Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Feb. 25, 2014 | Jun. 30, 2013 |
Document and Entity Information | ' | ' | ' |
Entity Registrant Name | 'Golden Minerals Co | ' | ' |
Entity Central Index Key | '0001011509 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Public Float | ' | ' | $46.20 |
Entity Common Stock, Shares Outstanding | ' | 43,530,833 | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets | ' | ' |
Cash and cash equivalents | $19,146 | $44,406 |
Investments (Note 5) | ' | 242 |
Trade receivables | 25 | 1,291 |
Inventories (Note 7) | 449 | 3,388 |
Value added tax receivable (Note 8) | 1,765 | 4,422 |
Prepaid expenses and other assets (Note 6) | 1,091 | 1,044 |
Total current assets | 22,476 | 54,793 |
Property, plant and equipment, net (Note 9) | 32,375 | 280,905 |
Assets held for sale (Note 9) | ' | 575 |
Goodwill (Note 3) | ' | 11,666 |
Prepaid expenses and other assets (Note 6) | 30 | 163 |
Total assets | 54,881 | 348,102 |
Current liabilities | ' | ' |
Accounts payable and other accrued liabilities (Note 10) | 1,365 | 6,232 |
Other current liabilities (Note 12) | 4,405 | 7,074 |
Total current liabilities | 5,770 | 13,306 |
Asset retirement and reclamation liabilities (Note 11) | 2,602 | 2,259 |
Deferred tax liability (Note 14) | ' | 47,072 |
Other long term liabilities (Note 12) | 53 | 193 |
Total liabilities | 8,425 | 62,830 |
Commitments and contingencies (Note 18) | ' | ' |
Equity (Note 15) | ' | ' |
Common stock, $.01 par value, 100,000,000 shares authorized, 43,530,833 and 43,265,833 shares issued and outstanding, respectively | 435 | 433 |
Additional paid in capital | 494,647 | 493,175 |
Accumulated deficit | -448,626 | -208,246 |
Accumulated other comprehensive income loss | ' | -90 |
Shareholders' equity | 46,456 | 285,272 |
Total liabilities and equity | $54,881 | $348,102 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
CONSOLIDATED BALANCE SHEETS | ' | ' |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 43,530,833 | 43,265,833 |
Common stock, shares outstanding | 43,530,833 | 43,265,833 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Revenue: | ' | ' |
Sale of metals (Note 16) | $10,680 | $26,086 |
Costs and expenses: | ' | ' |
Cost of metals sold (exclusive of depreciation shown below) (Note 16) | -17,534 | -33,369 |
Exploration expense | -4,575 | -7,009 |
El Quevar project expense | -2,628 | -5,115 |
Velardena project expense | -3,052 | -7,912 |
Velardena shutdown and care & maintenance costs | -6,374 | ' |
Administrative expense | -5,610 | -7,063 |
Stock based compensation | -1,555 | -2,588 |
Reclamation expense | -184 | -226 |
Impairment of long lived assets (Note 2) | -243,985 | ' |
Impairment of goodwill (Note 3) | -11,666 | -58,489 |
Other operating income, net | 3,526 | 2,487 |
Depreciation, depletion and amortization | -6,927 | -10,012 |
Total costs and expenses | -300,564 | -129,296 |
Loss from operations | -289,884 | -103,210 |
Other income and (expenses): | ' | ' |
Interest and other income | 444 | 2,543 |
Royalty income | ' | 373 |
Interest and other expense | ' | -257 |
(Loss) gain on foreign currency | -626 | 512 |
Other total income and (expenses) | -182 | 3,171 |
Loss from operations before income taxes | -290,066 | -100,039 |
Income taxes benefit (Note 14) | 49,686 | 8,014 |
Net loss | -240,380 | -92,025 |
Other comprehensive gain: | ' | ' |
Unrealized gain on securities, net of tax | 90 | 32 |
Comprehensive loss | ($240,290) | ($91,993) |
Net loss per common share - basic and diluted | ' | ' |
Loss (in dollars per share) | ($5.61) | ($2.45) |
Weighted average Common Stock outstanding - basic and diluted (in shares) | 42,838,735 | 37,522,871 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (USD $) | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive income (loss) |
In Thousands, except Share data, unless otherwise specified | |||||
Balance at Dec. 31, 2011 | $337,768 | $355 | $453,756 | ($116,221) | ($122) |
Balance (in shares) at Dec. 31, 2011 | ' | 35,690,035 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' |
Stock compensation accrued | 2,589 | 9 | 2,580 | ' | ' |
Stock compensation accrued (in shares) | ' | 712,500 | ' | ' | ' |
Registered offering stock units, net | 29,433 | 55 | 29,378 | ' | ' |
Registered offering stock units, net (in shares) | ' | 5,497,504 | ' | ' | ' |
Private placements stock units, net | 7,475 | 14 | 7,461 | ' | ' |
Private placements stock units, net (in shares) | ' | 1,365,794 | ' | ' | ' |
Unrealized gain on marketable equity securities, net of tax | 32 | ' | ' | ' | 32 |
Realized gain on marketable equity securities, net of tax | 32 | ' | ' | ' | ' |
Net loss | -92,025 | ' | ' | -92,025 | ' |
Balance at Dec. 31, 2012 | 285,272 | 433 | 493,175 | -208,246 | -90 |
Balance (in shares) at Dec. 31, 2012 | ' | 43,265,833 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' |
Stock compensation accrued | 1,474 | 2 | 1,472 | ' | ' |
Stock compensation accrued (in shares) | ' | 265,000 | ' | ' | ' |
Realized gain on marketable equity securities, net of tax | 90 | ' | ' | ' | 90 |
Net loss | -240,380 | ' | ' | -240,380 | ' |
Balance at Dec. 31, 2013 | $46,456 | $435 | $494,647 | ($448,626) | ' |
Balance (in shares) at Dec. 31, 2013 | ' | 43,530,833 | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | ' | ' |
Net cash used in operating activities (Note 17) | ($27,878) | ($36,641) |
Cash flows from (used in) investing activities: | ' | ' |
Sale of available-for-sale investments | 198 | 49 |
Proceeds from sale of assets | 4,217 | 5,061 |
Additions to property, plant and equipment | -1,797 | -9,620 |
Net cash used in investing activities | 2,618 | -4,510 |
Cash flows from financing activities: | ' | ' |
Proceeds from issuance of common stock, net of issue costs | ' | 36,908 |
Net cash provided by financing activities | ' | 36,908 |
Net increase (decrease) in cash and cash equivalents | -25,260 | -4,243 |
Cash and cash equivalents, beginning of period | 44,406 | 48,649 |
Cash and cash equivalents, end of period | $19,146 | $44,406 |
Basis_of_Preparation_of_Financ
Basis of Preparation of Financial Statements | 12 Months Ended |
Dec. 31, 2013 | |
Basis of Preparation of Financial Statements | ' |
Basis of Preparation of Financial Statements | ' |
1. Basis of Preparation of Financial Statements | |
Golden Minerals Company (the “Company”), a Delaware corporation, completed a business combination (the “Transaction”) on September 2, 2011 with ECU Silver Mining Inc. (“ECU”). The primary asset acquired in the Transaction was the 100% interest in the Velardeña and Chicago precious metals mining properties in Mexico (the “Velardeña Properties”). The Company is primarily focused on efforts to create a new mining and processing plan for its Velardeña Properties, the advancement of its El Quevar advanced exploration property in Argentina, and the exploration of properties in Argentina and Mexico. The Company is also reviewing strategic opportunities, focusing primarily on development or operating properties in North America, including Mexico. | |
The Company is considered an exploration stage company under the criteria set forth by the Security and Exchange Commission (“SEC”) as the Company has not yet demonstrated the existence of proven or probable reserves, as defined by the SEC Industry Guide 7, at the Velardeña Properties, or any of the Company’s other properties. As a result, and in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for exploration stage companies, all expenditures for exploration and evaluation of the Company’s properties are expensed as incurred. As such the Company’s financial statements may not be comparable to the financial statements of mining companies that do have proven and probable reserves. Such companies would typically capitalize certain development costs including infrastructure development and mining activities to access the ore. The capitalized costs would be amortized on a units-of-production basis as reserves are mined. The amortized costs are typically allocated to inventory and eventually to cost of sales as the inventories are sold. As the Company does not have proven and probable reserves, substantially all expenditures at the Company’s Velardeña Properties for mine construction activity, as well as costs associated with the mill facilities, and for items that do not have a readily identifiable market value apart from the mineralized material, have been expensed as incurred. Such costs are charged to cost of metals sold or project expense during the period depending on the nature of the costs. Certain of the costs may be reflected in inventories prior to the sale of the product. The term “mineralized material” as used herein, although permissible under SEC Industry Guide 7, does not indicate “reserves” by SEC standards. The Company cannot be certain that any deposits at the Velardeña Properties or any other exploration property will ever be confirmed or converted into SEC Industry Guide 7 compliant “reserves”. | |
Effective June 19, 2013 the Company suspended mining and processing at its Velardeña Properties in order to conserve the asset until the Company is able to create mining and processing plans that, at then current prices for silver and gold, indicate a sustainable cash margin from extraction of minerals. The Company has placed the mine and processing plants on a care and maintenance program to enable a restart when mining and processing plans and metals prices support a cash positive outlook for the property. Approximately 420 positions at the Velardeña Properties were eliminated at the beginning of July 2013, with an additional approximately 20 positions eliminated in October 2013 following the completion of certain suspension activities primarily related to the idling of plant and mobile equipment. The Company currently plans to retain a core group of approximately 40 employees to facilitate a restart of mining and processing and to maintain and safeguard the longer term value of the asset. The number of employees may be further reduced in 2014 as the Company continues to evaluate restart plans. | |
Upon emergence from Chapter 11 reorganization on March 24, 2009, the Company became the successor to Apex Silver Mines Limited (the “Predecessor”) for purposes of reporting under the U.S. federal securities laws. Upon emergence from the Chapter 11 reorganization and as required by U.S. GAAP and per the guidance of Accounting Standards Codification (“ASC”) 805, “Business Combinations” (“ASC 805”), and ASC 852, “Reorganizations” (“ASC 852”), the Company applied fresh start accounting and adjusted all of the acquired assets and assumed liabilities to their respective fair values based on the Company’s reorganization value. | |
The financial statements have been prepared on a going concern basis under which an entity is considered to be able to realize its assets and satisfy its liabilities in the normal course of business. However, the continuing operations of the Company are dependent upon its ability to secure sufficient funding and to generate future profitable operations. The underlying value and recoverability of the amounts shown as mineral properties in the consolidated balance sheet are dependent on the ability of the Company to generate positive cash flow from operations and to continue to fund exploration and development activities that would lead to profitable mining activities or proceeds from the disposition of the mineral properties. There can be no assurance that the Company will be successful in generating future profitable operations or securing additional funding in the future on terms acceptable to the Company or at all. |
Impairment_of_Long_Lived_Asset
Impairment of Long Lived Assets | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Impairment of Long Lived Assets | ' | ||||||||||||||||
Impairment of Long Lived Assets | ' | ||||||||||||||||
2. Impairment of Long Lived Assets | |||||||||||||||||
Velardeña Properties Asset Group | |||||||||||||||||
The Velardeña Properties asset group consists of the property, plant, and equipment and working capital related to the Velardeña Properties. Per the guidance of ASC 360, “Property, Plant and Equipment” (“ASC 360”), the Company assesses the recoverability of its long-lived assets, including property, plant and equipment, at least annually, or whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Prices for silver and gold decreased approximately 34% and 26% respectively from March 31, 2013 to June 30, 2013. The significant decrease in metals prices and the shutdown of mining and processing at the Velardeña Properties at the end of the second quarter (see Note 1) were events that required an assessment of the recoverability of the Velardeña Properties asset group at June 30, 2013. Per the guidance of ASC 360, recoverability of an asset group is not achieved if the projected undiscounted, pre-tax cash flows related to the asset group are less than its carrying amount. In its analysis of projected cash flows from the Velardeña Properties, the Company determined that the Velardeña Properties asset group was impaired. As a result, at June 30, 2013 the Company wrote the asset group down to its fair value and recorded an impairment charge of $229.4 million related to the property, plant and equipment. In addition, the Company recorded an additional impairment charge of approximately $5.9 related to the Velardeña Properties asset group property, plant and equipment at December 31, 2013 as discussed below. | |||||||||||||||||
The Company also recomputed deferred tax assets and liabilities associated with the Velardeña Properties asset group and determined, based on the new carrying value of the Velardeña Properties asset group, that no net deferred tax liabilities exist. Therefore, the net deferred tax liabilities calculated prior to the impairment of approximately $45.0 million were written off and the Company recorded an income tax benefit equal to that amount for the quarter ended June 30, 2013 (see Note 14). | |||||||||||||||||
In arriving at a fair value for the Velardeña mineral deposit and exploration properties at June 30, 2013, the Company used a market valuation approach, which the Company deemed reasonable under the circumstances, that considered a combination of: (1) recently published market data reflecting an average in the ground mineral resource value for a representative group of junior silver mining companies primarily located in Mexico and South America, and (2) recent mineral resource acquisition and development cost data provided by a third party mining engineering consultant. From this data the Company inferred an enterprise value for the Velardeña Properties of approximately $0.39 per ounce of estimated equivalent silver ounces contained in the Velardeña Properties deposit. From the derived enterprise value the Company subtracted the fair value assigned to tangible assets and working capital to arrive at a residual value for the mineral and exploration properties. Using this approach, the Company determined that the Velardeña Property and exploration properties had a fair value of approximately $21.2 million at June 30, 2013 resulting in an impairment charge of $215.1 million. | |||||||||||||||||
At December 31, 2013 the Company reviewed the remaining carrying value of the Velardeña Properties mineral deposit and determined that the published market data reflecting an average in the ground mineral resource value had decreased in value since the June 30, 2013 analysis. From the published data at December 31, 2013 the Company inferred an enterprise value for the Velardeña Properties of approximately $0.29 per ounce of estimated equivalent silver ounces contained in the Velardeña Properties deposit. From the derived enterprise value the Company subtracted the fair value assigned to tangible assets and working capital to arrive at a residual value for the mineral resource. Using this market valuation approach, the Company determined that the Velardeña mineral resource had a fair value of approximately $15.4 million at December 31, 2013 resulting in an additional impairment charge of approximately $5.9 million. | |||||||||||||||||
The tangible assets at the Velardeña Properties were separately analyzed by a third party valuation firm using available market data to determine a fair value based on the net realizable value that could be received in a sale to a third party. The market data was derived by researching the secondary equipment market on sales and/or offers for sale of similar assets. The tangible assets were determined to have a fair value of approximately $9.6 million, resulting in an impairment charge of approximately $14.3 million at June 30, 2013. | |||||||||||||||||
The market valuation approach used in the determination of fair value falls within level 3 of the fair value hierarchy per ASC 820, “Fair Value Measurements and Disclosures” (“ASC 820”) (see Note 13) and relies upon assumptions related to the condition and location of the Velardeña Properties asset group in comparison to other corroborated observable market data. | |||||||||||||||||
The following table details the components of the impairment of the Velardeña Properties Asset Group: | |||||||||||||||||
Net Book Value | Net Book Value | Net Book Value | |||||||||||||||
Prior to | Jun. 30, 2013 | After | Dec. 31, 2013 | After | |||||||||||||
Impairment at | Impairment | Impairment at | Impairment | Impairment at | |||||||||||||
Jun. 30, 2013 | Charges | Jun. 30, 2013 | Charges | Dec. 31, 2013 | |||||||||||||
(in thousands) | |||||||||||||||||
Mineral properties (1) | $ | 232,805 | $ | 211,608 | $ | 21,197 | $ | 5,916 | $ | 15,384 | |||||||
Exploration properties | 3,472 | 3,472 | — | — | — | ||||||||||||
Tangible assets (2) | 23,928 | 14,330 | 9,598 | — | 8,485 | ||||||||||||
$ | 260,205 | $ | 229,410 | $ | 30,795 | $ | 5,916 | $ | 23,869 | ||||||||
(1) The December 31, 2013 mineral properties net book value reflects a $0.1 million adjustment recorded during the fourth quarter of 2013 in addition to the impairment charge. | |||||||||||||||||
(2) The December 31, 2013 tangible assets net book value reflects depreciation and asset disposals recorded during the third and fourth quarters of 2013. | |||||||||||||||||
San Diego Property Asset Group | |||||||||||||||||
The Company has a 50% ownership interest in the San Diego exploration property, which is located approximately 10 kilometers from the Velardeña Properties. The property interest was acquired as part of the ECU merger transaction, which occurred on September 2, 2011, and the property was assigned a value of $9.3 million as part of the purchase accounting associated with the transaction. Because of its close proximity to the Velardeña Properties, the San Diego property could become a source of additional ore for the Velardeña Properties if developed in the future. The San Diego property is included in the Velardeña Properties reporting segment but is separate from the Velardeña Properties asset group. Per the guidance of ASC 360, the Company assesses the recoverability of its property, plant and equipment at least annually, or whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. As discussed above relating to the impairment of long lived assets associated with the Velardeña Properties asset group, the significant decrease in metals prices and shutdown of mining and processing at the Velardeña Properties were events that required the assessment of the recoverability of the carrying amounts of the San Diego property. | |||||||||||||||||
Because the San Diego property is in the exploration stage a market valuation approach was used to determine the fair value for the property. Because of the close proximity and geological similarities of the San Diego property to the Velardeña Properties mineral deposit and exploration properties, and given that both the San Diego property and the Velardeña Properties mineral deposit and exploration properties were originally recorded at fair value at the same time as part of the ECU merger transaction, the Company determined that the impairment of the Velardeña mineral deposit and exploration properties provided a reasonable estimate for the decline in fair value of the San Diego property. As such, at June 30, 2013 the Company determined that the fair value of the San Diego property was $0.8 million, resulting in an impairment charge of $8.5 million, as shown in the table below. | |||||||||||||||||
As shown in the table below the Company recorded an additional impairment of approximately $0.2 million at December 31, 2013. As discussed above for the Velardeña Properties asset group, the additional impairment is the result of the published market data reflecting an average in the ground mineral resource value that had decreased in value since the June 30, 2013 analysis. | |||||||||||||||||
