Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2021shares | |
Document Information [Line Items] | |
Document Type | 40-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2021 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | Mountain Province Diamonds Inc. |
Entity Central Index Key | 0001004530 |
Current Fiscal Year End Date | --12-31 |
Entity Emerging Growth Company | false |
Document Annual Report | true |
Document Registration Statement | false |
Entity Interactive Data Current | Yes |
Entity Current Reporting Status | Yes |
Entity Common Stock, Shares Outstanding | 210,697,474 |
ICFR Auditor Attestation Flag | true |
Entity File Number | 001-32468 |
Entity Incorporation, State or Country Code | Z4 |
Entity Address, Address Line One | TD Canada Trust Tower – Brookfield Place |
Entity Address, Address Line Two | 161 Bay Street, Suite 1410 |
Entity Address, City or Town | Toronto |
Entity Address, State or Province | ON |
City Area Code | 416 |
Entity Address, Postal Zip Code | M5J 2S1 |
Local Phone Number | 361 3562 |
Annual Information Form | true |
Audited Annual Financial Statements | true |
Auditor Name | KPMG LLP |
Auditor Firm ID | 85 |
Auditor Location | Waterloo, ON, Canada |
Business Contact [Member] | |
Document Information [Line Items] | |
Contact Personnel Name | Registered Agent Solutions Inc. |
Entity Address, Address Line One | 99 Washington Avenue, Suite 1008 |
Entity Address, City or Town | Albany |
Entity Address, State or Province | NY |
City Area Code | 888 |
Entity Address, Postal Zip Code | 12260 |
Local Phone Number | 705 7274 |
Consolidated Balance Sheets
Consolidated Balance Sheets - CAD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash | $ 25,000 | $ 35,152 |
Amounts receivable | 877 | 797 |
Prepaid expenses and other | 820 | 2,009 |
Derivative assets | 775 | 23 |
Other assets | 319 | |
Inventories | 109,832 | 90,506 |
Total current assets | 137,623 | 128,487 |
Restricted cash | 25,144 | 15,019 |
Reclamation deposit | 250 | 250 |
Derivative assets | 162 | |
Property, plant and equipment | 714,480 | 451,411 |
Total assets | 877,497 | 595,329 |
Current liabilities | ||
Accounts payable and accrued liabilities | 36,893 | 41,010 |
Dunebridge revolving credit facility | 0 | 31,813 |
Decommissioning and restoration liability | 721 | 2,489 |
Lease obligations | 183 | 418 |
Secured notes payable | 375,517 | |
Total current liabilities | 413,314 | 75,730 |
Secured notes payable | 374,706 | |
Lease obligations | 336 | 750 |
Decommissioning and restoration liability | 92,392 | 70,443 |
Deferred income tax liabilities | 20,720 | |
Shareholders' equity: | ||
Share capital | 631,717 | 631,498 |
Share-based payments reserve | 7,469 | 6,820 |
Deficit | (289,785) | (565,952) |
Accumulated other comprehensive income | 1,334 | 1,334 |
Total shareholders' equity | 350,735 | 73,700 |
Total liabilities and shareholders' equity | $ 877,497 | $ 595,329 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of comprehensive income [abstract] | ||
Sales | $ 308,723 | $ 226,993 |
Cost of sales: | ||
Production costs | 140,099 | 153,679 |
Cost of acquired diamonds | 15,723 | 11,088 |
Depreciation and depletion | 39,173 | 63,711 |
Earnings (loss) from mine operations | 113,728 | (1,485) |
Impairment (reversal) loss on property, plant and equipment | (240,593) | 217,366 |
Exploration and evaluation expenses | 5,547 | 3,807 |
Selling, general and administrative expenses | 13,858 | 13,153 |
Operating income (loss) | 334,916 | (235,811) |
Net finance expenses | (40,373) | (39,997) |
Other income | 143 | |
Derivative (losses) gains | (67) | 127 |
Foreign exchange gains | 2,268 | 12,252 |
Income (loss) before taxes | 296,887 | (263,429) |
Deferred income taxes | (20,720) | 0 |
Net income (loss) for the year | 276,167 | (263,429) |
Total comprehensive income (loss) for the year | $ 276,167 | $ (263,429) |
Basic and diluted earnings (loss) per share | $ 1.31 | $ (1.25) |
Basic weighted average number of shares outstanding | 210,526,871 | 210,406,658 |
Diluted weighted average number of shares outstanding | 211,953,538 | 210,406,658 |
Consolidated Statements of Equi
Consolidated Statements of Equity - CAD ($) $ in Thousands | Total | Share capital | Share-based payments reserve | Deficit | Accumulated other comprehensive income |
Balance at Dec. 31, 2019 | $ 336,146 | $ 631,224 | $ 6,111 | $ (302,523) | $ 1,334 |
Balance (in Shares) at Dec. 31, 2019 | 210,392,473 | ||||
Net loss for the year | (263,429) | $ 0 | 0 | (263,429) | 0 |
Share-based payment | 983 | 0 | 983 | 0 | 0 |
Issuance of common shares –restricted share units | 0 | $ 274 | (274) | 0 | 0 |
Issuance of common shares –restricted share units (in Shares) | 98,334 | ||||
Balance at Dec. 31, 2020 | 73,700 | $ 631,498 | 6,820 | (565,952) | 1,334 |
Balance (in Shares) at Dec. 31, 2020 | 210,490,807 | ||||
Net loss for the year | 276,167 | $ 0 | 0 | 276,167 | 0 |
Share-based payment | 868 | 0 | 868 | 0 | 0 |
Issuance of common shares –restricted share units | 0 | $ 219 | (219) | 0 | 0 |
Issuance of common shares –restricted share units (in Shares) | 206,667 | ||||
Balance at Dec. 31, 2021 | $ 350,735 | $ 631,717 | $ 7,469 | $ (289,785) | $ 1,334 |
Balance (in Shares) at Dec. 31, 2021 | 210,697,474 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Operating activities: | ||
Net income (loss) for the year | $ 276,167 | $ (263,429) |
Adjustments: | ||
Net finance expenses | 40,313 | 39,907 |
Depreciation and depletion | 39,384 | 63,929 |
Premium paid on foreign curency put option | (680) | 0 |
Impairment (reversal) loss on property, plant and equipment | (240,593) | 217,366 |
Share-based payment expense | 868 | 983 |
Derivative gains (losses) | 67 | (127) |
Foreign exchange gains | (2,268) | (12,252) |
Deferred income taxes | 20,720 | 0 |
Total operating activities before non-cash operating working capital | 133,978 | 46,377 |
Changes in non-cash operating working capital: | ||
Amounts receivable | (79) | 890 |
Prepaid expenses and other | 1,188 | (830) |
Inventories | (18,399) | 11,591 |
Accounts payable and accrued liabilities | (4,110) | (6,280) |
Cash flows from (used in) operating activities | 112,578 | 51,748 |
Investing activities: | ||
Restricted cash | (10,125) | (15,019) |
Interest income | 202 | 170 |
Purchase of property, plant and equipment | (43,820) | (38,837) |
Cash flows from (used in) investing activities | (53,743) | (53,686) |
Financing activities: | ||
Payment of lease liabilities | (422) | (679) |
Proceeds from settlement of currency contracts | 0 | 3,019 |
Provided by revolving credit facility | 0 | 32,074 |
Provided by Dunebridge revolving credit facility | 3,019 | |
Provided by Dunebridge term facility | 37,505 | |
Repayment of Dunebridge term facility | (38,855) | |
Repayment of Dunebridge revolving credit facility | (31,548) | |
Financing costs | (36,474) | (35,424) |
Cash flows from (used in) financing activities | (69,794) | 2,009 |
Effect of foreign exchange rate changes on cash | 807 | 330 |
(Decrease) increase in cash | (10,152) | 401 |
Cash, beginning of year | 35,152 | 34,751 |
Cash, end of year | $ 25,000 | $ 35,152 |
Nature of Operations and Going
Nature of Operations and Going Concern | 12 Months Ended |
Dec. 31, 2021 | |
Nature of Operations [Abstract] | |
Nature of Operations and Going Concern | 1. NATURE OF OPERATIONS AND GOING CONCERN Mountain Province Diamonds Inc. (“Mountain Province” and together with its subsidiaries collectively, the “Company”) was incorporated on December 2, 1986 under the British Columbia Company Act. The Company amended its articles and continued incorporation under the Ontario Business Corporations Act effective May 8, 2006. The Company holds a 49% interest in the operating Gahcho Kué Project (“Gahcho Kué Diamond Mine” or “GK Mine” or “GK Project”) in Canada’s Northwest Territories. The Company also owns 100% of the mineral rights of the Kennady North Project (“KNP”). The address of the Company’s registered office and its principal place of business is 161 Bay Street, Suite 1410, Toronto, ON, Canada, M5J 2S1. The Company’s shares are listed on the Toronto Stock Exchange (“TSX”) under the symbol ‘MPVD’. During the year ended December 31, 2020, the Company voluntarily delisted its common shares from the NASDAQ. These consolidated financial statements have been prepared using the going concern basis of preparation which assumes that the Company will realize its assets and settle its liabilities in the normal course of business. As of December 31, 2021, the Company faces various liquidity challenges as a result of liabilities with maturity dates through December 2022 , The liabilities with approaching maturity dates in fiscal 2022 include (“RCF”) Notes have expected when O n March 28, 2022, the Company executed a US$50 million credit facility with Dunebridge, which will be secured on a subordinated basis to the Company’s existing debt, together with the issuance of warrants to purchase an aggregate o f common shares of the Corporation. This credit facility will assist in providing additional cash flows for funding operational and other costs as well as repay any portion drawn on the Dunebridge RCF on maturity. The above conditions related to the Company’s revolving credit facility, Senior Secured Notes, and short-term and long-term operational financing needs represent material uncertainties that result in substantial doubt as to the Company’s ability to continue as a going concern. These consolidated financial statements do not include the adjustments to the amounts and classification of assets and liabilities that would be necessary should the Company be unable to continue as a going concern. These adjustments may be material. Failure to meet the obligations for cash calls to fund the Company’s share of expenditures at the GK Mine may lead to De Beers Canada Inc. enforcing its remedies under the JV Agreement, which could result in, amongst other things the dilution of Mountain Province’s interest in the GK Mine, and at certain dilution levels trigger cross-default clauses within the Senior Notes. Authorization of Financial Statements These consolidated financial statements were approved by the Board of Directors on March 2 8 |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of basis of preparation [Abstract] | |
Basis of Presentation | 2. BASIS OF PRESENTATION These consolidated financial statements of the Company were prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board. The policies set out below were consistently applied to all the periods presented, except as otherwise noted. These consolidated financial statements were prepared under the historical cost convention, as modified by the revaluation of derivative assets and liabilities and are presented in thousands of Canadian dollars. The consolidated financial statements include the accounts of Mountain Province and its wholly-owned subsidiaries: ● 2435572 Ontario Inc. (100% owned) ● 2435386 Ontario Inc. (100% owned by 2435572 Ontario Inc.) ● Kennady Diamonds Inc. (100% owned) The Company’s 49% interest in the GK Mine is held through 2435386 Ontario Inc. All intercompany balances, transactions, income, expenses, profits and losses, including unrealized gains and losses have been eliminated on consolidation. The Company’s interest in the GK Mine through its joint arrangement is a joint operation under IFRS 11, Joint Arrangements, and, accordingly has recorded the assets, liabilities, revenues and expenses in relation to its interest in the joint operation. The Company’s 49% interest in the GK Mine is bound by a contractual arrangement establishing joint control over the mine through required unanimous consent of the Company and De Beers Canada Inc. (“De Beers” or the “Operator”, and together with the Company, the “Participants”) for strategic, financial and operating policies of the GK Mine. The GK Mine management committee has two representatives of each of the Company and De Beers. The Participants have appointed De Beers as the operator of the GK Mine. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Significant Accounting Policies [Abstract] | |
Significant Accounting Policies | 3. SIGNIFICANT ACCOUNTING POLICIES (i) Foreign currency The functional currency of the Company and its subsidiaries is the Canadian Dollar. In preparing the consolidated financial statements, transactions in currencies other than the Company’s functional currency are recognized at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are re-translated Non-monetary Exchange differences are recognized in profit or loss in the period in which they arise and presented in the consolidated statements of comprehensive income (loss). (ii) Share-based payments The Company maintains a Restricted Share Unit (“RSU”), Deferred Share Unit (“DSU”) and stock option plan for employees, directors, and other qualified individuals. Equity-settled transactions, which include RSUs, DSUs and stock options, are measured by reference to their fair value at the grant date. The fair values for RSU’s and DSU’s are determined using the market value of the share, as listed on the TSX, at the close of business at the grant date. The fair value for stock options is determined using a Black-Scholes option pricing model, which relies on estimates of the future risk-free interest rate, future dividend payments, future share price volatility and the expected average life of options. The Company believes this model adequately captures the substantive features of the option awards, and is appropriate to calculate their fair values. Equity-settled share-based payments to employees and others providing similar services are measured at the fair value of the equity instruments at the grant date. The fair value determined at the grant date of the equity-settled share-based payments is expensed in profit or loss over the vesting period, if any, which is the period during which the employee becomes unconditionally entitled to equity instruments, with a corresponding increase to share-based payments reserve. At the end of each reporting period, the Company revises its estimate of the number of equity instruments expected to vest, if any. (iii) Income taxes and deferred taxes The income tax expense or benefit for the year consists of two components: current and deferred. Current tax is the expected tax payable or receivable on the taxable profit or loss for the year. Current tax is calculated using tax rates and laws that were enacted or substantively enacted at the balance sheet date in each of the jurisdictions and 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 Comprehensive Income (Loss) Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences, loss carryforwards and tax credit carryforwards 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 carryforwards, and tax credit carryforwards can be utilized, a deferred tax asset is not recognized. Deferred tax assets and liabilities are not recognized if the temporary difference arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries, except where the Company is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments are only recognized to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off deferred tax assets against deferred tax liabilities and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its deferred tax assets and liabilities on a net basis. Current and deferred taxes are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred taxes are also recognized in other comprehensive income or directly in equity, respectively. (iv) Mineral properties and exploration and evaluation costs and development costs Exploration and evaluation (“E&E”) costs are those costs required to find a mineral property and determine commercial viability and technical feasibility. E&E costs include costs to establish an initial mineral resource and determine whether inferred mineral resources can be upgraded to measured and indicated mineral resources and whether measured and indicated mineral resources can be converted to proven and probable reserves. Exploration and evaluation costs consist of: ● gathering exploration data through topographical and geological studies; ● exploratory drilling, trenching and sampling; ● determining the volume and grade of the resource; ● test work on geology, metallurgy, mining, geotechnical and environmental; and ● conducting and refining engineering, marketing and financial studies. Costs in relation to these activities are expensed as incurred until such time that the technical feasibility and commercial viability of extracting the mineral resource are demonstrable. At such time, mineral properties are assessed for impairment, and an impairment loss, if any, is recognized, and future development costs will be capitalized to assets under construction. The key factors management use s are ● completion of a feasibility study; ● obtaining required permits to construct the mine; ● completion of an evaluation of the financial resources required to construct the mine; ● availability of financial resources necessary to commence development activities to construct the mine; and ● management’s determination that a satisfactory return on investment, in relation to the risks to be assumed, is likely to be obtained. The Company also recognizes exploration and evaluation costs as assets when acquired as part of a business combination, or asset purchase, or as a result of rights acquired relating to a mineral property. (v) Impairment of non-financial The carrying value of the Company’s capitalized property, plant and equipment, and exploration and evaluation assets are assessed for impairment when indicators of potential impairment are identified to exist. If any indication of impairment is identified, an estimate of the asset’s recoverable amount is calculated to determine the extent of the impairment loss, if any. The recoverable amount is determined as the higher of the fair value less costs of disposal for the asset and the asset’s value in use. In assessing the fair value, the estimated future cash flows are discounted to their present value using a discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. Impairment is determined on an asset by asset basis, whenever possible. If it is not possible to determine impairment on an individual asset basis, then impairment is considered on the basis of a cash generating unit (“CGU”). CGUs represent the lowest level for which there are separately identifiable cash inflows that are largely independent of the cash flows from other assets or the Company’s other group of assets. The Company has determined that it has two CGUs. If the carrying amount of the asset exceeds its recoverable amount, the asset is impaired and an impairment loss is charged immediately to profit or loss so as to reduce the carrying amount to its recoverable amount. For property, plant and equipment, a previously recognized impairment loss is reversed if there has been a change in the estimates previously used to determine the asset’s recoverable amount since the last impairment loss was recognized. The impairment reversal is limited to the carrying value that would have been determined, net of any applicable depreciation, had no impairment charge been recognized previously. (vi) Capitalized interest Interest costs for qualifying assets are capitalized. Qualifying assets are assets that require a significant amount of time to prepare for their intended use, including projects that are in development or construction stages. Capitalized interest costs are considered an element of the cost of the qualifying asset. Capitalization ceases when the asset is substantially complete or if active development is suspended or ceases. Where funds borrowed are directly attributable to a qualifying asset, the amount capitalized represents the borrowing costs specific to those borrowings. Interest costs are not capitalized for exploration and evaluation assets. (vii) Provisions Provisions represent liabilities to the Company for which the amount or timing is uncertain. Provisions are recognized when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation, and the amount can be reliably estimated. Provisions are not recognized for future operating losses. Provisions are measured at the present value of the expected expenditures to settle the obligation, applying a pre-tax The Company records as decommissioning and restoration liability the present value of estimated costs of legal and constructive obligations required to restore locations in the period in which the obligation is incurred. The nature of these decommissioning and restoration activities includes dismantling and removing structures, rehabilitating mines and tailings dams, dismantling operating facilities, closure of plant and waste sites, and restoration, reclamation and re-vegetation The obligation generally arises when the asset is installed or the ground and/or environment is disturbed at the production location. When the liability is initially recognized, the present value of the estimated cost is capitalized if the Company has a related asset on its balance sheet, or expensed. Costs for restoration of subsequent site damage which is created on an ongoing basis during production are provided for at their net present values and is added to inventory, and then in production costs as inventory is sold. Over time, the discounted liability is adjusted for the change in present value. The periodic unwinding of the discount is recognized in profit or loss as a finance cost called “accretion expense on decommissioning and restoration liability”. Additional disturbances or changes in rehabilitation costs will be recognized as additional capitalized costs (or exploration and evaluation expense depending on whether there was a related asset when the liability was initially recognized) and additional decommissioning and restoration liability when they occur. If it is determined that the expected costs for decommissioning and restoration are reduced, the change in the present value of the reduction is recorded as a reduction in the capitalized costs (expensed), and a reduction of the decommissioning and restoration liability. (viii) Earnings or loss per share Basic loss or earnings per share is calculated by dividing loss or earnings attributable to common shares by the weighted average number of shares outstanding during the year. The Company follows the treasury stock method in the calculation of diluted earnings per share. The treasury stock method assumes that outstanding stock options with an average exercise price below the market price of the underlying shares are exercised and the assumed proceeds are used to repurchase common shares of the Company at the average market price of the common shares for the period. (ix) Revenue recognition The Company utilizes a sales agent to facilitate the sale of rough and/or fancies and specials diamonds to the end-customer. As outlined in the joint venture agreement between the Company and De Beers Canada, fancies and specials diamonds produced at the GK mine are subject to a bid process. When De Beers is the successful bidder, the Company recognizes 49% of the bid price as revenue at the completion of the bid process, as De Beers receives the fancies and specials diamonds and the Company is paid immediately for its share by De Beers. For sales subject to the Dunebridge Sales Agreement (Note 16), the Company recognizes revenue when consideration has been received by the Company, which represents the completion of the performance obligations of the Company and when control is passed to Dunebridge. Any upside variable consideration is recognized on a net basis, when it can be estimated reliably, is not constrained by external factors out of the Company’s control, and is highly probable that a significant reversal of the amount will not occur in the future. (x) Property, plant and equipment Property, plant and equipment are stated at cost less accumulated amortization and accumulated impairment losses. Cost comprises the fair value of consideration given to acquire an asset and includes the direct charges associated with bringing the asset to the location and condition necessary to put the asset into use, as well as the future cost of dismantling and removing the asset. When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment. Replacement cost, including major inspection and overhaul expenditures are capitalized for components of property, plant and equipment, which are accounted for separately. Development costs are capitalized under assets under construction. Expenditures, including engineering to design the size and scope of the project, environmental assessment and permitting and borrowing costs are capitalized to assets under construction. Amortization is provided on property, plant and equipment. Amortization is calculated so as to allocate the cost of each asset over its expected useful life to its estimated residual value. The estimated useful lives, residual values and amortization method are reviewed at the end of each annual reporting period. Mineral properties are not amortized until the properties to which they relate are placed into commercial production, at which time the costs will be amortized on a unit-of-production Upon entering commercial production stage, capitalized costs associated with the acquisition of the mineral property or the development of the mine, are amortized using the various methods based in the asset categories as follows: Corporate assets two to seven years, straight line Vehicles three to five years, straight line Production and related equipment units of production over proven and probable reserves General infrastructure units of production over proven and probable reserves Earthmoving equipment straight line over shorter of life of mine or life of the asset Mineral properties units of production over proven and probable reserves Assets under construction not depreciated until ready for use (xi) Inventories Inventories are recorded at the lower of cost and net realizable values. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion. An impairment adjustment is made when the carrying amount is higher than the net realizable value. Rough diamonds classified as finished goods comprise diamonds that have been subject to the sorting process. Cost is determined on a weighted average cost per carat basis including production costs and value-added processing activity. As outlined in the joint venture agreement between the Company and De Beers Canada, fancies and special diamonds produced at the GK Mine are subject to a bid process. Upon a successful bid by the Company, the fancies and specials diamonds will be included in inventories and 51% of the bid amount will be paid to De Beers and capitalized to the cost of inventory. Cost for fancies and specials diamonds is determined on a weighted average cost basis including production costs and value-added processing activity plus the direct cost of acquiring the fancies and specials diamonds from De Beers. Stockpiled ore represents coarse ore that has been extracted from the mine and is available for future processing. Stockpiled ore value is based on costs incurred in bringing ore to the stockpile. Costs are added to the stockpiled ore based on current mining costs per tonne and are removed at the average cost per tonne of ore in the stockpile. Supplies inventory are consumable materials which are measured at the lower of weighted average cost and net realizable value. (xii) Capitalized stripping costs In open pit mining operations, it is necessary to remove overburden and other waste materials to access ore from which minerals can be extracted economically. The process of removing overburden and waste materials is referred to as stripping. Stripping costs incurred in order to provide initial access to the ore body (referred to as pre-production It may be also required to remove waste materials and to incur stripping costs during the production phase of the mine. The Company recognizes a stripping activity asset if all of the below conditions are met: ● It is probable that the future economic benefit (improved access to the component of the ore body) associated with the stripping activity will flow to the Company. ● The Company can identify the component of the ore body for which access has been improved. ● The costs relating to the stripping activity associated with that component can be measured reliably. The Company measures the stripping activity at cost based on an accumulation of costs incurred to perform the stripping activity that improves access to the identified component of ore, plus an allocation of directly attributable costs. The waste to ore strip ratio projected for the life of the specific orebody must be exceeded for the costs to be capitalized as stripping costs. After initial recognition, the stripping activity asset is carried at cost less depreciation and impairment losses in the same way as the existing asset of which it is a part. The stripping activity asset is depreciated over the expected useful life of the identified components of the ore body that becomes more accessible as a result of the stripping activity using the units of production method. (xiii) Financial Instruments Classification The Company classifies its financial instruments in the following categories: at fair value through profit and loss (“FVTPL”), at fair value through other comprehensive income (“FVTOCI”) or at amortized cost. The Company determines the classification of financial assets at initial recognition. The classification of debt instruments is driven by the Company’s business model for managing the financial assets and their contractual cash flow characteristics. Financial liabilities are measured at amortized cost unless they are required to be measured at FVTPL (such as instruments held for trading or derivatives) or the Company has opted to measure them at FVTPL. Asset/Liability Classification Cash Amortized cost Equity securities FVTOCI Amounts receivable Amortized cost Derivative assets FVTPL Accounts payable and accrued liabilities Amortized cost Dunebridge revolving credit facility Amortized cost Dunebridge term facility Amortized cost Secured notes payable Amortized cost Measurement Financial assets at FVTOCI Elected investments in equity instruments at FVTOCI are initially recognized at fair value plus transaction costs. Subsequently they are measured at fair value, with gains and losses arising from changes in fair value recognized in other comprehensive income. Financial assets and liabilities at amortized cost Financial assets and liabilities at amortized cost are initially recognized at fair value, plus transaction costs, and subsequently carried at amortized cost less any impairment. Financial liabilities carried at amortized cost utilize the effective interest method. The effective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or where appropriate, a shorter period, to the net carrying amount on initial recognition. Financial assets and liabilities at FVTPL Financial assets and liabilities carried at FVTPL are initially recorded at fair value and transaction costs are expensed in the consolidated statements of comprehensive income (loss). Realized and unrealized gains and losses arising from changes in the fair value of the financial assets and liabilities held at FVTPL are included in the consolidated statements of comprehensive income (loss) in the period in which they arise. Derivative asset (liabilities) related to foreign currency contracts, which become realized, are reclassified from derivative gains and losses into realized foreign exchange gains and losses. Financial assets The Company derecognizes financial assets only when the contractual rights to cash flows from the financial assets expire, or when it transfers the financial assets and substantially all the associated risks and rewards of ownership to another entity. Gains and losses on derecognition are generally recognized in the consolidated statements of comprehensive income (loss). However, gains and losses on derecognition of financial assets classified as FVTOCI are reclassified to retained earnings (deficit) as a reclassification within equity. Financial liabilities The Company derecognizes financial liabilities only when its obligations under the financial liabilities are discharged, cancelled, or expired. The difference between the carrying amount of the financial liability derecognized and the consideration paid and payable, including any non-cash (xiv) Leases At inception of a contract, the Company assesses whether a contract is, or contains, a lease based on whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Company does not recognize right-of-use low-value The Company recognizes a right-of-use right-of-use right-of-use right-of-use The lease liabilities are initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease, or if the rate cannot be readily determined, the Company’s incremental borrowing rate. The lease liabilities are subsequently measured at amortized cost using the effective interest rate method. Each lease payment is allocated between the lease liability and finance cost. The finance cost is charged to net income over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. (xv) Government grants and assistance Government grants and assistance related to expenses are presented as part of comprehensive income (loss), as a deduction to the related expense in the reporting period. |
Significant Accounting Judgment
Significant Accounting Judgments Estimates and Assumptions | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Accounting Judgements And Estimates Assumptions [Abstract] | |
Significant Accounting Judgments Estimates and Assumptions | 4. SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS The preparation of these financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities and contingent liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting periods. Judgments, estimates and assumptions are continually evaluated and are based on management’s experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. However, actual outcomes can differ materially from these estimates. The key areas where judgments, estimates and assumptions have been made are summarized below. i) Significant accounting estimates and assumptions The areas which require management to make significant estimates and assumptions in determining carrying values include, but are not limited to: a) Impairment analysis – property, plant and equipment and evaluation and exploration assets As required under IAS 36 and IFRS 6, the Company reviews its property, plant and equipment and its evaluation and exploration assets for impairment or impairment reversal based on results to date and when events and changes in circumstances indicate that the carrying value of the assets may or may not be recoverable. The assessment of fair values, including those of the CGUs for purposes of testing for potential impairment or reversal of impairment, require the use of estimates and assumptions for recoverable production, future capital requirements and operating performance, as contained in the Company’s Life of Mine (“LOM”) plans, as well as estimated long-term diamond prices, discount rates, and foreign exchange rates. Changes in any of the assumptions or estimates used in determining the fair value of property, plant and equipment could impact the impairment analysis. The Company’s LOM plans are based on detailed research, analysis and modeling to maximize Net Asset Value (“NAV”) of the CGUs. As such these plans consider the optimal level of investment, overall production levels, sequence of extraction taking into account all relevant characteristics of the ore body, including waste to ore ratios, ore grades, chemical and metallurgical properties impacting process recoveries, capacities of available extraction, haulage and processing equipment, and other factors. Therefore, the LOM plan is an appropriate basis for forecasting production output in each future year and the related production costs and capital expenditures. The LOM plans have been determined using cash flow projections from financial budgets approved by senior management. Projected future revenues reflect the forecast future production levels at the Company’s GK CGU as detailed in the LOM plans. These forecasts may include the production of material that does not currently qualify for inclusion in mineral reserve or mineral resource classification. This is consistent with the methodology used to measure value beyond proven and probably reserves when allocating the purchase price of a business combination to acquired mining assets. The fair value arrived as described above, is the Company’s estimate of fair value for accounting purposes and is not a “preliminary assessment” as defined in Canadian Securities Administrators’ National Instrument 43-101 “Standards of Disclosure for Mineral Projects”. Projected future revenues also reflect the Company’s estimates of future diamond prices, which are determined considering a combination of historic and current prices and forecast prices by industry analysts. These estimates often differ from current prices. The Company’s estimates of future cash costs of production and capital expenditures are based on LOM plans for the GK CGU. The discount rate applied to present value the net future cash flows is based on a real weighted average cost of capital. b) Mineral reserves and resources Mineral reserve and resource estimates include numerous uncertainties and depend heavily on geological interpretations and statistical inferences drawn from drilling and other data, and require estimates of the future price for the commodity and future cost of operations. The mineral reserve and resources are subject to uncertainty and actual results may vary from these estimates. Results from drilling, testing and production, as well as material changes in commodity prices and operating costs subsequent to the date of the estimate, may justify revision of such estimates. Changes in the proven and probable mineral reserves or measured and indicated and inferred mineral resources estimates may impact the carrying value of the properties. This will also impact the carrying value of the decommissioning and restoration liability and future depletion charges. c Provision for decommissioning and restoration The decommissioning and restoration liability and the accretion recorded are based on estimates of future cash flows, discount rates, and assumptions regarding timing. The estimates are subject to change and the actual costs for the decommissioning and restoration liability may change significantly. Significant assumptions exist for the determination of what constitutes decommissioning and restoration. Judgment has been applied by management to determine which decommissioning and restoration costs have been appropriately capitalized to inventory, based on the nature of the costs incurred upon reaching commercial production. d Deferred taxes Deferred income tax assets and liabilities are determined based on differences between the financial reporting and tax bases of assets and liabilities and on unused losses carried forward, and are measured using the substantively enacted tax rates that are expected to be in effect when the differences are expected to reverse or losses are expected to be utilized. Deferred tax assets are recorded to recognize tax benefits only to the extent that, based on available evidence, including forecasts which include taxable profits, it is probable that they will be realized. Significant judgment is involved in determining when an adequate track record has been established to support the accuracy of the assumptions related to the forecasts of taxable profits. |
Amounts Receivable
Amounts Receivable | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Amounts Receivable [Abstract] | |
Amounts Receivable | 5. AMOUNTS RECEIVABLE December 31, 2021 December 31, 2020 GST/HST receivable $ 722 $ 604 Other receivable 155 193 Total $ 877 $ 797 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Inventories Explanatory [Abstract] | |
Inventories | 6. INVENTORIES December 31, 2021 December 31, 2020 Ore stockpile $ 26,411 $ 9,203 Rough diamonds 44,255 48,036 Supplies inventory 39,166 33,267 Total $ 109,832 $ 90,506 Depreciation and depletion included in inventories at December 31, 2021 is $12,203 (2020 - $13,663). The amount of inventory expensed approximates cost of sales with respect to production costs incurred, and the cost of acquired diamonds. Included in the production costs is a net realizable value adjustment for $Nil that was recognized against the rough diamond and ore stockpile inventory for the year ended December 31, 2021 (2020 - $17 million). The write-down is included in the cost of sales in the statement of comprehensive income (loss) for the year ended December 31, 2020. Included in inventories and production costs, for the year ended December 31, 2021 are the Company’s 49% share of payroll and employee benefits for staff of the GK Mine of $41,054 (2020 - $34,271). |
Property, Plant And Equipment
Property, Plant And Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Property, Plant and Equipment | 7. PROPERTY, PLANT AND EQUIPMENT The Company’s property, plant and equipm e Property, plant and equipment GK Assets under construction GK Property, plant and equipment KNP Exploration and evaluation assets KNP Assets under construction KNP Total Cost At January 1, 2020 $ 856,334 $ 730 $ 90 $ 168,866 $ 1,564 $ 1,027,584 Decommissioning and restoration 9,777 - - 278 - 10,055 Additions/transfers* 36,334 5,776 - - - 42,110 At December 31, 2020 902,445 6,506 90 169,144 1,564 1,079,749 Decommissioning and restoration 12,228 - - 248 - 12,476 Additions/transfers* 45,115 3,679 122 - - 48,916 Disposals - - (90 ) - - (90 ) At December 31, 2021 $ 959,788 $ 10,185 $ 122 $ 169,392 1,564 $ 1,141,051 Accumulated depreciation At January 1, 2020 $ (355,293 ) $ - $ (23 ) $ - $ - $ (355,316 ) Depreciation and depletion** (55,643 ) - (13 ) - - (55,656 ) Impairment loss (217,366 ) - - - - (217,366 ) At December 31, 2020 (628,302 ) - (36 ) - - (628,338 ) Depreciation and depletion** (38,862 ) - (6 ) - - (38,868 ) Disposals - - 42 - - 42 Impairment reversal*** 240,593 - - - - 240,593 At December 31, 2021 $ (426,571 ) $ - $ - $ - $ - $ (426,571 ) Carrying amounts At December 31, 2020 $ 274,143 $ 6,506 $ 54 $ 169,144 $ 1,564 $ 451,411 At December 31, 2021 $ 533,217 $ 10,185 $ 122 $ 169,392 1,564 $ 714,480 *Included in additions of property, plant and equipment for GK is $34,319 (2020 - $28,939) related to deferred stripping of which $1,431 relates to the depreciation of earthmoving equipment (2020 - $1,781). **Included in depreciation and depletion is $134 of depreciation on the right-of-use ***As at December 31, 2021, an impairment reversal of property, plant and equipment was recorded at GK mine. i) Fiscal 2021 – Impairment reversal of GK mine CGU During the year ended December 31, 2021, the Company recorded a reversal of previous impairment charges of $240,593, related entirely to property, plant and equipment at the , which is itself based on average price achieved to date by the Company, excluding the year 2020, which was significantly impacted due to COVID-19. Tax expense related to the impairment reversal amounted to $20,720. After giving effect to the impairment reversal, the carrying value of the GK mine is $557 million as at December 31, 2021. The significant estimates and assumptions used for the CGUs tested in the Company’s impairment assessment for the year ended December 31, 2021 were as follows: ● estimated long-term diamond prices of US$71; ● forward U.S. ● proven and probable mineral reserves and converted resources of 22.6 million ; and ● real discount rate of 7.9%. The real discount rate was estimated based on the capital asset pricing model, for which the costs of equity are based on, among other things, estimated interest rates, market returns on equity, share volatility, leverage and risks specific to the mining sector and the GK Mine CGU. The valuation is considered to be level 3 in the fair value hierarchy due to unobservable inputs. ii) Fiscal 2020 – Impairment at GK mine CGU After the Company assessed for impairment, as at December 31 , 2020 , it was determined that an impairment loss of $217,366 on property, plant and equipment occurred. The impairment losses are specific to the GK Mine CGU. The GK Mine CGU’s recoverable amount of $281.6 million as at December 31 , 2020 was determined using the fair value less cost of disposal, which was calculated based on projected future cash flows utilizing the latest information For the assessment at December 31, 2020, these projected cash flows were prepared using a 2.5% real growth escalation factor for 2021 and a 2.5% real growth escalation factor on diamond pricing thereafter, and discounted using a post-tax |
Decommissioning And Restoration
Decommissioning And Restoration Liability | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Decommissioning And Restoration Liability [Abstract] | |
Decommissioning and Restoration Liability | 8. DECOMMISSIONING AND RESTORATION LIABILITY The decommissioning and restoration liability is the addition of the liabilities for both the GK Mine and the Kennady North Project, which are broken down separately below. The GK Mine decommissioning and restoration liability was calculated using the following assumptions as at December 31, 2021 and 2020: December 31, 2021 December 31, 2020 Expected undiscounted cash flows $ 84,128 $ 61,558 Discount rate 1.42% 0.67% Inflation rate 2.00% 2.00% Periods 2030 2030 The Kennady North Project decommissioning and restoration liability was calculated using the following assumptions as at December 31, 2021 and 2020: December 31, 2021 December 31, 2020 Expected undiscounted cash flows $ 2,467 $ 2,268 Discount rate 0.25% 0.25% Inflation rate 2.00% 2.00% Periods 2024 2024 The decommissioning and restoration liability has been calculated using expected cash flows that are current dollars, with inflation. During the year ended December 31, 2021, the decommissioning and restoration liability was changed by $19,471 (2020 – $13,364), resulting primarily from a refinement of scope and individual unit cost increases and changes in discount rates. The continuity of the decommissioning and restoration liability at December 31, 2021 and 2020 is as follows: GK Mine KNP Total Balance, at January 1, 2020 $ 56,429 $ 2,087 $ 58,516 Change in estimate of discounted cash flows 13,086 278 13,364 Accretion recorded during the year 976 76 1,052 Balance, at December 31, 2020 $ 70,491 $ 2,441 $ 72,932 Less: current portion of decommissioning and restoration liability 2,489 - 2,489 Non-current decommissioning and restoration liability, at December 31, 2020 $ 68,002 $ 2,441 $ 70,443 Change in estimate of discounted cash flows 19,223 248 19,471 Accretion recorded during the year 704 6 710 Balance, at December 31, 2021 $ 90,418 $ 2,695 $ 93,113 Less: current portion of decommissioning and restoration liability 721 - 721 Non-current decommissioning and restoration liability, at December 31, 2021 $ 89,697 $ 2,695 $ 92,392 |
Secured Notes Payable
Secured Notes Payable | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of secured notes payable [Abstract] | |
Secured Notes Payable | 9. SECURED NOTES PAYABLE On December 11, 2017, the Company completed an offering of US$330 million of senior secured notes (“Notes”), secured by a second-ranking lien on all present and future assets, property and undertakings of the Company. The secured notes pay interest in semi-annual instalments on June 15 and December 15 of each year, at a rate of 8.00% per annum, and mature on December 15, 2022. The Company has reclassed the secured notes liability from noncurrent to current for the year ended December 31, 2021 since the notes will mature on December 15, 2022. The indenture governing the secured notes contains certain restrictive covenants that limit the Company’s ability to, among other things, incur additional indebtedness, make certain dividend payments and other restricted payments, and create certain liens, in each case subject to certain exceptions. The restrictive covenant on the Company’s ability to pay potential future dividends relates to a fixed charge coverage ratio of no less than 2:1. The fixed charge coverage ratio is calculated as EBITDA over interest expense. Subject to certain limitations and exceptions, the amount of the restricted payments, which include dividends and share buybacks, is limited to a maximum dollar threshold, which is calculated at an opening basket of US$10 million plus 50% of the historical consolidated net income, subject to certain adjustments, reported from the quarter of issuance and up to the most recently available financial statements at the time of such restricted payment, plus an amount not to exceed the greater of US$15 million and 2% of total assets as defined in the indenture. As at December 31, 2021, the Company has an obligation for US$299.9 million or $379.0 million Canadian dollar equivalent from the secured notes payable (2020 - US$299.9 million or $381.7 million). December 31, 2021 December 31, 2020 Total outstanding secured notes payable $ 379,034 $ 381,674 Less: unamortized deferred transaction costs and issuance discount (3,517 ) (6,968 ) Total secured notes payable $ 375,517 $ 374,706 The secured notes payable is carried at amortized cost on the consolidated balance sheet. Revolving Credit Facility Concurrent with the Notes offering, the Company entered into a US$50 million first ranking lien revolving credit facility (“RCF”) COVID-19. remaining On September 30, 2020, the RCF was assigned to Dunebridge. The amount drawn at the time of US$22.7 million was paid by Dunebridge to Scotiabank and Nedbank Ltd. and the remaining available amount of US$2.3 million under the new Dunebridge revolving credit facility (“Dunebridge RCF”) (described in Note 10 below) was advanced to the Company. |
