Long-term Debt |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||
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Jul. 31, 2026 | |||||||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||
| Long-term Debt | 10. Long-term Debt
On October 19, 2020, Sweetwater issued $688.8 million of 5.32% senior secured notes which mature on September 30, 2040 (the "Royalties Notes") pursuant to the Note Purchase Agreement between Sweetwater and each of the noteholders dated August 19, 2020 ("Royalties Notes Agreement"). Principal and interest payments are due semi-annually on March 31 and September 30 of each year. The principal payment amounts vary and escalate over the term of the Royalties Notes Agreement. The Company assumed the liability of the Royalties Notes upon the closing of the acquisition of Sweetwater. On the Acquisition Date, the fair value of the Royalties Notes was $552,758, including current portion of $17,097 and non-current portion of $535,661 (Note 3). The effective interest rate of the Royalties Notes is 7.70% per annum. During the three months ended July 31, 2026, the Company recorded $452 of interest expense on the Royalties Notes. As at July 31, 2026, the future contractual principal repayments on long-term debt, measured from the interim reporting date, are as follows:
The Royalties Notes are secured by substantially all of the mineral properties acquired from Sweetwater and the related income generated by those properties. As of July 31, 2026, the carrying amount of the mineral properties pledged as collateral for the Royalties Notes was $1,300,098, which excludes $281 of mineral properties not pledged as collateral. Sweetwater is currently in compliance with all financial and general covenants required by the Royalties Notes Agreement. |
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