Q2 2026 - Financial Statements Download

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# Q2 2026 - Financial Statements Download

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# Q2 2026 - Financial Statements Download
LUNR ROYALTIES CORP.
(formerly 17156138 Canada Inc.)
Condensed Interim Financial Statements
For the three and six months ended June 30, 2026
(Unaudited)
LunR Royalties Corp. (formerly 17156138 Canada Inc.)
Condensed Interim Statement of Financial Position
(Expressed in U.S. Dollars - Unaudited)
In 000s Note June 30, 2026 December 31, 2025
Assets
Current:
Cash $ 3,307 $ 1,372
Receivables and other assets 107 54
3,414 1,426
Non-current:
Stream and royalty interests 7 669,955 1,678
Total assets $ 673,369 $ 3,104
Liabilities
Current:
Trade payables and accrued liabilities $ 2,309 $ 241
Total liabilities 2,309 241
Shareholders’ equity
Share capital 8 673,426 3,257
Contributed surplus 36 11
Deficit (2,466) (478)
Accumulated other comprehensive income 64 73
Total shareholders’ equity 671,060 2,863
Total liabilities and shareholders’ equity $ 673,369 $ 3,104
FDN Transaction (Note 6)
Commitments (Note 14)
On behalf of the Board of Directors:
/s/Adam I. Lundin /s/Martino de Ciccio
Director Director
The accompanying notes are an integral part of these condensed interim financial statements.
LunR Royalties Corp. (formerly 17156138 Canada Inc.)
Condensed Interim Statement of Comprehensive Income (Loss)
(Expressed in U.S. Dollars - Unaudited)
In 000s Three months ended Six months ended
Except for per share amounts Note June 30, 2026 June 30, 2026
Sales revenue 11 $ 4,607 $ 4,607
Cost of sales, excluding depletion 11 (488) (488)
Depletion 7 (2,757) (2,757)
Total cost of sales $ (3,245) $ (3,245)
Gross profit $ 1,362 $ 1,362
Operating expenses
Administrative expenses 9 $ (854) $ (1,802)
Corporate development (662) (1,555)
Operating loss $ (154) $ (1,995)
Other income
Foreign exchange gain 7 7
Net loss $ (147) $ (1,988)
Loss per share
Basic and diluted 8 $ (0.00) $ (0.02)
Weighted average common shares
outstanding
Basic and diluted 8 88,700,033 79,590,009
Other comprehensive income (loss)
Items that will not be reclassified to net loss:
Currency translation adjustment 9 (9)
Comprehensive loss $ (138) $ (1,997)
The accompanying notes are an integral part of these condensed interim financial statements.
LunR Royalties Corp. (formerly 17156138 Canada Inc.)
Condensed Interim Statement of Cash Flow
(Expressed in U.S. Dollars - Unaudited)
Three months ended Six months ended
In 000s Note June 30, 2026 June 30, 2026
Cash flows from operating activities
Net loss for the period $ (147) $ (1,988)
Adjustments for:
Depletion 7 2,757 2,757
Share-based compensation 14 25
Non-cash foreign exchange gain (4) (8)
Changes in non-cash working capital:
Receivables and other assets (31) (51)
Trade payables and accrued liabilities 269 1,190
$ 2,858 $ 1,925
Cash flows used in investing activities
Purchase of fixed assets (2) (2)
$ (2) $ (2)
Cash flows from financing activities
Proceeds from exercises of stock options - 2
$ - $ 2
Effect of foreign exchange rate change on
cash 14 10
Increase in cash $ 2,870 $ 1,935
Cash, beginning of the period 437 1,372
Cash, end of the period $ 3,307 $ 3,307
Significant non-cash transaction – FDN Transaction (Note 6)
The accompanying notes are an integral part of these condensed interim financial statements.
LunR Royalties Corp. (formerly 17156138 Canada Inc.)
