NEW PACIFIC METALS CORP

NEW PACIFIC METALS CORP Annual Report Summary - 2023 Performance

Hey there! Let’s break down New Pacific Metals’ year in simple terms. Think of this as a chat over coffee about whether this company might fit your investment goals.

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1. What They Do

New Pacific Metals explores for silver, gold, and other metals—they’re not actively mining yet. Their main focus is the Silver Sand project in Bolivia, where they’re determining if there’s enough silver to justify building a mine. This year, they advanced environmental studies and community engagement efforts.

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2. Financial Health & Growth

• Revenue: $0 (still in exploration phase).
• Spending: $15 million on drilling, permits, and studies (up from $12 million in 2022).
• Cash: $25 million remaining (down from $40 million last year). They raised $10 million by issuing new shares to fund operations.
• Growth Metric: Progressed project development but no revenue yet.

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3. Wins vs. Challenges

Wins ✅

• Increased the estimated amount of silver they can mine at Silver Sand.
• Advanced environmental permit applications in Bolivia.
• Partnered with a larger mining company to share costs.

Challenges ❌

• Permit delays due to slow government processes.
• Stock price dropped 20% (investor patience wearing thin).
• Rising costs for equipment and labor.

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4. Key Risks to Know

• Silver Prices: Their project’s value hinges on silver prices—if they fall, the project becomes less viable.
• Political Risks: Bolivia’s government could change mining policies or taxes.
• Cash Burn: They have enough cash for 1-2 years but will need to raise more money soon.
• Estimates Could Be Wrong: Their reported silver resources and project valuations involve assumptions about future prices and costs that may not hold.

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5. How They Compare

Most mining exploration companies operate similarly—no profits, reliant on investor funding. New Pacific’s Silver Sand project is one of the largest new silver discoveries globally, giving them an edge. However, bigger competitors have deeper pockets to accelerate development.

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6. What’s Next?

• 2024 Goals: Secure permits, start a feasibility study (to prove mining profitability), and seek partnerships to fund construction.
• Market Trends: Rising demand for silver in solar panels (used in green energy) could boost prices.
• Bolivia Watch: New mining laws may increase taxes or government control over projects.

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The Bottom Line for Investors

High-Risk, High-Reward Play

• 👍 Potential Upside: If permits are approved, silver prices rise, and funding comes through, this stock could soar.
• 👎 Key Risks: Cash could run out before production starts. Political delays or falling silver prices could derail progress.
• 🧐 Transparency Note: The company provided limited details on contingency plans for permit delays or cost overruns.

Who Should Invest?

• If you’re comfortable with volatility, believe in long-term silver demand, and can handle years of uncertainty, this could be a speculative addition to your portfolio.
• If you prefer stable returns or income-generating investments, steer clear—this is still a pre-revenue exploration bet.

Final Thought: Keep this one on your watchlist if you’re bullish on silver. But don’t invest money you can’t afford to lose!

Let me know if you’d like help digging deeper into any of this! ☕️