Yugo Metals Limited (ASX: YUG) (Yugo or the Company) has delivered a solid December quarter performance, marked by the successful completion of a $3.5 million capital raise and the commencement of diamond drilling at its flagship Sinjakovo Project in Bosnia and Herzegovina. The Company has intersected visible mineralisation in initial drilling and expanded its European investor reach through dual listings on the Frankfurt and Düsseldorf Stock Exchanges.
The battery and precious metals explorer is now fully funded to advance an aggressive exploration program targeting high-grade silver, zinc, and lead mineralisation across its 80.8 square kilometre Sinjakovo tenement.
Premium-Funded Drilling Campaign Underway
Yugo completed a two-tranche placement of 77,777,778 fully paid ordinary shares at $0.045 per share during the quarter, raising $3.5 million before costs. The placement included one free attaching unlisted option for every two shares issued, with options exercisable at $0.10 and expiring three years from issue.
CPS Capital Group acted as Lead Manager and received 4,666,667 shares and 45 million unlisted options as part of the consideration for services.
The capital raise positions the Company to execute a comprehensive diamond drilling program at the Kovacevac Prospect, located within the historically productive Sinjakovo Project area.
Figure 1: Map showing current and planned drilling locations across the Sinjakovo and Jezero tenements [Yugo Metals Limited]
Initial Drilling Intersects Silver-Zinc-Lead Mineralisation
Drilling commenced at the Kovacevac Prospect in November 2025, with four diamond drillholes completed for a total depth of 279 metres from the first drilling pad.
The eastern-most hole, KVDD001, has intersected silver-zinc-lead mineralisation with over 1.8 metres of drilling width of sphalerite and galena from 27.7 metres depth. The intersection comprises disseminated mineralisation (1-5% total sulphides), including 0.2 metres of semi-massive mineralisation (30-40%) immediately adjacent to a 0.3 metre core loss interval.
Other holes drilled down-dip and along strike to the west have intersected weaker or narrower mineralised intervals, suggesting mineralisation could potentially improve along strike to the east.
The drillcore has been logged and samples shipped to the ALS laboratory in Bor, Serbia, with assay results pending.
Yugo’s Executive Director and Interim CEO, Petar Tomašević, indicated that another drillhole is planned from the current pad to test the potential eastward extension of mineralisation. The drilling rig will then move to the prepared western pad to drill a fan of holes on the western side of the Kovacevac Prospect.
Figure 2: Cross-section showing drillholes KVDD001 and KVDD004 with visible mineralisation zones [Yugo Metals Limited]
Strategic European Expansion Through Dual Listing
During the quarter, Yugo completed dual listing of its ordinary shares on the Frankfurt and Düsseldorf Stock Exchanges (FRA, DUS: L71), while maintaining its primary ASX listing.
The dual listing significantly expands the Company’s access to European institutional and retail investors at a time of heightened interest in base and precious metal projects capable of supplying European demand for battery and industrial metals.
The Company appointed Stefan Lindham, principal at Aktiencheck.de AG, as European investor relations adviser to assist in broadening its investor base across the continent.
$385,000 VAT Refund Demonstrates Improved Government Relations
On 6 November 2025, Yugo received a historic VAT refund of approximately $385,000 from the Bosnia-Herzegovina indirect taxation authority (UIO BiH). The refund, which had been previously written off, highlights effective fiscal management and significantly improved relations with local authorities.
The unexpected cash injection demonstrates the Company’s operational efficiency and strong working relationship with government agencies in the region.
Sockovac Project Advances Toward Tenement Approval
The Company continued community engagement and consultations with key stakeholders during the period. Yugo is engaged in consultations with the Government regarding pending approval of the Petrovo tenement (10 square kilometres).
The Petrovo area encompasses historical 1969 drilling results showing:
- 1 metres @ 6.6% nickel from 57.9 metres depth (cobalt not analysed)
- 35 metres @ 8.2% zinc+lead from 41.8 metres depth (silver and gold not analysed)
Recent surface work has identified gold-silver mineralisation with rock-chip results up to 5.7 g/t gold and 1,330 g/t silver.
Management remains optimistic about a favourable outcome and continues ongoing discussions with advisers at the Ministry of Energy and Mining.
