Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Aug. 06, 2015 | |
Document and Entity Information | ||
Entity Registrant Name | Golden Minerals Co | |
Entity Central Index Key | 1,011,509 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 53,162,833 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets | ||
Cash and cash equivalents (Note 4) | $ 3,291 | $ 8,579 |
Short-term investments (Note 4) | 162 | 0 |
Trade receivables | 43 | |
Inventories (Note 6) | 1,086 | 1,497 |
Value added tax receivable, net (Note 7) | 654 | 1,316 |
Prepaid expenses and other assets (Note 5) | 703 | 835 |
Total current assets | 5,939 | 12,227 |
Property, plant and equipment, net (Note 8) | 26,208 | 29,031 |
Total assets | 32,147 | 41,258 |
Current liabilities | ||
Accounts payable and other accrued liabilities (Note 9) | 1,757 | 1,639 |
Other current liabilities (Note 11) | 1,413 | 2,551 |
Total current liabilities | 3,170 | 4,190 |
Asset retirement obligation (Note 10) | 2,478 | 2,685 |
Warrant liability (Note 12) | 687 | 1,554 |
Other long term liabilities (Note 11) | 90 | 95 |
Total liabilities | $ 6,425 | $ 8,524 |
Commitments and contingencies (Note 19) | ||
Equity (Note 14) | ||
Common stock, $.01 par value,100,000,000 shares authorized; 53,162,833 shares issued and outstanding for both periods | $ 532 | $ 532 |
Additional paid in capital | 484,503 | 484,197 |
Accumulated deficit | (459,276) | (451,995) |
Accumulated other comprehensive loss | (37) | |
Shareholders' equity | 25,722 | 32,734 |
Total liabilities and equity | $ 32,147 | $ 41,258 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2015 | Dec. 31, 2014 |
CONDENSED 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 | 53,162,833 | 53,162,833 |
Common stock, shares outstanding | 53,162,833 | 53,162,833 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Revenue: | |||||
Sale of metals (Note 15) | $ 1,961 | $ 4,298 | |||
Costs and expenses: | |||||
Costs applicable to sale of metals (exclusive of depreciation shown below) (Note 15) | (2,775) | (5,787) | |||
Exploration expense | (1,267) | $ (1,653) | (2,236) | $ (3,253) | |
El Quevar project expense | (405) | (421) | (811) | (755) | |
Velardena project expense | (119) | ||||
Velardena shutdown and care & maintenance costs | (1,208) | (2,457) | |||
Administrative expense | (1,000) | (1,150) | (2,328) | (2,805) | |
Stock based compensation | (94) | (257) | (273) | (587) | |
Reclamation and accretion expense | (48) | (49) | (158) | (98) | |
Other operating income, net | 294 | 2 | 470 | 4 | |
Depreciation, depletion and amortization | (1,175) | (778) | (2,534) | (1,624) | |
Total costs and expenses | (6,470) | (5,514) | (13,776) | (11,575) | |
Loss from operations | (4,509) | (5,514) | (9,478) | (11,575) | |
Other income and (expense): | |||||
Interest and other income, net (Note 16) | 467 | 487 | 1,383 | 881 | |
Warrant derivative gain (Note 17) | 218 | 868 | |||
(Loss) gain on foreign currency | (26) | (16) | (54) | (7) | |
Total other income | 659 | 471 | 2,197 | 874 | |
Loss from operations before income taxes | (3,850) | (5,043) | (7,281) | (10,701) | |
Income tax benefit | 0 | 0 | |||
Net loss | (3,850) | (5,043) | (7,281) | (10,701) | |
Comprehensive loss, net of tax: | |||||
Unrealized gain (loss) on securities | 43 | (37) | |||
Comprehensive loss | $ (3,807) | $ (5,043) | $ (7,318) | $ (10,701) | |
Net loss per common share - basic | |||||
Loss (in dollars per share) | $ (0.07) | $ (0.12) | $ (0.14) | $ (0.25) | |
Weighted average common stock outstanding - basic (1) (in shares) | [1] | 52,688,552 | 42,918,426 | 52,688,552 | 42,906,090 |
[1] | Potentially dilutive shares have not been included because to do so would be anti-dilutive. |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities: | ||
Net cash used in operating activities (Note 18) | $ (5,545) | $ (8,740) |
Cash flows from investing activities: | ||
Proceeds from sale of assets | 301 | 1 |
Capitalized costs and acquisitions of property, plant and equipment | (44) | (7) |
Net cash provided by (used in) investing activities | 257 | (6) |
Net decrease in cash and cash equivalents | (5,288) | (8,746) |
Cash and cash equivalents - beginning of period | 8,579 | 19,146 |
Cash and cash equivalents - end of period | $ 3,291 | $ 10,400 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive income (loss) | Total |
Balance at Dec. 31, 2013 | $ 435 | $ 494,647 | $ (448,626) | $ 46,456 | |
Balance (in shares) at Dec. 31, 2013 | 43,530,833 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Stock compensation accrued | $ 2 | 924 | 926 | ||
Stock compensation accrued (in shares) | 140,000 | ||||
KELTIP mark-to-market | 12 | 12 | |||
Registered offering stock units, net (Note 14) | $ 37 | 1,502 | 1,539 | ||
Registered offering stock units, net (Note 14) (shares) | 3,692,000 | ||||
Private placement stock units, net (Note 14) | $ 58 | 2,729 | 2,787 | ||
Private placement stock units, net (Note 14) (shares) | 5,800,000 | ||||
Reclassification to reflect warrant liability (Note 14) | (15,617) | 15,454 | (163) | ||
Net loss | (18,823) | (18,823) | |||
Balance at Dec. 31, 2014 | $ 532 | 484,197 | (451,995) | 32,734 | |
Balance (in shares) at Dec. 31, 2014 | 53,162,833 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Stock compensation accrued | 273 | 273 | |||
KELTIP mark-to-market | 33 | 33 | |||
Unrealized loss on marketable securities, net of tax | $ (37) | (37) | |||
Net loss | (7,281) | (7,281) | |||
Balance at Jun. 30, 2015 | $ 532 | $ 484,503 | $ (459,276) | $ (37) | $ 25,722 |
Balance (in shares) at Jun. 30, 2015 | 53,162,833 |
Basis of Preparation of Financi
Basis of Preparation of Financial Statements and Nature of Operations | 6 Months Ended |
Jun. 30, 2015 | |
Basis of Preparation of Financial Statements and Nature of Operations | |
Basis of Preparation of Financial Statements and Nature of Operations | 1. Basis of Preparation of Financial Statements and Nature of Operations Golden Minerals Company (the “Company”), a Delaware corporation, has prepared these unaudited interim condensed consolidated financial statements in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). Such rules and regulations allow the omission of certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”), so long as such omissions do not render the financial statements misleading. The year-end balance sheet data was derived from audited financial statements, but does not include all disclosures normally required by GAAP. In the opinion of management, these financial statements reflect all adjustments that are necessary for a fair presentation of the financial results for the periods presented. These interim financial statements should be read in conjunction with the annual financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014, and filed with the SEC on February 27, 2015. Golden Minerals Company is a mining company, holding a 100% interest in the Velardeña and Chicago precious metals mining properties in Mexico (the “Velardeña Properties”). The Company is primarily focused on efforts to optimize mining and processing activities at the Velardeña Properties in order to achieve positive net cash flows at the Velardeña Properties. The Company has leased its oxide plant to a third party and remains also focused on establishing a second group of mining assets, which may include those recently acquired assets in the Parral District in Chihuahua State, Mexico, in order to generate sufficient revenue, along with revenue from the Velardeña Properties, to fund continuing business activities. The Company is continuing its exploration efforts on selected properties in its portfolio of approximately 10 exploration properties located primarily in Mexico. It continues to hold its El Quevar property on care and maintenance and to reduce holding costs until it can find a partner to further advance the project. 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 SEC as the Company has not yet demonstrated the existence of proven or probable mineral reserves, as defined by SEC Industry Guide 7, at the Velardeña Properties, or any of the Company’s other properties. As a result, and in accordance with 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 mineral 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”. The Company recommenced mining activities at the Velardeña Properties in July 2014 and began processing material from the mine in November 2014. During 2014 and the first six months of 2015 the Company focused primarily on mining material from the San Mateo, Terneras and Roca Negra vein systems. Average grades in the three months ended June 30, 2015 were 169 grams per tonne (“gpt”) silver and 2.8 gpt gold, with payable metals generated from the processing facilities of approximately 125,000 payable silver equivalent ounces. These amounts were similar to the average grades for the three months ended March 31, 2015 of 178 gpt silver and 2.7 gpt gold and the total of approximately 126,000 payable silver equivalent ounces. (Silver equivalent ounces include silver and gold but exclude lead and zinc and are calculated at a ratio of 70 silver ounces to 1 gold ounce.) During the second quarter 2015 the mill continued to ramp up, achieving processing rates on days of operation that were consistently higher than the stated capacity of 285 tonnes per day (“tpd”). However, a lack of plant feed due to a lower mining rate in the second quarter resulted in the plant achieving only 222 tpd during the period, slightly lower than the previous quarter rate of 236 tpd. In the second quarter 2015, the Company sold approximately 133,000 payable silver equivalent ounces, a slight decline from the approximately 139,000 ounces of payable silver equivalent ounces sold in the first quarter. 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 Note 8 are dependent on the ability of the Company to generate positive cash flows from operations and to continue to fund exploration and development activities that would lead to profitable mining activities or to generate 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. |
