Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2022 shares | |
Document Information [Line Items] | |
Entity Registrant Name | FORTUNA SILVER MINES INC |
Entity Central Index Key | 0001341335 |
Document Type | 40-F |
Document Registration Statement | false |
Document Annual Report | true |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2022 |
Entity File Number | 001-35297 |
Entity Incorporation, State or Country Code | Z4 |
Entity Primary SIC Number | 1040 |
Entity Tax Identification Number | 00-0000000 |
Entity Address, Address Line One | 200 Burrard Street |
Entity Address, Address Line Two | Suite 650 |
Entity Address, City or Town | Vancouver |
Entity Address, State or Province | BC |
Entity Address, Postal Zip Code | V6C 3L6 |
Entity Address, Country | CA |
City Area Code | 604 |
Local Phone Number | 484-4085 |
Title of 12(b) Security | Common Shares |
Trading Symbol | FSM |
Security Exchange Name | NYSE |
Annual Information Form | true |
Audited Annual Financial Statements | true |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2022 |
Current Fiscal Year End Date | --12-31 |
Entity Interactive Data Current | Yes |
Entity Current Reporting Status | Yes |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | true |
Entity Common Stock, Shares Outstanding | 290,221,971 |
Auditor Name | KPMG LLP |
Auditor Firm ID | 85 |
Auditor Location | Vancouver, Canada |
Business Contact | |
Document Information [Line Items] | |
Entity Address, Address Line One | 10 East 40th Street |
Entity Address, Address Line Two | 10th Floor |
Entity Address, City or Town | New York |
Entity Address, State or Province | NY |
Entity Address, Postal Zip Code | 10016 |
City Area Code | 212 |
Local Phone Number | 947-7200 |
Contact Personnel Name | National Corporate Research, Ltd. |
Consolidated Income Statements
Consolidated Income Statements - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Consolidated Income Statements [abstract] | ||
Sales | $ 681,491 | $ 599,853 |
Cost of sales | 534,695 | 394,376 |
Mine operating income | 146,796 | 205,477 |
Other Expenses [abstract] | ||
General and administration | 61,456 | 45,360 |
Exploration and evaluation | 1,225 | 1,012 |
Foreign exchange loss | 8,866 | 6,092 |
Impairment of mineral properties, plant, and equipment | (182,842) | |
Write off of mineral properties | 5,874 | |
Other expenses | 85 | 16,134 |
Operating expenses (income), total | 260,348 | 68,598 |
Operating (loss) income | (113,552) | 136,879 |
Other income (loss) | ||
Interest and finance costs, net | (12,057) | (12,863) |
Gain (loss) on derivatives | 500 | (2,751) |
Roxgold transaction costs | (14,085) | |
Financial income (expense), total | (11,557) | (29,699) |
Financing items | ||
Interest income | (1,851) | (1,846) |
Interest expense | 8,885 | 10,246 |
(Loss) income before income taxes | (125,109) | 107,180 |
Income taxes | ||
Current income tax expense | 35,783 | 51,651 |
Deferred income tax recovery | (24,986) | (3,870) |
Total tax expense | 10,797 | 47,781 |
Net (loss) income for the year | (135,906) | 59,399 |
Net (loss) income attributable to: | ||
Fortuna shareholders | (128,132) | 57,877 |
Non-controlling interest | $ (7,774) | $ 1,522 |
(Loss) earnings per share | ||
Basic | $ (0.44) | $ 0.24 |
Diluted | $ (0.44) | $ 0.23 |
Weighted average number of common shares outstanding during the period (000's) | ||
Basic | 291,281 | 237,998 |
Diluted | 291,281 | 249,443 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Consolidated Statements of Comprehensive Income (Loss) [Abstract] | ||
Net (loss) income for the year | $ (135,906) | $ 59,399 |
Items that will remain permanently in other comprehensive income: | ||
Changes in fair value of investments in equity securities, net of $nil tax | (280) | (272) |
Items that may in the future be reclassified to profit or loss: | ||
Currency translation adjustment, net of tax | (61) | (4,022) |
Change in fair value of hedging instruments, net of $nil tax | 70 | 1,006 |
Total other comprehensive loss for the year | (271) | (3,288) |
Comprehensive (loss) income for the year | $ (136,177) | $ 56,111 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Consolidated Statements of Comprehensive Income (Loss) [Abstract] | ||
Currency translation adjustment, tax | $ 1,100 | |
Comprehensive income attributable to: | ||
Fortuna shareholders | (128,403) | $ 54,589 |
Non-controlling interest | (7,774) | 1,522 |
Comprehensive (loss) income for the year | $ (136,177) | $ 56,111 |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 80,493,000 | $ 107,097,000 |
Trade and other receivables | 68,165,000 | 76,487,000 |
Inventories | 92,033,000 | 85,819,000 |
Other current assets | 12,021,000 | 11,679,000 |
Total current assets | 252,712,000 | 281,082,000 |
NON-CURRENT ASSETS: | ||
Restricted cash | 3,967,000 | 2,056,000 |
Mineral properties and property, plant and equipment | 1,567,622,000 | 1,712,354,000 |
Other non-current assets | 51,923,000 | 26,430,000 |
Total assets | 1,876,224,000 | 2,021,922,000 |
CURRENT LIABILITIES: | ||
Trade and other payables | 111,896,000 | 133,805,000 |
Income taxes payable | 11,591,000 | 20,563,000 |
Current portion of lease obligations | 9,416,000 | 10,523,000 |
Current portion of closure and reclamation provisions | 2,177,000 | 1,882,000 |
Total current liabilities | 135,080,000 | 166,773,000 |
NON-CURRENT LIABILITIES: | ||
Debt | 219,175,000 | 157,489,000 |
Deferred tax liabilities | 167,619,000 | 191,668,000 |
Closure and reclamation provisions | 51,128,000 | 54,230,000 |
Lease obligations | 11,930,000 | 18,882,000 |
Other non-current liabilities | 2,596,000 | 3,310,000 |
Total liabilities | 587,528,000 | 592,352,000 |
SHAREHOLDERS' EQUITY | ||
Share capital | 1,076,342,000 | 1,079,746,000 |
Reserves | 29,929,000 | 28,785,000 |
Retained earnings | 138,485,000 | 266,617,000 |
Total equity attributable to owners of parent | 1,244,756,000 | 1,375,148,000 |
Equity attributable to non-controlling interest | 43,940,000 | 54,422,000 |
Total equity | 1,288,696,000 | 1,429,570,000 |
Total liabilities and shareholders' equity | $ 1,876,224,000 | $ 2,021,922,000 |
Consolidated Statements of Cash
Consolidated Statements of Cashflows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Operating activities: | ||
Net (loss) income for the year | $ (135,906) | $ 59,399 |
Items not involving cash | ||
Depletion and depreciation | 172,809 | 122,272 |
Accretion expense | 4,830 | 3,799 |
Income taxes | 10,797 | 47,781 |
Interest expense, net | 7,227 | 8,469 |
Loss on extinguishment of debt facility | 595 | |
Share-based payments, net of cash settlements | (1) | (3,079) |
Impairment of mineral properties, plant and equipment | 182,841 | |
Inventory net realizable value adjustments | 8,898 | 7,035 |
Write off of mineral properties | 5,874 | |
Unrealized foreign exchange loss | 4,554 | 4,304 |
Unrealized (gain) loss on derivatives | (1,194) | 1,260 |
Other | 3,360 | |
Closure and reclamation payments | (623) | (354) |
Changes in working capital | (18,021) | (39,314) |
Cash provided by operating activities | 242,085 | 215,526 |
Income taxes paid | (42,222) | (62,677) |
Interest paid | (7,465) | (7,420) |
Interest received | 1,851 | 1,708 |
Net cash provided by operating activities | 194,249 | 147,138 |
Investing activities: | ||
Cash consideration for acquisition of Roxgold | (25,333) | |
Cash acquired through acquisition of Roxgold | 65,622 | |
Promissory note receivable | (35,296) | |
Restricted cash | (1,911) | |
Additions to mineral properties, plant and equipment | (251,236) | (152,289) |
Contractor advances on Seguela construction | (2,186) | |
Proceeds from sale of investments | 14 | |
Proceeds from sale of assets | 12 | |
Recoveries of Lindero construction VAT | 28,771 | |
Cash used in investing activities | (255,333) | (118,499) |
Financing activities: | ||
Transaction costs on credit facility | (688) | (3,036) |
Proceeds from credit facility | 80,000 | |
Repayment of credit facility | (20,000) | (32,288) |
Repurchase of common shares | (5,929) | |
Proceeds from issuance of common shares | 313 | |
Payments of lease obligations | (12,209) | (11,928) |
Dividend payment to non-controlling interest | (2,708) | (4,483) |
Cash provided by (used in) financing activities | 38,466 | (51,422) |
Effect of exchange rate changes on cash and cash equivalents | (3,986) | (2,018) |
(Decrease) increase in cash and cash equivalents during the year | (26,604) | (24,801) |
Cash and cash equivalents, beginning of the year | 107,097 | 131,898 |
Cash and cash equivalents, end of the year | $ 80,493 | $ 107,097 |
Consolidated Statements of Ca_2
Consolidated Statements of Cashflows - Cash and Cash Equivalents - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Cash and cash equivalents consist of: | ||
Cash | $ 65,140 | $ 64,096 |
Cash equivalents | 15,353 | 43,001 |
Cash and cash equivalents | $ 80,493 | $ 107,097 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) | Issued capital [member] | Equity reserve [member] | Hedging reserve [member] | Fair value reserve [member] | Reserves convertible Debentures [member] | Foreign currency reserves [member] | Retained earnings [member] | Non-controlling interests [member] | Total |
Equity at beginning of period at Dec. 31, 2020 | $ 492,306,000 | $ 20,086,000 | $ (878,000) | $ (424,000) | $ 4,825,000 | $ 1,115,000 | $ 208,740,000 | $ 725,770,000 | |
Equity at beginning of period, shares at Dec. 31, 2020 | 184,195,727 | ||||||||
Net income for the period attributable to Fortuna shareholders | 57,877,000 | $ 1,522,000 | 59,399,000 | ||||||
Other comprehensive loss for the year | 1,006,000 | (272,000) | (4,022,000) | (3,288,000) | |||||
Comprehensive (loss) income for the year | 56,111,000 | ||||||||
Comprehensive income for the year, including beginning balance | 1,006,000 | (272,000) | (4,022,000) | 57,877,000 | 1,522,000 | 56,111,000 | |||
Acquisition of Roxgold | $ 582,523,000 | 7,332,000 | 52,900,000 | 642,755,000 | |||||
Acquisition of Roxgold, shares | 106,106,224 | ||||||||
Exercise of stock options | $ 389,000 | (136,000) | 253,000 | ||||||
Exercise of stock options, shares | 68,927 | ||||||||
Shares issued on vesting of share units | $ 4,468,000 | (4,468,000) | |||||||
Shares issued on vesting of share units, shares | 1,146,452 | ||||||||
Convertible debenture conversion | $ 60,000 | 60,000 | |||||||
Convertible debenture conversion, shares | 12,000 | ||||||||
Shares issued for share units | $ 60,000 | 60,000 | |||||||
Share-based payments | 4,621,000 | 4,621,000 | |||||||
Subtotal of transactions with owners of the Company | $ 587,440,000 | 7,349,000 | 52,900,000 | 647,689,000 | |||||
Subtotal of transactions with owners of the Company, shares | 107,333,603 | ||||||||
Equity at end of period at Dec. 31, 2021 | $ 1,079,746,000 | 27,435,000 | 128,000 | (696,000) | 4,825,000 | (2,907,000) | 266,617,000 | 54,422,000 | 1,429,570,000 |
Equity at end of period, shares at Dec. 31, 2021 | 291,529,330 | ||||||||
Net income for the period attributable to Fortuna shareholders | (128,132,000) | (7,774,000) | (135,906,000) | ||||||
Other comprehensive loss for the year | 70,000 | (280,000) | (61,000) | (271,000) | |||||
Comprehensive (loss) income for the year | 70,000 | (280,000) | (61,000) | (128,132,000) | (7,774,000) | (136,177,000) | |||
Dividend payment to non-controlling interest | (2,708,000) | (2,708,000) | |||||||
Repurchase of common shares | $ (5,929,000) | (5,929,000) | |||||||
Repurchase of common shares, shares | (2,201,404) | ||||||||
Shares issued on vesting of share units | $ 2,525,000 | (2,006,000) | 519,000 | ||||||
Shares issued on vesting of share units, shares | 894,045 | ||||||||
Share-based payments | 3,421,000 | 3,421,000 | |||||||
Subtotal of transactions with owners of the Company | $ (3,404,000) | 1,415,000 | (2,708,000) | (4,697,000) | |||||
Subtotal of transactions with owners of the Company, shares | (1,307,359) | ||||||||
Equity at end of period at Dec. 31, 2022 | $ 1,076,342,000 | $ 28,850,000 | $ 198,000 | $ (976,000) | $ 4,825,000 | $ (2,968,000) | $ 138,485,000 | $ 43,940,000 | $ 1,288,696,000 |
Equity at end of period, shares at Dec. 31, 2022 | 290,221,971 |
NATURE OF OPERATIONS
NATURE OF OPERATIONS | 12 Months Ended |
Dec. 31, 2022 | |
NATURE OF OPERATIONS [abstract] | |
NATURE OF OPERATIONS | 1. NATURE OF OPERATIONS Fortuna Silver Mines Inc. (the “Company”) is a publicly traded company incorporated and domiciled in British Columbia, Canada . The Company is engaged in precious and base metal mining and related activities in Argentina, Burkina Faso, Mexico, Peru, and Côte d’Ivoire. The Company operates the open pit Lindero gold mine (“Lindero”) in northern Argentina, the underground Yaramoko gold mine (“Yaramoko”) in south western Burkina Faso, the underground San Jose silver and gold mine (“San Jose”) in southern Mexico, the underground Caylloma silver, lead, and zinc mine (“Caylloma”) in southern Peru, and is developing the open pit Séguéla gold mine (“Séguéla”) in south western Côte d’Ivoire. The Company’s common shares are listed on the New York Stock Exchange under the trading symbol FSM and on the Toronto Stock Exchange under the trading symbol FVI . The Company’s registered office is located at Suite 650 - 200 Burrard Street, Vancouver, Canada, V6C 3L6. |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2022 | |
BASIS OF PRESENTATION [abstract] | |
BASIS OF PRESENTATION | 2. BASIS OF PRESENTATION Statement of Compliance These consolidated financial statements (“financial statements”) have been prepared by management of the Company in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) effective as of December 31, 2022. On March 8, 2023, the Company's Board of Directors approved these financial statements for issuance. Basis of Measurement These financial statements have been prepared on a going concern basis under the historical cost basis, except for those assets and liabilities that are measured at fair value (Note 25) at the end of each reporting period. |
SIGNIFICANT ACCOUNTING POLICES
SIGNIFICANT ACCOUNTING POLICES | 12 Months Ended |
Dec. 31, 2022 | |
SIGNIFICANT ACCOUNTING POLICES [abstract] | |
SIGNIFICANT ACCOUNTING POLICES | 3. SIGNIFICANT ACCOUNTING POLICES The Company has consistently applied the following accounting policies to all periods presented in these financial statements. ( a) Basis of Consolidation These financial statements include the accounts of the Company. All significant intercompany transactions, balances, revenues, and expenses have been eliminated upon consolidation. Subsidiaries are included in the consolidated financial results of the Company from the effective date of acquisition or control and up to the effective date of disposition or loss of control. Control is achieved when the Company has power over the investee, is exposed to or has rights to variable returns from its involvement with an investee, and had the ability to affect those returns through its power over the investee. Fortuna Silver Mines Inc. is the ultimate parent entity of the group. At December 31, 2022, the principal subsidiaries of the Company, their geographic locations, and the ownership interests held by the Company, were as follows: Name Location Ownership Principal Activity Minera Bateas S.A.C. ("Bateas") Peru 100% Caylloma Mine Compania Minera Cuzcatlan S.A. de C.V. ("Cuzcatlan") Mexico 100% San Jose Mine Mansfield Minera S.A. ("Mansfield") Argentina 100% Lindero Mine Roxgold SANU S.A. (“Sanu”) Burkina Faso 90% Yaramoko Mine Roxgold SANGO S.A. ( “Sango”) Côte d’Ivoire 90% Séguéla Project (b) Business Combination A business combination is an acquisition of assets and liabilities that constitute a business. A business is an integrated set of activities and assets that consist of inputs and processes, including operational processes that, when applied to those inputs, have the ability to create outputs that provide a return to the Company and its shareholders. A business also includes those assets and liabilities that do not necessarily have all the inputs and processes required to produce outputs, but can be integrated with the inputs and processes of the Company to create outputs. When acquiring a set of activities or assets in the exploration and development stage, which may not have outputs, the Company considers other factors to determine whether the set of activities or assets is a business. Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred in a business combination is measured at fair value, which is allocated to the identifiable assets acquired and liabilities assumed based on the acquisition-date fair value. The excess of the cost of acquisition over the fair value of the Company’s share of the identifiable net assets acquired is recorded as goodwill. If the cost of acquisition is less than the fair value of the net assets acquired, the difference, or gain, is recognized directly in the consolidated statement of operations. The results of businesses acquired during the period are included in the financial statements from the date of acquisition. Acquisition-related costs are expensed as incurred. Provisional fair values are finalized within 12 months of the acquisition date. Measurement period adjustments are adjustments that arise from additional information obtained during the measurement period about facts and circumstances that existed at the acquisition date. (c) Non-Controlling Interests Non-controlling interests represents equity interests in subsidiaries owned by outside parties. Non-controlling interests are recorded at their proportionate share of the fair value of identifiable net assets acquired on initial recognition. The share of net assets of subsidiaries attributable to non-controlling interests is presented as a component of equity. Their share of net income and other comprehensive income is recognized directly in equity even if the results of the non-controlling interest have a deficit balance. The Company recognizes transactions with non-controlling interest as transactions with equity shareholders. Changes in the Company’s ownership interest in subsidiaries that do not result in loss of control are accounted for as equity transactions. (d) Consolidation, Functional and Presentation Currency These financial statements are presented in United States Dollars (“$” or “US$” or “US dollars”), which is the functional currency of the Company. Reference to C$ are to Canadian dollars. All amounts in these financial statements have been rounded to the nearest thousand US dollars, unless otherwise stated. The functional currency for each entity consolidated within the Company's financial statements is determined by the currency of the primary economic environment in which it operates. The functional currency of all subsidiaries is US dollars except for those outlined in the table below. Name of Subsidiary Place of Incorporation Beneficial Common Share Ownership Interest Principal Activity Functional Currency Roxgold Inc. Canada 100% Holding CAD FR Gold Mining Inc. Canada 100% Holding CAD Fortuna Silver Mines Australia Pty Ltd. Australia 100% Corporate AUD LGL Exploration Côte d’Ivoire SA Côte d’Ivoire 100% Exploration XOF LGL Resources Côte d’Ivoire SA Côte d’Ivoire 100% Exploration XOF Assets and liabilities of the subsidiaries that have a functional currency other than US dollar are translated into US dollars at the exchange rate in effect on the consolidated statements of financial position date and revenues and expenses are translated at the average rate over the reporting period. Gains and losses from these translations are recognized in other comprehensive income. Transactions in foreign currencies are initially recorded in the functional currency at the exchange rate at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange at each financial position date. Foreign exchange gains or losses on translation to the functional currency of an entity are recorded in profit or loss. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate as at the date of the initial transaction. (e) Cash, Cash Equivalents and Short-Term Investments Cash and cash equivalents include cash on hand, demand deposits, and money market instruments with maturities from the date of acquisition of 90 days or less, which are readily convertible to known amounts of cash and are subject to insignificant changes in value. Short-term investments consist of term deposits with original maturities in excess of three months but less than twelve months. Cash, cash equivalents and short-term investments are designated as amortized cost. (f) Inventories Inventories include mineral concentrates, doré, leach pad, gold in-circuit, stockpiled ore, materials and supplies, which are valued at the lower of average production cost and estimated net realizable value. Production costs allocated to metal inventories include direct mining costs, direct labour costs, direct material costs, mine site overhead, depletion and amortization. Stockpiled ore that is not expected to be processed within the next twelve months is classified as non-current. Costs allocated to materials and supplies are based on weighted average costs and include all costs of purchase and other costs in bringing these inventories to their existing location and condition. In the heap leaching process, ore is stacked on the leach pad and treated with a chemical solution that dissolves the gold contained within the ore. The resulting pregnant solution is further processed in a plant where the gold is recovered. The cost of leach pad inventory is based on cost of mining, crushing, and leaching, including applicable depletion and amortization, and is removed as ounces of gold are recovered at the weighted average cost per recoverable ounce of gold on the leach pad. Estimates of recoverable gold in the leach pad are calculated based on the quantities of ore placed on the leach pad (measured tonnes added to the leach pad), the estimated grade of ore placed on the leach pad (based on assay data), and an estimated recovery percentage (based on estimated recovery assumptions from metallurgical testing). The nature of the leaching process inherently limits the ability to precisely monitor inventory levels. As a result, estimates are refined based on actual results and engineering studies over a period of time. The final recovery of gold from leach pad will not be known until the leaching process is concluded at the end of the mine life. If the carrying value exceeds the net realizable amount, a write-down is recognized. The write-down may be reversed in a subsequent period if the circumstances which caused the write-down no longer exist, to the extent that the related inventory has not been sold. Net realizable value is calculated as the estimated price at the time of sale based on prevailing metal prices less estimated future costs to convert the inventories into saleable form and estimated costs to sell. (g) Exploration and Evaluation Assets Exploration expenditures on properties for which the Company does not have title or rights to are expensed when incurred. Significant payments related to the acquisition of land and mineral rights and the costs to conduct a preliminary evaluation to determine that the property has potential to develop an economic ore body are capitalized as incurred. The time between initial acquisition and a full evaluation of a property’s potential is dependent on many factors including, but not limited to, location relative to existing infrastructure, the property’s stage of development, geological controls and metal prices. The Company capitalizes the cost of acquiring, maintaining its interest, and exploring mineral properties as exploration and evaluation assets until such time as the properties are placed into development, abandoned, sold, or considered to be impaired in value. If a mineable ore body is discovered, exploration and evaluation costs are reclassified to mining properties. The Company uses the following criteria in its assessment: ● the property has mineral reserves as referred to in Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”), and ● when legal, permitting, and social matters have been resolved sufficiently to allow mining of the ore body. Exploration and evaluation assets are tested for impairment when an indicator of impairment is identified and upon reclassification to mining properties. If no mineable ore body is discovered, all previously capitalized costs are expensed in the period in which it is determined the property has no economic value. Proceeds received from the sale of interests in exploration and evaluation assets are credited to the carrying value of the mineral properties, plant and equipment. Exploration costs that do not relate to any specific property are expensed as incurred. (h) Mineral Properties, and Property, Plant and Equipment i. Mineral Properties and Development Costs For operating mines, all mineral property expenditures are capitalized and amortized based on a unit-of-production method considering the expected production to be obtained over the life of the mineral property. The expected production includes proven and probable reserves and for the San Jose, Caylloma and Yaramoko mines the portion of inferred resources expected to be extracted economically as part of the production cost. Capitalized costs of producing properties are amortized on a unit-of-production basis over proven and probable reserves and the portion of inferred resources where it is considered highly probable that those resources are expected to be extracted economically. The expected production to be obtained over the life of the mineral property is based on our life-of-mine production plans which for San Jose, Caylloma and Yaramoko include a portion of inferred resources, and therefore differ from the life-of-mine plans the Company publishes as part of our NI 43-101 compliant technical reports which are based on reserves only. The decision to use inferred resources, and the portion of inferred resources to be included varies for each operation and is based on the geological characteristics of the ore body, the quality and predictability of inferred resources, and the conversion of inferred resources into measured and indicated (“M&I”) that the Company has historically achieved in the past. Many factors are taken into account during resource classification including; the quality of drilling and sampling, drill/sample spacing, sample preparation and analysis, geological logging and modelling, database construction, geological interpretation and modelling, statistical/geostatistical analysis, interpolation method, local estimation, engineering studies, economic parameters, and reconciliation with actual results. Once the integrity of the data has been established, two important considerations around classification of resources are geologic continuity and possible variation of thickness and grade between samples. For our inferred resources at San Jose, Caylloma and Yaramoko we are able to achieve a significant level of confidence on the existence of mineable material as geological continuity has been established by consistent drill hole intercepts both along strike and down-dip which provides us with reasonable confidence in the location of the structures. The vast majority of the inferred resources are interpolated, estimated between existing drill hole intercepts, as opposed to extrapolated where the grades are estimated beyond the furthest sample point, adding to our confidence in the geologic continuity of the veins. Furthermore, San Jose, Caylloma and Yaramoko are not structurally complex deposits where faulting has disrupted geologic continuity. With regards to the variation of thickness and grade between samples, the Company uses statistical means to calculate the probability that tonnage and grade content falls within a certain accuracy over a given timeframe. If the potential variation is estimated to be within ± 25% at 90% confidence globally, it is classified as an inferred resource. This is equivalent to stating that the Company has 95% confidence that greater than 75% of the inferred tonnes, grade, and metal content will ultimately be recovered by the mine and hence that the same percentage or higher will be converted from an inferred resource to an indicated resource through infill drilling as per the Company’s policy of upgrading prior to production. As part of the process to include inferred resources into our life-of-mine production plans, the Company applies an economic cut-off to identify only the material that can be considered profitable to mine within our mine designs, and at this time we apply a conversion or “risk” factor to the mining blocks comprised of inferred resources that we include in such mine production plans. This conversion factor is based on the predictability of conversion derived from statistical estimates of confidence as described above and the support from historic conversion rates of inferred resources into M&I at each of our mines. The conversion factors used in our 2022 and 2021 life-of-mine plans were 90% at San Jose, 90% at Caylloma, and 100% at Yaramoko. The percentage of inferred resources included as a component of the total mineable inventory (reserve and resource) considered in the 2022 life-of-mine evaluation for each operation as of December 31, 2022, was San Jose 31% (2021: 35% ), Caylloma 41% (2021: 31% ), and Yaramoko 8% (2021: 11% ). The Company reviews the conversion factors including past experience in assessing the future expected conversion of inferred resources to be used in the life-of-mine plans for inclusion of inferred resources once a year in light of new geologic information and conversion data and when events or circumstances indicate that a review should be made. The Company continually monitors expected conversion and any changes in estimates that arise from this review are accounted for prospectively. Significant estimation is involved in determining resources and in determining the percentage of resources ultimately expected to be converted to reserves, which we determine based on careful consideration of both internal and external technical and economic data. Estimation of future conversion of resources is inherently uncertain and involves significant judgment and actual outcomes may vary from these judgments and estimates and such outcomes may have a material impact on the results. Revisions to these estimates are accounted for in the period in which the change in the estimate arises. ii. Property, Plant and Equipment Property, plant and equipment are recorded at cost, net of accumulated depreciation and impairments. Costs directly related to construction projects are capitalized to work in progress until the asset is available for use in the manner intended by management. Assets, other than capital works in progress, are depreciated to their residual values over their estimated useful lives as follows: Land and buildings Land Not depreciated Mineral properties Units of production Declining balance Buildings, located at the mine Units of production Declining balance Buildings, others (1) 6 - 10 years Straight line Leasehold improvements (1) 4 - 8 years Straight line Plant and equipment Processing plant Units of production Declining balance Machinery and equipment (1) 3 - 12 years Straight line Furniture and other equipment (1) 2 - 12 years Straight line Transport units 4 - 5 years Straight line Capital work in progress Not depreciated (1) The lesser of useful life or life of mine. Equipment under finance lease is initially recorded at the present value of minimum lease payments at the inception of the lease and depreciated over the shorter of the lease term or useful life. Spare parts and components included in machinery and equipment are depreciated over the shorter of the useful life of the component or the related machinery and equipment. Borrowing costs attributed to the construction of qualifying assets are capitalized to mineral properties, plant and equipment, and are included in the carrying amounts of related assets until the asset is available for use in the manner intended by management. The sales proceeds and associated production costs incurred during commissioning of qualifying assets under capital works in progress are recognized in profit or loss. On an annual basis, the depreciation method, useful economic life, and residual value of each component asset is reviewed with any changes recognized prospectively over its remaining useful economic life. iii. Stripping cost Pre-production stripping costs are generally capitalized and amortized over the production life of the mine using the unit-of-production method. Stripping costs incurred during the production stage are incurred in order to produce inventory or to improve access to ore which will be mined in the future. Where the costs are incurred to produce inventory, the production stripping costs are accounted for as a cost of producing those inventories. Where the costs are incurred to improve access to ore which will be mined in the future, the costs are deferred and capitalized to the statement of financial position as a stripping activity asset (included in mining interest) if the following criteria are met: ● improved access to the ore body is probable; ● the component of the ore body can be accurately identified; and ● the costs relating to the stripping activity associated with the component can be reliably measured. If these criteria are not met, the costs are expensed in the period in which they are incurred. The stripping activity asset is subsequently depleted using the units-of-production depletion method over the life of the identified component of the ore body to which access has been improved as a result of the stripping activity. (i) Asset Impairment At the end of each reporting period, the Company assesses for impairment indicators and if there are such indicators, then the Company performs a test of impairment. For the purpose of assessing impairment, assets are grouped at the lowest level for which there are separately identifiable cash inflows or cash generating units. These are typically individual mines or development projects. Brownfields exploration projects, located close to existing mine infrastructure, are assessed for impairment as part of the associated mine cash generating unit. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less cost of disposal (“FVLCD”) and value in use. When the recoverable amount is assessed using pre-tax discounted cash flow techniques, the resulting estimates are based on detailed mine and/or production plans. For value in use, recent cost levels are considered, together with expected changes in costs compatible with the current condition of the business. The cash flow forecasts are based on best estimates of the expected future revenues and costs, including the future cash costs of production, sustaining capital expenditures, and reclamation and closure costs. Where a FVLCD model is used, the cash flow forecast includes net cash flows expected to be realized from extraction, processing, and sale of mineral resources that do not currently qualify for inclusion in proven or probable reserves and the portion of resources expected to be extracted economically. Where an impairment loss subsequently reverses, the carrying amount of the asset or cash-generating unit is increased to the revised estimate of recoverable amount but not beyond the carrying amount, net of depreciation and amortization, that would have been determined had no impairment loss been recognized for the asset or cash-generating unit in prior years. A reversal of an impairment loss is recognized into earnings immediately. (j) Borrowing Costs Interest and other financing costs incurred that are attributable to acquiring and developing exploration and development stage mining properties and constructing new facilities (“qualifying assets”), are capitalized and included in the carrying amounts of qualifying assets until those qualifying assets are capable of operating in the manner intended by management. The capitalization of borrowing costs incurred commences on the date when the following three conditions are met: ● expenditures for the qualifying asset are being incurred; ● borrowing costs are being incurred; and, ● activities that are necessary to prepare the qualifying asset for its intended use are being undertaken. Borrowing costs incurred after the qualifying assets are substantially complete are expensed. Transaction costs, including legal, upfront commitment fees and other costs of issuance, associated with debt are recorded against the debt and are amortized over the term of the credit facility using the effective interest rate method. All other borrowing costs are expensed in the period in which they are incurred. (k) Assets Held for Sale A non-current asset is classified as held for sale when it meets the following criteria: ● The non-current asset is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets; and, ● the sale of the non-current asset is highly probable. For the sale to be highly probable: o the appropriate level of management must be committed to a plan to sell the asset; o an active program to locate a buyer and complete the plan must have been initiated; o the non-current asset or disposal group must be actively marketed for sale at a price that is reasonable in relation to its current fair value; o the sale should be expected to qualify for recognition as a completed sale within one year from the date of classification as held for sale (with certain exceptions); and o actions required to complete the plan should indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. Assets held for sale are not depreciated and are recorded at the lower of their carrying amount and fair value less costs to sell. (l) Income Taxes Income tax expense consists of current and deferred tax expense. Current tax expense is the expected tax payable on the taxable income for the year using tax rates enacted or substantively enacted at period end adjusted for amendments to tax payable with regards to previous years. Deferred tax assets and liabilities are recognized for deferred tax consequences attributable to unused tax loss carry forwards, unused tax credits, and differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis (“temporary differences”). Deferred tax assets and liabilities are measured using the enacted or substantively enacted tax rates expected to apply when the asset is realized, or the liability is settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in profit or loss in the period that substantive enactment occurs. A deferred tax asset is recognized to the extent that it is probable that future taxable income will be available against which the asset can be utilized. To the extent that the Company does not consider it probable that a deferred tax asset will be recovered, the deferred tax asset is reduced. The following temporary differences do not result in deferred tax assets or liabilities: ● the initial recognition of assets or liabilities, not arising in a business combination, that does not affect accounting or taxable income; ● goodwill; and ● investments in subsidiaries, associates and jointly controlled entities where the timing of reversal of the temporary differences can be controlled and reversal in the foreseeable future is not probable. Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities, and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis. (m) Provisions i. Closure and Reclamation Provisions Future obligations to retire an asset, including dismantling, remediation and ongoing treatment and monitoring of the site related to normal operation are initially recognized and recorded as a liability based on estimated future cash flows discounted at the risk-free rate. The closure and reclamation provision (“CRP”) is adjusted at each reporting period for changes to the expected amount of cash flows required to discharge the liability, the timing of such cash flows and the risk-free discount rate. The liability is accreted to full value over time through periodic charges to profit or loss. The amount of the CRP initially recognized is capitalized as part of the related asset’s carrying value and amortized to profit or loss. The method of amortization follows that of the underlying asset. The costs related to a CRP are only capitalized to the extent that the amount meets the definition of an asset and can bring about future economic benefit. For a closed site or where the asset which generated a CRP no longer exists, there is no longer a future benefit related to the costs and as such, the amounts are expensed. Revisions in estimates or new disturbances result in an adjustment to the CRP with an offsetting adjustment to the asset, unless there is no future benefit, in which case they are expensed. Due to uncertainties inherent in environmental remediation, the ultimate cost of future site closure and reclamation could differ from the amounts provided. The estimate of future site closure and reclamation costs is subject to change based on amendments to laws and regulations, changes in technologies, price increases and changes in interest rates, and as new information concerning the Company’s closure and reclamation obligations becomes available. Such changes are reflected prospectively in the determination of the provision. ii. Environmental Disturbance Restoration Provisions During the operating life of an asset, events such as infractions of environmental laws or regulations may occur. These events are not related to the normal operation of the asset and are referred to as environmental disturbance restoration provisions (“EDRP”). The costs associated with an EDRP are accrued and charged to earnings in the period in which the event giving rise to the liability occurs. Any subsequent adjustments to an EDRP due to changes in estimates are also charged to earnings in the period of adjustment. These costs are not capitalized as part of the long-lived asset’s carrying value. iii. Other Provisions Provisions are recognized when a present legal or constructive obligation exists as a result of past events, and it is probable that an outflow of resources that can be reliably estimated will be required to settle the obligation. Where the effect of the time value of money is material the provision is discounted using an appropriate current market based pre-tax discount rate. (n) Common Share Capital Shares are classified as equity. Costs directly attributable to the issuance of common shares are shown in equity as a deduction from the proceeds. (o) Share-Based Payments The fair value method of accounting is used for share-based payment transactions. Under this method, the cost of stock options and other equity-settled share-based payment arrangements are recorded based on the estimated fair value at the grant date and charged to earnings over the vesting period. Where awards are forfeited because non-market based vesting conditions were not satisfied, the expense previously recognized is reversed in the period the forfeiture occurs. Share-based payment expenses relating to cash-settled awards, including deferred share units, restricted share units, and performance share units, are accrued and expensed over the vesting period based on the quoted market value of the Company’s common shares. As these awards will be settled in cash, the expense and liability are adjusted at each reporting period for any changes in the underlying share price. Equity settled share-based payment transactions with parties other than employees are measured at the fair value of the goods or services received, except where that fair value cannot be estimated reliably, in which case they are measured at the fair value of the equity instruments granted, measured at the date the Company obtains the goods or the counter party renders the services. i. Stock Option Plan The Company applies the fair value method of accounting for all stock option awards. Under this method, the Company recognizes a compensation expense for all stock options awarded to employees, based on the fair value of the options on the date of grant which is determined by using the Black-Scholes option pricing model. The fair value of the options is expensed over the graded vesting period of the options. ii. Deferred Share Unit Plan Deferred share units (“DSU”) are typically granted to non-executive directors of the Company. They are payable in cash upon resignation, retirement, removal, failure to achieve re-election, or upon a change of control of the Company. The DSU compensation liability is accounted for based on the number of DSUs outstanding and the quoted market value of the Company’s common shares at the financial position date. The year-over-year change in the DSU compensation liability is recognized in profit or loss. iii. Share Unit Plans The Company’s amended and restated share unit plan (the “SU Plan”) covers all restricted share units (“RSUs”) and performance share units (“PSUs”) granted by the Company on and after March 1, 2015. Restricted Share Units The Company’s RSUs are settled in either cash or equity, as determined by the Company’s Board of Directors at the grant date and typically vest over three years . For cash settled RSUs, the share-based payment expense is adjusted at each reporting period to reflect any change in the quoted market price of the Company’s common shares and the vesting of each RSU grant, with a corresponding amount recorded in Trade and Other Payables, and Other Non-Current Liabilities. For equity-settled RSUs, the fair valu |
USE OF ESTIMATES, ASSUMPTIONS,
USE OF ESTIMATES, ASSUMPTIONS, AND JUDGEMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Use of Estimates, Assumptions and Judgements [abstract] | |
USE OF ESTIMATES, ASSUMPTIONS, AND JUDGEMENTS | 4. USE OF ESTIMATES, ASSUMPTIONS, AND JUDGEMENTS The preparation of these financial statements requires management to make estimates and judgements that affect the reported amounts of assets and liabilities at the period end date and reported amounts of expenses during the reporting period. Such judgements and estimates are, by their nature, uncertain. Actual outcomes could differ from these estimates. The impact of such judgements and estimates are pervasive throughout the financial statements, and may require accounting adjustments based on future occurrences. These judgements and estimates are continuously evaluated and are based on management’s experience and knowledge of the relevant facts and circumstances. Revisions to accounting estimates are recognized in the period in which the estimate is revised and are accounted for prospectively. In preparing these consolidated financial statements for the year ended December 31, 2022, the Company applied the critical estimates, assumptions and judgements as disclosed below. (a) Critical Accounting Estimates and Assumptions Areas where critical accounting estimates and assumptions have the most significant effect on the amounts recognized in the consolidated financial statements include: i. Mineral Reserves and Resources and the Life of Mine Plan The Company estimates its mineral reserves and mineral resources in accordance with the requirements of NI 43-101. Estimates of the quantities of the mineral reserves and mineral resources form the basis for the Company’s life of mine plans, which are used for the calculation of depletion expense under the units of production method, impairment tests, and forecasting the timing of the payments related to the environmental reclamation provision. Significant estimation is involved in determining the reserves and resources included within the Company’s life of mine plans. Changes in forecast prices of commodities, exchange rates, production costs or recovery rates may result in the Company’s life-of-mine plan being revised and such changes could impact depletion rates, asset carrying values and the environmental reclamation provision. As at December 31, 2022, the Company used the following long-term prices for the reserve and resource estimations: gold $1,600 /oz, silver $21 /oz, lead $2,100 /t and zinc $2,600 /t. In addition to the estimates above, estimation is involved in determining the percentage of resources ultimately expected to be converted to reserves and hence included in the Company’s life of mine plans. The Company’s life of mine plans include a portion of inferred resources as the Company believes this provides a better estimate of the expected life of mine for certain types of deposits, in particular for vein type structures. The percentage of inferred resources out of the total tonnage included in the life of mine plans is based on site specific geological, technical, and economic considerations. Estimation of future conversion of resources is inherently uncertain and involves judgement, and actual outcomes may vary from these judgements and estimates and such changes could have a material impact on the financial results. Some of the key assumptions in the estimation process include geological continuity, stationarity in the grades within defined domains, reasonable geotechnical and metallurgical conditions, treatment of outlier (extreme) values, cut-off grade determination and the establishment of geostatistical and search parameters. Revisions to these estimates are accounted for prospectively in the period in which the change in estimate arises. ii. Valuation of Mineral Properties and Exploration Properties The Company carries its mineral properties at cost less accumulated depletion and any accumulated impairment. The costs of each property and related capitalized expenditures are depleted over the economic life of the property on a units-of-production basis. When a property is abandoned or when there is an impairment, costs are charged to profit or loss. The Company undertakes a review of the carrying values of mining properties and related expenditures whenever events or changes in circumstances indicate that their carrying values may exceed their estimated recoverable amounts determined by reference to estimated future operating results and discounted net cash flows. Where previous impairment has been recorded, the Company analyzes any impairment reversal indicators. An impairment loss is recognized when the carrying value of those assets is not recoverable. In undertaking this review, management of the Company is required to make significant estimates of, amongst other things, future production and sales volumes, metal prices, discount rates, mineral resource and reserve quantities, future operating and capital costs to the end of the mine’s life, and reclamation costs. These estimates are subject to various risks and uncertainties which may ultimately have an effect on the expected recoverability of the carrying values of the mining properties and related expenditures. The Company, from time to time, acquires exploration and development properties. When properties are acquired, the Company must determine the fair value attributable to each of the properties. When the Company conducts exploration on a mineral property and the results from the exploration do not support the carrying value, the property is written down to its new fair value which could have a material effect on the consolidated statement of financial position and the consolidated income statement. iii. Deferred stripping costs In determining whether stripping costs incurred during the production phase of a mining property relate to mineral reserves that will be mined in a future period and therefore should be capitalized, the Company makes estimates of the proportion of stripping activity which relates to extracting ore in the current period versus the proportion which relates to obtaining access to ore reserves which will be mined in the future. iv. Inventory Finished goods, work-in-process, heap leach ore, and stockpile ore are valued at the lower of the average production costs or net realizable value. The assumptions used in the valuation of work-in process inventories include estimates of gold contained in the ore stacked on leach pads, assumptions of the amount of gold stacked that is expected to be recovered from the leach pads, the amount of gold in the mill circuits and assumption of the gold price expected to be realized when the gold is recovered. If these estimates or assumptions prove to be inaccurate, the Company could be required to write-down the recorded value of its work-in-process inventories, which would reduce the Company's earnings and working capital. v. Reclamation and Other Closure Provisions The Company has obligations for reclamation and other closure activities related to its mining properties. The future obligations for mine closure activities are estimated by the Company using mine closure plans or other similar studies which outline the requirements that will be carried out to meet the obligations. Because the obligations are dependent on the laws and regulations of the countries in which the mines operate, the requirements could change as a result of amendments in the laws and regulations relating to environmental protection and other legislation affecting resource companies. As the estimate of the obligations is based on future expectations, a number of estimates and assumptions are made by management in the determination of closure provisions. vi. Revenue from metal in concentrate The Company’s sales of metal in concentrates allow for price adjustments based on the market price at the end of the relevant quotational period (“QP”) stipulated in the contract. These are referred to as provisional pricing arrangements and are such that the selling price for metal in concentrate is based on the prevailing spot price on a specified future date. At each balance sheet date, the Company estimates the value of the trade receivable using forward metal prices. Adjustments to the sale price occur based on movements in quoted market prices up to the end of the QP. The period between provisional invoicing and the end of the QP is generally between one and three months. Any future changes over the QP are embedded within the provisionally priced trade receivables and are, therefore, within the scope of IFRS 9 and not within the scope of IFRS 15. As such, the provisional price adjustments are accounted for as derivatives and presented separately in Note 19 of these financial statements. vii. Contingencies Contingencies can be either possible assets or possible liabilities arising from past events which, by their nature, will only be resolved when one or more future events not within our control occur or fail to occur. The assessment of such contingencies inherently involves the exercise of significant judgement and estimates of the outcome of future events. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings or regulatory or government actions that may negatively impact our business or operations, the Company with assistance from its legal counsel evaluates the perceived merits of any legal proceedings or unasserted claims or actions. A liability is recognized in the consolidated financial statements when the outcome of the legal proceedings is probable and the estimated settlement amount can be estimated reliably. Contingent assets are not recognized in the consolidated financial statements until virtually certain. (b) Critical Accounting Judgements in Applying the Entity’s Accounting Policies Judgements that have the most significant effect on the amounts recognized in the Company’s consolidated financial statements are as follows: i. Income Taxes Deferred tax assets and liabilities are determined based on differences between the financial statement carrying values of assets and liabilities and their respective income tax bases and losses carried forward. The determination of the ability of the Company to utilize tax loss carryforwards to offset deferred tax liabilities requires management to exercise judgement and make certain assumptions about the future performance of the Company. Management is required to assess whether it is “probable” that the Company will benefit from these prior losses and other deferred tax assets. Changes in economic conditions, metal prices and other factors could result in revisions to the estimates of the benefits to be realized or the timing of utilization of the losses. ii. Assessment of Impairment and Reversal of Impairment Indicators Management applies significant judgement in assessing whether indicators of impairment or impairment reversal exist for an asset or a group of assets. External sources of information the Company considers include changes in the market, economic and legal environment in which the Company operates that are not within its control and affect the recoverable amount of mining interests. Internal sources of information the Company considers include the manner in which mining properties and plant and equipment are being used or are expected to be used, and indicators of economic performance of the assets. iii. Functional Currency The functional currency for the Company and its subsidiaries is the currency of the primary economic environment in which each operates. The determination of functional currency may require certain judgements to determine the primary economic environment. The Company reconsiders the functional currency used when there is a change in the events and conditions which determined the primary economic environment. iv. Leases Significant judgements made by management in the accounting for leases primarily included whether the lease conveys the right to use a specific asset, whether the Company obtains substantially all of the economic benefits from the use of the asset, whether the Company has the right to direct the use of the asset, evaluating the appropriate discount rate to use to discount the lease liability for each lease or groups of assets, and to determine the lease term where a contract includes renewal options. Significant judgements over these factors would affect the present value of the lease liabilities, as well as the associated amount of the right-of-use (“ROU”) asset. v. Value-added tax (“VAT”) receivable Timing of collection of VAT receivables is uncertain as VAT refund procedures require a significant amount of information and follow-up. The Company assesses the recoverability of the amounts receivable at each reporting date and the expected timing of the recovery, which are impacted by several factors, including the status of discussions with the tax authorities, and current interpretation of relevant VAT legislation and regulation. Changes in these judgements can materially affect the amount recognized as VAT receivable and could result in an increase in other expenses recognized in profit or loss and the presentation of current and non-current VAT receivable. |
TRADE AND OTHER RECEIVABLES
TRADE AND OTHER RECEIVABLES | 12 Months Ended |
Dec. 31, 2022 | |
TRADE AND OTHER RECEIVABLES [abstract] | |
TRADE AND OTHER RECEIVABLES | 5. TRADE AND OTHER RECEIVABLES As at December 31, 2022 December 31, 2021 Trade receivables from doré and concentrate sales $ 23,977 $ 25,718 Advances and other receivables 7,443 4,424 Value added taxes recoverable 36,745 46,345 Trade and other receivables $ 68,165 $ 76,487 The Company’s trade receivables from concentrate and doré sales are expected to be collected in accordance with the terms of the existing concentrate and doré sales contracts with its customers. No amounts were past due as at December 31, 2022 and 2021. During the year ended December 31, 2021, the Company recognized a provision of $0.9 million related to estimated VAT receivables expected to be sold in the next twelve months. This provision was reversed during the year ended December 31, 2022. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2022 | |
INVENTORIES [abstract] | |
INVENTORIES | 6. INVENTORIES As at Note December 31, 2022 December 31, 2021 Concentrate stockpiles $ 2,161 $ 1,711 Doré bars 4,494 3,456 Leach pad and gold-in-circuit 31,649 30,321 Ore stockpiles 52,692 39,292 Materials and supplies 44,476 31,437 Total inventories $ 135,472 $ 106,217 Less: non-current portion 9 (43,439) (20,398) Current inventories $ 92,033 $ 85,819 During the year ended December 31, 2022, the Company expensed $481.5 million of inventories to cost of sales (December 31, 2021 – $346.4 million). During the year ended December 31, 2022, a charge of $8.9 million was recognized to reduce low grade stockpiles at Lindero and Yaramoko to net realizable value (December 31, 2021 - $7.0 million). Included in the charge was $3.4 million related to depletion and depreciation (December 31, 2021 - $2.8 million). |
OTHER CURRENT ASSETS
OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
OTHER CURRENT ASSETS [abstract] | |
OTHER CURRENT ASSETS | 7. OTHER CURRENT ASSETS As at December 31, 2022 December 31, 2021 Derivatives $ 19 $ 1,490 Prepaid expenses 11,180 8,060 Investments in equity securities 78 416 Assets held for sale 26 - Income tax receivable 718 1,713 Other current assets $ 12,021 $ 11,679 |
MINERAL PROPERTIES AND PROPERTY
MINERAL PROPERTIES AND PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about property, plant and equipment [line items] | |
MINERAL PROPERTIES AND PROPERTY, PLANT AND EQUIPMENT | 8. MINERAL PROPERTIES AND PROPERTY, PLANT AND EQUIPMENT Mineral Properties - Depletable Mineral Properties - Non depletable Construction in Progress Property, Plant & Equipment Total COST Balance at December 31, 2021 $ 758,112 $ 719,663 $ 57,759 $ 675,486 $ 2,211,020 Additions 74,301 35,468 117,860 14,255 241,884 Changes in closure and reclamation provision (10,024) 5,238 - (235) (5,021) Disposals (372) (5,502) - (3,313) (9,187) Transfers 44,982 (42,598) (20,972) 18,588 - Balance at December 31, 2022 $ 866,999 $ 712,269 $ 154,647 $ 704,781 $ 2,438,696 ACCUMULATED DEPLETION AND IMPAIRMENT Balance at December 31, 2021 $ 275,460 $ - $ - $ 223,206 $ 498,666 Disposals - - - (1,970) (1,970) Impairment (Note 30) 117,237 - - 65,605 182,842 Depletion and depreciation 113,571 - - 77,966 191,537 Balance at December 31, 2022 $ 506,268 $ - $ - $ 364,807 $ 871,075 Net Book Value at December 31, 2022 $ 360,731 $ 712,269 $ 154,647 $ 339,975 $ 1,567,622 During the year ended December 31, 2022, the Company capitalized $3.3 million of interest related to the construction of the Séguéla Mine (2021 - $nil ). As at December 31, 2022, non-depletable mineral properties include $26.4 million of exploration and evaluation assets (2021 - $22.0 million). As at December 31, 2022, property, plant and equipment includes right-of-use assets with a carrying value of $21.5 million (2021 - $29.4 million). Related depletion and depreciation for the year was $9.5 million (2021 - $7.2 million). Mineral Properties - Depletable Mineral Properties - Non depletable Construction in Progress Property, Plant & Equipment Total COST Balance at December 31, 2020 $ 327,414 $ 250,145 $ 188,960 $ 378,754 $ 1,145,273 Acquisition of Roxgold 112,499 697,537 15,047 70,453 895,536 Additions 1 54,882 12,467 81,343 23,433 172,125 Changes in closure and reclamation provision 2,262 1,552 - (85) 3,729 Disposals - - - (5,643) (5,643) Transfers 261,055 (242,038) (227,591) 208,574 - Balance at December 31, 2021 $ 758,112 $ 719,663 $ 57,759 $ 675,486 $ 2,211,020 ACCUMULATED DEPLETION Balance at December 31, 2020 $ 191,842 $ - $ - $ 162,304 $ 354,146 Disposals - - - (4,319) (4,319) Depletion and depreciation 83,618 - - 65,221 148,839 Balance at December 31, 2021 $ 275,460 $ - $ - $ 223,206 $ 498,666 Net Book Value at December 31, 2021 $ 482,652 $ 719,663 $ 57,759 $ 452,280 $ 1,712,354 1 Included in additions to Construction in Progress is $47.1 million related to the Séguéla project previously classified as additions to Mineral Properties – Non-depletable. |
OTHER ASSETS
OTHER ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
Other Assets [abstract] | |
OTHER ASSETS | 9. OTHER NON-CURRENT ASSETS As at Note December 31, 2022 December 31, 2021 Ore stockpiles 6 $ 43,439 $ 20,398 Value added tax recoverable 3,642 3,426 Income tax recoverable 1,137 1,087 Other long-term assets 3,705 1,519 Total other non-current assets $ 51,923 $ 26,430 |
TRADE AND OTHER PAYABLES
TRADE AND OTHER PAYABLES | 12 Months Ended |
Dec. 31, 2022 | |
TRADE AND OTHER PAYABLES [abstract] | |
TRADE AND OTHER PAYABLES | 10. TRADE AND OTHER PAYABLES As at Note December 31, 2022 December 31, 2021 Trade accounts payable $ 72,571 $ 82,533 Payroll and related payables 22,967 23,311 Mining royalty payable 2,476 2,416 Other payables 7,794 12,161 Derivative liabilities 270 3,077 Share units payable 16(a)(b)(c) 5,818 10,307 Total trade and other payables $ 111,896 $ 133,805 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2022 | |
RELATED PARTY TRANSACTIONS [abstract] | |
RELATED PARTY TRANSACTIONS | 11. RELATED PARTY TRANSACTIONS In addition to the related party transactions and balances disclosed elsewhere in these financial statements, the Company entered into the following related party transactions during the years ended December 31, 2022, and 2021: (a) Purchase of Goods and Services During the year ended December 31, 2021, the Company was charged $5 thousand for general and administrative services pursuant to a shared services agreement with Gold Group Management Inc., a company of which Simon Ridgway, the Company’s former Chairman, is a director. Effective February 2, 2021, Mr. Ridgway resigned as director and Chairman of the Board, and costs incurred with Gold Group Management Inc. are no longer reported as related party transactions. (b) Key Management Personnel During the years ended December 31, 2022, and 2021 , the Company was charged for consulting services by Mario Szotlender, a director of the Company. During the year ended December 31, 2021, the Company was charged consulting services by Mill Street Services Ltd., a company of which Mr. Ridgway, the Company’s former Chairman, is a director. Effective February 2, 2021, Mr. Ridgway resigned as director and Chairman of the Board, and costs associated incurred with Mill Street Services Ltd. are no longer reported as related party transactions. Amounts paid to key management personnel were as follows: Years ended December 31, 2022 2021 Salaries and benefits $ 11,532 $ 7,639 Directors fees 934 658 Consulting fees 69 78 Share-based payments 7,042 2,565 $ 19,577 $ 10,940 |
LEASE OBLIGATIONS
LEASE OBLIGATIONS | 12 Months Ended |
Dec. 31, 2022 | |
LEASE OBLIGATIONS | |
LEASE OBLIGATIONS | 12. LEASE OBLIGATIONS Minimum lease payments As at December 31, 2022 December 31, 2021 Less than one year $ 11,343 $ 12,292 Between one and five years 14,044 13,380 More than five years 5,806 15,983 31,193 41,655 Less: future finance charges (9,847) (12,250) Present value of minimum lease payments 21,346 29,405 Less: current portion (9,416) (10,523) Non-current portion $ 11,930 $ 18,882 |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2022 | |
Debt [abstract] | |
DEBT | 13. DEBT The following table summarizes the changes in debt: Credit Facility Convertible debentures Total Balance at December 31, 2020 $ 119,850 38,766 $ 158,616 Transaction costs (3,036) - (3,036) Acquisition of Roxgold 31,711 - 31,711 Amortization of discount 242 1,641 1,883 Extinguishment of debt 603 - 603 Payments (32,288) - (32,288) Balance at December 31, 2021 117,082 40,407 157,489 Convertible debenture conversion - (60) (60) Drawdown 80,000 - 80,000 Transaction costs (688) - (688) Amortization of discount 626 1,808 2,434 Payments (20,000) - (20,000) Balance at December 31, 2022 $ 177,020 $ 42,155 $ 219,175 (a) Credit Facilities On November 4, 2021, the Company entered into a fourth amended and restated credit agreement (the “Amended Credit Facility”) effective November 5, 2021, with a syndicate of banks led by BNP Paribas, and including The Bank of Nova Scotia, Bank of Montreal and Société Générale, which converted the Company’s prior non-revolving and revolving facilities with the Bank of Nova Scotia and BNP Paribas (the “Scotiabank Facility”) into a revolving term credit facility and increased the amount of the facility from $120.0 million to $200.0 million, subject to the conditions described below. The facility has a term of four years and steps down to $150.0 million after three years. Interest accrues on LIBOR loans under the facility at LIBOR plus an applicable margin of between two and three percent, which varies according to the consolidated leverage levels of the Company, as defined in the Amended Credit Facility. Effective December 15, 2022, the Company executed a second amendment to the fourth Amended Credit Facility. The amendment increased the amount of the facility from $200.0 million to $250.0 million and increased the amount of the step down of the facility from $150.0 million to $175.0 million in November 2024. The amendment also introduced an uncommitted $50.0 million accordion option, exercisable from June 1, 2023, to October 2024. LIBOR loans under the facility were converted to Term Benchmark loans, with the interest base rate on these loans converting from LIBOR to an adjusted SOFR rate. The applicable loan margins increased by 25 basis points across all levels of the margin grid, and the commitment fee rate increased by 9 to 12 basis points. The counterparties, guarantors, covenants, step down date and maturity date of the Amended Credit Facility were unchanged. The transaction costs in connection with the second amendment will be amortized over the remaining term of the Amended Credit Facility. The Company’s principal operating subsidiaries in Mexico, Peru, Côte d’Ivoire and Burkina Faso, and their respective direct and indirect holding companies, have guaranteed the obligations of the Company contemplated by the Amended Credit Facility. The Company has pledged all of its assets to secure the payment of its obligations contemplated by the Amended Credit Facility. The Company’s principal operating subsidiaries in Mexico and Peru, as well as their direct and indirect holding companies have pledged all of their respective assets to secure their respective guarantees of such payment, including the shares of the Company’s principal operating subsidiaries in Mexico and Peru. The Company’s principal operating subsidiary in Burkina Faso has pledged its bank accounts to secure the obligations under its guarantee and the holding companies of the Company’s principal operating subsidiaries in Burkina Faso and Côte d’Ivoire have pledged the shares of those principal operating subsidiaries to secure the obligations under their guarantees. The Amended Credit Facility includes covenants customary for a facility of this nature including, among other matters, reporting requirements, and positive, negative, and financial covenants set out in therein. As at December 31, 2022, the Company was in compliance with all of the covenants under the Credit Facility. (b) Convertible Debentures On October 2 and 6, 2019, the Company completed a bought deal public offering of senior subordinated unsecured convertible debentures with an aggregate principal amount of $46.0 million (the “Debentures”). The Debentures mature on October 31, 2024 and bear interest at a rate of 4.65% per annum, payable semi-annually in arrears on the last business day of April and October, commencing on April 30, 2020. For the year ended December 31, 2022, the Company paid $2.1 million in interest on the Debentures. The Debentures are convertible at the holder’s option into common shares in the capital of the Company at a conversion price of $5.00 per share (the “Conversion Price”), representing a conversion rate of 200 Common Shares per $1 thousand principal amount of Debentures, subject to adjustment in certain circumstances. On or after October 31, 2022 and prior to October 31, 2023, the Debentures may be redeemed in whole or in part from time to time at the Company’s option at a price equal to their principal amount plus accrued and unpaid interest, provided that the volume weighted average trading price of the Common Shares on the NYSE for the 20 consecutive trading days ending on the fifth trading day preceding the date on which the notice of the redemption is given is at least 125% of the Conversion Price. On and after October 31, 2023, the Debentures may be redeemed in whole or in part from time to time at the Company’s option at a price equal to their principal amount plus accrued and unpaid interest regardless of the trading price of the Common Shares. Subject to applicable securities laws and regulatory approval and provided that no event of default has occurred and is continuing, the Company may, at its option, elect to satisfy its obligation to pay the principal amount of the Debentures and accrued and unpaid interest on the redemption date and the maturity date, in whole or in part, through the issuance of Common Shares, by issuing and delivering that number of Common Shares, obtained by dividing the principal amount of the Debentures and all accrued and unpaid interest thereon by 95% of the current market price (as defined in the Debenture Indenture) on such redemption date or maturity date, as applicable. |
OTHER LIABILITIES
OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2022 | |
OTHER LIABILITIES [abstract] | |
OTHER LIABILITIES | 14. OTHER NON-CURRENT LIABILITIES As at Note December 31, 2022 December 31, 2021 Restricted share units 16(b) $ 1,490 $ 1,437 Other non-current liabilities 1,106 1,873 Total other non-current liabilities $ 2,596 $ 3,310 |
CLOSURE AND RECLAMATION PROVISI
CLOSURE AND RECLAMATION PROVISIONS | 12 Months Ended |
Dec. 31, 2022 | |
Closure and Reclamation Provisions [abstract] | |
CLOSURE AND RECLAMATION PROVISIONS | 15. CLOSURE AND RECLAMATION PROVISIONS The following table summarizes the changes in closure and reclamation provisions: Closure and Reclamation Provisions Caylloma Mine San Jose Mine Lindero Mine Yaramoko Mine Séguéla Project Total Balance at December 31, 2021 $ 14,898 $ 7,128 $ 19,639 $ 12,895 $ 1,552 $ 56,112 Changes in estimate (1,235) (493) (8,666) 135 5,238 (5,021) Reclamation expenditures (503) (120) - - - (623) Accretion 796 682 541 345 - 2,364 Effect of changes in foreign exchange rates - 473 - - - 473 Balance at December 31, 2022 13,956 7,670 11,514 13,375 6,790 53,305 Less: Current portion (1,577) (600) - - - (2,177) Non-current portion $ 12,379 $ 7,070 $ 11,514 $ 13,375 $ 6,790 $ 51,128 Closure and Reclamation Provisions Caylloma Mine San Jose Mine Lindero Project Yaramoko Mine Séguéla Project Total Balance at December 31, 2020 $ 14,761 $ 5,905 $ 19,684 $ - $ - $ 40,350 Acquisition of Roxgold - - - 11,122 - 11,122 Changes in estimate (152) 1,142 (422) 1,609 1,552 3,729 Reclamation expenditures (180) (173) - - - (353) Accretion 469 439 377 164 - 1,449 Effect of changes in foreign exchange rates - (185) - - - (185) Balance at December 31, 2021 14,898 7,128 19,639 12,895 1,552 56,112 Less: Current portion (1,230) (652) - - - (1,882) Non-current portion $ 13,668 $ 6,476 $ 19,639 $ 12,895 $ 1,552 $ 54,230 The following table summarizes certain key inputs used in determining the present value of reclamation costs related to mine and development sites: Closure and Reclamation Provisions Caylloma Mine San Jose Mine Lindero Mine Yaramoko Mine Séguéla Project Total Undiscounted uninflated estimated cash flows $ 15,823 $ 8,413 $ 14,138 $ 14,113 $ 7,525 $ 60,012 Discount rate 5.88% 9.35% 4.14% 4.22% 3.88% Inflation rate 2.30% 7.13% 1.96% 3.67% 2.20% The Company is expecting to incur progressive reclamation costs throughout the life of its mines. |
SHARE BASED PAYMENTS
SHARE BASED PAYMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Share Based Payments [abstract] | |
SHARE BASED PAYMENTS | 16. SHARE BASED PAYMENTS During the year ended December 31, 2022, the Company recognized share-based payments of $10.2 million (December 31, 2021 - $3.8 million) related to the amortization of deferred, restricted and performance share units and $0.1 million (December 31, 2021 – $nil ) related to amortization of stock options. (a) Deferred Share Units (DSUs) Cash Settled Number of DSUs Fair Value Outstanding, December 31, 2020 1,124,519 $ 9,239 Granted 55,245 347 Units paid out in cash (374,709) (3,436) Changes in fair value - (3,013) Outstanding, December 31, 2021 805,055 3,137 Granted 117,643 452 Changes in fair value - (121) Outstanding, December 31, 2022 922,698 $ 3,468 (b) Restricted Share Units (RSUs) Cash Settled Equity Settled Number of RSUs Fair Value Number of RSUs Outstanding, December 31, 2020 1,367,490 $ 5,392 1,533,366 Granted 677,250 4,111 - Units paid out in cash (618,357) (2,484) - Assumed on acquisition 328,254 1,590 1,091,395 Vested and paid out in shares - - (655,267) Transferred from equity to cash settled 260,444 - (260,444) Forfeited or cancelled (155,942) (54) (64,589) Changes in fair value and vesting - (3,052) - Outstanding, December 31, 2021 1,859,139 5,503 1,644,461 Granted 1,348,538 5,264 - Units paid out in cash (1,256,288) (5,737) - Vested and paid out in shares - - (665,305) Transferred from equity to cash settled 413,864 - (413,864) Transferred from cash to equity settled (155,674) - 155,674 Forfeited or cancelled (260,870) - (15,111) Changes in fair value and vesting - (1,190) - Outstanding, December 31, 2022 1,948,709 3,840 705,855 Less: current portion (2,350) Non-current portion $ 1,490 (c) Performance Share Units Cash Settled Equity Settled Number of PSUs Fair Value Number of PSUs Outstanding, December 31, 2020 - $ - 839,170 Assumed on acquisition 515,008 2,390 508,688 Granted - - 1,196,012 Forfeited or cancelled - - (206,798) Vested and paid out in shares - - (491,185) Changes in fair value and vesting - 714 - Outstanding, December 31, 2021 515,008 3,104 1,845,887 Granted - - 824,768 Forfeited or cancelled - - (434,007) Units paid out in cash (683,460) (3,882) - Transferred from equity to cash settled 168,452 - (168,452) Vested and paid out in shares - - (228,740) Change in fair value and vesting - 778 - Outstanding, December 31, 2022 - $ - 1,839,456 (d) Stock Options The Company’s Stock Option Plan, as amended and approved from time to time, permits the Company to issue up to 12,200,000 stock options. As at December 31, 2022, a total of 2,441,061 stock options are available for issuance under the plan. Number of stock options Weighted average exercise price Canadian dollars Outstanding, December 31, 2020 1,054,570 $ 6.28 Exercised (68,927) 4.99 Assumed on acquisition 405,240 3.77 Expired unexercised (141,500) 3.22 Outstanding, December 31, 2021 1,249,383 5.88 Expired unexercised (612,565) 6.16 Outstanding, December 31, 2022 636,818 $ 5.62 Vested and exercisable, December 31, 2021 1,249,383 $ 5.88 Vested and exercisable, December 31, 2022 636,818 $ 5.62 |
