How close are we to breach?
1.12× vs <= 3.25×
0.0×1.0×2.0×3.25×
65% cushion · breach at +$0.98B debt or −65% EBITDA
| Covenant | Headline | Current | Threshold | Cushion | Status |
|---|---|---|---|---|---|
| Debt Incurrence § 4.09 |
65% cushion to the leverage ceiling | 1.12× | <= 3.25× | 65% | In Compliance |
| Permitted Liens § 4.12 |
1 computable · Plus 31 qualitative lien carve-outs (unlimited / existing / refinancing) — standard HY patterns. | $138M | cap | — | In Compliance |
| Restricted Payments § 4.07 |
Ratio-conditional gate — currently open (unlimited RP) | — | ≤ 1.50× | — | In Compliance |
| §1.01 Clause | Component | Sign | Amount ($K) | Running |
|---|---|---|---|---|
| start | Consolidated Net Income Income Statement — Net income for the yearFY2025 net income per Consolidated Statements of Income and Comprehensive Income. | = | 79,366 | 79,366 |
| §1.01 Consolidated EBITDA 1(a) | Consolidated Interest Expense Income Statement — Interest expense line only (Note 20). Pure interest component; the three accretion items within Finance Costs are added back separately under clauses 1(h)/(i)/(j) and are NOT included here to avoid double-counting.Capitalized interest of $24,956K (Cash Flow, investing) is NOT included — capitalized to mining assets, not expensed. Prior revisions used the $40,691K Finance Costs total, which double-counted the three accretion items against clauses 1(h)/(i)/(j). | + | 36,895 | 116,261 |
| §1.01 Consolidated EBITDA 1(b) | Income Taxes Income Statement — Income tax expense (current $136,697K less deferred recovery $8,972K)Covenant adds back both current and deferred taxes; net figure = $127,725K. | + | 127,725 | 243,986 |
| §1.01 Consolidated EBITDA 1(c) | Depreciation and Amortization Cash Flow Statement — Depreciation and amortization (consolidated)Includes D&A on all PP&E and intangibles consolidated. | + | 54,084 | 298,070 |
| §1.01 Consolidated EBITDA 1(d) | Impairments Not separately disclosed in FY2025 financialsZero for this period. | + | 0 | 298,070 |
| §1.01 Consolidated EBITDA 1(e) | Share-Based Compensation Note 14(g) — Share-based compensation expense | + | 42,080 | 340,150 |
| §1.01 Consolidated EBITDA 1(f)/(g) | M&A / Restructuring Expenses Not separately disclosedSoto Norte acquisition closed Dec 12, 2025; any integration costs are not separately disclosed in the public audited financials. | + | 0 | 340,150 |
| §1.01 Consolidated EBITDA 1(h) | Accretion of Asset Retirement Obligations Note 20 — Accretion of provisionsNon-cash accretion. | + | 2,074 | 342,224 |
| §1.01 Consolidated EBITDA 1(i) | Non-cash Accretion of Lease Obligations Note 20 — Accretion of lease obligations | + | 241 | 342,465 |
| §1.01 Consolidated EBITDA 1(j) | Accretion of Senior Notes Note 20 — Accretion of Senior NotesNon-cash amortization of issue discount. | + | 1,481 | 343,946 |
| §1.01 Consolidated EBITDA 1(k) | Non-cash FV Loss on Financial Instruments Note 21 — $66.5M from ARIS.WT.A warrants + $24.1M from Gold Notes, net of $13.8M financial-asset gainsNon-cash mark-to-market; required add-back per clause 1(k). | + | 76,808 | 420,754 |
| §1.01 Consolidated EBITDA (2) | Amortization of Deferred Revenue (reversal) Cash Flow Statement — Amortization of deferred revenueSubtracted per clause (2) — non-cash gain reversed out. | - | (6,307) | 414,447 |
| §1.01 Consolidated EBITDA 3(a) | FX Loss (Gain) — eliminate Income Statement — Foreign exchange lossNon-operating FX eliminated per clause 3(a). | + | 39,187 | 453,634 |
| §1.01 Consolidated EBITDA 3(b) | Loss on Disposal of Juby Income Statement — Loss on disposalNon-operating disposal loss added back. | + | 3,200 | 456,834 |
| §1.01 Consolidated EBITDA 3(b) | Loss on Termination of Soto Norte Precious Metals Purchase Agreement Income Statement — Loss on contract terminationOne-time contract-termination loss added back per clause 3(b). | + | 4,990 | 461,824 |
| TOTAL | Covenant EBITDA | = | 461,824 |
| Test | Current | Threshold | Cushion | Capacity gauge | Status |
|---|---|---|---|---|---|
| Consolidated Coverage Ratio Test
§ 4.09(a)(1) [6](1) the Consolidated Coverage Ratio for the Company and its Restricted Subsidiaries is at least 2.00 to 1.00; or |
