Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | May 05, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2020 | |
Entity Registrant Name | GOLDEN MINERALS COMPANY | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 128,176,938 | |
Entity Central Index Key | 0001011509 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 2,212 | $ 4,593 |
Lease receivables | 311 | 448 |
Inventories, net | 178 | 231 |
Derivative at fair value | 39 | 254 |
Prepaid expenses and other assets | 754 | 669 |
Total current assets | 3,494 | 6,195 |
Property, plant and equipment, net | 5,835 | 6,031 |
Other long term assets | 906 | 1,131 |
Total assets | 10,235 | 13,357 |
Current liabilities | ||
Accounts payable and other accrued liabilities | 1,559 | 2,127 |
Deferred revenue, current | 354 | 472 |
Other current liabilities | 1,150 | 1,824 |
Debt - related party | 1,000 | |
Total current liabilities | 4,063 | 4,423 |
Asset retirement and reclamation liabilities | 2,979 | 2,839 |
Other long term liabilities | 437 | 494 |
Total liabilities | 7,479 | 7,756 |
Commitments and contingencies | ||
Equity | ||
Common stock, $.01 par value, 200,000,000 shares authorized; 108,457,731 and 106,734,279 shares issued and outstanding respectively | 1,084 | 1,067 |
Additional paid in capital | 521,788 | 521,314 |
Accumulated deficit | (520,116) | (516,780) |
Shareholders' equity | 2,756 | 5,601 |
Total liabilities and equity | $ 10,235 | $ 13,357 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
CONSOLIDATED BALANCE SHEETS | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 108,457,731 | 106,734,279 |
Common stock, shares outstanding | 108,457,731 | 106,734,279 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue: | ||
Oxide plant lease | $ 1,196 | $ 1,932 |
Total revenue | 1,196 | 1,932 |
Costs and expenses: | ||
Oxide plant lease costs | (564) | (597) |
Exploration expense | (1,631) | (855) |
El Quevar project expense | (248) | (315) |
Velardeña care and maintenance costs | (463) | (517) |
Administrative expense | (1,163) | (1,074) |
Stock based compensation | (52) | (564) |
Reclamation expense | (59) | (59) |
Other operating income, net | 4 | 108 |
Depreciation and amortization | (279) | (274) |
Total costs and expenses | (4,455) | (4,147) |
Income (loss) from operations | (3,259) | (2,215) |
Other income and (expense): | ||
Interest and other income (expense), net | (27) | (98) |
Loss on foreign currency | (50) | (38) |
Total other income (loss) | (77) | (136) |
Income (loss) from operations before income taxes | (3,336) | (2,351) |
Net income (loss) | $ (3,336) | $ (2,351) |
Net income (loss) per common share - basic | ||
Loss (in dollars per share) | $ (0.03) | $ (0.02) |
Weighted average Common Stock outstanding - basic (in shares) | 107,247,298 | 95,755,304 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities: | ||
Net cash used in operating activities | $ (3,819) | $ (1,407) |
Cash flows from investing activities: | ||
Proceeds from sale of assets | 39 | |
Acquisitions of property, plant and equipment | (1) | (25) |
Net cash from investing activities | (1) | 14 |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock, net of issuance costs | 439 | 337 |
Proceeds from related party loan | 1,000 | |
Net cash from financing activities | 1,439 | 337 |
Net increase in cash and cash equivalents | (2,381) | (1,056) |
Cash and cash equivalents, beginning of period | 4,593 | 3,293 |
Cash and cash equivalents, end of period | $ 2,212 | $ 2,237 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Previously ReportedCommon Stock | Previously ReportedAdditional Paid-in Capital | Previously ReportedAccumulated Deficit | Previously Reported | Cumulative Effect AdjustmentAccumulated Deficit | Cumulative Effect Adjustment | Common Stock | Additional Paid-in Capital | Accumulated Deficit | LPC Program [Member] | Total |
Balance at Dec. 31, 2018 | $ 955 | $ 517,806 | $ (511,124) | $ 7,637 | |||||||
Balance (in shares) at Dec. 31, 2018 | 95,620,796 | ||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Stock compensation accrued and shares issued for vested stock awards | $ 337 | $ 337 | |||||||||
Modification of previously awarded KELTIP Units | 583 | 583 | |||||||||
Shares issued under the at-the-market offering agreement, net | $ 1 | 11 | 12 | ||||||||
Shares issued under the at-the-market offering agreement, net (in shares) | 33,995 | ||||||||||
Shares issued under the Lincoln Park commitment purchase agreement, net | $ (12) | (313) | (325) | ||||||||
Shares issued under the Lincoln Park commitment purchase agreement, net (in shares) | 1,213,642 | ||||||||||
Net loss | $ (2,351) | (2,351) | |||||||||
Balance at Mar. 31, 2019 | $ 968 | $ 519,050 | $ (513,475) | $ 6,543 | $ (267) | $ (267) | $ 968 | 519,050 | (513,742) | 6,276 | |
Balance (in shares) at Mar. 31, 2019 | 96,868,433 | 96,868,433 | |||||||||