Dunebridge Revolving Credit Fac
Dunebridge Revolving Credit Facility And Dunebridge Term Facility | 12 Months Ended |
Dec. 31, 2021 | |
Borrowings [abstract] | |
Dunebridge Revolving Credit Facility And Dunebridge Term Facility | 10. DUNEBRIDGE REVOLVING CREDIT FACILITY AND DUNEBRIDGE TERM FACILITY On September 30, 2020, the Company entered into the Dunebridge RCF (Note 16) of up to US$25 million, with first ranking lien terms. The Dunebridge RCF carries an interest rate of 5% per annum, and was initially repayable on September 30, 2021. Interest is payable on a monthly basis. The agreement also required an upfront 1% financing fee, which was paid on September 30, 2020. The Dunebridge RCF is not subject to any financial covenants. A default would occur if the Company is unable to make the monthly interest payments, or the principal repayment. The Dunebridge RCF includes various restrictive covenants which requires that no additional indebtedness be entered into, and no new agreements related to the sale of diamonds, beyond what currently exists, without prior written approval from Dunebridge. Under the Dunebridge RCF, permitted distributions to third parties (which include dividends) are subject to the Company having a net debt to EBITDA ratio of less than or equal to 1.75:1. Net debt is equal to total debt, less cash and cash equivalents. The aggregate amount of all distributions paid during the rolling four quarters up to and including the date of such distribution does not exceed 25% of free cash flows (“FCF”) during such period. FCF is defined as EBITDA minus, without duplication, (a) capital expenditures, (b) cash taxes, (c) any applicable standby fee, other fees or finance costs payable to the finance parties in connection with the Dunebridge RCF, (d) interest expenses and (e) any indebtedness (including mandatory prepayments) permitted under the existing agreement. Also, the available liquidity after payment of a distribution must be greater than or equal to US$60 million for distributions paid during a quarter ending March 31, or US$50 million for other quarters, where the aggregate amount of the all-advances On September 24, 2021, the Dunebridge RCF was extended with the same restrictive covenants described above. The repayment date was extended to March 31, 2022, and an upfront 2% extension fee of US$0.5 million was paid. The extension of the Dunebridge RCF was subject to the Dunebridge Term Facility (“Term Facility”) (below) being fully repaid, and terminated. The Dunebridge RCF continues to carry an interest rate of 5% per annum. The upfront fee is categorized as deferred financing fee against the loan and amortized over the term of the loan. As at December 31, 2021, $319 of deferred financing fee is remaining and classified as other assets on the consolidated balance sheet. Subsequent to the year ended December 31, 2021, the Company drew and repaid US$5M from the Dunebridge RCF for funding operations. Dunebridge Term Facility On May 12, 2021, the Company, with Dunebridge as lender, added a US$33 million Term Facility to its existing US$25 million Dunebridge RCF, with first ranking lien terms. The Term Facility bears interest at a fixed rate of 10% per annum, net of withholding taxes, payable monthly. In addition to the interest, a flat 5% fee is payable on each advance made thereunder. The Term Facility reduced in size to a maximum of US$22 million on July 15, 2021 and matured on December 31, 2021. On May 17, 2021, a US$23 million advance was drawn by the Company, followed by a US$8 million draw in June 2021. The Term Facility contained a cash sweep requirement on the following month’s projected minimum cash balances above US$2 million. The cash sweep is calculated 5 business days after each diamond sale in Antwerp, Belgium and amounts swept could be redrawn without fee. On June 30, 2021, the Company repaid US$9 million ahead of the reduction of size requirement to US$22 million on July 15, 2021. The Company also repaid a cash sweep amount of US$2 million in June 2021, and US$8.5 million in July 2021. On September 23, 2021, the Company had fully repaid the Term Facility, and in accordance with the Dunebridge RCF extension described above, was terminated. |
Net Finance Expense
Net Finance Expense | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Net Finance Income Expense Explanatory [Abstract] | |
Net Finance Expenses | 11. NET FINANCE EXPENSE Year ended December 31, 2021 Year ended December 31, 2020 Interest income $ 202 $ 170 Accretion expense on decommissioning and restoration liability (710 ) (1,052 ) Interest expense (32,476 ) (34,015 ) Amortization of deferred financing costs (5,910 ) (3,426 ) Other finance costs* (1,479 ) (1,674 ) $ (40,373 ) $ (39,997 ) *Included in other finance costs for the year ended December 31, 2021 is $59 (2020 - $90) related to interest on lease liabilities. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of Shareholder's Equity [Abstract] | |
Shareholders' Equity | 12. SHAREHOLDERS’ EQUITY i. Authorized share capital Unlimited common shares, without par value. ii. Share capital The number of common shares issued and fully paid as at December 31, 2021 is 210,697,474 (2020 – 210,490,807). No dividends were declared and paid in the year s iii. Stock options, RSUs, DSUs and share-based payments reserve The Company has a long-term equity incentive plan (the “Plan”) which, among other things, allows for the maximum number of shares that may be reserved for issuance under the Plan to be 10% of the Company’s issued and outstanding shares at the time of the grant. The Board of Directors has the authority and discretion to grant stock options, restricted share units (“RSU”) and deferred share units (“DSU”) awards within the limits identified in the Plan, which includes provisions limiting the issuance of options to directors and employees of the Company to maximums identified in the Plan. As at December 31, 2021, the aggregate maximum number of shares pursuant to options granted under the Plan will not exceed 21,069,747 shares. All stock options are settled by the issuance of common shares. The following table summarizes information about the stock options outstanding and exercisable: Year ended December 31, 2021 Year ended December 31, 2020 Number of options Weighted average exercise price Number of options Weighted average exercise price Balance at beginning of the year 2,455,002 $ 2.89 3,518,335 $ 3.26 Granted during the year 3,085,000 0.63 - - Expired during the year (200,000) 6.66 (980,000 ) 4.29 Forfeited during the year (660,001) 2.08 (83,333 ) 2.17 Balance at end of the year 4,680,001 $ 1.36 2,455,002 $ 2.89 Options exercisable at the end of the year 1,531,667 $ 2.72 1,711,669 $ 3.51 The fair value of the stock options granted have been estimated on the date of grant using the Black-Scholes option pricing model. The assumptions are presented below for options granted during the year ended December 31, 2021. Expected volatility is calculated by reference to the weekly closing share price for a period that reflects the expected life of the options. A total of 3,085,000 stock options were issued during the year ended December 31, 2021 of which 1,085,000 stock options were issued on February 3, 2021 vesting 1/3 on February 3, 2022, 1/3 on February 3, 2023 and 1/3 on February 3, 2024 and 2,000,000 stock options were issued on November 15, 2021 vesting 1/3 on November 15, 2022, 1/3 on November 15, 2023 and 1/3 on November 15, 2024. December 31, 2021 Exercise price $0.62 - Expected volatility 59.38 % - 64.20 % Expected option life 5 years Contractual option life 5 years Expected forfeiture none Expected dividend yield 0% Risk-free interest rate 0.46% - 1.48% Weighted average fair value per share granted $0.32 The following tables reflect the number of stock options outstanding, the weighted average of stock options outstanding, and the exercise price of stock options outstanding at December 31, 2021. At December 31, 2021 Expiry Date Black-Scholes Value Number of Options Number of Exercisable Options Exercise Price February 5, 2022 171 100,000 100,000 5.86 December 21, 2022 644 605,000 605,000 3.48 June 30, 2023 203 200,000 200,000 3.30 December 27, 2024 372 930,000 626,667 1.30 February 2, 2026 268 845,001 - 0.65 November 15, 2026 675 2,000,000 - 0.62 $ 2,333 4,680,001 1,531,667 $ 1.36 Subsequent to the year ended December 31, 2021, 3,101,042 stock options were granted, with an exercise price of $0.714. The 2,439,668 stock options will vest 1/3 on January 17, 2023, 1/3 on January 17, 2024 and 1/3 on January 17, 2025, the 661,376 stock options will vest 1/3 on February 21, 2023, 1/3 February 21, 2024 and 1/3 February 21, 2025. The weighted average remaining contractual life of the options outstanding at December 31, 2021 is 3.60 years (2020—2.72 years). The restricted and deferred share unit plans are full value phantom shares that mirror the value of the Company’s publicly traded common shares. Grants under the RSU and DSU plan are made on a discretionary basis to directors and employees of the Company subject to the Board of Directors’ approval. Under the RSU and DSU plan, RSUs and DSUs vest according to the terms set out in the award agreement which are determined on the initial grant date on an individual basis at the discretion of the Board of Directors. Vesting under the RSU and DSU plan is subject to special rules for death, disability and change in control. The awards can be settled through issuance of common shares or paid in cash, at the discretion of the Board of Directors. These awards are accounted for as equity settled RSUs. The fair value of each RSU issued is determined at the closing share price on the grant date. The following table shows the RSU awards which have been granted and settled during the year: December 31, 2021 December 31, 2020 RSU Number of units Weighted average value grant date fair value Number of units Weighted average value Balance at beginning of year 863,333 $ 1.13 1,065,000 $ 1.31 Awards and payouts during the period (net): RSUs awarded 1,000,000 0.64 - - RSUs settled and common shares issued (206,667 ) 1.06 (98,334 ) 2.79 RSUs forfeited (229,999 ) 0.65 (103,333 ) 1.36 Balance at end of the year* 1,426,667 $ 0.87 863,333 $ 1.13 *As at December 31, 2021, 420,002 RSUs (2020 - 287,778 RSUs) have vested and have not yet been settled. Subsequent to the year ended December 31, 2021, 1,142,493 RSUs were granted with a fair value of $0.714 per unit. No DSU awards have been granted to date, therefore as at December 31, 2021 there are no DSUs outstanding. The share-based payments recognized as an expense for the years ended December 31, 2021 and 2020 are as follows: Year ended Year ended December 31, 2021 December 31, 2020 Expense recognized in the year for share-based payments $ 868 $ 983 The share-based payment expense for the years ended December 31, 2021 and 2020 is included in selling, general and administrative expenses. iv. Earnings (loss) per share The following table sets forth the computation of basic and diluted earnings (loss) per share: Year ended December 31, 2021 Year ended December 31, 2020 Numerator Net income (loss) for the year $ 276,167 $ (263,429 ) Effect of dilutive securities 534 - $ 276,701 $ (263,429 ) Denominator For basic - weighted average number of shares outstanding 210,526,871 210,406,658 Effect of dilutive securities 1,426,667 - For diluted - adjusted weighted average number of shares outstanding 211,953,538 210,406,658 Earnings (loss) Per Share Basic $ 1.31 $ (1.25 ) Diluted $ 1.31 $ (1.25 ) For the year ended December 31, 2021, 4,680,001 stock options were not included in the calculation of diluted earnings per share since to include them would be anti-dilutive (2020 - 2,455,002 stock options and 863,333 RSUs). |
Selling, General And Administra
Selling, General And Administrative Expenses | 12 Months Ended |
Dec. 31, 2021 | |
Selling, General And Administrative Expenses | |
Selling, General And Administrative Expenses | 13. SELLING, GENERAL AND ADMINISTRATIVE EXPENSES Year ended December 31, 2021 Year ended December 31, 2020 Selling and marketing $ 5,259 $ 5,259 General and administrative: Consulting fees and payroll 3,535 1,946 Share-based payment expense 868 983 Depreciation 211 218 Office and administration 998 878 Professional fees 1,994 2,588 Promotion and investor relations 77 428 Director fees 512 278 Transfer agent and regulatory fees 360 461 Travel 44 114 $ 13,858 $ 13,153 |
Derivatives Assets And Liabilit
Derivatives Assets And Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of Derivative Liabilities [Abstract] | |
Derivative Assets And Liabilities | 14. DERIVATIVES ASSETS AND LIABILITIES The notes indentures grant the Company the option to prepay the notes prior to the maturity of the instruments, and specifies a premium during each applicable time period. These prepayment options have been accounted for as embedded derivatives and are outlined below. The Company may redeem the secured notes in whole or in part at any time during the twelve-month period beginning on December 15, 2021 at a redemption price equal to 100% of the principal amount of the secured notes redeemed, plus accrued and unpaid interest to the date of redemption. During the year ended December 31, 2021, the Company entered into foreign currency put options to mitigate the risk that a devaluation of the U.S. dollar against the Canadian dollar would reduce the Canadian dollar equivalent of the U.S. dollar sales proceeds and the Company would not have sufficient Canadian dollar funds to contribute to the operations of the GK Mine. These derivatives have been classified as “non-hedge The Company has US$22 million foreign currency put option contracts outstanding at a strike price of 1.28 with settlement dates from February 2022 to December 2022. Subsequent to the year end, the Company entered into a further US$22 million foreign currency put option contract at a strike price of 1.25 with settlement dates from February 2022 to December 2022. The following table presents the various derivatives assets as at December 31, 2021 and 2020 December 31, 2021 December 31, 2020 Prepayment option embedded derivatives $ - $ 162 Currency derivative contract 731 - Current portion of embedded derivatives 44 23 Total $ 775 $ 185 The following table presents amounts recognized in the Consolidated Statement of Comprehensive Income (Loss) for the years ended December 31, 2021 and 2020: Year ended Year ended December 31, 2021 December 31, 2020 Gain on currency derivative contract $ 61 $ 158 Loss on prepayment option embedded derivative (128 ) (31 ) Total $ (67 ) $ 127 |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of detailed information about financial instruments [abstract] | |
Financial Instruments | 15. FINANCIAL INSTRUMENTS Fair value measurement The Company categorizes each of its fair value measurements in accordance with a fair value hierarchy. The fair value hierarchy establishes three levels to classify the inputs to valuation techniques used to measure fair value. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices in markets that are not active, quoted prices for similar assets or liabilities in active markets, inputs other than quoted prices that are observable for the asset or liability (for example, interest rate and yield curves observable at commonly quoted intervals, forward pricing curves used to value currency and commodity contracts and volatility measurements used to value option contracts), or inputs that are derived principally from or corroborated by observable market data or other means. Level 3 inputs are unobservable (supported by little or no market activity). The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. The fair values of the accounts receivable and accounts payable and accrued liabilities approximate their carrying values due to the relatively short-term maturity of these financial instruments. The following table shows the carrying amounts and fair values of the Company’s financial assets and financial liabilities, including their levels in the fair value hierarchy. Carrying amount Fair value December 31, 2021 Assets at amortized cost Fair value through profit and loss Liabilities at amortized cost Total Level 1 Level 2 Level 3 Total Financial assets measured at fair value Derivative assets $ - $ 775 $ - $ 775 $ - $ 775 $ - $ 775 $ - $ 775 $ - $ 775 Financial assets not measured at fair value Cash $ 25,000 $ - $ - $ 25,000 25,000 - - 25,000 Restricted cash 25,144 - - 25,144 25, 14 - - 25, 14 Amounts receivable 877 - - 877 877 - - 877 $ 51,021 $ - $ - $ 51,021 Finacial liabilities not measured at fair value Accounts payable and accrued liabilities $ - $ - $ 36,893 $ 36,893 36,893 - - 36,893 Secured notes payable - - 375,517 375,517 357,607 - - 357,607 $ - $ - $ 412,410 $ 412,410 Carrying amount Fair value December 31, 2020 Assets at Fair value through Liabilities at amortized cost Total Level 1 Level 2 Level 3 Total Financial assets measured at fair value Derivative assets $ - $ 185 $ - $ 185 $ - $ 185 $ - $ 185 $ - $ 185 $ - $ 185 Financial assets not measured at fair value Cash $ 35,152 $ - $ - $ 35,152 35,152 - - 35,152 Restricted cash 15,019 - - 15,019 15,019 - - 15,019 Amounts receivable 797 - - 797 797 - - 797 $ 50,968 $ - $ - $ 50,968 Financial liabilities not measured at fair value Accounts payable and accrued liabilities $ - $ - $ 41,010 $ 41,010 41,010 - - 41,010 Dunebridge revolving credit facility - - 31,813 31,813 - 31,813 - 31,813 Secured notes payable - - 374,706 374,706 329,632 - - 329,632 $ - $ - $ 447,529 $ 447,529 Fair values of assets and liabilities classified as Level 2 are valued using discounted cash flow (“DCF”) models. These models require a variety of observable inputs including market prices, forward price curves, yield curves and credit spreads. Derivative assets are carried at fair value which is determined based on internal valuation model that reflect the observable currency exchange rates in the markets. These inputs are obtained from or verified with the market where possible. The financial assets relate to the embedded derivative assets, which are prepayment options on the secured notes payable (Note 9) and foreign currency put option contracts (Note 14). The financial liabilities relate to the Dunebridge RCF. The fair value of the secured notes payable is determined using market quoted prices. Financial instruments risks The Company examines the various financial instrument risks to which it is exposed and assesses the impact and likelihood of those risks. These risks include credit risk, liquidity risk, market risk, foreign currency risk and interest rate risk. Credit risk Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its obligations. The Company’s exposure to credit risk is for its amounts receivable of which all of the outstanding amounts of $877 and $797 as at December 31, 2021 and 2020, respectively, were collected. On December 31, 2021 and 2020, the Company does not have any allowance for doubtful accounts, and does not consider that any such allowance is necessary. All of the Company’s cash and restricted cash is held with a major Canadian financial institution and thus the exposure to credit risk is considered insignificant. Management actively monitors the Company’s exposure to credit risk under its financial instruments, including with respect to amounts receivable. The Company considers the risk of loss for its amounts receivable to be remote and significantly mitigated due to the financial strength of the parties from whom most of the amounts receivable are due - the Canadian government for harmonized sales tax (“HST”) refunds receivable in the amount of approximately $722 (2020 - $604). The Company’s current policy is to hold excess cash in bank accounts. Liquidity risk Liquidity risk is the risk that the Company will not be able to meet its obligations associated with financial liabilities. The Company’s approach to managing liquidity risk is to monitor forecast cash flows so that it will have sufficient liquidity to meet liabilities when due. The Company has a planning and budgeting process in place by which it anticipates and determines the funds required to support its ongoing requirements. The Company coordinates this planning and budgeting process with its financing activities through its capital management process. To achieve this, the Company relies on regular sales throughout the year, generally nine or ten tender sales, in addition to occasional sales of fancies and special diamonds to De Beers, in order to fund ongoing operations. Being able to maintain positive cash flows from operations and/or maintain sufficient liquidity, is dependent upon many factors including, but not limited to, diamond prices, exchange rates, operating costs and levels of production. Adverse changes in one or more of these factors negatively impact the Company’s ability to comply with the covenants and/or maintain sufficient liquidity, all of which are subject to the effects of the ongoing COVID-19 pandemic. As at December 31, 2021, the Company has a current e Subsequent to the year ended December 31, 2021, the Company executed a credit facility with Dunebridge, for US$50 million (Note 20). The following table summarizes the contractual maturities of the Company’s significant financial liabilities and capital commitments, including contractual obligations: Less than 1 to 3 4 to 5 After 5 1 Year Years Years Years Total Gahcho Kué Diamond Mine commitments $ 4,391 $ - $ - $ - $ 4,391 Gahcho Kué Diamond Mine decommissioning fund 10,000 20,000 - - 30,000 Notes payable - Principal 379,034 - - - 379,034 Notes payable - Interest 30,323 - - - 30,323 $ 423,748 $ 20,000 $ - $ - $ 443,748 Market risk Market risk is the risk that changes in market prices such as foreign exchange rates, interest rates and equity prices will affect the Company’s income and the value of its financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters while optimizing returns. (i) Interest rate risk The Company does not have significant exposure to interest rate risk at December 31, 2021 and 2020, since the secured notes payable and Dunebridge RCF do not have variable interest rates. At December 31, 2021, the total secured notes payable was US$299.9 million (2020 – US$299.9 million) and the Dunebridge RCF was Nil (2020 - US$25 million). (ii) Foreign currency The Company is exposed to market risk related to foreign exchange rates. The Company operates in Canada and has foreign currency exposure to transactions in U.S. dollars. The majority of the ongoing operational costs of the GK Mine are in Canadian dollars, and are funded through operating cash flows. The Company’s operating cash flows include the sale, in U.S. dollars, of its 49% share of the GK Mine diamonds produced. As at December 31, 2021 and 2020, the Company had cash, derivative assets, accounts payable and accrued liabilities, the Dunebridge revolving credit facility and the secured notes payable that are in U.S. dollars. The Canadian dollar equivalent is as follows: December 31, December 31, 2021 2020 Cash $ 11,968 $ 33,703 Derivative assets 731 - Accounts payable and accrued liabilities (1,949 ) (2,538 ) Dunebridge revolving credit facility - (31,813 ) Secured notes payable (379,034 ) (381,674 ) Total $ (368,284 ) $ (382,322 ) A 10% appreciation or depreciation of the Canadian dollar relative to the U.S. dollar at December 31, 2021 and 2020 would have resulted in an increase or decrease to net income for the year of approximately $36.8 million and $38.2 million, respectively. |
Related Parties
Related Parties | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Related Party [Abstract] | |
