Cover
Cover | 12 Months Ended |
Dec. 31, 2021shares | |
Cover [Abstract] | |
Document Type | 40-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2021 |
Current Fiscal Year End Date | --12-31 |
Entity File Number | 001-40459 |
Entity Registrant Name | ERO COPPER CORP. |
Entity Incorporation, State or Country Code | A1 |
Title of 12(b) Security | Common Shares, no par value |
Trading Symbol | ERO |
Security Exchange Name | NYSE |
Annual Information Form | true |
Audited Annual Financial Statements | true |
Entity Common Stock, Shares Outstanding | 90,204,378 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
ICFR Auditor Attestation Flag | false |
Entity Central Index Key | 0001853860 |
Amendment Flag | false |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
Document Information [Line Items] | |
Entity Address, Address Line One | 625 Howe Street |
Entity Address, Address Line Two | Suite 1050 |
Entity Address, City or Town | Vancouver |
Entity Address, State or Province | BC |
Entity Address, Postal Zip Code | V6C 2T6 |
City Area Code | (604) |
Local Phone Number | 449-9236 |
Business Contact | |
Document Information [Line Items] | |
Contact Personnel Name | CT Corporation System |
Entity Address, Address Line One | 28 Liberty Street |
Entity Address, City or Town | New York |
Entity Address, State or Province | NY |
Entity Address, Postal Zip Code | 10005 |
City Area Code | (212) |
Local Phone Number | 894-8940 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Name | KPMG LLP |
Auditor Location | Vancouver, Canada |
Auditor Firm ID | 85 |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current | ||
Cash and cash equivalents | $ 130,129 | $ 62,508 |
Accounts receivable | 30,704 | 20,353 |
Inventories | 26,019 | 25,496 |
Other current assets | 21,834 | 19,184 |
Total current assets | 208,686 | 127,541 |
Non-Current | ||
Mineral, property, plant and equipment | 445,428 | 333,702 |
Exploration and evaluation assets | 32,038 | 21,024 |
Deferred income tax assets | 2,315 | 14,223 |
Deposits and other non-current assets | 1,295 | 609 |
Total non-current assets | 481,076 | 369,558 |
Total Assets | 689,762 | 497,099 |
Current | ||
Accounts payable and accrued liabilities | 66,546 | 47,243 |
Current portion of loans and borrowings | 4,344 | 12,539 |
Current portion of deferred revenue | 10,511 | 0 |
Income taxes payable | 7,191 | 3,996 |
Current portion of derivatives | 29,357 | 26,540 |
Current portion of lease liabilities | 4,711 | 1,402 |
Total current liabilities | 122,660 | 91,720 |
Non-Current | ||
Loans and borrowings | 54,906 | 155,563 |
Deferred revenue | 83,711 | 0 |
Provision for rehabilitation and closure costs | 19,037 | 18,970 |
Derivatives | 366 | 10,811 |
Lease liabilities | 2,399 | 346 |
Other non-current liabilities | 11,193 | 5,614 |
Total non-current liabilities | 171,612 | 191,304 |
Total Liabilities | 294,272 | 283,024 |
SHAREHOLDERS’ EQUITY | ||
Share capital | 133,072 | 126,152 |
Equity reserves | (94,910) | (67,291) |
Retained earnings | 354,895 | 153,842 |
Equity attributable to owners of the Company | 393,057 | 212,703 |
Non-controlling interests | 2,433 | 1,372 |
Total shareholders' equity | 395,490 | 214,075 |
Total Liabilities and Equity | $ 689,762 | $ 497,099 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Profit or loss [abstract] | ||
Revenue | $ 489,915 | $ 324,076 |
Cost of sales | (171,057) | (135,939) |
Gross profit | 318,858 | 188,137 |
Expenses | ||
General and administrative | (38,846) | (27,927) |
Share-based compensation | (7,848) | (9,064) |
Income before the undernoted | 272,164 | 151,146 |
Finance income | 2,991 | 1,346 |
Finance expense | (12,159) | (15,449) |
Foreign exchange loss | (21,968) | (79,805) |
Recovery of value added taxes | 0 | 8,886 |
NX Gold PMPA transaction fees | (1,219) | 0 |
Other expenses | (2,889) | (4,701) |
Income before income taxes | 236,920 | 61,423 |
Income tax expense | ||
Current | (22,428) | (9,675) |
Deferred | (11,860) | 750 |
Income tax expense | (34,288) | (8,925) |
Net income for the year | 202,632 | 52,498 |
Other comprehensive loss | ||
Foreign currency translation loss | (24,252) | (49,553) |
Comprehensive income | 178,380 | 2,945 |
Net income attributable to: | ||
Owners of the Company | 201,053 | 51,622 |
Non-controlling interests | 1,579 | 876 |
Net income for the year | 202,632 | 52,498 |
Comprehensive income attributable to: | ||
Owners of the Company | 176,898 | 2,267 |
Non-controlling interests | 1,482 | 678 |
Comprehensive income | $ 178,380 | $ 2,945 |
Net income per share attributable to owners of the Company | ||
Basic (in usd per share) | $ 2.27 | $ 0.60 |
Diluted (in usd per share) | $ 2.21 | $ 0.56 |
Weighted average number of common shares outstanding | ||
Basic (in shares) | 88,602,367 | 86,368,535 |
Diluted (in shares) | 90,963,452 | 92,213,628 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash Flows from Operating Activities | ||
Income for the year | $ 202,632 | $ 52,498 |
Adjustments for: | ||
Amortization and depreciation | 47,290 | 39,348 |
Income tax expense | 34,288 | 8,925 |
Amortization of deferred revenue | (7,279) | 0 |
Recovery of value added taxes | 0 | (8,886) |
Share-based compensation | 7,848 | 9,064 |
Finance income | (2,991) | (1,346) |
Finance expenses | 12,159 | 15,449 |
Foreign exchange loss | 20,277 | 79,805 |
Other | (1,164) | 1,697 |
Changes in non-cash working capital items | (15,098) | (9,532) |
Cash flows from operations | 297,962 | 187,022 |
Upfront advance from NX Gold PMPA | 100,000 | 0 |
Derivative contract settlements | (22,240) | (20,804) |
Provision settlements | (2,039) | (1,585) |
Income taxes paid | (9,094) | (1,796) |
Cash flows from operating activities | 364,589 | 162,837 |
Cash Flows used in Investing Activities | ||
Additions to property, plant and equipment | (169,159) | (117,607) |
Additions to exploration and evaluation assets | (12,672) | (199) |
Other investments | 2,305 | 1,250 |
Cash flows used in investing activities | (179,526) | (116,556) |
Cash Flows (used in) / from Financing Activities | ||
Restricted cash | 0 | 1,500 |
Lease liability payments | (4,843) | (4,337) |
New loans and borrowings, net of finance costs | 5,471 | 68,997 |
Loans and borrowings repaid | (113,240) | (57,425) |
Interest paid on loans and borrowings | (4,164) | (9,693) |
Other finance expenses paid | (4,204) | (3,156) |
Proceeds from exercise of stock options and warrants | 5,550 | 4,402 |
Cash flows (used in)/from financing activities | (115,430) | 288 |
Effect of exchange rate changes on cash and cash equivalents | (2,012) | (5,546) |
Net increase in cash and cash equivalents | 67,621 | 41,023 |
Cash and cash equivalents - beginning of year | 62,508 | 21,485 |
Cash and cash equivalents - end of year | $ 130,129 | $ 62,508 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Total | Share Capital | Equity Reserves, Contributed Surplus | Equity Reserves, Foreign Exchange | Retained Earnings | Non-controlling interest |
Beginning balance (in shares) at Dec. 31, 2019 | 85,703,646 | ||||||
Beginning balance at Dec. 31, 2019 | $ 199,058 | $ 198,223 | $ 120,492 | $ 9,084 | $ (33,573) | $ 102,220 | $ 835 |
Income for the year | 52,498 | 51,622 | 51,622 | 876 | |||
Other comprehensive loss for the year | (49,553) | (49,355) | (49,355) | (198) | |||
Comprehensive income | 2,945 | 2,267 | (49,355) | 51,622 | 678 | ||
Shares issued for: Exercise of options and warrants (in shares) | 2,175,615 | ||||||
Shares issued for: Exercise of options and warrants | 4,402 | 4,402 | $ 5,660 | (1,258) | |||
Share-based compensation | 7,811 | 7,811 | 7,811 | ||||
Reclassified as cash-based equity awards | 0 | ||||||
Dividends to non-controlling interest | (141) | (141) | |||||
Ending balance (in shares) at Dec. 31, 2020 | 87,879,261 | ||||||
Ending balance at Dec. 31, 2020 | 214,075 | 212,703 | $ 126,152 | 15,637 | (82,928) | 153,842 | 1,372 |
Income for the year | 202,632 | 201,053 | 201,053 | 1,579 | |||
Other comprehensive loss for the year | (24,252) | (24,155) | (24,155) | (97) | |||
Comprehensive income | 178,380 | 176,898 | (24,155) | 201,053 | 1,482 | ||
Shares issued for: Exercise of options and warrants (in shares) | 2,325,117 | ||||||
Shares issued for: Exercise of options and warrants | 5,550 | 5,550 | $ 6,920 | (1,370) | |||
Share-based compensation | 7,295 | 7,295 | 7,295 | ||||
Reclassified as cash-based equity awards | (9,389) | (9,389) | (9,389) | ||||
Dividends to non-controlling interest | (421) | (421) | |||||
Ending balance (in shares) at Dec. 31, 2021 | 90,204,378 | ||||||
Ending balance at Dec. 31, 2021 | $ 395,490 | $ 393,057 | $ 133,072 | $ 12,173 | $ (107,083) | $ 354,895 | $ 2,433 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2021 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Nature of Operations | Nature of Operations Ero Copper Corp. (“Ero" or the "Company") was incorporated on May 16, 2016 under the Business Corporations Act (British Columbia) and maintains its head office at Suite 1050, 625 Howe Street, Vancouver, BC, V6C 2T6. The Company’s shares are publicly traded on the Toronto Stock Exchange and the New York Stock Exchange under the symbol “ERO”. The Company’s principal asset is its 99.6% ownership interest in Mineração CaraĂba S.A. (“MCSA”). The Company also currently owns a 97.6% ownership interest in NX Gold S.A. (“NX Gold”) indirectly through its wholly-owned subsidiary, Ero Gold Corp. (“Ero Gold”). MCSA is a Brazilian company which holds a 100% interest in the MCSA Mining Complex and the Boa Esperança Property (Note 8). MCSA’s predominant activity is the production and sale of copper concentrate from the MCSA Mining Complex, located in Bahia, Brazil, with gold and silver produced and sold as by-products. The Boa Esperança Property is located within the municipality of TucumĂŁ in the southeastern part of the state of Pará, Brazil, and consists of a single mineral concession covering an area of 4,034 hectares (“ha”). NX Gold is a Brazilian gold mining company focused on the production and sale of gold as its main product and silver as its by-product. NX Gold wholly owns a 31,096 ha property, located approximately 18 kilometers west of the town of Nova Aventine, in southeastern Mato Grosso State, Brazil, consisting of a single mining concession covering an area of 620 ha, where all gold mining and processing activities occur. |
Basis of Preparation
Basis of Preparation | 12 Months Ended |
Dec. 31, 2021 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Basis of Preparation | Basis of Preparation(a) Statement of Compliance 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 of the International Financial Reporting Interpretations Committee. These consolidated financial statements were authorized for issue by the Board of Directors of the Company (the “Board”) on March 8, 2022. (b) Basis of Presentation and Principles of Consolidation These consolidated financial statements have been prepared on a historical cost basis except for fair-value through-profit-or-loss and derivative financial instruments, which are measured at fair value. These consolidated financial statements include the accounts of the Company and its subsidiaries. Subsidiaries are entities controlled by the Company. Control over a subsidiary is defined to exist when the Company is exposed to variable returns from involvement with an investee and has the ability to affect the returns through power over the investee. All intercompany balances and transactions are eliminated upon consolidation. Since the Company does not own 100% of its interests in MCSA and NX Gold, the interest attributable to non-controlling shareholders is reflected in non-controlling interests. Adjustments to non-controlling interests that do not involve the loss of control are accounted for as equity transactions and adjustments are based on a proportionate amount of the net assets of the subsidiary. Certain comparative amounts have been reclassified to conform with the current year’s financial statement presentation. Such reclassifications were not considered material. (c) Foreign Currency Translation The functional currency and presentation currency of the Company is the US dollar. The monetary assets and liabilities of the Company that are denominated in foreign currencies are translated at the rate of exchange at the statement of financial position date while non-monetary assets and liabilities are translated at historical rates. Revenues and expenses are translated at the exchange rates approximating those in effect on the date of the transactions. Exchange gains and losses arising on translation are included in profit or loss. The functional currency of MCSA and NX Gold is the Brazilian Real (“BRL”). The assets and liabilities of MCSA and NX Gold are translated into the US dollar presentation currency using the rate of exchange at the statement of financial position date while revenues and expenses are translated at the exchange rates approximating those in effect on the date of the transactions. Exchange gains and losses arising on translation are included in a separate component of shareholders’ equity. In preparing these financial statements, management has made judgments, estimates and assumptions that affect the application of the Company’s accounting policies and the reported amounts of the assets, liabilities, revenues and expenses. Actual results may differ from these estimates. The estimates and assumptions are reviewed on an ongoing basis. Revisions to estimates are recognized prospectively. Critical Judgments Functional currency The functional currency of the Company and each of its subsidiaries is the currency of the primary economic environment in which the entities operate. The Company has determined that the functional currency for the Company is the US dollar while the functional currency for MCSA and NX Gold is the Brazilian Real. Assessment of functional currency involves certain judgments 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. Legal claims and contingent liabilities The recognition of legal provisions and contingent liabilities involves the assessment of claims made against the Company and each of its subsidiaries. The recognition of a legal provision, or disclosure of a contingent liability, involves certain judgments to determine the probability of whether a cash outflow will occur. In making this judgment, management has assessed various criteria and also relies on the opinions of its legal advisers to assist in making this assessment. Key Sources of Estimation Uncertainty The preparation of financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of assets and liabilities at the date of the consolidated financial statements and the reported amounts of expenses during the reporting periods. Actual results could differ from those estimates and such differences could be significant. Significant estimates made by management affecting the consolidated financial statements include: Derivative instruments The fair value of derivative instruments is determined using either present value techniques or option pricing models that utilize a variety of inputs that are a combination of quoted prices and market-corroborated inputs, including assumptions for forward interest and foreign exchange rates, volatilities and discount rates. The fair value of the Company’s derivative contracts includes an adjustment for credit risk for either the Company or the counter party as applicable. Changes in the assumptions for inputs into the models affect the fair value of the derivatives recognized in the statement of financial position as well as the unrealized gains or losses recognized in net income. Mineral reserve and resource estimates including life of mine plan The Company estimates its mineral reserves and resources based on information compiled by competent individuals. Mineral reserves are used in the calculation of depreciation, impairment assessments, for forecasting the timing of payment of mine closure and rehabilitation costs, as well as amortization of deferred revenues. There are numerous uncertainties inherent in estimating mineral reserves, and assumptions that are valid at the time of estimation may change significantly when new information becomes available. Changes in the estimation methodology, forecasted prices of commodities, exchange rates, production costs or recovery rates may change the economic status of mineral reserves and may, ultimately, result in changes in the mineral reserves. The carrying amounts of the Company’s mineral, property, plant and equipment are depleted in part based on recoverable mineral reserve tonnes processed, depending on the use of the asset. Changes to estimates of recoverable quantities of metals, mineral reserve tonnes and depletable costs, including changes resulting from revisions to the Company’s mine plans and changes in metals prices forecasts, can result in a change to future depreciation and depletion rates, amortization of deferred revenue, and may also result in impairment charges on non-current assets. Mine closure and reclamation costs Significant estimates and assumptions are made in determining the provision for mine closure and reclamation costs as there are numerous factors that will affect the ultimate liability payable. These factors include estimation of the extent and cost of rehabilitation activities, timing of future cash flows, discount rates, inflation rate, and regulatory requirements. Changes in the above factors can result in a change to the provision recognized by the Company. Changes to mine closure and rehabilitation costs are recorded with a corresponding change to the carrying amounts of related mineral, property, plant and equipment. Adjustments to the carrying amounts of related mineral, property, plant and equipment can result in a change to future depreciation and depletion expense. Income taxes The determination of the Company’s tax expense for the period and deferred tax assets and liabilities involves significant estimation and judgment by management. In determining these amounts, 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. Management also makes estimates of future earnings, which affect the extent to which potential future tax benefits may be used. The Company is subject to assessments by various taxation authorities, which may interpret legislation differently. These differences may affect the final amount or the timing of the payment of taxes. The Company provides for such differences where known based on management’s best estimate of the probable outcome of these matters. The Company operates in Brazil where tax authorities may audit income tax treatments and the resolution of such audits may span multiple years. Tax law in Brazil is complex and often subject to changes and to varied interpretations; accordingly, the ultimate outcome with respect to income tax treatments may differ from the amounts recognized. The Company’s assessment of whether it is probable that uncertain income tax treatments will be accepted by tax authorities in Brazil is a significant management judgment. Deferred Revenue Judgment and estimates were required in determining the accounting for the precious metal purchase agreement with RGLD Gold AG, a subsidiary of Royal Gold Inc. (collectively "Royal Gold"), which is accounted for as deferred revenue in accordance with IFRS 15 Revenue from Contracts with Customers (“IFRS 15”). As the Company’s obligation under the precious metal purchase agreement will be satisfied through deliveries of a non-financial item (i.e. deliveries of gold ounces), rather than cash or other financial assets, it was determined to be entered into and continued to be held for the purpose of the delivery of a non-financial item in accordance with the Company’s expected sale or usage requirements and thus not within the scope of IFRS 9 Financial Instruments (“own use exemption”). The determination of whether the own use exemption applies requires management’s judgements. Each period management estimates the cumulative amount of the deferred revenue obligation that has been satisfied and, therefore, recognized as revenue. Key inputs into the estimate of the amount of deferred revenue that should be recognized include the following: a. Future gold prices are used to estimate the expected total consideration to be received under the contract including variable consideration and is used as the stand alone selling price to allocate the consideration to each ounce of gold to be delivered to Royal Gold, and b. Expected life of mine gold production and the timing thereof, which is estimated based on the approved life of mine for the NX Gold mine and the portion of mineral resources anticipated to be converted to mineral reserves. (e) New Accounting Policies, Standards and Interpretations Property, Plant and Equipment - Proceeds before Intended Use On May 14, 2020, the IASB published a narrow scope amendment to IAS 16 Property, Plant and Equipment - Proceeds before Intended Use . The amendment prohibits deducting from the cost of property, plant and equipment amounts received from selling items produced while preparing the asset for its intended use. Instead, amounts received will be recognized as sales proceeds and related cost in profit or loss. The effective date is for annual periods beginning on or after January 1, 2022, with early adoption permitted. The Company has elected to early adopt this standard in 2021, which did not have a material impact on its consolidated financial statements. (f) Future Changes in Accounting Policies Not Yet Effective as of December 31, 2021 The following amendment to accounting standards has been issued but not yet adopted in the financial statements: • In September 2019, the IASB issued first phase amendments IFRS 9 Financial Instruments , IAS 39 Financial Instruments: Recognition and Hedging , and IFRS 7 Financial Instrument Disclosures to address the financial reporting impact of the reform on interest rate benchmarks, such as the discontinuance of the interbank offered rates. Phase 2 of the Interest Rate Benchmark Reform refers to a global reform of interest rate benchmarks, which includes the replacement of some interbank offered rates (“LIBOR”) with alternative benchmark rates. Phase 2 amendments require the effective interest rate to be adjusted when accounting for changes in the basis for determining the contractual cash flows of financial assets and liabilities that relate directly to this reform rather than applying modification accounting. In addition, the Phase 2 amendments require disclosures to assist users in understanding the effect of the reform on the Company’s financial instruments and risk management strategy. At December 31, 2021, Company had a $150.0 million senior secured revolving credit facility, of which $50.0 million was drawn, which bears interest on a sliding scale at a rate of LIBOR plus 2.25% to 4.25% depending on the Company’s consolidated leverage ratio. The Company also maintained an interest rate swap • In May 2021, the IASB issued Deferred Tax related to Assets and Liabilities Arising from a Single Transaction which amended IAS 12, Income Taxes ("IAS 12") . |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies (a) Revenue Revenue relating to the sale of metals is recognized at the point the customer obtains control of the product and when the Company has satisfied its performance obligations. Control is transferred when title has passed to the purchaser, the product is physically delivered to the customer, the customer controls the risks and rewards of ownership and the Company has a present right to payment for the product, which is generally when the concentrate or doré is delivered to a location designated by the customer, or when gold credits are transferred to the customer. The sales amount is typically based on quoted market and contractual prices which are fixed at the time the shipment is received at the customers’ premises. In certain circumstances the sales price of metals in concentrate may be determined in a period subsequent to the date of sale (provisionally priced sales) based on the terms of specific copper concentrate contracts. Provisionally priced sales are recognized based on an estimate of metal contained using forward market prices corresponding with the expected date that final sales prices will be fixed. The period between provisional pricing and final settlement can be up to one month. The settlement receivable is recorded at fair value each reporting period by reference to forward market prices until the date of final pricing, with the changes in fair value recorded as an adjustment to revenue. Deferred Revenue (note 11) In August 2021, the Company received an upfront cash deposit in connection with a precious metal purchase agreement with Royal Gold, which is accounted for as deferred revenue in accordance with IFRS 15. Deferred revenue consists of payments received by the Company in consideration for future commitments to deliver an amount of gold equivalent to a percentage of the gold produced from its NX Gold operations. As gold deliveries are made, the Company recognizes a portion of the deferred revenue as revenue, calculated on a per unit basis using the total number of gold ounces expected to be delivered over the life of the mine. The current portion of deferred revenue is based on deliveries anticipated over the next twelve months. Interest expense on deferred revenue is recognized in finance costs as there is a significant financing component related to the precious metal purchase agreement, resulting from a difference in the timing of the upfront consideration received and delivery of the gold. The interest rate is determined based on the rate implicit in the precious metal purchase agreement at the date of inception. Revenue to be recognized from the initial consideration received from the precious metal purchase agreement is considered variable, subject to changes in the total gold ounces to be delivered. Changes to variable consideration are reflected in revenue in profit or loss. The additional consideration to be received under the precious metal purchase agreement is considered variable, subject to changes in the total estimated gold ounces to be delivered and gold prices. Changes to variable consideration are accounted for prospectively as a cumulative catch-up and are recorded in revenue in profit or loss. (b) Tax Incentives The Company receives certain tax incentives in Brazil. These tax incentives are recognized in profit or loss in the period the incentives are received or receivable and recorded against the expenditure that they are intended to compensate. (c) Finance Income and Finance Expense Finance income includes interest on cash and cash equivalents, restricted cash and financial investments, and gains related to changes in the fair value of financial assets measured at fair value through profit or loss. Interest income is recognized as it accrues in profit or loss, using the effective interest method. Finance expense comprises of interest expense on loans and borrowings, accretion expense on provisions, leases and deferred revenue, commitment fees and losses related to changes in the fair value of financial assets measured at fair value through profit or loss. Borrowing costs that are not directly attributable to the acquisition, construction or production of a qualifying asset are recognized in profit or loss using the effective interest method. (d) Employee Benefits Short-term employee benefit obligations are recognized as personnel expenses as the corresponding service is provided. Liabilities are recognized at the amount that is expected to be paid if the Company has a present legal or constructive obligation to pay that amount based on past services rendered by the employee, and the obligation can be estimated reliably. There are no long-term employee benefit plans. (e) Taxation Income tax expense comprises current and deferred tax. Current income 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. Deferred income 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 income tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on the tax laws that have been enacted or substantively enacted at the reporting date. Deferred income 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. Deferred income tax is not recognized for the initial recognition of assets or liabilities in a transaction that is not a business combination and that effects neither accounting nor taxable income or loss, differences related to investments in subsidiaries to the extent that it is probable that they will not reverse in the foreseeable future and taxable differences arising from the initial recognition of goodwill. A deferred income 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 income 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. Uncertainties over income tax treatments are evaluated on the basis of whether it is probable that they will be accepted upon examination by the relevant taxing authorities in Brazil. These uncertainties impact the amount of income taxes recognized. If it is determined that an uncertain income tax treatment is not probable of being accepted, the effect of the uncertain income tax treatment is reflected