Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Aug. 08, 2017 | |
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, 2017 | |
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 | 91,842,362 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash and cash equivalents | $ 2,726 | $ 2,588 |
Short-term investments | 231 | 334 |
Trade receivables | 473 | 380 |
Inventories, net | 281 | 245 |
Value added tax receivable, net | 185 | 5 |
Related party receivable | 643 | |
Prepaid expenses and other assets | 650 | 578 |
Total current assets | 4,546 | 4,773 |
Property, plant and equipment, net | 8,709 | 9,235 |
Total assets | 13,255 | 14,008 |
Current liabilities | ||
Accounts payable and other accrued liabilities | 1,400 | 1,224 |
Other current liabilities | 26 | 24 |
Total current liabilities | 1,426 | 1,248 |
Asset retirement and reclamation liabilities | 2,402 | 2,434 |
Warrant liability - related party | 813 | 976 |
Warrant liability | 721 | 922 |
Warrant liability | 1,500 | |
Other long term liabilities | 55 | 66 |
Total liabilities | 5,417 | 5,646 |
Equity | ||
Common stock, $.01 par value, 200,000,000 and 100,000,000 shares authorized; 90,031,347 and 89,020,041 shares issued and outstanding, respectively | 899 | 889 |
Additional paid in capital | 496,194 | 495,455 |
Accumulated deficit | (489,207) | (488,037) |
Accumulated other comprehensive (loss) income | (48) | 55 |
Shareholders' equity | 7,838 | 8,362 |
Total liabilities and equity | $ 13,255 | $ 14,008 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2017 | Dec. 31, 2016 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 100,000,000 |
Common stock, shares issued | 90,031,347 | 89,020,041 |
Common stock, shares outstanding | 90,031,347 | 89,020,041 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Revenue: | |||||
Oxide plant lease | $ 1,692 | $ 1,576 | $ 3,336 | $ 3,039 | |
Total revenue | 1,692 | 1,576 | 3,336 | 3,039 | |
Costs and expenses: | |||||
Oxide plant lease costs | (548) | (455) | (1,085) | (929) | |
Exploration expense | (457) | (1,162) | (991) | (1,938) | |
El Quevar project expense | (192) | (210) | (341) | (373) | |
Velardena shutdown and care and maintenance costs | (369) | (546) | (719) | (1,133) | |
Administrative expense | (872) | (1,026) | (1,898) | (2,244) | |
Stock based compensation | (242) | (539) | (307) | (571) | |
Reclamation expense | (48) | (46) | (97) | (97) | |
Other operating income, net | 705 | 205 | 862 | 244 | |
Depreciation and amortization | (130) | (421) | (318) | (971) | |
Total costs and expenses | (2,153) | (4,200) | (4,894) | (8,012) | |
Loss from operations | (461) | (2,624) | (1,558) | (4,973) | |
Other income and (expense): | |||||
Interest expense | (72) | (515) | |||
Interest and other income | 4 | 32 | 22 | 35 | |
Warrant derivative gain (loss) | 425 | (1,096) | 363 | (2,276) | |
Derivative loss | (130) | (778) | |||
Gain (loss) on debt extinguishment | 13 | (1,653) | |||
(Loss) gain on foreign currency | (3) | (38) | 3 | (42) | |
Total other expense | 426 | (1,291) | 388 | (5,229) | |
Loss from operations before income taxes | (35) | (3,915) | (1,170) | (10,202) | |
Income tax benefit | 26 | 26 | |||
Net loss | (35) | (3,889) | (1,170) | (10,176) | |
Comprehensive loss, net of tax: | |||||
Unrealized (loss) gain on securities | (51) | 89 | (103) | 171 | |
Comprehensive loss | $ (86) | $ (3,800) | $ (1,273) | $ (10,005) | |
Net loss per common share — basic | |||||
Loss (in dollars per share) | $ 0 | $ (0.05) | $ (0.01) | $ (0.14) | |
Weighted average common stock outstanding - basic (in shares) | [1] | 89,618,677 | 82,817,778 | 89,485,223 | 74,343,257 |
[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, 2017 | Jun. 30, 2016 | |
Cash flows from operating activities: | ||
Net cash used in operating activities | $ (1,269) | $ (3,774) |
Cash flows from investing activities: | ||
Proceeds from sale of assets | 733 | 50 |
Capitalized costs and acquisitions of property, plant and equipment | (20) | |
Net cash from investing activities | 733 | 30 |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock | 674 | 3,599 |
Net cash from financing activities | 674 | 3,599 |
Net increase (decrease) in cash and cash equivalents | 138 | (145) |
Cash and cash equivalents, beginning of period | 2,588 | 4,077 |
Cash and cash equivalents, end of period | $ 2,726 | $ 3,932 |
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, 2015 | $ 534 | $ 484,742 | $ (477,378) | $ (127) | $ 7,771 |
Balance (in shares) at Dec. 31, 2015 | 53,335,333 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Stock compensation accrued and shares issued for vested stock awards | $ 2 | 250 | 252 | ||
Stock compensation accrued and shares issued for vested stock awards (in shares) | 317,968 | ||||
Shares issued on conversion of Sentient Note | $ 273 | 6,944 | 7,217 | ||
Shares issued on conversion of Sentient Note (in shares) | 27,366,740 | ||||
Common stock, new issue | $ 80 | 3,519 | 3,599 | ||
Common stock, new issue (in shares) | 8,000,000 | ||||
Unrealized (loss) gain on securities | 182 | 182 | |||
Net loss | (10,659) | (10,659) | |||
Balance at Dec. 31, 2016 | $ 889 | 495,455 | (488,037) | 55 | 8,362 |
Balance (in shares) at Dec. 31, 2016 | 89,020,041 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Stock compensation accrued and shares issued for vested stock awards | 75 | 75 | |||
Common stock, new issue | $ 10 | 664 | 674 | ||
Common stock, new issue (in shares) | 1,011,306 | ||||
Unrealized (loss) gain on securities | (103) | (103) | |||
Net loss | (1,170) | (1,170) | |||
Balance at Jun. 30, 2017 | $ 899 | $ 496,194 | $ (489,207) | $ (48) | $ 7,838 |
Balance (in shares) at Jun. 30, 2017 | 90,031,347 |
Basis of Preparation of Financi
Basis of Preparation of Financial Statements and Nature of Operations | 6 Months Ended |
Jun. 30, 2017 | |
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 accounting principles generally accepted in the United States (“GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”). The interim condensed consolidated financial statements do not include all disclosures required by GAAP for annual financial statements, but in the opinion of management, include all adjustments necessary for a fair presentation. Interim results are not necessarily indicative of results for a full year; accordingly, 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, 2016, and filed with the SEC on February 28, 2017. The Company is a mining company, holding a 100% interest in the Velardeña and Chicago precious metals mining properties and associated oxide and sulfide processing plants in Mexico (the “Velardeña Properties”). During November 2015 the Company suspended mining and sulfide processing activities at its Velardeña Properties in order to conserve the asset until the Company is able to develop mining and processing plans that at then current prices for silver and gold indicate a sustainable positive operating margin (defined as revenues less costs of sales) or the Company is able to locate, acquire and develop alternative mineral sources that could be economically mined and transported to the Velardeña Properties for processing. The Company has placed the mine and sulfide processing plant on care and maintenance to enable a re-start of either the mine or mill when mining and processing plans and metals prices support a cash positive outlook. The Company incurred approximately $2.0 million in related shutdown costs for employee severance, net working capital obligations, and other shutdown expenditures during the year ended December 31, 2016 and $0.7 million in care and maintenance costs for the six months ended June 30, 2017 and expects to incur approximately $0.4 million in quarterly care and maintenance costs while mining and processing remain suspended. The Company has retained a core group of employees, most of whom have been assigned to operate the oxide plant, which is leased to a third party and not affected by the shutdown. The oxide plant began processing material for the third party in mid-December 2015, and the Company expects to receive net cash flow under the lease of approximately $4.7 million in 2017. During March 2017, the third party exercised its right to extend the lease through December 31, 2018. On August 2, 2017, the Company granted the third party an option to extend the lease for an additional period of up to two years ending no later than December 31, 2020 in exchange for a $1.0 million cash payment and the purchase of $1.0 million, or approximately 1.8 million shares of the Company’s common stock, issued at par at a price of $0.55 per share, based on an undiscounted 30-day volume weighted average stock price (see Note 21). The retained employees also include an exploration group and an operations and administrative group, led by a newly appointed general manager of Mexico operations to continue to advance the Company’s plans in Mexico, oversee corporate compliance activities, and to maintain and safeguard the longer term value of the Velardeña and other Mexican assets. The Company remains focused on evaluating and searching for mining opportunities in North America (including Mexico) with near term prospects of mining, and particularly for properties within reasonable haulage distances of our Velardeña Properties. The Company is also reviewing strategic opportunities, focusing primarily on development or operating properties in North America, including Mexico. 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 advanced exploration property in Argentina on care and maintenance until it can fund further exploration or find a partner to further fund exploration. 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”. |
New Accounting Pronouncements
New Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2017 | |
New Accounting Pronouncements | |
