Ivanhoe Electric Inc. 10-Q

Item 3. Quantitative and Qualitative Disclosures about Market Risk. Interest Rate Risk We have both fixed-rate and variable-rate debt. Fixed-rate debt. Our fixed rate debt at September 30, 2025 consists of a convertible bond that has a fixed interest rate of 8.0% per annum. The convertible bond is accounted for at amortized cost. Any changes in the market interest rates associated with these financial instruments would not impact our net loss, comprehensive loss or future cash flows. 28 Variable-rate debt. Our variable-rate debt at September 30, 2025 consists of a secured promissory note issued in connection with the acquisition of land at our Santa Cruz Copper Project. The promissory note has an annual interest rate of U.S. prime plus 1%. As at September 30, 2025, three installments of $12.1 million plus accrued interest remain and are due in November 2025, 2026 and 2027. We performed a sensitivity analysis to estimate the impact to interest expense, arising from a 100 basis points adverse movement to the prime rate for the three months ended September 30, 2025 and nine months ended September 30, 2025. The sensitivity analysis indicated that a hypothetical 100 basis points adverse movement would result in an approximate $0.1 million increase to interest expense and a $0.1 million increase to the Company’s net loss for the three months ended September 30, 2025 and in an approximate $0.3 million increase to interest expense and a $0.3 million increase to the Company’s net loss for the nine months ended September 30, 2025. Foreign Currency Risk Our functional currency is the U.S. dollar. The majority of our expenditure is incurred in U.S. dollars at our exploration projects located in the United States and are not subject to foreign currency risk. Outside of the United States, we are subject to foreign currency risk when we undertake transactions in foreign currencies, particularly certain operating expenditures incurred in Colombia and Canada. As the exchange rates between the U.S. dollar and our foreign currencies fluctuate, we experience foreign exchange gains and losses. The carrying amounts of our Colombian Pesos and Canadian dollar denominated monetary assets and liabilities at September 30, 2025 are as follows: September 30, 2025 Colombian Peso Balance (in 000’s USD Equivalent) Canadian Dollar Balance (in 000’s USD Equivalent) Cash $ 409 $ 3,599 Other receivables 21 195 Due from related parties 11 — Accounts payable and accrued liabilities (1,702) (491) Due from related parties (27) — Other liabilities (1,202) — $ (2,491) $ 3,302 Nine Months Ended September 30, 2025 Opening exchange rate (1 U.S. dollar to Colombian Pesos) 4,403 Closing exchange rate (1 U.S. dollar to Colombian Pesos) 3,904 Appreciation/(devaluation) of Colombian Peso 11.0 % Opening exchange rate (1 U.S. dollar to Canadian dollars) 1.4388 Closing exchange rate (1 U.S. dollar to Canadian dollars) 1.3922 Appreciation/(devaluation) of Canadian dollar 3.0 % As at September 30, 2025, a 10% depreciation or appreciation of these foreign currencies against the U.S. dollar would have resulted in an approximate $0.1 million decrease or increase in the Company’s net loss for the nine months ended September 30, 2025. 29