EX-99.1 2 tm2530563d1_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

 

Unaudited Condensed CONSOLIDATED interim FINANCIAL STATEMENTS

 

For the three months ended September 30, 2025 and 2024

 

(Expressed in United States Dollars)

 

 

 

 

New Pacific Metals Corp.

Unaudited Condensed Consolidated Interim Statements of Financial Position

(Expressed in US dollars)

 

   Notes   September 30, 2025   June 30, 2025 
ASSETS              
Current Assets              
Cash and cash equivalents  12   $15,716,117   $16,839,959 
Receivables       28,078    21,467 
Deposits and prepayments       470,534    232,743 
        16,214,729    17,094,169 
               
Non-current Assets              
Equity investments       66,177    54,020 
Property, plant and equipment  4    1,085,647    1,132,797 
Mineral property interests  5    117,285,570    116,934,365 
TOTAL ASSETS      $134,652,123   $135,215,351 
               
LIABILITIES AND EQUITY              
Current Liabilities              
Accounts payable and accrued liabilities  6   $1,240,334   $835,763 
Due to a related party  7    95,970    91,687 
        1,336,304    927,450 
Total Liabilities       1,336,304    927,450 
               
Equity              
Share capital  8    184,022,694    183,315,257 
Share-based payment reserve       20,387,726    20,676,968 
Accumulated other comprehensive income       8,053,105    8,697,745 
Deficit       (79,147,706)   (78,402,069)
Total equity attributable to the equity holders of the Company       133,315,819    134,287,901 
Total Equity       133,315,819    134,287,901 
               
TOTAL LIABILITIES AND EQUITY      $134,652,123   $135,215,351 

 

Approved on behalf of the Board:  
   
(Signed) Maria Tang  
Director  
   
(Signed) Jalen Yuan  
CEO  

 

See accompanying notes to the unaudited condensed consolidated interim financial statements

 

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New Pacific Metals Corp.

Unaudited Condensed Consolidated Interim Statements of Loss

(Expressed in US dollars)

 

       Three months ended September 30, 
   Notes   2025   2024 
Operating expense              
Project evaluation and corporate development      $(14,619)  $(10,440)
Depreciation  4    (47,090)   (49,938)
Filing and listing       (74,745)   (103,318)
Investor relations       (94,174)   (166,257)
Professional fees       (92,981)   (109,793)
Salaries and benefits       (432,582)   (407,392)
Office and administration       (235,815)   (302,415)
Share-based compensation  8(b)   (324,826)   (459,928)
        (1,316,832)   (1,609,481)
              
Other income              
Income from investments  3   $114,051   $250,298 
Foreign exchange gain       457,144    100,175 
        571,195    350,473 
               
Net loss      $(745,637)  $(1,259,008)
               
Attributable to:              
Equity holders of the Company      $(745,637)  $(1,257,633)
Non-controlling interests       -    (1,375)
Net loss      $(745,637)  $(1,259,008)
               
Loss per share attributable to the equity holders of the Company              
Loss per share - basic and diluted      $(0.004)  $(0.01)
Weighted average number of common shares - basic and diluted       172,047,125    171,416,183 

 

See accompanying notes to the unaudited condensed consolidated interim financial statements

 

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New Pacific Metals Corp.

Unaudited Condensed Consolidated Interim Statements of Comprehensive Loss

(Expressed in US dollars)

 

       Three months ended September 30, 
   Notes   2025   2024 
Net loss      $(745,637)  $(1,259,008)
Other comprehensive loss, net of taxes:             
Items that may subsequently be reclassified to net loss:             
Currency translation adjustment, net of tax of $nil      (644,640)   654,836 
Other comprehensive (loss) income, net of taxes     $(644,640)  $654,836 
              
Attributable to:              
Equity holders of the Company      $(644,640)  $651,021 
Non-controlling interests       -    3,815 
Other comprehensive (loss) income, net of taxes      $(644,640)  $654,836 
Total comprehensive loss, net of taxes      $(1,390,277)  $(604,172)
               
Attributable to:              
Equity holders of the Company      $(1,390,277)  $(606,612)
Non-controlling interests       -    2,440 
Total comprehensive loss, net of taxes      $(1,390,277)  $(604,172)

 

See accompanying notes to the unaudited condensed consolidated interim financial statements 

 

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New Pacific Metals Corp.

