For the three months ended September 30, 2026 and 2025 (Expressed in United States Dollars)
Unaudited Condensed Consolidated Interim Statements of Financial Position(Expressed in US dollars) | |||
Notes | September 30, 2026 | June 30, 2026 | |
ASSETS Current Assets Cash and cash equivalents | 12 | $ 36,922,547 | $ 38,565,329 |
Receivables | 96,155 | 81,208 | |
Deposits and prepayments | 516,608 | 243,330 | |
37,535,310 | 38,889,867 | ||
Non-current Assets | |||
Property, plant and equipment | 4 | 960,009 | 936,947 |
Mineral property interests | 5 | 122,065,430 | 120,675,217 |
TOTAL ASSETS | $ 160,560,749 | $ 160,502,031 | |
LIABILITIES AND EQUITY Current Liabilities Accounts payabl e and accrued liabi lities | 6 | $ 1,373,022 | $ 936,142 |
Due to a related party | 7 | 223,290 | 189,655 |
1,596,312 | 1,125,797 | ||
Total Liabilities | 1,596,312 | 1,125,797 | |
Equity Share capital | 8 | 216,306,428 | 215,380,495 |
Share-based payment reserve | 19,419,615 | 19,454,623 | |
Accumulated other comprehensive income | 7,248,541 | 7,133,554 | |
Deficit | (84,010,147) | (82,592,438) | |
Total Equity | 158,964,437 | 159,376,234 | |
TOTAL LIABILITIES AND EQUITY | $ 160,560,749 | $ 160,502,031 | |
Approved on behalf of the Board: | |||
(Signed) Maria Tang Director | |||
(Signed) Jalen Yuan CEO | |||
See accompanying notes to the unaudited condensed consolidated interim financial statements.
Unaudited Condensed Consolidated Interim Statements of Loss (Expressed in US dollars)Three months ended September 30,
Notes | 2026 | 2025 | |
Operating expense | |||
Project evaluation and corporate development | $ (1,829) | $ (14,619) | |
Depreciation | 4 | (31,154) | (47,090) |
Filing and listing | (105,573) | (74,745) | |
Corporate affairs and investor relations | (123,732) | (94,174) | |
Professional fees | (69,559) | (92,981) | |
Salaries and benefits | (449,718) | (432,582) | |
Office and administration | (257,263) | (235,815) | |
Share-based compensation | 8(b) | (403,290) | (324,826) |
Total operating expense | (1,442,118) | (1,316,832) | |
Other income | |||
Income from investments | 3 | $ 316,590 | $ 114,051 |
Gain on disposal of property, pl ant and equipment | 4 | 1,570 | - |
Foreign exchange (loss) gain | (293,751) | 457,144 | |
Total other income | 24,409 | 571,195 | |
Net loss | $ (1,417,709) | $ (745,637) | |
Loss per share - basic and diluted | $ (0.01) | $ (0.00) | |
Weighted average number of common shares - basic and diluted | 185,390,831 | 172,047,125 | |
See accompanying notes to the unaudited condensed consolidated interim financial statements.
Unaudited Condensed Consolidated Interim Statements of Comprehensive Loss (Expressed in US dollars)Three months ended September 30,
Notes | 2026 | 2025 | |
Net loss Other comprehensive income(loss), net of taxes: Items that may subsequently be reclassified to net loss: Currency translation adjustment, net of tax of $nil | $ (1,417,709) 114,987 | $ (745,637) (644,640) | |
Other comprehensive income (loss), net of taxes | $ 114,987 | $ (644,640) | |
Total comprehensive loss, net of taxes | $ (1,302,722) | $ (1,390,277) |
See accompanying notes to the unaudited condensed consolidated interim financial statements.
