Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2020 | |
Cover [Abstract] | |
Entity Registrant Name | EXCELLON RESOURCES INC |
Entity Central Index Key | 0001263011 |
Document Type | 6-K |
Document Period End Date | Dec. 31, 2020 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2020 |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 8,380 | $ 6,344 |
Marketable securities and warrants | 2,350 | 348 |
Trade receivables | 1,782 | 2,278 |
VAT recoverable | 5,573 | 4,010 |
Inventories | 2,385 | 2,615 |
Other current assets | 1,323 | 1,599 |
Current assets | 21,793 | 17,194 |
Non-current assets | ||
Property, plant and equipment | 25,830 | 24,818 |
Mineral rights | 20,511 | 2,676 |
Deferred income tax assets | 5,145 | 10,894 |
Total assets | 73,279 | 55,582 |
Current liabilities | ||
Trade and other payables | 8,172 | 7,132 |
VAT payable | 3,415 | 1,927 |
Current portion of long-term lease liabilities | 405 | 489 |
Current liabilities | 11,992 | 9,548 |
Non-current liabilities | ||
Convertible debentures | 7,283 | |
Long-term lease liabilities | 425 | 788 |
Provisions | 2,208 | 2,243 |
Deferred income tax liabilities | 929 | 811 |
Total liabilities | 22,837 | 13,390 |
Equity | ||
Share capital | 136,199 | 114,840 |
Contributed surplus | 34,015 | 28,730 |
Accumulated other comprehensive loss | (15,380) | (13,006) |
Deficit | (104,392) | (88,372) |
Total equity | 50,442 | 42,192 |
Total liabilities and equity | $ 73,279 | $ 55,582 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Profit or loss [abstract] | ||
Revenues | $ 26,202 | $ 26,469 |
Production costs | (19,981) | (23,216) |
Depletion and amortization | (4,649) | (4,708) |
Cost of Sales | (24,630) | (27,924) |
Gross Profit (Loss) | 1,572 | (1,455) |
Administrative expenses | (4,630) | (3,448) |
Share-based payments | (1,875) | (1,102) |
Amortization | (391) | (272) |
General and administrative expenses | (6,896) | (4,822) |
Exploration | (4,032) | (3,853) |
Other (expenses) income, net | (373) | 782 |
Finance (expenses) income, net | (2,508) | 295 |
Loss before income taxes | (12,237) | (9,053) |
Income tax expense | (3,783) | (1,022) |
Net Loss | (16,020) | (10,075) |
Items that may be reclassified subsequently to profit and loss: | ||
Foreign currency translation differences | (2,374) | 2,116 |
Total other comprehensive (loss) income | (2,374) | 2,116 |
Total comprehensive loss | $ (18,394) | $ (7,959) |
Loss per share | ||
Basic and diluted | $ (0.55) | $ (0.49) |
Weighted average number of shares | ||
Basic and diluted | 28,881,800 | 20,674,866 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flow - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flow provided by (used in) Operating activities | ||
Net loss for the period | $ (16,020) | $ (10,075) |
Adjustments for non-cash items: | ||
Depletion and amortization | 4,971 | 4,941 |
Income tax expense | 3,783 | 89 |
Share-based compensation | 1,799 | 1,099 |
Post-employment benefits | 160 | (33) |
Interest expense | 2,015 | 119 |
Unrealized loss on currency hedges | 426 | 368 |
Loss on disposal of mineral rights | 188 | 104 |
Unrealized gain on warrants liability | (323) | |
Unrealized gain on marketable securities and warrants | (712) | (290) |
Discount on shares issued to settle payables | 196 | |
Taxes paid | (539) | (313) |
Operating cash flows before changes in working capital | (3,733) | (4,314) |
Changes in non-cash working capital | 3,984 | 467 |
Net cash from operating activities | 251 | (3,847) |
Investing activities | ||
Purchase of property, plant and equipment | (8,341) | (5,726) |
Acquisition of mineral rights | (148) | (76) |
Transaction costs paid on acquisition of Otis Gold Corp. | (1,723) | |
Loan to Otis Gold Corp., net of cash received on acquisition | (304) | |
Net cash used in investing activities | (10,516) | (5,802) |
Financing activities | ||
Proceeds from issuance of Convertible Debt | 12,762 | |
Proceeds from Credit Facility | 5,871 | |
Repayment of Credit Facility | (6,000) | |
Proceeds on issuance of shares from equity financing | 7,982 | |
Proceeds from options and warrants exercised | 380 | 721 |
Lease payments | (360) | (334) |
Interest paid | (423) | (30) |
Net cash from financing activities | 12,230 | 8,339 |
Effect of exchange rate changes on cash and cash equivalents | 71 | 1,237 |
Change in cash and cash equivalents | 2,036 | (73) |
Cash and cash equivalents - Beginning of the year | 6,344 | 6,417 |
Cash and cash equivalents - End of the year | $ 8,380 | $ 6,344 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Share Capital [Member] | Contributed Surplus [Member] | Accumulated other comprehensive income (loss) [Member] | Deficit [Member] | Total | |
Balance at Dec. 31, 2018 | $ 106,786 | $ 26,811 | $ (15,122) | $ (78,297) | $ 40,178 | |
Statement Line Items [Line Items] | ||||||
Net loss for the period | (10,075) | (10,075) | ||||
Total other comprehensive income (loss) | 2,116 | 2,116 | ||||
Total comprehensive income (loss) | 2,116 | (10,075) | (7,959) | |||
Stock options, Value of services recognized | 406 | 406 | ||||
Stock options, Proceeds on issuing shares | 38 | 38 | ||||
Deferred and restricted share units, Value of units recognized | 246 | 434 | 680 | |||
Warrants, Value of warrants issued in Bought Deal | 1,079 | 1,079 | ||||
Warrants, Proceeds on issuing shares | 699 | 699 | ||||
Value of share issued in asset acquisition | 169 | 169 | ||||
Value of share issued in Bought Deal | 6,903 | 6,903 | ||||
Balance at Dec. 31, 2019 | 114,840 | 28,730 | (13,006) | (88,372) | 42,192 | |
Statement Line Items [Line Items] | ||||||
Net loss for the period | (16,020) | (16,020) | ||||
Total other comprehensive income (loss) | (2,374) | (2,374) | ||||
Total comprehensive income (loss) | (2,374) | (16,020) | (18,394) | |||
Stock options, Value of services recognized | 469 | 469 | ||||
Stock options, Proceeds on issuing shares | 602 | (230) | 372 | |||
Deferred and restricted share units, Value of units recognized | 182 | 182 | ||||
Warrants, Proceeds on issuing shares | 8 | (2) | 6 | |||
Value of share issued in asset acquisition | 246 | 246 | ||||
Acquisition of Otis Gold Corp. | 16,370 | 594 | 16,964 | |||
Shares issued as part of Credit Facility | 180 | 180 | ||||
Shares issued to settle payables | $ 1,738 | $ 1,738 | [1] | |||
Deferred and restricted share units, Shares issued on exercise of RSUs and DSUs | 1,627 | (479) | 1,148 | |||
Warrants, Value of warrants issued with Convertible Debentures | $ 1,001 | $ 1,001 | ||||
Convertible Debentures, Value of conversion options on Convertible Debentures | 3,750 | 3,750 | ||||
Convertible Debentures, Interest payable settled with shares | 588 | 588 | [2] | |||
Balance at Dec. 31, 2020 | $ 136,199 | $ 34,015 | $ (15,380) | $ (104,392) | $ 50,442 | |
[1] | During the second and third quarters of 2020, the Company issued 670,974 common shares in settlement of certain Otis transaction costs and Mexican trade payables totaling C$2,098, as approved by the TSX. An amount of $196 (C$261) was recorded in other expenses to reflect the difference between the market value of the shares issued and the carrying amount of the payables settled. | |||||
[2] | On December 31, 2020, the Company elected to pay the first interest payment on the Debentures (Note 16) in common shares valued at C$754 ($588). |
General Information
General Information | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of reserves within equity [abstract] | |
General Information | 1. GENERAL INFORMATION Excellon Resources Inc. (the “Company” or “Excellon”) is a silver mining and exploration company listed on the Toronto Stock Exchange and NYSE American, LLC exchange (the “NYSE American”) under the symbol EXN and the Frankfurt Stock Exchange under the symbol E4X2. Excellon’s vision is to create wealth by realizing strategic opportunities through discipline and innovation for the benefit of employees, communities and shareholders. The Company is advancing a precious metals growth pipeline that includes: Platosa, Mexico’s highest-grade silver mine since production commenced in 2005; Kilgore, a high quality gold development project in Idaho; and an option on Silver City, a high-grade epithermal silver district in Saxony, Germany with 750 years of mining history and no modern exploration. The Company also aims to continue capitalizing on current market conditions by acquiring undervalued projects. On April 2, 2020, the Company announced a temporary suspension of mining, milling and exploration activities at its Mexican operations in accordance with the Mexican Presidential Order to mitigate the spread of COVID-19. The Mexican Government subsequently declared mining an essential service, and companies were allowed to commence activities to restart operations on June 1, 2020, provided they met the COVID-19 guidelines established by the Mexican Government. The Company recommenced mining and exploration activities in June 2020 and concentrate shipments resumed on July 6, 2020. On April 22, 2020, the Company completed the acquisition of Otis Gold Corp. (“Otis”) by way of a statutory plan of arrangement resulting in Otis becoming a wholly-owned subsidiary of Excellon (Note 5). In September 2020, the Company completed a consolidation of its common shares at a ratio of five pre-consolidation common shares for one post-consolidation common share effective September 10, 2020, and the listing of its common shares on the NYSE American, LLC exchange effective September 23, 2020. As a result of the consolidation, shares issuable pursuant to the Company’s outstanding options, warrants, restricted share units and other convertible securities were proportionally adjusted on the same basis. All common share numbers, numbers of shares issuable under stock options, warrants and restricted share units and related per share amounts in these consolidated financial statements have been retrospectively adjusted to reflect the share consolidation. Excellon is domiciled in Canada and incorporated under the laws of the province of Ontario. The address of its registered office is 10 King Street East, Suite 200, Toronto, Ontario, M5C 1C3, Canada. These consolidated financial statements were approved by the Board of Directors on March 16, 2021. |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of associates [abstract] | |
Basis of Presentation | 2. BASIS OF PRESENTATION These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). The consolidated financial statements have been prepared under the historical cost method, except for certain financial instruments measured at fair value. The accounting policies set out below were consistently applied to all periods presented, except for the adoption of new accounting standards and accounting policies disclosed in Note 4. These consolidated financial statements are prepared on a going concern basis, which assumes that the Company will continue in operation for the foreseeable future and will be able to realize its assets and discharge its liabilities in the normal course of business. The Company applies judgment in assessing the future impact of COVID-19 on its business and operations, future commodity prices, and continued access to debt and/or equity financing. Management anticipates that the Company will have sufficient cash resources to fund the planned expenditures and discharge its liabilities in the normal course of operations for at least twelve months from the date of the reporting period. |
Use of Estimates and Judgments
Use of Estimates and Judgments | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of changes in accounting estimates [abstract] | |
Use of Estimates and Judgments | 3. USE OF ESTIMATES AND JUDGMENTS Estimates are continuously evaluated and are based on management’s experience and expectations of future events that are believed to be reasonable under the circumstances. However, actual outcomes can differ from these estimates. The preparation of the consolidated financial statements requires management to make estimates and judgments that may have a significant impact on the consolidated financial statements. Critical judgments exercised in applying accounting policies and key sources of estimation uncertainty that have the most significant effect on the amounts recognized in the consolidated financial statements are as follows: ● Indicators of impairment ● Decommissioning and site rehabilitation provision ● Determination of reserves and resources ● Income taxes and recovery of deferred tax assets Uncertainties exist with respect to the interpretation of tax regulations. The Company establishes provisions for tax liabilities that are uncertain as to their amount and the probability of their occurrence. The amount of such provisions is based on various factors, such as experience with previous tax audits, differing legal interpretations by the taxable entity and the responsible tax authority. The final resolution of some of these items may give rise to a material change in the amount of the income tax expense recorded in the consolidated statement of comprehensive income (loss) and related tax payments. ● Convertible debentures - |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of voluntary change in accounting policy [abstract] | |
Significant Accounting Policies | 4. SIGNIFICANT ACCOUNTING POLICIES The accounting policies set out below have been applied consistently to all periods presented in these consolidated financial statements. (a) Consolidation i. Subsidiaries - are entities controlled by the Company where control is achieved when the Company has the power to govern the financial and operating policies of the entity. The Company owns directly and indirectly 100% of all the subsidiaries. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. The accounting policies of subsidiaries have been changed when necessary to align them with the policies adopted by the Company. With regards to the acquisition of Otis (Note 5), the Company adopted the definition of a “business” in line with the new guidance as issued in IFRS 3 (Revised) Business Combinations ii. Transactions eliminated on consolidation - intercompany transactions, balances, income and expenses are eliminated in preparing the consolidated financial statements. (b) Foreign currency transactions and translation i. Transactions and balances - foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the date of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the Company’s consolidated statements of comprehensive income (loss). All foreign exchange gains and losses are presented in the consolidated statement of comprehensive income (loss) within Other income/expense. ii. Translation - the results and financial position of all the Company entities that have a functional currency different from the presentation currency are translated into the presentation currency as follows: ● Assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet; ● Income and expenses for each statement of comprehensive income (loss) are translated at average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the rate on the dates of the transactions); and ● All resulting exchange differences have been recognized in other comprehensive income (loss) and accumulated as a separate component of equity. (c) Cash and Cash equivalents Cash and cash equivalents consist of cash on hand, bank deposits and highly liquid short-term investments with a maturity date of three months or less when acquired. (d) Financial instruments Financial assets Routine purchases and sales of financial assets are recognized on trade date, the date on which the Company commits to purchase or sell the asset. At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in the consolidated statement of comprehensive income (loss). Subsequent measurement of debt instruments depends on the classification of financial assets determined at initial recognition. Classification of financial assets depends on the entity’s business model for managing the financial assets and the contractual terms of the cash flows. The Company classifies and provides for financial assets as follows: ● Financial assets at fair value through profit or loss ● Financial assets at fair value through other comprehensive income ● Financial assets at amortized cost At each balance sheet date, the Company assesses the expected credit losses associated with its financial assets carried at amortized cost and fair value through other comprehensive income. The impairment methodology applied depends on whether there has been a significant increase in credit risk. When sold or impaired, any accumulated fair value adjustments previously recognized are included in the consolidated statement of comprehensive income (loss). For trade receivables, the Company applies the simplified approach permitted by IFRS 9, which requires expected lifetime losses to be recognized from initial recognition of the receivables. Financial assets are derecognized when the rights to receive cash flows from the financial assets have expired or have been transferred and the Company has transferred substantially all the risks and rewards of ownership. Derivative financial instruments The Company may hold derivative financial instruments to hedge its risk exposure to fluctuations in commodity prices, including the Company’s final product, consumables and other currencies compared to the USD. Derivative financial instruments are measured at fair value at each reporting period. Non-hedged derivative financial instruments All derivative instruments not designated in a hedge relationship that qualifies for hedge accounting are classified as financial instruments at fair value through profit or loss. Changes in fair value of non-hedged derivative financial instruments are included in the consolidated statement of comprehensive income (loss) as non-hedged derivative gains or losses. Financial liabilities Transaction costs associated with financial instruments, carried at fair value through profit or loss, are expensed as incurred, while transaction costs associated with all other financial instruments are included in the initial carrying amount of the asset or the liability. The amortization of debt issue costs is calculated using the effective interest method. (e) Inventories Silver-lead and silver-zinc in concentrate and ore stockpiles are physically measured or estimated and valued at the lower of cost or net realizable value. Net realizable value is the estimated selling price, less estimated costs of completion and costs of selling final product. Cost is determined by the weighted average method and comprises direct purchase costs and an appropriate portion of fixed and variable overhead costs, including amortization, incurred in converting materials into finished goods. The cost of production is allocated to joint products using a ratio of weighted average volume by product at each month end. Separately identifiable costs of conversion of each metal concentrate are specifically allocated. Materials and supplies are valued at the lower of cost or net realizable value. Any provision for obsolescence is determined by reference to specific items. A regular review is undertaken to determine the extent of any provision for obsolescence by comparing items to their replacement costs. When inventories have been written down to net realizable value, the Company makes a new assessment of net realizable value in each subsequent period. If the circumstances that caused the write-down no longer exist, the remaining amount of the write-down is reversed. (f) Property, plant and equipment Property, plant and equipment are carried at cost less accumulated amortization and any impairment charges. When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate assets (major components) of property, plant and equipment. The cost of replacing a part of an item of property, plant and equipment is recognized in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Company, and its cost can be measured reliably. The carrying amount of the replaced part is derecognized. The costs of the day-to-day servicing of property, plant and equipment are recognized in the consolidated statement of comprehensive income (loss) as incurred. Amortization is recorded over the useful life of the asset, or over the remaining life of the mine, if shorter, as follows: ● Mining properties – on a units-of-production basis; ● Associated mining equipment – 3-10 years on a straight-line basis; ● Buildings – 20 years on a straight-line basis; and ● Processing equipment – 4-8 years on a straight-line basis. Amortization charges on a unit-of-production basis are based on measured and indicated mineral resources. The method of amortization, estimates of residual values and useful lives are reassessed at least at each financial year-end, and any change in estimate is taken into account in the determination of future amortization charges. (g) Exploration and evaluation expenditures Acquisitions of mineral rights are capitalized. Subsequent exploration and evaluation costs related to an area of interest are expensed as incurred on a project-by-project basis. When a licence is relinquished or a project is abandoned, the related costs are immediately recognized in the consolidated statement of comprehensive income (loss). Exploration properties that contain estimated Proven and Probable Mineral Reserves, but for which a development decision has not yet been made, are subject to periodic review for impairment when events or changes in circumstances indicate the project’s carrying value may not be recoverable. Exploration and evaluation assets are reclassified to “Mine Properties - Mines under construction” when the technical feasibility and commercial viability of extracting the Mineral Resources or Mineral Reserves are demonstrable and construction has commenced or a decision to construct has been made. Exploration and evaluation assets are assessed for impairment before reclassification to “Mines under construction”, and the impairment loss, if any, is recognized in the consolidated statement of comprehensive income (loss). (h) Development expenditure Development expenditures incurred by or on behalf of the Company are accumulated separately for each property in which an indicated resource has been identified. Such expenditures comprise costs directly attributable to the construction of a mine and the related infrastructure. General and administrative costs are allocated to a development asset only to the extent that those costs can be related directly to development activities in the relevant area of interest. Once a development decision has been taken, the development expenditure is classified under property, plant and equipment as ‘‘development properties’’. A development property is reclassified as a “mining property’’ at the end of the commissioning phase, when the mine is capable of operating in the manner intended by management. No amortization is recognized in respect of development properties until they are reclassified as “mining properties’’. Each development property is tested for impairment in accordance with the Company’s impairment policy. (i) Mining properties When further development expenditures are incurred in respect of a mining property after the commencement of production, such expenditures are carried forward as part of the mining property when it is probable that additional future economic benefits associated with the expenditure will flow to the consolidated entity. Otherwise, such expenditures are classified as a cost of production. Amortization is charged using the units-of-production method. The units-of-production basis results in an amortization charge proportional to the depletion of measured and indicated resources. Mine properties are tested for impairment in accordance with the Company’s impairment policy. (j) Decommissioning and site rehabilitation provision The Company records the present value of estimated costs of legal and constructive obligations required to restore operating locations in the period in which the obligation is incurred. The nature of these restoration activities includes dismantling and removing structures, rehabilitating mines and tailings dams, dismantling operating facilities, closure of plant and waste sites, and restoration, reclamation and re-vegetation of affected areas. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a discount rate that reflects the current market assessments of the time value of money. When the liability is initially recognized, the present value of the estimated cost is capitalised by increasing the carrying amount of the related mining asset. The periodic unwinding of the discount applied in establishing the net present value of provisions due to the passage of time is recognized in the consolidated statement of comprehensive income (loss) as a finance cost. Changes in the rehabilitation estimate attributable to development will be recognized as additions or charges to the corresponding assets and rehabilitation liability when they occur. (k) Mineral Rights Mineral rights are carried at cost and amortized using a units-of-production method based on the resources that exist in the location that has access to such rights. Methods of amortization and estimated useful lives are reassessed annually and any change in estimate is taken into account in the determination of future amortization charges. (l) Impairment i. Financial assets - a financial asset not carried at fair value through profit or loss is assessed at each reporting date to determine whether there is objective evidence that it is impaired. A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event had a negative effect on the estimated future cash flows of that asset that can be estimated reliably. ii. Non-financial assets - the carrying amounts of the Company’s non-financial assets, primarily property, plant and equipment and mineral rights, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset or cash generating unit (CGU) recoverable amount is estimated. Recoverability of assets or CGU, the mine operation, to be held and used are measured by a comparison of the carrying value of the asset to the recoverable amount, which is the higher of value in use and fair value less costs to sell. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets. An impairment loss is recognized if the carrying amount of an asset or the CGU exceeds its estimated recoverable amount. Impairment losses are recognized in the consolidated statement of comprehensive income (loss). Impairment losses recognized in respect of the CGU are allocated to reduce the carrying amount of long-lived assets in the unit on a pro rata basis. Non-financial assets that have been impaired in prior periods are tested for possible reversal of impairment whenever events or changes in circumstances indicate that the impairment has reversed. If the impairment has reversed, the carrying amount of the asset is increased to its recoverable amount but not beyond the carrying amount that would have been determined had no impairment loss been recognized for the asset in the prior periods. A reversal of an impairment loss is recognized into earnings immediately. (m) Future Termination Benefits Employees of the Company’s Mexican mines are entitled by local labor laws to employee departure indemnities, generally based on each employee’s length of service, employment category and remuneration. The cost of these retirement benefits is determined using the projected unit credit method. Current service cost and any past service cost are recognized in the same line item in the consolidated statement of comprehensive income (loss) as the related compensation cost. Changes in actuarial assumptions used to determine the accrued benefit obligation are recognized in full in the period in which they occur, in the the consolidated statement of comprehensive income (loss). The most significant assumptions used in accounting for post employment benefits are the discount rate, the mortality and the life of mine. The discount rate is used to determine the present value of future liabilities. Each year, the unwinding of the discount on those liabilities is charged to the Company’s consolidated statement of comprehensive income (loss) as the interest cost. The life of mine and mortality assumptions are used to project the future stream of benefit payments, which is then discounted to arrive at a present value of liabilities. The values attributed to the liabilities are assessed in accordance with the advice of independent qualified actuaries. (n) Current and deferred income tax The tax expense for the period is comprised of current and deferred tax. Tax is recognized in the consolidated statement of comprehensive income (loss), except to the extent that it relates to items recognized in other comprehensive income (loss) or directly in equity. The current income tax charge is calculated on the basis of the tax laws substantively enacted at the balance sheet date in the countries where the Company’s entities operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. Where appropriate, the Company establishes provisions expected to be paid to the tax authorities. Deferred income tax is recognized, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, the deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit nor loss. Deferred income tax is provided on temporary differences arising on investments in subsidiaries except in the case of a subsidiary where timing of the reversal of the temporary difference is controlled by the Company and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred income tax is determined on a non discount basis using tax rates (and laws) that have been substantively enacted by the balance sheet date and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled. Deferred income tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized. In assessing the need to recognize a deferred tax asset, management considers all available evidence including past operating results, estimates of future taxable income and the feasibility of ongoing tax planning strategies. The Company recognizes neither the deferred tax asset regarding the temporary difference on the rehabilitation liability, nor the corresponding deferred tax liability regarding the temporary difference on the rehabilitation asset. Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income taxes assets and liabilities relate to income taxes levied by the same taxation authority on either the taxable entity or different taxable entities where there is an intention to settle the balances on a net basis. i. Royalties - royalties, resource rent taxes and revenue-based taxes are accounted for under taxes when they have the characteristics of an income tax. This is considered to be the case when they are imposed under Government authority and the amount payable is based on taxable income – rather than based on quantity produced or as a percentage of revenue – after adjustment for temporary differences. For such arrangements, current and deferred tax is provided on the same basis as described above for other forms of taxation. Obligations arising from royalty arrangements that do not satisfy these criteria are recognized as current provisions and included in cost of sales. The 7.5% Mexican mining royalty is based on earnings before interest tax, depreciation and amortization (EBITDA), is treated as an income tax in accordance with IFRS, as it is based on a measure of revenue less certain specified costs. The extraordinary mining royalty of 0.5% on precious metals revenues is not considered to be an income tax in accordance with IFRS as it is based on a percentage of revenue and not taxable income. (o) Share-based payments ii. Share option plan - employees (including directors and senior executives) of the Company receive a portion of their remuneration in the form of share-based payment transactions, whereby employees render services as consideration for equity instruments (“equity-settled transactions”). In situations where equity instruments are issued to non-employees and some or all of the goods or services received by the Company, as consideration cannot be specifically identified, they are measured at fair value of the share-based payment. Otherwise, share-based payments are measured at the fair value of goods or services received. iii. Equity-settled transactions - the costs of equity-settled transactions with employees are measured by reference to the fair value at the date on which they are granted using the Black-Scholes option-pricing model. The costs of equity-settled transactions are recognized, together with a corresponding increase in equity, over the period in which the performance and/or service conditions are fulfilled, ending on the date on which the relevant employees become fully entitled to the award (“the vesting date”). The cumulative expense is recognized for equity-settled transactions at each reporting date until the vesting date reflects the Company’s best estimate of the number of equity instruments that will ultimately vest. The profit or loss charge or credit for a period represents the movement in cumulative expense recognized as at the beginning and end of that period and the corresponding amount is represented in contributed surplus. No expense is recognized for awards that do not ultimately vest. Where the terms of an equity-settled award are modified, the minimum expense recognized is the expense as if the terms had not been modified. An additional expense is recognized for any modification, which increases the total fair value of the share-based payment arrangement or is otherwise beneficial to the employee as measured at the date of modification. The dilutive effect of outstanding options is reflected as additional dilution in the computation of earnings per share. iii. Cash-settled transactions - a Deferred Share Unit (“DSU”) Plan was established for directors of the Company. The cost of the DSUs is measured initially at fair value based on the closing price of the common shares preceding the day the DSUs are granted. The Company has the option of settling the DSUs in cash or common shares either from treasury or from market purchases. Accordingly, the expense is recorded in the consolidated statement of comprehensive income (loss) as share-based payments and credited to equity under contributed surplus. A Restricted Share Unit (“RSU”) Plan was established for directors, certain employees and eligible contractors of the Company. The cost of the RSUs is measured initially at fair value on the authorization date based on the market price of the common shares preceding the day the RSUs are authorized by the Board of Directors. The Company has the option of settling the RSUs in cash or common shares either from treasury or from market purchases. Accordingly, the expense is recorded in the consolidated statement of comprehensive income (loss) in share-based payments and credited to equity under contributed surplus. (p) Revenue recognition Company policy requires all production to be sold under contract. Revenue is only recognized on individual concentrate shipments when following conditions are satisfied: ● Contracts with customers have been identified ● Performance obligations in the contract have been identified ● Transaction price is determined ● Transaction price is allocated to the performance obligations in the contract ● Performance obligation in the contract is satisfied Satisfaction of these conditions depends on the terms of trade with individual customers. Generally, control over goods are considered to have transferred to the customer upon delivery. Concentrate products are sold on a ‘provisional pricing’ basis where the sale price received by the group is subject to a final adjustment at the end of a period that may be up to 90 days after delivery to the customer. The final sale price is based on the market price on the quotational date in the contract of sale. Sales are initially recognized when the revenue recognition criteria have been satisfied, using market prices at that date. At each reporting date the provisionally priced shipment is marked to market based on the forward selling price for the quotational point specified in the contract until that point is reached. Revenue is only recognized on this basis where the forward selling price can be reliably measured. Many of the Company’s sales are subject to an adjustment based on confirmation of the technical specifications of each shipment by the customer. In such cases, revenue is recognized based on the group’s best estimate of the technical specifications at the time of shipment, and any subsequent adjustments are recorded against revenue when final specifications are confirmed and agreed to by both parties, as per the offtake agreement terms. (q) Earnings per share Basic earnings per share (“EPS”) is calculated by dividing the net income (loss) for the period attributable to equity owners of Excellon by the weighted average number of common shares outstanding during the period. Diluted EPS is calculated by adjusting the weighted average number of common shares outstanding for dilutive instruments. The number of shares included with respect to options, warrants and similar instruments is computed using the treasury stock method. Excellon’s potentially dilutive common shares comprise stock options granted to employees and warrants. (r) Segment reporting The Company has two reportable segments based on a geographical basis. During the year, the Company operated in Mexico and Canada. The Mexican operation is principally engaged in the acquisition, exploration, evaluation, and development of mining properties. The Platosa property is in commercial production and is earning revenue through the sale of silver-lead concentrate and silver-zinc concentrate. The Canadian operations are principally engaged in the financing, acquisition, exploration and evaluation of mining properties. Segments are reviewed by the CEO, who is considered to be the chief operating decision maker. (s) Leases At inception of a contract, the Company assesses whether a contract is, or contains, a lease based on whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured based on the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received. The assets are amortized to the earlier of the end of the useful life of the right-of-use asset or the lease term using the straight-line method as this most closely reflects the expected pattern of consumption of the future economic benefits. In addition, the right-of-use assets may be periodically reduced by impairment losses, if any, and adjusted for certain re-measurements of the lease liability. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate. Lease payments include fixed payments, and variable payments that are based on an index or a rate. Cash payments for the principal portion of the lease liability are presented within the financing activities and the interest portion of the lease liability is presented within the operating activities of the statement of cash flows. Short-term lease payments and variable lease payments not included in the measurement of the lease liability are presented within the operating activities of the statement of cash flows. The lease liability is measured at amortized cost using the effective interest method. It is re-measured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Company’s estimate of the amount expected to be payable under a residual value guarantee, or if the Company changes its assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is re-measured in this way, a corresponding adjustment is either made to the carrying amount of the right-of-use asset or is recorded in the consolidated statement of comprehensive income (loss) if the carrying amount of the right-of-use asset has been reduced to zero. The Company has lease arrangements that include both lease and non-lease components. The Company accounts for each separate lease component and its associated non-lease components as a single lease component for all its asset classes. Additionally, for certain lease arrangements that involve leases of similar assets, the Company applies a portfolio approach to effectively account for the underlying right-of-use ROU assets and lease liabilities. (t) Farm-out accounting Mineral rights held by the Company which are subject to a farm-out arrangement, where a farmee incurs certain expenditures on a property to earn an interest in that property, are accounted as follows: ● the Company does not record exploration expenditures made by the farmee on the property; ● any cash consideration and the initial fair value of any shares received is credited against the costs previously capitalized to the mineral rights; ● the change in fair value of any shares received by Company as part of a farm-out arrangement are recorded in the consolidated statement of comprehensive income (loss); and ● the Company uses the carrying value of the mineral rights before the farm-out arrangement as the carrying value for the portion of the interest retained (if any). (u) Accounting standards issued but not yet applied The Company has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective. Amendments to IAS 16 Property, Plant and Equipment: Proceeds before Intended Use In May 2020, the IASB issued Property, Plant and Equipment—Proceeds before Intended Use, which made amendments to IAS 16 Property, Plant and Equipment. The amendments prohibit a company from deducting from the cost of property, plant and equipment amounts received from selling items produced while the company is preparing the asset for its intended use (i.e. pre-production revenue). Instead, a company will recognize such sales proceeds and related cost in the consolidated statement of comprehensive income (loss). The amendment is effective for annual periods beginning on or after January 1, 2022. |
Acquisition of Otis Gold Corp.
Acquisition of Otis Gold Corp. | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of detailed information about business combination [abstract] | |
Acquisition of Otis Gold Corp. | 5. ACQUISITION OF OTIS GOLD CORP. On April 22, 2020, the Company completed a plan of arrangement to acquire Otis Gold Corp. (“Otis”). Otis shareholders received 0.046 of a common share of the Company for each Otis common share held (the “Exchange Ratio”), resulting in the issuance of 8,130,630 Excellon common shares. The acquisition also resulted in outstanding Otis stock options and warrants being converted to Excellon stock options and warrants at the Exchange Ratio, resulting in the issuance of 531,895 Excellon stock options (“Replacement Options”) and 305,060 Excellon warrants exercisable at C$3.30 until March 29, 2022 (“Replacement Warrants”) (collectively, the “Transaction”). On closing of the Transaction, Otis assets consisted primarily of mineral properties. As Otis did not have processes capable of generating outputs, Otis did not meet the definition of a business in accordance with IFRS 3 Business Combinations The purchase price has been determined and allocated as follows: April 22, 2020 $ Purchase price Common shares of Excellon issued 16,370 Fair value of Excellon options issued 361 Fair value of Excellon warrants issued 233 Transaction costs 1,723 18,687 Assets acquired Cash 51 Tax receivables, prepaid expenses and other assets 24 Property, plant and equipment 35 Reclamation deposits 53 Right of use assets 48 Mineral rights - Oakley Project 5,332 Mineral rights - Kilgore Gold Project 13,711 Liabilities Assumed Trade payables (166 ) Convertible loan from Excellon (353 ) Current and long-term lease liabilities (48 ) 18,687 Upon completion of the Transaction, the C$500 loan owed by Otis to Excellon became an intercompany loan and was eliminated on consolidation. Included in transaction costs is C$856 relating to Otis’ transaction costs incurred, assumed, and paid by Excellon after closing the Transaction. The fair value of the common shares issued amounted to $16,370 based on the trading price of the Company’s shares on the issuance date (C$2.85). The fair value of the Replacement Options and Replacement Warrants was determined using the Black-Scholes pricing model with the following assumptions: Stock Options Warrants Exercise price C$1.10 - C$7.65 C$3.30 Expected life (years) 0.23 - 4.00 1.9 Volatility 72.9% - 87.9 % 79.1 % Risk-free rate 0.66% - 0.75 % 0.66 % |
Marketable Securities and Warra
Marketable Securities and Warrants | 12 Months Ended |
Dec. 31, 2020 | |
Current and long-term lease liabilities. | |
Marketable Securities And Warrants | 6. MARKETABLE SECURITIES AND WARRANTS In 2018, the Company entered into an option agreement to farm-out its Beschefer property to Wallbridge Mining Company Ltd. (“Wallbridge”), receiving an initial consideration of 500,000 Wallbridge Shares (TSX:WM). On March 17, 2020, the Company entered into an amended agreement to receive an additional 3,000,000 Wallbridge Shares and 500,000 Warrants to relinquish all interest in the Beschefer Property (Note 11). The Warrants have a strike price of C$1.00 and a term of five years from the date of issuance. An unrealized gain on revaluation of the Wallbridge Shares and Warrants of $712 was recorded in other income for the year ended December 31, 2020 (2019: gain of $289). The fair value of the Warrants was determined using a Black-Scholes model, risk free rate of 0.33%, Wallbridge share price of C$0.78 and volatility of 107% at December 31, 2020. 2020 2019 $ $ Marketable securities at fair value 2,138 348 Warrants at fair value 212 - 2,350 348 |
Vat Recoverable
Vat Recoverable | 12 Months Ended |
Dec. 31, 2020 | |
Vat Recoverable | |
Vat Recoverable | 7. VAT RECOVERABLE VAT (value added tax) recoverable consist of the total VAT credits recoverable by each of the Company’s Mexican subsidiaries. In Mexico, VAT credits can only be applied to VAT payable specific to each entity and are non-transferable. The Company’s VAT payable position is reflected separately on the consolidated statement of financial position. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Inventories Abstract | |
Inventories | 8. INVENTORIES 2020 2019 $ $ Ore stockpiles 463 186 Concentrate inventory 4 588 Production spare parts 2,441 2,402 Obsolescence Provision - spare parts (523 ) (561 ) 2,385 2,615 |
Other Current Assets
Other Current Assets | 12 Months Ended |
Dec. 31, 2020 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Other Current Assets | 9. OTHER CURRENT ASSETS 2020 2019 $ $ Income taxes recoverable 145 415 Prepaid expenses 340 737 Restricted cash 765 - Forward foreign exchange contracts (1) 21 432 Others 52 15 1,323 1,599 (1) Comparative period reclassified from other payables to match current-period other current asset classification. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Property, Plant And Equipment | 10. PROPERTY, PLANT AND EQUIPMENT Assets Right Mining Mining Processing under of use properties equipment equipment construction assets Total $ $ $ $ $ $ At January 1, 2019 Cost 29,212 15,938 5,756 1,368 - 52,274 Accumulated amortization (17,130 ) (8,860 ) (4,537 ) - - (30,527 ) 12,082 7,078 1,219 1,368 - 21,747 Year ended December 31, 2019 Opening net book value 12,082 7,078 1,219 1,368 - 21,747 Additions 1,202 847 111 3,621 1,006 6,787 Reclassification 33 (640 ) 33 (66 ) 640 - Depletion and amortization (2,257 ) (1,955 ) (291 ) - (228 ) (4,731 ) Exchange differences 516 290 52 148 9 1,015 Closing net book value 11,576 5,620 1,124 5,071 1,427 24,818 At December 31, 2019 Cost 31,774 16,887 6,160 5,071 1,646 61,538 Accumulated amortization (20,198 ) (11,267 ) (5,036 ) - (219 ) (36,720 ) 11,576 5,620 1,124 5,071 1,427 24,818 Year ended December 31, 2020 Opening net book value 11,576 5,620 1,124 5,071 1,427 24,818 Additions (1) 1,416 1,873 673 3,658 48 7,668 Reclassification 4,046 3,333 - (7,325 ) (54 ) - Depletion and amortization (2,191 ) (2,101 ) (298 ) - (202 ) (4,792 ) Exchange differences (2) (377 ) 164 (503 ) (882 ) (266 ) (1,864 ) Closing net book value 14,470 8,889 996 522 953 25,830 At December 31, 2020 Cost 36,400 21,576 6,075 522 1,640 66,213 Accumulated amortization (21,930 ) (12,687 ) (5,079 ) - (687 ) (40,383 ) 14,470 8,889 996 522 953 25,830 (1) During the year ended December 31, 2020, the Company incurred $3,658 in sustaining capital expenditures initially recorded as assets under construction, primarily related to the expansion of the dewatering system at the Platosa Mine and a raise of the tailings management facility at the Miguel Auza processing facility. All assets that have been commissioned are reclassified to their associated asset class. (2) Unrealized foreign exchange losses on translation of Mexican peso assets at the period-end exchange rate. |
Mineral Rights
Mineral Rights | 12 Months Ended |
Dec. 31, 2020 | |
Extractive Industries [Abstract] | |
Mineral Rights | 11. MINERAL RIGHTS Platosa Beschefer Silver City Kilgore Oakley (Mexico) (Canada) (1) (Germany) (2) (Idaho) (3) (Idaho) (4) Total $ $ $ $ $ $ At January 1, 2019 Cost 3,621 1,466 - - - 5,087 Accumulated amortization (2,460 ) - - - - (2,460 ) 1,161 1,466 - - - 2,627 Year ended December 31, 2019 Opening net book value 1,161 1,466 - - - 2,627 Additions - - 245 - - 245 Disposals - (104 ) - - - (104 ) Depletion and amortization (210 ) - - - - (210 ) Exchange differences 52 66 - - - 118 Closing net book value 1,003 1,428 245 - - 2,676 At December 31, 2019 Cost 3,785 1,428 245 - - 5,458 Accumulated amortization (2,782 ) - - - - (2,782 ) 1,003 1,428 245 - - 2,676 Year ended December 31, 2020 Opening net book value 1,003 1,428 245 - - 2,676 Acquisitions - - 317 13,711 5,332 19,360 Additions - - - 45 32 77 Disposals - (1,348 ) - - - (1,348 ) Depletion and amortization (178 ) - - - - (178 ) Exchange differences (21 ) (80 ) 26 - - (76 ) Closing net book value 804 - 587 13,756 5,364 20,511 At December 31, 2020 Cost 3,721 - 587 13,756 5,364 23,428 Accumulated amortization (2,917 ) - - - - (2,917 ) 804 - 587 13,756 5,364 20,511 (1) On March 17, 2020, the Company entered into an agreement with Wallbridge (Note 6) in respect of the Beschefer Option Agreement, whereby the amended Option payments were deemed fully satisfied through the issuance of a total of 3,500,000 Wallbridge Shares and 500,000 warrants to purchase Wallbridge Shares at $1.00 for a period of five years from the date of issuance (collectively, the “Wallbridge Consideration”). In accordance with the Company’s farm-out accounting policy, the initial fair value of the Wallbridge Consideration was credited to the Beschefer Mineral Rights and the loss on disposal ($188) was recorded in the consolidated statement of comprehensive income (loss) for the twelve months ended December 31, 2020. (2) On September 24, 2019 the Company signed an option agreement (the “Globex Agreement”) with Globex Mining Enterprises Inc. (“Globex”) to acquire a 100% interest in the Braunsdorf exploration license for the Silver City Project in Saxony, Germany, pursuant to which the Company agreed to pay total aggregate consideration of C$500 in cash and issue common shares valued at C$1,600 over a period of three years. Upon completion of the payments and common share issuances the Company will grant Globex a gross metals royalty of 3% for precious metals and 2.5% for other metals, both of which may be reduced by 1% upon a payment of $1,500. Additional one-time payments of C$300 and C$700 will be made by the Company following any future announcement of a maiden resource on the property and upon achievement of commercial production from the project, respectively. The first issuance of 45,367 common shares (valued at C$225) and the first cash payment (C$100) were made on the effective date of the Globex Agreement and recorded as an addition to mineral rights ($245). On September 21, 2020, the second issuance of 65,657 common shares (valued at C$325) and the second cash payment (C$100) were made and recorded as an addition to mineral rights ($317). (3) On April 22, 2020, the Company acquired the Kilgore Gold Project as part of the Otis acquisition (Note 5). The Company has a 100% interest in the Kilgore Gold property located in Clark County, Idaho, which consisted of 614 federal lode mining claims unencumbered by any underlying royalties. In Q4 2020, the Company staked 175 new claims expanding the Kilgore property by 28%. (4) On April 22, 2020, the Company acquired the Oakley Project as part of the Otis acquisition (Note 5). The Oakley Project includes Blue Hill Creek, Matrix Creek, Cold Creek and other properties in Idaho, USA: ● Blue Hill Creek (“BHC”) - The Company has a 100% interest in the Blue Hill Creek property located in Cassia County, Idaho; the property consists of 44 unpatented federal lode mining claims and an adjacent 80 acre Idaho state lease, subject to a net smelter returns royalty (“NSR”) of 2% on production of gold from BHC. ● Matrix Creek - The Company has a 100% interest in the Matrix Creek property, located in Cassia County, Idaho; the property consists of 61 unpatented federal lode mining claims and a 320 acre mineral lease, subject to an NSR of 2% on production of gold from Matrix Creek. The 2.0% NSR at BHC and Matrix Creek can be purchased for a total of $2,000. ● Cold Creek and other properties - The Company has a 100% interest in the Cold Creek property located in Cassia County, Idaho, which consists of 85 unpatented federal lode mining claims, and 32 other unpatented federal lode mining claims, all located in Cassia County, Idaho and located within the area known as the Oakley Project. On February 26, 2020, Otis entered into a definitive option agreement with Centerra Gold Inc. (“Centerra”) whereby Centerra may earn up to a 70% interest in the Oakley Project in exchange for total exploration expenditures of $7,000 and cash payments of $550 over a six year period. Details are as follows: ● Centerra can earn a 51% interest in Oakley (the “First Option”) by incurring $4,500 in exploration expenditures and by making cash payments of $250 over a three-year period as follows: o Cash payment of $75 (received by Otis) on signing and commitment to spend a minimum of $500 on exploration expenditures in Year One; o Cash payment of $75 (received in February 2021) and $1,500 in exploration expenditures in Year Two; and o Cash payment of $100 and $2,500 in exploration expenditures in Year Three. ● Centerra will then have an option to acquire a further 19% of the Oakley Project, for a total of 70% (the “Second Option”), by incurring an additional $3,000 in exploration expenditures and making a cash payment of $300 over three years. ● During the term of the Oakley Agreement, Centerra will be the Operator of the project. Excellon will act as Project Manager and will earn 10% of the approved exploration expenditures for technical oversight and project management. ● Subsequent to either the First Option or the Second Option, at Centerra’s option, the parties shall form a joint venture and fund expenditures going forward on a pro rata basis. ● Should Excellon’s interest fall below 10% during the joint venture, that interest will automatically convert to a 2% NSR that is not subject to a buyback provision. As at December 31, 2020, Centerra has met the minimum qualifying exploration expenditures on the Oakley Project. In Q4 2020, the Company staked 125 new claims expanding the Oakley property by 56%. |
Trade and Other Payables
Trade and Other Payables | 12 Months Ended |
Dec. 31, 2020 | |
Trade And Other Payables | |
Trade And Other Payables | 12. TRADE AND OTHER PAYABLES The Company’s trade payables comprise accounts payable and accruals as at December 31, 2020. Accounts payable make up $4,252 of the $8,172 balance (as at December 31, 2019 – $4,672 of the $7,132 balance), of which $2,429 relate to operations in Mexico. Accruals and other payables of $3,920 (as at December 31, 2019 – $2,460) include administrative and operating costs, accounting and legal services and statutory payroll withholding taxes. |
Lease Obligations
Lease Obligations | 12 Months Ended |
Dec. 31, 2020 | |
Presentation of leases for lessee [abstract] | |
Lease Obligations | 13. LEASE OBLIGATIONS 2020 2019 $ $ Total discounted lease obligations 830 1,277 Less: current portion of lease obligations (405 ) (489 ) Non-current of lease obligations 425 788 The Company leases select mining equipment, office and warehouse space. All leases have fixed interest rates and security is provided by the asset being leased. Interest expense on the lease liabilities was $69 for the year ended December 31, 2020 (December 31, 2019 - $30). Details of the lease payments are as follows: 2020 2019 $ $ Within 1 year 448 577 Between 1 and 5 years 455 940 Total undiscounted lease obligations 903 1,516 |
Credit Facility
Credit Facility | 12 Months Ended |
Dec. 31, 2020 | |
Credit Facility Abstract | |
Credit Facility | 14. CREDIT FACILITY On March 16, 2020, the Company closed a US$6-million bridge-loan credit facility (the “Credit Facility”) with Sprott Private Resource Lending II (Collector), LP (“Sprott Lending”). The Credit Facility carried interest at 10% per annum, compounded and payable monthly, and was due and payable in full on or before September 14, 2020. In consideration for the Facility, Excellon issued 107,291 common shares to Sprott Lending which were recorded in the consolidated statement of comprehensive income (loss) as finance costs. The Company repaid the Credit Facility on August 4, 2020 on the closing of the Convertible Debenture financing (Note 16). |
Provisions
Provisions | 12 Months Ended |
Dec. 31, 2020 | |
Provisions [abstract] | |
Provisions | 15. PROVISIONS Post-retirement Rehabilitation benefits (1) provision (2) Total $ $ $ Year ended December 31, 2019 Opening balance 684 1,532 2,216 Change in estimate (95 ) - (95 ) Accretion for the period 62 26 88 Exchange differences (34 ) 68 34 Closing Balance 617 1,626 2,243 Year ended December 31, 2020 Opening balance 617 1,626 2,243 Termination payments (113 ) - (113 ) Change in estimate 233 - 233 Accretion for the period 40 61 101 Exchange differences (125 ) (131 ) (256 ) Closing Balance 652 1,556 2,208 (1) Post-retirement benefits: The Company provides post-retirement benefits supplements as well as leaving indemnities to employees at the Mexican operations. Under Mexican labour law, the Company provides statutorily mandated severance benefits to its employees terminated under certain circumstances. Key financial assumptions used in the above estimate include an annual discount rate of 4.86% (December 31, 2019 – 6.8%), annual salary rate increase of 3.75% (December 31, 2019 – 3.75%) and minimum wage increase rate of 5.31% (December 31, 2019 – 5.31%) and the life of mine of approximately four years. During the year, the Company paid $453 in termination benefits, of which $113 was recorded against post-retirement benefits and $340 was recorded in the consolidated statement of comprehensive income (loss) for period ended December 31, 2020. (2) Rehabilitation provision: Key financial assumptions used in the above estimate include an annual discount rate of 4.73% (December 31, 2019 – 4.4%), Mexican inflation rate and the life of mine of approximately four years. The total undiscounted amount of estimated cash flows required to settle the Company’s obligations is $1,746 of which $892 relates to the Platosa mine and $854 relates to the Miguel Auza processing facility. |
Convertible Debentures
Convertible Debentures | 12 Months Ended |
Dec. 31, 2020 | |
Convertible Debentures Abstract | |