Unaudited Condensed Consolidated Interim Statements of Cash Flows

(Expressed in US dollars)

 

       Three months ended September 30, 
   Notes   2025   2024 
Operating activities              
Net loss      $(745,637)  $(1,259,008)
Add (deduct) items not affecting cash:              
Income from investments  3    (114,051)   (250,298)
Depreciation  4    47,090    49,938 
Share-based compensation  8(b)   324,826    459,928 
Foreign exchange gain       (457,144)   (100,175)
Changes in non-cash operating working capital  12    172,017    188,897 
Interest received  3    100,673    264,596 
Net cash used in operating activities       (672,226)   (646,122)
               
Investing activities              
Mineral property interest              
Capital expenditures       (703,850)   (872,724)
Property, plant and equipment              
Additions       -    (3,464)
Net cash used in investing activities       (703,850)   (876,188)
               
Financing activities              
Proceeds from issuance of common shares for option exercised       92,409    - 
Net cash provided by financing activities       92,409    - 
Effect of exchange rate changes on cash       159,825    527,986 
               
Decrease in cash       (1,123,842)   (994,324)
Cash and cash equivalents, beginning of the period       16,839,959    21,950,211 
Cash and cash equivalents, end of the period      $15,716,117   $20,955,887 
Supplementary cash flow information  12           

 

See accompanying notes to the unaudited condensed consolidated interim financial statements

 

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New Pacific Metals Corp.

Unaudited Condensed Consolidated Interim Statements of Change in Equity

(Expressed in US dollars)

 

       Share capital                         
   Notes   Number of
common
shares issued		   Amount   Share-based
payment
reserve		   Accumulated other
comprehensive
income (loss)		   Deficit   Total equity
attributable to the
equity holders of
the Company		   Non-
controlling
interests		   Total equity 
Balance, July 1, 2024       171,299,119   $182,010,834   $19,931,083   $9,311,400   $(74,645,012)  $136,608,305   $(156,366)  $136,451,939 
Restricted share units vested       180,827    354,527    (354,527)   -    -    -    -    - 
Share-based compensation       -    -    671,732    -    -    671,732    -    671,732 
Net income       -    -    -    -    (1,257,633)   (1,257,633)   (1,375)   (1,259,008)
Currency translation adjustment       -    -    -    651,021    -    651,021    3,815    654,836 
Balance, September 30, 2024       171,479,946    182,365,361    20,248,288    9,962,421    (75,902,645)   136,673,425    (153,926)   136,519,499 
Options exercised       4,167    8,641    (2,294)   -    -    6,347    -    6,347 
Restricted share units vested       420,188    941,255    (941,255)   -    -    -    -    - 
Share-based compensation       -    -    1,372,229    -    -    1,372,229    -    1,372,229 
Disposal upon wind-up of a subsidiary       -    -    -    -         -    296,065    296,065 
Net income       -    -    -    -    (2,499,424)   (2,499,424)   (21,790)   (2,521,214)
Currency translation adjustment       -    -    -    (1,264,676)   -    (1,264,676)   (120,349)   (1,385,025)
Balance, June 30, 2025       171,904,301    183,315,257    20,676,968    8,697,745    (78,402,069)   134,287,901    -    134,287,901 
Options exercised  8(b)(i)   65,222    128,896    (36,487)   -    -    92,409    -    92,409 
Restricted share units distributed  8(b)(ii)   317,682    578,541    (578,541)   -    -    -    -    - 
Share-based compensation  8(b)   -    -    325,786    -    -    325,786    -    325,786 
Net loss       -    -    -    -    (745,637)   (745,637)   -    (745,637)
Currency translation adjustment       -    -    -    (644,640)   -    (644,640)   -    (644,640)
Balance, September 30, 2025       172,287,205   $184,022,694   $20,387,726   $8,053,105   $(79,147,706)  $133,315,819   $-   $133,315,819 

 

See accompanying notes to the unaudited condensed consolidated interim financial statements

 

Page | 5

 

 

New Pacific Metals Corp. 

Notes to the Unaudited Condensed Consolidated Interim Financial Statements for the three months ended September 30, 2025 and 2024

(Expressed in US dollars)

 

1.CORPORATE INFORMATION

 

New Pacific Metals Corp. along with its subsidiaries (collectively, the “Company” or “New Pacific”) is a Canadian mining issuer engaged in exploring and developing mineral properties in Bolivia. The Company is in the stage of exploring and advancing the development of its mineral properties and has not yet determined if they contain economically recoverable mineral reserves. The underlying value and the recoverability of the amounts shown for mineral property interests are entirely dependent upon the existence of recoverable mineral reserves, the ability of the Company to obtain the necessary financing to complete the exploration and development of the mineral properties, and future profitable production or proceeds from the disposition of the mineral property interests.

 

The Company is publicly listed on the Toronto Stock Exchange (“TSX”) under the symbol “NUAG” and on the NYSE American stock exchange (“NYSE-A”) under the symbol “NEWP”. The head office, registered address and records office of the Company are located at 1066 Hastings Street, Suite 1750, Vancouver, British Columbia, Canada, V6E 3X1.

