New Pacific Reports Financial Results FOR the Three Month and Year Ended
1
NEWS RELEASE
NEW PACIFIC REPORTS FINANCIAL RESULTS FOR
THE
THREE
MONTH
AND
YEAR
ENDED
JUNE
3
0
, 202
4
VANCOUVER, BRITISH COLUMBIA
–
SEPTEMBER
9
,
202
4
:
New Pacific Metals Corp.
(“New Pacific” or the “Company”)
reports
its financial results for the
three
months
and
year
ended
June 30
, 202
4
.
All figures are expressed in
US
d
ollars
unless otherwise stated.
FISCAL 2024 HIGHLIGHT
The Company
filed its independent National Instrument 43
-
101
–
Standards of Disclosure for Mineral Projects
(“NI 43
-
101”)
Pre
-
Feasibility Study for the Silver Sand
P
roject
(the “
Silver Sand
PFS Technical Report”)
on
August
8
, 2024. The
Silver Sand
P
FS
Technical Report shows an post
-
tax net present value (“NPV”) at a 5% discount rate
of $740 million with an internal
rate of
return (“IRR”) of 37%
at a base case price of $24.00 per ounce (“oz”) of
silver
, underpinned by a production of
approximately
157 million
oz (“Moz”) of silver
over 13 years of mine life
with average life of mine
(“LOM”)
all
-
in sustaining cost
(“AISC”)
of $10.69/oz
silver
.
The Company filed its inaugural NI 43
-
101 mineral resource estimate for its Carangas Project
(the “Carangas
MRE”)
on September 18, 2023. Total indicated mineral resources of 214.9 million tonnes (“Mt”) containing 205.3
Moz of silver, 1,588.2 thousand
oz
(“Koz”) of gold, 1,444.9 million pounds (“Mlbs”) of lead, 2,653.7 Mlbs of zinc,
and 112.6 Mlbs of copper; or collectively 559.8 Mozs silver equivalent (“AgEq”). Total inferred mineral resources
are 45.0 Mt containing 47.7 Mozs of silver, 217.7 Kozs of gol
d,
297.9 Mlbs of lead, 533.7 Mlbs of zinc, and 16.8
Mlbs of copper; or collectively 109.8 Mozs AgEq.
Successfully closed a bought deal financing on September 29, 2023. A total of 13,208,000 common shares of the
Company were sold under the bought deal financing at a price of $1.96 (CAD $2.65) per common share for total
gross proceeds of approximately $25.9
million (CAD $35 million).
The underwriter’s fee and other issuance costs
for the transaction were approximately $1.4 million.
FINANCIAL RESULTS
Net
loss
attributable to equity holders of the Company
f
or the
three
months
and
year
ended
June 30
, 202
4
of
$
1
.
48
million
and $
6
.
02
million
or $0.0
1
and $0.0
4
per share
, respectively
(
three
months
and
year
ended
June 30
, 202
3
–
net
loss of $
1
.
86
million
and $
8
.
10
million
or $0.0
1
per share
and $0.0
5
per share, respectively
). T
he Company
’
s financial
results were
mainly impacted by the following
items:
Operating expenses
f
or the three
months
and
year
ended
June 30
, 202
4
of
$
1.
53
million
and $
6
.
94
million,
respectively
(three
months
and
year
ended
June 30
, 202
3
-
$
1
.
89
million
and $
8
.
2
6
million, respectively
).
I
ncome
from investments
f
or the three
months
and
year
ended
June 30
, 202
4
of
$0.
32
million
and $
1
.
06
million,
respectively
(three
months
and
year
ended
June 30
, 202
3
–
$0.
0
2
million
and $0.
1
8
million, respectively
).
2
Gain
on disposal of
property,
plant and equipment
for the three
months
and
year
ended
June 30
, 202
4
of
$nil
and
$0.05 million
, respectively
(three
months
and
year
ended
June 30
, 202
3
–
$nil
and $nil, respectively
).
Provision for credit loss
for the three
months and year
ended
June 30
, 202
4
of
$
0.27 million
and
$0.
27
million
,
respectively
(three
months and year
ended
June 30
, 202
3
–
$nil
and $nil, respectively
).
Foreign exchange
gain
(loss)
f
or the
three
months year
ended
June 30
, 202
4
of
$
(
0.0
1
)
million
and $0.0
8
million,
respectively
(
three
months and year
ended
June 30
, 202
3
–
$
0.
0
1
million
and $
(
0.0
2
)
million, respectively
).
Working Capital:
As of
June 30
,
202
4
, the Company had working capital of
$
21.38
million.
