Nicola Mining Inc. (NASDAQ: NICM)

Nicola Mining Inc. is a junior exploration and custom milling company focused on the acquisition exploration and development of mineral properties in British Columbia Canada. The company operates the Merritt Mill and holds interests in the New Craigmont Project Treasure Mountain Project and Dominion Creek Gold Property. Its activities are directed toward advancing exploration projects while providing toll milling services to third party miners.

Revenue is generated primarily from custom milling operations at the Merritt Mill where the company processes ore supplied by clients and sells the resulting gold and silver concentrate to offtake partners. In 2025 milling revenue amounted to $1.54 million and ancillary income from gravel ash soil and other sources contributed $0.8 million. All revenue derives from external customers there are no intragroup sales.

The company operates through the following segments Mineral Exploration and Development and Custom Milling Operations.

• Mineral Exploration and Development This segment encompasses the identification acquisition and advancement of mineral properties in British Columbia. Key assets include the historic New Craigmont copper site near Merritt the Treasure Mountain silver lead zinc project near Hope and the Dominion Creek Gold Property in which Nicola holds a 50 percent interest with a 75 percent economic benefit. These projects remain in the exploration or precommercial stage and have not yet achieved production activities involve geological mapping geophysical surveys soil and rock sampling and diamond drilling with certain specialist tasks subcontracted.

• Custom Milling Operations This segment centers on the fully permitted Merritt Mill which is authorized to process up to 200 tonne per day of silver lead and gold ore. The company provides toll milling services to third party mining companies crushing grinding and flotation the ore to produce gold and silver concentrate that is sold to offtake partners such as Ocean Partners UK. Additional services include storage logistics coordination and compliance with environmental and safety regulations and the mill also generates income from gravel ash soil and other materials.

Within the mining industry Nicola Mining Inc. occupies a niche as a junior explorer and custom miller competing against larger junior and senior companies for land capital and talent in exploration while its mill faces competition from other processors on capacity turnaround and price. Its competitive advantages stem from a fully permitted 200 tonne per day facility flexible profit sharing agreements with clients and established relationships with offtake partners notably Ocean Partners UK which provides a revolving prepayment facility and purchases all of the mill’s concentrate. Limited financial resources and dependence on third party contracts however constrain its ability to scale operations.

The company’s customer base consists of third party mining firms that supply ore for toll milling including Blue Lagoon Talisker Resources Ltd and Osisko and offtake partners that purchase the concentrate principally Ocean Partners UK. These relationships provide the mill with steady feedstock and a guaranteed outlet for its product.