Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2019shares | |
Document And Entity Information [Abstract] | |
Entity Registrant Name | Sierra Metals Inc. |
Entity Central Index Key | 0001705259 |
Document Type | 40-F |
Document Period End Date | Dec. 31, 2019 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2019 |
Entity Current Reporting Status | Yes |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Entity Common Stock, Shares Outstanding | 162,115,379 |
Entity Interactive Data Current | Yes |
Entity Incorporation State Code | NY |
Entity File Number | 001-38141 |
Document Annual Report | true |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 42,980 | $ 21,832 |
Trade and other receivables | 31,892 | 26,007 |
Income tax receivable | 1,471 | 142 |
Prepaid expenses | 1,904 | 1,531 |
Inventories | 26,053 | 21,986 |
Total current assets | 104,300 | 71,498 |
Non-current assets: | ||
Property, plant and equipment | 305,115 | 283,513 |
Deferred income tax | 2,032 | 1,430 |
Total assets | 411,447 | 356,441 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 44,910 | 36,091 |
Income tax payable | 1,355 | 5,032 |
Loans payable | 27,718 | |
Decommissioning liability | 865 | 2,038 |
Other liabilities | 7,248 | 8,908 |
Total current liabilities | 54,378 | 79,787 |
Non-current liabilities: | ||
Loans payable and notes payable | 99,814 | 28,535 |
Deferred income tax | 27,653 | 32,167 |
Decommissioning liability | 16,029 | 11,266 |
Other liabilities | 1,554 | 1,081 |
Total liabilities | 199,428 | 152,836 |
EQUITY | ||
Share capital | 230,456 | 231,792 |
Accumulated deficit | (65,239) | (69,307) |
Other reserves | 11,566 | 10,870 |
Equity attributable to owners of the Company | 176,783 | 173,355 |
Non-controlling interest | 35,236 | 30,250 |
Total equity | 212,019 | 203,605 |
Total liabilities and equity | $ 411,447 | $ 356,441 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | |||
Profit or loss [abstract] | ||||
Revenue | $ 229,038 | [1] | $ 232,371 | [2] |
Cost of sales | ||||
Mining costs | (135,192) | (115,180) | ||
Depletion, depreciation and amortization | (36,084) | (31,409) | ||
Cost of sales | (171,276) | (146,589) | ||
Gross profit from mining operations | 57,762 | 85,782 | ||
General and administrative expenses | (19,515) | (18,919) | ||
Selling expenses | (9,741) | (8,551) | ||
Income from operations | 28,506 | 58,312 | ||
Other income (expense) | (507) | (1,288) | ||
Foreign currency exchange loss | (976) | (1,210) | ||
Interest expense and other finance costs | (5,078) | (3,634) | ||
Income before income tax | 21,945 | 52,180 | ||
Income taxes (expense) recovery: | ||||
Current tax expense | (17,416) | (25,432) | ||
Deferred tax recovery (expense) | 4,888 | (908) | ||
Income tax expense | (12,528) | (26,340) | ||
Net income | 9,417 | 25,840 | ||
Net income attributable to: | ||||
Shareholders of the Company | 4,431 | 18,814 | ||
Non-controlling interests | 4,986 | 7,026 | ||
Total income (loss) | $ 9,417 | $ 25,840 | ||
Weighted average shares outstanding (000s) | ||||
Basic | 163,075 | 163,296 | ||
Diluted | 164,705 | 164,676 | ||
Basic earnings per share | $ 0.03 | $ 0.12 | ||
Diluted earnings per share | $ 0.03 | $ 0.12 | ||
[1] | Includes provisional pricing adjustments of: $216 for Bolivar | |||
[2] | Includes provisional pricing adjustments of: $1,289 for Yauricocha, $(190) for Bolivar, and $(45) for Cusi. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of comprehensive income [abstract] | ||
Net income | $ 9,417 | $ 25,840 |
Items that may be subsequently classified to net income (loss): | ||
Currency translation adjustments on foreign operations | 667 | (1,572) |
Total comprehensive income | 10,084 | 24,268 |
Total comprehensive income attributable to shareholders | 5,098 | 17,242 |
Non-controlling interests | 4,986 | 7,026 |
Total comprehensive income attributable to shareholders | $ 10,084 | $ 24,268 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Common Shares | Other reserves | Retained earnings (accumulated deficit) | Total attributable to shareholders | Non-controlling Interest | Total |
Balance at Dec. 31, 2017 | $ 230,283 | $ 12,409 | $ (88,121) | $ 154,571 | $ 26,107 | $ 180,678 |
Balance (in shares) at Dec. 31, 2017 | 162,812,764 | |||||
Exercise of RSUs | $ 1,509 | (1,509) | ||||
Exercise of RSUs (in shares) | 614,572 | |||||
Share-based compensation expense | 1,542 | 1,542 | 1,542 | |||
Dividends paid to non-controlling interest | (2,883) | (2,883) | ||||
Total comprehensive income (loss) | (1,572) | 18,814 | 17,242 | 7,026 | 24,268 | |
Balance at Dec. 31, 2018 | $ 231,792 | 10,870 | (69,307) | 173,355 | 30,250 | 203,605 |
Balance (in shares) at Dec. 31, 2018 | 163,427,336 | |||||
Exercise of RSUs | $ 1,145 | (1,145) | ||||
Exercise of RSUs (in shares) | 700,698 | |||||
Share-based compensation expense | 1,174 | 1,174 | 1,174 | |||
Shares repurchased and cancelled (note 9) | $ (2,481) | (363) | (2,844) | (2,844) | ||
Shares repurchased and cancelled (note 9) (in shares) | (2,012,654) | |||||
Total comprehensive income (loss) | 667 | 4,431 | 5,098 | 4,986 | 10,084 | |
Balance at Dec. 31, 2019 | $ 230,456 | $ 11,566 | $ (65,239) | $ 176,783 | $ 35,236 | $ 212,019 |
Balance (in shares) at Dec. 31, 2019 | 162,115,380 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities | ||
Net income from operations | $ 9,417 | $ 25,840 |
Items not affecting cash: | ||
Depletion, depreciation and amortization | 36,084 | 31,349 |
Share-based compensation | 1,174 | 1,542 |
Loss on disposals and write-offs | 1,072 | |
Change in supplies inventory reserve | 238 | 1,730 |
Revisions in estimates of decomissioning liability at closed mine | 144 | |
Interest expense and other finance costs | 5,055 | 3,634 |
NRV adjustment to inventory | 1,110 | |
Current income tax expense | 17,416 | 25,432 |
Deferred income taxes expense (recovery) | (4,888) | 908 |
Unrealized foreign currency exchange (gain) loss | 647 | (1,397) |
Operating cash flows before movements in working capital | 66,359 | 90,148 |
Net changes in non-cash working capital items | (3,680) | 2,447 |
Decomissioning liabilities settled | (914) | (1,163) |
Income tax paid | (22,178) | (29,529) |
Cash generated from operating activities | 39,587 | 61,903 |
Cash used in investing activities | ||
Capital expenditures | (54,621) | (49,315) |
Cash used in investing activities | (54,621) | (49,315) |
Cash from (used in) financing activities | ||
Proceeds from issuance of notes payable | 10,000 | |
Proceeds from issuance of loans and credit facilities | 99,814 | 15,000 |
Repayment of loans and credit facilities | (56,193) | (33,810) |
Loan interest paid | (4,615) | (2,766) |
Dividends paid to non-controlling interest | (2,883) | |
Cash paid to repurchase shares | (2,844) | |
Cash from (used in) financing activities | 36,162 | (14,459) |
Effect of foreign exchange rate changes on cash and cash equivalents | 20 | (175) |
Increase (decrease) in cash and cash equivalents | 21,148 | (2,046) |
Cash and cash equivalents, beginning of year | 21,832 | 23,878 |
Cash and cash equivalents, end of year | $ 42,980 | $ 21,832 |
Description of business and nat
Description of business and nature of operations | 12 Months Ended |
Dec. 31, 2019 | |
Description Of Business And Nature Of Operations Disclosure [Abstract] | |
Description of business and nature of operations | 1 Description of business and nature of operations Sierra Metals Inc. (“Sierra Metals” or the “Company”) was incorporated under the Canada Business Corporations Act on April 11, 1996, and is a diversified Canadian mining company focused on the production, exploration and development of precious and base metals in Peru and Mexico. The Company’s key priorities are to generate strong cash flows and to maximize shareholder value. The Company’s shares are listed on the TSX, NYSE American Exchange, and the Bolsa de Valores de Lima (“BVL”) and its registered office is 161 Bay Street, Suite 4260, Toronto, Ontario, M5J 2S1, Canada. The Company owns an 81.84% interest in the polymetallic Yauricocha Mine in Peru and a 100% interest in the Bolivar and Cusi Mines in Mexico. In addition to its producing mines, the Company also owns various exploration projects in Mexico and Peru. |
Significant accounting policies
Significant accounting policies | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Significant Accounting Policies [Abstract] | |
Significant accounting policies | 2 Significant accounting policies The significant accounting policies used in the preparation of these consolidated financial statements are as follows: (a) Basis of preparation These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and interpretations issued by the International Financial Reporting Interpretations Committee (“IFRIC”). The financial statements were approved by the Board of Directors on March 27, 2020. (b) Basis of consolidation These consolidated financial statements include the accounts of the Company and its subsidiaries, which are entities controlled by the Company. Control exists when the Company is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are consolidated from the date that control commences until the date that control ceases. Non-controlling interests represent equity interests in subsidiaries owned by outside parties. Changes in the parent company’s ownership interest in subsidiaries that do not result in a loss of control are accounted for as equity transactions. The principal subsidiaries of the Company and their geographical locations as at December 31, 2019 are as follows: Name of the subsidiary Ownership interest Location Dia Bras EXMIN Resources Inc. 100% Canada Sociedad Minera Corona, S. A. (“Corona”) 1 81.84% Perú Dia Bras Peru, S. A. C. (“Dia Bras Peru”) 1 100% Perú Dia Bras Mexicana, S. A. de C. V. (“Dia Bras Mexicana”) 100% México Servicios de Minería de la Sierra, S. A. de C. V. 100% México Bolívar Administradores, S. A. de C. V. 100% México EXMIN, S. A. de C. V. 100% México Servicios de Produccion Y Extraccion de Chihuahua, S.A. de C.V 100% México Asesores Administrativos Y de Recursos Humanos, S.A. de C.V 100% México 1 (c) Foreign currency translation (i) Functional currency Items included in the financial statements of each of the Company’s subsidiaries are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The functional currency of Sierra Metals Inc., the parent entity, is the Canadian dollar (“C$”). The functional currency of the Mexican and Peruvian subsidiaries is the United States dollar. (ii) Presentation currency The presentation currency of the financial statements is United States dollar (“$”). The financial statements of entities that have a functional currency different from the presentation currency are translated into the presentation currency as follows: assets and liabilities – at the closing rate at the date of the statement of financial position, income and expenses – at the average rate of the period (as this is considered a reasonable approximation of the actual rates prevailing at the transaction dates). All resulting differences are recognized in other comprehensive income as cumulative translation adjustments. (iii) Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of foreign currency transactions and from the translation at year end exchange rates of monetary assets and liabilities denominated in currencies other than an entity’s functional currency are recognized in the consolidated statement of loss. (d) Cash and cash equivalents Cash and cash equivalents include cash on hand, deposits held with banks, and other short-term highly liquid investments with original maturities of three months or less. (e) Financial Instruments The Company’s financial assets and liabilities (financial instruments) include cash and cash equivalents, trade receivables, accounts payable and accrued liabilities and long-term debt. The Company recognizes financial assets and financial liabilities on the date the Company becomes a party to the contractual provisions of the instruments. A financial asset is derecognized either when the Company has transferred substantially all the risks and rewards of ownership of the financial asset or when cash flows expire. A financial liability is derecognized when the obligation specified in the contract is discharged, canceled or expired. Financial Assets Cash and cash equivalents are recorded at amortized cost using the effective interest method. Trade and other receivables are classified as financial assets at fair value through profit or loss and measured at fair value. Financial Liabilities Financial liabilities, including accounts payable and accrued liabilities, as well as debt and financing obligations are accounted for at amortized cost. (f) Segment reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker is responsible for allocating resources and assessing performance of the operating segments and has been identified as the President and Chief Executive Officer of the Company. (g) Inventories Inventories consist of concentrates, ore stockpiles, supplies and spare parts. Concentrates include stockpiled concentrates at milling operations or at warehouses. Stockpiled ore is comprised of in-process mineralized material awaiting processing at milling facilities and materials for use in milling operations. Concentrates and stockpiled ore are valued at the lower of average production cost and net realizable value (“NRV”). Concentrates and stockpiled ore inventory costs include all direct costs incurred in production including direct labor and materials, freight and amortization, and directly attributable overhead costs. NRV is calculated as the estimated price at the time of sale based on prevailing metal market prices less estimated future costs to convert the inventories into saleable form and estimated costs to sell. The supplies and spare parts inventories will be used for exploration and production and are valued at the lower of average cost and net realizable value. Cost includes acquisition, freight and other directly attributable costs. If the carrying value of inventory exceeds NRV, a write-down is recognized as production costs of sales in the consolidated statement of income (loss). If there is a subsequent increase in the value of the inventory, the previous write-downs to NRV are reversed up to cost to the extent that the related inventory has not been sold. (h) Exploration and evaluation expenditure Exploration and evaluation expenditures are comprised of costs that are directly attributable to: · Researching and analysing existing exploration data; · Conducting geological studies, exploratory drilling and sampling; · Examining and testing extraction and treatment methods; and /or · Compiling pre-feasibility and feasibility studies Exploration expenditures are costs incurred in the search for resources suitable for commercial exploitation. Evaluation expenditures are costs incurred in determining the technical feasibility and commercial viability of a mineral resource. Exploration and evaluation expenditures are capitalized when there is a high degree of confidence in the project’s viability and thus it is probable that future economic benefits will flow to the Company. Any items of property, plant and equipment used for exploration and evaluation are capitalised within property, plant and equipment. Capitalized exploration and evaluation expenditures are considered to be tangible assets as they form part of the underlying mineral property and are recorded within property, plant and equipment - exploration and evaluation expenditures. (i) Property, plant and equipment Property, plant and equipment is stated at cost, less accumulated depreciation and impairment losses. The cost of an item of property, plant and equipment comprises its purchase price, any costs directly attributable to bringing the assets to the location and condition necessary for it to be capable of operating in the manner intended by management and the estimated close down and restoration costs associated with the asset, and for qualifying assets, the associated borrowing costs. Once a mining project has been established as commercially viable, expenditure other than on land, buildings, plant and equipment is capitalized under ‘Mining properties’ together with any amount capitalized relating to that mining project from ‘Exploration and evaluation’. Where an item of property, plant and equipment is comprised of major components with different useful lives, the components are accounted for as separate items of property, plant and equipment and depreciated over their estimated useful lives. Costs associated with commissioning new assets, in the period before they are capable of operating in the manner intended by management, are capitalized. Revenue generated during the development stage from the sale of concentrate and related costs can be deducted from capitalized costs only if the production of the saleable material is directly attributable to bringing the asset to the condition necessary for it to be capable of operating in the manner intended by management. Development costs incurred after the commencement of production are capitalised to the extent they are expected to give rise to future economic benefits and these costs can be measured reliably. Repairs and maintenance costs are charged to the consolidated statement of income (loss) during the period in which they are incurred. Property, plant and equipment is depreciated over its useful life, or over the remaining life of the mine if shorter. Depreciation commences when the asset is available for use. Land is not depreciated. The major categories of property, plant and equipment are depreciated on a straight-line basis using the following average estimated useful lives below: Asset class Useful lives (years) Vehicle, furniture and other assets 3 to 10 Machinery and equipment 5 to 20 Buildings and other constructions 5 to 50 Mining properties are depleted over the life of the mine using the units of production method. In applying the units of production method, depletion is normally calculated using the quantity of material to be extracted in current and future periods based on proven and probable reserves or measured and indicated resources. Such non-reserve material may be included in depletion calculations in limited circumstances and where there is a high degree of confidence in its economic extraction. The Company conducts an annual review of residual values, useful lives, depletion and depreciation methods used for property, plant and equipment. Changes to estimated residual values or useful lives are accounted for prospectively. (j) Impairment of non-financial assets Property, plant and equipment and intangible assets with finite lives are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Impairment is assessed at the level of cash generating units (‘CGUs’). The recoverable amount is the higher of an asset’s fair value less costs to sell or value in use. Fair value less costs to sell is determined as the amount that would be obtained from the sale of the asset in an arm’s length transaction. The best evidence of fair value is the value obtained from an active market or binding sales agreement. Where this information is not available, fair value can be estimated as the present value of future cash flows expected to be realized from the continued use of the asset including expansion projects. Value in use is determined as the present value of expected future cash flows to be realized from the continued use of the asset in its present condition and from its ultimate disposal. Capitalized exploration expenditures are reviewed for indicators of impairment, which included a decision to discontinue activities in a specific area and the existence of sufficient data indicating that the carrying amount of an exploration and evaluation asset is unlikely to be recovered from the development or sale of the asset. Non-financial assets that have suffered impairment are tested for possible reversal of the impairment whenever events or changes in circumstances indicate that the impairment may have reversed. (k) Borrowing costs Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets are capitalized and included in the carrying amounts of those assets until they are ready for their intended use. All other borrowing costs are recognized as an expense in the period incurred. (l) Revenue recognition Revenues include sales of metal concentrates net of treatment and refining charges. The Company sells concentrate from certain of its mines to third-party smelter customers. These concentrates predominantly contain zinc, lead, and copper, along with quantities of gold and silver. The Company recognizes revenue from these concentrate sales when control of the concentrate has transferred to the customer, which is the point in time that the concentrate is delivered to the customer. Upon delivery, the customer has legal right to, physical possession of, and the risks and rewards of ownership of the concentrate. The customer is also committed to accept and pay for the concentrates once delivered; therefore, the customer is able to direct the use of and obtain substantially all of the remaining benefits from the concentrate. The final prices for metals contained in the concentrate are generally determined based on the prevailing spot market metal prices on a specific future date, which is established on a date prior to the concentrate being delivered to the customer. Upon transfer of control at delivery, the Company measures revenue under these contracts based on forward prices agreed upon with the customer at the time of delivery and the most recent determination of the quantity of contained metals less smelting and refining charges charged by the customer. This reflects the best estimate of the transaction price expected to be received at final settlement. The variability associated with the embedded derivative for changes in the metal prices is recognized at fair value. These changes in the fair value of the receivable are adjusted through revenue from other sources at each subsequent financial statement date. (m) Share capital Common shares are classified as equity. Incremental costs directly attributable to the issuance of the shares are recognized as a deduction from equity. (n) Share-based payments The fair value of the estimated number of stock options and restricted share units (“RSUs”) awarded to employees, officers and directors that will eventually vest, determined as of the date of grant, is recognized as share-based compensation expense over the vesting period of the stock options and RSUs, with a corresponding increase to equity. The fair value of each tranche is determined using the Black-Scholes option pricing model with market related inputs as of the date of grant. The fair value of RSUs is the market value of the underlying shares as of the date of grant. The number of awards expected to vest is reviewed at least annually, with any change in the estimate recognized immediately in share-based payments expense with a corresponding adjustment to equity. (o) Share repurchases The Company deducts from contributed surplus any excess of consideration paid over book value where the Company has repurchased any of its own common shares. Book value is calculated as the weighted average price of the shares issued and outstanding prior to the cancellation date. (p) Earnings (loss) per share Basic earnings (loss) per share (“EPS”) is calculated by dividing the net income (loss) for the period attributable to the shareholders of the Company by the weighted average number of common shares outstanding during the period. Diluted EPS is calculated by adjusting the weighted average number of common shares outstanding for dilutive instruments. The number of shares included with respect to options, warrants and similar instruments is computed using the treasury stock method. The Company’s potentially dilutive common shares comprise stock options and RSUs granted to employees. In periods of loss, basic and diluted EPS are the same, as the effect of dilutive instruments is anti-dilutive. (q) Income taxes Tax expense comprises current and deferred income and resource taxes. Current income, deferred income and resources taxes are recognized in profit or loss except to the extent that it relates to a business combination, or items recognized directly in equity or in other comprehensive income. Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognized for the following temporary differences: the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss, and differences relating to investments in subsidiaries and jointly controlled entities to the extent that the parent is able to control the timing of the reversal of the temporary difference and it is probable that they will not reverse in the foreseeable future. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realized simultaneously. A deferred tax asset is recognized for unused tax losses, tax credits and deductible temporary differences, to the extent that it is probable that future taxable profits will be available against which they can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized. (r) Decommissioning and restoration liabilities Decommissioning and restoration costs include the dismantling and demolition of infrastructure, the removal of residual materials and the remediation of disturbed areas. These costs are a normal consequence of mining activity and the majority of these expenditures are expected to be incurred at the end of the life of mine. Estimated decommissioning and restoration costs are provided in the accounting period when the obligation arising from the related disturbance occurs, based on the net present value of the estimated future costs discounted using the credit adjusted risk free rate. This provision is adjusted in each reporting period to reflect known developments, e.g. revisions to costs estimates and the timing of cash outflows. The initial decommissioning and restoration provision together with other movements resulting from changes in estimated cash flows or the credit adjusted risk free rates is capitalized within property, plant and equipment and amortized over the life of the asset to which it relates except where it relates to a closed mine where the expenses are recognized in the statement of loss. Provision is made for the estimated present value of costs of environmental clean-up obligations outstanding as at the date of the statement of financial position, and these costs are charged to the income statement as an operating cost. The amortization or unwinding of the discount applied in establishing the net present value of provision is accreted to the income statement in each accounting period with each interest charge included as a financing cost rather than as an operating cost. |
Significant accounting estimate
Significant accounting estimates and judgments | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of changes in accounting estimates [abstract] | |
Significant accounting estimates and judgments | 3 Significant accounting estimates and judgments In the application of the Company’s accounting policies, which are described in note 2, management is required to make judgements, estimates and assumptions about the effects of uncertain future events on the carrying amounts of assets and liabilities. The estimates and associated assumptions are based on management’s best knowledge of the relevant facts and circumstances and historical experience. Actual results may differ from these estimates, potentially having a material future effect on the Company’s consolidated financial statements. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. The following are the significant judgements that management has made in the process of applying the Company’s accounting policies and that have the most significant effect on the amounts recognised in the consolidated financial statements: (a) Impairment review of asset carrying values In accordance with the Company’s accounting policy (note 2(j)), at every reporting period, the Company assesses whether there are any indicators that the carrying value of its assets or Cash Generating Units (“CGUs”) may be impaired, which is a significant management judgment. Where there is an indication that the carrying amount of an asset may not be recoverable, the Company prepares a formal estimate of the recoverable amount by analyzing discounted cash flows. The resulting valuations are particularly sensitive to changes in estimates such as long-term commodity prices, exchange rates, sales volume, operating costs, and discount rates. In the event of impairment, if there is a subsequent adverse change in any of the assumptions or estimates used in the discounted cash flow model, this could result in a further impairment of the asset. Also, in accordance with the Company’s accounting policy (note 2(h)), the Company capitalizes evaluation expenditures when there is a high degree of confidence that these costs are recoverable and have a probable future benefit. As at December 31, 2019 and 2018, the Company assessed the carrying value of its long-lived assets and exploration and evaluation expenditures and determined that no impairment was required. (b) Mineral reserves and resources The Company estimates mineral reserves and resources based on information prepared by qualified persons as defined in accordance with the Canadian Securities Administrators’ National Instrument (“NI”) 43-101. These estimates form the basis of the Company’s life of mine (“LOM”) plans, which are used for a number of important and significant accounting purposes, including: the calculation of depletion expense and impairment charges, forecasting the timing of the payment of decommissioning costs and future taxes. There are significant uncertainties inherent in the estimation of mineral reserves and the assumptions used, including commodity prices, production costs, recovery rates and exchange rates. These assumptions may change significantly when new information becomes available and could result in mineral reserves being revised, which in turn would impact depletion expense, asset carrying values and the provision for decommissioning costs. (c) Deferred tax assets and liabilities The Company’s management makes significant estimates and judgments in determining the Company’s tax expense for the period and the deferred tax assets and liabilities. Management interprets tax legislation in a variety of jurisdictions and makes estimates of the expected timing of the reversal of deferred tax assets and liabilities. In addition, management makes estimates related to expectations of future taxable income based on cash flows from operations and the application of existing tax laws in each jurisdiction. Assumptions used in the cash flow forecast are based on management’s estimates of future production and sales volume, commodity prices, operating costs, capital expenditures, dividends, and decommissioning and reclamation expenditures. These estimates are subject to risk and uncertainty and could result in an adjustment to the deferred tax provision and a corresponding credit or charge to the statement of loss. The Company is subject to assessments by various tax authorities who may interpret the tax laws differently. These differences may impact the final amount or the timing of the payment of taxes. The Company provides for such differences where known based on management’s best estimates of the probable outcome of these matters. (d) Decommissioning and restoration liabilities costs The Company’s provision for decommissioning and restoration costs is based on management’s best estimate of the present value of the future cash outflows required to settle the liability. In determining the liability, management makes estimates about the future costs, inflation, foreign exchange rates, risks associated with the cash flows, and the applicable risk-free interest rates for discounting future cash flows. Changes in any of these estimates could result in a change in the provision recognized by the Company. Also, the ultimate costs of environmental disturbance are uncertain and cost estimates can vary in response to many factors including changes to the relevant legal requirements, the emergence of new restoration techniques or experience at other mine sites. Changes in decommissioning and restoration liabilities are recorded with a corresponding change to the carrying amounts of the assets to which they relate. Adjustments made to the carrying amounts of the asset can result in a change to the depreciation charged in the consolidated statement of loss. (e) Functional currency The functional currency for each of the Company’s subsidiaries is the currency of the primary economic environment in which the entity operates. The Company has determined that the functional currency of each entity is the U.S. dollar. Determination of functional currency may involve certain judgements to determine the primary economic environment and the Company reconsiders the functional currency of its entities if there is a change in events and conditions which determined the primary economic environment. |
Adoption of new accounting stan
Adoption of new accounting standards and future accounting changes | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of expected impact of initial application of new standards or interpretations [abstract] | |
Adoption of new accounting standards and future accounting changes | 4 Adoption of new accounting standards and future accounting changes The following significant accounting policy was amended as a result of the adoption of IFRS 16, Leases (IFRS 16). All other significant accounting policies are consistent with those reported in the Company’s 2018 annual financial statements. IFRS 16, Leases (“IFRS 16”) The following leases accounting policies have been applied as of January 1, 2019 on adoption of IFRS 16 using the modified retrospective approach. For comparative periods prior to 2019, the Company applied leases policies in accordance with IAS 17, Leases (IAS 17) and IFRIC 4, determining whether an arrangement contains a lease (IFRIC 4). The Company did not have any material effect by adopting the IFRS 16 requirements on January 1, 2019. At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Company assesses whether the contract involves the use of an identified asset, whether the Company has the right to obtain substantially all of the economic benefits from use of the asset during the term of the arrangement and if the Company has the right to direct the use of the asset. At inception or on reassessment of a contract that contains a lease component, the Company allocates the consideration in the contract to each lease component on the basis of their relative standalone prices. As a lessee, we recognize a right-of-use asset, and a lease liability at the commencement date of a lease. The right-of-use asset is initially measured at cost, which is comprised of the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any decommissioning and restoration costs, less any lease incentives received. The right-of-use asset is subsequently depreciated from the commencement date to the earlier of the end of the lease term, or the end of the useful life of the asset. In addition, the right-of-use asset may be reduced due to impairment losses, if any, and adjusted for certain remeasurements of the lease liability. A lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by the interest rate implicit in the lease, or if that rate cannot be readily determined, the incremental borrowing rate. Lease payments included in the measurement of the lease liability are comprised of: • fixed payments, including in-substance fixed payments, less any lease incentives receivable; • variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date; • amounts expected to be payable under a residual value guarantee; • exercise prices of purchase options if we are reasonably certain to exercise that option; and • payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease. The lease liability is measured at amortized cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, or if there is a change in our estimate or assessment of the expected amount payable under a residual value guarantee, purchase, extension or termination option. Variable lease payments not included in the initial measurement of the lease liability are charged directly to profit. The Company has elected not to recognize right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months or less and leases of low-value assets. The lease payments associated with these leases are charged directly to profit on a straight-line basis over the lease term. The transition to IFRS 16 did not result in any material impact or adjustments on adoption and the Company’s financial commitments as at January 1, 2019 are the same as December 31, 2018, and thus, no reconciliation is required. |
Trade and other receivables
Trade and other receivables | 12 Months Ended |
Dec. 31, 2019 | |
Trade and other receivables [abstract] | |
Trade and other receivables | 5 Trade and other receivables December 31, December 31, 2019 2018 $ $ Trade receivables 20,549 19,199 Sales tax receivables 11,343 6,718 Other receivables — 90 31,892 26,007 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Inventories [Abstract] | |
Inventories | 6 Inventories December 31, December 31, 2019 2018 $ $ Stockpiles 4,096 1,074 Concentrates 4,376 4,476 Supplies and spare parts 17,581 16,436 26,053 21,986 Cost of sales are comprised of production costs of sales and depletion, depreciation and amortization, and represent the cost of inventories recognized as an expense for the years ended December 31, 2019 and 2018 of $171,276 and $146,589, respectively. Supplies and spare parts inventory as at December 31, 2019 is stated net of a provision of $3,632 (2018 - $3,331) to write inventories down due to obsolescence or infrequent use. During the year ended December 31, 2019, the Company wrote down stockpiles and concentrates inventory to its NRV, recording a charge of $804 (2018 - $1,110). Stockpiles and concentrates inventory held at NRV as at December 31, 2019 was $468 (2018 - $168). |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Property, plant and equipment | 7 Property, plant and equipment Cost Plant and Mining Assets under Exploration Total $ Balance as of January 1, 2018 223,229 432,162 33,853 51,315 740,559 Additions 10,143 4,648 20,781 13,209 48,781 Change in estimate of decomissioning liability 512 — — — 512 Disposals (1,115 ) — — — (1,115 ) Transfers 7,152 — (7,152 ) — — Balance as of December 31, 2018 239,921 436,810 47,482 64,524 788,737 Additions 14,455 6,249 26,046 8,751 55,501 Change in estimate of decomissioning liability 3,713 — — — 3,713 Disposals (11,768 ) — (28 ) — (11,796 ) Transfers 23,348 4,016 (23,348 ) (4,016 ) — Balance as of December 31, 2019 269,669 447,075 50,152 69,259 836,155 Accumulated depreciation Plant and Mining Assets under Exploration Total $ Balance as of January 1, 2018 142,105 319,173 — 13,041 474,319 Depletion, depreciation and amortization 14,562 16,787 — — 31,349 Disposals (444 ) — — — (444 ) Balance as of December 31, 2018 156,223 335,960 — 13,041 505,224 Depletion, depreciation and amortization 21,447 15,093 — — 36,540 Disposals (10,724 ) — — — (10,724 ) Balance as of December 31, 2019 166,946 351,053 — 13,041 531,040 Net Book Value - December 31, 2019 102,723 96,022 50,152 56,218 305,115 Net Book Value - December 31, 2018 83,698 100,850 47,482 51,483 283,513 For the year ended December 31, 2019, depletion and depreciation expense of $36,084 (2018: $31,349) has been charged to depletion, depreciation and amortization in property, plant, and equipment. Additionally, depletion and depreciation expense of $1,390 (2018: $887) has been capitalized to inventory. During the year ended December 31, 2019, the Company has capitalized borrowing costs amounting to $0 (2018 – $116) on qualifying assets. Borrowing costs for 2018 were capitalized at the weighted average rate of 5.25%. |
Accounts payable and accrued li
Accounts payable and accrued liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Trade and other current payables [abstract] | |
Accounts payable and accrued liabilities | 8 Accounts payable and accrued liabilities December 31, December 31, 2019 2018 $ $ Trade payables 30,422 24,662 Other payables and accrued liabilities 14,488 11,429 44,910 36,091 All accounts payable and accrued liabilities are expected to be settled within 12 months. |
Current and deferred income tax
Current and deferred income tax liability | 12 Months Ended |
Dec. 31, 2019 | |
Current And Deferred Income Tax Liability [Abstract] | |
Current and deferred income tax liability | 9 Current and deferred income tax liability (a) Income and resource taxes 2019 2018 $ $ Current Tax Expense Current income tax 17,416 25,432 17,416 25,432 Deferred Tax Recovery Deferred tax expense (recovery) (4,888 ) 908 (4,888 ) 908 Total tax expense 12,528 10,348 (b) Tax rate reconciliation A reconciliation between income tax expense and the product of loss before income taxes multiplied by the combined Canadian federal and provincial income tax rate for the period ended December 31 is as follows: 2019 2018 $ $ Income before income taxes 21,945 52,180 Expected Tax Rate 26.50% (2018 - 26.50%) 5,776 13,828 Effect of tax rate differences 567 1,672 Stock based compensation costs 291 395 Other non-deductible expenses 616 84 Unrealized foreign exchange income 412 347 Inflation adjustment for Mexico tax purposes (224 ) (321 ) Expired losses 720 381 Change in benefit of other temporary differences not recognized 1,925 572 Foreign exchange and other (1,391 ) 2,555 Mining royalties and other 3,836 6,827 12,528 26,340 (c) Deferred tax asset and liability The significant components and movements of the Company’s net deferred tax assets and liabilities are as follows: Balance Balance Balance January 1, Change in December 31, Change in December 31, $ $ $ $ $ Property, Plant, and equipment (1,796 ) 130 (1,666 ) 850 (816 ) Inventory (1,462 ) (636 ) (2,098 ) 920 (1,178 ) Provisions 667 2,089 2,756 970 3,726 Decommissioning liabilities 3,928 (24 ) 3,904 1,098 5,002 Mining royalties 1,241 223 1,464 151 1,615 Mining assets (42,041 ) 76 (41,965 ) (589 ) (42,554 ) Deferred revenue — — — — — Other items 1,532 (1,216 ) 316 1,982 2,298 Non-capital losses 8,048 (1,496 ) 6,552 (266 ) 6,286 (29,883 ) (854 ) (30,737 ) 5,116 (25,621 ) Deferred tax assets have not been recognized in respect of the following temporary differences: 2019 2018 $ $ Non-capital and capital losses 46,364 37,696 Property, plant and equipment 49 9 Mineral properties 2,236 2,128 Other (56 ) (53 ) 48,593 39,780 (d) Tax losses In Canada, the Company has aggregate tax losses not recognized of $30,517 (December 31, 2018 – $25,605) expiring in periods from 2026 to 2039. Deferred tax assets have not been recognized in respect of these losses because it is not probable that future taxable profit will be available against which the Company can utilise the benefits there from. Also, the Company has $1,403 of capital losses in Canada that are without expiry as at December 31, 2019 (December 31, 2018 - $8,578). (e) Unrecognized deferred tax liabilities As at December 31, 2019, the Company has taxable temporary difference of $77,703 (2018 - $52,396) relating to investments in subsidiaries that has not been recognized because the Company controls whether the liability will be incurred and it is satisfied that it will not be incurred in the foreseeable future. |
