Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2017shares | |
Document And Entity Information [Abstract] | |
Document Type | 40-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2017 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | FY |
Trading Symbol | ALO |
Entity Registrant Name | Alio Gold Inc. |
Entity Central Index Key | 1,502,154 |
Current Fiscal Year End Date | --12-31 |
Entity Current Reporting Status | Yes |
Entity Common Stock Shares Outstanding | 44,678,701 |
Consolidated Statements of Earn
Consolidated Statements of Earnings and Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | ||
Metal revenues | $ 105,162 | $ 123,873 |
Cost of sales (including depreciation and depletion) | 74,459 | 89,016 |
Earnings from mine operations | 30,703 | 34,857 |
Corporate and administrative expenses | 8,637 | 7,607 |
Loss on sale of asset | 856 | |
Impairment of exploration and evaluation asset | 12,737 | |
Impairment reversal of mineral properties and other assets | (23,699) | |
Earnings from operations | 22,066 | 37,356 |
Other income, net | 370 | 159 |
Finance expense, net | 1,025 | (2,957) |
(Loss) gain on derivative contracts | (1,848) | 2,003 |
Foreign exchange loss | (925) | (591) |
Earnings before income taxes | 20,688 | 35,970 |
Income taxes | ||
Current tax expense | 4,323 | 3,362 |
Deferred tax expense | 4,467 | 870 |
Income tax expense | 8,790 | 4,232 |
Earnings and comprehensive income for the period | $ 11,898 | $ 31,738 |
Weighted average shares outstanding: | ||
Basic | 39,409,369 | 32,098,930 |
Diluted | 39,857,243 | 32,419,355 |
Earnings per share: | ||
Basic | $ 0.30 | $ 0.99 |
Diluted | $ 0.30 | $ 0.98 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
OPERATING ACTIVITIES | ||
Earnings before income taxes | $ 20,688 | $ 35,970 |
Items not affecting cash: | ||
Depletion and depreciation | 4,641 | 14,299 |
Finance expense, net | (1,025) | 2,957 |
Loss (gain) on derivative contracts | 1,854 | (1,875) |
Share-based payments | 1,287 | 837 |
Other provision revaluation | 141 | 95 |
Loss on sale of asset | 856 | |
Impairment of exploration and evaluation asset | 12,737 | |
Impairment reversal of mineral properties and other assets | (23,699) | |
Unrealized foreign exchange loss | 542 | 706 |
Non cash items including earnings before tax | 28,128 | 42,883 |
Changes in non-cash working capital items: | ||
Trade and other receivables | (8,870) | 2,803 |
Inventories | (10,889) | (1,255) |
Advances and prepaid expenses | 298 | (700) |
Trade payables and accrued liabilities | 8,063 | (9,649) |
Income tax paid | (3,660) | |
Cash provided by operating activities | 13,070 | 34,082 |
INVESTING ACTIVITIES | ||
Expenditures on mineral properties, and plant and equipment | (22,229) | (13,140) |
Expenditures on exploration and evaluation | (16,099) | (5,839) |
Purchase of short-term investments | (20,000) | |
Interest received on short-term investments | 33 | |
Cash used in investing activities | (55,795) | (12,378) |
FINANCING ACTIVITIES | ||
Proceeds from equity financing, net of transaction costs | 37,180 | 13,803 |
Proceeds from warrants exercise | 2,803 | |
Proceeds from options exercise | 130 | |
Interest paid | (6) | (597) |
Loan facility extension fees | (602) | |
Repayment of loan facility | (10,223) | |
Repayment of debenture | (1,540) | |
Cash provided by financing activities | 40,107 | 841 |
Effects of exchange rate changes on the balance of cash held in foreign currencies | 215 | (167) |
(Decrease) increase in cash and cash equivalents | (2,403) | 22,378 |
Cash and cash equivalents, beginning of year | 33,877 | 11,499 |
Cash and cash equivalents, end of year | 31,474 | 33,877 |
Caballo Blanco Property | ||
INVESTING ACTIVITIES | ||
Caballo Blanco Property sale proceeds, net of transaction costs | $ 2,500 | 9,153 |
Newstrike | ||
INVESTING ACTIVITIES | ||
Newstrike transaction costs | $ (2,552) |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current | ||
Cash and cash equivalents | $ 31,474 | $ 33,877 |
Short-term investments | 20,082 | |
Trade and other receivables | 11,692 | 8,899 |
Inventories | 21,984 | 10,335 |
Advances and prepaid expenses | 1,258 | 1,556 |
Derivative asset | 21 | 1,875 |
Total current assets | 86,511 | 56,542 |
Mineral properties, plant and equipment, exploration and evaluation | 149,124 | 114,301 |
Total assets | 235,635 | 170,843 |
Current | ||
Trade payables and accrued liabilities | 24,796 | 17,187 |
Equipment financing | 378 | |
Other provisions | 1,219 | |
Total current liabilities | 24,796 | 18,784 |
Warrant liability | 595 | 2,471 |
Deferred tax liabilities | 7,972 | 3,354 |
Provision for site reclamation and closure | 4,101 | 3,148 |
Other provisions | 1,380 | |
Other | 206 | |
Total liabilities | 39,050 | 27,757 |
EQUITY | ||
Issued capital | 253,491 | 212,698 |
Share-based payment reserve | 19,125 | 18,317 |
Deficit | (76,031) | (87,929) |
Total equity | 196,585 | 143,086 |
Total liabilities and equity | $ 235,635 | $ 170,843 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Number of common shares | Issued Capital | Share-based Payment Reserve | (Deficit) Retained Earnings | ||
Beginning balance at Dec. 31, 2015 | $ 96,462 | $ 198,649 | $ 17,480 | $ (119,667) | |||
Beginning balance, shares at Dec. 31, 2015 | [1] | 31,533,207 | |||||
Earnings and comprehensive income for the period | 31,738 | 31,738 | |||||
Equity settled share-based payments | 837 | 837 | |||||
Shares issued for debenture interest | $ 80 | 80 | |||||
Shares issued for debenture interest, shares | 30,193 | 30,193 | [1] | ||||
Shares issued in lieu of bonus payment on long-term debt extinguishment | $ 134 | 134 | |||||
Shares issued in lieu of bonus payment on long-term debt extinguishment, shares | [1] | 55,000 | |||||
Shares issued in lieu of termination benefits | $ 848 | 848 | |||||
Shares issued in lieu of termination benefits, shares | 304,447 | 304,447 | [1] | ||||
Shares issued for cash equity financing | $ 12,987 | 12,987 | |||||
Shares issued for cash equity financing, shares | [1] | 3,640,000 | |||||
Ending balance at Dec. 31, 2016 | 143,086 | 212,698 | 18,317 | (87,929) | |||
Ending balance, shares at Dec. 31, 2016 | [1] | 35,562,847 | |||||
Earnings and comprehensive income for the period | 11,898 | 11,898 | |||||
Equity settled share-based payments | 892 | 892 | |||||
Shares issued for cash equity financing | 36,438 | 36,438 | |||||
Shares issued for cash equity financing, shares | [1] | 8,062,000 | |||||
Shares issued on exercise of warrants | 4,141 | 4,141 | |||||
Shares issued on exercise of warrants, shares | [1] | 1,000,000 | |||||
Shares issued on exercise of share options | $ 130 | 214 | (84) | ||||
Share issued on exercise of share options, shares | 53,854 | 53,854 | [1] | ||||
Ending balance at Dec. 31, 2017 | $ 196,585 | $ 253,491 | $ 19,125 | $ (76,031) | |||
Ending balance, shares at Dec. 31, 2017 | [1] | 44,678,701 | |||||
[1] | Share consolidation (note 1). |
Nature of Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Nature Of Operations [Abstract] | |
Nature of Operations | 1. NATURE OF OPERATIONS Alio Gold Inc. (formerly Timmins Gold Corp.) was incorporated on March 17, 2005 under the laws of the Province of British Columbia, Canada. The Company is in the business of acquiring, exploring, developing and operating mineral resource properties in Mexico, through its wholly-owned subsidiaries, Timmins Goldcorp Mexico, S.A. de C.V., Molimentales del Noroeste, S.A. de C.V. (“MdN”) and Minera Aurea, S.A de C.V. (“Minera Aurea”) (collectively “the subsidiaries”). MdN owns the San Francisco Mine in Sonora, Mexico and Minera Aurea holds a 100% interest in the Ana Paula Property (“Ana Paula”), an exploration and evaluation asset in Guerrero, Mexico. The Company is listed for trading on the Toronto Stock Exchange (“TSX”) and the New York Stock Exchange American under the symbol ALO. The registered office of the Company is located at Suite 507 - 700 West Pender Street, Vancouver, British Columbia, Canada, V6C 1G8. Share consolidation On May 12, 2017, the Company filed articles of amendment to complete an approved share consolidation of the Company’s issued and outstanding common shares on the basis of ten pre-consolidated common shares for one post-consolidated common share. The share consolidation was approved by the shareholders on May 12, 2017. The share consolidation affects all issued and outstanding common shares, options and warrants. All information relating to basic and diluted earnings per share (note 16), issued and outstanding common shares (note 14(a)), share options (note 14(b)) and warrants (note 13), and per share amounts in these consolidated financial statements have been adjusted retrospectively to reflect the share consolidation. |
Basis of Preparation
Basis of Preparation | 12 Months Ended |
Dec. 31, 2017 | |
Basis Of Preparation [Abstract] | |
Basis of Preparation | ALIO GOLD INC. (Formerly Timmins Gold Corp.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS December 31, 2017 and 2016 (In thousands of United States dollars, except where noted) 2. BASIS OF PREPARATION a) Statement of compliance These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”). These consolidated financial statements were approved by the Board of Directors and authorized for issue on February 20, 2018. b) Basis of measurement The consolidated financial statements have been prepared using the historical cost basis, except for certain financial assets and liabilities which are measured at fair value, as specified by IFRS for each type of asset, liability, income and expense as set out in the accounting policies below. c) Functional currency and presentation currency The consolidated financial statements are presented in thousands of United States (“US”) dollars, except as otherwise noted, which is the functional currency of the Company and each of the Company’s subsidiaries. References to C$ are to Canadian dollars, which are also stated in thousands. d) Judgements The critical judgements that the Company’s management has made in the application of the accounting policies presented in note 3 that have the most significant effect on the amounts recognized in these consolidated financial statements are as follows: i. Functional currency The functional currency for each of the Company’s subsidiaries is the currency of the primary economic environment in which the respective entity operates; the Company has determined the functional currency of each entity to be the US dollar. Such determination involves certain judgements to identify the primary economic environment. The Company reconsiders the functional currency of its subsidiaries if there is a change in events and/or conditions which determine the primary economic environment. ii. Economic recoverability and probability of future economic benefits of exploration, evaluation and development costs Management has determined that exploratory drilling, evaluation, development and related costs incurred which were capitalized as exploration and evaluation (note 10) have future economic benefits and are economically recoverable. Management uses several criteria in its assessments of economic recoverability and probability of future economic benefit which may include geologic and metallurgic information, history of conversion of mineral deposits to proven and probable reserves, scoping and feasibility studies, accessible facilities, existing permits and life of mine plans. iii. Assessment of indicators of impairment and impairment reversal (note 6) The Company assesses its mineral properties, plant and equipment assets, and exploration and evaluation properties each reporting period to determine whether any indication of impairment or impairment reversal exists. Where an indicator of impairment or impairment reversal exists, a formal estimate of the recoverable amount is made, which is considered to be the higher of the fair value less costs of disposal and value in use. During the year ended December 31, 2017, a revitalization plan for the San Francisco Mine was finalized. On May 25, 2017, an updated NI 43-101 F1 Technical Report (the “Report”) was completed with an effective date of April 1, 2017. The Company assessed the Report and updated mine plan for impairment reversal indicators. The Report includes assumptions and estimates that require operational validation including gold recovery and capital project completion. The Company concluded that until significant operational estimates are validated there are no indicators of impairment reversal. The Company will continue to monitor and assess these factors in future periods to determine if and when indicators of an impairment or reversal of impairment are present necessitating a reassessment of the carrying value of the San Francisco Mine. e) Significant estimates and assumptions The preparation of the Company’s consolidated financial statements in conformity with IFRS requires management to make estimates based on assumptions about future events that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized prospectively in the period in which the estimate is revised. Areas that require significant estimates and assumptions as the basis for determining the stated amounts include, but are not limited to, the following: i. Mineral reserves Proven and probable mineral reserves are the economically mineable parts of the Company’s measured and indicated mineral resources demonstrated by at least a preliminary feasibility study. The Company estimates its proven and probable reserves and measured and indicated and inferred mineral resources based on information compiled by appropriately qualified persons. The information relating to the geological data on the size, depth and shape of the ore body requires complex geological judgements to interpret the data. The estimation of future cash flows related to proven and probable reserves is based upon factors such as estimates of foreign exchange rates, commodity prices, future capital requirements and production costs along with geological assumptions and judgements made in estimating the recovery rate, size and grade of the ore body. Changes in the proven and probable reserves or measured and indicated and inferred mineral resources estimates may impact the carrying value of mineral properties, exploration and evaluation properties and plant and equipment (note 10), site reclamation and closure provisions (note 12), recognition of deferred tax amounts (note 15) and depreciation and depletion (note 10). ii. Depreciation and depletion (note 10) Plants and other facilities used directly in mining activities are depreciated using the units-of-production (“UOP”) method over a period not to exceed the estimated life of the ore body based on recoverable ounces to be mined from proven and probable reserves. Mobile and other equipment are depreciated, net of residual value, on a straight-line basis, over the useful life of the equipment to the extent that the useful life does not exceed the related estimated life of the mine based on proven and probable reserves. The calculation of the UOP rate, and therefore the annual depreciation and depletion expense could be materially affected by changes in the underlying estimates. Changes in estimates can be the result of actual future production differing from current forecasts of future production, expansion of mineral reserves through exploration activities, differences between estimated and actual recovery rates and costs of mining and differences in gold price used in the estimation of mineral reserves. Significant judgement is involved in the estimation of useful life and residual values for the computation of depreciation and depletion and no assurance can be given that actual useful lives and residual values will not differ significantly from current assumptions. iii. Deferred stripping costs (note 10) In determining whether stripping costs incurred during the production phase of a mining property relate to reserves and resources that will be mined in a future period and therefore should be capitalized, the Company makes estimates of the stripping activity over the life of the mining property and the life of mining phases. Changes in estimated life of mine strip ratios or life of phase strip ratios can result in a change to the future capitalization of stripping costs incurred and future depreciation and depletion charges. iv. Inventories (note 9) Expenditures incurred, and depreciation and depletion of assets used in mining and processing activities are deferred and accumulated as the cost of ore in process and finished metal inventory. These deferred amounts are carried at the lower of average cost or net realizable value (“NRV”) and are subject to significant measurement uncertainty. Write-downs of ore in process and finished metal inventory resulting from NRV impairments are reported as a component of current period costs. The primary factors that influence the need to record write-downs include prevailing and long-term metal prices and prevailing costs for production inputs such as labour, fuel and energy, materials and supplies, as well as realized ore grades and actual production levels. Costs are attributed to ore in process based on current mining costs, including applicable depreciation and depletion relating to mining operations incurred up to the point of placing the ore on the leach pad. Costs are removed from ore in process based on the average cost per estimated recoverable ounce of gold on the leach pad as the gold is recovered. Estimates of recoverable gold on the leach pads are calculated from the quantities of ore placed on the pads, the grade of ore placed on the leach pads and an estimated percentage of recovery. Timing and ultimate recovery of gold contained on leach pads can vary significantly from the estimates. The quantities of recoverable gold placed on the leach pads are reconciled to the quantities of gold actually recovered (metallurgical balancing), by comparing the grades of ore placed on the leach pads to actual ounces recovered. The nature of the leaching process inherently limits the ability to precisely monitor inventory levels. As a result, the metallurgical balancing process is constantly monitored and the engineering estimates are refined based on actual results over time. The ultimate recovery of gold from a leach pad will not be known until the leaching process is completed. The allocation of costs to ore in process and finished metal inventory and the determination of NRV involve the use of estimates. There is a high degree of judgement in estimating future costs, future production level, gold prices, and the ultimate estimated recovery for ore in process. There can be no assurance that actual results will not differ significantly from estimates used in the determination of the carrying value of inventories. v. Recoverable value of mineral properties, plant and equipment, exploration and evaluation assets (note 6) Where an indicator of impairment or impairment reversal exists, a formal estimate of the recoverable amount is made, which is considered to be the higher of the fair value less costs of disposal and value in use. In determining the recoverable amounts of the Company’s mineral properties and plant and equipment assets, management makes estimates of the discounted future cash flows expected to be derived from the Company’s mining properties, costs of disposal of the mining properties and the appropriate discount rate. Reductions or increases in metal price forecasts; estimated future costs of production; estimated future capital expenditures; recoverable reserves, resources, and exploration potential; and economics can result in an impairment or impairment reversal of the carrying amounts of the Company’s property, plant and equipment and/or mining interests. vi. Provision for site reclamation and closure (note 12) Site reclamation and closure provisions are recognized in the period in which they arise and are stated as the present value of estimated future costs taking into account inflation and discounted at a risk free rate. These estimates require extensive judgement about the nature, cost and timing of the work to be completed, and may change with future changes to costs, environmental laws and regulations and remediation practices. In view of uncertainties concerning environmental rehabilitation, the ultimate costs could be materially different from the amounts estimated. It is possible that the Company’s estimate of the site reclamation and closure liability could change as a result of change in regulations, the extent of environmental remediation required, the means and technology of reclamation activities or cost estimates. Any such changes could materially impact the estimated provision for site reclamation and closure. Changes in estimates are accounted for prospectively from the period the estimate is revised. vii. Current and deferred taxes (note 15) The Company’s provision for income taxes is estimated based on the expected annual effective tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The current and deferred components of income taxes are estimated based on forecasted movements in temporary differences. Changes to the expected annual effective tax rate and differences between the actual and expected effective tax rate and between actual and forecasted movements in temporary differences will result in adjustments to the Company’s provision for income taxes in the period changes are made and/or differences are identified. In assessing the probability of realizing income tax assets recognized, management makes estimates related to expectations of future taxable income, applicable tax planning opportunities, expected timing of reversals of existing temporary differences and the likelihood that tax positions taken will be sustained upon examination by applicable tax authorities. In making its assessments, management gives additional weight to positive and negative evidence that can be objectively verified. Estimates of future taxable income are based on forecasted cash flows from operations and the application of existing tax laws in each jurisdiction. Forecasted cash flows from operations are based on life of mine projections internally developed and reviewed by management. Weight is attached to tax planning opportunities that are within the Company’s control, and are feasible and implementable without significant obstacles. The likelihood that tax positions taken will be sustained upon examination by applicable tax authorities is assessed based on individual facts and circumstances of the relevant tax position evaluated in light of all available evidence. Where applicable tax laws and regulations are either unclear or subject to ongoing varying interpretations, it is reasonably possible that changes in these estimates can occur that materially affect the amounts of income tax assets recognized. At the end of each reporting period, the Company reassesses unrecognized income tax assets. viii. Share-based payments (note 14(b) and 14(c)) Equity-settled awards Share-based payments are measured at fair value. Options are measured using the Black-Scholes option pricing model based on estimated fair values of all share-based awards at the date of grant and are expensed to earnings or loss from operations over each award’s vesting period. The Black-Scholes option pricing model utilizes subjective assumptions such as expected price volatility and expected life of the option. Changes in these input assumptions can significantly affect the fair value estimate. Cash-settled awards Cash-settled awards are measured at fair value initially using the market value of the underlying shares on the day preceding the date of the grant of the award and are required to be remeasured to fair value at each reporting date until settlement. Performance share units are measured using a Monte Carlo valuation model. The model utilizes assumptions such as the risk-free rate, price volatility and foreign exchange volatility. Changes in these input assumptions can significantly affect the fair value estimate. ix. Contingencies (note 21) Due to the nature of the Company’s operations, various legal and tax matters can arise from time to time. In the event that management’s estimate of the future resolution of these matters changes, the Company will recognize the effects of the changes in its consolidated financial statements for the period in which such changes occur. 6 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Significant Accounting Policies [Abstract] | |