 

2.MATERIAL ACCOUNTING POLICY INFORMATION

 

(a)Statement of Compliance and Basis of Preparation

 

These unaudited condensed consolidated interim financial statements have been prepared in accordance with IAS 34 – Interim Financial Reporting as issued by the International Accounting Standards Board (IASB). These unaudited condensed consolidated interim financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the year ended June 30, 2025. These unaudited condensed consolidated interim financial statements follow the same accounting policies, estimates and judgements set out in Note 2 to the audited consolidated financial statements for the year ended June 30, 2025.

 

These unaudited condensed consolidated interim financial statements have been prepared on a going concern basis.

 

The unaudited condensed consolidated interim financial statements of the Company as at and for the three month ended September 30, 2025 and 2024 were approved and authorized for issuance in accordance with a resolution of the Board of Directors (the “Board”) dated on November 6, 2025.

 

(b)Basis of Consolidation

 

These unaudited condensed consolidated interim financial statements include the accounts of the Company and its wholly or partially owned subsidiaries.

 

Subsidiaries are consolidated from the date on which the Company obtains control up to the date of the disposition of control. Control is achieved when the Company has power over the subsidiary, is exposed or has rights to variable returns from its involvement with the subsidiary; and has the ability to use its power to affect its returns.

 

Balances, transactions, income and expenses between the Company and its subsidiaries are eliminated on consolidation.

 

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New Pacific Metals Corp.

Notes to the Unaudited Condensed Consolidated Interim Financial Statements for the three months ended September 30, 2025 and 2024

(Expressed in US dollars)

 

Details of the Company’s significant subsidiaries which are consolidated are as follows:

  

        Proportion of ownership interest held    
      Country of  September 30,   June 30,   Mineral
Name of subsidiaries  Principal activity  incorporation  2025   2025   properties
New Pacific Offshore Inc.  Holding company  BVI (i)   100%   100%   
SKN Nickel & Platinum Ltd.  Holding company  BVI   100%   100%   
Glory Metals Investment Corp. Limited  Holding company  Hong Kong   100%   100%   
New Pacific Investment Corp. Limited  Holding company  Hong Kong   100%   100%   
New Pacific Andes Corp. Limited  Holding company  Hong Kong   100%   100%   
Fortress Mining Inc.  Holding company  BVI   100%   100%   
New Pacific Success Inc.  Holding company  BVI   100%   100%   
New Pacific Forward Inc.  Holding company  BVI   100%   100%   
Minera Alcira S.A.  Mining company  Bolivia   100%   100%  Silver Sand
NPM Minerales S.A.  Mining company  Bolivia   100%   100%   
Colquehuasi S.R.L.  Mining company  Bolivia   100%   100%  Silverstrike
Minera Hastings S.R.L.  Mining company  Bolivia   100%   100%  Carangas

 

(i) British Virgin Islands (“BVI”)

 

(c)New IFRS Accounting Standards and interpretations not yet applied

 

IFRS 18 Presentation and Disclosure in Financial Statements (“IFRS 18”)

 

On April 9, 2024, the IASB issued IFRS 18 Presentation and Disclosure in Financial Statements. IFRS 18 will apply for reporting periods beginning on or after January 1, 2027 and also applies to comparative information. IFRS 18 will replace IAS 1; many of the other existing principles in IAS 1 are retained, with limited changes. IFRS 18 will not impact the recognition or measurement of items in the financial statements, but it may change what an entity reports as its ‘operating profit or loss’. Key new concepts introduced in IFRS 18 relate to: (i) the structure of the statement of profit or loss; (ii) required disclosures in the financial statements for certain profit or loss performance measures that are reported outside an entity’s financial statements (that is, management-defined performance measures); and (iii) enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes in general. The Company is currently assessing the effects of IFRS 18 on the financial statements.

 

IFRS 9 Financial Instruments (“IFRS 9”) and IFRS 7 Financial Instruments: Disclosures (“IFRS 7”)

 

In May 2024, the IASB issued Amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS 9 and IFRS 7). These amendments updated classification and measurement requirements in IFRS 9 Financial Instruments and related disclosure requirements in IFRS 7 Financial Instruments: Disclosures. The IASB clarified the recognition and derecognition date of certain financial assets and liabilities, and amended the requirements related to settling financial liabilities using an electronic payment system. It also clarified how to assess the contractual cash flow characteristics of financial assets in determining whether they meet the ’solely payments of principal and interest’ criterion, including financial assets that have environmental, social and corporate governance (ESG)-linked features and other similar contingent features. The IASB added disclosure requirements for financial instruments with contingent features that do not relate directly to basic lending risks and costs and amended disclosures relating to equity instruments designated at fair value through other comprehensive income. The amendments are effective for annual periods beginning on or after January 1, 2026 with early application permitted. The Company is currently assessing the effect of these amendments on the financial statements. The Company has not early adopted any new accounting standard, interpretation or amendment that has been issued but is not yet effective.