Liquidity, Capital Resources an
Liquidity, Capital Resources and Going Concern | 6 Months Ended |
Jun. 30, 2015 | |
Liquidity, Capital Resources and Going Concern | |
Liquidity, Capital Resources and Going Concern | 2. Liquidity, Capital Resources and Going Concern At June 30, 2015 the Company’s aggregate cash and cash equivalents totaled $3.3 million. Assuming metals prices of $16.00 per ounce of silver and $1,125 per ounce of gold, the Company expects that the Velardeña Properties will generate a near breakeven operating margin through the second half of 2015. The recently executed lease of the oxide plant will contribute approximately $0.2 million in net cash flow during the second half of 2015. During 2016, leasing the oxide plant should generate between $4.0 and $5.0 million of net cash flow. With the cash balance at June 30, 2015, the assumptions described below, and in the absence of additional funding from outside sources, the Company expects to end 2015 with a near zero cash balance. The actual amount that the Company spends in the second half of 2015 and the projected yearend cash balance may vary significantly from the amounts specified above and will depend on a number of factors, including metals prices, higher than anticipated and unexpected costs associated with mining and processing at the Velardeña Properties and the results of continued project assessment work at our other exploration properties. The Company’s projected cash balance at the end of 2015 is not sufficient to provide adequate reserves in the event of decreasing metals prices or interruptions in mining and processing at the Velardeña Properties, or to adequately pursue further exploration of its properties in Mexico and requires the Company to seek additional funding from equity or debt. There can be no assurance that the Company will be successful in obtaining sufficient funding from any of these actions or sources in the future on terms acceptable to the Company or at all. The Company’s cash and cash equivalents balance at June 30, 2015 of $3.3 million is $5.3 million lower than the $8.6 million in similar assets held at December 31, 2014 due primarily to negative operating margin (defined as revenues less costs of sales) at the Velardeña Properties of $1.5 million, $2.2 million in other exploration expenditures, $0.7 million in maintenance and property holding costs at the El Quevar project and $2.3 million in general and administrative expenses, offset in part by $0.4 million of proceeds from sales of non strategic property and equipment, a $1.0 million reduction in working capital and other items primarily due to collections of value added tax (“VAT”) receivables, decreases in product inventories and an increase in accounts payable associated with mining and processing activities at the Velardeña Properties. With the cash balance at June 30, 2015 of $3.3 million and a near breakeven operating margin from the Velardeña Properties for the remainder of 2015, assuming metals prices of $16.00 per ounce of silver and $1,125 per ounce of gold and approximately 400,000 payable silver equivalent ounces from mining activities, the Company plans to spend the following amounts totaling approximately $3.2 million during the remainder of 2015. · Approximately $0.3 million at the El Quevar project to fund ongoing maintenance activities and property holding costs; · Approximately $1.0 million on other exploration activities and property holding costs related to the Company’s portfolio of exploration properties located primarily in Mexico; and · Approximately $2.0 million on general and administrative costs offset by $0.1 million in decreased working capital primarily related to collection of VAT receivables at the Velardeña Properties. In arriving at the forecast for a cash balance of near zero at the end of 2015, the Company assumed silver and gold prices of $16.00 and $1,125 per ounce, respectively. For the remainder of 2015, a 10 percent change in the price per ounce of silver would have an approximate $0.4 million impact (positive or negative) on the Company’s cash balance at the end of 2015. A 10 percent change in the price per ounce of gold would have an approximate $0.3 million impact (positive or negative) on the Company’s cash balance at the end of 2015. |
New Accounting Pronouncements
New Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2015 | |
New Accounting Pronouncements | |
New Accounting Pronouncements | 3. New Accounting Pronouncements On August 27, 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-15, “ Presentation of Financial Statements - Going Concern (Subtopic 205-40), Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern” (“ASU No. 2014-15”). ASU No. 2014-15 will require management to evaluate whether there are conditions and events that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the financial statements are issued on both an interim and annual basis. Management will be required to provide certain footnote disclosures if it concludes that substantial doubt exists or when its plans alleviate substantial doubt about the Company’s ability to continue as a going concern. ASU No. 2014-15 becomes effective for annual periods beginning in 2016 and for interim reporting periods starting in the first quarter of 2017. The Company does not expect the adoption of this amendment to have a material impact on its consolidated financial position or results of operations. On May 28, 2014, FASB and the International Accounting Standards Board issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”). ASU 2014-09 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. In addition, the guidance requires improved disclosures to help users of financial statements better understand the nature, amount, timing and uncertainty of revenue that is recognized and the related cash flows. ASU 2014-09 is effective for interim and annual periods beginning after December 15, 2016; early application is not permitted. The Company is evaluating the financial statement implications of adopting ASU 2014-09 but does not believe adoption of ASU 2014-09 will have a material impact on its consolidated financial position or results of operations. On April 10, 2014, FASB issued ASU No. 2014-08 “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity” (“ASU 2014-08)”. ASU 2014-08 changes the criteria for reporting discontinued operations while enhancing disclosures in this area. Under ASU 2014-08, only disposals representing a strategic shift in operations will be presented as discontinued operations. Additionally, ASU 2014-08 requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. ASU 2014-08 became effective for the Company January 1, 2015. The Company does not believe the adoption of ASU 2014-08 will have a material impact on the Company’s consolidated financial position or results of operations. |
Cash and Cash Equivalents and S
Cash and Cash Equivalents and Short-term Investments | 6 Months Ended |
Jun. 30, 2015 | |
Cash and Cash Equivalents and Short-term Investments | |
Cash and Cash Equivalents and Short-term Investments | 4. Cash and Cash Equivalents and Short-term 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 three months, but not exceeding 12 months, or highly liquid investments with maturities greater than 12 months that the Company intends to liquidate during the next 12 months for working capital needs. The Company determines the appropriate classification of its investments in equity securities at the time of acquisition and re-evaluates those classifications at each balance sheet date. Available for sale investments are marked to market at each reporting period with changes in fair value recorded as a component of other comprehensive income (loss). If declines in fair value are deemed other than temporary, a charge is made to net income (loss) for the period. The following tables summarize the Company’s short-term investments at June 30, 2015: June 30, 2015 Cost Estimated Fair Value Carrying Value (in thousands) Investments: Short-term: Available for sale common stock $ $ $ Total available for sale Total short term $ $ $ The available for sale common stock consists of 5,000,000 shares of a junior mining company received during the first quarter 2015 in a transaction involving the Company’s 50% interest in the San Diego exploration property in Mexico. The Company received shares in the junior mining company that holds the other 50% interest in the property in exchange for extending by two years from March 24, 2015 the period of time in which the junior mining company can earn an additional 10% interest in the property by completing an additional $0.8 million of exploration work. The shares were issued with a restriction requiring the Company to hold the shares for a minimum of four months. Following the receipt of the shares the Company owns approximately 9% of the outstanding shares of the junior mining company. The extension agreement was executed on March 23, 2015 and the value of shares on that date was recorded by the Company as a short-term investment using quoted market prices. See Note 12 for further discussion on the fair value measurement techniques used by the Company to value the above investments. The Company had no short-term investments at December 31, 2014. |
