New Pacific Metals Corp. (TSX: NUAG) (NYSE American: NEWP) has reported its financial results for the three months and fiscal year ended June 30, 2026, along with key advancements at its Carangas Silver-Gold Project in Bolivia. The company recorded 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. As of June 30, New Pacific held working capital of $37.76 million, positioning the company to continue its development activities.
The most notable development came after the fiscal year-end, when New Pacific signed 30-year Administrative Mining Contracts covering approximately 39 square kilometers of the Carangas Project. These contracts are now set to be submitted to the Plurinational Legislative Assembly of Bolivia for ratification and approval, a critical step in securing the project's long-term tenure and advancing it toward production.
In addition, the company filed an updated preliminary economic assessment (PEA) for Carangas, which outlines robust project 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 also details 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.
The Carangas Silver-Gold Project, located in Oruro, Bolivia, is one of two precious metals projects under development by New Pacific. The other, the Silver Sand project in Potosí, has the potential to become one of the world's largest silver mines. The combined portfolio positions New Pacific as a significant player in the precious metals sector, with a focus on advancing both projects through the permitting and development stages.
The updated PEA underscores the economic viability of Carangas, which could become a major source of silver and gold production. With a post-tax NPV of $2.65 billion and an IRR of 35.9%, the project offers substantial potential returns for investors. The initial capital expenditure of $644.5 million is a significant investment, but the projected payback period of 2.4 years suggests a rapid return on investment once production begins.
The signing of the Administrative Mining Contracts is a crucial milestone, as it secures the mining rights for the project area for three decades. This long-term stability is essential for attracting financing and moving forward with construction. The contracts will now undergo legislative approval, a process that, once completed, would remove a major hurdle in the project's development timeline.
New Pacific's financial position remains solid, with working capital of $37.76 million as of June 30, 2026. This liquidity, combined with the potential for future financing backed by the robust PEA, provides a foundation for the company to continue its development efforts. The company's experience in Bolivia, spanning nearly a decade, has earned the confidence of its stakeholders and shareholders.
The progress at Carangas is a positive signal for the mining industry, particularly for projects in Bolivia. The successful advancement of the project could encourage further investment in the region and contribute to the local economy. For investors, the updated PEA and contract signing represent tangible progress that could enhance shareholder value over the long term.
As New Pacific moves forward, the focus will be on completing the legislative approval process and advancing the project towards a construction decision. The company's commitment to developing its projects responsibly and sustainably will be key to realizing the full potential of Carangas and Silver Sand.
For more information on New Pacific Metals and its projects, visit the company's newsroom at http://ibn.fm/NEWP.