Related Parties | 16. RELATED PARTIES The Company’s related parties include the Operator of the GK Mine, Dermot Desmond, Dunebridge and Vertigol Unlimited Company (“Vertigol”) (corporations ultimately beneficially owned by Dermot Desmond), key management and their close family members, and the Company’s directors. Dermot Desmond, indirectly through Vertigol, is the ultimate beneficial owner of greater than 10% of the Company’s shares. International Investment and Underwriting (“IIU”) is also a related party since it is ultimately beneficially owned by Dermot Desmond. Related party transactions are recorded at their exchange amount, being the amount agreed to by the parties. The Company had the following transactions and balances with its related parties including key management personnel including the Company’s directors, Dermot Desmond, Dunebridge, Vertigol, IIU and the Operator of the GK Mine. The transactions with key management personnel are in the nature of remuneration. The transactions with the Operator of the GK Mine relate to the funding of the Company’s interest in the GK Mine for the current year’s expenditures, capital additions, management fee, and production sales related to the 49% share of fancies and special diamonds. The transactions with IIU are for the director fees of the Chairman of the Company. In the second quarter of 2020, the Company entered into an agreement to sell up to US$50 million of diamonds to Dunebridge. The agreement permits the Company to sell its run of mine diamonds (below 10.8 carats) at the estimated prevailing market price at the time of each sale. The transaction also allows the Company to participate, after fees and expenses in a portion of any increase in the value of diamonds realized by Dunebridge upon its future sale of diamonds to a third party. Dunebridge is entitled to receive 10% annualized returns in respect to these future sales of Dunebridge diamonds, calculated with reference to each specific Dunebridge sales parcel. These fees are fixed at 10% of the amount of the future sales for the first year. pro-rated On September 29, 2020, the shareholders approved to have this agreement amended to increase the total sales value from US$50 million of diamonds to US$100 million. Effective November 6, 2020, the new agreement with the incremental increase to US$100 million was executed. During the year ended December 31, 2020, approximately US$49.4 million of run of mine diamonds have been sold to Dunebridge under the agreement. re-sold On September 30, 2020, the Company entered into the Dunebridge RCF for US$25 million to reassign the previous RCF, with first ranking lien terms. The Dunebridge RCF carries an interest rate of 5% per annum, and was On September 24, 2021, the Dunebridge RCF was extended to March 31, 2022 and an upfront 2% extension fee of US$500 was paid. The extension of the Dunebridge RCF was subject to the Term Facility (below) being repaid in full and terminated. The Dunebridge RCF continues to carry an interest rate of 5% per annum. On September 29, 2021, the Company made a partial repayment of US$5 million, and in the fourth quarter of 2021, the Company fully repaid the Dunebridge RCF for the remainder US$20 million. Subsequent to the year ended December 31, 2021, the Company drew US$5M from the Dunebridge RCF for funding operations. On March 2 8 On million million Dunebridge million was million ahead of the reduction of size requirement to US$ million on July 15, 2021. The Company also repaid a cash sweep amount of US$ million in June 2021, and US$8.5 million in July 2021. On September 23, 2021, the Company had fully repaid the Term Facility, and in accordance with the Dunebridge RCF extension described above, was terminated. Between 2014 and 2020, the Company and De Beers signed agreements allowing De Beers (“the Operator”) to utilize De Beers’ credit facilities to issue reclamation and restoration security deposits to the federal and territorial governments. In accordance with these agreements, the Company agreed to a 3% fee annually for their share of the letters of credit issued. As at December 31, 2021, the Company’s share of the letters of credit issued were $44.1 million (2020 - $44.1 million). During the year ended December 31, 2020, the Company and De Beers signed an agreement to reduce the fee from 3% to 0.3%, annually, for their share of the letters of credit issued. Furthermore, a resolution was passed by the joint venture management committee to establish a decommissioning fund, where the Company will fund $15 million in 2020, and $10 million each year for four years thereafter until the Company’s 49% share totaling $55 million is fully funded. The target funding can change over time, dependent on future changes to the decommissioning and restoration liability and returns on decommissioning fund investments. During the year ended December 31, 2021, the Company funded $10 million (2020 - $15 million) into the decommissioning fund, which is presented as restricted cash on the balance sheet. Failure to meet the obligations for cash calls to fund the Company’s share in the GK Mine may lead to De Beers enforcing its remedies under the JV Agreement, which could result in, amongst other things the dilution of Mountain Province’s interest in the GK Mine, and at certain dilution levels trigger cross-default clauses within the Senior Notes. The balances as at December 31, 2021 and 2020 were as follows: December 31, December 31, 2021 2020 Payable De Beers Canada Inc. as the operator of the GK Mine* $ 2,732 $ 2,789 Payable to De Beers Canada Inc. for interest on letters of credit 99 550 Revolving credit facility with Dunebridge Worldwide Ltd.** - 31,813 Payable to key management personnel 67 158 *included in accounts payable and accrued liabilities **does not include $318 of unamortized deferred transaction costs and issuance discount The transactions for the years ended December 31, 2021 and 2020 were as follows: Year ended Year ended December 31, 2021 December 31, 2020 The total of the transactions: International Investment and Underwriting $ 120 $ 23 Remuneration to key management personnel 3,329 1,875 Upside revenue on diamonds sold to Dunebridge Worldwide Ltd. 10,399 - Diamonds sold to Dunebridge Worldwide Ltd. - 66,671 Diamonds sold to De Beers Canada Inc. 10,338 12,610 Diamonds purchased from De Beers Canada Inc. 14,990 11,523 Finance costs incurred from De Beers Canada Inc. 135 198 Finance costs incurred from Dunebridge Worldwide Ltd. 5,882 852 Assets purchased from De Beers Canada Inc. - 42 Management fee charged by the Operator of the GK Mine 4,763 4,368 The remuneration expense of directors and other members of key management personnel for the years ended December 31, 2021 and 2020 were as follows: Year ended Year ended December 31, 2021 December 31, 2020 Consulting fees, payroll, director fees, bonus and other short-term benefits $ 2,982 $ 1,357 Share-based payments 467 541 $ 3,449 $ 1,898 Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Company directly or indirectly, including any directors (executive and non-executive) |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Income Tax [Abstract] | |
Income Taxes | 17. INCOME TAXES Rate Reconciliation The provision for income tax differs from the amount that would have resulted by applying the combined Canadian statutory income tax rates of approximately 26.5% (2020 - 26.5%): December 31, 2021 December 31, 2020 Income (loss) before income taxes $ 296,887 $ (263,429) 26.5% 26.5% Tax 78,676 (69,809 ) Expenses 926 (1,185 ) Change (79,602 ) 70,994 Deferred 20,720 - Deferred $ 20,720 $ - Components of deferred tax assets and liabilities December 31, 2021 December 31, 2020 Deferred tax liabilities Inventory $ (183) $ (449) Property, plant & equipment (82,773) (30) Derivative assets and debt (874) (519) Total deferred tax liabilities (83,830) (998) Deferred tax asset-tax losses 63,110 998 Net deferred taxes $ (20,720) $ - Unrecognized deferred tax assets Deductible temporary differences for which deferred tax assets have not been recognized are attributable to the following: December 31, 2021 December 31, 2020 Property, plant and equipment $ - $ 104,795 Decommissioning and restoration liability 94,839 71,923 Income tax benefit of deferred 20,720 - Capital losses 942 426 Non-capital losses, expiring 2034 to 2041 132,659 351,218 Share issuance cost 50 178 $ 249,210 $ 528,540 The Company also has unrecognized deductible temporary differences of $90.4 million (2020 - $277.8 million) related to the Northwest Territories Mining Royalty. |
Capital Management
Capital Management | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of objectives, policies and processes for managing capital [abstract] | |
Capital Management | 18. CAPITAL MANAGEMENT The Company considers its capital structure to consist of debt, share capital, share-based payments reserve, and net of deficit. The Company manages its capital structure and makes adjustments to it, in order to have the funds available to support the acquisition, exploration and development of mineral properties and ongoing operations (Note 1). The Board of Directors does not establish quantitative return on capital criteria for management, but rather relies on the expertise of the Company’s management to sustain future development of the business. The declaration and payment of dividends on the Company’s common shares and the amount thereof are at the discretion of the Board of Directors, which takes into account the Company’s financial results, capital requirements, available cash flow, future prospects of the Company’s business and other factors considered relevant from time to time , as well as the Dunebridge RCF terms (Note 10). Management reviews its capital management approach on an ongoing basis. The Company’s capital is summarized as follows: December 31, December 31, 2021 2020 Secured notes payable $ 375,517 $ 374,706 Dunebridge revolving credit facility - 31,813 Share capital 631,717 631,498 Share-based payments reserve 7,469 6,820 Deficit (289,785) (565,952 ) $ 724,918 $ 478,885 |
Segmented Reporting
Segmented Reporting | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of Segmented Reporting [Abstract] | |
Segmented Reporting | 19. SEGMENTED REPORTING The reportable operating segments are those operations for which operating results are reviewed by the CEO who is the chief operating decision maker regarding decisions about resources to be allocated to the segment and to assess performance provided those operations pass certain quantitative thresholds. Operations with revenues, earnings or losses or assets that exceed 10% of total consolidated revenue, earnings or losses or assets are reportable segments. As a result of the asset acquisition of Kennady, which included all mineral rights of the KNP, the Company now owns multiple diamond projects in the Northwest Territories, Canada. The GK Mine is a diamond mine in operations, while the KNP resource continues to be developed through exploration and evaluation programs. As at and for the year ended December 31, 2021 GK Mine KNP Total Sales $ 308,723 $ - $ 308,723 Cost of sales: Production costs 140,099 - 140,099 Cost of acquired diamonds 15,723 - 15,723 Depreciation and depletion 39,173 - 39,173 Earnings from mine operations 113,728 - 113,728 Impairment reversal on property, plant and equipment (240,593 ) - (240,593 ) Exploration and evaluation expenses 604 4,943 5,547 Selling, general and administrative expenses 13,816 42 13,858 Operating income (loss) 339,901 (4,985 ) 334,916 Net finance expenses (40,367 ) (6 ) (40,373 ) Other income - 143 143 Derivative losses (67 ) - (67 ) Foreign exchange gains 2,268 - 2,268 Net $ 301,735 $ (4,848 ) $ 296,887 Total assets $ 705,465 $ 172,032 $ 877,497 Total $ 523,397 $ 3,365 $ 526,762 As at and for the year ended December 31, 2020 GK Mine KNP Total Sales $ 226,993 $- $ 226,993 Cost of sales: Production costs 153,679 - 153,679 Cost of acquired diamonds 11,088 - 11,088 Depreciation and depletion 63,711 - 63,711 Loss from mine operations (1,485) - (1,485) Impairment loss on property, plant and equipment 217,366 - 217,366 Exploration and evaluation expenses 1,076 2,731 3,807 Selling, general and administrative expenses 13,110 43 13,153 Operating loss (233,037) (2,774) (235,811) Net finance expenses (39,920) (77) (39,997) Derivative gains 127 - 127 Foreign exchange gains 12,252 - 12,252 Net loss before taxes $ (260,578) $ (2,851) $ (263,429) Total assets $ 424,272 $ 171,057 $ 595,329 Total liabilities $ 519,074 $ 2,555 $521,629 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of non-adjusting events after reporting period [abstract] | |
Subsequent Events | 20. SUBSEQUENT EVENTS Subsequent to the year ended December 31, 2021, the Company completed the US$50M credit facility with Dunebridge Worldwide Ltd. bearing an interest rate of 8% per annum, paid semi-annually until December 2022. Following this date, the interest rate would be 2% above the margin on the second lien notes then outstanding. The maturity date of this credit facility is December 15, 2027. As a part of the new financing package, 41 million share warrants were issued at an exercise price of US$0.60975 per common share for an aggregate exercise price of approximately US$25,000 and expire on December 15, 2027. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Significant Accounting Policies [Abstract] | |
Foreign currency | (i) Foreign currency The functional currency of the Company and its subsidiaries is the Canadian Dollar. In preparing the consolidated financial statements, transactions in currencies other than the Company’s functional currency are recognized at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are re-translated Non-monetary Exchange differences are recognized in profit or loss in the period in which they arise and presented in the consolidated statements of comprehensive income (loss). |
Share-based payments | (ii) Share-based payments The Company maintains a Restricted Share Unit (“RSU”), Deferred Share Unit (“DSU”) and stock option plan for employees, directors, and other qualified individuals. Equity-settled transactions, which include RSUs, DSUs and stock options, are measured by reference to their fair value at the grant date. The fair values for RSU’s and DSU’s are determined using the market value of the share, as listed on the TSX, at the close of business at the grant date. The fair value for stock options is determined using a Black-Scholes option pricing model, which relies on estimates of the future risk-free interest rate, future dividend payments, future share price volatility and the expected average life of options. The Company believes this model adequately captures the substantive features of the option awards, and is appropriate to calculate their fair values. Equity-settled share-based payments to employees and others providing similar services are measured at the fair value of the equity instruments at the grant date. The fair value determined at the grant date of the equity-settled share-based payments is expensed in profit or loss over the vesting period, if any, which is the period during which the employee becomes unconditionally entitled to equity instruments, with a corresponding increase to share-based payments reserve. At the end of each reporting period, the Company revises its estimate of the number of equity instruments expected to vest, if any. |
Income taxes and deferred taxes | (iii) Income taxes and deferred taxes The income tax expense or benefit for the year consists of two components: current and deferred. Current tax is the expected tax payable or receivable on the taxable profit or loss for the year. Current tax is calculated using tax rates and laws that were enacted or substantively enacted at the balance sheet date in each of the jurisdictions and 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 Comprehensive Income (Loss) Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences, loss carryforwards and tax credit carryforwards 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 carryforwards, and tax credit carryforwards can be utilized, a deferred tax asset is not recognized. Deferred tax assets and liabilities are not recognized if the temporary difference arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries, except where the Company is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments are only recognized to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off deferred tax assets against deferred tax liabilities and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its deferred tax assets and liabilities on a net basis. Current and deferred taxes are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred taxes are also recognized in other comprehensive income or directly in equity, respectively. |
Mineral properties and exploration and evaluation costs and development costs | (iv) Mineral properties and exploration and evaluation costs and development costs Exploration and evaluation (“E&E”) costs are those costs required to find a mineral property and determine commercial viability and technical feasibility. E&E costs include costs to establish an initial mineral resource and determine whether inferred mineral resources can be upgraded to measured and indicated mineral resources and whether measured and indicated mineral resources can be converted to proven and probable reserves. Exploration and evaluation costs consist of: ● gathering exploration data through topographical and geological studies; ● exploratory drilling, trenching and sampling; ● determining the volume and grade of the resource; ● test work on geology, metallurgy, mining, geotechnical and environmental; and ● conducting and refining engineering, marketing and financial studies. Costs in relation to these activities are expensed as incurred until such time that the technical feasibility and commercial viability of extracting the mineral resource are demonstrable. At such time, mineral properties are assessed for impairment, and an impairment loss, if any, is recognized, and future development costs will be capitalized to assets under construction. The key factors management use s are ● completion of a feasibility study; ● obtaining required permits to construct the mine; ● completion of an evaluation of the financial resources required to construct the mine; ● availability of financial resources necessary to commence development activities to construct the mine; and ● management’s determination that a satisfactory return on investment, in relation to the risks to be assumed, is likely to be obtained. The Company also recognizes exploration and evaluation costs as assets when acquired as part of a business combination, or asset purchase, or as a result of rights acquired relating to a mineral property. |
Impairment of non-financial assets | (v) Impairment of non-financial The carrying value of the Company’s capitalized property, plant and equipment, and exploration and evaluation assets are assessed for impairment when indicators of potential impairment are identified to exist. If any indication of impairment is identified, an estimate of the asset’s recoverable amount is calculated to determine the extent of the impairment loss, if any. The recoverable amount is determined as the higher of the fair value less costs of disposal for the asset and the asset’s value in use. In assessing the fair value, the estimated future cash flows are discounted to their present value using a discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. Impairment is determined on an asset by asset basis, whenever possible. If it is not possible to determine impairment on an individual asset basis, then impairment is considered on the basis of a cash generating unit (“CGU”). CGUs represent the lowest level for which there are separately identifiable cash inflows that are largely independent of the cash flows from other assets or the Company’s other group of assets. The Company has determined that it has two CGUs. If the carrying amount of the asset exceeds its recoverable amount, the asset is impaired and an impairment loss is charged immediately to profit or loss so as to reduce the carrying amount to its recoverable amount. For property, plant and equipment, a previously recognized impairment loss is reversed if there has been a change in the estimates previously used to determine the asset’s recoverable amount since the last impairment loss was recognized. The impairment reversal is limited to the carrying value that would have been determined, net of any applicable depreciation, had no impairment charge been recognized previously. |
Capitalized interest | (vi) Capitalized interest Interest costs for qualifying assets are capitalized. Qualifying assets are assets that require a significant amount of time to prepare for their intended use, including projects that are in development or construction stages. Capitalized interest costs are considered an element of the cost of the qualifying asset. Capitalization ceases when the asset is substantially complete or if active development is suspended or ceases. Where funds borrowed are directly attributable to a qualifying asset, the amount capitalized represents the borrowing costs specific to those borrowings. Interest costs are not capitalized for exploration and evaluation assets. |
Provisions | (vii) Provisions Provisions represent liabilities to the Company for which the amount or timing is uncertain. Provisions are recognized when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation, and the amount can be reliably estimated. Provisions are not recognized for future operating losses. Provisions are measured at the present value of the expected expenditures to settle the obligation, applying a pre-tax The Company records as decommissioning and restoration liability the present value of estimated costs of legal and constructive obligations required to restore locations in the period in which the obligation is incurred. The nature of these decommissioning and restoration activities includes dismantling and removing structures, rehabilitating mines and tailings dams, dismantling operating facilities, closure of plant and waste sites, and restoration, reclamation and re-vegetation The obligation generally arises when the asset is installed or the ground and/or environment is disturbed at the production location. When the liability is initially recognized, the present value of the estimated cost is capitalized if the Company has a related asset on its balance sheet, or expensed. Costs for restoration of subsequent site damage which is created on an ongoing basis during production are provided for at their net present values and is added to inventory, and then in production costs as inventory is sold. Over time, the discounted liability is adjusted for the change in present value. The periodic unwinding of the discount is recognized in profit or loss as a finance cost called “accretion expense on decommissioning and restoration liability”. Additional disturbances or changes in rehabilitation costs will be recognized as additional capitalized costs (or exploration and evaluation expense depending on whether there was a related asset when the liability was initially recognized) and additional decommissioning and restoration liability when they occur. If it is determined that the expected costs for decommissioning and restoration are reduced, the change in the present value of the reduction is recorded as a reduction in the capitalized costs (expensed), and a reduction of the decommissioning and restoration liability. |
Earnings or loss per share | (viii) Earnings or loss per share Basic loss or earnings per share is calculated by dividing loss or earnings attributable to common shares by the weighted average number of shares outstanding during the year. The Company follows the treasury stock method in the calculation of diluted earnings per share. The treasury stock method assumes that outstanding stock options with an average exercise price below the market price of the underlying shares are exercised and the assumed proceeds are used to repurchase common shares of the Company at the average market price of the common shares for the period. |
Revenue recognition | (ix) Revenue recognition The Company utilizes a sales agent to facilitate the sale of rough and/or fancies and specials diamonds to the end-customer. As outlined in the joint venture agreement between the Company and De Beers Canada, fancies and specials diamonds produced at the GK mine are subject to a bid process. When De Beers is the successful bidder, the Company recognizes 49% of the bid price as revenue at the completion of the bid process, as De Beers receives the fancies and specials diamonds and the Company is paid immediately for its share by De Beers. For sales subject to the Dunebridge Sales Agreement (Note 16), the Company recognizes revenue when consideration has been received by the Company, which represents the completion of the performance obligations of the Company and when control is passed to Dunebridge. Any upside variable consideration is recognized on a net basis, when it can be estimated reliably, is not constrained by external |