The market valuation approach used in the determination of fair value falls within level 3 of the fair value hierarchy per ASC 820 (see Note 13) and relies upon assumptions related to the condition and location of the San Diego property in comparison to other corroborated observable market data. | |||||||||||||||||
The following table details the components of the impairment of the San Diego Property Asset Group: | |||||||||||||||||
Net Book Value | Net Book Value | Net Book Value | |||||||||||||||
Prior to | Jun. 30, 2013 | After | Dec. 31, 2013 | After | |||||||||||||
Impairment at | Impairment | Impairment at | Impairment | Impairment at | |||||||||||||
Jun. 30, 2013 | Charges | Jun. 30, 2013 | Charges | Dec. 31, 2013 | |||||||||||||
(in thousands) | |||||||||||||||||
Exploration properties | $ | 9,260 | $ | 8,428 | $ | 832 | $ | 231 | $ | 601 | |||||||
$ | 9,260 | $ | 8,428 | $ | 832 | $ | 231 | $ | 601 | ||||||||
Impairment_of_Goodwill
Impairment of Goodwill | 12 Months Ended |
Dec. 31, 2013 | |
Impairment of Goodwill | ' |
Impairment of Goodwill | ' |
3. Impairment of Goodwill | |
Goodwill is all related to the acquisition of the Velardeña Properties as part of the ECU merger transaction and is primarily the result of the requirement to record a deferred tax liability for the difference between the fair value and the tax basis of both the assets acquired and liabilities assumed. Per the guidance of ASC 350, “Intangible — Goodwill and Other” (“ASC 350”), the Company assesses the recoverability of its goodwill at least annually, or whenever events or changes in circumstances indicate that the carrying value of the goodwill may be impaired. | |
2013 Impairment | |
The carrying value of goodwill, related to the Mexico ECU reporting unit, has been fully written off at December 31, 2013 compared to $11.7 million at December 31, 2012. As discussed in Note 2, regarding the impairment of long lived assets related to the Velardeña Properties asset group, the significant decrease in metals prices and shutdown of mining and processing at the Velardeña Properties during 2013 were events that also required an assessment of whether goodwill had been impaired. The Company recorded an $11.2 million impairment charge at June 30, 2013 and further reduced the carrying value of goodwill from $0.5 million to zero at December 31, 2013. | |
The Company used an analysis of discounted after-tax cash flows to calculate the implied goodwill of the Velardeña Properties asset group following the guidance of ASC 805. Several mining, processing and shutdown scenarios were combined to arrive at a single projection of cash flows using a weighted average approach, which assigned probabilities to the occurrence of each individual scenario. The cash flow analysis used in the impairment assessment for goodwill related to the Velardeña Properties falls within level 3 of the fair value hierarchy per ASC 820 (see Note 13) and includes various inputs including the weighted average cost of capital of 21%, projected future metals prices, and assumptions from the Company’s Velardeña Properties mining and processing plans. The most significant unobservable factors are certain assumptions used in the Velardeña Properties mining and processing plans and include: 1) ore grades consistent with the Company’s current and previously reported estimates of mineralized material, 2) plant throughput consistent with projected mining and processing plans under the various mining and processing scenarios, 3) the Company’s projections of operating costs, and 4) the weighting of mining and processing scenarios. The weighted average cost of capital and forecast of future metals prices were obtained from a third party valuation consultant that derived the data from corroborated observable market data. Metals prices used in the cash flow analysis for silver ranged from $23.80 to $18.06 per ounce and for gold ranged from $1,440 to $1,198 per ounce. | |
2012 Impairment | |
The carrying value of goodwill, related to the Mexico ECU reporting unit, was $11.7 million at December 31, 2012 compared to $70.2 million at December 31, 2011. During the third and fourth quarters of 2012, the Company’s forecast of future gold and silver prices had decreased by approximately 20% and certain assumptions related to ore processing throughput rates and other aspects of the long term mining and processing plan for the Velardeña Properties had changed. As a result of these changes, and per the guidance of ASC 350, the Company completed an impairment analysis of the goodwill carrying value. The analysis indicated that goodwill was impaired and the Company recorded impairment charges of $57.2 million during the third quarter 2012 and $1.3 million during the fourth quarter 2012 for a total of $58.5 million for the year. | |
The impairment amounts recorded during 2012 were calculated by applying the income approach to determine the fair value of the net assets of the reporting unit per the guidance of ASC 820. The Company utilized discounted cash flows and an excess earnings model to determine the fair value of the entity and the implied goodwill. This model falls within level 3 of the fair value hierarchy per ASC 820 (see Note 13) and includes various inputs including the weighted average cost of capital, future metals prices, and assumptions from the Company’s Velardeña Properties mining and processing plan extended over a twenty five year period. The most significant unobservable factors are certain assumptions used in the Velardeña Properties mining and processing plan and include: 1) ore grades consistent with the Company’s current and previously reported estimates of mineralized material, 2) plant throughput consistent with a plan to ramp up to 1,150 tonnes per day by 2015, and 3) the Company’s projections of mining and processing costs. The weighted average cost of capital of 21% and forecast of future metals prices were obtained from a third party valuation consultant that derived the data from corroborated observable market data. Metals prices used in the analysis for silver ranged from $34.78 to $23.77 per ounce and for gold from $1,866 to $1,394 per ounce. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2013 | |
Summary of Significant Accounting Policies | ' |
Summary of Significant Accounting Policies | ' |
4. Summary of Significant Accounting Policies | |
The Company’s consolidated financial statements have been prepared in accordance with U.S. GAAP. The preparation of the Company’s consolidated financial statements require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and related disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The more significant areas requiring the use of management estimates and assumptions relate to mineral reserves and related future metals prices that are the basis for future cash flow estimates utilized in impairment calculations and units-of-production depreciation, depletion and amortization calculations; environmental reclamation and closure obligations; estimates of recoverable metals in stockpiles; valuation allowances for deferred tax assets and the fair value of financial instruments. The Company based its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Actual results may differ significantly from these estimates under different assumptions or conditions. | |
The policies adopted, considered by management to be significant, are summarized as follows: | |
a. Basis of consolidation | |
All of the Company’s consolidated subsidiaries are 100% owned and as such the Company does not recognize a noncontrolling interest in any of its subsidiaries. All intercompany transactions and balances have been eliminated at consolidation. | |
b. Translation of foreign currencies | |
Substantially all expenditures and sales are made in U.S. dollars. Accordingly, the Company and its subsidiaries use the U.S. dollar as their functional and reporting currency. | |
c. Cash and cash equivalents | |
The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. | |
d. Investments | |
Available for Sale — Available for sale securities are recorded at fair value, with unrealized gains or losses recorded as a component of equity, unless the value of the security is considered other than temporarily impaired. Realized gains and losses and non-temporary impairments in value are recorded in the statement of operations. | |
e. Inventories | |
Metals inventories at the Velardeña Properties consisted of marketable products including doré, concentrates and precipitates. Metals inventory were carried at the lower of average cost or net realizable value. Net realizable value represents the estimated future sales price of the product based on spot and futures metals prices through estimated sale and settlement dates, less the estimated costs to complete processing and bring the product to sale. Costs included in metals inventory included direct and indirect costs of mining and processing, including depreciation. At December 31, 2012 the Company had written down its metals inventory to net realizable value with excess costs included in cost of sales and depreciation. The Company did not have any metals inventories at December 31, 2013. | |
Materials and supplies inventories are valued at the lower of average cost or net realizable value. Cost includes applicable taxes and freight. The Company routinely counts and evaluates its material and supplies to determine the existence of any obsolete stock that is subject to impairment. | |
f. Mining properties, exploration and development costs | |
The Company expenses general prospecting costs and the costs of acquiring and exploring unevaluated mineral properties. When a mineral property is determined to have proven and probable reserves, subsequent development costs are capitalized to mineral properties. For acquired mineral properties with proven and probable reserves, the Company capitalizes acquisition costs and subsequent development costs. When mineral properties are developed and operations commence, capitalized costs are charged to operations using the units-of-production method over proven and probable reserves. Upon abandonment or sale of a mineral property, all capitalized costs relating to the specific property are written off in the period abandoned or sold and a gain or loss is recognized in the accompanying Consolidated Statements of Operations and Comprehensive Income. | |
As discussed in Note 1, the Company is considered an exploration stage company under the criteria set forth by the SEC since it has not yet demonstrated the existence of proven or probable reserves at the Velardeña Properties, or any of the Company’s other properties. As such, the Company expenses costs as incurred related to the extraction of mineralized material at its Velardeña Properties. The Company established a cost basis for the mineralized material at the Velardeña Properties as a result of purchase accounting for the Company’s business combination transaction with ECU in September 2011, the transaction pursuant to which the Company acquired the Velardeña Properties. Mineral properties acquired in the ECU merger were recorded at estimated fair market value based on valuations performed with the assistance of an independent appraisal firm and a minerals engineering company. Although the Company has not demonstrated the existence of proven and probable reserves, and the Company has not completed a pre-feasibility economic assessment, the Company had established the existence of mineralized material that was used in assigning value to mineral properties for purchase accounting purposes. The subsequent extraction of this mineralized material has provided a reasonable basis for the calculation of units-of-production depreciation for the cost basis in the mineral properties. | |
As a requirement of fresh start accounting, certain exploration properties were recorded at their fair market value upon emergence from Chapter 11 reorganization on March 24, 2009. On a quarterly basis the Company evaluates its exploration properties to determine if they meet the Company’s minimum requirements for continued evaluation. The rights to the properties that do not meet the minimum requirements are relinquished and the carrying values, if any are written off and reflected in other operating gains and losses, net on the accompanying Consolidated Statements of Operations and Comprehensive Loss. Costs of exploration subsequent to the application of fresh start accounting have and will continue to be expensed. | |
g. Property, plant and equipment and long lived asset impairment | |
Buildings are depreciated using the straight—line method over the estimated useful lives of 30 to 40 years or the life of the mine whichever is shorter. Mining equipment and machinery excluding the plant are depreciated using the straight-line method over useful lives of three to eight years or the lease period, whichever is shorter. Mineral properties with proven and probable reserves and the plant are depreciated using units of production based on estimated mine reserves. Other furniture and equipment are depreciated using the straight-line method over estimated useful lives of three to five years. Depreciation on plant and equipment used in the construction of an asset is capitalized to the constructed asset. | |
As discussed above, the Company does not have any properties with proven or probable reserves including the the Velardeña Properties. | |
Property, plant and equipment are recorded at cost and per the guidance of ASC 360 the Company assesses the recoverability of its property, plant and equipment, including goodwill, at least annually or whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. If the sum of estimated future net cash flows on an undiscounted basis is less than the carrying amount of the related asset, impairment is considered to exist. The related impairment loss is measured by comparing estimated future net cash flows on a discounted basis to the carrying amount of the asset (see Notes 2 and 3). | |
ASC 350 requires that an entity assign its goodwill to reporting units and test each reporting unit’s goodwill for impairment at least annually or whenever events or changes in circumstances indicate the goodwill may be impaired. All of the goodwill recorded on the Company’s books is related to the Velardeña Properties acquired in the Transaction, which is considered by the Company to be a separate reporting unit (see Note 3). | |
h. Asset Retirement Obligations | |
The Company records asset retirement obligations (“ARO”) in accordance with ASC 410, “Asset Retirement and Environmental Obligations” (“ASC 410”), which establishes a uniform methodology for accounting for estimated reclamation and abandonment costs. According to ASC 410, the fair value of an ARO is recognized in the period in which it is incurred if a reasonable estimate of fair value can be made. An offsetting asset retirement cost (“ARC”) is capitalized as part of the carrying value of the assets with which it is associated, and depreciated over the useful life of the asset (see Note 11). | |
The Company prepares estimates of the timing and amount of expected cash flows when an ARO is incurred. The fair value of the ARO is measured by discounting the expected cash flows using a discount rate that reflects the credit adjusted risk-free rate of interest. The Company records the fair value of an ARO when it is incurred and changes in the fair value of the ARO are recorded as an adjustment to the corresponding ARC. The ARO is adjusted to reflect the passage of time (accretion cost) calculated by applying the discount rate implicit in the initial fair value measurement to the beginning-of-period carrying amount of the ARO. The Company records accretion costs to expense as incurred. | |
i. Revenue Recognition | |
Following the guidance of ASC 605, “Revenue Recognition” (“ASC 605”), the Company recognizes “Revenue from the sale of metals” at the earliest point that both risk of loss and title transfer to the purchaser pursuant to the terms of the Company’s sales agreements. Prices for doré, concentrate and precipitate sales are fixed according to terms included in the sales agreements, which generally call for final pricing based on average metals prices observed over specific periods that range from 10 days prior to the transfer of title to the month following the month the product is received by the purchaser. Revenue is recorded based on estimated metals contained in the product from assay data and using either actual or projected prices for the pricing period specified in the sales agreement. Upon final settlement revenue may be adjusted for changes in actual contained metals and final metals prices. | |
j. Stock compensation | |
Stock based compensation costs are recognized per the guidance of ASC 718, “Compensation — Stock Compensation” (“ASC 718”), using a graded vesting attribution method whereby costs are recognized over the requisite service period for each separately vesting portion of the award (see Note 15). Stock grants are valued at their grant date at fair value which in the case of options requires the use of the Black-Scholes option pricing model. Per ASC 718 the grants may be classified as equity grants or liability grants depending on the terms of the grant. | |
k. Net income (loss) per Common Stock/Ordinary Share | |
Basic income (loss) per share is computed by dividing net income (loss) available to holders of the Company’s Common Stock by the weighted average number of Common Stock/Ordinary Shares outstanding for the period. Diluted income (loss) per share reflects the potential dilution that would occur if securities or other contracts to issue Common Stock or Ordinary Shares were exercised or converted into Common Stock or Ordinary Shares. | |
At December 31, 2013 and 2012, all potentially dilutive shares were excluded from the computation of diluted earnings per share because to include them would have been anti-dilutive. | |
l. Comprehensive Income (Loss) | |
Comprehensive income (loss) is defined as all changes in equity (deficit), exclusive of transactions with stockholders, such as capital investments. Comprehensive income (loss) includes net income (loss) and changes in certain assets and liabilities that are reported directly in equity. For the years ended December 31, 2013 and 2012 Comprehensive Income (Loss) included the change in the market value of available for sale securities and is reported on the Consolidated Statements of Operations and Comprehensive Loss. | |
m. Income Taxes | |
The Company accounts for income taxes in accordance with the provisions of ASC 740, “Income Taxes” (“ASC 740”), on a tax jurisdictional basis. The Company files United States and certain other foreign country income tax returns, and pays taxes reasonably determined to be due. The tax rules and regulations in these countries are highly complex and subject to interpretation. The Company’s income tax returns are subject to examination by the relevant taxing authorities and in connection with such examinations, disputes can arise with the taxing authorities over the interpretation or application of certain tax rules within the country involved. In accordance with ASC 740, the Company identifies and evaluates uncertain tax positions, and recognizes the impact of uncertain tax positions for which there is a less than more-likely-than-not probability of the position being upheld when reviewed by the relevant taxing authority. Such positions are deemed to be unrecognized tax benefits and a corresponding liability is established on the balance sheet. | |
The Company classifies income tax related interest and penalties as income tax expense. | |
n. Recently Adopted Standards | |
In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2013-02, “Reporting of Amounts Reclassified out of Accumulated Other Comprehensive Income”. The purpose of this accounting standard update is to improve the reporting of reclassifications out of accumulated other comprehensive income and is effective for public entities prospectively for reporting periods beginning after December 15, 2012. Substantially all of the information that this update requires already is required to be disclosed elsewhere in the financial statements under U.S. GAAP. However, the new requirement regarding presenting information about amounts reclassified out of accumulated other comprehensive income and their corresponding effect on net income will present, in one place, information about significant amounts reclassified and, in some cases, cross-references to related footnote disclosures. The Company had only immaterial amounts classified out of accumulated other comprehensive income at December 31, 2012 and December 31, 2013. The adoption of this standard did not have an impact on the Company’s financial position or results of operations and is not expected to have an impact in the future. | |