Prepaid Expenses and Other Asse
Prepaid Expenses and Other Assets | 6 Months Ended |
Jun. 30, 2015 | |
Prepaid Expenses and Other Assets | |
Prepaid Expenses and Other Assets | 5. Prepaid Expenses and Other Assets Prepaid expenses and other current assets consist of the following: June 30, December 31, 2015 2014 (in thousands) Prepaid insurance $ $ Prepaid contractor fees and vendor advances Taxes recievable Recoupable deposits and other $ $ 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. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2015 | |
Inventories | |
Inventories | 6. Inventories Inventories at the Velardeña Properties at June 30, 2015 and December 31, 2014 consist of the following: June 30, December 31, 2015 2014 (in thousands) Metals inventory $ $ In-process inventory Material and supplies $ $ $ $ For the six months ended June 30, 2015 the Company had written down its metals and in-process inventories to net realizable value including a charge to cost of metals sold of approximately $0.2 million. For the year ended December 31, 2014 the Company had written down its metals and in-process inventories to net realizable value including a charge to cost of metals sold of $1.2 million and a charge to depreciation expense of approximately $0.7 million. |
Value Added Tax Receivable, Net
Value Added Tax Receivable, Net | 6 Months Ended |
Jun. 30, 2015 | |
Value Added Tax Receivable, Net | |
Value Added Tax Receivable, Net | 7. Value Added Tax Receivable, Net The Company has recorded 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,
Property, Plant and Equipment, Net | 6 Months Ended |
Jun. 30, 2015 | |
Property, Plant and Equipment, Net | |
Property, Plant and Equipment, Net | 8. Property, Plant and Equipment, Net The components of property, plant and equipment are as follows: June 30, December 31, 2015 2014 (in thousands) Mineral properties $ $ Exploration properties Royalty properties Buildings Mining equipment and machinery Other furniture and equipment Asset retirement cost Less: Accumulated depreciation and amortization ) ) The asset retirement cost (“ARC”) is all related to the Company’s Velardeña Properties. The decrease in the ARC during the period is related to an adjustment to the asset retirement obligation (“ARO”) (see Note 10). |
Accounts Payable and Other Accr
Accounts Payable and Other Accrued Liabilities | 6 Months Ended |
Jun. 30, 2015 | |
Accounts Payable and Other Accrued Liabilities | |
Accounts Payable and Other Accrued Liabilities | 9. Accounts Payable and Other Accrued Liabilities The Company’s accounts payable and other accrued liabilities consist of the following: June 30, December 31, 2015 2014 (in thousands) Accounts payable and accruals $ $ Accrued employee compensation and benefits $ $ June 30, 2015 Accounts payable and accruals at June 30, 2015 are primarily related to amounts due to contractors and suppliers in the amounts of $0.8 million and $0.1 million related to the Company’s Velardeña Properties and corporate administrative activities, respectively. In the case of the Velardeña Properties, amounts due also include VAT payable that is not an offset to the VAT receivable. Accrued employee compensation and benefits at June 30, 2015 consist of $0.2 million of accrued vacation payable and $0.6 million related to withholding taxes and benefits payable, of which $0.4 million is related to activities at the Velardeña Properties. December 31, 2014 Accounts payable and accruals at December 31, 2014 are primarily related to amounts due to contractors and suppliers in the amounts of $0.7 million and $0.2 million related to the Company’s Velardeña Properties and corporate administrative activities, respectively. In the case of the Velardeña Properties, amounts due also include VAT payable that is not an offset to the VAT receivable. Accrued employee compensation and benefits at December 31, 2014 consist of $0.1 million of accrued vacation payable and $0.6 million related to withholding taxes and benefits payable, of which $0.3 million is related to activities at the Velardeña Properties. Key Employee Long-Term Incentive Plan In December 2013, the Board of Directors of the Company approved and the Company adopted the 2013 Key Employee Long-Term Incentive Plan (the “KELTIP”). 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 the Company’s Amended and Restated 2009 Equity Incentive Plan, at the option of the Board of Directors, measured generally by the price of the Company’s common stock on the settlement date. KELTIP Units are not actual equity interests 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. The KELTIP Units are marked to market at the end of each reporting period. At June 30, 2015 and December 31, 2014 the Company had recorded liabilities of approximately $60,000 and $93,000, respectively, related to KELTIP Unit grants which are included in accrued employee compensation and benefits in the table above. |
Asset Retirement Obligations
Asset Retirement Obligations | 6 Months Ended |
Jun. 30, 2015 | |
Asset Retirement Obligations | |
Asset Retirement Obligations | 10. Asset Retirement Obligations The Company retained the services of a mining engineering firm to prepare a detailed closure plan for the Velardeña Properties. The plan was completed during the second quarter 2012 and indicated that the Company had an ARO and offsetting ARC of approximately $1.9 million. The estimated $3.5 million ARO and ARC that was recorded at the time of the acquisition of the Velardeña Properties was adjusted accordingly. The Company will continue to accrue additional estimated ARO amounts based on an asset retirement plan as activities requiring future reclamation and remediation occur. During the first six months of 2015 the Company recognized approximately $0.1 million of accretion expense and approximately $0.1 million of amortization expense related to the ARC. The following table summarizes activity in the Velardeña Properties ARO: Six Months Ended June 30, 2015 2014 (in thousands) Beginning balance $ $ Changes in estimates, and other ) ) Accretion expense Ending balance $ $ The decreases in the ARO recorded during the 2014 and 2015 periods are the result of changes in assumptions related to inflation factors and the timing of future expenditures used in the determination of future cash flows. The ARO set forth on the accompanying Condensed Consolidated Balance Sheets at June 30, 2015 and December 31, 2014 includes approximately $0.1 million of reclamation liabilities related to activities at the El Quevar project in Argentina. |
Other Liabilities
Other Liabilities | 6 Months Ended |
Jun. 30, 2015 | |
Other Liabilities | |
Other Liabilities | 11. Other Liabilities The Company recorded other current liabilities of approximately $1.4 million and $2.6 million at June 30, 2015 and December 31, 2014, respectively. The amounts include a loss contingency of $0.9 million and $2.2 million at June 30, 2015 and December 31, 2014, respectively for 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 amounts include estimated interest, penalties and other adjustments. The June 30, 2015 and December 31, 2014 amounts also include a net liability of approximately $0.5 million related to the Argentina tax on equity due for years 2009 through 2012 stemming from a tax audit of those years. The amount includes interest and penalties and is net of certain VAT credits due the Company. The tax authorities have agreed in principle to offset a portion of the $1.1 million in tax, interest and penalties with approximately $0.6 million of VAT credits due the Company. Should the Argentina tax authorities ultimately not allow a portion or all of the VAT credits as an offset, the liability could increase by as much as $0.6 million (see Note 19). |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Measurements | |