Property, plant and equipment | (x) Property, plant and equipment Property, plant and equipment are stated at cost less accumulated amortization and accumulated impairment losses. Cost comprises the fair value of consideration given to acquire an asset and includes the direct charges associated with bringing the asset to the location and condition necessary to put the asset into use, as well as the future cost of dismantling and removing the asset. When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment. Replacement cost, including major inspection and overhaul expenditures are capitalized for components of property, plant and equipment, which are accounted for separately. Development costs are capitalized under assets under construction. Expenditures, including engineering to design the size and scope of the project, environmental assessment and permitting and borrowing costs are capitalized to assets under construction. Amortization is provided on property, plant and equipment. Amortization is calculated so as to allocate the cost of each asset over its expected useful life to its estimated residual value. The estimated useful lives, residual values and amortization method are reviewed at the end of each annual reporting period. Mineral properties are not amortized until the properties to which they relate are placed into commercial production, at which time the costs will be amortized on a unit-of-production Upon entering commercial production stage, capitalized costs associated with the acquisition of the mineral property or the development of the mine, are amortized using the various methods based in the asset categories as follows: Corporate assets two to seven years, straight line Vehicles three to five years, straight line Production and related equipment units of production over proven and probable reserves General infrastructure units of production over proven and probable reserves Earthmoving equipment straight line over shorter of life of mine or life of the asset Mineral properties units of production over proven and probable reserves Assets under construction not depreciated until ready for use |
Inventories | (xi) Inventories Inventories are recorded at the lower of cost and net realizable values. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion. An impairment adjustment is made when the carrying amount is higher than the net realizable value. Rough diamonds classified as finished goods comprise diamonds that have been subject to the sorting process. Cost is determined on a weighted average cost per carat basis including production costs and value-added processing activity. As outlined in the joint venture agreement between the Company and De Beers Canada, fancies and special diamonds produced at the GK Mine are subject to a bid process. Upon a successful bid by the Company, the fancies and specials diamonds will be included in inventories and 51% of the bid amount will be paid to De Beers and capitalized to the cost of inventory. Cost for fancies and specials diamonds is determined on a weighted average cost basis including production costs and value-added processing activity plus the direct cost of acquiring the fancies and specials diamonds from De Beers. Stockpiled ore represents coarse ore that has been extracted from the mine and is available for future processing. Stockpiled ore value is based on costs incurred in bringing ore to the stockpile. Costs are added to the stockpiled ore based on current mining costs per tonne and are removed at the average cost per tonne of ore in the stockpile. Supplies inventory are consumable materials which are measured at the lower of weighted average cost and net realizable value. |
Capitalized stripping costs | (xii) Capitalized stripping costs In open pit mining operations, it is necessary to remove overburden and other waste materials to access ore from which minerals can be extracted economically. The process of removing overburden and waste materials is referred to as stripping. Stripping costs incurred in order to provide initial access to the ore body (referred to as pre-production It may be also required to remove waste materials and to incur stripping costs during the production phase of the mine. The Company recognizes a stripping activity asset if all of the below conditions are met: ● It is probable that the future economic benefit (improved access to the component of the ore body) associated with the stripping activity will flow to the Company. ● The Company can identify the component of the ore body for which access has been improved. ● The costs relating to the stripping activity associated with that component can be measured reliably. The Company measures the stripping activity at cost based on an accumulation of costs incurred to perform the stripping activity that improves access to the identified component of ore, plus an allocation of directly attributable costs. The waste to ore strip ratio projected for the life of the specific orebody must be exceeded for the costs to be capitalized as stripping costs. After initial recognition, the stripping activity asset is carried at cost less depreciation and impairment losses in the same way as the existing asset of which it is a part. The stripping activity asset is depreciated over the expected useful life of the identified components of the ore body that becomes more accessible as a result of the stripping activity using the units of production method. |
Financial Instruments | (xiii) Financial Instruments Classification The Company classifies its financial instruments in the following categories: at fair value through profit and loss (“FVTPL”), at fair value through other comprehensive income (“FVTOCI”) or at amortized cost. The Company determines the classification of financial assets at initial recognition. The classification of debt instruments is driven by the Company’s business model for managing the financial assets and their contractual cash flow characteristics. Financial liabilities are measured at amortized cost unless they are required to be measured at FVTPL (such as instruments held for trading or derivatives) or the Company has opted to measure them at FVTPL. Asset/Liability Classification Cash Amortized cost Equity securities FVTOCI Amounts receivable Amortized cost Derivative assets FVTPL Accounts payable and accrued liabilities Amortized cost Dunebridge revolving credit facility Amortized cost Dunebridge term facility Amortized cost Secured notes payable Amortized cost Measurement Financial assets at FVTOCI Elected investments in equity instruments at FVTOCI are initially recognized at fair value plus transaction costs. Subsequently they are measured at fair value, with gains and losses arising from changes in fair value recognized in other comprehensive income. Financial assets and liabilities at amortized cost Financial assets and liabilities at amortized cost are initially recognized at fair value, plus transaction costs, and subsequently carried at amortized cost less any impairment. Financial liabilities carried at amortized cost utilize the effective interest method. The effective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or where appropriate, a shorter period, to the net carrying amount on initial recognition. Financial assets and liabilities at FVTPL Financial assets and liabilities carried at FVTPL are initially recorded at fair value and transaction costs are expensed in the consolidated statements of comprehensive income (loss). Realized and unrealized gains and losses arising from changes in the fair value of the financial assets and liabilities held at FVTPL are included in the consolidated statements of comprehensive income (loss) in the period in which they arise. Derivative asset (liabilities) related to foreign currency contracts, which become realized, are reclassified from derivative gains and losses into realized foreign exchange gains and losses. Financial assets The Company derecognizes financial assets only when the contractual rights to cash flows from the financial assets expire, or when it transfers the financial assets and substantially all the associated risks and rewards of ownership to another entity. Gains and losses on derecognition are generally recognized in the consolidated statements of comprehensive income (loss). However, gains and losses on derecognition of financial assets classified as FVTOCI are reclassified to retained earnings (deficit) as a reclassification within equity. Financial liabilities The Company derecognizes financial liabilities only when its obligations under the financial liabilities are discharged, cancelled, or expired. The difference between the carrying amount of the financial liability derecognized and the consideration paid and payable, including any non-cash |
Leases | (xiv) Leases At inception of a contract, the Company assesses whether a contract is, or contains, a lease based on whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Company does not recognize right-of-use low-value The Company recognizes a right-of-use right-of-use right-of-use right-of-use The lease liabilities are initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease, or if the rate cannot be readily determined, the Company’s incremental borrowing rate. The lease liabilities are subsequently measured at amortized cost using the effective interest rate method. Each lease payment is allocated between the lease liability and finance cost. The finance cost is charged to net income over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. |
Government grants and assistance | (xv) Government grants and assistance Government grants and assistance related to expenses are presented as part of comprehensive income (loss), as a deduction to the related expense in the reporting period. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Significant Accounting Policies [Abstract] | |
Disclosure of detailed information about property, plant and equipment useful life | Upon entering commercial production stage, capitalized costs associated with the acquisition of the mineral property or the development of the mine, are amortized using the various methods based in the asset categories as follows: Corporate assets two to seven years, straight line Vehicles three to five years, straight line Production and related equipment units of production over proven and probable reserves General infrastructure units of production over proven and probable reserves Earthmoving equipment straight line over shorter of life of mine or life of the asset Mineral properties units of production over proven and probable reserves Assets under construction not depreciated until ready for use |
Amounts Receivable (Tables)
Amounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Amounts Receivable [Abstract] | |
Amounts Receivable | December 31, 2021 December 31, 2020 GST/HST receivable $ 722 $ 604 Other receivable 155 193 Total $ 877 $ 797 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Inventories Explanatory [Abstract] | |
Inventories | December 31, 2021 December 31, 2020 Ore stockpile $ 26,411 $ 9,203 Rough diamonds 44,255 48,036 Supplies inventory 39,166 33,267 Total $ 109,832 $ 90,506 |
Property, Plant And Equipment (
Property, Plant And Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Property, Plant and Equipment | The Company’s property, plant and equipm e Property, plant and equipment GK Assets under construction GK Property, plant and equipment KNP Exploration and evaluation assets KNP Assets under construction KNP Total Cost At January 1, 2020 $ 856,334 $ 730 $ 90 $ 168,866 $ 1,564 $ 1,027,584 Decommissioning and restoration 9,777 - - 278 - 10,055 Additions/transfers* 36,334 5,776 - - - 42,110 At December 31, 2020 902,445 6,506 90 169,144 1,564 1,079,749 Decommissioning and restoration 12,228 - - 248 - 12,476 Additions/transfers* 45,115 3,679 122 - - 48,916 Disposals - - (90 ) - - (90 ) At December 31, 2021 $ 959,788 $ 10,185 $ 122 $ 169,392 1,564 $ 1,141,051 Accumulated depreciation At January 1, 2020 $ (355,293 ) $ - $ (23 ) $ - $ - $ (355,316 ) Depreciation and depletion** (55,643 ) - (13 ) - - (55,656 ) Impairment loss (217,366 ) - - - - (217,366 ) At December 31, 2020 (628,302 ) - (36 ) - - (628,338 ) Depreciation and depletion** (38,862 ) - (6 ) - - (38,868 ) Disposals - - 42 - - 42 Impairment reversal*** 240,593 - - - - 240,593 At December 31, 2021 $ (426,571 ) $ - $ - $ - $ - $ (426,571 ) Carrying amounts At December 31, 2020 $ 274,143 $ 6,506 $ 54 $ 169,144 $ 1,564 $ 451,411 At December 31, 2021 $ 533,217 $ 10,185 $ 122 $ 169,392 1,564 $ 714,480 *Included in additions of property, plant and equipment for GK is $34,319 (2020 - $28,939) related to deferred stripping of which $1,431 relates to the depreciation of earthmoving equipment (2020 - $1,781). **Included in depreciation and depletion is $134 of depreciation on the right-of-use ***As at December 31, 2021, an impairment reversal of property, plant and equipment was recorded at GK mine. |
Decommissioning And Restorati_2
Decommissioning And Restoration Liability (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Decommissioning And Restoration Liability [Abstract] | |
Disclosure of detailed information about decommissioning and restoration liability assumptions | The GK Mine decommissioning and restoration liability was calculated using the following assumptions as at December 31, 2021 and 2020: December 31, 2021 December 31, 2020 Expected undiscounted cash flows $ 84,128 $ 61,558 Discount rate 1.42% 0.67% Inflation rate 2.00% 2.00% Periods 2030 2030 The Kennady North Project decommissioning and restoration liability was calculated using the following assumptions as at December 31, 2021 and 2020: December 31, 2021 December 31, 2020 Expected undiscounted cash flows $ 2,467 $ 2,268 Discount rate 0.25% 0.25% Inflation rate 2.00% 2.00% Periods 2024 2024 |
Disclosure of detailed information about decommissioning and restoration liability activity | The continuity of the decommissioning and restoration liability at December 31, 2021 and 2020 is as follows: GK Mine KNP Total Balance, at January 1, 2020 $ 56,429 $ 2,087 $ 58,516 Change in estimate of discounted cash flows 13,086 278 13,364 Accretion recorded during the year 976 76 1,052 Balance, at December 31, 2020 $ 70,491 $ 2,441 $ 72,932 Less: current portion of decommissioning and restoration liability 2,489 - 2,489 Non-current decommissioning and restoration liability, at December 31, 2020 $ 68,002 $ 2,441 $ 70,443 Change in estimate of discounted cash flows 19,223 248 19,471 Accretion recorded during the year 704 6 710 Balance, at December 31, 2021 $ 90,418 $ 2,695 $ 93,113 Less: current portion of decommissioning and restoration liability 721 - 721 Non-current decommissioning and restoration liability, at December 31, 2021 $ 89,697 $ 2,695 $ 92,392 |
Secured Notes Payable (Tables)
Secured Notes Payable (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of secured notes payable [Abstract] | |
Disclosure of detailed information about secured notes | As at December 31, 2021, the Company has an obligation for US$299.9 million or $379.0 million Canadian dollar equivalent from the secured notes payable (2020 - US$299.9 million or $381.7 million). December 31, 2021 December 31, 2020 Total outstanding secured notes payable $ 379,034 $ 381,674 Less: unamortized deferred transaction costs and issuance discount (3,517 ) (6,968 ) Total secured notes payable $ 375,517 $ 374,706 |
Net Finance Expenses (Tables)
Net Finance Expenses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Net Finance Income Expense Explanatory [Abstract] | |
Net Finance Expenses | Year ended December 31, 2021 Year ended December 31, 2020 Interest income $ 202 $ 170 Accretion expense on decommissioning and restoration liability (710 ) (1,052 ) Interest expense (32,476 ) (34,015 ) Amortization of deferred financing costs (5,910 ) (3,426 ) Other finance costs* (1,479 ) (1,674 ) $ (40,373 ) $ (39,997 ) *Included in other finance costs for the year ended December 31, 2021 is $59 (2020 - $90) related to interest on lease liabilities. |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of Shareholder's Equity [Line Items] | |
Disclosure of number and weighted average exercise prices of share options | The following table summarizes information about the stock options outstanding and exercisable: Year ended December 31, 2021 Year ended December 31, 2020 Number of options Weighted average exercise price Number of options Weighted average exercise price Balance at beginning of the year 2,455,002 $ 2.89 3,518,335 $ 3.26 Granted during the year 3,085,000 0.63 - - Expired during the year (200,000) 6.66 (980,000 ) 4.29 Forfeited during the year (660,001) 2.08 (83,333 ) 2.17 Balance at end of the year 4,680,001 $ 1.36 2,455,002 $ 2.89 Options exercisable at the end of the year 1,531,667 $ 2.72 1,711,669 $ 3.51 |
Disclosure of indirect measurement of fair value of goods or services received, share options granted during period | The fair value of the stock options granted have been estimated on the date of grant using the Black-Scholes option pricing model. The assumptions are presented below for options granted during the year ended December 31, 2021. Expected volatility is calculated by reference to the weekly closing share price for a period that reflects the expected life of the options. A total of 3,085,000 stock options were issued during the year ended December 31, 2021 of which 1,085,000 stock options were issued on February 3, 2021 vesting 1/3 on February 3, 2022, 1/3 on February 3, 2023 and 1/3 on February 3, 2024 and 2,000,000 stock options were issued on November 15, 2021 vesting 1/3 on November 15, 2022, 1/3 on November 15, 2023 and 1/3 on November 15, 2024 December 31, 2021 Exercise price $0.62 - Expected volatility 59.38 % - 64.20 % Expected option life 5 years Contractual option life 5 years Expected forfeiture none Expected dividend yield 0% Risk-free interest rate 0.46% - 1.48% Weighted average fair value per share granted $0.32 |
Disclosure of number and weighted average exercise prices of other equity instruments | The following table shows the RSU awards which have been granted and settled during the year: December 31, 2021 December 31, 2020 RSU Number of units Weighted average value grant date fair value Number of units Weighted average value Balance at beginning of year 863,333 $ 1.13 1,065,000 $ 1.31 Awards and payouts during the period (net): RSUs awarded 1,000,000 0.64 - - RSUs settled and common shares issued (206,667 ) 1.06 (98,334 ) 2.79 RSUs forfeited (229,999 ) 0.65 (103,333 ) 1.36 Balance at end of the year* 1,426,667 $ 0.87 863,333 $ 1.13 *As at December 31, 2021, 420,002 RSUs (2020 - 287,778 RSUs) have vested and have not yet been settled. |
Explanation of effect of share-based payments on entity's profit or loss | The share-based payments recognized as an expense for the years ended December 31, 2021 and 2020 are as follows: Year ended Year ended December 31, 2021 December 31, 2020 Expense recognized in the year for share-based payments $ 868 $ 983 |
Earnings per share | The following table sets forth the computation of basic and diluted earnings (loss) per share: Year ended December 31, 2021 Year ended December 31, 2020 Numerator Net income (loss) for the year $ 276,167 $ (263,429 ) Effect of dilutive securities 534 - $ 276,701 $ (263,429 ) Denominator For basic - weighted average number of shares outstanding 210,526,871 210,406,658 Effect of dilutive securities 1,426,667 - For diluted - adjusted weighted average number of shares outstanding 211,953,538 210,406,658 Earnings (loss) Per Share Basic $ 1.31 $ (1.25 ) Diluted $ 1.31 $ (1.25 ) |
Black scholes [Member] | |
Disclosure of Shareholder's Equity [Line Items] | |
Earnings per share | The following tables reflect the number of stock options outstanding, the weighted average of stock options outstanding, and the exercise price of stock options outstanding at December 31, 2021. At December 31, 2021 Expiry Date Black-Scholes Value Number of Options Number of Exercisable Options Exercise Price February 5, 2022 171 100,000 100,000 5.86 December 21, 2022 644 605,000 605,000 3.48 June 30, 2023 203 200,000 200,000 3.30 December 27, 2024 372 930,000 626,667 1.30 February 2, 2026 268 845,001 - 0.65 November 15, 2026 675 2,000,000 - 0.62 $ 2,333 4,680,001 1,531,667 $ 1.36 |
Selling, General And Administ_2
Selling, General And Administrative Expenses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Selling, General And Administrative Expenses | |
Selling, General And Administrative Expenses | Year ended December 31, 2021 Year ended December 31, 2020 Selling and marketing $ 5,259 $ 5,259 General and administrative: Consulting fees and payroll 3,535 1,946 Share-based payment expense 868 983 Depreciation 211 218 Office and administration 998 878 Professional fees 1,994 2,588 Promotion and investor relations 77 428 Director fees 512 278 Transfer agent and regulatory fees 360 461 Travel 44 114 $ 13,858 $ 13,153 |
Derivatives Assets And Liabil_2
Derivatives Assets And Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of Derivative Liabilities [Abstract] | |
Disclosure of detailed information about in derivative assets liabilities explanatory | The following table presents the various derivatives assets as at December 31, 2021 and 2020 December 31, 2021 December 31, 2020 Prepayment option embedded derivatives $ - $ 162 Currency derivative contract 731 - Current portion of embedded derivatives 44 23 Total $ 775 $ 185 |
Disclosure of inormation about amounts that affected statement of comprehensive income as result of hedge accounting | The following table presents amounts recognized in the Consolidated Statement of Comprehensive Income (Loss) for the years ended December 31, 2021 and 2020: Year ended Year ended December 31, 2021 December 31, 2020 Gain on currency derivative contract $ 61 $ 158 Loss on prepayment option embedded derivative (128 ) (31 ) Total $ (67 ) $ 127 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of detailed information about financial instruments [abstract] | |
Disclosure of detailed information about financial instruments | The following table shows the carrying amounts and fair values of the Company’s financial assets and financial liabilities, including their levels in the fair value hierarchy. Carrying amount Fair value December 31, 2021 Assets at amortized cost Fair value through profit and loss Liabilities at amortized cost Total Level 1 Level 2 Level 3 Total Financial assets measured at fair value Derivative assets $ - $ 775 $ - $ 775 $ - $ 775 $ - $ 775 $ - $ 775 $ - $ 775 Financial assets not measured at fair value Cash $ 25,000 $ - $ - $ 25,000 25,000 - - 25,000 Restricted cash 25,144 - - 25,144 25, 14 - - 25, 14 Amounts receivable 877 - - 877 877 - - 877 $ 51,021 $ - $ - $ 51,021 Finacial liabilities not measured at fair value Accounts payable and accrued liabilities $ - $ - $ 36,893 $ 36,893 36,893 - - 36,893 Secured notes payable - - 375,517 375,517 357,607 - - 357,607 $ - $ - $ 412,410 $ 412,410 Carrying amount Fair value December 31, 2020 Assets at Fair value through Liabilities at amortized cost Total Level 1 Level 2 Level 3 Total Financial assets measured at fair value Derivative assets $ - $ 185 $ - $ 185 $ - $ 185 $ - $ 185 $ - $ 185 $ - $ 185 Financial assets not measured at fair value Cash $ 35,152 $ - $ - $ 35,152 35,152 - - 35,152 Restricted cash 15,019 - - 15,019 15,019 - - 15,019 Amounts receivable 797 - - 797 797 - - 797 $ 50,968 $ - $ - $ 50,968 Financial liabilities not measured at fair value Accounts payable and accrued liabilities $ - $ - $ 41,010 $ 41,010 41,010 - - 41,010 Dunebridge revolving credit facility - - 31,813 31,813 - 31,813 - 31,813 Secured notes payable - - 374,706 374,706 329,632 - - 329,632 $ - $ - $ 447,529 $ 447,529 |
Disclosure of detailed information about financial liabilities and capital commitments including contractual obligations | The following table summarizes the contractual maturities of the Company’s significant financial liabilities and capital commitments, including contractual obligations: Less than 1 to 3 4 to 5 After 5 1 Year Years Years Years Total Gahcho Kué Diamond Mine commitments $ 4,391 $ - $ - $ - $ 4,391 Gahcho Kué Diamond Mine decommissioning fund 10,000 20,000 - - 30,000 Notes payable - Principal 379,034 - - - 379,034 Notes payable - Interest 30,323 - - - 30,323 $ 423,748 $ 20,000 $ - $ - $ 443,748 |
Disclosure of detailed information about net assets (liabilities) | As at December 31, 2021 and 2020, the Company had cash, derivative assets, accounts payable and accrued liabilities, the Dunebridge revolving credit facility and the secured notes payable that are in U.S. dollars. The Canadian dollar equivalent is as follows: December 31, December 31, 2021 2020 Cash $ 11,968 $ 33,703 Derivative assets 731 - Accounts payable and accrued liabilities (1,949 ) (2,538 ) Dunebridge revolving credit facility - (31,813 ) Secured notes payable (379,034 ) (381,674 ) Total $ (368,284 ) $ (382,322 ) |