in the determination of income taxes based the most likely amount or, if there are a wide range of possible outcomes, the expected value. (f) Inventories Inventories are measured at the lower of cost and net realizable value. The cost of consumable inventory is determined on a weighted average acquisition cost basis. Cost of stockpile inventory, products in progress and finished goods is determined based on a weighted average production cost basis and includes the cost of mining and processing ore including direct labour and materials; depreciation and amortization; and an appropriate share of production overheads based on normal operating capacity. Net realizable value of stockpile inventory, products in progress and finished goods is the estimated selling price in the ordinary course of business, less estimated completion costs and selling expenses. Write-downs of inventories to net realizable value are included in the cost of sales in the period of the write-down. A write-down of inventories is reversed in a subsequent period if there is a subsequent increase in the net realizable value of the related inventories. Provisions for low turnover or obsolete supplies and consumables inventory are established by management as deemed necessary and is included in cost of sales. (g) Mineral, Property, Plant and Equipment Mineral, property, plant and equipment is measured at acquisition or construction cost, including capitalized borrowing costs, less accumulated depreciation and accumulated impairment losses. (i) Acquisition and disposal The cost of mineral, property, plant and equipment include expenditures directly attributable to an asset’s acquisition. The cost of assets constructed by Company includes the cost of materials and direct labor, any other costs to bring the asset in the place and conditions required to be operated in the manner intended by management, costs of disassembly and restoration of the site and borrowing costs on qualifying assets. When parts of mineral, property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of mineral, property, plant and equipment. Gains and losses on disposal of mineral, property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of equipment and are recognized net within other income. (ii) Subsequent costs The cost of replacing plant and equipment is recognized in the carrying amount of the item if it is probable that the future economic benefits embodied within the item will flow to the Company and its cost can be measured reliably. The carrying amount of the replaced item is derecognized. The maintenance service costs of equipment are included in profit or loss. (iii) Development and construction-in-progress When economically viable mineral reserves have been determined and the decision to proceed with development has been approved, exploration and evaluation assets are first assessed for impairment, then reclassified to construction-in-progress or mineral properties. The expenditures related to development and construction are capitalized as construction-in-progress and are included within mineral, property, plant and equipment. Construction-in-progress includes the purchase price and any costs directly attributable to bringing the asset to the location and condition necessary for its intended use including advances on long-lead items. Construction-in-progress is not depreciated. Once an asset is available for use, construction-in-progress costs are reclassified to mineral properties or plant and equipment. the underground mines are capitalized as pre-production stripping or development costs respectively and are included within mineral, property, plant and equipment. (iv) Mineral properties Mineral properties consist of the cost of acquiring and developing mineral properties. Once in production, mineral properties are amortized on a units-of-production basis over the component of the ore body to which they relate. (v) Stripping costs and development in the production phase Where open pit production stripping or underground development activities do not result in inventory produced, but does provide improved access to the ore body, the costs are classified as mineral properties when these activities meet all of the following criteria: (1) it is probable that the future economic benefit associated with the activity will flow to the Company; (2) the Company can estimate the mineral reserve of the ore body for which access has been improved; and (3) the costs relating to the activity associated with that mineral reserve can be measured reliably. For underground mines, costs incurred to access a mineral reserve of the ore body are capitalized to mineral properties or construction-in-progress and are depreciated on a units-of-production basis over the expected useful life of the identified mineral reserve of the ore body to which access has been improved as a result of the development activity. For open pit mines, stripping costs above average life of mine strip ratio (waste/ore) are capitalized to mineral properties or construction-in-progress and are depreciated over the related mineral reserves accessed by the stripping activity. (vi) Mine closure and rehabilitation costs The Company’s provision for mine closure and rehabilitation liabilities represents management’s best estimate of the present value of the future cash outflows required to settle estimated reclamation and closure costs at the end of a mine’s life. The provision reflects estimates of future costs, inflation, movements in foreign exchange rates and assumptions of risks associated with the future cash outflows, and the applicable risk-free interest rates for discounting the future cash outflows. Changes in the above factors can result in a change to the provision recognized by the Company. (vii) Depreciation Items of mineral, property, plant and equipment are depreciated on a straight-line method based on the estimated economic useful life of each component as follows: Buildings Lessor of life of mine or up to 25 years Mining equipment 4 years Mobile equipment & other assets 5 years Mineral properties Units of production Mine closure and rehabilitation costs Units of production or period until remediation Right of use assets Shorter of the term of lease and life of asset The depletion of mineral, properties and mine closure and rehabilitation costs is determined based on the ratio of tonnes of copper/kg of gold contained in the ore mined and total proven and probable mineral reserve tonnes of contained copper/kg of contained gold. Depreciation methods, useful lives and residual values are reviewed at each financial year end and adjusted if appropriate. (h) Exploration and Evaluation Assets Exploration and evaluation costs relate to the initial search for a mineral deposit, the cost of acquisition of a mineral property interest or exploration rights and the subsequent evaluation to determine the economic potential of the mineral deposit. The exploration and evaluation stage commences when the Company obtains the legal right or license to begin exploration. Once the legal rights or license is obtained, exploration and evaluation expenses are capitalized as exploration and evaluation assets. Costs incurred prior to the Company obtaining the legal rights are expensed. When the exploration and evaluation of a mineral property indicates that development of the mineral property is technically and commercially feasible, the future economic benefits are probable, and the Company has the intention and sufficient resources to complete the development and use or sell the asset, the related costs are transferred from exploration and evaluation assets to mineral property, plant and equipment. Management reviews the carrying value of capitalized exploration costs for indicators that the carrying value is impaired at least annually and when facts and circumstances suggest that the carrying amount may exceed the recoverable amount. The review is based on the Company’s intentions for further exploration and development of the undeveloped property, results of drilling, commodity prices and other economic and geological factors. Subsequent recovery of the resulting carrying value depends on successful development or sale of the undeveloped project. If a property does not prove viable, all non-recoverable costs associated with the project, net of any previous impairment provisions, are written off. (i) Financial Instruments Non-derivative financial assets The Company classifies its financial assets in the following categories: at fair value through profit or loss (“FVTPL”), at fair value through other comprehensive income (“FVTOCI”) or at amortized cost. The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of its financial assets at initial recognition. Measurement and classification of financial assets is dependent on the Company’s business model for managing the financial assets and the contractual cash flow characteristics of the financial asset. Financial assets are derecognized when they mature or are sold, and substantially all the risks and rewards of ownership have been transferred. Fair values A number of the Company’s accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities. When measuring the fair value of an asset or liability, the Company uses observable market data, as much as possible. Fair values are classified into different levels in a hierarchy based on the inputs used in the valuation techniques, as follows: • Level 1 : quoted prices (without adjustments) in active markets for identical assets or liabilities. • Level 2 : inputs other than Level 1 quoted prices, that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). • Level 3 : inputs, for assets or liabilities, that are not based on observable market information (non-observable inputs). The Company recognizes transfers between levels of the hierarchy of fair value at the end of the reporting period during which the change occurred. When applicable, additional information on the assumptions used in the fair value calculations are disclosed in the specific notes of the corresponding asset or liability. Financial assets at FVTPL Financial assets carried at FVTPL are initially recorded at fair value and transaction costs are expensed in the income statement. Realized and unrealized gains and losses arising from changes in the fair value of the financial asset held at FVTPL are included in profit or loss in the period in which they arise. Derivatives are also categorized as FVTPL unless they are designated as hedges. Financial assets at FVTOCI Investments in equity instruments at FVTOCI are initially recognized at fair value plus transaction costs. Subsequently they are measured at fair value, with gains and losses arising from changes in fair value recognized in other comprehensive income. Gains or losses on financial assets classified as FVTOCI remain within accumulated other comprehensive income following the derecognition of the investment. Financial assets at amortized cost Financial assets at amortized cost are initially recognized at fair value and subsequently carried at amortized cost less any impairment. They are classified as current assets or non-current assets based on their maturity date. Gains and losses on derecognition of financial assets classified amortized cost are recognized in profit or loss. Financial liabilities Financial liabilities are recognized initially at fair value, net of transaction costs incurred, and are subsequently measured at amortized cost. Any difference between the amounts originally received, net of transaction costs, and the redemption value is recognized in profit and loss over the period to maturity using the effective interest method. Derivative instruments Derivative instruments, including embedded derivatives in executory contracts or financial liability contracts, are classified as at FVTPL and, accordingly, are recorded in the statement of financial position at fair value. Unrealized gains and losses on derivatives not designated in a hedging relationship are recorded as part of the revenue or expense item to which the derivative relates, depending on the nature of the derivative. Fair values for derivative instruments are determined using inputs based on market conditions existing at the balance sheet date or settlement date of the derivative. Derivatives embedded in non-derivative contracts are recognized separately unless they are closely related to the host contract. Compound instruments Equity components of compound instruments, such as convertible debt, are separated from the debt host contract using the residual method. The Company determines the fair value of the debt component by discounting the expected principal and interest payments using an appropriate discount rate reflective of debt instruments with similar risks but without the equity component. The difference between the proceeds received and the amount assigned to the debt component is allocated to the equity component. Share capital Common shares are classified as equity. Incremental costs directly attributable to the issuance of common shares and share options are recognized as a deduction from equity, net of any tax effects. The Company includes the value of share purchase warrants included in the issuance of equity units, which consist of common shares and warrants, in share capital. Classification and measurement The Company has assessed the classification and measurement of its financial assets and financial liabilities under IFRS 9 in the following table: Measurement Category Financial Assets Cash and cash equivalents Amortized Cost Trade receivables related to provisional priced sales Fair value through profit or loss Other receivables Amortized Cost Deposits Amortized Cost Financial Liabilities Trade payables Amortized Cost Loans and borrowings Amortized Cost Derivatives Fair value through profit or loss Cash and cash equivalents and deposits Cash is comprised of cash on hand and demand deposits. Cash equivalents and deposits are short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of change in fair value. Trade receivables Trade receivables relate to amounts receivable from sales with fixed or determinable payments that are not quoted in an active market. These receivables are non-interest bearing and are recognized at face amount, except when fair value is materially different, and are subsequently measured at amortized cost. Trade receivables recorded are net of lifetime expected credit losses. (j) Impairment i) Financial assets The Company recognizes a loss allowance for expected credit losses on financial assets that are measured at amortized cost. At each reporting date, the loss allowance for the financial asset is measured at an amount equal to the lifetime expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition. If at the reporting date, the financial asset has not increased significantly since initial recognition, the loss allowance is measured for the financial asset at an amount equal to twelve months’ expected credit losses. For trade receivables the Company applies the simplified approach to providing for expected credit losses, which allows the use of a lifetime expected loss provision. Impairment losses on financial assets carried at amortized cost are reversed in subsequent periods if the amount of the loss decreases and the decrease can be objectively related to an event occurring after the impairment was recognized. The expected lifetime credit loss provision for trade receivables is based on historical counterparty default rates and adjusted for relevant forward-looking information, when required. As the Company’s five primary significant customers are considered to have a low default rate and historical default rates are low, the lifetime expected credit loss allowance for trade receivables is nominal as at December 31, 2021. Accordingly, the Company did not record a provision for expected credit losses for trade receivables. ii) Non-Financial assets At each reporting date, the carrying amounts of the Company’s mineral, property, plant and equipment and exploration and evaluation assets are reviewed to determine whether there is any indication that those assets are impaired. If such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment, if any. The recoverable amount is the higher of fair value less costs to sell and value in use, which is the present value of future cash flows expected to be derived from the asset or its related cash generating unit. For purposes of impairment testing, assets are grouped at the lowest levels that generate cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the “cash-generating unit”). If the recoverable amount of an asset or cash-generating unit is estimated to be less than its carrying amount, the carrying amount of the associated assets are reduced to their recoverable amount and the impairment loss is recognized in the profit or loss for the period. Impairment losses recognized in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment charge is reversed through profit or loss only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of any applicable depreciation, if no impairment loss had been recognized. (k) Provisions i) Mine closure and rehabilitation provision The Company records the present value of estimated costs of legal and constructive obligations related to mine closure and rehabilitation in the period in which the obligation occurs. Mine closure and rehabilitation activities include facility decommissioning and dismantling; removal and treatment of waste materials; site and land rehabilitation, including compliance with and monitoring of environmental regulations; and related costs required to perform this work and/or operate equipment designed to reduce or eliminate environmental effects. The provision is adjusted each period for new disturbances, and changes in regulatory requirements, the estimated amount of future cash flows required to discharge the obligation, the timing of such cash flows and the pre-tax discount rate specific to the liability. The unwinding of the discount is recognized in profit or loss as a finance expense. When the provision is initially recognized, the corresponding cost is included in the carrying amount of the related asset and is amortized to profit or loss on a unit-of-production basis. ii) Other provisions Other provisions are recognized, based on a past event, when the Company has a legal or constructive obligation that can be estimated reliably, and it is probable that an economic mineral resource will be required to settle the obligation. Provisions are measured by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and specific risks for the liability. The discount is unwound over the period over which the cash flows are expected to be incurred with the related expense included in finance expense. (l) Share-Based Compensation The grant date fair value of equity settled share-based payment awards granted to employees and consultants, including directors and officers, is recognized as share-based compensation, with a corresponding increase in equity, over the period that the optionee unconditionally become entitled to the awards. The amount recognized as an expense is adjusted to reflect the number of awards for which the related service and non-market vesting conditions are expected to be performed or satisfied such that the amount ultimately recognized as an expense is based on the number of awards that meet the related service and non-market performance conditions at the vesting date. Performance share units and deferred share units are liability awards settled in cash and measured at the quoted market price at the grant date with the corresponding expense recognized over the period that the employees unconditionally become entitled to the awards. The corresponding liability is adjusted for changes in fair value at each subsequent reporting date until the awards are settled. (m) Leases A contract is or contains a lease when the contract conveys a right to control the use of an identified asset for a period of time in exchange for consideration. The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, and subsequently at cost less any accumulated depreciation and impairment losses, and adjusted for certain re-measurements of the lease liability. The cost of the right-of-use asset includes the amount of the initial measurement of the lease liability, any lease payments made at or before the commencement date, less any lease incentives received, any initial direct costs; and if applicable, an estimate of costs to be incurred by the Company in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate. The incremental borrowing rate reflects the rate of interest that the lessee would have to pay to borrow the funds necessary to obtain an asset of similar value in a similar economic environment with similar terms and conditions. Generally, the Company uses its incremental borrowing rate as the discount rate. The lease liability is subsequently increased by the interest cost on the lease liability and decreased by lease payments made. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, a change in the estimate of the amount expected to be payable under a residual value guarantee, or as appropriate, changes in the assessment of whether a purchase or extension option is reasonably certain to be exercised or a termination option is reasonably certain not to be exercised. The Company does not recognize right-of-use assets and lease liabilities for leases of low-value assets and leases with lease terms that are less than 12 months. Lease payments associated with these leases are instead recognized as an expense over the lease term on either a straight-line basis, or another systematic basis if more representative of the pattern of benefit. The Company has applied judgement to determine the lease term for some lease contracts in which it is a lessee that include renewal options. The assessment of whether the Company is reasonably certain to exercise such options impacts the lease term, which significantly affects the amount of lease liabilities and right-of-use assets recognized. (n) Income per Share Basic income per share is calculated by dividing the net income attributable to common shareholders of the Company by the weighted average number of common shares outstanding during the period. Diluted income per common share is calculated by adjusting the weighted average number of common shares outstanding for the effect of conversion of all potentially dilutive share equivalents, such as stock options, share units and warrants. The dilutive effect of share options and warrants assumes that the receipt of proceeds upon exercise of the options are used to repurchase common shares at the average market price during the period. The net effect of the shares issued less the shares assumed to be repurchased is added to the basic weighted average shares outstanding. For convertible instruments, the common shares to be included in the diluted per share calculation assumes that the instrument is converted at the beginning of the period (or the issue date if later). For equity-settled share units (as defined herein, see note 14(d)), the common shares to be included in the diluted per share calculation is based on the number of shares that would be issuable if the reporting date were the end of the vesting period. The net income attributable to common shareholders is adjusted to eliminate related interest costs of dilutive securities recognized in net income for the period. (o) Business combinations The Company applies the acquisition method to account for business combinations. The consideration transferred by the Company to obtain control of a subsidiary is calculated as the sum of the acquisition-date fair values of assets transferred, liabilities assumed and the equity interests issued by the Company, which includes the fair value of any asset or liability arising from a contingent consideration arrangement. Acquisition costs are expensed as incurred. The Company recognizes identifiable assets acquired and liabilities assumed in a business combination regardless of whether they have been previously recognized in the acquiree’s financial statements prior to the acquisition. Assets acquired and liabilities assumed are gen |
Segment Disclosure
Segment Disclosure | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of operating segments [abstract] | |
Segment Disclosure | Segment Disclosure Operating segments are determined by the way information is reported and used by the Company's Chief Operating Decision Maker ("CODM") to review operating performance. The Company’s reporting segments include its two operating mines in Brazil, MCSA and NX Gold, and its corporate head office in Canada. The Company monitors the operating results of its operating segments independently for the purpose of making decisions about resource allocation and performance assessment. Significant information relating to the Company's reportable segments is summarized in the tables below: Year ended December 31, 2021 MCSA NX Gold Corporate (Canada) Consolidated Revenue $ 423,954 $ 65,961 $ — $ 489,915 Cost of production (96,975) (19,837) — (116,812) Depreciation and depletion (39,202) (7,800) — (47,002) Sales expense (6,726) (517) (7,243) Cost of sales (142,903) (28,154) — (171,057) Gross profit 281,051 37,807 — 318,858 Expenses General and administrative (20,444) (2,560) (15,842) (38,846) Share-based compensation — — (7,848) (7,848) Finance income 1,031 1,092 868 2,991 Finance expenses (5,622) (889) (5,648) (12,159) Foreign exchange loss (21,225) (360) (383) (21,968) NX Gold PMPA transaction fees — (1,219) — (1,219) Other expenses (2,382) (507) — (2,889) Income (loss) before taxes 232,409 33,364 (28,853) 236,920 Current tax expense (15,087) (4,406) (2,935) (22,428) Deferred tax expense (11,482) (378) — (11,860) Net income (loss) $ 205,840 $ 28,580 $ (31,788) $ 202,632 Assets Current $ 152,703 $ 35,734 $ 20,249 208,686 Non-current 435,265 45,791 20 481,076 Total Assets $ 587,968 $ 81,525 $ 20,269 $ 689,762 Total Liabilities $ 116,905 $ 109,679 $ 67,688 294,272 During the year ended December 31, 2021, MCSA had three customers (2020 - two) while NX Gold had two customers (2020 - one). Year ended December 31, 2020 MCSA NX Gold Corporate (Canada) Consolidated Revenue $ 260,888 $ 63,188 $ — $ 324,076 Cost of production (73,893) (17,480) — (91,373) Depreciation and depletion (35,674) (3,538) — (39,212) Sales expenses (4,937) (417) — (5,354) Cost of sales (114,504) (21,435) — (135,939) Gross profit 146,384 41,753 — 188,137 Expenses General and administrative (16,471) (1,712) (9,744) (27,927) Share-based compensation — — (9,064) (9,064) Finance income 430 143 773 1,346 Finance expenses (5,789) (805) (8,855) (15,449) Foreign exchange loss (77,235) (2,563) (7) (79,805) Recovery of value added taxes 7,564 1,322 — 8,886 Other expenses (3,825) (876) — (4,701) Income (loss) before income taxes 51,058 37,262 (26,897) 61,423 Current tax expense (5,117) (4,558) — (9,675) Deferred tax recovery 418 332 — 750 Net income (loss) $ 46,359 $ 33,036 $ (26,897) $ 52,498 Assets Current $ 72,080 $ 31,516 $ 23,945 127,541 Non-current 340,487 26,364 2,707 369,558 Total Assets $ 412,567 $ 57,880 $ 26,652 $ 497,099 Total Liabilities $ 102,789 $ 19,467 $ 160,768 283,024 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2021 | |
Inventory [Abstract] | |
Inventories | Inventories December 31, 2021 December 31, 2020 Supplies and consumables $ 19,144 $ 15,619 Stockpiles 2,880 3,569 Work in progress 1,658 5,234 Finished goods 2,337 1,074 $ 26,019 $ 25,496 |
Other Current Assets
Other Current Assets | 12 Months Ended |
Dec. 31, 2021 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Other Current Assets | Other Current Assets December 31, 2021 December 31, 2020 Advances to suppliers $ 402 $ 500 Prepaid expenses 5,865 2,635 Advances to employees 458 2,091 Value added taxes recoverable (1) 15,109 13,958 $ 21,834 $ 19,184 (1) During the year ended December 31, 2020, the Company recognized a recovery of $8.9 million in net income related to value added taxes based on the tax treatment applicable to depletion charges. This recovery during 2020 was recognized as a result of a study conducted to revisit certain tax positions, which concluded that it is probable that additional tax credits are available to be used to offset a variety of taxes. No additional value added tax recoveries were recognized in 2021. |
Mineral, Property, Plant and Eq
Mineral, Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property, plant and equipment [abstract] | |
