10-K: Bunker Hill Mining Reports 2025 Losses Amid Mine Restart Efforts

Bunker Hill Mining Corp. reported a significant net loss of $93.1 million in 2025, driven by fair value adjustments on its silver loan and warrant liabilities, as it progresses towards a targeted H1 2026 mine restart.

Summary

• Bunker Hill Mining Corp. reported a net loss of $93,132,015 for the year ended December 31, 2025, compared to a net loss of $25,341,623 for the year ended December 31, 2024.
• Operating expenses decreased to $13,595,412 in 2025 from $15,649,142 in 2024, as activities focused on capital projects were capitalized.
• The net loss was primarily impacted by a $49,386,219 loss on the fair value of the silver loan (vs. $2,820,533 loss in 2024) due to increased spot and future silver prices.
• A $6,469,025 loss on issuance of warrants related to the bought deal equity raise was recognized in 2025.
• Financing costs increased by $2,737,639 due to debt and equity transactions in 2025.
• The change in derivative liabilities increased the loss by $42,593,254 in 2025 (vs. $838,378 gain in 2024) due to increased warrants outstanding and updated key assumptions.
• Offsetting these losses were a $29,580,954 gain on debt settlement of the stream debenture and a $4,149,606 gain on revaluation of the stream debenture in 2025.
• Total current assets increased to $23,296,106 in 2025 from $9,332,639 in 2024, mainly from cash proceeds from debt and equity offerings.
• Total liabilities increased to $207,030,036 in 2025 from $149,736,915 in 2024, including $75,156,975 of warrants classified as a liability due to foreign currency risk.
• Working capital improved to a surplus of $6,458,017 in 2025 from a deficit of $20,311,773 in 2024.
• Shareholders' deficiency increased to $56,071,042 in 2025 from $52,135,365 in 2024.
• The company closed a $37,378,645 bought deal private placement in September 2025, including $19,494,060 from Teck, issuing 12,321,429 units at $3.05 per unit.
• The company acquired the Ranger Page property for approximately $4,200,000, comprised of 666,667 common shares, subject to escrow.
• A reverse stock split of one-for-thirty-five (1-for-35) was approved in January 2026 and implemented on March 6, 2026.
• The company closed the final tranche of the Silver Loan on January 30, 2026, for $4,763,110 (50,958 ounces of silver), receiving $nil after deductions.
• 571,259 warrants expired unexercised in February 2026.
• A private placement offering of units (LIFE Units) closed on March 5, 2026, raising C$27,145,500 (brokered) and C$1,606,800 (non-brokered), issuing 4,563,857 LIFE Units at C$6.30 per unit.
• A cornerstone investor exercised 840,336 warrants at C$5.95 for C$5,000,000 proceeds concurrently with the March 5, 2026 offering.

Sentiment

Score: 4

Explanation: StockSavvy.ai views this as a mixed but predominantly negative report. While operational progress and strategic financing are positive, the substantial increase in net loss and ongoing reliance on equity raises for development indicate significant financial challenges and risks for investors.

Positives

• Closed 2025 with zero Lost Time Injuries (LTIs) for the third consecutive year.
• Maintained 100% compliance with all environmental permits, crucial for operating within a U.S. Superfund site.
• Secured necessary permits from state and federal regulators for operations to restart.
• Advanced processing plant construction and commissioning to 88% completion by year-end 2025, with phased commissioning starting January 2026.
• Advanced Tailings Filter Press construction and commissioning to 56% completion by year-end 2025.
• Working capital improved significantly to a surplus of $6,458,017 in 2025 from a deficit of $20,311,773 in 2024.
• Successfully completed a major balance sheet restructuring, converting certain debt into equity and modifying royalty/stream financing arrangements.
• Acquired the Ranger Page property, adding six past-producing high-grade silver-lead-zinc mines adjacent to the Bunker Hill Mine.
• The Pre-Feasibility Study indicates an after-tax Internal Rate of Return (IRR) of 36% for the Bunker Hill Mine restart, with a payback period of 2.1 years.

