Document and Entity Information
Document and Entity Information | 11 Months Ended |
Dec. 31, 2017shares | |
Document And Entity Information | |
Entity Registrant Name | POLYMET MINING CORP |
Entity Central Index Key | 866,028 |
Document Type | 40-F |
Document Period End Date | Dec. 31, 2017 |
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 | 319,303,098 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2,017 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Jan. 31, 2017 |
Current | ||
Cash | $ 6,931 | $ 18,674 |
Amounts receivable | 432 | 749 |
Prepaid expenses | 811 | 813 |
Total current assets | 8,174 | 20,236 |
Non-Current | ||
Amounts receivable | 2,533 | 2,012 |
Mineral Property, Plant and Equipment | 395,205 | 364,913 |
Intangible | 3,130 | 1,888 |
Total assets | 409,042 | 389,049 |
Current | ||
Accounts payable and accruels | 3,630 | 3,188 |
Convertible debt | 49,067 | |
Non-convertible debt | 92,268 | |
Environmental rehabilitation provision | 1,266 | 781 |
Total Current Liabilities | 146,231 | 3,969 |
Non-Current | ||
Convertible debt | 42,154 | |
Non-convertible debt | 65,752 | |
Environmental rehabilitation provision | 64,136 | 69,845 |
Total Liabilities | 210,367 | 181,720 |
Shareholders' equity | ||
Share capital | 269,516 | 268,895 |
Share Premium | 1,151 | 1,151 |
Equity Reserves | 60,505 | 59,682 |
Deficit | (132,497) | (122,399) |
Total shareholders' equity | 198,675 | 207,329 |
Total liabilities and shareholders' equity | $ 409,042 | $ 389,049 |
Consolidated Statements of Loss
Consolidated Statements of Loss and Comprehensive Loss - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended |
Dec. 31, 2017 | Jan. 31, 2017 | |
General and Administrative Expenses | ||
Salaries, directors' fees and related benefits | $ 2,209 | $ 2,199 |
Share-based compensation (Note 10) | 1,318 | 1,808 |
Professional fees | 784 | 432 |
Regulatory fees | 137 | 154 |
Investor and public relations | 1,036 | 1,227 |
Office and administration | 637 | 756 |
Amortization | 4 | 18 |
Total General and Administration Expenses | 6,125 | 6,594 |
Other Expenses (Income) | ||
Finance costs - net (Note 11) | 2,233 | 2,672 |
(Gain) / loss on foreign exchange | 6 | (7) |
Gain on disposal of financial instrument (Note 5) | (36) | (8) |
Loss on disposal of intangible (Note 5) | 1,324 | |
Loss on disposal of lands (Note 5) | 469 | |
Other income | (23) | (22) |
Total Other Expenses | 3,973 | 2,635 |
Loss for the Period | 10,098 | 9,229 |
Other Comprehensive Loss (Income) | ||
Reclassified gain on disposal of financial instrument (Note 5) | 36 | 8 |
Items that may be subsequently reclassified to profit or loss: | ||
Unrealized gain on financial instrument (Note 5) | 166 | (221) |
Other Comprehensive Income for the Period | 202 | (213) |
Total Comprehensive Loss for the Period - Net of Tax | $ 10,300 | $ 9,016 |
Basic and Diluted Loss per Share | $ (0.03) | $ (0.03) |
Weighted Average Number of Shares | 318,891,961 | 288,998,010 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders Equity - USD ($) $ in Thousands | Shares Capital [Member] | Share Premium [Member] | Contributed Surplus [Member] | Accumulated Other Comp Inc / (Loss) [Member] | Equity Reserves [Member] | Deficit [Member] | Total |
Balance at Jan. 31, 2016 | $ 242,917 | $ 1,151 | $ 53,560 | $ 199 | $ 53,759 | $ (113,170) | $ 184,657 |
Balance share at Jan. 31, 2016 | 277,557,082 | ||||||
Statement Line Items [Line Items] | |||||||
Total comprehensive loss for the period | 213 | 213 | (9,229) | 9,016 | |||
Private placement and issuance costs | $ 25,091 | 3,444 | 3,444 | 28,535 | |||
Private placement and issuance costs, shares | 40,074,418 | ||||||
Refinance of debentures | 250 | 250 | 250 | ||||
Payment of land purchase options | $ 200 | 200 | |||||
Payment of land purchase options, shares | 241,376 | ||||||
Vesting of restricted shares and RSU's | $ 575 | (694) | (694) | (119) | |||
Vesting of restricted shares and RSU's, shares | 537,481 | ||||||
Share-based compensation | $ 112 | 2,406 | 2,406 | 2,518 | |||
Share-based compensation, shares | 135,162 | ||||||
Bonus share cost amortization | 304 | 304 | 304 | ||||
Balance at Jan. 31, 2017 | $ 268,895 | 1,151 | 59,270 | 412 | 59,682 | (122,399) | 207,329 |
Balance share at Jan. 31, 2017 | 318,545,519 | ||||||
Statement Line Items [Line Items] | |||||||
Total comprehensive loss for the period | (202) | (202) | (10,098) | 10,300 | |||
Payment of land purchase options | $ 256 | 256 | 256 | ||||
Payment of land purchase options, shares | 396,616 | ||||||
Vesting of restricted shares and RSU's | $ 365 | (365) | (365) | ||||
Vesting of restricted shares and RSU's, shares | 360,963 | ||||||
Share-based compensation | 1,111 | 1,111 | 1,111 | ||||
Bonus share cost amortization | 279 | 279 | 279 | ||||
Balance at Dec. 31, 2017 | $ 269,516 | $ 1,151 | $ 60,295 | $ 210 | $ 60,505 | $ (132,497) | $ 198,675 |
Balance share at Dec. 31, 2017 | 319,303,098 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended |
Dec. 31, 2017 | Jan. 31, 2017 | |
Operating Activities | ||
Loss for the period | $ (10,098) | $ (9,229) |
Items not involving cash: | ||
Amortization | 4 | 18 |
Environmental rehabilitation provision accretion | 1,776 | 1,465 |
Share-based compensation | 1,318 | 1,808 |
Unrealized loss on foreign exchange | 1 | 4 |
Loss on disposal of intangible | 1,324 | |
Loss on disposal of lands | 469 | |
Gain on disposal of financial instruments | (36) | (8) |
Changes in non-cash working capital: | ||
Amounts receivable | 23 | (40) |
Prepaid expenses | 2 | 472 |
Accounts payable and accruals | 227 | 47 |
Net cash used in operating activities | (4,990) | (5,463) |
Financing Activities | ||
Share issuance proceeds, net of costs | 28,535 | |
Debenture funding, net of costs | 14,917 | 13,943 |
Debenture repayment | (5,111) | |
Cash settled RSU's | (119) | |
Net cash provided by financing activities | 14,917 | 37,248 |
Investing Activities | ||
Property, plant and equipment purchases | (21,030) | (23,445) |
Financial instrument disposal proceeds | 171 | 82 |
Intangible purchases | (810) | |
Net cash used in investing activities | (21,669) | (23,363) |
Net Increase (Decrease) in Cash | (11,742) | 8,422 |
Effect of foreign exchange on Cash | (1) | (4) |
Cash - Beginning of period | 18,674 | 10,256 |
Cash - End of period | 6,931 | 18,674 |
Supplemental information - non-cash investing and financing | ||
Accounts payable and accruals | (60) | (207) |
Transfer from PP&E to intangible | 2,320 | |
Debt accretion and capitalized interest | 18,512 | 15,103 |
Share-based compensation | 232 | 710 |
Bonus share amortization | 279 | 304 |
Fair value of shares issued for land options | $ 256 | $ 200 |
Nature of Business and Liquidit
Nature of Business and Liquidity | 11 Months Ended |
Dec. 31, 2017 | |
Nature of Business and Liquidity [Abstract] | |
Nature of Business and Liquidity | 1. Nature of Business and Liquidity PolyMet Mining Corp. was incorporated in British Columbia, Canada on March 4, 1981 under the name Fleck Resources Ltd. and changed its name to PolyMet Mining Corp. on June 10, 1998. Through its 100%-owned subsidiary, Poly Met Mining, Inc. (“PolyMet US” and, together with PolyMet Mining Corp., “PolyMet” or the “Company”), the Company is engaged in the exploration and development of natural resource properties. The Company’s primary mineral property is the NorthMet Project (“NorthMet” or “Project”), a polymetallic project in northeastern Minnesota, United States of America, which comprises the NorthMet copper-nickel-precious metals ore body and the Erie Plant, a processing facility located approximately six miles from the ore body. The realization of the Company’s investment in NorthMet and other assets is dependent upon various factors, including the existence of economically recoverable mineral reserves, the ability to obtain permits necessary to construct and operate NorthMet, the ability to obtain financing necessary to complete the development of NorthMet, and generate future profitable operations or alternatively, disposal of the investment on an advantageous basis. The corporate address and records office of the Company are located at 100 King Street West, Suite 5700, Toronto, Ontario, Canada M5X 1C7, and 700 West Georgia, 25 th 444 Cedar Street, Suite 2060, St. Paul, Minnesota, United States of America, 55101 On December 7, 2017, the Board of Directors approved a resolution to change the year end from January 31 to December 31. Accordingly, these financial statements are prepared as at December 31, 2017 and January 31, 2017 and for the eleven months ended December 31, 2017 and twelve months ended January 31, 2017. The consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities in the normal course of operations. Liquidity risk is the risk the Company will not be able to meet its financial obligations as they become due and arises through the excess of financial obligations over financial assets due at any point in time. As a result of the extension to all outstanding debentures and agreement to make available additional debenture funding as described further in Note 16, the Company has secured sufficient financing to meet its current obligations, as well as fund ongoing development and administration expenses in accordance with the Company’s spending plans through December 31, 2018. Management believes, based upon the underlying value of the NorthMet Project, the advanced stage of permitting, the history of support from its shareholders (see Notes 7, 8, 9 and 16) and the ongoing discussions with investment banks and investors, that financing will continue to be available allowing the Company to obtain financing necessary to complete the development of NorthMet and generate future profitable operations. While in the past the Company has been successful in closing financing agreements, there can be no assurance it will be able to do so again. Factors that could affect the availability of financing include the state of debt and equity markets, investor perceptions and expectations, and the metals markets. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 11 Months Ended |
Dec. 31, 2017 | |
Disclosure of Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies a) Statement of Compliance The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). The financial statements were approved by the Board of Directors on March 27, 2018. b) Basis of Consolidation and Presentation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. Intercompany balances and transactions have been eliminated on consolidation. The consolidated financial statements have been prepared under the historical cost convention, as modified for the revaluation of financial assets classified as available-for-sale. All dollar amounts presented are in United States (“U.S.”) dollars unless otherwise specified. c) Critical Accounting Estimates and Judgments The preparation of consolidated financial statements in conformity with IFRS requires the use of certain critical accounting estimates. These critical accounting estimates require management to make judgments and estimates that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as at the date of the financial statements. Critical accounting estimates and judgments used in the preparation of the consolidated financial statements are as follows: (i) Determination of mineral reserves Reserves are estimates of the amount of product that can be economically and legally extracted from the Company’s property. In order to estimate reserves, estimates are required about a range of geological, technical and economic factors, including quantities, production techniques, production costs, capital costs, transport costs, demand, prices and exchange rates. Estimating the quantity of reserves requires the size, shape and depth of deposits to be determined by analyzing geological data. This process may require complex and difficult geological judgments to interpret the data. In addition, management will form a view of forecast sales prices, based on current and long-term historical average price trends. Changes in the proven and probable reserves estimates may impact the carrying value of property, plant and equipment, rehabilitation provisions, recognition of deferred tax amounts and depreciation, depletion and amortization. (ii) Impairment of non-financial assets For its mineral property interest, the Company considers both external and internal sources of information in assessing whether there are any indications of impairment. External sources of information the Company considers include changes in the market, economic, and legal environment in which the Company operates that are not within its control and affect the recoverable amount of mineral property interests. Internal sources of information the Company considers include indications of economic performance of the asset. The carrying value of mineral property, plant, and equipment, and intangible at the balance sheet date is described in Notes 4 and 5, respectively. No impairment indicators were identified on the mineral property, plant and equipment or intangible for the eleven months ended December 31, 2017 or twelve months ended January 31, 2017. (iii) Provision for Environmental Rehabilitation Costs Provisions for environmental rehabilitation costs associated with mineral property, plant and equipment, are recognized when the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax risk-free rate that reflects current market assessments of the time value of money. The Company’s estimates of its ultimate environmental rehabilitation liabilities could be affected by changes in regulations, changes in the extent of environmental rehabilitation required, changes in the means of rehabilitation, changes in the extent of responsibility for the financial liability or changes in cost estimates. The operations of the Company may in the future be affected from time to time in varying degrees by changes in environmental regulations, including those for future removal and site restoration costs. Both the likelihood of new regulations and their overall effect upon the Company may vary greatly and are not predictable. The Company’s provision for environmental rehabilitation cost obligations represents management’s best estimate of the present value of the future cash outflows required to settle the liability. See additional discussion in Note 6. (d) Foreign Currency Translation The U.S. dollar is the functional currency of the Company and its wholly-owned subsidiary. Amounts in the consolidated financial statements are expressed in U.S. dollars unless otherwise stated. Transactions in foreign currencies are translated into the functional currency at the exchange rates at the date of the transactions. Monetary assets and liabilities of the Company’s operations denominated in a currency other than the U.S. dollar are translated using exchange rates prevailing at the balance sheet date. Revenue and expense items are translated at the exchange rates in effect at the date of the underlying transaction. Exchange differences are recognized in net loss in the year in which they arise. (e) Cash and Cash Equivalents The Company considers cash and cash equivalents to include amounts held in banks and highly liquid investments with original maturities of three months or less. (f) Financial Assets All financial assets are initially recorded at fair value and designated upon inception as one of the following four categories: held to maturity, available for sale, loans and receivables or at fair value through profit or loss (“FVTPL”). Financial assets classified as FVTPL are measured at fair value with unrealized gains and losses recognized through profit and loss. Financial assets classified as loans and receivables and held to maturity are measured at amortized cost using the effective interest method less any allowance for impairment. The effective interest method is a method of calculating the amortized cost of a financial asset and of allocating interest income over the relevant period. The effective interest rate is the rate that discounts estimated future cash receipts through the expected life of the financial asset, or, where appropriate, a shorter period. Financial assets classified as available for sale are measured at fair value with unrealized gains and losses recognized in other comprehensive income or loss except when there is objective evidence that the asset is impaired, the cumulative income or loss that had been recognized shall be reclassified from equity to profit or loss as a reclassification adjustment. Transaction costs associated with FVTPL financial assets are expensed as incurred, while transaction costs associated with all other financial assets are included in the initial carrying amount of the asset. See additional discussion in Note 15. (g) Mineral Property, Plant and Equipment Mineral Property Exploration and evaluation costs incurred prior to a Definitive Feasibility Study (“DFS”) are expensed as incurred. Development costs incurred subsequent to a DFS and mineral property acquisition costs are capitalized until the property is placed into production, sold, allowed to lapse or abandoned. As a result of the DFS, NorthMet entered the development stage effective October 1, 2006. The Company has capitalized development expenditures related to NorthMet from that date. Upon commencement of production, related property acquisition and development costs are amortized on a unit of production basis over the estimated proven and probable mineral reserves not to exceed the assets’ useful lives. Plant and Equipment Plant and equipment are recorded at historical cost less accumulated depreciation and if applicable, accumulated impairment losses. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, if it is probable that the future economic benefits of the expenditure will flow to the Company and its cost can be measured reliably. The carrying amount of a replaced part is derecognized. All other repairs and maintenance are charged to the statement of loss and comprehensive loss during the period in which they are incurred. Depreciation of plant and equipment is calculated using the cost of the asset, less its residual value, over the estimated useful life of the asset on a unit of production or straight-line basis, as appropriate. (h) Intangible Intangible costs and related acquisition costs are capitalized until the wetland credits are used, sold, or abandoned. Wetland credits are used to offset and mitigate wetlands disturbed during construction and operation of NorthMet. As such, costs will be transferred to Mineral Property, Plant and Equipment once placed into service and amortized on a unit of production basis over the estimated proven and probable mineral reserves not to exceed the assets’ useful lives. See additional discussion in Note 5. (i) Financial Liabilities All financial liabilities are initially recorded at fair value and designated upon inception as FVTPL or other financial liabilities. Financial liabilities classified as other financial liabilities are initially recognized at fair value less directly attributable transaction costs. After initial recognition, other financial liabilities are subsequently measured at amortized cost using the effective interest method. The effective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that discounts estimated future cash payments through the expected life of the financial liability, or, where appropriate, a shorter period. Financial liabilities classified as FVTPL include financial liabilities held for trading and financial liabilities designated upon initial recognition as FVTPL. Derivatives, including separated embedded derivatives, are also classified as held for trading unless they are designated as effective hedging instruments. Transaction costs on financial liabilities classified as FVTPL are expensed as incurred. At the end of each reporting period subsequent to initial recognition, financial liabilities at FVTPL are measured at fair value, with changes in fair value recognized directly in profit or loss in the period in which they arise. See additional discussion in Note 15. (j) Borrowing costs Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of the cost of that asset until such time as the asset is substantially complete and ready for its intended use or sale. Where funds have been borrowed specifically to finance an asset, the amount capitalized is the actual borrowing costs incurred. Where the funds used to finance an asset form part of general borrowings, the amount capitalized is calculated using a weighted average of rates applicable to relevant borrowings of the Company during the period. Other borrowing costs not directly attributable to a qualifying asset are expensed in the year incurred. Classification in the cash flow statement is in accordance with the classification of the underlying asset to which those payments were capitalized. (k) Share–Based Compensation All share-based compensation awards made to directors, employees and non-employees are measured and recognized using a fair value based method. For directors and employees, or those providing services similar to employees, the fair value of options is determined using the Black-Scholes pricing model. The fair value of the bonus shares, restricted shares, and restricted share units is calculated using the intrinsic value of the shares at issuance, and is amortised over the vesting period. The fair value of the award is accruedand charged over the vesting period either to operations or mineral property plant and equipment, with the offsetting credit to equity reserves for equity settled awards or liabilities for cash settled awards. If and when share options are ultimately exercised or bonus shares, restricted shares, and restricted share units vest, the applicable amounts are transferred to share capital. Certain awards vest upon achievement of non-market performance conditions. On a quarterly basis, management assesses the probability of achieving those performance conditions using the best available information, and estimates the appropriate vesting period. When the Company amends the terms of share options, the incremental change in the fair value of the options due to the amendment, as determined using the Black-Scholes pricing model, is recognized over the vesting period in the statement of loss or capitalized as appropriate. (l) Share Purchase Warrants The Company issues share purchase warrants in connection with certain equity transactions. The fair value of the warrants, as determined using the Black-Scholes pricing model or fair value of goods or services received, is credited to equity reserves. The recorded value of share purchase warrants is transferred to share capital upon exercise. (m) Loss Per Share Loss per share is computed by dividing the loss for the year by the weighted average number of common shares outstanding during the year. Basic and diluted loss per share for each year presented are the same due to the effect of potential issuances of shares under warrant or share option agreements being, in total, anti-dilutive. (n) Income Taxes and Deferred Taxes The income tax expense or benefit for the year consists of two components: current and deferred. Current tax is the expected tax payable or receivable on the taxable profit or loss for the year. Current tax is calculated using tax rates and laws that were enacted or substantively enacted at the balance sheet date in each of the jurisdictions and include any adjustments for taxes payable or recovery in respect of prior periods. Taxable profit or loss differs from profit or loss as reported in the Consolidated Statements of Loss and Comprehensive Loss because of items of income or expense that are taxable or deductible in other years, and items that are never taxable or deductible. Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax basis used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences not eligible for offset. Deferred tax assets are generally recognized for all deductible temporary differences, loss carry forwards and tax credit carry forwards to the extent that it is probable that taxable profits will be available against which they can be utilized. To the extent that the Company does not consider it to be probable that taxable profits will be available against which deductible temporary differences, loss carry forwards, and tax credit carry forwards can be utilized, a deferred tax asset is not recognized. (o) Adoption of New or Amended Accounting Standards On February 1, 2017, the Company adopted the following new or amended accounting standards that were previously issued by the IASB. Certain other new standards and interpretations have been issued but are not expected to have a material impact on the Company’s financial statements and are therefore not discussed below. IAS 7 – Statement of Cash Flows IAS 7 was amended to require disclosures about changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes and amendments are effective for annual periods beginning on or after January 1, 2017. (p) Future Accounting Standards Information on new standards, amendments and interpretations effective for annual periods beginning on or after January 1, 2018 and that are expected to be relevant to the Company’s financial statements is provided below. Certain other new standards and interpretations have been issued but are not expected to have a material impact on the Company’s financial statements and are therefore not discussed below. IFRS 9 – Financial Instruments IFRS 9 addresses the classification, measurement and recognition of financial assets and financial liabilities. This standard replaces parts of IAS 39 - Financial Instruments: Recognition and Measurement IFRS 9 requires financial assets to be classified into two measurement categories: those measured at fair value and those measured at amortized cost. The determination is made at initial recognition. On transition, the Company’s investments classified as available-for-sale (EIP receivable- Note 5) will be re-designated as FVTPL financial instruments, and its revaluation adjustments will be recorded in the statement of loss instead of through other comprehensive loss. The Company expects adoption will result in an adjustment to the opening deficit and accumulated other comprehensive loss for cumulative gains/losses on the EIP receivable (see Note 5) and that the adjustment does not have a significant impact on the Company’s financial statements. For financial liabilities, the standard retains most of the IAS 39 requirements, except as it relates to modifications of liabilities. Under IAS 39, when an entity modified a financial liability, it would decide whether this modification was significant enough to constitute an extinguishment. If the modification was considered an extinguishment of the initial debt, the new modified debt was recorded at fair value and a gain/loss recognized in income for the difference between the carrying amount of the old debt and the new debt. This extinguishment accounting remains the same under IFRS 9. However, accounting under IFRS 9 differs where the change was not significant enough to be an extinguishment. Under IAS 39 modifications would not lead to an immediate income charge as the cash flows of the modified debt would be discounted using the revised effective interest rate over the remaining term of the debt. However, under IFRS 9, the cash flows under the modified debt should be re-discounted using the original effective interest rate of the instrument. The Company expects adoption will result in an adjustment to the opening deficit and carrying value of its convertible and non-convertible debt due to several prior modifications to the outstanding debentures (see Notes 8 and 9). The Company is assessing the impact this adjustment will have on the Company’s financial statements. IFRS 9 also introduces a single expected credit loss impairment model, which is based on changes in credit quality since initial recognition. The Company does not expect this to have a significant impact on the Company’s financial statements upon adoption. The new standard is effective for annual periods beginning on or after January 1, 2018 and the Company will adopt IFRS 9 effective January 1, 2018. IFRS 16 – Leases IFRS 16 replaces IAS 17 - Leases IAS 17 - Leases IAS 17 - Leases The new standard will be effective for annual periods beginning on or after January 1, 2019 with early adoption permitted and the Company plans to adopt IFRS 16 effective January 1, 2018. IFRS 15 – Revenue from Contracts with Customers IFRS 15 replaces IAS 18 - Revenue IAS 11 - Construction Contracts |
Mineral Property Agreements
Mineral Property Agreements | 11 Months Ended |
Dec. 31, 2017 | |
Disclosure of mineral property agreements [Abstract] | |
Mineral Property Agreements | 3. Mineral Property Agreements NorthMet, Minnesota, U.S.A. Pursuant to an agreement dated January 4, 1989, subsequently amended and assigned, the Company leases certain property in St. Louis County, Minnesota from RGGS Land & Minerals Ltd., L.P. The Company can indefinitely extend the term by continuing to make $150,000 annual lease payments on each successive anniversary date or can, at its option, terminate the lease at any time by giving written notice to the lessor not less than 90 days prior to the effective termination date. All lease payments have been paid to December 31, 2018. The next payment is due in January 2019. Pursuant to an agreement effective December 1, 2008, the Company leases certain property in St. Louis County, Minnesota from LMC Minerals. The initial term of the renewable lease is 20 years and calls for minimum annual lease payments of $3,000 for the first four years after which the minimum annual lease payment increased to $30,000. The initial term may be extended for up to four additional five-year periods on the same terms. All lease payments have been paid to December 31, 2017. The next payment is due in November 2018. The lease payments are considered advance royalty payments and will be deducted from future production royalties payable to the lessor, which range from 3% to 5% based on the net smelter return per ton received by the Company. The Company’s recovery of $2.825 million in advance royalty payments to RGGS Land & Minerals Ltd., L.P. is subject to the lessor receiving an amount not less than the amount of the annual lease payment due for that year. The Company’s recovery of $0.189 million in advance royalty payments to LMC Minerals is subject to the lessor receiving an amount not less than the amount of the annual lease payment due for that year. Pursuant to the leases, the Company holds mineral rights and the right to mine upon receiving the required permits. The Company has proposed to acquire surface rights through a land exchange with the United States Forest Service (“USFS”) using land the Company currently owns. The land exchange was authorized by the USFS on January 9, 2017 and is pending execution. |
Mineral Property, Plant and Equ
Mineral Property, Plant and Equipment | 11 Months Ended |
Dec. 31, 2017 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Mineral Property, Plant and Equipment | 4. Mineral Property, Plant and Equipment Details of Mineral Property, Plant, and Equipment are as follows: Net Book Value NorthMet Other fixed assets Total Balance at January 31, 2016 $ 321,559 90 321,649 Additions 38,767 89 38,856 Changes to rehabilitation provision (Note 6) 4,467 - 4,467 Amortization - (59 ) (59 ) Balance at January 31, 2017 364,793 120 364,913 Additions 39,474 32 39,506 Disposals (Note 5) (2,789 ) - (2,789 ) Changes to rehabilitation provision (Note 6) (6,363 ) - (6,363 ) Amortization - (62 ) (62 ) Balance at December 31, 2017 $ 395,115 $ 90 $ 395,205 NorthMet December 31, 2017 January 31, 2017 Mineral property acquisition and interest costs $ 86,863 $ 68,352 Mine plan and development 50,250 47,833 Environmental 122,396 111,421 Consulting and wages 52,965 49,715 Reclamation and remediation (Note 6) 60,289 66,652 Site activities 21,403 19,871 Mine equipment 949 949 Total $ 395,115 $ 364,793 Erie Plant, Minnesota, U.S.A. In February 2004, the Company entered into an option agreement with Cliffs Erie LLC, a subsidiary of Cleveland Cliffs Inc. (together “Cliffs”) to purchase 100% ownership of large parts of the former LTV Steel Mining Company ore processing plant in northeastern Minnesota (the “Erie Plant”). The Company exercised this option in November 2005 under the Asset Purchase Agreement with Cliffs. In December 2006, the Company acquired from Cliffs property and associated rights sufficient to provide it with a railroad connection linking the mine development site and the Erie Plant. The transaction also included a railcar fleet, locomotive fueling and maintenance facilities, water rights and pipelines, administrative offices on site and an additional 6,000 acres of land to the east and west of the existing tailings storage facilities. The consideration paid for the Erie Plant and associated infrastructure was $18.9 million in cash and 9,200,547 shares at a fair market value of $13.953 million. The Company indemnified Cliffs for reclamation and remediation obligations as a result of the above purchases (see Note 6). These obligations are contractual in nature under the terms of the purchase agreements with Cliffs. Once the Company obtains its permit to mine and Cliffs is released from its obligations by State agencies, the Company’s obligations will be directly with the governing bodies. During the eleven months ended December 31, 2017, the Company capitalized 100% of the borrowing costs on the convertible debt (see Note 8) and non-convertible debt (see Note 9) in the amount of $18.512 million (twelve months ended January 31, 2017 - $15.103 million) as part of the cost of NorthMet assets. As NorthMet assets are not in use or capable of operating in a manner intended by management, no depreciation or amortization of these assets has been recorded to December 31, 2017. |
Intangible and EIP Receivable
Intangible and EIP Receivable | 11 Months Ended |
Dec. 31, 2017 | |
Disclosure of detailed information about intangible assets [abstract] | |
Intangible and EIP Receivable | 5. Intangible and EIP Receivable In March 2012, the Company acquired a secured interest in land owned by AG for Waterfowl, LLP (“AG”) that is permitted for wetland restoration. AG subsequently assigned the agreement to EIP Minnesota, LLC (“EIP”) in September 2012. EIP will restore the wetlands and, upon completion, wetland credits are to be issued by the proper government authorities. As part of the initial consideration, AG received warrants to purchase 1,249,315 common shares at $1.3007 per share. These warrants expired on December 31, 2015. In April 2015, the Company entered into a revised agreement with EIP whereby EIP will seek to sell credits the Company is unable to use for the NorthMet Project to third parties and, over time, reimburse the Company for its costs. The Company’s right to purchase remaining credits under the April 2015 agreement expired on February 28, 2017 and EIP will seek to sell these credits and reimburse the Company for its costs under the terms of the agreement. The Company initially recognized the February 2017 receivable at fair value calculated using a 9.75% discount rate and 15-year term resulting in a receivable of $0.564 million and a non-cash loss of $1.324 million. Subsequent fair value changes are accounted for through other comprehensive income or loss. On October 27, 2017, an agreement was entered into with EIP Credit Co., LLC to reserve wetland bank credits for the NorthMet Project for a minimum of five years in exchange for an initial down payment applicable to the purchase price, contractual transfer of certain lands, and annual option payments not applicable to the purchase price. The initial consideration paid was $0.810 million in cash and $2.320 million in lands valued using unobservable inputs (Level 3 measurements) and resulted in a non-cash loss of $0.469 million. Annual option payments of $0.250 million will be expensed as incurred whereas option exercise payments will be recorded to Intangible and transferred to Mineral Property, Plant and Equipment once placed into service. Details of the Intangible are as follows: 11 months ended December 31, 2017 12 months ended January 31, 2017 Intangible – beginning of period $ 1,888 $ 1,888 Additions 3,130 - Disposals (1,888 ) - Intangible – end of period $ 3,130 $ 1,888 Details of the EIP receivable are as follows: 11 months ended December 31, 2017 12 months ended January 31, 2017 EIP Receivable – beginning of period $ 2,656 $ 2,517 Initial recognition 564 - Collections (171 ) (82 ) Gain (Loss) on re-measurement (166 ) 221 EIP Receivable – end of period 2,883 2,656 Less current portion (350 ) (644 ) Non-current portion $ 2,533 $ 2,012 |
Environmental Rehabilitation Pr
Environmental Rehabilitation Provision | 11 Months Ended |
Dec. 31, 2017 | |
Environmental Rehabilitation Provision Narrative Details | |
