Scout Drilling Results Extend Polymetallic Mineralization Footprints at Chita; Exploration Identifies Compelling Regional Targets
The active scout drilling program is also testing other compelling regional targets generated from ground-based exploration surveys. The robust exploration program employs detailed mapping in conjunction with rock sampling, Pole Dipole IP surveys and grid soil geochemistry.
Summary of the drilling results is shown in Table 1 below and drillhole locations are shown in Maps 1 and 2.
KEY DRILL RESULTS HIGHLIGHTS:
At Chinchillones surrounds, the drillholes completed include CHDH25-150, CHDH25-151, CHDH25-152 which tested and confirmed the southwest continuity of the NE-trending, 2.0km-long and 0.9km-wide polymetallic zone. This zone hosts the High Zinc resource base portion of the Chinchillones polymetallic deposit (see 43-101 Technical report Mineral Resource Estimate for Chita valley Project dated January 17, 2025).
The High Zinc polymetallic resource, forming an important component to the overall Chinchillones deposit, has been reported to contain at both indicated and inferred categories of 41 Mt (0.72% Zn, 17.6 g/t Ag, 0.13 g/t Au and 0.18% Cu) and 79 Mt (0.79% Zn, 16.5 g/t Ag, 0.10 g/t Au and 0.21% Cu), respectively.
At CHDH25-151 (150°azimuth and 65°dip; total depth of 500.8m), mineralization from 152m to 320m is dominantly hosted in silicified sandstones (quartzites from Agua Negra Formation) and dacitic breccias. The sulfides, consisting of pyrite, sphalerite, tennantite occur as disseminations and in quartz veins. Mineralization is accompanied by pervasive kaolinite-illite-fine-grained clays.
At CHDH25-152 (135°azimuth and 60°dip;total depth of 600m), the discrete polymetallic veins yielded high-grade values of up to 756 g/t Ag, 1.08 g/t Au, 4.5% Zn, and 2.75% Pb (2m-interval sample from 70m), implying increasing silver endowment to the southwest, which is still largely untested by drilling and outside of the open-pit limit design. Host rocks include dacitic lithologies with associated hydrothermal breccias intruded into silicified quartzites.
Drillholes CHDH25-153 and CHDH25-154 were drilled 240m NE of the last fence of drillholes included in the maiden Chinchillones resource estimate.
Drillhole CHDH25-153 (150°azimuth and 65°dip; total depth of 492.6m) intersected mainly andesitic rocks and early diorite porphyry cut by intermediate sulfidation quartz-rhodochrosite veins with pyrite-sphalerite-chalcopyrite-galena-tennantite. Increased vein densities were observed in the intervals 180-210m and 300-330m.
Drillhole CHDH25-154 (320°azimuth and 60°dip; total depth of 510m) intersected lithologies similar to CHDH25-153 dominated by fine-grained andesitic rocks. Mineralization occurs as pervasive disseminations, as cavity-infill, as veins and linear vein breccias and along fractures. Veins contain rhodochrosite, sphalerite, galena, tennantite and chalcopyrite. Vein density increased at 100-120m, and 200-220m. Advanced argillic alteration consisting of secondary silica-pyrophyllite-kaolinite and pyrite generally accompanies the mineralization.
Thus, the polymetallic zone is demonstrably open to the SW and NE directions.
At PSU (Chita Porphyry South) Surrounds, drillhole PSUDH25-155 is the first of the planned drillholes focused on expanding and in-filling the supergene-enriched, open-pittable PSU historical resource base (indicated resource category of 33Mt @0.43% Cu, 180 ppm Mo, 0.07 g/t Au and 2.28 g/t Ag and inferred category of 8.6Mt@ 0.4% Cu, 160 ppm Mo, 0.07 g/t Au and 1.73 g/t Ag (from NI 43-101 Technical report and Updated Mineral Resource Estimate on the Chita Valley Project, San Juan, 2018).
Drillhole PSUDH25-155 (315° azimuth and 60° dip; total depth of 321m), which is 120m outside of the projected 0.25% Cu isosurface derived from the historical resource estimation, intersected oxidised and argillic-altered dioritic porphyry (kaolinite-clays-illite) with abundant quartz-sulfides veining. Pyrite and chalcopyrite are replaced by chalcocite-digenite below the oxide zone at 53m. Quartz-molybdenite-chalcopyrite-pyrite veinlets become common from 124m.
Thus, the 32m @ 0.34% Cu and 58 ppm Mo within a wider interval of 120m @ 0.21% Cu and 77 ppm Mo from 22m demonstrated that the resource base of the supergene-enriched, open-pittable PSU deposit has the potential to be substantially expanded and upgraded.
Drillhole PSUDH25-156 (315°azimuth and 60°dip; total depth of 261m) intersected highly oxidised (jarosite-goethite) diorite porphyry to 53m and at depth, transitional to a sulfidic zone hosting porphyry-related veinlets (quartz-pyrite-chalcopyrite-molybdenite; B- and D-type veins) with the sulfides replaced by chalcocite and digenite. At 142m, the dioritic porphyry body is traversed by quartz stockworked zone of white mica-quartz-pyrite-chalcopyrite-molybdenite altered dacitic intrusion.
Drillhole PSUDH-157 (315°azimuth and60°dip; total depth of 252m) intersected dioritic porphyry from 3m characterised by a mixed zone of iron oxides (jarosite-goethite-hematite) with preserved sulfidic veins hosting pyrite-chalcopyrite and molybdenite. From 45m, the chalcocite-digenite replacement of sulfides become apparent. At depth from 98m through to 252m (end of hole) the lithologies become multi-phased with dacitic, andesitic and dioritic intrusion phases hosting copper sulfides.
