Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Mar. 09, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | ||||
Document Type | 10-K | |||
Document Annual Report | true | |||
Document Period End Date | Dec. 31, 2022 | |||
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 | 7900 E. Union Ave, | |||
Entity Address, Address Line Two | Suite 320, | |||
Entity Address, City or Town | Denver, | |||
Entity Address, State or Province | CO | |||
Entity Address, Postal Zip Code | 80237 | |||
City Area Code | 303 | |||
Local Phone Number | 320-7708 | |||
Title of 12(b) Security | Common Stock | |||
Trading Symbol | GORO | |||
Security Exchange Name | NYSEAMER | |||
Entity Well-known Seasoned Issuer | No | |||
Entity Voluntary Filers | No | |||
Entity Current Reporting Status | Yes | |||
Entity Interactive Data Current | Yes | |||
Entity Filer Category | Accelerated Filer | |||
Entity Small Business | true | |||
Entity Emerging Growth Company | false | |||
ICFR Auditor Attestation Flag | true | |||
Entity Shell Company | false | |||
Entity Common Stock, Shares Outstanding | 88,398,109 | |||
Entity Public Float | $ 143,742,704 | |||
Amendment Flag | false | |||
Document Fiscal Year Focus | 2022 | |||
Document Fiscal Period Focus | FY | |||
Entity Central Index Key | 0001160791 | |||
Current Fiscal Year End Date | --12-31 | |||
Auditor Name | BDO USA, LLP | Plante & Moran, PLLC | ||
Auditor Firm ID | 243 | 166 | ||
Auditor Location | Spokane, Washington | Denver, Colorado |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 23,675 | $ 33,712 |
Accounts receivable, net | 5,085 | 8,672 |
Inventories, net | 13,500 | 10,361 |
Promissory note | 3,885 | |
Prepaid expenses and other current assets | 3,839 | 2,285 |
Total current assets | 46,099 | 58,915 |
Property, plant and mine development, net | 152,563 | 156,771 |
Other non-current assets | 5,509 | 76 |
Total assets | 204,171 | 215,762 |
Current liabilities: | ||
Accounts payable | 13,329 | 13,308 |
Income taxes payable, net | 6,801 | |
Mining royalty taxes payable, net | 3,945 | 2,975 |
Zinc zero cost collar | 1,844 | |
Contingent consideration | 2,211 | |
Accrued expenses and other current liabilities | 5,197 | 4,731 |
Total current liabilities | 24,682 | 29,659 |
Reclamation and remediation liabilities | 10,366 | 3,112 |
Gold and silver stream agreements liability | 43,466 | 42,560 |
Deferred tax liabilities, net | 9,224 | 13,126 |
Contingent consideration | 2,179 | 4,603 |
Other non-current liabilities | 2,490 | 1,952 |
Total liabilities | 92,407 | 95,012 |
Shareholders' equity: | ||
Common stock - $0.001 par value, 200,000,000 shares authorized: 88,398,109 and 88,338,774 shares outstanding at December 31, 2022 and December 31, 2021, respectively | 89 | 89 |
Additional paid-in capital | 111,024 | 110,153 |
Retained earnings | 7,706 | 17,563 |
Treasury stock at cost, 336,398 shares | (5,884) | (5,884) |
Accumulated other comprehensive loss | (1,171) | (1,171) |
Total shareholders' equity | 111,764 | 120,750 |
Total liabilities and shareholders' equity | $ 204,171 | $ 215,762 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
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 | 88,398,109 | 88,338,774 |
Treasury stock, shares | 336,398 | 336,398 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Sales, net | $ 138,724 | $ 125,196 |
Cost of sales: | ||
Production costs | 80,949 | 72,234 |
Depreciation and amortization | 27,226 | 15,996 |
Reclamation and remediation | 801 | 219 |
Total cost of sales | 108,976 | 88,449 |
Mine gross profit | 29,748 | 36,747 |
Costs and expenses: | ||
General and administrative expenses | 8,048 | 6,900 |
Exploration expenses | 13,049 | 4,886 |
Restructuring expenses | 2,423 | |
Stock-based compensation | 1,955 | 875 |
Realized and unrealized loss on zinc zero cost collar | 170 | 3,000 |
Other expense, net | 4,288 | 1,020 |
Total costs and expenses | 27,510 | 19,104 |
Income before income taxes | 2,238 | 17,643 |
Provision for income taxes | 8,559 | 9,615 |
Net (loss) income | $ (6,321) | $ 8,028 |
Net (loss) income per common share: | ||
Basic net (loss) income per common share | $ (0.07) | $ 0.11 |
Diluted net (loss) income per common share | $ (0.07) | $ 0.11 |
Weighted average shares outstanding: | ||
Basic | 88,368,250 | 75,301,253 |
Diluted | 88,368,250 | 75,608,627 |
Oaxaca, Mexico | ||
Costs and expenses: | ||
Exploration expenses | $ 4,244 | $ 4,831 |
Michigan, USA | ||
Costs and expenses: | ||
Exploration expenses | $ 8,805 | $ 55 |
CONSOLIDATED STATEMENTS OF CHAN
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, 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 | |||||
Stock-based compensation | 671 | 671 | ||||
Stock options exercised - settled in cash | 288 | $ 288 | ||||
Stock options exercised - settled in cash (in shares) | 237,719 | 253,335 | ||||
Common stock issued for vested restricted stock units (in shares) | 75,262 | |||||
Dividends declared | (3,118) | $ (3,118) | ||||
Issuance of stock, net of issuance costs | $ 14 | 24,536 | 24,550 | |||
Issuance of stock, net of issuance costs (in shares) | 13,714,630 | |||||
Surrender of stock for taxes due on vesting | (207) | (207) | ||||
Surrender of stock for taxes due on vesting (in shares) | (65,795) | |||||
Net income | 8,028 | 8,028 | ||||
Balance at Dec. 31, 2021 | 110,153 | 17,563 | (5,884) | (1,171) | 120,750 | |
Balance (in shares) at Dec. 31, 2021 | 88,675,172 | |||||
Balance at Dec. 31, 2021 | $ 89 | 89 | ||||
Stock-based compensation | 1,240 | 1,240 | ||||
Stock options exercised - settled in cash | (331) | $ (331) | ||||
Stock options exercised - settled in cash (in shares) | 355,000 | |||||
Common stock issued for vested restricted stock units (in shares) | 80,169 | |||||
Dividends declared | (3,536) | $ (3,536) | ||||
Unclaimed shares related to the Aquila acquisition | (29) | (29) | ||||
Unclaimed shares related to the Aquila acquisition (in shares) | (16,249) | |||||
Surrender of stock for taxes due on vesting | (9) | (9) | ||||
Surrender of stock for taxes due on vesting (in shares) | (4,585) | |||||
Net income | (6,321) | (6,321) | ||||
Balance at Dec. 31, 2022 | $ 111,024 | $ 7,706 | $ (5,884) | $ (1,171) | 111,764 | |
Balance (in shares) at Dec. 31, 2022 | 88,734,507 | |||||
Balance at Dec. 31, 2022 | $ 89 | $ 89 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY | ||
Cash dividends declared per share | $ 0.04 | $ 0.04 |
Cash dividends paid per share | $ 0.04 | $ 0.0433 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (6,321) | $ 8,028 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Deferred income tax benefit | (3,545) | (2,216) |
Depreciation and amortization, including amortization in reclamation | 27,364 | 16,147 |
Stock-based compensation | 1,955 | 875 |
Other operating adjustments | 44 | 2,707 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 3,587 | (4,446) |
Inventories | (2,550) | (708) |
Prepaid expenses and other current assets | (724) | (263) |
Other noncurrent assets | 249 | (8) |
Accounts payable and other accrued liabilities | 284 | 5,930 |
Mining royalty and income taxes payable, net | (6,186) | 8,737 |
Net cash provided by operating activities | 14,157 | 34,783 |
Cash flows from investing activities: | ||
Capital expenditures | (18,233) | (20,610) |
Equity investment | (1,743) | |
Cash acquisition costs, net of cash acquired | (2,363) | |
Proceeds from the sale of gold and silver rounds | 533 | |
Net cash used in investing activities | (19,443) | (22,973) |
Cash flows from financing activities: | ||
Proceeds (for) from the exercise of stock options | (376) | 300 |
Dividends paid | (3,536) | (3,366) |
Other financing activities | 3 | |
Net cash used in financing activities | (3,912) | (3,063) |
Effect of exchange rate changes on cash and cash equivalents | (839) | (440) |
Net (decrease) increase in cash and cash equivalents | (10,037) | 8,307 |
Cash and cash equivalents at beginning of period | 33,712 | 25,405 |
Cash and cash equivalents at end of period | $ 23,675 | $ 33,712 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Supplemental Cash Flow Information | ||
Income and mining taxes paid | $ 18,594 | $ 4,939 |
Non-cash investing activities and financing: | ||
Change in capital expenditures in accounts payable | (410) | 684 |
Change in estimate for asset retirement costs | 6,384 | 7 |
Green Light Metals shares received for promissory note | 3,611 | |
Issuance (cancellation) of shares related to the Aquila acquisition | $ (29) | $ 24,550 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Nature of Operations and Summary of Significant Accounting Policies | |
Nature of Operations and Summary of Significant Accounting Policies | 1. Nature of Operations and Summary of Significant Accounting Policies Nature of Operations Gold Resource Corporation (the “Company”) was organized under the laws of the State of Colorado on August 24, 1998. The Company is a producer of doré containing gold and silver and metal concentrates that contain gold, silver, copper, lead, and zinc in Oaxaca, Mexico. The Company also has 100% interest in the Back Forty Project, an advanced Exploration Stage Property, located in Menominee County, Michigan, USA. Acquisition On December 10, 2021, the Company completed the acquisition of all the issued and outstanding common shares of Aquila Resources Inc. Aquila’s principal asset is its 100% interest in the Back Forty Project located in Menominee County, Michigan, USA. The Back Forty Project has a polymetallic (gold, silver, copper, silver, lead, and zinc) Volcanogenic Massive Sulfide deposit. The Back Forty Project controls surface and mineral rights through ownership, leases with the State of Michigan, and royalties with private parties. The Company considered the appropriate accounting treatment with regards to the Financial Accounting Standards Board’s Accounting Standards Codification (“ASC”) 805 Business Combinations and determined it was appropriate to account for this transaction as an asset acquisition. Please see Note 23—Aquila Acquisition Item 8—Financial Statements and Supplementary Data Significant Accounting Policies Basis of Presentation The consolidated financial statements included herein are expressed in United States dollars and conform to accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include the accounts of the Company, its Mexican subsidiary, Don David Gold Mexico S.A. de C.V., and Aquila and its subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. Asset Acquisition The Company considers the appropriate accounting treatment with regards to the Financial Accounting Standards Board’s ASC 805 Business Combinations for all material merger and acquisition transactions as they occur. The facts and circumstances of each transaction are evaluated to determine the appropriate accounting. Please see Note 23—Aquila Acquisition Item 8—Financial Statements and Supplementary Data Segment Reporting The Company has organized its operations into three geographic regions. The geographic regions include Oaxaca, Mexico, Michigan, U.S.A., and Corporate and Other. Oaxaca, Mexico represents the Company’s only production stage property. Michigan, U.S.A. is an advanced exploration stage property. The Company’s business activities that are not considered production stage or advanced exploration stage properties are included in Corporate and Other . Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. The more significant areas requiring the use of management estimates and assumptions relate to Mineral Resources and Mineral Reserves that are the basis for future cash flow estimates utilized in impairment calculations and units-of-production depreciation calculations; asset and liability valuation related to acquisitions; accounting for asset acquisitions; future metal prices, especially as it relates to zinc zero cost collar; environmental remediation, reclamation and closure obligations; estimates of recoverable gold and other minerals in stockpiles; write-downs of inventory, stockpiles to net realizable value; valuation allowances for deferred tax assets and liabilities; valuation of contingent considerations and gold and silver stream agreements, provisional amounts related to income tax effects of newly enacted tax laws; and stock-based compensation. Management routinely makes judgments and estimates about the effects of matters that are inherently uncertain and bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances. Actual results could differ from these estimates. Reclassifications Certain amounts presented in prior periods have been reclassified to conform to the current period presentation. Starting in 2022, the Company stopped presenting Gold and Silver Rounds as a separate line item in the Consolidated Balance Sheets. Gold and Silver Rounds are now included within prepaid expenses and other current assets. In 2021, accrued expenses and other current liabilities included the liability for the zinc zero cost collar, which is presented in a separate line on the Consolidated Balance Sheets in 2022. In 2021, exploration expenses included both the Don David Gold Mine (“DDGM”) exploration expenses and the Back Forty Project expenses. In 2022, these are presented on separate lines in the Consolidated Statements of Operations. The reclassifications had no effect on the Company’s results of operations or financial condition. Cash and Cash Equivalents Cash and cash equivalents consist of all cash balances and highly liquid investments with a remaining maturity of three months or less when purchased. Cash held in Mexican Pesos or Canadian Dollars is converted to U.S. Dollars at the closing exchange rate at year end. Accounts Receivable, net Accounts receivable consists of trade receivables, which are recorded net of allowance for doubtful accounts from the sale of doré and metals concentrates, as well as net of an embedded derivative based on mark-to-market adjustments for outstanding provisional invoices based on forward metal prices. Please see Note 14—Derivatives Note 20—Fair Value Measurement Item 8—Financial Statements and Supplementary Data Inventories The major inventory categories are set forth below: Stockpile Inventories : Concentrate Inventories Doré Inventory: Materials and Supplies Inventories Write-downs of inventory are charged to production costs on the Consolidated Statements of Operations. Promissory Note A promissory note was acquired in the Aquila Transaction. In October 2021, Aquila sold its Wisconsin assets to Green Light Metals in return for a C$4.9 million ($3.9 million) promissory note. Upon maturity on December 28, 2022, the Company received 12,250,000 private shares of Green Light Metals, which settled the promissory note. The shares received represent 28.5% ownership in Green Light Metals. As of December 31, 2022, the balance of the promissory note receivable was zero. Management chose to account for this investment in Green Light Metals using the fair value option. Please see Note 3—Promissory Note Note 8—Other Non-current Assets Item 8—Financial Statements and Supplementary Data Property, Plant, and Mine Development Land and Mineral Interests : Mine Development : Drilling costs incurred during the production phase for operational ore control are recorded as mine development and amortized using UOP. All other drilling and related costs are expensed as incurred. Mine development costs are amortized using the UOP method based on estimated recoverable ounces in Mineral Reserves. Property and Equipment Construction in Progress Depreciation and Amortization Range of Lives Asset retirement costs UOP Furniture, computer and office equipment 3 to 10 years Light vehicles and other mobile equipment 4 years Machinery and equipment UOP to 8 years Mill facilities and related infrastructure UOP Mine development and mineral interests UOP Buildings and infrastructure UOP to 4 years Impairment of Long-Lived Assets The Company evaluates its long-lived assets for impairment when events or changes in circumstances indicate that the related carrying amounts may not be recoverable. Asset impairment is considered to exist if the total estimated future cash flows on an undiscounted basis are less than the carrying amount of the asset. If an impairment is indicated, a determination is made whether an impairment has occurred. Impairment losses are measured either 1) as the excess of carrying value over the total discounted estimated future cash flows, or 2) as the excess of carrying value over the fair value, using the expected fair value technique in the absence of an observable market price. Losses are charged to expense on the Company’s Consolidated Statements of Operations. In estimating future cash flows, assets are grouped at the lowest level for which there are identifiable cash flows that are largely independent of future cash flows from other asset groups. Existing Mineral Resources and Mineral Reserves are included when estimating the fair value in determining whether the assets are impaired. The Company’s estimates of future cash flows are based on numerous assumptions, including expected gold and other commodity prices, production levels and costs, processing recoveries, capital requirements, and estimated salvage values. It is possible that actual future cash flows will be significantly different from the estimates, as actual future quantities of recoverable minerals, gold and other commodity prices, production levels and costs, and capital requirements are each subject to significant risks and uncertainties. Fair Value of Financial Instruments The recorded amounts of cash and cash equivalents, receivables from provisional concentrate sales, and accounts payable approximate fair value because of the short maturity of those instruments. The recorded amounts for the zinc zero cost collar are based on the London Metal Exchange forward underlying price over a period from the trade date to the payment date. The recorded amount for the equity investment in the common shares of Maritime is based on the closing share price of MAE.V on TSX-V. The company elected the fair value measurement option as the measurement basis for the equity investment in the common shares of Green Light Metals. Treasury Stock Treasury stock represents shares of the Company’s common stock which have been repurchased on the open market at the prevailing market price at the time of purchase and have not been canceled. Treasury stock is shown at cost as a separate component of equity. Revenue Recognition The Company recognizes revenue from doré and concentrate sales. Doré sales Concentrate sales Production Costs Production costs include labor and benefits, royalties, concentrate and doré shipping costs, mining costs, fuel and lubricants, legal and professional fees related to mine operations, stock-based compensation attributable to mine workers, materials and supplies, repairs and maintenance, explosives, site support, housing and food, insurance, reagents, travel, medical services, security equipment, office rent, tools, and other costs that support mining operations. Exploration Costs Exploration costs are charged to expense as incurred. Costs to identify new Mineral Resources and to evaluate potential Mineral Resources are considered exploration costs. Exploration activities conducted within the defined Mineral Resources