SHARE CAPITAL
SHARE CAPITAL | 12 Months Ended |
Dec. 31, 2022 | |
Share Capital [abstract] | |
SHARE CAPITAL | 17. SHARE CAPITAL Authorized Share Capital The Company has an unlimited number of common shares without par value authorized for issue. On May 2, 2022, the Company initiated a share repurchase program to purchase up to five percent of its issued and outstanding common shares, expiring on the earlier of May 1, 2023, the date on which Fortuna has acquired the maximum number of common shares allowable under the Normal Course Issuer Bid (“NCIB”) or the date on which Fortuna otherwise decides not to make any further repurchases under the NCIB. From the commencement of the NCIB to December 31, 2022, the Company acquired and cancelled 2,201,404 common shares through this program at an average cost of $2.69 per share for a total cost of $5.9 million. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2022 | |
Earnings per Share [abstract] | |
EARNINGS PER SHARE | 18. EARNINGS PER SHARE Years ended December 31, 2022 2021 Basic: Net (loss) income attributable to Fortuna shareholders $ (128,132) $ 57,877 Weighted average number of shares (000's) 291,281 237,998 (Loss) earnings per share - basic $ (0.44) $ 0.24 Years ended December 31, 2022 2021 Diluted: Net (loss) income attributable to Fortuna shareholders $ (128,132) $ 57,877 Add: finance costs on convertible debt, net of $nil tax - 3,779 Diluted net (loss) income for the period $ (128,132) $ 61,656 Weighted average number of shares (000's) 291,281 237,998 Incremental shares from dilutive potential shares - 11,445 Weighted average diluted number of shares (000's) 291,281 249,443 (Loss) earnings per share - diluted $ (0.44) $ 0.23 For the year ended December 31, 2022, 509,468 out of the money options were excluded from the diluted earnings per share calculation (December 31, 2021 – 7,551 ). For the year ended December 31, 2022, 2,380,857 share units were excluded from the diluted earnings per share calculation (December 31, 2021 – nil ). In addition, for the year ended December 31, 2022, 9,176,000 potential shares issuable on conversion of the debentures were excluded from the diluted earnings per share calculation (December 31, 2021 – nil ). These shares were excluded from the diluted earnings per share calculations as their effect would have been anti-dilutive. |
SALES
SALES | 12 Months Ended |
Dec. 31, 2022 | |
SALES [abstract] | |
SALES | 19. SALES The Company’s geographical analysis of revenue from contracts with customers attributed to the location of the products produced, is as follows: Year ended December 31, 2022 Peru Mexico Argentina Burkina Faso Total Silver-gold concentrates $ - $ 173,871 $ - $ - $ 173,871 Silver-lead concentrates 50,300 - - - 50,300 Zinc concentrates 53,147 - - - 53,147 Gold doré - - 212,092 193,541 405,633 Provisional pricing adjustments (1,116) (344) - - (1,460) Sales to external customers $ 102,331 $ 173,527 $ 212,092 $ 193,541 $ 681,491 Year ended December 31, 2021 Peru Mexico Argentina Burkina Faso Total Silver-gold concentrates $ - $ 219,663 $ - $ - $ 219,663 Silver-lead concentrates 59,755 - - - 59,755 Zinc concentrates 42,990 - - - 42,990 Gold doré - - 178,999 101,256 280,255 Provisional pricing adjustments 799 (3,609) - - (2,810) Sales to external customers $ 103,544 $ 216,054 $ 178,999 $ 101,256 $ 599,853 1 Burkina Faso was acquired as part of the acquisition of Roxgold which completed on July 2, 2021. Comparative figures in 2021 are included from July 2, 2021 onward Years ended December 31, 2022 2021 Customer 1 $ 212,092 $ 178,999 Customer 2 193,541 101,256 Customer 3 102,332 103,544 Customer 4 76,851 28,860 Customer 5 70,584 91,950 Customer 6 26,091 47,212 Customer 7 - 48,032 $ 681,491 $ 599,853 From time to time, the Company mitigates the price risk associated with its base metal production by entering into forward sale and collar contracts for some of its forecasted base metal production and non-metal commodities. During the year ended December 31, 2022, the Company recognized $0.7 million of realized losses on the settlement of forward sale and collar contracts (December 31, 2021 - $1.5 million), and $1.2 million unrealized gains from changes in the fair value of the open positions (December 31, 2021 – $1.3 million unrealized loss). |
COST OF SALES
COST OF SALES | 12 Months Ended |
Dec. 31, 2022 | |
COST OF SALES [abstract] | |
COST OF SALES | 20. COST OF SALES Years ended December 31, 2022 2021 Direct mining costs $ 272,329 $ 198,141 Salaries and benefits 44,432 34,773 Workers' participation 4,285 7,647 Depletion and depreciation 171,447 121,077 Royalties and other taxes 33,304 25,703 Inventory net realizable value adjustments 8,898 7,035 Cost of Sales $ 534,695 $ 394,376 For the year ended December 31, 2022, depletion and depreciation includes $9.0 million of depreciation related to right-of-use assets (December 31, 2021 - $6.3 million). |
GENERAL AND ADMINISTRATION
GENERAL AND ADMINISTRATION | 12 Months Ended |
Dec. 31, 2022 | |
GENERAL AND ADMINISTRATION [abstract] | |
GENERAL AND ADMINISTRATION | 21. GENERAL AND ADMINISTRATION Years ended December 31, 2022 2021 General and administration $ 50,191 $ 39,386 Workers' participation 954 1,813 51,145 41,199 Share-based payments 10,311 4,161 General and Administration $ 61,456 $ 45,360 |
INTEREST AND FINANCE COSTS, NET
INTEREST AND FINANCE COSTS, NET | 12 Months Ended |
Dec. 31, 2022 | |
INTEREST AND FINANCE COSTS, NET [Abstract] | |
INTEREST AND FINANCE COSTS, NET | 22. INTEREST AND FINANCE COSTS, NET Years ended December 31, 2022 2021 Interest income $ 1,851 $ 1,846 Interest expense (8,885) (10,246) Bank stand-by and commitment fees (193) (69) Accretion expense (2,364) (1,451) Lease Liabilities (2,466) (2,348) Loss on extinguishment of credit facility - (595) $ (12,057) $ (12,863) |
INCOME TAX
INCOME TAX | 12 Months Ended |
Dec. 31, 2022 | |
INCOME TAX [abstract] | |
INCOME TAX | 23. INCOME TAX (a) Reconciliation of Effective Tax Rate Income tax expense differs from the amount that would be computed by applying the applicable Canadian statutory income tax rate to income before income taxes. The significant reasons for the differences are as follows: Years ended December 31, 2022 2021 Net (loss) income before tax $ (125,109) $ 107,180 Statutory tax rate 27.0% 27.0% Anticipated income tax at statutory rates (33,779) 28,939 Non-deductible expenditures (deductible expenditures) (3,513) (5,535) Differences between Canadian and foreign tax rates 10,448 4,392 Changes in estimate (4,492) (93) Effect of change in tax rates — (1,919) Inflation adjustment (57,403) (24,873) Impact of foreign exchange 17,336 14,865 Change in deferred tax assets not recognized 70,178 18,692 Mining taxes 5,629 7,636 Withholding taxes 7,720 8,148 Other items (1,327) (2,471) Total income tax expense $ 10,797 $ 47,781 Total income tax represented by: Current income tax expense $ 35,783 $ 51,651 Deferred tax recovery (24,986) (3,870) $ 10,797 $ 47,781 (b) Tax Amounts Recognized in Profit or Loss Years ended December 31, 2022 2021 Current tax expense Current taxes on profit for the year $ 35,884 $ 51,106 Changes in estimates related to prior years (101) 545 $ 35,783 $ 51,651 Deferred tax expense Origination and reversal of temporary differences and foreign exchange rate $ (20,826) $ (985) Changes in estimates related to prior years (4,392) (638) Effect of differences in tax rates 232 (328) Effect of changes in tax rates — (1,919) $ (24,986) $ (3,870) Total tax expense $ 10,797 $ 47,781 (c) Deferred Tax Balances The significant components of the recognized deferred tax assets and liabilities are: December 31, December 31, 2022 2021 Deferred tax assets: Reclamation and closure cost obligation $ 14,942 $ 15,872 Carried forward tax loss 3,552 4,192 Equipment and buildings 11,976 23,989 Accounts payable and accrued liabilities 13,286 19,370 Deductibility of resource taxes 2,406 3,085 Lease obligations 8,374 8,270 Other 86 1,153 Total deferred tax assets $ 54,622 $ 75,931 Deferred tax liabilities: Mineral properties $ (202,087) $ (244,296) Mining and foreign withholding taxes (3,524) (4,523) Convertible debenture (831) (1,198) Inflation (4,306) (10,163) Inventory and other (11,493) (7,419) Total deferred tax liabilities $ (222,241) $ (267,599) Net deferred tax liabilities $ (167,619) $ (191,668) 2022 2022 Classification: Deferred tax assets $ - $ - Deferred tax liabilities (167,619) (191,668) Net deferred tax liabilities $ (167,619) $ (191,668) The Company's movement of net deferred tax liabilities is described below: 2022 2021 At January 1 $ 191,668 $ 19,499 Deferred income tax (recovery) expense through income statement (24,831) (3,870) Deferred income tax expense through equity 782 176,039 At December 31 $ 167,619 $ 191,668 (d) Unrecognized Deferred Tax Assets and Liabilities The Company recognizes tax benefits on losses or other deductible amounts where it is more likely than not that the deferred tax asset will be realized. The Company’s unrecognized deductible temporary differences and unused tax losses for which no deferred tax asset is recognized consists of the following amounts: December 31, December 31, 2022 2021 Unrecognized deductible temporary differences and unused tax losses: Non-capital losses $ 164,427 $ 136,072 Provisions 7,215 11,657 Share issue costs 306 1,711 Mineral properties, plant and equipment 184,970 12,705 Lease obligation 578 863 Derivative liabilities 335 - Capital losses — 4,204 Investments in equity securities and associates 1,070 901 Unrecognized deductible temporary differences $ 358,901 $ 168,114 As at December 31, 2022, the Company has temporary differences associated with investments in subsidiaries for which an income tax liability has not been recognized as the Company can control the timing of the reversal of the temporary differences and the Company plans to reinvest in its foreign subsidiaries. The temporary difference associated with investments in subsidiaries aggregate as follow: December 31, December 31, 2022 2021 Mexico $ 150,379 $ 204,283 Peru 78,505 59,976 West Africa 18,122 114,559 (e) Tax Loss Carry Forwards Tax losses have the following expiry dates: December 31, December 31, Year of expiry 2022 Year of expiry 2021 Canada 2026 - 2042 $ 184,717 2026 - 2041 $ 150,015 Mexico 2021 - 2031 20 2021 - 2030 378 In addition, as at December 31, 2022, the Company has accumulated Canadian resource related expenses of $8.0 million (December 31, 2021- $8.5 million) for which the deferred tax benefit has not been recognized |
SEGMENTED INFORMATION
SEGMENTED INFORMATION | 12 Months Ended |
Dec. 31, 2022 | |
SEGMENTED INFORMATION [abstract] | |
SEGMENTED INFORMATION | 24. SEGMENTED INFORMATION The following summary describes the operations of each reportable segment: ● Mansfield Minera S.A. (“Mansfield”) – operates the Lindero gold mine ● Roxgold SANU S.A. (“Sanu”) – operates the Yaramoko gold mine ● Roxgold SANGO S.A. (“Sango”) – construction of the Séguéla mine ● Compania Minera Cuzcatlan S.A. de C.V. (“Cuzcatlan”) – operates the San Jose silver-gold mine ● Minera Bateas S.A.C. (“Bateas”) – operates the Caylloma silver, lead and zinc mine ● Corporate – corporate stewardship Year ended December 31, 2022 Mansfield Sanu Sango Cuzcatlan Bateas Corporate Total Revenues from external customers $ 212,092 $ 193,541 $ - $ 173,527 $ 102,331 $ - $ 681,491 Cost of sales before depreciation and depletion (111,625) (106,953) - (91,312) (53,358) - (363,248) Depreciation and depletion in cost of sales (54,644) (64,893) - (37,776) (14,134) - (171,447) General and administration (8,698) (2,101) (366) (8,150) (4,478) (37,663) (61,456) Impairment of mineral properties, plant and equipment (70,156) (103,457) - (9,229) - - (182,842) Other (expenses) income (3,239) 2,570 (1,175) (5,026) (208) (8,972) (16,050) Finance items (1,695) (760) (360) (660) (1,167) (6,915) (11,557) Segment income (loss) before taxes (37,965) (82,053) (1,901) 21,374 28,986 (53,550) (125,109) Income taxes (3,529) 13,056 405 (4,855) (8,915) (6,959) (10,797) Segment income (loss) after taxes $ (41,494) $ (68,997) $ (1,496) $ 16,519 $ 20,071 $ (60,509) $ (135,906) Year ended December 31, 2021 Mansfield Sanu Sango Cuzcatlan Bateas Corporate Total Revenues from external customers $ 178,999 $ 101,256 $ - $ 216,054 $ 103,544 $ - $ 599,853 Cost of sales before depreciation and depletion (79,224) (51,839) - (90,499) (51,737) - (273,299) Depreciation and depletion in cost of sales (43,665) (28,973) - (32,257) (16,182) - (121,077) General and administration (5,793) (953) - (10,007) (4,127) (24,480) (45,360) Other (expenses) income (5,069) (2,536) (472) (15,793) 632 - (23,238) Finance items (972) (2,664) (96) (882) (5,034) (20,051) (29,699) Segment income (loss) before taxes 44,276 14,291 (568) 66,616 27,096 (44,531) 107,180 Income taxes (3,242) (2,749) (499) (23,586) (9,415) (8,290) (47,781) Segment income (loss) after taxes $ 41,034 $ 11,542 $ (1,067) $ 43,030 $ 17,681 $ (52,821) $ 59,399 As at December 31, 2022 Mansfield Sanu Sango Cuzcatlan Bateas Corporate Total Total assets $ 499,937 $ 182,621 $ 833,179 $ 187,898 $ 142,385 $ 30,204 $ 1,876,224 Total liabilities $ 44,152 $ 47,122 $ 173,082 $ 30,381 $ 49,143 $ 243,648 $ 587,528 Capital expenditures 1 $ 23,048 $ 54,137 $ 118,644 $ 24,397 $ 19,610 $ 2,047 $ 241,884 1 Capital expenditures are on an accrual basis for the year ended December 31, 2022 As at December 31, 2021 Mansfield Sanu Sango Cuzcatlan Bateas Corporate Total Total assets $ 613,584 $ 249,153 $ 760,220 $ 239,448 $ 128,012 $ 31,505 $ 2,021,922 Total liabilities $ 51,544 $ 67,229 $ 186,981 $ 48,094 $ 54,863 $ 183,641 $ 592,352 Capital expenditures 1 $ 40,845 $ 22,856 $ 56,614 $ 26,962 $ 24,848 $ - $ 172,125 1 Capital expenditures are on an accrual basis for the year ended December 31, 2021 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2022 | |
FAIR VALUE MEASUREMENTS [abstract] | |
FAIR VALUE MEASUREMENTS | 25. FAIR VALUE MEASUREMENTS Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or most advantageous) market at the measurement date under current market conditions (an exit price) regardless of whether that price is directly observable or estimated using another valuation technique. The fair value hierarchy establishes three levels to classify the inputs to valuation techniques used to measure fair value. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices in markets that are not active, quoted prices for similar assets or liabilities in active markets, inputs other than quoted prices that are observable for the asset or liability (interest rate, yield curves), or inputs that are derived principally from or corroborated observable market data or other means. Level 3 inputs are unobservable (supported by little or no market activity). The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. The following sets up the methods and assumptions used to estimate the fair value of financial instruments. Financial asset or liability Methods and assumptions used to estimate fair value Trade receivables Trade receivables arising from the sales of metal concentrates are subject to provisional pricing, and the final selling price is adjusted at the end of a quotational period. These are marked to market at each reporting date based on the forward price corresponding to the expected settlement date. Investments in equity securities Investments in equity securities are recorded at fair value based on the quoted market price at the end of each reporting period with changes in fair value through other comprehensive income. Interest rate swap, metal, fuel and foreign exchange contracts Fair value is calculated as the present value of the estimated contractual cash flows. Estimates of future cash flows are based on quoted swap rates, futures prices and interbank borrowing rates. These are discounted using a yield curve, and adjusted for credit risk of the Company or the counterparty. Convertible Debentures The fair value of the convertible debentures represents both the debt and equity components of the convertible debentures and has been determined with reference to the quoted market price of the convertible debentures. During the years ended December 31, 2022, and 2021, there were no transfers of amounts between Level 1, Level 2, and Level 3 of the fair value hierarchy. The following tables show the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. Fair value information for financial assets and financial liabilities not measured at fair value is not presented if the carrying amount is a reasonable approximation of fair value. Carrying value Fair value December 31, 2022 Fair Value through OCI Fair value through profit or loss Amortized cost Total Level 1 Level 2 Level 3 Carrying value approximates Fair Value Financial assets measured at Fair Value Investments in equity securities $ 78 $ - $ - $ 78 $ 78 $ - $ - $ - Trade receivables concentrate sales - 21,455 - 21,455 - 21,455 - - Metal forward sales contracts asset 18 18 18 - $ 78 $ 21,473 $ - $ 21,551 $ 78 $ 21,473 $ - $ - Financial assets not measured at Fair Value Cash and cash equivalents $ - $ - $ 80,493 $ 80,493 $ - $ - $ - $ 80,493 Trade receivables doré sales - - 2,522 2,522 - - - 2,522 Other receivables - - 7,443 7,443 - - - 7,443 $ - $ - $ 90,458 $ 90,458 $ - $ - $ - $ 90,458 Financial liabilities measured at Fair Value Foreign exchange forward contracts liability - (270) - (270) - (270) - - $ - $ (270) $ - $ (270) $ - $ (270) $ - $ - Financial liabilities not measured at Fair Value Trade payables $ - $ - $ (72,571) $ (72,571) $ - $ - $ - $ (72,571) Payroll payable - - (22,967) (22,967) - - - (22,967) Credit facilities - - (177,020) (177,020) - (180,000) - - Convertible debentures - - (42,155) (42,155) - (46,138) - - Other payables - - (31,519) (31,519) - - - (31,519) $ - $ - $ (346,232) $ (346,232) $ - $ (226,138) $ - $ (127,057) Carrying value Fair value December 31, 2021 Fair Value through OCI Fair value through profit or loss Amortized cost Total Level 1 Level 2 Level 3 Carrying value approximates Fair Value Financial assets measured at Fair Value Investments in equity securities $ 496 $ - $ - $ 496 $ 496 $ - $ - $ - Trade receivables concentrate sales - 23,298 - 23,298 - 23,298 - - Fuel hedge contracts asset - 1,619 - 1,619 - 1,619 - - $ 496 $ 24,917 $ - $ 25,413 $ 496 $ 24,917 $ - $ - Financial assets not measured at Fair Value Cash and cash equivalents $ - $ - $ 107,097 $ 107,097 $ - $ - $ - $ 107,097 Trade receivables doré sales - - 2,420 2,420 - - - 2,420 Other receivables - - 4,424 4,424 - - - 4,424 $ - $ - $ 113,941 $ 113,941 $ - $ - $ - $ 113,941 Financial liabilities measured at Fair Value Interest rate swap liability $ (78) $ - $ - $ (78) $ - $ (78) $ - $ - Metal forward sales contracts liability - (2,547) - (2,547) - (2,547) - - Fuel forward contracts liability - (508) - (508) - (508) - - $ (78) $ (3,055) $ - $ (3,133) $ - $ (3,133) $ - $ - Financial liabilities not measured at Fair Value Trade payables $ - $ - $ (80,925) $ (80,925) $ - $ - $ - $ (80,925) Payroll payable - - (23,311) (23,311) - - - (23,311) Credit facilities - - (117,082) (117,082) - (120,000) - - Convertible debentures - - (40,407) (40,407) - (50,614) - - Other payables - - (44,427) (44,427) - - - (44,427) $ - $ - $ (306,152) $ (306,152) $ - $ (170,614) $ - $ (148,663) |
MANAGEMENT OF FINANCIAL RISK
MANAGEMENT OF FINANCIAL RISK | 12 Months Ended |
Dec. 31, 2022 | |
MANAGEMENT OF FINANCIAL RISK [abstract] | |
MANAGEMENT OF FINANCIAL RISK | 26. MANAGEMENT OF FINANCIAL RISK The Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management framework and reviews the Company’s policies on an ongoing basis. The Company is exposed to certain financial risks, including credit risk, liquidity risk, currency risk, metal price risk, and interest rate risk. (a) Credit Risk Credit risk is the risk of an unexpected loss if a customer or third party to a financial instrument fails to meet its contractual obligations. All our trade accounts receivables from concentrate sales are held with large international metals trading companies. The Company’s cash and cash equivalents and short-term investments are held through large financial institutions. These investments mature at various dates within three months. The Company’s maximum exposure to credit risk as at December 31, 2022 and 2021 is as follows: As at December 31, 2022 December 31, 2021 Cash and cash equivalents $ 80,493 $ 107,097 Derivative assets 19 1,490 Trade and other receivables 68,165 76,487 Income tax receivable 718 1,713 Other non-current receivables 8,484 6,032 $ 157,879 $ 192,819 The carrying amount of financial assets recorded in the financial statements represents the Company’s maximum exposure to credit risk. We limit our exposure to counterparty credit risk on cash and term deposits by only dealing with financial institutions with high credit ratings and through our investment policy of purchasing only instruments with a high credit rating. Almost all of our concentrates are sold to large well-known concentrate buyers. (b) Liquidity Risk Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they come due. The Company manages its liquidity risk by continually monitoring forecasted and actual cash flows. The Company has in place a planning and budgeting process to help determine the funds required to support its normal operating requirements and its development plans. The Company aims to maintain sufficient liquidity to meet its short term business requirements, taking into account its anticipated cash flows from operations, its holdings of cash and cash equivalents, and its committed and anticipated liabilities. The Company had $150.5 million of liquidity comprised of cash and cash equivalents and undrawn credit facilities as at December 31, 2022. The Company believes that it has sufficient liquidity to meet the Company’s minimum obligations for at least the next 12 months from December 31, 2022. The Company manages its liquidity risk by continuously monitoring forecasted and actual cashflows. A rigorous reporting, planning and budgeting process are in place to help facilitate forecasting funding requirements, to support operations on an ongoing basis and expansion plans, if any. As at December 31, 2022, the Company expects the following maturities of its financial liabilities, lease obligations, and other contractual commitments, excluding payments relating to interest: Expected payments due by year as at December 31, 2022 Less than After 1 year 1 - 3 years 4 - 5 years 5 years Total Trade and other payables $ 111,896 $ - $ - $ - $ 111,896 Debt - 225,940 - - 225,940 Income taxes payable 11,589 - - - 11,589 Lease obligations 11,343 8,308 5,736 5,806 31,193 Other liabilities - 2,596 - - 2,596 Capital commitments, Séguéla 13,923 380 - - 14,303 Closure and reclamation provisions 3,227 24,635 9,110 23,040 60,012 $ 151,978 $ 261,859 $ 14,846 $ 28,846 $ 457,529 Expected payments due by year as at December 31, 2021 Less than After 1 year 1 - 3 years 4 - 5 years 5 years Total Trade and other payables $ 133,805 $ - $ - $ - $ 133,805 Debt - 46,000 120,000 - 166,000 Income taxes payable 20,563 - - - 20,563 Lease obligations 12,292 11,315 2,065 15,983 41,655 Other liabilities - 3,310 - - 3,310 Capital commitments, Séguéla 66,542 5,217 - - 71,759 Closure and reclamation provisions 1,883 5,561 23,954 24,714 56,112 $ 235,085 $ 71,403 $ 146,019 $ 40,697 $ 493,204 (c) Currency risk The Company is exposed to fluctuations in foreign exchange rates as a portion of our expenses are incurred in Canadian dollars, Peruvian soles, Argentine peso, Mexican peso, West Africa CFA Franc and Australian dollars. A significant change in the foreign exchange rates between the United States dollar relative to the other currencies could have a material effect on the Company’s profit or loss, financial position, or cash flows. As at December 31, 2022 and 2021, the Company was exposed to currency risk through the following assets and liabilities denominated in foreign currencies: December 31, 2022 Canadian Dollars Peruvian Soles Mexican Pesos Argentine Pesos West African CFA Franc Australian Dollars Euro Cash and cash equivalents 587 6,237 73,868 11,845 6,057,885 250 0 Marketable securities 105 - - - - - - Restricted cash - - - - 2,338,983 - - Trade and VAT receivables 215 3,317 73,868 2,062,918 12,979,116 (115) - Income tax receivable - 28,137 13,900 - - - - VAT - long term receivable - - 70,520 - - - - Trade and other payables (13,374) (16,966) (218,288) (1,429,416) (15,346,471) (1,285) (274) Provisions, current - (8,123) (11,729) (387,883) - - - Income tax payable 51 - (84,393) - (1,353,215) - - Other liabilities (177) - (9,708) - - - - Provisions, non-current - (12,611) (90,797) - - - - Total foreign currency exposure (12,592) (9) (182,759) 257,464 4,676,296 (1,151) (274) US$ equivalent of foreign currency exposure (9,297) (2) (9,439) 1,436 7,416 (1,099) (262) December 31, 2021 Canadian Dollars Peruvian Soles Mexican Pesos Argentine Pesos West African CFA Franc Australian Dollars Euro Cash and cash equivalents 1,660 5,508 18,126 4,319 11,494,909 5 28 Marketable securities 527 - - - - - - Restricted cash - - - - 1,166,963 - - Trade and VAT receivables 690 2,144 174,229 1,526,506 13,433,368 - - Income tax receivable - 20,707 - - - - - VAT - long term receivable - - 70,520 - - - - Trade and other payables (3,839) (17,496) (400,697) (1,174,033) (10,094,158) (939) (1,431) Provisions, current - (4,413) (13,534) (95,353) - - - Income tax payable - - (87,881) - - - - Other liabilities - - (6,178) - - - - Provisions, non-current - - (87,305) - - - - Total foreign currency exposure (962) 6,450 (332,719) 261,439 16,001,083 (933) (1,403) US$ equivalent of foreign currency exposure (755) 1,668 (16,802) 2,734 28,548 (671) (1,207) Sensitivity as to change in foreign currency exchange rates on our foreign currency exposure as at December 31, 2022 is provided below: Effect on foreign denominated Currency Change items Mexican pesos +/- 10% $ 858 Peruvian soles +/- 10% $ 0 Argentinian pesos +/- 10% $ 131 Canadian Dollar +/- 10% $ 845 West African CFA franc +/- 10% $ 674 Australian Dollar +/- 10% $ 152 Euro +/- 10% $ 24 Due to the volatility of the exchange rate for Argentine Peso, the Company is applying additional measures in cash management to minimize potential losses arising from the conversion of funds. As discussed in note 26(f), with the capital controls in effect, the Company is required to convert the equivalent value of foreign currency received from the proceeds of the sale of all gold doré from the Lindero Mine. (d) Metal Price Risk The Company is exposed to metal price risk with respect to the sales of silver, gold, lead, and zinc concentrates. The following table summarizes the effect on provisionally priced sales and accounts receivables of a 10% change in metal prices from the prices used at December 31, 2022: Metal Change Effect on Sales Silver +/- 10% $ 800 Gold +/- 10% $ 363 Lead +/- 10% $ 550 Zinc +/- 10% $ 186 During the year ended December 31, 2022, the Company recognized negative sales adjustments of $1.5 million (December 31, 2021 – negative $2.8 million) as a result of changes in metal prices on the final settlement or during the quotational period. From time to time, the Company mitigates the price risk associated with its base metal production by entering into forward sale and collar contracts for some of its forecasted base metal production and non-metal commodities (see Note 19). (e) Interest Rate Risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Currently, the Company’s interest rate exposure mainly relates to interest earned on its cash, cash equivalent, and short-term investment balances, interest paid on its LIBOR-based debt, interest paid on its SOFR-based debt and the mark-to-market value of derivative instruments which depend on interest rates. (f) Capital Management The Company’s objective when managing its capital is to maintain its ability to continue as a going concern while at the same time maximizing the growth of its business and providing returns to its shareholders. The Company manages its capital structure and makes adjustments based on changes to its economic environment and the risk characteristics of the Company’s assets. Effective December 23, 2019, changes to Argentina’s tax laws proposed by the new Argentine Government were implemented. The changes ratified and extended legislation which was to expire on December 31, 2019 and allow the Argentine Central Bank to regulate funds coming into and flowing out of Argentina in order to maintain stability and support the economic recovery of the country. These capital controls, together with additional temporary controls enacted on May 29, 2020, have the effect of requiring exporters to convert the equivalent value of foreign currency received from the export into Argentine Pesos; requiring the prior consent of the Argentine Central Bank to the payment of cash dividends and distributions of currency out of Argentina; requiring Argentine companies to convert foreign currency loans received from abroad into Argentine Pesos; and restricting the sale of Argentine Pesos for foreign currency. The Company’s capital requirement is effectively managed based on the Company having a thorough reporting, planning and forecasting process to help identify the funds required to ensure the Company is able to meet its operating and growth objectives. The Company’s capital structure consists of equity comprising of share capital, reserves and retained earnings as well as debt facilities, equipment financing obligations less cash, cash equivalents and short-term investments. December 31, 2022 December 31, 2021 Equity $ 1,244,756 $ 1,375,148 Debt 219,175 157,489 Lease obligations 21,346 29,405 Less: cash and cash equivalents (80,493) (107,097) $ 1,404,784 $ 1,454,945 As discussed above, the Company operates in Argentina where the new Argentine government has ratified and extended legislation to December 31, 2025 to allow the Argentine Central Bank to regulate funds coming into and flowing out of Argentina. Other than the restrictions related to these capital controls and complying with the debt covenants under the Company’s credit facility, the Company is not subject to any externally imposed capital requirements. As at December 31, 2022 and 2021, the Company was in compliance with its debt covenants. |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 12 Months Ended |
Dec. 31, 2022 | |
Supplemental Cashflow Information [abstract] | |
Supplemental Cashflow Information | 27. SUPPLEMENTAL CASH FLOW INFORMATION Changes in working capital for the years ended December 31, 2022 and 2021 are as follows: Years ended December 31, 2022 2021 Trade and other receivables $ 7,315 $ (16,897) Prepaid expenses (1,643) (2,149) Inventories (20,415) (23,824) Trade and other payables (3,278) 3,556 Total changes in working capital $ (18,021) $ (39,314) The changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes for the years as set out below are as follows: Bank loan Convertible debentures Lease obligations As at December 31, 2020 $ 119,850 $ 38,766 $ 19,497 Additions - - 7,397 Terminations - - (1,203) Acquisition of Roxgold 31,711 - 13,597 Interest 845 1,641 2,336 Payments (32,288) - (11,928) Transaction costs (3,036) - - Foreign exchange - - (291) As at December 31, 2021 117,082 40,407 29,405 Loss on debt modifications - - (729) Additions 80,000 - 2,774 Terminations - - (661) Conversion of debenture - (60) - Interest 626 1,808 2,623 Payments (20,000) - (12,209) Transaction costs (688) - - Foreign exchange - - 143 As at December 31, 2022 $ 177,020 $ 42,155 $ 21,346 The significant non-cash financing and investing transactions during the years ended December 31, 2022 and 2021 are as follows: Years ended December 31, 2022 2021 Acquisition of Roxgold $ - $ 594,666 Mineral properties, plant and equipment changes in closure and reclamation provision $ 5,021 $ (3,729) Stock options allocated to share capital upon exercise $ - $ 136 Additions to right of use assets $ (2,774) $ (2,551) Share units allocated to share capital upon settlement $ 2,525 $ 4,468 |
NON-CONTROLLING INTEREST
NON-CONTROLLING INTEREST | 12 Months Ended |
Dec. 31, 2022 | |
Ifrs Non-Controlling Interest [Abstract] | |
NON-CONTROLLING INTEREST | 28. NON-CONTROLLING INTEREST As at December 31, 2022, the non-controlling interest (“NCI”) of the Government of Burkina Faso, which represents a 10% interest in Roxgold SANU S.A. totaled $2.3 million. The loss attributable to the NCI for the year ended December 31, 2022, totaling $7.1 million is based on the net loss for Yaramoko. As at December 31, 2022, the NCI of the Government of Côte d’Ivoire, which represents a 10% interest in Roxgold Sango S.A. totaled $41.6 million. The loss attributable to the NCI for the year ended December 31, 2022, totaling $0.7 million is based on the net loss for Séguéla. Summarized statement of financial position As of December 31, 2022 Yaramoko Séguéla Non-controlling interest percentage 10% 10% Current assets $ 54,953 $ 6,536 Non-current assets 110,617 230,570 Current liabilities (23,338) (13,629) Non-current liabilities (99,921) (254,158) Net assets $ 42,311 $ (30,681) Non-controlling interest $ 2,309 $ 41,631 Summarized income statement For the period ended December 31, 2022 Yaramoko Séguéla Revenue $ 193,541 $ - Net income (loss) and comprehensive income (loss) $ 40,614 $ 6,964 Summarized cash flows For the period ended December 31, 2022 Yaramoko Séguéla Cash flows provided by operating activities $ 83,124 $ (710) Cash flows used in investing activities $ (53,449) $ (124,737) Cash flows (used in) provided by financing activities $ (32,309) $ 121,521 |
CONTINGENCIES AND CAPITAL COMMI
CONTINGENCIES AND CAPITAL COMMITMENTS | 12 Months Ended |
Dec. 31, 2022 | |
CONTINGENCIES AND CAPITAL COMMITMENTS [abstract] | |
CONTINGENCIES AND CAPITAL COMMITMENTS | 29. CONTINGENCIES AND CAPITAL COMMITMENTS (a) Caylloma Letter of Guarantee The Caylloma Mine closure plan, as amended, that was in effect in January 2021, included total undiscounted closure costs of $18.2 million, which consisted of progressive closure activities of $6.2 million, final closure activities of $9.8 million, and post closure activities of $2.3 million pursuant to the terms of the Mine Closing Law. Under the terms of the current Mine Closing Law, the Company is required to provide the Peruvian Government with a guarantee in respect of the Caylloma mine closure plan as it relates to final closure activities and post-closure activities and related taxes. In 2022, the Company provided a bank letter of guarantee of $10.8 million to the Peruvian Government in respect of such closure costs and taxes. (b) San Jose Letter of Guarantee The Company has established three letters of guarantee in the aggregate amount of $0.9 million to fulfill its environmental obligations under the terms and conditions of the Environmental Impact Statements issued by the Secretaria de Medio Ambiente y Recursos Naturales (“SEMARNAT”) in 2009 in respect of the construction of the San Jose mine, and in 2017 and 2020 with respect to the expansion of the dry stack tailings facility at the San Jose mine. The letters of guarantee expire on December 31, 2023, March 5, 2024, and September 17, 2023, respectively. (c) Other Commitments As at December 31, 2022, the Company had capital commitments of $6.5 million, $1.8 million and $0.1 million for civil work, equipment purchases and other services at the Lindero, Caylloma and San Jose Mines, respectively, which are expected to be expended within one year. Burkina Faso The Company entered into an agreement with a service provider at the Yaramoko Mine wherein if the Company terminates the agreement prior to the end of its term, in December 2023, the Company would be required to make an early termination payment, which is reduced monthly over 30 months, and in certain circumstances, could be required to make other payments that will be negotiated between the Company and the service provider. If the Company had terminated the agreement at December 31, 2022 it would have been subject to an early termination payment of $2.0 million. Côte d’Ivoire As of December 31, 2022, the Company had capital commitments of $14.3 million for the construction of the Séguéla Mine, with $13.9 million expected to be expended within one year. The Company entered into an agreement with a service provider at the Séguéla Mine wherein if the Company terminates the agreement prior to the end of its term, in November 2026, the Company would be required to make an early termination payment, which is reduced monthly over 48 months. If the Company had terminated the agreement on December 31, 2022, and elected not to purchase the service provider’s equipment, it would have been subject to an early termination payment of $19.7 million. If the Company had terminated the agreement on December 31, 2022, and elected to purchase the service provider’s equipment, the early termination amount would be adjusted to exclude equipment depreciation and demobilization of equipment, and only include portion of the monthly management fee and demobilization of personnel. (d) Tax Contingencies The Company is, from time to time, involved in various tax assessments arising in the ordinary course of business. The Company cannot reasonably predict the likelihood or outcome of these actions. The Company has recognized tax provisions with respect to current assessments received from the tax authorities in the various jurisdictions in which the Company operates, and from any uncertain tax positions identified. For those amounts recognized related to current tax assessments received, the provision is based on management's best estimate of the outcome of those assessments, based on the validity of the issues in the assessment, management's support for their position, and the expectation with respect to any negotiations to settle the assessment. Management re-evaluates the outstanding tax assessments regularly to update their estimates related to the outcome for those assessments taking into account the criteria above. Peru The Company was assessed $1.1 million ( 4.3 million Peruvian soles), including interest and penalties of $0.6 million ( 2.4 million Peruvian soles), for the 2010 tax year by SUNAT, the Peruvian tax authority, with respect to the deduction of certain losses arising from derivative instruments. The Company has applied to the Peruvian tax court to appeal the assessment. On January 22, 2019, the Peruvian tax court reaffirmed SUNAT’s position and denied the deduction. The Company believes the assessment is inconsistent with Peruvian tax law and that it is probable the Company will succeed on appeal through the Peruvian legal system. The Company has paid the disputed amount in full and has initiated proceedings through the Peruvian legal system to appeal the decision of the Peruvian tax court. As at December 31, 2022, the Company has recorded the amount paid of $1.1 million ( 4.3 million Peruvian soles) in other long-term assets, as the Company believes it is probable that the appeal will be successful (Note 9). Argentina On August 16, 2022, the Argentine Tax Authority (“AFIP”) published General Resolution No.5248/2022 (the “Resolution”) which established a one-time “windfall income tax prepayment” for companies that have obtained extraordinary income derived from the general increase in international prices. The Resolution was published by AFIP without prior notice. The windfall income tax prepayment applies to companies that meet certain income tax or net income tax (before the deduction of accumulated tax losses) thresholds for 2021 or 2022. The aggregate amount of the windfall income tax prepayment payable by Mansfield calculated in accordance with the Resolution is approximately $5.5 to $6.0 million. The windfall income tax prepayment was to be paid in three equal and consecutive monthly instalments, starting on October 22, 2022, and is payable in addition to income tax instalments currently being paid by corporate taxpayers on account of their income tax obligations. The windfall income tax prepayment is an advance payment of income taxes due to be paid in 2022. Based on the historical accumulated losses of Mansfield for fiscal 2021 which can be carried forward for 2022, Mansfield was not liable for income tax, and based upon current corporate income tax laws and the ability of the Company to deduct historical accumulated losses, it was projected that income tax would not be required to be paid for fiscal 2022. To protect Mansfield’s position from having to pay the windfall income tax prepayment as an advance income tax for 2022, which based on management’s projections is not payable, Mansfield applied to the Federal Court of Salta Province for a preliminary injunction to prevent the AFIP from issuing a demand or other similar measure for the collection of the Windfall Income Tax Prepayment. On October 3, 2022, Mansfield was notified that the Court had granted the preliminary injunction. As a result, Mansfield did not pay any of the three instalments due in 2022. Mansfield also filed an administrative claim with the AFIP to challenge the constitutionality of the Resolution, which was rejected by AFIP on November 2, 2022. Mansfield has challenged the rejection of its administrative claim, by filing legal proceedings against the AFIP with the Federal Court. On February 15, 2023, the Federal Court granted Mansfield a preliminary injunction in these legal proceedings. (e) Other Contingencies The Company is subject to various investigations and other claims, legal, labor, and tax proceedings covering matters that arise in the ordinary course of business activities. Each of these matters is subject to various uncertainties, and it is possible that some of these matters may be resolved unfavorably for the Company. Certain conditions may exist as of the date these financial statements are issued that may result in a loss to the Company. None of these matters is expected to have a material effect on the results of operations or financial conditions of the Company. |
