Cornish Metals Releases Unaudited Financial Statements and Management's Discussion and Analysis for the Nine Months Ended 30 September 2025

The most recent news release from November 13, 2025, details Cornish Metals Inc.'s unaudited financial statements and Management's Discussion and Analysis for the nine months ended September 30, 2025 (Q3 2025).

Key highlights include: - Financial Performance (Q3 2025): The company reported a net loss of CAD 10,493,952 and total operating expenses of CAD 10,690,412. Net cash used in operating activities was CAD 9,060,081, and net cash used in investing activities was CAD 28,271,892. Cash at the end of the period was CAD 60,688,280, significantly boosted by CAD 87,593,355 provided by financing activities. - South Crofty Project Update: Activities at the South Crofty tin project are progressing, with current work focused underground on the mid-shaft pump station and the commencement of Level 1 development. On the surface, excavation and construction of workshop and stores buildings are underway. - Updated Preliminary Economic Assessment (PEA): The recent completion of a project review and updated PEA for South Crofty shows an after-tax NPV of £180 million and an Internal Rate of Return (IRR) of 20%. The PEA projects average annual tin production of over 4,700 tonnes for years two through six, with All-In Sustaining Costs (AISC) under US$13,500 per tonne. First tin production is targeted for mid-2028. The CEO, Don Turvey, expressed satisfaction with the project's attractive economics and its expected position as a long-life, lowest quartile cost, and highly cash-generative producer. - Financing Closure: The company closed a private placement fundraise, raising a gross proceeds of CAD 105,361,387 (equivalent to £57.4 million). Strategic investors, National Wealth Fund Limited and Vision Blue Resources Limited, participated, intending to further de-risk the project and advance towards a formal Final Investment Decision (FID) in 2026. This fundraise was primarily completed in Q1 2025 but acknowledged again in the Q3 report. - Corporate Action: Plans for re-domiciliation from Canada to the UK are advancing, with an effective date for share consolidation (10:1 ratio) and application for AIM listing set for December 18, 2025. A special shareholder meeting to approve the arrangement is scheduled for December 3, 2025. - Management Appointments: Dave Howe was appointed General Manager and Guillermo Alcazar as Project Director (effective April 27, 2025), strengthening the project and operations teams.

The most recent news release is largely a routine quarterly update that confirms the progress of previously announced initiatives and financial standing. The significant financing event (CAD 105.36M / £57.4M), which substantially bolstered the cash position to CAD 60.69M, was already completed and disclosed in tranches earlier in 2025 (Jan-Mar). This funding was crucial for continuing project development and provided a projected runway until the end of Q1 2026.

The updated PEA for South Crofty, while portraying "attractive economics" according to the CEO, reveals a more nuanced picture compared to the previous PEA (April 30, 2024). The new PEA (effective September 6, 2023, filed October 16, 2025) now shows: - After-tax NPV6% of £180 million (approx. US$235 million at GBP/USD 1.30), which is nominally higher than the previous US$201 million NPV8%. However, the discount rate has been reduced from 8% to 6%, which inherently increases NPV. - After-tax IRR of 20%, a notable decrease from the 29.8% reported in the April 2024 PEA. A lower IRR implies a less attractive return on capital and a longer payback period, which is a material negative from an investment efficiency perspective. - Pre-production Capital Expenditure (CAPEX) is now stated at £198 million, an increase from the US$177 million previously, contributing to the lower IRR. - The target for first tin production has been confirmed as mid-2028, a delay from the previous projection of 2027, which was already announced in the July 24, 2025 news. - AISC is slightly improved at under US$13,500 per tonne (for years 2-6) compared to US$13,661 per tonne (LOM) in the previous PEA.

From a critical equity analyst's perspective, the decrease in IRR and increase in CAPEX, coupled with the delayed production timeline, present a less favourable economic profile for the project, despite the nominally higher NPV (achieved with a lower discount rate). The company has successfully secured short-to-medium-term funding, but substantial project financing for the full CAPEX (currently £198 million) is still required.

The corporate re-domiciliation and share consolidation are administrative actions that have been communicated previously and are proceeding as planned, with no new surprises in this release. The insider dealings (exercising options and selling shares, or buying shares) noted in recent news are routine corporate events and don't signal a material change in company fundamentals.

Overall, this news provides an expected financial update and confirms previously announced project economics and corporate restructuring plans. It does not introduce new information that would fundamentally alter the investment thesis in an overwhelmingly positive or negative way, especially given the mixed signals from the updated PEA regarding IRR. The market has largely priced in the financing and project delays.

Cornish Metals Inc. is a Canadian mining company focused on the exploration and development of mineral projects in Cornwall, United Kingdom. Its flagship asset is the South Crofty Tin Project, a historical, high-grade, underground tin mine located in Cornwall.

Flagship Project - South Crofty Tin Project: - Commodity: Tin, classified as a critical mineral by the UK, USA, and Canadian governments, essential for electronics, electric vehicles, and renewable infrastructure. The project aims to become the only primary producer of tin in Europe or North America, reducing reliance on supply concentrated in Asia. - Stage: The project is currently in the pre-production development phase, with ongoing mine dewatering, shaft refurbishment, and surface infrastructure construction. - Development: - History: South Crofty is a historical mine with significant existing infrastructure, including multiple shafts. It has fully permitted underground mining operations (valid until 2071), a new processing facility, and all necessary site infrastructure. - Updated Preliminary Economic Assessment (PEA - September 6, 2023, filed October 16, 2025): - After-tax NPV6%: £180 million (approx. US$235 million). - After-tax IRR: 20%. - Capital Payback Period: 3.3 years (after-tax). - Average Annual Tin Production (Years 2-6): Over 4,700 tonnes. - Life of Mine (LOM): 14 years. - LOM All-In Sustaining Costs (AISC): Under US$13,500 per tonne (for years 2-6). - Pre-production Capital Expenditure (Capex): £198 million. - Target First Tin Production: Mid-2028. - Current Activities: Dewatering of the New Cook's Kitchen (NCK) shaft is progressing, alongside refurbishment. Surface works for a processing plant and other facilities have begun. Long-lead items, such as production and service winders, have been ordered. The company has acquired additional land adjacent to the project to facilitate infrastructure development. - Exploration Potential: A near-mine exploration target identified in the Lower Mine area (6Mt to 13Mt at 0.5% to 1.8% tin) indicates significant upside potential beyond the current mineral resource.