Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2018shares | |
Document And Entity Information | |
Entity Registrant Name | AVINO SILVER & GOLD MINES LTD |
Entity Central Index Key | 0000316888 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2018 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Is Entity a Well-known Seasoned Issuer? | No |
Is Entity a Voluntary Filer? | No |
Is Entity's Reporting Status Current? | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 63,337,769 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2018 |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Entity Shell Company | false |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets | |||
Cash | $ 3,252 | $ 3,420 | $ 11,780 |
Short-term investments | 1,000 | 10,000 | |
Amounts receivable | 4,091 | 4,635 | 3,050 |
Taxes recoverable | 5,343 | 6,369 | 3,529 |
Prepaid expenses and other assets | 1,030 | 2,065 | 965 |
Inventory | 9,231 | 9,102 | 5,804 |
Total current assets | 22,947 | 26,591 | 35,128 |
Exploration and evaluation assets | 46,781 | 43,338 | 30,792 |
Plant, equipment and mining properties | 38,743 | 32,158 | 28,076 |
Long-term investments | 10 | 34 | 27 |
Reclamation bonds | 107 | 714 | 108 |
Total assets | 108,588 | 102,835 | 94,131 |
Current liabilities | |||
Accounts payable and accrued liabilities | 5,885 | 3,512 | 3,726 |
Amounts due to related parties | 157 | 187 | 199 |
Taxes payable | 167 | 525 | 817 |
Current portion of term facility | 1,017 | 4,000 | 4,667 |
Current portion of equipment loans | 517 | 848 | 977 |
Current portion of finance lease obligations | 950 | 1,116 | 1,435 |
Deferred revenue | 573 | ||
Current portion of reclamation provision | 296 | ||
Other liabilities | 279 | ||
Total current liabilities | 9,841 | 10,188 | 11,821 |
Term facility | 5,884 | 4,667 | 4,667 |
Equipment loans | 411 | 398 | 1,191 |
Finance lease obligations | 869 | 1,233 | 1,377 |
Warrant liability | 2,009 | 1,161 | 1,630 |
Reclamation provision | 10,799 | 11,638 | 6,963 |
Deferred income tax liabilities | 3,903 | 4,548 | 4,688 |
Total liabilities | 33,420 | 33,833 | 32,337 |
EQUITY | |||
Share capital | 88,045 | 81,468 | 80,785 |
Equity reserves | 9,849 | 10,581 | 9,100 |
Treasury shares (14,180 shares, at cost) | (97) | (97) | (97) |
Accumulated other comprehensive loss | (6,124) | (4,073) | (6,456) |
Accumulated deficit | (16,505) | (18,877) | (21,538) |
Total equity | 75,168 | 69,002 | 61,794 |
Total liabilities and equity | $ 108,588 | $ 102,835 | $ 94,131 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Position (Parenthetical) - shares | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
EQUITY | |||
Treasury shares | 14,180 | 14,180 | 14,180 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Consolidated Statements Of Operations And Comprehensive Income | |||
Revenue from mining operations | $ 34,116 | $ 33,359 | $ 34,692 |
Cost of sales | 27,850 | 22,106 | 22,961 |
Mine operating income | 6,266 | 11,253 | 11,731 |
Operating expenses | |||
General and administrative expenses | 3,565 | 3,313 | 3,789 |
Share-based payments | 630 | 2,018 | 1,218 |
Income (loss) before other items | 2,071 | 5,922 | 6,724 |
Other items | |||
Interest and other income | 221 | 246 | 52 |
Unrealized gain (loss) on long-term investments | (5) | 5 | (2) |
Fair value adjustment on warrant liability | 1,304 | 563 | 8 |
Unrealized foreign exchange gain (loss) | (802) | (935) | 156 |
Finance cost | (444) | (157) | (142) |
Accretion of reclamation provision | (378) | (248) | (215) |
Interest expense | (109) | (103) | (126) |
Gain on sale of asset | 175 | ||
Net income before income taxes | 2,033 | 5,293 | 6,455 |
Income taxes | |||
Current income tax expense | (1,052) | (2,911) | (3,434) |
Deferred income tax recovery (expense) | 645 | 140 | (1,005) |
Income tax expense | (407) | (2,771) | (4,439) |
Net income | 1,626 | 2,522 | 2,016 |
Other comprehensive income (loss) | |||
Currency translation differences | (2,051) | 2,383 | (95) |
Total comprehensive income (loss) | $ (425) | $ 4,905 | $ 1,921 |
Earnings per share | |||
Basic | $ 0.03 | $ 0.05 | $ 0.05 |
Diluted | $ 0.03 | $ 0.05 | $ 0.05 |
Weighted average number of common shares outstanding | |||
Basic | 56,851,626 | 52,523,454 | 42,695,999 |
Diluted | 60,000,637 | 53,320,009 | 43,791,451 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Common Stock | Equity Reserves | Treasury Shares | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Total |
Begning balance, Shares at Dec. 31, 2015 | 37,298,009 | |||||
Begning balance, Amount at Dec. 31, 2015 | $ 58,241 | $ 9,330 | $ (97) | $ (6,361) | $ (23,760) | $ 37,353 |
Common shares issued for cash, Brokered public offerings, Shares | 14,043,992 | |||||
Common shares issued for cash, Brokered public offerings, Amount | $ 21,663 | 21,663 | ||||
Common shares issued for cash, Less share issuance costs, Shares | ||||||
Common shares issued for cash, Less share issuance costs, Amount | $ (1,459) | (1,459) | ||||
Common shares issued for cash, exercise of stock options, Shares | 1,079,000 | |||||
Common shares issued for cash, exercise of stock options, Amount | $ 949 | 949 | ||||
Carrying value of stock options exercised | 1,369 | (1,369) | ||||
Stock options cancelled or expired | (206) | 206 | ||||
Share-based payments (net of costs of $4,539) | 1,345 | 1,345 | ||||
Currency translation differences | (95) | (95) | ||||
Shares issued for exploration and evaluation assets, Shares | 10,000 | |||||
Shares issued for exploration and evaluation assets, Amount | $ 22 | 22 | ||||
Net income for the year | 2,016 | 2,016 | ||||
Ending balance, Shares at Dec. 31, 2016 | 52,431,001 | |||||
Ending balance, Amount at Dec. 31, 2016 | $ 80,785 | 9,100 | (97) | (6,456) | (21,538) | 61,794 |
Common shares issued for cash, Brokered public offerings, Shares | 10,000 | |||||
Common shares issued for cash, Brokered public offerings, Amount | $ 17 | 17 | ||||
Common shares issued for cash, Less share issuance costs, Shares | ||||||
Common shares issued for cash, Less share issuance costs, Amount | $ (1) | (1) | ||||
Common shares issued for cash, exercise of stock options, Shares | 20,000 | |||||
Common shares issued for cash, exercise of stock options, Amount | $ 25 | 25 | ||||
Carrying value of stock options exercised | 20 | (20) | ||||
Stock options cancelled or expired | (139) | 139 | ||||
Share-based payments (net of costs of $4,539) | 2,263 | 2,263 | ||||
Currency translation differences | 2,383 | 2,383 | ||||
Carrying value of RSUs exercised, Shares | 257,152 | |||||
Carrying value of RSUs exercised, Amount | $ 623 | (623) | ||||
Total share issuance costs | (1) | (1) | ||||
Net income for the year | 2,522 | 2,522 | ||||
Ending balance, Shares at Dec. 31, 2017 | 52,718,153 | |||||
Ending balance, Amount at Dec. 31, 2017 | $ 81,468 | 10,581 | (97) | (4,073) | (18,877) | 69,002 |
Common shares issued for cash, Brokered public offerings, Shares | 10,257,458 | |||||
Common shares issued for cash, Brokered public offerings, Amount | $ 6,683 | 6,683 | ||||
Common shares issued for cash, Less share issuance costs, Shares | ||||||
Common shares issued for cash, Less share issuance costs, Amount | $ (899) | (899) | ||||
Common shares issued for cash, exercise of stock options, Shares | 87,500 | |||||
Common shares issued for cash, exercise of stock options, Amount | $ 112 | 112 | ||||
Carrying value of stock options exercised | 84 | (84) | ||||
Stock options cancelled or expired | (746) | 746 | ||||
Share-based payments (net of costs of $4,539) | 700 | 700 | ||||
Currency translation differences | (2,051) | (2,051) | ||||
Carrying value of RSUs exercised, Shares | 274,658 | |||||
Carrying value of RSUs exercised, Amount | $ 602 | (602) | ||||
Total share issuance costs | (5) | (5) | ||||
Net income for the year | 1,626 | 1,626 | ||||
Ending balance, Shares at Dec. 31, 2018 | 63,337,769 | |||||
Ending balance, Amount at Dec. 31, 2018 | $ 88,045 | $ 9,849 | $ (97) | $ (6,124) | $ (16,505) | $ 75,168 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash generated by (used in): Operating Activities | |||
Net income | $ 1,626 | $ 2,522 | $ 2,016 |
Adjustments for non-cash items: | |||
Deferred income tax expense (recovery) | (645) | (140) | 1,005 |
Depreciation and depletion | 3,256 | 2,703 | 1,913 |
Accretion of reclamation provision | 378 | 248 | 215 |
Unrealized loss (gain) on investments | 5 | (5) | 2 |
Foreign exchange (gain) loss | 45 | 127 | (442) |
Fair value adjustment on warrant liability | (1,304) | (563) | (8) |
Fair value adjustment on modification of term facility | 234 | ||
Share-based payments | 630 | 2,018 | 1,218 |
Cash flows from (used in) operations before changes in working capital | 4,225 | 6,910 | 5,921 |
Net change in non-cash working capital items | 4,999 | (9,077) | (1,098) |
Cash flows from (used in) operations | 9,224 | (2,167) | 4,823 |
Cash generated by (used in): Financing Activities | |||
Shares and units issued for cash, net of issuance costs | 8,466 | 40 | 22,791 |
Finance lease payments | (1,166) | (1,581) | (1,531) |
Equipment loan payments | (1,445) | (847) | (587) |
Term facility payments | (2,000) | (667) | (667) |
Cash flows from (used in) financing activities | 3,855 | (3,055) | 20,006 |
Cash generated by (used in): Investing Activities | |||
Exploration and evaluation expenditures | (5,361) | (5,527) | (4,810) |
Additions to plant, equipment and mining properties | (9,416) | (6,608) | (3,683) |
Redemption (purchase) of short-term investments | 1,000 | 9,000 | (10,000) |
Redemption of reclamation bonds | 548 | ||
Cash flows from (used in) investing activities | (13,229) | (3,135) | (18,493) |
Change in cash | (150) | (8,357) | 6,336 |
Effect of exchange rate changes on cash | (18) | (3) | 43 |
Cash, Beginning | 3,420 | 11,780 | 5,401 |
Cash, Ending | $ 3,252 | $ 3,420 | $ 11,780 |
1. NATURE OF OPERATIONS
1. NATURE OF OPERATIONS | 12 Months Ended |
Dec. 31, 2018 | |
Nature Of Operations | |
Note 1 - NATURE OF OPERATIONS | Avino Silver & Gold Mines Ltd. (the “Company” or “Avino”) was incorporated in 1968 under the laws of the Province of British Columbia, Canada. The Company is engaged in the production and sale of silver, gold, and copper and the acquisition, exploration, and advancement of mineral properties. The Company’s head office and principal place of business is Suite 900, 570 Granville Street, Vancouver, BC, Canada. The Company is a reporting issuer in Canada and the United States, and trades on the Toronto Stock Exchange (“TSX”), the NYSE American, and the Frankfurt and Berlin Stock Exchanges. The Company owns interests in mineral properties located in Durango, Mexico, as well as in British Columbia and the Yukon, Canada. On October 1, 2012, the Company commenced production of silver and gold at levels intended by management at its San Gonzalo Mine, and on July 1, 2015 (see Note 3), the Company commenced production of copper, silver, and gold at levels intended by management at its Avino Mine; both mines are located on the historic Avino property in the state of Durango, Mexico. |
2. BASIS OF PRESENTATION
2. BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2018 | |
Basis Of Presentation | |
Note 2 - BASIS OF PRESENTATION | 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”). Basis of Presentation These consolidated financial statements are expressed in US dollars and have been prepared on a historical cost basis except for financial instruments that have been measured at fair value. In addition, these condensed consolidated financial statements have been prepared using the accrual basis of accounting on a going concern basis. The accounting policies set out below have been applied consistently to all periods presented in these consolidated financial statements as if the policies have always been in effect. Foreign Currency Translation Functional & presentation currencies The functional currency of the Company and its Canadian subsidiary is the Canadian dollar. The functional currency of the Company’s Mexican subsidiaries is the US dollar, which is determined to be the currency of the primary economic environment in which the subsidiaries operate. Effective January 1, 2017, the Company changed its presentation currency from the Canadian dollar to the US dollar. The Company believes that the change in presentation currency will provide shareholders with a better reflection of the Company’s business activities and enhance the comparability of the Company’s financial information to its peers. Foreign currency transactions Transactions in currencies other than the functional currency are recorded at the rates of exchange prevailing on the dates of the transactions. At each financial position reporting date, monetary assets and liabilities that are denominated in foreign currencies are translated at the rates prevailing at the date of the statement of financial position. Non-monetary items that are measured in terms of historical cost in a foreign currency are not re-translated. Foreign operations Subsidiaries that have functional currencies other than the US dollar translate their statement of operations items at the average rate during the year. Assets and liabilities are translated at exchange rates prevailing at the end of each reporting period. Exchange rate variations resulting from the retranslation at the closing rate of the net investment in these subsidiaries, together with differences between their statement of operations items translated at actual and average rates, are recognized in accumulated other comprehensive income (loss). On disposition or partial disposition of a foreign operation, the cumulative amount of related exchange difference is recognized in the statement of operations. Significant Accounting Judgments and Estimates The Company’s management makes judgments in its process of applying the Company’s accounting policies to the preparation of its consolidated financial statements. In addition, the preparation of financial data requires that the Company’s management make assumptions and estimates of the impacts on the carrying amounts of the Company’s assets and liabilities at the end of the reporting period from uncertain future events and on the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates as the estimation process is inherently uncertain. Estimates are reviewed on an ongoing basis based on historical experience and other factors that are considered to be relevant under the circumstances. Revisions to estimates and the resulting impacts on the carrying amounts of the Company’s assets and liabilities are accounted for prospectively. a) i. Economic recoverability and probability of future economic benefits from exploration and evaluation costs Management has determined that mine and camp, exploratory drilling, and other exploration and evaluation-related costs that were capitalized have future economic benefits and are economically recoverable. Management uses several criteria in its assessments of economic recoverability and probability of future economic benefits including geologic and metallurgic information, scoping studies, accessible facilities, existing permits, and mine plans. ii. Commencement of production at levels intended by management Prior to reaching production levels intended by management, costs incurred are capitalized as part of the costs of related exploration and evaluation assets, and proceeds from concentrate sales are offset against costs capitalized. Depletion of capitalized costs for mining properties and depreciation of plant and equipment begin when operating levels intended by management have been reached. Management considers several factors in determining when a mining property has reached the intended production levels, including production capacity, recoveries, and number of uninterrupted production days. The results of operations of the Company during the periods presented in these consolidated financial statements have been impacted by management’s determination that the San Gonzalo Mine and Avino Mine had achieved production levels intended by management as of October 1, 2012 and July 1, 2015, respectively, and that none of the Company’s exploration and evaluation assets had achieved production levels intended by management as at December 31, 2018. The basis for achievement of production levels intended by management as indicated by technical feasibility and commercial viability is generally established with proven reserves based on a NI 43-101-compliant technical report or a comparable resource statement and feasibility study, combined with pre-production operating statistics and other factors. In cases where the Company does not have a 43-101-compliant reserve report, on which to base a production decision, the technical feasibility and commercial viability of extracting a mineral resource are considered in light of additional factors including but not limited to: Acquisition and installation of all critical capital components to achieve desired mining and processing results has been completed. Capital components have been acquired directly and are also available on an as-needed basis from the underground mining contractor; The necessary labour force, including mining contractors, has been secured to mine and process at planned levels of output; The mill has consistently processed at levels above design capacity and budgeted production levels with consistent recoveries and grades; and, Establishing sales agreements with respect to the sale of concentrates. When technical feasibility and commercial viability are considered demonstrable according to the above criteria and other factors, the Company performs an impairment assessment and records an impairment loss, if any, before reclassifying exploration and evaluation costs to plant, equipment, and mining properties. iii. Functional currency The functional currency for the Company and its subsidiaries is the currency of the primary economic environment, in which the entity operates. The Company has determined the functional currency of the Company and its Canadian subsidiary to be the Canadian dollar. The Company has determined the functional currency of its Mexican subsidiaries to be the US dollar. Determination of functional currency may involve certain judgments to determine the primary economic environment. The Company reconsiders the functional currency of its entities, if there is a change in events and conditions, which determine the primary economic environment. b) i. Stockpile and concentrate inventory valuations Concentrate and stockpile mineralized material are valued at the lower of average cost or net realizable value. The assumptions used in the valuation of concentrate and stockpile mineralized material include estimates of copper, silver, and gold contained in the stockpiles and finished goods assumptions for the amount of copper, silver, and gold that is expected to be recovered from the concentrate. If these estimates or assumptions prove to be inaccurate, the Company could be required to write down the recorded value of its concentrate and stockpile mineralized material inventory, which would result in an increase in the Company’s expenses and a reduction in its working capital. ii. Estimated reclamation provisions The Company’s provision for reclamation represents management’s best estimate of the present value of the future cash outflows required to settle estimated reclamation and closure costs at the Avino, San Gonzalo, and Bralorne properties. The provision reflects estimates of future costs, inflation, 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 could result in a change to the provision recognized by the Company. Changes to reclamation and closure cost obligations are recorded with a corresponding change to the carrying amounts of the related exploration and evaluation assets or mining properties. Adjustments to the carrying amounts of related mining properties result in a change to future depletion expense. iii. Valuation of share-based payments and warrants The Company uses the Black-Scholes Option Pricing Model for valuation of share-based payments and warrants. Option pricing models require the input of subjective assumptions including expected price volatility, interest rate, and forfeiture rate. Changes in the input assumptions can materially affect fair value estimates and the Company’s net income or net loss and its equity reserves. Warrant liabilities are accounting for as derivate liabilities (see Note 16). iv. Impairment of plant, equipment and mining properties, and exploration and evaluation assets Management considers both external and internal sources of information in assessing whether there are any indications that the Company’s plant, equipment, and mining properties, and exploration and evaluation assets are impaired. External sources of information management considers include changes in the market, economic and legal environments, in which the Company operates, that are not within its control and that affect the recoverable amount of its plant, equipment, and mining properties. Internal sources of information that management considers include the manner in which mining properties and plant and equipment are being used, or are expected to be used, and indications of economic performance of the assets. In determining the recoverable amounts of the Company’s plant, equipment and mining properties, management makes estimates of the undiscounted future pre-tax cash flows expected to be derived from the Company’s mining properties, and the appropriate discount rate. Reductions in metal price forecasts, increases in estimated future costs of production, increases in estimated future non expansionary capital expenditures, reductions in the amount of recoverable resources and exploration potential, and adverse current economic conditions are examples of factors that could result in a write down of the carrying amounts of the Company’s plant, equipment and mining properties, and exploration and evaluation assets. v. Depreciation rate for plant and equipment and depletion rate for mining properties Depreciation and depletion expenses are allocated based on estimates for useful lives of assets. Should the asset life, depletion rates, or depreciation rates differ from the initial estimate, the revised life or rate would be reflected prospectively through profit and loss. vi. Recognition and measurement of deferred tax assets and liabilities Actual amounts of income tax expense are not final until tax returns are filed and accepted by the relevant authorities. This occurs subsequent to the issuance of the consolidated financial statements and the final determination of actual amounts may not be completed for a number of years. Therefore, tax assets and liabilities and net income in subsequent periods will be affected by the amount that estimates differ from the final tax return. Estimates of future taxable income are based on forecasted cash flows from operations and the application of existing tax laws in each jurisdiction. Forecasted cash flows from operations are based on projections internally developed and reviewed by management. Weight is attached to tax planning opportunities that are within the Company’s control, and are feasible and implementable without significant obstacles. The likelihood that tax positions taken will be sustained upon examination by applicable tax authorities is assessed based on individual facts and circumstances of the relevant tax position evaluated in light of all available evidence. Where applicable tax laws and regulations are either unclear or subject to ongoing varying interpretations, it is reasonably possible that changes in these estimates can occur that could materially affect the amounts of deferred tax assets and liabilities. Basis of Consolidation The consolidated financial statements include the accounts of the Company and its Canadian and Mexican subsidiaries as follows: Subsidiary Ownership Interest Jurisdiction Nature of Operations Oniva Silver and Gold Mines S.A. de C.V. 100% Mexico Mexican administration Nueva Vizcaya Mining, S.A. de C.V. 100% Mexico Mexican administration Promotora Avino, S.A. de C.V. (“Promotora”) 79.09% Mexico Holding company Compañía Minera Mexicana de Avino, S.A. de C.V. (“Avino Mexico”) 98.45% direct 1.22% indirect (Promotora) 99.67% effective Mexico Mining and exploration Bralorne Gold Mines Ltd. 100% Canada Mining and exploration Intercompany balances and transactions, including unrealized income and expenses arising from intercompany transactions, are eliminated in preparing the consolidated financial statements. Cash Cash in the consolidated statement of financial position comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, which are readily convertible into a known amount of cash. |
3. SIGNIFICANT ACCOUNTING POLIC
3. SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2018 | |
Significant Accounting Policies | |