Fair Value Measurements | 12. Fair Value Measurements Financial assets and liabilities and nonfinancial assets and liabilities are measured at fair value 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 following table summarizes the Company’s financial assets and liabilities at fair value on a recurring basis at June 30, 2015 and December 31, 2014, by respective level of the fair value hierarchy: Level 1 Level 2 Level 3 Total (in thousands) At June 30, 2015 Assets: Cash and cash equivalents $ $ — $ — $ Short-term investments — — Trade accounts receivable — — $ $ — $ — $ Liabilities: KELTIP liability $ $ — $ — $ Warrant liability — — $ $ — $ $ At December 31, 2014 Assets: Cash and cash equivalents $ $ — $ — $ Liabilities: KELTIP liability $ $ — $ — $ Warrant liability — — $ $ — $ $ 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 investments consist of available for sale common stock of a junior mining company for which quoted prices exist in an active market and are also classified within Level 1 (see Note 4). 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 its Velardeña Properties and is valued at published metals prices per the terms of the refining and smelting agreements. The KELTIP liabilities are related to employee and officer compensation as discussed in Note 9 and are marked to market at the end of each period based on the closing price of the Company’s common stock resulting in a classification of Level 1 within the fair value hierarchy. At June 30, 2015 and December 31, 2014 the Company has recorded a liability for warrants to acquire the Company’s stock as a result of anti-dilution clauses in the warrant agreements that could result in a resetting of the warrant exercise price in the event the Company were to issue additional shares of its common stock in a future transaction at an offering price lower than the current exercise price of the warrants (see Note 14). The Company assesses the fair value of its warrant liability at the end of each reporting period, with changes in the value recorded as a separate line item on the Company’s Condensed Consolidated Statements of Operations and Comprehensive Loss. 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. The warrant liability has been recorded at fair value as of June 30, 2015 and December 31, 2014 based primarily on a valuation performed by a third party expert using a Monte Carlo simulation, which falls within Level 3 of the fair value hierarchy. The valuation model takes into account the probability that the Company could issue additional shares in a future transaction at a lower price than the current exercise price of the warrants. In addition to the warrant exercise prices (see Note 14) other significant inputs to the valuation model included the following: June 30, December 31, 2015 2014 Company’s ending stock price $ $ Company’s stock volatility % % Applicable risk free interest rate % % An increase or decrease in the Company’s stock price, in isolation, would result in a relatively lower or higher fair value measurement respectively. A decrease in the probability of the issuance of additional common stock at a lower price than the current warrant exercise price would result in a lower value for the warrants. The table below highlights the change in fair value of the warrant liability. Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Warrant Liabilities (in thousands) Beginning balance at January 1, 2015 $ Change in estimated fair value ) Ending balance at June 30, 2015 $ Non-recurring Fair Value Measurements There were no non-recurring fair value measurements at June 30, 2015 and December 31, 2014. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2015 | |
Income Taxes | |
Income Taxes | 13. 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. For the six months ended June 30, 2015 and June 30, 2014 the Company had no income tax benefit or expense. The Company operates in jurisdictions that have generated ordinary losses on a year-to-date basis, however, the Company is unable to recognize a benefit for those losses, thus an estimated effective tax rate has not been used to report the year-to-date results. In accordance with ASC 740, the Company presents deferred tax assets net of its deferred tax liabilities on a tax jurisdictional basis on its Condensed Consolidated Balance Sheets. As of June 30, 2015 and as of December 31, 2014, the Company had no net deferred tax assets or net deferred tax liabilities reported on its balance sheet. 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 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 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. The Company had no unrecognized tax benefits at June 30, 2015 or December 31, 2014. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2015 | |
Equity | |
Equity | 14. Equity Registered offering On September 10, 2014 the Company completed a registered public offering (the “Offering”) of 3,692,000 units (the “Units”), with each Unit consisting of one share of the Company’s common stock (the “Shares”) and a warrant to purchase .50 of a share of the Company’s common stock (the “Warrants”). Each Unit was priced at $0.86 per Unit, before discount to the underwriters. The Warrants became exercisable on March 11, 2015 at an exercise price of $1.21 per share and will expire on September 10, 2019, five years from the date of issuance. The Shares and the Warrants were immediately separable and were issued separately. The Company received net proceeds from the Offering of approximately $2.7 million after the underwriter commissions and expenses of approximately $0.5 million. In arriving at the value of the Shares and Warrants the Company first valued and recorded the Warrants as a liability on the balance sheet as a result of anti-dilution clauses in the warrant agreements that could result in a resetting of the warrant exercise price in the event the Company were to issue additional shares of its common stock in a future transaction at an offering price lower than the current exercise price of the warrants. A third party expert determined a value for the Warrants at September 4, 2014, the date prior to the announcement of the Offering, using a Monte Carlo simulation, which falls within Level 3 of the fair value hierarchy (see Note 12). The valuation model takes into account the probability that the Company could issue additional shares in a future transaction at a lower price than the current exercise price of the Warrants. Significant inputs to the valuation model included the Company’s closing stock price at September 4, 2014 of $1.01, the exercise price for the Warrants disclosed above, the Company’s stock volatility measured as of September 4, 2014, the applicable risk free interest rate of 1.6%, and the probability of an additional issuance of the Company’s common stock at a lower price than the current warrant exercise price. The fair value of the Warrants on the date of issuance was determined to be $1.2 million, with the remaining $1.5 million of net proceeds from the Offering being allocated to additional paid in capital. The warrants were revalued as at June 30, 2015 and December 31, 2014 (see Note 12). Private placement On September 10, 2014 the Company also completed a private placement (the “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 5,800,000 Units (the “Private Placement Units”), with each Private Placement Unit consisting of one share of the Company’s common stock and a warrant to purchase one half of a share of the Company’s common stock. The Warrants became exercisable on March 11, 2015 at an exercise price of $1.21 per share and will expire on September 10, 2019, five years from the date of issuance. Each Private Placement Unit was priced at $0.817, the same discounted price paid by the underwriters in the Offering. The Company received net proceeds from the Private Placement of approximately $4.7 million after the discount and expenses of approximately $0.3 million. Following the completion of the Private Placement and the Offering, Sentient holds approximately 27.2% (on a non-diluted basis) of the Company’s outstanding common stock (excluding restricted common stock held by the Company’s employees and shares of common stock issuable upon exercise of outstanding warrants). In arriving at the value of the Shares and Warrants the Company first valued and recorded the Warrants as a liability on the balance sheet as a result of anti-dilution clauses in the warrant agreements that could result in a resetting of the warrant exercise price in the event the Company were to issue additional shares of its common stock in a future transaction at an offering price lower than the current exercise price of the warrants. A third party expert determined a value for the Warrants at September 4, 2014, the date prior to the announcement of the Offering, using a Monte Carlo simulation, which falls within Level 3 of the fair value hierarchy (see Note 12). The valuation model takes into account the probability that the Company could issue additional shares in a future transaction at a lower price than the current exercise price of the Warrants. Significant inputs to the valuation model included the Company’s closing stock price at September 4, 2014 of $1.01, the exercise price for the Warrants disclosed above, the Company’s stock volatility measured as of September 30, 2014, the applicable risk free interest rate of 1.6%, and the probability of an additional issuance of the Company’s common stock at a lower price than the current warrant exercise price. The fair value of the Warrants on the date of issuance was determined to be $1.9 million, with the remaining $2.7 million of net proceeds from