New Accounting Pronouncements | 2. New Accounting Pronouncements In July 2017, the FASB issued ASU 2017-11, “ Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815): (Part 1) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Non public Entities and Certain Mandatorily Redeemable Non-controlling Interests with a Scope Exception (“ASU 2017-11”). Part I relates to the accounting for certain financial instruments with down round features in Subtopic 815-40, which is considered in determining whether an equity-linked financial instrument qualifies for a scope exception from derivative accounting. An entity still is required to determine whether instruments would be classified in equity under the guidance in Subtopic 815-40 in determining whether they qualify for that scope exception. If they do qualify, freestanding instruments with down round features are no longer classified as liabilities. For the Company, ASU 2017-11 is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period. Early adoption is permitted, including in an interim period. If adopted in an interim period, any adjustments would be reflected as of the beginning of the fiscal year that includes the interim period. The Company currently reports the fair value of its 2012 and 2014 warrants (see Notes 11 and 13) as liabilities 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 and the number of warrant shares outstanding 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. The Company is currently evaluating whether the scope exception under ASU 2017-11 applies to the 2012 and 2014 warrants and whether the warrants should no longer be classified as liabilities but rather in equity. The Company had recorded a “ Warrant liability ” of $1.5 million on its Condensed Consolidated Balance Sheets as of June 30, 2017 and reported a “ Warrant derivative gain ” of $0.4 million for the six months ended June 30, 2017 on its Condensed Consolidated Statements of Operation and Comprehensive Loss. In March 2016, the FASB issued ASU 2016-08, “ Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)” (“ASU 2016-08”), which clarifies principal versus agent when another party, along with the entity, is involved in providing a good or service to a customer. Topic 606, Revenue from Contracts with Customers, requires an entity to determine whether the nature of its promise is to provide that good or service to the customer (i.e., the entity is a principal) or to arrange for the good or service to be provided to the customer by the other party (i.e., the entity is an agent). For the Company, ASU 2016-08 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early application is not permitted. As the Company’s current accounting practices per the guidance of ASC 605 are comparable to the requirements of ASU 2016-08, the Company does not expect the adoption of this update to result in a material impact on its consolidated financial position or results of operations. In February 2016, the FASB issued ASU 2016-02, “Leases” (“ASU 2016-02”), which will require lessees to recognize a right-of-use asset and a lease liability for all leases that are not short-term in nature. For a lessor, the accounting applied is also largely unchanged from previous guidance. The new rules will be effective for the Company in the first quarter of 2019. The Company does not anticipate early adoption. The Company does not expect the adoption of ASU 2016-02 to materially change the amounts related to leases that are currently recorded and therefore the Company does not expect the adoption to have a material impact on its consolidated financial position or results of operations. In January 2016, the FASB issued ASU No. 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”) which amended its standards related to the accounting of certain financial instruments. This amendment addresses certain aspects of recognition, measurement, presentation and disclosure. The new rules will become effective for annual and interim periods beginning after December 15, 2017. Early adoption is not permitted. We are in the process of evaluating the impact the amendment will have on our consolidated financial position and results of operations. In May 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, 2017; early adoption is not permitted. ASU 2014-09 was originally effective December 15, 2016 but ASU 2015-14 deferred the effective date by one year. As the Company’s current accounting practices per the guidance of ASU 2014-09 are comparable to the requirements of ASU 2014-09, the Company does not expect the adoption of this update to result in a material impact on its 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, 2017 | |
Cash and Cash Equivalents and Short-Term Investments | |
Cash and Cash Equivalents and Short-Term Investments | 3. 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, 2017 and December 31, 2016: Estimated Carrying June 30, 2017 Cost Fair Value Value (in thousands) Investments: Short-term: Available for sale common stock $ 275 $ 231 $ 231 Total available for sale 275 231 231 Total short term $ 275 $ 231 $ 231 December 31, 2016 Investments: Short-term: Available for sale common stock $ 275 $ 334 $ 334 Total available for sale 275 334 334 Total short term $ 275 $ 334 $ 334 The available for sale common stock consists of 7,500,000 common shares, approximately 10% of the outstanding common shares, of Golden Tag Resources, Ltd. (“Golden Tag”), a junior mining company that was a joint venture partner in the Company’s previously owned San Diego exploration property in Mexico. The Company acquired the shares during 2015 and 2016 in transactions involving the sale of its remaining 50% interest in the San Diego property to Golden Tag. Credit Risk The Company invests substantially all of its excess cash with high credit-quality financial institutions or in U.S. government or debt securities. Credit risk is the risk that a third party might fail to fulfill its performance obligations under the terms of a financial instrument. For cash and equivalents and investments, credit risk represents the carrying amount on the balance sheet. The Company mitigates credit risk for cash and equivalents and investments by placing its funds and investments with high credit-quality financial institutions, limiting the amount of exposure to each of the financial institutions, monitoring the financial condition of the financial institutions and investing only in government and corporate securities rated “investment grade” or better. The Company invests with financial institutions that maintain a net worth of not less than $1 billion and are members in good standing of the Securities Investor Protection Corporation. |
Prepaid Expenses and Other Asse
Prepaid Expenses and Other Assets | 6 Months Ended |
Jun. 30, 2017 | |
Prepaid Expenses and Other Assets | |
Prepaid Expenses and Other Assets | 4. Prepaid Expenses and Other Assets Prepaid expenses and other current assets consist of the following: June 30, December 31, 2017 2016 (in thousands) Prepaid insurance $ 308 $ 296 Deferred offering costs 137 153 Recoupable deposits and other 205 129 $ 650 $ 578 The deferred offering costs are related to the ATM Program discussed in detail in Note 13. |
Inventories, net
Inventories, net | 6 Months Ended |
Jun. 30, 2017 | |
Inventories, net | |
Inventories, net | 5. Inventories, net Inventories at the Velardeña Properties at June 30, 2017 and December 31, 2016 consist of the following: June 30, December 31, 2017 2016 (in thousands) Material and supplies $ 281 $ $ 281 $ 245 The material and supplies inventory at June 30, 2017 and December 31, 2016 is reduced by a $0.2 million obsolescence charge reflected in shutdown and care and maintenance costs. |
Value Added Tax Receivable, Net
Value Added Tax Receivable, Net | 6 Months Ended |
Jun. 30, 2017 | |
Value added tax receivable, net | |
Value added tax receivable, Net | 6. Value Added Tax Receivable, Net 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. At June 30, 2017, the Company has also recorded approximately $15,000 of VAT receivable as a reduction to VAT payable in Mexico, which appears in “ Accounts payable and other accrued liabilities” on the Condensed Consolidated Balance Sheets. Following the end of June 30, 2017, the Company received a refund of approximately $0.2 million from the government of Argentina for VAT paid in that country during 2011 and 2012. Because of uncertainties relating to collectability of the taxes the Company had recorded a full valuation allowance against the VAT receivable at the time the taxes were paid. At June 30, 2017, the Company reversed $0.2 million of the valuation allowance and recorded a VAT receivable of $0.2 million with a corresponding gain in “Other operating income” on the Condensed Consolidated Statements of Operations and Comprehensive Loss. 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, 2017 | |
Property, Plant and Equipment, Net | |
Property, Plant and Equipment, Net | 7. Property, Plant and Equipment, Net The components of property, plant and equipment are as follows: June 30, December 31, 2017 2016 (in thousands) Mineral properties $ 9,352 $ 9,352 Exploration properties 2,518 2,518 Royalty properties 200 200 Buildings 4,221 4,386 Mining equipment and machinery 16,055 16,351 Other furniture and equipment 952 952 Asset retirement cost 865 992 34,163 34,751 Less: Accumulated depreciation and amortization (25,454) (25,516) $ 8,709 $ 9,235 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”), as discussed below in Note 9. In August 2016, the Company sold certain mining equipment consisting of two haul trucks, two scoop trams and a compressor to Minera Indé, an indirect subsidiary of Sentient, for $687,000 (see Note 20). The equipment sold was excess equipment held at the Company’s Velardeña Properties that the Company did not expect to use. The Company received $69,000 or 10% of the sales price at the closing of the sale, with the remaining $618,000 plus interest on the unpaid balance at an annual rate of 10% due in February 2017. The Company and Minera Indé amended the original equipment sale on March 31, 2017 to include the sale of an additional piece of excess equipment for $185,000 and extend the time for payment relating to the original equipment sale. Upon execution of the amendment the Company received an additional payment of $100,000. The remaining principal and interest balance, plus additional interest on the unpaid balance at an annual rate of 10%, was amended to be due in August 2017. The Company recorded a gain of $105,000 on the sale of the additional equipment, included in “ Other operating income ” in the accompanying Condensed Consolidated Statements of Operations and Comprehensive Loss, equal to the gross proceeds less the remaining basis in the equipment. On May 2, 2017, the Company received approximately $750,000 from Minera Indé as payment in full for the remaining balance due related to the equipment sale, including interest through that date. In the third quarter 2016, the Company, through its wholly owned Mexican subsidiary, entered into an earn-in agreement with a 100% owned Mexican subsidiary of Electrum Global Holdings, L.P., a privately owned company (together “Electrum”), related to the Company’s Celaya exploration property in Mexico. The Company received an upfront payment of $0.2 million and Electrum has agreed to incur exploration expenditures totaling at least $0.5 million in the first year of the agreement, reduced by certain costs Electrum previously incurred on the property since December 2015 in its ongoing surface exploration program. Electrum, at its option, can elect to acquire an undivided 60% interest in a joint venture company to be formed to hold the Celaya project after incurring exploration expenditures totaling $2.5 million during the first three years of the agreement. Electrum would serve as manager of the joint venture. If we elect not to contribute to additional exploration or development expenditures after the initial earn-in period, Electrum, at its option, would have the right to earn an additional 20% interest in the Celaya project, for a total interest of 80%, by incurring an additional $2.5 million of exploration or development expenditures over a second three-year period. Following the second earn-in period we would have the right to maintain our 20% interest or our interest ultimately could be converted into a 10% net profits interest. In April 2016, the Company entered into an option agreement under which Santacruz Silver Mining Ltd. (“Santacruz”) may acquire the Company’s interest in certain nonstrategic mineral claims located in the Zacatecas Mining District, Zacatecas, Mexico (the “Zacatecas Properties”) for a series of payments totaling $1.5 million. Santacruz paid the Company $0.2 million on signing the agreement, and another $0.2 million and $0.3 million in October 2016 and May 2017 respectively. To maintain its option and acquire the Zacatecas Properties, Santacruz must pay the Company an additional $0.3 million and $0.5 million in October 2017 and April 2018 respectively. Santacruz has the right to terminate the option agreement at any time, and the agreement will terminate if Santacruz fails to make a payment when due. |
