Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 26, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-34857 | |
Entity Registrant Name | Gold Resource Corporation | |
Entity Incorporation, State or Country Code | CO | |
Entity Tax Identification Number | 84-1473173 | |
Entity Address, Address Line One | 2000 South Colorado Blvd, | |
Entity Address, Address Line Two | Tower One, | |
Entity Address, Address Line Three | Suite 10200, | |
Entity Address, City or Town | Denver, | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80222 | |
City Area Code | 303 | |
Local Phone Number | 320-7708 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | GORO | |
Security Exchange Name | NYSEAMER | |
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 | |
Entity Common Stock, Shares Outstanding | 74,581,679 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001160791 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 29,544 | $ 25,405 |
Gold and silver rounds/bullion | 559 | 671 |
Accounts receivable, net | 4,947 | 4,226 |
Inventories, net | 10,876 | 9,995 |
Prepaid expenses and other current assets | 2,999 | 2,576 |
Total current assets | 48,925 | 42,873 |
Property, plant and mine development, net | 66,317 | 62,511 |
Deferred tax assets, net | 434 | 309 |
Other non-current assets | 505 | 41 |
Total assets | 116,181 | 105,734 |
Current liabilities: | ||
Accounts payable | 8,988 | 8,782 |
Income taxes payable, net | 3,215 | 73 |
Mining royalty taxes payable, net | 1,861 | 955 |
Accrued expenses and other current liabilities | 3,888 | 2,275 |
Total current liabilities | 17,952 | 12,085 |
Reclamation and remediation liabilities | 3,121 | 3,098 |
Other non-current liabilities | 901 | 13 |
Total liabilities | 21,974 | 15,196 |
Shareholders' equity: | ||
Common stock - $0.001 par value, 200,000,000 shares authorized:74,581,679 and 74,376,958 shares outstanding at September 30, 2021 and December 31, 2020, respectively | 75 | 75 |
Additional paid-in capital | 85,429 | 84,865 |
Retained earnings | 15,758 | 12,653 |
Treasury stock at cost, 336,398 shares | (5,884) | (5,884) |
Accumulated other comprehensive loss | (1,171) | (1,171) |
Total shareholders' equity | 94,207 | 90,538 |
Total liabilities and shareholders' equity | $ 116,181 | $ 105,734 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares outstanding | 74,581,679 | 74,376,958 |
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, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
Sales, net | $ 29,029 | $ 26,435 | $ 87,133 | $ 61,105 |
Production costs | 17,216 | 16,286 | 51,982 | 42,856 |
Depreciation and amortization | 3,521 | 4,340 | 11,299 | 13,537 |
Reclamation and remediation | 47 | 44 | 152 | 119 |
Total mine cost of sales | 20,784 | 20,670 | 63,433 | 56,512 |
Mine gross profit | 8,245 | 5,765 | 23,700 | 4,593 |
Costs and expenses: | ||||
General and administrative expenses | 2,355 | 2,360 | 6,070 | 5,961 |
Exploration expenses | 1,805 | 1,019 | 3,660 | 2,132 |
Restructuring expenses | 496 | |||
Stock-based compensation | 30 | 305 | 711 | 1,175 |
Other expense (income), net | 174 | (599) | 727 | (1,043) |
Total costs and expenses | 4,364 | 3,085 | 11,664 | 8,225 |
Income (loss) before income taxes | 3,881 | 2,680 | 12,036 | (3,632) |
Provision for income taxes (benefit) | 2,352 | 2,931 | 6,697 | (420) |
Net income (loss) from continuing operations | 1,529 | (251) | 5,339 | (3,212) |
Net income from discontinued operations, net of income taxes | 5,252 | 3,280 | ||
Net income | $ 1,529 | $ 5,001 | $ 5,339 | $ 68 |
Net income per common share: | ||||
Basic and diluted net income (loss) per common share from continuing operations | $ 0.02 | $ 0.01 | $ 0.07 | $ (0.05) |
Basic and diluted net income per common share from discontinued operations | 0.06 | 0.05 | ||
Basic and diluted net income per common share | $ 0.02 | $ 0.07 | $ 0.07 | $ 0 |
Weighted average shares outstanding: | ||||
Basic | 74,552,545 | 70,641,938 | 74,481,281 | 68,896,059 |
Diluted | 74,898,520 | 71,044,528 | 74,842,095 | 69,289,349 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common Shares | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | Total |
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 | |||||
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 loss | 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 | |||||
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 loss | 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 | |||||
Balance at Dec. 31, 2020 | 84,865 | 12,653 | (5,884) | (1,171) | 90,538 | |
Balance (in shares) at Dec. 31, 2020 | 74,713,356 | |||||
Balance at Dec. 31, 2020 | $ 75 | 75 | ||||
Stock-based compensation | 506 | 506 | ||||
Net stock options exercised | 263 | $ 263 | ||||
Net stock options exercised (in shares) | 217,718 | 217,718 | ||||
Common stock issued for vested restricted stock units (in shares) | 52,797 | |||||
Dividends declared | (2,234) | $ (2,234) | ||||
Surrender of stock for taxes due on vesting | (205) | (205) | ||||
Surrender of stock for taxes due on vesting (in shares) | (65,794) | |||||
Net income loss | 5,339 | 5,339 | ||||
Balance at Sep. 30, 2021 | 85,429 | 15,758 | (5,884) | (1,171) | 94,207 | |
Balance (in shares) at Sep. 30, 2021 | 74,918,077 | |||||
Balance at Sep. 30, 2021 | $ 75 | 75 | ||||
Balance at Jun. 30, 2021 | 85,269 | 14,974 | (5,884) | (1,171) | 93,263 | |
Balance (in shares) at Jun. 30, 2021 | 74,868,322 | |||||
Balance at Jun. 30, 2021 | $ 75 | |||||
Stock-based compensation | 160 | $ 160 | ||||
Net stock options exercised (in shares) | 0 | |||||
Common stock issued for vested restricted stock units (in shares) | 50,183 | |||||
Dividends declared | (745) | $ (745) | ||||
Surrender of stock for taxes due on vesting (in shares) | (428) | |||||
Net income loss | 1,529 | 1,529 | ||||
Balance at Sep. 30, 2021 | $ 85,429 | $ 15,758 | $ (5,884) | $ (1,171) | 94,207 | |
Balance (in shares) at Sep. 30, 2021 | 74,918,077 | |||||
Balance at Sep. 30, 2021 | $ 75 | $ 75 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 5,339 | $ 68 |
Net income from discontinuing operations | 3,280 | |
Net income (loss) from continuing operations | 5,339 | (3,212) |
Adjustments to reconcile net income from continuing operations to net cash from operating activities: | ||
Deferred income taxes | (74) | (4,617) |
Depreciation and amortization | 11,405 | 13,690 |
Stock-based compensation | 711 | 1,175 |
Other operating adjustments | 475 | (831) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (721) | 5,185 |
Inventories | (810) | 838 |
Prepaid expenses and other current assets | (1,038) | (178) |
Accounts payable and other accrued liabilities | 2,730 | (897) |
Mining royalty and income taxes payable, net | 3,855 | 935 |
Net cash provided by operating activities from continuing operations | 21,872 | 12,088 |
Cash flows from investing activities: | ||
Capital expenditures | (15,217) | (6,546) |
Other investing activities | 133 | |
Net cash used in investing activities from continuing operations | (15,217) | (6,413) |
Cash flows from financing activities: | ||
Proceeds from the exercise of stock options | 263 | |
Proceeds from issuance of stock | 18,673 | |
Dividends paid | (2,481) | (2,062) |
Cash related to the Spin-off | (7,616) | |
Other financing activities | 3 | (6) |
Net cash (used in) provided by financing activities from continuing operations | (2,215) | 8,989 |
Effect of exchange rate changes on cash and cash equivalents from continuing operations | (301) | (303) |
Cash flows from discontinued operations: | ||
Net cash used in operating activities | 0 | 5,198 |
Net cash used in investing activities | 0 | (6,368) |
Net increase in cash and cash equivalents | 4,139 | 13,191 |
Cash and cash equivalents of continuing operations at beginning of period | 25,405 | 10,210 |
Cash and cash equivalents of continuing operations at end of period | $ 29,544 | $ 23,401 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Supplemental Cash Flow Information Continuing Operations | ||
Interest expense paid | $ 25 | |
Income and mining taxes paid | $ 3,898 | 1,915 |
Non-cash investing activities: | ||
Change in capital expenditures in accounts payable | (72) | (675) |
Change in estimate for asset retirement costs | $ 7 | $ (307) |
Basis of Preparation of Financi
Basis of Preparation of Financial Statements | 9 Months Ended |
Sep. 30, 2021 | |
Basis of Preparation of Financial Statements | |
Basis of Preparation of Financial Statements | 1. Basis of Preparation of Financial Statements The Condensed Consolidated Interim 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 (“SEC”) 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, 2020 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. These reclassifications were mostly related to Discontinued Operations and separate presentation of stock-based compensation. |
Recently Adopted Accounting Sta
Recently Adopted Accounting Standards | 9 Months Ended |
Sep. 30, 2021 | |
Recently Adopted Accounting Standards | |