 

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New Pacific Metals Corp. 

Notes to the Unaudited Condensed Consolidated Interim Financial Statements for the three months ended September 30, 2025 and 2024

(Expressed in US dollars)

 

3.INCOME FROM INVESTMENTS

 

Income from investments consist of:

 

   Three months ended September 30, 
   2025   2024 
Fair value change on equity investments  $13,378   $(2,700)
Fair value change on bonds   -    (11,598)
Interest income   100,673    264,596 
Income from investments  $114,051   $250,298 

 

4.PROPERTY, PLANT AND EQUIPMENT

 

Cost  Land and
building		   Machinery   Motor vehicles   Office equipment
and furniture		   Computer
software		   Total 
Balance, June 30, 2024  $630,000   $457,659   $486,490   $369,528   $90,461    2,034,138 
Additions   -    67,748    -    17,372    -    85,120 
Foreign currency translation impact   -    -    -    306    292    598 
Balance, June 30, 2025  $630,000   $525,407   $486,490   $387,206   $90,753   $2,119,856 
Additions   -    -    -    -    -    - 
Foreign currency translation impact   -    -    -    (1,904)   (1,812)   (3,716)
Balance, September 30, 2025  $630,000   $525,407   $486,490   $385,302   $88,941   $2,116,140 
                               
Accumulated depreciation and amortization                              
Balance, June 30, 2024  $-   $(231,594)  $(280,622)  $(197,605)  $(79,787)  $(789,608)
Depreciation   -    (62,280)   (79,251)   (44,539)   (10,469)   (196,539)
Foreign currency translation impact   -    -    -    (415)   (497)   (912)
Balance, June 30, 2025  $-   $(293,874)  $(359,873)  $(242,559)  $(90,753)  $(987,059)
Depreciation   -    (18,425)   (18,562)   (10,103)   -    (47,090)
Foreign currency translation impact   -    -    -    1,844    1,812    3,656 
Balance, September 30, 2025  $-   $(312,299)  $(378,435)  $(250,818)  $(88,941)  $(1,030,493)
                               
Carrying amount                              
Balance, June 30, 2025  $630,000   $231,533   $126,617   $144,647   $-   $1,132,797 
Balance, September 30, 2025  $630,000   $213,108   $108,055   $134,484   $-   $1,085,647 

 

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New Pacific Metals Corp.

Notes to the Unaudited Condensed Consolidated Interim Financial Statements for the three months ended September 30, 2025 and 2024

(Expressed in US dollars)

 

5.MINERAL PROPERTY INTERESTS

 

(a)Silver Sand Project

 

On July 20, 2017, the Company acquired the Silver Sand Project. The Project is located in the Colavi District of the Potosí Department, in Southwestern Bolivia, 33 kilometres (“km”) northeast of Potosí City, the department capital. The project covers an area of approximately 5.42 km2 at an elevation of 4,072 metres (“m”) above sea level.

 

For the three months ended September 30, 2025, total expenditures of $513,274 (three months ended September 30, 2024 - $517,107) were capitalized under the project.

 

(b)Carangas Project

 

In April 2021, the Company signed an agreement with a private Bolivian company to acquire a 98% interest in the Carangas Project. The project is located approximately 180 km southwest of the city of Oruro and within 50 km from Bolivia’s border with Chile. The private Bolivian company is 100% owned by Bolivian nationals and holds title to the three exploration licenses that cover an area of 40.75 km2.

 

Under the agreement, the Company is required to cover 100% of the future expenditures on exploration, mining, development, and production activities for the project.

 

For the three months ended September 30, 2025, total expenditures of $173,583 (three months ended September 30, 2024 - $363,221) were capitalized under the project.

 

(c)Silverstrike Project

 

In December 2019, the Company acquired a 98% interest in the Silverstrike Project from a private Bolivian corporation. The project covers an area of approximately 13 km2 and is located approximately 140 km southwest of the city of La Paz, Bolivia.

 

For the three months ended September 30, 2025, total expenditures of $15,472 (three months ended September 30, 2024 - $26,143) were capitalized under the project.

 

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New Pacific Metals Corp. 