o. Recently Issued Pronouncements | |
In July 2013, the FASB issued ASU No. 2013-11 “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists” (“ASU 2013-11”), which requires an unrecognized tax benefit to be presented as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward that the entity intends to use and is available for settlement at the reporting date. ASU 2013-11 will be effective for the Company in the first quarter of 2014. The adoption of ASU 2013-11 is not expected to have a material impact on the Company’s consolidated financial position or results of operations. |
Investments
Investments | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Investments | ' | |||||||||||
Investments | ' | |||||||||||
5. Investments | ||||||||||||
The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Short-term investments include investments with maturities greater than 3 months, but not exceeding 12 months. Long-term investments include investments with maturities greater than 12 months. | ||||||||||||
The Company determines the appropriate classification of its investments in debt and equity securities at the time of purchase and re-evaluates those classifications at each balance sheet date. Debt securities are classified as held to maturity when the Company has the intent and ability to hold the securities to maturity. Held to maturity debt securities are stated at amortized cost and include government agency and corporate obligations. Available for sale investments are marked to market at the end of each reporting period with changes in value recorded as a component of other comprehensive income (loss). If declines in value are deemed other than temporary, a charge is made to net income (loss) for the period. The Company invests only in government and corporate securities rated “investment grade” or better. | ||||||||||||
The following table summarizes the Company’s investments at December 31, 2012: | ||||||||||||
December 31, 2012 | Cost | Estimated | Carrying | |||||||||
Fair Value | Value | |||||||||||
Investments: | ||||||||||||
Short-term: | ||||||||||||
Warrant to purchase common stock | $ | 124 | $ | — | $ | — | ||||||
Available for sale common stock | $ | 207 | $ | 242 | $ | 242 | ||||||
Total available for sale | 331 | 242 | 242 | |||||||||
Total short term | $ | 331 | $ | 242 | $ | 242 | ||||||
The Company did not hold any investments at December 31, 2013. The available for sale common stock at December 31, 2012 consisted of 3.0 million shares of a junior mining company received during the third quarter 2012 related to the 2011 sale of the Company’s Paca Pulacayo property in Bolivia. During the first quarter 2013 all of the shares were sold for net proceeds of approximately $0.2 million resulting in a nominal loss recorded to interest and other expense. | ||||||||||||
At December 31, 2012, the Company held warrants to purchase common stock of a junior mining company which were acquired in a transaction related to the Company’s exploration activities. The warrants expired on January 6, 2013 and had a nominal carrying value of less than one thousand dollars at December 31, 2012. | ||||||||||||
Quoted market prices at December 31, 2012 were used to determine the fair values of the above investments. See Note 13 for further discussion on the fair value measurement techniques used by the Company to value the above investments. |
Prepaid_Expenses_and_Other_Ass
Prepaid Expenses and Other Assets | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Prepaid Expenses and Other Assets | ' | |||||||
Prepaid Expenses and Other Assets | ' | |||||||
6. Prepaid Expenses and Other Assets | ||||||||
Prepaid expenses and other assets consist of the following: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Prepaid insurance | $ | 687 | $ | 611 | ||||
Prepaid contractor fees and vendor advances | 193 | 148 | ||||||
Taxes receivable | 96 | — | ||||||
Recoupable deposits and other | 115 | 285 | ||||||
$ | 1,091 | $ | 1,044 | |||||
December 31, 2013 | ||||||||
The prepaid contractor fees and vendor advances consist of advance payments made to contractors and suppliers primarily at the Company’s Velardeña Properties in Mexico. | ||||||||
In addition, included in non-current assets at December 31, 2013 is approximately $30,000 of prepaid insurance on which amortization will be recognized through 2015. | ||||||||
December 31, 2012 | ||||||||
The prepaid contractor fees and vendor advances consist of advance payments made to equipment manufacturers, contractors and suppliers primarily at the Company’s Velardeña Properties in Mexico. | ||||||||
In addition, included in non-current assets at December 31, 2012 is approximately $163,000 of prepaid insurance on which amortization will be recognized through 2015. |
Inventories
Inventories | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Inventories | ' | |||||||
Inventories | ' | |||||||
7. Inventories | ||||||||
Inventories at the Velardeña Properties were as follows: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Metals inventory | $ | — | $ | 2,076 | ||||
In-process inventory | — | 228 | ||||||
Material and supplies | 449 | 1,084 | ||||||
$ | 449 | $ | 3,388 | |||||
The Company had no metals or in process inventories at December 31, 2013 as the result of the suspension of mining and processing at the Velardeña Properties (see Note 1). | ||||||||
At December 31, 2012, the Company had written down its metals inventory to net realizable value including a charge to cost of metals sold of approximately $2.7 million and a charge to depreciation expense of approximately $0.8 million. |
Value_added_tax_recoverable
Value added tax recoverable | 12 Months Ended |
Dec. 31, 2013 | |
Value added tax recoverable | ' |
Value added tax recoverable | ' |
8. Value added tax recoverable | |
The Company has recorded value added tax (“VAT”) paid in Mexico and related to the Velardeña Properties as a recoverable asset. Mexico law allows for certain VAT payments to be recovered through ongoing applications for refunds. The Company expects that the current amounts will be recovered within a one year period. | |
The Company has also paid VAT in Mexico as well as other countries, primarily related to exploration projects, which has been charged to expense as incurred because of the uncertainty of recoverability. |
Property_Plant_and_Equipment_a
Property, Plant and Equipment and Assets Held for Sale | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Property, Plant and Equipment and Assets Held for Sale | ' | ||||||||||
Property, Plant and Equipment and Assets Held for Sale | ' | ||||||||||
9. Property, Plant and Equipment and Assets Held for Sale | |||||||||||
Property, plant and equipment, net | |||||||||||
The components of property, plant, and equipment, net were as follows: | |||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
(in thousands) | |||||||||||
Mineral properties | $ | 22,397 | $ | 239,200 | |||||||
Exploration properties | 2,993 | 15,685 | |||||||||
Royalty properties | 200 | 200 | |||||||||
Buildings | 2,349 | 4,808 | |||||||||
Mining equipment and machinery | 19,441 | 29,185 | |||||||||
Other furniture and equipment | 1,054 | 2,204 | |||||||||
Asset retirement cost | 2,087 | 1,883 | |||||||||
50,521 | 293,165 | ||||||||||
Less: Accumulated depreciation & amortization | (18,146 | ) | (12,260 | ) | |||||||
32,375 | 280,905 | ||||||||||
During the year ended December 31, 2013 the Company relinquished the rights to two exploration properties in Mexico that did not meet the Company’s minimum requirements for continued evaluation. The properties had a carrying value of approximately $0.2 million which is included in Loss from operations. The Company did not relinquish the rights to any exploration properties during the year ended December 31, 2012 that had a carrying value. | |||||||||||
During 2013 the Company reduced the carrying value of the Velardeña Properties property, plant and equipment by $235.3 million and the carrying value of the San Diego mineral property by $8.6 million and recorded $244.0 million of impairment charges on the accompanying Consolidated Statement of Operations and Comprehensive Loss (see Note 2). The table below sets forth the detail of the impairment charges recorded to the Velardeña Properties property, plant and equipment and the San Diego mineral property: | |||||||||||
Impairment Charges | |||||||||||
Velardeña | |||||||||||
Properties | San Diego | Total | |||||||||
Asset Group | Asset Group | Impairment | |||||||||
Mineral properties | $ | 217,524 | $ | — | $ | 217,524 | |||||
Exploration properties | 3,472 | 8,659 | 12,131 | ||||||||
Royalty properties | — | — | — | ||||||||
Buildings | 3,036 | — | 3,036 | ||||||||
Mining equipment and machinery | 10,394 | — | 10,394 | ||||||||
Other furniture and equipment | 900 | — | 900 | ||||||||
Asset retirement cost | — | — | |||||||||
235,326 | 8,659 | 243,985 | |||||||||
The carrying value after the impairment represents the fair value of the assets as discussed in Note 2. | |||||||||||
During the second quarter 2012, the Company completed the sale of its 1% net smelter return royalty interest in the Platosa property to Excellon Resources Inc. for $2.4 million and recorded a $1.8 million gain on the sale which is reflected in Interest and other income on the accompanying Statements of Operations and Comprehensive Loss. The remaining royalty property is a property located in Mexico on which the Company has retained net smelter return royalty rights. There has been no royalty production from this property to date. | |||||||||||
During the fourth quarter 2012, the Company sold exploration properties in Mexico, Peru and Bolivia for total proceeds of $2.5 million and recorded gains of $2.2 million which is reflected in Other operating income on the accompanying Statements of Operations and Comprehensive Loss. | |||||||||||
The ARC is all related to the Company’s Velardeña Properties in Mexico and was adjusted during the second quarter 2012 based on the completion of a mine closure plan during the period as discussed in detail in Note 11. | |||||||||||
Assets Held for Sale | |||||||||||
During the fourth quarter of 2012, the Company obtained approval from its Board of Directors to sell most of its exploration concessions in Peru. The $0.6 million carrying value of the properties was reflected in Assets held for sale in the accompanying Consolidated Balance Sheets at December 31, 2012. During February 2013, the Company entered into an agreement to sell the exploration concessions in Peru to Compañía de Minas Buenaventura S.A.A. (“Buenaventura”) for $3.5 million. The Company recorded a gain, net of carrying value, on the sale of the properties to Buenaventura of $2.9 million, included in Other operating income in the Consolidated Statement of Operations and Comprehensive Loss. |
Accounts_Payable_and_Other_Acc
Accounts Payable and Other Accrued Liabilities | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Accounts Payable and Other Accrued Liabilities | ' | |||||||
Accounts Payable and Other Accrued Liabilities | ' | |||||||
10. Accounts Payable and Other Accrued Liabilities | ||||||||
The Company’s accounts payable and other accrued liabilities consist of the following: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Accounts payable and accruals | $ | 717 | $ | 4,098 | ||||
Accrued employee compensation and benefits | 648 | 2,134 | ||||||
$ | 1,365 | $ | 6,232 | |||||
December 31, 2013 | ||||||||
Accounts payable and accruals at December 31, 2013 are primarily related to amounts due to contractors and suppliers in the amounts of $0.4 million, $0.2 million and $0.1 million related to the Company’s Velardeña Properties, corporate administrative activities and exploration, respectively. In the case of the Velardeña Properties, amounts due also include value added tax payable that is not an offset to the value added tax receivable. | ||||||||
Accrued employee compensation and benefits at December 31, 2013 consist of $0.1 million of accrued vacation payable and $0.5 million related to withholding taxes and benefits payable, of which $0.3 million is related to activities at the Velardeña Properties. | ||||||||
December 31, 2012 | ||||||||
Accounts payable and accruals at December 31, 2012 are primarily related to amounts due to contractors and suppliers in the amounts of $3.0 million, $0.7 million and $0.4 million related to the Company’s Velardeña Properties, corporate administrative activities and exploration, respectively. In the case of the Velardeña Properties, amounts due also include value added tax payable that is not an offset to the value added tax receivable. | ||||||||
Accrued employee compensation and benefits at December 31, 2012 consist of $0.1 million of accrued vacation payable and $2.0 million related to withholding taxes and benefits payable, of which $1.7 million is related to activities at the Velardeña Properties. | ||||||||
Key Employee Long-Term Incentive Plan | ||||||||
On December 13, 2013, the Board of Directors of the Company approved and the Company adopted the 2013 Key Employee Long-Term Incentive Plan (the “KELTIP”), which became effective immediately. The KELTIP provides for the grant of units (“KELTIP Units”) to certain officers and key employees of the Company, which units will, once vested, entitle such officers and employees to receive an amount, in cash or in Company common stock issued pursuant to a stockholder approved plan, measured generally by the price of the Company’s common stock on the settlement date. Units are not an actual equity interest in the Company and are solely unfunded and unsecured obligations of the Company that are not transferable and do not provide the holder with any stockholder rights. Payment of the settlement amount of vested KELTIP Units is deferred generally until the earlier of a change of control of the Company or the date the grantee ceases to serve as an officer or employee of the Company. | ||||||||
On December 13, 2013 the Company granted an officer of the Company 172,500 KELTIP Units of which 75,833 KELTIP Units were vested as of the Grant Date and 48,333 KELTIP Units vest on the first anniversary of the grant date and the final 48,334 KELTIP Units vest on the second anniversary of the grant date. The KELTIP Units were granted to the officer per the terms of a Stock Surrender and Unit Grant Agreement dated December 13, 2013, whereby the officer surrendered to the Company 172,500 previously granted restricted shares, 27,500 of which had vested (see Note 15) and was granted 172,500 KELTIP Units. At December 31, 2013 the Company had recorded a liability of $81,000 related to the KELTIP Units grant which is included in Accrued employee compensation and benefits in the table above. The KELTIP Units were valued at fair value as determined by the closing price of the Company’s common stock on the grant date per the guidance of ASC 718. |
Asset_Retirement_and_Reclamati
Asset Retirement and Reclamation Liabilities | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Asset Retirement and Reclamation Liabilities | ' | |||||||
Asset Retirement and Reclamation Liabilities | ' | |||||||
11. Asset Retirement and Reclamation Liabilities | ||||||||
The Company recorded an approximately $3.5 million ARO and offsetting ARC related to the Velardeña Properties upon the acquisition of ECU. The Company, with the help of a third party engineering firm, estimated the ARO and ARC based on the engineering firm’s experience with mining properties of similar size and scope as that of the Velardeña Properties. Shortly after the completion of the ECU acquisition the Company retained the services of another engineering firm to complete a detailed closure plan for the Velardeña Properties. That plan was completed during the second quarter 2012 and indicated an ARO and ARC of approximately $1.9 million. The ARO and ARC amounts were adjusted accordingly as set forth in changes in estimates, and other in the table below. | ||||||||
The Company will continue to accrue additional estimated ARO amounts based on an asset retirement plan as activities requiring future reclamation and remediation occur. The Company recognized approximately $0.2 million accretion expense for each of the years 2013 and 2012. The Company also recognized approximately $0.2 million of amortization expense related to the ARC for each of the years 2013 and 2012. The following table summarizes activity in the Velardeña Properties ARO: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Beginning balance | $ | 2,080 | $ | 3,577 | ||||
Changes in estimates, and other | 203 | (1,656 | ) | |||||
Accretion expense | 184 | 159 | ||||||
Ending balance | $ | 2,467 | $ | 2,080 | ||||
The reclamation liability includes approximately $0.1 million and $0.2 million at December 31, 2013 and 2012, respectively, related to activities at our El Quevar project in Argentina. |
Other_Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2013 | |
Other Liabilities | ' |
Other Liabilities | ' |
12. Other Liabilities | |
The Company recorded Other current liabilities of $4.4 million at December 31, 2013 and $7.1 million at December 31, 2012. The December 31, 2013 and 2012 amounts include a loss contingency of $4.4 million and $4.6 million, respectively. The 2012 amount also included an unrecognized tax benefit of $2.5 million. The loss contingency relates to foreign withholding taxes that the government could assert are owed by the Company, acting as withholding agent, on certain interest payments made to a third party. The unrecognized tax benefit was related to foreign withholding taxes that the government could assert were owed on intercompany balances between subsidiaries prior to the capitalization of such balances (see Note 14). The foreign withholding tax statute of limitations related to the loss contingency will expire in 2015. The amounts include estimated interest, penalties and other adjustments. | |
The Company had recorded other long term liabilities of $0.1 million and $0.2 million for the years ended December 31, 2013 and 2012, respectively. Both amounts are related to a deferred leasehold liability which represents the recording of rent expense on a straight-line basis while actual rent payments are escalating over the course of the lease and where certain leasehold improvement costs, reimbursable by the landlord, are being amortized, on a straight-line basis, against rent expense over the life of the lease. The amounts are all related to the corporate headquarters office lease which was renegotiated and extended during the first quarter 2014 (see Note 18). |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Fair Value Measurements | ' | |||||||||||||
Fair Value Measurements | ' | |||||||||||||
13. Fair Value Measurements | ||||||||||||||
Financial assets and liabilities and nonfinancial assets and liabilities are measured at fair value on a recurring (annual) basis under a framework of a fair value hierarchy which prioritizes the inputs into valuation techniques used to measure fair value into three broad levels. This hierarchy gives the highest priority to quoted prices (unadjusted) in active markets and the lowest priority to unobservable inputs. Further, financial assets and liabilities should be classified by level in their entirety based upon the lowest level of input that was significant to the fair value measurement. The three levels of the fair value hierarchy per ASC 820 are as follows: | ||||||||||||||
Level 1: Unadjusted quoted market prices in active markets for identical assets or liabilities that are accessible at the measurement date. | ||||||||||||||
Level 2: Quoted prices in inactive markets for identical assets or liabilities, quoted prices for similar assets or liabilities in active markets, or other observable inputs either directly related to the asset or liability or derived principally from corroborated observable market data. | ||||||||||||||
Level 3: Unobservable inputs due to the fact that there is little or no market activity. This entails using assumptions in models which estimate what market participants would use in pricing the asset or liability. | ||||||||||||||
The Company has consistently applied the valuation techniques discussed in Notes 2 and 3 in all periods presented. | ||||||||||||||
The following table summarizes the Company’s financial assets at fair value at December 31, 2013, and 2012 by respective level of the fair value hierarchy: | ||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||
(in thousands) | ||||||||||||||
At December 31, 2013 | ||||||||||||||
Assets: | ||||||||||||||
