Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 02, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-34857 | |
Entity Registrant Name | GOLD RESOURCE CORP | |
Entity Incorporation, State or Country Code | CO | |
Entity Tax Identification Number | 84-1473173 | |
Entity Address, Address Line One | 2886 Carriage Manor Point | |
Entity Address, City or Town | Colorado Springs | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80906 | |
City Area Code | 303 | |
Local Phone Number | 320-7708 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | GORO | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001160791 | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 71,865,696 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 31,313 | $ 11,076 |
Gold and silver rounds/bullion | 5,241 | 4,265 |
Accounts receivable, net | 4,777 | 8,362 |
Inventories, net | 26,977 | 24,131 |
Prepaid taxes | 786 | |
Prepaid expenses and other current assets | 2,168 | 2,032 |
Total current assets | 70,476 | 50,652 |
Property, plant and mine development, net | 117,409 | 125,259 |
Operating lease assets, net | 1,411 | 7,436 |
Deferred tax assets, net | 8,617 | 4,635 |
Other non-current assets | 5,550 | 5,030 |
Total assets | 203,463 | 193,012 |
Current liabilities: | ||
Accounts payable | 11,991 | 14,456 |
Loans payable, current | 840 | 879 |
Finance lease liabilities, current | 465 | 446 |
Operating lease liabilities, current | 1,371 | 7,287 |
Income taxes payable, net | 876 | |
Mining royalty taxes payable, net | 1,162 | 1,538 |
Accrued expenses and other current liabilities | 3,754 | 3,366 |
Total current liabilities | 20,459 | 27,972 |
Reclamation and remediation liabilities | 6,710 | 5,605 |
Loans payable, long-term | 165 | 782 |
Finance lease liabilities, long-term | 84 | 435 |
Operating lease liabilities, long-term | 51 | 160 |
Total liabilities | 27,469 | 34,954 |
Shareholders' equity: | ||
Common stock - $0.001 par value, 100,000,000 shares authorized: 71,850,665 and 65,691,527 shares outstanding at September 30, 2020 and December 31, 2019, respectively | 72 | 66 |
Additional paid-in capital | 168,114 | 148,171 |
Retained earnings | 14,863 | 16,876 |
Treasury stock at cost, 336,398 shares | (5,884) | (5,884) |
Accumulated other comprehensive loss | (1,171) | (1,171) |
Total shareholders' equity | 175,994 | 158,058 |
Total liabilities and shareholders' equity | $ 203,463 | $ 193,012 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2020 | Dec. 31, 2019 |
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 | 71,850,665 | 65,691,527 |
Treasury stock, shares | 336,398 | 336,398 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Sales, net | $ 42,286 | $ 40,066 | $ 91,389 | $ 96,018 |
Depreciation and amortization | 7,289 | 6,117 | 19,694 | 13,524 |
Reclamation and remediation | 68 | 20 | 136 | 77 |
Total mine cost of sales | 31,384 | 30,748 | 82,384 | 74,770 |
Mine gross profit | 10,902 | 9,318 | 9,005 | 21,248 |
Costs and expenses: | ||||
General and administrative expenses | 2,665 | 2,194 | 7,136 | 6,913 |
Other (income) expense, net | (537) | 600 | (871) | 518 |
Total costs and expenses | 3,927 | 3,923 | 9,770 | 10,641 |
Income (loss) before income taxes | 6,975 | 5,395 | (765) | 10,607 |
Provision (benefit) for income taxes | 1,974 | 2,417 | (833) | 4,949 |
Net income | $ 5,001 | $ 2,978 | $ 68 | $ 5,658 |
Net income per common share: | ||||
Basic and diluted | $ 0.07 | $ 0.05 | $ 0.09 | |
Basic | 0.07 | 0.05 | 0.09 | |
Diluted | $ 0.07 | $ 0.05 | $ 0.09 | |
Weighted average shares outstanding: | ||||
Basic | 70,641,938 | 65,495,958 | 68,896,059 | 63,001,178 |
Diluted | 71,044,528 | 65,796,899 | 69,289,349 | 63,336,131 |
Production costs | ||||
Total mine cost of sales | $ 24,027 | $ 24,611 | $ 62,554 | $ 61,169 |
Exploration expenses | ||||
Costs and expenses: | ||||
Total costs and expenses | $ 1,799 | $ 1,129 | $ 3,505 | $ 3,210 |
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, 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 | |||||
Stock-based compensation | 1,581 | 1,581 | ||||
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 | (955) | $ (955) | ||||
Issuance of stock, net of issuance costs | $ 6 | 24,541 | 24,547 | |||
Issuance of stock, net of issuance costs (in shares) | 6,650,588 | |||||
Net income | 5,658 | 5,658 | ||||
Balance at Sep. 30, 2019 | 147,821 | 17,359 | (5,884) | (1,171) | 158,191 | |
Balance (in shares) at Sep. 30, 2019 | 66,027,925 | |||||
Balance at Sep. 30, 2019 | $ 66 | |||||
Balance at Jun. 30, 2019 | 144,812 | 14,710 | (5,884) | (1,171) | 152,533 | |
Balance (in shares) at Jun. 30, 2019 | 65,147,953 | |||||
Balance at Jun. 30, 2019 | $ 66 | |||||
Stock-based compensation | 367 | $ 367 | ||||
Net stock options exercised (in shares) | 0 | |||||
Common stock issued for vested restricted stock units (in shares) | 106,256 | |||||
Dividends declared | (329) | $ (329) | ||||
Issuance of stock, net of issuance costs | 2,642 | 2,642 | ||||
Issuance of stock, net of issuance costs (in shares) | 773,716 | |||||
Net income | 2,978 | 2,978 | ||||
Balance at Sep. 30, 2019 | 147,821 | 17,359 | (5,884) | (1,171) | 158,191 | |
Balance (in shares) at Sep. 30, 2019 | 66,027,925 | |||||
Balance at Sep. 30, 2019 | $ 66 | |||||
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 | ||||
Stock-based compensation | 1,175 | $ 1,175 | ||||
Net stock options exercised (in shares) | 0 | |||||
Common stock issued for vested restricted stock units (in shares) | 93,205 | |||||
Dividends declared | (2,081) | $ (2,081) | ||||
Issuance of stock, net of issuance costs | $ 6 | 18,768 | 18,774 | |||
Issuance of stock, net of issuance costs (in shares) | 6,065,933 | |||||
Net income | 68 | 68 | ||||
Balance at Sep. 30, 2020 | 168,114 | 14,863 | (5,884) | (1,171) | 175,994 | |
Balance (in shares) at Sep. 30, 2020 | 72,187,063 | |||||
Balance at Sep. 30, 2020 | $ 72 | 72 | ||||
Balance at Jun. 30, 2020 | 160,937 | 10,570 | (5,884) | (1,171) | 164,522 | |
Balance (in shares) at Jun. 30, 2020 | 70,397,497 | |||||
Balance at Jun. 30, 2020 | $ 70 | |||||
Stock-based compensation | 305 | $ 305 | ||||
Net stock options exercised (in shares) | 0 | |||||
Common stock issued for vested restricted stock units (in shares) | 58,133 | |||||
Dividends declared | (708) | $ (708) | ||||
Issuance of stock, net of issuance costs | $ 2 | 6,872 | 6,874 | |||
Issuance of stock, net of issuance costs (in shares) | 1,731,433 | |||||
Net income | 5,001 | 5,001 | ||||
Balance at Sep. 30, 2020 | $ 168,114 | $ 14,863 | $ (5,884) | $ (1,171) | 175,994 | |
Balance (in shares) at Sep. 30, 2020 | 72,187,063 | |||||
Balance at Sep. 30, 2020 | $ 72 | $ 72 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 68 | $ 5,658 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Deferred income taxes | (4,617) | 1,091 |
Depreciation and amortization | 19,953 | 13,881 |
Stock-based compensation | 1,175 | 1,581 |
Other operating adjustments | (815) | 314 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 3,585 | (6,056) |
Inventories | (1,823) | (5,727) |
Prepaid expenses and other current assets | (196) | 1,505 |
Other non-current assets | (1,304) | (2,882) |
Accounts payable and other accrued liabilities | 60 | 349 |
Mining royalty and income taxes payable, net | 1,610 | (1,944) |
Net cash provided by operating activities | 17,696 | 7,770 |
Cash flows from investing activities: | ||
Capital expenditures | (12,915) | (29,166) |
Other investing activities | 133 | 2 |
Net cash used in investing activities | (12,782) | (29,164) |
Cash flows from financing activities: | ||
Proceeds from the exercise of stock options | 98 | |
Proceeds from issuance of stock | 18,674 | 24,449 |
Dividends paid | (2,062) | (944) |
Repayment of loans payable | (656) | (597) |
Repayment of finance leases | (332) | (311) |
Net cash provided by financing activities | 15,624 | 22,695 |
Effect of exchange rate changes on cash and cash equivalents | (301) | (306) |
Net increase in cash and cash equivalents | 20,237 | 995 |
Cash and cash equivalents at beginning of period | 11,076 | 7,762 |
Cash and cash equivalents at end of period | 31,313 | 8,757 |
Supplemental Cash Flow Information | ||
Interest expense paid | 84 | 121 |
Income and mining taxes paid | 1,915 | 3,743 |
Non-cash investing activities: | ||
Change in capital expenditures in accounts payable | (2,207) | 158 |
Change in estimate for asset retirement costs | 1,404 | 1,476 |
Equipment purchased through loan payable | 330 | |
Equipment purchased under finance leases | $ 56 | |
Common stock issued for the acquisition of mineral rights | $ 100 |
Basis of Preparation of Financi
Basis of Preparation of Financial Statements | 9 Months Ended |
Sep. 30, 2020 | |
Basis of Preparation of Financial Statements | |
Basis of Preparation of Financial Statements | 1. Basis of Preparation of Financial Statements The interim Condensed Consolidated Financial Statements (“interim financial statements”) of Gold Resource Corporation and its subsidiaries (collectively, the “Company”) are unaudited and have been prepared in accordance with the rules of the Securities and Exchange Commission for interim statements. Certain information and footnote disclosures required by United States Generally Accepted Accounting Principles (“U.S. GAAP”) have been condensed or omitted as permitted by such rules, although the Company believes that the disclosures included are adequate to make the information presented not misleading. In the opinion of management, all adjustments (including normal recurring adjustments) and disclosures necessary for a fair presentation of these interim financial statements have been included. The results reported in these interim financial statements are not necessarily indicative of the results that may be reported for the entire year. These interim financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2019 included in the Company’s annual report on Form 10-K. The year-end balance sheet data was derived from the audited financial statements. Unless otherwise noted, there have been no material changes to the footnotes from those accompanying the audited consolidated financial statements contained in the Company’s annual report on Form 10-K. Certain items in the prior period’s Condensed Consolidated Financial Statements have been reclassified to conform to the current presentation. |