Drillhole PSUDH-158 (135°azimuth and 60°dip; total depth of 314.2m) confirmed the extension of the higher-grade molybdenum zone (>200 ppm Mo) hosted in diorite porphyry and affected by supergene chalcocite-digenite in the mixed oxide-sulfide zone commencing from 25m through to 84m below surface. Thence through to the end of the drillhole, the dioritic host rocks exhibit phyllic (white mica-quartz-pyrite) overprint over potassic (secondary biotite-K-feldspar-magnetite) hosting quartz-molybdenite-chalcopyrite stockworked quartz veining (B-type porphyry-related veinlets).
The total iron mapped from Landsat 8 imageries (see Map 2 below) demonstrates coherent available total iron over PSU and extends farther south for at least 1.7 kilometres along strike. This significant total iron footprint is also coincident with structurally perturbed area, along the hanging wall to the NS-trending thrust fault, providing ideal environment for the development and transport of acidic fluids required for the dissolution and enrichment (vertical or lateral transport) of copper-bearing sulfides in the weathered profile. Interestingly, the high total Fe also affected the older Permian granitoids immediately to the east.
Table 1: Scout Diamond Drilling Program – Summary of Significant Results
(1) The true thicknesses are unknown
REGIONAL TARGETING HIGHLIGHTS
Extensive geological, geophysical and geochemical synthesis confirms highly prospective >>6km-long, >2.0km-wide, ENE- to NE-trending polymetallic Miocene-aged corridor (Map 3)
The detailed mapping at the Placetas area confirmed the presence of coeval dioritic and dacitic lithologies, similar to the host rocks hosting the Chinchillones polymetallic deposit. At Chinchillones, the high sulfidation mineralization, polymetallic intermediate sulfidation veins, linear breccias and porphyry-related B-, A-, C-type veins are apparently controlled by NE-, EW-trending faults occurring in a NE-trending, 2.0km-long and 0.9km-wide elongated polymetallic zone. These controlling structures, considered as potentially fluid and magma pathways, are also present at the Placetas area.
At Placetas Central, compelling drill-ready targets (Map 4)
The results from the grid soil survey (206 samples;100m interval grid) highlights coherent coincident, at least 1km-long, 0.5km-wide Cu-Mo-Au anomalies. Importantly these multi-element anomalies coincide with an ENE-trending faulted zone separating the dioritic rocks in the NW with the dacitic rocks in the SE. This setting is highly reminiscent to the controls at the Chinchillones polymetallic deposit
There is a significant fault-controlled EW-trending magnetite-destructive elongated "doughnut" coincident with a mapped dioritic porphyry intrusion, emplaced amongst an older, bigger dioritic body. This mapped younger body is interpreted to represent a protruded dyke coming off a younger, productive intrusion at depth.
At PSU Surrounds, valid targets to test continuity of Cu-Mo-Au mineralization and the presence of other intrusion centres (Maps 5 and 6)
The compiled surface geochemistry, magnetic-depleted zones and mapping around the PSU area indicate the southern area to the PSU requires drill-testing. The under-tested southern continuation of the supergene-enriched PSU (Porphyry Chita Sur) Cu-Mo-Au deposit measures 1.7km x 1.4km which can host substantial deposit/s.
The total iron mapped from Landsat 8 imageries demonstrates coherent available total iron over the PSU surrounds and extends farther south for more than one kilometre.
NEXT STEPS:
Completion of the planned 5400m PSU expansion drilling
A planned US$7.3 million budget from July 2025-June 2026 will include these exploratory activities:
an MT survey over 13,5kms x 8.0kms area encompassing all the principal target areas
testing of the compelling drill-worthy targets at Placetas Central and PSU south prospect areas
expanded soil and rock geochemical survey, in conjunction with detailed mapping of the Chinchillones-Placetas corridor
Identification of targets based on the thorough integration of the results from geology-geochemical and geophysical surveys
COMMENT
Mr Ramiro Massa, Director at Minsud Resources, commented: "These latest exploration results further validate the scale and strategic significance of the Chinchillones–Placetas corridor. With multiple mineralized centres and substantial untested extensions, we believe this emerging district holds significant potential for the delineation of multiple mineralized systems. Together with South32, we remain fully committed to systematically advancing exploration and unlocking long-term value from this high-quality asset located in one of Argentina's most mining-friendly jurisdictions".
Quality Assurance/Quality Control
All core samples were cut and prepared on-site at the project area. The sample lengths were usually 2 m, except in areas with low recovery (loss areas, faults, etc.) and breaks from discrete principal geological features (e.g., vein, vein breccia). Drill core sizes of the drillholes included in this report: CHDH25-150 (HQ to 490.8m;NQ to 675m); CHDH25-151 (all HQ to 500m); CHDH25-152 (all HQ to 501m; NQ to 600m); CHDH25-153 (all HQ to 492.6m); CHDH25-154 (all HQ to 510m); PSUDH25-155 (all HQ to 321m); PSUDH25-156 (all HQ to 261m); PSUDH25-157 (all HQ to 252m); and PSUDH25-158 (all HQ to 314.2m).
Cutting was carried out by trained MSA personnel. Cores were split using the industry-standard Corewise automatic circular diamond blade rotary saw in the middle of the core, around 1 cm away from the core orientation mark. Half-core and duplicate samples, including all fragments, were placed in labelled plastic bags. Each had the sample number and was sealed using plastic security straps.
