Company: PRMLF
Filing Date: 2025-03-20
Form Type: 10-K
Source: 0001641172-25-000043
Chunk: 188

Company: NexMetals Mining Corp.
Filing Date: 2025-03-20
Form: 10-K
Item: Item 1B
Chunk 188
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Audit Matter Description

As
described in Note 1, the Company, being in the exploration stage, is subject to risks and challenges similar to companies in a comparable
stage. These risks include the challenges of securing adequate capital for exploration and operational risks inherent in the mining industry,
and global economic and metal price volatility and there is no assurance management will be successful in its endeavors. The ability
of the Company to continue operations as a going concern is ultimately dependent upon achieving profitable operations and its ability
to obtain adequate financing. To date, the Company has not generated profitable operations from its resource activities and will need
to invest additional funds in carrying out its planned exploration and operational activities. Management has prepared future cash flow
forecasts, which involves judgement and estimation of key variables, such as planned financing and capital and operational expenditures.
Future economic conditions and effects of key events subsequent to the year end, such as debt and equity financing, also impacted management’s
judgements and estimates. We identified the Company’s ability to continue as a going concern as a critical audit matter because
auditing the Company’s going concern assessment is complex and involves a high degree of auditor judgment to assess the reasonableness
of the cash flow forecasts, planned refinancing actions and other assumptions used in the Company’s going concern analysis. The
Company’s ability to execute the planned refinancing actions are especially judgmental given that the global financial markets
and economic conditions have been, volatile. This matter is also described in the “Material Uncertainty Related to Going Concern”
section of our report.

Audit
Response

We
responded to this matter by performing procedures over management’s assessment of the Company’s ability to continue as a
going concern. Our audit work in relation to this included, but was not restricted to, the following:

    ●
    We evaluated
    the cash flow forecasts prepared by management and evaluated the integrity and arithmetical accuracy of the model.

    ●
    We evaluated the key assumptions
    used in the model to estimate future cash flows for a reasonable period of time, not exceeding 12 months from the date of the consolidated
    statements of financial position, by comparing assumptions used by management against budgets, economic and industry indicators and
    publicly available information.

    ●
    We evaluated the key assumptions
    pertaining to estimated cash flows from operating activities and expected cash flows from financing activities, underlying agreements, private placement raises and subsequent events thereafter.

    ●
    We assessed the adequacy
    of the going