Loans payable and notes payable
Loans payable and notes payable | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of detailed information about borrowings [abstract] | |
Loans payable and notes payable | 10 Loans payable and notes payable December 31, December 31, 2019 2018 $ $ Current Acquisition loan with Banco de Credito del Peru (a) — 6,188 Revolving credit facility with Banco de Credito del Peru (b) — 15,000 Notes payable to BBVA Banco Continental (c) — 5,000 Loan with FIFOMI (d) — 1,530 — 27,718 Non-current Acquisition loan with Banco de Credito del Peru (a) — 28,408 Senior Secured Corporate Credit Facility with Banco de Credito del Peru (e) 99,814 — Loan with FIFOMI (d) — 127 99,814 28,535 Total loans payable 99,814 56,253 (a) Corona Acquisition Loan with Banco de Credito del Peru S.A. (“BCP”) On May 24, 2011, the Company’s wholly owned subsidiary Dia Bras Peru entered into a loan agreement with BCP amounting to $150,000. After deducting financing costs of $3,750, the net proceeds were $146,250. The proceeds from this loan were used to fund a portion of the purchase consideration for the acquisition of the Company’s 81.84% interest in Corona in Peru. The loan was repayable over 5 years ending on May 24, 2016 and carried interest at a rate of 3M LIBOR plus 4.15% per annum, payable quarterly in arrears. On August 7, 2015, Dia Bras Peru signed an amended agreement with BCP for the then outstanding debt balance of $48,000. The most significant amendments to the agreement were: · The remaining $48M due on the facility was split into 2 tranches · Tranche 1, in the amount of $24M had quarterly principal repayments of $1.5M beginning in November 2016 and ending in August 2020 · Tranche 2, in the amount of $24M had no quarterly principal repayments and was to be repaid in full in August 2020 · One-year principal repayment grace period · Reduced interest rate equal to 3.65% plus 3M LIBOR vs previous rate of 4.15% plus 3M LIBOR · Term of the facility extended for 5 years Principal repayments totalling $34,500 were made during the twelve months ended December 31, 2019 (2018 - $6,000), as the Company elected to repay the amount owed on the Corona Acquisition Loan in full during May 2019. The loan was recorded at amortized cost and was being accreted to face value over 5 years using an effective interest rate of 4.71%. An amortization expense related to the transaction costs for $218 was recorded for the twelve months ended December 31, 2019 (2018 - $200). Interest payments totalling $868 were made during the twelve months ended December 31, 2019 (2018 - $2,177). (b) Dia Bras Peru (“DBP”) Credit Facility with BCP On August 9, 2017, the Company’s subsidiary DBP, entered into a credit facility with BCP for up to $15,000. The credit facility was for a one-year term and was used to fund short term working capital requirements. On August 9, 2017, the Company drew $8,000 from this facility at an interest rate of LIBOR plus 0.95%. On August 31, 2017, the Company drew the remaining $7,000 from this facility at an interest rate of LIBOR plus 1.05%. The credit facility was repaid in full on the anniversary date of August 9, 2018, while interest payments were made quarterly. On August 9, 2018, the Company renewed the credit facility and drew $15,000 for another one-year term to be used to fund short term working capital requirements. The new facility had an interest rate of 3M LIBOR plus 1.04%, with interest payments due quarterly. The credit facility was guaranteed by the common shares of DBP’s subsidiary, Sociedad Minera Corona. The Company repaid the $15,000 owed on this credit facility on May 9, 2019. (c) Corona notes payable with BBVA Banco Continental In order to fund its short-term working capital needs, Corona repaid and drew down the following notes payable: · On March 31, 2018, a $5,000 revolving credit facility with BBVA Banco Continental was obtained. The credit facility bears an interest rate of three-month LIBOR plus 2.52%. · On September 25, 2018, the Company renewed the $5,000 revolving credit facility with BBVA Banco Continental at an interest rate of 2.68%, with a term of 90 days, and the facility was repaid in full on December 24, 2018. · On December 24, 2018, the Company renewed the revolving credit facility with BBVA Banco Continental, and drew $5,000 at an interest rate of 2.80%, with a term of 30 days. The Company repaid the $5,000 owing on the revolving credit facility during January 2019. (d) FIFOMI loan · During January 2015, the Company’s Mexican Subsidiary, Dia Bras Mexicana S.A. de C.V, (“DBM”) received a loan of MXP$120 million from Nacional Financiera, Sociedad Fiduciaria del Fideicomiso de Fomento Minero (“FIFOMI”) to be used for working capital purposes and capital expenditures, specifically the expansion of the Piedras Verdes Plant. On February 2, 2015, DBM drew MXP$120 million ($7,995). After deducting transaction costs of $124, net proceeds were $7,871. Monthly principal repayments took place over four years beginning in January 2016 at an interest rate of TIIE + 3%. Interest payments began in February 2015 and during the twelve months ended December 31, 2019, DBM made interest payments of $24 (MXP$456) (2018 – $248 (MXP$4,772)). Principal payments of $1,693 (MXP$32,500) (2018 - $1,560 (MXP$30,000)) have been made during the twelve months ended December 31, 2019 as the Company elected to repay the loan in full during the first quarter of 2019. (e) Senior Secured Corporate Credit Facility with BCP On March 11, 2019, the Company entered into a six-year senior secured corporate credit facility (“Corporate Facility”) with BCP that provides funding of up to $100 million effective March 8, 2019. The Corporate Facility provides the Company with additional liquidity and will provide the financial flexibility to fund future capital projects in Mexico as well as corporate working capital requirements. The Company also used the proceeds of the new facility to repay existing debt balances. The most significant terms of the agreement were: · Term: 6-year term maturing March 2025 · Principal Repayment Grace Period: 2 years · Principal Repayment Period: 4 years · Interest Rate: 3.15% + LIBOR 3M The Corporate Facility is subject to customary covenants, including consolidated net leverage and interest coverage ratios and customary events of default. The Company is in compliance with all covenants as at December 31, 2019. On March 11, 2019, DBP drew down $21.4 million from this facility. On May 8, 2019, DBP drew down another $48.6 million from this facility, and on June 29, 2019, DBP drew down the remaining $30 million available from this facility. Interest is payable quarterly and interest payments began on the drawn and undrawn portions of the facility starting in June 2019. During the twelve months ended December 31, 2019, DBP made interest payments of $2,910 (2018 - $nil). Principal payments on the amount drawn from the facility will begin in March 2021. The Company repaid the amount owed on the Corona Acquisition Loan on May 11, 2019 using funds drawn from the new facility. The loan is recorded at amortized cost and is being accreted to face value over 6 years using an effective interest rate of 5.75%. |
Decommissioning liability
Decommissioning liability | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of other provisions [abstract] | |
Decommissioning liability | 11 Decommissioning liability December 31, December 31, 2019 2018 $ $ Balance, beginning of year 13,304 13,271 Liabilities settled during the year (914 ) (1,293 ) Interest cost 647 684 Revisions and new estimated cash flows (1) 3,857 642 Balance, end of year 16,894 13,304 Less: current portion (865 ) (2,038 ) Long-term decommissioning liability 16,029 11,266 (1) Revision to decommissioning liability includes mainly $3.9 million of increase in asset retirement obligation at Yauricocha resulting from a revised mine-closure plan that includes activities related to the expanded tailings disposition facility. . The Company’s decommissioning liability represents the present value of estimated costs for required future decommissioning and other site restoration activities. The majority of the decommissioning and site restoration expenditures occur at the end of each operation’s life. During 2019 and 2018, the decommissioning liability was calculated based on the following key assumptions: 2019 2018 Mexico Peru Mexico Peru Estimated undiscounted cash flows ($) 949 20,249 965 15,580 Discount rate (%) 7.0 5.0 10.0 7.0 Settlement period (years) 4 4-15 6 5-11 Inflation (%) 4.0 2.0 4.0 2.5 |
Other liabilities
Other liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Other Liabilities Abstract | |
Other liabilities | 12 Other liabilities December 31, December 31, 2019 2018 $ $ Current Profit-sharing and other employee related obligations (a) 7,248 8,908 Non-current Other employee related obligations 1,297 1,081 Lease liabilities 257 — 1,554 1,081 (a) Profit sharing and other employee related obligations As at December 31, 2019, there is a provision amounting to $4,118 for employee profit sharing in Peru and $3,130 for wages, salaries and other employee benefits outstanding (December 31, 2018 - $5,965 and $2,943, respectively). |
Share capital and share-based p
Share capital and share-based payments | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of terms and conditions of share-based payment arrangement [abstract] | |
Share capital and share-based payments | 13 Share capital and share-based payments (a) Authorized capital The Company has an unlimited amount of authorized common shares with no par value. (b) Restricted share units (“RSUs”) The changes in RSU’s issued during the years ended December 31, 2019 and 2018 was as follows: December 31, December 31, 2019 2018 $ $ Outstanding, beginning of period 1,380,085 1,316,314 Granted 1,356,418 679,627 Exercised (700,698 ) (614,572 ) Forfeited (405,382 ) (1,284 ) Outstanding, end of period 1,630,423 1,380,085 On June 29, 2012, the Company’s shareholders approved the RSU plan, whereby RSUs may be granted to directors, officers, consultants or employees at the discretion of the Board of Directors. The RSU plan provides for the issuance of common shares from treasury upon the exercise of vested RSUs at no additional consideration. There is no cash settlement related to the vesting of RSU’s as they are all settled with equity. The current maximum number of common shares authorized for issue under the RSU plan is 8,000,000. The RSUs have vesting conditions determined by the Board of Directors, and the vesting conditions are non-market conditions and are not performance based. During the year ended December 31, 2019, the Company granted RSU’s totalling 1,356,418 which had a fair value of C$1.91 based on the closing share price at grant date. RSUs exercised during the year ended December 31, 2019 had a weighted average fair value of C$2.62 and the RSUs forfeited had a weighted average fair value of C$2.68 (2018 – C$1.52). As at December 31, 2019, the weighted average fair value of the RSUs outstanding is C$2.34 (2018 – C$3.01). The total RSU expense recognized during the year ended December 31, 2019 was $1,174 with a corresponding credit to other reserves (2018 - $1,542). (c) Share Re-purchase On December 11, 2018, the Company approved a share repurchase program in the form of a normal course issuer bid (the “NCIB”) in the open market through the facilities of the Toronto Stock Exchange (the "TSX") and other Canadian marketplaces / alternative trading systems. Pursuant to the NCIB, the Company proposed to repurchase for cancellation up to 1,500,000 common shares of the Company which represented approximately 0.92% of the issued and outstanding common shares as at December 11, 2018. In connection with its implementation of the NCIB, Sierra Metals obtained TSX approval of its notice of intention to make a normal course issuer bid (the “Notice”). The Notice provided that the Company may purchase up to 1,500,000 common shares through the facilities of the TSX and other Canadian marketplaces / alternative trading systems during the 12-month period commencing on December 17, 2018 and ending on or before December 16, 2019. Any common share purchases made pursuant to the NCIB will be at the prevailing market price at the time of the transaction, purchased in accordance with the policies of the TSX and conducted by CIBC based on the automatic share purchase plan signed on April 15, 2019. In accordance with TSX rules, any daily purchases made under the NCIB are limited to a maximum of 4,214 common shares, which represents 25% of the average daily trading volume of 16,858 common shares on the TSX for the six months ended November 30, 2018. However, the Company may make one block purchase per calendar week which exceeds the daily repurchase restriction, up to and including the maximum annual aggregate limit of 1,500,000 common shares. Once the block purchase exception has been relied on, the Company may not make any further purchases under the NCIB for the remainder of that calendar day. On September 18, 2019, the Company received approval from the TSX to increase the number of common shares which the Company may repurchase for cancellation under the NCIB from 1,500,000 shares to 2,500,000 shares. On October 10, 2019, the Company executed an addendum to their automatic share purchase plan with CIBC to include a maximum price per share of CAD$2.50 and a maximum of 250,000 common shares in total for block purchases. Other than the increase to the maximum number of Shares which may be purchased by the Company pursuant to the NCIB, no further amendments were made to the NCIB, and the NCIB terminated on December 16, 2019. During the twelve months ended December 31, 2019, the Company purchased 2,012,654 shares under the NCIB for total consideration of $2,844 and a book value of $2,481. |
Non-controlling interest
Non-controlling interest | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Non Controlling Interest [Abstract] | |
Non-controlling interest | 14 Non-controlling interest Set out below is the summarized financial information of our subsidiary Corona which has a material non-controlling interest (note 2(b)). The information below is before intercompany eliminations and after fair value adjustments on acquisition of the entity. Summarized balance sheet December 31, December 31, 2019 2018 $ $ Current Assets 90,438 78,207 Liabilities (27,863 ) (36,622 ) Total current net assets 62,575 41,585 Non-current Assets 171,884 162,733 Liabilities (39,915 ) (37,519 ) Total non-current net assets 131,969 125,214 Net assets 194,544 166,799 Summarized income statement For the year ended December 31, 2019 2018 $ $ Revenue 155,983 168,657 Income before income tax 41,796 62,735 Income tax expense (14,338 ) (24,047 ) Total income 27,458 38,688 Total income attributable to non-controlling interests 4,986 7,026 Dividends paid to non-controlling interests — (2,883 ) Summarized cash flows For the year ended December 31, 2019 2018 $ $ Cash flows from operating activities Cash generated from operating activities 63,887 83,178 Net changes in non cash working capital items (2,895 ) 875 Decomissioning liabilities settled (915 ) (1,293 ) Income taxes paid (21,885 ) (29,529 ) Net income 38,192 53,231 Net cash used in investing activities (25,882 ) (25,243 ) Net cash from/(used in) financing activities 4,775 (29,963 ) Effect of foreign exchange rate changes on cash and cash equivalents 21 (35 ) Increase (decrease) in cash and cash equivalents 17,106 (2,010 ) Cash and cash equivalents, beginning of period 17,898 19,908 Cash and cash equivalents, end of period 35,004 17,898 |
Expenses by nature
Expenses by nature | 12 Months Ended |
Dec. 31, 2019 | |
Expenses by nature [abstract] | |
Expenses by nature | 15 Expenses by nature Mining costs include mine production costs, milling and transport costs, royalty expenses, site administration costs but not the primary mine development costs which are capitalized and depreciated over the specific useful life or reserves related to that development and ore included in depreciation and amortization. The mining costs for the years ended December 31, 2019 and 2018 relate to the Yauricocha, Bolivar and Cusi Mines. (a) Mining costs Year ended December 31, 2019 2018 $ $ Employee compensation and benefits 28,986 27,458 Third party and contractors costs 60,905 46,599 Depreciation 36,084 31,409 Consumables 39,515 34,655 Changes in inventory and other 5,786 6,468 171,276 146,589 (b) General and administrative expenses Year ended December 31, 2019 2018 $ $ Salaries and benefits 9,763 7,333 Consulting and professional fees 2,705 3,987 Office expenses 1,539 1,507 Marketing and communication expenses 807 805 Share based compensation expense 1,174 1,542 Listing and filing fees 318 344 Director expenses 1,282 1,312 Travelling expense 596 627 Other 1,331 1,462 19,515 18,919 |
Other income (expenses)
Other income (expenses) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Other Income Expenses [Abstract] | |
Other income (expenses) | 16 Other income (expenses) 2019 2018 $ $ Gain/(loss) on sale of supplies and fixed assets (162 ) 85 Interest income 203 36 Allowance for inventory obsolescence (238 ) (1,739 ) Miscellaneous income (expenses) (310 ) 330 (507 ) (1,288 ) |
Interest expense and other fina
Interest expense and other finance costs | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Interest Expense And Other Finance Costs [Abstract] | |
Interest expense and other finance costs | 17 Interest expense and other finance costs 2019 2018 $ $ Interest expense on loans 4,431 2,913 Amortization of loan transaction costs — 37 Interest cost on decommissioning liability 647 684 5,078 3,634 |
Segment reporting
Segment reporting | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of operating segments [abstract] | |
Segment reporting | 18 Segment reporting The Company primarily manages its business on the basis of the geographical location of its operating mines. The Company’s operating segments are based on the reports reviewed by the senior management group that are used to make strategic decisions. The Chief Executive Officer considers the business from a geographic perspective considering the performance of the Company’s business units. The corporate division only earns income that is considered to be incidental to the activities of the Company and thus it does not meet the definition of an operating segment; as such it has been included within “other reconciling items.” The reporting segments identified are the following: · Peru – Yauricocha Mine · Mexico – Bolivar and Cusi Mines The following is a summary of the reported amounts of net income (loss) and the carrying amounts of assets and liabilities by operating segment: Peru Mexico Mexico Canada Yauricocha Mine Bolivar Mine Cusi Mine Corporate Total Year ended December 31, 2019 $ $ $ $ $ Revenue (1) 155,983 60,402 12,653 — 229,038 Production cost of sales (79,339 ) (45,491 ) (10,362 ) — (135,192 ) Depletion of mineral property (10,631 ) (2,177 ) (2,314 ) — (15,122 ) Depreciation and amortization of property, plant and equipment (10,346 ) (8,147 ) (2,469 ) — (20,962 ) Cost of sales (100,316 ) (55,815 ) (15,145 ) — (171,276 ) Gross profit from mining operations 55,667 4,587 (2,492 ) — 57,762 Income (loss) from operations 39,879 (4,918 ) (1,079 ) (5,376 ) 28,506 Interest expense and other finance costs (4,624 ) (34 ) (8 ) (412 ) (5,078 ) Other income (expense) (637 ) 105 25 (507 ) Foreign currency exchange loss (170 ) (21 ) (5 ) (780 ) (976 ) Income (loss) before income tax 34,448 (4,868 ) (1,067 ) (6,568 ) 21,945 Income tax expense (14,297 ) 1,450 319 — (12,528 ) Net income (loss) from operations 20,151 (3,418 ) (748 ) (6,568 ) 9,417 December 31, 2019 Peru Mexico Canada Total $ $ $ $ Total assets 241,839 162,657 6,951 411,447 Non-current assets 175,244 131,810 91 307,147 Total liabilities 137,146 31,130 31,152 199,428 (1) Includes provisional pricing adjustments of: $216 for Bolivar Per u Mexico Mexico Canada Yauricocha Mine Bolivar Mine Cusi Mine Corporate Total Year ended December 31, 2018 $ $ $ $ $ Revenue (1) 168,657 52,451 11,263 — 232,371 Production cost of sales (74,731 ) (33,168 ) (7,281 ) — (115,180 ) Depletion of mineral property (13,229 ) (2,918 ) (640 ) — (16,787 ) Depreciation and amortization of property, plant and equipment (4,626 ) (8,197 ) (1,799 ) — (14,622 ) Cost of sales (92,586 ) (44,283 ) (9,720 ) — (146,589 ) Gross profit from mining operations 76,071 8,168 1,543 — 85,782 Income (loss) from operations 60,640 1,836 919 (5,083 ) 58,312 Interest expense and other finance costs (2,637 ) — (997 ) — (3,634 ) Other income (expense) 1,029 (1,967 ) (347 ) (3 ) (1,288 ) Foreign currency exchange loss (26 ) (1,694 ) (299 ) 809 (1,210 ) Income (loss) before income tax 59,006 (1,825 ) (724 ) (4,277 ) 52,180 Income tax expense (24,068 ) (1,768 ) (504 ) — (26,340 ) Net income (loss) from operations 34,938 (3,593 ) (1,228 ) (4,277 ) 25,840 December 31, 2018 Peru Mexico Canada $ $ $ $ Total assets 209,159 145,775 1,507 356,441 Non-current assets 163,222 121,654 67 284,943 Total liabilities 124,020 27,607 1,209 152,836 (1) Includes provisional pricing adjustments of: $1,289 for Yauricocha, $(190) for Bolivar, and $(45) for Cusi. For the year ended December 31, 2019, 68% of the revenues ($155,983) were from two customers based in Peru and the remaining 32% of the revenues ($73,055) were from two customers based in Mexico. In Peru, the two customers accounted for 53% and 47% of the revenues. In Mexico, the two customers accounted for 82% and 18% of the revenues. For the year ended December 31, 2018, 73% of the revenues ($168,657) were from two customers based in Peru and the remaining 27% of the revenues ($63,714) were from two customers based in Mexico. In Peru, the two customers accounted for 79% and 21% of the revenues. In Mexico, the two customers accounted for 82% and 18% of the revenues. As at December 31, 2019, the trade receivable balance of $20,549 includes amounts outstanding of $4,354 and $16,195 from two customers in Mexico and two customers in Peru, respectively. |