IMPAIRMENT
IMPAIRMENT | 12 Months Ended |
Dec. 31, 2022 | |
IMPAIRMENT [abstract] | |
IMPAIRMENT | 30. IMPAIRMENT The Company’s impairment loss in respect of the following CGUs for the year ended December 31, 2022 are summarized in the following table: Cash Generating Unit Carrying Value Recoverable Amount Impairment Expense Yaramoko $ 199,652 $ 96,195 $ 103,457 Lindero $ 525,336 $ 455,180 $ 70,156 San Jose $ 128,349 $ 119,121 $ 9,229 Total Impairment Expense $ 182,842 Impairment Testing In accordance with the Company’s accounting policies each CGU is assessed for indicators of impairment from both internal and external sources at the end of each reporting period. If such indicators of impairment exist for any CGU, those CGUs are tested for impairment. Based on this assessment, the Company determined that the Yaramoko, Lindero and San Jose CGUs had indicators of impairment. The recoverable amounts of the CGUS are based on the discounted cash flows expected to be derived from the Company’s mining properties and represent each CGU’s Fair Value Less Cost of Disposal (FVLCD), a Level 3 fair value estimate. CGU specific assumptions used to evaluate the recoverable amount were as follows: Yaramoko During 2022 the Company completed additional exploration drilling programs and studies to re-evaluate modelling and estimation techniques to improve the definition of the mineralization and better understand the proposed open pit mining operation at the 55 Zone as disclosed by Roxgold on November 10, 2020 as well as the continued testing of targets at depth in the 55 Zone underground. Results from the additional drilling and evaluation studies were used to update the deposit model which, when taking into account production related depletion, resulted in a 43% decrease in gold ounces in the proven and probable mineral reserves. In 2022, Yaramoko also realized increased operating and capital costs due to inflation. These factors were integrated into an updated life of mine assessment during the fourth quarter of 2022 and the Company concluded that the recoverable value and exploration potential of the Yaramoko property had declined and that the asset was impaired. As a result, the Company recorded an impairment expense of $103.5 million in respect of its mining interests at the Yaramoko CGU. Lindero In the fourth quarter of 2022 the Company completed an exercise to assess the operating and capital requirements of the mine as well as the impact of inflation on the cost structure at Lindero for the life of the mine. The results reflected an increase in cash costs per tonne and capital requirements over the planned life of mine and decreased the associated future after-tax cash flows which resulted in a reduction of the estimated recoverable amount of Lindero. Discount rates for Lindero also increased to 7.1% compared to the 6.25% used in the 2021 impairment assessment due to higher interests rates and country risk. As a result, the Company recorded an impairment expense of $70.2 million in respect of its mining interests at the Lindero CGU. San Jose In 2022 the San Jose mine realized increased operating and capital costs in its cost structure due to inflation. In addition, the 2022 exploration drilling campaign failed to identify sufficient material to replace mined depletion which contributed to the reduction in mineral reserves and resulted in a shorter mine life. This update was integrated into a revised life of mine plan in the fourth quarter of 2022 which resulted in a reduction of the estimated recoverable amount of San Jose. As a result, the Company recorded an impairment expense of $9.2 million in respect of its mining interests at the San Jose CGU. Key Assumptions The projected cash flows used in impairment testing are significantly affected by changes in the assumptions of metal prices, estimated quantities of mineral reserves and mineral resources that form the basis for the life of mine plans, production cost estimates, capital requirements, and discount rates. The Company’s impairment testing incorporated the following key assumptions. Weighted Average Cost of Capital Projected cash flows were discounted using an after-tax discount rate that reflects the weighted average cost of capital for each CGU when considering estimates for risk free interest rates, market value of the Company’s equity, market return on equity, share volatility, debt-to-equity financing ratio and a country risk premium. Discount rates used in each impairment assessment were as follows: Cash Generating Unit Discount Rate Lindero 7.1% Yaramoko 7.9% San Jose 5.5% Pricing Assumptions Metal pricing including in the cash flow projects beyond five years is based on historical volatility and consensus analyst pricing. The metal price assumptions used in the Company’s impairment assessments were as follows: Metal 2023 2024 2025 2026 2027 Long Term Gold (Per Once) $1,800 $1,800 $1,725 $1,725 $1,700 $1,650 Silver (Per Ounce) $22.00 $22.50 $22.00 $23.00 $23.00 $21.50 Production and Costs The Company’s estimates of future cash costs of production and capital expenditures are based on the life of mine (LOM) plan for each cash generating unit. The LOM plans for each CGU are based on detailed research and analysis and consider the optimal level of capital investment, overall production levels and mine sequence, commodity prices, historical performance and other factors to maximize the value of the CGU. Projected future revenues reflect the forecasted production at each CGU as detailed in their LOM plans. The LOM may include mineralized material that does not qualify for inclusion as a mineral reserve or a mineral resource. This is consistent with the methodology used to measure value beyond proven and probable reserves when allocating the purchase price of a business combination to acquired mining assets. The Company’s estimate of recoverable value for accounting purposes is not a “preliminary assessment”, as defined in Canadian Securities Administrators’ National Instrument 43- 101 “Standards of Disclosure for Mineral Projects”. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2022 | |
SUBSEQUENT EVENTS | 31. SUBSEQUENT EVENTS On January 5, 2023, the Company announced that it had received notice of a resolution from the Secretaría de Medio Ambiente y Recursos Naturales (“SEMARNAT”) which provides that SEMARNAT has annulled and is re-assessing the 12-year extension to the environmental impact authorization (“EIA”) for the San Jose Mine that it had granted to Cuzcatlan in December 2021. Cuzcatlan initiated legal proceedings (the “Mexican Legal Proceedings”) in the Mexican Federal Administrative Court (the “Court”) to contest and revoke the annulment of the EIA. The Court has admitted the Mexican Legal Proceedings, and on March 10, 2023, Minera Cuzcatlan received notice that the Court has granted it a permanent injunction which allows the San Jose mine to continue to operate under the terms of the 12-year EIA until the determination of the Mexican Legal Proceedings. Until the determination of the Mexican Legal Proceedings, the Company has agreed with its lenders to certain temporary restrictions under the Amended Credit Facility as follows: ● Until the date that the Company receives a positive decision in the Mexican Legal Proceedings, the following conditions will apply: o The Company may not exercise the $50 million accordion feature. o The Company must maintain a minimum cash balance of $70 million. In the event, that the Company fails to maintain this minimum requirement over a period of 30 days, the availability of the credit under the facility will be reduced to $200 million. The credit availability will revert to $250 million once the Company re-establishes the minimum cash balance requirement over a period of 30 days. o The Company may not make any distributions, cash-based permitted acquisition and investments, nor any discretionary expansionary capital expenditures (other than those related to the completion of the Séguéla Project). o The Company is required to hedge 25% of its forecasted consolidated gold production for the period from February 14 to June 15, 2023. o The Company may not make investments in or provide financial assistance to non-guaranteeing subsidiaries in excess of $3,000,000 . ● In the event that: (1) the permanent injunction ceases to be in effect; (2) the Court upholds the SEMARNAT Resolution, (3) an Administrative Authority issues a resolution to cease operations at the San Jose Mine, or (4) a positive decision in the Mexican Legal Proceedings is not received before March 31, 2024, the availability under the Amended Credit Facility will be reduced to nil, and an event of default will occur thereunder. |
SIGNIFICANT ACCOUNTING POLICES
SIGNIFICANT ACCOUNTING POLICES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
SIGNIFICANT ACCOUNTING POLICES [abstract] | |
Basis of Presentation | These financial statements include the accounts of the Company. All significant intercompany transactions, balances, revenues, and expenses have been eliminated upon consolidation. Subsidiaries are included in the consolidated financial results of the Company from the effective date of acquisition or control and up to the effective date of disposition or loss of control. Control is achieved when the Company has power over the investee, is exposed to or has rights to variable returns from its involvement with an investee, and had the ability to affect those returns through its power over the investee. Fortuna Silver Mines Inc. is the ultimate parent entity of the group. At December 31, 2022, the principal subsidiaries of the Company, their geographic locations, and the ownership interests held by the Company, were as follows: Name Location Ownership Principal Activity Minera Bateas S.A.C. ("Bateas") Peru 100% Caylloma Mine Compania Minera Cuzcatlan S.A. de C.V. ("Cuzcatlan") Mexico 100% San Jose Mine Mansfield Minera S.A. ("Mansfield") Argentina 100% Lindero Mine Roxgold SANU S.A. (“Sanu”) Burkina Faso 90% Yaramoko Mine Roxgold SANGO S.A. ( “Sango”) Côte d’Ivoire 90% Séguéla Project |
Business Combination | (b) Business Combination A business combination is an acquisition of assets and liabilities that constitute a business. A business is an integrated set of activities and assets that consist of inputs and processes, including operational processes that, when applied to those inputs, have the ability to create outputs that provide a return to the Company and its shareholders. A business also includes those assets and liabilities that do not necessarily have all the inputs and processes required to produce outputs, but can be integrated with the inputs and processes of the Company to create outputs. When acquiring a set of activities or assets in the exploration and development stage, which may not have outputs, the Company considers other factors to determine whether the set of activities or assets is a business. Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred in a business combination is measured at fair value, which is allocated to the identifiable assets acquired and liabilities assumed based on the acquisition-date fair value. The excess of the cost of acquisition over the fair value of the Company’s share of the identifiable net assets acquired is recorded as goodwill. If the cost of acquisition is less than the fair value of the net assets acquired, the difference, or gain, is recognized directly in the consolidated statement of operations. The results of businesses acquired during the period are included in the financial statements from the date of acquisition. Acquisition-related costs are expensed as incurred. Provisional fair values are finalized within 12 months of the acquisition date. Measurement period adjustments are adjustments that arise from additional information obtained during the measurement period about facts and circumstances that existed at the acquisition date. |
Non-Controlling Interests | (c) Non-Controlling Interests Non-controlling interests represents equity interests in subsidiaries owned by outside parties. Non-controlling interests are recorded at their proportionate share of the fair value of identifiable net assets acquired on initial recognition. The share of net assets of subsidiaries attributable to non-controlling interests is presented as a component of equity. Their share of net income and other comprehensive income is recognized directly in equity even if the results of the non-controlling interest have a deficit balance. The Company recognizes transactions with non-controlling interest as transactions with equity shareholders. Changes in the Company’s ownership interest in subsidiaries that do not result in loss of control are accounted for as equity transactions. |
Consolidation, Functional and Presentation Currency | (d) Consolidation, Functional and Presentation Currency These financial statements are presented in United States Dollars (“$” or “US$” or “US dollars”), which is the functional currency of the Company. Reference to C$ are to Canadian dollars. All amounts in these financial statements have been rounded to the nearest thousand US dollars, unless otherwise stated. The functional currency for each entity consolidated within the Company's financial statements is determined by the currency of the primary economic environment in which it operates. The functional currency of all subsidiaries is US dollars except for those outlined in the table below. Name of Subsidiary Place of Incorporation Beneficial Common Share Ownership Interest Principal Activity Functional Currency Roxgold Inc. Canada 100% Holding CAD FR Gold Mining Inc. Canada 100% Holding CAD Fortuna Silver Mines Australia Pty Ltd. Australia 100% Corporate AUD LGL Exploration Côte d’Ivoire SA Côte d’Ivoire 100% Exploration XOF LGL Resources Côte d’Ivoire SA Côte d’Ivoire 100% Exploration XOF Assets and liabilities of the subsidiaries that have a functional currency other than US dollar are translated into US dollars at the exchange rate in effect on the consolidated statements of financial position date and revenues and expenses are translated at the average rate over the reporting period. Gains and losses from these translations are recognized in other comprehensive income. Transactions in foreign currencies are initially recorded in the functional currency at the exchange rate at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange at each financial position date. Foreign exchange gains or losses on translation to the functional currency of an entity are recorded in profit or loss. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate as at the date of the initial transaction. |
Cash, Cash Equivalents and Short Term Investments | (e) Cash, Cash Equivalents and Short-Term Investments Cash and cash equivalents include cash on hand, demand deposits, and money market instruments with maturities from the date of acquisition of 90 days or less, which are readily convertible to known amounts of cash and are subject to insignificant changes in value. Short-term investments consist of term deposits with original maturities in excess of three months but less than twelve months. Cash, cash equivalents and short-term investments are designated as amortized cost. |
Inventories | (f) Inventories Inventories include mineral concentrates, doré, leach pad, gold in-circuit, stockpiled ore, materials and supplies, which are valued at the lower of average production cost and estimated net realizable value. Production costs allocated to metal inventories include direct mining costs, direct labour costs, direct material costs, mine site overhead, depletion and amortization. Stockpiled ore that is not expected to be processed within the next twelve months is classified as non-current. Costs allocated to materials and supplies are based on weighted average costs and include all costs of purchase and other costs in bringing these inventories to their existing location and condition. In the heap leaching process, ore is stacked on the leach pad and treated with a chemical solution that dissolves the gold contained within the ore. The resulting pregnant solution is further processed in a plant where the gold is recovered. The cost of leach pad inventory is based on cost of mining, crushing, and leaching, including applicable depletion and amortization, and is removed as ounces of gold are recovered at the weighted average cost per recoverable ounce of gold on the leach pad. Estimates of recoverable gold in the leach pad are calculated based on the quantities of ore placed on the leach pad (measured tonnes added to the leach pad), the estimated grade of ore placed on the leach pad (based on assay data), and an estimated recovery percentage (based on estimated recovery assumptions from metallurgical testing). The nature of the leaching process inherently limits the ability to precisely monitor inventory levels. As a result, estimates are refined based on actual results and engineering studies over a period of time. The final recovery of gold from leach pad will not be known until the leaching process is concluded at the end of the mine life. If the carrying value exceeds the net realizable amount, a write-down is recognized. The write-down may be reversed in a subsequent period if the circumstances which caused the write-down no longer exist, to the extent that the related inventory has not been sold. Net realizable value is calculated as the estimated price at the time of sale based on prevailing metal prices less estimated future costs to convert the inventories into saleable form and estimated costs to sell. |
Exploration and Evaluation Assets | (g) Exploration and Evaluation Assets Exploration expenditures on properties for which the Company does not have title or rights to are expensed when incurred. Significant payments related to the acquisition of land and mineral rights and the costs to conduct a preliminary evaluation to determine that the property has potential to develop an economic ore body are capitalized as incurred. The time between initial acquisition and a full evaluation of a property’s potential is dependent on many factors including, but not limited to, location relative to existing infrastructure, the property’s stage of development, geological controls and metal prices. The Company capitalizes the cost of acquiring, maintaining its interest, and exploring mineral properties as exploration and evaluation assets until such time as the properties are placed into development, abandoned, sold, or considered to be impaired in value. If a mineable ore body is discovered, exploration and evaluation costs are reclassified to mining properties. The Company uses the following criteria in its assessment: ● the property has mineral reserves as referred to in Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”), and ● when legal, permitting, and social matters have been resolved sufficiently to allow mining of the ore body. Exploration and evaluation assets are tested for impairment when an indicator of impairment is identified and upon reclassification to mining properties. If no mineable ore body is discovered, all previously capitalized costs are expensed in the period in which it is determined the property has no economic value. Proceeds received from the sale of interests in exploration and evaluation assets are credited to the carrying value of the mineral properties, plant and equipment. Exploration costs that do not relate to any specific property are expensed as incurred. |
Mineral Properties, and Property, Plant and Equipment | (h) Mineral Properties, and Property, Plant and Equipment i. Mineral Properties and Development Costs For operating mines, all mineral property expenditures are capitalized and amortized based on a unit-of-production method considering the expected production to be obtained over the life of the mineral property. The expected production includes proven and probable reserves and for the San Jose, Caylloma and Yaramoko mines the portion of inferred resources expected to be extracted economically as part of the production cost. Capitalized costs of producing properties are amortized on a unit-of-production basis over proven and probable reserves and the portion of inferred resources where it is considered highly probable that those resources are expected to be extracted economically. The expected production to be obtained over the life of the mineral property is based on our life-of-mine production plans which for San Jose, Caylloma and Yaramoko include a portion of inferred resources, and therefore differ from the life-of-mine plans the Company publishes as part of our NI 43-101 compliant technical reports which are based on reserves only. The decision to use inferred resources, and the portion of inferred resources to be included varies for each operation and is based on the geological characteristics of the ore body, the quality and predictability of inferred resources, and the conversion of inferred resources into measured and indicated (“M&I”) that the Company has historically achieved in the past. Many factors are taken into account during resource classification including; the quality of drilling and sampling, drill/sample spacing, sample preparation and analysis, geological logging and modelling, database construction, geological interpretation and modelling, statistical/geostatistical analysis, interpolation method, local estimation, engineering studies, economic parameters, and reconciliation with actual results. Once the integrity of the data has been established, two important considerations around classification of resources are geologic continuity and possible variation of thickness and grade between samples. For our inferred resources at San Jose, Caylloma and Yaramoko we are able to achieve a significant level of confidence on the existence of mineable material as geological continuity has been established by consistent drill hole intercepts both along strike and down-dip which provides us with reasonable confidence in the location of the structures. The vast majority of the inferred resources are interpolated, estimated between existing drill hole intercepts, as opposed to extrapolated where the grades are estimated beyond the furthest sample point, adding to our confidence in the geologic continuity of the veins. Furthermore, San Jose, Caylloma and Yaramoko are not structurally complex deposits where faulting has disrupted geologic continuity. With regards to the variation of thickness and grade between samples, the Company uses statistical means to calculate the probability that tonnage and grade content falls within a certain accuracy over a given timeframe. If the potential variation is estimated to be within ± 25% at 90% confidence globally, it is classified as an inferred resource. This is equivalent to stating that the Company has 95% confidence that greater than 75% of the inferred tonnes, grade, and metal content will ultimately be recovered by the mine and hence that the same percentage or higher will be converted from an inferred resource to an indicated resource through infill drilling as per the Company’s policy of upgrading prior to production. As part of the process to include inferred resources into our life-of-mine production plans, the Company applies an economic cut-off to identify only the material that can be considered profitable to mine within our mine designs, and at this time we apply a conversion or “risk” factor to the mining blocks comprised of inferred resources that we include in such mine production plans. This conversion factor is based on the predictability of conversion derived from statistical estimates of confidence as described above and the support from historic conversion rates of inferred resources into M&I at each of our mines. The conversion factors used in our 2022 and 2021 life-of-mine plans were 90% at San Jose, 90% at Caylloma, and 100% at Yaramoko. The percentage of inferred resources included as a component of the total mineable inventory (reserve and resource) considered in the 2022 life-of-mine evaluation for each operation as of December 31, 2022, was San Jose 31% (2021: 35% ), Caylloma 41% (2021: 31% ), and Yaramoko 8% (2021: 11% ). The Company reviews the conversion factors including past experience in assessing the future expected conversion of inferred resources to be used in the life-of-mine plans for inclusion of inferred resources once a year in light of new geologic information and conversion data and when events or circumstances indicate that a review should be made. The Company continually monitors expected conversion and any changes in estimates that arise from this review are accounted for prospectively. Significant estimation is involved in determining resources and in determining the percentage of resources ultimately expected to be converted to reserves, which we determine based on careful consideration of both internal and external technical and economic data. Estimation of future conversion of resources is inherently uncertain and involves significant judgment and actual outcomes may vary from these judgments and estimates and such outcomes may have a material impact on the results. Revisions to these estimates are accounted for in the period in which the change in the estimate arises. ii. Property, Plant and Equipment Property, plant and equipment are recorded at cost, net of accumulated depreciation and impairments. Costs directly related to construction projects are capitalized to work in progress until the asset is available for use in the manner intended by management. Assets, other than capital works in progress, are depreciated to their residual values over their estimated useful lives as follows: Land and buildings Land Not depreciated Mineral properties Units of production Declining balance Buildings, located at the mine Units of production Declining balance Buildings, others (1) 6 - 10 years Straight line Leasehold improvements (1) 4 - 8 years Straight line Plant and equipment Processing plant Units of production Declining balance Machinery and equipment (1) 3 - 12 years Straight line Furniture and other equipment (1) 2 - 12 years Straight line Transport units 4 - 5 years Straight line Capital work in progress Not depreciated (1) The lesser of useful life or life of mine. Equipment under finance lease is initially recorded at the present value of minimum lease payments at the inception of the lease and depreciated over the shorter of the lease term or useful life. Spare parts and components included in machinery and equipment are depreciated over the shorter of the useful life of the component or the related machinery and equipment. Borrowing costs attributed to the construction of qualifying assets are capitalized to mineral properties, plant and equipment, and are included in the carrying amounts of related assets until the asset is available for use in the manner intended by management. The sales proceeds and associated production costs incurred during commissioning of qualifying assets under capital works in progress are recognized in profit or loss. On an annual basis, the depreciation method, useful economic life, and residual value of each component asset is reviewed with any changes recognized prospectively over its remaining useful economic life. iii. Stripping cost Pre-production stripping costs are generally capitalized and amortized over the production life of the mine using the unit-of-production method. Stripping costs incurred during the production stage are incurred in order to produce inventory or to improve access to ore which will be mined in the future. Where the costs are incurred to produce inventory, the production stripping costs are accounted for as a cost of producing those inventories. Where the costs are incurred to improve access to ore which will be mined in the future, the costs are deferred and capitalized to the statement of financial position as a stripping activity asset (included in mining interest) if the following criteria are met: ● improved access to the ore body is probable; ● the component of the ore body can be accurately identified; and ● the costs relating to the stripping activity associated with the component can be reliably measured. If these criteria are not met, the costs are expensed in the period in which they are incurred. The stripping activity asset is subsequently depleted using the units-of-production depletion method over the life of the identified component of the ore body to which access has been improved as a result of the stripping activity. |
Asset Impairment | (i) Asset Impairment At the end of each reporting period, the Company assesses for impairment indicators and if there are such indicators, then the Company performs a test of impairment. For the purpose of assessing impairment, assets are grouped at the lowest level for which there are separately identifiable cash inflows or cash generating units. These are typically individual mines or development projects. Brownfields exploration projects, located close to existing mine infrastructure, are assessed for impairment as part of the associated mine cash generating unit. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less cost of disposal (“FVLCD”) and value in use. When the recoverable amount is assessed using pre-tax discounted cash flow techniques, the resulting estimates are based on detailed mine and/or production plans. For value in use, recent cost levels are considered, together with expected changes in costs compatible with the current condition of the business. The cash flow forecasts are based on best estimates of the expected future revenues and costs, including the future cash costs of production, sustaining capital expenditures, and reclamation and closure costs. Where a FVLCD model is used, the cash flow forecast includes net cash flows expected to be realized from extraction, processing, and sale of mineral resources that do not currently qualify for inclusion in proven or probable reserves and the portion of resources expected to be extracted economically. Where an impairment loss subsequently reverses, the carrying amount of the asset or cash-generating unit is increased to the revised estimate of recoverable amount but not beyond the carrying amount, net of depreciation and amortization, that would have been determined had no impairment loss been recognized for the asset or cash-generating unit in prior years. A reversal of an impairment loss is recognized into earnings immediately. |
Borrowing Costs | (j) Borrowing Costs Interest and other financing costs incurred that are attributable to acquiring and developing exploration and development stage mining properties and constructing new facilities (“qualifying assets”), are capitalized and included in the carrying amounts of qualifying assets until those qualifying assets are capable of operating in the manner intended by management. The capitalization of borrowing costs incurred commences on the date when the following three conditions are met: ● expenditures for the qualifying asset are being incurred; ● borrowing costs are being incurred; and, ● activities that are necessary to prepare the qualifying asset for its intended use are being undertaken. Borrowing costs incurred after the qualifying assets are substantially complete are expensed. Transaction costs, including legal, upfront commitment fees and other costs of issuance, associated with debt are recorded against the debt and are amortized over the term of the credit facility using the effective interest rate method. All other borrowing costs are expensed in the period in which they are incurred. |
Assets Held for Sale | (k) Assets Held for Sale A non-current asset is classified as held for sale when it meets the following criteria: ● The non-current asset is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets; and, ● the sale of the non-current asset is highly probable. For the sale to be highly probable: o the appropriate level of management must be committed to a plan to sell the asset; o an active program to locate a buyer and complete the plan must have been initiated; o the non-current asset or disposal group must be actively marketed for sale at a price that is reasonable in relation to its current fair value; o the sale should be expected to qualify for recognition as a completed sale within one year from the date of classification as held for sale (with certain exceptions); and o actions required to complete the plan should indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. Assets held for sale are not depreciated and are recorded at the lower of their carrying amount and fair value less costs to sell. |
Income Taxes | (l) Income Taxes Income tax expense consists of current and deferred tax expense. Current tax expense is the expected tax payable on the taxable income for the year using tax rates enacted or substantively enacted at period end adjusted for amendments to tax payable with regards to previous years. Deferred tax assets and liabilities are recognized for deferred tax consequences attributable to unused tax loss carry forwards, unused tax credits, and differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis (“temporary differences”). Deferred tax assets and liabilities are measured using the enacted or substantively enacted tax rates expected to apply when the asset is realized, or the liability is settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in profit or loss in the period that substantive enactment occurs. A deferred tax asset is recognized to the extent that it is probable that future taxable income will be available against which the asset can be utilized. To the extent that the Company does not consider it probable that a deferred tax asset will be recovered, the deferred tax asset is reduced. The following temporary differences do not result in deferred tax assets or liabilities: ● the initial recognition of assets or liabilities, not arising in a business combination, that does not affect accounting or taxable income; ● goodwill; and ● investments in subsidiaries, associates and jointly controlled entities where the timing of reversal of the temporary differences can be controlled and reversal in the foreseeable future is not probable. Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities, and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis. |