Related Parties (Tables)
Related Parties (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Related Party [Abstract] | |
Disclosure of detailed information about related parties outstanding balances | The balances as at December 31, 2021 and 2020 were as follows: December 31, December 31, 2021 2020 Payable De Beers Canada Inc. as the operator of the GK Mine* $ 2,732 $ 2,789 Payable to De Beers Canada Inc. for interest on letters of credit 99 550 Revolving credit facility with Dunebridge Worldwide Ltd.** - 31,813 Payable to key management personnel 67 158 *included in accounts payable and accrued liabilities **does not include $318 of unamortized deferred transaction costs and issuance discount |
Disclosure of transactions between related parties | The transactions for the years ended December 31, 2021 and 2020 were as follows: Year ended Year ended December 31, 2021 December 31, 2020 The total of the transactions: International Investment and Underwriting $ 120 $ 23 Remuneration to key management personnel 3,329 1,875 Upside revenue on diamonds sold to Dunebridge Worldwide Ltd. 10,399 - Diamonds sold to Dunebridge Worldwide Ltd. - 66,671 Diamonds sold to De Beers Canada Inc. 10,338 12,610 Diamonds purchased from De Beers Canada Inc. 14,990 11,523 Finance costs incurred from De Beers Canada Inc. 135 198 Finance costs incurred from Dunebridge Worldwide Ltd. 5,882 852 Assets purchased from De Beers Canada Inc. - 42 Management fee charged by the Operator of the GK Mine 4,763 4,368 |
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities | The remuneration expense of directors and other members of key management personnel for the years ended December 31, 2021 and 2020 were as follows: Year ended Year ended December 31, 2021 December 31, 2020 Consulting fees, payroll, director fees, bonus and other short-term benefits $ 2,982 $ 1,357 Share-based payments 467 541 $ 3,449 $ 1,898 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Income Tax [Abstract] | |
Disclosure of Rate Reconciliation | The provision for income tax differs from the amount that would have resulted by applying the combined Canadian statutory income tax rates of approximately 26.5% (2020 - 26.5%): December 31, 2021 December 31, 2020 Income (loss) before income taxes $ 296,887 $ (263,429) 26.5% 26.5% Tax 78,676 (69,809 ) Expenses 926 (1,185 ) Change (79,602 ) 70,994 Deferred 20,720 - Deferred $ 20,720 $ - |
Disclosure of deferred taxes | December 31, 2021 December 31, 2020 Deferred tax liabilities Inventory $ (183) $ (449) Property, plant & equipment (82,773) (30) Derivative assets and debt (874) (519) Total deferred tax liabilities (83,830) (998) Deferred tax asset-tax losses 63,110 998 Net deferred taxes $ (20,720) $ - |
Disclosure of Unrecognized deferred tax assets | Deductible temporary differences for which deferred tax assets have not been recognized are attributable to the following: December 31, 2021 December 31, 2020 Property, plant and equipment $ - $ 104,795 Decommissioning and restoration liability 94,839 71,923 Income tax benefit of deferred 20,720 - Capital losses 942 426 Non-capital losses, expiring 2034 to 2041 132,659 351,218 Share issuance cost 50 178 $ 249,210 $ 528,540 |
Capital Management (Tables)
Capital Management (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of objectives, policies and processes for managing capital [abstract] | |
Capital Management | The Company’s capital is summarized as follows: December 31, December 31, 2021 2020 Secured notes payable $ 375,517 $ 374,706 Dunebridge revolving credit facility - 31,813 Share capital 631,717 631,498 Share-based payments reserve 7,469 6,820 Deficit (289,785) (565,952 ) $ 724,918 $ 478,885 |
Segmented Reporting (Tables)
Segmented Reporting (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of Segmented Reporting [Abstract] | |
Disclosure and detailed information about revenue from segments | As at and for the year ended December 31, 2021 GK Mine KNP Total Sales $ 308,723 $ - $ 308,723 Cost of sales: Production costs 140,099 - 140,099 Cost of acquired diamonds 15,723 - 15,723 Depreciation and depletion 39,173 - 39,173 Earnings from mine operations 113,728 - 113,728 Impairment reversal on property, plant and equipment (240,593 ) - (240,593 ) Exploration and evaluation expenses 604 4,943 5,547 Selling, general and administrative expenses 13,816 42 13,858 Operating income (loss) 339,901 (4,985 ) 334,916 Net finance expenses (40,367 ) (6 ) (40,373 ) Other income - 143 143 Derivative losses (67 ) - (67 ) Foreign exchange gains 2,268 - 2,268 Net $ 301,735 $ (4,848 ) $ 296,887 Total assets $ 705,465 $ 172,032 $ 877,497 Total $ 523,397 $ 3,365 $ 526,762 As at and for the year ended December 31, 2020 GK Mine KNP Total Sales $ 226,993 $- $ 226,993 Cost of sales: Production costs 153,679 - 153,679 Cost of acquired diamonds 11,088 - 11,088 Depreciation and depletion 63,711 - 63,711 Loss from mine operations (1,485) - (1,485) Impairment loss on property, plant and equipment 217,366 - 217,366 Exploration and evaluation expenses 1,076 2,731 3,807 Selling, general and administrative expenses 13,110 43 13,153 Operating loss (233,037) (2,774) (235,811) Net finance expenses (39,920) (77) (39,997) Derivative gains 127 - 127 Foreign exchange gains 12,252 - 12,252 Net loss before taxes $ (260,578) $ (2,851) $ (263,429) Total assets $ 424,272 $ 171,057 $ 595,329 Total liabilities $ 519,074 $ 2,555 $521,629 |
Nature of Operations and Goin_2
Nature of Operations and Going Concern - Additional Information (Detail) $ in Thousands, $ in Thousands | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Apr. 13, 2018 | Sep. 30, 2020 | Dec. 31, 2021USD ($) | Dec. 31, 2021CAD ($) | Dec. 29, 2021USD ($)shares | May 12, 2021CAD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020CAD ($) | Dec. 11, 2017USD ($) | |
Disclosure Of Nature of Operations and going concern [Line Items] | |||||||||
Proportion of ownership interests held by non-controlling interests | 49.00% | ||||||||
Notional amount | $ 379,034 | ||||||||
Dermot Desmond [Member] | |||||||||
Disclosure Of Nature of Operations and going concern [Line Items] | |||||||||
Borrowings | $ 50,000 | ||||||||
Issuance of Warrants | shares | 41,000,000 | ||||||||
Revolving Credit Facility1 [Member] | |||||||||
Disclosure Of Nature of Operations and going concern [Line Items] | |||||||||
Borrowings | $ 25,000 | ||||||||
Borrowings Maturity | December 15, 2020 | March 31, 2022 | |||||||
Senior secured notes [Member] | |||||||||
Disclosure Of Nature of Operations and going concern [Line Items] | |||||||||
Borrowings Maturity | mature on December 15, 2022 | ||||||||
Notional amount | $ 299,900 | $ 379,034 | $ 299,900 | $ 381,674 | $ 330,000 | ||||
Kennady North Project [Member] | |||||||||
Disclosure Of Nature of Operations and going concern [Line Items] | |||||||||
Proportion of ownership interest in joint operation | 100.00% | ||||||||
Gahcho Kue Diamond Mine [Member] | |||||||||
Disclosure Of Nature of Operations and going concern [Line Items] | |||||||||
Proportion of ownership interests held by non-controlling interests | 49.00% |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2021 | |
Ontario Inc. 2435572 [Member] | |
Disclosure of basis of preparation [Line Items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Ontario Inc 2435386 [Member] | |
Disclosure of basis of preparation [Line Items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Ontario Inc 2435386 [Member] | Gk mine [Member] | |
Disclosure of basis of preparation [Line Items] | |
Proportion of ownership interest in associate | 49.00% |
Kennady Diamonds Inc [Member] | |
Disclosure of basis of preparation [Line Items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Significant Accounting Polici_4
Significant Accounting Policies - Detailed Information about Property, Plant and Equipment Useful Life (Detail) | 12 Months Ended |
Dec. 31, 2021 | |
Corporate assets [Member] | |
Disclosure Of Significant Accounting Policies [Line Items] | |
Useful lives or depreciation rates, property, plant and equipment | two to seven years, straight line |
Vehicles [Member] | |
Disclosure Of Significant Accounting Policies [Line Items] | |
Useful lives or depreciation rates, property, plant and equipment | three to five years, straight line |
Production and related equipment [Member] | |
Disclosure Of Significant Accounting Policies [Line Items] | |
Useful lives or depreciation rates, property, plant and equipment | units of production over proven and probable reserves |
General infrastructure [Member] | |
Disclosure Of Significant Accounting Policies [Line Items] | |
Useful lives or depreciation rates, property, plant and equipment | units of production over proven and probable reserves |
Earthmoving equipment [Member] | |
Disclosure Of Significant Accounting Policies [Line Items] | |
Useful lives or depreciation rates, property, plant and equipment | straight line over shorter of life of mine or life of the asset |
Mineral properties [Member] | |
Disclosure Of Significant Accounting Policies [Line Items] | |
Useful lives or depreciation rates, property, plant and equipment | units of production over proven and probable reserves |
Assets under construction [Member] | |
Disclosure Of Significant Accounting Policies [Line Items] | |
Useful lives or depreciation rates, property, plant and equipment | not depreciated until ready for use |
Significant Accounting Polici_5
Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Significant Accounting Policies [Line Items] | |
Percentage of bid amount to be included in inventory | 51.00% |
De Beers [Member] | |
Disclosure Of Significant Accounting Policies [Line Items] | |
Percentage of bid price as revenue | 49.00% |
Amounts Receivable - Detailed I
Amounts Receivable - Detailed Information about Amounts Receivable (Detail) - CAD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure Of Amounts Receivable [Abstract] | ||
GST/HST receivable | $ 722 | $ 604 |
Other receivable | 155 | 193 |
Total | $ 877 | $ 797 |
Inventories - Detailed Informat
Inventories - Detailed Information about Inventories (Detail) - CAD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure Of Inventories Explanatory [Abstract] | ||
Ore stockpile | $ 26,411 | $ 9,203 |
Rough diamonds | 44,255 | 48,036 |
Supplies inventory | 39,166 | 33,267 |
Total | $ 109,832 | $ 90,506 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Inventories [Line Items] | ||
Depreciation and depletion included in inventories | $ 12,203 | $ 13,663 |
Percentage of payroll and employee benefits included in production costs | 49.00% | |
Employee benefits expense | $ 41,054 | 34,271 |
Cost of sales [member] | ||
Disclosure Of Inventories [Line Items] | ||
Inventory write-down | $ 0 | $ 17,000 |
Property, Plant and Equipment -
Property, Plant and Equipment - Detailed Information about Property, Plant and Equipment (Detail) - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | $ 451,411 | ||
Impairment loss | 240,593 | $ (217,366) | |
Ending balance | 714,480 | 451,411 | |
Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 1,079,749 | 1,027,584 | |
Decommissioning and restoration adjustment | 12,476 | 10,055 | |
Additions/transfers | [1] | 48,916 | 42,110 |
Disposals | (90) | ||
Ending balance | 1,141,051 | 1,079,749 | |
Accumulated depreciation, amortisation and impairment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | (628,338) | (355,316) | |
Depreciation and depletion | [2] | (38,868) | (55,656) |
Impairment loss | (217,366) | ||
Disposals | 42 | ||
Impairment reversal | 240,593 | ||
Ending balance | (426,571) | (628,338) | |
Property, plant and equipment [Member] | Kennady North Project [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 54 | ||
Ending balance | 122 | 54 | |
Property, plant and equipment [Member] | Kennady North Project [Member] | Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 90 | 90 | |
Decommissioning and restoration adjustment | 0 | 0 | |
Additions/transfers | [1] | 122 | 0 |
Disposals | (90) | ||
Ending balance | 122 | 90 | |
Property, plant and equipment [Member] | Kennady North Project [Member] | Accumulated depreciation, amortisation and impairment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | (36) | (23) | |
Depreciation and depletion | [2] | (6) | (13) |
Impairment loss | 0 | ||
Disposals | 42 | ||
Ending balance | 0 | (36) | |
Property, plant and equipment [Member] | Gahcho Kue Diamond Mine [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 274,143 | ||
Ending balance | 533,217 | 274,143 | |
Property, plant and equipment [Member] | Gahcho Kue Diamond Mine [Member] | Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 902,445 | 856,334 | |
Decommissioning and restoration adjustment | 12,228 | 9,777 | |
Additions/transfers | [1] | 45,115 | 36,334 |
Ending balance | 959,788 | 902,445 | |
Property, plant and equipment [Member] | Gahcho Kue Diamond Mine [Member] | Accumulated depreciation, amortisation and impairment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | (628,302) | (355,293) | |
Depreciation and depletion | [2] | (38,862) | (55,643) |
Impairment loss | (217,366) | ||
Impairment reversal | 240,593 | ||
Ending balance | (426,571) | (628,302) | |
Assets under construction [Member] | Kennady North Project [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 1,564 | ||
Ending balance | 1,564 | 1,564 | |
Assets under construction [Member] | Kennady North Project [Member] | Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 1,564 | 1,564 | |
Decommissioning and restoration adjustment | 0 | 0 | |
Additions/transfers | [1] | 0 | 0 |
Ending balance | 1,564 | 1,564 | |
Assets under construction [Member] | Kennady North Project [Member] | Accumulated depreciation, amortisation and impairment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 0 | 0 | |
Depreciation and depletion | [2] | ||
Impairment loss | 0 | ||
Ending balance | 0 | 0 | |
Assets under construction [Member] | Gahcho Kue Diamond Mine [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 6,506 | ||
Ending balance | 10,185 | 6,506 | |
Assets under construction [Member] | Gahcho Kue Diamond Mine [Member] | Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 6,506 | 730 | |
Decommissioning and restoration adjustment | 0 | 0 | |
Additions/transfers | [1] | 3,679 | 5,776 |
Ending balance | 10,185 | 6,506 | |
Assets under construction [Member] | Gahcho Kue Diamond Mine [Member] | Accumulated depreciation, amortisation and impairment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 0 | 0 | |
Depreciation and depletion | [2] | ||
Impairment loss | 0 | ||
Ending balance | 0 | 0 | |
Mining assets [member] | Kennady North Project [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 169,144 | ||
Ending balance | 169,392 | 169,144 | |
Mining assets [member] | Kennady North Project [Member] | Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 169,144 | 168,866 | |
Decommissioning and restoration adjustment | 248 | 278 | |
Additions/transfers | [1] | 0 | 0 |
Ending balance | 169,392 | 169,144 | |
Mining assets [member] | Kennady North Project [Member] | Accumulated depreciation, amortisation and impairment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 0 | 0 | |
Depreciation and depletion | [2] | ||
Impairment loss | 0 | ||
Ending balance | $ 0 | $ 0 | |
[1] | Included in additions of property, plant and equipment for GK is $34,319 (2020 - $28,939) related to deferred stripping of which $1,431 relates to the depreciation of earthmoving equipment (2020 - $1,781). | ||
[2] | Included in depreciation and depletion is $134 of depreciation on the right-of-use assets capitalized under IFRS 16 (2020 - $797). |
Property, Plant and Equipment_2
Property, Plant and Equipment - Additional Information (Detail) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021CAD ($)Carats | Dec. 31, 2020CAD ($) | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Impairment loss on property, plant and equipment | $ (240,593) | $ 217,366 |
Description of growth rate used to extrapolate cash flow projections | 2.50% | |
Reversal of impairment charges ofproperty, plant and equipment | (240,593) | $ 217,366 |
Mineral reserves and converted resources | $ 22,600 | |
Real discount rate | 7.90% | |
Estimated future price | $ 71 | |
Forward contract [member] | Bottom of range [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Foreign exchange rate | Carats | 1.27 | |
Forward contract [member] | Top of range [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Foreign exchange rate | Carats | 1.30 | |
Real Growth Escalation On Diamond Pricing [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Description of growth rate used to extrapolate cash flow projections | 2.50% | |
Gk mine [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Impairment loss on property, plant and equipment | $ 217,366 | |
Recoverable amount of asset | $ 281,600 | |
Description of discount rates applied to cash flow projections | 8.40% | |
Reversal of impairment charges ofproperty, plant and equipment | $ 240,593 | |
Income tax expense | 20,720 | |
Impairment reversal, carrying value | 557,000 | |
Depreciation and Depletion [Member] | IFRS 16 [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Depreciation right of use assets | 134 | $ 797 |
Gahcho Kue Diamond Mine [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Additions of property plant and equipment | 34,319 | 28,939 |
Gahcho Kue Diamond Mine [Member] | Earthmoving equipment [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Depreciation of earthmoving equipment | $ 1,431 | $ 1,781 |
Decommissioning And Restorati_3
Decommissioning And Restoration Liability - Summary of Decommissioning and Restoration Liability Assumptions (Detail) - Provision for decommissioning, restoration and rehabilitation costs [member] - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
GK Mine [Member] | ||
Decommissioning And Restoration Liability [Line Items] | ||
Expected undiscounted cash flows | $ 84,128 | $ 61,558 |
Discount rate | 1.42% | 0.67% |
Inflation rate | 2.00% | 2.00% |
Periods | 2030 | 2030 |
KNP [Member] | ||
Decommissioning And Restoration Liability [Line Items] | ||
Expected undiscounted cash flows | $ 2,467 | $ 2,268 |
Discount rate | 0.25% | 0.25% |
Inflation rate | 2.00% | 2.00% |
Periods | 2024 | 2024 |
Decommissioning And Restorati_4
Decommissioning And Restoration Liability - Summary of Decommissioning and Restoration Liability Activity (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Decommissioning And Restoration Liability [Line Items] | ||
Balance, beginning of year | $ 72,932 | $ 58,516 |
Change in estimate of discounted cash flows | 19,471 | 13,364 |
Accretion recorded during the year | 710 | 1,052 |
Balance, end of the year | 93,113 | 72,932 |
Less: current portion of decommissioning and restoration liability | 721 | 2,489 |
Non-current decommissioning and restoration liability | 92,392 | 70,443 |
GK Mine [Member] | ||
Decommissioning And Restoration Liability [Line Items] | ||
Balance, beginning of year | 70,491 | 56,429 |
Change in estimate of discounted cash flows | 19,223 | 13,086 |
Accretion recorded during the year | 704 | 976 |
Balance, end of the year | 90,418 | 70,491 |
Less: current portion of decommissioning and restoration liability | 721 | 2,489 |
Non-current decommissioning and restoration liability | 89,697 | 68,002 |
KNP [Member] | ||
Decommissioning And Restoration Liability [Line Items] | ||
Balance, beginning of year | 2,441 | 2,087 |
Change in estimate of discounted cash flows | 248 | 278 |
Accretion recorded during the year | 6 | 76 |
Balance, end of the year | 2,695 | 2,441 |
Less: current portion of decommissioning and restoration liability | 0 | 0 |
Non-current decommissioning and restoration liability | $ 2,695 | $ 2,441 |
Decommissioning And Restorati_5
Decommissioning And Restoration Liability - Additional Information (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Decommissioning And Restoration Liability [Abstract] | ||
Increase decrease in discounted cash flows of decommissioning restoration and rehabilitation provision | $ 19,471 | $ 13,364 |
Secured Notes Payable - Summary
Secured Notes Payable - Summary of Secured Notes (Detail) $ in Thousands, $ in Thousands | Dec. 31, 2021USD ($) | Dec. 31, 2021CAD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020CAD ($) | Dec. 11, 2017USD ($) |
Disclosure of secured notes payable [Line Items] | |||||
Total outstanding secured notes payable | $ 379,034 | ||||
Total secured notes payable | 299,900 | $ 375,517 | $ 299,900 | $ 374,706 | |
Senior secured notes [Member] | |||||
Disclosure of secured notes payable [Line Items] | |||||
Total outstanding secured notes payable | $ 299,900 | 379,034 | $ 299,900 | 381,674 | $ 330,000 |
Less: unamortized deferred transaction costs and issuance discount | (3,517) | (6,968) | |||
Total secured notes payable | $ 375,517 | $ 374,706 |
Secured Notes Payable - Additio
Secured Notes Payable - Additional Information (Detail) $ in Thousands, $ in Thousands | 9 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2020USD ($) | Dec. 31, 2021CAD ($) | Dec. 31, 2021USD ($) | May 12, 2021CAD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2020USD ($) | Jun. 30, 2020USD ($) | Dec. 11, 2017USD ($) | |
Disclosure of secured notes payable [Line Items] | ||||||||
Notional amount | $ 379,034 | |||||||
Undrawn borrowing facilities | $ 0 | $ 31,813 | ||||||
Description of range of percentages of commitment fee payable on credit facilities | The RCF included a commitment fee of between 0.9625% and 1.2375% | |||||||
Description of range of percentages of commitment fee payable on drawn credit facilities | upon drawing on the RCF, an interest rate of LIBOR plus 2.5% to 4.5% per annum would be charged for the number of days the funds are outstanding. The commitment fee and interest rate varied based on the leverage ratio of the Company at the time. | |||||||
Description of financial ratios | Under the Dunebridge RCF, permitted distributions to third parties (which include dividends) are subject to the Company having a net debt to EBITDA ratio of less than or equal to 1.75:1. Net debt is equal to total debt, less cash and cash equivalents. The aggregate amount of all distributions paid during the rolling four quarters up to and including the date of such distribution does not exceed 25% of free cash flows (“FCF”) during such period. FCF is defined as EBITDA minus, without duplication, (a) capital expenditures, (b) cash taxes, (c) any applicable standby fee, other fees or finance costs payable to the finance parties in connection with the Dunebridge RCF, (d) interest expenses and (e) any indebtedness (including mandatory prepayments) permitted under the existing agreement. Also, the available liquidity after payment of a distribution must be greater than or equal to US$60 million for distributions paid during a quarter ending March 31, or US$50 million for other quarters, where the aggregate amount of the all-advances outstanding does not exceed US$10 million. | |||||||
Information about restrictions or covenants imposed debt agreement | Subject to certain limitations and exceptions, the amount of the restricted payments, which include dividends and share buybacks, is limited to a maximum dollar threshold, which is calculated at an opening basket of US$10 million plus 50% of the historical consolidated net income, subject to certain adjustments, reported from the quarter of issuance and up to the most recently available financial statements at the time of such restricted payment, plus an amount not to exceed the greater of US$15 million and 2% of total assets as defined in the indenture. | |||||||
Repayments of bonds, notes and debentures | $ 38,855 | |||||||
Covid Nineteen Pandemic [Member] | ||||||||
Disclosure of secured notes payable [Line Items] | ||||||||
Borrowings | $ 25,000 | |||||||
Leverage ratio [Member] | ||||||||
Disclosure of secured notes payable [Line Items] | ||||||||
Description of financial ratios | upon drawing on the RCF, an interest rate of LIBOR plus 2.5% to 4.5% per annum would be charged for the number of days the funds are outstanding. The commitment fee and interest rate varied based on the leverage ratio of the Company at the time. | |||||||
Borrowings, interest rate basis | LIBOR plus 2.5% to 4.5% per annum | |||||||
Leverage ratio [Member] | Bottom of range [member] | ||||||||
Disclosure of secured notes payable [Line Items] | ||||||||
Borrowings, adjustment to interest rate basis | 2.50% | 2.50% | ||||||
Leverage ratio [Member] | Top of range [member] | ||||||||
Disclosure of secured notes payable [Line Items] | ||||||||