Financial instruments and finan
Financial instruments and financial risk management | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments And Financial Risk Management [Abstract] | |
Financial instruments and financial risk management | 19 Financial instruments and financial risk management The Company’s financial instruments include cash and cash equivalents, trade receivables, financial assets, accounts payable and loans and notes payable. (a) Financial assets and liabilities by category At December 31, 2019 Amortized FVTPL Total $ $ $ Financial assets Cash and cash equivalents 42,980 — 42,980 Trade receivables (1) — 20,549 20,549 Total Financial assets 42,980 20,549 63,529 Financial liabilities Accounts payable 30,422 — 30,422 Loans payable 99,814 — 99,814 Total Financial liabilities 130,236 — 130,236 At December 31, 2018 Loans and FVTPL Total $ $ $ Financial assets Cash and cash equivalents 21,832 — 21,832 Trade receivables (1) 19,199 19,199 Financial assets — — — Total Financial assets 21,832 19,199 41,031 Financial liabilities Accounts payable 24,662 — 24,662 Loans payable 56,253 — 56,253 Total Financial liabilities 80,915 — 80,915 (1) Trade receivables exclude sales and income tax receivables. (b) Fair value of financial instruments As at December 31, 2019 and 2018, the fair value of the financial instruments approximates their carrying value. (c) Fair value hierarchy Financial instruments carried at fair value are categorized based on a three-level valuation hierarchy that reflects the significance of inputs used in making the fair value measurements as follows: Level 1 – quoted prices (unadjusted) in active markets for identical assets and liabilities Level 2 – inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices) The Company’s metal concentrate sales are subject to provisional pricing with the selling prices adjusted at the end of the quotational period. The Company’s trade receivables are marked-to-market at each reporting period based on quoted forward prices for which there exists an active commodity market. Level 3 – inputs for the asset or liability that are not based on observable market data. At December 31, 2019 and 2018, the levels in the fair value hierarchy into which the Company’s financial assets and liabilities are measured and recognized on the Consolidated Statement of Financial Position are categorized as follows: December 31, 2019 December 31, 2018 Recurring measurements Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total $ $ $ $ $ $ $ $ Trade receivables (1) — 20,549 — 20,549 — 19,199 — 19,199 — 20,549 — 20,549 — 19,199 — 19,199 (1) Trade receivables exclude sales and income tax receivables. There were no transfers between Level 1 and Level 2 during the years ended December 31, 2019 and 2018. (d) Financial risk management The Company is exposed to financial risks, including credit risk, liquidity risk, currency risk, interest rate risk and price risk. The aim of the Company’s overall risk management strategy is to reduce the potential adverse effect that these risks may have on the Company’s financial position and results. The Company’s Board of Directors has overall responsibility and oversight of management’s risk management practices. Risk management is carried out under policies approved by the Board of Directors. The Company may from time to time, use foreign exchange contracts and commodity price future and forward contracts to manage its exposure to fluctuations in foreign currency and metals prices. The Company does not ordinarily enter into hedging arrangements to cover long term commodity price risk unless it has the obligation to so under a credit facility, which would be approved of the Board of Directors. i) Market Risk (1) Currency risk Currency risk is the risk that the fair values or future cash flows of the Company’s financial instruments will fluctuate because of changes in foreign exchange rates. The Company and its subsidiaries’ financial instruments are exposed to currency risk where those instruments are denominated in currencies that are not the same as their functional currency; exchange gains and losses in these situations impact net income or loss. The Company’s sales of silver, copper, lead and zinc are denominated in United States dollars and the Company’s costs are incurred in Canadian dollars, United States dollars, Mexican pesos and Peruvian Nuevo Soles. The United States dollar is the functional currency of the Peruvian and Mexican entities. The Canadian dollar is the functional currency of all other entities. The Company also holds cash and cash equivalents, trade and other receivables and accounts payable and other liabilities that are subject to currency risk. The following are the most significant areas of exposure to currency risk: December 31, 2019 CAN dollar Mexican Peruvian Total $ $ $ $ Cash and cash equivalents 113 73 2,473 2,659 Income tax and other receivables 45 13,262 1,683 14,990 158 13,335 4,156 17,649 Accounts payable and other liabilities (724 ) (30,208 ) (15,357 ) (46,289 ) Total (566 ) (16,873 ) (11,201 ) (28,640 ) December 31, 2018 CAN dollar Mexican Peruvian Total $ $ $ $ $ Cash and cash equivalents 183 393 1,064 1,640 Income tax and other receivables 32 8,748 617 9,397 215 9,141 1,681 11,037 Accounts payable and other liabilities (1,268 ) (22,865 ) (19,632 ) (43,765 ) Total (1,053 ) (13,724 ) (17,951 ) (32,728 ) The Company manages and monitors this risk with the objective of mitigating the potential adverse effect that fluctuations in currencies against the Canadian dollar and US dollar could have on the Company’s Consolidated Statement of Financial Position and Consolidated Statement of income (loss). As at December 31, 2019, the Company has not entered into any derivative contracts to mitigate this risk. A 10% appreciation in the US dollar exchange rate against the Peruvian Nuevo Soles and the Mexican Peso based on the financial assets and liabilities held at December 31, 2019, with all the other variables held constant, would have resulted in an increase to the Company’s net income of $2,053 (increase in income in 2018 of $1,992). A 10% appreciation in the Canadian dollar exchange rate against the US dollar based on the financial assets and liabilities held at December 31, 2019 and 2018, with all the other variables held constant, would have resulted in a negligible impact to the Company’s net income (loss). (2) Interest rate risk Interest rate risk is the risk that the fair values or future cash flows of the Company will fluctuate because of changes in market interest rates. The Company is exposed to interest rate risk on its loans payable (note 10). The Company monitors its exposure to interest rates closely and has not entered into any derivative contracts to manage its risk. The weighted average interest rate paid by the Company during the year ended December 31, 2019 on its loans and notes payable in Peru was 5.58% (2018 – 4.26%). With all other variables unchanged a 1% increase in the interest rate would have increased the Company’s net loss by $690 (2018 - $486). (3) Commodity price risk Commodity price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments in the market. As at December 31, 2019 and 2018, the Company had certain amounts related to the sales of concentrates that have only been provisionally priced. Commodity price risk exists solely in Mexico as the Company fixes metal prices with the purchaser of its concentrates for specific sales for which concentrates have been delivered. The Company’s exposure to commodity price risk is as follows: 2019 2018 Commodity $ $ 10% decrease in silver prices (97 ) (27 ) 10% decrease in copper prices (1) — (456 ) 10% decrease in lead prices — (1 ) 10% decrease in gold prices (323 ) (87 ) (1) As at December 31, 2019 and 2018, the Company did not have any forward contracts outstanding. ii) Liquidity risk Liquidity risk is the risk that the Company will not be able to meet its financial obligation as they fall due. The Company has in place planning, budgeting and forecasting process to help determine the funds required to support the Company’s normal operating requirements on an ongoing basis and its expansion and development plans. The Company tries to ensure that it has sufficient committed credit facilities to meet its short-term operating needs, note 10. In the normal course of business, the Company enters into contracts that give rise to commitments for future minimum payments. The following table summarizes the remaining contractual maturities and undiscounted cash flows as at December 31, 2019 of the Company’s financial liabilities and operating and capital commitments: Within 1-2 years 2-5 years After As at 2019 $ $ $ $ $ Accounts payable and accrued liabilities 44,910 — — — 44,910 Loans payable — 18,750 81,064 — 99,814 Interest on loans payable 5,192 4,977 7,429 — 17,598 Other liabilities 7,248 1,554 — — 8,802 Total Commitments 57,350 25,281 88,493 — 171,124 In the opinion of management, the working capital at December 31, 2019, together with future cash flows from operations and available loan facilities, is sufficient to support the Company’s commitments through 2020. iii) Credit risk Credit risk is the risk that the counterparty to a financial instrument might fail to discharge its obligations under the terms of a financial contract. Credit risk is primarily associated with trade receivables; however, it also arises on cash and cash equivalents. The Company sells its concentrate to large international organizations. The Company is exposed to significant concentration of credit risk given that all of its revenues from Peru and Mexico were from two customers at each of the locations. There are no significant provisions recorded for expected credit losses as at December 31, 2019 and 2018. The Company’s policy is to keep its cash and cash equivalents only with highly rated financial institutions and to only invest in government securities. The Company considers the risk of loss associated with cash and cash equivalents to be low. The counterparty to the financial asset is a large international financial institution with strong credit ratings and thus the credit risk is considered to be low. The Company’s maximum exposure to credit risk is as follows: December 31, December 31, 2019 2018 $ $ Cash and cash equivalents 42,980 21,832 Trade receivables 20,549 19,199 63,529 41,031 |
Capital management
Capital management | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of objectives, policies and processes for managing capital [abstract] | |
Capital management | 20 Capital management The Company’s objectives of capital management are to safeguard its ability to support the Company’s normal operating requirements on an ongoing basis; continue the development and exploration of its mining properties and pursue strategic growth initiatives, while minimizing the cost of such capital; and to provide an adequate return to its shareholders. The capital of the Company consists of items included in equity attributable to owners of the Company and debt, net of cash and cash equivalents as follows: December 31, December 31, 2019 2018 $ $ Equity attributable to owners of the Company 176,783 173,355 Loans payable 99,814 56,253 276,597 229,608 Less: Cash and cash equivalents (42,980 ) (21,832 ) 233,617 207,776 In order to facilitate the management of capital requirements, annual budgets are prepared and updated as necessary based on various factors, many of which are beyond the Company’s control. In assessing liquidity, the Company takes into account its expected cash flows from operations, including capital asset expenditures, and its cash and cash equivalents. The Board of Directors reviews the annual and updated budgets. The Company ensures that there are sufficient committed credit facilities to meet its short-term requirements. At December 31, 2019, the Company expects its current capital resources to be sufficient to support its normal operating requirements on an ongoing basis and planned development and explorations programs. At December 31, 2019, the Company was in compliance with the external capital requirements. |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related party transactions [abstract] | |
Related party transactions | 21 Related party transactions (a) Related party transactions During the year ended December 31, 2019, the Company recorded consulting fees of $200 (2018 - $200) to companies related by common directors or officers. At December 31, 2019, accounts payable and accrued liabilities include $Nil (2018 – $Nil) with these related parties. Related party transactions occurred in the normal course of business. As at December 31, 2019, the Company has accounts receivable outstanding from these related parties of $Nil (2018 - $Nil). (b) Compensation of directors and key management personnel The remuneration of the Company’s directors, officers and other key management personnel during the years ended December 31, 2019 and 2018 are as follows: 2019 2018 $ $ Salaries and other short term employment benefits 3,304 2,816 Share-based payments (1) 1,581 1,500 Total compensation 4,885 4,316 (1) calculated at fair value on day of the grant |
Supplemental cash flow informat
Supplemental cash flow information | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Supplemental Cash Flow Information [Abstract] | |
Supplemental cash flow information | 22 Supplemental cash flow information Changes in working capital 2019 2018 $ $ Trade and other receivables (5,885 ) 1,869 Financial and other assets (563 ) (401 ) Income tax receivable (282 ) 78 Inventories (3,849 ) (2,917 ) Accounts payable and accrued liabilities 6,752 4,201 Income tax payable — (311 ) Other liabilities 147 (72 ) (3,680 ) 2,447 |
Revenues from mining operations
Revenues from mining operations | 12 Months Ended |
Dec. 31, 2019 | |
Revenues From Mining Operations [Abstract] | |
Revenues from mining operations | 23 Revenues from mining operations The Company has recognized the following amounts related to revenue in the consolidated statements of income: Year Ended December 31, 2019 Revenues from contracts with customers 228,822 Provisional pricing adjustments on concentrate sales 216 Total revenues 229,038 The following table sets out the disaggregation of revenue by metals and form of sale: Year Ended December 31, 2019 Revenues from contracts with customers: Silver 42,450 Copper 88,128 Lead 28,073 Zinc 58,163 Gold 12,224 Total revenues from contracts with customers 229,038 |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of contingent liabilities [abstract] | |
Contingencies | 24 Contingencies The Company and its subsidiaries have been named as defendants in certain actions incurred in the normal course of business. In all cases the Company and its subsidiaries will continue to vigorously defend the actions and an accrual has been made in the consolidated financial statements for matters that are probable and can be reasonably estimated. The contingencies outstanding associated with our Mexican subsidiaries are as follows: (a) In October 2009, Polo y Ron Minerals, S.A. de C.V. (“P&R”) sued the Company and one of its subsidiaries, Dia Bras Mexicana. P&R claimed damages for the cancellation of an option agreement (the “Option Agreement”) regarding the San Jose properties in Chihuahua, Mexico (the “San Jose Properties”). The Company believes that it has complied with all of its obligations pertaining to the Option Agreement. In October 2011, the 8th Civil Court of the Judicial District of Morelos in Chihuahua issued a resolution that absolved the Company from the claims brought against it by P&R on the basis that P&R did not provide evidence to support any of its claims. P&R appealed this resolution to the State Court, which overruled the previous resolution and ordered the Company to: (i) transfer to P&R 17 mining concessions from the Company’s Bolivar project, including the mining concessions where both mine operations and mineral reserves estimates are located; and (ii) pay $422,674 to P&R. In February 2013, a Federal Court in the State of Chihuahua granted the Company a temporary suspension of the adverse resolution issued by the State Court of Chihuahua, Mexico. On February 12, 2016 The Second Federal Collegiate Court of Civil and Labor Matters, of the Seventeenth circuit in the State of Chihuahua, ("the Federal Court") issued a new judgment ruling that the State Court lacked jurisdiction to rule on issues concerning mining titles, and that no previous rulings by the State Court against the Company shall stand. They ordered the cancellation of the previous adverse resolution by the state Court. This litigation was eventually settled in February 2020, as per note 25(a). (b) In 2009, a personal action was filed in Mexico against DBM by an individual, Ambrosio Bencomo Muñoz as administrator of the intestate succession of Ambrosio Bencomo Casavantes y Jesus Jose Bencomo Muñoz, claiming the annulment and revocation of the purchase agreement of two mining concessions, Bolívar III and IV between Minera Senda de Plata S.A. de C.V. and Ambrosio Bencomo Casavantes, and with this, the nullity of purchase agreement between DBM and Minera Senda de Plata S.A. de C.V. In June 2011, the Sixth Civil Court of Chihuahua, Mexico, ruled that the claim was unfounded and dismissed the case, the plaintiff appealed to the State Court. The process is in the appealing court. The Company will continue to vigorously defend this action and is confident that the claim is of no merit. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of non-adjusting events after reporting period [abstract] | |
Subsequent Events | 25 Subsequent Events (a) Settlement of outstanding P&R litigation On February 6, 2020, the Company settled the outstanding litigation with P&R pertaining to mining concessions from the Company’s Bolivar Mine, including the mining concessions where mine operations and mineral reserve estimates are located. The accord was executed in The Second District Court in the state of Chihuahua, Mexico. This settlement ends all claims against and litigation against the Company and Dia Bras Mexicana. The impact of the settlement amount paid on Sierra Metals’ financial condition and operating results was not significant. (b) Coronavirus (COVID-19) Subsequent to year end, the COVID-19 pandemic began causing significant financial market declines and social dislocation. The situation is dynamic with various cities and countries around the world responding in different ways to address the outbreak. Due to the increasing number of coronavirus (COVID-19) infections in the country, the Peruvian Government declared a state of emergency on March 17, 2020 for a period of 15 days to contain the advancement of the virus, which restricts travel within the country and requires citizens to remain at home with the exception of some essential services. On March 26, the Peruvian Government extended the state of emergency for an additional 13 days until April 12. As such, all mining activities and permitting submissions in Peru have also been halted. This will result in a delay in all permits being issued. Subject to this declaration, the Company has also ceased its mining operations at the Yauricocha Mine except for emergency staff as permitted by the Government. The extent of the effect of the COVID-19 pandemic on the Company’s business activities is uncertain. The Company’s property, plant and equipment and intangible assets with finite lives are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable (assessment for indicators of impairment). Accordingly, as required by IFRS we have not reflected these subsequent conditions in the assessment for indicators of impairment of these assets at December 31, 2019. Impairment indicators for the Company’s assets could exist at March 31, 2020 if current conditions persist. The Company continues to work on revisions to the forecasts and development plans in light of the current conditions and will use these updated assumptions/ forecasts in impairment indicator analysis and for impairment tests, if such tests are required. |
Significant accounting polici_2
Significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Significant Accounting Policies [Abstract] | |
Basis of preparation | (a) Basis of preparation These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and interpretations issued by the International Financial Reporting Interpretations Committee (“IFRIC”). The financial statements were approved by the Board of Directors on March 27, 2020. |
