[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)

Core Viewpoint - Royal Gold, Inc. has entered into a $200 million deal with Solaris Resources for the Warintza Project, which is expected to provide significant long-term production potential in Ecuador [1][4]. Group 1: Strategic Acquisition Details - The Warintza Project is a copper-molybdenum-gold porphyry development project with Measured and Indicated Resources of 1.082 billion tons at a copper equivalent grade of 0.48%, and Inferred Resources of 3.135 billion tons [2]. - Early works for the project are targeted to begin in the second half of 2026, with production anticipated by 2030 [3]. Group 2: Financial Structure of the Deal - The $200 million payment will be made in three installments: $100 million at financial closing, $50 million after Environmental Impact Assessment approval and Prefeasibility Study publication, and the final $50 million one year after closing [4]. - Royal Gold will receive 20 ounces of gold per million pounds of recovered copper, initially paying 20% of spot gold prices until 90,000 ounces are delivered, increasing to 60% thereafter [5]. Group 3: Royalty Structure - Royal Gold will earn a 0.30% NSR royalty, which will increase annually until it caps at 0.60% or upon stream commencement [6]. - In the event of a change of control, these rates will vest for the life of the mine, with additional royalties applicable if Solaris sells assets within the project area [6]. Group 4: Stock Performance - Over the past year, Royal Gold's shares have increased by 41.4%, slightly below the industry's growth of 42.3% [7].

Core Viewpoint - Solaris Resources Inc. has secured a US$200 million financing arrangement with RGLD Gold AG, which includes a gold stream and net smelter return royalty, aimed at enhancing liquidity and supporting the Warintza project development [2][3][5]. Financing Agreements - The financing package consists of a non-dilutive US$200 million, with US$100 million available immediately, to fund derisking activities and repay the senior secured debt facility [5][6]. - The structure of the financing aligns with Solaris' strategy to maximize shareholder value without dilution, reinforcing Warintza's status as a tier 1 copper asset [3][5]. Project Development - The financing will support technical studies, permitting, early infrastructure development, and general working capital, ensuring the company is funded through to a final investment decision (FID) [6][19]. - The company plans to publish a Pre-Feasibility Study (PFS) in Q3 2025, followed by a Bankable Feasibility Study [19][20]. Strategic Relationships - Partnering with Royal Gold provides competitive capital costs and a strategic relationship that enhances project flexibility [4][5]. - The financing structure allows for future project financing while maintaining strategic optionality around the Warintza project [18]. Exploration Potential - The Stream area of interest is limited, allowing Solaris to retain significant exploration upside, with commercial optionality around high-priority targets within the Warintza district [9][15]. - The company is also advancing exploration across its broader land package of over 260 km², which includes several high-priority regional targets [22]. Environmental and Social Commitment - Royal Gold has committed to financially support Solaris' environmental and social programs, reflecting a commitment to sustainable development and stakeholder engagement [17].

Core Viewpoint - Solaris Resources Inc. has secured a US$200 million financing arrangement with RGLD Gold AG, which includes a gold stream and net smelter return royalty, aimed at enhancing liquidity and supporting the Warintza project development [2][3][5]. Financing Agreements - The financing package consists of a non-dilutive US$200 million funding, with US$100 million available immediately, to repay senior secured debt and fund derisking activities until a final investment decision (FID) [5][6]. - The structure of the financing aligns with Solaris' strategy to maximize shareholder value through non-dilutive means, reinforcing Warintza's status as a tier 1 copper asset [3][5]. Project Development - The financing will support technical studies, permitting activities, early infrastructure development, and general working capital, ensuring the company is funded through to FID [6][21]. - The company plans to publish a Pre-Feasibility Study (PFS) in Q3 2025, followed by a Bankable Feasibility Study [18][19]. Strategic Relationships - Partnering with Royal Gold is expected to provide competitive capital costs and a strategic relationship that enhances project flexibility [4][5]. - The financing structure allows for future project financing while maintaining strategic optionality around the Warintza project [17]. Market and Economic Context - The financing reflects strong investor confidence in Ecuador as a mining jurisdiction, supported by government commitment to the sector [4][19]. - The recent political continuity in Ecuador, following the re-election of President Daniel Noboa, is seen as beneficial for the mining sector [19]. Exploration Potential - Solaris retains significant exploration upside within the Warintza district, with commercial optionality around high-priority targets [5][14]. - The company is also advancing exploration across its broader land package of over 260 km², which includes several high-priority regional targets [21].

