EX-99.1 2 exhibit99-1.htm NEW PACIFIC METALS CORP FINANCIAL STATEMENTS FOR THE PERIOD ENDED DECEMBER 31, 2024 Exhibit 99.1

Exhibit 99.1

 

 

 

 

 

 

 

 

 

Unaudited Condensed CONSOLIDATED interim FINANCIAL STATEMENTS

For the three and six months ended December 31, 2024 and 2023

(Expressed in United States Dollars)

 

 

 

 

New Pacific Metals Corp.

Unaudited Condensed Consolidated Interim Statements of Financial Position

(Expressed in US dollars)

 

   Notes  December 31,
2024		   June 30,
2024		 
ASSETS           
Current Assets           
Cash and cash equivalents  13  $18,061,992   $21,950,211 
Short-term investments      247,795    258,702 
Receivables      44,173    51,340 
Deposits and prepayments      318,213    338,824 
       18,672,173    22,599,077 
Non-current Assets             
Equity investments      43,537    56,539 
Property, Plant and equipment  4   1,152,068    1,244,530 
Mineral property interests  5   114,654,730    113,765,931 
TOTAL ASSETS     $134,522,508   $137,666,077 
              
LIABILITIES AND EQUITY             
Current Liabilities             
Accounts payable and accrued liabilities  6  $1,001,282   $1,163,836 
Due to a related party  7   37,825    50,302 
       1,039,107    1,214,138 
Total Liabilities      1,039,107    1,214,138 
              
Equity             
Share capital  8   182,757,685    182,010,834 
Share-based payment reserve      20,439,827    19,931,083 
Accumulated other comprehensive income      6,931,403    9,311,400 
Deficit      (76,645,514)   (74,645,012)
Total equity attributable to the equity holders of the Company      133,483,401    136,608,305 
Non-controlling interests  9   -    (156,366)
Total Equity      133,483,401    136,451,939 
              
TOTAL LIABILITIES AND EQUITY     $134,522,508   $137,666,077 

  

Approved on behalf of the Board:                    

 

(Signed) Maria Tang  
Director  
 
(Signed) Andrew Williams  
Director                      

 

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
December 31,		   Six Months Ended
December 31,		 
   Notes  2024   2023   2024   2023 
Operating expense                       
Project evaluation and corporate development     $(5,337)  $(76,553)  $(15,777)  $(189,537)
Depreciation  4   (49,782)   (54,345)   (99,720)   (104,958)
Filing and listing      (65,878)   (85,109)   (169,196)   (167,031)
Investor relations      (36,671)   (53,340)   (202,928)   (144,103)
Professional fees      (109,436)   (106,685)   (219,229)   (193,091)
Salaries and benefits      (441,926)   (650,973)   (849,318)   (1,101,112)
Office and administration      (485,940)   (379,675)   (788,355)   (712,461)
Share-based compensation  8(b)   (395,670)   (412,077)   (855,598)   (1,075,099)
       (1,590,640)   (1,818,757)   (3,200,121)   (3,687,392)
                        
Other income                       
Income from investments  3  $190,040   $275,020   $440,338   $295,294 
Gain on disposal of property, plant and equipment      -    -    -    51,418 
Foreign exchange gain      635,941    16,666    736,116    66,995 
       825,981    291,686    1,176,454    413,707 
                        
Net loss     $(764,659)  $(1,527,071)  $(2,023,667)  $(3,273,685)
                        
Attributable to:                       
Equity holders of the Company     $(742,869)  $(1,524,108)  $(2,000,502)  $(3,270,124)
Non-controlling interests  9   (21,790)   (2,963)   (23,165)   (3,561)
Net loss     $(764,659)  $(1,527,071)  $(2,023,667)  $(3,273,685)
                        
Loss per share attributable to the equity holders of the Company                       
Loss per share - basic and diluted     $(0.00)  $(0.01)  $(0.01)  $(0.02)
Weighted average number of common shares - basic and diluted      171,526,721    170,936,494    171,471,452    164,334,249 

 

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
December 31,		   Six Months Ended
December 31,		 
   Notes   2024   2023   2024   2023 
                     
