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PLM Polymet Mining

Document and Entity Information

Document and Entity Information12 Months Ended
Dec. 31, 2019shares
Document And Entity Information
Entity Registrant NamePOLYMET MINING CORP
Entity Central Index Key0000866028
Document Type40-F
Document Period End DateDec. 31,
2019
Amendment Flagfalse
Current Fiscal Year End Date--12-31
Is Entity's Reporting Status Current?Yes
Entity Common Stock, Shares Outstanding1,005,230,259
Document Fiscal Period FocusFY
Document Fiscal Year Focus2019
Entity Emerging Growth Companyfalse
Entity Interactive Data CurrentYes

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in ThousandsDec. 31, 2019Dec. 31, 2018
Current
Cash $ 7,401 $ 13,857
Amounts receivable472 796
Prepaid expenses1,039 1,161
Total current assets8,912 15,814
Non-Current
Restricted deposits11,449 10,286
Amounts receivable and other assets2,442 1,796
Mineral Property, Plant and Equipment410,132 433,548
Intangibles24,380 24,185
Total assets457,315 485,629
Current
Accounts payable and accruals4,533 3,925
Lease liabilities60 88
Convertible debt 56,984
Non-convertible debt 178,483
Environmental rehabilitation provision1,276 1,693
Total Current Liabilities5,869 241,173
Non-Current
Lease liabilities556
Promissory note15,501
Environmental rehabilitation provision51,249 59,414
Total Liabilities73,175 300,587
SHAREHOLDERS' EQUITY
Share Capital526,884 272,420
Equity Reserves64,648 62,111
Deficit(207,392)(149,489)
Total Shareholders' Equity384,140 185,042
Total Liabilities and Shareholders' Equity $ 457,315 $ 485,629

Consolidated Statements of Loss

Consolidated Statements of Loss and Comprehensive Loss - USD ($) $ in Thousands12 Months Ended
Dec. 31, 2019Dec. 31, 2018
General and Administrative Expenses
Salaries, directors' fees and related benefits $ 2,933 $ 2,547
Share-based compensation1,558 1,742
Professional fees1,444 634
Regulatory fees230 197
Investor and public relations1,003 1,174
Office and administration580 646
Depreciation122 130
Total General and Administration Expenses7,870 7,070
Other Expenses (Income)
Finance costs - net1,532 2,381
Loss/(gain) on foreign exchange12 (3)
Loss on debenture modification2,004 4,109
Loss on land exchange 553
Gain on disposal of property, plant & equipment(383)
(Gain)/loss on financial asset fair value(264)971
Asset impairment47,168
Other income(36)(38)
Total Other Expenses50,033 7,973
Loss for the Period57,903 15,043
Items that may be subsequently reclassified to profit or loss:
Total Comprehensive Loss for the Period - Net of Tax $ 57,903 $ 15,043
Basic and Diluted Loss per Share $ 0.09 $ 0.05
Weighted Average Number of Shares - basis and diluted672,091,052 320,495,981

Consolidated Statements of Chan

Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in ThousandsShares Capital [Member]Equity Reserves [Member]Deficit [Member]Total
Balance at Dec. 31, 2017 $ 270,667 $ 60,295 $ (134,446) $ 196,516
Balance share at Dec. 31, 2017319,303,098
Statement Line Items [Line Items]
Total comprehensive loss for the period (15,043)(15,043)
Debenture refinancing warrants 2,331 2,331
Payment of land purchase options $ 123 123
Payment of land purchase options, shares128,750
Exercise of share options $ 218 (67) $ 151
Exercise of share options, shares225,000 815,500
Exercise of warrants $ 683 (92) $ 591
Exercise of warrants, shares590,500
Vesting of restricted shares and RSU's $ 624 (624)
Vesting of restricted shares and RSU's, shares843,413
Share-based compensation $ 105 1,787 1,892
Share-based compensation, shares99,308
Bonus share cost amortization (forfeiture) (1,519) (1,519)
Balance at Dec. 31, 2018 $ 272,420 62,111 (149,489)185,042
Balance share at Dec. 31, 2018321,190,069
Statement Line Items [Line Items]
Total comprehensive loss for the period (57,903)(57,903)
Rights offering net of issuance costs $ 253,047 253,047
Rights offering net of issuance costs, shares682,813,838
Debenture refinancing warrants 1,564 1,564
Payment of land purchase options $ 46 46
Payment of land purchase options, shares78,750
Exercise of share options $ 572 (298) 274
Exercise of share options, shares400,171
Vesting of restricted shares and RSU's $ 715 (715)
Vesting of restricted shares and RSU's, shares644,510
Share-based compensation $ 84 1,986 2,070
Share-based compensation, shares102,921
Balance at Dec. 31, 2019 $ 526,884 $ 64,648 $ (207,392) $ 384,140
Balance share at Dec. 31, 20191,005,230,259

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands12 Months Ended
Dec. 31, 2019Dec. 31, 2018
Operating Activities
Loss for the period $ (57,903) $ (15,043)
Items not involving cash:
Depreciation122 130
Interest expense160
Environmental rehabilitation provision accretion2,072 1,796
Share-based compensation1,558 1,742
Unrealized loss on foreign exchange16 7
Loss on debentures modification2,004 4,109
Loss on land exchange 553
Gain on disposal of property, plant & equipment(383)
(Gain)/loss on financial instrument fair value(264)971
Asset impairment47,168
Changes in non-cash working capital:
Restricted deposits(1,163)
Amounts receivable and other assets442 (384)
Prepaid expenses122 (350)
Accounts payable and accruals1,577 667
Net cash used in operating activities(4,472)(5,802)
Financing Activities
Share issuance proceeds21,839 742
Share issuance costs(11,953)
Debenture funding, net of costs15,000 69,723
Debenture repayment(6,882)
Cash settled RSU's(232)(377)
Net cash provided by financing activities17,772 70,088
Investing Activities
Property, plant and equipment purchases(20,795)(26,437)
Intangible purchases(195)(21,055)
Property, plant and equipment disposal proceeds1,250
Land exchange proceeds 425
Restricted deposits (10,286)
Net cash used in investing activities(19,740)(57,353)
Net Increase (Decrease) in Cash(6,440)6,933
Effect of foreign exchange on Cash(16)(7)
Cash - Beginning of period13,857 6,931
Cash - End of period7,401 13,857
Supplemental information - non-cash investing and financing
Accounts payable and accruals(712)(390)
Debt accretion and capitalized interest14,751 20,560
Share-based compensation497 460
Bonus share amortization 25
Bonus share forfeiture (1,544)
Fair value of shares issued for land options46 123
Share issuance proceeds243,435
Debenture repayment $ (243,435)

Nature of Business and Liquidit

Nature of Business and Liquidity12 Months Ended
Dec. 31, 2019
Nature of Business and Liquidity [Abstract]
Nature of Business and Liquidity1.
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 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 British Columbia, Canada, V7Y 1B3, respectively. The executive office of PolyMet US is located at 444 Cedar Street, Suite 2060, St. Paul, Minnesota, United States of
America, 55101. The Company has a majority shareholder relationship with Glencore AG, a wholly owned subsidiary of Glencore plc (together “Glencore”), as a result of
Glencore’s ownership of 71.6% of the Company’s issued shares. 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. PolyMet received its Permit to Mine from the State of Minnesota on November 1, 2018, a crucial permit for construction and operation of the Project. The
Minnesota Department of Natural Resources (“MDNR”) also issued all other permits for which the Company had applied including dam safety, water appropriations, endangered and threatened species takings, and public waters work permits, along with
Wetlands Conservation Act approval. In addition, PolyMet received air and water permits from the Minnesota Pollution Control Agency (“MPCA”) on December 18, 2018. Further, PolyMet received the federal Record of Decision and Section 404 Wetlands
Permit from the U.S. Army Corps of Engineers on March 21, 2019, which was the last key permit or approval needed to construct and operate the Project. Legal challenges were filed in the Minnesota Court of Appeals contesting various aspects of the MDNR and MPCA decisions. PolyMet is a co-respondent in all
suits. In June 2019, the Court of Appeals transferred the challenge to the MPCA water quality permit to the Ramsey County District Court for the limited purpose of
an evidentiary hearing. The water quality permit is temporarily stayed pending the outcome of that hearing. In January 2020, the Court of Appeals remanded the MDNR Permit to Mine and dam safety permits to the MDNR for a contested case hearing. The Company, MDNR,
and several other groups have petitioned the Minnesota Supreme Court to review that decision. The Company cited several reasons for the appeal, including (i) the Court of Appeals’ ruling conflicts with both the relevant statute and the Supreme
Court’s precedent; and (ii) that agencies should not be required to hold a contested case hearing when there is no reasonable basis for such a hearing to help them make a decision. PolyMet cannot act on the remanded permits until the Supreme Court
rules or a contested case hearing occurs. In March 2020, the Minnesota Supreme Court granted review of the Court of Appeals ruling on the NorthMet Permit to Mine and
dam safety permits. In March 2020, the Court of Appeals remanded the
air permit to the Minnesota Pollution Control Agency to provide more information and the Company is evaluating all legal options.
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 and maintain permits necessary to construct and operate NorthMet, the ability to obtain financing necessary to complete the development of NorthMet, and to conduct future profitable operations or
alternatively, disposal of the investment on an advantageous basis. 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 at December 31, 2019, the Company had
cash of $7.401 million and working capital of $3.043 million. Subsequent to year end, the Company agreed to issue unsecured
convertible debentures to Glencore in four tranches during 2020 with a total minimum principal amount of $20.0 million and
total maximum principal amount of $30.0 million, the amount of each tranche to be determined jointly by the Company and Glencore.
The first tranche in the amount of $7.0 million was issued on March 18, 2020 (see Note 16). Management believes financing will continue to be available allowing the Company to complete development of the Project and to conduct future profitable
operations. Management’s belief is based upon the underlying value of the Project, progress on obtaining and maintain permits, ongoing discussions with potential financiers and the majority shareholder relationship with Glencore. 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. In late December 2019, a novel coronavirus (COVID-19) was identified originating in China, subsequently spread worldwide and
on March 11, 2020, the World Health Organization declared it was a pandemic. The continued spread of COVID-19 globally, prolonged
restrictive measures put in place to help control the outbreak of COVID-19 or other adverse public health developments could
adversely affect global economies and financial markets. These affects could result in volatility or an economic downturn
having adverse effects on the future demand and prices for metals the Company will produce and on the Company’s ability
to raise sufficient funds to finance ongoing development of the Project. The extent to which COVID-19 impacts the Company’s
business, including the market for its securities, the ability to raise capital and valuation of non-financial assets including
mineral property, plant and equipment and intangibles, will depend on future developments, which are highly uncertain and
cannot be predicted at this time.