Balance at Dec. 31, 2019 | $ 1,067 | 521,314 | (516,780) | 5,601 | |||||||
Balance (in shares) at Dec. 31, 2019 | 106,734,279 | ||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Stock compensation accrued and shares issued for vested stock awards | 52 | 52 | |||||||||
Shares issued under the at-the-market offering agreement, net | $ 8 | 215 | 223 | ||||||||
Shares issued under the at-the-market offering agreement, net (in shares) | 823,452 | ||||||||||
Shares issued under the Lincoln Park commitment purchase agreement, net | $ 9 | 207 | 216 | ||||||||
Shares issued under the Lincoln Park commitment purchase agreement, net (in shares) | 900,000 | ||||||||||
Registered direct purchase agreement, net (in shares) | 900,000 | ||||||||||
Net loss | (3,336) | (3,336) | |||||||||
Balance at Mar. 31, 2020 | $ 1,084 | $ 521,788 | $ (520,116) | $ 2,756 | |||||||
Balance (in shares) at Mar. 31, 2020 | 108,457,731 |
Basis of Preparation of Financi
Basis of Preparation of Financial Statements and Nature of Operations | 3 Months Ended |
Mar. 31, 2020 | |
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, 2019 and filed with the SEC on February 27, 2020. 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 the state of Durango, Mexico (the “Velardeña Properties”), a 100% interest in the El Quevar advanced exploration silver property in the province of Salta, Argentina (subject to the terms of the recently announced earn-in agreement (the “Earn-in Agreement”) pursuant to which Barrick Gold Corporation (“Barrick”) has the option to earn a 70% interest in the El Quevar project) , and a diversified portfolio of precious metals and other mineral exploration properties located primarily in or near historical precious metals producing regions of Mexico, Nevada and Argentina. The Velardeña Properties and the El Quevar advanced exploration property are the Company’s only material properties. 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 processing plants at the Velardeña Properties. The Company is also focused on advancing our El Quevar exploration property in Argentina through the Earn-in Agreement with Barrick and on advancing selected properties in our portfolio of approximately 12 properties, located in Mexico, Nevada and Argentina. The Company is also reviewing strategic opportunities, focusing primarily on development or operating properties in North America, including Mexico. 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 maintains a core group of employees at the Velardeña Properties, most of whom have been assigned to operate and provide administrative support for the oxide plant, which is leased to a subsidiary of Hecla Mining Company (“Hecla”) (see Note 20). The employees at the Velardeña Properties also include an exploration group and an operations and administrative group 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 Properties assets. The Company is considered an exploration stage company under SEC criteria since it has not yet demonstrated the existence of proven or probable mineral reserves, as defined by SEC Industry Guide 7, at any of its properties. Until such time, if ever, that the Company demonstrates the existence of proven or probable reserves pursuant to SEC Industry Guide 7, we expect to remain as an exploration stage company. |
Liquidity
Liquidity | 3 Months Ended |
Mar. 31, 2020 | |
Liquidity | |
Liquidity | 2. Liquidity At March 31, 2020, the Company’s aggregate cash and cash equivalents totaled $2.2 million, compared to the $4.6 million in similar assets held at December 31, 2019. The March 31, 2020 balance is due in part from the following expenditures and cash inflows for the three months ended March 31, 2020. Expenditures totaled $4.4 million from the following: · $1.6 million in exploration expenditures, including work at Rodeo, Sand Canyon and other properties; · $0.5 million in care and maintenance costs at the Velardeña Properties; · $0.2 million in exploration and evaluation activities, care and maintenance and property holding costs at the El Quevar project; · $1.2 million in general and administrative expenses; and · $0.3 million in Canadian income tax payments (Note 18), $0.4 million related to the remittance of value added taxes in Mexico collected in the fourth quarter 2019, and $0.2 million related to a working capital increase primarily from a reduction of accounts payable and other accrued liabilities. The foregoing expenditures were offset by cash inflows of $2.0 million from the following: · $1.0 million in an unsecured loan received from a related party (Note 14); · $0.6 million of net operating margin received pursuant to the oxide plant lease (defined as oxide plant lease revenue less oxide plant lease costs); and · $0.4 million, net of commitment fees and other offering related costs, from the LPC Program and the ATM Program (both as described in Note 19). In addition to