Recently Adopted Accounting Sta
Recently Adopted Accounting Standards | 9 Months Ended |
Sep. 30, 2020 | |
Recently Adopted Accounting Standards | |
Recently Adopted Accounting Standards | 2. Recently Adopted Accounting Standards In June 2016, the Financial Accounting Standards Board issued ASU No. 2016-13, "Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments”. The standard modifies the measurement approach for credit losses on financial instruments, including trade receivables, from an incurred loss method to a current expected credit loss method. The standard requires the measurement of expected credit losses to be based on relevant information, including historical experiences, current conditions and a forecast that is supportable. The Company adopted the new standard on January 1, 2020. The adoption of the standard did not have any effect on the Company’s Condensed Consolidated Financial Statements. |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2020 | |
Revenue | |
Revenue | 3. Revenue The Company derives its revenue from the sale of doré and concentrates. The following table presents the Company’s net sales for each period presented, disaggregated by source: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 (in thousands) (in thousands) Doré sales, net Gold $ 17,449 $ 7,399 $ 35,663 $ 12,192 Silver 878 619 2,232 1,670 Less: Refining charges (170) (39) (436) (138) Total doré sales, net 18,157 7,979 37,459 13,724 Concentrate sales Gold 5,211 7,767 13,894 19,072 Silver 6,857 6,370 14,638 15,673 Copper 2,911 2,502 6,470 7,237 Lead 3,501 4,480 8,730 11,874 Zinc 10,894 13,875 25,110 36,998 Less: Treatment and refining charges (5,795) (3,691) (14,930) (10,709) Total concentrate sales, net 23,579 31,303 53,912 80,145 Realized/unrealized embedded derivative, net 550 784 18 2,149 Total sales, net $ 42,286 $ 40,066 $ 91,389 $ 96,018 |
Gold and Silver Rounds_Bullion
Gold and Silver Rounds/Bullion | 9 Months Ended |
Sep. 30, 2020 | |
Gold and Silver Rounds/Bullion | |
Gold and Silver Rounds/Bullion | 4 . 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. During the three and nine months ended September 30, 2020, the Company sold 32 ounces of gold and 3,000 ounces of silver for proceeds of $0.1 million. No sales of gold and silver occurred in 2019. At September 30, 2020 and December 31, 2019, the Company’s holdings of rounds/bullion, using quoted market prices, consisted of the following: 2020 2019 Ounces Per Ounce Amount Ounces Per Ounce Amount (in thousands) (in thousands) Gold 1,816 $ 1,887 $ 3,426 1,866 $ 1,515 $ 2,827 Silver 76,481 $ 23.73 1,815 79,662 $ 18.05 1,438 Total holdings $ 5,241 $ 4,265 |
Inventories, net
Inventories, net | 9 Months Ended |
Sep. 30, 2020 | |
Inventories | |
Inventories | 5. Inventories, net At September 30, 2020 and December 31, 2019, inventories, net consisted of the following: 2020 2019 (in thousands) Stockpiles - underground mine $ 414 $ 3,968 Stockpiles - open pit mine 615 833 Leach pad 16,261 9,103 Concentrates 1,716 1,340 Doré (1) 1,032 1,581 Subtotal - product inventories 20,038 16,825 Materials and supplies (2) 6,939 7,306 Total $ 26,977 $ 24,131 (1) Net of reserve of $368 and $478 at September 30, 2020 and December 31, 2019, respectively. (2) Net of reserve for obsolescence of $1,264 as of September 30, 2020 and December 31, 2019. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Taxes | |
Income Taxes | 6. Income Taxes The Company recorded income tax expense and income tax benefit of $2.0 million and $0.8 million for the three and nine months ended September 30, 2020, respectively. For the three and nine months ended September 30, 2019, the Company recorded income tax expense of $2.4 million and $4.9 million, respectively. In accordance with applicable accounting rules, the interim provision for taxes was calculated by using the consolidated effective tax rate. The consolidated effective tax rate is a function of the combined effective tax rates for the jurisdictions in which the Company operates. Variations in the relative proportions of jurisdictional income could result in fluctuations to the Company’s consolidated effective tax rate. At the federal level, the Company’s income in the U.S. is taxed at 21%, while a 5% net proceeds of minerals tax applies to the Company’s operations in Nevada, and a 5% withholding tax applies to dividends received from Mexico. The U.S. tax results are combined with the Company’s income in Mexico taxed at 37.5% (30% income tax and 7.5% mining tax), which results in a consolidated effective tax rate above statutory Federal rates. Enacted in response to the novel coronavirus (“COVID-19”) pandemic, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act provides roughly $2 trillion in economic relief to eligible businesses and individuals impacted by the novel coronavirus outbreak. The CARES Act is significant legislation that will affect nearly every aspect of the economy. The CARES Act affected corporate taxpayers, including corporations seeking sources of liquidity through net operating loss (“NOL”) carryback claims and income tax refunds. The Company has not applied for aid or relief funds under the CARES Act and in most cases will not qualify for such aid as our operations in the U.S. have continued uninterrupted and our operation in Mexico is considered to be foreign business, thus not qualifying for benefits under the Act. However, as a result of changes under the CARES Act, corporate taxpayers with eligible NOLs may now carryback those losses to prior years to receive a refund of up to five years of prior taxes paid. As the CARES Act did not modify IRC Section 172(b)(3), a taxpayer, where advantageous, can still waive the carryback and elect to carry NOLs forward to subsequent tax years. Further, for years 2018 through 2020, the CARES Act removed the 80% NOL utilization limitation on corporate taxpayers, thus the Company may use NOLs to fully offset taxable income in those years. The CARES Act has no immediate impact on the Company’s income taxes, however removal of the NOL utilization limitation will expedite its future realization of US losses generated post Tax Cuts and Jobs Act of 2017. 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 to foreign parent companies unless otherwise provided per tax treaty. 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. Based on the Company’s review of these requirements, it estimates it will pay a 5% withholding tax on dividends received from Mexico in 2020. The impact of the planned annual dividends for 2020 is reflected in the estimated annual effective tax rate. As of September 30, 2020, the Company believes that it has no liability for uncertain tax positions. The U.S. Treasury Department issued final regulations in July 2020 concerning global intangible low-taxed income, commonly referred to as GILTI tax, and introduced by the Tax Act of 2017. The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. The final tax regulations allow income to be excluded from GILTI tax that is subject to an effective tax rate higher than 90% of the U.S. tax rate (18.9% ). The Company completed its assessment of the new legislation during the three months ended September 30, 2020 and determined that due to this high tax exception, that GILTI tax was not incurred in 2019. As a result of this analysis, the Company recorded a reversal of the prior year GILTI tax expense that resulted in |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 9 Months Ended |
Sep. 30, 2020 | |
Prepaid Expenses And Other Current Assets | |
Prepaid Expenses and Other Current Assets | 7. Prepaid Expenses and Other Current Assets At September 30, 2020 and December 31, 2019, prepaid expenses and other current assets consisted of the following: 2020 2019 (in thousands) Advances to suppliers $ 635 $ 109 Prepaid insurance 1,121 1,333 IVA taxes receivable, net 140 245 Prepaid royalties - 127 Other current assets 272 218 Total $ 2,168 $ 2,032 |
Property, Plant and Mine Develo
Property, Plant and Mine Development, net | 9 Months Ended |
Sep. 30, 2020 | |
Property, Plant and Mine Development, net | |
Property, Plant and Mine Development,net | 8. Property, Plant and Mine Development, net At September 30, 2020 and December 31, 2019, property, plant and mine development, net consisted of the following: 2020 2019 (in thousands) Asset retirement costs $ 4,816 $ 3,412 Construction-in-progress (1) 3,686 11,965 Furniture and office equipment 2,140 2,087 Leach pad and ponds 5,649 5,649 Land 242 242 Light vehicles and other mobile equipment 2,601 2,553 Machinery and equipment 45,005 43,364 Mill facilities and infrastructure 32,004 31,408 Mineral interests and mineral rights 18,878 18,228 Mine Development (2) 106,181 90,089 Software and licenses 1,659 1,659 Subtotal (3) (4) 222,861 210,656 Accumulated depreciation and amortization (105,452) (85,397) Total $ 117,409 $ 125,259 (1) Includes Nevada construction-in-progress and pre-production stripping costs of $0.2 million and $9.6 million at September 30, 2020 and December 31, 2019, respectively. Mexico construction-in-progress was $3.5 million and $2.4 million at September 30, 2020 and December 31, 2019, respectively. (2) Pearl deposit mine development of $13.3 million was put into service on April 1, 2020. (3) Includes $1.8 million of assets recorded under finance leases. Please see Note 13 for additional information. (4) Includes accrued capital expenditures of $ 1.6 million and $3.8 million at September 30, 2020 and December 31, 2019, respectively. The Company recorded depreciation and amortization expense of $7.4 million and $20.0 million for the three and nine months ended September 30, 2020, respectively. For the three and nine months ended September 30, 2019, the Company recorded $6.3 million and $13.9 million, respectively. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 9 Months Ended |
