Q3 2024 Highlights
During and subsequent to the third quarter of 2024, the Company's highlights included:
- On
July 29, 2024 , the Company announced that it has entered into a binding arrangement agreement, as may be amended, supplemented or otherwise modified from time to time (the "Arrangement Agreement") withBHP Investments Canada Inc. ("BHP"), a wholly-owned subsidiary of BHP Group Limited, and Lundin Mining Corporation ("Lundin Mining", and together with BHP, the "Purchaser Parties") whereby the Purchaser Parties will acquire all of the outstanding common shares of Filo that the Purchaser Parties and their respective affiliates do not already own through a plan of arrangement (the "Transaction") for total consideration of approximately Canadian dollars ("$CAD") 4.1 billion ($CAD 33.00/share) through a combination of cash and Lundin Mining shares. The Transaction is expected to be completed in the first quarter of 2025, subject to the satisfaction or waiver of closing conditions. Concurrent with entering into the Arrangement Agreement, Filo and each of the Purchaser Parties (or their affiliates) entered into a subscription agreement pursuant to which the Purchaser Parties subscribed for an aggregate of 3,484,848Filo Shares at an issue price of $CAD 33.00 per Filo Share, or approximately $CAD 115.0 million in the aggregate (the "Concurrent Private Placement"). The Concurrent Private Placement was not conditional on completion of the Transaction and was completed onAugust 7, 2024 . Please refer to the Company press releases datedJuly 29, 2024 andAugust 7, 2024 for more information; - On
September 26, 2024 , the Company announced that the shareholders of the Company (the "Shareholders"), at the special meeting of Shareholders held that day (the "Meeting"), approved the Transaction. Please refer to the press release datedSeptember 26, 2024 for more information; - On
October 8, 2024 , the Company announced that it has obtained a final order from theOntario Superior Court of Justice (Commercial List) approving the Transaction. Please refer to the press release datedOctober 8, 2024 for more information; - The Company resumed drilling operations during
September 2024 (halted inmid-April 2024 ), with all employees and contractors remobilized to the Project Site. During the three and nine months endedSeptember 30, 2024 the Company drilled 1,766m and 18,441m, respectively.
2024 Drilling and Assay Results
Drilling and assay results disclosed by the Company during and subsequent to the nine months ended
Outlook
Drilling activities recommenced at the
As a result of the shutdown of the drilling program, the Company is now expecting to drill between 30,000 and 35,000 metres during 2024, down from the original target of 40,000m. The focus of the 2024 program will remain exploration and resource growth with multiple step-out targets in all directions from zones of known mineralization, including both the Bonita and Aurora Zones. The Company continues to maintain a strong focus on improving drill productivity through a variety of initiatives.
Data collected from the current campaign is being used to develop a comprehensive geological model which will guide further exploration. The Company is continuing preliminary metallurgical testwork on the sulphide mineralization, as well as environmental and social baseline programs in support of future project permitting.
The Company's plans and timelines are subject to equipment and staff availability, along with being able to operate safely and effectively and in accordance with the Company's health and safety protocols.