the Offering being allocated to additional paid in capital. The warrants were revalued as at June 30, 2015 and December 31, 2014 (see Note 12). Equity Incentive Plans In May 2014, the Company’s stockholders approved amendments to the Company’s 2009 Equity Incentive Plan, adopting the Amended and Restated 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 June 30, 2015 and the changes during the six months then ended: Restricted Stock Grants Number of Shares Weighted Average Grant Date Fair Value Per Share Outstanding at December 31, 2014 $ Granted during the period — — Restrictions lifted during the period ) Forfeited during the period — — Outstanding at June 30, 2015 $ Restrictions were lifted on 8,833 shares during the six months ended June 30, 2015 on the anniversaries of grants made to officers and employees in prior years. For the six months ended June 30, 2015 the Company recognized approximately $0.1 million of compensation expense related to the restricted stock grants. The Company expects to recognize additional compensation expense related to these awards of approximately $0.1 million over the next 18 months. The following table summarizes the status of the Company’s stock option grants issued under the Equity Plan at June 30, 2015 and the changes during the six months then ended: Equity Plan Options Number of Shares Weighted Average Exercise Price Per Share Outstanding at December 31, 2014 $ Granted during period — — Forfeited or expired during period — — Exercised during period — — Outstanding at June 30, 2015 Exercisable at end of period Granted and vested 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 June 30, 2015 and the changes during the six months then ended: Restricted Stock Units Number of Shares Weighted Average Grant Date Fair Value Per Share Outstanding at December 31, 2014 $ Granted during the period Restrictions lifted during the period — — Forfeited during the period — — Outstanding at June 30, 2015 $ For the six months ended June 30, 2015 the Company recognized approximately $89,000 of compensation expense related to the RSU grants. The Company expects to recognize additional compensation expense related to the RSU grants of approximately $92,000 over the next 12 months. Pursuant to the KELTIP (see Note 9) KELTIP Units may be granted 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 measured generally by the price of the Company’s common stock on the settlement date. The KELTIP Units are recorded as a liability as discussed in detail in Note 9. Common stock warrants The following table summarizes the status of the Company’s common stock warrants at June 30, 2015 and the changes during the six months then ended: Common Stock Warrants Number of Underlying Shares Weighted Average Exercise Price Per Share Outstanding at December 31, 2014 $ Granted during period — — Dilution adjustment — — Expired during period — — Exercised during period — — Outstanding at June 30, 2015 $ The warrants relate to prior registered offerings and private placements of the Company’s stock. In September 2012, the Company closed on a registered offering and concurrent private placement with Sentient in which it sold units, consisting of one share of common stock and a five-year warrant to acquire one half of a share of common stock at an exercise price of $8.42 per share. Pursuant to certain dilution adjustment provisions in the warrant agreement governing the September 2012 warrants, the number of shares of common stock issuable upon exercise of the September 2012 warrants was increased from 3,431,649 shares to 4,031,409 shares (599,760 share increase) and the exercise price was reduced from $8.42 per share to $7.17 per share pursuant to a weighted average dilution calculation based on the pricing of the September 2014 Offering and the Private Placement. As described in more detail above, on September 10, 2014 the Company closed on a registered public offering and concurrent private placement with Sentient in which it sold units, consisting of one share of common stock and a five-year warrant to acquire one half of a share of common stock at an exercise price of $1.21 per share. A total of 4,746,000 warrants were issued that became exercisable on March 11, 2015 and will expire on September 10, 2019, five years from the date of issuance. The warrants issued in September 2012 and September 2014 are being recorded as a liability on the balance sheet as a result of anti-dilution clauses in the warrant agreements that could result in a resetting of the warrant exercise price in the event the Company were to issue additional shares of its common stock in a future transaction at an offering price lower than the current exercise price of the warrants. At June 30, 2015 the total liability for the warrants was $0.7 million, consisting of $0.7 million for the 2014 warrants and only a nominal amount for the 2012 warrants. The warrant liability has been recorded at fair value as of June 30, 2015 based primarily on a valuation performed by a third party expert using a Monte Carlo simulation, which falls within Level 3 of the fair value hierarchy (see Note 12). |
Sale of Metals and Related Cost
Sale of Metals and Related Costs | 6 Months Ended |
Jun. 30, 2015 | |
Sale of Metals and Related Costs | |
Sale of Metals and Related Costs | 15. Sale of Metals and Related Costs During the six months ended June 30, 2015 the Company sold marketable lead and zinc concentrates from its Velardeña Properties to two customers. Under the terms of the Company’s agreements with its concentrate customers, title 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 June 30, 2015 the Company had written down its metals and in-process inventories to net realizable value including a charge to the cost of metals sold of approximately $0.2 million. At December 31, 2014 the Company had written down its metals and in-process inventories to net realizable value including a charge to the cost of metals sold of approximately $1.2 million and a charge to depreciation expense of approximately $0.7 million. During the six months ended June 30, 2014 the Company did not sell any products or incur any related costs as the result of a suspension of mining and processing effective June 19, 2013 (see Note 1). |
Interest and Other Income
Interest and Other Income | 6 Months Ended |
Jun. 30, 2015 | |
Interest and Other Income | |
Interest and Other Income | 16. Interest and Other Income For the six months ended June 30, 2015 and 2014 the Company reported other income of $1.4 million and $0.9 million respectively related primarily to the reduction of a loss contingency liability related 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 (see Note 11). |
Warrant Derivative Gain
Warrant Derivative Gain | 6 Months Ended |
Jun. 30, 2015 | |
Warrant Derivative Gain. | |
Warrant Derivative Gain | 17. Warrant Derivative Gain During the six months ended June 30, 2015 the Company recorded approximately $0.9 million of other income related to an decrease in the fair value of the liability recorded for warrants to acquire the Company’s stock (see Note 14). The warrant liability has been recorded at fair value as of June 30, 2015 based primarily on a valuation performed by a third party expert using a Monte Carlo simulation, which falls within Level 3 of the fair value hierarchy (see Note 12). The valuation model takes into account the probability that the Company could issue additional shares in a future transaction at a lower price than the current exercise price of the warrants. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 6 Months Ended |
Jun. 30, 2015 | |
Supplemental Cash Flow Information | |
Supplemental Cash Flow Information | 18. Supplemental Cash Flow Information The following table reconciles net loss for the period to cash used in operations: Six Months Ended June 30, 2015 2014 (in thousands) Cash flows from operating activities: Net loss $ ) $ ) Adjustments to reconcile net loss to net cash used in operating activities: Amortization and depreciation Accretion of asset retirement obligation Decrease in warrant liability ) — Foreign currency gain (loss) contingency ) Asset write off Write off of loss contingencies ) ) Gain on sale of assets, net ) ) Stock compensation Changes in operating assets and liabilities: (Increase) decrease in trade accounts receivable ) Decrease in prepaid expenses and other assets Decrease in inventories Decrease (increase) in value added tax recoverable, net ) Decrease in reclamation liability ) ) Increase in accounts payable and accrued liabilities Increase (decrease) in deferred leasehold payments ) Net cash used in operating activities $ ) $ ) |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies | |
Commitments and Contingencies | 19. Commitments and Contingencies The Company has recorded loss contingencies of approximately $1.4 million and $2.6 million at June 30, 2015 and December 31, 2014, respectively as discussed in Note 11. In addition to the amounts recorded, the Company could be liable for up to an additional $0.6 million stemming from a tax audit of the Argentina equity tax for years 2009 through 2012 subject to the Argentina tax authorities’ acceptance of VAT credits to partially offset the tax liability (see Note 11). |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2015 | |