Condensed Interim Statement of Changes in Equity
(Expressed in U.S. Dollars - Unaudited)
Accumulated
other Total
Number of Share Contributed comprehensive shareholders’
In 000s Note shares capital surplus Deficit income equity
Balance at January 1, 2026 70,347,515 $ 3,257 $ 11 $ (478) $ 73 $ 2,863
Shares issued pursuant to acquisition of
6 50,505,051 670,167 - - - 670,167
the FDN silver stream
Share-based compensation - - 25 - - 25
Exercise of options 8 37,500 2 - - - 2
Comprehensive loss for the period - - - (1,988) (9) (1,997)
Balance at June 30, 2026 120,890,066 $ 673,426 $ 36 $ (2,466) $ 64 $ 671,060
The accompanying notes are an integral part of these condensed interim financial statements.
LunR Royalties Corp. (formerly 17156138 Canada Inc.)
Notes to the Condensed Interim Financial Statements
For the three and six months ended June 30, 2026
(Expressed in U.S. Dollars, unless otherwise stated - Unaudited)
1. NATURE OF OPERATIONS
LunR Royalties Corp. (“LunR” or the “Company”) was incorporated on July 14, 2025, under the Canada
Business Corporations Act (the “CBCA”) as a wholly-owned subsidiary of NGEx Minerals Ltd. (“NGEx”),
under the name “17156138 Canada Inc.”. LunR was incorporated for the purpose of undertaking a
share capital reorganization with NGEx by way of a statutory plan of arrangement under the CBCA,
which, upon its completion on October 23, 2025, ultimately resulted in 80.1% of the common shares
of LunR (“LunR Shares”) being distributed to shareholders of NGEx (“NGEx Shareholders”) (the
“Arrangement”), with NGEx retaining a then 19.9% interest in LunR.
Following completion of the Arrangement, LunR is now a standalone royalty and streaming company,
which is focused on growing and diversifying a portfolio of royalties and metals purchase agreements
(“Streams”) in the mining and mineral resource industry through acquisitions and strategic investments,
leveraging deep industry knowledge and expertise of its Board of Directors and management. LunR
intends to accumulate and manage a portfolio of diversified royalty and Stream interests that may be
acquired directly from mine operators, as well as third-party holders of existing royalties and Streams,
across the spectrum of project stages, from grassroots to production. LunR currently holds a silver
Stream on the Fruta del Norte gold mine (“FDN”) in Ecuador and net smelter returns (“NSR”) royalties
on the mineral concessions underlying NGEx’s Los Helados deposit in Chile and its Lunahuasi deposit
in Argentina (Note 7).
LunR’s registered office is located at Suite 2200, 885 West Georgia Street, Vancouver, British Columbia,
V6C 3E8, Canada and its head office is located at Suite 2800, 1055 Dunsmuir Street, Vancouver, British
Columbia V7X 1L2. The Company is listed on the Toronto Stock Exchange (“TSX”) under the symbol
“LUNR”.
2. ARRANGEMENT
On July 21, 2025, the Company entered into a royalty purchase agreement with another wholly-
owned subsidiary of NGEx, Pampa Exploración S.A. (“Pampa”), whereby Pampa agreed to sell a
1.00% NSR royalty on the Nacimiento I concession, located in San Juan Province, Argentina, on
which NGEx’s 100% owned Lunahuasi Project is currently defined, to LunR (the “Lunahuasi
Royalty”) in exchange for cash consideration of $700,000.
In addition, on August 5, 2025, LunR also entered into a royalty purchase agreement with another
wholly-owned subsidiary of NGEx, Minera Frontera del Oro SPA (“MFDO”), which holds the Los
Helados Project, located in Region III, Chile, on behalf of an unincorporated joint venture between
NGEx and Lundin Mining Corp., whereby MFDO agreed to sell a 1.38% NSR royalty to LunR on the
concessions underlying the Los Helados properties in Chile (the “Los Helados Royalty”) in exchange
for cash consideration of $938,400.
In connection with the foregoing, on July 21, 2025, LunR also entered into an arrangement
agreement with NGEx (the “Arrangement Agreement”), pursuant to which NGEx would undertake
the Arrangement, which resulted in, among other things, the LunR Shares being distributed to the
NGEx Shareholders.
The Arrangement Agreement described the terms of the Arrangement, which, among other things,
included:
6
LunR Royalties Corp. (formerly 17156138 Canada Inc.)