Selected Financial Information
Effective
The $CAD/$USD exchange rates used to reflect the change in presentation currency were as follows:
|
Q4-22 |
Q1-23 |
Q2-23 |
Q3-23 |
Q4-23 |
Average rate |
n/a |
0.7398 |
0.7445 |
0.7456 |
0.7344 |
Closing rate |
0.7383 |
n/a |
n/a |
n/a |
0.7561 |
(in thousands of US dollars) |
|
|
|
|
2024 |
2023 (Restated) |
2023 (Restated) |
Cash and cash equivalents |
100,144 |
81,748 |
55,313 |
Working capital |
85,528 |
65,776 |
44,518 |
Mineral properties |
8,568 |
7,618 |
7,189 |
Total assets |
114,972 |
94,049 |
63,470 |
Financial Results
(in thousands of US dollars, except per share amounts) |
Three months ended |
Nine months ended |
||||
|
|
|
|
|||
|
|
2024 |
2023 (Restated) |
2024 |
2023 (Restated) |
|
Exploration and project investigation |
|
17,294 |
27,331 |
70,347 |
79,424 |
|
General and administration ("G&A"), excluding |
|
3,274 |
1,274 |
6,013 |
4,273 |
|
Share-based compensation expense(1) |
|
1,200 |
1,254 |
6,401 |
5,289 |
|
Net loss |
|
17,929 |
17,431 |
70,032 |
61,645 |
|
Basic and diluted loss per share |
|
0.13 |
0.13 |
0.53 |
0.49 |
(1) |
Share based compensation is a non-cash cost which reflects the amortization of the estimated fair value of share options over their vesting period. The fair value of share options is calculated using the Black-Scholes pricing model, which relies heavily on the Company's share price and historical share price volatility. A portion of this expense is included in Exploration and Project Investigation expense. |
||||||
The financial information in this table was selected from the Company's unaudited condensed interim consolidated financial statements for the three and nine months ended |
During the three months ended
Exploration and project investigation expenses for the three and nine months ended
For the three and nine months ended
Liquidity and Capital Resources
As at
The Company will continue to deploy the majority of its treasury to fund ongoing advancement of the
About Filo del Sol
Filo del Sol is a high-sulphidation epithermal copper-gold-silver deposit associated with one or more large porphyry copper-gold systems. Overlapping mineralizing events combined with weathering effects, including supergene enrichment, have created several different styles of mineralization, including structurally controlled and breccia-hosted gold, manto-style high-grade silver (+/- copper) and high-grade supergene enriched copper within a broader envelope of disseminated, stockwork and breccia-hosted sulphide copper and gold mineralization. This complex geological history has created a heterogeneous orebody which is characterized by zones of very high-grade copper +/- gold +/- silver mineralization within a large envelope of more homogeneous, lower-grade mineralization.
Qualified Persons and Technical Information
The scientific and technical disclosure for the
The field programs were carried out under the supervision of the Mr. Carmichael. Whole core was transported to the Company's core processing facility located near Rodeo,
Samples were delivered to the ALS preparation laboratory in Mendoza where they were crushed and a 500g split was pulverized to 85% passing 200 mesh. The prepared samples were sent to either the ALS assay laboratory in
Mineralized zones within the Filo del Sol deposit are typically flat-lying, or bulk porphyry-style zones and drilled widths are interpreted to be very close to true widths.
Copper Equivalent is calculated based on
About
Filo is a Canadian exploration and development company focused on advancing its 100% owned Filo del Sol copper-gold-silver deposit located in
Additional Information
The Company's condensed interim consolidated financial statements for the three and nine months ended
The Company's certified adviser on the Nasdaq First North Growth Market is
The information contained in this news release was accurate at the time of dissemination but may be superseded by subsequent news release(s). The Company is under no obligation, nor does it intend to update or revise the forward-looking information, whether as a result of new information, future events or otherwise.