Basis of consolidation | (b) Basis of consolidation These consolidated financial statements include the accounts of the Company and its subsidiaries, which are entities controlled by the Company. Control exists when the Company is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are consolidated from the date that control commences until the date that control ceases. Non-controlling interests represent equity interests in subsidiaries owned by outside parties. Changes in the parent company’s ownership interest in subsidiaries that do not result in a loss of control are accounted for as equity transactions. The principal subsidiaries of the Company and their geographical locations as at December 31, 2019 are as follows: Name of the subsidiary Ownership interest Location Dia Bras EXMIN Resources Inc. 100% Canada Sociedad Minera Corona, S. A. (“Corona”) 1 81.84% Perú Dia Bras Peru, S. A. C. (“Dia Bras Peru”) 1 100% Perú Dia Bras Mexicana, S. A. de C. V. (“Dia Bras Mexicana”) 100% México Servicios de Minería de la Sierra, S. A. de C. V. 100% México Bolívar Administradores, S. A. de C. V. 100% México EXMIN, S. A. de C. V. 100% México Servicios de Produccion Y Extraccion de Chihuahua, S.A. de C.V 100% México Asesores Administrativos Y de Recursos Humanos, S.A. de C.V 100% México 1 |
Foreign currency translation | (c) Foreign currency translation (i) Functional currency Items included in the financial statements of each of the Company’s subsidiaries are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The functional currency of Sierra Metals Inc., the parent entity, is the Canadian dollar (“C$”). The functional currency of the Mexican and Peruvian subsidiaries is the United States dollar. (ii) Presentation currency The presentation currency of the financial statements is United States dollar (“$”). The financial statements of entities that have a functional currency different from the presentation currency are translated into the presentation currency as follows: assets and liabilities – at the closing rate at the date of the statement of financial position, income and expenses – at the average rate of the period (as this is considered a reasonable approximation of the actual rates prevailing at the transaction dates). All resulting differences are recognized in other comprehensive income as cumulative translation adjustments. (iii) Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of foreign currency transactions and from the translation at year end exchange rates of monetary assets and liabilities denominated in currencies other than an entity’s functional currency are recognized in the consolidated statement of loss. |
Cash and cash equivalents | (d) Cash and cash equivalents Cash and cash equivalents include cash on hand, deposits held with banks, and other short-term highly liquid investments with original maturities of three months or less. |
Financial Instruments | (e) Financial Instruments The Company’s financial assets and liabilities (financial instruments) include cash and cash equivalents, trade receivables, accounts payable and accrued liabilities and long-term debt. The Company recognizes financial assets and financial liabilities on the date the Company becomes a party to the contractual provisions of the instruments. A financial asset is derecognized either when the Company has transferred substantially all the risks and rewards of ownership of the financial asset or when cash flows expire. A financial liability is derecognized when the obligation specified in the contract is discharged, canceled or expired. Financial Assets Cash and cash equivalents are recorded at amortized cost using the effective interest method. Trade and other receivables are classified as financial assets at fair value through profit or loss and measured at fair value. Financial Liabilities Financial liabilities, including accounts payable and accrued liabilities, as well as debt and financing obligations are accounted for at amortized cost. |
Segment reporting | (f) Segment reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker is responsible for allocating resources and assessing performance of the operating segments and has been identified as the President and Chief Executive Officer of the Company. |
Inventories | (g) Inventories Inventories consist of concentrates, ore stockpiles, supplies and spare parts. Concentrates include stockpiled concentrates at milling operations or at warehouses. Stockpiled ore is comprised of in-process mineralized material awaiting processing at milling facilities and materials for use in milling operations. Concentrates and stockpiled ore are valued at the lower of average production cost and net realizable value (“NRV”). Concentrates and stockpiled ore inventory costs include all direct costs incurred in production including direct labor and materials, freight and amortization, and directly attributable overhead costs. NRV is calculated as the estimated price at the time of sale based on prevailing metal market prices less estimated future costs to convert the inventories into saleable form and estimated costs to sell. The supplies and spare parts inventories will be used for exploration and production and are valued at the lower of average cost and net realizable value. Cost includes acquisition, freight and other directly attributable costs. If the carrying value of inventory exceeds NRV, a write-down is recognized as production costs of sales in the consolidated statement of income (loss). If there is a subsequent increase in the value of the inventory, the previous write-downs to NRV are reversed up to cost to the extent that the related inventory has not been sold. |
Exploration and evaluation expenditure | (h) Exploration and evaluation expenditure Exploration and evaluation expenditures are comprised of costs that are directly attributable to: · Researching and analysing existing exploration data; · Conducting geological studies, exploratory drilling and sampling; · Examining and testing extraction and treatment methods; and /or · Compiling pre-feasibility and feasibility studies Exploration expenditures are costs incurred in the search for resources suitable for commercial exploitation. Evaluation expenditures are costs incurred in determining the technical feasibility and commercial viability of a mineral resource. Exploration and evaluation expenditures are capitalized when there is a high degree of confidence in the project’s viability and thus it is probable that future economic benefits will flow to the Company. Any items of property, plant and equipment used for exploration and evaluation are capitalised within property, plant and equipment. Capitalized exploration and evaluation expenditures are considered to be tangible assets as they form part of the underlying mineral property and are recorded within property, plant and equipment - exploration and evaluation expenditures. |
Property, plant and equipment | (i) Property, plant and equipment Property, plant and equipment is stated at cost, less accumulated depreciation and impairment losses. The cost of an item of property, plant and equipment comprises its purchase price, any costs directly attributable to bringing the assets to the location and condition necessary for it to be capable of operating in the manner intended by management and the estimated close down and restoration costs associated with the asset, and for qualifying assets, the associated borrowing costs. Once a mining project has been established as commercially viable, expenditure other than on land, buildings, plant and equipment is capitalized under ‘Mining properties’ together with any amount capitalized relating to that mining project from ‘Exploration and evaluation’. Where an item of property, plant and equipment is comprised of major components with different useful lives, the components are accounted for as separate items of property, plant and equipment and depreciated over their estimated useful lives. Costs associated with commissioning new assets, in the period before they are capable of operating in the manner intended by management, are capitalized. Revenue generated during the development stage from the sale of concentrate and related costs can be deducted from capitalized costs only if the production of the saleable material is directly attributable to bringing the asset to the condition necessary for it to be capable of operating in the manner intended by management. Development costs incurred after the commencement of production are capitalised to the extent they are expected to give rise to future economic benefits and these costs can be measured reliably. Repairs and maintenance costs are charged to the consolidated statement of income (loss) during the period in which they are incurred. Property, plant and equipment is depreciated over its useful life, or over the remaining life of the mine if shorter. Depreciation commences when the asset is available for use. Land is not depreciated. The major categories of property, plant and equipment are depreciated on a straight-line basis using the following average estimated useful lives below: Asset class Useful lives (years) Vehicle, furniture and other assets 3 to 10 Machinery and equipment 5 to 20 Buildings and other constructions 5 to 50 Mining properties are depleted over the life of the mine using the units of production method. In applying the units of production method, depletion is normally calculated using the quantity of material to be extracted in current and future periods based on proven and probable reserves or measured and indicated resources. Such non-reserve material may be included in depletion calculations in limited circumstances and where there is a high degree of confidence in its economic extraction. The Company conducts an annual review of residual values, useful lives, depletion and depreciation methods used for property, plant and equipment. Changes to estimated residual values or useful lives are accounted for prospectively. |
Impairment of non-financial assets | (j) Impairment of non-financial assets Property, plant and equipment and intangible assets with finite lives are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Impairment is assessed at the level of cash generating units (‘CGUs’). The recoverable amount is the higher of an asset’s fair value less costs to sell or value in use. Fair value less costs to sell is determined as the amount that would be obtained from the sale of the asset in an arm’s length transaction. The best evidence of fair value is the value obtained from an active market or binding sales agreement. Where this information is not available, fair value can be estimated as the present value of future cash flows expected to be realized from the continued use of the asset including expansion projects. Value in use is determined as the present value of expected future cash flows to be realized from the continued use of the asset in its present condition and from its ultimate disposal. Capitalized exploration expenditures are reviewed for indicators of impairment, which included a decision to discontinue activities in a specific area and the existence of sufficient data indicating that the carrying amount of an exploration and evaluation asset is unlikely to be recovered from the development or sale of the asset. Non-financial assets that have suffered impairment are tested for possible reversal of the impairment whenever events or changes in circumstances indicate that the impairment may have reversed. |
Borrowing costs | (k) Borrowing costs Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets are capitalized and included in the carrying amounts of those assets until they are ready for their intended use. All other borrowing costs are recognized as an expense in the period incurred. |
Revenue recognition | (l) Revenue recognition Revenues include sales of metal concentrates net of treatment and refining charges. The Company sells concentrate from certain of its mines to third-party smelter customers. These concentrates predominantly contain zinc, lead, and copper, along with quantities of gold and silver. The Company recognizes revenue from these concentrate sales when control of the concentrate has transferred to the customer, which is the point in time that the concentrate is delivered to the customer. Upon delivery, the customer has legal right to, physical possession of, and the risks and rewards of ownership of the concentrate. The customer is also committed to accept and pay for the concentrates once delivered; therefore, the customer is able to direct the use of and obtain substantially all of the remaining benefits from the concentrate. The final prices for metals contained in the concentrate are generally determined based on the prevailing spot market metal prices on a specific future date, which is established on a date prior to the concentrate being delivered to the customer. Upon transfer of control at delivery, the Company measures revenue under these contracts based on forward prices agreed upon with the customer at the time of delivery and the most recent determination of the quantity of contained metals less smelting and refining charges charged by the customer. This reflects the best estimate of the transaction price expected to be received at final settlement. The variability associated with the embedded derivative for changes in the metal prices is recognized at fair value. These changes in the fair value of the receivable are adjusted through revenue from other sources at each subsequent financial statement date. |
Share capital | (m) Share capital Common shares are classified as equity. Incremental costs directly attributable to the issuance of the shares are recognized as a deduction from equity. |
Share-based payments | (n) Share-based payments The fair value of the estimated number of stock options and restricted share units (“RSUs”) awarded to employees, officers and directors that will eventually vest, determined as of the date of grant, is recognized as share-based compensation expense over the vesting period of the stock options and RSUs, with a corresponding increase to equity. The fair value of each tranche is determined using the Black-Scholes option pricing model with market related inputs as of the date of grant. The fair value of RSUs is the market value of the underlying shares as of the date of grant. The number of awards expected to vest is reviewed at least annually, with any change in the estimate recognized immediately in share-based payments expense with a corresponding adjustment to equity. |
Share repurchases | (o) Share repurchases The Company deducts from contributed surplus any excess of consideration paid over book value where the Company has repurchased any of its own common shares. Book value is calculated as the weighted average price of the shares issued and outstanding prior to the cancellation date. |
Earnings (loss) per share | (p) Earnings (loss) per share Basic earnings (loss) per share (“EPS”) is calculated by dividing the net income (loss) for the period attributable to the shareholders of the Company by the weighted average number of common shares outstanding during the period. Diluted EPS is calculated by adjusting the weighted average number of common shares outstanding for dilutive instruments. The number of shares included with respect to options, warrants and similar instruments is computed using the treasury stock method. The Company’s potentially dilutive common shares comprise stock options and RSUs granted to employees. In periods of loss, basic and diluted EPS are the same, as the effect of dilutive instruments is anti-dilutive. |
Income taxes | (q) Income taxes Tax expense comprises current and deferred income and resource taxes. Current income, deferred income and resources taxes are recognized in profit or loss except to the extent that it relates to a business combination, or items recognized directly in equity or in other comprehensive income. Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognized for the following temporary differences: the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss, and differences relating to investments in subsidiaries and jointly controlled entities to the extent that the parent is able to control the timing of the reversal of the temporary difference and it is probable that they will not reverse in the foreseeable future. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realized simultaneously. A deferred tax asset is recognized for unused tax losses, tax credits and deductible temporary differences, to the extent that it is probable that future taxable profits will be available against which they can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized. |
Decommissioning and restoration liabilities | (r) Decommissioning and restoration liabilities Decommissioning and restoration costs include the dismantling and demolition of infrastructure, the removal of residual materials and the remediation of disturbed areas. These costs are a normal consequence of mining activity and the majority of these expenditures are expected to be incurred at the end of the life of mine. Estimated decommissioning and restoration costs are provided in the accounting period when the obligation arising from the related disturbance occurs, based on the net present value of the estimated future costs discounted using the credit adjusted risk free rate. This provision is adjusted in each reporting period to reflect known developments, e.g. revisions to costs estimates and the timing of cash outflows. The initial decommissioning and restoration provision together with other movements resulting from changes in estimated cash flows or the credit adjusted risk free rates is capitalized within property, plant and equipment and amortized over the life of the asset to which it relates except where it relates to a closed mine where the expenses are recognized in the statement of loss. Provision is made for the estimated present value of costs of environmental clean-up obligations outstanding as at the date of the statement of financial position, and these costs are charged to the income statement as an operating cost. The amortization or unwinding of the discount applied in establishing the net present value of provision is accreted to the income statement in each accounting period with each interest charge included as a financing cost rather than as an operating cost. |
Significant accounting polici_3
Significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Significant Accounting Policies [Abstract] | |
Schedule of subsidiaries of the company and their geographical locations | The principal subsidiaries of the Company and their geographical locations as at December 31, 2019 are as follows: Name of the subsidiary Ownership interest Location Dia Bras EXMIN Resources Inc. 100% Canada Sociedad Minera Corona, S. A. (“Corona”) 1 81.84% Perú Dia Bras Peru, S. A. C. (“Dia Bras Peru”) 1 100% Perú Dia Bras Mexicana, S. A. de C. V. (“Dia Bras Mexicana”) 100% México Servicios de Minería de la Sierra, S. A. de C. V. 100% México Bolívar Administradores, S. A. de C. V. 100% México EXMIN, S. A. de C. V. 100% México Servicios de Produccion Y Extraccion de Chihuahua, S.A. de C.V 100% México Asesores Administrativos Y de Recursos Humanos, S.A. de C.V 100% México 1 |
Schedule of average estimated useful lives of property, plant and equipment | The major categories of property, plant and equipment are depreciated on a straight-line basis using the following average estimated useful lives below: Asset class Useful lives (years) Vehicle, furniture and other assets 3 to 10 Machinery and equipment 5 to 20 Buildings and other constructions 5 to 50 |
Trade and other receivables (Ta
Trade and other receivables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Trade and other receivables [abstract] | |
Schedule of trade and other receivables | December 31, December 31, 2019 2018 $ $ Trade receivables 20,549 19,199 Sales tax receivables 11,343 6,718 Other receivables — 90 31,892 26,007 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventories [Abstract] | |
Schedule of inventories | December 31, December 31, 2019 2018 $ $ Stockpiles 4,096 1,074 Concentrates 4,376 4,476 Supplies and spare parts 17,581 16,436 26,053 21,986 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Schedule of property, plant and equipment | Cost Plant and Mining Assets under Exploration Total $ Balance as of January 1, 2018 223,229 432,162 33,853 51,315 740,559 Additions 10,143 4,648 20,781 13,209 48,781 Change in estimate of decomissioning liability 512 — — — 512 Disposals (1,115 ) — — — (1,115 ) Transfers 7,152 — (7,152 ) — — Balance as of December 31, 2018 239,921 436,810 47,482 64,524 788,737 Additions 14,455 6,249 26,046 8,751 55,501 Change in estimate of decomissioning liability 3,713 — — — 3,713 Disposals (11,768 ) — (28 ) — (11,796 ) Transfers 23,348 4,016 (23,348 ) (4,016 ) — Balance as of December 31, 2019 269,669 447,075 50,152 69,259 836,155 Accumulated depreciation Plant and Mining Assets under Exploration Total $ Balance as of January 1, 2018 142,105 319,173 — 13,041 474,319 Depletion, depreciation and amortization 14,562 16,787 — — 31,349 Disposals (444 ) — — — (444 ) Balance as of December 31, 2018 156,223 335,960 — 13,041 505,224 Depletion, depreciation and amortization 21,447 15,093 — — 36,540 Disposals (10,724 ) — — — (10,724 ) Balance as of December 31, 2019 166,946 351,053 — 13,041 531,040 Net Book Value - December 31, 2019 102,723 96,022 50,152 56,218 305,115 Net Book Value - December 31, 2018 83,698 100,850 47,482 51,483 283,513 |
Accounts payable and accrued _2
Accounts payable and accrued liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Trade and other current payables [abstract] | |
Schedule of accounts payable and accrued liabilities | December 31, December 31, 2019 2018 $ $ Trade payables 30,422 24,662 Other payables and accrued liabilities 14,488 11,429 44,910 36,091 |
