Trilogy Metals (TMQ) risk factors, FY2024 10-K

Risks Related to the Company’s Mineral Properties

1. 01We may not have sufficient funds to develop our mineral projects or to complete further exploration programs
2. 02Even if one of our mineral projects is determined to be economically viable to develop into a mine, such development may not be successful
3. 03The Upper Kobuk Mineral Projects are located in a remote area of Alaska, and access to them is limited. Exploration and any future development or production activities may be limited and delayed by infrastructure challenges, inclement weather and a shortened exploration season
4. 04We are dependent on a third party that participates in exploration and development of our Upper Kobuk Mineral Projects
5. 05We have no history of production and no revenue from mining operations
6. 06Changes in the market price of copper, zinc and other metals, which in the past have fluctuated widely, will affect our ability to finance continued exploration and development of our projects and affect our operations and financial condition
7. 07Title and other rights to our properties may be subject to challenge
8. 08We expect to incur losses unless and until such time as our mineral projects generate sufficient revenues to fund continuing operations. The exploration and development of our mineral properties will require the commitment of substantial financial resources that may not be available
9. 09High metal prices in past years have encouraged increased mining exploration, development and construction activity, which has increased demand for, and cost of, exploration, development and construction services and equipment

Risks Relating to the Mining Industry and Mineral Reserves

1. 10Mineral resource and reserve calculations are only estimates
2. 11Significant uncertainty exists related to inferred mineral resources
3. 12Mining is inherently risky and subject to conditions or events beyond our control
4. 13We cannot provide assurance that we will successfully acquire commercially mineable mineral rights

Risks Relating to Government Regulation

1. 14We are subject to significant governmental regulations
2. 15We require further permits in order to conduct current and anticipated future operations, and delays in obtaining or failure to obtain such permits, or a failure to comply with the terms of any such permits that we have obtained, would adversely affect our business
3. 16Our activities are subject to environmental laws and regulations that may increase our costs and restrict our operations
4. 17Environmental hazards may exist on our properties that are unknown to us at the present time and that have been caused by previous owners or operators or that may have occurred naturally. We may be liable for remediating such damage
5. 18Land reclamation requirements for our exploration properties may be burdensome

Risks Related to the Acquisition of New Projects

1. 19Risks inherent in acquisitions of new properties
2. 20We face industry competition in the acquisition of exploration properties and the recruitment and retention of qualified personnel

Risks Related to the Company’s Executive Officers and Board of Directors

1. 21We may experience difficulty attracting and retaining qualified management and technical personnel to grow our business
2. 22Some of our directors and officers have conflicts of interest as a result of their involvement with other natural resource companies
3. 23General economic conditions may adversely affect our growth, future profitability and ability to finance
4. 24Future sales or issuances of equity securities could decrease the value of any existing Common Shares, dilute investors’ voting power and reduce our earnings per share
5. 25Our largest shareholder has significant influence on us and may also affect the market price and liquidity of the securities
6. 26Our Common Shares are subject to various factors that have historically made share prices volatile
7. 27We do not intend to pay any cash dividends in the foreseeable future
8. 28Global climate change is an international concern and could impact our ability to conduct future operations
9. 29Adverse publicity from non-governmental organizations could have a material adverse effect on us
10. 30We may fail to achieve and maintain the adequacy of our internal control over financial reporting as per the requirements of the Sarbanes-Oxley Act
11. 31Our business is subject to evolving corporate governance and public disclosure regulations that have increased both our compliance costs and the risk of noncompliance, which could have an adverse effect on our stock price
12. 32In the future, we may be subject to legal proceedings