Net loss      $(764,659)  $(1,527,071)  $(2,023,667)  $(3,273,685)
Other comprehensive income (loss), net of taxes:                        
Items that may subsequently be reclassified to net income (loss):                        
Currency translation adjustment, net of tax of $nil       (2,687,111)   858,251    (2,032,275)   528,380 
Items reclassified to net income:                        
Cumulative translation adjustment upon wind-up of a subsidiary       (464,256)   -    (464,256)   - 
Other comprehensive income (loss), net of taxes      $(3,151,367)  $858,251   $(2,496,531)  $528,380 
                         
Attributable to:                        
Equity holders of the Company      $(3,031,018)  $855,030   $(2,379,997)  $566,228 
Non-controlling interests  9    (120,349)   3,221    (116,534)   (37,848)
Other comprehensive income (loss), net of taxes      $(3,151,367)  $858,251   $(2,496,531)  $528,380 
Total comprehensive loss, net of taxes      $(3,916,026)  $(668,820)  $(4,520,198)  $(2,745,305)
                         
Attributable to:                        
Equity holders of the Company      $(3,773,887)  $(669,078)  $(4,380,499)  $(2,703,896)
Non-controlling interests  9    (142,139)   258    (139,699)   (41,409)
Total comprehensive loss, net of taxes      $(3,916,026)  $(668,820)  $(4,520,198)  $(2,745,305)

 

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
December 31,		   Six Months Ended
December 31,		 
   Notes  2024   2023   2024   2023 
                    
Operating activities                   
Net loss     $(764,659)  $(1,527,071)  $(2,023,667)  $(3,273,685)
Add (deduct) items not affecting cash:                       
Income from investments  3   (190,040)   (275,020)   (440,338)   (295,294)
Depreciation  4   49,782    54,345    99,720    104,958 
Gain on disposal of property, plant and equipment      -    -    -    (51,418)
Share-based compensation  8(b)   395,670    358,359    855,598    1,034,498 
Foreign exchange gain      (635,941)   (16,666)   (736,116)   (66,995)
Changes in non-cash operating working capital  13   (194,792)   (886,642)   (5,895)   (287,429)
Interest received  3   197,321    276,590    461,917    300,721 
Net cash used in operating activities      (1,142,659)   (2,016,105)   (1,788,781)   (2,534,644)
                        
Investing activities                       
Mineral property interest                       
Capital expenditures      (574,953)   (786,430)   (1,447,677)   (2,983,215)
Property, plant and equipment                       
Additions  4   (4,384)   (1,788)   (7,848)   (135,706)
Proceeds on disposals  4   -    -    -    58,776 
Net cash used in investing activities      (579,337)   (788,218)   (1,455,525)   (3,060,145)
                        
Financing activities                       
Proceeds from issuance of common shares for bought deal, net of transaction and issuance costs  8(c)   -    -    -    24,446,086 
Proceeds from issuance of common shares for option exercised      3,773    71,629    3,773    135,684 
Net cash provided by financing activities      3,773    71,629    3,773    24,581,770 
                        
Effect of exchange rate changes on cash      (1,175,672)   552,164    (647,686)   553,863 
                        
Increase (decrease) in cash      (2,893,895)   (2,180,530)   (3,888,219)   19,540,844 
                        
Cash and cash equivalent, beginning of the period      20,955,887    28,017,686    21,950,211    6,296,312 
                        
Cash and cash equivalent, end of the period     $18,061,992   $25,837,156   $18,061,992   $25,837,156 
Supplementary cash flow information  13                    

 

