Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 25, 2020 | Jun. 30, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | GOLD RESOURCE CORP | ||
Entity Central Index Key | 0001160791 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 65,691,527 | ||
Entity Public Float | $ 212,855,186 | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 11,076 | $ 7,762 |
Gold and silver rounds/bullion | 4,265 | 3,637 |
Accounts receivable, net | 8,362 | 1,744 |
Inventories, net | 24,131 | 14,342 |
Prepaid taxes | 786 | 1,126 |
Prepaid expenses and other current assets | 2,032 | 2,745 |
Total current assets | 50,652 | 31,356 |
Property, plant and mine development, net | 125,259 | 111,242 |
Operating lease assets, net | 7,436 | |
Deferred tax assets, net | 4,635 | 7,372 |
Other non-current assets | 5,030 | 361 |
Total assets | 193,012 | 150,331 |
Current liabilities: | ||
Accounts payable | 14,456 | 12,429 |
Loans payable, current | 879 | 765 |
Finance lease liabilities, current | 446 | 412 |
Operating lease liabilities, current | 7,287 | |
Mining royalty taxes payable, net | 1,538 | 1,926 |
Accrued expenses and other current liabilities | 3,366 | 2,030 |
Total current liabilities | 27,972 | 17,562 |
Reclamation and remediation liabilities | 5,605 | 3,298 |
Loans payable, long-term | 782 | 1,378 |
Finance lease liabilities, long-term | 435 | 831 |
Operating lease liabilities, long-term | 160 | |
Total liabilities | 34,954 | 23,069 |
Shareholders' equity: | ||
Common stock - $0.001 par value, 100,000,000 shares authorized: 65,691,527 and 58,850,431 shares outstanding at December 31, 2019 and 2018, respectively | 66 | 59 |
Additional paid-in capital | 148,171 | 121,602 |
Retained earnings | 16,876 | 12,656 |
Treasury stock at cost, 336,398 shares | (5,884) | (5,884) |
Accumulated other comprehensive loss | (1,171) | (1,171) |
Total shareholders' equity | 158,058 | 127,262 |
Total liabilities and shareholders' equity | $ 193,012 | $ 150,331 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares outstanding | 65,691,527 | 58,850,431 |
Treasury stock, shares | 336,398 | 336,398 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Sales, net | $ 135,366 | $ 115,308 | $ 110,156 |
Depreciation and amortization | 22,812 | 14,616 | 14,554 |
Reclamation and remediation | 99 | 330 | 51 |
Total mine cost of sales | 106,251 | 81,618 | 68,041 |
Mine gross profit | 29,115 | 33,690 | 42,115 |
Costs and expenses: | |||
General and administrative expenses | 9,949 | 9,325 | 8,122 |
Other expense, net | 632 | 3,111 | 1,166 |
Total costs and expenses | 14,233 | 17,139 | 13,637 |
Income (loss) before income taxes | 14,882 | 16,551 | 28,478 |
Provision for income taxes | 9,050 | 7,263 | 24,328 |
Net income | $ 5,832 | $ 9,288 | $ 4,150 |
Net income per common share: | |||
Basic and diluted | $ 0.09 | $ 0.16 | $ 0.07 |
Weighted average shares outstanding: | |||
Basic | 63,681,156 | 57,534,830 | 56,854,670 |
Diluted | 64,032,990 | 58,369,666 | 57,594,993 |
Production costs | |||
Total mine cost of sales | $ 83,340 | $ 66,672 | $ 53,436 |
Exploration expenses | |||
Costs and expenses: | |||
Total costs and expenses | $ 3,652 | $ 4,703 | $ 4,349 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY - USD ($) $ in Thousands | Common Shares | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Total |
Balance at Dec. 31, 2016 | $ 112,034 | $ 2,040 | $ (5,884) | $ (1,171) | $ 107,076 | |
Balance (in shares) at Dec. 31, 2016 | 56,903,272 | |||||
Balance at Dec. 31, 2016 | $ 57 | |||||
Adjustment to retained earnings as a result of adoption of ASU 2016-16 | (533) | (533) | ||||
Stock-based compensation | 1,192 | 1,192 | ||||
Net stock options exercised | 58 | 58 | ||||
Net stock options exercised (in shares) | 25,000 | |||||
Common stock issued for vested restricted stock units (in shares) | 78,400 | |||||
Dividends declared | (1,137) | (1,137) | ||||
Common stock issued for the acquisition of mineral properties | 1,300 | 1,300 | ||||
Common stock issued for the acquisition of mineral properties (in share) | 246,210 | |||||
Net income (loss) | 4,150 | 4,150 | ||||
Balance at Dec. 31, 2017 | 114,584 | 4,520 | (5,884) | (1,171) | 112,106 | |
Balance (in shares) at Dec. 31, 2017 | 57,252,882 | |||||
Balance at Dec. 31, 2017 | $ 57 | |||||
Stock-based compensation | 1,497 | 1,497 | ||||
Net stock options exercised | $ 1 | 1,203 | $ 1,204 | |||
Net stock options exercised (in shares) | 712,271 | 1,412,926 | ||||
Common stock issued for vested restricted stock units (in shares) | 89,921 | |||||
Dividends declared | (1,152) | $ (1,152) | ||||
Issuance of stock, net of issuance costs | $ 1 | 4,318 | 4,319 | |||
Issuance of stock, net of issuance costs (in shares) | 1,131,755 | |||||
Net income (loss) | 9,288 | 9,288 | ||||
Balance at Dec. 31, 2018 | 121,602 | 12,656 | (5,884) | (1,171) | 127,262 | |
Balance (in shares) at Dec. 31, 2018 | 59,186,829 | |||||
Balance at Dec. 31, 2018 | $ 59 | 59 | ||||
Stock-based compensation | 1,932 | 1,932 | ||||
Net stock options exercised | $ 1 | 97 | $ 98 | |||
Net stock options exercised (in shares) | 69,448 | 274,750 | ||||
Common stock issued for vested restricted stock units (in shares) | 121,060 | |||||
Dividends declared | (1,612) | $ (1,612) | ||||
Issuance of stock, net of issuance costs | $ 6 | 24,540 | 24,546 | |||
Issuance of stock, net of issuance costs (in shares) | 6,650,588 | |||||
Net income (loss) | 5,832 | 5,832 | ||||
Balance at Dec. 31, 2019 | $ 148,171 | $ 16,876 | $ (5,884) | $ (1,171) | 158,058 | |
Balance (in shares) at Dec. 31, 2019 | 66,027,925 | |||||
Balance at Dec. 31, 2019 | $ 66 | $ 66 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net income | $ 5,832 | $ 9,288 | $ 4,150 |
Adjustments to reconcile net income to net cash from operating activities: | |||
Deferred income taxes | 2,940 | (501) | 14,991 |
Depreciation and amortization | 23,318 | 15,169 | 14,998 |
Stock-based compensation | 1,932 | 1,497 | 1,192 |
Other operating adjustments | 322 | 2,535 | 1,285 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (6,618) | (220) | (2,254) |
Inventories | (7,846) | (2,820) | (2,797) |
Prepaid expenses and other current assets | 1,443 | (417) | (448) |
Other non-current assets | (3,603) | 130 | (7) |
Accounts payable and other accrued liabilities | 3,802 | 1,489 | 1,636 |
Mining royalty and income taxes payable, net | (106) | (3,894) | 2,887 |
Net cash provided by operating activities | 21,416 | 22,256 | 35,633 |
Cash flows from investing activities: | |||
Capital expenditures | (39,474) | (40,076) | (25,432) |
Other investing activities | 2 | 6 | (257) |
Net cash used in investing activities | (39,472) | (40,070) | (25,689) |
Cash flows from financing activities: | |||
Proceeds from the exercise of stock options | 98 | 1,261 | |
Proceeds from issuance of stock | 24,449 | 4,319 | |
Dividends paid | (1,491) | (1,149) | (1,137) |
Repayment of loans payable | (812) | (596) | (184) |
Repayment of capital leases | (419) | (383) | (73) |
Net cash provided by (used in) financing activities | 21,825 | 3,452 | (1,394) |
Effect of exchange rate changes on cash and cash equivalents | (455) | (266) | (326) |
Net increase (decrease) in cash and cash equivalents | 3,314 | (14,628) | 8,224 |
Cash and cash equivalents at beginning of period | 7,762 | 22,390 | 14,166 |
Cash and cash equivalents at end of period | 11,076 | 7,762 | 22,390 |
Supplemental Cash Flow Information | |||
Interest expense paid | 157 | 177 | 65 |
Income and mining taxes paid | 3,743 | 7,068 | 3,102 |
Non-cash investing activities: | |||
Change in accrued capital expenditures | (550) | 3,302 | 1,041 |
Change in estimate for asset retirement costs | 2,172 | 271 | 366 |
Equipment purchased through loan payable | 330 | 526 | 2,397 |
Equipment purchased under finance leases | $ 56 | $ 26 | 1,686 |
Common stock issued for the acquisition of mineral rights | $ 1,300 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Nature of Operations and Summary of Significant Accounting Policies | |
Nature of Operations and Summary of Significant Accounting Policies | 1. Nature of Operations and Summary of Significant Accounting Policies Nature of Operations Gold Resource Corporation (the “Company”) was organized under the laws of the State of Colorado on August 24, 1998. The Company is a producer of metal concentrates that contain gold, silver, copper, lead and zinc, and doré containing gold and silver at the Aguila and Alta Gracia projects in the southern state of Oaxaca, Mexico (“Oaxaca Mining Unit”). The Aguila project includes the Arista underground mine and processing facility, which are currently in operation. The Alta Gracia project includes the Mirador underground mine which began operations in 2017. The Company also produces gold doré from its Isabella Pearl open-pit mine and performs exploration work on its portfolio of precious metal properties in Nevada, United States of America (“Nevada Mining Unit”) and continues to evaluate other properties for possible acquisition. The Isabella Pearl open-pit mine commenced production in 2019. Significant Accounting Policies Basis of Presentation The consolidated financial statements included herein are expressed in United States dollars, and conform to United States generally accepted accounting principles (“U.S. GAAP”). The consolidated financial statements include the accounts of the Company, its Mexican subsidiary, Don David Gold Mexico S.A. de C.V. (“Don David Gold Mexico”) and its wholly-owned United States subsidiaries GRC Nevada Inc. and Walker Lane Minerals Corp. (“Walker Lane”). Intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. T he more significant areas requiring the use of management estimates and assumptions relate to mineral reserves that are the basis for future cash flow estimates utilized in impairment calculations and units-of-production depreciation calculations; future metal prices; environmental remediation, reclamation and closure obligations; estimates of recoverable gold and other minerals in stockpile and leach pad inventories; estimates of fair value asset impairments; write-downs of inventory, stockpiles and ore on leach pads to net realizable value; valuation allowances for deferred tax assets; provisional amounts related to income tax effects of newly enacted tax laws; and stock-based compensation. Management routinely makes judgments and estimates about the effects of matters that are inherently uncertain and bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances. Actual results could differ from these estimates. Reclassifications Certain amounts presented in prior periods have been reclassified to conform to the current period presentation. The reclassifications had no material effect on the Company’s results of operations or financial condition. Cash and Cash Equivalents Cash and cash equivalents consist of all cash balances and highly liquid investments with a remaining maturity of three months or less when purchased and are carried at cost. Gold and Silver Rounds/Bullion From time to time, the Company may purchase gold and silver bullion on the open market in order to diversify its treasury and provide an option for shareholders to convert their dividends into bullion. The purchased gold and silver bullion is carried at quoted market value prices based on the daily London P.M. fix as of the balance sheet date. The Company considers bullion a highly-liquid investment. Accounts Receivable, net Accounts receivable consists of trade receivables, which are recorded net of allowance for doubtful accounts, from the sale of doré and metals concentrates, as well an embedded derivative based on mark-to-market adjustments for outstanding provisional invoices based on forward metal prices. Please see Note 14 and Note 19 for additional information related to the embedded derivative. As of December 31, 2019 and 2018, the allowance for doubtful accounts was $1.4 million. Inventories The major inventory categories are set forth below: Stockpile Inventories : Stockpile inventories represent ore that has been mined and is available for further processing. Stockpiles are measured by estimating the number of tonnes added and removed from the stockpile, an estimate of the contained metals (based on assay data) and the estimated metallurgical recovery rates. Costs are allocated to stockpiles based on relative values of material stockpiled and processed using current mining costs incurred, including applicable overhead, depreciation and amortization relating to mining operations. Material is removed at each stockpile’s average cost per tonne. Stockpiles are carried at the lower of average cost or net realizable value. Net realizable value represents the estimated future sales price of the product based on current and long-term metals prices, less the estimated costs to complete production and bring the product to sale. The current portion of stockpiles is determined based on the expected amounts to be processed within the next 12 months. Stockpiles not expected to be processed within the next 12 months are classified as long-term. As of December 31, 2019, $4.8 million of stockpiles were classified as current and $4.7 million were classified as long-term. As of December 31, 2018, all stockpiles were classified as current. Concentrate Inventories : Concentrate inventories include metal concentrates located either at the Company’s facilities or in transit to its customer’s port. Inventories consist of copper, lead and zinc metal concentrates, which also contain gold and silver mineralization. Concentrate inventories are carried at the lower of cost of production or net realizable value based on current metals prices. Doré Inventory: Doré includes gold and silver doré bars held at the Company’s facility. Doré inventories are carried at the lower of cost of production or net realizable value based on current metals prices. Leach Pad: Ore on leach pad represents ore that has been mined and placed on the leach pad where a solution is applied to the surface of the heap to extract the gold or silver. Costs are added to ore on leach pads based on current mining costs, including applicable depreciation and amortization relating to mining operations. Costs are removed from ore on leach pads as ounces are recovered based on the average cost per estimated recoverable ounce of gold or silver on the leach pad. Estimates of recoverable ore on the leach pad are calculated from the quantities of ore placed on the leach pad (measured tonnes added to the leach pad), the grade of ore placed on the leach pad (based on assay data) and a recovery percentage (based on ore type). Although the quantities of recoverable ore placed on the leach pad are reconciled by comparing the grades of ore placed on pads to the quantities of metal actually recovered (metallurgical balancing), the nature of the leaching process inherently limits the ability to precisely monitor inventory levels. As a result, the metallurgical balancing process is constantly monitored and estimates are refined based on actual results over time. Variations between actual and estimated quantities resulting from changes in assumptions and estimates that do not result in write-downs to net realizable value are accounted for on a prospective basis. Materials and Supplies Inventories : Materials and supplies inventories consist of chemical reagents, parts, fuels and other materials and supplies. Cost includes applicable taxes and freight. Materials and supplies inventory is carried at lower of average cost or net realizable value. Write-downs of inventory are charged to expense. IVA Taxes Receivable and Payable In Mexico, value added (“IVA”) taxes are assessed on purchases of materials and services and sales of products. Businesses are generally entitled to recover the taxes they have paid related to purchases of materials and services, either as a refund. Likewise, businesses owe IVA taxes as the business sells a product and collects IVA taxes from its customers. Amounts recorded as IVA taxes in the consolidated financial statements represent the net estimated IVA tax receivable or payable, since there is a legal right of offset of IVA taxes. Property, Plant and Mine Development Land and Mineral Rights : The costs of acquiring land and mineral rights are considered tangible assets. Administrative and holding costs to maintain an exploration property are expensed as incurred. If a mineable mineral deposit is discovered, such capitalized costs are amortized when production begins using the units of production (“UOP”) method. If no mineable mineral deposit is discovered or such rights are otherwise determined to have diminished value, such costs are expensed in the period in which the determination is made. Mine Development : The costs include engineering and metallurgical studies, drilling and other related costs to delineate an ore body, the building of access ways, shafts, lateral access, drifts, ramps and other infrastructure. Costs incurred before mineralization is classified as proven and probable reserves are expensed and classified as exploration expenses. Capitalization of mine development project costs, that meet the definition of an asset, begins once mineralization is classified as proven and probable reserves. Drilling costs incurred during the production phase for operational ore control are allocated to inventory costs and then included as a component of production costs. All other drilling and related costs are expensed as incurred. Mine development costs are amortized using the UOP method based on estimated recoverable ounces in proven and probable reserves. The cost of removing overburden and waste materials to access the ore body at an open pit mine prior to the production phase are referred to as “pre-stripping costs.” Pre-stripping costs are capitalized during the development of an open pit mine. Where multiple open pits exist at a mining complex utilizing common processing facilities, pre-stripping costs are capitalized at each pit. The removal, production, and sale of deminimis saleable materials may occur during the development phase of an open pit mine and are assigned incremental mining costs related to the removal of that material. The production phase of an open pit mine commences when saleable minerals, beyond a de minimis amount, are produced. Stripping