Significant Accounting Policies | 3. SIGNIFICANT ACCOUNTING POLICIES The significant accounting policies used in the preparation of these consolidated financial statements are as follows: a) Basis of consolidation These consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries disclosed in note 1. All inter-company balances, transactions, revenues and expenses have been eliminated on consolidation. Control exists where the parent entity has power over the investee and is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Subsidiaries are included in the consolidated financial statements from the date control commences until the date control ceases. b) Foreign currency translation In preparing the financial statements of each individual group entity, transactions in currencies other than the entity's functional currency (“foreign currencies”) are translated at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary assets and liabilities denominated in foreign currencies are translated at the exchange rates prevailing at that date. Exchange gains and losses are recognized on a net basis in earnings or loss from operations for the period. c) Cash and cash equivalents and restricted cash Cash and cash equivalents and restricted cash in the statements of financial position are comprised of cash and highly liquid investments having maturity dates of three months or less from the date of purchase, which are readily convertible into known amounts of cash. d) Short-term investments Short-term investments are investments in Guaranteed Investment Certificates (“GICs”), which are current in nature, with an original maturity greater than three months. e) Revenue recognition Metal revenues are earned from the sale of refined metal (primarily gold and silver by-product) and are recognized when significant risks and rewards of ownership have passed to the buyer, it is probable that economic benefits associated with the transaction will flow to the Company, the sale price can be measured reliably, the Company has no significant continuing involvement, and the costs incurred or to be incurred in respect of the transaction can be measured reliably. Metal revenues are subject to adjustment upon final settlement based upon metal prices, weights and assays. These adjustments are recorded within metal revenues. f) Inventories The Company predominantly produces gold and silver by-product. Inventories consist of ore in process, finished metal inventory (doré), and operational supplies. Doré represents a bar containing predominantly gold by value which must be refined into its saleable metals. These inventories are valued at the lower of cost and net realizable value (“NRV”) after consideration of additional processing, refining and transportation costs. NRV represents the estimated future sales price of the product based on prevailing and long-term metals prices, less the estimated costs to complete production and bring the product to saleable form. Write-downs of inventory are recognized in earnings or loss from operations as incurred. The Company reverses write-downs in the event that there is a subsequent increase in NRV. i. Ore in process The recovery of gold and silver from the ore is achieved through heap leaching processes. Costs are added to ore on leach pads based on current mining and processing costs, including applicable overhead, depletion and depreciation relating to mining operations. Costs are removed from ore on leach pads as ounces are recovered, based on the average cost per ounce of recoverable gold in ore in process inventory. ii. Finished metal inventory Finished metal inventory consists of doré bars containing gold and silver. iii. Supplies Supplies include consumables used in operations such as fuel, grinding material, chemicals, and spare parts. NRV is estimated as replacement cost. Major spare parts and standby equipment are included in plant and equipment when they meet the definition of property, plant and equipment. g) Mineral properties, plant and equipment, exploration and evaluation i. Mineral property development costs Mineral property development costs, including reclassified mineral property acquisition costs and capitalized exploration and evaluation costs, are stated at cost less accumulated depletion and accumulated impairment losses. Costs associated with the commissioning of new assets, net of incidental revenues, are capitalized as mineral property costs in the period before they are operating in the manner intended by management. The Company capitalizes the cost of acquiring, maintaining, exploring, and developing mineral properties until such time as the properties are placed into production, abandoned, sold or considered to be impaired in value. Costs of producing properties are amortized using the UOP method based on estimated proven and probable reserves forecast to be extracted over the life of the mine and the costs of abandoned properties are written off in the period in which that decision is made by management. Proceeds received on the sale of interests in mineral properties are credited to the carrying value of the mineral properties, with any excess included in earnings or loss as incurred. Write-offs due to impairment in value are charged to earnings or loss as incurred. In open pit mining operations, it is necessary to remove overburden and other waste in order to access the ore body. Stripping costs incurred prior to commercial production are capitalized and deferred as part of the cost of constructing the mine. Mining costs associated with stripping activities during the production phase of a mine are variable production costs that are included in the costs of the inventory during the period that the stripping costs are incurred, unless the stripping activity can be shown to represent future benefits to the mineral property, in which case stripping costs are capitalized. Future benefits to the mineral property are demonstrated when stripping activity results in either immediate usable ore to produce finished gold doré bar inventory or improved access to sources of gold reserves that will be produced in future periods that would otherwise not have been accessible. Stripping activity occurs on separately identifiable components of the open pit and the amount capitalized is calculated by multiplying the tonnes removed for stripping purposes from each identifiable component during the period by the mining cost per tonne. The Company includes stripping costs in its production costs using a strip ratio based on tonnes of material removed compared to the estimated strip ratio per each separately identifiable component. Periods where the actual strip ratio for the identifiable component exceeded the average life of phase strip ratio for that component resulted in deferral of the excess stripping costs as an asset recorded within mineral properties (note 10). ii. Plant and equipment Plant and equipment is measured at cost less accumulated depreciation and impairment losses. Cost includes the purchase price, any costs directly attributable to bringing plant and equipment to the location and condition necessary for it to be capable of operating in the manner intended by management and the estimated site reclamation and closure costs associated with removing the asset, and, where applicable, borrowing costs. Upon sale or abandonment of any plant and equipment, the cost and related accumulated depreciation and impairment losses are written off and any gains or losses thereon are recognized in earnings or loss for the period. When the parts of an item of plant and equipment have different useful lives, they are accounted for as separate items (major components) of plant and equipment. The cost of replacing or overhauling a component of an item of plant and equipment is recognized in the carrying amount of the item if it is probable that the future economic benefits embodied within the component will flow to the Company and its cost can be measured reliably. The carrying amount of the replaced component is derecognized. Maintenance and repairs of a routine nature are charged to earnings or loss as incurred. iii. Exploration and evaluation costs Acquisition costs for exploration and evaluation stage properties are capitalized. Exploration and evaluation expenditures incurred on a mineral property are capitalized where management determines there is sufficient evidence that the expenditure will result in a future economic benefit to the Company. All other exploration and evaluation expenditures are expensed as incurred. Exploration and evaluation expenditures comprise costs that are directly attributable to: • researching and analyzing existing exploration data; • conducting geological studies, exploratory drilling and sampling; • examining and testing extraction and treatment methods; and, • activities in relation to evaluating the technical feasibility and commercial viability of extracting a mineral resource. Subsequent to completion of a positive economic analysis on a mineral property, capitalized acquisition costs and exploration and evaluation expenditures are reclassified to mineral properties. The Company is in the process of exploring and developing many of its exploration and evaluation properties and has not yet determined the amount of reserves available. Management reviews the carrying value of mineral properties at each reporting date and will recognize impairment in value based upon current exploration results, the prospect of further work being carried out by the Company, the assessment of future probability of profitable revenues from the property, or from the sale of the property. Amounts shown for properties represent costs incurred net of impairments and recoveries. iv. Depletion and depreciation Mineral property costs, including deferred stripping costs, are depreciated when commercial production begins using the UOP method based on estimated proven and probable reserves. Plant and equipment, including major components, are depreciated using the following depreciation methods and rates for the year ended December 31, 2017: Computer equipment 30% straight line method Leasehold improvements 20% straight line method Office furniture and equipment 10% straight line method Vehicles 25% straight line method Mine equipment and buildings UOP method Plant and equipment UOP method From October 1, 2015, to September 30, 2016, as a result of the impairment (note 6(b)), the expected life of plant and equipment at the San Francisco Mine was revised to align to the updated mine plan. The associated depreciation rates were updated as follows, with no changes in the depreciation method: Computer equipment 33% straight line method Leasehold improvements 33% straight line method Office furniture and equipment 33% straight line method Vehicles 33% straight line method Mine equipment and buildings UOP method Plant and equipment UOP method Effective October 1, 2016, as a result of the impairment reversal (note 6), the expected life of plant and equipment at the San Francisco Mine was revised to align with depreciation rates above which remained in place for the year ended December 31, 2017. Depreciation commences on the date the asset is available for use. h) Provisions A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably and it is probable that an outflow of economic benefits will be required to settle the obligation. Constructive obligations are obligations that derive from the Company’s actions where: • by an established pattern of past practice, published policies or a sufficiently specific current statement, the Company has indicated to other parties that it will accept certain responsibilities; and, • as a result, the Company has created a valid expectation on the part of those other parties that it will discharge those responsibilities. Provisions are reviewed at the end of each reporting period and adjusted to reflect management’s current best estimate of the expenditure required to settle the present obligation at the end of the reporting period. If it is no longer probable that an outflow of resources embodying economic benefits will be required to settle the obligation, the provision is reversed. Provisions are reduced by actual expenditures for which the provision was originally recognized. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects the current market assessments of the time value of money and the risks specific to the liability. The accretion of the discount is charged to earnings or loss for the period. Provision for site reclamation and closure The Company’s mining and exploration activities are subject to various laws and regulations governing the protection of the environment. The Company records the fair value of a provision for site reclamation and closure as a liability in the period in which it incurred a legal or constructive obligation associated with the reclamation of the mine site and the retirement of tangible long-lived assets that result from the acquisition, construction, development, and/or normal use of the assets. The obligation is measured initially at present value based on estimated future cash flows derived using internal information and third party reports. The estimated cost is capitalized and included in the carrying value of the related mineral properties and is depreciated The provision is initially discounted using a current market-based pre-tax discount rate and subsequently increased for the unwinding of the discount. The unwinding of the discount is charged to earnings or loss for the period. At each reporting date, the Company reviews its provision for site reclamation and closure to reflect the current best estimate. The provision for site reclamation and closure is adjusted for changes in factors such as the amount or timing of the expected underlying cash flows, or the market-based pre-tax discount rate, with the offsetting amount recorded to the site reclamation and closure asset included in mineral properties which arises at the time of establishing the provision. The site reclamation and closure asset is depreciated i) Share-based payments i. Equity-settled awards Certain employees and directors of the Company receive a portion of their remuneration in the form of share options. The fair value of the share options, determined at the date of the grant, is charged to earnings or loss, with an offsetting credit to share-based payment reserve, over the vesting period. If and when the share options are exercised, the applicable original amounts of share-based payment reserve are transferred to issued capital. The fair value of a share-based payment is determined at the date of the grant. The estimated fair value of share options is measured using the Black-Scholes option pricing model. The Black-Scholes option pricing model requires the input of subjective assumptions, including the expected term of the option and share price volatility. The expected term of options granted is determined based on historical data on the average hold period before exercise, expiry or cancellation. Expected volatility is estimated with reference to the historical volatility of the share price of the Company. These estimates involve inherent uncertainties and the application of management’s judgement. The costs of share-based payments are recognized over the vesting period of the option. The total amount recognized as an expense is adjusted to reflect the number of options expected to vest at each reporting date. At each reporting date prior to vesting, the cumulative compensation expense representing the extent to which the vesting period has passed and management’s best estimate of the share options that are ultimately expected to vest is computed. The movement in cumulative expense is recognized in earnings or loss with a corresponding entry to share-based payment reserve. Share-based payments to non-employees are measured at the fair value of the goods or services received or the fair value of the equity instruments issued if it is determined that the fair value of the goods or services cannot be reliably measured, and are recorded at the date the goods or services are received. No expense is recognized for share options that do not ultimately vest. Charges for share options that are forfeited before vesting are reversed from share-based payment reserve and credited to earnings or loss. For those share options that expire unexercised after vesting, the recorded value remains in share-based payment reserve. ii. Cash-settled awards Cash-settled awards are measured at fair value initially using the market value of the underlying shares on the day preceding the date of the grant of the award and are required to be remeasured to fair value at each reporting date until settlement. The cost is then recorded over the vesting period of the award. This expense, and any changes in the fair value of the award, is charged to earnings or loss. The cash-settled awards are recorded within liabilities until settled. The Company offers cash-settled awards (Deferred Share Units (“DSU”), Restricted Share Units (“RSU”), and Performance Share Units (“PSU”)) to certain employees and Directors of the Company. Deferred share units Under the DSU plan, each DSU has the same value as one common share listed on the TSX. DSUs will be retained until the Director leaves the Board, at which time the cash value of the DSUs is paid out. At each reporting date and on settlement, the liability is remeasured, with any change in fair value recorded as compensation expense in the period. Restricted share units Under the RSU plan, selected employees are granted RSUs where each RSU has a value equal to one common share listed on the TSX. RSUs fully vest at the end of three years and settle in cash at that time. A liability for the RSUs is measured at fair value and is adjusted for changes in fair value at each reporting period. At each reporting date and on settlement, the liability is remeasured, with any change in fair value recorded as compensation expense over the vesting period. Performance share units Under the PSU plan, selected employees are granted PSUs. PSUs fully vest at the end of a performance period and settle in cash at that time. Vesting, and therefore the liability, is based on the achievement of performance goals and target settlement. The value of each PSU reflects the value of a common share listed on the TSX and the expected target settlement percentage which is dependent on the underlying share’s relative performance against certain competitors and other internal financial performance measures. Therefore, the fair value of the PSUs is determined with reference to the closing stock price at each revaluation date multiplied by the target settlement percentage which is estimated using a Monte Carlo valuation model. A liability for the PSUs is measured at fair value and is adjusted for changes in fair value at each reporting period. At each reporting date and on settlement, the liability is remeasured, with any change in fair value recorded as compensation expense over the vesting period. j) Warrant liabilities Share purchase warrants are classified as a warrant liability under the principles of IAS 39 - Financial Instruments: Recognition and Measurement Financial Instruments: Presentation These types of share purchase warrants are recognized at fair value using the Black-Scholes option pricing model or the listed trading price at the date of issue. Share purchase warrants are initially recorded as a liability at fair value with any subsequent changes in fair value recognized in earnings or loss as finance expense. Upon exercise of the share purchase warrants with exercise prices in a currency other than the Company’s functional currency, the share purchase warrants are revalued at the date of exercise and the total fair value of the exercised share purchase warrants is reallocated to equity. The proceeds generated from the payment of the exercise price are also allocated to equity. k ) Issued capital Common shares are classified as issued capital. Costs directly attributable to the issue of common shares are recognized as a deduction from issued capital, net of any tax effects. l) Financial assets Financial assets, other than derivatives which are part of effective hedging arrangements, are classified as held to maturity, available-for-sale, loans and receivables or fair value through earnings or loss (“FVTPL”). Financial assets classified as available-for-sale are measured initially at fair value plus transaction costs and subsequently at fair value with unrealized gains and losses recognized in other comprehensive income except for financial assets that are considered to be impaired, in which case the impairment loss is charged to earnings or loss. The Company has not classified any assets as available-for-sale for any period presented. Financial assets classified as loans and receivables are measured initially at fair value plus transaction costs and subsequently at amortized cost using the effective interest method. The effective interest method is a method of calculating the amortized cost of a financial asset and allocating the interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial asset, or, where appropriate, a shorter period. The Company’s cash and cash equivalents, short-term investments, and trade and other receivables are classified as loans and receivables. Financial assets classified as FVTPL are measured on initial recognition and subsequently at fair value with unrealized gains and losses recognized in earnings or loss. Transaction costs are expensed for assets classified as FVTPL. m) Financial liabilities Financial liabilities, which are trade payables and accrued liabilities, vendor loan, equipment financing, and loan facility are initially recognized at fair value less directly attributable transaction costs. Subsequently, financial liabilities are measured at amortized cost using the effective interest method. Financial liabilities classified as FVTPL include financial liabilities held for trading and financial liabilities designated upon recognition as FVTPL. Fair value changes on these liabilities are recognized in earnings or loss. n) Impairment i. Impairment of financial assets At each reporting date, the Company assesses whether there is any objective evidence that a financial asset or a group of financial assets, other than financial assets classified as FVTPL, is impaired. A financial asset or a group of financial assets is impaired if there is objective evidence that the estimated future cash flows of the financial asset or the group of financial assets have been negatively impacted, and the impact can be reliably measured. Objective evidence of impairment could include the following: • significant financial difficulty of the issuer or counterparty; • default or delinquency in interest or principal payments; or, • it has become probable that the borrower will enter bankruptcy or financial reorganization. An impairment loss in respect of a financial asset measured at amortized cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the asset’s original effective interest rate. Losses are recognized in earnings or loss and reflected in an allowance account against trade and other receivables. Interest on the impaired asset continues to be recognized through the unwinding of the discount. With the exception of available-for-sale equity instruments, if, in a subsequent period, the amount of the impairment loss decreases, the previously recognized impairment loss is reversed through earnings or loss to the extent that the carrying amount of the impaired financial asset at the date the impairment is reversed does not exceed what the amortized cost would have been had the impairment not been recognized. In respect to available-for-sale equity instruments, impairment losses previously recognized in earnings or loss are not reversed through earnings or loss. Any increase in fair value subsequent to an impairment loss is recognized in other comprehensive income. ii. Impairment of non-financial assets At each reporting date, the Company reviews the carrying amounts of its non-financial assets to determine whether there are any indications of impairment. If any such indication exists such as decreases in metal prices, an increase in operating costs, a decrease in mineable reserves or a change in foreign exchange rate, the recoverable amount of the asset is estimated in order to determine the extent of the impairment, if any. In determining the recoverable amount, the Company also considers the net carrying amount of the asset, the ongoing costs required to maintain and operate the asset, and the use, value and condition of the asset. Where the asset does not generate cash inflows that are independent with other assets, the Company estimates the recoverable amount of the cash-generating unit (“CGU”) to which the asset belongs. A CGU is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or group of assets. This generally results in the Company evaluating its non-financial assets on a property by property basis. The recoverable amount is determined as the higher of fair value less costs of disposal and the asset’s value in use. Fair value is determined with reference to discounted estimated future cash flow analysis or to recent transactions involving dispositions of similar properties. In assessing value in use, the estimated future cash flows are discounted to their present value. The pre-tax discount rate applied to the estimated future cash flows measured on a value in use basis reflects current market assessments of the time value of money and the risks specific to the asset for which the future cash flow estimates have not been adjusted. If the carrying amount of an asset or CGU exceeds its recoverable amount, the carrying amount of the asset or CGU is reduced to its