Accounts Payable and Other Accr
Accounts Payable and Other Accrued Liabilities | 6 Months Ended |
Jun. 30, 2017 | |
Accounts Payable and Other Accrued Liabilities | |
Accounts Payable and Other Accrued Liabilities | 8. Accounts Payable and Other Accrued Liabilities The Company’s accounts payable and other accrued liabilities consist of the following: June 30, December 31, 2017 2016 (in thousands) Accounts payable and accruals $ 287 $ 344 Accrued employee compensation and benefits 1,113 880 $ 1,400 $ 1,224 June 30, 2017 Accounts payable and accruals at June 30, 2017 consist primarily of $0.1 million due to contractors and suppliers 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 a VAT payable that is not an offset to the VAT receivable. Accrued employee compensation and benefits at June 30, 2017 consist of $0.3 million of accrued vacation payable and $0.8 million related to withholding taxes and benefits payable, of which $0.2 million is related to activities at the Velardeña Properties, and $0.6 million is related to the Key Employee Long-Term Incentive Plan (“KELTIP”) (see Note 13). December 31, 2016 Accounts payable and accruals at December 31, 2016 are primarily related to amounts due to contractors and suppliers in the amounts of $0.1 million and $0.2 million related to the Company’s Velardeña Properties and corporate administrative activities, respectively. In the case of the Velardeña Properties, approximately $0.1 million is related to a net VAT payable. Accrued employee compensation and benefits at December 31, 2016 consist of $0.3 million of accrued vacation payable and $0.6 million related to withholding taxes and benefits payable, of which $0.2 million is related to activities at the Velardeña Properties and $0.3 million is related to the KELTIP (see Note 13). |
Asset Retirement Obligation and
Asset Retirement Obligation and Reclamation Liabilities | 6 Months Ended |
Jun. 30, 2017 | |
Asset Retirement Obligation and Reclamation Liabilities | |
Asset Retirement Obligation and Reclamation Liabilities | 9. Asset Retirement Obligation and Reclamation Liabilities 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 2017, the Company recognized approximately $97,000 of accretion expense and approximately $4,000 of amortization expense related to the ARC. The following table summarizes activity in the Velardeña Properties ARO: Six Months Ended June 30, 2017 2016 (in thousands) Beginning balance $ 2,380 $ 2,480 Changes in estimates, and other (128) (293) Accretion expense 97 50 Ending balance $ 2,349 $ 2,237 The decreases in the ARO recorded during the 2017 and 2016 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, 2017 and December 31, 2016 includes approximately $0.1 million of reclamation liabilities related to activities at the El Quevar project in Argentina. |
Convertible Note Payable - Rela
Convertible Note Payable - Related Party, Net | 6 Months Ended |
Jun. 30, 2017 | |
Convertible Note Payable – Related Party, Net | |
Convertible Note Payable – Related Party, Net | 10. Convertible Note Payable – Related Party, Net In October 2015, the Company borrowed $5.0 million from The Sentient Group, LLC (“Sentient”), the Company’s largest stockholder, pursuant to the terms of a Senior Secured Convertible Note the (“Sentient Note”) and a related loan agreement (the “Sentient Loan”), with principal and accrued interest due on October 27, 2016. In January 2016, upon approval by the Company’s stockholders, the Sentient Note became convertible, solely at Sentient's option, into shares of the Company's common stock at a price equal to the lowest of: 1) $0.289, 90 percent of the 15-day volume weighted average price ("VWAP") for the period immediately preceding the loan closing date, 2) 90 percent of the 15-day VWAP for the period immediately preceding the loan conversion date, or 3) an anti-dilution adjusted price based on the lowest price for which the Company has sold its stock following the loan closing date. The loan provided for interest at a rate of 9% per annum, compounded monthly. On February 11, 2016, Sentient converted approximately $3.9 million of principal and $0.1 million of accrued interest (representing the total amount of accrued interest at the conversion date) on the Sentient Note into 23,355,000 shares of the Company's common stock at an exercise price of approximately $0.172 per share, equal to 90% of the 15-day VWAP immediately preceding the conversion date. On June 10, 2016, Sentient converted the remaining approximately $1.1 million of principal and approximately $34,000 of accrued interest (representing the total amount of accrued interest at the conversion date) into 4,011,740 shares of the Company's common stock at an exercise price of approximately $0.289 per share, equal to 90% of the 15 ‐ day VWAP immediately preceding the loan’s original issue date. The beneficial conversion feature of the Sentient Note represented an embedded derivative as defined by ASC 815 "Derivatives and Hedging" ("ASC 815"). ASC 815 provides that a derivative instrument's fair value must be bifurcated from the note and separately recorded on the Company's Consolidated Balance Sheet. The Company used a third party consultant to value the embedded derivative in the Sentient Note employing a Monte Carlo type probability analysis, which falls within Level 3 of the fair value hierarchy (see Note 11). For purposes of valuing the embedded derivative as of the Sentient Loan closing date, at December 31, 2015, at February 11, 2016 (first partial conversion date), and at March 31, 2016, the valuation model took into account, among other items: 1) the probability of successfully achieving stockholder approval of the Sentient Note’s conversion feature, 2) future variations in the Company’s stock price, and 3) the probability of entering into an equity transaction prior to the Sentient Loan maturity date that would lower the conversion price. It was determined that the embedded derivative had a fair value of approximately $1.1 million at October 27, 2015, the date the Company entered into the Sentient Loan. Subsequent mark-to-market changes in the value of the derivative were recorded as income or loss in the Consolidated Statements of Operations and Comprehensive Loss. The Sentient Note was recorded net of the bifurcated embedded derivative at October 27, 2015 with the $1.1 million difference between the face value and the recorded value of the Note representing a loan discount that was amortized to interest expense over the life of the loan using the interest rate method. The Company incurred approximately $0.3 million in legal and other costs associated with the Sentient Loan. Per the guidance of ASU 2015-03 the loan costs were presented as a reduction to the note payable on the accompanying Consolidated Balance Sheets and were amortized to interest expense over the life of the Sentient note using the interest rate method. The Company adjusted the recorded value of the Sentient Loan at the first partial conversion date and at March 31, 2016 to reflect the amortization of the loan discount and loan costs, shown as “ Interest expense ” in the Consolidated Statements of Operations and Comprehensive Loss. For the six months ended June 30, 2016, the Company recorded a total noncash loss on debt extinguishment of $1.7 million reflecting the difference between the value of the shares issued to Sentient as a result of the February 11, 2016 conversion and the recorded value of the Sentient Loan, including related loan costs, loan discount and embedded derivative eliminated at the conversion date. The Company marked-to-market the embedded derivative at the February 11, 2016 conversion date and recorded a total derivative loss of $0.8 million for six months ended June 30, 2016 in the Condensed Consolidated Statements of Operations and Comprehensive Loss. At June 10, 2016, the Sentient Note had been fully converted and the Company had no outstanding debt at June 30, 2017 or December 31, 2016. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Measurements | |
Fair Value Measurements | 11. 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, 2017 and December 31, 2016, by respective level of the fair value hierarchy: Level 1 Level 2 Level 3 Total (in thousands) At June 30, 2017 Assets: Cash and cash equivalents $ 2,726 $ — $ — $ 2,726 Trade accounts receivable 469 — — 469 Trade accounts receivable - related party 4 — — 4 Short-term investments 231 — — 231 $ 3,430 $ — $ — $ 3,430 Liabilities: Warrant liability - related party $ — $ — $ 813 $ 813 Warrant liability — — 721 721 $ — $ — $ 1,534 $ 1,534 At December 31, 2016 Assets: Cash and cash equivalents $ 2,588 $ — $ — $ 2,588 Trade accounts receivable 380 — — 380 Trade accounts receivable - related party 643 — — 643 Short-term investments 334 — — 334 $ 3,945 $ — $ — $ 3,945 Liabilities: Warrant liability - related party $ — $ — $ 976 $ 976 Warrant liability — — 922 922 $ — $ — $ 1,898 $ 1,898 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 trade accounts receivable are classified within Level 1 of the fair value hierarchy and are related to the lease of the oxide plant, valued per the terms of the lease rates per the plant lease agreement, and to the sale of mining equipment, based on the terms of the sales agreement. The Company’s short-term investments consist of the available for sale common stock in Golden Tag and are classified within Level 1 of the fair value hierarchy (see Note 3). At June 30, 2017 and December 31, 2016, the Company 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 a price lower than the current exercise price of the warrants (see Note 13). The Company assesses the fair value of its warrant liability at the end of each reporting period, with changes in the value recorded as “ Warrant derivative (loss) gain ” 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, 2017, and December 31, 2016. At December 31, 2016, fair value was 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. At June 30, 2017, the valuation was based on a Black Scholes model using similar parameters established by the third-party expert in its valuation performed at December 31, 2016. In addition to the warrant exercise prices (see Note 13) other significant inputs to the warrant valuation model at June 30, 2017 and December 31, 2016 included the following: June 30, December 31, 2017 2016 Company's ending stock price $ 0.56 $ 0.58 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 and derivative liabilities. Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Warrant Liabilities (in thousands) Ending balance at December 31, 2016 $ 1,898 Change in estimated fair value (364) Ending balance at June 30, 2017 $ 1,534 Non-recurring Fair Value Measurements There were no non-recurring fair value measurements at December 31, 2016 or June 30, 2017. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2017 | |
Income Taxes | |
