Financial Performance - The net loss for the three months ended June 30, 2025, was $15,088,746, an increase of 54% compared to $9,793,192 in the same period of 2024 [188]. - The Company incurred a net loss of $15,088,746 and $30,317,076 for the three and six months ended June 30, 2025, respectively, compared to a net loss of $9,793,192 and $19,140,372 for the same periods in 2024 [211]. - Cash flows from operating activities for the six months ended June 30, 2025, were $(21,685,611), compared to $(16,679,312) in the prior year [195]. - Total expenses for the three months ended June 30, 2025, amounted to $10,337,096, with drilling costs being the largest component at $3,737,718 [229]. - For the six months ended June 30, 2025, total expenses reached $16,472,873, with drilling costs again leading at $4,421,810 [229]. Capital Structure and Financing - The Company completed a significant recapitalization in March 2025, which included a $46.0 million non-brokered equity private placement and the equity conversion of a $20.9 million three-year term loan, successfully deleveraging its balance sheet [134]. - The Company received a non-binding letter of interest from the Export-Import Bank of the United States for potential financing of up to $150 million to support the redevelopment of its Mines [134]. - The Company issued 7,666,667 units in a Private Placement at $6.00 per unit, generating gross proceeds of $46,000,000 [206]. - Working capital increased to $23,875,340 as of June 30, 2025, compared to $3,410,490 at the end of 2024, driven by the cash proceeds from the Private Placement [201]. - The Company has contractual obligations totaling $5,447,045, excluding the second installment under the Selebi APA of $34,107,500 due January 31, 2026 [242][243]. Exploration and Development - The Selkirk Mineral Resource Estimate filed on January 31, 2025, provides a foundation for advancing the Selkirk deposit to an economic study [134]. - The ongoing exploration and development costs for the Selebi Mines and Selkirk drill programs are estimated between $3.3 million to $3.7 million, with completion expected by September 30, 2025 [136]. - The Company is advancing its strategic direction with an aggressive exploration drilling program at the Selebi Mines while finalizing metallurgical work for a future economic study [134]. - The Company has drilled approximately 5,123 metres in 8 holes as part of the Selebi North Underground Resource Expansion Drilling program, with assays for approximately 38,139 metres across 86 completed holes pending [152]. - The ongoing drilling program at the Selebi Hinge is expected to consist of approximately 12,500 metres in 6 holes over an estimated period of 7 months [166]. Resource Estimates - The Company reported a total inferred mineral resource of 24.72 million tonnes at an average grade of 1.50% Ni and 0.92% Cu for the Selebi Mines as of June 30, 2024 [146]. - The South Limb mineralization at Selebi North has been extended by 315 metres down-plunge, representing a 35% increase beyond the 2024 mineral resource estimate [150]. - The Selkirk Mine Mineral Resource Estimate as of November 1, 2024, includes 44.2 million tonnes with grades of 0.30% Cu and 0.24% Ni, containing 132,000 tonnes of Cu and 108,000 tonnes of Ni [171]. Leadership and Governance - The Company appointed new board members and a new CEO in March 2025, indicating a shift in leadership to support its strategic initiatives [134]. - The Company’s common shares began trading on the Nasdaq under the symbol "NEXM" on July 16, 2025, following a consolidation of shares [134]. Cash and Assets - Total assets increased by $22,100,405 to $47,053,874 as of June 30, 2025, primarily due to higher cash balances following a Private Placement of $46,000,000 in March 2025 [189]. - The Company had $26,463,957 in cash and cash equivalents as of June 30, 2025, up from $6,105,933 at the end of 2024 [201]. - The Company's current assets increased to $29,371,370 as of June 30, 2025, up from $7,618,243 as of December 31, 2024 [227]. Risks and Commitments - The Company has not generated profitable operations from its resource activities to date, raising substantial doubt about its ability to continue as a going concern [211]. - The Company is exposed to interest rate risk due to variable interest rates on vehicle financing [237]. - The Company limits credit risk by holding cash and cash equivalents at highly-rated financial institutions [240]. - The Company has an option to cancel the second and third payments for the Selebi Mines if deemed not economical, with no conditions met for these payments as of June 30, 2025 [212]. - As of June 30, 2025, the Company had commitments for capital expenditures over the next 12 months of $7,180, and an aggregate purchase price of US$56,750,000 for the Selebi Mines, payable in three instalments [212].
NexMetals Mining Corp(NEXM) - 2025 Q2 - Quarterly Report