The world needs more copper (and more copper projects), which means companies and assets that have reached a fairly advanced development stage will be watched closely in the next few quarters and years. Solaris Resources Inc. ( SLSR ) (The Investment Doctor is a financial writer, highlighting European small-caps with a 5-7 year investment horizon. He strongly believes a portfolio should consist of a mixture of dividend and growth stocks. He is the leader of the investment group European Small Cap Ideas whic ...

The world needs more copper (and more copper projects), which means companies and assets that have reached a fairly advanced development stage will be watched closely in the next few quarters and years. Solaris Resources Inc. ( SLSR ) (The Investment Doctor is a financial writer, highlighting European small-caps with a 5-7 year investment horizon. He strongly believes a portfolio should consist of a mixture of dividend and growth stocks. He is the leader of the investment group European Small Cap Ideas whic ...

Solaris Resources (NYSEAM:SLSR) Update / Briefing November 06, 2025 08:00 AM ET Speaker1Good afternoon.Speaker0Good morning, everybody, and thank you very much for joining the call today. I'm Matthew Rowlinson, the CEO and President of Solaris Resources. Today is a very important milestone for the company, and the first time the market has visual of the size, scale, and uniqueness of this multi-generational project. Personally, I would like to thank the team for their efforts. We have an experienced team le ...

Warintza PFS Highlights - PFS confirms Warintza's status as a Tier 1 project[23] - Measured and Indicated Mineral Resources increased by 312% compared to the 2024 MRE[24] - Average annual copper equivalent production is projected to be 304kt for the first 5 years and 242kt for the first 15 years[24] - The project boasts a reserve life of over 20 years with a low LOM strip ratio of 053:1[24] - First quartile AISC is estimated at $085/lb for the first 5 years and $107/lb for the first 15 years[24] - The post-tax NPV8% is $46 billion with a post-tax IRR of 26% and a payback period of 26 years[24] Resource Base and Production Scale - Total Reserves are 5,294 kt of Copper Equivalent[32] - Total Measured and Indicated Resources are 11,820 kt of Copper Equivalent[32] Financials - Average annual EBITDA is projected to be $19 billion for the first 5 years and $14 billion for the first 15 years[24] - Average annual post-tax Free Cash Flow is projected to be $13 billion for the first 5 years and $10 billion for the first 15 years[24]

Summary of Solaris Resources Presentation at Lithium Partners Fall 2025 Investor Conference Company Overview - **Company Name**: Solaris Resources - **Ticker Symbols**: SLSR (NYSE), SLS (TSX) - **Market Capitalization**: Approximately $900 million [9] Industry Context - **Industry**: Copper Mining - **Key Project**: Warintza Project, a significant copper porphyry deposit located in southeastern Ecuador Core Points and Arguments 1. **Project Significance**: Warintza is described as a tier one, global scale, near-term, multi-generational copper project with a resource estimate of 4.3 billion tons, expected to expand in 2025 [3][10] 2. **Economic Viability**: The project has a low strip ratio and is positioned in the first quartile of the cash cost curve, indicating robust economic potential [4][10] 3. **Revenue Diversification**: Approximately 18% of revenues are expected to come from byproduct credits, including molybdenum and gold, enhancing revenue stability [4][30] 4. **Funding and Financial Health**: Solaris has secured a $200 million financing package from Royal Gold, which is non-dilutive and covers all necessary activities until a final investment decision (FID) in late 2026 [5][21] 5. **Social License and Community Engagement**: The company has signed multiple agreements with local communities and received endorsements from various government levels, ensuring a social license to operate [6][18] 6. **Management Team**: The management team has extensive experience in mining and a proven track record, which is crucial for the project's success [7][8] 7. **Strategic Positioning**: The project has no major partners in the equity stack, providing strategic flexibility for future partnerships [5][10] 8. **Infrastructure and Location**: Ecuador is highlighted as a favorable mining jurisdiction with low tax rates, good infrastructure, and supportive government policies [15][16][17] 9. **Permitting Process**: The company is progressing well with the Environmental Impact Assessment (EIA) and anticipates approval by late 2025 [27][28] 10. **Future Catalysts**: Key upcoming milestones include the publication of the Preliminary Feasibility Study (PFS) and updated mineral resource estimates in late 2025, followed by a bankable feasibility study in 2026 [29][30] Additional Important Information - **Investor Protection**: The company benefits from investment protection agreements, including tax and regulatory freezes until 2066 [17] - **Community Support**: Strong rapport with local communities and multiple agreements in place to ensure ongoing support for the project [18] - **Market Position**: Solaris believes it is undervalued relative to its net asset value (NAV) and expects to see value accretion as it meets its development milestones [32] This summary encapsulates the key points from the Solaris Resources presentation, highlighting the company's strategic advantages, project viability, and future growth potential in the copper mining industry.

