VANCOUVER, BC, Feb. 4, 2022 /PRNewswire/ - New Pacific
Metals Corp. ("New Pacific" or the "Company") (TSX: NUAG) (NYSE:
NEWP) reports its unaudited consolidated financial results for the
three and six months ended December 31,
2021, the second quarter of fiscal 2022. All figures
are expressed in US dollars unless otherwise stated.
QUARTERLY HIGHLIGHTS
- Metallurgical test results for the Silver Sand Project from
2020 and 2021 identified heap leach process as the preferred
processing method, which achieves 80% silver recovery and
significantly de-risks the project;
- Completed the initial discovery drill program at the Carangas
Project with two phases for a total of 13,209 metres ("m") drilled
in 35 holes, defining a mineralized area approximately 1,000 m by 700 m
and up to 400 m in depth;
- Strengthened the board of directors (the "Board") with the
election of two additional directors, Mr. Terry Salman and Ms. Maria Tang. Mr. Salman has subsequently been
appointed as the Chair of the Board; and
- Maintained working capital of $38.1
million, sufficient to advance the Silver Sand Project, the
Carangas Project and other regional exploration initiatives.
Subsequent to end of the reporting period, on January 24, 2022, the Company announced the
resignation of Dr. Mark Cruise as
Chief Executive Officer ("CEO") and director of the Board and
appointed Dr. Rui Feng as the CEO.
Dr. Rui Feng is the founder of the
Company and served as CEO until April 27,
2020.
FINANCIAL RESULTS
Net loss attributable to equity holders of the Company
for the three months ended December 31,
2021 was $1,295,940 or
$0.01 per share (three months ended
December 31, 2020 – net loss of
$1,774,420 or $0.01 per share). The Company's financial results
were mainly impacted by the following: (i) operating expenses of
$1,364,790 compared to $1,251,752 in the prior year quarter; (ii) income
from investments of $131,471 compared
to loss from investments of $98,800
in the prior year quarter; and (iii) foreign exchange loss of
$63,527 compared to loss of
$425,437 in the prior year
quarter.
For the six months ended December 31,
2021, net loss attributable to equity holders of the Company
was $2,674,167 or 0.02 per share
compared to net loss of $2,904,667 or
0.02 per share for the six months ended December 31, 2020.
Operating expenses for the three and six months ended
December 31, 2021 were
$1,364,790 and $2,961,321, respectively (three and six months
ended December 31, 2020 -
$1,251,752 and $2,773,711, respectively).
Income from investments for the three months ended
December 31, 2021 was $131,471 (three months ended December 31, 2020 – loss of $98,800) and is comprised of a $74,762 gain on the Company's equity investments
(three months ended December 31, 2020
– gain of $110,009), a $31,735 gain on bonds (three months ended
December 31, 2020 – loss of
$306,048), $nil income from dividends
(three months ended December 31, 2020
– income of $54,026), and
$24,974 interest earned from cash
accounts (three months ended December 31,
2020 - $43,213).
For the six months ended December 31,
2021, income from investments was $83,552 (six months ended December 31, 2020 – income of $534,657).
Foreign exchange loss for the three
months ended December 31, 2021
was $63,527 (three months ended
December 31, 2020 – loss of
$425,437). The Company holds a large
portion of cash and short-term investments in US dollars ("USD") to
support its operations in Bolivia.
Revaluation of these USD-denominated financial assets to their
Canadian dollar ("CAD") functional currency equivalents resulted in
unrealized foreign exchange gain or loss for the relevant reporting
periods. During the three months ended December 31, 2021, the USD depreciated by 0.5%
against the CAD (from 1.2741 to 1.2678) while in the prior year
quarter the USD depreciated by 4.6% against the CAD (from 1.3339 to
1.2732).
For the six months ended December 31,
2021, foreign exchange gain was $200,844 (six months ended December 31, 2020 – loss of $666,956).
Working Capital: As of December
31, 2021, the Company had working capital of $38.1 million.