Recently Adopted Accounting Standards | 2. Recently Adopted Accounting Standards Recent accounting pronouncements issued have been evaluated and do not presently impact our financial statements and supplemental data. |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Sep. 30, 2021 | |
Discontinued Operations | |
Discontinued Operations | 3. Discontinued Operations On December 31, 2020, the Company completed its spin-off of its wholly-owned subsidiary Fortitude Gold Corporation and its subsidiaries (“FGC” or “Nevada Mining Unit”). FGC is presented as discontinued operations in the Company’s Condensed Consolidated Financial Statements. Results of discontinued operations for the three and nine months ended September 30, 2020, are as follows ( in thousands For the three months ended September 30, For the nine months ended September 30, 2020 2020 (Unaudited) (Unaudited) Sales, net $ 15,851 $ 30,284 Mine cost of sales 10,714 25,872 Mine gross profit 5,137 4,412 Exploration expenses 780 1,373 Other expense, net 62 172 Profit before income taxes 4,295 2,867 Income tax benefit (957) (413) Net income from discontinued operations $ 5,252 $ 3,280 Selected Statements of Cash Flows presenting depreciation and amortization, capital expenditures, sale proceeds and significant operating noncash items of FGC were as follows: For the three months ended September 30, For the nine months ended September 30, 2020 2020 (Unaudited) (Unaudited) Cash flows from discontinued operating activities: Net income $ 5,252 $ 3,280 Adjustments to reconcile net income to net cash from discontinued operating activities: Deferred income benefit (957) (413) Depreciation and amortization 2,981 6,263 Other operating adjustments 24 17 Changes in operating assets and liabilities: Accounts receivable (1,500) (1,599) Inventories 154 (2,662) Prepaid expenses and other current assets (6) (17) Other non-current assets (1,048) (1,304) Accounts payable and other accrued liabilities 1,654 958 Mining royalty and income taxes payable, net 675 675 Net cash provided by discontinued operating activities 7,229 5,198 Cash flows from discontinued investing activities: Capital expenditures (173) (6,368) Net cash used in discontinued investing activities (173) (6,368) Cash flows from discontinued financing activities: Cash transferred from Gold Resource Corporation prior to spin-off 294 8,786 Repayment of loans payable 109 (326) Repayment of finance leases (440) (656) Net cash provided (to) by discontinued financing activities (37) 7,804 Supplemental Cash Flow Information Discontinued Operations Non-cash investing activities: Change in capital expenditures in accounts payable $ (14) $ (1,532) Change in estimate for asset retirement costs $ 307 $ 1,404 Effective December 31, 2020, in connection with the spin-off, the Company entered into an agreement with FGC that governs the relationship of the parties following the spin-off. The Management Services Agreement provided that the Company and its subsidiaries provide services to FGC to assist in the transition of FGC as a separate company. The agreed upon charges for services rendered were based on market rates that align with the rates that an unaffiliated service provider would charge for similar services. Due to the successful development of FGC’s corporate, administrative, and technical capabilities, the Company terminated the Agreement effective on May 21, 2021. |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2021 | |
Revenue | |
Revenue | 4. 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: For the three months ended September 30, For the nine months ended September 30, 2021 2020 2021 2020 (in thousands) (in thousands) Doré sales, net Gold $ 1,634 $ 1,495 $ 6,816 $ 5,155 Silver 38 878 643 2,232 Less: Refining charges (21) (67) (112) (212) Total doré sales, net 1,651 2,306 7,347 7,175 Concentrate sales Gold 8,709 5,211 22,904 13,894 Silver 6,179 6,857 19,443 14,638 Copper 2,447 2,911 9,547 6,470 Lead 3,641 3,501 8,641 8,730 Zinc 9,187 10,894 27,193 25,110 Less: Treatment and refining charges (2,307) (5,795) (8,098) (14,930) Total concentrate sales, net 27,856 23,579 79,630 53,912 Realized (loss) gain embedded derivative, net (246) 653 204 250 Unrealized (loss) gain embedded derivative, net (232) (103) (48) (232) Total sales, net $ 29,029 $ 26,435 $ 87,133 $ 61,105 |
Gold and Silver Rounds_Bullion
Gold and Silver Rounds/Bullion | 9 Months Ended |
Sep. 30, 2021 | |
Gold and Silver Rounds/Bullion | |
Gold and Silver Rounds/Bullion | 5 . Gold and Silver Rounds/Bullion The Company sponsored a dividend exchange program under which shareholders could exchange their cash dividends for minted gold and silver rounds. The Company determined to discontinue its dividend exchange program effective Q3 2021 due to its administration costs and limited shareholder participation. At September 30, 2021 and December 31, 2020, the Company’s holdings and value of rounds/bullion, using quoted market prices, consisted of the following: As of September 30, 2021 As of December 31, 2020 (Unaudited) Ounces Per Ounce Amount Ounces Per Ounce Amount (in thousands) (in thousands) Gold 176 $ 1,743 $ 307 189 $ 1,888 $ 357 Silver 11,715 $ 21.53 252 11,842 $ 26.49 314 Total holdings $ 559 $ 671 |
Inventories, net
Inventories, net | 9 Months Ended |
Sep. 30, 2021 | |
Inventories, net | |
Inventories, net | 6. Inventories, net At September 30, 2021 and December 31, 2020, inventories, net, consisted of the following: As of As of September 30, December 31, 2021 2020 (Unaudited) (in thousands) Stockpiles - underground mine $ 796 $ 648 Stockpiles - open pit mine - 41 Concentrates 1,745 1,919 Doré, net (1) 602 459 Subtotal - product inventories 3,143 3,067 Materials and supplies (2) 7,733 6,928 Total $ 10,876 $ 9,995 (1) Net of reserve of nil and $368 at September 30, 2021 and December 31, 2020, respectively. (2) Net of reserve for obsolescence of $209 both as of September 30, 2021 and December 31, 2020 . |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Taxes | |
Income Taxes | 7. Income Taxes The Company recorded an income tax expense of $2.4 million and $6.7 million for the three and nine months ended September 30, 2021. For the three and nine months ended September 30, 2020, the Company recorded an income tax expense of $2.9 million and a benefit of $0.4 million, respectively. In accordance with applicable accounting rules, the interim provision for taxes is calculated using the estimated consolidated annual 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% and a 5% withholding tax applies to dividends received from Mexico. The Mexico income is taxed at 37.5% (30% income tax and 7.5% mining tax) and Canada income is taxed at 26.5%, which results in a consolidated effective tax rate above statutory U.S. Federal rates. The U.S. jurisdiction does not currently generate taxable income. Mexico Mining Taxation Mining entities in Mexico are subject to two mining duties, in addition to the 30% Mexico corporate income tax. The first is a “special” mining duty of 7.5% of taxable income as defined under Mexican tax law (also referred to as “mining royalty tax”) on extraction activities performed by concession holders. The mining royalty tax is generally applicable to earnings before income tax, depreciation, depletion, amortization, and interest, and it is considered an income tax for purposes of financial reporting. The second is a 0.5% mining duty over sales of gold and silver, but this duty is not considered an income tax for financial reporting purposes and reported as production cost. Both duties are tax deductible for Mexico income tax purposes. In addition, in Q1 2021, the Mexican Tax Authorities introduced new tax regulation wherein the treatment of exploration expenses for mining royalty taxes were aligned with the income tax treatment. Exploration expenses that were previously 100% deductible in the year incurred are now being deducted at a rate of 10% per year for 10 years. The Company periodically transfers funds from its Mexican wholly-owned subsidiary to the U.S. in the form of dividends, which are subject to a 10% Mexico withholding tax, unless otherwise provided per a tax treaty. The current U.S.-Mexico tax treaty limits the dividend withholding tax between these countries to 5%, as long as certain requirements are met. Based on the understanding that it meets these requirements, the Company pays a 5% withholding tax on dividends received from Mexico in 2021. The impact of the planned annual dividends for 2021 is reflected in the estimated annual effective tax rate. As of September 30, 2021, 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, which was 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, and due to the high tax exception, no GILTI tax was incurred for the nine months ended September 30, 2021. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 9 Months Ended |
Sep. 30, 2021 | |
Prepaid Expenses And Other Current Assets | |
Prepaid Expenses and Other Current Assets | 8. Prepaid Expenses and Other Current Assets At September 30, 2021 and December 31, 2020, prepaid expenses and other current assets consisted of the following: As of As of September 30, December 31, 2021 2020 (Unaudited) (in thousands) Advances to suppliers $ 247 $ 374 Prepaid insurance 1,763 709 IVA taxes receivable, net 665 846 Other current assets 324 647 Total $ 2,999 $ 2,576 |