Environmental Rehabilitation Provision | 6. Environmental Rehabilitation Provision Details of Environmental Rehabilitation Provision are as follows: 11 months ended December 31, 2017 12 months ended January 31, 2017 Environmental Rehabilitation Provision – beginning of period $ 70,626 $ 65,684 Change in estimate (6,363 ) 4,467 Liabilities discharged (637 ) (990 ) Accretion expense 1,776 1,465 Environmental Rehabilitation Provision – end of period 65,402 70,626 Less current portion (1,266 ) (781 ) Non-current portion $ 64,136 $ 69,845 Federal, state and local laws and regulations concerning environmental protection affect the NorthMet assets. As part of the consideration for the Cliffs Purchase Agreements (see Note 4), the Company indemnified Cliffs for reclamation and remediation obligations of the acquired property. The Company’s provisions are based upon existing laws and regulations. It is not currently possible to estimate the impact on operating results, if any, of future legislative or regulatory developments. In April 2010, Cliffs entered into a consent decree with the Minnesota Pollution Control Agency (“MPCA”) relating to alleged violations on the Cliffs Erie Property. This consent decree required both short-term and long-term mitigation. Field studies were completed in 2010 and 2011 and short-term mitigations approved by the MPCA were initiated in 2011. In April 2012, long-term mitigation plans were submitted to the MPCA and, in October 2012, the MPCA approved plans for pilot tests of various treatment options to determine the best course of action. Although there is substantial uncertainty related to applicable water quality standards, engineering scope, and responsibility for the financial liability, the October 2012 response from the MPCA, subsequent communications amongst the MPCA, Cliffs and the Company, and closure plans reflected in the Permit to Mine application provide increasing clarification of the potential liability for long-term mitigation included in the Company’s environmental rehabilitation provision. The Company’s estimate of the environmental rehabilitation provision under IFRS at December 31, 2017 was $65.402 million (January 31, 2017 - $70.626 million) based on estimated cash flows required to settle this obligation in present day costs of $73.301 million (January 31, 2017 - $79.249 million), a projected inflation rate of 2.00% (January 31, 2017 – 2.00%), a market risk-free interest rate of 2.58% (January 31, 2017 – 2.78%) and expenditures expected to occur over a period of approximately 30 years. The decrease during the eleven months ended December 31, 2017 was due to revisions to estimated cash flows as a result of closure plans reflected in the Permit to Mine application. |
Glencore Financing
Glencore Financing | 11 Months Ended |
Dec. 31, 2017 | |
Disclosure of Glencore Financing [Abstract] | |
Glencore Financing | 7. Glencore Financing Since October 2008, the Company and Glencore have entered into a series of financing and other agreements comprising: · Equity – five separate agreements comprising $25.0 million placement of PolyMet common shares in calendar 2009 in two tranches; a $30.0 million placement of PolyMet common shares in calendar 2010 in three tranches; a $20.0 million placement of PolyMet common shares in calendar 2011 in one tranche; a $20.960 million purchase of PolyMet common shares in the 2013 Rights Offering; and a $10.583 million purchase of PolyMet common shares in the 2016 Private Placement (see Note 10); · Convertible debt (“Glencore Convertible Debt”) – agreement comprising $25.0 million initial principal secured convertible debentures drawn in four tranches (see Notes 8 and 16); · Non-convertible debt (“Glencore Non-Convertible Debt”) – four separate agreements comprising $30.0 million initial principal secured debentures in calendar 2015 drawn in four tranches; an $11.0 million initial principal secured debenture in calendar 2016 drawn in one tranche; $14.0 million initial principal secured debenture in calendar 2016 drawn in four tranches; and a $20.0 million initial principal secured debenture in calendar 2017 drawn and to be drawn in two tranches (see Note 9). Subsequent to December 31, 2017, a fifth separate agreement was entered into comprising up to $80.0 million initial principal secured debentures in calendar 2018 to be drawn in five tranches at the Company’s option (see Note 16) · Marketing Agreement whereby Glencore committedto purchase all of the Company’s production of concentrates, metal, or intermediate products on market terms at the time of delivery for at least the first five years of production; and · Corporate Governance Agreement whereby from January 1, 2014 as long as Glencore holds 10% or more of PolyMet’s shares (on a fully diluted basis), Glencore has the right, but not obligation, to nominate at least one director and not more than the number of directors proportionate to Glencore’s fully diluted ownership of PolyMet, rounded down to the nearest whole number, such number to not exceed 49% of the total board. As a result of these financing transactions and the purchase by Glencore of PolyMet common shares previously owned by Cliffs, Glencore’s ownership and ownership rights of PolyMet as at December 31, 2017 comprises: · 92,836,072 shares representing 29.1% of PolyMet’s issued shares (January 31, 2017 - 92,836,072 shares); · Glencore Convertible Debt exchangeable through the exercise of an exchange warrant (“Exchange Warrant”) at $1.2696 per share into 38,660,854 common shares of PolyMet (including capitalized and accrued interest as at December 31, 2017), and where the exercise price and the number of shares issuable are subject to conventional anti-dilution provisions. See Notes 8 and 16 for additional details; · Warrants to purchase 7,055,626 common shares at $1.00 per share at any time untilOctober 28, 2021, subject to acceleration on the earlier of receipt of permits necessary to construct NorthMet or the twelve month anniversary of the issue date provided the 20-day VWAP of PolyMet common shares is equal to or greater than $1.50 (“Acceleration Triggering Event”), and where the exercise price and the number of warrants are subject to conventional anti-dilution provisions. See 2016 Agreements below for additional details; and · Warrants to purchase 625,000 common shares at $0.7797 per share at any time untilOctober 28, 2021, and where the exercise price and the number of warrants are subject to conventional anti-dilution provisions. See 2016 Agreements below for additional details. If Glencore were to exercise all of its rights and obligations under these agreements, it would own 139,177,552 common shares of PolyMet, representing 38.1% on a partially diluted basis, that is, if no other options or warrants were exercised or 34.4% on a fully diluted basis, if all other options and warrants were exercised, whether they are in-the-money or not. Subsequent to December 31, 2017, warrants to purchase 6,458,001 common shares at $0.8231 per share at any time until March 31, 2019 were issued to Glencore. See Note 16 for additional details. 2016 Agreements On June 3, 2016, the Company issued $3.0 million Tranche K secured debenture, on July 1, 2016 it issued $5.0 million Tranche L-1 secured debenture, on July 26, 2016 it issued $3.0 million Tranche L-2 secured debenture, and on August 5, 2016 it issued $3.0 million Tranche M secured debenture to Glencore. Each of these debentures bears interest at 12 month U.S. dollar LIBOR plus 15.0%. The Company provided security on these debentures covering all of the assets of PolyMet, including a pledge of PolyMet’s 100% ownership of Poly Met Mining, Inc. The due date of these debentures was initially the earlier of (i) March 31, 2017 or (ii) the availability of at least $100 million of debt or equity financing or (iii) when it is prudent for PolyMet to repay the debt, on which date all principal and interest accrued to such date will be due and payable. See additional details below and in Note 9. On September 14, 2016, the Company extended the term of the Glencore Non-Convertible Debt, the term of the Glencore Convertible Debt and the expiration date of the associated Exchange Warrant to the earlier of (i) March 31, 2018 or (ii) the availability of at least $100 million of debt or equity financing or (iii) when it is prudent for PolyMet to repay the debt, on which date all principal and interest accrued to such date will be due and payable. In connection with this extension, the Company issued warrants to purchase 625,000 common shares at $0.7797 per share . All other terms of the debt were unchanged. The transaction has been accounted for as a modification of the existing debentures with the $0.250 million fair value of the warrants allocated pro rata on the basis of the Glencore Non-Convertible Debt and Glencore Convertible Debt and an offsetting entry to equity reserves. See additional details in Notes 8 and 9. On October 28, 2016, the Company issued 14,111,251 units (“Glencore Units”) to Glencore for gross proceeds of $10.583 million pursuant to Glencore’s right to maintain its pro rata ownership following the private placement which closed on October 18, 2016. Each Glencore Unit consists of one common share and one half of one common share purchase warrant, each whole warrant exercisable for one common share at a price of $1.00 per share for a period beginning 6 months following the issue date and ending 60 months after the issue date, subject to the Acceleration Triggering Event (see Note 7), and where the exercise price and the number of warrants are subject to conventional anti-dilution provisions. See additional details in Note 10. 2017 Agreements On September 14, 2017, the Company agreed to issue to Glencore secured debentures with a total principal amount of $20.0 million. The debentures bear interest at twelve month US dollar LIBOR plus 15.0% and are due on the earlier of (i) March 31, 2018 or (ii) the availability of at least $100 million of debt or equity financing or (iii) when it is prudent for PolyMet to repay the debt, on which date all principal and interest accrued to such date will be due and payable. The Tranche N Debenture in the amount of $15.0 million was issued on September 18, 2017. The Tranche O Debenture in the amount of $5.0 million was issued subsequent to December 31, 2017 on January 18, 2018. Transaction costs for the financing were $0.083 million. See additional details in Note 9. |
Convertible Debt
Convertible Debt | 11 Months Ended |
Dec. 31, 2017 | |
Disclosure of Convertible Debt [Abstract] | |
Convertible Debt | 8. Convertible Debt Details of the Convertible Debt are as follows: 11 months ended December 31, 2017 12 months ended January 31, 2017 Convertible Debt – beginning of period $ 42,154 $ 35,986 Accretion and capitalized interest 6,913 6,168 Convertible Debt – end of period 49,067 42,154 Less current portion (49,067 ) - Non-current portion $ - $ 42,154 Since October 2008, the Company has issued $25.0 million of secured convertible debentures to Glencore. The Company has provided security on these debentures covering all of the assets of PolyMet. These debentures bear interest at twelve month U.S. dollar LIBOR plus 4.0% through July 31, 2015, twelve month U.S. dollar LIBOR plus 8.0% through December 31, 2015, and twelve month U.S. dollar LIBOR plus 15.0% beginning January 1, 2016. Interest is compounded quarterly and payable in cash or by increasing the principal amount of the debentures, at Glencore’s option. Since inception, $24.067 million of interest has been accreted and capitalized to the principal amount of the debenture. All borrowing costs were eligible for capitalization and 100% of these costs were capitalized during the eleven months ended December 31, 2017. The due date of these debentures was the earlier of (i) March 31, 2018 or (ii) the availability of at least $100 million of debt or equity financing or (iii) when it is prudent for PolyMet to repay the debt, on which date all principal and interest accrued to such date will be due and payable. Upon receipt of ten days notice of PolyMet’s intention to repay the debentures Glencore can exercise the Exchange Warrant and exchange the initial principal and capitalized interest into common shares of PolyMet at $1.2696 per share. Glencore has the right to exchange some or all of the debentures at any time under the same conversion terms. The Company has the right to require exchange of all of the debentures upon receipt of permits required to commence construction of NorthMet and construction finance acceptable to Glencore under the same conversion terms. Subsequent to December 31, 2017, PolyMet and Glencore agreed to extend the maturity date of the secured convertible debt to March 31, 2019 and reduce the interest rate on the secured convertible debt. See Note 16 for additional details. |
Non-Convertible Debt
Non-Convertible Debt | 11 Months Ended |
Dec. 31, 2017 | |
Disclosure of Non-Convertible Debt [Abstract] | |
Non-Convertible Debt | 9. Non-Convertible Debt Details of Non-Convertible Debt are as follows: 11 months ended December 31, 2017 12 months ended January 31, 2017 IRRRB – beginning of period $ - $ 4,962 Accretion and capitalized interest - 149 Repayment - (5,111 ) IRRRB – end of period (Note 9a) - - Glencore – beginning of period 65,752 43,023 Accretion and capitalized interest 11,599 8,786 Funding, net of costs 14,917 13,943 Glencore – end of period (Note 9b) 92,268 65,752 Total Non-Convertible Debt 92,268 65,752 Less current portion (92,268 ) - Non-current portion $ - $ 65,752 a) IRRRB During the year ended January 31, 2017, the Company fully repaid a $4.0 million initial principal loan, drawn in June 2011 from the Iron Range Resources & Rehabilitation Board (“IRRRB”). The loan was used to exercise the Company’s options to acquire land as part of the proposed land exchange with the USFS authorized by the USFS on January 9, 2017. The loan was secured by the land acquired and carried a fixed interest rate of 5%, compounded annually. Warrants giving the IRRRB the right to purchase 461,286 shares of its common shares at $2.1678 per share expired on June 30, 2016. All borrowing costs were eligible for capitalization and 100% of these costs were capitalized during the year ended January 31, 2017. b) Glencore Since January 2015, the Company has issued $70.0 million of secured non-convertible debentures to Glencore, including $15.0 million during the eleven months ended December 31, 2017. Subsequent to December 31, 2017, $5.0 million was issued as called for under the 2017 Agreements (see Note 7). The Company has provided security on these debentures covering all of the assets of PolyMet. These debentures bear interest at twelve month U.S. dollar LIBOR plus 8.0% through December 31, 2015, and twelve month U.S. dollar LIBOR plus 15.0% beginning January 1, 2016. Interest is compounded quarterly and payable in cash or by increasing the principal amount of the debentures, at Glencore’s option. Since inception, $22.268 million of interest has been accreted and capitalized to the principal amount of the debenture. All borrowing costs were eligible for capitalization and 100% of these costs were capitalized during the eleven months ended December 31, 2017. The due date of these debentures was the earlier of (i) March 31, 2018 or (ii) the availability of at least $100 million of debt or equity financing or (iii) when it is prudent for PolyMet to repay the debt, on which date all principal and interest accrued to such date will be due and payable. Subsequent to December 31, 2017, PolyMet and Glencore agreed to extend the maturity date of the secured non-convertible debt to March 31, 2019, reduce the interest rate on the secured non-convertible debt, and issue secured debentures with a total principal amount of up to $80.0 million. See Note 16 for additional details. |
Share Capital
Share Capital | 11 Months Ended |
Dec. 31, 2017 | |
Disclosure of classes of share capital [abstract] | |
Share Capital | 10. Share Capital a) Issuances for Cash and Land Acquisition On October 18, 2016, the Company issued 25,963,167 units (“Placement Units”) in a private placement to subscribers for gross proceeds of $19.472 million. Each Placement Unit consists of one common share and one half of one common share purchase warrant, each whole warrant exercisable for one common share at a price of $1.00 per share for a period beginning 6 months following the issue date and ending 60 months after the issue date, subject to the Acceleration Triggering Event, and where the exercise price and the number of warrants are subject to conventional anti-dilution provisions. A total of 25,963,167 common shares and 13,641,586 purchase warrants were issued under this transaction, including 660,005 broker warrants issued to the underwriters. The amount attributable to common shares was $15.881 million and the amount attributable to warrants was $2.174 million, which includes the broker warrant fair value of $0.151 million. Transaction costs for the issuance were $1.568 million. The closing triggered customary anti-dilution provisions for the Exchange Warrant. See Note 8 for additional details. On October 28, 2016, the Company issued 14,111,251 units (“Glencore Units”) to Glencore for gross proceeds of $10.583 million pursuant to Glencore’s right to maintain its pro rata ownership following the private placement which closed on October 18, 2016. Each Glencore Unit consists of one common share and one half of one common share purchase warrant, each whole warrant exercisable for one common share at a price of $1.00 per share for a period beginning 6 months following the issue date and ending 60 months after the issue date, subject to the Acceleration Triggering Event, and where the exercise price and the number of warrants are subject to conventional anti-dilution provisions. A total of 14,111,251 common shares and 7,055,626 purchase warrants were issued under this transaction. The amount attributable to common shares was $9.210 million and the amount attributable to warrants was $1.270 million. Transaction costs for the issuance were $0.103 million. During the eleven months ended December 31, 2017 the Company issued 396,616 shares (January 31, 2017 – 241,376 shares) related to land purchase options valued at $0.256 million (January 31, 2017 - $0.200 million). b) Share-Based Compensation The Omnibus Share Compensation Plan (“Omnibus Plan”) was created to align the interests of the Company’s employees, directors, officers and consultants with those of shareholders. Effective May 25, 2007, the Company adopted the Omnibus Plan, which was approved by the Company’s shareholders on June 27, 2007, modified and further ratified and reconfirmed by the Company’s shareholders most recently on July 15, 2015. The Omnibus Plan restricts the award of share options, restricted shares, restricted share units, and other share-based awards to 10% of the common shares issued and outstanding on the grant date, excluding 2,500,000 common shares pursuant to an exemption approved by the Toronto Stock Exchange. During the eleven months ended December 31, 2017, the Company recorded $1.550 million for share-based compensation (January 31, 2017 - $2.518 million) with $1.318 million expensed to share-based compensation (January 31, 2017 - $1.808 million) and $0.232 million capitalized to mineral property, plant and equipment (January 31, 2017 - $0.710 million). The offsetting entries were to equity reserves for $1.111 million (January 31, 2017 - $2.518 million) and payables for $0.439 million (January 31, 2017 - $nil). Total share-based compensation for the eleven months ended December 31, 2017 comprised $0.368 million for share options (January 31, 2017 - $1.490 million), $1.182 million for restricted shares and restricted share units (January 31, 2017 - $0.916 million), and $nil for issuance of unrestricted shares (January 31, 2017 - $0.112 million). Vesting of restricted share units during the eleven months ended December 31, 2017 resulted