Item 3. Quantitative and Qualitative Disclosures About Market Risk
ITEM
3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Interest
rate risk
The
Company’s exposure to changes in market interest rates, relates primarily to the Company’s earned interest income
on cash deposits and short-term investments. The Company maintains a balance between the liquidity of cash assets and the interest
rate return thereon. The carrying amount of financial assets, net of any provisions for losses, represents the Company’s
maximum exposure to credit risk.
Foreign
currency exchange risk
The
Company incurs expenditures in both U.S. dollars and Canadian dollars. Canadian dollar expenditures are primarily related to certain
Common Share-related costs and corporate professional services. As a result, currency exchange fluctuations may impact the costs
of our operating activities. To reduce this risk, we maintain sufficient cash balances in Canadian dollars to fund expected near-term
expenditures.
Commodity
price risk
The
Company is exposed to commodity price risk related to the elements associated with the Elk Creek Project. A significant decrease
in the global demand for these elements may have a material adverse effect on our business. The Elk Creek Project is not in production,
and the Company does not currently hold any commodity derivative positions.
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.