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, while also detailing major 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 fiscal year. As of June 30, New Pacific maintained working capital of $37.76 million, positioning it to continue advancing its projects.
Subsequent to the fiscal year-end, New Pacific signed 30-year Administrative Mining Contracts covering approximately 39 square kilometers of the Carangas Project. These contracts will now be submitted to the Plurinational Legislative Assembly of Bolivia for ratification and approval, a crucial step toward securing the project's mineral rights and advancing toward development. The signing underscores the company's long-term commitment to Bolivia, where it has nearly a decade of operating experience.
In parallel, the company filed an updated preliminary economic assessment (PEA) for Carangas, outlining robust economics. The PEA 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% at base-case metal prices. The assessment projects 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 highlight the project's potential to become a significant silver-gold producer, contributing to New Pacific's portfolio alongside its Silver Sand project in Potosí, which has the potential to become one of the world's largest silver mines.
The Carangas project, located in Oruro, strengthens New Pacific's portfolio through its scale, robust economics, and regional exploration potential. With the signing of the mining contracts and the updated PEA, the company is making tangible progress toward advancing Carangas through the permitting and development stages. The ratification by Bolivia's legislative assembly is a critical milestone that could unlock the project's value and provide a clear pathway to production.
For investors, these developments signal that New Pacific is executing on its strategy to advance its Bolivian assets. The company's financial position, with working capital of $37.76 million, provides a runway to support ongoing activities. However, the net losses reported reflect the costs associated with exploration and development, which are typical for companies at this stage. The successful ratification of the mining contracts and continued progress at Carangas could be transformative, potentially positioning New Pacific as a major player in the silver and gold mining sector.
The broader implications for the mining industry are significant, as Bolivia remains an underexplored but mineral-rich jurisdiction. New Pacific's ability to navigate the regulatory landscape and secure long-term contracts demonstrates the viability of developing projects in the region. Should Carangas proceed to production, it could contribute substantial silver and gold output, impacting global supply dynamics. The updated PEA's strong economic metrics suggest that, with the necessary approvals, Carangas could attract further investment and support local economic development in Bolivia.
As New Pacific awaits legislative approval, stakeholders will be watching closely. The company's next steps will be crucial in determining the timeline for Carangas and its potential to deliver value to shareholders and the region alike.