Current and deferred income t_2
Current and deferred income tax liability (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Current And Deferred Income Tax Liability [Abstract] | |
Schedule of income and resource taxes | 2019 2018 $ $ Current Tax Expense Current income tax 17,416 25,432 17,416 25,432 Deferred Tax Recovery Deferred tax expense (recovery) (4,888 ) 908 (4,888 ) 908 Total tax expense 12,528 10,348 |
Schedule of reconciliation between income tax expense and the product of loss | A reconciliation between income tax expense and the product of loss before income taxes multiplied by the combined Canadian federal and provincial income tax rate for the period ended December 31 is as follows: 2019 2018 $ $ Income before income taxes 21,945 52,180 Expected Tax Rate 26.50% (2018 - 26.50%) 5,776 13,828 Effect of tax rate differences 567 1,672 Stock based compensation costs 291 395 Other non-deductible expenses 616 84 Unrealized foreign exchange income 412 347 Inflation adjustment for Mexico tax purposes (224 ) (321 ) Expired losses 720 381 Change in benefit of other temporary differences not recognized 1,925 572 Foreign exchange and other (1,391 ) 2,555 Mining royalties and other 3,836 6,827 12,528 26,340 |
Schedule of temporary differences and components and movements of net deferred tax assets and liabilities | The significant components and movements of the Company’s net deferred tax assets and liabilities are as follows: Balance Balance Balance January 1, Change in December 31, Change in December 31, $ $ $ $ $ Property, Plant, and equipment (1,796 ) 130 (1,666 ) 850 (816 ) Inventory (1,462 ) (636 ) (2,098 ) 920 (1,178 ) Provisions 667 2,089 2,756 970 3,726 Decommissioning liabilities 3,928 (24 ) 3,904 1,098 5,002 Mining royalties 1,241 223 1,464 151 1,615 Mining assets (42,041 ) 76 (41,965 ) (589 ) (42,554 ) Deferred revenue — — — — — Other items 1,532 (1,216 ) 316 1,982 2,298 Non-capital losses 8,048 (1,496 ) 6,552 (266 ) 6,286 (29,883 ) (854 ) (30,737 ) 5,116 (25,621 ) Deferred tax assets have not been recognized in respect of the following temporary differences: 2019 2018 $ $ Non-capital and capital losses 46,364 37,696 Property, plant and equipment 49 9 Mineral properties 2,236 2,128 Other (56 ) (53 ) 48,593 39,780 |
Loans payable and notes payab_2
Loans payable and notes payable (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of detailed information about borrowings [abstract] | |
Schedule of loans payable | December 31, December 31, 2019 2018 $ $ Current Acquisition loan with Banco de Credito del Peru (a) — 6,188 Revolving credit facility with Banco de Credito del Peru (b) — 15,000 Notes payable to BBVA Banco Continental (c) — 5,000 Loan with FIFOMI (d) — 1,530 — 27,718 Non-current Acquisition loan with Banco de Credito del Peru (a) — 28,408 Senior Secured Corporate Credit Facility with Banco de Credito del Peru (e) 99,814 — Loan with FIFOMI (d) — 127 99,814 28,535 Total loans payable 99,814 56,253 |
Decommissioning liability (Tabl
Decommissioning liability (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of other provisions [abstract] | |
Schedule of decommissioning liability | December 31, December 31, 2019 2018 $ $ Balance, beginning of year 13,304 13,271 Liabilities settled during the year (914 ) (1,293 ) Interest cost 647 684 Revisions and new estimated cash flows (1) 3,857 642 Balance, end of year 16,894 13,304 Less: current portion (865 ) (2,038 ) Long-term decommissioning liability 16,029 11,266 (1) Revision to decommissioning liability includes mainly $3.9 million of increase in asset retirement obligation at Yauricocha resulting from a revised mine-closure plan that includes activities related to the expanded tailings disposition facility. |
Schedule of key assumptions of calculation of decommissioning liability | During 2019 and 2018, the decommissioning liability was calculated based on the following key assumptions: 2019 2018 Mexico Peru Mexico Peru Estimated undiscounted cash flows ($) 949 20,249 965 15,580 Discount rate (%) 7.0 5.0 10.0 7.0 Settlement period (years) 4 4-15 6 5-11 Inflation (%) 4.0 2.0 4.0 2.5 |
Other liabilities (Tables)
Other liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Other Liabilities Abstract | |
Schedule of other liabilities | December 31, December 31, 2019 2018 $ $ Current Profit-sharing and other employee related obligations (a) 7,248 8,908 Non-current Other employee related obligations 1,297 1,081 Lease liabilities 257 — 1,554 1,081 |
Share capital and share-based_2
Share capital and share-based payments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of terms and conditions of share-based payment arrangement [abstract] | |
Schedule of changes in RSU's issued | The changes in RSU’s issued during the years ended December 31, 2019 and 2018 was as follows: December 31, December 31, 2019 2018 $ $ Outstanding, beginning of period 1,380,085 1,316,314 Granted 1,356,418 679,627 Exercised (700,698 ) (614,572 ) Forfeited (405,382 ) (1,284 ) Outstanding, end of period 1,630,423 1,380,085 |
Non-controlling interest (Table
Non-controlling interest (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Non Controlling Interest [Abstract] | |
Schedule of non-controlling interest | Set out below is the summarized financial information of our subsidiary Corona which has a material non-controlling interest (note 2(b)). The information below is before intercompany eliminations and after fair value adjustments on acquisition of the entity. Summarized balance sheet December 31, December 31, 2019 2018 $ $ Current Assets 90,438 78,207 Liabilities (27,863 ) (36,622 ) Total current net assets 62,575 41,585 Non-current Assets 171,884 162,733 Liabilities (39,915 ) (37,519 ) Total non-current net assets 131,969 125,214 Net assets 194,544 166,799 Summarized income statement For the year ended December 31, 2019 2018 $ $ Revenue 155,983 168,657 Income before income tax 41,796 62,735 Income tax expense (14,338 ) (24,047 ) Total income 27,458 38,688 Total income attributable to non-controlling interests 4,986 7,026 Dividends paid to non-controlling interests — (2,883 ) Summarized cash flows For the year ended December 31, 2019 2018 $ $ Cash flows from operating activities Cash generated from operating activities 63,887 83,178 Net changes in non cash working capital items (2,895 ) 875 Decomissioning liabilities settled (915 ) (1,293 ) Income taxes paid (21,885 ) (29,529 ) Net income 38,192 53,231 Net cash used in investing activities (25,882 ) (25,243 ) Net cash from/(used in) financing activities 4,775 (29,963 ) Effect of foreign exchange rate changes on cash and cash equivalents 21 (35 ) Increase (decrease) in cash and cash equivalents 17,106 (2,010 ) Cash and cash equivalents, beginning of period 17,898 19,908 Cash and cash equivalents, end of period 35,004 17,898 |
Expenses by nature (Tables)
Expenses by nature (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Expenses by nature [abstract] | |
Schedule of mining cost | Year ended December 31, 2019 2018 $ $ Employee compensation and benefits 28,986 27,458 Third party and contractors costs 60,905 46,599 Depreciation 36,084 31,409 Consumables 39,515 34,655 Changes in inventory and other 5,786 6,468 171,276 146,589 |
Schedule of general and administrative expenses | Year ended December 31, 2019 2018 $ $ Salaries and benefits 9,763 7,333 Consulting and professional fees 2,705 3,987 Office expenses 1,539 1,507 Marketing and communication expenses 807 805 Share based compensation expense 1,174 1,542 Listing and filing fees 318 344 Director expenses 1,282 1,312 Travelling expense 596 627 Other 1,331 1,462 19,515 18,919 |
Other income (expenses) (Tables
Other income (expenses) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Other Income Expenses [Abstract] | |
Schedule of other income (expenses) | 2019 2018 $ $ Gain/(loss) on sale of supplies and fixed assets (162 ) 85 Interest income 203 36 Allowance for inventory obsolescence (238 ) (1,739 ) Miscellaneous income (expenses) (310 ) 330 (507 ) (1,288 ) |
Interest expense and other fi_2
Interest expense and other finance costs (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Interest Expense And Other Finance Costs [Abstract] | |
Schedule of interest expense and other finance costs | 2019 2018 $ $ Interest expense on loans 4,431 2,913 Amortization of loan transaction costs — 37 Interest cost on decommissioning liability 647 684 5,078 3,634 |
Segment reporting (Tables)
Segment reporting (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of operating segments [abstract] | |
Schedule of summary of the reported amounts of net income (loss) and the carrying amounts of assets and liabilities | The following is a summary of the reported amounts of net income (loss) and the carrying amounts of assets and liabilities by operating segment: Peru Mexico Mexico Canada Yauricocha Mine Bolivar Mine Cusi Mine Corporate Total Year ended December 31, 2019 $ $ $ $ $ Revenue (1) 155,983 60,402 12,653 — 229,038 Production cost of sales (79,339 ) (45,491 ) (10,362 ) — (135,192 ) Depletion of mineral property (10,631 ) (2,177 ) (2,314 ) — (15,122 ) Depreciation and amortization of property, plant and equipment (10,346 ) (8,147 ) (2,469 ) — (20,962 ) Cost of sales (100,316 ) (55,815 ) (15,145 ) — (171,276 ) Gross profit from mining operations 55,667 4,587 (2,492 ) — 57,762 Income (loss) from operations 39,879 (4,918 ) (1,079 ) (5,376 ) 28,506 Interest expense and other finance costs (4,624 ) (34 ) (8 ) (412 ) (5,078 ) Other income (expense) (637 ) 105 25 (507 ) Foreign currency exchange loss (170 ) (21 ) (5 ) (780 ) (976 ) Income (loss) before income tax 34,448 (4,868 ) (1,067 ) (6,568 ) 21,945 Income tax expense (14,297 ) 1,450 319 — (12,528 ) Net income (loss) from operations 20,151 (3,418 ) (748 ) (6,568 ) 9,417 December 31, 2019 Peru Mexico Canada Total $ $ $ $ Total assets 241,839 162,657 6,951 411,447 Non-current assets 175,244 131,810 91 307,147 Total liabilities 137,146 31,130 31,152 199,428 (1) Includes provisional pricing adjustments of: $216 for Bolivar Per u Mexico Mexico Canada Yauricocha Mine Bolivar Mine Cusi Mine Corporate Total Year ended December 31, 2018 $ $ $ $ $ Revenue (1) 168,657 52,451 11,263 — 232,371 Production cost of sales (74,731 ) (33,168 ) (7,281 ) — (115,180 ) Depletion of mineral property (13,229 ) (2,918 ) (640 ) — (16,787 ) Depreciation and amortization of property, plant and equipment (4,626 ) (8,197 ) (1,799 ) — (14,622 ) Cost of sales (92,586 ) (44,283 ) (9,720 ) — (146,589 ) Gross profit from mining operations 76,071 8,168 1,543 — 85,782 Income (loss) from operations 60,640 1,836 919 (5,083 ) 58,312 Interest expense and other finance costs (2,637 ) — (997 ) — (3,634 ) Other income (expense) 1,029 (1,967 ) (347 ) (3 ) (1,288 ) Foreign currency exchange loss (26 ) (1,694 ) (299 ) 809 (1,210 ) Income (loss) before income tax 59,006 (1,825 ) (724 ) (4,277 ) 52,180 Income tax expense (24,068 ) (1,768 ) (504 ) — (26,340 ) Net income (loss) from operations 34,938 (3,593 ) (1,228 ) (4,277 ) 25,840 December 31, 2018 Peru Mexico Canada $ $ $ $ Total assets 209,159 145,775 1,507 356,441 Non-current assets 163,222 121,654 67 284,943 Total liabilities 124,020 27,607 1,209 152,836 (1) Includes provisional pricing adjustments of: $1,289 for Yauricocha, $(190) for Bolivar, and $(45) for Cusi. |
Financial instruments and fin_2
Financial instruments and financial risk management (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of detailed information about financial instruments [line items] | |
Schedule of financial assets and liabilities by category | At December 31, 2019 Amortized FVTPL Total $ $ $ Financial assets Cash and cash equivalents 42,980 — 42,980 Trade receivables (1) — 20,549 20,549 Total Financial assets 42,980 20,549 63,529 Financial liabilities Accounts payable 30,422 — 30,422 Loans payable 99,814 — 99,814 Total Financial liabilities 130,236 — 130,236 At December 31, 2018 Loans and FVTPL Total $ $ $ Financial assets Cash and cash equivalents 21,832 — 21,832 Trade receivables (1) 19,199 19,199 Financial assets — — — Total Financial assets 21,832 19,199 41,031 Financial liabilities Accounts payable 24,662 — 24,662 Loans payable 56,253 — 56,253 Total Financial liabilities 80,915 — 80,915 (1) Trade receivables exclude sales and income tax receivables. |
Schedule of fair value measurements of assets | At December 31, 2019 and 2018, the levels in the fair value hierarchy into which the Company’s financial assets and liabilities are measured and recognized on the Consolidated Statement of Financial Position are categorized as follows: December 31, 2019 December 31, 2018 Recurring measurements Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total $ $ $ $ $ $ $ $ Trade receivables (1) — 20,549 — 20,549 — 19,199 — 19,199 — 20,549 — 20,549 — 19,199 — 19,199 (1) Trade receivables exclude sales and income tax receivables. |
Currency risk | |
Disclosure of detailed information about financial instruments [line items] | |
Schedule of exposure to risks | The following are the most significant areas of exposure to currency risk: December 31, 2019 CAN dollar Mexican Peruvian Total $ $ $ $ Cash and cash equivalents 113 73 2,473 2,659 Income tax and other receivables 45 13,262 1,683 14,990 158 13,335 4,156 17,649 Accounts payable and other liabilities (724 ) (30,208 ) (15,357 ) (46,289 ) Total (566 ) (16,873 ) (11,201 ) (28,640 ) December 31, 2018 CAN dollar Mexican Peruvian Total $ $ $ $ $ Cash and cash equivalents 183 393 1,064 1,640 Income tax and other receivables 32 8,748 617 9,397 215 9,141 1,681 11,037 Accounts payable and other liabilities (1,268 ) (22,865 ) (19,632 ) (43,765 ) Total (1,053 ) (13,724 ) (17,951 ) (32,728 ) |
Credit risk | |
Disclosure of detailed information about financial instruments [line items] | |
Schedule of exposure to risks | The Company’s maximum exposure to credit risk is as follows: December 31, December 31, 2019 2018 $ $ Cash and cash equivalents 42,980 21,832 Trade receivables 20,549 19,199 63,529 41,031 |
Commodity price risk | |
Disclosure of detailed information about financial instruments [line items] | |
Schedule of exposure to risks | The Company’s exposure to commodity price risk is as follows: 2019 2018 Commodity $ $ 10% decrease in silver prices (97 ) (27 ) 10% decrease in copper prices (1) — (456 ) 10% decrease in lead prices — (1 ) 10% decrease in gold prices (323 ) (87 ) (1) |
Liquidity risk | |
Disclosure of detailed information about financial instruments [line items] | |
Schedule of remaining contractual maturities and undiscounted cash flows | The following table summarizes the remaining contractual maturities and undiscounted cash flows as at December 31, 2019 of the Company’s financial liabilities and operating and capital commitments: Within 1-2 years 2-5 years After As at 2019 $ $ $ $ $ Accounts payable and accrued liabilities 44,910 — — — 44,910 Loans payable — 18,750 81,064 — 99,814 Interest on loans payable 5,192 4,977 7,429 — 17,598 Other liabilities 7,248 1,554 — — 8,802 Total Commitments 57,350 25,281 88,493 — 171,124 |
Capital management (Tables)
Capital management (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of objectives, policies and processes for managing capital [abstract] | |
Schedule of capital of the Company | The capital of the Company consists of items included in equity attributable to owners of the Company and debt, net of cash and cash equivalents as follows: December 31, December 31, 2019 2018 $ $ Equity attributable to owners of the Company 176,783 173,355 Loans payable 99,814 56,253 276,597 229,608 Less: Cash and cash equivalents (42,980 ) (21,832 ) 233,617 207,776 |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related party transactions [abstract] | |
Schedule of remuneration to directors and key management personnel | The remuneration of the Company’s directors, officers and other key management personnel during the years ended December 31, 2019 and 2018 are as follows: 2019 2018 $ $ Salaries and other short term employment benefits 3,304 2,816 Share-based payments (1) 1,581 1,500 Total compensation 4,885 4,316 (1) calculated at fair value on day of the grant |
Supplemental cash flow inform_2
Supplemental cash flow information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Supplemental Cash Flow Information [Abstract] | |
Supplemental cash flow information | 2019 2018 $ $ Trade and other receivables (5,885 ) 1,869 Financial and other assets (563 ) (401 ) Income tax receivable (282 ) 78 Inventories (3,849 ) (2,917 ) Accounts payable and accrued liabilities 6,752 4,201 Income tax payable — (311 ) Other liabilities 147 (72 ) (3,680 ) 2,447 |
Revenues from mining operatio_2
Revenues from mining operations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenues From Mining Operations [Abstract] | |
Schedule of revenue in consolidated statements of income | The Company has recognized the following amounts related to revenue in the consolidated statements of income: Year Ended December 31, 2019 Revenues from contracts with customers 228,822 Provisional pricing adjustments on concentrate sales 216 Total revenues 229,038 |
Schedule of disaggregation of revenue | The following table sets out the disaggregation of revenue by metals and form of sale: Year Ended December 31, 2019 Revenues from contracts with customers: Silver 42,450 Copper 88,128 Lead 28,073 Zinc 58,163 Gold 12,224 Total revenues from contracts with customers 229,038 |
Description of business and n_2
Description of business and nature of operations (Detail Textuals) | 12 Months Ended |
Dec. 31, 2019 | |
Yauricocha Mine | |
Description Of Business And Nature Of Operations Disclosure [Line Items] | |
Percentage of owned interest | 81.84% |
Bolivar | |
Description Of Business And Nature Of Operations Disclosure [Line Items] | |
Percentage of owned interest | 100.00% |
Cusi Mines | |
Description Of Business And Nature Of Operations Disclosure [Line Items] | |
Percentage of owned interest | 100.00% |
Significant accounting polici_4
Significant accounting policies (Details) | 12 Months Ended | |
Dec. 31, 2019 | ||
Dia Bras EXMIN Resources Inc. | ||
Disclosure of subsidiaries [line items] | ||
Ownership interest | 100.00% | |
Location | Canada | |
Sociedad Minera Corona, S. A. ("Corona") | ||
Disclosure of subsidiaries [line items] | ||
Ownership interest | 81.84% | [1] |
Location | Peru | [1] |
Dia Bras Peru S. A. C. ("Dia Bras Peru") | ||
Disclosure of subsidiaries [line items] | ||
Ownership interest | 100.00% | [1] |
Location | Peru | [1] |
Dia Bras Mexicana S. A. de C. V. ("Dia Bras Mexicana") | ||
Disclosure of subsidiaries [line items] | ||
Ownership interest | 100.00% | |
Location | Mexico | |
Servicios de Mineria de la Sierra, S. A. de C. V. | ||
Disclosure of subsidiaries [line items] | ||
Ownership interest | 100.00% | |
Location | Mexico | |
Bolivar Administradores, S. A. de C. V. | ||
Disclosure of subsidiaries [line items] | ||
Ownership interest | 100.00% | |
Location | Mexico | |
EXMIN, S. A. de C. V. | ||
Disclosure of subsidiaries [line items] | ||
Ownership interest | 100.00% | |
Location | Mexico | |
Servicios de Produccion Y Extraccion de Chihuahua, S.A. de C.V | ||
Disclosure of subsidiaries [line items] | ||
Ownership interest | 100.00% | |
Location | Mexico | |
Asesores Administrativos Y de Recursos Humanos, S.A. de C.V | ||
Disclosure of subsidiaries [line items] | ||
Ownership interest | 100.00% | |
Location | Mexico | |
[1] | The Company, through its wholly owned subsidiary Dia Bras Peru, holds an 81.84% interest in Corona, which represents 92.33% of the voting shares. The Company consolidates Corona's financial results and records a non-controlling interest for the 18.16% that it does not own. |
Significant accounting polici_5
Significant accounting policies (Details 1) | 12 Months Ended |
Dec. 31, 2019 | |
Vehicles, furniture and other assets | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 3 to 10 years |
Machinery and equipment | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 5 to 20 years |
Bulidings and other constructions | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 5 to 50 years |
Significant accounting polici_6
Significant accounting policies (Detail Textuals) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of subsidiaries [line items] | |
Depreciation method | straight-line basis |
Corona | |
Disclosure of subsidiaries [line items] | |
Ownership interest through Dia Bras Peru | 81.84% |
Percentage of voting shares in subsidiary | 92.33% |
Trade and other receivables (De
Trade and other receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Trade and other receivables [abstract] | |||
Trade receivables | [1] | $ 20,549 | $ 19,199 |
Sales tax receivables | 11,343 | 6,718 | |
Other receivables | 90 | ||
Total | $ 31,892 | $ 26,007 | |
[1] | Trade receivables exclude sales and income tax receivables. |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Inventories [Abstract] | ||
Stockpiles | $ 4,096 | $ 1,074 |
Concentrates | 4,376 | 4,476 |
Supplies and spare parts | 17,581 | 16,436 |
Total | $ 26,053 | $ 21,986 |
Inventories (Detail Textuals)
Inventories (Detail Textuals) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Inventories Line Items [Line Items] | ||
Cost of inventories recognised as expense | $ 171,276 | $ 146,589 |
Provision for inventory write off | 3,632 | 3,331 |
Inventory write-down | 804 | 1,110 |
Stockpile and concentrate | ||
Inventories Line Items [Line Items] | ||
Inventories, at net realisable value | $ 468 | $ 168 |
Property, plant and equipment_2
Property, plant and equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance | $ 283,513 | |
Balance | 305,115 | $ 283,513 |