costs incurred during the production phase of a mine are variable production costs that are included as a component of inventory to be recognized in Costs applicable to sales in the same period as the revenue from the sale of inventory. Property and Equipment : All items of property and equipment are carried at cost. Normal maintenance and repairs are expensed as incurred while expenditures for major maintenance and improvements are capitalized. Gains or losses on disposition are recognized in other (income) expense Construction in Progress : Expenditures for new facilities or equipment are capitalized and recorded at cost. Once completed and ready for its intended use, the asset is transferred to property and equipment to be depreciated or amortized . Depreciation and Amortization : Capitalized costs are depreciated or amortized using the straight-line or UOP method at rates sufficient to depreciate such costs over the shorter of estimated productive lives of such assets or the useful life of the individual assets. The estimates for mineral reserves are a key component in determining the UOP depreciation rates. The estimates of reserves may change, possibly in the near term, resulting in changes to depreciation and amortization rates in future reporting periods. The following are the estimated economic lives of depreciable assets: Range of Lives Asset retirement costs UOP Furniture, computer and office equipment 3 to 10 years Light vehicles and other mobile equipment 4 years Machinery and equipment UOP to 4 years Mill facilities, leach pad, and related infrastructure UOP Mine development and mineral interests UOP Impairment of Long-Lived Assets The Company evaluates its long-lived assets for impairment when events or changes in circumstances indicate that the related carrying amounts may not be recoverable. Asset impairment is considered to exist if the total estimated future cash flows on an undiscounted basis are less than the carrying amount of the asset. If an impairment is indicated, a determination is made whether an impairment has occurred and any impairment losses are measured as the excess of carrying value over the total discounted estimated future cash flows, or the application of an expected fair value technique in the absence of an observable market price and are charged to expense on the Company’s consolidated statements of operations. In estimating future cash flows, assets are grouped at the lowest level for which there are identifiable cash flows that are largely independent of future cash flows from other asset groups. Existing reserves and other mineralized material are included when estimating the fair value in determining whether the assets are impaired. The Company’s estimates of future cash flows are based on numerous assumptions including expected gold and other commodity prices, production levels, capital requirements and estimated salvage values. It is possible that actual future cash flows will be significantly different than the estimates, as actual future quantities of recoverable minerals, gold and other commodity prices, production levels and costs and capital requirements are each subject to significant risks and uncertainties. Fair Value of Financial Instruments The recorded amounts of cash and cash equivalents, gold and silver rounds/bullion, receivables from provisional concentrate sales, accounts payable, and loans payable approximate fair value because of the short maturity of those instruments. Treasury Stock Treasury stock represents shares of the Company’s common stock which have been repurchased on the open market at the prevailing market price at the time of purchase and have not been cancelled. Treasury stock is shown at cost as a separate component of equity. Revenue Recognition The Company recognizes revenue from doré and concentrate sales. Concentrate sales : C oncentrate sales are initially recorded based on 100% of the provisional sales prices, net of treatment and refining charges, at the time of delivery to the customer at which point the performance obligations are satisfied and control of the product is transferred to the customer. Adjustments to the provisional sales prices are made to take into account the mark-to-market changes based on the forward prices of metals until final settlement occurs. The changes in price between the provisional sales price and final sales price are considered an embedded derivative that is required to be separated from the host contract for accounting purposes. The host contract is the receivable from the sale of the concentrates at the quoted metal prices at the time of delivery. The embedded derivative, which does not qualify for hedge accounting, is adjusted to market through revenue each period prior to final settlement. Market changes in the prices of metals between the delivery and final settlement dates will result in adjustments to revenues related to previously recorded sales of concentrate. Sales are recorded net of charges for treatment, refining, smelting losses and other charges negotiated with the buyer. These charges are estimated upon delivery of concentrates based on contractual terms and adjusted to reflect actual charges at final settlement. Historically, actual charges have not varied materially from the Company’s initial estimates . Doré sales : Doré sales are recognized upon the satisfaction of performance obligations, which occurs when price and quantity are agreed upon with the customer. Doré sales are recorded using quoted metal prices, net of refining charges . Production Costs Production costs include labor and benefits, royalties, concentrate and doré shipping costs, mining subcontractors, fuel and lubricants, legal and professional fees related to mine operations, stock-based compensation attributable to mine workers, materials and supplies, repairs and maintenance, explosives, housing and food, insurance, reagents, travel, medical services, security equipment, office rent, tools and other costs that support mining operations. Exploration Costs Exploration costs are charged to expense as incurred. Costs to identify new mineral resources and to evaluate potential resources are considered exploration costs. Stock-Based Compensation The Company accounts for stock-based compensation under the fair value recognition and measurement provisions of U.S. GAAP. Those provisions require all stock-based payments, including grants of stock options and RSUs to be measured based on the grant date fair value of the awards, with the resulting expense generally recognized on a straight-line basis in the consolidated statements of operations over the period during which services are performed in exchange for the award. The majority of the awards are earned over a service period of three years . The Company's estimates may be impacted by certain variables including, but not limited to, stock price volatility, employee stock option exercise behaviors, additional stock option grants, and estimates of forfeitures. Reclamation and Remediation Costs Reclamation costs are allocated to expense over the life of the related assets and are periodically adjusted to reflect changes in the estimated present value resulting from the passage of time and revisions to the estimates of either the timing or amount of the reclamation and remediation costs. Reclamation obligations are based in part on when the spending for an existing environmental disturbance will occur. The Company reviews, at least on an annual basis, the reclamation obligation at each mine. Prior to 2014, the Company had been recognizing only reclamation and remediation obligations and all associated asset retirement costs were written off due to the development stage status as the Company had not been reporting its proven and probable reserves for its Oaxaca Mining Unit. In 2014, the Company became a production stage company and therefore capitalized asset retirement costs and recorded an asset retirement obligation. Please see Note 9 for additional information. Accounting for reclamation and remediation obligations requires management to make estimates unique to each mining operation of the future costs expected to be incurred to complete the reclamation and remediation work required to comply with existing laws and regulations. Actual costs incurred in future periods could differ from amounts estimated. Additionally, future changes to environmental laws and regulations could increase the extent of reclamation and remediation work required. Any such increases in future costs could materially impact the amounts charged to operations for reclamation and remediation. Accumulated Other Comprehensive Loss Accumulated other comprehensive loss is presented in the consolidated statements of changes in shareholders’ equity. Accumulated other comprehensive loss is composed of foreign currency translation adjustment effects related to the historical adjustment when the functional currency was the Mexican peso for our Mexico subsidiary. This loss will remain on our consolidated balance sheet until the sale or dissolution of our Mexico subsidiary. Income and Mining Royalty Taxes Income taxes are computed using the asset and liability method. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial and tax reporting purposes and the effect of net operating loss and foreign tax credit carry-forwards using enacted tax rates in effect in the years in which the differences are expected to reverse. Deferred tax assets are evaluated to determine if it is more likely than not that they will be realized. Please see Note 5 for additional information. Net Income Per Share Basic earnings per share is calculated based on the weighted average number of common shares outstanding for the period. Diluted income per share reflects the dilution that could occur if potentially dilutive securities, as determined using the treasury stock method, are converted into common stock. Potentially dilutive securities are excluded from the calculation when their inclusion would be anti-dilutive, such as periods when a net loss is reported or when the exercise price of the instrument exceeds the average fair market value of the underlying common stock. Foreign Currency The functional currency for all of the Company’s subsidiaries is the United States dollar (“U.S. dollar”). Concentration of Credit Risk The Company has considered and assessed the credit risk resulting from its concentrate sales and doré sales arrangements with its customers. In the event that the Company’s relationships with its customers are interrupted for any reason, the Company believes that it would be able to locate another entity to purchase its metals concentrates and doré bars; however, any interruption could temporarily disrupt the Company’s sale of its products and adversely affect operating results. The Company’s Aguila and Alta Gracia projects, which are located in the State of Oaxaca, Mexico, accounted for 89%, 100%, and 100% of the Company’s total net sales for the years ended December 31, 2019, 2018 and 2017, respectively. The Isabella Pearl Mine in Nevada, U.S.A. accounted for 11% of the Company’s 2019 net sales. Some of the Company’s operating cash balances are maintained in accounts that currently exceed federally insured limits. The Company believes that the financial strength of the depositing institutions mitigates the underlying risk of loss. To date, these concentrations of credit risk have not had a significant impact on the Company’s financial position or results of operations. Recently Adopted Accounting Pronouncements Accounting Standards Update No. 2016-02—Leases (Topic 842 ). In February 2016, the Financial Accounting Standards Board (“FASB”) issued a new standard related to leases to increase transparency and comparability among organizations by requiring the recognition of right-of-use (“ROU”) assets and lease liabilities on the balance sheet. Most prominent among the changes in the standard is the recognition of ROU assets and lease liabilities by lessees for those leases classified as operating leases. Under the standard, disclosures are required to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. Reporting entities are also required to recognize and measure leases existing at, or entered into after, the beginning of the earliest comparative period presented using a modified retrospective approach, with certain practical expedients available. The Company adopted the standard effective January 1, 2019 and elected certain available practical expedients and implemented internal controls and key system functionality to enable the preparation of financial information on adoption. The standard had a material impact on the Company’s Consolidated Balance Sheets but did not have a material impact on its Consolidated Statements of Operations. The most significant impact was the recognition of ROU assets and the current and long-term components of lease liabilities for operating leases, while the Company’s accounting for finance leases remained substantially unchanged. See Note 12 for more information. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2019 | |
Revenue | |
Revenue | 2. Revenue The following table presents the Company’s net sales disaggregated by source: Year ended December 31, 2019 2018 2017 (in thousands) Doré sales, net Gold $ 21,847 $ 6,250 $ 6,270 Silver 2,439 1,348 159 Less: Refining charges (190) (118) (63) Total doré sales, net 24,096 7,480 6,366 Concentrate sales Gold 27,184 22,750 25,526 Silver 21,347 22,972 27,567 Copper 9,930 9,919 6,646 Lead 16,116 15,100 11,568 Zinc 48,804 46,743 38,281 Less: Treatment and refining charges (13,825) (5,447) (7,697) Total concentrate sales, net 109,556 112,037 101,891 Realized/unrealized embedded derivative, net 1,714 (4,209) 1,899 Total sales, net $ 135,366 $ 115,308 110,156 |
Gold and Silver Rounds_Bullion
Gold and Silver Rounds/Bullion | 12 Months Ended |
Dec. 31, 2019 | |
Gold and Silver Rounds/Bullion | |
Gold and Silver Rounds/Bullion | 3. Gold and Silver Rounds/Bullion The Company periodically purchases gold and silver bullion on the open market for investment purposes and to use in its dividend exchange program under which shareholders may exchange their cash dividends for minted gold and silver rounds. The Company did not make any purchases of gold or silver bullion during the years ended December 31, 2019 and 2018. At December 31, 2019 and 2018, the Company’s holdings of rounds/bullion, using quoted market prices, consisted of the following: 2019 2018 Ounces Per Ounce Amount Ounces Per Ounce Amount (in thousands) (in thousands) Gold 1,866 $ 1,515 $ 2,827 1,888 $ 1,279 $ 2,415 Silver 79,662 $ 18.05 1,438 79,864 $ 15.30 1,222 Total holdings $ 4,265 $ 3,637 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Inventories | |
Inventories | 4. Inventories At December 31, 2019 and 2018, current inventories consisted of the following: 2019 2018 (in thousands) Stockpiles - underground mine $ 3,968 $ 2,365 Stockpiles - open pit mine 833 414 Leach pad 9,103 376 Concentrates 1,340 1,231 Doré (1) 1,581 1,289 Subtotal - product inventories 16,825 5,675 Materials and supplies (2) 7,306 8,667 Total $ 24,131 $ 14,342 (1) Net of reserve of $478 and nil as of December 31, 2019 and 2018, respectively. (2) Net of reserve for obsolescence of $1,264 and $857 as of December 31, 2019 and 2018, respectively . In addition to the inventory above, as of December 31, 2019, the Company has $4.7 million of low-grade ore stockpile inventory included in other non-current assets on the accompanying Consolidated Balance Sheet. During the year ended December 31, 2019, the Company recorded a net realizable value inventory adjustment of $2.9 million for inventories at its Isabella Pearl Mine. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes | |
Income Taxes | 5. Income Taxes Gold Resource Corporation and its U.S. subsidiaries file a consolidated U.S. tax return and the Company’s foreign subsidiary files in Mexico. For financial reporting purposes, net income before income taxes includes the following components: Years Ended December 31, 2019 2018 2017 (in thousands) U.S. Operations $ (6,956) $ (9,378) $ (8,142) Foreign Operations, Mexico 21,838 25,929 36,620 Total income before income taxes $ 14,882 $ 16,551 $ 28,478 The Company's income tax expense from continuing operations consists of the following: Years ended December 31, 2019 2018 2017 (in thousands) Current taxes: Federal $ 100 $ - $ 9 Foreign 6,110 7,763 9,327 Total current taxes $ 6,210 $ 7,763 $ 9,336 Deferred taxes: Federal $ 964 $ (1,692) $ 4,923 Foreign 1,876 1,192 10,069 Total deferred taxes $ 2,840 $ (500) $ 14,992 Total income tax provision $ 9,050 $ 7,263 $ 24,328 The provision for income taxes for the years ended December 31, 2019, 2018 and 2017, differs from the amount of income tax determined by applying the applicable United States statutory federal income tax rate to pre-tax income from operations as a result of the following differences: Years Ended December 31, 2019 2018 2017 (in thousands) Tax at statutory rates $ 3,125 $ 3,476 $ 9,967 Foreign rate differential 1,969 2,161 (1,780) GILTI Inclusion 2,173 - - One-time tax on foreign unremitted earnings (1) - - 4,627 Changes in deferred tax assets (336) (189) 6,239 Mexico mining tax 1,608 1,777 2,816 U.S. Tax rate reduction from 35% to 21% (1) - - 2,671 Other 511 38 (212) Tax provision $ 9,050 $ 7,263 $ 24,328 (1) On December 22, 2017, the U.S. government enacted comprehensive tax legislation (the “Tax Act”), which significantly revised the U.S. corporate income tax law by lowering the U.S. federal corporate income tax rate from 35% to 21%, implementing a territorial tax system, imposing a one-time tax on foreign unremitted earnings and setting limitations on deductibility of certain costs, among other things. The following table sets forth deferred tax assets and liabilities: At December 31, 2019 2018 (in thousands) Non-current deferred tax assets: Tax loss carryforward - U.S. $ 2,268 $ 3,862 Property and equipment 13,629 11,025 Share-based compensation 4,058 4,339 Foreign tax credits 4,364 4,448 Inventory 1,121 - Other 1,261 3,572 Total deferred tax assets 26,701 27,246 Valuation allowance (7,333) (7,318) Deferred tax assets after valuation allowance $ 19,368 $ 19,928 Deferred tax liability – Property, plant and mine development (14,733) (12,556) Net deferred tax asset $ 4,635 $ 7,372 Mexico Mining Taxation Mining entities in Mexico are subject to two mining duties, in addition to the 30% Mexico corporate income tax: (i) a “special” mining duty of 7.5% of taxable income as defined under Mexican tax law (also referred to as “mining royalty tax”) on extracting activities performed by concession holders and (ii) the “extraordinary” mining duty of 0.5% on the gross revenue from the sale of gold, silver and platinum. The mining royalty tax is generally applicable to earnings before income tax, depreciation, depletion, amortization, and interest. In calculating the mining royalty tax, there are no deductions related to depreciable costs from operational fixed assets, but exploration and prospecting depreciable costs are deductible when incurred. Both duties are tax deductible for income tax purposes. As a result, our effective tax rate applicable to the Company’s Mexican operations is substantially higher than Mexico statutory rate. The Company periodically transfers funds from its Mexican wholly-owned subsidiary to the U.S. in the form of dividends. Mexico requires a 10% withholding tax on dividends on all post-2013 earnings. The Company began distributing post-2013 earnings from Mexico in 2018. According to the existing U.S. – Mexico tax treaty, the dividend withholding tax between these countries is limited to 5% if certain requirements are met. The Company determined that it had met such requirements and paid a 5% withholding tax on dividends received from Mexico and as a result paid $0.4 million for both years ending December 31, 2019 and 2018. Other Tax Disclosures The Company evaluates the evidence available to determine whether a valuation allowance is required on the deferred tax assets. The Company determined that the deferred tax assets related to state net operating loss carry forwards, and other state related deferred tax assets were not "more likely than not" to be realized and a full valuation allowance was recorded as of December 31, 2019 and 2018. In January 2018, the Financial Accounting Standards Board released guidance on the accounting for tax on the Global Intangible Low Taxed Income (“GILTI”) provisions of the Tax Act. The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. The guidance indicates that either accounting for deferred taxes related to GILTI inclusions or treating any taxes on GILTI inclusions as period cost are both acceptable methods subject to an accounting policy election. The Company has elected to treat GILTI inclusions as period costs. At December 31, 2019, the Company has federal loss carryforwards of $3.2 million, with no expiration date, U.S. Foreign Tax Credits of $4.4 million that expire at various dates between 2023 and 2029, federal capital loss carryforwards of $1.5 million that expire at various dates between 2020 and 2024, and state of Colorado tax loss carryforwards of $34.6 million, of which $30.1 million expire at various dates between 2021 and 2037 and $4.5 million that have no expiration. The Company has placed a valuation allowance against all U.S. Foreign Tax Credits, state of Colorado tax loss carryforwards, and federal capital loss carryforwards as of December 31, 2019 and 2018. As of both December 31, 2019 and 2018, the Company believes that it has no uncertain tax positions. If the Company were to determine there was an uncertain tax position, the Company would recognize the liability and related interest and penalties within income tax expense. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Dec. 31, 2019 | |
Prepaid Expenses And Other Current Assets | |
Prepaid Expenses and Other Current Assets | 6. Prepaid Expenses and Other Current Assets At December 31, 2019 and 2018, prepaid expenses and other current assets consisted of the following: 2019 2018 (in thousands) Advances to suppliers $ 109 $ 289 Prepaid insurance 1,333 1,179 Vendor deposits - 236 IVA taxes receivable, net 245 538 Prepaid royalties 127 295 Other current assets 218 208 Total $ 2,032 $ 2,745 |
Property, Plant and Mine Develo
Property, Plant and Mine Development, net | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Mine Development, net | |
Property, Plant and Mine Development,net | 7. Property, Plant and Mine Development, net At December 31, 2019 and 2018, property, plant and mine development consisted of the following: 2019 2018 (in thousands) Asset retirement costs $ 3,412 $ 1,240 Construction-in-progress (1) 11,965 34,335 Furniture and office equipment 2,087 1,861 Leach pad and ponds 5,649 - Land 242 242 Light vehicles and other mobile equipment 2,553 2,508 Machinery and equipment 43,364 27,485 Mill facilities and infrastructure 31,408 11,712 Mineral interests and mineral rights 18,228 17,958 Mine development 90,089 69,487 Software and licenses 1,659 1,659 Subtotal (2) (3) 210,656 168,487 Accumulated depreciation and amortization (85,397) (57,245) Total $ 125,259 $ 111,242 (1) Nevada construction-in-progress costs of $9.6 million and $21.6 million at December 31, 2019 and 2018, respectively. Mexico construction-in-progress of $2.4 million and $12.7 million at December 31, 2019 and 2018, respectively. (2) Includes $1.8 and $1.7 million of assets recorded under finance leases at December 31, 2019 and 2018, respectively. Please see Note 12 for additional information . (3) Includes capital expenditures in accounts payable of $3.8 million and $4.3 at December 31, 2019 and 2018, respectively. The Company recorded depreciation and amortization expense for the years ended December 31, 2019, 2018 and 2017 of $23.3 million, $15.2 million and $15.0 million, respectively. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Accrued Expenses and Other Current Liabilities | |
Accrued Expenses and Other Current Liabilities | 8. Accrued Expenses and Other Current Liabilities At December 31, 2019 and 2018, accrued expenses and other current liabilities consisted of the following: 2019 2018 (in thousands) Accrued insurance $ 452 $ 364 Accrued royalty payments 2,212 1,432 Dividends payable 219 98 Other payables 483 136 Total $ 3,366 $ 2,030 |
Reclamation and Remediation
Reclamation and Remediation | 12 Months Ended |
Dec. 31, 2019 | |
Reclamation And Remediation | |
Reclamation and Remediation | 9. Reclamation and Remediation The following table presents the changes in the Company’s reclamation and remediation obligations for the years ended December 31, 2019 and 2018: 2019 2018 (in thousands) Reclamation liabilities – balance at beginning of period $ 2,009 $ 2,005 Changes in estimate (82) - Foreign currency exchange loss 87 4 Reclamation liabilities – balance at end of period 2,014 2,009 Asset retirement obligation – balance at beginning of period 1,289 941 Changes in estimate 2,172 271 Accretion 102 78 Foreign currency exchange loss 28 (1) Asset retirement obligation – balance at end of period 3,591 1,289 Total period end balance $ 5,605 $ 3,298 The Company’s undiscounted reclamation liabilities are related to the Aguila project in Mexico. The Company’s asset retirement obligations were discounted using a credit adjusted risk-free rate of 8%. As of December 31, 2019 and 2018, the Company recorded an asset retirement obligation of $2.5 million and $0.8 million, respectively, related to the Isabella Pearl project. As of December 31, 2019 and 2018, the Company’s asset retirement obligation related to the Aguila project in Mexico was $1.1 million and $0.5 million, respectively. |
Loans Payable
Loans Payable | 12 Months Ended |
Dec. 31, 2019 | |
Loans Payable | |
Loans Payable | 10. Loans Payable The Company has financed certain equipment purchases. The loans bear annual interest at rates ranging from 3% to 4.48%, are collateralized by the equipment, and require monthly principal and interest payments of $0.07 million. As of December 31, 2019, there is an outstanding balance of $1.7 million which approximates fair value of the loans. Scheduled minimum repayments are $0.9 million in 2020, $0.7 million in 2021, and $0.1 million in 2022. One of the loan agreements is subject to a prepayment penalty of 1% of the outstanding loan balance at time of full repayment . |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies | |
Commitments and Contingencies | 11. Commitments and Contingencies The Company has a Contract Mining Agreement with a mining contractor relating to mining activities at its Isabella Pearl project. Included in this Agreement is an embedded lease for the mining equipment for which the Company has recognized a right-of-use asset and corresponding operating lease liability. Please see Note 12 for more information. In addition to the embedded lease payments, the Company pays the contract miner operational costs in the normal course of business. These costs represent the remaining future contractual payments for the Contract Mining Agreement over its term. The contractual payments are determined by rates within the Contract Mining Agreement, estimated tonnes moved and bank cubic yards for drilling and blasting. As of December 31, 2019, total estimated contractual payments remaining, excluding embedded lease payments, are $8.1 million for the year ended December 31, 2020. As of December 31, 2019, the Company has equipment purchase commitments aggregating approximately $0.9 million. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases | |
Leases | 12. Leases Operating Leases As discussed in Note 1 to the consolidated financial statements (see "Recently Adopted Accounting Pronouncements"), the Company adopted the new lease accounting standard on January 1, 2019. Upon adoption, the Company recognized operating lease assets and corresponding operating lease liabilities totaling $14.2 million. The Company’s finance leases did not change from December 31, 2018. The Company leases office equipment and administrative offices from third parties as well as an administrative office from a related party. In addition, the Company has an embedded lease in its Contract Mining Agreement. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases as incurred over the lease term. For leases beginning in 2019 and later, the Company accounts for lease components (e.g., fixed payments including rent, real estate taxes and insurance costs) separately from the non-lease components (e.g., common-area maintenance costs). Some leases include one or more options to renew, with renewal terms that can extend the lease term from one to two years. The exercise of lease renewal options is at the Company’s sole discretion. The depreciable life of assets are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. The weighted average remaining lease term for the Company’s operating leases as of December 31, 2019 is 0.88 years. The discount rate implicit within the Company’s leases is generally not determinable and therefore the Company determines the discount rate based on its incremental borrowing rate. The incremental borrowing rate for the Company’s leases is determined based on the lease term adjusted for impacts of collateral. The weighted average discount rate used to measure the Company’s operating lease liabilities as of December 31, 2019 was 4.48%. There are no material residual value guarantees and no restrictions or covenants imposed by the Company’s leases. Most of the Company’s leases have a standard payment schedule; however, the payments for its mining equipment embedded lease are determined by tonnage hauled. This embedded lease is within a Contract Mining Agreement entered into for the mining activities at the Company’s Isabella Pearl Mine. The payments, amortization of the right-of-use asset, and interest vary immaterially from forecasted amounts due to variable conditions at the mine. During the year ended December 31, 2019, the Company capitalized variable lease costs of $2.4 million to Inventory and $4.7 million to Property, plant, and mine development, respectively. The components of all other lease costs recognized within the Company’s Consolidated Statements of Operations are as follows: Year ended December 31, Lease Cost Type Consolidated Statements of Operations Location 2019 (in thousands) Operating lease cost General and administrative expenses $ 75 Operating lease cost Production costs 81 Related party lease cost General and administrative expenses 47 Short term lease cost Production costs 489 Maturities of operating lease liabilities as of December 31, 2019 are as follows (in thousands) Year Ending December 31: 2020 $ 7,430 2021 151 2022 13 2023 - Thereafter - Total lease payments 7,594 Less imputed interest (147) Present value of minimum payments 7,447 Less: current portion (7,287) Long-term portion of minimum payments $ 160 As previously reported in our Annual Report on Form 10-K for the year ended December 31, 2018 and under legacy lease accounting (ASC 840), future minimum lease payments, including both the future minimum lease payments and the other non-lease element payments for the Contract Mining Agreement, as of December 31, 2018 are as follows (in thousands) : Year Ending December 31: 2019 $ 16,259 2020 14,839 2021 72 2022 - Thereafter - Total lease payments $ 31,170 Finance Leases The Company has finance lease agreements for certain equipment. The leases bear annual imputed interest of 1.58% to 5.95% and require monthly principal, interest, and sales tax payments of $0.04 million. The weighted average discount rate for the Company’s finance leases is 5.79%. Scheduled minimum annual payments as of December 31, 2019 are as follows (in thousands) : Year Ending December 31: 2020 $ 483 2021 419 2022 13 2023 13 Thereafter 3 Total minimum obligations 931 Less: interest portion (50) Present value of minimum payments 881 Less: current portion (446) Long-term portion of minimum payments $ 435 Scheduled minimum annual payments as of December 31, 2018 were as follows (in thousands): Year Ending December 31: 2019 $ 470 2020 470 2021 406 2022 - Thereafter - Total minimum obligations 1,346 Less: interest portion (103) Present value of minimum payments 1,243 Less: current portion (412) Long-term portion of minimum payments $ 831 The weighted average remaining lease term for the Company’s finance leases as of December 31, 2019 is 2.01 years. Supplemental cash flow information related to the Company’s operating and finance leases is as follows for the year ended December 31, 2019: Year ended December 31, 2019 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 2,569 Operating cash flows from finance leases 60 Investing cash flows from operating lease 4,719 Financing cash flows from finance leases 419 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Shareholders' Equity | |
Shareholders' Equity | 13. Shareholders’ Equity The Company declared and paid dividends of $1.6 million or approximately $0.03 per share and $1.5 million or approximately $0.02 per share, respectively, for the year ended December 31, 2019. The Company declared and paid dividends of $1.1 million, or $0.02 per share during each of the years ended December 31, 2018 and 2017 . On April 3, 2018, the Company entered into an At-The-Market Offering Agreement (the “ATM Agreement”) with an investment banking firm (“Agent”) pursuant to which the Agent agreed to act as the Company’s sales agent with respect to the offer and sale from time to time of the Company’s common stock having an aggregate gross sales price of up to $75.0 million (the “Shares”). The ATM agreement was renewed and amended on November 29, 2019, effective on the date that the related registration statement is declared effective by the SEC. The ATM Agreement will remain in full force and effect until the earlier of three years after the effective date, or the date that the ATM Agreement is terminated in accordance with the terms therein. An aggregate of 6,625,588 shares and 1,131,755 shares of the Company’s common stock were sold through the ATM Agreement during the years ended December 31, 2019 and 2018, for net proceeds to the Company, after deducting the Agent’s commissions and other expenses, of $24.4 million and $4.3 million, respectively. During the year ended December 31, 2019, the Company issued 25,000 shares of its common stock at a value of $3.88 per share as payment for a one-year investor relations agreement with a third-party. On January 6, 2017, the Company issued 59,642 shares of common stock as partial consideration for additional mineral rights for its Isabella Pearl project. At the time of issuance, the shares were valued at $5.03 per share, for an aggregate value of $0.3 million. On January 17, 2017, the Company issued 186,568 shares of common stock as partial consideration for mineral rights at the East Camp Douglas property. At the time of issuance, the shares were valued at $5.36 per share, for an aggregate value of $1.0 million. In 2011, the Board of Directors approved a share repurchase program pursuant to which the Company may repurchase up to $20.0 million of its common stock from time to time in market transactions. There is no pre-determined end date associated with the share repurchase program. During 2019, 2018 and 2017, the Company did not repurchase any additional shares of common stock. |
Embedded Derivatives
Embedded Derivatives | 12 Months Ended |
Dec. 31, 2019 | |
Embedded Derivatives | |
Embedded Derivatives | 14. Embedded Derivatives Concentrate sales contracts contain embedded derivatives due to the provisional pricing terms for shipments pending final settlement. At the end of each reporting period, the Company records an adjustment to accounts receivable and revenue to reflect the mark-to-market adjustments for outstanding provisional invoices based on forward metal prices. Please see Note 19 for additional information. The following table summarizes the Company’s unsettled sales contracts at December 31, 2019, with the quantities of metals under contract subject to final pricing occurring through February 2020: Gold Silver Copper Lead Zinc (ounces) (ounces) (tonnes) (tonnes) (tonnes) Under contract 10,971 711,190 893 4,467 11,146 Average forward price (per ounce or tonne) $ 1,472 $ 17.04 $ 5,860 $ 2,039 $ 2,367 |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2019 | |
Employee Benefits | |
