Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2023 | May 09, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 1-13627 | |
Entity Registrant Name | Golden Minerals Co | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 26-4413382 | |
Entity Address, Address Line One | 350 INDIANA STREET, SUITE 650 | |
Entity Address, City or Town | GOLDEN | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80401 | |
City Area Code | 303 | |
Local Phone Number | 839-5060 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | AUMN | |
Security Exchange Name | NYSEAMER | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 177,645,197 | |
Entity Central Index Key | 0001011509 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents (Note 5) | $ 2,001,000 | $ 3,972,000 |
Short-term investments (Note 5) | 12,000 | 20,000 |
Inventories, net (Note 7) | 1,490,000 | 1,371,000 |
Value added tax receivable, net (Note 8) | 2,343,000 | 1,465,000 |
Prepaid expenses and other assets (Note 6) | 996,000 | 1,142,000 |
Total current assets | 6,842,000 | 7,970,000 |
Property, plant and equipment, net (Note 9) | 6,283,000 | 6,416,000 |
Investments (Note 5) | 225,000 | 225,000 |
Other long-term assets (Note 10) | 232,000 | 333,000 |
Total assets | 13,582,000 | 14,944,000 |
Current liabilities | ||
Accounts payable and other accrued liabilities (Note 11) | 4,934,000 | 3,709,000 |
Deferred revenue (Note 9) | 0 | 0 |
Other current liabilities (Note 13) | 407,000 | 640,000 |
Total current liabilities | 5,341,000 | 4,349,000 |
Asset retirement and reclamation liabilities (Note 12) | 4,060,000 | 3,993,000 |
Other long-term liabilities (Note 13) | 100,000 | 122,000 |
Total liabilities | 9,501,000 | 8,464,000 |
Commitments and contingencies (Note 20) | ||
Equity (Note 16) | ||
Common stock, $.01 par value, 350,000,000 shares authorized; 173,008,829 and 170,258,853 shares issued and outstanding respectively | 1,730,000 | 1,703,000 |
Additional paid-in capital | 543,577,000 | 542,737,000 |
Accumulated deficit | (541,226,000) | (537,960,000) |
Shareholders' equity | 4,081,000 | 6,480,000 |
Total liabilities and equity | $ 13,582,000 | $ 14,944,000 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 350,000,000 | 350,000,000 |
Common stock, shares issued | 173,008,829 | 170,258,853 |
Common stock, shares outstanding | 173,008,829 | 170,258,853 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue: | ||
Sale of metals (Note 17) | $ 4,217,000 | $ 7,506,000 |
Total revenue | 4,217,000 | 7,506,000 |
Costs and expenses: | ||
Cost of metals sold (exclusive of depreciation shown below) (Note 17) | (4,046,000) | (4,322,000) |
Exploration expense | (1,339,000) | (1,666,000) |
El Quevar project expense | (151,000) | (117,000) |
Velardena care and maintenance costs | (247,000) | (536,000) |
Administrative expense | (1,331,000) | (1,272,000) |
Stock-based compensation | (189,000) | (149,000) |
Reclamation expense | (73,000) | (69,000) |
Other operating income, net | 23,000 | 387,000 |
Depreciation and amortization | (99,000) | (65,000) |
Total costs and expenses | (7,452,000) | (7,809,000) |
Loss from operations | (3,235,000) | (303,000) |
Other income (expense): | ||
Interest and other income (expense), net (Note 18) | 2,000 | (3,000) |
Other income | 25,000 | |
Gain on foreign currency transactions | 18,000 | 50,000 |
Total other income (expense) | 20,000 | 72,000 |
Loss from operations before income taxes | (3,215,000) | (231,000) |
Income taxes (Note 15) | (51,000) | (85,000) |
Net loss | $ (3,266,000) | $ (316,000) |
Net loss per common share - basic | ||
Net loss per common share - basic | $ (0.02) | $ 0 |
Weighted-average shares outstanding - basic (1) | 171,322,376 | 162,511,278 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Employee Stock Option | ||
Dilutive shares | 11,005,040 | 8,603,372 |
Warrant | ||
Dilutive shares | 9,803,846 | 12,803,846 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows used in operating activities: | ||
Net cash used in operating activities (Note 19) | $ (2,679) | $ (475) |
Cash flows from (used in) investing activities: | ||
Proceeds from sale of assets | 12 | |
Acquisitions of property, plant and equipment | (5) | (24) |
Net cash from (used in) investing activities | 7 | (24) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock, net of issuance costs | 701 | |
Net cash from financing activities | 701 | |
Net decrease in cash and cash equivalents | (1,971) | (499) |
Cash and cash equivalents, beginning of period | 3,972 | 12,229 |
Cash and cash equivalents, end of period | $ 2,001 | $ 11,730 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Scenario, Previously Reported [Member] Common Stock [Member] | Scenario, Previously Reported [Member] Additional Paid-in Capital [Member] | Scenario, Previously Reported [Member] Accumulated Deficit [Member] | Scenario, Previously Reported [Member] | Revision of Prior Period Error Correction Adjustment Accumulated Deficit [Member] | Revision of Prior Period Error Correction Adjustment | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Total |
Increase (Decrease) in Stockholders' Equity | ||||||||||
Adjustment related to correction of immaterial error (Note 4) | $ (93) | $ (93) | ||||||||
Balance at Dec. 31, 2021 | $ 1,628 | $ 540,518 | $ (527,961) | $ 14,185 | $ 1,628 | $ 540,518 | $ (528,054) | $ 14,092 | ||
Balance (in shares) at Dec. 31, 2021 | 162,804,612 | 162,804,612 | ||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Stock compensation accrued (Note 16) | 149 | 149 | ||||||||
KELTIP shares issued net of shares relinquished to cover withholding taxes (Note 16) | $ 11 | (240) | (229) | |||||||
KELTIP shares issued net of shares relinquished to cover withholding taxes (Note 16) (in shares) | 1,123,380 | |||||||||
Net loss | (316) | (316) | ||||||||
Balance at Mar. 31, 2022 | $ 1,639 | 540,427 | (528,370) | 13,696 | ||||||
Balance (in shares) at Mar. 31, 2022 | 163,927,992 | |||||||||
Balance at Dec. 31, 2022 | $ 1,703 | 542,737 | (537,960) | 6,480 | ||||||
Balance (in shares) at Dec. 31, 2022 | 170,258,853 | |||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Stock compensation accrued (Note 16) | 189 | 189 | ||||||||
Shares issued under the at-the-market offering agreement, net (Note 16) | $ 27 | 651 | 678 | |||||||
Shares issued under the at-the-market offering agreement, net (Note 16) (in shares) | 2,749,976 | |||||||||
Net loss | (3,266) | (3,266) | ||||||||
Balance at Mar. 31, 2023 | $ 1,730 | $ 543,577 | $ (541,226) | $ 4,081 | ||||||
Balance (in shares) at Mar. 31, 2023 | 173,008,829 |
Basis of Preparation of Financi
Basis of Preparation of Financial Statements and Nature of Operations | 3 Months Ended |
Mar. 31, 2023 | |
Basis of Preparation of Financial Statements and Nature of Operations | |
Basis of Preparation of Financial Statements and Nature of Operations | 1. Basis of Preparation of Financial Statements and ature of Operations Golden Minerals Company (the “Company”), a Delaware corporation, has prepared these unaudited interim condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States (“GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”). The interim condensed consolidated financial statements do not include all disclosures required by GAAP for annual financial statements, but in the opinion of management, include all adjustments necessary for a fair presentation. Certain prior period amounts may have been reclassified to conform to current classifications. Interim results are not necessarily indicative of results for a full year; accordingly, these interim financial statements should be read in conjunction with the annual financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, and filed with the SEC on March 22, 2023. The Company is a mining company, holding a 100% interest in the Rodeo property in Durango State, Mexico (the “Rodeo Property”), a 100% interest in the Velardeña and Chicago precious metals mining properties and associated oxide and sulfide processing plants in the state of Durango, Mexico (the “Velardeña Properties”), a 100% interest in the El Quevar advanced exploration silver property in the province of Salta, Argentina, which is subject to the terms of the April 9, 2020 earn-in agreement (the “Earn-in Agreement”) pursuant to which Barrick Gold Corporation (“Barrick”) has the option to earn a 70% interest in the El Quevar project (see Note 9), and a diversified portfolio of precious metals and other mineral exploration properties located primarily in or near historical precious metals producing regions of Mexico, Argentina and Nevada. The Rodeo Property, Velardeña Properties, the Yoquivo property and the El Quevar advanced exploration property are the Company’s only material properties. We are concluding mining operations at the Rodeo Property, and we are engaged in further studies of a potential restart plan for Velardeña. We continue to evaluate and search for mining opportunities in North America (including Mexico) with near-term prospects of mining, and particularly for properties within reasonable haulage distances of our Velardeña Properties. We are also focused on advancing our Yoquivo exploration property in Mexico, and through the Earn-In Agreement with Barrick, our El Quevar exploration property in Argentina. We are advancing additional selected properties in our portfolio of approximately 12 properties, located in Mexico, Nevada and Argentina. We are reviewing strategic opportunities, focusing primarily on development or operating properties in North America, including Mexico. The Company is considered an exploration stage issuer under the criteria set forth by the SEC under Regulation S-K subpart 1300 (“S-K 1300”) as the Company has not yet demonstrated the existence of mineral reserves at any of the Company’s properties. As a result, and in accordance with generally accepted accounting principles for exploration stage companies, all expenditures for exploration and evaluation of the Company’s properties are expensed as incurred. As such, the Company’s financial statements may not be comparable to the financial statements of mining companies that have proven and probable mineral reserves. Such companies would typically capitalize certain development costs including infrastructure development and mining activities to access the ore. The capitalized costs would be amortized on a units-of-production basis as reserves are mined. The amortized costs are typically allocated to inventory and eventually to cost of sales as the inventories are sold. As the Company does not have proven and probable mineral reserves, substantially all expenditures at the Company’s Rodeo Property and the Velardeña Properties for mine construction activity, as well as operating costs associated with the mill facilities, and for items that do not have a readily identifiable market value apart from the mineralized material, have been expensed as incurred. Such costs are charged to cost of metals sold or project expense during the period depending on the nature of the costs. Certain costs may be reflected in inventories prior to the sale of the product. The Company cannot be certain that any deposits at any of its properties will ever be confirmed or converted into S-K 1300 compliant “reserves”. |