Property, Plant and Mine Develo
Property, Plant and Mine Development, net | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Mine Development, net | |
Property, Plant and Mine Development, net | 9. Property, Plant and Mine Development, net At September 30, 2021 and December 31, 2020, property, plant and mine development, net consisted of the following: As of As of September 30, December 31, 2021 2020 (Unaudited) (in thousands) Asset retirement costs $ 1,071 $ 1,064 Construction-in-progress (1) 13,265 7,158 Furniture and office equipment 1,896 1,839 Land 230 230 Light vehicles and other mobile equipment 2,236 2,192 Machinery and equipment 33,083 31,227 Mill facilities and infrastructure 24,455 24,407 Mine Development 89,760 83,859 Software and licenses 1,636 1,619 Subtotal 167,632 153,595 Accumulated depreciation and amortization (101,315) (91,084) Total $ 66,317 $ 62,511 (1) Includes accrued capital expenditures of $1.0 million both at September 30, 2021 and December 31, 2020. The Company recorded depreciation and amortization expense of $3.5 million and $11.3 million for the three and nine months ended September 30, 2021, as compared with $4.3 million and $13.5 million for the same periods ended September 30, 2020. |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 9 Months Ended |
Sep. 30, 2021 | |
Accrued Expenses and Other Current Liabilities | |
Accrued Expenses and Other Current Liabilities | 10. Accrued Expenses and Other Liabilities At September 30, 2021 and December 31, 2020, accrued expenses and other liabilities consisted of the following: As of As of September 30, December 31, 2021 2020 (Unaudited) (in thousands) Accrued royalty payments 1,401 1,796 Dividends payable - 247 Zinc derivatives 144 - Employee profit sharing obligation 1,569 - Other payables 774 232 Total accrued expenses and other current liabilities $ 3,888 $ 2,275 Accrued non-current labor obligation 682 - Deferred stock unit ("DSU") compensation liability 204 - Other long-term liabilities 15 13 Total other non-current liabilities $ 901 $ 13 On April 23, 2021, a decree that reforms labor outsourcing in Mexico was published in the Federation’s Official Gazette. This new decree amends the outsourcing provisions, whereby operating companies will no longer be able to source their labor resources used to carry out the core business functions from service entities or third-party providers. Under Mexican law, employees are entitled to receive statutory profit sharing (Participacion a los Trabajadores de las Utilidades or “PTU”) payments. The required cash payment to employees in the aggregate is equal to 10% of their employer’s profit subject to PTU, which differs from profit determined under U.S. GAAP. In the past, the Company was not subject to PTU payments, as it had been sourcing its labor resources through a third-party service provider. As a result of adoption of the new legislation, in year-to-date 2021, $1.6 million for PTU was recorded in current liabilities and production cost, as well as $0.7 million for statutory employee severance benefits was recorded in other long-term liabilities and other expenses. |
Reclamation and Remediation
Reclamation and Remediation | 9 Months Ended |
Sep. 30, 2021 | |
Reclamation and Remediation | |
Reclamation and Remediation | 11. Reclamation and Remediation The following table presents the changes in reclamation and remediation obligations for the nine months ended September 30, 2021 and the year ended December 31, 2020: 2021 2020 (Unaudited) (in thousands) Reclamation liabilities – balance at beginning of period $ 1,890 $ 2,003 Foreign currency exchange loss (gain) (34) (113) Reclamation liabilities – balance at end of period 1,856 1,890 Asset retirement obligation – balance at beginning of period 1,208 1,105 Changes in estimate 7 82 Accretion 72 79 Foreign currency exchange loss (gain) (22) (58) Asset retirement obligation – balance at end of period 1,265 1,208 Total period end balance $ 3,121 $ 3,098 The Company’s undiscounted reclamation liabilities of $1.9 million as of September 30, 2021 and December 31, 2020, are related to the Don David Gold Mine in Mexico. These represent reclamation liabilities that were expensed through 2013 before proven and probable reserves were established and the Company was considered to be a development stage entity; therefore, most of the costs, including asset retirement costs, were not allowed to be capitalized as part of our Property, Plant & Mine Development. The Company’s asset retirement obligations reflect the additions to the asset for reclamation and remediation costs in Property, Plant & Mine Development, post 2013 development stage status, which are discounted using a credit adjusted risk-free rate of 8%. As of September 30, 2021 and December 31, 2020, the Company’s asset retirement obligation related to the Don David Gold Mine in Mexico was $1.3 million and $1.2 million, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies | |
Commitments and Contingencies | 12. Commitments and Contingencies Commitments Both as of September 30, 2021 and December 31, 2020, the Company has equipment purchase commitments of approximately $0.4 million. Other Contingencies The Company has certain other contingencies resulting from litigation, claims, and other commitments that are subject to a variety of environmental and safety laws and regulations incident related to the ordinary course of business. The Company currently has no basis to conclude that any or all of such contingencies will materially affect its financial position, results of operations or cash flows. However, in the future, there may be changes to these contingencies, or additional contingencies may occur, any of which might result in an accrual or a change in current accruals recorded by the Company, and there can be no assurance that their ultimate disposition will not have a material adverse effect on the Company’s financial position, results of operations or cash flows. |
Derivatives
Derivatives | 9 Months Ended |
Sep. 30, 2021 | |
Derivatives | |
Derivatives | 13. Derivatives 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 forward metal prices. Please see Note 18 The following table summarizes the Company’s unsettled sales contracts at September 30, 2021 with the quantities of metals under contract subject to final pricing occurring through October 2021: Gold Silver Copper Lead Zinc Total (ounces) (ounces) (tonnes) (tonnes) (tonnes) Under contract 2,579 118,576 146 740 3,148 Average forward price (per ounce or tonne) $ 1,770 $ 23.07 $ 9,324 $ 2,261 $ 2,988 Unsettled sales contracts value (in thousands) $ 4,565 $ 2,736 $ 1,361 $ 1,673 $ 9,406 $ 19,741 Other Derivatives Derivative instruments that are not designated as hedging instruments are required to be recorded on the balance sheet at fair value. Changes in fair value will impact the Company’s earnings through mark-to-market adjustments until the physical commodity is delivered or the financial instrument is settled. The fair value does not reflect the realized or cash value of the instrument. As of September 30, 2021, the Company’s derivatives not designated as hedges consist of zinc zero cost collars used to manage its near-term exposure to cash flow variability from zinc price risks in 2021. A zero cost collar is a combination of two options: a sold call option and a purchased put option. The Company sold call options to establish the ceiling price of $2,992 per tonne of zinc that the Company will receive for the contracted zinc volume of 5,500 tonnes for June through December 2021. The purchased put establishes the floor price of $2,860 per tonne of zinc that we will receive for the same contracted tonnes and period of time. Derivatives are carried at fair value and on a net basis when a legal right of offset exists with the same counterparty. Otherwise, any fair value gains or losses are recognized in earnings in the current period. The fair value does not reflect the realized or cash value of the instrument. Mark-to-market adjustments are made until the physical commodity is delivered or the financial instrument is settled. The September 2021 London Metal Exchange (“LME”) average zinc price of $3,042 exceeded the call option ceiling of $2,992, resulting in a realized loss of $40 thousand. The mark-to-market adjustment on the remaining 2,550 tonnes resulted in an unrealized loss of $0.1 million, recorded in Accrued expenses and other current liabilities. Subsequent to quarter end, on October 11, 2021, the Company executed additional derivatives of zero cost collars to manage its near-term exposure to cash flow variability from zinc price risks through March 2022. The Company sold call options to establish the ceiling price of $3,200 per tonne of zinc that the Company will receive for the contracted zinc volume of 4,000 tonnes for October 2021 through March 2022. The purchased put establishes the floor price of $2,910 per tonne of zinc that we will receive for the same contracted tonnes and period of time. The Company manages credit risk by selecting counterparties that it believes to be financially strong, by entering into netting arrangements with counterparties and by requiring other credit risk mitigants, as appropriate. The Company actively evaluates the creditworthiness of its counterparties, assigns appropriate credit limits, and monitors credit exposures against those assigned limits. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2021 | |
