# FS

Source Brief: https://evesgoldminers.com/research/source-briefs/impact-silver-corp-fs-5145f76d
Original source: https://impactsilver.com/site/assets/files/6199/ipt-2026-04-15-audited-annual-financial-statements-english-1ccc_pdf.pdf
EGM generated: 2026-09-27
Company: IMPACT Silver Corp. (IPT)

## Use Note

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## Extracted Document Text

# FS

Source: https://impactsilver.com/site/assets/files/6199/ipt-2026-04-15-audited-annual-financial-statements-english-1ccc_pdf.pdf
Fetched: 2026-09-12T07:04:07.527+00:00
Source artifact: 5145f76d-b399-4dca-8fa0-29fdb581a6c1
Normalizer input: text

## Content

# FS
IMPACT SILVER CORP.
CONSOLIDATED FINANCIAL STATEMENTS
For the Years ended
December 31, 2025 and 2024
Independent auditor’s report
To the Shareholders of IMPACT Silver Corp.
Our opinion
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects,
the financial position of IMPACT Silver Corp. and its subsidiaries (together, the Company) as at
December 31, 2025 and its financial performance and its cash flows for the year then ended in accordance
with International Financial Reporting Standards as issued by the International Accounting Standards
Board (IFRS Accounting Standards).
What we have audited
The Company’s consolidated financial statements comprise:
• the consolidated statement of financial position as at December 31, 2025;
• the consolidated statement of loss and comprehensive loss for the year then ended;
• the consolidated statement of changes in shareholders’ equity for the year then ended;
• the consolidated statement of cash flows for the year then ended; and
• the notes to the consolidated financial statements, comprising material accounting policy information and
other explanatory information.
Basis for opinion
We conducted our audit in accordance with Canadian generally accepted auditing standards. Our
responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of
the consolidated financial statements section of our report.
PricewaterhouseCoopers LLP
PwC Place, 250 Howe Street, Suite 1400
Vancouver, British Columbia, Canada V6C 3S7
T.: +1 604 806 7000, F.: +1 604 806 7806
Fax to mail: ca_vancouver_main_fax@pwc.com
“PwC” refers to PricewaterhouseCoopers LLP, an Ontario limited liability partnership.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Independence
We are independent of the Company in accordance with the ethical requirements that are relevant to our
audit of the consolidated financial statements in Canada. We have fulfilled our other ethical responsibilities
in accordance with these requirements.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the consolidated financial statements for the year ended December 31, 2025. These matters were
addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our
opinion thereon, and we do not provide a separate opinion on these matters.
Key audit matter How our audit addressed the key audit matter
Impairment assessment of the property, plant and Our approach to addressing the matter included the following
equipment of the Plomosas cash generating unit procedures, among others:
(CGU) • Tested how management determined the recoverable
amount of the Plomosas CGU, which included the
Refer to note 3 – Material accounting policy information,
following:
note 4 – Estimates, assumptions and judgments, note 11 –
Property, plant and equipment and note 23 – Segmented ‒ Assessed the appropriateness of the method and
information to the consolidated financial statements. discounted cash flow model used to determine the
recoverable amount and tested its mathematical
As at December 31, 2025, the total net book value of property
accuracy.
plant and equipment (PP&E) in the Plomosas CGU was
$4.5 million. ‒ Tested underlying data used in the discounted cash
flow model.
When impairment indicators of PP&E exist, an impairment
assessment is conducted at a CGU level. An impairment loss is ‒ Evaluated the reasonableness of future production
recognized if the carrying amount of a CGU exceeds its volumes, operating costs and commodity prices used
recoverable amount. in the discounted cash flow model by:
In late 2025, the Company assessed the Plomosas CGU for o comparing future commodity prices to
impairment and identified an impairment indicator as the independent third-party forecasts, comparing
underground performance did not consistently meet internally future production volumes to third-party evidence
established operating thresholds required for sustainable supporting estimated ore deliveries and future
Key audit matter How our audit addressed the key audit matter
results, which required management to determine the operating costs against the current and past
recoverable amount of the Plomosas CGU. performance of the Plomosas CGU; and
The recoverable amount of the Plomosas CGU was based on a o assessing whether these assumptions were
fair value less cost of disposal method using an after-tax consistent with evidence obtained in other areas
discounted cash flow model. The valuation incorporated key of the audit.
assumptions related to future production volumes, operating
• Professionals with specialized skill and knowledge in the
costs, commodity prices, and an after-tax discount rate. The
field of valuation assisted us in assessing the
determination of the recoverable amount is subject to risk,
reasonableness of the after-tax discount rate used within
judgment and uncertainty.
the model.
Based on the impairment assessment conducted,
• Tested the disclosures, including the sensitivity analysis,
the Company recorded an impairment charge of $8.8 million on
made in the consolidated financial statements with regard
its mining assets related to the Plomosas CGU.
to the impairment assessment for the Plomosas CGU.
We considered this a key audit matter due to the significant
audit effort and subjectivity in performing procedures to test the
key assumptions used by management in determining the
recoverable amount, which involved judgment by management.
We were also assisted by professionals with specialized skill
and knowledge in the field of valuation.
Comparative information
The consolidated financial statements of the Company for the year ended December 31, 2024 were audited
by another auditor who expressed an unmodified opinion on those consolidated financial statements on
May 5, 2025.
Other information
Management is responsible for the other information. The other information comprises the Management’s
Discussion and Analysis.
Our opinion on the consolidated financial statements does not cover the other information and we do not
express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other
information identified above and, in doing so, consider whether the other information is materially
inconsistent with the consolidated financial statements or our knowledge obtained in the audit, or otherwise
appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of management and those charged with governance for the
consolidated financial statements
Management is responsible for the preparation and fair presentation of the consolidated financial
statements in accordance with IFRS Accounting Standards, and for such internal control as management
determines is necessary to enable the preparation of consolidated financial statements that are free from
material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Company’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using
the going concern basis of accounting unless management either intends to liquidate the Company or to
cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting process.
Auditor’s responsibilities for the audit of the consolidated financial statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with Canadian generally accepted auditing standards will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise
professional judgment and maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the consolidated financial statements, whether
due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the Company’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that
may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in our auditor’s report to the related
disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated financial statements,
including the disclosures, and whether the consolidated financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
• Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial
information of the entities or business units within the Company as a basis for forming an opinion on the
consolidated financial statements. We are responsible for the direction, supervision and review of the
audit work performed for purposes of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters
that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

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