Liquidity, Capital Resources an
Liquidity, Capital Resources and Going Concern | 3 Months Ended |
Mar. 31, 2023 | |
Liquidity, Capital Resources and Going Concern | |
Liquidity, Capital Resources and Going Concern | 2. Liquidity, Capital Resources and Going Concern Our forecasted expenditures during the twelve months ending March 31, 2024, excluding Rodeo and Velardeña cost of metals sold, which is included in our forecast of net operating margin discussed below, total approximately $7.6 million. These forecasted expenditures include: (i) exploration expenses of $2.1 million, (ii) Velardeña care and maintenance costs of $0.3 million, (iii) El Quevar spending (net of Barrick reimbursements) of $0.3 million and (iv) administrative expense, including Torreon G&A of $4.9 million. The actual amount of cash expenditures that we incur during the twelve-month period ending March 31, 2024 may vary significantly from the amounts specified above and will depend on a number of factors, including variations in the anticipated administrative costs, care and maintenance costs at the Velardeña Properties or at El Quevar, and costs for continued exploration, project assessment, and advancement of our other exploration properties. We do not currently have sufficient resources to meet our expected cash needs during the twelve months ended March 31, 2024. At March 31, 2023, we had cash resources of approximately $2.0 million. The forecasted net operating margin from the Rodeo Property during the twelve-month period is expected to be between $0.0 million $0.5 million. The forecasted net operating margin from the Velardeña Properties during the twelve-month period is expected to be between $5.0 million and $5.5 million. Net operating margin is defined as revenue from the sale of metals less the cost of metals sold. Our estimate for Rodeo assumes gold prices per ounce during the period of between $1,950 and $1,990 and silver prices per ounce of $25.00. Our estimate for Velardeña assumes gold prices average $1,900 per ounce and silver prices average $22.50 per ounce. The actual amount that we receive in net operating margin from both Rodeo and Velardeña during the period may vary significantly from the amounts specified above due to, among other things: (i) unanticipated variations in grade, (ii) unexpected challenges associated with our proposed mining plans, (iii) decreases in commodity prices or the prices paid by our concentrate purchasers below those used in calculating the estimates shown above, (iv) variations in expected recoveries, (v) increases in operating costs above those used in calculating the estimates shown above, or (vi) interruptions in mining. There is no assurance that we will be successful in collecting the anticipated cash receipts described above. Specifically, the anticipated net operating margin from the Velardeña Properties is not based on the results of a full feasibility study. While we believe our internal estimates are realistic, the lack of a full feasibility study may increase the uncertainty associated with our estimates. In addition, we expect to collect approximately $1.5 million in VAT accounts receivable from the Mexican government; however, it is possible that those amounts may be delayed. At April 30, 2023, our aggregate cash and cash equivalents totaled approximately $2.0 million. In order to cover forecasted expenditures, we need to raise additional cash in the near-term, whether through the sale of non-core assets or equity financing, including the use of our ATM program. In the absence of sufficient asset sales, equity financing or other external funding the Company’s cash balance is expected to be depleted near the end of the second quarter of 2023. In that event, the Company may be forced to liquidate its business. The consolidated financial statements have been prepared on a going concern basis under which an entity is considered to be able to realize its assets and satisfy its liabilities in the normal course of business. However, as noted above, our continuing long-term operations will be dependent upon our ability to secure sufficient funding to generate future profitable operations. The underlying value and recoverability of the amounts shown as property, plant and equipment in our consolidated financial statements are dependent on our ability to continue to generate positive cash flows from operations and to continue to fund exploration activities that would lead to additional profitable mining and processing activities or to generate proceeds from the disposition of property, plant and equipment. The ability of the Company to maintain a positive cash balance for a period of twelve months beyond the filing date of this, first quarter 2023 10-Q, is dependent upon its ability to generate sufficient cash flow from operations, collect VAT receivable from the Mexican government, reduce expenses, sell non-core assets, and raise sufficient funds through the ATM program and other equity sources. There can be no assurance the Company will be successful in generating sufficient funds from these sources to maintain liquidity throughout the twelve-month period. These material uncertainties cast significant doubt on the Company’s ability to continue as a going concern. Therefore, the Company cannot conclude that substantial doubt does not exist as to the Company’s ability to continue as a going concern for the twelve months following the filing date of the first quarter 2023 10-Q. The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets or liabilities which might be necessary should the Company not continue as a going concern. |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2023 | |
New Accounting Pronouncements | |
New Accounting Pronouncements | 3. New Accounting Pronouncements There were no new accounting pronouncements issued during 2023 that would affect the Company or have a material impact on its consolidated financial position or results of operations. |
Correction of Immaterial Error
Correction of Immaterial Error | 3 Months Ended |
Mar. 31, 2023 | |
Correction of Immaterial Error | |
Correction of Immaterial Error | 4. Correction of Immaterial Error In the first quarter of 2022, the Company became aware that at December 31, 2021, it had failed to properly record a royalty tax payable in Mexico related to its Rodeo operations. The effect of correcting this error was to reduce beginning retained earnings by $93,000 at January 1, 2022, as reflected in the accompanying Condensed Consolidated Statements of Changes in Equity. The Company evaluated the materiality of the error described above from a qualitative and quantitative perspective. Based on such evaluation, the Company concluded that while the accumulation of the error was significant to the three months ended March 31, 2022, the correction would not be material to results of operations for the period ended December 31, 2021, nor did it have an effect on the trend of financial results, taking into account the requirements of SEC Staff Accounting Bulletin No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements (“SAB 108”). |
Cash and Cash Equivalents and I
Cash and Cash Equivalents and Investments | 3 Months Ended |
Mar. 31, 2023 | |
Cash and Cash Equivalents and Investments | |
Cash and Cash Equivalents and Investments | 5. Cash and Cash Equivalents and Investments Cash and Cash Equivalents Of the $2.0 million reported as “Cash and cash equivalents” on the Condensed Consolidated Balance Sheet at March 31, 2023, the Company had approximately $153,000 that was unavailable for use due to a court order freezing the bank accounts of one of the Company’s subsidiaries in Mexico related to a lawsuit, as further described in Note 20. The restrictions imposed on the subsidiary’s bank accounts do not impact the Company’s ability to operate the Rodeo mine, which is held through a different Mexico subsidiary, or to continue with the Company’s evaluation plans for a potential Velardeña mine restart or move forward with any of the Company’s other exploration programs in Mexico. The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Short-Term Investments Short-term investments include investments with maturities greater than three months, but not exceeding 12 months, or highly liquid investments with maturities greater than 12 months that the Company intends to liquidate during the next 12 months for working capital needs. The following tables summarize the Company's short-term investments: Estimated Carrying March 31, 2023 Cost Fair Value Value (in Short-term investments: Trading securities $ 59 $ 12 $ 12 Total trading securities 59 12 12 Total short-term investments $ 59 $ 12 $ 12 December 31, 2022 Short-term investments: Trading securities $ 59 $ 20 $ 20 Total trading securities 59 20 20 Total short-term investments $ 59 $ 20 $ 20 Investment in Fabled The short-term investments at March 31, 2023, and December 31, 2022 consist of 1,000,000 common shares of Fabled Silver Gold Corp. (“Fabled”) and 200,000 common shares of Fabled Copper Corp. Fabled is a junior mining company that entered into an option agreement with the Company to acquire the Company’s option to earn a 100% interest in the Santa Maria mining claims located in Chihuahua, Mexico (see Note 9). The common shares were issued to the Company as partial consideration per the terms of the option agreement. The Fabled Copper Corp. shares were received in a spin-off of assets from Fabled that occurred on December 21, 2020, to which all existing shareholders of Fabled were entitled. Long-Term Investments Investments in equity securities are generally measured at fair value. Gains and losses for equity securities resulting from changes in fair value are recognized in current earnings. If an equity security does not have a readily determinable fair value, the Company may elect to measure the security at its cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment in the same issuer. At the end of each reporting period, the Company reassesses whether an equity investment security without a readily determinable fair value qualifies to be measured at cost less impairment, considers whether impairment indicators exist to evaluate if an equity investment security is impaired and, if so, records an impairment loss. Investment in Golden Gryphon Explorations Inc. Long-term investments at March 31, 2023, consist of approximately 1,500,000 shares of