Stock-Based Compensation | |
Stock-Based Compensation | 14. 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 prior plan that is terminated, expired, forfeited, or canceled for any reason, will be available for grant under the Incentive Plan. Effective January 1, 2021, the Company’s Board of Directors, on the recommendation of the Compensation Committee, implemented a program to issue deferred stock units (“DSUs”). DSUs are a qualifying instrument under the terms of the Company’s 2016 Equity Incentive Plan and therefore do not require additional shareholder approval. The vesting and settlement terms of the DSUs are determined by the Compensation Committee at the time the DSUs are awarded. 130,000 DSUs were granted to the Board of Directors during the period ended March 31, 2021 and are redeemable in cash or shares at the earlier of 10 years or upon the eligible directors’ termination. Termination is deemed to occur on the earliest of (1) the date of voluntary resignation or retirement of the director from the Board; (2) the date of death of the director; or (3) the date of removal of the director from the Board whether by shareholder resolution, failure to achieve re-election or otherwise; and on which date the director is not a director or employee of the Company or any of its affiliates. These awards contain a cash settlement feature and are therefore classified as a liability and are marked to fair value each reporting period. The Company may also issue DSUs for directors in lieu of board fees at their request. As of September 30, 2021, there were 1,960 DSUs granted in lieu of board fees that are also subject to mark-to-market adjustment. As of September 30, 2021, the Company recorded $0.2 million of other non-current liability and expense During the three and nine months ended September 30, 2021, a total of 49,755 and 52,797 RSUs vested, respectively, and shares were issued with an intrinsic value of $0.1 and $0.1 million, respectively, and a fair value of $0.1 and $0.1 million, respectively. During the three and nine months ended September 30, 2020, a total of 58,133 and 93,205 RSUs vested, respectively, and shares were issued with an intrinsic value of $0.2 and $0.4 million, respectively, and a fair value of $0.3 and $0.5 million, respectively. No stock options were exercised during the three months ended September 30, 2021. During the nine months ended September 30, 2021, stock options to purchase an aggregate of 217,718 shares of the Company’s common stock were exercised at a weighted average exercise price of $1.31 per share. No stock options were exercised during the three and nine months ended September 30, 2020. Stock-based compensation expense for stock options, RSUs, and DSUs for the periods presented is as follows: For the three months ended September 30, For the nine months ended September 30, 2021 2020 2021 2020 (in thousands) (in thousands) Stock options $ 74 $ 140 $ 436 $ 535 Restricted stock units 87 165 71 640 Deferred stock units (131) - 204 - Total $ 30 $ 305 $ 711 $ 1,175 The Company has a short-term incentive plan (“STIP”) for its executive officers that provides for the grant of either cash or stock-based bonus awards payable upon achievement of specified performance metrics. As of September 30, 2021 we accrued $0.4 million related to the STIP program. As of December 31, 2020, there were no accruals related to the STIP |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2021 | |
Shareholders' Equity | |
Shareholders' Equity | 15. 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 of the Company’s common stock from time to time, 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 1,705,323 shares and 6,039,823 shares of the Company’s common stock were sold through the ATM Agreement during the three and nine months ended September 30, 2020, respectively, for net proceeds to the Company, after deducting the Agent’s commissions and other expenses, of $6.8 million and $18.7 million, respectively. No ATM shares were sold during the three and nine months ended September 30, 2021. During the three and nine months ended September 30, 2021, the Company declared dividends of $0.01 per common share and $0.03 per common share, respectively, and paid an aggregate total of $0.7 million and $2.5 million, respectively. During the three and nine months ended September 30, 2020, the Company declared and paid dividends of $0.01 per common share and $0.03 per common share, respectively, for an aggregate total of $0.7 million and $2.1 million, respectively. At the Company’s annual meeting held in June 2021, shareholders approved an amendment to the Company’s articles of incorporation to increase the number of authorized shares of common stock from 100 million to 200 million shares. |
Other (Income) Expense, net
Other (Income) Expense, net | 9 Months Ended |
Sep. 30, 2021 | |
Other (Income) Expense, net | |
Other (Income) Expense, net | 16. Other (Income) Expense, net Other (income) expense, net, for the periods presented consisted of the following: For the three months ended September 30, For the nine months ended September 30, 2021 2020 2021 2020 (in thousands) (in thousands) Unrealized currency exchange (gain) loss (1) $ (59) $ 163 $ 257 $ 221 Realized currency exchange loss (gain) 24 (76) (35) (191) Unrealized loss (gain) from gold and silver rounds/bullion, net (1) 55 (716) 86 (1,175) Unrealized loss on zinc zero cost collar (1) 144 - 144 - Realized loss on zinc zero cost collar 40 - 40 - Employee benefit obligation - - 700 - Other (income) expense (30) 30 (465) 102 Total $ 174 $ (599) $ 727 $ (1,043) (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 18 . |
Net Income per Common Share
Net Income per Common Share | 9 Months Ended |
Sep. 30, 2021 | |
Net Income per Common Share | |
Net Income per Common Share | 17. Net Income per Common Share Basic net income per common share is calculated based on the weighted average number of common shares outstanding for the period. Diluted earnings per common share are 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 the Company’s RSUs and DSUs 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 2.1 million and 3.6 million shares of common stock at weighted average exercise prices of $5.11 and $8.97 were outstanding at September 30, 2021 and 2020, 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 the reporting period, and therefore are anti-dilutive. Basic and diluted net income per common share is calculated as follows: For the three months ended For the nine months ended September 30, September 30, 2021 2020 2021 2020 Numerator: Net income (loss) from continuing operations 1,529 (251) 5,339 (3,212) Net income from discontinued operations - 5,252 - 3,280 Net income (in thousands) $ 1,529 $ 5,001 $ 5,339 $ 68 Denominator: Basic weighted average shares of common stock outstanding 74,552,545 70,641,938 74,481,281 68,896,059 Dilutive effect of share-based awards 345,975 402,590 360,814 393,290 Diluted weighted average common shares outstanding 74,898,520 71,044,528 74,842,095 69,289,349 Basic and diluted net income (loss) per common share: Continuing operations 0.02 0.01 0.07 (0.05) Discontinued operations - 0.06 - 0.05 Basic and diluted net income per common share $ 0.02 $ 0.07 $ 0.07 $ 0.00 |
Fair Value Measurement
Fair Value Measurement | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Measurement | |