are capitalized. Stock-Based Compensation The Company accounts for stock-based compensation under the fair value recognition and measurement provisions of U.S. GAAP. Those provisions require all stock-based payments, including grants of stock options, restricted stock units (“RSUs”), performance share units (“PSUs”), and deferred share units (“DSUs”) to be measured based on the grant date fair value of the awards, with the resulting expense generally recognized on a straight-line basis in the Consolidated Statements of Operations over the period during which services are performed in exchange for the award. The majority of the awards are earned over a service period of three years. DSUs are earned immediately at grant and are expected to be paid out in cash in the future. PSUs and DSUs are considered liability instruments and marked-to-market each reporting period. The Company's estimates may be impacted by certain variables including, but not limited to, stock price volatility, employee stock option exercise behaviors, additional stock option grants, and estimates of forfeitures. Reclamation and Remediation Costs Reclamation costs are allocated to expense over the life of the related assets and are periodically adjusted to reflect changes in the estimated present value resulting from the passage of time and revisions to the estimates of either the timing or amount of the reclamation and remediation costs. Reclamation obligations are based in part on when the spending for an existing environmental disturbance will occur. The Company reviews the reclamation obligation at least on an annual basis. In 2014, the Company became a production stage company and therefore, started capitalizing asset retirement costs along with the asset retirement obligation. Please see Note 11—Reclamation and Remediation Item 8—Financial Statements and Supplementary Data Accounting for reclamation and remediation obligations requires management to make estimates unique to each mining operation of the future costs expected to be incurred to complete the reclamation and remediation work required to comply with existing laws and regulations. Actual costs incurred in future periods could differ from the amounts estimated. Additionally, future changes to environmental laws and regulations could increase the extent of reclamation and remediation work required. Any such increases in future costs could materially impact the amounts charged to operations for reclamation and remediation. Accumulated Other Comprehensive Loss Accumulated other comprehensive loss is presented in the consolidated statements of changes in shareholders’ equity. Accumulated other comprehensive loss is composed of foreign currency translation adjustment effects related to the historical adjustment when the functional currency was the Mexican peso for our Mexico subsidiary. This loss will remain on our Consolidated Balance Sheets until the sale or dissolution of our Mexico subsidiary. Income and Mining Royalty Taxes Income and Mining Royalty Taxes are computed using the asset and liability method. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial and tax reporting purposes and the effect of net operating loss and foreign tax credit carryforwards using enacted tax rates in effect in the years in which the differences are expected to reverse. Deferred tax assets are evaluated to determine if it is more likely than not that they will be realized. Please see Note 5—Income Taxes Item 8—Financial Statements and Supplementary Data Net Income Per Share Basic earnings per share is calculated based on the weighted average number of common shares outstanding for the period. Diluted income per share reflects the dilution that could occur if potentially dilutive securities, as determined using the treasury stock method, are converted into common stock. Potentially dilutive securities are excluded from the calculation when their inclusion would be anti-dilutive, such as periods when a net loss is reported or when the exercise price of the instrument exceeds the average fair market value of the underlying common stock. Foreign Currency The functional currency for all of the Company’s subsidiaries is the United States dollar (“U.S. dollar”). Concentration of Credit Risk The Company has considered and assessed the credit risk resulting from its concentrate sales and doré sales arrangements with its customers. In the event that the Company’s relationships with its customers are interrupted for any reason, the Company believes that it would be able to locate another entity to purchase its metals concentrates and doré bars; however, any interruption could temporarily disrupt the Company’s sale of its products and materially adversely affect operating results. The Company’s Arista and Alta Gracia mines, which are located in the State of Oaxaca, Mexico, accounted for 100% of the Company’s total net sales from operations for the years ended December 31, 2022 and 2021. Some of the Company’s operating cash balances are maintained in accounts that currently exceed federally insured limits. The Company believes that the financial strength of the depositing institutions mitigates the underlying risk of loss. To date, these concentrations of credit risk have not had a significant impact on the Company’s financial position or results of operations. Streaming Liabilities The Company presents the gold and silver streaming liabilities initially at fair value and subsequently accreted using a discount rate and risk factor probabilities. The discount rate is the Company’s estimated borrowing rate, and the probabilities consider the completion of the feasibility study, obtaining necessary permits, and the completion of the mine facilities. The adjustment in the value is the accretion of interest, which is booked as other expense. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2022 | |
Revenue | |
Revenue | 2. Revenue The Company derives its revenue from the sale of doré and concentrates. The following table presents the Company’s net sales disaggregated by source: For the year ended December 31, 2022 2021 (in thousands) Doré sales, net Gold $ 7,997 $ 8,120 Silver 230 678 Less: Refining charges (59) (136) Total doré sales, net 8,168 8,662 Concentrate sales Gold 46,322 32,593 Silver 22,527 26,095 Copper 11,987 13,495 Lead 11,626 13,442 Zinc 50,470 41,256 Less: Treatment and refining charges (12,013) (11,349) Total concentrate sales, net 130,919 115,532 Realized (loss) gain - embedded derivative, net (1) (720) 777 Unrealized gain - embedded derivative, net 357 225 Total sales, net $ 138,724 $ 125,196 (1) Copper, lead, and zinc are co-products. In the realized (loss) gain - embedded derivative, net, there are $0.7 million loss and $0.8 million gain, respectively, related to these co-products for the twelve months ended December 31, 2022 and 2021. |
Promissory Note
Promissory Note | 12 Months Ended |
Dec. 31, 2022 | |
Promissory Note. | |
Promissory Note | 3. Promissory Note A promissory note was acquired in the Aquila acquisition in December 2021. In October 2021, Aquila sold its Wisconsin assets to Green Light Metals in return for a C$4.9 million ($3.9 million) promissory note. In June 2022, an amended agreement was executed. Under the amended promissory note, Green Light Metals was to deliver C$4.9 million in Green Light Metal common shares once Green Light Metals went public, or private shares of Green Light Metals at the maturity date of December 31, 2022, whichever occurred first. In December 2022, a second amended agreement was executed (1) amending the maturity date to December 28, 2022, (2) clarifying the definition of “qualified financing” which set the value to C$0.40 per share for the common shares that were to be issued at maturity; and (3) adding a top-up provision that would result in additional common shares being issued to the Company if any Green Light Metals financing was raised at less than C$0.40 per share before March 31, 2023, essentially preventing dilution and ensuring that the total value of the Green Light Metals shares held by the Company at March 31, 2023 remains C$4.9 million. Upon maturity on December 28, 2022, the Company received 12,250,000 private shares of Green Light Metals, which settled the promissory note. Consequently, as of December 31, 2022, the balance of the promissory note receivable is zero. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2022 | |
Inventories | |
Inventories | 4. Inventories At December 31, 2022 and 2021, current inventories consisted of the following: As of As of December 31, December 31, 2022 2021 (in thousands) Stockpiles - underground mine $ 597 $ - Concentrates 3,271 2,048 Doré, net 653 452 Subtotal - product inventories 4,521 2,500 Materials and supplies (1) 8,979 7,861 Total $ 13,500 $ 10,361 (1) Net of reserve for obsolescence of $0.1 million and $0.4 million as of December 31, 2022 and 2021, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Taxes | |
Income Taxes | 5. Income Taxes The Company accounts for income taxes in accordance with the provisions of ASC 740, "Income Taxes" ("ASC 740") on a tax jurisdictional basis. The Company and its U.S. subsidiaries file U.S. tax returns and the Company’s foreign subsidiaries file tax returns in Mexico and in Canada. For financial reporting purposes, net income before income taxes includes the following components: Years Ended December 31, 2022 2021 (in thousands) U.S. Operations $ (18,317) $ (6,369) Foreign Operations (1) 20,555 24,012 Total income before income taxes $ 2,238 $ 17,643 (1) Foreign operations are predominantly in Mexico, as activities in Canada are minimal. The Company's income tax expense consists of the following: Years ended December 31, 2022 2021 (in thousands) Current taxes: State $ (254) $ 305 Foreign 12,358 11,426 Total current taxes $ 12,104 $ 11,731 Deferred taxes: Federal $ (895) $ - State 25 - Foreign (2,675) (2,116) Total deferred taxes $ (3,545) $ (2,116) Total income tax provision $ 8,559 $ 9,615 The provision for income taxes for the years ended December 31, 2022 and 2021, differs from the amount of income tax determined by applying the applicable United States statutory federal income tax rate to pre-tax income from operations as a result of the following differences: For the year ended December 31, 2022 2021 (in thousands) Tax at statutory rates $ 470 $ 3,705 Foreign rate differential 1,867 2,095 Changes in valuation allowance (5,115) (975) Tax losses subject to limitation 8,306 - Mexico mining tax 2,168 1,590 Foreign exchange 311 535 Stock option expiration 519 2,471 Mexico withholding tax 1,328 679 Deduction for inflation in Mexico (1,083) (981) U.S. state income tax (786) 514 Other 574 (18) Tax provision $ 8,559 $ 9,615 The Company has completed an estimate of Internal Revenue Code section 382 (“382”) net operating loss limitations related to ownership changes in connection with shares issued for the Back Forty Project acquisition and has written-off net operating losses of $24.8 million of federal and $35.6 million of Michigan, that would never become available due to the 382 loss limitations and the expiring loss carryforward periods. Approximately $51.1 million federal, and $16.6 million of Michigan net operating losses are subject to a 382 limitation, and the annual limitation going forward is approximately $1.3 million. The following table sets forth deferred tax assets and liabilities: As of December 31, 2022 2021 (in thousands) Non-current deferred tax assets: Tax loss carryforward $ 25,626 $ 29,496 Property, plant, and mine development 1,429 572 Share-based compensation 511 1,068 Foreign tax credits 4,089 4,089 Inventory 45 142 Foreign Mining Tax 1,106 793 Accrued Expenses 5,606 3,363 Gold and silver stream agreements liability 2,144 1,681 Employee profit sharing obligation 663 566 Zinc Derivatives - 608 Other 1,344 472 Total deferred tax assets $ 42,563 $ 42,850 Valuation allowance (31,818) (36,933) Deferred tax assets after valuation allowance $ 10,745 $ 5,917 Deferred tax liability – Property, plant and mine development (17,724) (16,722) Deferred tax liability – Other (2,245) (2,321) Total deferred tax liabilities $ (19,969) $ (19,043) Net deferred tax liability $ (9,224) $ (13,126) In accordance with ASC 740, the Company presents deferred tax assets net of its deferred tax liabilities on its Consolidated Balance Sheets. The net deferred tax liability of $9.2 million as of December 31, 2022 is primarily related to $14.6 million deferred tax liability related to Aquila, offset by $5.9 million deferred tax asset related to DDGM. The Company evaluates the evidence available to determine whether a valuation allowance is required on deferred tax assets. As of December 31, 2022, the Company determined that a valuation allowance of $31.8 million was necessary due to the uncertain utilization of specific deferred tax assets, primarily net operating loss carryforwards, in both U.S. and Canada; $21.8 million of the valuation allowance is related to Aquila. As of December 31, 2021, the Company determined that a valuation allowance of $36.9 million was necessary due to the uncertain utilization of specific deferred tax assets, primarily net operating loss carryforwards, in both U.S. and Canada; $27.5 million of the valuation allowance is related to Aquila. The net change in the Company’s valuation allowance was a decrease of $5.1 million for the year ended December 31, 2022. The decrease in the valuation allowance is primarily due to the tax effected write-off related to the 382 limitation discussed above. At December 31, 2022, the Company has U.S. federal loss carryforwards of $73.8 million, of which $47.2 million have no expiration date, and $26.6 million that expire at various dates between 2027 and 2037; U.S. Foreign Tax Credits of $4.1 million that expire at various dates between 2023 and 2026; federal capital loss carryforwards of $0.2 million that expire at various dates between 2023 and 2027; state of Colorado tax loss carryforwards of $47.3 million, of which $30.3 million expire at various dates between 2023 and 2037 and $17.0 million that have no expiration; state of Michigan tax loss carryforwards of $22.3 million expiring at various dates between 2023 and 2032; and Canadian tax loss carryforwards of $37.9 million that expire between 2026 and 2042. Mexico Mining Taxation Mining entities in Mexico are subject to two mining duties, in addition to the 30% Mexico corporate income tax: (i) a “special” mining duty of 7.5% of taxable income as defined under Mexican tax law (also referred to as “mining royalty tax”) on extraction activities performed by concession holders, and (ii) the “extraordinary” mining duty of 0.5% on gross revenue from the sale of gold, silver, and platinum. The mining royalty tax is generally applicable to earnings before income tax, depreciation, depletion, amortization, and interest. In calculating the mining royalty tax, there are no deductions related to depreciable costs from operational fixed assets, but prospecting and exploration expenses are amortized at 10% rate in a 10 year straight line. Both duties are tax deductible for income tax purposes. As a result, our effective tax rate applicable to the Company’s Mexican operations is substantially higher than Mexico’s statutory rate. The Company periodically transfers funds from its Mexican wholly-owned subsidiary to the U.S. in the form of dividends. Mexico requires a 10% withholding tax on dividends on all post-2013 earnings. The Company began distributing post-2013 earnings from Mexico in 2018. According to the existing U.S. – Mexico tax treaty, the dividend withholding tax between these countries is limited to 5% if certain requirements are met. The Company determined that it had met such requirements and paid a 5% withholding tax on dividends received from Mexico, and as a result, paid $1.3 million and $0.5 million for years ending December 31, 2022 and 2021, respectively. Other Tax Disclosures 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 are subject to an effective tax rate higher than 90% of the U.S. tax rate. The Company determined that it is not subject to GILTI tax due to this high tax exception rule. As of both December 31, 2022 and 2021, the Company believes that it has no uncertain tax positions that result in unrecognized tax benefits. If the Company were to determine there was an unrecognized tax benefit, the Company would recognize the liability and related interest and penalties within income tax expense. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Dec. 31, 2022 | |
Prepaid Expenses And Other Current Assets | |
Prepaid Expenses and Other Current Assets | 6 . Prepaid Expenses and Other Current Assets At December 31, 2022 and 2021, prepaid expenses and other current assets consisted of the following: As of As of December 31, December 31, 2022 2021 (in thousands) Advances to suppliers $ 867 $ 188 Prepaid insurance 1,298 1,222 Prepaid income tax 432 - Other current assets 1,242 875 Total $ 3,839 $ 2,285 IVA taxes receivable, net is a value added (“IVA”) tax in Mexico assessed on purchases of materials and services and sales of products. Likewise, businesses owe IVA taxes as the business sells a product and collects IVA taxes from its customers. Businesses are generally entitled to recover the taxes they have paid related to purchases of materials and services, either as a refund or credit to IVA tax payable. Amounts recorded as IVA taxes in the consolidated financial statements represent the net estimated IVA tax receivable or payable, since there is a legal right of offset of IVA taxes. As of December 31, 2022, this resulted in an asset balance of $0.8 million, which is included in other current assets above. In the past, the Company sponsored a physical dividend program which was concluded in 2021, and most of the gold and silver rounds the Company held were sold in the first quarter of 2022. The remaining gold and silver rounds are carried at quoted market prices based on the daily London P.M. fix as of the balance sheet date and are included in other current assets above. |
Property, Plant and Mine Develo
Property, Plant and Mine Development, net | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Mine Development, net | |
Property, Plant and Mine Development, net | 7. Property, Plant and Mine Development, net At December 31, 2022 and 2021, property, plant and mine development consisted of the following: As of As of December 31, December 31, 2022 2021 (in thousands) Asset retirement costs $ 7,449 $ 1,065 Construction-in-progress 351 15,854 Furniture and office equipment 1,732 1,685 Land 9,033 9,230 Mineral interest 79,543 79,964 Light vehicles and other mobile equipment 2,327 2,224 Machinery and equipment 41,343 33,213 Mill facilities and infrastructure 35,917 24,973 Mine Development 105,263 92,138 Software and licenses 1,552 1,592 Subtotal (1) 284,510 261,938 Accumulated depreciation and amortization (131,947) (105,167) Total $ 152,563 $ 156,771 (1) Includes capital expenditures in accounts payable and accruals of $1.3 million and $1.7 million at December 31, 2022 and 2021, respectively. Asset retirement costs of $6.4 million were recognized on December 31, 2022 due to changes in estimates in the reclamation model, also increasing the asset retirement obligations. Please see Note 11—Reclamation and Remediation Item 8—Financial Statements and Supplementary Data In the first quarter of 2022, the gold regrind and dry stack tailings projects were completed and transferred out from construction-in-progress to mill facilities and infrastructure. We also added various machinery and equipment to the process plant and the underground mine (including filter press trays, mine equipment, low profile concrete mixer, etc.). The Company recorded depreciation and amortization expense for the years ended December 31, 2022 and 2021 of $28.0 million and $16.1 million, respectively. |