Basis of Preparation

Basis of Preparation12 Months Ended
Dec. 31, 2019
Basis of Preparation [Abstract]
Basis of Preparation2.
Basis of Preparation
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, 2020.
b)
Basis of Consolidation and Preparation 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 basis, except for those assets and liabilities that are measured at
revalued amounts or fair values at the end of each reporting period. All dollar amounts presented are in United States (“U.S.”) dollars unless otherwise specified.
c)
Change in Accounting Policies On January 1, 2018, the Company adopted the following new accounting standards that were previously issued by the IASB. Certain other new standards and
interpretations have been issued and were effective as of January 1, 2018 and January 1, 2019 but did not have a material impact on the Company’s financial statements and are therefore not discussed below. The accounting policies discussed below reflect the Company’s adoption of IFRS 9 - Financial Instruments, effective January 1, 2018, and IFRS 16 - Leases,
which had an effective date of January 1, 2019 but for which the company early adopted as of January 1, 2018. 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. The Company adopted IFRS 9 effective January 1, 2018 on a retrospective basis without restating prior period comparatives. IFRS 9 requires financial assets to be classified into the following measurement categories: fair value through profit and loss, fair value through other
comprehensive income, and those measured at amortized cost. The determination is made at initial recognition. At transition, the amounts receivable previously classified as available-for-sale and measured at fair value through other comprehensive
income was re-classified as fair value through profit or loss with changes in fair value recognized in the statement of loss instead of through other comprehensive loss. Adoption resulted in re-classification of $0.210 million to the opening
deficit from accumulated other comprehensive loss for cumulative gains on the amounts receivable. 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 the statement of loss for the difference between the carrying amount of the old debt and the fair value of the new debt. This extinguishment accounting remains the same under IFRS 9. However, accounting
differs where the change is not significant enough to be an extinguishment. Under IAS 39, modifications would not lead to an immediate income charge, whereas, under IFRS
9, the cash flows under the modified debt are discounted using the original effective interest rate of the instrument with an immediate charge to income. Adoption of IFRS 9 resulted in a $2.159 million adjustment to increase the opening deficit as
at January 1, 2018 and increase the carrying value of convertible and non-convertible debt to reflect accounting for prior year modifications under the new standard (see Notes 8 and 9). IFRS 16 – Leases IFRS 16 replaces IAS 17 – Leases. The new standard requires capitalization of certain leases by the lessee and results in accounting treatment similar to
finance leases under IAS 17 - Leases. Exemptions for leases of very low value or short duration leases are applicable. The new standard results in an increase in lease assets and liabilities for the lessee. Under the new standard the treatment of
all lease expenses is aligned in the statement of loss and comprehensive loss with depreciation, and an interest expense component recognized for each lease, in line with finance lease accounting under IAS 17 - Leases. The Company early adopted IFRS 16 effective January 1, 2018 on a modified retrospective basis without restating prior period comparatives. As a result, the
Company recorded a $0.211 million lease asset and corresponding lease liability for the one qualifying office lease that will be recognized over the remaining term. The Company’s other leases (see Note 3) are leases to explore mining rights, which
are excluded from IFRS 16’s scope. The following table summarizes the impact of adopting IFRS 9 - Financial Instruments and IFRS 16 - Leases:
Consolidated Balance Sheet Impact
Dec 31, 2017
IFRS 9
IFRS 16
Jan 1, 2018
Mineral Property, Plant and Equipment
$
395,205
$
-
$
211
$
395,416
Accounts Payable and Accruals
3,630
-
211
3,841
Convertible Debt
49,067
1,346
-
50,413
Non-Convertible Debt
92,268
813
-
93,081
Equity Reserves
60,505
(210
)
-
60,295
Deficit
$
(132,497
)
$
(1,949
)
$
-
$
(134,446
)
d)
Critical Accounting Estimates The preparation of consolidated financial statements in conformity with IFRS requires the use of certain critical accounting estimates. This requires
management to make 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 used in the preparation of the consolidated financial statements are as follows: 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, metal 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 prices for
its products, based on current and long-term historical average price trends. Changes in the proven and probable reserve estimates may impact the carrying value of property, plant and equipment, rehabilitation provisions, deferred tax amounts and
depreciation, depletion and amortization. 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 reflecting current market assessments of the time value of money. The Company’s estimates of its 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, changes in operating plans, or changes in cost estimates. 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. The likelihood of new regulations and overall effect upon the Company may vary greatly and are not
predictable. The provision for environmental rehabilitation obligations represents management’s best estimate of the present value of the future cash outflows required to
settle the liability (see Note 6).
e)
Critical Accounting Judgments The preparation of consolidated financial statements in conformity with IFRS requires the use of certain critical accounting judgments. This requires
management to make judgments 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 judgments used in the preparation of the consolidated financial statements are as follows: Impairment of non-financial assets The Company considers both external and internal sources of information in assessing whether there are any indications of impairment. External sources of
information 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. Internal sources of information include indications of economic performance
of the asset. Going concern assumptions The Company must assess its ability to continue as a going concern and prepare financial statements on a going concern basis unless it either intends to
liquidate or cease trading or has no realistic alternative but to do so. In assessing whether the going concern assumption is appropriate, the Company takes into account all available information about the future, which is at least, but is not
limited to, twelve months from the end of the reporting period.
f)
Summary of Significant Accounting Policies Cash and Restricted Deposits Cash include amounts held in banks and highly liquid investments with original maturities of three months or less. Restricted deposits are held in a trust
account and invested in highly liquid investments with a major financial institution as security and collateral for reclamation activities. Financial Assets All financial assets are initially recorded at fair value and designated upon inception as one of the following categories: fair value through profit or loss
(“FVTPL”) or amortized cost. Financial assets classified as FVTPL are measured at fair value with gains and losses recognized through profit and loss. Financial assets classified as amortized cost 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 allocating interest income over the relevant period. The effective interest rate is
the rate that discounts estimated future cash flows through the expected life of the financial asset, or, where appropriate, a shorter period. Loss allowances are recognized for Expected Credit Losses (“ECL”) for amounts receivable and other
assets not measured at FVTPL. Loss allowances for amounts receivable and other assets are measured at an amount equal to lifetime ECL. ECL is a probability-weighted estimate and measured as the present value of all cash shortfalls including the
impact of forward looking information. The loss allowance is presented as a deduction to amounts receivable and other assets. Transaction costs associated with FVTPL financial assets are expensed as incurred, while transaction costs associated
with amortized cost financial assets are included in the initial carrying amount of the asset (see Note 15). Mineral Property Exploration costs are incurred to discover mineral resources. Evaluation costs are incurred to assess the technical feasibility and commercial viability of
the resources found. Exploration and evaluation costs incurred prior to receipt of a feasibility study or Definitive Feasibility Study (“DFS”) confirming the technical feasibility and commercial viability of extracting the mineral resource 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. Development costs are capitalized to the extent they are necessary to bring the property to commercial production and are directly attributable to an area of interest or capable of being reasonably allocated to an
area of interest. NorthMet entered the development stage effective October 1, 2006 following receipt of the DFS. Upon commencement of production, related mineral property acquisition and development costs will be 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. Leases The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost,
which comprises the initial amount of the lease liability, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any
lease incentives received. The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The lease
liability is initially measured at the present value of the lease payments, discounted using the incremental borrowing rate. Intangibles Intangibles include wetland credits and software. Acquisition costs are capitalized until the asset is used, sold, or abandoned. Wetland credits are used
to offset and mitigate wetlands disturbed during construction and operation of the Project. 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. Software is amortized over the useful life once placed into service. 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 FVTPL are initially recognized at fair value with directly attributable transaction costs expensed as incurred. At the end of each reporting period, 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. Financial liabilities classified as other financial liabilities are initially recognized at fair value less directly attributable transaction costs and subsequently
measured at amortized cost using the effective interest method which calculates the amortized cost of a financial liability and allocates interest expense over the expected life of the financial liability. Exchanges of instruments and modifications to debt are assessed using quantitative and qualitative factors to consider whether the exchange or modification
constitutes an extinguishment of the original financial liability and establishment of a new financial liability. In the case of extinguishment, any fees or costs incurred are recognized in profit or loss in the period in which they arise. Where
the terms in an exchange or modification are not assessed to be substantially different, a modification gain or loss is recognized at an amount equal to the difference between the modified cash flows discounted at the original effective interest
rate and the carrying value of the debt. The carrying value of the debt is adjusted for this modification gain or loss, directly attributable transaction costs, and any cash paid to or received from the debt holder (see Note 15). 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 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 expected to
be settled in shares is amortized over the vesting period. For awards expected to be settled in cash, the change in market value and corresponding liability is adjusted to fair
value at each reporting period. The award is accrued and 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 or removed from liabilities. 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 The Company issues share purchase warrants in connection with certain financing 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. 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. 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 The income tax expense or benefit for the year consists of 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 includes 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.

Mineral Property Agreements

Mineral Property Agreements12 Months Ended
Dec. 31, 2019
Disclosure of mineral property agreements [Abstract]
Mineral Property Agreements3.
Mineral Property Agreements NorthMet, Minnesota, U.S.A. Pursuant to an agreement dated January 4, 1989, subsequently amended and assigned, the Company leases certain mineral property rights in St. Louis County,
Minnesota from RGGS Land & Minerals Ltd., L.P. Provided the Company continues to make annual lease payments, the lease period continues until June 12, 2048 with an option to extend the lease for up to five additional ten-year periods on the
same terms and further extend as long as there are commercial mining operations. All lease payments have been paid to date with the next annual payment of $0.175 million due in January 2021. Pursuant to an agreement dated December 1, 2008, the Company leases certain mineral property rights in St. Louis County, Minnesota from LMC Minerals.
Provided the Company continues to make annual lease payments, the lease period continues until December 1, 2028 with an option to extend the lease for up to four additional five-year periods on the same terms. All lease payments have been paid to
date with the next annual payment of $0.030 million due in November 2020. 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 $3.186 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 $0.249 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.

Mineral Property, Plant and Equ

Mineral Property, Plant and Equipment12 Months Ended
Dec. 31, 2019
Disclosure of detailed information about property, plant and equipment [abstract]
Mineral Property, Plant and Equipment4.
Mineral Property, Plant and Equipment Details of the Mineral Property, Plant and Equipment are as follows:
Net Book Value
Mineral Property
Plant and Equipment
Total
Balance at December 31, 2018
433,347
201
433,548
Additions
33,956
746
34,702
Disposals
(867
)
-
(867
)
Changes to environmental rehabilitation provision (Note 6)
(9,912
)
-
(9,912
)
Asset Impairment
(47,168
)
-
(47,168
)
Amortization and Depreciation
-
(171
)
(171
)
Balance at December 31, 2019
$
409,356
$
776
$
410,132
Gross carrying value
456,524
1,931
458,455
Accumulated depreciation and impairment
(47,168
)
(1,155
)
(48,323
)
Net Book Value
Mineral Property
Plant and Equipment
Total
Balance at January 1, 2018
$
395,115
$
301
$
395,416
Additions
41,710
87
41,797
Changes to environmental rehabilitation provision (Note 6)
(3,478
)
-
(3,478
)
Amortization and Depreciation
-
(187
)
(187
)
Balance at December 31, 2018
433,347
201
433,548
Gross carrying value
433,347
1,365
434,712
Accumulated depreciation and impairment
-
(1,164
)
(1,164
)
Mineral Property
December 31, 2019
December 31, 2018
Mineral property acquisition and interest costs
$
79,625
$
112,002
Mine plan and development
51,388
48,383
Environmental
142,814
133,638
Consulting and wages
58,610
55,076
Reclamation and remediation (Note 6)
46,899
56,811
Site activities
29,942
26,488
Mine equipment
78
949
Total
$
409,356
$
433,347 In November 2005, the Company acquired from Cliffs Erie LLC, a subsidiary of Cleveland Cliffs Inc. (together “Cliffs”) large parts of the Erie Plant, a
processing facility located approximately six miles from the ore body. In December 2006, the Company acquired from Cliffs additional 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. As part of the consideration, the Company indemnified Cliffs for reclamation and remediation obligations of the acquired property (see Note 6). During 2019, the Company capitalized development costs of $19.205 million (2018 - $21.150 million) necessary to bring the Project to commercial production.
In addition, borrowing costs directly attributable to the Project were capitalized in the amount of $14.751 million (2018 - $20.560 million). As Project 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, 2019. The Company regularly assesses whether there are indicators of asset impairment. During the fourth quarter of 2019, indicators were identified including
updates to the Project and developments related to ongoing legal challenges which potentially affect the timing of the Project and resulted in an asset impairment in the amount of $47.168 million. The recoverable amounts of property, plant and
equipment and intangible assets were measured based on FVLCD, determined by assessing future expected cash flows based on future business plans, both underpinned and supported by life of mine plans. The valuation assessment uses the most recent
reserve and resource estimates, relevant cost assumptions and market forecasts of commodity prices discounted using an operation specific weighted average cost of capital rate of 8.2%. The valuation is sensitive to price of copper (assumptions
between $2.81 and $2.97 per pound were used), nickel (assumptions between $6.95 and $7.53 per pound were used) and palladium (assumptions between $1,139 and $1,489 per ounce were used) and a change in the pricing outlook may result in additional
review of the Project. The determination of FVLCD used Level 3 valuation techniques.

Intangibles

Intangibles12 Months Ended
Dec. 31, 2019
Disclosure of detailed information about intangible assets [abstract]
Intangibles5.
Intangibles Details of the Intangibles are as follows:
Year ended December 31,
2019
2018
Intangibles – beginning of period
$
24,185
$
3,130
Additions
195
21,055
Intangibles – end of period
$
24,380
$
24,185 In October 2017, the Company entered into an agreement with EIP Credit Co., LLC to reserve wetland mitigation bank credits the Company can use for the
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. Annual option payments of $0.250
million are expensed as incurred whereas option exercise payments will be recorded to Intangibles and transferred to Mineral Property, Plant and Equipment once placed into service. During 2018, the Company exercised part of its rights and
purchased wetland mitigation bank credits, which resulted in a $21.055 million addition to Intangibles. During 2019, the Company recorded $0.195 million related to software costs (2018 - $nil).

Environmental Rehabilitation Pr

Environmental Rehabilitation Provision12 Months Ended
Dec. 31, 2019
Disclosure of Environmental Rehabilitation Provision [Abstract]
Environmental Rehabilitation Provision6.
Environmental Rehabilitation Provision Details of the Environmental Rehabilitation Provision are as follows:
Year ended December 31,
2019 2018
Environmental Rehabilitation Provision – beginning of period
$
61,107
$
65,402
Change in estimate
(9,912
)
(3,478
)
Liabilities discharged
(742
)
(2,613
)
Accretion expense
2,072
1,796
Environmental Rehabilitation Provision – end of period
52,525
61,107
Less current portion
(1,276
)
(1,693
)
Non-current portion
$
51,249
$
59,414 Federal, state and local laws and regulations concerning environmental protection affect the Company’s assets. As part of the consideration for the asset
acquisitions from Cliffs (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. The Company’s best estimate of the
environmental rehabilitation provision as at December 31, 2019 was $52.525 million (December 31, 2018 - $61.107 million)
based on estimated cash flows required to settle this obligation in present day costs of $70.480 million (December 31, 2018 -
$71.146 million), a projected inflation rate of 2.2% (December 31, 2018 – 2.0%), a market risk-free nominal interest
rate (“discount rate”) of 4.0% (December 31, 2018 – 3.13%) and expenditures expected to occur over a period
of approximately 30 years. During 2019, the Company changed its estimate for determining the discount rate in order to
better reflect the expected rates over the period of future cash flows. This change in estimate resulted in a
$9.9 million decrease to the environmental rehabilitation provision during 2019 and was accounted for prospectively as a
change in accounting estimate in accordance with IAS 8, Accounting Policies, Changes in Accounting Estimates, and
Errors. The carrying value of the provision is sensitive to the estimates and assumptions used in its
measurement. If the discount rate had been 1% lower than management’s estimate, the liability would have
increased by $8.3 million as at December 31, 2019 and conversely, if the discount rate had been 1% higher than
management’s estimate, the liability would have decreased by $6.6 million as at December 31, 2019. On November 1, 2018, the Company received the Permit to Mine for the Project and certain other permits from the MDNR which included a schedule for financial
assurance obligations, including required cash contributions to a trust fund. The Company has satisfied its current financial assurance obligations primarily by establishing and contributing $10.0 million in restricted deposits to a trust fund
(December 31, 2019 - $11.198 million) and providing $65.0 million in surety bonds and letters of credit, with the MDNR as the beneficiary in each case. Financial assurance obligations are reviewed annually based on the Company’s planned
reclamation activities, with the total assurance and related financial instruments adjusted accordingly. After the start of construction, the Company may terminate these financial instruments, partially or in full, only upon fulfilling site
reclamation requirements and receiving approval from the MDNR. Future required cash contributions to the trust fund are $2.0 million per year beginning in the first year of mining operations and continue until the eighth year after which annual
contributions will be prorated based on the expected reclamation obligation at the end of mining. In addition, the Company provided Cliffs with a $13.4 million letter of credit to satisfy requirements under the asset acquisition agreements and
related obligations.