Sep. 30, 2020 | |
Accrued Expenses and Other Current Liabilities | |
Accrued Expenses and Other Current Liabilities | 9. Accrued Expenses and Other Current Liabilities At September 30, 2020 and December 31, 2019, accrued expenses and other current liabilities consisted of the following: 2020 2019 (in thousands) Accrued insurance $ 653 $ 452 Accrued royalty payments 2,410 2,212 Dividends payable 238 219 Other payables 453 483 Total $ 3,754 $ 3,366 |
Reclamation and Remediation
Reclamation and Remediation | 9 Months Ended |
Sep. 30, 2020 | |
Reclamation And Remediation | |
Reclamation and Remediation | 10 . Reclamation and Remediation The following table presents the changes in reclamation and remediation obligations for the nine months ended September 30, 2020 and year ended December 31, 2019: 2020 2019 (in thousands) Reclamation liabilities – balance at beginning of period $ 2,014 $ 2,009 Changes in estimate - (82) Foreign currency exchange (gain) loss (325) 87 Reclamation liabilities – balance at end of period 1,689 2,014 Asset retirement obligation – balance at beginning of period 3,591 1,289 Changes in estimate 1,404 2,172 Accretion 207 102 Foreign currency exchange (gain) loss (181) 28 Asset retirement obligation – balance at end of period 5,021 3,591 Total period end balance $ 6,710 $ 5,605 The Company’s reclamation liabilities are related to the Aguila project in Mexico. As of September 30, 2020 and December 31, 2019, the Company had a $5.2 million and $6.7 million off-balance sheet arrangement, respectively, consisting of a $9.2 million surety bond off-set by a $4.0 million and $2.5 million asset retirement obligation at September 30, 2020 and December 31, 2019, respectively, for future reclamation obligations for Isabella Pearl. million, respectively. The Company’s asset retirement obligations were discounted using a credit adjusted risk-free rate of 8% . |
Loans Payable
Loans Payable | 9 Months Ended |
Sep. 30, 2020 | |
Loans Payable | |
Loans Payable | 11. Loans Payable The Company has financed certain equipment purchases on a long-term basis. 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 $0.08 million. As of September 30, 2020, and December 31, 2019, there was an outstanding balance of $1.0 million and $1.7 million, respectively. Scheduled remaining minimum repayments are $0.2 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 repayment. The fair value of the loans payable, based on Level 2 inputs, approximated the outstanding balance at both September 30, 2020 and December 31, 2019. See Note 19 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies | |
Commitments and Contingencies | 12. Commitments and Contingencies The Company has a Contract Mining Agreement with a mining contractor relating to mining activities at its Isabella Pearl project in Nevada. 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 13 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 September 30, 2020, total estimated contractual payments remaining, excluding embedded lease payments, are $0.6 million for the year ended December 31, 2020. As of September 30, 2020, the Company has equipment purchase commitments aggregating approximately $0.7 million. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2020 | |
Leases | |
Leases | 13. Leases Operating Leases 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 September 30, 2020 is 0.27 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 September 30, 2020 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 contained in the Contract Mining Agreement entered into for the mining activities at the Company’s Isabella Pearl project. 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 three months ended September 30, 2020, the Company capitalized variable lease costs of $1.8 million to Inventory. During the nine months ended September 30, 2020, the Company capitalized variable lease costs of $4.6 million to Inventory and $1.5 million to Property, plant, and mine development. During the three months ended September 30, 2019, the Company capitalized variable lease costs of $0.3 million to Inventory and $1.4 million to Property, plant, and mine development. During the nine months ended September 30, 2019, the Company capitalized variable lease costs of $1.8 million to Inventory and $3.2 million to Property, plant, and mine development. On October 28, 2020, the Company extended the Contract Mining Agreement for a one-year term for its mining activities at the Isabella Pearl project. The components of all other lease costs recognized within the Company’s Condensed Consolidated Statements of Operations are as follows: Three months ended September 30, Nine months ended September 30, Lease Cost Type Consolidated Statements of Operations Location 2020 2019 2020 2019 (in thousands) Operating lease cost General and administrative expenses $ 19 $ 20 $ 58 $ 61 Operating lease cost Production costs 18 19 54 57 Related party lease cost General and administrative expenses 13 14 35 35 Short term lease cost Production costs 48 77 130 381 Maturities of operating lease liabilities as of September 30, 2020 are as follows (in thousands) Year Ending December 31: 2020 $ 1,245 2021 175 2022 13 2023 - Thereafter - Total lease payments 1,433 Less imputed interest (11) Present value of minimum payments 1,422 Less: current portion (1,371) Long-term portion of minimum payments $ 51 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 5.75%. Scheduled remaining minimum annual payments as of September 30, 2020 are as follows (in thousands) Year Ending December 31: 2020 $ 122 2021 419 2022 13 2023 13 Thereafter 3 Total minimum obligations 570 Less: interest portion (21) Present value of minimum payments 549 Less: current portion (465) Long-term portion of minimum payments $ 84 The weighted average remaining lease term for the Company’s finance leases as of September 30, 2020 is 1.32 years. Supplemental cash flow information related to the Company’s operating and finance leases is as follows for the three and nine months ended September 30, 2020 and 2019: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,866 $ 355 $ 4,713 $ 1,987 Operating cash flows from finance leases 9 15 30 47 Investing cash flows from operating lease - 1,374 1,452 3,162 Financing cash flows from finance leases 112 107 332 311 |
Embedded Derivatives
Embedded Derivatives | 9 Months Ended |
Sep. 30, 2020 | |
Embedded Derivatives | |
Embedded Derivatives | 14. Embedded Derivatives Concentrate sales contracts contain embedded derivatives due to the provisional pricing terms for unsettled shipments. 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 metal forward prices. Please see Note 19 The following table summarizes the Company’s unsettled sales contracts as of September 30, 2020 with the quantities of metals under contract subject to final pricing occurring through November 2020: Gold Silver Copper Lead Zinc (ounces) (ounces) (tonnes) (tonnes) (tonnes) Under contract 1,914 194,345 275 1,420 3,303 Average forward price (per ounce or tonne) $ 1,930 $ 26.36 $ 6,629 $ 1,915 $ 2,441 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2020 | |
Stock-Based Compensation | |
Stock-Based Compensation | 15. Stock-Based Compensation The Gold Resource Corporation 2016 Equity Incentive Plan (the “Incentive Plan”) allows for the issuance of up to 5 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, any award outstanding under the any prior plan that is terminated, expired, forfeited, or canceled for any reason, will be available for grant under the Incentive Plan. During the nine months ended September 30, 2020 and 2019, a total of 93,205 and 121,060 RSUs vested, respectively, and shares were issued with an intrinsic value of $0.4 million and $0.4 million, respectively, and fair value of $0.5 million and $0.6 million, respectively. During the three months ended September 30, 2020 and 2019, a total of 58,133 and 106,256 RSUs vested, respectively, and shares were issued with an intrinsic value of $0.2 million and $0.4 million, respectively, and fair value of $0.3 million and $0.5 million, respectively. No stock options were exercised during the three and nine months ended September 30, 2020. During the nine months ended September 30, 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. No stock options were exercised during the three months ended September 30, 2019. Stock-based compensation expense for stock options and RSUs for the periods presented is as follows: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 (in thousands) (in thousands) Stock options $ 140 $ 264 $ 535 $ 1,231 Restricted stock units 165 103 640 350 Total $ 305 $ 367 $ 1,175 $ 1,581 The Company has a short-term incentive plan for its executive officers that provides for the grant of either cash or stock-based bonus awards payable upon achievement of specified performance metrics (the “STIP”). As of September 30, 2020 and December 31, 2019, nil has been accrued related to the STIP |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2020 | |
Shareholders' Equity | |
