Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 20, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Current Fiscal Year End Date | --12-31 | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Transition Report | false | ||
Entity File Number | 001-39649 | ||
Entity Registrant Name | GATOS SILVER, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 27-2654848 | ||
Entity Address, Address Line One | 925 W Georgia Street | ||
Entity Address, Address Line Two | Suite 910 | ||
Entity Address, City or Town | Vancouver | ||
Entity Address, State or Province | BC | ||
Entity Address, Country | CA | ||
Entity Address, Postal Zip Code | V6C 3L2 | ||
City Area Code | (604) | ||
Local Phone Number | 424-0984 | ||
Title of 12(b) Security | Common Stock, par value $0.001 per share | ||
Trading Symbol | GATO | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | true | ||
ICFR Auditor Attestation Flag | false | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 178,256,662 | ||
Entity Common Stock, Shares Outstanding | 69,181,047 | ||
Entity Central Index Key | 0001517006 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Name | Ernst & Young LLP |
Auditor Location | Toronto, Canada |
Auditor Firm ID | 1263 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current Assets | ||
Cash and cash equivalents | $ 55,484 | $ 17,004 |
Related party receivables | 560 | 1,773 |
Other current assets | 22,642 | 16,871 |
Total current assets | 78,686 | 35,648 |
Non-Current Assets | ||
Investment in affiliates | 321,914 | 347,793 |
Deferred tax assets | 266 | 0 |
Other non-current assets | 38 | 60 |
Total Assets | 400,904 | 383,501 |
Current Liabilities | ||
Accounts payable, accrued and other liabilities | 33,357 | 26,358 |
Non-Current Liabilities | ||
Credit Facility, net of debt issuance costs | 0 | 8,661 |
Stockholders’ Equity | ||
Common Stock, $0.001 par value; 700,000,000 shares authorized; 69,181,047 and 69,162,223 shares outstanding as of December 31, 2023 and December 31, 2022, respectively | 117 | 117 |
Paid-in capital | 553,319 | 547,114 |
Accumulated deficit | (185,889) | (198,749) |
Total stockholders’ equity | 367,547 | 348,482 |
Total Liabilities and Stockholders’ Equity | $ 400,904 | $ 383,501 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 700,000,000 | 700,000,000 |
Common stock, shares, outstanding (in shares) | 69,181,047 | 69,162,223 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Expenses | ||
Exploration | $ 26 | $ 110 |
General and administrative | 25,688 | 25,468 |
Amortization | 79 | 180 |
Total expenses | 25,793 | 25,758 |
Other income (expense) | ||
Equity income in affiliates | 33,622 | 45,230 |
Legal settlement loss | (1,500) | (7,900) |
Interest expense | (679) | (433) |
Interest income | 1,332 | 154 |
Other income | 5,992 | 4,801 |
Total net other income | 38,767 | 41,852 |
Income before taxes | 12,974 | 16,094 |
Income tax expense | 114 | 1,565 |
Net income | 12,860 | 14,529 |
Comprehensive income | $ 12,860 | $ 14,529 |
Net income per share: | ||
Basic (in dollars per share) | $ 0.19 | $ 0.21 |
Diluted (in dollars per share) | $ 0.18 | $ 0.21 |
Weighted average shares outstanding: | ||
Basic (in shares) | 69,163,564 | 69,162,223 |
Diluted (in shares) | 69,536,298 | 69,309,019 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Stock options | Deferred Stock Units | Common Stock | Paid-in Capital | Paid-in Capital Stock options | Paid-in Capital Deferred Stock Units | Accumulated deficit |
Beginning balance, common stock (in shares) at Dec. 31, 2021 | 69,162,223 | |||||||
Equity, attributable to parent, beginning balance at Dec. 31, 2021 | $ 331,222 | $ 117 | $ 544,383 | $ (213,278) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock-based compensation and Deferred Stock Unit compensation | 2,731 | 2,731 | ||||||
Net income | $ 14,529 | 14,529 | ||||||
Ending balance, common stock (in shares) at Dec. 31, 2022 | 69,162,223 | 69,162,223 | ||||||
Equity, attributable to parent, ending balance at Dec. 31, 2022 | $ 348,482 | $ 117 | 547,114 | (198,749) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock-based compensation and Deferred Stock Unit compensation | $ 5,336 | $ 869 | $ 5,336 | $ 869 | ||||
Deferred Stock Units converted to common stock (in shares) | 18,824 | |||||||
Net income | $ 12,860 | 12,860 | ||||||
Ending balance, common stock (in shares) at Dec. 31, 2023 | 69,181,047 | 69,181,047 | ||||||
Equity, attributable to parent, ending balance at Dec. 31, 2023 | $ 367,547 | $ 117 | $ 553,319 | $ (185,889) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
OPERATING ACTIVITIES | ||
Net income | $ 12,860 | $ 14,529 |
Adjustments to reconcile net loss to net cash used by operating activities: | ||
Amortization | 79 | 180 |
Stock-based compensation expense | 5,336 | 2,840 |
Equity income in affiliates | (33,622) | (45,230) |
Other | 1,159 | 199 |
Deferred tax recovery | (266) | 0 |
Dividends from affiliates | 0 | 30,775 |
Changes in operating assets and liabilities: | ||
Receivables from related‑parties | 1,213 | (180) |
Accounts payable and other accrued liabilities | 6,992 | 24,632 |
Other current assets | (5,771) | (13,191) |
Net cash (used) provided by operating activities | (12,020) | 14,554 |
INVESTING ACTIVITIES | ||
Purchase of property, plant and equipment | 0 | (60) |
Capital distributions received from affiliate | 59,500 | 0 |
Net cash provided (used) by investing activities | 59,500 | (60) |
FINANCING ACTIVITIES | ||
Credit Facility repayment | (9,000) | (4,000) |
Financing costs | 0 | (106) |
Net cash used by financing activities | (9,000) | (4,106) |
Net increase in cash and cash equivalents | 38,480 | 10,388 |
Cash and cash equivalents, beginning of period | 17,004 | 6,616 |
Cash and cash equivalents, end of period | 55,484 | 17,004 |
Interest paid | 417 | 645 |
Supplemental disclosure of noncash transactions: | ||
Recognition of Right of Use Asset and Lease Liability | $ 0 | $ 128 |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business Organization and Nature of Business Gatos Silver, Inc. and its subsidiaries (“Gatos Silver” or “the Company”) is a silver dominant exploration, development and production company that discovered a new silver, lead and zinc-rich mineral district in southern Chihuahua State, Mexico. The Company’s primary efforts are focused on the operation of the Los Gatos Joint Venture (“LGJV”) in Chihuahua, Mexico. On January 1, 2015, the Company entered into the LGJV to develop the Los Gatos District (“LGD”) with Dowa Metals and Mining Co., Ltd. (“Dowa”). The LGJV Operating entities consisted of Minera Plata Real S. de R.L. de C.V (“MPR”), Operaciones San Jose del Plata S. de R.L. de C.V. and Servicios San Jose del Plata S. de R.L. de C.V. (“Servicios”) (collectively, the “LGJV Entities”). Effective July 15, 2021, Servicios was merged into MPR. Dowa acquired a 30% interest in the LGJV and the right to purchase future zinc-concentrate production at market rates by completing its $50,000 funding requirement on April 1, 2016. The LGJV completed a feasibility study in January 2017 and the latest Los Gatos Technical Report was filed on October 20, 2023, with an effective date of July 1, 2023. In May 2019, Dowa increased its ownership interest by 18.5% to 48.5% through the conversion of the Dowa MPR Loan to equity. On March 11, 2021, the Company repurchased the 18.5% interest from Dowa for a total consideration of $71,550, including Dowa holding costs of this incremental interest, increasing the Company’s ownership in the LGJV Entities to 70.0%. These transactions resulted in a $47,400 higher basis than the underlying net assets of the LGJV Entities. See Note 10 - Commitment, Contingencies and Guarantees for further discussion. The LGJV ownership is currently 70% Gatos Silver and 30% Dowa ("LGJV Partners"). Despite owning the majority interest in the LGJV, the Company does not exercise control over the LGJV due to certain provisions contained in the Unanimous Omnibus Partner Agreement that currently require unanimous partner approval of all major operating decisions, as a result the Company accounts for the LGJV as an equity method investment. On September 1, 2019, the LGJV commenced commercial production of its two concentrate products: a lead concentrate and a zinc concentrate. The LGJV’s lead and zinc concentrates are currently sold to third-party customers. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Consolidation and Presentation The accompanying consolidated financial statements of the Company have been prepared in accordance with United States Generally Accepted Accounting Principles (“GAAP”) and include the accounts of Gatos Silver and its subsidiaries, GSC and MLS. All Company subsidiaries are consolidated. All significant intercompany balances and transactions have been eliminated. Equity method investment The Company accounts for its investment in affiliates using the equity method of accounting whereby, after valuing the initial investment, the Company recognizes its proportional share of results of operations of the affiliate in its consolidated financial statements. The value of equity method investments are adjusted if it is determined that there is an other-than-temporary decline in value. The Company’s investment in the LGJV Entities is presented as Investment in affiliates in the consolidated balance sheet. The basis difference between the carrying amount of the investment in affiliates and the Company’s equity in the LGJV Entities’ net assets is due to value of the LGJV mineral resources. This basis difference is amortized on a units of production basis as the mineral resource is mined. Dividends received are recorded as an operating cash flow. Returns on capital distributions are recorded as an operating cash flow whereas returns of capital distributions are recorded as an investing cash flow. Use of estimates The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates are valuation of stock and stock options; valuation allowances for deferred tax assets; and the fair value of financial instruments and investment in affiliates. At the LGJV, significant items subject to such estimates and assumptions include mineral properties, life of mine revenue and cost assumptions, mineral resource conversion rates to mineral reserves; environmental reclamation and closure obligations and valuation allowances for deferred tax assets. Functional currency and translation of foreign currencies The U.S. dollar is the functional currency of the Company and its subsidiaries. Monetary assets and liabilities denominated in foreign currencies are translated to U.S. dollars at exchange rates in effect at the balance sheet date, with the resulting gains or losses reported in foreign exchange (gain) loss in the statement of income. Non-monetary assets and liabilities are translated at historical exchange rates. Expenses and income items denominated in foreign currencies are translated into U.S. dollars at historical exchange rates. Cash and cash equivalents The Company considers all highly liquid short-term investments with a maturity of three months or less when purchased to be cash equivalents. Other than temporary impairment - investment A loss in value of an investment that is other than a temporary decline shall be recognized. Evidence of such losses might include, but are not limited to, absence of an ability to recover the carrying amount of the investment or inability of the investee to sustain an earnings capacity that would justify the carrying amount of the investment. A current fair value of an investment that is less than its carrying amount may indicate a loss in value of the investment. If circumstances require an investment is tested for an other than temporary decline in value, the Company will first estimate the fair value of the investment based on discounted cash flows then compare it to the carrying value of the investment. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. Stock-based compensation The Company recognizes all employee stock-based compensation as a cost in the consolidated financial statements. Equity-classified awards are measured at the grant date fair value of the award. Stock-based compensation expense is included as a component of general and administrative expense over the requisite service period of the award. The fair value of stock options is estimated using the Black-Scholes option-pricing model. The initial fair value of performance share units (“PSUs”), which are subject to vesting based on the Company’s attainment of a pre-established market performance goals, is estimated using a Monte Carlo simulation valuation model. The fair value of Restricted Stock Units ("RSUs") is based on the Company's stock price on the date of grant and vest on the third anniversary of the grant date, unless otherwise specified. The fair value of Deferred Stock Units ("DSUs") is based on the Company's stock price on the date of the grant and DSUs vest on the grant date. The Company’s estimates may be impacted by certain variables including, but not limited to, stock price volatility, estimates of forfeitures, the risk-free interest rate, expected dividend yields, and the Company’s performance. The Company estimates forfeitures of stock-based awards based on historical data and periodically adjusts the forfeiture rate. Net income per share Basic and diluted earnings per share are presented for net income attributable to common shareholders. Basic net earnings per share is computed by dividing the net income available to common stockholders by the weighted-average number of common stock shares outstanding, for the respective period presented. Diluted net earnings per share is computed similarly, except that weighted-average common shares is increased to reflect the potential dilution that would occur if stock options were exercised, or DSUs, RSUs and PSUs were converted into common stock. The effects of the Company’s dilutive securities are excluded from the calculation of diluted weighted-average common shares outstanding if their effect would be anti-dilutive based on the treasury stock method or due to a net loss. Income taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. Current tax comprises the expected tax payable on the taxable income for the year and any adjustments to the tax payable or receivable in respect of previous years. The amount of current tax payable is the best estimate of the tax amount expected to be paid that reflects uncertainty related to income taxes, if any. It is measured using tax rates enacted at the reporting date. Recently issued and adopted accounting standards In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”) followed by ASU No. 2021-01, Reference Rate Reform (Topic 848): Scope (“ASU 2021-01”), issued in January 2021, to provide clarifying guidance regarding the scope of Topic 848. ASU 2020-04 was issued to provide optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform. Generally, the guidance is to be applied as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. ASU 2020-04 and ASU 2021-01 are effective for all entities through December 31, 2023. The Company has not elected to use the optional guidance and continues to evaluate the options provided by ASU 2020-04 and ASU 2021-01. The Company concluded that this update does not have a material impact on its financial statements. In September 2022, the FASB issued ASU 2022-04, Liabilities — Supplier Finance Programs (Subtopic 405-50): Disclosures of Supplier Finance Program Obligations. The ASU requires entities that use supplier finance programs (that are in the scope of the ASU) in connection with the purchase of goods and services to disclose sufficient information about the program to allow a user of financial statements to understand the program’s nature, activity during the period, changes from period to period and potential magnitude. The amendments are effective for all entities for fiscal years beginning after 15 December 2022, including interim periods within those fiscal years, except for the amendment on roll forward information, which is effective for fiscal years beginning after December 15, 2023. Early adoption is permitted. In the period of initial adoption, the amendments should be applied retrospectively to all periods in which a balance sheet is presented, except for the roll forward requirement, which should be applied prospectively. The Company assessed the new guidance and concluded that this update does not have any impact on the financial statements. In October 2023, the FASB issued ASU No. 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative. The amendments in this update modify the disclosure or presentation requirements of a variety of Topics in the Codification. Certain amendments represent clarifications to or technical corrections of the current requirements. Each amendment in the ASU will only become effective if the SEC removes the related disclosure or presentation requirement from its existing regulations by June 30, 2027. The Company is still assessing the impact of the standard. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280). The amendments in this update improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments of this udpate are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is still assessing the impact of this standard. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740). The amendments in this update related to the rate reconciliation and income taxes paid disclosures improve the transparency, effectiveness and comparability of income tax disclosures. For public business entities, the amendments in this update are effective for annual periods beginning after December 15, 2024. The Company is still assessing the impact of this standard. As of December 31, 2023, there are no additional recently issued or adopted accounting standard that could have a material impact on our financial statements. |
Other Current Assets
Other Current Assets | 12 Months Ended |
Dec. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Current Assets | Other Current Assets December 31, 2023 December 31, 2022 Value added tax receivable $ 691 $ 730 Prepaid expenses 1,914 2,890 Insurance proceeds receivable 20,000 13,100 Other assets 37 151 Total other current assets $ 22,642 $ 16,871 |
Property, Plant and Equipment,
Property, Plant and Equipment, net | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, net | Property, Plant and Equipment, net Mineral Properties Mining Concessions In Mexico, mineral concessions from the Mexican government can only be held by Mexican nationals or Mexican-incorporated companies. The concessions are valid for 50 years and are extendable provided the concessions are kept in good standing. For concessions to remain in good standing a semi-annual fee must be paid to the Mexican government and an annual report describing the work accomplished on the property must be filed. These concessions may be cancelled without penalty with prior notice to the Mexican government. MLS is the concession holder of a series of claims titles granted by the Mexican government. Santa Valeria Concession The Company holds Santa Valeria concessions. If production commences, the Company is required to make a production royalty payment of 1% of the net smelter returns. The Company may terminate the agreement upon prior notice. The Company made no mineral lease payments in the years ended December 31, 2023 and 2022. |
Accounts Payable, Accrued and O
Accounts Payable, Accrued and Other Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Accounts Payable, Accrued and Other Liabilities | Accounts Payable, Accrued and Other Liabilities December 31, 2023 December 31, 2022 Accounts payable $ 2,713 $ 586 Accrued expenses 3,031 2,761 Accrued compensation 3,215 1,889 Legal settlement payable 24,000 21,000 Current tax payable 387 — Other liabilities 11 122 Total accounts payable, accrued and other liabilities $ 33,357 $ 26,358 The legal settlement payable is the liability recorded for the settlements of the class action lawsuit. See Note 10 Commitments, Contingencies and Guarantees, for further discussion on the U.S. and Canadian class action lawsuits and related settlement discussion. |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | Related-Party Transactions LGJV Under the Unanimous Omnibus Partner Agreement, the Company provides certain management and administrative services to the LGJV. The Company earned $6,000 and $5,000 under this agreement for the years ended December 31, 2023 and 2022, respectively, which have been recorded on the statement of income under other income. The Company received $6,417 and $5,417 in cash from the LGJV under this agreement for the years ended December 31, 2023 and 2022, respectively. The Company had receivables under this agreement of nil and $417 as of December 31, 2023 and 2022, respectively. The Company also incurs certain LGJV costs that are subsequently reimbursed by the LGJV. The Company seconds certain employees to the LGJV and charged $2,627 and $2,399 related to this arrangement in the years ended December 31, 2023 and 2022, respectively. The Company received $3,489 in cash and had a $250 receivable outstanding at December 31, 2023, and received $1,431 in cash and had $1,112 receivable outstanding at December 31, 2022, related to this arrangement. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity The Company is authorized to issue 700,000,000 shares of $0.001 par value common stock and 50,000,000 shares of $0.001 par value preferred stock. As of December 31, 2023, 69,181,047 shares of common stock are outstanding, and no shares of preferred stock are outstanding. Stock-Based Compensation Equity Compensation Plan The Company has a Long-Term Incentive Plan under which options and shares of the Company’s common stock are authorized for grant or issuance as compensation to eligible employees, consultants, and members of the Board of Directors. Awards under the plan include stock options, stock appreciation rights, stock awards, deferred stock units, and performance awards. Stock options, performance share units, restricted stock units and deferred stock units have been granted by the Company in different periods. As of December 31, 2023, approximately 10.3 million shares of common stock were available for grant under the plan. The Company recognized stock-based compensation expense as follows: Year ended December 31, 2023 2022 Stock options $ 4,087 $ 2,621 Performance share units 203 219 Restricted stock units 1,046 — Total stock-based compensation $ 5,336 $ 2,840 Stock Option Transactions The Company’s stock options have a contractual term of 10 years and entitle the holder to purchase shares of the Company’s common stock. The stock options granted to the Company’s employees have a service period of three years. The stock options granted to non-employee directors vest immediately. The Company granted 1,132,520 stock options on September 11, 2023, and 134,225 stock options on November 9, 2023, with the weighted-average grant-date fair value per share of $2.93 and $2.77, respectively. In 2022, 100,000 stock options were granted with a weighted-average grant-date fair value per share of $5.83. The stock options granted in September 2023 represented a portion of 2022 compensation due to the Company being in an extended blackout period in 2022 and a portion of 2023. Of the stock options granted in 2023, 604,799 vested immediately, including stock options granted to non-employee directors. No stock options were exercised during the years ended December 31, 2023 and 2022. On December 31, 2023, there was $2,087 of unrecognized stock-based compensation expense related to stock options is expected to be recognized over a weighted-average period of 1.2 years. The following table summarizes the respective vesting start dates and number of options granted to employees and directors in 2023 and 2022: Recipient Options Granted Vesting Start Date Grant Date Employees 100,000 January 18, 2022 January 18, 2022 Employees 1,044,705 September 11, 2023 September 11, 2023 Directors 87,815 September 11, 2023 September 11, 2023 Directors 134,225 November 9, 2023 November 9, 2023 The following assumptions were used to compute the fair value of the options granted using the Black-Scholes option valuation model: Jan. 2022 Sep. 2023 Nov. 2023 Risk-free interest rate 1.74 % 4.39 % 4.52 % Dividend yield — — — Estimated volatility 60.75 % 57.67 % 57.85 % Expected