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       Accumulated       Total equity attributable to         
   Notes  Number of common shares issued   Amount   Share-based payment reserve   other comprehensive income (loss)   Deficit   the equity holders of the Company   Non-controlling interests   Total
equity		 
Balance, July 1, 2023      157,491,172   $155,840,052   $18,636,297   $10,227,980   $(68,623,306)  $116,081,023   $(110,137)  $115,970,886 
Options exercised  8(b)(i)   85,000    197,213    (61,529)   -    -    135,684    -    135,684 
Restricted share units distributed  8(b)(ii)   259,210    746,526    (746,526)   -    -    -    -    - 
Share-based compensation      -    -    1,194,965    -    -    1,194,965    -    1,194,965 
Common shares issued through bought deal financing  8(c)   13,208,000    24,446,086    -    -    -    24,446,086    -    24,446,086 
Net loss      -    -    -    -    (3,270,124)   (3,270,124)   (3,561)   (3,273,685)
Currency translation adjustment      -    -    -    566,228    -    566,228    (37,848)   528,380 
Balance, December 31, 2023      171,043,382   $181,229,877   $19,023,207   $10,794,208   $(71,893,430)  $139,153,862   $(151,546)  $139,002,316 
Restricted share units distributed      255,737    780,957    (780,957)   -    -    -    -    - 
Share-based compensation      -    -    1,688,833    -    -    1,688,833    -    1,688,833 
Net loss      -    -    -    -    (2,751,582)   (2,751,582)   (2,011)   (2,753,593)
Currency translation adjustment      -    -    -    (1,482,808)        (1,482,808)   (2,809)   (1,485,617)
Balance, June 30, 2024      171,299,119   $182,010,834   $19,931,083   $9,311,400   $(74,645,012)  $136,608,305   $(156,366)  $136,451,939 
Options exercised  8(b)(i)   2,500    5,086    (1,313)   -    -    3,773    -    3,773 
Restricted share units distributed  8(b)(ii)   338,594    741,765    (741,765)   -    -    -    -    - 
Share-based compensation  8(b)   -    -    1,251,822    -    -    1,251,822    -    1,251,822 
Derecognition upon wind-up of a subsidiary      -    -    -    -    -    -    296,065    296,065 
Net loss      -    -    -    -    (2,000,502)   (2,000,502)   (23,165)   (2,023,667)
Currency translation adjustment      -    -    -    (2,379,997)   -    (2,379,997)   (116,534)   (2,496,531)
Balance, December 31, 2024      171,640,213   $182,757,685   $20,439,827   $6,931,403   $(76,645,514)  $133,483,401   $-   $133,483,401 

 

See accompanying notes to the unaudited condensed consolidated interim financial statements

 

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New Pacific Metals Corp.

Notes to the Unaudited Condensed Consolidated Interim Financial Statements

for the three and six months ended December 31, 2024 and 2023

(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, 2024. 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, 2024.

 

The Company reclassified the changes in “other tax receivable” under investing activities of $50,170 and $104,466, respectively to “capital expenditures” on the Consolidated Interim Statements of Cash Flows for the three and six months comparative period ended December 31, 2023 under “mineral property interest”. The change in presentation, effective July 1, 2022, did not have an effect on the Company’s total assets, net assets, results of operations, loss per share or net cash flows.

 

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 and six months ended December 31, 2024 and 2023 were approved and authorized for issuance in accordance with a resolution of the Board of Directors (the “Board”) dated on February 5, 2025.

 

(b)Basis of Consolidation

 

These consolidated 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

 

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New Pacific Metals Corp.

Notes to the Unaudited Condensed Consolidated Interim Financial Statements

for the three and six months ended December 31, 2024 and 2023

(Expressed in US dollars)

 

to affect its returns. For non-wholly-owned subsidiaries over which the Company has control, the net assets attributable to outside equity shareholders are presented as “non-controlling interests” in the equity section of the consolidated statements of financial position. Net income or loss for the period that is attributable to the non-controlling interests is calculated based on the ownership of the non-controlling interest shareholders in the subsidiary.

 

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

 

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

  

         Proportion of ownership interest held    
      Country of  December 31,   June 30,   Mineral
Name of subsidiaries  Principal activity  incorporation  2024   2024   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
Qinghai Found Mining Co., Ltd.(ii)  Mining company  China   0%   82%   

(i) British Virgin Islands (“BVI”)

(ii) Qinghai Found Mining Co., Ltd. was wound-up on November 22, 2024

  

3.INCOME FROM INVESTMENTS

 

Income from investments consist of:

 

   Three months ended
December 31,		   Six Months Ended
December 31,		 
   2024   2023   2024   2023 
Fair value change on equity investments  $(7,972)  $(11,626)  $(10,672)  $(5,141)
Fair value change on bonds   691    10,056    (10,907)   (286)
Interest income   197,321    276,590    461,917    300,721 
Income from investments  $190,040   $275,020   $440,338   $295,294 

 

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New Pacific Metals Corp.