in $0.365 million being transferred from equity reserves to share capital (January 31, 2017 - $0.694 million). c) Share Options Share options granted may not exceed a term of ten years and are forfeited if the grantee ceases to be an eligible person under the Omnibus Plan. Details of share options are as follows: 11 months ended December 31, 2017 12 months ended January 31, 2017 Number of Options Weighted Average Exercise Price Number of Options Weighted Average Exercise Price Outstanding – beginning of period 20,962,002 1.10 18,975,002 1.29 Granted 2,142,000 0.62 5,502,000 0.76 Expired (1,445,000 ) 2.19 (3,515,000 ) 1.64 Outstanding – end of period 21,659,002 0.98 20,962,002 1.10 The fair value of share options granted was estimated at the date of grant using the Black-Scholes pricing model with the following weighted average assumptions: 11 months ended December 31, 2017 12 months ended January 31, 2017 Risk-free interest rate 1.42% to 1.82% 1.01% to 1.30% Expected dividend yield - - Expected forfeiture rate - - Expected volatility 53.91% to 57.06% 55.88% to 59.17% Expected life in years 2.50 to 5.00 2.50 to 5.00 Weighted average fair value of each option $0.22 to $0.32 $0.26 to $0.38 The expected volatility reflects the Company’s expectation that historical volatility over a period similar to the life of the option is indicative of future trends, which may or may not necessarily be the actual outcome. Details of share options outstanding as at December 31, 2017 are as follows: Range of Exercise Prices Number of options outstanding Number of options exercisable Weighted Average Exercise Price Weighted Average Remaining Life 0.7110 to 0.7977 11,754,000 10,020,667 0.73 3.92 0.8200 to 0.9972 3,839,000 3,789,000 0.97 5.89 1.0058 to 1.5000 4,096,002 4,096,002 1.15 2.78 1.7689 to 2.4886 1,665,000 1,465,000 2.01 2.15 2.6273 to 3.0695 305,000 182,500 2.81 0.74 21,659,002 19,553,169 0.98 3.87 As at December 31, 2017 all outstanding share options had vested and were exercisable, with the exception of 2,105,833, which were scheduled to vest upon completion of specific targets or dates (Permits – 883,333; Construction – 62,500; Production – 200,000; June 2018 – 300,000; June 2019 – 300,000; June 2020 – 300,000; Other – 60,000). The outstanding share options have expiry periods between 0.03 and 9.56 years. d) Restricted Shares and Restricted Share Units Restricted shares and restricted share units granted are forfeited if the grantee ceases to be an eligible person under the Omnibus Plan. Details of restricted shares and restricted share units are as follows: 11 months ended December 31, 2017 12 months ended January 31, 2017 Outstanding - beginning of period 2,618,020 990,471 Issued 1,077,869 2,303,239 Forfeited (8,896 ) - Vested (405,963 ) (675,690 ) Outstanding - end of period 3,281,030 2,618,020 During the eleven months ended December 31, 2017, the Company issued 1,077,869 restricted share units which had a fair value of $0.657 million to be expensed and capitalized over the vesting periods. During the eleven months ended December 31, 2017, there were 8,896 restricted share units forfeited upon individuals ceasing to be eligible persons under the Plan. As at December 31, 2017 outstanding restricted shares and restricted share units were scheduled to vest upon completion of specific targets or dates (Permits – 134,891; Construction Finance – 750,000; Production – 134,890; February 2018 – 1,050,837; January 2019 – 697,353; Other – 513,059). e) Bonus Shares The bonus share incentive plan was established for the Company’s directors and key employees and was approved by the disinterested shareholders at the Company’s shareholders’ meeting held in May 2004. The Company has authorized 3,640,000 bonus shares for the achievement of Milestone 4 representing commencement of commercial production at NorthMet at a time when the Company has not less than 50% ownership interest in NorthMet. At the Company’s Annual General Meeting of shareholders held in June 2008, the disinterested shareholders approved the bonus shares for Milestone 4. Regulatory approval is required prior to issuance of these shares. Details of bonus shares are as follows: 11 months ended December 31, 2017 12 months ended January 31, 2017 Allocated Authorized & Unissued Allocated Authorized & Unissued Outstanding – beginning of period 3,150,000 3,640,000 3,150,000 3,640,000 Outstanding – end of period 3,150,000 3,640,000 3,150,000 3,640,000 The fair value of these unissued bonus shares is being amortized until the estimated date of issuance. During the eleven months ended December 31, 2017, the Company recorded $0.279 million amortization related to Milestone 4 bonus shares (January 31, 2017 – $0.304 million), which was capitalized to Mineral Property, Plant and Equipment. f) Share Purchase Warrants Details of share purchase warrants are as follows: 11 months ended December 31, 2017 12 months ended January 31, 2017 Number of Purchase Warrants Weighted Average Exercise Price Number of Purchase Warrants Weighted Average Exercise Price Outstanding – beginning of period 27,780,213 $ 0.95 6,919,287 $ 0.91 Issued - - 21,322,212 0.99 Expiration (6,458,001 ) (0.82 ) (461,286 ) (2.17 ) Outstanding – end of period 21,322,212 $ 0.99 27,780,213 $ 0.95 The outstanding share purchase warrants have expiry periods between 3.80 years and 3.83 years, subject to acceleration in certain circumstances. Issuances during the prior period related to the October 18, 2016 and October 28, 2016 financing. See Notes 7 and 10a for additional details. Expirations during the prior period related to the IRRRB non-convertible debt. See Note 9a for additional details. Expirations during the current period related to Glencore financing which give Glencore the right to purchase 6,458,001 shares of its common shares at $0.8231 per share until December 31, 2017. Subsequent to December 31, 2017, warrants to purchase 6,458,001 common shares at $0.8231 per share at any time until March 31, 2019 were issued to Glencore. See Note 16 for additional details The fair value of share purchase warrants granted were estimated at the date of grant using the Black-Scholes pricing model with the following weighted average assumptions: 11 months ended December 31, 2017 12 months ended January 31, 2017 Risk-free interest rate - 0.98% to 1.33% Expected dividend yield - - Expected forfeiture rate - - Expected volatility - 55.58% to 58.47% Expected life in years - 2.50 to 5.00 Weighted average fair value of each warrant (1) - $0.19 to $0.40 (1) The fair value of share purchase warrants was used in determining the allocation of net proceeds under the relative fair value method for Placement Units on October 18, 2016 and Glencore Units on October 28, 2016. See Notes 7 and 10a for additional details. The expected volatility reflects the Company’s expectation that historical volatility over a period similar to the life of the warrant is indicative of future trends, which may or may not necessarily be the actual outcome. |
Finance Costs - Net
Finance Costs - Net | 11 Months Ended |
Dec. 31, 2017 | |
Disclosure of Finance Costs - Net [Abstract] | |
Finance Costs - Net | 11. Finance Costs - Net Details of net finance costs are as follows: 11 months ended December 31, 2017 12 months ended January 31, 2017 Debt accretion and capitalized interest: Convertible debt (Notes 7 and 8) $ 6,913 $ 6,168 Non-convertible debt (Notes 7 and 9) 11,599 8,935 Environmental rehabilitation provision accretion (Note 6) 1,776 1,465 Other finance costs 562 1,261 Less: amounts capitalized on qualifying assets (18,512 ) (15,103 ) Finance costs 2,338 2,726 Interest income: Bank deposits (105 ) (54 ) Finance income (105 ) (54 ) Finance costs - net $ 2,233 $ 2,672 |
Related Party Transactions
Related Party Transactions | 11 Months Ended |
Dec. 31, 2017 | |
Related party transactions [abstract] | |
Related Party Transactions | 12. Related Party Transactions The Company conducted transactions with senior management, directors and persons or companies related to these individuals, and paid or accrued amounts, as follows: 11 months ended December 31, 2017 12 months ended January 31, 2017 Salaries and other short-term benefits $ 1,898 $ 1,828 Other long-term benefits 42 44 Share-based payment (1) 836 1,709 Total $ 2,776 $ 3,581 (1) Share-based payment represents the amount capitalized or expensed during the period (see Note 10). There are agreements with key employees containing severance provisions for termination without cause or in the event of a take-over. Other than the President and Chief Executive Officer, PolyMet directors do not have agreements providing for benefits upon termination of their engagement. As a result of Glencore’s ownership of 29.1% it is also a related party. In addition to the transactions described in Notes 7, 8, 9 and 16, the Company has entered into a Technical Services Agreement with Glencore whereby the Company reimburses Glencore for NorthMet technical support costs requested under an agreed scope of work, primarily in detailed project design and mineral processing. During the eleven months ended December 31, 2017, the Company recorded $nil (year ended January 31, 2017 - $0.102 million) for services under this agreement. The Company had also entered into a Financing Advisory Agreement with Glencore whereby the Company reimbursed Glencore for NorthMet financing advisory support costs. During the eleven months ended December 31, 2017, the Company recorded $nil (year ended January 31, 2017 - $0.730 million) for services under this agreement. |
Income Taxes
Income Taxes | 11 Months Ended |
Dec. 31, 2017 | |
Major components of tax expense (income) [abstract] | |
Income Taxes | 13. Income Taxes a) Effective tax rate 11 months ended December 31, 2017 12 months ended January 31, 2017 Loss for the year before taxes $ (10,098 ) $ (9,229 ) Canadian statutory tax rate 27.0 % 26.0 % Expected tax recovery (2,726 ) (2,400 ) Difference in foreign tax rates (84 ) (413 ) Non-deductible items 356 470 Change in tax rate 5,025 - Change in unrecognized deferred tax and other items (2,571 ) 2,343 Income Tax Expense / (Recovery) $ - $ - In December 2017 tax reform was enacted in the United States. The significant changes include a reduction to corporate income tax rates from 35% to 21% effective January 1, 2018 which resulted in a decrease in the Company’s deferred income tax asset by $5.025 million in the current year period. b) Deferred income tax assets and liabilities Deferred income tax assets and liabilities have been recognized in respect of the following items: 11 months ended December 31, 2017 12 months ended January 31, 2017 Non-capital loss carry forward assets $ 27,799 $ 35,992 Mineral property acquisition, exploration and development costs (27,799 ) (35,992 ) Other - - Net deferred income tax liabilities $ - $ - Deferred income tax assets have not yet been recognized in respect of the following items: 11 months ended December 31, 2017 12 months ended January 31, 2017 Non-capital loss carry forward assets $ 22,786 $ 25,619 Capital loss carry forward assets 360 347 Intercompany receivable assets 2,109 2,031 Other assets 1,159 1,059 Unrecognized deferred income tax assets $ 26,414 $ 29,056 As of December 31, 2017, the Company has Canadian non-capital loss carry forwards of approximately $42.8 million (January 31, 2017 - $37.8 million) and US non-capital loss carry forwards of approximately $136.4 million (January 31, 2017 - $125.6 million). The non-capital loss carry forwards are available to reduce future income for tax purposes and expire between 2019 and 2037, except for US state non-capital loss carry forwards which expire between 2018 and 2032. The Company is not recognizing these deferred tax assets because they relate to entities with a history of losses and there is not convincing evidence that future taxable income will enable timely offset. |
Commitments and Contingencies
Commitments and Contingencies | 11 Months Ended |
Dec. 31, 2017 | |
Disclosure of Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 14. Commitments and Contingencies In addition to items described elsewhere in these financial statements, as at December 31, 2017, the Company had firm commitments related to the environmental permitting process, wetland credits, land options, and rent of approximately $1.5 million with $0.4 million due over the next year and the remainder due over five years. The following table lists the known contractual obligations as at December 31, 2017: Contractual Obligations Carrying Value Contractual Cash flows Less than 1 year 1 – 3 years 3 – 5 years More than 5 years Accounts payable and accruals $ 3,630 $ 3,630 $ 3,630 $ - $ - $ - Convertible debt (Note 8) 49,067 51,183 51,183 - - - Non-convertible debt (Note 9) 92,268 96,294 96,294 - - - Firm commitments - 1,529 448 581 500 - Total $ 144,965 $ 152,636 $ 151,555 $ 581 $ 500 $ - |
Financial Instruments and Risk
Financial Instruments and Risk Management | 11 Months Ended |
Dec. 31, 2017 | |
Disclosure of detailed information about financial instruments [abstract] | |
Financial Instruments and Risk Management | 15. Financial Instruments and Risk Management The Company’s financial instruments are classified as loans and receivables, available for sale, and other financial liabilities. The carrying values of each classification of financial instrument as at December 31, 2017 are: Loans and receivables Available for sale Othe financial liabilities Total carrying value Financial assets Cash $ 6,931 $ - $ - $ 6,931 Amounts receivable 82 2,883 - 2,965 Total financial assets $ 7,013 $ 2,883 $ - $ 9,896 Financial liabilities Accounts payable and accruals $ - $ - $ 3,630 $ 3,630 Convertible debt - - 49,067 49,067 Non-convertible debt - - 92,268 92,268 Total financial liabilities $ - $ - $ 144,965 $ 144,965 The carrying values of each classification of financial instrument as at January 31, 2017 are: Loans and receivables Available for sale Other financial liabilities Total carrying value Financial assets Cash $ 18,674 $ - $ - $ 18,674 Amounts receivable 105 2,656 - 2,761 Total financial assets $ 18,779 $ 2,656 $ - $ 21,435 Financial liabilities Accounts payable and accruals $ - $ - $ 3,188 $ 3,188 Convertible debt - - 42,154 42,154 Non-convertible debt - - 65,752 65,752 Total financial liabilities $ - $ - $ 111,094 $ 111,094 Fair Value Measurements The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below: 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 or indirectly. Level 3 – Inputs for the asset or liability that are not based on observable market data. The fair values of cash, current amounts receivable, accounts payable and accruals Risks Arising from Financial Instruments and Risk Management The Company’s activities expose it to a variety of financial risks: market risk (including currency and interest rate), credit risk, and liquidity risk. Reflecting the current stage of development of the Company’s NorthMet Project, the overall risk management program focuses on facilitating the Company’s ability to continue as a going concern and seeks to minimize potential adverse effects on the Company’s ability to execute its business plan. Risk management is the responsibility of executive management. Material risks are identified and monitored and are discussed with the Audit Committee and the Board of Directors. Currency Risk The Company incurs expenditures in Canada and in the United States. The functional and reporting currency of the Company and its subsidiary is the U.S. dollar. Foreign exchange risk arises because the amount of Canadian dollar cash, amounts receivable, or accounts payable and accruals will vary in U.S. dollar terms due to changes in exchange rates. As the majority of the Company’s expenditures are in U.S. dollars, the Company has kept a significant portion of its cash in U.S. dollars. The Company has not hedged its exposure to currency fluctuations as the exposure to currency risk is currently insignificant. Interest Rate Risk Interest rate risk arises from interest paid on floating rate debt and interest received on cash and short-term deposits. The Company has not hedged any of its interest rate risk. The Company currently capitalizes to qualifying assets the majority of interest charges, and therefore the risk exposure is primarily on cash interest payable and net earnings in relation to the subsequent depreciation of capitalized interest charges. The Company was exposed to interest rate risk through the following assets and liabilities: December 31, 2017 January 31, 2017 Cash $ 6,931 $ 18,674 Convertible debt 49,067 42,154 Non-convertible debt $ 92,268 $ 65,752 Based on the above net exposures, as at December 31, 2017, a 1% change interest rates would have impacted the Company’s loss by approximately $0.069 million and carrying value of convertible and non-convertible debt by approximately $1.413 million. Credit Risk Credit risk arises on cash held with banks and financial institutions, as well as credit exposure on outstanding amounts receivable. The maximum exposure to credit risk is equal to the carrying value of the financial assets of $9.896 million. The Company’s cash is primarily held through a large Canadian financial institution. Liquidity Risk Liquidity risk is the risk the Company will not be able to meet its financial obligations as they become due and arises through the excess of financial obligations over available financial assets due at any point in time. The Company’s objective in managing liquidity risk is to maintain sufficient readily available reserves in order to meet its liquidity requirements at any point in time and is achieved by maintaining sufficient cash and managing convertible and non-convertible debt. See additional discussion in Note 1. Capital Management The Company’s capital management objective is to safeguard the Company’s ability to continue as a going concern in order to pursue the development of its mineral property. In the management of capital, the Company includes the components of shareholders’ equity, convertible debt and non-convertible debt. The Company manages the capital structure and makes adjustments to it depending on economic conditions and the rate of anticipated expenditures. To maintain or adjust the capital structure, the Company may attempt to issue new shares, issue new debt, acquire or dispose of assets. The Company has no externally imposed capital requirements. In order to assist in management of its capital requirements, the Company prepares budgets that are updated as necessary depending on various factors. The budgets are approved by the Company’s Board of Directors. Although the Company has the necessary resources to carry out its plans and operations through December 31, 2018, it does not currently have sufficient capital to complete the development of NorthMet and generate future profitable operations and is in discussions to arrange sufficient capital to meet these requirements. See additional discussion in Note 1. |
Subsequent Event
Subsequent Event | 11 Months Ended |
Dec. 31, 2017 | |
