Financial Instruments

6 Months Ended

Jun. 30, 2026

5.	Financial Instruments

There have been no significant changes to the Company’s financial instruments and related risks since December 31, 2025. Refer to Note 5 to the audited consolidated financial statements for the year ended December 31, 2025 for more information.

5.1.	Fair Value Estimation

The Company classifies its fair value measurements within a fair value hierarchy, which reflects the significance of the inputs used in making the measurements as defined in IFRS 13 – Fair Value Measurements (“IFRS 13”).

Level 1 - Unadjusted quoted prices at the measurement date for identical assets or liabilities in active markets.

Level 2 - Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3 - Unobservable inputs which are supported by little or

market activity.

The following table sets forth the Company’s financial assets and liabilities measured at fair value by level within the fair value hierarchy. As required by IFRS 13, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.



		June 30, 2026

(in thousands)	Note		Total		Level 1		Level 2		Level 3

Cash and cash equivalents	21	$	100,192	$	100,192	$	-	$	-

Trade receivables from provisional concentrate sales, net of fair value adjustment	11		17,867		-		17,867		-

Long-term investments - common shares held	15		144,789		144,789		-		-

Long-term investments - warrants held	15		2,830		-		2,830		-
		$	265,678	$	244,981	$	20,697	$	-



			December 31, 2025

(in thousands)	Note		Total		Level 1		Level 2		Level 3

Cash and cash equivalents		21	$	1,153,593	$	1,153,593	$	-	$	-

Trade receivables from provisional concentrate sales, net of fair value adjustment		11		41,545		-		41,545		-

Long-term investments - common shares held		15		407,230		407,230		-		-

Long-term investments -warrants held		15		3,265		-		3,265		-

			$	1,605,633	$	1,560,823	$	44,810	$	-

The Company’s bank debt (Notes 16.1 and 16.2) is reported at amortized cost using the effective interest method. The carrying value of the bank debt approximates its fair value.

5.1. Valuation Techniques for Level 2 Assets

Accounts Receivable Arising from Sales of Metal Concentrates

The Company’s trade receivables from provisional concentrate sales are valued based on forward price of silver to the expected date of final settlement (Note 6). As such, these receivables and/or liabilities are classified within Level 2 of the fair value hierarchy.

Long-Term Investments in Warrants Held

The fair value of the Company’s long-term investments in warrants held that are not traded in an active market are determined using a Black-Scholes model based on assumptions including risk-free interest rate, expected dividend yield, expected volatility and expected warrant life which are supported by observable current market conditions and as such 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.