Mineral, Property, Plant and Equipment | Mineral, Property, Plant and Equipment Buildings Mining Equipment Mineral Projects in Equipment & Other Assets Mine Closure Costs Right-of-Use Assets Total Cost: Balance, December 31, 2019 $ 17,609 $ 103,175 $ 261,392 $ 52,705 $ 9,481 $ 14,107 $ 7,231 $ 465,700 Additions 54 10,515 6,747 81,332 18,942 197 2,982 120,769 Disposals — (16,671) — (80) (522) (3,803) (291) (21,367) Transfers 1,546 19,940 56,346 (64,888) (12,958) — 14 — Foreign exchange (4,327) (24,257) (59,173) (12,297) (2,139) (2,965) (1,614) (106,772) Balance, December 31, 2020 14,882 92,702 265,312 56,772 12,804 7,536 8,322 458,330 Additions 19 7,538 7,580 130,821 26,826 5,162 10,425 188,371 Disposals — (1,004) — (1,821) (10) — (575) (3,410) Transfers 4,626 33,217 74,951 (94,599) (18,195) — — — Foreign exchange (1,175) (7,678) (20,942) (4,867) (1,118) (688) (874) (37,342) Balance, December 31, 2021 $ 18,352 $ 124,775 $ 326,901 $ 86,306 $ 20,307 $ 12,010 $ 17,298 $ 605,949 Accumulated depreciation: Balance, December 31, 2019 $ (4,047) $ (25,599) $ (85,293) $ — $ (4,572) $ (2,958) $ (3,715) $ (126,184) Depreciation expense (785) (10,882) (24,597) — (1,317) (1,029) (3,865) $ (42,475) Disposals — 14,999 — — 446 — 168 $ 15,613 Foreign exchange 916 5,827 19,351 — 860 672 792 $ 28,418 Balance, December 31, 2020 (3,916) (15,655) (90,539) — (4,583) (3,315) (6,620) (124,628) Depreciation expense (808) (12,664) (26,475) — (1,489) (985) (4,869) (47,290) Disposals — 913 — — 3 — 413 1,329 Foreign exchange 296 1,463 7,125 — 336 260 588 10,068 Balance, December 31, 2021 $ (4,428) $ (25,943) $ (109,889) $ — $ (5,733) $ (4,040) $ (10,488) $ (160,521) Net book value, December 31, 2020 $ 10,966 $ 77,047 $ 174,773 $ 56,772 $ 8,221 $ 4,221 $ 1,702 $ 333,702 Net book value, December 31, 2021 $ 13,924 $ 98,832 $ 217,012 $ 86,306 $ 14,574 $ 7,970 $ 6,810 $ 445,428 |
Exploration and Evaluation Asse
Exploration and Evaluation Assets | 12 Months Ended |
Dec. 31, 2021 | |
Exploration For And Evaluation Of Mineral Resources [Abstract] | |
Exploration and Evaluation Assets | Exploration and Evaluation Assets Exploration and evaluation assets relate primarily to the Boa Esperança development project located in Tucumã, State of Pará, Brazil. Subsequent to December 31, 2021 , the Company’s board of directors approved construction of the project and accordingly the project will be reclassified as Projects in Progress. |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities December 31, 2021 December 31, 2020 Trade suppliers $ 24,012 $ 14,480 Payroll and labour related liabilities 26,248 17,914 Value added tax and other tax payable 9,664 9,365 Other accrued liabilities 6,622 5,484 $ 66,546 $ 47,243 |
Loans and Borrowings
Loans and Borrowings | 12 Months Ended |
Dec. 31, 2021 | |
Financial Instruments [Abstract] | |
Loans and Borrowings | Loans and Borrowings Carrying value, Description Denomination Security Time to Coupon rate Principal to be repaid December 31, December 31, Senior credit facility USD Secured 39 months LIBOR + 2.25% - 4.25% $ 50,000 $ 48,303 $ 148,386 Equipment finance loans USD Secured 5 months - 48 months 5.00% - 7.95% 5,759 5,805 5,605 Equipment finance loans EURO Secured 6 months - 54 months 5.50% - 7.00% 2,005 2,005 1,791 Bank loan (MCSA) BRL Unsecured 59 months CDI + 0.50% 3,458 3,137 3,980 Line of credit (MCSA) BRL Unsecured 0 CDI + 9.00% — — 1,447 Lines of credit (MCSA) BRL Unsecured 0 8.60% - 14.30% — — 4,221 Equipment finance loan (Plural) BRL Secured 0 CDI + 7.00% — — 1,065 Equipment finance loans BRL Secured 0 11.88% - 16.49% — — 1,607 Total $ 61,222 $ 59,250 $ 168,102 Current portion $ 4,344 $ 12,539 Non-current portion $ 54,906 $ 155,563 The movements in loans and borrowings during the years ended December 31, 2021 and 2020 are comprised of the following: December 31, 2021 December 31, 2020 Balance, beginning of year $ 168,102 $ 159,370 Proceeds from new senior revolving credit facility, net — 13,652 Proceeds from new equipment finance loans 4,826 19,278 Proceeds from new lines of credit 645 36,726 Principal and interest payments (117,404) (67,118) Interest expenses 5,177 9,921 Foreign exchange (2,096) (3,727) Balance, end of year $ 59,250 $ 168,102 (a) Senior Credit Facility At December 31, 2020, the Company had a $150.0 million credit facility from a syndicate of Canadian financial institutions. The credit facility was comprised of $75.0 million in senior secured non-revolving credit facility (“Term Facility”) and a $75.0 million senior secured revolving credit facility (“Revolving Credit Facility”) (collectively, the "Old Facilities). The Term Facility was to mature on March 31, 2024 and required principal repayments on a quarterly basis commencing on March 31, 2022, while the Revolving Credit Facility was payable in full at maturity on March 31, 2024. The Old Facilities bore interest on a sliding scale at a rate of LIBOR plus 2.50% to 4.25%, depending on the Company’s consolidated leverage ratio. During the year ended December 31, 2021 , the Old Facilities were amended and combined into a new $150.0 million senior secured revolving credit facility (“New Revolving Credit Facility”) with maturity date of March 31, 2025. The New Revolving Credit Facility bears interest on a sliding scale at a rate of LIBOR plus 2.25% to 4.25% depending on the Company’s consolidated leverage ratio. Commitment fees for any undrawn portion of the New Revolving Credit Facility are on a sliding scale between 0.56% to 1.06%. During the year ended December 31, 2021, the Company also paid down the New Revolving Credit Facility by $100.0 million with $50.0 million remaining outstanding as at December 31, 2021. The Company has an interest rate swap arrangement whereby floating interest on $50.0 million ( 2020 - $50.0 million) of the New Revolving Credit Facility was swapped for a fixed interest rate of 1.68% ( 2020 - 2.69%) . The interest rate swap arrangement is in effect until March 31, 2025. Subsequent to year end, pursuant to completion of an offering of $400.0 million in Senior Notes (note 26 ), the Company repaid the outstanding $50.0 million balance of the New Revolving Credit Facility and settled the interest rate swap arrangement for nominal consideration. The New Revolving Credit Facility was further amended to reduce its limit from $150.0 million to $75.0 million, with an accordion option to increase to $100.0 million at the election of the Company. The New Revolving Credit Facility is secured by pledges of shares of MCSA, NX Gold and Ero Gold. The Company is required to comply with certain financial covenants. As December 31, 2021, the Company is in compliance with these covenants. (b) Bank Loan and Equipment Finance Loans The MCSA bank loan was recognized at fair value when the Company acquired MCSA and has subsequently been measured at amortized cost, net of settlements. Interest is being recognized using the effective interest rate method at an interest rate of 11.50%. MCSA is subject to certain financial covenants which the Company is in compliance with at December 31, 2021. The equipment finance loans are secured by the corresponding equipment relating to them and a guarantee by the Company. At December 31, 2020, MCSA had entered into an equipment finance loan with Plural Bank for BRL $12.0 million for a term of 24 months and at an interest rate of 7% + CDI per annum. MCSA had also entered into an interest rate swap transaction and a foreign exchange swap transaction with Plural Bank related to this loan whereby the floating interest of 7% + CDI on a notional amount of BRL $12.0 million was swapped for a fixed interest rate of 9.90%, and a notional principal amount of BRL $12.0 million was swapped for the USD currency at a foreign exchange rate of 3.9500. This loan was repaid during the year ended December 31, 2021 and the interest rate and foreign currency swap contracts terminated. (c) MCSA and NX Gold Lines of Credit As at December 31, 2020 , the Company’s subsidiaries, MCSA and NX Gold, had entered into various lines of credit for a total amount of BRL $154.6 million of which BRL $21.8 million ($4.2 million) was outstanding. These credit facilities bore interest at various rates ranging from 9.60% to 24.34%. During the year ended December 31, 2021, the Company’s subsidiaries, MCSA and NX Gold, terminated all remaining available credit facilities. During the year ended December 31, 2020, the Company repaid BRL $162.2 million on various lines of credit entered into in the years ended December 31, 2020 and 2019. (d) Debt Repayments Repayments of the principal portion of loans and borrowings is as follows: December 31, 2021 2022 (1) 54,282 2023 2,917 2024 1,602 2025 1,615 2026 and beyond 806 $ 61,222 (1) Includes $50.0 million of the New Revolving Credit Facility repaid in February 2022 which does not mature until March 31, 2025. |
Deferred Revenue
Deferred Revenue | 12 Months Ended |
Dec. 31, 2021 | |
Revenue From Contracts With Customers [Abstract] | |
Deferred Revenue | Deferred Revenue In August 2021, the Company completed the closing of a precious metals purchase agreement (the “NX Gold PMPA”) with Royal Gold in relation to gold production from the NX Gold mine. The Company received upfront cash consideration of $100.0 million for the purchase of 25% of an equivalent amount of gold to be produced from the NX Gold mine until 93,000 ounces of gold have been delivered and thereafter decreasing to 10% of gold produced over the remaining life of the mine. Royal Gold will make ongoing payments equal to 20% of the then prevailing spot gold price for each ounce of gold delivered until 49,000 ounces of gold have been received and 40% of the prevailing spot gold price for each ounce of gold delivered thereafter. Additional payment obligations of Royal Gold include: i. Up to US$5 million, available through the end of 2024, payable based upon the number of ounces of gold added to the Measured and Indicated mineral resource categories as compared to the mineral resources as of the effective date of the NX Gold Transaction at a rate of US$20 per ounce; ii. Up to US$5 million, available from 2022 through the end of 2024, payable based upon completion of planned meters of drilling within the exploration concessions of the NX Gold mine at a rate of US$100 per meter; and, iii. US$5 per ounce of gold delivered under the NX Gold Transaction payable to the Company as contribution towards ongoing environmental, social and governance initiatives within the area of influence of the mine. The contract will be settled by the Company delivering gold to Royal Gold. The $100.0 million upfront proceeds from Royal Gold has been recognized as deferred revenue and the Company recognizes amounts in revenue as gold is delivered. Each period, management estimates the cumulative amount of the deferred revenue obligation that has been satisfied and, therefore, recognized as revenue. Key inputs into the estimate at closing of the transaction included an estimated long-term gold price of $1,750 per ounce and a life of mine production schedule for the NX Gold mine that includes mineral reserves and a portion of the mineral resources. During the year ended December 31, 2021, the Company delivered 5,173 ounces of gold to Royal Gold for average consideration of $353 per ounce and recognized $7.3 million in amortization of deferred revenue. As at December 31, 2021, the aggregate carrying value of deferred revenue was $94.2 million, of which $10.5 million was classified as current and $83.7 million was classified as non-current. As part of the NX Gold PMPA, the Company incurred $1.2 million in transaction fees during the year ended December 31, 2021. In addition, the Company pledged its equity interest in Ero Gold and NX Gold to Royal Gold as collateral and provided unsecured limited recourse guarantees from Ero and NX Gold. |
Provision for rehabilitation an
Provision for rehabilitation and closure costs | 12 Months Ended |
Dec. 31, 2021 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
Provision for rehabilitation and closure costs | Provision for rehabilitation and closure costs December 31, 2021 December 31, 2020 Balance, beginning of year 18,970 $ 30,197 Change in estimates 2,225 (3,803) Accretion expense 1,077 902 Settled (2,039) (1,585) Foreign exchange (1,196) (6,741) Balance, end of year $ 19,037 18,970 Provision for rehabilitation and closure costs is measured using management’s assumptions and estimates for future cash outflows in relation to mine closure and rehabilitation activities based on known disturbances as at the reporting date, known legal requirements and cost estimates prepared by a third-party specialist. |
Other Non-current Liabilities
Other Non-current Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Other Non-current Liabilities | Other Non-current Liabilities December 31, 2021 December 31, 2020 Cash-settled equity awards (Note 14(b) and (c)) $ 2,524 $ — Value added tax and other taxes payable 861 1,299 Income taxes payable 2,935 169 Provision for legal and tax matters 2,331 2,480 Other liabilities 2,542 1,666 $ 11,193 $ 5,614 |
Share Capital
Share Capital | 12 Months Ended |
Dec. 31, 2021 | |
Share Capital , Reserves, Other Equity Interest, Share-Based Payment Arrangements And Earnings Per Share [Abstract] | |
Share Capital | Share CapitalAs at December 31, 2021, the Company’s authorized share capital consists of an unlimited number of common shares without par value. As at December 31, 2021, 90,204,378 common shares were outstanding. (a) Options During the year ended December 31, 2021, the Company granted 316,910 (2020 - 489,295) options to employees of the Company at weighted average exercise price of $15.66 per share (2020 - $15.38) with a term to expiry of five years. These stock options vest in three Number of Weighted Average Exercise Price Outstanding stock options, December 31, 2019 5,061,417 6.23 Issued 489,295 15.38 Exercised (908,949) 3.13 Outstanding stock options, December 31, 2020 4,641,763 $ 7.91 Issued 316,910 15.66 Exercised (725,121) 4.64 Cancelled (31,163) 15.78 Outstanding stock options, December 31, 2021 4,202,389 $ 8.98 As at December 31, 2021, the following stock options were outstanding: Expiry Date Number of Weighted Average Vested and Exercisable Number of Stock Options Weighted Average Remaining Life in Years May 15, 2022 190,334 $ 1.50 USD 190,334 0.37 July 10, 2022 60,000 1.50 USD 60,000 0.52 November 24, 2022 159,000 6.48 CAD 159,000 0.90 December 7, 2022 1,142,501 6.74 CAD 1,142,501 0.93 January 18, 2023 60,000 7.95 CAD 60,000 1.05 June 19, 2023 104,000 10.25 CAD 104,000 1.47 July 16, 2023 100,000 9.01 CAD 100,000 1.54 December 31, 2023 1,004,828 9.76 CAD 1,004,828 2.00 January 2, 2024 125,000 9.80 CAD 125,000 2.01 August 15, 2024 20,000 21.09 CAD 20,000 2.62 December 12, 2024 448,951 20.52 CAD 292,203 2.95 January 2, 2025 73,456 23.42 CAD 53,456 3.01 December 17, 2025 397,409 18.90 CAD 136,980 3.96 March 18, 2026 50,000 24.45 CAD — 4.21 August 19, 2026 17,514 23.37 CAD — 4.64 December 15, 2026 249,396 18.69 CAD 28,959 4.96 4,202,389 $ 8.98 USD 3,477,261 2.06 In determining the weighted average exercise price of all outstanding options in the tables above and below, the CAD prices were converted to USD at the December 31, 2021 exchange rate of 1.2677. The fair value of options granted in the years ended December 31, 2021 and 2020 was determined using the Black-Scholes option pricing model. The weighted average inputs used in the measurement of fair values at grant date of the options are the following: 2021 2020 Expected term (years) 3.0 3.0 Forfeiture rate — % — % Volatility 56 % 53 % Dividend yield — % — % Risk-free interest rate 1.10 % 0.58 % Weighted-average fair value per option $ 5.57 $ 6.00 The continuity of PSUs issued and outstanding is as follows: Year ended December 31, 2021 2020 Outstanding balance, beginning of year 727,761 437,463 Issued 310,287 290,298 Settled (223,231) — Cancelled (21,774) — Outstanding balance, end of year 793,043 727,761 These PSUs will vest three years from the date of grant by the Compensation Committee and the number of PSUs that will vest may range from 0% to 200% of the number granted, subject to the satisfaction of certain market and non-market performance conditions. Each vested PSU entitles the holder thereof to receive on or about the applicable date of vesting of such share unit (i) one common share; (ii) a cash amount equal to the fair market value of one common share as at the applicable date of vesting; or (iii) a combination of (i) and (ii), as determined by the Compensation Committee in its sole discretion. Prior to December 2021, the Company had intended to settle its PSUs using common shares and, accordingly, the PSUs were classified as equity settled instruments. In December 2021, the Company elected to settle its PSUs in cash and, therefore, $9.4 million of PSUs were reclassified from contributed surplus to liabilities. On reclassification, the Company recognized the liability at its fair value and recognized a reduction in shared-based compensation of $1.2 million. During the year ended December 31, 2021, 51,855 DSUs (year ended December 31, 2020 - 79,230) were issued to independent directors. As at December 31, 2021, the fair value of the DSU liability was $2.0 million (December 31, 2020 - $1.3 million) which has been recognized in accounts payable and accrued liabilities, with $0.7 million recognized in share-based compensation expense for the year ended December 31, 2021 (year ended December 31, 2020 - $1.3 million). (d) Restricted Share Unit Plan The Company has a restricted share unit ("RSU") plan pursuant to which the Compensation Committee may grant share units to any officer, employee, or consultant of the Company or its subsidiaries. RSUs issued under the plan entitles the holder thereof to receive one common share, without payment of additional consideration, on the redemption date selected by the Compensation Committee following the date of vesting of such share unit, which will be within 30 days of the date of vesting, or at a later deferred date, subject to certain exception and restrictions. RSUs granted will vest in three During the year ended December 31, 2021, 171,106 share units (year ended December 31, 2020 - nil) were issued and outstanding. (e) Warrants During the year ended December 31, 2021, all of the remaining 1,599,996 warrants were exercised for gross proceeds of $1.9 million (year ended December 31, 2020 - 1,266,666 warrants for gross proceeds of $1.5 million). (f) Share-based compensation Year ended December 31, 2021 2020 Stock options $ 2,925 $ 3,864 Performance share unit plan 4,124 3,900 Deferred share unit plan 734 1,300 Restricted share unit plan 65 — Share-based compensation (1) $ 7,848 $ 9,064 (1) For the year ended December 31, 2021, the Company recorded $7.3 million (year ended December 31, 2020 - $7.8 million) of share-based compensation in contributed surplus, and the remaining share-based compensation was recorded in liabilities. In addition, the Company reclassified $9.4 million (year ended December 31, 2020 - nil) in share-based compensation from contributed surplus to liabilities. (g) Net Income per Share Year ended December 31, 2021 2020 Weighted average number of common shares outstanding 88,602,367 86,368,535 Dilutive effects of: Warrants — 2,397,518 Stock options 2,353,584 2,355,933 Share units 7,501 1,091,642 Weighted average number of diluted common shares outstanding (1) 90,963,452 92,213,628 Net income attributable to owners of the Company $ 201,053 $ 51,622 Basic net income per share 2.27 0.60 Diluted net income per share 2.21 0.56 |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2021 | |
Revenue From Contracts With Customers [Abstract] | |
Revenue | Revenue Year ended December 31, 2021 2020 Copper Sales within Brazil $ 131,595 $ 161,803 Export sales 295,682 96,852 Adjustments on provisionally priced sales (1) (3,323) 2,233 423,954 260,888 Gold Export sales 58,682 63,188 Amortization of deferred revenue (2) 7,279 — $ 65,961 $ 63,188 $ 489,915 $ 324,076 (1) Under the terms of the Company’s contract with its domestic customer, sales are provisionally priced on the date of sale based on the previous month’s average copper price and subsequently settled based on the average copper price in the month of shipment. Provisionally priced sales to the Company's international customer are settled with a final sales price between one |
Cost of Sales
Cost of Sales | 12 Months Ended |
Dec. 31, 2021 | |
Analysis of income and expense [abstract] | |
Cost of Sales | Cost of Sales Year ended December 31, 2021 2020 Materials $ 26,343 $ 18,912 Salaries and benefits 39,497 30,044 Depreciation and depletion 47,002 39,212 Contracted services 21,373 18,463 Maintenance costs 18,162 14,672 Utilities 10,721 8,728 Sales expense 7,243 5,354 Other costs 716 554 $ 171,057 $ 135,939 |
General and Administrative Expe
General and Administrative Expenses | 12 Months Ended |
Dec. 31, 2021 | |
Analysis of income and expense [abstract] | |
General and Administrative Expenses | General and Administrative Expenses Year ended December 31, 2021 2020 Accounting and legal $ 1,625 $ 1,079 Amortization and depreciation 288 136 Office and administration 9,143 7,066 Salaries and consulting fees 16,962 12,206 Incentive payments 7,126 6,116 Other 3,702 1,324 $ 38,846 $ 27,927 |
Finance Expense
Finance Expense | 12 Months Ended |
Dec. 31, 2021 | |
Analysis of income and expense [abstract] | |
Finance Expense | Finance Expense Year ended December 31, 2021 2020 Interest on loans and borrowings $ 5,177 $ 9,921 (Gain) loss on interest rate swap derivatives (469) 2,720 Accretion of deferred revenue 1,501 — Accretion of mine closures and rehabilitation provisions 1,077 902 Commitment fees 1,027 484 Interest on lease liabilities 413 229 Other finance expenses 3,433 1,193 $ 12,159 $ 15,449 |
Foreign Exchange Loss
Foreign Exchange Loss | 12 Months Ended |
Dec. 31, 2021 | |
Changes In Foreign Exchange Rates [Abstract] | |
Foreign Exchange Loss | Foreign Exchange Loss The following foreign exchange gains (losses) arise as a result of balances and transactions in the Company’s Brazilian subsidiaries that are denominated in currencies other than the Brazilian Reals (BRL$), which is their functional currency. Year ended December 31, 2021 2020 Foreign exchange loss on USD denominated debt in Brazil $ (5,370) $ (24,190) Realized foreign exchange loss on derivative contracts (note 22) (22,240) (20,804) Unrealized foreign exchange gain (loss) on derivative contracts (note 22) 3,911 (34,548) Other 1,731 (263) $ (21,968) $ (79,805) |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Taxes [Abstract] | |
Income Taxes | Income Taxes (a) Reconciliation of income taxes A reconciliation of the income tax expense to the amount calculated using the Company’s combined Canadian federal and provincial statutory income tax rate of 27% (2020 – 27%) is as follows: Year ended December 31, 2021 2020 Net income in the year before tax $ 236,920 $ 61,423 Tax rate 27 % 27 % Income tax expense at statutory rate $ 63,968 $ 16,584 Tax effect of: Difference in tax rate of foreign jurisdictions (29,888) (6,227) Non-taxable items (7,465) (1,792) Change in temporary differences not previously recognized 6,618 (113) Other 1,055 473 Income tax expense $ 34,288 $ 8,925 Year ended December 31, 2021 2020 Current income tax: Relating to current income tax charge $ 22,428 $ 9,675 Deferred income tax: Relating to origination and reversal of temporary differences 11,860 (750) Income tax expense recognized in net income $ 34,288 $ 8,925 Income tax expense (recovery) recognized in other comprehensive income 576 (3,073) Total income tax expense $ 34,864 $ 5,852 (b) Deferred income tax assets The general movement in the deferred income tax assets is as follows: Year ended December 31, 2021 2020 At the beginning of the year $ 14,223 $ 13,099 Deferred income tax (expense) recovery (11,860) 750 Income tax expense (recovery) recognized in OCI (576) 3,073 Foreign exchange 528 (2,699) At the end of the year $ 2,315 $ 14,223 Recognized deferred tax and assets and liabilities consist of the following: December 31, 2021 December 31, 2020 Deferred tax assets: Non-capital losses - Brazil $ 1,924 $ 15,688 Foreign exchange - Brazil 8,458 9,412 Other - Brazil 3,409 2,167 Mine closure and rehabilitation provision - Brazil 2,903 3,110 Non-capital losses - Canada 981 737 Financing fees and other - Canada 289 823 17,964 31,937 Deferred tax liabilities: Mineral property, plant and equipment - Brazil (4,986) (6,179) Loans and borrowings - Brazil (8,775) (9,431) Other - Brazil (618) (544) Loans and borrowings - Canada (1,270) (1,560) (15,649) (17,714) Net deferred income tax assets $ 2,315 $ 14,223 Deferred tax assets of $21.4 million (December 31, 2020 - $13.5 million) have not been recognized for the following deductible temporary differences as it is not probable that the benefits of these temporary differences will be realized : Year ended December 31, 2021 Year ended December 31, 2020 Brazil Canada Brazil Canada Exploration and evaluation assets $ 34,660 $ — $ 37,213 $ — Mineral property, plant and equipment — 922 — 90 Non-capital losses — 44,521 — 22,194 Other — 16,213 — 7,238 $ 34,660 $ 61,656 $ 37,213 $ 29,522 The Company has loss carry forwards in Brazil totalling $7.7 million (December 31, 2020 - $46.7 million) which may be carried forward indefinitely to offset future taxable income in Brazil. Use of these losses is limited to 30% of taxable income annually. The Company also has loss carry forwards in Canada totalling $48.0 million (December 31, 2020 - $24.9 million) which may be carried forward for 20 years to offset future taxable income, which expire between 2036 and 2041. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party [Abstract] | |
Related Party Transactions | Related Party Transactions Key management personnel consist of the Company’s directors and officers. The remuneration of key management personnel during the year was as follows: Year ended December 31, 2021 2020 Salaries and short-term benefits (1) $ 10,282 $ 7,400 Share-based payments (2) 5,702 5,100 $ 15,984 $ 12,500 (1) Includes annual salary and short-term incentives or bonuses earned in the year. (2) Includes PSUs, RSUs, DSUs and stock option grants. |
Financial instruments
Financial instruments | 12 Months Ended |
Dec. 31, 2021 | |
Financial Instruments [Abstract] | |