Unaudited Condensed Consolidated Interim Statements of Cash Flows (Expressed in US dollars)Three months ended September 30,
Notes | 2026 | 2025 | |
Operating activities Net loss | $ (1,417,709) | $ (745,637) | |
Add (deduct) items not affecting cash: Income from investments | 3 | (316,590) | (114,051) |
Depreciation | 4 | 31,154 | 47,090 |
Gain on disposal of property, plant and equipment | 4 | (1,570) | - |
Share-based compensation | 8(b) | 403,290 | 324,826 |
Foreign exchange loss (gain) | 293,751 | (457,144) | |
Changes in non-cash operating working capital | 12 | 380,387 | 172,017 |
Interest received | 3 | 316,590 | 100,673 |
Net cash used in operating activities | (310,697) | (672,226) | |
Investing activities Mineral property interest Capital expenditures | (1,381,110) | (703,850) | |
Property, plant and equipment | |||
Additions | 4 | (56,797) | - |
Proceeds on disposals | 4 | 6,154 | - |
Net cash used in investing activities | (1,431,753) | (703,850) | |
Financing activities Proceeds from issuance of common shares for option exercised | 306,943 | 92,409 | |
Net cash provided by financing activities | 306,943 | 92,409 | |
Effect of exchange rate changes on cash | (207,275) | 159,825 | |
Decrease in cash and cash equivalents | (1,642,782) | (1,123,842) | |
Cash and cash equivalents, beginning of the period | 38,565,329 | 16,839,959 | |
Cash and cash equivalents, end of the period | $ 36,922,547 | $ 15,716,117 | |
Supplementary cash flow information | 12 | ||
See accompanying notes to the unaudited condensed consolidated interim financial statements.
New Pacific Metals Corp. Unaudited Condensed Consolidated Interim Statements of Change in Equity(Expressed in US dollars) | |||||||||
Share ca | pital | ||||||||
Total equity | |||||||||
Number of | Share-based | Accumulated other | attributable to the | Non- | |||||
common | payment | comprehensive | equity holders of | controlling | |||||
Notes | shares issued | Amount | reserve | income (loss) | Deficit | the Company | interests | Total equity | |
Balance, July 1, 2025 | 171,904,301 $ | 183,315,257 | $ 20,676,968 | $ 8,697,745 | $ (78,402,069) | $ 134,287,901 | $ - | $ 134,287,901 | |
Options exercised | 65,222 | 128,896 | (36,487) | - | - | 92,409 | - | 92,409 | |
Restricted share units vested | 317,682 | 578,541 | (578,541) | - | - | - | - | - | |
Share-based compensation | 325,786 | - | - | 325,786 | - | 325,786 | |||
Net loss | - | - | - | - | (745,637) | (745,637) | - | (745,637) | |
Currency translation adjustment | - | - | - | (644,640) | (644,640) | - | (644,640) | ||
Balance, September 30, 2025 | 172,287,205 | 184,022,694 | 20,387,726 | 8,053,105 | (79,147,706) | 133,315,819 | - | 133,315,819 | |
Options exercised | 834,805 | 2,795,129 | (893,300) | - | - | 1,901,829 | - | 1,901,829 | |
Restricted share units distributed | 700,014 | 1,553,433 | (1,553,433) | - | - | - | - | - | |
Share-based compensation | - | - | 1,513,630 | - | - | 1,513,630 | - | 1,513,630 | |
Net common shares issued through | 11,385,000 | 27,009,239 | - | - | - | 27,009,239 | - | 27,009,239 | |
bought deal financing | |||||||||
Net loss | - | - | - | - | (3,444,732) | (3,444,732) | - (3,444,732) | ||
Currency translation adjustment | - | - | - | (919,551) | - | (919,551) | - (919,551) | ||
Balance, June 30, 2026 | 185,207,024 | $ 215,380,495 | $ 19,454,623 | $ 7,133,554 | $ (82,592,438) | $ 159,376,234 | $ - $ 159,376,234 | ||
Options exercised | 8(b)(i) | 190,668 | 439,947 | (133,004) | - | - | 306,943 | - 306,943 | |
Restricted share units distributed | 8(b)(ii) | 229,952 | 485,986 | (485,986) | - | - | - | - - | |
Share-based compensation | 8(b) | - | - | 583,982 | - | - | 583,982 | - 583,982 | |
Net loss | - | - | - | - | (1,417,709) | (1,417,709) | - (1,417,709) | ||
Currency translation adjustment | - | - | - | 114,987 | - | 114,987 | - 114,987 | ||
Balance, September 30, 2026 | 185,627,644 | $ 216,306,428 | $ 19,419,615 | $ 7,248,541 | $ (84,010,147) | $ 158,964,437 | $ - $ 158,964,437 | ||
See accompanying notes to the unaudited condensed consolidated interim financial statements.
