Latest news with #Non-IFRS
Hamilton Spectator
8 hours ago
- Business
- Hamilton Spectator
Colabor Group Reports Results for the Second Quarter 2025
SAINT-BRUNO-DE-MONTARVILLE, Quebec, July 24, 2025 (GLOBE NEWSWIRE) — Colabor Group Inc. (TSX: GCL) ('Colabor' or the 'Company') reports its results for the second quarter ended June 14, 2025. Second Quarter 2025 Financial Highlights: Recent Event: On July 21, 2025, the Company announced that it identified a cybersecurity incident on July 20, 2025 that has impacted its internal IT systems. Refer to section 2.1 in MD&A for more information. Table of Second Quarter 2025 Financial Highlights: (1) Non-IFRS measure. Refer to the table Reconciliation of Net (Loss) Earnings to adjusted EBITDA in MD&A section 6 'Non-IFRS Performance Measures'. Adjusted EBITDA corresponds to net operating (loss) earnings before costs not related to current operations, depreciation and amortization and expenses for stock-based compensation plan. (2) Non-IFRS measure. Refer to MD&A section 6 'Non-IFRS Performance Measures'. Net debt corresponds to bank indebtedness, current portion of long-term debt and long-term debt, net of cash. (3) Financial leverage ratio is an indicator of the Company's ability to service its long-term debt. It is defined as net debt / adjusted EBITDA and pro forma adjustments related to the recent Acquisition, less lease liability payments and interests on lease obligations for the last four quarters. Refer to MD&A section 6 'Non-IFRS Performance Measures'. 'The closing of the Acquisition of Alimplus' distribution activities was an important milestone during the second quarter. Once integrated, the Acquisition will allow us to significantly accelerate our growth plan and reinforces us as a Quebec leader in food distribution. This Acquisition includes the signing of a six-year distribution agreement to serve the four stores of Groupe Mayrand Alimentation inc. It is highly strategic and allows us to gain a customer base in coveted territories, create significant synergies and offer cross-selling opportunities, particularly with our private brand and Tout-Prêt, Lauzon and Norref's products,' said Mr. Frenette. 'Mainly due to the acquisition and the growth of major accounts in the second quarter, we were able to generate revenue growth and partially offset the impact of ongoing macroeconomic headwinds affecting the restaurant industry, as well as the renewal of a major contract in December 2024, at less favorable market conditions. The latter had a significant impact on our profitability during the period, and we aim to gradually improve our margins by focusing on a more favorable product and customer mix in the upcoming quarters,' added Mr. Frenette. Results for the Second Quarter of 2025 Consolidated sales for the second quarter were $169.5 million, an increase of 5.1% compared to $161.3 million during the corresponding quarter of 2024. Sales from the distribution activities increased by 7.5% as a result of the recent Acquisition which contributed $8.8 million, the organic sales volume growth with major account clients and the effect of inflation. This growth was mitigated by the renewal of a supply agreement with an institutional customer at economic conditions significantly lower to the margins in effect in 2024, as well as the current economic uncertainties affecting the restaurant industry. Sales from the wholesale activities have decreased by 1.8% mainly as a result of the restaurant industry slowdown during the second quarter of 2025. Adjusted EBITDA(1) from continuing operations was $5.4 million or 3.2% of sales from continuing operations compared to $9.7 million or 6.0% during 2024. These variations result from the decrease in gross margin related to the supply agreement renewed in December 2024, as previously explained. Net loss from continuing operations and net loss were $2.3 million, down from net earnings from continuing operations and net earnings of $1.7 million for the corresponding quarter of the previous year, resulting essentially from a decrease of the adjusted EBITDA(1) and an increase in depreciation and costs not related to current operations, mitigated by higher income taxes recovery. Results for 24-week period of 2025 Consolidated sales for the 24-week period were $301.2 million, compared to $292.5 million for the corresponding period of 2024. Sales from the distribution activities grew by 4.9% and the wholesale sales declined by 2.8%. Adjusted EBITDA(1) from continuing operations was $7.6 million or 2.5% of sales from continuing operations compared to $14.6 million or 5.0% in 2024. These variations result from a decrease in gross margin related to the supply agreement renewed in December 2024. Net loss from continuing operations and net loss were $6.3 million, down from $0.1 million in the previous fiscal year. This variation is explained by the elements previously mentioned. Cash Flow and Financial Position Cash flows from operating activities were $4.5 million and $10.7 million for the 12 and 24-week periods of 2025, respectively, compared to $5.0 million and $16.7 million for the corresponding period of 2024. This decrease is mainly due to the decrease in adjusted EBITDA(1) mitigated by a lower utilization of working capital(4). The lower utilization of working capital(4) is explained by the timing of supplier payments. As at June 14, 2025, the Company's working capital(4) was $48.3 million, down from $50.3 million at the end of the fiscal year 2024. This decrease reflects improved management of accounts payable, mitigated by the recent Acquisition. As at June 14, 2025, the Company's net debt(2) was increased to $97.3 million, compared to $47.8 million at the end of the fiscal year 2024, resulting from an increase in the amended and restated credit facility of $34.3 million and a new highly subordinated debt of $15.0 million to finance the Acquisition. (4) Working capital is a non-IFRS performance measure. Working capital is an indicator of the Company's ability to hedge its current liabilities with its current assets. Refer to MD&A section 3.2 'Financial Position' for detailed calculation. Outlook 'The recent Acquisition positions us well to differentiate ourselves in a competitive market. In the second half of the year, we plan to focus on optimizing our activities in order to generate further efficiencies through an expanded customer base, allowing us to continue our momentum in targeted territories and industries. Improving our profitability and prioritizing debt reduction will remain key areas of focus, as they have been in recent years,' concluded Mr. Frenette. Non-IFRS Performance Measures The information provided in this release includes non-IFRS performance measures, notably adjusted earnings before financial expenses, depreciation and amortization and income taxes ('Adjusted EBITDA')(1). As these concepts are not defined by IFRS, they may not be comparable to those of other companies. Refer to Section 6 'Non-IFRS Performance Measures' in the Management's Discussion and Analysis. Additional Information The Management's Discussion and Analysis and the consolidated financial statements of the Company are available on SEDAR+ ( ). Additional information, including the annual information form, about Colabor Group Inc. can also be found on SEDAR+ and on the Company's website at . Forward-Looking Statements This press release contains certain forward-looking statements as defined under applicable securities law. Forward-looking information may relate to Colabor's future outlook and anticipated events, business, operations, financial performance, financial condition or results and, in some cases, can be identified by terminology such as 'may'; 'will'; 'should'; 'expect'; 'plan'; 'anticipate'; 'believe'; 'intend'; 'estimate'; 'predict'; 'potential'; 'continue'; 'foresee'; 'ensure' or other similar expressions concerning matters that are not historical facts. Particularly, statements regarding the Company's financial guidelines, future operating results and economic performance, objectives and strategies are forward-looking statements. These statements are based on certain factors and assumptions including expected growth, results of operations, performance and business prospects and opportunities, which Colabor believes are reasonable as of the current date. Assumptions such as synergies objective are based on a preliminary analysis of the organizational structure and the current level of spending across the Company. Our synergies objective assumes that we will be able to establish and maintain an effective process for sharing best practices, and is also based on our ability to integrate the acquired business. An important change in these facts and assumptions could significantly impact our synergies estimate as well as the timing of the implementation of our various initiatives. Refer in particular to section 2.2 'Development Strategies and Outlook' of the Company's MD&A. While Management considers these assumptions to be reasonable based on information currently available to the Company, they may prove to be incorrect. Forward-looking information is also subject to certain factors, including risks and uncertainties that could cause actual results