Fair Values of Financial Instruments |
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| Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Values of Financial Instruments | 13. FAIR VALUES OF FINANCIAL INSTRUMENTS Fair value measurement (a) Financial instruments not measured at fair value Except as disclosed below, the carrying value of the financial assets and liabilities where the measurement basis is other than fair value approximate their fair values due to the immediate or short-term nature of these instruments considering there have been no significant changes in credit and market interest rates since the original date. Cash and cash equivalents, receivables, accounts payable and royalty obligations, Notes and PPA are measured at amortized cost. (b) Measurement of fair value The fair value hierarchy requires the use of observable market inputs whenever such inputs exist. A financial instrument is classified in the lowest level of the hierarchy for which a significant input has been considered in measuring fair value. The fair value hierarchy establishes three levels to classify the significance of inputs to valuation techniques used in making fair value measurements of all financial assets and liabilities. At June 30, 2025 and December 31, 2024, there were no financial assets and financial liabilities measured and recognized at fair value on a non-recurring basis subsequent to initial recognition. The following table identifies the Company’s financial assets and financial liabilities measured at fair value on a recurring basis by level within the fair value hierarchy. The carrying value is equal to the fair value at each date reported.
1 A loss on change in fair value of $151 (2024 - $573) and a loss on change in fair value of $372 (2024 - $1,897) was recognized in the condensed consolidated interim statements of loss for the three and six-month periods ended June 30, 2025, respectively. 2 As Ascend Elements is a private company, there is no observable market data to use, which results in this equity investment being classified as without readily determinable fair value. The fair value was based on a review of Ascend Elements’ business development, financings and trends in the share prices of other companies in the same industry sector. A loss on change in fair value of $94 (2024 - $2,575) and a loss on change in fair value of $1,829 (2024 - $2,575), respectively, was recognized in the condensed consolidated interim statements of loss for the three and six-month periods ended June 30, 2025. 3 The fair value of the conversion derivative was determined using a Partial Differential Equation method with the following inputs and assumptions at June 30, 2025: expected volatility of 30.7%, share price of $2.68, risk-free rate of 3.8%, and no expected dividends. The fair value at inception at April 1, 2025 was determined using the following inputs: expected volatility of 35.2%, share price of $2.76, risk-free rate of 3.9%, and no expected dividends. During the three months ended June 30, 2025, a gain on change in fair value of $6,762 was recognized in the condensed consolidated interim statements of loss. The Company has, where appropriate, estimated the fair value of financial instruments for which the amortized cost carrying value may be significantly different than the fair value. As of June 30, 2025 and December 31, 2024, this includes the following:
1 The estimated fair value involved Level 3 inputs and was determined using a discounted cash flow with a discount rate of 25.8% at June 30, 2025 (December 31, 2024 - 12.3%). 2 The estimated fair value involved Level 3 inputs and was determined using a discounted cash flow with the following inputs and assumptions: average lithium production of 41,500 tonnes per year, average lithium price of $15,082 and discount rate of 27.9%. 3 The estimated fair value involved Level 3 inputs and was determined using a discount rate of 25.8%. During the three months ended June 30, 2024, a gain on change in fair value of $168 associated with a previous fair-valued liability was recognized in the condensed consolidated interim statements of loss. During the six months ended June 30, 2024, a loss on change in fair value of $12 was recognized. This liability was derecognized on October 15, 2024. |
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