Negatives

• Reported a substantial net loss of $93,132,015 for the year ended December 31, 2025, significantly higher than the $25,341,623 loss in 2024.
• Incurred a $49,386,219 loss on the fair value of the silver loan in 2025, primarily due to increased spot and future estimated silver prices.
• Recognized a $6,469,025 loss on issuance of warrants related to the bought deal equity raise.
• Financing costs increased by $2,737,639 in 2025.
• The change in derivative liabilities resulted in a $42,593,254 loss in 2025.
• Shareholders' deficiency increased to $56,071,042 in 2025 from $52,135,365 in 2024.
• The company has a history of losses and negative cash flow from operating activities, expecting this to continue until commercial production.
• The EPA agreed to forebear enforcement of late payments for the November 2025 payment, indicating potential payment difficulties or ongoing negotiations regarding environmental obligations.

Risks

• The estimated timing and budget for the Bunker Hill Mine restart are subject to change, potentially requiring additional capital and adversely affecting financial condition.
• Inability to secure additional funding could prevent timely development or continuation as a going concern.
• Payment bonds securing $14,000,000 due to the EPA may not be renewable or may only be renewable on unfavorable terms, potentially leading to default.
• Commodity price volatility (silver, lead, zinc) could dramatically affect planned operations, ability to secure financing, and repayment of contractual obligations.
• Development and production plans, metal recoveries, and cost estimates in the Technical Report Summary may vary or not be achieved, potentially leading to capital investment loss.
• Costs charged by the Idaho Department of Environmental Quality (IDEQ) for wastewater treatment fluctuate and are not within the company's control, impacting expenses.
• Estimates of mineral reserves and resources are subject to evaluation uncertainties, which could lead to project failure if estimates prove unreliable.
• Mineral exploration activities may not be commercially successful, leading to abandonment of development plans and loss of investments.
• Subject to significant governmental regulations that can increase costs and restrict operations; inability to maintain required permits and licenses could halt production.
• Environmental laws and regulations may change, increasing costs or restricting operations, and unknown environmental hazards from previous owners could lead to unpredictable liabilities.
• Social and environmental activism could adversely affect reputation, financial condition, or relationships with communities.
• The mining industry is highly competitive, potentially hindering acquisition of properties or retention of qualified employees.
• Shortages of equipment and supplies could adversely affect the ability to operate.
• Joint ventures and partnerships, including offtake arrangements, may expose the company to burdensome costs or business risks.
• Difficulty attracting and retaining qualified management and personnel could impair operational efficiency.
• Potential conflicts of interest with directors and officers due to other business associations.
• Currency fluctuations between USD and CAD could affect results of operations.
• Title to properties may be subject to other claims or undetected defects.
• Inability to secure or purchase additional required surface rights could delay or prevent mining activities.
• Properties and operations may be subject to litigation or other claims, diverting resources and management time.
• Extraordinary operating risks in mineral exploration and development, with limited insurance coverage, could lead to liabilities exceeding resources.
• Dependence on adequate infrastructure (roads, power, water) for exploration and development.
• Sales of substantial amounts of securities will have a highly dilutive effect on ownership or share structure, potentially decreasing stock price.
• The company has never paid dividends and does not expect to in the foreseeable future.
• FINRA sales practice requirements may limit investors' ability to buy and sell common stock.
• Failure to satisfy TSXV and OTCQB listing criteria may result in delisting or removal of trading.
• Risks related to compliance with corporate governance laws and financial reporting standards, including Sarbanes-Oxley Act Section 404.

Future Outlook

The company's primary focus remains the development and restart of the Bunker Hill Mine, with planned operations to commence in H1 2026. Management expects to continue incurring losses until commercial production begins. Discussions are ongoing with the EPA and IDEQ to restructure environmental obligations. The company aims to optimize operating margins by targeting higher silver extraction rates and strengthening organizational capabilities for a stable and efficient ramp-up. Further exploration activities are planned to guide future efforts outside historical mine working areas and increase conversion of inferred resources to indicated resources.

Management Comments

• Management focused on the disciplined execution of the Bunker Hill Mine restart plan, prioritizing safety, environmental stewardship, infrastructure readiness, technical de-risking, and organizational development.
• The company believes its plans, intentions, and expectations reflected in forward-looking statements are reasonable, but cannot be certain they will be achieved.
• Management has applied judgment that there are no material uncertainties related to events or conditions that may cast substantial doubt on the Company's ability to continue as a going concern, despite past losses.

