Q3 2025 - Financial Statements and MD&A Download

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# Q3 2025 - Financial Statements and MD&A Download

Source: https://www.lunrroyalties.com/_resources/financials/FS_20250930.pdf?v=091207
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# Q3 2025 - Financial Statements and MD&A Download
LUNR ROYALTIES CORP.
(formerly 17156138 Canada Inc.)
Financial Statements
From the Date of Incorporation on July 14, 2025
to September 30, 2025
(Unaudited Expressed in U.S. Dollars)
LunR Royalties Corp. (formerly 17156138 Canada Inc.)
Statement of Financial Position
(Unaudited - Expressed in U.S. Dollars)
September 30,
Note 2025
ASSETS
Current assets:
Cash $ 1
Receivables and other assets 4 3,951
TOTAL ASSETS 3,952
LIABILITIES
Current liabilities:
Trade payables and accrued liabilities 10
Due to sole shareholder 7,543
TOTAL LIABILITIES 7,553
SHAREHOLDER’S EQUITY
Share capital 5 1
Deficit (3,628)
Accumulated other comprehensive income 26
TOTAL SHAREHOLDER’S EQUITY (3,601)
TOTAL LIABILITIES AND
SHAREHOLDER’S EQUITY $ 3,952
Arrangement (Note 7)
Subsequent Event (Note 8)
On behalf of the Board:
/s/Adam I. Lundin /s/Martino de Ciccio
Director Director
The accompanying notes are an integral part of these interim financial statements.
LunR Royalties Corp. (formerly 17156138 Canada Inc.)
Statement of Comprehensive Loss
(Unaudited - Expressed in U.S. Dollars)
From July 14,
Note 2025
to
September 30,
2025
Expenses
General and administration:
Office and general $ 10
Stock exchange fees 4 3,618
Net loss $ 3,628
Other comprehensive income
Items that may be classified subsequently to net loss:
Currency translation adjustment (26)
Comprehensive loss $ 3,602
Basic and diluted loss per common share $ 3,628
Weighted average common shares
outstanding 5 1
The accompanying notes are an integral part of these interim financial statements.
LunR Royalties Corp. (formerly 17156138 Canada Inc.)
Statement of Cash Flow
(Unaudited - Expressed in U.S. Dollars)
From July 14,
Note 2025
to
September 30,
2025
Cash flows from (used in) operating activities
Net loss for the period (3,628)
Net changes in working capital and other items
Prepaids (3,951)
Trade payables and accrued liabilities 10
(7,569)
Cash flows from financing activities
Loan proceeds from sole shareholder 7,543
Proceeds from share subscription at incorporation 5 1
7,544
Effect of exchange rate change on cash 26
Increase in cash during period 1
Cash, beginning of period $ -
Cash, end of period $ 1
The accompanying notes are an integral part of these financial statements.
1
LunR Royalties Corp. (formerly 17156138 Canada Inc.)
Statement of Changes in Equity
(Unaudited - Expressed in U.S. Dollars)
Accumulated
Other Total
Number Share Comprehensive Shareholder’s
Note of Shares Capital Deficit Income Equity
Opening Balance, July 14, 2025 - - - - -
Shares issued at incorporation 5 1 1 - - 1
Net loss - - (3,628) - (3,628)
Other comprehensive income - - - 26 26
Ending Balance, September 30, 2025 1 $ 1 $ (3,628) $ 26 $ (3,601)
The accompanying notes are an integral part of these financial statements.
LunR Royalties Corp. (formerly 17156138 Canada Inc.)
Notes to the Financial Statements
From the Date of Incorporation on July 14, 2025 to September 30, 2025
(Unaudited - Expressed in U.S. Dollars, unless otherwise stated)
1. ORGANIZATION AND NATURE OF OPERATIONS
LunR Royalties Corp. (“LunR” or the “Company”) was incorporated on July 14, 2025, under the laws of
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 (Note 7).
Following completion of the Arrangement, LunR is now a standalone royalty and streaming company,
which will focus 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 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.
2. BASIS OF PRESENTATION
These financial statements have been prepared in accordance with International Financial Reporting
Standards, as issued by the International Accounting Standards Board (“IFRS Accounting Standards”),
on a going concern basis, which contemplates the realization of assets and settlement of liabilities in
the normal course of business. These financial statements are prepared on a historical cost basis except
for certain financial assets, which are measured at fair value.
These financial statements cover a period beginning on the date of incorporation on July 14, 2025 to
September 30, 2025. Accordingly, the requirements of IFRS 1, First-time adoption of International
Financial Reporting Standards (“IFRS 1”), have been applied. As the Company did not have opening
balances, an opening statement of financial position has not been included in these financial
statements.
These financial statements have been prepared by management and were authorized for issuance by
the Board of Directors of the Company on November 26, 2025.
2
LunR Royalties Corp. (formerly 17156138 Canada Inc.)
Notes to the Financial Statements
From the Date of Incorporation on July 14, 2025 to September 30, 2025
(Unaudited - Expressed in U.S. Dollars, unless otherwise stated)
3. SUMMARY OF MATERIAL ACCOUNTING POLICIES
The accounting policies set out below were used by the Company in its preparation of these financial
statements covering the date of incorporation on July 14, 2025, to September 30, 2025.
The Company did not have any income tax expense or recovery in the period.
The Company did not have any significant accounting judgments or estimates as at September 30,
2025, or for the period then ended.
a) Functional and presentation currency
The functional currency of an entity is the currency of the primary economic environmental in which the
entity operates. The presentation currency for an entity is the currency in which the entity elects to
present its financial statements.
The functional currency of the Company is the Canadian dollar, and its results and financial position
have been translated into a U.S. dollar presentation currency as follows:
• Assets and liabilities for each statement of financial position presented are translated using the
exchange rate prevailing at the date of that statement of financial position;
• Income, expenses, and other comprehensive income for each statement of comprehensive
income are translated at average exchange rates (unless this average is not a reasonable
approximation of the cumulative effect of the rates prevailing on the transaction dates, in which
case income and expenses are translated at the rate on the dates of the transactions); and
• All resulting exchange differences are recognized as a separate component of equity and in other
comprehensive income.
b) Impairment of non-financial assets
Non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate
that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by
which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher
of an asset’s fair value less costs to sell and value in use. For the purposes of assessing impairment,
assets are grouped at the lowest levels for which there are separately identifiable cash inflows (cash-
generating units, or “CGU’s”). Value in use is determined as the present value of future cash inflows
expected to be derived from a CGU using a pre-tax discount rate that reflects the current time value of
money and the risks specific to that CGU.
Non-financial assets that have been previously impaired are reviewed for possible reversal of the
impairment at each reporting date.
3
LunR Royalties Corp. (formerly 17156138 Canada Inc.)
Notes to the Financial Statements
From the Date of Incorporation on July 14, 2025 to September 30, 2025
(Unaudited - Expressed in U.S. Dollars, unless otherwise stated)
c) Financial instruments
(i) Recognition
The Company measures and classifies its financial assets and liabilities based on its business model for
managing its financial assets and the contractual cash flow characteristics of those financial assets.
Financial assets are classified into three measurement categories on initial recognition: those measured
at fair value through profit or loss, those measured at fair value through other comprehensive income
(“OCI”) and those measured at amortized cost.
All financial instruments at amortized cost are initially recognized at fair value plus or minus transaction
costs, respectively, and subsequently carried at amortized cost less any impairment.
Investments in marketable securities, such as equity instruments of publicly listed entities, are required
to be measured at fair value through profit or loss, unless the Company makes an irrevocable election
to present subsequent changes in the fair value of such instruments through OCI. The Company has
not elected to measure any of its marketable securities through OCI.
(ii) Derecognition
The Company derecognizes financial assets when the contractual rights to cash flows from the financial
assets expire, or when it transfers the financial assets and substantially all the associated risk and
rewards of ownership to another entity. A financial liability is derecognized when the obligation under
the liability is discharged, canceled or expired. Gains and losses on derecognition of financial assets and
liabilities are generally recognized in the consolidated statement of comprehensive loss.
(iii)Impairment
The Company recognizes a loss allowance for expected credit losses on financial assets that are
measured at amortized costs based on a probability-weighted estimate of credit losses over the expected
life of the financial asset.
At each reporting date, the Company measures the loss allowance for the financial asset at an amount
equal to the lifetime expected credit losses if the credit risk on the financial asset has increased
significantly since initial recognition. If at the reporting date, the credit risk on the financial asset has
not increased significantly since initial recognition, the Company measures the loss allowance for the
financial asset at an amount equal to twelve month expected credit losses. Impairment losses on
financial assets carried at amortized cost are reversed in subsequent periods if the expected credit losses
are reversed after the impairment was recognized.
d) Cash
Cash includes cash on hand.
4
LunR Royalties Corp. (formerly 17156138 Canada Inc.)
Notes to the Financial Statements
From the Date of Incorporation on July 14, 2025 to September 30, 2025
(Unaudited - Expressed in U.S. Dollars, unless otherwise stated)
e) Royalty interests
Royalty interests consist of acquired royalty interests. These interests initially are recorded at fair value

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