Notes to the Unaudited Condensed Consolidated Interim Financial Statements for the three months ended September 30, 2025 and 2024

(Expressed in US dollars)

 

The continuity schedule of mineral property acquisition costs and deferred exploration and development costs is summarized as follows:

 

Cost  Silver Sand   Carangas   Silverstrike   Total 
Balance, June 30, 2024  $88,977,334   $19,854,042   $4,934,555   $113,765,931 
Capitalized exploration expenditures                    
Reporting and assessment   94,894    190,352    -    285,246 
Drilling and assaying   342    6,763    5,125    12,230 
Project management and support   1,155,235    889,034    37,828    2,082,097 
Camp service   179,873    295,804    17,033    492,710 
Permit and license   12,606    47,818    -    60,424 
Value added tax not claimed   109,086    44,020    2,046    155,152 
Foreign currency impact   51,499    26,018    3,058    80,575 
Balance, June 30, 2025  $90,580,869   $21,353,851   $4,999,645   $116,934,365 
Capitalized exploration expenditures                    
Reporting and assessment   729    -    -    729 
Drilling and assaying   -    -    589    589 
Project management and support   330,707    117,372    12,206    460,285 
Camp service   145,246    35,826    2,476    183,548 
Permit and license   32    15,860    -    15,892 
Value added tax not claimed   36,560    4,525    201    41,286 
Foreign currency impact   (256,263)   (76,785)   (18,076)   (351,124)
Balance, September 30, 2025  $90,837,880   $21,450,649   $4,997,041   $117,285,570 

 

6.TRADE AND OTHER PAYABLES

 

Trade and other payables consist of:

 

   September 30, 2025   June 30, 2025 
Trade payable  $523,655   $242,492 
Accrued liabilities   716,679    593,271 
   $1,240,334   $835,763 

 

7.RELATED PARTY TRANSACTIONS

 

Related party transactions are made on terms agreed upon by the related parties. The balances with related parties are unsecured, non-interest bearing, and due on demand. Related party transactions not disclosed elsewhere, if any, in the consolidated financial statements are as follows:

 

Due to a related party  September 30, 2025   June 30, 2025 
Silvercorp Metals Inc.  $95,970   $91,687 

 

(a)            Silvercorp Metals Inc. (“Silvercorp”) has one director and one officer (June 30, 2025 – one director and one officer) in common with the Company. Silvercorp and the Company share office space and Silvercorp provides various general and administrative services to the Company. The Company expects to continue making payments to Silvercorp in the normal course of business. Office and administrative expenses rendered and incurred by Silvercorp on behalf of the Company for the three months ended September 30, 2025 were $208,463 (three months ended September 30, 2024 - $217,659).

 

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New Pacific Metals Corp. 

Notes to the Unaudited Condensed Consolidated Interim Financial Statements for the three months ended September 30, 2025 and 2024

(Expressed in US dollars)

 

(b)Compensation of key management personnel

 

The remuneration of directors and other members of key management personnel for the three months ended September 30, 2025 and 2024 are as follows:

 

   Three months ended September 30, 
   2025   2024 
Director’s cash compensation  $16,336   $16,494 
Director’s share-based compensation   137,653    120,070 
Key management’s cash compensation   97,067    165,967 
Key management’s share-based compensation   108,072    264,575 
   $359,128   $567,106 

 

Other than as disclosed above, the Company does not have any ongoing contractual or other commitments resulting from transactions with related parties.

 

8.SHARE CAPITAL

 

(a)  Share Capital - authorized share capital

 

The Company’s authorized share capital consists of an unlimited number of common shares without par value.

 

(b)  Share-based compensation

 

The Company has a share-based compensation plan (the “Plan”) under which the Company may issue stock options and restricted share units (“RSUs”). The maximum number of common shares to be reserved for issuance on any share-based compensation under the Plan is a rolling 10% of the issued and outstanding common shares from time to time.

 

For the three months ended September 30, 2025, a total of $324,826 (three months ended September 30, 2024 - $459,928) was recorded as share-based compensation expense.

 

For the three months ended September 30, 2025, a total of $960 (three months ended September 30, 2024 – $211,804) was capitalized under mineral property interests.

 

(i)Stock options

 

The continuity schedule of stock options, as at September 30, 2025, is as follows:

 

   Number of options   Weighted average exercise
price (CAD$)		 
Balance, July 1, 2024   3,773,000   $3.11 
Options granted   1,810,333    1.58 
Options exercised   (4,167)   2.10 
Options forfeited   (883,166)   2.26 
Balance, June 30, 2025   4,696,000   $2.68 
Options exercised   (65,222)   1.96 
Options forfeited   (165,834)   2.36 
Balance, September 30, 2025   4,464,944   $2.70 

 

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New Pacific Metals Corp.

