v3.25.2
Lease liabilities
 9 Months Ended
May 31, 2025
Lease Liabilities  
Lease liabilities

 

10.Lease liabilities

 

Lease liabilities are measured at the discounted value of future lease payments using the lease-specific incremental borrowing rate. Lease payments are apportioned between interest expense and the reduction of the liability. Interest expense is based on the lease-specific incremental borrowing rate at the commencement date of the lease. The incremental borrowing rate differs between each category of asset, location of asset and the duration of the lease. The Company’s lease liabilities are primarily comprised of leases for 16 pieces of equipment for use in Buckreef’s mining operations.

 

The carrying amounts of lease liabilities and movements during the period were:

 

     
     Amount 
As at August 31, 2024  $1,343 
Additions   2,344 
Accretion of lease liabilities (Note 22)   256 
Lease payments   (867)
Foreign exchange   (1)
As at May 31, 2025  $3,075 

 

          
     May 31, 2025     August 31, 2024 
Current portion of lease liabilities  $1,169   $401 
Lease liabilities   1,906    942 
Balance at end of period  $3,075   $1,343 

 

The following amounts are recognized in the statement of income (loss) and comprehensive (loss) income:

 

                    
  

 

Three months ended

May 31,

  

 

Nine months ended

May 31,

 
   2025   2024   2025   2024 
Depreciation expense for right-of-use assets (Note 7)  $228   $16   $614   $43 
Accretion of lease liabilities (Note 22)   98    1    256    3 
Total amount  $326   $17   $870   $46 

 

As at May 31, 2025, the Company had the following lease commitments:

 

     
     Amount 
Not later than one month  $123 
Later than one month and not later than three months   246 
Later than three months and not later than one year   1,131 
Later than one year and not later than five years   2,058 
Total undiscounted lease commitments  $3,558 

 

As at May 31, 2025, the carrying value of right-of-use assets amounted to $4.4 million (August 31, 2024 - $1.7 million). Mobile equipment under lease contracts are depreciated over their useful lives as the purchase prices at the end of the lease terms are immaterial.