Other Non-current Assets
Other Non-current Assets | 12 Months Ended |
Dec. 31, 2022 | |
Other Non-current Assets | |
Other Non-current Assets | 8 . Other Non-current Assets At December 31, 2022 and 2021, other non-current assets consisted of the following: As of As of December 31, December 31, 2022 2021 (in thousands) Equity Investment in Maritime $ 1,559 $ - Equity Investment in Green Light Metals 3,611 - Other non-current assets 339 76 Total $ 5,509 $ 76 On September 22, 2022, the Company invested C$2.4 million (or $1.7 million) in the common shares of Maritime Resources Corp. The 47 million shares purchased represent 9.9% of the issued and outstanding shares of Maritime. As of December 31, 2022, the value of the investment was $1.6 million. On December 28, 2022, Gold Resource Corporation received 12.25 million common shares of Green Light Metals as a settlement for the promissory note receivable. This represents approximately 28.5% ownership in Green Light Metals. As of December 31, 2022, the value of this equity investment was $3.6 million. The contract includes a top-up provision that would result in additional common shares being issued to the Company if any Green Light Metals financing was raised at less than C$0.40 per share before March 31, 2023. |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Accrued Expenses and Other Liabilities | |
Accrued Expenses and Other Liabilities | 9. Accrued Expenses and Other Liabilities At December 31, 2022 and 2021, accrued expenses and other current and non-current liabilities consisted of the following: As of As of December 31, December 31, 2022 2021 (in thousands) Accrued royalty payments $ 1,787 $ 1,743 Employee profit sharing obligation 2,206 1,888 Other payables 1,204 1,100 Total accrued expenses and other current liabilities $ 5,197 $ 4,731 Accrued non-current labor obligation $ 1,050 $ 920 Share-based compensation liability 884 206 Other long-term liabilities 556 826 Total other non-current liabilities $ 2,490 $ 1,952 On April 23, 2021, the Mexican Federation's Official Gazette published a decree that reforms labor outsourcing in Mexico. This new decree amends the outsourcing provisions, whereby operating companies can no longer 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 adopting the new legislation in 2021, $1.9 million for PTU was recorded in current liabilities and production cost, as well as $0.9 million for statutory employee severance benefits recorded in other long-term liabilities and other expenses. In 2022, $2.2 million for PTU was recorded in current liabilities and production costs, as well as $1.1 million for statutory employee severance benefits recorded in other long-term liabilities and other expenses. PSU and DSU awards contain a cash settlement feature and are therefore classified as liability instruments and are marked to fair value each reporting period. Please see Note 16— Stock-Based Compensation Item 8—Financial Statements and Supplementary Data As of December 31, 2022, and 2021, the Company has recorded in other non-current liabilities $0.4 million and $0.6 million, respectively, in liabilities to remediate exploration drill holes at the Back Forty Project in Michigan, USA. Upon completion of the optimized feasibility study and the related mine closure plan, an asset for asset retirement obligation and corresponding liability for reclamation and remediation will be recorded. |
Gold and Silver Stream Agreemen
Gold and Silver Stream Agreements | 12 Months Ended |
Dec. 31, 2022 | |
Gold and Silver Stream Agreements | |
Gold and Silver Stream Agreements | 10. Gold and Silver Stream Agreements The following table presents the Company’s liabilities related to the Gold and Silver Stream Agreements as of December 31, 2022 and 2021: As of As of December 31, December 31, 2022 2021 (in thousands) Liability related to the Gold Stream Agreement $ 20,881 $ 20,364 Liability related to the Silver Stream Agreement 22,585 22,196 Total liability $ 43,466 $ 42,560 Periodic interest expense incurred based on an implied interest rate. The implied interest rate is determined based on the timing and probability of future production and an 8% discount rate. Interest expense is recorded to the Consolidated Statements of Operations and the gold and silver stream agreement liability on the Consolidated Balance Sheet. Gold Streaming Agreement In November 2017, Aquila entered into a stream agreement with Osisko Bermuda Limited (“OBL”), a wholly-owned subsidiary of Osisko Gold Royalties Ltd (TSX & NYSE: OR), pursuant to which OBL agreed to commit approximately $55 million to Aquila through a gold stream purchase agreement. In June 2020, Aquila amended its agreement with Osisko, reducing the total committed amount to $50 million, as well as adjusting certain milestone dates under the gold stream to align with the current project development timeline. Aquila had received a total of $20 million of the committed funds at the time of the Gold Resource Corporation acquisition. Remaining deposits from OBL are $5 million upon receipt of permits required for the development and operation of the Back Forty Project and $25 million upon the first drawdown of an appropriate project debt finance facility. OBL has been provided a general security agreement over the Back Forty Project, which consists of the subsidiaries of Gold Resource Acquisition Sub. Inc., a 100% owned subsidiary of Gold Resource Corporation. The initial term of the agreement is for 40 years, automatically renewable for successive ten-year periods. The agreement is subject to certain operating and financial covenants, which are in good standing as of December 31, 2022. The $20 million received from OBL through December 31, 2022 is shown as a long-term liability on the Consolidated Balance Sheet, along with an implied interest. The implied interest rate is applied on OBL advance payments and calculated on the total expected life-of-mine production to be deliverable (as supported in the Back Forty Project Preliminary Economic Assessment) at December 31, 2022 closing gold and silver metal price and is discounted at 8.0%. As the remaining $30 million deposit is subject to the completion of certain milestones and the satisfaction of certain other conditions, this amount is not reflected on the Consolidated Balance Sheet. Per the terms of the gold stream agreement, OBL will purchase 18.5% of the refined gold from Back Forty (the “Threshold Stream Percentage”) until the Company has delivered 105,000 ounces of gold (the “Production Threshold”). Upon satisfaction of the Production Threshold, the Threshold Stream Percentage will be reduced to 9.25% of the refined gold (the “Tail Stream”). In exchange for the refined gold delivered under the Stream Agreement, OBL will pay the Company ongoing payments equal to 30% of the spot price of gold on the day of delivery, subject to a maximum payment of $600 per ounce. Where the market price of gold is greater than the price paid, the difference realized from the sale of the gold will be applied against the deposit received from Osisko. (See Note 12—Commitments and Contingencies Item 8—Financial Statements and Supplementary Data . Silver Stream Agreement Through a series of contracts, Aquila executed a silver stream agreement with OBL to purchase 85% of the silver produced and sold at the Back Forty Project. A total of $17.2 million has been advanced under the agreement as at December 31, 2022. There are no future deposits remaining under the agreement. The initial term of the agreement is for 40 years, automatically renewable for successive ten-year periods. The agreement is subject to certain operating and financial covenants, which are in good standing as of December 31, 2022. Per the terms of the silver stream agreement, OBL will purchase 85% of the silver produced from the Back Forty Project at a fixed price of $4 per ounce of silver. Where the market price of silver is greater than $4 per ounce, the difference realized from the sale of the silver will be applied against the deposit received from Osisko. The $17.2 million received from OBL through December 31, 2022 is shown as a long-term liability on the Consolidated Balance Sheet and includes an implied interest rate. (See Note 12—Commitments and Contingencies Item 8—Financial Statements and Supplementary Data . |
Reclamation and Remediation
Reclamation and Remediation | 12 Months Ended |
Dec. 31, 2022 | |
Reclamation and Remediation | |
Reclamation and Remediation | 11. Reclamation and Remediation The following table presents the changes in the Company’s reclamation and remediation obligations for the years ended December 31, 2022 and 2021: 2022 2021 (in thousands) Reclamation liabilities – balance at beginning of period $ 1,833 $ 1,890 Foreign currency exchange loss (gain) 116 (57) Reclamation liabilities – balance at end of period 1,949 1,833 Asset retirement obligation – balance at beginning of period 1,279 1,208 Changes in estimate 6,384 - Accretion 668 109 Foreign currency exchange loss (gain) 86 (38) Asset retirement obligation – balance at end of period 8,417 1,279 Total period end balance $ 10,366 $ 3,112 The Company’s undiscounted reclamation liabilities of $1.9 million and $1.8 million as of December 31, 2022 and 2021, respectively, are related to DDGM in Mexico. These represent reclamation liabilities that were expensed through 2013 before proven and probable Mineral 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, and mine development. In 2022, the Company updated its closure plan study, which resulted in a $6.4 million increase in the estimated liability. This increase is a result of formalizing a tailings storage facility closure plan, the addition of the dry stack facility and the filtration plant, and the increase of inflation in Mexico. 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 were discounted using a credit adjusted risk-free rate of 8%. As of December 31, 2022, and 2021, the Company’s asset retirement obligation related to the Don David Gold Mine in Mexico was $8.4 million and $1.3 million, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies | |
Commitments and Contingencies | 12. Commitments and Contingencies As of December 31, 2022 and 2021, the Company had equipment purchase commitments aggregating approximately $1.2 million and $0.4 million, respectively. Contingent Consideration With the Aquila acquisition, the Company assumed contingent consideration. On December 30, 2013, Aquila’s shareholders approved the acquisition of 100% of the shares of HudBay Michigan Inc. (“HMI”), a subsidiary of HudBay Minerals Inc. (“HudBay”), effectively giving Aquila 100% ownership in the Back Forty Project (the “HMI Acquisition”). Pursuant to the HMI Acquisition, HudBay’s 51% interest in the Back Forty Project was acquired in consideration for the issuance of common shares of Aquila, future milestone payments tied to the development of the Back Forty Project and a 1% net smelter return royalty on production from certain land parcels in the project. The issuance of shares and 1% net smelter obligations were settled before the Company acquired Aquila. The contingent consideration is composed of the following: The value of future installments is based on C$9 million tied to the development of the Back Forty project as follows: a. C $3 million payable on completion of any form of financing for purposes including the commencement of construction of Back Forty, up to 50% of the C $3 million can be paid, at the Company’s option in Gold Resource Corporation shares with the balance payable in cash (if as of November 2023 this milestone has not been achieved, HMI has the right to repurchase a 51% ownership in the Back Forty Project); b. C $2 million payable in cash 90 days after the commencement of commercial production; c. C $2 million payable in cash 270 days after the commencement of commercial production, and; d. C $2 million payable in cash 450 days after the commencement of commercial production. The total value of the contingent consideration at December 31, 2022 was $4.4 million. It is more likely than not that management will pay C$3 million ($2.2 million) of the liability in 2023 in order to prevent the repurchase of 51% ownership by HMI. Therefore, this portion was moved to current liability, with $2.2 million remaining in long-term liability. The contingent consideration is adjusted for the time value of money and the likelihood of the milestone payments. Any future changes in the value of the contingent consideration will be recognized in the Consolidated Statements of Operations. Other Contingencies The Company has certain other contingencies resulting from litigation, claims, and other commitments and is subject to a variety of environmental and safety laws and regulations incident 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 flow. With the acquisition of Aquila Resources Inc. on December 10, 2021, the Company assumed substantial liabilities that relate to the gold and silver stream agreements with Osisko Bermuda Limited. Under the agreements, Osisko deposited a total of $37.2 million upfront in exchange for a portion of the future gold and silver production from the Back Forty Project. The stream agreements contain customary provisions regarding default and security. In the event that our subsidiary defaults under the stream agreements, including failing to achieve commercial production at a future date, it may be required to repay the deposit plus accumulated interest at a rate agreed with Osisko. If it fails to do so, Osisko may be entitled to enforce its remedies as a secured party and take possession of the assets that comprise the Back Forty Project. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Shareholders' Equity | |
Shareholders' Equity | 13. Shareholders’ Equity In the year ended December 31, 2022, the Company declared and paid dividends of $3.5 million, or $0.04 per share. The Company declared dividends of $3.1 million and paid dividends of $3.4 million, or $0.0433 per share for the year ended December 31, 2021. On February 13, 2023, the Company announced the suspension of future quarterly dividends to protect our balance sheet and to focus capital resources on exploration and growth opportunities. 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 effect until the earlier of (i) June 3, 2023 or (ii) the date that the ATM Agreement is terminated in accordance with its terms No shares of the Company’s common stock were sold through the ATM Agreement during the years ended December 31, 2022 and 2021. During the year ended December 31, 2021, the Company issued 13,714,630 shares of common stock in connection with the Aquila acquisition at a price of $1.79 per share in exchange for 100% of Aquila’s common shares. |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2022 | |
Derivatives | |
Derivatives | 14. Derivatives Embedded Derivatives Concentrate Sales Concentrate sales contracts contain embedded derivatives due to the provisional pricing terms for shipments pending final settlement. At the end of each reporting period, the Company records an adjustment to accounts receivable and revenue to reflect the mark-to-market adjustments for outstanding provisional invoices based on forward metal prices. Please see Note 20—Fair Value Measurement Item 8—Financial Statements and Supplementary Data The following table summarizes the Company’s unsettled sales contracts at December 31, 2022, with the quantities of metals under contract subject to final pricing occurring through February 2023: Gold Silver Copper Lead Zinc Total (ounces) (ounces) (tonnes) (tonnes) (tonnes) Under contract 4,118 279,537 231 1,386 3,268 Average forward price (per ounce or tonne) $ 1,752 $ 21.45 $ 8,294 $ 2,018 $ 3,001 Unsettled sales contracts value (in thousands) $ 7,215 $ 5,996 $ 1,916 $ 2,797 $ 9,807 $ 27,731 Other Derivatives Zinc zero cost collar 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 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. Effective May 18, 2021, GRC entered into Trading Agreement with Auramet International LLC that governs nonexchange traded, over-the-counter, spot, forward, and option transactions on both a deliverable and non-deliverable basis involving various metals and currencies, and these contracts are not designated as hedging instruments. In 2022, the Company had a realized loss of $2.0 million and an unrealized gain of $1.8 million related to the program, compared to a realized loss of $1.2 million and an unrealized loss of $1.8 million in 2021. As of December 31, 2022, the current hedge program concluded, but the Company may utilize similar programs in the future to manage near-term exposure to cash flow variability from metal prices. Derivatives are carried at fair value and on a net basis as 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. For the full year 2022, the LME average zinc price of $3,516 per tonne exceeded the average call option ceiling of $3,288 per tonne, resulting in a realized loss of $2.0 million. 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. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2022 | |
Employee Benefits | |
Employee Benefits | 15. Employee Benefits Effective October 2012, the Company adopted a profit sharing plan (the “Plan”) which covers all U.S. employees. The Plan meets the requirements of a qualified retirement plan pursuant to the provisions of Section 401(k) of the Internal Revenue Code. The Plan also provides eligible employees the opportunity to make tax deferred contributions to a retirement trust account up to 50% of their qualified wages, subject to the IRS annual maximums. On April 23, 2021, a decree that reforms labor outsourcing in Mexico was published in the Federation’s Official Gazette. This decree amended the outsourcing provisions, whereby operating companies can no longer 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. Please see Note 9—Accrued Expenses and Other Liabilities Item 8—Financial Statements and Supplementary Data |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Stock-Based Compensation | |