to differ materially from what Colabor currently expects. For more exhaustive information on these risks and uncertainties, the reader should refer to section 7 'Risks and Uncertainties' of the Company's MD&A. These factors, which include risks related to the repercussions of any cyber security incident and any negotiations for financial relief, are not intended to represent a complete list of the factors that could affect Colabor and future events and results may vary significantly from what Management currently foresees. The reader should not place undue importance on forward-looking information contained in this press release, information representing Colabor's expectations as of the date of this press release (or as of the date they are otherwise stated to be made), which are subject to change after such date. While Management may elect to do so, the Company is under no obligation (and expressly disclaims any such obligation) and does not undertake to update or alter this information at any particular time, whether as a result of new information, future events or otherwise, except as required by law. Conference Call Colabor will hold a conference call to discuss these results on Friday, July 25, 2025, beginning at 9:30 a.m. Eastern time. Interested parties can join the call by dialing 1-800-990-4777 (from anywhere in North America) or 1-289-819-1299 (Toronto) or 1-514-400-3794 (Montreal). If you are unable to participate, you can listen to a recording by dialing 1-888-660-6345 or 1-289-819-1450 and entering the code 34320# on your telephone keypad. The recording will be available from 1:30 p.m. on Friday, July 25, 2025, until 11:59 p.m. on August 1, 2025. Note that the recording will be available offline on our website at the following address: You can also use the QuickConnect link: . This new link allows any participant to access the conference call by clicking on the URL link and enter their name and phone number. About Colabor Colabor is a distributor and wholesaler of food and related products serving the hotel, restaurant and institutional markets or 'HRI' in Quebec and in the Atlantic provinces, as well as the retail market. Within its two operating activities, Colabor offers specialty food products such as meat, fish and seafood, as well as food and related products through its Broadline activities. Further information:
Cision Canada
9 hours ago
- Business
- Cision Canada
Atlas Engineered Products Announces Acquisition of Penn-Truss MFG Inc. in Saskatchewan, Canada
, July 24, 2025 /CNW/ - Atlas Engineered Products ("AEP" or the "Company") (TSXV: AEP) (OTC Markets: APEUF) announced today that the Company has completed the acquisition of Penn-Truss MFG Inc. ("Penn-Truss") located in Saltcoats, Saskatchewan, Canada. Penn-Truss is a manufacturer of roof and floor trusses and a supplier of engineered wood products ("EWP"). "I am excited to announce the acquisition of our 10 th manufacturing facility and our 1 st facility in Saskatchewan. This acquisition expands our national footprint with more coverage through the Canadian Prairies," said Hadi Abassi, CEO, President and Founder of the Company. "Penn-Truss in Saskatchewan is close enough to our South Central facility in Manitoba that they can share some resources and build synergies that will increase efficiencies in the Prairie market. The market across Saskatchewan and Manitoba has picked up significantly since the beginning of 2025 and we look forward to the overall growth potential Penn-Truss will bring to the AEP group." The acquisition of Penn-Truss was completed effective July 24 th, 2025. To acquire all the issued and outstanding shares of Penn-Truss, the Company paid a purchase price of $3.8 million with a working capital adjustment to be determined and finalized within 60 days of closing date of the SPA. The purchase price will be paid for as follows: $760,000 in cash nine months post closing (subject to the working capital adjustment), up to $760,000 in cash or shares of AEP at the discretion of AEP based on the performance of Penn-Truss for fiscal 2025, and the remaining in cash at closing. The performance component will be determined based on adjusted EBITDA to be finalized within five business days of filing the Company's fiscal 2025 audited financial results, and the number of shares issued will be based on price per share equal to the greater of (i) the 10-day volume weighted average price ("VWAP") of the common shares at the time of determining the earnout amount, and (ii) market price of the common shares at the time of determining the earnout amount, provided that in no event shall such price be lower than the discounted market price (determined in accordance with the TSX Venture Exchange policies) of the common shares as of the day prior to today's date. Unaudited fiscal year ended December 31, 2024, Penn-Truss generated just over $8.7 million in revenues and non-IFRS financial measure normalized EBITDA of approximately $500,000 (see "Non-GAAP/Non-IFRS Financial Measures"). The three-year average non-IFRS financial measure normalized EBITDA was approximately $955,000, resulting in a 3.98x EBITDA for the business operations (excluding the land and buildings which were not purchased by the Company). The Company anticipates normalized EBITDA for fiscal 2025 to be closer to the three-year average. The location and equipment were key considerations in this acquisition. The site strategically broadens AEP's national presence, marking its initial entry into Saskatchewan with an established 600km delivery radius based on historical business patterns. Furthermore, an independent appraisal assessed the fair market value of all equipment at $3.1 million. Looking ahead, the Company expects to leverage its operating synergies and purchasing power to enhance Penn-Truss' operations through the integration process. The Company has also identified significant opportunities for organic growth through wall panel manufacturing and market expansion. Penn-Truss has done some wall panel manufacturing in the past, but it has not been a significant or regular part of their operation. Non-GAAP / Non-IFRS Financial Measures Certain financial measures in this news release do not have any standardized meaning under IFRS and, therefore are considered non-IFRS or non-GAAP measures. These non-IFRS measures are used by management to facilitate the analysis and comparison of period-to-period operating results and to assess whether Penn-Truss's operations are generating sufficient operating cash flow to fund working capital needs and to fund capital expenditures. As these non-IFRS measures do not have any standardized meaning under IFRS, these measures may not be comparable to similar measures presented by other issuers. The non-IFRS measures used in this news release may include "EBITDA", "adjusted EBITDA", and "normalized EBITDA". For a description of the composition of these measures as determined by the Company, please refer to AEP's Management's Discussion and Analysis for the three months ended March 31, 2025 under "Non-IFRS / Non-GAAP Financial Measures", available on AEP's website at or on SEDAR+ at About Atlas Engineered Products Ltd. AEP is a growth company that is acquiring and operating profitable, well-established operations in Canada's truss and engineered products industry. We have a well-defined and disciplined acquisition and operating growth strategy enabling us to scale aggressively and apply new automated technologies, giving us a unique opportunity to consolidate a fragmented industry of independent operators. Company contact details: Hadi Abassi, CEO & President, Founder Atlas Engineered Products Ltd. Email: [email protected] 250-754-1400 PO Box 37036 Country Club PO Nanaimo, BC V9T 6N4 FORWARD LOOKING INFORMATION Information set forth in this news release contains forward-looking statements, including statements with respect to: AEP's ability leverage its operating synergies and purchasing power to enhance Penn-Truss' operations through the integration process; opportunities for organic growth through wall panel manufacturing and market expansion; and normalized EBITDA for fiscal 2025. These statements reflect management's current estimates, beliefs, intentions and expectations; they are not guarantees of future performance. Although AEP believes that the expectations reflected in the forward looking statements are reasonable, there is no assurance that such expectations will prove to be correct, or that such future events will occur in the disclosed time frames or at all. AEP cautions that all forward looking statements are inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond AEP's control. Such factors include, among other things: risks and uncertainties related to the housing market, changes in interest rates and other risks and uncertainties relating to AEP, including those described in the Management's Discussion and Analysis ("MD&A") for AEP's three months ended March 31, 2025. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward-looking information. Except as required under applicable securities legislation, AEP undertakes no obligation to publicly update or revise forward-looking information. SOURCE Atlas Engineered Products Ltd.
