Borealis Reports Q4 and Fiscal 2026 Financial and Operating Results

Borealis Mining posts strong revenue growth but remains loss-making and capital-dependent.

What the company is saying

Borealis Mining Company Limited, led by President and CEO Kelly Malcolm, frames fiscal 2026 as a pivotal year, highlighting the transition from processing historical stockpiles to active open-pit mining and commercial production at the Borealis gold mine. The company emphasizes a 234% increase in annual revenue to $12.65 million, a rise in gross profit to $4.95 million, and a sharply reduced net loss of $4.74 million. Management attributes these improvements to the ramp-up in mining and processing activities, as well as the absence of a one-time $6.89 million acquisition expense from the prior year. The release stresses operational progress, including the first production blast at East Ridge and ongoing development at Deep Ore Flats, and underlines safety achievements with over 100,000 hours worked without a lost-time injury. Borealis also spotlights the advancement of its Sandman Gold Project, referencing a new PEA with robust economics and the launch of technical and permitting programs. The company maintains a confident but measured tone, acknowledging continued operating losses and dependence on production and capital access.

What the data suggests

The disclosed figures show Borealis Mining achieved $12.65 million in revenue for fiscal 2026, up from $3.78 million, and gross profit of $4.95 million, up from $0.49 million, with gross margin improving to 39.1%. The net loss narrowed to $4.74 million from $14.87 million. Q4 revenue was $3.63 million, gross profit $1.61 million, and net loss $0.13 million, with a 44.2% gross margin. Operationally, 2,870 oz of gold and 2,877 oz of silver were poured in FY2026, with 2,847 oz gold and 2,751 oz silver sold. Realized gold prices averaged $4,379.28/oz for the year. Cash and cash equivalents at year-end were $16.35 million, inventory stood at $12.55 million, and working capital was $25.19 million. Cash used in operations was $9.19 million, driven by a $10.61 million inventory build, while net financing inflows reached $23.71 million, including a C$23.01 million bought deal. The Sandman PEA projects a nine-year mine life, 38,000 oz average annual gold production, $203 million after-tax NPV (6% discount), 105% IRR, and $36 million initial capex at a $2,600/oz gold price, but is preliminary and subject to technical, permitting, and financing milestones. The company remains loss-making and reliant on external capital, with future value contingent on delivering operational improvements and advancing Sandman beyond the PEA stage.

Analysis

The announcement provides detailed, transparent financial and operational results, including revenue, gross profit, gross margin, and net loss, all of which show substantial year-over-year improvement. The majority of claims are realised and supported by numerical data, with only a minority of forward-looking statements (notably, production guidance for fiscal 2027 and advancement of the Sandman project). The tone is positive but proportionate to the measurable progress: the company has transitioned to commercial production at Borealis and improved its financial position, though it remains loss-making and reliant on external capital. The Sandman PEA is clearly identified as a preliminary study, with advancement contingent on technical, permitting, and financing milestones, and no exaggerated claims of imminent benefit. Capital intensity is flagged due to the $36 million initial capex for Sandman and ongoing reliance on financing, but the company is not overstating near-term returns from this outlay. There is minimal narrative inflation, as forward-looking statements are appropriately caveated and the realised operational improvements are substantial.

Risk flags

• ●Borealis continues to post operating losses and negative operating cash flow, with a net loss of $4.74 million in FY2026 and $9.19 million cash used in operations. This persistent deficit means the company is reliant on ongoing access to external capital to fund operations and future growth.
• ●The Sandman Gold Project, while showing strong economics in its PEA, is still at a preliminary stage. Advancement is subject to technical results, permitting, and financing, and there is no guarantee the project will proceed to construction or deliver the projected returns.
• ●Inventory increased by $10.61 million during the year, tying up significant working capital and potentially exposing the company to commodity price volatility or operational bottlenecks if inventory cannot be efficiently converted to sales.
• ●Production guidance for FY2027 (15,250-19,250 oz gold) is subject to operating conditions, metallurgical performance, and funding availability, introducing execution risk if operational targets are missed or if market conditions deteriorate.
• ●The company’s capital structure is heavily influenced by equity financings, including a C$23.01 million bought deal and $212,395 from warrant exercises, which may dilute existing shareholders if further capital is required before profitability is achieved.