All core samples were submitted to the ALS Patagonia S.A. in Mendoza as the primary laboratory for sample preparation. This ISO 9001 accredited facility, with the prepared pulp samples sent to ALS Perú S.A. in Lima, Peru. The ALS Perú S.A. laboratory is accredited under ISO 9001:2008 and ISO 17025, ensuring compliance with international standards.
The analytical protocols are outlined as follows:
ME-MS61 and ME-MS61m: Multitrace analysis of 48 elements with a 4-acid digestion. A prepared sample (0.25 g) is digested with perchloric, nitric, and hydrofluoric acids to dryness. The residue is taken up in a volume of 12.5 mL of 10 % hydrochloric acid. The resulting solution is analyzed by ICP-AES. Results are corrected for spectral interelement interference.
ME-OG62: For samples over-limit, analysis is with four acid digestion using conventional ICPAES analysis for Ag, As, Cu, Mo, S, Pb, and Zn.
Fire Assay Procedure Au-AA24 (50g): Gold is analyzed using a conventional fire assay fusion method with Atomic Absorption Spectroscopy (AAS).
Minsud followed industry standard procedures for the work with a quality assurance/quality control (QA/QC) program. Field duplicates, standards and blanks were included with all sample shipments to the principal laboratory. Minsud detected no significant QA/QC issues during review of the data.
Qualified Person (QP) Statement
The scientific and technical information in this press release has been compiled, reviewed and approved by Dr Renato Bobis, MAusIMM CP (Geo), part-time VP-Exploration of the Company, and is a qualified person as defined by Canadian National Instrument 43-101.Dr Bobis has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Qualified Person.
About the Chita Valley Project, San Juan Province
The Chita Valley Project is a large exploration stage porphyry system with widespread porphyry style Cu-Mo-Au and polymetallic Ag-Pb-Zn mineralization hosted in multi-phased intrusions and country rocks with affiliated hydrothermal breccias. San Juan Province of Argentina has a robust mining sector and recognizes the important economic benefits of responsible development of its substantial mineral resource endowment. The Chita Valley Project is owned and managed by MSA, of which Minsud indirectly holds a 49.9% interest. The other 50.1% interest in MSA is owned by a wholly owned subsidiary of South32 Limited ("South32"). Minsud and South32 entered into a shareholders' agreement to govern the management and operation of MSA which will include further exploration.
About Minsud Resources Corp.
Minsud is a mineral exploration company focused on exploring its flagship Chita Valley Cu-Mo- Au-Ag-Pb-Zn Project, in the Province of San Juan, Argentina. The Company's shares are listed on the TSX-V under the trading symbol "MSR", and on the OTCQX under the symbol "MDSQF".
About South32 Limited
South32 Limited ("South32") is a globally diversified mining and metals company. The company's purpose is to make a difference by developing natural resources, improving people's lives now and for generations to come, and to be trusted by its owners and partners to realise the potential of their resources. South32 produces minerals and metals critical to the world's energy transition from operations across the Americas, Australia and Southern Africa and is discovering and responsibly developing its next generation of mines. South32 aspires to leave a positive legacy and build meaningful relationships with partners and communities to create brighter futures together.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION:
This news release includes certain information that may constitute forward-looking information under applicable Canadian securities laws. Forward-looking information includes, but is not limited to, statements about strategic plans, spending commitments, future operations, results of exploration, anticipated financial results, future work programs, capital expenditures and objectives. Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information including, but not limited to: fluctuations in the currency markets (such as the Canadian dollar, Argentina peso, and the U.S. dollar); changes in national and local government, legislation, taxation, controls, regulations and political or economic developments in Canada and Argentina or other countries in which the Corporation may carry on business in the future; operating or technical difficulties in connection with exploration and development activities; risks and hazards associated with the business of mineral exploration and development (including environmental hazards or industrial accidents); risks relating to the credit worthiness or financial condition of suppliers and other parties with whom the Company does business; presence of laws and regulations that may impose restrictions on mining, including those currently enacted in Argentina; employee relations; relationships with and claims by local communities; availability and increasing costs associated with operational inputs and labour; the speculative nature of mineral exploration and development, including the risks of obtaining necessary licenses, permits and approvals from government authorities; business opportunities that may be presented to, or pursued by, the Company; challenges to, or difficulty in maintaining, the Company's title to properties; risks relating to the Company's ability to raise funds; and the factors identified under "Risk Factors" in the Company's Filing Statement dated April 27, 2011. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this news release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
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 Minsud Resources Corp.