Cision Canada
2 days ago
- Business
- Cision Canada
WESTERN ENERGY SERVICES CORP. RELEASES SECOND QUARTER 2025 FINANCIAL AND OPERATING RESULTS
CALGARY, AB, July 22, 2025 /CNW/ - Western Energy Services Corp. ("Western" or the "Company") (TSX: WRG) announces the release of its second quarter 2025 financial and operating results. Additional information relating to the Company, including the Company's financial statements and management's discussion and analysis ("MD&A") as at June 30, 2025 and for the three and six months ended June 30, 2025 and 2024 will be available on SEDAR+ at Non-International Financial Reporting Standards ("Non-IFRS") measures and ratios, such as Adjusted EBITDA, Adjusted EBITDA as a percentage of revenue, revenue per Operating Day, and revenue per Service Hour, as well as abbreviations and definitions for standard industry terms are defined later in this press release. All amounts are denominated in Canadian dollars (CDN$) unless otherwise identified. Operational and Financial Highlights Three Months Ended June 30, 2025 Financial Highlights: Second quarter revenue of $40.0 million in 2025 was $3.0 million (or 7%) lower than the second quarter of 2024, as higher contract drilling revenue in Canada was more than offset by lower production services revenue. Adjusted EBITDA of $5.9 million in the second quarter of 2025 was $0.6 million (or 11%) higher compared to $5.3 million in the second quarter of 2024. Adjusted EBITDA for the second quarter of 2025 included one-time reorganization costs of $1.0 million, whereas the second quarter of 2024 included $1.8 million of one-time reorganization costs. After normalizing for these one-time reorganization costs in both periods, Adjusted EBITDA in the second quarter of 2025 would have totalled $6.9 million, compared to $7.1 million in 2024, a decrease of $0.2 million due to lower production services activity in Canada. The Company incurred a net loss of $4.6 million in the second quarter of 2025 ($0.14 net loss per basic common share) as compared to a net loss of $5.1 million in the second quarter of 2024 ($0.15 net loss per basic common share) as higher Adjusted EBITDA and decreases in finance costs, were offset partially by higher depreciation expense and a decrease in income tax recovery. Second quarter additions to property and equipment of $6.0 million in 2025 compared to $5.6 million in the second quarter of 2024, consisting of $1.2 million of expansion capital related to rig upgrades and $4.8 million of maintenance capital. During the second quarter of 2025, the Company made a voluntary principal repayment of $5.0 million on its Second Lien Facility (as defined within this press release). Operational Highlights: In Canada, Operating Days of 764 in the second quarter of 2025 were 108 days (or 16%) higher compared to 656 days in the second quarter of 2024. Drilling rig utilization in Canada was 25% in the second quarter of 2025, compared to 21% in the same period of the prior year, mainly due to more upgraded rigs working through spring break up in 2025, as well as improved customer retention in 2025 resulting from targeted marketing efforts. Revenue per Operating Day in Canada averaged $32,709 in the second quarter of 2025, which was 3% higher than the same period of the prior year. In the United States ("US"), drilling rig utilization averaged 17% in the second quarter of 2025, which was lower than the second quarter of 2024, due to continued low industry activity in the US as well as a change in focus to North Dakota from Texas. Revenue per Operating Day in the US for the second quarter of 2025 averaged US$32,506, an 8% increase compared to US$30,016 in the same period of the prior year. The improvement in pricing reflects a more favorable rig mix following the Company's strategic decision to focus its US operations more in North Dakota. In Canada, service rig utilization was 19% in the second quarter of 2025, compared to 33% in the same period of the prior year, as Service Hours decreased by 43% to 7,693 hours from 13,444 hours in the same period of the prior year, mainly due to changes in customer programs. Revenue per Service Hour averaged $1,025 in the second quarter of 2025 and was 1% higher than the second quarter of 2024. Six Months Ended June 30, 2025 Financial Highlights: Revenue for the six months ended June 30, 2025 of $109.0 million was $4.0 million (or 4%) higher than the same period in 2024, as higher contract drilling revenue in Canada was offset partially by lower production services revenue. Adjusted EBITDA for the six months ended June 30, 2025 of $19.9 million was $0.6 million (or 3%) lower compared to $20.5 million in the same period of 2024, mainly due to one-time reorganization costs of $3.6 million. Included in Adjusted EBITDA for the six months ended June 30, 2024, was $1.8 million of one-time reorganization costs. After normalizing for one-time reorganization costs in both periods, Adjusted EBITDA in the first half of 2025 would have totalled $23.5 million, compared to $22.3 million in 2024, an increase of $1.2 million due to higher drilling revenue in Canada, which was offset partially by lower production services activity in Canada and lower drilling activity in the US. The Company incurred a net loss of $2.2 million in the first half of 2025 ($0.06 net loss per basic common share) as compared to a net loss of $3.7 million in the first half of 2024 ($0.11 net loss per basic common share) as decreases in depreciation expense, stock based compensation expense, and finance costs were offset by lower Adjusted EBITDA and income tax recovery. For the six months ended June 30, 2025, additions to property and equipment of $10.9 million compared to $7.5 million in the same period of the prior year, consisting of $1.9 million of expansion capital related to rig upgrades and $9.0 million of maintenance capital. Operational Highlights: In Canada, Operating Days of 2,077 for the six months ended June 30, 2025 were 468 days (or 29%) higher compared to 1,609 days in the same period of the prior year. Drilling rig utilization in Canada was 34% in the first half of 2025, compared to 26% in the same period of the prior year, mainly due to more upgraded rigs working through spring break up in 2025 than in 2024, as well as improved customer retention year over year due to targeted marketing efforts. Revenue per Operating Day in Canada averaged $33,288 for the six months ended June 30, 2025, which was consistent with the same period of the prior year. In the US, drilling rig utilization averaged 22% for the six months ended June 30, 2025, which was lower than 25% in the same period in the prior year, due to continued low industry activity in the US and a change in focus to North Dakota from Texas. Revenue per Operating Day in the US for the six months ended June 30, 2025 averaged US$29,759 a 4% decrease compared to US$30,967 in the same period of the prior year, mainly due to changes in rig mix. In Canada, service rig utilization was 27% in the six months ended June 30, 2025, compared to 38% in the same period of the prior year, as Service Hours decreased by 31% to 22,108 hours from 31,843 hours in the same period of the prior year, mainly due to changes in customer programs. Revenue per Service Hour averaged $1,052 in the first half of 2025 and was 1% higher than the same period in the prior year. On January 27, 2025, the Company announced that it extended the maturity date of its second lien secured term loan with Alberta Investment Management Corporation (the "Second Lien Facility") from May 18, 2026 to May 18, 2027. Selected Financial Information (stated in thousands, except share and per share amounts) Three months ended June 30 Six months ended June 30 Financial Highlights 2025 2024 Change 2025 2024 Change Revenue 40,005 43,033 (7 %) 109,015 105,015 4 % Adjusted EBITDA (1) 5,853 5,259 11 % 19,929 20,478 (3 %) Adjusted EBITDA as a percentage of revenue (1) 15 % 12 % 25 % 18 % 20 % (10 %) Cash flow from operating activities 19,804 19,260 3 % 22,482 27,062 (17 %) Additions to property and equipment 5,954 5,635 6 % 10,933 7,537 45 % Net loss (4,585) (5,136) 11 % (2,199) (3,681) 40 % – basic and diluted net loss per share (0.14) (0.15) 7 % (0.06) (0.11) 45 % Weighted average number of shares – basic and diluted 33,843,022 33,843,015 - 33,843,022 33,843,015 - Outstanding common shares as at period end 33,843,022 33,843,015 - 33,843,022 33,843,015 - (1) See "Non-IFRS Measures and Ratios" included in this press release. Three months ended June 30 Six months ended June 30 Operating Highlights (2) 2025 2024 Change 2025 2024 Change Contract Drilling Canadian Operations: Operating Days 764 656 16 % 2,077 1,609 29 % Revenue per Operating Day (3) 32,709 31,765 3 % 33,288 33,226 - Drilling rig utilization 25 % 21 % 19 % 34 % 26 % 31 % CAOEC industry Operating Days (4) 10,407 