NOTE 3 - SIGNIFICANT ACCOUNTING POLICIES | Change in accounting policies - Exploration and evaluation assets Upon review of the Company’s experience at the Avino and San Gonzalo mines, on a retrospective basis, the Company has changed its accounting policy under IFRS 6 and IAS 16 in accounting for its exploration and evaluation assets and development costs. The change in accounting policy resulted in a reassessment of the commencement of production date from April 1, 2016 to July 1, 2015, at the Avino Mine. The voluntary change in accounting policy is intended to provide shareholders with a better reflection of its business activities to enhance the comparability of its financial statements to its peers and to make the consolidated financial statements more relevant to the economic decision-making needs of users. Accordingly, the Company has adopted the following exploration and evaluation assets and development costs accounting policy during the period ended December 31, 2018: Exploration and evaluation assets and development costs (i) Exploration and evaluation expenditures The Company capitalizes all costs relating to the acquisition, exploration and evaluation of mineral claims. Expenditures incurred before the Company has obtained the legal rights to explore a specific area are expensed. The Company’s capitalized exploration and evaluation costs are classified as intangible assets. Such costs include, but are not limited to, certain camp costs, geophysical studies, exploratory drilling, geological and sampling expenditures, and depreciation of plant and equipment during the exploration stage. Costs not directly attributable to exploration and evaluation activities, including general administrative overhead costs, are expensed in the period in which they occur. Proceeds from the sale of mineral products or farm outs during the exploration and evaluation stage are deducted from the related capitalized costs. The carrying values of capitalized amounts are reviewed annually, or when indicators of impairment are present. In the case of undeveloped properties, there may be only inferred resources to allow management to form a basis for the impairment review. The review is based on the Company’s intentions for the development of such properties. If a mineral property does not prove to be viable, all unrecoverable costs associated with the property are charged to the consolidated statement of comprehensive income (loss) at the time the determination is made. When the technical feasibility and commercial viability of extracting mineral resources have been demonstrated, exploration and evaluation costs are assessed for impairment, reclassified to mining properties and become subject to depletion. Management considers the technical feasibility and commercial viability of extracting a mineral resource to be demonstrable upon the completion of a positive feasibility study and the establishment of mineral reserves. For certain mineral projects, management may determine the completion of a feasibility study to be cost prohibitive, unnecessary or to present undue risk to the structural integrity of the ore body. Under such circumstances, management considers technical feasibility to be demonstrable when the Company has obtained the necessary environmental and mining permits, land surface and mineral access rights, and the mineral project can be physically constructed and operated in a technically sound manner to produce a saleable mineral product. In assessing whether commercial viability is demonstrable, management considers if its internal economic assessment indicates that the mineral project can be mined to generate a reasonable return on investment for the risk undertaken, and markets or long-term contracts for the product exist. (ii) Development expenditures Mine Development Costs are capitalized until the mineral property is capable of operating in the manner intended by management. The Company evaluates the following factors in determining whether a mining property is capable of operating in the manner intended by management: · The completion and assessment of a reasonable commissioning period of the mill and mining facilities; · Consistent operating results are achieved during the test period; · Existence of clear indicators that operating levels intended by management will be sustainable for the foreseeable future; · Plant / mill has reached a pre-determined percentage of design capacity; · Adequate funding is available and can be allocated to the operating activities; and, · Long term sales arrangements have been secured. The carrying values of capitalized development costs are reviewed annually, or when indicators are present, for impairment. Effect of Change in Accounting Policy As a result of applying the change in accounting policy, the Company has determined that the production phase would have commenced effective July 1, 2015. Accordingly, the Company determined that the accumulated impact on its consolidated statement of financial position would be an increase in plant, equipment and mining properties, and the impact of its consolidated statement of operations and comprehensive income (loss) would be an increase in revenue from mining operations and costs of sales as such amounts are not offset during production, resulting in a decreased in accumulated deficit. The retrospective application of this change in accounting policy on the Company’s consolidated statement of financial position as at January 1, 2017 and December 31, 2017, is as follows: As Previously Reported January 1, 2017 Adjustment As Adjusted January 1, 2017 ASSETS Total current assets $ 35,128 $ - $ 35,128 Plant, equipment and mining properties 27,739 337 28,076 Other long-term assets 30,927 - 30,927 Total assets $ 93,794 $ 337 $ 94,131 LIABILITIES Total liabilities $ 32,337 $ - $ 32,337 EQUITY Accumulated deficit (21,875 ) 337 (21,538 ) Other equity 83,332 - 83,332 Total equity 61,457 337 61,794 Total liabilities and equity $ 93,794 $ 337 $ 94,131 As Previously Reported December 31, 2017 Adjustment As Adjusted December 31, 2017 ASSETS Total current assets $ 26,591 $ - $ 26,591 Plant, equipment and mining properties 31,952 206 32,158 Other long-term assets 44,086 - 44,086 Total assets $ 102,629 $ 206 $ 102,835 LIABILITIES Total liabilities $ 33,833 $ - $ 33,833 EQUITY Accumulated deficit (19,083 ) 206 (18,877 ) Other equity 87,879 - 87,879 Total equity 68,796 206 69,002 Total liabilities and equity $ 102,629 $ 206 $ 102,835 The retrospective application of this change in accounting policy on the Company’s consolidated statements of operations and comprehensive income for the years ended December 31, 2017 and 2016, are as follows: As Previously Reported 2016 Adjustment As Adjusted 2016 Revenue from mining operations $ 30,105 $ 4,587 $ 34,692 Cost of sales 19,161 3,800 22,961 Mine operating income 10,944 787 11,731 Operating expenses and other items 5,276 - 5,276 Net income before income taxes 5,668 787 6,455 Income taxes 4,164 275 4,439 Net income 1,504 512 2,016 Earnings per share Basic $ 0.04 $ 0.01 $ 0.05 Diluted $ 0.03 $ 0.02 $ 0.05 As Previously Reported 2017 Adjustment As Adjusted 2017 Revenue from mining operations $ 33,359 $ - $ 33,359 Cost of sales 21,975 131 22,106 Mine operating income 11,384 (131 ) 11,253 Operating expenses and other items 5,960 - 5,960 Net income before income taxes 5,424 (131 ) 5,293 Income taxes 2,771 - 2,771 Net income 2,653 (131 ) 2,522 Earnings per share Basic $ 0.05 $ 0.00 $ 0.05 Diluted $ 0.05 $ 0.00 $ 0.05 The retrospective application of this change in accounting policy on the Company’s consolidated statements of cash flows for the years ended December 31, 2017 and 2016, are as follows: As Previously Reported 2016 Adjustment As Adjusted 2016 Cash generated by (used in) Operating Activities Net income $ 1,504 $ 512 $ 2,016 Adjustments for non-cash items: Depreciation and depletion 1,341 572 1,913 Other changes in operating activities 1,992 - 1,992 Total before changes in non-cash working capital items 4,837 1,084 5,921 Net change in non-cash working capital items (1,098 ) - (1,098 ) Total cash generated by operating activities 3,739 1,084 4,823 Financing Activities Total cash generated by financing activities 20,006 - 20,006 Investing Activities Exploration and evaluation expenditures (8,313 ) 3,503 (4,810 ) Recovery of exploration costs from concentrate proceeds 4,587 (4,587 ) - Other changes in investing activities (13,683 ) - (13,683 ) Total cash used in investing activities (17,409 ) (1,084 ) (18,493 ) Change in cash and effect of exchange rates 6,336 - 6,336 Effect of exchange rates 43 - 43 Cash, Beginning 5,401 - 5,401 Cash, Ending $ 11,780 $ - $ 11,780 As Previously Reported 2017 Adjustment As Adjusted 2017 Cash generated by (used in) Operating Activities Net income $ 2,653 $ (131 ) $ 2,522 Adjustments for non-cash items: Depreciation and depletion 2,572 131 2,703 Other changes in operating activities 1,685 - 1,685 Total before changes in non-cash working capital items 6,910 - 6,910 Net change in non-cash working capital items (9,077 ) - (9,077 ) Total cash used in operating activities (2,167 ) - (2,167 ) Financing Activities Total cash used in financing activities (3,055 ) - (3,055 ) Investing Activities Total cash used in investing activities (3,135 ) - (3,135 ) Change in cash (8,357 ) - (8,357 ) Effect of exchange rates (3 ) - (3 ) Cash, Beginning 11,780 - 11,780 Cash, Ending $ 3,420 $ - $ 3,420 Plant, equipment and mining properties Upon demonstrating the technical feasibility and commercial viability of extracting mineral resources, all expenditures incurred to that date for the mine are reclassified to mining properties. Expenditures capitalized to mining properties include all costs related to obtaining or expanding access to resources including extensions of the haulage ramp and installation of underground infrastructure, and the estimated reclamation provision. Expenditures incurred with respect to a mining property are capitalized when it is probable that additional future economic benefits will flow to the Company. Otherwise, such expenditures are classified as a cost of sales. Plant and equipment are recorded at historical cost less accumulated depreciation and any accumulated impairment losses. Historical costs include expenditures that are directly attributable to bringing the asset to a location and condition necessary to operate in a manner intended by management. Such costs are accumulated as construction in progress until the asset is available for use, at which point the asset is classified as plant, equipment and mining properties and depreciation commences. After the date that management’s intended production levels have been achieved, mining properties are depleted using the straight-line method over the estimated remaining life of the mine. The Company estimates the remaining life of its producing mineral properties on an annual basis using a combination of quantitative and qualitative factors including historical results, mineral resource estimates, and management’s intent to operate the property. The Company does not have sufficient reserve information to form a basis for the application of the units-of-production method for depreciation and depletion. As at December 31, 2018 and 2017, and January 1, 2017, the Company estimated a remaining mine life for San Gonzalo of 0.8, 0.8, and 1.8 years, respectively. As at December 31, 2018 and 2017, and January 1, 2017, the Company estimated a remaining mine life for the Avino Mine of 9.5, 10.3, and 11.3 years, respectively. Accumulated mill, machinery, plant facilities, and certain equipment are depreciated using the straight-line method over their estimated useful lives, not to exceed the life of the mine for any assets that are inseparable from the mine. When parts of an item of plant and equipment have different useful lives, they are accounted for as separate items (or components) of plant and equipment. Plant and equipment are depreciated using the following annual rates and methods: Office equipment, furniture, and fixtures 20% declining balance Computer equipment 30% declining balance Mine machinery and transportation equipment 20% declining balance Mill machinery and processing equipment 5 - 20 years straight line Buildings 5 - 20 years straight line Impairment At each financial position reporting date, the carrying amounts of the Company’s assets are reviewed to determine whether there is any indication that those assets are impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment, if any. Where the asset does not generate cash flows that are independent from other assets, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. An asset’s recoverable amount is the higher of fair value less costs to sell and value in use. Fair value is determined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. 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 asset is reduced to its recoverable amount and the impairment loss is recognized in profit or loss for the period. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, provided the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognized immediately in profit or loss. Leases Leases in which the Company assumes substantially all risks and rewards of ownership are classified as finance leases. Assets held under finance leases are recognized at the lower of the fair value and present value of the minimum lease payments at inception of the lease, less accumulated depreciation and impairment losses. The corresponding liability is recognized as a finance lease obligation. Lease payments are apportioned between finance charges and reduction of the lease obligation to achieve a constant rate of interest on the remaining liability. Finance charges are recorded as a finance expense within profit and loss, unless they are attributable to qualifying assets, in which case they are capitalized. Operating lease payments are recognized on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed, in which case that systematic basis is used. Operating lease payments are recorded within profit and loss unless they are attributable to qualifying assets, in which case they are capitalized. Inventory Material extracted from the Company’s mine is classified as either process material or waste. Process material represents mineralized material that, at the time of extraction, the Company expects to process into a saleable form and sell at a profit, while waste is considered uneconomic to process and its extraction cost is included in direct mining costs. Raw materials are comprised of process material stockpiles. Process material is accumulated in stockpiles that are subsequently processed into bulk copper, silver, and gold concentrate in a saleable form. The Company has bulk copper, silver, and gold concentrate inventory in saleable form that has not yet been sold. Mine operating supplies represent commodity consumables and other raw materials used in the production process, as well as spare parts and other maintenance supplies that are not classified as capital items. Inventories are valued at the lower of cost and net realizable value (“NRV”). Cost is determined on a weighted average basis and includes all costs incurred, based on normal production capacity, in bringing each product to its present location and condition. Cost of inventories comprises direct labor, materials and contractor expenses, depletion and depreciation on mining properties, plant and equipment, and an allocation of mine site costs. As mineralized material is removed for processing, costs are removed based on the average cost per tonne in the stockpile. Stockpiled process material tonnages are verified by periodic surveys. NRV of mineralized material is determined with reference to relevant market prices less applicable variable selling expenses and costs to bring the inventory into its saleable form. NRV of materials and supplies is generally calculated by reference to salvage or scrap values when it is determined that the supplies are obsolete. NRV provisions are recorded within cost of sales in the consolidated statement of operations, and are reversed to reflect subsequent recoveries where the inventory is still on hand. Revenue from Contracts with Customers Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue and costs to sell can be reliably measured. Revenue is measured at the fair value of the consideration received, excluding discounts, rebates, and other sales tax or duty. Performance Obligations Based on the criteria outlined in IFRS 15, the Company applied significant judgment in determining that the primary performance obligation relating to its sales contracts is the delivery of concentrates. Shipping and insurance services arranged by the Company for concentrate sales that occur after the transfer of control are also considered performance obligations. Transfer of Control Based on the criteria outlined in IFRS 15, the Company applied significant judgment in determining when the transfer of control occurs. Management based its assessment on a number of indicators of control, which include but are not limited to, whether the Company has the present right of payment and whether the physical possession of the goods, significant risks and rewards, and legal title have been transferred to the customer. Provisional Pricing Based on the criteria outlined in IFRS 15, the Company applied significant judgment in determining variable consideration. The Company identified two provisional pricing components in concentrate sales, represents variable consideration in the form of a) adjustments between original and final assay results relating to the quantity and quality of concentrate shipments, as well as b) pricing adjustments between provisional and final invoicing based on market prices for base and precious metals. Based on the Company’s historical accuracy in the assay process, as evidenced by the negligible historical adjustments relating to assay differences, the Company concluded the variability in consideration caused by the assaying results is negligible. The Company does not expect a significant amount of reversal related to assaying differences. The Company records revenues based on provisional invoices based on quoted market prices of the London Bullion Market Association and the London Metal Exchange during the quotation period outlined in the concentrate sales agreement. The Company applied judgment to determine the amount of variable consideration to be recognized during the period for which the likelihood of significant reversal is low. Financial Instruments Measurement – initial recognition All financial assets and financial liabilities are initially recorded on the Company’s consolidated statement of financial position when the Company becomes a party to the contractual provisions of the instrument. All financial asset and liabilities are initially recorded at fair value, net of attributable transaction costs, except for those classified as fair value through profit or loss (“FVTPL”). Subsequent measurement of financial assets and financial liabilities depends on the classifications of such assets and liabilities. Classification – financial assets Amortized cost: Financial assets that are held within a business model whose objective is to hold financial assets in order to collect contractual cash flows, and that the contractual terms of the financial assets give rise on specified date to cash flows that are solely payments of principal and interest on the principal amount outstanding, are measured subsequent to initial recognition at amortized cost. The amortized cost of a financial asset is the amount at which the financial asset is measured at initial recognition minus the principal repayments, plus the cumulative amortization using the effective interest method of any difference between that initial amount and the maturity amount, adjusted for any loss allowance. Interest income is recognized using the effect interest method, and is recognized in Interest and other income, on the consolidated statements of operations and comprehensive income (loss) The Company financial assets at amortized costs include its cash, amounts receivable not related to sales of concentrate, investments (short-term), and reclamation bonds. Fair value through other comprehensive income (“FVTOCI”) Financial assets that are held within a business model whose objective is to hold financial assets in order to both collect contractual cash flows and selling financial assets, and that the contractual terms of the financial assets give rise on specified date to cash flows that are solely payments of principal and interest on the principal amount outstanding Upon initial recognition of equity securities, the Company may make an irrevocable election (on an instrument-by-instrument basis) to designate its equity securities that would otherwise be measured at FVTPL to present subsequent changes in fair value in other comprehensive income. Designation at FVTOCI is not permitted if the equity investment is held for trading or if it is contingent consideration recognized by an acquirer in a business combination. Investments in equity instruments at FVTOCI are initially measured 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 OCI. The cumulative gain or loss is not reclassified to profit or loss on disposal of the instrument; instead, it is transferred to retained earnings. The Company currently has no financial assets designated as FVTOCI. Fair value through profit or loss (“FVTPL”) By default, all other financial assets are measured subsequently at FVTPL, which includes amounts receivable from concentrate sales. Classification – financial liabilities Financial liabilities that are not contingent consideration of an acquirer in a business combination, held for trading or designated as at FVTPL, are measured at amortized cost using the effective interest method. Financial liabilities at amortized cost include accounts payable, amounts due to related parties, term facility, equipment loans, and finance lease obligations. Financial liabilities classified FVTPL include financial liabilities held for trading and financial liabilities designated upon initial recognition as FVTPL. Fair value changes on financial liabilities classified as FVTPL are recognized in the consolidated statements of operations. The Company has classified share purchase warrants with an exercise price in US dollars (see Note 16) as financial liabilities at FVTPL. As these warrants are exercised, the fair value of the recorded warrant liability on date of exercise is included in share capital along with the proceeds from the exercise. If these warrants expire, the related decrease in warrant liability is recognized in the consolidated statements of operations. The Company has no hedging arrangements and does not apply hedge accounting. Impairment The Company recognizes a loss allowance for expected credit losses on its financial assets when necessary. The amount of expected credit losses is updated at each reporting period to reflect changes in credit risk since initial recognition of the respective financial instruments. Share capital a) Common shares Common shares are classified as equity. Transaction costs directly attributable to the issuance of common shares and equity warrants are recognized as a deduction from equity, net of any tax effects. Transaction costs directly attributable to derivative warrants are charged to operations as a finance cost. b) Repurchase of share capital (treasury shares) When share capital recognized as equity is repurchased, the amount of the consideration paid, which includes directly attributable costs, net of any tax effects, is recognized as a deduction from equity. Repurchased shares are classified as treasury shares and are presented as a deduction from total equity. When treasury shares are sold or reissued subsequently, the amount received is recognized as an increase in equity, and the resulting surplus or deficit on the transaction is transferred to accumulated deficit. Share-based payment transactions The Company’s share option plan and restricted share unit (“RSU”) plan allows directors, officers, employees, and consultants to acquire common shares of the Company. The fair value of options granted is measured at fair value at the grant date based on the market value of the Company’s common shares on that date. The fair value of equity-settled RSUs is measured at the grant date based on the market value of the Company’s common shares on that date, and each tranche is recognized using the graded vesting method over the period during which the RSUs vest. At each financial position reporting date, the amount recognized as an expense is adjusted to reflect the actual number of RSUs that are expected to vest. All options and RSUs are recognized in the consolidated statements of operations and comprehensive income (loss) as an expense or in the consolidated statements of financial position as exploration and evaluation assets over the vesting period with a corresponding increase in equity reserves in the consolidated statements of financial position. Reclamation and other provisions Provisions are recognized where a legal or constructive obligation has been incurred as a result of past events, it is probable that an outflow of resources embodying economic benefit will be required to settle the obligation, and a reliable estimate of the amount of the obligation can be made. If material, provisions are measured at the present value of the expenditures expected to be required to settle the obligation. The increase in any provision due to the passage of time is recognized as accretion expense. The Company records the present value of estimated costs of legal and constructive obligations required to restore properties in the period in which the obligation is incurred. The nature of these restoration activities includes dismantling and removing structures, rehabilitating mines and restoration, reclamation, and re-vegetation of affected areas. The fair value of the liability for a rehabilitation provision is recorded when it is incurred. When the liability is initially recognized, the present value of the estimated cost is capitalized by increasing the carrying amount of the related mining property or exploration and evaluation asset. Over time, the discounted liability is increased for the change in present value based on the discount rates that reflect current market assessments and the risks specific to the liability, which is accreted over time through periodic charges to income or loss. A revision in estimates or new disturbance will result in an adjustment to the provision with an offsetting adjustment to the mineral property or the exploration and evaluation asset. Additional disturbances, changes in costs, or changes in assumptions are recognized as adjustments to the corresponding assets and reclamation liabilities when they occur. Earnings per share The Company presents basic and diluted earnings per share data for its common shares, calculated by dividing the earnings attributable to common shareholders of the Company by the weighted average number of common shares outstanding during the year. Diluted earnings per share is determined by adjusting the earnings attributable to common shareholders and the weighted average number of common shares outstanding for the effects of all potentially dilutive common shares. Income taxes Income taxes in the years presented are comprised of current and deferred tax. Income tax is recognized in profit or loss except to the extent that it relates to items recognized directly in equity, in which case it is recognized as equity. Deferred tax is recognized using the statement of financial position asset and liability method, which provides for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The amount of deferred tax recognized is based on the expected manner of realization or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at the consolidated statement of financial position date. A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which the asset can be utilized. Deferred tax assets and liabilities are not recognized if the temporary differences arise from the initial recognition of goodwill or an asset or liability in a transaction other than a business combination that affects neither accounting profit nor taxable profit. |
4. RECENT ACCOUNTING PRONOUNCEM
4. RECENT ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Recent Accounting Pronouncements | |
Note 4 - RECENT ACCOUNTING PRONOUNCEMENTS | Application of new and revised accounting standards: IFRS 9 - Financial Instruments In July 2014, the IASB issued the final version of IFRS 9 – Financial Instruments (“IFRS 9”) to replace IAS 39 – Financial Instruments: Recognition and Measurement in its entirety. IFRS 9 provides a revised model for recognition and measurement of financial instruments and a single, forward-looking ‘expected-loss’ impairment model, as well as a substantially reformed approach to hedge accounting. The standard is effective for annual periods beginning on or after January 1, 2018. The standard did not impact the Company’s classification and measurement of financial assets and liabilities, and there was no significant impact on the carrying amounts of the Company’s financial instruments at the transition date. IFRS 15 - Revenue from Contracts with Customers On January 1, 2018, the Company adopted the requirements of IFRS 15. IFRS 15 covers principles that an entity shall apply to report useful information to users of the financial statements about the nature, amount, timing, and uncertainty of revenue and cash flows arising from a contract with a customer. The Company elected to apply IFRS 15 using a full retrospective approach. The company has completed its assessment and there was no significant impact on the recognition or measurement of the Company’s revenue from customers. However, this standard resulted in additional disclosures and presentation categories in the Company’s consolidated financial statements. Performance Obligations Based on the criteria outlined in IFRS 15, the Company applied significant judgment in determining that the primary performance obligation relating to its sales contracts is the delivery of concentrates. Shipping and insurance services arranged by the Company for concentrate sales that occur after the transfer of control are also considered performance obligations. Transfer of Control Based on the criteria outlined in IFRS 15, the Company applied significant judgment in determining when the transfer of control occurs. Management based its assessment on a number of indicators of control, which include but are not limited to, whether the Company has the present right of payment and whether the physical possession of the goods, significant risks and rewards, and legal title have been transferred to the customer. Provisional Pricing Based on the criteria outlined in IFRS 15, the Company applied significant judgment in determining variable consideration. The Company identified two provisional pricing components in concentrate sales, represents variable consideration in the form of a) adjustments between original and final assay results relating to the quantity and quality of concentrate shipments, as well as b) pricing adjustments between provisional and final invoicing based on market prices for base and precious metals. Based on the Company’s historical accuracy in the assay process, as evidenced by the negligible historical adjustments relating to assay differences, the Company concluded the variability in consideration caused by the assaying results is negligible. The Company does not expect a significant amount of reversal related to assaying differences. The Company records revenues based on provisional invoices based on quoted market prices of the London Bullion Market Association and the London Metal Exchange during the quotation period outlined in the concentrate sales agreement. The Company applied judgment to determine the amount of variable consideration to be recognized during the period for which the likelihood of significant reversal is low. Additional Disclosures Additional disclosures have been presented in Note’s 13 and 20 of the consolidated financial statements as a result of adopting IFRS 9 and 15, respectively. Changes in accounting standards not yet effective: The Company has not early adopted any amendment, standard or interpretation that has been issued by the IASB but is not yet effective. The following accounting standards were issued and are effective as of December 31, 2018: IFRS 16 – Leases In January 2016, the IASB issued IFRS 16 – Leases (“IFRS 16”) which replaces IAS 17 – Leases and its associated interpretative guidance, and will be effective for accounting periods beginning on or after January 1, 2019. Early adoption is permitted, provided the Company has adopted IFRS 15. This standard sets out a new model for lease accounting. A lessee can choose to apply IFRS 16 using either a full retrospective approach or a modified retrospective approach. The Company plans to apply IFRS 16 at the date it becomes effective and has not yet selected a transition approach. The Company has identified existing agreements that may contain right-of-use assets. At this time, the Company does not believe that the new standard will give rise to a material change, and is currently finalized the expected impact on the consolidated financial statements. The majority of the Company’s leases were already classified its right of use assets on its consolidated statement of financial position, and at this time, does not believe that it has material right of use assets that are not classified as such. IFRS 3 – Definition of a Business In October 2018, the IASB issued amendments to IFRS 3 – Definition of a Business which: · Clarify that to be considered a business, an acquired set of activities and assets must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create outputs; · Narrow the definitions of a business and of outputs by focusing on goods and services provided to customers and by removing the reference to an ability to reduce costs; · Add guidance and illustrative examples to help entities assess whether a substantive process has been acquired; · Remove the assessment of whether market participants are capable of replacing any missing inputs or processes and continuing to produce outputs; and · Add an option concentration test that permits a simplified assessment of whether an acquired set of activities and assets is not a business. The amendments are effective for business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after January 1, 2020, and to asset acquisitions that occurred on or after the beginning of that period. Earlier application is permitted. IFRIC 23 - Uncertainty over Income Tax Treatments IFRIC 23 (the “Interpretation”) sets out how to determine the accounting tax position when there is uncertainty over income tax treatments. The Interpretation requires an entity to determine whether uncertain tax positions are assessed separately or as a group; and assess whether it is probable that a tax authority will accept an uncertain tax treatment used, or proposed to be used, by an entity in its income tax filings. If yes, the entity should determine its accounting tax position consistently with the tax treatment used or planned to be used in its income tax filings. If no, the entity should reflect the effect of uncertainty in determining its accounting tax position. The Interpretation is effective for annual periods beginning on or after January 1, 2019. Entities can apply the Interpretation with either full retrospective application or modified retrospective application without restatement of comparatives retrospectively or prospectively. The Company does not expect the application of the Interpretation will have a significant impact on the Company’s consolidated financial statements. Annual Improvements 2015-2017 Cycle In December 2017, the IASB issued the Annual Improvements 2015-2017 cycle, containing amendments to IFRS 3 - Business Combinations (“IFRS 3”), IFRS 11 - Joint Arrangements, IAS 12 - Income Taxes, and IAS 23 - Borrowing Costs. These amendments are effective for annual periods beginning on or after January 1, 2019 and are not expected to have a significant impact on the Company’s consolidated financial statements |