Income Taxes | 12. 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 three months ended June 30, 2017 and 2016 respectively the Company did not recognize any 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, except as described in this paragraph, 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, 2017 and as of December 31, 2016, 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, 2017 or December 31, 2016. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2017 | |
Equity | |
Equity | 13. Equity At the Market Offering Agreement In December 2016, the Company entered into an at-the-market offering agreement (the “ATM Agreement”) with H. C. Wainwright & Co., LLC (“ Wainwright ”), under which the Company may, from time to time, issue and sell shares of the Company’s common stock through Wainwright as sales manager in an at-the-market offering under a prospectus supplement for aggregate sales proceeds of up to $5.0 million (the “ATM Program”) or a maximum of 10 million shares. The ATM Agreement will remain in full force and effect until the earlier of December 31, 2018, or the date that the ATM Agreement is terminated in accordance with the terms therein. Offers or sales of common shares under the ATM Program will be made only in the United States and no offers or sales of common shares under the ATM Agreement will be made in Canada. The common stock will be distributed at the market prices prevailing at the time of sale. As a result, prices of the common stock sold under the ATM Program may vary as between purchasers and during the period of distribution. The ATM Agreement provides that Wainwright will be entitled to compensation for its services at a commission rate of 2.0% of the gross sales price per share of common stock sold. The Company reimbursed certain legal expenses of Wainwright totaling $50,000 and incurred additional accounting, legal, and regulatory costs of approximately $109,000 in connection with establishing the ATM Program. Such costs have been deferred and will be amortized to equity as sales are completed under the ATM Program. At June 30, 2017, the unamortized costs appear on the accompanying Consolidated Balance Sheets as “ Prepaid expense and other assets” . During the six months ended June 30, 2017 the Company sold an aggregate of approximately 1,011,000 common shares under the ATM Program at an average price of $0.70 per common share for gross proceeds of approximately $712,000. The Company paid cash commissions and other nominal transaction fees to Wainwright totaling $16,000 or 2.2% of the gross proceeds and amortized approximately $22,000 of deferred accounting, legal and regulatory costs resulting in a net amount of approximately $674,000 that has been recorded as equity in the Condensed Consolidated Balance Sheets. During the six months ended June 30, 2017 the Company also incurred approximately $15,000 in additional accounting, legal, and regulatory costs associated with the ATM Program that were included in “ General and administrative costs ” in the Condensed Consolidated Statement of Operations and Comprehensive Loss. Equity Incentive Plans Under the Company’s Amended and Restated 2009 Equity Incentive Plan (the “Equity Plan”) 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, 2017 and the changes during the six months then ended: Weighted Average Grant Date Fair Number of Value Per Restricted Stock Grants Shares Share Outstanding at December 31, 2016 100,000 $ 0.63 Granted during the period — — Restrictions lifted during the period — — Forfeited during the period — — Outstanding at June 30, 2017 100,000 $ 0.63 For the six months ended June 30, 2017 the Company recognized approximately $15,000 of compensation expense related to the restricted stock grants. The Company expects to recognize additional compensation expense related to these awards of approximately $48,000 over the next thirty months. The following table summarizes the status of the Company’s stock option grants issued under the Equity Plan at June 30, 2017 and the changes during the six months then ended: Weighted Average Exercise Number of Price Per Equity Plan Options Shares Share Outstanding at December 31, 2016 95,810 $ 8.02 Granted during the period — — Forfeited or expired during period — — Exercised during period — — Outstanding at June 30, 2017 95,810 $ 8.02 Exercisable at end of period 95,810 $ 8.02 Granted and vested 95,810 $ 8.02 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 The following table summarizes the status of the RSU grants issued under the Deferred Compensation Plan at June 30, 2017 and the changes during the six months then ended: Weighted Average Grant Date Fair Number of Value Per Restricted Stock Units Shares Share Outstanding at December 31, 2016 1,607,317 $ 1.28 Granted during the period 280,000 0.48 Restrictions lifted during the period — — Forfeited during the period — — Outstanding at June 30, 2017 1,887,317 $ 1.16 For the six months ended June 30, 2017 the Company recognized approximately $60,000 of compensation expense related to the RSU grants. The Company expects to recognize additional compensation expense related to the RSU grants of approximately $120,000 over the next 10 months. Key Employee Long-Term Incentive Plan The Company’s 2013 Key Employee Long-Term Incentive Plan (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 2009 Equity Plan, measured generally by the price of the Company’s common stock on the settlement date. KELTIP 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. The KELTIP Units are recorded as a liability, included in “ Accounts payable and other accrued liabilities ” in the Condensed Consolidated Balance Sheets. On May 23, 2017 and May 19, 2016, the Company awarded 435,000 and 585,000 KELTIP Units respectively, to two officers of the Company and recorded approximately $0.2 million and $0.3 million respectively, of compensation expense, included in “ Stock based compensation ” in the Condensed Consolidated Statement of Operations and Comprehensive Loss. The KELTIP Units are marked to market at the end of each reporting period and for the six months ended June 30, 2017 the Company recognized approximately $23,000 of additional compensation expense. There were 1,020,000 and 585,000 KELTIP Units outstanding at June 30, 2017 and at December 31, 2016, respectively. Common stock warrants The following table summarizes the status of the Company’s common stock warrants at June 30, 2017 and the changes during the six months then ended: Weighted Number of Average Exercise Underlying Price Per Common Stock Warrants Shares Share Outstanding at December 31, 2016 17,578,950 $ 2.17 Granted during period — — Dilution adjustment 52,674 Expired during period — Exercised during period — Outstanding at June 30, 2017 17,631,624 $ 2.17 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. A total of 3,431,649 warrant shares were issued and became exercisable on March 20, 2013 and will expire on September 19, 2017, five years from the date of issuance. In September 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 warrant shares were issued that became exercisable on March 11, 2015 and will expire on September 10, 2019, five years from the date of issuance. In May 2016, the Company issued 8.0 million registered shares of common stock at a purchase price of $0.50 per share in a registered direct offering (the “Offering”) resulting in gross proceeds of $4.0 million. In connection with the Offering, each investor received an unregistered warrant to purchase three ‐ quarters of a share of common stock for each share of common stock purchased. The resulting 6,000,000 warrant shares have an exercise price of $0.75 per share, became exercisable on November 7, 2016 and will expire on November 6, 2021, five years from the initial exercise date. The warrants issued in September 2012 and September 2014 are 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 and the number of warrant shares outstanding 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. The May 2016 warrants are not subject to anti-dilution and the warrants are recorded as equity. Pursuant to the anti-dilution clauses in the September 2012 and 2014 warrant agreements, the exercise price of the warrants has been adjusted downward as a result of the subsequent issuance of the Company’s common stock in separate transactions, including the September 2014 registered public offering and private placement, the conversion of the Sentient Note, the May 2016 Offering and private placement and the ATM Program. As a result of these transactions, the number of shares of common stock issuable upon exercise of the September 2012 warrants has increased from the original 3,431,649 shares to 6,168,709 shares (2,737,060 share increase) and the exercise price has been reduced from the original $8.42 per share to $4.68 per share. The number of shares of common stock issuable upon exercise of the September 2014 warrants has increased from the original 4,746,000 shares to 5,462,915 shares (716,915 share increase) and the exercise price has been reduced from the original $1.21 per share to $0.87 per share. At June 30, 2017, the total liability recorded for the 2012 and 2014 warrants was approximately $1.5 million, consisting of approximately $1.5 million for the 2014 warrants and $5,000 for the 2012 warrants. The warrant liability has been recorded at fair value as of June 30, 2017, based primarily on a Black Scholes model, which falls within Level 3 of the fair value hierarchy (see Note 11). |
Revenue and Related Costs
Revenue and Related Costs | 6 Months Ended |
Jun. 30, 2017 | |
Revenue and Related Costs | |
Revenue and Related Costs | 14. Revenue and Related Costs Oxide Plant Lease and Oxide Plant Lease Costs For the six months ended June 30, 2017 the Company recorded revenue of approximately $3.3 million and related costs of approximately $1.1 million associated with the lease of the Velardeña Properties oxide plant. The Company recognizes oxide plant lease fees and reimbursements for labor, utility and other costs as “ Revenue: Oxide plant lease ” in the Condensed Consolidated Statements of Operations and Comprehensive Loss following the guidance of ASC 605 regarding "income statement characterization of reimbursements received for "out-of-pocket" expenses incurred" and "reporting revenue gross as a principal versus net as an agent". ASC 605 supports recording as gross revenue fees received for the reimbursement of expenses in situations where the recipient is the primary obligor and has certain discretion in the incurrence of the reimbursable expense. The actual costs incurred for reimbursed direct labor and utility costs are reported as “ Oxide plant lease costs ” in the Condensed Consolidated Statements of Operations and Comprehensive Loss. The Company recognizes lease fees during the period the fees are earned per the terms of the lease. For the six months ended June 30, 2016 the Company recorded revenue of approximately $3.0 million and related costs of approximately $0.9 million associated with the lease of the Velardeña Properties oxide plant. |
Interest and Other Income
Interest and Other Income | 6 Months Ended |
Jun. 30, 2017 | |
Interest and Other Income. | |