10,725 (3 %) 28,647 28,363 1 % United States Operations: Operating Days 110 153 (28 %) 277 317 (13 %) Revenue per Operating Day (US$) (3) 32,506 30,016 8 % 29,759 30,967 (4 %) Drilling rig utilization 17 % 24 % (29 %) 22 % 25 % (12 %) Production Services Service Hours 7,693 13,444 (43 %) 22,108 31,843 (31 %) Revenue per Service Hour (3) 1,025 1,016 1 % 1,052 1,040 1 % Service rig utilization 19 % 33 % (42 %) 27 % 38 % (29 %) (2) See "Defined Terms" included in this press release. (3) See "Non-IFRS Measures and Ratios" included in this press release. (4) Source: The Canadian Association of Energy Contractors ("CAOEC") monthly Contractor Summary, calculated on a spud to rig release basis. Financial Position at (stated in thousands) June 30, 2025 December 31, 2024 June 30, 2024 Working capital (1) 12,637 9,911 22,203 Total assets 407,791 430,981 443,354 Long-term debt – non current portion 89,057 91,657 106,912 (1) See "Defined Terms" included in this press release. Business Overview Western is an energy services company that provides contract drilling services in Canada and in the US and production services in Canada through its various divisions, its subsidiary, and its first nations relationships. Contract Drilling Western markets a fleet of 41 drilling rigs specifically suited for drilling complex horizontal wells across Canada and the US. Western is currently the fourth-largest drilling contractor in Canada, based on the CAOEC registered drilling rigs [1]. Western's marketed and owned contract drilling rig fleets are comprised of the following: (1) See "Contract Drilling Rig Classifications" included in this press release. (2) Source: CAOEC Contractor Summary as at July 22, 2025. Production Services Production services provides well servicing and oilfield equipment rentals in Canada. Western operates 62 well servicing rigs and is the second-largest well servicing company in Canada based on CAOEC registered well servicing rigs [2]. Western's well servicing rig fleet is comprised of the following: Business Environment Crude oil and natural gas prices impact the cash flow of Western's customers, which in turn impacts the demand for Western's services. The following table summarizes average crude oil and natural gas prices, as well as average foreign exchange rates, for the three and six months ended June 30, 2025 and 2024: (1) See "Abbreviations" included in this press release. (2) Source: Sproule June 30, 2025, Price Forecast, Historical Prices. West Texas Intermediate ("WTI") on average decreased by 21% and 14% for the three and six months ended June 30, 2025 respectively, compared to the same periods in the prior year. In 2025, crude oil prices were impacted by market volatility as a result of tariffs implemented by the US government, counter-tariffs in response by several countries, lower global demand and the continued conflict in the Middle East and Eastern Europe. 1 Source: CAOEC Drilling Contractor Summary as at July 22, 2025. 2 Source: CAOEC Well Servicing Fleet List as at July 22, 2025. Pricing on Western Canadian Select crude oil declined by 18% and 6% for the three and six months ended June 30, 2025 respectively, compared to the same periods of the prior year. Natural gas prices in Canada were higher in the three and six months ended June 30, 2025, compared to the same periods in the prior year with the 30-day spot AECO price increasing by 48% and 15% respectively. The US dollar to the Canadian dollar foreign exchange rate for the three and six months ended June 30, 2025 strengthened by 1% and 4% respectively, compared to the same periods in the prior year. Lower WTI prices in the first half of 2025 contributed to weaker industry drilling activity in the US. As reported by Baker Hughes Company [3], the number of active drilling rigs in the US decreased by approximately 5% to 554 rigs as at June 30, 2025 as compared to 581 rigs at June 30, 2024 and averaged 579 rigs during the six months ended June 30, 2025, compared to 613 rigs in the same period of the prior year. In Canada there were 157 active rigs in the Western Canadian Sedimentary Basin ("WCSB") at June 30, 2025, compared to 182 active rigs as at June 30, 2024, representing a decrease of approximately 14%; the CAOEC [4] reported that for drilling in Canada, the total number of Operating Days in the WCSB for the three months ended June 30, 2025, were 3% lower than the same period in the prior year, whereas the total number of Operating Days in the WSCB for the six months ended June 30, 2025 were 1% higher than the same period of the prior year. Outlook In 2025, commodity prices faced downward pressure due to trade tensions resulting from newly imposed US tariffs on imports and retaliatory measures from several countries. These actions contributed to a broader global trade conflict, heightening uncertainty in the global economy. Ongoing geopolitical conflict in Eastern Europe and the Middle East, combined with persistently weak global demand for crude oil, further impacted market sentiment. These macroeconomic factors are expected to impact commodity prices through the remainder of 2025. Additionally, in Canada, the outcome of the 2025 federal election may lead to shifts in energy policy, potentially affecting the approval of future energy infrastructure projects. This contributes to additional uncertainty for the Canadian energy services industry. The precise duration and extent of the adverse impacts of the current macroeconomic environment on Western's customers and operations remains uncertain at this time. Despite these headwinds, recent infrastructure developments present opportunities for the energy services industry. The Trans Mountain pipeline expansion commenced operations on May 1, 2024, providing critical takeaway capacity. Additionally, the Coastal GasLink pipeline delivered its first shipment of liquefied natural gas on June 30, 2025, and the LNG Canada project has begun operations in British Columbia. These projects are expected to support increased activity in Western Canada's energy sector. Western is also cautiously optimistic that the current trade environment may prompt renewed focus among Canadian provinces on strengthening domestic energy independence, which may help accelerate additional project approvals. To navigate this complex environment, Western has implemented several strategic initiatives in 2025, including a reorganization of senior leadership to enhance operational efficiency and support long-term growth. As part of this process, the decision was made to focus on US operations exclusively in North Dakota and redeploy assets previously operating in Texas. The Company remains focused on managing fixed costs, preserving balance sheet strength, deleveraging the business, and maintaining flexibility to respond to market conditions. With these initiatives in place, Western believes it is well-positioned to benefit from improving service demand and pricing momentum. Western's upgraded rig fleet positions the Company to remain competitive in a tightening market. The total rig fleet in the WCSB has decreased from 385 drilling rigs at June 30, 2024 to 372 drilling rigs as of July 22, 2025, representing a decrease of 13 drilling rigs, or 3%, which reduces the supply of drilling rigs for such projects. Currently, 11 of Western's drilling rigs and 8 of Western's well servicing rigs are operating. As disclosed previously, Western's board of directors has approved a capital budget for 2025 of $20 million, comprised of $2 million of expansion capital and $18 million of maintenance capital. The 2025 budget includes approximately $3 million of committed expenditures from 2024 that will carry forward into 2025. Western will continue to manage its costs in a disciplined manner and make required adjustments to its capital program as customer demand changes. In the near term, the primary challenges facing the energy services industry include commodity price volatility, the impact of industry consolidation on Western's exploration and production customers and potential customers, and constrained customer drilling activity, as exploration and production companies continue to prioritize shareholder returns through share repurchases, increased dividends, and debt reduction rather than production growth. Should commodity prices stabilize over a sustained period, and as customers further strengthen their balance sheets, an increase in drilling activity may follow. Over the medium term, Western believes its rig fleet is well positioned to benefit from increased drilling and production activity associated with the completion of the LNG Canada project and the Trans Mountain pipeline expansion. In addition, increased focus on domestic energy security and economic independence may support further development activity across the sector. 