Golden Gryphon Explorations Inc. (“GGE”). In 2019, the Company entered into an earn-in agreement with GGE for the Sand Canyon project located in northwestern Nevada. In August 2022, pursuant to the second amendment to the earn-in agreement by which the earn-in period was extended an additional year, the Company purchased approximately 1,500,000 shares of GGE’s common stock for an aggregate purchase price of $225,000. For a description of the earn-in agreement, see “Exploration Properties - Sand Canyon” in our Annual Report Form 10-K for the year ended December 31, 2022. The GGE investment is accounted for at cost less impairment pursuant to ASC topic 321 as there is no ready market for the shares and it is recorded as non-current investments on the Condensed Consolidated Balance Sheets. The Company concluded it was impractical to estimate fair value due to the absence of a public market for the stock. The Company identified no events or changes in circumstances that might have had a significant adverse effect on the carrying value of the investment and have therefore not recorded any impairment against the asset. Credit Risk The Company invests substantially all of its excess cash with high credit-quality financial institutions or in U.S. government or debt securities. Credit risk is the risk that a third party might fail to fulfill its performance obligations under the terms of a financial instrument. For cash and equivalents and investments, credit risk represents the carrying amount on the balance sheet. The Company mitigates credit risk for cash and equivalents and investments by placing its funds and investments with high credit-quality financial institutions, limiting the amount of exposure to each of the financial institutions, monitoring the financial condition of the financial institutions and investing only in government and corporate securities rated “investment grade” or better. The Company invests with financial institutions that maintain a net worth of no less than $1 billion and are members in good standing with the Securities Investor Protection Corporation. |
Prepaid Expenses and Other Asse
Prepaid Expenses and Other Assets | 3 Months Ended |
Mar. 31, 2023 | |
Prepaid Expenses and Other Assets | |
Prepaid Expenses and Other Assets | 6. Prepaid Expenses and Other Assets Prepaid expenses and other current assets consist of the following: March 31, December 31, 2023 2022 (in thousands) Prepaid insurance $ 483 $ 488 Current portion of deferred offering costs 21 45 Recoupable deposits and other 492 609 $ 996 $ 1,142 The current portion of deferred offering costs is associated with the ATM Agreement (see Note 16). Recoupable deposits and other at March 31, 2023, and at December 31, 2022, includes a receivable from Barrick for reimbursement of costs of approximately $74,000 and $196,000, respectively, related to the Earn-in Agreement (see Note 9). |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2023 | |
Inventories | |
Inventories | 7. Inventories Inventories at the Velardeña Properties were as follows: March 31, December 31, 2023 2022 (in thousands) Doré inventory $ 237 $ 230 In-process inventory 673 572 Material and supplies 580 569 $ 1,490 $ 1,371 Doré and in-process inventories, recorded at book value, include approximately $29,000 and $28,000 of capitalized depreciation and amortization at March 31, 2023, and December 31, 2022, respectively. Doré inventory at March 31, 2023 consists of 126 payable ounces of gold and 818 payable ounces of silver. Doré inventory at December 31, 2022 consists of 157 payable ounces of gold and 652 payable ounces of silver. The materials and supplies inventories are primarily related to the Rodeo operation and are reduced by a $0.3 million obsolescence reserve at March 31, 2023, and December 31, 2022. |
Value Added Tax Receivable, Net
Value Added Tax Receivable, Net | 3 Months Ended |
Mar. 31, 2023 | |
Value Added Tax Receivable, Net | |
Value Added Tax Receivable, Net | 8. Value Added Tax Receivable, Net At March 31, 2023, the Company recorded a net value added tax (“VAT”) paid in Mexico of $2.3 million related to the Velardeña Properties and the Rodeo operation, as a recoverable asset, which appears in “Value added tax receivable, net” on the Condensed Consolidated Balance Sheets. Mexico law allows for certain VAT payments to be recovered through ongoing applications for refunds. The Company expects that the current amounts will be recovered within a one-year period. At March 31, 2023, the Company recorded approximately $687,000 of VAT payable as a reduction to the VAT receivable in Mexico. At December 31, 2022, the Company had recorded approximately $1.5 million of VAT receivable. The Company has also paid VAT in Mexico as well as other countries, primarily related to exploration projects, which has been charged to expense as incurred because of the uncertainty of recoverability. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 3 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment, Net | |
Property, Plant and Equipment, Net | 9. Property, Plant and Equipment, Net March 31, December 31, 2023 2022 (in thousands) Mineral properties $ 9,353 $ 9,353 Exploration properties 2,418 2,418 Royalty properties 200 200 Buildings 3,808 3,808 Mining equipment and machinery 17,074 17,127 Other furniture and equipment 1,377 1,355 Asset retirement cost 1,157 1,157 35,387 35,418 Less: Accumulated depreciation and amortization (29,104) (29,002) $ 6,283 $ 6,416 El Quevar Earn-In Agreement At March 31, 2023, Barrick has continued with exploration activities, per the terms of the Earn-in Agreement, at the Company’s El Quevar project located in the Salta Province of Argentina. As of December 31, 2021, Barrick had met the $1 million in work expenditures that would permit them to withdraw from the Earn-in Agreement. Sale of Santa Maria Property The Company recorded a $1.5 million payment it received from Fabled in December 2021 to “ Deferred revenue On December 19, 2022, the Option Agreement was amended to reschedule the remaining $2.0 million payment into eight quarterly payments of $250,000 from January 31, 2023 through September 30, 2024. Fabled failed to make the payment due on January 31, 2023. The Company issued a notice of default under the Option Agreement to Fabled and the property has reverted to the Company. The carrying value of Santa Maria as of March 31, 2023, and December 31, 2022, is zero. |
Other Long-Term Assets
Other Long-Term Assets | 3 Months Ended |
Mar. 31, 2023 | |
Other Long-Term Assets | |
Other Long-Term Assets | 10. Other Long-Term Assets Other long-term assets consist of right of use assets, and at March 31, 2023, include approximately $232,000 related to certain office leases. The right of use assets at December 31, 2022, include approximately $263,000 related to certain office leases and $70,000 related to a mining equipment lease at our Rodeo Property. In December 2020, the Company’s wholly-owned subsidiary, Minera de Cordilleras S. de R.L. de C.V., entered into an agreement with Triturados del Guadiana, S.A. de C.V. (“Trigusa”), whereby Trigusa will carry out mining activities at the Rodeo Property. Per the terms of the mining agreement, Trigusa provided services for the 27-month period beginning in December 2020 and ending March 31, 2023. The Company determined that the mining agreement contained an embedded lease, relating to the mining equipment provided by Trigusa, per the guidance of ASU 2016-02 and Topic 842. The Company did not elect the practical expedient permitting the combination of lease and non-lease components of the mining agreement. The Company recorded a right of use asset and a lease liability Lease liabilities are included in “Other liabilities”, short term and long term (see Note 13), in the Company’s Condensed Consolidated Balance Sheets at March 31, 2023, and December 31, 2022. |
Accounts Payable and Other Accr
Accounts Payable and Other Accrued Liabilities | 3 Months Ended |
Mar. 31, 2023 | |
Accounts Payable and Other Accrued Liabilities | |
Accounts Payable and Other Accrued Liabilities | 11. Accounts Payable and Other Accrued Liabilities The Company’s accounts payable and other accrued liabilities consist of the following: March 31, December 31, 2023 2022 (in thousands) Accounts payable and accruals $ 3,326 $ 2,206 Accrued employee compensation and benefits 1,532 1,478 Income taxes payable (Note 15) 76 25 $ 4,934 $ 3,709 March 31, 2023 Accounts payable and accruals at March 31, 2023, are primarily related to amounts due to contractors and suppliers in the amounts of $2.6 million related to the Company’s Velardeña and Rodeo properties and $0.7 million related to corporate administrative and exploration activities. Accrued employee compensation and benefits at March 31, 2023, consist of $0.4 million of accrued vacation payable and $1.1 million related to withholding taxes and benefits payable. Included in the $1.5 million of accrued employee compensation and benefits is $1.3 million related to activities at the Velardeña Properties and Rodeo Property. December 31, 2022 Accounts payable and accruals at December 31, 2022, are primarily related to amounts due to contractors and suppliers in the amounts of $1.8 million related to the Company’s Velardeña and Rodeo properties and $0.4 million related to corporate administrative and exploration activities. Accrued employee compensation and benefits at December 31, 2022, consist of $0.4 million of accrued vacation payable and $1.1 million related to withholding taxes and benefits payable. Included in the $1.5 million of accrued employee compensation and benefits is $1.2 million related to activities at the Velardeña Properties and Rodeo Property . |
Asset Retirement Obligation and
Asset Retirement Obligation and Reclamation Liabilities | 3 Months Ended |
Mar. 31, 2023 | |
Asset Retirement Obligation and Reclamation Liabilities | |