Interest and Other Income | 15. Interest and Other Income For the six months ended June 30, 2017 and 2016 the Company had only a nominal amount of interest and other income. The 2017 amount is primarily related to interest on amounts receivable from the sale of mining equipment as discussed in Note 7. |
Derivative Loss
Derivative Loss | 6 Months Ended |
Jun. 30, 2017 | |
Derivative Loss | |
Derivative Loss | 16. Derivative Loss During the six months ended June 30, 2017 the Company recorded approximately $0.4 million of warrant derivative gain related to a decrease in the fair value of the liability recorded for warrants to acquire the Company’s common stock (see Note 13). During the six months ended June 30, 2016 the Company recorded approximately $2.3 million of warrant derivative loss related to an increase in the fair value of the liability recorded for warrants to acquire the Company’s common stock. The warrant liability has been recorded at fair value based on the Black Scholes model as of June 30, 2017, and primarily on a valuation performed by a third-party expert using a Monte Carlo simulation for December 31, 2016, both of which fall within Level 3 of the fair value hierarchy (see Note 11). The third party 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 third party valuation model included prices for the warrants disclosed above, the probability of an additional issuance of the Company’s common stock at a lower price than the current warrant exercise price and the inputs in the table below for the respective periods. Significant inputs to the Black Scholes model included inputs developed in the third party valuation model. During the six months ended June 30, 2016 the Company recorded approximately $0.8 million of derivative loss related to an increase in the fair value of the derivative liability related to the Sentient Loan (see Note 10). The derivative liability was recorded at fair value at June 30, 2016 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 11). Significant inputs to the valuation model included: 1) future variations in the Company’s stock price, and 2) the probability of entering into an equity transaction prior to the loan maturity date that would lower the conversion price. At June 30, 2017 and December 31, 2016 the Sentient Loan had been fully converted. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 6 Months Ended |
Jun. 30, 2017 | |
Supplemental Cash Flow Information | |
Supplemental Cash Flow Information | 17. Supplemental Cash Flow Information The following table reconciles net loss for the period to cash used in operations: Six Months Ended June 30, 2017 2016 (in thousands) Cash flows from operating activities: Net loss $ (1,170) $ (10,176) Adjustments to reconcile net loss to net cash used in operating activities: Amortization and depreciation 318 971 Accretion of asset retirement obligation 97 97 Asset write off — 34 Gain on reduction of asset retirement obligation (56) — Gain on sale of assets (596) (45) Amortization of deferred loan costs — 57 Warrant liability fair market adjustment (363) 2,276 Derivative liability fair market adjustment — 778 Accretion of loan discount — 372 Loss on debt extinguishment — 1,653 Deferred income taxes — (26) Stock compensation 307 571 Changes in operating assets and liabilities: Decrease (increase) in trade accounts receivable 525 (112) (Increase) decrease in prepaid expenses and other assets (47) 3 (Increase) decrease in inventories (36) 40 (Increase) decrease in value added tax recoverable, net (187) 347 Increase in accrued interest payable net of amounts capitalized — 85 Decrease in deferred revenue — (500) Decrease in reclamation liability (3) (8) Decrease in accounts payable and accrued liabilities (47) (183) Decrease in deferred leasehold payments (11) (8) Net cash used in operating activities $ (1,269) $ (3,774) |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies | |
Commitments and Contingencies | 18. Commitments and Contingencies At June 30, 2017 and December 31, 2016, the Company had no gain or loss contingencies. The Company has certain purchase and lease commitments as set forth in the Company’s Form 10-K for the year ended December 31, 2016. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2017 | |
Segment Information | |
Segment Information | 19. 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 Costs Depreciation, Quevar, Velardeña Three Months Ended Applicable Depletion and and Administrative Pre-Tax (gain) Capital June 30, 2017 Revenue to Sales Amortization Expense loss Total Assets Expenditures Velardeña Properties $ 1,692 $ 548 $ 35 $ 381 $ (877) $ — Corporate, Exploration & Other — — 95 1,510 912 — $ 1,692 $ 548 $ 130 $ 1,891 $ 35 $ — Six Months Ended June 30, 2017 Velardeña Properties $ 3,336 $ 1,085 $ 126 $ 738 $ (1,651) $ 7,326 $ — Corporate, Exploration & Other — — 192 3,211 2,821 5,929 — $ 3,336 $ 1,085 $ 318 $ 3,949 $ 1,170 $ 13,255 $ — Three Months Ended June 30, 2016 Velardeña Properties $ 1,576 $ 455 $ 313 $ 779 $ 33 $ 19 Corporate, Exploration & Other — — 108 2,444 3,882 1 $ 1,576 $ 455 $ 421 $ 3,223 $ 3,915 $ 20 Six Months Ended June 30, 2016 Velardeña Properties $ 3,039 $ 929 $ 733 $ 1,589 $ 244 $ 7,111 $ 19 Corporate, Exploration & Other — — 238 4,378 9,958 8,332 1 $ 3,039 $ 929 $ 971 $ 5,967 $ 10,202 $ 15,443 $ 20 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions | |
Related Party Transactions. | 20. Related Party Transactions The following sets forth information regarding transactions between the Company (and its subsidiaries) and its officers, directors and significant stockholders. Sale of Equipment: In August 2016, the Company sold certain mining equipment to Minera Indé, an indirect subsidiary of Sentient, for $687,000 (see Note 7), in a transaction approved by the Company’s Audit Committee and Board of Directors. At June 30, 2017 Sentient holds approximately 46% of the Company’s 90.0 million shares of issued and outstanding common stock. The equipment sold was excess equipment held at the Company’s Velardeña Properties that the Company did not expect to use. The Company used a third party consultant with experience in the used mining equipment market in Mexico to determine a fair value. The Company believes the price paid was at least equal to the fair market value of the equipment had it been sold through auction or in the open market. The Company received 10% of the sales price at the closing of the sale in August 2016, with the remainder, plus interest on the unpaid balance at an annual rate of 10%, due in February 2017. With the approval of a Special Committee of the Company’s Board of Directors, the Company and Minera Indé amended the original equipment sale on March 31, 2017 to include the sale of an additional piece of excess equipment for $185,000 and extend the time for payment relating to the original equipment sale. Upon execution of the amendment the Company received an additional payment of $100,000. The remaining principal and interest balance, plus additional interest on the unpaid balance at an annual rate of 10%, was amended to be due in August 2017. The Company recorded a gain of $105,000 on the sale of the additional equipment, included in “ Other operating income ” in the accompanying Condensed Consolidated Statements of Operation and Comprehensive Loss, equal to the gross proceeds less the remaining basis in the equipment. On May 2, 2017, the Company received approximately $750,000 from Minera Indé as payment in full for the remaining balance due related to the equipment sale, including interest through that date. Administrative Services: Beginning in August 2016, the Company began providing limited accounting and other administrative services to Minera Indé, an indirect subsidiary of Sentient. The services are provided locally in Mexico by the administrative staff at the Company’s Velardeña Properties. The Company charges Minera Indé $15,000 per month for the services, which provides reimbursement to the Company for its costs incurred plus a small profit margin. Amounts received under the arrangement reduce costs incurred for the care and maintenance of the Velardeña Properties and allows the Company to maintain a larger more experienced staff at the Velardeña Properties to support the oxide plant lease and potential future mining or processing activities. The Company’s Board of Directors and Audit Committee approved the agreement. For the six months ended June 30, 2017 the Company charged Minera Indé approximately $90,000 for services, offsetting costs that are recorded in “ Velardeña shutdown and care and maintenance ” in the Condensed Consolidated Statements of Operations and Comprehensive Loss. |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jun. 30, 2017 | |
Subsequent Event. | |
Subsequent Event | 21. Subsequent Event On August 2, 2017, the Company granted Hecla an option to extend the oxide plant lease for an additional period of up to two years ending no later than December 31, 2020 (the “Extension Period”) in exchange for a $1.0 million upfront cash payment and the purchase of $1.0 million, or approximately 1.8 million shares of the Company’s common stock (the “Consideration Shares”), issued at par at a price of $0.55 per share, based on an undiscounted 30-day volume weighted average stock price. The option and lease extension were memorialized in (i) an Option Agreement dated August 2, 2017 among the Company and Hecla Mining Company (the “Option Agreement”), and (ii) a Second Amendment to Master Agreement and Lease Agreement dated August 2, 2017 among Minera William S.A. de C.V., an indirect subsidiary of the Company, and Minera Hecla S.A. de C.V., an indirect subsidiary of Hecla Mining Company (the “Second Amendment”). Under the Second Amendment, Hecla must exercise the option to extend the lease no later than October 3, 2018. All of the fixed fees and throughput related charges remain the same as under the original lease. Similar volume limitations apply to any required future tailings expansions, which Hecla will fund, leaving unused at the end of the lease term an agreed amount of capacity in the expanded tailings facility. Pursuant to the Second Amendment, Hecla will have the right to terminate the lease during the Extension Period for any reason with 120 days’ notice. Hecla will also have a one-time right of first refusal to continue to lease the plant following a termination notice through December 31, 2020 if we decide to use the oxide plant for our own purposes before December 31, 2020. The Consideration Shares were offered and sold without registration under the Securities Act of 1933, as amended (the “Act”) in reliance on the exemptions provided by Section 4(a)(2) of the Act and/or Regulation D promulgated thereunder. Under the terms of the Option Agreement, the Company agreed to register with the SEC the resale of the Consideration Shares. The agreement requires that the Company use its commercially reasonable efforts to file a registration statement with the SEC and have it declared effective no later than six months from the date of issuance of the Consideration Shares. The Company expects to recognize the $1.0 million of income from granting the option over the expected life of the lease from August 2, 2017 through December 31, 2020 on a straight-line basis, including such income in “ Other operating income ” in the Condensed Consolidated Statements of Operation and Comprehensive Loss. The $1.0 million received for the Consideration Shares, net of any direct charges, will be recorded as equity in the Condensed Consolidated Balance Sheets for the quarter ended September 30, 2017. |
