Company: PRMLF
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022391
Chunk: 158

Company: NexMetals Mining Corp.
Filing Date: 2025-11-13
Form: 10-Q
Item: Item 8
Chunk 158
---

period.

Vehicle
financing and mortgage payable - the fair values approximate carrying values as the interest rates are comparable to current market rates.

Term
Loan – the Term Loan is carried at amortized cost. The fair value measurement of the Term Loan was based on an income approach.

43

NSR
option liability – The fair value of the NSR options is determined using a valuation model that incorporates such factors as
discounted cash flow projections, metal price volatility, and risk-free interest rate. As the NSR options are exercisable entirely
at the discretion of Cymbria and the underlying projects are in the exploration stage, the fair value of the call and put on the
options as 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