Borealis Reports Q4 and Fiscal 2026 Financial and Operating Results

Year-end inventory reached US$12.55 million as Borealis prioritized converting stockpiled material and work in progress into gold sales.

Rhea-AI Summary

Borealis (BORMF) reported fiscal 2026 revenue of US$12.65 million as it resumed open-pit mining and commenced commercial production. For the year ended July 31, revenue rose approximately 234%, gross profit reached US$4.95 million and gross margin increased to 39.1% from 13.0%. Net loss narrowed to US$4.74 million from US$14.87 million, partly reflecting the absence of a prior-year acquisition expense.

Q4 revenue was US$3.63 million, with a US$0.13 million net loss. Year-end cash reached US$16.35 million, while annual operating cash use increased to US$9.19 million. Fiscal 2026 gold production totaled 2,870 ounces. Borealis targets 15,250–19,250 ounces for fiscal 2027, subject to operating conditions, metallurgical performance and funding. Sandman engineering and permitting advanced following an updated preliminary economic assessment; development remains subject to technical results, permitting, financing and a future construction decision.

20 points · 1 major

PositiveiHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

0 major · 11 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major pointFiscal 2026 financing cash inflows reached US$23,708,054, including a completed C$23.01 million bought deal financing. 31% of market cap
• Moderate pointFiscal 2026 revenue increased approximately 234% to US$12,646,859 from US$3,782,015.
• Moderate pointFiscal 2026 gross profit increased to US$4,946,153 from US$492,557; margin rose to 39.1% from 13.0%.
• Moderate pointFiscal 2026 net loss narrowed to US$4,743,667 from US$14,872,323, partly reflecting an absent prior-year acquisition expense.
• Moderate pointYear-end cash increased to US$16,348,970 from US$3,183,238 at July 31, 2025.
• Moderate pointBorealis resumed open-pit mining and commenced commercial production during fiscal 2026.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Fiscal 2027 gold production target is 15,250–19,250 ounces for the year ending July 31, 2027.

13 minor points

• Minor pointFiscal 2026 basic and diluted loss per share narrowed to US$0.03 from US$0.15.
• Minor pointQ4 revenue increased to US$3,628,529 from US$1,198,873 a year earlier.
• Minor pointQ4 gross profit increased to US$1,605,278 from US$154,229; margin rose to 44.2% from 12.9%.
• Minor pointQ4 net loss narrowed to US$127,246 from US$1,040,496 a year earlier.
• Minor pointYear-end working capital increased to US$25,187,518 from US$5,160,379 at July 31, 2025.
• Minor pointShareholders' equity reached US$17,182,808, versus a US$2,818,923 deficiency at July 31, 2025.
• Minor point. Forward-looking: it has not happened yet and may not happen.Sandman's completed preliminary economic assessment estimated approximately US$203 million after-tax net present value at a 6% discount rate.
• Minor point. Forward-looking: it has not happened yet and may not happen.Sandman's preliminary assessment estimated approximately 105% after-tax internal rate of return at US$2,600-per-ounce gold.
• Minor point. Forward-looking: it has not happened yet and may not happen.Sandman's preliminary assessment outlined approximately 38,000 ounces average annual gold production over approximately nine years.
• Minor pointSandman engineering, technical and permitting programs began toward a future construction decision.
• Minor point. Forward-looking: it has not happened yet and may not happen.Sandman's announced 5,000-metre drilling program includes approximately 1,660 metres planned for metallurgical and geotechnical work.
• Minor point. Forward-looking: it has not happened yet and may not happen.Existing Borealis gold-recovery infrastructure could lower Sandman's initial capital requirements, the company said.
• Minor pointPost-year-end warrant exercises generated US$212,395 in gross proceeds.

Negative

• Moderate pointOperating cash use increased to US$9,194,305 in fiscal 2026 from US$6,296,946.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Ongoing funding requirements remain reliant on production and access to capital amid operating losses and negative operating cash flow.
• Moderate pointTotal liabilities increased to US$16,569,159 from US$11,833,019 at July 31, 2025.
• Minor pointAccounts payable and accrued liabilities increased to US$4,889,370 from US$1,098,337 at July 31, 2025.
• Minor pointFiscal 2026 cost of sales increased to US$7,700,706 from US$3,289,458.