Group 1 - Solaris Resources Inc. (SLSR) shares have increased by 0.4% over the past four weeks, closing at $5.55, with a mean price target of $10.65 indicating a potential upside of 91.9% [1] - The average price targets range from a low of $8.76 to a high of $13.05, with a standard deviation of $2.18, suggesting a strong agreement among analysts regarding the stock's potential movement [2] - Analysts show strong optimism regarding SLSR's earnings prospects, with a positive trend in earnings estimate revisions correlating with potential stock price increases [4][11] Group 2 - The Zacks Consensus Estimate for SLSR has increased by 14.3% due to one upward revision in earnings estimates over the last 30 days, indicating positive sentiment among analysts [12] - SLSR holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, further supporting its potential upside [13] - While the consensus price target may not be entirely reliable, the direction it implies appears to be a good guide for potential price movement [14]

Core Insights - Solaris Resources Inc. has signed a landmark agreement with the Pueblo Shuar Arutam organization, enhancing its social engagement efforts and supporting the Warintza Project in Ecuador [2][3] - The agreement establishes formal relationships with all Indigenous organizations surrounding the Warintza Project, reinforcing the company's commitment to community-led development [3][4] Social Engagement and Partnerships - The agreement with PSHA, representing nearly 10,000 people organized into 47 Shuar centers, follows a Letter of Intent signed in February 2025 and builds on previous partnerships with local Shuar centers [3][4] - Solaris has also established a trilateral cooperation agreement with the Interprovincial Federation of Shuar Centers and a partnership with the Alliance for Entrepreneurship and Innovation of Ecuador, creating a strong social foundation for the Warintza Project [4] Project Development and De-Risking Initiatives - Solaris is advancing critical de-risking initiatives essential for the Warintza Project's development timeline, including the submission of the Technical Environmental Impact Assessment [5][6] - The final Technical EIA report has been submitted and is currently under government review, following positive engagement with Ecuador's Ministry of Environment and Energy [6][8] - A site visit by government officials in July 2025 marked progress towards the Free, Prior and Informed Consultation process, which is expected to commence in the coming months [7][8] Pre-Feasibility Study and Resource Estimates - The Warintza Pre-Feasibility Study is progressing with positive momentum, incorporating an updated Mineral Resource Estimate that includes resources from Warintza West, expected to be completed in the second half of 2025 [9][10] - Solaris is focused on long-term value creation and aims for a Final Investment Decision, supported by strengthened community partnerships and a reinforced financial position following a recent transaction with Royal Gold [10][11] Exploration Opportunities - Beyond the defined Mineral Resource Estimate, Solaris is pursuing high-impact exploration opportunities within the broader Warintza district, which is considered highly prospective and underexplored [11][12]

Group 1 - Solaris Resources Inc. (NYSEAMERICAN:SLSR) is recognized as one of the best mining stocks to buy according to hedge funds [1] - H.C. Wainwright raised the price target on Solaris Resources' stock to $13 from $11 while maintaining a "Buy" rating [1] - The company secured a $200 million financing agreement with Royal Gold, enhancing its financial flexibility to advance the Warintza project without further shareholder dilution [1] Group 2 - Between January 2024 and February 2025, Solaris Resources completed over 82,000 meters of infill drilling, aiming to upgrade a significant portion of Inferred Resources to Measured and Indicated categories [2] - The cash generated from operating activities for the three and six months ended June 30, 2025, was $84.7 million and $67.1 million, respectively, compared to -$12.1 million and -$22.3 million in the previous periods [2]

Group 1 - Solaris Resources Inc. (SLSR) shares have increased by 7.7% over the past four weeks, closing at $5.34, with a mean price target of $10.73 indicating a potential upside of 100.9% [1] - The mean estimate consists of five short-term price targets with a standard deviation of $2.13, where the lowest estimate of $8.76 suggests a 64% increase, and the highest estimate of $13.05 indicates a 144.4% surge [2] - Analysts show strong agreement in revising earnings estimates higher, which correlates with potential stock price movements, as indicated by a 34.3% increase in the Zacks Consensus Estimate for the current year [9][10] Group 2 - The Zacks Rank for SLSR is 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, suggesting a strong potential upside [11] - While price targets can provide insights, they should be approached with skepticism, as they may not reliably indicate actual stock price movements [8][12] - Analysts often set optimistic price targets influenced by business relationships, which can lead to inflated expectations [6]