option life 6 years 6 years 6 years The Company’s estimated volatility computation was based on the historical volatility of a group of peer companies’ common stock over the expected option life and included both exploration stage and development stage companies. Prior to our IPO in October 2020, the Company's common stock was not publicly traded. As a result, the expected volatility assumption was based on peer information due to insufficient market trading history required to calculate a meaningful volatility factor. The computation of the expected option life was determined based on a reasonable expectation of the option life prior to being exercised or forfeited. The risk-free interest rate assumption was based on the U.S. Treasury constant maturity yield at the date of the grant over the expected life of the option. No dividends were expected to be paid. The following tables summarize the stock option activity for the year ended December 31, 2023: Employee & Director Options Options Weighted‑ Average Exercise Price Aggregate Intrinsic Value Weighted‑ Average Remaining Life (Years) Outstanding at December 31, 2022 1,701,530 $ 12.67 Granted 1,266,745 $ 5.01 Forfeited (289,760) $ 13.99 Expired (62,000) $ 12.00 Outstanding at December 31, 2023 2,616,515 $ 8.83 $ 2,090 9.86 Vested at December 31, 2023 1,848,486 $ 9.69 $ 2,053 9.07 The total fair value of stock options vested during the year ended December 31, 2023, was $6,344. At December 31, 2023, the Company had 32,393 LGJV-personnel stock options outstanding with weighted-average exercise price of $7.31 and weighted-average remaining life 2.0 years. There were no grants or exercises in the year ended December 31, 2023. Performance Share Unit Transactions On December 17, 2021, 119,790 PSUs were granted to the Company’s employees with a weighted average grant date fair value per share of $14.22. As at December 31, 2023, there were 40,802 PSUs outstanding. On December 31, 2023, unrecognized compensation expense related to the PSUs was $166, which is expected to be recognized over a weighted-average period of 1.0 year. There were no grants in the year ended December 31, 2023. Restricted Stock Unit Transaction s RSUs granted are reported as equity awards with a fair value of each RSU equal to the fair value of the Company's common stock on the grant date and vest on the third anniversary of the grant date or employee start date, in respect of the below-referred grants. Each earned RSU represents the right to receive one share of the Company's common stock. On September 11, 2023, the Company granted 925,172 RSUs with grant date fair value of $5.04 and have varying vesting dates due to the Company being in an extended blackout period in 2022 and a portion of 2023. Compensation expense is recognized ratably from the grant date over the requisite vesting period. On December 31, 2023, unrecognized compensation expense related to the RSUs was $3,617, which is expected to be recognized over a weighted-average period of 1.3 years. Deferred Stock Unit Transactions DSUs are awarded to non-employee directors at the discretion of the Board of Directors. The DSUs are fully vested on the grant date and each DSU entitles the holder to receive one share of the Company’s common stock upon the director’s cessation of continuous service. Non-employee directors are eligible to elect to defer receipt of any portion of annual retainers or meeting fees and take payment in the form of DSUs. The DSU entitles the holder to receive one share of the Company’s common stock at either a date specified in the deferral election or cessation of service, whichever comes first. The fair value of DSUs are equal to the fair value of the Company’s common stock on the grant date. The Company granted 174,948 DSUs during the year ended December 31, 2023 and nil during the year ended December 31, 2022. The 2023 grant included DSU compensation related to 2022 that could not be issued due to the Company being in an extended blackout period in 2022 and a portion of 2023. Director DSUs Shares Weighted‑ Average Grant Price Outstanding at December 31, 2022 146,796 $ 10.88 Granted 174,948 $ 4.97 Converted to common stock (18,824) $ 6.13 Outstanding at December 31, 2023 302,920 $ 7.76 The Company recognized DSU expense of $626 and $239 for the years ended December 31, 2023 and 2022, respectively. The DSU expenses accrued for in 2022 during the blackout period were subsequently granted in 2023. In December 2023, 18,824 DSUs were converted to common stock. At December 31, 2023, 302,920 DSUs remain outstanding with a weighted-average grant date fair value of $7.76 per unit. |
Net Income per Share
Net Income per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Income per Share | Net Income per Share Basic net income per share is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed similarly, except that weighted-average common shares are increased to reflect the potential dilution that would occur if stock options were exercised or PSUs, DSUs or RSUs were converted into common stock. The dilutive effects are calculated using the treasury stock method. For the year ended December 31, 2023, all in-the-money stock options, PSUs, RSUs and DSUs have been included in the dilutive earnings per common share calculation. For the year ended December 31, 2022, all options and PSUs were excluded from the diluted earnings per common share calculation as the shares would be anti-dilutive. A reconciliation of basic and diluted earnings per common share is presented below: Year Ended December 31, 2023 2022 Net income $ 12,860 $ 14,529 Weighted average shares: Basic 69,163,564 69,162,223 Effect of dilutive stock options 1,493 — Effect of dilutive PSUs 8,364 — Effect of dilutive RSUs 174,849 — Effect of dilutive DSUs 188,028 146,796 Diluted 69,536,298 69,309,019 Net income per share: Basic $ 0.19 $ 0.21 Diluted $ 0.18 $ 0.21 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company establishes a framework for measuring the fair value of assets and liabilities in the form of a fair value hierarchy that prioritizes the inputs into valuation techniques used to measure fair value into three broad levels. This hierarchy gives the highest priority to unadjusted quoted prices in active markets and the lowest priority to unobservable inputs. Further, financial assets and liabilities should be classified by level in their entirety based upon the lowest level of input that was significant to the fair value measurement. The three levels of the fair value hierarchy are as follows: Level 1: Unadjusted quoted market prices in active markets for identical assets or liabilities that are accessible at the measurement date. Level 2: Quoted prices in inactive markets for identical assets or liabilities, quoted prices for similar assets or liabilities in active markets, or other observable inputs either directly related to the asset or liability or derived principally from corroborated observable market data. Level 3: Unobservable inputs due to the fact there is little or no market activity. This entails using assumptions in models which estimate what market participants would use in pricing the asset or liability. The Company’s financial assets and liabilities such as cash and cash equivalents, related party receivables, value added tax receivable, insurance proceeds receivable, accounts payable and debt are approximate fair value due to their short maturities and are classified within Level 1 of the fair value hierarchy. Assets and Liabilities that are Measured at Fair Value on a Non-recurring Basis The Company discloses and recognizes its non-financial assets and liabilities at fair value on a non-recurring basis and makes adjustments to fair value, as needed (for example, when there is evidence of impairment). |
Commitments, Contingencies and
Commitments, Contingencies and Guarantees | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Guarantees | Commitments, Contingencies and Guarantees In determining its accruals and disclosures with respect to loss contingencies, the Company will charge to income an estimated loss if information available prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. Legal expenses associated with the commitments and contingencies are expensed as incurred. If a loss contingency is not probable or reasonably estimable, disclosure of the loss contingency is made in the combined financial statements when it is at least reasonably possible that a material loss could be incurred. Environmental Contingencies The Company’s mining and exploration activities are subject to various laws, regulations and permits governing the protection of the environment. These laws, regulations and permits are continually changing and are generally becoming more restrictive. The Company has made, and expects to make in the future, expenditures to comply with such laws, regulations and permits, but cannot predict the full amount of such future expenditures. Legal On February 22, 2022, a purported Company stockholder filed a putative class action lawsuit in the United States District Court for the District of Colorado against the Company, certain of our former officers, and several directors (the “U.S. Class Action”). An amended complaint was filed on August 15, 2022. The amended complaint, allegedly brought on behalf of certain purchasers of the Company’s common stock and certain traders of call and put options on the Company’s common stock from December 9, 2020 through January 25, 2022, seeks, among other things, damages, costs, and expenses, and asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 as well as Sections 11 and 15 of the Securities Act of 1933. The amended complaint alleges that certain individual defendants and the Company, pursuant to the control and authority of the individual defendants, made false and misleading statements and/or omitted certain material information regarding the mineral resources and reserves at the Cerro Los Gatos mine. The Company and all defendants filed a motion to dismiss this action on October 14, 2022. That motion was fully briefed as of December 23, 2022. On April 26, 2023, following a joint motion, the Court ordered that it would postpone a ruling on defendants’ motion to dismiss until on or after June 16, 202 3. On June 13, 2023, the Company entered into an agreement in principle to settle the U.S. Class Action. Subject to certain conditions, including class certification by the District Court, the execution of a definitive stipulation of settlement and approval of the settlement by the District Court, the settling parties agreed to resolve the U.S. Class Action for a payment by us and our insurers of $21.0 million to a settlement fund. On June 16, 2023, the parties filed a joint status report requesting that the Court grant a temporary stay of all proceedings in the case pending submission of proposed settlement documentation on or before July 13, 2023. On July 13, 2023, the plaintiffs filed an unopposed motion for an order preliminarily approving the settlement agreed by the parties and providing for class notice which will provide for (i) preliminary approval of the settlement; (ii) approval of the form and manner of giving notice of the settlement to the settlement class; and (iii) a hearing date and time to consider approval of the Settlement and related matters (the “Preliminary Order”). On September 12, 2023, the plaintiffs filed an unopposed motion for to amend the Preliminary Order to reflect certain changes to the form of release proposed to be executed by the plaintiffs. On January 26, 2024, the parties jointly requested a status conference with the District Court to discuss the status of the pending motion for preliminary approval or, in the alternative, for the District Court to grant the motion. As of January 5, 2024, our insurers have recognized $7,470 in costs that apply to the $10,000 retention. Accordingly, on this basis, assuming settlement payments in respect of the U.S. Class Action are required to be made before payments in the respect of the Canadian Class Action (discussed below), we expect to fund no more than $2,530 of the settlement, with the balance of the settlement payment to be paid by insurance. The Company and the