Glencore Financing

Glencore Financing12 Months Ended
Dec. 31, 2019
Disclosure of Glencore Financing [Abstract]
Glencore Financing7.
Glencore Financing Since October 2008, the Company and Glencore have entered into a series of financing agreements comprising:

Equity – $25.0 million placement of common shares in 2009; $30.0 million placement of common shares in 2010; $20.0 million placement of common shares in 2011; $20.960 million purchase of common shares in
2013; $10.583 million purchase of common shares in the 2016 Private Placement; and a $243.435 million purchase of common shares in the 2019 Rights Offering (see Note 10);

Convertible debt (“Glencore Convertible Debt”) – $25.0 million initial principal secured convertible debentures drawn in 2008 and 2009 and up to $30 million initial principal unsecured convertible
debentures drawn and to be drawn in 2020 (see Note 16). The convertible debt balance was fully repaid with proceeds from the 2019 Rights Offering;

Non-convertible debt (“Glencore Non-Convertible Debt”) – $30.0 million initial principal secured debentures drawn in 2015; $11.0 million initial principal secured debenture drawn in 2016; $14.0 million
initial principal secured debentures drawn in 2016; $20.0 million initial principal secured debentures drawn in 2017 and 2018; and $80.0 million initial principal secured debenture drawn in 2018 with the final tranche in the amount of
$15.0 million cancelled by the Company. The non-convertible balance was fully repaid with proceeds from the 2019 Rights Offering; and

Promissory note – agreement comprising $15.0 million initial principal note drawn in August 2019. 2018 Agreement On March 23, 2018, the Company amended its financing arrangement with Glencore. The maturity date of the Convertible Debt and the Non-Convertible Debt was
extended to the earlier of (i) March 31, 2019 or (ii) the availability of at least $100 million of debt or equity financing or (iii) when the Company elects to repay the debt early and demonstrates that such repayment is prudent. The interest
rate was reduced from twelve month US dollar LIBOR plus 15.0% to twelve 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 the financing arrangement remained unchanged. In addition, the Company
agreed to issue to Glencore secured debentures with a total principal amount of up to $80 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 the Company elects to repay the debt early and demonstrates that such repayment is prudent, 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 was issued on May 7, 2018. The Tranche Q Debenture in the amount of $15.0 million and Tranche T Debenture in the amount of $10 million were issued on
October 25, 2018. The Tranche S Debenture in the amount of $20.0 million was issued on December 18, 2018. Under the extension agreement and repayment plan agreed to subsequent to December 31, 2018, the commitment to issue Tranche R in the amount
of $15.0 million was cancelled.
The March 2018 transaction was accounted for as a modification of the existing debentures with a $4.109 million modification loss consisting of the
following:

$3.142 million to increase the convertible debt carrying value to the revised cash flows discounted using the original effective interest rate of 6.7%;

$1.452 million to reduce the non-convertible debt carrying value to the revised cash flows discounted using the original effective interest rate of 14.9%;

$2.331 million to recognize fair value of the purchase warrants issued; and

$0.088 million to recognize transaction costs which were allocated on a pro rata basis to the Glencore Non-Convertible Debt and Glencore Convertible Debt. 2019 Agreements On March 22, 2019, the Company entered into an extension agreement with Glencore with respect to the secured convertible and non-convertible debt set to
mature on March 31, 2019. Glencore agreed to extend the maturity date of the debt to June 30, 2019 to provide the Company time to complete a rights offering, fully backstopped by Glencore, to raise sufficient funds to repay all outstanding debt.
In connection with the extension agreement, the Company issued 6,458,001 purchase warrants to Glencore with an expiration date of March 31, 2024 and an exercise price of $0.7368 which was approved by the NYSE American and TSX. In addition, the
Company agreed to extend the expiration date of the convertible debt exchange warrant to the earlier of March 31, 2020 or the date on which the convertible debt is fully repaid, which occurred on June 28, 2019 (see Notes 8 and 9). The March 2019 transaction was accounted for as a modification of the existing debentures with a $2.014 million modification loss
consisting of the following:

$0.810 million to increase the convertible debt carrying value to the revised cash flows discounted using the original effective interest rate of 7.3%;

$0.360 million to reduce the non-convertible debt carrying value to the revised cash flows discounted using the original effective interest rate of 14.3%; and

$1.564 million to equity reserves to recognize the fair value of the purchase warrants issued. On June 28, 2019, Glencore purchased 430,521,941 common shares under its standby commitment under the Rights Offering in addition to the
196,726,042 common shares purchased under its rights (see Note 10). Proceeds of the Rights Offering were used to repay the convertible debt (see Note 8) and non-convertible debt (see Note 9) resulting in a gain on convertible debt repayment of
$0.018 million and loss on non-convertible debt repayment of $0.008 million. On August 7, 2019, the Company issued to Glencore a
promissory note in the amount of $15.0 million with proceeds to be used for general corporate purposes. The promissory note bears interest at three month U.S. dollar LIBOR plus 6.0% and is payable on the earlier of (i) December 31, 2021 or (ii)
the availability of at least $100 million of debt or equity financing, on which date all principal and interest accrued to such date will be due and payable. Since inception, $0.501 million of interest was capitalized to the principal amount of the promissory note. Borrowing costs of $0.341 million were eligible for capitalization and these costs were capitalized during 2019.

Convertible Debt

Convertible Debt12 Months Ended
Dec. 31, 2019
Disclosure of Convertible Debt [Abstract]
Convertible Debt8.
Convertible Debt Details of the Convertible Debt are as follows:
Year ended December 31,
2019
2018
Convertible Debt – beginning of period
$
56,984
$
49,067
Transition to IFRS 9 (Note 2)
-
1,346
Convertible Debt – adjusted beginning of period
56,984
50,413
Change due to modification (Note 7)
792
3,142
Accretion and capitalized interest
2,105
3,429
Repayment
(59,881
)
-
Convertible Debt – end of period
-
56,984
Less current portion
-
(56,984
)
Non-current portion
$
-
$
- Since October 2008, the Company issued $25.0 million of secured convertible debentures to Glencore. The Company provided security on these debentures
covering all of the assets of PolyMet. These debentures bore interest at the 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, twelve month U.S. dollar LIBOR plus
15.0% beginning January 1, 2016, and twelve month U.S. dollar LIBOR plus 10.0% beginning April 1, 2018. Interest was compounded quarterly and payable in cash or by increasing the principal amount of the debentures, at the option of Glencore.
Since inception, $34.881 million of interest was capitalized to the principal amount of the debenture. All borrowing costs were eligible for capitalization and $2.105 million was capitalized during 2019. Upon closing of the Rights Offering, these
debentures were fully repaid on June 28, 2019 (see Note 10). Subsequent to December 31, 2019, the Company agreed to issue unsecured convertible debentures to Glencore in four tranches during 2020
with a total minimum principal amount of $20.0 million and total maximum principal amount of $30.0 million, the amount of
each tranche to be determined jointly by the Company and Glencore. The debentures are due on the earlier of March 31, 2023
or upon US$100 million of project financing. Interest will accrue on the unsecured debentures at 4% per annum on the balance
drawn and the principal amount of the debentures is convertible into common shares of the Company at a conversion price equal
to $0.2223. The first tranche in the amount of $7.0 million was issued on March 18, 2020 (see Note 16).

Non-Convertible Debt

Non-Convertible Debt12 Months Ended
Dec. 31, 2019
Disclosure of Non-Convertible Debt [Abstract]
Non-Convertible Debt9.
Non-Convertible Debt Details of the Non-Convertible Debt are as follows:
Year ended December 31,
2019 2018
Non-Convertible Debt – beginning of period
$
178,483
$
92,268
Transition to IFRS 9 (Note 2)
-
813
Non-Convertible Debt – adjusted beginning of period
178,483
93,081
Change due to modification (Note 7)
(352
)
(1,452
)
Accretion and capitalized interest
12,305
17,131
Funding, net of costs
-
69,723
Repayment
(190,436
)
-
Total Non-Convertible Debt
-
178,483
Less current portion
-
(178,483
)
Non-current portion
$
-
$
- Since January 2015, the Company has issued $140.0 million of secured non-convertible debentures to Glencore. The Company has provided security on these
debentures covering all of the assets of PolyMet. These debentures bore interest at twelve month U.S. dollar LIBOR plus 8.0% through December 31, 2015, twelve month U.S. dollar LIBOR plus 15.0% beginning
January 1, 2016, and twelve month U.S. dollar LIBOR plus 10.0% beginning April 1, 2018. Interest was compounded quarterly and payable in cash or by increasing the principal amount of the debentures, at the option of Glencore. Since inception,
$50.436 million of interest was capitalized to the principal amount of the debenture. All borrowing costs were eligible for capitalization and $12.305 million was capitalized during 2019. Upon closing of the Rights Offering, these debentures were
fully repaid on June 28, 2019 (see Note 10).

Share Capital

Share Capital12 Months Ended
Dec. 31, 2019
Disclosure of classes of share capital [abstract]
Share Capital10.
Share Capital
a)
Issuances for Cash and Land Acquisition On May 24, 2019, the Company filed a prospectus for an offering of rights to holders of common shares of the Company to raise up to $265.0 million in gross
proceeds (“Rights Offering”). Every shareholder received one right ("Right") for each common share owned on June 3, 2019, the Record Date, and each Right entitled the holder to acquire 2.119069 new common shares of the Company at $0.3881 per
share. This offering of Rights expired on June 26, 2019. Under the terms of a Standby Purchase Agreement,
Glencore agreed to purchase any common shares not subscribed for by holders of Rights, subject to certain conditions.
Because the Rights Offering was not fully subscribed, Glencore purchased 430,521,941 common shares under its standby
commitment in addition to the 196,726,042 common shares purchased under Glencore’s Rights resulting in Glencore owning 71.6% of the Company’s issued shares. Upon closing of the Rights Offering on June 28, 2019, the Company issued a total of 682,813,838 common shares for gross proceeds of $265.0 million. Expenses
and fees relating to the Rights Offering were $11.953 million, including a $7.690 million standby commitment fee paid to Glencore, and reduced the gross proceeds recorded as share capital. Closing of the Rights Offering triggered customary
anti-dilution provisions for outstanding warrants, share options, and unissued restricted share units. Proceeds of the Rights Offering were used to repay the convertible debt of $59.881 million owed to Glencore and non-convertible debt of $190.436
million owed to Glencore (see Notes 8 and 9). The Company and Glencore agreed to net settle Glencore’s Rights Offering subscription amount of $243.435 million against the debt amounts owed. During 2019, the Company issued 400,171 shares (2018 – 225,000 shares) pursuant to the exercise of share options for proceeds of $0.274 million (2018 - $0.151
million). During 2019, the Company issued nil shares (2018 – 590,500 shares) pursuant to the exercise of warrants for proceeds of $nil (2018 - $0.591 million). During 2019, the Company issued 78,750 shares (2018 – 128,750 shares) to maintain land purchase options with the shares valued at $0.046 million (2018 - $0.123
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
June 27, 2018. 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
underlying options pursuant to an exemption approved by the Toronto Stock Exchange. During 2019, the Company recorded $2.055 million for share-based compensation (2018 - $2.202 million) with $1.558 million expensed to
share-based compensation (2018 - $1.742 million) and $0.497 million capitalized to mineral property, plant and equipment (2018 - $0.460 million). The offsetting entries were to equity reserves for $1.986 million (2018 - $1.787 million), share
capital for $0.084 million (2018 - $0.105) and payables for a reduction of $0.015 million (2018 - $0.310 million). Total share-based compensation during 2019 comprised of $1.171 million for share options (2018 - $0.803 million), $0.800 million for
restricted shares and restricted share units (2018 - $1.294 million), and $0.084 million for issuance of unrestricted shares (2018 - $0.105 million). Exercise of share options and warrants and vesting of restricted share units during 2019 resulted
in $1.013 million being transferred from equity reserves to share capital (2018 - $0.783 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
the share options are as follows:
Year ended December 31,
2019 2018
Number of Options
Weighted Average Exercise Price
Number of Options Weighted Average Exercise Price
Outstanding – beginning of period
22,692,002
$
0.91
21,659,002
$
0.98
Granted
3,625,000
0.81
2,503,000
0.91
Exercised
(625,000
)
0.71
(225,000
)
0.67
Expired
(1,626,002
)
1.01
(1,245,000
)
2.06
Anti-dilution price adjustment
-
(0.12
)
-
-
Outstanding – end of period
24,066,000
$
0.77
22,692,002
$
0.91 Effective June 28, 2019, the Company reduced the exercise price of all options that were outstanding prior to the Rights Offering, to reflect the dilutive
effect of the common shares that were issued in connection with the Rights Offering. The adjustment did not impact the financial statements. The weighted average share price when share options were exercised during 2019 was $0.78 (2018 - $1.00). During 2019, there were 240,000 share options net settled with 15,171 shares upon exercise (2018 – nil). The fair value of share options granted were estimated at the date of grant using the Black-Scholes pricing model with the following weighted average
assumptions:
Year ended December 31,
2019
2018
Risk-free interest rate
2.52
%
2.33% to 2.58%
Expected dividend yield
-
-
Expected forfeiture rate
-
-
Expected volatility
54.56
%
56.07% to 61.80%
Expected life in years
2.50
2.50 to 5.00
Weighted average fair value of each option
$0.29
$0.34 to $0.61 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 the share options outstanding as at December 31, 2019 are as follows:
Range of Exercise Prices
Number of options outstanding
Number of options exercisable
Weighted Average Exercise Price
Weighted Average Remaining Life
0.52 to 0.69
10,294,000
9,994,000
$
0.63
2.24
0.70 to 0.86
9,717,000
9,018,000
0.77
3.79
0.87 to 1.30
2,945,000
2,945,000
0.92
2.01
1.31 to 1.63
1,050,000
1,050,000
1.56
1.16
1.64 to 2.66
60,000
-
2.66
0.02
24,066,000
23,007,000
$
0.77
2.79 As at December 31, 2019 all outstanding share options had vested and were exercisable, with the exception of 1,059,000, which are scheduled to vest upon
completion of specific targets or dates (June 2020 – 300,000; Production – 699,000; Other – 60,000). The outstanding share options have expiry periods between 0.01 and 8.18 years and are expected to be settled in shares upon exercise.
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 the
restricted shares and restricted share units are as follows:
Year ended December 31,
2019
2018
Outstanding - beginning of period
3,347,907
3,281,030
Issued
1,725,869
1,227,004
Vested
(1,049,364
)
(1,160,127
)
Anti-dilution quantity adjustment
624,452
-
Outstanding - end of period
4,648,864
3,347,907 Effective June 28, 2019, the Company increased the number of common shares issuable for all restricted share units outstanding prior to the Rights Offering,
to reflect the dilutive effect of the common shares that were issued in connection with the Rights Offering. The adjustment did not impact the financial statements. During 2019, the Company issued 1,725,869 restricted share units (2018 – 1,227,004), which had a fair value of $1.355 million (2018 - $1.135 million) to be
expensed and capitalized over the vesting periods. During 2019, there were 95,500 restricted shares (2018 – nil) settled upon vesting in shares, 644,510 restricted share units (2018 - 843,413) settled upon
vesting with shares, and 309,354 restricted share units (2018 – 316,714) settled upon vesting with cash for $0.232 million (2018 – $0.377 million). As at December 31, 2019, outstanding restricted shares and restricted share units were scheduled to vest upon completion of specific targets (Construction
Finance – 865,575; Production – 459,272; March 2020 – 707,649; June 2020 – 126,130; January 2021 – 1,545,837; and Other – 93,750). The remaining 850,651 outstanding restricted shares and restricted share units have vested but share delivery is
deferred until retirement, termination, or death. The Company expects 972,576 outstanding restricted share units will be settled in cash and the remainder will be settled in shares as allowed under the Omnibus Plan.
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 the Company’s Annual General Meeting of
shareholders held in June 2008, the disinterested shareholders approved issuance of these shares upon achievement of Milestone 4. Regulatory approval is also required prior to issuance of these shares. Details of the bonus shares are as follows:
Year ended December 31,
2019
2018
Allocated
Authorized & Unissued
Allocated
Authorized & Unissued
Outstanding – beginning of period
2,700,000
3,640,000
3,150,000
3,640,000
Forfeited
-
-
(450,000
)
-
Outstanding – end of period
2,700,000
3,640,000
2,700,000
3,640,000 The fair value of these unissued bonus shares was being amortized until the estimated date of issuance and has now been fully amortized. During 2019, the
Company recorded $nil for amortization related to Milestone 4 bonus shares (2018 – $0.025 million) which was capitalized to Mineral Property, Plant and Equipment. During 2018, the Company also reversed $1.544 million of previously capitalized fair
value related to the forfeiture of 450,000 bonus shares by a former director of the Company.
f)
Share Purchase Warrants Details of the share purchase warrants are as follows:
Year ended December 31,
2019
2018
Number of Purchase Warrants
Weighted Average Exercise Price
Number of Purchase Warrants
Weighted Average Exercise Price
Outstanding – beginning of period
27,189,713
$
0.95
21,322,212
$
0.99
Issued (Note 7)
6,458,001
0.74
6,458,001
0.82
Anti-dilution price adjustment
-
(0.12
)
-
-
Anti-dilution quantity adjustment
4,189,466
-
-
-
Exercised
-
-
(590,500
)
1.00
Expiration (Note 7)
(6,458,001
)
0.82
-
-
Outstanding – end of period
31,379,179
$
0.80
27,189,713
$
0.95 The outstanding share purchase warrants have expiry periods between 1.80 years and 4.25 years, subject to acceleration in certain circumstances. Effective June 28, 2019, the Company increased the number of common shares issuable and reduced the exercise price of all warrants that were outstanding
prior to the Rights Offering, to reflect the dilutive effect of the common shares that were issued in connection with the Rights Offering. The adjustment did not impact the financial statements. 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:
Year ended December 31,
2019
2018
Risk-free interest rate
2.18
%
2.05
%
Expected dividend yield
-
-
Expected forfeiture rate
-
-
Expected volatility
52.59
%
54.54
%
Expected life in years
3.00
1.02
Weighted average fair value of each warrant
$
0.24
$
0.36