Provisions | (m) Provisions i. Closure and Reclamation Provisions Future obligations to retire an asset, including dismantling, remediation and ongoing treatment and monitoring of the site related to normal operation are initially recognized and recorded as a liability based on estimated future cash flows discounted at the risk-free rate. The closure and reclamation provision (“CRP”) is adjusted at each reporting period for changes to the expected amount of cash flows required to discharge the liability, the timing of such cash flows and the risk-free discount rate. The liability is accreted to full value over time through periodic charges to profit or loss. The amount of the CRP initially recognized is capitalized as part of the related asset’s carrying value and amortized to profit or loss. The method of amortization follows that of the underlying asset. The costs related to a CRP are only capitalized to the extent that the amount meets the definition of an asset and can bring about future economic benefit. For a closed site or where the asset which generated a CRP no longer exists, there is no longer a future benefit related to the costs and as such, the amounts are expensed. Revisions in estimates or new disturbances result in an adjustment to the CRP with an offsetting adjustment to the asset, unless there is no future benefit, in which case they are expensed. Due to uncertainties inherent in environmental remediation, the ultimate cost of future site closure and reclamation could differ from the amounts provided. The estimate of future site closure and reclamation costs is subject to change based on amendments to laws and regulations, changes in technologies, price increases and changes in interest rates, and as new information concerning the Company’s closure and reclamation obligations becomes available. Such changes are reflected prospectively in the determination of the provision. ii. Environmental Disturbance Restoration Provisions During the operating life of an asset, events such as infractions of environmental laws or regulations may occur. These events are not related to the normal operation of the asset and are referred to as environmental disturbance restoration provisions (“EDRP”). The costs associated with an EDRP are accrued and charged to earnings in the period in which the event giving rise to the liability occurs. Any subsequent adjustments to an EDRP due to changes in estimates are also charged to earnings in the period of adjustment. These costs are not capitalized as part of the long-lived asset’s carrying value. iii. Other Provisions Provisions are recognized when a present legal or constructive obligation exists as a result of past events, and it is probable that an outflow of resources that can be reliably estimated will be required to settle the obligation. Where the effect of the time value of money is material the provision is discounted using an appropriate current market based pre-tax discount rate. |
Common Share Capital | (n) Common Share Capital Shares are classified as equity. Costs directly attributable to the issuance of common shares are shown in equity as a deduction from the proceeds. |
Share-Based Payments | (o) Share-Based Payments The fair value method of accounting is used for share-based payment transactions. Under this method, the cost of stock options and other equity-settled share-based payment arrangements are recorded based on the estimated fair value at the grant date and charged to earnings over the vesting period. Where awards are forfeited because non-market based vesting conditions were not satisfied, the expense previously recognized is reversed in the period the forfeiture occurs. Share-based payment expenses relating to cash-settled awards, including deferred share units, restricted share units, and performance share units, are accrued and expensed over the vesting period based on the quoted market value of the Company’s common shares. As these awards will be settled in cash, the expense and liability are adjusted at each reporting period for any changes in the underlying share price. Equity settled share-based payment transactions with parties other than employees are measured at the fair value of the goods or services received, except where that fair value cannot be estimated reliably, in which case they are measured at the fair value of the equity instruments granted, measured at the date the Company obtains the goods or the counter party renders the services. i. Stock Option Plan The Company applies the fair value method of accounting for all stock option awards. Under this method, the Company recognizes a compensation expense for all stock options awarded to employees, based on the fair value of the options on the date of grant which is determined by using the Black-Scholes option pricing model. The fair value of the options is expensed over the graded vesting period of the options. ii. Deferred Share Unit Plan Deferred share units (“DSU”) are typically granted to non-executive directors of the Company. They are payable in cash upon resignation, retirement, removal, failure to achieve re-election, or upon a change of control of the Company. The DSU compensation liability is accounted for based on the number of DSUs outstanding and the quoted market value of the Company’s common shares at the financial position date. The year-over-year change in the DSU compensation liability is recognized in profit or loss. iii. Share Unit Plans The Company’s amended and restated share unit plan (the “SU Plan”) covers all restricted share units (“RSUs”) and performance share units (“PSUs”) granted by the Company on and after March 1, 2015. Restricted Share Units The Company’s RSUs are settled in either cash or equity, as determined by the Company’s Board of Directors at the grant date and typically vest over three years . For cash settled RSUs, the share-based payment expense is adjusted at each reporting period to reflect any change in the quoted market price of the Company’s common shares and the vesting of each RSU grant, with a corresponding amount recorded in Trade and Other Payables, and Other Non-Current Liabilities. For equity-settled RSUs, the fair value is determined based on the quoted market price of the Company’s common shares at the date of grant, and the fair value is recognized as a share-based payment expense over the vesting period with a corresponding amount recorded in equity reserves. Performance Share Units The Company’s PSUs are performance-based awards for the achievement of specified performance metrics by specified deadlines and are settled in either cash or equity, as determined by the Company’s Board of Directors at the grant date and typically vest over three years . For cash settled PSUs, the share-based payment expense is adjusted at each reporting period to reflect any change in the quoted market price of the Company’s common shares, the vesting of each PSU grant and the expected performance factors with a corresponding amount recorded in Trade and Other Payables. For equity-settled PSUs, the fair value is determined based on the quoted market price of the Company’s common shares at the date of grant and the number of PSUs expected to vest based on the performance factors. The fair value is recognized as a share-based payment expense over the vesting period with a corresponding amount recorded in equity reserves. |
Related Party Transactions | (p) Related Party Transactions Parties are related if one party has the ability directly, or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control. Related parties may be individuals or corporate entities, and include key management personnel of the Company. A transaction is a related party transaction when there is a transfer of resources or obligations between related parties. |
Earnings per Share | (q) Earnings per Share Basic earnings per share (“EPS”) is computed by dividing the net income for the year by the weighted average number of common shares outstanding during the year. The diluted earnings per share calculation is based on the weighted average number of common shares outstanding during the year, adjusted for the effects of dilutive common share equivalents. This method requires that the dilutive effect of outstanding options and equity settled units issued should be calculated using the treasury stock method. This method assumes that all common share equivalents have been exercised at the beginning of the year (or at the time of issuance, if later), and that the funds obtained thereby were used to purchase common shares of the Company at the average trading price of the common shares during the year, but only if dilutive. Dilution from convertible debentures is calculated using the if-converted method, based on the number of shares to be issued upon conversion of the convertible debentures, with a corresponding adjustment to net income for the after-tax interest expense related to the convertible debentures. |
Financial Instruments | (r) Financial Instruments i Classification and measurement of financial assets and financial liabilities Financial assets are measured as either: amortized cost; fair value through other comprehensive income (“FVOCI”) or fair value through profit or loss (“FVTPL”). All non-derivative financial liabilities are measured at amortized cost. The classification of financial assets is generally based on the business model in which a financial asset is managed and its contractual cash flow characteristics. Derivatives embedded in contracts where the host is a financial asset in the scope of the standard are never separated, and instead the hybrid financial instrument is assessed for classification. A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as at FVTPL: ● it is held within a business model whose objective is to hold assets to collect contractual cash flows; and ● its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL: ● it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and ● its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. On initial recognition of an equity investment that is not held for trading, the Company may irrevocably elect to present subsequent changes in the investment’s fair value in other comprehensive income (OCI). This election is made on an investment-by-investment basis. All financial assets not classified as measured at amortized cost or FVOCI as described above are measured at FVTPL. Components of compound financial instruments are separately classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument. The financial liability is initially recognized at fair value, net of an allocation of issuance costs, and is subsequently measured at amortized cost. The equity component is initially measured based on the residual amount, net of an allocation of issuance costs, and is not subsequently remeasured. Equity instruments issued by the Company are recognized at the proceeds received, net of direct issue costs. Repurchase of the Company’s own equity instruments is recognized and deducted directly in equity. No gain or loss is recognized in profit or loss on the purchase, sale, or cancellation of our own equity instruments. No gain or loss is recognized on the issue of our own equity instruments, unless the equity is issued to settle a liability. Financial Liabilities at Amortized Cost – Financial liabilities are measured at amortized cost using the effective interest method, unless they are required to be measured at fair value through profit or loss, or the Company has opted to measure them at FVTPL. Debt and accounts payable and accrued liabilities are recognized initially at fair value, net of any transaction costs incurred, and subsequently at amortized cost using the effective interest method The following accounting policies apply to the subsequent measurement of financial assets: ● Financial assets at FVTPL - These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognized in profit or loss. ● Financial assets at amortized cost - These assets are subsequently measured at amortized cost using the effective interest method. The amortized cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss. ● Equity investments at FVOCI - These assets are subsequently measured at fair value. Dividends are recognized as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Gains or losses recognized on the sale of the equity investment are recognized in OCI and are never reclassified to profit or loss. ii Impairment of Financial Assets An entity is required to recognize expected credit losses when financial instruments are initially recognized and to update the amount of expected credit losses recognized at each reporting date to reflect changes in the credit risk of the financial instruments. For the Company’s trade receivables, it determines the lifetime expected losses for all of its trade receivables. The expected lifetime credit loss provision for the Company’s trade receivables is based on historical counterparty default rates and adjusted for relevant forward-looking information, when required. iii Hedge Accounting The Company occasionally uses interest rate swaps to hedge against the variability in cash flows arising from changes in floating interest rate borrowings relating to its credit facility. The last interest rate swap matured on January 26, 2022. Management qualitatively assesses that the changes in value of the hedging instrument and the hedged item will move in opposite directions and will be perfectly offset. As both counterparties to the derivative are investment grade, the effect of credit risk is considered as neither material nor dominant in the economic relationship. The portion of the gain or loss on the hedging instrument that is determined to be effective will be recognized directly in other comprehensive income while the amount that is determined to be ineffective, if any, will be recorded in the profit or loss during the life of the hedging relationship. |
Revenue Recognition | (s) Revenue Recognition The Company earns revenue from contracts with customers related to its concentrate and doré sales. Revenue from contracts with customers is recognized when a customer obtains control of the concentrate or the doré and the Company satisfies its performance obligation. The Company considers the terms of the contract in determining the transaction price, which is the amount the entity expects to be entitled to in exchange for the transferring of the concentrates. The transaction price of a contract is allocated to each performance obligation based on its stand-alone selling price. The Company satisfies its performance obligations for its concentrate sales based upon specified contract terms which are generally upon delivery to the customer at a specified warehouse or upon loading of the concentrate onto a vessel. The Company typically receives payment within one to four weeks of delivery. Doré sales are recognized when the Company satisfies its performance obligation and control is transferred to the customer upon payment. Final weights and assays are adjusted on final settlement which is approximately one month after delivery. Revenue from concentrate sales is recorded based upon forward market price of the expected final sales price date. IFRS 15 Revenue from Contracts with Customers (“IFRS 15”) does not consider provisional price adjustments associated with concentrate sales to be revenue from contracts with customers as they arise from changes in market pricing for silver, gold, lead and zinc between the delivery date and settlement date. As such, the provisional price adjustments are accounted for as derivatives and presented separately in Note 19 of these financial statements. |
Segment Reporting | (t) Segment Reporting The Company’s operating segments are based on the reports reviewed by the senior management group that are used to make strategic decisions. The Chief Executive Officer, as chief operating decision maker, considers the business from a geographic perspective considering the performance of the Company’s business units. A geographical segment is a distinguishable component of the entity that is engaged in providing products or services within a particular economic environment and is subject to risks and returns that are different than those of segments operating in other economic environments. The business operations comprise the mining and processing of gold, silver-lead, zinc, and silver-gold and the sale of these products. |
Adoption of New Accounting Standards and those issued but not yet effective | (u) Adoption of New Accounting Standards, Interpretation or Amendments The following accounting standards were adopted for the financial year ending December 31, 2022, ● Onerous Contracts – Cost of Fulfilling a Contract (Amendments to IAS 37); ● Annual Improvements to IFRS Standards 2018–2020; and ● Reference to the Conceptual Framework (Amendments to IFRS 3) The adoption of these standards did not have a material effect on the Company’s financial statements. (v) New Accounting Standards Issued but not yet Effective A number of new standards are effective for annual periods beginning on or after January 1, 2023 and earlier application is permitted; however, the Company has not early adopted any new or amended standards in preparing these financial statements. ● Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2) This amendment requires companies to provide more specific disclosures about their accounting policies and the judgments made in applying these policies that have the most significant effect on the financial statements. The new definition of significant accounting policies, now material accounting policy information, is broader in scope, capturing accounting policy information that is important to understanding the judgments made in preparing the financial statements, and those policies that require the most significant judgments and estimates by the Company. This amendment is effective for annual reporting periods beginning on or after January 1, 2023. The Company does not expect the adoption of this amendment to have a material impact on its consolidated financial statements. ● Deferred Tax related to Assets and Liabilities arising from Single Transaction (Amendment to IAS 12) This amendment clarifies the accounting for deferred tax arising from single transactions, such as business combinations and asset acquisitions, by requiring companies to recognize deferred tax for temporary differences that arise from the initial recognition of assets and liabilities in a single transaction. This amendment is effective for annual reporting periods beginning on or after January 1, 2023. The Company does not expect the adoption of this amendment to have a material impact on its consolidated financial statements. The Company is currently evaluating the impact of the following amended standard, effective January 1, 2024, and interpretations on its consolidated financial statements: ● Classification of Liabilities as Current or Non-current (Amendments to IAS 1); |
USE OF ESTIMATES, ASSUMPTIONS_2
USE OF ESTIMATES, ASSUMPTIONS, AND JUDGEMENTS (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Use of Estimates, Assumptions and Judgements [abstract] | |
Critical Accounting Estimates and Assumptions | (a) Critical Accounting Estimates and Assumptions Areas where critical accounting estimates and assumptions have the most significant effect on the amounts recognized in the consolidated financial statements include: i. Mineral Reserves and Resources and the Life of Mine Plan The Company estimates its mineral reserves and mineral resources in accordance with the requirements of NI 43-101. Estimates of the quantities of the mineral reserves and mineral resources form the basis for the Company’s life of mine plans, which are used for the calculation of depletion expense under the units of production method, impairment tests, and forecasting the timing of the payments related to the environmental reclamation provision. Significant estimation is involved in determining the reserves and resources included within the Company’s life of mine plans. Changes in forecast prices of commodities, exchange rates, production costs or recovery rates may result in the Company’s life-of-mine plan being revised and such changes could impact depletion rates, asset carrying values and the environmental reclamation provision. As at December 31, 2022, the Company used the following long-term prices for the reserve and resource estimations: gold $1,600 /oz, silver $21 /oz, lead $2,100 /t and zinc $2,600 /t. In addition to the estimates above, estimation is involved in determining the percentage of resources ultimately expected to be converted to reserves and hence included in the Company’s life of mine plans. The Company’s life of mine plans include a portion of inferred resources as the Company believes this provides a better estimate of the expected life of mine for certain types of deposits, in particular for vein type structures. The percentage of inferred resources out of the total tonnage included in the life of mine plans is based on site specific geological, technical, and economic considerations. Estimation of future conversion of resources is inherently uncertain and involves judgement, and actual outcomes may vary from these judgements and estimates and such changes could have a material impact on the financial results. Some of the key assumptions in the estimation process include geological continuity, stationarity in the grades within defined domains, reasonable geotechnical and metallurgical conditions, treatment of outlier (extreme) values, cut-off grade determination and the establishment of geostatistical and search parameters. Revisions to these estimates are accounted for prospectively in the period in which the change in estimate arises. ii. Valuation of Mineral Properties and Exploration Properties The Company carries its mineral properties at cost less accumulated depletion and any accumulated impairment. The costs of each property and related capitalized expenditures are depleted over the economic life of the property on a units-of-production basis. When a property is abandoned or when there is an impairment, costs are charged to profit or loss. The Company undertakes a review of the carrying values of mining properties and related expenditures whenever events or changes in circumstances indicate that their carrying values may exceed their estimated recoverable amounts determined by reference to estimated future operating results and discounted net cash flows. Where previous impairment has been recorded, the Company analyzes any impairment reversal indicators. An impairment loss is recognized when the carrying value of those assets is not recoverable. In undertaking this review, management of the Company is required to make significant estimates of, amongst other things, future production and sales volumes, metal prices, discount rates, mineral resource and reserve quantities, future operating and capital costs to the end of the mine’s life, and reclamation costs. These estimates are subject to various risks and uncertainties which may ultimately have an effect on the expected recoverability of the carrying values of the mining properties and related expenditures. The Company, from time to time, acquires exploration and development properties. When properties are acquired, the Company must determine the fair value attributable to each of the properties. When the Company conducts exploration on a mineral property and the results from the exploration do not support the carrying value, the property is written down to its new fair value which could have a material effect on the consolidated statement of financial position and the consolidated income statement. iii. Deferred stripping costs In determining whether stripping costs incurred during the production phase of a mining property relate to mineral reserves that will be mined in a future period and therefore should be capitalized, the Company makes estimates of the proportion of stripping activity which relates to extracting ore in the current period versus the proportion which relates to obtaining access to ore reserves which will be mined in the future. iv. Inventory Finished goods, work-in-process, heap leach ore, and stockpile ore are valued at the lower of the average production costs or net realizable value. The assumptions used in the valuation of work-in process inventories include estimates of gold contained in the ore stacked on leach pads, assumptions of the amount of gold stacked that is expected to be recovered from the leach pads, the amount of gold in the mill circuits and assumption of the gold price expected to be realized when the gold is recovered. If these estimates or assumptions prove to be inaccurate, the Company could be required to write-down the recorded value of its work-in-process inventories, which would reduce the Company's earnings and working capital. v. Reclamation and Other Closure Provisions The Company has obligations for reclamation and other closure activities related to its mining properties. The future obligations for mine closure activities are estimated by the Company using mine closure plans or other similar studies which outline the requirements that will be carried out to meet the obligations. Because the obligations are dependent on the laws and regulations of the countries in which the mines operate, the requirements could change as a result of amendments in the laws and regulations relating to environmental protection and other legislation affecting resource companies. As the estimate of the obligations is based on future expectations, a number of estimates and assumptions are made by management in the determination of closure provisions. vi. Revenue from metal in concentrate The Company’s sales of metal in concentrates allow for price adjustments based on the market price at the end of the relevant quotational period (“QP”) stipulated in the contract. These are referred to as provisional pricing arrangements and are such that the selling price for metal in concentrate is based on the prevailing spot price on a specified future date. At each balance sheet date, the Company estimates the value of the trade receivable using forward metal prices. Adjustments to the sale price occur based on movements in quoted market prices up to the end of the QP. The period between provisional invoicing and the end of the QP is generally between one and three months. Any future changes over the QP are embedded within the provisionally priced trade receivables and are, therefore, within the scope of IFRS 9 and not within the scope of IFRS 15. As such, the provisional price adjustments are accounted for as derivatives and presented separately in Note 19 of these financial statements. vii. Contingencies Contingencies can be either possible assets or possible liabilities arising from past events which, by their nature, will only be resolved when one or more future events not within our control occur or fail to occur. The assessment of such contingencies inherently involves the exercise of significant judgement and estimates of the outcome of future events. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings or regulatory or government actions that may negatively impact our business or operations, the Company with assistance from its legal counsel evaluates the perceived merits of any legal proceedings or unasserted claims or actions. A liability is recognized in the consolidated financial statements when the outcome of the legal proceedings is probable and the estimated settlement amount can be estimated reliably. Contingent assets are not recognized in the consolidated financial statements until virtually certain. |
Critical Accounting Judgements in Applying the Entity's Accounting Policies | (b) Critical Accounting Judgements in Applying the Entity’s Accounting Policies Judgements that have the most significant effect on the amounts recognized in the Company’s consolidated financial statements are as follows: i. Income Taxes Deferred tax assets and liabilities are determined based on differences between the financial statement carrying values of assets and liabilities and their respective income tax bases and losses carried forward. The determination of the ability of the Company to utilize tax loss carryforwards to offset deferred tax liabilities requires management to exercise judgement and make certain assumptions about the future performance of the Company. Management is required to assess whether it is “probable” that the Company will benefit from these prior losses and other deferred tax assets. Changes in economic conditions, metal prices and other factors could result in revisions to the estimates of the benefits to be realized or the timing of utilization of the losses. ii. Assessment of Impairment and Reversal of Impairment Indicators Management applies significant judgement in assessing whether indicators of impairment or impairment reversal exist for an asset or a group of assets. External sources of information the Company considers include changes in the market, economic and legal environment in which the Company operates that are not within its control and affect the recoverable amount of mining interests. Internal sources of information the Company considers include the manner in which mining properties and plant and equipment are being used or are expected to be used, and indicators of economic performance of the assets. iii. Functional Currency The functional currency for the Company and its subsidiaries is the currency of the primary economic environment in which each operates. The determination of functional currency may require certain judgements to determine the primary economic environment. The Company reconsiders the functional currency used when there is a change in the events and conditions which determined the primary economic environment. iv. Leases Significant judgements made by management in the accounting for leases primarily included whether the lease conveys the right to use a specific asset, whether the Company obtains substantially all of the economic benefits from the use of the asset, whether the Company has the right to direct the use of the asset, evaluating the appropriate discount rate to use to discount the lease liability for each lease or groups of assets, and to determine the lease term where a contract includes renewal options. Significant judgements over these factors would affect the present value of the lease liabilities, as well as the associated amount of the right-of-use (“ROU”) asset. v. Value-added tax (“VAT”) receivable Timing of collection of VAT receivables is uncertain as VAT refund procedures require a significant amount of information and follow-up. The Company assesses the recoverability of the amounts receivable at each reporting date and the expected timing of the recovery, which are impacted by several factors, including the status of discussions with the tax authorities, and current interpretation of relevant VAT legislation and regulation. Changes in these judgements can materially affect the amount recognized as VAT receivable and could result in an increase in other expenses recognized in profit or loss and the presentation of current and non-current VAT receivable. |
SIGNIFICANT ACCOUNTING POLICE_2
SIGNIFICANT ACCOUNTING POLICES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SIGNIFICANT ACCOUNTING POLICES [abstract] | |
Disclosure of subsidiaries | Name Location Ownership Principal Activity Minera Bateas S.A.C. ("Bateas") Peru 100% Caylloma Mine Compania Minera Cuzcatlan S.A. de C.V. ("Cuzcatlan") Mexico 100% San Jose Mine Mansfield Minera S.A. ("Mansfield") Argentina 100% Lindero Mine Roxgold SANU S.A. (“Sanu”) Burkina Faso 90% Yaramoko Mine Roxgold SANGO S.A. ( “Sango”) Côte d’Ivoire 90% Séguéla Project |
Schedule of useful life of property, plant and equipment | Land and buildings Land Not depreciated Mineral properties Units of production Declining balance Buildings, located at the mine Units of production Declining balance Buildings, others (1) 6 - 10 years Straight line Leasehold improvements (1) 4 - 8 years Straight line Plant and equipment Processing plant Units of production Declining balance Machinery and equipment (1) 3 - 12 years Straight line Furniture and other equipment (1) 2 - 12 years Straight line Transport units 4 - 5 years Straight line Capital work in progress Not depreciated (1) The lesser of useful life or life of mine. |
TRADE AND OTHER RECEIVABLES (Ta
TRADE AND OTHER RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
TRADE AND OTHER RECEIVABLES [abstract] | |
Schedule of Trade and Other Receivables | As at December 31, 2022 December 31, 2021 Trade receivables from doré and concentrate sales $ 23,977 $ 25,718 Advances and other receivables 7,443 4,424 Value added taxes recoverable 36,745 46,345 Trade and other receivables $ 68,165 $ 76,487 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
INVENTORIES [abstract] | |
Schedule of Inventories | As at Note December 31, 2022 December 31, 2021 Concentrate stockpiles $ 2,161 $ 1,711 Doré bars 4,494 3,456 Leach pad and gold-in-circuit 31,649 30,321 Ore stockpiles 52,692 39,292 Materials and supplies 44,476 31,437 Total inventories $ 135,472 $ 106,217 Less: non-current portion 9 (43,439) (20,398) Current inventories $ 92,033 $ 85,819 |
OTHER CURRENT ASSETS (Tables)
OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
OTHER CURRENT ASSETS [abstract] | |
Schedule related to other current assets | As at December 31, 2022 December 31, 2021 Derivatives $ 19 $ 1,490 Prepaid expenses 11,180 8,060 Investments in equity securities 78 416 Assets held for sale 26 - Income tax receivable 718 1,713 Other current assets $ 12,021 $ 11,679 |
MINERAL PROPERTIES AND PROPER_2
MINERAL PROPERTIES AND PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Schedule Related to Property, Plant and Equipment | Mineral Properties - Depletable Mineral Properties - Non depletable Construction in Progress Property, Plant & Equipment Total COST Balance at December 31, 2021 $ 758,112 $ 719,663 $ 57,759 $ 675,486 $ 2,211,020 Additions 74,301 35,468 117,860 14,255 241,884 Changes in closure and reclamation provision (10,024) 5,238 - (235) (5,021) Disposals (372) (5,502) - (3,313) (9,187) Transfers 44,982 (42,598) (20,972) 18,588 - Balance at December 31, 2022 $ 866,999 $ 712,269 $ 154,647 $ 704,781 $ 2,438,696 ACCUMULATED DEPLETION AND IMPAIRMENT Balance at December 31, 2021 $ 275,460 $ - $ - $ 223,206 $ 498,666 Disposals - - - (1,970) (1,970) Impairment (Note 30) 117,237 - - 65,605 182,842 Depletion and depreciation 113,571 - - 77,966 191,537 Balance at December 31, 2022 $ 506,268 $ - $ - $ 364,807 $ 871,075 Net Book Value at December 31, 2022 $ 360,731 $ 712,269 $ 154,647 $ 339,975 $ 1,567,622 Mineral Properties - Depletable Mineral Properties - Non depletable Construction in Progress Property, Plant & Equipment Total COST Balance at December 31, 2020 $ 327,414 $ 250,145 $ 188,960 $ 378,754 $ 1,145,273 Acquisition of Roxgold 112,499 697,537 15,047 70,453 895,536 Additions 1 54,882 12,467 81,343 23,433 172,125 Changes in closure and reclamation provision 2,262 1,552 - (85) 3,729 Disposals - - - (5,643) (5,643) Transfers 261,055 (242,038) (227,591) 208,574 - Balance at December 31, 2021 $ 758,112 $ 719,663 $ 57,759 $ 675,486 $ 2,211,020 ACCUMULATED DEPLETION Balance at December 31, 2020 $ 191,842 $ - $ - $ 162,304 $ 354,146 Disposals - - - (4,319) (4,319) Depletion and depreciation 83,618 - - 65,221 148,839 Balance at December 31, 2021 $ 275,460 $ - $ - $ 223,206 $ 498,666 Net Book Value at December 31, 2021 $ 482,652 $ 719,663 $ 57,759 $ 452,280 $ 1,712,354 1 Included in additions to Construction in Progress is $47.1 million related to the Séguéla project previously classified as additions to Mineral Properties – Non-depletable. |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Assets [abstract] | |
Schedule of Other Assets | As at Note December 31, 2022 December 31, 2021 Ore stockpiles 6 $ 43,439 $ 20,398 Value added tax recoverable 3,642 3,426 Income tax recoverable 1,137 1,087 Other long-term assets 3,705 1,519 Total other non-current assets $ 51,923 $ 26,430 |
TRADE AND OTHER PAYABLES (Table
TRADE AND OTHER PAYABLES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
TRADE AND OTHER PAYABLES [abstract] | |
Schedule of Trade and Other Payables | As at Note December 31, 2022 December 31, 2021 Trade accounts payable $ 72,571 $ 82,533 Payroll and related payables 22,967 23,311 Mining royalty payable 2,476 2,416 Other payables 7,794 12,161 Derivative liabilities 270 3,077 Share units payable 16(a)(b)(c) 5,818 10,307 Total trade and other payables $ 111,896 $ 133,805 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
RELATED PARTY TRANSACTIONS [abstract] | |
Schedule of remuneration of key management personnel | Years ended December 31, 2022 2021 Salaries and benefits $ 11,532 $ 7,639 Directors fees 934 658 Consulting fees 69 78 Share-based payments 7,042 2,565 $ 19,577 $ 10,940 |
LEASE OBLIGATIONS (Tables)
LEASE OBLIGATIONS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
LEASE OBLIGATIONS | |
Schedule of Minimum Lease Payments | Minimum lease payments As at December 31, 2022 December 31, 2021 Less than one year $ 11,343 $ 12,292 Between one and five years 14,044 13,380 More than five years 5,806 15,983 31,193 41,655 Less: future finance charges (9,847) (12,250) Present value of minimum lease payments 21,346 29,405 Less: current portion (9,416) (10,523) Non-current portion $ 11,930 $ 18,882 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt [abstract] | |
Schedule of movement in debt | Credit Facility Convertible debentures Total Balance at December 31, 2020 $ 119,850 38,766 $ 158,616 Transaction costs (3,036) - (3,036) Acquisition of Roxgold 31,711 - 31,711 Amortization of discount 242 1,641 1,883 Extinguishment of debt 603 - 603 Payments (32,288) - (32,288) Balance at December 31, 2021 117,082 40,407 157,489 Convertible debenture conversion - (60) (60) Drawdown 80,000 - 80,000 Transaction costs (688) - (688) Amortization of discount 626 1,808 2,434 Payments (20,000) - (20,000) Balance at December 31, 2022 $ 177,020 $ 42,155 $ 219,175 |
OTHER LIABILITIES (Tables)
OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
OTHER LIABILITIES [abstract] | |
Summary of other liabilities | As at Note December 31, 2022 December 31, 2021 Restricted share units 16(b) $ 1,490 $ 1,437 Other non-current liabilities 1,106 1,873 Total other non-current liabilities $ 2,596 $ 3,310 |
CLOSURE AND RECLAMATION PROVI_2
CLOSURE AND RECLAMATION PROVISIONS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Closure and Reclamation Provisions [abstract] | |
