07:00 AM EDT, 10/08/2024 (MT Newswires) -- Trilogy Metals ( TMQ ) on Tuesday said its third-quarter loss narrowed and that its outlook continues to be determined by progress at the Upper Kobuk Mineral Projects.

Trilogy, which has a 50% interest in Ambler Metals that in turns has a 100% interest in the Upper Kobuk Mineral Projects in northwestern Alaska, said its net loss for the three months ended August 31 narrowed to US$1.6 million from a loss of $4.1 million for the same three months last year.

The decrease in comprehensive loss is primarily due to the decrease in its share of losses of Ambler Metals, Trilogy said, adding that the decline in its share of losses of Ambler Metals is mainly due to the decrease in corporate wages and in mineral property expenses partially offset from the increase in professional fees. The primary drivers for the decrease in mineral property expenses over the comparative quarter in the prior year were from a reduction in activities both at the project level and at the Ambler Access Project.

The team at Ambler Metals visited the Bornite camp in July for a site inspection, regular asset maintenance and certain environmental sampling with no issues reported, TMQ said.

The board of Ambler Metals approved a 2024 fiscal year budget totaling $5.5 million to support external and community affairs, to maintain the State of Alaska mineral claims in good standing, and for the maintenance of physical assets. During the nine-month period ended August 31, 2024, Ambler Metals spent $3.5 million on salaries and wages, professional fees, engineering, project support costs and mineral property expenses, excluding the Ambler Access Project costs compared with a budget of $4.5 million.

On August 31, TMQ had cash and cash equivalents and working capital of $25.7 million. During the nine months ended August 31, 2024, Trilogy received $25.0 million from Ambler Metals as a return of excess cash to the joint venture owners. The company said although it has a strong cash position, management continues with cash preservation strategies to reduce cash expenditures where feasible, including but not limited to reductions in marketing, investor conferences and office expenses. In addition, the company's board of directors continues to receive all of their fees in deferred share units in an effort to preserve cash. The company's senior management team is also continuing to receive a portion of their base salaries and all of their short- and long-term compensation in shares of the company to preserve cash.

Trilogy edged up $0.04 to $0.66 yesterday.