Finance Costs - Net

Finance Costs - Net12 Months Ended
Dec. 31, 2019
Disclosure of Finance Costs - Net [Abstract]
Finance Costs - Net11.
Finance Costs - Net Details of net finance costs are as follows:
Year ended December 31,
2019
2018
Debt accretion and capitalized interest:
Promissory note (Note 7)
$
501
$
-
Convertible debt (Note 8)
2,105
3,429
Non-convertible debt (Note 9)
12,305
17,131
Environmental rehabilitation accretion (Note 6)
2,072
1,796
Other finance costs
681
858
Less: amounts capitalized on qualifying assets
(14,751
)
(20,560
)
Finance costs
2,913
2,654
Cash interest income
(218
)
(237
)
Restricted deposits income
(1,163
)
(36
)
Finance income
(1,381
)
(273
)
Finance costs - net
$
1,532
$
2,381

Related Party Transactions

Related Party Transactions12 Months Ended
Dec. 31, 2019
Related party transactions [abstract]
Related Party Transactions12.
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:
Year ended December 31,
2019
2018
Salaries and other short-term benefits
$
2,247
$
1,956
Other long-term benefits
47
44
Share-based payment (1)
1,917
1,680
Total
$
4,211
$
3,680
(1) Agreements with senior management contain severance provisions for termination without cause or in the event of a change in control. Other than the
President and CEO, no other PolyMet director has an agreement providing for benefits upon termination. As a result of Glencore’s 71.6% ownership and majority shareholder relationship, Glencore is also a related party. In addition to the transactions described
in Notes 7, 8, 9 and 10, the Company has entered into a Technical Services Agreement with Glencore whereby the Company reimburses Glencore for Project technical support costs requested under an agreed scope of work, primarily in detailed project
design and mineral processing. During 2019, the Company recorded $0.474 million (2018 - $0.070 million) for services under this agreement.

Income Taxes

Income Taxes12 Months Ended
Dec. 31, 2019
Major components of tax expense (income) [abstract]
Income Taxes13.
Income Taxes
a)
Effective tax rate The effective tax rate differs from the cumulative Canadian federal and provincial income tax rate due to the following:
Year ended December 31,
2019
2018
Loss for the year before taxes
$
(57,903
)
$
(15,043
)
Combined statutory tax rate
27.0
%
27.0
%
Expected tax recovery
(15,634
)
(4,062
)
Difference in foreign tax rates
(914
)
(91
)
Non-deductible items
541
1,538
Change in unrecognized deferred tax and other items
16,007
2,615
Income Tax Expense / (Recovery)
$
-
$
-
b)
Deferred income tax assets and liabilities Deferred income tax assets and liabilities have been recognized in respect of the following items:
Year ended December 31,
2019
2018
Non-capital loss carry forward assets
$
16,994
$
29,353
Mineral property acquisition, exploration and development costs
(16,994
)
(29,353
)
Net deferred income tax liabilities
$
-
$
- Deferred income tax assets have not yet been recognized in respect of the following items:
Year ended December 31,
2019
2018
Non-capital loss carry forward assets
$
41,104
$
25,437
Capital loss carry forward assets
360
360
Intercompany receivable assets
2,690
2,109
Other assets
4,288
1,125
Unrecognized deferred income tax assets
$
48,442
$
29,031 As at December 31, 2019, the Company has Canadian non-capital loss carry forwards of approximately $53.8 million (December 31, 2018 - $47.6 million), which
expire between 2026 and 2039. The Company also has US federal non-capital loss carry forwards of approximately $152.3 million (December 31, 2018 - $146.7 million), of which approximately $134.9 million were generated prior to 2018 and expire
between 2020 and 2037. The remaining $17.4 million were generated in tax years since 2018 and do not expire. The Company’s US state non-capital loss carry forwards expire between 2020 and 2034. Further, US net operating loss carry forwards may
be subject to an annual limitation in the event of a 50% or greater change of ownership within a 3 year period as defined under Section 382 of the Internal Revenue Code. 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 Contingencies12 Months Ended
Dec. 31, 2019
Disclosure of Commitments and Contingencies [Abstract]
Commitments and Contingencies14.
Commitments and Contingencies In the normal course of business, the Company enters into contracts that give rise to firm commitments for future minimum payments. In addition to items
described elsewhere in these financial statements, the following table summarizes the Company's contractual obligations as at December 31, 2019:
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
$
4,533
$
4,533
$
4,533
$
-
$
-
$
-
Lease liability
616
766
107
293
302
64
Promissory note (Note 7)
15,501
16,196
-
16,196
-
-
Firm commitments
-
455
83
284
88
-
Total
$
20,650
$
21,950
$
4,723
$
16,773
$
390
$
64 The Company is involved in various claims, litigation and other matters arising in the ordinary course and conduct of business. While it is not possible to
determine the ultimate outcome of such actions at this time, and inherent uncertainties exist in predicting such outcomes, it is the Company's belief that the ultimate resolution of such actions is not reasonably likely to have a material adverse
effect on its consolidated financial position or results of operations. The assessment of contingencies inherently involves the exercise of significant judgment and estimates of the outcome of future events. As a result of the assessment, no
significant contingent liabilities have been recorded in these consolidated financial statements.

Financial Instruments and Risk

Financial Instruments and Risk Management12 Months Ended
Dec. 31, 2019
Disclosure of detailed information about financial instruments [abstract]
Financial Instruments and Risk Management15.
Financial Instruments and Risk Management The carrying values of each classification of financial instrument as at December 31, 2019 are:
Amortized Cost
Fair value through profit or loss
Total carrying value
Financial assets
Cash
$
7,401
$
-
$
7,401
Restricted deposits
809
10,640
11,449
Amounts receivable and other assets
738
2,176
2,914
Total financial assets
8,948
12,816
21,764
Financial liabilities
Accounts payable and accruals
4,408
125
4,533
Promissory note
15,501
-
15,501
Lease liabilities
616
-
616
Total financial liabilities
$
20,525
$
125
$
20,650 The carrying values of each classification of financial instrument as at December 31, 2018 are:
Amortized Cost
Fair value through profit or loss
Total carrying value
Financial assets
Cash
$
13,857
$
-
$
13,857
Restricted deposits
10,286
-
10,286
Amounts receivable
680
1,912
2,592
Total financial assets
24,823
1,912
26,735
Financial liabilities
Accounts payable and accruals
3,642
371
4,013
Convertible debt
56,984
-
56,984
Non-convertible debt
178,483
-
178,483
Total financial liabilities
$
239,109
$
371
$
239,480 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. Financial instruments measured at fair value subsequent to recognition include the restricted deposits (see Note 6) which are measured at fair value through
profit or loss using Level 1 inputs resulting in a carrying value of $10.640 million (December 31, 2018 - $nil), the amounts receivable measured at fair value through profit or loss using Level 3 inputs resulting in a carrying value of $2.176
million (December 31, 2018 - $1.912 million) and accruals representing expected payments to settle restricted share units measured at fair value through profit or loss using Level 2 inputs resulting in a carrying value of $0.125 million (December
31, 2018 - $0.371 million). The fair values of other financial assets and other financial liabilities approximate their carrying amounts due to their short-term nature. 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 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 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 liquid 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, 2019
December 31, 2018
Cash and restricted deposits
$
18,850
$
24,143
Convertible debt
-
56,984
Non-convertible debt
-
178,483
Promissory Note
$
15,501
$
- Based on the above net exposures, as at December 31, 2019, a 1% change in interest rates would have impacted the Company’s loss by approximately $0.189
million and carrying value of the promissory note by approximately $0.155 million. Credit Risk Credit risk arises on cash and restricted deposits held with banks and financial institutions, as well as credit exposure on outstanding amounts receivable
and other assets. The maximum exposure to credit risk is equal to the carrying value of the financial assets of $21.764 million. The Company’s cash and restricted deposits are primarily held through large Canadian and United States financial institutions. 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. See additional discussion in Note 1. 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 expects to have the necessary resources to carry out its plans and operations through December 31, 2020, it does not currently have
sufficient capital to complete the development of the Project and generate future profitable operations and is in discussions to arrange sufficient capital to meet these requirements. The Company’s objective is to identify the source or sources
from which it will obtain the capital required to complete the Project and manage liquidity risk (see Note 1).

Subsequent Events

Subsequent Events12 Months Ended
Dec. 31, 2019
Disclosure of non-adjusting events after reporting period [abstract]
Subsequent Events16.
Subsequent Events On March 17, 2020, the Company agreed to issue unsecured convertible debentures to Glencore in four tranches during 2020 with
a total minimum principal amount of $20.0 million and total maximum principal amount of $30.0 million, the amount of each
tranche to be determined jointly by the Company and Glencore. The debentures are due on the earlier of March 31, 2023 or upon
US$100 million of project financing. Interest will accrue on the unsecured debentures at 4% per annum on the balance drawn
and the principal amount of the debentures is convertible into common shares of the Company at a conversion price equal to
$0.2223. The first tranche in the amount of $7.0 million was issued on March 18, 2020.

Basis of Preparation (Policies)