12.52× | >= 2.00× | 84% | In Compliance | |
| Consolidated Leverage Ratio Test
§ 4.09(a)(2) [8](2) the Consolidated Leverage Ratio for the Company and its Restricted Subsidiaries is no greater than 3.25 to 1.00; and |
1.12× | <= 3.25× | 65% | In Compliance |
| Clause | Basket | Resolved Cap | Formula | Capacity | Section |
|---|---|---|---|---|---|
| (1) | Debt Facility | $100M | the greater of (A) $75.0 million and (B) 4.0% of Consolidated Total Assets |
$100M cap |
4.09(b)(1) [11]in an aggregate amount not to exceed the greater of (A) $75.0 million and (B) 4.0% of Consolidated Total Assets at any time outstanding; |
| (8) | Purchase money and similar obligations | $44M | the greater of (A) $30.0 million and (B) 1.75% of Consolidated Total Assets |
$44M cap |
4.09(b)(8) [34]in an aggregate outstanding principal amount which, when taken together with the principal amount of all other Indebtedness Incurred pursuant to this clause (8) and then outstanding, shall not exceed the greater of (A) $30.0 million and (B) 1.75% of Consolidated Total Assets at any time outstanding; |
| (19) | JV Guarantees | $13M | the greater of (A) $10.0 million and (B) 0.5% of Consolidated Total Assets |
$13M cap |
4.09(b)(19) [21]in an aggregate principal amount under this clause (19) at any one time outstanding not to exceed the greater of (A) $10.0 million and (B) 0.5% of Consolidated Total Assets; |
| (20) | Sale/Leaseback Transactions | $13M | the greater of (x) $10.0 million and (y) 0.5% of Consolidated Total Assets |
$13M cap |
4.09(b)(20) [23]at any one time outstanding not to exceed the greater of (x) $10.0 million and (y) 0.5% of Consolidated Total Assets; |
| (22) | General Indebtedness Basket | $100M | the greater of (A) $75.0 million and (B) 4.0% of Consolidated Total Assets |
$100M cap |
4.09(b)(22) [27]shall not exceed the greater of (A) $75.0 million and (B) 4.0% of Consolidated Total Assets, in the aggregate outstanding at the time of Incurrence. |
| Σ Computable basket capacity | $270M | sum of 5 dollar-quantified clauses | |||
| Clause | Basket | Resolved Cap | Formula | Capacity | Section |
|---|---|---|---|---|---|
| (26) | General Liens Basket | $138M | the greater of (x) $100 million and (y) 5.5% of Consolidated Total Assets |
$138M cap |
Permitted Liens (26) [39](26) Liens securing Indebtedness (other than Subordinated Obligations and Guarantor Subordinated Obligations) in an aggregate principal amount outstanding at any one time not to exceed the greater of (x) $100 million and (y) 5.5% of Consolidated Total Assets; |
| Clause | Basket | Resolved Cap | Formula | Capacity | Section |
|---|---|---|---|---|---|
| (7) | Repurchase of Capital Stock from employees, directors, etc. | $5M | None |
$5M |
4.07(b)(7) [55]redemptions or repurchases pursuant to this clause (7) shall not exceed $5.0 million in the aggregate during any calendar year |
| (15) | General Restricted Payments Basket | $75M | the greater of (x) $50.0 million and (y) 3.0% of Consolidated Total Assets |
$75M |
4.07(b)(15) [44](15) other Restricted Payments in an aggregate amount, when taken together with all other Restricted Payments made pursuant to this clause (15), not to exceed the greater of (x) $50.0 million and (y) 3.0% of Consolidated Total Assets; |
| (16) | Advances or loans for stock purchase plans | $2M | None |
$2M |
4.07(b)(16) [46]provided that the total aggregate amount of Restricted Payments made under this clause (16) does not exceed $2.0 million in any calendar year; and |
| EBITDA ↓ / Debt → | Base | +25% debt +$32M |
+50% debt +$64M |
+100% debt +$128M |
+190% debt +$242M |
|---|---|---|---|---|---|
| Base EBITDA $461.8M |
0.28×91% cushion | 0.35×89% cushion | 0.41×87% cushion | 0.55×83% cushion | 0.80×75% cushion |
| −10% EBITDA $415.6M |
0.31×91% cushion | 0.38×88% cushion | 0.46×86% cushion | 0.61×81% cushion | 0.89×73% cushion |
| −20% EBITDA $369.5M |
0.35×89% cushion | 0.43×87% cushion | 0.52×84% cushion | 0.69×79% cushion | 1.00×69% cushion |
| −50% EBITDA $230.9M |
0.55×83% cushion | 0.69×79% cushion | 0.83×74% cushion | 1.11×66% cushion | 1.60×51% cushion |
| −80% EBITDA $92.4M |
1.38×57% cushion | 1.73×47% cushion | 2.07×36% cushion | 2.76×15% cushion | 4.01×BREACH |