Cash equivalents | $ | 19,146 | $ | — | $ | — | $ | 19,146 | ||||||
Trade accounts receivable | 25 | — | — | 25 | ||||||||||
$ | 19,171 | $ | — | $ | — | $ | 19,171 | |||||||
At December 31, 2012 | ||||||||||||||
Assets: | ||||||||||||||
Cash equivalents | $ | 44,406 | $ | — | $ | — | $ | 44,406 | ||||||
Short-term available for sale securities | 242 | — | — | 242 | ||||||||||
Trade accounts receivable | 1,291 | — | — | 1,291 | ||||||||||
$ | 45,939 | $ | — | $ | — | $ | 45,939 | |||||||
The Company’s cash equivalents, comprised principally of U.S. treasury securities, are classified within level 1 of the fair value hierarchy. | ||||||||||||||
The Company’s short-term available for sale securities are classified within level 1 of the fair value hierarchy and are comprised of common stock, which has been valued using quoted prices in active markets. | ||||||||||||||
The Company’s trade accounts receivable is classified within level 1 of the fair value hierarchy and is related to the sale of metals at our Velardeña Properties and is valued at published metals prices per the terms of the refining and smelting agreements. | ||||||||||||||
The Company did not have any level 2 or level 3 financial assets at December 31, 2013 or 2012. | ||||||||||||||
Non-recurring Fair Value Measurements | ||||||||||||||
The following table summarizes the Company’s non-recurring fair value measurements at December 31, 2013, and 2012 by respective level of the fair value hierarchy: | ||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||
(in thousands) | ||||||||||||||
At December 31, 2013 | ||||||||||||||
Assets: | ||||||||||||||
Mineral properties | $ | — | $ | — | $ | 22,397 | $ | 22,397 | ||||||
Exploration properties | — | — | 2,993 | 2,993 | ||||||||||
Goodwill | — | — | — | — | ||||||||||
$ | — | $ | — | $ | 25,390 | $ | 25,390 | |||||||
At December 31, 2012 | ||||||||||||||
Assets: | ||||||||||||||
Mineral properties | $ | — | $ | — | $ | 239,200 | $ | 239,200 | ||||||
Exploration properties | — | — | 15,685 | 15,685 | ||||||||||
Goodwill | — | — | 11,666 | 11,666 | ||||||||||
$ | — | $ | — | $ | 266,551 | $ | 266,551 | |||||||
The Company assesses the fair value of its long lived assets, including goodwill, at least annually or more frequently if circumstances indicate a change in the fair value has occurred. The valuation policies are approved by the Chief Financial Officer who reviews and approves the inputs used in the fair value calculations and the changes in fair value measurements from period to period for reasonableness. Fair value measurements are discussed with the Company’s Chief Executive Officer, as deemed appropriate. | ||||||||||||||
To determine the fair value of mineral properties and exploration properties the Company uses a market valuation approach which falls within level 3 of the fair value hierarchy. The market valuation approach relies upon assumptions related to the condition and location of the Properties in comparison to other corroborated observable market data for similar properties. In arriving at a fair value for the Velardeña mineral deposit and exploration properties and the San Diego exploration property the Company considered recently published market data reflecting an average in the ground mineral resource value for a representative group of junior silver mining companies primarily located in Mexico and South America. See Note 2 for details related to the unobservable inputs. | ||||||||||||||
The Company uses an after tax discounted cash flow model to determined the implied fair value of the goodwill related to the Company’s Velardeña Properties. The goodwill model falls within level 3 of the fair value hierarchy and includes various inputs including the weighted average cost of capital, future metals prices, and assumptions from the Company’s Velardeña Properties mining and processing plan. The most significant unobservable factors are certain assumptions used in the Velardeña Properties mining and processing plan and include: 1) ore grades consistent with the Company’s current and previously reported estimates of mineralized material, 2) plant throughput, and 3) the Company’s projections of mining and processing costs. See Note 3 for details related to the unobservable inputs. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Income Taxes | ' | |||||||
Income Taxes | ' | |||||||
14. Income Taxes | ||||||||
The Company accounts for income taxes in accordance with the provisions of ASC 740, “Income Taxes” (“ASC 740”), on a tax jurisdictional basis. | ||||||||
The provision for income taxes consists of the following: | ||||||||
For the Year Ended December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
CURRENT TAXES: | ||||||||
United States | $ | — | $ | — | ||||
Other Countries | (2,450 | ) | (330 | ) | ||||
$ | (2,450 | ) | $ | (330 | ) | |||
DEFERRED TAXES: | ||||||||
United States | $ | — | $ | — | ||||
Other Countries | (47,236 | ) | (7,684 | ) | ||||
$ | (47,236 | ) | $ | (7,684 | ) | |||
Total Income Tax Provision (Benefit) | $ | (49,686 | ) | $ | (8,014 | ) | ||
Income (loss) from operations before income taxes by country consists of the following: | ||||||||
For the Year Ended December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
United States | $ | (8,632 | ) | $ | (12,107 | ) | ||
Other Countries | (281,434 | ) | (87,932 | ) | ||||
$ | (290,066 | ) | $ | (100,039 | ) | |||
In 2013 the Company recorded a $47.2 million deferred tax benefit related primarily to the impairment of long lived assets of the Velardeña Properties. In 2013 the Company also recorded a current tax benefit of $2.5 million related to the effective settlement of an unrecognized tax benefit in Mexico. In 2012 the Company recorded a $7.7 million deferred tax benefit related primarily to Mexico net operating losses and a current tax benefit of $0.3 million due to the lapse of statute of limitations of an unrecognized tax benefit in Mexico. | ||||||||
A reconciliation of the provision for income taxes computed at the statutory rate to the provision for income taxes as shown in the consolidated statements of operations and comprehensive income (loss) is summarized below. | ||||||||
For the Year Ended December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Tax expense (benefit) at US rate of 34% | $ | (98,623 | ) | $ | (34,013 | ) | ||
Other adjustments: | ||||||||
Non-deductibility of goodwill impairment | 3,500 | 16,377 | ||||||
Rate differential of other jurisdictions | 11,047 | 4,734 | ||||||
Effects of foreign earnings | (6,671 | ) | (2,546 | ) | ||||
Change in valuation allowance | 37,894 | 5,885 | ||||||
Effect of a change in tax rates | 3,153 | — | ||||||
Loss carryforwards removed due to disposal of subsidiary | — | 1,441 | ||||||
Other | 14 | 108 | ||||||
Income tax provision | $ | (49,686 | ) | $ | (8,014 | ) | ||
The components of the deferred tax assets and deferred tax liabilities are as follows: | ||||||||
For the years ended | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Deferred tax assets: | ||||||||
Net operating loss carryforwards | $ | 84,893 | $ | 57,169 | ||||
Stock-based compensation | 1,691 | 1,163 | ||||||
Property, plant and equipment | 7,838 | 18,927 | ||||||
Other | 1,239 | 1,555 | ||||||
95,661 | 78,814 | |||||||
Less: Valuation allowance | (92,795 | ) | (60,921 | ) | ||||
Total deferred tax assets | 2,866 | 17,893 | ||||||
Deferred tax liabilities: | ||||||||
Property, plant and equipment | (2,388 | ) | (64,232 | ) | ||||
Other | (478 | ) | (733 | ) | ||||
Total deferred tax liabilities | (2,866 | ) | (64,965 | ) | ||||
Net deferred tax asset (liability) | $ | — | $ | (47,072 | ) | |||
In accordance with ASC 740, the Company presents deferred tax assets net of its deferred tax liabilities on a tax jurisdictional basis on its Consolidated Balance Sheets. The net deferred tax liability as of December 31, 2013 was zero. The net deferred tax liability as of December 31, 2012 was $47.1 million, consisting primarily of a $63.7 million deferred tax liability related to the basis differences of the property, plant and equipment of our Velardeña Properties, and a $16.3 million deferred tax asset related to Mexico net operating losses, respectively. | ||||||||
At December 31, 2013, the Company had net operating loss carryforwards in the U.S. and in certain non-U.S. jurisdictions totaling $277.9 million. Of these, $97.0 million is related to the Velardeña Properties in Mexico and expire in future years through 2023; $24.0 million is related to other Mexico exploration activities and also expire in future years through 2023; $44.3 million of net operating losses exist in Luxembourg and have no expiration date; and $69.9 million exist in other non-U.S. countries and will expire in future years through 2033. In the U.S. there are $42.7 million of net operating loss carryforwards which will expire in future years through 2033. A portion of the U.S. net operating loss carryforwards are subject to limitations under Internal Revenue Code Section 382, relating to two change of control events triggered by the Company’s public offering of its common stock in March 2010 and by the Company’s acquisition of ECU in September 2011. | ||||||||
The valuation allowance offsetting the Company’s deferred tax assets of $92.8 million and $60.9 million at December 31, 2013 and 2012, respectively, relates primarily to the uncertain utilization of certain deferred tax assets, principally net operating loss carryforwards, in various tax jurisdictions. The Company continually assesses both positive and negative evidence to determine whether it is more likely than not that deferred tax assets can be realized prior to their expiration. | ||||||||
The Company, a Delaware corporation, and its subsidiaries file tax returns in the United States and in various foreign jurisdictions. The tax rules and regulations in these countries are highly complex and subject to interpretation. The Company’s tax returns are subject to examination by the relevant taxing authorities and in connection with such examinations, disputes can arise with the taxing authorities over the interpretation or application of certain tax rules within the country involved. In accordance with ASC 740, the Company identifies and evaluates uncertain tax positions, and recognizes the impact of uncertain tax positions for which there is less than a more-likely-than-not probability of the position being upheld upon review by the relevant taxing authority. Such positions are deemed to be “unrecognized tax benefits” which require additional disclosure and recognition of a liability within the financial statements. If recognized, none of the unrecognized tax benefits would affect the Company’s effective tax rate. | ||||||||
The Company had unrecognized tax benefits of $2.5 million, including estimated penalties and interest, as of December 31, 2012, and no unrecognized tax benefits were stated on the Consolidated Balance Sheet as of December 31, 2013. During 2013 an unrecognized tax benefit was effectively settled with taxing authorities. Below is a reconciliation of the beginning and ending amount of gross unrecognized tax benefits, which includes unrecognized tax benefits presented net of deferred tax assets on the Consolidated Balance Sheet, and also excludes any estimated penalties and interest on all identified unrecognized tax benefits. | ||||||||
The Year Ended December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Gross unrecognized tax benefits at beginning of period | $ | 2,841 | $ | 2,790 | ||||
Increases for tax positions taken during prior years | 17 | 329 | ||||||
Decreases relating to settlements with taxing authorities | (889 | ) | — | |||||
Reductions due to lapse of statute of limitations | (301 | ) | (278 | ) | ||||
Gross unrecognized tax benefits at end of period | $ | 1,668 | $ | 2,841 | ||||
Tax years as early as 2009 remain open and are subject to examination in the Company’s principal tax jurisdictions. Certain of the Company’s subsidiaries in Mexico are under examination by the Mexico tax authorities for fiscal years 2011 and 2013. The Company does not expect a significant change to its net unrecognized tax benefits over the next 12 months. The total amount of interest and penalties recognized in the statement of operations for 2013 and 2012 is an income tax benefit of $1.3 and $0.1 million, respectively and there are no interest and penalties recognized in the statement of financial position as of December 31, 2013. The Company and the Predecessor classify income tax related interest and penalties as income tax expense. |
Equity
Equity | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Equity | ' | |||||||||||
Equity | ' | |||||||||||
15. Equity | ||||||||||||
Public offerings, private placements and registered offering of the Company’s common stock | ||||||||||||
On September 19, 2012, the Company completed a registered offering (the “Offering”) of 5,497,504 shares (the “Shares”) of the Company’s common stock, par value $0.01 per share, and warrants (the “Warrants”) to purchase 2,748,752 shares of the Company’s common stock. The Shares and Warrants were sold in units (“Units”) at a price of $5.75 per Unit, with each Unit consisting of one Share of the Company’s common stock and a Warrant to purchase 0.50 of a share of the Company’s common stock. The Warrants became exercisable on March 20, 2013, at an exercise price of $8.42 per share and will expire on September 19, 2017, five years from the date of issuance. The Shares and the Warrants were issued separately. The underwriter purchased the Units at a price of $5.4625 per Unit, which was net of the underwriting discount of 5 percent. The Company received net proceeds from the Offering of approximately $29.4 million after the underwriter discount of approximately $1.6 million and other costs of approximately $0.6 million. | ||||||||||||
On September 19, 2012 the Company also completed a private placement with The Sentient Group (“Sentient”), the Company’s largest stockholder, pursuant to which Sentient purchased, pursuant to Regulation S under the U.S. Securities Act of 1933, a total of 1,365,794 Units, with each Unit consisting of one share of the Company’s common stock and a Warrant to purchase 0.50 of a share of the Company’s common stock. The Warrants became exercisable on March 20, 2013, at an exercise price of $8.42 per share and will expire on September 19, 2017, five years from the date of issuance. Each Unit was priced at $5.4625, the same discounted price paid by the underwriter in the Offering. The Company received net proceeds from the private placement of approximately $7.5 million after the discount of approximately $0.4 million. Following the completion of the Private Placement and the Offering, Sentient continued to hold approximately 19.9% of the Company’s outstanding common stock (excluding restricted common stock held by the Company’s employees). Sentient is an independent private equity firm that manages investments in the global resources industry. | ||||||||||||
Equity Incentive Plans | ||||||||||||
In April 2009, the Company adopted the 2009 Equity Incentive Plan (the “Equity Plan”) pursuant to which awards of the Company’s common stock may be made to officers, directors, employees, consultants and agents of the Company and its subsidiaries. The Company recognizes stock-based compensation costs using a graded vesting attribution method whereby costs are recognized over the requisite service period for each separately vesting portion of the award. | ||||||||||||
The following table summarizes the status of the Company’s restricted stock grants issued under the Equity Plan at December 31, 2013 and 2012 and changes during the years then ended: | ||||||||||||
The Year Ended December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Restricted Stock Grants | Number of | Weighted | Number of | Weighted | ||||||||
Shares | Average | Shares | Average | |||||||||
Grant Date | Grant Date | |||||||||||
Fair Value | Fair Value | |||||||||||
Per Share | Per Share | |||||||||||
Outstanding at beginning of year | 823,500 | $ | 5.67 | 223,000 | $ | 11.54 | ||||||
Granted during the year | 637,000 | 0.76 | 717,500 | 4.79 | ||||||||
Restrictions lifted during the year | (200,029 | ) | 6.54 | (112,000 | ) | 11.67 | ||||||
Forfeited during the year | (344,500 | ) | 4.6 | (5,000 | ) | 6.19 | ||||||
Outstanding at end of year | 915,971 | $ | 2.47 | 823,500 | $ | 5.67 | ||||||
In connection with performance and reductions in work force, the Company’s Compensation Committee and Board of Directors approved a 10% annual salary reduction effective June 1, 2013 for certain officers of the Company. In conjunction with the salary reduction, expected to be in effect for one year, the Compensation Committee approved a grant of an aggregate of 149,500 restricted shares to the officers effective June 1, 2013. The stock will vest one year from the grant date. In addition, 2,500 shares of restricted stock were granted to a new employee hired during the period. One third of the restricted stock granted to the employee vests on each of the first, second and third anniversaries of the grant dates, provided the employee continues to serve the Company at that time. The remaining 485,000 shares were granted to officers during December 2013 as a portion of their annual compensation. One third of the December 2013 restricted stock grants will vest on each of the first, second and third anniversaries of the grant dates, provided the officer continues to serve the Company at that time. | ||||||||||||
Restrictions were lifted on 187,629 shares during 2013 on the anniversaries of grants made to officers and employees in prior years and restrictions were lifted on 12,400 shares related to an employee’s retirement. | ||||||||||||
Included in the forfeitures for 2013 are 199,500 unvested shares related to the resignation of two officers of the Company during the year. Also, included in the forfeitures for 2013 are 145,000 unvested shares that were surrendered to the Company on December 13, 2013 by an officer of the Company (see Note 10). The surrender is the result of the determination by the Board of Directors of the Company that the officer had been granted shares of common stock during 2012 in excess of the 150,000 share limit per the Equity Plan on grants to any one individual in one calendar year. In addition the officer also surrendered 27,500 vested shares that were granted in 2010 and vested in 2011 that were also determined to be in excess of the 150,000 share limit. Per the terms of a Stock Surrender and Grant Agreement entered into on December 13, 2013 with the officer, the officer was granted 172,500 KELTIP Units (see Note 10). | ||||||||||||
For the years ended December 31, 2013 and 2012 the Company recognized approximately $1.0 million and $2.4 million, respectively, of compensation expense related to the restricted stock grants. The Company expects to recognize additional compensation expense related to these awards of approximately $0.7 million over the next 36 months. | ||||||||||||
The following table summarizes the status of the Company’s stock option grants issued under the Equity Plan at December 31, 2013 and 2012 and changes during the years then ended: | ||||||||||||
The Year Ended December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Equity Plan Options | Number of | Weighted | Number of | Weighted | ||||||||
Shares | Average Grant | Shares | Average | |||||||||
Date Fair | Grant Date | |||||||||||
Value Per | Fair Value | |||||||||||
Share | Per Share | |||||||||||
Outstanding at beginning of year | 118,810 | $ | 8.01 | 136,810 | $ | 8.01 | ||||||
Granted during the year | — | — | — | — | ||||||||
Restrictions lifted during the year | — | — | — | — | ||||||||
Forfeited during the year | (8,000 | ) | $ | 8.01 | (18,000 | ) | $ | 8.01 | ||||
Outstanding at end of year | 110,810 | $ | 8.01 | 118,810 | $ | 8.01 | ||||||
Exercisable at end of period | 110,810 | $ | 8.01 | 118,810 | $ | 8.01 | ||||||
Granted and vested | 110,810 | $ | 8.01 | 118,810 | $ | 8.01 | ||||||
The fair value of each option award is estimated on the date of grant using the Black-Scholes option pricing model using the assumptions noted in the following table. Expected volatilities are based on the historical volatilities of the Company’s shares. The Company uses historical data to estimate option exercises and forfeitures within the Black-Scholes model. The expected term of the options granted represents the period of time that options granted are expected to be outstanding, based on past experience and future estimates and includes data related to both employees and directors. The risk-free rate for periods within the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The Company currently does not foresee the payment of dividends in the near term. | ||||||||||||