Borrowings, adjustment to interest rate basis | 4.50% | 4.50% | ||||||
Senior secured notes [Member] | ||||||||
Disclosure of secured notes payable [Line Items] | ||||||||
Notional amount | $ 379,034 | $ 299,900 | $ 381,674 | $ 299,900 | $ 330,000 | |||
Borrowings, interest rate | 8.00% | |||||||
Borrowings, maturity | mature on December 15, 2022 | |||||||
Revolving Credit Facility1 [Member] | ||||||||
Disclosure of secured notes payable [Line Items] | ||||||||
Borrowings, maturity | December 15, 2020 | March 31, 2022 | ||||||
Undrawn borrowing facilities | $ 50,000 | |||||||
Repayments of bonds, notes and debentures | $ 25,000 | |||||||
Borrowings | $ 25,000 | |||||||
Revolving Credit Facility1 [Member] | Dunebridge Worldwide LTD [Member] | ||||||||
Disclosure of secured notes payable [Line Items] | ||||||||
Borrowings, interest rate | 5.00% | |||||||
Undrawn borrowing facilities | $ 2,300 | |||||||
Borrowings | 25,000 | |||||||
Revolving Credit Facility1 [Member] | Bottom of range [member] | ||||||||
Disclosure of secured notes payable [Line Items] | ||||||||
Borrowings | 25,000 | |||||||
Revolving Credit Facility1 [Member] | Top of range [member] | ||||||||
Disclosure of secured notes payable [Line Items] | ||||||||
Borrowings | $ 50,000 | |||||||
Revolving credit | Dunebridge Worldwide LTD [Member] | ||||||||
Disclosure of secured notes payable [Line Items] | ||||||||
Borrowings | $ 22,700 |
Dunebridge Revolving Credit F_2
Dunebridge Revolving Credit Facility And Dunebridge Term Facility - Additional Information (Detail) $ in Thousands, $ in Millions | Sep. 24, 2021CAD ($) | Jul. 15, 2021CAD ($) | May 17, 2021CAD ($) | May 12, 2021CAD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021CAD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2021CAD ($) | Jul. 30, 2021CAD ($) |
Disclosure Of Dunebridge Revolving Credit Facility [Line Items] | ||||||||||
Description of financial ratios | Under the Dunebridge RCF, permitted distributions to third parties (which include dividends) are subject to the Company having a net debt to EBITDA ratio of less than or equal to 1.75:1. Net debt is equal to total debt, less cash and cash equivalents. The aggregate amount of all distributions paid during the rolling four quarters up to and including the date of such distribution does not exceed 25% of free cash flows (“FCF”) during such period. FCF is defined as EBITDA minus, without duplication, (a) capital expenditures, (b) cash taxes, (c) any applicable standby fee, other fees or finance costs payable to the finance parties in connection with the Dunebridge RCF, (d) interest expenses and (e) any indebtedness (including mandatory prepayments) permitted under the existing agreement. Also, the available liquidity after payment of a distribution must be greater than or equal to US$60 million for distributions paid during a quarter ending March 31, or US$50 million for other quarters, where the aggregate amount of the all-advances outstanding does not exceed US$10 million. | |||||||||
Repayment of Debt | March 31, 2022 | |||||||||
Extension fee | $ 500 | |||||||||
Cash | $ 8,500 | |||||||||
Deferred finacing fee | $ 319 | |||||||||
Revolving Credit Facility1 [Member] | ||||||||||
Disclosure Of Dunebridge Revolving Credit Facility [Line Items] | ||||||||||
Borrowings | $ 25,000 | |||||||||
Percentage of commitment fee | 2.00% | 1.00% | ||||||||
Drawings | $ 5 | |||||||||
Maturity of borrwoings | December 15, 2020 | March 31, 2022 | ||||||||
Revolving Credit Facility1 [Member] | Top of range [member] | ||||||||||
Disclosure Of Dunebridge Revolving Credit Facility [Line Items] | ||||||||||
Borrowings | $ 50 | |||||||||
Dividends recognised as distributon | $ 50 | |||||||||
Term Facility [Member] | ||||||||||
Disclosure Of Dunebridge Revolving Credit Facility [Line Items] | ||||||||||
Borrowings | $ 22,000 | $ 33,000 | ||||||||
Borrowings, interest rate | 10.00% | |||||||||
Percentage of commitment fee | 5.00% | |||||||||
Borrowings repaid | $ 22,000 | $ 9,000 | ||||||||
Drawings | $ 23,000 | 8,000 | ||||||||
Maturity of borrwoings | December 31, 2021 | |||||||||
Cash | $ 2,000 | $ 2 | ||||||||
Dunebridge Worldwide LTD [Member] | Revolving Credit Facility1 [Member] | ||||||||||
Disclosure Of Dunebridge Revolving Credit Facility [Line Items] | ||||||||||
Borrowings | $ 25 | $ 25 | ||||||||
Borrowings, interest rate | 5.00% | 5.00% | ||||||||
Aggregate amount of the all advances outstanding | $ 10 | |||||||||
Dunebridge Worldwide LTD [Member] | Revolving Credit Facility1 [Member] | Top of range [member] | ||||||||||
Disclosure Of Dunebridge Revolving Credit Facility [Line Items] | ||||||||||
Available liquidity after payment of distributions | $ 60 |
Net Finance Expense - Summary o
Net Finance Expense - Summary of Finance Income Expenses (Detail) - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
Disclosure Of Net Finance Income Expense Explanatory [Abstract] | |||
Interest income | $ 202 | $ 170 | |
Accretion expense on decommissioning and restoration liability | (710) | (1,052) | |
Interest expense | (32,476) | (34,015) | |
Amortization of deferred financing costs | (5,910) | (3,426) | |
Other finance costs | [1] | (1,479) | (1,674) |
Net finance income (expense) | $ (40,373) | $ (39,997) | |
[1] | Included in other finance costs for the year ended December 31, 2021 is $59 (2020 - $90) related to interest on lease liabilities. |
Net Finance Expense - Additiona
Net Finance Expense - Additional Information (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Net Finance Income Expense Explanatory [Abstract] | ||
Interest expenses on lease liabilitites | $ 59 | $ 90 |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Stock Options (Detail) | 1 Months Ended | 12 Months Ended | ||||||
Jan. 31, 2021Carats$ / shares | Dec. 31, 2021 | Dec. 31, 2021$ / shares | Dec. 31, 2021Carats | Dec. 31, 2021$ / shares | Dec. 31, 2020$ / shares | Dec. 31, 2021$ / shares | Dec. 31, 2021Carats | |
Disclosure of Shareholder's Equity [Abstract] | ||||||||
Number of options, Balance at beginning of year | 2,455,002 | 2,455,002 | 3,518,335 | |||||
Number of options, Granted during the year | 3,101,042 | 3,085,000 | 3,085,000 | |||||
Number of options, Expired during the year | (200,000) | (980,000) | ||||||
Number of options, Forfeited during the year | (660,001) | (83,333) | ||||||
Number of options, Balance at end of the year | 4,680,001 | 4,680,001 | 2,455,002 | |||||
Number of options, Options exercisable at the end of the year | 1,531,667 | 1,531,667 | 1,531,667 | 1,531,667 | 1,711,669 | 1,531,667 | ||
Weighted average exercise price, Balance at beginning of year | $ 2.89 | $ 2.89 | $ 3.26 | |||||
Weighted average exercise price, Granted during the year | 0.63 | |||||||
Weighted average exercise price, Expired during the period | 6.66 | 4.29 | ||||||
Weighted average exercise price, Forfeited during the year | 2.08 | 2.17 | ||||||
Weighted average exercise price, Balance at end of the year | (per share) | $ 1.36 | $ 1.36 | 2.89 | |||||
Weighted average exercise price, Options exercisable at the end of the year | $ 3.51 | $ 2.72 |
Shareholders' Equity - Assumpti
Shareholders' Equity - Assumptions of Options Granted (Detail) | 12 Months Ended |
Dec. 31, 2021yr$ / shares | |
Disclosure of Shareholder's Equity [Line Items] | |
Expected option life (in years) | yr | 5 |
Contractual option life (in years) | yr | 5 |
Expected dividend yield | 0.00% |
Weighted average fair value per share granted | $ 0.32 |
Bottom of range [member] | |
Disclosure of Shareholder's Equity [Line Items] | |
Exercise price | $ 0.62 |
Expected volatility | 59.38% |
Risk-free interest rate | 0.46% |
Top of range [member] | |
Disclosure of Shareholder's Equity [Line Items] | |
Exercise price | $ 0.65 |
Expected volatility | 64.20% |
Risk-free interest rate | 1.48% |
Shareholders' Equity - Summar_2
Shareholders' Equity - Summary of Number of Stock Options Outstanding, the Weighted Average of Options Outstanding, and the Exercise Price of Stock Options Outstanding (Detail) $ / shares in Units, $ in Thousands | Dec. 31, 2021 | Dec. 31, 2021$ / shares | Dec. 31, 2021CAD ($) | Dec. 31, 2021Carats | Dec. 31, 2021$ / shares | Dec. 31, 2020$ / shares | Dec. 31, 2019$ / shares |
Disclosure of Shareholder's Equity [Line Items] | |||||||
Number of share options outstanding in share-based payment arrangement | 4,680,001 | 4,680,001 | 2,455,002 | 3,518,335 | |||
Number of share options exercisable in share-based payment arrangement | 1,531,667 | 1,531,667 | 1,711,669 | ||||
Weighted average exercise price of share options outstanding in share-based payment arrangement | (per share) | $ 1.36 | $ 1.36 | $ 2.89 | $ 3.26 | |||
February 5, 2022 | |||||||
Disclosure of Shareholder's Equity [Line Items] | |||||||
Number of share options outstanding in share-based payment arrangement | 100,000 | ||||||
Number of share options exercisable in share-based payment arrangement | 100,000 | ||||||
Weighted average exercise price of share options outstanding in share-based payment arrangement | $ / shares | 5.86 | ||||||
December 21, 2022 | |||||||
Disclosure of Shareholder's Equity [Line Items] | |||||||
Number of share options outstanding in share-based payment arrangement | 605,000 | ||||||
Number of share options exercisable in share-based payment arrangement | 605,000 | ||||||
Weighted average exercise price of share options outstanding in share-based payment arrangement | $ / shares | 3.48 | ||||||
June 30, 2023 | |||||||
Disclosure of Shareholder's Equity [Line Items] | |||||||
Number of share options outstanding in share-based payment arrangement | 200,000 | ||||||
Number of share options exercisable in share-based payment arrangement | 200,000 | ||||||
Weighted average exercise price of share options outstanding in share-based payment arrangement | $ / shares | 3.30 | ||||||
December 27, 2024 | |||||||
Disclosure of Shareholder's Equity [Line Items] | |||||||
Number of share options outstanding in share-based payment arrangement | 930,000 | ||||||
Number of share options exercisable in share-based payment arrangement | 626,667 | ||||||
Weighted average exercise price of share options outstanding in share-based payment arrangement | $ / shares | 1.30 | ||||||
February 2, 2026 | |||||||
Disclosure of Shareholder's Equity [Line Items] | |||||||
Number of share options outstanding in share-based payment arrangement | 845,001 | ||||||
Number of share options exercisable in share-based payment arrangement | 0 | ||||||
Weighted average exercise price of share options outstanding in share-based payment arrangement | $ / shares | 0.65 | ||||||
November 15, 2026 | |||||||
Disclosure of Shareholder's Equity [Line Items] | |||||||
Number of share options outstanding in share-based payment arrangement | 2,000,000 | ||||||
Number of share options exercisable in share-based payment arrangement | 0 | ||||||
Weighted average exercise price of share options outstanding in share-based payment arrangement | $ / shares | $ 0.62 | ||||||
Black scholes [Member] | |||||||
Disclosure of Shareholder's Equity [Line Items] | |||||||
Weighted average fair value at measurement date, share options granted | $ | $ 2,333 | ||||||
Black scholes [Member] | February 5, 2022 | |||||||
Disclosure of Shareholder's Equity [Line Items] | |||||||
Weighted average fair value at measurement date, share options granted | $ | 171 | ||||||
Black scholes [Member] | December 21, 2022 | |||||||
Disclosure of Shareholder's Equity [Line Items] | |||||||
Weighted average fair value at measurement date, share options granted | $ | 644 | ||||||
Black scholes [Member] | June 30, 2023 | |||||||
Disclosure of Shareholder's Equity [Line Items] | |||||||
Weighted average fair value at measurement date, share options granted | $ | 203 | ||||||
Black scholes [Member] | December 27, 2024 | |||||||
Disclosure of Shareholder's Equity [Line Items] | |||||||
Weighted average fair value at measurement date, share options granted | $ | 372 | ||||||
Black scholes [Member] | February 2, 2026 | |||||||
Disclosure of Shareholder's Equity [Line Items] | |||||||
Weighted average fair value at measurement date, share options granted | $ | 268 | ||||||
Black scholes [Member] | November 15, 2026 | |||||||
Disclosure of Shareholder's Equity [Line Items] | |||||||
Weighted average fair value at measurement date, share options granted | $ | $ 675 |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of RSU Awards (Detail) | 1 Months Ended | 12 Months Ended | |||
Jan. 31, 2021Carats$ / shares | Dec. 31, 2021$ / shares | Dec. 31, 2021CAD ($)Carats$ / shares | Dec. 31, 2020$ / shares | Dec. 31, 2020CAD ($)Carats$ / shares | |
Disclosure of Shareholder's Equity [Line Items] | |||||
Weighted average exercise price, Balance at beginning of year | $ 2.89 | $ 3.26 | |||
Weighted average value options awarded | 0.63 | ||||
Weighted average exercise price, Balance at end of the year | (per share) | $ 1.36 | $ 1.36 | $ 2.89 | ||
Restricted Stock Units (RSUs) [Member] | |||||
Disclosure of Shareholder's Equity [Line Items] | |||||
Number of units Balance at beginning of year | Carats | 863,333 | 863,333 | 1,065,000 | ||
Number of units RSUs awarded | Carats | 1,000,000 | 0 | |||
Number of units RSUs settled and common shares issued | Carats | (206,667) | (98,334) | |||
Number of units RSUs forfeited | Carats | (229,999) | (103,333) | |||
Number of units Balance at Ending of year | Carats | 1,426,667 | 863,333 | |||
Weighted average exercise price, Balance at beginning of year | $ 1.13 | 1.13 | $ 1.31 | ||
Weighted average value options awarded | 0.64 | 0 | |||
Weighted average RSUs settled and common shares issued | $ | $ 1,060 | $ 2,790 | |||
Weighted average value RSUs forfeited | 0.65 | 1.36 | |||
Weighted average exercise price, Balance at end of the year | $ 0.87 | $ 1.13 |
Shareholders' Equity - Share-Ba
Shareholders' Equity - Share-Based Payments Recognized (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of Shareholder's Equity [Abstract] | ||
Expense recognized in the year for share-based payments | $ 868 | $ 983 |
Shareholders' Equity - Computat
Shareholders' Equity - Computation of Basic and Diluted Loss Per Share (Detail) - CAD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Numerator | ||
Net income (loss) for the year | $ 276,167 | $ (263,429) |
Effect of dilutive securities | 534 | 0 |
Net income (loss) for the year | $ 276,701 | $ (263,429) |
Denominator | ||
For basic - weighted average number of shares outstanding | 210,526,871 | 210,406,658 |
Effect of dilutive securities | 1,426,667 | 0 |
For diluted - adjusted weighted average number of shares outstanding | 211,953,538 | 210,406,658 |
Earnings (loss) Per Share | ||
Basic | $ 1.31 | $ (1.25) |
Diluted | $ 1.31 | $ (1.25) |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||
Jan. 31, 2021Carats$ / shares | Dec. 31, 2021shares | Dec. 31, 2021shares | Dec. 31, 2021USD ($)shares | Dec. 31, 2021shares | Dec. 31, 2021$ / sharesshares | Dec. 31, 2021Caratsshares | Dec. 31, 2021$ / sharesshares | Dec. 31, 2020USD ($)sharesCarats$ / shares | |
Disclosure of Shareholder's Equity [Line Items] | |||||||||
Number of share options granted in share-based payment arrangement | 3,101,042 | 3,085,000 | 3,085,000 | ||||||
Options with potential future dilutive effect not included in calculation of diluted earnings per share | 2,455,002 | ||||||||
Dividends declared and paid | $ | $ 0 | $ 0 | |||||||
Restricted stock units with potential future dilutive effect not included in calculation of diluted earnings per share | 863,333 | ||||||||
weighted average remaining contractual life of the options outstanding | 3 years 7 months 6 days | 2 years 8 months 19 days | |||||||
Share based compensation by share based payment arrangement exercise price per share | $ / shares | $ 0.63 | ||||||||
Dilutive stock options | 1,426,667 | 0 | |||||||
Common shares [member] | |||||||||
Disclosure of Shareholder's Equity [Line Items] | |||||||||
Common shares issued and fully paid | 210,697,474 | 210,697,474 | 210,697,474 | 210,697,474 | 210,697,474 | 210,697,474 | 210,697,474 | 210,490,807 | |
Restricted Stock Units [Member] | |||||||||
Disclosure of Shareholder's Equity [Line Items] | |||||||||
Number of other equity instruments exercised or vested in share-based payment arrangement | 420,002 | 287,778 | |||||||
Share based compensation by share based payment arrangement exercise price per share | $ / shares | $ 0.64 | $ 0 | |||||||
Share based compensation by share based payment arrangement equity instruments other than options granted during the period | Carats | 1,000,000 | 0 | |||||||
Dilutive stock options | 4,680,001 | ||||||||
Stock options granted [Member] | |||||||||
Disclosure of Shareholder's Equity [Line Items] | |||||||||
Share based compensation by share based payment arrangement exercise price per share | $ / shares | $ 0.714 | ||||||||
Restricted stock units granted [Member] | Restricted Stock Units [Member] | |||||||||
Disclosure of Shareholder's Equity [Line Items] | |||||||||
Share based compensation by share based payment arrangement equity instruments other than options granted during the period | 1,142,493 | ||||||||
Share based compensation by share based payment arrangement equity instruments other than options granted during the period weighted average fair value per share | $ / shares | $ 0.714 | ||||||||
Top of range [member] | |||||||||
Disclosure of Shareholder's Equity [Line Items] | |||||||||
Number of share options granted in share-based payment arrangement | Carats | 2,439,668 | ||||||||
Description of vesting share based payment arrangement | 1/3 on January 17, 2023, 1/3 on January 17, 2024 and 1/3 on January 17, 2025 | ||||||||
Bottom of range [member] | |||||||||
Disclosure of Shareholder's Equity [Line Items] | |||||||||
Number of share options granted in share-based payment arrangement | Carats | 661,376 | ||||||||
Description of vesting share based payment arrangement | 1/3 on February 21, 2023, 1/3 February 21, 2024 and 1/3 February 21, 2025 | ||||||||
Long-Term Equity Incentive Plan [Member] | |||||||||
Disclosure of Shareholder's Equity [Line Items] | |||||||||
Percentage of shares reserved for issue under options and contracts for sale of shares | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | ||
Number of instruments granted in share-based payment arrangement | 21,069,747 | ||||||||
Option Issued Slot One [Member] | |||||||||
Disclosure of Shareholder's Equity [Line Items] | |||||||||
Number of share options granted in share-based payment arrangement | Carats | 1,085,000 | ||||||||
Description of vesting share based payment arrangement | February 3, 2021 vesting 1/3 on February 3, 2022, 1/3 on February 3, 2023 and 1/3 on February 3, 2024 | ||||||||
Option Issued Slot Two [Member] | |||||||||
Disclosure of Shareholder's Equity [Line Items] | |||||||||
Number of share options granted in share-based payment arrangement | Carats | 2,000,000 | ||||||||
Description of vesting share based payment arrangement | November 15, 2021 vesting 1/3 on November 15, 2022, 1/3 on November 15, 2023 and 1/3 on November 15, 2024 |
Selling, General And Administ_3
Selling, General And Administrative Expenses - Disclosure of detailed information about Selling, general and administrative expense (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Selling, General And Administrative Expenses | ||
Selling and marketing | $ 5,259 | $ 5,259 |
General and administrative: | ||
Consulting fees and payroll | 3,535 | 1,946 |
Share-based payment expense | 868 | 983 |
Depreciation | 211 | 218 |
Office and administration | 998 | 878 |
Professional fees | 1,994 | 2,588 |
Promotion and investor relations | 77 | 428 |
Director fees | 512 | 278 |
Transfer agent and regulatory fees | 360 | 461 |
Travel | 44 | 114 |
Selling, general and administrative expense | $ 13,858 | $ 13,153 |
Derivatives Assets And Liabil_3
Derivatives Assets And Liabilities - Disclosure of detailed information about in derivative assets liabilities explanatory (Details) - CAD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure Of Derivative Financial Instruments Assets And Liabilities [Line Items] | ||
Derivative financial assets liabilities net | $ 775 | $ 185 |
Non-current derivative assets | 162 | |
Embedded Derivative [Member] | ||
Disclosure Of Derivative Financial Instruments Assets And Liabilities [Line Items] | ||
Derivative financial assets liabilities net | 0 | 162 |
Non-current derivative assets | 44 | 23 |
Currency derivative contract [Member] | ||
Disclosure Of Derivative Financial Instruments Assets And Liabilities [Line Items] | ||
Derivative financial assets liabilities net | $ 731 | $ 0 |
Derivatives Assets And Liabil_4
Derivatives Assets And Liabilities - Disclosure Of Information About Amounts That Affected Statement Of Comprehensive Income As Result Of Hedge Accounting (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of Derivative Liabilities [Line Items] | ||
(Losses) Gains on change in fair value of derivatives | $ (67) | $ 127 |
Currency Derivative Contract [Member] | ||
Disclosure of Derivative Liabilities [Line Items] | ||
(Losses) Gains on change in fair value of derivatives | 61 | 158 |
Embedded Derivative [Member] | ||
Disclosure of Derivative Liabilities [Line Items] | ||
(Losses) Gains on change in fair value of derivatives | $ (128) | $ (31) |
Derivatives Assets And Liabil_5
Derivatives Assets And Liabilities - Additional Information (Detail) $ in Thousands, $ in Thousands | Jan. 01, 2022CAD ($)contract | Dec. 31, 2021USD ($)contract | Dec. 14, 2020 | Dec. 31, 2021CAD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020CAD ($) | Dec. 11, 2017USD ($) |
Disclosure of Derivative Liabilities [Line Items] | |||||||
Notional amount | $ 379,034 | ||||||
Senior secured notes [Member] | |||||||
Disclosure of Derivative Liabilities [Line Items] | |||||||
Notional amount | $ 299,900 | $ 379,034 | $ 299,900 | $ 381,674 | $ 330,000 | ||
Borrowings redemption price percentage | 100.00% | ||||||
Foreign currency put option contract [Member] | |||||||
Disclosure of Derivative Liabilities [Line Items] | |||||||
Notional amount | $ 22,000 | ||||||
Strike price | contract | 1.28 | ||||||
Settlement Dates Of Put Option Contract | February 2022 to December 2022. | ||||||
Foreign currency put option contract [Member] | Event After Reporting Period [Member] | |||||||
Disclosure of Derivative Liabilities [Line Items] | |||||||
Notional amount | $ 22,000 | ||||||
Strike price | contract | 1.25 | ||||||
Settlement Dates Of Put Option Contract | February 2022 to December 2022. |
Financial Instruments - Carryin
Financial Instruments - Carrying Amounts and Fair Values of Financial Assets and Financial Liabilities Levels In Fair Value Hierarchy (Detail) $ in Thousands, $ in Millions | Dec. 31, 2021CAD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019CAD ($) |
Financial assets designated as measured at fair value through profit or loss [Abstract] | |||||
Derivative assets | $ 775 | $ 185 | |||
Financial assets classified as cash, amounts receivable and restricted cash, carrying amount | 775 | 185 | |||
Financial assets designated as not measured at fair value [Abstract] | |||||
Cash | 25,000 | 35,152 | $ 34,751 | ||
Amounts receivable | 877 | 797 | |||
Restricted cash | 25,144 | 15,019 | |||
Financial assets classified as cash, amounts receivable and restricted cash, carrying amount | 51,021 | 50,968 | |||
Designated financial liabilities at not fair value through profit or loss [Abstract] | |||||
Accounts payable and accrued liabilities | 36,893 | 41,010 | |||
Dunebridge revolving credit facility | 0 | 31,813 | |||
Secured notes payable | 375,517 | $ 299.9 | 374,706 | $ 299.9 | |
Financial liabilities classified as derivative liabilities, accounts payable and accrued liabilities, carrying amount | 412,410 | 447,529 | |||
Financial liabilities at fair value through profit or loss, category [member] | |||||
Financial assets designated as measured at fair value through profit or loss [Abstract] | |||||
Derivative assets | 775 | 185 | |||
Financial assets classified as derivative assets amounts receivable and restricted cash carrying amount | 775 | 185 | |||
Financial assets designated as not measured at fair value [Abstract] | |||||
Cash | 0 | 0 | |||
Amounts receivable | 0 | 0 | |||
Restricted cash | 0 | 0 | |||
Financial assets classified as cash, amounts receivable and restricted cash, carrying amount | 0 | 0 | |||
Designated financial liabilities at not fair value through profit or loss [Abstract] | |||||
Accounts payable and accrued liabilities | 0 | 0 | |||
Dunebridge revolving credit facility | 0 | ||||
Secured notes payable | 0 | 0 | |||
Financial liabilities classified as derivative liabilities, accounts payable and accrued liabilities, carrying amount | 0 | 0 | |||