Fair Value Measurement | 18. 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 measured at fair value by level within the fair value hierarchy as of September 30, 2021 and December 31, 2020: As of As of September 30, December 31, Input Hierarchy Level 2021 2020 (in thousands) Cash and cash equivalents $ 29,544 $ 25,405 Level 1 Gold and silver rounds/bullion $ 559 $ 671 Level 1 Accounts receivable, net $ 4,947 $ 4,226 Level 2 Derivative liability - zinc zero cost collar $ (144) $ - 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 which are valued using quoted market prices. Please see Note 5 Accounts receivable, net include amounts due to the Company for deliveries of concentrates and doré sold to customers, net of embedded derivatives mark-to-market value of $0.1 million as of September 30, 2021, and $0.2 million as of December 31, 2020. Concentrate sales contracts provide for provisional pricing as specified in such contracts. These sales contain an embedded derivative related to the provisional pricing mechanism and are 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 and included in its accounts receivable on the accompanying Condensed Consolidated Interim Balance Sheets related to mark-to-market adjustments. Please see Note 13 Gains and losses related to changes in the fair value of these financial instruments were included in the Company’s Condensed Consolidated Interim Statements of Operations as shown in the following table: For the three months ended September 30, For the nine months ended September 30, Statement of Operations Classification 2021 2020 2021 2020 Note (in thousands) Realized and unrealized derivative (loss) gain, net 14 $ (478) $ 550 $ 156 $ 18 Sales, net Unrealized gold and silver rounds/bullion (loss) gain 16 $ (55) $ 716 $ (86) $ 1,175 Other expense, net Realized (loss) on zinc zero cost collar, net 16 $ (40) $ - $ (40) $ - 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 For the three months ended September 30, 2021 Realized (loss) gain $ (110) $ (295) $ (4) $ 72 $ 91 $ (246) Unrealized gain (loss) 28 (11) (16) (84) (149) (232) Total realized/unrealized derivatives, net $ (82) $ (306) $ (20) $ (12) $ (58) $ (478) Gold Silver Copper Lead Zinc Total For the 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 For the nine months ended September 30, 2021 Realized (loss) gain $ (133) $ (123) $ 63 $ 146 $ 251 $ 204 Unrealized gain (loss) 58 10 (24) (63) (29) (48) Total realized/unrealized derivatives, net $ (75) $ (113) $ 39 $ 83 $ 222 $ 156 Gold Silver Copper Lead Zinc Total For the 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 For the zinc zero cost collar, when the prior month LME average zinc price is greater than the call price, positions settling in the period are recorded as a realized gain or loss, and unsettled positions are recorded as an unrealized gain or loss. |
Supplementary Cash Flow Informa
Supplementary Cash Flow Information | 9 Months Ended |
Sep. 30, 2021 | |
Supplementary Cash Flow Information | |
Supplementary Cash Flow Information | 19. 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, 2021 and 2020 consisted of the following: For the three months ended September 30, For the nine months ended September 30, 2021 2020 2021 2020 (in thousands) (in thousands) Unrealized loss (gain) on gold and silver rounds/bullion $ 55 $ (716) $ 86 $ (1,175) Unrealized foreign currency exchange (gain) loss (59) 163 257 221 Unrealized loss on zinc zero cost collar 144 - 144 - Other (106) 81 (12) 123 Total other operating adjustments $ 34 $ (472) $ 475 $ (831) |
COVID-19 Pandemic
COVID-19 Pandemic | 9 Months Ended |
Sep. 30, 2021 | |
COVID-19 Pandemic | |
COVID-19 Pandemic | 20. COVID-19 Pandemic The Company continues to protect the health and safety of our employees, contractors, and communities, by taking precautionary measures, including specialized training, social distancing, screening workers before they enter facilities, a work from home mandate where possible, and close monitoring of national and regional COVID-19 impacts and governmental guidelines. Since our non-mining workforce is able to work remotely with the benefit of technology, we are able to maintain our operations and internal controls over financial reporting and disclosures. On August 18, 2021, we announced the temporary suspension of activities at the Don David Gold Mine in response to a spike in COVID-19 cases at our mine and surrounding communities. The suspension lasted twelve days and by September 7, 2021, we had significantly ramped back up operations under further enhanced COVID-19 protocols. The Company incurred COVID-19 specific costs of $0.1 million in 2021 for activities such as additional health and safety procedures, increased transportation and community contributions. We are working with local authorities, to improve the availability of vaccines to our employees and host communities. As of the date of the issuance of these unaudited Condensed Consolidated Interim 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). The Company believes that current working capital balances will be sufficient for the foreseeable future, although there is no assurance that will be the case . |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events | |
Subsequent Events | 21. Subsequent Events Subsequent to quarter end, on October 6, 2021, the Company entered into a definitive arrangement agreement with Aquila Resources Inc., whereby GRC will acquire all the issued and outstanding common shares of Aquila by way of a plan of arrangement under the Business Corporations Act (Ontario). Subject to the satisfaction of customary conditions precedent, the Company expects to complete the transaction in the fourth quarter of 2021. |
Basis of Preparation of Finan_2
Basis of Preparation of Financial Statements (Policy) | 9 Months Ended |
Sep. 30, 2021 | |
Basis of Preparation of Financial Statements | |
Basis of Preparation of Financial Statements | The Condensed Consolidated Interim 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 (“SEC”) 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, 2020 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. These reclassifications were mostly related to Discontinued Operations and separate presentation of stock-based compensation. |
Recently Adopted Accounting S_2
Recently Adopted Accounting Standards (Policy) | 9 Months Ended |
Sep. 30, 2021 | |
Recently Adopted Accounting Standards | |
Recently Adopted Accounting Standards | Recent accounting pronouncements issued have been evaluated and do not presently impact our financial statements and supplemental data. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Discontinued Operations | |
Schedule of discontinued operations in company's condensed consolidated financial statements | Results of discontinued operations for the three and nine months ended September 30, 2020, are as follows ( in thousands For the three months ended September 30, For the nine months ended September 30, 2020 2020 (Unaudited) (Unaudited) Sales, net $ 15,851 $ 30,284 Mine cost of sales 10,714 25,872 Mine gross profit 5,137 4,412 Exploration expenses 780 1,373 Other expense, net 62 172 Profit before income taxes 4,295 2,867 Income tax benefit (957) (413) Net income from discontinued operations $ 5,252 $ 3,280 Selected Statements of Cash Flows presenting depreciation and amortization, capital expenditures, sale proceeds and significant operating noncash items of FGC were as follows: For the three months ended September 30, For the nine months ended September 30, 2020 2020 (Unaudited) (Unaudited) Cash flows from discontinued operating activities: Net income $ 5,252 $ 3,280 Adjustments to reconcile net income to net cash from discontinued operating activities: Deferred income benefit (957) (413) Depreciation and amortization 2,981 6,263 Other operating adjustments 24 17 Changes in operating assets and liabilities: Accounts receivable (1,500) (1,599) Inventories 154 (2,662) Prepaid expenses and other current assets (6) (17) Other non-current assets (1,048) (1,304) Accounts payable and other accrued liabilities 1,654 958 Mining royalty and income taxes payable, net 675 675 Net cash provided by discontinued operating activities 7,229 5,198 Cash flows from discontinued investing activities: Capital expenditures (173) (6,368) Net cash used in discontinued investing activities (173) (6,368) Cash flows from discontinued financing activities: Cash transferred from Gold Resource Corporation prior to spin-off 294 8,786 Repayment of loans payable 109 (326) Repayment of finance leases (440) (656) Net cash provided (to) by discontinued financing activities (37) 7,804 Supplemental Cash Flow Information Discontinued Operations Non-cash investing activities: Change in capital expenditures in accounts payable $ (14) $ (1,532) Change in estimate for asset retirement costs $ 307 $ 1,404 |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue | |
Revenue from the sale of dore and concentrate | For the three months ended September 30, For the nine months ended September 30, 2021 2020 2021 2020 (in thousands) (in thousands) Doré sales, net Gold $ 1,634 $ 1,495 $ 6,816 $ 5,155 Silver 38 878 643 2,232 Less: Refining charges (21) (67) (112) (212) Total doré sales, net 1,651 2,306 7,347 7,175 Concentrate sales Gold 8,709 5,211 22,904 13,894 Silver 6,179 6,857 19,443 14,638 Copper 2,447 2,911 9,547 6,470 Lead 3,641 3,501 8,641 8,730 Zinc 9,187 10,894 27,193 25,110 Less: Treatment and refining charges (2,307) (5,795) (8,098) (14,930) Total concentrate sales, net 27,856 23,579 79,630 53,912 Realized (loss) gain embedded derivative, net (246) 653 204 250 Unrealized (loss) gain embedded derivative, net (232) (103) (48) (232) Total sales, net $ 29,029 $ 26,435 $ 87,133 $ 61,105 |
Gold and Silver Rounds_Bullion
Gold and Silver Rounds/Bullion (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Gold and Silver Rounds/Bullion | |
Schedule of Company's Holdings | As of September 30, 2021 As of December 31, 2020 (Unaudited) Ounces Per Ounce Amount Ounces Per Ounce Amount (in thousands) (in thousands) Gold 176 $ 1,743 $ 307 189 $ 1,888 $ 357 Silver 11,715 $ 21.53 252 11,842 $ 26.49 314 Total holdings $ 559 $ 671 |
Inventories, net (Tables)