Convertible Debentures | 16. CONVERTIBLE DEBENTURES On July 30, 2020, the Company closed the private placement (the “Financing”) of secured convertible debentures (the “Debentures”) for total proceeds of C$17.91 million. The Debentures have a term of 36 months and are convertible into common shares of the Company prior to maturity at a conversion price of C$5.30 per common share. The Debentures bear interest at an annual rate of 5.75%, payable in cash semi-annually. Interest on the Debentures may alternatively be paid in common shares of the Company at the Company’s option based on the 10-day volume-weighted average price of the common shares prior to the payment date and an effective annual rate of 10%. The Debentures are secured against the Company’s assets in Mexico. On or after July 30, 2022 and prior to maturity, the Company may accelerate the conversion of the entire issuance of Debentures, provided that the 20-day VWAP of the common shares on or after such 24-month anniversary is equal to greater than C$12.50. The purchasers of the Debentures were also issued 1,006,542 common share purchase warrants (“Warrants”), with an exercise price of C$5.75 and an expiry date of July 30, 2023. In connection with the Financing, the Company granted 136,887 common share purchase warrants (the “Broker Warrants”), with an exercise price of C$5.75 and an expiry date of July 30, 2023. Net proceeds from the Debentures were C$17.1 million ($12.8 million) after cash transaction costs of C$768 ($572) and were allocated between debt and equity components. On initial recognition, the fair value of the debt of C$8,459 ($6,298) was estimated using a coupled Black-Scholes model based on an expected term of 36 months and a coupon rate of 5.75%. The residual portion of C$6,382 ($4,751) represented the value of the conversion option and other features of the Debentures, and was recognized in equity net of a deferred tax recovery of C$2,301 ($1,713) related to a taxable temporary difference on this equity component. The debt component is recorded at amortized cost and is accreted to the principal amount over the term of the Debentures. The Company recorded interest expense of C$1,594 ($1,222) for the period from closing to December 31, 2020. The Company elected to pay the first interest payment in common shares valued at C$754 ($588) on December 31, 2020. 2020 $ CAD $ USD Proceeds on issuance of Debenture 17,910 13,334 Transaction costs paid (768 ) (572 ) Portion allocated to equity - conversion option and other features (8,683 ) (6,464 ) Interest expense 1,594 1,222 Value of shares issued to settle interest payable (754 ) (588 ) Exchange differences - 351 Balance at December 31, 2020 9,299 7,283 |
Share Capital
Share Capital | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of classes of share capital [abstract] | |
Share Capital | 17. SHARE CAPITAL The Company’s authorized share capital consists of an unlimited number of common shares. Number of shares (000’s) $ Year ended December 31, 2019 Opening balance 19,841 106,786 Shares issued on exercise of stock options 10 38 Shares issued on exercise of RSUs and DSUs 40 245 Shares issued on exercise of warrants 370 699 Shares issued from bought deal (1) 2,185 6,903 Value of shares issued in asset acquisition (2) 45 169 Balance at December 31, 2019 22,491 114,840 Year ended December 31, 2020 Opening balance 22,491 114,840 Shares issued on exercise of stock options 261 602 Shares issued on exercise of RSUs and DSUs 382 1,627 Shares issued on exercise of warrants 2 8 Shares issued on acquisition of Otis Gold Corp (3) 8,131 16,370 Shares issued as part of Credit Facility (4) 107 180 Shares issued to settle payables (5) 671 1,738 Value of shares issued in asset acquisition (2) 66 246 Shares issued to settle interest on convertible debentures (6) 228 588 Balance at December 31, 2020 32,339 136,199 (1) On August 27, 2019 the Company completed a public equity financing (the “2019 Bought Deal”) of 2,185,000 units (“2019 Public Units”) at a price of C$5.30 per Public Unit for gross proceeds of C$11,581 (the “2019 Offering”). Each 2019 Public Unit comprised one common share and one half-warrant (“$7.00 Warrant”) with each whole warrant entitling the holder to acquire a common share at a price of C$7.00 for a period of two years ending August 27, 2021. The Company issued 1,092,500 $7.00 warrants. Broker and underwriting fees of C$800 were paid in respect of the 2019 Bought Deal. The net proceeds of C$10,510 ($8,000) after transaction costs, were allocated proportionally between the fair values of the common shares and the $7.00 Warrants. (2) On September 24, 2019, the Company announced the Globex Agreement. The first issuance of 45,367 common shares (valued at C$225) and the first cash payment (C$100) were made on the effective date of the option agreement and recorded as an addition to mineral rights. On September 21, 2020, the second issuance of 65,657 common shares (valued at C$325) and the second cash payment (C$100) were made and recorded as an addition to mineral rights (Note 11). (3) On April 22, 2020, the Company completed the Otis Transaction (Note 5). Otis shareholders received 0.23 of a common share for each Otis common share held (the “Exchange Ratio”), resulting in the issuance of 8,130,630 common shares valued at the market price of C$2.85 per common share. (4) On March 16, 2020, the Company closed the Credit Facility (Note 14). In consideration for the Facility, Excellon issued 107,291 common shares to Sprott Lending. (5) During the second and third quarters of 2020, the Company issued 670,974 common shares in settlement of certain Otis transaction costs and Mexican trade payables totaling C$2,098, as approved by the TSX. An amount of $196 (C$261) was recorded in other expenses to reflect the difference between the market value of the shares issued and the carrying amount of the payables settled. (6) On December 31, 2020, the Company elected to pay the first interest payment on the Debentures (Note 16) in common shares valued at C$754 ($588). The outstanding number and weighted average exercise prices of equity-settled Stock Options, Purchase Warrants, Deferred Share Units (“DSUs”) and Restricted Share Units (“RSUs”) are as follows: Options Warrants Options Outstanding Weighted Average Exercise Price (CAD) Warrants Outstanding Weighted Average Exercise Price (CAD) RSUs Outstanding DSUs Outstanding Outstanding at January 1, 2019 260,000 6.34 370,209 2.50 352,571 372,499 Granted/issued 241,000 4.68 1,092,500 7.00 369,795 95,073 Exercised/settled (10,000 ) 2.85 (370,209 ) 2.50 (39,833 ) - Expired (20,000 ) 5.78 - - - - Forfeited (10,000 ) 4.75 - - (110,047 ) - Outstanding at December 31, 2019 461,000 5.59 1,092,500 7.00 572,486 467,572 Exercisable at December 31, 2019 270,665 5.91 1,092,500 7.00 - - Outstanding at January 1, 2020 461,000 5.59 1,092,500 7.00 572,486 467,572 Granted/issued/acquired (Note 5) 1,002,395 3.34 1,448,488 5.23 337,331 217,264 Exercised/settled (260,596 ) 1.93 (2,400 ) 3.45 (224,750 ) (193,507 ) Expired (332,359 ) 5.20 - - (91,332 ) - Forfeited (23,004 ) 4.26 - - (128,223 ) - Outstanding at December 31, 2020 847,437 4.21 2,538,588 6.00 465,511 491,330 Exercisable at December 31, 2020 548,009 4.52 2,538,588 6.00 - - On April 22, 2020, the Company issued 531,895 Options and 305,060 Warrants (“$3.30 Warrants”) in replacement of pre-existing Otis Options and Warrants outstanding at the date of closing of the Transaction (Note 5). In accordance with the Otis Stock Option Plan, 130,365 stock options expired on July 22, 2020, 90 days after the closing of the Transaction. The $7.00 Warrants expire on August 27, 2021, the $3.30 Warrants expire on March 29, 2022 and the $5.75 Warrants expire on July 30, 2023 (Note 16). Options outstanding and exercisable are as follows: Exercise Price Range (CAD) Stock Options Outstanding Weighted Average Remaining Contractual Life (years) Stock Options Exercisable Weighted Average $ 2.00 to $3.99 502,487 2.42 294,235 3.07 $ 4.00 to $5.99 243,950 3.19 152,774 4.75 $ 6.00 to $7.99 15,000 1.40 15,000 7.63 $ 8.00 to $9.99 86,000 1.59 86,000 8.53 847,437 2.54 548,009 4.52 The grant date fair values of the Options were measured based on the Black-Scholes formula. Expected volatility is estimated by considering historic average share price volatility. The inputs used in the measurement of the Option fair values at grant date were the following: 2020 2019 Fair value at grant date (CAD) $ 1.64 $ 2.90 Share price at grant date (CAD) $ 3.34 $ 4.65 Exercise price (CAD) $ 3.34 $ 4.65 Risk free interest rate 0.56 % 1.71 % Expected life of options in years 5.00 5.00 Expected volatility 74.81 % 77.63 % Expected dividend yield 0.00 % 0.00 % Estimated forfeiture rate 4.76 % 5.40 % Compensation expense is recognized over the vesting period of the grant with the corresponding equity impact recorded in contributed surplus. Share-based compensation expense comprises the following: 2020 2019 $ (CAD) $(CAD) Stock options 634 559 RSU 1,085 456 DSU 835 448 2,554 1,463 |
Loss Per Share
Loss Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings per share [abstract] | |
Loss Per Share | 18. LOSS PER SHARE 2020 2019 Net loss for the year $ (16,020 ) $ (10,075 ) Weighted average number of shares outstanding - basic and diluted 28,881,800 20,674,866 Net loss per share - basic and diluted $ (0.55 ) $ (0.49 ) When calculating earnings per share for periods where the Company has a loss, the calculation of diluted earnings per share excludes any incremental shares from the assumed conversion of stock options and warrants as they would be anti-dilutive. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of contingent liabilities [abstract] | |
Commitments And Contingencies | 19. COMMITMENTS AND CONTINGENCIES The following table summarizes the Company’s significant unrecognized commitments as of December 31, 2020: 2021 2022 2023 2024 2025 Total $ $ $ $ $ $ Exploration License (Silver City Project) - Cash 78 156 - - - 234 Exploration License (Silver City Project) - Shares 332 488 - - - 819 Concession holding fees 648 689 632 709 709 3,387 1,057 1,333 632 709 709 4,441 Excluded above is the Platosa Project Net Smelter Return (NSR) royalty as such payments vary period to period based on production results and commodity prices. The NSR bears a rate of either (a) 1.25% in respect of manto or mineralization other than skarn mineralization or (b) 0.50% in respect of skarn or “Source” mineralization. Payments are made in cash semi-annually. Legal contingencies The Company is defending various legal claims including one against a subsidiary of the Company which is party to an action by a claimant in respect of damages under a property agreement regarding a non-material mineral concession within the Evolución Project. The concession is subject to an exploration and exploitation agreement with a purchase option (the “Antigua Agreement”) dated December 3, 2006 between San Pedro Resources SA de CV (“San Pedro”, now a subsidiary of Excellon) and the owner (the “Plaintiff”) that provides, among other things, for a minimum payment of $2.5 plus value added tax per month and the payment of a 3% NSR royalty. San Pedro has the right to purchase absolute title to La Antigua including the NSR royalty upon payment of $500. San Pedro was under no contractual obligation to put the mine into production and has not done so. The Plaintiff was awarded damages in the court of first instance in Torreón, Coahuila. Both San Pedro and the Plaintiff appealed the decision to the Second District State Court in the Judicial District of Torreón. That Court confirmed the initial decision but, subsequently, pursuant to an order obtained by the Plaintiff, granted the Plaintiff an award of damages multiple times greater than any income the applicable NSR royalty could produce even in the event of commercial production. San Pedro is appealing this decision to the federal courts of Mexico and believes that the decision is without merit and not supported by the evidence, facts or law. The Company expects the likelihood of this decision in respect of damages is remote and will be reversed and rationalized in the federal court system. There is no impact to the ongoing operations of the business. The Company has accrued an amount of $142 related to various labour disputes filed since 2010. |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2020 | |
Revenue [abstract] | |
Revenues | 20. REVENUES Under the terms of the Company’s concentrate sales contracts, lead–silver and zinc-silver concentrates are sold on a provisional pricing basis whereby sales are recognized at prevailing metal prices when the revenue recognition criteria have been met, namely when title and the risks and rewards of ownership have transferred to the customer. Final pricing of each delivery is not determined until one or two months post-delivery. The price recorded at the time of sale may differ from the actual final price received from the customer due to changes in market prices for metals. The price volatility is considered an embedded derivative in accounts receivable. The embedded derivative is recorded at fair value by mark-to-market adjustments at each reporting period until settlement occurs, with the changes in fair value recorded in revenues. During the year ended December 31, 2020, the Company recorded $496, in revenues associated with the initial ore milling test under the toll milling arrangement signed with Hecla Mining Company (2019: $920). The Company recognized the following amounts related to revenue: 2020 2019 $ $ Concentrate revenues from contracts with customers 25,970 26,017 Provisional pricing adjustments on concentrate sales (264 ) (468 ) Revenues from toll milling services 496 920 Total revenues 26,202 26,469 The following table sets out the disaggregation of revenue by metal and form of sale: 2020 2019 $ $ Concentrate revenues from contracts with customers: Silver 16,963 13,693 Lead 3,571 4,422 Zinc 5,172 7,434 Revenues from toll milling services 496 920 Total revenues 26,202 26,469 The Company has offtake agreements with Trafigura Mexico, S.A. de C.V. (“Trafigura”), a subsidiary within the Trafigura group of companies. Due to the availability of alternative processing and commercialization options for its concentrate, the Company believes it would suffer no material adverse effect if it lost the services of Trafigura. |
Expenses By Nature
Expenses By Nature | 12 Months Ended |
Dec. 31, 2020 | |
Expenses By Nature Abstract | |
Expenses By Nature | 21. EXPENSES BY NATURE (a) Cost of sales consist of the following: 2020 2019 $ $ Direct mining and milling costs (1) 19,604 22,541 Changes in inventories (2) 143 193 Depletion and amortization 4,649 4,708 Toll milling costs 234 482 Cost of sales 24,630 27,924 (1) Direct mining and milling costs include personnel, general and administrative, fuel, electricity, maintenance and repair costs as well as operating supplies, external services and transport fees. (2) Changes in inventories reflect the net cost of ore and concentrate (i) sold during the current period but produced in a previous period (an addition to direct mining and milling costs) or (ii) produced but not sold in the current period (a deduction from direct mining and milling costs). (b) Administrative expenses consist of the following: 2020 2019 $ $ Office, overhead and insurance 1,822 1,773 Salaries and wages 1,777 1,442 Corporate development and legal 794 182 Public company costs 237 52 Administrative expenses 4,630 3,448 (c) Other expenses consist of the following: 2020 2019 $ $ Unrealized gain on marketable securities (Note 6 ) (645 ) (289 ) Unrealized gain on purchase warrants (Note 6) (67 ) - Loss (gain) on disposal of assets (Note 11 ) 188 (19 ) Unrealized foreign exchange loss (gain) 653 (360 ) Realized foreign exchange loss (gain) 276 (115 ) Interest income (47 ) (60 ) Shares issued at a discount to settle payables 196 - Management fee income (Note 11 ) (95 ) - Other (86 ) 61 Other expenses, net 373 (782 ) |
Exploration Expense
Exploration Expense | 12 Months Ended |
Dec. 31, 2020 | |
RSU. | |
Exploration Expense | 22. EXPLORATION EXPENSE Exploration expenses were incurred on the following projects: 2020 2019 $ $ Platosa 1,037 2,965 Evolución 582 833 Silver City 1,672 55 Kilgore 741 - 4,032 3,853 |
Finance Expenses
Finance Expenses | 12 Months Ended |
Dec. 31, 2020 | |
Finance Expenses | |
Finance Expenses | 23. FINANCE EXPENSES Finance expenses consist of the following: 2020 2019 $ $ Interest expense - convertible debentures 1,222 - Interest expense - other 759 71 Rehabilitation provision - accretion 61 26 Post-retirement benefits - accretion 40 62 Gain on change in fair value of purchase warrant liabilities - (335 ) Unrealized loss (gain) on currency hedges 426 (119 ) Finance expense (income), net 2,508 (295 ) |
Income Tax
Income Tax | 12 Months Ended |
Dec. 31, 2020 | |
Major components of tax expense (income) [abstract] | |
Income Tax | 24. INCOME TAX The Company’s provision for (recovery of) income tax differs from the amount computed by applying the combined Canadian federal and provincial income tax rates to income (loss) before income tax as a result of the following: 2020 2019 $ $ Statutory tax rates 26.5 % 26.5 % Income tax (recovery) computed at the statutory rates (3,243 ) (2,399 ) Non-deductible items (1,996 ) 120 Change in tax benefit not recognized 9,098 2,933 Foreign tax differentials (355 ) (267 ) Other 112 735 Special mining royalty 167 (100 ) Provision for income taxes 3,783 1,022 The enacted or substantively enacted tax rates in Canada (26.5% in 2020) and Mexico (30% in 2020) are applied in the tax provision calculation. The 7.5% mining royalty in Mexico is treated as an income tax in accordance with IFRS for financial reporting purposes, as it is based on a measure of revenue less certain specified costs. On substantive enactment, a taxable temporary difference arises, as certain mining assets related to extractive activities have a book basis but no tax basis for purpose of the royalty. As at December 31, 2020, the Company has recognized a deferred tax liability of $318 (as at December 31, 2019 - $152) in respect of this special mining royalty. This deferred tax liability will be drawn down to $nil as a reduction to tax expense over the life of mine as the mine and its related assets are depleted or depreciated. Provision for income taxes consists of the following: 2020 2019 $ $ Current income taxes 305 299 Deferred income taxes 3,478 723 3,783 1,022 The following table reflects the Company’s deferred income tax assets (liabilities): 2020 2019 $ $ Non-capital losses carried forward 1,521 9,010 Resource related assets 1,285 1,061 Property, plant and equipment 2,079 (697 ) Deferred income and other 1 6 Accrued revenue 26 10 Prepaid expenses, deposits and other 233 1,504 Deferred tax assets 5,145 10,894 Prepaid expenses, deposits and other (611 ) (659 ) Special mining royalty (318 ) (152 ) Deferred tax liabilities (929 ) (811 ) Net deferred tax assets 4,216 10,083 The Company recognized deferred tax liabilities of $929, and deferred tax assets of $5,145 in respect of tax losses as at December 31, 2020 (as at December 31, 2019 – net deferred tax asset of $10,083) as projections of various sources of income support the conclusion that the realization of these deferred tax assets is probable. The following temporary differences and non-capital losses have not been recognized in the consolidated financial statements. 2020 2019 $ $ Non-capital losses carried forward 57,299 23,982 Capital losses 1,214 3,697 Resource related deductions 22,510 20,961 Share issuance costs 9 26 Property, plant and equipment 206 141 Prepaid expenses, deposits and other 2,160 1,522 83,398 50,330 As at December 31, 2020, the Company has non-capital losses to be carried forward and applied against taxable income of future years. The non-capital losses have expiry dates as follows: 2020 2019 $ $ 2021 1,471 1,551 2022 - - 2023 - - 2024 and thereafter 62,678 52,466 64,149 54,017 As at December 31, 2020, the Company has Canadian capital losses of $8,439 (as at December 31, 2019 – $8,252) that may be carried forward indefinitely and applied against capital gains of future years. The Company also has loss carryforwards of $1,048 for U.S. tax purposes. Of this amount, $433 expires between 2033 and 2037 fiscal years, and $615 is not subject to expiration. At December 31, 2020, $nil (as at December 31, 2019 – $nil) was recognised as a deferred tax liability for taxes that would be payable on the unremitted earnings of certain of the Company’s subsidiaries as the Company has determined that undistributed profits of its subsidiaries will not be distributed in the foreseeable future; and the investments are not held for resale and are expected to be recouped by continued use of these operations by the subsidiaries. The amount of temporary differences not booked for these unremitted earnings at December 31, 2020 is $4,887 (as at December 31, 2019 – $5,147). |
Related Parties
Related Parties | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of transactions between related parties [abstract] | |
Related Parties | 25. RELATED PARTIES The former corporate secretary of the Company is a partner in a firm that provides legal services to the Company. During year ended December 31, 2020, the Company incurred legal services from this firm of $50 (2019 – $74). As at December 31, 2020, the Company had an outstanding payable balance due to this firm of $8 (as at December 31, 2019 – $nil). |
Key Management Transactions
Key Management Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of transactions between related parties [abstract] | |
Key Management Transactions | 26. KEY MANAGEMENT TRANSACTIONS Remuneration to directors and key management who have the authority and responsibility for planning, directing and continuing the activities of the Company: 2020 2019 $ $ Salaries, fees and benefits 1,510 1,227 Director’s fees 285 315 Shared-based payments 1,175 962 2,970 2,504 |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of nature and extent of risks arising from financial instruments [abstract] | |
Financial Instruments | 27. FINANCIAL INSTRUMENTS Fair Values of non-derivative financial instruments All financial assets and financial liabilities, other than derivatives, are initially recognized at the fair value of consideration paid or received, net of transaction costs, as appropriate, and are subsequently carried at fair value or amortized cost. At December 31, 2020, the carrying amounts of trade and other payables and other current assets are considered to be reasonable approximations of their respective fair values due to the short-term nature of these instruments. The methods and assumptions used in estimating the fair value of other financial assets and liabilities are as follows: Embedded derivatives – provisional pricing Re v n e fro t s l m t l p od c e b o i pr e me i e d i e e o a e a e o n Fair Value Hierarchy The three levels of the fair value hierarchy are as follows: ● Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities; ● Level 2 – Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly; and ● Level 3 – Inputs that are not based on observable market data Fair value 2020 2019 hierarchy $ $ Financial assets Fair value through profit and loss Marketable securities Level 1 2,138 348 Purchase warrants Level 2 212 - Trade receivables Level 2 1,782 2,278 Forward foreign exchange contracts Level 2 21 432 4,153 3,058 There were no transfers between levels 1, 2 or 3 during the twelve months ended December 31, 2020. Valuation techniques and inputs used to determine fair values include: ● Marketable securities - the use of quoted market prices ● Warrants - based on a Black-Scholes model which uses quoted observable inputs ● Provisional pricing receivables – key inputs are payable metal and future metal prices, marked-to-market based on a quoted forward price and final settlement weights and assays ● Forward foreign currency contracts – present value of future cash flows based on the forward exchange rates at the balance sheet date Risk management policies and hedging activities The Company is sensitive to changes in commodity prices, foreign exchange and interest rates. The Company’s board of directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. The Company addresses its price-related exposures through the use of options, futures, forwards and derivative contracts were appropriate. Credit risk Credit risk is the risk of unexpected loss if a customer or third party to a financial instrument fails to meet its contractual obligations. The Company’s credit risk is primarily attributable to cash and cash equivalents. Management believes the credit risk on cash and cash equivalents is low since the Company’s cash and cash equivalents are held at large international financial institutions with strong credit ratings. The Company is exposed to credit risk from its current customer Trafigura. Accounts receivable are subject to normal industry credit risks and are considered have a low credit risk. Liquidity risk Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company has a planning and budgeting process in place to determine the funds required to meet its operating and growth objectives. To the extent that the Company may foresee insufficient liquidity to meet these obligations, management will consider securing additional funds through equity or debt transactions. Accounts payable excluding accrued liabilities are due within 90 days or less. Currency risk The Mexican peso (“MXN”), US dollar (“USD”) and the Canadian dollar (“CAD”) are the functional currencies of subsidiaries of the Company and, as a result, currency exposures arise from transactions and balances in currencies other than the functional currencies. The Company’s potential currency exposures comprise: ● translational exposure in respect of non-functional currency monetary items ● transactional exposure in respect of non-functional currency expenditure and revenues; ● commodity price risk; and ● interest rate risk. A significant portion of the Company’s capital expenditures, operating costs, exploration, and administrative expenditures are incurred in MXN, while revenues from the sale of concentrates are denominated in USD. The fluctuation of the USD in relation to the MXN, consequently, impacts the reported financial performance of the Company. The Company entered into forward contracts to purchase MXN in exchange for USD at various rates and maturity dates. As at December 31, 2020, forward contracts for the purchase of MXN16 million in exchange for $0.8 million at an average rate of 20.45 MXN/USD, at various maturity dates until February 2021, were outstanding. The mark-to-market adjustment on forward foreign exchange contracts resulted in an unrealized loss of $426 recorded in finance expense for the year ended December 31, 2020 ($119 unrealized gain as at December 31, 2019) and an asset balance of $21 at December 31, 2020 (December 31, 2019 – $432 asset balance). Translational exposure in respect of non-functional currency monetary items Monetary items, including financial assets and liabilities, denominated in currencies other than the functional currency of an operation are periodically revalued to the functional currency equivalents as at that date, and the associated unrealized gain or loss is recorded in the consolidated statement of comprehensive income (loss) to reflect this risk. The principal non-functional currency to which the Company is exposed is the USD. Based on the Company’s net financial assets and liabilities in USD as at December 31, 2020, a weakening of the USD against the MXN and CAD functional currencies by 1%, with all other variables held constant, would have increased/(decreased) net income and equity by approximately $46. Transactional exposure in respect of non-functional currency expenditure and revenues Certain operating and capital expenditures are incurred by some operations in currencies other than their functional currency. Sales revenue is earned in currencies other than the functional currency of operations, and certain exchange controls may require that funds be maintained in currencies other than the functional currency of the operation. Commodity price risk The n ’ p n e o u c n pr e s g e n u m The Company is p a l i p e e h h ’ pr u d e i c av e u a Interest rate risk Cash and cash equivalents earn interest at floating rates dependent upon market conditions. |
Capital Management
Capital Management | 12 Months Ended |
Dec. 31, 2020 | |
Capital Management Abstract | |
Capital Management | 28. CAPITAL MANAGEMENT The Company’s objectives of capital management are intended to safeguard the entity’s ability to continue as a going concern and to continue the exploration of, and extraction of ore from its mining properties. The capital of the Company consists of the elements within shareholders’ equity. Risk and capital management are monitored by the board of directors. The Company manages the capital structure and makes adjustments depending on economic conditions. Funds have been primarily secured through issuances of equity capital. The Company invests all capital that is surplus to its immediate needs in short-term, liquid and highly rated financial instruments, such as cash and other short-term deposits, all held with major financial institutions. Significant risks are monitored, and actions are taken, when necessary, according to the Company’s approved policies. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting | |
Segment Reporting | 29. SEGMENT REPORTING MEXICO CORPORATE TOTAL 2020 2019 2020 2019 2020 2019 $ $ $ $ $ $ Property, plant and equipment 24,877 23,391 953 1,427 25,830 24,818 Capital expenditures (7,620 ) (5,719 ) (48 ) (1,068 ) (7,668 ) (6,787 ) Mineral rights 804 1,003 19,707 1,673 20,511 2,676 Total assets 63,062 47,981 10,217 7,601 73,279 55,582 Total liabilities 12,441 11,541 10,396 1,849 22,837 13,390 2020 2019 $ $ MEXICO Revenues 26,202 26,469 Cost of sales (24,630 ) (27,924 ) Exploration (1,619 ) (3,789 ) Other (expense) income (1,058 ) 826 Finance (expense) income (136 ) (40 ) Income tax expense (5,497 ) (928 ) Net loss (6,738 ) (5,386 ) CORPORATE Corporate administrative expenses (6,896 ) (4,823 ) Exploration (2,413 ) (64 ) Other (expense) income 685 (44 ) Finance (expense) income (2,372 ) 335 Income tax recovery (expense) 1,714 (93 ) Net loss (9,282 ) (4,689 ) Net Loss (16,020 ) (10,075 ) |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of associates [abstract] | |
Consolidation | (a) Consolidation i. Subsidiaries - are entities controlled by the Company where control is achieved when the Company has the power to govern the financial and operating policies of the entity. The Company owns directly and indirectly 100% of all the subsidiaries. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. The accounting policies of subsidiaries have been changed when necessary to align them with the policies adopted by the Company. With regards to the acquisition of Otis (Note 5), the Company adopted the definition of a “business” in line with the new guidance as issued in IFRS 3 (Revised) Business Combinations ii. Transactions eliminated on consolidation - intercompany transactions, balances, income and expenses are eliminated in preparing the consolidated financial statements. |
Foreign Currency Transactions and Translation | (b) Foreign currency transactions and translation i. Transactions and balances - foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the date of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the Company’s consolidated statements of comprehensive income (loss). All foreign exchange gains and losses are presented in the consolidated statement of comprehensive income (loss) within Other income/expense. ii. Translation - the results and financial position of all the Company entities that have a functional currency different from the presentation currency are translated into the presentation currency as follows: ● Assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet; ● Income and expenses for each statement of comprehensive income (loss) are translated at average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the rate on the dates of the transactions); and ● All resulting exchange differences have been recognized in other comprehensive income (loss) and accumulated as a separate component of equity. |
Cash and Cash equivalents | (c) Cash and Cash equivalents Cash and cash equivalents consist of cash on hand, bank deposits and highly liquid short-term investments with a maturity date of three months or less when acquired. |
Financial Instruments | (d) Financial instruments Financial assets Routine purchases and sales of financial assets are recognized on trade date, the date on which the Company commits to purchase or sell the asset. At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in the consolidated statement of comprehensive income (loss). Subsequent measurement of debt instruments depends on the classification of financial assets determined at initial recognition. Classification of financial assets depends on the entity’s business model for managing the financial assets and the contractual terms of the cash flows. The Company classifies and provides for financial assets as follows: ● Financial assets at fair value through profit or loss ● Financial assets at fair value through other comprehensive income ● Financial assets at amortized cost At each balance sheet date, the Company assesses the expected credit losses associated with its financial assets carried at amortized cost and fair value through other comprehensive income. The impairment methodology applied depends on whether there has been a significant increase in credit risk. When sold or impaired, any accumulated fair value adjustments previously recognized are included in the consolidated statement of comprehensive income (loss). For trade receivables, the Company applies the simplified approach permitted by IFRS 9, which requires expected lifetime losses to be recognized from initial recognition of the receivables. Financial assets are derecognized when the rights to receive cash flows from the financial assets have expired or have been transferred and the Company has transferred substantially all the risks and rewards of ownership. Derivative financial instruments The Company may hold derivative financial instruments to hedge its risk exposure to fluctuations in commodity prices, including the Company’s final product, consumables and other currencies compared to the USD. Derivative financial instruments are measured at fair value at each reporting period. Non-hedged derivative financial instruments All derivative instruments not designated in a hedge relationship that qualifies for hedge accounting are classified as financial instruments at fair value through profit or loss. Changes in fair value of non-hedged derivative financial instruments are included in the consolidated statement of comprehensive income (loss) as non-hedged derivative gains or losses. Financial liabilities Transaction costs associated with financial instruments, carried at fair value through profit or loss, are expensed as incurred, while transaction costs associated with all other financial instruments are included in the initial carrying amount of the asset or the liability. The amortization of debt issue costs is calculated using the effective interest method. |
Inventories | (e) Inventories Silver-lead and silver-zinc in concentrate and ore stockpiles are physically measured or estimated and valued at the lower of cost or net realizable value. Net realizable value is the estimated selling price, less estimated costs of completion and costs of selling final product. Cost is determined by the weighted average method and comprises direct purchase costs and an appropriate portion of fixed and variable overhead costs, including amortization, incurred in converting materials into finished goods. The cost of production is allocated to joint products using a ratio of weighted average volume by product at each month end. Separately identifiable costs of conversion of each metal concentrate are specifically allocated. Materials and supplies are valued at the lower of cost or net realizable value. Any provision for obsolescence is determined by reference to specific items. A regular review is undertaken to determine the extent of any provision for obsolescence by comparing items to their replacement costs. When inventories have been written down to net realizable value, the Company makes a new assessment of net realizable value in each subsequent period. If the circumstances that caused the write-down no longer exist, the remaining amount of the write-down is reversed. |
Property, Plant and Equipment | (f) Property, plant and equipment Property, plant and equipment are carried at cost less accumulated amortization and any impairment charges. When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate assets (major components) of property, plant and equipment. The cost of replacing a part of an item of property, plant and equipment is recognized in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Company, and its cost can be measured reliably. The carrying amount of the replaced part is derecognized. The costs of the day-to-day servicing of property, plant and equipment are recognized in the consolidated statement of comprehensive income (loss) as incurred. Amortization is recorded over the useful life of the asset, or over the remaining life of the mine, if shorter, as follows: ● Mining properties – on a units-of-production basis; ● Associated mining equipment – 3-10 years on a straight-line basis; ● Buildings – 20 years on a straight-line basis; and ● Processing equipment – 4-8 years on a straight-line basis. Amortization charges on a unit-of-production basis are based on measured and indicated mineral resources. The method of amortization, estimates of residual values and useful lives are reassessed at least at each financial year-end, and any change in estimate is taken into account in the determination of future amortization charges. |
Exploration and Evaluation Expenditures | (g) Exploration and evaluation expenditures Acquisitions of mineral rights are capitalized. Subsequent exploration and evaluation costs related to an area of interest are expensed as incurred on a project-by-project basis. When a licence is relinquished or a project is abandoned, the related costs are immediately recognized in the consolidated statement of comprehensive income (loss). Exploration properties that contain estimated Proven and Probable Mineral Reserves, but for which a development decision has not yet been made, are subject to periodic review for impairment when events or changes in circumstances indicate the project’s carrying value may not be recoverable. Exploration and evaluation assets are reclassified to “Mine Properties - Mines under construction” when the technical feasibility and commercial viability of extracting the Mineral Resources or Mineral Reserves are demonstrable and construction has commenced or a decision to construct has been made. Exploration and evaluation assets are assessed for impairment before reclassification to “Mines under construction”, and the impairment loss, if any, is recognized in the consolidated statement of comprehensive income (loss). |
Development Expenditure | (h) Development expenditure Development expenditures incurred by or on behalf of the Company are accumulated separately for each property in which an indicated resource has been identified. Such expenditures comprise costs directly attributable to the construction of a mine and the related infrastructure. General and administrative costs are allocated to a development asset only to the extent that those costs can be related directly to development activities in the relevant area of interest. Once a development decision has been taken, the development expenditure is classified under property, plant and equipment as ‘‘development properties’’. A development property is reclassified as a “mining property’’ at the end of the commissioning phase, when the mine is capable of operating in the manner intended by management. No amortization is recognized in respect of development properties until they are reclassified as “mining properties’’. Each development property is tested for impairment in accordance with the Company’s impairment policy. |
Mining Properties | (i) Mining properties When further development expenditures are incurred in respect of a mining property after the commencement of production, such expenditures are carried forward as part of the mining property when it is probable that additional future economic benefits associated with the expenditure will flow to the consolidated entity. Otherwise, such expenditures are classified as a cost of production. Amortization is charged using the units-of-production method. The units-of-production basis results in an amortization charge proportional to the depletion of measured and indicated resources. Mine properties are tested for impairment in accordance with the Company’s impairment policy. |
Decommissioning and Site Rehabilitation Provision | (j) Decommissioning and site rehabilitation provision The Company records the present value of estimated costs of legal and constructive obligations required to restore operating locations in the period in which the obligation is incurred. The nature of these restoration activities includes dismantling and removing structures, rehabilitating mines and tailings dams, dismantling operating facilities, closure of plant and waste sites, and restoration, reclamation and re-vegetation of affected areas. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a discount rate that reflects the current market assessments of the time value of money. When the liability is initially recognized, the present value of the estimated cost is capitalised by increasing the carrying amount of the related mining asset. The periodic unwinding of the discount applied in establishing the net present value of provisions due to the passage of time is recognized in the consolidated statement of comprehensive income (loss) as a finance cost. Changes in the rehabilitation estimate attributable to development will be recognized as additions or charges to the corresponding assets and rehabilitation liability when they occur. |
Mineral Rights | (k) Mineral Rights Mineral rights are carried at cost and amortized using a units-of-production method based on the resources that exist in the location that has access to such rights. Methods of amortization and estimated useful lives are reassessed annually and any change in estimate is taken into account in the determination of future amortization charges. |
Impairment | (l) Impairment i. Financial assets - a financial asset not carried at fair value through profit or loss is assessed at each reporting date to determine whether there is objective evidence that it is impaired. A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event had a negative effect on the estimated future cash flows of that asset that can be estimated reliably. ii. Non-financial assets - the carrying amounts of the Company’s non-financial assets, primarily property, plant and equipment and mineral rights, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset or cash generating unit (CGU) recoverable amount is estimated. Recoverability of assets or CGU, the mine operation, to be held and used are measured by a comparison of the carrying value of the asset to the recoverable amount, which is the higher of value in use and fair value less costs to sell. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets. An impairment loss is recognized if the carrying amount of an asset or the CGU exceeds its estimated recoverable amount. Impairment losses are recognized in the consolidated statement of comprehensive income (loss). Impairment losses recognized in respect of the CGU are allocated to reduce the carrying amount of long-lived assets in the unit on a pro rata basis. Non-financial assets that have been impaired in prior periods are tested for possible reversal of impairment whenever events or changes in circumstances indicate that the impairment has reversed. If the impairment has reversed, the carrying amount of the asset is increased to its recoverable amount but not beyond the carrying amount that would have been determined had no impairment loss been recognized for the asset in the prior periods. A reversal of an impairment loss is recognized into earnings immediately. |
Future Termination Benefits | (m) Future Termination Benefits Employees of the Company’s Mexican mines are entitled by local labor laws to employee departure indemnities, generally based on each employee’s length of service, employment category and remuneration. The cost of these retirement benefits is determined using the projected unit credit method. Current service cost and any past service cost are recognized in the same line item in the consolidated statement of comprehensive income (loss) as the related compensation cost. Changes in actuarial assumptions used to determine the accrued benefit obligation are recognized in full in the period in which they occur, in the the consolidated statement of comprehensive income (loss). The most significant assumptions used in accounting for post employment benefits are the discount rate, the mortality and the life of mine. The discount rate is used to determine the present value of future liabilities. Each year, the unwinding of the discount on those liabilities is charged to the Company’s consolidated statement of comprehensive income (loss) as the interest cost. The life of mine and mortality assumptions are used to project the future stream of benefit payments, which is then discounted to arrive at a present value of liabilities. The values attributed to the liabilities are assessed in accordance with the advice of independent qualified actuaries. |
Current and Deferred Income Tax | (n) Current and deferred income tax The tax expense for the period is comprised of current and deferred tax. Tax is recognized in the consolidated statement of comprehensive income (loss), except to the extent that it relates to items recognized in other comprehensive income (loss) or directly in equity. The current income tax charge is calculated on the basis of the tax laws substantively enacted at the balance sheet date in the countries where the Company’s entities operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. Where appropriate, the Company establishes provisions expected to be paid to the tax authorities. Deferred income tax is recognized, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, the deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit nor loss. Deferred income tax is provided on temporary differences arising on investments in subsidiaries except in the case of a subsidiary where timing of the reversal of the temporary difference is controlled by the Company and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred income tax is determined on a non discount basis using tax rates (and laws) that have been substantively enacted by the balance sheet date and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled. Deferred income tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized. In assessing the need to recognize a deferred tax asset, management considers all available evidence including past operating results, estimates of future taxable income and the feasibility of ongoing tax planning strategies. The Company recognizes neither the deferred tax asset regarding the temporary difference on the rehabilitation liability, nor the corresponding deferred tax liability regarding the temporary difference on the rehabilitation asset. Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income taxes assets and liabilities relate to income taxes levied by the same taxation authority on either the taxable entity or different taxable entities where there is an intention to settle the balances on a net basis. i. Royalties - royalties, resource rent taxes and revenue-based taxes are accounted for under taxes when they have the characteristics of an income tax. This is considered to be the case when they are imposed under Government authority and the amount payable is based on taxable income – rather than based on quantity produced or as a percentage of revenue – after adjustment for temporary differences. For such arrangements, current and deferred tax is provided on the same basis as described above for other forms of taxation. Obligations arising from royalty arrangements that do not satisfy these criteria are recognized as current provisions and included in cost of sales. The 7.5% Mexican mining royalty is based on earnings before interest tax, depreciation and amortization (EBITDA), is treated as an income tax in accordance with IFRS, as it is based on a measure of revenue less certain specified costs. The extraordinary mining royalty of 0.5% on precious metals revenues is not considered to be an income tax in accordance with IFRS as it is based on a percentage of revenue and not taxable income. |
Share-based Payments | (o) Share-based payments ii. Share option plan - employees (including directors and senior executives) of the Company receive a portion of their remuneration in the form of share-based payment transactions, whereby employees render services as consideration for equity instruments (“equity-settled transactions”). In situations where equity instruments are issued to non-employees and some or all of the goods or services received by the Company, as consideration cannot be specifically identified, they are measured at fair value of the share-based payment. Otherwise, share-based payments are measured at the fair value of goods or services received. iii. Equity-settled transactions - the costs of equity-settled transactions with employees are measured by reference to the fair value at the date on which they are granted using the Black-Scholes option-pricing model. The costs of equity-settled transactions are recognized, together with a corresponding increase in equity, over the period in which the performance and/or service conditions are fulfilled, ending on the date on which the relevant employees become fully entitled to the award (“the vesting date”). The cumulative expense is recognized for equity-settled transactions at each reporting date until the vesting date reflects the Company’s best estimate of the number of equity instruments that will ultimately vest. The profit or loss charge or credit for a period represents the movement in cumulative expense recognized as at the beginning and end of that period and the corresponding amount is represented in contributed surplus. No expense is recognized for awards that do not ultimately vest. Where the terms of an equity-settled award are modified, the minimum expense recognized is the expense as if the terms had not been modified. An additional expense is recognized for any modification, which increases the total fair value of the share-based payment arrangement or is otherwise beneficial to the employee as measured at the date of modification. The dilutive effect of outstanding options is reflected as additional dilution in the computation of earnings per share. iii. Cash-settled transactions - a Deferred Share Unit (“DSU”) Plan was established for directors of the Company. The cost of the DSUs is measured initially at fair value based on the closing price of the common shares preceding the day the DSUs are granted. The Company has the option of settling the DSUs in cash or common shares either from treasury or from market purchases. Accordingly, the expense is recorded in the consolidated statement of comprehensive income (loss) as share-based payments and credited to equity under contributed surplus. A Restricted Share Unit (“RSU”) Plan was established for directors, certain employees and eligible contractors of the Company. The cost of the RSUs is measured initially at fair value on the authorization date based on the market price of the common shares preceding the day the RSUs are authorized by the Board of Directors. The Company has the option of settling the RSUs in cash or common shares either from treasury or from market purchases. Accordingly, the expense is recorded in the consolidated statement of comprehensive income (loss) in share-based payments and credited to equity under contributed surplus. |
Revenue Recognition | (p) Revenue recognition Company policy requires all production to be sold under contract. Revenue is only recognized on individual concentrate shipments when following conditions are satisfied: ● Contracts with customers have been identified ● Performance obligations in the contract have been identified ● Transaction price is determined ● Transaction price is allocated to the performance obligations in the contract ● Performance obligation in the contract is satisfied Satisfaction of these conditions depends on the terms of trade with individual customers. Generally, control over goods are considered to have transferred to the customer upon delivery. Concentrate products are sold on a ‘provisional pricing’ basis where the sale price received by the group is subject to a final adjustment at the end of a period that may be up to 90 days after delivery to the customer. The final sale price is based on the market price on the quotational date in the contract of sale. Sales are initially recognized when the revenue recognition criteria have been satisfied, using market prices at that date. At each reporting date the provisionally priced shipment is marked to market based on the forward selling price for the quotational point specified in the contract until that point is reached. Revenue is only recognized on this basis where the forward selling price can be reliably measured. Many of the Company’s sales are subject to an adjustment based on confirmation of the technical specifications of each shipment by the customer. In such cases, revenue is recognized based on the group’s best estimate of the technical specifications at the time of shipment, and any subsequent adjustments are recorded against revenue when final specifications are confirmed and agreed to by both parties, as per the offtake agreement terms. |
Earnings Per Share | (q) Earnings per share Basic earnings per share (“EPS”) is calculated by dividing the net income (loss) for the period attributable to equity owners of Excellon by the weighted average number of common shares outstanding during the period. Diluted EPS is calculated by adjusting the weighted average number of common shares outstanding for dilutive instruments. The number of shares included with respect to options, warrants and similar instruments is computed using the treasury stock method. Excellon’s potentially dilutive common shares comprise stock options granted to employees and warrants. |
Segment Reporting | (r) Segment reporting The Company has two reportable segments based on a geographical basis. During the year, the Company operated in Mexico and Canada. The Mexican operation is principally engaged in the acquisition, exploration, evaluation, and development of mining properties. The Platosa property is in commercial production and is earning revenue through the sale of silver-lead concentrate and silver-zinc concentrate. The Canadian operations are principally engaged in the financing, acquisition, exploration and evaluation of mining properties. Segments are reviewed by the CEO, who is considered to be the chief operating decision maker. |
Leases | (s) Leases At inception of a contract, the Company assesses whether a contract is, or contains, a lease based on whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured based on the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received. The assets are amortized to the earlier of the end of the useful life of the right-of-use asset or the lease term using the straight-line method as this most closely reflects the expected pattern of consumption of the future economic benefits. In addition, the right-of-use assets may be periodically reduced by impairment losses, if any, and adjusted for certain re-measurements of the lease liability. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate. Lease payments include fixed payments, and variable payments that are based on an index or a rate. Cash payments for the principal portion of the lease liability are presented within the financing activities and the interest portion of the lease liability is presented within the operating activities of the statement of cash flows. Short-term lease payments and variable lease payments not included in the measurement of the lease liability are presented within the operating activities of the statement of cash flows. The lease liability is measured at amortized cost using the effective interest method. It is re-measured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Company’s estimate of the amount expected to be payable under a residual value guarantee, or if the Company changes its assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is re-measured in this way, a corresponding adjustment is either made to the carrying amount of the right-of-use asset or is recorded in the consolidated statement of comprehensive income (loss) if the carrying amount of the right-of-use asset has been reduced to zero. The Company has lease arrangements that include both lease and non-lease components. The Company accounts for each separate lease component and its associated non-lease components as a single lease component for all its asset classes. Additionally, for certain lease arrangements that involve leases of similar assets, the Company applies a portfolio approach to effectively account for the underlying right-of-use ROU assets and lease liabilities. |
Farm-out Accounting | (t) Farm-out accounting Mineral rights held by the Company which are subject to a farm-out arrangement, where a farmee incurs certain expenditures on a property to earn an interest in that property, are accounted as follows: ● the Company does not record exploration expenditures made by the farmee on the property; ● any cash consideration and the initial fair value of any shares received is credited against the costs previously capitalized to the mineral rights; ● the change in fair value of any shares received by Company as part of a farm-out arrangement are recorded in the consolidated statement of comprehensive income (loss); and ● the Company uses the carrying value of the mineral rights before the farm-out arrangement as the carrying value for the portion of the interest retained (if any). |
Accounting Standards Issued But Not Yet Applied | (u) Accounting standards issued but not yet applied The Company has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective. Amendments to IAS 16 Property, Plant and Equipment: Proceeds before Intended Use In May 2020, the IASB issued Property, Plant and Equipment—Proceeds before Intended Use, which made amendments to IAS 16 Property, Plant and Equipment. The amendments prohibit a company from deducting from the cost of property, plant and equipment amounts received from selling items produced while the company is preparing the asset for its intended use (i.e. pre-production revenue). Instead, a company will recognize such sales proceeds and related cost in the consolidated statement of comprehensive income (loss). The amendment is effective for annual periods beginning on or after January 1, 2022. |
Acquisition of Otis Gold Corp.