This information was submitted by
On behalf of Filo,
President and CEO
APPENDIX 1 – 2024 DRILLING AND ASSAY RESULTS
Drilling and assay results disclosed by the Company during and subsequent to the nine months ended
Hole-ID |
From (m) |
To (m) |
Length (m) |
Cu (%) |
Au (g/t) |
Ag (g/t) |
CuEq1 (%) |
FSDH093 |
338.8 |
1,788.0 |
1,449.2 |
0.41 |
0.21 |
5.0 |
0.61 |
incl. |
492.0 |
1,144.0 |
652.0 |
0.55 |
0.25 |
8.6 |
0.81 |
incl. |
804.0 |
1,080.0 |
276.0 |
0.66 |
0.31 |
6.7 |
0.95 |
and incl. |
1,674.0 |
1,750.0 |
76.0 |
0.63 |
0.26 |
2.5 |
0.84 |
FSDH094 |
192.0 |
1,490.0 |
1,298.0 |
0.59 |
0.40 |
15.0 |
1.01 |
incl. |
364.0 |
416.0 |
52.0 |
0.59 |
0.47 |
252.4 |
3.15 |
and incl. |
444.0 |
748.0 |
304.0 |
0.84 |
0.53 |
9.4 |
1.30 |
FSDH097 |
368.0 |
1,445.0 |
1,077.0 |
0.52 |
0.25 |
22.4 |
0.89 |
incl. |
368.0 |
1,126.0 |
758.0 |
0.53 |
0.30 |
31.0 |
1.03 |
incl. |
372.0 |
521.0 |
149.0 |
0.35 |
0.10 |
128.0 |
|
incl. |
450.0 |
474.0 |
24.0 |
0.36 |
0.15 |
366.8 |
|
incl. |
466.0 |
474.0 |
8.0 |
0.44 |
0.19 |
725.2 |
|
and incl. |
707.0 |
944.0 |
237.0 |
0.73 |
0.60 |
3.0 |
1.20 |
FSDH098 |
410.0 |
1,363.8 |
953.8 |
0.31 |
0.13 |
2.1 |
0.42 |
FSDH100 |
256.0 |
887.3 |
631.3 |
0.38 |
0.35 |
5.8 |
0.68 |
incl. |
340.0 |
360.0 |
20.0 |
0.42 |
0.29 |
95.8 |
|
FSDH101 |
540.0 |
1,379.5 |
839.5 |
0.31 |
0.11 |
1.8 |
0.41 |
incl. |
550.0 |
972.0 |
422.0 |
0.38 |
0.13 |
2.3 |
0.50 |
FSDH102 |
12.0 |
699.0 |
687.0 |
0.18 |
0.16 |
4.2 |
0.33 |
incl. |
250.0 |
478.0 |
228.0 |
0.34 |
0.15 |
2.4 |
0.47 |
incl. |
250.0 |
349.6 |
99.6 |
0.51 |
0.14 |
2.2 |
0.63 |
FSDH103 |
296.0 |
1,556.0 |
1,260.0 |
0.58 |
0.36 |
2.4 |
0.86 |
incl. |
302.0 |
336.0 |
34.0 |
4.33 |
0.97 |
16.8 |
5.19 |
incl. |
318.0 |
326.0 |
8.0 |
10.06 |
2.36 |
41.3 |
12.14 |
incl. |
534.0 |
1,048.0 |
514.0 |
0.62 |
0.54 |
2.7 |
1.04 |
FSDH104 |
40.0 |
106.0 |
66.0 |
0.17 |
0.15 |
22.4 |
0.48 |
Plus |
744.0 |
1,336.0 |
592.0 |
0.41 |
0.13 |
3.7 |
0.54 |
incl. |
890.0 |
1,062.0 |
172.0 |
0.45 |
0.17 |
5.8 |
0.63 |
FSDH105 |
714.0 |
1,284.0 |
570.0 |
0.34 |
0.10 |
1.4 |
0.43 |
incl. |
820.0 |
1,050.0 |
230.0 |
0.43 |
0.14 |
1.4 |
0.54 |
FSDH106 |
26.0 |
190.0 |
164.0 |
0.15 |
0.10 |
2.3 |
0.24 |
FSDH108 |
69.8 |
79.8 |
10.0 |
0.95 |
0.56 |
36.4 |
1.68 |
incl. |
216.8 |
1,172.0 |
955.2 |
0.36 |
0.15 |
3.9 |
0.50 |
incl. |
382.0 |
1,006.0 |
624.0 |
0.45 |
0.18 |
5.0 |
0.63 |
incl. |
496.0 |
548.0 |
52.0 |
0.66 |
0.28 |
31.6 |
1.14 |
FSDH109 |
4.0 |
10.0 |
6.0 |
0.35 |
0.44 |
1.0 |
0.68 |
plus |
110.0 |
222.5 |
112.5 |
0.47 |
0.06 |
1.2 |
0.52 |
plus |
706.0 |
728.0 |
22.0 |
0.52 |
0.08 |
1.1 |
0.59 |
FSDH111 |
No significant intervals |
||||||
FSDH112 |
96.0 |
1,132.0 |
1,036.0 |
0.47 |
0.17 |
5.7 |
0.65 |
incl. |
96.0 |
126.0 |
30.0 |
0.29 |
0.40 |
27.1 |
0.82 |
and incl. |
535.1 |
556.0 |
20.9 |
0.62 |
0.25 |
13.5 |
0.92 |
and incl. |
659.5 |
1,132.0 |
472.5 |
0.80 |
0.22 |
6.4 |
1.02 |
FSDH114 |
92.0 |
1,552.0 |
1,460.0 |
0.34 |
0.11 |
3.2 |
0.45 |
incl. |
92.0 |
100.0 |
8.0 |
0.51 |
0.32 |
6.3 |
0.80 |
and incl. |
202.0 |
212.0 |
10.0 |
0.80 |
0.34 |
2.3 |
1.07 |
and incl. |
312.0 |
1,398.0 |
1,086.0 |
0.38 |
0.13 |
3.8 |
0.51 |
incl. |
750.0 |
960.0 |
210.0 |
0.51 |
0.19 |
2.1 |
0.66 |
and incl. |
1,090.0 |
1,248.0 |
158.0 |
0.54 |
0.21 |
1.9 |
0.70 |
incl. |
1,176.0 |
1,202.0 |
26.0 |
0.97 |
0.31 |
2.8 |
1.22 |
(1)
Copper Equivalent is calculated based on |
Additional information on these drilling results is disclosed in the Corporation's press releases. As of the date of this press release, holes FSDH099, FSDH107, FSDH110, FSDH112, FSDH113 and FSDH116 have been completed with assays pending. Results in the above table for FSDH112 are partial results to the depth the hole was at when the drilling program was temporarily suspended. It was subsequently completed to a final depth of 1,379m. Assay results for these holes will be released as they are received, analyzed and confirmed by the Company.