recoverable amount. An impairment loss is recognized as a charge to earnings or loss. Non-financial assets that have been impaired are tested for possible reversal of the impairment whenever events or changes in circumstance indicate that the impairment may have reversed. Where an impairment subsequently reverses, the carrying amount of the asset or CGU is increased to the revised estimate of its recoverable amount, but only so that the increased carrying amount does not exceed the carrying amount that would have been determined (net of depletion and depreciation) had no impairment loss been recognized for the asset or CGU in prior periods. A reversal of impairment is recognized as a gain in earnings or loss. o) Taxes i. Current tax expense Current tax is the expected tax payable or receivable on the taxable earnings or loss for the period. Current tax for each taxable entity in the Company is based on the local taxable income at the local statutory tax rate enacted or substantively enacted at the reporting date, and includes adjustments to tax payable or recoverable in respect of previous periods. ii. Deferred tax expense Deferred tax is accounted for using the balance sheet liability method, providing for the tax effect of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and their respective tax bases. Deferred tax liabilities are recognized for all taxable temporary differences except where the deferred tax liability arises from the initial recognition of goodwill, or the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting earnings nor taxable earnings or loss. Deferred tax assets are recognized for all deductible temporary differences, carry forwards of unused tax losses and tax credits, to the extent that it is probable that taxable earnings will be available against which the deductible temporary differences, and the carry forward of unused tax losses can be utilized, except where the deferred tax asset related to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting earnings nor taxable earnings or loss. The carrying amounts of deferred tax assets are reviewed at each reporting date and are adjusted to the extent that it is no longer probable that sufficient taxable earnings will be available to allow all or part of the asset to be utilized. To the extent that an asset not previously recognized fulfills the criteria for recognition, a deferred tax asset is recorded. Deferred tax is measured on an undiscounted basis using the tax rates that are expected to apply in the period when the liability is settled or the asset is realized, based on tax rates and tax laws enacted or substantially enacted at the reporting date. Current and deferred tax relating to items recognized directly in equity are recognized in equity and not in earnings or loss. iii. Mining taxes and royalties Mining taxes and certain royalties are treated and disclosed as current and deferred taxes if they have the characteristics of an income tax. This is considered to be the case when they are imposed under government authority and the amount payable is calculated by reference to a form of net income after adjustment for items comprising temporary differences. p) Earnings per share Basic earnings per share (“EPS”) is calculated by dividing the earnings and comprehensive income of the Company by the basic weighted average number of common shares outstanding during the period. For purposes of calculating diluted EPS, the proceeds from the potential exercise of dilutive share options and share purchase warrants with exercise prices that are below the average market price of the underlying shares are assumed to be used in purchasing the Company’s common shares at their average market price for the period. Share options and share purchase warrants are included in the calculation of diluted EPS only to the extent that the market price of the common shares exceeds the exercise price of the share options or share purchase warrants except where such conversion would be anti-dilutive. q) Borrowing costs Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. Qualifying assets include the cost of developing mineral properties and constructing new facilities. Borrowing costs are capitalized at the rate of interest applicable to the specific borrowings financing the assets under construction, or, where financed through general borrowings, at a capitalization rate representing the weighted average interest rate on such borrowings. Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization. All other borrowing costs are recognized in earnings or loss in the period in which they are incurred. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | 4. RECENT ACCOUNTING PRONOUNCEMENTS Certain pronouncements were issued by the International Accounting Standards Board (“IASB”) or the IFRS Interpretations Committee (“IFRIC”) that are mandatory for accounting periods after December 31, 2017. Pronouncements that are not applicable to the Company have been excluded from this note. The following pronouncements have been issued but are not yet effective: a) In July 2014, the IASB issued the final version of IFRS 9 - Financial Instruments Financial Instruments: Recognition and Measurement ‐ The following summarizes the expected impact on IFRS 9 upon adoption: • The classification of financial assets and liabilities is expected to remain consistent. The Company does not and does not expect to hold equity securities. • The introduction of the new “expected credit loss” impairment model is not expected to materially impact the Company, as the Company only sells to established commodity trading firms. • The reformed approach to hedge accounting is not expected to impact the Company, as the Company does not apply or expects to apply hedge accounting. b) In May 2014, the IASB issued IFRS 15 - Revenue from Contracts with Customers Construction Contracts Revenue Customer Loyalty Programmes Agreements for the Construction of Real Estate Transfers of Assets from Customers Revenue - Barter Transactions Involving Advertising Services The core principle of IFRS 15 is that revenue related to the transfer of promised goods or services should be recognized when the control of the goods or services passes to customers. The Company has evaluated the impact of applying IFRS 15, analyzing its doré sale agreements. The Company concluded there is no material change in the timing of revenue recognized under the new standard as the point of transfer of risk and reward for goods and services and transfer of control occur at the same time. In addition, IFRS 15 requires entities to apportion revenue earned from contracts to distinct performance obligations on a relative standalone selling price basis. The Company has evaluated its sales agreements and concluded delivery of individual doré shipments are the only performance obligations in the contracts and accordingly there will be no change in the amount or timing of revenue recognition under the new standard. IFRS 15 contains presentation and disclosure requirements which are more detailed than the current standards, many of which are completely new. Upon the adoption of IFRS 15, the Company will provide enhanced disclosures in relation to judgments as to when determining timing and measurement of revenue, however, based on the Company’s current operations, the balance of the new disclosures are not expected to materially impact the financial statements. c) In January 2016, the IASB published a new accounting standard, IFRS 16 - Leases Leases The Company does not have any material lease contracts. The adoption of IFRS 16 is not expected to have any material impact upon the date it become effective. |
Caballo Blanco Property Sale
Caballo Blanco Property Sale | 12 Months Ended |
Dec. 31, 2017 | |
Acquisitiondate Fair Value Of Total Consideration Transferred Abstract | |
Disclosure of Property Sale Explanatory | 5. CABALLO BLANCO PROPERTY SALE On July 20, 2016 (“closing date”), the Company sold the Caballo Blanco Property to Candelaria Mining Corp. Total consideration paid was $12,500 in cash and the assumption of the $5,000 (present value - $4,656) contingent liability payable to Goldgroup Mining Inc. This equates to a fair value of $17,156 on the closing date. The Company recorded a loss on disposal of $856. Prior to disposal, the property was classified as an asset held for sale and an impairment charge of $12,737 was recorded to reduce the carrying amount to its fair value. |
Impairment Or Impairment Revers
Impairment Or Impairment Reversal of Mineral Properties and Other Assets | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Impairment Loss And Reversal Of Impairment Loss [Abstract] | |
Impairment or Impairment Reversal of Mineral Properties and Other Assets | 6. IMPAIRMENT OR IMPAIRMENT REVERSAL OF MINERAL PROPERTIES AND OTHER ASSETS At the end of each reporting period, the Company assesses whether there are any indicators, from external and internal sources of information, to suggest that the carrying value of an asset or cash generating unit (“CGU”) may be impaired or require impairment reversal, thereby requiring adjustment to the carrying value. The Company did not identify any indicators of impairment or reversal of impairment during the year ended December 31, 2017. Year ended December 31, 2016 During the year ended December 31, 2016, in response to the sustained increase in the spot and forecast gold prices, combined with improved operations during the period, the Company announced significant changes to the San Francisco Mine plan, which foresaw continued operations to 2023 versus the previous plan which foresaw a curtailment of mining operations in late 2016. The significant extension of the expected life of the San Francisco Mine was considered to be an indicator of impairment reversal. A detailed assessment was completed on the recoverable value of the San Francisco Mine and related assets. As a result of this assessment, the Company recognized an impairment reversal in the amount of $23,699 increasing the mineral properties, plant and equipment value to its recoverable value. The recoverable value of the San Francisco Mine CGU was determined based on its fair value less cost of disposal estimated utilizing a discounted cash flow model. The projected cash flows used in recoverable value assessment are significantly affected by changes in assumptions for metal prices, changes in the amount of recoverable reserves, production costs estimates, future capital expenditures and discount rates. The discounted cash flow model is a Level 3 measurement in the fair value hierarchy. The key economic assumptions included in the model were a forecast gold price of $1,250 per ounce and discount rate of 6%. |
Expenses
Expenses | 12 Months Ended |
Dec. 31, 2017 | |
Expense By Nature [Abstract] | |
Expenses | 7. EXPENSES a) Cost of sales Years ended December 31, 2017 2016 Costs of contract mining $ 41,397 $ 39,337 Crushing and gold recovery costs 32,081 31,333 Mine site administration costs 5,534 3,809 Transport and refining 253 330 Royalties 527 623 Demobilization costs - 1,398 Change in inventories (9,974 ) (2,113 ) Production costs 69,818 74,717 Depreciation and depletion 4,641 14,299 Cost of sales (including depreciation and depletion) $ 74,459 $ 89,016 b) Corporate and administrative expenses Years ended December 31, Note 2017 2016 Salaries (1) $ 3,632 $ 3,315 Consulting and professional fees 1,956 2,015 Share-based payments 14b), 14c) 1,287 837 Rent and office costs 359 317 Administrative and other 1,403 1,123 Corporate and administrative expenses $ 8,637 $ 7,607 (1) During the year ended December 31, 2017, salaries include termination benefits of $708 (year ended December 31, 2016 - $44). a) Finance expense, net Years ended December 31, Note 2017 2016 (Gain) loss on revaluation of warrant liabilities 13 $ (1,338 ) $ 1,308 Accretion of provision for site reclamation and closure and other provisions 250 67 Offering expense 13 57 65 Interest on loan facility and equipment financing (1) 6 597 Accretion of loan facility (1) - 736 Accretion on extinguished liability - 141 Interest on debenture (2) - 43 Finance expense, net $ (1,025 ) $ 2,957 (1) On June 14, 2016, the Company repaid a $10,223 loan facility, including bonuses and accrued interest. The lenders optioned to receive cash bonuses of $274 and 55,000 common shares valued at $134. (2) On June 29, 2016, the Company settled a debenture with a cash payment of C$2,000 ($1,540) and remaining common share interest payments were settled. |
Trade and Other Receivables
Trade and Other Receivables | 12 Months Ended |
Dec. 31, 2017 | |
Trade And Other Current Receivables [Abstract] | |
Trade and Other Receivables | 8. TRADE AND OTHER RECEIVABLES Years ended December 31, Note 2017 2016 Trade receivable $ 1,019 $ 1,322 VAT receivable (1) 10,614 4,921 Receivable on Caballo Blanco Property sale 5 - 2,500 Other receivables (2) 59 156 $ 11,692 $ 8,899 (1) VAT receivable is value added tax payments made by the Company, which in Mexico and Canada are refundable. The Company elects to use VAT amounts owed to it to settle income tax instalments payable to the Mexican government. As a result, the Company currently pays no income tax cash instalments and receives reduced amounts of VAT cash refunds. During the year ended December 31, 2017, income tax instalments applied against VAT receivable were $7,582 (year ended December 31, 2016 - $nil). During the year ended December 31, 2017, the Company collected $8,246 (year ended December 31, 2016 - $16,027) of the VAT receivable. Subsequent to December 31, 2017, $1,887 of (2) Other receivables include an allowance of doubtful amounts of $nil (December 31, 2016 - $92). |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Inventories [Abstract] | |
Inventories | 9. INVENTORIES Years ended December 31, 2017 2016 Ore in process $ 16,764 $ 6,347 Finished metal inventory 383 - Supplies 4,837 3,988 $ 21,984 $ 10,335 The costs of inventories recognized as an expense for the year ended December 31, 2017, was $68,145 (year ended December 31, 2016 - $82,856) and are included in cost of sales as costs of contract mining, crushing and gold recovery costs, change in inventories and depreciation and depletion. |
Mineral Properties, Plant and E
Mineral Properties, Plant and Equipment, Exploration and Evaluation | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Mineral Properties Plant And Equipment Exploration And Evaluation [Abstract] | |
Mineral Properties, Plant and Equipment, Exploration and Evaluation | 10. MINERAL PROPERTIES, PLANT AND EQUIPMENT, EXPLORATION AND EVALUATION Note Mineral properties (1) Plant and equipment (2) Exploration and evaluation Total Cost At January 1, 2017 $ 176,503 $ 112,385 $ 84,190 $ 373,078 Expenditures 13,444 9,190 16,995 39,629 Change in reclamation obligation 12 723 - - 723 At December 31, 2017 190,670 121,575 101,185 413,430 Accumulated depreciation, depletion and impairment At January 1, 2017 157,856 92,243 8,678 258,777 Depreciation and depletion 4,179 1,350 - 5,529 At December 31, 2017 162,035 93,593 8,678 264,306 Carrying amount at December 31, 2017 $ 28,635 $ 27,982 $ 92,507 $ 149,124 Note Mineral properties (1) Plant and equipment (2) Exploration and evaluation Total Cost At January 1, 2016 $ 176,089 $ 104,361 $ 108,253 $ 388,703 Expenditures 1,303 8,024 5,839 15,166 Caballo Blanco Property sale 5 - - (29,902 ) (29,902 ) Change in reclamation obligation 12 (889 ) - - (889 ) At December 31, 2016 176,503 112,385 84,190 373,078 Accumulated depreciation, depletion and impairment At January 1, 2016 166,166 93,157 8,678 268,001 Depreciation and depletion 10,201 4,274 - 14,475 Impairment of exploration and evaluation 5 - - 12,737 12,737 Caballo Blanco Property sale 5 - - (12,737 ) (12,737 ) Impairment reversal of mineral properties, plant and equipment 6 (18,511 ) (5,188 ) - (23,699 ) At December 31, 2016 157,856 92,243 8,678 258,777 Carrying amount at December 31, 2016 $ 18,647 $ 20,142 $ 75,512 $ 114,301 (1) At December 31, 2017, mineral properties included deferred stripping costs with a carrying value of $9,582 (December 31, 2016 - $nil). (2) Plant and equipment includes construction-in-progress assets of $14,727 (December 31, 2016 - $13,590). a) Carrying amount by segment Mineral properties Plant and equipment Exploration and evaluation Total At December 31, 2017 San Francisco Mine $ 28,635 $ 13,791 $ 1,043 $ 43,469 Ana Paula Project - 14,041 91,464 105,505 Other - 150 - 150 $ 28,635 $ 27,982 $ 92,507 $ 149,124 Mineral properties Plant and equipment Exploration and evaluation Total At December 31, 2016 San Francisco Mine $ 18,647 $ 7,730 $ 496 $ 26,873 Ana Paula Project - 12,412 75,016 87,428 $ 18,647 $ 20,142 $ 75,512 $ 114,301 b) Mineral properties The San Francisco Mine is located in Santa Ana, Sonora, Mexico which is formed by several adjacent claims. Commercial production began at San Francisco in April 2010. c) Exploration and evaluation The Company holds and is exploring a number of mineral properties in Mexico which are included in exploration and evaluation. i. Ana Paula Project On May 26, 2015, the Company acquired Newstrike Capital Inc. (“Newstrike”) and its primary asset the Ana Paula Project in Guerrero, Mexico. ii. San Francisco Mine properties The Company has title to the Patricia, Norma, Los Carlos, Pima, and Dulce claims located in the state of Sonora, Mexico. |
Trade Payables and Accrued Liab
Trade Payables and Accrued Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Trade And Other Payables [Abstract] | |
Trade Payables and Accrued Liabilities | 11. TRADE PAYABLES AND ACCRUED LIABILITIES Years ended December 31, 2017 2016 Trade payables $ 17,699 $ 10,609 Income taxes payable 1,251 2,800 Accrued liabilities 4,121 2,053 Vendor loan 1,725 1,725 $ 24,796 $ 17,187 |
Provision for Site Reclamation
Provision for Site Reclamation and Closure | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Provision For Site Reclamation And Closure [Abstract] | |
Provision for Site Reclamation and Closure | 12. PROVISION FOR SITE RECLAMATION AND CLOSURE Balance at December 31, 2015 $ 3,981 Accretion of discounted cash flows 56 Change in estimated cash flows and assumptions (889 ) Balance at December 31, 2016 $ 3,148 Accretion of discounted cash flows 230 Change in estimated cash flows and assumptions 723 Balance at December 31, 2017 $ 4,101 The provision for site reclamation and closure consists of mine closure costs, reclamation and retirement obligations for mine facilities and infrastructure. During the year ended December 31, 2017, the Company completed its annual reassessment of the provision for site reclamation and closure based on an independent technical report. As a result of this reassessment, the provision was increased by $723 (December 31, 2016 - decrease in provision of $889). The total undiscounted amount of estimated cash flows required to settle the retirement obligations of the San Francisco Mine is $5,337 (December 31, 2016 - $4,195). The cash flows have been inflated by the rate of 3.5% (December 31, 2016 - 3.0%) and discounted using the pre-tax risk-free rate of 7.5% (December 31, 2016 - 7.3%). The provision for site reclamation and closure is not expected to be paid in the near term and is intended to be funded from cash balances at the time of the mine closure. |
Warrant Liability
Warrant Liability | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Classes Of Share Capital [Abstract] | |
Warrant Liability | 13. WARRANT LIABILITY The share purchase warrants are classified as a warrant liability under the principles of IAS 39 - Financial Instruments Recognition and Measurement Warrants December 31, Issuance Expiry Date TSX Ticker Exercise Price Warrants Issued Common Shares Upon Exercise 2017 2016 Bought deal July 20, 2017 (1) July 20, 2018 ALO.WT.A C$8.00 $6.36 4,031,000 4,031,000 4,031,000 - Bought deal November 30, 2016 (2) May 30, 2018 ALO.WT C$0.70 $0.52 18,200,000 1,820,000 18,200,000 18,200,000 Private placement October 19, 2015 (3) October 19, 2017 - C$3.50 $2.70 1,000,000 1,000,000 - 1,000,000 23,231,000 6,851,000 22,231,000 19,200,000 (1) On July 20, 2017, the Company closed a bought deal financing and issued 4,031,000 warrants. The warrant liability was initially valued at $801, determined by the TSX opening price of C$0.25 ($0.20). For the year ended December 31, 2017, offering expense related to the warrants was $57 (note 7(c)). (2) For the year ended December 31, 2016, offering expense related to the warrants was $65 (note 7(c)). (3) On October 18, 2017, the private placement warrants were exercised for cash proceeds of C$3,500 ($2,803) and the Company issued 1,000,000 common shares. The private placement warrant liability was reclassed to common shares at a value of C$1,670 ($1,338). The share purchase warrants were revalued to the following: Years ended December 31, 2017 2016 Bought deal July 20, 2017 (1) $ 305 $ - Bought deal November 30, 2016 (2) 290 1,220 Private placement October 19, 2015 - 1,251 $ 595 $ 2,471 (1) Valuation based on the TSX closing price of C$0.10 ($0.08). (2) Valuation based on the TSX closing price of C$0.02 ($0.02) (December 31, 2016 - C$0.09 ($0.07)). During the year ended December 31, 2017, the Company recognized the following (gain) loss on revaluation of the share purchase warrant liabilities (note 7(c)): Years ended December 31, 2017 2016 Bought deal July 20, 2017 $ (495 ) $ - Bought deal November 30, 2016 (930 ) 339 Private placement October 19, 2015 (1) 87 969 $ (1,338 ) $ 1,308 (1) Valuation based on the following weighted average assumptions for the Black-Scholes option pricing on the exercise date and December 31, 2016: October 18, December 31, 2017 2016 Risk-free interest rate 1.6 % 0.7 % Expected life of options - 0.8 years Annualized volatility 62.0 % 97.2 % Dividend rate 0.0 % 0.0 % |
Equity