Page | 5
(Expressed in US dollars)- CORPORATE INFORMATION
New Pacific Metals Corp. along with its subsidiaries (collectively, the "Company" or "New Pacific") is a Canadian mining issuer engaged in exploring and developing mineral properties in Bolivia. The Company is in the stage of exploring and advancing the development of its mineral properties and has not yet determined if they contain economically recoverable mineral reserves. The underlying value and the recoverability of the amounts shown for mineral property interests are entirely dependent upon the existence of recoverable mineral reserves, the ability of the Company to obtain the necessary financing to complete the exploration and development of the mineral properties, and future profitable production or proceeds from the disposition of the mineral property interests.
The Company is publicly listed on the Toronto Stock Exchange ("TSX") under the symbol "NUAG" and on the NYSE American stock exchange ("NYSE-A") under the symbol "NEWP". The head office, registered address and records office of the Company are located at 1066 Hastings Street, Suite 1750, Vancouver, British Columbia, Canada, V6E 3X1.
- MATERIAL ACCOUNTING POLICY INFORMATION
Statement of Compliance and Basis of Preparation
These unaudited condensed consolidated interim financial statements have been prepared in accordance with IAS 34 - Interim Financial Reporting as issued by the International Accounting Standards Board (IASB). These unaudited condensed consolidated interim financial statements should be read in conjunction with the Company's audited consolidated financial statements for the year ended June 30, 2026. These unaudited condensed consolidated interim financial statements follow the same accounting policies, estimates and judgements set out in Note 2 to the audited consolidated financial statements for the year ended June 30, 2026.
These unaudited condensed consolidated interim financial statements have been prepared on a going concern basis.
The unaudited condensed consolidated interim financial statements of the Company as at and for the three months ended September 30, 2026 and 2025 were approved and authorized for issuance in accordance with a resolution of the Board of Directors (the "Board") dated on November 2, 2026.
Basis of Consolidation
These unaudited condensed consolidated interim financial statements include the accounts of the Company and its wholly or partially owned subsidiaries.
Subsidiaries are consolidated from the date on which the Company obtains control up to the date of the disposition of control. Control is achieved when the Company has power over the subsidiary, is exposed or has rights to variable returns from its involvement with the subsidiary; and has the ability to use its power to affect its returns.
Balances, transactions, income and expenses between the Company and its subsidiaries are eliminated on consolidation.
(Expressed in US dollars)Details of the Company's significant subsidiaries which are consolidated are as follows:
Name of subsidiaries Principal activity
Country of incorporation
Proportion of ownership interest held
September 30, June 30,
2026 2026
Mineral properties
New Pacifi c Offshore Inc. Holding company BVI (i) 100% 100% SKN Nickel & Platinum Ltd. Holding company BVI 100% 100% Glory Metals Investment Corp. Limited Holding company Hong Kong 100% 100% New Pacifi c Investment Corp. Limited Holding company Hong Kong 100% 100% New Pacifi c Andes Corp. Limited Holding company Hong Kong 100% 100% Fortress Mining Inc. Holding company BVI 100% 100% New Pacifi c Succes s Inc. Holding company BVI 100% 100% New Pacifi c Forward Inc. Holding company BVI 100% 100%
Minera Alcira S.A. Exploration company Bolivia 100% 100% Si lver Sand NPM Minerales S.A. Corporate service company Bolivia 100% 100%
Colquehuasi S.R.L. Exploration company Bolivia 100% 100% Si lverstrike Pathfinder Mining S.R.L. Exploration company Bolivia 100% 100% Carangas
(i) British Virgin Islands ("BVI")
New IFRS Accounting Standards and interpretations not yet applied
IFRS 18 Presentation and Disclosure in Financial Statements ("IFRS 18")
On April 9, 2024, the IASB issued IFRS 18 Presentation and Disclosure in Financial Statements. IFRS 18 will apply for reporting periods beginning on or after January 1, 2027 and also applies to comparative information. IFRS 18 will replace IAS 1; many of the other existing principles in IAS 1 are retained, with limited changes. IFRS 18 will not impact the recognition or measurement of items in the financial statements, but it may change what an entity reports as its 'operating profit or loss'. Key new concepts introduced in IFRS 18 relate to: (i) the structure of the statement of profit or loss; (ii) required disclosures in the financial statements for certain profit or loss performance measures that are reported outside of an entity's financial statements (that is, management-defined performance measures); and (iii) enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes in general. The Company is currently assessing the effects of IFRS 18 on the financial statements.