Asset Retirement and Reclamation Liabilities | 12. Asset Retirement and Reclamation Liabilities In 2012, the Company retained the services of a mining engineering firm to prepare a detailed closure plan for reclamation activity at the Velardeña Properties. The plan was completed during the second quarter of 2012 and indicated that the Company had an ARO and offsetting ARC of approximately $1.9 million. The original ARC had been fully amortized or written off by the end of December 31, 2015. The ARO has been adjusted since 2012 for changes in assumptions related to inflation factors and the timing of future expenditures used in the determination of future cash flows, which previously contemplated that reclamation activities could begin as early as 2023 following the completion of mining at the Rodeo Property. In the fourth quarter of 2021, due to the operating success at Rodeo and the potential of a restart of operations at the Velardeña mine based on recent technical studies at the time and an updated PEA that would further delay the start of any reclamation activity, the Company retained the services of an environmental consultant to review the closure plan to determine the appropriateness of the scope and cost estimates used in the calculation of the ARO. The consultant confirmed the adequacy of the scope of the closure plan and provided certain adjustments to cost estimates. In addition, the timing for the incurrence of reclamation activity was extended approximately 7 years to 2030 to take into account the likelihood of a restart of operations at the Velardeña mine that would further delay the start of any reclamation activity. In late 2022, the Company determined that the restart of the Velardeña Properties would be deferred one year, which would in turn defer the beginning of the reclamation activity assumption by one year to 2031. The Company will continue to accrue additional estimated ARO amounts based on the closure plan and as activities requiring future reclamation and remediation occur. The following table summarizes activity in the Velardeña Properties ARO: Quarter Ended March 31, 2023 2022 (in thousands) Beginning balance $ 3,993 $ 3,561 Changes in estimates, and other (6) — Accretion expense 73 70 Ending balance $ 4,060 $ 3,631 The change in estimate of the ARO recorded is due to a combination of changes in assumptions related to the timing of future expenditures, the change in inflation assumptions, and the change in the discount rate. |
Other Liabilities
Other Liabilities | 3 Months Ended |
Mar. 31, 2023 | |
Other Liabilities | |
Other Liabilities | 13. Other Liabilities Other Current Liabilities March 31, December 31, 2023 2022 (in thousands) Premium financing $ 248 $ 406 Office lease liability 159 164 Mining equipment lease liability — 70 $ 407 $ 640 The premium financing at March 31, 2023, consists of the remaining balance, plus accrued interest, related to premiums payable for the Company’s directors and officers insurance and general liability insurance. In November 2022, the Company financed approximately $445,000 of its insurance premium. The premium is payable in eleven equal payments at an interest rate of 7.0% per annum. At March 31, 2023, the remaining balance, plus accrued interest, was approximately $246,000. The premium financing at December 31, 2022, consists of the remaining balance, plus accrued interest, related to premiums payable for the Company’s directors and officers, and general liability insurance. In November 2022, the Company financed approximately $445,000 of its insurance premium. The premium is payable in eleven equal payments at an interest rate of 7.0% per annum. At December 31, 2022, the remaining balance, plus accrued interest, was approximately $406,000. The office lease liability is related to lease liabilities for office space at the Company’s principal headquarters in Golden, Colorado and in Mexico and Argentina (see Note 10). The mining equipment lease liability is related to equipment used by the contract miner at our Rodeo Property (see Note 10). Other Long-Term Liabilities Other long-term liabilities of approximately $100,000 for the period ended March 31, 2023, are primarily related to lease liabilities for office space at the Company’s principal headquarters in Golden, Colorado and in Mexico and Argentina (see Note 10). Other long-term liabilities of approximately $122,000 for the period ended December 31, 2022, are primarily related to lease liabilities for office space at the Company’s principal headquarters in Golden, Colorado and in Mexico and Argentina (see Note 10). |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Measurements | |
Fair Value Measurements | 14. Fair Value Measurements Financial assets and liabilities and nonfinancial assets and liabilities are measured at fair value on a recurring basis under a framework of a fair value hierarchy which prioritizes the inputs into valuation techniques used to measure fair value into three broad levels. This hierarchy gives the highest priority to quoted prices (unadjusted) in active markets and the lowest priority to unobservable inputs. Further, financial assets and liabilities should be classified by level in their entirety based upon the lowest level of input that was significant to the fair value measurement. The three levels of the fair value hierarchy per ASC 820 are as follows: Level 1: Level 2: Level 3: The following table summarizes the Company’s financial assets and liabilities measured on a recurring basis at fair value by respective level of the fair value hierarchy: Level 1 Level 2 Level 3 Total (in thousands) At March 31, 2023 Assets: Cash and cash equivalents $ 2,001 $ — $ — $ 2,001 Short-term investments 12 — — 12 $ 2,013 $ — $ — $ 2,013 At December 31, 2022 Assets: Cash and cash equivalents $ 3,972 $ — $ — $ 3,972 Short-term investments 20 — — 20 $ 3,992 $ — $ — $ 3,992 The Company’s cash equivalents, comprised principally of U.S. treasury securities, are classified within Level 1 of the fair value hierarchy. The Company’s short-term investments consist of the 1,000,000 shares of common stock of Fabled and 200,000 shares of Fabled Copper Corp. shares and are classified within Level 1 of the fair value hierarchy (see Note 5). At March 31, 2023, and December 31, 2022, the Company did not have any financial assets or liabilities classified within Level 2 or Level 3 of the fair value hierarchy. Non-recurring Fair Value Measurements The Company recorded a change in estimate to its ARO as of March 31, 2023, of approximately $6,000 (see Note 12), reflecting a change in the fair value of the ARO primarily as the result of changes in assumptions related to the amount and timing of future expenditures used in the determination of future cash flows, following the guidance of ASC Topic 410. The fair value analysis was performed internally by the Company. The valuation falls within Level 3 of the fair value hierarchy. No other non-recurring fair value adjustments to liabilities or long-lived assets were recorded during the three months ended March 31, 2023, and 2022. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Taxes | |
Income Taxes | 15. Income Taxes The Company accounts for income taxes in accordance with the provisions of ASC 740, “Income Taxes” (“ASC 740”), on a tax jurisdictional basis. In accordance with ASC 740, the interim provision for taxes was calculated by using the estimated annual effective tax rate applied to the year-to-date income or losses on a jurisdictional basis. Although the Company has generated ordinary losses on a year-to-date basis, the Company has projected taxable income by year end in certain tax jurisdictions, for which an annual effective tax rate has been calculated. For the three months ended March 31, 2023, the Company recognized approximately $51,000 of income tax expense. In accordance with ASC 740, the Company presents deferred tax assets net of its deferred tax liabilities on a tax jurisdictional basis on its Condensed Consolidated Balance Sheets. As of March 31, 2023, and December 31, 2022, the Company had no deferred tax assets and no deferred tax liability on the Condensed Consolidated Balance Sheets due to a valuation allowance offsetting the net deferred tax assets of the Company. The Company, a Delaware corporation, and its subsidiaries file tax returns in the United States and in various foreign jurisdictions. The tax rules and regulations in these countries are highly complex and subject to interpretation. The Company’s income tax returns are subject to examination by the relevant taxing authorities and in connection with such examinations, disputes can arise with the taxing authorities over the interpretation or application of certain tax rules within the country involved. In accordance with ASC 740, the Company identifies and evaluates uncertain tax positions, and recognizes the impact of uncertain tax positions for which there is less than a more-likely-than-not probability of the position being upheld upon review by the relevant taxing authority. Such positions are deemed to be “unrecognized tax benefits” which require additional disclosure and recognition of a liability within the financial statements. The Company had no unrecognized tax benefits at March 31, 2023, or December 31, 2022. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2023 | |
Equity | |
Equity | 16. Equity At the Market Offering Agreement In December 2016, the Company entered into an at-the-market offering agreement (as amended from time to time, the “ATM Agreement”) with H. C. Wainwright & Co., LLC (“Wainwright”), under which the Company may, from time to time, issue and sell shares of the Company’s common stock through Wainwright as sales manager in an at-the-market offering under a prospectus supplement for aggregate sales proceeds of up to $5.0 million (the “ATM Program”) or a maximum of 10 million shares. On September 29, 2017, the Company entered into an amendment to the ATM Agreement with Wainwright to reflect a new registration statement on Form S-3 (File No. 333-220461) under which shares of the Company’s common stock may be sold under the ATM Program. On November 23, 2018, the Company entered into a second amendment of the ATM Agreement extending the agreement until the earlier of December 20, 2020, or the date that the ATM Agreement is terminated in accordance with the terms therein. On December 11, 2020, the Company entered into a third amendment of the ATM Agreement further extending the agreement so that it will remain in full force and effect until such time as the ATM Agreement is terminated in accordance with certain other terms therein or upon mutual agreement by the parties, and to reflect a new registration statement on Form S-3 (No. 333-249218). On March 29, 2023, the Company filed a Prospectus Supplement increasing the total amount available to be sold under the ATM to $10.0 million in addition to the amounts previously sold. Under the ATM, the common stock is distributed at the market prices prevailing at the time of sale. As a result, prices of the common stock sold under the ATM Program may vary between purchasers and during the period of distribution. Further, on March 29, 2023, the Company entered into a fourth amendment of the ATM Agreement which provides that Wainwright will be entitled to compensation for its services at a commission rate of up to 3.0% of the gross sales price per share of common stock sold under the ATM Agreement. During the three months ended March 31, 2023, the Company sold an aggregate of 2,749,976 shares of common stock under the ATM Program at an average price of $0.27 per share of common stock for net proceeds, after commissions and fees, of approximately $701,000. Approximately $23,000 of