Shareholders' Equity | 16. Shareholders’ Equity 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”), which was subsequently renewed in June 2020. The ATM Agreement will remain in full force and effect until the earlier of (i) June 3, 2023 or (ii) the date that the ATM Agreement is terminated in accordance with its terms. An aggregate of 6,039,823 shares and 6,625,588 shares of the Company’s common stock were sold through the ATM Agreement during the nine months ended September 30, 2020 and 2019, for net proceeds to the Company, after deducting the Agent’s commissions and other expenses, of $18.7 million and $24.4 million, respectively. For the three months ended September 30, 2020 and 2019, an aggregate of 1,705,323 shares and 773,716 shares of the Company’s common stock were sold through the ATM Agreement for net proceeds to the Company, after deducting the Agent’s commissions and other expenses, of $6.8 million and $2.6 million, respectively. During the three months ended September 30, 2020, the Company issued 26,110 shares of its common stock at a price of $3.83 per share in connection with its purchase of the Golden Mile project. During the nine months ended September 30, 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. During the three and nine months ended September 30, 2020, the Company declared and paid common share common |
Other (Income) Expense, net
Other (Income) Expense, net | 9 Months Ended |
Sep. 30, 2020 | |
Other (Income) Expense, Net | |
Other Expense, Net | 17. Other (Income) Expense, net Other (income) expense, net, for the periods presented consisted of the following: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 (in thousands) (in thousands) Unrealized currency exchange loss $ 163 $ 406 $ 221 $ 294 Realized currency exchange (gain) loss (76) (69) (191) 103 Unrealized gain from gold and silver rounds/bullion, net (1) (716) (307) (1,175) (550) Increase in reserve for inventory - 478 - 478 Other expense 92 92 274 193 Total $ (537) $ 600 $ (871) $ 518 (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. For additional information regarding the Company’s fair value measurements and investments, please see Note 19. |
Net Income per Common Share
Net Income per Common Share | 9 Months Ended |
Sep. 30, 2020 | |
Net Income per Common Share | |
Net Income per Common Share | 18. Net Income per Common Share Basic earnings per common share is calculated based on the weighted average number of common shares outstanding for the period. Diluted earnings per common share is calculated based on the assumption that stock options and other dilutive securities outstanding, which have an exercise price less than the average market price of the Company’s common shares 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 of the Company’s RSUs are considered to be dilutive in periods with net income. 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 3.6 million and 3.9 million shares of common stock at weighted average exercise prices of $8.97 and $9.73 were outstanding at September 30, 2020 and 2019, 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 are anti-dilutive. Basic and diluted net income per common share is calculated as follows: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Net income (in thousands) $ 5,001 $ 2,978 $ 68 $ 5,658 Basic weighted average shares of common stock outstanding 70,641,938 65,495,958 68,896,059 63,001,178 Dilutive effect of share-based awards 402,590 300,941 393,290 334,953 Diluted weighted average common shares outstanding 71,044,528 65,796,899 69,289,349 63,336,131 Net income per share: Basic and Diluted $ 0.07 $ 0.05 $ - $ 0.09 |
Fair Value Measurement
Fair Value Measurement | 9 Months Ended |
Sep. 30, 2020 | |
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 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and Level 3 Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). 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 table sets forth certain of the Company’s assets and liabilities measured at fair value by level within the fair value hierarchy as of September 30, 2020 and December 31, 2019: 2020 2019 Input Hierarchy Level (in thousands) Cash and cash equivalents $ 31,313 $ 11,076 Level 1 Gold and silver rounds/bullion $ 5,241 $ 4,265 Level 1 Accounts receivable, net $ 4,777 $ 8,362 Level 2 Loans payable $ 1,005 $ 1,661 Level 2 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 4 Accounts receivable, net 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 September 30, 2020 and December 31, 2019, the Company had unrealized losses of $0.1 million and unrealized gains of $0.2 million, respectively, included in its accounts receivable on the accompanying Condensed Consolidated Balance Sheets related to mark-to-market adjustments. Please see Note 14 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 11 Gains and losses related to changes in the fair value of these financial instruments were included in the Company’s Condensed Consolidated Statements of Operations as shown in the following table: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Statement of Operations Classification (in thousands) Realized/unrealized derivative gain, net $ 550 $ 784 $ 18 $ 2,149 Sales, net Realized/unrealized gold and silver rounds/bullion gain, net $ 679 $ 306 $ 1,136 $ 545 Other expense, net Realized/Unrealized Derivatives The following tables summarize the Company’s realized/unrealized derivatives for the periods presented (in thousands) Gold Silver Copper Lead Zinc Total Three months ended September 30, 2020 Realized gain $ 132 $ 339 $ 89 $ 16 $ 77 $ 653 Unrealized loss (11) (47) (24) (10) (11) (103) Total realized/unrealized derivatives, net $ 121 $ 292 $ 65 $ 6 $ 66 $ 550 Gold Silver Copper Lead Zinc Total Three months ended September 30, 2019 Realized gain (loss) $ 23 $ 33 $ 52 $ (78) $ (275) $ (245) Unrealized gain 181 378 18 200 252 1,029 Total realized/unrealized derivatives, net $ 204 $ 411 $ 70 $ 122 $ (23) $ 784 Gold Silver Copper Lead Zinc Total Nine months ended September 30, 2020 Realized gain (loss) $ 651 $ 451 $ 20 $ (143) $ (729) $ 250 Unrealized (loss) gain (209) (290) (9) 41 235 (232) Total realized/unrealized derivatives, net $ 442 $ 161 $ 11 $ (102) $ (494) $ 18 Gold Silver Copper Lead Zinc Total Nine months ended September 30, 2019 Realized gain (loss) $ 195 $ 129 $ 120 $ (97) $ 1,022 $ 1,369 Unrealized gain 145 318 65 123 129 780 Total realized/unrealized derivatives, net $ 340 $ 447 $ 185 $ 26 $ 1,151 $ 2,149 |
Supplementary Cash Flow Informa
Supplementary Cash Flow Information | 9 Months Ended |
Sep. 30, 2020 | |
Supplementary Cash Flow Information | |
Supplementary Cash Flow Information | 20. Supplementary Cash Flow Information Other operating adjustments and write-downs within the net cash provided by operations on the Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2020 and 2019 consisted of the following: 2020 2019 (in thousands) Unrealized gain on gold and silver rounds/bullion $ (1,175) $ (550) Unrealized foreign currency exchange loss 221 294 Increase in inventory reserve - 478 Other 139 92 Total other operating adjustments $ (815) $ 314 |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2020 | |
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. Inter-company 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 Three months ended September 30, 2020 Revenue $ 26,435 $ 15,851 $ - $ 42,286 Exploration expense 982 780 37 1,799 Net income (loss) 4,716 3,869 (3,584) 5,001 Capital expenditures 3,066 564 4 3,634 Mexico Nevada Corporate and Other Consolidated Three months ended September 30, 2019 Revenue $ 34,086 $ 5,980 $ - $ 40,066 Exploration expense 775 322 32 1,129 Net income (loss) 5,426 (480) (1,968) 2,978 Capital expenditures 3,870 6,056 12 9,938 Mexico Nevada Corporate and Other Consolidated Nine months ended September 30, 2020 Revenue $ 61,105 $ 30,284 $ - $ 91,389 Exploration expense 2,077 1,373 55 3,505 Net income (loss) 2,481 2,192 (4,605) 68 Capital expenditures (1) 5,826 6,341 45 12,212 Mexico Nevada Corporate and Other Consolidated Nine months ended September 30, 2019 Revenue $ 88,498 $ 7,520 $ - $ 96,018 Exploration expense 2,370 770 70 3,210 Net income (loss) 12,785 (454) (6,673) 5,658 Capital expenditures (2) 13,205 17,969 12 31,186 (1) Includes a decrease in capital expenditures in accounts payable of $2,207 and non-cash additions of $1,504 ; consolidated capital expenditures on a cash basis were $12,915 . (2) Includes an increase in capital expenditures in accounts payable of $158 and non-cash additions of $1,862 ; consolidated capital expenditures on a cash basis were $29,166 . Total asset balances, excluding intercompany balances, at September 30, 2020 and December 31, 2019 are as follows: 2020 2019 (in thousands) Mexico $ 91,752 $ 98,718 Nevada 90,494 84,669 Corporate and Other 21,217 9,625 Consolidated $ 203,463 $ 193,012 |
Covid-19
Covid-19 | 9 Months Ended |
Sep. 30, 2020 | |
Covid-19 | |