3 Source: Baker Hughes Company, 2025 Rig Count monthly press releases. 4 Source: CAOEC, monthly Contractor Summary. Non-IFRS Measures and Ratios Western uses certain financial measures in this press release which do not have any standardized meaning as prescribed by International Financial Reporting Standards ("Non-IFRS"). These measures and ratios, which are derived from information reported in the condensed consolidated financial statements, may not be comparable to similar measures presented by other reporting issuers. These measures and ratios have been described and presented in this press release to provide shareholders and potential investors with additional information regarding the Company. The Non-IFRS measures and ratios used in this press release are identified and defined as follows: Adjusted EBITDA and Adjusted EBITDA as a Percentage of Revenue Adjusted earnings before interest and finance costs, taxes, depreciation and amortization, other non-cash items and one-time gains and losses ("Adjusted EBITDA") is a useful Non-IFRS financial measure as it is used by management and other stakeholders, including current and potential investors, to analyze the Company's principal business activities prior to consideration of how Western's activities are financed and the impact of foreign exchange, income taxes and depreciation. Adjusted EBITDA provides an indication of the results generated by the Company's principal operating segments, which assists management in monitoring current and forecasting future operations, as certain non-core items such as interest and finance costs, taxes, depreciation and amortization, and other non-cash items and one-time gains and losses are removed. The closest IFRS measure would be net income (loss) for consolidated results. Adjusted EBITDA as a percentage of revenue is a Non-IFRS financial ratio which is calculated by dividing Adjusted EBITDA by revenue for the relevant period. Adjusted EBITDA as a percentage of revenue is a useful financial measure as it is used by management and other stakeholders, including current and potential investors, to analyze the profitability of the Company's principal operating segments. The following table provides a reconciliation of net loss, as disclosed in the condensed consolidated statements of operations and comprehensive loss, to Adjusted EBITDA: Three months ended June 30 Six months ended June 30 (stated in thousands) 2025 2024 2025 2024 Net loss (4,585) (5,136) (2,199) (3,681) Income tax expense (1,008) (1,621) (566) (1,093) Loss before income taxes (5,593) (6,757) (2,765) (4,774) Add (deduct): Depreciation 10,348 10,075 20,391 20,598 Stock based compensation (238) (161) (1,169) 276 Finance costs 2,286 2,494 4,639 5,150 Other items (950) (392) (1,167) (772) Adjusted EBITDA 5,853 5,259 19,929 20,478 Revenue per Operating Day This Non-IFRS measure is calculated as drilling revenue for both Canada and the US respectively, divided by Operating Days in Canada and the US respectively. This calculation represents the average day rate by country, charged to Western's customers. Revenue per Service Hour This Non-IFRS measure is calculated as well servicing revenue divided by Service Hours. This calculation represents the average hourly rate charged to Western's customers. Defined Terms Drilling rig utilization: Calculated based on Operating Days divided by total available days. Operating Days: Defined as contract drilling days, calculated on a spud to rig release basis. Service Hours: Defined as well servicing hours completed. Service rig utilization: Calculated as total Service Hours divided by 217 hours per month per rig multiplied by the average rig count for the period as defined by the CAOEC industry standard. Working capital: Calculated as current assets less current liabilities as disclosed in the Company's consolidated financial statements. Contract Drilling Rig Classifications Cardium class rig: Defined as any contract drilling rig which has a total hookload less than or equal to 399,999 lbs (or 177,999 daN). Montney class rig: Defined as any contract drilling rig which has a total hookload between 400,000 lbs (or 178,000 daN) and 499,999 lbs (or 221,999 daN). Duvernay class rig: Defined as any contract drilling rig which has a total hookload equal to or greater than 500,000 lbs (or 222,000 daN). Abbreviations Barrel ("bbl"); Canadian Association of Energy Contractors ("CAOEC"); DecaNewton ("daN"); International Financial Reporting Standards ("IFRS"); Pounds ("lbs"); Thousand cubic feet ("mcf"); Western Canadian Sedimentary Basin ("WCSB"); and West Texas Intermediate ("WTI"). Forward-Looking Statements and Information This press release contains certain forward-looking statements and forward-looking information (collectively, "forward-looking information") within the meaning of applicable Canadian securities laws, as well as other information based on Western's current expectations, estimates, projections and assumptions based on information available as of the date hereof. All information and statements contained herein that are not clearly historical in nature constitute forward-looking information, and words and phrases such as "may", "will", "should", "could", "expect", "intend", "anticipate", "believe", "estimate", "plan", "predict", "potential", "continue", or the negative of these terms or other comparable terminology are generally intended to identify forward-looking information. Such information represents the Company's internal projections, estimates or beliefs concerning, among other things, an outlook on the estimated amounts and timing of additions to property and equipment, anticipated future debt levels and revenues or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. This forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. In particular, forward-looking information in this press release includes, but is not limited to, statements relating to: the business of Western; industry, market and economic conditions and any anticipated effects on Western and its customers; commodity pricing; the future demand for the Company's services and equipment; the effect of inflation and commodity prices on energy service activity; expectations with respect to customer spending; the impact of Western's upgraded drilling rigs; the potential continued impact of the current conflicts in Eastern Europe and the Middle East on and other macroeconomic factors on commodity prices; the Company's capital budget for 2025, including the allocation of such budget; Western's plans for managing its capital program; the energy service industry and global economic activity; expectations of increased industry activity with respect to the Trans Mountain pipeline project, the Coastal GasLink pipeline project and the LNG Canada project; the impact of the US tariffs on the approach of Canadian governments towards approval of Canadian energy projects and a focus on domestic energy independence; potential changes in Canadian government policies resulting from the outcome of the 2025 federal election; the Company's ability to benefit from improving service demand and pricing momentum; the Company's ability to continue to focus on deleveraging the business; expectations surrounding the level of investment in Canada and its impact on the Company; challenges facing the energy service industry; the Company's focus on debt reduction; expectations with respect to increased drilling activity; and the Company's ability to maintain a competitive advantage, including the factors and practices anticipated to produce and sustain such advantage. The material assumptions that could cause results or events to differ from current expectations reflected in the forward-looking information in this press release include, but are not limited to: demand levels and pricing for oilfield services; demand for crude oil and natural gas and the price and volatility of crude oil and natural gas; pressures on commodity pricing; the impact of inflation; the continued business relationships between the Company and its significant customers; crude oil transport, pipeline and LNG export facility approval and development; that all required regulatory and environmental approvals can be obtained on the necessary terms and in a timely manner, as required by the Company; liquidity and the Company's ability to finance its operations; the effectiveness of the Company's cost structure and capital budget; the effects of seasonal and weather conditions on operations and facilities; the competitive environment to which the various business segments are, or may be, exposed in all aspects of their business and the Company's competitive position therein; the ability of the Company's various business segments to access equipment; global economic conditions and the accuracy of the Company's market outlook expectations for 2025 and in the future; the