Financial Instruments | Financial Instruments Fair value Fair values of financial assets and liabilities are determined based on available market information and valuation methodologies appropriate to each situation. Judgments are required in the interpretation of the market data to produce the most appropriate fair value estimates. The use of different market information and/or evaluation methodologies may have a material effect on the fair value amounts. As at December 31, 2021, derivatives were measured at fair value based on Level 2 inputs. The carrying values of cash and cash equivalents, short-term investments, accounts receivable, deposits, and accounts payable and accrued liabilities approximate their fair values due to their short terms to maturity or market rates of interest used to discount amounts. At December 31, 2021, the carrying value of loans and borrowings is $59.3 million while the face value is approximately $61.2 million. The contractual interest rates on these loans and borrowings are a close approximation of market rates of interest at December 31, 2021 (Level 2 of the fair value hierarchy). Credit risk Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises principally from the Company’s receivables from customers. The carrying amount of the financial assets below represents the maximum credit risk exposure as at December 31, 2021 and December 31, 2020: December 31, 2021 December 31, 2020 Cash and cash equivalents $ 130,129 $ 62,508 Accounts receivable 30,704 20,353 Deposits and other non-current assets 1,295 595 $ 162,128 $ 83,456 The Company invests cash and cash equivalents and short-term investments with financial institutions that are financially sound based on their credit rating. The Company’s exposure to credit risk associated with accounts receivable is influenced mainly by the individual characteristics of each customer. The Company currently has five significant customers, all of which have no history of credit default with the Company. The Company has not incurred credit losses during the years ended December 31, 2021 and 2020 nor recognized a provision for credit losses. Liquidity risk Liquidity risk is the risk associated with the difficulties that the Company may have meeting the obligations associated with financial liabilities that are settled with cash payments or with another financial asset. The Company's approach to liquidity management is to ensure as much as possible that sufficient liquidity exists to meet their maturity obligations on the expiration dates, under normal and stressful conditions, without causing unacceptable losses or with risk of undermining the normal operation of the Company. The table below shows the Company's maturity of non-derivative financial liabilities on December 31, 2021: Non-derivative financial liabilities Carrying Contractual cash flows Up to 1 - 2 3 - 5 More than Loans and borrowings (including interest) $ 59,250 $ 62,041 $ 54,789 $ 3,066 $ 4,186 $ — Accounts payable and accrued liabilities 66,546 66,546 66,546 — — — Other non-current liabilities 5,067 16,246 308 7,302 7,984 652 Leases 7,110 7,265 4,867 1,770 628 — Total $ 137,973 $ 152,098 $ 126,510 $ 12,138 $ 12,798 $ 652 The Company also has derivative financial liabilities for foreign exchange and interest rate derivatives whose notional amounts and maturity information is disclosed below under foreign exchange currency risk and interest rate risk. Market risk Market risk is the risk of loss that may arise from changes in market factors such as interest rates, foreign exchange rates, and commodity prices. The purpose of market risk management is to manage and control exposures to market risks, within acceptable parameters, while optimizing return. The Company may use derivatives, including forward contracts and swap contracts, to manage market risks. The Company’s subsidiaries in Brazil are exposed to exchange risks related to the US dollars and Euros. In order to minimize currency mismatches, the Company monitors its cash flow projections considering future sales expectations indexed to US dollar variation in relation to the cash requirement to settle the existing financings. The Company's exposure to foreign exchange currency risk at December 31, 2021 relates to $7.8 million (December 31, 2020 – $7.4 million) in loans and borrowings of MCSA denominated in US dollars and Euros. In addition, the Company is also exposed to foreign exchange currency risk at December 31, 2021 on $63.8 million due to an intercompany loan balance (December 31, 2020 - $83.1 million) which has contractual repayment terms. Strengthening (weakening) in the Brazilian Real against the US dollar at December 31, 2021 by 10% and 20%, would have increased (decreased) pre-tax net income by $7.0 million and $13.9 million, respectively (2020 – $8.9 million and $17.7 million). Strengthening (weakening) in the Brazilian Real against the Euro at December 31, 2021 by 10% and 20%, would have increased (decreased) pre-tax net income by $0.2 million and $0.4 million, respectively (2020 – $0.2 million and $0.4 million). This analysis is based on the foreign currency exchange variation rate that the Company considered to be reasonably possible at the end of the year. The analysis assumes that all other variables, especially interest rates, are held constant. (ii) Interest rate risk The Company is principally exposed to the variation in interest rates on loans and borrowings with variable rates of interest. Management reduces interest rate risk exposure by entering into loans and borrowings with fixed rates of interest or by entering into derivative instruments that fix the ultimate interest rate paid. The Company is principally exposed to interest rate risk through its New Revolving Credit Facility of $50.0 million and Brazilian Real denominated bank loans of $3.5 million. Based on the Company’s net exposure at December 31, 2021, a 1% change in the variable rates would have an impact of $0.5 million on pre-tax annual net income, without consideration of the effects of the interest rate swap contract below. In order to mitigate the above volatility due to variable rates on loans, the Company entered into an interest rate swap contract to manage interest rate risk (see note 10(a)). At December 31, 2021, the floating interest on a notional amount of $50.0 million was swapped for a fixed interest rate of 1.68%. This interest rate swap transaction is in effect until March 31, 2025, with settlements made on a monthly basis. The fair value of this contract at December 31, 2021 was a liability of $1.0 million (December 31, 2020 - $2.5 million) and was included in Derivatives in the statement of financial position. For the year ended December 31, 2021, the Company recognized a realized loss of $0.8 million (a realized loss of $1.6 million for the year ended December 31, 2020) and an unrealized gain of $1.3 million (an unrealized loss of $1.1 million for the year ended December 31, 2020), respectively, in relation to its interest rate swap derivatives. (iii) Price risk The Company may use derivatives, including forward contracts, collars and swap contracts, to manage commodity price risks. At December 31, 2021, the Company has provisionally priced sales that are exposed to commodity price changes (note 15). Based on the Company’s net exposure at December 31, 2021, a 10% change in the price of copper would have an impact of $0.2 million on pre-tax net income. |
Capital Management
Capital Management | 12 Months Ended |
Dec. 31, 2021 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Capital Management | Capital Management The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going concern in order to pursue the development and production of its mine properties and to maintain a flexible capital structure for its projects for the benefit of its stakeholders. The Company's capital consists of items included in shareholders’ equity, debt facilities net of cash and cash equivalents. Management reviews the capital structure on a regular basis to ensure that the above-noted objectives are met. The Company manages the capital structure and makes adjustments to it considering changes in the economic conditions and the risk characteristics of the underlying assets. To maintain or adjust the capital structure, the Company may attempt to issue new loans and borrowings, common shares, or acquire or dispose of assets. Certain loan agreements contain operating and financial covenants that could restrict the ability of the Company and its subsidiary, MCSA, to, among other things, incur additional indebtedness needed to fund its respective operations, pay dividends or make other distributions, make investments, create liens, sell or transfer assets or enter into transactions with affiliates. There are no other restrictions or externally imposed capital requirements of the Company. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Year ended December 31, 2021 2020 Net change in non-cash working capital items: Accounts receivable $ (12,180) $ (13,266) Inventories (2,325) (6,360) Other assets (8,297) 6,858 Accounts payable and accrued liabilities 10,366 (3,885) Value added, payroll and other taxes (2,662) 7,121 $ (15,098) $ (9,532) Non-cash investing and financing activities: Change in mineral, property, plant and equipment from change in estimates for provision for rehabilitation and closure costs 2,225 (3,803) Additions to property, plant and equipment by leases 10,205 2,439 Non-cash changes in accounts payable in relation to capital expenditures 3,551 (581) Transfer of PSU from equity reserves to liabilities 9,389 — |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
Contingencies | ContingenciesDue to the nature of the Company’s operations, various legal, tax, environmental and regulatory matters are outstanding from time to time. By their nature, contingencies will only be resolved when one or more future events occur or fail to occur. The assessment of contingencies inherently involves the exercise of significant judgement and estimates of the outcome of future events. While the outcomes of these matters are uncertain, based upon the information currently available, the Company does not believe that these matters in aggregate will have a material adverse effect on its consolidated financial statements. In the event that management’s estimate of the future resolution of these matters changes, the Company will recognize the effect of these changes in its consolidated financial statements in the period in which such changes occur. As of December 31, 2021, based on the opinion of its legal advisers, the Company has not recognized a provision for the following claims of MCSA and NX Gold as it is not probable that a cash outflow will occur. December 31, 2021 December 31, 2020 Social security tax (a) $ 3,415 $ 2,879 Taxes (b) 9,531 11,633 Labour 1,219 968 Mining and other (c) 6,791 6,346 $ 20,956 $ 21,826 (a) Social security tax Social security claims relate to potential social security tax payments related to past payments to employees, including profit sharing, and payments made to external contractors. The Company strongly believes, based on precedent court case rulings, that part of the claim will be cancelled after administrative and judicial discussions. The estimated portion of the claim expected to be cancelled of $9.5 million is included in the table above. (b) Tax There are 122 tax claims (2020 – 121 tax claims) against MCSA which were evaluated as possible, but not probable, losses by external legal counsel. The main subjects under discussion for the tax claims involve the validity of tax credits used to offset federal taxes. (c) Mining In June 2019, MCSA was notified of five administrative claims filed by the Nacional Mining Agency regarding alleged differences in the calculation of certain sales taxes on mining revenue by MCSA. The Company, based on the opinion of its legal advisors, does not believe such claims will result in a probable cash outflow. |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent events | Subsequent events In February 2022, the Company closed an offering of $400 million aggregate principal amount of Senior Notes due 2030 (the “Notes”). Interest on the Notes accrues at an annual rate of 6.50%, payable semi-annually in arrears. The Notes mature on February 15, 2030. MCSA is currently the only guarantor of the Notes on a senior unsecured basis. The Notes are direct, senior obligations of the Company and MCSA, and are not secured by any mortgage, pledge or charge. Estimated transaction costs related to the offering of the Notes was $8.5 million. Pursuant to closing of the Notes offering, the Company repaid the outstanding balance under its New Revolving Credit Facility of approximately $50 million and reduced the size of its New Revolving Senior Credit Facility from $150 million to $75 million, with an accordion option to increase to $100.0 million at the election of the Company. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation These consolidated financial statements have been prepared on a historical cost basis except for fair-value through-profit-or-loss and derivative financial instruments, which are measured at fair value. These consolidated financial statements include the accounts of the Company and its subsidiaries. Subsidiaries are entities controlled by the Company. Control over a subsidiary is defined to exist when the Company is exposed to variable returns from involvement with an investee and has the ability to affect the returns through power over the investee. All intercompany balances and transactions are eliminated upon consolidation. Since the Company does not own 100% of its interests in MCSA and NX Gold, the interest attributable to non-controlling shareholders is reflected in non-controlling interests. Adjustments to non-controlling interests that do not |
Foreign Currency Translation | Foreign Currency Translation The functional currency and presentation currency of the Company is the US dollar. The monetary assets and liabilities of the Company that are denominated in foreign currencies are translated at the rate of exchange at the statement of financial position date while non-monetary assets and liabilities are translated at historical rates. Revenues and expenses are translated at the exchange rates approximating those in effect on the date of the transactions. Exchange gains and losses arising on translation are included in profit or loss. The functional currency of MCSA and NX Gold is the Brazilian Real (“BRL”). The assets and liabilities of MCSA and NX Gold are translated into the US dollar presentation currency using the rate of exchange at the statement of financial position date while revenues and expenses are translated at the exchange rates approximating those in effect on the date of the transactions. Exchange gains and losses arising on translation are included in a separate component of shareholders’ equity. |
Use of Estimates and Judgments | Use of Estimates and Judgments In preparing these financial statements, management has made judgments, estimates and assumptions that affect the application of the Company’s accounting policies and the reported amounts of the assets, liabilities, revenues and expenses. Actual results may differ from these estimates. The estimates and assumptions are reviewed on an ongoing basis. Revisions to estimates are recognized prospectively. Critical Judgments Functional currency The functional currency of the Company and each of its subsidiaries is the currency of the primary economic environment in which the entities operate. The Company has determined that the functional currency for the Company is the US dollar while the functional currency for MCSA and NX Gold is the Brazilian Real. Assessment of functional currency involves certain judgments 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. Legal claims and contingent liabilities The recognition of legal provisions and contingent liabilities involves the assessment of claims made against the Company and each of its subsidiaries. The recognition of a legal provision, or disclosure of a contingent liability, involves certain judgments to determine the probability of whether a cash outflow will occur. In making this judgment, management has assessed various criteria and also relies on the opinions of its legal advisers to assist in making this assessment. Key Sources of Estimation Uncertainty The preparation of financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of assets and liabilities at the date of the consolidated financial statements and the reported amounts of expenses during the reporting periods. Actual results could differ from those estimates and such differences could be significant. Significant estimates made by management affecting the consolidated financial statements include: Derivative instruments The fair value of derivative instruments is determined using either present value techniques or option pricing models that utilize a variety of inputs that are a combination of quoted prices and market-corroborated inputs, including assumptions for forward interest and foreign exchange rates, volatilities and discount rates. The fair value of the Company’s derivative contracts includes an adjustment for credit risk for either the Company or the counter party as applicable. Changes in the assumptions for inputs into the models affect the fair value of the derivatives recognized in the statement of financial position as well as the unrealized gains or losses recognized in net income. Mineral reserve and resource estimates including life of mine plan The Company estimates its mineral reserves and resources based on information compiled by competent individuals. Mineral reserves are used in the calculation of depreciation, impairment assessments, for forecasting the timing of payment of mine closure and rehabilitation costs, as well as amortization of deferred revenues. There are numerous uncertainties inherent in estimating mineral reserves, and assumptions that are valid at the time of estimation may change significantly when new information becomes available. Changes in the estimation methodology, forecasted prices of commodities, exchange rates, production costs or recovery rates may change the economic status of mineral reserves and may, ultimately, result in changes in the mineral reserves. The carrying amounts of the Company’s mineral, property, plant and equipment are depleted in part based on recoverable mineral reserve tonnes processed, depending on the use of the asset. Changes to estimates of recoverable quantities of metals, mineral reserve tonnes and depletable costs, including changes resulting from revisions to the Company’s mine plans and changes in metals prices forecasts, can result in a change to future depreciation and depletion rates, amortization of deferred revenue, and may also result in impairment charges on non-current assets. Mine closure and reclamation costs Significant estimates and assumptions are made in determining the provision for mine closure and reclamation costs as there are numerous factors that will affect the ultimate liability payable. These factors include estimation of the extent and cost of rehabilitation activities, timing of future cash flows, discount rates, inflation rate, and regulatory requirements. Changes in the above factors can result in a change to the provision recognized by the Company. Changes to mine closure and rehabilitation costs are recorded with a corresponding change to the carrying amounts of related mineral, property, plant and equipment. Adjustments to the carrying amounts of related mineral, property, plant and equipment can result in a change to future depreciation and depletion expense. Income taxes The determination of the Company’s tax expense for the period and deferred tax assets and liabilities involves significant estimation and judgment by management. In determining these amounts, 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. Management also makes estimates of future earnings, which affect the extent to which potential future tax benefits may be used. The Company is subject to assessments by various taxation authorities, which may interpret legislation differently. These differences may affect the final amount or the timing of the payment of taxes. The Company provides for such differences where known based on management’s best estimate of the probable outcome of these matters. The Company operates in Brazil where tax authorities may audit income tax treatments and the resolution of such audits may span multiple years. Tax law in Brazil is complex and often subject to changes and to varied interpretations; accordingly, the ultimate outcome with respect to income tax treatments may differ from the amounts recognized. The Company’s assessment of whether it is probable that uncertain income tax treatments will be accepted by tax authorities in Brazil is a significant management judgment. Deferred Revenue Judgment and estimates were required in determining the accounting for the precious metal purchase agreement with RGLD Gold AG, a subsidiary of Royal Gold Inc. (collectively "Royal Gold"), which is accounted for as deferred revenue in accordance with IFRS 15 Revenue from Contracts with Customers (“IFRS 15”). As the Company’s obligation under the precious metal purchase agreement will be satisfied through deliveries of a non-financial item (i.e. deliveries of gold ounces), rather than cash or other financial assets, it was determined to be entered into and continued to be held for the purpose of the delivery of a non-financial item in accordance with the Company’s expected sale or usage requirements and thus not within the scope of IFRS 9 Financial Instruments (“own use exemption”). The determination of whether the own use exemption applies requires management’s judgements. Each period management estimates the cumulative amount of the deferred revenue obligation that has been satisfied and, therefore, recognized as revenue. Key inputs into the estimate of the amount of deferred revenue that should be recognized include the following: a. Future gold prices are used to estimate the expected total consideration to be received under the contract including variable consideration and is used as the stand alone selling price to allocate the consideration to each ounce of gold to be delivered to Royal Gold, and b. Expected life of mine gold production and the timing thereof, which is estimated based on the approved life of mine for the NX Gold mine and the portion of mineral resources anticipated to be converted to mineral reserves. |
New Accounting Policies, Standards and Interpretations | New Accounting Policies, Standards and Interpretations Property, Plant and Equipment - Proceeds before Intended Use On May 14, 2020, the IASB published a narrow scope amendment to IAS 16 Property, Plant and Equipment - Proceeds before Intended Use . The amendment prohibits deducting from the cost of property, plant and equipment amounts received from selling items produced while preparing the asset for its intended use. Instead, amounts received will be recognized as sales proceeds and related cost in profit or loss. The effective date is for annual periods beginning on or after January 1, 2022, with early adoption permitted. The Company has elected to early adopt this standard in 2021, which did not have a material impact on its consolidated financial statements. (f) Future Changes in Accounting Policies Not Yet Effective as of December 31, 2021 The following amendment to accounting standards has been issued but not yet adopted in the financial statements: • In September 2019, the IASB issued first phase amendments IFRS 9 Financial Instruments , IAS 39 Financial Instruments: Recognition and Hedging , and IFRS 7 Financial Instrument Disclosures to address the financial reporting impact of the reform on interest rate benchmarks, such as the discontinuance of the interbank offered rates. Phase 2 of the Interest Rate Benchmark Reform refers to a global reform of interest rate benchmarks, which includes the replacement of some interbank offered rates (“LIBOR”) with alternative benchmark rates. Phase 2 amendments require the effective interest rate to be adjusted when accounting for changes in the basis for determining the contractual cash flows of financial assets and liabilities that relate directly to this reform rather than applying modification accounting. In addition, the Phase 2 amendments require disclosures to assist users in understanding the effect of the reform on the Company’s financial instruments and risk management strategy. At December 31, 2021, Company had a $150.0 million senior secured revolving credit facility, of which $50.0 million was drawn, which bears interest on a sliding scale at a rate of LIBOR plus 2.25% to 4.25% depending on the Company’s consolidated leverage ratio. The Company also maintained an interest rate swap • In May 2021, the IASB issued Deferred Tax related to Assets and Liabilities Arising from a Single Transaction which amended IAS 12, Income Taxes ("IAS 12") . |
Revenue | Revenue Revenue relating to the sale of metals is recognized at the point the customer obtains control of the product and when the Company has satisfied its performance obligations. Control is transferred when title has passed to the purchaser, the product is physically delivered to the customer, the customer controls the risks and rewards of ownership and the Company has a present right to payment for the product, which is generally when the concentrate or doré is delivered to a location designated by the customer, or when gold credits are transferred to the customer. The sales amount is typically based on quoted market and contractual prices which are fixed at the time the shipment is received at the customers’ premises. In certain circumstances the sales price of metals in concentrate may be determined in a period subsequent to the date of sale (provisionally priced sales) based on the terms of specific copper concentrate contracts. Provisionally priced sales are recognized based on an estimate of metal contained using forward market prices corresponding with the expected date that final sales prices will be fixed. The period between provisional pricing and final settlement can be up to one month. The settlement receivable is recorded at fair value each reporting period by reference to forward market prices until the date of final pricing, with the changes in fair value recorded as an adjustment to revenue. Deferred Revenue (note 11) In August 2021, the Company received an upfront cash deposit in connection with a precious metal purchase agreement with Royal Gold, which is accounted for as deferred revenue in accordance with IFRS 15. Deferred revenue consists of payments received by the Company in consideration for future commitments to deliver an amount of gold equivalent to a percentage of the gold produced from its NX Gold operations. As gold deliveries are made, the Company recognizes a portion of the deferred revenue as revenue, calculated on a per unit basis using the total number of gold ounces expected to be delivered over the life of the mine. The current portion of deferred revenue is based on deliveries anticipated over the next twelve months. Interest expense on deferred revenue is recognized in finance costs as there is a significant financing component related to the precious metal purchase agreement, resulting from a difference in the timing of the upfront consideration received and delivery of the gold. The interest rate is determined based on the rate implicit in the precious metal purchase agreement at the date of inception. Revenue to be recognized from the initial consideration received from the precious metal purchase agreement is considered variable, subject to changes in the total gold ounces to be delivered. Changes to variable consideration are reflected in revenue in profit or loss. The additional consideration to be received under the precious metal purchase agreement is considered variable, subject to changes in the total estimated gold ounces to be delivered and gold prices. |
Tax Incentives | Tax IncentivesThe Company receives certain tax incentives in Brazil. These tax incentives are recognized in profit or loss in the period the incentives are received or receivable and recorded against the expenditure that they are intended to compensate. |
Finance Income and Finance Expense | Finance Income and Finance ExpenseFinance income includes interest on cash and cash equivalents, restricted cash and financial investments, and gains related to changes in the fair value of financial assets measured at fair value through profit or loss. Interest income is recognized as it accrues in profit or loss, using the effective interest method.Finance expense comprises of interest expense on loans and borrowings, accretion expense on provisions, leases and deferred revenue, commitment fees and losses related to changes in the fair value of financial assets measured at fair value through profit or loss. Borrowing costs that are not directly attributable to the acquisition, construction or production of a qualifying asset are recognized in profit or loss using the effective interest method. |
Employee Benefits | Employee BenefitsShort-term employee benefit obligations are recognized as personnel expenses as the corresponding service is provided. Liabilities are recognized at the amount that is expected to be paid if the Company has a present legal or constructive obligation to pay that amount based on past services rendered by the employee, and the obligation can be estimated reliably. There are no long-term employee benefit plans. |
Taxation | Taxation Income tax expense comprises current and deferred tax. Current income 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. Deferred income 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 income tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on the tax laws that have been enacted or substantively enacted at the reporting date. Deferred income 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. Deferred income tax is not recognized for the initial recognition of assets or liabilities in a transaction that is not a business combination and that effects neither accounting nor taxable income or loss, differences related to investments in subsidiaries to the extent that it is probable that they will not reverse in the foreseeable future and taxable differences arising from the initial recognition of goodwill. A deferred income 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 income 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. Uncertainties over income tax treatments are evaluated on the basis of whether it is probable that they will be accepted upon examination by the relevant taxing authorities in Brazil. These uncertainties impact the amount of income taxes recognized. If it is determined that an uncertain income tax treatment is not probable of being accepted, the effect of the uncertain income tax treatment is reflected in the determination of income taxes based the most likely amount or, if there are a wide range of possible outcomes, the expected value. |
Inventories | Inventories Inventories are measured at the lower of cost and net realizable value. The cost of consumable inventory is determined on a weighted average acquisition cost basis. Cost of stockpile inventory, products in progress and finished goods is determined based on a weighted average production cost basis and includes the cost of mining and processing ore including direct labour and materials; depreciation and amortization; and an appropriate share of production overheads based on normal operating capacity. Net realizable value of stockpile inventory, products in progress and finished goods is the estimated selling price in the ordinary course of business, less estimated completion costs and selling expenses. Write-downs of inventories to net realizable value are included in the cost of sales in the period of the write-down. A write-down of inventories is reversed in a subsequent period if there is a subsequent increase in the net realizable value of the related inventories. Provisions for low turnover or obsolete supplies and consumables inventory are established by management as deemed necessary and is included in cost of sales. |