Stock-Based Compensation | 16. Stock-Based Compensation The Company’s compensation program comprises three main elements: base salary, an annual short-term incentive plan (“STIP”) cash award, and long-term equity-based incentive compensation (“LTIP”) in the form of PSUs, RSUs, stock options, and DSUs. 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, RSUs, stock grants, stock units, performance shares, PSUs, 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. The Company’s STIP provides for annual cash payable upon achievement of specified performance metrics for its management team. As of December 31, 2022, we accrued $1.0 million payable in cash related to the STIP program. As of December 31, 2021, we accrued $0.7 million related to the program Stock-Based Compensation Expense Stock-based compensation expense for stock options, RSUs, PSUs, and DSUs is as follows: For the year ended December 31, 2022 2021 (in thousands) Stock options $ 646 $ 549 Restricted stock units 631 120 Performance stock units 332 - Deferred stock units 346 206 Total $ 1,955 $ 875 The estimated unrecognized stock-based compensation expense from unvested options and RSUs, as of December 31, 2022, was approximately $0.5 million and $0.9 million, respectively, and is expected to be recognized over the remaining vesting periods of up to three years. As DSUs are vested immediately at grant, the full amount of fair value is recognized as expense at the time of grant. In addition, a mark-to-market adjustment due to fluctuation of share price is recognized at the end of each period related to the DSUs. The fair value of the PSUs is recognized over their vesting period of three years, and similarly to the DSUs, a mark-to-market adjustment due to fluctuation of the share price, as well as due to changes in the performance, is recognized at the end of each period related to the proportionate number of units based on passage of time. Stock Options A summary of stock option activity under the Incentive Plan for the years ended December 31, 2022 and 2021 is presented below: Shares Weighted Average Exercise Price (per share) Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (thousands) Outstanding as of December 31, 2020 4,173,168 $ 6.83 3.58 $ 1,324 Granted 600,000 3.22 - Exercised (253,335) 1.31 - Expired (2,035,966) 9.14 - Forfeited (29,167) 5.89 - Outstanding as of December 31, 2021 2,454,700 $ 4.62 4.58 $ 109 Granted 320,816 2.41 - Exercised (355,000) 1.31 - Expired (945,200) 7.78 - Forfeited - - Outstanding as of December 31, 2022 1,475,316 $ 2.90 7.38 $ 18 Vested and exercisable as of December 31, 2022 894,769 $ 2.85 6.70 $ 18 During the years ended December 31, 2022 and 2021, stock options of 320,816 and 600,000, respectively, were granted. The weighted-average fair value of options per share granted during the years ended December 31, 2022 and 2021 was $1.06 and $1.65, respectively. The total intrinsic value of options exercised during the years ended December 31, 2022 and 2021, was $0.1 million and $0.1 million, respectively. The total fair value of options vested during the years ended December 31, 2022 and 2021 was $1.0 million and $0.3 million, respectively. Stock options of 355,000 were exercised during the year ended December 31, 2022. These exercises were settled in cash. 253,335 options were exercised during the year ended December 31, 2021, at a weighted average exercise price of $1.31 per share. For these exercises, 237,719 shares of the Company’s common stock were issued. For the remaining 15,616 options, no common shares were issued because of cashless exercise The following table summarizes information about stock options outstanding at December 31, 2022: Outstanding Exercisable Range of Exercise Prices Number of Options Weighted Average Remaining Contractual Term (in years) Weighted Average Exercise Price (per share) Number of Options Weighted Average Exercise Price (per share) $0.00 - $2.50 540,816 7.51 $ 2.19 326,937 $ 2.05 $2.51 -$5.00 898,000 7.54 $ 3.20 531,332 $ 3.11 $5.01 - $7.50 36,500 1.57 $ 6.18 36,500 $ 6.18 1,475,316 7.38 $ 2.90 894,769 $ 2.85 The assumptions used to determine the value of stock-based awards under the Black-Scholes method are summarized below: For the year ended December 31, 2022 2021 Risk-free interest rate 2.13 % 0.55 % Dividend yield 1.66 % 0.26 % Expected volatility 56.39 % 64.71 % Expected life in years 5 6 Restricted Stock Units A summary of RSU activity under the Incentive Plan for the years ended December 31, 2022 and 2021 is presented below: Shares Aggregate Intrinsic Value (thousands) Weighted Average Remaining Contractual Term (in years) Nonvested as of December 31, 2020 349,865 $ 1,017 4.87 Granted 2,614 - Vested (75,262) - Forfeited (171,418) - Nonvested as of December 31, 2021 105,799 $ 165 1.07 Granted 611,681 - Vested and redeemed (80,169) - Vested but not redeemed (deferred) (39,298) Forfeited (22,465) - Nonvested as of December 31, 2022 575,548 $ 881 1.04 RSUs of 611,681 and 2,614, respectively, were granted during the years ended December 31, 2022 and 2021. The weighted-average fair value per share of RSUs granted during the years ended December 31, 2022 and 2021 was $1.97 and $2.56, respectively. The grant date fair value of RSUs is determined by the 20-day volume weighted average price of the Company’s common shares at grant date. The total intrinsic value of RSUs vested during the years ended December 31, 2022 and 2021 was $0.3 million and $0.1 million, respectively. Performance Stock Units Starting in 2022, the Company’s Board of Directors approved granting performance share units to the Company’s management team. PSUs cliff vest in three years based on the relative total shareholder return of a predetermined peer group and are expected to be settled in cash. These awards contain a cash settlement feature and are therefore classified as liability and are marked to fair value each reporting period. As of December 31, 2022, the non-current liability balance related to PSUs was $0.3 million. PSUs of 695,041 were granted during the year ended December 31, 2022, with weighted-average fair value of $1.99 per unit. The grant date fair value of PSUs is determined by the 20-day volume weighted average price of the Company’s common shares at grant date. No PSUs were granted before 2022, and no PSUs were vested, redeemed, or forfeited Deferred Stock Units 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 to members of the Company’s Board of Directors. Additionally, members of the Board may elect, at the beginning of each year, that portion of their board fees be paid in DSUs rather than in cash. DSUs are qualifying instruments under the terms of the Company’s 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. DSUs are vested immediately at grant and are redeemable in cash or shares—at the discretion of the Company—at the earlier of 10 years or upon the eligible directors’ termination and expected to be paid in cash. 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. As of December 31, 2022 and 2021, respectively, the Company has $0.6 million and $0.2 million of other non-current liability related to the DSUs, based on the fair value of the Company’s stock price. DSUs of 214,357 and 130,000 were granted to the Board of Directors during the years ended December 31, 2022 and 2021, respectively. Additionally, DSUs of 14,382 and 1,960 were granted to the Board of Directors in lieu of board fees at their request during the years ended December 31, 2022 and 2021, respectively. The weighted-average grant date fair value per share of DSUs granted during the years ended December 31, 2022 and 2021 was $2.93 and $3.21, respectively. The grant date fair value of DSUs is determined by the 20-day volume weighted average price of the Company’s common shares at grant date. No DSUs were granted before 2021, and no DSUs were redeemed or forfeited |
Zinc Zero Cost Collar
Zinc Zero Cost Collar | 12 Months Ended |
Dec. 31, 2022 | |
Zinc Zero Cost Collar | |
Zinc Zero Cost Collar | 17. Zinc Zero Cost Collar During the years ended December 31, 2022 and 2021, the realized and unrealized losses related to the Company’s Zinc Zero Cost Collar are the following: For the year ended December 31, 2022 2021 (in thousands) Realized loss on zinc zero cost collar $ 2,014 $ 1,156 Unrealized (gain) loss on zinc zero cost collar (1) (1,844) 1,844 Total $ 170 $ 3,000 (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. Effective May 18, 2021, GRC entered into Trading Agreement with Auramet International LLC that govern nonexchange traded, over-the-counter, spot, forward and option transactions on both a deliverable and non-deliverable basis involving various metals and currencies. In 2022, the Company had a realized loss of $2.0 million and an unrealized gain of $1.8 million related to the program. In 2021, the Company had a realized loss of $1.2 million and an unrealized loss of $1.8 million related to the program. Please see Note 14—Derivatives Item 8—Financial Statements and Supplementary Data |
Other (Income) Expense, Net
Other (Income) Expense, Net | 12 Months Ended |
Dec. 31, 2022 | |
Other (Income) Expense, Net | |
Other (Income) Expense, Net | 18. Other (Income) Expense, Net During the years ended December 31, 2022 and 2021, other expense, net consisted of the following: For the year ended December 31, 2022 2021 (in thousands) Unrealized currency exchange loss (1) $ 1,286 $ 493 Realized currency exchange loss (gain) 121 (111) Realized and unrealized (gain) loss from gold and silver rounds, net (28) 53 Loss on disposal of fixed assets 330 26 Employee benefit obligation (2) - 947 Interest on streaming liabilities 906 - Severance (3) 688 - Other expense (income) 985 (388) Total $ 4,288 $ 1,020 (1) Gains and losses due to changes in fair value are non-cash in nature until such time that they are realized through cash transactions. (2) In 2022, Employee benefit obligation of $0.1 million is recorded in production cost rather than in other expense, net. In 2021, the initial Employee benefit obligation due to the Mexico Labor Reform was recorded as other expense. (3) This is due to reduction of workforce in DDGM. |
Net Income per Common Share
Net Income per Common Share | 12 Months Ended |
Dec. 31, 2022 | |
Net Income per Common Share | |
Net Income per Common Share | 19. Net Income per Common Share Basic income per common share is calculated based on the weighted average number of shares of common stock outstanding for the period. Diluted income per common share is calculated based on the assumption that stock options outstanding, which have an exercise price less than the average market price of the Company’s common stock during the period, would have been exercised on the later of the beginning of the period or the date granted and that the funds obtained from the exercise were used to purchase common shares at the average market price during the period. All of the Company’s restricted stock units are considered to be dilutive. The effect of the Company’s dilutive securities is calculated using the treasury stock method, and only those instruments that result in a reduction in net income per common share are included in the calculation. Options to purchase 1.5 million shares of common stock at weighted average exercise prices of $2.90 were outstanding as of December 31, 2022 but had no dilutive effect due to the net loss. Options to purchase 2.2 million shares of common stock at weighted average exercise prices of $10.69 were outstanding as of December 31, 2021 but were not included in the computation of diluted weighted average common shares outstanding, as the exercise price of the options exceeded the average price of the Company’s common stock during those periods, and therefore were anti-dilutive. Basic and diluted net income per common share is calculated as follows: For the year ended December 31, 2022 2021 Numerator: Net (loss) income (in thousands) $ (6,321) $ 8,028 Denominator: Basic weighted average shares of common stock outstanding 88,368,250 75,301,253 Dilutive effect of share-based awards - 307,374 Diluted weighted average common shares outstanding 88,368,250 75,608,627 Basic and diluted net (loss) income per common share $ (0.07) $ 0.11 |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Measurement | |
Fair Value Measurement | 20. 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 and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. These assets and liabilities are remeasured for each reporting period. The following tables set forth certain of the Company’s assets and liabilities measured at fair value by level within the fair value hierarchy as of December 31, 2022 and 2021: As of As of December 31, December 31, Input Hierarchy Level 2022 2021 (in thousands) Cash and cash equivalents $ 23,675 $ 33,712 Level 1 Accounts receivable, net $ 5,085 $ 8,672 Level 2 Investment in equity securities-Maritime $ 1,559 $ - Level 1 Investment in equity securities-Green Light Metals $ 3,611 $ - Level 3 Derivative liability - zinc zero cost collar $ - $ (1,844) Level 2 The following methods and assumptions were used to estimate the fair value of each class of financial instrument: Cash and cash equivalents Accounts receivable, net and accounted for as a derivative. At the end of each reporting period, the Company records an adjustment to sales to reflect the mark-to-market of outstanding provisional invoices based on the forward price curve. Because these provisionally priced sales have not yet settled as of the reporting date, the mark-to-market adjustment related to these invoices is included in accounts receivable as of each reporting date. At December 31, 2022 and 2021, the Company had an unrealized gain of $0.6 million and $0.2 million, respectively, included in its accounts receivable on the accompanying Consolidated Balance Sheets related to mark-to-market adjustments. Please see Note 14—Derivatives Item 8—Financial Statements and Supplementary Data Investment in equity securities—Maritime: Investment in equity securities—Green Light Metals: Derivative liability - zinc zero cost collar: Gains and losses related to changes in the fair value of these financial instruments were included in the Company’s Consolidated Statements of Operations as shown in the following: For the year ended December 31, Statements of Operations Classification 2022 2021 Note Realized and unrealized derivative (loss) gain, net 14 $ (363) $ 1,002 Sales, net Realized loss on zinc zero cost collar 17 $ (2,014) $ (1,156) Realized and unrealized loss on zinc zero cost collar Unrealized gain (loss) on zinc zero cost collar 17 $ 1,844 $ (1,844) Realized and unrealized loss on zinc zero cost collar Realized/Unrealized Derivatives, net The following tables summarize the Company’s realized/unrealized derivatives, net (in thousands) Gold Silver Copper Lead Zinc Total For the year ended December 31, 2022 Realized loss $ (79) $ - $ (127) $ (150) $ (364) $ (720) Unrealized gain (loss) 136 433 7 153 (372) 357 Total realized/unrealized derivatives, net $ 57 $ 433 $ (120) $ 3 $ (736) $ (363) Gold Silver Copper Lead Zinc Total For the year ended December 31, 2021 Realized (loss) gain $ (47) $ (44) $ 73 $ 163 $ 632 $ 777 Unrealized (loss) gain - (159) 6 (2) 380 225 Total realized/unrealized derivatives, net $ (47) $ (203) $ 79 $ 161 $ 1,012 $ 1,002 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 | 12 Months Ended |
Dec. 31, 2022 | |
Supplementary Cash Flow Information | |
Supplementary Cash Flow Information | 21. Supplementary Cash Flow Information During the years ended December 31, 2022 and 2021, other operating adjustments and write-downs within the net cash provided by operations on the Consolidated Statements of Cash Flows consisted of the following: For the year ended December 31, 2022 2021 (in thousands) Unrealized (gain) loss on gold and silver rounds $ (63) $ 53 Unrealized foreign currency exchange loss 1,286 493 Loss on disposition of fixed assets 408 37 Increase (decrease) in reserve for inventory (264) 175 Unrealized (gain) loss on zinc zero cost collar (1,844) 1,844 Other 521 105 Total other operating adjustments $ 44 $ 2,707 |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting | |
Segment Reporting | 22. Segment Reporting As of December 31, 2022, the Company has organized its operations into three geographic regions. The geographic regions include Oaxaca, Mexico, Michigan, U.S.A. and Corporate and Other. Oaxaca, Mexico represents the Company’s only production stage property. Michigan, U.S.A. is an advanced exploration stage property. Intercompany revenue and expense amounts have been eliminated within each segment in order to report on the basis that management uses internally for evaluating segment performance. The Company’s business activities that are not considered production stage or advanced exploration stage properties are included in Corporate and Other. The following table shows selected information from the Consolidated Balance Sheets relating to the Company’s segments (in thousands): Oaxaca, Mexico Michigan, USA Corporate and Other Consolidated As of December 31, 2022 Total current assets $ 38,032 $ 272 $ 7,795 $ 46,099 Total non-current assets 63,342 92,927 1,803 158,072 Total assets $ 101,374 $ 93,199 $ 9,598 $ 204,171 Total current liabilities $ 20,035 $ 3,352 $ 1,295 $ 24,682 Total non-current liabilities 5,533 60,648 1,544 67,725 Total shareholders' equity 75,806 29,199 6,759 111,764 Total liabilities and shareholders' equity $ 101,374 $ 93,199 $ 9,598 $ 204,171 As of December 31, 2021 Total current assets $ 50,057 $ 5,528 $ 3,330 $ 58,915 Total non-current assets 66,756 90,018 73 156,847 Total assets $ 116,813 $ 95,546 $ 3,403 $ 215,762 Total current liabilities $ 25,833 $ 2,459 $ 1,367 $ 29,659 Total non-current liabilities 1,436 63,438 479 65,353 Total shareholders' equity 89,544 29,649 1,557 120,750 Total liabilities and shareholders' equity $ 116,813 $ 95,546 $ 3,403 $ 215,762 The following table shows selected information from the Consolidated Statements of Operations relating to the Company’s segments (in thousands): Oaxaca, Mexico Michigan, USA (1) Corporate and Other Consolidated For the year ended December 31, 2022 Sales, net $ 138,724 $ - $ - $ 138,724 Total mine cost of sales, including depreciation 108,863 75 38 108,976 Exploration expense 4,244 8,805 - 13,049 Total other costs and expenses, including G&A 2,741 1,415 10,305 14,461 Provision for income taxes 8,061 (1,123) 1,621 8,559 Net income (loss) $ 14,815 $ (9,172) $ (11,964) $ (6,321) For the year ended December 31, 2021 Sales, net $ 125,196 $ - $ - $ 125,196 Total mine cost of sales, including depreciation 88,449 - - 88,449 Exploration expense 4,813 55 18 4,886 Total other costs and expenses, including G&A 3,995 1,167 9,056 14,218 Provision for income taxes 8,518 305 792 9,615 Net income (loss) $ 19,421 $ (1,527) $ (9,866) $ 8,028 (1) Michigan, USA was acquired on December 10, 2021. |
Aquila Acquisition
Aquila Acquisition | 12 Months Ended |
Dec. 31, 2022 | |
Aquila Acquisition | |