PROJECT
EXPENDITURE
The following schedule summarized the expenditure incurred by category for each
of the Company’s
project
s
for
relevant periods:
SILVER SAND PROJECT
For the three
months
and year
ended
June 30
, 202
4
, total expenditures of $
1
.
02
million
and $
3
.
21
million,
respectively
(three
months
and year
ended
June 30
, 202
3
-
$
0.93
million
and $
6
.
7
4
million, respectively
) were
capitalized under the project.
CARANGAS PROJECT
For the three
months
and year
ended
June 30
, 202
4
, total expenditures of $
0
.
4
7
million
and $
1
.
79
million,
respectively
(three
months
and year
ended
June 30
, 202
3
-
$
1
.
75
million
and $
12
.
1
4
million, respectively
) were
capitalized under the project.
Cost
Silver Sand
Carangas
Silverstrike
Total
Balance, July 1, 2022
79,594,886
$
6,011,566
$
3,324,120
$
88,930,572
$
Capitalized exploration expenditures
Reporting and assessment
1,008,174
88,558
-
1,096,732
Drilling and assaying
1,925,695
8,289,678
977,881
11,193,254
Project management and support
2,719,120
1,424,573
256,569
4,400,262
Camp service
467,690
1,005,158
174,651
1,647,499
Permit and license
195,821
9,389
-
205,210
Value added tax not claimed
426,406
1,317,819
154,401
1,898,626
Foreign currency impact
(201,972)
(8,831)
(24,680)
(235,483)
Balance, June 30, 2023
86,135,820
$
18,137,910
$
4,862,942
$
109,136,672
$
Capitalized exploration expenditures
Reporting and assessment
999,402
408,874
-
1,408,276
Drilling and assaying
47,217
23,894
-
71,111
Project management and support
1,765,297
1,079,177
63,919
2,908,393
Camp service
249,764
241,945
36,754
528,463
Permit and license
33,073
9,308
-
42,381
Value added tax not claimed
112,332
31,061
979
144,372
Foreign currency impact
(365,571)
(78,127)
(30,039)
(473,737)
Balance, June 30, 2024
88,977,334
$
19,854,042
$
4,934,555
$
113,765,931
$
3
SILVERSTRIKE PROJECT
For the
three
months
and year
ended
June 30
, 202
4
, total expenditures of
$
0.0
2
million
and $0.
10
million,
respectively
(
three
months
and year
en
ded
June 30
,
202
3
-
$
0.
2
2
million
and $1.5
6
million, respectively
)
were
capitalized under the
p
roject.
MANAGEMENT DISCUSSION
AND ANALYSIS
This news release should be read in conjunction with the Company’s
m
anagement
d
iscussion and
a
nalysis
and
the
audited
consolidat
ed
f
inancial
statements
and notes thereto for the corresponding period, which have been filed
with the Canadian Securities Administrat
ors
and are available
under the Company’s profile on SEDAR
+
at
www.sedarplus.ca
,
on EDGAR at
www.sec.gov
and on the Company’s website at www.newpacificmetals.com.
ABOUT NEW PACIFIC
New Pacific is a Canadian exploration and development company with three precious metal projects in Bolivia. The
Company’s flagship Silver Sand project has the potential to be developed into one of the world’s largest silver mines.
The Company is also rapi
dly advancing its Carangas project towards a Preliminary Economic Assessment. For the
Silverstrike project, the Company completed a discovery drill program in 2022.
For further information, please contact:
Andrew Williams,
CEO
New Pacific Metals Corp.
Phone: (604) 633
-
1368
Ext. 236
1750
–
1066 Hastings Street, Vancouver, BC V6E 3X1, Canada
U.S. & Canada toll
-
free: 1
(
877
)
631
-
0593
E
-
mail:
invest
@newpacificmetals.com
For additional information and t
o receive
the C
ompany
news by e
-
mail, please register using New Pacific’s website
at
www.newpacificmetals.com
.