deferred ATM Program costs were amortized during the quarter, and at March 31, 2023, there was a remaining balance of $21,000 of the current portion of deferred ATM Program costs, recorded in “Prepaid expenses and other assets” on the Consolidated Balance Sheet (see Note 6). During the three months ended March 31, 2022, the Company did not sell shares of common stock under the ATM Program. At March 31, 2022, there was a remaining balance of $70,000 of deferred ATM Program costs, recorded in “Prepaid expenses and other assets” on the Condensed Consolidated Balance Sheets. As of March 31, 2023, there is approximately $10.0 million remaining available for issuance under the ATM Program based on a prospectus supplement filed with SEC on March 29, 2023. Equity Incentive Plans Under the Company’s Amended and Restated 2009 Equity Incentive Plan (the “Equity Plan”) awards of the Company’s common stock may be made to officers, directors, employees, consultants and agents of the Company and its subsidiaries. The Company recognizes stock-based compensation costs using a graded vesting attribution method whereby costs are recognized over the requisite service period for each separately vesting portion of the award. Restricted Stock Grants The following table summarizes the status and activity of the Company’s restricted stock grants issued under the Equity Plan at March 31, 2023, and the changes during the three months then ended: Weighted Average Grant Date Number of Fair Value Restricted Stock Grants Shares Per Share Outstanding at beginning of period 495,002 $ 0.44 Granted during the period — — Restrictions lifted during the period (33,335) 0.45 Forfeited during the period — — Outstanding at end of period 461,667 $ 0.44 For the three months ended March 31, 2023, the Company recognized approximately $33,000 of stock compensation expense related to the restricted stock grants and restrictions were lifted on the normal vesting of 33,335 shares granted to two employees in prior years. Restricted Stock Units The Equity Plan permits the Company to issue Restricted Stock Units (“RSUs”), which entitle each recipient to receive one unrestricted share of common stock upon termination of the recipient’s employment or board service. Also, pursuant to the Equity Plan, the Company’s Board of Directors adopted the Non-Employee Director’s Deferred Compensation and Equity Award Plan (the “Deferred Compensation Plan”). Pursuant to the Deferred Compensation Plan, non-employee directors, and employees as allowed by the Equity Plan, receive a portion of their compensation in the form of RSUs issued under the Equity Plan. The RSUs generally vest on the first anniversary of the grant. The following table summarizes the status of the RSU grants issued to Directors of the Company under the Equity Plan, including awards to nonemployee directors under the Deferred Compensation Plan, at March 31, 2023, and the changes during the three months then ended: Weighted Average Grant Date Number of Fair Value Restricted Stock Units Shares Per Share Outstanding at beginning of period 5,710,038 $ 0.60 Granted during the period — — Restrictions lifted during the period — — Forfeited during the period — — Outstanding at end of period 5,710,038 $ 0.60 For the three months ended March 31, 2023, the Company recognized approximately $117,000 of stock compensation expense related to the restricted stock units. Key Employee Long-Term Incentive Plan The Company’s 2013 Key Employee Long-Term Incentive Plan (the “KELTIP”) provides for the grant of units (“KELTIP Units”) to certain officers and key employees of the Company, which units will, once vested, entitle such officers and employees to receive an amount, in cash or in Company common stock (such method of settlement at the sole discretion of the Board of Directors) issued pursuant to the Company’s Equity Plan, measured generally by the price of the Company’s common stock on the settlement date. KELTIP Units are not an actual equity interest in the Company and are solely unfunded and unsecured obligations of the Company that are not transferable and do not provide the holder with any stockholder rights. Payment of the settlement amount of vested KELTIP Units is deferred generally until the earlier of a change of control of the Company or the date the grantee ceases to serve as an officer or employee of the Company. The Company intends to settle all the KELTIP Units in common stock of the Company, an option that the Board of Directors holds in its sole discretion so long as sufficient shares remain available under the Equity Plan. As a result, all outstanding KELTIP Units are recorded in equity at March 31, 2023, and December 31, 2022. During the three months ended March 31, 2023, the Company recognized approximately $39,000 of stock compensation expense related to the grants. There were 4,700,000 KELTIP Units outstanding at March 31, 2023, and December 31, 2022. Common Stock Warrants The following table summarizes the status of the Company’s common stock warrants at December 31, 2022, and March 31, 2023, and the changes during the three months then ended: Weighted Number of Average Underlying Exercise Price Common Stock Warrants Shares Per Share Outstanding at December 31, 2022 9,803,846 $ 0.34 Granted during period — — Exercised during period — — Expired during period — — Outstanding at March 31, 2023 9,803,846 $ 0.34 The warrants relate to prior registered offerings and private placements of the Company’s stock. All outstanding warrants are recorded in equity at March 31, 2023, and December 31, 2022, following the guidance established by ASC Topic 815-40. The Company’s warrants allow for the potential settlement in cash if certain extraordinary events are affected by the Company, including a 50% or greater change of control in the Company’s common stock. Since those events have been deemed to be within the Company’s control, the Company continues to apply equity treatment for these warrants. |
Sale of Metals and Related Cost
Sale of Metals and Related Costs | 3 Months Ended |
Mar. 31, 2023 | |
Sale of Metals and Related Costs | |
Sale of Metals and Related Costs | 17. Sale of Metals and Related Costs During the three months ended March 31, 2023, the Company sold gold and silver contained in doré bars related to the Rodeo operation and recorded revenue of approximately $4.2 million and related costs of approximately $4.0 million. The gold and silver contained in the doré bars were sold to one customer, a metals refinery located in the United States. Under the terms of the Company’s agreement with its customer, title passes, and revenue is recognized by the Company when the contractual performance obligations of the parties are completed, generally at the time a provisional or final payment is made. A provisional payment for approximately 95% of the contained gold and silver is made generally within 10 During the three months ended March 31, 2022, the Company sold gold and silver contained in doré bars related to the Rodeo operation and recorded revenue of approximately $7.5 million and related costs of approximately $4.3 million. Costs related to the sale of metal products include direct and indirect costs incurred to mine, process and market the products. |
Interest and Other Income (Expe
Interest and Other Income (Expense), Net | 3 Months Ended |
Mar. 31, 2023 | |
Interest and Other Income (Expense), Net | |
Interest and Other Income (Expense), Net | 18. Interest and Other Income (Expense), Net For the three months ended March 31, 2023, and 2022, the Company recognized a nominal amount of Interest and other income (expense), net |
Cash Flow Information
Cash Flow Information | 3 Months Ended |
Mar. 31, 2023 | |
Cash Flow Information | |
Cash Flow Information | 19. Cash Flow Information The following table reconciles net loss for the period to cash used in operations: Quarter Ended March 31, 2023 2022 (in thousands) Cash flows (used in) from operating activities: Net loss $ (3,266) $ (316) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 99 65 Accretion of asset retirement obligation 73 69 Loss (gain) on trading securities 8 (25) Gain on sale of assets (4) — Stock-based compensation 189 149 Changes in operating assets and liabilities from continuing operations: Increase in inventories, net (88) (331) Increase in value added tax receivable, net (878) (185) Decrease in prepaid expenses and other assets 123 23 Decrease in other long-term assets 101 54 Increase in accounts payable and other accrued liabilities 1,225 600 Decrease in deferred revenue — (374) Decrease in other current liabilities (233) (96) Decrease in reclamation liability (6) — Decrease in other long-term liabilities (22) (108) Net cash used in operating activities $ (2,679) $ (475) The following table sets forth supplemental cash flow information and non-cash transactions: Quarter Ended March 31, 2023 2022 (in thousands) Supplemental disclosure: Interest paid $ 8 $ — Income taxes paid $ — $ 310 Supplemental disclosure of non-cash transactions: Deferred equity offering costs amortized $ 23 $ — Shares withheld for accrued tax withholding $ — $ 229 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies | |
Commitments and Contingencies | 20. Commitments and Contingencies During April 2021, the Company became aware of a lawsuit in Mexico against one of the Company’s Mexican subsidiaries, Minera William, S.A. de C.V. (“Minera William”). The plaintiff in the matter is Unifin Financiera, S.A.B de C.V. (“Unifin”). The lawsuit was assigned to the Fifth Specialized Commercial District Court. In November 2022, the Company was formally served with the complaint in connection with the lawsuit and in December 2022 the Company filed its answer to the complaint. Unifin is alleging that a representative of Minera William signed certain documents in July 2011 purporting to bind Minera William as a guarantor of payment obligations owed by a third party to Unifin in connection with that third party’s acquisition of certain drilling equipment. At the time the documentation was allegedly signed, Minera William was a subsidiary of ECU Silver Mining prior to the Company’s acquisition of ECU in September 2011. As a preemptive measure, Unifin has obtained a preliminary court order freezing Minera William’s bank accounts in Mexico, which has limited the Company’s and Minera William’s ability to access approximately US$153,000 according to current currency exchange rates. Notwithstanding this action, the restrictions imposed on Minera William’s bank accounts do not impact the Company’s ability to operate the Rodeo mine, which is held through a different Mexico subsidiary. Likewise, the action does not impact the Company’s ability to continue with the Company’s evaluation plans for a potential Velardeña mine restart or move forward with any of the Company’s other exploration programs in Mexico. However, because the Velardeña mine and processing plants are held by Minera William, any adverse outcome to the action may have a material impact on our ability to restart production at Velardeña. Unifin is seeking recovery for as much as US$12.5 million. The Company believes there is no basis for this claim. As such, the Company has not accrued an amount for this matter in its Condensed Consolidated Balance Sheets or Statements of Operations as of March 31, 2023. A preliminary hearing was initially scheduled to take place in April 2023 but has now been rescheduled to June 2023. The Company also has certain purchase and lease commitments as set forth in the Company’s Form 10-K for the year ended December 31, 2022. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2023 | |