Aquila Acquisition | 23. Aquila Acquisition On December 10, 2021, the Company completed the Definitive Arrangement Agreement, pursuant to which GRC acquired all of the issued and outstanding common shares of Aquila Resources Inc. (the "Acquisition"). Under the terms of the Acquisition, each holder of Aquila common shares (a “Shareholder”) received 0.0399 of GRC common share per Aquila share. Aquila had 343,725,063 issued and outstanding The Company considered the appropriate accounting treatment with regards to ASC 805 Business Combinations and determined it was appropriate to account for this transaction as an asset acquisition. This determination was made as the Back Forty Project, as a single asset, made up more than 90% of the acquired assets, and there were no significant outputs or substantive processes. The following table summarizes the allocation of the purchase price to the assets acquired and liabilities assumed as of the date of acquisition (in thousands): AQUILA ACQUISITION As of December 10, 2021 Consideration: Cash Consideration, including transaction costs $ 4,571 Stock Consideration (13,714,630 shares at $1.79 per share) 24,549 Total Consideration: $ 29,120 Value of net assets acquired: Assets: Cash and cash equivalents $ 2,208 Accounts receivable 142 Promissory Note 3,885 Prepaid expenses 29 Security deposits 27 Property, plant and mine development 89,579 Total Assets $ 95,870 Liabilities: Accounts payable and accrued liabilities $ 3,314 Leases payable - current 127 Exploration reclamation liability 611 Gold and silver stream agreements 42,421 Contingent consideration 4,603 Leases payable - long term 205 Deferred tax liability 15,469 Total Liabilities $ 66,750 Total net assets: $ 29,120 The deferred tax liability assumed that an Internal Revenue Code Section 338(g) election (“338(g) election”) would not be made to step up the tax basis of the Back Forty Project to the book basis. After further evaluation, in September 2022, management did not make the 338(g) election. |
Nature of Operations and Summ_2
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Nature of Operations and Summary of Significant Accounting Policies | |
Nature of Operations | Nature of Operations Gold Resource Corporation (the “Company”) was organized under the laws of the State of Colorado on August 24, 1998. The Company is a producer of doré containing gold and silver and metal concentrates that contain gold, silver, copper, lead, and zinc in Oaxaca, Mexico. The Company also has 100% interest in the Back Forty Project, an advanced Exploration Stage Property, located in Menominee County, Michigan, USA. |
Acquisition | Acquisition On December 10, 2021, the Company completed the acquisition of all the issued and outstanding common shares of Aquila Resources Inc. Aquila’s principal asset is its 100% interest in the Back Forty Project located in Menominee County, Michigan, USA. The Back Forty Project has a polymetallic (gold, silver, copper, silver, lead, and zinc) Volcanogenic Massive Sulfide deposit. The Back Forty Project controls surface and mineral rights through ownership, leases with the State of Michigan, and royalties with private parties. The Company considered the appropriate accounting treatment with regards to the Financial Accounting Standards Board’s Accounting Standards Codification (“ASC”) 805 Business Combinations and determined it was appropriate to account for this transaction as an asset acquisition. Please see Note 23—Aquila Acquisition Item 8—Financial Statements and Supplementary Data Asset Acquisition The Company considers the appropriate accounting treatment with regards to the Financial Accounting Standards Board’s ASC 805 Business Combinations for all material merger and acquisition transactions as they occur. The facts and circumstances of each transaction are evaluated to determine the appropriate accounting. Please see Note 23—Aquila Acquisition Item 8—Financial Statements and Supplementary Data |
Basis of Presentation | Basis of Presentation The consolidated financial statements included herein are expressed in United States dollars and conform to accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include the accounts of the Company, its Mexican subsidiary, Don David Gold Mexico S.A. de C.V., and Aquila and its subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. |
Segment Reporting | Segment Reporting The Company has organized its operations into three geographic regions. The geographic regions include Oaxaca, Mexico, Michigan, U.S.A., and Corporate and Other. Oaxaca, Mexico represents the Company’s only production stage property. Michigan, U.S.A. is an advanced exploration stage property. The Company’s business activities that are not considered production stage or advanced exploration stage properties are included in Corporate and Other . |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. The more significant areas requiring the use of management estimates and assumptions relate to Mineral Resources and Mineral Reserves that are the basis for future cash flow estimates utilized in impairment calculations and units-of-production depreciation calculations; asset and liability valuation related to acquisitions; accounting for asset acquisitions; future metal prices, especially as it relates to zinc zero cost collar; environmental remediation, reclamation and closure obligations; estimates of recoverable gold and other minerals in stockpiles; write-downs of inventory, stockpiles to net realizable value; valuation allowances for deferred tax assets and liabilities; valuation of contingent considerations and gold and silver stream agreements, provisional amounts related to income tax effects of newly enacted tax laws; and stock-based compensation. Management routinely makes judgments and estimates about the effects of matters that are inherently uncertain and bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances. Actual results could differ from these estimates. |
Reclassifications | Reclassifications Certain amounts presented in prior periods have been reclassified to conform to the current period presentation. Starting in 2022, the Company stopped presenting Gold and Silver Rounds as a separate line item in the Consolidated Balance Sheets. Gold and Silver Rounds are now included within prepaid expenses and other current assets. In 2021, accrued expenses and other current liabilities included the liability for the zinc zero cost collar, which is presented in a separate line on the Consolidated Balance Sheets in 2022. In 2021, exploration expenses included both the Don David Gold Mine (“DDGM”) exploration expenses and the Back Forty Project expenses. In 2022, these are presented on separate lines in the Consolidated Statements of Operations. The reclassifications had no effect on the Company’s results of operations or financial condition. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of all cash balances and highly liquid investments with a remaining maturity of three months or less when purchased. Cash held in Mexican Pesos or Canadian Dollars is converted to U.S. Dollars at the closing exchange rate at year end. |
Accounts Receivable, net | Accounts Receivable, net Accounts receivable consists of trade receivables, which are recorded net of allowance for doubtful accounts from the sale of doré and metals concentrates, as well as net of an embedded derivative based on mark-to-market adjustments for outstanding provisional invoices based on forward metal prices. Please see Note 14—Derivatives Note 20—Fair Value Measurement Item 8—Financial Statements and Supplementary Data |
Inventories | Inventories The major inventory categories are set forth below: Stockpile Inventories : Concentrate Inventories Doré Inventory: Materials and Supplies Inventories Write-downs of inventory are charged to production costs on the Consolidated Statements of Operations. |
Promissory Note | Promissory Note A promissory note was acquired in the Aquila Transaction. In October 2021, Aquila sold its Wisconsin assets to Green Light Metals in return for a C$4.9 million ($3.9 million) promissory note. Upon maturity on December 28, 2022, the Company received 12,250,000 private shares of Green Light Metals, which settled the promissory note. The shares received represent 28.5% ownership in Green Light Metals. As of December 31, 2022, the balance of the promissory note receivable was zero. Management chose to account for this investment in Green Light Metals using the fair value option. Please see Note 3—Promissory Note Note 8—Other Non-current Assets Item 8—Financial Statements and Supplementary Data |
Property, Plant and Mine Development | Property, Plant, and Mine Development Land and Mineral Interests : Mine Development : Drilling costs incurred during the production phase for operational ore control are recorded as mine development and amortized using UOP. All other drilling and related costs are expensed as incurred. Mine development costs are amortized using the UOP method based on estimated recoverable ounces in Mineral Reserves. Property and Equipment Construction in Progress Depreciation and Amortization Range of Lives Asset retirement costs UOP Furniture, computer and office equipment 3 to 10 years Light vehicles and other mobile equipment 4 years Machinery and equipment UOP to 8 years Mill facilities and related infrastructure UOP Mine development and mineral interests UOP Buildings and infrastructure UOP to 4 years |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company evaluates its long-lived assets for impairment when events or changes in circumstances indicate that the related carrying amounts may not be recoverable. Asset impairment is considered to exist if the total estimated future cash flows on an undiscounted basis are less than the carrying amount of the asset. If an impairment is indicated, a determination is made whether an impairment has occurred. Impairment losses are measured either 1) as the excess of carrying value over the total discounted estimated future cash flows, or 2) as the excess of carrying value over the fair value, using the expected fair value technique in the absence of an observable market price. Losses are charged to expense on the Company’s Consolidated Statements of Operations. In estimating future cash flows, assets are grouped at the lowest level for which there are identifiable cash flows that are largely independent of future cash flows from other asset groups. Existing Mineral Resources and Mineral Reserves are included when estimating the fair value in determining whether the assets are impaired. The Company’s estimates of future cash flows are based on numerous assumptions, including expected gold and other commodity prices, production levels and costs, processing recoveries, capital requirements, and estimated salvage values. It is possible that actual future cash flows will be significantly different from the estimates, as actual future quantities of recoverable minerals, gold and other commodity prices, production levels and costs, and capital requirements are each subject to significant risks and uncertainties. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The recorded amounts of cash and cash equivalents, receivables from provisional concentrate sales, and accounts payable approximate fair value because of the short maturity of those instruments. The recorded amounts for the zinc zero cost collar are based on the London Metal Exchange forward underlying price over a period from the trade date to the payment date. The recorded amount for the equity investment in the common shares of Maritime is based on the closing share price of MAE.V on TSX-V. The company elected the fair value measurement option as the measurement basis for the equity investment in the common shares of Green Light Metals. |
Treasury Stock | Treasury Stock Treasury stock represents shares of the Company’s common stock which have been repurchased on the open market at the prevailing market price at the time of purchase and have not been canceled. Treasury stock is shown at cost as a separate component of equity. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue from doré and concentrate sales. Doré sales Concentrate sales |
Production Costs | Production Costs Production costs include labor and benefits, royalties, concentrate and doré shipping costs, mining costs, fuel and lubricants, legal and professional fees related to mine operations, stock-based compensation attributable to mine workers, materials and supplies, repairs and maintenance, explosives, site support, housing and food, insurance, reagents, travel, medical services, security equipment, office rent, tools, and other costs that support mining operations. |
Exploration Costs | Exploration Costs Exploration costs are charged to expense as incurred. Costs to identify new Mineral Resources and to evaluate potential Mineral Resources are considered exploration costs. Exploration activities conducted within the defined Mineral Resources are capitalized. |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for stock-based compensation under the fair value recognition and measurement provisions of U.S. GAAP. Those provisions require all stock-based payments, including grants of stock options, restricted stock units (“RSUs”), performance share units (“PSUs”), and deferred share units (“DSUs”) to be measured based on the grant date fair value of the awards, with the resulting expense generally recognized on a straight-line basis in the Consolidated Statements of Operations over the period during which services are performed in exchange for the award. The majority of the awards are earned over a service period of three years. DSUs are earned immediately at grant and are expected to be paid out in cash in the future. PSUs and DSUs are considered liability instruments and marked-to-market each reporting period. The Company's estimates may be impacted by certain variables including, but not limited to, stock price volatility, employee stock option exercise behaviors, additional stock option grants, and estimates of forfeitures. |
Reclamation and Remediation Costs | Reclamation and Remediation Costs Reclamation costs are allocated to expense over the life of the related assets and are periodically adjusted to reflect changes in the estimated present value resulting from the passage of time and revisions to the estimates of either the timing or amount of the reclamation and remediation costs. Reclamation obligations are based in part on when the spending for an existing environmental disturbance will occur. The Company reviews the reclamation obligation at least on an annual basis. In 2014, the Company became a production stage company and therefore, started capitalizing asset retirement costs along with the asset retirement obligation. Please see Note 11—Reclamation and Remediation Item 8—Financial Statements and Supplementary Data Accounting for reclamation and remediation obligations requires management to make estimates unique to each mining operation of the future costs expected to be incurred to complete the reclamation and remediation work required to comply with existing laws and regulations. Actual costs incurred in future periods could differ from the amounts estimated. Additionally, future changes to environmental laws and regulations could increase the extent of reclamation and remediation work required. Any such increases in future costs could materially impact the amounts charged to operations for reclamation and remediation. |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Accumulated other comprehensive loss is presented in the consolidated statements of changes in shareholders’ equity. Accumulated other comprehensive loss is composed of foreign currency translation adjustment effects related to the historical adjustment when the functional currency was the Mexican peso for our Mexico subsidiary. This loss will remain on our Consolidated Balance Sheets until the sale or dissolution of our Mexico subsidiary. |
Income and Mining Royalty Taxes | Income and Mining Royalty Taxes Income and Mining Royalty Taxes are computed using the asset and liability method. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial and tax reporting purposes and the effect of net operating loss and foreign tax credit carryforwards using enacted tax rates in effect in the years in which the differences are expected to reverse. Deferred tax assets are evaluated to determine if it is more likely than not that they will be realized. Please see Note 5—Income Taxes Item 8—Financial Statements and Supplementary Data |
Net Income Per Share | Net Income Per Share Basic earnings per share is calculated based on the weighted average number of common shares outstanding for the period. Diluted income per share reflects the dilution that could occur if potentially dilutive securities, as determined using the treasury stock method, are converted into common stock. Potentially dilutive securities are excluded from the calculation when their inclusion would be anti-dilutive, such as periods when a net loss is reported or when the exercise price of the instrument exceeds the average fair market value of the underlying common stock. |
Foreign Currency | Foreign Currency The functional currency for all of the Company’s subsidiaries is the United States dollar (“U.S. dollar”). |
Concentration of Credit Risk | Concentration of Credit Risk The Company has considered and assessed the credit risk resulting from its concentrate sales and doré sales arrangements with its customers. In the event that the Company’s relationships with its customers are interrupted for any reason, the Company believes that it would be able to locate another entity to purchase its metals concentrates and doré bars; however, any interruption could temporarily disrupt the Company’s sale of its products and materially adversely affect operating results. The Company’s Arista and Alta Gracia mines, which are located in the State of Oaxaca, Mexico, accounted for 100% of the Company’s total net sales from operations for the years ended December 31, 2022 and 2021. Some of the Company’s operating cash balances are maintained in accounts that currently exceed federally insured limits. The Company believes that the financial strength of the depositing institutions mitigates the underlying risk of loss. To date, these concentrations of credit risk have not had a significant impact on the Company’s financial position or results of operations. |
Streaming liabilities | Streaming Liabilities The Company presents the gold and silver streaming liabilities initially at fair value and subsequently accreted using a discount rate and risk factor probabilities. The discount rate is the Company’s estimated borrowing rate, and the probabilities consider the completion of the feasibility study, obtaining necessary permits, and the completion of the mine facilities. The adjustment in the value is the accretion of interest, which is booked as other expense. |
Nature of Operations and Summ_3
Nature of Operations and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Nature of Operations and Summary of Significant Accounting Policies | |
Summary of estimated economic lives of of depreciable assets | Range of Lives Asset retirement costs UOP Furniture, computer and office equipment 3 to 10 years Light vehicles and other mobile equipment 4 years Machinery and equipment UOP to 8 years Mill facilities and related infrastructure UOP Mine development and mineral interests UOP Buildings and infrastructure UOP to 4 years |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue | |
Summary of revenue from the sale of dore and concentrate | For the year ended December 31, 2022 2021 (in thousands) Doré sales, net Gold $ 7,997 $ 8,120 Silver 230 678 Less: Refining charges (59) (136) Total doré sales, net 8,168 8,662 Concentrate sales Gold 46,322 32,593 Silver 22,527 26,095 Copper 11,987 13,495 Lead 11,626 13,442 Zinc 50,470 41,256 Less: Treatment and refining charges (12,013) (11,349) Total concentrate sales, net 130,919 115,532 Realized (loss) gain - embedded derivative, net (1) (720) 777 Unrealized gain - embedded derivative, net 357 225 Total sales, net $ 138,724 $ 125,196 (1) Copper, lead, and zinc are co-products. In the realized (loss) gain - embedded derivative, net, there are $0.7 million loss and $0.8 million gain, respectively, related to these co-products for the twelve months ended December 31, 2022 and 2021. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventories | |
Summary of Inventories | As of As of December 31, December 31, 2022 2021 (in thousands) Stockpiles - underground mine $ 597 $ - Concentrates 3,271 2,048 Doré, net 653 452 Subtotal - product inventories 4,521 2,500 Materials and supplies (1) 8,979 7,861 Total $ 13,500 $ 10,361 (1) Net of reserve for obsolescence of $0.1 million and $0.4 million as of December 31, 2022 and 2021, respectively. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Taxes | |
Components of net income before income taxes and extraordinary item | Years Ended December 31, 2022 2021 (in thousands) U.S. Operations $ (18,317) $ (6,369) Foreign Operations (1) 20,555 24,012 Total income before income taxes $ 2,238 $ 17,643 (1) Foreign operations are predominantly in Mexico, as activities in Canada are minimal. |
Calculation of Income Taxes Provision | Years ended December 31, 2022 2021 (in thousands) Current taxes: State $ (254) $ 305 Foreign 12,358 11,426 Total current taxes $ 12,104 $ 11,731 Deferred taxes: Federal $ (895) $ - State 25 - Foreign (2,675) (2,116) Total deferred taxes $ (3,545) $ (2,116) Total income tax provision $ 8,559 $ 9,615 |
Differences between provision for income taxes and income tax determined | For the year ended December 31, 2022 2021 (in thousands) Tax at statutory rates $ 470 $ 3,705 Foreign rate differential 1,867 2,095 Changes in valuation allowance (5,115) (975) Tax losses subject to limitation 8,306 - Mexico mining tax 2,168 1,590 Foreign exchange 311 535 Stock option expiration 519 2,471 Mexico withholding tax 1,328 679 Deduction for inflation in Mexico (1,083) (981) U.S. state income tax (786) 514 Other 574 (18) Tax provision $ 8,559 $ 9,615 |
Tax Effects of Temporary Differences That Give Rise to Significant Portions of Deferred Tax Assets | As of December 31, 2022 2021 (in thousands) Non-current deferred tax assets: Tax loss carryforward $ 25,626 $ 29,496 Property, plant, and mine development 1,429 572 Share-based compensation 511 1,068 Foreign tax credits 4,089 4,089 Inventory 45 142 Foreign Mining Tax 1,106 793 Accrued Expenses 5,606 3,363 Gold and silver stream agreements liability 2,144 1,681 Employee profit sharing obligation 663 566 Zinc Derivatives - 608 Other 1,344 472 Total deferred tax assets $ 42,563 $ 42,850 Valuation allowance (31,818) (36,933) Deferred tax assets after valuation allowance $ 10,745 $ 5,917 Deferred tax liability – Property, plant and mine development (17,724) (16,722) Deferred tax liability – Other (2,245) (2,321) Total deferred tax liabilities $ (19,969) $ (19,043) Net deferred tax liability $ (9,224) $ (13,126) |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Prepaid Expenses And Other Current Assets | |
Schedule of prepaid and other assets | As of As of December 31, December 31, 2022 2021 (in thousands) Advances to suppliers $ 867 $ 188 Prepaid insurance 1,298 1,222 Prepaid income tax 432 - Other current assets 1,242 875 Total $ 3,839 $ 2,285 |
Property, Plant and Mine Deve_2
Property, Plant and Mine Development, net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Mine Development, net | |
Schedule of property, plant and mine development | As of As of December 31, December 31, 2022 2021 (in thousands) Asset retirement costs $ 7,449 $ 1,065 Construction-in-progress 351 15,854 Furniture and office equipment 1,732 1,685 Land 9,033 9,230 Mineral interest 79,543 79,964 Light vehicles and other mobile equipment 2,327 2,224 Machinery and equipment 41,343 33,213 Mill facilities and infrastructure 35,917 24,973 Mine Development 105,263 92,138 Software and licenses 1,552 1,592 Subtotal (1) 284,510 261,938 Accumulated depreciation and amortization (131,947) (105,167) Total $ 152,563 $ 156,771 (1) Includes capital expenditures in accounts payable and accruals of $1.3 million and $1.7 million at December 31, 2022 and 2021, respectively. |
Other Non-current Assets (Table
Other Non-current Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Non-current Assets | |
Schedule of other non-current assets | As of As of December 31, December 31, 2022 2021 (in thousands) Equity Investment in Maritime $ 1,559 $ - Equity Investment in Green Light Metals 3,611 - Other non-current assets 339 76 Total $ 5,509 $ 76 |
Accrued Expenses and Other Li_2
Accrued Expenses and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accrued Expenses and Other Liabilities | |
Schedule of accrued expenses and other current liabilities | As of As of December 31, December 31, 2022 2021 (in thousands) Accrued royalty payments $ 1,787 $ 1,743 Employee profit sharing obligation 2,206 1,888 Other payables 1,204 1,100 Total accrued expenses and other current liabilities $ 5,197 $ 4,731 Accrued non-current labor obligation $ 1,050 $ 920 Share-based compensation liability 884 206 Other long-term liabilities 556 826 Total other non-current liabilities $ 2,490 $ 1,952 |
Gold and Silver Stream Agreem_2
Gold and Silver Stream Agreements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Gold and Silver Stream Agreements | |
Schedule of liabilities related to the deferred revenues | As of As of December 31, December 31, 2022 2021 (in thousands) Liability related to the Gold Stream Agreement $ 20,881 $ 20,364 Liability related to the Silver Stream Agreement 22,585 22,196 Total liability $ 43,466 $ 42,560 |
Reclamation and Remediation (Ta
Reclamation and Remediation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Reclamation and Remediation | |
Changes in Reclamation and Remediation | 2022 2021 (in thousands) Reclamation liabilities – balance at beginning of period $ 1,833 $ 1,890 Foreign currency exchange loss (gain) 116 (57) Reclamation liabilities – balance at end of period 1,949 1,833 Asset retirement obligation – balance at beginning of period 1,279 1,208 Changes in estimate 6,384 - Accretion 668 109 Foreign currency exchange loss (gain) 86 (38) Asset retirement obligation – balance at end of period 8,417 1,279 Total period end balance $ 10,366 $ 3,112 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivatives | |
Summary of unsettled sales contracts | Gold Silver Copper Lead Zinc Total (ounces) (ounces) (tonnes) (tonnes) (tonnes) Under contract 4,118 279,537 231 1,386 3,268 Average forward price (per ounce or tonne) $ 1,752 $ 21.45 $ 8,294 $ 2,018 $ 3,001 Unsettled sales contracts value (in thousands) $ 7,215 $ 5,996 $ 1,916 $ 2,797 $ 9,807 $ 27,731 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Stock-Based Compensation | |
Stock-based compensation expense | For the year ended December 31, 2022 2021 (in thousands) Stock options $ 646 $ 549 Restricted stock units 631 120 Performance stock units 332 - Deferred stock units 346 206 Total $ 1,955 $ 875 |
Schedule of Share-based Compensation, Stock Options, Activity | Shares Weighted Average Exercise Price (per share) Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (thousands) Outstanding as of December 31, 2020 4,173,168 $ 6.83 3.58 $ 1,324 Granted 600,000 3.22 - Exercised (253,335) 1.31 - Expired (2,035,966) 9.14 - Forfeited (29,167) 5.89 - Outstanding as of December 31, 2021 2,454,700 $ 4.62 4.58 $ 109 Granted 320,816 2.41 - Exercised (355,000) 1.31 - Expired (945,200) 7.78 - Forfeited - - Outstanding as of December 31, 2022 1,475,316 $ 2.90 7.38 $ 18 Vested and exercisable as of December 31, 2022 894,769 $ 2.85 6.70 $ 18 |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range | Outstanding Exercisable Range of Exercise Prices Number of Options Weighted Average Remaining Contractual Term (in years) Weighted Average Exercise Price (per share) Number of Options Weighted Average Exercise Price (per share) $0.00 - $2.50 540,816 7.51 $ 2.19 326,937 $ 2.05 $2.51 -$5.00 898,000 7.54 $ 3.20 531,332 $ 3.11 $5.01 - $7.50 36,500 1.57 $ 6.18 36,500 $ 6.18 1,475,316 7.38 $ 2.90 894,769 $ 2.85 |
Schedule of Assumptions Used to Determine the Value of our Stock-based Awards | For the year ended December 31, 2022 2021 Risk-free interest rate 2.13 % 0.55 % Dividend yield 1.66 % 0.26 % Expected volatility 56.39 % 64.71 % Expected life in years 5 6 |
Schedule of RSU activity under the Incentive Plan | Shares Aggregate Intrinsic Value (thousands) Weighted Average Remaining Contractual Term (in years) Nonvested as of December 31, 2020 349,865 $ 1,017 4.87 Granted 2,614 - Vested (75,262) - Forfeited (171,418) - Nonvested as of December 31, 2021 105,799 $ 165 1.07 Granted 611,681 - Vested and redeemed (80,169) - Vested but not redeemed (deferred) (39,298) Forfeited (22,465) - Nonvested as of December 31, 2022 575,548 $ 881 1.04 |
Zinc Zero Cost Collar (Tables)
Zinc Zero Cost Collar (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Zinc Zero Cost Collar | |
Schedule of realized and unrealized losses related to Zinc Zero Cost Collar | For the year ended December 31, 2022 2021 (in thousands) Realized loss on zinc zero cost collar $ 2,014 $ 1,156 Unrealized (gain) loss on zinc zero cost collar (1) (1,844) 1,844 Total $ 170 $ 3,000 (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. |
Other (Income) Expense, Net (Ta
Other (Income) Expense, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other (Income) Expense, Net | |
Schedule of Other (Income) Expense, net | For the year ended December 31, 2022 2021 (in thousands) Unrealized currency exchange loss (1) $ 1,286 $ 493 Realized currency exchange loss (gain) 121 (111) Realized and unrealized (gain) loss from gold and silver rounds, net (28) 53 Loss on disposal of fixed assets 330 26 Employee benefit obligation (2) - 947 Interest on streaming liabilities 906 - Severance (3) 688 - Other expense (income) 985 (388) Total $ 4,288 $ 1,020 (1) Gains and losses due to changes in fair value are non-cash in nature until such time that they are realized through cash transactions. (2) In 2022, Employee benefit obligation of $0.1 million is recorded in production cost rather than in other expense, net. In 2021, the initial Employee benefit obligation due to the Mexico Labor Reform was recorded as other expense. (3) This is due to reduction of workforce in DDGM. |
Net Income per Common Share (Ta
Net Income per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Net Income per Common Share | |
Schedule of net income per common share | For the year ended December 31, 2022 2021 Numerator: Net (loss) income (in thousands) $ (6,321) $ 8,028 Denominator: Basic weighted average shares of common stock outstanding 88,368,250 75,301,253 Dilutive effect of share-based awards - 307,374 Diluted weighted average common shares outstanding 88,368,250 75,608,627 Basic and diluted net (loss) income per common share $ (0.07) $ 0.11 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Measurement | |
Assets measured at fair value by level within fair value hierarchy | As of As of December 31, December 31, Input Hierarchy Level 2022 2021 (in thousands) Cash and cash equivalents $ 23,675 $ 33,712 Level 1 Accounts receivable, net $ 5,085 $ 8,672 Level 2 Investment in equity securities-Maritime $ 1,559 $ - Level 1 Investment in equity securities-Green Light Metals $ 3,611 $ - Level 3 Derivative liability - zinc zero cost collar $ - $ (1,844) Level 2 |
Gains and Losses Related to Changes in Fair Value | For the year ended December 31, Statements of Operations Classification 2022 2021 Note Realized and unrealized derivative (loss) gain, net 14 $ (363) $ 1,002 Sales, net Realized loss on zinc zero cost collar 17 $ (2,014) $ (1,156) Realized and unrealized loss on zinc zero cost collar Unrealized gain (loss) on zinc zero cost collar 17 $ 1,844 $ (1,844) Realized and unrealized loss on zinc zero cost collar |
Realized and Unrealized Gain Losses on Derivatives | The following tables summarize the Company’s realized/unrealized derivatives, net (in thousands) Gold Silver Copper Lead Zinc Total For the year ended December 31, 2022 Realized loss $ (79) $ - $ (127) $ (150) $ (364) $ (720) Unrealized gain (loss) 136 433 7 153 (372) 357 Total realized/unrealized derivatives, net $ 57 $ 433 $ (120) $ 3 $ (736) $ (363) Gold Silver Copper Lead Zinc Total For the year ended December 31, 2021 Realized (loss) gain $ (47) $ (44) $ 73 $ 163 $ 632 $ 777 Unrealized (loss) gain - (159) 6 (2) 380 225 Total realized/unrealized derivatives, net $ (47) $ (203) $ 79 $ 161 $ 1,012 $ 1,002 |
Supplementary Cash Flow Infor_2
Supplementary Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Supplementary Cash Flow Information | |
Schedule of Other Operating Adjustments and Write Downs | For the year ended December 31, 2022 2021 (in thousands) Unrealized (gain) loss on gold and silver rounds $ (63) $ 53 Unrealized foreign currency exchange loss 1,286 493 Loss on disposition of fixed assets 408 37 Increase (decrease) in reserve for inventory (264) 175 Unrealized (gain) loss on zinc zero cost collar (1,844) 1,844 Other 521 105 Total other operating adjustments $ 44 $ 2,707 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting | |
Schedule of financial information relating to the Company segments | The following table shows selected information from the Consolidated Balance Sheets relating to the Company’s segments (in thousands): Oaxaca, Mexico Michigan, USA Corporate and Other Consolidated As of December 31, 2022 Total current assets $ 38,032 $ 272 $ 7,795 $ 46,099 Total non-current assets 63,342 92,927 1,803 158,072 Total assets $ 101,374 $ 93,199 $ 9,598 $ 204,171 Total current liabilities $ 20,035 $ 3,352 $ 1,295 $ 24,682 Total non-current liabilities 5,533 60,648 1,544 67,725 Total shareholders' equity 75,806 29,199 6,759 111,764 Total liabilities and shareholders' equity $ 101,374 $ 93,199 $ 9,598 $ 204,171 As of December 31, 2021 Total current assets $ 50,057 $ 5,528 $ 3,330 $ 58,915 Total non-current assets 66,756 90,018 73 156,847 Total assets $ 116,813 $ 95,546 $ 3,403 $ 215,762 Total current liabilities $ 25,833 $ 2,459 $ 1,367 $ 29,659 Total non-current liabilities 1,436 63,438 479 65,353 Total shareholders' equity 89,544 29,649 1,557 120,750 Total liabilities and shareholders' equity $ 116,813 $ 95,546 $ 3,403 $ 215,762 |
Schedule of asset balances, excluding investments and intercompany | The following table shows selected information from the Consolidated Statements of Operations relating to the Company’s segments (in thousands): Oaxaca, Mexico Michigan, USA (1) Corporate and Other Consolidated For the year ended December 31, 2022 Sales, net $ 138,724 $ - $ - $ 138,724 Total mine cost of sales, including depreciation 108,863 75 38 108,976 Exploration expense 4,244 8,805 - 13,049 Total other costs and expenses, including G&A 2,741 1,415 10,305 14,461 Provision for income taxes 8,061 (1,123) 1,621 8,559 Net income (loss) $ 14,815 $ (9,172) $ (11,964) $ (6,321) For the year ended December 31, 2021 Sales, net $ 125,196 $ - $ - $ 125,196 Total mine cost of sales, including depreciation 88,449 - - 88,449 Exploration expense 4,813 55 18 4,886 Total other costs and expenses, including G&A 3,995 1,167 9,056 14,218 Provision for income taxes 8,518 305 792 9,615 Net income (loss) $ 19,421 $ (1,527) $ (9,866) $ 8,028 (1) Michigan, USA was acquired on December 10, 2021. |
Aquila Acquisition (Tables)
Aquila Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Aquila Acquisition | |
Schedule of Preliminary Allocation of Purchase Price | AQUILA ACQUISITION As of December 10, 2021 Consideration: Cash Consideration, including transaction costs $ 4,571 Stock Consideration (13,714,630 shares at $1.79 per share) 24,549 Total Consideration: $ 29,120 Value of net assets acquired: Assets: Cash and cash equivalents $ 2,208 Accounts receivable 142 Promissory Note 3,885 Prepaid expenses 29 Security deposits 27 Property, plant and mine development 89,579 Total Assets $ 95,870 Liabilities: Accounts payable and accrued liabilities $ 3,314 Leases payable - current 127 Exploration reclamation liability 611 Gold and silver stream agreements 42,421 Contingent consideration 4,603 Leases payable - long term 205 Deferred tax liability 15,469 Total Liabilities $ 66,750 Total net assets: $ 29,120 |
Nature of Operations and Summ_4
Nature of Operations and Summary of Significant Accounting Policies (Details) $ in Thousands, $ in Millions | 12 Months Ended | |||||
Dec. 28, 2022 shares | Dec. 31, 2022 USD ($) segment | Dec. 31, 2021 USD ($) | Dec. 10, 2021 | Oct. 31, 2021 USD ($) | Oct. 31, 2021 CAD ($) | |
Nature Of Operations [Line Items] | ||||||
Allowance for doubtful accounts | $ 0 | $ 0 | ||||
Number of geographic regions | segment | 3 | |||||
Promissory notes receivable | $ 0 | |||||
Concentrate sale percentage based on provisional sales price | 100% | |||||
Green Light Metals | ||||||
Nature Of Operations [Line Items] | ||||||
Ownership percentage | 28.50% | 28.50% | ||||
Back Forty Project | ||||||
Nature Of Operations [Line Items] | ||||||
Ownership percentage | 100% | |||||
Sales Revenue Net | Sales Revenue | ||||||
Nature Of Operations [Line Items] | ||||||
Concentration risk | 100% | 100% | ||||
Green Light Metals | ||||||
Nature Of Operations [Line Items] | ||||||
Number of shares received in conversion of promissory note | shares | 12,250,000 | |||||
Aquila Resources Inc. | ||||||
Nature Of Operations [Line Items] | ||||||
Percentage of voting equity interests acquired | 100% | 100% | ||||
Aquila Resources Inc. | Green Light Metals | ||||||
Nature Of Operations [Line Items] | ||||||
Promissory notes receivable | $ 3,900 | $ 4.9 |
Nature of Operations and Summ_5
Nature of Operations and Summary of Significant Accounting Policies - Estimated Economic Lives (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Furniture, computer and office equipment | Minimum | |
Property Plant And Equipment [Line Items] | |
Useful life | 3 years |
Furniture, computer and office equipment | Maximum | |
Property Plant And Equipment [Line Items] | |
Useful life | 10 years |
Light Vehicles And Other Mobile Equipment | |
Property Plant And Equipment [Line Items] | |
Useful life | 4 years |
Machinery And Equipment | Maximum | |
Property Plant And Equipment [Line Items] | |
Useful life | 8 years |
Buildings and infrastructure | Maximum | |
Property Plant And Equipment [Line Items] | |
Useful life | 4 years |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Realized (loss) gain - embedded derivative, net | $ (720) | $ 777 |
Unrealized gain - embedded derivative, net | 357 | 225 |
Total sales, net | 138,724 | 125,196 |
Dore | ||
Disaggregation of Revenue [Line Items] | ||
Less: Treatment and refining charges | (59) | (136) |
Total sales, net | 8,168 | 8,662 |
Gold Dore | ||
Disaggregation of Revenue [Line Items] | ||
Total sales, net | 7,997 | 8,120 |
Silver Dore | ||
Disaggregation of Revenue [Line Items] | ||
Total sales, net | 230 | 678 |
Concentrate | ||
Disaggregation of Revenue [Line Items] | ||
Less: Treatment and refining charges | (12,013) | (11,349) |
Total sales, net | 130,919 | 115,532 |
Gold Concentrate | ||
Disaggregation of Revenue [Line Items] | ||
Total sales, net | (46,322) | (32,593) |
Silver Concentrate | ||
Disaggregation of Revenue [Line Items] | ||
