Filo (FIL) Q3 2024 earnings summary

Executive summary

• Entered into a binding agreement for acquisition by BHP and Lundin Mining, with a joint venture to develop the Vicuña district, including Filo del Sol and Josemaria projects.

• Shareholders approved the transaction, expected to close in Q1 2025, with a total consideration of ~$CAD 4.1 billion.

• Drilling at Filo del Sol resumed in September 2024 after a weather-related halt, with 18,441m drilled YTD.

Financial highlights

• Net loss for Q3 2024 was $17.9 million, and $70.0 million for the nine months ended September 30, 2024 (2023: $17.4 million and $61.6 million).

• Exploration costs for Q3 2024 were $17.3 million, down from $27.3 million in Q3 2023 due to halted drilling.

• Cash and cash equivalents at September 30, 2024 were $100.1 million, up from $81.7 million at December 31, 2023.

• Operating loss for Q3 2024 was $21.6 million, compared to $29.6 million in Q3 2023.

• Net gain from marketable securities for the nine months was $7.6 million, down from $23.1 million in 2023.

Outlook and guidance

• 2024 drilling target revised to 30,000–35,000m (from 40,000m) due to earlier program shutdown.

• Focus remains on exploration and resource growth at Filo del Sol, with ongoing geological modeling and metallurgical testwork.

• Sufficient working capital for near-term operations, but further funding needed if the acquisition does not close.