Year Ended | ||||||||||||
December 31, | ||||||||||||
2010 | ||||||||||||
Expected volatility | 73.2 | % | ||||||||||
Weighted average volatility | 73.2 | % | ||||||||||
Expected dividend yield | — | |||||||||||
Expected term (in years) | 5 | |||||||||||
Risk-free rate | 1.5 | % | ||||||||||
As a result of the ECU merger all of the outstanding stock option grants vested on September 2, 2011. As a result of the accelerated vesting the awards were fully expensed at December 31, 2011 and the Company did not recognize any expense related to the outstanding options during the years ended December 31, 2013 and 2012. | ||||||||||||
Also, pursuant to the Equity Plan, the Company’s Board of Directors adopted the Non-Employee Director’s Deferred Compensation and Equity Award Plan (the “Deferred Compensation Plan”). Pursuant to the Deferred Compensation Plan the non-employee directors receive a portion of their compensation in the form of Restricted Stock Units (“RSUs”) issued under the Equity Plan. The RSUs vest on the first anniversary of the grant and each vested RSU entitles the director to receive one unrestricted share of common stock upon the termination of the director’s board service. | ||||||||||||
The following table summarizes the status of the RSU grants issued under the Deferred Compensation Plan at December 31, 2013 and 2012 and changes during the years then ended: | ||||||||||||
For the Year Ended December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Restricted Stock Units | Number of | Weighted | Number of | Weighted | ||||||||
Underlying | Average Grant | Underlying | Average | |||||||||
Shares | Date Fair Value | Shares | Grant Date | |||||||||
Per Share | Fair Value | |||||||||||
Per Share | ||||||||||||
Outstanding at beginning of year | 143,995 | $ | 7.21 | 63,781 | $ | 11.57 | ||||||
Granted during the year | 441,290 | 1.59 | 80,214 | 3.74 | ||||||||
Restrictions lifted during the year | — | — | — | — | ||||||||
Forfeited during the year | — | — | — | — | ||||||||
Outstanding at end of year | 585,285 | $ | 2.97 | 143,995 | $ | 7.21 | ||||||
For the years ended December 31, 2013 and 2012 the Company recognized approximately $0.6 million and $0.2 million, respectively, of compensation expense related to the RSU grants. The Company expects to recognize additional compensation expense related to the RSU grants of approximately $0.2 million over the next six months. |
Sale_of_Metals_and_Cost_of_Met
Sale of Metals and Cost of Metals Sold | 12 Months Ended |
Dec. 31, 2013 | |
Sale of Metals and Cost of Metals Sold | ' |
Sale of Metals and Cost of Metals Sold | ' |
16. Sale of Metals and Cost of Metals Sold | |
During the years ended December 31, 2013 and 2012, the Company sold marketable products including concentrates and precipitates from its Velardeña Properties. During 2012, the Company also sold doré products from its Velardeña Properties. During 2012 and 2013 the Company sold marketable products to five customers. Under the terms of the Company’s agreements with one doré and precipitate customer, title does not pass to the purchaser until the product is received by the refinery, at which point revenue is recognized. For the Company’s other customers, title generally passes when a provisional payment is made, which occurs generally after the product is shipped and customary sales documents are completed. Costs related to the sale of metals products include direct and indirect costs incurred to mine, process and market the products. At December 31, 2012, the Company had written down its metals inventory to net realizable value including a charge to the cost of metals sold of approximately $2.7 million and a charge to depreciation expense of approximately $0.8 million. The Company had no metals inventory at December 31, 2013 as a result of the suspension of mining and processing at its Velardeña Properties (see Note 1). |
Cash_Flow_Information
Cash Flow Information | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Cash Flow Information | ' | |||||||
Cash Flow Information | ' | |||||||
17. Cash Flow Information | ||||||||
The following table reconciles net income (loss) for the period to cash from operations: | ||||||||
The Year Ended December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Cash flows from operating activities: | ||||||||
Net income (loss) | $ | (240,380 | ) | $ | (92,025 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Amortization and depreciation | 6,927 | 10,012 | ||||||
Loss on sale of investments | 133 | 52 | ||||||
Gain on sale of assets, net | (3,626 | ) | (4,070 | ) | ||||
Accretion of asset retirement obligation | 184 | 101 | ||||||
Asset write off | 30 | 521 | ||||||
Write off of loss contingency | (2,450 | ) | — | |||||
Impairment of long lived assets | 243,985 | — | ||||||
Impairment of goodwill | 11,666 | 58,489 | ||||||
Fair value of stock/warrants received for mineral rights | — | (270 | ) | |||||
Deferred income taxes | (47,634 | ) | (8,014 | ) | ||||
Foreign exchange (gain) loss on loss contingency | (8 | ) | 548 | |||||
Foreign exchange (gain) loss on deferred tax liability | 562 | (847 | ) | |||||
Stock compensation | 1,555 | 2,588 | ||||||
Changes in operating assets and liabilities: | ||||||||
Decrease (increase) in trade accounts receivable | 1,266 | (1,291 | ) | |||||
Decrease in prepaid expenses and other assets | 86 | 2,176 | ||||||
Decrease in inventories | 2,511 | 1,071 | ||||||
Decrease (increase) in value added tax recoverable (net) | 2,658 | (3,106 | ) | |||||
Decrease in accounts payable and accrued Liabilities | (5,159 | ) | (2,487 | ) | ||||
Decrease in deferred leasehold payments | (140 | ) | (95 | ) | ||||
Decrease in reclamation liability | (44 | ) | — | |||||
Other increase (decrease) | — | 6 | ||||||
Net cash used in operating activities | $ | (27,878 | ) | $ | (36,641 | ) | ||
The Company did not make any cash payments for interest or income taxes during the years ended December 31, 2013 and 2012. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Commitments and Contingencies | ' | |||||||||||||||||||
Commitments and Contingencies | ' | |||||||||||||||||||
18. Commitments and Contingencies | ||||||||||||||||||||
Leases and Purchase Commitments | ||||||||||||||||||||
The Company has non-cancelable operating lease commitments as follows: | ||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | |||||||||||||||
El Quevar mining concessions (estimated) | $ | 34 | $ | 34 | $ | 34 | $ | 34 | $ | 34 | $ | — | ||||||||
Velardeña mining consessions (estimated) | $ | 12 | $ | 12 | $ | 12 | $ | 12 | $ | 12 | $ | — | ||||||||
Office space | $ | 397 | $ | 270 | $ | 242 | $ | 248 | $ | 255 | $ | 239 | ||||||||
Dedicated communications link | $ | 84 | $ | 70 | $ | — | $ | — | $ | — | $ | — | ||||||||
Purchase option agreement | $ | 550 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||
The Company is required to make payments to the Argentinean government to maintain its rights to the El Quevar mining concessions. The Company has made such payments totaling approximately $34,000 and $28,000 for the years ended December 31, 2013 and 2012, respectively. | ||||||||||||||||||||
The Company is required to pay concession holding fees to the Mexican government to maintain its rights to the Velardeña Properties mining concessions. During the years ended December 31, 2013 and 2012 the Company made such payments totaling approximately $9,000 and $23,000, respectively. The payments include payments made related to adjacent exploration concessions on which there is no current mining. | ||||||||||||||||||||
The Company has office leases for its corporate headquarters in Golden, Colorado, as well as for its Velardeña Properties in Mexico, and exploration offices in Mexico and Argentina. The lease for the corporate headquarters office space was renegotiated and extended during the first quarter 2014. The new lease reflects an approximately 46% reduction in space and an approximately 44% reduction in cost beginning March 1, 2014. The new lease expires November 30, 2019. Payments associated with the corporate headquarters lease were recorded to rent expense by the Company in the amounts of $257,000 and $305,000 for the years ended December 31, 2013 and 2012, respectively. | ||||||||||||||||||||
The dedicated communications link provides high band width communications to our Velardeña Properties in Mexico. The Company has entered into an agreement with communications services provider that requires monthly payments of $7,000 through October of 2015. | ||||||||||||||||||||
The purchase option agreement is a required payment to a current El Quevar concession owner in order to retain title to the property. The Company has the right to terminate the payment obligation and release the concession at any time. | ||||||||||||||||||||
The Company cannot currently estimate the life of the Velardeña Properties or El Quevar project. This table assumes that no annual maintenance payments will be made more than five years after December 31, 2013. If the Company restarts the Velardeña Properties beyond five years, the Company expects that it would make annual maintenance payments of approximately $11,800 per year for the life of the Velardeña mine. If the Company continues to construct a mine at the El Quevar project, the Company expects that it would make annual maintenance payments of approximately $34,000 per year for the life of the El Quevar mine. | ||||||||||||||||||||
Payments associated with other exploration concessions the Company owns are not included because the Company has not completed exploration work on these concessions. Exploration success is historically low and the Company has the right to terminate the payments and release the concessions at any time. | ||||||||||||||||||||
Contingencies | ||||||||||||||||||||
The Company has recorded a loss contingency of $4.4 million and $4.6 million at December 31, 2013 and 2012, respectively as discussed in Note 12. |
Royalty_Income
Royalty Income | 12 Months Ended |
Dec. 31, 2013 | |
Royalty Income | ' |
Royalty Income | ' |
19. Royalty Income | |
During 2004 the Company sold the mineral rights on a portion of its Platosa property in Mexico to Excellon Resources Inc. (“Excellon”) and retained a 5% net smelter return (“NSR”) royalty interest that decreases to a 2% NSR after the Company had received $4.0 million of royalty payments. Excellon has been mining on the royalty section of the property and producing and selling silver, zinc and lead since 2006. During the fourth quarter of 2009 the Company sold its remaining interest in the Platosa property to Excellon for $2.0 million in cash and retained a 1% NSR royalty. During the second quarter 2012 the Company sold its remaining 1% NSR royalty interest to Excellon for $2.4 million and recorded a $1.8 million gain on the sale which is reflected in Interest and other income on the accompanying Statements of Operations and Comprehensive Loss. Prior to the sale of the NSR royalty interest, the Company earned NSR royalties from Excellon of $0.4 million during the year ended December 31, 2012. | |
The Company did not record any royalty income during the year ended December 31, 2013. |
Foreign_Currency
Foreign Currency | 12 Months Ended |
Dec. 31, 2013 | |
Foreign Currency | ' |
Foreign Currency | ' |
20. Foreign Currency | |
The Company conducts exploration and mining activities primarily in Argentina and Mexico and gains and losses on foreign currency translation are related to those activities. The Company’s functional currency is the U.S. dollar but certain transactions are conducted in the local currencies resulting in foreign currency transaction gains or losses. |
Segment_Information
Segment Information | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
Segment Information | ' | ||||||||||||||||||||||
Segment Information | ' | ||||||||||||||||||||||
21. Segment Information | |||||||||||||||||||||||
The Company’s sole activity is the mining, construction and exploration of mineral properties containing precious metals. The Company’s reportable segments are based upon the Company’s revenue producing activities and cash consuming activities. The Company reports two segments, one for its Velardeña Properties in Mexico and the other comprised of non-revenue producing activities including exploration, construction and general and administrative activities. Intercompany revenue and expense amounts have been eliminated within each segment in order to report on the basis that management uses internally for evaluating segment performance. The financial information relating to the Company’s segments is as follows: | |||||||||||||||||||||||
Exploration, El | |||||||||||||||||||||||
Quevar, | |||||||||||||||||||||||
Costs | Depreciation, | Velardeña and | |||||||||||||||||||||
Applicable | Depletion and | Administrative | Capital | ||||||||||||||||||||
The Year ended December 31, 2013 | Revenue | to Sales | Amortization | Expense | Pre-Tax loss | Total Assets | Expenditures | ||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Velardeña Properties | $ | 10,680 | $ | 17,534 | $ | 5,978 | $ | 9,426 | $ | 278,195 | $ | 28,861 | $ | 1,767 | |||||||||
Corporate, Exploration & Other | — | — | 949 | 12,813 | 11,871 | 26,020 | 30 | ||||||||||||||||
$ | 10,680 | $ | 17,534 | $ | 6,927 | $ | 22,239 | $ | 290,066 | $ | 54,881 | $ | 1,797 | ||||||||||
The Year ended December 31, 2012 | |||||||||||||||||||||||
Velardeña Properties | $ | 26,086 | $ | 33,369 | $ | 8,635 | $ | 7,912 | $ | 81,600 | $ | 298,002 | $ | 9,531 | |||||||||
Corporate, Exploration & Other | — | — | 1,377 | 19,187 | 18,439 | 50,100 | 89 | ||||||||||||||||
$ | 26,086 | $ | 33,369 | $ | 10,012 | $ | 27,099 | $ | 100,039 | $ | 348,102 | $ | 9,620 | ||||||||||
The Velardeña Properties segment pre-tax loss for the year ended December 31, 2013 includes charges of $255.7 million related to the impairment of long lived assets and goodwill as discussed in Notes 2 and 3. The decline in the Velardeña Properties segment total assets from December 31, 2012 to December 31, 2013 is also related to the impairment of the long lived assets and goodwill. The Velardeña Properties segment pre-tax loss for the year ended December 31, 2012 includes a charge of $58.5 million related to the impairment of goodwill as discussed in Note 3. Goodwill was all related to the ECU merger and is therefore all related to the Velardeña Properties segment. | |||||||||||||||||||||||
All of the revenue for the two years presented was from the Company’s Velardeña Properties in Mexico (see Note 16). The revenue for both years was attributable to sales of precipitates and concentrates to five customers under varying agreements. The 2012 revenue also includes the sale of doré to one of the customers. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Summary of Significant Accounting Policies | ' |
Basis of consolidation | ' |
a. Basis of consolidation | |
All of the Company’s consolidated subsidiaries are 100% owned and as such the Company does not recognize a noncontrolling interest in any of its subsidiaries. All intercompany transactions and balances have been eliminated at consolidation. | |
Translation of foreign currencies | ' |
b. Translation of foreign currencies | |
Substantially all expenditures and sales are made in U.S. dollars. Accordingly, the Company and its subsidiaries use the U.S. dollar as their functional and reporting currency. | |
Cash and cash equivalents | ' |
c. Cash and cash equivalents | |
The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. | |
Investments | ' |
d. Investments | |
Available for Sale — Available for sale securities are recorded at fair value, with unrealized gains or losses recorded as a component of equity, unless the value of the security is considered other than temporarily impaired. Realized gains and losses and non-temporary impairments in value are recorded in the statement of operations. | |
Inventories | ' |
e. Inventories | |
Metals inventories at the Velardeña Properties consisted of marketable products including doré, concentrates and precipitates. Metals inventory were carried at the lower of average cost or net realizable value. Net realizable value represents the estimated future sales price of the product based on spot and futures metals prices through estimated sale and settlement dates, less the estimated costs to complete processing and bring the product to sale. Costs included in metals inventory included direct and indirect costs of mining and processing, including depreciation. At December 31, 2012 the Company had written down its metals inventory to net realizable value with excess costs included in cost of sales and depreciation. The Company did not have any metals inventories at December 31, 2013. | |
Materials and supplies inventories are valued at the lower of average cost or net realizable value. Cost includes applicable taxes and freight. The Company routinely counts and evaluates its material and supplies to determine the existence of any obsolete stock that is subject to impairment. | |
Mining properties, exploration and development costs | ' |
f. Mining properties, exploration and development costs | |
The Company expenses general prospecting costs and the costs of acquiring and exploring unevaluated mineral properties. When a mineral property is determined to have proven and probable reserves, subsequent development costs are capitalized to mineral properties. For acquired mineral properties with proven and probable reserves, the Company capitalizes acquisition costs and subsequent development costs. When mineral properties are developed and operations commence, capitalized costs are charged to operations using the units-of-production method over proven and probable reserves. Upon abandonment or sale of a mineral property, all capitalized costs relating to the specific property are written off in the period abandoned or sold and a gain or loss is recognized in the accompanying Consolidated Statements of Operations and Comprehensive Income. | |
As discussed in Note 1, the Company is considered an exploration stage company under the criteria set forth by the SEC since it has not yet demonstrated the existence of proven or probable reserves at the Velardeña Properties, or any of the Company’s other properties. As such, the Company expenses costs as incurred related to the extraction of mineralized material at its Velardeña Properties. The Company established a cost basis for the mineralized material at the Velardeña Properties as a result of purchase accounting for the Company’s business combination transaction with ECU in September 2011, the transaction pursuant to which the Company acquired the Velardeña Properties. Mineral properties acquired in the ECU merger were recorded at estimated fair market value based on valuations performed with the assistance of an independent appraisal firm and a minerals engineering company. Although the Company has not demonstrated the existence of proven and probable reserves, and the Company has not completed a pre-feasibility economic assessment, the Company had established the existence of mineralized material that was used in assigning value to mineral properties for purchase accounting purposes. The subsequent extraction of this mineralized material has provided a reasonable basis for the calculation of units-of-production depreciation for the cost basis in the mineral properties. | |
As a requirement of fresh start accounting, certain exploration properties were recorded at their fair market value upon emergence from Chapter 11 reorganization on March 24, 2009. On a quarterly basis the Company evaluates its exploration properties to determine if they meet the Company’s minimum requirements for continued evaluation. The rights to the properties that do not meet the minimum requirements are relinquished and the carrying values, if any are written off and reflected in other operating gains and losses, net on the accompanying Consolidated Statements of Operations and Comprehensive Loss. Costs of exploration subsequent to the application of fresh start accounting have and will continue to be expensed. | |
Property, plant and equipment and long lived asset impairment | ' |
g. Property, plant and equipment and long lived asset impairment | |
Buildings are depreciated using the straight—line method over the estimated useful lives of 30 to 40 years or the life of the mine whichever is shorter. Mining equipment and machinery excluding the plant are depreciated using the straight-line method over useful lives of three to eight years or the lease period, whichever is shorter. Mineral properties with proven and probable reserves and the plant are depreciated using units of production based on estimated mine reserves. Other furniture and equipment are depreciated using the straight-line method over estimated useful lives of three to five years. Depreciation on plant and equipment used in the construction of an asset is capitalized to the constructed asset. | |