other defendants will not admit any liability as part of the settlement. Since the settlement of the U.S. Class Action is subject to conditions, there can be no assurance that the U.S. Class Action will be finally resolved pursuant to the agreement in principle that has been reached. By Notice of Action issued February 9, 2022, and subsequent Statement of Claim dated March 11, 2022, Izabela Przybylska (the "Plaintiff") commenced a putative class action against the Company, certain of its former officers and directors, and others in the Ontario Superior Court of Justice on behalf of a purported class of all persons or entities, wherever they may reside or be domiciled, who acquired securities of the Company in both the primary and secondary markets during the period from October 28, 2020 until January 25, 2022 (the "Canadian Class Action"). The action asserts claims under Canadian securities legislation and at common law and seeks unspecified monetary damages and other relief in respect of allegations the defendants made false and misleading statements and omitted material information regarding the mineral resources and reserves of the Company. On January 26, 2024, counsel for us and the Plaintiff executed a term sheet wherein any claims against us and the named individuals would be settled for a payment by us of $3,000, accrued at December 31, 2023. The Company will not admit any liability as part of the settlement. The definitive settlement is being finalized. Accordingly, on the basis of the costs recognized by the insurers to January 5, 2024, and assuming settlement payments in respect of the U.S. Class Action are required to be made before payments in the respect of the Canadian Class Action, the Company would fund $1,470 of this settlement. Since the settlements of the U.S. Class Action and the Canadian Class Action are subject to conditions, there can be no assurance that either the U.S. Class Action or the Canadian Class Action will be finally resolved pursuant to the agreements that have been reached. Further, the Company has made a disclosure to the US Department of Justice and the SEC regarding its January 25, 2022 press release and issues related to CLG’s mineral reserves and mineral resources at the time. The Company is cooperating with those agencies’ investigations and cannot reasonably predict any outcome. There can be no assurance that any of the foregoing matters individually or in aggregate will not result in outcomes that are materially adverse for us. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt On July 12, 2021, the Company entered into a $50,000 Revolving Credit Facility (the “Credit Facility”) with Bank of Montreal ("BMO"). On December 13, 2023, the Company entered into a second amended and restated Credit Facility with BMO. The main changes to the terms of the agreement are as follows: • the maturity date was extended to December 31, 2026; • $50,000 revolving line of credit with an accordion feature, which allows for an increase in the total line of credit up to $100,000, subject to certain conditions; • loans under the Credit Facility bear interest at a rate equal to either a term SOFR rate plus a margin ranging from 2.75% to 3.75%, or a U.S. base rate plus a margin ranging from 1.75% to 2.75%, at our option; • Any drawdown is secured by the Company's assets including the Company's shares in the LGJV Entities. On July 21, 2023, the Company repaid the full outstanding balance of $9,000 on the Credit Facility. As a result, the outstanding debt balance was $nil at December 31, 2023. The Company was in compliance with all covenants under the Credit Facility as of December 31, 2023. The Company recognized interest expense of $679, amortization of debt issuance cost of $57 and paid $413 in interest for the year ended December 31, 2023. The Company recognized interest expense of $433, amortization of debt issuance cost of $147 and paid $645 in interest for the year ended December 31, 2022. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income from operations before income taxes were as follows for the years ended December 31: 2023 2022 U.S. $ 13,606 $ 19,111 Foreign (632) (3,017) Total $ 12,974 $ 16,094 The consolidated income tax expense consisted of $114 and $1,565, for the years ended December 31, 2023 and 2022, respectively. A reconciliation of the actual income tax benefit and the tax computed by applying the applicable U.S. federal rate of 21% to the income before taxes is as follows for the years ended December 31: 2023 2022 Tax provision from operations $ 2,725 $ 3,380 State tax benefit from operations 8 20 Nondeductible expenses 1,298 (594) Change in valuation allowance (3,908) (3,410) Mexican withholding tax — 1,565 Effect of change in tax rates — 927 US/foreign tax rate differential (9) (323) Total income tax expense $ 114 $ 1,565 Total income tax expense for the year 2023 arose from the operations of Gatos Silver Canada Corporation. The components of the deferred tax assets (liabilities) are summarized as follows for the year ended December 31: 2023 2022 Deferred tax assets Accrued compensation $ 18 $ 354 Contingent liabilities 5,046 1,661 Deferred share unit awards 835 461 LGJV equity investment — 12,656 Other accrued liabilities 21 21 Mineral properties 2,009 2,009 U.S. operating loss carryforward 19,079 10,234 Stock options 9,596 8,917 Foreign operating loss carryforward 4,804 4,129 Exploration and development — 41 Other 260 24 Valuation allowances (38,672) (39,738) Total deferred tax assets $ 2,996 $ 769 Deferred tax liabilities Accrued bonus (280) — LGJV equity investment (1,485) — Property, plant and equipment (178) (218) Exploration and development (18) — Prepaid expenses (769) (551) Total deferred tax liabilities $ (2,730) $ (769) Deferred tax assets (liabilities) $ 266 $ — The realization of deferred income tax assets is dependent upon the generation of sufficient taxable income during future periods in which the temporary differences are expected to reverse. Based upon the level of taxable income (loss) and projections of future taxable income (loss) over the periods in which the deferred tax assets are deductible, management believes it is more likely than not that the Company will not realize the benefits of these deductible differences, and thus has recorded a valuation allowance from continuing operations against the deferred tax asset balances of $38,672 and $39,738, respectively, for the years ended December 31, 2023 and 2022. If the Company is profitable for a number of years, and the prospects for the realization of the deferred tax assets become more likely than not, the Company will then reverse all or a portion of the valuation allowance that could result in a reduction of future reported income tax expense. At December 31, 2023, the Company had $90,751 of net operating loss carryforwards from continuing operations in the United States. Of the total net operating loss from continuing operations, $72,408 expire at various dates through 2037, and $18,343 may be carried forward indefinitely. There are also $17,126 of net operating loss carryforwards in Mexico which expire at various dates through 2033. No assets have been recognized for net operating loss carryforwards where the Company believes it is more likely than not that the net operating losses will not be realized. The Company will monitor the valuation on an ongoing basis and will make the appropriate adjustments as necessary should circumstances change. The Company has adopted the provisions of ASC 740-10, Income Taxes. The Company files income tax returns in the U.S., Mexico, Canada and Colorado. The Company’s foreign assets and operations are owned by entities that have elected to be treated for U.S. tax purposes as corporations and, as a result, the taxable income or loss and other tax attributes of such entities are not included in the Company’s U.S. federal consolidated income tax return. The statute of limitations for tax returns filed in the U.S., Mexico and Canada is three years, five years and seven years, respectively, from the date of filing. The Company’s 2019-2023 U.S. tax returns are subject to examinations by U.S. tax authorities until 2023-2026, respectively. The Company is no longer subject to examinations by Mexico tax authorities for years prior to 2018. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company operates in a single industry as a corporation engaged in the acquisition, exploration and development of primarily silver mineral interests. The Company has mineral property interests in Mexico. The Company’s reportable segments are based on the Company’s mineral interests and management structure and include Mexico and Corporate segments. The Mexico segment engages in the exploration, development and operation of the Company’s Mexican mineral interests and includes the Company’s investment in the LGJV. Financial information relating to the Company’s segments is as follows: Year Ended December 31, 2023 Year Ended December 31, 2022 Mexico Corporate Total Mexico Corporate Total Exploration $ 26 $ — $ 26 $ 83 $ 27 $ 110 General and administrative 763 24,925 25,688 1,124 24,344 25,468 Amortization 15 64 79 5 175 180 Equity income in affiliates (33,622) — (33,622) (45,230) — (45,230) Legal settlement loss — 1,500 1,500 — 7,900 7,900 Interest expense — 679 679 — 433 433 Interest income — (1,332) (1,332) — (154) (154) Net other (income) expense (28) (5,964) (5,992) 22 (4,823) (4,801) Income tax expense — 114 114 1,565 — 1,565 Total assets 54,166 346,738 400,904 109,081 274,420 383,501 |
Investment in Affiliates
Investment in Affiliates | 12 Months Ended |
Dec. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Affiliates | Investment in Affiliates During the years ended December 31, 2023 and 2022, the Company recognized income of $33,622 and $45,230, respectively, on its investment in the LGJV Entities, representing its ownership share of the LGJV Entities’ results, including the effect of the Priority Distribution Payment ("PDP"). The equity income in affiliate includes amortization of the carrying value of the investment in excess of the underlying net assets of the LGJV Entities. This basis difference is being amortized as the LGJV Entities’ proven and probable reserves are processed. There were no impairment indicators in the years ended December 31, 2023 and 2022. On September 6, 2023, the Company reported an updated mineral reserve and mineral resource estimate and life of mine plan for the Cerro Los Gatos mine with an effective date of July 1, 2023. The mine life was extended by 2.75 years and significantly increased the mineral resource. This change in estimate has been applied prospectively, effective July 1, 2023, and resulted in a reduction of depletion, depreciation and amortization expense of $9,438 and reduction in the deferred tax expense of $3,691 for t he year ended December 31, 2023 as recorded by the LGJV Entities. In July and October 2023, the LGJV made two capital distributions of $50,000 and $35,000 to the LGJV Partners, of which the Company’s share was $35,000 and $24,500, respectively. The capital distributions were not subject to withholding taxes. In April, July and November 2022, the LGJV paid three dividends of $20,000, $15,000 and $20,000 to the LGJV Partners, respectively. The Company’s share of the first dividend was $14,000, before withholding taxes of $700. A payment of $7,365 was subsequently made to Dowa to cover the full amount of the reduced initial priority distribution due, for a net dividend received of $5,935. The Company's share of the second and third dividends was $9,975 and $13,300, before withholding taxes of $525 and $700, respectively. On March 17, 2022, the Company entered into a definitive agreement with Dowa to build and operate a leaching plant to reduce fluorine levels in zinc concentrates produced at CLG at an expected construction cost of $6,050. As part of the agreement, the initial payment of the $20,000 due to Dowa under the partner’s priority distribution agreement was reduced to $10,300. The reduced priority dividend amount reflects a portion of both the construction ($4,200) and future estimated operating costs of the fluorine leaching plant ($5,500). Should the fluorine