Acquisition of Otis Gold Corp. (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of detailed information about business combination [abstract] | |
Schedule of Purchase Price of Allocation | The purchase price has been determined and allocated as follows: April 22, 2020 $ Purchase price Common shares of Excellon issued 16,370 Fair value of Excellon options issued 361 Fair value of Excellon warrants issued 233 Transaction costs 1,723 18,687 Assets acquired Cash 51 Tax receivables, prepaid expenses and other assets 24 Property, plant and equipment 35 Reclamation deposits 53 Right of use assets 48 Mineral rights - Oakley Project 5,332 Mineral rights - Kilgore Gold Project 13,711 Liabilities Assumed Trade payables (166 ) Convertible loan from Excellon (353 ) Current and long-term lease liabilities (48 ) 18,687 |
Schedule of Fair Value of Warrant Assumption Model Pricing | The fair value of the Replacement Options and Replacement Warrants was determined using the Black-Scholes pricing model with the following assumptions: Stock Options Warrants Exercise price C$1.10 - C$7.65 C$3.30 Expected life (years) 0.23 - 4.00 1.9 Volatility 72.9% - 87.9 % 79.1 % Risk-free rate 0.66% - 0.75 % 0.66 % |
Marketable Securities and War_2
Marketable Securities and Warrants (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Current and long-term lease liabilities. | |
Schedule of Fair Value of Marketable Securities and Warrants | The fair value of the Warrants was determined using a Black-Scholes model, risk free rate of 0.33%, Wallbridge share price of C$0.78 and volatility of 107% at December 31, 2020. 2020 2019 $ $ Marketable securities at fair value 2,138 348 Warrants at fair value 212 - 2,350 348 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Inventories Abstract | |
Schedule of Inventories | 2020 2019 $ $ Ore stockpiles 463 186 Concentrate inventory 4 588 Production spare parts 2,441 2,402 Obsolescence Provision - spare parts (523 ) (561 ) 2,385 2,615 |
Other Current Assets (Tables)
Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Summary of Other Current Assets | 2020 2019 $ $ Income taxes recoverable 145 415 Prepaid expenses 340 737 Restricted cash 765 - Forward foreign exchange contracts (1) 21 432 Others 52 15 1,323 1,599 (1) Comparative period reclassified from other payables to match current-period other current asset classification. |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Schedule of Property, Plant and Equipment | Assets Right Mining Mining Processing under of use properties equipment equipment construction assets Total $ $ $ $ $ $ At January 1, 2019 Cost 29,212 15,938 5,756 1,368 - 52,274 Accumulated amortization (17,130 ) (8,860 ) (4,537 ) - - (30,527 ) 12,082 7,078 1,219 1,368 - 21,747 Year ended December 31, 2019 Opening net book value 12,082 7,078 1,219 1,368 - 21,747 Additions 1,202 847 111 3,621 1,006 6,787 Reclassification 33 (640 ) 33 (66 ) 640 - Depletion and amortization (2,257 ) (1,955 ) (291 ) - (228 ) (4,731 ) Exchange differences 516 290 52 148 9 1,015 Closing net book value 11,576 5,620 1,124 5,071 1,427 24,818 At December 31, 2019 Cost 31,774 16,887 6,160 5,071 1,646 61,538 Accumulated amortization (20,198 ) (11,267 ) (5,036 ) - (219 ) (36,720 ) 11,576 5,620 1,124 5,071 1,427 24,818 Year ended December 31, 2020 Opening net book value 11,576 5,620 1,124 5,071 1,427 24,818 Additions (1) 1,416 1,873 673 3,658 48 7,668 Reclassification 4,046 3,333 - (7,325 ) (54 ) - Depletion and amortization (2,191 ) (2,101 ) (298 ) - (202 ) (4,792 ) Exchange differences (2) (377 ) 164 (503 ) (882 ) (266 ) (1,864 ) Closing net book value 14,470 8,889 996 522 953 25,830 At December 31, 2020 Cost 36,400 21,576 6,075 522 1,640 66,213 Accumulated amortization (21,930 ) (12,687 ) (5,079 ) - (687 ) (40,383 ) 14,470 8,889 996 522 953 25,830 (1) During the year ended December 31, 2020, the Company incurred $3,658 in sustaining capital expenditures initially recorded as assets under construction, primarily related to the expansion of the dewatering system at the Platosa Mine and a raise of the tailings management facility at the Miguel Auza processing facility. All assets that have been commissioned are reclassified to their associated asset class. (2) Unrealized foreign exchange losses on translation of Mexican peso assets at the period-end exchange rate. |
Mineral Rights (Tables)
Mineral Rights (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Extractive Industries [Abstract] | |
Schedule of Mineral Rights | Platosa Beschefer Silver City Kilgore Oakley (Mexico) (Canada) (1) (Germany) (2) (Idaho) (3) (Idaho) (4) Total $ $ $ $ $ $ At January 1, 2019 Cost 3,621 1,466 - - - 5,087 Accumulated amortization (2,460 ) - - - - (2,460 ) 1,161 1,466 - - - 2,627 Year ended December 31, 2019 Opening net book value 1,161 1,466 - - - 2,627 Additions - - 245 - - 245 Disposals - (104 ) - - - (104 ) Depletion and amortization (210 ) - - - - (210 ) Exchange differences 52 66 - - - 118 Closing net book value 1,003 1,428 245 - - 2,676 At December 31, 2019 Cost 3,785 1,428 245 - - 5,458 Accumulated amortization (2,782 ) - - - - (2,782 ) 1,003 1,428 245 - - 2,676 Year ended December 31, 2020 Opening net book value 1,003 1,428 245 - - 2,676 Acquisitions - - 317 13,711 5,332 19,360 Additions - - - 45 32 77 Disposals - (1,348 ) - - - (1,348 ) Depletion and amortization (178 ) - - - - (178 ) Exchange differences (21 ) (80 ) 26 - - (76 ) Closing net book value 804 - 587 13,756 5,364 20,511 At December 31, 2020 Cost 3,721 - 587 13,756 5,364 23,428 Accumulated amortization (2,917 ) - - - - (2,917 ) 804 - 587 13,756 5,364 20,511 (1) On March 17, 2020, the Company entered into an agreement with Wallbridge (Note 6) in respect of the Beschefer Option Agreement, whereby the amended Option payments were deemed fully satisfied through the issuance of a total of 3,500,000 Wallbridge Shares and 500,000 warrants to purchase Wallbridge Shares at $1.00 for a period of five years from the date of issuance (collectively, the “Wallbridge Consideration”). In accordance with the Company’s farm-out accounting policy, the initial fair value of the Wallbridge Consideration was credited to the Beschefer Mineral Rights and the loss on disposal ($188) was recorded in the consolidated statement of comprehensive income (loss) for the twelve months ended December 31, 2020. (2) On September 24, 2019 the Company signed an option agreement (the “Globex Agreement”) with Globex Mining Enterprises Inc. (“Globex”) to acquire a 100% interest in the Braunsdorf exploration license for the Silver City Project in Saxony, Germany, pursuant to which the Company agreed to pay total aggregate consideration of C$500 in cash and issue common shares valued at C$1,600 over a period of three years. Upon completion of the payments and common share issuances the Company will grant Globex a gross metals royalty of 3% for precious metals and 2.5% for other metals, both of which may be reduced by 1% upon a payment of $1,500. Additional one-time payments of C$300 and C$700 will be made by the Company following any future announcement of a maiden resource on the property and upon achievement of commercial production from the project, respectively. The first issuance of 45,367 common shares (valued at C$225) and the first cash payment (C$100) were made on the effective date of the Globex Agreement and recorded as an addition to mineral rights ($245). On September 21, 2020, the second issuance of 65,657 common shares (valued at C$325) and the second cash payment (C$100) were made and recorded as an addition to mineral rights ($317). (3) On April 22, 2020, the Company acquired the Kilgore Gold Project as part of the Otis acquisition (Note 5). The Company has a 100% interest in the Kilgore Gold property located in Clark County, Idaho, which consisted of 614 federal lode mining claims unencumbered by any underlying royalties. In Q4 2020, the Company staked 175 new claims expanding the Kilgore property by 28%. (4) On April 22, 2020, the Company acquired the Oakley Project as part of the Otis acquisition (Note 5). The Oakley Project includes Blue Hill Creek, Matrix Creek, Cold Creek and other properties in Idaho, USA: |
Lease Obligations (Tables)
Lease Obligations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Presentation of leases for lessee [abstract] | |
Summary of Lease Obligations | 2020 2019 $ $ Total discounted lease obligations 830 1,277 Less: current portion of lease obligations (405 ) (489 ) Non-current of lease obligations 425 788 |
Schedule of the Lease Payments | Details of the lease payments are as follows: 2020 2019 $ $ Within 1 year 448 577 Between 1 and 5 years 455 940 Total undiscounted lease obligations 903 1,516 |
Provisions (Tables)
Provisions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Provisions [abstract] | |
Schedule of Provisions | Post-retirement Rehabilitation benefits (1) provision (2) Total $ $ $ Year ended December 31, 2019 Opening balance 684 1,532 2,216 Change in estimate (95 ) - (95 ) Accretion for the period 62 26 88 Exchange differences (34 ) 68 34 Closing Balance 617 1,626 2,243 Year ended December 31, 2020 Opening balance 617 1,626 2,243 Termination payments (113 ) - (113 ) Change in estimate 233 - 233 Accretion for the period 40 61 101 Exchange differences (125 ) (131 ) (256 ) Closing Balance 652 1,556 2,208 (1) Post-retirement benefits: The Company provides post-retirement benefits supplements as well as leaving indemnities to employees at the Mexican operations. Under Mexican labour law, the Company provides statutorily mandated severance benefits to its employees terminated under certain circumstances. Key financial assumptions used in the above estimate include an annual discount rate of 4.86% (December 31, 2019 – 6.8%), annual salary rate increase of 3.75% (December 31, 2019 – 3.75%) and minimum wage increase rate of 5.31% (December 31, 2019 – 5.31%) and the life of mine of approximately four years. During the year, the Company paid $453 in termination benefits, of which $113 was recorded against post-retirement benefits and $340 was recorded in the consolidated statement of comprehensive income (loss) for period ended December 31, 2020. (2) Rehabilitation provision: Key financial assumptions used in the above estimate include an annual discount rate of 4.73% (December 31, 2019 – 4.4%), Mexican inflation rate and the life of mine of approximately four years. The total undiscounted amount of estimated cash flows required to settle the Company’s obligations is $1,746 of which $892 relates to the Platosa mine and $854 relates to the Miguel Auza processing facility. |
Convertible Debentures (Tables)
Convertible Debentures (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Convertible Debentures Abstract | |
Summary of Debt Component | The Company elected to pay the first interest payment in common shares valued at C$754 ($588) on December 31, 2020. 2020 $ CAD $ USD Proceeds on issuance of Debenture 17,910 13,334 Transaction costs paid (768 ) (572 ) Portion allocated to equity - conversion option and other features (8,683 ) (6,464 ) Interest expense 1,594 1,222 Value of shares issued to settle interest payable (754 ) (588 ) Exchange differences - 351 Balance at December 31, 2020 9,299 7,283 |
Share Capital (Tables)
Share Capital (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of classes of share capital [abstract] | |
Schedule of Authorized Share Capital | The Company’s authorized share capital consists of an unlimited number of common shares. Number of shares (000’s) $ Year ended December 31, 2019 Opening balance 19,841 106,786 Shares issued on exercise of stock options 10 38 Shares issued on exercise of RSUs and DSUs 40 245 Shares issued on exercise of warrants 370 699 Shares issued from bought deal (1) 2,185 6,903 Value of shares issued in asset acquisition (2) 45 169 Balance at December 31, 2019 22,491 114,840 Year ended December 31, 2020 Opening balance 22,491 114,840 Shares issued on exercise of stock options 261 602 Shares issued on exercise of RSUs and DSUs 382 1,627 Shares issued on exercise of warrants 2 8 Shares issued on acquisition of Otis Gold Corp (3) 8,131 16,370 Shares issued as part of Credit Facility (4) 107 180 Shares issued to settle payables (5) 671 1,738 Value of shares issued in asset acquisition (2) 66 246 Shares issued to settle interest on convertible debentures (6) 228 588 Balance at December 31, 2020 32,339 136,199 (1) On August 27, 2019 the Company completed a public equity financing (the “2019 Bought Deal”) of 2,185,000 units (“2019 Public Units”) at a price of C$5.30 per Public Unit for gross proceeds of C$11,581 (the “2019 Offering”). Each 2019 Public Unit comprised one common share and one half-warrant (“$7.00 Warrant”) with each whole warrant entitling the holder to acquire a common share at a price of C$7.00 for a period of two years ending August 27, 2021. The Company issued 1,092,500 $7.00 warrants. Broker and underwriting fees of C$800 were paid in respect of the 2019 Bought Deal. The net proceeds of C$10,510 ($8,000) after transaction costs, were allocated proportionally between the fair values of the common shares and the $7.00 Warrants. (2) On September 24, 2019, the Company announced the Globex Agreement. The first issuance of 45,367 common shares (valued at C$225) and the first cash payment (C$100) were made on the effective date of the option agreement and recorded as an addition to mineral rights. On September 21, 2020, the second issuance of 65,657 common shares (valued at C$325) and the second cash payment (C$100) were made and recorded as an addition to mineral rights (Note 11). (3) On April 22, 2020, the Company completed the Otis Transaction (Note 5). Otis shareholders received 0.23 of a common share for each Otis common share held (the “Exchange Ratio”), resulting in the issuance of 8,130,630 common shares valued at the market price of C$2.85 per common share. (4) On March 16, 2020, the Company closed the Credit Facility (Note 14). In consideration for the Facility, Excellon issued 107,291 common shares to Sprott Lending. (5) During the second and third quarters of 2020, the Company issued 670,974 common shares in settlement of certain Otis transaction costs and Mexican trade payables totaling C$2,098, as approved by the TSX. An amount of $196 (C$261) was recorded in other expenses to reflect the difference between the market value of the shares issued and the carrying amount of the payables settled. (6) On December 31, 2020, the Company elected to pay the first interest payment on the Debentures (Note 16) in common shares valued at C$754 ($588). |
Schedule of Outstanding Number and Weighted Average Exercise Prices | The outstanding number and weighted average exercise prices of equity-settled Stock Options, Purchase Warrants, Deferred Share Units (“DSUs”) and Restricted Share Units (“RSUs”) are as follows: Options Warrants Options Outstanding Weighted Average Exercise Price (CAD) Warrants Outstanding Weighted Average Exercise Price (CAD) RSUs Outstanding DSUs Outstanding Outstanding at January 1, 2019 260,000 6.34 370,209 2.50 352,571 372,499 Granted/issued 241,000 4.68 1,092,500 7.00 369,795 95,073 Exercised/settled (10,000 ) 2.85 (370,209 ) 2.50 (39,833 ) - Expired (20,000 ) 5.78 - - - - Forfeited (10,000 ) 4.75 - - (110,047 ) - Outstanding at December 31, 2019 461,000 5.59 1,092,500 7.00 572,486 467,572 Exercisable at December 31, 2019 270,665 5.91 1,092,500 7.00 - - Outstanding at January 1, 2020 461,000 5.59 1,092,500 7.00 572,486 467,572 Granted/issued/acquired (Note 5) 1,002,395 3.34 1,448,488 5.23 337,331 217,264 Exercised/settled (260,596 ) 1.93 (2,400 ) 3.45 (224,750 ) (193,507 ) Expired (332,359 ) 5.20 - - (91,332 ) - Forfeited (23,004 ) 4.26 - - (128,223 ) - Outstanding at December 31, 2020 847,437 4.21 2,538,588 6.00 465,511 491,330 Exercisable at December 31, 2020 548,009 4.52 2,538,588 6.00 - - |
Schedule of Options Outstanding and Exercisable | Options outstanding and exercisable are as follows: Exercise Price Range (CAD) Stock Options Outstanding Weighted Average Remaining Contractual Life (years) Stock Options Exercisable Weighted Average $ 2.00 to $3.99 502,487 2.42 294,235 3.07 $ 4.00 to $5.99 243,950 3.19 152,774 4.75 $ 6.00 to $7.99 15,000 1.40 15,000 7.63 $ 8.00 to $9.99 86,000 1.59 86,000 8.53 847,437 2.54 548,009 4.52 |
Schedule of Measurement of the Option Fair Values at Grant Date | The inputs used in the measurement of the Option fair values at grant date were the following: 2020 2019 Fair value at grant date (CAD) $ 1.64 $ 2.90 Share price at grant date (CAD) $ 3.34 $ 4.65 Exercise price (CAD) $ 3.34 $ 4.65 Risk free interest rate 0.56 % 1.71 % Expected life of options in years 5.00 5.00 Expected volatility 74.81 % 77.63 % Expected dividend yield 0.00 % 0.00 % Estimated forfeiture rate 4.76 % 5.40 % |
Schedule of Share Based Compensation Expense | Compensation expense is recognized over the vesting period of the grant with the corresponding equity impact recorded in contributed surplus. Share-based compensation expense comprises the following: 2020 2019 $ (CAD) $(CAD) Stock options 634 559 RSU 1,085 456 DSU 835 448 2,554 1,463 |
Loss Per Share (Tables)
Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings per share [abstract] | |
Schedule of Loss Per Share | 2020 2019 Net loss for the year $ (16,020 ) $ (10,075 ) Weighted average number of shares outstanding - basic and diluted 28,881,800 20,674,866 Net loss per share - basic and diluted $ (0.55 ) $ (0.49 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of contingent liabilities [abstract] | |
Summary of Significant Unrecognized Commitments | The following table summarizes the Company’s significant unrecognized commitments as of December 31, 2020: 2021 2022 2023 2024 2025 Total $ $ $ $ $ $ Exploration License (Silver City Project) - Cash 78 156 - - - 234 Exploration License (Silver City Project) - Shares 332 488 - - - 819 Concession holding fees 648 689 632 709 709 3,387 1,057 1,333 632 709 709 4,441 |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue [abstract] | |
Schedule of Recognized Amounts Related to Revenue | The Company recognized the following amounts related to revenue: 2020 2019 $ $ Concentrate revenues from contracts with customers 25,970 26,017 Provisional pricing adjustments on concentrate sales (264 ) (468 ) Revenues from toll milling services 496 920 Total revenues 26,202 26,469 |
Schedule of Disaggregation of Revenue | The following table sets out the disaggregation of revenue by metal and form of sale: 2020 2019 $ $ Concentrate revenues from contracts with customers: Silver 16,963 13,693 Lead 3,571 4,422 Zinc 5,172 7,434 Revenues from toll milling services 496 920 Total revenues 26,202 26,469 |
Expenses By Nature (Tables)
Expenses By Nature (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Expenses By Nature Abstract | |
Schedule of Cost of Sales | (a) Cost of sales consist of the following: 2020 2019 $ $ Direct mining and milling costs (1) 19,604 22,541 Changes in inventories (2) 143 193 Depletion and amortization 4,649 4,708 Toll milling costs 234 482 Cost of sales 24,630 27,924 (1) Direct mining and milling costs include personnel, general and administrative, fuel, electricity, maintenance and repair costs as well as operating supplies, external services and transport fees. (2) Changes in inventories reflect the net cost of ore and concentrate (i) sold during the current period but produced in a previous period (an addition to direct mining and milling costs) or (ii) produced but not sold in the current period (a deduction from direct mining and milling costs). |
Schedule of Administrative Expenses | (b) Administrative expenses consist of the following: 2020 2019 $ $ Office, overhead and insurance 1,822 1,773 Salaries and wages 1,777 1,442 Corporate development and legal 794 182 Public company costs 237 52 Administrative expenses 4,630 3,448 |
Schedule of Other Expenses | (c) Other expenses consist of the following: 2020 2019 $ $ Unrealized gain on marketable securities (Note 6 ) (645 ) (289 ) Unrealized gain on purchase warrants (Note 6) (67 ) - Loss (gain) on disposal of assets (Note 11 ) 188 (19 ) Unrealized foreign exchange loss (gain) 653 (360 ) Realized foreign exchange loss (gain) 276 (115 ) Interest income (47 ) (60 ) Shares issued at a discount to settle payables 196 - Management fee income (Note 11 ) (95 ) - Other (86 ) 61 Other expenses, net 373 (782 ) |
Exploration Expense (Tables)
Exploration Expense (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
RSU. | |
Schedule of Exploration Expense | Exploration expenses were incurred on the following projects: 2020 2019 $ $ Platosa 1,037 2,965 Evolución 582 833 Silver City 1,672 55 Kilgore 741 - 4,032 3,853 |
Finance Expenses (Tables)
Finance Expenses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Finance Expenses | |
Schedule of Finance Expenses | Finance expenses consist of the following: 2020 2019 $ $ Interest expense - convertible debentures 1,222 - Interest expense - other 759 71 Rehabilitation provision - accretion 61 26 Post-retirement benefits - accretion 40 62 Gain on change in fair value of purchase warrant liabilities - (335 ) Unrealized loss (gain) on currency hedges 426 (119 ) Finance expense (income), net 2,508 (295 ) |
Income Tax (Tables)
Income Tax (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Major components of tax expense (income) [abstract] | |
Schedule of Provincial Income Tax Rates | The Company’s provision for (recovery of) income tax differs from the amount computed by applying the combined Canadian federal and provincial income tax rates to income (loss) before income tax as a result of the following: 2020 2019 $ $ Statutory tax rates 26.5 % 26.5 % Income tax (recovery) computed at the statutory rates (3,243 ) (2,399 ) Non-deductible items (1,996 ) 120 Change in tax benefit not recognized 9,098 2,933 Foreign tax differentials (355 ) (267 ) Other 112 735 Special mining royalty 167 (100 ) Provision for income taxes 3,783 1,022 |
Schedule of Provision for Income Taxes | Provision for income taxes consists of the following: 2020 2019 $ $ Current income taxes 305 299 Deferred income taxes 3,478 723 3,783 1,022 |
Schedule of Deferred Income Tax Assets (liabilities) | The following table reflects the Company’s deferred income tax assets (liabilities): 2020 2019 $ $ Non-capital losses carried forward 1,521 9,010 Resource related assets 1,285 1,061 Property, plant and equipment 2,079 (697 ) Deferred income and other 1 6 Accrued revenue 26 10 Prepaid expenses, deposits and other 233 1,504 Deferred tax assets 5,145 10,894 Prepaid expenses, deposits and other (611 ) (659 ) Special mining royalty (318 ) (152 ) Deferred tax liabilities (929 ) (811 ) Net deferred tax assets 4,216 10,083 |
Summary of Temporary Differences and Non-capital Losses | The following temporary differences and non-capital losses have not been recognized in the consolidated financial statements. 2020 2019 $ $ Non-capital losses carried forward 57,299 23,982 Capital losses 1,214 3,697 Resource related deductions 22,510 20,961 Share issuance costs 9 26 Property, plant and equipment 206 141 Prepaid expenses, deposits and other 2,160 1,522 83,398 50,330 |