6 minor points

• Minor pointQ4 cost of sales increased to US$2,023,251 from US$1,044,644 a year earlier.
• Minor point. Forward-looking: it has not happened yet and may not happen.Fiscal 2027 production guidance depends on operating conditions, metallurgical performance and funding availability.
• Minor point. Forward-looking: it has not happened yet and may not happen.Sandman's economic assessment remains preliminary; advancement requires technical results, permitting, financing and a future construction decision.
• Minor point. Forward-looking: it has not happened yet and may not happen.Sandman's preliminary assessment estimated initial capital expenditures of approximately US$36 million.
• Minor pointPost-year-end exercises of 688,889 warrants added equity dilution.
• Minor point. Forward-looking: it has not happened yet and may not happen.Expanded Borealis production may require permit modifications subject to regulatory review.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

• Annual revenue of US$12.65 million and gross profit of US$4.95 million
• Open-pit mining resumed and commercial production commenced during fiscal 2026
• Year-end cash of US$16.35 million supports operations and continued advancement of Sandman

Vancouver, British Columbia--(Newsfile Corp. - November 10, 2026) - Borealis Mining Company Limited (TSXV: BOGO) (OTCQB: BORMF) (FSE: L4B0) (the "Company" or "Borealis") is pleased to report financial and operating results for the fourth quarter and year ended July 31, 2026. Annual financial results are drawn from the Company's audited consolidated financial statements. All amounts are in United States dollars unless otherwise indicated.

Kelly Malcolm, President and CEO of Borealis, commented: "Fiscal 2026 marked the transition from processing historical stockpiles to active open-pit mining and commercial production at the Borealis gold mine. Annual revenue increased to $12.65 million and gross profit reached $4.95 million as mining and processing activities advanced. Our focus is on coordinating mining, crushing, stacking and leaching to establish more consistent production, convert inventory into gold sales and improve operating performance. Alongside this work, we are advancing the engineering, metallurgical and permitting activities needed to evaluate development of the Sandman gold project."

Q4 Fiscal 2026 Highlights

Three months ended July 31, 2026; financial amounts below are rounded as reported in the MD&A.

• Revenue of approximately $3.63 million, gross profit of approximately $1.61 million and a gross margin of 44.2%.
• Net loss of approximately $0.13 million.
• Continued mine development, material movement, crushing, stacking and gold recovery at the Borealis Mine, supported by its principal mining contractor Ledcor.

Fiscal 2026 Highlights

• Revenue increased approximately 234% to $12.65 million from $3.78 million in fiscal 2025. Gross profit increased to $4.95 million from $0.49 million, with gross margin improving to 39.1% from 13.0%.
• Net loss narrowed to $4.74 million from $14.87 million in fiscal 2025.
• First production blast completed at the East Ridge open pit on January 28, 2026; mining subsequently advanced across the East Ridge and Deep Ore Flats pit areas.
• Completed a C$23.01 million bought deal financing and an updated preliminary economic assessment for Sandman.

Borealis Mine Operations Update

Operations early in fiscal 2026 focused on crushing, stacking and leaching historical oxide stockpiles while the Company prepared to resume open-pit mining. Following the January restart, mining and material movement progressed alongside operation of the existing heap leach pads and adsorption, desorption and recovery (ADR) facility.

During Q4, the Company focused on mine development and coordination of mining, crushing, stacking and leaching activities. Management also evaluated mine sequencing, material handling and processing improvements to support more efficient use of existing infrastructure.

Figure 1: Heap Leach Pad Progress - Borealis Mine Fiscal 2026

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/9344/323252_e2963cc1d429b91a_001full.jpg

Figure 2: East Ridge Pit Mining Progress- Borealis Mine Fiscal 2026

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/9344/323252_e2963cc1d429b91a_002full.jpg

Figure 3: Deep Ore Flats Pit Mining Progress - Borealis Mine Fiscal 2026

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/9344/323252_e2963cc1d429b91a_003full.jpg