As discussed above, the Company does not have any properties with proven or probable reserves including the the Velardeña Properties. | |
Property, plant and equipment are recorded at cost and per the guidance of ASC 360 the Company assesses the recoverability of its property, plant and equipment, including goodwill, at least annually or whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. If the sum of estimated future net cash flows on an undiscounted basis is less than the carrying amount of the related asset, impairment is considered to exist. The related impairment loss is measured by comparing estimated future net cash flows on a discounted basis to the carrying amount of the asset (see Notes 2 and 3). | |
ASC 350 requires that an entity assign its goodwill to reporting units and test each reporting unit’s goodwill for impairment at least annually or whenever events or changes in circumstances indicate the goodwill may be impaired. All of the goodwill recorded on the Company’s books is related to the Velardeña Properties acquired in the Transaction, which is considered by the Company to be a separate reporting unit (see Note 3). | |
Asset Retirement Obligations | ' |
h. Asset Retirement Obligations | |
The Company records asset retirement obligations (“ARO”) in accordance with ASC 410, “Asset Retirement and Environmental Obligations” (“ASC 410”), which establishes a uniform methodology for accounting for estimated reclamation and abandonment costs. According to ASC 410, the fair value of an ARO is recognized in the period in which it is incurred if a reasonable estimate of fair value can be made. An offsetting asset retirement cost (“ARC”) is capitalized as part of the carrying value of the assets with which it is associated, and depreciated over the useful life of the asset (see Note 11). | |
The Company prepares estimates of the timing and amount of expected cash flows when an ARO is incurred. The fair value of the ARO is measured by discounting the expected cash flows using a discount rate that reflects the credit adjusted risk-free rate of interest. The Company records the fair value of an ARO when it is incurred and changes in the fair value of the ARO are recorded as an adjustment to the corresponding ARC. The ARO is adjusted to reflect the passage of time (accretion cost) calculated by applying the discount rate implicit in the initial fair value measurement to the beginning-of-period carrying amount of the ARO. The Company records accretion costs to expense as incurred. | |
Revenue Recognition | ' |
i. Revenue Recognition | |
Following the guidance of ASC 605, “Revenue Recognition” (“ASC 605”), the Company recognizes “Revenue from the sale of metals” at the earliest point that both risk of loss and title transfer to the purchaser pursuant to the terms of the Company’s sales agreements. Prices for doré, concentrate and precipitate sales are fixed according to terms included in the sales agreements, which generally call for final pricing based on average metals prices observed over specific periods that range from 10 days prior to the transfer of title to the month following the month the product is received by the purchaser. Revenue is recorded based on estimated metals contained in the product from assay data and using either actual or projected prices for the pricing period specified in the sales agreement. Upon final settlement revenue may be adjusted for changes in actual contained metals and final metals prices. | |
Stock compensation | ' |
j. Stock compensation | |
Stock based compensation costs are recognized per the guidance of ASC 718, “Compensation — Stock Compensation” (“ASC 718”), using a graded vesting attribution method whereby costs are recognized over the requisite service period for each separately vesting portion of the award (see Note 15). Stock grants are valued at their grant date at fair value which in the case of options requires the use of the Black-Scholes option pricing model. Per ASC 718 the grants may be classified as equity grants or liability grants depending on the terms of the grant. | |
Net income (loss) per Common Stock/Ordinary Share | ' |
k. Net income (loss) per Common Stock/Ordinary Share | |
Basic income (loss) per share is computed by dividing net income (loss) available to holders of the Company’s Common Stock by the weighted average number of Common Stock/Ordinary Shares outstanding for the period. Diluted income (loss) per share reflects the potential dilution that would occur if securities or other contracts to issue Common Stock or Ordinary Shares were exercised or converted into Common Stock or Ordinary Shares. | |
At December 31, 2013 and 2012, all potentially dilutive shares were excluded from the computation of diluted earnings per share because to include them would have been anti-dilutive. | |
Comprehensive Income (Loss) | ' |
l. Comprehensive Income (Loss) | |
Comprehensive income (loss) is defined as all changes in equity (deficit), exclusive of transactions with stockholders, such as capital investments. Comprehensive income (loss) includes net income (loss) and changes in certain assets and liabilities that are reported directly in equity. For the years ended December 31, 2013 and 2012 Comprehensive Income (Loss) included the change in the market value of available for sale securities and is reported on the Consolidated Statements of Operations and Comprehensive Loss. | |
Income Taxes | ' |
m. Income Taxes | |
The Company accounts for income taxes in accordance with the provisions of ASC 740, “Income Taxes” (“ASC 740”), on a tax jurisdictional basis. The Company files United States and certain other foreign country income tax returns, and pays taxes reasonably determined to be due. The tax rules and regulations in these countries are highly complex and subject to interpretation. The Company’s income tax returns are subject to examination by the relevant taxing authorities and in connection with such examinations, disputes can arise with the taxing authorities over the interpretation or application of certain tax rules within the country involved. In accordance with ASC 740, the Company identifies and evaluates uncertain tax positions, and recognizes the impact of uncertain tax positions for which there is a less than more-likely-than-not probability of the position being upheld when reviewed by the relevant taxing authority. Such positions are deemed to be unrecognized tax benefits and a corresponding liability is established on the balance sheet. | |
The Company classifies income tax related interest and penalties as income tax expense. | |
Recently Adopted Standards | ' |
n. Recently Adopted Standards | |
In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2013-02, “Reporting of Amounts Reclassified out of Accumulated Other Comprehensive Income”. The purpose of this accounting standard update is to improve the reporting of reclassifications out of accumulated other comprehensive income and is effective for public entities prospectively for reporting periods beginning after December 15, 2012. Substantially all of the information that this update requires already is required to be disclosed elsewhere in the financial statements under U.S. GAAP. However, the new requirement regarding presenting information about amounts reclassified out of accumulated other comprehensive income and their corresponding effect on net income will present, in one place, information about significant amounts reclassified and, in some cases, cross-references to related footnote disclosures. The Company had only immaterial amounts classified out of accumulated other comprehensive income at December 31, 2012 and December 31, 2013. The adoption of this standard did not have an impact on the Company’s financial position or results of operations and is not expected to have an impact in the future. |
Impairment_of_Long_Lived_Asset1
Impairment of Long Lived Assets (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Impairment of long lived assets | ' | ||||||||||||||||
Schedule of details of components of the impairment of long lived assets | ' | ||||||||||||||||
Impairment Charges | |||||||||||||||||
Velardeña | |||||||||||||||||
Properties | San Diego | Total | |||||||||||||||
Asset Group | Asset Group | Impairment | |||||||||||||||
Mineral properties | $ | 217,524 | $ | — | $ | 217,524 | |||||||||||
Exploration properties | 3,472 | 8,659 | 12,131 | ||||||||||||||
Royalty properties | — | — | — | ||||||||||||||
Buildings | 3,036 | — | 3,036 | ||||||||||||||
Mining equipment and machinery | 10,394 | — | 10,394 | ||||||||||||||
Other furniture and equipment | 900 | — | 900 | ||||||||||||||
Asset retirement cost | — | — | |||||||||||||||
235,326 | 8,659 | 243,985 | |||||||||||||||
Velardena Properties Asset Group | ' | ||||||||||||||||
Impairment of long lived assets | ' | ||||||||||||||||
Schedule of details of components of the impairment of long lived assets | ' | ||||||||||||||||
Net Book Value | Net Book Value | Net Book Value | |||||||||||||||
Prior to | Jun. 30, 2013 | After | Dec. 31, 2013 | After | |||||||||||||
Impairment at | Impairment | Impairment at | Impairment | Impairment at | |||||||||||||
Jun. 30, 2013 | Charges | Jun. 30, 2013 | Charges | Dec. 31, 2013 | |||||||||||||
(in thousands) | |||||||||||||||||
Mineral properties (1) | $ | 232,805 | $ | 211,608 | $ | 21,197 | $ | 5,916 | $ | 15,384 | |||||||
Exploration properties | 3,472 | 3,472 | — | — | — | ||||||||||||
Tangible assets (2) | 23,928 | 14,330 | 9,598 | — | 8,485 | ||||||||||||
$ | 260,205 | $ | 229,410 | $ | 30,795 | $ | 5,916 | $ | 23,869 | ||||||||
(1) The December 31, 2013 mineral properties net book value reflects a $0.1 million adjustment recorded during the fourth quarter of 2013 in addition to the impairment charge. | |||||||||||||||||
(2) The December 31, 2013 tangible assets net book value reflects depreciation and asset disposals recorded during the third and fourth quarters of 2013. | |||||||||||||||||
San Diego exploration property | ' | ||||||||||||||||
Impairment of long lived assets | ' | ||||||||||||||||
Schedule of details of components of the impairment of long lived assets | ' | ||||||||||||||||
Net Book Value | Net Book Value | Net Book Value | |||||||||||||||
Prior to | Jun. 30, 2013 | After | Dec. 31, 2013 | After | |||||||||||||
Impairment at | Impairment | Impairment at | Impairment | Impairment at | |||||||||||||
Jun. 30, 2013 | Charges | Jun. 30, 2013 | Charges | Dec. 31, 2013 | |||||||||||||
(in thousands) | |||||||||||||||||
Exploration properties | $ | 9,260 | $ | 8,428 | $ | 832 | $ | 231 | $ | 601 | |||||||
$ | 9,260 | $ | 8,428 | $ | 832 | $ | 231 | $ | 601 | ||||||||
Investments_Tables
Investments (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Investments | ' | |||||||||||
Schedule of investments | ' | |||||||||||
December 31, 2012 | Cost | Estimated | Carrying | |||||||||
Fair Value | Value | |||||||||||
Investments: | ||||||||||||
Short-term: | ||||||||||||
Warrant to purchase common stock | $ | 124 | $ | — | $ | — | ||||||
Available for sale common stock | $ | 207 | $ | 242 | $ | 242 | ||||||
Total available for sale | 331 | 242 | 242 | |||||||||
Total short term | $ | 331 | $ | 242 | $ | 242 | ||||||
Prepaid_Expenses_and_Other_Ass1
Prepaid Expenses and Other Assets (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Prepaid Expenses and Other Assets | ' | |||||||
Schedule of prepaid expenses and other assets | ' | |||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Prepaid insurance | $ | 687 | $ | 611 | ||||
Prepaid contractor fees and vendor advances | 193 | 148 | ||||||
Taxes receivable | 96 | — | ||||||
Recoupable deposits and other | 115 | 285 | ||||||
$ | 1,091 | $ | 1,044 |
Inventories_Tables
Inventories (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Inventories | ' | |||||||
Schedule of inventories at the Velardena Properties | ' | |||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Metals inventory | $ | — | $ | 2,076 | ||||
In-process inventory | — | 228 | ||||||
Material and supplies | 449 | 1,084 | ||||||
$ | 449 | $ | 3,388 |
Property_Plant_and_Equipment_a1
Property, Plant and Equipment and Assets Held for Sale (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Property, Plant and Equipment and Assets Held for Sale | ' | ||||||||||
Schedule of components of property, plant and equipment | ' | ||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
(in thousands) | |||||||||||
Mineral properties | $ | 22,397 | $ | 239,200 | |||||||
Exploration properties | 2,993 | 15,685 | |||||||||
Royalty properties | 200 | 200 | |||||||||
Buildings | 2,349 | 4,808 | |||||||||
Mining equipment and machinery | 19,441 | 29,185 | |||||||||
Other furniture and equipment | 1,054 | 2,204 | |||||||||
Asset retirement cost | 2,087 | 1,883 | |||||||||
50,521 | 293,165 | ||||||||||
Less: Accumulated depreciation & amortization | (18,146 | ) | (12,260 | ) | |||||||
32,375 | 280,905 | ||||||||||
Schedule of impairment charges recorded to the Velardena Properties property, plant and equipment and the San Diego mineral property | ' | ||||||||||
Impairment Charges | |||||||||||
Velardeña | |||||||||||
Properties | San Diego | Total | |||||||||
Asset Group | Asset Group | Impairment | |||||||||
Mineral properties | $ | 217,524 | $ | — | $ | 217,524 | |||||
Exploration properties | 3,472 | 8,659 | 12,131 | ||||||||
Royalty properties | — | — | — | ||||||||
Buildings | 3,036 | — | 3,036 | ||||||||
Mining equipment and machinery | 10,394 | — | 10,394 | ||||||||
Other furniture and equipment | 900 | — | 900 | ||||||||
Asset retirement cost | — | — | |||||||||
235,326 | 8,659 | 243,985 | |||||||||
Accounts_Payable_and_Other_Acc1
Accounts Payable and Other Accrued Liabilities (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Accounts Payable and Other Accrued Liabilities | ' | |||||||
Schedule of accounts payable and other accrued liabilities | ' | |||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Accounts payable and accruals | $ | 717 | $ | 4,098 | ||||
Accrued employee compensation and benefits | 648 | 2,134 | ||||||
$ | 1,365 | $ | 6,232 |
Asset_Retirement_and_Reclamati1
Asset Retirement and Reclamation Liabilities (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Asset Retirement and Reclamation Liabilities | ' | |||||||
Summary of activity in the Velardena Properties ARO | ' | |||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Beginning balance | $ | 2,080 | $ | 3,577 | ||||
Changes in estimates, and other | 203 | (1,656 | ) | |||||
Accretion expense | 184 | 159 | ||||||
Ending balance | $ | 2,467 | $ | 2,080 |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Fair Value Measurements | ' | |||||||||||||
Schedule of financial assets at fair value by respective level of the fair value hierarchy | ' | |||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||
(in thousands) | ||||||||||||||
At December 31, 2013 | ||||||||||||||
Assets: | ||||||||||||||
Cash equivalents | $ | 19,146 | $ | — | $ | — | $ | 19,146 | ||||||
Trade accounts receivable | 25 | — | — | 25 | ||||||||||
$ | 19,171 | $ | — | $ | — | $ | 19,171 | |||||||
At December 31, 2012 | ||||||||||||||
Assets: | ||||||||||||||
Cash equivalents | $ | 44,406 | $ | — | $ | — | $ | 44,406 | ||||||
Short-term available for sale securities | 242 | — | — | 242 | ||||||||||
Trade accounts receivable | 1,291 | — | — | 1,291 | ||||||||||
$ | 45,939 | $ | — | $ | — | $ | 45,939 | |||||||
Summary of the Company's non-recurring fair value measurements | ' | |||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||
(in thousands) | ||||||||||||||
At December 31, 2013 | ||||||||||||||
Assets: | ||||||||||||||
Mineral properties | $ | — | $ | — | $ | 22,397 | $ | 22,397 | ||||||
Exploration properties | — | — | 2,993 | 2,993 | ||||||||||
Goodwill | — | — | — | — | ||||||||||
$ | — | $ | — | $ | 25,390 | $ | 25,390 | |||||||
At December 31, 2012 | ||||||||||||||
Assets: | ||||||||||||||
Mineral properties | $ | — | $ | — | $ | 239,200 | $ | 239,200 | ||||||
Exploration properties | — | — | 15,685 | 15,685 | ||||||||||
Goodwill | — | — | 11,666 | 11,666 | ||||||||||
$ | — | $ | — | $ | 266,551 | $ | 266,551 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Income Taxes | ' | |||||||
Schedule of the provision for income taxes | ' | |||||||
For the Year Ended December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
CURRENT TAXES: | ||||||||
United States | $ | — | $ | — | ||||
Other Countries | (2,450 | ) | (330 | ) | ||||
$ | (2,450 | ) | $ | (330 | ) | |||
DEFERRED TAXES: | ||||||||
United States | $ | — | $ | — | ||||
Other Countries | (47,236 | ) | (7,684 | ) | ||||
$ | (47,236 | ) | $ | (7,684 | ) | |||
Total Income Tax Provision (Benefit) | $ | (49,686 | ) | $ | (8,014 | ) | ||
Schedule of income (loss) from operations before income taxes by country | ' | |||||||
For the Year Ended December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
United States | $ | (8,632 | ) | $ | (12,107 | ) | ||
Other Countries | (281,434 | ) | (87,932 | ) | ||||
$ | (290,066 | ) | $ | (100,039 | ) | |||
Summary of reconciliation of the provision for income taxes computed at the statutory rate to the provision for income taxes | ' | |||||||
For the Year Ended December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Tax expense (benefit) at US rate of 34% | $ | (98,623 | ) | $ | (34,013 | ) | ||
Other adjustments: | ||||||||
Non-deductibility of goodwill impairment | 3,500 | 16,377 | ||||||
Rate differential of other jurisdictions | 11,047 | 4,734 | ||||||
Effects of foreign earnings | (6,671 | ) | (2,546 | ) | ||||
Change in valuation allowance | 37,894 | 5,885 | ||||||
Effect of a change in tax rates | 3,153 | — | ||||||
Loss carryforwards removed due to disposal of subsidiary | — | 1,441 | ||||||
Other | 14 | 108 | ||||||
Income tax provision | $ | (49,686 | ) | $ | (8,014 | ) | ||
Schedule of components of the deferred tax assets and deferred tax liabilities | ' | |||||||
For the years ended | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Deferred tax assets: | ||||||||
Net operating loss carryforwards | $ | 84,893 | $ | 57,169 | ||||
Stock-based compensation | 1,691 | 1,163 | ||||||
Property, plant and equipment | 7,838 | 18,927 | ||||||
Other | 1,239 | 1,555 | ||||||
95,661 | 78,814 | |||||||
Less: Valuation allowance | (92,795 | ) | (60,921 | ) | ||||
Total deferred tax assets | 2,866 | 17,893 | ||||||
Deferred tax liabilities: | ||||||||
Property, plant and equipment | (2,388 | ) | (64,232 | ) | ||||
Other | (478 | ) | (733 | ) | ||||
Total deferred tax liabilities | (2,866 | ) | (64,965 | ) | ||||
Net deferred tax asset (liability) | $ | — | $ | (47,072 | ) | |||
Schedule of reconciliation of the beginning and ending amount of gross unrecognized tax benefits | ' | |||||||
The Year Ended December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Gross unrecognized tax benefits at beginning of period | $ | 2,841 | $ | 2,790 | ||||
Increases for tax positions taken during prior years | 17 | 329 | ||||||
Decreases relating to settlements with taxing authorities | (889 | ) | — | |||||
Reductions due to lapse of statute of limitations | (301 | ) | (278 | ) | ||||
Gross unrecognized tax benefits at end of period | $ | 1,668 | $ | 2,841 |
Equity_Tables
Equity (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Equity Plan | ' | |||||||||||
Schedule of status of the restricted stock grants issued under the Equity Plan | ' | |||||||||||
The Year Ended December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Restricted Stock Grants | Number of | Weighted | Number of | Weighted | ||||||||
Shares | Average | Shares | Average | |||||||||
Grant Date | Grant Date | |||||||||||
Fair Value | Fair Value | |||||||||||
Per Share | Per Share | |||||||||||
Outstanding at beginning of year | 823,500 | $ | 5.67 | 223,000 | $ | 11.54 | ||||||
Granted during the year | 637,000 | 0.76 | 717,500 | 4.79 | ||||||||
Restrictions lifted during the year | (200,029 | ) | 6.54 | (112,000 | ) | 11.67 | ||||||
Forfeited during the year | (344,500 | ) | 4.6 | (5,000 | ) | 6.19 | ||||||
Outstanding at end of year | 915,971 | $ | 2.47 | 823,500 | $ | 5.67 | ||||||
Schedule of status of the stock option grants issued under the Equity Plan | ' | |||||||||||
The Year Ended December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Equity Plan Options | Number of | Weighted | Number of | Weighted | ||||||||
Shares | Average Grant | Shares | Average | |||||||||
Date Fair | Grant Date | |||||||||||
Value Per | Fair Value | |||||||||||
Share | Per Share | |||||||||||