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We use gross margin to measure operating profitability on the revenue that accrues to the Company after making advisor payments that are directly linked to revenue. 8. Operating expenses include employee compensation and benefits; selling, general, and administrative expenses; and any transformation costs and other provisions (none since Q2 2023). 9. Commencing Q1 2025, we updated our free cash flow available for growth and free cash flow calculations. Prior period amounts have been revised to conform with the change. For further information, please see the "Non-GAAP and Supplementary Financial Measures" section of this release. Non-GAAP and Supplementary Financial Measures In addition to GAAP prescribed measures, we use a variety of non-GAAP financial measures, non-GAAP ratios and SFMs to assess our performance. We use these non-GAAP financial measures and SFMs because we believe that they provide useful information to investors regarding our performance and results of operations. Readers are cautioned that non-GAAP financial measures, including non-GAAP ratios, and SFMs often do not have any standardized meaning and, therefore, may not be comparable to similar measures presented by other issuers. Non-GAAP measures are reported in addition to, and should not be considered alternatives to, measures of performance according to IFRS. Adjusted Results Some of our non-GAAP financial measures (including non-GAAP ratios) reflect adjusted results. In periods that we determine adjusting items have a significant impact on a user's assessment of ongoing business performance, we may present adjusted results in addition to reported results by removing these items from the reported results. Management considers the adjusting items to be outside of our core operating performance. We believe that adjusted results can enhance comparability across reporting periods and provide the reader with a better understanding of how management views core performance. Adjusted results are also intended to provide the user with results that have greater consistency and comparability to those of other issuers. All adjusting items affect reported expenses. Adjusting items in this release include the following: Transformation costs and other provisions: charges in connection with the transformation of our business and other matters. These charges encompass a range of transformation initiatives, including refining our ongoing operating model, outsourcing our carrying broker operations, realigning parts of our real estate footprint, and rolling out new strategy across the Company. There have been no transformation costs recorded since Q2 2023. Amortization of acquired intangibles: amortization of intangible assets created on the acquisition of Richardson Wealth. The following items are not included as adjusting items in this release: Balance sheet revaluation adjustments such as mark-to-market adjustments on our share-based compensation (RSUs and DSUs) and FX translation Costs related to our 2024 leadership transition Other one-time expenses or recoveries that we consider to be normal course of business, unless otherwise specified Non-GAAP Financial Measures A non-GAAP financial measure is a financial measure used to depict our historical or expected future financial performance, financial position or cash flow and, with respect to its composition, either excludes an amount that is included in, or includes an amount that is excluded from, the composition of the most directly comparable financial measure disclosed in our 2024 Annual Financial Statements. A non-GAAP ratio is a financial measure disclosed in the form of a ratio, fraction, percentage, or similar representation and that has a non-GAAP financial measure as one or more of its components. The primary non-GAAP financial measures (including non-GAAP ratios) used in this document are: EBITDA EBITDA is commonly used in the wealth management industry. We believe it provides a more accurate measure of our core operating results and is a commonly used basis for enterprise valuation. EBITDA is used to evaluate core operating performance by adjusting net income/(loss) to exclude: Interest expense, which we record primarily in connection with debt Income tax expense/(recovery) Amortization and depreciation which we record in connection with leases, equipment, and leasehold improvements Amortization related to intangible assets Amortization in connection with investment advisor transition and loan programs. We view these loans as an effective recruiting and retention tool for advisors, the cost of which is assessed by management upfront when the loan is provided rather than over its term. Adjusted EBITDA is defined as EBITDA excluding adjusting items. Adjusted EBITDA margin is a non-GAAP ratio defined as adjusted EBITDA as a percentage of revenue. The table in the "Quarterly Non-GAAP Information" section below reconciles our reported net income/(loss) to EBITDA and adjusted EBITDA. Operating Expenses Operating expenses are defined as total reported expenses less interest, advisor award and loan amortization, amortization and depreciation of premises and equipment, and amortization of intangibles. These are the expenses that factor into the EBITDA calculation discussed above. Operating expense ratio is a non-GAAP ratio defined as operating expenses divided by gross margin. Adjusted operating expenses are defined as operating expenses less adjusting items. Adjusted operating expense ratio is a non-GAAP ratio defined as adjusted operating expenses divided by gross margin. The table in the "Quarterly Non-GAAP Information" section below reconciles our reported total expenses to operating expenses and adjusted operating expenses. Adjusted Net Income Adjusted net income is defined as net income/(loss) from continuing operations less adjusting items. The table in the "Quarterly Non-GAAP Information" section below reconciles our reported net income/(loss) to adjusted net income/(loss). Commissionable Revenue Commissionable revenue includes fee revenue, trading commissions, commission revenue earned in connection with the placement of new issues, and revenue earned on the sale of insurance products. We use commissionable revenue to evaluate advisor compensation paid on that revenue. Net Working Capital Net working capital represents the excess capital available to deploy in operations or growth and is comprised of current assets less current liabilities. We use net working capital to manage our liquidity as well as evaluate the efficiency of our operations. Net working capital is widely used across the wealth management