Covid-19 | 22. COVID-19 On March 11, 2020, the World Health Organization declared the outbreak of a respiratory disease caused by a new novel coronavirus (“COVID-19”) as a “pandemic”. On March 31, 2020, the Mexican government issued a national health emergency with an immediate suspension order for all “non-essential” public and private sector business (which included mining) to mitigate the spread and transmission of the COVID-19. As a result, the Company suspended its Mexico operations and production on April 1, 2020. The Mexican government designated mining as an essential business in mid-May 2020 and as a result we were given approval to restart our operations on May 27, 2020. After a ramp-up period, the Company recommenced operations with appropriate safety measures in place to guard against and mitigate the virus and its spread. The Isabella Pearl Mine in Nevada has continued to operate at full capacity during the pandemic. Precious metal mining is considered essential to support critical infrastructure under guidelines from the U.S. Department of Homeland Security and the State of Nevada. The Company has in place safety measures to guard against and mitigate the virus and its spread. As of the date of the issuance of these unaudited Condensed Consolidated Financial Statements, there have been no other significant impacts, including impairments, to the Company’s operations and financial statements. However, the long-term impact of the COVID-19 outbreak on the Company’s results of operations, financial position and cash flows will depend on future developments, including the duration and spread of the outbreak and related advisories and restrictions. These developments and the impact of COVID-19 on the financial markets and the overall economy are highly uncertain and cannot be predicted. If the financial markets and/or the overall economy are impacted for an extended period, the Company’s results of operations, financial position and cash flows may be materially adversely affected. The Company is not able to estimate the duration of the pandemic and potential impact on its business if disruptions or delays in business developments and shipments of product occur. In addition, a severe prolonged economic downturn could result in a variety of risks to the business, including a decreased ability to raise additional capital when and if needed on acceptable terms, if at all. As the situation continues to evolve, the Company will continue to closely monitor market conditions and respond accordingly. The Company has completed various scenario planning analyses to consider potential impacts of COVID-19 on its business, including volatility in commodity prices, temporary disruptions and/or curtailments of operating activities (voluntary or involuntary). To provide additional flexibility to respond to potential downside scenarios, the Company utilized the ATM program that was previously in place to raise approximately $ 11.9 million through the sale of common stock during the first and second quarters of 2020 to provide additional financial flexibility. The Company believes that financing will be sufficient for the foreseeable future, although there is no assurance that will be the case |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2020 | |
Subsequent Event | |
Subsequent Event | 23. Subsequent Event On October 5, 2020, the Company announced its intention to spin-off its Nevada Mining Unit to shareholders as a separate publicly traded company. The separation will be completed by way of a pro rata distribution of all the outstanding shares of Fortitude Gold Corporation (“Fortitude”) common stock to the Company’s shareholders. Fortitude is a Colorado corporation formed by the Company to complete the spin-off. Following completion of the spin-off, the Company would hold all of the assets and related liabilities of the Oaxaca Mining Unit and Fortitude would hold all of the Nevada assets and related liabilities. The spin-off does not require the approval of the Company’s shareholders, which is expected to be tax-free to the shareholders. The transaction is subject to certain conditions, including the final approval by the Company’s Board of Directors and the receipt of an effective date for the Form S-1 registration statement filed by Fortitude on October 19, 2020 with the Securities and Exchange Commission. The transaction is targeted to be completed by year-end 2020 or in the first quarter of 2021. |
Basis of Preparation of Finan_2
Basis of Preparation of Financial Statements (Policy) | 9 Months Ended |
Sep. 30, 2020 | |
Basis of Preparation of Financial Statements | |
Basis of Presentation | The interim Condensed Consolidated Financial Statements (“interim financial statements”) of Gold Resource Corporation and its subsidiaries (collectively, the “Company”) are unaudited and have been prepared in accordance with the rules of the Securities and Exchange Commission for interim statements. Certain information and footnote disclosures required by United States Generally Accepted Accounting Principles (“U.S. GAAP”) have been condensed or omitted as permitted by such rules, although the Company believes that the disclosures included are adequate to make the information presented not misleading. In the opinion of management, all adjustments (including normal recurring adjustments) and disclosures necessary for a fair presentation of these interim financial statements have been included. The results reported in these interim financial statements are not necessarily indicative of the results that may be reported for the entire year. These interim financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2019 included in the Company’s annual report on Form 10-K. The year-end balance sheet data was derived from the audited financial statements. Unless otherwise noted, there have been no material changes to the footnotes from those accompanying the audited consolidated financial statements contained in the Company’s annual report on Form 10-K. Certain items in the prior period’s Condensed Consolidated Financial Statements have been reclassified to conform to the current presentation. |
Recently Adopted Accounting Pro
Recently Adopted Accounting Pronouncements (Policy) | 9 Months Ended |
Sep. 30, 2020 | |
Recently Adopted Accounting Standards | |
Recently Adopted Accounting Pronouncements | In June 2016, the Financial Accounting Standards Board issued ASU No. 2016-13, "Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments”. The standard modifies the measurement approach for credit losses on financial instruments, including trade receivables, from an incurred loss method to a current expected credit loss method. The standard requires the measurement of expected credit losses to be based on relevant information, including historical experiences, current conditions and a forecast that is supportable. The Company adopted the new standard on January 1, 2020. The adoption of the standard did not have any effect on the Company’s Condensed Consolidated Financial Statements. |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue | |
Revenue from the sale of dore and concentrate | Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 (in thousands) (in thousands) Doré sales, net Gold $ 17,449 $ 7,399 $ 35,663 $ 12,192 Silver 878 619 2,232 1,670 Less: Refining charges (170) (39) (436) (138) Total doré sales, net 18,157 7,979 37,459 13,724 Concentrate sales Gold 5,211 7,767 13,894 19,072 Silver 6,857 6,370 14,638 15,673 Copper 2,911 2,502 6,470 7,237 Lead 3,501 4,480 8,730 11,874 Zinc 10,894 13,875 25,110 36,998 Less: Treatment and refining charges (5,795) (3,691) (14,930) (10,709) Total concentrate sales, net 23,579 31,303 53,912 80,145 Realized/unrealized embedded derivative, net 550 784 18 2,149 Total sales, net $ 42,286 $ 40,066 $ 91,389 $ 96,018 |
Gold and Silver Rounds_Bullion
Gold and Silver Rounds/Bullion (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Gold and Silver Rounds/Bullion | |
Schedule of Company's Holdings | 2020 2019 Ounces Per Ounce Amount Ounces Per Ounce Amount (in thousands) (in thousands) Gold 1,816 $ 1,887 $ 3,426 1,866 $ 1,515 $ 2,827 Silver 76,481 $ 23.73 1,815 79,662 $ 18.05 1,438 Total holdings $ 5,241 $ 4,265 |
Inventories, net (Tables)
Inventories, net (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Inventories | |
Summary of Inventories | 2020 2019 (in thousands) Stockpiles - underground mine $ 414 $ 3,968 Stockpiles - open pit mine 615 833 Leach pad 16,261 9,103 Concentrates 1,716 1,340 Doré (1) 1,032 1,581 Subtotal - product inventories 20,038 16,825 Materials and supplies (2) 6,939 7,306 Total $ 26,977 $ 24,131 (1) Net of reserve of $368 and $478 at September 30, 2020 and December 31, 2019, respectively. (2) Net of reserve for obsolescence of $1,264 as of September 30, 2020 and December 31, 2019. |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Prepaid Expenses And Other Current Assets | |
Schedule of prepaid and other assets | 2020 2019 (in thousands) Advances to suppliers $ 635 $ 109 Prepaid insurance 1,121 1,333 IVA taxes receivable, net 140 245 Prepaid royalties - 127 Other current assets 272 218 Total $ 2,168 $ 2,032 |
Property, Plant and Mine Deve_2
Property, Plant and Mine Development, net (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Property, Plant and Mine Development, net | |
Schedule of property, plant and mine development | 2020 2019 (in thousands) Asset retirement costs $ 4,816 $ 3,412 Construction-in-progress (1) 3,686 11,965 Furniture and office equipment 2,140 2,087 Leach pad and ponds 5,649 5,649 Land 242 242 Light vehicles and other mobile equipment 2,601 2,553 Machinery and equipment 45,005 43,364 Mill facilities and infrastructure 32,004 31,408 Mineral interests and mineral rights 18,878 18,228 Mine Development (2) 106,181 90,089 Software and licenses 1,659 1,659 Subtotal (3) (4) 222,861 210,656 Accumulated depreciation and amortization (105,452) (85,397) Total $ 117,409 $ 125,259 (1) Includes Nevada construction-in-progress and pre-production stripping costs of $0.2 million and $9.6 million at September 30, 2020 and December 31, 2019, respectively. Mexico construction-in-progress was $3.5 million and $2.4 million at September 30, 2020 and December 31, 2019, respectively. (2) Pearl deposit mine development of $13.3 million was put into service on April 1, 2020. (3) Includes $1.8 million of assets recorded under finance leases. Please see Note 13 for additional information. (4) Includes accrued capital expenditures of $ 1.6 million and $3.8 million at September 30, 2020 and December 31, 2019, respectively. |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Accrued Expenses and Other Current Liabilities | |
Schedule of Accrued Expenses and Other Current Liabilities | 2020 2019 (in thousands) Accrued insurance $ 653 $ 452 Accrued royalty payments 2,410 2,212 Dividends payable 238 219 Other payables 453 483 Total $ 3,754 $ 3,366 |
Reclamation and Remediation (Ta
Reclamation and Remediation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Reclamation And Remediation | |