- INCOME FROM INVESTMENTS
Income from investments consist of:
Three months ended September 30,
(Expressed in US dollars)2026
2025
Fair value change on equity investments
$ -
$ 13,378
Interest income
316,590
100,673
Income from investments
$ 316,590
$ 114,051
- PROPERTY, PLANT AND EQUIPMENT
Cost
Land and
building
Machinery
Motor vehicles
Office equipment
and furniture
Computer
software
Total
Balance, July 1, 2025
$ 630,000
$ 525,407
$ 486,490
$ 387,206
$ 90,753
2,119,856
Additions
-
19,244
-
15,169
-
34,413
Disposals
-
(134,000)
-
-
-
(134,000)
Foreign currency translation impact
-
-
-
(3,885)
(3,621)
(7,506)
Balance, June 30, 2026
$ 630,000
$ 410,651
$ 486,490
$ 398,490
$ 87,132
$ 2,012,763
Additions
-
-
-
56,797
-
56,797
Disposals
-
-
-
(5,803)
-
(5,803)
Foreign currency translation impact
-
-
-
147
135
282
Balance, September 30, 2026
$ 630,000
$ 410,651
$ 486,490
$ 449,631
$ 87,267
$ 2,064,039
Accumulated depreciation and amortization
Balance, July 1, 2025
$ -
$ (293,874)
$ (359,873)
$ (242,559)
$ (90,753)
$ (987,059)
Depreciation
$ -
$ (57,942)
$ (73,645)
$ (38,813)
-
(170,400)
Disposals
-
74,289
-
-
-
74,289
Foreign currency translation impact
-
-
-
3,733
3,621
7,354
Balance, June 30, 2026
$ -
$ (277,527)
$ (433,518)
$ (277,639)
$ (87,132)
$ (1,075,816)
Depreciation
-
(6,361)
(9,037)
(15,756)
-
(31,154)
Disposals
-
-
-
3,208
-
3,208
Foreign currency translation impact
-
-
-
(133)
(135)
(268)
Balance, September 30, 2026
$ -
$ (283,888)
$ (442,555)
$ (290,320)
$ (87,267)
$ (1,104,030)
Carrying amount
Balance, June 30, 2026
$ 630,000
$ 133,124 $
52,972 $
120,851 $
- $ 936,947
Balance, September 30, 2026
$ 630,000
$ 126,763 $
43,935 $
159,311 $
- $ 960,009
For the three month ended September 30, 2026, certain office equipment and furniture were disposed for proceeds of $6,154 and gain of $1,570 (three month ended September 30, 2025 - $nil).
- MINERAL PROPERTY INTERESTS
Silver Sand Project
On July 20, 2017, the Company acquired the Silver Sand Project. The Project is located in the Colavi District of the Potosí Department, in Southwestern Bolivia, 33 kilometres ("km") northeast of Potosí City, the department capital. The project covers an area of approximately 5.42 km2 at an elevation of 4,072 metres ("m") above sea level.
For the three months ended September 30, 2026, total expenditures of $439,199 (three months ended September 30, 2025 - $513,274) were capitalized under the project.
Carangas Project
In April 2021, the Company signed an agreement with a private Bolivian company to acquire a 98% interest in the Carangas Project. The project is located approximately 180 km southwest of the city of Oruro and within 50 km from Bolivia's border with Chile. The private Bolivian company is 100% owned by Bolivian nationals and holds title to an area of 39 km2.
Under the agreement, the Company is required to cover 100% of the future expenditures on exploration, mining, development, and production activities for the project.
For the three months ended September 30, 2026, total expenditures of $916,576 (three months ended September 30, 2025 - $173,583) were capitalized under the project.