Cash and Cash Equivalents and28
Cash and Cash Equivalents and Short-Term Investments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Cash and Cash Equivalents and Short-Term Investments | |
Schedule of short term-investments | Estimated Carrying June 30, 2017 Cost Fair Value Value (in thousands) Investments: Short-term: Available for sale common stock $ 275 $ 231 $ 231 Total available for sale 275 231 231 Total short term $ 275 $ 231 $ 231 December 31, 2016 Investments: Short-term: Available for sale common stock $ 275 $ 334 $ 334 Total available for sale 275 334 334 Total short term $ 275 $ 334 $ 334 |
Prepaid Expenses and Other As29
Prepaid Expenses and Other Assets (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Prepaid Expenses and Other Assets | |
Schedule of prepaid expenses and other current assets | June 30, December 31, 2017 2016 (in thousands) Prepaid insurance $ 308 $ 296 Deferred offering costs 137 153 Recoupable deposits and other 205 129 $ 650 $ 578 |
Inventories, net (Tables)
Inventories, net (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Inventories, net | |
Schedule of inventories at the Velardena Properties | June 30, December 31, 2017 2016 (in thousands) Material and supplies $ 281 $ $ 281 $ 245 |
Property, Plant and Equipment31
Property, Plant and Equipment, Net (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment, Net | |
Schedule of components of property, plant and equipment | June 30, December 31, 2017 2016 (in thousands) Mineral properties $ 9,352 $ 9,352 Exploration properties 2,518 2,518 Royalty properties 200 200 Buildings 4,221 4,386 Mining equipment and machinery 16,055 16,351 Other furniture and equipment 952 952 Asset retirement cost 865 992 34,163 34,751 Less: Accumulated depreciation and amortization (25,454) (25,516) $ 8,709 $ 9,235 |
Accounts Payable and Other Ac32
Accounts Payable and Other Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Accounts Payable and Other Accrued Liabilities | |
Schedule of accounts payable and other accrued liabilities | June 30, December 31, 2017 2016 (in thousands) Accounts payable and accruals $ 287 $ 344 Accrued employee compensation and benefits 1,113 880 $ 1,400 $ 1,224 |
Asset Retirement Obligation a33
Asset Retirement Obligation and Reclamation Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Asset Retirement Obligation and Reclamation Liabilities | |
Summary of activity in the Velardena Properties ARO | Six Months Ended June 30, 2017 2016 (in thousands) Beginning balance $ 2,380 $ 2,480 Changes in estimates, and other (128) (293) Accretion expense 97 50 Ending balance $ 2,349 $ 2,237 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Measurements | |
Schedule of financial assets and liabilities at fair value | Level 1 Level 2 Level 3 Total (in thousands) At June 30, 2017 Assets: Cash and cash equivalents $ 2,726 $ — $ — $ 2,726 Trade accounts receivable 469 — — 469 Trade accounts receivable - related party 4 — — 4 Short-term investments 231 — — 231 $ 3,430 $ — $ — $ 3,430 Liabilities: Warrant liability - related party $ — $ — $ 813 $ 813 Warrant liability — — 721 721 $ — $ — $ 1,534 $ 1,534 At December 31, 2016 Assets: Cash and cash equivalents $ 2,588 $ — $ — $ 2,588 Trade accounts receivable 380 — — 380 Trade accounts receivable - related party 643 — — 643 Short-term investments 334 — — 334 $ 3,945 $ — $ — $ 3,945 Liabilities: Warrant liability - related party $ — $ — $ 976 $ 976 Warrant liability — — 922 922 $ — $ — $ 1,898 $ 1,898 |
Schedule of significant inputs to the valuation model | June 30, December 31, 2017 2016 Company's ending stock price $ 0.56 $ 0.58 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) Ending balance at December 31, 2016 $ 1,898 Change in estimated fair value (364) Ending balance at June 30, 2017 $ 1,534 |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Equity | |
Schedule of status of the restricted stock grants issued under the Equity Plan | Weighted Average Grant Date Fair Number of Value Per Restricted Stock Grants Shares Share Outstanding at December 31, 2016 100,000 $ 0.63 Granted during the period — — Restrictions lifted during the period — — Forfeited during the period — — Outstanding at June 30, 2017 100,000 $ 0.63 |
Schedule of status of the stock option grants issued under the Equity Plan | Weighted Average Exercise Number of Price Per Equity Plan Options Shares Share Outstanding at December 31, 2016 95,810 $ 8.02 Granted during the period — — Forfeited or expired during period — — Exercised during period — — Outstanding at June 30, 2017 95,810 $ 8.02 Exercisable at end of period 95,810 $ 8.02 Granted and vested 95,810 $ 8.02 |
Schedule of restricted stock units | Weighted Average Grant Date Fair Number of Value Per Restricted Stock Units Shares Share Outstanding at December 31, 2016 1,607,317 $ 1.28 Granted during the period 280,000 0.48 Restrictions lifted during the period — — Forfeited during the period — — Outstanding at June 30, 2017 1,887,317 $ 1.16 |
Summary of the status of the Company's common stock warrants | Weighted Number of Average Exercise Underlying Price Per Common Stock Warrants Shares Share Outstanding at December 31, 2016 17,578,950 $ 2.17 Granted during period — — Dilution adjustment 52,674 Expired during period — Exercised during period — Outstanding at June 30, 2017 17,631,624 $ 2.17 |
Supplemental Cash Flow Inform36
Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Supplemental Cash Flow Information | |
Schedule of reconciliation of net loss for the period to cash used in operations | Six Months Ended June 30, 2017 2016 (in thousands) Cash flows from operating activities: Net loss $ (1,170) $ (10,176) Adjustments to reconcile net loss to net cash used in operating activities: Amortization and depreciation 318 971 Accretion of asset retirement obligation 97 97 Asset write off — 34 Gain on reduction of asset retirement obligation (56) — Gain on sale of assets (596) (45) Amortization of deferred loan costs — 57 Warrant liability fair market adjustment (363) 2,276 Derivative liability fair market adjustment — 778 Accretion of loan discount — 372 Loss on debt extinguishment — 1,653 Deferred income taxes — (26) Stock compensation 307 571 Changes in operating assets and liabilities: Decrease (increase) in trade accounts receivable 525 (112) (Increase) decrease in prepaid expenses and other assets (47) 3 (Increase) decrease in inventories (36) 40 (Increase) decrease in value added tax recoverable, net (187) 347 Increase in accrued interest payable net of amounts capitalized — 85 Decrease in deferred revenue — (500) Decrease in reclamation liability (3) (8) Decrease in accounts payable and accrued liabilities (47) (183) Decrease in deferred leasehold payments (11) (8) Net cash used in operating activities $ (1,269) $ (3,774) |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Information | |
Schedule of financial information relating to segments | Exploration, El Costs Depreciation, Quevar, Velardeña Three Months Ended Applicable Depletion and and Administrative Pre-Tax (gain) Capital June 30, 2017 Revenue to Sales Amortization Expense loss Total Assets Expenditures Velardeña Properties $ 1,692 $ 548 $ 35 $ 381 $ (877) $ — Corporate, Exploration & Other — — 95 1,510 912 — $ 1,692 $ 548 $ 130 $ 1,891 $ 35 $ — Six Months Ended June 30, 2017 Velardeña Properties $ 3,336 $ 1,085 $ 126 $ 738 $ (1,651) $ 7,326 $ — Corporate, Exploration & Other — — 192 3,211 2,821 5,929 — $ 3,336 $ 1,085 $ 318 $ 3,949 $ 1,170 $ 13,255 $ — Three Months Ended June 30, 2016 Velardeña Properties $ 1,576 $ 455 $ 313 $ 779 $ 33 $ 19 Corporate, Exploration & Other — — 108 2,444 3,882 1 $ 1,576 $ 455 $ 421 $ 3,223 $ 3,915 $ 20 Six Months Ended June 30, 2016 Velardeña Properties $ 3,039 $ 929 $ 733 $ 1,589 $ 244 $ 7,111 $ 19 Corporate, Exploration & Other — — 238 4,378 9,958 8,332 1 $ 3,039 $ 929 $ 971 $ 5,967 $ 10,202 $ 15,443 $ 20 |
Basis of Preparation of Finan38
Basis of Preparation of Financial Statements and Nature of Operations (Details) $ / shares in Units, $ in Thousands, shares in Millions | Aug. 02, 2017USD ($)$ / sharesshares | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)property | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) |
Shutdown and care and maintenance costs | $ 369 | $ 546 | $ 719 | $ 1,133 | ||
Number of exploration properties | property | 10 | |||||
Velardena properties | ||||||
Interest acquired (as a percent) | 100.00% | 100.00% | ||||
Employee severance and other costs | $ 2,000 | |||||
Shutdown and care and maintenance costs | $ 700 | |||||
Quarterly holding costs expected with suspended operations | 400 | |||||
Oxide Plant | ||||||
Expected lease proceeds | $ 4,700 | |||||
Subsequent Event | Oxide Plant | ||||||
Expected lease proceeds | $ 1,000 | |||||
Renewal term | 2 years | |||||
Gross proceeds from common stock sale | $ 1,000 | |||||
Common stock issued (in shares) | shares | 1.8 | |||||
Sale price (in dollars per shares) | $ / shares | $ 0.55 | |||||
Volume weighted average stock price period | 30 days |
New Accounting Pronouncements (
New Accounting Pronouncements (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
New Accounting Pronouncements | ||||
Warrant liability | $ 1,500 | $ 1,500 | ||
Warrant derivative gain (loss) | $ 425 | $ (1,096) | $ 363 | $ (2,276) |
Cash and Cash Equivalents and40
Cash and Cash Equivalents and Short-term Investments (Details) - USD ($) $ in Thousands | 6 Months Ended | 24 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Investments: | ||
Available for sale common stock | $ 275 | $ 275 |
Total available for sale | 275 | 275 |
Total short term | 275 | 275 |
Total short term | 231 | 334 |
Financial institutions minimum net worth | $ 1,000,000 | |
Golden Tag | ||
Investments: | ||
Shares received | 7,500,000 | |
Ownership in property (as a percent) | 10.00% | |
Estimated Fair Value. | ||
Investments: | ||
Available for sale common stock | $ 231 | 334 |
Total available for sale. | 231 | 334 |
Total short term | 231 | 334 |
Carrying Value. | ||
Investments: | ||
Available for sale common stock | 231 | 334 |
Total available for sale. | 231 | 334 |
Total short term | $ 231 | $ 334 |
San Diego | Golden Tag | ||
Investments: | ||
Ownership in property (as a percent) | 50.00% |
Prepaid Expenses and Other As41
Prepaid Expenses and Other Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Prepaid Expenses and Other Assets | ||
Prepaid insurance | $ 308 | $ 296 |
Deferred offering costs | 137 | 153 |
Recoupable deposits and other | 205 | 129 |
Prepaid expenses and other assets | $ 650 | $ 578 |
Inventories, net (Details)
Inventories, net (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Inventories, net | ||
Material and supplies | $ 281 | $ 245 |
Inventories, net | 281 | 245 |
Inventory write down | $ 200 | $ 200 |
Value added tax receivable, N43
Value added tax receivable, Net (Details) - USD ($) | 1 Months Ended | 6 Months Ended | |
Jul. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | |
Value added tax receivable, net | |||
VAT receivables offset against VAT payable | $ 15,000 | ||
Proceeds from VAT refunds | $ 200,000 | ||
Reversed valuation allowance | 200,000 | ||
Value added tax receivable, net | $ 185,000 | $ 5,000 |