Total sales, net | 22,527 | 26,095 |
Copper Concentrate | ||
Disaggregation of Revenue [Line Items] | ||
Total sales, net | 11,987 | 13,495 |
Lead Concentrate | ||
Disaggregation of Revenue [Line Items] | ||
Total sales, net | 11,626 | 13,442 |
Zinc Concentrate | ||
Disaggregation of Revenue [Line Items] | ||
Total sales, net | 50,470 | 41,256 |
Co-products | ||
Disaggregation of Revenue [Line Items] | ||
Realized (loss) gain - embedded derivative, net | $ 700 | $ 800 |
Promissory Note (Details)
Promissory Note (Details) $ / shares in Units, $ in Thousands, $ in Millions | 1 Months Ended | ||||||
Dec. 28, 2022 shares | Dec. 10, 2021 USD ($) | Jun. 30, 2022 CAD ($) | Dec. 31, 2022 CAD ($) $ / shares | Dec. 31, 2022 USD ($) | Oct. 31, 2021 CAD ($) | Oct. 31, 2021 USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Promissory notes receivable | $ 0 | ||||||
Green Light Metals | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Equity Investment | $ 4.9 | $ 3,600 | |||||
Green Light Metals | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Per share for the common shares that were to be issued at maturity | $ / shares | $ 0.40 | ||||||
Number of shares received in conversion of promissory note | shares | 12,250,000 | ||||||
Aquila Resources Inc. | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Value of shares issuable as a part of consideration | $ 24,500 | ||||||
Aquila Resources Inc. | Green Light Metals | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Promissory notes receivable | $ 4.9 | $ 3,900 | |||||
Value of shares issuable as a part of consideration | $ 4.9 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Stockpiles - underground mine | $ 597 | |
Concentrates | 3,271 | $ 2,048 |
Dore, net | 653 | 452 |
Subtotal - product inventories | 4,521 | 2,500 |
Materials and supplies | 8,979 | 7,861 |
Total | 13,500 | 10,361 |
Materials and supplies | ||
Inventory reserve | $ 100 | $ 400 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Taxes [Line Items] | ||
Deferred tax liabilities, assets acquisition | $ 9,200 | |
Withholding tax on dividends | 10% | |
Dividend withholding tax between countries | 5% | |
Dividend Withholding Tax Amount Between Countries | $ 1,300 | $ 500 |
Income tax expense | 8,559 | 9,615 |
Provisional tax expense related to the net change in deferred tax assets | $ (3,545) | (2,116) |
Royalty fee as percent of gross revenue | 0.50% | |
Valuation allowance | $ 31,818 | 36,933 |
Long-term deferred tax liability | 9,224 | 13,126 |
Deferred tax assets, net | 10,745 | 5,917 |
Decrease in valuation allowance | 5,100 | |
Uncertain tax position | 0 | $ 0 |
Aquila | ||
Income Taxes [Line Items] | ||
Long-term deferred tax liability | 14,600 | |
Don David Gold Mine | ||
Income Taxes [Line Items] | ||
Deferred tax assets, net | 5,900 | |
Back Forty Project | ||
Income Taxes [Line Items] | ||
Net operating losses subject to expiration | 24,800 | |
Net operating losses not subject to expiration | 51,100 | |
Annual limitation of net operating loss carry forwards | 1,300 | |
Federal | ||
Income Taxes [Line Items] | ||
Operating loss carry-forward | 73,800 | |
Global Intangible Low Taxed Income [Member] | ||
Income Taxes [Line Items] | ||
Portion of U.S. tax rate | 90% | |
Between 2023 And 2026 [Member] | Foreign Tax Authority | ||
Income Taxes [Line Items] | ||
Tax credits carryforwards | 4,100 | |
Between 2022 and 2024 [Member] | Federal | ||
Income Taxes [Line Items] | ||
Operating loss carry-forward | 200 | |
Between 2027 and 2037 [Member] | Federal | ||
Income Taxes [Line Items] | ||
Operating loss carry-forward | 26,600 | |
No Expiration [Member] | Federal | ||
Income Taxes [Line Items] | ||
Operating loss carry-forward | 47,200 | |
MICHIGAN | State and Local | ||
Income Taxes [Line Items] | ||
Operating loss carry-forward | 22,300 | |
COLORADO | State and Local | ||
Income Taxes [Line Items] | ||
Operating loss carry-forward | 47,300 | |
COLORADO | Between 2022 and 2037 [Member] | State and Local | ||
Income Taxes [Line Items] | ||
Operating loss carry-forward | 30,300 | |
COLORADO | No Expiration [Member] | State and Local | ||
Income Taxes [Line Items] | ||
Operating loss carry-forward | 17,000 | |
CANADA | Between 2026 and 2041 [Member] | Foreign Tax Authority | ||
Income Taxes [Line Items] | ||
Operating loss carry-forward | $ 37,900 | |
Mexico | ||
Income Taxes [Line Items] | ||
MITL corporate income tax rate | 30% | |
MITL royalty tax on mining concessions | 7.50% | |
Amortization period | 10 years | |
Amortization rate | 10% | |
Aquila Resources Inc. | ||
Income Taxes [Line Items] | ||
Valuation allowance | $ 21,800 | $ 27,500 |
Income Taxes - U.S. And Foreign
Income Taxes - U.S. And Foreign Components Of Loss Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Taxes | ||
U.S. Operations | $ (18,317) | $ (6,369) |
Foreign Operations | 20,555 | 24,012 |
Income before income taxes | $ 2,238 | $ 17,643 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Taxes | ||
State Current Taxes | $ (254) | $ 305 |
Foreign Current Taxes | 12,358 | 11,426 |
Total current taxes | 12,104 | 11,731 |
Federal Deferred Taxes | (895) | |
State Deferred Taxes | 25 | |
Foreign Deferred Taxes | (2,675) | (2,116) |
Total deferred taxes | (3,545) | (2,116) |
Total income tax provision | $ 8,559 | $ 9,615 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Taxes Reported At Company's Tax Rate And U.S. Federal Statutory Tax Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Taxes | ||
Tax at statutory rates | $ 470 | $ 3,705 |
Foreign rate differential | 1,867 | 2,095 |
Change in valuation allowance | (5,115) | (975) |
Tax losses subject to limitation | 8,306 | |
Mexico mining tax | 2,168 | 1,590 |
Foreign exchange | 311 | 535 |
Stock option expiration | 519 | 2,471 |
Mexico Withholding Tax | 1,328 | 679 |
Deduction for Inflation in Mexico | (1,083) | (981) |
U.S. State income tax | (786) | 514 |
Other | 574 | (18) |
Total income tax provision | $ 8,559 | $ 9,615 |
Income Taxes - Tax Effects of T
Income Taxes - Tax Effects of Temporary Differences That Give Rise to Significant Portions of Deferred Tax Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Income Taxes | ||
Tax loss carryforward | $ 25,626 | $ 29,496 |
Property, plant, and mine development | 1,429 | 572 |
Share-based compensation | 511 | 1,068 |
Foreign tax credits | 4,089 | 4,089 |
Inventory | 45 | 142 |
Foreign Mining Tax | 1,106 | 793 |
Accounts Payable | 5,606 | 3,363 |
Gold and silver stream agreements liability | 2,144 | 1,681 |
Employee profit sharing obligation | 663 | 566 |
Zinc Derivatives | 608 | |
Other | 1,344 | 472 |
Total deferred tax assets | 42,563 | 42,850 |
Valuation allowance | (31,818) | (36,933) |
Deferred tax assets after valuation allowance | 10,745 | 5,917 |
Deferred tax liability - Property, plant and mine development | (17,724) | (16,722) |
Deferred tax liability - Other | (2,245) | (2,321) |
Total deferred tax liability | (19,969) | (19,043) |
Net deferred tax liability | $ (9,224) | $ (13,126) |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Prepaid Expenses And Other Current Assets | ||
Advances to suppliers | $ 867 | $ 188 |
Prepaid insurance | 1,298 | 1,222 |
Prepaid income tax | 432 | |
Other current assets | 1,242 | 875 |
Total | 3,839 | $ 2,285 |
IVA taxes receivable, net | $ 800 |
Property, Plant and Mine Deve_3
Property, Plant and Mine Development, net - Summary of Property, Equipment and Mine Development (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property, equipment and mine development - net | ||
Property and equipment, gross | $ 284,510 | $ 261,938 |
Accumulated depreciation and amortization | (131,947) | (105,167) |
Total property, equipment and mine development - net | 152,563 | 156,771 |
Accrued capital expenditures | 1,300 | 1,700 |
Asset retirement costs | ||
Property, equipment and mine development - net | ||
Property and equipment, gross | 7,449 | 1,065 |
Construction-In-Progress | ||
Property, equipment and mine development - net | ||
Property and equipment, gross | 351 | 15,854 |
Furniture and office equipment | ||
Property, equipment and mine development - net | ||
Property and equipment, gross | 1,732 | 1,685 |
Land | ||
Property, equipment and mine development - net | ||
Property and equipment, gross | 9,033 | 9,230 |
Mineral interests | ||
Property, equipment and mine development - net | ||
Property and equipment, gross | 79,543 | 79,964 |
Light Vehicles And Other Mobile Equipment | ||
Property, equipment and mine development - net | ||
Property and equipment, gross | 2,327 | 2,224 |
Machinery And Equipment | ||
Property, equipment and mine development - net | ||
Property and equipment, gross | 41,343 | 33,213 |
Mill facilities and infrastructure | ||
Property, equipment and mine development - net | ||
Property and equipment, gross | 35,917 | 24,973 |
Mine Development | ||
Property, equipment and mine development - net | ||
Property and equipment, gross | 105,263 | 92,138 |
Software and licenses | ||
Property, equipment and mine development - net | ||
Property and equipment, gross | $ 1,552 | $ 1,592 |
Property, Plant and Mine Deve_4
Property, Plant and Mine Development, net - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Mine Development, net | ||
Depreciation and amortization expense | $ 28 | $ 16.1 |
Asset retirement costs | $ 6.4 |
Other Non-current Assets (Detai
Other Non-current Assets (Details) $ in Thousands, $ in Millions | Dec. 31, 2022 USD ($) | Dec. 31, 2022 CAD ($) | Dec. 31, 2021 USD ($) |
Other Non-current Assets | |||
Other non-current assets | $ 339 | $ 76 | |
Total | 5,509 | $ 76 | |
Maritime Resources Corp | |||
Other Non-current Assets | |||
Equity Investment | 1,559 | ||
Green Light Metals | |||
Other Non-current Assets | |||
Equity Investment | $ 3,600 | $ 4.9 |
Other Non-current Assets - Narr
Other Non-current Assets - Narrative (Details) $ / shares in Units, shares in Thousands, $ in Thousands, $ in Millions | 12 Months Ended | ||||
Sep. 22, 2022 CAD ($) shares | Dec. 31, 2022 CAD ($) $ / shares | Dec. 31, 2022 USD ($) | Dec. 28, 2022 shares | Sep. 22, 2022 USD ($) shares | |
Green Light Metals | |||||
Other Non-current Assets | |||||
Number of shares purchased or received | 12,250 | ||||
Equity Investment | $ 4.9 | $ 3,600 | |||
Ownership percentage | 28.50% | 28.50% | 28.50% | ||
Maximum per share amount for additional shares being issued. | $ / shares | $ 0.40 | ||||
Maritime Resources Corp | |||||
Other Non-current Assets | |||||
Investment amount | $ 2.4 | $ 1,700 | |||
Number of shares purchased or received | 47,000 | 47,000 | |||
Percentage of investment on issued and outstanding capital | 9.90% | ||||
Equity Investment | $ | $ 1,559 |
Accrued Expenses and Other Li_3
Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 23, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accrued royalty payments | $ 1,787 | $ 1,743 | |
Employee profit sharing obligation | 2,206 | 1,888 | |
Other payables | 1,204 | 1,100 | |
Total accrued expenses and other current liabilities | 5,197 | 4,731 | |
Other Liabilities, Noncurrent [Abstract] | |||
Accrued non-current labor obligation | 1,050 | 920 | |
Share-based compensation liability | 884 | 206 | |
Other long-term liabilities | 556 | 826 | |
Total other non-current liabilities | 2,490 | 1,952 | |
Percentage of statutory profit sharing payable | 10% | ||
Current liabilities and production costs | |||
Employee profit sharing obligation | 2,200 | ||
Other long-term liabilities and other expenses | |||
Other Liabilities, Noncurrent [Abstract] | |||
Accrued non-current labor obligation | $ 1,100 | 900 | |
Deferred Profit Sharing | |||
Other Liabilities, Noncurrent [Abstract] | |||
Percentage of statutory profit sharing payable | 10% | ||
Deferred Profit Sharing | Current liabilities and production costs | |||
Employee profit sharing obligation | $ 1,900 |
Gold and Silver Stream Agreem_3
Gold and Silver Stream Agreements - Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred revenue | $ 43,466 | $ 42,560 |
Gold Streaming Agreement | ||
Deferred revenue | 20,881 | 20,364 |
Silver Streaming Agreement | ||
Deferred revenue | $ 22,585 | $ 22,196 |
Gold and Silver Stream Agreem_4
Gold and Silver Stream Agreements - Narrative (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Nov. 30, 2017 | |
Discount rate (as a percent) | 8% | |||
Deferred revenue | $ 43,466,000 | $ 42,560,000 | ||
Gold Streaming Agreement | ||||
Deferred revenue | 20,881,000 | 20,364,000 | ||
Gold Streaming Agreement | Aquila Resources Inc. | Gold. | ||||
Amount committed | $ 50,000,000 | $ 55,000,000 | ||
Cash acquisition costs | 20,000,000 | |||
Deposit amount | 5,000,000 | |||
Project Debt Finance First Draw Down | $ 25,000,000 | |||
Initial Term of Agreement | 40 years | |||
Automatic Renewal Term of Agreement | 10 years | |||
Deferred revenue | 20,000,000 | |||
Contingent Security Deposit Liability | 30,000,000 | |||
Threshold Stream (as a percent) | 18.50% | |||
Trail Stream (as a percent) | 9.25% | |||
Spot price of gold (as a percent) | 30% | |||
Maximum Amount Receivable on Gold Per Ounce | $ 600 | |||
Threshold price of silver at which deposit received is adjusted | 105,000 | |||
Gold Streaming Agreement | Aquila Resources Inc. | Silver | ||||
Deferred revenue | 17,200,000 | |||
Threshold price of silver at which deposit received is adjusted | $ 4 | |||
Gold Streaming Agreement | Gold Resources Acquisition Company | Aquila Resources Inc. | Gold. | ||||
Ownership percentage | 100% | |||
Silver Streaming Agreement | ||||
Deferred revenue | 22,585,000 | $ 22,196,000 | ||
Silver Streaming Agreement | Aquila Resources Inc. | Silver | ||||
Cash acquisition costs | $ 17,200,000 | |||
Deposit amount | $ 0 | |||
Initial Term of Agreement | 40 years | |||
Automatic Renewal Term of Agreement | 10 years | |||
Commodity produced (as a percent) | 85% |
Reclamation and Remediation (De
Reclamation and Remediation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Asset Retirement Obligation, Roll Forward Analysis | ||
Reclamation liabilities - balance at beginning of period | $ 1,833 | $ 1,890 |
Foreign currency exchange loss (gain) | 116 | (57) |
Reclamation liabilities - balance at end of period | 1,949 | 1,833 |
Asset retirement obligation - balance at beginning of period | 1,279 | 1,208 |
Changes in estimate | 6,384 | |
Accretion | 668 | 109 |
Foreign currency exchange loss (gain) | 86 | (38) |
Asset retirement obligation - balance at end of period | 8,417 | 1,279 |
Total period end balance | $ 10,366 | $ 3,112 |
Reclamation and Remediation - N
Reclamation and Remediation - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Undiscounted reclamation liabilities | $ 1,949 | $ 1,833 | $ 1,890 |
Asset Retirement Obligation | 8,417 | 1,279 | $ 1,208 |
Exploration reclamation liability | 10,366 | 3,112 | |
Increase in estimated liability | 6,400 | ||
Don David Gold Mine | |||
Undiscounted reclamation liabilities | $ 1,900 | 1,800 | |
Reclamation and remediation discount rate | 8% | ||
Asset Retirement Obligation | $ 8,400 | 1,300 | |
Back Forty Project | |||
Exploration reclamation liability | $ 400 | $ 600 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) $ in Thousands, $ in Millions | 12 Months Ended | ||||
Dec. 30, 2013 CAD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 CAD ($) | Dec. 31, 2021 USD ($) | Dec. 10, 2021 USD ($) | |
Leases [Line Items] | |||||
Equipment purchase commitments | $ 1,200 | $ 400 | |||
Contingent consideration | 2,179 | $ 4,603 | |||
Contingent consideration, current | 2,211 | ||||
HudBay Michigan Inc | |||||
Leases [Line Items] | |||||
Management payment | $ 2,200 | $ 3 | |||
Ownership interest purchase to be prevented | 51% | 51% | |||
Contingent consideration, current | $ 2,200 | ||||
Aquila Resources Inc. | |||||
Leases [Line Items] | |||||
Percentage of voting equity interests acquired | 100% | 100% | |||
Aquila Resources Inc. | Gold and silver streaming agreement with Osisko Bermuda Limited | Back Forty Project | |||||
Leases [Line Items] | |||||
Deposit amount | $ 37,200 | ||||
Aquila Resources Inc. | HudBay Michigan Inc | |||||
Leases [Line Items] | |||||
Percentage of voting equity interests acquired | 100% | ||||
Aquila Resources Inc. | Back Forty Project | |||||
Leases [Line Items] | |||||
Percentage of ownership interest held | 100% | ||||
Contingent consideration | $ 9 | ||||
Contingent consideration due upon project financing | $ 3 | ||||
Percentage of contingent consideration payable in shares | 50% | ||||
Contingent consideration payable in shares | $ 3 | ||||
Right to repurchase ownership interest | 51% | ||||
Contingent consideration | $ 4,400 | ||||
Aquila Resources Inc. | Back Forty Project | 90 days after the commencement of commercial production | |||||
Leases [Line Items] | |||||
Contingent consideration payable in cash | $ 2 | ||||
Aquila Resources Inc. | Back Forty Project | 270 days after the commencement of commercial production | |||||
Leases [Line Items] | |||||
Contingent consideration payable in cash | 2 | ||||
Aquila Resources Inc. | Back Forty Project | 450 days after the commencement of commercial production | |||||
Leases [Line Items] | |||||
Contingent consideration payable in cash | $ 2 | ||||
HudBay Michigan Inc | HudBay Michigan Inc | |||||
Leases [Line Items] | |||||
Percentage of net smelter return royalty on production | 1% | ||||
HudBay Michigan Inc | Back Forty Project | |||||
Leases [Line Items] | |||||
Percentage of voting equity interests acquired at the asset acquisition date tied to the development of project | 51% |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 10, 2021 | Apr. 03, 2018 | |
Cash dividend rate declared, per common share | $ 0.04 | $ 0.04 | ||
Dividend per share declared and paid | $ 0.04 | $ 0.0433 | ||
Dividends declared | $ 3.1 | |||
Dividends paid | $ 3.5 | $ 3.4 | ||
ATM Agreement | ||||
Number of common stock sold | 0 | 0 | ||
Aquila Resources Inc. | ||||
Common stock issued for the acquisition of mineral properties (in share) | 13,714,630 | |||
Share issue price ( in dollars per share) | $ 1.79 | |||
Percentage of voting equity interests acquired | 100% | 100% | ||
Maximum | ATM Agreement | ||||
Common stock aggregate gross sales price | $ 75 |
Derivatives (Details)
Derivatives (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) $ / t $ / oz oz t | Dec. 31, 2021 USD ($) | |
Embedded Derivative [Line Items] | ||
Unsettled sales contracts value | $ 27,731 | |
Realized loss on embedded derivative | 720 | $ (777) |
Realized (loss) gain | (720) | 777 |
Unrealized gain (loss) | 357 | 225 |
Trading Agreement With Auramet International LLC | Metal And Currencies Derivatives | ||
Embedded Derivative [Line Items] | ||
Realized (loss) gain | (2,000) | (1,200) |
Unrealized gain (loss) | $ 1,800 | (1,800) |
Gold | ||
Embedded Derivative [Line Items] | ||
Under contract | oz | 4,118 | |
Average forward price | $ / oz | 1,752 | |
Unsettled sales contracts value | $ 7,215 | |
Realized (loss) gain | (79) | (47) |
Unrealized gain (loss) | $ 136 | |
Silver. | ||
Embedded Derivative [Line Items] | ||
Under contract | oz | 279,537 | |
Average forward price | $ / oz | 21.45 | |
Unsettled sales contracts value | $ 5,996 | |
Realized (loss) gain | (44) | |
Unrealized gain (loss) | $ 433 | (159) |
Copper | ||
Embedded Derivative [Line Items] | ||
Under contract | t | 231 | |