[Condensed Consolidated Interim Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Interim%20Financial%20Statements) [Condensed Consolidated Interim Statements of Financial Position](index=2&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Financial%20Position) Solaris Resources Inc.'s financial position as of June 30, 2025, shows a notable increase in total assets and a significant rise in total liabilities, resulting in a larger shareholders' deficit compared to December 31, 2024 Financial Position Summary | Metric | June 30, 2025 ($ thousands) | December 31, 2024 ($ thousands) | Change ($ thousands) | Change (%) | | :----------------------------- | :-------------------------- | :-------------------------- | :------------------- | :--------- | | Total Assets | 73,369 | 57,196 | 16,173 | 28.28% | | Total Liabilities | 102,082 | 66,483 | 35,599 | 53.55% | | Shareholders' Deficit | (28,713) | (9,287) | (19,426) | 209.17% | | Cash and cash equivalents | 47,047 | 31,738 | 15,309 | 48.24% | | Deferred revenue | 90,462 | – | 90,462 | N/A | | Loans and borrowings | – | 49,206 | (49,206) | -100.00% | [Condensed Consolidated Interim Statements of Net Loss and Comprehensive Loss](index=3&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Net%20Loss%20and%20Comprehensive%20Loss) Solaris Resources Inc. reported a net loss of $3,854 thousand for the three months ended June 30, 2025, a significant improvement from the $17,643 thousand loss in the prior year period Net Loss and Comprehensive Loss Summary | Metric | 3 Months Ended June 30, 2025 ($ thousands) | 3 Months Ended June 30, 2024 ($ thousands) | Change ($ thousands) | Change (%) | 6 Months Ended June 30, 2025 ($ thousands) | 6 Months Ended June 30, 2024 ($ thousands) | Change ($ thousands) | Change (%) | | :------------------------------------ | :----------------------------------- | :----------------------------------- | :------------------- | :--------- | :----------------------------------- | :----------------------------------- | :------------------- | :--------- | | Gain on sale of royalty interest | (9,812) | – | (9,812) | N/A | (9,812) | – | (9,812) | N/A | | Exploration expenses | 8,850 | 14,384 | (5,534) | -38.47% | 21,167 | 24,577 | (3,410) | -13.87% | | General and administrative expenses | 5,528 | 2,482 | 3,046 | 122.72% | 8,459 | 4,628 | 3,831 | 82.78% | | Net loss | 3,854 | 17,643 | (13,789) | -78.16% | 19,942 | 30,395 | (10,453) | -34.39% | | Net loss per share (Basic and diluted)| 0.02 | 0.12 | (0.10) | -83.33% | 0.12 | 0.20 | (0.08) | -40.00% | [Condensed Consolidated Interim Statements of Cash Flows](index=4&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Cash%20Flows) Cash and cash equivalents increased significantly for both the three and six months ended June 30, 2025, primarily driven by a substantial positive cash flow from operations, largely due to deferred revenue recognition, which offset negative cash flows from financing activities related to loan repayment Cash Flow Summary | Metric | 3 Months Ended June 30, 2025 ($ thousands) | 3 Months Ended June 30, 2024 ($ thousands) | Change ($ thousands) | Change (%) | 6 Months Ended June 30, 2025 ($ thousands) | 6 Months Ended June 30, 2024 ($ thousands) | Change ($ thousands) | Change (%) | | :------------------------------------ | :----------------------------------- | :----------------------------------- | :------------------- | :--------- | :----------------------------------- | :----------------------------------- | :------------------- | :--------- | | Cash provided by (used in) Operations | 84,713 | (12,150) | 96,863 | 797.23% | 67,455 | (22,378) | 89,833 | 401.43% | | Cash provided by (used in) Financing | (51,915) | 37,536 | (89,451) | -238.31% | (51,672) | 37,489 | (89,161) | -237.85% | | Cash provided by (used in) Investing | (506) | 170 | (676) | -397.65% | (1,016) | 46 | (1,062) | -2308.70% | | Increase (decrease) in cash and cash equivalents | 32,805 | 25,363 | 7,442 | 29.34% | 15,309 | 15,271 | 36 | 0.24% | | Cash and cash equivalents, end of period | 47,047 | 54,136 | (7,089) | -13.10% | 47,047 | 54,136 | (7,089) | -13.10% | [Condensed Consolidated Interim Statements of Changes in Equity](index=6&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Changes%20in%20Equity) The company's total equity shifted from a deficit of $9,286 thousand at December 31, 2024, to a larger deficit of $28,713 thousand by June 30, 2025, primarily due to a net loss and comprehensive loss of $22,213 thousand, partially offset by share issuances Changes in Equity Summary | Metric | December 31, 2024 ($ thousands) | June 30, 2025 ($ thousands) | Change ($ thousands) | Change (%) | | :------------------------------------ | :-------------------------- | :-------------------------- | :------------------- | :--------- | | Total equity | (9,286) | (28,713) | (19,427) | 209.20% | | Common shares (Amount) | 244,718 | 246,578 | 1,860 | 0.76% | | Deficit | (282,582) | (302,489) | (19,907) | 7.04% | | Net loss and comprehensive loss | N/A | (22,213) | (22,213) | N/A | [Notes to the Condensed Consolidated Interim Financial Statements](index=7&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) [1. Nature of Operations and Going Concern](index=7&type=section&id=Note%201%20NATURE%20OF%20OPERATIONS%20AND%20GOING%20CONCERN) Solaris Resources Inc. is an exploration and development company focused on mineral property interests, primarily the Warintza project in Ecuador, operating on a going concern basis but facing material uncertainty due to its reliance on external financing and the absence of operating cash flow from a producing mine - Solaris Resources Inc. is engaged in the acquisition, exploration, and development of mineral property interests, with primary assets including Warintza (Ecuador), La Verde (Mexico), and Tamarugo (Chile) - The company's ability to continue as a going concern is dependent on successful execution of its business plan, meeting Warintza project milestones, and raising additional capital, as it does not generate