Equity | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Equity | 14. EQUITY a) Authorized share capital • Unlimited number of common shares without par value. These shares have voting rights and their holders are entitled to receive dividend payments; and, • Unlimited number of convertible preference shares without par value, with the same rights as the common shares on dissolution and similar events. These shares have no voting rights and are not entitled to dividend payments. The Company had the following common share transactions during the year ended December 31, 2017: • The Company closed a bought deal financing and issued 8,062,000 common shares for gross proceeds of C$49,380 ($39,237), with transaction costs allocated to the equity component of C$3,523 ($2,799). • The Company issued 1,000,000 common shares valued at C$5,170 ($4,141) upon exercise of private placement warrants (note 13). • The Company issued 53,854 common shares valued at $214 upon exercise of share options. The Company had the following common share transactions during the year ended December 31, 2016: • The Company issued 30,193 common shares valued at $80 to settle debenture common share interest. • The Company issued 55,000 common shares valued at $134 to settle bonus payment on extinguishment of loan facility to Goldcorp Inc. • The Company issued 304,447 common shares valued at $848 in connection to termination benefits. • The Company closed a bought deal financing and issued 3,640,000 common shares for gross proceeds of C$18,837 ($14,030), with transaction costs allocated to the equity component of C$1,401 ($1,043). At December 31, 2017, there were 44,678,701 issued and outstanding common shares (December 31, 2016 - 35,562,847). The Company does not currently pay dividends and entitlement will only arise upon declaration. b) Share options The Company has an incentive share option plan (“the plan”) in place under which it is authorized to grant share options to executive officers, directors, employees and consultants. The plan allows the Company to grant share options up to a maximum of 10.0% of the number of issued shares of the Company. Share options granted under the plan will have a term not to exceed five years, have an exercise price not less than the Market Price as defined by the TSX Corporate Finance Manual and vest over periods no less than eighteen months. Share option transactions and the number of share options outstanding during the years ended December 31, 2017 and 2016, are summarized as follows: Number of share options Weighted average exercise price (C$) Outstanding at January 1, 2016 2,146,550 14.73 Granted 255,000 3.30 Expired (523,600 ) 21.37 Forfeited (92,500 ) 8.71 Outstanding at December 31, 2016 1,785,450 11.47 Granted 796,900 5.26 Exercised (60,000 ) 3.30 Expired (197,500 ) 25.72 Forfeited (190,000 ) 10.30 Outstanding at December 31, 2017 2,134,850 8.29 Exercisable at December 31, 2017 1,274,825 10.34 Share options outstanding and exercisable at December 31, 2017, are as follows: Exercise price range (C$) Number of options outstanding Weighted average exercise price (C$) Weighted average remaining life of options (years) Number of options exercisable Weighted average exercise price (C$) Weighted average remaining life of options (years) 2.50 - 10.00 1,695,750 5.49 3.51 835,725 5.73 2.82 10.01 - 20.00 336,500 15.43 1.64 336,500 15.43 1.64 20.01 - 31.40 102,600 31.20 3.61 102,600 31.20 3.61 2,134,850 8.29 3.22 1,274,825 10.34 2.57 The fair value of share options recognized as an expense during the year ended December 31, 2017, was $892 (year ended December 31, 2016 - $837) (note 7(b)). The weighted average grant date fair value of options granted during the year ended December 31, 2017, was C$3.07 ($2.36) (year ended December 31, 2016 - C$1.85 ($1.39). The following are the weighted average assumptions used for the Black-Scholes option pricing model valuation of share options granted during the years ended December 31, 2017 and 2016: Years ended December 31, 2017 2016 Risk-free interest rate 1.2 % 1.0 % Expected life of options 4.5 years 5.0 years Annualized volatility 75.4 % 73.0 % Forfeiture rate 2.2 % 2.2 % Dividend rate 0.0 % 0.0 % The risk-free rate of periods within the expected life of the share option is based on the Canadian government bond rate. The annualized volatility and forfeiture rate assumptions are based on historical results. c) Share-based compensation On September 13, 2017, the Board of Directors approved grants of deferred share units, restricted share units, and performance share units under its long-term incentive plan. DSU, RSU and PSU Activity DSUs (thousands) DSU Fair Value RSUs (thousands) RSU Fair Value PSUs (thousands) PSU Fair Value At January 1, 2016 - $ - - $ - - $ - At December 31, 2016 - $ - - $ - - $ - Granted 113 492 175 762 175 1,318 Change in value - (77 ) - (119 ) - (228 ) At December 31, 2017 113 $ 415 175 $ 643 175 $ 1,090 i) Deferred share units Directors were granted DSUs where each DSU has a value equivalent to the price of one common share listed on the TSX. The DSUs are settled in cash and fully vest the day before the 2018 Annual General Meeting. Cash settlement takes place following a Director’s resignation. For the year ended December 31, 2017, the carrying amount of DSUs outstanding and included in accrued liabilities was $189 and share-based payments expense related to the DSUs was $189 (year ended December 31, 2016 - $nil) (note 7(b)). ii) Restricted share units Selected employees were granted RSUs where each RSU has a value equivalent to the price of one common share listed on the TSX. The RSUs are settled in cash and fully vest on the three-year anniversary date, September 13, 2020. For the year ended December 31, 2017, the carrying amount of the RSUs outstanding and included in other liabilities was $64 and share-based payments expense related to the RSUs was $64 (year ended December 31, 2016 - $nil) (note 7(b)). iii) Performance share units Selected employees were granted PSUs where each PSU has a value equivalent to the price of one common share listed on the TSX. The PSUs are settled in cash and fully vest on December 31, 2019 (the “Performance Period”). Performance results at the end of the Performance Period relative to performance criteria and the application of a performance multiplier determines the vesting number of PSUs for each participant. Criteria is based on the Company’s share price performance in relation to its peer group. For the year ended December 31, 2017, the carrying amount of the PSUs outstanding and included in other liabilities was $142 and share-based payments expense related to the PSUs was $142 (year ended December 31, 2016 - $nil) (note 7(b)). |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Income Taxes [Abstract] | |
Income Taxes | 15. INCOME TAXES a) Rate reconciliation Income tax expense differs from the amount that would result by applying the combined Canadian federal and provincial income tax rates to earnings before income taxes. The following is a reconciliation of income taxes calculated at the combined Canadian federal and provincial statutory tax rate to the income tax expense for the years ended December 31, 2017 and 2016: Years ended December 31, 2017 2016 Earnings before income taxes $ 20,688 $ 35,970 Combined Canadian federal and provincial income tax rates 26.0 % 26.0 % Expected income tax expense 5,379 9,352 Items that cause an increase (decrease): Effect of different tax rates in foreign jurisdiction 748 1,605 Non-deductible expenses and Mexico inflation adjustments (199 ) 1,480 Foreign exchange (1,925 ) (1,114 ) Utilization of previously unrecognized tax losses - (8,278 ) Mexican special mining duty 1,105 971 Withholding taxes 424 470 Change in unrecognized deferred income tax assets 2,243 (1,266 ) Other 1,015 1,012 Income tax expense $ 8,790 $ 4,232 b) Deferred tax assets and liabilities The composition of the Company's net deferred income tax liabilities at December 31, 2017 and 2016 are as follows: December 31, 2017 December 31, 2016 Deferred tax assets: Provision for site reclamation and closure $ 1,427 $ 1,950 Non-capital losses - 1,723 1,427 3,673 Deferred tax liabilities: Mineral properties, plant and equipment, exploration and evaluation (5,186 ) (1,949 ) Mexican special mining duty (1,613 ) (740 ) Other (2,600 ) (4,338 ) (9,399 ) (7,027 ) Deferred tax liabilities, net $ (7,972 ) $ (3,354 ) The Company's unrecognized tax losses, deductible temporary differences, and tax credits at December 31, 2017 and 2016 are as follows: December 31, 2017 December 31, 2016 Non-capital losses $ 90,200 $ 82,645 Mineral properties, plant and equipment, exploration and evaluation 114 301 Share issuance costs 3,657 1,799 $ 93,971 $ 84,745 c) Non-capital losses At December 31, 2017, the Company has losses for income tax purposes in Canada and Mexico of $42,635 (December 31, 2016 - $38,144) and $55,977 (December 31, 2016 - $50,860), respectively, which may be used to reduce future taxable income. The Canadian losses, if not utilized, will expire beginning 2027 through to 2036, while the Mexican losses, if not utilized, will expire beginning 2018 through to 2027. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 16. EARNINGS PER SHARE Year ended December 31, 2017 Year ended December 31, 2016 Earnings the period Weighted average shares outstanding Earnings per share Earnings for the period Weighted average shares outstanding Earnings per share Basic EPS $ 11,898 39,409,369 $ 0.30 $ 31,738 32,098,930 $ 0.99 Effect of dilutive Share options - 172,570 - - 67,178 - Warrants - 275,304 - - 253,247 - Diluted EPS $ 11,898 39,857,243 $ 0.30 $ 31,738 32,419,355 $ 0.98 At December 31, 2017, 2,134,850 (December 31, 2016 - 1,785,450) share options were outstanding, of which 1,723,584 were anti-dilutive (December 31, 2016 - 1,577,950). At December 31, 2017, share purchase warrants that entitle the holders to purchase 5,851,000 (December 31, 2016 - 2,820,000) common shares were outstanding |
Supplemental Disclosure With Re
Supplemental Disclosure With Respect To Cash Flows | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Disclosure With Respect To Cash Flows [Abstract] | |
Supplemental Disclosure with Respect to Cash Flows | 17. SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS As at December 31, 2017, the Company held $31,474 of cash (December 31, 2016 - $20,045) and $nil of cash equivalents (December 31, 2016 - $13,832). Significant non-cash transactions were as follows: Years ended December 31, Note 2017 2016 Shares issued in lieu of termination benefits 14 $ - $ 848 Shares issued on loan extinguishment 14 $ - $ 134 Shares issued as payment of debenture interest 14 $ - $ 80 |
Financial Instruments And Risk
Financial Instruments And Risk Management | 12 Months Ended |
Dec. 31, 2017 | |
Financial Instruments And Risk Management [Abstract] | |
Financial Instruments and Risk Management | 18. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT a) Fair value measurement of financial assets and liabilities The Company has established a fair value hierarchy that reflects the significance of inputs of valuation techniques used in making fair value measurements as follows: Level 1 - quoted prices in active markets for identical assets or liabilities; Level 2 - inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. from derived prices); and, Level 3 - inputs for the asset or liability that are not based upon observable market data. At December 31, 2017 and 2016, none of the Company’s financial assets and liabilities are measured and recognized in the consolidated statement of financial position at fair value with the exception of the share purchase warrants (note 13) and derivative asset. The carrying values of cash and cash equivalents, short-term investments, trade and other receivables, trade payables, and vendor loan approximate their fair value due to their short-term nature. At December 31, 2017 and 2016, there were no financial assets or liabilities measured and recognized in the consolidated statement of financial b) Risk management The Company’s primary business activities consist of the acquisition, exploration, development and operation of mineral resource properties in Mexico. The Company examines the various financial risks to which it is exposed and assesses the impact and likelihood of occurrence. These risks may include credit risk, commodity price risk, currency risk, liquidity risk, and interest rate risk. The Company’s risk management program strives to evaluate the unpredictability of financial and commodity markets and its objective is to minimize the potential adverse effects of such risks on the Company’s financial performance, where financially feasible to do so. When deemed material, these risks may be monitored by the Company’s corporate finance group and they are regularly discussed with the Board of Directors or one of its committees. i. Credit risk Counterparty credit risk is the risk that the financial benefits of contracts with a specific counterparty will be lost if a counterparty defaults on its obligations under the contract. This includes any cash amounts owed to the Company by those counterparties, less any amounts owed to the counterparty by the Company where a legal right of set-off exists and also includes the fair values of contracts with individual counterparties which are recorded in the consolidated financial statements. The Company’s credit risk is predominantly limited to cash and cash equivalent balances held in financial institutions, the recovery of VAT receivable from the Mexican tax authorities, any gold and silver sales and related receivables and other receivables. The maximum exposure to the credit risk is equal to the carrying value of such financial assets. At December 31, 2017 and 2016, the Company expects to recover the full amount of such assets, less any allowance for doubtful accounts in trade and other receivables (note 8). The objective of managing counterparty credit risk is to minimize potential losses in financial assets. The Company assesses the quality of its counterparties, taking into account their credit worthiness and reputation, past performance and other factors. Cash and cash equivalents and short-term investments are only deposited with or held by major financial institutions where the Company conducts its business. In order to manage credit and liquidity risk, the Company invests only in highly rated investment grade instruments that have maturities of one year or less. Limits are also established based on the type of investment, the counterparty and the credit rating. Gold and silver sales are made to a limited number of large international organizations specializing in the precious metals markets. The Company believes them to be of sound credit worthiness, and to date, all receivables have been settled in accordance with agreed upon terms and conditions. The Mexican tax authorities with whom the Company holds a VAT receivable balance, are also deemed to be of sound credit worthiness. ii. Commodity price risks The Company is exposed to price risk associated with the volatility of the market price of commodities, in particular gold and silver, and also to many consumables that are used in the production of gold and silver. The prices of most commodities are determined in international markets and as such the Company has limited or no ability to control or predict the future level of most commodity prices. In some instances, the Company may have the ability to enter into derivative financial instruments to manage the Company’s exposure to changes in the price of commodities such as gold, silver, oil and electricity. As at December 31, 2017, the Company holds open option contracts whereby the Company purchased the option to sell gold ounces at a set price (“put option”) and financed the purchase price of this put option by selling the right to a third party to purchase a number of the Company’s gold ounces at a set price (“call option”). The Company has placed a minimum floor sales price and a maximum sales price on the ounces that are subject to these contracts. A total of 25,000 gold ounces were placed under these contracts with expiry dates through to May 29, 2018, with a weighted average floor price of $1,250 per gold ounce and a weighted average maximum sales price of $1,405 per gold ounce. At February 20, 2018, 20,000 of these option contracts were unsettled and 5,000 had expired. The fair value of the derivative asset of $21 (December 31, 2016 - $1,875) is based on the valuation of the outstanding gold option contracts using Level 2 inputs and valuation techniques. During the year ended December 31, 2017, nil call options and 5,000 put options were settled resulting in a derivative gain of $6 (December 31, 2016 - $128). Subsequent to December 31, 2017, a total of 35,000 gold ounces were placed under the above contracts with expiry dates through to December 27, 2018, with a weighted average floor price of $1,250 per gold ounce and a weighted average sales price of $1,456 per gold ounce. At February 20, 2018, all 35,000 options contracts were unsettled. iii. Currency risk The Company’s functional currency is the US dollar and therefore the Company’s earnings and comprehensive income are impacted by fluctuations in the value of foreign currencies in relation to the US dollar. The table below summarizes the net monetary assets and liabilities held in foreign currencies: December 31, 2017 December 31, 2016 Canadian dollar net monetary assets $ 4,173 $ 12,427 Mexican peso net monetary assets 5,403 2,306 $ 9,576 $ 14,733 The effect on earnings before income tax at December 31, 2017, of a 10.0% change in the foreign currencies against the US dollar on the above mentioned net monetary assets and liabilities of the Company is estimated to be an increase/decrease of $958 (December 31, 2016 - $1,473) assuming that all other variables remained constant. The calculations above are based on the Company’s statement of financial position exposure at December 31, 2017. iv. Liquidity risk Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company has a planning and budgeting process in place to help determine the funds required to support the Company’s normal operating requirements and its exploration and production plans. In the normal course of business, the Company enters into contracts and performs business activities that give rise to commitments for future minimum payments. The Company has no concentrations of liquidity risk. A summary of future operating commitments is presented in note 21. v. Interest rate risk The Company’s interest revenue earned on cash and short-term investments are exposed to interest rate risk. The Company does not enter into derivative contracts to manage this risk, and the Company’s exposure to interest rate risk is low as the Company has a fixed interest rate on the short-term investments. The Company has elected not to enter into interest rate swaps or other instruments to actively manage such risks. vi. Fair value disclosures At December 31, 2017 and 2016, none of the Company’s financial assets and liabilities are measured and recognized in the consolidated statement of financial position at fair value with the exception of the share purchase warrants (note 13), derivative asset, and cash-settled share based payments (note 14(c)). The carrying values of cash and cash equivalents, restricted cash, trade and other receivables, trade payables and accrued liabilities, equipment financing, vendor loan, loan facility, and the debenture approximate their fair value due to their short-term nature. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Transactions Between Related Parties [Abstract] | |
Related Party Transactions | 19. RELATED PARTY TRANSACTIONS The Company’s related parties include key management personnel and any transactions with such parties for goods and/or services are made on regular commercial terms and are considered to be at arm’s length. During the years ended December 31, 2017 and 2016, the Company did not enter into any transactions with related parties. Key management are those personnel having the authority and responsibility for planning, directing, and controlling the Company. Salaries and benefits, bonuses, share-based payments, and termination benefits are included in corporate and administrative expenses. Key management compensation includes: Years ended December 31, 2017 2016 Salaries and benefits $ 1,065 $ 881 Bonuses 387 1,008 Share-based payments 476 672 Termination benefits 385 - $ 2,313 $ 2,561 |
Management of Capital
Management of Capital | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Objectives Policies And Processes For Managing Capital [Abstract] | |
Management of Capital | 20. MANAGEMENT OF CAPITAL The Company’s objectives of capital management are intended to safeguard the Company’s normal operating requirements on an ongoing basis and the continued development and exploration of its mineral properties. At December 31, 2017, the capital of the Company consists of consolidated equity and equipment financing, net of cash and cash equivalents and short-term investments. December 31, 2017 December 31, 2016 Equity $ 196,585 $ 143,086 Equipment financing - 378 196,585 143,464 Less: Cash and cash equivalents (31,474 ) (33,877 ) Less: Short-term investments (20,082 ) - $ 145,029 $ 109,587 In order to facilitate the management of its capital requirements, the Company prepares expenditure budgets that are updated as necessary depending on various factors, including successful capital deployment and general industry conditions. The Company also has in place a planning, budgeting and forecasting process which is used to identify the amount of funds required to ensure the Company has appropriate liquidity to meet short and long-term operating objectives. In order to maintain or adjust its capital structure, the Company may issue new shares or debt. At December 31, 2017 and 2016, the Company was not subject to any externally imposed capital requirements. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Commitments And Contingencies [Abstract] | |
Commitments and Contingencies | 21. COMMITMENTS AND CONTINGENCIES A summary of undiscounted liabilities and future operating commitments at December 31, 2017, are as follows: Total Within 1 year 2 - 5 years Greater than 5 years Maturity analysis of financial liabilities Trade payables and accrued liabilities $ 24,796 $ 24,796 $ - $ - 24,796 24,796 - - Commitments Future operating commitments (1) (2) 265,629 63,778 201,851 - Provision for site reclamation and closure (3) 5,337 - - 5,337 Other provisions (4) 1,584 - - 1,584 272,550 63,778 201,851 6,921 Total financial liabilities and commitments $ 297,346 $ 88,574 $ 201,851 $ 6,921 (1) The future operating commitments of the Company are mainly due to the mining contract with Peal de Mexico, S.A. de C.V. (“Peal”). A four-year contract with Peal was signed effective December 21, 2017. The contract covers substantially all mining services at a fixed cost per tonne of material mined. The Peal commitment is based on the expected tonnage from 2018 to 2021. Operating commitments also include a guarantee provided by the Company for the office premises at its corporate office. (2) Contractual commitments are defined as agreements that are enforceable and legally binding. Certain of the contractual commitments may contain cancellation clauses; the Company discloses the contractual operating commitments based on management's intent to fulfil the contracts. (3) Provision for site reclamation and closure represents the undiscounted amount of the e stimated cash flows required to settle the retirement obligations of the San Francisco Mine. (4) Other provisions represent the undiscounted amount of the demobilization costs related to the Peal contract, whereby t he Company is responsible for demobilization costs payable one month prior to the end of the mining contract. This obligation has been recorded at an annualized discount rate of 2.3%, reflecting the implied interest rate, and calculated according to the formula stipulated in the contract. At December 31, 2017, this obligation was determined to be $1,380. Various tax and legal matters are outstanding from time to time. In the event that management’s estimate of the future resolution of these matters changes, the Company will recognize the effects of these changes in the consolidated financial statements in the period such changes occur. |
Segmented Information
Segmented Information | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Operating Segments [Abstract] | |
Segmented Information | 22. SEGMENTED INFORMATION Operating results of operating segments are reviewed by the Company's chief operating decision maker ("CODM") to make decisions about resources to be allocated to the segments and to assess their performance. During the year ended December 31, 2017, as a result of the changes in the Company’s management team and increased activity at the Ana Paula Project, the Company reassessed its operating segments. The Company has determined that it has two reportable operating segments, the San Francisco Mine and the Ana Paula Project. Other consists primarily of the Company’s corporate assets, derivative assets, warrant liabilities and corporate and administrative expenses which are not allocated to operating segments and the Caballo Blanco Property which was disposed of during the year ended December 31, 2016 (note 5). Prior period results have been represented to reflect the current presentation. A reporting • that engages in business activities from which it may earn revenues or incur expenses; • whose operating results are regularly reviewed by the Company’s chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance; and, • for which discrete financial information is available. The CODM evaluates segment performance based on earnings from operations and capital expenditures. The Company does not treat the production of gold and silver, the primary two minerals produced at the San Francisco Mine, as separate operating segments as they are the output of the same production process, only become separately identifiable as finished goods and are not reported separately from a management perspective. Year ended December 31, 2017 Segment results San Francisco Mine Ana Paula Project Other Total Metal revenues $ 105,162 $ - $ - $ 105,162 Production costs (69,818 ) - - (69,818 ) Depreciation and depletion (4,641 ) - - (4,641 ) Corporate and administrative expenses (2,047 ) - (6,590 ) (8,637 ) Earnings (loss) from operations $ 28,656 $ - $ (6,590 ) $ 22,066 Capital expenditures $ 20,909 $ 17,256 $ 163 $ 38,328 Year ended December 31, 2016 Segment results San Francisco Mine Ana Paula Project Other Total Metal revenues $ 123,873 $ - $ - $ 123,873 Production costs (74,717 ) - - (74,717 ) Depreciation and depletion (14,299 ) - - (14,299 ) Corporate and administrative expenses (2,085 ) - (5,522 ) (7,607 ) Impairment reversal of mineral properties and other assets 23,699 - - 23,699 Other - - (13,593 ) (13,593 ) Earnings (loss) from operations $ 56,471 $ - $ (19,115 ) $ 37,356 Capital expenditures $ 5,647 $ 13,154 $ 178 $ 18,979 Segment assets and liabilities San Francisco Mine Ana Paula Project Other Total As at December 31, 2017 Total assets $ 89,612 $ 107,196 $ 38,827 $ 235,635 Total liabilities $ 33,577 $ 3,028 $ 2,445 $ 39,050 As at December 31, 2016 Total assets $ 64,008 $ 88,427 $ 18,408 $ 170,843 Total liabilities $ 22,249 $ 1,791 $ 3,717 $ 27,757 During the years ended December 31, 2017 and 2016, the Company had sales agreements with three major customers. The percentage breakdown of metal revenues by major customer is as follows: Years ended December 31, 2017 2016 Customer A 94 % 95 % Customer B 5 % 4 % Customer C 1 % 1 % Total 100 % 100 % Due to the nature of the gold market, the Company is not dependent on any customers to sell finished goods. The Company’s metal revenues from operations, 100% of which are derived in Mexico, for the years ended December 31, 2017 and 2016, are as follows: Years ended December 31, 2017 2016 Gold $ 104,510 $ 122,916 Silver by-product 652 957 $ 105,162 $ 123,873 |
Significant Accounting Polici28
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Significant Accounting Policies [Abstract] | |
