Highlights
- New Pacific Metals (TSX: NUAG) signed 30-year Administrative Mining Contracts with Bolivia’s mining authority for its Carangas Silver-Gold Project; the contracts still require ratification by Bolivia’s national legislature.
- Fiscal 2026 financial results show a modest net loss of $4.19 million for the year and $37.76 million in working capital, typical for a pre-production explorer.
- The company’s own disclosure flags real risks: recent social unrest and a state of emergency in Bolivia, and a pit design that depends on state-owned concessions the company does not currently hold.
New Pacific Metals Corp. (TSX: NUAG; NYSE-A: NEWP) reported its financial results for the three months and fiscal year ended June 30, 2026 on September 3, 2026, alongside a set of operational updates for its Carangas Silver-Gold Project in Oruro, Bolivia. The most notable item: on August 21, 2026, the company signed Administrative Mining Contracts (AMCs) with Bolivia’s Administrative Mining Jurisdictional Authority (AJAM), covering roughly 39 square kilometers of the Carangas project for a fixed 30-year term. The signed contracts have now been submitted to Bolivia’s Plurinational Legislative Assembly for ratification and approval, meaning this is a significant step, but not yet a finished one; final legislative approval is still outstanding.
The Financial Picture
For the full fiscal year, New Pacific reported a net loss of $4.19 million, or $0.02 per share, compared to a $3.76 million loss the prior year. Operating expenses were roughly flat year over year at $5.95 million, and the company reported $1.01 million in investment income and a $0.77 million foreign exchange gain for the year. As of June 30, 2026, the company held $37.76 million in working capital. These are the kind of numbers typical of a company still in the permitting and development stage, most of its spending goes toward exploration, permitting, and overhead rather than production revenue, since neither Carangas nor the company’s larger Silver Sand project is yet in production.
The company’s exploration spending remains modest and split across three projects: $2.71 million capitalized at Silver Sand, $1.71 million at Carangas, and $0.08 million at the early-stage Silverstrike project during the year. New Pacific also disclosed that it closed a bought-deal financing in October 2025, raising roughly $28.8 million (CAD $40.4 million) by selling shares at CAD $3.55 each, and appointed Jalen Yuan as CEO and Chester Xie as CFO that same month, following their earlier roles as interim CEO and CFO.
A Quick Recap on Carangas Economics
The release restates figures from the company’s updated Preliminary Economic Assessment filed August 14, 2026: a post-tax net present value of $2.65 billion, a 35.9% internal rate of return, a 19-year mine life producing an estimated 339 million ounces of silver equivalent, and initial capital costs of $644.5 million with a 2.4-year payback. As with any PEA, these figures are preliminary, based partly on lower-confidence Inferred resources, and not a guarantee of what the project will ultimately produce or cost.
Two Risks Worth Understanding
The company’s own cautionary disclosure flags two specific issues beyond the usual PEA caveats. First, Bolivia has recently experienced social unrest, including protests and blockades that led to a government-declared state of emergency, and the company acknowledges this kind of instability could affect permitting timelines, construction schedules, and operating costs going forward. Second, the deeper gold zone in the project’s PEA-stage pit design requires mining waste rock on mining concessions in the southern part of the pit that New Pacific does not currently own; those concessions, held by the Bolivian state, account for roughly 1.85% of the mineral resources included in the PEA’s economic analysis. New Pacific says it’s working with the Bolivian government to secure them, but there’s no certainty it will succeed, and failing to do so could force the company to redesign the pit and revisit the PEA’s results.
Separately, the company noted it signed a Framework Agreement for Cooperation and Coordination with the Carangas community (TIOC Carangas) in February 2026, establishing a general framework for the project’s development based on the company’s stated principles of transparency and mutual benefit.
Sources
Editorial Disclosure
This article is based on a press release issued by New Pacific Metals Corp. on September 3, 2026, distributed via PRNewswire. Securities discussed: New Pacific Metals Corp. (TSX: NUAG; NYSE-A: NEWP). Mining Markets Report has not received compensation from New Pacific Metals, its management, investor relations representatives, or any third party for this coverage. No staff member or principal of Mining Markets Report holds a position in this security at the time of publication. The Administrative Mining Contracts referenced in this article have been signed but have not yet been ratified by Bolivia’s Plurinational Legislative Assembly; there is no assurance ratification will occur. The Preliminary Economic Assessment referenced is preliminary in nature, based in part on Inferred Mineral Resources, and there is no certainty its results will be achieved. Approximately 1.85% of the mineral resources included in the PEA’s economic analysis sit on concessions held by the Bolivian state that the company does not currently control; there is no assurance the company will obtain these concessions or reach an acceptable mining agreement for them. Bolivia has recently experienced social and political unrest, including a government-declared state of emergency, which the company itself has identified as a risk to project assumptions. Statements regarding permitting timelines, project development, financial projections, and the PEA’s results are forward-looking and involve known and unknown risks; actual results may differ materially. References to this company are for market context and analytical purposes only and do not constitute an investment recommendation. All securities carry investment risk including possible loss of capital. Coverage on Mining Markets Report is for informational and educational purposes only; Mining Markets Report is not a registered investment advisor. Readers should conduct their own due diligence and consult a qualified financial advisor before making investment decisions.
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