5. SHORT-TERM INVESTMENTS
5. SHORT-TERM INVESTMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Short-term Investments | |
Note 5 - SHORT-TERM INVESTMENTS | At December 31, 2018, the Company’s short-term investments totalled $Nil (December 31, 2017 - $1,000 January 1, 2017 - $10,000). |
6. TAXES RECOVERABLE
6. TAXES RECOVERABLE | 12 Months Ended |
Dec. 31, 2018 | |
Taxes Recoverable | |
Note 6 - TAXES RECOVERABLE | The Company’s taxes recoverable consist of the Mexican I.V.A. (“VAT”) and income taxes recoverable and Canadian sales taxes (“GST”) recoverable. December 31, 2018 December 31, 2017 January 1, 2017 VAT recoverable $ 3,144 $ 5,779 $ 3,376 GST recoverable 82 105 153 Income taxes recoverable 2,117 485 - $ 5,343 $ 6,369 $ 3,529 |
7. INVENTORY
7. INVENTORY | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Abstract | |
Note 7 - INVENTORY | December 31, 2018 December 31, 2017 January 1, 2017 Process material stockpiles $ 4,486 $ 3,566 $ 2,605 Concentrate inventory 3,095 3,437 1,896 Materials and supplies 1,650 2,099 1,303 $ 9,231 $ 9,102 $ 5,804 The amount of inventory recognized as an expense for the year ended December 31, 2018 totalled $27,850 (2017 – $22,106, 2016 – $22,961), and includes production costs and depreciation and depletion directly attributable to the inventory production process. |
8. EXPLORATION AND EVALUATION A
8. EXPLORATION AND EVALUATION ASSETS | 12 Months Ended |
Dec. 31, 2018 | |
Exploration And Evaluation Assets | |
Note 8 - EXPLORATION AND EVALUATION ASSETS | The Company has accumulated the following acquisition, exploration and evaluation costs which are not subject to depletion: Durango, Mexico British Columbia & Yukon, Canada Total Balance, January 1, 2017 $ 7,979 $ 22,813 $ 30,792 Costs incurred during 2017: Mine and camp costs - 4,301 4,301 Provision for reclamation - 3,762 3,762 Effect of movements in exchange rates 555 1,604 2,159 Drilling and exploration 418 348 766 Depreciation of plant and equipment - 716 716 Interest and financing costs - 377 377 Geological and related services - 264 264 Water treatment and tailing storage facility costs - 224 224 Assessments and taxes 82 97 179 Mineral exploration tax credit - (202 ) (202 ) Balance, December 31, 2017 $ 9,034 $ 34,304 $ 43,338 Costs incurred during 2018: Mine and camp costs - 3,143 3,143 Drilling and exploration 346 1,142 1,488 Depreciation of plant and equipment - 540 540 Interest and other costs - 414 414 Geological and related services - 205 205 Water treatment and tailing storage facility costs - 53 53 Assessments and taxes 86 29 115 Assays - 13 13 Effect of movements in exchange rates 226 (2,754 ) (2,528 ) Balance, December 31, 2018 $ 9,692 $ 37,089 $ 46,781 Additional information on the Company’s exploration and evaluation properties by region is as follows: (a) Durango, Mexico The Company’s subsidiary Avino Mexico owns 42 mineral claims and leases four mineral claims in the state of Durango, Mexico. The Company’s mineral claims in Mexico are divided into the following four groups: (i) Avino mine area property The Avino mine area property is situated around the towns of Panuco de Coronado and San Jose de Avino and surrounding the historic Avino mine site. There are four exploration concessions covering 154.4 hectares, 24 exploitation concessions covering 1,284.7 hectares, and one leased exploitation concession covering 98.83 hectares. Within the Avino mine site area is the Company’s San Gonzalo Mine, which achieved production at levels intended by management as of October 1, 2012, and on this date accumulated exploration and evaluation costs were transferred to mining properties. (ii) Gomez Palacio property The Gomez Palacio property is located near the town of Gomez Palacio, and consists of nine exploration concessions covering 2,549 hectares. (iii) Santiago Papasquiaro property The Santiago Papasquiaro property is located near the village of Santiago Papasquiaro, and consists of four exploration concessions covering 2,552.6 hectares and one exploitation concession covering 602.9 hectares. (iv) Unification La Platosa properties The Unification La Platosa properties, consisting of three leased concessions in addition to the leased concession described in note (i) above, are situated within the Avino mine area property near the towns of Panuco de Coronado and San Jose de Avino and surrounding the Avino Mine. In February 2012, the Company’s wholly-owned Mexican subsidiary entered into a new agreement with Minerales de Avino, S.A. de C.V. (“Minerales”) whereby Minerales has indirectly granted to the Company the exclusive right to explore and mine the La Platosa property known as the “ET zone”. The ET zone includes the Avino Mine, where production at levels intended by management was achieved on July 1, 2015. Under the agreement, the Company has obtained the exclusive right to explore and mine the property for an initial period of 15 years, with the option to extend the agreement for another 5 years. In consideration of the granting of these rights, the Company issued 135,189 common shares with a fair value of C$0.25 million during the year ended December 31, 2012. The Company has agreed to pay to Minerales a royalty equal to 3.5% of net smelter returns (“NSR”). In addition, after the start of production, if the minimum monthly processing rate of the mine facilities is less than 15,000 tonnes, then the Company must pay to Minerales a minimum royalty equal to the applicable NSR royalty based on the processing at a monthly rate of 15,000 tonnes. Minerales has also granted to the Company the exclusive right to purchase a 100% interest in the property at any time during the term of the agreement (or any renewal thereof), upon payment of $8 million within 15 days of the Company’s notice of election to acquire the property. The purchase would be subject to a separate purchase agreement for the legal transfer of the property. (b) British Columbia, Canada (i) Bralorne Mine The Company owns a 100% undivided interest in certain mineral properties located in the Lillooet Mining Division. There is an underlying agreement on 12 crown grants in which the Company is required to pay 1.6385% of net smelter proceeds of production from the claims, and pay fifty cents Canadian (C$0.50) per ton of ore produced from these claims if the ore grade exceeds 0.75 ounces per ton gold. The Company also owns land and mineral claims for the Bralorne Mine project in connection with ongoing plans for exploration and potential expansion, which include nine mineral claims covering approximately 2,114 hectares in the Lillooet Mining Division of British Columbia (the “BRX Property”).The BRX Property carries a 1% net smelter returns royalty to a maximum of C$0.25 million, and a 2.5% net smelter returns royalty. (ii) Minto and Olympic-Kelvin properties The Company’s mineral claims in British Columbia encompass two additional properties, Minto and Olympic-Kelvin, each of which consists of 100% owned Crown-granted mineral claims located in the Lillooet Mining Division. (c) Yukon, Canada The Company has a 100% interest in 14 quartz leases located in the Mayo Mining Division of Yukon, Canada, which collectively comprise the Eagle property. During the year ended December 31, 2017, an option agreement was signed between Avino and Alexco Resource Corp. (“Alexco”), granting Alexco the right to acquire a 65% interest in all 14 quartz mining leases. To exercise the option, Alexco must pay Avino a total of C$70,000 in instalments over 4 years, issue Avino a total of 70,000 Alexco common shares in instalments over 4 years, incur C$0.55 million in exploration work by the second anniversary of the option agreement date, and a further C$2.2 million in exploration work on the Eagle Property by the fourth anniversary of the option agreement date. In the event that Alexco earns its 65% interest in the Eagle Property, Alexco and Avino will form a joint venture for the future exploration and development of the Eagle Property, and may contribute towards expenditures in proportion to their interests (65% Alexco / 35% Avino). If either company elects to not contribute its share of costs, then its interest will be diluted. If either company’s joint venture interest is diluted to less than 10%, its interest will convert to a 5.0% net smelter returns royalty, subject to the other’s right to buy-down the royalty to 2.0% for C$2.5 million. The Eagle Property was previously inactive and held by Avino as a non-essential asset to its current operations. |
9. NON-CONTROLLING INTEREST
9. NON-CONTROLLING INTEREST | 12 Months Ended |
Dec. 31, 2018 | |
Non-controlling Interest | |
Note 9 - NON-CONTROLLING INTEREST | At December 31, 2018, the Company had an effective 99.67% (2017 - 99.67%, 2016 – 99.67%) interest in its subsidiary Avino Mexico and the remaining 0.33% (2017 - 0.33%, 2016 – 0.33%) interest represents a non-controlling interest. The accumulated deficit and current year income attributable to the non-controlling interest are insignificant and accordingly have not been recognized in the consolidated financial statements. |
10. PLANT, EQUIPMENT AND MINING
10. PLANT, EQUIPMENT AND MINING PROPERTIES | 12 Months Ended |
Dec. 31, 2018 | |
Plant Equipment And Mining Properties | |
Note 10 - PLANT, EQUIPMENT AND MINING PROPERTIES | Mining properties Office equipment, furniture, and fixtures Computer equipment Mine machinery and transportation equipment Mill machinery and processing equipment Buildings Total $ $ $ $ $ $ $ COST Balance at January 1, 2017 10,990 83 253 14,927 7,638 2,645 36,536 Additions 1,370 49 27 1,271 2,137 2,949 7,803 Effect of movements in exchange rates 122 1 3 179 91 31 427 Balance at December 31, 2017 12,482 133 283 16,377 9,866 5,625 44,766 Additions 588 17 77 990 7,901 1,089 10,662 Transfers - - - - (45 ) 45 - Disposals - - - - (33 ) - (33 ) Effect of movements in exchange rates (108 ) (1 ) (2 ) (110 ) (86 ) (49 ) (356 ) Balance at December 31, 2018 12,962 149 358 17,257 17,603 6,710 55,039 ACCUMULATED DEPLETION AND DEPRECIATION Balance at January 1, 2017 2,748 36 116 4,206 846 508 8,460 Additions 1,817 12 27 1,827 283 87 4,053 Effect of movements in exchange rates 27 - 1 51 10 6 95 Balance at December 31, 2017 4,592 48 144 6,084 1,139 601 12,608 Additions 1,549 17 32 799 1,287 112 3,796 Effect of movements in exchange rates (39 ) - (1 ) (53 ) (10 ) (5 ) (108 ) Balance at December 31, 2018 6,102 65 175 6,830 2,416 708 16,296 NET BOOK VALUE At December 31, 2018 6,860 84 183 10,427 15,187 6,002 38,743 At December 31, 2017 7,890 85 139 10,293 8,727 5,024 32,158 At January 1, 2017 8,242 47 137 10,721 6,792 2,137 28,076 Included in Buildings above are assets under construction of $3,655 as at December 31, 2018 (December 31, 2017 - $3,283) on which no depreciation was charged in the periods then ended. Once the assets are put into service, they are transferred to the appropriate class of plant, equipment and mining properties. |
11. RECLAMATION BONDS
11. RECLAMATION BONDS | 12 Months Ended |
Dec. 31, 2018 | |
Reclamation Bonds | |
Note 11 - RECLAMATION BONDS | Under the Ministry of Energy, Mines and Petroleum Resources (“MEM”), the Company is required to hold reclamation bonds that cover the estimated future cost to reclaim the ground disturbed. At December 31, 2018, the Company has secured $107 (December 31, 2017 - $714 January 1, 2017 - $108) to cover estimated future costs related to the future ground disturbance at the Company’s Canadian operations. |
12. RELATED PARTY TRANSACTIONS
12. RELATED PARTY TRANSACTIONS AND BALANCES | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions And Balances | |
Note 12 - RELATED PARTY TRANSACTIONS AND BALANCES | All related party transactions are recorded at the exchange amount which is the amount agreed to by the Company and the related party. (a) Key management personnel The Company has identified its directors and certain senior officers as its key management personnel. The compensation costs for key management personnel for the year ended December 31, 2018, 2017 and 2016, were as follows: 2018 2017 2016 Salaries, benefits, and consulting fees $ 956 $ 860 $ 1,277 Share-based payments 531 1,718 891 $ 1,487 $ 2,578 $ 2,168 (b) Amounts due to/from related parties In the normal course of operations the Company transacts with companies related to Avino’s directors or officers. All amounts payable and receivable are non-interest bearing, unsecured and due on demand. Advances to Oniva International Services Corp. (“Oniva”) of $212 (December 31, 2017 - $232, January 1, 2017 - $111) for expenditures to be incurred on behalf of the Company are included in prepaid expenses and other assets on the consolidated statements of financial position as at December 31, 2018. The following table summarizes the amounts due to related parties: December 31, 2018 December 31, 2017 January 1, 2017 Oniva International Services Corp. $ 107 $ 139 $ 127 Directors 47 42 45 Jasman Yee & Associates, Inc. 3 6 4 Intermark Capital Corp. - - 20 Wear Wolfin Designs Ltd. - - 3 $ 157 $ 187 $ 199 (c) Other related party transactions The Company has a cost sharing agreement with Oniva for office and administration services. Pursuant to the cost sharing agreement, the Company will reimburse Oniva for the Company’s percentage of overhead and corporate expenses and for out-of-pocket expenses incurred on behalf of the Company. David Wolfin, President & CEO, and a directr of the Company, is the sole owner of Oniva. The cost sharing agreement may be terminated with one-month notice by either party without penalty. The transactions with Oniva during the three and years ended December 31, 2018, 2017 and 2016, are summarized below: 2018 2017 2016 Salaries and benefits $ 594 $ 450 $ 297 Office and miscellaneous 560 567 507 Exploration and evaluation assets 353 352 248 $ 1,507 $ 1,369 $ 1,052 For services provided to the Company as President and Chief Executive Officer, the Company pays Intermark Capital Corporation (“ICC”), a company controlled by David Wolfin, the Company’s president and CEO and also a director, for consulting services. For the year ended December 31, 2018, 2017 and 2016, the Company paid $232, $231 and $504, respectively, to ICC. The Company pays Jasman Yee & Associates, Inc. (“JYAI”) for operational, managerial, metallurgical, engineering and consulting services related to the Company’s activities. JYAI’s managing director is a director of the Company. For the year ended December 31, 2018, 2017 and 2016, the Company paid $66, $80 and $140, respectively, to JYAI. The Company pays Wear Wolfin Designs Ltd. (“WWD”), a company whose director is the brother-in-law of David Wolfin, for financial consulting services related to ongoing consultation with stakeholders and license holders. For the year ended December 31, 2018, 2017 and 2016, the Company paid $12, $23 and $23, respectively, to WWD. |
13. TERM FACILITY
13. TERM FACILITY | 12 Months Ended |
Dec. 31, 2018 | |
Term Facility | |
Note 13 - TERM FACILITY | In July 2015, the Company entered into a $10 million term facility with Samsung C&T U.K. Limited (“Samsung”). Interest is charged on the facility at a rate of US dollar LIBOR (3 month) plus 4.75%, and the facility was to be repaid in 15 consecutive equal monthly instalments starting in June 2016. Pursuant to the agreement, in August 2015, Avino commenced selling concentrates produced during ramp advancement and ongoing evaluation and extraction at the Avino Mine on an exclusive basis to Samsung. Samsung pays for the concentrates at the prevailing metal prices for their silver, copper, and gold content at or about the time of delivery, less interest, treatment, refining, shipping, and insurance charges. During the year ended December 31, 2017, the Company and Samsung agreed to amend the Company’s existing term facility by extending the repayment period. Repayments of the remaining balance will be made in 13 equal monthly instalments commencing in July 2018 and ending July 2019. The Company will sell the Avino Mine concentrates on an exclusive basis to Samsung until December 31, 2021. During the year ended December 31, 2018, the Company and Samsung entered into a new amending agreement to amend the existing term facility by extending the repayment period. Under the new amendment, Samsung granted the Company a 12 month deferral period from October 2018, through and including September 2019, during which there will be no principal repayments. The Company will repay the remaining balance in 23 equal monthly instalments of $278 commencing in October 2019 and ending August 2021. Interest on the amended facility is now charged at a rate of US dollar LIBOR (3 month) plus 6.75% during the 12 month deferral period, reverting to US dollar LIBOR (3 month) plus 4.75% for the remainder of the repayment period ending August 2021. Other material terms of the facility remain unchanged. The Company is committed to selling Avino Mine concentrate on an exclusive basis to Samsung until December 31, 2024. The facility is secured by the concentrates produced under the agreement and by the common shares of the Company’s wholly-owned subsidiary Bralorne Gold Mines Ltd. The facility with Samsung relates to the sale of concentrates produced from the Avino Mine only and does not include concentrates produced from the San Gonzalo Mine. The continuity of the term facility with Samsung is as follows: December 31, December 31, January 1, 2018 2017 2017 Balance at beginning of the period $ 8,667 $ 9,334 $ 10,000 Repayments (2,000 ) (667 ) (666 ) Fair value adjustment for modification 234 - - Balance at end of the period 6,901 8,667 9,334 Less: current portion (1,017 ) (4,000 ) (4,666 ) Non-current portion $ 5,884 $ 4,667 $ 4,667 |
14. EQUIPMENT LOANS
14. EQUIPMENT LOANS | 12 Months Ended |
Dec. 31, 2018 | |
Equipment Loans | |
Note 14 - EQUIPMENT LOANS | The Company has entered into loans for mining equipment maturing in between 2018 and 2023 with fixed interest rates of 4.75% to 6.29% per annum. The Company’s obligations under the loans are secured by the mining equipment. As at December 31, 2018, plant, equipment, and mining properties includes a net carrying amount of $2,232 (December 31, 2017 - $2,065, January 1, 2017 - $2,508) for this mining equipment. The contractual maturities and interest charges in respect of the Company’s obligations under the equipment loans are as follows: December 31, December 31, January 1, 2018 2017 2017 Not later than one year $ 550 $ 886 $ 1,060 Later than one year and not later than five years 428 410 1,238 Less: Future interest charges (50 ) (50 ) (130 ) Present value of loan payments 928 1,246 2,168 Less: current portion (517 ) (848 ) (977 ) Non-current portion $ 411 $ 398 $ 1,191 The equipment loan credit facilities are a component of the master credit facilities described in Note 15. |
15. FINANCE LEASE OBLIGATIONS
15. FINANCE LEASE OBLIGATIONS | 12 Months Ended |
Dec. 31, 2018 | |
Finance Lease Obligations | |
Note 15 - FINANCE LEASE OBLIGATIONS | The Company has entered into mining equipment leases expiring between 2018 and 2021, with interest rates ranging from Nil% to 14.49% per annum. The Company has the option to purchase the mining equipment at the end of the lease term for a nominal amount. The Company’s obligations under finance leases are secured by the lessor’s title to the leased assets. As at December 31, 2018, plant, equipment and mining properties includes a net carrying amount of $3,461 (December 31, 2017 - $3,951, January 1, 2017 - $4,801) for this leased mining equipment. The contractual maturities and interest charges in respect of the Company’s finance lease obligations are as follows: December 31, December 31, January 1, 2018 2017 2017 Not later than one year $ 943 $ 1,204 $ 1,527 Later than one year and not later than five years 947 1,295 1,482 Less: Future interest charges (71 ) (150 ) (197 ) Present value of lease payments 1,819 2,349 2,812 Less: current portion (950 ) (1,116 ) (1,435 ) Non-current portion $ 869 $ 1,233 $ 1,377 The Company has two master credit facilities with equipment suppliers for a total of $10,375. The facilities are used to acquire equipment necessary for maintaining operations at the San Gonzalo Mine and the Avino Mine, and for continuing exploration activity at the Bralorne Mine. As of December 31, 2018, the Company had $8,224 in available credit remaining under these facilities. |
16. WARRANT LIABILITY
16. WARRANT LIABILITY | 12 Months Ended |
Dec. 31, 2018 | |
Warrant Liability | |
Note 16 - WARRANT LIABILITY | The Company’s warrant liability arises as a result of the issuance of warrants exercisable in U.S. dollars. As the denomination is different from the Canadian dollar functional currency of the entity issuing the underlying shares, the Company recognizes a derivative liability for these warrants and re-measures the liability at the end of each reporting period using the Black-Scholes model. Changes in respect of the Company’s warrant liability are as follows: December 31, 2018 December 31, 2017 January 1, 2017 Balance at beginning of the period $ 1,161 $ 1,630 $ - Warrants issued during the period 2,296 - 1,638 Fair value adjustment (1,304 ) (563 ) (8 ) Effect of movement in exchange rates (144 ) 94 - Balance at end of the period $ 2,009 $ 1,161 $ 1,630 Less: current portion - - - Non-current portion $ 2,009 $ 1,161 $ 1,630 Continuity of warrants during the periods is as follows: Underlying Shares Weighted Average Exercise Price Warrants outstanding and exercisable, January 1 and December 31, 2017 3,602,215 $ 1.99 Issued 7,175,846 $ 0.80 Warrants outstanding and exercisable, December 31, 2018 10,778,061 $ 1.20 Derivative Warrants,Outstanding and Exercisable Expiry Date Exercise Price per Share December 31, 2018 December 31, 2017 January 1, 2017 March 14, 2019 $ 1.00 40,000 40,000 40,000 November 28, 2019 $ 2.00 3,562,215 3,562,215 3,562,215 September 25, 2023 $ 0.80 7,175,846 - - 10,778,061 3,602,215 3,602,215 As at December 31, 2018, the weighted average remaining contractual life of warrants outstanding was 3.46 years (December 31, 2017 – 1.90 years, January 1, 2017 – 2.29 years). Valuation of the warrant liability requires the use of highly subjective estimates and assumptions including the expected stock price volatility. The expected volatility used in valuing warrants is based on volatility observed in historical periods. Changes in the underlying assumptions can materially affect the fair value estimates. The fair value of the warrant liability was calculated using the Black-Scholes model with the following weighted average assumptions and resulting fair values: December 31, 2018 December 31, 2017 January 1, 2017 Weighted average assumptions: Risk-free interest rate 1.88 % 1.66 % 0.67 % Expected dividend yield 0 % 0 % 0 % Expected warrant life (years) 3.46 1.90 2.29 Expected stock price volatility 61.47 % 65.69 % 72.66 % Weighted average fair value $ 0.19 $ 0.32 $ 0.35 |
17. DEFERRED REVENUE
17. DEFERRED REVENUE | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Revenue [Abstract] | |
Note 17 - DEFERRED REVENUE | During the year ended December 31, 2018, the Company entered into a sales agreement with MK Metal Trading Mexico S.A. de C.V., a subsidiary of Ocean Partners, to sell San Gonzalo concentrate for a 12 month period. As per the agreement, the Company received an unsecured upfront payment of $2 million, which is to be repaid in equal monthly installments over the 12 month period ending March 2019. Interest is charged on the outstanding balance at a rate of US dollar LIBOR (3 month) plus 4.75%. As of December 31, 2018, the outstanding balance (including IVA) was $573 (December 31, 2017 and January 1, 2017 - $Nil). |
18. RECLAMATION PROVISION
18. RECLAMATION PROVISION | 12 Months Ended |
Dec. 31, 2018 | |
Reclamation Provision | |
Note 18 - RECLAMATION PROVISION | Management’s estimate of the reclamation provision at December 31, 2018, is $10,503 (December 31, 2017 – $11,638, January 1, 2017 – $6,963), and the undiscounted value of the obligation is $16,356 (December 31, 2017 – $17,529, January 1, 2017 – $7,634). The present value of the obligation in Mexico of $1,309 (December 31, 2017 – $1,584, January 1, 2017 – $1,233) was calculated using a risk-free interest rate of 8.62% (December 31, 2017 – 7.68%, January 1, 2017 – 7.00%) and an inflation rate of 3.80% (December 31, 2017 – 6.77%, January 1, , 2017 – 4.25%). Reclamation activities are estimated to begin in 2019 for the San Gonzalo Mine and in 2028 for the Avino Mine. The present value of the obligation for Bralorne of $9,490 (December 31, 2017 – $10,054, January 1, 2017 – $5,730) was calculated using a weighted average risk-free interest rate of 3.41% (December 31, 2017 – 3.46%, January 1, 2017 – 4.39%) and a weighted average inflation rate of 1.88% (December 31, 2017 – 1.67%, January 1, 2017 – 1.79%). Reclamation activities are estimated to begin in 2024. A reconciliation of the changes in the reclamation provision during the years ended December 31, 2018, and 2017, is as follows: December 31, 2018 December 31, 2017 Balance at beginning of the period $ 11,638 $ 6,963 Changes in estimates (437 ) 3,900 Unwinding of discount 378 248 Effect of movements in exchange rates (780 ) 527 Balance at end of the period $ 10,799 $ 11,638 Less: current portion (296 ) - Non-current portion $ 10,503 $ 11,638 |
19. SHARE CAPITAL AND SHARE-BAS
19. SHARE CAPITAL AND SHARE-BASED PAYMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Share Capital And Share-based Payments | |