Operating Statistics

• Total material mined Ex-Pit: Q4 1,033 kilotons; FY2026 1,843 kilotons.
• Total material moved including rehandle: Q4 1,190 kilotons; FY2026 2,105 kilotons.
• Waste mined: Q4 783 kilotons; FY2026 1,445 kilotons.
• Ore mined: Q4 250 kilotons; FY2026 376 kilotons; strip ratio: Q4 3.1:1; FY2026 3.8:1.
• Material crushed: Q4 138 kilotons; FY2026 449 kilotons.
• Material stacked: Q4 150 kilotons; FY2026 466 kilotons. Note: 10kt of ROM was direct hauled to leach pad in July 2026.
• Average mined grades: Q4 gold 0.56 g/t ; FY2026 gold 0.53 g/t.
• Average stacked grades: Q4 gold 0.41 g/t; FY2026 gold 0.48 g/t. Gold poured: Q4 900 oz; FY2026 2,870 oz. Silver poured: Q4 1,356 oz; FY2026 2,877 oz.
• Gold sold: Q4 877 oz; FY2026 2,847 oz.
• Silver sold: Q4 1,229 oz; FY2026 2,751 oz.
• Realized prices: Q4 gold $4,056.34/oz and silver $57.87/oz; FY2026 gold $4,379.28/oz and silver $64.80/oz.
• Recoverable gold added to leach pads: Q4 1,315 oz; FY2026 4,748 oz. Estimated recoverable gold remaining at July 31, 2026: 2,573oz.
• Quarter-end and year-end stockpile and leach-pad tonnes, contained ounces and grades:
  • High grade ore stockpile: 131 kilotons at 0.60 g/t gold with an estimated 1,688 oz gold contained.
  • Active leach pad (HLP6): 540 kilotons stacked from project start to July 31^st 2026 at average stacked gold grade of 0.50 g/t.
• Operating workforce and safety performance:
  • Borealis has an operating workforce of approximately 22 people based on-site on weekly and rotating work shifts, in addition to the mining contractor crew of approximately 50 personnel.
  • Strong safety performance over fiscal year 2026. In April 2026, the operation surpassed 100,000 hours worked without a lost-time injury. Maintained safe production through significant ramp up of production and personnel on the mine site.

Financial Results

Annual revenue growth and higher gross profit reflected increased gold and silver sales as operations advanced. The smaller annual net loss also reflected the absence of the $6.89 million exploration and evaluation acquisition expense recognized in fiscal 2025 for the Gold Bull Resources transaction.

US$ except per-share amounts	FY2026	FY2025
Revenue	12,646,859	3,782,015
Cost of sales	7,700,706	3,289,458
Gross profit	4,946,153	492,557
Gross margin	39.1%	13.0%
Net loss	(4,743,667)	(14,872,323)
Basic and diluted loss per share	(0.03)	(0.15)
Cash used in operating activities	(9,194,305)	(6,296,946)
Cash from (used in) investing activities	(1,083,477)	132,512
Cash from financing activities	23,708,054	6,567,336

 Annual periods ended July 31. Gross margin is gross profit divided by revenue, rounded to one decimal place.

Financial position in US$	July 31, 2026	July 31, 2025
Cash and cash equivalents	16,348,970	3,183,238
Inventory	12,545,016	1,934,006
Working capital	25,187,518	5,160,379
Total assets	33,751,967	9,014,096
Accounts payable and accrued liabilities	4,889,370	1,098,337
Total liabilities	16,569,159	11,833,019
Shareholders' equity (deficiency)	17,182,808	(2,818,923)

 Working capital is current assets less current liabilities.

Year-end inventory comprised $4,564,634 of stockpiled material and $7,980,382 of work in progress. Cash used in operations was $9.19 million, including the effect of a $10.61 million increase in inventory. Net financing cash inflows totalled $23.71 million, including the January financing and proceeds from exercises of warrants and options.

Q4 revenue was approximately $3.63 million, gross profit $1.61 million and net loss $0.13 million.

US$ except per-share amounts	Q42026	Q42025
Revenue	3,628,529	1,198,873
Cost of sales	2,023,251	1,044,644
Gross profit	1,605,278	154,229
Gross margin	44.2%	12.9%
Net loss	(127,246)	(1,040,496)
Basic and diluted loss per share	(0.00)	(0.01)

 

Following year-end, 688,889 warrants were exercised for gross proceeds of $212,395 (C$296,227).

These results should be read with the annual consolidated financial statements and accompanying MD&A filed on SEDAR+.

Sandman Gold Project

Borealis continued advancing its wholly owned Sandman Gold Project in Humboldt County, Nevada. During fiscal 2026, the Company completed an updated preliminary economic assessment (PEA) evaluating a conventional open-pit, heap leach operation. As announced on February 19, 2026, at a base-case gold price of $2,600 per ounce, the updated study outlined an approximately nine-year mine life and average annual gold production of approximately 38,000 ounces.

The updated PEA estimated an after-tax net present value of approximately $203 million at a 6% discount rate, an after-tax internal rate of return of approximately 105%, and initial capital expenditures of approximately $36 million. It contemplated processing loaded carbon from Sandman at the existing Borealis ADR facility, potentially reducing the need for a separate ADR facility at Sandman.

