The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value. The Company does not have any non-recurring fair value measurements as at December 31, 2025. Levels 1 to 3 of the fair value hierarchy are defined based on the degree to which fair value inputs are observable or unobservable, as follows:


	December 31, 2025		December 31, 2024
	Level 1	Level 2		Level 1	Level 2
Financial assets (liabilities)
Fair value through profit or loss

Gold forwards acquired from Argonaut not designated as hedging instruments 1,2	—	(257.0)		—	(140.0)

Fair value through OCI
Equity securities	58.9	—		24.0	—
Currency derivatives designated as hedging instruments1,3	—	2.0		—	(9.0)
Fuel derivatives designated as hedging instruments1	—	(0.1)		—	(0.1)
	$58.9	($255.1)		$24.0	($149.1)

2 The current portion of the Argonaut gold forwards as at December 31, 2025 is $128.0 million with the remaining balance recognized as long-term on the consolidated statements of financial position (December 31, 2024 - $nil current portion).

3On a gross basis, total derivatives recognized as at December 31, 2025 consist of total assets of $2.0 million (December 31, 2024- $nil) included in other current assets and total liabilities of $257.1 million (December 31, 2024 - $149.1 million) included in current and non-current derivative liabilities on the consolidated statements of financial position.

The fair value of option and forward contracts are determined using a market approach with reference to observable market prices for identical assets traded in an active market. These are classified within Level 2 of the fair value hierarchy. The use of reasonably possible alternative assumptions would not significantly affect the Company’s results.

The Company enters into option and forward contracts to hedge against the risk of an increase in the value of the Canadian dollar and Mexican peso versus the US dollar. These option and forward contracts are for the purchase of local currencies and the sale of US dollars, which settle on a monthly basis, and the Company believes this is an appropriate manner of managing currency risk. The Company has designated options and forwards as cash flow hedges for the highly probable Canadian dollar and Mexican peso.

The Company also enters into option contracts to hedge against the risk of an increase in the price of diesel fuel. These option contracts are for the purchase of New York Harbour Ultra Low Sulfur Diesel ("ULSD") contracts, which settle on a monthly basis, and the Company believes this is an appropriate manner of managing price risk. The Company has designated these options as cash flow hedges for the highly probable consumption of diesel.

These currency option and forward and fuel option derivatives meet the hedge effectiveness criteria and are designated in a hedge accounting relationship as a result of the following factors:

•An economic relationship exists between the hedged items and hedging instrument, as notional amounts match and both the hedged item and hedging instrument fair values move in response to the same risk (foreign exchange risk and diesel price risk). Cash flows in relation to the designated hedged item and hedging instrument are matched since the option and forward contracts (hedging instrument) matures during the same month as the operational cash flows (hedged item) are expected to be incurred.

•The hedge ratio is one to one for this hedging relationship, as the hedged item is foreign currency risk and diesel price risk that is hedged with a foreign currency or diesel fuel hedging instrument using one unit of both the hedged and hedging item respectively.

The Company has identified two sources of potential ineffectiveness: 1) the timing of cash flow differences between the expenditure and the related derivative and 2) the inclusion of credit risk in the fair value of the derivative not replicated in the hedged item. The Company expects the impact of these sources of hedge ineffectiveness to be minimal. The timing of hedge settlements and incurred expenditures are closely aligned, as they are expected to occur within 30 days of each other. As noted above, credit risk is not a material component of the fair value of the Company’s hedging instruments, as all counterparties are reputable Canadian banking institutions and are highly rated.