Basis of consolidation | a) Basis of consolidation These consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries disclosed in note 1. All inter-company balances, transactions, revenues and expenses have been eliminated on consolidation. Control exists where the parent entity has power over the investee and is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Subsidiaries are included in the consolidated financial statements from the date control commences until the date control ceases. |
Foreign currency translation | b) Foreign currency translation In preparing the financial statements of each individual group entity, transactions in currencies other than the entity's functional currency (“foreign currencies”) are translated at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary assets and liabilities denominated in foreign currencies are translated at the exchange rates prevailing at that date. Exchange gains and losses are recognized on a net basis in earnings or loss from operations for the period. |
Cash and cash equivalents and restricted cash | c) Cash and cash equivalents and restricted cash Cash and cash equivalents and restricted cash in the statements of financial position are comprised of cash and highly liquid investments having maturity dates of three months or less from the date of purchase, which are readily convertible into known amounts of cash. |
Short-term investments | d) Short-term investments Short-term investments are investments in Guaranteed Investment Certificates (“GICs”), which are current in nature, with an original maturity greater than three months. |
Revenue recognition | e) Revenue recognition Metal revenues are earned from the sale of refined metal (primarily gold and silver by-product) and are recognized when significant risks and rewards of ownership have passed to the buyer, it is probable that economic benefits associated with the transaction will flow to the Company, the sale price can be measured reliably, the Company has no significant continuing involvement, and the costs incurred or to be incurred in respect of the transaction can be measured reliably. Metal revenues are subject to adjustment upon final settlement based upon metal prices, weights and assays. These adjustments are recorded within metal revenues. |
Inventories | f) Inventories The Company predominantly produces gold and silver by-product. Inventories consist of ore in process, finished metal inventory (doré), and operational supplies. Doré represents a bar containing predominantly gold by value which must be refined into its saleable metals. These inventories are valued at the lower of cost and net realizable value (“NRV”) after consideration of additional processing, refining and transportation costs. NRV represents the estimated future sales price of the product based on prevailing and long-term metals prices, less the estimated costs to complete production and bring the product to saleable form. Write-downs of inventory are recognized in earnings or loss from operations as incurred. The Company reverses write-downs in the event that there is a subsequent increase in NRV. i. Ore in process The recovery of gold and silver from the ore is achieved through heap leaching processes. Costs are added to ore on leach pads based on current mining and processing costs, including applicable overhead, depletion and depreciation relating to mining operations. Costs are removed from ore on leach pads as ounces are recovered, based on the average cost per ounce of recoverable gold in ore in process inventory. ii. Finished metal inventory Finished metal inventory consists of doré bars containing gold and silver. iii. Supplies Supplies include consumables used in operations such as fuel, grinding material, chemicals, and spare parts. NRV is estimated as replacement cost. Major spare parts and standby equipment are included in plant and equipment when they meet the definition of property, plant and equipment. |
Mineral properties, plant and equipment, exploration and evaluation | g) Mineral properties, plant and equipment, exploration and evaluation i. Mineral property development costs Mineral property development costs, including reclassified mineral property acquisition costs and capitalized exploration and evaluation costs, are stated at cost less accumulated depletion and accumulated impairment losses. Costs associated with the commissioning of new assets, net of incidental revenues, are capitalized as mineral property costs in the period before they are operating in the manner intended by management. The Company capitalizes the cost of acquiring, maintaining, exploring, and developing mineral properties until such time as the properties are placed into production, abandoned, sold or considered to be impaired in value. Costs of producing properties are amortized using the UOP method based on estimated proven and probable reserves forecast to be extracted over the life of the mine and the costs of abandoned properties are written off in the period in which that decision is made by management. Proceeds received on the sale of interests in mineral properties are credited to the carrying value of the mineral properties, with any excess included in earnings or loss as incurred. Write-offs due to impairment in value are charged to earnings or loss as incurred. In open pit mining operations, it is necessary to remove overburden and other waste in order to access the ore body. Stripping costs incurred prior to commercial production are capitalized and deferred as part of the cost of constructing the mine. Mining costs associated with stripping activities during the production phase of a mine are variable production costs that are included in the costs of the inventory during the period that the stripping costs are incurred, unless the stripping activity can be shown to represent future benefits to the mineral property, in which case stripping costs are capitalized. Future benefits to the mineral property are demonstrated when stripping activity results in either immediate usable ore to produce finished gold doré bar inventory or improved access to sources of gold reserves that will be produced in future periods that would otherwise not have been accessible. Stripping activity occurs on separately identifiable components of the open pit and the amount capitalized is calculated by multiplying the tonnes removed for stripping purposes from each identifiable component during the period by the mining cost per tonne. The Company includes stripping costs in its production costs using a strip ratio based on tonnes of material removed compared to the estimated strip ratio per each separately identifiable component. Periods where the actual strip ratio for the identifiable component exceeded the average life of phase strip ratio for that component resulted in deferral of the excess stripping costs as an asset recorded within mineral properties (note 10). ii. Plant and equipment Plant and equipment is measured at cost less accumulated depreciation and impairment losses. Cost includes the purchase price, any costs directly attributable to bringing plant and equipment to the location and condition necessary for it to be capable of operating in the manner intended by management and the estimated site reclamation and closure costs associated with removing the asset, and, where applicable, borrowing costs. Upon sale or abandonment of any plant and equipment, the cost and related accumulated depreciation and impairment losses are written off and any gains or losses thereon are recognized in earnings or loss for the period. When the parts of an item of plant and equipment have different useful lives, they are accounted for as separate items (major components) of plant and equipment. The cost of replacing or overhauling a component of an item of plant and equipment is recognized in the carrying amount of the item if it is probable that the future economic benefits embodied within the component will flow to the Company and its cost can be measured reliably. The carrying amount of the replaced component is derecognized. Maintenance and repairs of a routine nature are charged to earnings or loss as incurred. iii. Exploration and evaluation costs Acquisition costs for exploration and evaluation stage properties are capitalized. Exploration and evaluation expenditures incurred on a mineral property are capitalized where management determines there is sufficient evidence that the expenditure will result in a future economic benefit to the Company. All other exploration and evaluation expenditures are expensed as incurred. Exploration and evaluation expenditures comprise costs that are directly attributable to: • researching and analyzing existing exploration data; • conducting geological studies, exploratory drilling and sampling; • examining and testing extraction and treatment methods; and, • activities in relation to evaluating the technical feasibility and commercial viability of extracting a mineral resource. Subsequent to completion of a positive economic analysis on a mineral property, capitalized acquisition costs and exploration and evaluation expenditures are reclassified to mineral properties. The Company is in the process of exploring and developing many of its exploration and evaluation properties and has not yet determined the amount of reserves available. Management reviews the carrying value of mineral properties at each reporting date and will recognize impairment in value based upon current exploration results, the prospect of further work being carried out by the Company, the assessment of future probability of profitable revenues from the property, or from the sale of the property. Amounts shown for properties represent costs incurred net of impairments and recoveries. iv. Depletion and depreciation Mineral property costs, including deferred stripping costs, are depreciated when commercial production begins using the UOP method based on estimated proven and probable reserves. Plant and equipment, including major components, are depreciated using the following depreciation methods and rates for the year ended December 31, 2017: Computer equipment 30% straight line method Leasehold improvements 20% straight line method Office furniture and equipment 10% straight line method Vehicles 25% straight line method Mine equipment and buildings UOP method Plant and equipment UOP method From October 1, 2015, to September 30, 2016, as a result of the impairment (note 6(b)), the expected life of plant and equipment at the San Francisco Mine was revised to align to the updated mine plan. The associated depreciation rates were updated as follows, with no changes in the depreciation method: Computer equipment 33% straight line method Leasehold improvements 33% straight line method Office furniture and equipment 33% straight line method Vehicles 33% straight line method Mine equipment and buildings UOP method Plant and equipment UOP method Effective October 1, 2016, as a result of the impairment reversal (note 6), the expected life of plant and equipment at the San Francisco Mine was revised to align with depreciation rates above which remained in place for the year ended December 31, 2017. Depreciation commences on the date the asset is available for use. |
Provisions | h) Provisions A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably and it is probable that an outflow of economic benefits will be required to settle the obligation. Constructive obligations are obligations that derive from the Company’s actions where: • by an established pattern of past practice, published policies or a sufficiently specific current statement, the Company has indicated to other parties that it will accept certain responsibilities; and, • as a result, the Company has created a valid expectation on the part of those other parties that it will discharge those responsibilities. Provisions are reviewed at the end of each reporting period and adjusted to reflect management’s current best estimate of the expenditure required to settle the present obligation at the end of the reporting period. If it is no longer probable that an outflow of resources embodying economic benefits will be required to settle the obligation, the provision is reversed. Provisions are reduced by actual expenditures for which the provision was originally recognized. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects the current market assessments of the time value of money and the risks specific to the liability. The accretion of the discount is charged to earnings or loss for the period. Provision for site reclamation and closure The Company’s mining and exploration activities are subject to various laws and regulations governing the protection of the environment. The Company records the fair value of a provision for site reclamation and closure as a liability in the period in which it incurred a legal or constructive obligation associated with the reclamation of the mine site and the retirement of tangible long-lived assets that result from the acquisition, construction, development, and/or normal use of the assets. The obligation is measured initially at present value based on estimated future cash flows derived using internal information and third party reports. The estimated cost is capitalized and included in the carrying value of the related mineral properties and is depreciated The provision is initially discounted using a current market-based pre-tax discount rate and subsequently increased for the unwinding of the discount. The unwinding of the discount is charged to earnings or loss for the period. At each reporting date, the Company reviews its provision for site reclamation and closure to reflect the current best estimate. The provision for site reclamation and closure is adjusted for changes in factors such as the amount or timing of the expected underlying cash flows, or the market-based pre-tax discount rate, with the offsetting amount recorded to the site reclamation and closure asset included in mineral properties which arises at the time of establishing the provision. The site reclamation and closure asset is depreciated |
Share-based payments | i) Share-based payments i. Equity-settled awards Certain employees and directors of the Company receive a portion of their remuneration in the form of share options. The fair value of the share options, determined at the date of the grant, is charged to earnings or loss, with an offsetting credit to share-based payment reserve, over the vesting period. If and when the share options are exercised, the applicable original amounts of share-based payment reserve are transferred to issued capital. The fair value of a share-based payment is determined at the date of the grant. The estimated fair value of share options is measured using the Black-Scholes option pricing model. The Black-Scholes option pricing model requires the input of subjective assumptions, including the expected term of the option and share price volatility. The expected term of options granted is determined based on historical data on the average hold period before exercise, expiry or cancellation. Expected volatility is estimated with reference to the historical volatility of the share price of the Company. These estimates involve inherent uncertainties and the application of management’s judgement. The costs of share-based payments are recognized over the vesting period of the option. The total amount recognized as an expense is adjusted to reflect the number of options expected to vest at each reporting date. At each reporting date prior to vesting, the cumulative compensation expense representing the extent to which the vesting period has passed and management’s best estimate of the share options that are ultimately expected to vest is computed. The movement in cumulative expense is recognized in earnings or loss with a corresponding entry to share-based payment reserve. Share-based payments to non-employees are measured at the fair value of the goods or services received or the fair value of the equity instruments issued if it is determined that the fair value of the goods or services cannot be reliably measured, and are recorded at the date the goods or services are received. No expense is recognized for share options that do not ultimately vest. Charges for share options that are forfeited before vesting are reversed from share-based payment reserve and credited to earnings or loss. For those share options that expire unexercised after vesting, the recorded value remains in share-based payment reserve. ii. Cash-settled awards Cash-settled awards are measured at fair value initially using the market value of the underlying shares on the day preceding the date of the grant of the award and are required to be remeasured to fair value at each reporting date until settlement. The cost is then recorded over the vesting period of the award. This expense, and any changes in the fair value of the award, is charged to earnings or loss. The cash-settled awards are recorded within liabilities until settled. The Company offers cash-settled awards (Deferred Share Units (“DSU”), Restricted Share Units (“RSU”), and Performance Share Units (“PSU”)) to certain employees and Directors of the Company. Deferred share units Under the DSU plan, each DSU has the same value as one common share listed on the TSX. DSUs will be retained until the Director leaves the Board, at which time the cash value of the DSUs is paid out. At each reporting date and on settlement, the liability is remeasured, with any change in fair value recorded as compensation expense in the period. Restricted share units Under the RSU plan, selected employees are granted RSUs where each RSU has a value equal to one common share listed on the TSX. RSUs fully vest at the end of three years and settle in cash at that time. A liability for the RSUs is measured at fair value and is adjusted for changes in fair value at each reporting period. At each reporting date and on settlement, the liability is remeasured, with any change in fair value recorded as compensation expense over the vesting period. Performance share units Under the PSU plan, selected employees are granted PSUs. PSUs fully vest at the end of a performance period and settle in cash at that time. Vesting, and therefore the liability, is based on the achievement of performance goals and target settlement. The value of each PSU reflects the value of a common share listed on the TSX and the expected target settlement percentage which is dependent on the underlying share’s relative performance against certain competitors and other internal financial performance measures. Therefore, the fair value of the PSUs is determined with reference to the closing stock price at each revaluation date multiplied by the target settlement percentage which is estimated using a Monte Carlo valuation model. A liability for the PSUs is measured at fair value and is adjusted for changes in fair value at each reporting period. At each reporting date and on settlement, the liability is remeasured, with any change in fair value recorded as compensation expense over the vesting period. |
Warrant liabilities | j) Warrant liabilities Share purchase warrants are classified as a warrant liability under the principles of IAS 39 - Financial Instruments: Recognition and Measurement Financial Instruments: Presentation These types of share purchase warrants are recognized at fair value using the Black-Scholes option pricing model or the listed trading price at the date of issue. Share purchase warrants are initially recorded as a liability at fair value with any subsequent changes in fair value recognized in earnings or loss as finance expense. Upon exercise of the share purchase warrants with exercise prices in a currency other than the Company’s functional currency, the share purchase warrants are revalued at the date of exercise and the total fair value of the exercised share purchase warrants is reallocated to equity. The proceeds generated from the payment of the exercise price are also allocated to equity. |
Issued capital | k ) Issued capital Common shares are classified as issued capital. Costs directly attributable to the issue of common shares are recognized as a deduction from issued capital, net of any tax effects. |
Financial assets | l) Financial assets Financial assets, other than derivatives which are part of effective hedging arrangements, are classified as held to maturity, available-for-sale, loans and receivables or fair value through earnings or loss (“FVTPL”). Financial assets classified as available-for-sale are measured initially at fair value plus transaction costs and subsequently at fair value with unrealized gains and losses recognized in other comprehensive income except for financial assets that are considered to be impaired, in which case the impairment loss is charged to earnings or loss. The Company has not classified any assets as available-for-sale for any period presented. Financial assets classified as loans and receivables are measured initially at fair value plus transaction costs and subsequently at amortized cost using the effective interest method. The effective interest method is a method of calculating the amortized cost of a financial asset and allocating the interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial asset, or, where appropriate, a shorter period. The Company’s cash and cash equivalents, short-term investments, and trade and other receivables are classified as loans and receivables. Financial assets classified as FVTPL are measured on initial recognition and subsequently at fair value with unrealized gains and losses recognized in earnings or loss. Transaction costs are expensed for assets classified as FVTPL. |
Financial liabilities | m) Financial liabilities Financial liabilities, which are trade payables and accrued liabilities, vendor loan, equipment financing, and loan facility are initially recognized at fair value less directly attributable transaction costs. Subsequently, financial liabilities are measured at amortized cost using the effective interest method. Financial liabilities classified as FVTPL include financial liabilities held for trading and financial liabilities designated upon recognition as FVTPL. Fair value changes on these liabilities are recognized in earnings or loss. |
Impairment | n) Impairment i. Impairment of financial assets At each reporting date, the Company assesses whether there is any objective evidence that a financial asset or a group of financial assets, other than financial assets classified as FVTPL, is impaired. A financial asset or a group of financial assets is impaired if there is objective evidence that the estimated future cash flows of the financial asset or the group of financial assets have been negatively impacted, and the impact can be reliably measured. Objective evidence of impairment could include the following: • significant financial difficulty of the issuer or counterparty; • default or delinquency in interest or principal payments; or, • it has become probable that the borrower will enter bankruptcy or financial reorganization. An impairment loss in respect of a financial asset measured at amortized cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the asset’s original effective interest rate. Losses are recognized in earnings or loss and reflected in an allowance account against trade and other receivables. Interest on the impaired asset continues to be recognized through the unwinding of the discount. With the exception of available-for-sale equity instruments, if, in a subsequent period, the amount of the impairment loss decreases, the previously recognized impairment loss is reversed through earnings or loss to the extent that the carrying amount of the impaired financial asset at the date the impairment is reversed does not exceed what the amortized cost would have been had the impairment not been recognized. In respect to available-for-sale equity instruments, impairment losses previously recognized in earnings or loss are not reversed through earnings or loss. Any increase in fair value subsequent to an impairment loss is recognized in other comprehensive income. ii. Impairment of non-financial assets At each reporting date, the Company reviews the carrying amounts of its non-financial assets to determine whether there are any indications of impairment. If any such indication exists such as decreases in metal prices, an increase in operating costs, a decrease in mineable reserves or a change in foreign exchange rate, the recoverable amount of the asset is estimated in order to determine the extent of the impairment, if any. In determining the recoverable amount, the Company also considers the net carrying amount of the asset, the ongoing costs required to maintain and operate the asset, and the use, value and condition of the asset. Where the asset does not generate cash inflows that are independent with other assets, the Company estimates the recoverable amount of the cash-generating unit (“CGU”) to which the asset belongs. A CGU is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or group of assets. This generally results in the Company evaluating its non-financial assets on a property by property basis. The recoverable amount is determined as the higher of fair value less costs of disposal and the asset’s value in use. Fair value is determined with reference to discounted estimated future cash flow analysis or to recent transactions involving dispositions of similar properties. In assessing value in use, the estimated future cash flows are discounted to their present value. The pre-tax discount rate applied to the estimated future cash flows measured on a value in use basis reflects current market assessments of the time value of money and the risks specific to the asset for which the future cash flow estimates have not been adjusted. If the carrying amount of an asset or CGU exceeds its recoverable amount, the carrying amount of the asset or CGU is reduced to its recoverable amount. An impairment loss is recognized as a charge to earnings or loss. Non-financial assets that have been impaired are tested for possible reversal of the impairment whenever events or changes in circumstance indicate that the impairment may have reversed. Where an impairment subsequently reverses, the carrying amount of the asset or CGU is increased to the revised estimate of its recoverable amount, but only so that the increased carrying amount does not exceed the carrying amount that would have been determined (net of depletion and depreciation) had no impairment loss been recognized for the asset or CGU in prior periods. A reversal of impairment is recognized as a gain in earnings or loss. |