Outstanding at beginning of year | 118,810 | $ | 8.01 | 136,810 | $ | 8.01 | ||||||
Granted during the year | — | — | — | — | ||||||||
Restrictions lifted during the year | — | — | — | — | ||||||||
Forfeited during the year | (8,000 | ) | $ | 8.01 | (18,000 | ) | $ | 8.01 | ||||
Outstanding at end of year | 110,810 | $ | 8.01 | 118,810 | $ | 8.01 | ||||||
Exercisable at end of period | 110,810 | $ | 8.01 | 118,810 | $ | 8.01 | ||||||
Granted and vested | 110,810 | $ | 8.01 | 118,810 | $ | 8.01 | ||||||
Schedule of assumptions used for determining fair value of option | ' | |||||||||||
Year Ended | ||||||||||||
December 31, | ||||||||||||
2010 | ||||||||||||
Expected volatility | 73.2 | % | ||||||||||
Weighted average volatility | 73.2 | % | ||||||||||
Expected dividend yield | — | |||||||||||
Expected term (in years) | 5 | |||||||||||
Risk-free rate | 1.5 | % | ||||||||||
Deferred Compensation Plan | ' | |||||||||||
Schedule of status of the RSU grants issued under the Deferred Compensation Plan | ' | |||||||||||
For the Year Ended December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Restricted Stock Units | Number of | Weighted | Number of | Weighted | ||||||||
Underlying | Average Grant | Underlying | Average | |||||||||
Shares | Date Fair Value | Shares | Grant Date | |||||||||
Per Share | Fair Value | |||||||||||
Per Share | ||||||||||||
Outstanding at beginning of year | 143,995 | $ | 7.21 | 63,781 | $ | 11.57 | ||||||
Granted during the year | 441,290 | 1.59 | 80,214 | 3.74 | ||||||||
Restrictions lifted during the year | — | — | — | — | ||||||||
Forfeited during the year | — | — | — | — | ||||||||
Outstanding at end of year | 585,285 | $ | 2.97 | 143,995 | $ | 7.21 |
Cash_Flow_Information_Tables
Cash Flow Information (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Cash Flow Information | ' | |||||||
Schedule of reconciles net income (loss) for the period to cash from operations | ' | |||||||
The Year Ended December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Cash flows from operating activities: | ||||||||
Net income (loss) | $ | (240,380 | ) | $ | (92,025 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Amortization and depreciation | 6,927 | 10,012 | ||||||
Loss on sale of investments | 133 | 52 | ||||||
Gain on sale of assets, net | (3,626 | ) | (4,070 | ) | ||||
Accretion of asset retirement obligation | 184 | 101 | ||||||
Asset write off | 30 | 521 | ||||||
Write off of loss contingency | (2,450 | ) | — | |||||
Impairment of long lived assets | 243,985 | — | ||||||
Impairment of goodwill | 11,666 | 58,489 | ||||||
Fair value of stock/warrants received for mineral rights | — | (270 | ) | |||||
Deferred income taxes | (47,634 | ) | (8,014 | ) | ||||
Foreign exchange (gain) loss on loss contingency | (8 | ) | 548 | |||||
Foreign exchange (gain) loss on deferred tax liability | 562 | (847 | ) | |||||
Stock compensation | 1,555 | 2,588 | ||||||
Changes in operating assets and liabilities: | ||||||||
Decrease (increase) in trade accounts receivable | 1,266 | (1,291 | ) | |||||
Decrease in prepaid expenses and other assets | 86 | 2,176 | ||||||
Decrease in inventories | 2,511 | 1,071 | ||||||
Decrease (increase) in value added tax recoverable (net) | 2,658 | (3,106 | ) | |||||
Decrease in accounts payable and accrued Liabilities | (5,159 | ) | (2,487 | ) | ||||
Decrease in deferred leasehold payments | (140 | ) | (95 | ) | ||||
Decrease in reclamation liability | (44 | ) | — | |||||
Other increase (decrease) | — | 6 | ||||||
Net cash used in operating activities | $ | (27,878 | ) | $ | (36,641 | ) |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Commitments and Contingencies | ' | |||||||||||||||||||
Schedule of non-cancellable operating lease commitments | ' | |||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | |||||||||||||||
El Quevar mining concessions (estimated) | $ | 34 | $ | 34 | $ | 34 | $ | 34 | $ | 34 | $ | — | ||||||||
Velardeña mining consessions (estimated) | $ | 12 | $ | 12 | $ | 12 | $ | 12 | $ | 12 | $ | — | ||||||||
Office space | $ | 397 | $ | 270 | $ | 242 | $ | 248 | $ | 255 | $ | 239 | ||||||||
Dedicated communications link | $ | 84 | $ | 70 | $ | — | $ | — | $ | — | $ | — | ||||||||
Purchase option agreement | $ | 550 | $ | — | $ | — | $ | — | $ | — | $ | — |
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
Segment Information | ' | ||||||||||||||||||||||
Schedule of financial information relating to segments | ' | ||||||||||||||||||||||
Exploration, El | |||||||||||||||||||||||
Quevar, | |||||||||||||||||||||||
Costs | Depreciation, | Velardeña and | |||||||||||||||||||||
Applicable | Depletion and | Administrative | Capital | ||||||||||||||||||||
The Year ended December 31, 2013 | Revenue | to Sales | Amortization | Expense | Pre-Tax loss | Total Assets | Expenditures | ||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Velardeña Properties | $ | 10,680 | $ | 17,534 | $ | 5,978 | $ | 9,426 | $ | 278,195 | $ | 28,861 | $ | 1,767 | |||||||||
Corporate, Exploration & Other | — | — | 949 | 12,813 | 11,871 | 26,020 | 30 | ||||||||||||||||
$ | 10,680 | $ | 17,534 | $ | 6,927 | $ | 22,239 | $ | 290,066 | $ | 54,881 | $ | 1,797 | ||||||||||
The Year ended December 31, 2012 | |||||||||||||||||||||||
Velardeña Properties | $ | 26,086 | $ | 33,369 | $ | 8,635 | $ | 7,912 | $ | 81,600 | $ | 298,002 | $ | 9,531 | |||||||||
Corporate, Exploration & Other | — | — | 1,377 | 19,187 | 18,439 | 50,100 | 89 | ||||||||||||||||
$ | 26,086 | $ | 33,369 | $ | 10,012 | $ | 27,099 | $ | 100,039 | $ | 348,102 | $ | 9,620 | ||||||||||
Basis_of_Preparation_of_Financ1
Basis of Preparation of Financial Statements (Details) (ECU, Velardena Properties) | Sep. 02, 2011 |
ECU | Velardena Properties | ' |
Basis of Preparation of Financial Statements | ' |
Interest acquired (as a percent) | 100.00% |
Basis_of_Preparation_of_Financ2
Basis of Preparation of Financial Statements (Details 2) (Velardena Properties) | 0 Months Ended | 1 Months Ended | |
Jun. 19, 2013 | Oct. 31, 2013 | Jul. 31, 2013 | |
item | item | item | |
Velardena Properties | ' | ' | ' |
Suspension of operations | ' | ' | ' |
Number of positions eliminated | ' | 20 | 420 |
Number of employees planned to be retained | 40 | ' | ' |
Impairment_of_Long_Lived_Asset2
Impairment of Long Lived Assets (Details) (USD $) | 12 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | ||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 02, 2011 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | |
Mineral properties | Exploration properties | Velardena Properties Asset Group | Velardena Properties Asset Group | Velardena Properties Asset Group | Velardena Properties Asset Group | Velardena Properties Asset Group | Velardena Properties Asset Group | Velardena Properties Asset Group | Velardena Properties Asset Group | Velardena Properties Asset Group | Velardena Properties Asset Group | Velardena Properties Asset Group | Velardena Properties Asset Group | Velardena Properties Asset Group | Velardena Properties Asset Group | San Diego exploration property | San Diego exploration property | San Diego exploration property | San Diego exploration property | San Diego exploration property | San Diego exploration property | San Diego exploration property | Silver | Gold | |||
Mineral properties | Mineral properties | Mineral properties | Exploration properties | Exploration properties | Tangible assets | Tangible assets | Mineral resource and exploration properties | km | Exploration properties | Exploration properties | Exploration properties | ||||||||||||||||
Impairment of long lived assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Decrease in metal prices (as a percent) | ' | ' | ' | ' | ' | ' | 20.00% | 20.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 34.00% | 26.00% |
Net deferred tax asset (liability) | $0 | ($47,072,000) | ' | ' | $0 | ' | ' | ' | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income Tax Expense (Benefit) | -49,686,000 | -8,014,000 | ' | ' | ' | -45,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Enterprise value (in dollars per ounce) | ' | ' | ' | ' | 0.29 | 0.39 | ' | ' | 0.29 | 0.29 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Details of components of the impairment of long lived assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Book Value Prior to Impairment | ' | ' | ' | ' | ' | 260,205,000 | ' | ' | 30,795,000 | ' | 232,805,000 | 21,197,000 | ' | 3,472,000 | ' | 23,928,000 | 8,485,000 | ' | 9,260,000 | 832,000 | ' | ' | 9,260,000 | 832,000 | ' | ' | ' |
Impairment Charges | 243,985,000 | ' | 217,524,000 | 12,131,000 | ' | 229,410,000 | ' | ' | 5,916,000 | 235,326,000 | 211,608,000 | 5,916,000 | 217,524,000 | 3,472,000 | 3,472,000 | 14,330,000 | ' | 215,100,000 | 8,428,000 | 231,000 | 8,659,000 | ' | 8,428,000 | 231,000 | 8,659,000 | ' | ' |
Net Book Value After Impairment | ' | ' | ' | ' | 23,869,000 | 30,795,000 | ' | ' | 23,869,000 | 23,869,000 | 21,197,000 | 15,384,000 | 15,384,000 | ' | ' | 9,598,000 | 8,485,000 | 21,200,000 | 832,000 | 601,000 | 601,000 | ' | 832,000 | 601,000 | 601,000 | ' | ' |
Adjustments relating to long lived assets | ' | ' | ' | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of ownership interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' |
Distance of exploration property from other operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10 | ' | ' | ' | ' | ' | ' |
Purchase price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $9,300,000 | ' | ' | ' | ' | ' |
Impairment_of_Goodwill_Details
Impairment of Goodwill (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Goodwill | ' | ' | ' | ' | ' | ' |
Carrying value of goodwill | ' | $11,666 | ' | ' | $11,666 | ' |
Impairment of goodwill | ' | ' | ' | 11,666 | 58,489 | ' |
Silver | ' | ' | ' | ' | ' | ' |
Goodwill | ' | ' | ' | ' | ' | ' |
Decrease in metal prices (as a percent) | 34.00% | ' | ' | ' | ' | ' |
Gold | ' | ' | ' | ' | ' | ' |
Goodwill | ' | ' | ' | ' | ' | ' |
Decrease in metal prices (as a percent) | 26.00% | ' | ' | ' | ' | ' |
Velardena Properties Asset Group | ' | ' | ' | ' | ' | ' |
Goodwill | ' | ' | ' | ' | ' | ' |
Carrying value of goodwill | 500 | 11,700 | ' | 0 | 11,700 | 70,200 |
Impairment of goodwill | $11,200 | $1,300 | $57,200 | ' | $58,500 | ' |
Discount rate (as a percent) | ' | ' | ' | 21.00% | 21.00% | ' |
Decrease in metal prices (as a percent) | ' | 20.00% | 20.00% | ' | ' | ' |
Period of operating plan | ' | ' | ' | ' | '25 years | ' |
Velardena Properties Asset Group | Maximum | Expected results | ' | ' | ' | ' | ' | ' |
Goodwill | ' | ' | ' | ' | ' | ' |
Plant throughput up to which company plans to ramp up production by 2015 (in tonnes per day) | ' | 1,150 | ' | ' | 1,150 | ' |
Velardena Properties Asset Group | Silver | Maximum | ' | ' | ' | ' | ' | ' |
Goodwill | ' | ' | ' | ' | ' | ' |
Metal prices used in analysis (in dollars per ounce) | ' | ' | ' | 23.8 | ' | ' |
Velardena Properties Asset Group | Silver | Maximum | Expected results | ' | ' | ' | ' | ' | ' |
Goodwill | ' | ' | ' | ' | ' | ' |
Metal prices used in analysis (in dollars per ounce) | ' | 34.78 | ' | ' | 34.78 | ' |
Velardena Properties Asset Group | Silver | Minimum | ' | ' | ' | ' | ' | ' |
Goodwill | ' | ' | ' | ' | ' | ' |
Metal prices used in analysis (in dollars per ounce) | ' | ' | ' | 18.06 | ' | ' |
Velardena Properties Asset Group | Silver | Minimum | Expected results | ' | ' | ' | ' | ' | ' |
Goodwill | ' | ' | ' | ' | ' | ' |
Metal prices used in analysis (in dollars per ounce) | ' | 23.77 | ' | ' | 23.77 | ' |
Velardena Properties Asset Group | Gold | Maximum | ' | ' | ' | ' | ' | ' |
Goodwill | ' | ' | ' | ' | ' | ' |
Metal prices used in analysis (in dollars per ounce) | ' | ' | ' | 1,440 | ' | ' |
Velardena Properties Asset Group | Gold | Maximum | Expected results | ' | ' | ' | ' | ' | ' |
Goodwill | ' | ' | ' | ' | ' | ' |
Metal prices used in analysis (in dollars per ounce) | ' | 1,866 | ' | ' | 1,866 | ' |
Velardena Properties Asset Group | Gold | Minimum | ' | ' | ' | ' | ' | ' |
Goodwill | ' | ' | ' | ' | ' | ' |
Metal prices used in analysis (in dollars per ounce) | ' | ' | ' | 1,198 | ' | ' |
Velardena Properties Asset Group | Gold | Minimum | Expected results | ' | ' | ' | ' | ' | ' |
Goodwill | ' | ' | ' | ' | ' | ' |
Metal prices used in analysis (in dollars per ounce) | ' | 1,394 | ' | ' | 1,394 | ' |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Revenue Recognition | ' |
Number of days used for observing average prices of metals | '10 days |
Buildings | Minimum | ' |
Property, plant and equipment and long-lived asset impairment | ' |
Useful life | '30 years |
Buildings | Maximum | ' |
Property, plant and equipment and long-lived asset impairment | ' |
Useful life | '40 years |
Mining equipment and machinery | Minimum | ' |
Property, plant and equipment and long-lived asset impairment | ' |
Useful life | '3 years |
Mining equipment and machinery | Maximum | ' |
Property, plant and equipment and long-lived asset impairment | ' |
Useful life | '8 years |
Other furniture and equipment | Minimum | ' |
Property, plant and equipment and long-lived asset impairment | ' |
Useful life | '3 years |
Other furniture and equipment | Maximum | ' |
Property, plant and equipment and long-lived asset impairment | ' |
Useful life | '5 years |
Investments_Details
Investments (Details) (USD $) | 3 Months Ended | 3 Months Ended | |||||
Share data in Millions, unless otherwise specified | Mar. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2012 |
Short-term investments | Warrant to purchase common stock | Warrant to purchase common stock | Available for sale common stock | Available for sale common stock | |||
Maximum | |||||||
Investments | ' | ' | ' | ' | ' | ' | ' |
Cost | ' | $331,000 | $331,000 | $124,000 | ' | ' | $207,000 |
Estimated Fair Value | ' | 242,000 | 242,000 | ' | ' | ' | 242,000 |
Carrying Value | ' | 242,000 | 242,000 | ' | 1,000 | ' | 242,000 |
Shares received from transaction | ' | ' | ' | ' | ' | 3 | ' |
Net proceeds from sale of shares | $200,000 | ' | ' | ' | ' | ' | ' |
Prepaid_Expenses_and_Other_Ass2
Prepaid Expenses and Other Assets (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Prepaid Expenses and Other Assets | ' | ' |
Prepaid insurance | $687,000 | $611,000 |
Prepaid contractor fees and vendor advances | 193,000 | 148,000 |
Taxes receivable | 96,000 | ' |
Recoupable deposits and other | 115,000 | 285,000 |
Prepaid expenses and other assets | 1,091,000 | 1,044,000 |
Prepaid insurance included in non-current assets | $30,000 | $163,000 |
Inventories_Details
Inventories (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2012 | Dec. 31, 2013 | |
Inventories | ' | ' |
Metals inventory | $2,076,000 | $0 |
In-process inventory | 228,000 | ' |
Material and supplies | 1,084,000 | 449,000 |
Inventories | 3,388,000 | 449,000 |
Inventory write down charged to cost of metals sold | 2,700,000 | ' |
Inventory write down charged to depreciation expense | $800,000 | ' |
Value_added_tax_recoverable_De
Value added tax recoverable (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Value added tax recoverable | ' |
Expected period within which current amount of VAT will be recovered | '1 year |
Property_Plant_and_Equipment_a2
Property, Plant and Equipment and Assets Held for Sale (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property, plant and equipment | ' | ' |
Property, plant and equipment, gross | $50,521 | $293,165 |
Less: Accumulated depreciation and amortization | -18,146 | -12,260 |
Property, plant and equipment, net | 32,375 | 280,905 |
Mineral properties | ' | ' |
Property, plant and equipment | ' | ' |
Property, plant and equipment, gross | 22,397 | 239,200 |
Exploration properties | ' | ' |
Property, plant and equipment | ' | ' |
Property, plant and equipment, gross | 2,993 | 15,685 |
Royalty properties | ' | ' |
Property, plant and equipment | ' | ' |
Property, plant and equipment, gross | 200 | 200 |
Buildings | ' | ' |
Property, plant and equipment | ' | ' |
Property, plant and equipment, gross | 2,349 | 4,808 |
Mining equipment and machinery | ' | ' |
Property, plant and equipment | ' | ' |
Property, plant and equipment, gross | 19,441 | 29,185 |
Other furniture and equipment | ' | ' |
Property, plant and equipment | ' | ' |
Property, plant and equipment, gross | 1,054 | 2,204 |
Asset retirement cost | ' | ' |
Property, plant and equipment | ' | ' |
Property, plant and equipment, gross | $2,087 | $1,883 |
Property_Plant_and_Equipment_a3
Property, Plant and Equipment and Assets Held for Sale (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 18 Months Ended | |||||||||
Jun. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Feb. 28, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Velardena Properties | Velardena Properties | Velardena Properties | San Diego exploration property | San Diego exploration property | San Diego exploration property | Peruvian exploration properties | Peruvian exploration properties | Peruvian exploration properties | Mineral properties | Mineral properties | Mineral properties | Mineral properties | Exploration properties | Exploration properties | Exploration properties | Exploration properties | Exploration properties | Exploration properties | Exploration properties | Exploration properties | Buildings | Buildings | Mining equipment and machinery | Mining equipment and machinery | Other furniture and equipment | Other furniture and equipment | Royalty properties | ||||
Velardena Properties | Velardena Properties | Velardena Properties | Mexico | Velardena Properties | Velardena Properties | San Diego exploration property | San Diego exploration property | San Diego exploration property | Velardena Properties | Velardena Properties | Velardena Properties | Mexico | |||||||||||||||||||
item | |||||||||||||||||||||||||||||||
Property, plant and equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of properties whose rights are relinquished as minimum requirement for continued evaluation is not fulfilled | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment Charges | ' | $243,985,000 | ' | $229,410,000 | $5,916,000 | $235,326,000 | $8,428,000 | $231,000 | $8,659,000 | ' | ' | ' | $217,524,000 | $211,608,000 | $5,916,000 | $217,524,000 | ' | $12,131,000 | ' | $3,472,000 | $3,472,000 | $8,428,000 | $231,000 | $8,659,000 | $3,036,000 | $3,036,000 | $10,394,000 | $10,394,000 | $900,000 | $900,000 | ' |
Proceeds from sale of assets | ' | 4,217,000 | 5,061,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain on sale of assets | ' | 3,626,000 | 4,070,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assets Held for Sale | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Carrying value of the properties in assets held for sale | ' | ' | 575,000 | ' | ' | ' | ' | ' | ' | ' | ' | 600,000 | ' | ' | ' | ' | ' | ' | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net proceeds from sale of exploration concessions | ' | 4,217,000 | 5,061,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of an agreement to sell exploration concessions | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain on the sale of the properties | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Royalty production income | ' | ' | 373,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 |
Percentage of net smelter royalty interest in the Platosa property sold | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consideration for sale of smelter royalty interest in the Platosa property | 2,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain on sale of smelter royalty interest in the Platosa property | $1,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts_Payable_and_Other_Acc2
Accounts Payable and Other Accrued Liabilities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Accounts Payable and Other Accrued Liabilities | ' | ' |
Accounts payable and accruals | $717,000 | $4,098,000 |
Accrued employee compensation and benefits | 648,000 | 2,134,000 |
Accounts payable and other accrued liabilities | 1,365,000 | 6,232,000 |
Accrued vacation | 100,000 | 100,000 |
Withholding taxes and benefits payable | 200,000 | 2,000,000 |
Corporate administrative activities | ' | ' |
Accounts Payable and Other Accrued Liabilities | ' | ' |
Accounts payable and accruals | 500,000 | 700,000 |
Exploration | ' | ' |
Accounts Payable and Other Accrued Liabilities | ' | ' |
Accounts payable and accruals | 100,000 | 400,000 |
Velardena Properties | ' | ' |
Accounts Payable and Other Accrued Liabilities | ' | ' |
Accounts payable and accruals | 400,000 | 3,000,000 |
Accrued employee compensation and benefits | $300,000 | $1,700,000 |
Accounts_Payable_and_Other_Acc3
Accounts Payable and Other Accrued Liabilities (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 13, 2013 | Dec. 13, 2013 |