Segment Information | |
Segment Information | 20. 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: Three Months Ended June 30, 2015 Revenue Costs Applicable to Sales Depreciation, Depletion and Amortization Exploration, El Quevar, Velardeña and Administrative Expense Pre-Tax loss Total Assets Capital Expenditures Velardeña Mine $ $ $ $ — $ $ Corporate, Exploration & Other — — $ $ $ $ $ $ Six Months Ended June 30, 2015 Velardeña Mine $ $ $ $ $ $ $ Corporate, Exploration & Other — — $ $ $ $ $ $ $ Three Months Ended June 30, 2014 Velardeña Mine $ — $ — $ $ $ $ — Corporate, Exploration & Other — — — $ — $ — $ $ $ $ — Six Months Ended June 30, 2014 Velardeña Mine $ — $ — $ $ $ $ $ — Corporate, Exploration & Other — — $ — $ — $ $ $ $ $ |
Cash and Cash Equivalents and27
Cash and Cash Equivalents and Short-term Investments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Cash and Cash Equivalents and Short-term Investments | |
Schedule of short term investments | June 30, 2015 Cost Estimated Fair Value Carrying Value (in thousands) Investments: Short-term: Available for sale common stock $ $ $ Total available for sale Total short term $ $ $ |
Prepaid Expenses and Other As28
Prepaid Expenses and Other Assets (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Prepaid Expenses and Other Assets | |
Schedule of prepaid expenses and other current assets | June 30, December 31, 2015 2014 (in thousands) Prepaid insurance $ $ Prepaid contractor fees and vendor advances Taxes recievable Recoupable deposits and other $ $ |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Inventories | |
Schedule of inventories at the Velardena Properties | June 30, December 31, 2015 2014 (in thousands) Metals inventory $ $ In-process inventory Material and supplies $ $ $ $ |
Property, Plant and Equipment30
Property, Plant and Equipment, Net (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Property, Plant and Equipment, Net | |
Schedule of components of property, plant and equipment | June 30, December 31, 2015 2014 (in thousands) Mineral properties $ $ Exploration properties Royalty properties Buildings Mining equipment and machinery Other furniture and equipment Asset retirement cost Less: Accumulated depreciation and amortization ) ) |
Accounts Payable and Other Ac31
Accounts Payable and Other Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Accounts Payable and Other Accrued Liabilities | |
Schedule of accounts payable and other accrued liabilities | June 30, December 31, 2015 2014 (in thousands) Accounts payable and accruals $ $ Accrued employee compensation and benefits $ $ |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Asset Retirement Obligations | |
Summary of activity in the Velardena Properties ARO | Six Months Ended June 30, 2015 2014 (in thousands) Beginning balance $ $ Changes in estimates, and other ) ) Accretion expense Ending balance $ $ |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Measurements | |
Schedule of financial assets and liabilities at fair value by respective level of the fair value hierarchy | Level 1 Level 2 Level 3 Total (in thousands) At June 30, 2015 Assets: Cash and cash equivalents $ $ — $ — $ Short-term investments — — Trade accounts receivable — — $ $ — $ — $ Liabilities: KELTIP liability $ $ — $ — $ Warrant liability — — $ $ — $ $ At December 31, 2014 Assets: Cash and cash equivalents $ $ — $ — $ Liabilities: KELTIP liability $ $ — $ — $ Warrant liability — — $ $ — $ $ |
Schedule of significant inputs to the valuation model | June 30, December 31, 2015 2014 Company’s ending stock price $ $ Company’s stock volatility % % Applicable risk free interest rate % % |
Summary of change in fair value of the warrant liability | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Warrant Liabilities (in thousands) Beginning balance at January 1, 2015 $ Change in estimated fair value ) Ending balance at June 30, 2015 $ |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Equity | |
Schedule of status of the restricted stock grants issued under the Equity Plan | Restricted Stock Grants Number of Shares Weighted Average Grant Date Fair Value Per Share Outstanding at December 31, 2014 $ Granted during the period — — Restrictions lifted during the period ) Forfeited during the period — — Outstanding at June 30, 2015 $ |
Schedule of status of the stock option grants issued under the Equity Plan | Equity Plan Options Number of Shares Weighted Average Exercise Price Per Share Outstanding at December 31, 2014 $ Granted during period — — Forfeited or expired during period — — Exercised during period — — Outstanding at June 30, 2015 Exercisable at end of period Granted and vested |
Schedule of status of the RSU grants issued under the Deferred Compensation Plan | Restricted Stock Units Number of Shares Weighted Average Grant Date Fair Value Per Share Outstanding at December 31, 2014 $ Granted during the period Restrictions lifted during the period — — Forfeited during the period — — Outstanding at June 30, 2015 $ |
Summary of the status of the Company's common stock warrants | Common Stock Warrants Number of Underlying Shares Weighted Average Exercise Price Per Share Outstanding at December 31, 2014 $ Granted during period — — Dilution adjustment — — Expired during period — — Exercised during period — — Outstanding at June 30, 2015 $ |
Supplemental Cash Flow Inform35
Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Supplemental Cash Flow Information | |
Schedule of reconciles net loss for the period to cash from operations | Six Months Ended June 30, 2015 2014 (in thousands) Cash flows from operating activities: Net loss $ ) $ ) Adjustments to reconcile net loss to net cash used in operating activities: Amortization and depreciation Accretion of asset retirement obligation Decrease in warrant liability ) — Foreign currency gain (loss) contingency ) Asset write off Write off of loss contingencies ) ) Gain on sale of assets, net ) ) Stock compensation Changes in operating assets and liabilities: (Increase) decrease in trade accounts receivable ) Decrease in prepaid expenses and other assets Decrease in inventories Decrease (increase) in value added tax recoverable, net ) Decrease in reclamation liability ) ) Increase in accounts payable and accrued liabilities Increase (decrease) in deferred leasehold payments ) Net cash used in operating activities $ ) $ ) |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Information | |
Schedule of financial information relating to segments | Three Months Ended June 30, 2015 Revenue Costs Applicable to Sales Depreciation, Depletion and Amortization Exploration, El Quevar, Velardeña and Administrative Expense Pre-Tax loss Total Assets Capital Expenditures Velardeña Mine $ $ $ $ — $ $ Corporate, Exploration & Other — — $ $ $ $ $ $ Six Months Ended June 30, 2015 Velardeña Mine $ $ $ $ $ $ $ Corporate, Exploration & Other — — $ $ $ $ $ $ $ Three Months Ended June 30, 2014 Velardeña Mine $ — $ — $ $ $ $ — Corporate, Exploration & Other — — — $ — $ — $ $ $ $ — Six Months Ended June 30, 2014 Velardeña Mine $ — $ — $ $ $ $ $ — Corporate, Exploration & Other — — $ — $ — $ $ $ $ $ |
Basis of Preparation of Finan37
Basis of Preparation of Financial Statements and Nature of Operations (Details) - Velardea Mine | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2015g / tT / doz | Mar. 31, 2015g / tT / doz | Jun. 30, 2015g / tT / ditem | |
Basis of Preparation of Financial Statements | |||
Interest acquired (as a percent) | 100.00% | 100.00% | |
Number of exploration properties | item | 10 | ||
Expected plant throughput (in tonnes per day) | T / d | 285 | 285 | |
Plant throughput (in tonnes per day) | T / d | 222 | 236 | 222 |
Silver | |||
Basis of Preparation of Financial Statements | |||
Average grade (in grams per tonne) | g / t | 169 | 178 | 169 |
Gold | |||
Basis of Preparation of Financial Statements | |||
Average grade (in grams per tonne) | g / t | 2.8 | 2.7 | 2.8 |
Silver Equivalent | |||
Basis of Preparation of Financial Statements | |||
Payable metals (in ounces) | 125,000 | 126,000 | |
Silver equivalent ounce ratio | 70 | ||
Metals sold (in ounces) | 133,000 | 139,000 |
Liquidity, Capital Resources 38
Liquidity, Capital Resources and Going Concern (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Dec. 31, 2015USD ($)oz$ / oz | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Liquidity and Capital Resources | ||||||||
Cash and cash equivalents | $ 3,291 | $ 10,400 | $ 3,291 | $ 10,400 | $ 8,579 | $ 19,146 | ||
Difference of cash and cash equivalents between different periods | 5,300 | 5,300 | ||||||
Other exploration expenditures | 1,267 | 1,653 | 2,236 | 3,253 | ||||
General and administrative expenses | 1,000 | 1,150 | 2,328 | 2,805 | ||||
Proceeds from sales of non strategic property and equipment | 400 | |||||||
Increase (decrease) in working capital, net | (1,000) | |||||||
Costs and expenses forecasted | $ 6,470 | $ 5,514 | 13,776 | $ 11,575 | ||||
Expected results | ||||||||
Liquidity and Capital Resources | ||||||||
Cash and cash equivalents | $ 0 | |||||||
Costs and expenses forecasted | 3,200 | |||||||
Other exploration and property holding costs | 1,000 | |||||||