Summary of Non-capital Losses | As at December 31, 2020, the Company has non-capital losses to be carried forward and applied against taxable income of future years. The non-capital losses have expiry dates as follows: 2020 2019 $ $ 2021 1,471 1,551 2022 - - 2023 - - 2024 and thereafter 62,678 52,466 64,149 54,017 |
Key Management Transactions (Ta
Key Management Transactions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of transactions between related parties [abstract] | |
Schedule of Key Management Transactions | Remuneration to directors and key management who have the authority and responsibility for planning, directing and continuing the activities of the Company: 2020 2019 $ $ Salaries, fees and benefits 1,510 1,227 Director’s fees 285 315 Shared-based payments 1,175 962 2,970 2,504 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of nature and extent of risks arising from financial instruments [abstract] | |
Schedule of Three Levels of Fair Value Hierarchy | The three levels of the fair value hierarchy are as follows: ● Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities; ● Level 2 – Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly; and ● Level 3 – Inputs that are not based on observable market data Fair value 2020 2019 hierarchy $ $ Financial assets Fair value through profit and loss Marketable securities Level 1 2,138 348 Purchase warrants Level 2 212 - Trade receivables Level 2 1,782 2,278 Forward foreign exchange contracts Level 2 21 432 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting | |
Schedule of Segment Reporting | MEXICO CORPORATE TOTAL 2020 2019 2020 2019 2020 2019 $ $ $ $ $ $ Property, plant and equipment 24,877 23,391 953 1,427 25,830 24,818 Capital expenditures (7,620 ) (5,719 ) (48 ) (1,068 ) (7,668 ) (6,787 ) Mineral rights 804 1,003 19,707 1,673 20,511 2,676 Total assets 63,062 47,981 10,217 7,601 73,279 55,582 Total liabilities 12,441 11,541 10,396 1,849 22,837 13,390 2020 2019 $ $ MEXICO Revenues 26,202 26,469 Cost of sales (24,630 ) (27,924 ) Exploration (1,619 ) (3,789 ) Other (expense) income (1,058 ) 826 Finance (expense) income (136 ) (40 ) Income tax expense (5,497 ) (928 ) Net loss (6,738 ) (5,386 ) CORPORATE Corporate administrative expenses (6,896 ) (4,823 ) Exploration (2,413 ) (64 ) Other (expense) income 685 (44 ) Finance (expense) income (2,372 ) 335 Income tax recovery (expense) 1,714 (93 ) Net loss (9,282 ) (4,689 ) Net Loss (16,020 ) (10,075 ) |
Significant Accounting Polici_3
Significant Accounting Policies (Details Narrative) | 12 Months Ended |
Dec. 31, 2020 | |
Statement Line Items [Line Items] | |
Percentage of ownership in subsidiary | 100.00% |
Percentage of mexican royalty | 7.50% |
Percentage of extraordinary royalty | 0.50% |
Mining Properties [Member] | Bottom of range [member] | |
Statement Line Items [Line Items] | |
Remaining useful life of asset | 3 years |
Mining Properties [Member] | Top of range [member] | |
Statement Line Items [Line Items] | |
Remaining useful life of asset | 10 years |
Buildings [member] | |
Statement Line Items [Line Items] | |
Remaining useful life of asset | 20 years |
Processing Equipment [member] | Bottom of range [member] | |
Statement Line Items [Line Items] | |
Remaining useful life of asset | 4 years |
Processing Equipment [member] | Top of range [member] | |
Statement Line Items [Line Items] | |
Remaining useful life of asset | 8 years |
Acquisition of Otis Gold Corp_2
Acquisition of Otis Gold Corp. (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | Apr. 22, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Canadian Dollars [Member] | |||
Statement Line Items [Line Items] | |||
Price per share | $ 1.64 | $ 2.90 | |
Otis Gold Corp [Member] | Canadian Dollars [Member] | |||
Statement Line Items [Line Items] | |||
Price per share | $ 2.85 | ||
Intercompany loan | $ 500 | ||
Acquisition related transaction costs | $ 856 | ||
Otis Gold Corp [Member] | Exchange Ratio [Member] | |||
Statement Line Items [Line Items] | |||
Price per share | $ 0.046 | ||
Shares issued during the period for acquisition | 8,130,630 | ||
Shares issued during the period for acquisition, value | $ 16,370 | ||
Otis Gold Corp [Member] | Replacement Options [Member] | |||
Statement Line Items [Line Items] | |||
Issuance of stock option | 531,895 | ||
Otis Gold Corp [Member] | Replacement Warrants [Member] | |||
Statement Line Items [Line Items] | |||
Issuance of warrants | 305,060 | ||
Otis Gold Corp [Member] | Replacement Warrants [Member] | Canadian Dollars [Member] | |||
Statement Line Items [Line Items] | |||
Exercise price of warrants | $ 3.30 |
Acquisition of Otis Gold Corp_3
Acquisition of Otis Gold Corp. - Schedule of Purchase Price of Acquisition (Details) - USD ($) $ in Thousands | Apr. 22, 2020 | Dec. 31, 2020 |
Statement Line Items [Line Items] | ||
Transaction costs | $ (572) | |
Otis Gold Corp [Member] | ||
Statement Line Items [Line Items] | ||
Common shares of Excellon issued | $ 16,370 | |
Fair value of Excellon options issued | 361 | |
Fair value of Excellon warrants issued | 233 | |
Transaction costs | 1,723 | |
Total purchase price | 18,687 | |
Cash | 51 | |
Tax receivables, prepaid expenses and other assets | 24 | |
Property, plant and equipment | 35 | |
Reclamation deposits | 53 | |
Right of use assets | 48 | |
Mineral rights - Oakley Project | 5,332 | |
Mineral rights - Kilgore Gold Project | 13,711 | |
Trade payables | (166) | |
Convertible loan from Excellon | (353) | |
Current and long-term lease liabilities | (48) | |
Total assets and liabilities assumed | $ 18,687 |
Acquisition of Otis Gold Corp_4
Acquisition of Otis Gold Corp. - Schedule of Fair Value of Warrant Assumption Model Pricing (Details) | 12 Months Ended |
Dec. 31, 2020$ / shares | |
Statement Line Items [Line Items] | |
Volatility, minimum | 72.90% |
Volatility, maximum | 87.90% |
Risk-free rate, minimum | 0.66% |
Risk-free rate, maximum | 0.75% |
Warrants [Member] | |
Statement Line Items [Line Items] | |
Expected life (years) | 1 year 10 months 25 days |
Volatility | 79.10% |
Risk-free rate | 0.66% |
Canadian Dollars [Member] | Warrants [Member] | |
Statement Line Items [Line Items] | |
Exercise price | $ 3.30 |
Bottom of range [member] | |
Statement Line Items [Line Items] | |
Expected life (years) | 2 months 23 days |
Bottom of range [member] | Canadian Dollars [Member] | |
Statement Line Items [Line Items] | |
Exercise price | $ 1.10 |
Top of range [member] | |
Statement Line Items [Line Items] | |
Expected life (years) | 4 years |
Top of range [member] | Canadian Dollars [Member] | |
Statement Line Items [Line Items] | |
Exercise price | $ 7.65 |
Marketable Securities and War_3
Marketable Securities and Warrants (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | Mar. 17, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Warrants [Member] | Wallbridge Mining Company Ltd. [Member] | Canadian Dollars [Member] | ||||
Statement Line Items [Line Items] | ||||
Warrant strike price | $ 0.78 | |||
Warrants [Member] | Wallbridge Mining Company Ltd. [Member] | Risk Free Rate [Member] | ||||
Statement Line Items [Line Items] | ||||
Warrant measurement input | 0.0033 | |||
Warrants [Member] | Wallbridge Mining Company Ltd. [Member] | Volatility [Member] | ||||
Statement Line Items [Line Items] | ||||
Warrant measurement input | 1.07 | |||
Option Agreement [Member] | Wallbridge Mining Company Ltd. [Member] | ||||
Statement Line Items [Line Items] | ||||
Initial consideration of marketable securities | 500,000 | |||
Amended Agreement [Member] | Warrants [Member] | Wallbridge Mining Company Ltd. [Member] | ||||
Statement Line Items [Line Items] | ||||
Unrealized gain on revaluation | $ 712 | $ 289 | ||
Amended Agreement [Member] | Wallbridge Mining Company Ltd. [Member] | ||||
Statement Line Items [Line Items] | ||||
Additional number of shares received | 3,000,000 | |||
Warrant term | 5 years | |||
Amended Agreement [Member] | Wallbridge Mining Company Ltd. [Member] | Warrants [Member] | ||||
Statement Line Items [Line Items] | ||||
Warrant shares | 500,000 | |||
Amended Agreement [Member] | Wallbridge Mining Company Ltd. [Member] | Warrants [Member] | Canadian Dollars [Member] | ||||
Statement Line Items [Line Items] | ||||
Warrant strike price | $ 1 |
Marketable Securities and War_4
Marketable Securities and Warrants - Schedule of Fair Value of Marketable Securities and Warrants (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current and long-term lease liabilities. | ||
Marketable securities at fair value | $ 2,138 | $ 348 |
Warrants at fair value | 212 | |
Marketable Securities and Warrants | $ 2,350 | $ 348 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Statement Line Items [Line Items] | ||
Inventories | $ 2,385 | $ 2,615 |
Ore Stockpiles [Member] | ||
Statement Line Items [Line Items] | ||
Inventories | 463 | 186 |
Concentrate Inventory [Member] | ||
Statement Line Items [Line Items] | ||
Inventories | 4 | 588 |
Production Spare Parts [Member] | ||
Statement Line Items [Line Items] | ||
Inventories | 2,441 | 2,402 |
Obsolescence Provision - Spare Parts [Member] | ||
Statement Line Items [Line Items] | ||
Inventories | $ (523) | $ (561) |
Other Current Assets - Summary
Other Current Assets - Summary of Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |||
Income taxes recoverable | $ 145 | $ 415 | |
Prepaid expenses | 340 | 737 | |
Restricted cash | 765 | ||
Forward foreign exchange contracts | [1] | 21 | 432 |
Others | 52 | 15 | |
Other Current Assets | $ 1,323 | $ 1,599 | |
[1] | Comparative period reclassified from other payables to match current-period other current asset classification. |
Property, Plant and Equipment -
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Statement Line Items [Line Items] | |||
Cost | $ 24,818 | $ 52,274 | |
Accumulated amortization | (36,720) | (30,527) | |
Opening net book value | 24,818 | 21,747 | |
Additions | 7,668 | [1] | 6,787 |
Reclassification | |||
Depletion and amortization | (4,792) | (4,731) | |
Exchange differences | (1,864) | [2] | 1,015 |
Cost | 25,830 | 24,818 | |
Accumulated amortization | (40,383) | (36,720) | |
Closing net book value | 25,830 | 24,818 | |
Mining Properties [Member] | |||
Statement Line Items [Line Items] | |||
Cost | 31,774 | 29,212 | |
Accumulated amortization | (20,198) | (17,130) | |
Opening net book value | 11,576 | 12,082 | |
Additions | 1,416 | [1] | 1,202 |
Reclassification | 4,046 | 33 | |
Depletion and amortization | (2,191) | (2,257) | |
Exchange differences | (377) | [2] | 516 |
Cost | 36,400 | 31,774 | |
Accumulated amortization | (21,930) | (20,198) | |
Closing net book value | 14,470 | 11,576 | |
Mining Equipment [Member] | |||
Statement Line Items [Line Items] | |||
Cost | 16,887 | 15,938 | |
Accumulated amortization | (11,267) | (8,860) | |
Opening net book value | 5,620 | 7,078 | |
Additions | 1,873 | [1] | 847 |
Reclassification | 3,333 | (640) | |
Depletion and amortization | (2,101) | (1,955) | |
Exchange differences | 164 | [2] | 290 |
Cost | 21,576 | 16,887 | |
Accumulated amortization | (12,687) | (11,267) | |
Closing net book value | 8,889 | 5,620 | |
Processing Equipment [member] | |||
Statement Line Items [Line Items] | |||
Cost | 6,160 | 5,756 | |
Accumulated amortization | (5,036) | (4,537) | |
Opening net book value | 1,124 | 1,219 | |
Additions | 673 | [1] | 111 |
Reclassification | 33 | ||
Depletion and amortization | (298) | (291) | |
Exchange differences | (503) | [2] | 52 |
Cost | 6,075 | 6,160 | |
Accumulated amortization | (5,079) | (5,036) | |
Closing net book value | 996 | 1,124 | |
Assets Under Construction [Member] | |||
Statement Line Items [Line Items] | |||
Cost | 5,071 | 1,368 | |
Accumulated amortization | |||
Opening net book value | 5,071 | 1,368 | |
Additions | 3,658 | [1] | 3,621 |
Reclassification | (7,325) | (66) | |
Depletion and amortization | |||
Exchange differences | (882) | [2] | 148 |
Cost | 522 | 5,071 | |
Accumulated amortization | |||
Closing net book value | 522 | 5,071 | |
Right of Use Assets [Member] | |||
Statement Line Items [Line Items] | |||
Cost | 61,538 | ||
Accumulated amortization | (219) | ||
Opening net book value | 1,427 | ||
Additions | 48 | [1] | 1,006 |
Reclassification | (54) | 640 | |
Depletion and amortization | (202) | (228) | |
Exchange differences | (266) | [2] | 9 |
Cost | 1,640 | 61,538 | |
Accumulated amortization | (687) | (219) | |
Closing net book value | $ 953 | $ 1,427 | |
[1] | During the year ended December 31, 2020, the Company incurred $3,658 in sustaining capital expenditures initially recorded as assets under construction, primarily related to the expansion of the dewatering system at the Platosa Mine and a raise of the tailings management facility at the Miguel Auza processing facility. All assets that have been commissioned are reclassified to their associated asset class. | ||
[2] | Unrealized foreign exchange losses on translation of Mexican peso assets at the period-end exchange rate. |
Property, Plant and Equipment_2
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Sustaining capital expenditures incurred | $ 3,658 |
Mineral Rights (Details Narrati
Mineral Rights (Details Narrative) | Dec. 31, 2020 |
Oakley Property [Member] | |
Statement Line Items [Line Items] | |
Property expanding percentage | 56.00% |
Mineral Rights - Schedule of Mi
Mineral Rights - Schedule of Mineral Rights (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Statement Line Items [Line Items] | |||
Cost, opening net book value | $ 5,458 | $ 5,087 | |
Accumulated amortization, opening net book value | (2,782) | (2,460) | |
Opening net book value | 2,676 | 2,627 | |
Additions | 77 | 245 | |
Disposals | (1,348) | (104) | |
Depletion and amortization | (178) | (210) | |
Exchange differences | (76) | 118 | |
Acquisitions | 19,360 | ||
Cost, closing net book value | 23,428 | 5,458 | |
Accumulated amortization, closing net book value | (2,917) | (2,782) | |
Closing net book value | 20,511 | 2,676 | |
Mineral Rights Platosa (Mexico) [Member] | |||
Statement Line Items [Line Items] | |||
Cost, opening net book value | 3,785 | 3,621 | |
Accumulated amortization, opening net book value | (2,782) | (2,460) | |
Opening net book value | 1,003 | 1,161 | |
Additions | |||
Disposals | |||
Depletion and amortization | (178) | (210) | |
Exchange differences | (21) | 52 | |
Acquisitions | |||
Cost, closing net book value | 3,721 | 3,785 | |
Accumulated amortization, closing net book value | (2,917) | (2,782) | |
Closing net book value | 804 | 1,003 | |
Mineral Rights Beschefer (Canada) [Member] | |||
Statement Line Items [Line Items] | |||
Cost, opening net book value | [1] | 1,428 | 1,466 |
Accumulated amortization, opening net book value | [1] | ||
Opening net book value | [1] | 1,428 | 1,466 |
Additions | [1] | ||
Disposals | [1] | (1,348) | (104) |
Depletion and amortization | [1] | ||
Exchange differences | [1] | (80) | 66 |
Acquisitions | [1] | ||
Cost, closing net book value | [1] | 1,428 | |
Accumulated amortization, closing net book value | [1] | ||
Closing net book value | [1] | 1,428 | |
Mineral Rights Silver City (Germany) [Member] | |||
Statement Line Items [Line Items] | |||
Cost, opening net book value | [2] | 245 | |
Accumulated amortization, opening net book value | [2] | ||
Opening net book value | [2] | 245 | |
Additions | [2] | 245 | |
Disposals | [2] | ||
Depletion and amortization | [2] | ||
Exchange differences | [2] | 26 | |
Acquisitions | [2] | 317 | |
Cost, closing net book value | [2] | 587 | 245 |
Accumulated amortization, closing net book value | [2] | ||
Closing net book value | [2] | 587 | 245 |
Mineral Rights Kilgore (Idaho) [Member] | |||
Statement Line Items [Line Items] | |||
Cost, opening net book value | [3] | ||
Accumulated amortization, opening net book value | [3] | ||
Opening net book value | [3] | ||
Additions | [3] | 45 | |
Disposals | [3] | ||
Depletion and amortization | [3] | ||
Exchange differences | [3] | ||
Acquisitions | [3] | 13,711 | |
Cost, closing net book value | [3] | 13,756 | |
Accumulated amortization, closing net book value | [3] | ||
Closing net book value | [3] | 13,756 | |
Mineral Rights Okaley (Idaho) [Member] | |||
Statement Line Items [Line Items] | |||
Cost, opening net book value | [4] | ||
Accumulated amortization, opening net book value | [4] | ||
Opening net book value | [4] | ||
Additions | [4] | 32 | |
Disposals | [4] | ||
Depletion and amortization | [4] | ||
Exchange differences | [4] | ||
Acquisitions | [4] | 5,332 | |
Cost, closing net book value | [4] | 5,364 | |
Accumulated amortization, closing net book value | [4] | ||
Closing net book value | [4] | $ 5,364 | |
[1] | On March 17, 2020, the Company entered into an agreement with Wallbridge (Note 6) in respect of the Beschefer Option Agreement, whereby the amended Option payments were deemed fully satisfied through the issuance of a total of 3,500,000 Wallbridge Shares and 500,000 warrants to purchase Wallbridge Shares at $1.00 for a period of five years from the date of issuance (collectively, the "Wallbridge Consideration"). In accordance with the Company's farm-out accounting policy, the initial fair value of the Wallbridge Consideration was credited to the Beschefer Mineral Rights and the loss on disposal ($188) was recorded in the consolidated statement of comprehensive income (loss) for the twelve months ended December 31, 2020. | ||
[2] | On September 24, 2019 the Company signed an option agreement (the "Globex Agreement") with Globex Mining Enterprises Inc. ("Globex") to acquire a 100% interest in the Braunsdorf exploration license for the Silver City Project in Saxony, Germany, pursuant to which the Company agreed to pay total aggregate consideration of C$500 in cash and issue common shares valued at C$1,600 over a period of three years. Upon completion of the payments and common share issuances the Company will grant Globex a gross metals royalty of 3% for precious metals and 2.5% for other metals, both of which may be reduced by 1% upon a payment of $1,500. Additional one-time payments of C$300 and C$700 will be made by the Company following any future announcement of a maiden resource on the property and upon achievement of commercial production from the project, respectively. The first issuance of 45,367 common shares (valued at C$225) and the first cash payment (C$100) were made on the effective date of the Globex Agreement and recorded as an addition to mineral rights ($245). On September 21, 2020, the second issuance of 65,657 common shares (valued at C$325) and the second cash payment (C$100) were made and recorded as an addition to mineral rights ($317). | ||
[3] | On April 22, 2020, the Company acquired the Kilgore Gold Project as part of the Otis acquisition (Note 5). The Company has a 100% interest in the Kilgore Gold property located in Clark County, Idaho, which consisted of 614 federal lode mining claims unencumbered by any underlying royalties. In Q4 2020, the Company staked 175 new claims expanding the Kilgore property by 28%. | ||
[4] | On April 22, 2020, the Company acquired the Oakley Project as part of the Otis acquisition (Note 5). The Oakley Project includes Blue Hill Creek, Matrix Creek, Cold Creek and other properties in Idaho, USA:Blue Hill Creek ("BHC") - The Company has a 100% interest in the Blue Hill Creek property located in Cassia County, Idaho; the property consists of 44 unpatented federal lode mining claims and an adjacent 80 acre Idaho state lease, subject to a net smelter returns royalty ("NSR") of 2% on production of gold from BHC.Matrix Creek - The Company has a 100% interest in the Matrix Creek property, located in Cassia County, Idaho; the property consists of 61 unpatented federal lode mining claims and a 320 acre mineral lease, subject to an NSR of 2% on production of gold from Matrix Creek. The 2.0% NSR at BHC and Matrix Creek can be purchased for a total of $2,000.Cold Creek and other properties - The Company has a 100% interest in the Cold Creek property located in Cassia County, Idaho, which consists of 85 unpatented federal lode mining claims, and 32 other unpatented federal lode mining claims, all located in Cassia County, Idaho and located within the area known as the Oakley Project.On February 26, 2020, Otis entered into a definitive option agreement with Centerra Gold Inc. ("Centerra") whereby Centerra may earn up to a 70% interest in the Oakley Project in exchange for total exploration expenditures of $7,000 and cash payments of $550 over a six year period. Details are as follows:Centerra can earn a 51% interest in Oakley (the "First Option") by incurring $4,500 in exploration expenditures and by making cash payments of $250 over a three-year period as follows:Cash payment of $75 (received by Otis) on signing and commitment to spend a minimum of $500 on exploration expenditures in Year One;Cash payment of $75 (received in February 2021) and $1,500 in exploration expenditures in Year Two; and Cash payment of $100 and $2,500 in exploration expenditures in Year Three. Centerra will then have an option to acquire a further 19% of the Oakley Project, for a total of 70% (the "Second Option"), by incurring an additional $3,000 in exploration expenditures and making a cash payment of $300 over three years.During the term of the Oakley Agreement, Centerra will be the Operator of the project. Excellon will act as Project Manager and will earn 10% of the approved exploration expenditures for technical oversight and project management.Subsequent to either the First Option or the Second Option, at Centerra's option, the parties shall form a joint venture and fund expenditures going forward on a pro rata basis.Should Excellon's interest fall below 10% during the joint venture, that interest will automatically convert to a 2% NSR that is not subject to a buyback provision. |
Mineral Rights - Schedule of _2
Mineral Rights - Schedule of Mineral Rights (Details) (Parenthetical) - USD ($) $ / shares in Units, $ in Thousands | Sep. 21, 2020 | Apr. 22, 2020 | Mar. 17, 2020 | Feb. 26, 2020 | Sep. 24, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement Line Items [Line Items] | ||||||||
Additions | $ 77 | $ 245 | ||||||
Mineral Rights Beschefer (Canada) [Member] | ||||||||
Statement Line Items [Line Items] | ||||||||
Additions | [1] | |||||||
Beschefer Option Agreement [Member] | Wallbridge Mining Company Ltd. [Member] | ||||||||
Statement Line Items [Line Items] | ||||||||
Additional number of shares received | 3,500,000 | |||||||
Warrants | 500,000 | |||||||
Exercise price of warrants | $ 1 | |||||||
Warrant term | 5 years | |||||||
Beschefer Option Agreement [Member] | Wallbridge Mining Company Ltd. [Member] | Mineral Rights Beschefer (Canada) [Member] | ||||||||
Statement Line Items [Line Items] | ||||||||
Loss on disposal | $ 188 | |||||||
Globex Agreement [Member] | Globex Mining Enterprises Inc [Member] | Mineral Rights Silver City (Germany) [Member] | ||||||||
Statement Line Items [Line Items] | ||||||||
Acquisition of equity, percentage | 100.00% | |||||||
Royalty for precious metals | 3.00% | |||||||
Royalty for other metals | 2.50% | |||||||
Reduction on royalty description | Reduced by 1% upon a payment of $1,500 | |||||||
Addition one time payments | Additional one-time payments of C$300 and C$700 will be made by the Company following any future announcement of a maiden resource on the property and upon achievement of commercial production from the project, respectively. | |||||||