Taxes | o) Taxes i. Current tax expense Current tax is the expected tax payable or receivable on the taxable earnings or loss for the period. Current tax for each taxable entity in the Company is based on the local taxable income at the local statutory tax rate enacted or substantively enacted at the reporting date, and includes adjustments to tax payable or recoverable in respect of previous periods. ii. Deferred tax expense Deferred tax is accounted for using the balance sheet liability method, providing for the tax effect of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and their respective tax bases. Deferred tax liabilities are recognized for all taxable temporary differences except where the deferred tax liability arises from the initial recognition of goodwill, or the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting earnings nor taxable earnings or loss. Deferred tax assets are recognized for all deductible temporary differences, carry forwards of unused tax losses and tax credits, to the extent that it is probable that taxable earnings will be available against which the deductible temporary differences, and the carry forward of unused tax losses can be utilized, except where the deferred tax asset related to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting earnings nor taxable earnings or loss. The carrying amounts of deferred tax assets are reviewed at each reporting date and are adjusted to the extent that it is no longer probable that sufficient taxable earnings will be available to allow all or part of the asset to be utilized. To the extent that an asset not previously recognized fulfills the criteria for recognition, a deferred tax asset is recorded. Deferred tax is measured on an undiscounted basis using the tax rates that are expected to apply in the period when the liability is settled or the asset is realized, based on tax rates and tax laws enacted or substantially enacted at the reporting date. Current and deferred tax relating to items recognized directly in equity are recognized in equity and not in earnings or loss. iii. Mining taxes and royalties Mining taxes and certain royalties are treated and disclosed as current and deferred taxes if they have the characteristics of an income tax. This is considered to be the case when they are imposed under government authority and the amount payable is calculated by reference to a form of net income after adjustment for items comprising temporary differences. |
Earnings per share | p) Earnings per share Basic earnings per share (“EPS”) is calculated by dividing the earnings and comprehensive income of the Company by the basic weighted average number of common shares outstanding during the period. For purposes of calculating diluted EPS, the proceeds from the potential exercise of dilutive share options and share purchase warrants with exercise prices that are below the average market price of the underlying shares are assumed to be used in purchasing the Company’s common shares at their average market price for the period. Share options and share purchase warrants are included in the calculation of diluted EPS only to the extent that the market price of the common shares exceeds the exercise price of the share options or share purchase warrants except where such conversion would be anti-dilutive. |
Borrowing costs | q) Borrowing costs Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. Qualifying assets include the cost of developing mineral properties and constructing new facilities. Borrowing costs are capitalized at the rate of interest applicable to the specific borrowings financing the assets under construction, or, where financed through general borrowings, at a capitalization rate representing the weighted average interest rate on such borrowings. Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization. All other borrowing costs are recognized in earnings or loss in the period in which they are incurred. |
Significant Accounting Polici29
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Significant Accounting Policies [Abstract] | |
Schedule of Depreciation Methods and Rates of Plant and Equipment | Plant and equipment, including major components, are depreciated using the following depreciation methods and rates for the year ended December 31, 2017: Computer equipment 30% straight line method Leasehold improvements 20% straight line method Office furniture and equipment 10% straight line method Vehicles 25% straight line method Mine equipment and buildings UOP method Plant and equipment UOP method From October 1, 2015, to September 30, 2016, as a result of the impairment (note 6(b)), the expected life of plant and equipment at the San Francisco Mine was revised to align to the updated mine plan. The associated depreciation rates were updated as follows, with no changes in the depreciation method: Computer equipment 33% straight line method Leasehold improvements 33% straight line method Office furniture and equipment 33% straight line method Vehicles 33% straight line method Mine equipment and buildings UOP method Plant and equipment UOP method |
Expenses (Tables)
Expenses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Expense By Nature [Abstract] | |
Schedule of Cost of Sales | a) Cost of sales Years ended December 31, 2017 2016 Costs of contract mining $ 41,397 $ 39,337 Crushing and gold recovery costs 32,081 31,333 Mine site administration costs 5,534 3,809 Transport and refining 253 330 Royalties 527 623 Demobilization costs - 1,398 Change in inventories (9,974 ) (2,113 ) Production costs 69,818 74,717 Depreciation and depletion 4,641 14,299 Cost of sales (including depreciation and depletion) $ 74,459 $ 89,016 |
Summary of Corporate and Administrative Expenses | a) Corporate and administrative expenses Years ended December 31, Note 2017 2016 Salaries (1) $ 3,632 $ 3,315 Consulting and professional fees 1,956 2,015 Share-based payments 14b), 14c) 1,287 837 Rent and office costs 359 317 Administrative and other 1,403 1,123 Corporate and administrative expenses $ 8,637 $ 7,607 (1) During the year ended December 31, 2017, salaries include termination benefits of $708 (year ended December 31, 2016 - $44). |
Summary of Finance Expense, Net | a) Finance expense, net Years ended December 31, Note 2017 2016 (Gain) loss on revaluation of warrant liabilities 13 $ (1,338 ) $ 1,308 Accretion of provision for site reclamation and closure and other provisions 250 67 Offering expense 13 57 65 Interest on loan facility and equipment financing (1) 6 597 Accretion of loan facility (1) - 736 Accretion on extinguished liability - 141 Interest on debenture (2) - 43 Finance expense, net $ (1,025 ) $ 2,957 (1) On June 14, 2016, the Company repaid a $10,223 loan facility, including bonuses and accrued interest. The lenders optioned to receive cash bonuses of $274 and 55,000 common shares valued at $134. (2) On June 29, 2016, the Company settled a debenture with a cash payment of C$2,000 ($1,540) and remaining common share interest payments were settled. |
Trade and Other Receivables (Ta
Trade and Other Receivables (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Trade And Other Current Receivables [Abstract] | |
Summary of Detailed Information about Trade and Other Receivables | Years ended December 31, Note 2017 2016 Trade receivable $ 1,019 $ 1,322 VAT receivable (1) 10,614 4,921 Receivable on Caballo Blanco Property sale 5 - 2,500 Other receivables (2) 59 156 $ 11,692 $ 8,899 (1) VAT receivable is value added tax payments made by the Company, which in Mexico and Canada are refundable. The Company elects to use VAT amounts owed to it to settle income tax instalments payable to the Mexican government. As a result, the Company currently pays no income tax cash instalments and receives reduced amounts of VAT cash refunds. During the year ended December 31, 2017, income tax instalments applied against VAT receivable were $7,582 (year ended December 31, 2016 - $nil). During the year ended December 31, 2017, the Company collected $8,246 (year ended December 31, 2016 - $16,027) of the VAT receivable. Subsequent to December 31, 2017, $1,887 of (2) Other receivables include an allowance of doubtful amounts of $nil (December 31, 2016 - $92). |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Inventories [Abstract] | |
Summary of Inventories | Years ended December 31, 2017 2016 Ore in process $ 16,764 $ 6,347 Finished metal inventory 383 - Supplies 4,837 3,988 $ 21,984 $ 10,335 |
Mineral Properties, Plant and33
Mineral Properties, Plant and Equipment, Exploration and Evaluation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Mineral Properties Plant And Equipment Exploration And Evaluation [Abstract] | |
Schedule of Reconciliation of Changes in Mineral Properties, Plant and Equipment, Exploration and Evaluation | Note Mineral properties (1) Plant and equipment (2) Exploration and evaluation Total Cost At January 1, 2017 $ 176,503 $ 112,385 $ 84,190 $ 373,078 Expenditures 13,444 9,190 16,995 39,629 Change in reclamation obligation 12 723 - - 723 At December 31, 2017 190,670 121,575 101,185 413,430 Accumulated depreciation, depletion and impairment At January 1, 2017 157,856 92,243 8,678 258,777 Depreciation and depletion 4,179 1,350 - 5,529 At December 31, 2017 162,035 93,593 8,678 264,306 Carrying amount at December 31, 2017 $ 28,635 $ 27,982 $ 92,507 $ 149,124 Note Mineral properties (1) Plant and equipment (2) Exploration and evaluation Total Cost At January 1, 2016 $ 176,089 $ 104,361 $ 108,253 $ 388,703 Expenditures 1,303 8,024 5,839 15,166 Caballo Blanco Property sale 5 - - (29,902 ) (29,902 ) Change in reclamation obligation 12 (889 ) - - (889 ) At December 31, 2016 176,503 112,385 84,190 373,078 Accumulated depreciation, depletion and impairment At January 1, 2016 166,166 93,157 8,678 268,001 Depreciation and depletion 10,201 4,274 - 14,475 Impairment of exploration and evaluation 5 - - 12,737 12,737 Caballo Blanco Property sale 5 - - (12,737 ) (12,737 ) Impairment reversal of mineral properties, plant and equipment 6 (18,511 ) (5,188 ) - (23,699 ) At December 31, 2016 157,856 92,243 8,678 258,777 Carrying amount at December 31, 2016 $ 18,647 $ 20,142 $ 75,512 $ 114,301 (1) At December 31, 2017, mineral properties included deferred stripping costs with a carrying value of $9,582 (December 31, 2016 - $nil). (2) Plant and equipment includes construction-in-progress assets of $14,727 (December 31, 2016 - $13,590). |
Schedule of Carrying Amount of Mineral Properties, Plant and Equipment Exploration and Evaluation by Segment | a) Carrying amount by segment Mineral properties Plant and equipment Exploration and evaluation Total At December 31, 2017 San Francisco Mine $ 28,635 $ 13,791 $ 1,043 $ 43,469 Ana Paula Project - 14,041 91,464 105,505 Other - 150 - 150 $ 28,635 $ 27,982 $ 92,507 $ 149,124 Mineral properties Plant and equipment Exploration and evaluation Total At December 31, 2016 San Francisco Mine $ 18,647 $ 7,730 $ 496 $ 26,873 Ana Paula Project - 12,412 75,016 87,428 $ 18,647 $ 20,142 $ 75,512 $ 114,301 |
Trade Payables and Accrued Li34
Trade Payables and Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Trade And Other Payables [Abstract] | |
Summary of Trade Payables and Accrued Liabilities | Years ended December 31, 2017 2016 Trade payables $ 17,699 $ 10,609 Income taxes payable 1,251 2,800 Accrued liabilities 4,121 2,053 Vendor loan 1,725 1,725 $ 24,796 $ 17,187 |
Provision for Site Reclamatio35
Provision for Site Reclamation and Closure (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Provision For Site Reclamation And Closure [Abstract] | |
Summary of Detailed Information about Provision for Site Reclamation and Closure | Balance at December 31, 2015 $ 3,981 Accretion of discounted cash flows 56 Change in estimated cash flows and assumptions (889 ) Balance at December 31, 2016 $ 3,148 Accretion of discounted cash flows 230 Change in estimated cash flows and assumptions 723 Balance at December 31, 2017 $ 4,101 |
Warrant Liability (Tables)
Warrant Liability (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Classes Of Share Capital [Abstract] | |
Schedule of Warrants | Warrants December 31, Issuance Expiry Date TSX Ticker Exercise Price Warrants Issued Common Shares Upon Exercise 2017 2016 Bought deal July 20, 2017 (1) July 20, 2018 ALO.WT.A C$8.00 $6.36 4,031,000 4,031,000 4,031,000 - Bought deal November 30, 2016 (2) May 30, 2018 ALO.WT C$0.70 $0.52 18,200,000 1,820,000 18,200,000 18,200,000 Private placement October 19, 2015 (3) October 19, 2017 - C$3.50 $2.70 1,000,000 1,000,000 - 1,000,000 23,231,000 6,851,000 22,231,000 19,200,000 (1) On July 20, 2017, the Company closed a bought deal financing and issued 4,031,000 warrants. The warrant liability was initially valued at $801, determined by the TSX opening price of C$0.25 ($0.20). For the year ended December 31, 2017, offering expense related to the warrants was $57 (note 7(c)). (2) For the year ended December 31, 2016, offering expense related to the warrants was $65 (note 7(c)). (3) On October 18, 2017, the private placement warrants were exercised for cash proceeds of C$3,500 ($2,803) and the Company issued 1,000,000 common shares. The private placement warrant liability was reclassed to common shares at a value of C$1,670 ($1,338). |
Summary of Revaluation of Share Purchase Warrants | The share purchase warrants were revalued to the following: Years ended December 31, 2017 2016 Bought deal July 20, 2017 (1) $ 305 $ - Bought deal November 30, 2016 (2) 290 1,220 Private placement October 19, 2015 - 1,251 $ 595 $ 2,471 (1) Valuation based on the TSX closing price of C$0.10 ($0.08). (2) Valuation based on the TSX closing price of C$0.02 ($0.02) (December 31, 2016 - C$0.09 ($0.07)). |
Schedule of (Gain) Loss on Revaluation of Share Purchase Warrant Liabilities | During the year ended December 31, 2017, the Company recognized the following (gain) loss on revaluation of the share purchase warrant liabilities (note 7(c)): Years ended December 31, 2017 2016 Bought deal July 20, 2017 $ (495 ) $ - Bought deal November 30, 2016 (930 ) 339 Private placement October 19, 2015 (1) 87 969 $ (1,338 ) $ 1,308 (1) Valuation based on the following weighted average assumptions for the Black-Scholes option pricing on the exercise date and December 31, 2016: October 18, December 31, 2017 2016 Risk-free interest rate 1.6 % 0.7 % Expected life of options - 0.8 years Annualized volatility 62.0 % 97.2 % Dividend rate 0.0 % 0.0 % |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Summary of Share Option Transactions and Number of Share Options Outstanding | Share option transactions and the number of share options outstanding during the years ended December 31, 2017 and 2016, are summarized as follows: Number of share options Weighted average exercise price (C$) Outstanding at January 1, 2016 2,146,550 14.73 Granted 255,000 3.30 Expired (523,600 ) 21.37 Forfeited (92,500 ) 8.71 Outstanding at December 31, 2016 1,785,450 11.47 Granted 796,900 5.26 Exercised (60,000 ) 3.30 Expired (197,500 ) 25.72 Forfeited (190,000 ) 10.30 Outstanding at December 31, 2017 2,134,850 8.29 Exercisable at December 31, 2017 1,274,825 10.34 |
Schedule of Share Options Outstanding and Exercisable | Share options outstanding and exercisable at December 31, 2017, are as follows: Exercise price range (C$) Number of options outstanding Weighted average exercise price (C$) Weighted average remaining life of options (years) Number of options exercisable Weighted average exercise price (C$) Weighted average remaining life of options (years) 2.50 - 10.00 1,695,750 5.49 3.51 835,725 5.73 2.82 10.01 - 20.00 336,500 15.43 1.64 336,500 15.43 1.64 20.01 - 31.40 102,600 31.20 3.61 102,600 31.20 3.61 2,134,850 8.29 3.22 1,274,825 10.34 2.57 |
Summary of Weighted Average Assumptions Used for Valuation of Share Options Granted | The following are the weighted average assumptions used for the Black-Scholes option pricing model valuation of share options granted during the years ended December 31, 2017 and 2016: Years ended December 31, 2017 2016 Risk-free interest rate 1.2 % 1.0 % Expected life of options 4.5 years 5.0 years Annualized volatility 75.4 % 73.0 % Forfeiture rate 2.2 % 2.2 % Dividend rate 0.0 % 0.0 % |
Schedule of Grants of Deferred Share Units, Restricted Share Units and Performance Share Units under Long-Term Incentive Plan | DSU, RSU and PSU Activity DSUs (thousands) DSU Fair Value RSUs (thousands) RSU Fair Value PSUs (thousands) PSU Fair Value At January 1, 2016 - $ - - $ - - $ - At December 31, 2016 - $ - - $ - - $ - Granted 113 492 175 762 175 1,318 Change in value - (77 ) - (119 ) - (228 ) At December 31, 2017 113 $ 415 175 $ 643 175 $ 1,090 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Income Taxes [Abstract] | |
Schedule of Reconciliation of Income Taxes | The following is a reconciliation of income taxes calculated at the combined Canadian federal and provincial statutory tax rate to the income tax expense for the years ended December 31, 2017 and 2016: Years ended December 31, 2017 2016 Earnings before income taxes $ 20,688 $ 35,970 Combined Canadian federal and provincial income tax rates 26.0 % 26.0 % Expected income tax expense 5,379 9,352 Items that cause an increase (decrease): Effect of different tax rates in foreign jurisdiction 748 1,605 Non-deductible expenses and Mexico inflation adjustments (199 ) 1,480 Foreign exchange (1,925 ) (1,114 ) Utilization of previously unrecognized tax losses - (8,278 ) Mexican special mining duty 1,105 971 Withholding taxes 424 470 Change in unrecognized deferred income tax assets 2,243 (1,266 ) Other 1,015 1,012 Income tax expense $ 8,790 $ 4,232 |
Schedule of Deferred Tax Assets and Liabilities | The composition of the Company's net deferred income tax liabilities at December 31, 2017 and 2016 are as follows: December 31, 2017 December 31, 2016 Deferred tax assets: Provision for site reclamation and closure $ 1,427 $ 1,950 Non-capital losses - 1,723 1,427 3,673 Deferred tax liabilities: Mineral properties, plant and equipment, exploration and evaluation (5,186 ) (1,949 ) Mexican special mining duty (1,613 ) (740 ) Other (2,600 ) (4,338 ) (9,399 ) (7,027 ) Deferred tax liabilities, net $ (7,972 ) $ (3,354 ) |
Schedule of Unrecognized Tax Losses, Deductible Temporary Differences, and Tax Credits | The Company's unrecognized tax losses, deductible temporary differences, and tax credits at December 31, 2017 and 2016 are as follows: December 31, 2017 December 31, 2016 Non-capital losses $ 90,200 $ 82,645 Mineral properties, plant and equipment, exploration and evaluation 114 301 Share issuance costs 3,657 1,799 $ 93,971 $ 84,745 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Summary of Earnings Per Share | Year ended December 31, 2017 Year ended December 31, 2016 Earnings the period Weighted average shares outstanding Earnings per share Earnings for the period Weighted average shares outstanding Earnings per share Basic EPS $ 11,898 39,409,369 $ 0.30 $ 31,738 32,098,930 $ 0.99 Effect of dilutive Share options - 172,570 - - 67,178 - Warrants - 275,304 - - 253,247 - Diluted EPS $ 11,898 39,857,243 $ 0.30 $ 31,738 32,419,355 $ 0.98 |
Supplemental Disclosure With 40
Supplemental Disclosure With Respect To Cash Flows (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Disclosure With Respect To Cash Flows [Abstract] | |
Schedule of Significant Non-cash Transactions | Significant non-cash transactions were as follows: Years ended December 31, Note 2017 2016 Shares issued in lieu of termination benefits 14 $ - $ 848 Shares issued on loan extinguishment 14 $ - $ 134 Shares issued as payment of debenture interest 14 $ - $ 80 |
Financial Instruments And Ris41
Financial Instruments And Risk Management (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Financial Instruments And Risk Management [Abstract] | |
Summary of Net Monetary Assets and Liabilities Held in Foreign Currencies | The table below summarizes the net monetary assets and liabilities held in foreign currencies: December 31, 2017 December 31, 2016 Canadian dollar net monetary assets $ 4,173 $ 12,427 Mexican peso net monetary assets 5,403 2,306 $ 9,576 $ 14,733 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Transactions Between Related Parties [Abstract] | |
Summary of Key Management Compensation | Key management compensation includes: Years ended December 31, 2017 2016 Salaries and benefits $ 1,065 $ 881 Bonuses 387 1,008 Share-based payments 476 672 Termination benefits 385 - $ 2,313 $ 2,561 |
Management of Capital (Tables)
Management of Capital (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Objectives Policies And Processes For Managing Capital [Abstract] | |
Summary of Capital | December 31, 2017 December 31, 2016 Equity $ 196,585 $ 143,086 Equipment financing - 378 196,585 143,464 Less: Cash and cash equivalents (31,474 ) (33,877 ) Less: Short-term investments (20,082 ) - $ 145,029 $ 109,587 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Commitments And Contingencies [Abstract] | |
Summary of Undiscounted Liabilities and Future Operating Commitments | A summary of undiscounted liabilities and future operating commitments at December 31, 2017, are as follows: Total Within 1 year 2 - 5 years Greater than 5 years Maturity analysis of financial liabilities Trade payables and accrued liabilities $ 24,796 $ 24,796 $ - $ - 24,796 24,796 - - Commitments Future operating commitments (1) (2) 265,629 63,778 201,851 - Provision for site reclamation and closure (3) 5,337 - - 5,337 Other provisions (4) 1,584 - - 1,584 272,550 63,778 201,851 6,921 Total financial liabilities and commitments $ 297,346 $ 88,574 $ 201,851 $ 6,921 (1) The future operating commitments of the Company are mainly due to the mining contract with Peal de Mexico, S.A. de C.V. (“Peal”). A four-year contract with Peal was signed effective December 21, 2017. The contract covers substantially all mining services at a fixed cost per tonne of material mined. The Peal commitment is based on the expected tonnage from 2018 to 2021. Operating commitments also include a guarantee provided by the Company for the office premises at its corporate office. (2) Contractual commitments are defined as agreements that are enforceable and legally binding. Certain of the contractual commitments may contain cancellation clauses; the Company discloses the contractual operating commitments based on management's intent to fulfil the contracts. (3) Provision for site reclamation and closure represents the undiscounted amount of the e stimated cash flows required to settle the retirement obligations of the San Francisco Mine. (4) Other provisions represent the undiscounted amount of the demobilization costs related to the Peal contract, whereby t he Company is responsible for demobilization costs payable one month prior to the end of the mining contract. This obligation has been recorded at an annualized discount rate of 2.3%, reflecting the implied interest rate, and calculated according to the formula stipulated in the contract. At December 31, 2017, this obligation was determined to be $1,380. |
Segmented Information (Tables)
Segmented Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Operating Segments [Abstract] | |
Schedule of Segmented Information | Year ended December 31, 2017 Segment results San Francisco Mine Ana Paula Project Other Total Metal revenues $ 105,162 $ - $ - $ 105,162 Production costs (69,818 ) - - (69,818 ) Depreciation and depletion (4,641 ) - - (4,641 ) Corporate and administrative expenses (2,047 ) - (6,590 ) (8,637 ) Earnings (loss) from operations $ 28,656 $ - $ (6,590 ) $ 22,066 Capital expenditures $ 20,909 $ 17,256 $ 163 $ 38,328 Year ended December 31, 2016 Segment results San Francisco Mine Ana Paula Project Other Total Metal revenues $ 123,873 $ - $ - $ 123,873 Production costs (74,717 ) - - (74,717 ) Depreciation and depletion (14,299 ) - - (14,299 ) Corporate and administrative expenses (2,085 ) - (5,522 ) (7,607 ) Impairment reversal of mineral properties and other assets 23,699 - - 23,699 Other - - (13,593 ) (13,593 ) Earnings (loss) from operations $ 56,471 $ - $ (19,115 ) $ 37,356 Capital expenditures $ 5,647 $ 13,154 $ 178 $ 18,979 Segment assets and liabilities San Francisco Mine Ana Paula Project Other Total As at December 31, 2017 Total assets $ 89,612 $ 107,196 $ 38,827 $ 235,635 Total liabilities $ 33,577 $ 3,028 $ 2,445 $ 39,050 As at December 31, 2016 Total assets $ 64,008 $ 88,427 $ 18,408 $ 170,843 Total liabilities $ 22,249 $ 1,791 $ 3,717 $ 27,757 |