Mineral, Property, Plant and Equipment | Mineral, Property, Plant and Equipment Mineral, property, plant and equipment is measured at acquisition or construction cost, including capitalized borrowing costs, less accumulated depreciation and accumulated impairment losses. (i) Acquisition and disposal The cost of mineral, property, plant and equipment include expenditures directly attributable to an asset’s acquisition. The cost of assets constructed by Company includes the cost of materials and direct labor, any other costs to bring the asset in the place and conditions required to be operated in the manner intended by management, costs of disassembly and restoration of the site and borrowing costs on qualifying assets. When parts of mineral, property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of mineral, property, plant and equipment. Gains and losses on disposal of mineral, property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of equipment and are recognized net within other income. (ii) Subsequent costs The cost of replacing plant and equipment is recognized in the carrying amount of the item if it is probable that the future economic benefits embodied within the item will flow to the Company and its cost can be measured reliably. The carrying amount of the replaced item is derecognized. The maintenance service costs of equipment are included in profit or loss. (iii) Development and construction-in-progress When economically viable mineral reserves have been determined and the decision to proceed with development has been approved, exploration and evaluation assets are first assessed for impairment, then reclassified to construction-in-progress or mineral properties. The expenditures related to development and construction are capitalized as construction-in-progress and are included within mineral, property, plant and equipment. Construction-in-progress includes the purchase price and any costs directly attributable to bringing the asset to the location and condition necessary for its intended use including advances on long-lead items. Construction-in-progress is not depreciated. Once an asset is available for use, construction-in-progress costs are reclassified to mineral properties or plant and equipment. the underground mines are capitalized as pre-production stripping or development costs respectively and are included within mineral, property, plant and equipment. (iv) Mineral properties Mineral properties consist of the cost of acquiring and developing mineral properties. Once in production, mineral properties are amortized on a units-of-production basis over the component of the ore body to which they relate. (v) Stripping costs and development in the production phase Where open pit production stripping or underground development activities do not result in inventory produced, but does provide improved access to the ore body, the costs are classified as mineral properties when these activities meet all of the following criteria: (1) it is probable that the future economic benefit associated with the activity will flow to the Company; (2) the Company can estimate the mineral reserve of the ore body for which access has been improved; and (3) the costs relating to the activity associated with that mineral reserve can be measured reliably. For underground mines, costs incurred to access a mineral reserve of the ore body are capitalized to mineral properties or construction-in-progress and are depreciated on a units-of-production basis over the expected useful life of the identified mineral reserve of the ore body to which access has been improved as a result of the development activity. For open pit mines, stripping costs above average life of mine strip ratio (waste/ore) are capitalized to mineral properties or construction-in-progress and are depreciated over the related mineral reserves accessed by the stripping activity. (vi) Mine closure and rehabilitation costs The Company’s provision for mine closure and rehabilitation liabilities represents management’s best estimate of the present value of the future cash outflows required to settle estimated reclamation and closure costs at the end of a mine’s life. The provision reflects estimates of future costs, inflation, movements in foreign exchange rates and assumptions of risks associated with the future cash outflows, and the applicable risk-free interest rates for discounting the future cash outflows. Changes in the above factors can result in a change to the provision recognized by the Company. (vii) Depreciation Items of mineral, property, plant and equipment are depreciated on a straight-line method based on the estimated economic useful life of each component as follows: Buildings Lessor of life of mine or up to 25 years Mining equipment 4 years Mobile equipment & other assets 5 years Mineral properties Units of production Mine closure and rehabilitation costs Units of production or period until remediation Right of use assets Shorter of the term of lease and life of asset The depletion of mineral, properties and mine closure and rehabilitation costs is determined based on the ratio of tonnes of copper/kg of gold contained in the ore mined and total proven and probable mineral reserve tonnes of contained copper/kg of contained gold. |
Exploration and Evaluation Assets | Exploration and Evaluation Assets Exploration and evaluation costs relate to the initial search for a mineral deposit, the cost of acquisition of a mineral property interest or exploration rights and the subsequent evaluation to determine the economic potential of the mineral deposit. The exploration and evaluation stage commences when the Company obtains the legal right or license to begin exploration. Once the legal rights or license is obtained, exploration and evaluation expenses are capitalized as exploration and evaluation assets. Costs incurred prior to the Company obtaining the legal rights are expensed. When the exploration and evaluation of a mineral property indicates that development of the mineral property is technically and commercially feasible, the future economic benefits are probable, and the Company has the intention and sufficient resources to complete the development and use or sell the asset, the related costs are transferred from exploration and evaluation assets to mineral property, plant and equipment. Management reviews the carrying value of capitalized exploration costs for indicators that the carrying value is impaired at least annually and when facts and circumstances suggest that the carrying amount may exceed the recoverable amount. The review is based on the Company’s intentions for further exploration and development of the undeveloped property, results of drilling, commodity prices and other economic and geological factors. Subsequent recovery of the resulting carrying value depends on successful development or sale of the undeveloped project. If a property does not prove viable, all non-recoverable costs associated with the project, net of any previous impairment provisions, are written off. |
Financial Instruments | Financial Instruments Non-derivative financial assets The Company classifies its financial assets in the following categories: at fair value through profit or loss (“FVTPL”), at fair value through other comprehensive income (“FVTOCI”) or at amortized cost. The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of its financial assets at initial recognition. Measurement and classification of financial assets is dependent on the Company’s business model for managing the financial assets and the contractual cash flow characteristics of the financial asset. Financial assets are derecognized when they mature or are sold, and substantially all the risks and rewards of ownership have been transferred. Fair values A number of the Company’s accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities. When measuring the fair value of an asset or liability, the Company uses observable market data, as much as possible. Fair values are classified into different levels in a hierarchy based on the inputs used in the valuation techniques, as follows: • Level 1 : quoted prices (without adjustments) in active markets for identical assets or liabilities. • Level 2 : inputs other than Level 1 quoted prices, that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). • Level 3 : inputs, for assets or liabilities, that are not based on observable market information (non-observable inputs). The Company recognizes transfers between levels of the hierarchy of fair value at the end of the reporting period during which the change occurred. When applicable, additional information on the assumptions used in the fair value calculations are disclosed in the specific notes of the corresponding asset or liability. Financial assets at FVTPL Financial assets carried at FVTPL are initially recorded at fair value and transaction costs are expensed in the income statement. Realized and unrealized gains and losses arising from changes in the fair value of the financial asset held at FVTPL are included in profit or loss in the period in which they arise. Derivatives are also categorized as FVTPL unless they are designated as hedges. Financial assets at FVTOCI Investments in equity instruments at FVTOCI are initially recognized at fair value plus transaction costs. Subsequently they are measured at fair value, with gains and losses arising from changes in fair value recognized in other comprehensive income. Gains or losses on financial assets classified as FVTOCI remain within accumulated other comprehensive income following the derecognition of the investment. Financial assets at amortized cost Financial assets at amortized cost are initially recognized at fair value and subsequently carried at amortized cost less any impairment. They are classified as current assets or non-current assets based on their maturity date. Gains and losses on derecognition of financial assets classified amortized cost are recognized in profit or loss. Financial liabilities Financial liabilities are recognized initially at fair value, net of transaction costs incurred, and are subsequently measured at amortized cost. Any difference between the amounts originally received, net of transaction costs, and the redemption value is recognized in profit and loss over the period to maturity using the effective interest method. Derivative instruments Derivative instruments, including embedded derivatives in executory contracts or financial liability contracts, are classified as at FVTPL and, accordingly, are recorded in the statement of financial position at fair value. Unrealized gains and losses on derivatives not designated in a hedging relationship are recorded as part of the revenue or expense item to which the derivative relates, depending on the nature of the derivative. Fair values for derivative instruments are determined using inputs based on market conditions existing at the balance sheet date or settlement date of the derivative. Derivatives embedded in non-derivative contracts are recognized separately unless they are closely related to the host contract. Compound instruments Equity components of compound instruments, such as convertible debt, are separated from the debt host contract using the residual method. The Company determines the fair value of the debt component by discounting the expected principal and interest payments using an appropriate discount rate reflective of debt instruments with similar risks but without the equity component. The difference between the proceeds received and the amount assigned to the debt component is allocated to the equity component. Share capital Common shares are classified as equity. Incremental costs directly attributable to the issuance of common shares and share options are recognized as a deduction from equity, net of any tax effects. The Company includes the value of share purchase warrants included in the issuance of equity units, which consist of common shares and warrants, in share capital. Classification and measurement The Company has assessed the classification and measurement of its financial assets and financial liabilities under IFRS 9 in the following table: Measurement Category Financial Assets Cash and cash equivalents Amortized Cost Trade receivables related to provisional priced sales Fair value through profit or loss Other receivables Amortized Cost Deposits Amortized Cost Financial Liabilities Trade payables Amortized Cost Loans and borrowings Amortized Cost Derivatives Fair value through profit or loss Cash and cash equivalents and deposits Cash is comprised of cash on hand and demand deposits. Cash equivalents and deposits are short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of change in fair value. Trade receivables |
Impairment | Impairment i) Financial assets The Company recognizes a loss allowance for expected credit losses on financial assets that are measured at amortized cost. At each reporting date, the loss allowance for the financial asset is measured at an amount equal to the lifetime expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition. If at the reporting date, the financial asset has not increased significantly since initial recognition, the loss allowance is measured for the financial asset at an amount equal to twelve months’ expected credit losses. For trade receivables the Company applies the simplified approach to providing for expected credit losses, which allows the use of a lifetime expected loss provision. Impairment losses on financial assets carried at amortized cost are reversed in subsequent periods if the amount of the loss decreases and the decrease can be objectively related to an event occurring after the impairment was recognized. The expected lifetime credit loss provision for trade receivables is based on historical counterparty default rates and adjusted for relevant forward-looking information, when required. As the Company’s five primary significant customers are considered to have a low default rate and historical default rates are low, the lifetime expected credit loss allowance for trade receivables is nominal as at December 31, 2021. Accordingly, the Company did not record a provision for expected credit losses for trade receivables. ii) Non-Financial assets At each reporting date, the carrying amounts of the Company’s mineral, property, plant and equipment and exploration and evaluation assets are reviewed to determine whether there is any indication that those assets are impaired. If such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment, if any. The recoverable amount is the higher of fair value less costs to sell and value in use, which is the present value of future cash flows expected to be derived from the asset or its related cash generating unit. For purposes of impairment testing, assets are grouped at the lowest levels that generate cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the “cash-generating unit”). If the recoverable amount of an asset or cash-generating unit is estimated to be less than its carrying amount, the carrying amount of the associated assets are reduced to their recoverable amount and the impairment loss is recognized in the profit or loss for the period. |
Provisions | Provisions i) Mine closure and rehabilitation provision The Company records the present value of estimated costs of legal and constructive obligations related to mine closure and rehabilitation in the period in which the obligation occurs. Mine closure and rehabilitation activities include facility decommissioning and dismantling; removal and treatment of waste materials; site and land rehabilitation, including compliance with and monitoring of environmental regulations; and related costs required to perform this work and/or operate equipment designed to reduce or eliminate environmental effects. The provision is adjusted each period for new disturbances, and changes in regulatory requirements, the estimated amount of future cash flows required to discharge the obligation, the timing of such cash flows and the pre-tax discount rate specific to the liability. The unwinding of the discount is recognized in profit or loss as a finance expense. When the provision is initially recognized, the corresponding cost is included in the carrying amount of the related asset and is amortized to profit or loss on a unit-of-production basis. ii) Other provisions Other provisions are recognized, based on a past event, when the Company has a legal or constructive obligation that can be estimated reliably, and it is probable that an economic mineral resource will be required to settle the obligation. Provisions are measured by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and specific risks for the liability. The discount is unwound over the period over which the cash flows are expected to be incurred with the related expense included in finance expense. |
Share-Based Compensation | Share-Based CompensationThe grant date fair value of equity settled share-based payment awards granted to employees and consultants, including directors and officers, is recognized as share-based compensation, with a corresponding increase in equity, over the period that the optionee unconditionally become entitled to the awards. The amount recognized as an expense is adjusted to reflect the number of awards for which the related service and non-market vesting conditions are expected to be performed or satisfied such that the amount ultimately recognized as an expense is based on the number of awards that meet the related service and non-market performance conditions at the vesting date. Performance share units and deferred share units are liability awards settled in cash and measured at the quoted market price at the grant date with the corresponding expense recognized over the period that the employees unconditionally become entitled to the awards. The corresponding liability is adjusted for changes in fair value at each subsequent reporting date until the awards are settled. |
Leases | Leases A contract is or contains a lease when the contract conveys a right to control the use of an identified asset for a period of time in exchange for consideration. The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, and subsequently at cost less any accumulated depreciation and impairment losses, and adjusted for certain re-measurements of the lease liability. The cost of the right-of-use asset includes the amount of the initial measurement of the lease liability, any lease payments made at or before the commencement date, less any lease incentives received, any initial direct costs; and if applicable, an estimate of costs to be incurred by the Company in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate. The incremental borrowing rate reflects the rate of interest that the lessee would have to pay to borrow the funds necessary to obtain an asset of similar value in a similar economic environment with similar terms and conditions. Generally, the Company uses its incremental borrowing rate as the discount rate. The lease liability is subsequently increased by the interest cost on the lease liability and decreased by lease payments made. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, a change in the estimate of the amount expected to be payable under a residual value guarantee, or as appropriate, changes in the assessment of whether a purchase or extension option is reasonably certain to be exercised or a termination option is reasonably certain not to be exercised. The Company does not recognize right-of-use assets and lease liabilities for leases of low-value assets and leases with lease terms that are less than 12 months. Lease payments associated with these leases are instead recognized as an expense over the lease term on either a straight-line basis, or another systematic basis if more representative of the pattern of benefit. The Company has applied judgement to determine the lease term for some lease contracts in which it is a lessee that include renewal options. The assessment of whether the Company is reasonably certain to exercise such options impacts the lease term, which significantly affects the amount of lease liabilities and right-of-use assets recognized. |
Income per Share | Income per ShareBasic income per share is calculated by dividing the net income attributable to common shareholders of the Company by the weighted average number of common shares outstanding during the period. Diluted income per common share is calculated by adjusting the weighted average number of common shares outstanding for the effect of conversion of all potentially dilutive share equivalents, such as stock options, share units and warrants. The dilutive effect of share options and warrants assumes that the receipt of proceeds upon exercise of the options are used to repurchase common shares at the average market price during the period. The net effect of the shares issued less the shares assumed to be repurchased is added to the basic weighted average shares outstanding. For convertible instruments, the common shares to be included in the diluted per share calculation assumes that the instrument is converted at the beginning of the period (or the issue date if later). For equity-settled share units (as defined herein, see note 14(d)), the common shares to be included in the diluted per share calculation is based on the number of shares that would be issuable if the reporting date were the end of the vesting period. The net income attributable to common shareholders is adjusted to eliminate related interest costs of dilutive securities recognized in net income for the period. |
Business combinations | Business combinations The Company applies the acquisition method to account for business combinations. The consideration transferred by the Company to obtain control of a subsidiary is calculated as the sum of the acquisition-date fair values of assets transferred, liabilities assumed and the equity interests issued by the Company, which includes the fair value of any asset or liability arising from a contingent consideration arrangement. Acquisition costs are expensed as incurred. The Company recognizes identifiable assets acquired and liabilities assumed in a business combination regardless of whether they have been previously recognized in the acquiree’s financial statements prior to the acquisition. Assets acquired and liabilities assumed are generally measured at their acquisition-date fair values. Goodwill arising from acquisitions is the excess of the sum of a) fair value of consideration transferred, b) the recognized amount of any non-controlling interest in the acquiree and c) acquisition-date fair value of any existing equity interest in the acquiree, over the acquisition-date fair values of identifiable net assets. If the fair values of identifiable net assets exceed the sum calculated above, the excess amount would be recognized in profit or loss immediately. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Schedule of Estimated Useful Lives | Items of mineral, property, plant and equipment are depreciated on a straight-line method based on the estimated economic useful life of each component as follows: Buildings Lessor of life of mine or up to 25 years Mining equipment 4 years Mobile equipment & other assets 5 years Mineral properties Units of production Mine closure and rehabilitation costs Units of production or period until remediation Right of use assets Shorter of the term of lease and life of asset Buildings Mining Equipment Mineral Projects in Equipment & Other Assets Mine Closure Costs Right-of-Use Assets Total Cost: Balance, December 31, 2019 $ 17,609 $ 103,175 $ 261,392 $ 52,705 $ 9,481 $ 14,107 $ 7,231 $ 465,700 Additions 54 10,515 6,747 81,332 18,942 197 2,982 120,769 Disposals — (16,671) — (80) (522) (3,803) (291) (21,367) Transfers 1,546 19,940 56,346 (64,888) (12,958) — 14 — Foreign exchange (4,327) (24,257) (59,173) (12,297) (2,139) (2,965) (1,614) (106,772) Balance, December 31, 2020 14,882 92,702 265,312 56,772 12,804 7,536 8,322 458,330 Additions 19 7,538 7,580 130,821 26,826 5,162 10,425 188,371 Disposals — (1,004) — (1,821) (10) — (575) (3,410) Transfers 4,626 33,217 74,951 (94,599) (18,195) — — — Foreign exchange (1,175) (7,678) (20,942) (4,867) (1,118) (688) (874) (37,342) Balance, December 31, 2021 $ 18,352 $ 124,775 $ 326,901 $ 86,306 $ 20,307 $ 12,010 $ 17,298 $ 605,949 Accumulated depreciation: Balance, December 31, 2019 $ (4,047) $ (25,599) $ (85,293) $ — $ (4,572) $ (2,958) $ (3,715) $ (126,184) Depreciation expense (785) (10,882) (24,597) — (1,317) (1,029) (3,865) $ (42,475) Disposals — 14,999 — — 446 — 168 $ 15,613 Foreign exchange 916 5,827 19,351 — 860 672 792 $ 28,418 Balance, December 31, 2020 (3,916) (15,655) (90,539) — (4,583) (3,315) (6,620) (124,628) Depreciation expense (808) (12,664) (26,475) — (1,489) (985) (4,869) (47,290) Disposals — 913 — — 3 — 413 1,329 Foreign exchange 296 1,463 7,125 — 336 260 588 10,068 Balance, December 31, 2021 $ (4,428) $ (25,943) $ (109,889) $ — $ (5,733) $ (4,040) $ (10,488) $ (160,521) Net book value, December 31, 2020 $ 10,966 $ 77,047 $ 174,773 $ 56,772 $ 8,221 $ 4,221 $ 1,702 $ 333,702 Net book value, December 31, 2021 $ 13,924 $ 98,832 $ 217,012 $ 86,306 $ 14,574 $ 7,970 $ 6,810 $ 445,428 |
Classification and Measurement of Financial Assets and Liabilities Under IFRS 9 | The Company has assessed the classification and measurement of its financial assets and financial liabilities under IFRS 9 in the following table: Measurement Category Financial Assets Cash and cash equivalents Amortized Cost Trade receivables related to provisional priced sales Fair value through profit or loss Other receivables Amortized Cost Deposits Amortized Cost Financial Liabilities Trade payables Amortized Cost Loans and borrowings Amortized Cost Derivatives Fair value through profit or loss |
Segment Disclosure (Tables)
Segment Disclosure (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of operating segments [abstract] | |
Summary of Reportable Segments | Significant information relating to the Company's reportable segments is summarized in the tables below: Year ended December 31, 2021 MCSA NX Gold Corporate (Canada) Consolidated Revenue $ 423,954 $ 65,961 $ — $ 489,915 Cost of production (96,975) (19,837) — (116,812) Depreciation and depletion (39,202) (7,800) — (47,002) Sales expense (6,726) (517) (7,243) Cost of sales (142,903) (28,154) — (171,057) Gross profit 281,051 37,807 — 318,858 Expenses General and administrative (20,444) (2,560) (15,842) (38,846) Share-based compensation — — (7,848) (7,848) Finance income 1,031 1,092 868 2,991 Finance expenses (5,622) (889) (5,648) (12,159) Foreign exchange loss (21,225) (360) (383) (21,968) NX Gold PMPA transaction fees — (1,219) — (1,219) Other expenses (2,382) (507) — (2,889) Income (loss) before taxes 232,409 33,364 (28,853) 236,920 Current tax expense (15,087) (4,406) (2,935) (22,428) Deferred tax expense (11,482) (378) — (11,860) Net income (loss) $ 205,840 $ 28,580 $ (31,788) $ 202,632 Assets Current $ 152,703 $ 35,734 $ 20,249 208,686 Non-current 435,265 45,791 20 481,076 Total Assets $ 587,968 $ 81,525 $ 20,269 $ 689,762 Total Liabilities $ 116,905 $ 109,679 $ 67,688 294,272 Year ended December 31, 2020 MCSA NX Gold Corporate (Canada) Consolidated Revenue $ 260,888 $ 63,188 $ — $ 324,076 Cost of production (73,893) (17,480) — (91,373) Depreciation and depletion (35,674) (3,538) — (39,212) Sales expenses (4,937) (417) — (5,354) Cost of sales (114,504) (21,435) — (135,939) Gross profit 146,384 41,753 — 188,137 Expenses General and administrative (16,471) (1,712) (9,744) (27,927) Share-based compensation — — (9,064) (9,064) Finance income 430 143 773 1,346 Finance expenses (5,789) (805) (8,855) (15,449) Foreign exchange loss (77,235) (2,563) (7) (79,805) Recovery of value added taxes 7,564 1,322 — 8,886 Other expenses (3,825) (876) — (4,701) Income (loss) before income taxes 51,058 37,262 (26,897) 61,423 Current tax expense (5,117) (4,558) — (9,675) Deferred tax recovery 418 332 — 750 Net income (loss) $ 46,359 $ 33,036 $ (26,897) $ 52,498 Assets Current $ 72,080 $ 31,516 $ 23,945 127,541 Non-current 340,487 26,364 2,707 369,558 Total Assets $ 412,567 $ 57,880 $ 26,652 $ 497,099 Total Liabilities $ 102,789 $ 19,467 $ 160,768 283,024 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory [Abstract] | |
Components of Inventories | December 31, 2021 December 31, 2020 Supplies and consumables $ 19,144 $ 15,619 Stockpiles 2,880 3,569 Work in progress 1,658 5,234 Finished goods 2,337 1,074 $ 26,019 $ 25,496 |
Other Current Assets (Tables)
Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Schedule of Other Current Assets | December 31, 2021 December 31, 2020 Advances to suppliers $ 402 $ 500 Prepaid expenses 5,865 2,635 Advances to employees 458 2,091 Value added taxes recoverable (1) 15,109 13,958 $ 21,834 $ 19,184 (1) During the year ended December 31, 2020, the Company recognized a recovery of $8.9 million in net income related to value added taxes based on the tax treatment applicable to depletion charges. This recovery during 2020 was recognized as a result of a study conducted to revisit certain tax positions, which concluded that it is probable that additional tax credits are available to be used to offset a variety of taxes. No additional value added tax recoveries were recognized in 2021. |
Mineral, Property, Plant and _2
Mineral, Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, plant and equipment [abstract] | |