(Expressed in US dollars)Silverstrike Project
In December 2019, the Company acquired a 98% interest in the Silverstrike Project from a private Bolivian corporation. The project covers an area of approximately 13 km2 and is located approximately 140 km southwest of the city of La Paz, Bolivia.
For the three months ended September 30, 2026, total expenditures of $10,838 (three months ended September 30, 2025 - $15,472) were capitalized under the project.
The continuity schedule of mineral property acquisition costs and deferred exploration and development costs is summarized as follows:
Cost
Silver Sand
Carangas
Silverstrike
Total
Balance, June 30, 2025
$
90,580,869
$
21,353,851
$
4,999,645
$
116,934,365
Capitalized exploration expenditures
Reporting and assessment
765
519,339
-
520,104
Drilling and assaying
11,014
8,919
589
20,522
Project management and support
1,610,799
958,627
55,006
2,624,432
Camp service
899,749
154,812
19,458
1,074,019
Permit and license
6,359
42,203
-
48,562
Value added tax not claimed
176,952
21,178
965
199,095
Foreign currency impact
(527,807)
(181,714)
(36,361)
(745,882)
Balance, June 30, 2026
$ 92,758,700
$ 22,877,215
$ 5,039,302
$ 120,675,217
Capitalized exploration expenditures
Reporting and assessment
-
42,365
-
42,365
Drilling and assaying
-
1,868
-
1,868
Project management and support
291,326
747,881
8,316
1,047,523
Camp service
109,200
62,433
2,066
173,699
Permit and license
2,887
51,756
-
54,643
Value added tax not claimed
35,786
10,273
456
46,515
Foreign currency impact
17,838
4,427
1,335
23,600
Balance, September 30, 2026
$ 93,215,737
$ 23,798,218
$ 5,051,475
$ 122,065,430
- ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
Accounts payable and accrued liabilities consist of:
September 30, 2026
June 30, 2026
Accounts payable
$ 492,185
$ 387,991
Accrued liabilities
880,837
548,151
$ 1,373,022
$ 936,142
- RELATED PARTY TRANSACTIONS
Related party transactions are made on terms agreed upon by the related parties. The balances with related parties are unsecured, non-interest bearing, and due on demand. Related party transactions not disclosed elsewhere, if any, in the consolidated financial statements are as follows:
Due to a related party September 30, 2026 June 30, 2026
Silvercorp Metals Inc.
$ 223,290 $
189,655
Silvercorp Metals Inc. ("Silvercorp") has one director and one officer in common with the Company. Silvercorp and the Company share office space and Silvercorp provides various general and administrative services to the Company. The Company expects to continue making payments to Silvercorp in the normal course of business. Office and administrative expenses rendered and incurred by Silvercorp on behalf of the Company for the three months ended September 30, 2026 were $251,095 (three months ended September 30, 2025 - $208,463).
Compensation of key management personnel
The remuneration of directors and other members of key management personnel for the three months ended September 30, 2026 and 2025 are as follows:
Three months ended September 30,
2026
2025
Director's cash compensation
$ 26,799
$ 16,336
Director's share-based compensation
126,465
137,653
Key management's cash compensation
165,934
97,067
Key management's share-based compensation
226,647
108,072
$ 545,845
$ 359,128
Other than as disclosed above, the Company does not have any ongoing contractual or other commitments resulting from transactions with related parties.
- SHARE CAPITAL
Share Capital - authorized share capital
The Company's authorized share capital consists of an unlimited number of common shares without par value.
Share-based compensation
The Company has a share-based compensation plan (the "Plan") under which the Company may issue stock options and restricted share units ("RSUs"). The maximum number of common shares to be reserved for issuance on any share-based compensation under the Plan is a rolling 10% of the issued and outstanding common shares from time to time.
For the three months ended September 30, 2026, a total of $403,290 (three months ended September 30, 2025 - $324,826) was recorded as share-based compensation expense.
For the three months ended September 30, 2026, a total of $180,693 (three months ended September 30, 2025 - $960) was capitalized under mineral property interests.