Percentage of Metal Revenues by Major Customers | The percentage breakdown of metal revenues by major customer is as follows: Years ended December 31, 2017 2016 Customer A 94 % 95 % Customer B 5 % 4 % Customer C 1 % 1 % Total 100 % 100 % |
Company's Metal Revenues from Operations | The Company’s metal revenues from operations, 100% of which are derived in Mexico, for the years ended December 31, 2017 and 2016, are as follows: Years ended December 31, 2017 2016 Gold $ 104,510 $ 122,916 Silver by-product 652 957 $ 105,162 $ 123,873 |
Nature of Operations - Addition
Nature of Operations - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2017 | May 12, 2017 | |
Disclosure Of Nature Of Operations [Line Items] | ||
Ratio of pre-consolidated common shares to post-consolidated common share | 10.00% | |
Ana Paula Property | Mexico | Minera Aurea | ||
Disclosure Of Nature Of Operations [Line Items] | ||
Proportion of ownership interest in property | 100.00% |
Significant Accounting Polici47
Significant Accounting Policies - Schedule of Depreciation Methods and Rates of Plant and Equipment (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Computer Equipment | |
Disclosure Of Property Plant And Equipment [Line Items] | |
Depreciation methods and rates, property, plant and equipment | 30% straight line method |
Leasehold Improvements | |
Disclosure Of Property Plant And Equipment [Line Items] | |
Depreciation methods and rates, property, plant and equipment | 20% straight line method |
Office Furniture and Equipment | |
Disclosure Of Property Plant And Equipment [Line Items] | |
Depreciation methods and rates, property, plant and equipment | 10% straight line method |
Vehicles | |
Disclosure Of Property Plant And Equipment [Line Items] | |
Depreciation methods and rates, property, plant and equipment | 25% straight line method |
Mine Equipment and Buildings | |
Disclosure Of Property Plant And Equipment [Line Items] | |
Depreciation methods and rates, property, plant and equipment | UOP method |
Plant and Equipment | |
Disclosure Of Property Plant And Equipment [Line Items] | |
Depreciation methods and rates, property, plant and equipment | UOP method |
Significant Accounting Polici48
Significant Accounting Policies - Schedule of Depreciation Methods and Rates of Plant and Equipment After Impairment (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Computer Equipment | |
Disclosure Of Property Plant And Equipment [Line Items] | |
Depreciation methods and rates, property, plant and equipment after impairment | 33% straight line method |
Leasehold Improvements | |
Disclosure Of Property Plant And Equipment [Line Items] | |
Depreciation methods and rates, property, plant and equipment after impairment | 33% straight line method |
Office Furniture and Equipment | |
Disclosure Of Property Plant And Equipment [Line Items] | |
Depreciation methods and rates, property, plant and equipment after impairment | 33% straight line method |
Vehicles | |
Disclosure Of Property Plant And Equipment [Line Items] | |
Depreciation methods and rates, property, plant and equipment after impairment | 33% straight line method |
Mine Equipment and Buildings | |
Disclosure Of Property Plant And Equipment [Line Items] | |
Depreciation methods and rates, property, plant and equipment after impairment | UOP method |
Plant and Equipment | |
Disclosure Of Property Plant And Equipment [Line Items] | |
Depreciation methods and rates, property, plant and equipment after impairment | UOP method |
Significant Accounting Polici49
Significant Accounting Policies - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2017USD ($)shares | |
Disclosure Of Significant Accounting Policies [Line Items] | |
Impairment loss | $ | $ 0 |
Deferred Share Units | |
Disclosure Of Significant Accounting Policies [Line Items] | |
Share based payment arrangement other equity instruments conversion ratio | 1 |
Restricted Share Units | |
Disclosure Of Significant Accounting Policies [Line Items] | |
Share based payment arrangement other equity instruments conversion ratio | 1 |
Share based payment arrangement vesting period | 3 years |
Caballo Blanco Property Sale -
Caballo Blanco Property Sale - Additional Information (Details) - USD ($) $ in Thousands | Jul. 20, 2016 | Jun. 30, 2016 |
Disclosure Of Assets Disposal [Line Items] | ||
Impairment charges and asset held for sale | $ 12,737 | |
Consideration paid | $ 12,500 | |
Fair value of consideration on closing date | 17,156 | |
Losses on disposals of investment properties | 856 | |
Candelaria Mining Corp | ||
Disclosure Of Assets Disposal [Line Items] | ||
Contingent liabilities recognised in disposal | 5,000 | |
Fair value contingent liability recognised in disposal | $ 4,656 |
Impairment Or Impairment Reve51
Impairment Or Impairment Reversal of Mineral Properties and Other Assets - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($)$ / Ounce | |
Disclosure Of Impairment Loss And Reversal Of Impairment Loss [Abstract] | ||
Impairment or reversal of impairment | $ 0 | |
Recognized impairment reversal | $ 23,699,000 | |
Fair value assumption of assets | $ / Ounce | 1,250 | |
Discount rate of forecast asset | 6.00% |
Expenses - Schedule of Cost of
Expenses - Schedule of Cost of Sales (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Expense By Nature [Abstract] | ||
Costs of contract mining | $ 41,397 | $ 39,337 |
Crushing and gold recovery costs | 32,081 | 31,333 |
Mine site administration costs | 5,534 | 3,809 |
Transport and refining | 253 | 330 |
Royalties | 527 | 623 |
Demobilization costs | 1,398 | |
Change in inventories | (9,974) | (2,113) |
Production costs | 69,818 | 74,717 |
Depreciation and depletion | 4,641 | 14,299 |
Cost of sales (including depreciation and depletion) | $ 74,459 | $ 89,016 |
Expenses - Summary of Corporate
Expenses - Summary of Corporate and Administrative Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Corporate And Administrative Expenses [Abstract] | ||
Salaries | $ 3,632 | $ 3,315 |
Consulting and professional fees | 1,956 | 2,015 |
Share-based payments | 1,287 | 837 |
Rent and office costs | 359 | 317 |
Administrative and other | 1,403 | 1,123 |
Corporate and administrative expenses | $ 8,637 | $ 7,607 |
Expenses - Summary of Corpora54
Expenses - Summary of Corporate and Administrative Expenses (Parenthetical) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Corporate And Administrative Expenses [Abstract] | ||
Termination benefits | $ 708 | $ 44 |
Expenses - Summary of Finance E
Expenses - Summary of Finance Expense, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Expense By Nature [Abstract] | ||
(Gain) loss on revaluation of warrant liabilities | $ (1,338) | $ 1,308 |
Accretion of provision for site reclamation and closure and other provisions | 250 | 67 |
Offering expense | 57 | 65 |
Interest on loan facility and equipment financing | 6 | 597 |
Accretion of loan facility | 736 | |
Accretion on extinguished liability | 141 | |
Interest on debenture | 43 | |
Finance expense, net | $ (1,025) | $ 2,957 |
Expenses - Summary of Finance56
Expenses - Summary of Finance Expense, Net (Parenthetical) (Details) $ in Thousands, $ in Thousands | Jun. 29, 2016USD ($) | Jun. 29, 2016CAD ($) | Jun. 14, 2016USD ($)shares | Dec. 31, 2016USD ($) |
Disclosure Of Detailed Information About Borrowings [Line Items] | ||||
Repayment of loan facility bonus and accrued interest | $ 10,223 | |||
Debentures | ||||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||||
Settlement of debenture | $ 1,540 | $ 2,000 | ||
Secured Loan Facility | ||||
Disclosure Of Detailed Information About Borrowings [Line Items] | ||||
Repayment of loan facility bonus and accrued interest | $ 10,223 | |||
Cash bonus payable | $ 274 | |||
Number of common shares to be issued in lieu of portion of cash bonus | shares | 55,000 | |||
Value of common shares to be issued in lieu of portion of cash bonus | $ 134 |
Trade and Other Receivables - S
Trade and Other Receivables - Summary of Detailed Information about Trade and Other Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure Of Trade And Other Current Receivables [Line Items] | ||
Trade receivable | $ 1,019 | $ 1,322 |
VAT receivable | 10,614 | 4,921 |
Other receivables | 59 | 156 |
Trade and other receivables | $ 11,692 | 8,899 |
Caballo Blanco Property | ||
Disclosure Of Trade And Other Current Receivables [Line Items] | ||
Receivable on Caballo Blanco Property sale | $ 2,500 |
Trade and Other Receivables -58
Trade and Other Receivables - Summary of Detailed Information about Trade and Other Receivables (Parenthetical) (Details) - USD ($) | 2 Months Ended | 12 Months Ended | |
Feb. 20, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Trade And Other Current Receivables [Line Items] | |||
Income tax instalments applied against VAT receivable | $ 7,582,000 | $ 0 | |
Value added tax collected | 8,246,000 | 16,027,000 | |
Allowance for doubtful accounts on other receivables | $ 0 | $ 92,000 | |
Subsequent [Member] | |||
Disclosure Of Trade And Other Current Receivables [Line Items] | |||
Value added tax collected | $ 1,887,000 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure Of Inventories [Abstract] | ||
Ore in process | $ 16,764 | $ 6,347 |
Finished metal inventory | 383 | |
Supplies | 4,837 | 3,988 |
Current inventories | $ 21,984 | $ 10,335 |
Inventories - Additional Inform
Inventories - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Inventories [Abstract] | ||
Inventories recognized as expense | $ 68,145 | $ 82,856 |
Mineral Properties, Plant and61
Mineral Properties, Plant and Equipment, Exploration and Evaluation - Schedule of Mineral Properties Plant and Equipment Exploration and Evaluation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Mineral Properties Plant And Equipment Exploration And Evaluation [Line Items] | ||
Mineral properties plant and equipment exploration and evaluation | $ 114,301 | |
Mineral properties plant and equipment exploration and evaluation | 149,124 | $ 114,301 |
Depreciation and depletion | 4,641 | 14,299 |
Cost | ||
Disclosure Of Mineral Properties Plant And Equipment Exploration And Evaluation [Line Items] | ||
Mineral properties plant and equipment exploration and evaluation | 373,078 | 388,703 |
Expenditures | 39,629 | 15,166 |
Change in reclamation obligation | 723 | (889) |
Mineral properties plant and equipment exploration and evaluation | 413,430 | 373,078 |
Cost | Caballo Blanco Property | ||
Disclosure Of Mineral Properties Plant And Equipment Exploration And Evaluation [Line Items] | ||
Caballo Blanco Property sale | (29,902) | |
Accumulated Depreciation, Depletion and Impairment | ||
Disclosure Of Mineral Properties Plant And Equipment Exploration And Evaluation [Line Items] | ||
Mineral properties plant and equipment exploration and evaluation | 258,777 | 268,001 |
Mineral properties plant and equipment exploration and evaluation | 264,306 | 258,777 |
Depreciation and depletion | 5,529 | 14,475 |
Impairment of exploration and evaluation | 12,737 | |
Impairment reversal of mineral properties, plant and equipment | (23,699) | |
Accumulated Depreciation, Depletion and Impairment | Caballo Blanco Property | ||
Disclosure Of Mineral Properties Plant And Equipment Exploration And Evaluation [Line Items] | ||
Caballo Blanco Property sale | (12,737) | |
Mineral Properties | ||
Disclosure Of Mineral Properties Plant And Equipment Exploration And Evaluation [Line Items] | ||
Mineral properties plant and equipment exploration and evaluation | 18,647 | |
Mineral properties plant and equipment exploration and evaluation | 28,635 | 18,647 |
Mineral Properties | Cost | ||
Disclosure Of Mineral Properties Plant And Equipment Exploration And Evaluation [Line Items] | ||
Mineral properties plant and equipment exploration and evaluation | 176,503 | 176,089 |
Expenditures | 13,444 | 1,303 |
Change in reclamation obligation | 723 | (889) |
Mineral properties plant and equipment exploration and evaluation | 190,670 | 176,503 |
Mineral Properties | Accumulated Depreciation, Depletion and Impairment | ||
Disclosure Of Mineral Properties Plant And Equipment Exploration And Evaluation [Line Items] | ||
Mineral properties plant and equipment exploration and evaluation | 157,856 | 166,166 |
Mineral properties plant and equipment exploration and evaluation | 162,035 | 157,856 |
Depreciation and depletion | 4,179 | 10,201 |
Impairment reversal of mineral properties, plant and equipment | (18,511) | |
Plant and Equipment | ||
Disclosure Of Mineral Properties Plant And Equipment Exploration And Evaluation [Line Items] | ||
Mineral properties plant and equipment exploration and evaluation | 20,142 | |
Mineral properties plant and equipment exploration and evaluation | 27,982 | 20,142 |
Plant and Equipment | Cost | ||
Disclosure Of Mineral Properties Plant And Equipment Exploration And Evaluation [Line Items] | ||
Mineral properties plant and equipment exploration and evaluation | 112,385 | 104,361 |
Expenditures | 9,190 | 8,024 |
Mineral properties plant and equipment exploration and evaluation | 121,575 | 112,385 |
Plant and Equipment | Accumulated Depreciation, Depletion and Impairment | ||
Disclosure Of Mineral Properties Plant And Equipment Exploration And Evaluation [Line Items] | ||
Mineral properties plant and equipment exploration and evaluation | 92,243 | 93,157 |
Mineral properties plant and equipment exploration and evaluation | 93,593 | 92,243 |
Depreciation and depletion | 1,350 | 4,274 |
Impairment reversal of mineral properties, plant and equipment | (5,188) | |
Exploration and Evaluation | ||
Disclosure Of Mineral Properties Plant And Equipment Exploration And Evaluation [Line Items] | ||
Mineral properties plant and equipment exploration and evaluation | 75,512 | |
Mineral properties plant and equipment exploration and evaluation | 92,507 | 75,512 |
Exploration and Evaluation | Cost | ||
Disclosure Of Mineral Properties Plant And Equipment Exploration And Evaluation [Line Items] | ||
Mineral properties plant and equipment exploration and evaluation | 84,190 | 108,253 |
Expenditures | 16,995 | 5,839 |
Mineral properties plant and equipment exploration and evaluation | 101,185 | 84,190 |
Exploration and Evaluation | Cost | Caballo Blanco Property | ||
Disclosure Of Mineral Properties Plant And Equipment Exploration And Evaluation [Line Items] | ||
Caballo Blanco Property sale | (29,902) | |
Exploration and Evaluation | Accumulated Depreciation, Depletion and Impairment | ||
Disclosure Of Mineral Properties Plant And Equipment Exploration And Evaluation [Line Items] | ||
Mineral properties plant and equipment exploration and evaluation | 8,678 | 8,678 |
Mineral properties plant and equipment exploration and evaluation | $ 8,678 | 8,678 |
Impairment of exploration and evaluation | 12,737 | |
Exploration and Evaluation | Accumulated Depreciation, Depletion and Impairment | Caballo Blanco Property | ||
Disclosure Of Mineral Properties Plant And Equipment Exploration And Evaluation [Line Items] | ||
Caballo Blanco Property sale | $ (12,737) |
Mineral Properties, Plant and62
Mineral Properties, Plant and Equipment, Exploration and Evaluation - Schedule of Mineral Properties Plant and Equipment Exploration and Evaluation (Parenthetical) (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Mineral Properties | ||
Disclosure Of Mineral Properties Plant And Equipment Exploration And Evaluation [Line Items] | ||
Carrying value of deferred stripping costs | $ 9,582,000 | $ 0 |
Plant and Equipment | ||
Disclosure Of Mineral Properties Plant And Equipment Exploration And Evaluation [Line Items] | ||
Construction-in-progress assets | $ 14,727,000 | $ 13,590,000 |
Mineral Properties, Plant and63
Mineral Properties, Plant and Equipment, Exploration and Evaluation - Schedule of Carrying Amount by Segment (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure Of Mineral Properties Plant And Equipment Exploration And Evaluation [Line Items] | ||
Mineral properties, plant and equipment, exploration and evaluation | $ 149,124 | $ 114,301 |
Other | ||
Disclosure Of Mineral Properties Plant And Equipment Exploration And Evaluation [Line Items] | ||
Mineral properties, plant and equipment, exploration and evaluation | 150 | |
Mineral Properties | ||
Disclosure Of Mineral Properties Plant And Equipment Exploration And Evaluation [Line Items] | ||
Mineral properties, plant and equipment, exploration and evaluation | 28,635 | 18,647 |
Plant and Equipment | ||
Disclosure Of Mineral Properties Plant And Equipment Exploration And Evaluation [Line Items] | ||
Mineral properties, plant and equipment, exploration and evaluation | 27,982 | 20,142 |
Plant and Equipment | Other | ||
Disclosure Of Mineral Properties Plant And Equipment Exploration And Evaluation [Line Items] | ||
Mineral properties, plant and equipment, exploration and evaluation | 150 | |
Exploration and Evaluation | ||
Disclosure Of Mineral Properties Plant And Equipment Exploration And Evaluation [Line Items] | ||
Mineral properties, plant and equipment, exploration and evaluation | 92,507 | 75,512 |
San Francisco Mine | ||
Disclosure Of Mineral Properties Plant And Equipment Exploration And Evaluation [Line Items] | ||
Mineral properties, plant and equipment, exploration and evaluation | 43,469 | 26,873 |
San Francisco Mine | Mineral Properties | ||
Disclosure Of Mineral Properties Plant And Equipment Exploration And Evaluation [Line Items] | ||
Mineral properties, plant and equipment, exploration and evaluation | 28,635 | 18,647 |
San Francisco Mine | Plant and Equipment | ||
Disclosure Of Mineral Properties Plant And Equipment Exploration And Evaluation [Line Items] | ||
Mineral properties, plant and equipment, exploration and evaluation | 13,791 | 7,730 |
San Francisco Mine | Exploration and Evaluation | ||
Disclosure Of Mineral Properties Plant And Equipment Exploration And Evaluation [Line Items] | ||
Mineral properties, plant and equipment, exploration and evaluation | 1,043 | 496 |
Ana Paula Project | ||
Disclosure Of Mineral Properties Plant And Equipment Exploration And Evaluation [Line Items] | ||
Mineral properties, plant and equipment, exploration and evaluation | 105,505 | 87,428 |
Ana Paula Project | Plant and Equipment | ||
Disclosure Of Mineral Properties Plant And Equipment Exploration And Evaluation [Line Items] | ||
Mineral properties, plant and equipment, exploration and evaluation | 14,041 | 12,412 |
Ana Paula Project | Exploration and Evaluation | ||
Disclosure Of Mineral Properties Plant And Equipment Exploration And Evaluation [Line Items] | ||
Mineral properties, plant and equipment, exploration and evaluation | $ 91,464 | $ 75,016 |
Trade Payables and Accrued Li64
Trade Payables and Accrued Liabilities - Summary of Trade Payables and Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Trade And Other Payables [Abstract] | ||
Trade payables | $ 17,699 | $ 10,609 |
Income taxes payable | 1,251 | 2,800 |
Accrued liabilities | 4,121 | 2,053 |
Vendor loan | 1,725 | 1,725 |
Trade payables and accrued liabilities | $ 24,796 | $ 17,187 |
Provision for Site Reclamatio65
Provision for Site Reclamation and Closure - Summary of Detailed Information about Provision for Site Reclamation and Closure (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Provision For Site Reclamation And Closure [Abstract] | ||
Beginning balance | $ 3,148 | $ 3,981 |
Accretion of discounted cash flows | 230 | 56 |
Change in estimated cash flows and assumptions | 723 | (889) |
Ending balance | $ 4,101 | $ 3,148 |
Provision for Site Reclamatio66
Provision for Site Reclamation and Closure - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Provision For Site Reclamation And Closure [Line Items] | ||
Increase (decrease) in provisions | $ 723 | $ (889) |
San Francisco Mine | ||
Disclosure Of Provision For Site Reclamation And Closure [Line Items] | ||
Total undiscounted amount of estimated cash flows requited to settle retirement obligation | $ 5,337 | $ 4,195 |
Inflation rate of cash flows | 3.50% | 3.00% |
Pre-tax risk-free rate used to discount cash flows | 7.50% | 7.30% |
Warrant Liability - Schedule of
Warrant Liability - Schedule of Warrants (Details) | 12 Months Ended | ||||
Dec. 31, 2017$ / sharesshares | Dec. 31, 2017$ / sharesshares | Oct. 18, 2017shares | Jul. 20, 2017shares | Dec. 31, 2016shares | |
Disclosure Of Classes Of Share Capital [Line Items] | |||||
Warrants Issued | 23,231,000 | 23,231,000 | |||
Common Shares Upon Exercise | 6,851,000 | 6,851,000 | |||
Warrants Outstanding | 22,231,000 | 22,231,000 | 19,200,000 | ||
Bought deal July 20, 2017 | |||||
Disclosure Of Classes Of Share Capital [Line Items] | |||||
Expiry Date | Jul. 20, 2018 | Jul. 20, 2018 | |||
TSX Ticker | ALO.WT.A | ALO.WT.A | |||
Exercise Price | (per share) | $ 6.36 | $ 8 | |||
Warrants Issued | 4,031,000 | 4,031,000 | 4,031,000 | ||
Common Shares Upon Exercise | 4,031,000 | 4,031,000 | |||
Warrants Outstanding | 4,031,000 | 4,031,000 | |||
Bought deal November 30, 2016 | |||||
Disclosure Of Classes Of Share Capital [Line Items] | |||||
Expiry Date | May 30, 2018 | May 30, 2018 | |||
TSX Ticker | ALO.WT | ALO.WT | |||
Exercise Price | (per share) | $ 0.52 | $ 0.70 | |||
Warrants Issued | 18,200,000 | 18,200,000 | |||
Common Shares Upon Exercise | 1,820,000 | 1,820,000 | |||
Warrants Outstanding | 18,200,000 | 18,200,000 | 18,200,000 | ||
Private Placement October 19, 2015 | |||||
Disclosure Of Classes Of Share Capital [Line Items] | |||||
Expiry Date | Oct. 19, 2017 | Oct. 19, 2017 | |||
Exercise Price | (per share) | $ 2.70 | $ 3.50 | |||
Warrants Issued | 1,000,000 | 1,000,000 | |||
Common Shares Upon Exercise | 1,000,000 | 1,000,000 | 1,000,000 | ||
Warrants Outstanding | 1,000,000 |
Warrant Liability - Schedule 68
Warrant Liability - Schedule of Warrants (Parenthetical) (Details) $ / shares in Units, $ / shares in Units, $ in Thousands, $ in Thousands | Oct. 18, 2017USD ($)shares | Oct. 18, 2017CAD ($) | Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($) | Oct. 18, 2017CAD ($)shares | Jul. 20, 2017USD ($)$ / sharesshares | Jul. 20, 2017$ / shares |
Disclosure Of Classes Of Share Capital [Line Items] | |||||||
Warrants issued | 23,231,000 | ||||||
Offering expense | $ | $ 57 | $ 65 | |||||
Common Shares Upon Exercise | 6,851,000 | ||||||
Bought deal July 20, 2017 | |||||||
Disclosure Of Classes Of Share Capital [Line Items] | |||||||
Warrants issued | 4,031,000 | 4,031,000 | |||||
Warrant liability | $ | $ 801 | ||||||
Opening price | (per share) | $ 0.20 | $ 0.25 | |||||
Offering expense | $ | $ 57 | ||||||
Common Shares Upon Exercise | 4,031,000 | ||||||
Bought deal November 30, 2016 | |||||||
Disclosure Of Classes Of Share Capital [Line Items] | |||||||
Warrants issued | 18,200,000 | ||||||
Offering expense | $ | $ 65 | ||||||
Common Shares Upon Exercise | 1,820,000 | ||||||
Private Placement October 19, 2015 | |||||||
Disclosure Of Classes Of Share Capital [Line Items] | |||||||
Warrants issued | 1,000,000 | ||||||
Cash proceeds from warrants exercised | $ 2,803 | $ 3,500 | |||||
Common Shares Upon Exercise | 1,000,000 | 1,000,000 | 1,000,000 | ||||
Warrant liability reclassed to common shares value | $ 1,338 | $ 1,670 |
Warrant Liability - Summary of
Warrant Liability - Summary of Revaluation of Share Purchase Warrants (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Classes Of Share Capital [Line Items] | ||
Share purchase warrants revalued amount | $ 595 | $ 2,471 |
Bought deal July 20, 2017 | ||
Disclosure Of Classes Of Share Capital [Line Items] | ||
Share purchase warrants revalued amount | 305 | |
Bought deal November 30, 2016 | ||
Disclosure Of Classes Of Share Capital [Line Items] | ||
Share purchase warrants revalued amount | $ 290 | 1,220 |
Private Placement October 19, 2015 | ||
Disclosure Of Classes Of Share Capital [Line Items] | ||
Share purchase warrants revalued amount | $ 1,251 |
Warrant Liability - Summary o70
Warrant Liability - Summary of Revaluation of Share Purchase Warrants (Parenthetical) (Details) | Dec. 31, 2017$ / shares | Dec. 31, 2017$ / shares | Dec. 31, 2016$ / shares | Dec. 31, 2016$ / shares |
Bought deal July 20, 2017 | ||||
Disclosure Of Classes Of Share Capital [Line Items] | ||||
Closing price per warrant on revaluation | (per share) | $ 0.08 | $ 0.10 | ||
Bought deal November 30, 2016 | ||||
Disclosure Of Classes Of Share Capital [Line Items] | ||||
Closing price per warrant on revaluation | (per share) | $ 0.02 | $ 0.02 | $ 0.07 | $ 0.09 |
Warrant Liability - Schedule 71
Warrant Liability - Schedule of (Gain) Loss on Revaluation of Share Purchase Warrant Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Classes Of Share Capital [Line Items] | ||