Schedule of Reclamation and Closure Provisions | Closure and Reclamation Provisions Caylloma Mine San Jose Mine Lindero Mine Yaramoko Mine Séguéla Project Total Balance at December 31, 2021 $ 14,898 $ 7,128 $ 19,639 $ 12,895 $ 1,552 $ 56,112 Changes in estimate (1,235) (493) (8,666) 135 5,238 (5,021) Reclamation expenditures (503) (120) - - - (623) Accretion 796 682 541 345 - 2,364 Effect of changes in foreign exchange rates - 473 - - - 473 Balance at December 31, 2022 13,956 7,670 11,514 13,375 6,790 53,305 Less: Current portion (1,577) (600) - - - (2,177) Non-current portion $ 12,379 $ 7,070 $ 11,514 $ 13,375 $ 6,790 $ 51,128 Closure and Reclamation Provisions Caylloma Mine San Jose Mine Lindero Project Yaramoko Mine Séguéla Project Total Balance at December 31, 2020 $ 14,761 $ 5,905 $ 19,684 $ - $ - $ 40,350 Acquisition of Roxgold - - - 11,122 - 11,122 Changes in estimate (152) 1,142 (422) 1,609 1,552 3,729 Reclamation expenditures (180) (173) - - - (353) Accretion 469 439 377 164 - 1,449 Effect of changes in foreign exchange rates - (185) - - - (185) Balance at December 31, 2021 14,898 7,128 19,639 12,895 1,552 56,112 Less: Current portion (1,230) (652) - - - (1,882) Non-current portion $ 13,668 $ 6,476 $ 19,639 $ 12,895 $ 1,552 $ 54,230 |
Schedule of Estimates Used in Reclamation and Closure Provisions | Closure and Reclamation Provisions Caylloma Mine San Jose Mine Lindero Mine Yaramoko Mine Séguéla Project Total Undiscounted uninflated estimated cash flows $ 15,823 $ 8,413 $ 14,138 $ 14,113 $ 7,525 $ 60,012 Discount rate 5.88% 9.35% 4.14% 4.22% 3.88% Inflation rate 2.30% 7.13% 1.96% 3.67% 2.20% |
SHARE BASED PAYMENTS (Tables)
SHARE BASED PAYMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Schedule of Outstanding Stock Option Plan | Number of stock options Weighted average exercise price Canadian dollars Outstanding, December 31, 2020 1,054,570 $ 6.28 Exercised (68,927) 4.99 Assumed on acquisition 405,240 3.77 Expired unexercised (141,500) 3.22 Outstanding, December 31, 2021 1,249,383 5.88 Expired unexercised (612,565) 6.16 Outstanding, December 31, 2022 636,818 $ 5.62 Vested and exercisable, December 31, 2021 1,249,383 $ 5.88 Vested and exercisable, December 31, 2022 636,818 $ 5.62 |
Deferred Share Units [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Schedule of Outstanding and Fair Value of Other Units Activity | Cash Settled Number of DSUs Fair Value Outstanding, December 31, 2020 1,124,519 $ 9,239 Granted 55,245 347 Units paid out in cash (374,709) (3,436) Changes in fair value - (3,013) Outstanding, December 31, 2021 805,055 3,137 Granted 117,643 452 Changes in fair value - (121) Outstanding, December 31, 2022 922,698 $ 3,468 |
Restricted Share Units [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Schedule of Outstanding and Fair Value of Other Units Activity | Cash Settled Equity Settled Number of RSUs Fair Value Number of RSUs Outstanding, December 31, 2020 1,367,490 $ 5,392 1,533,366 Granted 677,250 4,111 - Units paid out in cash (618,357) (2,484) - Assumed on acquisition 328,254 1,590 1,091,395 Vested and paid out in shares - - (655,267) Transferred from equity to cash settled 260,444 - (260,444) Forfeited or cancelled (155,942) (54) (64,589) Changes in fair value and vesting - (3,052) - Outstanding, December 31, 2021 1,859,139 5,503 1,644,461 Granted 1,348,538 5,264 - Units paid out in cash (1,256,288) (5,737) - Vested and paid out in shares - - (665,305) Transferred from equity to cash settled 413,864 - (413,864) Transferred from cash to equity settled (155,674) - 155,674 Forfeited or cancelled (260,870) - (15,111) Changes in fair value and vesting - (1,190) - Outstanding, December 31, 2022 1,948,709 3,840 705,855 Less: current portion (2,350) Non-current portion $ 1,490 |
Performance Share Units [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Schedule of Outstanding and Fair Value of Other Units Activity | Cash Settled Equity Settled Number of PSUs Fair Value Number of PSUs Outstanding, December 31, 2020 - $ - 839,170 Assumed on acquisition 515,008 2,390 508,688 Granted - - 1,196,012 Forfeited or cancelled - - (206,798) Vested and paid out in shares - - (491,185) Changes in fair value and vesting - 714 - Outstanding, December 31, 2021 515,008 3,104 1,845,887 Granted - - 824,768 Forfeited or cancelled - - (434,007) Units paid out in cash (683,460) (3,882) - Transferred from equity to cash settled 168,452 - (168,452) Vested and paid out in shares - - (228,740) Change in fair value and vesting - 778 - Outstanding, December 31, 2022 - $ - 1,839,456 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings per Share [abstract] | |
Schedule of Earnings per Share | Years ended December 31, 2022 2021 Basic: Net (loss) income attributable to Fortuna shareholders $ (128,132) $ 57,877 Weighted average number of shares (000's) 291,281 237,998 (Loss) earnings per share - basic $ (0.44) $ 0.24 Years ended December 31, 2022 2021 Diluted: Net (loss) income attributable to Fortuna shareholders $ (128,132) $ 57,877 Add: finance costs on convertible debt, net of $nil tax - 3,779 Diluted net (loss) income for the period $ (128,132) $ 61,656 Weighted average number of shares (000's) 291,281 237,998 Incremental shares from dilutive potential shares - 11,445 Weighted average diluted number of shares (000's) 291,281 249,443 (Loss) earnings per share - diluted $ (0.44) $ 0.23 |
SALES (Tables)
SALES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SALES [abstract] | |
Schedule of Sales by Product and Geographical Area | Year ended December 31, 2022 Peru Mexico Argentina Burkina Faso Total Silver-gold concentrates $ - $ 173,871 $ - $ - $ 173,871 Silver-lead concentrates 50,300 - - - 50,300 Zinc concentrates 53,147 - - - 53,147 Gold doré - - 212,092 193,541 405,633 Provisional pricing adjustments (1,116) (344) - - (1,460) Sales to external customers $ 102,331 $ 173,527 $ 212,092 $ 193,541 $ 681,491 Year ended December 31, 2021 Peru Mexico Argentina Burkina Faso Total Silver-gold concentrates $ - $ 219,663 $ - $ - $ 219,663 Silver-lead concentrates 59,755 - - - 59,755 Zinc concentrates 42,990 - - - 42,990 Gold doré - - 178,999 101,256 280,255 Provisional pricing adjustments 799 (3,609) - - (2,810) Sales to external customers $ 103,544 $ 216,054 $ 178,999 $ 101,256 $ 599,853 |
Schedule of Sales by Major Customer | Years ended December 31, 2022 2021 Customer 1 $ 212,092 $ 178,999 Customer 2 193,541 101,256 Customer 3 102,332 103,544 Customer 4 76,851 28,860 Customer 5 70,584 91,950 Customer 6 26,091 47,212 Customer 7 - 48,032 $ 681,491 $ 599,853 |
COST OF SALES (Tables)
COST OF SALES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
COST OF SALES [abstract] | |
Schedule of Cost of Sales | Years ended December 31, 2022 2021 Direct mining costs $ 272,329 $ 198,141 Salaries and benefits 44,432 34,773 Workers' participation 4,285 7,647 Depletion and depreciation 171,447 121,077 Royalties and other taxes 33,304 25,703 Inventory net realizable value adjustments 8,898 7,035 Cost of Sales $ 534,695 $ 394,376 |
GENERAL AND ADMINISTRATION (Tab
GENERAL AND ADMINISTRATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
GENERAL AND ADMINISTRATION [abstract] | |
Schedule of General and Administrative Expenses | Years ended December 31, 2022 2021 General and administration $ 50,191 $ 39,386 Workers' participation 954 1,813 51,145 41,199 Share-based payments 10,311 4,161 General and Administration $ 61,456 $ 45,360 |
INTEREST AND FINANCE COSTS, N_2
INTEREST AND FINANCE COSTS, NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
INTEREST AND FINANCE COSTS, NET [Abstract] | |
Schedule of interest and finance (costs) income, net | Years ended December 31, 2022 2021 Interest income $ 1,851 $ 1,846 Interest expense (8,885) (10,246) Bank stand-by and commitment fees (193) (69) Accretion expense (2,364) (1,451) Lease Liabilities (2,466) (2,348) Loss on extinguishment of credit facility - (595) $ (12,057) $ (12,863) |
INCOME TAX (Tables)
INCOME TAX (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
INCOME TAX [abstract] | |
Schedule of Income Tax Reconciliation | Years ended December 31, 2022 2021 Net (loss) income before tax $ (125,109) $ 107,180 Statutory tax rate 27.0% 27.0% Anticipated income tax at statutory rates (33,779) 28,939 Non-deductible expenditures (deductible expenditures) (3,513) (5,535) Differences between Canadian and foreign tax rates 10,448 4,392 Changes in estimate (4,492) (93) Effect of change in tax rates — (1,919) Inflation adjustment (57,403) (24,873) Impact of foreign exchange 17,336 14,865 Change in deferred tax assets not recognized 70,178 18,692 Mining taxes 5,629 7,636 Withholding taxes 7,720 8,148 Other items (1,327) (2,471) Total income tax expense $ 10,797 $ 47,781 Total income tax represented by: Current income tax expense $ 35,783 $ 51,651 Deferred tax recovery (24,986) (3,870) $ 10,797 $ 47,781 (b) Tax Amounts Recognized in Profit or Loss |
Schedule of Current and Deferred Taxes | Years ended December 31, 2022 2021 Current tax expense Current taxes on profit for the year $ 35,884 $ 51,106 Changes in estimates related to prior years (101) 545 $ 35,783 $ 51,651 Deferred tax expense Origination and reversal of temporary differences and foreign exchange rate $ (20,826) $ (985) Changes in estimates related to prior years (4,392) (638) Effect of differences in tax rates 232 (328) Effect of changes in tax rates — (1,919) $ (24,986) $ (3,870) Total tax expense $ 10,797 $ 47,781 (c) Deferred Tax Balances |
Schedule of Deferred Tax Assets and Liabilities | December 31, December 31, 2022 2021 Deferred tax assets: Reclamation and closure cost obligation $ 14,942 $ 15,872 Carried forward tax loss 3,552 4,192 Equipment and buildings 11,976 23,989 Accounts payable and accrued liabilities 13,286 19,370 Deductibility of resource taxes 2,406 3,085 Lease obligations 8,374 8,270 Other 86 1,153 Total deferred tax assets $ 54,622 $ 75,931 Deferred tax liabilities: Mineral properties $ (202,087) $ (244,296) Mining and foreign withholding taxes (3,524) (4,523) Convertible debenture (831) (1,198) Inflation (4,306) (10,163) Inventory and other (11,493) (7,419) Total deferred tax liabilities $ (222,241) $ (267,599) Net deferred tax liabilities $ (167,619) $ (191,668) 2022 2022 Classification: Deferred tax assets $ - $ - Deferred tax liabilities (167,619) (191,668) Net deferred tax liabilities $ (167,619) $ (191,668) 2022 2021 At January 1 $ 191,668 $ 19,499 Deferred income tax (recovery) expense through income statement (24,831) (3,870) Deferred income tax expense through equity 782 176,039 At December 31 $ 167,619 $ 191,668 (d) Unrecognized Deferred Tax Assets and Liabilities |
Schedule of Unrecognized Deductible Temporary Difference and Unused Tax Losses | December 31, December 31, 2022 2021 Unrecognized deductible temporary differences and unused tax losses: Non-capital losses $ 164,427 $ 136,072 Provisions 7,215 11,657 Share issue costs 306 1,711 Mineral properties, plant and equipment 184,970 12,705 Lease obligation 578 863 Derivative liabilities 335 - Capital losses — 4,204 Investments in equity securities and associates 1,070 901 Unrecognized deductible temporary differences $ 358,901 $ 168,114 December 31, December 31, 2022 2021 Mexico $ 150,379 $ 204,283 Peru 78,505 59,976 West Africa 18,122 114,559 (e) Tax Loss Carry Forwards |
Schedule of Tax Losses Expiry Dates | December 31, December 31, Year of expiry 2022 Year of expiry 2021 Canada 2026 - 2042 $ 184,717 2026 - 2041 $ 150,015 Mexico 2021 - 2031 20 2021 - 2030 378 |
SEGMENTED INFORMATION (Tables)
SEGMENTED INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SEGMENTED INFORMATION [abstract] | |
Schedule of Segmented Information | Year ended December 31, 2022 Mansfield Sanu Sango Cuzcatlan Bateas Corporate Total Revenues from external customers $ 212,092 $ 193,541 $ - $ 173,527 $ 102,331 $ - $ 681,491 Cost of sales before depreciation and depletion (111,625) (106,953) - (91,312) (53,358) - (363,248) Depreciation and depletion in cost of sales (54,644) (64,893) - (37,776) (14,134) - (171,447) General and administration (8,698) (2,101) (366) (8,150) (4,478) (37,663) (61,456) Impairment of mineral properties, plant and equipment (70,156) (103,457) - (9,229) - - (182,842) Other (expenses) income (3,239) 2,570 (1,175) (5,026) (208) (8,972) (16,050) Finance items (1,695) (760) (360) (660) (1,167) (6,915) (11,557) Segment income (loss) before taxes (37,965) (82,053) (1,901) 21,374 28,986 (53,550) (125,109) Income taxes (3,529) 13,056 405 (4,855) (8,915) (6,959) (10,797) Segment income (loss) after taxes $ (41,494) $ (68,997) $ (1,496) $ 16,519 $ 20,071 $ (60,509) $ (135,906) Year ended December 31, 2021 Mansfield Sanu Sango Cuzcatlan Bateas Corporate Total Revenues from external customers $ 178,999 $ 101,256 $ - $ 216,054 $ 103,544 $ - $ 599,853 Cost of sales before depreciation and depletion (79,224) (51,839) - (90,499) (51,737) - (273,299) Depreciation and depletion in cost of sales (43,665) (28,973) - (32,257) (16,182) - (121,077) General and administration (5,793) (953) - (10,007) (4,127) (24,480) (45,360) Other (expenses) income (5,069) (2,536) (472) (15,793) 632 - (23,238) Finance items (972) (2,664) (96) (882) (5,034) (20,051) (29,699) Segment income (loss) before taxes 44,276 14,291 (568) 66,616 27,096 (44,531) 107,180 Income taxes (3,242) (2,749) (499) (23,586) (9,415) (8,290) (47,781) Segment income (loss) after taxes $ 41,034 $ 11,542 $ (1,067) $ 43,030 $ 17,681 $ (52,821) $ 59,399 As at December 31, 2022 Mansfield Sanu Sango Cuzcatlan Bateas Corporate Total Total assets $ 499,937 $ 182,621 $ 833,179 $ 187,898 $ 142,385 $ 30,204 $ 1,876,224 Total liabilities $ 44,152 $ 47,122 $ 173,082 $ 30,381 $ 49,143 $ 243,648 $ 587,528 Capital expenditures 1 $ 23,048 $ 54,137 $ 118,644 $ 24,397 $ 19,610 $ 2,047 $ 241,884 1 Capital expenditures are on an accrual basis for the year ended December 31, 2022 As at December 31, 2021 Mansfield Sanu Sango Cuzcatlan Bateas Corporate Total Total assets $ 613,584 $ 249,153 $ 760,220 $ 239,448 $ 128,012 $ 31,505 $ 2,021,922 Total liabilities $ 51,544 $ 67,229 $ 186,981 $ 48,094 $ 54,863 $ 183,641 $ 592,352 Capital expenditures 1 $ 40,845 $ 22,856 $ 56,614 $ 26,962 $ 24,848 $ - $ 172,125 1 Capital expenditures are on an accrual basis for the year ended December 31, 2021 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
FAIR VALUE MEASUREMENTS [abstract] | |
Schedule of Fair Value of Financial Instruments | Carrying value Fair value December 31, 2022 Fair Value through OCI Fair value through profit or loss Amortized cost Total Level 1 Level 2 Level 3 Carrying value approximates Fair Value Financial assets measured at Fair Value Investments in equity securities $ 78 $ - $ - $ 78 $ 78 $ - $ - $ - Trade receivables concentrate sales - 21,455 - 21,455 - 21,455 - - Metal forward sales contracts asset 18 18 18 - $ 78 $ 21,473 $ - $ 21,551 $ 78 $ 21,473 $ - $ - Financial assets not measured at Fair Value Cash and cash equivalents $ - $ - $ 80,493 $ 80,493 $ - $ - $ - $ 80,493 Trade receivables doré sales - - 2,522 2,522 - - - 2,522 Other receivables - - 7,443 7,443 - - - 7,443 $ - $ - $ 90,458 $ 90,458 $ - $ - $ - $ 90,458 Financial liabilities measured at Fair Value Foreign exchange forward contracts liability - (270) - (270) - (270) - - $ - $ (270) $ - $ (270) $ - $ (270) $ - $ - Financial liabilities not measured at Fair Value Trade payables $ - $ - $ (72,571) $ (72,571) $ - $ - $ - $ (72,571) Payroll payable - - (22,967) (22,967) - - - (22,967) Credit facilities - - (177,020) (177,020) - (180,000) - - Convertible debentures - - (42,155) (42,155) - (46,138) - - Other payables - - (31,519) (31,519) - - - (31,519) $ - $ - $ (346,232) $ (346,232) $ - $ (226,138) $ - $ (127,057) Carrying value Fair value December 31, 2021 Fair Value through OCI Fair value through profit or loss Amortized cost Total Level 1 Level 2 Level 3 Carrying value approximates Fair Value Financial assets measured at Fair Value Investments in equity securities $ 496 $ - $ - $ 496 $ 496 $ - $ - $ - Trade receivables concentrate sales - 23,298 - 23,298 - 23,298 - - Fuel hedge contracts asset - 1,619 - 1,619 - 1,619 - - $ 496 $ 24,917 $ - $ 25,413 $ 496 $ 24,917 $ - $ - Financial assets not measured at Fair Value Cash and cash equivalents $ - $ - $ 107,097 $ 107,097 $ - $ - $ - $ 107,097 Trade receivables doré sales - - 2,420 2,420 - - - 2,420 Other receivables - - 4,424 4,424 - - - 4,424 $ - $ - $ 113,941 $ 113,941 $ - $ - $ - $ 113,941 Financial liabilities measured at Fair Value Interest rate swap liability $ (78) $ - $ - $ (78) $ - $ (78) $ - $ - Metal forward sales contracts liability - (2,547) - (2,547) - (2,547) - - Fuel forward contracts liability - (508) - (508) - (508) - - $ (78) $ (3,055) $ - $ (3,133) $ - $ (3,133) $ - $ - Financial liabilities not measured at Fair Value Trade payables $ - $ - $ (80,925) $ (80,925) $ - $ - $ - $ (80,925) Payroll payable - - (23,311) (23,311) - - - (23,311) Credit facilities - - (117,082) (117,082) - (120,000) - - Convertible debentures - - (40,407) (40,407) - (50,614) - - Other payables - - (44,427) (44,427) - - - (44,427) $ - $ - $ (306,152) $ (306,152) $ - $ (170,614) $ - $ (148,663) |
MANAGEMENT OF FINANCIAL RISK (T
MANAGEMENT OF FINANCIAL RISK (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Schedule of Company's Maximum Exposure to Credit Risk | As at December 31, 2022 December 31, 2021 Cash and cash equivalents $ 80,493 $ 107,097 Derivative assets 19 1,490 Trade and other receivables 68,165 76,487 Income tax receivable 718 1,713 Other non-current receivables 8,484 6,032 $ 157,879 $ 192,819 |
Schedule of Company's Liquidity Risk | Expected payments due by year as at December 31, 2022 Less than After 1 year 1 - 3 years 4 - 5 years 5 years Total Trade and other payables $ 111,896 $ - $ - $ - $ 111,896 Debt - 225,940 - - 225,940 Income taxes payable 11,589 - - - 11,589 Lease obligations 11,343 8,308 5,736 5,806 31,193 Other liabilities - 2,596 - - 2,596 Capital commitments, Séguéla 13,923 380 - - 14,303 Closure and reclamation provisions 3,227 24,635 9,110 23,040 60,012 $ 151,978 $ 261,859 $ 14,846 $ 28,846 $ 457,529 Expected payments due by year as at December 31, 2021 Less than After 1 year 1 - 3 years 4 - 5 years 5 years Total Trade and other payables $ 133,805 $ - $ - $ - $ 133,805 Debt - 46,000 120,000 - 166,000 Income taxes payable 20,563 - - - 20,563 Lease obligations 12,292 11,315 2,065 15,983 41,655 Other liabilities - 3,310 - - 3,310 Capital commitments, Séguéla 66,542 5,217 - - 71,759 Closure and reclamation provisions 1,883 5,561 23,954 24,714 56,112 $ 235,085 $ 71,403 $ 146,019 $ 40,697 $ 493,204 (c) Currency risk |
Schedule of capital structure | December 31, 2022 December 31, 2021 Equity $ 1,244,756 $ 1,375,148 Debt 219,175 157,489 Lease obligations 21,346 29,405 Less: cash and cash equivalents (80,493) (107,097) $ 1,404,784 $ 1,454,945 |
Currency risk [member] | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Disclosure of Nature and Extent of Risks Arising from Foreign Exchange Currency Risk | December 31, 2022 Canadian Dollars Peruvian Soles Mexican Pesos Argentine Pesos West African CFA Franc Australian Dollars Euro Cash and cash equivalents 587 6,237 73,868 11,845 6,057,885 250 0 Marketable securities 105 - - - - - - Restricted cash - - - - 2,338,983 - - Trade and VAT receivables 215 3,317 73,868 2,062,918 12,979,116 (115) - Income tax receivable - 28,137 13,900 - - - - VAT - long term receivable - - 70,520 - - - - Trade and other payables (13,374) (16,966) (218,288) (1,429,416) (15,346,471) (1,285) (274) Provisions, current - (8,123) (11,729) (387,883) - - - Income tax payable 51 - (84,393) - (1,353,215) - - Other liabilities (177) - (9,708) - - - - Provisions, non-current - (12,611) (90,797) - - - - Total foreign currency exposure (12,592) (9) (182,759) 257,464 4,676,296 (1,151) (274) US$ equivalent of foreign currency exposure (9,297) (2) (9,439) 1,436 7,416 (1,099) (262) December 31, 2021 Canadian Dollars Peruvian Soles Mexican Pesos Argentine Pesos West African CFA Franc Australian Dollars Euro Cash and cash equivalents 1,660 5,508 18,126 4,319 11,494,909 5 28 Marketable securities 527 - - - - - - Restricted cash - - - - 1,166,963 - - Trade and VAT receivables 690 2,144 174,229 1,526,506 13,433,368 - - Income tax receivable - 20,707 - - - - - VAT - long term receivable - - 70,520 - - - - Trade and other payables (3,839) (17,496) (400,697) (1,174,033) (10,094,158) (939) (1,431) Provisions, current - (4,413) (13,534) (95,353) - - - Income tax payable - - (87,881) - - - - Other liabilities - - (6,178) - - - - Provisions, non-current - - (87,305) - - - - Total foreign currency exposure (962) 6,450 (332,719) 261,439 16,001,083 (933) (1,403) US$ equivalent of foreign currency exposure (755) 1,668 (16,802) 2,734 28,548 (671) (1,207) Sensitivity as to change in foreign currency exchange rates on our foreign currency exposure as at December 31, 2022 is provided below: Effect on foreign denominated Currency Change items Mexican pesos +/- 10% $ 858 Peruvian soles +/- 10% $ 0 Argentinian pesos +/- 10% $ 131 Canadian Dollar +/- 10% $ 845 West African CFA franc +/- 10% $ 674 Australian Dollar +/- 10% $ 152 Euro +/- 10% $ 24 |
Commodity price risk [member] | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Disclosure of Nature and Extent of Risks Arising from Financial Instruments | Metal Change Effect on Sales Silver +/- 10% $ 800 Gold +/- 10% $ 363 Lead +/- 10% $ 550 Zinc +/- 10% $ 186 |
SUPPLEMENTAL CASH FLOW INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Supplemental Cashflow Information [abstract] | |
Schedule of supplemental cash flow information | Years ended December 31, 2022 2021 Trade and other receivables $ 7,315 $ (16,897) Prepaid expenses (1,643) (2,149) Inventories (20,415) (23,824) Trade and other payables (3,278) 3,556 Total changes in working capital $ (18,021) $ (39,314) |
Schedule of Changes in Liabilities Arising from Financing Activities | Bank loan Convertible debentures Lease obligations As at December 31, 2020 $ 119,850 $ 38,766 $ 19,497 Additions - - 7,397 Terminations - - (1,203) Acquisition of Roxgold 31,711 - 13,597 Interest 845 1,641 2,336 Payments (32,288) - (11,928) Transaction costs (3,036) - - Foreign exchange - - (291) As at December 31, 2021 117,082 40,407 29,405 Loss on debt modifications - - (729) Additions 80,000 - 2,774 Terminations - - (661) Conversion of debenture - (60) - Interest 626 1,808 2,623 Payments (20,000) - (12,209) Transaction costs (688) - - Foreign exchange - - 143 As at December 31, 2022 $ 177,020 $ 42,155 $ 21,346 |
Schedule of significant non-cash financing and investing transactions | Years ended December 31, 2022 2021 Acquisition of Roxgold $ - $ 594,666 Mineral properties, plant and equipment changes in closure and reclamation provision $ 5,021 $ (3,729) Stock options allocated to share capital upon exercise $ - $ 136 Additions to right of use assets $ (2,774) $ (2,551) Share units allocated to share capital upon settlement $ 2,525 $ 4,468 |
NON-CONTROLLING INTEREST (Table
NON-CONTROLLING INTEREST (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Ifrs Non-Controlling Interest [Abstract] | |
Schedule of summarized statement information | Summarized statement of financial position As of December 31, 2022 Yaramoko Séguéla Non-controlling interest percentage 10% 10% Current assets $ 54,953 $ 6,536 Non-current assets 110,617 230,570 Current liabilities (23,338) (13,629) Non-current liabilities (99,921) (254,158) Net assets $ 42,311 $ (30,681) Non-controlling interest $ 2,309 $ 41,631 Summarized income statement For the period ended December 31, 2022 Yaramoko Séguéla Revenue $ 193,541 $ - Net income (loss) and comprehensive income (loss) $ 40,614 $ 6,964 Summarized cash flows For the period ended December 31, 2022 Yaramoko Séguéla Cash flows provided by operating activities $ 83,124 $ (710) Cash flows used in investing activities $ (53,449) $ (124,737) Cash flows (used in) provided by financing activities $ (32,309) $ 121,521 |
IMPAIRMENT (Tables)
IMPAIRMENT (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
IMPAIRMENT [abstract] | |
Schedule of impairment expense in cash generating units (CGUs) | Cash Generating Unit Carrying Value Recoverable Amount Impairment Expense Yaramoko $ 199,652 $ 96,195 $ 103,457 Lindero $ 525,336 $ 455,180 $ 70,156 San Jose $ 128,349 $ 119,121 $ 9,229 Total Impairment Expense $ 182,842 |
Schedule of discount rate for cash generating unit for impairment assessment | Cash Generating Unit Discount Rate Lindero 7.1% Yaramoko 7.9% San Jose 5.5% |
Schedule of metal prices assumptions used for impairment determination | Metal 2023 2024 2025 2026 2027 Long Term Gold (Per Once) $1,800 $1,800 $1,725 $1,725 $1,700 $1,650 Silver (Per Ounce) $22.00 $22.50 $22.00 $23.00 $23.00 $21.50 |
NATURE OF OPERATIONS (Details)
NATURE OF OPERATIONS (Details) | 12 Months Ended |
Dec. 31, 2022 | |
NATURE OF OPERATIONS [abstract] | |
Name of reporting entity or other means of identification | Fortuna Silver Mines Inc. |
Domicile of entity | British Columbia, Canada |
SIGNIFICANT ACCOUNTING POLICE_3
SIGNIFICANT ACCOUNTING POLICES (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Significant Accounting Policies [line items] | ||
Impairment loss | $ 182,842 | |
Right-of-use assets | $ 21,500 | $ 29,400 |
San Jose M&I Property [member] | ||
Disclosure Of Significant Accounting Policies [line items] | ||
Conversion factors related to inferred resources | 90% | |
Percentage of inferred resources | 31% | 35% |
Caylloma M&I Property [member] | ||
Disclosure Of Significant Accounting Policies [line items] | ||
Conversion factors related to inferred resources | 90% | |
Percentage of inferred resources | 41% | 31% |
Yaramoko Mine [member] | ||
Disclosure Of Significant Accounting Policies [line items] | ||
Conversion factors related to inferred resources | 100% | |
Percentage of inferred resources | 8% | 11% |
Restricted Share Units [member] | ||
Disclosure Of Significant Accounting Policies [line items] | ||
vesting period | 3 years | |
Performance Share Units [member] | ||
Disclosure Of Significant Accounting Policies [line items] | ||
vesting period | 3 years |
SIGNIFICANT ACCOUNTING POLICE_4
SIGNIFICANT ACCOUNTING POLICES (Disclosure of subsidiaries) (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Minera Bateas S.A.C. [member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | Minera Bateas S.A.C. ("Bateas") |
Principal place of business of subsidiary | Peru |
Proportion of ownership interest in subsidiary | 100% |
Principal activity of subsidiary | Caylloma Mine |
Compania Minera Cuzcatlan S.A. de C.V. [member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | Compania Minera Cuzcatlan S.A. de C.V. ("Cuzcatlan") |
Principal place of business of subsidiary | Mexico |
Proportion of ownership interest in subsidiary | 100% |
Principal activity of subsidiary | San Jose Mine |
Mansfield Minera S.A. [member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | Mansfield Minera S.A. ("Mansfield") |
Principal place of business of subsidiary | Argentina |
Proportion of ownership interest in subsidiary | 100% |
Principal activity of subsidiary | Lindero Mine |
Roxgold SANU S.A. ("Sanu") [Member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | Roxgold SANU S.A. (“Sanu”) |
Principal place of business of subsidiary | Burkina Faso |
Proportion of ownership interest in subsidiary | 90% |
Principal activity of subsidiary | Yaramoko Mine |
Roxgold SANGO S.A. ("Sango") [Member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | Roxgold SANGO S.A. (“Sango”) |
Principal place of business of subsidiary | Côte d’Ivoire |
Proportion of ownership interest in subsidiary | 90% |
Principal activity of subsidiary | Séguéla Project |
Roxgold Inc. [Member] | |
Disclosure of subsidiaries [line items] | |
Principal place of business of subsidiary | Canada |
Proportion of ownership interest in subsidiary | 100% |
Principal activity of subsidiary | Holding |
Description of functional currency | CAD |
FR Gold Mining Inc. [Member] | |
Disclosure of subsidiaries [line items] | |
Principal place of business of subsidiary | Canada |
Proportion of ownership interest in subsidiary | 100% |
Principal activity of subsidiary | Holding |
Description of functional currency | CAD |
Fortuna Silver Mines Australia Pty Ltd. [Member] | |
Disclosure of subsidiaries [line items] | |
Principal place of business of subsidiary | Australia |
Proportion of ownership interest in subsidiary | 100% |
Principal activity of subsidiary | Corporate |
Description of functional currency | AUD |
LGL Exploration Cte d'Ivoire SA [Member] | |
Disclosure of subsidiaries [line items] | |
Principal place of business of subsidiary | Côte d’Ivoire |
Proportion of ownership interest in subsidiary | 100% |
Principal activity of subsidiary | Exploration |
Description of functional currency | XOF |
LGL Resources Cte d'Ivoire SA [Member] | |
Disclosure of subsidiaries [line items] | |
Principal place of business of subsidiary | Côte d’Ivoire |
Proportion of ownership interest in subsidiary | 100% |
Principal activity of subsidiary | Exploration |
Description of functional currency | XOF |
SIGNIFICANT ACCOUNTING POLICE_5
SIGNIFICANT ACCOUNTING POLICES (Schedule related to property, plant and equipment) (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Land [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Measurement bases, property, plant and equipment | Not depreciated |
Buildings [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation method, property, plant and equipment | Straight line |
Buildings [member] | Bottom of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life measured as period of time, property, plant and equipment | 6 years |
Buildings [member] | Top of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life measured as period of time, property, plant and equipment | 10 years |
Mineral Properties [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Measurement bases, property, plant and equipment | Units of production |
Depreciation method, property, plant and equipment | Declining balance |
Buildings Located At Mine [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Measurement bases, property, plant and equipment | Units of production |
Depreciation method, property, plant and equipment | Declining balance |
Leasehold improvements [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation method, property, plant and equipment | Straight line |
Leasehold improvements [member] | Bottom of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life measured as period of time, property, plant and equipment | 4 years |
Leasehold improvements [member] | Top of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life measured as period of time, property, plant and equipment | 8 years |
Processing Plant [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Measurement bases, property, plant and equipment | Units of production |
Depreciation method, property, plant and equipment | Declining balance |
Machinery and Equipment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation method, property, plant and equipment | Straight line |
Machinery and Equipment [member] | Bottom of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life measured as period of time, property, plant and equipment | 3 years |
Machinery and Equipment [member] | Top of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life measured as period of time, property, plant and equipment | 12 years |
Furniture and other equipment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation method, property, plant and equipment | Straight line |
Furniture and other equipment [member] | Bottom of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life measured as period of time, property, plant and equipment | 2 years |
Furniture and other equipment [member] | Top of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life measured as period of time, property, plant and equipment | 12 years |
Transport units [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation method, property, plant and equipment | Straight line |
Transport units [member] | Bottom of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life measured as period of time, property, plant and equipment | 4 years |
Transport units [member] | Top of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life measured as period of time, property, plant and equipment | 5 years |
Capital Work in Progress [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Measurement bases, property, plant and equipment | Not depreciated |
USE OF ESTIMATES, ASSUMPTIONS_3
USE OF ESTIMATES, ASSUMPTIONS, AND JUDGEMENTS (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2022 $ / oz $ / T | |
Gold Commodity Type [member] | |
Disclosure Of Detailed Information About Use Of Judgements And Estimates Explanatory [line items] | |
Long term prices used for reserves and resource estimates related to commodity | $ / oz | 1,600 |
Silver Commodity Type [member] | |
Disclosure Of Detailed Information About Use Of Judgements And Estimates Explanatory [line items] | |
Long term prices used for reserves and resource estimates related to commodity | $ / oz | 21 |
Lead Commodity [member] | |
Disclosure Of Detailed Information About Use Of Judgements And Estimates Explanatory [line items] | |
Long term prices used for reserves and resource estimates related to commodity | $ / T | 2,100 |
Zinc Commodity [member] | |
Disclosure Of Detailed Information About Use Of Judgements And Estimates Explanatory [line items] | |
Long term prices used for reserves and resource estimates related to commodity | $ / T | 2,600 |
TRADE AND OTHER RECEIVABLES (Sc
TRADE AND OTHER RECEIVABLES (Schedule of Trade and Other Receivables) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of operating segments [line items] | ||
Trade receivables from concentrate sales | $ 23,977 | $ 25,718 |
Advances and other receivables | 7,443 | 4,424 |
Value added taxes recoverable | 36,745 | 46,345 |
Total accounts and other receivables | 68,165 | 76,487 |
Gains from securities trades | $ (16,050) | $ (23,238) |
TRADE AND OTHER RECEIVABLES (Na
TRADE AND OTHER RECEIVABLES (Narrative) (Details) $ in Millions | Dec. 31, 2021 USD ($) |
Scenario Statement [Line Items] | |
VAT receivables sold amount | $ 0.9 |
INVENTORIES (Schedule of Invent
INVENTORIES (Schedule of Inventories) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of operating segments [line items] | ||
Concentrate stockpiles | $ 2,161 | $ 1,711 |
Leach pad and gold-in-circuit | 31,649 | 30,321 |
Dore bars | 4,494 | 3,456 |
Ore stockpiles | 52,692 | 39,292 |
Materials and supplies | 44,476 | 31,437 |
Total Inventory | 135,472 | 106,217 |
Less: non-current portion | (43,439) | (20,398) |
Current inventories | 92,033 | 85,819 |
Cost of inventories recognised as expense during period | 481,500 | 346,400 |
Depreciation expense | 171,447 | 121,077 |
Lindero And Yaramoko Reporting Segment [Member] | ||
Disclosure of operating segments [line items] | ||
Inventories write down of materials and supplies to net realizable value | 8,900 | 7,000 |
Depreciation expense | $ 3,400 | $ 2,800 |
OTHER CURRENT ASSETS (Schedule
OTHER CURRENT ASSETS (Schedule related to other current assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
OTHER CURRENT ASSETS [abstract] | ||
Derivative assets | $ 19 | $ 1,490 |
Prepaid expenses | 11,180 | 8,060 |
Investments in equity securities | 78 | 416 |
Assets held for sale | 26 | |
Income tax receivable | 718 | 1,713 |
Other current assets | $ 12,021 | $ 11,679 |
MINERAL PROPERTIES AND PROPER_3
MINERAL PROPERTIES AND PROPERTY, PLANT AND EQUIPMENT (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Carrying value of right-of-use assets | $ 21.5 | $ 29.4 |
Depletion and depreciation, right-of-use | 9 | 6.3 |
Non Depletable [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Exploration and evaluation assets | 26.4 | 22 |
Property, plant and equipment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Depletion and depreciation, right-of-use | 9.5 | $ 7.2 |
Seguela Project [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Capitalized interest | $ 3.3 |
MINERAL PROPERTIES AND PROPER_4
MINERAL PROPERTIES AND PROPERTY, PLANT AND EQUIPMENT (Schedule Related to Property, Plant and Equipment) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
MINERAL PROPERTIES AND PROPERTY, PLANT AND EQUIPMENT | ||
Beginning Balance | $ 1,712,354 | |
Impairment loss | 182,842 | |
Ending Balance | 1,567,622 | $ 1,712,354 |
Net Book Value | 1,567,622 | 1,712,354 |
Gross carrying amount [member] | ||
MINERAL PROPERTIES AND PROPERTY, PLANT AND EQUIPMENT | ||
Beginning Balance | 2,211,020 | 1,145,273 |
Acquisiton of Roxgold | 895,536 | |
Additions | 241,884 | 172,125 |
Changes in closure and reclamation provision | (5,021) | 3,729 |
Disposals | (9,187) | (5,643) |
Ending Balance | 2,438,696 | 2,211,020 |
Accumulated depreciation, amortisation and impairment [member] | ||
MINERAL PROPERTIES AND PROPERTY, PLANT AND EQUIPMENT | ||
Beginning Balance | (498,666) | (354,146) |
Disposals | 1,970 | 4,319 |
Impairment loss | 182,842 | |
Depletion and depreciation | 191,537 | 148,839 |
Ending Balance | (871,075) | (498,666) |
Mineral Properties [member] | Depletable [member] | ||
MINERAL PROPERTIES AND PROPERTY, PLANT AND EQUIPMENT | ||
Net Book Value | 360,731 | 482,652 |
Mineral Properties [member] | Depletable [member] | Gross carrying amount [member] | ||
MINERAL PROPERTIES AND PROPERTY, PLANT AND EQUIPMENT | ||
Beginning Balance | 758,112 | 327,414 |
Acquisiton of Roxgold | 112,499 | |
Additions | 74,301 | 54,882 |
Changes in closure and reclamation provision | (10,024) | 2,262 |
Disposals | (372) | |
Transfers | 44,982 | 261,055 |
Ending Balance | 866,999 | 758,112 |
Mineral Properties [member] | Depletable [member] | Accumulated depreciation, amortisation and impairment [member] | ||
MINERAL PROPERTIES AND PROPERTY, PLANT AND EQUIPMENT | ||
Beginning Balance | (275,460) | (191,842) |
Impairment loss | 117,237 | |
Depletion and depreciation | 113,571 | 83,618 |
Ending Balance | (506,268) | (275,460) |
Mineral Properties [member] | Non Depletable [member] | ||
MINERAL PROPERTIES AND PROPERTY, PLANT AND EQUIPMENT | ||
Net Book Value | 712,269 | 719,663 |
Mineral Properties [member] | Non Depletable [member] | Gross carrying amount [member] | ||
MINERAL PROPERTIES AND PROPERTY, PLANT AND EQUIPMENT | ||
Beginning Balance | 719,663 | 250,145 |
Acquisiton of Roxgold | 697,537 | |
Additions | 35,468 | 12,467 |
Changes in closure and reclamation provision | 5,238 | 1,552 |
Disposals | (5,502) | |
Transfers | (42,598) | (242,038) |
Ending Balance | 712,269 | 719,663 |
Seguela Project related to Construction in Progress [Member] | ||
MINERAL PROPERTIES AND PROPERTY, PLANT AND EQUIPMENT | ||
Additions | 47,100 | |
Capital Work in Progress [member] | ||
MINERAL PROPERTIES AND PROPERTY, PLANT AND EQUIPMENT | ||
Net Book Value | 154,647 | 57,759 |
Capital Work in Progress [member] | Gross carrying amount [member] | ||
MINERAL PROPERTIES AND PROPERTY, PLANT AND EQUIPMENT | ||
Beginning Balance | 57,759 | 188,960 |
Acquisiton of Roxgold | 15,047 | |
Additions | 117,860 | 81,343 |
Transfers | (20,972) | (227,591) |
Ending Balance | 154,647 | 57,759 |
Property, plant & Equipment [member] | ||
MINERAL PROPERTIES AND PROPERTY, PLANT AND EQUIPMENT | ||
Net Book Value | 339,975 | 452,280 |
Property, plant & Equipment [member] | Gross carrying amount [member] | ||
MINERAL PROPERTIES AND PROPERTY, PLANT AND EQUIPMENT | ||