Core Insights - Solaris Resources Inc. has completed a significant drilling campaign at its Warintza Project in Ecuador, enhancing the value of this major copper asset [2][12] - The company aims to upgrade a substantial portion of Inferred Resources to Measured and Indicated categories with an updated Mineral Resource Estimate targeted for Q3 2025 [3][12] - Political stability in Ecuador, reinforced by the re-election of President Daniel Noboa, supports the company's progress on permitting and stakeholder engagement [7][12] Drilling and Resource Development - Over 82,000 metres of infill drilling were completed between January 2024 and February 2025, with additional geotechnical, hydrogeological, and metallurgical drilling [3][4] - A total of over 200,000 metres have been drilled across the Warintza Central and East porphyry systems, supporting a flexible mine plan that reduces initial capital requirements [4] - The company is advancing its Pre-Feasibility Study, with completion targeted for Q3 2025, transitioning into a Bankable Feasibility Study thereafter [8][12] Infrastructure and Technical Advancements - Solaris has completed 20 kilometres of internal road access, facilitating year-round access to project areas and reducing construction costs [6] - The company is collaborating with Ecuador's Ministries of Environment and Mines on the Environmental Impact Assessment, with approval expected by mid-2025 [7][12] Community and Stakeholder Engagement - Solaris is committed to a participatory mining model, fostering local partnerships and social license while aiming for a Final Investment Decision by the end of 2026 [9][12] - The company emphasizes sustainable and responsible development, focusing on creating lasting value for all stakeholders [11][12]

Core Points - Solaris Resources Inc. has formed an Inter-Institutional working group with the Pueblo Shuar Arutam organization (PSHA) and local communities to enhance dialogue and cooperation [2][3][7] - The PSHA approved the signing of a Letter of Intent (LOI) to advance discussions towards a future Cooperation Agreement [3][6][7] - The company has completed an infill drilling program totaling over 80,000 meters, which will support an updated Mineral Resource Estimate (MRE) expected in mid-2025 [4][7] - The Warintza Project is positioned as a sustainable mining initiative that incorporates the insights and values of indigenous populations, aiming for responsible resource development [5][8] Company Developments - The Inter-Institutional working group aims to promote transparent dialogue and workshops to facilitate community consent for future agreements [6][8] - The Impacts and Benefits Agreement (IBA) with local Shuar Centers has been updated multiple times since its initial signing in September 2020, ensuring ongoing community support [3][7] - The company emphasizes its commitment to corporate social responsibility (CSR) through initiatives that support health, education, and sustainable development in Shuar communities [8] Project Highlights - The Warintza Project is a significant copper-gold porphyry deposit with a resource endowment of over 2.3 billion tonnes, located in southeast Ecuador [9] - The updated MRE will be integrated into the Pre-Feasibility Study (PFS) scheduled for release in Q3 2025 [4][7] - The company is focused on converting Inferred mineral resources to Measured and Indicated categories through its drilling program [4][7]

For those looking to find strong Basic Materials stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Solaris Resources Inc. (SLSR) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Basic Materials peers, we might be able to answer that question.Solaris Resources Inc. is a member of the Basic Materials sector. This group includes 235 individual stocks and currently holds a Zacks Sector Rank of #11. ...

Core Viewpoint - Solaris Resources Inc. is completing its emigration to Switzerland by year-end 2024 to maximize shareholder returns and align with Ecuadorian regulators as it advances the Warintza permitting process [1][13]. Management Changes - Matthew Rowlinson has been appointed as President and CEO effective January 1, 2025, and will be based in Zug, Switzerland [2]. - Rowlinson brings extensive experience from Glencore, where he was Head of Copper Business Development [7][8]. - Additional board appointments include Rodrigo Borja and Hans Wick, effective January 1, 2025, while current Canadian directors will resign [3][10]. Project Leadership - Rowlinson will lead the executive team supported by Javier Toro, the Chief Operating Officer, who has built a technical team in Lima, Peru [4]. - The Warintza Project team includes experienced professionals from senior copper mining companies [4]. Spin-Out Strategy - The company plans to complete a spin-out transaction to leverage non-core assets, forming a new growth-oriented copper company [6]. - This new entity will focus on consolidating operating and advanced development assets with significant upside potential [6]. Emigration Details - Effective January 1, 2025, Solaris will close its Canadian offices and will not have any operations or assets in Canada [13]. - The company does not expect adverse tax consequences from this emigration [14]. Executive Chairman's Remarks - Richard Warke, Executive Chairman, expressed gratitude to the Solaris team for advancing the Warintza project and emphasized the commitment to maximizing shareholder returns [15][16]. - The reorganization is seen as a strategic move to align interests with regulators [17]. Company Overview - Solaris Resources Inc. is advancing a portfolio of copper and gold assets in the Americas, including the Warintza Project in Ecuador and a 60% interest in the La Verde joint-venture project in Mexico [18].