impact, direct and indirect, of epidemics, pandemics, other public health crisis and geopolitical events, including the conflicts in Eastern Europe and the Middle East and the import tariffs implemented by the US administration on Western's business, customers, business partners, employees, supply chain, other stakeholders and the overall economy; changes in laws, regulations or policies; currency exchange fluctuations; the ability of the Company to attract and retain skilled labour and qualified management; the ability to retain and attract significant customers; the ability to maintain a satisfactory safety record; that any required commercial agreements can be reached; that there are no unforeseen events preventing the performance of contracts and general business, economic and market conditions. Although Western believes that the expectations and assumptions on which such forward-looking information is based on are reasonable, undue reliance should not be placed on the forward-looking information as Western cannot give any assurance that such will prove to be correct. By its nature, forward-looking information is subject to inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, volatility in market prices for crude oil and natural gas and the effect of this volatility on the demand for oilfield services generally; reduced exploration and development activities by customers and the effect of such reduced activities on Western's services and products; political, industry, market, economic, and environmental conditions in Canada, the US and globally; supply and demand for oilfield services relating to contract drilling, well servicing and oilfield rental equipment services; the proximity, capacity and accessibility of crude oil and natural gas pipelines and processing facilities; liabilities and risks inherent in oil and natural gas operations, including environmental liabilities and risks; changes to laws, regulations and policies; the ongoing geopolitical events in Eastern Europe and the Middle East and the duration and impact thereof; fluctuations in foreign exchange, inflation or interest rates; failure of counterparties to perform or comply with their obligations under contracts; regional competition and the increase in new or upgraded rigs; the Company's ability to attract and retain skilled labour; Western's ability to obtain debt or equity financing and to fund capital operating and other expenditures and obligations; the potential need to issue additional debt or equity and the potential resulting dilution of shareholders; uncertainties in weather and temperature affecting the duration of the service periods and the activities that can be completed; the Company's ability to comply with the covenants under its debt facilities, including the Second Lien Facility, and the restrictions on its operations and activities if it is not compliant with such covenants; Western's ability to protect itself from "cyber-attacks" which could compromise its information systems and critical infrastructure; disruptions to global supply chains; and other general industry, economic, market and business conditions. Readers are cautioned that the foregoing list of risks, uncertainties and assumptions are not exhaustive. Additional information on these and other risk factors that could affect Western's operations and financial results are discussed under the headings " Risk Factors" in Western's annual information form for the year ended December 31, 2024, which is available under the Company's SEDAR+ profile at The forward-looking statements and information contained in this press release are made as of the date hereof and Western does not undertake any obligation to update publicly or revise any forward-looking statements and information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws. Any forward-looking statements contained herein are expressly qualified by this cautionary statement.
Cision Canada
4 days ago
- Business
- Cision Canada
MTL Cannabis Reports Q4 and Record Full Year 2025 Financial Results Driven by $105.2M of Revenue, $21.7M of EBITDA, and $18.2M of Cash Flows from Operations
PICKERING, ON, July 21, 2025 /CNW/ - MTL Cannabis Corp. (CSE: MTLC) (OTCQX: MTLNF) ("MTL" or the "Company") is pleased to report it has filed the annual financial statements for the year ending March 31, 2025. Complete details may be found at Income Statement: Revenue of $105,239,109, an increase of $22,175,221, or 27%, compared to $83,063,888 in the prior year. Gross margin before fair value adjustments of 55%, an increase of 9%, compared to 46% in the prior year. Operating Income of $16,051,858, an increase of $11,439,188, or 248%, compared to $4,612,670 in the prior year. Net Income and Comprehensive Income of $6,826,256, an increase of $4,376,733, or 179%, compared to $2,449,523 in the prior year. EBITDA (1) of $21,722,218, an increase of $12,495,154, or 135%, compared to $9,227,064 in the prior year. Adjusted EBITDA (1) of $20,266,508, an increase of $7,622,341, or 60%, compared to $12,644,167 in the prior year. (1) See "Non-IFRS financial measures" section for reconciliation of EBITDA and Adjusted EBITDA. Statement of Cash Flows: Net cash inflows from operating activities of $18,230,108, an increase of $4,499,228, or 32%, compared to $13,780,880 in the prior year. Net cash used in investing activities of ($5,484,584), an increase of ($3,273,646), compared to ($2,210,938) in the prior year. Net cash used in financing activities of ($8,416,701), a decrease of $2,238,657, compared to ($10,655,358) in the prior year. Overall net cash increased to $5,680,958, an increase of $4,328,823, or 320%, compared to $1,352,135 at the beginning of the fiscal year. Additionally, the company was able to demonstrate retained earnings of $5,705,091, an increase of $6,319,256, or 1029%, compared to an accumulated deficit of ($614,165) in the prior year. Management Commentary: "We've entered a new era at MTL as we move from building the foundation to achieving record-breaking results," said Michael Perron, CEO of MTL. "This achievement reflects the dedication of our people, the strength of our disciplined operating model, and our team's ability to execute at a high level. We have built a strong and scalable platform, and at the core of it all is an unwavering commitment to delivering the highest quality products and services to our patients and customers. I am deeply grateful to the entire MTL team for making that possible." Richard Clement, Chair of the board of directors, commented "I am extremely proud of our team for their focus, determination, and the incredible efforts to help build the company to what it is today. We look forward to continuing to deliver strong results for our customers, patients, and shareholders." Non-IFRS financial measures In addition to results reported in accordance with IFRS, the Company uses certain non-IFRS financial measures as supplemental indicators of its financial and operating performance. These non-IFRS financial measures include Adjusted EBITDA. The Company believes these supplementary financial measures reflect the Company's ongoing business in a manner that allows for meaningful period-to-period comparisons and analysis of trends in its business. The Company defines EBITDA as earnings before interest, taxes, depreciation and amortization. The Company defines Adjusted EBITDA as income (loss) from continuing operations, as reported, adjusted for depreciation and amortization, financing costs, gains and losses on sale of marketable securities, interest and accretion, share-based payments, change in fair value of biological assets realized through inventory sold, and unrealized gains and losses on changes in fair value of biological assets. The Company uses EBITDA as a measure of the cash generating capacity of its business. The Company uses Adjusted EBITDA to assist with comparatives to other companies by eliminating variability resulting from differences in capital structures, management decisions related to resource allocation, and the impact of fair value adjustments on biological assets and inventory, which may be volatile on a period-to-period basis. EBITDA and Adjusted EBITDA should not be considered alternatives to net income (loss), cash flow from operating activities or other measures of financial performance defined under IFRS. EBITDA and Adjusted EBITDA are intended to provide a proxy for the Company's operating cash flow and are widely used by industry analysts and investors to compare the Company to its competitors and derive expectations of the future financial performance of the Company. The Company's method of calculating EBITDA and Adjusted EBITDA may differ from other companies and, accordingly, they may not be comparable to similar measures used by other companies. The table below provide a reconciliation of Net Income