The effective portion of the changes in fair value of the currency option and forward contracts for the years ended December 31, 2025 and 2024 recorded in accumulated other comprehensive loss is:



	December 31, 2025	December 31, 2024
Balance, beginning of the period	($5.3)	$6.4
Change in value on currency instruments	12.1	(15.5)
Add: realized loss on CAD currency instruments	2.2	0.8
Less: realized gain on MXN currency instruments	(3.4)	(0.9)
Deferred income tax related to hedging instrument	(2.7)	3.9
	$2.9	($5.3)

The effective portion of the changes in fair value of the fuel option contracts for the years ended December 31, 2025 and 2024 recorded in accumulated other comprehensive loss is:


	December 31, 2025	December 31, 2024

Balance, beginning of the period	($0.2)	($0.1)
Change in value on fuel contracts	—	(0.1)
Add: realized loss on fuel contracts	—	0.1
Deferred income tax related to fuel contracts	—	(0.1)
	($0.2)	($0.2)

As at December 31, 2025, the Company held contracts to protect against the risk of an increase in the price of fuel. These collars totalling 1,638,000 gallons, ensure a minimum purchase call option of $2.12 per gallon and a maximum average sold put options of $2.32 per gallon, regardless of the movement in fuel prices during 2026. The fair value of these contracts at December 31, 2025 was a liability of $0.1 million (December 31, 2024 - liability of $0.1 million.)

As at December 31, 2025, the Company held forward contracts that were acquired as part of the acquisition of Argonaut. These contracts, totaling 50,000 ounces in 2026 and 50,000 ounces in 2027, have an average forward price of $1,821 per ounce. These forward contracts mature monthly in the second half of 2026 and the first half of 2027. In December 2025, the Company settled 50,000 ounces of the Argonaut legacy hedges, representing the expected delivery in the first half of 2026, for a cash payment of $113.5 million resulting in a realized loss of $113.5 million for the year ended December 31, 2025. The fair value of the remaining 2026-2027 contracts was a liability of $257.0 million at December 31, 2025 (December 31, 2024 - $140.0 million).

For the year ended December 31, 2025, the Company recorded unrealized losses of $117.0 million (for the year ended December 31, 2024 - unrealized losses of $24.2 million). The unrealized loss recognized in the year ended December 31, 2025 is fully attributable to the Argonaut legacy hedges. The Company does not apply hedge accounting to these forward contracts, with changes in fair value recorded in net earnings.

In the normal course of operations, the Company is exposed to credit risk, liquidity risk and the following market risks: commodity price, market price, interest rate and foreign currency exchange rate. The Company has developed a risk management process to identify, analyze and assess these and other risks, and has formed a Risk Committee to monitor all significant risks to the Company. The Board of Directors has overall responsibility for the oversight of the Company’s risk management framework, and receives regular reports from the Risk Committee.

The profitability of the Company’s mining operations is significantly affected by changes in the market price for gold. Gold prices fluctuate on a daily basis and are affected by numerous factors beyond the Company’s control. The supply and demand for gold, the level of interest rates, the rate of inflation, investment decisions by large holders of gold, including governmental reserves, and the stability of exchange rates can all cause significant fluctuations in gold prices. Such external economic factors are in turn influenced by changes in international investment patterns and monetary systems, and political developments. From time to time, the Company will enter into collars, options or other financial instruments to manage short term commodity price fluctuations.

For the year ended December 31, 2025, the Company’s revenues and cash flows were positively impacted by gold prices fluctuating from a low of $2,614 to a high of $4,550 per ounce. Subsequent metal price declines could cause the continued development of, and production from, the Company’s properties to be uneconomic.

As at December 31, 2025, the Company's commodity price risk associated with financial instruments primarily relates to changes in fair value caused by gold price on the legacy Argonaut gold forward contracts. If gold prices fluctuated by 10% from the December 31, 2025 price of $4,319 per ounce, with other variables held constant, the Company's earnings before taxes would increase or decrease by $43.2 million (December 31, 2024 - $39.4 million) due to the change in fair value of the legacy Argonaut gold forward contracts.