Bottom line

Borealis Mining (TSXV:BOGO, OTCQB:BORMF, FSE:L4B0) delivered strong revenue and gross profit growth in fiscal 2026, driven by the transition to open-pit mining at its Borealis gold mine, but remains unprofitable and reliant on external capital. Operational metrics show progress, with 2,870 oz gold poured and realized prices above $4,000/oz, yet cash used in operations and a $4.74 million net loss highlight ongoing financial risk. The Sandman project’s PEA presents attractive economics, but these are preliminary and subject to significant execution hurdles, including technical, permitting, and financing milestones. Inventory build and ambitious production guidance for FY2027 add further operational and market risk. Investors should focus on the company’s ability to convert inventory to sales, achieve operational efficiency, and secure funding for Sandman’s advancement. The most important takeaway is that while operational momentum is positive, Borealis’s path to sustained profitability and value creation is still uncertain and capital-dependent.

Announcement summary

(TSXV:BOGO) (OTCQB:BORMF) (FSE:L4B0) Borealis Mining Company Limited reported financial and operating results for the fourth quarter and year ended July 31, 2026. 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, up approximately 234% from $3.78 million in fiscal 2025. Gross profit rose to $4.95 million from $0.49 million, with gross margin improving to 39.1% from 13.0%. The net loss narrowed to $4.74 million from $14.87 million in fiscal 2025. Q4 revenue was approximately $3.63 million, gross profit $1.61 million, and net loss $0.13 million, with a gross margin of 44.2%. Total material mined ex-pit in Q4 was 1,033 kilotons and 1,843 kilotons for FY2026; total material moved including rehandle was 1,190 kilotons in Q4 and 2,105 kilotons for FY2026. Waste mined was 783 kilotons in Q4 and 1,445 kilotons for FY2026, while ore mined was 250 kilotons in Q4 and 376 kilotons for FY2026, with strip ratios of 3.1:1 and 3.8:1, respectively. Material crushed was 138 kilotons in Q4 and 449 kilotons for FY2026; material stacked was 150 kilotons in Q4 and 466 kilotons for FY2026. Average mined gold grades were 0.56 g/t in Q4 and 0.53 g/t for FY2026; average stacked gold grades were 0.41 g/t in Q4 and 0.48 g/t for FY2026. Gold poured totaled 900 oz in Q4 and 2,870 oz for FY2026; silver poured was 1,356 oz in Q4 and 2,877 oz for FY2026. Gold sold was 877 oz in Q4 and 2,847 oz for FY2026; silver sold was 1,229 oz in Q4 and 2,751 oz for FY2026. Realized prices in Q4 were $4,056.34/oz for gold and $57.87/oz for silver; for FY2026, $4,379.28/oz for gold and $64.80/oz for silver. Recoverable gold added to leach pads was 1,315 oz in Q4 and 4,748 oz for FY2026, with an estimated 2,573 oz recoverable gold remaining at July 31, 2026. The high-grade ore stockpile at year-end was 131 kilotons at 0.60 g/t gold, containing an estimated 1,688 oz gold. The active leach pad (HLP6) had 540 kilotons stacked at an average gold grade of 0.50 g/t. Borealis maintained an operating workforce of approximately 22 people on-site and a mining contractor crew of about 50 personnel, surpassing 100,000 hours worked without a lost-time injury in April 2026. Cash and cash equivalents at July 31, 2026, were $16,348,970, with inventory of $12,545,016 and working capital of $25,187,518. Year-end inventory included $4,564,634 of stockpiled material and $7,980,382 of work in progress. Cash used in operating activities was $9.19 million, including a $10.61 million increase in inventory. Net financing cash inflows totaled $23.71 million, including a C$23.01 million bought deal financing and proceeds from warrant and option exercises. Following year-end, 688,889 warrants were exercised for gross proceeds of $212,395 (C$296,227). At the Sandman Gold Project in Humboldt County, Nevada, Borealis completed an updated preliminary economic assessment (PEA) outlining a nine-year mine life, average annual gold production of 38,000 ounces, after-tax NPV of $203 million at a 6% discount rate, after-tax IRR of 105%, and initial capital expenditures of $36 million at a base-case gold price of $2,600 per ounce. The PEA contemplates processing loaded carbon from Sandman at the Borealis ADR facility. During fiscal 2026, Borealis initiated engineering, technical, and permitting programs at Sandman, engaging M3 Engineering & Technology Corporation, RESPEC, Sunstone Environmental Solutions, and Hunton Andrews Kurth. A 5,000-metre drilling program was announced, including 1,660 metres of metallurgical and geotechnical drilling across Sandman's four deposits. The company is targeting production of 15,250-19,250 ounces of gold from the Borealis Mine for fiscal 2027. Advancement of Sandman remains subject to technical results, permitting, financing, and a future construction decision. Borealis continues to incur operating losses and negative operating cash flow and remains reliant on production and access to capital to meet ongoing funding requirements.

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