Basis of Preparation (Policies)12 Months Ended
Dec. 31, 2019
Basis of Preparation [Abstract]
Statement of Compliancea)
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, 2020.
Basis of Consolidation and Preparationb)
Basis of Consolidation and Preparation 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 basis, except for those assets and liabilities that are measured at
revalued amounts or fair values at the end of each reporting period. All dollar amounts presented are in United States (“U.S.”) dollars unless otherwise specified.
Change in Accounting Policiesc)
Change in Accounting Policies On January 1, 2018, the Company adopted the following new accounting standards that were previously issued by the IASB. Certain other new standards and
interpretations have been issued and were effective as of January 1, 2018 and January 1, 2019 but did not have a material impact on the Company’s financial statements and are therefore not discussed below. The accounting policies discussed below reflect the Company’s adoption of IFRS 9 - Financial Instruments, effective January 1, 2018, and IFRS 16 - Leases,
which had an effective date of January 1, 2019 but for which the company early adopted as of January 1, 2018. 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. The Company adopted IFRS 9 effective January 1, 2018 on a retrospective basis without restating prior period comparatives. IFRS 9 requires financial assets to be classified into the following measurement categories: fair value through profit and loss, fair value through other
comprehensive income, and those measured at amortized cost. The determination is made at initial recognition. At transition, the amounts receivable previously classified as available-for-sale and measured at fair value through other comprehensive
income was re-classified as fair value through profit or loss with changes in fair value recognized in the statement of loss instead of through other comprehensive loss. Adoption resulted in re-classification of $0.210 million to the opening
deficit from accumulated other comprehensive loss for cumulative gains on the amounts receivable. 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 the statement of loss for the difference between the carrying amount of the old debt and the fair value of the new debt. This extinguishment accounting remains the same under IFRS 9. However, accounting
differs where the change is not significant enough to be an extinguishment. Under IAS 39, modifications would not lead to an immediate income charge, whereas, under IFRS
9, the cash flows under the modified debt are discounted using the original effective interest rate of the instrument with an immediate charge to income. Adoption of IFRS 9 resulted in a $2.159 million adjustment to increase the opening deficit as
at January 1, 2018 and increase the carrying value of convertible and non-convertible debt to reflect accounting for prior year modifications under the new standard (see Notes 8 and 9). IFRS 16 – Leases IFRS 16 replaces IAS 17 – Leases. The new standard requires capitalization of certain leases by the lessee and results in accounting treatment similar to
finance leases under IAS 17 - Leases. Exemptions for leases of very low value or short duration leases are applicable. The new standard results in an increase in lease assets and liabilities for the lessee. Under the new standard the treatment of
all lease expenses is aligned in the statement of loss and comprehensive loss with depreciation, and an interest expense component recognized for each lease, in line with finance lease accounting under IAS 17 - Leases. The Company early adopted IFRS 16 effective January 1, 2018 on a modified retrospective basis without restating prior period comparatives. As a result, the
Company recorded a $0.211 million lease asset and corresponding lease liability for the one qualifying office lease that will be recognized over the remaining term. The Company’s other leases (see Note 3) are leases to explore mining rights, which
are excluded from IFRS 16’s scope. The following table summarizes the impact of adopting IFRS 9 - Financial Instruments and IFRS 16 - Leases:
Consolidated Balance Sheet Impact
Dec 31, 2017
IFRS 9
IFRS 16
Jan 1, 2018
Mineral Property, Plant and Equipment
$
395,205
$
-
$
211
$
395,416
Accounts Payable and Accruals
3,630
-
211
3,841
Convertible Debt
49,067
1,346
-
50,413
Non-Convertible Debt
92,268
813
-
93,081
Equity Reserves
60,505
(210
)
-
60,295
Deficit
$
(132,497
)
$
(1,949
)
$
-
$
(134,446
)
Critical Accounting Estimatesd)
Critical Accounting Estimates The preparation of consolidated financial statements in conformity with IFRS requires the use of certain critical accounting estimates. This requires
management to make 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 used in the preparation of the consolidated financial statements are as follows: 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, metal 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 prices for
its products, based on current and long-term historical average price trends. Changes in the proven and probable reserve estimates may impact the carrying value of property, plant and equipment, rehabilitation provisions, deferred tax amounts and
depreciation, depletion and amortization. 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 reflecting current market assessments of the time value of money. The Company’s estimates of its 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, changes in operating plans, or changes in cost estimates. 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. The likelihood of new regulations and overall effect upon the Company may vary greatly and are not
predictable. The provision for environmental rehabilitation obligations represents management’s best estimate of the present value of the future cash outflows required to
settle the liability (see Note 6).
Critical Accounting Judgmentse)
Critical Accounting Judgments The preparation of consolidated financial statements in conformity with IFRS requires the use of certain critical accounting judgments. This requires
management to make judgments 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 judgments used in the preparation of the consolidated financial statements are as follows: Impairment of non-financial assets The Company considers both external and internal sources of information in assessing whether there are any indications of impairment. External sources of
information 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. Internal sources of information include indications of economic performance
of the asset. Going concern assumptions The Company must assess its ability to continue as a going concern and prepare financial statements on a going concern basis unless it either intends to
liquidate or cease trading or has no realistic alternative but to do so. In assessing whether the going concern assumption is appropriate, the Company takes into account all available information about the future, which is at least, but is not
limited to, twelve months from the end of the reporting period.
Cash and Restricted DepositsCash and Restricted Deposits Cash include amounts held in banks and highly liquid investments with original maturities of three months or less. Restricted deposits are held in a trust
account and invested in highly liquid investments with a major financial institution as security and collateral for reclamation activities.
Financial AssetsFinancial Assets All financial assets are initially recorded at fair value and designated upon inception as one of the following categories: fair value through profit or loss
(“FVTPL”) or amortized cost. Financial assets classified as FVTPL are measured at fair value with gains and losses recognized through profit and loss. Financial assets classified as amortized cost 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 allocating interest income over the relevant period. The effective interest rate is
the rate that discounts estimated future cash flows through the expected life of the financial asset, or, where appropriate, a shorter period. Loss allowances are recognized for Expected Credit Losses (“ECL”) for amounts receivable and other
assets not measured at FVTPL. Loss allowances for amounts receivable and other assets are measured at an amount equal to lifetime ECL. ECL is a probability-weighted estimate and measured as the present value of all cash shortfalls including the
impact of forward looking information. The loss allowance is presented as a deduction to amounts receivable and other assets. Transaction costs associated with FVTPL financial assets are expensed as incurred, while transaction costs associated
with amortized cost financial assets are included in the initial carrying amount of the asset (see Note 15).
Mineral PropertyMineral Property Exploration costs are incurred to discover mineral resources. Evaluation costs are incurred to assess the technical feasibility and commercial viability of
the resources found. Exploration and evaluation costs incurred prior to receipt of a feasibility study or Definitive Feasibility Study (“DFS”) confirming the technical feasibility and commercial viability of extracting the mineral resource 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. Development costs are capitalized to the extent they are necessary to bring the property to commercial production and are directly attributable to an area of interest or capable of being reasonably allocated to an
area of interest. NorthMet entered the development stage effective October 1, 2006 following receipt of the DFS. Upon commencement of production, related mineral property acquisition and development costs will be amortized on a unit of production basis over the
estimated proven and probable mineral reserves not to exceed the assets’ useful lives.
Plant and EquipmentPlant 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.
LeasesLeases The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost,
which comprises the initial amount of the lease liability, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any
lease incentives received. The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The lease
liability is initially measured at the present value of the lease payments, discounted using the incremental borrowing rate.
IntangiblesIntangibles Intangibles include wetland credits and software. Acquisition costs are capitalized until the asset is used, sold, or abandoned. Wetland credits are used
to offset and mitigate wetlands disturbed during construction and operation of the Project. 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. Software is amortized over the useful life once placed into service.
Financial LiabilitiesFinancial Liabilities All financial liabilities are initially recorded at fair value and designated upon inception as FVTPL or other financial liabilities. Financial liabilities
classified as FVTPL are initially recognized at fair value with directly attributable transaction costs expensed as incurred. At the end of each reporting period, 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. Financial liabilities classified as other financial liabilities are initially recognized at fair value less directly attributable transaction costs and subsequently
measured at amortized cost using the effective interest method which calculates the amortized cost of a financial liability and allocates interest expense over the expected life of the financial liability. Exchanges of instruments and modifications to debt are assessed using quantitative and qualitative factors to consider whether the exchange or modification
constitutes an extinguishment of the original financial liability and establishment of a new financial liability. In the case of extinguishment, any fees or costs incurred are recognized in profit or loss in the period in which they arise. Where
the terms in an exchange or modification are not assessed to be substantially different, a modification gain or loss is recognized at an amount equal to the difference between the modified cash flows discounted at the original effective interest
rate and the carrying value of the debt. The carrying value of the debt is adjusted for this modification gain or loss, directly attributable transaction costs, and any cash paid to or received from the debt holder (see Note 15).
Borrowing costsBorrowing 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 CompensationShare‑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 expected to
be settled in shares is amortized over the vesting period. For awards expected to be settled in cash, the change in market value and corresponding liability is adjusted to fair
value at each reporting period. The award is accrued and 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 or removed from liabilities. 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 WarrantsShare Purchase Warrants The Company issues share purchase warrants in connection with certain financing 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.
Foreign Currency TranslationForeign 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.
Loss Per ShareLoss 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 TaxesIncome Taxes and Deferred Taxes The income tax expense or benefit for the year consists of 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 includes 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.

Basis of Preparation (Tables)

Basis of Preparation (Tables)12 Months Ended
Dec. 31, 2019
Basis of Preparation [Abstract]
Schedule of Impact of Adopting Financial InstrumentsThe following table summarizes the impact of adopting IFRS 9 - Financial Instruments and IFRS 16 - Leases:
Consolidated Balance Sheet Impact
Dec 31, 2017
IFRS 9
IFRS 16
Jan 1, 2018
Mineral Property, Plant and Equipment
$
395,205
$
-
$
211
$
395,416
Accounts Payable and Accruals
3,630
-
211
3,841
Convertible Debt
49,067
1,346
-
50,413
Non-Convertible Debt
92,268
813
-
93,081
Equity Reserves
60,505
(210
)
-
60,295
Deficit
$
(132,497
)
$
(1,949
)
$
-
$
(134,446
)

Mineral Property, Plant and E_2

Mineral Property, Plant and Equipment (Tables)12 Months Ended
Dec. 31, 2019
Disclosure of detailed information about property, plant and equipment [abstract]
Schedule of Mineral Property, Plant, and EquipmentDetails of the Mineral Property, Plant and Equipment are as follows:
Net Book Value
Mineral Property
Plant and Equipment
Total
Balance at December 31, 2018
433,347
201
433,548
Additions
33,956
746
34,702
Disposals
(867
)
-
(867
)
Changes to environmental rehabilitation provision (Note 6)
(9,912
)
-
(9,912
)
Asset Impairment
(47,168
)
-
(47,168
)
Amortization and Depreciation
-
(171
)
(171
)
Balance at December 31, 2019
$
409,356
$
776
$
410,132
Gross carrying value
456,524
1,931
458,455
Accumulated depreciation and impairment
(47,168
)
(1,155
)
(48,323
)
Net Book Value
Mineral Property
Plant and Equipment
Total
Balance at January 1, 2018
$
395,115
$
301
$
395,416
Additions
41,710
87
41,797
Changes to environmental rehabilitation provision (Note 6)
(3,478
)
-
(3,478
)
Amortization and Depreciation
-
(187
)
(187
)
Balance at December 31, 2018
433,347
201
433,548
Gross carrying value
433,347
1,365
434,712
Accumulated depreciation and impairment
-
(1,164
)
(1,164
)
Mineral Property
December 31, 2019
December 31, 2018
Mineral property acquisition and interest costs
$
79,625
$
112,002
Mine plan and development
51,388
48,383
Environmental
142,814
133,638
Consulting and wages
58,610
55,076
Reclamation and remediation (Note 6)
46,899
56,811
Site activities
29,942
26,488
Mine equipment
78
949
Total
$
409,356
$
433,347

Intangibles (Tables)

Intangibles (Tables)12 Months Ended
Dec. 31, 2019
Disclosure of detailed information about intangible assets [abstract]
Schedule of Intangibles AssetsDetails of the Intangibles are as follows:
Year ended December 31,
2019
2018
Intangibles – beginning of period
$
24,185
$
3,130
Additions
195
21,055
Intangibles – end of period
$
24,380
$
24,185

Environmental Rehabilitation _2

Environmental Rehabilitation Provision (Tables)12 Months Ended
Dec. 31, 2019
Disclosure of Environmental Rehabilitation Provision [Abstract]
Schedule of Environmental Rehabilitation ProvisionDetails of the Environmental Rehabilitation Provision are as follows:
Year ended December 31,
2019 2018
Environmental Rehabilitation Provision – beginning of period
$
61,107
$
65,402
Change in estimate
(9,912
)
(3,478
)
Liabilities discharged
(742
)
(2,613
)
Accretion expense
2,072
1,796
Environmental Rehabilitation Provision – end of period
52,525
61,107
Less current portion
(1,276
)
(1,693
)
Non-current portion
$
51,249
$
59,414

Convertible Debt (Tables)

Convertible Debt (Tables)12 Months Ended
Dec. 31, 2019
Disclosure of Convertible Debt [Abstract]
Schedule of Convertible DebtDetails of the Convertible Debt are as follows:
Year ended December 31,
2019
2018
Convertible Debt – beginning of period
$
56,984
$
49,067
Transition to IFRS 9 (Note 2)
-
1,346
Convertible Debt – adjusted beginning of period
56,984
50,413
Change due to modification (Note 7)
792
3,142
Accretion and capitalized interest
2,105
3,429
Repayment
(59,881
)
-
Convertible Debt – end of period
-
56,984
Less current portion
-
(56,984
)
Non-current portion
$
-
$
-

Non Convertible Debt (Tables)

Non Convertible Debt (Tables)12 Months Ended
Dec. 31, 2019
Disclosure of Non-Convertible Debt [Abstract]
Schedule of Non Convertible DebtDetails of the Non-Convertible Debt are as follows:
Year ended December 31,
2019 2018
Non-Convertible Debt – beginning of period
$
178,483
$
92,268
Transition to IFRS 9 (Note 2)
-
813
Non-Convertible Debt – adjusted beginning of period
178,483
93,081
Change due to modification (Note 7)
(352
)
(1,452
)
Accretion and capitalized interest
12,305
17,131
Funding, net of costs
-
69,723
Repayment
(190,436
)
-
Total Non-Convertible Debt
-
178,483
Less current portion
-
(178,483
)
Non-current portion
$
-
$
-

Share Capital (Tables)

Share Capital (Tables)12 Months Ended
Dec. 31, 2019
Disclosure of classes of share capital [line items]
Schedule of Stock Options ActivitiesDetails of
the share options are as follows:
Year ended December 31,
2019 2018
Number of Options
Weighted Average Exercise Price
Number of Options Weighted Average Exercise Price
Outstanding – beginning of period
22,692,002
$
0.91
21,659,002
$
0.98
Granted
3,625,000
0.81
2,503,000
0.91
Exercised
(625,000
)
0.71
(225,000
)
0.67
Expired
(1,626,002
)
1.01
(1,245,000
)
2.06
Anti-dilution price adjustment
-
(0.12
)
-
-
Outstanding – end of period
24,066,000
$
0.77
22,692,002
$
0.91
Schedule of Fair Value of Options Granted Using Black-scholes Option Pricing ModelThe fair value of share options granted were estimated at the date of grant using the Black-Scholes pricing model with the following weighted average
assumptions:
Year ended December 31,
2019
2018
Risk-free interest rate
2.52
%
2.33% to 2.58%
Expected dividend yield
-
-
Expected forfeiture rate
-
-
Expected volatility
54.56
%
56.07% to 61.80%
Expected life in years
2.50
2.50 to 5.00
Weighted average fair value of each option
$0.29
$0.34 to $0.61
Schedule of Stock Options Outstanding and ExercisableDetails of the share options outstanding as at December 31, 2019 are as follows:
Range of Exercise Prices
Number of options outstanding
Number of options exercisable
Weighted Average Exercise Price
Weighted Average Remaining Life
0.52 to 0.69
10,294,000
9,994,000
$
0.63
2.24
0.70 to 0.86
9,717,000
9,018,000
0.77
3.79
0.87 to 1.30
2,945,000
2,945,000
0.92
2.01
1.31 to 1.63
1,050,000
1,050,000
1.56
1.16
1.64 to 2.66
60,000
-
2.66
0.02
24,066,000
23,007,000
$
0.77
2.79
Schedule of Bonus ShareDetails of the bonus shares are as follows:
Year ended December 31,
2019
2018
Allocated
Authorized & Unissued
Allocated
Authorized & Unissued
Outstanding – beginning of period
2,700,000
3,640,000
3,150,000
3,640,000
Forfeited
-
-
(450,000
)
-
Outstanding – end of period
2,700,000
3,640,000
2,700,000
3,640,000
Warrant [Member]
Disclosure of classes of share capital [line items]
Schedule of Stock Options ActivitiesDetails of the share purchase warrants are as follows:
Year ended December 31,
2019
2018
Number of Purchase Warrants
Weighted Average Exercise Price
Number of Purchase Warrants
Weighted Average Exercise Price
Outstanding – beginning of period
27,189,713
$
0.95
21,322,212
$
0.99
Issued (Note 7)
6,458,001
0.74
6,458,001
0.82
Anti-dilution price adjustment
-
(0.12
)
-
-
Anti-dilution quantity adjustment
4,189,466
-
-
-
Exercised
-
-
(590,500
)
1.00
Expiration (Note 7)
(6,458,001
)
0.82
-
-
Outstanding – end of period
31,379,179
$
0.80
27,189,713
$
0.95
Schedule of Fair Value of Options Granted Using Black-scholes Option Pricing ModelThe 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:
Year ended December 31,
2019
2018
Risk-free interest rate
2.18
%
2.05
%
Expected dividend yield
-
-
Expected forfeiture rate
-
-
Expected volatility
52.59
%
54.54
%
Expected life in years
3.00
1.02
Weighted average fair value of each warrant
$
0.24
$
0.36
Restricted Share Unit (RSU) [Member]
Disclosure of classes of share capital [line items]
Schedule of Stock Options Activities Details of the
restricted shares and restricted share units are as follows:
Year ended December 31,
2019
2018
Outstanding - beginning of period
3,347,907
3,281,030
Issued
1,725,869
1,227,004
Vested
(1,049,364
)
(1,160,127
)
Anti-dilution quantity adjustment
624,452
-
Outstanding - end of period
4,648,864
3,347,907