leaching plant not operate according to certain parameters during the first five years, portions of the $5,500 reduction could be reinstated. The construction and commissioning of the fluorine leaching plant was completed in July 2023 and placed in operation. As a result, the outstanding priority distribution was reduced from $5,500 at December 31, 2022, to $5,119 at December 31, 2023. The LGJV combined balance sheets as of December 31, 2023 and 2022, the combined statements of income for the years ended December 31, 2023 and 2022, and the statements cash flows for the years ended December 31, 2023 and 2022 are as follows: LOS GATOS JOINT VENTURE COMBINED BALANCE SHEETS AS OF DECEMBER 31, 2023 2022 ASSETS Current Assets Cash and cash equivalents $ 34,303 $ 34,936 Receivables 12,634 26,655 Inventories 16,397 11,542 VAT receivable 12,610 21,531 Income tax receivable 20,185 27,039 Other current assets 1,253 4,138 Total current assets 97,382 125,841 Non-Current Assets Mine development, net 234,980 232,515 Property, plant and equipment, net 171,965 198,600 Deferred tax assets 9,568 — Total non-current assets 416,513 431,115 Total Assets $ 513,895 $ 556,956 LIABILITIES AND OWNERS’ CAPITAL Current Liabilities Accounts payable and accrued liabilities $ 38,704 $ 46,751 Related party payable 560 1,792 Equipment loans — 480 Total current liabilities 39,264 49,023 Non-Current Liabilities Lease liability 208 268 Asset retirement obligation 11,593 15,809 Deferred tax liabilities 3,885 1,354 Total non-current liabilities 15,686 17,431 Owners’ Capital Capital contributions 455,638 540,638 Paid-in capital 18,186 18,186 Accumulated deficit (14,879) (68,322) Total owners’ capital 458,945 490,502 Total Liabilities and Owners’ Capital $ 513,895 $ 556,956 LOS GATOS JOINT VENTURE COMBINED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31, 2023 2022 Revenue $ 268,671 $ 311,724 Expenses Cost of sales 111,266 107,075 Royalties 1,363 3,069 Exploration 2,875 9,800 General and administrative 18,068 14,307 Depreciation, depletion and amortization 75,110 69,380 Total expenses 208,682 203,631 Other expense (income) Interest expense 660 582 Interest income (1,567) — Accretion expense 1,145 1,103 Other expense (income) 741 (766) Foreign exchange gain (2,580) (2,348) (1,601) (1,429) Income before taxes 61,590 109,522 Income tax expense 8,147 37,306 Net income and comprehensive income $ 53,443 $ 72,216 LOS GATOS JOINT VENTURE COMBINED STATEMENTS OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2023 2022 Cash flows from operating activities: Net income $ 53,443 $ 72,216 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, depletion and amortization 75,110 69,380 Accretion 1,145 1,103 Deferred taxes (7,623) 21,013 Unrealized gain on foreign currency rate change (4,523) (4,434) Other — (174) Changes in operating assets and liabilities: VAT receivable 9,619 23,986 Receivables 14,021 (15,393) Inventories (5,273) (353) Unearned revenue — (1,714) Other current assets 2,494 661 Income tax receivable 10,771 (27,039) Accounts payable and other accrued liabilities (5,951) 17,939 Payables to related parties (1,232) 183 Net cash provided by operating activities 142,001 157,374 Cash flows from investing activities: Mine development (36,637) (44,934) Purchase of property, plant and equipment (19,850) (37,018) Materials and supplies inventory (600) (327) Net cash used by investing activities (57,087) (82,279) Cash flows from financing activities: Capital distributions (85,000) — Equipment loan and Lease payments (547) (5,439) Dividends — (55,000) Net cash used by financing activities (85,547) (60,439) Net increase (decrease) in cash and cash equivalents (633) 14,656 Cash and cash equivalents, beginning of period 34,936 20,280 Cash and cash equivalents, end of period $ 34,303 $ 34,936 Interest paid $ 660 $ 236 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On February 15, 2024, the LGJV made a $30 million capital distribution to the LGJV partners, of which the Company’s share was $21 million. Except as disclosed above and in 10. Commitments, Contingencies and Guarantees, there are no events or transactions requiring recognition in these consolidated financial statements through February 20, 2024. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Consolidation and Presentation |
Basis of Consolidation | All Company subsidiaries are consolidated. All significant intercompany balances and transactions have been eliminated. |
Equity method investment | Equity method investment The Company accounts for its investment in affiliates using the equity method of accounting whereby, after valuing the initial investment, the Company recognizes its proportional share of results of operations of the affiliate in its consolidated financial statements. The value of equity method investments are adjusted if it is determined that there is an other-than-temporary decline in value. The Company’s investment in the LGJV Entities is presented as Investment in affiliates in the consolidated balance sheet. The basis difference between the carrying amount of the investment in affiliates and the Company’s equity in the LGJV Entities’ net assets is due to value of the LGJV mineral resources. This basis difference is amortized on a units of production basis as the mineral resource is mined. Dividends received are recorded as an operating cash flow. Returns on capital distributions are recorded as an operating cash flow whereas returns of capital distributions are recorded as an investing cash flow. |
Use of estimates | Use of estimates The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates are valuation of stock and stock options; valuation allowances for deferred tax assets; and the fair value of financial instruments and investment in affiliates. At the LGJV, significant items subject to such estimates and assumptions include mineral properties, life of mine revenue and cost assumptions, mineral resource conversion rates to mineral reserves; environmental reclamation and closure obligations and valuation allowances for deferred tax assets. |
Functional currency and translation of foreign currencies | Functional currency and translation of foreign currencies The U.S. dollar is the functional currency of the Company and its subsidiaries. Monetary assets and liabilities denominated in foreign currencies are translated to U.S. dollars at exchange rates in effect at the balance sheet date, with the resulting gains or losses reported in foreign exchange (gain) loss in the statement of income. Non-monetary assets and liabilities are translated at historical exchange rates. Expenses and income items denominated in foreign currencies are translated into U.S. dollars at historical exchange rates. |
Cash and cash equivalents | Cash and cash equivalents |
Other than temporary impairment - investments | Other than temporary impairment - investment |
Stock-based compensation | Stock-based compensation The Company recognizes all employee stock-based compensation as a cost in the consolidated financial statements. Equity-classified awards are measured at the grant date fair value of the award. Stock-based compensation expense is included as a component of general and administrative expense over the requisite service period of the award. The fair value of stock options is estimated using the Black-Scholes option-pricing model. The initial fair value of performance share units (“PSUs”), which are subject to vesting based on the Company’s attainment of a pre-established market performance goals, is estimated using a Monte Carlo simulation valuation model. The fair value of Restricted Stock Units ("RSUs") is based on the Company's stock price on the date of grant and vest on the third anniversary of the grant date, unless otherwise specified. The fair value of Deferred Stock Units ("DSUs") is based on the Company's stock price on the date of the grant and DSUs vest on the grant date. The Company’s estimates may be impacted by certain variables including, but not limited to, stock price volatility, estimates of forfeitures, the risk-free interest rate, expected dividend yields, and the Company’s performance. The Company estimates forfeitures of stock-based awards based on historical data and periodically adjusts the forfeiture rate. |
Net income per share | Net income per share Basic and diluted earnings per share are presented for net income attributable to common shareholders. Basic net earnings per share is computed by dividing the net income available to common stockholders by the weighted-average number of common stock shares outstanding, for the respective period presented. Diluted net earnings per share is computed similarly, except that weighted-average common shares is increased to reflect the potential dilution that would occur if stock options were exercised, or DSUs, RSUs and PSUs were converted into common stock. The effects of the Company’s dilutive securities are excluded from the calculation of diluted weighted-average common shares outstanding if their effect would be anti-dilutive based on the treasury stock method or due to a net loss. |
Income taxes | Income taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. Current tax comprises the expected tax payable on the taxable income for the year and any adjustments to the tax payable or receivable in respect of previous years. The amount of current tax payable is the best estimate of the tax amount expected to be paid that reflects uncertainty related to income taxes, if any. It is measured using tax rates enacted at the reporting date. |
Recently issued and adopted accounting standards | Recently issued and adopted accounting standards In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”) followed by ASU No. 2021-01, Reference Rate Reform (Topic 848): Scope (“ASU 2021-01”), issued in January 2021, to provide clarifying guidance regarding the scope of Topic 848. ASU 2020-04 was issued to provide optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform. Generally, the guidance is to be applied as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. ASU 2020-04 and ASU 2021-01 are effective for all entities through December 31, 2023. The Company has not elected to use the optional guidance and continues to evaluate the options provided by ASU 2020-04 and ASU 2021-01. The Company concluded that this update does not have a material impact on its financial statements. In September 2022, the FASB issued ASU 2022-04, Liabilities — Supplier Finance Programs (Subtopic 405-50): Disclosures of Supplier Finance Program Obligations. The ASU requires entities that use supplier finance programs (that are in the scope of the ASU) in connection with the purchase of goods and services to disclose sufficient information about the program to allow a user of financial statements to understand the program’s nature, activity during the period, changes from period to period and potential magnitude. The amendments are effective for all entities for fiscal years beginning after 15 December 2022, including interim periods within those fiscal years, except for the amendment on roll forward information, which is effective for fiscal years beginning after December 15, 2023. Early adoption is permitted. In the period of initial adoption, the amendments should be applied retrospectively to all periods in which a balance sheet is presented, except for the roll forward requirement, which should be applied prospectively. The Company assessed the new guidance and concluded that this update does not have any impact on the financial statements. In October 2023, the FASB issued ASU No. 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative. The amendments in this update modify the disclosure or presentation requirements of a variety of Topics in the Codification. Certain amendments represent clarifications to or technical corrections of the current requirements. Each amendment in the ASU will only become effective if the SEC removes the related disclosure or presentation requirement from its existing regulations by June 30, 2027. The Company is still assessing the impact of the standard. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280). The amendments in this update improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments of this udpate are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is still assessing the impact of this standard. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740). The amendments in this update related to the rate reconciliation and income taxes paid disclosures improve the transparency, effectiveness and comparability of income tax disclosures. For public business entities, the amendments in this update are effective for annual periods beginning after December 15, 2024. The Company is still assessing the impact of this standard. As of December 31, 2023, there are no additional recently issued or adopted accounting standard that could have a material impact on our financial statements. |
