New Pacific Strengthens Balance Sheet with $28.8 Million Financing and Streamlined Q1 Losses
Capital Infusion and Leadership Changes Mark Turning Point
New Pacific Metals Corp. (NEWP) reported its first-quarter fiscal 2026 results, revealing both a strategic $28.8 million financing and newly confirmed leadership. These steps could set the company up for further momentum as it develops its portfolio of Bolivian precious metal projects.
The company completed a bought deal financing on October 21, 2025, issuing over 11.38 million shares at CAD $3.55 (about $2.53 USD) per share. This capital injection boosts New Pacific’s war chest just as new CEO Jalen Yuan and CFO Chester Xie transition from interim to permanent executive roles.
Net Loss Narrows as Costs Come Under Control
New Pacific trimmed its quarterly net loss to $0.75 million, down from $1.26 million the same period last year. Operating expenses also dropped from $1.61 million to $1.32 million, reflecting a disciplined approach to cost management. Income from investments came in lower than last year, while foreign exchange gains helped offset some expenses.
Key Q1 Financial Metrics:
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Net Loss (million) | $0.75 | $1.26 |
| Loss per Share | $0.00 | $0.01 |
| Operating Expenses (million) | $1.32 | $1.61 |
| Investment Income (million) | $0.11 | $0.25 |
| FX Gain (million) | $0.46 | $0.10 |
| Working Capital (as of 9/30/25) | $14.88 million | |
Project Spending Remains Focused on Flagship Assets
The Silver Sand project—New Pacific’s flagship—continues to see steady investment, with $0.51 million capitalized this quarter. Expenditures on the Carangas and Silverstrike projects totaled $0.17 million and $0.02 million, respectively. These allocations show New Pacific’s ongoing focus on growing long-term asset value while carefully managing cash burn.
Summary of Project Expenditures (Q1 2026):
| Project | Q1 2026 Expenditure (million) | Q1 2025 Expenditure (million) |
|---|---|---|
| Silver Sand | $0.51 | $0.52 |
| Carangas | $0.17 | $0.36 |
| Silverstrike | $0.02 | $0.03 |
Liquidity Position Enhanced Ahead of Development Milestones
The latest capital raise increases New Pacific’s flexibility as it moves its major projects toward further milestones. As of September 30, 2025, the company held $14.88 million in working capital, with an additional $28.8 million coming in shortly after quarter end.
Leadership Now Cemented After Interim Period
The confirmation of Jalen Yuan as CEO and Chester Xie as CFO signals stability at the top. Both had served in interim roles since April and are now leading the company into its next phase. Their experience and continuity could give investors additional confidence as project and financing plans advance.
Looking Forward: Poised for Growth Amid Careful Management
With its financing completed and a narrowed net loss, New Pacific Metals appears better positioned to pursue its growth plans. The company’s focused spending on exploration, lower quarterly losses, and stronger balance sheet give it more options to advance key projects, especially the Silver Sand silver deposit. Investors and analysts may want to watch for future milestones and updates as the company leverages its improved financial standing and fresh leadership to navigate market and operational risks in the coming quarters.
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