Finance Costs - Net (Tables)

Finance Costs - Net (Tables)12 Months Ended
Dec. 31, 2019
Disclosure of Finance Costs - Net [Abstract]
Schedule of Finance Costs NetDetails of net finance costs are as follows:
Year ended December 31,
2019
2018
Debt accretion and capitalized interest:
Promissory note (Note 7)
$
501
$
-
Convertible debt (Note 8)
2,105
3,429
Non-convertible debt (Note 9)
12,305
17,131
Environmental rehabilitation accretion (Note 6)
2,072
1,796
Other finance costs
681
858
Less: amounts capitalized on qualifying assets
(14,751
)
(20,560
)
Finance costs
2,913
2,654
Cash interest income
(218
)
(237
)
Restricted deposits income
(1,163
)
(36
)
Finance income
(1,381
)
(273
)
Finance costs - net
$
1,532
$
2,381

Related Party Transactions (Tab

Related Party Transactions (Tables)12 Months Ended
Dec. 31, 2019
Related party transactions [abstract]
Schedule of Key Management Personnel CompensationThe Company conducted transactions with senior management, directors and persons or companies related to these individuals, and paid or accrued amounts, as
follows:
Year ended December 31,
2019
2018
Salaries and other short-term benefits
$
2,247
$
1,956
Other long-term benefits
47
44
Share-based payment (1)
1,917
1,680
Total
$
4,211
$
3,680
(1)

Income Taxes (Tables)

Income Taxes (Tables)12 Months Ended
Dec. 31, 2019
Major components of tax expense (income) [abstract]
Schedule of Reconciliation of Effective Income Tax RateThe effective tax rate differs from the cumulative Canadian federal and provincial income tax rate due to the following:
Year ended December 31,
2019
2018
Loss for the year before taxes
$
(57,903
)
$
(15,043
)
Combined statutory tax rate
27.0
%
27.0
%
Expected tax recovery
(15,634
)
(4,062
)
Difference in foreign tax rates
(914
)
(91
)
Non-deductible items
541
1,538
Change in unrecognized deferred tax and other items
16,007
2,615
Income Tax Expense / (Recovery)
$
-
$
-
Schedule of Components of Deferred Tax AssetsDeferred income tax assets and liabilities have been recognized in respect of the following items:
Year ended December 31,
2019
2018
Non-capital loss carry forward assets
$
16,994
$
29,353
Mineral property acquisition, exploration and development costs
(16,994
)
(29,353
)
Net deferred income tax liabilities
$
-
$
-
Schedule of Unrecognized Deductible Temporary Differences and Unused Tax LossesDeferred income tax assets have not yet been recognized in respect of the following items:
Year ended December 31,
2019
2018
Non-capital loss carry forward assets
$
41,104
$
25,437
Capital loss carry forward assets
360
360
Intercompany receivable assets
2,690
2,109
Other assets
4,288
1,125
Unrecognized deferred income tax assets
$
48,442
$
29,031

Commitments and Contingencies (

Commitments and Contingencies (Tables)12 Months Ended
Dec. 31, 2019
Disclosure of Commitments and Contingencies [Abstract]
Schedule of Contractual ObligationsThe following table summarizes the Company's contractual obligations as at December 31, 2019:
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
$
4,533
$
4,533
$
4,533
$
-
$
-
$
-
Lease liability
616
766
107
293
302
64
Promissory note (Note 7)
15,501
16,196
-
16,196
-
-
Firm commitments
-
455
83
284
88
-
Total
$
20,650
$
21,950
$
4,723
$
16,773
$
390
$
64

Financial Instruments and Ris_2

Financial Instruments and Risk Management (Tables)12 Months Ended
Dec. 31, 2019
Disclosure of detailed information about financial instruments [abstract]
Schedule of Financial InstrumentThe carrying values of each classification of financial instrument as at December 31, 2019 are:
Amortized Cost
Fair value through profit or loss
Total carrying value
Financial assets
Cash
$
7,401
$
-
$
7,401
Restricted deposits
809
10,640
11,449
Amounts receivable and other assets
738
2,176
2,914
Total financial assets
8,948
12,816
21,764
Financial liabilities
Accounts payable and accruals
4,408
125
4,533
Promissory note
15,501
-
15,501
Lease liabilities
616
-
616
Total financial liabilities
$
20,525
$
125
$
20,650 The carrying values of each classification of financial instrument as at December 31, 2018 are:
Amortized Cost
Fair value through profit or loss
Total carrying value
Financial assets
Cash
$
13,857
$
-
$
13,857
Restricted deposits
10,286
-
10,286
Amounts receivable
680
1,912
2,592
Total financial assets
24,823
1,912
26,735
Financial liabilities
Accounts payable and accruals
3,642
371
4,013
Convertible debt
56,984
-
56,984
Non-convertible debt
178,483
-
178,483
Total financial liabilities
$
239,109
$
371
$
239,480
Schedule of Interest Rate RiskThe Company was exposed to interest rate risk through the following assets and liabilities:
December 31, 2019
December 31, 2018
Cash and restricted deposits
$
18,850
$
24,143
Convertible debt
-
56,984
Non-convertible debt
-
178,483
Promissory Note
$
15,501
$
-

Nature of Business and Liquid_2

Nature of Business and Liquidity (Details) - USD ($) $ in ThousandsMar. 27, 2020Mar. 18, 2020Dec. 31, 2019Dec. 31, 2018Dec. 31, 2017
Disclosure of detailed information about borrowings [line items]
Cash $ 7,401 $ 13,857
Secured convertible debt 56,984 $ 49,067
Secured non-convertible debt $ 178,483
Glencore [Member]
Disclosure of detailed information about borrowings [line items]
Cash7,401
Working capital deficiency $ 3,043
Percentage of ownership71.60%
Glencore [Member] | Events after reporting period [Member] | Bottom of range [Member]
Disclosure of detailed information about borrowings [line items]
Unsecured convertible debentures $ 20,000 $ 20,000
Glencore [Member] | Events after reporting period [Member] | Top of range [Member]
Disclosure of detailed information about borrowings [line items]
Unsecured convertible debentures $ 30,000 $ 30,000

Basis of Preparation (Narrative

Basis of Preparation (Narrative) (Details) $ in Thousands12 Months Ended
Dec. 31, 2019USD ($)
Basis of Preparation [Abstract]
Re-classification deficit from accumlated other comprehensive loss $ 210
Increase opening deficit and increase carrying value of convertible and non-convertible debt2,159
Adjustment in lease assests $ 211

Basis of Preparation (Schedule

Basis of Preparation (Schedule of Impact of Adopting Financial Instruments) (Details) - USD ($) $ in ThousandsDec. 31, 2019Dec. 31, 2018Jan. 02, 2018Dec. 31, 2017
Disclosure of expected impact of initial application of new standards or interpretations [line items]
Mineral Property, Plant and Equipment $ 410,132 $ 433,548 $ 395,416 $ 395,205
Accounts Payable and Accruals3,841 3,630
Convertible Debt 56,984 50,413 49,067
Non-Convertible Debt 178,483 93,081 92,268
Equity Reserves64,648 62,111 60,295 60,505
Deficit $ (207,392) $ (149,489) $ (134,446)(132,497)
IFRS 9 [Member]
Disclosure of expected impact of initial application of new standards or interpretations [line items]
Mineral Property, Plant and Equipment
Accounts Payable and Accruals
Convertible Debt1,346
Non-Convertible Debt813
Equity Reserves(210)
Deficit(1,949)
IFRS 16 [Member]
Disclosure of expected impact of initial application of new standards or interpretations [line items]
Mineral Property, Plant and Equipment211
Accounts Payable and Accruals211
Convertible Debt
Non-Convertible Debt
Equity Reserves
Deficit

Mineral Property Agreements (Na

Mineral Property Agreements (Narrative) (Details) $ in Thousands12 Months Ended
Dec. 31, 2019USD ($)
More than 5 years [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 $ 175
Paid ThroughJan. 31,
2021
Recovery of advance royalty payments $ 3,186
LMC Minerals [Member]
Disclosure of acquired receivables [line items]
Recovery of advance royalty payments $ 249
Bottom of range [Member]
Disclosure of acquired receivables [line items]
Percentage of future production royalties payable3.00%
Top of range [Member]
Disclosure of acquired receivables [line items]
Percentage of future production royalties payable5.00%

Mineral Property, Plant and E_3

Mineral Property, Plant and Equipment (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands3 Months Ended12 Months Ended
Dec. 31, 2019Dec. 31, 2019Dec. 31, 2018
Statement Line Items [Line Items]
Asset impairment $ 47,168
Weighted average cost of capital rate8.20%
Erie Plant [Member]
Statement Line Items [Line Items]
Amount paid for acquisition in associated infrastructure $ 18,900
Fair market value shares $ 13,953
Shares issued for acquisition9,200,547
Borrowing costs $ 14,751 $ 20,560
Development costs $ 19,205 $ 21,150
Copper [Member] | Bottom of range [Member]
Statement Line Items [Line Items]
Assumptions of sensitive price $ 2.81
Copper [Member] | Top of range [Member]
Statement Line Items [Line Items]
Assumptions of sensitive price2.97
Nickel [Member] | Bottom of range [Member]
Statement Line Items [Line Items]
Assumptions of sensitive price6.95
Nickel [Member] | Top of range [Member]
Statement Line Items [Line Items]
Assumptions of sensitive price7.53
Palladium [Member] | Bottom of range [Member]
Statement Line Items [Line Items]
Assumptions of sensitive price1,139
Palladium [Member] | Top of range [Member]
Statement Line Items [Line Items]
Assumptions of sensitive price $ 1,489

Mineral Property, Plant and E_4

Mineral Property, Plant and Equipment (Schedule of Mineral Property, Plant, and Equipment) (Details) - USD ($) $ in Thousands12 Months Ended
Dec. 31, 2019Dec. 31, 2018
Disclosure of detailed information about property, plant and equipment [line items]
Beginning Balance $ 433,548 $ 395,205
Additions34,702 41,797
Disposals(867)
Changes to environmental rehabilitation provision (Note 6)(9,912)(3,478)
Asset Impairment(47,168)
Amortization and Depreciation(171)(187)
Ending Balance410,132 433,548
Gross Carrying Value [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning Balance434,712
Additions
Ending Balance458,455 434,712
Accumulated depreciation and impairment [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning Balance(1,164)
Additions
Ending Balance(48,323)(1,164)
Mineral Property [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning Balance433,347 395,115
Additions33,956 41,710
Disposals(867)
Changes to environmental rehabilitation provision (Note 6)(9,912)(3,478)
Asset Impairment(47,168)
Amortization and Depreciation
Ending Balance409,356 433,347
Mineral Property [Member] | Gross Carrying Value [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning Balance433,347
Ending Balance456,524 433,347
Mineral Property [Member] | Accumulated depreciation and impairment [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning Balance
Additions
Ending Balance(47,168)
Plant and Equipment [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning Balance201 301
Additions746 87
Disposals
Changes to environmental rehabilitation provision (Note 6)
Asset Impairment
Amortization and Depreciation(171)(187)
Ending Balance776 201
Plant and Equipment [Member] | Gross Carrying Value [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning Balance1,365
Ending Balance1,931 1,365
Plant and Equipment [Member] | Accumulated depreciation and impairment [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning Balance(1,164)
Additions
Ending Balance $ (1,155) $ (1,164)

Mineral Property, Plant and E_5

Mineral Property, Plant and Equipment (Schedule of Mineral Property) (Details) - USD ($) $ in ThousandsDec. 31, 2019Dec. 31, 2018Jan. 02, 2018Dec. 31, 2017
Disclosure of detailed information about property, plant and equipment [line items]
Total $ 410,132 $ 433,548 $ 395,416 $ 395,205
Mineral Property [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Mineral property acquisition and interest costs79,625 112,002
Mine plan and development51,388 48,383
Environmental142,814 133,638
Consulting and wages58,610 55,076
Reclamation and remediation (Note 6)46,899 56,811
Site activities29,942 26,488
Mine equipment78 949
Total $ 409,356 $ 433,347 $ 395,115

Intangibles (Narrative) (Detail

Intangibles (Narrative) (Details) - EIP Option on Intangible [Member] - USD ($) $ in Thousands11 Months Ended12 Months Ended
Dec. 31, 2017Dec. 31, 2019Dec. 31, 2018
Disclosure of detailed information about intangible assets [line items]
Annual option payments $ 250
Increase in intangible $ 21,055
Computer Software [Member]
Disclosure of detailed information about intangible assets [line items]
Software costs $ 195

Intangibles (Schedule of Intang

Intangibles (Schedule of Intangible Assets) (Details) - USD ($) $ in Thousands12 Months Ended
Dec. 31, 2019Dec. 31, 2018
Disclosure of detailed information about intangible assets [abstract]
Balance at beginning year $ 24,185 $ 3,130
Additions195 21,055
Balance at end of year $ 24,380 $ 24,185