Interest rate risk is the risk that the fair value or the future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company has exposure to interest rate risk on the interest receipts on the cash and cash equivalents and the interest payments on the revolving credit facility ("Facility") (Note 15). The interest incurred on the Facility is based on Adjusted Term SOFR Rates, which may fluctuate. A 100 basis point change in the interest rate would result in an increase or decrease of approximately $2.5 million (December 31, 2024 - $1.5 million) in the Company's earnings before taxes. The Company has not entered into any derivative contracts to manage this risk.

Metal sales revenues for the Company are denominated in US dollars. The Company is exposed to currency fluctuations relative to the US dollar on expenditures that are denominated in Canadian dollars and Mexican pesos. These potential currency fluctuations could have a significant impact on production costs and thereby, the profitability of the Company. The Company is also exposed to the impact of currency fluctuations on its monetary assets and liabilities.

A 10% strengthening or deterioration of these currencies against the US dollar at each balance sheet date would have resulted in a gain or loss recorded in net earnings by the amounts shown below. This analysis assumes that other variables, in particular interest rates, remain constant.

The currencies of the Company's financial instruments and other foreign currency denominated assets and liabilities based on notional amounts, denominated in U.S dollar equivalents were as follows:


	Canadian Dollars		Mexican Peso
	December 31, 2025	December 31, 2024	December 31, 2025	December 31, 2024

Cash and cash equivalents	$24.7	$18.9	$2.0	$11.8
Equity securities	58.9	24.0	—	—
Amounts receivable	31.4	35.9	13.4	10.1
Other monetary net liabilities	(3.9)	(66.8)	(12.4)	(6.6)
Accounts payable and accrued liabilities	(204.9)	(153.6)	(24.2)	(17.7)
Income taxes payable	(19.2)	(3.2)	(34.4)	(45.6)
Total exposure to currency risk	(113.0)	(144.8)	(55.6)	(48.0)

Credit risk relates to receivables and other contracts, and arises from the possibility that any counterparty to an instrument fails to perform. For cash and cash equivalents, and receivables, the Company’s credit risk is limited to the carrying amount on the balance sheet. The Company manages credit risk by transacting with highly-rated counterparties and establishing a limit on contingent exposure for each counterparty based on the counterparty’s credit rating. Exposure on receivables is limited as the Company sells its products to a small number of organizations, on which the historical level of defaults is minimal. For the deferred payment consideration, a limit on contingent exposure has been established for the counterparty based on the issuance of a bank guarantee from international financial institutions with investment grade credit ratings.


	December 31, 2025	December 31, 2024
Cash and cash equivalents	$623.1	$327.2
Deferred payment consideration	299.1	—
Derivative assets	2.0	—
Other receivables	5.4	4.2
Total financial instrument exposure to credit risk	$929.6	$331.4

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’s strategy is based on achieving positive cash flow from operations to internally fund operating, capital and project development requirements, generate returns for its shareholders, and bolster the balance sheet. Material increases or decreases in the Company’s liquidity and capital resources will be substantially determined by the success or failure of the Company’s operations, exploration, and development programs, the ability to obtain equity or other sources of financing, the price of gold, and currency exchange rates.

The Company's liquidity position, comprised of cash and cash equivalents and availability under the Facility, together with cash flows from operating activities, is sufficient to support the Company's normal operating requirements, capital commitments and service debt obligations.

The following table shows the maturities of contractual and other commitments. The amount presented represents the future undiscounted principal and interest cash flows, therefore do not equate to the carrying amounts on the consolidated statements of financial position.


	Less than 1 year	2 - 3 years	4 - 5 years	More than 5 years	Total
Leases	14.4	15.0	3.8	8.6	41.8
Debt	—	—	200.0	—	200.0
Accounts payable and accrued liabilities	316.1	—	—	—	316.1
Decommissioning liabilities	8.1	48.5	44.4	106.5	207.5
Capital commitments	233.3	13.8	3.4	10.3	260.8
	$571.9	$77.3	$251.6	$125.4	$1,026.2