Employee Benefits | 15. Employee Benefits Effective October 2012, the Company adopted a profit sharing plan (the “Plan”) which covers all U.S. employees. The Plan meets the requirements of a qualified retirement plan pursuant to the provisions of Section 401(k) of the Internal Revenue Code. The Plan provides eligible employees the opportunity to make tax deferred contributions to a retirement trust account up to 45% of their qualified wages, subject to the IRS annual maximums. Any matching contribution by the Company on behalf of the employee is immediately vested; the matching contribution expense amounted to $0.1 million for each of the years ended December 31, 2019, 2018, and 2017. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Stock-Based Compensation | |
Stock-Based Compensation | 16. Stock-Based Compensation During 2016, the Company replaced its Amended and Restated Stock Option and Stock Grant Plan (the “Prior Plan”) with the Gold Resource Corporation 2016 Equity Incentive Plan (the “Incentive Plan”). The Incentive Plan provides for the issuance of five million shares of common stock in the form of incentive and non-qualified stock options, stock appreciation rights, restricted stock units (“RSUs”) , stock grants, stock units, performance shares, performance share units and performance cash. Additionally, pursuant to the terms of the Incentive Plan, shares underlying any award outstanding under the Prior Plan that is terminated, expired, forfeited, or canceled for any reason, will be available for grant under the Incentive Plan. A total of 470,000 options with a term of 10 years were granted during the year ended December 31, 2019, of which 250,000 vested immediately and the remainder vest over a three-year period. A total of 310,870 RSUs were granted during the year ended December 31, 2019, of which 35,072 vest within six months and the remainder vest over a three- year period. Stock Options A summary of stock option activity under the Incentive Plan for the years ended December 31, 2019 and 2018 is presented below: Shares Weighted Weighted Average Aggregate Outstanding as of December 31, 2017 6,245,001 $ 7.23 4.68 $ 4,040 Granted 505,500 5.41 - Exercised (1,412,926) 3.13 - Expired (73) 4.60 - Forfeited (77,667) 3.44 - Outstanding as of December 31, 2018 5,259,835 $ 8.21 4.82 $ 1,396 Granted 470,000 3.78 - Exercised (274,750) 3.95 - Expired (780,250) 5.62 - Forfeited (110,100) 4.55 - Outstanding as of December 31, 2019 4,564,735 $ 8.54 5.09 $ 4,513 Vested and exercisable as of December 31, 2019 4,013,994 $ 9.09 4.58 $ 3,783 The weighted-average fair value of options per share granted during the years ended December 31, 2019, 2018, and 2017 was $1.94, $3.04 and $2.25, respectively. The total intrinsic value of options exercised during the years ended December 31, 2019, 2018, and 2017, was $0.2 million, $2.6 million and $0.1 million, respectively. The total fair value of options vested during the years ended December 31, 2019, 2018 and 2017 was $1.6 million, $0.9 million and $0.8 million, respectively. During the year ended December 31, 2019, stock options to purchase an aggregate of 274,750 shares of the Company’s common stock were exercised at a weighted average exercise price of $3.95 per share. Of that amount, 250,000 of the options were exercised on a net exercise basis, resulting in 44,698 shares being delivered. The remaining 24,750 options were exercised for cash . D uring the year ended December 31, 2018, stock options to purchase an aggregate of 1,412,926 shares of the Company’s common stock were exercised at a weighted average exercise price of $3.13 per share. Of that amount, 945,000 of the options were exercised on a net exercise basis, resulting in 244,345 shares being delivered. The remaining 467,926 options were exercised for cash proceeds of $1.3 million . The following table summarizes information about stock options outstanding at December 31, 2019: Outstanding Exercisable Range of Exercise Prices Number of Options Weighted Average Weighted Number of Weighted $0.00 - $6.25 2,169,335 7.28 $ 3.46 1,757,998 $ 3.39 $6.25 -$12.50 1,025,400 3.84 $ 8.35 885,996 $ 8.58 $12.50 - $18.75 1,250,000 2.78 $ 16.37 1,250,000 $ 16.37 $18.75 - $25.00 120,000 0.16 $ 20.51 120,000 $ 20.51 4,564,735 5.09 $ 8.54 4,013,994 $ 9.09 The assumptions used to determine the value of stock-based awards under the Black-Scholes method are summarized below: Year ended December 31, 2019 2018 2017 Risk-free interest rate 2.20 % 2.72 % 1.94 % Dividend yield 0.53 % 0.40 % 0.53 % Expected volatility 62.76 % 67.11 % 67.70 % Expected life in years 5 5 5 Restricted Stock Units A summary of RSU activity under the Incentive Plan for the years ended December 31, 2019 and 2018 is presented below: Shares Aggregate Weighted Average Nonvested as of December 31, 2017 209,283 $ 920 1.91 Granted 120,002 - Vested (89,921) - Expired - - Forfeited (16,610) - Nonvested as of December 31, 2018 222,754 $ 891 1.77 Granted 310,870 - Vested (121,060) - Expired - - Forfeited (11,329) - Nonvested as of December 31, 2019 401,235 $ 2,223 8.00 The weighted-average fair value per share of RSUs granted during the years ended December 31, 2019 and 2018, and 2017 was $4.83, $6.89 and $4.11, respectively. The total intrinsic value of RSUs vested during the years ended December 31, 2019, 2018, and 2017 was $0.4 million, $0.5 million and $0.3 million, respectively. Stock-Based Compensation Expense Stock-based compensation expense for stock options and RSUs is as follows: Year ended December 31, 2019 2018 2017 (in thousands) Stock options $ 1,458 $ 993 $ 829 Restricted stock units 474 504 363 Total $ 1,932 $ 1,497 $ 1,192 The estimated unrecognized stock-based compensation expense from unvested options and RSUs as of December 31, 2019 was approximately $1.1 million and $1.9 million, respectively, and is expected to be recognized over the remaining vesting periods of up to three years. |
Other Expense, Net
Other Expense, Net | 12 Months Ended |
Dec. 31, 2019 | |
Other Expense, Net | |
Other Expense, Net | 17. Other Expense, Net During the years ended December 31, 2019, 2018 and 2017, other expense, net consisted of the following: Year ended December 31, 2019 2018 2017 (in thousands) Unrealized currency exchange (gain) loss $ (19) $ 230 $ 983 Realized currency exchange loss (gain) 252 707 (457) Unrealized (gain) loss from gold and silver rounds/bullion, net (1) (671) 134 (493) Loss from sale of investments, net (2) - 195 - Loss on disposal of fixed assets 12 389 474 Increase in reserve for inventory obsolescence 885 114 106 Increase in allowance for doubtful accounts receivable - 1,360 - Other expense (income) 173 (18) 553 Total $ 632 $ 3,111 $ 1,166 (1) Gains and losses due to changes in fair value are non-cash in nature until such time that they are realized through cash transactions. (2) During 2018, the Company wrote off its equity investment and recognized a loss of $195. For additional information regarding our fair value measurements and investments, please see Note 19 . |
Net Income per Common Share
Net Income per Common Share | 12 Months Ended |
Dec. 31, 2019 | |
Net Income per Common Share | |
Net Income per Common Share | 18. Net Income per Common Share Basic income per common share is calculated based on the weighted average number of shares of common stock outstanding for the period. Diluted income per common share is calculated based on the assumption that stock options outstanding, which have an exercise price less than the average market price of the Company’s common stock during the period, would have been exercised on the later of the beginning of the period or the date granted and that the funds obtained from the exercise were used to purchase common shares at the average market price during the period. All the Company’s restricted stock units are considered to be dilutive. The effect of the Company’s dilutive securities is calculated using the treasury stock method and only those instruments that result in a reduction in net income per common share are included in the calculation. Options to purchase 4.2 million, 3.6 million, and 3.1 million shares of common stock at weighted average exercise prices of $8.95, $10.44, and $11.26 were outstanding as of December 31, 2019, 2018, and 2017, respectively, but were not included in the computation of diluted weighted average common shares outstanding, as the exercise price of the options exceeded the average price of the Company’s common stock during those periods, and therefore were anti-dilutive. Basic and diluted net income per common share is calculated as follows: Year ended December 31, 2019 2018 2017 Net income (in thousands) $ 5,832 $ 9,288 $ 4,150 Basic weighted average shares of common stock outstanding 63,681,156 57,534,830 56,854,670 Dilutive effect of share-based awards 351,834 834,836 740,323 Diluted weighted average common shares outstanding 64,032,990 58,369,666 57,594,993 Net income per share: Basic and diluted $ 0.09 $ 0.16 $ |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Measurement | |
Fair Value Measurement | 19. Fair Value Measurement Fair value accounting establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below: Level 1 Level 2 Level 3 As required by accounting guidance, assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The following tables set forth certain of the Company’s assets measured at fair value by level within the fair value hierarchy as of December 31, 2019 and 2018: 2019 2018 Input Hierarchy Level (in thousands) Cash and cash equivalents $ 11,076 $ 7,762 Level 1 Gold and silver rounds/bullion $ 4,265 $ 3,637 Level 1 Receivables from provisional concentrate sales $ 8,362 $ 1,744 Level 2 Loans payable $ 1,661 $ 2,143 Level 2 The following methods and assumptions were used to estimate the fair value of each class of financial instrument: Cash and cash equivalents consist primarily of cash deposits and are valued at cost, which approximates fair value. Gold and silver rounds/bullion consist of precious metals used for investment purposes and in the dividend program which are valued using quoted market prices. Please see Note 3 for additional information. During the year ended December 31, 2018, the Company became aware of adverse events that affected the fair value of its non-current investment in equity securities of $0.2 million and as such, adjusted the investment to nil as of December 31, 2018. Trade accounts receivable include amounts due to the Company for deliveries of concentrates and doré sold to customers, net of allowance for doubtful accounts of $1.4 million. Concentrate sales contracts provide for provisional pricing as specified in such contracts. These sales contain an embedded derivative related to the provisional pricing mechanism which is bifurcated and accounted for as a derivative. At the end of each reporting period, the Company records an adjustment to sales to reflect the mark-to-market of outstanding provisional invoices based on the forward price curve. Because these provisionally priced sales have not yet settled as of the reporting date, the mark-to-market adjustment related to these invoices is included in accounts receivable as of each reporting date. At December 31, 2019 and 2018, the Company had an unrealized gain of $0.2 million and an unrealized loss of $0.1 million, respectively, included in its accounts receivable on the accompanying Consolidated Balance Sheets related to mark-to-market adjustments. Please see Note 14 for additional information . Loans payable consist of obligations for equipment purchases financed on a long-term basis. Loans payable are recorded at amortized cost, which approximates fair value. See Note 10 for additional information. Gains and losses related to changes in the fair value of these financial instruments were included in the Company’s Consolidated Statements of Operations as shown in the following : Year ended December 31, 2019 2018 2017 Statement of Operations Classification (in thousands) Realized/unrealized derivative gain (loss), net $ 1,714 $ (4,209) $ 1,899 Sales, net Realized/unrealized gold and silver rounds/bullion gain (loss), net $ 663 $ (148) $ 282 Other expense, net Investment loss $ - $ (195) $ - Other expense, net Realized/Unrealized Derivatives, net The following tables summarize the Company’s realized/unrealized derivatives, net (in thousands) : Gold Silver Copper Lead Zinc Total Year ended December 31, 2019 Realized gain (loss) $ 318 $ 167 $ 17 $ (44) $ 965 $ 1,423 Unrealized gain (loss) 117 208 114 (64) (84) 291 Total realized/unrealized derivatives, net $ 435 $ 375 $ 131 $ (108) $ 881 $ 1,714 Gold Silver Copper Lead Zinc Total Year ended December 31, 2018 Realized loss $ (191) $ (374) $ (268) $ (788) $ (2,081) $ (3,702) Unrealized gain (loss) 222 272 (162) (39) (800) (507) Total realized/unrealized derivatives, net $ 31 $ (102) $ (430) $ (827) $ (2,881) $ (4,209) Gold Silver Copper Lead Zinc Total Year ended December 31, 2017 Realized gain $ 154 $ 151 $ 128 $ 131 $ 798 $ 1,362 Unrealized (loss) gain (93) (183) 64 72 677 537 Total realized/unrealized derivatives, net $ 61 $ (32) $ 192 $ 203 $ 1,475 $ 1,899 |
Supplementary Cash Flow Informa
Supplementary Cash Flow Information | 12 Months Ended |
Dec. 31, 2019 | |
Supplementary Cash Flow Information | |
Supplementary Cash Flow Information | 20. Supplementary Cash Flow Information During the years ended December 31, 2019, 2018, and 2017, other operating adjustments and write-downs within the net cash provided by operations on the Consolidated Statements of Cash Flows consisted of the following: 2019 2018 2017 (in thousands) Unrealized (gain) loss on gold and silver rounds/bullion $ (671) $ 134 $ (493) Unrealized foreign currency exchange (gain) loss (19) 230 983 Loss on sale of investments - 195 - Loss on disposition of fixed assets 12 389 474 Increase in reserve for inventory 885 114 106 Change in allowance for doubtful accounts receivable - 1,360 Other 115 113 215 Total other operating adjustments $ 322 $ 2,535 $ 1,285 |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting | |
Segment Reporting | 21. Segment Reporting The Company has organized its operations into two geographic regions. The geographic regions include Oaxaca, Mexico and Nevada, U.S.A. and represent the Company’s operating segments. 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 Company’s business activities that are not considered operating segments are included in Corporate and Other. The financial information relating to the Company’s segments is as follows ( in thousands ): Mexico Nevada Corporate and Other Consolidated Year ended December 31, 2019 Revenue $ 120,301 $ 15,065 $ - $ 135,366 Exploration expense 2,614 932 106 3,652 Net income (loss) 17,416 300 (11,884) 5,832 Capital expenditures (1) 17,986 23,477 19 41,482 Mexico Nevada Corporate and Other Consolidated Year ended December 31, 2018 Revenue $ 115,308 $ - $ - $ 115,308 Exploration expense 2,217 2,314 172 4,703 Net income (loss) 20,631 (2,585) (8,758) 9,288 Capital expenditures (2) 24,039 20,133 29 44,201 Mexico Nevada Corporate and Other Consolidated Year ended December 31, 2017 Revenue $ 110,156 $ - $ - $ 110,156 Exploration expense 1,288 2,916 145 4,349 Net income (loss) 20,379 (2,423) (13,806) 4,150 Capital expenditures (3) 21,760 10,087 9 31,856 (1) Includes a decrease in capital expenditures in accounts payable of $550 and non-cash additions of $2,558; consolidated capital expenditures on a cash basis were $39,474. (2) Includes an increase in capital expenditures in accounts payable of $3,302 and non-cash additions of $823; consolidated capital expenditures on a cash basis were $40,076. (3) Includes an increase in capital expenditures in accounts payable of $1,041 and non-cash additions of $5,383; consolidated capital expenditures on a cash basis were $25,432. Total asset balances, excluding intercompany balances at December 31, 2019 and December 31, 2018 are as follows: 2019 2018 (in thousands) Mexico $ 98,718 $ 91,590 Nevada 84,669 46,677 Corporate and Other 9,625 12,064 Consolidated $ 193,012 $ 150,331 |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Data | |
Quarterly Financial Data | 22. Quarterly Financial Data (Unaudited) The following represents selected information from the unaudited quarterly Consolidated Statements of Operations for the years ended December 31, 2019 and 2018: 2019 First Quarter Second Quarter Third Quarter Fourth Quarter (in thousands, except per common share data) Sales, net $ 26,578 $ 29,374 $ 40,066 $ 39,348 Mine gross profit $ 5,439 $ 6,491 $ 9,318 $ 7,867 Net income $ 882 $ 1,798 $ 2,978 $ 174 Net income per common share: Basic and diluted $ 0.01 $ 0.03 $ 0.05 $ - Weighted average shares outstanding: Basic 60,672,133 62,778,445 65,495,958 65,691,527 Diluted 61,142,088 63,066,616 65,796,899 66,092,425 2018 First Quarter Second Quarter Third Quarter Fourth Quarter (in thousands, except per common share data) Sales, net $ 32,151 $ 30,768 $ 24,258 $ 28,131 Mine gross profit $ 12,920 $ 9,521 $ 3,293 $ 7,956 Net income (loss) $ 5,457 $ 3,754 $ (781) $ 858 Net income (loss) per common share: Basic $ 0.10 $ 0.07 $ (0.01) $ 0.01 Diluted $ 0.09 $ 0.06 $ (0.01) $ 0.01 Weighted average shares outstanding: Basic 57,120,077 57,315,472 57,642,966 58,049,972 Diluted 57,911,299 58,314,123 57,642,966 58,571,874 |
Nature of Operations and Summ_2
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Nature of Operations and Summary of Significant Accounting Policies | |
Nature Of Operations | Nature of Operations Gold Resource Corporation (the “Company”) was organized under the laws of the State of Colorado on August 24, 1998. The Company is a producer of metal concentrates that contain gold, silver, copper, lead and zinc, and doré containing gold and silver at the Aguila and Alta Gracia projects in the southern state of Oaxaca, Mexico (“Oaxaca Mining Unit”). The Aguila project includes the Arista underground mine and processing facility, which are currently in operation. The Alta Gracia project includes the Mirador underground mine which began operations in 2017. The Company also produces gold doré from its Isabella Pearl open-pit mine and performs exploration work on its portfolio of precious metal properties in Nevada, United States of America (“Nevada Mining Unit”) and continues to evaluate other properties for possible acquisition. The Isabella Pearl open-pit mine commenced production in 2019. |