Changes in Reclamation and Remediation | 2020 2019 (in thousands) Reclamation liabilities – balance at beginning of period $ 2,014 $ 2,009 Changes in estimate - (82) Foreign currency exchange (gain) loss (325) 87 Reclamation liabilities – balance at end of period 1,689 2,014 Asset retirement obligation – balance at beginning of period 3,591 1,289 Changes in estimate 1,404 2,172 Accretion 207 102 Foreign currency exchange (gain) loss (181) 28 Asset retirement obligation – balance at end of period 5,021 3,591 Total period end balance $ 6,710 $ 5,605 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases | |
Schedule of lease cost | Three months ended September 30, Nine months ended September 30, Lease Cost Type Consolidated Statements of Operations Location 2020 2019 2020 2019 (in thousands) Operating lease cost General and administrative expenses $ 19 $ 20 $ 58 $ 61 Operating lease cost Production costs 18 19 54 57 Related party lease cost General and administrative expenses 13 14 35 35 Short term lease cost Production costs 48 77 130 381 |
Schedule of future minimum operating lease payments - ASC 842 | Year Ending December 31: 2020 $ 1,245 2021 175 2022 13 2023 - Thereafter - Total lease payments 1,433 Less imputed interest (11) Present value of minimum payments 1,422 Less: current portion (1,371) Long-term portion of minimum payments $ 51 |
Schedule of minimum finance lease payments - ASC 842 | Year Ending December 31: 2020 $ 122 2021 419 2022 13 2023 13 Thereafter 3 Total minimum obligations 570 Less: interest portion (21) Present value of minimum payments 549 Less: current portion (465) Long-term portion of minimum payments $ 84 |
Schedule of supplemental cash flow information | Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,866 $ 355 $ 4,713 $ 1,987 Operating cash flows from finance leases 9 15 30 47 Investing cash flows from operating lease - 1,374 1,452 3,162 Financing cash flows from finance leases 112 107 332 311 |
Embedded Derivatives (Tables)
Embedded Derivatives (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Embedded Derivatives | |
Summary of unsettled sales contracts | Gold Silver Copper Lead Zinc (ounces) (ounces) (tonnes) (tonnes) (tonnes) Under contract 1,914 194,345 275 1,420 3,303 Average forward price (per ounce or tonne) $ 1,930 $ 26.36 $ 6,629 $ 1,915 $ 2,441 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Stock-Based Compensation | |
Stock-based compensation expense | Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 (in thousands) (in thousands) Stock options $ 140 $ 264 $ 535 $ 1,231 Restricted stock units 165 103 640 350 Total $ 305 $ 367 $ 1,175 $ 1,581 |
Other (Income) Expense, net (Ta
Other (Income) Expense, net (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Other (Income) Expense, Net | |
Schedule of Other (Income) Expense, net | Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 (in thousands) (in thousands) Unrealized currency exchange loss $ 163 $ 406 $ 221 $ 294 Realized currency exchange (gain) loss (76) (69) (191) 103 Unrealized gain from gold and silver rounds/bullion, net (1) (716) (307) (1,175) (550) Increase in reserve for inventory - 478 - 478 Other expense 92 92 274 193 Total $ (537) $ 600 $ (871) $ 518 (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. For additional information regarding the Company’s fair value measurements and investments, please see Note 19. |
Net Income per Common Share (Ta
Net Income per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Net Income per Common Share | |
Net Income Per Share | Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Net income (in thousands) $ 5,001 $ 2,978 $ 68 $ 5,658 Basic weighted average shares of common stock outstanding 70,641,938 65,495,958 68,896,059 63,001,178 Dilutive effect of share-based awards 402,590 300,941 393,290 334,953 Diluted weighted average common shares outstanding 71,044,528 65,796,899 69,289,349 63,336,131 Net income per share: Basic and Diluted $ 0.07 $ 0.05 $ - $ 0.09 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Measurement | |
Assets measured at fair value by level within fair value hierarchy | 2020 2019 Input Hierarchy Level (in thousands) Cash and cash equivalents $ 31,313 $ 11,076 Level 1 Gold and silver rounds/bullion $ 5,241 $ 4,265 Level 1 Accounts receivable, net $ 4,777 $ 8,362 Level 2 Loans payable $ 1,005 $ 1,661 Level 2 |
Gains and Losses Related to Changes in Fair Value | Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Statement of Operations Classification (in thousands) Realized/unrealized derivative gain, net $ 550 $ 784 $ 18 $ 2,149 Sales, net Realized/unrealized gold and silver rounds/bullion gain, net $ 679 $ 306 $ 1,136 $ 545 Other expense, net |
Realized and Unrealized Gain Losses on Derivatives | The following tables summarize the Company’s realized/unrealized derivatives for the periods presented (in thousands) Gold Silver Copper Lead Zinc Total Three months ended September 30, 2020 Realized gain $ 132 $ 339 $ 89 $ 16 $ 77 $ 653 Unrealized loss (11) (47) (24) (10) (11) (103) Total realized/unrealized derivatives, net $ 121 $ 292 $ 65 $ 6 $ 66 $ 550 Gold Silver Copper Lead Zinc Total Three months ended September 30, 2019 Realized gain (loss) $ 23 $ 33 $ 52 $ (78) $ (275) $ (245) Unrealized gain 181 378 18 200 252 1,029 Total realized/unrealized derivatives, net $ 204 $ 411 $ 70 $ 122 $ (23) $ 784 Gold Silver Copper Lead Zinc Total Nine months ended September 30, 2020 Realized gain (loss) $ 651 $ 451 $ 20 $ (143) $ (729) $ 250 Unrealized (loss) gain (209) (290) (9) 41 235 (232) Total realized/unrealized derivatives, net $ 442 $ 161 $ 11 $ (102) $ (494) $ 18 Gold Silver Copper Lead Zinc Total Nine months ended September 30, 2019 Realized gain (loss) $ 195 $ 129 $ 120 $ (97) $ 1,022 $ 1,369 Unrealized gain 145 318 65 123 129 780 Total realized/unrealized derivatives, net $ 340 $ 447 $ 185 $ 26 $ 1,151 $ 2,149 |
Supplementary Cash Flow Infor_2
Supplementary Cash Flow Information (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Supplementary Cash Flow Information | |
Schedule of Supplementary Cash Flow Information | 2020 2019 (in thousands) Unrealized gain on gold and silver rounds/bullion $ (1,175) $ (550) Unrealized foreign currency exchange loss 221 294 Increase in inventory reserve - 478 Other 139 92 Total other operating adjustments $ (815) $ 314 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting | |
Schedule of financial information relating to the Company segments | Mexico Nevada Corporate and Other Consolidated Three months ended September 30, 2020 Revenue $ 26,435 $ 15,851 $ - $ 42,286 Exploration expense 982 780 37 1,799 Net income (loss) 4,716 3,869 (3,584) 5,001 Capital expenditures 3,066 564 4 3,634 Mexico Nevada Corporate and Other Consolidated Three months ended September 30, 2019 Revenue $ 34,086 $ 5,980 $ - $ 40,066 Exploration expense 775 322 32 1,129 Net income (loss) 5,426 (480) (1,968) 2,978 Capital expenditures 3,870 6,056 12 9,938 Mexico Nevada Corporate and Other Consolidated Nine months ended September 30, 2020 Revenue $ 61,105 $ 30,284 $ - $ 91,389 Exploration expense 2,077 1,373 55 3,505 Net income (loss) 2,481 2,192 (4,605) 68 Capital expenditures (1) 5,826 6,341 45 12,212 Mexico Nevada Corporate and Other Consolidated Nine months ended September 30, 2019 Revenue $ 88,498 $ 7,520 $ - $ 96,018 Exploration expense 2,370 770 70 3,210 Net income (loss) 12,785 (454) (6,673) 5,658 Capital expenditures (2) 13,205 17,969 12 31,186 (1) Includes a decrease in capital expenditures in accounts payable of $2,207 and non-cash additions of $1,504 ; consolidated capital expenditures on a cash basis were $12,915 . (2) Includes an increase in capital expenditures in accounts payable of $158 and non-cash additions of $1,862 ; consolidated capital expenditures on a cash basis were $29,166 . |
Schedule of asset balances, excluding investments and intercompany | 2020 2019 (in thousands) Mexico $ 91,752 $ 98,718 Nevada 90,494 84,669 Corporate and Other 21,217 9,625 Consolidated $ 203,463 $ 193,012 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Realized/unrealized embedded derivative, net | $ 550 | $ 784 | $ 18 | $ 2,149 |
Total sales, net | 42,286 | 40,066 | 91,389 | 96,018 |
Dore | ||||
Disaggregation of Revenue [Line Items] | ||||
Less: Treatment and refining charges | (170) | (39) | (436) | (138) |
Total sales, net | 18,157 | 7,979 | 37,459 | 13,724 |
Gold Dore | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales, net | 17,449 | 7,399 | 35,663 | 12,192 |
Silver Dore | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales, net | 878 | 619 | 2,232 | 1,670 |
Concentrate | ||||
Disaggregation of Revenue [Line Items] | ||||
Less: Treatment and refining charges | (5,795) | (3,691) | (14,930) | (10,709) |
Total sales, net | 23,579 | 31,303 | 53,912 | 80,145 |
Gold Concentrate | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales, net | 5,211 | 7,767 | 13,894 | 19,072 |
Silver Concentrate | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales, net | 6,857 | 6,370 | 14,638 | 15,673 |
Copper Concentrate | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales, net | 2,911 | 2,502 | 6,470 | 7,237 |
Lead Concentrate | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales, net | 3,501 | 4,480 | 8,730 | 11,874 |
Zinc Concentrate | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales, net | $ 10,894 | $ 13,875 | $ 25,110 | $ 36,998 |
Gold and Silver Rounds_Bullio_2
Gold and Silver Rounds/Bullion (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020USD ($)oz$ / oz | Sep. 30, 2020USD ($)oz$ / oz | Dec. 31, 2019USD ($)oz$ / oz | |
Schedule of Investments [Line Items] | |||
Total carrying value | $ | $ 5,241,000 | $ 5,241,000 | $ 4,265,000 |
Gold | |||
Schedule of Investments [Line Items] | |||
Ounces sold | oz | 32 | 32 | |
Ounces | oz | 1,816 | 1,816 | 1,866 |
