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Secured Note Liability (Tables)
 9 Months Ended
Sep. 30, 2022
Secured Note Liability [Abstract]  
Schedule of inputs and assumptions
Inputs and Assumption   March 24,
2022		    September 30,
2022		 
Weighted Average Life 1   23.5 years    44.7 years 
Risk-free rate   2.5%   3.2%
Credit spread   5.2%   6.4%
Volatility   60%   60%
Silver royalty discount factor   7.1%   8.6%

 

1)Weighted average life reflects the revised silver forecast production schedule contained in the recently filed KSM updated Preliminary Feasibility Study (PFS) and Preliminary Economic Assessment (PEA) for the KSM project.

 
Schedule of carrying amount for the secured note
($000s)  Secured Note 
Fair value at inception   282,263 
Add (deduct):     
Unrealized change in fair value   (82,337)
Foreign currency translation loss   20,734 
Carrying value and fair value on September 30, 2022   220,660 

 
Schedule of inputs and assumptions
Key Inputs  Inter-relationship between significant inputs and fair value measurement 

Increase (decrease)

(millions)

 
Key observable inputs  The estimated fair value would increase (decrease) if:     
●    Silver price forward curve  ●    Future silver prices were 10% higher  $15.0 
  ●    Future silver prices were 10% lower  $(8.8)
●    Discount rates (7.9% - 9.2%)  ●    Discount rates were 1% higher  $(17.0)
  ●    Discount rates were 1% lower  $19.6 
Key unobservable inputs        
●    Forecasted silver production  ●    Silver production indicated silver ounces were 10% higher  $7.9 
   ●    Silver production indicated silver ounces were 10% lower  $(7.4)