Financial liabilities at amortised cost, category [member] | |||||
Financial assets designated as measured at fair value through profit or loss [Abstract] | |||||
Derivative assets | 0 | 0 | |||
Financial assets classified as cash, amounts receivable and restricted cash, carrying amount | 0 | 0 | |||
Financial assets designated as not measured at fair value [Abstract] | |||||
Cash | 0 | 0 | |||
Amounts receivable | 0 | 0 | |||
Restricted cash | 0 | 0 | |||
Financial assets classified as cash, amounts receivable and restricted cash, carrying amount | 0 | 0 | |||
Designated financial liabilities at not fair value through profit or loss [Abstract] | |||||
Accounts payable and accrued liabilities | 36,893 | 41,010 | |||
Dunebridge revolving credit facility | 31,813 | ||||
Secured notes payable | 375,517 | 374,706 | |||
Financial liabilities classified as derivative liabilities, accounts payable and accrued liabilities, carrying amount | 412,410 | 447,529 | |||
Cash at fair falue [Member] | |||||
Financial assets designated as measured at fair value through profit or loss [Abstract] | |||||
Derivative assets | 775 | 185 | |||
Financial assets designated as not measured at fair value [Abstract] | |||||
Cash | 25,000 | 35,152 | |||
Amounts receivable | 877 | 797 | |||
Restricted cash | 25,144 | 15,019 | |||
Designated financial liabilities at not fair value through profit or loss [Abstract] | |||||
Accounts payable and accrued liabilities | 36,893 | 41,010 | |||
Dunebridge revolving credit facility | 31,813 | ||||
Secured notes payable | 357,607 | 329,632 | |||
Financial assets at amortised cost, category [member] | |||||
Financial assets designated as measured at fair value through profit or loss [Abstract] | |||||
Derivative assets | 0 | 0 | |||
Financial assets classified as cash, amounts receivable and restricted cash, carrying amount | 0 | 0 | |||
Financial assets designated as not measured at fair value [Abstract] | |||||
Cash | 25,000 | 35,152 | |||
Amounts receivable | 877 | 797 | |||
Restricted cash | 25,144 | 15,019 | |||
Financial assets classified as cash, amounts receivable and restricted cash, carrying amount | 51,021 | 50,968 | |||
Designated financial liabilities at not fair value through profit or loss [Abstract] | |||||
Accounts payable and accrued liabilities | 0 | 0 | |||
Dunebridge revolving credit facility | 0 | ||||
Secured notes payable | 0 | 0 | |||
Financial liabilities classified as derivative liabilities, accounts payable and accrued liabilities, carrying amount | 0 | 0 | |||
Level 1 of fair value hierarchy [member] | |||||
Financial assets designated as measured at fair value through profit or loss [Abstract] | |||||
Derivative assets | 0 | 0 | |||
Financial assets designated as not measured at fair value [Abstract] | |||||
Cash | 25,000 | 35,152 | |||
Amounts receivable | 877 | 797 | |||
Restricted cash | 25,144 | 15,019 | |||
Designated financial liabilities at not fair value through profit or loss [Abstract] | |||||
Accounts payable and accrued liabilities | 36,893 | 41,010 | |||
Dunebridge revolving credit facility | 0 | ||||
Secured notes payable | 357,607 | 329,632 | |||
Level 2 of fair value hierarchy [member] | |||||
Financial assets designated as measured at fair value through profit or loss [Abstract] | |||||
Derivative assets | 775 | 185 | |||
Financial assets designated as not measured at fair value [Abstract] | |||||
Cash | 0 | 0 | |||
Amounts receivable | 0 | 0 | |||
Restricted cash | 0 | 0 | |||
Designated financial liabilities at not fair value through profit or loss [Abstract] | |||||
Accounts payable and accrued liabilities | 0 | 0 | |||
Dunebridge revolving credit facility | 31,813 | ||||
Secured notes payable | 0 | 0 | |||
Level 3 of fair value hierarchy [member] | |||||
Financial assets designated as measured at fair value through profit or loss [Abstract] | |||||
Derivative assets | 0 | 0 | |||
Financial assets designated as not measured at fair value [Abstract] | |||||
Cash | 0 | 0 | |||
Amounts receivable | 0 | 0 | |||
Restricted cash | 0 | 0 | |||
Designated financial liabilities at not fair value through profit or loss [Abstract] | |||||
Accounts payable and accrued liabilities | 0 | 0 | |||
Dunebridge revolving credit facility | 0 | ||||
Secured notes payable | $ 0 | $ 0 |
Financial Instruments - Contrac
Financial Instruments - Contractual Maturities of Significant Financial Liabilities and Capital Commitments Including Contractual Obligations (Detail) - CAD ($) $ in Thousands | Dec. 31, 2024 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of detailed information about financial instruments [line items] | |||
Notes payable - Principal | $ 379,034 | ||
Notes payable - Interest | 30,323 | ||
Total of financial liabilities, capital commitments including obligations | 443,748 | ||
Gahcho Kue Diamond Mine [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Mine commitments | 4,391 | ||
Decommissioning fund | 30,000 | ||
Less than 1 Year | |||
Disclosure of detailed information about financial instruments [line items] | |||
Mine commitments | 10,000 | $ 15,000 | |
Notes payable - Principal | 379,034 | ||
Notes payable - Interest | 30,323 | ||
Total of financial liabilities, capital commitments including obligations | 423,748 | ||
Less than 1 Year | Gahcho Kue Diamond Mine [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Mine commitments | 4,391 | ||
Decommissioning fund | 10,000 | ||
1 to 3 Years | |||
Disclosure of detailed information about financial instruments [line items] | |||
Notes payable - Principal | 0 | ||
Notes payable - Interest | 0 | ||
Total of financial liabilities, capital commitments including obligations | 20,000 | ||
1 to 3 Years | Gahcho Kue Diamond Mine [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Mine commitments | 0 | ||
Decommissioning fund | 20,000 | ||
4 to 5 Years | |||
Disclosure of detailed information about financial instruments [line items] | |||
Mine commitments | $ 10,000 | ||
Notes payable - Principal | 0 | ||
Notes payable - Interest | 0 | ||
Total of financial liabilities, capital commitments including obligations | 0 | ||
4 to 5 Years | Gahcho Kue Diamond Mine [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Mine commitments | 0 | ||
Decommissioning fund | 0 | ||
After 5 Years | |||
Disclosure of detailed information about financial instruments [line items] | |||
Notes payable - Principal | 0 | ||
Notes payable - Interest | 0 | ||
Total of financial liabilities, capital commitments including obligations | 0 | ||
After 5 Years | Gahcho Kue Diamond Mine [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Mine commitments | 0 | ||
Decommissioning fund | $ 0 |
Financial Instruments - Disclos
Financial Instruments - Disclosure of Net Assets and Liabilities (Detail) $ in Thousands, $ in Millions | Dec. 31, 2021CAD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019CAD ($) |
Disclosure of detailed information about financial instruments [line items] | |||||
Cash | $ 25,000 | $ 35,152 | $ 34,751 | ||
Derivative assets | 162 | ||||
Accounts payable and accrued liabilities | (36,893) | (41,010) | |||
Secured notes payable | (375,517) | $ (299.9) | (374,706) | $ (299.9) | |
Currency denominated by Canadian dollar [Member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Cash | 11,968 | 33,703 | |||
Derivative assets | 731 | 0 | |||
Accounts payable and accrued liabilities | (1,949) | (2,538) | |||
Dunebridge revolving credit facility | 0 | (31,813) | |||
Secured notes payable | (379,034) | (381,674) | |||
Total | $ (368,284) | $ (382,322) |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) $ in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2021CAD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Disclosure Of Financial Instruments [Line Items] | ||||
Trade and other current receivables | $ 877 | $ 797 | ||
Secured bank loans received | $ 375,517 | 374,706 | $ 299.9 | $ 299.9 |
Percentage of entity's revenue | 49.00% | |||
Credit risk [member] | ||||
Disclosure Of Financial Instruments [Line Items] | ||||
Trade and other current receivables | $ 877 | 797 | ||
10% Change [Member] | ||||
Disclosure Of Financial Instruments [Line Items] | ||||
Increase (decrease) in net income | 36,800 | 38,200 | ||
First lien revolving credit facility [Member] | ||||
Disclosure Of Financial Instruments [Line Items] | ||||
Secured bank loans received | 379,000 | 381,700 | ||
First lien revolving credit facility [Member] | Interest rate risk [member] | ||||
Disclosure Of Financial Instruments [Line Items] | ||||
Secured bank loans received | 299,900 | 299,900 | ||
Dunebridge RCF [Member] | ||||
Disclosure Of Financial Instruments [Line Items] | ||||
Secured bank loans received | 50,000 | |||
Dunebridge RCF [Member] | Interest rate risk [member] | ||||
Disclosure Of Financial Instruments [Line Items] | ||||
Secured bank loans received | 25,000 | 0 | ||
Harmonized sales tax refunds [Member] | ||||
Disclosure Of Financial Instruments [Line Items] | ||||
Trade and other current receivables | $ 722 | $ 604 |
Related Parties - Disclosure of
Related Parties - Disclosure of Related Parties Outstanding Balances (Detail) - CAD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Gk mine [Member] | |||
Related party [Line Items] | |||
Amounts payable, related party transactions | [1] | $ 2,732 | $ 2,789 |
Key management personnel of entity or parent [member] | |||
Related party [Line Items] | |||
Amounts payable, related party transactions | 67 | 158 | |
De Beers Canada [Member] | |||
Related party [Line Items] | |||
Amounts payable, related party transactions | $ 99 | 550 | |
Dunebridge Worldwide Limited | |||
Related party [Line Items] | |||
Amounts payable, related party transactions | [2] | $ 31,813 | |
[1] | included in accounts payable and accrued liabilities | ||
[2] | does not include $318 of unamortized deferred transaction costs and issuance discount |
Related Parties - Disclosure _2
Related Parties - Disclosure of Related Parties Outstanding Balances (Parenthetical) (Detail) $ in Thousands | Dec. 31, 2021CAD ($) |
Disclosure Of Related Party [Abstract] | |
Unamortized deferred transaction costs and issuance discount | $ 318 |
Related Parties - Disclosure _3
Related Parties - Disclosure of Related Parties Transactions (Detail) - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
The total of the transactions: | |||
Remuneration to key management personnel | $ 3,329 | $ 1,875 | |
Finance costs incurred | [1] | 1,479 | 1,674 |
International investment and underwriting [Member] | |||
The total of the transactions: | |||
Settlement of liabilities by entity on behalf of related party, related party transactions | 120 | 23 | |
De beers canada inc [Member] | |||
The total of the transactions: | |||
Diamonds sold | 10,338 | 12,610 | |
Assets purchased from De Beers Canada Inc. | 0 | 42 | |
Gk mine [Member] | |||
The total of the transactions: | |||
Management fee charged by the Operator | 4,763 | 4,368 | |
De Beers Canada [Member] | |||
The total of the transactions: | |||
Diamonds purchased from De Beers Canada Inc. | 14,990 | 11,523 | |
Finance costs incurred | 135 | 198 | |
Dunebridge Worldwide Limited | |||
The total of the transactions: | |||
Upside Revenue From Sale of Goods Related Party Transactions | 10,399 | 0 | |
Diamonds sold | 0 | 66,671 | |
Finance costs incurred | $ 5,882 | $ 852 | |
[1] | Included in other finance costs for the year ended December 31, 2021 is $59 (2020 - $90) related to interest on lease liabilities. |
Related Parties - Key Managemen
Related Parties - Key Management Personnel of Remuneration Expense of Directors and Other Members (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Related Party [Abstract] | ||
Consulting fees, payroll, director fees, bonus and other short-term benefits | $ 2,982 | $ 1,357 |
Share-based payments | 467 | 541 |
Key management personnel compensation | $ 3,449 | $ 1,898 |
Related Parties - Additional In
Related Parties - Additional Information (Detail) $ in Thousands | Sep. 29, 2021USD ($) | Sep. 29, 2021CAD ($) | Sep. 24, 2021USD ($) | Jul. 31, 2021USD ($) | Jun. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2021CAD ($) | Dec. 31, 2021USD ($)Carats | Dec. 31, 2021CAD ($)Carats | Dec. 31, 2020CAD ($) | Dec. 31, 2024CAD ($) | Dec. 31, 2023CAD ($) | Dec. 31, 2022CAD ($) | Mar. 28, 2022CAD ($) | Dec. 31, 2021CAD ($) | May 12, 2021USD ($) |
Related party [Line Items] | ||||||||||||||||
Proportion of ownership interests held by non-controlling interests | 49.00% | 49.00% | ||||||||||||||
Long-term deposits | $ 44,100 | $ 44,100 | ||||||||||||||
Percentage of security deposit fee | 3.00% | 3.00% | ||||||||||||||
Total Decommissioning Fund | $ 55,000 | |||||||||||||||
Payment towards decommissioning fund | $ 10,000 | 15,000 | ||||||||||||||
Notional amount | $ 379,034,000 | |||||||||||||||
Not later than one year [member] | ||||||||||||||||
Related party [Line Items] | ||||||||||||||||
Commitments Period | $ 15,000 | 10,000 | ||||||||||||||
Later Than Two Years [member] | ||||||||||||||||
Related party [Line Items] | ||||||||||||||||
Commitments Period | $ 10,000 | |||||||||||||||
Later Than Three Years [member] | ||||||||||||||||
Related party [Line Items] | ||||||||||||||||
Commitments Period | $ 10,000 | |||||||||||||||
Later than four years and not later than five years [member] | ||||||||||||||||
Related party [Line Items] | ||||||||||||||||
Commitments Period | $ 10,000 | |||||||||||||||
Gahcho Kue Diamond Mine [Member] | ||||||||||||||||
Related party [Line Items] | ||||||||||||||||
Proportion of ownership interests held by non-controlling interests | 49.00% | 49.00% | ||||||||||||||
Commitments Period | 4,391 | |||||||||||||||
Gahcho Kue Diamond Mine [Member] | Not later than one year [member] | ||||||||||||||||
Related party [Line Items] | ||||||||||||||||
Commitments Period | 4,391 | |||||||||||||||
Gahcho Kue Diamond Mine [Member] | Later than four years and not later than five years [member] | ||||||||||||||||
Related party [Line Items] | ||||||||||||||||
Commitments Period | $ 0 | |||||||||||||||
De Beers [member] | ||||||||||||||||
Related party [Line Items] | ||||||||||||||||
Percentage of security deposit fee | 3.00% | |||||||||||||||
De Beers [member] | Previously stated [member] | ||||||||||||||||
Related party [Line Items] | ||||||||||||||||
Percentage of security deposit fee | 0.30% | |||||||||||||||
Dunebridge [member] | ||||||||||||||||
Related party [Line Items] | ||||||||||||||||
Percenatge of profit share in future sales | 10.00% | 10.00% | ||||||||||||||
Upside proceeds realized and received as per agreement | $ 10,399 | |||||||||||||||
Line of credit facility | $ 50,000 | |||||||||||||||
Dunebridge [member] | Dune Bridge Revolving Credit Facility [member] | ||||||||||||||||
Related party [Line Items] | ||||||||||||||||
Line of credit maximum borrowing capacity | $ 25,000,000 | $ 25,000,000 | ||||||||||||||
Borrowing interest rate | 5.00% | 5.00% | ||||||||||||||
Financing fees percentage | 1.00% | |||||||||||||||
Borrowings extended maturity | March 31, 2022 | |||||||||||||||
Percentage of upfront extension fee | 2.00% | |||||||||||||||
Payment of upfront extension fee | $ 500 | |||||||||||||||
Partial repayment of credit facility | $ 5,000,000 | |||||||||||||||
Repayment of borrowings | $ 20,000 | |||||||||||||||
Dunebridge [member] | Dune Bridge Revolving Credit Facility [member] | Subsequent Event [Member] | ||||||||||||||||
Related party [Line Items] | ||||||||||||||||
line of credit facility current borrowing capacity | $ 5,000 | |||||||||||||||
Dunebridge [member] | Dunebridge Term Facility [Member] | ||||||||||||||||
Related party [Line Items] | ||||||||||||||||
Borrowings | $ 22,000,000 | 33,000,000 | ||||||||||||||
Notional amount | $ 31,000,000 | |||||||||||||||
Repayment of term facility | 9,000,000 | |||||||||||||||
Repayment of cash sweep amount | $ 8,500,000 | $ 2,000,000 | ||||||||||||||
Dunebridge [member] | Year One [member] | ||||||||||||||||
Related party [Line Items] | ||||||||||||||||
Fees amount as a percentage of revenue to related party | 10.00% | 10.00% | ||||||||||||||
Dunebridge [member] | Year Two [member] | ||||||||||||||||
Related party [Line Items] | ||||||||||||||||
Fees amount as a percentage of revenue to related party | 10.00% | 10.00% | ||||||||||||||
Dunebridge [member] | Year Three [member] | ||||||||||||||||
Related party [Line Items] | ||||||||||||||||
Fees amount as a percentage of revenue to related party | 10.00% | 10.00% | ||||||||||||||
Dunebridge [member] | Run of Mine Diamonds [member] | ||||||||||||||||
Related party [Line Items] | ||||||||||||||||
Estimated amount of sales to related party | $ 50,000 | |||||||||||||||
Estimated quantity of sales to related party | Carats | 10.8 | 10.8 | ||||||||||||||
Revenue from transaction with related party | $ 49,400 | |||||||||||||||
Dunebridge [member] | Diamond Sales [Member] | ||||||||||||||||
Related party [Line Items] | ||||||||||||||||
Revenue from transaction with related party | $ 308,723 | |||||||||||||||
Dunebridge [member] | Before Shareholders Approval [member] | Run of Mine Diamonds [member] | ||||||||||||||||
Related party [Line Items] | ||||||||||||||||
Estimated amount of sales to related party | $ 50,000,000 | |||||||||||||||
Dunebridge [member] | After Shareholders Approval [member] | Run of Mine Diamonds [member] | ||||||||||||||||
Related party [Line Items] | ||||||||||||||||
Estimated amount of sales to related party | 100,000,000 | |||||||||||||||
Dunebridge [member] | Resale of Original Diamonds to Third Parties [Member] | ||||||||||||||||
Related party [Line Items] | ||||||||||||||||
Revenue from transaction with related party | $ 49,400,000 |
Income Taxes - Disclosure of In
Income Taxes - Disclosure of Income Taxes Rate Reconciliation (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Income Tax [Abstract] | ||
Loss before income taxes | $ 296,887 | $ (263,429) |
Applicable tax rate | 26.50% | 26.50% |
Tax expense calculated using statutory rates | $ 78,676 | $ (69,809) |
Expenses not deductible (earnings not taxable) | 926 | (1,185) |
Change in tax benefits not recognized | (79,602) | 70,994 |
Deferred mining taxes | 20,720 | 0 |
Deferred income tax expenses | $ 20,720 | $ 0 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) - CAD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax liabilities | ||
Inventory | $ (183) | $ (449) |
Property, plant & equipment | (82,773) | (30) |
Derivative assets and debt | (874) | (519) |
Deferred tax asset | ||
Total deferred tax liabilities | (20,720) | |
Net deferred taxes | (20,720) | 0 |
Unused tax losses [member] | ||
Deferred tax asset | ||
Total deferred tax liabilities | (83,830) | (998) |
Non-capital loss carryforwards [member] | Unused tax losses [member] | ||
Deferred tax asset | ||
Deferred tax asset-tax losses | $ 63,110 | $ 998 |
Income Taxes - Unrecognized Def
Income Taxes - Unrecognized Deferred Tax Assets (Detail) - CAD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Income Tax [Line Items] | ||
Deductible temporary differences for which no deferred tax asset is recognised | $ 249,210 | $ 528,540 |
Property, plant and equipment [member] | ||
Income Tax [Line Items] | ||
Deductible temporary differences for which no deferred tax asset is recognised | 0 | 104,795 |
Decommissioning and restoration liability [member] | ||
Income Tax [Line Items] | ||
Deductible temporary differences for which no deferred tax asset is recognised | 94,839 | 71,923 |
Income tax benefit of deferred mining taxes [Member] | ||
Income Tax [Line Items] | ||
Deductible temporary differences for which no deferred tax asset is recognised | 20,720 | 0 |
Capital losses [member] | ||
Income Tax [Line Items] | ||
Deductible temporary differences for which no deferred tax asset is recognised | 942 | 426 |
Non-capital losses, expiring 2034 to 2040 [member] | ||
Income Tax [Line Items] | ||
Deductible temporary differences for which no deferred tax asset is recognised | 132,659 | 351,218 |
Share issuance cost [member] | ||
Income Tax [Line Items] | ||
Deductible temporary differences for which no deferred tax asset is recognised | $ 50 | $ 178 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax [Line Items] | ||
Applicable tax rate | 26.50% | 26.50% |
Unrecognized deductible temporary differences | $ 249,210 | $ 528,540 |
Northwest Territories Mining Royalty [Member] | ||
Income Tax [Line Items] | ||
Unrecognized deductible temporary differences | $ 90,400 | $ 277,800 |
Capital Management - Summary of
Capital Management - Summary of Company Capital (Detail) $ in Thousands, $ in Millions | Dec. 31, 2021CAD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2020USD ($) |
Disclosure of objectives, policies and processes for managing capital [abstract] | ||||
Secured notes payable | $ 375,517 | $ 299.9 | $ 374,706 | $ 299.9 |
Dunebridge revolving credit facility | 0 | 31,813 | ||
Share capital | 631,717 | 631,498 | ||
Share-based payments reserve | 7,469 | 6,820 | ||
Deficit | (289,785) | (565,952) | ||
Shareholder equity and other equity interest | $ 724,918 | $ 478,885 |
Segmented Reporting - GK Mine O
Segmented Reporting - GK Mine Operations and KNP Resource Developed Exploration and Evaluation Programs (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of operating segments [line items] | ||
Sales | $ 308,723 | $ 226,993 |
Cost of sales: | ||
Production costs | 140,099 | 153,679 |
Cost of acquired diamonds | 15,723 | 11,088 |
Depreciation and depletion | 39,173 | 63,711 |
Loss from mine operations | (1,485) | |
Earnings from mine operations | 113,728 | (1,485) |
Impairment reversal on property, plant and equipment | (240,593) | |
Impairment loss on property, plant and equipment | (240,593) | 217,366 |
Exploration and evaluation expenses | 5,547 | 3,807 |
Selling, general and administrative expenses | 13,858 | 13,153 |
Operating income (loss) | 334,916 | (235,811) |
Net finance expenses | (40,373) | (39,997) |
Other income | 143 | |
Derivative gains (losses) | (67) | 127 |
Foreign exchange gains (losses) | 2,268 | 12,252 |
Net income (loss) before taxes | 296,887 | (263,429) |
Total assets | 877,497 | 595,329 |
Total liabilities | 526,762 | 521,629 |
Gk Mine [Member] | ||
Disclosure of operating segments [line items] | ||
Sales | 308,723 | 226,993 |
Cost of sales: | ||
Production costs | 140,099 | 153,679 |
Cost of acquired diamonds | 15,723 | 11,088 |
Depreciation and depletion | 39,173 | 63,711 |
Loss from mine operations | (1,485) | |
Earnings from mine operations | 113,728 | |
Impairment reversal on property, plant and equipment | (240,593) | |
Impairment loss on property, plant and equipment | 217,366 | |
Exploration and evaluation expenses | 604 | 1,076 |
Selling, general and administrative expenses | 13,816 | 13,110 |
Operating income (loss) | 339,901 | (233,037) |
Net finance expenses | (40,367) | (39,920) |
Other income | 0 | |
Derivative gains (losses) | (67) | 127 |
Foreign exchange gains (losses) | 2,268 | 12,252 |
Net income (loss) before taxes | 301,735 | (260,578) |
Total assets | 705,465 | 424,272 |
Total liabilities | 523,397 | 519,074 |
KNP [Member] | ||
Disclosure of operating segments [line items] | ||
Sales | 0 | 0 |
Cost of sales: | ||
Production costs | 0 | 0 |
Cost of acquired diamonds | 0 | 0 |
Depreciation and depletion | 0 | 0 |
Loss from mine operations | 0 | |
Earnings from mine operations | 0 | |
Impairment reversal on property, plant and equipment | 0 | |
Exploration and evaluation expenses | 4,943 | 2,731 |
Selling, general and administrative expenses | 42 | 43 |
Operating income (loss) | (4,985) | (2,774) |
Net finance expenses | (6) | (77) |
Other income | 143 | |
Derivative gains (losses) | 0 | 0 |
Foreign exchange gains (losses) | 0 | 0 |
Net income (loss) before taxes | (4,848) | (2,851) |
Total assets | 172,032 | 171,057 |
Total liabilities | $ 3,365 | $ 2,555 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Jan. 01, 2022 | |
Disclosure of non-adjusting events after reporting period [line items] | ||
Notional amount | $ 379,034 | |
Event After Reporting Period [Member] | ||
Disclosure of non-adjusting events after reporting period [line items] | ||
Number of warrants issued shares | 41 | |
Warrants exercise price | $ 0.60975 | |
Aggregate exercise price of warrants | $ 25,000 | |
Warrants expiration date | Dec. 15, 2027 | |
New Notes [Member] | Event After Reporting Period [Member] | ||
Disclosure of non-adjusting events after reporting period [line items] | ||
Notional amount | $ 50,000 | |
Borrowings, interest rate | 8.00% | |
Borrowings, Frequency of payment | semi-annually | |
Borrowings, maturity | December 15, 2027 | |
Second Lien Notes [Member] | Event After Reporting Period [Member] | ||
Disclosure of non-adjusting events after reporting period [line items] | ||
Borrowings, interest rate | 2.00% |