Basis of Presentation | Basis of Presentation The consolidated financial statements included herein are expressed in United States dollars, and conform to United States generally accepted accounting principles (“U.S. GAAP”). The consolidated financial statements include the accounts of the Company, its Mexican subsidiary, Don David Gold Mexico S.A. de C.V. (“Don David Gold Mexico”) and its wholly-owned United States subsidiaries GRC Nevada Inc. and Walker Lane Minerals Corp. (“Walker Lane”). Intercompany accounts and transactions have been eliminated in consolidation. |
Reclassifications | Reclassifications Certain amounts presented in prior periods have been reclassified to conform to the current period presentation. The reclassifications had no material effect on the Company’s results of operations or financial condition. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of all cash balances and highly liquid investments with a remaining maturity of three months or less when purchased and are carried at cost. |
Gold and Silver Rounds/Bullion | Gold and Silver Rounds/Bullion From time to time, the Company may purchase gold and silver bullion on the open market in order to diversify its treasury and provide an option for shareholders to convert their dividends into bullion. The purchased gold and silver bullion is carried at quoted market value prices based on the daily London P.M. fix as of the balance sheet date. The Company considers bullion a highly-liquid investment. |
Accounts Receivable, net | Accounts Receivable, net Accounts receivable consists of trade receivables, which are recorded net of allowance for doubtful accounts, from the sale of doré and metals concentrates, as well an embedded derivative based on mark-to-market adjustments for outstanding provisional invoices based on forward metal prices. Please see Note 14 and Note 19 for additional information related to the embedded derivative. As of December 31, 2019 and 2018, the allowance for doubtful accounts was $1.4 million. |
Inventories | Inventories The major inventory categories are set forth below: Stockpile Inventories : Stockpile inventories represent ore that has been mined and is available for further processing. Stockpiles are measured by estimating the number of tonnes added and removed from the stockpile, an estimate of the contained metals (based on assay data) and the estimated metallurgical recovery rates. Costs are allocated to stockpiles based on relative values of material stockpiled and processed using current mining costs incurred, including applicable overhead, depreciation and amortization relating to mining operations. Material is removed at each stockpile’s average cost per tonne. Stockpiles are carried at the lower of average cost or net realizable value. Net realizable value represents the estimated future sales price of the product based on current and long-term metals prices, less the estimated costs to complete production and bring the product to sale. The current portion of stockpiles is determined based on the expected amounts to be processed within the next 12 months. Stockpiles not expected to be processed within the next 12 months are classified as long-term. As of December 31, 2019, $4.8 million of stockpiles were classified as current and $4.7 million were classified as long-term. As of December 31, 2018, all stockpiles were classified as current. Concentrate Inventories : Concentrate inventories include metal concentrates located either at the Company’s facilities or in transit to its customer’s port. Inventories consist of copper, lead and zinc metal concentrates, which also contain gold and silver mineralization. Concentrate inventories are carried at the lower of cost of production or net realizable value based on current metals prices. Doré Inventory: Doré includes gold and silver doré bars held at the Company’s facility. Doré inventories are carried at the lower of cost of production or net realizable value based on current metals prices. Leach Pad: Ore on leach pad represents ore that has been mined and placed on the leach pad where a solution is applied to the surface of the heap to extract the gold or silver. Costs are added to ore on leach pads based on current mining costs, including applicable depreciation and amortization relating to mining operations. Costs are removed from ore on leach pads as ounces are recovered based on the average cost per estimated recoverable ounce of gold or silver on the leach pad. Estimates of recoverable ore on the leach pad are calculated from the quantities of ore placed on the leach pad (measured tonnes added to the leach pad), the grade of ore placed on the leach pad (based on assay data) and a recovery percentage (based on ore type). Although the quantities of recoverable ore placed on the leach pad are reconciled by comparing the grades of ore placed on pads to the quantities of metal actually recovered (metallurgical balancing), the nature of the leaching process inherently limits the ability to precisely monitor inventory levels. As a result, the metallurgical balancing process is constantly monitored and estimates are refined based on actual results over time. Variations between actual and estimated quantities resulting from changes in assumptions and estimates that do not result in write-downs to net realizable value are accounted for on a prospective basis. Materials and Supplies Inventories : Materials and supplies inventories consist of chemical reagents, parts, fuels and other materials and supplies. Cost includes applicable taxes and freight. Materials and supplies inventory is carried at lower of average cost or net realizable value. Write-downs of inventory are charged to expense. |
IVA Taxes Receivable and Payable | IVA Taxes Receivable and Payable In Mexico, value added (“IVA”) taxes are assessed on purchases of materials and services and sales of products. Businesses are generally entitled to recover the taxes they have paid related to purchases of materials and services, either as a refund. Likewise, businesses owe IVA taxes as the business sells a product and collects IVA taxes from its customers. Amounts recorded as IVA taxes in the consolidated financial statements represent the net estimated IVA tax receivable or payable, since there is a legal right of offset of IVA taxes. |
Property, Plant and Mine Development | Property, Plant and Mine Development Land and Mineral Rights : The costs of acquiring land and mineral rights are considered tangible assets. Administrative and holding costs to maintain an exploration property are expensed as incurred. If a mineable mineral deposit is discovered, such capitalized costs are amortized when production begins using the units of production (“UOP”) method. If no mineable mineral deposit is discovered or such rights are otherwise determined to have diminished value, such costs are expensed in the period in which the determination is made. Mine Development : The costs include engineering and metallurgical studies, drilling and other related costs to delineate an ore body, the building of access ways, shafts, lateral access, drifts, ramps and other infrastructure. Costs incurred before mineralization is classified as proven and probable reserves are expensed and classified as exploration expenses. Capitalization of mine development project costs, that meet the definition of an asset, begins once mineralization is classified as proven and probable reserves. Drilling costs incurred during the production phase for operational ore control are allocated to inventory costs and then included as a component of production costs. All other drilling and related costs are expensed as incurred. Mine development costs are amortized using the UOP method based on estimated recoverable ounces in proven and probable reserves. The cost of removing overburden and waste materials to access the ore body at an open pit mine prior to the production phase are referred to as “pre-stripping costs.” Pre-stripping costs are capitalized during the development of an open pit mine. Where multiple open pits exist at a mining complex utilizing common processing facilities, pre-stripping costs are capitalized at each pit. The removal, production, and sale of deminimis saleable materials may occur during the development phase of an open pit mine and are assigned incremental mining costs related to the removal of that material. The production phase of an open pit mine commences when saleable minerals, beyond a de minimis amount, are produced. Stripping costs incurred during the production phase of a mine are variable production costs that are included as a component of inventory to be recognized in Costs applicable to sales in the same period as the revenue from the sale of inventory. Property and Equipment : All items of property and equipment are carried at cost. Normal maintenance and repairs are expensed as incurred while expenditures for major maintenance and improvements are capitalized. Gains or losses on disposition are recognized in other (income) expense Construction in Progress : Expenditures for new facilities or equipment are capitalized and recorded at cost. Once completed and ready for its intended use, the asset is transferred to property and equipment to be depreciated or amortized . Depreciation and Amortization : Capitalized costs are depreciated or amortized using the straight-line or UOP method at rates sufficient to depreciate such costs over the shorter of estimated productive lives of such assets or the useful life of the individual assets. The estimates for mineral reserves are a key component in determining the UOP depreciation rates. The estimates of reserves may change, possibly in the near term, resulting in changes to depreciation and amortization rates in future reporting periods. The following are the estimated economic lives of depreciable assets: Range of Lives Asset retirement costs UOP Furniture, computer and office equipment 3 to 10 years Light vehicles and other mobile equipment 4 years Machinery and equipment UOP to 4 years Mill facilities, leach pad, and related infrastructure UOP Mine development and mineral interests UOP |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company evaluates its long-lived assets for impairment when events or changes in circumstances indicate that the related carrying amounts may not be recoverable. Asset impairment is considered to exist if the total estimated future cash flows on an undiscounted basis are less than the carrying amount of the asset. If an impairment is indicated, a determination is made whether an impairment has occurred and any impairment losses are measured as the excess of carrying value over the total discounted estimated future cash flows, or the application of an expected fair value technique in the absence of an observable market price and are charged to expense on the Company’s consolidated statements of operations. In estimating future cash flows, assets are grouped at the lowest level for which there are identifiable cash flows that are largely independent of future cash flows from other asset groups. Existing reserves and other mineralized material are included when estimating the fair value in determining whether the assets are impaired. The Company’s estimates of future cash flows are based on numerous assumptions including expected gold and other commodity prices, production levels, capital requirements and estimated salvage values. It is possible that actual future cash flows will be significantly different than the estimates, as actual future quantities of recoverable minerals, gold and other commodity prices, production levels and costs and capital requirements are each subject to significant risks and uncertainties. |
Treasury Stock | Fair Value of Financial Instruments The recorded amounts of cash and cash equivalents, gold and silver rounds/bullion, receivables from provisional concentrate sales, accounts payable, and loans payable approximate fair value because of the short maturity of those instruments. Treasury Stock Treasury stock represents shares of the Company’s common stock which have been repurchased on the open market at the prevailing market price at the time of purchase and have not been cancelled. Treasury stock is shown at cost as a separate component of equity. |
Revenue recognition | Revenue Recognition The Company recognizes revenue from doré and concentrate sales. Concentrate sales : C oncentrate sales are initially recorded based on 100% of the provisional sales prices, net of treatment and refining charges, at the time of delivery to the customer at which point the performance obligations are satisfied and control of the product is transferred to the customer. Adjustments to the provisional sales prices are made to take into account the mark-to-market changes based on the forward prices of metals until final settlement occurs. The changes in price between the provisional sales price and final sales price are considered an embedded derivative that is required to be separated from the host contract for accounting purposes. The host contract is the receivable from the sale of the concentrates at the quoted metal prices at the time of delivery. The embedded derivative, which does not qualify for hedge accounting, is adjusted to market through revenue each period prior to final settlement. Market changes in the prices of metals between the delivery and final settlement dates will result in adjustments to revenues related to previously recorded sales of concentrate. Sales are recorded net of charges for treatment, refining, smelting losses and other charges negotiated with the buyer. These charges are estimated upon delivery of concentrates based on contractual terms and adjusted to reflect actual charges at final settlement. Historically, actual charges have not varied materially from the Company’s initial estimates . Doré sales : Doré sales are recognized upon the satisfaction of performance obligations, which occurs when price and quantity are agreed upon with the customer. Doré sales are recorded using quoted metal prices, net of refining charges . |
Production Costs | Production Costs Production costs include labor and benefits, royalties, concentrate and doré shipping costs, mining subcontractors, fuel and lubricants, legal and professional fees related to mine operations, stock-based compensation attributable to mine workers, materials and supplies, repairs and maintenance, explosives, housing and food, insurance, reagents, travel, medical services, security equipment, office rent, tools and other costs that support mining operations. |
Exploration Costs | Exploration Costs Exploration costs are charged to expense as incurred. Costs to identify new mineral resources and to evaluate potential resources are considered exploration costs. |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for stock-based compensation under the fair value recognition and measurement provisions of U.S. GAAP. Those provisions require all stock-based payments, including grants of stock options and RSUs to be measured based on the grant date fair value of the awards, with the resulting expense generally recognized on a straight-line basis in the consolidated statements of operations over the period during which services are performed in exchange for the award. The majority of the awards are earned over a service period of three years . The Company's estimates may be impacted by certain variables including, but not limited to, stock price volatility, employee stock option exercise behaviors, additional stock option grants, and estimates of forfeitures. |
Reclamation and Remediation Costs | Reclamation and Remediation Costs Reclamation costs are allocated to expense over the life of the related assets and are periodically adjusted to reflect changes in the estimated present value resulting from the passage of time and revisions to the estimates of either the timing or amount of the reclamation and remediation costs. Reclamation obligations are based in part on when the spending for an existing environmental disturbance will occur. The Company reviews, at least on an annual basis, the reclamation obligation at each mine. Prior to 2014, the Company had been recognizing only reclamation and remediation obligations and all associated asset retirement costs were written off due to the development stage status as the Company had not been reporting its proven and probable reserves for its Oaxaca Mining Unit. In 2014, the Company became a production stage company and therefore capitalized asset retirement costs and recorded an asset retirement obligation. Please see Note 9 for additional information. Accounting for reclamation and remediation obligations requires management to make estimates unique to each mining operation of the future costs expected to be incurred to complete the reclamation and remediation work required to comply with existing laws and regulations. Actual costs incurred in future periods could differ from amounts estimated. Additionally, future changes to environmental laws and regulations could increase the extent of reclamation and remediation work required. Any such increases in future costs could materially impact the amounts charged to operations for reclamation and remediation. |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Accumulated other comprehensive loss is presented in the consolidated statements of changes in shareholders’ equity. Accumulated other comprehensive loss is composed of foreign currency translation adjustment effects related to the historical adjustment when the functional currency was the Mexican peso for our Mexico subsidiary. This loss will remain on our consolidated balance sheet until the sale or dissolution of our Mexico subsidiary. |
Income and Mining Royalty Taxes | Income and Mining Royalty Taxes Income taxes are computed using the asset and liability method. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial and tax reporting purposes and the effect of net operating loss and foreign tax credit carry-forwards using enacted tax rates in effect in the years in which the differences are expected to reverse. Deferred tax assets are evaluated to determine if it is more likely than not that they will be realized. Please see Note 5 for additional information. |
Net Income Per Share | Net Income Per Share Basic earnings per share is calculated based on the weighted average number of common shares outstanding for the period. Diluted income per share reflects the dilution that could occur if potentially dilutive securities, as determined using the treasury stock method, are converted into common stock. Potentially dilutive securities are excluded from the calculation when their inclusion would be anti-dilutive, such as periods when a net loss is reported or when the exercise price of the instrument exceeds the average fair market value of the underlying common stock. |
Foreign Currency | Foreign Currency The functional currency for all of the Company’s subsidiaries is the United States dollar (“U.S. dollar”). |
Concentration of Credit Risk | Concentration of Credit Risk The Company has considered and assessed the credit risk resulting from its concentrate sales and doré sales arrangements with its customers. In the event that the Company’s relationships with its customers are interrupted for any reason, the Company believes that it would be able to locate another entity to purchase its metals concentrates and doré bars; however, any interruption could temporarily disrupt the Company’s sale of its products and adversely affect operating results. The Company’s Aguila and Alta Gracia projects, which are located in the State of Oaxaca, Mexico, accounted for 89%, 100%, and 100% of the Company’s total net sales for the years ended December 31, 2019, 2018 and 2017, respectively. The Isabella Pearl Mine in Nevada, U.S.A. accounted for 11% of the Company’s 2019 net sales. Some of the Company’s operating cash balances are maintained in accounts that currently exceed federally insured limits. The Company believes that the financial strength of the depositing institutions mitigates the underlying risk of loss. To date, these concentrations of credit risk have not had a significant impact on the Company’s financial position or results of operations. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements Accounting Standards Update No. 2016-02—Leases (Topic 842 ). In February 2016, the Financial Accounting Standards Board (“FASB”) issued a new standard related to leases to increase transparency and comparability among organizations by requiring the recognition of right-of-use (“ROU”) assets and lease liabilities on the balance sheet. Most prominent among the changes in the standard is the recognition of ROU assets and lease liabilities by lessees for those leases classified as operating leases. Under the standard, disclosures are required to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. Reporting entities are also required to recognize and measure leases existing at, or entered into after, the beginning of the earliest comparative period presented using a modified retrospective approach, with certain practical expedients available. The Company adopted the standard effective January 1, 2019 and elected certain available practical expedients and implemented internal controls and key system functionality to enable the preparation of financial information on adoption. The standard had a material impact on the Company’s Consolidated Balance Sheets but did not have a material impact on its Consolidated Statements of Operations. The most significant impact was the recognition of ROU assets and the current and long-term components of lease liabilities for operating leases, while the Company’s accounting for finance leases remained substantially unchanged. See Note 12 for more information. |
Nature of Operations and Summ_3
Nature of Operations and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Nature of Operations and Summary of Significant Accounting Policies | |
Estimated Economic Lives | Range of Lives Asset retirement costs UOP Furniture, computer and office equipment 3 to 10 years Light vehicles and other mobile equipment 4 years Machinery and equipment UOP to 4 years Mill facilities, leach pad, and related infrastructure UOP Mine development and mineral interests UOP |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue | |
Revenue from the sale of dore and concentrate | Year ended December 31, 2019 2018 2017 (in thousands) Doré sales, net Gold $ 21,847 $ 6,250 $ 6,270 Silver 2,439 1,348 159 Less: Refining charges (190) (118) (63) Total doré sales, net 24,096 7,480 6,366 Concentrate sales Gold 27,184 22,750 25,526 Silver 21,347 22,972 27,567 Copper 9,930 9,919 6,646 Lead 16,116 15,100 11,568 Zinc 48,804 46,743 38,281 Less: Treatment and refining charges (13,825) (5,447) (7,697) Total concentrate sales, net 109,556 112,037 101,891 Realized/unrealized embedded derivative, net 1,714 (4,209) 1,899 Total sales, net $ 135,366 $ 115,308 110,156 |
Gold and Silver Rounds_Bullion
Gold and Silver Rounds/Bullion (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Gold and Silver Rounds/Bullion | |
Schedule of Company's Holdings | 2019 2018 Ounces Per Ounce Amount Ounces Per Ounce Amount (in thousands) (in thousands) Gold 1,866 $ 1,515 $ 2,827 1,888 $ 1,279 $ 2,415 Silver 79,662 $ 18.05 1,438 79,864 $ 15.30 1,222 Total holdings $ 4,265 $ 3,637 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventories | |
Summary of Inventories | 2019 2018 (in thousands) Stockpiles - underground mine $ 3,968 $ 2,365 Stockpiles - open pit mine 833 414 Leach pad 9,103 376 Concentrates 1,340 1,231 Doré (1) 1,581 1,289 Subtotal - product inventories 16,825 5,675 Materials and supplies (2) 7,306 8,667 Total $ 24,131 $ 14,342 (1) Net of reserve of $478 and nil as of December 31, 2019 and 2018, respectively. (2) Net of reserve for obsolescence of $1,264 and $857 as of December 31, 2019 and 2018, respectively . |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes | |
Components of net income before income taxes and extraordinary item | Years Ended December 31, 2019 2018 2017 (in thousands) U.S. Operations $ (6,956) $ (9,378) $ (8,142) Foreign Operations, Mexico 21,838 25,929 36,620 Total income before income taxes $ 14,882 $ 16,551 $ 28,478 |
Calculation of Income Taxes Provision | Years ended December 31, 2019 2018 2017 (in thousands) Current taxes: Federal $ 100 $ - $ 9 Foreign 6,110 7,763 9,327 Total current taxes $ 6,210 $ 7,763 $ 9,336 Deferred taxes: Federal $ 964 $ (1,692) $ 4,923 Foreign 1,876 1,192 10,069 Total deferred taxes $ 2,840 $ (500) $ 14,992 Total income tax provision $ 9,050 $ 7,263 $ 24,328 |
Differences between provision for income taxes and income tax determined | Years Ended December 31, 2019 2018 2017 (in thousands) Tax at statutory rates $ 3,125 $ 3,476 $ 9,967 Foreign rate differential 1,969 2,161 (1,780) GILTI Inclusion 2,173 - - One-time tax on foreign unremitted earnings (1) - - 4,627 Changes in deferred tax assets (336) (189) 6,239 Mexico mining tax 1,608 1,777 2,816 U.S. Tax rate reduction from 35% to 21% (1) - - 2,671 Other 511 38 (212) Tax provision $ 9,050 $ 7,263 $ 24,328 |
Tax Effects of Temporary Differences That Give Rise to Significant Portions of Deferred Tax Assets | At December 31, 2019 2018 (in thousands) Non-current deferred tax assets: Tax loss carryforward - U.S. $ 2,268 $ 3,862 Property and equipment 13,629 11,025 Share-based compensation 4,058 4,339 Foreign tax credits 4,364 4,448 Inventory 1,121 - Other 1,261 3,572 Total deferred tax assets 26,701 27,246 Valuation allowance (7,333) (7,318) Deferred tax assets after valuation allowance $ 19,368 $ 19,928 Deferred tax liability – Property, plant and mine development (14,733) (12,556) Net deferred tax asset $ 4,635 $ 7,372 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Prepaid Expenses And Other Current Assets | |
Schedule of prepaid and other assets | 2019 2018 (in thousands) Advances to suppliers $ 109 $ 289 Prepaid insurance 1,333 1,179 Vendor deposits - 236 IVA taxes receivable, net 245 538 Prepaid royalties 127 295 Other current assets 218 208 Total $ 2,032 $ 2,745 |
Property, Plant and Mine Deve_2
Property, Plant and Mine Development, net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Mine Development, net | |
Schedule of property, plant and mine development | 2019 2018 (in thousands) Asset retirement costs $ 3,412 $ 1,240 Construction-in-progress (1) 11,965 34,335 Furniture and office equipment 2,087 1,861 Leach pad and ponds 5,649 - Land 242 242 Light vehicles and other mobile equipment 2,553 2,508 Machinery and equipment 43,364 27,485 Mill facilities and infrastructure 31,408 11,712 Mineral interests and mineral rights 18,228 17,958 Mine development 90,089 69,487 Software and licenses 1,659 1,659 Subtotal (2) (3) 210,656 168,487 Accumulated depreciation and amortization (85,397) (57,245) Total $ 125,259 $ 111,242 (1) Nevada construction-in-progress costs of $9.6 million and $21.6 million at December 31, 2019 and 2018, respectively. Mexico construction-in-progress of $2.4 million and $12.7 million at December 31, 2019 and 2018, respectively. (2) Includes $1.8 and $1.7 million of assets recorded under finance leases at December 31, 2019 and 2018, respectively. Please see Note 12 for additional information . (3) Includes capital expenditures in accounts payable of $3.8 million and $4.3 at December 31, 2019 and 2018, respectively. |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accrued Expenses and Other Current Liabilities | |
Schedule of Accrued Expenses and Other Current Liabilities | 2019 2018 (in thousands) Accrued insurance $ 452 $ 364 Accrued royalty payments 2,212 1,432 Dividends payable 219 98 Other payables 483 136 Total $ 3,366 $ 2,030 |
Reclamation and Remediation (Ta
Reclamation and Remediation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Reclamation And Remediation | |
Changes in Reclamation and Remediation | 2019 2018 (in thousands) Reclamation liabilities – balance at beginning of period $ 2,009 $ 2,005 Changes in estimate (82) - Foreign currency exchange loss 87 4 Reclamation liabilities – balance at end of period 2,014 2,009 Asset retirement obligation – balance at beginning of period 1,289 941 Changes in estimate 2,172 271 Accretion 102 78 Foreign currency exchange loss 28 (1) Asset retirement obligation – balance at end of period 3,591 1,289 Total period end balance $ 5,605 $ 3,298 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases | |
Schedule of lease cost | Year ended December 31, Lease Cost Type Consolidated Statements of Operations Location 2019 (in thousands) Operating lease cost General and administrative expenses $ 75 Operating lease cost Production costs 81 Related party lease cost General and administrative expenses 47 Short term lease cost Production costs 489 |
Schedule of future minimum operating lease payments - ASC 842 | Year Ending December 31: 2020 $ 7,430 2021 151 2022 13 2023 - Thereafter - Total lease payments 7,594 Less imputed interest (147) Present value of minimum payments 7,447 Less: current portion (7,287) Long-term portion of minimum payments $ 160 |
Schedule of future minimum operating lease payments - ASC 840 | Year Ending December 31: 2019 $ 16,259 2020 14,839 2021 72 2022 - Thereafter - Total lease payments $ 31,170 |
Schedule of minimum finance lease payments - ASC 842 | Scheduled minimum annual payments as of December 31, 2019 are as follows (in thousands) : Year Ending December 31: 2020 $ 483 2021 419 2022 13 2023 13 Thereafter 3 Total minimum obligations 931 Less: interest portion (50) Present value of minimum payments 881 Less: current portion (446) Long-term portion of minimum payments $ 435 |
Schedule of minimum finance lease payments - ASC 840 | Scheduled minimum annual payments as of December 31, 2018 were as follows (in thousands): Year Ending December 31: 2019 $ 470 2020 470 2021 406 2022 - Thereafter - Total minimum obligations 1,346 Less: interest portion (103) Present value of minimum payments 1,243 Less: current portion (412) Long-term portion of minimum payments $ 831 |
Schedule of supplemental cash flow information | Year ended December 31, 2019 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 2,569 Operating cash flows from finance leases 60 Investing cash flows from operating lease 4,719 Financing cash flows from finance leases 419 |
Embedded Derivatives (Tables)
Embedded Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Embedded Derivatives | |
Summary of unsettled sales contracts | Gold Silver Copper Lead Zinc (ounces) (ounces) (tonnes) (tonnes) (tonnes) Under contract 10,971 711,190 893 4,467 11,146 Average forward price (per ounce or tonne) $ 1,472 $ 17.04 $ 5,860 $ 2,039 $ 2,367 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stock-Based Compensation | |
Schedule of Share-based Compensation, Stock Options, Activity | Shares Weighted Weighted Average Aggregate Outstanding as of December 31, 2017 6,245,001 $ 7.23 4.68 $ 4,040 Granted 505,500 5.41 - Exercised (1,412,926) 3.13 - Expired (73) 4.60 - Forfeited (77,667) 3.44 - Outstanding as of December 31, 2018 5,259,835 $ 8.21 4.82 $ 1,396 Granted 470,000 3.78 - Exercised (274,750) 3.95 - Expired (780,250) 5.62 - Forfeited (110,100) 4.55 - Outstanding as of December 31, 2019 4,564,735 $ 8.54 5.09 $ 4,513 Vested and exercisable as of December 31, 2019 4,013,994 $ 9.09 4.58 $ 3,783 |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range | Outstanding Exercisable Range of Exercise Prices Number of Options Weighted Average Weighted Number of Weighted $0.00 - $6.25 2,169,335 7.28 $ 3.46 1,757,998 $ 3.39 $6.25 -$12.50 1,025,400 3.84 $ 8.35 885,996 $ 8.58 $12.50 - $18.75 1,250,000 2.78 $ 16.37 1,250,000 $ 16.37 $18.75 - $25.00 120,000 0.16 $ 20.51 120,000 $ 20.51 4,564,735 5.09 $ 8.54 4,013,994 $ 9.09 |
Schedule of Assumptions Used to Determine the Value of our Stock-based Awards | Year ended December 31, 2019 2018 2017 Risk-free interest rate 2.20 % 2.72 % 1.94 % Dividend yield 0.53 % 0.40 % 0.53 % Expected volatility 62.76 % 67.11 % 67.70 % Expected life in years 5 5 5 |
Schedule of RSU activity under the Incentive Plan | Shares Aggregate Weighted Average Nonvested as of December 31, 2017 209,283 $ 920 1.91 Granted 120,002 - Vested (89,921) - Expired - - Forfeited (16,610) - Nonvested as of December 31, 2018 222,754 $ 891 1.77 Granted 310,870 - Vested (121,060) - Expired - - Forfeited (11,329) - Nonvested as of December 31, 2019 401,235 $ 2,223 8.00 |
Stock-based compensation expense | Year ended December 31, 2019 2018 2017 (in thousands) Stock options $ 1,458 $ 993 $ 829 Restricted stock units 474 504 363 Total $ 1,932 $ 1,497 $ 1,192 |
Other Expense, Net (Tables)
Other Expense, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Expense, Net | |
Schedule of Other Expense, net | Year ended December 31, 2019 2018 2017 (in thousands) Unrealized currency exchange (gain) loss $ (19) $ 230 $ 983 Realized currency exchange loss (gain) 252 707 (457) Unrealized (gain) loss from gold and silver rounds/bullion, net (1) (671) 134 (493) Loss from sale of investments, net (2) - 195 - Loss on disposal of fixed assets 12 389 474 Increase in reserve for inventory obsolescence 885 114 106 Increase in allowance for doubtful accounts receivable - 1,360 - Other expense (income) 173 (18) 553 Total $ 632 $ 3,111 $ 1,166 (1) Gains and losses due to changes in fair value are non-cash in nature until such time that they are realized through cash transactions. During 2018, the Company wrote off its equity investment and recognized a loss of $195. For additional information regarding our fair value measurements and investments, please see Note 19 . |
Net Income per Common Share (Ta
Net Income per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Net Income per Common Share | |
Net Income Per Share | Year ended December 31, 2019 2018 2017 Net income (in thousands) $ 5,832 $ 9,288 $ 4,150 Basic weighted average shares of common stock outstanding 63,681,156 57,534,830 56,854,670 Dilutive effect of share-based awards 351,834 834,836 740,323 Diluted weighted average common shares outstanding 64,032,990 58,369,666 57,594,993 Net income per share: Basic and diluted $ 0.09 $ 0.16 $ |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Measurement | |
Assets measured at fair value by level within fair value hierarchy | 2019 2018 Input Hierarchy Level (in thousands) Cash and cash equivalents $ 11,076 $ 7,762 Level 1 Gold and silver rounds/bullion $ 4,265 $ 3,637 Level 1 Receivables from provisional concentrate sales $ 8,362 $ 1,744 Level 2 Loans payable $ 1,661 $ 2,143 Level 2 The following methods and assumptions were used to estimate the fair value of each class of financial instrument: |
Gains and Losses Related to Changes in Fair Value | Year ended December 31, 2019 2018 2017 Statement of Operations Classification (in thousands) Realized/unrealized derivative gain (loss), net $ 1,714 $ (4,209) $ 1,899 Sales, net Realized/unrealized gold and silver rounds/bullion gain (loss), net $ 663 $ (148) $ 282 Other expense, net Investment loss $ - $ (195) $ - Other expense, net |
Realized and Unrealized Gain Losses on Derivatives | Gold Silver Copper Lead Zinc Total Year ended December 31, 2019 Realized gain (loss) $ 318 $ 167 $ 17 $ (44) $ 965 $ 1,423 Unrealized gain (loss) 117 208 114 (64) (84) 291 Total realized/unrealized derivatives, net $ 435 $ 375 $ 131 $ (108) $ 881 $ 1,714 Gold Silver Copper Lead Zinc Total Year ended December 31, 2018 Realized loss $ (191) $ (374) $ (268) $ (788) $ (2,081) $ (3,702) Unrealized gain (loss) 222 272 (162) (39) (800) (507) Total realized/unrealized derivatives, net $ 31 $ (102) $ (430) $ (827) $ (2,881) $ (4,209) Gold Silver Copper Lead Zinc Total Year ended December 31, 2017 Realized gain $ 154 $ 151 $ 128 $ 131 $ 798 $ 1,362 Unrealized (loss) gain (93) (183) 64 72 677 537 Total realized/unrealized derivatives, net $ 61 $ (32) $ 192 $ 203 $ 1,475 $ 1,899 |
Supplementary Cash Flow Infor_2
Supplementary Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Supplementary Cash Flow Information | |
Schedule of Supplementary Cash Flow Information | 2019 2018 2017 (in thousands) Unrealized (gain) loss on gold and silver rounds/bullion $ (671) $ 134 $ (493) Unrealized foreign currency exchange (gain) loss (19) 230 983 Loss on sale of investments - 195 - Loss on disposition of fixed assets 12 389 474 Increase in reserve for inventory 885 114 106 Change in allowance for doubtful accounts receivable - 1,360 Other 115 113 215 Total other operating adjustments $ 322 $ 2,535 $ 1,285 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting | |
Schedule of financial information relating to the Company segments | Mexico Nevada Corporate and Other Consolidated Year ended December 31, 2019 Revenue $ 120,301 $ 15,065 $ - $ 135,366 Exploration expense 2,614 932 106 3,652 Net income (loss) 17,416 300 (11,884) 5,832 Capital expenditures (1) 17,986 23,477 19 41,482 Mexico Nevada Corporate and Other Consolidated Year ended December 31, 2018 Revenue $ 115,308 $ - $ - $ 115,308 Exploration expense 2,217 2,314 172 4,703 Net income (loss) 20,631 (2,585) (8,758) 9,288 Capital expenditures (2) 24,039 20,133 29 44,201 Mexico Nevada Corporate and Other Consolidated Year ended December 31, 2017 Revenue $ 110,156 $ - $ - $ 110,156 Exploration expense 1,288 2,916 145 4,349 Net income (loss) 20,379 (2,423) (13,806) 4,150 Capital expenditures (3) 21,760 10,087 9 31,856 (1) Includes a decrease in capital expenditures in accounts payable of $550 and non-cash additions of $2,558; consolidated capital expenditures on a cash basis were $39,474. (2) Includes an increase in capital expenditures in accounts payable of $3,302 and non-cash additions of $823; consolidated capital expenditures on a cash basis were $40,076. (3) Includes an increase in capital expenditures in accounts payable of $1,041 and non-cash additions of $5,383; consolidated capital expenditures on a cash basis were $25,432. |
Schedule of asset balances, excluding investments and intercompany | 2019 2018 (in thousands) Mexico $ 98,718 $ 91,590 Nevada 84,669 46,677 Corporate and Other 9,625 12,064 Consolidated $ 193,012 $ 150,331 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Data | |
Schedule of Quarterly Financial Information | 2019 First Quarter Second Quarter Third Quarter Fourth Quarter (in thousands, except per common share data) Sales, net $ 26,578 $ 29,374 $ 40,066 $ 39,348 Mine gross profit $ 5,439 $ 6,491 $ 9,318 $ 7,867 Net income $ 882 $ 1,798 $ 2,978 $ 174 Net income per common share: Basic and diluted $ 0.01 $ 0.03 $ 0.05 $ - Weighted average shares outstanding: Basic 60,672,133 62,778,445 65,495,958 65,691,527 Diluted 61,142,088 63,066,616 65,796,899 66,092,425 2018 First Quarter Second Quarter Third Quarter Fourth Quarter (in thousands, except per common share data) Sales, net $ 32,151 $ 30,768 $ 24,258 $ 28,131 Mine gross profit $ 12,920 $ 9,521 $ 3,293 $ 7,956 Net income (loss) $ 5,457 $ 3,754 $ (781) $ 858 Net income (loss) per common share: Basic $ 0.10 $ 0.07 $ (0.01) $ 0.01 Diluted $ 0.09 $ 0.06 $ (0.01) $ 0.01 Weighted average shares outstanding: Basic 57,120,077 57,315,472 57,642,966 58,049,972 Diluted 57,911,299 58,314,123 57,642,966 58,571,874 |
Nature of Operations and Summ_4
Nature of Operations and Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Nature Of Operations [Line Items] | |||
Allowance for doubtful accounts | $ 1.4 | $ 1.4 | |
Concentrate sale percentage based on provisional sales price | 100.00% | ||
Stock piles current | $ 4.8 | ||
Low-grade ore stockpile inventory | $ 4.7 | ||
Awards earned over period | 3 years | ||
Sales Revenue [Member] | |||
Nature Of Operations [Line Items] | |||
Concentration risk | 89.00% | 100.00% | 100.00% |
Nature of Operations and Summ_5
Nature of Operations and Summary of Significant Accounting Policies - Estimated Economic Lives (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Furniture, computer and office equipment | Minimum | |
Property Plant And Equipment [Line Items] | |
Useful life | 3 years |
Furniture, computer and office equipment | Maximum | |
Property Plant And Equipment [Line Items] | |
Useful life | 10 years |
Light vehicles and other mobile equipment | |
Property Plant And Equipment [Line Items] | |
Useful life | 4 years |
Machinery and equipment | Maximum | |
Property Plant And Equipment [Line Items] | |
Useful life | 4 years |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Realized/unrealized embedded derivative, net | $ 1,714 | $ (4,209) | $ 1,899 | ||||||||
Total sales, net | $ 39,348 | $ 40,066 | $ 29,374 | $ 26,578 | $ 28,131 | $ 24,258 | $ 30,768 | $ 32,151 | 135,366 | 115,308 | 110,156 |
Dore | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Less: Treatment and refining charges | (190) | (118) | (63) | ||||||||
Total sales, net | 24,096 | 7,480 | 6,366 | ||||||||
Gold Dore | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total sales, net | 21,847 | 6,250 | 6,270 | ||||||||
Silver Dore | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total sales, net | 2,439 | 1,348 | 159 | ||||||||
Concentrate | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Less: Treatment and refining charges | (13,825) | (5,447) | (7,697) | ||||||||
Total sales, net | 109,556 | 112,037 | 101,891 | ||||||||
Gold Concentrate | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total sales, net | 27,184 | 22,750 | 25,526 | ||||||||
Silver Concentrate | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total sales, net | 21,347 | 22,972 | 27,567 | ||||||||
Copper Concentrate | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total sales, net | 9,930 | 9,919 | 6,646 | ||||||||
Lead Concentrate | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total sales, net | 16,116 | 15,100 | 11,568 | ||||||||
Zinc Concentrate | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total sales, net | $ 48,804 | $ 46,743 | $ 38,281 |
Gold and Silver Rounds_Bullio_2
Gold and Silver Rounds/Bullion - Bullion Holdings (Details) $ in Thousands | Dec. 31, 2019USD ($)oz$ / oz | Dec. 31, 2018USD ($)oz$ / oz |
Schedule of Investments [Line Items] | ||
Total carrying value | $ 4,265 | $ 3,637 |
Gold | ||
Schedule of Investments [Line Items] | ||
Ounces | oz | 1,866 | 1,888 |
Carrying value per ounce | $ / oz | 1,515 | 1,279 |
Total carrying value | $ 2,827 | $ 2,415 |
Silver | ||
Schedule of Investments [Line Items] | ||
Ounces | oz | 79,662 | 79,864 |
Carrying value per ounce | $ / oz | 18.05 | 15.30 |
Total carrying value | $ 1,438 | $ 1,222 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Stockpiles - underground mine | $ 3,968 | $ 2,365 |
Stockpiles - open pit mine | 833 | 414 |
Leach pad | 9,103 | 376 |
Concentrates | 1,340 | 1,231 |
Dore | 1,581 | 1,289 |
Subtotal - product inventories | 16,825 | 5,675 |
Materials and supplies | 7,306 | 8,667 |
Total | 24,131 | 14,342 |
Low-grade ore stockpile inventory | 4,700 | |
Dore | ||
Inventory reserve | 478 | 0 |
Materials And Supplies [Member] | ||
Inventory reserve | 1,264 | $ 857 |
Isabella Pearl Project | ||
Inventory adjustment | $ 2,900 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Line Items] | |||
Effective tax rate | 21.00% | 35.00% | |
Withholding tax on dividends | 10.00% | ||
Dividend withholding tax between countries | 5.00% | ||
Dividend Withholding Tax Amount Between Countries | $ 400 | $ 400 | |
MITL corporate income tax rate | 30.00% | ||
MITL royalty tax on mining concessions | 7.50% | ||
Royalty fee as percent of gross revenue | 0.50% | ||
Deferred tax assets | $ 26,701 | $ 27,246 | |
Liability for uncertain tax positions | 0 | ||
Colorado | |||
Income Taxes [Line Items] | |||
Tax credits carryforwards | 34,600 | ||
Between 2023 and 2029 [Member] | Foreign Tax Authority [Member] | |||
Income Taxes [Line Items] | |||
Tax credits carryforwards | 4,400 | ||
Between 2020 and 2024 [Member] | Federal | |||
Income Taxes [Line Items] | |||
Tax credits carryforwards | 1,500 | ||
Between 2021 and 2037 [Member] | Colorado | |||
Income Taxes [Line Items] | |||
Tax credits carryforwards | 30,100 | ||
No Expiration [Member] | Federal | |||
Income Taxes [Line Items] | |||
Tax credits carryforwards | 3,200 | ||
No Expiration [Member] | Colorado | |||
Income Taxes [Line Items] | |||
Tax credits carryforwards | $ 4,500 |
Income Taxes (U.S. And Foreign
Income Taxes (U.S. And Foreign Components Of Loss Before Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes | |||
U.S. Operations | $ (6,956) | $ (9,378) | $ (8,142) |
Foreign Operations | 21,838 | 25,929 | 36,620 |
Income (loss) before income taxes | $ 14,882 | $ 16,551 | $ 28,478 |
Income Taxes (Income Tax Provis
Income Taxes (Income Tax Provision) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes | |||
Federal Current Taxes | $ 100 | $ 9 | |
Foreign Current Taxes | 6,110 | $ 7,763 | 9,327 |
Total current taxes | 6,210 | 7,763 | 9,336 |
Federal Deferred Taxes | 964 | (1,692) | 4,923 |
Foreign Deferred Taxes | 1,876 | 1,192 | 10,069 |
Total deferred taxes | 2,840 | (500) | 14,992 |
Total income tax provision | $ 9,050 | $ 7,263 | $ 24,328 |
Income Taxes (Reconciliation Of
Income Taxes (Reconciliation Of Taxes Reported At Company's Tax Rate And U.S. Federal Statutory Tax Rate) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes | |||
Tax at statutory rates | $ 3,125 | $ 3,476 | $ 9,967 |
Foreign rate differential | 1,969 | 2,161 | (1,780) |
GILTI Inclusion | 2,173 | ||
One-time tax on foreign unremitted earnings (Tax Act) | 4,627 | ||
Changes in deferred tax assets | (336) | (189) | 6,239 |
Mexico mining tax | 1,608 | 1,777 | 2,816 |
U.S. Tax rate reduction from 35% to 21% (Tax Act) | 2,671 | ||
Other | 511 | 38 | (212) |
Total income tax provision | $ 9,050 | $ 7,263 | $ 24,328 |
Income Taxes (Tax Effects Of Te
Income Taxes (Tax Effects Of Temporary Differences That Give Rise To Significant Portions Of Deferred Tax Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Income Taxes | ||
Tax loss carryforward - U.S. | $ 2,268 | $ 3,862 |
Property and equipment | 13,629 | 11,025 |
Stock-based compensation | 4,058 | 4,339 |
Foreign tax credits | 4,364 | 4,448 |
Inventory | 1,121 | |
Other | 1,261 | 3,572 |
Total deferred tax assets | 26,701 | 27,246 |
Valuation allowance | (7,333) | (7,318) |
Deferred Tax Assets after valuation allowance | 19,368 | 19,928 |
Deferred tax liability – Property, plant and mine development | (14,733) | (12,556) |
Net deferred tax asset | $ 4,635 | $ 7,372 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Prepaid Expenses And Other Current Assets | ||
Advances to suppliers | $ 109 | $ 289 |
Prepaid insurance | 1,333 | 1,179 |
Vendor deposits | 236 | |
IVA taxes receivable, net | 245 | 538 |
Prepaid royalties | 127 | 295 |
Other current assets | 218 | 208 |
Total | $ 2,032 | $ 2,745 |
Property, Plant and Mine Deve_3
Property, Plant and Mine Development, net - Summary of Property, Equipment and Mine Development (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, equipment and mine development - net | ||
Property and equipment, gross | $ 210,656 | $ 168,487 |
Accumulated depreciation and amortization | (85,397) | (57,245) |
Total property, equipment and mine development - net | 125,259 | 111,242 |
Accrued capital expenditures | 3,800 | 4,300 |
Asset retirement costs | ||
Property, equipment and mine development - net | ||
Property and equipment, gross | 3,412 | 1,240 |
Construction-in-progress | ||
Property, equipment and mine development - net | ||
Property and equipment, gross | 11,965 | 34,335 |
Furniture and office equipment | ||
Property, equipment and mine development - net | ||
Property and equipment, gross | 2,087 | 1,861 |
Leach pad and ponds | ||
Property, equipment and mine development - net | ||
Property and equipment, gross | 5,649 | |
Land | ||
Property, equipment and mine development - net | ||
Property and equipment, gross | 242 | 242 |
Light vehicles and other mobile equipment | ||
Property, equipment and mine development - net | ||
Property and equipment, gross | 2,553 | 2,508 |
Machinery and equipment | ||
Property, equipment and mine development - net | ||
Property and equipment, gross | 43,364 | 27,485 |
Mill facilities and infrastructure | ||
Property, equipment and mine development - net | ||
Property and equipment, gross | 31,408 | 11,712 |
Mineral interests and mineral rights | ||
Property, equipment and mine development - net | ||
Property and equipment, gross | 18,228 | 17,958 |
Mine development | ||
Property, equipment and mine development - net | ||
Property and equipment, gross | 90,089 | 69,487 |
Software and licenses | ||
Property, equipment and mine development - net | ||
Property and equipment, gross | 1,659 | 1,659 |
Asset Value, Finance Lease | ||
Property, equipment and mine development - net | ||
Property and equipment, gross | 1,800 | 1,700 |
Mexico | ||
Property, equipment and mine development - net | ||
Asset and development costs | 2,400 | 12,700 |
Nevada | ||
Property, equipment and mine development - net | ||
Asset and development costs | $ 9,600 | $ 21,600 |
Property, Plant and Mine Deve_4
Property, Plant and Mine Development, net - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Mine Development, net | |||
Depreciation and amortization expense | $ 23,318 | $ 15,169 | $ 14,998 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accrued Expenses and Other Current Liabilities | ||
Accrued insurance | $ 452 | $ 364 |
Accrued royalty payments | 2,212 | 1,432 |
Dividends payable | 219 | 98 |
Other payables | 483 | 136 |
Total | $ 3,366 | $ 2,030 |
Reclamation and Remediation (De
Reclamation and Remediation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Asset Retirement Obligation, Roll Forward Analysis | ||
Reclamation liabilities – balance at beginning of period | $ 2,009 | $ 2,005 |
Changes in estimate | (82) | |
Foreign currency exchange loss | 87 | 4 |
Reclamation liabilities – balance at end of period | 2,014 | 2,009 |
Asset retirement obligation – balance at beginning of period | 1,289 | 941 |
Changes in estimate | 2,172 | 271 |
Accretion | 102 | 78 |
Foreign currency exchange loss | 28 | (1) |
Asset retirement obligation – balance at end of period | 3,591 | 1,289 |
Total period end balance | $ 5,605 | $ 3,298 |
Reclamation and remediation discount rate | 8.00% | 8.00% |
Aguila Project | ||
Asset Retirement Obligation, Roll Forward Analysis | ||
Asset retirement obligation – balance at beginning of period | $ 500 | |
Asset retirement obligation – balance at end of period | 1,100 | $ 500 |
Isabella Pearl Project | ||
Asset Retirement Obligation, Roll Forward Analysis | ||
Asset retirement obligation – balance at beginning of period | 800 | |
Asset retirement obligation – balance at end of period | $ 2,500 | $ 800 |
Loans Payable (Details)
Loans Payable (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Debt Instrument [Line Items] | |
Periodic payment | $ 70 |
Outstanding loan | 1,700 |
2020 | 900 |
2021 | 700 |
2022 | $ 100 |
Minimum | |
Debt Instrument [Line Items] | |
Interest rate | 3.00% |
Repayment penalty, percentage | 1.00% |
Maximum | |
Debt Instrument [Line Items] | |
Interest rate | 4.48% |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) $ in Millions | Dec. 31, 2019USD ($) |
Commitments and Contingencies | |
Equipment purchase commitments | $ 0.9 |
Remainder of 2020 payments | $ 8.1 |
Leases - Operating Leases (Deta
Leases - Operating Leases (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Lessee, Lease, Description [Line Items] | |
Right-of-use assets | $ 7,436 |
Operating lease liabilities | 7,447 |
ASU 2016-02 | Restatement Adjustment | |
Lessee, Lease, Description [Line Items] | |
Right-of-use assets | 14,200 |
Operating lease liabilities | $ 14,200 |
Leases - Quantitative informati
Leases - Quantitative information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |
Option to renew | true |
Weighted average remaining lease term for operating leases | 10 months 17 days |
Weighted average discount rate used to measure operating lease liabilities | 4.48% |
Operating lease, existence of material residual value guarantees | false |
Inventory | |
Lessee, Lease, Description [Line Items] | |
Capitalized variable lease costs | $ 2.4 |
Property, plant and mine development | |
Lessee, Lease, Description [Line Items] | |
Capitalized variable lease costs | $ 4.7 |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Renewal term | 2 years |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Renewal term | 1 year |
Leases - Other Leases (Details)
Leases - Other Leases (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
General and administrative expenses | |
Lessee, Lease, Description [Line Items] | |
Operating lease cost | $ 75 |
Related party lease cost | 47 |
Production costs | |
Lessee, Lease, Description [Line Items] | |
Operating lease cost | 81 |
Short-term lease cost | $ 489 |
Leases - Maturities of operatin
Leases - Maturities of operating lease liabilities (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Leases | |
2020 | $ 7,430 |
2021 | 151 |
2022 | 13 |
Total lease payments | 7,594 |
Less imputed interest | (147) |
Present value of minimum payments | 7,447 |
Less: current portion | (7,287) |
Present value of minimum payments | $ 160 |
Leases - Future minimum operati
Leases - Future minimum operating lease payment (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2020 | $ 16,259 |
2021 | 14,839 |
2022 | 72 |
Total lease payments | $ 31,170 |
Leases - Quantitative informa_2
Leases - Quantitative information Finance lease (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |
Weighted average discount rate for finance leases | 5.79% |
Monthly principal, interest and sales tax payments | $ 40 |
Finance Lease, Weighted Average Remaining Lease Term | 2 years 4 days |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lessee, Finance Lease, Discount Rate | 1.58% |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lessee, Finance Lease, Discount Rate | 5.95% |
Leases - Finance Leases Minimum
Leases - Finance Leases Minimum Annual Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Finance Lease Liabilities, Payments, Due [Abstract] | ||
2020 | $ 483 | |
2021 | 419 | |
2022 | 13 | |
2023 | 13 | |
Thereafter | 3 | |
Total minimum obligations | 931 | |
Less: interest portion | (50) | |
Present value of minimum payments | 881 | |
Less: current portion | (446) | $ (412) |
Present value of minimum payments | $ 435 | $ 831 |
Leases - Scheduled minimum annu
Leases - Scheduled minimum annual payments (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Capital Leases, Future Minimum Payments, Present Value of Net Minimum Payments, Fiscal Year Maturity [Abstract] | |
2020 | $ 470 |
2021 | 470 |
2022 | 406 |
Total minimum obligations | 1,346 |
Less: interest portion | (103) |
Present value of net minimum payments | 1,243 |