Gross carrying amount | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance | 788,737 | 740,559 |
Additions | 55,501 | 48,781 |
Change in estimate of decomissioning liability | 3,713 | 512 |
Disposals | (11,796) | (1,115) |
Transfers | ||
Balance | 836,155 | 788,737 |
Accumulated depreciation, amortisation | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance | 505,224 | 474,319 |
Depletion, depreciation and amortization | 36,540 | 31,349 |
Disposals | (10,724) | (444) |
Balance | 531,040 | 505,224 |
Plant and equipment | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance | 83,698 | |
Balance | 102,723 | 83,698 |
Plant and equipment | Gross carrying amount | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance | 239,921 | 223,229 |
Additions | 14,455 | 10,143 |
Change in estimate of decomissioning liability | 3,713 | 512 |
Disposals | (11,768) | (1,115) |
Transfers | 23,348 | 7,152 |
Balance | 269,669 | 239,921 |
Plant and equipment | Accumulated depreciation, amortisation | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance | 156,223 | 142,105 |
Depletion, depreciation and amortization | 21,447 | 14,562 |
Disposals | (10,724) | (444) |
Balance | 166,946 | 156,223 |
Mining properties | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance | 100,850 | |
Balance | 96,022 | 100,850 |
Mining properties | Gross carrying amount | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance | 436,810 | 432,162 |
Additions | 6,249 | 4,648 |
Change in estimate of decomissioning liability | ||
Disposals | ||
Transfers | 4,016 | |
Balance | 447,075 | 436,810 |
Mining properties | Accumulated depreciation, amortisation | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance | 335,960 | 319,173 |
Depletion, depreciation and amortization | 15,093 | 16,787 |
Disposals | ||
Balance | 351,053 | 335,960 |
Assets under construction | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance | 47,482 | |
Balance | 50,152 | 47,482 |
Assets under construction | Gross carrying amount | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance | 47,482 | 33,853 |
Additions | 26,046 | 20,781 |
Change in estimate of decomissioning liability | ||
Disposals | (28) | |
Transfers | (23,348) | (7,152) |
Balance | 50,152 | 47,482 |
Assets under construction | Accumulated depreciation, amortisation | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance | ||
Depletion, depreciation and amortization | ||
Disposals | ||
Balance | ||
Exploration and evaluation expenditure | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance | 51,483 | |
Balance | 56,218 | 51,483 |
Exploration and evaluation expenditure | Gross carrying amount | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance | 64,524 | 51,315 |
Additions | 8,751 | 13,209 |
Change in estimate of decomissioning liability | ||
Disposals | ||
Transfers | (4,016) | |
Balance | 69,259 | 64,524 |
Exploration and evaluation expenditure | Accumulated depreciation, amortisation | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance | 13,041 | 13,041 |
Depletion, depreciation and amortization | ||
Disposals | ||
Balance | $ 13,041 | $ 13,041 |
Property, plant and equipment_3
Property, plant and equipment (Detail Textuals) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about property, plant and equipment [abstract] | ||
Depletion and depreciation expense | $ 36,084 | $ 31,349 |
Depletion and depreciation expense capitalized to inventory | 1,390 | 887 |
Borrowing costs capitalized | $ 0 | $ 116 |
Capitalisation weighted average rate of borrowing costs | 5.25% |
Accounts payable and accrued _3
Accounts payable and accrued liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Trade and other current payables [abstract] | ||
Trade payables | $ 30,422 | $ 24,662 |
Other payables and accrued liabilities | 14,488 | 11,429 |
Accounts payable and accrued liabilities | $ 44,910 | $ 36,091 |
Current and deferred income t_3
Current and deferred income tax liability (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Current Tax Expense | ||
Current income tax | $ 17,416 | $ 25,432 |
Total Current Tax Expense | 17,416 | 25,432 |
Deferred Tax Recovery | ||
Deferred Tax Expense (recovery) | (4,888) | 908 |
Total Deferred Tax Expense (recovery) | (4,888) | 908 |
Total tax expense | $ 12,528 | $ 26,340 |
Current and deferred income t_4
Current and deferred income tax liability (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Current And Deferred Income Tax Liability [Abstract] | ||
Income (loss) before income taxes | $ 21,945 | $ 52,180 |
Expected Tax Rate @ 26.50% (2018 - 26.50%) | 5,776 | 13,828 |
Effect of Tax Rate Differences | 567 | 1,672 |
Stock Based Compensation Costs | 291 | 395 |
Other non-deductible expenses | 616 | 84 |
Unrealized foreign exchange income | 412 | 347 |
Inflation adjustment for Mexico tax purposes | (224) | (321) |
Expired losses | 720 | 381 |
Change in benefit of other temporary differences not recognized | 1,925 | 572 |
Foreign exchange and Other | (1,391) | 2,555 |
Mining Royalties | 3,836 | 6,827 |
Income tax expense | $ 12,528 | $ 26,340 |
Current and deferred income t_5
Current and deferred income tax liability (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Deferred Income Taxes [Roll Forward] | ||
Begriming Balance | $ (30,737) | $ (29,883) |
Change in deferred tax liability | 5,115 | (854) |
Ending Balance | (25,622) | (30,737) |
Property, Plant, and equipment | ||
Disclosure Of Deferred Income Taxes [Roll Forward] | ||
Begriming Balance | (1,666) | (1,796) |
Change in deferred tax liability | 850 | 130 |
Ending Balance | (816) | (1,666) |
Inventory | ||
Disclosure Of Deferred Income Taxes [Roll Forward] | ||
Begriming Balance | (2,098) | (1,462) |
Change in deferred tax liability | 920 | (636) |
Ending Balance | (1,178) | (2,098) |
Provisions | ||
Disclosure Of Deferred Income Taxes [Roll Forward] | ||
Begriming Balance | 2,756 | 667 |
Change in deferred tax liability | 970 | 2,089 |
Ending Balance | 3,726 | 2,756 |
Decommissioning liabilities | ||
Disclosure Of Deferred Income Taxes [Roll Forward] | ||
Begriming Balance | 3,904 | 3,928 |
Change in deferred tax liability | 1,098 | (24) |
Ending Balance | 5,002 | 3,904 |
Mining royalties | ||
Disclosure Of Deferred Income Taxes [Roll Forward] | ||
Begriming Balance | 1,464 | 1,241 |
Change in deferred tax liability | 151 | 223 |
Ending Balance | 1,615 | 1,464 |
Mining assets | ||
Disclosure Of Deferred Income Taxes [Roll Forward] | ||
Begriming Balance | (41,965) | (42,041) |
Change in deferred tax liability | (589) | 76 |
Ending Balance | (42,554) | (41,965) |
Deferred revenue | ||
Disclosure Of Deferred Income Taxes [Roll Forward] | ||
Begriming Balance | ||
Change in deferred tax liability | ||
Ending Balance | ||
Other Items | ||
Disclosure Of Deferred Income Taxes [Roll Forward] | ||
Begriming Balance | 316 | 1,532 |
Change in deferred tax liability | 1,988 | (1,216) |
Ending Balance | 2,304 | 316 |
Non-capital losses | ||
Disclosure Of Deferred Income Taxes [Roll Forward] | ||
Begriming Balance | 6,552 | 8,048 |
Change in deferred tax liability | (273) | (1,496) |
Ending Balance | $ 6,279 | $ 6,552 |
Current and deferred income t_6
Current and deferred income tax liability (Details 3) - Temporary differences - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Non-capital and capital losses | $ 46,364 | $ 37,696 |
Property, plant and equipment | 49 | 9 |
Mineral properties | 2,236 | 2,128 |
Other | (56) | (53) |
TOTAL | $ 48,593 | $ 39,780 |
Current and deferred income t_7
Current and deferred income tax liability (Detail Textuals) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Current And Deferred Income Tax Liability [Abstract] | ||
Unrealized aggregate tax losses | $ 30,517 | $ 25,605 |
Capital losses without expiry | 1,403 | 8,578 |
Taxable temporary difference of investments in subsidiaries that has not been recognized | $ 77,703 | $ 52,396 |
Applicable tax rate | 26.50% | 26.50% |
Loans payable and notes payab_3
Loans payable and notes payable (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about borrowings [line items] | ||
Current | $ 27,718 | |
Non-current | 99,814 | 28,535 |
Total loans payable | 99,814 | 56,253 |
Acquisition loan with Banco de Credito del Peru | ||
Disclosure of detailed information about borrowings [line items] | ||
Current | 6,188 | |
Non-current | 28,408 | |
Revolving credit facility with Banco de Credito del Peru | ||
Disclosure of detailed information about borrowings [line items] | ||
Current | 15,000 | |
Senior Secured Corporate Credit Facility with Banco de Credito del Peru | ||
Disclosure of detailed information about borrowings [line items] | ||
Current | ||
Non-current | 99,814 | |
Notes payable to BBVA Banco Continental | ||
Disclosure of detailed information about borrowings [line items] | ||
Current | 5,000 | |
Loan with FIFOMI | ||
Disclosure of detailed information about borrowings [line items] | ||
Current | 1,530 | |
Non-current | $ 127 |
Loans payable and notes payab_4
Loans payable and notes payable (Detail Textuals) - USD ($) $ in Thousands | May 09, 2019 | Aug. 07, 2015 | May 24, 2011 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about borrowings [line items] | |||||
Current borrowings | $ 27,718 | ||||
Principal repayments | $ 15,000 | ||||
Corona Acquisition Loan with Banco de Credito del Peru S.A. ("BCP") | LIBOR interest rate | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Interest rate | 3.65% | 4.15% | |||
Corona Acquisition Loan with Banco de Credito del Peru S.A. ("BCP") | Dia Bras | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Loan agreement amount | $ 150,000 | ||||
Financing cost | 3,750 | ||||
Net proceeds from loan agreement | $ 146,250 | ||||
Borrowing maturity | 5 years | ||||
Principal repayment grace period | 1 year | ||||
Current borrowings | $ 48,000 | ||||
Borrowing, extended maturity | 5 years | ||||
Principal repayments | 34,500 | 6,000 | |||
Amortized cost borrowing effective interest rate | 4.71% | ||||
Amortization expense of borrowing transaction cost | 218 | 200 | |||
Interest payment | $ 868 | $ 2,177 | |||
Corona Acquisition Loan with Banco de Credito del Peru S.A. ("BCP") | Dia Bras | LIBOR interest rate | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Description of interest rate basis | 3M LIBOR | 3M LIBOR | |||
Corona Acquisition Loan with Banco de Credito del Peru S.A. ("BCP") | Dia Bras | Corona | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Percentage of acquisition | 81.84% | ||||
Corona Acquisition Loan with Banco de Credito del Peru S.A. ("BCP") | Dia Bras | Tranche 1 quarterly principal repayments beginning in November 2016 Till August 2020 | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Current borrowings | $ 24,000 | ||||
Principal repayments | 1,500 | ||||
Corona Acquisition Loan with Banco de Credito del Peru S.A. ("BCP") | Dia Bras | Tranche 2 Due in Full August 2020 | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Current borrowings | $ 24,000 |
Loans payable and notes payab_5
Loans payable and notes payable (Detail Textuals 1) - USD ($) $ in Thousands | May 09, 2019 | Aug. 09, 2018 | Aug. 09, 2017 | Aug. 31, 2017 |
Disclosure of detailed information about borrowings [line items] | ||||
Principal repayments | $ 15,000 | |||
DBP Credit Facility with BCP | Credit Facility | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Loan agreement amount | $ 15,000 | $ 15,000 | ||
Borrowing maturity | 1 year | 1 year | ||
DBP Credit Facility with BCP | Credit Facility | LIBOR interest rate | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Adjustment to interest rate basis | 1.04% | 0.95% | 1.05% | |
Amount of borrowing withdrawn | $ 8,000 | $ 7,000 | ||
Description of interest rate basis | 3M LIBOR |
Loans payable and notes payab_6
Loans payable and notes payable (Detail Textuals 2) - USD ($) $ in Thousands | May 09, 2019 | Dec. 24, 2018 | Sep. 25, 2018 | Mar. 31, 2018 | Dec. 31, 2019 |
Disclosure of detailed information about borrowings [line items] | |||||
Principal repayments | $ 15,000 | ||||
Notes payable to BBVA Banco Continental | Credit Facility | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Loan agreement amount | $ 5,000 | $ 5,000 | $ 5,000 | ||
Borrowing maturity | 30 days | 90 days | |||
Principal repayments | $ 5,000 | ||||
Notes payable to BBVA Banco Continental | Credit Facility | LIBOR interest rate | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Description of interest rate basis | three-month LIBOR | ||||
Borrowings, adjustment to interest rate basis | 2.52% | ||||
Interest rate | 2.80% | 2.68% |
Loans payable and notes payab_7
Loans payable and notes payable (Detail Textuals 3) - FIFOMI loan $ in Thousands, $ in Thousands | Feb. 02, 2015USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019MXN ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018MXN ($) | Feb. 02, 2015MXN ($) | Jan. 31, 2015MXN ($) |
Dia Bras | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Loan agreement amount | $ 120,000 | ||||||
Amount of borrowing withdrawn | $ 7,995 | ||||||
Financing cost | 124 | ||||||
Net proceeds from loan agreement | $ 7,871 | ||||||
Interest payment | $ 24 | $ 248 | |||||
Principal payments | $ 1,693 | $ 1,560 | |||||
Dia Bras | MXN | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Amount of borrowing withdrawn | $ 120,000 | ||||||
Interest payment | $ 456 | $ 4,772 | |||||
Principal payments | $ 32,500 | $ 30,000 | |||||
TIIE | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Adjustment to interest rate basis | 3.00% | 3.00% | |||||
Borrowing repayment term | 4 years |
Loans payable and notes payab_8
Loans payable and notes payable (Detail Textuals 4) - USD ($) $ in Thousands | Mar. 11, 2019 | Dec. 31, 2019 | Jun. 29, 2019 | May 08, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about borrowings [line items] | |||||
Current borrowings | $ 27,718 | ||||
Senior Secured Corporate with BCP | Credit Facility | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Current borrowings | $ 100,000 | ||||
Borrowing maturity | March 2025 | ||||
Borrowing Term | 6 years | ||||
Interest rate | 3.15% | ||||
Description of interest rate basis | LIBOR 3M | ||||
Borrowing repayment term | 4 years | ||||
Senior Secured Corporate with BCP | Credit Facility | Principal Repayment Grace | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Borrowing repayment term | 2 years | ||||
Senior Secured Corporate with BCP | Credit Facility | Corona Acquisition Loan | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Borrowing maturity | P6Y | ||||
Interest rate | 5.75% | ||||
Senior Secured Corporate with DBP | Credit Facility | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Current borrowings | $ 21,400 | $ 2,910 | $ 30,000 | $ 48,600 |
Decommissioning liability (Deta
Decommissioning liability (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Disclosure of other provisions [abstract] | |||
Balance, beginning of year | $ 13,304 | $ 13,271 | |
Liabilities settled during the year | (914) | (1,293) | |
Interest cost | 647 | 684 | |
Revisions and new estimated cash flows | [1] | 3,857 | 642 |
Balance, end of year | 16,894 | 13,304 | |
Less: current portion | (865) | (2,038) | |
Long-term decommissioning liability | 16,029 | $ 11,266 | |
Revision to decommissioning liability | $ 39,000 | ||
[1] | Revision to decommissioning liability includes mainly $3.9 million of increase in asset retirement obligation at Yauricocha resulting from a revised mine-closure plan that includes activities related to the expanded tailings disposition facility. |
Decommissioning liability (De_2
Decommissioning liability (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Mexico | ||
Disclosure of other provisions [line items] | ||
Estimated undiscounted cash flows | $ 949 | $ 965 |
Discount rate | 7.00% | 10.00% |
Settlement period | 4 years | 6 years |
Inflation | 4.00% | 4.00% |
Peru | ||
Disclosure of other provisions [line items] | ||
Estimated undiscounted cash flows | $ 20,249 | $ 15,580 |
Discount rate | 5.00% | 7.00% |
Inflation | 2.00% | 2.50% |
Minimum | Peru | ||
Disclosure of other provisions [line items] | ||
Settlement period | 4 years | 5 years |
Maximum | Peru | ||
Disclosure of other provisions [line items] | ||
Settlement period | 15 years | 11 years |
Other liabilities (Details)
Other liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current | ||
Profit-sharing and other employee related obligations | $ 7,248 | $ 8,908 |
Non-current | ||
Other employee related obligations | 1,297 | 1,081 |
Lease liabilities | 257 | |
Other liabilities non-current | $ 1,554 | $ 1,081 |
Other liabilities (Detail Textu
Other liabilities (Detail Textuals) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Other Liabilities [Line Items] | ||
Provision for wages, salaries and other employee benefits | $ 3,130 | $ 2,943 |
Peru | ||
Disclosure Of Other Liabilities [Line Items] | ||
Provisions for employee benefits | $ 4,118 | $ 5,965 |
Peru | Office Building | ||
Disclosure Of Other Liabilities [Line Items] | ||
Lease agreement expiry date | May 31, 2024 |
Share capital and share-based_3
Share capital and share-based payments - (Details 1) - RSU - shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Outstanding, beginning of period | 1,380,085 | 1,316,314 |
Granted | 1,356,418 | 679,627 |
Exercised | (700,698) | (614,572) |
Forfeited | (405,382) | (1,284) |
Outstanding, end of period | 1,630,423 | 1,380,085 |
Share capital and share-based_4
Share capital and share-based payments - (Detail Textuals) | Dec. 11, 2018shares | Sep. 18, 2019shares | Nov. 30, 2018shares | Dec. 31, 2019USD ($)shares | Dec. 31, 2019$ / shares | Dec. 16, 2019shares | Dec. 31, 2018USD ($)shares | Dec. 31, 2018$ / shares | Oct. 10, 2019$ / sharesshares | Jun. 29, 2012shares |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||
Share-based compensation expense | $ | $ 1,174,000 | $ 1,542,000 | ||||||||
NCIB | ||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||
Proposed to repurchase for cancellation of common shares | 1,500,000 | |||||||||
Percentage of issued and outstanding common shares in proposed repurchase for cancellation | 0.92% | |||||||||
Shares purchased | 2,012,654 | |||||||||
Shares purchased, value | $ | $ 2,844,000 | |||||||||
Shares purchased book value | $ | $ 2,481,000 | |||||||||
TSX | ||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||
Shares repurchased through facilities of TSX | 1,500,000 | |||||||||
Maximum number of shares purchases daily | 4,214 | |||||||||
Percentage of shares of daily trading volume | 25.00% | |||||||||
Number of shares of daily trading volume | 16,858 | |||||||||
Maximum annual aggregate limit of purchase shares | 1,500,000 | |||||||||
Automatic share purchase plan | 250,000 | |||||||||
Automatic share purchase plan price per share | $ / shares | $ 2.50 | |||||||||
TSX | Maximum | ||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||
Number of common shares increase in repurchase for cancellation | 1,500,000 | |||||||||
TSX | Minimum | ||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||
Number of common shares increase in repurchase for cancellation | 2,500,000 | |||||||||
RSU | ||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||
Current maximum number of common shares authorized | 8,000,000 | |||||||||
Number of RSU's granted under tranche two | 1,356,418 | 679,627 | ||||||||
Fair value of RSU's granted under tranche two | $ / shares | $ 1.91 | |||||||||
Weighted average fair value of RSUs exercised under tranche two | $ / shares | 2.62 | |||||||||
Weighted average fair value of RSUs forfeited under tranche two | $ / shares | 2.68 | $ 1.52 | ||||||||
Weighted average fair value of RSUs outstanding under tranche two | $ / shares | $ 2.34 | $ 3.01 |
Non-controlling interest -Summa
Non-controlling interest -Summarized balance sheet - (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current | ||
Assets | $ 104,300 | $ 71,498 |
Liabilities | (54,378) | (79,787) |
Non-current | ||
Assets | 307,147 | 284,943 |
Corona | ||
Current | ||
Assets | 90,438 | 78,207 |
Liabilities | (27,863) | (36,622) |
Total current net assets | 62,575 | 41,585 |
Non-current | ||
Assets | 171,884 | 162,733 |
Liabilities | (39,915) | (37,519) |
Total non-current net assets | 131,969 | 125,214 |
Net assets | $ 194,544 | $ 166,799 |
Non-controlling interest - Summ
Non-controlling interest - Summarized income statement - (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | |||
Disclosure of subsidiaries [line items] | ||||
Revenue | $ 229,038 | [1] | $ 232,371 | [2] |
Income before income tax | 21,945 | 52,180 | ||
Income tax expense | (12,528) | (26,340) | ||
Total income | 9,417 | 25,840 | ||
Total income attributable to non-controlling interests | 4,986 | 7,026 | ||
Corona | ||||
Disclosure of subsidiaries [line items] | ||||
Revenue | 155,983 | 168,657 | ||
Income before income tax | 41,796 | 62,735 | ||
Income tax expense | (14,338) | (24,047) | ||
Total income | 27,458 | 38,688 | ||
Total income attributable to non-controlling interests | 4,986 | 7,026 | ||
Dividends paid to non-controlling interests | $ (2,883) | |||
[1] | Includes provisional pricing adjustments of: $216 for Bolivar | |||
[2] | Includes provisional pricing adjustments of: $1,289 for Yauricocha, $(190) for Bolivar, and $(45) for Cusi. |
Non-controlling interest - Su_2
Non-controlling interest - Summarized cash flows - (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities | ||
Net changes in non cash working capital items | $ 3,680 | $ (2,447) |
Net income | 39,587 | 61,903 |
Net cash used in investing activities | (54,621) | (49,315) |
Net cash from/(used in) financing activities | 36,162 | (14,459) |
