Trilogy Metals Surges 243.1% YTD: Should Investors Ride the Rally?

Trilogy Metals Inc. TMQ shares have surged 243.1% in the year-to-date period, outpacing the industry and the S&P 500, which have returned 23.8% and 16%, respectively. In comparison, the company’s peers like B2Gold Corp. BTG and Barrick Mining Corporation B have gained 63.5% and 138.4%, respectively, over the same time frame.TMQ Outperforms Industry & S&P 500Image Source: Zacks Investment ResearchClosing at $3.98 in the last trading session, the stock is trading significantly below its 52-week high of $11.29 but higher than its 52-week low of $0.09. The stock is trading below its 50-day and above 200-day moving averages.TMQ Stock’s 50-Day & 200-Day Moving Averages Image Source: Zacks Investment ResearchAlthough Trilogy Metals continues to face recurring net losses and negative operating cash flows due to its non-producing, exploration-stage status, its strong partnership with South32 is expected to drive its long-term performance.TMQ’s Long-Run Prospects Look BrightTrilogy Metals continue to make steady progress at the Ambler mining district. Although the company is in the pre-production exploration stage, it is taking a step ahead with Ambler Metals LLC, which is a joint venture with South32 Limited.In July 2025, Ambler Metals completed its summer field program at the Bornite camp safely and on schedule, which included routine site maintenance, environmental baseline data collection, annual biomonitoring with the Alaska Department of Fish and Game as well as weather and water station maintenance with Boreal Environmental Services. The company also began a multi-year core re-boxing program to protect drill core for long-term future use. These important steps keep the Arctic and Bornite projects ready for a potential development decision.TMQ has also been maintaining disciplined spending. For the first nine months of fiscal 2025 (ended August 2025), Ambler Metals recorded approximately $3.8 million in costs tied to these ongoing programs. However, Trilogy Metals’ share of the loss was approximately $2.2 million in the same period. This shows that the company is advancing the project while still controlling its development burn rate.However, the major issue plaguing TMQ is its inability to generate positive cash inflows. The company’s operating cash outflow totaled $2.7 million in the first nine months of fiscal 2025.Also, despite the steady operational progress, Trilogy Metals remains highly dependent on future permitting and infrastructure approvals, particularly related to the Ambler Access Project, and there is no certainty that the necessary approvals will be granted, which could delay or limit any future development plans.TMQ also operates in the mineral exploration and mining markets, which include major industry players like B2Gold and Barrick Mining.TMQ’s Estimate RevisionsImage Source: Zacks Investment ResearchThe Zacks Consensus Estimate for TMQ’s bottom line for fiscal 2025 (ending November 2025) has remained steady in the past 60 days.ValuationFrom a valuation standpoint, Trilogy Metals is trading at a forward price-to-earnings ratio of negative 194.21X against the industry’s average of 16.09X. In comparison, B2Gold and Barrick Mining are trading at 5.22X and 11.78X, respectively.Image Source: Zacks Investment ResearchConclusionDespite near term challenges like negative cash outflows, the continued advancement of the Ambler mining district positions Trilogy Metals for the possibility of a significant transformation in the future. With its steady progress and controlled spending, TMQ appears well-positioned for long-term growth, creating an attractive opportunity for potential investors to bet on this Zacks Rank #2 (Buy) company. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Barrick Mining Corporation (B): Free Stock Analysis Report B2Gold Corp (BTG): Free Stock Analysis Report Trilogy Metals Inc. (TMQ): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks