Trilogy Metals Inc. Leases Disclosure
5) Leases
| (a) | Right-of-use asset |
in thousands of dollars | |||
| $ | | |
Balance as at November 30, 2023 | 113 | ||
Net amortization for lease ended June 30, 2024 | (113) | ||
ROU assets recognized for lease commenced July 1, 2024 | 170 | ||
Net amortization for lease commenced July 1, 2024 | (15) | ||
Balance as at November 30, 2024 | 155 | ||
Net amortization | (38) | ||
Balance as at November 30, 2025 | 117 | ||
| (b) | Lease liabilities |
The Company’s lease arrangement consists of an operating lease for the corporate office. On July 1, 2024, the Company entered into a four-year lease for office space expiring in June 2028. The lease has no extension option. The current monthly lease payment is approximately CDN$9,500 consisting of both base rent and variable operating costs.
Total lease expense recorded within general and administrative expenses was comprised of the following components:
| in thousands of dollars | |||||
Year ended | Year ended | |||||
November 30, 2025 | November 30, 2024 | |||||
$ | | | $ | | ||
Fixed rent expense | 50 | 134 | ||||
Variable rent expense | 21 | 112 | ||||
Total lease expense | 71 | 246 | ||||
Variable lease costs consist primarily of the Company’s portion of operating costs associated with the office space lease as the Company elected to apply the practical expedient not to separate lease and non-lease components. For the year ending November 30, 2025, variable lease costs have been reduced by a refund received for adjusted operating costs from the previous lease.
As at November 30, 2025, the remaining lease term is 2.6 years. The discount rate used to measure the lease liability is 9%. Judgment was used in the determination of the incremental borrowing rate which included estimating the Company’s credit rating.
Supplemental cash flow information relating to our leases during the year ended November 30, 2025 is as follows:
| ● | Cash paid for base rent included in the measurement of lease liabilities was approximately $48,100. |
Future minimum payments relating to the lease recognized in our balance sheet as of November 30, 2025 are as follows:
| in thousands of dollars | ||
November 30, 2025 |
| ||
Fiscal year | $ | | |
2026 |
| 49 | |
2027 |
| 50 | |
2028 |
| 25 | |
Total undiscounted lease payments |
| 124 | |
Effect of discounting |
| (13) | |
Present value of lease payments recognized as lease liability |
| 111 | |
Less: current portion of lease liability | (41) | ||
Long-term portion of lease liability | 70 | ||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 17, 2026 | Showing above |
| 2024 | Feb 14, 2025 | |
| 2023 | Feb 9, 2024 | |
| 2022 | Feb 14, 2023 | |
| 2021 | Feb 11, 2022 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.