Stock options
The continuity schedule of stock options, as at June 30, 2026, is as follows:
Number of options
Weighted average exercise
price (CAD$)
Balance, July 1, 2025
4,696,000
$ 2.68
Options granted
400,000
4.67
Options exercised
(900,027)
3.04
Options forfeited
(381,335)
2.42
Balance, June 30, 2026
3,814,638
$ 2.83
Options exercised
(190,668)
2.24
Options forfeited
(18,888)
2.38
Balance, September 30, 2026
3,605,082
$ 2.86
The following table summarizes information about stock options outstanding as at September 30, 2026:
Exercise prices (CAD$)
Number of options
outstanding as at September 30, 2026
Weighted
average remaining contractual life (years)
Number of options
exercisable as at September 30, 2026
Weighted
average exercise price (CAD$)
$ 1.58
1,066,416
3.37
472,166
$1.58
2.10
713,001
2.30
570,332
$2.10
3.33
103,000
0.35
103,000
$3.33
3.42
587,000
1.30
587,000
$3.42
3.67
20,000
1.32
20,000
$3.67
3.89
5,000
0.40
5,000
$3.89
4.00
733,000
0.68
733,000
$4.00
4.67
377,665
4.39
52,671
$4.67
$1.58 - $4.67
3,605,082
2.28
2,543,169
$2.97
Subsequent to September 30, 2026, a total of 100,000 options were exercised with an average exercise price of CAD $3.30.
RSUs
The continuity schedule of RSUs, as at September 30, 2026, is as follows:
Number of shares
Weighted average grant date
closing price per share
(CAD$)
Balance, June 30, 2025
2,188,866
$ 2.40
Granted
745,000
4.67
Forfeited
(182,834)
2.08
Distributed
(1,017,696)
2.88
Balance, June 30, 2026
1,733,336
$ 3.12
Forfeited
(32,222)
2.49
Distributed
(229,952)
2.96
Balance, September 30, 2026
1,471,162
$ 3.16
Subsequent to September 30, 2026, a total of 129,417 RSUs were vested and distributed.
- FINANCIAL INSTRUMENTS
The Company manages its exposure to financial risks, including liquidity risk, foreign exchange rate risk, interest rate risk, credit risk, and equity price risk in accordance with its risk management framework. The Board of Directors has overall responsibility for the establishment and oversight of the Company's risk management framework and reviews the Company's policies on an ongoing basis.
Fair Value
The Company classifies its fair value measurements within a fair value hierarchy, which reflects the significance of inputs used in making the measurements as defined in IFRS 13 - Fair Value Measurement ("IFRS 13").
Level 1 - Unadjusted quoted prices at the measurement date for identical assets or liabilities in active markets.
Level 2 - Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.
Level 3 - Unobservable inputs which are supported by little or no market activity.
The following table sets forth the Company's financial assets that are measured at fair value on a recurring basis by level within the fair value hierarchy as at September 30, 2026 and June 30, 2026 that are not otherwise disclosed. As required by IFRS 13, financial assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.
Fair value as at September 30, 2026
Recurring measurements
Level 1
Level 2
Level 3
Total
Financial Assets
Cash and cash equivalent
$ 36,922,547 $
- $
- $
36,922,547
Fair value as at June 30, 2026
Recurring measurements
Level 1
Level 2
Level 3
Total
Financial Assets
Cash and cash equivalent
$ 38,565,329 $
- $
- $
38,565,329
Fair value of other financial instruments excluded from the table above approximates their carrying amount as of September 30, 2026, and June 30, 2026, respectively, due to the short-term nature of these instruments.
There were no transfers into or out of Level 1, 2, or 3 during the three months ended September 30, 2026.
Liquidity Risk
The Company has a history of losses and no operating revenues from its operations. Liquidity risk is the risk that the Company will not be able to meet its short-term business requirements. As at September 30, 2026, the Company had a working capital position of $35,938,998 and sufficient cash resources to meet the Company's short-term financial liabilities and its planned exploration and development expenditures on various projects in Bolivia for, but not limited to, the next 12 months.