industry and beyond to assess the financial health of entities and associated risks. Current assets include the non-client portion of cash and cash equivalents, securities owned by the Company, the non-client portion of net receivable from brokers, the current portion of employee loans and other receivables, and other assets. Current liabilities include accounts payable and accrued liabilities, the current portion of provisions, and the current portion of lease liabilities. The table in the "Quarterly Non-GAAP Information" section below provides our net working capital calculation. Free Cash Flow Commencing Q1 2025, we updated our free cash flow available for growth and free cash flow calculations to consider cash impacts of non-cash operating items and RF Capital preferred share dividends. Comparative periods have been revised to conform with the current period presentation. Free cash flow available for growth is the cash flow the Company generates from its continuing operations before any investments in growth or transformation initiatives. We use this metric to evaluate the efficiency of our operations and assess the capital available to reinvest in growth activities. It is calculated as cash provided by/(used in) operating activities per the Consolidated Statement of Cash Flows plus adjusting items and net outlays to attract new advisors to the firm, less lease payments, RF Capital preferred share dividends, and maintenance capital expenditures. Free cash flow is the net cash flow that the Company generates from its continuing operations after investments in growth and transformation initiatives. We use free cash flow to evaluate the efficiency of our growth initiatives and assess the capital available after investments in growth. It is calculated as free cash flow available for growth less net outlays to attract new advisors to the firm, capital expenditures on growth initiatives, and adjusting items. The table in the "Quarterly Non-GAAP Information" section below reconciles our reported cash provided by/(used in) operating activities to free cash flow for growth and free cash flow. Supplementary Financial Measures An SFM is a financial measure that is not reported in our financial statements, and is, or is intended to be, reported periodically to represent historical or expected future financial performance, financial position, or cash flows. The Company's key SFMs disclosed in this release include AUA, average AUA per team, recruited assets, and asset yield. Management uses these measures to assess the operational performance of the Company. These measures do not have any definition prescribed under IFRS and do not meet the definition of a non-GAAP measure or non-GAAP ratio and may differ from the methods used by other companies and, therefore, these measures may not be comparable to other companies. The composition and explanation of an SFM is provided in this release where the measure is first disclosed if the SFM's labeling is not sufficiently descriptive. The following table presents select quarterly non-GAAP financial information for our eight most recently completed financial quarters. 2025 2024 2023 ($ thousands, except as otherwise indicated) Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 EBITDA: Net income/(loss) from continuing operations - reported (2,109) (4,112) 1,290 (2,309) 2,714 (1,127) (2,882) (189) Income tax expense/(recovery) 179 811 1,804 1,751 (252) 1,190 713 2,281 Income/(loss) before income taxes - reported (1,930) (3,301) 3,094 (558) 2,462 63 (2,169) 2,092 Interest 3,191 3,322 3,649 3,725 3,413 3,750 3,994 3,527 Advisor award and loan amortization 3,022 3,125 3,211 3,103 2,909 3,161 5,844 4,457 Amortization and depreciation of premises and equipment 2,770 2,694 2,677 2,660 2,749 3,049 3,385 3,414 Amortization of intangibles 3,626 3,626 3,607 3,563 3,537 3,516 3,464 3,442 EBITDA 10,679 9,466 16,238 12,493 15,070 13,539 14,518 16,932 Operating expenses: Total expenses - reported 51,269 58,718 51,979 52,246 51,104 52,705 53,055 49,732 Interest 3,191 3,322 3,649 3,725 3,413 3,750 3,994 3,527 Advisor award and loan amortization 3,022 3,125 3,211 3,103 2,909 3,161 5,844 4,457 Amortization and depreciation of premises and equipment 2,770 2,694 2,677 2,660 2,749 3,049 3,385 3,414 Amortization of intangibles 3,626 3,626 3,607 3,563 3,537 3,516 3,464 3,442 Operating expenses 38,660 45,951 38,835 39,195 38,496 39,229 36,368 34,892 Adjusted net income: Net income/(loss) from continuing operations - reported (2,109) (4,112) 1,290 (2,309) 2,714 (1,127) (2,882) (189) After-tax adjusting items: Transformation costs and other provisions - - - - - - - - Amortization of acquired intangibles 2,398 2,398 2,398 2,398 2,398 2,398 2,399 2,398 Adjusted net income/(loss) 289 (1,714) 3,688 89 5,112 1,271 (483) 2,209 Net income/(loss) per common share from continuing operations: Basic (0.21) (0.33) 0.01 (0.22) 0.11 (0.14) (0.26) (0.10) Diluted (0.21) (0.33) 0.01 (0.22) 0.10 (0.14) (0.26) (0.10) Adjusted net income/(loss) per common share: Basic (0.05) (0.18) 0.17 (0.06) 0.26 0.01 (0.10) 0.09 Diluted (0.05) (0.18) 0.17 (0.06) 0.26 0.01 (0.10) 0.07 Cash flow: Cash provided by/(used in) operating activities 5,517 5,401 14,442 15,977 5,162 (11,826) 2,836 16,624 Add/(less): Advisor loans net of repayments 199 1,820 1,270 6,290 7,088 2,249 13,224 557 Capital expenditures - maintenance (644) (1,995) (1,004) (790) (901) (419) (797) (348) Lease payments (2,174) (2,172) (2,169) (2,196) (2,257) (2,266) (2,041) (2,044) Preferred share dividends (1,073) (1,073) (1,073) (1,073) (1,073) (1,073) (1,073) (1,073) Free cash flow available for growth 1,825 1,981 11,466 18,208 8,019 (13,335) 12,149 13,716 Advisor loans net of repayments (199) (1,820) (1,270) (6,290) (7,088) (2,249) (13,224) (557) Capital expenditures - growth (net of lease inducements) (1,854) (1,969) (465) (115) 928 (82) 936 225 Free cash flow (228) (1,808) 9,731 11,803 1,859 (15,666) (139) 13,384 As at As at June 30, March 31, Increase/ December 31, Increase/ ($ thousands, except as otherwise indicated) 2025 2025 (decrease) 2024 (decrease) Net working capital: Current assets: Cash and cash equivalents (non-client portion) 86,520 86,748 (0 %) 88,556 (2 %) Securities owned 854 820 4 % 1,593 (46 %) Net receivable from brokers (non-client portion) 59,209 60,034 (1 %) 61,125 (3 %) Employee and other loans receivable (current portion) 1,035 1,113 (7 %) 1,244 (17 %) Other assets 17,840 15,156 18 % 14,758 21 % Current liabilities: Accounts payable and accrued liabilities 58,154 60,500 (4 %) 60,261 (3 %) Provisions (current portion) 12,364 12,030 3 % 13,587 (9 %) Lease liabilities (current portion) 5,021 4,676 7 % 4,699 7 % Net working