Carrying value per ounce | $ / oz | 1,887 | 1,887 | 1,515 |
Total carrying value | $ | $ 3,426,000 | $ 3,426,000 | $ 2,827,000 |
Silver | |||
Schedule of Investments [Line Items] | |||
Ounces sold | oz | 3,000 | 3,000 | |
Ounces | oz | 76,481 | 76,481 | 79,662 |
Carrying value per ounce | $ / oz | 23.73 | 23.73 | 18.05 |
Total carrying value | $ | $ 1,815,000 | $ 1,815,000 | $ 1,438,000 |
Gold And Silver | |||
Schedule of Investments [Line Items] | |||
Other Income | $ | $ 100,000 | $ 100,000 | $ 0 |
Inventories, net (Details)
Inventories, net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | ||
Stockpiles - underground mine | $ 414 | $ 414 | $ 3,968 | |||
Stockpiles - open pit mine | 615 | 615 | 833 | |||
Leach pad | 16,261 | 16,261 | 9,103 | |||
Concentrates | 1,716 | 1,716 | 1,340 | |||
Dore | [1] | 1,032 | 1,032 | 1,581 | ||
Subtotal - product inventories | 20,038 | 20,038 | 16,825 | |||
Materials and supplies | [2] | 6,939 | 6,939 | 7,306 | ||
Total | 26,977 | 26,977 | 24,131 | |||
Low-grade ore stockpile inventory | 5,200 | 5,200 | 4,700 | |||
Inventory Write-down | $ 1,600 | 3,600 | $ 1,600 | |||
Dore | ||||||
Inventory reserve | 368 | 368 | 478 | |||
Materials And Supplies [Member] | ||||||
Inventory reserve | $ 1,264 | $ 1,264 | $ 1,264 | |||
[1] | Net of reserve of $368 and $478 at September 30, 2020 and December 31, 2019, respectively. | |||||
[2] | Net of reserve for obsolescence of $1,264 as of September 30, 2020 and December 31, 2019. |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income tax (benefit) expense | $ 1,974,000 | $ 2,417,000 | $ (833,000) | $ 4,949,000 |
Effective tax rate | 21.00% | |||
MITL corporate income tax rate | 37.50% | 37.50% | ||
MITL corporate income tax rate excluding mining tax | 30.00% | |||
Mining tax rate | 7.50% | |||
Minerals Tax Rate | 5.00% | |||
Withholding tax on dividends | 10.00% | |||
Dividend withholding tax between countries | 5.00% | |||
Liability for uncertain tax positions | $ 0 | $ 0 | ||
GILTI Effective Tax Rate Above U.S. Tax Rate | 90.00% | |||
GILTI Effective Tax Rate Percent Above U.S. Tax Rate | 18.90% | |||
Global Intangible Low Taxed Income [Member] | ||||
Income tax (benefit) expense | $ 900,000 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Prepaid Expenses And Other Current Assets | ||
Advances to suppliers | $ 635 | $ 109 |
Prepaid insurance | 1,121 | 1,333 |
IVA taxes receivable, net | 140 | 245 |
Prepaid royalties | 127 | |
Other current assets | 272 | 218 |
Total | $ 2,168 | $ 2,032 |
Property, Plant and Mine Deve_3
Property, Plant and Mine Development, net - Summary of Property, Equipment and Mine Development (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Apr. 01, 2020 | Dec. 31, 2019 | |
Property, equipment and mine development - net | ||||
Property and equipment, gross | [1],[2] | $ 222,861 | $ 210,656 | |
Accumulated depreciation and amortization | (105,452) | (85,397) | ||
Total property, equipment and mine development - net | 117,409 | 125,259 | ||
Accrued capital expenditures | 1,600 | 3,800 | ||
Asset retirement costs | ||||
Property, equipment and mine development - net | ||||
Property and equipment, gross | 4,816 | 3,412 | ||
Construction-in-progress | ||||
Property, equipment and mine development - net | ||||
Property and equipment, gross | [3] | 3,686 | 11,965 | |
Furniture and office equipment | ||||
Property, equipment and mine development - net | ||||
Property and equipment, gross | 2,140 | 2,087 | ||
Leach pad and ponds | ||||
Property, equipment and mine development - net | ||||
Property and equipment, gross | 5,649 | 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 | 2,601 | 2,553 | ||
Machinery and equipment | ||||
Property, equipment and mine development - net | ||||
Property and equipment, gross | 45,005 | 43,364 | ||
Mill facilities and infrastructure | ||||
Property, equipment and mine development - net | ||||
Property and equipment, gross | 32,004 | 31,408 | ||
Mineral interests and mineral rights | ||||
Property, equipment and mine development - net | ||||
Property and equipment, gross | 18,878 | 18,228 | ||
Mine development | ||||
Property, equipment and mine development - net | ||||
Property and equipment, gross | 106,181 | 90,089 | ||
Asset and development costs | $ 13,300 | |||
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 | 1,800 | ||
Mexico | ||||
Property, equipment and mine development - net | ||||
Asset and development costs | 3,500 | 2,400 | ||
Nevada | ||||
Property, equipment and mine development - net | ||||
Asset and development costs | $ 200 | $ 9,600 | ||
[1] | Includes $1.8 million of assets recorded under finance leases. Please see Note 13 for additional information. | |||
[2] | Includes accrued capital expenditures of $ 1.6 million and $3.8 million at September 30, 2020 and December 31, 2019, respectively. | |||
[3] | Includes Nevada construction-in-progress and pre-production stripping costs of $0.2 million and $9.6 million at September 30, 2020 and December 31, 2019, respectively. Mexico construction-in-progress was $3.5 million and $2.4 million at September 30, 2020 and December 31, 2019, respectively. |
Property, Plant and Mine Deve_4
Property, Plant and Mine Development, net - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Property, Plant and Mine Development, net | ||||
Depreciation and amortization expense | $ 7,400 | $ 6,300 | $ 19,953 | $ 13,881 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Accrued Expenses and Other Current Liabilities | ||
Accrued insurance | $ 653 | $ 452 |
Accrued royalty payments | 2,410 | 2,212 |
Dividends payable | 238 | 219 |
Other payables | 453 | 483 |
Total | $ 3,754 | $ 3,366 |
Reclamation and Remediation (De
Reclamation and Remediation (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Asset Retirement Obligation, Roll Forward Analysis | ||
Reclamation liabilities - balance at beginning of period | $ 2,014 | $ 2,009 |
Changes in estimate | (82) | |
Foreign currency exchange (gain) loss | (325) | 87 |
Reclamation liabilities - balance at end of period | 1,689 | 2,014 |
Asset retirement obligation - balance at beginning of period | 3,591 | 1,289 |
Changes in estimate | 1,404 | 2,172 |
Accretion | 207 | 102 |
Foreign currency exchange (gain) loss | (181) | 28 |
Asset retirement obligation - balance at end of period | 5,021 | 3,591 |
Total period end balance | 6,710 | 5,605 |
Aguila Project | ||
Asset Retirement Obligation, Roll Forward Analysis | ||
Asset retirement obligation - balance at beginning of period | 1,100 | |
Asset retirement obligation - balance at end of period | 1,000 | 1,100 |
Isabella Pearl Project | ||
Asset Retirement Obligation, Roll Forward Analysis | ||
Asset retirement obligation - balance at beginning of period | 2,500 | |
Asset retirement obligation - balance at end of period | $ 4,000 | $ 2,500 |
Reclamation and Remediation - N
Reclamation and Remediation - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Off Balance Arrangement | $ 5,200 | $ 6,700 | |
Surety Bond | 9,200 | ||
Asset Retirement Obligation | $ 5,021 | $ 3,591 | $ 1,289 |
Reclamation and remediation discount rate | 8.00% | 8.00% | |
Aguila Project | |||
Asset Retirement Obligation | $ 1,000 | $ 1,100 | |
Isabella Pearl Project | |||
Asset Retirement Obligation | $ 4,000 | $ 2,500 |
Loans Payable (Details)
Loans Payable (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||
Periodic payment | $ 80 | |
Outstanding loan | 1,000 | $ 1,700 |
2020 | 200 | |
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 | Sep. 30, 2020USD ($) |
Commitments and Contingencies | |
Equipment purchase commitments | $ 0.7 |
Remainder of 2020 payments Contract Mining Agreement | $ 0.6 |
Leases - Quantitative informati
Leases - Quantitative information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Lessee, Lease, Description [Line Items] | ||||
Option to renew | true | |||
Weighted average remaining lease term for operating leases | 3 months 7 days | 3 months 7 days | ||
Weighted average discount rate used to measure operating lease liabilities | 4.48% | 4.48% | ||
Operating lease, existence of material residual value guarantees | false | |||
Inventory | ||||
Lessee, Lease, Description [Line Items] | ||||
Capitalized variable lease costs | $ 1.8 | $ 0.3 | $ 4.6 | $ 1.8 |
Property, plant and mine development | ||||
Lessee, Lease, Description [Line Items] | ||||
Capitalized variable lease costs | $ 1.4 | $ 1.5 | $ 3.2 | |
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Renewal term | 2 years | 2 years | ||
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Renewal term | 1 year | 1 year |
Leases - Operating Lease Costs
Leases - Operating Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
General and administrative expenses | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease cost | $ 19 | $ 20 | $ 58 | $ 61 |
Related party lease cost | 13 | 14 | 35 | 35 |
Production costs | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease cost | 18 | 19 | 54 | 57 |
Short-term lease cost | $ 48 | $ 77 | $ 130 | $ 381 |
Leases - Maturities of operatin
Leases - Maturities of operating lease liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Leases | ||
2020 | $ 1,245 | |
2021 | 175 | |
2022 | 13 | |
Total lease payments | 1,433 | |
Less imputed interest | (11) | |
Present value of minimum payments | 1,422 | |
Less: current portion | (1,371) | $ (7,287) |
Long-term portion of minimum payments | $ 51 | $ 160 |
Leases - Quantitative informa_2
Leases - Quantitative information Finance lease (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Lessee, Lease, Description [Line Items] | |
Weighted average discount rate for finance leases | 5.75% |
Monthly principal, interest and sales tax payments | $ 40 |
Finance Lease, Weighted Average Remaining Lease Term | 1 year 3 months 25 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 | Sep. 30, 2020 | Dec. 31, 2019 |
