New Pacific Metals Corp. (TSX: NUAG) (NYSE American: NEWP) has released its financial results for the three months and fiscal year ended June 30, 2026, alongside notable advancements at its Carangas Silver-Gold Project in Bolivia. The company reported a net loss attributable to equity holders of $990,000, or $0.01 per share, for the quarter, and $4.19 million, or $0.02 per share, for the full year. Despite the losses, the company maintains a solid cash position with working capital of $37.76 million as of June 30.
Subsequent to the fiscal year-end, New Pacific took a significant step forward by signing 30-year Administrative Mining Contracts covering approximately 39 square kilometers of the Carangas Project. These contracts will be submitted to the Plurinational Legislative Assembly of Bolivia for ratification and approval, a crucial step toward securing the necessary permits for development. This move underscores the company's commitment to advancing the project and its ability to navigate the regulatory landscape in Bolivia.
The company also filed an updated preliminary economic assessment (PEA) for Carangas, which highlighted robust economic metrics. The assessment reports a post-tax net present value (NPV) at a 5% discount rate of $2.65 billion and an internal rate of return (IRR) of 35.9% under base-case metal prices. The PEA outlines a 19-year mine life, excluding two years of pre-production, with initial capital costs estimated at $644.5 million and a post-tax payback period of 2.4 years. These figures demonstrate the project's strong potential to generate significant value for shareholders and contribute to the regional economy.
The Carangas project, located in Oruro, is part of New Pacific's portfolio of precious metals projects in Bolivia. The company also holds the Silver Sand project in Potosí, which has the potential to become one of the world's largest silver mines. With nearly a decade of operating experience in Bolivia, New Pacific has built strong relationships with stakeholders and shareholders, which is critical for successful project development in the region.
This progress comes at a time when the demand for silver and gold remains strong, driven by industrial applications, investment demand, and economic uncertainty. The updated PEA positions Carangas as a potentially significant source of silver and gold, which could help meet future supply needs. For industry observers and investors, the positive economic indicators and the company's strategic milestones suggest that Carangas is on track to become a major mining operation.
The successful ratification of the mining contracts by Bolivia's legislative assembly would be a major de-risking event, providing the company with long-term security of tenure. This would likely enhance the project's attractiveness to potential partners and financiers, and could lead to further investments in the region's mining sector. Moreover, the project's robust economics could make it a cornerstone asset for New Pacific, contributing to the company's growth and shareholder value over the coming decades.
Investors and stakeholders can access the full details of the press release through the provided link: https://ibn.fm/j1PNI. Additionally, for the latest news and updates regarding New Pacific Metals, visit the company's newsroom at http://ibn.fm/NEWP.