Fair Value Measurements | The Company establishes a framework for measuring the fair value of assets and liabilities in the form of a fair value hierarchy that prioritizes the inputs into valuation techniques used to measure fair value into three broad levels. This hierarchy gives the highest priority to unadjusted quoted prices in active markets and the lowest priority to unobservable inputs. Further, financial assets and liabilities should be classified by level in their entirety based upon the lowest level of input that was significant to the fair value measurement. The three levels of the fair value hierarchy are as follows: Level 1: Unadjusted quoted market prices in active markets for identical assets or liabilities that are accessible at the measurement date. Level 2: Quoted prices in inactive markets for identical assets or liabilities, quoted prices for similar assets or liabilities in active markets, or other observable inputs either directly related to the asset or liability or derived principally from corroborated observable market data. Level 3: Unobservable inputs due to the fact there is little or no market activity. This entails using assumptions in models which estimate what market participants would use in pricing the asset or liability. The Company’s financial assets and liabilities such as cash and cash equivalents, related party receivables, value added tax receivable, insurance proceeds receivable, accounts payable and debt are approximate fair value due to their short maturities and are classified within Level 1 of the fair value hierarchy. Assets and Liabilities that are Measured at Fair Value on a Non-recurring Basis The Company discloses and recognizes its non-financial assets and liabilities at fair value on a non-recurring basis and makes adjustments to fair value, as needed (for example, when there is evidence of impairment). |
Other Current Assets (Tables)
Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Current Assets | December 31, 2023 December 31, 2022 Value added tax receivable $ 691 $ 730 Prepaid expenses 1,914 2,890 Insurance proceeds receivable 20,000 13,100 Other assets 37 151 Total other current assets $ 22,642 $ 16,871 |
Accounts Payable, Accrued and_2
Accounts Payable, Accrued and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | December 31, 2023 December 31, 2022 Accounts payable $ 2,713 $ 586 Accrued expenses 3,031 2,761 Accrued compensation 3,215 1,889 Legal settlement payable 24,000 21,000 Current tax payable 387 — Other liabilities 11 122 Total accounts payable, accrued and other liabilities $ 33,357 $ 26,358 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Share-Based Payment Arrangement, Activity | The Company recognized stock-based compensation expense as follows: Year ended December 31, 2023 2022 Stock options $ 4,087 $ 2,621 Performance share units 203 219 Restricted stock units 1,046 — Total stock-based compensation $ 5,336 $ 2,840 |
Share-Based Payment Arrangement, Option, Activity | The following table summarizes the respective vesting start dates and number of options granted to employees and directors in 2023 and 2022: Recipient Options Granted Vesting Start Date Grant Date Employees 100,000 January 18, 2022 January 18, 2022 Employees 1,044,705 September 11, 2023 September 11, 2023 Directors 87,815 September 11, 2023 September 11, 2023 Directors 134,225 November 9, 2023 November 9, 2023 The following tables summarize the stock option activity for the year ended December 31, 2023: Employee & Director Options Options Weighted‑ Average Exercise Price Aggregate Intrinsic Value Weighted‑ Average Remaining Life (Years) Outstanding at December 31, 2022 1,701,530 $ 12.67 Granted 1,266,745 $ 5.01 Forfeited (289,760) $ 13.99 Expired (62,000) $ 12.00 Outstanding at December 31, 2023 2,616,515 $ 8.83 $ 2,090 9.86 Vested at December 31, 2023 1,848,486 $ 9.69 $ 2,053 9.07 |
Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions | The following assumptions were used to compute the fair value of the options granted using the Black-Scholes option valuation model: Jan. 2022 Sep. 2023 Nov. 2023 Risk-free interest rate 1.74 % 4.39 % 4.52 % Dividend yield — — — Estimated volatility 60.75 % 57.67 % 57.85 % Expected option life 6 years 6 years 6 years |
Share-Based Payment Arrangement, Outstanding Award, Activity, Excluding Option | The Company granted 174,948 DSUs during the year ended December 31, 2023 and nil during the year ended December 31, 2022. The 2023 grant included DSU compensation related to 2022 that could not be issued due to the Company being in an extended blackout period in 2022 and a portion of 2023. Director DSUs Shares Weighted‑ Average Grant Price Outstanding at December 31, 2022 146,796 $ 10.88 Granted 174,948 $ 4.97 Converted to common stock (18,824) $ 6.13 Outstanding at December 31, 2023 302,920 $ 7.76 |
Net Income per Share (Tables)
Net Income per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | A reconciliation of basic and diluted earnings per common share is presented below: Year Ended December 31, 2023 2022 Net income $ 12,860 $ 14,529 Weighted average shares: Basic 69,163,564 69,162,223 Effect of dilutive stock options 1,493 — Effect of dilutive PSUs 8,364 — Effect of dilutive RSUs 174,849 — Effect of dilutive DSUs 188,028 146,796 Diluted 69,536,298 69,309,019 Net income per share: Basic $ 0.19 $ 0.21 Diluted $ 0.18 $ 0.21 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | The components of income from operations before income taxes were as follows for the years ended December 31: 2023 2022 U.S. $ 13,606 $ 19,111 Foreign (632) (3,017) Total $ 12,974 $ 16,094 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the actual income tax benefit and the tax computed by applying the applicable U.S. federal rate of 21% to the income before taxes is as follows for the years ended December 31: 2023 2022 Tax provision from operations $ 2,725 $ 3,380 State tax benefit from operations 8 20 Nondeductible expenses 1,298 (594) Change in valuation allowance (3,908) (3,410) Mexican withholding tax — 1,565 Effect of change in tax rates — 927 US/foreign tax rate differential (9) (323) Total income tax expense $ 114 $ 1,565 |
Schedule of Deferred Tax Assets and Liabilities | The components of the deferred tax assets (liabilities) are summarized as follows for the year ended December 31: 2023 2022 Deferred tax assets Accrued compensation $ 18 $ 354 Contingent liabilities 5,046 1,661 Deferred share unit awards 835 461 LGJV equity investment — 12,656 Other accrued liabilities 21 21 Mineral properties 2,009 2,009 U.S. operating loss carryforward 19,079 10,234 Stock options 9,596 8,917 Foreign operating loss carryforward 4,804 4,129 Exploration and development — 41 Other 260 24 Valuation allowances (38,672) (39,738) Total deferred tax assets $ 2,996 $ 769 Deferred tax liabilities Accrued bonus (280) — LGJV equity investment (1,485) — Property, plant and equipment (178) (218) Exploration and development (18) — Prepaid expenses (769) (551) Total deferred tax liabilities $ (2,730) $ (769) Deferred tax assets (liabilities) $ 266 $ — |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Financial information relating to the Company’s segments is as follows: Year Ended December 31, 2023 Year Ended December 31, 2022 Mexico Corporate Total Mexico Corporate Total Exploration $ 26 $ — $ 26 $ 83 $ 27 $ 110 General and administrative 763 24,925 25,688 1,124 24,344 25,468 Amortization 15 64 79 5 175 180 Equity income in affiliates (33,622) — (33,622) (45,230) — (45,230) Legal settlement loss — 1,500 1,500 — 7,900 7,900 Interest expense — 679 679 — 433 433 Interest income — (1,332) (1,332) — (154) (154) Net other (income) expense (28) (5,964) (5,992) 22 (4,823) (4,801) Income tax expense — 114 114 1,565 — 1,565 Total assets 54,166 346,738 400,904 109,081 274,420 383,501 |
Investment in Affiliates (Table
Investment in Affiliates (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Condensed Balance Sheet | The LGJV combined balance sheets as of December 31, 2023 and 2022, the combined statements of income for the years ended December 31, 2023 and 2022, and the statements cash flows for the years ended December 31, 2023 and 2022 are as follows: LOS GATOS JOINT VENTURE COMBINED BALANCE SHEETS AS OF DECEMBER 31, 2023 2022 ASSETS Current Assets Cash and cash equivalents $ 34,303 $ 34,936 Receivables 12,634 26,655 Inventories 16,397 11,542 VAT receivable 12,610 21,531 Income tax receivable 20,185 27,039 Other current assets 1,253 4,138 Total current assets 97,382 125,841 Non-Current Assets Mine development, net 234,980 232,515 Property, plant and equipment, net 171,965 198,600 Deferred tax assets 9,568 — Total non-current assets 416,513 431,115 Total Assets $ 513,895 $ 556,956 LIABILITIES AND OWNERS’ CAPITAL Current Liabilities Accounts payable and accrued liabilities $ 38,704 $ 46,751 Related party payable 560 1,792 Equipment loans — 480 Total current liabilities 39,264 49,023 Non-Current Liabilities Lease liability 208 268 Asset retirement obligation 11,593 15,809 Deferred tax liabilities 3,885 1,354 Total non-current liabilities 15,686 17,431 Owners’ Capital Capital contributions 455,638 540,638 Paid-in capital 18,186 18,186 Accumulated deficit (14,879) (68,322) Total owners’ capital 458,945 490,502 Total Liabilities and Owners’ Capital $ 513,895 $ 556,956 |
Condensed Income Statement | LOS GATOS JOINT VENTURE COMBINED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31, 2023 2022 Revenue $ 268,671 $ 311,724 Expenses Cost of sales 111,266 107,075 Royalties 1,363 3,069 Exploration 2,875 9,800 General and administrative 18,068 14,307 Depreciation, depletion and amortization 75,110 69,380 Total expenses 208,682 203,631 Other expense (income) Interest expense 660 582 Interest income (1,567) — Accretion expense 1,145 1,103 Other expense (income) 741 (766) Foreign exchange gain (2,580) (2,348) (1,601) (1,429) Income before taxes 61,590 109,522 Income tax expense 8,147 37,306 Net income and comprehensive income $ 53,443 $ 72,216 |
Condensed Cash Flow Statement | LOS GATOS JOINT VENTURE COMBINED STATEMENTS OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2023 2022 Cash flows from operating activities: Net income $ 53,443 $ 72,216 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, depletion and amortization 75,110 69,380 Accretion 1,145 1,103 Deferred taxes (7,623) 21,013 Unrealized gain on foreign currency rate change (4,523) (4,434) Other — (174) Changes in operating assets and liabilities: VAT receivable 9,619 23,986 Receivables 14,021 (15,393) Inventories (5,273) (353) Unearned revenue — (1,714) Other current assets 2,494 661 Income tax receivable 10,771 (27,039) Accounts payable and other accrued liabilities (5,951) 17,939 Payables to related parties (1,232) 183 Net cash provided by operating activities 142,001 157,374 Cash flows from investing activities: Mine development (36,637) (44,934) Purchase of property, plant and equipment (19,850) (37,018) Materials and supplies inventory (600) (327) Net cash used by investing activities (57,087) (82,279) Cash flows from financing activities: Capital distributions (85,000) — Equipment loan and Lease payments (547) (5,439) Dividends — (55,000) Net cash used by financing activities (85,547) (60,439) Net increase (decrease) in cash and cash equivalents (633) 14,656 Cash and cash equivalents, beginning of period 34,936 20,280 Cash and cash equivalents, end of period $ 34,303 $ 34,936 Interest paid $ 660 $ 236 |
Description of Business (Detail
