Company: PRMLF
Filing Date: 2025-03-20
Form Type: 10-K
Source: 0001641172-25-000043
Chunk: 320

Company: NexMetals Mining Corp.
Filing Date: 2025-03-20
Form: 10-K
Item: Item 1C
Chunk 320
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 in conformity with US GAAP requires management to make assumptions and estimates
that can affect reported amounts of assets, liabilities, revenue and expenses and the accompanying disclosures. Estimates are continuously
evaluated and are based on management’s historical experience and on other assumptions believed to be reasonable under the circumstances.
However, different estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities
affected in future periods.

The
areas involving a higher degree of complexity or significant management judgement, or areas where estimates are significant to the consolidated
financial statements are:

(a)Recoverability
                                            of exploration and evaluation assets

The
ultimate recoverability of the exploration and evaluation assets is dependent upon the Company’s ability to obtain the necessary
financing to complete the exploration and development and commence profitable production at its projects, or alternatively, upon the
Company’s ability to dispose of its interests therein on an advantageous basis. A review of the indicators of potential impairment
is at minimum carried out at each reporting period.

Management
undertakes a periodic review of these assets to determine whether any indication of impairment exists. Where an indicator of impairment
exists, a formal estimate of the recoverable amount of the assets is made. An impairment loss is recognized when the carrying value of
the assets is higher than the recoverable amount and when mineral licence tenements are relinquished or have lapsed. In undertaking this
review, management of the Company is required to make significant estimates of, among other things, discount rates, commodity prices,
foreign exchange rates, availability of financing, future operating and capital costs and all aspects of project advancement. These estimates
are subject to various risks and uncertainties, which may ultimately have an effect on the expected recoverability of the carrying values
of the assets.

(b)Asset
                                            lives for depreciation and amortization

Property,
plant and equipment comprise a large component of the Company’s assets and as such, the depreciation of these assets have a significant
effect on the Company’s financial statements. Management must make estimates of the useful lives, as well as residual values, of
each asset when calculating the depreciation of these assets. These useful life and residual value estimates are subject to various risks
and uncertainties, and an asset’s useful life may ultimately be shorter or longer than Management’s estimate, and residual
values may differ from what was originally estimated.

(c)Going
                                            concern

The
consolidated financial statements are prepared on a going concern basis unless management either intends to liquidate the Company or
has no