Note 19 - SHARE CAPITAL AND SHARE-BASED PAYMENTS | (a) Authorized: . (b) Issued: (i) During the year ended December 31, 2018, the Company closed a bought-deal financing, issuing 7,105,658 units at the price of $0.65 per unit for gross proceeds of $4,619. Each unit consisted of one common share and one share purchase warrant, with each share purchase warrant exercisable to purchase one additional common share at an exercise price of $0.80 until expiry on September 25, 2023. The financing was made by way of prospectus supplement in September 2018, to the short-form base shelf prospectus dated November 10, 2016 and the shelf registration statement dated August 22, 2018, for up to $25 million. Of the $4,619 total aggregate proceeds raised in this financing, the $2,296 fair value of the warrants was attributed to warrant liability (Note 16), and the residual amount of $2,323 was attributed to common shares. The Company paid a 7% cash commission on the gross proceed in the amount of $324, and incurred additional legal costs of $185. Costs of $253 were allocated to the fair value of the warrants and have been reflected in the consolidated statement of operations as a finance cost, and costs of $256 have been reflected as share issuance costs in the consolidated statement of changes in equity. An additional $168 in issuance costs relating to the shelf registration statement have also been reflected in the consolidated statement of changes in equity During the year ended December 31, 2018, the Company issued 3 million common shares by way of flow-through financing for gross proceeds of $4,667 (C$6,000). This amount includes a flow-through premium, which represents the difference between the Company’s share price on the date of issuance, and the offering price of C$2.00 per share. Based on the C$ to US$ exchange rate on the date of the transaction, $444 was recorded as the flow-through premium, for a net share capital allocation of $4,223. This premium is presented in “Other liabilities” on the balance sheet as at December 31, 2018. The Company incurred $471 in commission and issuance costs in relation to the offering. During the year ended December 31, 2018, the Company issued 151,800 common shares in an at-the-market offering under prospectus supplement for gross proceeds of $137. The Company pays a 3% cash commission on gross proceeds and incurred $4 in issuance costs during the period. During the year ended December 31, 2018, the Company issued 87,500 common shares upon the exercise of stock options for gross proceeds of $112. The Company also issued 274,658 common shares upon exercise of RSUs. The Company incurred $5 in issuance costs in relation to these exercises. (ii) During the year ended December 31, 2017, the Company issued shares in an at-the-market offering under prospectus supplements for an aggregate of 10,000 common shares at an average price of $1.67 for net proceeds of $16. During the year ended December 31, 2017, the Company issued 20,000 common shares upon the exercise of stock options for gross proceeds of $25. During the year ended December 31, 2017, the Company issued 257,152 common shares upon the vesting of restricted share units. (c) Stock options: The Company has a stock option plan to purchase the Company’s common shares, under which it may grant stock options of up to 10% of the Company’s total number of shares issued and outstanding on a non-diluted basis. The stock option plan provides for the granting of stock options to directors, officers, and employees, and to persons providing investor relations or consulting services, the limits being based on the Company’s total number of issued and outstanding shares per year. The stock options vest on the date of grant, except for those issued to persons providing investor relations services, which vest over a period of one year. The option price must be greater than or equal to the discounted market price on the grant date, and the option term cannot exceed ten years from the grant date. Continuity of stock options for the years ended December 31, 2018, and 2017, is as follows: Underlying Shares Weighted Average Exercise Price (C$) Stock options outstanding and exercisable, January 1, 2017 1,978,500 $ 2.24 Granted 1,475,000 $ 1.98 Cancelled / Forfeited (122,500 ) $ 2.54 Exercised (20,000 ) $ 1.62 Stock options outstanding and exercisable, December 31, 2017 3,311,000 $ 2.12 Granted 497,500 $ 1.30 Cancelled / Forfeited (497,500 ) $ 2.14 Expired (306,000 ) $ 1.61 Exercised (87,500 ) $ 1.61 Stock options outstanding, December 31, 2018 2,917,500 $ 2.04 Stock options exercisable, December 31, 2018 2,576,250 $ 2.14 The following table summarizes information about the Company’s stock options outstanding and exercisable at December 31, 2018: Outstanding Exercisable Expiry Date Price (C$) Options Outstanding Weighted Average Remaining Contractual Life (Years) Options Outstanding Weighted Average Remaining Contractual Life (Years) September 19, 2019 $ 1.90 570,000 0.72 570,000 0.72 December 22, 2019 $ 1.90 30,000 0.98 30,000 0.98 September 2, 2021 $ 2.95 552,500 2.67 552,500 2.67 September 20, 2022 $ 1.98 1,295,000 3.72 1,295,000 3.72 October 6, 2022 $ 1.98 15,000 3.77 15,000 3.77 August 28, 2023 $ 1.30 455,000 4.66 113,750 4.66 2,917,500 3.06 2,576,250 2.84 Option pricing requires the use of highly subjective estimates and assumptions including the expected stock price volatility. The expected volatility used in valuing stock options is based on volatility observed in historical periods. Changes in the underlying assumptions can materially affect the fair value estimates. The fair value of the options granted during the years ended December 31, 2018, 2017 and 2016, was calculated using the Black-Scholes model with the following weighted average assumptions and resulting grant date fair value: 2018 2017 2016 Weighted average assumptions: Risk-free interest rate 2.25 % 1.80 % 0.69 % Expected dividend yield 0 % 0 % 0 % Expected option life (years) 5.00 5.00 5.00 Expected stock price volatility 60.26 % 68.24 % 65.13 % Weighted average fair value at grant date $ C0.53 $ C1.14 $ C1.60 During the year ended December 31, 2018, the Company charged $130 (2017 - $1,177, 2016 - $875) to operations as share-based payments and capitalized $20 (2017 - $127, 2016 - $96) to exploration and evaluation assets. (d) Restricted Share Units: On April 19, 2018, the Company’s Restricted Share Unit (“RSU”) Plan was approved by its shareholders. The RSU Plan is administered by the Compensation Committee under the supervision of the Board of Directors as compensation to officers, directors, consultants, and employees. The Compensation Committee determines the terms and conditions upon which a grant is made, including any performance criteria or vesting period. Upon vesting, each RSU entitles the participant to receive one common share, provided that the participant is continuously employed with or providing services to the Company. RSUs track the value of the underlying common shares, but do not entitle the recipient to the underlying common shares until such RSUs vest, nor do they entitle a holder to exercise voting rights or any other rights attached to ownership or control of the common shares, until the RSU vests and the RSU participant receives common shares. During the year ended December 31, 2018, 1,081,500 RSUs (2017 – 80,500, 2016 – 790,000) were granted. All RSUs granted vest one-third annually from the date of the grant until fully vested at the end of the three-year term. The weighted average fair value of the RSUs granted during the year ended December 31, 2018, was C$1.31, based on the TSX market price of the Company’s shares on the date the RSUs were granted. At December 31, 2018, there were 1,235,301 RSUs outstanding (December 31, 2017 – 592,172, December 31, 2016 – 787,500). During the year ended December 31, 2018, the Company charged $500 (2017 - $841, 2016 - $343) to operations as share-based payments and capitalized $50 (2017 - $116, 2016 - $35) to exploration and evaluation assets for the fair value of the RSUs issued. The fair value of the RSUs is recognized over the vesting period with reference to vesting conditions and the estimated RSUs expected to vest. (e) Earnings per share: The calculations for basic and diluted earnings per share are as follows: 2018 2017 (Note 3) 2016 (Note 3) Net income (loss) for the period $ 1,626 $ 2,522 $ 2,016 Basic weighted average number of shares outstanding 56,851,626 52,523,454 42,695,999 Effect of dilutive share options, warrants, and RSUs 3,149,011 796,555 1,095,452 Diluted weighted average number of shares outstanding 60,000,637 53,320,009 43,791,451 Basic earnings per share $ 0.03 $ 0.05 $ 0.05 Diluted earnings per share $ 0.03 $ 0.05 $ 0.05 |
20. REVENUE AND COST OF SALES
20. REVENUE AND COST OF SALES | 12 Months Ended |
Dec. 31, 2018 | |
Revenue And Cost Of Sales | |
Note 20 - REVENUE AND COST OF SALES | The Company’s revenues for the year ended December 31, 2018 of $34,116 (2017 - $33,359, 2016 - $34,692) are all attributable to Mexico, from shipments of concentrate produced by the Avino Mine, the San Gonzalo Mine, and processing of Historical Above Ground Stockpiles. 2018 2017 (Note 3) 2016 (Note 3) Concentrate sales $ 34,551 $ 33,327 $ 34,925 Provisional pricing adjustments (435 ) 32 (233 ) $ 34,116 $ 33,359 $ 34,692 Cost of sales consists of changes in inventories, direct costs including personnel costs, mine site costs, energy costs (principally diesel fuel and electricity), maintenance and repair costs, operating supplies, external services, third party transport fees, depreciation and depletion, and other expenses for the periods. Direct costs include the costs of extracting co-products. Cost of sales is based on the weighted average cost of inventory sold for the periods and consists of the following: 2018 2017 (Note 3) 2016 (Note 3) Production costs $ 24,619 $ 19,418 $ 21,060 Depreciation and depletion 3,231 2,688 1,901 $ 27,850 $ 22,106 $ 22,961 |
21. GENERAL AND ADMINISTRATIVE
21. GENERAL AND ADMINISTRATIVE EXPENSES | 12 Months Ended |
Dec. 31, 2018 | |
General And Administrative Expenses | |
Note 21 - GENERAL AND ADMINISTRATIVE EXPENSES | General and administrative expenses on the consolidated statements of operations consist of the following: 2018 2017 2016 Salaries and benefits $ 1,257 $ 1,196 $ 1,159 Office and miscellaneous 300 464 925 Management and consulting fees 354 443 495 Investor relations 402 366 258 Travel and promotion 226 323 359 Professional fees 529 247 172 Directors fees 161 158 166 Regulatory and compliance fees 311 101 243 Depreciation 25 15 12 $ 3,565 $ 3,313 $ 3,789 |
22. COMMITMENTS
22. COMMITMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Commitments | |
Note 22 - COMMITMENTS | The Company has a cost sharing agreement to reimburse Oniva for a percentage of its overhead expenses, to reimburse 100% of its out-of-pocket expenses incurred on behalf of the Company, and to pay a percentage fee based on Oniva’s total overhead and corporate expenses. The agreement may be terminated with one-month notice by either party. Transactions and balances with Oniva are disclosed in Note 12 . The Company and its subsidiaries have various operating lease agreements for their office premises, use of land, and equipment. Commitments in respect of these lease agreements are as follows: December 31, 2018 December 31, 2017 January 1, 2017 Not later than one year $ 3,092 $ 300 $ 1,540 Later than one year and not later than five years 74 251 557 Later than five years 10 15 20 $ 3,176 $ 566 $ 2,117 Included in the above amount as at December 31, 2018, is the Company’s commitment to incur flow-through eligible expenditures of $2,930 (C$3,997) that must be incurred in Canada. Office lease payments recognized as an expense during the year ended December 31, 2018, totalled $81 (2017 - $81, 2016 - $83). |
23. SUPPLEMENTARY CASH FLOW INF
23. SUPPLEMENTARY CASH FLOW INFORMATION | 12 Months Ended |
Dec. 31, 2018 | |
Supplementary Cash Flow Information | |
Note 23 - SUPPLEMENTARY CASH FLOW INFORMATION | 2018 2017 2016 Net change in non-cash working capital items: Deferred revenues $ 573 $ - $ - Accounts payable and accrued liabilities 2,329 (136 ) 708 Prepaid expenses and other assets 981 (1,672 ) (115 ) Amounts receivable 543 (1,585 ) (355 ) Taxes payable (358 ) (292 ) (14 ) Amounts due to related parties (44 ) 1 42 Taxes recoverable 1,017 (2,828 ) (1,323 ) Inventory (42 ) (2,565 ) (41 ) $ 4,999 $ (9,077 ) $ (1,098 ) 2018 2017 2016 Interest paid $ 959 $ 445 $ 471 Taxes paid $ 4,991 $ 5,765 $ 3,136 Equipment acquired under finance leases and equipment loans $ 1,771 $ 1,228 $ 3,452 |
24. FINANCIAL INSTRUMENTS
24. FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Financial Instruments | |
Note 24 - FINANCIAL INSTRUMENTS | The fair values of the Company’s amounts due to related parties and accounts payable approximate their carrying values because of the short-term nature of these instruments. Cash, amounts receivable, short- and long-term investments, and warrant liability are recorded at fair value. The carrying amounts of the Company’s term facility, equipment loans, and finance lease obligations are a reasonable approximation of their fair values based on current market rates for similar financial instruments. The Company’s financial instruments are exposed to certain financial risks, including credit risk, liquidity risk, and market risk. (a) Credit Risk Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The Company has exposure to credit risk through its cash, short-term investments and amounts receivable. The Company manages credit risk, in respect of cash and short-term investments, by maintaining the majority of cash and short-term investments at highly rated financial institutions. The Company is exposed to a significant concentration of credit risk with respect to its trade accounts receivable balance because all of its concentrate sales are with six (December 31, 2017 – three, January 1, 2017 – three) counterparties (see Note 26). However, the Company has not recorded any allowance against its trade receivables because to-date all balances owed have been settled in full when due (typically within 60 days of submission) and because of the nature of the counterparties. The Company’s maximum exposure to credit risk at the end of any period is equal to the carrying amount of these financial assets as recorded in the consolidated statement of financial position. At December 31, 2018, no amounts were held as collateral. (b) Liquidity Risk Liquidity risk is the risk that the Company will encounter difficulty in satisfying financial obligations as they become due. The Company manages its liquidity risk by forecasting cash flows required by its operating, investing and financing activities. The Company had cash at December 31, 2018, in the amount of $3,252 and working capital of $13,106 in order to meet short-term business requirements. Accounts payable have contractual maturities of approximately 30 to 90 days, or are due on demand and are subject to normal trade terms. The current portions of term facility, equipment loans, and finance lease obligations are due within 12 months of the consolidated statement of financial position date. Amounts due to related parties are without stated terms of interest or repayment. The maturity profiles of the Company’s contractual obligations and commitments as at December 31, 2018, are summarized as follows: Total Less Than 1 Year 1-5 years More Than 5 Years Accounts payable and accrued liabilities $ 5,885 $ 5,885 $ - $ - Due to related parties 157 157 - - Minimum rental and lease payments 246 162 74 10 Term facility 7,669 1,432 6,237 - Equipment loans 978 550 428 - Finance lease obligations 1,889 942 947 - Total $ 16,824 $ 9,128 $ 7,686 $ 10 (c) Market Risk Market risk consists of interest rate risk, foreign currency risk and price risk. These are discussed further below. Interest Rate Risk Interest rate risk consists of two components: (i) To the extent that payments made or received on the Company’s monetary assets and liabilities are affected by changes in the prevailing market interest rates, the Company is exposed to interest rate cash flow risk. (ii) To the extent that changes in prevailing market rates differ from the interest rates on the Company’s monetary assets and liabilities, the Company is exposed to interest rate price risk. In management’s opinion, the Company is exposed to interest rate risk primarily on its outstanding term facility, as the interest rate is subject to floating rates of interest. A 10% change in the interest rate would not a result in a material impact on the Company’s operations. Foreign Currency Risk Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in foreign exchange rates. The Company is exposed to foreign currency risk to the extent that the following monetary assets and liabilities are denominated in Mexican pesos and Canadian dollars: December 31, 2018 December 31, 2017 MXN CDN MXN CDN Cash $ 8,378 $ 2,421 $ 9,504 $ 321 Long-term investments - 14 - 42 Reclamation bonds - 146 - 896 Amounts receivable - 114 - 132 Accounts payable and accrued liabilities (85,951 ) (891 ) (27,482 ) (603 ) Due to related parties - (215 ) - (225 ) Equipment loans - (301 ) - (782 ) Finance lease obligations (13,907 ) (533 ) (751 ) (1,002 ) Net exposure (91,480 ) 755 (18,729 ) (1,221 ) US dollar equivalent $ (4,656 ) $ 554 $ (949 ) $ (974 ) Based on the net US dollar denominated asset and liability exposures as at December 31, 2018, a 10% fluctuation in the US/Mexican and Canadian/US exchange rates would impact the Company’s earnings (loss) for the year ended December 31, 2018, by approximately $452 (December 31, 2017 - $327). The Company has not entered into any foreign currency contracts to mitigate this risk. Price Risk Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market prices, other than those arising from interest rate risk or foreign currency risk. The Company is exposed to price risk with respect to its accounts receivable, as certain trade accounts receivable are recorded based on provisional terms that are subsequently adjusted according to quoted metal prices at the date of final settlement. Quoted metal prices are affected by numerous factors beyond the Company’s control and are subject to volatility, and the Company does not employ hedging strategies to limit its exposure to price risk. At December 31, 2018, based on outstanding accounts receivable that were subject to pricing adjustments, a 10% change in metals prices would have an impact on net earnings (loss) of approximately $419 (December 31, 2017 - $224). The Company is exposed to price risk with respect to its long-term investments, as these investments are carried at fair value based on quoted market prices. Changes in market prices result in gains or losses being recognized in net income (loss). A 10% change in market prices would not have a material impact on the Company’s operations. The Company’s profitability and ability to raise capital to fund exploration, evaluation and production activities is subject to risks associated with fluctuations in mineral prices. Management closely monitors commodity prices, individual equity movements, and the stock market to determine the appropriate course of action to be taken by the Company. (d) Classification of Financial Instruments IFRS 7 Financial Instruments: Disclosures Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 – inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and Level 3 – inputs for the asset or liability that are not based on observable market data (unobservable inputs). The following table sets forth the Company’s financial assets and financial liabilities measured at fair value on a recurring basis by level within the fair value hierarchy as at December 31, 2018: Level 1 Level 2 Level 3 Financial assets Cash $ 3,252 $ - $ - Amounts receivable - 4,091 - Long-term investments 10 - - Financial liabilities Warrant liability - - (2,009 ) Total financial assets and liabilities $ 3,262 $ 4,091 $ (2,009 ) |
25. CAPITAL MANAGEMENT
25. CAPITAL MANAGEMENT | 12 Months Ended |
Dec. 31, 2018 | |
Capital Management | |
Note 25 - 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 exploration and expansion of its properties and to maintain a flexible capital structure for its projects for the benefit of its stakeholders. In the management of capital, the Company includes equity (comprising of all issued share capital, equity reserves, retained earnings or accumulated deficit, and other comprehensive income (loss)), the term facility, equipment loan obligations, and finance lease, are listed as follows: December 31, December 31, January 1, 2018 2017 2017 Equity $ 75,168 $ 69,002 $ 61,794 Term Facility 6,901 8,667 9,333 Finance Lease Obligations 1,819 2,349 2,812 Equipment Loans 928 1,246 2,168 $ 84,816 $ 81,264 $ 76,107 The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying assets. To maintain or adjust its capital structure, the Company may attempt to incur new debt or issue new shares. Management reviews the Company’s capital structure on an ongoing basis and believes that this approach, given the relative size of the Company, is reasonable. At December 31, 2018, the Company expects its capital resources and projected future cash flows from operations to support its normal operating requirements on an ongoing basis, and planned development and exploration of its mineral properties and other expansionary plans. At December 31, 2018, there was no externally imposed capital requirement to which the Company was subject and with which the Company did not comply. |
26. SEGMENTED INFORMATION
26. SEGMENTED INFORMATION | 12 Months Ended |
Dec. 31, 2018 | |
Segmented Information | |
Note 26 - SEGMENTED INFORMATION | The Company’s revenues for the Year ended December 31, 2018 of $34,116 (2017 - $33,359; 2016 – 34,692) are all attributable to Mexico, from shipments of concentrate produced by the Avino Mine and the San Gonzalo Mine. On the consolidated statements of operations, the Company had revenue from the following product mixes: 2018 2017 2016 Silver $ 17,259 $ 20,159 $ 23,641 Copper 12,996 8,227 9,593 Gold 9,866 10,131 7,508 Penalties, treatment costs and refining charges (6,005 ) (5,158 ) (6,050 ) Total revenue from mining operations $ 34,116 $ 33,359 $ 34,692 For the year ended December 31, 2018, the Company had six customers (2017 and 2016 – three customers) that accounted for total revenues as follows: 2018 2017 2016 Customer #1 $ 23,314 $ 24,845 $ 23,833 Customer #2 1,547 7,452 6,319 Customer #3 344 - - Customer #4 321 1,062 4,540 Customer #5 519 - - Customer #6 8,071 - - Total revenue from mining operations $ 34,116 $ 33,359 $ 34,692 Geographical information relating to the Company’s non-current assets (other than financial instruments) is as follows: December 31, 2018 December 31, 2017 January 1, 2017 Exploration and evaluation assets - Mexico $ 9,692 $ 9,034 $ 7,979 Exploration and evaluation assets - Canada 37,089 34,304 22,813 Total exploration and evaluation assets $ 46,781 $ 43,338 $ 30,792 December 31, 2018 December 31, 2017 January 1, 2017 Plant, equipment, and mining properties - Mexico $ 36,484 $ 28,834 $ 24,578 Plant, equipment, and mining properties - Canada 2,259 3,324 3,498 Total plant, equipment, and mining properties $ 38,743 $ 32,158 $ 28,076 |
27. INCOME TAXES
27. INCOME TAXES | 12 Months Ended |
Dec. 31, 2018 | |
Income Taxes | |
Note 27 - INCOME TAXES | (a) Income tax expense Income tax expense included in the consolidated statements of operations and comprehensive income (loss) is as follows: 2018 2017 2016 Current income tax expense $ 1,052 $ 2,911 $ 3,434 Deferred income tax expense (recovery) (645 ) (140 ) 1,005 Total income tax expense $ 407 $ 2,771 $ 4,439 The reconciliation of income taxes calculated at the Canadian statutory tax rate to the income tax expense recognized in the year is as follows: 2018 2017 2016 (Note 3) (Note 3) Net income before income taxes $ 2,033 $ 5,293 $ 6,455 Combined statutory tax rate 27.00 % 26.00 % 26.00 % Income tax expense at the Canadian statutory rate 549 1,376 1,678 Reconciling items: Effect of difference in foreign tax rates 48 285 307 Non-deductible/non-taxable items (121 ) 602 700 Change in unrecognized deductible temporary differences (257 ) 1,086 1,408 Impact of foreign exchange 915 (491 ) 778 Special mining duties 117 511 780 Impact of change of tax rates - (322 ) - Revisions to estimates (368 ) (248 ) (1,095 ) Share issue costs (231 ) - (379 ) Other items (245 ) (106 ) 262 Income tax expense recognized in the year $ 407 $ 2,771 $ 4,439 The Company recognized a non-cash expense of $379 for the year ended December 31, 2018 (2017 - $51; 2016 - $316) related to the deferred tax impact of the special mining duty. The Canadian income tax rate increased from 26% to 27% effective January 1, 2018, with a statutory impact prior to year-end. The impact of this change has been reflected in the consolidated financial statements. December 31, December 31, January 1, 2018 2017 2017 Deferred income tax assets $ 4,654 $ 4,888 $ 2,831 Deferred income tax liabilities (8,557 ) (9,436 ) (7,519 ) $ (3,903 ) $ (4,548 ) $ (4,688 ) The approximate tax effects of each type of temporary difference that gives rise to potential deferred income tax assets and liabilities are as follows: December 31, 2018 December 31, 2017 January 1, 2017 Reclamation provision $ 491 $ 594 $ 503 Non-capital losses 3,104 3,197 - Other deductible temporary differences 1,059 1,097 2,328 Inventory (94 ) (230 ) (101 ) Exploration and evaluation assets (6,378 ) (6,464 ) (4,265 ) Plant, equipment and mining properties (2,085 ) (2,742 ) (3,153 ) Net deferred income tax liabilities $ (3,903 ) $ (4,548 ) $ (4,688 ) The net deferred tax liability presented in these consolidated financial statements is due to the difference in the carrying amounts and tax bases of the Mexican plant, equipment and mining properties which were acquired in the purchase of Avino Mexico. The carrying values of the Mexican plant, equipment and mining properties includes an estimated fair value adjustment recorded upon the July 17, 2006, acquisition of control of Avino Mexico that was based on a share exchange, while the tax bases of these assets are historical undeducted tax amounts that were nil on acquisition. The deferred tax liability is attributable to assets in the tax jurisdiction of Mexico. (b) Unrecognized deductible temporary differences: Temporary differences and tax losses arising in Canada have not been recognized as deferred income tax assets due to the fact that management has determined it is not probable that sufficient future taxable profits will be earned in Canada to recover such assets. Unrecognized deductible temporary differences are summarized as follows: December 31, 2017 December 31, 2016 January 1, 2016 Tax losses carried forward $ 13,790 $ 13,973 $ 17,350 Share issue costs 1,263 1,100 1,466 Plant, equipment and mining properties 6,096 6,198 3,873 Exploration and evaluation assets 1,207 1,330 1,257 Investments 44 198 189 Reclamation provision and other 9,489 10,054 5,603 Unrecognized deductible temporary differences $ 31,889 $ 32,853 $ 29,739 The Company has capital losses of $1,489 carried forward and $12,301 in non-capital tax losses carried forward available to reduce future Canadian taxable income. The capital losses can be carried forward indefinitely until used. The non-capital losses have an expiry date range of 2022 to 2038. As at December 31, 2018, the Company had no Mexican tax losses available to offset future Mexican taxable income. |
28. SUBSEQUENT EVENT
28. SUBSEQUENT EVENT | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Event | |
Note 28 - SUBSEQUENT EVENT | Subsequent to December 31, 2018, the Company issued 835,189 common shares through “at the market” offering under prospectus supplement for gross proceeds of $517. The Company pays a 3% cash commission on gross proceeds and incurred $15 in issuance costs during the period, for net proceeds of $502. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Significant Accounting Policies Policies Abstract | |