capital 89,919 86,665 4 % 88,729 1 % YTD Non-GAAP Information The following table presents select year-to-date non-GAAP financial information for the current and prior fiscal years. For the six months ended June 30, June 30, ($ thousands, except as otherwise indicated) 2025 $ 2024 EBITDA: Net income/(loss) from continuing operations - reported (6,221) 1,587 Income tax expense/(recovery) 990 938 Income/(loss) before income taxes - reported (5,231) 2,525 Interest 6,512 7,163 Advisor award and loan amortization 6,147 6,070 Amortization and depreciation of premises and equipment 5,464 5,798 Amortization of intangibles 7,252 7,053 EBITDA 20,144 28,609 Operating expenses: Total expenses - reported 109,987 103,809 Interest 6,512 7,163 Advisor award and loan amortization 6,147 6,070 Amortization and depreciation of premises and equipment 5,464 5,798 Amortization of intangibles 7,252 7,053 Operating expenses 84,612 77,725 Adjusted net income: Net income/(loss) from continuing operations - reported (6,221) 1,587 After-tax adjusting items: Transformation costs and other provisions - - Amortization of acquired intangibles 4,796 4,796 Adjusted net income/(loss) (1,425) 6,383 Net income/(loss) per common share from continuing operations: Basic (0.54) (0.04) Diluted (0.54) (0.04) Adjusted net income/(loss) per common share: Basic (0.23) 0.27 Diluted (0.23) 0.27 Cash flow: Cash provided by/(used in) operating activities 10,918 (6,664) Add/(less): Advisor loans net of repayments 2,019 9,337 Capital expenditures - maintenance (2,640) (1,320) Lease payments (4,345) (4,523) Preferred share dividends (2,146) (2,146) Free cash flow available for growth 3,806 (5,316) Advisor loans net of repayments (2,019) (9,337) Capital expenditures - growth (net of lease inducements) (3,823) 846 Free cash flow (2,036) (13,807) About RF Capital Group Inc. RF Capital Group Inc. is a TSX-listed (TSX: RCG) wealth management-focused company. Operating under the Richardson Wealth brand, the Company is one of the largest independent wealth management firms in Canada with $40.4 billion in assets under administration (as of June 30, 2025) and 23 offices across the country. The firm's Advisor teams are focused exclusively on providing strategic wealth advice and innovative investment solutions customized for high net worth or ultra-high net worth families and entrepreneurs. The Company is committed to maintaining exceptional fiduciary standards and has earned certification – determined annually – from the Centre for Fiduciary Excellence for its Separately Managed and Portfolio Management Account platforms. For the seventh year in a row, Richardson Wealth has been certified as a "great place to work" by Great Place to Work®, a global authority on workplace culture. To learn more about the Company, please visit and to view our 2024 annual report and our latest recruiting brochure. SOURCE RF Capital Group Inc.
Toronto Star
38 minutes ago
- Toronto Star
Altai Announces Filing of Meeting Materials for Special Meeting of Shareholders
TORONTO, July 31, 2025 (GLOBE NEWSWIRE) — Altai Resources Inc. (TSXV: ATI) ('Altai' or the 'Company') announced today that it has filed a management information circular (the 'Circular') and related meeting materials (together with the Circular, the 'Meeting Materials') in connection with a special meeting (the 'Meeting') of shareholders of the Company (the 'Shareholders') to be held on September 3, 2025 to consider and, if deemed advisable, approve, with or without variation, a special resolution authorizing and approving a reduction of the stated capital account of the common shares of the Company (the 'Common Shares') by an aggregate amount to be determined by the board of directors of the Company from time to time up to a maximum cumulative total amount of $4,000,000 pursuant to Section 34(1)(b) of the Business Corporations Act (Ontario) for the purposes of distributing such amount to holders of Common Shares by way of a return of capital in one or more special cash distribution(s), all as more particularly described in the Circular. Shareholders are encouraged to read the Meeting Materials, which have been filed on SEDAR+ and can be viewed at under the Company's profile. The Meeting Materials will be mailed in due course to the Shareholders entitled to vote at the Meeting.
Cision Canada
38 minutes ago
- Cision Canada
Canfor reports results for the second quarter of 2025.
VANCOUVER, BC, /CNW/ - Canfor Corporation ("the Company" or "Canfor") (TSX: CFP) today reported its second quarter of 2025 results: Overview. Q2 2025 operating loss of $251 million, shareholder net loss of $203 million, or $1.71 per share. After taking into consideration adjusting items 1 of $201 million, Q2 2025 operating loss of $51 million, compared to a similarly adjusted operating loss of $32 million in Q1 2025. Solid earnings from Europe; North American operations impacted by sustained weakness in lumber benchmark pricing. Persistent weak market conditions in the US South led to the announcement of the permanent closure of the Company's Estill and Darlington sawmills, and, as a result, an asset write-down and impairment charge of $189 million and restructuring costs of $7 million in the lumber segment. Rising global economic uncertainty put downward pressure on global pulp market fundamentals, particularly in China, and on North American kraft paper markets; global pulp producer inventories climbed to well above the balanced range. The Canadian dollar strengthened by 3 cents, or 4%, versus the US-dollar quarter-over-quarter, weakening revenues. Vida AB announced agreement to purchase AB Karl Hedin Sågverk ("Hedin") for $164 million, including approximately $39 million of working capital, which will add 230 million board feet to Vida's annual capacity. Financial results. The following table summarizes selected financial information for the Company for the comparative periods: (millions of Canadian dollars, except per share amounts) Q2 2025 Q1 2025 YTD 2025 Q2 2024 YTD 2024 Sales $ 1,379.4 $ 1,417.5 $ 2,796.9 $ 1,381.5 $ 2,764.2 Reported operating income (loss) before amortization, asset write-downs and impairments $ 39.6 $ 72.6 $ 112.2 $ (98.3) $ (78.5) Reported operating loss $ (251.4) $ (28.5) $ (279.9) $ (250.8) $ (336.6) Adjusted operating income (loss) before amortization, asset write-downs and impairments 1 $ 51.7 $ 68.9 $ 120.6 $ (46.9) $ (57.3) Adjusted operating loss 1 $ (50.7) $ (32.2) $ (82.9) $ (167.8) $ (283.8) Net loss 2 $ (202.8) $ (31.0) $ (233.8) $ (191.1) $ (255.6) Net loss per share, basic and diluted 2 $ (1.71) $ (0.26) $ (1.97) $ (1.61) $ (2.15) Adjusted net loss 1, 2 $ (67.0) $ (38.1) $ (105.1) $ (168.7) $ (220.8) Adjusted net loss per share, basic and diluted 1, 2 $ (0.56) $ (0.32) $ (0.88) $ (1.42) $ (1.86) 1. Adjusted results referenced throughout this news release are defined as non-IFRS financial measures. For further details, refer to the "Non-IFRS financial measures" section of this document. 