Notes to the Unaudited Condensed Consolidated Interim Financial Statements

for the three and six months ended December 31, 2024 and 2023

(Expressed in US dollars)

 

4.PROPERTY, PLANT AND EQUIPMENT

 

Cost  Land and building   Machinery   Motor vehicles   Office equipment and furniture   Computer software   Total 
Balance, July 1, 2023  $630,000   $485,617   $579,032   $267,275   $93,515    2,055,439 
Additions   -    1,023    -    136,171    -    137,194 
Disposals   -    -    (110,838)   (30,709)   -    (141,547)
Reclassifed among asset groups   -    (18,296)   18,296    -    -    - 
Reclassifed to mineral property interests   -    (10,685)   -    -    -    (10,685)
Foreign currency translation impact   -    -    -    (3,209)   (3,054)   (6,263)
Balance, June 30, 2024  $630,000   $457,659   $486,490   $369,528   $90,461   $2,034,138 
Additions   -    -    -    7,848    -    7,848 
Foreign currency translation impact   -    -    -    (4,636)   (4,413)   (9,049)
Balance, December 31, 2024  $630,000   $457,659   $486,490   $372,740   $86,048   $2,032,937 
                               
Accumulated depreciation and amortization                              
Balance, July 1, 2023  $-   $(170,912)  $(296,910)  $(177,284)  $(70,494)  $(715,600)
Depreciation   -    (60,682)   (94,549)   (46,349)   (11,711)   (213,291)
Disposals   -    -    110,837    23,352    -    134,189 
Foreign currency translation impact   -    -    -    2,676    2,418    5,094 
Balance, June 30, 2024  $-   $(231,594)  $(280,622)  $(197,605)  $(79,787)  $(789,608)
Depreciation   -    (30,547)   (40,147)   (23,281)   (5,745)   (99,720)
Foreign currency translation impact   -    -    -    4,336    4,123    8,459 
Balance, December 31, 2024  $-   $(262,141)  $(320,769)  $(216,550)  $(81,409)  $(880,869)
                               
Carrying amount                              
Balance, June 30, 2024  $630,000   $226,065   $205,868   $171,923   $10,674   $1,244,530 
Balance, December 31, 2024  $630,000   $195,518   $165,721   $156,190   $4,639   $1,152,068 

 

For the three and six months ended December 31, 2024, certain equipment were disposed for proceeds of $nil and $nil, respectively, (three and six months ended December 31, 2023 - $nil and $58,776, respectively) and gain of $nil and $nil, respectively (three and six months ended December 31, 2023 - $nil and $51,418, respectively).

 

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 and six months ended December 30, 2024, total expenditures of $418,680 and $935,787, respectively (three and six months ended December 31, 2023 - $413,362 and $1,379,261, respectively) 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.

 

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New Pacific Metals Corp.

Notes to the Unaudited Condensed Consolidated Interim Financial Statements

for the three and six months ended December 31, 2024 and 2023

(Expressed in US dollars)

 

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 and six months ended December 31, 2024, total expenditures of $387,175 and $750,396, respectively (three and six months ended December 31, 2023 - $321,877 and $936,734, respectively) 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 and six months ended December 31, 2024, total expenditures of $5,736 and $31,879, respectively (three and six months ended December 31, 2023 - $10,125 and $77,441, respectively) were capitalized under the project.

 

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, July 1, 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 receivable   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 
Capitalized exploration expenditures                    
Reporting and assessment   87,855    123,090    -    210,945 
Drilling and assaying   -    6,763    -    6,763 
Project management and support   670,260    511,156    21,349    1,202,765 
Camp service   115,301    67,554    9,514    192,369 
Permit and license   3,175    34,023    -    37,198 
Value added tax receivable   59,196    7,810    1,016    68,022 
Foreign currency impact   (614,287)   (171,199)   (43,777)   (829,263)
Balance, December 31, 2024   89,298,834    20,433,239    4,922,657    114,654,730 

 

6.TRADE AND OTHER PAYABLES

 

Trade and other payable consist of:

 

   December 31, 2024   June 30,
2024		 
Trade payable  $333,828   $575,268 
Accrued liabilities   667,454    588,568 
   $1,001,282   $1,163,836 

 

Page | 10

 

 

New Pacific Metals Corp.

