Scandium Canada Ltd. (TSX-V: SCD) has provided a comprehensive update on its alloy commercialization, Crater Lake drilling program, and financial results for the third quarter ended May 31, 2026. The company reported promising preliminary results from its SC7075 welding wire trials, advancing commercial discussions, and the strongest balance sheet in its history.
The alloy strategy advanced on four fronts: promising preliminary results from SC7075 Al-Sc welding wire for Wire Arc Additive Manufacturing (WAAM), widening commercial opportunities with Granges Powder Metallurgy, advancing discussions with Alpomet on welding-wire applications, and the acquisition of Scalium+ (formerly Ferreol Technologies). Wire samples of the patent-pending SC7075 alloy were shipped for WAAM trials, demonstrating the ability to produce structures comparably to commercial wire without scandium. Work now focuses on optimizing deposition parameters, with potential demand of up to 30 tonnes per year of scandium oxide. Rods of the SC535 alloy also show promise in high-temperature applications.
Under the Memorandum of Understanding with Granges Powder Metallurgy, work is expanding to cover powders and plates, identifying commercial opportunities in energy and defence with European OEMs. Discussions with Alpomet on welding-wire applications are actively advancing. On June 29, 2026, the company closed the acquisition of Ferreol Technologies, now Scalium+ Inc., its wholly owned alloy commercialization subsidiary. Scalium+ brings an established Quebec City commercial team, active alloy clients, and a proven production workflow. One Scalium® alloy is already commercialized, and internal testing under controlled conditions showed strength results up to 45% higher than typical AA7075 aerospace aluminum.
Luc Duchesne, Ph.D., Chief Science Officer of Scalium+, commented on the preliminary results: "We have demonstrated that we can produce structures by WAAM with our SC7075 wire. Next, we aim to optimize deposition parameters with our collaborator, while our work with Granges and discussions with Alpomet continue to identify prototyping opportunities." Felix Lapointe, CEO of Scalium+, added: "Two weeks in, the priority is simple: keep serving our existing alloy clients while opening the order book to the alloys developed by Scandium Canada."
The company also reported its Q3 financial results, highlighting $11.6 million in cash, a twenty-nine-fold increase from $0.4 million at August 31, 2025. Working capital reached $15.2 million, a $16.6 million swing from negative working capital. Total assets hit $31.9 million, and total equity was $30.2 million, both more than double their levels from August 31, 2025. Total liabilities were reduced to $1.6 million, with all unsecured loans repaid in full. The expansion was funded by equity, including a $17.25 million bought deal in March 2026. Management believes the funds are sufficient for at least the next twelve months.
Guy Bourassa, CEO of Scandium Canada, stated: "At the midpoint of the field season, the Company is executing the plan presented to shareholders in April: the drill is turning at Crater Lake, our SC7075 wire is showing promising results for structures produced by WAAM, and our newly acquired Scalium+ subsidiary gives us a commercial team selling alloys today. With $11.6 million in cash and the strongest balance sheet in our history, we are funded for the catalysts ahead."
The 2026 diamond drilling campaign at Crater Lake is advancing on schedule, managed by Laurentia Exploration. The program is primarily dedicated to collecting a representative metallurgical bulk sample of 8 to 10 tonnes for feasibility study support. WSP’s environmental assessment work is proceeding on schedule, with field teams conducting fauna and flora inventories, fish habitat surveys, and hydrogeological and geochemical studies. Field operations have been conducted without any reported injuries or incidents.
The scientific and technical information has been reviewed and approved by Eric Kinnan, P.Geo., an independent consulting geologist and Qualified Person as defined by National Instrument 43-101. The company's financial reports are available on SEDAR+ at www.sedarplus.ca and at scandium-canada.com/financial-reports/.
