Year ending December 31, 2025 - MD&A

Extracted Document Text

This is a readable excerpt of the EGM normalized Markdown text. It helps search engines and researchers understand PDF, filing, or company-document content while the original source remains authoritative.

# Year ending December 31, 2025 - MD&A

Source: https://www.ithmines.com/_resources/financials/annual-reports/2025/ITH-MDA-FY2025.pdf?v=091207
Fetched: 2026-09-12T07:03:49.231+00:00
Source artifact: 7cc3c1ab-6d31-4e30-b209-6c1c9477a201
Normalizer input: text

## Content

# Year ending December 31, 2025 - MD&A
INTERNATIONAL TOWER HILL MINES LTD.
For the annual period ended December 31, 2025
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Current Business Activities
General
ITH is a company engaged in the acquisition and development of mineral properties. The Company currently holds a
100% interest in a development stage project in Alaska referred to as the “Livengood Gold Project” or the “Project”.
The Company has not yet begun extraction of mineralization from the deposit or reached commercial production. As
of December 31, 2025, the Livengood Gold Project has (i) proven and probable reserves of 430.1 million tonnes at an
average grade of 0.65 g/tonne (9.0 million ounces) based on a gold price of $1,680 per ounce and (ii) a measured and
indicated mineral resource, exclusive of mineral reserves, of 274.51 million tonnes at an average grade of 0.52 g/tonne
(4.62 million ounces), based on a gold price of $1,650 per ounce, in each case as reported in the Technical Report
Summary (the “TRS”) attached as Exhibit 96.1 to the 2022 Annual Report on Form 10-K/A filed with the SEC on
October 17, 2023. A more complete description of the Livengood Gold Project, including detailed presentation of
resources and reserves, is set forth in Part I, Item 2. Properties of this Annual Report on Form 10-K.
Livengood Gold Project Technical Report Summary
The TRS details a project that would process 65,000 tons per day and produce 6.4 million ounces of gold over 21
years from a gold reserve estimated at 9.0 million ounces at 0.65 g/tonne. The study utilized a third-party review by
Whittle Consulting and BBA Inc. to integrate new interpretations based on an expanded geological database, improved
geological modelling, new resource estimation methodology, an optimized mine plan and production schedule,
additional detailed metallurgical work at various gold grades and grind sizes, changes in the target grind for the mill,
new engineering estimates, and updated cost inputs, all of which significantly de-risk the Project. The TRS has
estimated the capital costs of the Project at $1.93 billion, the total cost per ton milled at $13.12, the all-in sustaining
costs at $1,171 per ounce, and net present value (5%) at $1,800/oz of $400 million.
The Project configuration evaluated in the TRS is a conventional, owner-operated surface mine that would utilize
large-scale mining equipment in a blast/load/haul operation. Mill feed would be processed in a 65,000 tons per day
comminution circuit consisting of primary and secondary crushing, wet grinding in a single semi-autogenous (“SAG”)
mill and single ball mill followed by a gravity gold circuit and a conventional carbon in leach (“CIL”) circuit.
Whittle Enterprise Optimization
Prior to beginning the Pre-feasibility Study (“PFS”) for the Livengood Gold Project which is summarized in the TRS,
the Company retained Whittle Engineering and BBA Inc. to collaborate on an enterprise optimization study (the
“Whittle and BBA Study”) to review various technologies and project configurations and to recommend the optimum
configuration for the PFS. The Whittle and BBA Study reviewed secondary crushing with SAG and ball mill, tertiary
crushing with ball mill, gravity/CIL at p80 of 90 micron to 250 micron, stand-alone and auxiliary heap leach
configurations, gravity only gold recovery, gravity/flotation with pressure oxidation and CIL of flotation concentrate.
These configurations were evaluated at various combinations of project ramp up strategy, annual throughput, primary,
secondary, and tertiary grind size, as well as mining fleet size and stockpile management strategies. Tailings
technologies reviewed included conventional tailings and pressure filtered tailings.
The Whittle and BBA Study determined that the gravity/CIL plant at p80 250 micron with conventional tailings
provided the highest net present value, which is the configuration detailed in the PFS.
The TRS was prepared by independent third-party consultants.
The Company cautions that the TRS is preliminary in nature and is based on technical and economic assumptions
1
which will be further refined and evaluated in a full feasibility study. The TRS is based on an updated Project mineral
resource estimate effective as of August 20, 2021.
The Company has determined that the mineral resource estimate of August 20, 2021 remains current as of December
31, 2025.
2026 Highlights and Outlook
On January 27, 2026, the Company completed a public offering of 33,672,000 common shares, at an issue price to the
public of $2.22 per share, for aggregate gross proceeds, before deducting underwriting discounts and offering
expenses, of approximately $74.8 million. Concurrent with the public offering, the Company completed a private
placement of 19,520,000 common shares to affiliates of Paulson & Co. Inc. (“Paulson”), at the same issue price, for
aggregate proceeds of approximately $43.3 million. The private placement was completed in two tranches, with
18,018,018 issued to Paulson on January 27, 2026 and an additional 1,501,982 common shares issued to Paulson on
January 29, 2026 to reflect an upsizing in the size of the $60 million public offering initially announced by the
Company on January 22, 2026.
The Company expects to use the net proceeds of the public offering and private placement to fund the exploration and
development of the Livengood Gold Project, including drilling, metallurgical studies, feasibility studies, technical
studies, baseline environmental studies, detailed engineering in support of permitting, permitting, legal support,