Finance Lease Liabilities, Payments, Due [Abstract] | ||
2020 | $ 122 | |
2021 | 419 | |
2022 | 13 | |
2023 | 13 | |
Thereafter | 3 | |
Total minimum obligations | 570 | |
Less: interest portion | (21) | |
Present value of minimum payments | 549 | |
Less: current portion | (465) | $ (446) |
Long-term portion of minimum payments | $ 84 | $ 435 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Leases | ||||
Operating cash flows from operating leases | $ 1,866 | $ 355 | $ 4,713 | $ 1,987 |
Operating cash flows from finance leases | 9 | 15 | 30 | 47 |
Investing cash flows from operating lease | 1,374 | 1,452 | 3,162 | |
Financing cash flows from finance leases | $ 112 | $ 107 | $ 332 | $ 311 |
Embedded Derivatives (Details)
Embedded Derivatives (Details) | 9 Months Ended |
Sep. 30, 2020$ / t$ / ozozt | |
Gold | |
Embedded Derivative [Line Items] | |
Under contract | oz | 1,914 |
Average forward price | $ / oz | 1,930 |
Silver | |
Embedded Derivative [Line Items] | |
Under contract | oz | 194,345 |
Average forward price | $ / oz | 26.36 |
Copper | |
Embedded Derivative [Line Items] | |
Under contract | t | 275 |
Average forward price | $ / t | 6,629 |
Lead | |
Embedded Derivative [Line Items] | |
Under contract | t | 1,420 |
Average forward price | $ / t | 1,915 |
Zinc | |
Embedded Derivative [Line Items] | |
Under contract | t | 3,303 |
Average forward price | $ / t | 2,441 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Equity Incentive plan shares for issuance authorized | 5,000,000 | 5,000,000 | |||
Weighted Average Exercise Price, Exercised | $ 3.95 | ||||
Number of shares exercised on a net exercise basis | 250,000 | ||||
Number of shares exercised and delivered | 44,698 | ||||
Number of shares exercised for cash | 24,750 | ||||
Number of stock options exercised | 0 | 0 | 0 | 274,750 | |
Accrued expenses and other current liabilities | $ 3,754 | $ 3,754 | $ 3,366 | ||
STIP | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Accrued expenses and other current liabilities | 0 | 0 | $ 0 | ||
Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total intrinsic value | 200 | $ 400 | 400 | $ 400 | |
Fair value | $ 300 | $ 500 | $ 500 | $ 600 | |
Vested (in shares) | 58,133 | 106,256 | 93,205 | 121,060 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-based compensation expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Stock-Based Compensation | ||||
Stock options | $ 140 | $ 264 | $ 535 | $ 1,231 |
Restricted stock units | 165 | 103 | 640 | 350 |
Total stock-based compensation | $ 305 | $ 367 | $ 1,175 | $ 1,581 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Apr. 03, 2018 | |
Value of shares issued | $ 6,874 | $ 2,642 | $ 18,774 | $ 24,547 | |
Period for consulting agreement | 1 year | ||||
Cash dividend rate declared, per common share | $ 0.01 | $ 0.005 | $ 0.03 | $ 0.015 | |
Share issue price ( in dollars per share) | 3.88 | $ 3.88 | |||
Cash dividend rate paid, per common share | $ 0.01 | $ 0.005 | $ 0.03 | ||
Dividends paid | $ 900 | ||||
Shares issued as payment for third-party agreement | 25,000 | ||||
Dividends | $ 708 | $ 329 | $ 2,081 | $ 955 | |
ATM Agreement | |||||
Sale of shares | 1,705,323 | 773,716 | 6,039,823 | 6,625,588 | |
Value of shares issued | $ 6,800 | $ 2,600 | $ 18,700 | $ 24,400 | |
Golden Mile project | |||||
Common stock issued for the acquisition of mineral properties (in share) | 26,110 | ||||
Maximum | ATM Agreement | |||||
Common stock aggregate gross sales price | $ 75,000 |
Other (Income) Expense, net (De
Other (Income) Expense, net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Other (Income) Expense, Net | ||||
Unrealized currency exchange loss | $ 163 | $ 406 | $ 221 | $ 294 |
Realized currency exchange (gain) loss | (76) | (69) | (191) | 103 |
Unrealized gain from gold and silver rounds/bullion, net | (716) | (307) | (1,175) | (550) |
Increase in reserve for inventory | 478 | 478 | ||
Other expense | 92 | 92 | 274 | 193 |
Total | $ (537) | $ 600 | $ (871) | $ 518 |
Net Income per Common Share - N
Net Income per Common Share - Narrative (Details) - $ / shares shares in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Net Income per Common Share | ||
Stock options excluded from computation of diluted weighted average share outstanding | 3.6 | 3.9 |
Shares excluded from weighted average shares outstanding, exercise price | $ 8.97 | $ 9.73 |
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 | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Net Income per Common Share | ||||
Net income | $ 5,001 | $ 2,978 | $ 68 | $ 5,658 |
Basic weighted average shares of common stock outstanding | 70,641,938 | 65,495,958 | 68,896,059 | 63,001,178 |
Dilutive effect of share-based awards | 402,590 | 300,941 | 393,290 | 334,953 |
Diluted weighted average common shares outstanding | 71,044,528 | 65,796,899 | 69,289,349 | 63,336,131 |
Net income per share: | ||||
Basic and diluted | $ 0.07 | $ 0.05 | $ 0.09 |
Fair Value Measurement (Details
Fair Value Measurement (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net allowance for doubtful accounts | $ 1,400 | |
Realized/unrealized derivative gain (loss), net | (100) | $ 200 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash bank deposits | 31,313 | 11,076 |
Gold and silver rounds/bullion | 5,241 | 4,265 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Receivables from provisional concentrate sales | 4,777 | 8,362 |
Loans Payable | $ 1,005 | $ 1,661 |
Fair Value Measurement - Statem
Fair Value Measurement - Statement Of Income Classification (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Fair Value Statement Of Income Classification [Line Items] | |||||
Realized/unrealized derivative gain (loss), net | $ (100) | $ 200 | |||
Sales | |||||
Fair Value Statement Of Income Classification [Line Items] | |||||
Realized/unrealized derivative gain (loss), net | $ 550 | $ 784 | 18 | $ 2,149 | |
Other Operating Income (Expense) | |||||
Fair Value Statement Of Income Classification [Line Items] | |||||
Realized/unrealized gold and silver rounds/bullion gain, net | $ 679 | $ 306 | $ 1,136 | $ 545 |
Fair Value Measurement - Realiz
Fair Value Measurement - Realized Unrealized Derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Derivatives, Fair Value [Line Items] | ||||
Realized gain (loss) | $ 653 | $ (245) | $ 250 | $ 1,369 |
Unrealized gain (loss) | (103) | 1,029 | (232) | 780 |
Total realized/ unrealized derivatives, net | 550 | 784 | 18 | 2,149 |
Gold | ||||
Derivatives, Fair Value [Line Items] | ||||
Realized gain (loss) | 132 | 23 | 651 | 195 |
Unrealized gain (loss) | (11) | 181 | (209) | 145 |
Total realized/ unrealized derivatives, net | 121 | 204 | 442 | 340 |
Silver | ||||
Derivatives, Fair Value [Line Items] | ||||
Realized gain (loss) | 339 | 33 | 451 | 129 |
Unrealized gain (loss) | (47) | 378 | (290) | 318 |
Total realized/ unrealized derivatives, net | 292 | 411 | 161 | 447 |
Copper | ||||
Derivatives, Fair Value [Line Items] | ||||
Realized gain (loss) | 89 | 52 | 20 | 120 |
Unrealized gain (loss) | (24) | 18 | (9) | 65 |
Total realized/ unrealized derivatives, net | 65 | 70 | 11 | 185 |
Lead | ||||
Derivatives, Fair Value [Line Items] | ||||
Realized gain (loss) | 16 | (78) | (143) | (97) |
Unrealized gain (loss) | (10) | 200 | 41 | 123 |
Total realized/ unrealized derivatives, net | 6 | 122 | (102) | 26 |
Zinc | ||||
Derivatives, Fair Value [Line Items] | ||||
Realized gain (loss) | 77 | (275) | (729) | 1,022 |
Unrealized gain (loss) | (11) | 252 | 235 | 129 |
Total realized/ unrealized derivatives, net | $ 66 | $ (23) | $ (494) | $ 1,151 |
Supplementary Cash Flow Infor_3
Supplementary Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Supplementary Cash Flow Information | ||||
Unrealized gain on gold and silver rounds/bullion | $ (1,175) | $ (550) | ||
Unrealized foreign currency exchange loss | $ 163 | $ 406 | 221 | 294 |
Increase in reserve for inventory | $ 478 | 478 | ||
Other | 139 | 92 | ||
Total other operating adjustments | $ (815) | $ 314 |
Segment Reporting (Details)
Segment Reporting (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)segment | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Number of reportable segments | segment | 2 | ||||
Total sales, net | $ 42,286 | $ 40,066 | $ 91,389 | $ 96,018 | |
Exploration expense | 3,927 | 3,923 | 9,770 | 10,641 | |
Net income (loss) | 5,001 | 2,978 | 68 | 5,658 | |
Capital expenditures | 3,634 | 9,938 | 12,212 | 31,186 | |
Change in capital expenditures in accounts payable | (2,207) | 158 | |||
Non - cash additions | 1,504 | 1,862 | |||
Capital expenditures on a cash basis | 12,915 | 29,166 | |||
Assets | 203,463 | 203,463 | $ 193,012 | ||
Mexico | |||||
Total sales, net | 26,435 | 34,086 | 61,105 | 88,498 | |
Net income (loss) | 4,716 | 5,426 | 2,481 | 12,785 | |
Capital expenditures | 3,066 | 3,870 | 5,826 | 13,205 | |
Assets | 91,752 | 91,752 | 98,718 | ||
Nevada | |||||
Total sales, net | 15,851 | 5,980 | 30,284 | 7,520 | |
Net income (loss) | 3,869 | (480) | 2,192 | (454) | |
Capital expenditures | 564 | 6,056 | 6,341 | 17,969 | |
Assets | 90,494 | 90,494 | 84,669 | ||
Corporate and Other | |||||
Net income (loss) | (3,584) | (1,968) | (4,605) | (6,673) | |
Capital expenditures | 4 | 12 | 45 | 12 | |
Assets | 21,217 | 21,217 | $ 9,625 | ||
Exploration expenses | |||||
Exploration expense | 1,799 | 1,129 | 3,505 | 3,210 | |
Exploration expenses | Mexico | |||||
Exploration expense | 982 | 775 | 2,077 | 2,370 | |
Exploration expenses | Nevada | |||||
Exploration expense | 780 | 322 | 1,373 | 770 | |
Exploration expenses | Corporate and Other | |||||
Exploration expense | $ 37 | $ 32 | $ 55 | $ 70 |
Covid-19 (Details)
Covid-19 (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2020 | Mar. 31, 2020 | |
ATM Agreement | ||
Proceeds from sale of common stock | $ 11.9 | $ 11.9 |