Exploration and evaluation assets and development costs | (i) Exploration and evaluation expenditures The Company capitalizes all costs relating to the acquisition, exploration and evaluation of mineral claims. Expenditures incurred before the Company has obtained the legal rights to explore a specific area are expensed. The Company’s capitalized exploration and evaluation costs are classified as intangible assets. Such costs include, but are not limited to, certain camp costs, geophysical studies, exploratory drilling, geological and sampling expenditures, and depreciation of plant and equipment during the exploration stage. Costs not directly attributable to exploration and evaluation activities, including general administrative overhead costs, are expensed in the period in which they occur. Proceeds from the sale of mineral products or farm outs during the exploration and evaluation stage are deducted from the related capitalized costs. The carrying values of capitalized amounts are reviewed annually, or when indicators of impairment are present. In the case of undeveloped properties, there may be only inferred resources to allow management to form a basis for the impairment review. The review is based on the Company’s intentions for the development of such properties. If a mineral property does not prove to be viable, all unrecoverable costs associated with the property are charged to the consolidated statement of comprehensive income (loss) at the time the determination is made. When the technical feasibility and commercial viability of extracting mineral resources have been demonstrated, exploration and evaluation costs are assessed for impairment, reclassified to mining properties and become subject to depletion. Management considers the technical feasibility and commercial viability of extracting a mineral resource to be demonstrable upon the completion of a positive feasibility study and the establishment of mineral reserves. For certain mineral projects, management may determine the completion of a feasibility study to be cost prohibitive, unnecessary or to present undue risk to the structural integrity of the ore body. Under such circumstances, management considers technical feasibility to be demonstrable when the Company has obtained the necessary environmental and mining permits, land surface and mineral access rights, and the mineral project can be physically constructed and operated in a technically sound manner to produce a saleable mineral product. In assessing whether commercial viability is demonstrable, management considers if its internal economic assessment indicates that the mineral project can be mined to generate a reasonable return on investment for the risk undertaken, and markets or long-term contracts for the product exist. (ii) Development expenditures Mine Development Costs are capitalized until the mineral property is capable of operating in the manner intended by management. The Company evaluates the following factors in determining whether a mining property is capable of operating in the manner intended by management: · The completion and assessment of a reasonable commissioning period of the mill and mining facilities; · Consistent operating results are achieved during the test period; · Existence of clear indicators that operating levels intended by management will be sustainable for the foreseeable future; · Plant / mill has reached a pre-determined percentage of design capacity; · Adequate funding is available and can be allocated to the operating activities; and, · Long term sales arrangements have been secured. The carrying values of capitalized development costs are reviewed annually, or when indicators are present, for impairment. |
Effect of change in accounting policy | As a result of applying the change in accounting policy, the Company has determined that the production phase would have commenced effective July 1, 2015. Accordingly, the Company determined that the accumulated impact on its consolidated statement of financial position would be an increase in plant, equipment and mining properties, and the impact of its consolidated statement of operations and comprehensive income (loss) would be an increase in revenue from mining operations and costs of sales as such amounts are not offset during production, resulting in a decreased in accumulated deficit. The retrospective application of this change in accounting policy on the Company’s consolidated statement of financial position as at January 1, 2017 and December 31, 2017, is as follows: As Previously Reported January 1, 2017 Adjustment As Adjusted January 1, 2017 ASSETS Total current assets $ 35,128 $ - $ 35,128 Plant, equipment and mining properties 27,739 337 28,076 Other long-term assets 30,927 - 30,927 Total assets $ 93,794 $ 337 $ 94,131 LIABILITIES Total liabilities $ 32,337 $ - $ 32,337 EQUITY Accumulated deficit (21,875 ) 337 (21,538 ) Other equity 83,332 - 83,332 Total equity 61,457 337 61,794 Total liabilities and equity $ 93,794 $ 337 $ 94,131 As Previously Reported December 31, 2017 Adjustment As Adjusted December 31, 2017 ASSETS Total current assets $ 26,591 $ - $ 26,591 Plant, equipment and mining properties 31,952 206 32,158 Other long-term assets 44,086 - 44,086 Total assets $ 102,629 $ 206 $ 102,835 LIABILITIES Total liabilities $ 33,833 $ - $ 33,833 EQUITY Accumulated deficit (19,083 ) 206 (18,877 ) Other equity 87,879 - 87,879 Total equity 68,796 206 69,002 Total liabilities and equity $ 102,629 $ 206 $ 102,835 The retrospective application of this change in accounting policy on the Company’s consolidated statements of operations and comprehensive income for the years ended December 31, 2017 and 2016, are as follows: As Previously Reported 2016 Adjustment As Adjusted 2016 Revenue from mining operations $ 30,105 $ 4,587 $ 34,692 Cost of sales 19,161 3,800 22,961 Mine operating income 10,944 787 11,731 Operating expenses and other items 5,276 - 5,276 Net income before income taxes 5,668 787 6,455 Income taxes 4,164 275 4,439 Net income 1,504 512 2,016 Earnings per share Basic $ 0.04 $ 0.01 $ 0.05 Diluted $ 0.03 $ 0.02 $ 0.05 As Previously Reported 2017 Adjustment As Adjusted 2017 Revenue from mining operations $ 33,359 $ - $ 33,359 Cost of sales 21,975 131 22,106 Mine operating income 11,384 (131 ) 11,253 Operating expenses and other items 5,960 - 5,960 Net income before income taxes 5,424 (131 ) 5,293 Income taxes 2,771 - 2,771 Net income 2,653 (131 ) 2,522 Earnings per share Basic $ 0.05 $ 0.00 $ 0.05 Diluted $ 0.05 $ 0.00 $ 0.05 The retrospective application of this change in accounting policy on the Company’s consolidated statements of cash flows for the years ended December 31, 2017 and 2016, are as follows: As Previously Reported 2016 Adjustment As Adjusted 2016 Cash generated by (used in) Operating Activities Net income $ 1,504 $ 512 $ 2,016 Adjustments for non-cash items: Depreciation and depletion 1,341 572 1,913 Other changes in operating activities 1,992 - 1,992 Total before changes in non-cash working capital items 4,837 1,084 5,921 Net change in non-cash working capital items (1,098 ) - (1,098 ) Total cash generated by operating activities 3,739 1,084 4,823 Financing Activities Total cash generated by financing activities 20,006 - 20,006 Investing Activities Exploration and evaluation expenditures (8,313 ) 3,503 (4,810 ) Recovery of exploration costs from concentrate proceeds 4,587 (4,587 ) - Other changes in investing activities (13,683 ) - (13,683 ) Total cash used in investing activities (17,409 ) (1,084 ) (18,493 ) Change in cash and effect of exchange rates 6,336 - 6,336 Effect of exchange rates 43 - 43 Cash, Beginning 5,401 - 5,401 Cash, Ending $ 11,780 $ - $ 11,780 As Previously Reported 2017 Adjustment As Adjusted 2017 Cash generated by (used in) Operating Activities Net income $ 2,653 $ (131 ) $ 2,522 Adjustments for non-cash items: Depreciation and depletion 2,572 131 2,703 Other changes in operating activities 1,685 - 1,685 Total before changes in non-cash working capital items 6,910 - 6,910 Net change in non-cash working capital items (9,077 ) - (9,077 ) Total cash used in operating activities (2,167 ) - (2,167 ) Financing Activities Total cash used in financing activities (3,055 ) - (3,055 ) Investing Activities Total cash used in investing activities (3,135 ) - (3,135 ) Change in cash (8,357 ) - (8,357 ) Effect of exchange rates (3 ) - (3 ) Cash, Beginning 11,780 - 11,780 Cash, Ending $ 3,420 $ - $ 3,420 |
Plant, equipment, and mining properties | Upon demonstrating the technical feasibility and commercial viability of extracting mineral resources, all expenditures incurred to that date for the mine are reclassified to mining properties. Expenditures capitalized to mining properties include all costs related to obtaining or expanding access to resources including extensions of the haulage ramp and installation of underground infrastructure, and the estimated reclamation provision. Expenditures incurred with respect to a mining property are capitalized when it is probable that additional future economic benefits will flow to the Company. Otherwise, such expenditures are classified as a cost of sales. Plant and equipment are recorded at historical cost less accumulated depreciation and any accumulated impairment losses. Historical costs include expenditures that are directly attributable to bringing the asset to a location and condition necessary to operate in a manner intended by management. Such costs are accumulated as construction in progress until the asset is available for use, at which point the asset is classified as plant, equipment and mining properties and depreciation commences. After the date that management’s intended production levels have been achieved, mining properties are depleted using the straight-line method over the estimated remaining life of the mine. The Company estimates the remaining life of its producing mineral properties on an annual basis using a combination of quantitative and qualitative factors including historical results, mineral resource estimates, and management’s intent to operate the property. The Company does not have sufficient reserve information to form a basis for the application of the units-of-production method for depreciation and depletion. As at December 31, 2018 and 2017, and January 1, 2017, the Company estimated a remaining mine life for San Gonzalo of 0.8, 0.8, and 1.8 years, respectively. As at December 31, 2018 and 2017, and January 1, 2017, the Company estimated a remaining mine life for the Avino Mine of 9.5, 10.3, and 11.3 years, respectively. Accumulated mill, machinery, plant facilities, and certain equipment are depreciated using the straight-line method over their estimated useful lives, not to exceed the life of the mine for any assets that are inseparable from the mine. When parts of an item of plant and equipment have different useful lives, they are accounted for as separate items (or components) of plant and equipment. Plant and equipment are depreciated using the following annual rates and methods: Office equipment, furniture, and fixtures 20% declining balance Computer equipment 30% declining balance Mine machinery and transportation equipment 20% declining balance Mill machinery and processing equipment 5 - 20 years straight line Buildings 5 - 20 years straight line |
Impairment | At each financial position reporting date, the carrying amounts of the Company’s assets are reviewed to determine whether there is any indication that those assets are impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment, if any. Where the asset does not generate cash flows that are independent from other assets, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. An asset’s recoverable amount is the higher of fair value less costs to sell and value in use. Fair value is determined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. 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 asset is reduced to its recoverable amount and the impairment loss is recognized in profit or loss for the period. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, provided the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognized immediately in profit or loss. |
Leases | Leases in which the Company assumes substantially all risks and rewards of ownership are classified as finance leases. Assets held under finance leases are recognized at the lower of the fair value and present value of the minimum lease payments at inception of the lease, less accumulated depreciation and impairment losses. The corresponding liability is recognized as a finance lease obligation. Lease payments are apportioned between finance charges and reduction of the lease obligation to achieve a constant rate of interest on the remaining liability. Finance charges are recorded as a finance expense within profit and loss, unless they are attributable to qualifying assets, in which case they are capitalized. Operating lease payments are recognized on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed, in which case that systematic basis is used. Operating lease payments are recorded within profit and loss unless they are attributable to qualifying assets, in which case they are capitalized. |
Inventory | Material extracted from the Company’s mine is classified as either process material or waste. Process material represents mineralized material that, at the time of extraction, the Company expects to process into a saleable form and sell at a profit, while waste is considered uneconomic to process and its extraction cost is included in direct mining costs. Raw materials are comprised of process material stockpiles. Process material is accumulated in stockpiles that are subsequently processed into bulk copper, silver, and gold concentrate in a saleable form. The Company has bulk copper, silver, and gold concentrate inventory in saleable form that has not yet been sold. Mine operating supplies represent commodity consumables and other raw materials used in the production process, as well as spare parts and other maintenance supplies that are not classified as capital items. Inventories are valued at the lower of cost and net realizable value (“NRV”). Cost is determined on a weighted average basis and includes all costs incurred, based on normal production capacity, in bringing each product to its present location and condition. Cost of inventories comprises direct labor, materials and contractor expenses, depletion and depreciation on mining properties, plant and equipment, and an allocation of mine site costs. As mineralized material is removed for processing, costs are removed based on the average cost per tonne in the stockpile. Stockpiled process material tonnages are verified by periodic surveys. NRV of mineralized material is determined with reference to relevant market prices less applicable variable selling expenses and costs to bring the inventory into its saleable form. NRV of materials and supplies is generally calculated by reference to salvage or scrap values when it is determined that the supplies are obsolete. NRV provisions are recorded within cost of sales in the consolidated statement of operations, and are reversed to reflect subsequent recoveries where the inventory is still on hand. |
Revenue from Contracts with Customers | Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue and costs to sell can be reliably measured. Revenue is measured at the fair value of the consideration received, excluding discounts, rebates, and other sales tax or duty. Performance Obligations Based on the criteria outlined in IFRS 15, the Company applied significant judgment in determining that the primary performance obligation relating to its sales contracts is the delivery of concentrates. Shipping and insurance services arranged by the Company for concentrate sales that occur after the transfer of control are also considered performance obligations. Transfer of Control Based on the criteria outlined in IFRS 15, the Company applied significant judgment in determining when the transfer of control occurs. Management based its assessment on a number of indicators of control, which include but are not limited to, whether the Company has the present right of payment and whether the physical possession of the goods, significant risks and rewards, and legal title have been transferred to the customer. Provisional Pricing Based on the criteria outlined in IFRS 15, the Company applied significant judgment in determining variable consideration. The Company identified two provisional pricing components in concentrate sales, represents variable consideration in the form of a) adjustments between original and final assay results relating to the quantity and quality of concentrate shipments, as well as b) pricing adjustments between provisional and final invoicing based on market prices for base and precious metals. Based on the Company’s historical accuracy in the assay process, as evidenced by the negligible historical adjustments relating to assay differences, the Company concluded the variability in consideration caused by the assaying results is negligible. The Company does not expect a significant amount of reversal related to assaying differences. The Company records revenues based on provisional invoices based on quoted market prices of the London Bullion Market Association and the London Metal Exchange during the quotation period outlined in the concentrate sales agreement. The Company applied judgment to determine the amount of variable consideration to be recognized during the period for which the likelihood of significant reversal is low. |
Financial Instruments | Measurement – initial recognition All financial assets and financial liabilities are initially recorded on the Company’s consolidated statement of financial position when the Company becomes a party to the contractual provisions of the instrument. All financial asset and liabilities are initially recorded at fair value, net of attributable transaction costs, except for those classified as fair value through profit or loss (“FVTPL”). Subsequent measurement of financial assets and financial liabilities depends on the classifications of such assets and liabilities. Classification – financial assets Amortized cost: Financial assets that are held within a business model whose objective is to hold financial assets in order to collect contractual cash flows, and that the contractual terms of the financial assets give rise on specified date to cash flows that are solely payments of principal and interest on the principal amount outstanding, are measured subsequent to initial recognition at amortized cost. The amortized cost of a financial asset is the amount at which the financial asset is measured at initial recognition minus the principal repayments, plus the cumulative amortization using the effective interest method of any difference between that initial amount and the maturity amount, adjusted for any loss allowance. Interest income is recognized using the effect interest method, and is recognized in Interest and other income, on the consolidated statements of operations and comprehensive income (loss) The Company financial assets at amortized costs include its cash, amounts receivable not related to sales of concentrate, investments (short-term), and reclamation bonds. Fair value through other comprehensive income (“FVTOCI”) Financial assets that are held within a business model whose objective is to hold financial assets in order to both collect contractual cash flows and selling financial assets, and that the contractual terms of the financial assets give rise on specified date to cash flows that are solely payments of principal and interest on the principal amount outstanding Upon initial recognition of equity securities, the Company may make an irrevocable election (on an instrument-by-instrument basis) to designate its equity securities that would otherwise be measured at FVTPL to present subsequent changes in fair value in other comprehensive income. Designation at FVTOCI is not permitted if the equity investment is held for trading or if it is contingent consideration recognized by an acquirer in a business combination. Investments in equity instruments at FVTOCI are initially measured 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 OCI. The cumulative gain or loss is not reclassified to profit or loss on disposal of the instrument; instead, it is transferred to retained earnings. The Company currently has no financial assets designated as FVTOCI. Fair value through profit or loss (“FVTPL”) By default, all other financial assets are measured subsequently at FVTPL, which includes amounts receivable from concentrate sales. Classification – financial liabilities Financial liabilities that are not contingent consideration of an acquirer in a business combination, held for trading or designated as at FVTPL, are measured at amortized cost using the effective interest method. Financial liabilities at amortized cost include accounts payable, amounts due to related parties, term facility, equipment loans, and finance lease obligations. Financial liabilities classified FVTPL include financial liabilities held for trading and financial liabilities designated upon initial recognition as FVTPL. Fair value changes on financial liabilities classified as FVTPL are recognized in the consolidated statements of operations. The Company has classified share purchase warrants with an exercise price in US dollars (see Note 16) as financial liabilities at FVTPL. As these warrants are exercised, the fair value of the recorded warrant liability on date of exercise is included in share capital along with the proceeds from the exercise. If these warrants expire, the related decrease in warrant liability is recognized in the consolidated statements of operations. The Company has no hedging arrangements and does not apply hedge accounting. Impairment The Company recognizes a loss allowance for expected credit losses on its financial assets when necessary. The amount of expected credit losses is updated at each reporting period to reflect changes in credit risk since initial recognition of the respective financial instruments. |
Share capital | a) Common shares Common shares are classified as equity. Transaction costs directly attributable to the issuance of common shares and equity warrants are recognized as a deduction from equity, net of any tax effects. Transaction costs directly attributable to derivative warrants are charged to operations as a finance cost. b) Repurchase of share capital (treasury shares) When share capital recognized as equity is repurchased, the amount of the consideration paid, which includes directly attributable costs, net of any tax effects, is recognized as a deduction from equity. Repurchased shares are classified as treasury shares and are presented as a deduction from total equity. When treasury shares are sold or reissued subsequently, the amount received is recognized as an increase in equity, and the resulting surplus or deficit on the transaction is transferred to accumulated deficit. |
Share-based payment transactions | The Company’s share option plan and restricted share unit (“RSU”) plan allows directors, officers, employees, and consultants to acquire common shares of the Company. The fair value of options granted is measured at fair value at the grant date based on the market value of the Company’s common shares on that date. The fair value of equity-settled RSUs is measured at the grant date based on the market value of the Company’s common shares on that date, and each tranche is recognized using the graded vesting method over the period during which the RSUs vest. At each financial position reporting date, the amount recognized as an expense is adjusted to reflect the actual number of RSUs that are expected to vest. All options and RSUs are recognized in the consolidated statements of operations and comprehensive income (loss) as an expense or in the consolidated statements of financial position as exploration and evaluation assets over the vesting period with a corresponding increase in equity reserves in the consolidated statements of financial position. |
Reclamation and other provisions | Provisions are recognized where a legal or constructive obligation has been incurred as a result of past events, it is probable that an outflow of resources embodying economic benefit will be required to settle the obligation, and a reliable estimate of the amount of the obligation can be made. If material, provisions are measured at the present value of the expenditures expected to be required to settle the obligation. The increase in any provision due to the passage of time is recognized as accretion expense. The Company records the present value of estimated costs of legal and constructive obligations required to restore properties in the period in which the obligation is incurred. The nature of these restoration activities includes dismantling and removing structures, rehabilitating mines and restoration, reclamation, and re-vegetation of affected areas. The fair value of the liability for a rehabilitation provision is recorded when it is incurred. When the liability is initially recognized, the present value of the estimated cost is capitalized by increasing the carrying amount of the related mining property or exploration and evaluation asset. Over time, the discounted liability is increased for the change in present value based on the discount rates that reflect current market assessments and the risks specific to the liability, which is accreted over time through periodic charges to income or loss. A revision in estimates or new disturbance will result in an adjustment to the provision with an offsetting adjustment to the mineral property or the exploration and evaluation asset. Additional disturbances, changes in costs, or changes in assumptions are recognized as adjustments to the corresponding assets and reclamation liabilities when they occur. |
Earnings per share | The Company presents basic and diluted earnings per share data for its common shares, calculated by dividing the earnings attributable to common shareholders of the Company by the weighted average number of common shares outstanding during the year. Diluted earnings per share is determined by adjusting the earnings attributable to common shareholders and the weighted average number of common shares outstanding for the effects of all potentially dilutive common shares. |
Income taxes | Income taxes in the years presented are comprised of current and deferred tax. Income tax is recognized in profit or loss except to the extent that it relates to items recognized directly in equity, in which case it is recognized as equity. Deferred tax is recognized using the statement of financial position asset and liability method, which provides for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The amount of deferred tax recognized is based on the expected manner of realization or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at the consolidated statement of financial position date. A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which the asset can be utilized. Deferred tax assets and liabilities are not recognized if the temporary differences arise from the initial recognition of goodwill or an asset or liability in a transaction other than a business combination that affects neither accounting profit nor taxable profit. |
BASIS OF PRESENTATION (Tables)
BASIS OF PRESENTATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Basis Of Presentation | |
Disclosure of detailed information about the accounts of the Company and its Canadian and Mexican subsidiaries | Subsidiary Ownership Interest Jurisdiction Nature of Operations Oniva Silver and Gold Mines S.A. de C.V. 100% Mexico Mexican administration Nueva Vizcaya Mining, S.A. de C.V. 100% Mexico Mexican administration Promotora Avino, S.A. de C.V. (“Promotora”) 79.09% Mexico Holding company Compañía Minera Mexicana de Avino, S.A. de C.V. (“Avino Mexico”) 98.45% direct 1.22% indirect (Promotora) 99.67% effective Mexico Mining and exploration Bralorne Gold Mines Ltd. 100% Canada Mining and exploration |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Significant Accounting Policies | |
Schedule of consolidated statement of financial position | As Previously Reported January 1, 2017 Adjustment As Adjusted January 1, 2017 ASSETS Total current assets $ 35,128 $ - $ 35,128 Plant, equipment and mining properties 27,739 337 28,076 Other long-term assets 30,927 - 30,927 Total assets $ 93,794 $ 337 $ 94,131 LIABILITIES Total liabilities $ 32,337 $ - $ 32,337 EQUITY Accumulated deficit (21,875 ) 337 (21,538 ) Other equity 83,332 - 83,332 Total equity 61,457 337 61,794 Total liabilities and equity $ 93,794 $ 337 $ 94,131 As Previously Reported December 31, 2017 Adjustment As Adjusted December 31, 2017 ASSETS Total current assets $ 26,591 $ - $ 26,591 Plant, equipment and mining properties 31,952 206 32,158 Other long-term assets 44,086 - 44,086 Total assets $ 102,629 $ 206 $ 102,835 LIABILITIES Total liabilities $ 33,833 $ - $ 33,833 EQUITY Accumulated deficit (19,083 ) 206 (18,877 ) Other equity 87,879 - 87,879 Total equity 68,796 206 69,002 Total liabilities and equity $ 102,629 $ 206 $ 102,835 |
Schedule of consolidated statements of operations and comprehensive income | As Previously Reported 2016 Adjustment As Adjusted 2016 Revenue from mining operations $ 30,105 $ 4,587 $ 34,692 Cost of sales 19,161 3,800 22,961 Mine operating income 10,944 787 11,731 Operating expenses and other items 5,276 - 5,276 Net income before income taxes 5,668 787 6,455 Income taxes 4,164 275 4,439 Net income 1,504 512 2,016 Earnings per share Basic $ 0.04 $ 0.01 $ 0.05 Diluted $ 0.03 $ 0.02 $ 0.05 As Previously Reported 2017 Adjustment As Adjusted 2017 Revenue from mining operations $ 33,359 $ - $ 33,359 Cost of sales 21,975 131 22,106 Mine operating income 11,384 (131 ) 11,253 Operating expenses and other items 5,960 - 5,960 Net income before income taxes 5,424 (131 ) 5,293 Income taxes 2,771 - 2,771 Net income 2,653 (131 ) 2,522 Earnings per share Basic $ 0.05 $ 0.00 $ 0.05 Diluted $ 0.05 $ 0.00 $ 0.05 |
