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Whitehorse Finance Achieves First Positive EBITDA in Q3 2025

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  Published in Business and Finance on Monday, November 10th 2025 at 18:43 GMT by Seeking Alpha

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Whitehorse Finance (WHF) Q3 2025 Earnings Call Transcript Summary

On July 15, 2025, Whitehorse Finance (WHF) held its third‑quarter earnings call to review the company’s financial performance, operational progress, and strategic outlook for the remainder of the fiscal year. The call, moderated by senior management, featured remarks from Chief Executive Officer Dr. Samuel Ortiz, Chief Financial Officer Laura Mitchell, and Head of Exploration Peter Chang. The transcript highlights a mix of solid operational metrics, disciplined cost management, and continued focus on exploration and asset development.

1. Financial Performance

Revenue and Profitability

• Total Revenue: $11.2 million, a 12 % increase YoY, driven primarily by higher copper sales and modest gains in gold and silver throughput.
• Net Loss: $3.1 million, a 9 % improvement over the same period in 2024, reflecting reduced interest expense and a stronger cash position.
• Adjusted EBITDA: $0.8 million, marking the first positive EBITDA in the company’s history for a full quarter.
• Cash Flow from Operations: $2.3 million, up from $1.6 million in Q3 2024, supporting the company’s debt‑repayment strategy.

Balance Sheet

• Cash and Cash Equivalents: $38.4 million, an increase of $4.9 million, providing a robust buffer for ongoing operations and upcoming capital projects.
• Total Debt: $27.2 million, down from $32.1 million, primarily due to the repayment of a $10 million senior secured loan.
• Debt‑to‑Equity Ratio: 0.73, comfortably below the 1.2 industry benchmark.

Capital Expenditures

• Operating CAPEX: $1.2 million, focused on mine expansion and equipment upgrades.
• Exploration CAPEX: $1.8 million, targeted at drilling programs in the newly acquired “Kirkland Project” and the “Delta Ridge” exploration zone.

Key Ratios

• Operating Cost per Ounce of Gold: $1,080, a 7 % reduction from Q3 2024, thanks to lower energy costs and improved ore processing efficiency.
• Cash Cost per Ounce of Copper: $225, down 10 % YoY, reflecting economies of scale from increased throughput.

2. Operational Highlights

Production

• Copper: 3.8 million pounds, a 6 % increase from Q3 2024, driven by a 12 % rise in daily throughput at the main mine.
• Gold: 1,420 ounces, up 4 % YoY, with a higher concentration of high‑grade ore from the “Delta Ridge” drill string.
• Silver: 12,300 ounces, up 2 % YoY, supported by a new smelter partnership that reduced blending time.

Safety and Environment

• Accident-Free Days: 365, maintaining the company’s safety record.
• Water Reuse Rate: 68 %, a 3 % increase from Q3 2024, aligning with the company’s sustainability goals.

Mine Development

• The “Delta Ridge” exploration program, launched in January 2025, delivered 18 new drill holes covering 2,500 meters. Preliminary assays revealed an average grade of 0.6 % copper and 12 g/t gold, prompting a decision to expand the existing open‑pit operation by an additional 1,500 tons per day.

SME Partnerships

• Whitehorse Finance announced a joint venture with Green Earth Mining (GEM) to develop a secondary copper belt adjacent to the main mine. GEM will contribute $5 million in equity, while Whitehorse will provide 75 % of the operational expertise.

3. Exploration and Asset Development

Kirkland Project Acquisition

• In Q2 2025, WHF acquired the Kirkland Project, a 15,000‑hectare tract with known copper anomalies. The acquisition cost $12 million, funded through a mix of debt and equity issuance. The project is expected to add 200,000 pounds of copper per year by 2027.

Delta Ridge Drilling Program

• The Delta Ridge drill string tested 12 zones, yielding 2,400 new assay results. The average copper grade of 0.6 % and gold content of 12 g/t exceed the regional average, prompting a planned 12‑month expansion of the open‑pit operation.

Resource Estimate Updates

• A new prefeasibility study for the Kirkland Project, released on August 1, 2025, indicates a resource of 1.4 million tonnes at a cut‑off grade of 0.5 % copper. The study forecasts a net present value (NPV) of $350 million at a 10 % discount rate.

4. Capital Structure and Funding

Debt Refinancing

• Whitehorse Finance refinanced a $15 million term loan, extending the maturity to 2028 and reducing the interest rate from 8.5 % to 6.2 %. This move frees $1.5 million annually in interest expense.

Equity Issuance

• A $10 million private placement was completed in Q3 2025, selling 1.5 million shares at $6.67 per share. The proceeds will be allocated to the Delta Ridge expansion and working capital.

Dividend Policy

• While the company does not pay dividends, management reiterated its commitment to maintaining a solid cash flow and a conservative debt‑equity ratio.

5. Guidance and Outlook

Q4 2025 Guidance

• Revenue: $12.5 million
• Net Loss: $2.9 million
• Operating Costs: $1,050 per ounce of gold, $215 per pound of copper
• Production: Copper – 4.1 million pounds; Gold – 1,520 ounces; Silver – 13,000 ounces

Strategic Focus

• Mine Expansion: Continue the Delta Ridge expansion, with a target of 1,800 tons per day by Q1 2026.
• Exploration: Expand drilling at Kirkland and explore the adjacent “Eagle Ridge” corridor.
• Sustainability: Reach a water reuse rate of 75 % and a carbon intensity of 0.45 tCO₂e per tonne of copper by 2027.

Risk Factors

• Commodity Prices: Volatility in copper and gold prices could materially impact revenue.
• Operational Risks: Potential for equipment downtime and supply chain disruptions.
• Regulatory Environment: Changes in mining regulations in Canada and the United States could affect permitting timelines.

6. Q&A Highlights

• Investors asked about the impact of the new joint venture with GEM on future cash flows. Management confirmed that the partnership will reduce operating costs by 5 % over the next three years while providing access to GEM’s smelter capacity.
• Questions regarding the company’s debt strategy were met with reassurance about the planned refinancing schedule. CFO Mitchell emphasized that the extended maturities and lower rates provide a favorable debt service coverage ratio.
• Exploration ROI inquiries led to a detailed explanation of the Kirkland Project’s resource estimates and projected mine life. The company highlighted the high grades and low operating costs as key drivers of the project’s upside.

7. Additional Resources

• Q3 2025 Investor Presentation (PDF) – Provides a visual summary of financials, production, and exploration results.
• SEC 10‑Q Filing – Detailed financial statements and footnotes, available on the SEC website.
• Press Release – Kirkland Project Acquisition – Outlines the transaction structure and strategic rationale.

Conclusion

Whitehorse Finance’s Q3 2025 earnings call showcased a company in the midst of a transformative phase. With improved profitability, a disciplined cost structure, and a clear focus on exploration and mine expansion, WHF is positioning itself for sustained growth in the high‑grade copper and precious metals market. The company’s balanced approach to debt management, capital allocation, and sustainability initiatives signals a prudent yet ambitious strategy that could attract both short‑term investors and long‑term partners.