as reported under IFRS in the annual financial statements to EBITDA and Adjusted EBITDA for each of the twelve-month periods ended March 31, 2025 and 2024. About MTL Cannabis Corp. MTL Cannabis Corp. is the parent company of Montréal Medical Cannabis Inc. ("MTL Cannabis"), a licensed producer operating from a 57,000 sq. ft. licensed indoor grow facility in Pointe Claire, Québec; Abba Medix Corp., a licensed producer in Pickering, Ontario that operates a leading medical cannabis marketplace; IsoCanMed Inc., a licensed producer in Louiseville, Québec growing best-in-class indoor cannabis, in its 64,000 sq. ft. production facility; and Canada House Clinics Inc., operating clinics across Canada that work directly with primary care teams to provide specialized cannabinoid therapy services to patients suffering from simple and complex medical conditions. As a flower-first company built for the modern street, MTL Cannabis uses proprietary hydroponic growing methodologies supported by handcrafted techniques to produce products that are truly craft for the masses. MTL Cannabis focuses on craft quality cannabis products, including lines of dried flower, pre-rolls and hash marketed under the "MTL Cannabis", "Low Key by MTL" and "R'belle" brands for the Canadian market through nine distribution arrangements with various provincial cannabis distributors. MTL Cannabis has also developed several export channels for bulk and unbranded GACP quality cannabis. It is MTL's goal for Abba Medix Corp. to become the leading distributor of medical cannabis in Canada and for Canada House Clinics to be the leading Canadian provider of medical cannabis clinic services. For further information, please visit or the Company's public filings at Cautionary Statement Regarding Forward-Looking Information. This press release contains forward- looking statements, including statements that relate to, among other things, the Company's clinic, production and technology businesses, its future plans, the Company's markets, objectives, goals, strategies, intentions, beliefs, expectations and estimates, and can generally be identified by the use of words such as "may", "will", "could", "should", "would", "likely", "possible", "expect", "intend", "estimate", "anticipate", "believe", "plan", "objective" and "continue" (or the negative thereof) and words and expressions of similar import. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed on such statements. Certain material factors or assumptions are applied in making forward-looking statements, and actual results may differ materially from those expressed or implied in such statements. Material assumptions used to develop forward-looking information in this news release include, the regulations related to cannabis use under the Cannabis Act (Canada); Company liquidity and capital resources, including the availability of additional capital resources to fund its activities and repay its outstanding indebtedness; level of competition; the ability to adapt products and services to the changing market; the ability to attract and retain key executives; the ability to execute strategic plans; continued integration of business unit, expansion activities at all our operating locations; and the leveraging of cash flow from operations to accelerate growth and further improve the Company's balance sheet. Additional information about material factors that could cause actual results to differ materially from expectations and about material factors or assumptions applied in making forward-looking statements may be found in the Company's Listing Statement dated August 14, 2023 and its most recent annual and interim Management's Discussion and Analysis under "Risk and Uncertainties" as well as in other public disclosure documents filed with Canadian securities regulatory authorities. The Company does not undertake any obligation to update publicly or to revise any of the forward-looking statements contained in this document, whether as a result of new information, future events or otherwise, except as required by law.
Cision Canada
26-06-2025
- Business
- Cision Canada
INTEGRA PROVIDES 2025 GUIDANCE; FOCUSED ON CONSISTENT OPERATIONS AND CAPITAL INVESTMENT AT FLORIDA CANYON AND SIGNIFICANT ADVANCEMENT OF DEVELOPMENT PROJECTS
VANCOUVER, BC, June 26, 2025 /CNW/ - Integra Resources Corp. ("Integra" or the "Company") (TSXV: ITR) (NYSE American: ITRG) is pleased to provide 2025 guidance which contains an outlook for production, operating costs, sustaining and growth capital, and development spending across the Company's portfolio. (All amounts in United States ("U.S.") dollars unless otherwise stated) 2025 Guidance Summary Unit abbreviations: oz = troy ounce, $/oz sold = U.S. dollars per gold ounce sold, $m = million of U.S. dollars 1. Non-IFRS measure. Refer to the "Non-IFRS Measures" section of this news release. 2. Excludes stock-based compensation (non-cash item). George Salamis, President, CEO and Director of Integra commented: "When Integra acquired the Florida Canyon Mine in late 2024, the primary goal was to secure a consistent and reliable source of cash flow that would allow the Company to advance its flagship development stage projects, DeLamar and Nevada North, and remove the need for annual equity financing. Florida Canyon has successfully delivered on this objective. In the current gold price environment Florida Canyon is generating greater than expected cash flow, which has significantly improved the Company's financial position and ability to execute its strategy. As anticipated, Florida Canyon will see significant re-investment during the remaining quarters of 2025 and into 2026, across several ongoing initiatives to support a profitable mining operation for many years to come. The next 18 months represent a capital-intensive phase of the long-term continuous improvement plan for Florida Canyon. Major investments are underway in key areas including a heap leach pad expansion, increased capitalized waste stripping, a revitalized mobile equipment fleet, process optimization, and enhanced mine planning. The goal is to sustain and grow Florida Canyon, extend its mine life, and address historical underinvestment. Integra is laying the foundation for a more efficient, longer-lived operation with an improved cost profile in the years ahead. The Company's ongoing work at Florida Canyon will be incorporated into a new NI 43-101 technical report, expected to be published in the first half of 2026, in which Integra aims to highlight the improvements which can be made to this cornerstone asset. Florida Canyon's ability to generate cash flow has allowed the Company to expedite and bolster initiatives at the DeLamar Project relating to the ongoing feasibility study and permitting efforts – with the expected commencement of federal mine permitting in the second half of 2025. The Company's enhanced financial strength has also allowed for an increased budget for the Nevada North Project to complete crucial test work to support future economic studies and permitting efforts. Integra is well positioned to deliver on its goals of profitability and project advancement while progressing its long-term vision of building a U.S. focused intermediate gold producer." 2025 Production, Cost, and Growth Outlook – Florida Canyon Mine Gold production from the Florida Canyon Mine ("Florida Canyon" or the "Mine") is expected to be 70,000 to 75,000 ounces in 2025. The Company is planning to mine approximately 13.5 million tonnes of ore and 11.2 million tonnes of waste for a total of 24.7 million tonnes, resulting in a strip ratio of 0.83. The increased strip ratio in 2025 is a result of catching up on stripping postponed by previous owners, as well as additional stripping required to access new areas for mining. Cash costs at Florida Canyon are expected to range from $1,800 to $1,900 per ounce of gold sold, including royalties. Integra has numerous ongoing optimization studies at Florida Canyon focused on identifying areas for increased efficiency and cost reduction. Sustaining capital expenditures of $48.0 million to $53.0 million are focused on capitalized waste stripping, mobile fleet rebuild and replacement financing, heap leach pad expansion, and other sustaining items. Sustaining capital expenditure is weighted more heavily toward the third quarter of 2025, with work beginning for the heap leach pad expansion and fleet refurbishment. Approximately 45% of the annual sustaining capital is expected to be deployed in the third quarter of the year, which will result in an elevated mine-site all-in sustaining cost during this period. Mine site all-in sustaining costs at Florida Canyon are expected to range from $2,450 to $2,550 per ounce of gold sold, which reflects the capital-intensive period at Florida Canyon expected in 2025 and 2026. The increase to the mine-site all-in sustaining cost guidance range in 2025 versus actual first quarter costs is primarily a result of timing of sustaining capital expenditures. Growth capital between $8.0 million and $10.0 million at Florida Canyon will be deployed on expansion projects and various studies including drill testing oxide targets, mobile equipment financing to grow the fleet, engineering studies on potential steepening of pit wall slopes, and the possibility of increasing run-of-mine gold mineralized material to the heap leach pad. At Florida Canyon approximately $1.5 million has been allocated to support the 2025 growth drilling program, consisting of ~10,000 meters of reverse circulation drilling focused on near-mine targets designed to support oxide mineral reserve and resource growth and mine life extension. Drilling commenced in early May and is expected to conclude in the third quarter of 2025, with initial assay results expected to be released during the summer months of 2025. The drill program is expected to support a mineral resource and reserve update and a revised life-of-mine plan in 2026. 