Disclosure of non-adjusting events after reporting period [abstract] | |
Subsequent Event | 16. Subsequent Event On March 23, 2018, the Company amended its previous financing arrangement with Glencore. The maturity date of the Convertible Debt and the Non-Convertible Debt was extended to the earlier of March 31, 2019, or the earlier of the availability of at least $100 million of debt or equity financing, or when it is prudent for PolyMet to repay the debt. The interest rate was reduced from 12-month US dollar LIBOR plus 15.0% to 12-month US dollar LIBOR plus 10.0% effective April 1, 2018. The convertibility of the Convertible Debt was extended to March 31, 2019 and 6,458,001 purchase warrants were reissued with an expiration date of March 31, 2019 and an exercise price of $0.8231 per share, both of which were approved by the NYSE American and TSX. All other terms of both the debentures and the warrants described above remain unchanged. In addition, the Company agreed to issue to Glencore secured debentures with a total principal amount of up to $80.0 million at the Company’s option. The debentures bear interest at twelve month US dollar LIBOR plus 10.0% and if issued, are due on the earlier of (i) March 31, 2019 or (ii) the availability of at least $100 million of debt or equity financing or (iii) when it is prudent for PolyMet to repay the debt, on which date all principal and interest accrued to such date will be due and payable. The Tranche P Debenture in the amount of $20.0 million may be issued on or before May 1, 2018. The Tranche Q Debenture in the amount of $15.0 million may be issued on or before August 1, 2018. The Tranche R Debenture in the amount of $20.0 million may be issued on or before September 18, 2018. The Tranche S Debenture in the amount of $15.0 million may be issued on or before November 1, 2018. The Tranche T Debenture in the amount of $10.0 million may be issued on or before December 31, 2018. |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Policies) | 11 Months Ended |
Dec. 31, 2017 | |
Disclosure of Summary of Significant Accounting Policies [Abstract] | |
Statement of Compliance | a) Statement of Compliance The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). The financial statements were approved by the Board of Directors on March 27, 2018. |
Basis of Consolidation and Presentation | b) Basis of Consolidation and Presentation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. Intercompany balances and transactions have been eliminated on consolidation. The consolidated financial statements have been prepared under the historical cost convention, as modified for the revaluation of financial assets classified as available-for-sale. All dollar amounts presented are in United States (“U.S.”) dollars unless otherwise specified. |
Critical Accounting Estimates and Judgments | c) Critical Accounting Estimates and Judgments The preparation of consolidated financial statements in conformity with IFRS requires the use of certain critical accounting estimates. These critical accounting estimates require management to make judgments and estimates that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as at the date of the financial statements. Critical accounting estimates and judgments used in the preparation of the consolidated financial statements are as follows: (i) Determination of mineral reserves Reserves are estimates of the amount of product that can be economically and legally extracted from the Company’s property. In order to estimate reserves, estimates are required about a range of geological, technical and economic factors, including quantities, production techniques, production costs, capital costs, transport costs, demand, prices and exchange rates. Estimating the quantity of reserves requires the size, shape and depth of deposits to be determined by analyzing geological data. This process may require complex and difficult geological judgments to interpret the data. In addition, management will form a view of forecast sales prices, based on current and long-term historical average price trends. Changes in the proven and probable reserves estimates may impact the carrying value of property, plant and equipment, rehabilitation provisions, recognition of deferred tax amounts and depreciation, depletion and amortization. (ii) Impairment of non-financial assets For its mineral property interest, the Company considers both external and internal sources of information in assessing whether there are any indications of impairment. External sources of information the Company considers include changes in the market, economic, and legal environment in which the Company operates that are not within its control and affect the recoverable amount of mineral property interests. Internal sources of information the Company considers include indications of economic performance of the asset. The carrying value of mineral property, plant, and equipment, and intangible at the balance sheet date is described in Notes 4 and 5, respectively. No impairment indicators were identified on the mineral property, plant and equipment or intangible for the eleven months ended December 31, 2017 or twelve months ended January 31, 2017. (iii) Provision for Environmental Rehabilitation Costs Provisions for environmental rehabilitation costs associated with mineral property, plant and equipment, are recognized when the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax risk-free rate that reflects current market assessments of the time value of money. The Company’s estimates of its ultimate environmental rehabilitation liabilities could be affected by changes in regulations, changes in the extent of environmental rehabilitation required, changes in the means of rehabilitation, changes in the extent of responsibility for the financial liability or changes in cost estimates. The operations of the Company may in the future be affected from time to time in varying degrees by changes in environmental regulations, including those for future removal and site restoration costs. Both the likelihood of new regulations and their overall effect upon the Company may vary greatly and are not predictable. The Company’s provision for environmental rehabilitation cost obligations represents management’s best estimate of the present value of the future cash outflows required to settle the liability. See additional discussion in Note 6. |
Foreign Currency Translation | (d) Foreign Currency Translation The U.S. dollar is the functional currency of the Company and its wholly-owned subsidiary. Amounts in the consolidated financial statements are expressed in U.S. dollars unless otherwise stated. Transactions in foreign currencies are translated into the functional currency at the exchange rates at the date of the transactions. Monetary assets and liabilities of the Company’s operations denominated in a currency other than the U.S. dollar are translated using exchange rates prevailing at the balance sheet date. Revenue and expense items are translated at the exchange rates in effect at the date of the underlying transaction. Exchange differences are recognized in net loss in the year in which they arise. |
Cash and Cash Equivalents | (e) Cash and Cash Equivalents The Company considers cash and cash equivalents to include amounts held in banks and highly liquid investments with original maturities of three months or less. |
Financial Assets | (f) Financial Assets All financial assets are initially recorded at fair value and designated upon inception as one of the following four categories: held to maturity, available for sale, loans and receivables or at fair value through profit or loss (“FVTPL”). Financial assets classified as FVTPL are measured at fair value with unrealized gains and losses recognized through profit and loss. Financial assets classified as loans and receivables and held to maturity are measured at amortized cost using the effective interest method less any allowance for impairment. The effective interest method is a method of calculating the amortized cost of a financial asset and of allocating interest income over the relevant period. The effective interest rate is the rate that discounts estimated future cash receipts through the expected life of the financial asset, or, where appropriate, a shorter period. Financial assets classified as available for sale are measured at fair value with unrealized gains and losses recognized in other comprehensive income or loss except when there is objective evidence that the asset is impaired, the cumulative income or loss that had been recognized shall be reclassified from equity to profit or loss as a reclassification adjustment. Transaction costs associated with FVTPL financial assets are expensed as incurred, while transaction costs associated with all other financial assets are included in the initial carrying amount of the asset. See additional discussion in Note 15. |
Mineral Property, Plant and Equipment | (g) Mineral Property, Plant and Equipment Mineral Property Exploration and evaluation costs incurred prior to a Definitive Feasibility Study (“DFS”) are expensed as incurred. Development costs incurred subsequent to a DFS and mineral property acquisition costs are capitalized until the property is placed into production, sold, allowed to lapse or abandoned. As a result of the DFS, NorthMet entered the development stage effective October 1, 2006. The Company has capitalized development expenditures related to NorthMet from that date. Upon commencement of production, related property acquisition and development costs are amortized on a unit of production basis over the estimated proven and probable mineral reserves not to exceed the assets’ useful lives. Plant and Equipment Plant and equipment are recorded at historical cost less accumulated depreciation and if applicable, accumulated impairment losses. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, if it is probable that the future economic benefits of the expenditure will flow to the Company and its cost can be measured reliably. The carrying amount of a replaced part is derecognized. All other repairs and maintenance are charged to the statement of loss and comprehensive loss during the period in which they are incurred. Depreciation of plant and equipment is calculated using the cost of the asset, less its residual value, over the estimated useful life of the asset on a unit of production or straight-line basis, as appropriate. |
Intangible | (h) Intangible Intangible costs and related acquisition costs are capitalized until the wetland credits are used, sold, or abandoned. Wetland credits are used to offset and mitigate wetlands disturbed during construction and operation of NorthMet. As such, costs will be transferred to Mineral Property, Plant and Equipment once placed into service and amortized on a unit of production basis over the estimated proven and probable mineral reserves not to exceed the assets’ useful lives. See additional discussion in Note 5. |
Financial Liabilities | (i) Financial Liabilities All financial liabilities are initially recorded at fair value and designated upon inception as FVTPL or other financial liabilities. Financial liabilities classified as other financial liabilities are initially recognized at fair value less directly attributable transaction costs. After initial recognition, other financial liabilities are subsequently measured at amortized cost using the effective interest method. The effective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that discounts estimated future cash payments through the expected life of the financial liability, or, where appropriate, a shorter period. Financial liabilities classified as FVTPL include financial liabilities held for trading and financial liabilities designated upon initial recognition as FVTPL. Derivatives, including separated embedded derivatives, are also classified as held for trading unless they are designated as effective hedging instruments. Transaction costs on financial liabilities classified as FVTPL are expensed as incurred. At the end of each reporting period subsequent to initial recognition, financial liabilities at FVTPL are measured at fair value, with changes in fair value recognized directly in profit or loss in the period in which they arise. See additional discussion in Note 15. |
Borrowing costs | (j) Borrowing costs Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of the cost of that asset until such time as the asset is substantially complete and ready for its intended use or sale. Where funds have been borrowed specifically to finance an asset, the amount capitalized is the actual borrowing costs incurred. Where the funds used to finance an asset form part of general borrowings, the amount capitalized is calculated using a weighted average of rates applicable to relevant borrowings of the Company during the period. Other borrowing costs not directly attributable to a qualifying asset are expensed in the year incurred. Classification in the cash flow statement is in accordance with the classification of the underlying asset to which those payments were capitalized. |
Share-Based Compensation | (k) Share–Based Compensation All share-based compensation awards made to directors, employees and non-employees are measured and recognized using a fair value based method. For directors and employees, or those providing services similar to employees, the fair value of options is determined using the Black-Scholes pricing model. The fair value of the bonus shares, restricted shares, and restricted share units is calculated using the intrinsic value of the shares at issuance, and is amortised over the vesting period. The fair value of the award is accruedand charged over the vesting period either to operations or mineral property plant and equipment, with the offsetting credit to equity reserves for equity settled awards or liabilities for cash settled awards. If and when share options are ultimately exercised or bonus shares, restricted shares, and restricted share units vest, the applicable amounts are transferred to share capital. Certain awards vest upon achievement of non-market performance conditions. On a quarterly basis, management assesses the probability of achieving those performance conditions using the best available information, and estimates the appropriate vesting period. When the Company amends the terms of share options, the incremental change in the fair value of the options due to the amendment, as determined using the Black-Scholes pricing model, is recognized over the vesting period in the statement of loss or capitalized as appropriate. |
Share Purchase Warrants | (l) Share Purchase Warrants The Company issues share purchase warrants in connection with certain equity transactions. The fair value of the warrants, as determined using the Black-Scholes pricing model or fair value of goods or services received, is credited to equity reserves. The recorded value of share purchase warrants is transferred to share capital upon exercise. |
Loss Per Share | (m) Loss Per Share Loss per share is computed by dividing the loss for the year by the weighted average number of common shares outstanding during the year. Basic and diluted loss per share for each year presented are the same due to the effect of potential issuances of shares under warrant or share option agreements being, in total, anti-dilutive. |
Income Taxes and Deferred Taxes | (n) Income Taxes and Deferred Taxes The income tax expense or benefit for the year consists of two components: current and deferred. Current tax is the expected tax payable or receivable on the taxable profit or loss for the year. Current tax is calculated using tax rates and laws that were enacted or substantively enacted at the balance sheet date in each of the jurisdictions and include any adjustments for taxes payable or recovery in respect of prior periods. Taxable profit or loss differs from profit or loss as reported in the Consolidated Statements of Loss and Comprehensive Loss because of items of income or expense that are taxable or deductible in other years, and items that are never taxable or deductible. Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax basis used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences not eligible for offset. Deferred tax assets are generally recognized for all deductible temporary differences, loss carry forwards and tax credit carry forwards to the extent that it is probable that taxable profits will be available against which they can be utilized. To the extent that the Company does not consider it to be probable that taxable profits will be available against which deductible temporary differences, loss carry forwards, and tax credit carry forwards can be utilized, a deferred tax asset is not recognized. |
Adoption of New or Amended Accounting Standards | (o) Adoption of New or Amended Accounting Standards On February 1, 2017, the Company adopted the following new or amended accounting standards that were previously issued by the IASB. Certain other new standards and interpretations have been issued but are not expected to have a material impact on the Company’s financial statements and are therefore not discussed below. IAS 7 – Statement of Cash Flows IAS 7 was amended to require disclosures about changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes and amendments are effective for annual periods beginning on or after January 1, 2017. |