Velardena Operations | ||||||||
Liquidity and Capital Resources | ||||||||
Operating margin | (1,500) | |||||||
Velardena Operations | Expected results | ||||||||
Liquidity and Capital Resources | ||||||||
General and administrative expenses | 2,000 | |||||||
Increase (decrease) in working capital, net | (100) | |||||||
El Quevar Project | ||||||||
Liquidity and Capital Resources | ||||||||
Maintenance and property holding costs | $ 700 | |||||||
El Quevar Project | Expected results | ||||||||
Liquidity and Capital Resources | ||||||||
Maintenance and property holding costs | 300 | |||||||
Hecla | Expected results | ||||||||
Liquidity and Capital Resources | ||||||||
Net cash flow | $ 200 | |||||||
Hecla | Expected results | Minimum | ||||||||
Liquidity and Capital Resources | ||||||||
Net cash flow | $ 4,000 | |||||||
Hecla | Expected results | Maximum | ||||||||
Liquidity and Capital Resources | ||||||||
Net cash flow | $ 5,000 | |||||||
Silver | Expected results | ||||||||
Liquidity and Capital Resources | ||||||||
Expected metals prices | $ / oz | 16 | |||||||
Silver equivalent ounces payable from mining activities | oz | 400,000 | |||||||
Expected change in metal prices (in percentage) | 10.00% | |||||||
Impact of change in metals prices on the cash balance | $ 400 | |||||||
Gold | Expected results | ||||||||
Liquidity and Capital Resources | ||||||||
Expected metals prices | $ / oz | 1,125 | |||||||
Expected change in metal prices (in percentage) | 10.00% | |||||||
Impact of change in metals prices on the cash balance | $ 300 |
Cash and Cash Equivalents and39
Cash and Cash Equivalents and Short-term Investments (Detail) - USD ($) $ in Thousands | Mar. 24, 2015 | Mar. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Investments: | ||||
Available for sale common stock | $ 199 | |||
Total available for sale | 199 | |||
Total short term | 199 | |||
Total short term | 162 | $ 0 | ||
Fair Value | ||||
Investments: | ||||
Available for sale common stock | 162 | |||
Total available for sale | 162 | |||
Total short term | 162 | |||
Value | ||||
Investments: | ||||
Available for sale common stock | 162 | |||
Total available for sale | 162 | |||
Total short term | $ 162 | |||
San Diego | ||||
Investments: | ||||
Ownership interest in the property | 50.00% | |||
Extension period to acquire additional ownership interest | 2 years | |||
Additional interest in joint venture | 10.00% | |||
Additional payments in joint venture | $ 800 | |||
Junior Mining Company | ||||
Investments: | ||||
Shares received | 5,000,000 | |||
Ownership interest in the property | 9.00% | |||
Minimum period of holding | 4 months |
Prepaid Expenses and Other As40
Prepaid Expenses and Other Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Prepaid Expenses and Other Assets | ||
Prepaid insurance | $ 380 | $ 542 |
Prepaid contractor fees and vendor advances | 67 | 100 |
Taxes receivable | 117 | 90 |
Recoupable deposits and other | 139 | 103 |
Prepaid expenses and other assets | $ 703 | $ 835 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Inventories | ||
Metals inventory | $ 119 | $ 477 |
In-process inventory | 141 | 307 |
Material and supplies | 826 | 713 |
Inventories | 1,086 | 1,497 |
Inventory write down charged to cost of metals sold | $ 200 | 1,200 |
Inventory write down charged to depreciation expense | $ 700 |
Value Added Tax Receivable, N42
Value Added Tax Receivable, Net (Details) | 6 Months Ended |
Jun. 30, 2015 | |
Value Added Tax Receivable, Net | |
Expected period within which current amount of VAT will be recovered | 1 year |
Property, Plant and Equipment43
Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Property, plant and equipment | ||
Property, plant and equipment, gross | $ 49,255 | $ 50,255 |
Less: Accumulated depreciation and amortization | (23,047) | (21,224) |
Property, plant and equipment, net | 26,208 | 29,031 |
Mineral Properties | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 22,198 | 22,397 |
Exploration Properties | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 2,743 | 2,743 |
Royalty Properties | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 200 | 200 |
Buildings | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 4,377 | 4,378 |
Mining equipment and machinery | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 17,194 | 17,694 |
Other furniture and equipment | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 841 | 841 |
Asset retirement cost | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | $ 1,702 | $ 2,002 |
Accounts Payable and Other Ac44
Accounts Payable and Other Accrued Liabilities (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Accounts Payable and Other Accrued Liabilities | ||
Accounts payable and accruals | $ 919,000 | $ 893,000 |
Accrued employee compensation and benefits | 838,000 | 746,000 |
Accounts payable and other accrued liabilities | 1,757,000 | 1,639,000 |
Accrued vacation | 200,000 | 100,000 |
Withholding taxes and benefits payable | 600,000 | 600,000 |
Liabilities Pertaining to Corporate Administrative Activities | ||
Accounts Payable and Other Accrued Liabilities | ||
Accounts payable and accruals | 100,000 | 200,000 |
KELTIP Units | KELTIP | ||
Accounts Payable and Other Accrued Liabilities | ||
Accrued employee compensation and benefits | 60,000 | 93,000 |
Velardea Mine | ||
Accounts Payable and Other Accrued Liabilities | ||
Accounts payable and accruals | 800,000 | 700,000 |
Accrued employee compensation and benefits | $ 400,000 | $ 300,000 |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2012 | |
Summary of activity in the Velardena Operations ARO | |||
Beginning balance | $ 2,685 | ||
Accretion expense | 100 | $ 98 | |
Ending balance | 2,478 | ||
Velardea Mine | |||
Asset Retirement and Reclamation Liabilities | |||
Third party estimated closure plan | $ 1,900 | ||
Estimated ARO and ARC recorded at the time of the acquisition | 3,500 | ||
Amortization expense related to the ARC | 100 | ||
Summary of activity in the Velardena Operations ARO | |||
Beginning balance | 2,582 | 2,467 | |
Changes in estimates, and other | (300) | (85) | |
Accretion expense | 100 | 98 | |
Ending balance | 2,382 | $ 2,480 | |
El Quevar Project | |||
Summary of activity in the Velardena Operations ARO | |||
Beginning balance | 100 | ||
Ending balance | $ 100 |
Other Liabilities (Details)
Other Liabilities (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Other current liabilities | $ 1,413 | $ 2,551 |
Loss Contingency Accrual | 900 | 2,200 |
Argentina Equity Tax 2009 Through 2012 | ||
Other current liabilities | 500 | $ 500 |
Interest and penalties | 1,100 | |
VAT tax credit | 600 | |
Increase in tax liability | $ 600 |
Fair value measurements (Detail
Fair value measurements (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Fair value measurements | ||
Short-term investments | $ 162 | $ 0 |
Company's ending stock price (in dollars per share) | $ 0.35 | $ 0.54 |
Company's stock volatility (as a percent) | 85.00% | 90.00% |
Applicable risk free interest rate (as a percent) | 1.40% | 1.60% |
Level 3 | Warrants Liability Member | ||
Fair value measurements | ||
Beginning balance at January 1, 2015 | $ 1,554 | |
Change in estimated fair value | (867) | |
Ending balance at June 30, 2015 | 687 | $ 1,554 |
Recurring | Level 1 | ||
Fair value measurements | ||
Assets | 3,496 | 8,579 |
Cash and cash equivalents | 3,291 | 8,579 |
Short-term investments | 162 | |
Trade accounts receivable | 43 | |
Liabilities | 60 | 93 |
Recurring | Level 1 | KELTIP | ||
Fair value measurements | ||
KEL TIP liability | 60 | 93 |
Recurring | Level 3 | ||
Fair value measurements | ||
Liabilities | 687 | 1,554 |
Warrant liability | 687 | 1,554 |
Recurring | Fair Value | ||
Fair value measurements | ||
Assets | 3,496 | 8,579 |
Cash and cash equivalents | 3,291 | 8,579 |
Short-term investments | 162 | |
Trade accounts receivable | 43 | |
Liabilities | 747 | 1,647 |
Warrant liability | 687 | 1,554 |
Recurring | Fair Value | KELTIP | ||
Fair value measurements | ||
KEL TIP liability | 60 | 93 |
Non-recurring | Fair Value | ||
Fair value measurements | ||
Fair value measurements | $ 0 | $ 0 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Income Taxes | |||
Income Tax Expense (Benefit) | $ 0 | $ 0 | |
Net deferred tax assets | 0 | $ 0 | |
Net deferred tax liabilities | 0 | 0 | |
Unrecognized tax benefits | $ 0 | $ 0 |
Equity (Details)
Equity (Details) - USD ($) $ / shares in Units, $ in Millions | Sep. 10, 2014 | Sep. 04, 2014 | Jun. 30, 2015 | Dec. 31, 2014 |
Applicable risk free interest rate (as a percent) | 1.40% | 1.60% | ||
Share price (in dollars per share) | $ 0.35 | $ 0.54 | ||
Registered Offering | ||||
Registered offering stock units (in shares) | 3,692,000 | |||
Number of shares of common stock per capital unit (in shares) | 1 | |||
Number of common shares which can be purchased with each warrant | 0.50 | |||
Sale price (in dollars per shares) | $ 0.86 | |||
Exercise price of warrants (in dollars per share) | $ 1.21 | |||
Term of warrants | 5 years | |||
Net proceeds from offering | $ 2.7 | $ 1.5 | ||
Amount of underwriting commissions and expenses | $ 0.5 | |||
Applicable risk free interest rate (as a percent) | 1.60% | |||