Notes to the Unaudited Condensed Consolidated Interim Financial Statements

for the three and six months ended December 31, 2024 and 2023

(Expressed in US dollars)

 

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  December 31, 2024   June 30,
2024		 
Silvercorp Metals Inc.  $37,825   $50,302 

 

(a) Silvercorp Metals Inc. (“Silvercorp”) has one director and one officer (June 30, 2024 – one director) 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 and six months ended December 31, 2024 were $278,094 and $495,753, respectively (three and six months ended December 31, 2023 - $193,296 and $409,487, respectively).

 

(b)Compensation of key management personnel

 

The remuneration of directors and other members of key management personnel for the three and six months ended December 31, 2024 and 2023 are as follows:

 

   Three months ended
December 31,		   Six months ended
December 31,		 
   2024   2023   2024   2023 
Director’s cash compensation   $16,086   $26,892   $32,580   $42,112 
Director’s share-based compensation    108,124    118,698    228,194    258,275 
Key management’s cash compensation    113,555    289,507    279,522    585,871 
Key management’s share-based compensation   232,162    402,154    496,737    884,777 
   $469,927   $837,251   $1,037,033   $1,771,035 

 

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 and six months ended December 31, 2024, a total of $395,670 and $855,598, respectively (three and six months ended December 31, 2023 - $412,077 and $1,075,099, respectively) was recorded as share-based compensation expense.

 

Page | 11

 

 

New Pacific Metals Corp.

Notes to the Unaudited Condensed Consolidated Interim Financial Statements

for the three and six months ended December 31, 2024 and 2023

(Expressed in US dollars)

 

For the three and six months ended December 31, 2024, a total of $nil and $nil, respectively (three and six months ended December 31, 2023 – reduction of $(53,718) and $(40,604), respectively) were included in the project evaluation and corporate development expense.

 

For the three and six months ended December 31, 2024, a total of $184,421 and $396,224, respectively (three and six months ended December 31, 2023 – reduction of $(56,606) and addition of $160,467, respectively) was capitalized under mineral property interests.

 

(i)Stock options

 

The continuity schedule of stock options, as at December 31, 2024, is as follows:

 

   Number of options   Weighted average
exercise price (CAD$)		 
Balance, July 1, 2023   3,957,167   $3.37 
Options granted   1,335,000    2.10 
Options exercised   (85,000)   2.15 
Options forfeited   (745,000)   3.68 
Options expired   (689,167)   2.15 
Balance, June 30, 2024   3,773,000   $3.11 
Options exercised   (2,500)  $2.10 
Options forfeited   (35,000)   3.35 
Balance, December 31, 2024   3,735,500   $3.11 

 

The following table summarizes information about stock options outstanding as at December 31, 2024:

 

       Weighted      Weighted 
   Number of options   average remaining   Number of options   average 
Exercise
prices (CAD$)		   outstanding as at
December 31, 2024		   contractual life
(years)		   exercisable as at
December 31, 2024		   exercise price
(CAD$)		 
$2.10    1,313,500    4.04    216,834   $2.10 
 3.33    533,000    2.09    444,167    3.33 
 3.42    753,000    3.05    376,500    3.42 
 3.67    120,000    3.06    60,000    3.67 
 3.89    10,000    2.14    8,334    3.89 
 3.92    50,000    3.29    25,000    3.92 
 4.00    956,000    2.43    796,667    4.00 
$  2.10 - $4.00    3,735,500    3.11    1,927,502   $3.51 

 

Page | 12

 

 

New Pacific Metals Corp.

Notes to the Unaudited Condensed Consolidated Interim Financial Statements

for the three and six months ended December 31, 2024 and 2023

(Expressed in US dollars)

 

(ii)RSUs

 

The continuity schedule of RSUs, as at December 31, 2024, is as follows:

 

   Number of shares   Weighted average
grant date closing
price per share
(CAD$)		 
Balance, July 1, 2023   1,897,160   $3.79 
Granted   1,024,000    2.10 
Forfeited   (278,999)   3.67 
Distributed   (514,947)   4.00 
Balance, June 30, 2024   2,127,214   $2.94 
Forfeited   (10,834)   2.10 
Distributed   (338,594)   3.06 
Balance, December 31, 2024   1,777,786   $2.92 

 

Subsequent to December 31, 2024, a total of 110,586 RSUs were vested and distributed.