the $2.2 million cash balance at March 31, 2020, in April 2020, the Company entered into the Earn-In Agreement with Barrick and received $0.9 million, net of transaction costs, related to a private placement transaction whereby Barrick received approximately 4.7 million shares of the Company’s common stock (as further described in Note 26). Also in April 2020, the Company closed on an equity offering and private placement (as further described in Note 26), which resulted in the receipt of approximately $2.8 million in proceeds, net of transaction costs. The Company also expects to receive an additional approximately $2.1 million in net operating margin from the lease of the oxide plant through the end of 2020, although the actual net operating margin received from the oxide plant may be negatively impacted if interruptions due to COVID-19 persist longer than currently anticipated. The Company’s budgeted expenditures, totaling approximately $9.0 million, during the next twelve months ending March 31, 2021 are as follows: · Approximately $2.2 million on evaluation activities, exploration and property holding costs related to the Company’s portfolio of exploration properties located in Mexico, Nevada and Argentina, including costs at Rodeo, El Quevar, Sand Canyon, Yoquivo and other properties; · Approximately $1.5 million at the Velardeña Properties for care and maintenance; · $1.0 million related to the repayment of a related party loan (Note 14); · Approximately $0.7 million for repayment of the Autlán deposit according to the terms of the Agreement (as described in Note 15); · Approximately $3.1 million on general and administrative costs; and · Approximately $0.5 million related to a decrease in accounts payable and other accrued liabilities. The Company’s currently budgeted expenditures of approximately $9.0 million are greater than the cash resources of approximately $8.0 million that are expected to be available during the period. Therefore, during the remainder of 2020 and through March 31, 2021, the Company will take appropriate actions, which may include sales of certain of the Company’s exploration assets, reductions to the Company’s currently budgeted level of spending, and/or raising additional equity capital through sales under the ATM Program, the LPC Program or otherwise. There are currently 8.1 million shares and 12.2 million shares remaining available for issuance under the ATM Program and LPC Program, respectively. The actual amount of cash expenditures that the Company incurs during the twelve-month period ending March 31, 2021 may vary significantly from the amounts specified above and will depend on a number of factors, including variations from anticipated care and maintenance costs at the Velardeña Properties and costs for continued exploration, project assessment, and development at the Company’s other exploration properties. Likewise, the actual amount of cash receipts that the Company receives during the period may vary significantly from the amounts specified above due to, among other things, a decrease in the quantity of material processed under the oxide plant lease or an unexpected early termination of the oxide plant lease by the lessee. If cash expenditures are greater than anticipated or if cash receipts are less than anticipated, the Company would need to take more aggressive actions to maintain sufficient cash balances over the next twelve months. The condensed consolidated financial statements have been prepared on a going concern basis under which an entity is considered to be able to realize its assets and satisfy its liabilities in the normal course of business. However, the Company’s continuing long-term operations are dependent upon its ability to secure sufficient funding and to generate future profitable operations. The underlying value and recoverability of the amounts shown as property, plant and equipment in the Company’s condensed consolidated financial statements are dependent on its ability to generate positive cash flows from operations and to continue to fund exploration and development activities that would lead to profitable mining activities or to generate proceeds from the disposition of property, plant and equipment. There can be no assurance that the Company will be successful in generating future profitable operations or securing additional funding in the future on terms acceptable to the Company or at all. The Company believes the cash on hand, the continuing cash flow from the lease of the oxide plant, use of the ATM Program and the LPC Program, and the potential for additional asset dispositions make it probable that the Company will have sufficient cash to meet its financial obligations and continue its business strategy beyond one year from the filing of its condensed consolidated financial statements for the period ended March 31, 2020. |