Globex Agreement [Member] | Globex Mining Enterprises Inc [Member] | Mineral Rights Silver City (Germany) [Member] | First Issuance [Member] | ||||||||
Statement Line Items [Line Items] | ||||||||
Additions | $ 245 | |||||||
Shares issued during the period for acquisition | 45,367 | |||||||
Globex Agreement [Member] | Globex Mining Enterprises Inc [Member] | Mineral Rights Silver City (Germany) [Member] | Second Issuance [Member] | ||||||||
Statement Line Items [Line Items] | ||||||||
Additions | $ 317 | |||||||
Shares issued during the period for acquisition | 65,657 | |||||||
Globex Agreement [Member] | Globex Mining Enterprises Inc [Member] | Mineral Rights Silver City (Germany) [Member] | Canadian Dollars [Member] | ||||||||
Statement Line Items [Line Items] | ||||||||
Payment for acquisition | $ 500 | |||||||
Shares issued during the period for acquisition, value | 1,600 | |||||||
Globex Agreement [Member] | Globex Mining Enterprises Inc [Member] | Mineral Rights Silver City (Germany) [Member] | Canadian Dollars [Member] | First Issuance [Member] | ||||||||
Statement Line Items [Line Items] | ||||||||
Payment for acquisition | 100 | |||||||
Shares issued during the period for acquisition, value | $ 225 | |||||||
Globex Agreement [Member] | Globex Mining Enterprises Inc [Member] | Mineral Rights Silver City (Germany) [Member] | Canadian Dollars [Member] | Second Issuance [Member] | ||||||||
Statement Line Items [Line Items] | ||||||||
Payment for acquisition | $ 100 | |||||||
Shares issued during the period for acquisition, value | $ 325 | |||||||
Kilgore Gold Project [Member] | Otis Gold Corp [Member] | ||||||||
Statement Line Items [Line Items] | ||||||||
Acquisition of equity, percentage | 100.00% | |||||||
Project descriptions | The Company has a 100% interest in the Kilgore Gold property located in Clark County, Idaho, which consisted of 614 federal lode mining claims unencumbered by any underlying royalties. In Q4 2020, the Company staked 175 new claims expanding the Kilgore property by 28%. | |||||||
Oakley Project [Member] | Blue Hill Creek [Member] | Otis Gold Corp [Member] | ||||||||
Statement Line Items [Line Items] | ||||||||
Acquisition of equity, percentage | 100.00% | |||||||
Project descriptions | The Company has a 100% interest in the Blue Hill Creek property located in Cassia County, Idaho; the property consists of 44 unpatented federal lode mining claims and an adjacent 80 acre Idaho state lease, subject to a net smelter returns royalty ("NSR") of 2% on production of gold from BHC. | |||||||
Oakley Project [Member] | Matrix Creek [Member] | Otis Gold Corp [Member] | ||||||||
Statement Line Items [Line Items] | ||||||||
Acquisition of equity, percentage | 100.00% | |||||||
Project descriptions | The Company has a 100% interest in the Matrix Creek property, located in Cassia County, Idaho; the property consists of 61 unpatented federal lode mining claims and a 320 acre mineral lease, subject to an NSR of 2% on production of gold from Matrix Creek. The 2.0% NSR at BHC and Matrix Creek can be purchased for a total of $2,000. | |||||||
Oakley Project [Member] | Cold Creek [Member] | Otis Gold Corp [Member] | ||||||||
Statement Line Items [Line Items] | ||||||||
Acquisition of equity, percentage | 100.00% | |||||||
Definitive Option Agreement [Member] | Centerra Gold Inc [Member] | Otis Gold Corp [Member] | ||||||||
Statement Line Items [Line Items] | ||||||||
Payment for acquisition | $ 550 | |||||||
Project descriptions | Otis entered into a definitive option agreement with Centerra Gold Inc. ("Centerra") whereby Centerra may earn up to a 70% interest in the Oakley Project in exchange for total exploration expenditures of $7,000 and cash payments of $550 over a six year period. Details are as follows: Centerra can earn a 51% interest in Oakley (the "First Option") by incurring $4,500 in exploration expenditures and by making cash payments of $250 over a three-year period as follows: Cash payment of $75 (received by Otis) on signing and commitment to spend a minimum of $500 on exploration expenditures in Year One; Cash payment of $75 (received in February 2021) and $1,500 in exploration expenditures in Year Two; and Cash payment of $100 and $2,500 in exploration expenditures in Year Three. Centerra will then have an option to acquire a further 19% of the Oakley Project, for a total of 70% (the "Second Option"), by incurring an additional $3,000 in exploration expenditures and making a cash payment of $300 over three years. During the term of the Oakley Agreement, Centerra will be the Operator of the project. Excellon will act as Project Manager and will earn 10% of the approved exploration expenditures for technical oversight and project management. Subsequent to either the First Option or the Second Option, at Centerra's option, the parties shall form a joint venture and fund expenditures going forward on a pro rata basis. Should Excellon's interest fall below 10% during the joint venture, that interest will automatically convert to a 2% NSR that is not subject to a buyback provision. | |||||||
Exploration expenditures | $ 7,000 | |||||||
[1] | On March 17, 2020, the Company entered into an agreement with Wallbridge (Note 6) in respect of the Beschefer Option Agreement, whereby the amended Option payments were deemed fully satisfied through the issuance of a total of 3,500,000 Wallbridge Shares and 500,000 warrants to purchase Wallbridge Shares at $1.00 for a period of five years from the date of issuance (collectively, the "Wallbridge Consideration"). In accordance with the Company's farm-out accounting policy, the initial fair value of the Wallbridge Consideration was credited to the Beschefer Mineral Rights and the loss on disposal ($188) was recorded in the consolidated statement of comprehensive income (loss) for the twelve months ended December 31, 2020. |
Trade and Other Payables (Detai
Trade and Other Payables (Details Narrative) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Statement Line Items [Line Items] | ||
Accounts payable | $ 4,252 | $ 4,672 |
Accruals and other payables | 3,920 | 2,460 |
Mexico [Member] | ||
Statement Line Items [Line Items] | ||
Accounts payable | 2,429 | |
Top of range [member] | ||
Statement Line Items [Line Items] | ||
Accounts payable | $ 8,172 | $ 7,132 |
Lease Obligations (Details Narr
Lease Obligations (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Presentation of leases for lessee [abstract] | ||
Interest expense on the lease liabilities | $ 69 | $ 30 |
Lease Obligations - Summary of
Lease Obligations - Summary of Lease Obligations (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Presentation of leases for lessee [abstract] | ||
Total discounted lease obligations | $ 830 | $ 1,277 |
Less: current portion of lease obligations | (405) | (489) |
Non-current of lease obligations | $ 425 | $ 788 |
Lease Obligations - Schedule of
Lease Obligations - Schedule of the Lease Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Statement Line Items [Line Items] | ||
Total undiscounted lease obligations | $ 903 | $ 1,516 |
Within 1 Year [Member] | ||
Statement Line Items [Line Items] | ||
Total undiscounted lease obligations | 448 | 577 |
Between 1 and 5 Years [Member] | ||
Statement Line Items [Line Items] | ||
Total undiscounted lease obligations | $ 455 | $ 940 |
Credit Facility (Details Narrat
Credit Facility (Details Narrative) - Sprott Private Resource Lending II [Member] $ in Thousands | Mar. 16, 2020USD ($)shares | Mar. 16, 2020USD ($)shares |
Statement Line Items [Line Items] | ||
Number of common stock issued for credit facility | 107,291 | |
Bridge-Loan Credit Facility [Member] | ||
Statement Line Items [Line Items] | ||
Debt instrument | $ | $ 6,000 | $ 6,000 |
Loan interest rate | 10.00% | 10.00% |
Number of common stock issued for credit facility | 107,291 |
Provisions - Schedule of Provis
Provisions - Schedule of Provisions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Statement Line Items [Line Items] | |||
Opening balance | $ 2,243 | $ 2,216 | |
Change in estimate | 233 | (95) | |
Accretion for the period | 101 | 88 | |
Exchange differences | (256) | 34 | |
Termination payments | (113) | ||
Closing Balance | 2,208 | 2,243 | |
Post-retirement Benefits [Member] | |||
Statement Line Items [Line Items] | |||
Opening balance | [1] | 617 | 684 |
Change in estimate | [1] | 233 | (95) |
Accretion for the period | [1] | 40 | 62 |
Exchange differences | [1] | (125) | (34) |
Termination payments | [1] | (113) | |
Closing Balance | [1] | 652 | 617 |
Rehabilitation Provision [Member] | |||
Statement Line Items [Line Items] | |||
Opening balance | [2] | 1,626 | 1,532 |
Change in estimate | [2] | ||
Accretion for the period | [2] | 61 | 26 |
Exchange differences | [2] | (131) | 68 |
Termination payments | [2] | ||
Closing Balance | [2] | $ 1,556 | $ 1,626 |
[1] | Post-retirement benefits: The Company provides post-retirement benefits supplements as well as leaving indemnities to employees at the Mexican operations. Under Mexican labour law, the Company provides statutorily mandated severance benefits to its employees terminated under certain circumstances. Key financial assumptions used in the above estimate include an annual discount rate of 4.86% (December 31, 2019 - 6.8%), annual salary rate increase of 3.75% (December 31, 2019 - 3.75%) and minimum wage increase rate of 5.31% (December 31, 2019 - 5.31%) and the life of mine of approximately four years.During the year, the Company paid $453 in termination benefits, of which $113 was recorded against post-retirement benefits and $340 was recorded in the consolidated statement of comprehensive income (loss) for period ended December 31, 2020. | ||
[2] | Rehabilitation provision: Key financial assumptions used in the above estimate include an annual discount rate of 4.73% (December 31, 2019 - 4.4%), Mexican inflation rate and the life of mine of approximately four years. The total undiscounted amount of estimated cash flows required to settle the Company's obligations is $1,746 of which $892 relates to the Platosa mine and $854 relates to the Miguel Auza processing facility. |
Provisions - Schedule of Prov_2
Provisions - Schedule of Provisions (Details) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Statement Line Items [Line Items] | ||
Post-retirement benefits | $ 113 | |
Post-retirement Benefits [Member] | ||
Statement Line Items [Line Items] | ||
Expected annual discount rate | 4.86% | 6.80% |
Expected annual salary rate increase | 3.75% | 3.75% |
Minimum wage increase rate | 5.31% | 5.31% |
Life of mine | 4 years | |
Termination benefits | $ 453 | |
Post-retirement benefits | $ 340 | |
Rehabilitation Provision [Member] | ||
Statement Line Items [Line Items] | ||
Expected annual discount rate | 4.73% | 4.40% |
Life of mine | 4 years | |
Undiscounted amount of obligations | $ 1,746 | |
Rehabilitation Provision [Member] | Platosa Mine [Member] | ||
Statement Line Items [Line Items] | ||
Undiscounted amount of obligations | 892 | |
Rehabilitation Provision [Member] | Miguel Auza [Member] | ||
Statement Line Items [Line Items] | ||
Undiscounted amount of obligations | $ 854 |
Convertible Debentures (Details
Convertible Debentures (Details Narrative) $ / shares in Units, $ in Thousands | Jul. 30, 2020USD ($)shares$ / shares | Dec. 31, 2020USD ($) | Dec. 31, 2020USD ($) | |
Statement Line Items [Line Items] | ||||
Proceeds from convertible debentures | $ 13,334 | |||
Transaction costs | (572) | |||
Interest expense | 1,222 | |||
Convertible debentures, interest payable settled with shares | $ 588 | 588 | [1] | |
Canadian Dollars [Member] | ||||
Statement Line Items [Line Items] | ||||
Proceeds from convertible debentures | 17,910 | |||
Transaction costs | (768) | |||
Interest expense | 1,594 | |||
Convertible debentures, interest payable settled with shares | $ 754 | 754 | ||
Secured Convertible Debentures [Member] | ||||
Statement Line Items [Line Items] | ||||
Debt term | 36 months | |||
Debt annual interest rate | 5.75% | |||
Debt effective annual rate | 10.00% | |||
Warrants to purchase common stock | shares | 1,006,542 | |||
Debt maturity date | July 30, 2022 | |||
Warrant expiration date | Jul. 30, 2023 | |||
Proceeds from debentures | $ 12,800 | |||
Transaction costs | 572 | |||
Fair value of debt | 6,298 | |||
Residual portion of convertible option | 4,751 | |||
Deferred tax recovery | $ 1,713 | |||
Interest expense | 1,222 | |||
Convertible debentures, interest payable settled with shares | 588 | |||
Secured Convertible Debentures [Member] | Broker Warrant [Member] | ||||
Statement Line Items [Line Items] | ||||
Warrant expiration date | Jul. 30, 2023 | |||
Warrants granted | shares | 136,887 | |||
Secured Convertible Debentures [Member] | Canadian Dollars [Member] | ||||
Statement Line Items [Line Items] | ||||
Proceeds from convertible debentures | $ 17,910 | |||
Debt conversion price | $ / shares | $ 5.30 | |||
Warrant exercise price | $ / shares | $ 5.75 | |||
Proceeds from debentures | $ 17,100 | |||
Transaction costs | 768 | |||
Fair value of debt | 8,459 | |||
Residual portion of convertible option | 6,382 | |||
Deferred tax recovery | $ 2,301 | |||
Interest expense | 1,594 | |||
Convertible debentures, interest payable settled with shares | $ 754 | |||
Secured Convertible Debentures [Member] | Canadian Dollars [Member] | Broker Warrant [Member] | ||||
Statement Line Items [Line Items] | ||||
Warrant exercise price | $ / shares | $ 5.75 | |||
Secured Convertible Debentures [Member] | Canadian Dollars [Member] | Top of range [member] | ||||
Statement Line Items [Line Items] | ||||
Debt conversion price | $ / shares | $ 12.50 | |||
[1] | On December 31, 2020, the Company elected to pay the first interest payment on the Debentures (Note 16) in common shares valued at C$754 ($588). |
Convertible Debentures - Summar
Convertible Debentures - Summary of Debt Component (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2020 | ||
Statement Line Items [Line Items] | |||
Proceeds on issuance of Debenture | $ 13,334 | ||
Transaction costs paid | (572) | ||
Portion allocated to equity - conversion option and other features | (6,464) | ||
Interest expense | 1,222 | ||
Value of shares issued to settle interest payable | $ (588) | (588) | [1] |
Exchange differences | 351 | ||
Convertible debentures | 7,283 | 7,283 | |
Canadian Dollars [Member] | |||
Statement Line Items [Line Items] | |||
Proceeds on issuance of Debenture | 17,910 | ||
Transaction costs paid | (768) | ||
Portion allocated to equity - conversion option and other features | (8,683) | ||
Interest expense | 1,594 | ||
Value of shares issued to settle interest payable | (754) | (754) | |
Exchange differences | |||
Convertible debentures | $ 9,299 | $ 9,299 | |
[1] | On December 31, 2020, the Company elected to pay the first interest payment on the Debentures (Note 16) in common shares valued at C$754 ($588). |
Share Capital (Details Narrativ
Share Capital (Details Narrative) - shares | Apr. 22, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Statement Line Items [Line Items] | |||
Issuance of stock option | 1,002,395 | 241,000 | |
Number of stock options expired | 332,359 | 20,000 | |
Warrants Exercise Price 3.30 Warrants [Member] | |||
Statement Line Items [Line Items] | |||
Issuance of warrants | 305,060 | ||
Warrants expiration date | Mar. 29, 2022 | ||
Warrants Exercise Price 7.00 [Member] | |||
Statement Line Items [Line Items] | |||
Warrants expiration date | Aug. 27, 2021 | ||
Warrants Exercise Price 5.75 [Member] | |||
Statement Line Items [Line Items] | |||
Warrants expiration date | Jul. 30, 2023 | ||
Stock Options [Member] | |||
Statement Line Items [Line Items] | |||
Issuance of stock option | 531,895 | ||
Number of stock options expired | 130,365 | ||
Stock option expired | Jul. 22, 2020 |
Share Capital - Schedule of Aut
Share Capital - Schedule of Authorized Share Capital (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Equity | |||||||
Opening balance | 22,491,000 | 19,841,000 | |||||
Opening balance, value | $ 114,840 | $ 106,786 | |||||
Shares issued on exercise of stock options | 261,000 | 10,000 | |||||
Shares issued on exercise of stock options, value | $ 602 | $ 38 | |||||
Shares issued on exercise of RSUs and DSUs | 382,000 | 40,000 | |||||
Shares issued on exercise of RSUs and DSUs, value | $ 1,627 | $ 245 | |||||
Shares issued on exercise of warrants | 2,000 | 370,000 | |||||
Shares issued on exercise of warrants, value | $ 8 | $ 699 | |||||
Shares issued from bought deal | [1] | 2,185,000 | |||||
Shares issued from bought deal, value | [1] | $ 6,903 | |||||
Shares issued on acquisition of Otis Gold Corp | [2] | 8,131,000 | |||||
Shares issued on acquisition of Otis Gold Corp, value | [2] | $ 16,370 | |||||
Shares issued as part of Credit Facility | [3] | 107,000 | |||||
Shares issued as part of Credit Facility, value | [3] | $ 180 | |||||
Shares issued to settle payables | 670,974 | 670,974 | 671,000 | [4] | |||
Shares issued to settle payables, value | [4] | $ 1,738 | |||||
Value of shares issued in asset acquisition | [5] | 66,000 | 45,000 | ||||
Value of shares issued in asset acquisition, value | [5] | $ 246 | $ 169 | ||||
Shares issued to settle interest on convertible debentures | [6] | 228,000 | |||||
Shares issued to settle interest on convertible debentures, value | $ 588 | $ 588 | [6] | ||||
Ending balance | 32,339,000 | 32,339,000 | 22,491,000 | ||||
Ending balance, value | $ 136,199 | $ 136,199 | $ 114,840 | ||||
[1] | On August 27, 2019 the Company completed a public equity financing (the "2019 Bought Deal") of 2,185,000 units ("2019 Public Units") at a price of C$5.30 per Public Unit for gross proceeds of C$11,581 (the "2019 Offering"). Each 2019 Public Unit comprised one common share and one half-warrant ("$7.00 Warrant") with each whole warrant entitling the holder to acquire a common share at a price of C$7.00 for a period of two years ending August 27, 2021. The Company issued 1,092,500 $7.00 warrants. Broker and underwriting fees of C$800 were paid in respect of the 2019 Bought Deal.The net proceeds of C$10,510 ($8,000) after transaction costs, were allocated proportionally between the fair values of the common shares and the $7.00 Warrants. | ||||||
[2] | On April 22, 2020, the Company completed the Otis Transaction (Note 5). Otis shareholders received 0.23 of a common share for each Otis common share held (the "Exchange Ratio"), resulting in the issuance of 8,130,630 common shares valued at the market price of C$2.85 per common share. | ||||||
[3] | On March 16, 2020, the Company closed the Credit Facility (Note 14). In consideration for the Facility, Excellon issued 107,291 common shares to Sprott Lending. | ||||||
[4] | During the second and third quarters of 2020, the Company issued 670,974 common shares in settlement of certain Otis transaction costs and Mexican trade payables totaling C$2,098, as approved by the TSX. An amount of $196 (C$261) was recorded in other expenses to reflect the difference between the market value of the shares issued and the carrying amount of the payables settled. | ||||||
[5] | On September 24, 2019, the Company announced the Globex Agreement. The first issuance of 45,367 common shares (valued at C$225) and the first cash payment (C$100) were made on the effective date of the option agreement and recorded as an addition to mineral rights. On September 21, 2020, the second issuance of 65,657 common shares (valued at C$325) and the second cash payment (C$100) were made and recorded as an addition to mineral rights (Note 11). | ||||||
[6] | On December 31, 2020, the Company elected to pay the first interest payment on the Debentures (Note 16) in common shares valued at C$754 ($588). |
Share Capital - Schedule of A_2
Share Capital - Schedule of Authorized Share Capital (Details) (Parenthetical) $ / shares in Units, $ in Thousands | Sep. 21, 2020USD ($)shares | Apr. 22, 2020$ / sharesshares | Mar. 16, 2020shares | Sep. 24, 2019USD ($)shares | Aug. 27, 2019USD ($)shares | Sep. 30, 2020USD ($)shares | Jun. 30, 2020USD ($)shares | Dec. 31, 2020USD ($)$ / shares | Dec. 31, 2020USD ($)$ / sharesshares | Apr. 22, 2020$ / shares | Dec. 31, 2019$ / shares | Aug. 27, 2019$ / shares | ||
Statement Line Items [Line Items] | ||||||||||||||
Shares issued to settle payables, shares | shares | 670,974 | 670,974 | 671,000 | [1] | ||||||||||
Shares issued to settle payables | [1] | $ 1,738 | ||||||||||||
Other expenses | $ 196 | |||||||||||||
Convertible Debentures, Interest payable settled with shares | $ 588 | $ 588 | [2] | |||||||||||
Sprott Private Resource Lending II [Member] | ||||||||||||||
Statement Line Items [Line Items] | ||||||||||||||
Number of common stock issued for credit facility | shares | 107,291 | |||||||||||||
Exchange Ratio [Member] | Otis Gold Corp [Member] | ||||||||||||||
Statement Line Items [Line Items] | ||||||||||||||
Price per share | $ / shares | $ 0.23 | |||||||||||||
Shares issued during the period for acquisition | shares | 8,130,630 | |||||||||||||
Canadian Dollars [Member] | ||||||||||||||
Statement Line Items [Line Items] | ||||||||||||||
Price per share | $ / shares | $ 1.64 | $ 1.64 | $ 2.90 | |||||||||||
Shares issued to settle payables | $ 2,098 | $ 2,098 | ||||||||||||
Other expenses | $ 261 | |||||||||||||
Convertible Debentures, Interest payable settled with shares | $ 754 | $ 754 | ||||||||||||
Canadian Dollars [Member] | Otis Gold Corp [Member] | ||||||||||||||
Statement Line Items [Line Items] | ||||||||||||||
Price per share | $ / shares | $ 2.85 | |||||||||||||
2019 Offering [Member] | ||||||||||||||
Statement Line Items [Line Items] | ||||||||||||||
Proceeds from common stock after transaction cost | $ 8,000 | |||||||||||||
2019 Offering [Member] | Canadian Dollars [Member] | ||||||||||||||
Statement Line Items [Line Items] | ||||||||||||||
Exercise price of warrants | $ / shares | $ 7 | |||||||||||||
Shares issued during the period public equity financing, shares | shares | 2,185,000 | |||||||||||||
Proceeds from offering | $ 11,581 | |||||||||||||
Price per share | $ / shares | $ 5.30 | |||||||||||||
Warrants to purchase common stock, description | Each 2019 Public Unit comprised one common share and one half-warrant ("$7.00 Warrant") with each whole warrant entitling the holder to acquire a Common share at a price of C$7.00 for a period of two years ending August 27, 2021. | |||||||||||||
Warrant term | 2 years | |||||||||||||
Issuance of warrants | shares | 1,092,500 | |||||||||||||
Payments for broker and underwriting fees | $ 800 | |||||||||||||
Proceeds from common stock after transaction cost | $ 10,510 | |||||||||||||
Globex Agreement [Member] | Canadian Dollars [Member] | First Issuance [Member] | ||||||||||||||
Statement Line Items [Line Items] | ||||||||||||||
Shares issued during the period for acquisition | shares | 45,367 | |||||||||||||
Shares issued during the period for acquisition, value | $ 225 | |||||||||||||
Payment for purchase of shares | $ 100 | |||||||||||||
Globex Agreement [Member] | Canadian Dollars [Member] | Second Issuance [Member] | ||||||||||||||
Statement Line Items [Line Items] | ||||||||||||||
Shares issued during the period for acquisition | shares | 65,657 | |||||||||||||
Shares issued during the period for acquisition, value | $ 325 | |||||||||||||