 

(c)Bought deal financing

 

On September 29, 2023, the Company successfully closed a bought deal financing to issue a total of 13,208,000 common shares at a price of $1.96 (CAD $2.65) per common share for gross proceeds of $25,888,462. The underwriter’s fee and other issuance costs for the transaction were $1,442,376.

 

9.NON-CONTROLLING INTEREST

 

   Qinghai Found 
Balance, July 1, 2023  $(110,137)
Share of net loss   (5,572)
Share of other comprehensive loss   (40,657)
Balance, June 30, 2024  $(156,366)
Share of net loss   (23,165)
Share of other comprehensive loss   (116,534)
Derecognition upon wind-up of a subsidiary   296,065 
Balance, December 31, 2024  $- 

 

The Company’s subsidiary Qinghai Found was wound-up on November 22, 2024. Non-controlling interest of $296,065 was derecognized upon the wind-up.

 

As at December 31, 2024, the non-controlling interest in the Company’s subsidiary Qinghai Found was 0% (June 30, 2024 - 18%).

 

10.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.

 

Page | 13

 

 

New Pacific Metals Corp.

Notes to the Unaudited Condensed Consolidated Interim Financial Statements

for the three and six months ended December 31, 2024 and 2023

(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 December 31, 2024 and June 30, 2024 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 December 31, 2024 
Recurring measurements  Level 1   Level 2   Level 3   Total 
Financial Assets                    
Cash and cash equivalent  $18,061,992   $-   $-   $18,061,992 
Short-term investment - bonds   247,795    -    -    247,795 
Equity investments   43,537    -    -    43,537 

 

   Fair value as at June 30, 2024 
Recurring measurements  Level 1   Level 2   Level 3   Total 
Financial Assets                    
Cash and cash equivalent  $21,950,211   $-   $-   $21,950,211 
Short-term investment - bonds   258,702    -    -    258,702 
Equity investments   56,539    -    -    56,539 

 

Fair value of other financial instruments excluded from the table above approximates their carrying amount as of December 31, 2024, and June 30, 2024, 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 six months ended December 31, 2024.

 

(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 December 31, 2024, the Company had a working capital position of $17,633,066 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.

 

Page | 14

 

 

New Pacific Metals Corp.

Notes to the Unaudited Condensed Consolidated Interim Financial Statements

for the three and six months ended December 31, 2024 and 2023

(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:

 

   December 31,
2024		   June 30,
2024		 
   Due within a year   Total   Total 
Accounts payable and accrued liabilities  $1,001,282   $1,001,282   $1,163,836 
Due to a related party   37,825   $37,825    50,302 
   $1,039,107   $1,039,107   $1,214,138 

 

(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 functional currency of the Chinese subsidiary is RMB. 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  December 31, 2024   June 30,
2024		 
United States dollars  $718,131   $331,138 
Bolivianos   587,760    261,353 
Total  $1,305,891   $592,491 
           
Financial liabilities denominated in foreign currencies other than relevant functional currency        
United States dollars  $54,988   $57,116 
Bolivianos   416,164    520,046 
Total  $471,152   $577,162 

  

As at December 31, 2024, with other variables unchanged, a 1% strengthening (weakening) of the USD against the CAD would have increased (decreased) net income by approximately $6,600.

 

As at December 31, 2024, with other variables unchanged, a 1% strengthening (weakening) of the Bolivianos against the USD would have increased (decreased) net income by approximately $1,700.

 

(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 December 31, 2024. 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 | 15

 

 

New Pacific Metals Corp.

Notes to the Unaudited Condensed Consolidated Interim Financial Statements

for the three and six months ended December 31, 2024 and 2023

(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 December 31, 2024, the Company had a receivables balance of $44,173 (June 30, 2024 - $51,340).

 

(f)Equity Price Risk

  

The Company holds certain marketable securities and bonds that will fluctuate in value as a result of trading on global financial markets. Based upon the Company’s portfolio at December 31, 2024, a 10% increase (decrease) in the market price of the securities held, ignoring any foreign exchange effects would have resulted in an increase (decrease) to net income of approximately $29,000.