Inventories, net (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Inventories, net | |
Summary of Inventories | As of As of September 30, December 31, 2021 2020 (Unaudited) (in thousands) Stockpiles - underground mine $ 796 $ 648 Stockpiles - open pit mine - 41 Concentrates 1,745 1,919 Doré, net (1) 602 459 Subtotal - product inventories 3,143 3,067 Materials and supplies (2) 7,733 6,928 Total $ 10,876 $ 9,995 (1) Net of reserve of nil and $368 at September 30, 2021 and December 31, 2020, respectively. (2) Net of reserve for obsolescence of $209 both as of September 30, 2021 and December 31, 2020 . |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Prepaid Expenses And Other Current Assets | |
Schedule of prepaid and other assets | As of As of September 30, December 31, 2021 2020 (Unaudited) (in thousands) Advances to suppliers $ 247 $ 374 Prepaid insurance 1,763 709 IVA taxes receivable, net 665 846 Other current assets 324 647 Total $ 2,999 $ 2,576 |
Property, Plant and Mine Deve_2
Property, Plant and Mine Development, net (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Mine Development, net | |
Schedule of property, plant and mine development | As of As of September 30, December 31, 2021 2020 (Unaudited) (in thousands) Asset retirement costs $ 1,071 $ 1,064 Construction-in-progress (1) 13,265 7,158 Furniture and office equipment 1,896 1,839 Land 230 230 Light vehicles and other mobile equipment 2,236 2,192 Machinery and equipment 33,083 31,227 Mill facilities and infrastructure 24,455 24,407 Mine Development 89,760 83,859 Software and licenses 1,636 1,619 Subtotal 167,632 153,595 Accumulated depreciation and amortization (101,315) (91,084) Total $ 66,317 $ 62,511 (1) Includes accrued capital expenditures of $1.0 million both at September 30, 2021 and December 31, 2020. |
Accrued Expenses and Other Li_2
Accrued Expenses and Other Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accrued Expenses and Other Current Liabilities | |
Schedule of Accrued Expenses and Other Current Liabilities | As of As of September 30, December 31, 2021 2020 (Unaudited) (in thousands) Accrued royalty payments 1,401 1,796 Dividends payable - 247 Zinc derivatives 144 - Employee profit sharing obligation 1,569 - Other payables 774 232 Total accrued expenses and other current liabilities $ 3,888 $ 2,275 Accrued non-current labor obligation 682 - Deferred stock unit ("DSU") compensation liability 204 - Other long-term liabilities 15 13 Total other non-current liabilities $ 901 $ 13 |
Reclamation and Remediation (Ta
Reclamation and Remediation (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Reclamation and Remediation | |
Changes in Reclamation and Remediation | 2021 2020 (Unaudited) (in thousands) Reclamation liabilities – balance at beginning of period $ 1,890 $ 2,003 Foreign currency exchange loss (gain) (34) (113) Reclamation liabilities – balance at end of period 1,856 1,890 Asset retirement obligation – balance at beginning of period 1,208 1,105 Changes in estimate 7 82 Accretion 72 79 Foreign currency exchange loss (gain) (22) (58) Asset retirement obligation – balance at end of period 1,265 1,208 Total period end balance $ 3,121 $ 3,098 |
Derivatives (Tables)
Derivatives (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Derivatives | |
Summary of unsettled sales contracts | Gold Silver Copper Lead Zinc Total (ounces) (ounces) (tonnes) (tonnes) (tonnes) Under contract 2,579 118,576 146 740 3,148 Average forward price (per ounce or tonne) $ 1,770 $ 23.07 $ 9,324 $ 2,261 $ 2,988 Unsettled sales contracts value (in thousands) $ 4,565 $ 2,736 $ 1,361 $ 1,673 $ 9,406 $ 19,741 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Stock-Based Compensation | |
Stock-based compensation expense | For the three months ended September 30, For the nine months ended September 30, 2021 2020 2021 2020 (in thousands) (in thousands) Stock options $ 74 $ 140 $ 436 $ 535 Restricted stock units 87 165 71 640 Deferred stock units (131) - 204 - Total $ 30 $ 305 $ 711 $ 1,175 |
Other (Income) Expense, net (Ta
Other (Income) Expense, net (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Other (Income) Expense, net | |
Schedule of Other (Income) Expense, net | For the three months ended September 30, For the nine months ended September 30, 2021 2020 2021 2020 (in thousands) (in thousands) Unrealized currency exchange (gain) loss (1) $ (59) $ 163 $ 257 $ 221 Realized currency exchange loss (gain) 24 (76) (35) (191) Unrealized loss (gain) from gold and silver rounds/bullion, net (1) 55 (716) 86 (1,175) Unrealized loss on zinc zero cost collar (1) 144 - 144 - Realized loss on zinc zero cost collar 40 - 40 - Employee benefit obligation - - 700 - Other (income) expense (30) 30 (465) 102 Total $ 174 $ (599) $ 727 $ (1,043) (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 18 . |
Net Income per Common Share (Ta
Net Income per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Net Income per Common Share | |
Schedule of net income per common share | For the three months ended For the nine months ended September 30, September 30, 2021 2020 2021 2020 Numerator: Net income (loss) from continuing operations 1,529 (251) 5,339 (3,212) Net income from discontinued operations - 5,252 - 3,280 Net income (in thousands) $ 1,529 $ 5,001 $ 5,339 $ 68 Denominator: Basic weighted average shares of common stock outstanding 74,552,545 70,641,938 74,481,281 68,896,059 Dilutive effect of share-based awards 345,975 402,590 360,814 393,290 Diluted weighted average common shares outstanding 74,898,520 71,044,528 74,842,095 69,289,349 Basic and diluted net income (loss) per common share: Continuing operations 0.02 0.01 0.07 (0.05) Discontinued operations - 0.06 - 0.05 Basic and diluted net income per common share $ 0.02 $ 0.07 $ 0.07 $ 0.00 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Measurement | |
Assets measured at fair value by level within fair value hierarchy | As of As of September 30, December 31, Input Hierarchy Level 2021 2020 (in thousands) Cash and cash equivalents $ 29,544 $ 25,405 Level 1 Gold and silver rounds/bullion $ 559 $ 671 Level 1 Accounts receivable, net $ 4,947 $ 4,226 Level 2 Derivative liability - zinc zero cost collar $ (144) $ - Level 2 |
Gains and Losses Related to Changes in Fair Value | For the three months ended September 30, For the nine months ended September 30, Statement of Operations Classification 2021 2020 2021 2020 Note (in thousands) Realized and unrealized derivative (loss) gain, net 14 $ (478) $ 550 $ 156 $ 18 Sales, net Unrealized gold and silver rounds/bullion (loss) gain 16 $ (55) $ 716 $ (86) $ 1,175 Other expense, net Realized (loss) on zinc zero cost collar, net 16 $ (40) $ - $ (40) $ - 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 For the three months ended September 30, 2021 Realized (loss) gain $ (110) $ (295) $ (4) $ 72 $ 91 $ (246) Unrealized gain (loss) 28 (11) (16) (84) (149) (232) Total realized/unrealized derivatives, net $ (82) $ (306) $ (20) $ (12) $ (58) $ (478) Gold Silver Copper Lead Zinc Total For the 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 For the nine months ended September 30, 2021 Realized (loss) gain $ (133) $ (123) $ 63 $ 146 $ 251 $ 204 Unrealized gain (loss) 58 10 (24) (63) (29) (48) Total realized/unrealized derivatives, net $ (75) $ (113) $ 39 $ 83 $ 222 $ 156 Gold Silver Copper Lead Zinc Total For the 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 |
Supplementary Cash Flow Infor_2
Supplementary Cash Flow Information (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Supplementary Cash Flow Information | |
Schedule of Supplementary Cash Flow Information | For the three months ended September 30, For the nine months ended September 30, 2021 2020 2021 2020 (in thousands) (in thousands) Unrealized loss (gain) on gold and silver rounds/bullion $ 55 $ (716) $ 86 $ (1,175) Unrealized foreign currency exchange (gain) loss (59) 163 257 221 Unrealized loss on zinc zero cost collar 144 - 144 - Other (106) 81 (12) 123 Total other operating adjustments $ 34 $ (472) $ 475 $ (831) |
Discontinued Operations - Resul
Discontinued Operations - Results of discontinued operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Discontinued Operations | ||
Sales, net | $ 15,851 | $ 30,284 |
Mine cost of sales | 10,714 | 25,872 |
Mine gross profit | 5,137 | 4,412 |
Exploration expenses | 780 | 1,373 |
Other expense, net | 62 | 172 |
Profit before income taxes | 4,295 | 2,867 |
Income tax benefit | (957) | (413) |
Net income from discontinued operations, net of income taxes | $ 5,252 | $ 3,280 |
Discontinued Operations - Selec
Discontinued Operations - Selected Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from discontinued operating activities: | |||
Net income from discontinuing operations | $ 5,252 | $ 3,280 | |
Changes in operating assets and liabilities: | |||
Net cash provided by discontinued operating activities | $ 0 | 5,198 | |
Cash flows from discontinued investing activities: | |||
Net cash used in discontinued investing activities | $ 0 | (6,368) | |
Cash flows from discontinued financing activities: | |||