Description of Business (Details) $ in Thousands | 1 Months Ended | ||||
Mar. 11, 2021 USD ($) | Sep. 01, 2019 product | May 31, 2019 | Dec. 31, 2023 subsidiary | Apr. 01, 2016 USD ($) | |
Schedule of Equity Method Investments [Line Items] | |||||
Number of wholly-owned subsidiaries | subsidiary | 2 | ||||
Los Gatos Joint Venture | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investment, ownership percentage | 70% | 70% | |||
Equity method investment, ownership percentage, repurchased | 18.50% | ||||
Payments to acquire equity method investments | $ 71,550 | ||||
Equity method investment, difference between carrying amount and underlying equity | $ 47,400 | ||||
Los Gatos Joint Venture | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Number of concentrate products | product | 2 | ||||
Dowa Metals And Mining Co. Ltd | Los Gatos Joint Venture | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investment, ownership percentage | 48.50% | 30% | 30% | ||
Equity method investment, aggregate cost | $ 50,000 | ||||
Increase in ownership interest through the conversion of loan to equity | 18.50% |
Other Current Assets - Schedule
Other Current Assets - Schedule of Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Value added tax receivable | $ 691 | $ 730 |
Prepaid expenses | 1,914 | 2,890 |
Insurance proceeds receivable | 20,000 | 13,100 |
Other assets | 37 | 151 |
Total other current assets | $ 22,642 | $ 16,871 |
Property, Plant and Equipment_2
Property, Plant and Equipment, net (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Royalty payment, percentage | 1% |
Accounts Payable, Accrued and_3
Accounts Payable, Accrued and Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Accounts payable | $ 2,713 | $ 586 |
Accrued expenses | 3,031 | 2,761 |
Accrued compensation | 3,215 | 1,889 |
Legal settlement payable | 24,000 | 21,000 |
Current tax payable | 387 | 0 |
Other liabilities | 11 | 122 |
Total accounts payable, accrued and other liabilities | $ 33,357 | $ 26,358 |
Related-Party Transactions (Det
Related-Party Transactions (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | ||
Related party receivables | $ 560,000 | $ 1,773,000 |
Related Party | ||
Related Party Transaction [Line Items] | ||
Proceeds from fees received | 3,489,000 | 1,431,000 |
Related party receivables | 250,000 | 1,112,000 |
Related party transaction, amounts of transaction | 2,627,000 | 2,399,000 |
Related Party | Unanimous Omnibus Partner Agreement | ||
Related Party Transaction [Line Items] | ||
Revenue | 6,000,000 | 5,000,000 |
Proceeds from fees received | 6,417,000 | 5,417,000 |
Related party receivables | $ 0 | $ 417,000 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Nov. 09, 2023 | Sep. 11, 2023 | Dec. 17, 2021 | Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Common stock, shares authorized (in shares) | 700,000,000 | 700,000,000 | 700,000,000 | |||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | |||
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 | ||||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | ||||
Preferred stock, shares outstanding (in shares) | 0 | 0 | ||||
Share-based compensation arrangement by share-based payment award, number of shares available for grant (in shares) | 10,300,000 | 10,300,000 | ||||
Vested (in shares) | 604,799 | |||||
Exercises in period (in shares) | 0 | 0 | ||||
Stock options | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Share-based payment arrangement, expiration period | 10 years | |||||
Share-based payment arrangement, service period | 3 years | |||||
Granted (in shares) | 134,225 | 1,132,520 | 100,000 | |||
Share-based compensation arrangement by share-based payment award, options, grants in period, weighted average grant date fair value (in dollars per share) | $ 2.77 | $ 2.93 | $ 5.83 | |||
Share-based payment arrangement, nonvested award, cost not yet recognized, amount | $ 2,087 | $ 2,087 | ||||
Share-based payment arrangement, nonvested award, cost not yet recognized, period for recognition | 1 year 2 months 12 days | |||||
Share-based compensation arrangement by share-based payment award, options, vested in period, fair value | $ 6,344 | |||||
Stock options | Los Gatos Joint Venture | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Granted (in shares) | 0 | |||||
Exercises in period (in shares) | 0 | |||||
Share-based compensation arrangement by share-based payment award, options, outstanding, number (in shares) | 32,393 | 32,393 | ||||
Share-based compensation arrangement by share-based payment award, options, outstanding, weighted average exercise price (in dollars per share) | $ 7.31 | $ 7.31 | ||||
Weighted-average remaining life, outstanding | 2 years | |||||
Performance share units | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Share-based payment arrangement, nonvested award, cost not yet recognized, period for recognition | 1 year | |||||
Share-based payment award, equity instruments other than options, grants in period (in shares) | 119,790 | 0 | ||||
Share-based payment award, equity instruments other than options, grants in period, weighted average grant date fair value (in dollars per share) | $ 14.22 | |||||
Share-based compensation arrangement by share-based payment award, non-option equity instruments, outstanding, number (in shares) | 40,802 | 40,802 | ||||
Share-based payment arrangement, nonvested award, excluding option, cost not yet recognized, amount | $ 166 | $ 166 | ||||
Restricted stock units | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Share-based payment arrangement, nonvested award, cost not yet recognized, period for recognition | 1 year 3 months 18 days | |||||
Share-based payment award, equity instruments other than options, grants in period (in shares) | 925,172 | |||||
Share-based payment award, equity instruments other than options, grants in period, weighted average grant date fair value (in dollars per share) | $ 5.04 | |||||
Share-based payment arrangement, nonvested award, excluding option, cost not yet recognized, amount | $ 3,617 | $ 3,617 | ||||
Deferred Stock Units | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Share-based payment award, equity instruments other than options, grants in period (in shares) | 174,948 | 0 | ||||
Share-based payment award, equity instruments other than options, grants in period, weighted average grant date fair value (in dollars per share) | $ 4.97 | |||||
Share-based compensation arrangement by share-based payment award, number of shares underlying each award (in shares) | 1 | |||||
Share-based payment arrangement, expense | $ 626 | $ 239 | ||||
Deferred Stock Units converted to common stock (in shares) | 18,824 | |||||
Share-based payment award, equity instruments other than options, nonvested, number (in shares) | 302,920 | 302,920 | 146,796 | |||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, nonvested, weighted average grant date fair value (in dollars per share) | $ 7.76 | $ 7.76 | $ 10.88 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 5,336 | $ 2,840 |
Stock options | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Stock-based compensation expense | 4,087 | 2,621 |
Performance share units | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Stock-based compensation expense | 203 | 219 |
Restricted stock units | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 1,046 | $ 0 |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of Vesting Start Dates and Number Of Stock Options Granted (Details) - Stock options - shares | 12 Months Ended | |||
Nov. 09, 2023 | Sep. 11, 2023 | Jan. 18, 2022 | Dec. 31, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Options granted (in shares) | 134,225 | 1,132,520 | 100,000 | |
Employees | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Options granted (in shares) | 1,044,705 | 100,000 | ||
Directors | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Options granted (in shares) | 134,225 | 87,815 |
Stockholders' Equity - Schedu_3
Stockholders' Equity - Schedule of Valuation Assumptions (Details) - USD ($) | 1 Months Ended | ||
Nov. 30, 2023 | Sep. 30, 2023 | Jan. 31, 2022 | |
Equity [Abstract] | |||
Risk-free interest rate | 4.52% | 4.39% | 1.74% |
Dividend yield | $ 0 | $ 0 | $ 0 |
Estimated volatility | 57.85% | 57.67% | 60.75% |
Expected option life | 6 years | 6 years | 6 years |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Stock Option Activity (Details) - Stock options - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Nov. 09, 2023 | Sep. 11, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Options | ||||
Granted (in shares) | 134,225 | 1,132,520 | 100,000 | |
Employee & Director Options | ||||
Options | ||||
Outstanding, beginning balance (in shares) | 1,701,530 | |||
Granted (in shares) | 1,266,745 | |||
Forfeited (in shares) | (289,760) | |||
Expired (in shares) | (62,000) | |||
Outstanding, ending balance (in shares) | 2,616,515 | 1,701,530 | ||
Outstanding and vested (in shares) | 1,848,486 | |||
Weighted‑ Average Exercise Price | ||||
Weighted-average exercise price, outstanding, beginning balance (in dollars per share) | $ 12.67 | |||
Granted (in dollars per share) | 5.01 | |||
Forfeited (in dollars per share) | 13.99 | |||
Expired (in dollars per share) | 12 | |||
Weighted-average exercise price, outstanding, ending balance (in dollars per share) | 8.83 | $ 12.67 | ||
Outstanding and vested (in dollars per share) | $ 9.69 | |||
Aggregate intrinsic value, outstanding | $ 2,090 | |||
Aggregate intrinsic value, vested | $ 2,053 | |||
Weighted-average remaining life, outstanding | 9 years 10 months 9 days | |||
Weighted-average remaining life, vested | 9 years 25 days |
Stockholders' Equity - Schedu_4
Stockholders' Equity - Schedule of Deferred Stock Unit Activity (Details) - Deferred Stock Units - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Shares | ||
Beginning balance, outstanding (in shares) | 146,796 | |
Granted (in shares) | 174,948 | 0 |
Converted to common stock (in shares) | (18,824) | |
Ending balance, outstanding (in shares) | 302,920 | 146,796 |
Weighted‑ Average Grant Price | ||
Beginning balance, weighted-average exercise price (in dollars per share) | $ 10.88 | |
Granted (in dollars per share) | 4.97 | |
Converted to common stock (in dollars per share) | 6.13 | |
Ending balance, weighted-average exercise price (in dollars per share) | $ 7.76 | $ 10.88 |
Net Income per Share (Details)
Net Income per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Net income | $ 12,860 | $ 14,529 |
Weighted average shares outstanding: | ||
Basic (in shares) | 69,163,564 | 69,162,223 |
Diluted (in shares) | 69,536,298 | 69,309,019 |
Net income per share: | ||
Basic (in dollars per share) | $ 0.19 | $ 0.21 |
Diluted (in dollars per share) | $ 0.18 | $ 0.21 |
Stock options | ||
Weighted average shares outstanding: | ||
Effect of dilutive units (in shares) | 1,493 | 0 |
Performance share units | ||
Weighted average shares outstanding: | ||
Effect of dilutive units (in shares) | 8,364 | 0 |
Restricted stock units | ||
Weighted average shares outstanding: | ||
Effect of dilutive units (in shares) | 174,849 | 0 |
Deferred Stock Units | ||
Weighted average shares outstanding: | ||
Effect of dilutive units (in shares) | 188,028 | 146,796 |
Commitments, Contingencies an_2
Commitments, Contingencies and Guarantees (Details) - U.S. Class Action - USD ($) $ in Thousands | Jan. 26, 2024 | Jan. 05, 2024 | Jun. 13, 2023 |
Loss Contingencies [Line Items] | |||
Loss contingency, damages sought, value | $ 21,000 | ||
Subsequent Event | |||
Loss Contingencies [Line Items] | |||
Legal fees | $ 10,000 | ||
Loss contingency, expense recognized by insurers | 7,470 | ||
Loss contingency, estimate of possible loss | $ 1,470 | $ 2,530 | |
Litigation settlement, expense | $ 3,000 |
Debt (Details)
Debt (Details) - Revolving Credit Facility - USD ($) | 12 Months Ended | ||||
Dec. 13, 2023 | Jul. 21, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Jul. 12, 2021 | |
Line of Credit Facility [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 50,000,000 | $ 50,000,000 | |||
Line of credit facility, maximum borrowing capacity, accordion feature | $ 100,000,000 | ||||
Repayments of debt | $ 9,000,000 | ||||
Long-term debt, gross | $ 0 | ||||