Average forward price | $ / t | 8,294 | |
Unsettled sales contracts value | $ 1,916 | |
Realized (loss) gain | (127) | 73 |
Unrealized gain (loss) | $ 7 | 6 |
Lead | ||
Embedded Derivative [Line Items] | ||
Under contract | t | 1,386 | |
Average forward price | $ / t | 2,018 | |
Unsettled sales contracts value | $ 2,797 | |
Realized (loss) gain | (150) | 163 |
Unrealized gain (loss) | $ 153 | (2) |
Zinc | ||
Embedded Derivative [Line Items] | ||
Under contract | t | 3,268 | |
Average forward price | $ / t | 3,001 | |
Unsettled sales contracts value | $ 9,807 | |
Realized loss on embedded derivative | 2,000 | |
Realized (loss) gain | (364) | 632 |
Unrealized gain (loss) | $ (372) | $ 380 |
Zinc | Minimum | ||
Embedded Derivative [Line Items] | ||
Call option sold price per tonne | $ / t | 3,288 | |
Zinc | Maximum | ||
Embedded Derivative [Line Items] | ||
Derivative, Average Cap Price | $ / t | 3,516 |
Employee Benefits (Details)
Employee Benefits (Details) | 12 Months Ended | |
Apr. 23, 2021 | Dec. 31, 2022 | |
Employee Benefits | ||
Defined contribution plan maximum percentage amount of the employee's gross pay that the employee can contribute | 50% | |
Percentage Of Statutory Profit Sharing Payable | 10% |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Options granted | 320,816 | 600,000 | |
Weighted-average grant date fair value of options granted | $ 1.06 | $ 1.65 | |
Intrinsic value of shares | $ 100 | $ 100 | |
Weighted average exercise price | $ 1.31 | $ 1.31 | $ 1.31 |
Fair value | $ 1,000 | $ 300 | |
Number of stock options exercised | 355,000 | 253,335 | |
Shares exercised | 237,719 | ||
Shares not exercised | 15,616 | ||
Common shares issued | 0 | ||
Estimated unrecognized compensation expense | $ 500 | ||
Accrued Liabilities Current | $ 5,197 | $ 4,731 | |
Additionally number of shares granted | 5,000,000 | ||
STIP | |||
Accrued Liabilities Current | $ 1,000 | $ 700 | |
Restricted stock units | |||
Vesting period | 3 years | ||
Estimated unrecognized compensation expense | $ 900 | ||
Number of units Granted | 611,681 | 2,614 | |
Weighted-average fair value of per unit | $ 1.97 | $ 2.56 | |
Volume weighted average period | 20 days | ||
Vested and redeemed | 80,169 | 75,262 | |
Forfeited | 22,465 | 171,418 | |
Total intrinsic value | $ 300 | $ 100 | |
Performance stock units | |||
Vesting period | 3 years | ||
Number of units Granted | 695,041 | 0 | |
Non-current liability | $ 300 | ||
Weighted-average fair value of per unit | $ 1.99 | ||
Volume weighted average period | 20 days | ||
Vested and redeemed | 0 | ||
Forfeited | 0 | ||
Deferred stock units | |||
Other non-current liability | $ 600 | $ 200 | |
Vesting period | 10 years | ||
Number of units Granted | 214,357 | 130,000 | |
Additionally number of shares granted | 14,382 | 1,960 | |
Weighted-average fair value of per unit | $ 2.93 | $ 3.21 | |
Volume weighted average period | 20 days | ||
Vested and redeemed | 0 | ||
Forfeited | 0 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-based compensation expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Stock-based compensation expense | $ 1,955 | $ 875 |
Stock options | ||
Stock-based compensation expense | 646 | 549 |
Restricted stock units | ||
Stock-based compensation expense | 631 | 120 |
Performance stock units | ||
Stock-based compensation expense | 332 | |
Deferred stock units | ||
Stock-based compensation expense | $ 346 | $ 206 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity under Incentive Plan (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding, Beginning Balance (in shares) | 2,454,700 | 4,173,168 | |
Granted (in shares) | 320,816 | 600,000 | |
Exercised (in shares) | (355,000) | (253,335) | |
Expired (in shares) | (945,200) | (2,035,966) | |
Forfeited (in shares) | (29,167) | ||
Outstanding, Ending Balance (in shares) | 1,475,316 | 2,454,700 | 4,173,168 |
Vested and exercisable (in shares) | 894,769 | ||
Weighted Average Exercise Price | |||
Outstanding Weighted Average Exercise Price, Beginning Balance | $ 4.62 | $ 6.83 | |
Weighted Average Exercise Price, Granted | 2.41 | 3.22 | |
Weighted average exercise price | 1.31 | 1.31 | $ 1.31 |
Weighted Average Exercise Price, Expired | 7.78 | 9.14 | |
Weighted Average Exercise Price, Forfeited | 5.89 | ||
Outstanding Weighted Average Exercise Price, Ending Balance | 2.90 | $ 4.62 | $ 6.83 |
Weighted Average Exercise Price, Vested and exercisable as of end of period | $ 2.85 | ||
Weighted -Average Remaining contractual Term (in years) | |||
Weighted Average Remaining Contractual Term (in years), Outstanding as Beginning of period | 7 years 4 months 17 days | 4 years 6 months 29 days | 3 years 6 months 29 days |
Weighted Average Remaining Contractual Term (in years), Outstanding as of end of period | 7 years 4 months 17 days | 4 years 6 months 29 days | 3 years 6 months 29 days |
Weighted Average Remaining Contractual Term (in years), Vested and exercisable as of end of period | 6 years 8 months 12 days | ||
Additional disclosures | |||
Aggregate Intrinsic Value, Outstanding as of beginning of period | $ 109 | $ 1,324 | |
Aggregate Intrinsic Value, Outstanding as of end of period | 18 | $ 109 | $ 1,324 |
Aggregate Intrinsic Value, Vested and exercisable as of end of period | $ 18 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Stock Options by Exercise Price Range (Details) | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding Number of Options | shares | 1,475,316 |
Outstanding Weighted Average Remaining Contractual Term (in years) | 7 years 4 months 17 days |
Outstanding Weighted Average Exercise Price (per share) | $ 2.90 |
Exercisable Number of Options | shares | 894,769 |
Exercisable Weighted Average Exercise Price (per share) | $ 2.85 |
$0.00 - $2.50 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Stock options exercise price range, lower limit | 0 |
Stock options exercise price range, upper limit | $ 2.50 |
Outstanding Number of Options | shares | 540,816 |
Outstanding Weighted Average Remaining Contractual Term (in years) | 7 years 6 months 3 days |
Outstanding Weighted Average Exercise Price (per share) | $ 2.19 |
Exercisable Number of Options | shares | 326,937 |
Exercisable Weighted Average Exercise Price (per share) | $ 2.05 |
$2.51 -$5.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Stock options exercise price range, lower limit | 2.51 |
Stock options exercise price range, upper limit | $ 5 |
Outstanding Number of Options | shares | 898,000 |
Outstanding Weighted Average Remaining Contractual Term (in years) | 7 years 6 months 14 days |
Outstanding Weighted Average Exercise Price (per share) | $ 3.20 |
Exercisable Number of Options | shares | 531,332 |
Exercisable Weighted Average Exercise Price (per share) | $ 3.11 |
$5.01 - $7.50 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Stock options exercise price range, lower limit | 5.01 |
Stock options exercise price range, upper limit | $ 7.50 |
Outstanding Number of Options | shares | 36,500 |
Outstanding Weighted Average Remaining Contractual Term (in years) | 1 year 6 months 25 days |
Outstanding Weighted Average Exercise Price (per share) | $ 6.18 |
Exercisable Number of Options | shares | 36,500 |
Exercisable Weighted Average Exercise Price (per share) | $ 6.18 |
Stock-Based Compensation - Blac
Stock-Based Compensation - Black-Scholes Assumptions (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Stock-Based Compensation | ||
Risk-free interest rate | 2.13% | 0.55% |
Dividend yield | 1.66% | 0.26% |
Expected volatility | 56.39% | 64.71% |
Expected life in years | 5 years | 6 years |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of RSU activity under Incentive Plan (Details) - Restricted stock units - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Shares | |||
Nonvested, Beginning Balance (in shares) | 105,799 | 349,865 | |
Granted (in shares) | 611,681 | 2,614 | |
Vested and redeemed (in shares) | (80,169) | (75,262) | |
Vested but not redeemed (deferred) (in shares) | (39,298) | ||
Forfeited (in shares) | (22,465) | (171,418) | |
Nonvested, Ending Balance | 575,548 | 105,799 | 349,865 |
Aggregate Intrinsic Value | |||
Aggregate Intrinsic Value, Outstanding | $ 881 | $ 165 | $ 1,017 |
Weighted Average Remaining Contractual Term (in years) | |||
Weighted Average Remaining Contractual Term (in years) | 1 year 14 days | 1 year 25 days | 4 years 10 months 13 days |
Zinc Zero Cost Collar (Details)
Zinc Zero Cost Collar (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Realized (gain) loss on zinc zero cost collar | $ 720 | $ (777) |
Unrealized (gain) loss on zinc zero cost collar | (357) | (225) |
Total | 170 | 3,000 |
Zinc | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Realized (gain) loss on zinc zero cost collar | 364 | (632) |
Unrealized (gain) loss on zinc zero cost collar | 372 | (380) |
Zero Cost Collar | Zinc | Not designated as hedge | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Realized (gain) loss on zinc zero cost collar | 2,014 | 1,156 |
Unrealized (gain) loss on zinc zero cost collar | (1,844) | 1,844 |
Total | $ 170 | $ 3,000 |
Other (Income) Expense, Net (De
Other (Income) Expense, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Unrealized currency exchange loss | $ 1,286 | $ 493 |
Realized currency exchange loss (gain) | 121 | (111) |
Realized and unrealized (gain) loss from gold and silver rounds, net | (28) | 53 |
Loss on disposal of fixed assets | 330 | 26 |
Employee benefit obligation | 947 | |
Interest on streaming liabilities | 906 | |
Severance | 688 | |
Other expense (income) | 985 | (388) |
Total | 4,288 | $ 1,020 |
Other Expense | ||
Employee benefit obligation | $ 100 |
Net Income per Common Share - N
Net Income per Common Share - Narrative (Details) - $ / shares shares in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Net Income per Common Share | ||
Stock options excluded from computation of diluted weighted average share outstanding | 1.5 | 2.2 |
Shares excluded from weighted average shares outstanding, exercise price | $ 2.90 | $ 10.69 |
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 | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Net Income per Common Share | ||
Net income | $ (6,321) | $ 8,028 |
Basic weighted average shares of common stock outstanding | 88,368,250 | 75,301,253 |
Dilutive effect of share-based awards | 307,374 | |
Diluted weighted average common shares outstanding | 88,368,250 | 75,608,627 |
Basic net income (loss) per common share: | ||
Basic net (loss) income per common share | $ (0.07) | $ 0.11 |
Diluted net income (loss) per common share: | ||
Diluted net (loss) income per common share | $ (0.07) | $ 0.11 |
Fair Value Measurement (Details
Fair Value Measurement (Details) $ / shares in Units, $ in Thousands, $ in Millions | 12 Months Ended | ||||||
Dec. 28, 2022 shares | Sep. 22, 2022 CAD ($) shares | Sep. 22, 2022 USD ($) shares | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2022 CAD ($) $ / shares | Dec. 31, 2022 USD ($) | |
Green Light Metals [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Share price | $ / shares | $ 0.40 | ||||||
Green Light Metals [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Number of shares received in conversion of promissory note | shares | 12,250,000 | ||||||
Maritime Resources Corp | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Investment made | $ 2.4 | $ 1,700 | |||||
Number of equity securities purchased | shares | 47 | 47 | |||||
Realized and unrealized derivative (loss) gain, net | $ 200 | ||||||
Equity Investment | $ 1,559 | ||||||
Share price | $ / shares | $ 0.045 | ||||||
Green Light Metals [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Ownership percentage | 28.50% | 28.50% | 28.50% | ||||
Equity Investment | $ 4.9 | $ 3,600 | |||||
Maximum | Maritime Resources Corp | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Ownership percentage | 10% | 10% | |||||
Accounts Receivable | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Realized and unrealized derivative (loss) gain, net | $ 600 | $ 200 | |||||
Level 1 | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Cash and cash equivalents | 33,712 | 23,675 | |||||
Level 1 | Maritime Resources Corp | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Investment in equity securities | 1,559 | ||||||
Level 2 | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Accounts receivable, net | 8,672 | 5,085 | |||||
Derivative liability - zinc zero cost collar | $ (1,844) | ||||||
Level 3 | Green Light Metals [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Investment in equity securities | $ 3,611 |
Fair Value Measurement - Statem
Fair Value Measurement - Statement Of Income Classification (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value Statement Of Income Classification [Line Items] | ||
Unrealized gain (loss) on zinc zero cost collar | $ 1,844 | $ (1,844) |
Sales, net | ||
Fair Value Statement Of Income Classification [Line Items] | ||
Realized and unrealized derivative (loss) gain, net | (363) | 1,002 |
Other expenses, net | ||
Fair Value Statement Of Income Classification [Line Items] | ||
Realized gain (loss) on zinc zero cost collar | (2,014) | (1,156) |
Unrealized gain (loss) on zinc zero cost collar | $ 1,844 | $ (1,844) |
Fair Value Measurement - Realiz
Fair Value Measurement - Realized Unrealized Derivatives, net (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Derivatives, Fair Value [Line Items] | ||
Realized (loss) gain | $ (720) | $ 777 |
Unrealized gain (loss) | 357 | 225 |
Total realized/ unrealized derivatives, net | (363) | 1,002 |
Gold | ||
Derivatives, Fair Value [Line Items] | ||
Realized (loss) gain | (79) | (47) |
Unrealized gain (loss) | 136 | |
Total realized/ unrealized derivatives, net | 57 | (47) |
Silver. | ||
Derivatives, Fair Value [Line Items] | ||
Realized (loss) gain | (44) | |
Unrealized gain (loss) | 433 | (159) |
Total realized/ unrealized derivatives, net | 433 | (203) |
Copper | ||
Derivatives, Fair Value [Line Items] | ||
Realized (loss) gain | (127) | 73 |
Unrealized gain (loss) | 7 | 6 |
Total realized/ unrealized derivatives, net | (120) | 79 |
Lead | ||
Derivatives, Fair Value [Line Items] | ||
Realized (loss) gain | (150) | 163 |
Unrealized gain (loss) | 153 | (2) |
Total realized/ unrealized derivatives, net | 3 | 161 |
Zinc | ||
Derivatives, Fair Value [Line Items] | ||
Realized (loss) gain | (364) | 632 |
Unrealized gain (loss) | (372) | 380 |
Total realized/ unrealized derivatives, net | $ (736) | $ 1,012 |
Supplementary Cash Flow Infor_3
Supplementary Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Supplementary Cash Flow Information | ||
Unrealized loss (gain) on gold and silver rounds | $ (63) | $ 53 |
Unrealized foreign currency exchange loss | 1,286 | 493 |
Loss on disposition of fixed assets | 408 | 37 |
Increase (decrease) in reserve for inventory | (264) | 175 |
Unrealized (gain) loss on zinc zero cost collar | (1,844) | 1,844 |
Other | 521 | 105 |
Total other operating adjustments | $ 44 | $ 2,707 |
Segment Reporting (Details)
Segment Reporting (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) segment | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Number of geographic regions | segment | 3 | ||
Balance sheet information | |||
Total current assets | $ 46,099 | $ 58,915 | |
Total non-current assets | 158,072 | 156,847 | |
Total assets | 204,171 | 215,762 | |
Total current liabilities | 24,682 | 29,659 | |
Total non-current liabilities | 67,725 | 65,353 | |
Total shareholders' equity | 111,764 | 120,750 | $ 90,538 |
Total liabilities and shareholders' equity | 204,171 | 215,762 | |
Income statement information | |||
Sales, net | 138,724 | 125,196 | |
Total mine cost of sales | 108,976 | 88,449 | |
Exploration expenses | 13,049 | 4,886 | |
Total other costs and expenses | 14,461 | 14,218 | |
Provision for income taxes | 8,559 | 9,615 | |
Net income (loss) | (6,321) | 8,028 | |
Oaxaca, Mexico | |||
Income statement information | |||
Exploration expenses | 4,244 | 4,831 | |
Michigan, USA | |||
Income statement information | |||
Exploration expenses | 8,805 | 55 | |
Operating Segments | Oaxaca, Mexico | |||
Balance sheet information | |||
Total current assets | 38,032 | 50,057 | |
Total non-current assets | 63,342 | 66,756 | |
Total assets | 101,374 | 116,813 | |
Total current liabilities | 20,035 | 25,833 | |
Total non-current liabilities | 5,533 | 1,436 | |
Total shareholders' equity | 75,806 | 89,544 | |
Total liabilities and shareholders' equity | 101,374 | 116,813 | |
Income statement information | |||
Sales, net | 138,724 | 125,196 | |
Total mine cost of sales | 108,863 | 88,449 | |
Exploration expenses | 4,244 | 4,813 | |
Total other costs and expenses | 2,741 | 3,995 | |
Provision for income taxes | 8,061 | 8,518 | |
Net income (loss) | 14,815 | 19,421 | |
Operating Segments | Michigan, USA | |||
Balance sheet information | |||
Total current assets | 272 | 5,528 | |
Total non-current assets | 92,927 | 90,018 | |
Total assets | 93,199 | 95,546 | |
Total current liabilities | 3,352 | 2,459 | |
Total non-current liabilities | 60,648 | 63,438 | |
Total shareholders' equity | 29,199 | 29,649 | |
Total liabilities and shareholders' equity | 93,199 | 95,546 | |
Income statement information | |||
Total mine cost of sales | 75 | ||
Exploration expenses | 8,805 | 55 | |
Total other costs and expenses | 1,415 | 1,167 | |
Provision for income taxes | (1,123) | 305 | |
Net income (loss) | (9,172) | (1,527) | |
Corporate and Other | |||
Balance sheet information | |||
Total current assets | 7,795 | 3,330 | |
Total non-current assets | 1,803 | 73 | |
Total assets | 9,598 | 3,403 | |
Total current liabilities | 1,295 | 1,367 | |
Total non-current liabilities | 1,544 | 479 | |
Total shareholders' equity | 6,759 | 1,557 | |
Total liabilities and shareholders' equity | 9,598 | 3,403 | |
Income statement information | |||
Total mine cost of sales | 38 | ||
Exploration expenses | 18 | ||
Total other costs and expenses | 10,305 | 9,056 | |
Provision for income taxes | 1,621 | 792 | |
Net income (loss) | $ (11,964) | $ (9,866) |
Aquila Acquisitions (Details)
Aquila Acquisitions (Details) $ / shares in Units, $ in Thousands | Dec. 10, 2021 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) shares |
Asset Acquisition [Line Items] | |||
Common Stock Shares Outstanding | shares | 88,398,109 | 88,338,774 | |
Assets: | |||
Cash and cash equivalents | $ 23,675 | $ 33,712 | |
Accounts receivable | 5,085 | 8,672 | |
Promissory note | 3,885 | ||
Prepaid expenses | 3,839 | 2,285 | |
Property, plant and mine development | 152,563 | 156,771 | |
Total assets | 204,171 | 215,762 | |
Liabilities: | |||
Exploration reclamation liability | 10,366 | 3,112 | |
Gold and silver stream agreements | 43,466 | 42,560 | |
Deferred tax liability | 9,224 | 13,126 | |
Total liabilities | $ 92,407 | $ 95,012 | |
Aquila Resources Inc. | |||
Asset Acquisition [Line Items] | |||
Exchange ratio of shares received by each holder | 0.0399 | ||
Common Stock Shares Issued | shares | 343,725,063 | ||
Common Stock Shares Outstanding | shares | 343,725,063 | ||
Consideration per share | $ / shares | $ 1.79 | ||
Transaction Costs | $ 4,600 | ||
Consideration: | |||
Stock Consideration (13,714,630 shares at $1.79 per share) | $ 24,500 | ||
Number of shares issued | shares | 13,714,630 | ||
Total Consideration: | $ 29,100 |