operating cash flow from a producing mine and has incurred operating losses[10](index=10&type=chunk) - As of June 30, 2025, the company had **$47,047 thousand** in cash and cash equivalents, and secured a funding package with Royal Gold for **$200,000 thousand** on May 21, 2025, with the first tranche of **$100,000 thousand** received at closing[11](index=11&type=chunk)[13](index=13&type=chunk) - Material uncertainty exists regarding the company's ability to continue as a going concern, as additional financing from the second tranche of the Royal Gold funding package is required to fund ongoing operations for the next twelve months[12](index=12&type=chunk) [2. Basis of Preparation](index=8&type=section&id=Note%202%20BASIS%20OF%20PREPARATION) These condensed consolidated interim financial statements are prepared in accordance with IAS 34, Interim Financial Reporting, and should be read in conjunction with the company's most recent annual audited financial statements for the year ended December 31, 2024, with consistent accounting policies, significant judgments, and key sources of estimation uncertainty - The condensed consolidated interim financial statements are prepared in accordance with International Financial Accounting Standard 34 ("IAS 34"), Interim Financial Reporting, and do not include all information required for annual financial statements[14](index=14&type=chunk) - These statements should be read in conjunction with the Company's most recent annual audited financial statements for the year ended December 31, 2024, with consistent accounting policies, significant judgments, and key sources of estimation uncertainty[15](index=15&type=chunk) [3. Material Accounting Policies](index=8&type=section&id=Note%203%20MATERIAL%20ACCOUNTING%20POLICIES) New material accounting policies include the recognition of deferred revenue from streaming agreements and the accounting for the sale of royalty interests - New material accounting policies include deferred revenue related to gold streaming agreements and the sale of royalty interests[17](index=17&type=chunk)[23](index=23&type=chunk) [3.a Deferred Revenue](index=8&type=section&id=3.a%20Deferred%20revenue) - Consideration received from streaming agreements is recognized as deferred revenue and amortized to revenue as the obligation to deliver gold is satisfied over the contract life[17](index=17&type=chunk)[18](index=18&type=chunk) - Contracts with a significant financing component, where consideration is received in advance, are adjusted to reflect financing, with interest expense recognized in the consolidated statements of loss and comprehensive loss[19](index=19&type=chunk)[20](index=20&type=chunk)[21](index=21&type=chunk) [3.b Sale of Royalty Interest](index=8&type=section&id=3.b%20Sale%20of%20royalty%20interest) - Proceeds from the sale of a royalty interest are recorded as a reduction against the Exploration and Evaluation asset, and any excess after the asset value reaches **$0** is recognized as a gain in the statement of net loss[23](index=23&type=chunk) [4. Use of Judgements and Estimates](index=10&type=section&id=Note%204%20USE%20OF%20JUDGEMENTS%20AND%20ESTIMATES) Management applies judgments and estimates in preparing financial statements, particularly in accounting for streaming arrangements, which involve assessing the contract type, significant financing components, and estimating future commodity deliveries, with these estimates subject to variability and potential impact on revenue recognition - Management makes judgments, estimates, and assumptions that affect the application of accounting policies and reported amounts, with actual results potentially differing from estimates[24](index=24&type=chunk) [4.a Accounting for Streaming Arrangements](index=10&type=section&id=4.a%20Accounting%20for%20streaming%20arrangements) - Management determined that the Stream constitutes a contract for the future sale of commodities, settled by delivery, and is recorded as deferred revenue rather than a financial liability[25](index=25&type=chunk) - The contract was assessed to have a significant financing component, requiring estimates of commodity quantity and cash selling price to determine the implicit interest rate, which can impact the timing and amount of revenue recognized[25](index=25&type=chunk) [5. Prepaids and Other](index=10&type=section&id=Note%205%20PREPAIDS%20AND%20OTHER) Prepaid expenses and other current assets decreased slightly from $842 thousand at December 31, 2024, to $784 thousand at June 30, 2025, primarily due to a decrease in prepaid expenses and the elimination of amounts due from a related party Prepaids and Other Summary | Item | June 30, 2025 ($ thousands) | December 31, 2024 ($ thousands) | Change ($ thousands) | Change (%) | | :-------------------------- | :-------------------------- | :-------------------------- | :------------------- | :--------- | | Prepaid expenses and deposits | 494 | 534 | (40) | -7.49% | | Supplies inventory | 120 | 143 | (23) | -16.08% | | Taxes recoverable | 115 | 101 | 14 | 13.86% | | Amounts receivable and other| 55 | 38 | 17 | 44.74% | | Due from a related party | – | 26 | (26) | -100.00% | | Total | 784 | 842 | (58) | -6.89% | [6. Exploration and Evaluation Assets](index=11&type=section&id=Note%206%20EXPLORATION%20AND%20EVALUATION%20ASSETS) The total value of exploration and evaluation assets slightly decreased from $20,179 thousand at December 31, 2024, to $19,991 thousand at June 30, 2025, primarily due to the Warintza property's carrying value being reduced to zero following a royalty sale Exploration and Evaluation Assets Summary | Asset | June 30, 2025 ($ thousands) | December 31, 2024 ($ thousands) | Change ($ thousands) | Change (%) | | :-------------------------- | :-------------------------- | :-------------------------- | :------------------- | :--------- | | La Verde (Mexico) | 19,741 | 19,741 | 0 | 0.00% | | Warintza (Ecuador) | – | 188 | (188) | -100.00% | | ENAMI Concessions (Ecuador) | 250 | 250 | 0 | 0.00% | | Total | 19,991 | 20,179 | (188) | -0.93% | [6.a La Verde](index=11&type=section&id=6.a%20La%20Verde) - The La Verde project in Mexico is **60% owned** by Solaris Resources Inc. and **40%** by a subsidiary of Teck Resources Ltd., with Solaris acting as the operator[28](index=28&type=chunk) - La Verde is subject to a **0.5%** net smelter royalty held by Minera CIMA, S.A. de C.V.