Payment for purchase of shares | $ 100 | |||||||||||||
[1] | During the second and third quarters of 2020, the Company issued 670,974 common shares in settlement of certain Otis transaction costs and Mexican trade payables totaling C$2,098, as approved by the TSX. An amount of $196 (C$261) was recorded in other expenses to reflect the difference between the market value of the shares issued and the carrying amount of the payables settled. | |||||||||||||
[2] | On December 31, 2020, the Company elected to pay the first interest payment on the Debentures (Note 16) in common shares valued at C$754 ($588). |
Share Capital - Schedule of Out
Share Capital - Schedule of Outstanding Number and Weighted Average Exercise Prices (Details) | 12 Months Ended | |
Dec. 31, 2020shares$ / shares | Dec. 31, 2019shares$ / shares | |
Statement Line Items [Line Items] | ||
Outstanding, Beginning Balance | 461,000 | 260,000 |
Granted/issued/acquired (Note 5) | 1,002,395 | 241,000 |
Exercised/settled | (260,596) | (10,000) |
Expired | (332,359) | (20,000) |
Forfeited | (23,004) | (10,000) |
Outstanding, Ending Balance | 847,437 | 461,000 |
Exercisable, Ending Balance | 548,009 | 270,665 |
Restricted Stock Units (RSUs) [Member] | ||
Statement Line Items [Line Items] | ||
Outstanding, Beginning Balance | 572,486 | 352,571 |
Granted/issued/acquired (Note 5) | 337,331 | 369,795 |
Exercised/settled | (224,750) | (39,833) |
Expired | (91,332) | |
Forfeited | (128,223) | (110,047) |
Outstanding, Ending Balance | 465,511 | 572,486 |
Exercisable, Ending Balance | ||
Deferred Stock Units (DSUs) [Member] | ||
Statement Line Items [Line Items] | ||
Outstanding, Beginning Balance | 467,572 | 372,499 |
Granted/issued/acquired (Note 5) | 217,264 | 95,073 |
Exercised/settled | (193,507) | |
Expired | ||
Forfeited | ||
Outstanding, Ending Balance | 491,330 | 467,572 |
Exercisable, Ending Balance | ||
Warrants [Member] | ||
Statement Line Items [Line Items] | ||
Outstanding, Beginning Balance | 1,092,500 | 370,209 |
Granted/issued/acquired (Note 5) | 1,448,488 | 1,092,500 |
Exercised/settled | (2,400) | (370,209) |
Expired | ||
Forfeited | ||
Outstanding, Ending Balance | 2,538,588 | 1,092,500 |
Exercisable, Ending Balance | 2,538,588 | 1,092,500 |
Canadian Dollars [Member] | ||
Statement Line Items [Line Items] | ||
Weighted Average Exercise Price, Beginning Balance | $ / shares | $ 5.59 | $ 6.34 |
Weighted Average Exercise Price, Granted/issued/acquired (Note 5) | $ / shares | 3.34 | 4.68 |
Weighted Average Exercise Price, Exercised/settled | $ / shares | 1.93 | 2.85 |
Weighted Average Exercise Price, Expired | $ / shares | 5.20 | 5.78 |
Weighted Average Exercise Price, Forfeited | $ / shares | 4.26 | 4.75 |
Weighted Average Exercise Price, Ending Balance | $ / shares | 4.21 | 5.59 |
Weighted Average Exercise Price Options Vested and Exercisable, Ending Balance | $ / shares | 4.52 | 5.91 |
Canadian Dollars [Member] | Warrants [Member] | ||
Statement Line Items [Line Items] | ||
Weighted Average Exercise Price, Beginning Balance | $ / shares | 7 | 2.50 |
Weighted Average Exercise Price, Granted/issued/acquired (Note 5) | $ / shares | 5.23 | 7 |
Weighted Average Exercise Price, Exercised/settled | $ / shares | 3.45 | 2.50 |
Weighted Average Exercise Price, Expired | $ / shares | ||
Weighted Average Exercise Price, Forfeited | $ / shares | ||
Weighted Average Exercise Price, Ending Balance | $ / shares | 6 | 7 |
Weighted Average Exercise Price Options Vested and Exercisable, Ending Balance | $ / shares | $ 6 | $ 7 |
Share Capital - Schedule of Opt
Share Capital - Schedule of Options Outstanding and Exercisable (Details) | 12 Months Ended | ||
Dec. 31, 2020shares$ / shares | Dec. 31, 2019shares$ / shares | Dec. 31, 2018shares | |
Statement Line Items [Line Items] | |||
Stock Options Outstanding | shares | 847,437 | 461,000 | 260,000 |
Weighted Average Remaining Life (years) | 2 years 6 months 14 days | ||
Exercisable, Ending Balance | shares | 548,009 | 270,665 | |
Canadian Dollars [Member] | |||
Statement Line Items [Line Items] | |||
Weighted Average Exercise Price Options Vested and Exercisable, Ending Balance | $ 4.52 | $ 5.91 | |
Canadian Dollars [Member] | Bottom of range [member] | |||
Statement Line Items [Line Items] | |||
Exercise Price Range | 1.10 | ||
Canadian Dollars [Member] | Top of range [member] | |||
Statement Line Items [Line Items] | |||
Exercise Price Range | $ 7.65 | ||
Exercise Price One [Member] | |||
Statement Line Items [Line Items] | |||
Stock Options Outstanding | shares | 502,487 | ||
Weighted Average Remaining Life (years) | 2 years 5 months 1 day | ||
Exercisable, Ending Balance | shares | 294,235 | ||
Exercise Price One [Member] | Canadian Dollars [Member] | |||
Statement Line Items [Line Items] | |||
Weighted Average Exercise Price Options Vested and Exercisable, Ending Balance | $ 3.07 | ||
Exercise Price One [Member] | Canadian Dollars [Member] | Bottom of range [member] | |||
Statement Line Items [Line Items] | |||
Exercise Price Range | 2 | ||
Exercise Price One [Member] | Canadian Dollars [Member] | Top of range [member] | |||
Statement Line Items [Line Items] | |||
Exercise Price Range | $ 3.99 | ||
Exercise Price Two [Member] | |||
Statement Line Items [Line Items] | |||
Stock Options Outstanding | shares | 243,950 | ||
Weighted Average Remaining Life (years) | 3 years 2 months 8 days | ||
Exercisable, Ending Balance | shares | 152,774 | ||
Exercise Price Two [Member] | Canadian Dollars [Member] | |||
Statement Line Items [Line Items] | |||
Weighted Average Exercise Price Options Vested and Exercisable, Ending Balance | $ 4.75 | ||
Exercise Price Two [Member] | Canadian Dollars [Member] | Bottom of range [member] | |||
Statement Line Items [Line Items] | |||
Exercise Price Range | 4 | ||
Exercise Price Two [Member] | Canadian Dollars [Member] | Top of range [member] | |||
Statement Line Items [Line Items] | |||
Exercise Price Range | $ 5.99 | ||
Exercise Price Three [Member] | |||
Statement Line Items [Line Items] | |||
Stock Options Outstanding | shares | 15,000 | ||
Weighted Average Remaining Life (years) | 1 year 4 months 24 days | ||
Exercisable, Ending Balance | shares | 15,000 | ||
Exercise Price Three [Member] | Canadian Dollars [Member] | |||
Statement Line Items [Line Items] | |||
Weighted Average Exercise Price Options Vested and Exercisable, Ending Balance | $ 7.63 | ||
Exercise Price Three [Member] | Canadian Dollars [Member] | Bottom of range [member] | |||
Statement Line Items [Line Items] | |||
Exercise Price Range | 6 | ||
Exercise Price Three [Member] | Canadian Dollars [Member] | Top of range [member] | |||
Statement Line Items [Line Items] | |||
Exercise Price Range | $ 7.99 | ||
Exercise Price Four [Member] | |||
Statement Line Items [Line Items] | |||
Stock Options Outstanding | shares | 86,000 | ||
Weighted Average Remaining Life (years) | 1 year 7 months 2 days | ||
Exercisable, Ending Balance | shares | 86,000 | ||
Exercise Price Four [Member] | Canadian Dollars [Member] | |||
Statement Line Items [Line Items] | |||
Weighted Average Exercise Price Options Vested and Exercisable, Ending Balance | $ 8.53 | ||
Exercise Price Four [Member] | Canadian Dollars [Member] | Bottom of range [member] | |||
Statement Line Items [Line Items] | |||
Exercise Price Range | 8 | ||
Exercise Price Four [Member] | Canadian Dollars [Member] | Top of range [member] | |||
Statement Line Items [Line Items] | |||
Exercise Price Range | $ 9.99 |
Share Capital - Schedule of Mea
Share Capital - Schedule of Measurement of the Option Fair Values at Grant Date (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Statement Line Items [Line Items] | ||
Risk free interest rate | 0.56% | 171.50% |
Expected life of options in years | 5 years | 5 years |
Expected volatility | 74.81% | 77.63% |
Expected dividend yield | 0.00% | 0.00% |
Estimated forfeiture rate | 4.76% | 5.40% |
Canadian Dollars [Member] | ||
Statement Line Items [Line Items] | ||
Fair value at grant date | $ 1.64 | $ 2.90 |
Share price at grant date | 3.34 | 4.65 |
Exercise price | $ 3.34 | $ 4.65 |
Share Capital - Schedule of Sha
Share Capital - Schedule of Share Based Compensation Expense (Details) - Canadian Dollars [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Statement Line Items [Line Items] | ||
Share-based compensation expenses | $ 2,554 | $ 1,463 |
Stock Options [Member] | ||
Statement Line Items [Line Items] | ||
Share-based compensation expenses | 634 | 559 |
Restricted Stock Units (RSUs) [Member] | ||
Statement Line Items [Line Items] | ||
Share-based compensation expenses | 1,085 | 456 |
Deferred Stock Units (DSUs) [Member] | ||
Statement Line Items [Line Items] | ||
Share-based compensation expenses | $ 835 | $ 448 |
Loss Per Share - Schedule of Lo
Loss Per Share - Schedule of Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings per share [abstract] | ||
Net loss for the year | $ (16,020) | $ (10,075) |
Weighted average number of shares outstanding - basic and diluted | 28,881,800 | 20,674,866 |
Net loss per share - basic and diluted | $ (0.55) | $ (0.49) |
Commitments and Contingencies_2
Commitments and Contingencies (Details Narrative) - Platosa Project Net Smelter Return [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Statement Line Items [Line Items] | |
Interest rate description | The NSR bears a rate of either (a) 1.25% in respect of manto or mineralization other than skarn mineralization or (b) 0.50% in respect of skarn or "Source" mineralization. |
Minimum payment for plaintiff | $ 2,500 |
Interest rate of plaintiff | 3.00% |
Payment for royalty | $ 500 |
Accrued labour disputes | $ 142 |
Commitments and Contingencies -
Commitments and Contingencies - Summary of Significant Unrecognized Commitments (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Statement Line Items [Line Items] | |
Exploration License (Silver City Project) - Cash | $ 234 |
Exploration License (Silver City Project) - Shares | 819 |
Concession holding fees | 3,387 |
Commitments and contingencies | 4,441 |
2021 [Member] | |
Statement Line Items [Line Items] | |
Exploration License (Silver City Project) - Cash | 78 |
Exploration License (Silver City Project) - Shares | 332 |
Concession holding fees | 648 |
Commitments and contingencies | 1,057 |
2022 [Member] | |
Statement Line Items [Line Items] | |
Exploration License (Silver City Project) - Cash | 156 |
Exploration License (Silver City Project) - Shares | 488 |
Concession holding fees | 689 |
Commitments and contingencies | 1,333 |
2023 [Member] | |
Statement Line Items [Line Items] | |
Exploration License (Silver City Project) - Cash | |
Exploration License (Silver City Project) - Shares | |
Concession holding fees | 632 |
Commitments and contingencies | 632 |
2024 [Member] | |
Statement Line Items [Line Items] | |
Exploration License (Silver City Project) - Cash | |
Exploration License (Silver City Project) - Shares | |
Concession holding fees | 709 |
Commitments and contingencies | 709 |
2025 [Member] | |
Statement Line Items [Line Items] | |
Exploration License (Silver City Project) - Cash | |
Exploration License (Silver City Project) - Shares | |
Concession holding fees | 709 |
Commitments and contingencies | $ 709 |
Revenues (Details Narrative)
Revenues (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Statement Line Items [Line Items] | ||
Revenues | $ 26,202 | $ 26,469 |
Toll Milling Arrangement [Member] | ||
Statement Line Items [Line Items] | ||
Revenues | $ 496 | $ 920 |
Revenues - Schedule of Recogniz
Revenues - Schedule of Recognized Amounts Related to Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue [abstract] | ||
Concentrate revenues from contracts with customers | $ 25,970 | $ 26,017 |
Provisional pricing adjustment on concentrate sales | (264) | (468) |
Revenues from toll milling services | 496 | 920 |
Total revenues | $ 26,202 | $ 26,469 |
Revenues - Schedule of Disaggre
Revenues - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Statement Line Items [Line Items] | ||
Total revenues | $ 26,202 | $ 26,469 |
Revenues From Toll Milling Services [Member] | ||
Statement Line Items [Line Items] | ||
Total revenues | 496 | 920 |
Concentrate Revenues From Contracts With Customers: Silver [Member] | ||
Statement Line Items [Line Items] | ||
Total revenues | 16,963 | 13,693 |
Concentrate Revenues From Contracts With Customers: Lead [Member] | ||
Statement Line Items [Line Items] | ||
Total revenues | 3,571 | 4,422 |
Concentrate Revenues From Contracts With Customers: Zinc [Member] | ||
Statement Line Items [Line Items] | ||
Total revenues | $ 5,172 | $ 7,434 |
Expenses By Nature - Schedule o
Expenses By Nature - Schedule of Cost of Sales (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Expenses By Nature Abstract | |||
Direct mining and milling costs | [1] | $ 19,604 | $ 22,541 |
Changes in inventories | [2] | 143 | 193 |
Depletion and amortization | 4,649 | 4,708 | |
Toll milling costs | 234 | 482 | |
Cost of sales | $ 24,630 | $ 27,924 | |
[1] | Direct mining and milling costs include personnel, general and administrative, fuel, electricity, maintenance and repair costs as well as operating supplies, external services and transport fees. | ||
[2] | Changes in inventories reflect the net cost of ore and concentrate (i) sold during the current period but produced in a previous period (an addition to direct mining and milling costs) or (ii) produced but not sold in the current period (a deduction from direct mining and milling costs). |
Expenses By Nature - Schedule_2
Expenses By Nature - Schedule of Administrative Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Expenses By Nature Abstract | ||
Office and overhead costs | $ 1,822 | $ 1,773 |
Salaries and wages | 1,777 | 1,442 |
Corporate development and legal | 794 | 182 |
Public company costs | 237 | 52 |
Administrative expenses | $ 4,630 | $ 3,448 |
Expenses By Nature - Schedule_3
Expenses By Nature - Schedule of Other Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Expenses By Nature Abstract | ||
Unrealized gain on marketable securities (Note 6 ) | $ (645) | $ (289) |
Unrealized gain on purchase warrants (Note 6) | (67) | |
Loss (gain) on disposal of assets (Note 11 ) | 188 | (19) |
Unrealized foreign exchange loss (gain) | 653 | (360) |
Realized foreign exchange loss (gain) | 276 | (115) |
Interest income | (47) | (60) |
Shares issued at a discount to settle payables | 196 | |
Management fee income (Note 11 ) | (95) | |
Other | (86) | 61 |
Other expenses, net | $ 373 | $ (782) |
Exploration Expense - Schedule
Exploration Expense - Schedule of Exploration Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Statement Line Items [Line Items] | ||
Exploration | $ 4,032 | $ 3,853 |
Platosa [Member] | ||
Statement Line Items [Line Items] | ||
Exploration | 1,037 | 2,965 |
Evolucion [Member] | ||
Statement Line Items [Line Items] | ||
Exploration | 582 | 833 |
Silver City [Member] | ||
Statement Line Items [Line Items] | ||
Exploration | 1,672 | 55 |
Kilgore [Member] | ||
Statement Line Items [Line Items] | ||
Exploration | $ 741 |
Finance Expenses - Schedule of
Finance Expenses - Schedule of Finance Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Finance Expenses | ||
Interest expense - convertible debentures | $ 1,222 | |
Interest expense - other | 759 | 71 |
Rehabilitation provision - accretion | 61 | 26 |
Post-retirement benefits - accretion | 40 | 62 |
Gain on change in fair value of purchase warrant liabilities | (335) | |
Unrealized loss (gain) on currency hedges | 426 | 368 |
Finance expense (income), net | $ 2,508 | $ (295) |
Income Tax (Details Narrative)
Income Tax (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Statement Line Items [Line Items] | ||
Enacted tax rates | 26.50% | 26.50% |
Percentage of mexican royalty | 7.50% | |
Special mining royalty | $ (318) | $ (152) |
Deferred tax liabilities | 929 | 811 |
Deferred tax assets | 5,145 | 10,894 |
Net deferred tax assets | 4,216 | 10,083 |
Capital losses | 8,439 | 8,252 |
Loss carryforwards | 1,048 | |
Deferred tax liability for unremitted earnings | ||
Unremitted earnings | $ 4,887 | $ 5,147 |
CANADA [Member] | ||
Statement Line Items [Line Items] | ||
Enacted tax rates | 26.50% | |
Percentage of mexican royalty | 7.50% | |
Loss carryforwards subject to expiration | $ 433 | |
Loss carryforwards subject to expiration, description | Of this amount, $433 expires between 2033 and 2037 fiscal years. | |
Loss carryforwards not subject to expiration | $ 615 | |
MEXICO [Member] | ||
Statement Line Items [Line Items] | ||
Enacted tax rates | 30.00% |
Income Tax - Schedule of Provin
Income Tax - Schedule of Provincial Income Tax Rates (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Major components of tax expense (income) [abstract] | ||
Statutory tax rates | 26.50% | 26.50% |
Income tax (recovery) computed at the statutory rates | $ (3,243) | $ (2,399) |
Non-deductible items | (1,996) | 120 |
Change in tax benefit not recognized | 9,098 | 2,933 |
Foreign tax differentials | (355) | (267) |
Other | 112 | 735 |
Special mining royalty | 167 | (100) |
Provision for income taxes | $ 3,783 | $ 1,022 |
Income Tax - Schedule of Provis
Income Tax - Schedule of Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Major components of tax expense (income) [abstract] | ||
Current income taxes | $ 305 | $ 299 |
Deferred income taxes | 3,478 | 723 |
Provision for income taxes | $ 3,783 | $ 1,022 |
Income Tax - Schedule of Deferr
Income Tax - Schedule of Deferred Income Tax Assets (liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Major components of tax expense (income) [abstract] | ||
Non-capital losses carried forward | $ 1,521 | $ 9,010 |
Resource related assets | 1,285 | 1,061 |
Property, plant and equipment | 2,079 | (697) |
Deferred income and other | 1 | 6 |
Accrued revenue | 26 | 10 |
Prepaid expenses, deposits and other | 233 | 1,504 |
Deferred tax assets | 5,145 | 10,894 |
Prepaid expenses, deposits and other | (611) | (659) |
Special mining royalty | (318) | (152) |
Deferred tax liabilities | 929 | 811 |
Net deferred tax assets | $ 4,216 | $ 10,083 |
Income Tax - Summary of Tempora
Income Tax - Summary of Temporary Differences and Non-capital Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Major components of tax expense (income) [abstract] | ||
Non-capital losses carried forward | $ 57,299 | $ 23,982 |
Capital losses | 1,214 | 3,697 |
Resource related deductions | 22,510 | 20,961 |
Share issuance costs | 9 | 26 |
Property, plant and equipment | 206 | 141 |
Prepaid expenses, deposits and other | 2,160 | 1,522 |
Temporary Differences and Non-capital Losses | $ 83,398 | $ 50,330 |
Income Tax - Summary of Non-cap
Income Tax - Summary of Non-capital Losses (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Statement Line Items [Line Items] | ||
Non-capital losses carry forward | $ 64,149 | $ 54,017 |
2021 [Member] | ||
Statement Line Items [Line Items] | ||
Non-capital losses carry forward | 1,471 | 1,551 |
2022 [Member] | ||
Statement Line Items [Line Items] | ||
Non-capital losses carry forward | ||
2023 [Member] | ||
Statement Line Items [Line Items] | ||
Non-capital losses carry forward | ||
2024 andThereafter [Member] | ||
Statement Line Items [Line Items] | ||
Non-capital losses carry forward | $ 62,678 | $ 52,466 |
Related Parties (Details Narrat
Related Parties (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Related party transactions [abstract] | ||
Legal services | $ 50 | $ 74 |
Outstanding payable balance | $ 8 |
Key Management Transactions - S
Key Management Transactions - Schedule of Key Management Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of transactions between related parties [abstract] | ||
Salaries, fees and benefits | $ 1,510 | $ 1,227 |
Director's fees | 285 | 315 |
Shared-based payments | 1,175 | 962 |
Remuneration expenses | $ 2,970 | $ 2,504 |
Financial Instruments (Details
Financial Instruments (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Statement Line Items [Line Items] | ||
Contracts for the purchase | $ 800 | |
Average exchange rate | $ 20.45 | |
Exchange maturity description | Until February 2021 | |
Unrealized gain (loss) in finance expense | $ 426 | $ 368 |
Asset balance | 4,153 | $ 3,058 |
Increased/(decreased) net income | $ 46 | |
Commodity price risk [member] | ||
Statement Line Items [Line Items] | ||
Average exchange rate | $ 20.40 | $ 16.20 |
Increased/(decreased) net income | $ 3,220 | |
Forward Foreign Exchange Contracts [Member] | ||
Statement Line Items [Line Items] | ||
Unrealized gain (loss) in finance expense | 426 | $ 119 |
Forward Foreign Exchange Contracts [Member] | Level 2 of fair value hierarchy [Member] | ||
Statement Line Items [Line Items] | ||
Asset balance | 21 | $ 432 |
MEXICO | ||
Statement Line Items [Line Items] | ||
Contracts for the purchase | $ 16,000 |
Financial Instruments - Schedul
Financial Instruments - Schedule of Three Levels of Fair Value Hierarchy (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Statement Line Items [Line Items] | ||
Financial assets | $ 4,153 | $ 3,058 |
Level 1 of fair value hierarchy [member] | Marketable Securities [Member] | ||
Statement Line Items [Line Items] | ||
Financial assets | 2,138 | 348 |
Level 2 of fair value hierarchy [Member] | Forward Foreign Exchange Contracts [Member] | ||
Statement Line Items [Line Items] | ||
Financial assets | 21 | 432 |
Level 2 of fair value hierarchy [Member] | Purchase Warrants [Member] | ||
Statement Line Items [Line Items] | ||
Financial assets | 212 | |
Level 2 of fair value hierarchy [Member] | Trade Receivables [Member] | ||
Statement Line Items [Line Items] | ||
Financial assets | $ 1,782 | $ 2,278 |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Segment Reporting (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement Line Items [Line Items] | |||
Property, plant and equipment | $ 25,830 | $ 24,818 | $ 52,274 |
Capital expenditures | (7,668) | (6,787) | |
Mineral rights | 20,511 | 2,676 | |
Total assets | 73,279 | 55,582 | |
Total liabilities | 22,837 | 13,390 | |
Revenues | 26,202 | 26,469 | |
Cost of sales | 24,630 | 27,924 | |
Exploration | 4,032 | 3,853 | |
Income tax recovery (expense) | 3,783 | 1,022 | |
Corporate administrative expenses | 4,630 | 3,448 | |
Net loss | (16,020) | (10,075) | |
CORPORATE [Member] | |||
Statement Line Items [Line Items] | |||
Property, plant and equipment | 953 | 1,427 | |
Capital expenditures | (48) | (1,068) | |
Mineral rights | 19,707 | 1,673 | |
Total assets | 10,217 | 7,601 | |
Total liabilities | 10,396 | 1,849 | |
Exploration | (2,413) | (64) | |
Other (expense) income | 685 | (44) | |
Finance (expense) income | (2,372) | 335 | |
Income tax recovery (expense) | 1,714 | (93) | |
Corporate administrative expenses | (6,896) | (4,823) | |
Net loss | (9,282) | (4,689) | |
MEXICO [Member] | |||
Statement Line Items [Line Items] | |||
Property, plant and equipment | 24,877 | 23,391 | |
Capital expenditures | (7,620) | (5,719) | |
Mineral rights | 804 | 1,003 | |
Total assets | 63,062 | 47,981 | |
Total liabilities | 12,441 | 11,541 | |
Revenues | 26,202 | 26,469 | |
Cost of sales | (24,630) | (27,924) | |
Exploration | (1,619) | (3,789) | |
Other (expense) income | (1,058) | 826 | |
Finance (expense) income | (136) | (40) | |
Income tax recovery (expense) | (5,497) | (928) | |
Net loss | $ (6,738) | $ (5,386) |