Schedule of consolidated statements of cash flows | As Previously Reported 2016 Adjustment As Adjusted 2016 Cash generated by (used in) Operating Activities Net income $ 1,504 $ 512 $ 2,016 Adjustments for non-cash items: Depreciation and depletion 1,341 572 1,913 Other changes in operating activities 1,992 - 1,992 Total before changes in non-cash working capital items 4,837 1,084 5,921 Net change in non-cash working capital items (1,098 ) - (1,098 ) Total cash generated by operating activities 3,739 1,084 4,823 Financing Activities Total cash generated by financing activities 20,006 - 20,006 Investing Activities Exploration and evaluation expenditures (8,313 ) 3,503 (4,810 ) Recovery of exploration costs from concentrate proceeds 4,587 (4,587 ) - Other changes in investing activities (13,683 ) - (13,683 ) Total cash used in investing activities (17,409 ) (1,084 ) (18,493 ) Change in cash and effect of exchange rates 6,336 - 6,336 Effect of exchange rates 43 - 43 Cash, Beginning 5,401 - 5,401 Cash, Ending $ 11,780 $ - $ 11,780 As Previously Reported 2017 Adjustment As Adjusted 2017 Cash generated by (used in) Operating Activities Net income $ 2,653 $ (131 ) $ 2,522 Adjustments for non-cash items: Depreciation and depletion 2,572 131 2,703 Other changes in operating activities 1,685 - 1,685 Total before changes in non-cash working capital items 6,910 - 6,910 Net change in non-cash working capital items (9,077 ) - (9,077 ) Total cash used in operating activities (2,167 ) - (2,167 ) Financing Activities Total cash used in financing activities (3,055 ) - (3,055 ) Investing Activities Total cash used in investing activities (3,135 ) - (3,135 ) Change in cash (8,357 ) - (8,357 ) Effect of exchange rates (3 ) - (3 ) Cash, Beginning 11,780 - 11,780 Cash, Ending $ 3,420 $ - $ 3,420 |
Summary of annual rates of depreciation on plant and equipment | Office equipment, furniture, and fixtures 20% declining balance Computer equipment 30% declining balance Mine machinery and transportation equipment 20% declining balance Mill machinery and processing equipment 5 - 20 years straight line Buildings 5 - 20 years straight line |
TAXES RECOVERABLE (Tables)
TAXES RECOVERABLE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Taxes Recoverable | |
Schdule of taxes recoverable | December 31, 2018 December 31, 2017 January 1, 2017 VAT recoverable $ 3,144 $ 5,779 $ 3,376 GST recoverable 82 105 153 Income taxes recoverable 2,117 485 - $ 5,343 $ 6,369 $ 3,529 |
INVENTORY (Tables)
INVENTORY (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Tables Abstract | |
Schdule of Inventory | December 31, 2018 December 31, 2017 January 1, 2017 Process material stockpiles $ 4,486 $ 3,566 $ 2,605 Concentrate inventory 3,095 3,437 1,896 Materials and supplies 1,650 2,099 1,303 $ 9,231 $ 9,102 $ 5,804 |
EXPLORATION AND EVALUATION ASSE
EXPLORATION AND EVALUATION ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Exploration And Evaluation Assets | |
Schdule of Exploration and Evaluation Assets | Durango, Mexico British Columbia & Yukon, Canada Total Balance, January 1, 2017 $ 7,979 $ 22,813 $ 30,792 Costs incurred during 2017: Mine and camp costs - 4,301 4,301 Provision for reclamation - 3,762 3,762 Effect of movements in exchange rates 555 1,604 2,159 Drilling and exploration 418 348 766 Depreciation of plant and equipment - 716 716 Interest and financing costs - 377 377 Geological and related services - 264 264 Water treatment and tailing storage facility costs - 224 224 Assessments and taxes 82 97 179 Mineral exploration tax credit - (202 ) (202 ) Balance, December 31, 2017 $ 9,034 $ 34,304 $ 43,338 Costs incurred during 2018: Mine and camp costs - 3,143 3,143 Drilling and exploration 346 1,142 1,488 Depreciation of plant and equipment - 540 540 Interest and other costs - 414 414 Geological and related services - 205 205 Water treatment and tailing storage facility costs - 53 53 Assessments and taxes 86 29 115 Assays - 13 13 Effect of movements in exchange rates 226 (2,754 ) (2,528 ) Balance, December 31, 2018 $ 9,692 $ 37,089 $ 46,781 |
PLANT, EQUIPMENT AND MINING PRO
PLANT, EQUIPMENT AND MINING PROPERTIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Plant Equipment And Mining Properties Tables Abstract | |
Schedule of Plant, Equipment and Mining Properties | Mining properties Office equipment, furniture, and fixtures Computer equipment Mine machinery and transportation equipment Mill machinery and processing equipment Buildings Total $ $ $ $ $ $ $ COST Balance at January 1, 2017 10,990 83 253 14,927 7,638 2,645 36,536 Additions 1,370 49 27 1,271 2,137 2,949 7,803 Effect of movements in exchange rates 122 1 3 179 91 31 427 Balance at December 31, 2017 12,482 133 283 16,377 9,866 5,625 44,766 Additions 588 17 77 990 7,901 1,089 10,662 Transfers - - - - (45 ) 45 - Disposals - - - - (33 ) - (33 ) Effect of movements in exchange rates (108 ) (1 ) (2 ) (110 ) (86 ) (49 ) (356 ) Balance at December 31, 2018 12,962 149 358 17,257 17,603 6,710 55,039 ACCUMULATED DEPLETION AND DEPRECIATION Balance at January 1, 2017 2,748 36 116 4,206 846 508 8,460 Additions 1,817 12 27 1,827 283 87 4,053 Effect of movements in exchange rates 27 - 1 51 10 6 95 Balance at December 31, 2017 4,592 48 144 6,084 1,139 601 12,608 Additions 1,549 17 32 799 1,287 112 3,796 Effect of movements in exchange rates (39 ) - (1 ) (53 ) (10 ) (5 ) (108 ) Balance at December 31, 2018 6,102 65 175 6,830 2,416 708 16,296 NET BOOK VALUE At December 31, 2018 6,860 84 183 10,427 15,187 6,002 38,743 At December 31, 2017 7,890 85 139 10,293 8,727 5,024 32,158 At January 1, 2017 8,242 47 137 10,721 6,792 2,137 28,076 |
RELATED PARTY TRANSACTIONS AND
RELATED PARTY TRANSACTIONS AND BALANCES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions And Balances Tables Abstract | |
Schedule of Related Party Transactions and Balances | 2018 2017 2016 Salaries, benefits, and consulting fees $ 956 $ 860 $ 1,277 Share-based payments 531 1,718 891 $ 1,487 $ 2,578 $ 2,168 |
Schedule of Due to Related Parties | December 31, 2018 December 31, 2017 January 1, 2017 Oniva International Services Corp. $ 107 $ 139 $ 127 Directors 47 42 45 Jasman Yee & Associates, Inc. 3 6 4 Intermark Capital Corp. - - 20 Wear Wolfin Designs Ltd. - - 3 $ 157 $ 187 $ 199 |
Schedule of Related Party Transactions with Oniva | 2018 2017 2016 Salaries and benefits $ 594 $ 450 $ 297 Office and miscellaneous 560 567 507 Exploration and evaluation assets 353 352 248 $ 1,507 $ 1,369 $ 1,052 |
TERM FACILITY (Tables)
TERM FACILITY (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Term Facility Tables Abstract | |
TERM FACILITY | December 31, December 31, January 1, 2018 2017 2017 Balance at beginning of the period $ 8,667 $ 9,334 $ 10,000 Repayments (2,000 ) (667 ) (666 ) Fair value adjustment for modification 234 - - Balance at end of the period 6,901 8,667 9,334 Less: current portion (1,017 ) (4,000 ) (4,666 ) Non-current portion $ 5,884 $ 4,667 $ 4,667 |
EQUIPMENT LOANS (Tables)
EQUIPMENT LOANS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equipment Loans | |
Schedule of Equipment Loans | December 31, December 31, January 1, 2018 2017 2017 Not later than one year $ 550 $ 886 $ 1,060 Later than one year and not later than five years 428 410 1,238 Less: Future interest charges (50 ) (50 ) (130 ) Present value of loan payments 928 1,246 2,168 Less: current portion (517 ) (848 ) (977 ) Non-current portion $ 411 $ 398 $ 1,191 |
FINANCE LEASE OBLIGATIONS (Tabl
FINANCE LEASE OBLIGATIONS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Finance Lease Obligations | |
Schedule of Finance Lease Obligations | December 31, December 31, January 1, 2018 2017 2017 Not later than one year $ 943 $ 1,204 $ 1,527 Later than one year and not later than five years 947 1,295 1,482 Less: Future interest charges (71 ) (150 ) (197 ) Present value of lease payments 1,819 2,349 2,812 Less: current portion (950 ) (1,116 ) (1,435 ) Non-current portion $ 869 $ 1,233 $ 1,377 |
WARRANT LIABILITY (Tables)
WARRANT LIABILITY (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Warrant Liability | |
Schedule of Change in Warrant Liability | December 31, 2018 December 31, 2017 January 1, 2017 Balance at beginning of the period $ 1,161 $ 1,630 $ - Warrants issued during the period 2,296 - 1,638 Fair value adjustment (1,304 ) (563 ) (8 ) Effect of movement in exchange rates (144 ) 94 - Balance at end of the period $ 2,009 $ 1,161 $ 1,630 Less: current portion - - - Non-current portion $ 2,009 $ 1,161 $ 1,630 Continuity of warrants during the periods is as follows: Underlying Shares Weighted Average Exercise Price Warrants outstanding and exercisable, January 1 and December 31, 2017 3,602,215 $ 1.99 Issued 7,175,846 $ 0.80 Warrants outstanding and exercisable, December 31, 2018 10,778,061 $ 1.20 |
Schedule of Warrants Outstanding and Exercisable | Derivative Warrants,Outstanding and Exercisable Expiry Date Exercise Price per Share December 31, 2018 December 31, 2017 January 1, 2017 March 14, 2019 $ 1.00 40,000 40,000 40,000 November 28, 2019 $ 2.00 3,562,215 3,562,215 3,562,215 September 25, 2023 $ 0.80 7,175,846 - - 10,778,061 3,602,215 3,602,215 |
Schedule of Fair Value of Warrant Liability | December 31, 2018 December 31, 2017 January 1, 2017 Weighted average assumptions: Risk-free interest rate 1.88 % 1.66 % 0.67 % Expected dividend yield 0 % 0 % 0 % Expected warrant life (years) 3.46 1.90 2.29 Expected stock price volatility 61.47 % 65.69 % 72.66 % Weighted average fair value $ 0.19 $ 0.32 $ 0.35 |
RECLAMATION PROVISION (Tables)
RECLAMATION PROVISION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Reclamation Provision | |
Schedule of Changes in Reclamation Provision | December 31, 2018 December 31, 2017 Balance at beginning of the period $ 11,638 $ 6,963 Changes in estimates (437 ) 3,900 Unwinding of discount 378 248 Effect of movements in exchange rates (780 ) 527 Balance at end of the period $ 10,799 $ 11,638 Less: current portion (296 ) - Non-current portion $ 10,503 $ 11,638 |
SHARE CAPITAL AND SHARE-BASED P
SHARE CAPITAL AND SHARE-BASED PAYMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Share Capital And Sharebased Payments Tables Abstract | |
Schedule of Stock Options | Underlying Shares Weighted Average Exercise Price (C$) Stock options outstanding and exercisable, January 1, 2017 1,978,500 $ 2.24 Granted 1,475,000 $ 1.98 Cancelled / Forfeited (122,500 ) $ 2.54 Exercised (20,000 ) $ 1.62 Stock options outstanding and exercisable, December 31, 2017 3,311,000 $ 2.12 Granted 497,500 $ 1.30 Cancelled / Forfeited (497,500 ) $ 2.14 Expired (306,000 ) $ 1.61 Exercised (87,500 ) $ 1.61 Stock options outstanding, December 31, 2018 2,917,500 $ 2.04 Stock options exercisable, December 31, 2018 2,576,250 $ 2.14 |
Schedule of Stock Options Outsanding and Exercisable | Outstanding Exercisable Expiry Date Price (C$) Options Outstanding Weighted Average Remaining Contractual Life (Years) Options Outstanding Weighted Average Remaining Contractual Life (Years) September 19, 2019 $ 1.90 570,000 0.72 570,000 0.72 December 22, 2019 $ 1.90 30,000 0.98 30,000 0.98 September 2, 2021 $ 2.95 552,500 2.67 552,500 2.67 September 20, 2022 $ 1.98 1,295,000 3.72 1,295,000 3.72 October 6, 2022 $ 1.98 15,000 3.77 15,000 3.77 August 28, 2023 $ 1.30 455,000 4.66 113,750 4.66 2,917,500 3.06 2,576,250 2.84 |
Schedule of fair value of options granted | 2018 2017 2016 Weighted average assumptions: Risk-free interest rate 2.25 % 1.80 % 0.69 % Expected dividend yield 0 % 0 % 0 % Expected option life (years) 5.00 5.00 5.00 Expected stock price volatility 60.26 % 68.24 % 65.13 % Weighted average fair value at grant date $ C0.53 $ C1.14 $ C1.60 |
Schedule of Basic Earnings Per Share and Diluted Earnings Per Share | 2018 2017 (Note 3) 2016 (Note 3) Net income (loss) for the period $ 1,626 $ 2,522 $ 2,016 Basic weighted average number of shares outstanding 56,851,626 52,523,454 42,695,999 Effect of dilutive share options, warrants, and RSUs 3,149,011 796,555 1,095,452 Diluted weighted average number of shares outstanding 60,000,637 53,320,009 43,791,451 Basic earnings per share $ 0.03 $ 0.05 $ 0.05 Diluted earnings per share $ 0.03 $ 0.05 $ 0.05 |
REVENUE AND COST OF SALES (Tabl
REVENUE AND COST OF SALES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue And Cost Of Sales | |
Schedule of Revenue | 2018 2017 (Note 3) 2016 (Note 3) Concentrate sales $ 34,551 $ 33,327 $ 34,925 Provisional pricing adjustments (435 ) 32 (233 ) $ 34,116 $ 33,359 $ 34,692 |
Schedule of Cost of Sales | 2018 2017 (Note 3) 2016 (Note 3) Production costs $ 24,619 $ 19,418 $ 21,060 Depreciation and depletion 3,231 2,688 1,901 $ 27,850 $ 22,106 $ 22,961 |
GENERAL AND ADMINISTRATIVE EXPE
GENERAL AND ADMINISTRATIVE EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
General And Administrative Expenses | |
Schedule of General and Administrative Expenses | 2018 2017 2016 Salaries and benefits $ 1,257 $ 1,196 $ 1,159 Office and miscellaneous 300 464 925 Management and consulting fees 354 443 495 Investor relations 402 366 258 Travel and promotion 226 323 359 Professional fees 529 247 172 Directors fees 161 158 166 Regulatory and compliance fees 311 101 243 Depreciation 25 15 12 $ 3,565 $ 3,313 $ 3,789 |
COMMITMENTS (Tables)
COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments | |
Schedule of Commitments | December 31, 2018 December 31, 2017 January 1, 2017 Not later than one year $ 3,092 $ 300 $ 1,540 Later than one year and not later than five years 74 251 557 Later than five years 10 15 20 $ 3,176 $ 566 $ 2,117 |
SUPPLEMENTARY CASH FLOW INFORMA
SUPPLEMENTARY CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Supplementary Cash Flow Information | |
Schedule of Supplementary Cash Flow Information | 2018 2017 2016 Net change in non-cash working capital items: Deferred revenues $ 573 $ - $ - Accounts payable and accrued liabilities 2,329 (136 ) 708 Prepaid expenses and other assets 981 (1,672 ) (115 ) Amounts receivable 543 (1,585 ) (355 ) Taxes payable (358 ) (292 ) (14 ) Amounts due to related parties (44 ) 1 42 Taxes recoverable 1,017 (2,828 ) (1,323 ) Inventory (42 ) (2,565 ) (41 ) $ 4,999 $ (9,077 ) $ (1,098 ) 2018 2017 2016 Interest paid $ 959 $ 445 $ 471 Taxes paid $ 4,991 $ 5,765 $ 3,136 Equipment acquired under finance leases and equipment loans $ 1,771 $ 1,228 $ 3,452 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Financial Instruments Tables Abstract | |
Schedule of Contractual Obligations and Commitments | Total Less Than 1 Year 1-5 years More Than 5 Years Accounts payable and accrued liabilities $ 5,885 $ 5,885 $ - $ - Due to related parties 157 157 - - Minimum rental and lease payments 246 162 74 10 Term facility 7,669 1,432 6,237 - Equipment loans 978 550 428 - Finance lease obligations 1,889 942 947 - Total $ 16,824 $ 9,128 $ 7,686 $ 10 |
Schedule of Foreign Currency Risk | December 31, 2018 December 31, 2017 MXN CDN MXN CDN Cash $ 8,378 $ 2,421 $ 9,504 $ 321 Long-term investments - 14 - 42 Reclamation bonds - 146 - 896 Amounts receivable - 114 - 132 Accounts payable and accrued liabilities (85,951 ) (891 ) (27,482 ) (603 ) Due to related parties - (215 ) - (225 ) Equipment loans - (301 ) - (782 ) Finance lease obligations (13,907 ) (533 ) (751 ) (1,002 ) Net exposure (91,480 ) 755 (18,729 ) (1,221 ) US dollar equivalent $ (4,656 ) $ 554 $ (949 ) $ (974 ) |
Schedule of Fair Value On Recurring Basis | Level 1 Level 2 Level 3 Financial assets Cash $ 3,252 $ - $ - Amounts receivable - 4,091 - Long-term investments 10 - - Financial liabilities Warrant liability - - (2,009 ) Total financial assets and liabilities $ 3,262 $ 4,091 $ (2,009 ) |
CAPITAL MANAGEMENT (Tables)
CAPITAL MANAGEMENT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Capital Management Tables Abstract | |
Schedule of term facility | December 31, December 31, January 1, 2018 2017 2017 Equity $ 75,168 $ 69,002 $ 61,794 Term Facility 6,901 8,667 9,333 Finance Lease Obligations 1,819 2,349 2,812 Equipment Loans 928 1,246 2,168 $ 84,816 $ 81,264 $ 76,107 |
SEGMENTED INFORMATION (Tables)
SEGMENTED INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segmented Information Tables Abstract | |
Schedule of Condensed Consolidated Interim Statements of Operations | 2018 2017 2016 Silver $ 17,259 $ 20,159 $ 23,641 Copper 12,996 8,227 9,593 Gold 9,866 10,131 7,508 Penalties, treatment costs and refining charges (6,005 ) (5,158 ) (6,050 ) Total revenue from mining operations $ 34,116 $ 33,359 $ 34,692 |
Schedule of revenues from customers | 2018 2017 2016 Customer #1 $ 23,314 $ 24,845 $ 23,833 Customer #2 1,547 7,452 6,319 Customer #3 344 - - Customer #4 321 1,062 4,540 Customer #5 519 - - Customer #6 8,071 - - Total revenue from mining operations $ 34,116 $ 33,359 $ 34,692 |
Schedule of Geographical Information of company’s non-current assets | December 31, 2018 December 31, 2017 January 1, 2017 Exploration and evaluation assets - Mexico $ 9,692 $ 9,034 $ 7,979 Exploration and evaluation assets - Canada 37,089 34,304 22,813 Total exploration and evaluation assets $ 46,781 $ 43,338 $ 30,792 December 31, 2018 December 31, 2017 January 1, 2017 Plant, equipment, and mining properties - Mexico $ 36,484 $ 28,834 $ 24,578 Plant, equipment, and mining properties - Canada 2,259 3,324 3,498 Total plant, equipment, and mining properties $ 38,743 $ 32,158 $ 28,076 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Taxes Tables Abstract | |
Schedule of Income tax expense | 2018 2017 2016 Current income tax expense $ 1,052 $ 2,911 $ 3,434 Deferred income tax expense (recovery) (645 ) (140 ) 1,005 Total income tax expense $ 407 $ 2,771 $ 4,439 |
Schedule of reconciliation of income taxes | 2018 2017 2016 (Note 3) (Note 3) Net income before income taxes $ 2,033 $ 5,293 $ 6,455 Combined statutory tax rate 27.00 % 26.00 % 26.00 % Income tax expense at the Canadian statutory rate 549 1,376 1,678 Reconciling items: Effect of difference in foreign tax rates 48 285 307 Non-deductible/non-taxable items (121 ) 602 700 Change in unrecognized deductible temporary differences (257 ) 1,086 1,408 Impact of foreign exchange 915 (491 ) 778 Special mining duties 117 511 780 Impact of change of tax rates - (322 ) - Revisions to estimates (368 ) (248 ) (1,095 ) Share issue costs (231 ) - (379 ) Other items (245 ) (106 ) 262 Income tax expense recognized in the year $ 407 $ 2,771 $ 4,439 |
Deferred income tax assets and liabilities | December 31, December 31, January 1, 2018 2017 2017 Deferred income tax assets $ 4,654 $ 4,888 $ 2,831 Deferred income tax liabilities (8,557 ) (9,436 ) (7,519 ) $ (3,903 ) $ (4,548 ) $ (4,688 ) The approximate tax effects of each type of temporary difference that gives rise to potential deferred income tax assets and liabilities are as follows: December 31, 2018 December 31, 2017 January 1, 2017 Reclamation provision $ 491 $ 594 $ 503 Non-capital losses 3,104 3,197 - Other deductible temporary differences 1,059 1,097 2,328 Inventory (94 ) (230 ) (101 ) Exploration and evaluation assets (6,378 ) (6,464 ) (4,265 ) Plant, equipment and mining properties (2,085 ) (2,742 ) (3,153 ) Net deferred income tax liabilities $ (3,903 ) $ (4,548 ) $ (4,688 ) |
Unrecognized deductible temporary differences | December 31, 2017 December 31, 2016 January 1, 2016 Tax losses carried forward $ 13,790 $ 13,973 $ 17,350 Share issue costs 1,263 1,100 1,466 Plant, equipment and mining properties 6,096 6,198 3,873 Exploration and evaluation assets 1,207 1,330 1,257 Investments 44 198 189 Reclamation provision and other 9,489 10,054 5,603 Unrecognized deductible temporary differences $ 31,889 $ 32,853 $ 29,739 |
NATURE OF OPERATIONS (Details N
NATURE OF OPERATIONS (Details Narrative) | 12 Months Ended |
Dec. 31, 2018 | |
Nature Of Operations | |
Country of incorporation | British Columbia, Canada |
Year of incorporation | 1968 |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Oniva Silver and Gold Mines S.A. de C.V (Member) | |
Disclosure of detailed information about business combination [line items] | |
Subsidiary | Oniva Silver and Gold Mines S.A. de C.V. |
Ownership Interest | 100.00% |
Jurisdiction | Mexico |
Nature of Operations | Mexican administration |
Nueva Vizcaya Mining, S.A. de C.V. (Member) | |
Disclosure of detailed information about business combination [line items] | |
Subsidiary | Nueva Vizcaya Mining, S.A. de C.V. |
Ownership Interest | 100.00% |
Jurisdiction | Mexico |
Nature of Operations | Mexican administration |
Promotora Avino, S.A. de C.V. (Member) | |
Disclosure of detailed information about business combination [line items] | |
Subsidiary | Promotora Avino, S.A. de C.V. (“Promotora”) |
Ownership Interest | 79.09% |
Jurisdiction | Mexico |
Nature of Operations | Holding company |
Compañía Minera Mexicana de Avino, S.A. de C.V. Direct (Member) | |
Disclosure of detailed information about business combination [line items] | |
Subsidiary | Compania Minera Mexicana de Avino, S.A. de C.V. (“Avino Mexico”) |
Ownership Interest | 98.45% |
Jurisdiction | Mexico |
Nature of Operations | Mining and exploration |
Compañía Minera Mexicana de Avino, S.A. de C.V. Indirect (Member) | |
Disclosure of detailed information about business combination [line items] | |
Subsidiary | Compania Minera Mexicana de Avino, S.A. de C.V. (“Avino Mexico”) |
Ownership Interest | 1.22% |
Jurisdiction | Mexico |
Nature of Operations | Mining and exploration |
Compañía Minera Mexicana de Avino, S.A. de C.V. Effective (Member) | |
Disclosure of detailed information about business combination [line items] | |
Subsidiary | Compania Minera Mexicana de Avino, S.A. de C.V. (“Avino Mexico”) |
Ownership Interest | 99.67% |
Jurisdiction | Mexico |
Nature of Operations | Mining and exploration |
Bralorne Gold Mines Ltd (Member) | |
Disclosure of detailed information about business combination [line items] | |
Subsidiary | Bralorne Gold Mines Ltd. |
Ownership Interest | 100.00% |
Jurisdiction | Canada |
Nature of Operations | Mining and exploration |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||||
Total current assets | $ 22,947 | $ 26,591 | $ 35,128 | |
Plant, equipment and mining properties | 38,743 | 32,158 | 28,076 | |
Other long-term assets | 10 | 34 | 27 | |
Total assets | 108,588 | 102,835 | 94,131 | |
LIABILITIES | ||||
Total liabilities | 9,841 | 10,188 | 11,821 | |
EQUITY | ||||
Accumulated deficit | (16,505) | (18,877) | (21,538) | |
Total equity | 75,168 | 69,002 | 61,794 | $ 37,353 |
Total liabilities and equity | $ 108,588 | 102,835 | 94,131 | |
As Previously Reported [Member] | ||||
ASSETS | ||||
Total current assets | 26,591 | 35,128 | ||
Plant, equipment and mining properties | 31,952 | 27,739 | ||
Other long-term assets | 44,086 | 30,927 | ||
Total assets | 102,629 | 93,794 | ||
LIABILITIES | ||||
Total liabilities | 33,833 | 32,337 | ||
EQUITY | ||||
Accumulated deficit | (19,083) | (21,875) | ||
Other equity | 87,879 | 83,332 | ||
Total equity | 68,796 | 61,457 | ||
Total liabilities and equity | 102,629 | 93,794 | ||
Adjustment [Member] | ||||
ASSETS | ||||
Total current assets | ||||
Plant, equipment and mining properties | 206 | 337 | ||
Other long-term assets | ||||
Total assets | 206 | 337 | ||
LIABILITIES | ||||
Total liabilities | ||||
EQUITY | ||||
Accumulated deficit | 206 | 337 | ||
Other equity | ||||
Total equity | 206 | 337 | ||
Total liabilities and equity | 206 | 337 | ||
As Adjusted [Member] | ||||
ASSETS | ||||
Total current assets | 26,591 | 35,128 | ||
Plant, equipment and mining properties | 32,158 | 28,076 | ||
Other long-term assets | 44,086 | 30,927 | ||
Total assets | 102,835 | 94,131 | ||
LIABILITIES | ||||
Total liabilities | 33,833 | 32,337 | ||
EQUITY | ||||
Accumulated deficit | (18,877) | (21,538) | ||
Other equity | 87,879 | 83,332 | ||
Total equity | 69,002 | 61,794 | ||
Total liabilities and equity | $ 102,835 | $ 94,131 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Revenue from mining operations | $ 34,116 | $ 33,359 | $ 34,692 |
Cost of sales | 27,850 | 22,106 | 22,961 |
Mine operating income | 6,266 | 11,253 | 11,731 |
Operating expenses and other items | 300 | 464 | 925 |
Net income before income taxes | 2,033 | 5,293 | 6,455 |
Income taxes | (407) | (2,771) | (4,439) |
Net income | $ 1,626 | $ 2,522 | $ 2,016 |
Earnings per share | |||
Basic | $ 0.03 | $ 0.05 | $ 0.05 |
Diluted | $ 0.03 | $ 0.05 | $ 0.05 |
As Previously Reported [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Revenue from mining operations | $ 33,359 | $ 30,105 | |
Cost of sales | 21,975 | 19,161 | |
Mine operating income | 11,384 | 10,944 | |
Operating expenses and other items | 5,960 | 5,276 | |
Net income before income taxes | 5,424 | 5,668 | |
Income taxes | 2,771 | 4,164 | |
Net income | $ 2,653 | $ 1,504 | |
Earnings per share | |||
Basic | $ 0.05 | $ 0.04 | |
Diluted | $ 0.05 | $ 0.03 | |
Adjustment [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Revenue from mining operations | $ 4,587 | ||
Cost of sales | 131 | 3,800 | |
Mine operating income | (131) | 787 | |
Operating expenses and other items | |||
Net income before income taxes | (131) | 787 | |
Income taxes | 275 | ||
Net income | $ (131) | $ 512 | |
Earnings per share | |||
Basic | $ 0 | $ 0.01 | |
Diluted | $ 0 | $ 0.02 | |
As Adjusted [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Revenue from mining operations | $ 33,359 | $ 34,692 | |
Cost of sales | 22,106 | 22,961 | |
Mine operating income | 11,253 | 11,731 | |
Operating expenses and other items | 5,960 | 5,276 | |
Net income before income taxes | 5,293 | 6,455 | |
Income taxes | 2,771 | 4,439 | |
Net income | $ 2,522 | $ 2,016 | |
Earnings per share | |||
Basic | $ 0.05 | $ 0.05 | |
Diluted | $ 0.05 | $ 0.05 |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash generated by (used in) Operating Activities | |||
Net income | $ 1,626 | $ 2,522 | $ 2,016 |
Adjustments for non-cash items: | |||
Depreciation and depletion | 3,256 | 2,703 | 1,913 |
Total before changes in non-cash working capital items | 4,225 | 6,910 | 5,921 |
Net change in non-cash working capital items | 4,999 | (9,077) | (1,098) |
Total cash generated by operating activities | 9,224 | (2,167) | 4,823 |
Financing Activities | |||
Total cash generated by financing activities | 3,855 | (3,055) | 20,006 |
Investing Activities | |||
Exploration and evaluation expenditures | (5,361) | (5,527) | (4,810) |
Total cash used in investing activities | (13,229) | (3,135) | (18,493) |
Change in cash and effect of exchange rates | (150) | (8,357) | 6,336 |
Effect of exchange rates | (18) | (3) | 43 |
Cash, Beginning | 3,420 | 11,780 | 5,401 |
Cash, Ending | 3,252 | 3,420 | 11,780 |
As Previously Reported [Member] | |||
Cash generated by (used in) Operating Activities | |||
Net income | 2,653 | 1,504 | |
Adjustments for non-cash items: | |||
Depreciation and depletion | 2,572 | 1,341 | |
Other changes in operating activities | 1,685 | 1,992 | |
Total before changes in non-cash working capital items | 6,910 | 4,837 | |
Net change in non-cash working capital items | (9,077) | (1,098) | |
Total cash generated by operating activities | (2,167) | 3,739 | |
Financing Activities | |||
Total cash generated by financing activities | (3,055) | 20,006 | |
Investing Activities | |||
Exploration and evaluation expenditures | (8,313) | ||
Recovery of exploration costs from concentrate proceeds | 4,587 | ||
Other changes in investing activities | (13,683) | ||
Total cash used in investing activities | (3,135) | (17,409) | |
Change in cash and effect of exchange rates | (8,357) | 6,336 | |
Effect of exchange rates | (3) | 43 | |
Cash, Beginning | 3,420 | 11,780 | 5,401 |
Cash, Ending | 3,420 | 11,780 | |
Adjustment [Member] | |||
Cash generated by (used in) Operating Activities | |||
Net income | (131) | 512 | |
Adjustments for non-cash items: | |||
Depreciation and depletion | 131 | 572 | |
Other changes in operating activities | |||
Total before changes in non-cash working capital items | 1,084 | ||
Net change in non-cash working capital items | |||
Total cash generated by operating activities | 1,084 | ||
Financing Activities | |||
Total cash generated by financing activities | |||
Investing Activities | |||
Exploration and evaluation expenditures | 3,503 | ||
Recovery of exploration costs from concentrate proceeds | (4,587) | ||
Other changes in investing activities | |||
Total cash used in investing activities | (1,084) | ||
Change in cash and effect of exchange rates | |||
Effect of exchange rates | |||
Cash, Beginning | |||
Cash, Ending | |||
As Adjusted [Member] | |||
Cash generated by (used in) Operating Activities | |||
Net income | 2,522 | 2,016 | |
Adjustments for non-cash items: | |||
Depreciation and depletion | 2,703 | 1,913 | |
Other changes in operating activities | 1,685 | 1,992 | |
Total before changes in non-cash working capital items | 6,910 | 5,921 | |
Net change in non-cash working capital items | (9,077) | (1,098) | |
Total cash generated by operating activities | (2,167) | 4,823 | |
Financing Activities | |||
Total cash generated by financing activities | (3,055) | 20,006 | |
Investing Activities | |||
Exploration and evaluation expenditures | (4,810) | ||
Recovery of exploration costs from concentrate proceeds | |||
Other changes in investing activities | (13,683) | ||