 

11.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.

 

12.SEGMENTED INFORMATION

 

As at and for the six months ended December 31, 2024, the Company operates in four (as at and for the six months ended December 31, 2023 – 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 | 16

 

 

New Pacific Metals Corp.

Notes to the Unaudited Condensed Consolidated Interim Financial Statements

for the three and six months ended December 31, 2024 and 2023

(Expressed in US dollars)

 

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

 

   December 31, 2024 
       Exploration and Development     
   Corporate   Silver Sand   Carangas   Silverstrike   Total 
Cash and cash equivalents  $17,736,876   $204,056   $106,380   $14,680   $18,061,992 
Short-term investments   247,795    -    -    -    247,795 
Equity investments   43,537    -    -    -    43,537 
Plant and equipment   171,684    311,836    25,772    642,776    1,152,068 
Mineral property interests   -    89,298,834    20,433,239    4,922,657    114,654,730 
Other assets   344,175    6,163    10,755    1,293    362,386 
Total Assets  $18,544,067  $89,820,889   $20,576,146   $5,581,406   $134,522,508 
                          
Total Liabilities  $(834,813)  $(192,827)  $(10,804)  $(663)  $(1,039,107)

 

   June 30, 2024 
       Exploration and Development     
   Corporate   Silver Sand   Carangas   Silverstrike   Total 
Cash and cash equivalents  $21,703,189   $97,281   $73,013   $76,728   $21,950,211 
Short-term investments   258,702    -    -    -    258,702 
Equity investments   56,539    -    -    -    56,539 
Plant and equipment   191,423    374,662    30,328    648,117    1,244,530 
Mineral property interests   -    88,977,334    19,854,042    4,934,555    113,765,931 
Other assets   346,294    30,451    13,009    410    390,164 
Total Assets  $22,556,147  $89,479,728   $19,970,392   $5,659,810   $137,666,077 
                          
Total Liabilities  $(955,500)  $(171,108)  $(81,574)  $(5,956)  $(1,214,138)

  

Page | 17

 

 

New Pacific Metals Corp.

Notes to the Unaudited Condensed Consolidated Interim Financial Statements

for the three and six months ended December 31, 2024 and 2023

(Expressed in US dollars)

 

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

 

   Three months ended December 31, 2024 
       Exploration and Development     
   Corporate   Silver Sand   Carangas   Silverstrike   Total 
Project evaluation and corporate development  $(5,337)  $-   $-   $-   $(5,337)
Salaries and benefits   (441,926)   -    -    -    (441,926)
Share-based compensation   (395,670)   -    -    -    (395,670)
Other operating expenses   (659,759)   (80,673)   (3,888)   (3,387)   (747,707)
Total operating expense   (1,502,692)   (80,673)   (3,888)   (3,387)   (1,590,640)
                          
Income from investments   190,040    -    -    -    190,040 
Foreign exchange gain   570,632    50,020    15,288    1    635,941 
Net (loss) income  $(742,020)  $(30,653)  $11,400   $(3,386)  $(764,659)
                          
Attributed to:                         
Equity holders of the Company  $(720,230)  $(30,653)  $11,400   $(3,386)  $(742,869)
Non-controlling interests   (21,790)   -    -    -    (21,790)
Net (loss) income  $(742,020)  $(30,653)  $11,400   $(3,386)  $(764,659)

 

   Three months ended December 31, 2023 
       Exploration and Development     
   Corporate   Silver Sand   Carangas   Silverstrike   Total 
Project evaluation and corporate development  $(76,553)   -   $-   $-   $(76,553)
Salaries and benefits   (650,973)   -    -    -    (650,973)
Share-based compensation   (412,077)   -    -    -    (412,077)
Other operating expenses   (584,179)   (79,330)   (10,376)   (5,269)   (679,154)
Total operating expense   (1,723,782)   (79,330)   (10,376)   (5,269)   (1,818,757)
                          
Income from investments   275,020    -    -    -    275,020 
Foreign exchange gain   16,666    -    -    -    16,666 
Net loss  $(1,432,096)  $(79,330)  $(10,376)  $(5,269)  $(1,527,071)
                          
Attributed to:                         
Equity holders of the Company  $(1,429,133)  $(79,330)  $(10,376)  $(5,269)  $(1,524,108)
Non-controlling interests   (2,963)   -    -    -    (2,963)
Net loss  $(1,432,096)  $(79,330)  $(10,376)  $(5,269)  $(1,527,071)

 

Page | 18

 

 

New Pacific Metals Corp.