Environmental Rehabilitation _3

Environmental Rehabilitation Provision (Narrative) (Details) - USD ($) $ in ThousandsNov. 01, 2018Dec. 31, 2019Dec. 31, 2018
Statement Line Items [Line Items]
Estimated environmental rehabilitation provision $ 52,525 $ 61,107
Estimated cash flows at present day cost $ 70,480 $ 71,146
Projected inflation rate2.20%2.00%
Market risk-free interest rate4.00%3.13%
Restricted cash deposits $ 10,000 $ 11,198 $ 10,286
Letter of credit65,000
Change in estimated decrease in Environmental Rehabilitation Provision9,900
Estimated liability Increase if 1% lower discount rate8,300
Estimated liability decrease if 1% higher discount rate $ 6,600
Acquisition Agreement [Member]
Statement Line Items [Line Items]
Letter of credit13,400
Future contribution to trust fund through 1 to 8 mine year $ 2,000

Environmental Rehabilitation _4

Environmental Rehabilitation Provision (Schedule of Environmental Rehabilitation Provision) (Details) - USD ($) $ in Thousands12 Months Ended
Dec. 31, 2019Dec. 31, 2018
Disclosure of Environmental Rehabilitation Provision [Abstract]
Environmental Rehabilitation Provision - beginning of period $ 61,107 $ 65,402
Change in estimate(9,912)(3,478)
Liabilities discharged(742)(2,613)
Accretion expense2,072 1,796
Environmental Rehabilitation Provision - end of period52,525 61,107
Less current portion(1,276)(1,693)
Non-current portion $ 51,249 $ 59,414

Glencore Financing (Details)

Glencore Financing (Details) - USD ($)Aug. 07, 2019May 07, 2018Apr. 01, 2018Apr. 01, 2018Mar. 23, 2018Jan. 02, 2016Jun. 28, 2019Mar. 31, 2019Mar. 22, 2019Dec. 18, 2018Oct. 25, 2018Dec. 31, 2015Jul. 31, 2015Mar. 31, 2019Mar. 31, 2018Dec. 31, 2019Dec. 31, 2018Dec. 31, 2020Aug. 31, 2019Dec. 31, 2017Dec. 31, 2016Dec. 31, 2013Dec. 31, 2011Dec. 31, 2010Dec. 31, 2009Dec. 31, 2008
Statement Line Items [Line Items]
Investments in associates $ 20,960,000 $ 20,000,000 $ 30,000,000 $ 25,000,000
Principal secured debentures amount $ 80,000,000 $ 80,000,000
Warrant exercise price $ 0.8231
Exercise of warrants6,458,001
Interest rate basisLIBOR plus 10.0%LIBOR plus 10.0%
Availability of debt or equity financing $ 100,000,000 $ 100,000,000
Fair value of warrants $ 2,014,000 $ 4,109,000 $ 1,564,000
Transaction costs for financing $ 88,000
Glencore [Member]
Statement Line Items [Line Items]
Common share issued430,521,941 682,813,838
Warrant exercise price $ 0.7368
Exercise of warrants6,458,001
Proceeds from common share $ 265,000,000
Gain on convertible debt repayment $ 18,000
Loss on non-convertible debt repayment $ 8,000
Glencore Convertible Debt [Member]
Statement Line Items [Line Items]
Principal secured debentures amount $ 30,000,000
Glencore Convertible Debt [Member]
Statement Line Items [Line Items]
Principal secured debentures amount25,000,000 $ 25,000,000 $ 25,000,000
Interest rate basisLIBOR plus 10.0%LIBOR plus 15.0%LIBOR plus 8.0%LIBOR plus 4.0%
Glencore Non-Convertible Debt [Member]
Statement Line Items [Line Items]
Principal secured debentures amount $ 30,000,000 $ 20,000,000 $ 20,000,000 $ 11,000,000
Interest rate basisLIBOR plus 10.0%LIBOR plus 15.0%LIBOR plus 8.0%
Borrowings costs capitalised12,305,000
Promissory Note [Member]
Statement Line Items [Line Items]
Principal secured debentures amount $ 15,000,000
Promissory Note [Member] | Glencore [Member]
Statement Line Items [Line Items]
Principal secured debentures amount $ 15,000,000
Interest rate basisLIBOR plus 6.0%
Availability of debt or equity financing $ 100,000,000
Interest capitalized to principal amount501,000
Borrowings costs capitalised $ 341,000
Private Placement [Member]
Statement Line Items [Line Items]
Investments in associates10,583,000
Rights Offering [Member]
Statement Line Items [Line Items]
Investments in associates243,435,000
Rights Offering [Member] | Glencore [Member]
Statement Line Items [Line Items]
Common share issued196,726,042
Tranche One [Member]
Statement Line Items [Line Items]
Fair value of warrants2,331,000
Convertible debt carrying value $ 810,000 $ 3,142,000
Interest rate7.30%6.70%
Tranche One [Member] | Glencore Non-Convertible Debt [Member]
Statement Line Items [Line Items]
Principal secured debentures amount $ 80,000,000 $ 14,000,000
Tranche Two [Member]
Statement Line Items [Line Items]
Convertible debt carrying value $ 360,000 $ 1,452,000
Interest rate14.30%14.90%
Tranche Two [Member] | Glencore Non-Convertible Debt [Member]
Statement Line Items [Line Items]
Principal secured debentures amount $ 15,000,000
Tranche P Debenture [Member]
Statement Line Items [Line Items]
Proceeds from debentures $ 20,000,000
Tranche Q Debenture [Member]
Statement Line Items [Line Items]
Proceeds from debentures $ 15,000,000
Tranche T Debenture [Member]
Statement Line Items [Line Items]
Proceeds from debentures $ 10,000,000
Tranche S Debenture [Member]
Statement Line Items [Line Items]
Proceeds from debentures $ 20,000,000
Tranche R Debenture [Member]
Statement Line Items [Line Items]
Proceeds from debentures $ 15,000,000

Convertible Debt (Narrative) (D

Convertible Debt (Narrative) (Details) - USD ($) $ / shares in Units, $ in ThousandsApr. 01, 2018Apr. 01, 2018Jan. 02, 2016Mar. 27, 2020Mar. 31, 2019Dec. 31, 2015Jul. 31, 2015Dec. 31, 2019Dec. 31, 2018Mar. 18, 2020Dec. 31, 2009Dec. 31, 2008
Disclosure of detailed information about borrowings [line items]
Principal secured debentures amount $ 80,000
Interest rate basisLIBOR plus 10.0%LIBOR plus 10.0%
Proceeds received $ 15,000 $ 69,723
Glencore Convertible Debt [Member]
Disclosure of detailed information about borrowings [line items]
Principal secured debentures amount25,000 $ 25,000 $ 25,000
Interest rate basisLIBOR plus 10.0%LIBOR plus 15.0%LIBOR plus 8.0%LIBOR plus 4.0%
Interest costs capitalized $ 34,881
Glencore [Member]
Disclosure of detailed information about borrowings [line items]
Principal secured debentures amount $ 140,000
Glencore [Member] | Events after reporting period [Member]
Disclosure of detailed information about borrowings [line items]
Maturity dateMar. 31,
2023
Project financing threshold amount $ 100,000
Interest rate4.00%
Conversion price $ 0.2223
Proceeds received $ 7,000
Glencore [Member] | Events after reporting period [Member] | Bottom of range [Member]
Disclosure of detailed information about borrowings [line items]
Unsecured convertible debentures20,000 $ 20,000
Glencore [Member] | Events after reporting period [Member] | Top of range [Member]
Disclosure of detailed information about borrowings [line items]
Unsecured convertible debentures $ 30,000 $ 30,000

Convertible Debt (Schedule of C

Convertible Debt (Schedule of Convertible Debt) (Details) - USD ($) $ in Thousands12 Months Ended
Dec. 31, 2019Dec. 31, 2018Jan. 02, 2018Dec. 31, 2017
Disclosure of Convertible Debt [Abstract]
Convertible Debt - beginning of period $ 56,984 $ 49,067
Transition to IFRS 9 1,346
Convertible Debt - adjusted beginning of period56,984 50,413
Change due to modification (Note 7)792 3,142
Accretion and capitalized interest2,105 3,429
Repayment(59,881)
Convertible Debt - end of period 56,984
Less current portion (56,984) $ (50,413) $ (49,067)
Non-current portion

Non-Convertible Debt (Narrative

Non-Convertible Debt (Narrative) (Details) - USD ($) $ / shares in Units, $ in ThousandsApr. 01, 2018Apr. 01, 2018Mar. 23, 2018Jan. 02, 2016Mar. 31, 2019Dec. 31, 2015Dec. 31, 2019Dec. 31, 2018Dec. 31, 2017Dec. 31, 2016
Disclosure of detailed information about borrowings [line items]
Warrant exercise price $ 0.8231
Exercise of warrants6,458,001
Principal secured debentures amount $ 80,000
Interest rate basisLIBOR plus 10.0%LIBOR plus 10.0%
Availability of debt or equity financing $ 100,000 $ 100,000
Glencore [Member]
Disclosure of detailed information about borrowings [line items]
Principal secured debentures amount $ 140,000
Glencore Non-Convertible Debt [Member]
Disclosure of detailed information about borrowings [line items]
Principal secured debentures amount $ 30,000 $ 20,000 $ 20,000 $ 11,000
Interest rate basisLIBOR plus 10.0%LIBOR plus 15.0%LIBOR plus 8.0%
Interest costs capitalized $ 50,436
Borrowing costs capitalised $ 12,305

Non-Convertible Debt (Schedule

Non-Convertible Debt (Schedule of Non Convertible Debt) (Details) - USD ($) $ in Thousands12 Months Ended
Dec. 31, 2019Dec. 31, 2018Jan. 02, 2018Dec. 31, 2017
Disclosure of detailed information about borrowings [line items]
Accretion and capitalized interest $ 2,105 $ 3,429
Total Non-Convertible Debt 178,483
Less current portion (178,483) $ (93,081) $ (92,268)
Non-current portion
Glencore [Member]
Disclosure of detailed information about borrowings [line items]
Non Convertible Debt - beginning of period178,483 92,268
Transition to IFRS 9 813
Non-Convertible Debt - adjusted beginning of period178,483 93,081
Change due to modification(352)(1,452)
Accretion and capitalized interest12,305 17,131
Funding, net of costs 69,723
Repayment $ (190,436)

Share Capital (Narrative) (Deta

Share Capital (Narrative) (Details)1 Months Ended12 Months Ended
May 24, 2019USD ($)Dec. 31, 2019USD ($)sharesyr$ / sharesDec. 31, 2018USD ($)shares$ / sharesJun. 28, 2019sharesJun. 03, 2019$ / sharessharesDec. 31, 2017sharesJun. 27, 2007shares
Disclosure of classes of share capital [line items]
Share-based compensation | $ $ 1,558,000 $ 1,742,000
Capital reserve | $ $ 1,544,000
Number of outstanding share options vested and exercisable1,059,000
Number of options outstanding24,066,000 22,692,002 21,659,002
Share capital | $ $ 526,884,000 $ 272,420,000
Weighted average share price | $ / shares $ 0.78 $ 1
Number of share units settled upon vesting options240,000
Number of shares settled with exercise shares15,171
Glencore [Member]
Disclosure of classes of share capital [line items]
Common share issued682,813,838 430,521,941
Proceeds from common share | $ $ 265,000,000
Expense and fees related to Rights Offering | $11,953,000
Commitment fee | $7,690,000
Repayment of Convertible debt | $59,881,000
Rapyament of Non-Convertible debt | $190,436,000
Settlement of offering Subsciption amount fom debt | $ $ 243,435,000
Percentage of shares owned71.60%
Glencore [Member] | Rights Offering [Member]
Disclosure of classes of share capital [line items]
Common share issued196,726,042
Rights Offering [Member]
Disclosure of classes of share capital [line items]
Common share issued2.119069
Price per share | $ / shares $ 0.3881
Proceeds from common share | $ $ 265,000,000
Land Purchase Options [Member]
Disclosure of classes of share capital [line items]
Common share issued78,750 128,750
Proceeds from common share | $ $ 46,000 $ 123,000
Omnibus Plan [Member]
Disclosure of classes of share capital [line items]
Common share issued2,500,000
Share-based compensation | $2,055,000 2,202,000
Capital amount to property | $497,000 460,000
Capital reserve | $1,986,000 1,787,000
Additional paid-in capital | $15,000 310,000
Share capital | $ $ 84,000 $ 105,000
Exercise of Share Options [Member]
Disclosure of classes of share capital [line items]
Common share issued400,171 225,000
Proceeds from common share | $ $ 274,000 $ 151,000
Exercise of Warrant [Member]
Disclosure of classes of share capital [line items]
Common share issued 590,500
Proceeds from common share | $ $ 591,000
Share Options [Member]
Disclosure of classes of share capital [line items]
Share-based compensation | $ $ 1,171,000 803,000
Share Options [Member] | Bottom of range [Member]
Disclosure of classes of share capital [line items]
Outstanding share options expire period | yr0.01
Share Options [Member] | Top of range [Member]
Disclosure of classes of share capital [line items]
Outstanding share options expire period | yr8.18
Restricted Stock Unit [Member]
Disclosure of classes of share capital [line items]
Proceeds from common share | $ $ 800,000 1,294,000
Share-based compensation | $84,000 105,000
Vesting of restricted share units | $ $ 1,013,000 $ 783,000
Number of share units settled upon vesting options309,354 316,714
Proceeds cash from vesting options | $ $ 232,000 $ 377,000
Production [Member]
Disclosure of classes of share capital [line items]
Number of outstanding share options vested and exercisable699,000
Number of options outstanding459,272
Other [Member]
Disclosure of classes of share capital [line items]
Number of outstanding share options vested and exercisable60,000
June 2020 [Member]
Disclosure of classes of share capital [line items]
Number of outstanding share options vested and exercisable300,000
Restricted Share Unit (RSU) [Member]
Disclosure of classes of share capital [line items]
Number of outstanding share options vested and exercisable850,651
Number of options outstanding4,648,864 3,347,907 3,281,030
Fair value of option | $ $ 1,355,000 $ 1,135,000
Number of share units settled upon vesting options972,576
Number of restricted shares settled upon vesting in restricted shares unit6,444,510 843,413
Number of restricted shares settled95,500
Construction Finance [Member]
Disclosure of classes of share capital [line items]
Number of options outstanding865,575
Milestone 4 Bonus Shares [Member]
Disclosure of classes of share capital [line items]
Fair value of option | $ $ 25,000
Warrant [Member]
Disclosure of classes of share capital [line items]
Number of options outstanding31,379,179 27,189,713 21,322,212
Warrant [Member] | Bottom of range [Member]
Disclosure of classes of share capital [line items]
Outstanding share options expire period1.80
Warrant [Member] | Top of range [Member]
Disclosure of classes of share capital [line items]
Outstanding share options expire period4.25
March 2020 [Member]
Disclosure of classes of share capital [line items]
Number of options outstanding707,649
June 2020 [Member]
Disclosure of classes of share capital [line items]
Number of options outstanding126,130
January 2021 [Member]
Disclosure of classes of share capital [line items]
Number of options outstanding1,545,837
Other [Member]
Disclosure of classes of share capital [line items]
Number of options outstanding93,750