Industry Context

StockSavvy.ai notes that Bunker Hill Mining Corp.'s focus on restarting a historic polymetallic mine (zinc-lead-silver) aligns with broader industry trends of re-evaluating and bringing older, high-potential assets back into production, especially given current commodity price environments. The significant capital raises and debt restructuring highlight the substantial financing challenges typical for development-stage mining companies. The strategic partnerships with major players like Teck Resources and Sprott Streaming and Royalty Corp. are critical for de-risking and providing necessary capital and offtake agreements, a common strategy in the capital-intensive mining sector. The emphasis on environmental compliance within a Superfund site also reflects increasing regulatory scrutiny and ESG (Environmental, Social, and Governance) considerations in the mining industry.

Comparison to Industry Standards

• The projected after-tax IRR of 36% and a payback period of 2.1 years for the Bunker Hill Mine restart, as per the Pre-Feasibility Study, are highly attractive metrics compared to many new mining projects globally, which often see IRRs in the 15-25% range and longer payback periods (e.g., large-scale copper or gold projects might have 3-5 year paybacks).
• Overall recoveries estimate confirmed at 89% for silver, 87% for lead, and 92% for zinc are competitive with modern polymetallic processing plants, such as those operated by companies like Hudbay Minerals (e.g., Constancia mine) or Lundin Mining (e.g., Neves-Corvo mine), which typically aim for recoveries in the high 80s to low 90s for base metals.
• The company's achievement of zero Lost Time Injuries (LTIs) for three consecutive years sets a high standard for safety, comparable to best-in-class performance seen in major mining companies like Barrick Gold or Newmont, which prioritize stringent safety protocols.
• The initial exercise price of $0.30 per Warrant Share (pre-reverse split) and C$8.75 (post-reverse split) for the June 2025 warrants, and C$5.95 for the September 2025 warrants, reflects market valuations and financing terms typical for junior mining companies raising capital in challenging market conditions, often at a discount to prevailing share prices or with significant warrant coverage to attract investors.

Corporate Governance

Legal Proceedings

• The company is a defendant in a lawsuit filed by Crescent Mining, LLC, alleging intentional flooding of the Crescent Mine between 1991 and 1994, and seeking unspecified damages for acid mine drainage. The company believes the lawsuit is without merit and is vigorously defending itself.
• The U.S. District Court for the District of Idaho granted in part and denied in part the company's motion to dismiss Crescent's claims, dismissing cost recovery, declaratory judgment, tortious interference, trespass, nuisance, and negligence claims without prejudice.
• The lawsuit is advancing through the discovery and pre-trial phase, with a mediation session attended during 2025.
• On December 12, 2025, Americas Gold and Silver Corporation acquired Crescent Silver, LLC, which owns the Crescent Mine.
• The company previously asserted claims against Crescent in a separate lawsuit, Bunker Hill Mining Corporation v. Venzee Technologies Inc. et al, which has since been consolidated into the lawsuit Crescent filed.

Related Party Transactions

• Teck Resources Limited became a related party in 2025, holding more than 10% of the company's common stock after participating in the 2025 Private Placements.
• Sprott Streaming and Royalty Corp. (Sprott) is a related party, holding approximately 29.6% of the issued and outstanding common stock (39.1% on a partially diluted basis) after various transactions in 2025.
• In January 2025, the company drew $11,000,000 on the Sprott debt facility, granting Sprott a 1.0% life-of-mine gross revenue royalty (0.70% outside historically worked areas).
• In January 2025, the company issued 203,402 shares to Sprott to satisfy interest payments under outstanding convertible debentures.
• In June 2025, Sprott acquired 285,715 units in the brokered offering at C$5.25 per unit.
• The existing metals purchase agreement with Sprott ($46,000,000 deposit) was terminated and exchanged for 5,714,286 common shares, $4,000,000 Series 3 convertible debentures, and an additional 1.65% life-of-mine gross revenue royalty.
• Debt settlement agreements with Sprott resulted in the issuance of 1,819,728 common shares at the Offering Price to satisfy $487,500 of unpaid interest and $6,200,000 of principal and interest under the Debt Facility.
• The Debt Facility with Sprott was amended and restated, reducing the principal from $21,000,000 to $15,000,000, increasing the secondary claims percentage under an additional royalty, and canceling a royalty buyback option.
• The company entered into a customary investor rights agreement with Sprott, granting Sprott the right to appoint one nominee (or an observer) to the Board.
• Teck acquired 5,579,848 units in the non-brokered offering at C$5.25 per unit for approximately $20,500,000 in June 2025.
• Teck acquired 6,393,906 units for $19,494,060 in the September 2025 brokered private placement.
• Teck became a Control Person, owning approximately 23.9% of issued and outstanding common stock (31.4% partially diluted) after the June 2025 offering.
• The company entered into a customary investor rights agreement with Teck, granting Teck certain pre-emptive and information rights, including the right to appoint one nominee to the Board, as long as Teck holds 10% or more of outstanding common stock.
• The uncommitted revolving standby prepayment facility of up to $10,000,000 (SP Facility) with Teck was amended, bearing interest at 13.5% until June 30, 2027, and 15.0% thereafter, secured by a security interest over all assets.
• Zinc and lead offtake agreements with Teck were amended to apply to life-of-mine production rather than a five-year term.
• The company settled outstanding receivables and other amounts owing with certain creditors, contractors, and directors (including Participating Directors) through the issuance of equity securities at the Offering Price in June 2025.
• An equity payment agreement with C & E Tree Farm, L.L.C. resulted in the issuance of 136,055 units to satisfy $500,000 of a land purchase option price.