Less: current portion | (412) |
Present value of minimum payments | $ 831 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases | |
Operating cash flows from operating leases | $ 2,569 |
Operating cash flows from finance leases | 60 |
Investing cash flows from operating lease | 4,719 |
Financing cash flows from finance leases | $ 419 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 17, 2017 | Jan. 06, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Apr. 03, 2018 | Sep. 23, 2011 |
Value of shares issued | $ 24,546 | $ 4,319 | |||||
Dividends declared | $ 1,600 | ||||||
Period for consulting agreement | 1 year | ||||||
Cash dividend rate declared, per common share | $ 0.03 | $ 0.02 | $ 0.02 | ||||
Value of shares issued | $ 1,300 | ||||||
Cash dividend rate paid, per common share | $ 0.02 | $ 0.02 | $ 0.02 | ||||
Dividends paid | $ 1,500 | $ 1,100 | $ 1,100 | ||||
Common stock repurchase, shares authorized | $ 20,000 | ||||||
Shares repurchased during period | 0 | 0 | 0 | ||||
Shares issued as payment for third-party agreement | 25,000 | ||||||
Dividends | $ 1,612 | $ 1,152 | $ 1,137 | ||||
ATM Agreement | |||||||
Sale of shares | 6,625,588 | 1,131,755 | |||||
Value of shares issued | $ 24,400 | $ 4,300 | |||||
Isabella Pearl Project | |||||||
Common stock issued for the acquisition of mineral properties (in share) | 59,642 | ||||||
Share issue price ( in dollars per share) | $ 5.03 | ||||||
Value of shares issued | $ 300 | ||||||
East Camp Douglas Property | |||||||
Common stock issued for the acquisition of mineral properties (in share) | 186,568 | ||||||
Share issue price ( in dollars per share) | $ 5.36 | ||||||
Value of shares issued | $ 1,000 | ||||||
Maximum | ATM Agreement | |||||||
Common stock aggregate gross sales price | $ 75,000 |
Embedded Derivatives (Details)
Embedded Derivatives (Details) | 12 Months Ended |
Dec. 31, 2019$ / tozt | |
Gold | |
Embedded Derivative [Line Items] | |
Under contract | 10,971 |
Average forward price | 1,472 |
Silver | |
Embedded Derivative [Line Items] | |
Under contract | 711,190 |
Average forward price | 17.04 |
Copper | |
Embedded Derivative [Line Items] | |
Under contract | t | 893 |
Average forward price | $ / t | 5,860 |
Lead | |
Embedded Derivative [Line Items] | |
Under contract | t | 4,467 |
Average forward price | $ / t | 2,039 |
Zinc | |
Embedded Derivative [Line Items] | |
Under contract | t | 11,146 |
Average forward price | $ / t | 2,367 |
Employee Benefits (Details)
Employee Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Matching contribution expense | $ 0.1 | $ 0.1 | $ 0.1 |
Maximum | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plan maximum percentage amount of the employee's gross pay that the employee can contribute | 45.00% |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Equity Incentive plan shares for issuance authorized | 5,000,000 | ||
Options granted | 470,000 | 505,500 | |
Exercise period | 10 years | ||
Weighted-average grant date fair value of options granted | $ 1.94 | $ 3.04 | $ 2.25 |
Intrinsic value of shares | $ 200 | $ 2,600 | $ 100 |
Weighted Average Exercise Price, Exercised | $ 3.95 | $ 3.13 | |
Fair value | $ 1,600 | $ 900 | $ 800 |
Number of shares purchased | 274,750 | 1,412,926 | |
Number of shares exercised on a net exercise basis | 250,000 | 945,000 | |
Number of shares exercised and delivered | 44,698 | 244,345 | |
Number of shares exercised for cash | 24,750 | 467,926 | |
Proceeds from the exercise of stock options | $ 98 | $ 1,261 | |
Number of options that vested | 250,000 | ||
Vesting period | 3 years | ||
Estimated unrecognized compensation expense | $ 1,100 | ||
Restricted Stock Units (RSUs) | |||
Vested (in shares) | 121,060 | 89,921 | |
Restricted stock units, granted | 310,870 | 120,002 | |
Estimated unrecognized compensation expense | $ 1,900 | ||
RSU vesting period | 3 years | ||
Restricted Stock Units (RSUs) | 6 Months Vested | |||
Vested (in shares) | 35,072 | ||
Vesting period | 6 months | ||
Restricted Stock Units (RSUs) | 3 Year Vested | |||
Vesting period | 3 years |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Activity Under Stock Option Plan (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding, Beginning Balance (in shares) | 5,259,835 | 6,245,001 | |
Granted (in shares) | 470,000 | 505,500 | |
Stock option exercised (in shares) | (274,750) | (1,412,926) | |
Expired (in shares) | (780,250) | (73) | |
Forfeited (in shares) | (110,100) | (77,667) | |
Outstanding, Ending Balance (in shares) | 4,564,735 | 5,259,835 | 6,245,001 |
Vested and exercisable as of December 31, 2015 (in shares) | 4,013,994 | ||
Weighted Average Exercise Price | |||
Outstanding Weighted Average Exercise Price, Beginning Balance | $ 8.21 | $ 7.23 | |
Weighted Average Exercise Price, Granted | 3.78 | 5.41 | |
Weighted Average Exercise Price, Exercised | 3.95 | 3.13 | |
Weighted Average Exercise Price, Expired | 5.62 | 4.60 | |
Weighted Average Exercise Price, Forfeited | 4.55 | 3.44 | |
Outstanding Weighted Average Exercise Price, Ending Balance | 8.54 | $ 8.21 | $ 7.23 |
Weighted Average Exercise Price, Vested and exercisable as of end of period | $ 9.09 | ||
Weighted -Average Remaining contractual Term (in years) | |||
Weighted Average Remaining Contractual Term (in years), Outstanding as Beginning of period | 5 years 1 month 2 days | 4 years 9 months 26 days | 4 years 8 months 5 days |
Weighted Average Remaining Contractual Term (in years), Outstanding as of end of period | 5 years 1 month 2 days | 4 years 9 months 26 days | 4 years 8 months 5 days |
Weighted Average Remaining Contractual Term (in years), Vested and exercisable as of end of period | 4 years 6 months 29 days | ||
Additional disclosures | |||
Aggregate Intrinsic Value, Outstanding as of beginning of period | $ 1,396 | $ 4,040 | |
Aggregate Intrinsic Value, Outstanding as of end of period | 4,513 | $ 1,396 | $ 4,040 |
Aggregate Intrinsic Value, Vested and exercisable as of end of period | $ 3,783 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Stock Options by Exercise Price Range (Details) | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding Number of Options | shares | 4,564,735 |
Outstanding Weighted Average Remaining Contractual Term (in years) | 5 years 1 month 2 days |
Outstanding Weighted Average Exercise Price (per share) | $ 8.54 |
Exercisable Number of Options | shares | 4,013,994 |
Exercisable Weighted Average Exercise Price (per share) | $ 9.09 |
$0.00 - $6.25 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Stock options exercise price range, lower limit | 0 |
Stock options exercise price range, upper limit | $ 6.25 |
Outstanding Number of Options | shares | 2,169,335 |
Outstanding Weighted Average Remaining Contractual Term (in years) | 7 years 3 months 11 days |
Outstanding Weighted Average Exercise Price (per share) | $ 3.46 |
Exercisable Number of Options | shares | 1,757,998 |
Exercisable Weighted Average Exercise Price (per share) | $ 3.39 |
$6.25 -$12.50 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Stock options exercise price range, lower limit | 6.25 |
Stock options exercise price range, upper limit | $ 12.50 |
Outstanding Number of Options | shares | 1,025,400 |
Outstanding Weighted Average Remaining Contractual Term (in years) | 3 years 10 months 2 days |
Outstanding Weighted Average Exercise Price (per share) | $ 8.35 |
Exercisable Number of Options | shares | 885,996 |
Exercisable Weighted Average Exercise Price (per share) | $ 8.58 |
$12.50 - $18.75 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Stock options exercise price range, lower limit | 12.50 |
Stock options exercise price range, upper limit | $ 18.75 |
Outstanding Number of Options | shares | 1,250,000 |
Outstanding Weighted Average Remaining Contractual Term (in years) | 2 years 9 months 11 days |
Outstanding Weighted Average Exercise Price (per share) | $ 16.37 |
Exercisable Number of Options | shares | 1,250,000 |
Exercisable Weighted Average Exercise Price (per share) | $ 16.37 |
$18.75 - $25.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Stock options exercise price range, lower limit | 18.75 |
Stock options exercise price range, upper limit | $ 25 |
Outstanding Number of Options | shares | 120,000 |
Outstanding Weighted Average Remaining Contractual Term (in years) | 1 month 28 days |
Outstanding Weighted Average Exercise Price (per share) | $ 20.51 |
Exercisable Number of Options | shares | 120,000 |
Exercisable Weighted Average Exercise Price (per share) | $ 20.51 |
Stock-Based Compensation - Blac
Stock-Based Compensation - Black-Scholes Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stock-Based Compensation | |||
Risk-free interest rate | 2.20% | 2.72% | 1.94% |
Dividend yield | 0.53% | 0.40% | 0.53% |
Expected volatility | 62.76% | 67.11% | 67.70% |
Expected life in years | 5 years | 5 years | 5 years |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of RSU activity under Incentive Plan (Details) - Restricted Stock Units (RSUs) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Nonvested, Beginning Balance (in shares) | 222,754 | 209,283 | |
Number of RSUs Granted | 310,870 | 120,002 | |
Vested (in shares) | (121,060) | (89,921) | |
Forfeited (in shares) | (11,329) | (16,610) | |
Nonvested, Ending Balance | 401,235 | 222,754 | 209,283 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted Average Exercise Price, Granted (per share) | $ 4.83 | $ 6.89 | $ 4.11 |
Total intrinsic value | $ 400 | $ 500 | $ 300 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |||
Weighted Average Remaining Contractual Term (in years) | 8 years | 1 year 9 months 7 days | 1 year 10 months 28 days |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value [Abstract] | |||
Aggregate Intrinsic Value, Outstanding | $ 2,223 | $ 891 | $ 920 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-based compensation expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stock-Based Compensation | |||
Stock options | $ 1,458 | $ 993 | $ 829 |
Restricted stock units | 474 | 504 | 363 |
Total stock-based compensation | $ 1,932 | $ 1,497 | $ 1,192 |
Other Expense, Net (Details)
Other Expense, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Expense, Net | |||
Unrealized currency exchange (gain) loss | $ (19) | $ 230 | $ 983 |
Realized currency exchange loss (gain) | 252 | 707 | (457) |
Unrealized (gain) loss from gold and silver rounds/bullion, net | (671) | 134 | (493) |
Loss from sale of investments, net | 195 | ||
Loss on disposal of fixed assets | 12 | 389 | 474 |
Increase in reserve for inventory obsolescence | 885 | 114 | 106 |
Increase in allowance for doubtful accounts receivable | 1,360 | ||
Other expense (income) | 173 | (18) | 553 |
Total | $ 632 | $ 3,111 | $ 1,166 |
Net Income per Common Share - N
Net Income per Common Share - Narrative (Details) - $ / shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net Income per Common Share | |||
Stock options excluded from computation of diluted weighted average share outstanding | 4.2 | 3.6 | 3.1 |
Shares excluded from weighted average shares outstanding, exercise price | $ 8.95 | $ 10.44 | $ 11.26 |
Net Income per Common Share - P
Net Income per Common Share - Potential Dilutive Stock Options On Weighted Average Shares Outstanding (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net Income per Common Share | |||||||||||
Net income | $ 174 | $ 2,978 | $ 1,798 | $ 882 | $ 858 | $ (781) | $ 3,754 | $ 5,457 | $ 5,832 | $ 9,288 | $ 4,150 |
Basic weighted average shares of common stock outstanding | 65,691,527 | 65,495,958 | 62,778,445 | 60,672,133 | 58,049,972 | 57,642,966 | 57,315,472 | 57,120,077 | 63,681,156 | 57,534,830 | 56,854,670 |
Dilutive effect of share-based awards | 351,834 | 834,836 | 740,323 | ||||||||
Diluted weighted average common shares outstanding | 66,092,425 | 65,796,899 | 63,066,616 | 61,142,088 | 58,571,874 | 57,642,966 | 58,314,123 | 57,911,299 | 64,032,990 | 58,369,666 | 57,594,993 |
Net income per share: | |||||||||||
Basic and diluted | $ 0.05 | $ 0.03 | $ 0.01 | $ 0.09 | $ 0.16 | $ 0.07 |
Fair Value Measurement (Details
Fair Value Measurement (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of non-current investment in equity securities | $ 200,000 | |
Value after adjustment to investments | 0 | |
Net allowance for doubtful accounts | $ 1,400,000 | |
Accounts Receivable [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Realized/unrealized derivative gain (loss), net | 200,000 | 100,000 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash bank deposits | 11,076,000 | 7,762,000 |
Gold and silver rounds/bullion | 4,265,000 | 3,637,000 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Receivables from provisional concentrate sales | 8,362,000 | 1,744,000 |
Loans Payable | $ 1,661,000 | $ 2,143,000 |
Fair Value Measurement - Statem
Fair Value Measurement - Statement Of Income Classification (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value Statement Of Income Classification [Line Items] | |||
Investment loss | $ (195) | ||
Sales | |||
Fair Value Statement Of Income Classification [Line Items] | |||
Realized/unrealized derivative gain (loss), net | $ 1,714 | (4,209) | $ 1,899 |
Other Operating Income (Expense) | |||
Fair Value Statement Of Income Classification [Line Items] | |||
Realized/unrealized gold and silver rounds/bullion gain (loss), net | $ 663 | (148) | $ 282 |
Investment loss | $ (195) |
Fair Value Measurement - Realiz
Fair Value Measurement - Realized Unrealized Derivatives (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivatives, Fair Value [Line Items] | |||
Realized gain (loss) | $ 1,423 | $ (3,702) | $ 1,362 |
Unrealized gain (loss) | 291 | (507) | 537 |
Total realized/ unrealized derivatives, net | 1,714 | (4,209) | 1,899 |
Gold | |||
Derivatives, Fair Value [Line Items] | |||
Realized gain (loss) | 318 | (191) | 154 |
Unrealized gain (loss) | 117 | 222 | (93) |
Total realized/ unrealized derivatives, net | 435 | 31 | 61 |
Silver | |||
Derivatives, Fair Value [Line Items] | |||
Realized gain (loss) | 167 | (374) | 151 |
Unrealized gain (loss) | 208 | 272 | (183) |
Total realized/ unrealized derivatives, net | 375 | (102) | (32) |
Copper | |||
Derivatives, Fair Value [Line Items] | |||
Realized gain (loss) | 17 | (268) | 128 |
Unrealized gain (loss) | 114 | (162) | 64 |
Total realized/ unrealized derivatives, net | 131 | (430) | 192 |
Lead | |||
Derivatives, Fair Value [Line Items] | |||
Realized gain (loss) | (44) | (788) | 131 |
Unrealized gain (loss) | (64) | (39) | 72 |
Total realized/ unrealized derivatives, net | (108) | (827) | 203 |
Zinc | |||
Derivatives, Fair Value [Line Items] | |||
Realized gain (loss) | 965 | (2,081) | 798 |
Unrealized gain (loss) | (84) | (800) | 677 |
Total realized/ unrealized derivatives, net | $ 881 | $ (2,881) | $ 1,475 |
Supplementary Cash Flow Infor_3
Supplementary Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Supplementary Cash Flow Information | |||
Unrealized (gain) loss on gold and silver rounds/bullion | $ (671) | $ 134 | $ (493) |
Unrealized currency exchange (gain) loss | (19) | 230 | 983 |
Loss on sale of investments | 195 | ||
Loss on disposition of fixed assets | 12 | 389 | 474 |
Increase in reserve for inventory | 885 | 114 | 106 |
Change in allowance for doubtful accounts receivable | 1,360 | ||
Other | 115 | 113 | 215 |
Total other operating adjustments | $ 322 | $ 2,535 | $ 1,285 |
Segment Reporting (Details)
Segment Reporting (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Number of reportable segments | segment | 2 | ||||||||||
Total sales, net | $ 39,348 | $ 40,066 | $ 29,374 | $ 26,578 | $ 28,131 | $ 24,258 | $ 30,768 | $ 32,151 | $ 135,366 | $ 115,308 | $ 110,156 |
Exploration expense | 14,233 | 17,139 | 13,637 | ||||||||
Net income (loss) | 174 | $ 2,978 | $ 1,798 | $ 882 | 858 | $ (781) | $ 3,754 | $ 5,457 | 5,832 | 9,288 | 4,150 |
Capital expenditures | 41,482 | 44,201 | 31,856 | ||||||||
Accrued capital expenditures | (550) | 3,302 | 1,041 | ||||||||
Non - cash additions | 2,558 | 823 | 5,383 | ||||||||
Capital expenditures on a cash basis | 39,474 | 40,076 | 25,432 | ||||||||
Assets | 193,012 | 150,331 | 193,012 | 150,331 | |||||||
Mexico | |||||||||||
Total sales, net | 120,301 | 115,308 | 110,156 | ||||||||
Net income (loss) | 17,416 | 20,631 | 20,379 | ||||||||
Capital expenditures | 17,986 | 24,039 | 21,760 | ||||||||
Assets | 98,718 | 91,590 | 98,718 | 91,590 | |||||||
Nevada | |||||||||||
Total sales, net | 15,065 | ||||||||||
Net income (loss) | 300 | (2,585) | (2,423) | ||||||||
Capital expenditures | 23,477 | 20,133 | 10,087 | ||||||||
Assets | 84,669 | 46,677 | 84,669 | 46,677 | |||||||
Corporate and Other | |||||||||||
Net income (loss) | (11,884) | (8,758) | (13,806) | ||||||||
Capital expenditures | 19 | 29 | 9 | ||||||||
Assets | $ 9,625 | $ 12,064 | 9,625 | 12,064 | |||||||
Exploration expenses | |||||||||||
Exploration expense | 3,652 | 4,703 | 4,349 | ||||||||
Exploration expenses | Mexico | |||||||||||
Exploration expense | 2,614 | 2,217 | 1,288 | ||||||||
Exploration expenses | Nevada | |||||||||||
Exploration expense | 932 | 2,314 | 2,916 | ||||||||
Exploration expenses | Corporate and Other | |||||||||||
Exploration expense | $ 106 | $ 172 | $ 145 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Data | |||||||||||
Sales, net | $ 39,348 | $ 40,066 | $ 29,374 | $ 26,578 | $ 28,131 | $ 24,258 | $ 30,768 | $ 32,151 | $ 135,366 | $ 115,308 | $ 110,156 |
Mine gross profit | 7,867 | 9,318 | 6,491 | 5,439 | 7,956 | 3,293 | 9,521 | 12,920 | 29,115 | 33,690 | 42,115 |
Net income before income taxes | 14,882 | 16,551 | 28,478 | ||||||||
Net income (loss) | $ 174 | $ 2,978 | $ 1,798 | $ 882 | $ 858 | $ (781) | $ 3,754 | $ 5,457 | $ 5,832 | $ 9,288 | $ 4,150 |
Net income (loss) per common share: | |||||||||||
Basic and diluted | $ 0.05 | $ 0.03 | $ 0.01 | $ 0.09 | $ 0.16 | $ 0.07 | |||||
Basic | $ 0.01 | $ (0.01) | $ 0.07 | $ 0.10 | |||||||
Diluted | $ 0.01 | $ (0.01) | $ 0.06 | $ 0.09 | |||||||
Weighted average shares outstanding: | |||||||||||
Basic | 65,691,527 | 65,495,958 | 62,778,445 | 60,672,133 | 58,049,972 | 57,642,966 | 57,315,472 | 57,120,077 | 63,681,156 | 57,534,830 | 56,854,670 |
Diluted | 66,092,425 | 65,796,899 | 63,066,616 | 61,142,088 | 58,571,874 | 57,642,966 | 58,314,123 | 57,911,299 | 64,032,990 | 58,369,666 | 57,594,993 |