CAUTIONARY NOTE REGARDING FORWARD
-
LOOKING INFORMATION
Certain of the statements and information in this news release constitute “forward
-
looking statements” within the
meaning of the United States Private Securities Litigation Reform Act of 1995
and “forward
-
looking information”
within the meaning of applicable Canadian provincial securities laws. Any statements or information that express or
involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, as
sumptions or
future events or performance (often, but not always, using words or phrases such as “expects”, “is expected”,
“anticipates”, “believes”, “plans”, “projects”, “estimates”, “assumes”, “intends”, “strategies”, “targets”, “goals”,
“forecasts”, “ob
jectives”, “budgets”, “schedules”, “potential” or variations thereof or stating that certain actions,
events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of
these terms and similar expressions
) are not statements of historical fact and may be forward
-
looking statements or
information. Such statements include, but are not limited to, statements regarding
: the Company’s financial results;
anticipated exploration, drilling, development, constructi
on, and other activities or achievements of the Company;
inferred, indicated or measured mineral resources or mineral reserves on the Company’s projects, including, but not
limited to,
the
Silver Sand PFS Technical Report
; the anticipation that the Company will file a Preliminary Economic
Assessment in respect of its Carangas project; the timing of receipt of permits and regulatory approvals; and
estimates of the Company’s revenues and capital expenditures.
Forward
-
looking statements or information are subject to a variety of known and unknown risks, uncertainties and
other factors that could cause actual events or results to differ from those reflected in the forward
-
looking statements
or information, includ
ing, without limitation, risks relating to: fluctuating equity prices, bond prices, commodity
prices; calculation of resources, reserves and mineralization, general economic conditions, foreign exchange risks,
4
interest rate risk, foreign investment risk; loss of key personnel; conflicts of interest; dependence on management,
uncertainties relating to the availability and costs of financing needed in the future, environmental risks, operations
and political condi
tions, the regulatory environment in Bolivia and Canada, risks associated with community relations
and corporate social responsibility, and other factors described under the heading “Risk Factors” in the Company’s
annual information form for the year ended
June 30, 2023 and its other public filings. This list is not exhaustive of the
factors that may affect any of the Company’s forward
-
looking statements or information.
The forward
-
looking statements are necessarily based on a number of estimates, assumptions, beliefs, expectations
and opinions of management as of the date of this news release that, while considered reasonable by management,
are inherently subject to sign
ificant business, economic and competitive uncertainties and contingencies. These
estimates, assumptions, beliefs, expectations and options include, but are not limited to, those related to the
Company’s ability to carry on current and future operations,
including: development and exploration activities; the
timing, extent, duration and economic viability of such operations; the accuracy and reliability of estimates,
projections, forecasts, studies and assessments; the Company’s ability to meet or achieve
estimates, projections and
forecasts; the stabilization of the political climate in Bolivia; the Company’s ability to obtain and maintain social
license at its mineral properties; the availability and cost of inputs; the price and market for outputs; forei
gn exchange
rates; taxation levels; the timely receipt of necessary approvals or permits, including the ratification and approval of
the Mining Production Contract with the Corporacion Minera de Bolivia by the Plurinational Legislative Assembly of
Bolivia;
the ability of the Company’s Bolivian partner to convert the exploration licenses at
its
Carangas
p
roject to
administrative mining contracts; the ability to meet current and future obligations; the ability to obtain timely
financing on reasonable terms wh
en required; the current and future social, economic and political conditions; and
other assumptions and factors generally associated with the mining industry.
Although the forward
-
looking
statements contained in this news release are based upon what management believes are reasonable assumptions,
there can be no assurance that actual results will be consistent with these forward
-
looking statements. All forward
-
l
ooking statements in this news release are qualified by these cautionary statements. Accordingly
, readers should
not place undue reliance on such statements. Other than specifically required by applicable laws, the Company is
under no obligation and expressly disclaims any such obligation to update or alter the forward
-
looking statements
whether as a
result of new information, future events or otherwise except as may be required by law. These forward
-
looking statements are made as of the date of this news release.
CAUTIONARY NOTE TO U
NITED STATES
INVESTORS
This news release has been prepared in accordance with the requirements of the securities laws in effect in Canada
which differ from the requirements of United States securities laws.
All mining terms used herein but not otherwise
defined have the meanings set forth in N
ational Instrument
43
-
101
–
Standards
of Disclosure for Mineral Projects
(“NI 43
-
101”)
.
Unless otherwise indicated, the technical and scientific disclosure herein has been prepared in
accordance with NI 43
-
101, which differs significantly from the requirements adopted by the
United States
Securities
and Exchange Commission.
Accordingly, information contained in this
news release
containing descriptions of the Company's mineral deposits
may not be comparable to similar information made public by U
nited States
companies subject to the reporting and
disclosure requirements of United States federal securities laws and the rules and regulations thereunder.
Additional information relating to the Company
, including the Company’s
a
nnual
i
nformation
f
orm,
can be obtained
under the Company’s profile on
SEDAR
+
at
www.sedar
plus
.c
a
,
on EDGAR at
www.sec.gov
,
and
on
the Company’s
website at www.newpacific
metals.com
.