[28](index=28&type=chunk) [6.b Warintza](index=11&type=section&id=6.b%20Warintza) - Solaris owns a **100%** interest in the Warintza project in Ecuador, which consists of nine mining concessions covering **26,774 hectares**[29](index=29&type=chunk) - A **0.3%** net smelter return royalty was issued to Royal Gold as part of the Royal Gold Financing Agreements, resulting in a **$188 thousand** reduction to the Warintza property's carrying value and a **$9,812 thousand** gain on the sale of royalty interest[30](index=30&type=chunk) [6.c ENAMI 1 Option](index=11&type=section&id=6.c%20ENAMI%201%20Option) - Solaris holds an option agreement to acquire up to a **100%** interest in **10 new exploration concessions** (approximately **40,000 hectares**) from ENAMI EP, adjacent to the Warintza Project in Ecuador[31](index=31&type=chunk) - To exercise the option, the Company is required to incur **$25,000 thousand** in exploration expenditures and pay an exercise price determined by independent experts for each concession acquired[32](index=32&type=chunk) [6.d Tamarugo](index=12&type=section&id=6.d%20Tamarugo) - Solaris owns a **100%** interest in Tamarugo, a grass-roots copper porphyry target strategically located in northern Chile, covering approximately **7,600 hectares**[33](index=33&type=chunk) [6.e Other Projects](index=12&type=section&id=6.e%20Other%20projects) - Solaris has earn-in agreements on other projects, including the **4,200-hectare** Capricho copper-molybdenum-gold property and the **4,400-hectare** Paco Orco lead, zinc, and silver property in Peru[34](index=34&type=chunk) [7. Reclamation Provision](index=12&type=section&id=Note%207%20RECLAMATION%20PROVISION) The reclamation provision increased from $3,765 thousand at December 31, 2024, to $4,046 thousand at June 30, 2025, reflecting estimated costs for environmental restoration at Warintza, expected to be incurred in 2027, with restricted cash of $571 thousand held to collateralize environmental bonding requirements Reclamation Provision Summary | Item | June 30, 2025 ($ thousands) | December 31, 2024 ($ thousands) | Change ($ thousands) | Change (%) | | :-------------------------- | :-------------------------- | :-------------------------- | :------------------- | :--------- | | Balance, start of period | 3,765 | 1,529 | 2,236 | 146.24% | | Additions | 185 | 2,244 | (2,059) | -91.75% | | Accretion | 31 | 33 | (2) | -6.06% | | Settlement | (1) | (13) | 12 | -92.31% | | Change in estimate | 66 | (28) | 94 | -335.71% | | Balance, end of period | 4,046 | 3,765 | 281 | 7.46% | - Restricted cash of **$571 thousand** is held to collateralize guarantees issued to support environmental bonding requirements with respect to environmental disturbances at Warintza[36](index=36&type=chunk) [8. Property, Plant and Equipment](index=12&type=section&id=Note%208%20PROPERTY%2C%20PLANT%20AND%20EQUIPMENT) The net book value of property, plant and equipment increased from $3,866 thousand at December 31, 2024, to $4,976 thousand at December 31, 2025, primarily driven by significant additions to construction in progress Property, Plant and Equipment Summary | Category | December 31, 2024 ($ thousands) | December 31, 2025 ($ thousands) | Change ($ thousands) | Change (%) | | :-------------------------- | :-------------------------- | :-------------------------- | :------------------- | :--------- | | Site infrastructure and equipment | 1,926 | 1,746 | (180) | -9.35% | | Construction in progress | 1,235 | 2,530 | 1,295 | 104.86% | | Warehouse & office equipment & furniture | 255 | 220 | (35) | -13.73% | | Right-of-use assets | 450 | 480 | 30 | 6.67% | | Total | 3,866 | 4,976 | 1,110 | 28.71% | [9. Warintza Project Financing](index=14&type=section&id=Note%209%20WARINTZA%20PROJECT%20FINANCING) Solaris secured a $200,000 thousand funding package with Royal Gold in May 2025, comprising a gold stream and a net smelter return royalty, which enabled the full repayment of the $60,000 thousand Senior Loan from OMF, significantly restructuring the project's debt - On May 21, 2025, Solaris entered into a **$200,000 thousand** funding package with Royal Gold for the Warintza project, consisting of a Stream and a Royalty[44](index=44&type=chunk) - The Royal Gold funding package provided the necessary capital to repay the **$60,000 thousand** Senior Loan facility from OMF[42](index=42&type=chunk) [9.a Senior Loan – OMF Fund IV SPV D LLC](index=14&type=section&id=9.a%20Senior%20Loan%20%E2%80%93%20OMF%20Fund%20IV%20SPV%20D%20LLC) Senior Loan Summary | Item | June 30, 2025 ($ thousands) | December 31, 2024 ($ thousands) | Change ($ thousands) | Change (%) | | :-------------------------- | :-------------------------- | :-------------------------- | :------------------- | :--------- | | Balance, start of period | 49,206 | 29,363 | 19,843 | 67.58% | | Advances | 15,000 | 