2025 Development Outlook – The DeLamar Project and the Nevada North Project Integra remains committed to advancing its flagship development-stage heap leach projects: the past producing DeLamar Project ("DeLamar") located in southwestern Idaho and the Nevada North Project ("Nevada North") located in western Nevada. The total expected project development spending in 2025 is $14.5 million to $15.5 million. At DeLamar, efforts in 2025 will be focused on the completion of the feasibility study and permit advancement. A total of $12.0 million to $12.5 million has been allocated to advancing DeLamar in 2025. Approximately 15% of the anticipated budget at DeLamar is allocated to advanced engineering studies that will support the upcoming feasibility study, which is expected to be delivered later in 2025. Approximately 40% of the budget for DeLamar will directly support permitting activities. In March 2025, Integra submitted the Mine Plan of Operations ("MPO") for DeLamar to the United States Bureau of Land Management ("BLM"). The submission of the updated MPO to the BLM initiates the pathway for the issuance of a Notice of Intent ("NOI"), which is a formal announcement of the BLM's intent to prepare an Environmental Impact Statement ("EIS") to evaluate the potential environmental effects of the proposed action in accordance with the National Environmental Policy Act ("NEPA"). Nevada North consists of two mineral exploration deposits, the Wildcat Deposit ("Wildcat") and the Mountain View Deposit ("Mountain View"). At Nevada North, the Company has allocated approximately $2.5 million to $3.0 million to execute several initiatives focused on continued project advancement and de-risking. The Company anticipates completing a metallurgical test work program at Wildcat and commencing a geochemical sampling program designed to assess future development criteria for mineralized oxide material and waste rock in the second half of 2025. Metallurgical and geochemical testing is being completed to support future economic studies and permitting efforts at Nevada North. These initiatives contribute to Integra's long-term growth strategy which involves the de-risking and permitting of its key development stage heap leach projects to build a leading U.S. focused intermediate gold producer. About Integra Resources Integra is a growing precious metals producer in the Great Basin of the Western United States. Integra is focused on demonstrating profitability and operational excellence at its principal operating asset, the Florida Canyon Mine, located in Nevada. In addition, Integra is committed to advancing its flagship development-stage heap leach projects: the past producing DeLamar Project located in southwestern Idaho and the Nevada North Project located in western Nevada. Integra creates sustainable value for shareholders, stakeholders, and local communities through successful mining operations, efficient project development, disciplined capital allocation, and strategic M&A, while upholding the highest industry standards for environmental, social, and governance practices. ON BEHALF OF THE BOARD OF DIRECTORS George Salamis President, CEO and Director Qualified Person The scientific and technical information contained in this news release has been reviewed and approved by Gregory Robinson (P.E., SME Registered Member), Integra's General Manager of the Florida Canyon Mine. Mr. Robinson is a "qualified person" as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101"). Non-IFRS Measures The Company has included certain performance measures in this news release which are not specified, defined, or determined under generally accepted accounting principles (in the Company's case, International Financial Reporting Standards ("IFRS")). These are common performance measures in the gold mining industry, but because they do not have any mandated standardized definitions, they may not be comparable to similar measures presented by other issuers. Accordingly, the Company uses such measures to provide additional information, and you should not consider them in isolation or as a substitute for measures of performance prepared in accordance with generally accepted accounting principles. In this section, all currency figures in tables are in thousands, except per-share and per-ounce amounts. Forward Looking Statements Certain information set forth in this news release contains "forward–looking statements" and "forward–looking information" within the meaning of applicable Canadian securities legislation and in applicable United States securities law (referred to herein as forward–looking statements). Except for statements of historical fact, certain information contained herein constitutes forward–looking statements which includes, but is not limited to, statements with respect to: the Company's 2025 guidance, including production, AISC, expenditures and expenses; plans and expectations for Florida Canyon; expansion and life-of-mine extension plans at Florida Canyon; the timing, content, and purpose of an updated NI 43-101 technical report for Florida Canyon; anticipated assay results and mineral resources and reserves updates for Florida Canyon; feasibility study completion and permitting timelines for the DeLamar Project; test work and permitting plans for the Nevada North Project. Forward-looking statements are often identified by the use of words such as "may", "will", "could", "would", "anticipate", 'believe", "expect", "intend", "potential", "estimate", "budget", "scheduled", "plans", "planned", "forecasts", "goals" and similar expressions. Forward-looking statements are based on a number of factors and assumptions made by management and considered reasonable at the time such statement was made. Forward–looking statements necessarily involve known and unknown risks and uncertainties, which may cause actual performance and financial results in future periods to differ materially from any projections of future performance or result expressed or implied by such forward–looking statements, including but not limited to those risk factors disclosed in Integra's Annual Information Form dated March 26, 2025 for the fiscal year ended December 31, 2024, which is available on the SEDAR+ issuer profile for the Company at and available as Exhibit 99.1 to Integra's Form 40-F, which is available on the EDGAR profile for the Company at Investors are cautioned not to put undue reliance on forward-looking statements. The forward-looking statements contained herein are made as of the date of this news release and, accordingly, are subject to change after such date. The Company disclaims any intent or obligation to update publicly or otherwise revise any forward-looking statements or the foregoing list of assumptions or factors, whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws. Investors are urged to read the Company's filings with Canadian securities regulatory agencies, which can be viewed online under the Company's profile on SEDAR+ at Cautionary Note for U.S. Investors Concerning Mineral Resources and Reserves NI 43-101 is a rule of the Canadian Securities Administrators which establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Technical disclosure contained in this news release has been prepared in accordance with NI 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum Classification System. These standards differ from the requirements of the U.S. Securities and Exchange Commission ("SEC") and resource information contained in this news release may not be comparable to similar information disclosed by domestic United States companies subject to the SEC's reporting and disclosure requirements. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. SOURCE Integra Resources Corp.