Future Accounting Standards | (p) Future Accounting Standards Information on new standards, amendments and interpretations effective for annual periods beginning on or after January 1, 2018 and that are expected to be relevant to the Company’s financial statements is provided below. Certain other new standards and interpretations have been issued but are not expected to have a material impact on the Company’s financial statements and are therefore not discussed below. IFRS 9 – Financial Instruments IFRS 9 addresses the classification, measurement and recognition of financial assets and financial liabilities. This standard replaces parts of IAS 39 - Financial Instruments: Recognition and Measurement IFRS 9 requires financial assets to be classified into two measurement categories: those measured at fair value and those measured at amortized cost. The determination is made at initial recognition. On transition, the Company’s investments classified as available-for-sale (EIP receivable- Note 5) will be re-designated as FVTPL financial instruments, and its revaluation adjustments will be recorded in the statement of loss instead of through other comprehensive loss. The Company expects adoption will result in an adjustment to the opening deficit and accumulated other comprehensive loss for cumulative gains/losses on the EIP receivable (see Note 5) and that the adjustment does not have a significant impact on the Company’s financial statements. For financial liabilities, the standard retains most of the IAS 39 requirements, except as it relates to modifications of liabilities. Under IAS 39, when an entity modified a financial liability, it would decide whether this modification was significant enough to constitute an extinguishment. If the modification was considered an extinguishment of the initial debt, the new modified debt was recorded at fair value and a gain/loss recognized in income for the difference between the carrying amount of the old debt and the new debt. This extinguishment accounting remains the same under IFRS 9. However, accounting under IFRS 9 differs where the change was not significant enough to be an extinguishment. Under IAS 39 modifications would not lead to an immediate income charge as the cash flows of the modified debt would be discounted using the revised effective interest rate over the remaining term of the debt. However, under IFRS 9, the cash flows under the modified debt should be re-discounted using the original effective interest rate of the instrument. The Company expects adoption will result in an adjustment to the opening deficit and carrying value of its convertible and non-convertible debt due to several prior modifications to the outstanding debentures (see Notes 8 and 9). The Company is assessing the impact this adjustment will have on the Company’s financial statements. IFRS 9 also introduces a single expected credit loss impairment model, which is based on changes in credit quality since initial recognition. The Company does not expect this to have a significant impact on the Company’s financial statements upon adoption. The new standard is effective for annual periods beginning on or after January 1, 2018 and the Company will adopt IFRS 9 effective January 1, 2018. IFRS 16 – Leases IFRS 16 replaces IAS 17 - Leases IAS 17 - Leases IAS 17 - Leases The new standard will be effective for annual periods beginning on or after January 1, 2019 with early adoption permitted and the Company plans to adopt IFRS 16 effective January 1, 2018. IFRS 15 – Revenue from Contracts with Customers IFRS 15 replaces IAS 18 - Revenue IAS 11 - Construction Contracts |
Mineral Property, Plant and E23
Mineral Property, Plant and Equipment (Tables) | 11 Months Ended |
Dec. 31, 2017 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Schedule of Mineral Property, Plant, and Equipment | Details of Mineral Property, Plant, and Equipment are as follows: Net Book Value NorthMet Other fixed assets Total Balance at January 31, 2016 $ 321,559 90 321,649 Additions 38,767 89 38,856 Changes to rehabilitation provision (Note 6) 4,467 - 4,467 Amortization - (59 ) (59 ) Balance at January 31, 2017 364,793 120 364,913 Additions 39,474 32 39,506 Disposals (Note 5) (2,789 ) - (2,789 ) Changes to rehabilitation provision (Note 6) (6,363 ) - (6,363 ) Amortization - (62 ) (62 ) Balance at December 31, 2017 $ 395,115 $ 90 $ 395,205 NorthMet December 31, 2017 January 31, 2017 Mineral property acquisition and interest costs $ 86,863 $ 68,352 Mine plan and development 50,250 47,833 Environmental 122,396 111,421 Consulting and wages 52,965 49,715 Reclamation and remediation (Note 6) 60,289 66,652 Site activities 21,403 19,871 Mine equipment 949 949 Total $ 395,115 $ 364,793 |
Intangible and EIP Receivable (
Intangible and EIP Receivable (Tables) | 11 Months Ended |
Dec. 31, 2017 | |
Disclosure of detailed information about intangible assets [abstract] | |
Schedule of Intangible Assets | Details of the Intangible are as follows: 11 months ended December 31, 2017 12 months ended January 31, 2017 Intangible – beginning of period $ 1,888 $ 1,888 Additions 3,130 - Disposals (1,888 ) - Intangible – end of period $ 3,130 $ 1,888 Details of the EIP receivable are as follows: 11 months ended December 31, 2017 12 months ended January 31, 2017 EIP Receivable – beginning of period $ 2,656 $ 2,517 Initial recognition 564 - Collections (171 ) (82 ) Gain (Loss) on re-measurement (166 ) 221 EIP Receivable – end of period 2,883 2,656 Less current portion (350 ) (644 ) Non-current portion $ 2,533 $ 2,012 |
Environmental Rehabilitation 25
Environmental Rehabilitation Provision (Tables) | 11 Months Ended |
Dec. 31, 2017 | |
Environmental Rehabilitation Provision Narrative Details | |
Schedule of Environmental Rehabilitation Provision | Details of Environmental Rehabilitation Provision are as follows: 11 months ended December 31, 2017 12 months ended January 31, 2017 Environmental Rehabilitation Provision – beginning of period $ 70,626 $ 65,684 Change in estimate (6,363 ) 4,467 Liabilities discharged (637 ) (990 ) Accretion expense 1,776 1,465 Environmental Rehabilitation Provision – end of period 65,402 70,626 Less current portion (1,266 ) (781 ) Non-current portion $ 64,136 $ 69,845 |
Convertible Debt (Tables)
Convertible Debt (Tables) | 11 Months Ended |
Dec. 31, 2017 | |
Disclosure of Convertible Debt [Abstract] | |
Schedule of Convertible Debt | Details of the Convertible Debt are as follows: 11 months ended December 31, 2017 12 months ended January 31, 2017 Convertible Debt – beginning of period $ 42,154 $ 35,986 Accretion and capitalized interest 6,913 6,168 Convertible Debt – end of period 49,067 42,154 Less current portion (49,067 ) - Non-current portion $ - $ 42,154 |
Non Convertible Debt (Tables)
Non Convertible Debt (Tables) | 11 Months Ended |
Dec. 31, 2017 | |
Disclosure of Non-Convertible Debt [Abstract] | |
Schedule of Non Convertible Debt | Details of Non-Convertible Debt are as follows: 11 months ended December 31, 2017 12 months ended January 31, 2017 IRRRB – beginning of period $ - $ 4,962 Accretion and capitalized interest - 149 Repayment - (5,111 ) IRRRB – end of period (Note 9a) - - Glencore – beginning of period 65,752 43,023 Accretion and capitalized interest 11,599 8,786 Funding, net of costs 14,917 13,943 Glencore – end of period (Note 9b) 92,268 65,752 Total Non-Convertible Debt 92,268 65,752 Less current portion (92,268 ) - Non-current portion $ - $ 65,752 |
Share Capital and Reserves (Tab
Share Capital and Reserves (Tables) | 11 Months Ended |
Dec. 31, 2017 | |
Disclosure of classes of share capital [line items] | |
Schedule of Stock Options Activities | Details of share options are as follows: 11 months ended December 31, 2017 12 months ended January 31, 2017 Number of Options Weighted Average Exercise Price Number of Options Weighted Average Exercise Price Outstanding – beginning of period 20,962,002 1.10 18,975,002 1.29 Granted 2,142,000 0.62 5,502,000 0.76 Expired (1,445,000 ) 2.19 (3,515,000 ) 1.64 Outstanding – end of period 21,659,002 0.98 20,962,002 1.10 |
Schedule of Fair Value of Options Granted Using Black-scholes Option Pricing Model | The fair value of share options granted was estimated at the date of grant using the Black-Scholes pricing model with the following weighted average assumptions: 11 months ended December 31, 2017 12 months ended January 31, 2017 Risk-free interest rate 1.42% to 1.82% 1.01% to 1.30% Expected dividend yield - - Expected forfeiture rate - - Expected volatility 53.91% to 57.06% 55.88% to 59.17% Expected life in years 2.50 to 5.00 2.50 to 5.00 Weighted average fair value of each option $0.22 to $0.32 $0.26 to $0.38 |
Schedule of Stock Options Outstanding and Exercisable | Details of share options outstanding as at December 31, 2017 are as follows: Range of Exercise Prices Number of options outstanding Number of options exercisable Weighted Average Exercise Price Weighted Average Remaining Life 0.7110 to 0.7977 11,754,000 10,020,667 0.73 3.92 0.8200 to 0.9972 3,839,000 3,789,000 0.97 5.89 1.0058 to 1.5000 4,096,002 4,096,002 1.15 2.78 1.7689 to 2.4886 1,665,000 1,465,000 2.01 2.15 2.6273 to 3.0695 305,000 182,500 2.81 0.74 21,659,002 19,553,169 0.98 3.87 |
Schedule of Bonus Share | Details of bonus shares are as follows: 11 months ended December 31, 2017 12 months ended January 31, 2017 Allocated Authorized & Unissued Allocated Authorized & Unissued Outstanding – beginning of period 3,150,000 3,640,000 3,150,000 3,640,000 Outstanding – end of period 3,150,000 3,640,000 3,150,000 3,640,000 |
Warrant [Member] | |
Disclosure of classes of share capital [line items] | |
Schedule of Stock Options Activities | Details of share purchase warrants are as follows: 11 months ended December 31, 2017 12 months ended January 31, 2017 Number of Purchase Warrants Weighted Average Exercise Price Number of Purchase Warrants Weighted Average Exercise Price Outstanding – beginning of period 27,780,213 $ 0.95 6,919,287 $ 0.91 Issued - - 21,322,212 0.99 Expiration (6,458,001 ) (0.82 ) (461,286 ) (2.17 ) Outstanding – end of period 21,322,212 $ 0.99 27,780,213 $ 0.95 |
Schedule of Fair Value of Options Granted Using Black-scholes Option Pricing Model | The fair value of share purchase warrants granted were estimated at the date of grant using the Black-Scholes pricing model with the following weighted average assumptions: 11 months ended December 31, 2017 12 months ended January 31, 2017 Risk-free interest rate - 0.98% to 1.33% Expected dividend yield - - Expected forfeiture rate - - Expected volatility - 55.58% to 58.47% Expected life in years - 2.50 to 5.00 Weighted average fair value of each warrant (1) - $0.19 to $0.40 |
RestrictedShareUnit (RSU) [Member] | |
Disclosure of classes of share capital [line items] | |
Schedule of Stock Options Activities | Details of restricted shares and restricted share units are as follows: 11 months ended December 31, 2017 12 months ended January 31, 2017 Outstanding - beginning of period 2,618,020 990,471 Issued 1,077,869 2,303,239 Forfeited (8,896 ) - Vested (405,963 ) (675,690 ) Outstanding - end of period 3,281,030 2,618,020 |
Finance Costs - Net (Tables)
Finance Costs - Net (Tables) | 11 Months Ended |
Dec. 31, 2017 | |
Disclosure of Finance Costs - Net [Abstract] | |
Schedule of Finance Costs Net | Details of net finance costs are as follows: 11 months ended December 31, 2017 12 months ended January 31, 2017 Debt accretion and capitalized interest: Convertible debt (Notes 7 and 8) $ 6,913 $ 6,168 Non-convertible debt (Notes 7 and 9) 11,599 8,935 Environmental rehabilitation provision accretion (Note 6) 1,776 1,465 Other finance costs 562 1,261 Less: amounts capitalized on qualifying assets (18,512 ) (15,103 ) Finance costs 2,338 2,726 Interest income: Bank deposits (105 ) (54 ) Finance income (105 ) (54 ) Finance costs - net $ 2,233 $ 2,672 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 11 Months Ended |
Dec. 31, 2017 | |
Related party transactions [abstract] | |
Schedule of Key Management Personnel Compensation | The Company conducted transactions with senior management, directors and persons or companies related to these individuals, and paid or accrued amounts, as follows: 11 months ended December 31, 2017 12 months ended January 31, 2017 Salaries and other short-term benefits $ 1,898 $ 1,828 Other long-term benefits 42 44 Share-based payment (1) 836 1,709 Total $ 2,776 $ 3,581 (1) Share-based payment represents the amount capitalized or expensed during the period (see Note 10). |
Income Taxes (Tables)
Income Taxes (Tables) | 11 Months Ended |
Dec. 31, 2017 | |
Major components of tax expense (income) [abstract] | |
Schedule of Reconciliation of Effective Income Tax Rate | The effective tax rate differs from the cumulative Canadian federal and provincial income tax rate due to the following: 11 months ended December 31, 2017 12 months ended January 31, 2017 Loss for the year before taxes $ (10,098 ) $ (9,229 ) Canadian statutory tax rate 27.0 % 26.0 % Expected tax recovery (2,726 ) (2,400 ) Difference in foreign tax rates (84 ) (413 ) Non-deductible items 356 470 Change in tax rate 5,025 - Change in unrecognized deferred tax and other items (2,571 ) 2,343 Income Tax Expense / (Recovery) $ - $ - |
Schedule of Components of Deferred Tax Assets | Deferred income tax assets and liabilities have been recognized in respect of the following items: 11 months ended December 31, 2017 12 months ended January 31, 2017 Non-capital loss carry forward assets $ 27,799 $ 35,992 Mineral property acquisition, exploration and development costs (27,799 ) (35,992 ) Other - - Net deferred income tax liabilities $ - $ - |
Schedule of Unrecognized Deductible Temporary Differences and Unused Tax Losses | Deferred income tax assets have not yet been recognized in respect of the following items: 11 months ended December 31, 2017 12 months ended January 31, 2017 Non-capital loss carry forward assets $ 22,786 $ 25,619 Capital loss carry forward assets 360 347 Intercompany receivable assets 2,109 2,031 Other assets 1,159 1,059 Unrecognized deferred income tax assets $ 26,414 $ 29,056 |
Commitments (Tables)
Commitments (Tables) | 11 Months Ended |
Dec. 31, 2017 | |
Disclosure of Commitments and Contingencies [Abstract] | |
Schedule of Contractual Obligations | The following table lists the known contractual obligations as at December 31, 2017: Contractual Obligations Carrying Value Contractual Cash flows Less than 1 year 1 – 3 years 3 – 5 years More than 5 years Accounts payable and accruals $ 3,630 $ 3,630 $ 3,630 $ - $ - $ - Convertible debt (Note 8) 49,067 51,183 51,183 - - - Non-convertible debt (Note 9) 92,268 96,294 96,294 - - - Firm commitments - 1,529 448 581 500 - Total $ 144,965 $ 152,636 $ 151,555 $ 581 $ 500 $ - |
Financial Instruments and Ris33
Financial Instruments and Risk Management (Tables) | 11 Months Ended |
Dec. 31, 2017 | |
Disclosure of detailed information about financial instruments [abstract] | |
Schedule of Financial Instrument | The carrying values of each classification of financial instrument as at December 31, 2017 are: Loans and receivables Available for sale Othe financial liabilities Total carrying value Financial assets Cash $ 6,931 $ - $ - $ 6,931 Amounts receivable 82 2,883 - 2,965 Total financial assets $ 7,013 $ 2,883 $ - $ 9,896 Financial liabilities Accounts payable and accruals $ - $ - $ 3,630 $ 3,630 Convertible debt - - 49,067 49,067 Non-convertible debt - - 92,268 92,268 Total financial liabilities $ - $ - $ 144,965 $ 144,965 The carrying values of each classification of financial instrument as at January 31, 2017 are: Loans and receivables Available for sale Other financial liabilities Total carrying value Financial assets Cash $ 18,674 $ - $ - $ 18,674 Amounts receivable 105 2,656 - 2,761 Total financial assets $ 18,779 $ 2,656 $ - $ 21,435 Financial liabilities Accounts payable and accruals $ - $ - $ 3,188 $ 3,188 Convertible debt - - 42,154 42,154 Non-convertible debt - - 65,752 65,752 Total financial liabilities $ - $ - $ 111,094 $ 111,094 |
Schedule of Interest Rate Risk | The Company was exposed to interest rate risk through the following assets and liabilities: December 31, 2017 January 31, 2017 Cash $ 6,931 $ 18,674 Convertible debt 49,067 42,154 Non-convertible debt $ 92,268 $ 65,752 |
Mineral Property Agreements (Na
Mineral Property Agreements (Narrative) (Details) $ in Thousands | 11 Months Ended |
Dec. 31, 2017USD ($) | |
LMC Minerals Year 1 [Member] | |
Disclosure of acquired receivables [line items] | |
Minimum annual lease payments | $ 3 |
LMC Minerals Year 2 [Member] | |
Disclosure of acquired receivables [line items] | |
Minimum annual lease payments | 3 |
LMC Minerals Year 3 [Member] | |
Disclosure of acquired receivables [line items] | |
Minimum annual lease payments | 3 |
LMC Minerals Year 4 [Member] | |
Disclosure of acquired receivables [line items] | |
Minimum annual lease payments | 3 |
LMC Minerals Year 5+ [Member] | |
Disclosure of acquired receivables [line items] | |
Minimum annual lease payments | 30 |
RGGS Land & Minerals Ltd., L.P. [Member] | |
Disclosure of acquired receivables [line items] | |
Annual lease payments | $ 150 |
Notice period for termination of lease agreement | 90 days |
Paid Through | Dec. 31, 2018 |
Initial term of renewable lease | 20 years |
Recovery of advance royalty payments | $ 2,825 |
LMC Minerals [Member] | |
Disclosure of acquired receivables [line items] | |
Recovery of advance royalty payments | $ 189 |
Bottom of range [Member] | |
Disclosure of acquired receivables [line items] | |
Percentage of future production royalties payable | 3.00% |
Top of range [Member] | |
Disclosure of acquired receivables [line items] | |
Percentage of future production royalties payable | 5.00% |
Mineral Property, Plant and E35
Mineral Property, Plant and Equipment (Schedule of Mineral Property, Plant, and Equipment) (Details) - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended |
Dec. 31, 2017 | Jan. 31, 2017 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | $ 364,913 | $ 321,649 |
Additions | 39,506 | 38,856 |
Disposals (Note 5) | (2,789) | |
Changes to rehabilitation provision (Note 6) | (6,363) | 4,467 |
Amortization | (62) | (59) |
Ending Balance | 395,205 | 364,913 |
NorthMet [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 364,793 | 321,559 |
Additions | 39,474 | 38,767 |
Disposals (Note 5) | (2,789) | |
Changes to rehabilitation provision (Note 6) | (6,363) | 4,467 |
Amortization | ||
Ending Balance | 395,115 | 364,793 |
Other Fixed Assets [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 120 | 90 |
Additions | 32 | 89 |
Disposals (Note 5) | ||
Changes to rehabilitation provision (Note 6) | ||
Amortization | (62) | (59) |
Ending Balance | $ 90 | $ 120 |
Mineral Property, Plant and E36
Mineral Property, Plant and Equipment (Schedule of Mineral Property, Plant, and Equipment NorthMet) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Jan. 31, 2017 | Jan. 31, 2016 |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Total | $ 395,205 | $ 364,913 | $ 321,649 |
NorthMet [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Mineral property acquisition and interest costs | 86,863 | 68,352 | |
Mine plan and development | 50,250 | 47,833 | |
Environmental | 122,396 | 111,421 | |
Consulting and wages | 52,965 | 49,715 | |
Reclamation and remediation (Note 6) | 60,289 | 66,652 | |
Site activities | 21,403 | 19,871 | |
Mine equipment | 949 | 949 | |
Total | $ 395,115 | $ 364,793 | $ 321,559 |
Mineral Property, Plant and E37
Mineral Property, Plant and Equipment (Narrative) (Details) - Erie Plant [Member] - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended |
Dec. 31, 2017 | Jan. 31, 2017 | |
Statement Line Items [Line Items] | ||
Amount paid for acquisition in associated infrastructure | $ 18,900 | |
Fair market value shares | $ 13,953 | |
Shares issued for acquisition | 9,200,547 | |
Borrowing costs | $ 18,512 | $ 15,103 |
Intangible and EIP Receivable38
Intangible and EIP Receivable (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 11 Months Ended | |
Apr. 30, 2015 | Mar. 31, 2012 | Dec. 31, 2017 | |
AG for Waterfowl Option on Intangible [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Warrant available to purchase common share | 1,249,315 | ||
Share price | $ 1.3007 | ||
Maturity date | Feb. 28, 2017 | Dec. 31, 2015 | |
EIP Receivable Discount Rate | 9.75% | ||
EIP Receivable Recovery Period | 15 years | ||
EIP Receivable Initial Recognition | $ 564 | ||
Loss incurred | $ 1,324 | ||
EIP Option on Intangible [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Loss incurred | $ 469 | ||