Segment Information | |
Segment Information | 21. Segment Information The Company’s sole activity is the mining, construction and exploration of mineral properties containing precious metals. The Company’s reportable segments are based on the Company’s revenue-producing activities and cash-consuming activities. The Company reports two segments, one for its revenue-producing activities in Mexico, which includes both the Velardeña Properties and the Rodeo Property, and the other comprised of non-revenue-producing activities, including exploration, construction and general and administrative activities. Intercompany revenue and expense amounts have been eliminated within each segment in order to report on the basis that management uses internally for evaluating segment performance. The financial information relating to the Company’s segments is as follows: Exploration, El Costs Depreciation, Quevar, Velardeña Three Months Ended Applicable Depletion and and Administrative Pre-Tax (gain) Capital March 31, 2023 Revenue to Sales Amortization Expense loss Total Assets Expenditures Mexico Operations $ 4,217 $ 4,046 $ 94 $ 1,176 $ 1,174 $ 8,709 $ — Corporate, Exploration and Other — — 5 1,892 2,041 4,873 — Consolidated $ 4,217 $ 4,046 $ 99 $ 3,068 $ 3,215 $ 13,582 $ — Three Months Ended March 31, 2022 Mexico Operations $ 7,506 $ 4,322 $ 53 $ 1,819 $ (1,683) $ 9,405 $ 23 Corporate, Exploration and Other — — 12 1,772 1,914 14,232 1 Consolidated $ 7,506 $ 4,322 $ 65 $ 3,591 $ 231 $ 23,637 $ 24 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions | |
Related Party Transactions | 22. Related Party Transactions The following sets forth information regarding transactions between the Company (and its subsidiaries) and its officers, directors and significant stockholders. Administrative Services, Lease of Equipment: Beginning in August 2016, the Company began providing limited accounting and other administrative services to Minera Indé, an indirect subsidiary of Sentient. Sentient, through the Sentient executive funds, holds approximately 22% of the Company’s 170.3 million shares of issued and outstanding Exploration expense |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events | |
Subsequent Events | 23. Subsequent Events At the Market Offering Agreement Subsequent to March 31, 2023, the Company sold an aggregate of 4,636,368 shares of common stock under the ATM Program at an average price of $0.24 per share of common stock for net proceeds, after commissions and fees, of approximately $1.1 million. Concentrate Sales Subsequent to March 31, 2023, the Company sold gold-rich pyrite concentrates from the Velardeña property which was produced from ore that had been mined during 2022 and including concentrates that had been produced from test mining in 2021 as a part of the test mining completed while the Company was contemplating the re-opening of the Velardeña Properties. |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
New Accounting Pronouncements | |
New Accounting Pronouncements | There were no new accounting pronouncements issued during 2023 that would affect the Company or have a material impact on its consolidated financial position or results of operations. |
Cash and Cash Equivalents and_2
Cash and Cash Equivalents and Investments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Cash and Cash Equivalents and Investments | |
Schedule of short term-investments | Estimated Carrying March 31, 2023 Cost Fair Value Value (in Short-term investments: Trading securities $ 59 $ 12 $ 12 Total trading securities 59 12 12 Total short-term investments $ 59 $ 12 $ 12 December 31, 2022 Short-term investments: Trading securities $ 59 $ 20 $ 20 Total trading securities 59 20 20 Total short-term investments $ 59 $ 20 $ 20 |
Prepaid Expenses and Other As_2
Prepaid Expenses and Other Assets (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Prepaid Expenses and Other Assets | |
Schedule of prepaid expenses and other current assets | March 31, December 31, 2023 2022 (in thousands) Prepaid insurance $ 483 $ 488 Current portion of deferred offering costs 21 45 Recoupable deposits and other 492 609 $ 996 $ 1,142 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Inventories | |
Schedule of inventories at the Velardea Propertie | March 31, December 31, 2023 2022 (in thousands) Doré inventory $ 237 $ 230 In-process inventory 673 572 Material and supplies 580 569 $ 1,490 $ 1,371 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment, Net | |
Schedule of components of property, plant and equipment | March 31, December 31, 2023 2022 (in thousands) Mineral properties $ 9,353 $ 9,353 Exploration properties 2,418 2,418 Royalty properties 200 200 Buildings 3,808 3,808 Mining equipment and machinery 17,074 17,127 Other furniture and equipment 1,377 1,355 Asset retirement cost 1,157 1,157 35,387 35,418 Less: Accumulated depreciation and amortization (29,104) (29,002) $ 6,283 $ 6,416 |
Accounts Payable and Other Ac_2
Accounts Payable and Other Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Accounts Payable and Other Accrued Liabilities | |
Schedule of accounts payable and other accrued liabilities | March 31, December 31, 2023 2022 (in thousands) Accounts payable and accruals $ 3,326 $ 2,206 Accrued employee compensation and benefits 1,532 1,478 Income taxes payable (Note 15) 76 25 $ 4,934 $ 3,709 |
Asset Retirement Obligation a_2
Asset Retirement Obligation and Reclamation Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Asset Retirement Obligation and Reclamation Liabilities | |
Summary of activity in the Velardena Properties ARO | Quarter Ended March 31, 2023 2022 (in thousands) Beginning balance $ 3,993 $ 3,561 Changes in estimates, and other (6) — Accretion expense 73 70 Ending balance $ 4,060 $ 3,631 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Other Liabilities, Current | |
Schedule of other current liabilities | March 31, December 31, 2023 2022 (in thousands) Premium financing $ 248 $ 406 Office lease liability 159 164 Mining equipment lease liability — 70 $ 407 $ 640 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Measurements | |
Schedule of financial assets and liabilities at fair value | Level 1 Level 2 Level 3 Total (in thousands) At March 31, 2023 Assets: Cash and cash equivalents $ 2,001 $ — $ — $ 2,001 Short-term investments 12 — — 12 $ 2,013 $ — $ — $ 2,013 At December 31, 2022 Assets: Cash and cash equivalents $ 3,972 $ — $ — $ 3,972 Short-term investments 20 — — 20 $ 3,992 $ — $ — $ 3,992 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity | |
Schedule of status of the restricted stock grants issued under the Equity Plan | Weighted Average Grant Date Number of Fair Value Restricted Stock Grants Shares Per Share Outstanding at beginning of period 495,002 $ 0.44 Granted during the period — — Restrictions lifted during the period (33,335) 0.45 Forfeited during the period — — Outstanding at end of period 461,667 $ 0.44 |
Schedule of restricted stock units | Weighted Average Grant Date Number of Fair Value Restricted Stock Units Shares Per Share Outstanding at beginning of period 5,710,038 $ 0.60 Granted during the period — — Restrictions lifted during the period — — Forfeited during the period — — Outstanding at end of period 5,710,038 $ 0.60 |
Summary of the status of the Company's common stock warrants | Weighted Number of Average Underlying Exercise Price Common Stock Warrants Shares Per Share Outstanding at December 31, 2022 9,803,846 $ 0.34 Granted during period — — Exercised during period — — Expired during period — — Outstanding at March 31, 2023 9,803,846 $ 0.34 |
Cash Flow Information (Tables)
Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Cash Flow Information | |
Schedule of reconciliation of net loss for the period to cash used in operations | Quarter Ended March 31, 2023 2022 (in thousands) Cash flows (used in) from operating activities: Net loss $ (3,266) $ (316) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 99 65 Accretion of asset retirement obligation 73 69 Loss (gain) on trading securities 8 (25) Gain on sale of assets (4) — Stock-based compensation 189 149 Changes in operating assets and liabilities from continuing operations: Increase in inventories, net (88) (331) Increase in value added tax receivable, net (878) (185) Decrease in prepaid expenses and other assets 123 23 Decrease in other long-term assets 101 54 Increase in accounts payable and other accrued liabilities 1,225 600 Decrease in deferred revenue — (374) Decrease in other current liabilities (233) (96) Decrease in reclamation liability (6) — Decrease in other long-term liabilities (22) (108) Net cash used in operating activities $ (2,679) $ (475) Quarter Ended March 31, 2023 2022 (in thousands) Supplemental disclosure: Interest paid $ 8 $ — Income taxes paid $ — $ 310 Supplemental disclosure of non-cash transactions: Deferred equity offering costs amortized $ 23 $ — Shares withheld for accrued tax withholding $ — $ 229 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Information | |
Schedule of financial information relating to discontinued operations and continuing operations | Exploration, El Costs Depreciation, Quevar, Velardeña Three Months Ended Applicable Depletion and and Administrative Pre-Tax (gain) Capital March 31, 2023 Revenue to Sales Amortization Expense loss Total Assets Expenditures Mexico Operations $ 4,217 $ 4,046 $ 94 $ 1,176 $ 1,174 $ 8,709 $ — Corporate, Exploration and Other — — 5 1,892 2,041 4,873 — Consolidated $ 4,217 $ 4,046 $ 99 $ 3,068 $ 3,215 $ 13,582 $ — Three Months Ended March 31, 2022 Mexico Operations $ 7,506 $ 4,322 $ 53 $ 1,819 $ (1,683) $ 9,405 $ 23 Corporate, Exploration and Other — — 12 1,772 1,914 14,232 1 Consolidated $ 7,506 $ 4,322 $ 65 $ 3,591 $ 231 $ 23,637 $ 24 |
Basis of Preparation of Finan_2
Basis of Preparation of Financial Statements and Nature of Operations (Details) - property | 3 Months Ended | |
Mar. 31, 2023 | Apr. 09, 2020 | |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||