community engagement, mineral lease and land payments, acquisitions, and general corporate purposes.
For 2026, the Company plans to advance metallurgical studies evaluating whether antimony might be recoverable
from the massive stibnite veins contained within the deposit, select and engage the technical team to begin the
feasibility study, conduct drilling to obtain fresh core for metallurgical test work in support of the feasibility study, as
well as conducting community engagement and advancing the baseline environmental data collection in support of
the feasibility study and future permitting.
Results of Operations
Summary of Quarterly Results
Description December 31, September 30, June 30, March 31,
2025 2025 2025 2025
Net loss $ (1,311,876) $ (732,303) $ (1,925,086) $ (669,068)
Basic and diluted net loss per
common share $ (0.01) $ (0.00) $ (0.01) $ (0.00)
Description December 31, September 30, June 30, March 31,
2024 2024 2024 2024
Net loss $ (954,847) $ (667,302) $ (1,431,915) $ (545,308)
Basic and diluted net loss per
common share $ (0.01) $ (0.00) $ (0.01) $ (0.00)
Significant fluctuations in the Company’s quarterly net losses have mainly been the result of operating cost changes.
Year Ended December 31, 2025 compared to Year Ended December 31, 2024
The Company had cash and cash equivalents of $1,353,333 at December 31, 2025 compared to $992,487 at December
31, 2024. The Company incurred a net loss of $4,638,333 for the year ended December 31, 2025 compared to a net
loss of $3,599,372 for the year ended December 31, 2024. The following discussion highlights certain selected
financial information and changes in operations between the year ended December 31, 2025 and the year ended
December 31, 2024.
2
Share-based payment charges were $697,774 during the year ended December 31, 2025 compared to $613,690 during
the year ended December 31, 2024. The $84,084 increase in share-based payment charges during the year was mainly
the result of equity compensation issued or granted to certain contractors of the Company during the year ended
December 31, 2025 as compared to the year ended December 31, 2024. The Company granted 332,000 deferred share
units (“DSUs”) at an issue price of C$1.25 per DSU and 240,000 incentive stock options at an issue price of C$1.25
per option during the year ended December 31, 2025 compared to 441,490 DSUs at an issue price of C$0.94 per DSU,
240,000 incentive stock options at an issue price of C$0.94 per option, and 2,500,000 incentive stock options at an
issue price of C$0.64 per option during the year ended December 31, 2024. All DSUs granted in each of these years
were fully vested upon issuance. All options granted on June 4, 2025 and May 29, 2024 vest one-third on the grant
date, one-third on the first anniversary, and one-third on the second anniversary. Of the 2,500,000 options granted on
December 2, 2024, 1,000,000 options vested immediately on the grant date, 500,000 were cancelled on June 2, 2025
when certain market conditions were not met, and the remaining 1,000,000 vested on December 2, 2025, when certain
market conditions were met. At December 31, 2025, there was C$88,963 of unrecognized compensation expense
related to unvested options outstanding.
Share-based payment charges were allocated as follows:
Year Ended Year Ended
December 31, December 31,
Expense category: 2025 2024
Consulting $ 574,499 $ 519,249
Investor relations 8,218 6,296
Wages and benefits 115,057 88,145
$ 697,774 $ 613,690
Mineral property expenditures were $1,596,798 and $1,211,751 for the years ended December 31, 2025 and 2024,
respectively. The increase of $385,047 is primarily due to increased project-related legal costs for an increase of
$115,445, metallurgical study costs for an increase of $111,871, higher advance minimum royalty payment for an
increase of $80,455, and increased field supplies and services for an increase of $77,276.
Excluding share-based payment charges of $574,499 and $519,249 for the years ended December 31, 2025 and 2024,
respectively, consulting fees increased to $382,212 for the year ended December 31, 2025 from $232,896 for the year
ended December 31, 2024. The increase of $149,316 is primarily due to increased services.
Professional services were $374,099 and $241,059 for the years ended December 31, 2025 and 2024, respectively.
The increase of $133,040 is primarily due to increased corporate legal costs of $136,363 partially offset by lower
accounting services for a decrease of $3,323.
Excluding share-based payment charges of $115,057 and $88,145 for the years ended December 31, 2025 and 2024,
respectively, wages and benefits increased to $881,515 for the year ended December 31, 2025 from $869,664 for the
year ended December 31, 2024. The increase of $11,851 is primarily due to higher labor and labor-related benefits
$6,128 and higher year-end payroll and vacation accruals of $5,723.
Travel costs were $42,193 for the year ended December 31, 2025 compared to $33,516 for the year ended December
31, 2024. The increase of $8,677 is primarily due to increased travel requirements.
Insurance costs were $162,275 for the year ended December 31, 2025 compared to $204,677 for the year ended
December 31, 2024. The decrease of $42,402 is primarily due to premium savings as a result of an agent change.
Excluding share-based payments, all other operating expense categories reflected only moderate changes period over
period.
Other items amounted to other loss of $109,584 during the year ended December 31, 2025 compared to other income
of $190,322 during the year ended December 31, 2024. The Company had a foreign exchange loss of $183,339 during
the year ended December 31, 2025 compared to a foreign exchange gain of $106,386 during the year ended December
31, 2024 as a result of the impact of exchange rates on certain of the Company’s U.S. dollar cash balances. The average
3
exchange rate during the year ended December 31, 2025 was C$1 to $0.7157 compared to C$1 to $0.7302 for the year
ended December 31, 2024.
Liquidity and

[Excerpt trimmed for readability. Open the original source for the complete filing or document.]