Stakeholder Impact

• Shareholders experienced significant dilution from multiple equity raises in 2025 and early 2026, and the reverse stock split. The increased net loss and shareholders' deficiency negatively impact shareholder value.
• Employees benefit from continued employment and equity incentive plans, but the company's financial challenges and reliance on external funding pose risks to long-term stability.
• Customers (smelters like Teck) benefit from long-term offtake agreements, securing a stable supply of concentrates.
• Creditors (Sprott, Monetary Metals, Teck) have significant financial interests, with debt restructuring and security interests protecting their investments, but also indicating the company's high leverage.
• Regulatory bodies (EPA, IDEQ, TSXV, SEC) are actively involved in oversight, particularly regarding environmental compliance and securities regulations, impacting the company's operational and financial flexibility.
• Local communities benefit from continued mine development activities and employment opportunities, but environmental risks and potential delays in operations remain concerns.

Next Steps

• Commence mine restart in H1 2026.
• Continue phased commissioning of the processing plant, starting January 2026.
• Install Metso Filter Press in the Tailings Filter Press in Q1 2026.
• Advance ramp development to 9-Level to access additional silver exploration opportunities.
• Continue discussions with the EPA and IDEQ to advance a second amendment to the Amended Settlement Agreement to restructure ongoing obligations.
• Conduct continued analysis and interpretation of geophysical survey results to guide future exploration activities.
• Undertake additional exploration drilling with the advancement of underground mine development.
• Continue digitization and interpretation of historical mapping and research.
• Complete issued for construction (IFC) level drawings for mineral processing facilities and paste backfill plant.
• Optimize binder compositions for backfill to potentially reduce operating expenses.
• Conduct additional geotechnical studies with the advancement of underground development.
• Continue geotechnical diamond drilling associated with future resource delineation and exploration drilling activities.
• Continue resource delineation and conversion drilling and mine block modeling to increase conversion of inferred resources to indicated resources.

Key Dates

Recommendation

Bunker Hill Mining Corp. is in a critical development phase, marked by substantial capital raises and a complex balance sheet restructuring aimed at restarting the Bunker Hill Mine. While the projected IRR of 36% and a 2.1-year payback period from the Pre-Feasibility Study are attractive, the company reported a significantly increased net loss in 2025, driven by non-cash fair value adjustments and financing costs. The ongoing reliance on equity financing, despite improving working capital, indicates continued financial risk. Strategic partnerships with Teck and Sprott provide crucial support and offtake agreements, but also introduce governance complexities and debt covenants. The implementation of a reverse stock split and ongoing environmental negotiations add layers of uncertainty. Given the high-risk, high-reward nature of mine development, coupled with recent financial losses and the need for successful execution of the restart plan, a 'hold' recommendation is appropriate. Investors should monitor progress on the mine restart, commodity prices, and the resolution of environmental obligations before making further investment decisions.

Keywords

Mining, Silver, Lead, Zinc, Bunker Hill Mine, Mineral Exploration, Mine Development, SEC Filing, Financial Results, Equity Raise, Debt Restructuring, Warrants, Convertible Debentures, Environmental Compliance, Idaho, TSX Venture Exchange, OTCQB, Sprott, Teck Resources, Monetary Metals, Pre-Feasibility Study