The PEA is preliminary in nature and includes inferred mineral resources considered too speculative geologically to have economic considerations applied that would enable them to be categorized as mineral reserves. There is no certainty that the PEA results will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

During fiscal 2026, Borealis advanced its wholly owned Sandman Gold Project toward a future construction decision, initiating engineering, technical and permitting programs following completion of the updated preliminary economic assessment. The Company engaged M3 Engineering & Technology Corporation as lead engineering firm and RESPEC to support mine planning, resource modeling, geotechnical, hydrogeological and environmental work. Environmental baseline studies and permitting strategy development were also initiated with Sunstone Environmental Solutions and U.S. permitting counsel Hunton Andrews Kurth.

During the fourth quarter, the Company announced a 5,000-metre drilling program, including approximately 1,660 metres of planned metallurgical and geotechnical drilling across Sandman's four deposits: Silica Ridge, North Hill, Abel Knoll and Southeast Pediment. This initial phase is designed to provide samples for recovery testing and technical data for pit slope design, mine planning, infrastructure layout and permitting. The remaining metres are planned for resource expansion and exploration, targeting extensions of known mineralization and additional priority targets across the property.

These programs are intended to refine the development plan and reduce technical uncertainty while evaluating the potential to process loaded carbon at the existing Borealis ADR facility, which could lower Sandman's initial capital requirements. Advancement remains subject to technical results, permitting, financing and a future construction decision.

Outlook

Borealis enters fiscal 2027 focused on translating the restart of open-pit mining into higher gold production and improved operating performance. Priorities include strengthening mining and processing efficiency, converting inventory into gold sales and maintaining disciplined cost and working capital management. As announced on October 22, 2026, the Company is targeting production of 15,250-19,250 ounces of gold from the Borealis Mine for the fiscal year ending July 31, 2027. In parallel, Borealis is advancing technical studies, engineering and permitting at Sandman to support a future construction decision and the Company's longer-term objective of building a multi-asset Nevada gold producer.

Production guidance remains subject to operating conditions, metallurgical performance and the availability of funding. Advancement of Sandman remains subject to technical results, permitting and financing. The Company continues to incur operating losses and negative operating cash flow and remains reliant on production and access to capital to meet ongoing funding requirements.

Cautionary Statement Regarding Mineral Resources, Mineral Reserves and Production

The Borealis Mine does not have current mineral resources or mineral reserves established in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"). Historical estimates are not being treated by the Company as current mineral resources or mineral reserves and should not be relied upon as such.

The Company's decision to undertake and expand mining operations at the Borealis Mine, including the Fiscal 2027 operating plan and guidance presented in this release, relies on internal modelling and management's understanding of the property. These activities are proceeding without a preliminary economic assessment, pre-feasibility study or feasibility study supporting the production decision and establishing its economic and technical viability.

Consequently, the operating plan and production guidance carry greater uncertainty and a higher risk of technical or economic failure. Actual mineralized tonnages, grades, strip ratios, recoveries and production rates could differ materially from expectations. Mining and processing could also prove more difficult or costly than anticipated. There is no assurance that Fiscal 2027 guidance will be achieved or that operations will be economically viable.

Qualified Person

Technical information contained in this press release has been reviewed and approved by Kelly Malcolm, P.Geo., a non-independent Qualified Person as defined under National Instrument 43-101.

Borealis Mine

The Borealis mine property, located close to the town of Hawthorne, NV, is fully permitted and equipped for present mine operations and future expansion, with existing open pits, heap leach pads, modern infrastructure, and a functional ADR facility which produces doré bars. The project has historically produced over 600,000¹ ounces of gold from an open pit heap leach operation. It is an under-explored property and has not been drilled since 2011, aside from Borealis' efforts in 2024 and 2025. The property possesses high grade expansion potential with robust historical drilling results, along with a number of untested regional targets. ¹Please see the Borealis Mine technical report entitled "NI 43-101 Technical Report, Project Status Report, Borealis Mine, Nevada, U.S.A." authored by Douglas Reid, P.Eng. of SRK Consulting, dated February 16, 2024. The report can be found on SEDAR+ or the Borealis website.

The Borealis Project holds existing federal and state permits for mining and processing operations. However, certain permit modifications may be required for expanded production, and the timeline for such approvals is subject to regulatory review. The Company cannot guarantee the timing or success of any permit modifications that may be required for future expansions.

About Borealis

Borealis is a Nevada-focused gold mining and exploration company operating the Borealis Mine and advancing the Sandman gold project. Located near Hawthorne, Nevada, the Borealis Mine includes open-pit mining infrastructure, heap-leach pads and an adsorption, desorption and recovery ("ADR") facility for gold recovery and doré production. The Company's strategy combines production from its existing operations with exploration and development opportunities across its Nevada portfolio.