Cash transferred from Gold Resource Corporation at Spin-Off | (7,616) | ||
Fortitude Gold Corporation and Subsidiaries | Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations, Spinoff | |||
Cash flows from discontinued operating activities: | |||
Net income from discontinuing operations | 5,252 | 3,280 | |
Adjustments to reconcile net income to net cash from discontinued operating activities: | |||
Deferred income benefit | (957) | (413) | |
Depreciation and amortization | 2,981 | 6,263 | |
Other operating adjustments | 24 | 17 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | (1,500) | (1,599) | |
Inventories | 154 | (2,662) | |
Prepaid expenses and other current assets | (6) | (17) | |
Other non-current assets | (1,048) | (1,304) | |
Accounts payable and other accrued liabilities | 1,654 | 958 | |
Mining royalty and income taxes payable, net | 675 | 675 | |
Net cash provided by discontinued operating activities | 7,229 | 5,198 | |
Cash flows from discontinued investing activities: | |||
Capital expenditures | (173) | (6,368) | |
Net cash used in discontinued investing activities | (173) | (6,368) | |
Cash flows from discontinued financing activities: | |||
Cash transferred from Gold Resource Corporation prior to Spin-off | 294 | 8,786 | |
Repayment of loans payable | 109 | (326) | |
Repayment of finance leases | (440) | (656) | |
Net cash provided (to) by discontinued financing activities | (37) | 7,804 | |
Non-cash investing activities: | |||
Change in capital expenditures in accounts payable | (14) | (1,532) | |
Change in estimate for asset retirement costs | $ 307 | $ 1,404 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Realized (loss) gain embedded derivative, net | $ (246) | $ 653 | $ 204 | $ 250 |
Unrealized (loss) gain embedded derivative, net | (232) | (103) | (48) | (232) |
Total sales, net | 29,029 | 26,435 | 87,133 | 61,105 |
Dore | ||||
Disaggregation of Revenue [Line Items] | ||||
Less: Treatment and refining charges | (21) | (67) | (112) | (212) |
Total sales, net | 1,651 | 2,306 | 7,347 | 7,175 |
Gold Dore | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales, net | 1,634 | 1,495 | 6,816 | 5,155 |
Silver Dore | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales, net | 38 | 878 | 643 | 2,232 |
Concentrate | ||||
Disaggregation of Revenue [Line Items] | ||||
Less: Treatment and refining charges | (2,307) | (5,795) | (8,098) | (14,930) |
Total sales, net | 27,856 | 23,579 | 79,630 | 53,912 |
Gold Concentrate | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales, net | 8,709 | 5,211 | 22,904 | 13,894 |
Silver Concentrate | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales, net | 6,179 | 6,857 | 19,443 | 14,638 |
Copper Concentrate | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales, net | 2,447 | 2,911 | 9,547 | 6,470 |
Lead Concentrate | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales, net | 3,641 | 3,501 | 8,641 | 8,730 |
Zinc Concentrate | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales, net | $ 9,187 | $ 10,894 | $ 27,193 | $ 25,110 |
Gold and Silver Rounds_Bullio_2
Gold and Silver Rounds/Bullion (Details) $ in Thousands | Sep. 30, 2021USD ($)oz$ / oz | Dec. 31, 2020USD ($)oz$ / oz |
Schedule of Investments [Line Items] | ||
Total carrying value | $ 559 | $ 671 |
Gold | ||
Schedule of Investments [Line Items] | ||
Ounces | oz | 176 | 189 |
Carrying value per ounce | $ / oz | 1,743 | 1,888 |
Total carrying value | $ 307 | $ 357 |
Silver | ||
Schedule of Investments [Line Items] | ||
Ounces | oz | 11,715 | 11,842 |
Carrying value per ounce | $ / oz | 21.53 | 26.49 |
Total carrying value | $ 252 | $ 314 |
Inventories, net (Details)
Inventories, net (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | |
Stockpiles - underground mine | $ 796 | $ 648 | |
Stockpiles - open pit mine | 41 | ||
Concentrates | 1,745 | 1,919 | |
Dore, net | [1] | 602 | 459 |
Subtotal - product inventories | 3,143 | 3,067 | |
Materials and supplies | [2] | 7,733 | 6,928 |
Total | 10,876 | 9,995 | |
Dore | |||
Inventory reserve | 0 | 368 | |
Materials and supplies | |||
Inventory reserve | $ 209 | $ 209 | |
[1] | Net of reserve of nil and $368 at September 30, 2021 and December 31, 2020, respectively. | ||
[2] | Net of reserve for obsolescence of $209 both as of September 30, 2021 and December 31, 2020 . |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income tax expense | $ 2,352,000 | $ 2,931,000 | $ 6,697,000 | $ (420,000) |
Effective tax rate | 21.00% | |||
Mining duty over sales of gold and silver | 0.50% | |||
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% | |||
Mexico | ||||
MITL corporate income tax rate | 37.50% | 37.50% | ||
MITL corporate income tax rate excluding mining tax | 30.00% | |||
Mining tax rate | 7.50% | |||
Prior MITL Deductable Percentage | 100.00% | |||
Exploration Expense Maximum Annual Deductable Percentage | 10.00% | |||
Exploration Expense Period | 10 years | |||
CANADA | ||||
Canada income tax rate | 26.50% | 26.50% |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Prepaid Expenses And Other Current Assets | ||
Advances to suppliers | $ 247 | $ 374 |
Prepaid insurance | 1,763 | 709 |
IVA taxes receivable, net | 665 | 846 |
Other current assets | 324 | 647 |
Total | $ 2,999 | $ 2,576 |
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, 2021 | Dec. 31, 2020 | |
Property, equipment and mine development - net | |||
Property and equipment, gross | [1] | $ 167,632 | $ 153,595 |
Accumulated depreciation and amortization | (101,315) | (91,084) | |
Total property, equipment and mine development - net | 66,317 | 62,511 | |
Accrued capital expenditures | 1,000 | 1,000 | |
Asset retirement costs | |||
Property, equipment and mine development - net | |||
Property and equipment, gross | 1,071 | 1,064 | |
Construction-in-progress | |||
Property, equipment and mine development - net | |||
Property and equipment, gross | 13,265 | 7,158 | |
Furniture and office equipment | |||
Property, equipment and mine development - net | |||
Property and equipment, gross | 1,896 | 1,839 | |
Land | |||
Property, equipment and mine development - net | |||
Property and equipment, gross | 230 | 230 | |
Light vehicles and other mobile equipment | |||
Property, equipment and mine development - net | |||
Property and equipment, gross | 2,236 | 2,192 | |
Machinery and equipment | |||
Property, equipment and mine development - net | |||
Property and equipment, gross | 33,083 | 31,227 | |
Mill facilities and infrastructure | |||
Property, equipment and mine development - net | |||
Property and equipment, gross | 24,455 | 24,407 | |
Mine Development | |||
Property, equipment and mine development - net | |||
Property and equipment, gross | 89,760 | 83,859 | |
Software and licenses | |||
Property, equipment and mine development - net | |||
Property and equipment, gross | $ 1,636 | $ 1,619 | |
[1] | Includes accrued capital expenditures of $1.0 million both at September 30, 2021 and December 31, 2020. |
Property, Plant and Mine Deve_4
Property, Plant and Mine Development, net - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Property, Plant and Mine Development, net | ||||
Depreciation and amortization expense | $ 3,521 | $ 4,340 | $ 11,299 | $ 13,537 |
Accrued Expenses and Other Li_3
Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Accrued royalty payments | $ 1,401 | $ 1,796 |
Dividends payable | 247 | |
Zinc derivatives | 144 | |
Employee profit sharing obligation | 1,569 | |
Other payables | 774 | 232 |
Total accrued expenses and other current liabilities | 3,888 | 2,275 |
Other Liabilities, Noncurrent [Abstract] | ||
Accrued non-current labor obligation | 682 | |
Deferred stock unit ("DSU") compensation liability | 204 | |
Other long-term liabilities | 15 | 13 |
Total other non-current liabilities | 901 | $ 13 |
Other Long-term Liabilities And Other Expenses [member] | ||
Other Liabilities, Noncurrent [Abstract] | ||
Accrued non-current labor obligation | $ 700 | |
Deferred Profit Sharing [Member] | ||
Other Liabilities, Noncurrent [Abstract] | ||
Percentage of statutory profit sharing payable | 10.00% | |
Deferred Profit Sharing [Member] | Current Liabilities And Production Cost [Member] | ||
Employee profit sharing obligation | $ 1,600 |
Reclamation and Remediation (De
Reclamation and Remediation (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Asset Retirement Obligation, Roll Forward Analysis | ||
Reclamation liabilities - balance at beginning of period | $ 1,890 | $ 2,003 |
Foreign currency exchange loss (gain) | (34) | (113) |
Reclamation liabilities - balance at end of period | 1,856 | 1,890 |
Asset retirement obligation - balance at beginning of period | 1,208 | 1,105 |
Changes in estimate | 7 | 82 |
Accretion | 72 | 79 |
Foreign currency exchange loss (gain) | (22) | (58) |
Asset retirement obligation - balance at end of period | 1,265 | 1,208 |
Total period end balance | $ 3,121 | $ 3,098 |
Reclamation and Remediation - N
Reclamation and Remediation - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Asset Retirement Obligation | $ 1,265 | $ 1,208 | $ 1,105 |