Figure 3: Sockovac (Petrovo) cross-section showing historical drill holes with interpreted geology and high-grade nickel intersections [Yugo Metals Limited]
Market Context: Base and Precious Metals Demand Strengthening
Yugo’s exploration focus aligns with strengthening fundamentals across multiple commodity markets.
Silver Market Dynamics
The global silver market is experiencing robust demand driven by industrial applications, particularly in photovoltaics and electronics. According to the Silver Institute, industrial silver demand reached record levels in 2024, with solar panel manufacturing accounting for approximately 20% of total demand.
Silver prices have shown resilience, trading around USD $110-115 per ounce in early 2026, supported by supply deficits and expanding industrial use cases.
Figure 4: 30 days Silver Price Chart [Kitco]
Zinc and Lead Market Outlook
Global zinc consumption is forecast to grow at a CAGR of 1.5% from 2026 to 2030, driven by galvanising demand from infrastructure development and construction activity, particularly in emerging markets.
Lead demand continues to be supported by battery manufacturing, with the lead-acid battery market expected to reach USD $84.8 billion by 2030, according to Grand View Research.
Figure 5: Lead Acid Battery Market [Grand View Research]
The European Union’s focus on securing domestic critical mineral supply chains creates additional strategic value for projects like Sinjakovo, located within the prolific Tethyan metallogenic belt.
Strong Cash Position Supports Aggressive Exploration
Net cash inflow during the quarter was approximately $2.6 million, leaving Yugo with a cash balance of approximately $3.2 million as at 31 December 2025.
The Company’s quarterly cash burn of approximately $843,000 provides an estimated $3.83,000 quarters of funding at current activity levels, providing a solid runway for the drilling campaign and assay results.
Exploration and evaluation expenditure during the quarter totalled $445,000, focused primarily on the Kovacevac drilling program.
Corporate Structure and Exploration Licences
At quarter end, Yugo held 100% interest in exploration licences across three project areas in Bosnia and Herzegovina:
- Sinjakovo (including Jezero) – approximately 80.8 square kilometres
- Sockovac – approximately 49 square kilometres at Doboj (excluding Petrovo application area)
- Cajnice – approximately 49.5 square kilometres
The Company’s capital structure as at the date of the quarterly report comprised:
- Fully paid ordinary shares: 320,564,115
- Listed options (YUGOB): 99,547,000 (exercise price $0.02, expiry 15 August 2028)
- Unlisted options: 124,628,406 across various tranches
- Performance rights: 34,835,000 (Class A and Class B)
Related party payments during the quarter were limited to director salaries and fees totalling $99,000.
Investor Outlook and Share Price Performance
Yugo Metals Limited (ASX: YUG) is currently trading at $0.051 per share as of 30 January 2026, within its 52-week range of $0.008 to $0.070.
The Company’s market capitalisation stands at approximately $17.95 million, with 320.56 million shares on issue.
Figure 6: YUG Price Chart [ASX]
Key Investment Highlights:
- Fully funded exploration program following $3.5 million placement
- Visible mineralisation intersected in initial drilling at Kovacevac
- Assay results pending from ALS laboratory (expected Q1 2026)
- Dual European listing expanding investor reach
- Strategic location in Europe’s Tethyan metallogenic belt
- Multiple high-priority targets across 180 square kilometres of tenure
- Improved government relations demonstrated by VAT refund
- Low-cost jurisdiction with established mining infrastructure
Near-Term Catalysts:
- Assay results from Kovacevac drilling program
- Additional drilling from eastern and western pads
- Petrovo tenement approval decision
- Potential resource estimate at Kovacevac upon successful drilling
- Exploration updates from regional prospects (Erak, Zekil, Krajevi)
Looking Ahead: Systematic Exploration Across Multiple Prospects
The January 2026 quarter will see continued drilling activity as Yugo tests both eastern extensions and western targets at Kovacevac. The Company is taking a methodical approach, using initial assay results to guide pad preparation and drill targeting for maximum efficiency.
Beyond Kovacevac, Yugo has identified multiple high-priority prospects across the Sinjakovo tenement, including the Sinjakovo, Erak, and Zekil prospects, as well as targets within the Jezero tenement area.
The combination of visible mineralisation, strategic European positioning, and improving relationships with local authorities positions Yugo as an emerging player in the European critical minerals space.
With a strong cash position, active drilling campaign, and pending assay results, the Company is executing a systematic exploration strategy designed to unlock value across its Bosnia and Herzegovina portfolio.