PROJECT OVERVIEW
SILVER SAND PROJECT
On October 19, 2021, the Company
reported results of the metallurgical test program for the Silver
Sand Project. Highlights of the test work include:
- Identified heap leach process as the preferred processing
method;
- 80% silver recovery achieved through heap leach column
testing;
- Approximately 80% of the resource is amenable to heap leaching
and is located near the top of the deposit;
- Lower capital and operating costs compared to alternative
process methods;
- Silver doré production on site further improves project
economics;
- Significantly de-risks the project due to low technical
complexity; and
- Increased project efficiency as the heap leach process may
allow for lower cut-off grade, leading to an increased minable
resource.
For the three and six months ended December 31, 2021, total expenditures of
$1,216,427 and $3,421,960, respectively (three and six months
ended December 31, 2020 -
$669,717 and $1,352,412, respectively) were capitalized under
the project.
CARANGAS PROJECT
On June 29, 2021, the Company
announced the commencement of an initial discovery drill program at
the Carangas Project to test near-surface bulk-tonnage and
high-grade vein-hosted silver-rich polymetallic targets centered on
and adjacent to the historically exploited West and East Dome
areas. As of the date of this news release, total drilling of
13,209 m was completed in 35
holes, defining a mineralized area of approximately
1,000 m long by 700 m wide and up to 400
m in depth. Assays for the first 11 drill holes
include a 143 m interval from surface
grading 130 g/t silver. Following the success of the
discovery drill program in 2021, a new resource definition drill
program is planned for 2022.
For the three and six months ended December 31, 2021, total expenditures of
$1,425,166 and $1,971,108, respectively (three and six months
ended December 31, 2020 - $nil and
$nil, respectively) were capitalized under the project.
SILVERSTRIKE PROJECT
During 2020, the Company's exploration team completed
reconnaissance and detailed mapping and sampling programs on the
northern portion of the project. The results to date indicate good
to excellent exploration potential for hosting narrow, high-grade,
near-surface broad-zones of silver mineralization. The Company is
planning a discovery drill program in 2022 to test the northern and
central areas of the project.
For the three and six months ended December 31, 2021, total expenditures of
$9,057 and $10,805, respectively (three and six months ended
December 31, 2020 - $559,482 and $972,736, respectively) were capitalized under
the project.
MANAGEMENT DISCUSSION AND ANALYSIS
This news release should be read in conjunction with the
Company's Management Discussion and Analysis ("MD&A") and the
unaudited condensed consolidated interim financial statements
and notes thereto for the corresponding period, which have been
filed with the Canadian Securities Administrators and are available
under the Company's profile on SEDAR at www.sedar.com and on the
Company's website at www.newpacificmetals.com.
MANAGEMENT UPDATES
The Company announces the following update to its senior
management team. Steve Stakiw has
joined New Pacific as Senior Vice President. Mr. Stakiw is a
resource sector capital markets executive and geologist with over
25 years of experience encompassing mineral exploration, corporate
development, and investor relations. He has a strong track record
with the financial community, mining analysts and investors.
QUALIFIED PERSON
The scientific and technical information contained in this news
release has been reviewed and approved by Alex Zhang, P. Geo., Vice President of
Exploration, who is a Qualified Person for the purposes of National
Instrument 43-101 – Standards of Disclosure for Mineral Resources
("NI 43-101"). The Qualified Person has verified the information
disclosed herein and are not aware of any significant risks and
uncertainties that could be expected to affect the reliability or
confidence in the information discussed herein.
ABOUT NEW PACIFIC
New Pacific is a Canadian
exploration and development company with precious metal projects,
including the flagship Silver Sand Project, the Silverstrike
Project and the Carangas Project, all of which are located in
Bolivia. The Company is focused on
progressing the development of the Silver Sand Project, while
growing its Mineral Resources through the exploration and
acquisition of properties in the Americas.