Total cash used in investing activities | (3,135) | (18,493) | |
Change in cash and effect of exchange rates | (8,357) | 6,336 | |
Effect of exchange rates | (3) | 43 | |
Cash, Beginning | $ 3,420 | 11,780 | 5,401 |
Cash, Ending | $ 3,420 | $ 11,780 |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES (Details 3) | 12 Months Ended |
Dec. 31, 2018 | |
Office equipment, furniture, and fixtures [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation rates and methods of plant and equipment | 20% declining balance |
Computer equipment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation rates and methods of plant and equipment | 30% declining balance |
Mine machinery and transportation equipment [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation rates and methods of plant and equipment | 20% declining balance |
Mill machinery and processing equipment [Member] | Bottom of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation rates and methods of plant and equipment | 5 years straight line |
Mill machinery and processing equipment [Member] | Top of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation rates and methods of plant and equipment | 20 years straight line |
Buildings [member] | Bottom of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation rates and methods of plant and equipment | 5 years straight line |
Buildings [member] | Top of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation rates and methods of plant and equipment | 20 years straight line |
SIGNIFICANT ACCOUNTING POLICI_7
SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
San Gonzalo Mine [Member] | |||
Disclosure of detailed information about business combination [line items] | |||
Estimated remaining life (in years) | 9 months 18 days | 9 months 18 days | 1 year 9 months 18 days |
Avino Mine [Member] | |||
Disclosure of detailed information about business combination [line items] | |||
Estimated remaining life (in years) | 9 years 6 months | 10 years 3 months 18 days | 11 years 3 months 18 days |
SHORT-TERM INVESTMENTS (Details
SHORT-TERM INVESTMENTS (Details Narrative) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jul. 31, 2015 |
Short-term Investments | ||||
Short-term investments | $ 1,000 | $ 10,000 | $ 10,000 |
TAXES RECOVERABLE (Details)
TAXES RECOVERABLE (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Taxes Recoverable | |||
VAT recoverable | $ 3,144 | $ 5,779 | $ 3,376 |
GST recoverable | 82 | 105 | 153 |
Income taxes recoverable | 2,117 | 485 | |
Total taxes recoverable | $ 5,343 | $ 6,369 | $ 3,529 |
INVENTORY (Details)
INVENTORY (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Classes of current inventories [abstract] | |||
Process material stockpiles | $ 4,486 | $ 3,566 | $ 2,605 |
Concentrate inventory | 3,095 | 3,437 | 1,896 |
Materials and supplies | 1,650 | 2,099 | 1,303 |
Inventories | $ 9,231 | $ 9,102 | $ 5,804 |
INVENTORY (Details Narrative)
INVENTORY (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Classes of current inventories [abstract] | |||
Cost of sales | $ 27,850 | $ 22,106 | $ 22,961 |
EXPLORATION AND EVALUATION AS_2
EXPLORATION AND EVALUATION ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Beginning balance | $ 43,338 | $ 30,792 |
Mine and camp costs | 3,143 | 4,301 |
Provision for reclamation | 3,762 | |
Effect of movements in exchange rates | 2,159 | |
Drilling and exploration | 1,488 | 766 |
Depreciation of plant and equipment | 540 | 716 |
Interest and financing costs | 414 | 377 |
Geological and related services | 205 | 264 |
Water treatment and tailing storage facility costs | 53 | 224 |
Assessments and taxes | 115 | 179 |
Mineral exploration tax credit | (202) | |
Assays | 13 | |
Effect of movements in exchange rates | (2,528) | |
Ending balance | 46,781 | 43,338 |
Durango, Mexico [Member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Beginning balance | 9,034 | 7,979 |
Mine and camp costs | ||
Provision for reclamation | ||
Effect of movements in exchange rates | 555 | |
Drilling and exploration | 346 | 418 |
Depreciation of plant and equipment | ||
Interest and financing costs | ||
Geological and related services | ||
Water treatment and tailing storage facility costs | ||
Assessments and taxes | 86 | 82 |
Mineral exploration tax credit | ||
Assays | ||
Effect of movements in exchange rates | 226 | |
Ending balance | 9,692 | 9,034 |
British Columbia & Yukon, Canada [Member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Beginning balance | 34,304 | 22,813 |
Mine and camp costs | 3,143 | 4,301 |
Provision for reclamation | 3,762 | |
Effect of movements in exchange rates | 1,604 | |
Drilling and exploration | 1,142 | 348 |
Depreciation of plant and equipment | 540 | 716 |
Interest and financing costs | 414 | 377 |
Geological and related services | 205 | 264 |
Water treatment and tailing storage facility costs | 53 | 224 |
Assessments and taxes | 29 | 97 |
Mineral exploration tax credit | (202) | |
Assays | 13 | |
Effect of movements in exchange rates | (2,754) | |
Ending balance | $ 37,089 | $ 34,304 |
EXPLORATION AND EVALUATION AS_3
EXPLORATION AND EVALUATION ASSETS (Details Narrative) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)haIntegershares | Dec. 31, 2017USD ($)haInteger | Dec. 31, 2012USD ($)shares | |
British Columbia, Canada [Member] | Lillooet Mining Division [Member] | Bralorne Mine [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Description of royalty terms | The BRX Property carries a 1% net smelter returns royalty to a maximum of C$0.25 million, and a 2.5% net smelter returns royalty | ||
Ownership percentage | 100.00% | ||
Terms of agreement | There is an underlying agreement on 12 crown grants in which the Company is required to pay 1.6385% of net smelter proceeds of production from the claims, and pay fifty cents Canadian (C$0.50) per ton of ore produced from these claims if the ore grade exceeds 0.75 ounces per ton gold | ||
Number of Mineral claims acquired | 9 | ||
Area of mineral claims acquired | ha | 2,114 | ||
British Columbia, Canada [Member] | Lillooet Mining Division [Member] | Bralorne Mine [Member] | Maximum [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net smelter returns royalty | $ | $ 250,000 | ||
British Columbia, Canada [Member] | Lillooet Mining Division [Member] | Minto and Olympic-Kelvin properties[Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Mineral claims property, description | The Company’s mineral claims in British Columbia encompass two additional properties, Minto and Olympic-Kelvin, each of which consists of 100% owned Crown-granted mineral claims located in the Lillooet Mining Division | ||
Durango, Mexico [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Number of mineral claims on lease | 4 | ||
Number of mineral claims owned by Avino Mexico | 42 | ||
Durango, Mexico [Member] | Unification La Platosa properties [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Number of exploitation concessions | 3 | ||
Description for exploration period | The Company has obtained the exclusive right to explore and mine the property for an initial period of 15 years, with the option to extend the agreement for another 5 years | ||
Exploration and Mining rights acquisition consideration transferred, shares issued | shares | 135,189 | ||
Exploration and Mining rights acquisition consideration transferred shares issued, value | $ | $ 250,000 | ||
Durango, Mexico [Member] | Unification La Platosa properties [Member] | Minerales [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Description of royalty terms | The Company has agreed to pay to Minerales a royalty equal to 3.5% of net smelter returns (“NSR”). In addition, after the start of production, if the minimum monthly processing rate of the mine facilities is less than 15,000 tonnes, then the Company must pay to Minerales a minimum royalty equal to the applicable NSR royalty based on the processing at a monthly rate of 15,000 tonnes | ||
Description for exclusive right acquisition under agreement | Minerales has also granted to the Company the exclusive right to purchase a 100% interest in the property at any time during the term of the agreement (or any renewal thereof), upon payment of $8 million within 15 days of the Company’s notice of election to acquire the property | ||
Exclusive rights acquisition, purchase price | $ | $ 8,000,000 | ||
Durango, Mexico [Member] | 4 Concessions [Member] | Santiago Papasquiaro property [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Number of exploitation concessions | 4 | ||
Area of exploitation concessions | ha | 2,552.6 | ||
Durango, Mexico [Member] | 4 Concessions [Member] | Avino mine area property [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Number of exploitation concessions | 4 | ||
Area of exploitation concessions | ha | 154.4 | ||
Durango, Mexico [Member] | 9 Concessions [Member] | Gomez Palacio property [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Number of exploitation concessions | 9 | ||
Area of exploitation concessions | ha | 2,549 | ||
Durango, Mexico [Member] | 1 Concessions [Member] | Santiago Papasquiaro property [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Number of exploitation concessions | 1 | ||
Area of exploitation concessions | ha | 602.9 | ||
Durango, Mexico [Member] | 1 Concessions [Member] | Avino mine area property [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Number of exploitation concessions | 1 | ||
Area of exploitation concessions | ha | 98.83 | ||
Durango, Mexico [Member] | 24 Concessions [Member] | Avino mine area property [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Number of exploitation concessions | 24 | ||
Area of exploitation concessions | ha | 1,284.7 | ||
Yukon, Canada [Member] | Mayo Mining Division [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Ownership percentage | 100.00% | ||
Yukon, Canada [Member] | Mayo Mining Division [Member] | Eagle property option agreement [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Terms of agreement | Subsequent to December 31, 2017, an option agreement was signed between Avino and Alexco Resource Corp. (“Alexco”), granting Alexco the right to acquire a 65% interest in 14 quartz mining leases located in the Mayo District, Yukon Territory, Canada, known as the “Eagle Property” | ||
Description for exercise of the option | To exercise the option, Alexco must pay Avino a total of $70,000 in instalments over 4 years, issue Avino a total of 70,000 Alexco common shares in instalments over 4 years, incur $550,000 in exploration work by the second anniversary of the option agreement date, and a further $2.2 million in exploration work on the Eagle Property by the fourth anniversary of the option agreement date | ||
Consideration payable under agreement by Alexco | $ | $ 70,000 | ||
Shares issuable under agreement by Alexco | shares | 70,000 | ||
Exploration work required under agreement, amount | $ | $ 550,000 | ||
Additional exploration work required under agreement, amount | $ | $ 2,200,000 | ||
Description for succession of agreement | In the event that Alexco earns its 65% interest in the Eagle Property, Alexco and Avino will form a joint venture for the future exploration and development of the Eagle Property, and may contribute towards expenditures in proportion to their interests (65% Alexco / 35% Avino). If either company elects to not contribute its share of costs, then its interest will be diluted. If either company’s joint venture interest is diluted to less than 10%, its interest will convert to a 5.0% net smelter returns royalty, subject to the other’s right to buy-down the royalty to 2.0% for $2.5 million |
NON-CONTROLLING INTEREST (Detai
NON-CONTROLLING INTEREST (Details Narrative) - Avino Mexico [Member] | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about business combination [line items] | |||
Ownership interest, percentage | 99.67% | 99.67% | 99.67% |
Non-controlling interest | 0.33% | 0.33% | 0.33% |
PLANT, EQUIPMENT AND MINING P_2
PLANT, EQUIPMENT AND MINING PROPERTIES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
COST | |||
Beginning balance | $ 44,766 | $ 36,536 | |
Additions | 10,662 | 7,803 | |
Transfers | |||
Disposals | (33) | ||
Effect of movements in exchange rates | (356) | 427 | |
Ending balance | 55,039 | 44,766 | |
ACCUMULATED DEPLETION AND DEPRECIATION | |||
Beginning balance | 12,608 | 8,460 | |
Additions | 3,796 | 4,053 | |
Effect of movements in exchange rates | (108) | 95 | |
Ending balance | 16,296 | 12,608 | |
NET BOOK VALUE | |||
Plant, equipment and mining properties | 38,743 | 32,158 | $ 28,076 |
Mining properties [member] | |||
COST | |||
Beginning balance | 12,482 | 10,990 | |
Additions | 588 | 1,370 | |
Transfers | |||
Disposals | |||
Effect of movements in exchange rates | (108) | 122 | |
Ending balance | 12,962 | 12,482 | |
ACCUMULATED DEPLETION AND DEPRECIATION | |||
Beginning balance | 4,592 | 2,748 | |
Additions | 1,549 | 1,817 | |
Effect of movements in exchange rates | (39) | 27 | |
Ending balance | 6,102 | 4,592 | |
NET BOOK VALUE | |||
Plant, equipment and mining properties | 6,860 | 7,890 | 8,242 |
Office equipment, furniture, and fixtures [member] | |||
COST | |||
Beginning balance | 133 | 83 | |
Additions | 17 | 49 | |
Transfers | |||
Disposals | |||
Effect of movements in exchange rates | (1) | 1 | |
Ending balance | 149 | 133 | |
ACCUMULATED DEPLETION AND DEPRECIATION | |||
Beginning balance | 48 | 36 | |
Additions | 17 | 12 | |
Effect of movements in exchange rates | |||
Ending balance | 65 | 48 | |
NET BOOK VALUE | |||
Plant, equipment and mining properties | 84 | 85 | 47 |
Computer equipment [Member] | |||
COST | |||
Beginning balance | 283 | 253 | |
Additions | 77 | 27 | |
Transfers | |||
Disposals | |||
Effect of movements in exchange rates | (2) | 3 | |
Ending balance | 358 | 283 | |
ACCUMULATED DEPLETION AND DEPRECIATION | |||
Beginning balance | 144 | 116 | |
Additions | 32 | 27 | |
Effect of movements in exchange rates | (1) | 1 | |
Ending balance | 175 | 144 | |
NET BOOK VALUE | |||
Plant, equipment and mining properties | 183 | 139 | 137 |
Mine machinery and transportation equipment [Member] | |||
COST | |||
Beginning balance | 16,377 | 14,927 | |
Additions | 990 | 1,271 | |
Transfers | |||
Disposals | |||
Effect of movements in exchange rates | (110) | 179 | |
Ending balance | 17,257 | 16,377 | |
ACCUMULATED DEPLETION AND DEPRECIATION | |||
Beginning balance | 6,084 | 4,206 | |
Additions | 799 | 1,827 | |
Effect of movements in exchange rates | (53) | 51 | |
Ending balance | 6,830 | 6,084 | |
NET BOOK VALUE | |||
Plant, equipment and mining properties | 10,427 | 10,293 | 10,721 |
Mill machinery and processing equipment [Member] | |||
COST | |||
Beginning balance | 9,866 | 7,638 | |
Additions | 7,901 | 2,137 | |
Transfers | (45) | ||
Disposals | (33) | ||
Effect of movements in exchange rates | (86) | 91 | |
Ending balance | 17,603 | 9,866 | |
ACCUMULATED DEPLETION AND DEPRECIATION | |||
Beginning balance | 1,139 | 846 | |
Additions | 1,287 | 283 | |
Effect of movements in exchange rates | (10) | 10 | |
Ending balance | 2,416 | 1,139 | |
NET BOOK VALUE | |||
Plant, equipment and mining properties | 15,187 | 8,727 | 6,792 |
Buildings [member] | |||
COST | |||
Beginning balance | 5,625 | 2,645 | |
Additions | 1,089 | 2,949 | |
Transfers | 45 | ||
Disposals | |||
Effect of movements in exchange rates | (49) | 31 | |
Ending balance | 6,710 | 5,625 | |
ACCUMULATED DEPLETION AND DEPRECIATION | |||
Beginning balance | 601 | 508 | |
Additions | 112 | 87 | |
Effect of movements in exchange rates | (5) | 6 | |
Ending balance | 708 | 601 | |
NET BOOK VALUE | |||
Plant, equipment and mining properties | $ 6,002 | $ 5,024 | $ 2,137 |
PLANT, EQUIPMENT AND MINING P_3
PLANT, EQUIPMENT AND MINING PROPERTIES (Details Narrative) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property, plant and equipment [abstract] | ||
Assets under construction | $ 3,655 | $ 3,283 |
RECLAMATION (Details Narrative)
RECLAMATION (Details Narrative) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Reclamation | ||||
Reclamation bonds | $ 107 | $ 714 | $ 108 | $ 108 |
RELATED PARTY TRANSACTIONS AN_2
RELATED PARTY TRANSACTIONS AND BALANCES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Transactions Between Related Parties | |||
Salaries, benefits, and consulting fees | $ 956 | $ 860 | $ 1,277 |
Share-based payments | 531 | 1,718 | 891 |
Total Key management personnel compensation | $ 1,487 | $ 2,578 | $ 2,168 |
RELATED PARTY TRANSACTIONS AN_3
RELATED PARTY TRANSACTIONS AND BALANCES (Details 1) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of transactions between related parties [line items] | |||
Due to related parties | $ 157 | $ 187 | $ 199 |
Oniva International Services Corp. [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Due to related parties | 107 | 139 | 127 |
Directors [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Due to related parties | 47 | 42 | 45 |
Jasman Yee & Associates, Inc. [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Due to related parties | 3 | 6 | 4 |
Intermark Capital Corp.[Member] | |||
Disclosure of transactions between related parties [line items] | |||
Due to related parties | 20 | ||
Wear Wolfin Designs Ltd.[Member] | |||
Disclosure of transactions between related parties [line items] | |||
Due to related parties | $ 3 |
RELATED PARTY TRANSACTIONS AN_4
RELATED PARTY TRANSACTIONS AND BALANCES (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of transactions between related parties [line items] | |||
Salaries and benefits | $ 956 | $ 860 | $ 1,277 |
Office and miscellaneous | 300 | 464 | 925 |
Exploration and evaluation assets | 5,361 | 5,527 | 4,810 |
Oniva International Services Corp. [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Salaries and benefits | 594 | 450 | 297 |
Office and miscellaneous | 560 | 567 | 507 |
Exploration and evaluation assets | 353 | 352 | 248 |
Total cost | $ 1,507 | $ 1,369 | $ 1,052 |
RELATED PARTY TRANSACTIONS AN_5
RELATED PARTY TRANSACTIONS AND BALANCES (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of transactions between related parties [line items] | |||
Salaries, benefits, and consulting fees | $ 956 | $ 860 | $ 1,277 |
Oniva International Services Corp. [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Amounts receivable, related party transactions | 212 | 232 | 111 |
Salaries, benefits, and consulting fees | 594 | 450 | 297 |
ICC [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Salaries, benefits, and consulting fees | 232 | 231 | 504 |
JYAI [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Salaries, benefits, and consulting fees | 66 | 80 | 140 |
WWD [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Salaries, benefits, and consulting fees | $ 12 | $ 23 | $ 23 |
TERM FACILITY (Details)
TERM FACILITY (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Term Facility | |||
Balance at beginning of the period | $ 8,667 | $ 9,334 | $ 10,000 |
Repayments | (2,000) | (667) | (666) |
Fair value adjustment for modification | 234 | ||
Balance at end of the period | 6,901 | 8,667 | 9,334 |
Less: Current portion | (1,017) | (4,000) | (4,666) |
Non-current portion | $ 5,884 | $ 4,667 | $ 4,667 |
TERM FACILITY (Details Narrativ
TERM FACILITY (Details Narrative) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Jul. 31, 2015 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement Line Items [Line Items] | |||||
Short-term investments | $ 10,000 | $ 1,000 | $ 10,000 | ||
Short-term investments interest rate description | Interest is charged on the facility at a rate of U.S. dollar LIBOR (3 month) plus 4.75% | ||||
Repayment of term facility | $ 6,901 | $ 8,667 | $ 9,334 | $ 10,000 | |
New Amending Agreement [Member] | |||||
Statement Line Items [Line Items] | |||||
Short-term investments interest rate description | Interest on the amended facility is now charged at a rate of US dollar LIBOR (3 month) plus 6.75% during the 12 month deferral period, reverting to US dollar LIBOR (3 month) plus 4.75% for the remainder of the repayment period ending August 2021. | ||||
Repayment of term facility | $ 278 |
EQUIPMENT LOANS (Details)
EQUIPMENT LOANS (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of reconciliation of changes in goodwill [line items] | |||
Less: Future interest charges | $ (50) | $ (50) | $ (130) |
Present value of loan payments | 928 | 1,246 | 2,168 |
Less: Current portion | (517) | (848) | (977) |
Non-current portion | 411 | 398 | 1,191 |
Not later than one year [member] | |||
Disclosure of reconciliation of changes in goodwill [line items] | |||
Contractual maturities | 550 | 886 | 1,060 |
Later Than One Year And Not Later Than Five Years [Member] | |||
Disclosure of reconciliation of changes in goodwill [line items] | |||
Contractual maturities | $ 428 | $ 410 | $ 1,238 |
EQUIPMENT LOANS (Details Narrat
EQUIPMENT LOANS (Details Narrative) - Computer equipment [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Equipment loans expiration description | The Company has entered into loans for mining equipment maturing in between 2018 and 2023 | ||
Net carrying amount | $ 2,232 | $ 2,065 | $ 2,508 |
Bottom of range [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Fixed interest rate | 4.75% | ||
Top of range [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Fixed interest rate | 6.29% |
FINANCE LEASE OBLIGATIONS (Deta
FINANCE LEASE OBLIGATIONS (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Less: Future interest charges | $ (71) | $ (150) | $ (197) |
Present value of lease payments | 1,819 | 2,349 | 2,812 |
Less: current portion | (950) | (1,116) | (1,435) |
Non-current portion | 869 | 1,233 | 1,377 |
Not later than one year [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Contractual maturities | 943 | 1,204 | 1,527 |
Later Than One Year And Not Later Than Five Years [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Contractual maturities | $ 947 | $ 1,295 | $ 1,482 |
FINANCE LEASE OBLIGATIONS (De_2
FINANCE LEASE OBLIGATIONS (Details Narrative) - Lease [member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Finance lease expiration description | The Company has entered into mining equipment leases expiring between 2018 and 2021 | ||
Line of credit facilities | $ 10,375 | ||
Remaining line of credit facilities | 8,224 | ||
Net carrying amount | $ 3,461 | $ 3,951 | $ 4,801 |
Bottom of range [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Interest rate | 0.00% | ||
Top of range [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Interest rate | 14.49% |
WARRANT LIABILITY (Details)
WARRANT LIABILITY (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement Line Items [Line Items] | |||
Balance at beginning of the year | $ 1,161 | $ 1,630 | |
Warrants issued during the year | 2,296 | ||
Balance at end of the year | 2,009 | 1,161 | $ 1,630 |
Less: Current portion | (517) | (848) | (977) |
Non-current portion | 411 | 398 | 1,191 |
Warrant [Member] | |||
Statement Line Items [Line Items] | |||
Balance at beginning of the year | 1,161 | 1,630 | |
Warrants issued during the year | 2,296 | 1,638 | |
Fair value adjustment | (1,304) | (563) | (8) |
Effect of movement in exchange rates | (144) | 94 | |
Balance at end of the year | 2,009 | 1,161 | 1,630 |
Less: Current portion | |||
Non-current portion | $ 2,009 | $ 1,161 | $ 1,630 |
WARRANT LIABILITY (Details 1)
WARRANT LIABILITY (Details 1) - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Outstanding and exercisable underlying shares, Beginning | 3,602,215 | 3,602,215 |
Outstanding and exercisable underlying shares, Ending | 10,778,061 | 3,602,215 |
Warrant [Member] | ||
Outstanding and exercisable underlying shares, Beginning | 3,602,215 | |
Warrants Issued, underlying shares | 7,175,846 | |
Outstanding and exercisable underlying shares, Ending | 10,778,061 | 3,602,215 |
Outstanding and exercisable Weighted Average Exercise Price, Beginning | $ 1.99 | |
Warrants Issued, Weighted Average Exercise Price | 0.80 | |
Outstanding and exercisable Weighted Average Exercise Price, Ending | $ 1.20 | $ 1.99 |
WARRANT LIABILITY (Details 2)
WARRANT LIABILITY (Details 2) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of contingent liabilities in business combination [line items] | |||
Expiry Date | Sep. 25, 2023 | ||
Exercise Price | $ 0.80 | ||
Warrants Outstanding and Exercisable | 10,778,061 | 3,602,215 | 3,602,215 |
March 14, 2019 [Member] | |||
Disclosure of contingent liabilities in business combination [line items] | |||
Expiry Date | Mar. 14, 2019 | ||
Exercise Price | $ 1 | ||
Warrants Outstanding and Exercisable | 40,000 | 40,000 | 40,000 |
November 28, 2019 [Member] | |||
Disclosure of contingent liabilities in business combination [line items] | |||
Expiry Date | Nov. 28, 2019 | ||
Exercise Price | $ 2 | ||
Warrants Outstanding and Exercisable | 3,562,215 | 3,562,215 | 3,562,215 |
September 25, 2023 [Member] | |||
Disclosure of contingent liabilities in business combination [line items] | |||
Expiry Date | Sep. 25, 2023 | ||
Exercise Price | $ 0.80 | ||
Warrants Outstanding and Exercisable | 7,175,846 |
WARRANT LIABILITY (Details 3)
WARRANT LIABILITY (Details 3) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Weighted average assumptions: | |||
Risk-free interest rate | 1.88% | 1.66% | 0.67% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected option life (years) | 3 years 5 months 16 days | 1 year 10 months 25 days | 2 years 3 months 15 days |
Expected stock price volatility | 61.47% | 65.69% | 72.66% |
Weighted average fair value | $ 0.19 | $ 0.32 | $ 0.35 |
WARRANT LIABILITY (Details Narr
WARRANT LIABILITY (Details Narrative) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Warrant Liability Details Narrative Abstract | |||
Expected option life (years) | 3 years 5 months 16 days | 1 year 10 months 25 days | 2 years 3 months 15 days |
DEFERRED REVENUE (Details Narra
DEFERRED REVENUE (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement Line Items [Line Items] | |||
Deferred revenue | $ 573 | ||
Sales Agreement [Member] | |||
Statement Line Items [Line Items] | |||
Unsecured payment received | $ 2,000 | ||
Interest rate description | Interest is charged on the outstanding balance at a rate of US dollar LIBOR (3 month) plus 4.75%. |
RECLAMATION PROVISION (Details)
RECLAMATION PROVISION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reclamation Provision | |||
Balance at beginning of the year | $ 11,638 | $ 6,963 | |
Changes in estimates | (437) | 3,900 | |
Unwinding of discount | 378 | 248 | |
Effect of movements in exchange rates | (780) | 527 | |
Balance at end of the year | 10,799 | 11,638 | |
Less: current portion | (296) | ||
Non-current portion | $ 10,503 | $ 11,638 |
RECLAMATION PROVISION (Details
RECLAMATION PROVISION (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Reclamation provision | $ 10,799 | $ 11,638 | $ 6,963 |
Reclamation provision undiscounted value | $ 16,356 | $ 17,529 | $ 7,634 |
Risk free interest rate | 1.88% | 1.66% | 0.67% |
Durango, Mexico [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Present value of the obligations | $ 1,309 | $ 1,584 | $ 1,233 |
Risk free interest rate | 8.62% | 7.68% | 7.00% |
Inflation rate | 3.80% | 6.77% | 4.25% |
Bralorne [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Present value of the obligations | $ 9,490 | $ 10,054 | $ 5,730 |
Risk free interest rate | 3.41% | 3.46% | 4.39% |
Inflation rate | 1.88% | 1.67% | 1.79% |
SHARE CAPITAL AND SHARE-BASED_2
SHARE CAPITAL AND SHARE-BASED PAYMENTS (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of continuing involvement in derecognised financial assets [line items] | ||
Outstanding and exercisable underlying shares, Beginning | 3,602,215 | 3,602,215 |
Outstanding and exercisable underlying shares, Ending | 10,778,061 | 3,602,215 |
Stock options [Member] | ||
Disclosure of continuing involvement in derecognised financial assets [line items] | ||
Outstanding and exercisable underlying shares, Beginning | 3,311,000 | 1,978,500 |
Granted | 497,500 | 1,475,000 |
Cancelled / Forfeited | (497,500) | (122,500) |
Expired | (306,000) | |
Exercised | (87,500) | (20,000) |
Outstanding and exercisable underlying shares, Ending | 2,917,500 | 3,311,000 |
Stock options outstanding | 2,917,500 | |
Stock options exercisable | 2,576,250 | |
Outstanding and exercisable Weighted Average Exercise Price, Beginning | $ 2.12 | $ 2.24 |
Granted | 1.30 | 1.98 |
Cancelled / Forfeited | 2.14 | 2.54 |
Expired | 1.61 | |
Exercised | 1.61 | 1.62 |
Outstanding and exercisable Weighted Average Exercise Price, Ending | $ 2.12 | |
Stock options outstanding | 2.04 | |
Stock options exercisable | $ 2.14 |
SHARE CAPITAL AND SHARE-BASED_3
SHARE CAPITAL AND SHARE-BASED PAYMENTS (Details 1) - 12 months ended Dec. 31, 2018 | $ / sharesshares | $ / sharesshares |
Disclosure of continuing involvement in derecognised financial assets [line items] | ||
Expiry Date | Sep. 25, 2023 | Sep. 25, 2023 |
Exercise Price | $ / shares | $ 0.80 | |
Stock options [Member] | ||
Disclosure of continuing involvement in derecognised financial assets [line items] | ||
