Company: PRMLF
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022391
Chunk: 80

Company: NexMetals Mining Corp.
Filing Date: 2025-11-13
Form: 10-Q
Item: Item 1
Chunk 80
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 at September 30, 2025, and December 31, 2024 is $nil.

The
Company’s financial instruments are exposed to certain risks as discussed below:

Interest
Rate Risk

The
Company’s exposure to interest rate risk arises from the interest rate impact on its cash and cash equivalents and debt facilities.
Interest incurred on the vehicle financing and mortgage payable is based upon a variable base rate, being the lending institution’s
prime lending rate, plus a fixed rate margin. Each one percentage point change in interest rates would result in a $16,967 change in
annual interest expense.

Foreign
Currency Exchange Risk

The
Company primarily operates in Canada, Barbados and Botswana and undertakes transactions denominated in foreign currencies such as the
US dollar and Botswana pula, and consequently is exposed to exchange rate risks. The value of cash and other financial assets and liabilities
denominated in foreign currencies can fluctuate with changes in currency exchange rates. Exchange risks are managed by matching levels
of foreign currency balances with the related obligations and by maintaining operating cash accounts in non-Canadian dollar currencies.

The
following table illustrates the estimated impact a 5% USD and BWP change against the CAD would have on net loss before tax as a result
of translating the Company’s foreign denominated financial instruments:

    Currency 
    Change 
    Effect on Net Loss (Earnings) Before Tax $  
    Change  
    Effect on Net Loss (Earnings) Before Tax $ 
  
    USD 
    +5% 
     (89,376) 
     -5% 
     89,376 
  
    BWP 
    +5% 
     86,344  
     -5% 
     (86,344)

Credit
Risk

The
Company’s credit risk is primarily associated with its cash and cash equivalents. The Company’s exposure to credit risk arises
from the potential default of the counterparty to its cash and cash equivalents, and the maximum exposure is limited to the carrying
value of these instruments. The Company limits exposure to credit risk on its cash and cash equivalents by holding these instruments
at highly-rated financial institutions.

Liquidity
Risk

Liquidity
risk is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities that are settled
by delivering cash or another financial asset. The Company manages the liquidity risk inherent in these financial obligations by regularly
monitoring actual cash flows against its budget, which forecasts expected