Share Capital (Schedule of Stoc

Share Capital (Schedule of Stock Options Activities) (Details)12 Months Ended
Dec. 31, 2019shares$ / sharesDec. 31, 2018shares$ / shares
Disclosure of classes of share capital [abstract]
Outstanding - beginning of period | shares22,692,002 21,659,002
Granted | shares3,625,000 2,503,000
Exercised | shares(625,000)(225,000)
Expired | shares(1,626,002)(1,245,000)
Outstanding - end of period | shares24,066,000 22,692,002
Weighted average exercise price outstanding at December 31, 2019 $ 0.91 $ 0.98
Granted0.810.91
Exercised0.710.67
Expired1.012.06
Anti-dilution price adjustment(0.12)
Weighted average exercise price outstanding at December 31, 2019 $ 0.77 $ 0.91

Share Capital (Schedule of Fair

Share Capital (Schedule of Fair Value of Options Granted Using Black-Scholes Option Pricing Model) (Details)12 Months Ended
Dec. 31, 2019yr$ / sharesDec. 31, 2018yr$ / shares
Statement Line Items [Line Items]
Risk-free interest rate2.52%
Expected dividend yield
Expected forfeiture rate
Expected volatility54.56%
Expected life in years | yr2.50
Weighted average fair value of each option | $ / shares $ 0.29
Warrant [Member]
Statement Line Items [Line Items]
Risk-free interest rate2.18%2.05%
Expected dividend yield
Expected forfeiture rate
Expected volatility52.59%54.54%
Expected life in years | yr3 1.02
Weighted average fair value of each option | $ / shares $ 0.24 $ 0.36
Bottom of range [Member]
Statement Line Items [Line Items]
Risk-free interest rate2.33%
Expected volatility56.07%
Expected life in years | yr2.50
Weighted average fair value of each option | $ / shares $ 0.34
Top of range [Member]
Statement Line Items [Line Items]
Risk-free interest rate2.58%
Expected volatility61.80%
Expected life in years | yr5
Weighted average fair value of each option | $ / shares $ 0.61

Share Capital (Schedule of St_2

Share Capital (Schedule of Stock Options Outstanding and Exercisable) (Details)12 Months Ended
Dec. 31, 2019shares$ / sharesDec. 31, 2018sharesDec. 31, 2017shares
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items]
Number of options outstanding24,066,000 22,692,002 21,659,002
Number of options Exercisable23,007,000
Weighted Average Exercise Price | $ / shares $ 0.77
Weighted Average Remaining Life2 years 9 months 14 days
0.52 to 0.69 [Member]
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items]
Number of options outstanding10,294,000
Number of options Exercisable9,994,000
Weighted Average Exercise Price | $ / shares $ 0.63
Weighted Average Remaining Life2 years 2 months 27 days
0.70 to 0.86 [Member]
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items]
Number of options outstanding9,717,000
Number of options Exercisable9,018,000
Weighted Average Exercise Price | $ / shares $ 0.77
Weighted Average Remaining Life3 years 9 months 14 days
0.87 to 1.30 [Member]
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items]
Number of options outstanding2,945,000
Number of options Exercisable2,945,000
Weighted Average Exercise Price | $ / shares $ 0.92
Weighted Average Remaining Life2 years 4 days
1.31 to 1.63 [Member]
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items]
Number of options outstanding1,050,000
Number of options Exercisable1,050,000
Weighted Average Exercise Price | $ / shares $ 1.56
Weighted Average Remaining Life1 year 1 month 27 days
1.64 to 2.66 [Member]
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items]
Number of options outstanding60,000
Number of options Exercisable
Weighted Average Exercise Price | $ / shares $ 2.66
Weighted Average Remaining Life7 days

Share Capital (Schedule of Rest

Share Capital (Schedule of Restricted Shares And Share Purchase Warrant Activities) (Details)12 Months Ended
Dec. 31, 2019shares$ / sharesDec. 31, 2018shares$ / shares
Disclosure of terms and conditions of share-based payment arrangement [line items]
Outstanding - beginning of period22,692,002 21,659,002
Exercised(625,000)(225,000)
Expiration (Note 7)(1,626,002)(1,245,000)
Outstanding - end of period24,066,000 22,692,002
Weighted average exercise price outstanding at December 31, 2019 | $ / shares $ 0.91 $ 0.98
Issued | $ / shares0.810.91
Anti-dilution price adjustment | $ / shares(0.12)
Excercised | $ / shares0.710.67
Expiration | $ / shares1.012.06
Weighted average exercise price outstanding at December 31, 2019 | $ / shares $ 0.77 $ 0.91
Restricted Share Unit (RSU) [Member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Outstanding - beginning of period3,347,907 3,281,030
Issued (Note 7)1,725,869 1,227,004
Forfeited
Vested(1,049,364)(1,160,127)
Anti-dilution quantity adjustment624,452
Outstanding - end of period4,648,864 3,347,907
Warrant [Member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Outstanding - beginning of period27,189,713 21,322,212
Issued (Note 7)6,458,001 6,458,001
Anti-dilution quantity adjustment4,189,466
Exercised (590,500)
Expiration (Note 7)(6,458,001)
Outstanding - end of period31,379,179 27,189,713
Weighted average exercise price outstanding at December 31, 2019 | $ / shares $ 0.95 $ 0.99
Issued | $ / shares0.740.82
Anti-dilution price adjustment | $ / shares(0.12)
Excercised | $ / shares 1
Expiration | $ / shares0.82
Weighted average exercise price outstanding at December 31, 2019 | $ / shares $ 0.80 $ 0.95

Share Capital (Schedule of Bonu

Share Capital (Schedule of Bonus Share) (Details) - shares12 Months Ended
Dec. 31, 2019Dec. 31, 2018
Allocated Bonus Shares [Member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Outstanding share authorized2,700,000 3,150,000
Forfeited (450,000)
Outstanding share authorized2,700,000 2,700,000
Unissued Bonus Shares [Member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Outstanding share authorized3,640,000 3,640,000
Outstanding share authorized3,640,000 3,640,000

Finance Costs - Net (Schedule o

Finance Costs - Net (Schedule of Finance Costs Net) (Details) - USD ($) $ in Thousands12 Months Ended
Dec. 31, 2019Dec. 31, 2018
Debt accretion and capitalized interest:
Promissory note (Note 7) $ 501
Convertible debt (Notes 8)2,105 3,429
Non-convertible debt (Notes 9)12,305 17,131
Environmental rehabilitation provision accretion (Note 6)2,072 1,796
Other finance costs681 858
Less: amounts capitalized on qualifying assets(14,751)(20,560)
Finance costs2,913 2,654
Interest income:
Cash interest income(218)(237)
Restricted deposits income(1,163)
Finance income(1,381)(273)
Finance costs - net $ 1,532 $ 2,381

Related Party Transactions (Nar

Related Party Transactions (Narriative) (Details) - USD ($) $ in Thousands12 Months Ended
Dec. 31, 2019Dec. 31, 2018
Technical Services Agreement [Member]
Disclosure of transactions between related parties [line items]
Services received $ 474 $ 70

Related Party Transactions (Sch

Related Party Transactions (Schedule of Key Management Personnel Compensation) (Details) - USD ($) $ in Thousands12 Months Ended
Dec. 31, 2019Dec. 31, 2018
Related party transactions [abstract]
Salaries and other short-term benefits $ 2,247 $ 1,956
Other long-term benefits47 44
Share-based payment[1]1,917 1,680
Total $ 4,211 $ 3,680
[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 Thousands12 Months Ended
Dec. 31, 2019Dec. 31, 2018
Major components of tax expense (income) [abstract]
Loss for the year before taxes $ (57,903) $ (15,043)
Combined statutory tax rate27.00%27.00%
Expected tax recovery $ (15,634) $ (4,062)
Difference in foreign tax rates(914)(91)
Non-deductible items541 1,538
Change in unrecognized deferred tax and other items16,007 2,615
Income Tax Expense / (Recovery)

Income Taxes (Schedule of Compo

Income Taxes (Schedule of Components of Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in ThousandsDec. 31, 2019Dec. 31, 2018
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 liabilities16,994 29,353
Property and equipment [Member]
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Net deferred income tax liabilities $ (16,994) $ (29,353)

Income Taxes (Schedule of Unrec

Income Taxes (Schedule of Unrecognized Deferred Income Tax Assets) (Details) - USD ($) $ in Thousands12 Months Ended
Dec. 31, 2019Dec. 31, 2018
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Unrecognized deferred income tax assets $ 48,442 $ 29,031
Expiry date2020 and 2034
Loss carry forward $ 152,300 146,700
Non-capital loss [Member]
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Unrecognized deferred income tax assets $ 41,104 25,437
Expiry date2020 and 2037
Loss carry forward $ 53,800 47,600
Capital loss [Member]
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Unrecognized deferred income tax assets360 360
Intercompany Receivable Assets [Member]
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Unrecognized deferred income tax assets2,690 2,109
Other Assets [Member]
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Unrecognized deferred income tax assets $ 4,288 $ 1,125

Commitments and Contingencies_2

Commitments and Contingencies (Schedule of Contractual Obligations) (Details) - USD ($) $ in ThousandsDec. 31, 2019Dec. 31, 2018Jan. 02, 2018Dec. 31, 2017
Disclosure of maturity analysis of operating lease payments [line items]
Accounts payable and accruals $ 4,533 $ 3,925
Lease liability616
Convertible debt (Note 8) 56,984 $ 50,413 $ 49,067
Non-convertible debt (Note 9) 178,483 $ 93,081 $ 92,268
Total20,650 $ 239,480
Less than 1 year [Member]
Disclosure of maturity analysis of operating lease payments [line items]
Accounts payable and accruals4,533
Lease liability107
Promissory note (Note 7)
Firm commitments83
Total4,723
1 - 3 years [Member]
Disclosure of maturity analysis of operating lease payments [line items]
Accounts payable and accruals
Lease liability293
Promissory note (Note 7)16,196
Firm commitments284
Total16,773
3 - 5 year [Member]
Disclosure of maturity analysis of operating lease payments [line items]
Accounts payable and accruals
Lease liability302
Promissory note (Note 7)
Firm commitments88
Total390
More than 5 years [Member]
Disclosure of maturity analysis of operating lease payments [line items]
Accounts payable and accruals
Lease liability64
Promissory note (Note 7)
Firm commitments
Total64
Carrying Value [Member]
Disclosure of maturity analysis of operating lease payments [line items]
Accounts payable and accruals4,533
Lease liability616
Promissory note (Note 7)15,501
Firm commitments
Total20,650
Contractual Cash Flow [Member]
Disclosure of maturity analysis of operating lease payments [line items]
Accounts payable and accruals4,533
Lease liability766
Promissory note (Note 7)16,196
Firm commitments455
Total $ 21,950

Financial Instruments and Ris_3

Financial Instruments and Risk Management (Schedule of Financial Instrument) (Details) - USD ($) $ in ThousandsDec. 31, 2019Dec. 31, 2018Nov. 01, 2018
Financial assets
Cash $ 7,401 $ 13,857
Restricted deposits11,198 10,286 $ 10,000
Amounts receivable and other assets2,914 2,592
Total financial assets21,764 26,735
Financial liabilities
Accounts payable and accruals4,533 3,925
Promissory note15,501
Lease liabilities616
Convertible debt56,984
Non-convertible debt178,483
Total financial liabilities20,650 239,480
Loans and Receivables [Member]
Financial assets
Cash7,401 13,857
Restricted deposits809 10,286
Amounts receivable and other assets738 680
Total financial assets8,948 24,823
Financial liabilities
Accounts payable and accruals4,408 3,642
Promissory note15,501
Lease liabilities616
Convertible debt56,984
Non-convertible debt178,483
Total financial liabilities20,525 239,109
Available For Sale [Member]
Financial assets
Cash
Restricted deposits10,640
Amounts receivable and other assets2,176 1,912
Total financial assets12,816 1,912
Financial liabilities
Accounts payable and accruals125 371
Promissory note
Lease liabilities
Convertible debt
Non-convertible debt
Total financial liabilities $ 125 $ 371

Financial Instruments and Ris_4

Financial Instruments and Risk Management (Schedule of Interest Rate Risk) (Details) - USD ($) $ in Thousands12 Months Ended
Dec. 31, 2019Dec. 31, 2018Nov. 01, 2018
Disclosure of risk management strategy related to hedge accounting [line items]
Cash and restricted cash deposits $ 11,198 $ 10,286 $ 10,000
Convertible debt56,984
Non-convertible debt178,483
Promissory Note15,501
Maximum exposure to credit risk21,764
Interest rate risk [Member]
Disclosure of risk management strategy related to hedge accounting [line items]
Cash and restricted cash deposits18,850 24,143
Convertible debt 56,984
Non-convertible debt 178,483
Promissory Note15,501
Net carrying value of debt155
Foreign currency net monetary asset position $ 189

Subsequent Events (Details)

Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands1 Months Ended12 Months Ended
Mar. 27, 2020Dec. 31, 2019Dec. 31, 2018Mar. 18, 2020
Disclosure of non-adjusting events after reporting period [line items]
Proceeds received $ 15,000 $ 69,723
Glencore [Member] | Events after reporting period [Member]
Disclosure of non-adjusting events after reporting period [line items]
Maturity dateMar. 31,
2023
Project financing threshold amount $ 100,000
Interest rate4.00%
Conversion price $ 0.2223
Proceeds received $ 7,000
Glencore [Member] | Events after reporting period [Member] | Bottom of range [Member]
Disclosure of non-adjusting events after reporting period [line items]
Unsecured convertible debentures20,000 $ 20,000
Glencore [Member] | Events after reporting period [Member] | Top of range [Member]
Disclosure of non-adjusting events after reporting period [line items]
Unsecured convertible debentures $ 30,000 $ 30,000