15,000 | 0 | 0.00% | | Loan and accrued interest repayment | (67,257) | – | (67,257) | N/A | | Balance, end of period | – | 49,206 | (49,206) | -100.00% | - The Senior Loan was fully repaid by June 30, 2025, with the interest for the three and six months ended June 30, 2025, having been accrued to the principal amount[41](index=41&type=chunk)[42](index=42&type=chunk) - The Senior Loan was measured at amortized cost using an effective interest rate of **16.18%** at June 30, 2025, an increase from **12.80%** at December 31, 2024[41](index=41&type=chunk) [9.b Offtake Agreements](index=14&type=section&id=9.b%20Offtake%20agreements) - Under the terms of the offtake agreements, OMF will purchase the greater of **20%** of the copper and molybdenum concentrates produced from the Warintza project or minimum specified tonnages (**30,000 tonnes** of copper and **1,500 tonnes** of molybdenum) in each contract year[42](index=42&type=chunk) - The offtake agreements will expire **20 years** after the achievement of commercial production, with potential extensions if commercial production is not achieved by December 31, 2027, or December 31, 2032[43](index=43&type=chunk) [9.c Funding Package with Royal Gold](index=15&type=section&id=9.c%20Funding%20package%20with%20Royal%20Gold) - The Royal Gold funding package provides **$200,000 thousand** in three instalments: **$100,000 thousand** upon closing (received), **$50,000 thousand** after Pre-Feasibility Study (PFS) publication and Environmental Impact Assessment (EIA) approval, and **$50,000 thousand** on the first anniversary of closing[45](index=45&type=chunk)[50](index=50&type=chunk) - Under the Stream, Royal Gold will receive gold deliveries equivalent to **20 ounces per 1 million pounds of copper produced**, with a purchase price of **20% of spot price** until **90,000 ounces** have been delivered, and then **60% of spot price** thereafter[45](index=45&type=chunk) - The Royalty grants Royal Gold a **0.3%** net smelter return royalty on all metal production from a defined area, increasing annually by **0.0375%** up to a maximum of **0.6%** until the earlier of the first delivery of gold under the Stream or eight years following the closing date[46](index=46&type=chunk) - The Company's obligations under the Stream and Royalty are secured by various British Columbia and Ecuador-law security agreements and guarantees, including an all-asset general security agreement and share pledges[47](index=47&type=chunk)[48](index=48&type=chunk) [Deferred Revenue (related to Royal Gold Stream)](index=15&type=section&id=Deferred%20revenue%20%28related%20to%20Royal%20Gold%20Stream%29) - The **$100,000 thousand** Stream Upfront Payment received from Royal Gold is recorded as deferred revenue, which includes a significant financing component[49](index=49&type=chunk)[51](index=51&type=chunk) - The deferred revenue balance is accreted by recognizing interest expense at an effective rate of **4.6%**, determined based on the expected deliveries against the deferred revenue[51](index=51&type=chunk) [10. Share Capital](index=16&type=section&id=Note%2010%20SHARE%20CAPITAL) The number of common shares issued and fully paid increased to 165,759,638 by June 30, 2025, with share-based compensation expense for the six months ended June 30, 2025, increasing to $2,080 thousand - The number of issued and fully paid common shares increased to **165,759,638** as of June 30, 2025, from **163,234,932** at December 31, 2024[52](index=52&type=chunk) Share-based Compensation Expense | Period | 2025 ($ thousands) | 2024 ($ thousands) | Change ($ thousands) | Change (%) | | :-------------------------- | :-------------------------- | :-------------------------- | :------------------- | :--------- | | Three months ended June 30 | 1,008 | 665 | 343 | 51.58% | | Six months ended June 30 | 2,080 | 1,494 | 586 | 39.22% | [10.a Common Shares](index=16&type=section&id=10.a%20Common%20shares) - The Company has an unlimited number of authorized common shares with no par value, with **165,759,638 shares** issued and fully paid as of June 30, 2025[52](index=52&type=chunk) [10.b Share Placements](index=16&type=section&id=10.b%20Share%20placements) - On January 15, 2025, the Company issued **83,333 common shares** at a price of **C$4.20**, generating gross proceeds of **$244 thousand** from a private placement[52](index=52&type=chunk) [10.c Share Purchase Options](index=16&type=section&id=10.c%20Share%20purchase%20options) Share Purchase Options Summary | Item | 2025 | 2024 | Change | | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Balance, start of period | 14,165,000 | 10,556,688 | 3,608,312 | | Granted | – | 900,000 | (900,000) | | Exercised | (2,441,373) | (288,107) | (2,153,266) | | Forfeited/expired | (818,627) | (358,581) | (460,046) | | Balance, end of period | 10,905,000 | 10,810,000 | 95,000 | - The weighted average exercise price of options exercised during the six months ended June 30, 2025, was **C$0.80**, while for forfeited options it was **C$5.11**[52](index=52&type=chunk) Outstanding and Exercisable Options | Exercise price (C$) | Number of outstanding options | Weighted average remaining contractual life (years) | Number of exercisable options | Weighted average remaining contractual life (years) | | :-------------------------- | :-------------------------- | :-------------------------------------------------- | :-------------------------- | :-------------------------------------------------- | | 4.61 | 10,905,000 | 2.98 | 4,925,000 | 1.81 | [10.d Restricted Share Units](index=17&type=section&id=10.d%20Restricted%20share%20units) - As of