Interest expense, debt | 679,000 | $ 433,000 | |||
Amortization of debt issuance costs | 57,000 | 147,000 | |||
Payments for interest, line of credit | $ 413,000 | $ 645,000 | |||
Secured Overnight Financing Rate (SOFR) | Minimum | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument, basis spread on variable rate | 2.75% | ||||
Secured Overnight Financing Rate (SOFR) | Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument, basis spread on variable rate | 3.75% | ||||
Base Rate | Minimum | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument, basis spread on variable rate | 1.75% | ||||
Base Rate | Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument, basis spread on variable rate | 2.75% |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income From Operations Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
U.S. | $ 13,606 | $ 19,111 |
Foreign | (632) | (3,017) |
Income before taxes | $ 12,974 | $ 16,094 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Tax Examination [Line Items] | ||
Income tax expense | $ 114 | $ 1,565 |
Valuation allowances | 38,672 | $ 39,738 |
Operating loss carryforwards, subject to expiration | 72,408 | |
Operating loss carryforward, not subject to expiration | 18,343 | |
Foreign | ||
Income Tax Examination [Line Items] | ||
Operating loss carryforwards | 17,126 | |
U.S. | ||
Income Tax Examination [Line Items] | ||
Operating loss carryforwards | $ 90,751 |
Income Taxes - Effective Tax Ra
Income Taxes - Effective Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Tax provision from operations | $ 2,725 | $ 3,380 |
State tax benefit from operations | 8 | 20 |
Nondeductible expenses | 1,298 | (594) |
Change in valuation allowance | (3,908) | (3,410) |
Mexican withholding tax | 0 | 1,565 |
Effect of change in tax rates | 0 | 927 |
US/foreign tax rate differential | (9) | (323) |
Income tax expense | $ 114 | $ 1,565 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets | ||
Accrued compensation | $ 18 | $ 354 |
Contingent liabilities | 5,046 | 1,661 |
Deferred share unit awards | 835 | 461 |
LGJV equity investment | 0 | 12,656 |
Other accrued liabilities | 21 | 21 |
Mineral properties | 2,009 | 2,009 |
U.S. operating loss carryforward | 19,079 | 10,234 |
Stock options | 9,596 | 8,917 |
Foreign operating loss carryforward | 4,804 | 4,129 |
Exploration and development | 0 | 41 |
Other | 260 | 24 |
Valuation allowances | (38,672) | (39,738) |
Total deferred tax assets | 2,996 | 769 |
Deferred tax liabilities | ||
Accrued bonus | (280) | 0 |
LGJV equity investment | (1,485) | 0 |
Property, plant and equipment | (178) | (218) |
Exploration and development | (18) | 0 |
Prepaid expenses | (769) | (551) |
Total deferred tax liabilities | (2,730) | (769) |
Deferred tax assets (liabilities) | $ 266 | $ 0 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Exploration | $ 26 | $ 110 |
General and administrative | 25,688 | 25,468 |
Amortization | 79 | 180 |
Equity income in affiliates | (33,622) | (45,230) |
Legal settlement loss | 1,500 | 7,900 |
Interest expense | 679 | 433 |
Interest income | (1,332) | (154) |
Net other (income) expense | (5,992) | (4,801) |
Income tax expense | 114 | 1,565 |
Total assets | 400,904 | 383,501 |
Mexico | ||
Segment Reporting Information [Line Items] | ||
Exploration | 26 | 83 |
General and administrative | 763 | 1,124 |
Amortization | 15 | 5 |
Equity income in affiliates | (33,622) | (45,230) |
Legal settlement loss | 0 | 0 |
Interest expense | 0 | 0 |
Interest income | 0 | 0 |
Net other (income) expense | (28) | 22 |
Income tax expense | 0 | 1,565 |
Total assets | 54,166 | 109,081 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Exploration | 0 | 27 |
General and administrative | 24,925 | 24,344 |
Amortization | 64 | 175 |
Equity income in affiliates | 0 | 0 |
Legal settlement loss | 1,500 | 7,900 |
Interest expense | 679 | 433 |
Interest income | (1,332) | (154) |
Net other (income) expense | (5,964) | (4,823) |
Income tax expense | 114 | 0 |
Total assets | $ 346,738 | $ 274,420 |
Investment in Affiliates - Addi
Investment in Affiliates - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||
Sep. 06, 2023 | Mar. 17, 2022 | Oct. 31, 2023 | Jul. 31, 2023 | Nov. 30, 2022 | Jul. 31, 2022 | Apr. 30, 2022 | Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Mar. 18, 2022 | |
Schedule of Equity Method Investments [Line Items] | |||||||||||
Equity income in affiliates | $ 33,622 | $ 45,230 | |||||||||
Dividends from affiliates | 0 | 30,775 | |||||||||
Construction payable, decrease in estimated distribution agreement, construction costs | $ 4,200 | ||||||||||
Construction payable, decrease in estimated distribution agreement, operating costs | 5,500 | ||||||||||
Dowa Metals And Mining Co. Ltd | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Expected construction costs with affiliates | 6,050 | ||||||||||
Construction payable, current | $ 20,000 | $ 5,119 | 5,119 | 5,500 | $ 10,300 | ||||||
Contingent construction, contract duration | 5 years | ||||||||||
Construction payable, contingent portion of contract | $ 5,500 | ||||||||||
Los Gatos Joint Venture | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Equity income in affiliates | $ 33,622 | $ 45,230 | |||||||||
Mineral reserve, life | 2 years 9 months | ||||||||||
Accumulated depreciation, depletion and amortization, property, plant and equipment, period increase (decrease) | (9,438) | ||||||||||
Valuation allowance, deferred tax asset, increase (decrease), amount | $ (3,691) | ||||||||||
Los Gatos Joint Venture | Los Gatos Joint Venture | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Capital distribution | $ 35,000 | $ 50,000 | |||||||||
Payments of ordinary dividends | $ 24,500 | $ 35,000 | |||||||||
Payments of distributions to affiliates | $ 20,000 | $ 15,000 | $ 20,000 | ||||||||
Dividends from affiliates | 13,300 | 9,975 | 14,000 | ||||||||
Payments of dividend, tax withheld | $ 700 | $ 525 | 700 | ||||||||
Los Gatos Joint Venture | Dowa Metals And Mining Co. Ltd | Los Gatos Joint Venture | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Payments of distributions to affiliates, net | 7,365 | ||||||||||
Payments of distributions to affiliates, net received | $ 5,935 |
Investment in Affiliates - Sche
Investment in Affiliates - Schedule of Combined Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current Assets | ||
Cash and cash equivalents | $ 55,484 | $ 17,004 |
Value added tax receivable | 691 | 730 |
Other current assets | 22,642 | 16,871 |
Total current assets | 78,686 | 35,648 |
Non-Current Assets | ||
Total Assets | 400,904 | 383,501 |
Current Liabilities | ||
Related party payable | 11 | 122 |
Owners’ Capital | ||
Paid-in capital | 553,319 | 547,114 |
Accumulated deficit | (185,889) | (198,749) |
Total Liabilities and Stockholders’ Equity | 400,904 | 383,501 |
Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||
Current Assets | ||
Cash and cash equivalents | 34,303 | 34,936 |
Receivables | 12,634 | 26,655 |
Inventories | 16,397 | 11,542 |
Value added tax receivable | 12,610 | 21,531 |
Income tax receivable | 20,185 | 27,039 |
Other current assets | 1,253 | 4,138 |
Total current assets | 97,382 | 125,841 |
Non-Current Assets | ||
Mine development, net | 234,980 | 232,515 |
Property, plant and equipment, net | 171,965 | 198,600 |
Deferred tax assets | 9,568 | 0 |
Total non-current assets | 416,513 | 431,115 |
Total Assets | 513,895 | 556,956 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 38,704 | 46,751 |
Related party payable | 560 | 1,792 |
Equipment loans | 0 | 480 |
Total current liabilities | 39,264 | 49,023 |
Non-Current Liabilities | ||
Lease liability | 208 | 268 |
Asset retirement obligation | 11,593 | 15,809 |
Deferred tax liabilities | 3,885 | 1,354 |
Total non-current liabilities | 15,686 | 17,431 |
Owners’ Capital | ||
Capital contributions | 455,638 | 540,638 |
Paid-in capital | 18,186 | 18,186 |
Accumulated deficit | (14,879) | (68,322) |
Total owners’ capital | 458,945 | 490,502 |
Total Liabilities and Stockholders’ Equity | $ 513,895 | $ 556,956 |
Investment in Affiliates - Sc_2
Investment in Affiliates - Schedule of Combined Statements of Operations and Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Expenses | ||
Exploration | $ 26 | $ 110 |
General and administrative | 25,688 | 25,468 |
Other expense (income) | ||
Interest expense | 679 | 433 |
Interest income | (1,332) | (154) |
Total other income, net | (38,767) | (41,852) |
Income before taxes | 12,974 | 16,094 |
Income tax expense | 114 | 1,565 |
Comprehensive income | 12,860 | 14,529 |
Net income | 12,860 | 14,529 |
Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||
Schedule of Equity Method Investments [Line Items] | ||
Revenue | 268,671 | 311,724 |
Expenses | ||
Cost of sales | 111,266 | 107,075 |
Royalties | 1,363 | 3,069 |
Exploration | 2,875 | 9,800 |
General and administrative | 18,068 | 14,307 |
Depreciation, depletion and amortization | 75,110 | 69,380 |
Total expenses | 208,682 | 203,631 |
Other expense (income) | ||
Interest expense | 660 | 582 |
Interest income | (1,567) | 0 |
Accretion expense | 1,145 | 1,103 |
Other expense (income) | 741 | (766) |
Foreign exchange gain | (2,580) | (2,348) |
Total other income, net | (1,601) | (1,429) |
Income before taxes | 61,590 | 109,522 |
Income tax expense | 8,147 | 37,306 |
Comprehensive income | 53,443 | 72,216 |
Net income | $ 53,443 | $ 72,216 |
Investment in Affiliates - Sc_3
Investment in Affiliates - Schedule of Combined Cash Flow Statements (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 12,860 | $ 14,529 |
Adjustments to reconcile net loss to net cash used by operating activities: | ||
Deferred tax recovery | (266) | 0 |
Other | 1,159 | 199 |
Changes in operating assets and liabilities: | ||
Other current assets | (5,771) | (13,191) |
Accounts payable and other accrued liabilities | 6,992 | 24,632 |
Net cash (used) provided by operating activities | (12,020) | 14,554 |
Cash flows from investing activities: | ||
Purchase of property, plant and equipment | 0 | (60) |
Net cash provided (used) by investing activities | 59,500 | (60) |
Cash flows from financing activities: | ||
Net cash used by financing activities | (9,000) | (4,106) |
Net increase in cash and cash equivalents | 38,480 | 10,388 |
Cash and cash equivalents, beginning of period | 17,004 | 6,616 |
Cash and cash equivalents, end of period | 55,484 | 17,004 |
Interest paid | 417 | 645 |
Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||
Cash flows from operating activities: | ||
Net income | 53,443 | 72,216 |
Adjustments to reconcile net loss to net cash used by operating activities: | ||
Depreciation, depletion and amortization | 75,110 | 69,380 |
Accretion | 1,145 | 1,103 |
Deferred tax recovery | (7,623) | 21,013 |
Unrealized gain on foreign currency rate change | (4,523) | (4,434) |
Other | 0 | (174) |
Changes in operating assets and liabilities: | ||
VAT receivable | 9,619 | 23,986 |
Receivables | 14,021 | (15,393) |
Inventories | (5,273) | (353) |
Unearned revenue | 0 | (1,714) |
Other current assets | 2,494 | 661 |
Income tax receivable | 10,771 | (27,039) |
Accounts payable and other accrued liabilities | (5,951) | 17,939 |
Payables to related parties | (1,232) | 183 |
Net cash (used) provided by operating activities | 142,001 | 157,374 |
Cash flows from investing activities: | ||
Mine development | (36,637) | (44,934) |
Purchase of property, plant and equipment | (19,850) | (37,018) |
Materials and supplies inventory | (600) | (327) |
Net cash provided (used) by investing activities | (57,087) | (82,279) |
Cash flows from financing activities: | ||
Capital distributions | (85,000) | 0 |
Equipment loan and Lease payments | (547) | (5,439) |
Dividends | 0 | (55,000) |
Net cash used by financing activities | (85,547) | (60,439) |
Net increase in cash and cash equivalents | (633) | 14,656 |
Cash and cash equivalents, beginning of period | 34,936 | 20,280 |
Cash and cash equivalents, end of period | 34,303 | 34,936 |
Interest paid | $ 660 | $ 236 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event - Los Gatos Joint Venture $ in Millions | Feb. 15, 2024 USD ($) |
Subsequent Event [Line Items] | |
Capital distribution | $ 30 |
Payments of ordinary dividends | $ 21 |