Number of additional selected properties advanced in portfolio | 12 | |
Rodeo Property | ||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||
Investment ownership percentage | 100% | |
El Quevar Project | ||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||
Investment ownership percentage | 100% | |
Velardena Properties | ||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||
Investment ownership percentage | 100% | |
Barrick Earn-In Agreement | El Quevar Project | ||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||
Investment ownership percentage | 70% |
Liquidity, Capital Resources _2
Liquidity, Capital Resources and Going Concern (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2023 USD ($) $ / oz | Mar. 31, 2022 USD ($) | Mar. 31, 2024 USD ($) | Apr. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||||
Exploration expenditures | $ 1,339 | $ 1,666 | |||
Velardena care and maintenance costs | 247 | 536 | |||
El Quevar spending (net of Barrick reimbursements) | 151 | 117 | |||
Administrative expense | 1,331 | 1,272 | |||
Cash and cash equivalents | 2,001 | $ 3,972 | |||
Net operating margin (loss) | $ (3,235) | $ (303) | |||
Doubt about ability to continue as a going concern | true | ||||
MEXICO | |||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||||
Value Added Tax Expected to be Received | $ 1,500 | ||||
Subsequent Event | |||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||||
Cash and cash equivalents | $ 2,000 | ||||
Rodeo Property | Silver | |||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||||
Expected metals prices | $ / oz | 25 | ||||
Velardena Properties | Gold | |||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||||
Expected metals prices | $ / oz | 1,900 | ||||
Velardena Properties | Silver | |||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||||
Expected metals prices | $ / oz | 22.50 | ||||
Minimum | Rodeo Property | Gold | |||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||||
Expected metals prices | $ / oz | 1,950 | ||||
Minimum | Velardena Properties | |||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||||
Net operating margin (loss) | $ 5,000 | ||||
Maximum | Rodeo Property | Gold | |||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||||
Expected metals prices | $ / oz | 1,990 | ||||
Maximum | Velardena Properties | |||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||||
Net operating margin (loss) | 5,500 | ||||
Scenario, Forecast | |||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||||
Forecasted expenditures, excluding Rodeo cost of metals sold | 7,600 | ||||
Exploration expenditures | 2,100 | ||||
Velardena care and maintenance costs | 300 | ||||
El Quevar spending (net of Barrick reimbursements) | 300 | ||||
Administrative expense | 4,900 | ||||
Scenario, Forecast | Minimum | Rodeo Property | |||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||||
Net operating margin (loss) | 0 | ||||
Scenario, Forecast | Maximum | Rodeo Property | |||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||||
Net operating margin (loss) | $ 500 |
Correction of Immaterial Error
Correction of Immaterial Error (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 | Jan. 01, 2022 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Accumulated deficit | $ (541,226,000) | $ (537,960,000) | |
Revision of Prior Period Error Correction Adjustment | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Accumulated deficit | $ (93,000) |
Cash and Cash Equivalents and_3
Cash and Cash Equivalents and Investments (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Aug. 31, 2022 | Apr. 30, 2021 | Mar. 31, 2023 | Dec. 31, 2022 | |
Cash and Cash Equivalents, at Carrying Value | $ 2,001,000 | $ 3,972,000 | ||
Cash and cash equivalent, frozen bank balance | $ 153,000 | 153,000 | ||
Trading securities, cost | 59,000 | 59,000 | ||
Total short-term investments, cost | 59,000 | 59,000 | ||
Total short-term investments | 12,000 | 20,000 | ||
Long-term Investments | 225,000 | 225,000 | ||
Financial institutions minimum net worth | $ 1,000,000,000 | |||
Golden Gryphon Explorations Inc | ||||
Shares Purchased | 1,500,000 | 1,500,000 | ||
Aggregate Purchase Price | $ 225,000 | |||
Trading securities | ||||
Trading securities, cost | $ 59,000 | $ 59,000 | ||
Sale of Santa Maria Property | Options Agreement | Fabled Copper Corp. | ||||
Consideration Received in Shares | shares | 200,000 | |||
Percentage of interest claims | 100% | |||
Sale of Santa Maria Property | Options Agreement | Fabled Silver Gold Corp. | ||||
Consideration Received in Shares | shares | 1,000,000 | |||
Estimate of Fair Value Measurement | ||||
Trading securities | $ 12,000 | $ 20,000 | ||
Total short-term investments | 12,000 | 20,000 | ||
Estimate of Fair Value Measurement | Trading securities | ||||
Trading securities | 12,000 | 20,000 | ||
Reported Value Measurement | ||||
Trading securities | 12,000 | 20,000 | ||
Total short-term investments | 12,000 | 20,000 | ||
Reported Value Measurement | Trading securities | ||||
Trading securities | $ 12,000 | $ 20,000 |
Prepaid Expenses and Other As_3
Prepaid Expenses and Other Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Prepaid Expenses and Other Assets | ||
Prepaid insurance | $ 483 | $ 488 |
Current portion of deferred offering costs | 21 | 45 |
Recoupable deposits and other | 492 | 609 |
Prepaid expenses and other assets | 996 | 1,142 |
Receivables for reimbursement of costs | $ 74,000 | $ 196,000 |
Inventories (Details)
Inventories (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 USD ($) oz | Dec. 31, 2022 USD ($) oz | |
Inventories, net | $ 1,490,000 | $ 1,371,000 |
Rodeo Project | ||
Dore inventory | 237,000 | 230,000 |
In-process inventory | 673,000 | 572,000 |
Material and supplies | 580,000 | 569,000 |
Inventories, net | 1,490,000 | 1,371,000 |
Capitalized depreciation and amortization | $ 29,000 | $ 28,000 |
Dore inventory gold | oz | 126 | 157 |
Dore inventory silver | oz | 818 | 652 |
Obsolescence allowance | $ 300,000 | $ 300,000 |
Value Added Tax Receivable, N_2
Value Added Tax Receivable, Net (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Value added tax receivable, net (Note 8) | $ 2,343,000 | $ 1,465,000 |
MEXICO | ||
Value added tax receivable, net (Note 8) | 2,300,000 | |
VAT receivables offset against VAT payable | $ 687,000 | $ 1,500,000 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Property, plant and equipment | ||
Property, plant and equipment, gross | $ 35,387 | $ 35,418 |
Less: Accumulated depreciation and amortization | (29,104) | (29,002) |
Property, plant and equipment, net | 6,283 | 6,416 |
Mineral properties | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 9,353 | 9,353 |
Exploration properties | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 2,418 | 2,418 |
Royalty properties | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 200 | 200 |
Buildings | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 3,808 | 3,808 |
Mining equipment and machinery | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 17,074 | 17,127 |
Other furniture and equipment | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 1,377 | 1,355 |
Asset retirement cost | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | $ 1,157 | $ 1,157 |
Property, Plant and Equipment -
Property, Plant and Equipment - Disposals (Details) | 3 Months Ended | 12 Months Ended | ||
Dec. 19, 2022 USD ($) installment | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Property, plant and equipment | ||||
Contract with customer liability | $ 0 | $ 0 | $ 1,500,000 | |
Minimum work expenditures spend to withdraw agreement | $ 1,000,000 | |||
Sale of Santa Maria Property | ||||
Property, plant and equipment | ||||
Carrying value of concessions allowed | $ 0 | $ 0 | ||
Sale of Santa Maria Property | Fabled Copper Corp. | Binding Letter of Intent Agreement | ||||
Property, plant and equipment | ||||
Number of quarterly installments of second year anniversary | installment | 8 | |||
Amount of second year anniversary consideration | $ 250,000 | |||
Second year anniversary consideration | $ 2,000,000 |
Other Long-Term Assets (Details
Other Long-Term Assets (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2020 |
Office Leases | |||
Change in Accounting Principle | |||
Right of use assets | $ 232,000 | $ 263,000 | |
Mining Equipment Lease Property | |||
Change in Accounting Principle | |||
Right of use assets | $ 70,000 | ||
Rodeo Property | |||
Change in Accounting Principle | |||
Term of operating lease | 27 months | ||
Right of use assets | $ 420,000 | ||
Lease liability | $ 420,000 | ||
Future lease payments discount rate | 7% |
Accounts Payable and Other Ac_3
Accounts Payable and Other Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Accounts payable and accruals | $ 3,326 | $ 2,206 |
Accrued employee compensation and benefits | 1,532 | 1,478 |
Income taxes payable (Note 15) | 76 | 25 |
Accounts payable and other accrued liabilities | 4,934 | 3,709 |
Accrued vacation | 400 | 400 |
Withholding taxes and benefits payable | 1,100 | 1,100 |
Velardena Properties | ||
Accounts payable and accruals | 2,600 | 1,800 |
Accrued employee compensation and benefits | 1,300 | 1,200 |
Corporate administrative and exploration | ||
Accounts payable and accruals | $ 700 | $ 400 |
Asset Retirement Obligation a_3
Asset Retirement Obligation and Reclamation Liabilities (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Jun. 30, 2012 | |
Asset retirement and reclamation liabilities | $ 4,060,000 | $ 3,993,000 | |||
Summary of activity in the Velardena Operations ARO | |||||
ARO, Beginning balance | 3,993,000 | ||||
Changes in estimates, and other | (6,000) | ||||
Accretion expense | 73,000 | $ 69,000 | |||
ARO, Ending balance | 4,060,000 | 3,993,000 | |||
Velardena Properties | |||||
Asset retirement and reclamation liabilities | 4,060,000 | 3,631,000 | $ 3,561,000 | $ 3,993,000 | $ 1,900,000 |
Reclamation activity extension term | 7 years | 1 year | |||
Summary of activity in the Velardena Operations ARO | |||||
ARO, Beginning balance | 3,993,000 | 3,561,000 | $ 3,561,000 | ||
Changes in estimates, and other | (6,000) | ||||
Accretion expense | 73,000 | 70,000 | |||
ARO, Ending balance | $ 4,060,000 | $ 3,631,000 | $ 3,561,000 | $ 3,993,000 |
Other Liabilities (Details)
Other Liabilities (Details) | 1 Months Ended | ||
Nov. 30, 2022 USD ($) installment | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Other Current Liabilities | |||
Premium financing | $ 248,000 | $ 406,000 | |
Office lease liability | 159,000 | 164,000 | |
Mining equipment lease liability | 70,000 | ||
Other current liabilities | 407,000 | 640,000 | |
Other long term liabilities | 100,000 | 122,000 | |
Directors and Officers Liability, and General Liability Insurance | |||
Other Current Liabilities | |||