Reclamation and remediation discount rate | 8.00% | ||
Reclamation Liabilities | $ 1,856 | 1,890 | $ 2,003 |
Don David Gold Mine | |||
Asset Retirement Obligation | 1,300 | 1,200 | |
Reclamation Liabilities | $ 1,900 | $ 1,900 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Commitments and Contingencies | ||
Equipment purchase commitments | $ 0.4 | $ 0.4 |
Derivatives (Details)
Derivatives (Details) $ in Thousands | Oct. 11, 2021$ / tt | Sep. 30, 2021USD ($)$ / t | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)$ / oz$ / ttoz | Sep. 30, 2020USD ($) |
Embedded Derivative [Line Items] | |||||
Unsettled sales contracts value | $ 19,741 | ||||
Realized loss | $ (246) | $ 653 | 204 | $ 250 | |
Unrealized loss | $ (232) | $ (103) | $ (48) | $ (232) | |
Gold | |||||
Embedded Derivative [Line Items] | |||||
Under contract | oz | 2,579 | ||||
Average forward price | $ / oz | 1,770 | ||||
Unsettled sales contracts value | $ 4,565 | ||||
Silver | |||||
Embedded Derivative [Line Items] | |||||
Under contract | oz | 118,576 | ||||
Average forward price | $ / oz | 23.07 | ||||
Unsettled sales contracts value | $ 2,736 | ||||
Copper | |||||
Embedded Derivative [Line Items] | |||||
Under contract | t | 146 | ||||
Average forward price | $ / t | 9,324 | ||||
Unsettled sales contracts value | $ 1,361 | ||||
Lead | |||||
Embedded Derivative [Line Items] | |||||
Under contract | t | 740 | ||||
Average forward price | $ / t | 2,261 | ||||
Unsettled sales contracts value | $ 1,673 | ||||
Zinc | |||||
Embedded Derivative [Line Items] | |||||
Under contract | t | 3,148 | ||||
Average forward price | $ / t | 2,988 | ||||
Unsettled sales contracts value | $ 9,406 | ||||
Average price | $ / t | 3,042 | 3,042 | |||
Realized loss | $ 40 | ||||
Unrealized loss | $ 100 | ||||
Mark to market adjustment on number of tonnes | t | 2,550 | ||||
Call option sold price per tonne | $ / t | 3,200 | 2,992 | |||
Call option sold volume | t | 4,000 | 5,500 | |||
Derivative, Floor Price | $ / t | 2,910 | 2,860 | 2,860 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-based compensation expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Stock-Based Compensation | ||||
Stock options | $ 74 | $ 140 | $ 436 | $ 535 |
Restricted stock units | 87 | 165 | 71 | 640 |
Deferred stock units | (131) | 204 | ||
Total | $ 30 | $ 305 | $ 711 | $ 1,175 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
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 | $ 1.31 | |||||
Number of stock options exercised | 0 | 0 | 217,718 | 0 | ||
Accrued expenses and other current liabilities | $ 3,888 | $ 3,888 | $ 2,275 | |||
STIP | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Accrued expenses and other current liabilities | 400 | 400 | $ 0 | |||
Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Total intrinsic value | 100 | $ 200 | 100 | $ 400 | ||
Fair value | $ 100 | $ 300 | $ 100 | $ 500 | ||
Vested (in shares) | 49,755 | 58,133 | 52,797 | 93,205 | ||
Deferred Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of units Granted | 130,000 | |||||
Number of units Granted in lieu of board fees | 1,960 | 1,960 | ||||
Additional disclosures | ||||||
Vesting period | 10 years | |||||
Deferred stock units liability | $ 200 | $ 200 | ||||
Deferred stock units expense | $ 200 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | May 31, 2021 | Dec. 31, 2020 | Apr. 03, 2018 | |
Value of shares issued | $ 6,874 | $ 18,774 | ||||||
Cash dividend rate declared, per common share | $ 0.01 | $ 0.03 | ||||||
Common Stock, Dividends, Per Share, Declared and Paid | $ 0.01 | $ 0.03 | ||||||
Dividends paid | $ 700 | $ 700 | $ 2,500 | $ 2,100 | ||||
Common stock, shares authorized | 200,000,000 | 200,000,000 | 200,000,000 | 100,000,000 | 200,000,000 | |||
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | |||||
ATM Agreement | ||||||||
Sale of shares | 0 | 1,705,323 | 0 | 6,039,823 | ||||
Value of shares issued | $ 6,800 | $ 18,700 | ||||||
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, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Other (Income) Expense, net | ||||
Unrealized currency exchange (gain) loss | $ (59) | $ 163 | $ 257 | $ 221 |
Realized currency exchange loss (gain) | 24 | (76) | (35) | (191) |
Unrealized loss (gain) from gold and silver rounds/bullion, net (1) | 55 | (716) | 86 | (1,175) |
Unrealized loss on zinc zero cost collar | 144 | 144 | ||
Realized loss on zinc zero cost collar | 40 | 40 | ||
Employee benefit obligation | 700 | |||
Other (income) expense | (30) | 30 | (465) | 102 |
Total | $ 174 | $ (599) | $ 727 | $ (1,043) |
Net Income per Common Share - N
Net Income per Common Share - Narrative (Details) - $ / shares shares in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Net Income per Common Share | ||
Stock options excluded from computation of diluted weighted average share outstanding | 2.1 | 3.6 |
Shares excluded from weighted average shares outstanding, exercise price | $ 5.11 | $ 8.97 |
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, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Net Income per Common Share | ||||
Net income (loss) from continuing operations | $ 1,529 | $ (251) | $ 5,339 | $ (3,212) |
Net income from discontinued operations, net of income taxes | 5,252 | 3,280 | ||
Net income | $ 1,529 | $ 5,001 | $ 5,339 | $ 68 |
Basic weighted average shares of common stock outstanding | 74,552,545 | 70,641,938 | 74,481,281 | 68,896,059 |
Dilutive effect of share-based awards | 345,975 | 402,590 | 360,814 | 393,290 |
Diluted weighted average common shares outstanding | 74,898,520 | 71,044,528 | 74,842,095 | 69,289,349 |
Basic and diluted net income (loss) per common share: | ||||
Continuing operations | $ 0.02 | $ 0.01 | $ 0.07 | $ (0.05) |
Discontinued operations | 0.06 | 0.05 | ||
Basic and diluted net income per common share | $ 0.02 | $ 0.07 | $ 0.07 | $ 0 |
Fair Value Measurement (Details
Fair Value Measurement (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net allowance for doubtful accounts | $ 100 | $ 200 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 29,544 | 25,405 |
Gold and silver rounds/bullion | 559 | 671 |
Derivative liability - zinc zero cost collar | (144) | |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Accounts receivable, net | $ 4,947 | $ 4,226 |
Fair Value Measurement - Statem
Fair Value Measurement - Statement Of Income Classification (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Fair Value Statement Of Income Classification [Line Items] | ||||
Realized loss on zinc zero cost collar | $ 40 | $ 40 | ||
Sales, net | ||||
Fair Value Statement Of Income Classification [Line Items] | ||||
Realized/unrealized derivative (loss) gain, net | (478) | $ 550 | 156 | $ 18 |
Other expenses, net | ||||
Fair Value Statement Of Income Classification [Line Items] | ||||
Realized/unrealized gold and silver rounds/bullion gain (loss), net | $ (55) | $ 716 | $ (86) | $ 1,175 |
Fair Value Measurement - Realiz
Fair Value Measurement - Realized Unrealized Derivatives, net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Derivatives, Fair Value [Line Items] | ||||
Realized (loss) gain | $ (246) | $ 653 | $ 204 | $ 250 |
Unrealized (loss) gain | (232) | (103) | (48) | (232) |
Total realized/ unrealized derivatives, net | (478) | 550 | 156 | 18 |
Gold | ||||
Derivatives, Fair Value [Line Items] | ||||
Realized (loss) gain | (110) | 132 | (133) | 651 |
Unrealized (loss) gain | 28 | (11) | 58 | (209) |
Total realized/ unrealized derivatives, net | (82) | 121 | (75) | 442 |
Silver | ||||
Derivatives, Fair Value [Line Items] | ||||
Realized (loss) gain | (295) | 339 | (123) | 451 |
Unrealized (loss) gain | (11) | (47) | 10 | (290) |
Total realized/ unrealized derivatives, net | (306) | 292 | (113) | 161 |
Copper | ||||
Derivatives, Fair Value [Line Items] | ||||
Realized (loss) gain | (4) | 89 | 63 | 20 |
Unrealized (loss) gain | (16) | (24) | (24) | (9) |
Total realized/ unrealized derivatives, net | (20) | 65 | 39 | 11 |
Lead | ||||
Derivatives, Fair Value [Line Items] | ||||
Realized (loss) gain | 72 | 16 | 146 | (143) |
Unrealized (loss) gain | (84) | (10) | (63) | 41 |
Total realized/ unrealized derivatives, net | (12) | 6 | 83 | (102) |
Zinc | ||||
Derivatives, Fair Value [Line Items] | ||||
Realized (loss) gain | 91 | 77 | 251 | (729) |
Unrealized (loss) gain | (149) | (11) | (29) | 235 |
Total realized/ unrealized derivatives, net | $ (58) | $ 66 | $ 222 | $ (494) |
Supplementary Cash Flow Infor_3
Supplementary Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Supplementary Cash Flow Information | ||||
Unrealized loss (gain) on gold and silver rounds/bullion | $ 55 | $ (716) | $ 86 | $ (1,175) |
Unrealized foreign currency exchange (gain) loss | (59) | 163 | 257 | 221 |
Unrealized loss on zinc zero cost collar | 144 | 144 | ||
Other | (106) | 81 | (12) | 123 |
Total other operating adjustments | $ 34 | $ (472) | $ 475 | $ (831) |
COVID-19 Pandemic (Details)
COVID-19 Pandemic (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2021USD ($) | |
COVID-19 Pandemic | |
COVID-19 specific costs | $ 0.1 |