Schedule of Mineral, Property, Plant and Equipment | Items of mineral, property, plant and equipment are depreciated on a straight-line method based on the estimated economic useful life of each component as follows: Buildings Lessor of life of mine or up to 25 years Mining equipment 4 years Mobile equipment & other assets 5 years Mineral properties Units of production Mine closure and rehabilitation costs Units of production or period until remediation Right of use assets Shorter of the term of lease and life of asset Buildings Mining Equipment Mineral Projects in Equipment & Other Assets Mine Closure Costs Right-of-Use Assets Total Cost: Balance, December 31, 2019 $ 17,609 $ 103,175 $ 261,392 $ 52,705 $ 9,481 $ 14,107 $ 7,231 $ 465,700 Additions 54 10,515 6,747 81,332 18,942 197 2,982 120,769 Disposals — (16,671) — (80) (522) (3,803) (291) (21,367) Transfers 1,546 19,940 56,346 (64,888) (12,958) — 14 — Foreign exchange (4,327) (24,257) (59,173) (12,297) (2,139) (2,965) (1,614) (106,772) Balance, December 31, 2020 14,882 92,702 265,312 56,772 12,804 7,536 8,322 458,330 Additions 19 7,538 7,580 130,821 26,826 5,162 10,425 188,371 Disposals — (1,004) — (1,821) (10) — (575) (3,410) Transfers 4,626 33,217 74,951 (94,599) (18,195) — — — Foreign exchange (1,175) (7,678) (20,942) (4,867) (1,118) (688) (874) (37,342) Balance, December 31, 2021 $ 18,352 $ 124,775 $ 326,901 $ 86,306 $ 20,307 $ 12,010 $ 17,298 $ 605,949 Accumulated depreciation: Balance, December 31, 2019 $ (4,047) $ (25,599) $ (85,293) $ — $ (4,572) $ (2,958) $ (3,715) $ (126,184) Depreciation expense (785) (10,882) (24,597) — (1,317) (1,029) (3,865) $ (42,475) Disposals — 14,999 — — 446 — 168 $ 15,613 Foreign exchange 916 5,827 19,351 — 860 672 792 $ 28,418 Balance, December 31, 2020 (3,916) (15,655) (90,539) — (4,583) (3,315) (6,620) (124,628) Depreciation expense (808) (12,664) (26,475) — (1,489) (985) (4,869) (47,290) Disposals — 913 — — 3 — 413 1,329 Foreign exchange 296 1,463 7,125 — 336 260 588 10,068 Balance, December 31, 2021 $ (4,428) $ (25,943) $ (109,889) $ — $ (5,733) $ (4,040) $ (10,488) $ (160,521) Net book value, December 31, 2020 $ 10,966 $ 77,047 $ 174,773 $ 56,772 $ 8,221 $ 4,221 $ 1,702 $ 333,702 Net book value, December 31, 2021 $ 13,924 $ 98,832 $ 217,012 $ 86,306 $ 14,574 $ 7,970 $ 6,810 $ 445,428 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | December 31, 2021 December 31, 2020 Trade suppliers $ 24,012 $ 14,480 Payroll and labour related liabilities 26,248 17,914 Value added tax and other tax payable 9,664 9,365 Other accrued liabilities 6,622 5,484 $ 66,546 $ 47,243 |
Loans and Borrowings (Tables)
Loans and Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Financial Instruments [Abstract] | |
Detailed Information on Loans and Borrowings | Carrying value, Description Denomination Security Time to Coupon rate Principal to be repaid December 31, December 31, Senior credit facility USD Secured 39 months LIBOR + 2.25% - 4.25% $ 50,000 $ 48,303 $ 148,386 Equipment finance loans USD Secured 5 months - 48 months 5.00% - 7.95% 5,759 5,805 5,605 Equipment finance loans EURO Secured 6 months - 54 months 5.50% - 7.00% 2,005 2,005 1,791 Bank loan (MCSA) BRL Unsecured 59 months CDI + 0.50% 3,458 3,137 3,980 Line of credit (MCSA) BRL Unsecured 0 CDI + 9.00% — — 1,447 Lines of credit (MCSA) BRL Unsecured 0 8.60% - 14.30% — — 4,221 Equipment finance loan (Plural) BRL Secured 0 CDI + 7.00% — — 1,065 Equipment finance loans BRL Secured 0 11.88% - 16.49% — — 1,607 Total $ 61,222 $ 59,250 $ 168,102 Current portion $ 4,344 $ 12,539 Non-current portion $ 54,906 $ 155,563 The movements in loans and borrowings during the years ended December 31, 2021 and 2020 are comprised of the following: December 31, 2021 December 31, 2020 Balance, beginning of year $ 168,102 $ 159,370 Proceeds from new senior revolving credit facility, net — 13,652 Proceeds from new equipment finance loans 4,826 19,278 Proceeds from new lines of credit 645 36,726 Principal and interest payments (117,404) (67,118) Interest expenses 5,177 9,921 Foreign exchange (2,096) (3,727) Balance, end of year $ 59,250 $ 168,102 |
Repayments of the Principal Portion of Loans and Borrowings | Debt Repayments Repayments of the principal portion of loans and borrowings is as follows: December 31, 2021 2022 (1) 54,282 2023 2,917 2024 1,602 2025 1,615 2026 and beyond 806 $ 61,222 (1) Includes $50.0 million of the New Revolving Credit Facility repaid in February 2022 which does not mature until March 31, 2025. The table below shows the Company's maturity of non-derivative financial liabilities on December 31, 2021: Non-derivative financial liabilities Carrying Contractual cash flows Up to 1 - 2 3 - 5 More than Loans and borrowings (including interest) $ 59,250 $ 62,041 $ 54,789 $ 3,066 $ 4,186 $ — Accounts payable and accrued liabilities 66,546 66,546 66,546 — — — Other non-current liabilities 5,067 16,246 308 7,302 7,984 652 Leases 7,110 7,265 4,867 1,770 628 — Total $ 137,973 $ 152,098 $ 126,510 $ 12,138 $ 12,798 $ 652 |
Provision for rehabilitation _2
Provision for rehabilitation and closure costs (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
Reconciliation of Provision for Rehabilitation and Closure Costs | December 31, 2021 December 31, 2020 Balance, beginning of year 18,970 $ 30,197 Change in estimates 2,225 (3,803) Accretion expense 1,077 902 Settled (2,039) (1,585) Foreign exchange (1,196) (6,741) Balance, end of year $ 19,037 18,970 |
Other Non-current Liabilities (
Other Non-current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Schedule of Other Non-current Liabilities | December 31, 2021 December 31, 2020 Cash-settled equity awards (Note 14(b) and (c)) $ 2,524 $ — Value added tax and other taxes payable 861 1,299 Income taxes payable 2,935 169 Provision for legal and tax matters 2,331 2,480 Other liabilities 2,542 1,666 $ 11,193 $ 5,614 |
Share Capital (Tables)
Share Capital (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share Capital , Reserves, Other Equity Interest, Share-Based Payment Arrangements And Earnings Per Share [Abstract] | |
Schedule of Number and Weighted Average Exercise Price of Stock Options | Number of Weighted Average Exercise Price Outstanding stock options, December 31, 2019 5,061,417 6.23 Issued 489,295 15.38 Exercised (908,949) 3.13 Outstanding stock options, December 31, 2020 4,641,763 $ 7.91 Issued 316,910 15.66 Exercised (725,121) 4.64 Cancelled (31,163) 15.78 Outstanding stock options, December 31, 2021 4,202,389 $ 8.98 As at December 31, 2021, the following stock options were outstanding: Expiry Date Number of Weighted Average Vested and Exercisable Number of Stock Options Weighted Average Remaining Life in Years May 15, 2022 190,334 $ 1.50 USD 190,334 0.37 July 10, 2022 60,000 1.50 USD 60,000 0.52 November 24, 2022 159,000 6.48 CAD 159,000 0.90 December 7, 2022 1,142,501 6.74 CAD 1,142,501 0.93 January 18, 2023 60,000 7.95 CAD 60,000 1.05 June 19, 2023 104,000 10.25 CAD 104,000 1.47 July 16, 2023 100,000 9.01 CAD 100,000 1.54 December 31, 2023 1,004,828 9.76 CAD 1,004,828 2.00 January 2, 2024 125,000 9.80 CAD 125,000 2.01 August 15, 2024 20,000 21.09 CAD 20,000 2.62 December 12, 2024 448,951 20.52 CAD 292,203 2.95 January 2, 2025 73,456 23.42 CAD 53,456 3.01 December 17, 2025 397,409 18.90 CAD 136,980 3.96 March 18, 2026 50,000 24.45 CAD — 4.21 August 19, 2026 17,514 23.37 CAD — 4.64 December 15, 2026 249,396 18.69 CAD 28,959 4.96 4,202,389 $ 8.98 USD 3,477,261 2.06 |
Schedule of Number and Weighted Average Remaining Life of Stock Options | As at December 31, 2021, the following stock options were outstanding: Expiry Date Number of Weighted Average Vested and Exercisable Number of Stock Options Weighted Average Remaining Life in Years May 15, 2022 190,334 $ 1.50 USD 190,334 0.37 July 10, 2022 60,000 1.50 USD 60,000 0.52 November 24, 2022 159,000 6.48 CAD 159,000 0.90 December 7, 2022 1,142,501 6.74 CAD 1,142,501 0.93 January 18, 2023 60,000 7.95 CAD 60,000 1.05 June 19, 2023 104,000 10.25 CAD 104,000 1.47 July 16, 2023 100,000 9.01 CAD 100,000 1.54 December 31, 2023 1,004,828 9.76 CAD 1,004,828 2.00 January 2, 2024 125,000 9.80 CAD 125,000 2.01 August 15, 2024 20,000 21.09 CAD 20,000 2.62 December 12, 2024 448,951 20.52 CAD 292,203 2.95 January 2, 2025 73,456 23.42 CAD 53,456 3.01 December 17, 2025 397,409 18.90 CAD 136,980 3.96 March 18, 2026 50,000 24.45 CAD — 4.21 August 19, 2026 17,514 23.37 CAD — 4.64 December 15, 2026 249,396 18.69 CAD 28,959 4.96 4,202,389 $ 8.98 USD 3,477,261 2.06 |
Weighted Average Inputs in Fair Value Measurement of Stock Options | The weighted average inputs used in the measurement of fair values at grant date of the options are the following: 2021 2020 Expected term (years) 3.0 3.0 Forfeiture rate — % — % Volatility 56 % 53 % Dividend yield — % — % Risk-free interest rate 1.10 % 0.58 % Weighted-average fair value per option $ 5.57 $ 6.00 |
Schedule of PSUs Issued and Outstanding | The continuity of PSUs issued and outstanding is as follows: Year ended December 31, 2021 2020 Outstanding balance, beginning of year 727,761 437,463 Issued 310,287 290,298 Settled (223,231) — Cancelled (21,774) — Outstanding balance, end of year 793,043 727,761 |
Expense Associated With Each Component | Year ended December 31, 2021 2020 Stock options $ 2,925 $ 3,864 Performance share unit plan 4,124 3,900 Deferred share unit plan 734 1,300 Restricted share unit plan 65 — Share-based compensation (1) $ 7,848 $ 9,064 |
Schedule of Net Income per Share | Year ended December 31, 2021 2020 Weighted average number of common shares outstanding 88,602,367 86,368,535 Dilutive effects of: Warrants — 2,397,518 Stock options 2,353,584 2,355,933 Share units 7,501 1,091,642 Weighted average number of diluted common shares outstanding (1) 90,963,452 92,213,628 Net income attributable to owners of the Company $ 201,053 $ 51,622 Basic net income per share 2.27 0.60 Diluted net income per share 2.21 0.56 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue From Contracts With Customers [Abstract] | |
Schedule of Disaggregation of Revenue | Year ended December 31, 2021 2020 Copper Sales within Brazil $ 131,595 $ 161,803 Export sales 295,682 96,852 Adjustments on provisionally priced sales (1) (3,323) 2,233 423,954 260,888 Gold Export sales 58,682 63,188 Amortization of deferred revenue (2) 7,279 — $ 65,961 $ 63,188 $ 489,915 $ 324,076 (1) Under the terms of the Company’s contract with its domestic customer, sales are provisionally priced on the date of sale based on the previous month’s average copper price and subsequently settled based on the average copper price in the month of shipment. Provisionally priced sales to the Company's international customer are settled with a final sales price between one |
Cost of Sales (Tables)
Cost of Sales (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Analysis of income and expense [abstract] | |
Components of Cost of Sales | Year ended December 31, 2021 2020 Materials $ 26,343 $ 18,912 Salaries and benefits 39,497 30,044 Depreciation and depletion 47,002 39,212 Contracted services 21,373 18,463 Maintenance costs 18,162 14,672 Utilities 10,721 8,728 Sales expense 7,243 5,354 Other costs 716 554 $ 171,057 $ 135,939 |
General and Administrative Ex_2
General and Administrative Expenses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Analysis of income and expense [abstract] | |
Schedule of General and Administrative Expenses | Year ended December 31, 2021 2020 Accounting and legal $ 1,625 $ 1,079 Amortization and depreciation 288 136 Office and administration 9,143 7,066 Salaries and consulting fees 16,962 12,206 Incentive payments 7,126 6,116 Other 3,702 1,324 $ 38,846 $ 27,927 |
Finance Expense (Tables)
Finance Expense (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Analysis of income and expense [abstract] | |
Schedule of Finance Expense | Year ended December 31, 2021 2020 Interest on loans and borrowings $ 5,177 $ 9,921 (Gain) loss on interest rate swap derivatives (469) 2,720 Accretion of deferred revenue 1,501 — Accretion of mine closures and rehabilitation provisions 1,077 902 Commitment fees 1,027 484 Interest on lease liabilities 413 229 Other finance expenses 3,433 1,193 $ 12,159 $ 15,449 |
Foreign Exchange Loss (Tables)
Foreign Exchange Loss (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Changes In Foreign Exchange Rates [Abstract] | |
Schedule of Foreign Exchange Gains (Losses) | The following foreign exchange gains (losses) arise as a result of balances and transactions in the Company’s Brazilian subsidiaries that are denominated in currencies other than the Brazilian Reals (BRL$), which is their functional currency. Year ended December 31, 2021 2020 Foreign exchange loss on USD denominated debt in Brazil $ (5,370) $ (24,190) Realized foreign exchange loss on derivative contracts (note 22) (22,240) (20,804) Unrealized foreign exchange gain (loss) on derivative contracts (note 22) 3,911 (34,548) Other 1,731 (263) $ (21,968) $ (79,805) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Taxes [Abstract] | |
Reconciliation of Income Tax Expense | A reconciliation of the income tax expense to the amount calculated using the Company’s combined Canadian federal and provincial statutory income tax rate of 27% (2020 – 27%) is as follows: Year ended December 31, 2021 2020 Net income in the year before tax $ 236,920 $ 61,423 Tax rate 27 % 27 % Income tax expense at statutory rate $ 63,968 $ 16,584 Tax effect of: Difference in tax rate of foreign jurisdictions (29,888) (6,227) Non-taxable items (7,465) (1,792) Change in temporary differences not previously recognized 6,618 (113) Other 1,055 473 Income tax expense $ 34,288 $ 8,925 |
Components of Income Tax Expense | Year ended December 31, 2021 2020 Current income tax: Relating to current income tax charge $ 22,428 $ 9,675 Deferred income tax: Relating to origination and reversal of temporary differences 11,860 (750) Income tax expense recognized in net income $ 34,288 $ 8,925 Income tax expense (recovery) recognized in other comprehensive income 576 (3,073) Total income tax expense $ 34,864 $ 5,852 |
Schedule of Deferred Tax Assets and Liabilities | The general movement in the deferred income tax assets is as follows: Year ended December 31, 2021 2020 At the beginning of the year $ 14,223 $ 13,099 Deferred income tax (expense) recovery (11,860) 750 Income tax expense (recovery) recognized in OCI (576) 3,073 Foreign exchange 528 (2,699) At the end of the year $ 2,315 $ 14,223 Recognized deferred tax and assets and liabilities consist of the following: December 31, 2021 December 31, 2020 Deferred tax assets: Non-capital losses - Brazil $ 1,924 $ 15,688 Foreign exchange - Brazil 8,458 9,412 Other - Brazil 3,409 2,167 Mine closure and rehabilitation provision - Brazil 2,903 3,110 Non-capital losses - Canada 981 737 Financing fees and other - Canada 289 823 17,964 31,937 Deferred tax liabilities: Mineral property, plant and equipment - Brazil (4,986) (6,179) Loans and borrowings - Brazil (8,775) (9,431) Other - Brazil (618) (544) Loans and borrowings - Canada (1,270) (1,560) (15,649) (17,714) Net deferred income tax assets $ 2,315 $ 14,223 |
Schedule of Unrecognized Deductible Temporary Differences | Deferred tax assets of $21.4 million (December 31, 2020 - $13.5 million) have not been recognized for the following deductible temporary differences as it is not probable that the benefits of these temporary differences will be realized : Year ended December 31, 2021 Year ended December 31, 2020 Brazil Canada Brazil Canada Exploration and evaluation assets $ 34,660 $ — $ 37,213 $ — Mineral property, plant and equipment — 922 — 90 Non-capital losses — 44,521 — 22,194 Other — 16,213 — 7,238 $ 34,660 $ 61,656 $ 37,213 $ 29,522 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related Party [Abstract] | |
Remuneration of Key Management Personnel | The remuneration of key management personnel during the year was as follows: Year ended December 31, 2021 2020 Salaries and short-term benefits (1) $ 10,282 $ 7,400 Share-based payments (2) 5,702 5,100 $ 15,984 $ 12,500 (1) Includes annual salary and short-term incentives or bonuses earned in the year. (2) Includes PSUs, RSUs, DSUs and stock option grants. |
Financial instruments (Tables)
Financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Financial Instruments [Abstract] | |
Schedule of Maximum Credit Risk Exposure | Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises principally from the Company’s receivables from customers. The carrying amount of the financial assets below represents the maximum credit risk exposure as at December 31, 2021 and December 31, 2020: December 31, 2021 December 31, 2020 Cash and cash equivalents $ 130,129 $ 62,508 Accounts receivable 30,704 20,353 Deposits and other non-current assets 1,295 595 $ 162,128 $ 83,456 |
Maturity of Non-Derivative Financial Liabilities | Debt Repayments Repayments of the principal portion of loans and borrowings is as follows: December 31, 2021 2022 (1) 54,282 2023 2,917 2024 1,602 2025 1,615 2026 and beyond 806 $ 61,222 (1) Includes $50.0 million of the New Revolving Credit Facility repaid in February 2022 which does not mature until March 31, 2025. The table below shows the Company's maturity of non-derivative financial liabilities on December 31, 2021: Non-derivative financial liabilities Carrying Contractual cash flows Up to 1 - 2 3 - 5 More than Loans and borrowings (including interest) $ 59,250 $ 62,041 $ 54,789 $ 3,066 $ 4,186 $ — Accounts payable and accrued liabilities 66,546 66,546 66,546 — — — Other non-current liabilities 5,067 16,246 308 7,302 7,984 652 Leases 7,110 7,265 4,867 1,770 628 — Total $ 137,973 $ 152,098 $ 126,510 $ 12,138 $ 12,798 $ 652 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Supplemental Cash Flow Information | Year ended December 31, 2021 2020 Net change in non-cash working capital items: Accounts receivable $ (12,180) $ (13,266) Inventories (2,325) (6,360) Other assets (8,297) 6,858 Accounts payable and accrued liabilities 10,366 (3,885) Value added, payroll and other taxes (2,662) 7,121 $ (15,098) $ (9,532) Non-cash investing and financing activities: Change in mineral, property, plant and equipment from change in estimates for provision for rehabilitation and closure costs 2,225 (3,803) Additions to property, plant and equipment by leases 10,205 2,439 Non-cash changes in accounts payable in relation to capital expenditures 3,551 (581) Transfer of PSU from equity reserves to liabilities 9,389 — |
Contingencies (Tables)
Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
Schedule of Claims of MCSA and NX Gold | As of December 31, 2021, based on the opinion of its legal advisers, the Company has not recognized a provision for the following claims of MCSA and NX Gold as it is not probable that a cash outflow will occur. December 31, 2021 December 31, 2020 Social security tax (a) $ 3,415 $ 2,879 Taxes (b) 9,531 11,633 Labour 1,219 968 Mining and other (c) 6,791 6,346 $ 20,956 $ 21,826 (a) Social security tax Social security claims relate to potential social security tax payments related to past payments to employees, including profit sharing, and payments made to external contractors. The Company strongly believes, based on precedent court case rulings, that part of the claim will be cancelled after administrative and judicial discussions. The estimated portion of the claim expected to be cancelled of $9.5 million is included in the table above. (b) Tax There are 122 tax claims (2020 – 121 tax claims) against MCSA which were evaluated as possible, but not probable, losses by external legal counsel. The main subjects under discussion for the tax claims involve the validity of tax credits used to offset federal taxes. (c) Mining In June 2019, MCSA was notified of five administrative claims filed by the Nacional Mining Agency regarding alleged differences in the calculation of certain sales taxes on mining revenue by MCSA. The Company, based on the opinion of its legal advisors, does not believe such claims will result in a probable cash outflow. |
Nature of Operations (Details)
Nature of Operations (Details) | 12 Months Ended |
Dec. 31, 2021ha | |
Boa Esperança Property | Pará, Brazil | |
Disclosure of subsidiaries [line items] | |
Area of property used for mining (in ha) | 4,034 |
MCSA | |
Disclosure of subsidiaries [line items] | |
Ownership percentage | 99.60% |
NX Gold | |
Disclosure of subsidiaries [line items] | |
Ownership percentage | 97.60% |
Area of property used for mining (in ha) | 31,096 |
NX Gold | Mato Grosso State, Brazil | |
Disclosure of subsidiaries [line items] | |
Area of property used for mining (in ha) | 620 |
MCSA Mining Complex | MCSA | |
Disclosure of subsidiaries [line items] | |
Ownership percentage | 100.00% |
Boa Esperança Property | MCSA | |
Disclosure of subsidiaries [line items] | |
Ownership percentage | 100.00% |
Basis of Preparation (Details)
Basis of Preparation (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | $ 59,250 | $ 168,102 | $ 159,370 |
Interest rate swap contract | |||
Disclosure of detailed information about borrowings [line items] | |||
Notional amount | $ 50,000 | ||
Fixed interest rate | |||
Disclosure of detailed information about borrowings [line items] | |||
Interest rate (as a percent) | 1.68% | 2.69% | |
Fixed interest rate | Interest rate swap contract | |||
Disclosure of detailed information about borrowings [line items] | |||
Interest rate (as a percent) | 1.68% | ||
Gross carrying amount | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | $ 59,250 | $ 168,102 | |
Senior secured revolving credit facility | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowing facility size | $ 150,000 | ||
Senior secured revolving credit facility | LIBOR | Bottom of range | |||
Disclosure of detailed information about borrowings [line items] | |||
Adjustment to interest rate basis (as a percent) | 2.25% | ||
Senior secured revolving credit facility | LIBOR | Top of range | |||
Disclosure of detailed information about borrowings [line items] | |||
Adjustment to interest rate basis (as a percent) | 4.25% | ||
Senior secured revolving credit facility | Gross carrying amount | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | $ 50,000 |
Significant Accounting Polici_4
Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2021customers | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Number of significant customers | 5 |
Buildings | Top of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 25 years |
Mining equipment | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 4 years |
Mobile equipment & other assets | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 5 years |
Segment Disclosure (Details)
Segment Disclosure (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($)customerssegement | Dec. 31, 2020USD ($)customers | |
Disclosure of operating segments [abstract] | ||
Number of operating segments | segement | 2 | |
Disclosure of operating segments [line items] | ||
Number of customers | customers | 5 | |
Revenue | $ 489,915 | $ 324,076 |
Cost of production | (116,812) | (91,373) |
Depreciation and depletion | (47,002) | (39,212) |
Sales expense | (7,243) | (5,354) |
Cost of sales | (171,057) | (135,939) |
Gross profit | 318,858 | 188,137 |
Expenses | ||
General and administrative | (38,846) | (27,927) |
Share-based compensation | (7,848) | (9,064) |
Finance income | 2,991 | 1,346 |
Finance expense | (12,159) | (15,449) |
Foreign exchange loss | (21,968) | (79,805) |
Recovery of value added taxes | 0 | 8,886 |
NX Gold PMPA transaction fees | (1,219) | 0 |
Other expenses | (2,889) | (4,701) |
Income before income taxes | 236,920 | 61,423 |
Current | (22,428) | (9,675) |
Deferred | (11,860) | 750 |
Net income for the year | 202,632 | 52,498 |
Assets | ||
Current | 208,686 | 127,541 |
Non-current | 481,076 | 369,558 |
Total Assets | 689,762 | 497,099 |
Total Liabilities | $ 294,272 | $ 283,024 |
MCSA (Brazil) | ||
Disclosure of operating segments [line items] | ||
Number of customers | customers | 3 | 2 |
Revenue | $ 423,954 | $ 260,888 |
Cost of production | (96,975) | (73,893) |
Depreciation and depletion | (39,202) | (35,674) |
Sales expense | (6,726) | (4,937) |
Cost of sales | (142,903) | (114,504) |
Gross profit | 281,051 | 146,384 |
Expenses | ||
General and administrative | (20,444) | (16,471) |
Share-based compensation | 0 | 0 |
Finance income | 1,031 | 430 |
Finance expense | (5,622) | (5,789) |
Foreign exchange loss | (21,225) | (77,235) |
Recovery of value added taxes | 7,564 | |
NX Gold PMPA transaction fees | 0 | |
Other expenses | (2,382) | (3,825) |
Income before income taxes | 232,409 | 51,058 |
Current | (15,087) | (5,117) |
Deferred | (11,482) | 418 |
Net income for the year | 205,840 | 46,359 |
Assets | ||
Current | 152,703 | 72,080 |
Non-current | 435,265 | 340,487 |
Total Assets | 587,968 | 412,567 |
Total Liabilities | $ 116,905 | $ 102,789 |
NX Gold (Brazil) | ||
Disclosure of operating segments [line items] | ||
Number of customers | customers | 2 | 1 |
Revenue | $ 65,961 | $ 63,188 |
Cost of production | (19,837) | (17,480) |
Depreciation and depletion | (7,800) | (3,538) |
Sales expense | (517) | (417) |
Cost of sales | (28,154) | (21,435) |
Gross profit | 37,807 | 41,753 |
Expenses | ||
General and administrative | (2,560) | (1,712) |
Share-based compensation | 0 | 0 |
Finance income | 1,092 | 143 |
Finance expense | (889) | (805) |
Foreign exchange loss | (360) | (2,563) |
Recovery of value added taxes | 1,322 | |
NX Gold PMPA transaction fees | (1,219) | |
Other expenses | (507) | (876) |
Income before income taxes | 33,364 | 37,262 |
Current | (4,406) | (4,558) |
Deferred | (378) | 332 |
Net income for the year | 28,580 | 33,036 |
Assets | ||
Current | 35,734 | 31,516 |
Non-current | 45,791 | 26,364 |
Total Assets | 81,525 | 57,880 |
Total Liabilities | 109,679 | 19,467 |
Corporate (Canada) | ||
Disclosure of operating segments [line items] | ||
Revenue | 0 | 0 |
Cost of production | 0 | 0 |
Depreciation and depletion | 0 | 0 |
Sales expense | 0 | |
Cost of sales | 0 | 0 |
Gross profit | 0 | 0 |
Expenses | ||
General and administrative | (15,842) | (9,744) |
Share-based compensation | (7,848) | (9,064) |
Finance income | 868 | 773 |
Finance expense | (5,648) | (8,855) |
Foreign exchange loss | (383) | (7) |
Recovery of value added taxes | 0 | |
NX Gold PMPA transaction fees | 0 | |
Other expenses | 0 | 0 |
Income before income taxes | (28,853) | (26,897) |
Current | (2,935) | 0 |
Deferred | 0 | 0 |
Net income for the year | (31,788) | (26,897) |
Assets | ||
Current | 20,249 | 23,945 |
Non-current | 20 | 2,707 |
Total Assets | 20,269 | 26,652 |
Total Liabilities | $ 67,688 | $ 160,768 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory [Abstract] | ||
Supplies and consumables | $ 19,144 | $ 15,619 |
Stockpiles | 2,880 | 3,569 |
Work in progress | 1,658 | 5,234 |
Finished goods | 2,337 | 1,074 |
Inventories | $ 26,019 | $ 25,496 |
Other Current Assets (Details)
Other Current Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Subclassifications of assets, liabilities and equities [abstract] | ||
Advances to suppliers | $ 402 | $ 500 |
Prepaid expenses | 5,865 | 2,635 |
Advances to employees | 458 | 2,091 |
Value added taxes recoverable | 15,109 | 13,958 |
Other current assets | 21,834 | 19,184 |
Value added taxes recovered | $ 0 | $ 8,900 |
Mineral, Property, Plant and _3
Mineral, Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance at beginning of period | $ 333,702 | |
Balance at end of period | 445,428 | $ 333,702 |
Buildings | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance at beginning of period | 10,966 | |
Balance at end of period | 13,924 | 10,966 |
Mining Equipment | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance at beginning of period | 77,047 | |
Balance at end of period | 98,832 | 77,047 |
Mineral Properties | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance at beginning of period | 174,773 | |
Balance at end of period | 217,012 | 174,773 |
Projects in Progress | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance at beginning of period | 56,772 | |
Balance at end of period | 86,306 | 56,772 |
Equipment & Other Assets | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance at beginning of period | 8,221 | |
Balance at end of period | 14,574 | 8,221 |
Mine Closure Costs | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance at beginning of period | 4,221 | |
Balance at end of period | 7,970 | 4,221 |
Right-of-Use Assets | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance at beginning of period | 1,702 | |
Balance at end of period | 6,810 | 1,702 |
Cost | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance at beginning of period | 458,330 | 465,700 |
Additions | 188,371 | 120,769 |
Disposals | (3,410) | (21,367) |
Transfers | 0 | 0 |
Foreign exchange | (37,342) | (106,772) |
Balance at end of period | 605,949 | 458,330 |
Cost | Buildings | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance at beginning of period | 14,882 | 17,609 |
Additions | 19 | 54 |
Disposals | 0 | 0 |
Transfers | 4,626 | 1,546 |
Foreign exchange | (1,175) | (4,327) |
Balance at end of period | 18,352 | 14,882 |
Cost | Mining Equipment | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance at beginning of period | 92,702 | 103,175 |