KELTIP | Equity Plan | Equity Plan | Equity Plan | Officer | Officer | |||
KELTIP Units | Restricted stock grants | Restricted stock grants | KELTIP | Equity Plan | ||||
KELTIP Units | Restricted stock grants | |||||||
Accounts payable and other accrued liabilities | ' | ' | ' | ' | ' | ' | ' | ' |
Awards granted (in shares) | ' | ' | ' | 485,000 | 637,000 | 717,500 | 172,500 | ' |
Awards vested on grant date (in shares) | ' | ' | ' | ' | 200,029 | 112,000 | 75,833 | ' |
Awards that will vest on the first anniversary of the grant date (in shares) | ' | ' | ' | ' | ' | ' | 48,333 | ' |
Awards that will vest on the second anniversary of the grant date (in shares) | ' | ' | ' | ' | ' | ' | 48,334 | ' |
Awards surrendered (in shares) | ' | ' | ' | ' | ' | ' | ' | 172,500 |
Accrued employee compensation and benefits | $648,000 | $2,134,000 | $81,000 | ' | ' | ' | ' | ' |
Asset_Retirement_and_Reclamati2
Asset Retirement and Reclamation Liabilities (Details) (USD $) | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | |
Summary of activity in the Velardena Operations ARO | ' | ' | ' | ' |
Beginning balance | ' | $2,259,000 | ' | ' |
Accretion expense | ' | 184,000 | 101,000 | ' |
Ending balance | ' | 2,602,000 | 2,259,000 | ' |
Velardena Properties | ' | ' | ' | ' |
Asset Retirement and Reclamation Liabilities | ' | ' | ' | ' |
Amortization expense related to the ARC | ' | 200,000 | 200,000 | ' |
ARO arising in the period (acquired at merger) | 3,500,000 | ' | ' | ' |
Summary of activity in the Velardena Operations ARO | ' | ' | ' | ' |
Beginning balance | ' | 2,080,000 | 3,577,000 | ' |
Changes in estimates, and other | ' | 203,000 | -1,656,000 | ' |
Accretion expense | ' | 184,000 | 159,000 | ' |
Ending balance | ' | 2,467,000 | 2,080,000 | ' |
Third party estimated closure plan | ' | ' | ' | 1,900,000 |
El Quevar project | ' | ' | ' | ' |
Summary of activity in the Velardena Operations ARO | ' | ' | ' | ' |
Ending balance | ' | $100,000 | $200,000 | ' |
Other_Liabilities_Details
Other Liabilities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Other Liabilities | ' | ' |
Other current liabilities | $4,405,000 | $7,074,000 |
Loss contingency | 4,400,000 | 4,600,000 |
Unrecognized tax benefit | ' | 2,500,000 |
Other long term liabilities | $53,000 | $193,000 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair value measurements | ' | ' |
Short-term available for sale securities | ' | $242 |
Recurring | Level 1 | ' | ' |
Fair value measurements | ' | ' |
Cash equivalents | 19,146 | 44,406 |
Short-term available for sale securities | ' | 242 |
Trade accounts receivable | 25 | 1,291 |
Assets | 19,171 | 45,939 |
Recurring | Total | ' | ' |
Fair value measurements | ' | ' |
Cash equivalents | 19,146 | 44,406 |
Short-term available for sale securities | ' | 242 |
Trade accounts receivable | 25 | 1,291 |
Assets | 19,171 | 45,939 |
Non-recurring | Level 3 | ' | ' |
Fair value measurements | ' | ' |
Mineral properties | 22,397 | 239,200 |
Exploration properties | 2,993 | 15,685 |
Goodwill | ' | 11,666 |
Assets | 25,390 | 266,551 |
Non-recurring | Total | ' | ' |
Fair value measurements | ' | ' |
Mineral properties | 22,397 | 239,200 |
Exploration properties | 2,993 | 15,685 |
Goodwill | ' | 11,666 |
Assets | $25,390 | $266,551 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Current taxes: | ' | ' |
Other Countries | ($2,450) | ($330) |
Current taxes | -2,450 | -330 |
Deferred taxes: | ' | ' |
Other Countries | -47,236 | -7,684 |
Deferred taxes | -47,236 | -7,684 |
Total Income Tax Provision (Benefit) | -49,686 | -8,014 |
Income (loss) from continuing operations before income taxes | ' | ' |
United States | -8,632 | -12,107 |
Other Countries | -281,434 | -87,932 |
Loss from operations before income taxes | -290,066 | -100,039 |
Reconciliation of the provision for income taxes computed at the statutory rate to the provision for income taxes | ' | ' |
US rate (as a percent) | 34.00% | 34.00% |
Tax expense (benefit) at US rate of 34% | -98,623 | -34,013 |
Other adjustments: | ' | ' |
Non-deductibility of goodwill impairment | 3,500 | 16,377 |
Rate differential of other jurisdictions | 11,047 | 4,734 |
Effects of foreign earnings | -6,671 | -2,546 |
Change in valuation allowance | 37,894 | 5,885 |
Effect of a change in tax rate | 3,153 | ' |
Loss carryforwards removed due to disposal of subsidiary | ' | 1,441 |
Other | 14 | 108 |
Total Income Tax Provision (Benefit) | -49,686 | -8,014 |
Velardena Operations | ' | ' |
Deferred taxes: | ' | ' |
Deferred taxes | 47,200 | ' |
Mexico | ' | ' |
Current taxes: | ' | ' |
Current taxes | 2,500 | 300 |
Deferred taxes: | ' | ' |
Deferred taxes | ' | $7,700 |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Net operating loss carryforwards | $84,893 | $57,169 |
Stock-based compensation | 1,691 | 1,163 |
Property, plant and equipment | 7,838 | 18,927 |
Other | 1,239 | 1,555 |
Deferred tax assets, gross | 95,661 | 78,814 |
Less: Valuation allowance | -92,795 | -60,921 |
Total deferred tax assets | 2,866 | 17,893 |
Deferred tax liabilities: | ' | ' |
Property, plant and equipment | -2,388 | -64,232 |
Other | -478 | -733 |
Total deferred tax liabilities | -2,866 | -64,965 |
Net deferred tax asset (liability) | 0 | -47,072 |
Mexico | ' | ' |
Deferred tax assets: | ' | ' |
Net operating loss carryforwards | ' | 16,300 |
Velardena Operations | ' | ' |
Deferred tax liabilities: | ' | ' |
Property, plant and equipment | ' | ($63,700) |
Income_Taxes_Details_3
Income Taxes (Details 3) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
item | ||
Operating loss carryforwards | ' | ' |
Net operating loss carryforwards | $277,900,000 | ' |
Number of change of control events that a portion of the U.S. net operating loss carryforwards are subject to limitation | 2 | ' |
Valuation allowance offsetting the deferred tax assets | 92,795,000 | 60,921,000 |
Unrecognized tax benefits would affect effective tax rate | 0 | ' |
Luxembourg and Chile | ' | ' |
Operating loss carryforwards | ' | ' |
Net operating loss carryforwards | 44,300,000 | ' |
Other non-U.S. countries | ' | ' |
Operating loss carryforwards | ' | ' |
Net operating loss carryforwards | 69,900,000 | ' |
U.S. | ' | ' |
Operating loss carryforwards | ' | ' |
Net operating loss carryforwards | 42,700,000 | ' |
Velardena Operations | ' | ' |
Operating loss carryforwards | ' | ' |
Net operating loss carryforwards | 97,000,000 | ' |
Other Mexico exploration activities | ' | ' |
Operating loss carryforwards | ' | ' |
Net operating loss carryforwards | $24,000,000 | ' |
Income_Taxes_Details_4
Income Taxes (Details 4) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Income Taxes | ' | ' |
Unrecognized tax benefits including estimated penalties and interest | $0 | $2,500,000 |
Reconciliation of the beginning and ending amount of gross unrecognized tax benefits | ' | ' |
Gross unrecognized tax benefits at beginning of period | 2,841,000 | 2,790,000 |
Increases for tax positions taken during prior years | 17,000 | 329,000 |
Decreases relating to settlements with taxing authorities | -889,000 | ' |
Reductions due to lapse of statute of limitations | -301,000 | -278,000 |
Gross unrecognized tax benefits at end of period | 1,668,000 | 2,841,000 |
Interest and penalties recognized in the statement of operations | 1,300,000 | 100,000 |
Interest and penalties recognized in the statement of financial position | $0 | ' |
Equity_Details
Equity (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||
Dec. 31, 2012 | Dec. 31, 2013 | Sep. 19, 2012 | Sep. 19, 2012 | |
Registered offering | Private placement | |||
Sentient | ||||
Common stock sold (in shares) | ' | ' | 5,497,504 | ' |
Units issued (in shares) | ' | ' | ' | 1,365,794 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 | $0.01 | ' |
Number of common shares that can be purchased upon exercise of warrant | ' | ' | 2,748,752 | ' |
Sale price (in dollars per shares) | ' | ' | $5.75 | $5.46 |
Number of shares of common stock per capital unit (in shares) | ' | ' | 1 | 1 |
Number of common shares which can be purchased with each warrant | ' | ' | 0.5 | 0.5 |
Exercise price of warrants (in dollars per share) | ' | ' | $8.42 | $8.42 |
Term of warrants | ' | ' | '5 years | '5 years |
Offer price per unit to underwriter (in dollars per share) | ' | ' | $5.46 | ' |
Percentage of underwriting discount | ' | ' | 5.00% | ' |
Net proceeds from offering | $36,908,000 | ' | $29,400,000 | $7,500,000 |
Amount of underwriting discount and commission | ' | ' | 1,600,000 | 400,000 |
Amount of other offering costs | ' | ' | $600,000 | ' |
Ownership interest in outstanding Common Stock (as a percent) | ' | ' | ' | 19.90% |
Equity_Details_2
Equity (Details 2) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | |||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 01, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 13, 2013 | Jun. 01, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 13, 2013 | |
Officers | Equity Plan | Equity Plan | Equity Plan | Equity Plan | Equity Plan | Equity Plan | Equity Plan | Equity Plan | Equity Plan | Equity Plan | Equity Plan | Equity Plan | Equity Plan | Deferred Compensation Plan | Deferred Compensation Plan | KELTIP | |||
item | Officers | Restricted stock grants | Restricted stock grants | Restricted stock grants | Restricted stock grants | Restricted stock grants | Restricted stock grants | Restricted stock grants | Restricted stock grants | Stock options | Stock options | Stock options | RSUs | RSUs | KELTIP Units | ||||
Officers and employees | Officers | Officers | Officers | Retired employee | New employee | Officer | |||||||||||||
Number of Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the beginning of year (in shares) | ' | ' | ' | ' | ' | 823,500 | 223,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 143,995 | 63,781 | ' |
Granted during the year (in shares) | ' | ' | ' | 485,000 | ' | 637,000 | 717,500 | ' | ' | 149,500 | ' | ' | 2,500 | ' | ' | ' | 441,290 | 80,214 | 172,500 |
Restrictions lifted during the year (in shares) | ' | ' | ' | ' | ' | -200,029 | -112,000 | 187,629 | ' | ' | ' | 12,400 | ' | ' | ' | ' | ' | ' | -75,833 |
Forfeited during the year (in shares) | ' | ' | ' | ' | ' | -344,500 | -5,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the end of year (in shares) | ' | ' | ' | ' | ' | 915,971 | 823,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 585,285 | 143,995 | ' |
Weighted Average Grant Date Fair Value Per Share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the beginning of year (in dollars per share) | ' | ' | ' | ' | ' | $5.67 | $11.54 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $7.21 | $11.57 | ' |
Granted during the year (in dollars per share) | ' | ' | ' | ' | ' | $0.76 | $4.79 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1.59 | $3.74 | ' |
Restrictions lifted during the year (in dollars per share) | ' | ' | ' | ' | ' | $6.54 | $11.67 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forfeited during the year (in dollars per share) | ' | ' | ' | ' | ' | $4.60 | $6.19 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the end of year (in dollars per share) | ' | ' | ' | ' | ' | $2.47 | $5.67 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2.97 | $7.21 | ' |
Additional information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of annual salary reduction | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period for which annual salary reduction will be effective | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of awards which will vest on each of the first, second and third anniversaries of the grant date | ' | ' | ' | 33.00% | ' | 33.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unvested shares forfeited due to resignation of employees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 199,500 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of employees resigned | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unvested awards surrendered (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 145,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share limit on grants to any one individual in one calendar year | ' | ' | ' | 150,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested awards surrendered (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 27,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Compensation expense | $1,555,000 | $2,588,000 | ' | ' | ' | $1,000,000 | $2,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $600,000 | $200,000 | ' |
Additional compensation expense expected to be recognized | ' | ' | ' | ' | ' | $700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $200,000 | ' | ' |
Period for recognition of additional compensation expense | ' | ' | ' | ' | ' | '36 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '6 months | ' | ' |
Vesting, from date of grant | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of unrestricted common shares that the Director is entitled to receive for each vested RSU, upon termination from board service | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' |
Number of Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at beginning of year (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 118,810 | 136,810 | ' | ' | ' | ' |
Forfeited during the year (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -8,000 | -18,000 | ' | ' | ' | ' |
Outstanding at end of year (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 110,810 | 118,810 | ' | ' | ' | ' |
Exercisable at end of period (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 110,810 | 118,810 | ' | ' | ' | ' |
Granted and vested (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 110,810 | 118,810 | ' | ' | ' | ' |
Weighted Average Exercise Price Per Share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at beginning of year (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $8.01 | $8.01 | ' | ' | ' | ' |
Forfeited or expired during year (in dollars per shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $8.01 | $8.01 | ' | ' | ' | ' |
Outstanding at the end of year (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $8.01 | $8.01 | ' | ' | ' | ' |
Exercisable at end of period (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $8.01 | $8.01 | ' | ' | ' | ' |
Granted and vested (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $8.01 | $8.01 | ' | ' | ' | ' |
Assumptions noted by using the Black-Scholes option pricing model for estimating fair value of each option award | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected volatility (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 73.20% | ' | ' | ' |
Weighted average volatility (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 73.20% | ' | ' | ' |
Expected term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' |
Risk-free rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.50% | ' | ' | ' |
Sale_of_Metals_and_Cost_of_Met1
Sale of Metals and Cost of Metals Sold (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
item | item | |
Sale of Metals and Cost of Metals Sold | ' | ' |
Number of customers to whom marketable products were sold | 5 | 5 |
Number of dore and precipitate customers with whom the entity entered into an agreement for passing the title to purchasers after the product is received by the refinery | 1 | ' |
Inventory write down charged to cost of metals sold | ' | $2,700,000 |
Inventory write down charged to depreciation expense | ' | 800,000 |
Metals inventory | $0 | $2,076,000 |
Cash_Flow_Information_Details
Cash Flow Information (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | ' | ' |
Net income (loss) | ($240,380) | ($92,025) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Amortization and depreciation | 6,927 | 10,012 |
Loss on sale of investments | 133 | 52 |
Gain on sale of assets, net | -3,626 | -4,070 |
Accretion of asset retirement obligation | 184 | 101 |
Asset write off | 30 | 521 |
Write off of loss contingency | -2,450 | ' |
Impairment of long lived assets | 243,985 | ' |
Impairment of goodwill | 11,666 | 58,489 |
Fair value of stock/warrants received for mineral rights | ' | -270 |
Deferred income taxes | -47,634 | -8,014 |
Foreign exchange (gain) loss on loss contingency | -8 | 548 |
Foreign exchange (gain) loss on deferred tax liability | 562 | -847 |
Stock compensation | 1,555 | 2,588 |
Changes in operating assets and liabilities: | ' | ' |
Decrease (increase) in trade accounts receivable | 1,266 | -1,291 |
Decrease in Prepaid Expense and Other Assets | 86 | 2,176 |
Decrease in inventories | 2,511 | 1,071 |
Decrease (increase) in value added tax recoverable (net) | 2,658 | -3,106 |
Decrease in accounts payable and accrued Liabilities | -5,159 | -2,487 |
Decrease in deferred leasehold payments | -140 | -95 |
Decrease in reclamation liability | -44 | ' |
Other increase (decrease) | ' | 6 |
Net cash used in operating activities | ($27,878) | ($36,641) |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Contingencies | ' | ' |
Loss contingency | $4,400,000 | $4,600,000 |
El Quevar mining concessions (estimated) | ' | ' |
Leases and Purchase Commitments | ' | ' |
2014 | 34,000 | ' |
2015 | 34,000 | ' |
2016 | 34,000 | ' |
2017 | 34,000 | ' |
2018 | 34,000 | ' |
Thereafter | 0 | ' |
Lease payments | 34,000 | 28,000 |
El Quevar mining concessions (estimated) | Expected payments | ' | ' |
Leases and Purchase Commitments | ' | ' |
Thereafter | 34,000 | ' |
Velardena mining concessions (estimated) | ' | ' |
Leases and Purchase Commitments | ' | ' |
2014 | 12,000 | ' |
2015 | 12,000 | ' |
2016 | 12,000 | ' |
2017 | 12,000 | ' |
2018 | 12,000 | ' |
Thereafter | 0 | ' |
Lease payments | 9,000 | 23,000 |
Velardena mining concessions (estimated) | Expected payments | ' | ' |
Leases and Purchase Commitments | ' | ' |
Thereafter | 11,800 | ' |
Office space | ' | ' |
Leases and Purchase Commitments | ' | ' |
2014 | 397,000 | ' |
2015 | 270,000 | ' |
2016 | 242,000 | ' |
2017 | 248,000 | ' |
2018 | 255,000 | ' |
Thereafter | 239,000 | ' |
Lease payments | 257,000 | 305,000 |
Reduction in space (as a percent) | 46.00% | ' |
Reduction in cost (as a percent) | 44.00% | ' |
Dedicated communications link | ' | ' |
Leases and Purchase Commitments | ' | ' |
2014 | 84,000 | ' |
2015 | 70,000 | ' |
Future monthly payments | 7,000 | ' |
Purchase option agreement | ' | ' |
Leases and Purchase Commitments | ' | ' |
2014 | $550,000 | ' |
Royalty_Income_Details
Royalty Income (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2012 | Dec. 31, 2009 | Dec. 31, 2012 | Dec. 31, 2004 | |
Royalty income | ' | ' | ' | ' |
Consideration for NSR royalty interest sold | $2,400,000 | ' | ' | ' |
Percentage of NSR royalty interest sold | 1.00% | ' | ' | ' |
Gain on the sale of NSR royalty interest | 1,800,000 | ' | ' | ' |
NSR royalties earned | ' | ' | 373,000 | ' |
Platosa property | ' | ' | ' | ' |
Royalty income | ' | ' | ' | ' |
Percentage of NSR royalty interest retained | ' | 1.00% | ' | 5.00% |
Percentage of NSR royalty interest retained after decrease | ' | ' | ' | 2.00% |
Consideration for NSR royalty interest sold | 2,400,000 | 2,000,000 | ' | 4,000,000 |
Percentage of NSR royalty interest sold | 1.00% | ' | ' | ' |
Gain on the sale of NSR royalty interest | 1,800,000 | ' | ' | ' |
NSR royalties earned | ' | ' | $400,000 | ' |
Segment_Information_Details
Segment Information (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
item | item | |
Segment Information | ' | ' |
Number of reportable segments | 2 | ' |
Revenue | $10,680 | $26,086 |
Costs Applicable to Sales | 17,534 | 33,369 |
Depreciation, Depletion and Amortization | 6,927 | 10,012 |
Exploration, El Quevar, Velardena and Administrative Expense | 22,239 | 27,099 |
Pre-Tax loss | 290,066 | 100,039 |
Total Assets | 54,881 | 348,102 |
Capital Expenditures | 1,797 | 9,620 |
Impairment of long lived assets and goodwill | 30 | 521 |
Impairment of goodwill | 11,666 | 58,489 |
Number of customers to whom marketable products were sold | 5 | 5 |
Number of customers for dore sales | 1 | ' |
Velardena Properties | ' | ' |
Segment Information | ' | ' |
Number of reportable segments | 1 | ' |
Revenue | 10,680 | 26,086 |
Costs Applicable to Sales | 17,534 | 33,369 |
Depreciation, Depletion and Amortization | 5,978 | 8,635 |
Exploration, El Quevar, Velardena and Administrative Expense | 9,426 | 7,912 |
Pre-Tax loss | 278,195 | 81,600 |
Total Assets | 28,861 | 298,002 |
Capital Expenditures | 1,767 | 9,531 |
Impairment of long lived assets and goodwill | 255,700 | ' |
Impairment of goodwill | ' | 58,500 |
Corporate, Exploration & Other | ' | ' |
Segment Information | ' | ' |
Depreciation, Depletion and Amortization | 949 | 1,377 |
Exploration, El Quevar, Velardena and Administrative Expense | 12,813 | 19,187 |
Pre-Tax loss | 11,871 | 18,439 |
Total Assets | 26,020 | 50,100 |
Capital Expenditures | $30 | $89 |