Notes to the Unaudited Condensed Consolidated Interim Financial Statements for the three months ended September 30, 2025 and 2024

(Expressed in US dollars)

 

The following table summarizes information about stock options outstanding as at September 30, 2025:

 

    Number of options   Weighted   Number of options   Weighted 
Exercise   outstanding as at   average remaining   exercisable as at   average 
prices (CAD$)   September 30, 2025   contractual life (years)   September 30, 2025   exercise price (CAD$) 
$1.58    1,335,444    4.37    220,580   $1.58 
 2.10    946,500    3.30    464,000    2.10 
 3.33    518,000    1.35    518,000    3.33 
 3.42    707,000    2.30    593,333    3.42 
 3.67    20,000    2.32    16,667    3.67 
 3.89    10,000    1.40    10,000    3.89 
 3.92    20,000    2.54    13,333    3.92 
 4.00    908,000    1.68    908,000    4.00 
 $1.58 - $4.00    4,464,944    2.89    2,743,913   $3.23 

 

Subsequent to September 30, 2025, a total of 48,667 options were exercised with an average exercise price of CAD $3.06 and 60,000 options were forfeited with an average exercise price of CAD $3.89.

 

(ii)RSUs

 

The continuity schedule of RSUs, as at September 30, 2025, is as follows:

 

   Number of shares   Weighted average grant
date closing  price per
share (CAD$)		 
Balance, June 30, 2024   2,127,214   $2.94 
Granted   1,139,333    1.58 
Forfeited   (476,666)   2.07 
Distributed   (601,015)   3.02 
Balance, June 30, 2025   2,188,866   $2.40 
Forfeited   (89,833)   2.01 
Distributed   (317,682)   2.51 
Balance, September 30, 2025   1,781,351   $2.40 

 

Subsequent to September 30, 2025, a total of 15,333 RSUs were vested and distributed.

 

(c)Bought deal financing

 

Subsequent to September 30, 2025, the Company successfully closed a bought deal financing to issue a total of 11,385,000 common shares at a price of $2.53 (CAD $3.55) per common share for gross proceeds of $28,823,813 (CAD $40,416,750).

 

9.FINANCIAL INSTRUMENTS

 

The Company manages its exposure to financial risks, including liquidity risk, foreign exchange rate risk, interest rate risk, credit risk, and equity price risk in accordance with its risk management framework. The Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management framework and reviews the Company’s policies on an ongoing basis.

 

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New Pacific Metals Corp. 

Notes to the Unaudited Condensed Consolidated Interim Financial Statements for the three months ended September 30, 2025 and 2024

(Expressed in US dollars)

 

(a)Fair Value

 

The Company classifies its fair value measurements within a fair value hierarchy, which reflects the significance of inputs used in making the measurements as defined in IFRS 13 – Fair Value Measurement (“IFRS 13”).

 

Level 1 – Unadjusted quoted prices at the measurement date for identical assets or liabilities in active markets.

 

Level 2 – Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

 

Level 3 – Unobservable inputs which are supported by little or no market activity.

 

The following table sets forth the Company’s financial assets that are measured at fair value on a recurring basis by level within the fair value hierarchy as at September 30, 2025 and June 30, 2025 that are not otherwise disclosed. As required by IFRS 13, financial assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

 

   Fair value as at September 30, 2025 
Recurring measurements  Level 1   Level 2   Level 3   Total 
Financial Assets                    
Cash and cash equivalent  $15,716,117   $-   $-   $15,716,117 
Equity investments   66,177    -    -    66,177 
                     
    Fair value as at June 30, 2025 
Recurring measurements  Level 1   Level 2   Level 3   Total 
Financial Assets                    
Cash and cash equivalent  $16,839,959   $-   $-   $16,839,959 
Equity investments   54,020    -    -    54,020 

 

Fair value of other financial instruments excluded from the table above approximates their carrying amount as of September 30, 2025, and June 30, 2025, respectively, due to the short-term nature of these instruments.

 

There were no transfers into or out of Level 1, 2, or 3 during the three months ended September 30,2025.

 

(b)Liquidity Risk

 

The Company has a history of losses and no operating revenues from its operations. Liquidity risk is the risk that the Company will not be able to meet its short term business requirements. As at September 30, 2025, the Company had a working capital position of $14,878,425 and sufficient cash resources to meet the Company’s short-term financial liabilities and its planned exploration and development expenditures on various projects in Bolivia for, but not limited to, the next 12 months.

 

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New Pacific Metals Corp.