Effect of foreign exchange rate changes on cash and cash equivalents | 20 | (175) |
Increase (decrease) in cash and cash equivalents | 21,148 | (2,046) |
Cash and cash equivalents, beginning of year | 21,832 | 23,878 |
Cash and cash equivalents, end of year | 42,980 | 21,832 |
Corona | ||
Cash flows from operating activities | ||
Cash generated from operating activities | 63,887 | 83,178 |
Net changes in non cash working capital items | (2,895) | 875 |
Decomissioning liabilities settled | (915) | (1,293) |
Income taxes paid | (21,885) | (29,529) |
Net income | 38,192 | 53,231 |
Net cash used in investing activities | (25,882) | (25,243) |
Net cash from/(used in) financing activities | 4,775 | (29,963) |
Effect of foreign exchange rate changes on cash and cash equivalents | 21 | (35) |
Increase (decrease) in cash and cash equivalents | 17,106 | (2,010) |
Cash and cash equivalents, beginning of year | 17,898 | 19,908 |
Cash and cash equivalents, end of year | $ 35,004 | $ 17,898 |
Expenses by nature (Details)
Expenses by nature (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Expenses by nature [abstract] | ||
Employee compensation and benefits | $ 28,986 | $ 27,458 |
Third party and contractors costs | 60,905 | 46,599 |
Depletion, depreciation and amortization | 36,084 | 31,409 |
Consumables | 39,515 | 34,655 |
Changes in inventory and other | 5,786 | 6,468 |
Total Mining costs | $ 171,276 | $ 146,589 |
Expenses by nature (Details 1)
Expenses by nature (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Expenses by nature [abstract] | ||
Salaries and benefits | $ 9,763 | $ 7,333 |
Consulting and professional fees | 2,705 | 3,987 |
Office expenses | 1,539 | 1,507 |
Marketing and communication expenses | 807 | 805 |
Share-based compensation expense | 1,174 | 1,542 |
Listing and filing fees | 318 | 344 |
Director expenses | 1,282 | 1,312 |
Travelling expense | 596 | 627 |
Other | 1,331 | 1,462 |
Total General and administrative expenses | $ 19,515 | $ 18,919 |
Other income (expenses) (Detail
Other income (expenses) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Other Income Expenses [Abstract] | ||
Gain/(loss) on sale of supplies and fixed assets | $ (162) | $ 85 |
Interest income | 203 | 36 |
Allowance for inventory obsolescence | (238) | (1,739) |
Miscellaneous income (expenses) | (310) | 330 |
Total Other income (expenses) | $ (507) | $ (1,288) |
Interest expense and other fi_3
Interest expense and other finance costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Interest Expense And Other Finance Costs [Abstract] | ||
Interest expense on loans | $ 4,431 | $ 2,913 |
Amortization of loan transaction costs | 37 | |
Interest cost on decommissioning liability | 647 | 684 |
Interest expense and other finance costs | $ 5,078 | $ 3,634 |
Segment reporting (Details)
Segment reporting (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | |||
Disclosure of operating segments [line items] | ||||
Revenue | $ 229,038 | [1] | $ 232,371 | [2] |
Production cost of sales | (135,192) | (115,180) | ||
Depletion of mineral property | (15,122) | (16,787) | ||
Depreciation and amortization of property, plant and equipment | (20,962) | (14,622) | ||
Cost of sales | (171,276) | (146,589) | ||
Gross profit from mining operations | 57,762 | 85,782 | ||
Income (loss) from operations | 28,506 | 58,312 | ||
Interest expense and other finance costs | (5,078) | (3,634) | ||
Other income (expense) | (507) | (1,288) | ||
Foreign currency exchange loss | (976) | (1,210) | ||
Income (loss) before income tax | 21,945 | 52,180 | ||
Income tax expense | (12,528) | (26,340) | ||
Net income (loss) from operations | 9,417 | 25,840 | ||
Total assets | 411,447 | 356,441 | ||
Non-current assets | 307,147 | 284,943 | ||
Total liabilities | 199,428 | 152,836 | ||
Operating segment | Peru | ||||
Disclosure of operating segments [line items] | ||||
Total assets | 241,839 | 209,159 | ||
Non-current assets | 175,244 | 163,222 | ||
Total liabilities | 137,146 | 124,020 | ||
Operating segment | Mexico | ||||
Disclosure of operating segments [line items] | ||||
Total assets | 162,657 | 145,775 | ||
Non-current assets | 131,810 | 121,654 | ||
Total liabilities | 31,130 | 27,607 | ||
Operating segment | CANADA | ||||
Disclosure of operating segments [line items] | ||||
Total assets | 6,951 | 1,507 | ||
Non-current assets | 91 | 67 | ||
Total liabilities | 31,152 | 1,209 | ||
Operating segment | Yauricocha Mine | Peru | ||||
Disclosure of operating segments [line items] | ||||
Revenue | 155,983 | [1] | 168,657 | [2] |
Production cost of sales | (79,339) | (74,731) | ||
Depletion of mineral property | (10,631) | (13,229) | ||
Depreciation and amortization of property, plant and equipment | (10,346) | (4,626) | ||
Cost of sales | (100,316) | (92,586) | ||
Gross profit from mining operations | 55,667 | 76,071 | ||
Income (loss) from operations | 39,879 | 60,640 | ||
Interest expense and other finance costs | (4,624) | (2,637) | ||
Other income (expense) | (637) | 1,029 | ||
Foreign currency exchange loss | (170) | (26) | ||
Income (loss) before income tax | 34,448 | 59,006 | ||
Income tax expense | (14,297) | (24,068) | ||
Net income (loss) from operations | 20,151 | 34,938 | ||
Operating segment | Bolivar Mine | Mexico | ||||
Disclosure of operating segments [line items] | ||||
Revenue | 60,402 | [1] | 52,451 | [2] |
Production cost of sales | (45,491) | (33,168) | ||
Depletion of mineral property | (2,177) | (2,918) | ||
Depreciation and amortization of property, plant and equipment | (8,147) | (8,197) | ||
Cost of sales | (55,815) | (44,283) | ||
Gross profit from mining operations | 4,587 | 8,168 | ||
Income (loss) from operations | (4,918) | 1,836 | ||
Interest expense and other finance costs | (34) | |||
Other income (expense) | 105 | (1,967) | ||
Foreign currency exchange loss | (21) | (1,694) | ||
Income (loss) before income tax | (4,868) | (1,825) | ||
Income tax expense | 1,450 | (1,768) | ||
Net income (loss) from operations | (3,418) | (3,593) | ||
Operating segment | Cusi Mine | Mexico | ||||
Disclosure of operating segments [line items] | ||||
Revenue | 12,653 | [1] | 11,263 | [2] |
Production cost of sales | (10,362) | (7,281) | ||
Depletion of mineral property | (2,314) | (640) | ||
Depreciation and amortization of property, plant and equipment | (2,469) | (1,799) | ||
Cost of sales | (15,145) | (9,720) | ||
Gross profit from mining operations | (2,492) | 1,543 | ||
Income (loss) from operations | (1,079) | 919 | ||
Interest expense and other finance costs | (8) | (997) | ||
Other income (expense) | 25 | (347) | ||
Foreign currency exchange loss | (5) | (299) | ||
Income (loss) before income tax | (1,067) | (724) | ||
Income tax expense | 319 | (504) | ||
Net income (loss) from operations | (748) | (1,228) | ||
Corporate | CANADA | ||||
Disclosure of operating segments [line items] | ||||
Revenue | [1] | [2] | ||
Production cost of sales | ||||
Depletion of mineral property | ||||
Depreciation and amortization of property, plant and equipment | ||||
Cost of sales | ||||
Gross profit from mining operations | ||||
Income (loss) from operations | (5,376) | (5,083) | ||
Interest expense and other finance costs | (412) | |||
Other income (expense) | (3) | |||
Foreign currency exchange loss | (780) | 809 | ||
Income (loss) before income tax | (6,568) | (4,277) | ||
Income tax expense | ||||
Net income (loss) from operations | $ (6,568) | $ (4,277) | ||
[1] | Includes provisional pricing adjustments of: $216 for Bolivar | |||
[2] | Includes provisional pricing adjustments of: $1,289 for Yauricocha, $(190) for Bolivar, and $(45) for Cusi. |
Segment reporting (Detail Textu
Segment reporting (Detail Textuals) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | ||||
Disclosure of operating segments [line items] | |||||
Revenue | $ 229,038 | [1] | $ 232,371 | [2] | |
Trade receivables | [3] | 20,549 | 19,199 | ||
Two Customers | Peru | |||||
Disclosure of operating segments [line items] | |||||
Revenue | $ (155,983) | $ (168,657) | |||
Percentage of revenue | 68.00% | 73.00% | |||
Information about major customers | 2 | 2 | |||
Trade receivables | $ 16,195 | ||||
Two Customers | Mexico | |||||
Disclosure of operating segments [line items] | |||||
Revenue | $ (73,055) | $ (63,714) | |||
Percentage of revenue | 32.00% | 27.00% | |||
Information about major customers | 2 | 2 | |||
Trade receivables | $ 4,354 | ||||
First Customer | Peru | |||||
Disclosure of operating segments [line items] | |||||
Percentage of revenue | 53.00% | 79.00% | |||
First Customer | Mexico | |||||
Disclosure of operating segments [line items] | |||||
Percentage of revenue | 82.00% | 82.00% | |||
Second Customer | Peru | |||||
Disclosure of operating segments [line items] | |||||
Percentage of revenue | 47.00% | 21.00% | |||
Second Customer | Mexico | |||||
Disclosure of operating segments [line items] | |||||
Percentage of revenue | 18.00% | 18.00% | |||
Bolivar Mine | |||||
Disclosure of operating segments [line items] | |||||
Provisional pricing adjustments | $ 216 | $ (190) | |||
Yauricocha Mine | |||||
Disclosure of operating segments [line items] | |||||
Provisional pricing adjustments | 1,289 | ||||
Cusi Mine | |||||
Disclosure of operating segments [line items] | |||||
Provisional pricing adjustments | $ (45) | ||||
[1] | Includes provisional pricing adjustments of: $216 for Bolivar | ||||
[2] | Includes provisional pricing adjustments of: $1,289 for Yauricocha, $(190) for Bolivar, and $(45) for Cusi. | ||||
[3] | Trade receivables exclude sales and income tax receivables. |
Financial instruments and fin_3
Financial instruments and financial risk management (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
ASSETS | ||||
Cash and cash equivalents | $ 42,980 | $ 21,832 | $ 23,878 | |
Trade receivables | [1] | 20,549 | 19,199 | |
Financial assets | ||||
Total Financial assets | 63,529 | 41,031 | ||
LIABILITIES | ||||
Accounts payable | 30,422 | 24,662 | ||
Loans payable | 99,814 | 56,253 | ||
Total Financial liabilities | 130,236 | 80,915 | ||
Amortized Cost | ||||
LIABILITIES | ||||
Accounts payable | 30,422 | |||
Loans payable | 99,814 | |||
Total Financial liabilities | 130,236 | |||
FVTPL | ||||
LIABILITIES | ||||
Accounts payable | ||||
Loans payable | ||||
Total Financial liabilities | ||||
Other financial liabilities | ||||
LIABILITIES | ||||
Accounts payable | 24,662 | |||
Loans payable | 56,253 | |||
Total Financial liabilities | 80,915 | |||
Amortized Cost | ||||
ASSETS | ||||
Cash and cash equivalents | 42,980 | |||
Trade receivables | [1] | |||
Total Financial assets | 42,980 | |||
FVTPL | ||||
ASSETS | ||||
Cash and cash equivalents | ||||
Trade receivables | [1] | 20,549 | 19,199 | |
Financial assets | ||||
Total Financial assets | $ 20,549 | 19,199 | ||
Loans and receivables | ||||
ASSETS | ||||
Cash and cash equivalents | 21,832 | |||
Financial assets | ||||
Total Financial assets | $ 21,832 | |||
[1] | Trade receivables exclude sales and income tax receivables. |
Financial instruments and fin_4
Financial instruments and financial risk management (Details 1) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of fair value measurement of assets [line items] | |||
Trade receivables | [1] | $ 20,549 | $ 19,199 |
Level 1 | |||
Disclosure of fair value measurement of assets [line items] | |||
Trade receivables | |||
Level 2 | |||
Disclosure of fair value measurement of assets [line items] | |||
Trade receivables | 20,549 | 19,199 | |
Level 3 | |||
Disclosure of fair value measurement of assets [line items] | |||
Trade receivables | |||
Trade receivables | |||
Disclosure of fair value measurement of assets [line items] | |||
Trade receivables | 20,549 | 19,199 | |
Trade receivables | Level 1 | |||
Disclosure of fair value measurement of assets [line items] | |||
Trade receivables | |||
Trade receivables | Level 2 | |||
Disclosure of fair value measurement of assets [line items] | |||
Trade receivables | 20,549 | 19,199 | |
Trade receivables | Level 3 | |||
Disclosure of fair value measurement of assets [line items] | |||
Trade receivables | |||
[1] | Trade receivables exclude sales and income tax receivables. |
Financial instruments and fin_5
Financial instruments and financial risk management (Details 2) S/ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CAD ($) | Dec. 31, 2019MXN ($) | Dec. 31, 2019PEN (S/) | Dec. 31, 2018USD ($) | Dec. 31, 2018CAD ($) | Dec. 31, 2018MXN ($) | Dec. 31, 2018PEN (S/) | Dec. 31, 2017USD ($) |
Disclosure of detailed information about financial instruments [line items] | |||||||||
Cash and cash equivalents | $ 42,980 | $ 21,832 | $ 23,878 | ||||||
Currency risk | USD | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Cash and cash equivalents | 2,659 | 1,640 | |||||||
Income tax and other receivables | 14,990 | 9,397 | |||||||
Assets subject to currency risk | 17,649 | 11,037 | |||||||
Accounts payable and other liabilities | (46,289) | (43,765) | |||||||
Total | $ (28,640) | $ (32,728) | |||||||
Currency risk | CAD | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Cash and cash equivalents | $ 113 | $ 183 | |||||||
Income tax and other receivables | 45 | 32 | |||||||
Assets subject to currency risk | 158 | 215 | |||||||
Accounts payable and other liabilities | (724) | (1,268) | |||||||
Total | $ (566) | $ (1,053) | |||||||
Currency risk | MXN | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Cash and cash equivalents | $ 73 | $ 393 | |||||||
Income tax and other receivables | 13,262 | 8,748 | |||||||
Assets subject to currency risk | 13,335 | 9,141 | |||||||
Accounts payable and other liabilities | (30,208) | (22,865) | |||||||
Total | $ (16,873) | $ (13,724) | |||||||
Currency risk | PEN | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Cash and cash equivalents | S/ | S/ 2,473 | S/ 1,064 | |||||||
Income tax and other receivables | S/ | 1,683 | 617 | |||||||
Assets subject to currency risk | S/ | 4,156 | 1,681 | |||||||
Accounts payable and other liabilities | S/ | (15,357) | (19,632) | |||||||
Total | S/ | S/ (11,201) | S/ (17,951) |
Financial instruments and fin_6
Financial instruments and financial risk management (Details 3) - Commodity price risk - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Sales revenue from silver | |||
Disclosure of detailed information about financial instruments [line items] | |||
10% decrease in commodity prices | $ (97) | $ (27) | |
Sales revenue from copper | |||
Disclosure of detailed information about financial instruments [line items] | |||
10% decrease in commodity prices | [1] | (456) | |
Sales revenue from lead | |||
Disclosure of detailed information about financial instruments [line items] | |||
10% decrease in commodity prices | (1) | ||
Sales revenue from gold | |||
Disclosure of detailed information about financial instruments [line items] | |||
10% decrease in commodity prices | $ (323) | $ (87) | |
[1] | For 2019, price was fixed for 100% of copper concentrate |
Financial instruments and fin_7
Financial instruments and financial risk management (Details 4) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||
Accounts payable and accrued liabilities | $ 44,910 | $ 36,091 |
Loans payable | 99,814 | $ 56,253 |
Liquidity risk | ||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||
Accounts payable and accrued liabilities | 44,910 | |
Loans payable | 99,814 | |
Interest on loans payable | 17,598 | |
Other liabilities | 8,802 | |
Total Commitments | 171,124 | |
Liquidity risk | Within 1 year | ||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||
Accounts payable and accrued liabilities | 44,910 | |
Loans payable | ||
Interest on loans payable | 5,192 | |
Other liabilities | 7,248 | |
Total Commitments | 57,350 | |
Liquidity risk | 1-2 Years | ||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||
Accounts payable and accrued liabilities | ||
Loans payable | 18,750 | |
Interest on loans payable | 4,977 | |
Other liabilities | 1,554 | |
Total Commitments | 25,281 | |
Liquidity risk | 2-5 years | ||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||
Accounts payable and accrued liabilities | ||
Loans payable | 81,064 | |
Interest on loans payable | 7,429 | |
Other liabilities | ||
Total Commitments | 88,493 | |
Liquidity risk | After 5 years | ||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||
Accounts payable and accrued liabilities | ||
Loans payable | ||
Interest on loans payable | ||
Other liabilities | ||
Total Commitments |
Financial instruments and fin_8
Financial instruments and financial risk management (Details 5) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of risk management strategy related to hedge accounting [line items] | ||||
Cash and cash equivalents | $ 42,980 | $ 21,832 | $ 23,878 | |
Trade receivables | [1] | 20,549 | 19,199 | |
Total Financial assets | 63,529 | 41,031 | ||
Credit risk | ||||
Disclosure of risk management strategy related to hedge accounting [line items] | ||||
Cash and cash equivalents | 42,980 | 21,832 | ||
Trade receivables | 20,549 | 19,199 | ||
Total Financial assets | $ 63,529 | $ 41,031 | ||
[1] | Trade receivables exclude sales and income tax receivables. |
Financial instruments and fin_9
Financial instruments and financial risk management (Detail Textuals) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about financial instruments [abstract] | ||
Percentage of appreciation in Canadian dollar exchange rate against US dollar | 10.00% | 10.00% |
Percentage of appreciation in US dollar exchange rate against Peruvian Nuevo Soles and Mexican Peso | 10.00% | 10.00% |
Net foreign exchange gain | $ 2,053 | $ 1,992 |
Financial instruments and fi_10
Financial instruments and financial risk management (Detail Textuals 1) - Peru - Interest rate risk - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about financial instruments [line items] | ||
Weighted average interest rate for loans and notes payable | 5.58% | 4.26% |
Variable in Interest rate | 1.00% | 1.00% |
Increase (Decrease) in Net Loss | $ 690 | $ 486 |
Capital management (Details)
Capital management (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of objectives, policies and processes for managing capital [abstract] | |||
Equity attributable to owners of the Company | $ 176,783 | $ 173,355 | |
Loans payable | 99,814 | 56,253 | |
Capital including cash and cash equivalents | 276,597 | 229,608 | |
Less: Cash and cash equivalents | (42,980) | (21,832) | $ (23,878) |
Capital | $ 233,617 | $ 207,776 |
Related party transactions (Det
Related party transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Related party transactions [abstract] | |||
Salaries and other short term employment benefits | $ 3,304 | $ 2,816 | |
Share-based payments | [1] | 1,581 | 1,500 |
Total compensation | $ 4,885 | $ 4,316 | |
[1] | calculated at fair value on day of the grant |
Related party transactions (D_2
Related party transactions (Details Textual) - Key management personnel of entity or parent - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of transactions between related parties [line items] | ||
Consulting fees | $ 200 | $ 200 |
Accounts payable and accrued liabilities | ||
Accounts receivable |
Supplemental cash flow inform_3
Supplemental cash flow information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Supplemental Cash Flow Information [Abstract] | ||
Trade and other receivables | $ (5,885) | $ 1,869 |
Financial and other assets | (563) | (401) |
Income tax receivable | (282) | 78 |
Inventories | (3,849) | (2,917) |
Accounts payable and accrued liabilities | 6,752 | 4,201 |
Income taxes payable | (311) | |
Other liabilities | 147 | (72) |
Total | $ (3,680) | $ 2,447 |
Revenues from mining operatio_3
Revenues from mining operations (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | [2] | ||
Revenues From Mining Operations [Abstract] | ||||
Revenues from contracts with customers | $ 228,822 | |||
Provisional pricing adjustments on concentrate sales | 216 | |||
Total revenues | $ 229,038 | [1] | $ 232,371 | |
[1] | Includes provisional pricing adjustments of: $216 for Bolivar | |||
[2] | Includes provisional pricing adjustments of: $1,289 for Yauricocha, $(190) for Bolivar, and $(45) for Cusi. |
Revenues from mining operatio_4
Revenues from mining operations (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | [2] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Revenues from contracts with customers | $ 229,038 | [1] | $ 232,371 | |
Sales revenue from silver | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Revenues from contracts with customers | 42,450 | |||
Sales revenue from copper | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Revenues from contracts with customers | 88,128 | |||
Sales revenue from lead | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Revenues from contracts with customers | 28,073 | |||
Sales revenue from zinc | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Revenues from contracts with customers | 58,163 | |||
Sales revenue from gold | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Revenues from contracts with customers | $ 12,224 | |||
[1] | Includes provisional pricing adjustments of: $216 for Bolivar | |||
[2] | Includes provisional pricing adjustments of: $1,289 for Yauricocha, $(190) for Bolivar, and $(45) for Cusi. |
Contingencies (Details Textual)
Contingencies (Details Textual) - Polo y Ron Minerals, S.A. de C.V. - Legal proceedings contingent liability $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($)Concession | |
Disclosure of contingent liabilities [line items] | |
Number of mining concessions | Concession | 17 |
Amount recognised as expenses from arrangement involving legal matter | $ | $ 422,674 |