June 30, 2025, there were **260,836 Restricted Share Units (RSUs)** and performance-based RSUs (pRSUs) outstanding, representing **26,085 Solaris shares** issuable[56](index=56&type=chunk) - No RSUs were redeemed under the Company's RSU plan during the six months ended June 30, 2025, or 2024[56](index=56&type=chunk) [11. Exploration Expenditures](index=18&type=section&id=Note%2011%20EXPLORATION%20EXPENDITURES) Total exploration expenditures decreased from $24,577 thousand for the six months ended June 30, 2024, to $21,167 thousand for the same period in 2025, primarily driven by a significant decrease in drilling and drilling-related costs, particularly in Ecuador Exploration Expenditures by Activity | Activity | 3 Months Ended June 30, 2025 ($ thousands) | 3 Months Ended June 30, 2024 ($ thousands) | Change ($ thousands) | Change (%) | 6 Months Ended June 30, 2025 ($ thousands) | 6 Months Ended June 30, 2024 ($ thousands) | Change ($ thousands) | Change (%) | | :------------------------------------ | :----------------------------------- | :----------------------------------- | :------------------- | :--------- | :----------------------------------- | :----------------------------------- | :------------------- | :--------- | | Salaries, studies, geological consultants and support, and travel | 3,419 | 4,203 | (784) | -18.65% | 9,003 | 7,509 | 1,494 | 19.89% | | Site preparation, supplies, field and general | 2,203 | 3,353 | (1,150) | -34.29% | 4,567 | 5,641 | (1,074) | -19.04% | | Drilling and drilling related costs | 69 | 3,697 | (3,628) | -98.13% | 1,041 | 5,198 | (4,157) | -79.98% | | Community relations, environmental and permitting | 2,652 | 1,814 | 838 | 46.20% | 4,824 | 3,748 | 1,076 | 28.71% | | Total | 8,850 | 14,384 | (5,534) | -38.47% | 21,167 | 24,577 | (3,410) | -13.87% | Exploration Expenditures by Jurisdiction | Jurisdiction | 2025 ($ thousands) | 2024 ($ thousands) | Change ($ thousands) | Change (%) | | :-------------------------- | :-------------------------- | :-------------------------- | :------------------- | :--------- | | Ecuador | 17,974 | 23,728 | (5,754) | -24.25% | | Peru and other | 3,061 | 717 | 2,344 | 326.92% | | Total | 21,167 | 24,577 | (3,410) | -13.87% | [12. General and Administrative Expenditures](index=19&type=section&id=Note%2012%20GENERAL%20AND%20ADMINISTRATIVE%20EXPENDITURES) General and administrative expenditures significantly increased for both the three and six months ended June 30, 2025, primarily driven by a substantial increase in professional fees and share-based compensation General and Administrative Expenditures Summary | Item | 3 Months Ended June 30, 2025 ($ thousands) | 3 Months Ended June 30, 2024 ($ thousands) | Change ($ thousands) | Change (%) | 6 Months Ended June 30, 2025 ($ thousands) | 6 Months Ended June 30, 2024 ($ thousands) | Change ($ thousands) | Change (%) | | :-------------------------- | :----------------------------------- | :----------------------------------- | :------------------- | :--------- | :----------------------------------- | :----------------------------------- | :------------------- | :--------- | | Share-based compensation | 1,009 | 665 | 344 | 51.73% | 2,079 | 1,494 | 585 | 39.16% | | Professional fees | 3,708 | 834 | 2,874 | 344.60% | 4,014 | 1,191 | 2,823 | 237.03% | | Total | 5,528 | 2,482 | 3,046 | 122.72% | 8,459 | 4,628 | 3,831 | 82.78% | [13. Segmented Information](index=19&type=section&id=Note%2013%20SEGMENTED%20INFORMATION) The company operates as a single operating segment, focused on the exploration of mineral properties, with its non-current assets primarily located in Mexico ($19,749 thousand) and Ecuador ($5,728 thousand) as of June 30, 2025 - The Company has one operating segment: the exploration of mineral properties[61](index=61&type=chunk) Non-Current Assets by Jurisdiction | Jurisdiction | June 30, 2025 ($ thousands) | December 31, 2024 ($ thousands) | Change ($ thousands) | Change (%) | | :-------------------------- | :-------------------------- | :-------------------------- | :------------------- | :--------- | | Mexico | 19,749 | 19,750 | (1) | -0.01% | | Ecuador | 5,728 | 4,774 | 954 | 19.98% | | Chile | 7 | 7 | 0 | 0.00% | | Peru | 54 | 79 | (25) | -31.65% | | Canada | – | 6 | (6) | -100.00% | | Total | 25,538 | 24,616 | 922 | 3.75% | [14. Financial Instrument Risk Exposure and Risk Management](index=19&type=section&id=Note%2014%20FINANCIAL%20INSTRUMENT%20RISK%20EXPOSURE%20AND%20RISK%20MANAGEMENT) The company is exposed to various financial instrument risks, including credit risk, liquidity risk, and foreign currency risk, with the Board of Directors responsible for approving and monitoring the risk management process - The Company is exposed to various financial instrument related risks, including credit risk, liquidity risk, and foreign currency risk, with the Board of Directors approving and monitoring the risk management process[62](index=62&type=chunk) [14.a Credit Risk](index=19&type=section&id=14.a%20Credit%20risk) - Credit risk primarily arises from the Company's cash and cash equivalents and amounts receivable, limited by maintaining cash with high-credit quality financial institutions[63](index=63&type=chunk) - The maximum exposure to credit risk as of June 30, 2025, is **$47,788 thousand**, representing the carrying value of these financial assets[63](index=63&type=chunk) [14.b Liquidity Risk](index=20&type=section&id=14.b%20Liquidity%20risk) - The Company manages liquidity risk by ensuring there is sufficient capital to meet short-term business requirements, taking into account its holdings of cash[65](index=65&type=chunk) Contractual