Notes to the Unaudited Condensed Consolidated Interim Financial Statements for the three months ended September 30, 2025 and 2024

(Expressed in US dollars)

 

In the normal course of business, the Company may enter into contracts that give rise to commitments for future minimum payments. The following summarizes the remaining contractual maturities of the Company’s financial liabilities:

 

   September 30, 2025   June 30, 2025 
   Due within a year   Total   Total 
Accounts payable and accrued liabilities  $1,240,334   $1,240,334   $835,763 
Due to a related party   95,970    95,970    91,687 
   $1,336,304   $1,336,304   $927,450 

 

(c) Foreign Exchange Risk

 

The Company is exposed to foreign exchange risk when it undertakes transactions and holds assets and liabilities denominated in foreign currencies other than its functional currencies. The functional currency of the head office, Canadian subsidiaries and all intermediate holding companies is CAD. The functional currency of all Bolivian subsidiaries is USD. The Company currently does not engage in foreign exchange currency hedging. The Company’s exposure to foreign exchange risk that could affect net income is summarized as follows:

 

Financial assets denominated in foreign currencies other than relevant functional currency  September 30, 2025   June 30, 2025 
United States dollars  $642,038   $650,984 
Bolivianos   1,428,570    1,024,674 
Total  $2,070,608   $1,675,658 
           
Financial liabilities denominated in foreign currencies other than relevant functional currency          
United States dollars  $116,351   $133,275 
Bolivianos   455,254    459,472 
Total  $571,605   $592,747 

 

As at September 30, 2025, with other variables unchanged, a 1% strengthening (weakening) of the USD against the CAD would have increased (decreased) net income by approximately $5,257.

 

As at September 30, 2025, with other variables unchanged, a 1% strengthening (weakening) of the Bolivianos against the USD would have increased (decreased) net income by approximately $9,733.

 

(d) Interest Rate Risk

 

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market interest rates. The Company holds a portion of cash in bank accounts that earn variable interest rates. Due to the short-term nature of these financial instruments, fluctuations in market rates do not have significant impact on the fair values of the financial instruments as of September 30, 2025. The Company, from time to time, also owns cashable guaranteed investment certificates (“GICs”) and bonds that earn interest payments at fixed rates to maturity. Fluctuation in market interest rates usually will have an impact on bond’s fair value. An increase in market interest rates will generally reduce bond’s fair value while a decrease in market interest rates will generally increase it. The Company monitors market interest rate fluctuations closely and adjusts the investment portfolio accordingly.

 

Page | 14

 

 

New Pacific Metals Corp. 

Notes to the Unaudited Condensed Consolidated Interim Financial Statements for the three months ended September 30, 2025 and 2024

(Expressed in US dollars)

 

(e) Credit Risk

 

Credit risk is the risk of financial loss to the Company if the counterparty to a financial instrument fails to meet its contractual obligations. The Company’s exposure to credit risk is primarily associated with cash and cash equivalents, bonds, and receivables. The carrying amount of financial assets included on the statement of financial position represents the maximum credit exposure.

 

The Company has deposits of cash and cash equivalent that meet minimum requirements for quality and liquidity as stipulated by the Board. Management believes the risk of loss to be remote, as the majority of its cash and cash equivalent is held with major financial institutions. Bonds by nature are exposed to more credit risk than cash and cash equivalent. The Company manages its risk associated with bonds by only investing in large globally recognized corporations from diversified industries. As at September 30, 2025, the Company had a receivables balance of $28,078 (June 30, 2025 - $21,467).

 

(f) Equity Price Risk

 

The Company holds certain marketable security that will fluctuate in value as a result of trading on global financial markets. Based upon the Company’s portfolio at September 30, 2025, a 10% increase (decrease) in the market price of the security held, ignoring any foreign exchange effects would have resulted in an increase (decrease) to net income of approximately $6,620.

 

10.CAPITAL MANAGEMENT

 

The objectives of the capital management policy are to safeguard the Company’s ability to support exploration and operating requirements on an ongoing basis, continue the investment in high quality assets along with safeguarding the value of its mineral properties, and support any expansionary plans.

 

The capital of the Company consists of the items included in equity less cash, cash equivalents and short-term investments. Risk and capital management are primarily the responsibility of the Company’s corporate finance function and is monitored by the Board. The Company manages the capital structure and makes adjustments depending on economic conditions. Significant risks are monitored and actions are taken, when necessary, according to the Company’s approved policies.

 

11.SEGMENTED INFORMATION

 

As at and for the three months ended September 30, 2025, the Company operates in four (as at and for the three months ended September 30, 2024 – four) reportable operating segments, one being the corporate segment; the other three being the exploration and development segments based on mineral properties in Bolivia. These reportable segments are components of the Company where separate financial information is available that is evaluated regularly by the Company’s Chief Executive Officer, the chief operating decision maker (“CODM”).

 

Page | 15

 

 

New Pacific Metals Corp.