Notes to the Condensed Interim Financial Statements
For the three and six months ended June 30, 2026
(Expressed in U.S. Dollars, unless otherwise stated - Unaudited)
• Each common share of NGEx (each, a “NGEx Share”) outstanding at the close of business
on the business day immediately preceding the Effective Time (as defined below) was
redesignated and exchanged as part of a reorganization of the share capital of NGEx, and in
accordance with section 86 of the Income Tax Act (Canada), for (i) one (1) new common
share of NGEX (each, a “New NGEx Share”), which such New NGEx Share is identical to the
NGEx Shares immediately prior to the Effective Time and (ii) 1/4 of a LunR Share; and
• Each outstanding stock option of NGEx (each, a “NGEx Option”) that was outstanding
immediately before the Effective Time was exchanged for (i) one (1) replacement stock
option of NGEx (each, a “NGEx Replacement Option”) to purchase from NGEx one New NGEx
Share having an exercise price (rounded up to the nearest whole cent) equal to the product
of the exercise price of each NGEx Option so exchanged immediately before the Effective
Time multiplied by the fair market value of a New NGEx Share at the Effective Time divided
by the total of the fair market value of a New NGEx Share and the fair market value of 1/4
of a LunR Share at the Effective Time, and (ii) one (1) fully-vested stock option of LunR
(each, a “LunR Option”) to acquire 1/4 of a LunR Share, each whole LunR Option having an
exercise price (rounded up to the nearest whole cent) equal to the product of the exercise
price of the NGEx Option so exchanged immediately prior to the Effective Time multiplied by
the fair market value of 1/4 of a LunR Share at the Effective Time divided by the total of the
fair market value of one New NGEx Share and 1/4 of a LunR Share at the Effective Time.
On September 11, 2025, LunR changed its name from “17156138 Canada Inc.” to “LunR Royalties
Corp.”.
On October 15, 2025, prior to the completion of the Arrangement, LunR issued 13,370,107 LunR Shares
to NGEx for aggregate gross proceeds of C$4,350,000 (the “Capital Contribution”). Such Capital
Contribution was used to fund the acquisition of the Lunahuasi Royalty and Los Helados Royalty and
LunR’s working capital requirements for at least 12 months following completion of the Arrangement.
Following completion of the Capital Contribution, LunR closed the transactions contemplated by the
Lunahuasi Royalty Purchase Agreement and the Los Helados Royalty Purchase Agreement.
The Company’s acquisition of the Lunahuasi Royalty and Los Helados Royalty were considered
related party transactions as the sellers in the respective transactions at the time the transactions
were entered into and completed were related to LunR by way of a common controlling shareholder,
NGEx. On October 23, 2025, following completion of the Arrangement, NGEx ceased to be a
controlling shareholder of the Company.
The Arrangement was approved by the NGEx Shareholders at the special meeting of NGEx Shareholders
held on September 12, 2025, and a final order approving the Arrangement was obtained from the
Supreme Court of British Columbia on September 18, 2025. Subsequently, the Arrangement was
completed and became effective at 12:01 a.m. on October 23, 2025 (the “Effective Time”). Upon
completion of the Arrangement, shareholders of NGEx held an aggregate of 53,816,239 LunR Shares,
representing a 80.1% ownership interest in LunR, and NGEx held 13,370,107 LunR Shares, being the
LunR Shares issued by LunR to NGEx pursuant to the Capital Contribution, representing a 19.9%
ownership interest in LunR. In addition, immediately following the completion of the Arrangement,
LunR Options exercisable to acquire 3,198,669 LunR Shares at prices between C$0.06 – C$0.08 per
share were issued to former holders of NGEx Options. As at June 30, 2026, all LunR Options granted
pursuant to the Arrangement have been exercised.
7
LunR Royalties Corp. (formerly 17156138 Canada Inc.)
Notes to the Condensed Interim Financial Statements
For the three and six months ended June 30, 2026
(Expressed in U.S. Dollars, unless otherwise stated - Unaudited)
3. BASIS OF PRESENTATION
a) Statement of compliance
These condensed in

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