Annual option payments | 250 | ||
EIP Option on Intangible [Member] | Land [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Initial recognition | 2,320 | ||
EIP Option on Intangible [Member] | Cash [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Initial recognition | $ 810 |
Intangible and EIP Receivable39
Intangible and EIP Receivable (Schedule of Intangible Assets) (Details) - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended |
Dec. 31, 2017 | Jan. 31, 2017 | |
Disclosure of detailed information about intangible assets [line items] | ||
Balance at beginning year | $ 1,888 | $ 1,888 |
Additions | 3,130 | |
Disposals | (1,888) | |
Balance at end of year | 3,130 | 1,888 |
EIP Receivable [Member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Balance at beginning year | 2,656 | 2,517 |
Initial recognition | 564 | |
Collections | (171) | (82) |
Gain (Loss) on re-measurement | (166) | 221 |
Balance at end of year | 2,883 | 2,656 |
Less current portion | (350) | (644) |
Non-current portion | $ 2,533 | $ 2,012 |
Environmental Rehabilitation 40
Environmental Rehabilitation Provision (Schedule of Environmental Rehabilitation Provision) (Details) - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended |
Dec. 31, 2017 | Jan. 31, 2017 | |
Environmental Rehabilitation Provision Narrative Details | ||
Environmental Rehabilitation Provision - beginning of period | $ 70,626 | $ 65,684 |
Change in estimate | (6,363) | 4,467 |
Liabilities discharged | (637) | (990) |
Accretion expense | 1,776 | 1,465 |
Environmental Rehabilitation Provision - end of period | 65,402 | 70,626 |
Less current portion | (1,266) | (781) |
Non-current portion | $ 64,136 | $ 69,845 |
Environmental Rehabilitation 41
Environmental Rehabilitation Provision (Narrative) (Details) - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended |
Dec. 31, 2017 | Jan. 31, 2017 | |
Environmental Rehabilitation Provision Narrative Details | ||
Estimated environmental rehabilitation provision | $ 65,402 | $ 70,626 |
Estimated cash flows at present day cost | $ 73,301 | $ 79,249 |
Projected inflation rate | 2.00% | 2.00% |
Market risk-free interest rate | 2.58% | 2.78% |
Glencore Financing (Details)
Glencore Financing (Details) - USD ($) | Mar. 23, 2018 | Jan. 18, 2018 | Sep. 18, 2017 | Sep. 14, 2017 | Oct. 28, 2016 | Sep. 14, 2016 | Jul. 26, 2016 | Jul. 01, 2016 | Jun. 03, 2016 | Dec. 31, 2016 | Oct. 28, 2016 | Oct. 18, 2016 | Dec. 31, 2015 | Jul. 31, 2015 | Dec. 31, 2017 | Mar. 31, 2019 | Dec. 31, 2018 | Jan. 31, 2017 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 |
Statement Line Items [Line Items] | ||||||||||||||||||||||
Common share issued | 396,616 | 241,376 | ||||||||||||||||||||
Principal secured debentures amount | $ 20,000,000 | |||||||||||||||||||||
Common stock called by warrant | 625,000 | |||||||||||||||||||||
Interest rate basis | LIBOR plus 15.0% | |||||||||||||||||||||
Availability of debt or equity financing | $ 100,000,000 | |||||||||||||||||||||
Price per share | $ 0.7797 | |||||||||||||||||||||
Transaction costs for financing | $ 83,000 | |||||||||||||||||||||
Warrant [Member] | ||||||||||||||||||||||
Statement Line Items [Line Items] | ||||||||||||||||||||||
Common share issued | 7,055,626 | 7,055,626 | 13,641,586 | |||||||||||||||||||
Common stock called by warrant | 6,458,001 | |||||||||||||||||||||
Proceeds from common share | $ 1,270,000 | $ 2,174,000 | ||||||||||||||||||||
Price per share | $ 0.8231 | |||||||||||||||||||||
Events after reporting period [Member] | ||||||||||||||||||||||
Statement Line Items [Line Items] | ||||||||||||||||||||||
Common stock called by warrant | 6,458,001 | |||||||||||||||||||||
Availability of debt or equity financing | $ 100,000,000 | |||||||||||||||||||||
Price per share | $ 0.8231 | |||||||||||||||||||||
Glencore Convertible Debt [Member] | ||||||||||||||||||||||
Statement Line Items [Line Items] | ||||||||||||||||||||||
Principal secured debentures amount | $ 25,000,000 | |||||||||||||||||||||
Interest rate basis | LIBOR plus 15.0% | LIBOR plus 8.0% | LIBOR plus 4.0% | |||||||||||||||||||
Availability of debt or equity financing | 100,000,000 | |||||||||||||||||||||
Glencore Non-Convertible Debt [Member] | ||||||||||||||||||||||
Statement Line Items [Line Items] | ||||||||||||||||||||||
Interest rate basis | LIBOR plus 15.0% | LIBOR plus 8.0% | ||||||||||||||||||||
Availability of debt or equity financing | $ 100,000,000 | |||||||||||||||||||||
PolyMet [Member] | ||||||||||||||||||||||
Statement Line Items [Line Items] | ||||||||||||||||||||||
Common share issued | 92,836,072 | 92,836,072 | ||||||||||||||||||||
Minority interest percentage | 29.10% | |||||||||||||||||||||
Warrant exercise price | $ 1.2696 | |||||||||||||||||||||
Exercise of warrants | 38,660,854 | |||||||||||||||||||||
Common stock called by warrant | 625,000 | |||||||||||||||||||||
Percentage of ownership | 100.00% | |||||||||||||||||||||
Fair value of warrants | $ 250,000 | |||||||||||||||||||||
Price per share | $ 0.7797 | $ 1.2696 | ||||||||||||||||||||
PolyMet [Member] | Events after reporting period [Member] | ||||||||||||||||||||||
Statement Line Items [Line Items] | ||||||||||||||||||||||
Principal secured debentures amount | $ 80,000,000 | |||||||||||||||||||||
NorthMet [Member] | ||||||||||||||||||||||
Statement Line Items [Line Items] | ||||||||||||||||||||||
Common stock called by warrant | 7,055,626 | |||||||||||||||||||||
Price per share | $ 1 | |||||||||||||||||||||
Glencore Units [Member] | ||||||||||||||||||||||
Statement Line Items [Line Items] | ||||||||||||||||||||||
Common share issued | 14,111,251 | 14,111,251 | ||||||||||||||||||||
Warrant exercise price | $ 1 | |||||||||||||||||||||
Proceeds from common share | $ 10,583,000 | |||||||||||||||||||||
Tranche One [Member] | Glencore Convertible Debt [Member] | ||||||||||||||||||||||
Statement Line Items [Line Items] | ||||||||||||||||||||||
Principal secured debentures amount | $ 25,000,000 | |||||||||||||||||||||
Tranche One [Member] | Glencore Non-Convertible Debt [Member] | ||||||||||||||||||||||
Statement Line Items [Line Items] | ||||||||||||||||||||||
Principal secured debentures amount | $ 11,000,000 | $ 30,000,000 | 20,000,000 | |||||||||||||||||||
Tranche One [Member] | Glencore Non-Convertible Debt [Member] | Events after reporting period [Member] | ||||||||||||||||||||||
Statement Line Items [Line Items] | ||||||||||||||||||||||
Principal secured debentures amount | $ 80,000,000 | |||||||||||||||||||||
Tranche One [Member] | PolyMet [Member] | ||||||||||||||||||||||
Statement Line Items [Line Items] | ||||||||||||||||||||||
Investments in associates | $ 20,000,000 | $ 30,000,000 | $ 25,000,000 | |||||||||||||||||||
Tranche Two [Member] | Glencore Convertible Debt [Member] | ||||||||||||||||||||||
Statement Line Items [Line Items] | ||||||||||||||||||||||
Principal secured debentures amount | 25,000,000 | |||||||||||||||||||||
Tranche Two [Member] | Glencore Non-Convertible Debt [Member] | ||||||||||||||||||||||
Statement Line Items [Line Items] | ||||||||||||||||||||||
Principal secured debentures amount | 14,000,000 | 30,000,000 | 20,000,000 | |||||||||||||||||||
Tranche Two [Member] | Glencore Non-Convertible Debt [Member] | Events after reporting period [Member] | ||||||||||||||||||||||
Statement Line Items [Line Items] | ||||||||||||||||||||||
Principal secured debentures amount | 80,000,000 | |||||||||||||||||||||
Tranche Two [Member] | PolyMet [Member] | ||||||||||||||||||||||
Statement Line Items [Line Items] | ||||||||||||||||||||||
Investments in associates | 30,000,000 | $ 25,000,000 | ||||||||||||||||||||
Tranche Three [Member] | Glencore Convertible Debt [Member] | ||||||||||||||||||||||
Statement Line Items [Line Items] | ||||||||||||||||||||||
Principal secured debentures amount | 25,000,000 | |||||||||||||||||||||
Tranche Three [Member] | Glencore Non-Convertible Debt [Member] | ||||||||||||||||||||||
Statement Line Items [Line Items] | ||||||||||||||||||||||
Principal secured debentures amount | 14,000,000 | 30,000,000 | ||||||||||||||||||||
Tranche Three [Member] | Glencore Non-Convertible Debt [Member] | Events after reporting period [Member] | ||||||||||||||||||||||
Statement Line Items [Line Items] | ||||||||||||||||||||||
Principal secured debentures amount | 80,000,000 | |||||||||||||||||||||
Tranche Three [Member] | PolyMet [Member] | ||||||||||||||||||||||
Statement Line Items [Line Items] | ||||||||||||||||||||||
Investments in associates | $ 30,000,000 | |||||||||||||||||||||
Rights Offering [Member] | PolyMet [Member] | ||||||||||||||||||||||
Statement Line Items [Line Items] | ||||||||||||||||||||||
Investments in associates | $ 20,960,000 | |||||||||||||||||||||
Private Placement [Member] | PolyMet [Member] | ||||||||||||||||||||||
Statement Line Items [Line Items] | ||||||||||||||||||||||
Investments in associates | 10,583,000 | |||||||||||||||||||||
Tranche Four [Member] | Glencore Convertible Debt [Member] | ||||||||||||||||||||||
Statement Line Items [Line Items] | ||||||||||||||||||||||
Principal secured debentures amount | $ 25,000,000 | |||||||||||||||||||||
Tranche Four [Member] | Glencore Non-Convertible Debt [Member] | ||||||||||||||||||||||
Statement Line Items [Line Items] | ||||||||||||||||||||||
Principal secured debentures amount | 14,000,000 | $ 30,000,000 | ||||||||||||||||||||
Tranche Four [Member] | Glencore Non-Convertible Debt [Member] | Events after reporting period [Member] | ||||||||||||||||||||||
Statement Line Items [Line Items] | ||||||||||||||||||||||
Principal secured debentures amount | 80,000,000 | |||||||||||||||||||||
Tranche Five [Member] | Glencore Non-Convertible Debt [Member] | ||||||||||||||||||||||
Statement Line Items [Line Items] | ||||||||||||||||||||||
Principal secured debentures amount | $ 14,000,000 | |||||||||||||||||||||
Tranche Five [Member] | Glencore Non-Convertible Debt [Member] | Events after reporting period [Member] | ||||||||||||||||||||||
Statement Line Items [Line Items] | ||||||||||||||||||||||
Principal secured debentures amount | $ 80,000,000 | |||||||||||||||||||||
Tranche K Secured Debenture [Member] | ||||||||||||||||||||||
Statement Line Items [Line Items] | ||||||||||||||||||||||
Proceeds from debentures | $ 3,000,000 | |||||||||||||||||||||
Interest rate basis | LIBOR plus 15.0% | |||||||||||||||||||||
Tranche L-1 Secured Debenture [Member] | ||||||||||||||||||||||
Statement Line Items [Line Items] | ||||||||||||||||||||||
Proceeds from debentures | $ 5,000,000 | |||||||||||||||||||||
Interest rate basis | LIBOR plus 15.0% | |||||||||||||||||||||
Tranche L-2 Secured Debenture [Member] | ||||||||||||||||||||||
Statement Line Items [Line Items] | ||||||||||||||||||||||
Proceeds from debentures | $ 3,000,000 | |||||||||||||||||||||
Interest rate basis | LIBOR plus 15.0% | |||||||||||||||||||||
Tranche N Debenture [Member] | ||||||||||||||||||||||
Statement Line Items [Line Items] | ||||||||||||||||||||||
Proceeds from debentures | $ 15,000,000 | |||||||||||||||||||||
Tranche O Debenture [Member] | Events after reporting period [Member] | ||||||||||||||||||||||
Statement Line Items [Line Items] | ||||||||||||||||||||||
Proceeds from debentures | $ 5,000,000 |
Convertible Debt (Narrative) (D
Convertible Debt (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Sep. 14, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jul. 31, 2015 | Dec. 31, 2017 | Sep. 14, 2016 |
Disclosure of detailed information about borrowings [line items] | ||||||
Principal secured debentures amount | $ 20,000 | |||||
Interest rate basis | LIBOR plus 15.0% | |||||
Availability of debt or equity financing | $ 100,000 | |||||
Price per share | $ 0.7797 | |||||
Glencore Convertible Debt [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Principal secured debentures amount | $ 25,000 | |||||
Interest rate basis | LIBOR plus 15.0% | LIBOR plus 8.0% | LIBOR plus 4.0% | |||
Percentage of borrowing costs capitalization | 100.00% | |||||
Availability of debt or equity financing | $ 100,000 | |||||
Interest costs capitalized | $ 24,067 | |||||
PolyMet [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Price per share | $ 1.2696 | $ 0.7797 |
Convertible Debt (Schedule of C
Convertible Debt (Schedule of Convertible Debt) (Details) - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended |
Dec. 31, 2017 | Jan. 31, 2017 | |
Disclosure of Convertible Debt [Abstract] | ||
Convertible Debt - beginning of period | $ 42,154 | $ 35,986 |
Accretion and capitalized interest | 6,913 | 6,168 |
Convertible Debt - end of period | 49,067 | 42,154 |
Less current portion | (49,067) | |
Non-current portion | $ 42,154 |
Non-Convertible Debt (Narrative
Non-Convertible Debt (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 23, 2018 | Sep. 14, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Jan. 31, 2017 | Mar. 31, 2019 | Sep. 14, 2016 |
Disclosure of detailed information about borrowings [line items] | ||||||||
Common stock called by warrant | 625,000 | |||||||
Principal secured debentures amount | $ 20,000 | |||||||
Interest rate basis | LIBOR plus 15.0% | |||||||
Availability of debt or equity financing | $ 100,000 | |||||||
Events after reporting period [Member] | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Common stock called by warrant | 6,458,001 | |||||||
Availability of debt or equity financing | $ 100,000 | |||||||
PolyMet [Member] | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Warrant exercise price | $ 1.2696 | |||||||
Exercise of warrants | 38,660,854 | |||||||
Common stock called by warrant | 625,000 | |||||||
PolyMet [Member] | Events after reporting period [Member] | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Principal secured debentures amount | $ 80,000 | |||||||
IRRRB [Member] | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Repayment of initial principal loan | $ 4,000 | |||||||
Interest rate | 5.00% | |||||||
Warrant exercise price | $ 2.1678 | |||||||
Common stock called by warrant | 461,286 | |||||||
Percentage of borrowing costs capitalization | 100.00% | |||||||
Glencore [Member] | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Principal secured debentures amount | $ 70,000 | $ 15,000 | ||||||
2017 Agreement [Member] | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Principal secured debentures amount | $ 5,000 | |||||||
Glencore Non-Convertible Debt [Member] | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Percentage of borrowing costs capitalization | 100.00% | |||||||
Interest rate basis | LIBOR plus 15.0% | LIBOR plus 8.0% | ||||||
Interest costs capitalized | $ 22,268 | |||||||
Availability of debt or equity financing | $ 100,000 |
Non-Convertible Debt (Schedule
Non-Convertible Debt (Schedule of Non Convertible Debt) (Details) - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended |
Dec. 31, 2017 | Jan. 31, 2017 | |
Disclosure of detailed information about borrowings [line items] | ||
Accretion and capitalized interest | $ 6,913 | $ 6,168 |
Repayment | 5,111 | |
Total Non-Convertible Debt | 92,268 | 65,752 |
Less current portion | (92,268) | |
Non-current portion | 65,752 | |
IRRRB [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Non Convertible Debt - beginning of period | 4,962 | |
Accretion and capitalized interest | 149 | |
Repayment | (5,111) | |
Non Convertible Debt - end of period | ||
Glencore [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Non Convertible Debt - beginning of period | 65,752 | 43,023 |
Accretion and capitalized interest | 11,599 | 8,786 |
Funding, net of costs | 14,917 | 13,943 |
Non Convertible Debt - end of period | $ 92,268 | $ 65,752 |
Share Capital (Narrative) (Deta
Share Capital (Narrative) (Details) | 1 Months Ended | 11 Months Ended | 12 Months Ended | |||||
Oct. 28, 2016USD ($)$ / sharesshares | Oct. 18, 2016USD ($)$ / sharesshares | Dec. 31, 2017USD ($)sharesyr$ / shares | Jan. 31, 2017USD ($)shares | May 31, 2019USD ($) | Mar. 23, 2018$ / sharesshares | Jan. 31, 2016shares | Jun. 27, 2007shares | |
Disclosure of classes of share capital [line items] | ||||||||
Common share issued | 396,616 | 241,376 | ||||||
Common stock called by warrant | 625,000 | |||||||
Price per share | $ / shares | $ 0.7797 | |||||||
Share-based compensation | $ | $ 1,318,000 | $ 1,808,000 | ||||||
Number of outstanding share options vested and exercisable | 2,105,833 | |||||||
Number of options outstanding | 21,659,002 | 20,962,002 | 18,975,002 | |||||
Events after reporting period [Member] | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Common stock called by warrant | 6,458,001 | |||||||
Price per share | $ / shares | $ 0.8231 | |||||||
Broker [Member] | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Common share issued | 660,005 | |||||||
Proceeds from common share | $ | $ 151,000 | |||||||
Warrant [Member] | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Common share issued | 7,055,626 | 13,641,586 | ||||||
Common stock called by warrant | 6,458,001 | |||||||
Price per share | $ / shares | $ 0.8231 | |||||||
Proceeds from common share | $ | $ 1,270,000 | $ 2,174,000 | ||||||
Number of options outstanding | 21,322,212 | 27,780,213 | 6,919,287 | |||||
Fair value of option | $ | $ 823,100 | |||||||
Warrant [Member] | Events after reporting period [Member] | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Fair value of option | $ | $ 823,100 | |||||||
Warrant [Member] | Bottom of range [Member] | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Outstanding share options expire period | yr | 3.80 | |||||||
Warrant [Member] | Top of range [Member] | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Outstanding share options expire period | yr | 3.83 | |||||||
Placement Units [Member] | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Common share issued | 25,963,167 | |||||||
Price per share | $ / shares | $ 1 | |||||||
Proceeds from common share | $ | $ 19,472,000 | |||||||
Transaction costs | $ | 1,568,000 | |||||||
Common Shares [Member] | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Common share issued | 14,111,251 | |||||||
Proceeds from common share | $ | $ 9,210,000 | $ 15,881,000 | ||||||
Glencore Units [Member] | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Common share issued | 14,111,251 | |||||||
Price per share | $ / shares | $ 1 | |||||||
Proceeds from common share | $ | $ 10,583,000 | |||||||
Transaction costs | $ | $ 103,000 | |||||||
Land Purchase Options [Member] | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Proceeds from common share | $ | $ 256,000 | $ 200,000 | ||||||
Omnibus Plan [Member] | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Common share issued | 2,500,000 | |||||||
Share-based compensation | $ | 1,550,000 | 2,518,000 | ||||||
Capital amount to property | $ | 232,000 | 710,000 | ||||||
Capital reserve | $ | 1,111,000 | 2,518,000 | ||||||
Additional paid-in capital | $ | 439,000 | |||||||
Share Options [Member] | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Share-based compensation | $ | $ 368,000 | 1,490,000 | ||||||