2. Attributable to equity shareholders of the Company. The Company reported an operating loss of $251.4 million for the second quarter of 2025, compared to an operating loss of $28.5 million in the first quarter of 2025. After accounting for adjusting items totaling $200.7 million, consisting of an inventory write-down as well as an asset write-down and impairment charge, the Company's operating loss was $50.7 million for the current quarter. This compares to a similarly adjusted operating loss of $32.2 million in the prior quarter. These results reflect a decline in results for both the lumber and pulp and paper segments. Commenting on the Company's second quarter results, Canfor's President and Chief Executive Officer, Susan Yurkovich, stated: "While our European operations produced solid earnings this quarter, the North American market continued to experience significant challenges reflecting the impact of sluggish demand and a persistent weak pricing environment. During the second quarter, we made the difficult decision to permanently close our Estill and Darlington sawmills in South Carolina following an extended period of sustained financial losses. With punitive US softwood lumber duties combining with ongoing global economic and trade uncertainty, we remain focused on what we can control and will continue to leverage our globally diversified operating platform to combat these headwinds." "For our pulp business" Yurkovich added, "our second quarter results were impacted by trade policy uncertainty between China and the US, which slowed pulp purchasing activity and gave rise to climbing pulp producer inventory levels and a declining US-dollar pulp pricing environment. We anticipate that these challenging conditions will persist well into the third quarter. Consistent with our approach in the lumber business, we are maintaining our focus on safety, reliability, productivity and disciplined cost management." Second quarter lumber segment highlights. For the lumber segment, the operating loss was $229.2 million for the second quarter of 2025, compared to the previous quarter's operating loss of $25.5 million. These results include adjusting items consisting of an asset write-down and impairment charge of $188.6 million and an inventory write-down of $9.2 million. After taking into consideration these adjusting items, the lumber segment operating loss in the second quarter of 2025 was $31.4 million, compared to a similarly adjusted operating loss of $29.2 million in the prior quarter. These results reflect another period of solid earnings from the Company's European operations, largely tied to improved market pricing in that region and a 6% weaker Canadian dollar versus the Swedish Krona ("SEK"), tempered somewhat by log cost escalation in Europe. However, these earnings were overshadowed by challenging results from the Company's North American operations, primarily associated with ongoing weakness in North American lumber benchmark pricing. In June 2025, the Company announced its decision to permanently close its Darlington and Estill sawmills in South Carolina, effective August 2025. The closures follow an extended period of persistently weak market conditions and sustained financial losses. As a result of this announcement, the Company recognized an asset write-down and impairment charge of $188.6 million, as well as restructuring costs of $6.7 million, during the second quarter of 2025. North American housing markets experienced a moderate decline through the second quarter of 2025. Ongoing affordability concerns, combined with general economic and political uncertainty, especially relating to potential US tariffs, continued to dampen demand and slow market activity. These factors led to an increase in housing supply and a reduction in new home construction as well as repair and remodel activity, all of which exerted downward pressure on most North American lumber benchmark prices compared to the previous quarter. In Japan, lumber demand and pricing strengthened as the second quarter progressed, driven largely by an increase in building activity in the current period following a surge in homebuying in the previous quarter ahead of building code changes. In contrast, lumber demand and prices in China remained under pressure throughout most of the second quarter, primarily due to elevated inventory levels in the region. European lumber demand continued to face downward pressure through the second quarter of 2025, principally reflecting affordability challenges and muted consumer sentiment. However, some pressure on lumber inventory supply in the region led to a slight uplift in pricing quarter-over-quarter. On July 22, 2025, the Company announced that its 77%-owned subsidiary, Vida AB, had entered into an agreement with Mattsbo Såg AB and certain minority shareholders to acquire AB Karl Hedin Sågverk ("Hedin") for a purchase price of $164 million (SEK 1.15 billion), which includes approximately $39 million in working capital. Hedin operates three sawmills in Central Sweden and specializes in the production of dimensional and specialty wood products. This acquisition is projected to increase Vida's annual production capacity by 230 million board feet, resulting in a total estimated capacity of 2.1 billion board feet following completion. The transaction is anticipated to close later in 2025, subject to customary closing conditions. On July 25, 2025, the US Department of Commerce announced a final anti-dumping duty ("ADD") rate of 35.56% for the Company for the sixth period of review ("POR6"). When taking into consideration the preliminary countervailing duty ("CVD") rate of 11.87% for POR6 that was announced earlier in 2025, the total combined rate for POR6 is 47.43%. Upon finalization of both CVD and ADD for POR6 (anticipated in early August 2025), the Company anticipates recognizing an estimated expense of $88.3 million (US$64.6 million) in its interim consolidated financial statements for the third quarter of 2025. Lumber segment outlook. Looking ahead, North American lumber demand is anticipated to remain relatively weak through the third quarter of 2025. Ongoing uncertainty, affordability challenges as well as constrained consumer confidence and tariff-related concerns are projected to continue to weigh on near term demand and put downward pressure on prices early in the third