Cautionary Note Regarding Forward-Looking Statements
Certain statements made and information contained herein in the news release constitutes "forward-looking information" and "forward-looking statements" within the meaning of applicable securities legislation (collectively, "forward-looking information"). The forward-looking information contained in this news release is based on information available to the Company as of the date of this news release. Except as required under applicable securities legislation, the Company does not intend, and does not assume any obligation, to update this forward-looking information. Generally, this forward-looking information can frequently, but not always, be identified by use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "projects", "budgets", "assumes", "strategy", "goals", "objectives", "potential", "possible", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events, conditions or results "will", "may", "could", "would", "should", "might" or "will be taken", "will occur" or "will be achieved" or the negative connotations thereof. All statements other than statements of historical fact may be forward-looking statements.
The Company believes that the expectations reflected in the forward-looking information included in this news release are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking information should not be unduly relied upon. Information contained in this news release is as of the date of this press release. In particular, this press release contains forward-looking information pertaining to the consummation and timing of the Transaction; the satisfaction of the conditions precedent to the Transaction; and discussion of future plans, projects, objectives, estimates and forecasts and the timing related thereto; assumptions made in the interpretation of drill results, geology, grade, geochemistry, potential implications of geophysics interpretations, and continuity of mineral deposits; expectations regarding access and demand for equipment, skilled labour and services needed for exploration and development of mineral properties; and that activities will not be adversely disrupted or impeded by exploration, development, operating, regulatory, political, community, economic, environmental and/or healthy and safety risks. In addition, this news release may contain forward-looking statements or information pertaining to: potential exploration upside at the
Statements relating to "mineral resources" are deemed to be forward-looking information, as they involve the implied assessment, based on certain estimates and assumptions that the mineral resources described can be profitably produced in the future.
The forward-looking statements contained in this news release are made as at the date of this news release and Filo does not undertake any obligations to publicly update and/or revise any of the included forward-looking statements, whether as a result of additional information, future events and/or otherwise, except as may be required by applicable securities laws. Forward-looking information is provided for the purpose of providing information about management's current expectations and plans and allowing investors and others to get a better understanding of the Company's operating environment. Forward-looking information is based on certain assumptions that the Company believes are reasonable, including that the current price of and demand for commodities will be sustained or will improve, the supply of commodities will remain stable, that the general business and economic conditions will not change in a material adverse manner, that financing will be available if and when needed on reasonable terms and that the Company will not experience any material labour dispute, accident, or failure of plant or equipment. These factors are not, and should not be construed as being, exhaustive. Although the Company has attempted to identify important factors that would cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated, or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements, including failure to receive the required regulatory approvals to effect the Transaction; changes in laws, regulations and government practices; risks pertaining to the outbreak of the global pandemics; government regulation of mining operations; environmental risks; and other risks and uncertainties disclosed in the Company's periodic filings with Canadian securities regulators and in other Company reports and documents filed with applicable securities regulatory authorities from time to time, including the Company's Annual Information Form available under the Company's profile at www.sedarplus.ca. All the forward-looking information contained in this document is qualified by these cautionary statements. Readers are cautioned not to place undue reliance on forward-looking information due to the inherent uncertainty thereof.
In addition to the foregoing, there are a number of risks, uncertainties and assumptions relating to the Transaction which may have a material and adverse impact on the future operating results and financial performance of the Company and could cause actual events to differ materially from those described in forward-looking statements related to the Company, including those risk factors set out under "Risk Factors" of the Company's management information circular dated
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