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Secured Note Liability (Tables)

12 Months Ended

Dec. 31, 2022

Disclosure Of Borrowings Text Block Abstract

Schedule of inputs and assumptions

Inputs and assumptions		March 24, 2022		December 31, 2022
Weighted Average Life ¹		23.5 years		44.9 years
Forecast silver production in thousands of ounces		105,778		166,144
Future silver price		US$ 28.96 to US$35.42		US$ 29.38 to US$110.51
Risk-free rate		2.5%		3.4%
Credit spread		5.2%		5.3%
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 filed in the second quarter of 2022

Schedule of carrying amount for the secured note

($000s)			Secured Note
Fair value at inception			282,263
Add (deduct):
Unrealized change in fair value			(39,879)
Foreign currency translation loss			21,157
Carrying value and fair value on December 31, 2022			263,541

Schedule of fair value of the secured note

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		$	9.7
		● Future silver prices were 10% lower		$	(9.8	)
● Discount rates (7.6% - 9.6%)		● Discount rates were 1% higher		$	(16.1	)
		● Discount rates were 1% lower		$	18.7
Key unobservable inputs
● Forecasted silver production		● Silver production indicated silver ounces were 10% higher		$	9.7
		● Silver production indicated silver ounces were 10% lower		$	(9.8	)