Scandium Canada Ltd. (TSX-V: SCD) provided an update on its alloy commercialization, the 2026 drilling campaign at the Crater Lake scandium project, and its financial results for the third quarter ended May 31, 2026. The company reported promising preliminary results from its SC7075 aluminum-scandium welding wire, advancing commercial discussions, and the strongest balance sheet in its history.
Preliminary wire samples of the company's patent-pending SC7075 alloy were shipped to a collaborator for Wire Arc Additive Manufacturing (WAAM) trials. The wire demonstrated the ability to produce structures comparably to commercial wire without scandium, with work now focused on optimizing deposition parameters. This application alone could generate demand of up to 30 tonnes per year of scandium oxide, a market segment that does not currently exist. Rods of the SC535 alloy also show promise in high-temperature applications.
Work under the Memorandum of Understanding with Granges Powder Metallurgy is expanding to cover powders and plates, with commercial opportunities identified in energy and defence with European OEMs. Discussions with Alpomet on welding-wire applications are actively advancing, signaling industrial interest in qualified, weldable, high-strength aluminum wire.
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 some Scalium® alloys demonstrated strength results up to 45% higher than typical AA7075 aerospace aluminum under controlled conditions.
Luc Duchesne, Ph.D., Chief Science Officer of Scalium+, commented on the progress, emphasizing the optimization of deposition parameters and continued identification of prototyping opportunities. Felix Lapointe, CEO of Scalium+, noted the priority of serving existing clients while opening the order book to alloys developed by Scandium Canada.
The company also reported record financial results for the third quarter. As of May 31, 2026, cash stood at $11.6 million, 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, with total assets of $31.9 million and total equity of $30.2 million. 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 completed in March 2026. Management believes current funds are sufficient to meet obligations for at least the next twelve months.
Guy Bourassa, CEO of Scandium Canada, highlighted the execution of the plan: the drill turning at Crater Lake, promising SC7075 wire results, and the newly acquired Scalium+ subsidiary. The 2026 diamond drilling campaign at Crater Lake is advancing on schedule, primarily focused on collecting a representative metallurgical bulk sample of 8 to 10 tonnes for the future feasibility study. 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 operational incidents.
The scientific and technical information has been reviewed and approved by Eric Kinnan, P.Geo., a Qualified Person as defined by National Instrument 43-101.
