Scandium Canada Ltd. (TSX-V: SCD) provided an update on its alloy commercialization, drilling at the Crater Lake project, and financial results for the third quarter ended May 31, 2026. The company reported promising preliminary results from its SC7075 aluminum-scandium welding wire trials and advancing commercial discussions, while its 2026 drilling campaign at Crater Lake in Nunavik, Quebec, remains on schedule.
The company's alloy strategy advanced on four fronts: promising preliminary results from its SC7075 Al-Sc welding wire, expanding opportunities with Granges Powder Metallurgy, advancing discussions with Alpomet on welding-wire applications, and the successful acquisition of Scalium+ (formerly Ferreol Technologies). Wire samples of the patent-pending modified SC7075 alloy have been shipped for Wire Arc Additive Manufacturing (WAAM) trials, with preliminary results showing the ability to produce structures comparably to commercial wire without scandium. This application alone could generate demand of up to 30 tonnes per year of scandium oxide, a market segment that does not currently exist.
Work under the Memorandum of Understanding with Granges Powder Metallurgy is expanding, now covering powders and plates, with commercial opportunities identified 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, consolidating the commercialization of the company's Al-Sc alloys and Scalium® line. One Scalium® alloy is already commercialized, and based on internal testing, some Scalium® alloys demonstrated strength results up to 45% higher than typical AA7075 aerospace aluminum.
Luc Duchesne, Ph.D., Chief Science Officer of Scalium+, commented: “Our preliminary results are promising: 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 our 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 filed its Q3 financial report, showing a record balance sheet with $11.6 million in cash (a twenty-nine-fold increase from $0.4 million at August 31, 2025) and working capital of $15.2 million, a $16.6 million swing from negative working capital. Total assets reached $31.9 million and total equity $30.2 million, both more than double their previous levels, while total liabilities reduced to $1.6 million with all unsecured loans repaid. The expansion was funded by equity, including a $17.25 million bought deal completed 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.”
The 2026 diamond drilling campaign at Crater Lake is advancing on schedule under Laurentia Exploration, primarily dedicated to collecting a representative metallurgical bulk sample of 8 to 10 tonnes for the feasibility study. WSP's environmental assessment work is proceeding with fauna, flora, fish habitat, hydrogeological, and geochemical studies. Field operations have been conducted without any reported injuries.
Qualified Person Eric Kinnan, P.Geo., has reviewed and approved the scientific and technical information. The company's financial statements are available on SEDAR+ at www.sedarplus.ca and at scandium-canada.com/financial-reports/.