Additions | 7,538 | 10,515 |
Disposals | (1,004) | (16,671) |
Transfers | 33,217 | 19,940 |
Foreign exchange | (7,678) | (24,257) |
Balance at end of period | 124,775 | 92,702 |
Cost | Mineral Properties | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance at beginning of period | 265,312 | 261,392 |
Additions | 7,580 | 6,747 |
Disposals | 0 | 0 |
Transfers | 74,951 | 56,346 |
Foreign exchange | (20,942) | (59,173) |
Balance at end of period | 326,901 | 265,312 |
Cost | Projects in Progress | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance at beginning of period | 56,772 | 52,705 |
Additions | 130,821 | 81,332 |
Disposals | (1,821) | (80) |
Transfers | (94,599) | (64,888) |
Foreign exchange | (4,867) | (12,297) |
Balance at end of period | 86,306 | 56,772 |
Cost | Equipment & Other Assets | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance at beginning of period | 12,804 | 9,481 |
Additions | 26,826 | 18,942 |
Disposals | (10) | (522) |
Transfers | (18,195) | (12,958) |
Foreign exchange | (1,118) | (2,139) |
Balance at end of period | 20,307 | 12,804 |
Cost | Mine Closure Costs | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance at beginning of period | 7,536 | 14,107 |
Additions | 5,162 | 197 |
Disposals | 0 | (3,803) |
Transfers | 0 | 0 |
Foreign exchange | (688) | (2,965) |
Balance at end of period | 12,010 | 7,536 |
Cost | Right-of-Use Assets | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance at beginning of period | 8,322 | 7,231 |
Additions | 10,425 | 2,982 |
Disposals | (575) | (291) |
Transfers | 0 | 14 |
Foreign exchange | (874) | (1,614) |
Balance at end of period | 17,298 | 8,322 |
Accumulated depreciation | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance at beginning of period | (124,628) | (126,184) |
Additions | (47,290) | (42,475) |
Disposals | 1,329 | 15,613 |
Foreign exchange | 10,068 | 28,418 |
Balance at end of period | (160,521) | (124,628) |
Accumulated depreciation | Buildings | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance at beginning of period | (3,916) | (4,047) |
Additions | (808) | (785) |
Disposals | 0 | 0 |
Foreign exchange | 296 | 916 |
Balance at end of period | (4,428) | (3,916) |
Accumulated depreciation | Mining Equipment | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance at beginning of period | (15,655) | (25,599) |
Additions | (12,664) | (10,882) |
Disposals | 913 | 14,999 |
Foreign exchange | 1,463 | 5,827 |
Balance at end of period | (25,943) | (15,655) |
Accumulated depreciation | Mineral Properties | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance at beginning of period | (90,539) | (85,293) |
Additions | (26,475) | (24,597) |
Disposals | 0 | 0 |
Foreign exchange | 7,125 | 19,351 |
Balance at end of period | (109,889) | (90,539) |
Accumulated depreciation | Projects in Progress | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance at beginning of period | 0 | 0 |
Additions | 0 | 0 |
Disposals | 0 | 0 |
Foreign exchange | 0 | 0 |
Balance at end of period | 0 | 0 |
Accumulated depreciation | Equipment & Other Assets | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance at beginning of period | (4,583) | (4,572) |
Additions | (1,489) | (1,317) |
Disposals | 3 | 446 |
Foreign exchange | 336 | 860 |
Balance at end of period | (5,733) | (4,583) |
Accumulated depreciation | Mine Closure Costs | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance at beginning of period | (3,315) | (2,958) |
Additions | (985) | (1,029) |
Disposals | 0 | 0 |
Foreign exchange | 260 | 672 |
Balance at end of period | (4,040) | (3,315) |
Accumulated depreciation | Right-of-Use Assets | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance at beginning of period | (6,620) | (3,715) |
Additions | (4,869) | (3,865) |
Disposals | 413 | 168 |
Foreign exchange | 588 | 792 |
Balance at end of period | $ (10,488) | $ (6,620) |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Subclassifications of assets, liabilities and equities [abstract] | ||
Trade suppliers | $ 24,012 | $ 14,480 |
Payroll and labour related liabilities | 26,248 | 17,914 |
Value added tax and other tax payable | 9,664 | 9,365 |
Other accrued liabilities | 6,622 | 5,484 |
Accounts payable and accrued liabilities | $ 66,546 | $ 47,243 |
Loans and Borrowings - Schedule
Loans and Borrowings - Schedule (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about borrowings [line items] | |||
Principal to be repaid | $ 61,222 | ||
Carrying value, including accrued interest | 59,250 | $ 168,102 | $ 159,370 |
Current portion | 4,344 | 12,539 | |
Non-current portion | $ 54,906 | $ 155,563 | |
Senior Credit Facility | |||
Disclosure of detailed information about borrowings [line items] | |||
Time to Maturity | 39 months | ||
Principal to be repaid | $ 50,000 | ||
Senior Credit Facility | Bottom of range | LIBOR | |||
Disclosure of detailed information about borrowings [line items] | |||
Coupon rate | 2.25% | 2.50% | |
Senior Credit Facility | Top of range | LIBOR | |||
Disclosure of detailed information about borrowings [line items] | |||
Coupon rate | 4.25% | 4.25% | |
Equipment Finance Loans USD | |||
Disclosure of detailed information about borrowings [line items] | |||
Principal to be repaid | $ 5,759 | ||
Equipment Finance Loans USD | Bottom of range | |||
Disclosure of detailed information about borrowings [line items] | |||
Time to Maturity | 5 months | ||
Coupon rate | 5.00% | ||
Equipment Finance Loans USD | Top of range | |||
Disclosure of detailed information about borrowings [line items] | |||
Time to Maturity | 48 months | ||
Coupon rate | 7.95% | ||
Equipment Finance Loans EUR | |||
Disclosure of detailed information about borrowings [line items] | |||
Principal to be repaid | $ 2,005 | ||
Equipment Finance Loans EUR | Bottom of range | |||
Disclosure of detailed information about borrowings [line items] | |||
Time to Maturity | 6 months | ||
Coupon rate | 5.50% | ||
Equipment Finance Loans EUR | Top of range | |||
Disclosure of detailed information about borrowings [line items] | |||
Time to Maturity | 54 months | ||
Coupon rate | 7.00% | ||
Bank Loan (MCSA) | |||
Disclosure of detailed information about borrowings [line items] | |||
Time to Maturity | 59 months | ||
Principal to be repaid | $ 3,458 | ||
Bank Loan (MCSA) | Brazilian Interbank Deposit Rate (CDI) | |||
Disclosure of detailed information about borrowings [line items] | |||
Coupon rate | 0.50% | ||
Line of Credit (MCSA) | |||
Disclosure of detailed information about borrowings [line items] | |||
Principal to be repaid | $ 0 | ||
Line of Credit (MCSA) | Brazilian Interbank Deposit Rate (CDI) | |||
Disclosure of detailed information about borrowings [line items] | |||
Coupon rate | 9.00% | ||
Lines of Credit (MCSA) | |||
Disclosure of detailed information about borrowings [line items] | |||
Principal to be repaid | $ 0 | ||
Lines of Credit (MCSA) | Bottom of range | |||
Disclosure of detailed information about borrowings [line items] | |||
Coupon rate | 8.60% | ||
Lines of Credit (MCSA) | Top of range | |||
Disclosure of detailed information about borrowings [line items] | |||
Coupon rate | 14.30% | ||
Equipment Finance Loans (Plural) | |||
Disclosure of detailed information about borrowings [line items] | |||
Time to Maturity | 24 months | ||
Principal to be repaid | $ 0 | ||
Carrying value, including accrued interest | $ 12,000 | ||
Equipment Finance Loans (Plural) | Brazilian Interbank Deposit Rate (CDI) | |||
Disclosure of detailed information about borrowings [line items] | |||
Coupon rate | 7.00% | 7.00% | |
Equipment Finance Loans BRL | |||
Disclosure of detailed information about borrowings [line items] | |||
Principal to be repaid | $ 0 | ||
Equipment Finance Loans BRL | Bottom of range | |||
Disclosure of detailed information about borrowings [line items] | |||
Coupon rate | 11.88% | ||
Equipment Finance Loans BRL | Top of range | |||
Disclosure of detailed information about borrowings [line items] | |||
Coupon rate | 16.49% | ||
Carrying amount | |||
Disclosure of detailed information about borrowings [line items] | |||
Carrying value, including accrued interest | $ 59,250 | $ 168,102 | |
Current portion | 4,344 | 12,539 | |
Non-current portion | 54,906 | 155,563 | |
Carrying amount | Senior Credit Facility | |||
Disclosure of detailed information about borrowings [line items] | |||
Carrying value, including accrued interest | 48,303 | 148,386 | |
Carrying amount | Equipment Finance Loans USD | |||
Disclosure of detailed information about borrowings [line items] | |||
Carrying value, including accrued interest | 5,805 | 5,605 | |
Carrying amount | Equipment Finance Loans EUR | |||
Disclosure of detailed information about borrowings [line items] | |||
Carrying value, including accrued interest | 2,005 | 1,791 | |
Carrying amount | Bank Loan (MCSA) | |||
Disclosure of detailed information about borrowings [line items] | |||
Carrying value, including accrued interest | 3,137 | 3,980 | |
Carrying amount | Line of Credit (MCSA) | |||
Disclosure of detailed information about borrowings [line items] | |||
Carrying value, including accrued interest | 0 | 1,447 | |
Carrying amount | Lines of Credit (MCSA) | |||
Disclosure of detailed information about borrowings [line items] | |||
Carrying value, including accrued interest | 0 | 4,221 | |
Carrying amount | Equipment Finance Loans (Plural) | |||
Disclosure of detailed information about borrowings [line items] | |||
Carrying value, including accrued interest | 0 | 1,065 | |
Carrying amount | Equipment Finance Loans BRL | |||
Disclosure of detailed information about borrowings [line items] | |||
Carrying value, including accrued interest | $ 0 | $ 1,607 |
Loans and Borrowings - Movement
Loans and Borrowings - Movement (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of detailed information about borrowings [line items] | ||
Balance, beginning of year | $ 168,102 | $ 159,370 |
New loans and borrowings, net of finance costs | 5,471 | 68,997 |
Principal and interest payments | (117,404) | (67,118) |
Interest expenses | 5,177 | 9,921 |
Foreign exchange loss | (2,096) | (3,727) |
Balance, end of year | 59,250 | 168,102 |
Senior secured revolving credit facility | ||
Disclosure of detailed information about borrowings [line items] | ||
New loans and borrowings, net of finance costs | 0 | 13,652 |
Equipment Finance Loans | ||
Disclosure of detailed information about borrowings [line items] | ||
New loans and borrowings, net of finance costs | 4,826 | 19,278 |
Lines of Credit | ||
Disclosure of detailed information about borrowings [line items] | ||
New loans and borrowings, net of finance costs | $ 645 | $ 36,726 |
Loans and Borrowings - Senior C
Loans and Borrowings - Senior Credit Facility (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Feb. 28, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | $ 59,250 | $ 168,102 | $ 159,370 | |
Repayments of borrowings | 113,240 | 57,425 | ||
Gross carrying amount | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | $ 59,250 | $ 168,102 | ||
Fixed interest rate | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Interest rate (as a percent) | 1.68% | 2.69% | ||
Senior Credit Facility | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowing facility size | $ 150,000 | |||
Senior Credit Facility | Gross carrying amount | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | $ 48,303 | $ 148,386 | ||
Senior Credit Facility | LIBOR | Bottom of range | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Adjustment to interest rate basis (as a percent) | 2.25% | 2.50% | ||
Senior Credit Facility | LIBOR | Top of range | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Adjustment to interest rate basis (as a percent) | 4.25% | 4.25% | ||
Term Facility | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | $ 75,000 | |||
Revolving Credit Facility | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 75,000 | |||
Senior secured revolving credit facility | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowing facility size | $ 150,000 | |||
Senior secured revolving credit facility | Gross carrying amount | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | $ 50,000 | |||
Senior secured revolving credit facility | Closing an offering | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowing facility size | $ 75,000 | |||
Repayments of borrowings | 50,000 | |||
Notional amount | 400,000 | |||
Accordion option | 100,000 | |||
Senior secured revolving credit facility | Closing an offering | Gross carrying amount | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 50,000 | |||
Senior secured revolving credit facility | Bottom of range | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings, undrawn commitment fees (as a percent) | 0.56% | |||
Senior secured revolving credit facility | Top of range | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings, undrawn commitment fees (as a percent) | 1.06% | |||
Senior secured revolving credit facility | LIBOR | Bottom of range | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Adjustment to interest rate basis (as a percent) | 2.25% | |||
Senior secured revolving credit facility | LIBOR | Top of range | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Adjustment to interest rate basis (as a percent) | 4.25% | |||
New revolving credit facility | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowing facility size | $ 150,000 | |||
Repayments of borrowings | 100,000 | |||
Notional amount | 50,000 | $ 50,000 | ||
New revolving credit facility | Gross carrying amount | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | $ 50,000 | |||
New revolving credit facility | Closing an offering | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowing facility size | 75,000 | |||
Accordion option | 100,000 | |||
New revolving credit facility | Closing an offering | Gross carrying amount | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | $ 50,000 |
Loans and Borrowings - Bank Loa
Loans and Borrowings - Bank Loan and Equipment Finance Loans (Details) | 12 Months Ended | ||
Dec. 31, 2021USD ($)$ / $ | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | $ 59,250,000 | $ 168,102,000 | $ 159,370,000 |
Exchange rate | $ / $ | 1.2677 | ||
Bank Loan (MCSA) | |||
Disclosure of detailed information about borrowings [line items] | |||
Term of borrowing | 59 months | ||
Bank Loan (MCSA) | Effective Interest Rate | |||
Disclosure of detailed information about borrowings [line items] | |||
Interest rate (as a percent) | 11.50% | ||
Bank Loan (MCSA) | Brazilian Interbank Deposit Rate (CDI) | |||
Disclosure of detailed information about borrowings [line items] | |||
Adjustment to interest rate basis (as a percent) | 0.50% | ||
Equipment Finance Loans (Plural) | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | $ 12,000,000 | ||
Term of borrowing | 24 months | ||
Equipment Finance Loans (Plural) | Interest rate risk | |||
Disclosure of detailed information about borrowings [line items] | |||
Interest rate (as a percent) | 9.90% | ||
Nominal amount of hedging instrument | 12,000,000 | ||
Equipment Finance Loans (Plural) | Foreign exchange currency risk | |||
Disclosure of detailed information about borrowings [line items] | |||
Nominal amount of hedging instrument | 12,000,000 | ||
Exchange rate | 3.9500 | ||
Equipment Finance Loans (Plural) | Brazilian Interbank Deposit Rate (CDI) | |||
Disclosure of detailed information about borrowings [line items] | |||
Adjustment to interest rate basis (as a percent) | 7.00% | 7.00% |
Loans and Borrowings - MCSA and
Loans and Borrowings - MCSA and NX Gold Lines of Credit (Details) $ in Thousands, R$ in Millions | 12 Months Ended | ||||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020BRL (R$) | Dec. 31, 2020BRL (R$) | Dec. 31, 2019USD ($) | |
Disclosure of detailed information about borrowings [line items] | |||||
Borrowings | $ 59,250 | $ 168,102 | $ 159,370 | ||
Repayments of borrowings | 113,240 | 57,425 | |||
Gross carrying amount | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Borrowings | $ 59,250 | $ 168,102 | |||
Line of credit | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Borrowing facility size | R$ | R$ 154.6 | ||||
Repayments of borrowings | R$ | R$ 162.2 | ||||
Line of credit | Bottom of range | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Interest rate (as a percent) | 9.60% | 9.60% | |||
Line of credit | Top of range | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Interest rate (as a percent) | 24.34% | 24.34% | |||
Line of credit | Gross carrying amount | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Borrowings | $ 4,200 | R$ 21.8 |
Loans and Borrowings - Debt Rep
Loans and Borrowings - Debt Repayments (Details) - USD ($) $ in Thousands | Feb. 28, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | $ 59,250 | $ 168,102 | $ 159,370 | |
Gross carrying amount | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 59,250 | $ 168,102 | ||
Loans and borrowings | Gross carrying amount | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 61,222 | |||
Loans and borrowings | 2022 | Gross carrying amount | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 54,282 | |||
Loans and borrowings | 2023 | Gross carrying amount | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 2,917 | |||
Loans and borrowings | 2024 | Gross carrying amount | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 1,602 | |||
Loans and borrowings | 2025 | Gross carrying amount | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 1,615 | |||
Loans and borrowings | 2026 and beyond | Gross carrying amount | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 806 | |||
New revolving credit facility | Gross carrying amount | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | $ 50,000 | |||
New revolving credit facility | Gross carrying amount | Closing an offering | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | $ 50,000 |
Deferred Revenue (Details)
Deferred Revenue (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Aug. 31, 2021USD ($)oz$ / Ounce$ / meter | Dec. 31, 2021USD ($)oz$ / Ounce | Dec. 31, 2020USD ($) | |
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | |||
Current portion of deferred revenue | $ 10,511 | $ 0 | |
Non-current deferred revenue | 83,711 | 0 | |
Transaction fees | 1,219 | 0 | |
Gold | |||
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | |||
Deferred revenue | 94,200 | ||
Amortization of deferred revenue | 7,279 | $ 0 | |
Current portion of deferred revenue | 10,500 | ||
Non-current deferred revenue | 83,700 | ||
Transaction fees | $ 1,200 | ||
Royal Gold | Performance obligations satisfied at point in time | |||
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | |||
Quantity of gold required to be received (in ounce) | oz | 49,000 | ||
Royal Gold | Gold | |||
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | |||
Contribution towards environmental, social and governance initiatives, price per ounce of gold delivered (in usd per ounce) | $ / Ounce | 5 | ||
Royal Gold | Gold | Through End of 2024 | |||
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | |||
Payment obligation | $ 5,000 | ||
Payment obligation, rate (in usd per unit) | $ / Ounce | 20 | ||
Royal Gold | Gold | 2022 Through End of 2024 | |||
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | |||
Payment obligation | $ 5,000 | ||
Payment obligation, rate (in usd per unit) | $ / meter | 100 | ||
Royal Gold | Gold | Performance obligations satisfied at point in time | |||
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | |||
Percentage of prevailing spot gold price | 20.00% | ||
Royal Gold | Gold | Performance obligations satisfied over time | |||
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | |||
Percentage of prevailing spot gold price | 40.00% | ||
Royal Gold | |||
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | |||
Gold, estimated long-term price (in usd per ounce) | $ / Ounce | 1,750 | ||
Royal Gold | Performance obligations satisfied at point in time | |||
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | |||
Percentage of gold to be produced | 25.00% | ||
Royal Gold | Performance obligations satisfied over time | |||
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | |||
Percentage of gold to be produced | 10.00% | ||
Royal Gold | Gold | |||
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | |||
Deferred revenue | $ 100,000 | ||
Quantity delivered (in ounce) | oz | 5,173 | ||
Average cash consideration (in usd per ounce) | $ / Ounce | 353 | ||
Amortization of deferred revenue | $ 7,300 | ||
Royal Gold | Gold | Performance obligations satisfied at point in time | |||
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | |||
Quantity of gold required to be delivered (in ounce) | oz | 93,000 |
Provision for rehabilitation _3
Provision for rehabilitation and closure costs - Reconciliation (Details) - Provision for rehabilitation and closure costs - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of changes in other provisions [abstract] | ||
Balance, beginning of year | $ 18,970 | $ 30,197 |
Change in estimates | 2,225 | (3,803) |
Accretion expense | 1,077 | 902 |
Settled | (2,039) | (1,585) |
Foreign exchange | (1,196) | (6,741) |
Balance, end of year | $ 19,037 | $ 18,970 |
Provision for rehabilitation _4
Provision for rehabilitation and closure costs - Additional Information (Details) - Provision for rehabilitation and closure costs $ in Millions | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Disclosure of other provisions [line items] | ||
Undiscounted inflation-adjusted provisions | $ 65.5 | $ 37 |
MCSA | ||
Disclosure of other provisions [line items] | ||
Undiscounted inflation-adjusted provisions | 59.4 | 31.4 |
NX Gold | ||
Disclosure of other provisions [line items] | ||
Undiscounted inflation-adjusted provisions | $ 6.1 | $ 5.6 |
Bottom of range | Discount rate | ||
Disclosure of other provisions [line items] | ||
Significant unobservable input, liabilities | 0.0823 | 0.0575 |
Bottom of range | Inflation factor | ||
Disclosure of other provisions [line items] | ||
Significant unobservable input, liabilities | 0.0300 | 0.0325 |
Top of range | Discount rate | ||
Disclosure of other provisions [line items] | ||
Significant unobservable input, liabilities | 0.0881 | 0.0737 |
Top of range | Inflation factor | ||
Disclosure of other provisions [line items] | ||
Significant unobservable input, liabilities | 0.0503 | 0.0350 |
Other Non-current Liabilities_2
Other Non-current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Subclassifications of assets, liabilities and equities [abstract] | ||
Cash-settled equity awards (Note 14(b) and (c)) | $ 2,524 | $ 0 |
Value added tax and other taxes payable | 861 | 1,299 |
Income taxes payable | 2,935 | 169 |
Provision for legal and tax matters | 2,331 | 2,480 |
Other liabilities | 2,542 | 1,666 |
Other non-current liabilities | $ 11,193 | $ 5,614 |
Share Capital - General, Additi
Share Capital - General, Additional Information (Details) | Dec. 31, 2021shares |
Common shares | |
Disclosure of classes of share capital [line items] | |
Number of shares outstanding | 90,204,378 |
Share Capital - Options, Additi
Share Capital - Options, Additional information (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($)shares$ / $$ / shares | Dec. 31, 2020USD ($)shares$ / shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of options granted (in shares) | shares | 316,910 | 489,295 |
Weighted average exercise price (in usd per share) | $ / shares | $ 15.66 | $ 15.38 |
Expiration period | 5 years | |
Total fair value of options on grant date | $ 1,800 | |
Exchange rate | $ / $ | 1.2677 | |
Share-based compensation | $ 7,848 | $ 9,064 |
Weighted average | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Share price of options exercised (in usd per share) | $ / shares | $ 19.01 | $ 13.74 |
Stock options | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Vesting period | 3 years | |
Share-based compensation | $ 2,925 | $ 3,864 |
Share Capital - Rollforward of
Share Capital - Rollforward of Stock Options (Details) | 12 Months Ended | |
Dec. 31, 2021shares$ / shares | Dec. 31, 2020shares$ / shares | |
Share Capital , Reserves, Other Equity Interest, Share-Based Payment Arrangements And Earnings Per Share [Abstract] | ||
Number of Stock Options Outstanding, beginning of period (in shares) | shares | 4,641,763 | 5,061,417 |
Number of Stock Options Issued (in shares) | shares | 316,910 | 489,295 |
Number of Stock Options Exercised (in shares) | shares | (725,121) | (908,949) |
Number of Stock Options Cancelled (in shares) | shares | (31,163) | |
Number of Stock Options Outstanding, end of period (in shares) | shares | 4,202,389 | 4,641,763 |
Weighted Average Exercise Price, Outstanding, beginning of period (in usd per share) | $ / shares | $ 7.91 | $ 6.23 |
Weighted Average Exercise Price, Issued (in usd per share) | $ / shares | 15.66 | 15.38 |
Weighted Average Exercise Price, Exercised (in usd per share) | $ / shares | 4.64 | 3.13 |
Weighted Average Exercise Price, Cancelled (in usd per share) | $ / shares | 15.78 | |
Weighted Average Exercise Price, Outstanding, end of period (in usd per share) | $ / shares | $ 8.98 | $ 7.91 |
Share Capital - Stock Options O
Share Capital - Stock Options Outstanding (Details) | 12 Months Ended | |||
Dec. 31, 2021shares$ / shares | Dec. 31, 2021shares$ / shares | Dec. 31, 2020shares$ / shares | Dec. 31, 2019shares$ / shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Number of Stock Options (in shares) | 4,202,389 | 4,202,389 | 4,641,763 | 5,061,417 |
Weighted Exercise Price (in dollars per share) | $ / shares | $ 8.98 | $ 7.91 | $ 6.23 | |
Vested and Exercisable Number of Stock Options (in shares) | 3,477,261 | 3,477,261 | ||
Weighted Average Remaining Life in Years | 2 years 21 days | |||
May 15, 2022 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Number of Stock Options (in shares) | 190,334 | 190,334 | ||
Weighted Exercise Price (in dollars per share) | $ / shares | $ 1.50 | |||
Vested and Exercisable Number of Stock Options (in shares) | 190,334 | 190,334 | ||
Weighted Average Remaining Life in Years | 4 months 13 days | |||
July 10, 2022 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Number of Stock Options (in shares) | 60,000 | 60,000 | ||
Weighted Exercise Price (in dollars per share) | $ / shares | $ 1.50 | |||
Vested and Exercisable Number of Stock Options (in shares) | 60,000 | 60,000 | ||
Weighted Average Remaining Life in Years | 6 months 7 days | |||
November 24, 2022 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Number of Stock Options (in shares) | 159,000 | 159,000 | ||
Weighted Exercise Price (in dollars per share) | $ / shares | $ 6.48 | |||
Vested and Exercisable Number of Stock Options (in shares) | 159,000 | 159,000 | ||
Weighted Average Remaining Life in Years | 10 months 24 days | |||
December 7, 2022 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Number of Stock Options (in shares) | 1,142,501 | 1,142,501 | ||
Weighted Exercise Price (in dollars per share) | $ / shares | $ 6.74 | |||
Vested and Exercisable Number of Stock Options (in shares) | 1,142,501 | 1,142,501 | ||
Weighted Average Remaining Life in Years | 11 months 4 days | |||
January 18, 2023 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Number of Stock Options (in shares) | 60,000 | 60,000 | ||
Weighted Exercise Price (in dollars per share) | $ / shares | $ 7.95 | |||
Vested and Exercisable Number of Stock Options (in shares) | 60,000 | 60,000 | ||
Weighted Average Remaining Life in Years | 1 year 18 days | |||
June 19, 2023 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Number of Stock Options (in shares) | 104,000 | 104,000 | ||
Weighted Exercise Price (in dollars per share) | $ / shares | $ 10.25 | |||
Vested and Exercisable Number of Stock Options (in shares) | 104,000 | 104,000 | ||
Weighted Average Remaining Life in Years | 1 year 5 months 19 days | |||
July 16, 2023 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Number of Stock Options (in shares) | 100,000 | 100,000 | ||
Weighted Exercise Price (in dollars per share) | $ / shares | $ 9.01 | |||
Vested and Exercisable Number of Stock Options (in shares) | 100,000 | 100,000 | ||
Weighted Average Remaining Life in Years | 1 year 6 months 14 days | |||
December 31, 2023 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Number of Stock Options (in shares) | 1,004,828 | 1,004,828 | ||
Weighted Exercise Price (in dollars per share) | $ / shares | $ 9.76 | |||
Vested and Exercisable Number of Stock Options (in shares) | 1,004,828 | 1,004,828 | ||
Weighted Average Remaining Life in Years | 2 years | |||
January 2, 2024 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Number of Stock Options (in shares) | 125,000 | 125,000 | ||
Weighted Exercise Price (in dollars per share) | $ / shares | $ 9.80 | |||
Vested and Exercisable Number of Stock Options (in shares) | 125,000 | 125,000 | ||
Weighted Average Remaining Life in Years | 2 years 3 days | |||
August 15, 2024 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Number of Stock Options (in shares) | 20,000 | 20,000 | ||
Weighted Exercise Price (in dollars per share) | $ / shares | $ 21.09 | |||