For further information, please contact:
New Pacific Metals Corp. Investor Relations
Phone: (604) 633-1368
U.S. & Canada toll-free: 1
(877) 631-0593
E-mail: info@newpacificmetals.com
www.newpacificmetals.com
To receive company news by e-mail, please register using New
Pacific's website at www.newpacificmetals.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
Certain of the statements and information in this news
release constitute "forward-looking statements" within the meaning
of the United States Private Securities Litigation Reform Act of
1995 and "forward-looking information" within the meaning of
applicable Canadian provincial securities laws. Any statements or
information that express or involve discussions with respect to
predictions, expectations, beliefs, plans, projections, objectives,
assumptions or future events or performance (often, but not always,
using words or phrases such as "expects", "is expected",
"anticipates", "believes", "plans", "projects", "estimates",
"assumes", "intends", "strategies", "targets", "goals",
"forecasts", "objectives", "budgets", "schedules", "potential" or
variations thereof or stating that certain actions, events or
results "may", "could", "would", "might" or "will" be taken, occur
or be achieved, or the negative of any of these terms and similar
expressions) are not statements of historical fact and may be
forward-looking statements or information. Such statements include,
but are not limited to: statements regarding anticipated
exploration, drilling, development, construction, and other
activities or achievements of the Company; timing of receipt of
permits and regulatory approvals; timing and content of the PEA,
and estimates of the Company's revenues and capital
expenditures.
Forward-looking statements or information are subject to a
variety of known and unknown risks, uncertainties and other factors
that could cause actual events or results to differ from those
reflected in the forward-looking statements or information,
including, without limitation, risks relating to: global economic
and social impact of COVID-19; fluctuating equity prices, bond
prices, commodity prices; calculation of resources, reserves and
mineralization, general economic conditions, foreign exchange
risks, interest rate risk, foreign investment risk; loss of key
personnel; conflicts of interest; dependence on management,
uncertainties relating to the availability and costs of financing
needed in the future, environmental risks, operations and political
conditions, the regulatory environment in Bolivia and Canada, risks associated with community
relations and corporate social responsibility, and other factors
described under the heading "Risk Factors" in the Company's Annual
Information Form for the year ended June 30,
2021 and its other public filings.
This list is not exhaustive of the factors that may affect
any of the Company's forward-looking statements or
information.
The forward-looking statements are necessarily based on a
number of estimates, assumptions, beliefs, expectations and
opinions of management as of the date of this news release that,
while considered reasonable by management, are inherently subject
to significant business, economic and competitive uncertainties and
contingencies. These estimates, assumptions, beliefs, expectations
and options include, but are not limited to, those related to the
Company's ability to carry on current and future operations,
including: the duration and effects of COVID-19 on our operations
and workforce; development and exploration activities; the timing,
extent, duration and economic viability of such operations; the
accuracy and reliability of estimates, projections, forecasts,
studies and assessments; the Company's ability to meet or achieve
estimates, projections and forecasts; the stabilization of the
political climate in Bolivia; the
Company's ability to obtain and maintain social license at its
mineral properties; the availability and cost of inputs; the price
and market for outputs; foreign exchange rates; taxation levels;
the timely receipt of necessary approvals or permits, including the
ratification and approval of the Mining Production Contract with
COMIBOL by the Plurinational Legislative Assembly of Bolivia; the ability of the Company's Bolivian
partner to convert the exploration licenses at the Carangas Project
to AMC; the ability to meet current and future obligations; the
ability to obtain timely financing on reasonable terms when
required; the current and future social, economic and political
conditions; and other assumptions and factors generally associated
with the mining industry.
Although the forward-looking statements contained in this
news release are based upon what management believes are reasonable
assumptions, there can be no assurance that actual results will be
consistent with these forward-looking statements. All
forward-looking statements in this news release are qualified by
these cautionary statements. Accordingly, readers should not place
undue reliance on such statements. Other than specifically required
by applicable laws, the Company is under no obligation and
expressly disclaims any such obligation to update or alter the
forward-looking statements whether as a result of new information,
future events or otherwise except as may be required by law. These
forward-looking statements are made as of the date of this news
release.
CAUTIONARY NOTE TO US INVESTORS
This news release, including the documents incorporated by
reference herein, has been prepared in accordance with the
requirements of the securities laws in effect in Canada which differ from the requirements of
United States securities laws. All
mining terms used herein but not otherwise defined have the
meanings set forth in NI 43-101.
Accordingly, information contained in this news release and
the documents incorporated by reference herein containing
descriptions of the Company's mineral deposits may not be
comparable to similar information made public by U.S. companies
subject to the reporting and disclosure requirements of
United States federal securities
laws and the rules and regulations thereunder.
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SOURCE New Pacific Metals Corp.