quarter. However, a gradual price improvement is forecast later in the third quarter, particularly for Western SPF, as producers look to recover the higher duties that come into effect in August 2025. In addition to the pre-existing CVD and ADD impacts on the Company, Canfor continues to monitor the trade situation between Canada and the US. With a diversified global operating platform, the Company is positioned to mitigate some of these costs, however, potential tariffs do present challenges for the Company's operations. As a result, the Company continues to focus on strengthening domestic markets and its presence in non-US markets. In offshore markets, Japan is anticipated to experience a modest decrease in lumber prices through the third quarter of 2025, as the housing construction backlog eases. China lumber markets are anticipated to remain depressed. In Europe, lumber markets are projected to see further pricing pressure in the third quarter of 2025, as persistent affordability challenges and cautious consumer behaviours are anticipated to keep demand muted. In addition, with lumber inventories being redirected from the Middle East North Africa region into the UK market, it is projected that ample lumber supply will keep prices in that region relatively subdued. Second quarter pulp and paper segment highlights. For the pulp and paper segment, the operating loss was $5.3 million for the second quarter of 2025, compared to operating income of $10.8 million for the first quarter of 2025. After adjusting for a $2.9 million inventory write-down in the current period, Canfor Pulp Product Inc.'s ("CPPI") operating loss was $2.4 million for the second quarter of 2025. These results were largely driven by a decline in both CPPI's average Northern Bleached Softwood Kraft ("NBSK") pulp and paper unit sales realizations in the current quarter and, to a lesser extent, an uplift in pulp unit manufacturing costs. Global softwood pulp markets experienced downward pressure throughout the second quarter of 2025, primarily driven by weak demand from China, largely tied to the impact of new trade policies between China and the US, as well as general global economic uncertainty. As a result, US-dollar NBSK list prices to China, the world's largest pulp consumer, started the quarter at a high of US$798 per tonne, before declining steadily throughout the period, ending June at US$690 per tonne. For the current quarter overall, US-dollar NBSK pulp list prices to China averaged US$734 per tonne, down US$59 per tonne, or 7%, from the prior quarter. As a result of weak demand, global softwood pulp producer inventories climbed significantly through the second quarter of 2025 to well above the balanced range, ending May at 46 days of supply, an increase of 8 days compared to March 2025. Market conditions are generally considered balanced when inventories are in the 32-43 days of supply range. Pulp and paper segment outlook. Looking forward, global softwood kraft pulp market conditions are anticipated to remain weak throughout the third quarter of 2025 as purchasing activity, particularly from China, is forecast to be soft through the traditionally slower summer period, despite the announcement of market curtailments from some Nordic pulp producers. As a result, global pulp producer inventories are forecast to remain well above the balanced range through the third quarter of 2025. CPPI continues to actively monitor developments in the trade relationship between Canada and the United States. In the event that tariffs are imposed on US pulp and paper shipments, CPPI has mitigation strategies intended to largely offset potential impacts. A minor scheduled maintenance outage will take place during the third quarter of 2025 at CPPI's Intercontinental NBSK pulp mill and at its paper machine. This maintenance outage is projected to reduce both NBSK market pulp production and paper production by 2,000 tonnes each. Additional information and conference call. A conference call to discuss the second quarter's financial and operating results will be held on Friday, August 1, 2025, at 9:00 AM Pacific time. To participate in the call, please dial Toll-Free 1-888-510-2154. For instant replay access until August 15, 2025, please dial Toll-Free 1-888-660-6345 and enter participant pass code 18122#. The conference call will be webcast live and will be available at This news release, the attached financial statements and a presentation used during the conference call can be accessed via the Company's website at Non-IFRS financial measures. Throughout this press release, reference is made to certain non-IFRS financial measures which are used to evaluate the Company's performance but are not generally accepted under IFRS and may not be directly comparable with similarly titled measures used by other companies. The following table provides a reconciliation of these non-IFRS financial measures to figures reported in the Company's condensed consolidated interim financial statements: Forward-looking statements. Certain statements in this press release constitute "forward-looking statements" which involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results, performance or achievements expressed or implied by such statements. Words such as "expects", "anticipates", "projects", "intends", "plans", "will", "believes", "seeks", "estimates", "should", "may", "could", and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are based on Management's current expectations and beliefs and actual events or results may differ materially. There are many factors that could cause such actual events or results expressed or implied by such forward-looking statements to differ materially from any future results expressed or implied by such statements. Forward-looking statements are based on current expectations and Canfor assumes no obligation to update such information to reflect later events or developments, except as required by law. About Canfor Corporation. Canfor is a global leader in the manufacturing of high-value low-carbon forest products including dimension and specialty lumber, engineered wood products, pulp and paper, wood pellets and green energy. Proudly headquartered in Vancouver, British Columbia, Canfor produces renewable products from sustainably managed forests, at more than 50 facilities across its diversified operating platform in Canada, the United States and Europe. The Company has a 77% stake in Vida AB, Sweden's largest privately owned sawmill company and also owns a 54.8% interest in Canfor Pulp Products Inc. Canfor shares are traded on The Toronto Stock Exchange under the symbol CFP. For more information visit