(Expressed in US dollars)In the normal course of business, the Company may enter into contracts that give rise to commitments for future minimum payments. The following summarizes the remaining contractual maturities of the Company's financial liabilities:
September 30, 2026 June 30, 2026
Due within a year Total Total
Accounts payable and accrued liabilities
$ 1,373,022
$ 1,373,022
$ 936,142
Due to a related party
223,290
223,290
189,655
$ 1,596,312
$ 1,596,312
$ 1,125,797
Foreign Exchange Risk
The Company is exposed to foreign exchange risk when it undertakes transactions and holds assets and liabilities denominated in foreign currencies other than its functional currencies. The functional currency of the head office, Canadian subsidiaries and all intermediate holding companies is CAD. The functional currency of all Bolivian subsidiaries is USD. The Company currently does not engage in foreign exchange currency hedging. The Company's exposure to foreign exchange risk that could affect net income is summarized as follows:
Financial assets denominated in foreign currencies other than relevant functional
currency
September 30, 2026
June 30, 2026
United States dollars
$ 625,101
$ 626,576
Bolivianos
1,638,332
1,728,490
Total
$ 2,263,433
$ 2,355,066
Financial liabilities denominated in foreign currencies other than relevant functional currency
United States dollars
$ 250,356
$ 220,948
Bolivianos
429,262
465,380
Total
$ 679,618
$ 686,328
As at September 30, 2026, with other variables unchanged, a 1% strengthening (weakening) of the USD against the CAD would have increased (decreased) net income by approximately $3,747.
As at September 30, 2026, with other variables unchanged, a 1% strengthening (weakening) of the Bolivianos against the USD would have increased (decreased) net income by approximately $12,091.
Interest Rate Risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market interest rates. The Company holds a portion of cash in bank accounts that earn variable interest rates. Due to the short-term nature of these financial instruments, fluctuations in market rates do not have significant impact on the fair values of the financial instruments as of September 30, 2026. The Company, from time to time, also owns cashable guaranteed investment certificates ("GICs") and bonds that earn interest payments at fixed rates to maturity. Fluctuation in market interest rates usually will have an impact on bond's fair value. An increase in market interest rates will generally reduce bond's fair value while a decrease in market interest rates will generally increase it. The Company monitors market interest rate fluctuations closely and adjusts the investment portfolio accordingly.
(Expressed in US dollars)Credit Risk
Credit risk is the risk of financial loss to the Company if the counterparty to a financial instrument fails to meet its contractual obligations. The Company's exposure to credit risk is primarily associated with cash and cash equivalents, and receivables. The carrying amount of financial assets included on the statement of financial position represents the maximum credit exposure.
The Company has deposits of cash and cash equivalent that meet minimum requirements for quality and liquidity as stipulated by the Board. Management believes the risk of loss to be remote, as the majority of its cash and cash equivalent is held with major financial institutions. Bonds by nature are exposed to more credit risk than cash and cash equivalent. The Company manages its risk associated with bonds by only investing in large globally recognized corporations from diversified industries. As at September 30, 2026, the Company had a receivables balance of $96,155 (June 30, 2026 - $81,208).
- CAPITAL MANAGEMENT
The objectives of the capital management policy are to safeguard the Company's ability to support exploration and operating requirements on an ongoing basis, continue the investment in high quality assets along with safeguarding the value of its mineral properties, and support any expansionary plans.
The capital of the Company consists of the items included in equity less cash, cash equivalents and short-term investments. Risk and capital management are primarily the responsibility of the Company's corporate finance function and is monitored by the Board. The Company manages the capital structure and makes adjustments depending on economic conditions. Significant risks are monitored and actions are taken, when necessary, according to the Company's approved policies.
- SEGMENTED INFORMATION
As at and for the three months ended September 30, 2026, the Company operates in four (as at and for the three months ended September 30, 2025 - four) reportable operating segments, one being the corporate segment; the other three being the exploration and development segments based on mineral properties in Bolivia. These reportable segments are components of the Company where separate financial information is available that is evaluated regularly by the Company's Chief Executive Officer, the chief operating decision maker ("CODM").