Notes to the Unaudited Condensed Consolidated Interim Financial Statements for the three months ended September 30, 2025 and 2024

(Expressed in US dollars)

 

(a)Segment information for assets and liabilities are as follows:

 

   September 30, 2025 
      Exploration and Development    
   Corporate   Silver Sand   Carangas   Silverstrike   Total 
Cash and cash equivalents  $14,999,278   $453,379   $262,458   $1,002   $15,716,117 
Equity investments   66,177    -    -    -    66,177 
Plant and equipment   145,380    258,557    44,891    636,819    1,085,647 
Mineral property interests   -    90,837,880    21,450,649    4,997,041    117,285,570 
Other assets   474,007    13,432    11,173    -    498,612 
Total Assets  $15,684,842  $91,563,248   $21,769,171   $5,634,862   $134,652,123 
                          
Total Liabilities  $(1,139,184)  $(190,892)  $(6,044)  $(184)  $(1,336,304)
                          
    June 30, 2025 
       Exploration and Development    
    Corporate   Silver Sand   Carangas   Silverstrike   Total 
Cash and cash equivalents  $16,341,420   $288,480   $210,194   $(135)  $16,839,959 
Equity investments   54,020    -    -    -    54,020 
Plant and equipment   153,455    291,060    50,326    637,956    1,132,797 
Mineral property interests   -    90,580,869    21,353,851    4,999,645    116,934,365 
Other assets   213,270    27,903    13,037    -    254,210 
Total Assets  $16,762,165  $91,188,312   $21,627,408   $5,637,466   $135,215,351 
                          
Total Liabilities  $(685,596)  $(221,140)  $(20,585)  $(129)  $(927,450)

 

Page | 16

 

 

New Pacific Metals Corp.

Notes to the Unaudited Condensed Consolidated Interim Financial Statements for the three months ended September 30, 2025 and 2024

(Expressed in US dollars)

 

(b)Segment information for operating results are as follows:

  

   Three months ended September 30, 2025 
      Exploration and Development    
   Corporate   Silver Sand   Carangas   Silverstrike   Total 
Project evaluation and corporate development  $(14,619)  $-   $-   $-   $(14,619)
Salaries and benefits   (432,582)   -    -    -    (432,582)
Share-based compensation   (324,826)   -    -    -    (324,826)
Other operating expenses   (425,650)   (93,597)   (23,678)   (1,880)   (544,805)
Total operating expense   (1,197,677)   (93,597)   (23,678)   (1,880)   (1,316,832)
                          
Income from investments   114,051    -    -    -    114,051 
Foreign exchange gain   146,947    231,507    78,690    -    457,144 
Net (loss) income  $(936,679)  $137,910   $55,012   $(1,880)  $(745,637)
                          
Attributed to:                         
Equity holders of the Company  $(936,679)  $137,910   $55,012   $(1,880)  $(745,637)
Non-controlling interests   -    -    -    -    - 
Net (loss) income  $(936,679)  $137,910   $55,012   $(1,880)  $(745,637)
                          
   Three months ended September 30, 2024 
      Exploration and Development    
   Corporate   Silver Sand   Carangas   Silverstrike   Total 
Project evaluation and corporate development  $(8,303 )  $(2,137)  $-   $-   $(10,440)
Salaries and benefits   (407,392 )   -    -    -    (407,392)
Share-based compensation   (459,928 )   -    -    -    (459,928)
Other operating expenses   (605,261 )   (115,888)   (7,808)   (2,764)   (731,721)
Total operating expense   (1,480,884 )   (118,025)   (7,808)   (2,764)   (1,609,481)
                           
Income from investments   250,298     -    -    -    250,298 
Foreign exchange gain   68,715     17,264    14,194    2    100,175 
Net loss  $(1,161,871 )  $(100,761)  $6,386   $(2,762)  $(1,259,008)
                           
Attributed to:                          
Equity holders of the Company  $(1,160,496 )  $(100,761)  $6,386   $(2,762)  $(1,257,633)
Non-controlling interests   (1,375 )   -    -    -    (1,375)
Net loss  $(1,161,871 )  $(100,761)  $6,386   $(2,762)  $(1,259,008)

 

Page | 17

 

 

New Pacific Metals Corp.

Notes to the Unaudited Condensed Consolidated Interim Financial Statements for the three months ended September 30, 2025 and 2024

(Expressed in US dollars)

 

12.SUPPLEMENTARY CASH FLOW INFORMATION

  

   Three months ended September 30, 
Changes in non-cash operating working capital:  2025   2024 
Receivables  $(6,870)  $21,349 
Deposits and prepayments   (244,265)   (123,668)
Accounts payable and accrued liabilities   416,972    262,250 
Due to a related party   6,180    28,966 
   $172,017   $188,897 
           
    Three months ended September 30, 
Non-cash capital transactions:   2025    2024 
Reduction of capital expenditures of mineral property interest in accounts payable and accrued liabilities  $(2,481)  $(178,055)
           
Cash  and cash equivalents:  September 30, 2025   June 30, 2025 
Cash on hand and at bank  $7,000,081   $8,007,009 
Cash equivalents   8,716,036    8,832,950 
   $15,716,117   $16,839,959 

 

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