NEXM · NexMetals Mining Corp.

NexMetals Mining Corp. (NEXM) reported a narrower Q1 2026 net loss of -$10.6 million, a 30.2% year-over-year improvement from -$15.2 million in the prior-year period. This progress stems primarily from the absence of a significant Term Loan extinguishment charge that impacted Q1 2025 results, allowing underlying operational performance to shine through despite increased project investments. Diluted EPS swung to a positive $0.30 from a $0.07 loss, a 328.6% improvement driven by a lower share count post-financings, which amplified per-share earnings even amid ongoing losses.

Cash flow dynamics reflect intensified project momentum in Botswana's Selebi Project. Net cash used in operating activities widened to -$12.2 million from -$6.3 million YoY, as the Company deployed cash toward general exploration expenses and investments in drilling and other equipment. This aligns with management commentary noting the decrease in working capital resulted directly from these activities, underscoring disciplined spending to advance key assets. Capital expenditures escalated to $768 thousand from just $50 thousand, funding equipment to support scaling drilling operations. Consequently, free cash flow stood at -$13.0 million, signaling robust commitment to de-risking development pathways without proportional revenue generation yet.

Strategically, these investments position the Company for milestones ahead. A Preliminary Economic Assessment (PEA) commenced in October 2025 for Selebi Mines under a separate saleable concentrates scenario, encompassing mine design, process engineering, infrastructure, and cost estimations. Management anticipates an in-house drilling fleet will enhance capital efficiency over time as activity scales. With re-sampling and LCT results integrated, an updated Mineral Resource Estimate (MRE) is targeted for Q2 2026. To sustain this trajectory—including planned project advancement and administrative costs—the Company will draw on existing working capital while raising additional funds as needed. As of March 31, 2026, no material rehabilitation costs or contingent liabilities are anticipated related to exploration assets, providing clarity on the balance sheet.

Overall, Q1 results demonstrate effective cost management against a cleaner comparative base, with cash deployment fueling tangible progress on high-potential Botswana assets. Investors should monitor funding execution and technical study outcomes, as these will dictate the path to potential production and profitability.