Share Options [Member] | Bottom of range [Member] | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Outstanding share options expire period | yr | 0.03 | |||||||
Share Options [Member] | Top of range [Member] | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Outstanding share options expire period | yr | 9.56 | |||||||
Restricted Stock Unit [Member] | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Share-based compensation | $ | 112,000 | |||||||
Vesting of restricted share units | $ | $ 365,000 | $ 694,000 | ||||||
Permits [Member] | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Number of outstanding share options vested and exercisable | 883,333 | |||||||
Number of options outstanding | 134,891 | |||||||
Construction [Member] | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Number of outstanding share options vested and exercisable | 62,500 | |||||||
Production [Member] | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Number of outstanding share options vested and exercisable | 200,000 | |||||||
Number of options outstanding | 134,890 | |||||||
June 2018 [Member] | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Number of outstanding share options vested and exercisable | 300,000 | |||||||
June 2019 [Member] | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Number of outstanding share options vested and exercisable | 300,000 | |||||||
June 2020 [Member] | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Number of outstanding share options vested and exercisable | 300,000 | |||||||
Other [Member] | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Number of outstanding share options vested and exercisable | 60,000 | |||||||
Number of options outstanding | 513,059 | |||||||
RestrictedShareUnit (RSU) [Member] | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Number of options outstanding | 3,281,030 | 2,618,020 | 990,471 | |||||
Fair value of option | $ | $ 657,000 | |||||||
Construction Finance [Member] | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Number of options outstanding | 750,000 | |||||||
February 2018 [Member] | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Number of options outstanding | 1,050,837 | |||||||
January 2019 [Member] | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Number of options outstanding | 697,353 | |||||||
Milestone 4 Bonus Shares [Member] | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Fair value of option | $ | $ 279,000 | $ 304,000 |
Share Capital (Schedule of Stoc
Share Capital (Schedule of Stock Options Activities) (Details) | 11 Months Ended | 12 Months Ended |
Dec. 31, 2017USD ($)shares | Jan. 31, 2017USD ($)shares | |
Disclosure of classes of share capital [abstract] | ||
Outstanding - beginning of period | shares | 20,962,002 | 18,975,002 |
Granted | shares | 2,142,000 | 5,502,000 |
Expired | shares | (1,445,000) | (3,515,000) |
Outstanding - end of period | shares | 21,659,002 | 20,962,002 |
Weighted average exercise price outstanding at December 31, 2017 | $ | $ 1.1 | $ 1.29 |
Granted | $ | 0.62 | 0.76 |
Expired | $ | 2.19 | 1.64 |
Weighted average exercise price outstanding at December 31, 2017 | $ | $ 0.98 | $ 1.1 |
Share Capital (Schedule of Fair
Share Capital (Schedule of Fair Value of Options Granted Using Black-Scholes Option Pricing Model) (Details) | 11 Months Ended | 12 Months Ended | |
Dec. 31, 2017USD ($)yr | Jan. 31, 2017USD ($)yr | ||
Statement Line Items [Line Items] | |||
Expected dividend yield | |||
Expected forfeiture rate | |||
Warrant [Member] | |||
Statement Line Items [Line Items] | |||
Risk-free interest rate | |||
Expected dividend yield | |||
Expected forfeiture rate | |||
Expected volatility | |||
Expected life in years | yr | 0 | ||
Weighted average fair value of each option | $ | $ 0 | ||
Bottom of range [Member] | |||
Statement Line Items [Line Items] | |||
Risk-free interest rate | 1.42% | 1.01% | |
Expected volatility | 53.91% | 55.88% | |
Expected life in years | yr | 2.50 | 2.50 | |
Weighted average fair value of each option | $ | $ 0.22 | $ 0.26 | |
Bottom of range [Member] | Warrant [Member] | |||
Statement Line Items [Line Items] | |||
Risk-free interest rate | 0.98% | ||
Expected volatility | 55.58% | ||
Expected life in years | yr | 2.50 | ||
Weighted average fair value of each option | $ | [1] | $ 0.19 | |
Top of range [Member] | |||
Statement Line Items [Line Items] | |||
Risk-free interest rate | 1.82% | 1.30% | |
Expected volatility | 57.06% | 59.17% | |
Expected life in years | yr | 5 | 5 | |
Weighted average fair value of each option | $ | $ 0.32 | $ 0.38 | |
Top of range [Member] | Warrant [Member] | |||
Statement Line Items [Line Items] | |||
Risk-free interest rate | 1.33% | ||
Expected volatility | 58.47% | ||
Expected life in years | yr | 5 | ||
Weighted average fair value of each option | $ | [1] | $ 0.4 | |
[1] | The fair value of share purchase warrants was used in determining the allocation of net proceeds under the relative fair value method for Placement Units on October 18, 2016 and Glencore Units on October 28, 2016. See Notes 7 and 10a for additional details. |
Share Capital (Schedule of St50
Share Capital (Schedule of Stock Options Outstanding and Exercisable) (Details) | 11 Months Ended | ||
Dec. 31, 2017USD ($)sharesyr | Jan. 31, 2017shares | Jan. 31, 2016shares | |
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Number of options outstanding | 21,659,002 | 20,962,002 | 18,975,002 |
Number of options Exercisable | 19,553,169 | ||
Weighted Average Exercise Price | $ | $ 0.98 | ||
Weighted Average Remaining Life | yr | 3.87 | ||
0.7110 to 0.7977 [Member] | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Number of options outstanding | 11,754,000 | ||
Number of options Exercisable | 10,020,667 | ||
Weighted Average Exercise Price | $ | $ 0.73 | ||
Weighted Average Remaining Life | yr | 3.92 | ||
0.8200 to 0.9972 [Member] | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Number of options outstanding | 3,839,000 | ||
Number of options Exercisable | 3,789,000 | ||
Weighted Average Exercise Price | $ | $ 0.97 | ||
Weighted Average Remaining Life | yr | 5.89 | ||
1.0058 to 1.5000 [Member] | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Number of options outstanding | 4,096,002 | ||
Number of options Exercisable | 4,096,002 | ||
Weighted Average Exercise Price | $ | $ 1.15 | ||
Weighted Average Remaining Life | yr | 2.78 | ||
1.7689 to 2.4886 [Member] | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Number of options outstanding | 1,665,000 | ||
Number of options Exercisable | 1,465,000 | ||
Weighted Average Exercise Price | $ | $ 2.01 | ||
Weighted Average Remaining Life | yr | 2.15 | ||
2.6273 to 3.0695 [Member] | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Number of options outstanding | 305,000 | ||
Number of options Exercisable | 182,500 | ||
Weighted Average Exercise Price | $ | $ 2.81 | ||
Weighted Average Remaining Life | yr | 0.74 |
Share Capital (Schedule of Rest
Share Capital (Schedule of Restricted Shares And Share Purchase Warrant Activities) (Details) | 11 Months Ended | 12 Months Ended |
Dec. 31, 2017USD ($)shares | Jan. 31, 2017USD ($)shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Outstanding - beginning of period | 20,962,002 | 18,975,002 |
Expired | (1,445,000) | (3,515,000) |
Outstanding - end of period | 21,659,002 | 20,962,002 |
Weighted average exercise price outstanding at December 31, 2017 | $ | $ 1.1 | $ 1.29 |
Expired | $ | 2.19 | 1.64 |
Weighted average exercise price outstanding at December 31, 2017 | $ | $ 0.98 | $ 1.1 |
RestrictedShareUnit (RSU) [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Outstanding - beginning of period | 2,618,020 | 990,471 |
Issued | 1,077,869 | 2,303,239 |
Forfeited | (8,896) | |
Vested | (405,963) | (675,690) |
Outstanding - end of period | 3,281,030 | 2,618,020 |
Warrant [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Outstanding - beginning of period | 27,780,213 | 6,919,287 |
Issued | 21,322,212 | |
Expired | (6,458,001) | (461,286) |
Outstanding - end of period | 21,322,212 | 27,780,213 |
Weighted average exercise price outstanding at December 31, 2017 | $ | $ 0.95 | $ 0.91 |
Issued | $ | 0.99 | |
Expired | $ | (0.82) | (2.17) |
Weighted average exercise price outstanding at December 31, 2017 | $ | $ 0.99 | $ 0.95 |
Share Capital (Schedule of Bonu
Share Capital (Schedule of Bonus Share) (Details) - shares | Dec. 31, 2017 | Jan. 31, 2017 |
Allocated Bonus Shares [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Outstanding share authorized | 3,150,000 | 3,150,000 |
Unissued Bonus Shares [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Outstanding share authorized | 3,640,000 | 3,640,000 |
Finance Costs - Net (Schedule o
Finance Costs - Net (Schedule of Finance Costs Net) (Details) - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended |
Dec. 31, 2017 | Jan. 31, 2017 | |
Debt accretion and capitalized interest: | ||
Convertible debt (Notes 7 and 8) | $ 6,913 | $ 6,168 |
Non-convertible debt (Notes 7 and 9) | 11,599 | 8,935 |
Environmental rehabilitation provision accretion (Note 6) | 1,776 | 1,465 |
Other finance costs | 562 | 1,261 |
Less: amounts capitalized on qualifying assets | (18,512) | (15,103) |
Finance costs | 2,338 | 2,726 |
Interest income: | ||
Bank deposits | (105) | (54) |
Finance income | (105) | (54) |
Finance costs - net | $ 2,233 | $ 2,672 |
Related Party Transactions (Nar
Related Party Transactions (Narriative) (Details) - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended |
Dec. 31, 2017 | Jan. 31, 2017 | |
Technical Services Agreement [Member] | ||
Disclosure of transactions between related parties [line items] | ||
Services received | $ 102 | |
Financing Advisory Agreement [Member] | ||
Disclosure of transactions between related parties [line items] | ||
Services received | $ 730 |
Related Party Transactions (Sch
Related Party Transactions (Schedule of Key Management Personnel Compensation) (Details) - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended | |
Dec. 31, 2017 | Jan. 31, 2017 | ||
Related party transactions [abstract] | |||
Salaries and other short-term benefits | $ 1,898 | $ 1,828 | |
Other long-term benefits | 42 | 44 | |
Share-based payment | [1] | 836 | 1,709 |
Total | $ 2,776 | $ 3,581 | |
[1] | Share-based payment represents the amount capitalized or expensed during the period (see Note 10). |
Income Taxes (Schedule of Recon
Income Taxes (Schedule of Reconciliation of Effective Income Tax Rate) (Details) - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended |
Dec. 31, 2017 | Jan. 31, 2017 | |
Major components of tax expense (income) [abstract] | ||
Loss for the year before taxes | $ (10,098) | $ (9,229) |
Canadian statutory tax rate | 27.00% | 26.00% |
Expected tax recovery | $ (2,726) | $ (2,400) |
Difference in foreign tax rates | (84) | (413) |
Non-deductible items | 356 | 470 |
Change in tax rate | 5,025 | |
Change in unrecognized deferred tax and other items | (2,571) | 2,343 |
Income Tax Expense / (Recovery) |
Income Taxes (Schedule of Compo
Income Taxes (Schedule of Components of Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Jan. 31, 2017 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Net deferred income tax liabilities | ||
Non-capital loss [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Net deferred income tax liabilities | 27,799 | 35,992 |
Property and equipment [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Net deferred income tax liabilities | (27,799) | (35,992) |
Other [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Net deferred income tax liabilities |
Income Taxes (Schedule of Unrec
Income Taxes (Schedule of Unrecognized Deferred Income Tax Assets) (Details) - USD ($) $ in Thousands | 11 Months Ended | |
Dec. 31, 2017 | Jan. 31, 2017 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Unrecognized deferred income tax assets | $ 26,414 | $ 29,056 |
Expiry date | 2018 and 2032 | |
Loss carry forward | $ 136,400 | 125,600 |
Non-capital loss [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Unrecognized deferred income tax assets | $ 22,786 | 25,619 |
Expiry date | 2019 and 2037 | |
Loss carry forward | $ 42,800 | 37,800 |
Capital loss [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Unrecognized deferred income tax assets | 360 | 347 |
Intercompany Receivable Assets [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Unrecognized deferred income tax assets | 2,109 | 2,031 |
Other Assets [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Unrecognized deferred income tax assets | $ 1,159 | $ 1,059 |
Commitments and Contingencies (
Commitments and Contingencies (Schedule of Contractual Obligations) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Jan. 31, 2017 |
Disclosure of finance lease and operating lease by lessee [line items] | ||
Accounts payable and accruals | $ 3,630 | $ 3,188 |
Convertible debt (Note 8) | 49,067 | |
Non-convertible debt (Note 9) | 92,268 | |
Total | 144,965 | $ 111,094 |
Less than 1 year [Member] | ||
Disclosure of finance lease and operating lease by lessee [line items] | ||
Accounts payable and accruals | 3,630 | |
Convertible debt (Note 8) | 51,183 | |
Non-convertible debt (Note 9) | 96,294 | |
Firm commitments | 448 | |
Total | 151,555 | |
1 - 3 years [Member] | ||
Disclosure of finance lease and operating lease by lessee [line items] | ||
Accounts payable and accruals | ||
Convertible debt (Note 8) | ||
Non-convertible debt (Note 9) | ||
Firm commitments | 581 | |
Total | 581 | |
3 - 5 year [Member] | ||
Disclosure of finance lease and operating lease by lessee [line items] | ||
Accounts payable and accruals | ||
Convertible debt (Note 8) | ||
Non-convertible debt (Note 9) | ||
Firm commitments | 500 | |
Total | 500 | |
More than 5 years [Member] | ||
Disclosure of finance lease and operating lease by lessee [line items] | ||
Accounts payable and accruals | ||
Convertible debt (Note 8) | ||
Non-convertible debt (Note 9) | ||
Firm commitments | ||
Total | ||
Carrying Value [Member] | ||
Disclosure of finance lease and operating lease by lessee [line items] | ||
Accounts payable and accruals | 3,630 | |
Convertible debt (Note 8) | 49,067 | |
Non-convertible debt (Note 9) | 92,268 | |
Firm commitments | ||
Total | 144,965 | |
Contractual Cash Flow [Member] | ||
Disclosure of finance lease and operating lease by lessee [line items] | ||
Accounts payable and accruals | 3,630 | |
Convertible debt (Note 8) | 51,183 | |
Non-convertible debt (Note 9) | 96,294 | |
Firm commitments | 1,529 | |
Total | $ 152,636 |
Financial Instruments and Ris60
Financial Instruments and Risk Management (Schedule of Financial Instrument) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Jan. 31, 2017 |
Financial assets | ||
Cash | $ 6,931 | $ 18,674 |
Amounts receivable | 2,965 | 2,761 |
Total financial assets | 9,896 | 21,435 |
Financial liabilities | ||
Accounts payable and accruals | 3,630 | 3,188 |
Convertible debt | 49,067 | 42,154 |
Non-convertible debt | 92,268 | 65,752 |
Total financial liabilities | 144,965 | 111,094 |
Loans and Receivables [Member] | ||
Financial assets | ||
Cash | 6,931 | 18,674 |
Amounts receivable | 82 | 105 |
Total financial assets | 7,013 | 18,779 |
Financial liabilities | ||
Accounts payable and accruals | ||
Convertible debt | ||
Non-convertible debt | ||
Total financial liabilities | ||
Available For Sale [Member] | ||
Financial assets | ||
Cash | ||
Amounts receivable | 2,883 | 2,656 |
Total financial assets | 2,883 | 2,656 |
Financial liabilities | ||
Accounts payable and accruals | ||
Convertible debt | ||
Non-convertible debt | ||
Total financial liabilities | ||
Other Financial Liabilities [Member] | ||
Financial assets | ||
Cash | ||
Amounts receivable | ||
Total financial assets | ||
Financial liabilities | ||
Accounts payable and accruals | 3,630 | 3,188 |
Convertible debt | 49,067 | 42,154 |
Non-convertible debt | 92,268 | 65,752 |
Total financial liabilities | $ 144,965 | $ 111,094 |
Financial Instruments and Ris61
Financial Instruments and Risk Management (Schedule of Interest Rate Risk) (Details) - USD ($) $ in Thousands | 11 Months Ended | |
Dec. 31, 2017 | Jan. 31, 2017 | |
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Cash | $ 6,931 | $ 18,674 |
Convertible debt | 49,067 | 42,154 |
Non-convertible debt | 92,268 | 65,752 |
Maximum exposure to credit risk | 9,896 | |
Interest rate risk [Member] | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Cash | 6,931 | 18,674 |
Convertible debt | 49,067 | 42,154 |
Non-convertible debt | 92,268 | $ 65,752 |
Net carrying value of debt | 1,413 | |
Foreign currency net monetary asset position | $ 69 |
Subsequent Event (Details)
Subsequent Event (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2018 | Oct. 31, 2018 | Sep. 18, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Mar. 31, 2018 | Mar. 23, 2018 | Sep. 14, 2017 | Dec. 31, 2017 |
Disclosure of non-adjusting events after reporting period [line items] | |||||||||
Availability of debt or equity financing | $ 100,000 | ||||||||
Interest rate basis | LIBOR plus 15.0% | ||||||||
Common stock called by warrant | 625,000 | ||||||||
Price per share | $ 0.7797 | ||||||||
Events after reporting period [Member] | |||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||
Maturity date | Mar. 31, 2019 | ||||||||
Availability of debt or equity financing | $ 100,000 | ||||||||
Common stock called by warrant | 6,458,001 | ||||||||
Price per share | $ 0.8231 | ||||||||
Events after reporting period [Member] | Tranche P Debenture [Member] | |||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||
Proceeds from April 30, 2018 debentures | $ 20,000 | ||||||||
Events after reporting period [Member] | Tranche Q Debenture [Member] | |||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||
Proceeds from April 30, 2018 debentures | $ 15,000 | ||||||||
Events after reporting period [Member] | Tranche R Debenture [Member] | |||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||
Proceeds from April 30, 2018 debentures | $ 20,000 | ||||||||
Events after reporting period [Member] | Tranche S Debenture [Member] | |||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||
Proceeds from April 30, 2018 debentures | $ 15,000 | ||||||||
Events after reporting period [Member] | Tranche T Debenture [Member] | |||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||
Proceeds from April 30, 2018 debentures | $ 10,000 | ||||||||
Events after reporting period [Member] | Glencore Secured Debentures [Member] | |||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||
Maturity date | Mar. 31, 2019 | ||||||||
Availability of debt or equity financing | $ 100,000 | ||||||||
Interest rate basis | LIBOR plus 10.0% | ||||||||
Proceeds from exercise of option | $ 80,000 | ||||||||
Events after reporting period [Member] | Top of range [Member] | |||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||
Interest rate basis | LIBOR plus 15.0% | ||||||||
Events after reporting period [Member] | Bottom of range [Member] | |||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||
Interest rate basis | LIBOR plus 10.0%  |