Notes to the Unaudited Condensed Consolidated Interim Financial Statements

for the three and six months ended December 31, 2024 and 2023

(Expressed in US dollars)

 

   Six months ended December 31, 2024 
       Exploration and Development     
   Corporate   Silver Sand   Carangas   Silverstrike   Total 
Project evaluation and corporate development  $(13,640)  $(2,137)  $-   $-   $(15,777)
Salaries and benefits   (849,318)   -    -    -    (849,318)
Share-based compensation   (855,598)   -    -    -    (855,598)
Other operating expenses   (1,265,020)   (196,561)   (11,696)   (6,151)   (1,479,428)
Total operating expense   (2,983,576)   (198,698)   (11,696)   (6,151)   (3,200,121)
                          
Income from investments   440,338    -    -    -    440,338 
Foreign exchange gain   639,347    67,284    29,482    3    736,116 
Net (loss) income  $(1,903,891)  $(131,414)  $17,786   $(6,148)  $(2,023,667)
                          
Attributed to:                         
Equity holders of the Company  $(1,880,726)  $(131,414)  $17,786   $(6,148)  $(2,000,502)
Non-controlling interests   (23,165)   -    -    -    (23,165)
Net (loss) income  $(1,903,891)  $(131,414)  $17,786   $(6,148)  $(2,023,667)

 

   Six months ended December 31, 2023 
       Exploration and Development     
   Corporate   Silver Sand   Carangas   Silverstrike   Total 
Project evaluation and corporate development  $(189,537)   -   $-   $-   $(189,537)
Salaries and benefits   (1,101,112)   -    -    -    (1,101,112)
Share-based compensation   (1,075,099)   -    -    -    (1,075,099)
Other operating expenses   (1,154,182)   (136,112)   (22,633)   (8,717)   (1,321,644)
Total operating expense   (3,519,930)   (136,112)   (22,633)   (8,717)   (3,687,392)
                          
Income from investments   295,294    -    -    -    295,294 
(Loss) gain on disposal of plant and equipment   (488)   51,906    -    -    51,418 
Foreign exchange gain   56,678    -    10,317    -    66,995 
Net loss  $(3,168,446)  $(84,206)  $(12,316)  $(8,717)  $(3,273,685)
                          
Attributed to:                         
Equity holders of the Company  $(3,164,885)  $(84,206)  $(12,316)  $(8,717)  $(3,270,124)
Non-controlling interests   (3,561)   -    -    -    (3,561)
Net loss  $(3,168,446)  $(84,206)  $(12,316)  $(8,717)  $(3,273,685)

 

13.SUPPLEMENTARY CASH FLOW INFORMATION

 

  Three months ended
December 31,		   Six Months Ended
December 31,		 
Changes in non-cash operating working capital:  2024   2023   2024   2023 
Receivables  $(15,866)  $64,428   $5,483   $85,645 
Deposits and prepayments   129,364    (14,494)   5,696    (33,798)
Accounts payable and accrued liabilities   (268,882)   (844,135)   (6,632)   (406,861)
Due to a related party   (39,408)   (92,441)   (10,442)   67,585 
   $(194,792)  $(886,642)  $(5,895)  $(287,429)

 

  Three months ended
December 31,		   Six Months Ended
December 31,		 
Non-cash capital transactions:  2024   2023   2024   2023 
Reduction of capital expenditures of mineral property interest in accounts payable and accrued liabilities  $52,217   $(117,008)  $(125,838)  $(839,183)
Addition of capital expenditure of mineral property interest from deposits and prepayments  $-   $182,718   $-   $182,718 

 

 

Cash  and cash equivalents:  December 31,
2024		   June 30,
2024		 
Cash on hand and at bank  $10,980,684   $10,689,181 
Cash equivalents   7,081,308    11,261,030 
   $18,061,992   $21,950,211 

 

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