Premium financing | $ 246,000 | $ 406,000 | |
Number of payment | installment | 11 | ||
Premium interest rate | 7% | ||
Insurance premium payable | $ 445,000 |
Fair value measurements (Detail
Fair value measurements (Details) - USD ($) | 3 Months Ended | |||
Dec. 04, 2020 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Fair value measurements | ||||
Changes in estimates, and other | $ (6,000) | |||
Fair value Assumptions | ||||
Fair value adjustments to long lived assets | 0 | $ 0 | ||
Fabled Copper Corp. | Sale, not discontinued operations | Binding Letter of Intent Agreement | ||||
Fair value Assumptions | ||||
Consideration Received in Shares | shares | 1,000,000 | |||
Fair Value, Inputs, Level 1 [Member] | Fabled Copper Corp. | Binding Letter of Intent Agreement | ||||
Fair value Assumptions | ||||
Investment shares held (in shares) | 200,000 | |||
Fair Value, Measurements, Recurring [Member] | ||||
Fair value measurements | ||||
Cash and cash equivalents | 2,001,000 | $ 3,972,000 | ||
Short-term investments | 12,000 | 20,000 | ||
Assets | 2,013,000 | 3,992,000 | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Fair value measurements | ||||
Cash and cash equivalents | 2,001,000 | 3,972,000 | ||
Short-term investments | 12,000 | 20,000 | ||
Assets | $ 2,013,000 | $ 3,992,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Income Taxes | |||
Income taxes (Note 15) | $ (51,000) | $ (85,000) | |
Net deferred tax assets | 0 | $ 0 | |
Net deferred tax liabilities | 0 | 0 | |
Gross unrecognized tax benefits at beginning of period | $ 0 | $ 0 |
Equity - Issue and Conversion (
Equity - Issue and Conversion (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |||
Mar. 29, 2023 | Apr. 30, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2016 | |
Subsequent Event [Member] | |||||
Stock Issued During period Shares New Issues (in shares) | 4,636,368 | ||||
ATM Agreement | |||||
Stock Issued During period Shares New Issues (in shares) | 2,749,976 | ||||
Aggregate value of securities allowed under agreement | $ 10,000,000 | $ 5,000,000 | |||
Sale price (in dollars per shares) | $ 0.27 | ||||
Amortization of deferred cost | $ 23,000 | $ 70,000 | |||
Unamortized deferred cost | 21,000 | ||||
Aggregate securities allowed under agreement (in shares) | 10,000,000 | ||||
Commission rate (as a percent) | 3% | ||||
Common shares available for issuance | $ 10,000,000 | ||||
ATM Agreement | Subsequent Event [Member] | |||||
Share Price | $ 0.24 |
Equity - Non-Option Incentive (
Equity - Non-Option Incentive (Details) | 3 Months Ended | |
Mar. 31, 2023 USD ($) employee $ / shares shares | Mar. 31, 2022 USD ($) | |
Weighted Average Grant Date Fair Value Per Share - Non-option | ||
Compensation expense | $ | $ 189,000 | $ 149,000 |
Restricted Stock [Member] | ||
Number of Shares - Non-option | ||
Outstanding at beginning of year (in shares) | 495,002 | |
Granted during the period (in shares) | ||
Restrictions lifted during the period (in shares) | (33,335) | |
Forfeited during the period (in shares) | ||
Outstanding at end of year (in shares) | 461,667 | |
Weighted Average Grant Date Fair Value Per Share - Non-option | ||
Outstanding at beginning of year (in dollars per share) | $ / shares | $ 0.44 | |
Granted during the period (in dollars per share) | $ / shares | ||
Restrictions lifted during the period (in dollars per share) | $ / shares | 0.45 | |
Forfeited during the period (in dollars per share) | $ / shares | ||
Outstanding at end of year (in dollars per share) | $ / shares | $ 0.44 | |
Restricted Stock [Member] | Employees | ||
Number of Shares - Non-option | ||
Restrictions lifted during the period (in shares) | (33,335) | |
Weighted Average Grant Date Fair Value Per Share - Non-option | ||
Number of employees | employee | 2 | |
Restricted Stock Units (RSUs) [Member] | ||
Number of Shares - Non-option | ||
Outstanding at beginning of year (in shares) | 5,710,038 | |
Restrictions lifted during the period (in shares) | ||
Forfeited during the period (in shares) | ||
Outstanding at end of year (in shares) | 5,710,038 | |
Weighted Average Grant Date Fair Value Per Share - Non-option | ||
Outstanding at beginning of year (in dollars per share) | $ / shares | $ 0.60 | |
Granted during the period (in dollars per share) | $ / shares | ||
Restrictions lifted during the period (in dollars per share) | $ / shares | ||
Forfeited during the period (in dollars per share) | $ / shares | ||
Outstanding at end of year (in dollars per share) | $ / shares | $ 0.60 | |
Number of unrestricted shares Director to receive for vested RSU upon termination from board | 1 | |
Units [Member] | Officers [Member] | ||
Number of Shares - Non-option | ||
Outstanding at beginning of year (in shares) | 4,700,000 | |
Outstanding at end of year (in shares) | 4,700,000 | |
Weighted Average Grant Date Fair Value Per Share - Non-option | ||
Compensation expense | $ | $ 39,000 | |
Equity Incentive Plan [Member] | Restricted Stock [Member] | ||
Weighted Average Grant Date Fair Value Per Share - Non-option | ||
Compensation expense | $ | 33,000 | |
Non Employee Directors Deferred Compensation and Equity Award Plan [Member] | Restricted Stock Units (RSUs) [Member] | ||
Weighted Average Grant Date Fair Value Per Share - Non-option | ||
Compensation expense | $ | $ 117,000 |
Equity - Warrants (Details)
Equity - Warrants (Details) | 3 Months Ended |
Mar. 31, 2023 $ / shares shares | |
Number of Underlying Shares | |
Outstanding, beginning balance (in shares) | shares | 9,803,846 |
Outstanding, end balance (in shares) | shares | 9,803,846 |
Weighted Average Exercise Price Per Share | |
Outstanding, beginning balance (in dollars per share) | $ / shares | $ 0.34 |
Outstanding, end balance (in dollars per share) | $ / shares | $ 0.34 |
Sale of Metals and Related Co_2
Sale of Metals and Related Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 4,217 | $ 7,506 |
Costs Applicable to Sales | $ 4,046 | $ 4,322 |
Percentage of provisional payment for gold and silver | 95% | |
Term of final payment within shipment date | 30 days | |
Minimum [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Provisional payment term of gold and silver | 10 days | |
Maximum [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Provisional payment term of gold and silver | 12 days |
Cash Flow Information (Details)
Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows used in operating activities: | ||
Net loss | $ (3,266) | $ (316) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 99 | 65 |
Accretion of asset retirement obligation | 73 | 69 |
Loss (gain) on trading securities | 8 | (25) |
Gain on sale of assets | (4) | |
Stock-based compensation | 189 | 149 |
Changes in operating assets and liabilities from continuing operations: | ||
Increase in inventories, net | (88) | (331) |
Increase in value added tax receivable, net | (878) | (185) |
Decrease in prepaid expenses and other assets | 123 | 23 |
Decrease in other long-term assets | 101 | 54 |
Increase in accounts payable and other accrued liabilities | 1,225 | 600 |
Decrease in deferred revenue | (374) | |
Decrease in other current liabilities | (233) | (96) |
Decrease in reclamation liability | (6) | |
Decrease in other long-term liabilities | (22) | (108) |
Net cash used in operating activities | $ (2,679) | $ (475) |
Cash Flow Information - Supplem
Cash Flow Information - Supplemental and Non-cash transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash Flow Information | ||
Interest paid | $ 8 | |
Income taxes paid | $ 310 | |
Deferred equity offering costs amortized | $ 23 | |
Shares withheld for accrued tax withholding | $ 229 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | 1 Months Ended | 3 Months Ended |
Apr. 30, 2021 | Mar. 31, 2023 | |
Frozen Bank Account Estimated Value | $ 153,000 | $ 153,000 |
Potential Lawsuit From Unifin Financiera [Member] | Threatened Litigation [Member] | ||
Loss Contingency, Damages Sought, Value | $ 12,500,000 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 USD ($) segment | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Segment Information | |||
Number of reportable segments | segment | 2 | ||
Revenue | $ 4,217 | $ 7,506 | |
Costs Applicable to Sales | (4,046) | (4,322) | |
Depreciation, Depletion and Amortization | 99 | 65 | |
Exploration, El Quevar, Velardena and Administrative Expense | 3,068 | 3,591 | |
Pre-Tax (gain) loss | (3,215) | (231) | |
Total Assets | 13,582 | 23,637 | $ 14,944 |
Capital Expenditures | $ 5 | 24 | |
Mexico Operations | |||
Segment Information | |||
Number of reportable segments | segment | 1 | ||
Revenue | $ 4,217 | 7,506 | |
Costs Applicable to Sales | (4,046) | (4,322) | |
Depreciation, Depletion and Amortization | 94 | 53 | |
Exploration, El Quevar, Velardena and Administrative Expense | 1,176 | 1,819 | |
Pre-Tax (gain) loss | (1,174) | 1,683 | |
Total Assets | 8,709 | 9,405 | |
Capital Expenditures | 23 | ||
Corporate administrative and exploration | |||
Segment Information | |||
Depreciation, Depletion and Amortization | 5 | 12 | |
Exploration, El Quevar, Velardena and Administrative Expense | 1,892 | 1,772 | |
Pre-Tax (gain) loss | (2,041) | (1,914) | |
Total Assets | $ 4,873 | 14,232 | |
Capital Expenditures | $ 1 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) shares in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Minera Inde | ||
Related Party Transaction | ||
Monthly charges received | $ 15,000 | |
Received amount | $ 72,000 | $ 45,000 |
Sentient Loan | The Sentient Group [Member] | ||
Related Party Transaction | ||
Ownership (as a percent) | 22% | |
Shares issued | 170.3 | |
Shares outstanding | 170.3 |
Subsequent Events (Details)
Subsequent Events (Details) | 1 Months Ended | 3 Months Ended | ||
May 08, 2023 USD ($) item | Apr. 30, 2023 $ / shares shares | Mar. 31, 2023 USD ($) shares | Mar. 31, 2022 USD ($) | |
Subsequent Event | ||||
Proceeds from issuance of common stock, net of issuance costs | $ 701,000 | |||
Cash receipts from shipments completed | $ 4,217,000 | $ 7,506,000 | ||
ATM Agreement | ||||
Subsequent Event | ||||
Aggregate number of common stock sold (Shares) | shares | 2,749,976 | |||
Proceeds from issuance of common stock, net of issuance costs | $ 701,000 | |||
Velardena Properties | Gold-rich Pyrite Concentrates [Member] | ||||
Subsequent Event | ||||
Number of shipments completed | item | 3 | |||
Cash receipts from shipments completed | $ 1,100,000 | |||
Cash receipts as percentage of value of metal in concentrate | 90% | |||
Subsequent Event [Member] | ||||
Subsequent Event | ||||
Aggregate number of common stock sold (Shares) | shares | 4,636,368 | |||
Subsequent Event [Member] | ATM Agreement | ||||
Subsequent Event | ||||
Average price (in dollars per share) | $ / shares | $ 0.24 | |||
Proceeds from issuance of common stock, net of issuance costs | $ 1,100,000 |