Property, Plant and Equipment44
Property, Plant and Equipment, Net (Details) | May 02, 2017USD ($) | Mar. 31, 2017USD ($) | May 31, 2017USD ($) | Oct. 31, 2016USD ($) | Aug. 31, 2016USD ($)item | Apr. 30, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) |
Property, plant and equipment | |||||||||||
Property, plant and equipment, gross | $ 34,163,000 | $ 34,751,000 | |||||||||
Less: Accumulated depreciation & amortization | (25,454,000) | (25,516,000) | |||||||||
Property, plant and equipment, net | 8,709,000 | 9,235,000 | |||||||||
Payments to acquire property | $ 20,000 | $ 20,000 | |||||||||
Proceeds from sale of assets | 733,000 | 50,000 | |||||||||
Related party receivable | 643,000 | ||||||||||
Gain on sale of equipment | 596,000 | $ 45,000 | |||||||||
Mineral properties | |||||||||||
Property, plant and equipment | |||||||||||
Property, plant and equipment, gross | 9,352,000 | 9,352,000 | |||||||||
Exploration properties | |||||||||||
Property, plant and equipment | |||||||||||
Property, plant and equipment, gross | 2,518,000 | 2,518,000 | |||||||||
Royalty properties | |||||||||||
Property, plant and equipment | |||||||||||
Property, plant and equipment, gross | 200,000 | 200,000 | |||||||||
Buildings | |||||||||||
Property, plant and equipment | |||||||||||
Property, plant and equipment, gross | 4,221,000 | 4,386,000 | |||||||||
Mining equipment and machinery | |||||||||||
Property, plant and equipment | |||||||||||
Property, plant and equipment, gross | 16,055,000 | 16,351,000 | |||||||||
Other furniture and equipment | |||||||||||
Property, plant and equipment | |||||||||||
Property, plant and equipment, gross | 952,000 | 952,000 | |||||||||
Asset retirement cost | |||||||||||
Property, plant and equipment | |||||||||||
Property, plant and equipment, gross | 865,000 | $ 992,000 | |||||||||
Celaya | Electrum | |||||||||||
Property, plant and equipment | |||||||||||
Payments to acquire property | $ 200,000 | ||||||||||
Interest in joint venture | 60.00% | ||||||||||
Exploration expenditures in first three year of the agreement | $ 2,500,000 | ||||||||||
Exploration expenditures in second three year of the agreement | $ 2,500,000 | ||||||||||
Additional interest in joint venture (as a percent) | 20.00% | ||||||||||
Net profit interest | 10.00% | ||||||||||
Celaya | Electrum | Minimum | |||||||||||
Property, plant and equipment | |||||||||||
Earn-in obligation | $ 500,000 | ||||||||||
Celaya | Electrum | Maximum | |||||||||||
Property, plant and equipment | |||||||||||
Interest in joint venture | 80.00% | ||||||||||
Zacatecas Properties | Santacruz | |||||||||||
Property, plant and equipment | |||||||||||
Proceeds from sale of assets | $ 200,000 | ||||||||||
Zacatecas Properties | Santacruz | Sale, not discontinued operations | |||||||||||
Property, plant and equipment | |||||||||||
Proceeds from sale of assets | $ 300,000 | $ 200,000 | |||||||||
Total consideration | $ 1,500,000 | ||||||||||
Due six months after signing agreement | 300,000 | ||||||||||
Due 12 months after signing agreement | 500,000 | ||||||||||
Minera Inde | Sale, not discontinued operations | Sale of Equipment | |||||||||||
Property, plant and equipment | |||||||||||
Sale of mining equipments | $ 687,000 | ||||||||||
Proceeds from sale of assets | $ 750,000 | $ 100,000 | |||||||||
Net book value of disposals | $ 185,000 | ||||||||||
Sales price received (as a percent) | 10.00% | ||||||||||
Interest rate on receivable (as a percent) | 10.00% | 10.00% | |||||||||
Minera Inde | Velardena properties | Sale, not discontinued operations | Sale of Equipment | |||||||||||
Property, plant and equipment | |||||||||||
Number of haul trucks sold | item | 2 | ||||||||||
Number of scoop trams sold | item | 2 | ||||||||||
Sale of mining equipments | $ 687,000 | ||||||||||
Proceeds from sale of assets | $ 750,000 | $ 100,000 | $ 69,000 | ||||||||
Net book value of disposals | $ 185,000 | ||||||||||
Sales price received (as a percent) | 10.00% | ||||||||||
Related party receivable | $ 618,000 | ||||||||||
Interest rate on receivable (as a percent) | 10.00% | ||||||||||
Other operating income | Velardena properties | Sale, not discontinued operations | Sale of Equipment | |||||||||||
Property, plant and equipment | |||||||||||
Gain on sale of equipment | $ 105,000 |
Accounts Payable and Other Ac45
Accounts Payable and Other Accrued Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Accounts payable and accruals | $ 287 | $ 344 |
Accrued employee compensation and benefits | 1,113 | 880 |
Accounts payable and other accrued liabilities | 1,400 | 1,224 |
Accrued vacation | 300 | 300 |
Withholding taxes and benefits payable | 800 | 600 |
VAT payable, net | 100 | |
KELTIP | ||
Withholding taxes and benefits payable | 600 | |
Velardena properties | ||
Accounts payable and accruals | 100 | 100 |
Withholding taxes and benefits payable | 200 | 200 |
Corporate, Exploration & Other | ||
Accounts payable and accruals | $ 200 | 200 |
Withholding taxes and benefits payable | $ 300 |
Asset Retirement Obligation a46
Asset Retirement Obligation and Reclamation Liabilities (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | Jun. 30, 2012 | Mar. 31, 2012 | |
Asset retirement and reclamation liabilities | $ 2,434,000 | $ 2,434,000 | |||
Summary of activity in the Velardena Operations ARO | |||||
ARO, Beginning balance | 2,434,000 | ||||
Accretion expense | 97,000 | $ 97,000 | |||
ARO, Ending balance | 2,402,000 | 2,434,000 | |||
Velardena properties | |||||
Asset retirement and reclamation liabilities | 2,380,000 | 2,480,000 | 2,480,000 | $ 1,900,000 | $ 3,500,000 |
Amortization expense related to the ARC | 4,000 | ||||
Summary of activity in the Velardena Operations ARO | |||||
ARO, Beginning balance | 2,380,000 | 2,480,000 | 2,480,000 | ||
Changes in estimates, and other | (128,000) | (293,000) | |||
Accretion expense | 97,000 | 50,000 | |||
ARO, Ending balance | 2,349,000 | $ 2,237,000 | 2,380,000 | ||
El Quevar Project | |||||
ARO arising in the period | $ 100,000 | $ 100,000 |
Convertible Note Payable - Re47
Convertible Note Payable - Related Party, Net (Details) | Jun. 10, 2016USD ($)item$ / sharesshares | Feb. 11, 2016USD ($)item$ / sharesshares | Jan. 31, 2016item$ / shares | Oct. 31, 2015USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Oct. 27, 2015USD ($) |
Gain (loss) on debt extinguishment | $ 13,000 | $ (1,653,000) | |||||||
Derivative income (loss) | $ (130,000) | (778,000) | |||||||
Sentient Loan | |||||||||
Principal amount of loan | $ 5,000,000 | ||||||||
Amount of accrued interest converted to equity | $ 34,000 | $ 100,000 | |||||||
Stock price trigger (as a percent) | 90.00% | 90.00% | |||||||
Consecutive trading days, period | item | 15 | 15 | |||||||
Interest rate (as a percent) | 9.00% | ||||||||
Amount of debt converted to equity | $ 1,100,000 | $ 3,900,000 | |||||||
Equity shares issued upon conversion of debt | shares | 4,011,740 | 23,355,000 | |||||||
Exercise price per share of shares converted from debt | $ / shares | $ 0.289 | $ 0.172 | |||||||
Fair value of imbedded derivative | $ 1,100,000 | ||||||||
Debt issuance costs | $ 300,000 | ||||||||
Gain (loss) on debt extinguishment | 1,700,000 | ||||||||
Derivative income (loss) | $ (800,000) | ||||||||
Debt outstanding | $ 0 | $ 0 | |||||||
Sentient Loan | Period Preceding Loan Closure Date | |||||||||
Stock price trigger (in dollars per share) | $ / shares | $ 0.289 | ||||||||
Stock price trigger (as a percent) | 90.00% | ||||||||
Consecutive trading days, period | item | 15 | ||||||||
Sentient Loan | Period Preceding Loan Conversion Date | |||||||||
Stock price trigger (as a percent) | 90.00% | ||||||||
Consecutive trading days, period | item | 15 |
Fair value measurements (Detail
Fair value measurements (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Fair value measurements | ||
Warrant liability - related party | $ 813 | $ 976 |
Fair value Assumptions | ||
Company's ending stock price (in dollars per share) | $ 0.56 | $ 0.58 |
Company's stock volatility (as a percent) | 110.00% | 110.00% |
Risk free interest rate (as a percent) | 1.39% | 1.39% |
Recurring | ||
Fair value measurements | ||
Cash and cash equivalents | $ 2,726 | $ 2,588 |
Trade accounts receivable | 469 | 380 |
Trade accounts receivable - related party | 4 | 643 |
Short-term investments | 231 | 334 |
Assets | 3,430 | 3,945 |
Warrant liability - related party | 813 | 976 |
Warrant liability | 721 | 922 |
Liabilities | 1,534 | 1,898 |
Recurring | Level 1 | ||
Fair value measurements | ||
Cash and cash equivalents | 2,726 | 2,588 |
Trade accounts receivable | 469 | 380 |
Trade accounts receivable - related party | 4 | 643 |
Short-term investments | 231 | 334 |
Assets | 3,430 | 3,945 |
Recurring | Level 3 | ||
Fair value measurements | ||
Warrant liability - related party | 813 | 976 |
Warrant liability | 721 | 922 |
Liabilities | $ 1,534 | $ 1,898 |
Fair value measurements - Level
Fair value measurements - Level 3 (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Warrant Liability | ||
Changes in level 3 | ||
Beginning Balance | $ 1,898 | |
Change in estimated fair value | (364) | |
Ending Balance | 1,534 | |
Non-recurring | ||
Changes in level 3 | ||
Fair value measurements | $ 0 | $ 0 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Income Taxes | ||
Net deferred tax assets | $ 0 | $ 0 |
Net deferred tax liabilities | 0 | 0 |
Unrecognized tax benefits | $ 0 | $ 0 |
Equity - Issue and Conversion (
Equity - Issue and Conversion (Details) - USD ($) | 1 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | May 31, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Proceeds from issuance of common stock | $ 674,000 | $ 3,599,000 | ||
ATM Agreement | ||||
Aggregate value of securities allowed under agreement | $ 5,000,000 | |||
Aggregate securities allowed under agreement (in shares) | 10,000,000 | |||
Commission rate (as a percent) | 2.00% | 2.20% | ||
Legal expenses | $ 50,000 | |||
Equity issue costs | $ 109,000 | |||
Common stock issued (in shares) | 1,011,000 | |||
Sale price (in dollars per shares) | $ 0.70 | |||
Gross proceeds from common stock sale | $ 712,000 | |||
Commission payment | 16,000 | |||
Amortization of deferred cost | 22,000 | |||
Proceeds from issuance of common stock | 674,000 | |||
ATM Agreement | General and administrative costs | ||||
Equity issue costs | $ 15,000 | |||
Registered Offering | ||||
Equity issue costs | $ 4,000,000 | |||
Common stock issued (in shares) | 8,000,000 | |||
Sale price (in dollars per shares) | $ 0.50 |
Equity - Incentive (Details)
Equity - Incentive (Details) | May 23, 2017USD ($)employeeshares | May 19, 2016USD ($)employeeshares | Jun. 30, 2017USD ($)$ / sharesshares | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)$ / sharesshares | Jun. 30, 2016USD ($) |
Additional information | ||||||
Compensation expense | $ | $ 242,000 | $ 539,000 | $ 307,000 | $ 571,000 | ||
Equity Plan | Restricted Stock | ||||||
Number of Shares | ||||||
Outstanding at beginning of year (in shares) | 100,000 | |||||
Outstanding at end of year (in shares) | 100,000 | 100,000 | ||||
Weighted Average Grant Date Fair Value Per Share | ||||||
Outstanding at beginning of year (in dollars per share) | $ / shares | $ 0.63 | |||||
Outstanding at end of year (in dollars per share) | $ / shares | $ 0.63 | $ 0.63 | ||||
Additional information | ||||||