Share price (in dollars per share) | $ 1.01 | |||
Fair value of warrants | $ 1.2 | |||
Private Placement | Sentient | ||||
Units issued (in shares) | 5,800,000 | |||
Number of shares of common stock per capital unit (in shares) | 1 | |||
Number of common shares which can be purchased with each warrant | 0.50 | |||
Sale price (in dollars per shares) | $ 0.817 | |||
Exercise price of warrants (in dollars per share) | $ 1.21 | |||
Term of warrants | 5 years | |||
Net proceeds from offering | $ 4.7 | $ 2.7 | ||
Amount of underwriting commissions and expenses | $ 0.3 | |||
Applicable risk free interest rate (as a percent) | 1.60% | |||
Share price (in dollars per share) | $ 1.01 | |||
Fair value of warrants | $ 1.9 | |||
Ownership interest in outstanding Common Stock (as a percent) | 27.20% |
Equity (Details 2)
Equity (Details 2) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Additional information | ||||
Compensation expense | $ 94,000 | $ 257,000 | $ 273,000 | $ 587,000 |
Restricted Stock Units (RSUs) | ||||
Additional information | ||||
Compensation expense | 89,000 | |||
Additional compensation expense expected to be recognized | $ 92,000,000 | $ 92,000,000 | ||
Period for recognition of additional compensation expense | 12 months | |||
Number of unrestricted common shares that the Director is entitled to receive for each vested RSU, upon termination from board service | 1 | |||
Equity Plan | Restricted Stock | ||||
Number of Shares | ||||
Outstanding at beginning of year (in shares) | 600,838 | |||
Restrictions lifted during the period (in shares) | (8,833) | |||
Outstanding at end of year (in shares) | 592,005 | 592,005 | ||
Weighted Average Grant Date Fair Value Per Share | ||||
Outstanding at beginning of year (in dollars per share) | $ 1.48 | |||
Restrictions lifted during the year (in dollars per share) | 8.64 | |||
Outstanding at end of year (in dollars per share) | $ 1.37 | $ 1.37 | ||
Additional information | ||||
Compensation expense | $ 100,000 | |||
Additional compensation expense expected to be recognized | $ 100,000 | $ 100,000 | ||
Period for recognition of additional compensation expense | 18 months | |||
Equity Plan | Restricted Stock | Officers and Employees | ||||
Number of Shares | ||||
Restrictions lifted during the period (in shares) | (8,833) | |||
Equity Plan | Employee and Directors Stock Options | ||||
Number of Shares | ||||
Outstanding at beginning of period (in shares) | 245,810 | |||
Outstanding at end of year (in shares) | 245,810 | 245,810 | ||
Exercisable at end of period (in shares) | 245,810 | 245,810 | ||
Granted and vested (in shares) | 95,810 | 95,810 | ||
Weighted Average Exercise Price Per Share | ||||
Outstanding at beginning of year (in dollars per share) | $ 3.47 | |||
Outstanding at end of year (in dollars per share) | $ 3.47 | 3.47 | ||
Exercisable at end of period (in dollars per share) | 3.47 | 3.47 | ||
Granted and vested (in dollars per share) | $ 8.02 | $ 8.02 | ||
Deferred Compensation Plan | Restricted Stock Units (RSUs) | ||||
Number of Shares | ||||
Outstanding at beginning of year (in shares) | 935,285 | |||
Granted during the period (in shares) | 280,000 | |||
Outstanding at end of year (in shares) | 1,215,285 | 1,215,285 | ||
Weighted Average Grant Date Fair Value Per Share | ||||
Outstanding at beginning of year (in dollars per share) | $ 2.08 | |||
Granted during the period (in dollars per share) | 0.40 | |||
Outstanding at end of year (in dollars per share) | $ 1.69 | $ 1.69 |
Equity (Details 3)
Equity (Details 3) - USD ($) $ / shares in Units, $ in Thousands | Sep. 10, 2014 | Sep. 30, 2012 | Jun. 30, 2015 | Dec. 31, 2014 |
Weighted Average Exercise Price Per Share | ||||
Warrant Liability | $ 687 | $ 1,554 | ||
Company's stock volatility (as a percent) | 85.00% | 90.00% | ||
Sentient | Private Placement | ||||
Number of Underlying Shares | ||||
Units Issued During Period New Issues | 5,800,000 | |||
Weighted Average Exercise Price Per Share | ||||
Outstanding at the end of period (in dollars per share) | $ 1.21 | |||
Number of shares of common stock per capital unit (in shares) | 1 | |||
Term of warrants | 5 years | |||
Number of common shares which can be purchased with each warrant | 0.50 | |||
Warrant | ||||
Number of Underlying Shares | ||||
Outstanding at the beginning of period (in shares) | 8,777,409 | |||
Units Issued During Period New Issues | 4,746,000 | |||
Outstanding at the end of period (in shares) | 8,777,409 | 8,777,409 | ||
Weighted Average Exercise Price Per Share | ||||
Outstanding at the beginning of period (in dollars per share) | $ 3.95 | |||
Outstanding at the end of period (in dollars per share) | $ 3.95 | $ 3.95 | ||
2014 Warrants | ||||
Weighted Average Exercise Price Per Share | ||||
Warrant Liability | $ 700 | |||
2012 Warrants | Sentient | Private Placement | ||||
Number of Underlying Shares | ||||
Dilution adjustment | 599,760 | |||
Outstanding at the end of period (in shares) | 3,431,649 | |||
Outstanding warrants after dilution adjustment | 4,031,409 | |||
Weighted Average Exercise Price Per Share | ||||
Outstanding at the end of period (in dollars per share) | $ 8.42 | $ 7.17 | ||
Number of shares of common stock per capital unit (in shares) | 1 | |||
Term of warrants | 5 years | |||
Number of common shares which can be purchased with each warrant | 0.5 |
Sale of Metals and Related Co52
Sale of Metals and Related Costs (Details) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015USD ($)customer | Dec. 31, 2014USD ($) | |
Sale of Metals and Related Costs | ||
Number of customers to whom marketable products were sold | customer | 2 | |
Inventory write down charged to cost of metals sold | $ 0.2 | $ 1.2 |
Inventory write down charged to depreciation expense | $ 0.7 |
Interest and Other Income (Deta
Interest and Other Income (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Interest and Other Income | ||
Interest and Other Income | $ 1.4 | $ 0.9 |
Warrant Warrant Derivative Gain
Warrant Warrant Derivative Gain (Details). - Jun. 30, 2015 - USD ($) $ in Thousands | Total | Total |
Warrant Derivative Gain. | ||
Decrease in fair value liability warrants | $ (218) | $ (868) |
Supplemental Cash Flow Inform55
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Cash flows from operating activities: | |||||
Net loss | $ (3,850) | $ (5,043) | $ (7,281) | $ (10,701) | $ (18,823) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||
Amortization and depreciation | $ 1,175 | $ 778 | 2,534 | 1,624 | |
Accretion of asset retirement obligation | 100 | 98 | |||
Decrease in warrant liability | (868) | ||||
Foreign currency gain (loss) contingency | (69) | 16 | |||
Asset write off | 2 | 120 | |||
Write off of loss contingencies | (1,142) | (859) | |||
Gain on sale of assets, net | (256) | (1) | |||
Stock compensation | 273 | 586 | |||
Changes in operating assets and liabilities: | |||||
(Increase) decrease in trade accounts receivable | (43) | 25 | |||
Decrease in prepaid expenses and other assets | 131 | 198 | |||
Decrease in inventories | 200 | 65 | |||
Decrease (increase) in value added tax receivable, net | 662 | (10) | |||
Decrease in reclamation liability | (6) | (112) | |||
Increase in accounts payable and accrued liabilities | 222 | 190 | |||
Increase (decrease) in deferred leasehold payments | (4) | 21 | |||
Net cash used in operating activities | $ (5,545) | $ (8,740) |
Commitments and Contingencies (
Commitments and Contingencies (Details ) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Commitments and Contingencies | ||
Loss contingency | $ 1.4 | $ 2.6 |
Argentina Equity Tax 2009 Through 2012 | ||
Commitments and Contingencies | ||
Increase in tax liability | 0.6 | |
Argentina Equity Tax 2009 Through 2012 | Maximum | ||
Commitments and Contingencies | ||
Increase in tax liability | $ 0.6 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)item | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |
Segment Information | |||||
Number of reportable segments | item | 2 | ||||
Revenue | $ 1,961 | $ 4,298 | |||
Costs Applicable to Sales | 2,775 | 5,787 | |||
Depreciation, depletion and amortization | 1,175 | $ 778 | 2,534 | $ 1,624 | |
Exploration, El Quevar, Velardena and Administrative Expense | 2,511 | 4,432 | 5,333 | 9,270 | |
Pre-Tax loss | 3,850 | 5,043 | 7,281 | 10,701 | |
Total Assets | 32,147 | 44,121 | 32,147 | 44,121 | $ 41,258 |
Capital Expenditures | 44 | $ 44 | 7 | ||
Velardea Mine | |||||
Segment Information | |||||
Number of reportable segments | item | 1 | ||||
Revenue | 1,961 | $ 4,298 | |||
Costs Applicable to Sales | 2,775 | 5,787 | |||
Depreciation, depletion and amortization | 1,012 | 577 | 2,195 | 1,202 | |
Exploration, El Quevar, Velardena and Administrative Expense | 1,208 | 119 | 2,457 | ||
Pre-Tax loss | 1,347 | 1,328 | 2,219 | 3,324 | |
Total Assets | 23,895 | 27,828 | 23,895 | 27,828 | |
Capital Expenditures | 28 | 28 | |||
Corporate, Exploration & Other | |||||
Segment Information | |||||
Depreciation, depletion and amortization | 163 | 201 | 339 | 422 | |
Exploration, El Quevar, Velardena and Administrative Expense | 2,511 | 3,224 | 5,214 | 6,813 | |
Pre-Tax loss | 2,503 | 3,715 | 5,062 | 7,377 | |
Total Assets | 8,252 | $ 16,293 | 8,252 | 16,293 | |
Capital Expenditures | $ 16 | $ 16 | $ 7 |