(Gain) loss on revaluation of warrant liabilities | $ (1,338) | $ 1,308 |
Bought deal July 20, 2017 | ||
Disclosure Of Classes Of Share Capital [Line Items] | ||
(Gain) loss on revaluation of warrant liabilities | (495) | |
Bought deal November 30, 2016 | ||
Disclosure Of Classes Of Share Capital [Line Items] | ||
(Gain) loss on revaluation of warrant liabilities | (930) | 339 |
Private Placement October 19, 2015 | ||
Disclosure Of Classes Of Share Capital [Line Items] | ||
(Gain) loss on revaluation of warrant liabilities | $ 87 | $ 969 |
Warrant Liability - Schedule 72
Warrant Liability - Schedule of (Gain) Loss on Revaluation of Share Purchase Warrant Liabilities (Parenthetical) (Details) - Private Placement October 19, 2015 | Oct. 18, 2017 | Dec. 31, 2016 |
Disclosure Of Classes Of Share Capital [Line Items] | ||
Risk-free interest rate | 1.60% | 0.70% |
Expected life of options | 9 months 18 days | |
Annualized volatility | 62.00% | 97.20% |
Dividend rate | 0.00% | 0.00% |
Equity - Additional Information
Equity - Additional Information (Details) | 12 Months Ended | |||||||||||||
Dec. 31, 2017USD ($)shares | Dec. 31, 2017CAD ($)shares | Dec. 31, 2016USD ($)shares | Dec. 31, 2016CAD ($)shares | Dec. 31, 2017CAD ($)shares | Dec. 31, 2016CAD ($)shares | Dec. 31, 2015shares | [1] | |||||||
Disclosure Of Classes Of Share Capital [Line Items] | ||||||||||||||
Number of common shares issued upon exercise of share options | 53,854 | 53,854 | ||||||||||||
Value of common shares issued upon exercise of share options | $ | $ 214,000 | |||||||||||||
Common shares issued to settle interest on debenture | 30,193 | 30,193 | ||||||||||||
Value of common shares issued to settle interest on debentures | $ | $ 80,000 | |||||||||||||
Value common shares issued to settle bonus payment on extinguishment of loan | $ | $ 134,000 | |||||||||||||
Number of shares issued in connection to termination benefits | 304,447 | 304,447 | ||||||||||||
Value common stock issued in connection to termination benefits | $ | $ 848,000 | |||||||||||||
Fair value of share options recognized as expense | $ | 892,000 | 837,000 | ||||||||||||
Weighted average grant date fair value of options granted | $ 2.36 | 1.39 | $ 3.07 | $ 1.85 | ||||||||||
Deferred Share Units | ||||||||||||||
Disclosure Of Classes Of Share Capital [Line Items] | ||||||||||||||
Share based payment arrangement other equity instruments conversion ratio | 1 | 1 | ||||||||||||
Shares outstanding included in liabilities | $ | $ 189,000 | |||||||||||||
Share-based payments expense | $ | $ 189,000 | 0 | ||||||||||||
Restricted Share Units | ||||||||||||||
Disclosure Of Classes Of Share Capital [Line Items] | ||||||||||||||
Share based payment arrangement other equity instruments conversion ratio | 1 | 1 | ||||||||||||
Shares outstanding included in liabilities | $ | $ 64,000 | |||||||||||||
Share-based payments expense | $ | $ 64,000 | 0 | ||||||||||||
Share based payment arrangement vesting period | 3 years | 3 years | ||||||||||||
Share based payment arrangement other equity instruments vesting date | Sep. 13, 2020 | Sep. 13, 2020 | ||||||||||||
Performance Share Units | ||||||||||||||
Disclosure Of Classes Of Share Capital [Line Items] | ||||||||||||||
Share based payment arrangement other equity instruments conversion ratio | 1 | 1 | ||||||||||||
Shares outstanding included in liabilities | $ | $ 142,000 | |||||||||||||
Share-based payments expense | $ | $ 142,000 | $ 0 | ||||||||||||
Share based payment arrangement other equity instruments vesting date | Dec. 31, 2019 | Dec. 31, 2019 | ||||||||||||
Maximum | ||||||||||||||
Disclosure Of Classes Of Share Capital [Line Items] | ||||||||||||||
Percentage of share options allowed to be granted as percentage of number of issued shares | 10.00% | 10.00% | ||||||||||||
share options granted, term | 5 years | 5 years | ||||||||||||
Minimum | ||||||||||||||
Disclosure Of Classes Of Share Capital [Line Items] | ||||||||||||||
Share options vesting period | 18 months | 18 months | ||||||||||||
Goldcorp Inc. | ||||||||||||||
Disclosure Of Classes Of Share Capital [Line Items] | ||||||||||||||
Number of common shares issued to settle bonus payment on extinguishment of loan | 55,000 | 55,000 | ||||||||||||
Value common shares issued to settle bonus payment on extinguishment of loan | $ | $ 134,000 | |||||||||||||
Private Placement | ||||||||||||||
Disclosure Of Classes Of Share Capital [Line Items] | ||||||||||||||
Number of shares of common stock issued during period, warrants exercised | 1,000,000 | 1,000,000 | ||||||||||||
Common stock issued during period, value, warrants exercised | $ 4,141,000 | $ 5,170,000 | ||||||||||||
Common Shares | ||||||||||||||
Disclosure Of Classes Of Share Capital [Line Items] | ||||||||||||||
Common stock shares issued in financing | 8,062,000 | [1] | 8,062,000 | [1] | 3,640,000 | [1] | 3,640,000 | [1] | ||||||
Number of common shares issued upon exercise of share options | 53,854 | [1] | 53,854 | [1] | ||||||||||
Common shares issued to settle interest on debenture | 30,193 | [1] | 30,193 | [1] | ||||||||||
Number of common shares issued to settle bonus payment on extinguishment of loan | 55,000 | [1] | 55,000 | [1] | ||||||||||
Number of shares issued in connection to termination benefits | 304,447 | [1] | 304,447 | [1] | ||||||||||
Number of shares issued | 44,678,701 | 35,562,847 | 44,678,701 | 35,562,847 | ||||||||||
Number of shares outstanding | 44,678,701 | [1] | 35,562,847 | [1] | 44,678,701 | [1] | 35,562,847 | [1] | 31,533,207 | |||||
Bought Deal Financing | ||||||||||||||
Disclosure Of Classes Of Share Capital [Line Items] | ||||||||||||||
Common stock shares issued in financing | 8,062,000 | 8,062,000 | 3,640,000 | 3,640,000 | ||||||||||
Proceeds from issue of common shares | $ 39,237,000 | $ 49,380,000 | $ 14,030,000 | $ 18,837,000 | ||||||||||
Stock issuance transaction costs | $ 2,799,000 | $ 3,523,000 | $ 1,043,000 | $ 1,401,000 | ||||||||||
[1] | Share consolidation (note 1). |
Equity - Summary of Share Optio
Equity - Summary of Share Option Transactions and Number of Share Options Outstanding (Details) | 12 Months Ended | |
Dec. 31, 2017CAD ($)shares | Dec. 31, 2016CAD ($)shares | |
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Abstract] | ||
Number of share options outstanding, Beginning balance | shares | 1,785,450 | 2,146,550 |
Number of share options, Granted | shares | 796,900 | 255,000 |
Number of share options, Exercised | shares | (60,000) | |
Number of share options, Expired | shares | (197,500) | (523,600) |
Number of share options, Forfeited | shares | (190,000) | (92,500) |
Number of share options outstanding, Ending balance | shares | 2,134,850 | 1,785,450 |
Number of share options, Exercisable | shares | 1,274,825 | |
Weighted average exercise price outstanding, Beginning balance | $ | $ 11.47 | $ 14.73 |
Weighted average exercise price, Granted | $ | 5.26 | 3.30 |
Weighted average exercise price, Exercised | $ | 3.30 | |
Weighted average exercise price, Expired | $ | 25.72 | 21.37 |
Weighted average exercise price, Forfeited | $ | 10.30 | 8.71 |
Weighted average exercise price outstanding, Ending balance | $ | 8.29 | $ 11.47 |
Weighted average exercise price, Exercisable | $ | $ 10.34 |
Equity - Schedule of Share Opti
Equity - Schedule of Share Options Outstanding and Exercisable (Details) | 12 Months Ended | ||
Dec. 31, 2017CAD ($)sharesyr | Dec. 31, 2016CAD ($)shares | Dec. 31, 2015CAD ($)shares | |
Disclosure Of Range Of Exercise Prices Of Outstanding Share Options [Line Items] | |||
Number of options outstanding | shares | 2,134,850 | 1,785,450 | 2,146,550 |
Weighted average exercise price, options outstanding | $ 8.29 | $ 11.47 | $ 14.73 |
Weighted average remaining life of options (years), outstanding | yr | 3.22 | ||
Number of options exercisable | shares | 1,274,825 | ||
Weighted average exercise price, options exercisable | $ 10.34 | ||
Weighted average remaining life of options (years), exercisable | 2 years 6 months 25 days | ||
2.50 - 10.00 | |||
Disclosure Of Range Of Exercise Prices Of Outstanding Share Options [Line Items] | |||
Number of options outstanding | shares | 1,695,750 | ||
Weighted average exercise price, options outstanding | $ 5.49 | ||
Weighted average remaining life of options (years), outstanding | yr | 3.51 | ||
Number of options exercisable | shares | 835,725 | ||
Weighted average exercise price, options exercisable | $ 5.73 | ||
Weighted average remaining life of options (years), exercisable | 2 years 9 months 25 days | ||
2.50 - 10.00 | Minimum | |||
Disclosure Of Range Of Exercise Prices Of Outstanding Share Options [Line Items] | |||
Exercise price of outstanding share options | $ 2.50 | ||
2.50 - 10.00 | Maximum | |||
Disclosure Of Range Of Exercise Prices Of Outstanding Share Options [Line Items] | |||
Exercise price of outstanding share options | $ 10 | ||
10.01 - 20.00 | |||
Disclosure Of Range Of Exercise Prices Of Outstanding Share Options [Line Items] | |||
Number of options outstanding | shares | 336,500 | ||
Weighted average exercise price, options outstanding | $ 15.43 | ||
Weighted average remaining life of options (years), outstanding | yr | 1.64 | ||
Number of options exercisable | shares | 336,500 | ||
Weighted average exercise price, options exercisable | $ 15.43 | ||
Weighted average remaining life of options (years), exercisable | 1 year 7 months 21 days | ||
10.01 - 20.00 | Minimum | |||
Disclosure Of Range Of Exercise Prices Of Outstanding Share Options [Line Items] | |||
Exercise price of outstanding share options | $ 10.01 | ||
10.01 - 20.00 | Maximum | |||
Disclosure Of Range Of Exercise Prices Of Outstanding Share Options [Line Items] | |||
Exercise price of outstanding share options | $ 20 | ||
20.01 - 31.40 | |||
Disclosure Of Range Of Exercise Prices Of Outstanding Share Options [Line Items] | |||
Number of options outstanding | shares | 102,600 | ||
Weighted average exercise price, options outstanding | $ 31.20 | ||
Weighted average remaining life of options (years), outstanding | yr | 3.61 | ||
Number of options exercisable | shares | 102,600 | ||
Weighted average exercise price, options exercisable | $ 31.20 | ||
Weighted average remaining life of options (years), exercisable | 3 years 7 months 10 days | ||
20.01 - 31.40 | Minimum | |||
Disclosure Of Range Of Exercise Prices Of Outstanding Share Options [Line Items] | |||
Exercise price of outstanding share options | $ 20.01 | ||
20.01 - 31.40 | Maximum | |||
Disclosure Of Range Of Exercise Prices Of Outstanding Share Options [Line Items] | |||
Exercise price of outstanding share options | $ 31.40 |
Equity - Summary of Weighted Av
Equity - Summary of Weighted Average Assumptions Used for Valuation of Share Options Granted (Details) - yr | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Abstract] | ||
Risk-free interest rate | 1.20% | 1.00% |
Expected life of options | 4.5 | 5 |
Annualized volatility | 75.40% | 73.00% |
Forfeiture rate | 2.20% | 2.20% |
Dividend rate | 0.00% | 0.00% |
Equity - Schedule of Deferred S
Equity - Schedule of Deferred Share Units, Restricted Share Units and Performance Share Units under Long-Term Incentive Plan (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2017shares | |
Deferred Share Units | |
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |
Granted | 113 |
Ending balance | 113 |
Restricted Share Units | |
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |
Granted | 175 |
Ending balance | 175 |
Performance Share Units | |
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |
Granted | 175 |
Ending balance | 175 |
Equity - Schedule of Grants of
Equity - Schedule of Grants of Deferred Share Units, Restricted Share Units and Performance Share Units under Long-Term Incentive Plan (Details) | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Deferred Share Units | |
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |
Granted, Fair Value | $ 492 |
Change in value, Fair Value | (77) |
Ending balance, Fair Value | 415 |
Restricted Share Units | |
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |
Granted, Fair Value | 762 |
Change in value, Fair Value | (119) |
Ending balance, Fair Value | 643 |
Performance Share Units | |
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |
Granted, Fair Value | 1,318 |
Change in value, Fair Value | (228) |
Ending balance, Fair Value | $ 1,090 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Income Taxes [Abstract] | ||
Earnings before income taxes | $ 20,688 | $ 35,970 |
Combined Canadian federal and provincial income tax rates | 26.00% | 26.00% |
Expected income tax expense | $ 5,379 | $ 9,352 |
Items that cause an increase (decrease): | ||
Effect of different tax rates in foreign jurisdiction | 748 | 1,605 |
Non-deductible expenses and Mexico inflation adjustments | (199) | 1,480 |
Foreign exchange | (1,925) | (1,114) |
Utilization of previously unrecognized tax losses | (8,278) | |
Mexican special mining duty | 1,105 | 971 |
Withholding taxes | 424 | 470 |
Change in unrecognized deferred income tax assets | 2,243 | (1,266) |
Other | 1,015 | 1,012 |
Income tax expense | $ 8,790 | $ 4,232 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets And Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Deferred tax assets | $ 1,427 | $ 3,673 |
Deferred tax liabilities: | ||
Deferred tax liabilities | (9,399) | (7,027) |
Deferred tax liabilities, net | (7,972) | (3,354) |
Provision for Site Reclamation and Closure | ||
Deferred tax assets: | ||
Deferred tax assets | 1,427 | 1,950 |
Non-capital Losses | ||
Deferred tax assets: | ||
Deferred tax assets | 1,723 | |
Mineral Properties, Plant and Equipment, Exploration and Evaluation | ||
Deferred tax liabilities: | ||
Deferred tax liabilities | (5,186) | (1,949) |
Other | ||
Deferred tax liabilities: | ||
Deferred tax liabilities | (2,600) | (4,338) |
Mexican Special Mining Duty | ||
Deferred tax liabilities: | ||
Deferred tax liabilities | $ (1,613) | $ (740) |
Income Taxes - Schedule of Unre
Income Taxes - Schedule of Unrecognized Tax Losses, Deductible Temporary Differences, and Tax Credits (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure Of Unrecognized Tax Losses Deductible Temporary Differences And Tax Credits [Abstract] | ||
Non-capital losses | $ 90,200 | $ 82,645 |
Mineral properties, plant and equipment, exploration and evaluation | 114 | 301 |
Share issuance costs | 3,657 | 1,799 |
Unrecognized tax losses, deductible temporary differences, and tax credits | $ 93,971 | $ 84,745 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Income Taxes [Line Items] | ||
Unused tax losses | $ 90,200 | $ 82,645 |
Description of expiry date of unused tax losses | The Canadian losses, if not utilized, will expire beginning 2027 through to 2036, while the Mexican losses, if not utilized, will expire beginning 2018 through to 2027. | |
Canada | ||
Disclosure Of Income Taxes [Line Items] | ||
Unused tax losses | $ 42,635 | 38,144 |
Mexico | ||
Disclosure Of Income Taxes [Line Items] | ||
Unused tax losses | $ 55,977 | $ 50,860 |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | ||
Earnings for the period basic and diluted EPS | $ 11,898 | $ 31,738 |
Weighted average shares outstanding, Basic EPS | 39,409,369 | 32,098,930 |
Effect of dilutive securities, Share options | 172,570 | 67,178 |
Effect of dilutive securities, Warrants | 275,304 | 253,247 |
Weighted average shares outstanding, Diluted EPS | 39,857,243 | 32,419,355 |
Basic EPS | $ 0.30 | $ 0.99 |
Diluted EPS | $ 0.30 | $ 0.98 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2017shares | Dec. 31, 2016shares | Dec. 31, 2015shares | |
Earnings Per Share [Line Items] | |||
Number of options outstanding | 2,134,850 | 1,785,450 | 2,146,550 |
Anti-dilutive share options | 1,723,584 | 1,577,950 | |
Share Purchase Warrants | |||
Earnings Per Share [Line Items] | |||
Number of shares outstanding | 5,851,000 | 2,820,000 | |
Anti-dilutive common shares outstanding | 5,851,000 | 1,820,000 |
Supplemental Disclosure with 85
Supplemental Disclosure with Respect to Cash Flows - Additional Information (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Supplemental Disclosure With Respect To Cash Flows [Abstract] | ||
Cash | $ 31,474,000 | $ 20,045,000 |
Cash equivalents | $ 0 | $ 13,832,000 |
Supplemental Disclosure with 86
Supplemental Disclosure with Respect to Cash Flows - Schedule of Significant Non-cash Transactions (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Supplemental Disclosure With Respect To Cash Flows [Abstract] | |
Shares issued in lieu of termination benefits | $ 848 |
Shares issued on loan extinguishment | 134 |
Shares issued as payment of debenture interest | $ 80 |
Financial Instruments and Ris87
Financial Instruments and Risk Management - Additional Information (Details) $ in Thousands | Feb. 20, 2018GoldounceContract | Dec. 31, 2017USD ($)GoldounceContractshares | Dec. 31, 2016USD ($) |
Disclosure Of Financial Instruments [Line Items] | |||
Fair value of the derivative asset | $ | $ 21 | $ 1,875 | |
Gain (loss) on derivative contracts | $ | $ (1,848) | 2,003 | |
Percentage of change in foreign currencies assumption | 10.00% | ||
Increase (decrease) in earnings assuming change in foreign currencies | $ | $ 958 | 1,473 | |
Description of concentrations of risk | The Company has no concentrations of liquidity risk. | ||
Option Contract | |||
Disclosure Of Financial Instruments [Line Items] | |||
Number of open option contracts | 25,000 | ||
Contracts with expiry dates | May 29, 2018 | ||
Weighted average floor price | 1,250 | ||
Number of open option contracts unsettled | Contract | 20,000 | ||
Number of open option contracts expired | Contract | 5,000 | ||
Gain (loss) on derivative contracts | $ | $ 6 | 128 | |
Option Contract | Subsequent [Member] | Commodity price risks [Member] | |||
Disclosure Of Financial Instruments [Line Items] | |||
Contracts with expiry dates | Dec. 27, 2018 | ||
Weighted average floor price | 1,250 | ||
Weighted average sales price | 1,456 | ||
Number of open option contracts unsettled | Contract | 35,000 | ||
Total number of gold ounces placed | 35,000 | ||
Option Contract | Put Options | |||
Disclosure Of Financial Instruments [Line Items] | |||
Number of open option contracts settled | shares | 0 | ||
Option Contract | Call Options | |||
Disclosure Of Financial Instruments [Line Items] | |||
Number of open option contracts settled | shares | 5,000 | ||
Maximum | Option Contract | |||
Disclosure Of Financial Instruments [Line Items] | |||
Weighted average sales price | 1,405 | ||
Level 2 | Option Contract | |||
Disclosure Of Financial Instruments [Line Items] | |||
Fair value of the derivative asset | $ | $ 21 | $ 1,875 |
Financial Instruments and Ris88
Financial Instruments and Risk Management - Summary of Net Monetary Assets and Liabilities Held in Foreign Currencies (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure Of Financial Instruments [Line Items] | ||
Net monetary assets (liabilities) | $ 9,576 | $ 14,733 |
Canadian Dollar | ||
Disclosure Of Financial Instruments [Line Items] | ||
Net monetary assets (liabilities) | 4,173 | 12,427 |
Mexican Peso | ||
Disclosure Of Financial Instruments [Line Items] | ||
Net monetary assets (liabilities) | $ 5,403 | $ 2,306 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Transactions Between Related Parties [Abstract] | |
Related party transactions description | During the years ended December 31, 2017 and 2016, the Company did not enter into any transactions with related parties |
Related Party Transactions - Su
Related Party Transactions - Summary of Key Management Compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Transactions Between Related Parties [Line Items] | ||
Share-based payments | $ 476 | $ 672 |
Termination benefits | 385 | |
Key management personnel compensation | 2,313 | 2,561 |
Salaries and Benefits | ||
Disclosure Of Transactions Between Related Parties [Line Items] | ||
Key management compensation | 1,065 | 881 |
Bonuses | ||
Disclosure Of Transactions Between Related Parties [Line Items] | ||
Key management compensation | $ 387 | $ 1,008 |
Management of Capital - Summary
Management of Capital - Summary of Capital (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure Of Objectives Policies And Processes For Managing Capital [Abstract] | |||
Equity | $ 196,585 | $ 143,086 | $ 96,462 |
Equipment financing | 378 | ||
Gross consolidated equity and equipment financing | 196,585 | 143,464 | |
Less: Cash and cash equivalents | (31,474) | (33,877) | $ (11,499) |
Less: Short-term investments | (20,082) | ||
Net consolidated equity and equipment financing | $ 145,029 | $ 109,587 |
Commitments and Contingencies -
Commitments and Contingencies - Summary of Undiscounted Liabilities and Future Operating Commitments (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Maturity analysis of financial liabilities | ||
Trade payables and accrued liabilities | $ 24,796 | $ 17,187 |
Financial liabilities | 24,796 | |
Commitments | ||
Future operating commitments | 265,629 | |
Provision for site reclamation and closure | 5,337 | |
Other provisions | 1,584 | |
Commitments | 272,550 | |
Total financial liabilities and commitments | 297,346 | |
Within 1 Year | ||
Maturity analysis of financial liabilities | ||
Trade payables and accrued liabilities | 24,796 | |
Financial liabilities | 24,796 | |
Commitments | ||
Future operating commitments | 63,778 | |
Commitments | 63,778 | |
Total financial liabilities and commitments | 88,574 | |
2-5 Years | ||
Commitments | ||
Future operating commitments | 201,851 | |
Commitments | 201,851 | |
Total financial liabilities and commitments | 201,851 | |
Greater than 5 Years | ||
Commitments | ||
Provision for site reclamation and closure | 5,337 | |
Other provisions | 1,584 | |
Commitments | 6,921 | |
Total financial liabilities and commitments | $ 6,921 |
Commitments and Contingencies93
Commitments and Contingencies - Summary of Undiscounted Liabilities and Future Operating Commitments (Parenthetical) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Disclosure Of Commitments And Contingencies [Abstract] | |
Mining contract maturity period | 4 years |
Effective date of contract | Dec. 21, 2017 |
Annualized discount rate of contract | 2.30% |
Obligation Determined | $ 1,380 |
Segmented Information - Additio
Segmented Information - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2017SegmentCustomer | Dec. 31, 2016Customer | |
Disclosure Of Operating Segments [Line Items] | ||
Number of reportable operating segment | Segment | 2 | |
Number of major customers | Customer | 3 | 3 |
Percentage of revenue | 100.00% | 100.00% |
Mexico | ||
Disclosure Of Operating Segments [Line Items] | ||
Percentage of revenue | 100.00% | 100.00% |
Segmented Information - Schedul
Segmented Information - Schedule of Segmented Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Operating Segments [Line Items] | ||
Metal revenues | $ 105,162 | $ 123,873 |
Production costs | (69,818) | (74,717) |
Depreciation and depletion | (4,641) | (14,299) |
Corporate and administrative expenses | (8,637) | (7,607) |
Impairment reversal of mineral properties and other assets | 23,699 | |
Other | (13,593) | |
Earnings from operations | 22,066 | 37,356 |
Capital expenditures | 38,328 | 18,979 |
Total assets | 235,635 | 170,843 |
Total liabilities | 39,050 | 27,757 |
Operating Segments | San Francisco Mine | ||
Disclosure Of Operating Segments [Line Items] | ||
Metal revenues | 105,162 | 123,873 |
Production costs | (69,818) | (74,717) |
Depreciation and depletion | (4,641) | (14,299) |
Corporate and administrative expenses | (2,047) | (2,085) |
Impairment reversal of mineral properties and other assets | 23,699 | |
Earnings from operations | 28,656 | 56,471 |
Capital expenditures | 20,909 | 5,647 |
Total assets | 89,612 | 64,008 |
Total liabilities | 33,577 | 22,249 |
Operating Segments | Ana Paula Project | ||
Disclosure Of Operating Segments [Line Items] | ||
Capital expenditures | 17,256 | 13,154 |
Total assets | 107,196 | 88,427 |
Total liabilities | 3,028 | 1,791 |
Other | ||
Disclosure Of Operating Segments [Line Items] | ||
Corporate and administrative expenses | (6,590) | (5,522) |
Other | (13,593) | |
Earnings from operations | (6,590) | (19,115) |
Capital expenditures | 163 | 178 |
Total assets | 38,827 | 18,408 |
Total liabilities | $ 2,445 | $ 3,717 |
Segmented Information - Percent
Segmented Information - Percentage of Metal Revenues by Major Customers (Details) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Major Customers [Line Items] | ||
Percentage of revenue | 100.00% | 100.00% |
Customer A | ||
Disclosure Of Major Customers [Line Items] | ||
Percentage of revenue | 94.00% | 95.00% |
Customer B | ||
Disclosure Of Major Customers [Line Items] | ||
Percentage of revenue | 5.00% | 4.00% |
Customer C | ||
Disclosure Of Major Customers [Line Items] | ||
Percentage of revenue | 1.00% | 1.00% |
Segmented Information - Company
Segmented Information - Company's Metal Revenues from Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Products And Services [Abstract] | ||
Gold | $ 104,510 | $ 122,916 |
Silver by-product | 652 | 957 |
Metal revenues | $ 105,162 | $ 123,873 |