Beginning Balance | 675,486 | 378,754 |
Acquisiton of Roxgold | 70,453 | |
Additions | 14,255 | 23,433 |
Changes in closure and reclamation provision | (235) | (85) |
Disposals | (3,313) | (5,643) |
Transfers | 18,588 | 208,574 |
Ending Balance | 704,781 | 675,486 |
Property, plant & Equipment [member] | Accumulated depreciation, amortisation and impairment [member] | ||
MINERAL PROPERTIES AND PROPERTY, PLANT AND EQUIPMENT | ||
Beginning Balance | (223,206) | (162,304) |
Disposals | 1,970 | 4,319 |
Impairment loss | 65,605 | |
Depletion and depreciation | 77,966 | 65,221 |
Ending Balance | $ (364,807) | $ (223,206) |
OTHER ASSETS (Schedule of other
OTHER ASSETS (Schedule of other assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Ore stockpiles | $ 43,439 | $ 20,398 |
Value added tax recoverable | 3,642 | 3,426 |
Income tax recoverable | 1,137 | 1,087 |
Other long-term assets | 3,705 | 1,519 |
Total other non-current assets | $ 51,923 | $ 26,430 |
TRADE AND OTHER PAYABLES (Sched
TRADE AND OTHER PAYABLES (Schedule of Trade and Other Payables) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
TRADE AND OTHER PAYABLES [abstract] | ||
Trade accounts payable | $ 72,571 | $ 82,533 |
Payroll payable | 22,967 | 23,311 |
Mining royalty payable | 2,476 | 2,416 |
Other payables | 7,794 | 12,161 |
Derivative liability | 270 | 3,077 |
Deferred share units payable (note 20(a)) | 5,818 | 10,307 |
Total trade and other payables | $ 111,896 | $ 133,805 |
RELATED PARTY TRANSACTIONS (Nar
RELATED PARTY TRANSACTIONS (Narrative) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
Disclosure of transactions between related parties [line items] | |
Purchase of goods and service related party transactions | $ 5 |
RELATED PARTY TRANSACTIONS (Sch
RELATED PARTY TRANSACTIONS (Schedule of Related Party) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of transactions between related parties [line items] | ||
Salaries and benefits | $ 11,532 | $ 7,639 |
Directors fees | 934 | 658 |
Consulting fees | 69 | 78 |
Share-based payments | 7,042 | 2,565 |
Key management personnel compensation | $ 19,577 | $ 10,940 |
LEASE OBLIGATIONS (Schedule of
LEASE OBLIGATIONS (Schedule of Lease Obligations) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of quantitative information about right-of-use assets [line items] | ||
Operating leases | $ 31,193 | $ 41,655 |
Less: future finance charges | (9,847) | (12,250) |
Present value of minimum lease payments | 21,346 | 29,405 |
Less current portion | (9,416) | (10,523) |
Non-current portion | 11,930 | 18,882 |
Not later than one year [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Operating leases | 11,343 | 12,292 |
Later than one year and not later than five years [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Operating leases | 14,044 | 13,380 |
Later than five years [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Operating leases | $ 5,806 | $ 15,983 |
DEBT - Movement in debt (Detail
DEBT - Movement in debt (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of detailed information about borrowings [line items] | ||
Beginning Balance | $ 157,489 | $ 158,616 |
Transaction costs | (688) | (3,036) |
Acquisition of Roxgold | 31,711 | |
Amortization of discount | 2,434 | 1,883 |
Extinguishment of debt | 603 | |
Convertible debenture conversion | (60) | |
Drawdowns | 80,000 | |
Payments | (20,000) | (32,288) |
Ending Balance | 219,175 | 157,489 |
Non-current portion | 219,175 | 157,489 |
Term Credit Facility [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Beginning Balance | 117,082 | 119,850 |
Transaction costs | (688) | (3,036) |
Acquisition of Roxgold | 31,711 | |
Amortization of discount | 626 | 242 |
Extinguishment of debt | 603 | |
Drawdowns | 80,000 | |
Payments | (20,000) | (32,288) |
Ending Balance | 177,020 | 117,082 |
Convertible debentures [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Beginning Balance | 40,407 | 38,766 |
Amortization of discount | 1,808 | 1,641 |
Convertible debenture conversion | (60) | |
Ending Balance | $ 42,155 | $ 40,407 |
DEBT - Credit Facilities (Detai
DEBT - Credit Facilities (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 15, 2022 USD ($) | Nov. 04, 2021 USD ($) | Dec. 31, 2021 USD ($) | Dec. 14, 2022 USD ($) | Nov. 05, 2021 USD ($) | |
Disclosure of detailed information about borrowings [line items] | |||||
Loss on extinguishment of debt facility | $ 595 | ||||
Bottom of range [member] | London Interbank Offered Rate Libor [Member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Borrowings, interest rate basis | two | ||||
Top of range [member] | London Interbank Offered Rate Libor [Member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Borrowings, interest rate basis | three | ||||
Amended Credit Facility [Member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt term | 4 years | ||||
Borrowing capacity | $ 250,000 | $ 120,000 | $ 200,000 | $ 200,000 | |
Amended Credit Facility [Member] | After Three Years [Member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Borrowing capacity | $ 150,000 | ||||
Amended Stepped Down Credit Facility [Member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Borrowing capacity | 175,000 | $ 150,000 | |||
Accordion Option [Member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Borrowings | $ 50,000 | ||||
Accordion Option [Member] | Ifrs Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Applicable loan margins increased | 0.25 | ||||
Accordion Option [Member] | Bottom of range [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Borrowings increase in commitment fees interest rate | 0.09 | ||||
Accordion Option [Member] | Top of range [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Borrowings increase in commitment fees interest rate | 0.12 |
DEBT - Convertible Debentures (
DEBT - Convertible Debentures (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 USD ($) D $ / shares | Dec. 31, 2021 USD ($) | Oct. 06, 2019 USD ($) | Oct. 02, 2019 USD ($) | |
Disclosure of detailed information about borrowings [line items] | ||||
Deferred income tax expense through equity | $ (782) | $ (176,039) | ||
Transaction costs | $ 688 | $ 3,036 | ||
Convertible debentures [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Notional amount | $ 46,000 | $ 46,000 | ||
Borrowings, interest rate | 4.65% | 4.65% | ||
Conversion price | $ / shares | $ 5 | |||
Conversion rate | 200 | |||
Consecutive trading days | D | 20 | |||
Redemption percentage of conversion price | 125% | |||
Percentage of principal amount of debt redeemed | 95% | |||
Interest paid on debentures | $ 2,100 |
OTHER LIABILITIES (Schedule of
OTHER LIABILITIES (Schedule of Other Liabilities) (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
OTHER LIABILITIES [abstract] | ||
Restricted share units | $ 1,490,000 | $ 1,437,000 |
Other non-current liabilities | 1,106,000 | 1,873,000 |
Total other non-current liabilities | $ 2,596,000 | $ 3,310,000 |
CLOSURE AND RECLAMATION PROVI_3
CLOSURE AND RECLAMATION PROVISIONS (Schedule of Closure and Rehabilitation Provisions) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of other provisions [line items] | ||
Less: Current portion | $ (2,177) | $ (1,882) |
Non-current portion | 51,128 | 54,230 |
Provision for decommissioning, restoration and rehabilitation costs [member] | ||
Disclosure of other provisions [line items] | ||
Balance at beginning | 56,112 | 40,350 |
Acquisition of Roxgold | 11,122 | |
Changes in estimate | (5,021) | 3,729 |
Reclamation expenditures | (623) | (353) |
Accretion | 2,364 | 1,449 |
Effect of changes in foreign exchange rates | 473 | (185) |
Balance at ending | 53,305 | 56,112 |
Less: Current portion | (2,177) | (1,882) |
Non-current portion | 51,128 | 54,230 |
Caylloma M&I Property [member] | Provision for decommissioning, restoration and rehabilitation costs [member] | ||
Disclosure of other provisions [line items] | ||
Balance at beginning | 14,898 | 14,761 |
Changes in estimate | (1,235) | (152) |
Reclamation expenditures | (503) | (180) |
Accretion | 796 | 469 |
Balance at ending | 13,956 | 14,898 |
Less: Current portion | (1,577) | (1,230) |
Non-current portion | 12,379 | 13,668 |
San Jose M&I Property [member] | Provision for decommissioning, restoration and rehabilitation costs [member] | ||
Disclosure of other provisions [line items] | ||
Balance at beginning | 7,128 | 5,905 |
Changes in estimate | (493) | 1,142 |
Reclamation expenditures | (120) | (173) |
Accretion | 682 | 439 |
Effect of changes in foreign exchange rates | 473 | (185) |
Balance at ending | 7,670 | 7,128 |
Less: Current portion | (600) | (652) |
Non-current portion | 7,070 | 6,476 |
Lindero Project [member] | Provision for decommissioning, restoration and rehabilitation costs [member] | ||
Disclosure of other provisions [line items] | ||
Balance at beginning | 19,639 | 19,684 |
Changes in estimate | (8,666) | (422) |
Accretion | 541 | 377 |
Balance at ending | 11,514 | 19,639 |
Non-current portion | 11,514 | 19,639 |
Yaramoko Mine [member] | Provision for decommissioning, restoration and rehabilitation costs [member] | ||
Disclosure of other provisions [line items] | ||
Balance at beginning | 12,895 | |
Acquisition of Roxgold | 11,122 | |
Changes in estimate | 135 | 1,609 |
Accretion | 345 | 164 |
Balance at ending | 13,375 | 12,895 |
Non-current portion | 13,375 | 12,895 |
Seguela Project [Member] | Provision for decommissioning, restoration and rehabilitation costs [member] | ||
Disclosure of other provisions [line items] | ||
Balance at beginning | 1,552 | |
Changes in estimate | 5,238 | 1,552 |
Balance at ending | 6,790 | 1,552 |
Non-current portion | $ 6,790 | $ 1,552 |
CLOSURE AND RECLAMATION PROVI_4
CLOSURE AND RECLAMATION PROVISIONS (Schedule of Estimates Used in Closure and Rehabilitation Provisions) (Details) - Provision for decommissioning, restoration and rehabilitation costs [member] $ in Thousands | Dec. 31, 2022 USD ($) |
Disclosure of other provisions [line items] | |
Undiscounted estimated cash flow | $ 60,012 |
Caylloma M&I Property [member] | |
Disclosure of other provisions [line items] | |
Undiscounted estimated cash flow | $ 15,823 |
Discount rate | 5.88% |
Inflation rate | 2.30% |
San Jose M&I Property [member] | |
Disclosure of other provisions [line items] | |
Undiscounted estimated cash flow | $ 8,413 |
Discount rate | 9.35% |
Inflation rate | 7.13% |
Lindero Project [member] | |
Disclosure of other provisions [line items] | |
Undiscounted estimated cash flow | $ 14,138 |
Discount rate | 4.14% |
Inflation rate | 1.96% |
Yaramoko Mine [member] | |
Disclosure of other provisions [line items] | |
Undiscounted estimated cash flow | $ 14,113 |
Discount rate | 4.22% |
Inflation rate | 3.67% |
Seguela Project [Member] | |
Disclosure of other provisions [line items] | |
Undiscounted estimated cash flow | $ 7,525 |
Discount rate | 3.88% |
Inflation rate | 2.20% |
SHARE BASED PAYMENTS (Narrative
SHARE BASED PAYMENTS (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Expense from share-based payment transactions with employees | $ 10,311 | $ 4,161 |
Stock options available for issuance | 2,441,061 | |
Deferred, Restricted and Performance Share Units | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Expense from share-based payment transactions with employees | $ 10,200 | $ 3,800 |
Stock Options | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Expense from share-based payment transactions with employees | $ 100 | |
Top of range [member] | Stock Options | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Maximum issue of shares permitted | 12,200,000 |
SHARE BASED PAYMENTS (Schedule
SHARE BASED PAYMENTS (Schedule of Outstanding Units Activity) (Details) | 12 Months Ended | |
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Deferred Share Units [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Outstanding, other than options, beginning | 805,055 | 1,124,519 |
Granted, other units | 117,643 | 55,245 |
Units paid out in cash, other units | (374,709) | |
Outstanding, other than options, ending | 922,698 | 805,055 |
Outstanding, beginning balance, fair value | $ 3,137,000 | $ 9,239,000 |
Fair Value, granted, other units | 452,000 | 347,000 |
Fair Value, Paid in Cash, other units | (3,436,000) | |
Fair value, Change in fair value, other units | (121,000) | (3,013,000) |
Outstanding, ending balance, fair value | $ 3,468,000 | $ 3,137,000 |
Cash Settled, Restricted Share Units [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Outstanding, other than options, beginning | 1,859,139 | 1,367,490 |
Granted, other units | 1,348,538 | 677,250 |
Forfeited or cancelled, other units | (260,870) | (155,942) |
Units paid out in cash, other units | (1,256,288) | (618,357) |
Assumed on acquisition, other units | 328,254 | |
Transferred from equity to cash settled, other units | 413,864 | 260,444 |
Transferred from cash to equity settled | (155,674) | |
Outstanding, other than options, ending | 1,948,709 | 1,859,139 |
Outstanding, beginning balance, fair value | $ 5,503,000 | $ 5,392,000 |
Fair Value, granted, other units | 5,264,000 | 4,111,000 |
Fair value, forfeited or cancelled, other units | (54,000) | |
Fair Value, Paid in Cash, other units | (5,737,000) | (2,484,000) |
Fair value, Assumed on acquisition | 1,590,000 | |
Fair value, Change in fair value, other units | (1,190,000) | (3,052,000) |
Outstanding, ending balance, fair value | 3,840,000 | $ 5,503,000 |
Less: current portion | (2,350,000) | |
Non-current portion | $ 1,490,000 | |
Equity Settled, Restricted Share Units [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Outstanding, other than options, beginning | 1,644,461 | 1,533,366 |
Forfeited or cancelled, other units | (15,111) | (64,589) |
Units paid out in cash, other units | (665,305) | (655,267) |
Assumed on acquisition, other units | 1,091,395 | |
Transferred from equity to cash settled, other units | (413,864) | (260,444) |
Transferred from cash to equity settled | 155,674 | |
Outstanding, other than options, ending | 705,855 | 1,644,461 |
Cash Settled, Performance Share Units [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Outstanding, other than options, beginning | 515,008 | |
Units paid out in cash, other units | (683,460) | |
Assumed on acquisition, other units | 515,008 | |
Transferred from equity to cash settled, other units | 168,452 | |
Outstanding, other than options, ending | 515,008 | |
Outstanding, beginning balance, fair value | $ 3,104,000 | |
Fair Value, Paid in Cash, other units | (3,882,000) | |
Fair value, Assumed on acquisition | $ 2,390,000 | |
Fair value, Change in fair value, other units | $ 778,000 | 714,000 |
Outstanding, ending balance, fair value | $ 3,104,000 | |
Equity Settled, Performance Share Units [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Outstanding, other than options, beginning | 1,845,887 | 839,170 |
Granted, other units | 1,196,012 | |
Units paid out in cash, other units | (491,185) | |
Assumed on acquisition, other units | 508,688 | |
Outstanding, other than options, ending | 1,845,887 | |
Fair Value, granted, other units | $ 824,768 | |
Fair value, forfeited or cancelled, other units | (434,007) | $ (206,798) |
Fair Value, Paid in Cash, other units | (228,740) | |
Fair value, Transferred from equity to cash settled | (168,452) | |
Outstanding, ending balance, fair value | $ 1,839,456 |
SHARE BASED PAYMENTS (Schedul_2
SHARE BASED PAYMENTS (Schedule of Outstanding Option Activity) (Details) - Stock Options | 12 Months Ended | |
Dec. 31, 2022 USD ($) $ / shares | Dec. 31, 2021 USD ($) $ / shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Outstanding, Options at beginning of period | $ | 1,249,383 | 1,054,570 |
Exercised, options | $ | (68,927) | |
Assumed on acquisition, options | $ | 405,240 | |
Expired unexercised, options | $ | (612,565) | (141,500) |
Outstanding, Options, at end of period | $ | 636,818 | 1,249,383 |
Vested and exercisable, at end of period | $ | 636,818 | 1,249,383 |
Outstanding, options, Weighted average exercise price, beginning | $ / shares | $ 5.88 | $ 6.28 |
Exercised, options, Weighted average exercise price | $ / shares | 4.99 | |
Assumed on acquisition, Weighted average exercise price | $ / shares | 3.77 | |
Expired unexercised, Weighted average exercise price | $ / shares | 6.16 | 3.22 |
Outstanding, options, Weighted average exercise price, ending | $ / shares | 5.62 | 5.88 |
Vested and exercisable, options, Weighted average exercise price | $ / shares | $ 5.62 | $ 5.88 |
SHARE CAPITAL (Details)
SHARE CAPITAL (Details) - USD ($) $ / shares in Units, $ in Thousands | 8 Months Ended | 12 Months Ended | |
May 02, 2022 | Dec. 31, 2022 | Dec. 31, 2022 | |
Share Capital [abstract] | |||
Explanation of fact that shares have no par value | The Company has an unlimited number of common shares without par value authorized for issue. | ||
Percentage of share repurchase program | 5% | ||
Repurchase of common shares acquired and cancelled | 2,201,404 | ||
Average cost | $ 2.69 | ||
Total cost | $ 5,900 | $ 5,929 |
EARNINGS PER SHARE (Schedule of
EARNINGS PER SHARE (Schedule of Earnings per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings per Share [abstract] | ||
Net (loss) income attributable to Fortuna shareholders | $ (128,132) | $ 57,877 |
Add: finance costs on convertible debt, net of $nil tax | $ 3,779 | |
Weighted average number of shares ('000's) | 291,281 | 237,998 |
(Loss) earnings per share - basic | $ (0.44) | $ 0.24 |
Diluted net (loss) income for the period | $ (128,132) | $ 61,656 |
Incremental shares from dilutive potential shares | 11,445 | |
Weighted average diluted number of shares (000's) | 291,281 | 249,443 |
(Loss) earnings per share - diluted | $ (0.44) | $ 0.23 |
EARNINGS PER SHARE (Narrative)
EARNINGS PER SHARE (Narrative) (Details) | 12 Months Ended | |
Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) shares | |
Disclosure of Earnings Per Share [line items] | ||
Antidilutive effect of convertible instruments on number Of ordinary shares | shares | 9,176,000 | 0 |
Antidilutive securities excluded from computation of EPS | 2,380,857 | 0 |
Stock Options [Member] | ||
Disclosure of Earnings Per Share [line items] | ||
Antidilutive securities excluded from computation of EPS | 509,468 | 7,551 |
SALES (Schedule of Sales by Pro
SALES (Schedule of Sales by Product and Geographical Area) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of geographical areas [line items] | ||
Sales to external customers | $ 681,491 | $ 599,853 |
Silver Gold Concentrates [member] | ||
Disclosure of geographical areas [line items] | ||
Sales to external customers | 173,871 | 219,663 |
Silver Lead Concentrates [member] | ||
Disclosure of geographical areas [line items] | ||
Sales to external customers | 50,300 | 59,755 |
Zinc Concentrates [member] | ||
Disclosure of geographical areas [line items] | ||
Sales to external customers | 53,147 | 42,990 |
Gold Dore | ||
Disclosure of geographical areas [line items] | ||
Sales to external customers | 405,633 | 280,255 |
Provisional pricing adjustments | ||
Disclosure of geographical areas [line items] | ||
Sales to external customers | (1,460) | (2,810) |
PERU | ||
Disclosure of geographical areas [line items] | ||
Sales to external customers | 102,331 | 103,544 |
PERU | Silver Lead Concentrates [member] | ||
Disclosure of geographical areas [line items] | ||
Sales to external customers | 50,300 | 59,755 |
PERU | Zinc Concentrates [member] | ||
Disclosure of geographical areas [line items] | ||
Sales to external customers | 53,147 | 42,990 |
PERU | Provisional pricing adjustments | ||
Disclosure of geographical areas [line items] | ||
Sales to external customers | (1,116) | |
Provisional pricing adjustment | 799 | |
MEXICO | ||
Disclosure of geographical areas [line items] | ||
Sales to external customers | 173,527 | 216,054 |
MEXICO | Silver Gold Concentrates [member] | ||
Disclosure of geographical areas [line items] | ||
Sales to external customers | 173,871 | 219,663 |
MEXICO | Provisional pricing adjustments | ||
Disclosure of geographical areas [line items] | ||
Sales to external customers | (344) | (3,609) |
ARGENTINA | ||
Disclosure of geographical areas [line items] | ||
Sales to external customers | 212,092 | 178,999 |
ARGENTINA | Gold Dore | ||
Disclosure of geographical areas [line items] | ||
Sales to external customers | 212,092 | 178,999 |
BURKINA FASO | ||
Disclosure of geographical areas [line items] | ||
Sales to external customers | 193,541 | 101,256 |
BURKINA FASO | Gold Dore | ||
Disclosure of geographical areas [line items] | ||
Sales to external customers | $ 193,541 | $ 101,256 |
SALES (Schedule of Sales by Maj
SALES (Schedule of Sales by Major Customer) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of major customers [line items] | ||
Revenue | $ 681,491 | $ 599,853 |
Customer One [member] | ||
Disclosure of major customers [line items] | ||
Revenue | 212,092 | 178,999 |
Customer Two [member] | ||
Disclosure of major customers [line items] | ||
Revenue | 193,541 | 101,256 |
Customer Three [member] | ||
Disclosure of major customers [line items] | ||
Revenue | 102,332 | 103,544 |
Customer Four [member] | ||
Disclosure of major customers [line items] | ||
Revenue | 76,851 | 28,860 |
Customer Five [Member] | ||
Disclosure of major customers [line items] | ||
Revenue | 70,584 | 91,950 |
Customer Six [Member] | ||
Disclosure of major customers [line items] | ||
Revenue | $ 26,091 | 47,212 |
Customer Seven [Member] | ||
Disclosure of major customers [line items] | ||
Revenue | $ 48,032 |
SALES (Mitigating Price Risk) (
SALES (Mitigating Price Risk) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of major customers [line items] | ||
Realized loss | $ 700 | $ 1,500 |
Unrealized loss | $ 1,200 | $ 1,300 |
COST OF SALES (Schedule of Cost
COST OF SALES (Schedule of Cost of Sales) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Direct mining costs | $ 272,329 | $ 198,141 |
Salaries and benefits | 44,432 | 34,773 |
Workers' Participation | 4,285 | 7,647 |
Depletion and depreciation | 171,447 | 121,077 |
Royalties | 33,304 | 25,703 |
Inventory net realizable value adjustments | 8,898 | 7,035 |
Cost of sales | 534,695 | 394,376 |
Depletion and depreciation, right-of-use | $ 9,000 | $ 6,300 |
GENERAL AND ADMINISTRATION (Sch
GENERAL AND ADMINISTRATION (Schedule of General And Administrative Expenses) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
GENERAL AND ADMINISTRATION [abstract] | ||
General and administration | $ 50,191 | $ 39,386 |
Workers' participation | 954 | 1,813 |
General and administrative subtotal | 51,145 | 41,199 |
Share-based payments | 10,311 | 4,161 |
Total general and administrative expense | $ 61,456 | $ 45,360 |
INTEREST AND FINANCE COSTS, N_3
INTEREST AND FINANCE COSTS, NET (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of other provisions [line items] | ||
Interest income | $ 1,851 | $ 1,846 |
Interest expense | (8,885) | (10,246) |
Bank stand-by and commitment fees | (193) | (69) |
Accretion expense | (2,364) | (1,451) |
Lease Liabilities | (2,466) | (2,348) |
Loss on extinguishment of credit facility | (595) | |
Interest and finance (costs) income, net | $ (12,057) | $ (12,863) |
INCOME TAX (Narrative) (Details
INCOME TAX (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Taxes [line items] | ||
Applicable tax rate | 27% | 27% |
CANADA | ||
Income Taxes [line items] | ||
Resource related expense accumulated with no deferred tax benefit recognized | $ 8 | $ 8.5 |
INCOME TAX (Schedule of Income
INCOME TAX (Schedule of Income Tax Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
INCOME TAX [abstract] | ||
Net income before tax | $ (125,109) | $ 107,180 |
Statutory tax rate | 27% | 27% |
Anticipated income tax at statutory rates | $ (33,779) | $ 28,939 |
Non-deductible expenditures (deductible expenditures) | (3,513) | (5,535) |
Differences between Canadian and foreign tax rates | 10,448 | 4,392 |
Change in estimate | (4,492) | (93) |
Effect of change in tax rates | (1,919) | |
Inflation adjustment | (57,403) | (24,873) |
Impact of foreign exchange | 17,336 | 14,865 |
Changes in deferred tax assets not recognized | 70,178 | 18,692 |
Mining taxes | 5,629 | 7,636 |
Withholding taxes | 7,720 | 8,148 |
Other items | (1,327) | (2,471) |
Total tax expense | 10,797 | 47,781 |
Current income tax expense | 35,783 | 51,651 |
Deferred income tax recovery | $ (24,986) | $ (3,870) |
INCOME TAX (Schedule of Current
INCOME TAX (Schedule of Current and Deferred Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
INCOME TAX [abstract] | ||
Current taxes on profit for the year | $ 35,884 | $ 51,106 |
Changes in estimates related to prior years | (101) | 545 |
Total current tax expense (income) and adjustments for current tax of prior periods | 35,783 | 51,651 |
Origination and reversal of temporary differences and foreign exchange rate | (20,826) | (985) |
Changes in estimates related to prior years | (4,392) | (638) |
Effect of differences in tax rates | 232 | (328) |
Effect of changes in tax rates | (1,919) | |
Deferred tax expense (income) | (24,986) | (3,870) |
Total tax expense | $ 10,797 | $ 47,781 |
INCOME TAX (Schedule of Deferre
INCOME TAX (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | $ 54,622 | $ 75,931 |
Deferred tax liabilities | (222,241) | (267,599) |
Net deferred tax liabilities | (167,619) | (191,668) |
Net deferred tax liabilities | (167,619) | (191,668) |
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Beginning balance | 191,668 | 19,499 |
Deferred income tax (recovery) expense through income statement | (24,831) | (3,870) |
Deferred income tax expense through equity | 782 | 176,039 |
Ending balance | 167,619 | 191,668 |
Reclamation and closure cost obligation [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 14,942 | 15,872 |
Carried forward tax loss [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 3,552 | 4,192 |
Accounts payable and accrued liability [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 13,286 | 19,370 |
Deductibility of resource taxes [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 2,406 | 3,085 |
Lease obligations [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 8,374 | 8,270 |
Other deferred tax assets [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 86 | 1,153 |
Mineral Properties [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax liabilities | (202,087) | (244,296) |
Mining and foreign withholding taxes [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax liabilities | (3,524) | (4,523) |
Equipment and Building [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 11,976 | 23,989 |
Convertible Debentures [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax liabilities | (831) | (1,198) |
Inflation [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax liabilities | (4,306) | (10,163) |
Other deferred tax liabilities [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax liabilities | $ (11,493) | $ (7,419) |
INCOME TAX (Schedule of Unrecog
INCOME TAX (Schedule of Unrecognized Deductible Temporary Difference and Unused Tax Losses) (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Income Taxes [line items] | ||
Non capital losses | $ 164,427,000 | $ 136,072,000 |
Provision | 7,215,000 | 11,657,000 |
Share issue costs | 306,000 | 1,711,000 |
Mineral properties, plant and equipment | 184,970,000 | 12,705,000 |
Lease obligation | 578,000 | 863,000 |
Derivative liabilities | 335,000 | |
Capital losses | 4,204,000 | |
Investments in subsidiaries | 1,070,000 | 901,000 |
Unrecognized deductible temporary differences | 358,901,000 | 168,114,000 |
MEXICO | ||
Income Taxes [line items] | ||
Non capital losses | 20,000 | 378,000 |
Investments in subsidiaries | 150,379,000 | 204,283,000 |
PERU | ||
Income Taxes [line items] | ||
Investments in subsidiaries | 78,505,000 | 59,976,000 |
WEST AFRICA | ||
Income Taxes [line items] | ||
Investments in subsidiaries | $ 18,122,000 | $ 114,559,000 |
INCOME TAX (Schedule of Tax Los
INCOME TAX (Schedule of Tax Losses Expiry Dates) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Taxes [line items] | ||
Unused tax losses for which no deferred tax asset recognised | $ 164,427 | $ 136,072 |
CANADA | ||
Income Taxes [line items] | ||
Unused tax losses for which no deferred tax asset recognised | $ 184,717 | $ 150,015 |
CANADA | Bottom of range [member] | ||
Income Taxes [line items] | ||
Year of Expiry | 2026 | 2026 |
CANADA | Top of range [member] | ||
Income Taxes [line items] | ||
Year of Expiry | 2042 | 2041 |
MEXICO | ||
Income Taxes [line items] | ||
Unused tax losses for which no deferred tax asset recognised | $ 20 | $ 378 |
MEXICO | Bottom of range [member] | ||
Income Taxes [line items] | ||
Year of Expiry | 2021 | 2021 |
MEXICO | Top of range [member] | ||
Income Taxes [line items] | ||
Year of Expiry | 2031 | 2030 |
SEGMENTED INFORMATION (Schedule
SEGMENTED INFORMATION (Schedule of Segmented Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of operating segments [line items] | ||
Cost of sales | $ 534,695 | $ 394,376 |
Sales to external customers | 681,491 | 599,853 |
Cost of sales before depreciation and depletion | (363,248) | (273,299) |
Depreciation and depletion in cost of sales | (171,447) | (121,077) |
Selling, general and administration | (61,456) | (45,360) |
Impairment of mineral properties, plant, and equipment | (182,842) | |
Other income (expenses) | (16,050) | (23,238) |
Finance items | (11,557) | (29,699) |
(Loss) income before income taxes | (125,109) | 107,180 |
Total tax expense | (10,797) | (47,781) |
Net (loss) income for the year | (135,906) | 59,399 |
Assets | 1,876,224 | 2,021,922 |
Liabilities | 587,528 | 592,352 |
Capital Expenditure | 241,884 | 172,125 |
Mansfield Reporting [Member] | Material reconciling items [member] | ||
Disclosure of operating segments [line items] | ||
Sales to external customers | 212,092 | 178,999 |
Cost of sales before depreciation and depletion | (111,625) | (79,224) |
Depreciation and depletion in cost of sales | (54,644) | (43,665) |
Selling, general and administration | (8,698) | (5,793) |
Impairment of mineral properties, plant, and equipment | (70,156) | |
Other income (expenses) | (3,239) | (5,069) |
Finance items | (1,695) | (972) |
(Loss) income before income taxes | (37,965) | 44,276 |
Total tax expense | (3,529) | (3,242) |
Net (loss) income for the year | (41,494) | 41,034 |
Assets | 499,937 | 613,584 |
Liabilities | 44,152 | 51,544 |
Capital Expenditure | 23,048 | 40,845 |
SANU Report Segment [Member] | Material reconciling items [member] | ||
Disclosure of operating segments [line items] | ||
Sales to external customers | 193,541 | 101,256 |
Cost of sales before depreciation and depletion | (106,953) | (51,839) |
Depreciation and depletion in cost of sales | (64,893) | (28,973) |
Selling, general and administration | (2,101) | (953) |
Impairment of mineral properties, plant, and equipment | (103,457) | |
Other income (expenses) | 2,570 | (2,536) |
Finance items | (760) | (2,664) |
(Loss) income before income taxes | (82,053) | 14,291 |
Total tax expense | 13,056 | (2,749) |
Net (loss) income for the year | (68,997) | 11,542 |
Assets | 182,621 | 249,153 |
Liabilities | 47,122 | 67,229 |
Capital Expenditure | 54,137 | 22,856 |
SANGO Reporting Segment [Member] | Material reconciling items [member] | ||
Disclosure of operating segments [line items] | ||
Selling, general and administration | (366) | |
Other income (expenses) | (1,175) | (472) |
Finance items | (360) | (96) |
(Loss) income before income taxes | (1,901) | (568) |
Total tax expense | 405 | (499) |
Net (loss) income for the year | (1,496) | (1,067) |
Assets | 833,179 | 760,220 |
Liabilities | 173,082 | 186,981 |
Capital Expenditure | 118,644 | 56,614 |
Cuzcatlan Reporting Segment [member] | Material reconciling items [member] | ||
Disclosure of operating segments [line items] | ||
Sales to external customers | 173,527 | 216,054 |
Cost of sales before depreciation and depletion | (91,312) | (90,499) |
Depreciation and depletion in cost of sales | (37,776) | (32,257) |
Selling, general and administration | (8,150) | (10,007) |
Impairment of mineral properties, plant, and equipment | (9,229) | |
Other income (expenses) | (5,026) | (15,793) |
Finance items | (660) | (882) |
(Loss) income before income taxes | 21,374 | 66,616 |
Total tax expense | (4,855) | (23,586) |
Net (loss) income for the year | 16,519 | 43,030 |
Assets | 187,898 | 239,448 |
Liabilities | 30,381 | 48,094 |
Capital Expenditure | 24,397 | 26,962 |
Bateas Reporting Segment [member] | Material reconciling items [member] | ||
Disclosure of operating segments [line items] | ||
Sales to external customers | 102,331 | 103,544 |
Cost of sales before depreciation and depletion | (53,358) | (51,737) |
Depreciation and depletion in cost of sales | (14,134) | (16,182) |
Selling, general and administration | (4,478) | (4,127) |
Other income (expenses) | (208) | 632 |
Finance items | (1,167) | (5,034) |
(Loss) income before income taxes | 28,986 | 27,096 |
Total tax expense | (8,915) | (9,415) |
Net (loss) income for the year | 20,071 | 17,681 |
Assets | 142,385 | 128,012 |
Liabilities | 49,143 | 54,863 |
Capital Expenditure | 19,610 | 24,848 |
Corporate Segment [Member] | Material reconciling items [member] | ||
Disclosure of operating segments [line items] | ||
Selling, general and administration | (37,663) | (24,480) |
Other income (expenses) | (8,972) | |
Finance items | (6,915) | (20,051) |
(Loss) income before income taxes | (53,550) | (44,531) |
Total tax expense | (6,959) | (8,290) |
Net (loss) income for the year | (60,509) | (52,821) |
Assets | 30,204 | 31,505 |
Liabilities | 243,648 | $ 183,641 |
Capital Expenditure | $ 2,047 |
FAIR VALUE MEASUREMENTS (Schedu
FAIR VALUE MEASUREMENTS (Schedule of Fair Value of Financial Instruments) (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure Of Fair Value Measurement Of Assets And Liabilities [line items] | ||
Assets | $ 1,876,224,000 | $ 2,021,922,000 |
Liabilities | 587,528,000 | 592,352,000 |
Financial liabilities | (457,529,000) | (493,204,000) |
At fair value [member] | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [line items] | ||
Financial assets | 21,551,000 | |
Financial assets, at fair value | 25,413,000 | |
Financial liabilities, at fair value | (270,000) | |
At fair value [member] | Fair value hedges [member] | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [line items] | ||
Financial assets | 78,000 | 496,000 |
At fair value [member] | Financial liabilities at fair value through profit or loss, category [member] | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [line items] | ||
Financial liabilities, at fair value | (3,133,000) | |
At fair value [member] | Financial liabilities at fair value through profit or loss, category [member] | Fair value hedges [member] | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [line items] | ||
Financial liabilities | (78,000) | |
At fair value [member] | Financial assets at fair value through profit or loss, category [member] | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [line items] | ||
Financial assets | 21,473,000 | 24,917,000 |
Financial liabilities, at fair value | (270,000) | |
At fair value [member] | Financial assets at fair value through profit or loss, category [member] | Financial liabilities at fair value through profit or loss, category [member] | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [line items] | ||
Financial liabilities | (3,055,000) | |
At fair value [member] | Level 1 of fair value hierarchy [member] | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [line items] | ||
Financial assets, at fair value | 78,000 | 496,000 |
At fair value [member] | Level 2 of fair value hierarchy [member] | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [line items] | ||
Financial assets, at fair value | 21,473,000 | 24,917,000 |
Financial liabilities, at fair value | (270,000) | |
At fair value [member] | Level 2 of fair value hierarchy [member] | Financial liabilities at fair value through profit or loss, category [member] | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [line items] | ||
Financial liabilities, at fair value | (3,133,000) | |
At fair value [member] | Interest rate swap liability [Member] | Financial liabilities at fair value through profit or loss, category [member] | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [line items] | ||
Financial liabilities, at fair value | (78,000) | |
At fair value [member] | Interest rate swap liability [Member] | Financial liabilities at fair value through profit or loss, category [member] | Fair value hedges [member] | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [line items] | ||
Financial liabilities | (78,000) | |
At fair value [member] | Interest rate swap liability [Member] | Level 2 of fair value hierarchy [member] | Financial liabilities at fair value through profit or loss, category [member] | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [line items] | ||
Financial liabilities, at fair value | (78,000) | |
At fair value [member] | Metal Forward Sales Contracts [member] | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [line items] | ||
Financial liabilities, at fair value | (2,547,000) | |
At fair value [member] | Metal Forward Sales Contracts [member] | Financial assets at fair value through profit or loss, category [member] | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [line items] | ||
Financial liabilities | (2,547,000) | |
At fair value [member] | Metal Forward Sales Contracts [member] | Level 2 of fair value hierarchy [member] | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [line items] | ||
Financial liabilities, at fair value | (2,547,000) | |
At fair value [member] | Fuel Forward Contracts Liability [Member] | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [line items] | ||
Financial liabilities, at fair value | (270,000) | (508,000) |
At fair value [member] | Fuel Forward Contracts Liability [Member] | Financial assets at fair value through profit or loss, category [member] | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [line items] | ||
Financial liabilities | (508,000) | |
Financial liabilities, at fair value | (270,000) | |
At fair value [member] | Fuel Forward Contracts Liability [Member] | Level 2 of fair value hierarchy [member] | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [line items] | ||
Financial liabilities, at fair value | (270,000) | (508,000) |
At fair value [member] | Investments in Equity Securities [Member] | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [line items] | ||
Financial assets | 78,000 | |
Financial assets, at fair value | 496,000 | |
At fair value [member] | Investments in Equity Securities [Member] | Fair value hedges [member] | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [line items] | ||
Financial assets | 78,000 | 496,000 |