(Expressed in US dollars)Segment information for assets and liabilities are as follows:
September 30, 2026
Exploration and Development
Corporate Total
Silver Sand
Carangas
Silverstrike
Cash and cash equivalents
$ 35,724,721
$ 754,152
$ 455,933
$ (12,259)
$ 36,922,547
Plant and equipment
131,409
116,847
78,331
633,422
960,009
Mineral property interests
-
93,215,737
23,798,218
5,051,475
122,065,430
Other assets
519,334
62,885
30,544
-
612,763
Total Assets
$ 36,375,464
$ 94,149,621
$ 24,363,026
$ 5,672,638
$ 160,560,749
Total Liabilities
$ (1,487,497)
$
(75,173)
$
(29,661)
$
(3,981)
$
(1,596,312)
June 30, 2026
Exploration and Development
Corporate Total
Silver Sand
Carangas
Silverstrike
Cash and cash equivalents
$ 37,292,965
$ 742,235
$ 542,341
$ (12,212)
$ 38,565,329
Plant and equipment
134,578
129,228
39,467
633,674
936,947
Mineral property interests
-
92,758,700
22,877,215
5,039,302
120,675,217
Other assets
276,914
26,539
21,085
-
324,538
Total Assets
$ 37,704,457
$ 93,656,702
$ 23,480,108
$ 5,660,764
$ 160,502,031
Total Liabilities
$ (894,887)
$
(225,807)
$
(2,140)
$
(2,963)
$
(1,125,797)
Segment information for operating results are as follows:
Three months ended September 30, 2026
Exploration and Development Corporate Total
Silver Sand
Carangas
Silverstrike
Project evaluation and corporate development
$ (1,829) $
- $
-
$ -
$ (1,829)
Salaries and benefits
(449,718)
-
-
-
(449,718)
Share-based compensation
(403,290)
-
-
-
(403,290)
Other operating expenses
(528,438)
(29,014)
(29,014)
(815)
(587,281)
Total operating expense
(1,383,275)
(29,014)
(29,014)
(815)
(1,442,118)
Income from investments
301,741
8,322
6,527
-
316,590
Gain on disposal of property, plant and equipment
1,570
-
-
-
1,570
Foreign exchange gain (loss)
509
(143,020)
(123,526)
(27,714)
(293,751)
Net loss
$ (1,079,455) 0 $
(163,712) $
(146,013)
$ (28,529)
$ (1,417,709)
Three months ended September 30, 2025
Silver Sand
Carangas
Silverstrike
Project evaluation and corporate development
$ (14,619)
$ -
$
-
$ -
$ (14,619)
Salaries and benefits
(432,582)
-
-
-
(432,582)
Share-based compensation
(324,826)
-
-
-
(324,826)
Other operating expenses
(425,650)
(93,597)
(23,678)
(1,880)
(544,805)
Total operating expense
(1,197,677)
(93,597)
(23,678)
(1,880)
(1,316,832)
Income from investments
114,051
-
-
-
114,051
Foreign exchange gain
146,947
231,507
78,690
-
457,144
Net (loss) income
$ (936,679)
$ 137,910
$ 55,012
$ (1,880)
$ (745,637)
Corporate Exploration and Development Total
(Expressed in US dollars) - SUPPLEMENTARY CASH FLOW INFORMATION
Changes in non-cash operating working capital:
Three months ended September 30,
2026 | 2025 | |
Receivables | $ (16,764) | $ (6,870) |
Deposits and prepayments | (276,132) | (244,265) |
Accounts payable and accrued liabilities | 639,477 | 416,972 |
Due to a related party | 33,806 | 6,180 |
$ 380,387 | $ 172,017 |
Non-cash capital transactions:
Three months ended September 30,
2026 | 2025 | |
Reduction of capital expenditures of mineral property interest in accounts payable and accrued | $ (195,190) | $ (2,481) |
liabilities |
Cash and cash equivalents: September 30, 2026 June 30, 2026
Cash on hand and at bank
$ 2,739,762 $
4,695,723
Cash equivalents 34,182,785 33,869,606
$ 36,922,547 $ 38,565,329
Cash and cash equivalents consists of: Cash and cash equivalents: | September 30, 2026 | June 30, 2026 |
Cash on hand and at bank | $ 2,739,762 | $ 4,695,723 |
Cash equivalents | 34,182,785 | 33,869,606 |
$ 36,922,547 $ 38,565,329