Vested and Exercisable Number of Stock Options (in shares) | 20,000 | 20,000 | ||
Weighted Average Remaining Life in Years | 2 years 7 months 13 days | |||
December 12, 2024 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Number of Stock Options (in shares) | 448,951 | 448,951 | ||
Weighted Exercise Price (in dollars per share) | $ / shares | $ 20.52 | |||
Vested and Exercisable Number of Stock Options (in shares) | 292,203 | 292,203 | ||
Weighted Average Remaining Life in Years | 2 years 11 months 12 days | |||
January 2, 2025 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Number of Stock Options (in shares) | 73,456 | 73,456 | ||
Weighted Exercise Price (in dollars per share) | $ / shares | $ 23.42 | |||
Vested and Exercisable Number of Stock Options (in shares) | 53,456 | 53,456 | ||
Weighted Average Remaining Life in Years | 3 years 3 days | |||
December 17, 2025 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Number of Stock Options (in shares) | 397,409 | 397,409 | ||
Weighted Exercise Price (in dollars per share) | $ / shares | $ 18.90 | |||
Vested and Exercisable Number of Stock Options (in shares) | 136,980 | 136,980 | ||
Weighted Average Remaining Life in Years | 3 years 11 months 15 days | |||
March 18, 2026 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Number of Stock Options (in shares) | 50,000 | 50,000 | ||
Weighted Exercise Price (in dollars per share) | $ / shares | $ 24.45 | |||
Vested and Exercisable Number of Stock Options (in shares) | 0 | 0 | ||
Weighted Average Remaining Life in Years | 4 years 2 months 15 days | |||
August 19, 2026 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Number of Stock Options (in shares) | 17,514 | 17,514 | ||
Weighted Exercise Price (in dollars per share) | $ / shares | $ 23.37 | |||
Vested and Exercisable Number of Stock Options (in shares) | 0 | 0 | ||
Weighted Average Remaining Life in Years | 4 years 7 months 20 days | |||
December 15, 2026 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Number of Stock Options (in shares) | 249,396 | 249,396 | ||
Weighted Exercise Price (in dollars per share) | $ / shares | $ 18.69 | |||
Vested and Exercisable Number of Stock Options (in shares) | 28,959 | 28,959 | ||
Weighted Average Remaining Life in Years | 4 years 11 months 15 days |
Share Capital - Weighted Averag
Share Capital - Weighted Average Inputs (Details) | 12 Months Ended | |
Dec. 31, 2021shares$ / shares | Dec. 31, 2020shares$ / shares | |
Share Capital , Reserves, Other Equity Interest, Share-Based Payment Arrangements And Earnings Per Share [Abstract] | ||
Expected term (years) | shares | 3 | 3 |
Forfeiture rate (as a percent) | 0.00% | 0.00% |
Volatility (as a percent) | 56.00% | 53.00% |
Dividend yield (as a percent) | 0.00% | 0.00% |
Risk-free interest rate (as a percent) | 1.10% | 0.58% |
Weighted-average fair value per option (in usd per share) | $ / shares | $ 5.57 | $ 6 |
Share Capital - Performance Sha
Share Capital - Performance Share Units (Details) - PSU | 12 Months Ended | |
Dec. 31, 2021sharesshares | Dec. 31, 2020sharesshares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Outstanding balance, beginning of year | 727,761 | 437,463 |
Issued | 310,287 | 290,298 |
Settled | (223,231) | 0 |
Cancelled | (21,774) | 0 |
Outstanding balance, end of year | 793,043 | 727,761 |
Share Capital - Performance S_2
Share Capital - Performance Share Unit Plan, Additional Information (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2021USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Transfer of PSU from equity reserves to liabilities | $ 9,389 | $ 0 | |
Share-based compensation | $ 7,848 | 9,064 | |
Performance share unit plan | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Number of common shares to be received per unit | 1 | 1 | |
Vesting period | 3 years | ||
Transfer of PSU from equity reserves to liabilities | $ 9,400 | ||
Share-based compensation | (1,200) | $ 4,124 | 3,900 |
Fair value of liability | 5,800 | 5,800 | 0 |
Performance share unit plan | Accounts payable and accrued liabilities | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Fair value of liability | 3,300 | 3,300 | 0 |
Performance share unit plan | Other non-current liabilities | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Fair value of liability | $ 2,500 | $ 2,500 | $ 0 |
Performance share unit plan | Bottom of range | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Vesting percentage | 0.00% | ||
Performance share unit plan | Top of range | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Vesting percentage | 200.00% |
Share Capital - Deferred Share
Share Capital - Deferred Share Unit Plan, Additional Information (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($)shares | Dec. 31, 2020USD ($)shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Share-based compensation | $ 7,848 | $ 9,064 |
Deferred share unit plan | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Fair value of liability | 2,000 | |
Fair value of liability | 1,300 | |
Share-based compensation | $ 734 | $ 1,300 |
Deferred share unit plan | Directors | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of shares issued | shares | 51,855 | 79,230 |
Share Capital - Restricted Shar
Share Capital - Restricted Share Unit Plan, Additional Information (Details) - Restricted share unit plan | 12 Months Ended | |
Dec. 31, 2021shares | Dec. 31, 2020shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of common shares to be received per unit | 1 | |
Redemption period | 30 days | |
Vesting period | 3 years | |
Number of shares issued | 171,106 | 0 |
Number of shares outstanding | 171,106 | 0 |
Share Capital - Warrants (Detai
Share Capital - Warrants (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2021USD ($)shares | Dec. 31, 2020USD ($)shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Proceeds from exercise of warrants | $ | $ 1.9 | $ 1.5 |
Warrants | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of warrants exercised (in shares) | shares | 1,599,996 | 1,266,666 |
Share Capital- Share-based Comp
Share Capital- Share-based Compensation (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Share-based compensation | $ 7,848 | $ 9,064 | |
Share-based compensation in contributed surplus | 7,295 | 7,811 | |
Reclassified as cash-based equity awards | (9,389) | ||
Equity Reserves, Contributed Surplus | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Share-based compensation in contributed surplus | 7,295 | 7,811 | |
Reclassified as cash-based equity awards | (9,389) | 0 | |
Stock options | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Share-based compensation | 2,925 | 3,864 | |
Performance share unit plan | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Share-based compensation | $ (1,200) | 4,124 | 3,900 |
Deferred share unit plan | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Share-based compensation | 734 | 1,300 | |
Restricted share unit plan | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Share-based compensation | $ 65 | $ 0 |
Share Capital - Net Income per
Share Capital - Net Income per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share Capital , Reserves, Other Equity Interest, Share-Based Payment Arrangements And Earnings Per Share [Abstract] | ||
Weighted average number of common shares outstanding (in shares) | 88,602,367 | 86,368,535 |
Dilutive effects of Warrants (in shares) | 0 | 2,397,518 |
Dilutive effects of Stock options (in shares) | 2,353,584 | 2,355,933 |
Dilutive effects of Share units (in shares) | 7,501 | 1,091,642 |
Weighted average number of diluted common shares outstanding (in shares) | 90,963,452 | 92,213,628 |
Net income attributable to owners of the Company | $ 201,053 | $ 51,622 |
Basic net income per share (in usd per share) | $ 2.27 | $ 0.60 |
Diluted net income per share (in usd per share) | $ 2.21 | $ 0.56 |
Stock options | ||
Earnings per share [line items] | ||
Antidilutive securities (in shares) | 390,366 | 999,523 |
Revenue (Details)
Revenue (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($)oz$ / Ounce | Dec. 31, 2020USD ($) | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | $ 489,915 | $ 324,076 |
Copper | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 423,954 | 260,888 |
Adjustments on provisionally priced sales | (3,323) | 2,233 |
Copper | Domestic | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 131,595 | 161,803 |
Copper | Export | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | $ 295,682 | 96,852 |
Copper | Export | Bottom of range | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Final sales price, period after shipment | 1 month | |
Copper | Export | Top of range | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Final sales price, period after shipment | 4 months | |
Gold | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | $ 65,961 | 63,188 |
Amortization of deferred revenue | 7,279 | 0 |
Gold | Royal Gold | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Amortization of deferred revenue | $ 7,300 | |
Quantity delivered (in ounce) | oz | 5,173 | |
Average cash consideration (in usd per ounce) | $ / Ounce | 353 | |
Gold | Export | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | $ 58,682 | $ 63,188 |
Cost of Sales (Details)
Cost of Sales (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Analysis of income and expense [abstract] | ||
Materials | $ 26,343 | $ 18,912 |
Salaries and benefits | 39,497 | 30,044 |
Depreciation and depletion | 47,002 | 39,212 |
Contracted services | 21,373 | 18,463 |
Maintenance costs | 18,162 | 14,672 |
Utilities | 10,721 | 8,728 |
Sales expense | 7,243 | 5,354 |
Other costs | 716 | 554 |
Cost of sales | $ 171,057 | $ 135,939 |
General and Administrative Ex_3
General and Administrative Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Analysis of income and expense [abstract] | ||
Accounting and legal | $ 1,625 | $ 1,079 |
Amortization and depreciation | 288 | 136 |
Office and administration | 9,143 | 7,066 |
Salaries and consulting fees | 16,962 | 12,206 |
Incentive payments | 7,126 | 6,116 |
Other | 3,702 | 1,324 |
General and administrative | $ 38,846 | $ 27,927 |
Finance Expense (Details)
Finance Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Analysis of income and expense [abstract] | ||
Interest on loans and borrowings | $ 5,177 | $ 9,921 |
(Gain) loss on interest rate swap derivatives | (469) | 2,720 |
Accretion of deferred revenue | 1,501 | 0 |
Accretion of mine closures and rehabilitation provisions | 1,077 | 902 |
Commitment fees | 1,027 | 484 |
Interest on lease liabilities | 413 | 229 |
Other finance expenses | 3,433 | 1,193 |
Finance expense | $ 12,159 | $ 15,449 |
Foreign Exchange Loss (Details)
Foreign Exchange Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Changes In Foreign Exchange Rates [Abstract] | ||
Foreign exchange loss | $ (5,370) | $ (24,190) |
Realized foreign exchange loss on derivative contracts (note 22) | (22,240) | (20,804) |
Unrealized foreign exchange gain (loss) on derivative contracts (note 22) | 3,911 | (34,548) |
Other | 1,731 | (263) |
Foreign exchange gains (losses) | $ (21,968) | $ (79,805) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes [Abstract] | ||
Net income in the year before tax | $ 236,920 | $ 61,423 |
Tax rate | 27.00% | 27.00% |
Income tax expense at statutory rate | $ 63,968 | $ 16,584 |
Difference in tax rate of foreign jurisdictions | (29,888) | (6,227) |
Non-taxable items | (7,465) | (1,792) |
Change in temporary differences not previously recognized | 6,618 | (113) |
Other | 1,055 | 473 |
Income tax expense | $ 34,288 | $ 8,925 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes [Abstract] | ||
Current income tax: Relating to current income tax charge | $ 22,428 | $ 9,675 |
Deferred income tax: Relating to origination and reversal of temporary differences | 11,860 | (750) |
Income tax expense | 34,288 | 8,925 |
Income tax expense (recovery) recognized in other comprehensive income | 576 | (3,073) |
Total income tax expense | $ 34,864 | $ 5,852 |
Income Taxes - Movement in Defe
Income Taxes - Movement in Deferred Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
At the beginning of the year | $ 14,223 | $ 13,099 |
Deferred income tax (expense) recovery | (11,860) | 750 |
Income tax expense (recovery) recognized in OCI | (576) | 3,073 |
Foreign exchange | 528 | (2,699) |
At the end of the year | $ 2,315 | $ 14,223 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred income tax assets | $ 17,964 | $ 31,937 | |
Deferred income tax liabilities | (15,649) | (17,714) | |
Deferred tax liability (asset) | 2,315 | 14,223 | $ 13,099 |
Non-capital losses | Brazil | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred income tax assets | 1,924 | 15,688 | |
Non-capital losses | Canada | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred income tax assets | 981 | 737 | |
Foreign exchange | Brazil | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred income tax assets | 8,458 | 9,412 | |
Other | Brazil | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred income tax assets | 3,409 | 2,167 | |
Deferred income tax liabilities | (618) | (544) | |
Mine closure and rehabilitation provision | Brazil | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred income tax assets | 2,903 | 3,110 | |
Financing fees and other | Canada | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred income tax assets | 289 | 823 | |
Mineral property, plant and equipment | Brazil | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred income tax liabilities | (4,986) | (6,179) | |
Loans and borrowings | Brazil | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred income tax liabilities | (8,775) | (9,431) | |
Loans and borrowings | Canada | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred income tax liabilities | $ (1,270) | $ (1,560) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Income Taxes [Abstract] | ||
Deferred tax assets not recognized | $ 21.4 | $ 13.5 |
Brazil | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Loss carryforwards | 7.7 | 46.7 |
Canada | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Loss carryforwards | $ 48 | $ 24.9 |
Income Taxes - Unrecognized Ded
Income Taxes - Unrecognized Deductible Temporary Differences (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Brazil | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deductible temporary differences with no deferred tax assets recognized | $ 34,660 | $ 37,213 |
Canada | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deductible temporary differences with no deferred tax assets recognized | 61,656 | 29,522 |
Exploration and evaluation assets | Brazil | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deductible temporary differences with no deferred tax assets recognized | 34,660 | 37,213 |
Exploration and evaluation assets | Canada | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deductible temporary differences with no deferred tax assets recognized | 0 | 0 |
Mineral property, plant and equipment | Brazil | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deductible temporary differences with no deferred tax assets recognized | 0 | 0 |
Mineral property, plant and equipment | Canada | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deductible temporary differences with no deferred tax assets recognized | 922 | 90 |
Non-capital losses | Brazil | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deductible temporary differences with no deferred tax assets recognized | 0 | 0 |
Non-capital losses | Canada | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deductible temporary differences with no deferred tax assets recognized | 44,521 | 22,194 |
Other | Brazil | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deductible temporary differences with no deferred tax assets recognized | 0 | 0 |
Other | Canada | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deductible temporary differences with no deferred tax assets recognized | $ 16,213 | $ 7,238 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party [Abstract] | ||
Salaries and short-term benefits | $ 10,282 | $ 7,400 |
Share-based payments | 5,702 | 5,100 |
Key management personnel remuneration | $ 15,984 | $ 12,500 |
Financial instruments - Fair Va
Financial instruments - Fair Value, Additional Information (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Disclosure of detailed information about financial instruments [line items] | |
Carrying value | $ 137,973 |
Face value | 61,222 |
Loans and borrowings | |
Disclosure of detailed information about financial instruments [line items] | |
Carrying value | 59,250 |
Face value | $ 61,200 |
Financial instruments - Maximum
Financial instruments - Maximum Credit Risk Exposure (Details) $ in Thousands | Dec. 31, 2021USD ($)customers | Dec. 31, 2020USD ($) |
Financial Instruments [Abstract] | ||
Number of significant customers | customers | 5 | |
Credit risk | ||
Disclosure of credit risk exposure [line items] | ||
Maximum exposure to credit risk | $ 162,128 | $ 83,456 |
Credit risk | Cash and cash equivalents | ||
Disclosure of credit risk exposure [line items] | ||
Maximum exposure to credit risk | 130,129 | 62,508 |
Credit risk | Accounts receivable | ||
Disclosure of credit risk exposure [line items] | ||
Maximum exposure to credit risk | 30,704 | 20,353 |
Credit risk | Deposits and other non-current assets | ||
Disclosure of credit risk exposure [line items] | ||
Maximum exposure to credit risk | $ 1,295 | $ 595 |
Financial instruments - Maturit
Financial instruments - Maturity of Non-Derivative Liabilities (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Disclosure of detailed information about financial instruments [line items] | |
Carrying value | $ 137,973 |
Contractual cash flows | 152,098 |
Loans and borrowings (including interest) | |
Disclosure of detailed information about financial instruments [line items] | |
Carrying value | 59,250 |
Contractual cash flows | 62,041 |
Accounts payable and accrued liabilities | |
Disclosure of detailed information about financial instruments [line items] | |
Carrying value | 66,546 |
Contractual cash flows | 66,546 |
Other non-current liabilities | |
Disclosure of detailed information about financial instruments [line items] | |
Carrying value | 5,067 |
Contractual cash flows | 16,246 |
Leases | |
Disclosure of detailed information about financial instruments [line items] | |
Carrying value | 7,110 |
Contractual cash flows | 7,265 |
Up to 12 months | |
Disclosure of detailed information about financial instruments [line items] | |
Contractual cash flows | 126,510 |
Up to 12 months | Loans and borrowings (including interest) | |
Disclosure of detailed information about financial instruments [line items] | |
Contractual cash flows | 54,789 |
Up to 12 months | Accounts payable and accrued liabilities | |
Disclosure of detailed information about financial instruments [line items] | |
Contractual cash flows | 66,546 |
Up to 12 months | Other non-current liabilities | |
Disclosure of detailed information about financial instruments [line items] | |
Contractual cash flows | 308 |
Up to 12 months | Leases | |
Disclosure of detailed information about financial instruments [line items] | |
Contractual cash flows | 4,867 |
1 - 2 years | |
Disclosure of detailed information about financial instruments [line items] | |
Contractual cash flows | 12,138 |
1 - 2 years | Loans and borrowings (including interest) | |
Disclosure of detailed information about financial instruments [line items] | |
Contractual cash flows | 3,066 |
1 - 2 years | Accounts payable and accrued liabilities | |
Disclosure of detailed information about financial instruments [line items] | |
Contractual cash flows | 0 |
1 - 2 years | Other non-current liabilities | |
Disclosure of detailed information about financial instruments [line items] | |
Contractual cash flows | 7,302 |
1 - 2 years | Leases | |
Disclosure of detailed information about financial instruments [line items] | |
Contractual cash flows | 1,770 |
3 - 5 years | |
Disclosure of detailed information about financial instruments [line items] | |
Contractual cash flows | 12,798 |
3 - 5 years | Loans and borrowings (including interest) | |
Disclosure of detailed information about financial instruments [line items] | |
Contractual cash flows | 4,186 |
3 - 5 years | Accounts payable and accrued liabilities | |
Disclosure of detailed information about financial instruments [line items] | |
Contractual cash flows | 0 |
3 - 5 years | Other non-current liabilities | |
Disclosure of detailed information about financial instruments [line items] | |
Contractual cash flows | 7,984 |
3 - 5 years | Leases | |
Disclosure of detailed information about financial instruments [line items] | |
Contractual cash flows | 628 |
More than 5 years | |
Disclosure of detailed information about financial instruments [line items] | |
Contractual cash flows | 652 |
More than 5 years | Loans and borrowings (including interest) | |
Disclosure of detailed information about financial instruments [line items] | |
Contractual cash flows | 0 |
More than 5 years | Accounts payable and accrued liabilities | |
Disclosure of detailed information about financial instruments [line items] | |
Contractual cash flows | 0 |
More than 5 years | Other non-current liabilities | |
Disclosure of detailed information about financial instruments [line items] | |
Contractual cash flows | 652 |
More than 5 years | Leases | |
Disclosure of detailed information about financial instruments [line items] | |
Contractual cash flows | $ 0 |
Financial instruments - Foreign
Financial instruments - Foreign Exchange Currency Risk (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($)alternative_energy_credit | Dec. 31, 2020USD ($) | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Gain (loss) from change in fair value | $ 3,911 | $ (34,548) |
Realized loss related to settlement | $ (22,240) | (20,804) |
Option pricing model | Discount rate | Bottom of range | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Significant unobservable input, liabilities | 0.0274 | |
Option pricing model | Discount rate | Top of range | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Significant unobservable input, liabilities | 0.0280 | |
Option pricing model | Volatility | Bottom of range | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Significant unobservable input, liabilities | 0.1569 | |
Option pricing model | Volatility | Top of range | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Significant unobservable input, liabilities | 0.1792 | |
Option pricing model | Foreign exchange rate | Bottom of range | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Significant unobservable input, liabilities | 5.59 | |
Option pricing model | Foreign exchange rate | Top of range | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Significant unobservable input, liabilities | 6.17 | |
Foreign exchange currency risk | Foreign exchange collar contracts | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liabilities | $ 28,700 | 34,500 |
Gain (loss) from change in fair value | 3,900 | (34,500) |
Realized loss related to settlement | (22,200) | (20,800) |
Currency Risk, US Dollar and Euros | Loans and borrowings | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Risk exposure | 7,800 | 7,400 |
Currency Risk, US Dollar and Euros | Intercompany loan | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Risk exposure | $ 63,800 | 83,100 |
Currency Risk, Brazilian Real to US Dollar | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
10 percent change on currency | 10.00% | |
20 percent change on currency | 20.00% | |
Impact of percent change on pre-tax net income | $ 7,000 | 8,900 |
Impact of 20% change on pre-tax net income | 13,900 | 17,700 |
Currency Risk, Brazilian Real to US Dollar | Foreign exchange collar contracts | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Notional amount | $ 179,500 | 285,700 |
Average floor rate | alternative_energy_credit | 4.24 | |
Average cap rate | alternative_energy_credit | 4.76 | |
Currency Risk, Brazilian Real to Euros | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
10 percent change on currency | 10.00% | |
20 percent change on currency | 20.00% | |
Impact of percent change on pre-tax net income | $ 200 | 200 |
Impact of 20% change on pre-tax net income | $ 400 | $ 400 |
Financial instruments - Interes
Financial instruments - Interest Rate Risk (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Fixed interest rate | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Interest rate (as a percent) | 1.68% | 2.69% |
Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Reasonably possible change in risk variable (as a percent) | 1.00% | |
Impact of change on pre-tax net income | $ 0.5 | |
Interest rate swap derivatives | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Notional amount | $ 50 | |
Interest rate swap derivatives | Fixed interest rate | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Interest rate (as a percent) | 1.68% | |
Interest rate swap derivatives | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liabilities | $ 1 | $ 2.5 |
Realized loss | 0.8 | 1.6 |
Unrealized gain (loss) | 1.3 | (1.1) |
New revolving credit facility | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Notional amount | 50 | $ 50 |
Bank loans | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Notional amount | $ 3.5 |
Financial instruments - Price R
Financial instruments - Price Risk (Details) - Commodity price risk $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Reasonably possible change in risk variable (as a percent) | 10.00% |
Impact of change on pre-tax net income | $ 0.2 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Net change in non-cash working capital items: | ||
Accounts receivable | $ (12,180) | $ (13,266) |
Inventories | (2,325) | (6,360) |
Other assets | (8,297) | 6,858 |
Accounts payable and accrued liabilities | 10,366 | (3,885) |
Amortization of deferred revenue | (7,279) | 0 |
Value added, payroll and other taxes | (2,662) | 7,121 |
Net change in non-cash working capital items | (15,098) | (9,532) |
Non-cash investing and financing activities: | ||
Change in mineral, property, plant and equipment from change in estimates for provision for rehabilitation and closure costs | 2,225 | (3,803) |
Additions to property, plant and equipment by leases | 10,205 | 2,439 |
Non-cash changes in accounts payable in relation to capital expenditures | 3,551 | (581) |
Transfer of PSU from equity reserves to liabilities | $ 9,389 | $ 0 |
Contingencies (Details)
Contingencies (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Jun. 30, 2019claims | Dec. 31, 2021USD ($)claims | Dec. 31, 2020USD ($)claims | |
Disclosure of contingent liabilities [line items] | |||
Estimated financial effect of contingent liabilities | $ 20,956 | $ 21,826 | |
Social security tax | |||
Disclosure of contingent liabilities [line items] | |||
Estimated financial effect of contingent liabilities | 3,415 | 2,879 | |
Estimated amount expected to be cancelled | 9,500 | ||
Taxes | |||
Disclosure of contingent liabilities [line items] | |||
Estimated financial effect of contingent liabilities | $ 9,531 | $ 11,633 | |
Taxes | MCSA | |||
Disclosure of contingent liabilities [line items] | |||
Number of claims | claims | 122 | 121 | |
Labour | |||
Disclosure of contingent liabilities [line items] | |||
Estimated financial effect of contingent liabilities | $ 1,219 | $ 968 | |
Mining and other | |||
Disclosure of contingent liabilities [line items] | |||
Estimated financial effect of contingent liabilities | $ 6,791 | $ 6,346 | |
Mining and other | MCSA | |||
Disclosure of contingent liabilities [line items] | |||
Number of claims | claims | 5 |
Subsequent events (Details)
Subsequent events (Details) - USD ($) $ in Thousands | Feb. 28, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of non-adjusting events after reporting period [line items] | ||||
Borrowings | $ 59,250 | $ 168,102 | $ 159,370 | |
Carrying amount | ||||
Disclosure of non-adjusting events after reporting period [line items] | ||||
Borrowings | 59,250 | 168,102 | ||
New revolving credit facility | ||||
Disclosure of non-adjusting events after reporting period [line items] | ||||
Principal amount | 50,000 | $ 50,000 | ||
Borrowing facility size | 150,000 | |||
New revolving credit facility | Carrying amount | ||||
Disclosure of non-adjusting events after reporting period [line items] | ||||
Borrowings | $ 50,000 | |||
Closing an offering | Senior notes due 2030 | ||||
Disclosure of non-adjusting events after reporting period [line items] | ||||
Principal amount | $ 400,000 | |||
Interest rate (as a percent) | 6.50% | |||
Closing an offering | Senior notes due 2030 | Deferred finance costs | ||||
Disclosure of non-adjusting events after reporting period [line items] | ||||
Borrowings | $ 8,500 | |||
Closing an offering | New revolving credit facility | ||||
Disclosure of non-adjusting events after reporting period [line items] | ||||
Borrowing facility size | 75,000 | |||
Accordion option | 100,000 | |||
Closing an offering | New revolving credit facility | Carrying amount | ||||
Disclosure of non-adjusting events after reporting period [line items] | ||||
Borrowings | $ 50,000 |