Stock Options Outstanding | 2,917,500 | 2,917,500 |
Stock options exercisable | 2,576,250 | 2,576,250 |
Weighted Average Remaining Contractual Life (Years), stock options outstanding | 3 years 22 days | 3 years 22 days |
Weighted Average Remaining Contractual Life (Years), stock options exercisable | 2 years 10 months 3 days | 2 years 10 months 3 days |
Stock options [Member] | September 19, 2019 [Member] | ||
Disclosure of continuing involvement in derecognised financial assets [line items] | ||
Expiry Date | Sep. 19, 2019 | Sep. 19, 2019 |
Exercise Price | $ / shares | $ 1.90 | |
Stock Options Outstanding | 570,000 | 570,000 |
Stock options exercisable | 570,000 | 570,000 |
Weighted Average Remaining Contractual Life (Years), stock options outstanding | 8 months 19 days | 8 months 19 days |
Weighted Average Remaining Contractual Life (Years), stock options exercisable | 8 months 19 days | 8 months 19 days |
Stock options [Member] | December 22, 2019 [Member] | ||
Disclosure of continuing involvement in derecognised financial assets [line items] | ||
Expiry Date | Dec. 22, 2019 | Dec. 22, 2019 |
Exercise Price | $ / shares | $ 1.90 | |
Stock Options Outstanding | 30,000 | 30,000 |
Stock options exercisable | 30,000 | 30,000 |
Weighted Average Remaining Contractual Life (Years), stock options outstanding | 11 months 23 days | 11 months 23 days |
Weighted Average Remaining Contractual Life (Years), stock options exercisable | 11 months 23 days | 11 months 23 days |
Stock options [Member] | September 2, 2021 [Member] | ||
Disclosure of continuing involvement in derecognised financial assets [line items] | ||
Expiry Date | Sep. 2, 2021 | Sep. 2, 2021 |
Exercise Price | $ / shares | $ 2.95 | |
Stock Options Outstanding | 552,500 | 552,500 |
Stock options exercisable | 552,500 | 552,500 |
Weighted Average Remaining Contractual Life (Years), stock options outstanding | 2 years 8 months 2 days | 2 years 8 months 2 days |
Weighted Average Remaining Contractual Life (Years), stock options exercisable | 2 years 8 months 2 days | 2 years 8 months 2 days |
Stock options [Member] | September 20, 2022 [Member] | ||
Disclosure of continuing involvement in derecognised financial assets [line items] | ||
Expiry Date | Sep. 20, 2022 | Sep. 20, 2022 |
Exercise Price | $ / shares | $ 1.98 | |
Stock Options Outstanding | 1,295,000 | 1,295,000 |
Stock options exercisable | 1,295,000 | 1,295,000 |
Weighted Average Remaining Contractual Life (Years), stock options outstanding | 3 years 8 months 19 days | 3 years 8 months 19 days |
Weighted Average Remaining Contractual Life (Years), stock options exercisable | 3 years 8 months 19 days | 3 years 8 months 19 days |
Stock options [Member] | October 6, 2022 [Member] | ||
Disclosure of continuing involvement in derecognised financial assets [line items] | ||
Expiry Date | Oct. 6, 2022 | Oct. 6, 2022 |
Exercise Price | $ / shares | $ 1.98 | |
Stock Options Outstanding | 15,000 | 15,000 |
Stock options exercisable | 15,000 | 15,000 |
Weighted Average Remaining Contractual Life (Years), stock options outstanding | 3 years 9 months 7 days | 3 years 9 months 7 days |
Weighted Average Remaining Contractual Life (Years), stock options exercisable | 3 years 9 months 7 days | 3 years 9 months 7 days |
Stock options [Member] | August 28, 2023 [Member] | ||
Disclosure of continuing involvement in derecognised financial assets [line items] | ||
Expiry Date | Aug. 28, 2023 | Aug. 28, 2023 |
Exercise Price | $ / shares | $ 1.30 | |
Stock Options Outstanding | 455,000 | 455,000 |
Stock options exercisable | 113,750 | 113,750 |
Weighted Average Remaining Contractual Life (Years), stock options outstanding | 4 years 7 months 28 days | 4 years 7 months 28 days |
Weighted Average Remaining Contractual Life (Years), stock options exercisable | 4 years 7 months 28 days | 4 years 7 months 28 days |
SHARE CAPITAL AND SHARE-BASED_4
SHARE CAPITAL AND SHARE-BASED PAYMENTS (Details 2) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Weighted average assumptions: | |||
Risk-free interest rate | 1.88% | 1.66% | 0.67% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected option life (years) | 3 years 5 months 16 days | 1 year 10 months 25 days | 2 years 3 months 15 days |
Expected stock price volatility | 61.47% | 65.69% | 72.66% |
Stock options [Member] | |||
Weighted average assumptions: | |||
Risk-free interest rate | 2.25% | 1.80% | 0.69% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected option life (years) | 5 years | 5 years | 5 years |
Expected stock price volatility | 60.26% | 68.24% | 65.13% |
Weighted average fair value at grant date | $ 0.53 | $ 1.14 | $ 1.60 |
SHARE CAPITAL AND SHARE-BASED_5
SHARE CAPITAL AND SHARE-BASED PAYMENTS (Details 3) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of classes of share capital [abstract] | |||
Net income (loss) for the period | $ 1,626 | $ 2,522 | $ 2,016 |
Basic weighted average number of shares outstanding | 56,851,626 | 52,523,454 | 42,695,999 |
Effect of dilutive share options, warrants, and RSUs | 3,149,011 | 796,555 | 1,095,452 |
Diluted weighted average number of shares outstanding | 60,000,637 | 53,320,009 | 43,791,451 |
Basic earnings per share | $ 0.03 | $ 0.05 | $ 0.05 |
Diluted earnings per share | $ 0.03 | $ 0.05 | $ 0.05 |
SHARE CAPITAL AND SHARE-BASED_6
SHARE CAPITAL AND SHARE-BASED PAYMENTS (Details Narrative) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)shares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)shares | |
Disclosure of continuing involvement in derecognised financial assets [line items] | |||||
Cash commission, percent | 7.00% | ||||
Cost | $ 55,039 | $ 55,039 | $ 44,766 | $ 44,766 | $ 36,536 |
Share issue related cost | 8,466 | 40 | 22,791 | ||
Capitalized to exploration and evaluation assets | 46,781 | $ 46,781 | 43,338 | 43,338 | 30,792 |
Finance cost | 444 | 157 | 142 | ||
Common shares issued for cash, exercise of stock options, amount | $ 112 | $ 25 | 949 | ||
Exercise price of warrants | $ / shares | $ 0.80 | ||||
Warrant expiry date | Sep. 25, 2023 | ||||
Warrants issued during the period | $ 2,296 | ||||
Common shares issued for cash, exercise of stock options, shares | shares | 20,000 | ||||
Common shares issued units | shares | 7,105,658 | ||||
Common shares issued per unit | $ / shares | $ 0.65 | ||||
Common shares issued upon the vesting of restricted share units | shares | 257,152 | ||||
Proceeds from issuance of common stock | $ 4,619 | ||||
Bought-deal financing, amount | 25,000,000 | ||||
Groos proceeds on cash commission | 324 | ||||
Legal and regulatory costs | 185 | ||||
Reflected as share issuance costs | 256 | ||||
Share-based payments | 130 | $ 1,177 | 875 | ||
Issuance costs relating to the shelf registration | 168 | ||||
Warrant [Member] | |||||
Disclosure of continuing involvement in derecognised financial assets [line items] | |||||
Cost | 253 | $ 253 | |||
Warrants issued during the period | 2,296 | 1,638 | |||
Equity attributable to common share | 2,323 | 2,323 | |||
Share Capital And Share-Based Payment [Member] | |||||
Disclosure of continuing involvement in derecognised financial assets [line items] | |||||
Capitalized to exploration and evaluation assets | $ 20 | $ 20 | 127 | 127 | 96 |
Share Capital [Member] | |||||
Disclosure of continuing involvement in derecognised financial assets [line items] | |||||
Cash commission, percent | 3.00% | ||||
Share issue related cost | $ 471 | ||||
Common shares issued | shares | 3,000,000 | ||||
Proceeds from issuance of common stock | $ 4,667 | ||||
Market offering under prospectus supplements, shares | shares | 151,800 | ||||
Market offering under prospectus supplements, amount | $ 137 | ||||
Offering price per share | $ / shares | $ 2 | ||||
Groos proceeds on cash commission | 4 | ||||
Net share capital allocation | 4,223 | ||||
Restricted Share Units [Member] | |||||
Disclosure of continuing involvement in derecognised financial assets [line items] | |||||
Capitalized to exploration and evaluation assets | $ 50 | $ 50 | 116 | $ 116 | 35 |
Carrying value of RSUs exercised, Shares | shares | 274,658 | ||||
Common shares issued for cash, exercise of stock options, amount | $ 112 | ||||
Common shares issued for cash, exercise of stock options, shares | shares | 87,500 | ||||
Groos proceeds on cash commission | $ 5 | ||||
Share-based payments | $ 500 | $ 841 | $ 343 | ||
Restricted share units outstanding | shares | 1,235,301 | 1,235,301 | 592,172 | 592,172 | 787,500 |
Restricted share granted | shares | 1,081,500 | 1,081,500 | 80,500 | 80,500 | 790,000 |
Market offering under prospectus supplements [Member] | |||||
Disclosure of continuing involvement in derecognised financial assets [line items] | |||||
Common shares issued | shares | 10,000 | ||||
Average price | $ / shares | $ 1.67 | ||||
Proceeds from issuance of common stock | $ 16 | ||||
Stock options [Member] | |||||
Disclosure of continuing involvement in derecognised financial assets [line items] | |||||
Stock option grant percent | 10.00% |
REVENUE AND COST OF SALES (Deta
REVENUE AND COST OF SALES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue And Cost Of Sales | |||
Concentrate sales | $ 34,551 | $ 33,327 | $ 34,925 |
Provisional pricing adjustments | (435) | 32 | (233) |
Total Revenue | $ 34,116 | $ 33,359 | $ 34,692 |
REVENUE AND COST OF SALES (De_2
REVENUE AND COST OF SALES (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue And Cost Of Sales Details 1Abstract | |||
Production costs | $ 24,619 | $ 19,418 | $ 21,060 |
Depreciation and depletion | 3,231 | 2,688 | 1,901 |
Cost of sales | $ 27,850 | $ 22,106 | $ 22,961 |
REVENUE AND COST OF SALES (De_3
REVENUE AND COST OF SALES (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue And Cost Of Sales | |||
Revenue from mining operations | $ 34,116 | $ 33,359 | $ 34,692 |
GENERAL AND ADMINISTRATIVE EX_2
GENERAL AND ADMINISTRATIVE EXPENSES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
General And Administrative Expenses | |||
Salaries and benefits | $ 1,257 | $ 1,196 | $ 1,159 |
Office and miscellaneous | 300 | 464 | 925 |
Management and consulting fees | 354 | 443 | 495 |
Investor relations | 402 | 366 | 258 |
Travel and promotion | 226 | 323 | 359 |
Professional fees | 529 | 247 | 172 |
Directors fees | 161 | 158 | 166 |
Regulatory and compliance fees | 311 | 101 | 243 |
Depreciation | 25 | 15 | 12 |
General and administrative expenses | $ 3,565 | $ 3,313 | $ 3,789 |
COMMITMENTS (Details)
COMMITMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of amounts to be recovered or settled after twelve months for classes of assets and liabilities that contain amounts to be recovered or settled both no more and more than twelve months after reporting date [line items] | |||
Minimum rental and lease payments | $ 3,176 | $ 566 | $ 2,117 |
Not later than one year [member] | |||
Disclosure of amounts to be recovered or settled after twelve months for classes of assets and liabilities that contain amounts to be recovered or settled both no more and more than twelve months after reporting date [line items] | |||
Minimum rental and lease payments | 3,092 | 300 | 1,540 |
Later Than One Year And Not Later Than Five Years [Member] | |||
Disclosure of amounts to be recovered or settled after twelve months for classes of assets and liabilities that contain amounts to be recovered or settled both no more and more than twelve months after reporting date [line items] | |||
Minimum rental and lease payments | 74 | 251 | 557 |
Later than five years [member] | |||
Disclosure of amounts to be recovered or settled after twelve months for classes of assets and liabilities that contain amounts to be recovered or settled both no more and more than twelve months after reporting date [line items] | |||
Minimum rental and lease payments | $ 10 | $ 15 | $ 20 |
COMMITMENTS (Details Narrative)
COMMITMENTS (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments | |||
Office lease payments recognized as expense | $ 81 | $ 81 | $ 83 |
Commitments expenditures | $ 2,930 |
SUPPLEMENTARY CASH FLOW INFOR_2
SUPPLEMENTARY CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net change in non-cash working capital items: | |||
Deferred revenues | $ 573 | ||
Accounts payable and accrued liabilities | 2,329 | (136) | 708 |
Prepaid expenses and other assets | 981 | (1,672) | (115) |
Amounts receivable | 543 | (1,585) | (355) |
Taxes payable | (358) | (292) | (14) |
Amounts due to related parties | (44) | 1 | 42 |
Taxes recoverable | 1,017 | (2,828) | (1,323) |
Inventory | (42) | (2,565) | (41) |
Net change in non-cash working capital items | $ 4,999 | $ (9,077) | $ (1,098) |
SUPPLEMENTARY CASH FLOW INFOR_3
SUPPLEMENTARY CASH FLOW INFORMATION (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Supplementary Cash Flow Information | |||
Interest paid | $ 959 | $ 445 | $ 471 |
Taxes paid | 4,991 | 5,765 | 3,136 |
Equipment acquired under finance leases and equipment loans | $ 1,771 | $ 1,228 | $ 3,452 |
FINANCIAL INSTRUMENTS (Details)
FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of amounts to be recovered or settled after twelve months for classes of assets and liabilities that contain amounts to be recovered or settled both no more and more than twelve months after reporting date [line items] | |||
Accounts payable and accrued liabilities | $ 5,885 | $ 3,512 | $ 3,726 |
Due to related parties | 157 | 187 | 199 |
Term facility | 5,884 | 4,667 | 4,667 |
Equipment loans | 411 | 398 | 1,191 |
Finance lease obligations | 869 | 1,233 | 1,377 |
Total | 1,819 | $ 2,349 | $ 2,812 |
Financial instruments [member] | |||
Disclosure of amounts to be recovered or settled after twelve months for classes of assets and liabilities that contain amounts to be recovered or settled both no more and more than twelve months after reporting date [line items] | |||
Accounts payable and accrued liabilities | 5,885 | ||
Due to related parties | 157 | ||
Minimum rental and lease payments | 246 | ||
Term facility | 7,669 | ||
Equipment loans | 978 | ||
Finance lease obligations | 1,889 | ||
Total | 16,824 | ||
Not later than one year [member] | |||
Disclosure of amounts to be recovered or settled after twelve months for classes of assets and liabilities that contain amounts to be recovered or settled both no more and more than twelve months after reporting date [line items] | |||
Accounts payable and accrued liabilities | 5,885 | ||
Due to related parties | 157 | ||
Minimum rental and lease payments | 162 | ||
Term facility | 1,432 | ||
Equipment loans | 550 | ||
Finance lease obligations | 942 | ||
Total | 9,128 | ||
Later Than One Year And Not Later Than Five Years [Member] | |||
Disclosure of amounts to be recovered or settled after twelve months for classes of assets and liabilities that contain amounts to be recovered or settled both no more and more than twelve months after reporting date [line items] | |||
Accounts payable and accrued liabilities | |||
Due to related parties | |||
Minimum rental and lease payments | 74 | ||
Term facility | 6,237 | ||
Equipment loans | 428 | ||
Finance lease obligations | 947 | ||
Total | 7,686 | ||
Later than five years [member] | |||
Disclosure of amounts to be recovered or settled after twelve months for classes of assets and liabilities that contain amounts to be recovered or settled both no more and more than twelve months after reporting date [line items] | |||
Accounts payable and accrued liabilities | |||
Due to related parties | |||
Minimum rental and lease payments | 10 | ||
Term facility | |||
Equipment loans | |||
Finance lease obligations | |||
Total | $ 10 |
FINANCIAL INSTRUMENTS (Details
FINANCIAL INSTRUMENTS (Details 1) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of amounts to be recovered or settled after twelve months for classes of assets and liabilities that contain amounts to be recovered or settled both no more and more than twelve months after reporting date [line items] | ||||
Cash | $ 3,252 | $ 3,420 | $ 11,780 | |
Long-term investments | 10 | 34 | 27 | |
Reclamation bonds | 107 | 714 | 108 | $ 108 |
Amounts receivable | 4,091 | 4,635 | 3,050 | |
Accounts payable and accrued liabilities | 5,885 | 3,512 | 3,726 | |
Due to related parties | 157 | 187 | 199 | |
Equipment loans | 411 | 398 | 1,191 | |
Finance lease obligations | 869 | 1,233 | $ 1,377 | |
MXN [Member] | ||||
Disclosure of amounts to be recovered or settled after twelve months for classes of assets and liabilities that contain amounts to be recovered or settled both no more and more than twelve months after reporting date [line items] | ||||
Cash | 8,378 | 9,504 | ||
Long-term investments | ||||
Reclamation bonds | ||||
Amounts receivable | ||||
Accounts payable and accrued liabilities | (85,951) | (27,482) | ||
Due to related parties | ||||
Equipment loans | ||||
Finance lease obligations | (13,907) | (751) | ||
Net exposure | (91,480) | (18,729) | ||
US dollar equivalent | (4,656) | (949) | ||
C$ [Member] | ||||
Disclosure of amounts to be recovered or settled after twelve months for classes of assets and liabilities that contain amounts to be recovered or settled both no more and more than twelve months after reporting date [line items] | ||||
Cash | 2,421 | 321 | ||
Long-term investments | 14 | 42 | ||
Reclamation bonds | 146 | 896 | ||
Amounts receivable | 114 | 132 | ||
Accounts payable and accrued liabilities | (891) | (603) | ||
Due to related parties | (215) | (225) | ||
Equipment loans | (301) | (782) | ||
Finance lease obligations | (533) | (1,002) | ||
Net exposure | 755 | (1,221) | ||
US dollar equivalent | $ 554 | $ (974) |
FINANCIAL INSTRUMENTS (Detail_2
FINANCIAL INSTRUMENTS (Details 2) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of amounts to be recovered or settled after twelve months for classes of assets and liabilities that contain amounts to be recovered or settled both no more and more than twelve months after reporting date [line items] | |||
Cash | $ 3,252 | $ 3,420 | $ 11,780 |
Amounts receivable | 4,091 | 4,635 | 3,050 |
Long-term investments | 10 | 34 | 27 |
Warrant liability | 2,009 | $ 1,161 | $ 1,630 |
Level 1 of fair value hierarchy [Member] | |||
Disclosure of amounts to be recovered or settled after twelve months for classes of assets and liabilities that contain amounts to be recovered or settled both no more and more than twelve months after reporting date [line items] | |||
Cash | 3,252 | ||
Amounts receivable | |||
Long-term investments | 10 | ||
Warrant liability | |||
Total financial assets and liabilities | 3,262 | ||
Level 2 of fair value hierarchy [Member] | |||
Disclosure of amounts to be recovered or settled after twelve months for classes of assets and liabilities that contain amounts to be recovered or settled both no more and more than twelve months after reporting date [line items] | |||
Cash | |||
Amounts receivable | 4,091 | ||
Long-term investments | |||
Warrant liability | |||
Total financial assets and liabilities | 4,091 | ||
Level 3 of fair value hierarchy [Member] | |||
Disclosure of amounts to be recovered or settled after twelve months for classes of assets and liabilities that contain amounts to be recovered or settled both no more and more than twelve months after reporting date [line items] | |||
Cash | |||
Amounts receivable | |||
Long-term investments | |||
Warrant liability | (2,009) | ||
Total financial assets and liabilities | $ (2,009) |
FINANCIAL INSTRUMENTS (Detail_3
FINANCIAL INSTRUMENTS (Details Narrative) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)Integer | Dec. 31, 2017USD ($)Integer | Dec. 31, 2016USD ($)Integer | |
Disclosure of amounts to be recovered or settled after twelve months for classes of assets and liabilities that contain amounts to be recovered or settled both no more and more than twelve months after reporting date [line items] | |||
Cash | $ 3,252 | $ 3,420 | $ 11,780 |
Credit Risk [Member] | |||
Disclosure of amounts to be recovered or settled after twelve months for classes of assets and liabilities that contain amounts to be recovered or settled both no more and more than twelve months after reporting date [line items] | |||
Concentration of credit risk, counterparties accounted for trade accounts receivable | Integer | 6 | 3 | 3 |
Price Risk [Member] | |||
Disclosure of amounts to be recovered or settled after twelve months for classes of assets and liabilities that contain amounts to be recovered or settled both no more and more than twelve months after reporting date [line items] | |||
Asset and liability exposure, description | Based on outstanding accounts receivable that were subject to pricing adjustments, a 10% change in metals prices would have an impact on net earnings (loss) of approximately $419 (December 31, 2017 - $224). | ||
Impact on net earning (loss) | $ 419 | $ 224 | |
Price Risk [Member] | Long-term investments [Member] | |||
Disclosure of amounts to be recovered or settled after twelve months for classes of assets and liabilities that contain amounts to be recovered or settled both no more and more than twelve months after reporting date [line items] | |||
Asset and liability exposure, description | A 10% change in market prices would not have a material impact on the Company’s operations. | ||
Foreign Currency Risk [Member] | |||
Disclosure of amounts to be recovered or settled after twelve months for classes of assets and liabilities that contain amounts to be recovered or settled both no more and more than twelve months after reporting date [line items] | |||
Asset and liability exposure, description | A 10% fluctuation in the US/Mexican and Canadian/US exchange rates would impact the Company’s earnings (loss) for the year ended December 31, 2018, by approximately $452 (December 31, 2017 - $327). | ||
Impact on net earning (loss) | $ 452 | $ 327 | |
Liquidity risk [Member] | |||
Disclosure of amounts to be recovered or settled after twelve months for classes of assets and liabilities that contain amounts to be recovered or settled both no more and more than twelve months after reporting date [line items] | |||
Cash | 3,252 | ||
Working capital | $ 13,106 | ||
Interest Rate Risk [Member] | |||
Disclosure of amounts to be recovered or settled after twelve months for classes of assets and liabilities that contain amounts to be recovered or settled both no more and more than twelve months after reporting date [line items] | |||
Asset and liability exposure, description | A 10% change in the interest rate would not a result in a material impact on the Company’s operations. |
CAPITAL MANAGEMENT (Details)
CAPITAL MANAGEMENT (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Capital Management Details Abstract | ||||
Equity | $ 75,168 | $ 69,002 | $ 61,794 | $ 37,353 |
Term Facility | 6,901 | 8,667 | 9,333 | |
Finance Lease Obligations | 1,819 | 2,349 | 2,812 | |
Equipment Loans | 928 | 1,246 | 2,168 | |
Total capital | $ 84,816 | $ 81,264 | $ 76,107 |
SEGMENTED INFORMATION (Details)
SEGMENTED INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Operating Segments | |||
Silver | $ 17,259 | $ 20,159 | $ 23,641 |
Copper | 12,996 | 8,227 | 9,593 |
Gold | 9,866 | 10,131 | 7,508 |
Penalties, treatment costs and refining charges | (6,005) | (5,158) | (6,050) |
Total revenue from mining operations | $ 34,116 | $ 33,359 | $ 34,692 |
SEGMENTED INFORMATION (Details
SEGMENTED INFORMATION (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Operating Segments | |||
Customer 1 | $ 23,314 | $ 24,845 | $ 23,833 |
Customer 2 | 1,547 | 7,452 | 6,319 |
Customer 3 | 344 | ||
Customer 4 | 321 | 1,062 | 4,540 |
Customer 5 | 519 | ||
Customer 6 | 8,071 | ||
Total revenue from mining operations | $ 34,116 | $ 33,359 | $ 34,692 |
SEGMENTED INFORMATION (Detail_2
SEGMENTED INFORMATION (Details 2) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure Of Operating Segments | |||
Exploration and evaluation assets - Mexico | $ 9,692 | $ 9,034 | $ 7,979 |
Exploration and evaluation assets - Canada | 37,089 | 34,304 | 22,813 |
Total exploration and evaluation assets | $ 46,781 | $ 43,338 | $ 30,792 |
SEGMENTED INFORMATION (Detail_3
SEGMENTED INFORMATION (Details 3) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure Of Operating Segments | |||
Plant, equipment and mining properties - Mexico | $ 36,484 | $ 28,834 | $ 24,578 |
Plant, equipment and mining properties - Canada | 2,259 | 3,324 | 3,498 |
Total plant, equipment and mining properties | $ 38,743 | $ 32,158 | $ 28,076 |
SEGMENTED INFORMATION (Detail_4
SEGMENTED INFORMATION (Details Narrative) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)Integer | Dec. 31, 2017USD ($)Integer | Dec. 31, 2016USD ($)Integer | |
Disclosure of operating segments [abstract] | |||
Total revenue from mining operations | $ | $ 34,116 | $ 33,359 | $ 34,692 |
Number of customers accounted for total revenues | Integer | 6 | 3 | 3 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes Details Abstract | |||
Current income tax expense | $ 1,052 | $ 2,911 | $ 3,434 |
Deferred income tax expense (recovery) | (645) | (140) | 1,005 |
Total income tax expense | $ 407 | $ 2,771 | $ 4,439 |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes Details 1Abstract | |||
Net income before income taxes | $ 2,033 | $ 5,293 | $ 6,455 |
Combined statutory tax rate | 27.00% | 26.00% | 26.00% |
Income tax expense at the Canadian statutory rate | $ 549 | $ 1,376 | $ 1,678 |
Reconciling items: | |||
Effect of difference in foreign tax rates | 48 | 285 | 307 |
Non-deductible/non-taxable items | (121) | 602 | 700 |
Change in unrecognized deductible temporary differences | (257) | 1,086 | 1,408 |
Impact of foreign exchange | 915 | (491) | 778 |
Special mining duties | 117 | 511 | 780 |
Impact of change of tax rates | (322) | ||
Revisions to estimates | (368) | (248) | (1,095) |
Share issue costs | (231) | (379) | |
Other items | (245) | (106) | 262 |
Income tax expense recognized in the year | $ 407 | $ 2,771 | $ 4,439 |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Income Taxes Details 2Abstract | |||
Deferred income tax assets | $ 4,654 | $ 4,888 | $ 2,831 |
Deferred income tax liabilities | (8,557) | (9,436) | (7,519) |
Total deferred income tax assets and liabilities | $ (3,903) | $ (4,548) | $ (4,688) |
INCOME TAXES (Details 3)
INCOME TAXES (Details 3) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of other provisions [line items] | |||
Reclamation provision | $ 10,799 | $ 11,638 | $ 6,963 |
Inventory | 9,231 | 9,102 | 5,804 |
Exploration and evaluation assets | 46,781 | 43,338 | 30,792 |
Plant, equipment and mining properties | 38,743 | 32,158 | 28,076 |
Net deferred income tax liabilities | (3,903) | (4,548) | (4,688) |
Deferred income tax assets and liabilities [Member] | |||
Disclosure of other provisions [line items] | |||
Reclamation provision | 491 | 594 | 503 |
Non-capital losses | 3,104 | 3,197 | |
Other deductible temporary differences | 1,059 | 1,097 | 2,328 |
Inventory | (94) | (230) | (101) |
Exploration and evaluation assets | (6,378) | (6,464) | (4,265) |
Plant, equipment and mining properties | (2,085) | (2,742) | (3,153) |
Net deferred income tax liabilities | $ (3,903) | $ (4,548) | $ (4,688) |
INCOME TAXES (Details 4)
INCOME TAXES (Details 4) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of other provisions [line items] | |||
Plant, equipment and mining properties | $ 38,743 | $ 32,158 | $ 28,076 |
Exploration and evaluation assets | 46,781 | 43,338 | 30,792 |
Reclamation provision and other | 10,799 | 11,638 | 6,963 |
Unrecognized deductible temporary differences [Member] | |||
Disclosure of other provisions [line items] | |||
Tax losses carried forward | 13,790 | 13,973 | 17,350 |
Share issue costs | 1,263 | 1,100 | 1,466 |
Plant, equipment and mining properties | 6,096 | 6,198 | 3,873 |
Exploration and evaluation assets | 1,207 | 1,330 | 1,257 |
Investments | 44 | 198 | 189 |
Reclamation provision and other | 9,489 | 10,054 | 5,603 |
Unrecognized deductible temporary differences | $ 31,889 | $ 32,853 | $ 29,739 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about borrowings [line items] | |||
Non-cash expense | $ 379 | $ 51 | $ 316 |
Capital losses carried forward | 1,489 | ||
Non-capital tax losses carried forward | $ 12,301 | ||
Non-capital losses expiry date range | 2022 to 2038 | ||
Bottom of range [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Canadian income tax rate increased | 26.00% | ||
Top of range [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Canadian income tax rate increased | 27.00% |
SUBSEQUENT EVENT (Details Narra
SUBSEQUENT EVENT (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement Line Items [Line Items] | |||
Cash commission on gross proceeds, percentage | 7.00% | ||
Issuance costs | $ 8,466 | $ 40 | $ 22,791 |
Subsequent event [Member] | |||
Statement Line Items [Line Items] | |||
Common stock shares issued through "at the market" offering | 835,189 | ||
Proceeds from issuance of common stock including issuance costs | $ 517 | ||
Cash commission on gross proceeds, percentage | 3.00% | ||
Issuance costs | $ 15 | ||
Net proceeds from issuance of common stock | $ 502 |