For further information, please contact:

Kelly Malcolm
President and Chief Executive Officer
info@BorealisMining.com
Office: (289) 371-3371

This press release includes "forward-looking statements", within the meaning of applicable securities legislation, which are based on the opinions and estimates of management and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "budget", "plan", "continue", "estimate", "expect", "forecast", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar words suggesting future outcomes or statements regarding an outlook. Such risks and uncertainties include, but are not limited to, risks associated with the mining industry (including operational risks in exploration development and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainties involved in the discovery and delineation of mineral deposits, resources or reserves; the uncertainty or absence of resource and reserve estimates and the ability to economically exploit resources and reserves; the uncertainty of estimates and projections in relation to production, costs and expenses; the uncertainty surrounding the ability of Borealis to obtain all permits, consents or authorizations required for its operations and activities; and health and safety and environmental risks), the risk of commodity price and foreign exchange rate fluctuations, the ability of Borealis to fund the capital and operating expenses necessary to achieve the business objectives of Borealis, engineering, permitting, construction timing and targeted capacity of the proposed heap-leach pad; planned ADR facility upgrades and their anticipated effects on throughput and operating efficiency; the scope and timing of Sandman metallurgical testing, engineering, mine planning and permit applications; potential integration with Borealis infrastructure; and proposed exploration and drilling activities at Borealis, Sandman and Big Balds; the uncertainty associated with commercial negotiations and negotiating with foreign governments and risks associated with international business activities, as well as those risks described in public disclosure documents filed by Borealis. Due to the risks, uncertainties and assumptions inherent in forward-looking statements, prospective investors in securities of Borealis should not place undue reliance on these forward-looking statements.

Forward-looking information reflects management's opinions, estimates and assumptions as of the date of this release, including assumptions regarding the availability of equipment, personnel and supplies; access to planned mining areas; maintenance of required permits; and the achievement of anticipated mining rates, grades, stacking rates and metallurgical performance.

Statements in relation to "resources" and "reserves" are deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described can be profitably produced in the future. The absence of current mineral resources and mineral reserves and supporting economic studies at the Borealis Mine creates additional uncertainty, as described under "Cautionary Statement Regarding Mineral Resources, Mineral Reserves and Production" above.

Actual results may differ materially from expectations because of changes in geological conditions, mineralized tonnages, grades, dilution, strip ratios, mine sequencing, equipment availability, weather, permitting requirements and other operating conditions. Mining and processing may be more difficult or costly than anticipated. Metallurgical testwork may not be representative of performance at operating scale, and ROM material may exhibit slower leach kinetics and lower ultimate recoveries than crushed material. Additional stacking may not result in the anticipated quantity or timing of gold production or revenue. Gold prices and the timing of sales may also affect results.

These plans assume the availability of funding, personnel and contractors, satisfactory technical results, and timely receipt of required regulatory authorizations. Technical findings and regulatory processes may alter the scope or timing of planned work. There is no assurance that exploration will establish additional mineral resources, that permit applications will be submitted or approved within anticipated timelines, or that Sandman will proceed to construction or production.

Readers are cautioned that the foregoing lists of risks, uncertainties and other factors are not exhaustive. The forward-looking statements contained in this press release are made as of the date hereof and Borealis undertakes no obligation to update publicly or revise any forward-looking statements contained in this press release or in any other documents filed with Canadian securities regulatory authorities, whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/323252

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What is Borealis BORMF's fiscal 2027 gold production target?

Borealis targets 15,250–19,250 ounces of gold from the Borealis Mine for the fiscal year ending July 31, 2027. The target remains subject to operating conditions, metallurgical performance and the availability of funding.

What did Borealis's updated Sandman preliminary economic assessment show?

At a base-case gold price of US$2,600 per ounce, Sandman's preliminary assessment estimated an after-tax net present value of approximately US$203 million at a 6% discount rate. It estimated an approximately 105% after-tax internal rate of return and approximately US$36 million in initial capital expenditures. The study is preliminary and includes inferred mineral resources.

How much recoverable gold remained on Borealis's leach pads at fiscal 2026 year-end?

Estimated recoverable gold remaining at July 31, 2026 was 2,573 ounces. During fiscal 2026, 4,748 ounces of recoverable gold were added to the leach pads; the Q4 addition was 1,315 ounces.

What made up Borealis's fiscal 2026 year-end inventory?

Year-end inventory comprised US$4,564,634 of stockpiled material and US$7,980,382 of work in progress. Total inventory was US$12,545,016, compared with US$1,934,006 a year earlier. Annual operating cash use included the effect of a US$10.61 million increase in inventory.