Maturities of Financial Liabilities | Item | < 1 Year ($ thousands) | 1-3 Years ($ thousands) | 4-5 Years ($ thousands) | > 5 Years ($ thousands) | Total ($ thousands) | | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Accounts payable and accrued liabilities | 6,833 | – | – | – | 6,833 | | Lease liabilities | 111 | 382 | – | – | 493 | | Other long-term liabilities | – | – | – | 248 | 248 | | Exploration expenses and other | 920 | 1,058 | – | – | 1,978 | | Total | 7,864 | 1,440 | – | 248 | 9,552 | [14.c Foreign Currency Risk](index=20&type=section&id=14.c%20Foreign%20currency%20risk) - The Company is exposed to currency risk on transactions and balances in currencies other than its functional currency, the Canadian dollar, particularly from US dollar denominated assets and liabilities[67](index=67&type=chunk)[68](index=68&type=chunk) - For the six months ended June 30, 2025, a **5%** change in the US dollar to Canadian dollar currency exchange rate would result in a **$1,562 thousand** impact on the Company's net gain[68](index=68&type=chunk) [15. Fair Value Measurements](index=20&type=section&id=Note%2015%20FAIR%20VALUE%20MEASUREMENTS) The carrying values of cash and cash equivalents, amounts receivable, due from related parties, restricted cash, and accounts payable and accrued liabilities approximate their fair value due to their short terms to maturity, with no transfers between fair value levels in the periods presented - The carrying values of short-term financial assets and liabilities, including cash and cash equivalents, amounts receivable, restricted cash, and accounts payable, approximate their fair value due to their short terms to maturity[70](index=70&type=chunk) - There were no transfers between fair value levels in the periods presented[70](index=70&type=chunk) [16. Related Party Transactions](index=21&type=section&id=Note%2016%20RELATED%20PARTY%20TRANSACTIONS) Related party transactions include compensation for key management personnel and a terminated arrangement for shared administrative services, with key management compensation decreasing for the six months ended June 30, 2025, and charges from the shared services arrangement ceasing after its termination on January 1, 2025 - Related party transactions include compensation for key management personnel and charges from a shared administrative services arrangement, which was terminated on January 1, 2025[72](index=72&type=chunk)[74](index=74&type=chunk) [Compensation of Key Management Personnel](index=21&type=section&id=Compensation%20of%20key%20management%20personnel) Key Management Personnel Compensation Summary | Item | 3 Months Ended June 30, 2025 ($ thousands) | 3 Months Ended June 30, 2024 ($ thousands) | Change ($ thousands) | Change (%) | 6 Months Ended June 30, 2025 ($ thousands) | 6 Months Ended June 30, 2024 ($ thousands) | Change ($ thousands) | Change (%) | | :-------------------------- | :----------------------------------- | :----------------------------------- | :------------------- | :--------- | :----------------------------------- | :----------------------------------- | :------------------- | :--------- | | Share-based compensation | 458 | 522 | (64) | -12.26% | 941 | 1,177 | (236) | -20.05% | | Salaries and benefits | 329 | 273 | 56 | 20.51% | 642 | 496 | 146 | 29.44% | | Professional fees | – | 91 | (91) | -100.00% | – | 132 | (132) | -100.00% | | Total | 787 | 886 | (99) | -11.17% | 1,583 | 1,805 | (222) | -12.30% | [Related Party Arrangement](index=21&type=section&id=Related%20party%20arrangement) - The arrangement to share office space, equipment, personnel, and administrative services with other companies related by virtue of common directors and management was terminated on January 1, 2025[74](index=74&type=chunk) Related Party Arrangement Charges | Item | 3 Months Ended June 30, 2025 ($ thousands) | 3 Months Ended June 30, 2024 ($ thousands) | Change ($ thousands) | Change (%) | 6 Months Ended June 30, 2025 ($ thousands) | 6 Months Ended June 30, 2024 ($ thousands) | Change ($ thousands) | Change (%) | | :-------------------------- | :----------------------------------- | :----------------------------------- | :------------------- | :--------- | :----------------------------------- | :----------------------------------- | :------------------- | :--------- | | Salaries and benefits | – | 960 | (960) | -100.00% | – | 1,327 | (1,327) | -100.00% | | Office and other | – | 119 | (119) | -100.00% | 104 | 235 | (131) | -55.74% | | Total | – | 1,136 | (1,136) | -100.00% | 104 | 1,624 | (1,520) | -93.59% | [17. Supplemental Cash Flow Information](index=21&type=section&id=Note%2017%20SUPPLEMENTAL%20CASH%20FLOW%20INFORMATION) Non-cash items for the six months ended June 30, 2025, included $126 thousand for right-of-use assets acquired, and accrued interest expense of $2,367 thousand was paid on May 21, 2025, concurrently with the repayment of the senior loan facility Supplemental Cash Flow Information Summary | Item | 2025 ($ thousands) | 2024 ($ thousands) | Change ($ thousands) | Change (%) | | :-------------------------- | :-------------------------- | :-------------------------- | :------------------- | :--------- | | Accrued share issuance and finance costs | – | 182 | (182) | -100.00% | | Accrued interest income | – | 25 | (25) | -100.00% | | Interest expense accrued to loans and borrowings | – | 2,024 | (2,024) | -100.00% | | Right of use asset acquired | 126 | 248 | (122) | -49.19% | - Accrued interest expense of **$2,367 thousand** was paid on May 21, 2025, along with the repayment of the senior loan facility[77](index=77&type=chunk)