At fair value [member] | Investments in Equity Securities [Member] | Level 1 of fair value hierarchy [member] | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [line items] | ||
Financial assets, at fair value | 78,000 | 496,000 |
At fair value [member] | Trade Receivables Concentrate Sales [member] | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [line items] | ||
Financial assets | 21,455,000 | |
Financial assets, at fair value | 23,298,000 | |
At fair value [member] | Trade Receivables Concentrate Sales [member] | Financial assets at fair value through profit or loss, category [member] | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [line items] | ||
Financial assets | 21,455,000 | |
Financial assets, at fair value | 23,298,000 | |
At fair value [member] | Trade Receivables Concentrate Sales [member] | Level 2 of fair value hierarchy [member] | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [line items] | ||
Financial assets, at fair value | 21,455,000 | 23,298,000 |
At fair value [member] | Fuel Hedge Contracts Assets [Member] | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [line items] | ||
Financial assets, at fair value | 1,619,000 | |
At fair value [member] | Fuel Hedge Contracts Assets [Member] | Financial assets at fair value through profit or loss, category [member] | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [line items] | ||
Financial assets | 1,619,000 | |
At fair value [member] | Fuel Hedge Contracts Assets [Member] | Level 2 of fair value hierarchy [member] | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [line items] | ||
Financial assets, at fair value | 1,619,000 | |
At fair value [member] | Metal forward sales contract [member] | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [line items] | ||
Financial assets | 18,000 | |
At fair value [member] | Metal forward sales contract [member] | Financial assets at fair value through profit or loss, category [member] | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [line items] | ||
Financial assets | 18,000 | |
At fair value [member] | Metal forward sales contract [member] | Level 2 of fair value hierarchy [member] | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [line items] | ||
Financial assets, at fair value | 18,000 | |
Not measured at fair value in statement of financial position but for which fair value is disclosed [member] | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [line items] | ||
Assets | 90,458,000 | 113,941,000 |
Liabilities | 346,232,000 | 306,152,000 |
Financial assets | 113,941,000 | |
Financial assets, at fair value | 90,458,000 | |
Financial liabilities | (127,057,000) | (148,663,000) |
Not measured at fair value in statement of financial position but for which fair value is disclosed [member] | Financial assets at amortised cost, category [member] | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [line items] | ||
Financial assets | 90,458,000 | 113,941,000 |
Not measured at fair value in statement of financial position but for which fair value is disclosed [member] | Financial assets at amortised cost, category [member] | Other Liability [member] | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [line items] | ||
Financial liabilities | (346,232,000) | (306,152,000) |
Not measured at fair value in statement of financial position but for which fair value is disclosed [member] | Level 2 of fair value hierarchy [member] | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [line items] | ||
Liabilities | 226,138,000 | |
Financial liabilities, at fair value | (170,614,000) | |
Not measured at fair value in statement of financial position but for which fair value is disclosed [member] | Trade Payables [member] | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [line items] | ||
Liabilities | 72,571,000 | 80,925,000 |
Financial liabilities | (72,571,000) | (80,925,000) |
Not measured at fair value in statement of financial position but for which fair value is disclosed [member] | Trade Payables [member] | Financial assets at amortised cost, category [member] | Other Liability [member] | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [line items] | ||
Financial liabilities | (72,571,000) | (80,925,000) |
Not measured at fair value in statement of financial position but for which fair value is disclosed [member] | Payroll Payable [member] | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [line items] | ||
Liabilities | 22,967,000 | 23,311,000 |
Financial liabilities | (22,967,000) | (23,311,000) |
Not measured at fair value in statement of financial position but for which fair value is disclosed [member] | Payroll Payable [member] | Financial assets at amortised cost, category [member] | Other Liability [member] | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [line items] | ||
Financial liabilities | (22,967,000) | (23,311,000) |
Not measured at fair value in statement of financial position but for which fair value is disclosed [member] | Credit Facilities [Member] | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [line items] | ||
Liabilities | 177,020,000 | 117,082,000 |
Not measured at fair value in statement of financial position but for which fair value is disclosed [member] | Credit Facilities [Member] | Financial assets at amortised cost, category [member] | Other Liability [member] | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [line items] | ||
Financial liabilities | (177,020,000) | (117,082,000) |
Not measured at fair value in statement of financial position but for which fair value is disclosed [member] | Credit Facilities [Member] | Level 2 of fair value hierarchy [member] | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [line items] | ||
Liabilities | 180,000,000 | |
Financial liabilities, at fair value | (120,000,000) | |
Not measured at fair value in statement of financial position but for which fair value is disclosed [member] | Convertible Debentures [member] | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [line items] | ||
Liabilities | 40,407,000 | |
Financial liabilities | (42,155,000) | |
Not measured at fair value in statement of financial position but for which fair value is disclosed [member] | Convertible Debentures [member] | Financial assets at amortised cost, category [member] | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [line items] | ||
Financial liabilities, at fair value | (40,407,000) | |
Not measured at fair value in statement of financial position but for which fair value is disclosed [member] | Convertible Debentures [member] | Financial assets at amortised cost, category [member] | Other Liability [member] | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [line items] | ||
Financial liabilities | (42,155,000) | |
Not measured at fair value in statement of financial position but for which fair value is disclosed [member] | Convertible Debentures [member] | Level 2 of fair value hierarchy [member] | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [line items] | ||
Financial liabilities | (46,138,000) | |
Financial liabilities, at fair value | (50,614,000) | |
Not measured at fair value in statement of financial position but for which fair value is disclosed [member] | Other Payables [member] | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [line items] | ||
Liabilities | 31,519,000 | 44,427,000 |
Financial liabilities | (31,519,000) | (44,427,000) |
Not measured at fair value in statement of financial position but for which fair value is disclosed [member] | Other Payables [member] | Financial assets at amortised cost, category [member] | Other Liability [member] | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [line items] | ||
Financial liabilities | (31,519,000) | (44,427,000) |
Not measured at fair value in statement of financial position but for which fair value is disclosed [member] | Cash and Cash Equivalents [member] | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [line items] | ||
Assets | 80,493,000 | 107,097,000 |
Financial assets | 107,097,000 | |
Financial assets, at fair value | 80,493,000 | |
Not measured at fair value in statement of financial position but for which fair value is disclosed [member] | Cash and Cash Equivalents [member] | Financial assets at amortised cost, category [member] | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [line items] | ||
Financial assets | 80,493,000 | 107,097,000 |
Not measured at fair value in statement of financial position but for which fair value is disclosed [member] | Trade Receivables Dor Sales Assets [Member] | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [line items] | ||
Financial assets | 2,522,000 | 2,420,000 |
Financial assets, at fair value | 2,420,000 | |
Not measured at fair value in statement of financial position but for which fair value is disclosed [member] | Trade Receivables Dor Sales Assets [Member] | Financial assets at amortised cost, category [member] | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [line items] | ||
Financial assets | 2,522,000 | 2,420,000 |
Not measured at fair value in statement of financial position but for which fair value is disclosed [member] | Other Receivables [member] | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [line items] | ||
Assets | 7,443,000 | 4,424,000 |
Financial assets | 4,424,000 | |
Financial assets, at fair value | 7,443,000 | |
Not measured at fair value in statement of financial position but for which fair value is disclosed [member] | Other Receivables [member] | Financial assets at amortised cost, category [member] | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [line items] | ||
Financial assets | $ 7,443,000 | $ 4,424,000 |
MANAGEMENT OF FINANCIAL RISK (S
MANAGEMENT OF FINANCIAL RISK (Schedule of Company's Maximum Exposure to Credit Risk) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Cash and cash equivalents | $ 80,493 | $ 107,097 | $ 131,898 |
Marketable securities | 26 | ||
Accounts receivable and other assets | 68,165 | 76,487 | |
Other non-current receivables | 51,923 | 26,430 | |
Credit risk [member] | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Cash and cash equivalents | 80,493 | 107,097 | |
Derivative assets | 19 | 1,490 | |
Accounts receivable and other assets | 68,165 | 76,487 | |
Income tax receivable | 718 | 1,713 | |
Other non-current receivables | 8,484 | 6,032 | |
Total financial assets | $ 157,879 | $ 192,819 |
MANAGEMENT OF FINANCIAL RISK _2
MANAGEMENT OF FINANCIAL RISK (Schedule of Company's Liquidity Risk) (Details) - USD ($) | Nov. 04, 2021 | Dec. 31, 2022 | Dec. 15, 2022 | Dec. 14, 2022 | Dec. 31, 2021 | Nov. 05, 2021 | Dec. 31, 2020 |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||
Trade and other payables | $ 111,896,000 | $ 133,805,000 | |||||
Debt | 225,940,000 | 166,000,000 | |||||
Income tax payable | 11,589,000 | 20,563,000 | |||||
Lease obligations | 31,193,000 | 41,655,000 | |||||
Other non-current liabilities | 2,596,000 | 3,310,000 | |||||
Cash and cash equivalents | 80,493,000 | 107,097,000 | $ 131,898,000 | ||||
Operating leases | 31,193,000 | 41,655,000 | |||||
Capital commitments | 14,303,000 | 71,759,000 | |||||
Provisions | 60,012,000 | 56,112,000 | |||||
Total financial liabilities | 457,529,000 | 493,204,000 | |||||
Not later than one year [member] | |||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||
Trade and other payables | 111,896,000 | 133,805,000 | |||||
Income tax payable | 11,589,000 | 20,563,000 | |||||
Lease obligations | 11,343,000 | 12,292,000 | |||||
Operating leases | 11,343,000 | 12,292,000 | |||||
Capital commitments | 13,923,000 | 66,542,000 | |||||
Provisions | 3,227,000 | 1,883,000 | |||||
Total financial liabilities | 151,978,000 | 235,085,000 | |||||
Later than one year and not later than five years [member] | |||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||
Operating leases | 14,044,000 | 13,380,000 | |||||
Later than one year and not later than three years [member] | |||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||
Debt | 225,940,000 | 46,000,000 | |||||
Lease obligations | 8,308,000 | 11,315,000 | |||||
Other non-current liabilities | 2,596,000 | 3,310,000 | |||||
Capital commitments | 380,000 | 5,217,000 | |||||
Provisions | 24,635,000 | 5,561,000 | |||||
Total financial liabilities | 261,859,000 | 71,403,000 | |||||
Later than three years and not later than five years [member] | |||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||
Debt | 120,000,000 | ||||||
Lease obligations | 5,736,000 | 2,065,000 | |||||
Provisions | 9,110,000 | 23,954,000 | |||||
Total financial liabilities | 14,846,000 | 146,019,000 | |||||
Later than five years [member] | |||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||
Lease obligations | 5,806,000 | 15,983,000 | |||||
Operating leases | 5,806,000 | 15,983,000 | |||||
Provisions | 23,040,000 | 24,714,000 | |||||
Total financial liabilities | $ 28,846,000 | $ 40,697,000 | |||||
Amended Credit Facility [Member] | |||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||
Borrowing capacity | $ 120,000,000 | $ 250,000,000 | $ 200,000,000 | $ 200,000,000 | |||
Debt term | 4 years | ||||||
Amended Credit Facility [Member] | After Three Years [Member] | |||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||
Borrowing capacity | $ 150,000,000 |
MANAGEMENT OF FINANCIAL RISK (D
MANAGEMENT OF FINANCIAL RISK (Disclosure of Nature and Extent Arising from Financial Instruments - Currency Risk) (Details) $ in Thousands | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2022 CAD ($) | Dec. 31, 2022 PEN (S/) | Dec. 31, 2022 MXN ($) | Dec. 31, 2022 ARS ($) | Dec. 31, 2022 XAF | Dec. 31, 2022 AUD ($) | Dec. 31, 2022 EUR (€) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 CAD ($) | Dec. 31, 2022 PEN (S/) | Dec. 31, 2022 MXN ($) | Dec. 31, 2022 ARS ($) | Dec. 31, 2022 XAF | Dec. 31, 2022 AUD ($) | Dec. 31, 2022 EUR (€) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 CAD ($) | Dec. 31, 2021 PEN (S/) | Dec. 31, 2021 MXN ($) | Dec. 31, 2021 ARS ($) | Dec. 31, 2021 XAF | Dec. 31, 2021 AUD ($) | Dec. 31, 2021 EUR (€) | |
CANADA | |||||||||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||||||||||||||||||
Effect of Foreign denominated items | $ 845,000 | ||||||||||||||||||||||
Change percentage, currency | 10% | 10% | 10% | 10% | 10% | 10% | 10% | ||||||||||||||||
CANADA | Currency risk [member] | |||||||||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||||||||||||||||||
Foreign exposure on asset (liabilities), net | $ (9,297) | $ (12,592,000) | $ (755) | $ (962,000) | |||||||||||||||||||
CANADA | Currency risk [member] | Cash and Cash Equivalent [member] | |||||||||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||||||||||||||||||
Foreign exposure on asset (liabilities), net | 587,000 | 1,660,000 | |||||||||||||||||||||
CANADA | Currency risk [member] | Marketable Securities [member] | |||||||||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||||||||||||||||||
Foreign exposure on asset (liabilities), net | 105,000 | 527,000 | |||||||||||||||||||||
CANADA | Currency risk [member] | Trade and Value Added Tax Long Term Receivable [Member] | |||||||||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||||||||||||||||||
Foreign exposure on asset (liabilities), net | 215,000 | 690,000 | |||||||||||||||||||||
CANADA | Currency risk [member] | Trade and Other Payables [member] | |||||||||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||||||||||||||||||
Foreign exposure on asset (liabilities), net | (13,374,000) | $ (3,839,000) | |||||||||||||||||||||
CANADA | Currency risk [member] | Income Tax Payable [member] | |||||||||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||||||||||||||||||
Foreign exposure on asset (liabilities), net | 51,000 | ||||||||||||||||||||||
CANADA | Currency risk [member] | Other Liabilities [member] | |||||||||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||||||||||||||||||
Foreign exposure on asset (liabilities), net | $ (177,000) | ||||||||||||||||||||||
PERU | |||||||||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||||||||||||||||||
Effect of Foreign denominated items | S/ | S/ 0 | ||||||||||||||||||||||
Change percentage, currency | 10% | 10% | 10% | 10% | 10% | 10% | 10% | ||||||||||||||||
PERU | Currency risk [member] | |||||||||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||||||||||||||||||
Foreign exposure on asset (liabilities), net | (2) | S/ (9,000) | 1,668 | S/ 6,450,000 | |||||||||||||||||||
PERU | Currency risk [member] | Cash and Cash Equivalent [member] | |||||||||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||||||||||||||||||
Foreign exposure on asset (liabilities), net | S/ | 6,237,000 | 5,508,000 | |||||||||||||||||||||
PERU | Currency risk [member] | Trade and Value Added Tax Long Term Receivable [Member] | |||||||||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||||||||||||||||||
Foreign exposure on asset (liabilities), net | S/ | 3,317,000 | 2,144,000 | |||||||||||||||||||||
PERU | Currency risk [member] | Income Tax Receivable [member] | |||||||||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||||||||||||||||||
Foreign exposure on asset (liabilities), net | S/ | 28,137,000 | 20,707,000 | |||||||||||||||||||||
PERU | Currency risk [member] | Trade and Other Payables [member] | |||||||||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||||||||||||||||||
Foreign exposure on asset (liabilities), net | S/ | (16,966,000) | (17,496,000) | |||||||||||||||||||||
PERU | Currency risk [member] | Provisions Current [member] | |||||||||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||||||||||||||||||
Foreign exposure on asset (liabilities), net | S/ | (8,123,000) | S/ (4,413,000) | |||||||||||||||||||||
PERU | Currency risk [member] | Provisions Noncurrent [member] | |||||||||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||||||||||||||||||
Foreign exposure on asset (liabilities), net | S/ | S/ (12,611,000) | ||||||||||||||||||||||
MEXICO | |||||||||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||||||||||||||||||
Effect of Foreign denominated items | $ 858,000 | ||||||||||||||||||||||
Change percentage, currency | 10% | 10% | 10% | 10% | 10% | 10% | 10% | ||||||||||||||||
MEXICO | Currency risk [member] | |||||||||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||||||||||||||||||
Foreign exposure on asset (liabilities), net | (9,439) | $ (182,759,000) | (16,802) | $ (332,719,000) | |||||||||||||||||||
MEXICO | Currency risk [member] | Cash and Cash Equivalent [member] | |||||||||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||||||||||||||||||
Foreign exposure on asset (liabilities), net | 73,868,000 | 18,126,000 | |||||||||||||||||||||
MEXICO | Currency risk [member] | Trade and Value Added Tax Long Term Receivable [Member] | |||||||||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||||||||||||||||||
Foreign exposure on asset (liabilities), net | 73,868,000 | 174,229,000 | |||||||||||||||||||||
MEXICO | Currency risk [member] | Income Tax Receivable [member] | |||||||||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||||||||||||||||||
Foreign exposure on asset (liabilities), net | 13,900,000 | ||||||||||||||||||||||
MEXICO | Currency risk [member] | VAT - long term receivable [member] | |||||||||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||||||||||||||||||
Foreign exposure on asset (liabilities), net | 70,520,000 | 70,520,000 | |||||||||||||||||||||
MEXICO | Currency risk [member] | Trade and Other Payables [member] | |||||||||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||||||||||||||||||
Foreign exposure on asset (liabilities), net | (218,288,000) | (400,697,000) | |||||||||||||||||||||
MEXICO | Currency risk [member] | Provisions Current [member] | |||||||||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||||||||||||||||||
Foreign exposure on asset (liabilities), net | (11,729,000) | (13,534,000) | |||||||||||||||||||||
MEXICO | Currency risk [member] | Income Tax Payable [member] | |||||||||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||||||||||||||||||
Foreign exposure on asset (liabilities), net | (84,393,000) | (87,881,000) | |||||||||||||||||||||
MEXICO | Currency risk [member] | Other Liabilities [member] | |||||||||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||||||||||||||||||
Foreign exposure on asset (liabilities), net | (9,708,000) | (6,178,000) | |||||||||||||||||||||
MEXICO | Currency risk [member] | Provisions Noncurrent [member] | |||||||||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||||||||||||||||||
Foreign exposure on asset (liabilities), net | $ (90,797,000) | $ (87,305,000) | |||||||||||||||||||||
ARGENTINA | |||||||||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||||||||||||||||||
Effect of Foreign denominated items | $ 131,000 | ||||||||||||||||||||||
Change percentage, currency | 10% | 10% | 10% | 10% | 10% | 10% | 10% | ||||||||||||||||
ARGENTINA | Currency risk [member] | |||||||||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||||||||||||||||||
Foreign exposure on asset (liabilities), net | 1,436 | $ 257,464,000 | 2,734 | $ 261,439,000 | |||||||||||||||||||
ARGENTINA | Currency risk [member] | Cash and Cash Equivalent [member] | |||||||||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||||||||||||||||||
Foreign exposure on asset (liabilities), net | 11,845,000 | 4,319,000 | |||||||||||||||||||||
ARGENTINA | Currency risk [member] | Trade and Value Added Tax Long Term Receivable [Member] | |||||||||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||||||||||||||||||
Foreign exposure on asset (liabilities), net | 2,062,918,000 | 1,526,506,000 | |||||||||||||||||||||
ARGENTINA | Currency risk [member] | Trade and Other Payables [member] | |||||||||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||||||||||||||||||
Foreign exposure on asset (liabilities), net | (1,429,416,000) | (1,174,033,000) | |||||||||||||||||||||
ARGENTINA | Currency risk [member] | Provisions Current [member] | |||||||||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||||||||||||||||||
Foreign exposure on asset (liabilities), net | $ (387,883,000) | $ (95,353,000) | |||||||||||||||||||||
WEST AFRICA | |||||||||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||||||||||||||||||
Effect of Foreign denominated items | XAF | XAF 674,000 | ||||||||||||||||||||||
Change percentage, currency | 10% | 10% | 10% | 10% | 10% | 10% | 10% | ||||||||||||||||
WEST AFRICA | Currency risk [member] | |||||||||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||||||||||||||||||
Foreign exposure on asset (liabilities), net | 7,416 | XAF 4,676,296,000 | 28,548 | XAF 16,001,083,000 | |||||||||||||||||||
WEST AFRICA | Currency risk [member] | Cash and Cash Equivalent [member] | |||||||||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||||||||||||||||||
Foreign exposure on asset (liabilities), net | XAF | 6,057,885,000 | 11,494,909,000 | |||||||||||||||||||||
WEST AFRICA | Currency risk [member] | Restricted Cash [Member] | |||||||||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||||||||||||||||||
Foreign exposure on asset (liabilities), net | XAF | 2,338,983,000 | 1,166,963,000 | |||||||||||||||||||||
WEST AFRICA | Currency risk [member] | Trade and Value Added Tax Long Term Receivable [Member] | |||||||||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||||||||||||||||||
Foreign exposure on asset (liabilities), net | XAF | 12,979,116,000 | 13,433,368,000 | |||||||||||||||||||||
WEST AFRICA | Currency risk [member] | Trade and Other Payables [member] | |||||||||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||||||||||||||||||
Foreign exposure on asset (liabilities), net | XAF | (15,346,471,000) | XAF (10,094,158,000) | |||||||||||||||||||||
WEST AFRICA | Currency risk [member] | Income Tax Payable [member] | |||||||||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||||||||||||||||||
Foreign exposure on asset (liabilities), net | XAF | XAF (1,353,215,000) | ||||||||||||||||||||||
AUSTRALIA | |||||||||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||||||||||||||||||
Effect of Foreign denominated items | $ 152,000 | ||||||||||||||||||||||
Change percentage, currency | 10% | 10% | 10% | 10% | 10% | 10% | 10% | ||||||||||||||||
AUSTRALIA | Currency risk [member] | |||||||||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||||||||||||||||||
Foreign exposure on asset (liabilities), net | (1,099) | $ (1,151,000) | (671) | $ (933,000) | |||||||||||||||||||
AUSTRALIA | Currency risk [member] | Cash and Cash Equivalent [member] | |||||||||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||||||||||||||||||
Foreign exposure on asset (liabilities), net | 250,000 | 5,000 | |||||||||||||||||||||
AUSTRALIA | Currency risk [member] | Trade and Value Added Tax Long Term Receivable [Member] | |||||||||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||||||||||||||||||
Foreign exposure on asset (liabilities), net | (115,000) | ||||||||||||||||||||||
AUSTRALIA | Currency risk [member] | Trade and Other Payables [member] | |||||||||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||||||||||||||||||
Foreign exposure on asset (liabilities), net | $ (1,285,000) | $ (939,000) | |||||||||||||||||||||
European Union | |||||||||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||||||||||||||||||
Effect of Foreign denominated items | € | € 24,000 | ||||||||||||||||||||||
Change percentage, currency | 10% | 10% | 10% | 10% | 10% | 10% | 10% | ||||||||||||||||
European Union | Currency risk [member] | |||||||||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||||||||||||||||||
Foreign exposure on asset (liabilities), net | $ (262) | € (274,000) | $ (1,207) | € (1,403,000) | |||||||||||||||||||
European Union | Currency risk [member] | Cash and Cash Equivalent [member] | |||||||||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||||||||||||||||||
Foreign exposure on asset (liabilities), net | € | 0 | 28,000 | |||||||||||||||||||||
European Union | Currency risk [member] | Trade and Other Payables [member] | |||||||||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||||||||||||||||||
Foreign exposure on asset (liabilities), net | € | € (274,000) | € (1,431,000) |
MANAGEMENT OF FINANCIAL RISK _3
MANAGEMENT OF FINANCIAL RISK (Disclosure of Nature and Extent Arising from Financial Instruments - Commodity Price Risk) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Increase (decrease) in sales due to price changes of commodity | $ 1,500,000 | $ (2,800,000) |
Liquidity amount available | 150,500,000 | |
Silver Commodity Type [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Effect on Sales | $ 800,000 | |
Change percentage, commodity | 10% | |
Gold Commodity Type [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Effect on Sales | $ 363,000 | |
Change percentage, commodity | 10% | |
Lead Commodity [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Effect on Sales | $ 550,000 | |
Change percentage, commodity | 10% | |
Zinc Commodity [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Effect on Sales | $ 186,000 | |
Change percentage, commodity | 10% |
MANAGEMENT OF FINANCIAL RISK (C
MANAGEMENT OF FINANCIAL RISK (Capital Management) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
MANAGEMENT OF FINANCIAL RISK [abstract] | ||
Equity | $ 1,244,756 | $ 1,375,148 |
Non-current portion | 219,175 | 157,489 |
Lease obligations | 21,346 | 29,405 |
Less: Cash, cash equivalents and short-term investments | (80,493) | (107,097) |
Capital amount | $ 1,404,784 | $ 1,454,945 |
SUPPLEMENTAL CASH FLOW INFORM_3
SUPPLEMENTAL CASH FLOW INFORMATION (Schedule of changes in working capital) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Supplemental Cashflow Information [abstract] | ||
Trade and other receivables | $ 7,315 | $ (16,897) |
Prepaid expenses | (1,643) | (2,149) |
Inventories | (20,415) | (23,824) |
Trade and other payables | (3,278) | 3,556 |
Increase (decrease) in working capital | $ (18,021) | $ (39,314) |
SUPPLEMENTAL CASH FLOW INFORM_4
SUPPLEMENTAL CASH FLOW INFORMATION (Schedule of Changes in Liabilities Arising from Financing Activities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Amortization of discount | $ 2,434 | $ 1,883 |
Convertible debenture conversion | (60) | |
Long-term borrowings [member] | ||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Liabilities arising from financing activities at beginning of period | 117,082 | 119,850 |
Additions | 80,000 | |
Interest | 626 | 845 |
Payments | (20,000) | (32,288) |
Acquisition of Roxgold | 31,711 | |
Transaction costs | (688) | (3,036) |
Liabilities arising from financing activities at end of period | 177,020 | 117,082 |
Convertible Debenture | ||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Liabilities arising from financing activities at beginning of period | 40,407 | 38,766 |
Interest | 1,808 | 1,641 |
Convertible debenture conversion | (60) | |
Liabilities arising from financing activities at end of period | 42,155 | 40,407 |
Lease liabilities [member] | ||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Liabilities arising from financing activities at beginning of period | 29,405 | 19,497 |
Additions | 2,774 | 7,397 |
Interest | 2,623 | 2,336 |
Loss on debt modifications | (729) | |
Payments | (12,209) | (11,928) |
Terminations | (661) | (1,203) |
Acquisition of Roxgold | 13,597 | |
Foreign exchange | 143 | (291) |
Liabilities arising from financing activities at end of period | $ 21,346 | $ 29,405 |
SUPPLEMENTAL CASH FLOW INFORM_5
SUPPLEMENTAL CASH FLOW INFORMATION (Schedule of significant non-cash financing and investing transactions) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Supplemental Cashflow Information [abstract] | ||
Acquisition of Roxgold | $ 594,666 | |
Mineral properties, plant and equipment changes in closure and reclamation provision | $ 5,021 | (3,729) |
Stock options allocated to share capital upon exercise | 136 | |
Additions on right of use assets | (2,774) | (2,551) |
Fair value of share units allocated to share capital upon settlement | $ 2,525 | $ 4,468 |
NON-CONTROLLING INTEREST (Detai
NON-CONTROLLING INTEREST (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Noncontrolling interests | $ 43,940 | $ 54,422 |
Profit (loss), attributable to non-controlling interests | $ (7,774) | $ 1,522 |
Yaramoko Mine [member] | Government of Burkina Faso [Member] | ||
Noncontrolling interests ownership percentage | 10% | |
Noncontrolling interests | $ 2,309 | |
Profit (loss), attributable to non-controlling interests | $ 7,100 | |
Seguela Project [Member] | Government of Cte d'Ivoire [Member] | ||
Noncontrolling interests ownership percentage | 10% | |
Noncontrolling interests | $ 41,631 | |
Profit (loss), attributable to non-controlling interests | $ 700 |
NON-CONTROLLING INTEREST - Summ
NON-CONTROLLING INTEREST - Summarized Financial Statements (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Current assets | $ 252,712 | $ 281,082 |
Current liabilities | (135,080) | (166,773) |
Non-controlling interest | 43,940 | 54,422 |
Non Controlling Income Statement [Abstract] | ||
Revenue | 681,491 | 599,853 |
Net income (loss) and comprehensive income (loss) | (136,177) | 56,111 |
Statement of cash flows [abstract] | ||
Cash flows provided by operating activities | 194,249 | 147,138 |
Cash flows used in investing activities | (255,333) | (118,499) |
Cash flows (used in) provided by financing activities | 38,466 | $ (51,422) |
Non-controlling interests [member] | ||
Non Controlling Income Statement [Abstract] | ||
Net income (loss) and comprehensive income (loss) | $ (7,774) | |
Yaramoko Mine [member] | Government of Burkina Faso [Member] | ||
Non-controlling interest percentage | 10% | |
Current assets | $ 54,953 | |
Non-current assets | 110,617 | |
Current liabilities | (23,338) | |
Non-current liabilities | (99,921) | |
Net assets | 42,311 | |
Non-controlling interest | 2,309 | |
Non Controlling Income Statement [Abstract] | ||
Revenue | 193,541 | |
Net income (loss) and comprehensive income (loss) | 40,614 | |
Statement of cash flows [abstract] | ||
Cash flows provided by operating activities | 83,124 | |
Cash flows used in investing activities | (53,449) | |
Cash flows (used in) provided by financing activities | $ (32,309) | |
Seguela Project [Member] | Government of Cte d'Ivoire [Member] | ||
Non-controlling interest percentage | 10% | |
Current assets | $ 6,536 | |
Non-current assets | 230,570 | |
Current liabilities | (13,629) | |
Non-current liabilities | (254,158) | |
Net liabilities | (30,681) | |
Non-controlling interest | 41,631 | |
Non Controlling Income Statement [Abstract] | ||
Net income (loss) and comprehensive income (loss) | 6,964 | |
Statement of cash flows [abstract] | ||
Cash flows provided by operating activities | (710) | |
Cash flows used in investing activities | (124,737) | |
Cash flows (used in) provided by financing activities | $ 121,521 |
CONTINGENCIES AND CAPITAL COM_2
CONTINGENCIES AND CAPITAL COMMITMENTS (Narrative) (Details) S/ in Millions | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 PEN (S/) | Dec. 31, 2021 USD ($) | |
Disclosure of other provisions [line items] | ||||
Capital commitments | $ 14,303,000 | $ 71,759,000 | ||
Capital commitment amounts expected to be expended within one year | 13,900,000 | |||
Tax expense (income) | 10,797,000 | 47,781,000 | ||
Income taxes payable | 11,591,000 | 20,563,000 | ||
Government of Burkina Faso [Member] | ||||
Disclosure of other provisions [line items] | ||||
Potential early payment termination amount | 2,000,000 | |||
Government of Cte d'Ivoire [Member] | ||||
Disclosure of other provisions [line items] | ||||
Potential early payment termination amount | 19,700,000 | |||
Civil Work [Member] | ||||
Disclosure of other provisions [line items] | ||||
Capital commitments | 6,500,000 | |||
Equipment Purchases [Member] | ||||
Disclosure of other provisions [line items] | ||||
Capital commitments | 1,800,000 | |||
Other Services [Member] | ||||
Disclosure of other provisions [line items] | ||||
Capital commitments | 100,000 | |||
Construction Related [Member] | ||||
Disclosure of other provisions [line items] | ||||
Capital commitments | 14,300,000 | |||
PERU | ||||
Disclosure of other provisions [line items] | ||||
Payment of disputed amount | 1,100,000 | S/ 4.3 | ||
PERU | Assessed in Prior Period [Member] | ||||
Disclosure of other provisions [line items] | ||||
Income tax interest and penalties | 600,000 | 2.4 | ||
Payment of disputed amount | 1,100,000 | S/ 4.3 | ||
ARGENTINA | ||||
Disclosure of other provisions [line items] | ||||
Income taxes payable | 5,500,000 | $ 6,000,000 | ||
Caylloma Mine [Member] | ||||
Disclosure of other provisions [line items] | ||||
Undiscounted closure costs | 18,200,000 | |||
Progressive closure activities | $ 6,200,000 | |||
Final closure activities | 9,800,000 | |||
Post closure activities | 2,300,000 | |||
Guarantees with government current year | 10,800,000 | |||
San Jose Mine [Member] | ||||
Disclosure of other provisions [line items] | ||||
Guarantees with government current year | $ 900,000 |
IMPAIRMENT - Schedule of impair
IMPAIRMENT - Schedule of impairment expense in cash generating units (CGUs) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
IMPAIRMENT | |
Impairment Expense | $ 182,842 |
Yaramoko | |
IMPAIRMENT | |
Carrying Value | 199,652 |
Recoverable Amount | 96,195 |
Impairment Expense | 103,457 |
Lindero | |
IMPAIRMENT | |
Carrying Value | 525,336 |
Recoverable Amount | 455,180 |
Impairment Expense | 70,156 |
San Jose | |
IMPAIRMENT | |
Carrying Value | 128,349 |
Recoverable Amount | 119,121 |
Impairment Expense | $ 9,229 |
IMPAIRMENT - Schedule of discou
IMPAIRMENT - Schedule of discount rate for cash generating unit for impairment assessment (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Yaramoko | ||
IMPAIRMENT | ||
Discount rate | 7.90% | |
Lindero | ||
IMPAIRMENT | ||
Discount rate | 7.10% | 6.25% |
San Jose | ||
IMPAIRMENT | ||
Discount rate | 5.50% |
IMPAIRMENT - Schedule of metal
IMPAIRMENT - Schedule of metal prices assumptions used for impairment determination (Details) | Dec. 31, 2022 $ / oz |
Gold Commodity Type [member] | |
Metal Price Assumptions Used [line items] | |
2023 | 1,800 |
2024 | 1,800 |
2025 | 1,725 |
2026 | 1,725 |
2027 | 1,700 |
Long-Term | 1,650 |
Silver Commodity Type [member] | |
Metal Price Assumptions Used [line items] | |
2023 | 22 |
2024 | 22.50 |
2025 | 22 |
2026 | 23 |
2027 | 23 |
Long-Term | 21.50 |
IMPAIRMENT - Narrative (Details
IMPAIRMENT - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
IMPAIRMENT | ||
Impairment Expense | $ 182,842 | |
Decline in gold ounces in proven and probable reserves from additional drilling, percentage | 43% | |
Yaramoko | ||
IMPAIRMENT | ||
Impairment Expense | $ 103,457 | |
Discount rate | 7.90% | |
Lindero | ||
IMPAIRMENT | ||
Impairment Expense | $ 70,156 | |
Discount rate | 7.10% | 6.25% |
San Jose | ||
IMPAIRMENT | ||
Impairment Expense | $ 9,229 | |
Discount rate | 5.50% |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) | 5 Months Ended | ||||||||
Jan. 05, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 15, 2022 | Dec. 14, 2022 | Dec. 31, 2021 | Nov. 05, 2021 | Nov. 04, 2021 | Dec. 31, 2020 | |
Disclosure of non-adjusting events after reporting period [line items] | |||||||||
Debt outstanding | $ 219,175,000 | $ 157,489,000 | $ 158,616,000 | ||||||
Amended Credit Facility [Member] | |||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||
Borrowing capacity | $ 250,000,000 | $ 200,000,000 | $ 200,000,000 | $ 120,000,000 | |||||
Annulment of Environmental Impact Authorization [Member] | |||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||
Extension term | 12 years | ||||||||
Annulment of Environmental Impact Authorization [Member] | Amended Credit Facility [Member] | Top of range [member] | |||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||
Threshold amount of investments and financial assistance to non guaranteeing subsidiaries | $ 3,000,000 | ||||||||
Annulment of Environmental Impact Authorization [Member] | Scenario, Receipt of Definitive Injunction [Member] | Amended Credit Facility [Member] | |||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||
Increase (decrease) in debt instrument borrowing capacity | 50,000,000 | ||||||||
Annulment of Environmental Impact Authorization [Member] | Scenario, Debt Instrument Covenant [Member] | Amended Credit Facility [Member] | |||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||
Borrowing capacity | 250,000,000 | ||||||||
Cash | 70,000,000 | ||||||||
Annulment of Environmental Impact Authorization [Member] | Scenario, Debt Instrument Covenant Fail To Maintain [Member] | Amended Credit Facility [Member] | |||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||
Borrowing capacity | $ 200,000,000 | ||||||||
Annulment of Environmental Impact Authorization [Member] | Gold Commodity Type [member] | |||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||
Percentage of hedging Instrument | 25% |