Compensation expense | $ | $ 15,000 | |||||
Additional compensation expense expected to be recognized | $ | $ 48,000 | $ 48,000 | ||||
Period for future recognition of additional compensation expense | 30 months | |||||
Equity Plan | Employee Stock Option | ||||||
Number of Shares | ||||||
Outstanding at beginning of period (in shares) | 95,810 | |||||
Exercised during period (in shares) | 0 | |||||
Outstanding at end of year (in shares) | 95,810 | 95,810 | ||||
Exercisable at end of period (in shares) | 95,810 | 95,810 | ||||
Granted and vested (in shares) | 95,810 | 95,810 | ||||
Weighted Average Exercise Price Per Share | ||||||
Outstanding at beginning of year (in dollars per share) | $ / shares | $ 8.02 | |||||
Exercised during period (in dollars per share) | $ / shares | 0 | |||||
Outstanding at end of year (in dollars per share) | $ / shares | $ 8.02 | 8.02 | ||||
Exercisable at end of period (in dollars per share) | $ / shares | 8.02 | 8.02 | ||||
Granted and vested (in dollars per share) | $ / shares | $ 8.02 | $ 8.02 | ||||
Deferred Compensation Plan | Restricted Stock Units (RSUs) | ||||||
Number of Shares | ||||||
Outstanding at beginning of year (in shares) | 1,607,317 | |||||
Granted during the year (in shares) | 280,000 | |||||
Outstanding at end of year (in shares) | 1,887,317 | 1,887,317 | ||||
Weighted Average Grant Date Fair Value Per Share | ||||||
Outstanding at beginning of year (in dollars per share) | $ / shares | $ 1.28 | |||||
Granted during the year (in dollars per share) | $ / shares | 0.48 | |||||
Outstanding at end of year (in dollars per share) | $ / shares | $ 1.16 | $ 1.16 | ||||
Additional information | ||||||
Number of unrestricted shares Director to receive for vested RSU upon termination from board | 1 | |||||
Compensation expense | $ | $ 60,000 | |||||
Additional compensation expense expected to be recognized | $ | $ 120,000 | $ 120,000 | ||||
Period for future recognition of additional compensation expense | 10 months | |||||
KELTIP | KELTIP Units | ||||||
Number of Shares | ||||||
Outstanding at end of year (in shares) | 1,020,000 | 1,020,000 | ||||
Additional information | ||||||
Additional compensation expense expected to be recognized | $ | $ 23,000 | $ 23,000 | ||||
KELTIP | KELTIP Units | Officers | ||||||
Number of Shares | ||||||
Outstanding at beginning of year (in shares) | 585,000 | |||||
Granted during the year (in shares) | 435,000 | 585,000 | ||||
Additional information | ||||||
Compensation expense | $ | $ 200,000 | $ 300,000 | ||||
Weighted Average Exercise Price Per Share | ||||||
Number of employees | employee | 2 | 2 |
Equity - Warrants (Details)
Equity - Warrants (Details) - USD ($) | 1 Months Ended | 6 Months Ended | |||||
May 31, 2016 | Sep. 30, 2014 | Sep. 30, 2012 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | May 31, 2016 | |
Weighted Average Exercise Price Per Share | |||||||
Proceeds from issuance of common stock | $ 674,000 | $ 3,599,000 | |||||
Warrant liability | $ 1,500,000 | ||||||
Warrant | |||||||
Number of Underlying Shares | |||||||
Outstanding, beginning balance (in shares) | 17,578,950 | ||||||
Dilution adjustment (in shares) | 52,674 | ||||||
Outstanding, end balance (in shares) | 17,631,624 | ||||||
Weighted Average Exercise Price Per Share | |||||||
Outstanding, beginning balance (in dollars per share) | $ 2.17 | ||||||
Outstanding, end balance (in dollars per share) | $ 2.17 | ||||||
Warrants outstanding (in shares) | 17,578,950 | 17,631,624 | |||||
2012 Warrants | |||||||
Number of Underlying Shares | |||||||
Dilution adjustment (in shares) | 2,737,060 | ||||||
Outstanding, end balance (in shares) | 6,168,709 | ||||||
Weighted Average Exercise Price Per Share | |||||||
Outstanding, end balance (in dollars per share) | $ 4.68 | ||||||
Warrants outstanding (in shares) | 6,168,709 | 6,168,709 | |||||
2014 Warrants | |||||||
Number of Underlying Shares | |||||||
Dilution adjustment (in shares) | 716,915 | ||||||
Outstanding, end balance (in shares) | 5,462,915 | ||||||
Weighted Average Exercise Price Per Share | |||||||
Outstanding, end balance (in dollars per share) | $ 0.87 | ||||||
Warrants outstanding (in shares) | 5,462,915 | 5,462,915 | |||||
Level 3 | Warrant | |||||||
Weighted Average Exercise Price Per Share | |||||||
Warrant liability | $ 1,500,000 | ||||||
Level 3 | 2012 Warrants | |||||||
Weighted Average Exercise Price Per Share | |||||||
Warrant liability | 5,000 | ||||||
Level 3 | 2014 Warrants | |||||||
Weighted Average Exercise Price Per Share | |||||||
Warrant liability | $ 1,500,000 | ||||||
Sentient | 2012 Warrants | |||||||
Number of Underlying Shares | |||||||
Granted (in shares) | 3,431,649 | ||||||
Weighted Average Exercise Price Per Share | |||||||
Outstanding, end balance (in dollars per share) | $ 8.42 | ||||||
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 | ||||||
Sentient | 2014 Warrants | |||||||
Number of Underlying Shares | |||||||
Granted (in shares) | 4,746,000 | ||||||
Weighted Average Exercise Price Per Share | |||||||
Outstanding, end balance (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 | 0.5 | ||||||
Registered Offering | |||||||
Weighted Average Exercise Price Per Share | |||||||
Common stock issued (in shares) | 8,000,000 | ||||||
Sale price (in dollars per shares) | $ 0.50 | ||||||
Registered Offering | 2016 Warrants | |||||||
Number of Underlying Shares | |||||||
Outstanding, end balance (in shares) | 6,000,000 | ||||||
Weighted Average Exercise Price Per Share | |||||||
Granted (in dollars per share) | $ 0.75 | ||||||
Number of shares of common stock per capital unit (in shares). | 0.75 | ||||||
Term of warrants | 5 years | ||||||
Warrants outstanding (in shares) | 6,000,000 | 6,000,000 |
Revenue and Related Costs (Deta
Revenue and Related Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Oxide plant lease | $ 1,692 | $ 1,576 | $ 3,336 | $ 3,039 |
Lease related costs | $ 548 | $ 455 | 1,085 | 929 |
Oxide Plant | ||||
Oxide plant lease | 3,300 | 3,000 | ||
Lease related costs | $ 1,100 | $ 900 |
Derivative Loss (Details)
Derivative Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Derivative loss | |||
Derivative income (loss) | $ (130) | $ (778) | |
Sentient Loan | |||
Derivative loss | |||
Derivative income (loss) | (800) | ||
Warrant Liability | |||
Derivative loss | |||
Derivative income (loss) | $ (400) | $ (2,300) |
Supplemental Cash Flow Inform56
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows from operating activities: | ||||
Net loss | $ (1,170) | $ (10,176) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
Amortization and depreciation | $ 130 | $ 421 | 318 | 971 |
Accretion of asset retirement obligation | 97 | 97 | ||
Asset write off | 34 | |||
Gain on reduction of asset retirement obligation | (56) | |||
Gain on sale of assets | (596) | (45) | ||
Amortization of deferred loan costs | 57 | |||
Warrant liability fair market adjustment | $ (425) | 1,096 | (363) | 2,276 |
Derivative liability fair market adjustment | 130 | 778 | ||
Accretion of loan discount | 372 | |||
Loss on debt extinguishment | $ (13) | 1,653 | ||
Deferred income taxes | (26) | |||
Stock compensation | 307 | 571 | ||
Changes in operating assets and liabilities: | ||||
Decrease (increase) in trade accounts receivable | 525 | (112) | ||
(Increase) decrease in prepaid expenses and other assets | (47) | 3 | ||
(Increase) decrease in inventories | (36) | 40 | ||
Increase (decrease) in value added tax recoverable, net | (187) | 347 | ||
Increase in accrued interest payable net of amounts capitalized | 85 | |||
Decrease in deferred revenue | (500) | |||
Decrease in reclamation liability | (3) | (8) | ||
Decrease in accounts payable and accrued liabilities | (47) | (183) | ||
Decrease in deferred leasehold payments | (11) | (8) | ||
Net cash used in operating activities | $ (1,269) | $ (3,774) |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Contingencies | ||
Loss contingency | $ 0 | $ 0 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)segment | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) | |
Segment Information | |||||
Number of reportable segments | segment | 2 | ||||
Revenue | $ 1,692 | $ 1,576 | $ 3,336 | $ 3,039 | |
Costs Applicable to Sales | 548 | 455 | 1,085 | 929 | |
Depreciation, depletion and amortization | 130 | 421 | 318 | 971 | |
Exploration, El Quevar, Velardena and Administrative Expense | 1,891 | 3,223 | 3,949 | 5,967 | |
Pre-tax (gain) loss | 35 | 3,915 | 1,170 | 10,202 | |
Total Assets | 13,255 | 15,443 | $ 13,255 | 15,443 | $ 14,008 |
Capital Expenditures | 20 | 20 | |||
Velardena properties | |||||
Segment Information | |||||
Number of reportable segments | segment | 1 | ||||
Revenue | 1,692 | 1,576 | $ 3,336 | 3,039 | |
Costs Applicable to Sales | 548 | 455 | 1,085 | 929 | |
Depreciation, depletion and amortization | 35 | 313 | 126 | 733 | |
Exploration, El Quevar, Velardena and Administrative Expense | 381 | 779 | 738 | 1,589 | |
Pre-tax (gain) loss | (877) | 33 | (1,651) | 244 | |
Total Assets | 7,326 | 7,111 | 7,326 | 7,111 | |
Capital Expenditures | 19 | 19 | |||
Corporate, Exploration & Other | |||||
Segment Information | |||||
Depreciation, depletion and amortization | 95 | 108 | 192 | 238 | |
Exploration, El Quevar, Velardena and Administrative Expense | 1,510 | 2,444 | 3,211 | 4,378 | |
Pre-tax (gain) loss | 912 | 3,882 | 2,821 | 9,958 | |
Total Assets | $ 5,929 | 8,332 | $ 5,929 | 8,332 | |
Capital Expenditures | $ 1 | $ 1 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | May 02, 2017 | Mar. 31, 2017 | Aug. 31, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 |
Related Party Transaction | ||||||
Proceeds from sale of assets | $ 733,000 | $ 50,000 | ||||
Common stock, shares issued | 90,031,347 | 89,020,041 | ||||
Common stock, shares outstanding | 90,031,347 | 89,020,041 | ||||
Related party receivable | $ 643,000 | |||||
Sentient | ||||||
Related Party Transaction | ||||||
Ownership (as a percent) | 46.00% | |||||
Minera Inde | Administrative Services | ||||||
Related Party Transaction | ||||||
Monthly charges received | $ 15,000 | |||||
Received amount | $ 90,000 | |||||
Sale, not discontinued operations | Sale of Equipment | Minera Inde | ||||||
Related Party Transaction | ||||||
Net book value of disposals | $ 185,000 | |||||
Proceeds from sale of assets | $ 750,000 | $ 100,000 | ||||
Sale of mining equipments | $ 687,000 | |||||
Sales price received (as a percent) | 10.00% | |||||
Interest rate on receivable (as a percent) | 10.00% | 10.00% | ||||
Sale, not discontinued operations | Sale of Equipment | Minera Inde | Other operating income, net | ||||||
Related Party Transaction | ||||||
Gain on sale of the additional equipment | $ 105,000 |
Subsequent Event (Details)
Subsequent Event (Details) - Oxide Plant $ / shares in Units, shares in Millions, $ in Millions | Aug. 02, 2017USD ($)item$ / sharesshares | Jun. 30, 2017USD ($) |
Subsequent Events | ||
Expected lease proceeds | $ 4.7 | |
Subsequent Event | ||
Subsequent Events | ||
Renewal term | 2 years | |
Expected lease proceeds | $ 1 | |
Gross proceeds from common stock sale | $ 1 | |
Common stock issued (in shares) | shares | 1.8 | |
Sale price (in dollars per shares) | $ / shares | $ 0.55 | |
Volume weighted average stock price period | 30 days | |
Termination notice period | 120 days | |
Number of rights of first refusal | item | 1 |