Correction of Immaterial Error
Correction of Immaterial Error - Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Correction of Immaterial Error – Income Taxes | |
Correction of Immaterial Error – Income Taxes | 3. In the third quarter 2019, the Company became aware that it had failed to timely file withholding tax returns and pay taxes that were due at the end of 2017 and 2018 relating to return of capital distributions made to the Company by one of the Company’s wholly-owned subsidiaries (see Note 18). The effect of correcting this error was to reduce beginning retained earnings by $267,000 with $154,000 and $113,000 accruing to 2018 and 2019, respectively. The $267,000 adjustment to retained earnings is reflected in the accompanying Condensed Consolidated Statements of Changes in Equity. The Company evaluated the materiality of the error described above from a qualitative and quantitative perspective. Based on such evaluation, the Company concluded that the correction would not be material to any individual prior period, nor did it have an effect on the trend of financial results, taking into account the requirements of the SEC Staff Accounting Bulletin No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in 2019 Financial Statements (“SAB 108”). |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2020 | |
New Accounting Pronouncements | |
New Accounting Pronouncements | 4. New Accounting Pronouncements During the first quarter 2020 the Company adopted ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). ASU 2016-13 modifies the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in the more timely recognition of losses. As the Company’s principle credit risk is related to its Lease Receivables the adoption of this update did not result in a material impact on the Company’s consolidated financial position or results of operations. During the first quarter 2019 the Company adopted ASU 2016-02, “Leases” (“ASU 2016-02”) and ASU No. 2018-11 “Leases (Topic 842)” (“ASU 2018-11”), which require lessees to recognize a right-of-use asset and a lease liability for all leases with terms greater than twelve months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. For a lessor, the accounting applied is largely unchanged from previous guidance. The Company currently leases administrative offices in the U.S. and in several foreign locations under lease agreements that typically exceed one year. The Company has elected the modified retrospective method of adopting ASU 2016-02 (see Note 5). |
Change in Accounting Principle
Change in Accounting Principle | 3 Months Ended |
Mar. 31, 2020 | |
Change in Accounting Principle | |
Change in Accounting Principle | 5. Change in Accounting Principle Leases Effective January 1, 2019 the Company adopted ASU 2016-02 and ASU 2018-11, which requires lessees to recognize a right-of-use asset and a lease liability for all leases with terms greater than twelve months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. For a lessor, the accounting applied is largely unchanged from previous guidance. The Company currently leases administrative offices in the U.S. and in several foreign locations under lease agreements that typically exceed one year. The Company has elected the modified retrospective method of adopting ASU 2016-02 per Topic 842. The Company has elected to apply several practical expedients available under the application of ASU 2016-02 and ASU 2018-11, which allowed the Company to forego reassessing the classification of existing or expiring leases, evaluating whether any existing or expiring contracts contain leases or reassessing previously recorded indirect costs. The Company did not elect the practical expedient permitting the combination of lease and non lease components of the contract. The adoption of ASU 2016-02 and ASU 2018-11 at January 1, 2019 resulted in only a negligible difference to amounts already recorded by the Company in its Consolidated Balance Sheets as of December 31, 2018, and as a result the Company did not record an adjustment to the beginning balance of retained earnings at January 1, 2019, as required under the modified retrospective method. The Company took possession of new office space and began a new long-term lease for its principal headquarters office with an effective commencement date of June 1, 2019. The new office lease will expire five years and eight full calendar months following the commencement date. There are no options to extend the lease beyond the stated term. The Company recorded a right of use asset of approximately $465,000 and a lease liability of approximately $450,000 in the second quarter of 2019 based on the net present value of the future lease payments discounted at 9.5%, which represents the Company’s incremental borrowing rate for purposes of applying the guidance of Topic 842. As required, the Company will recognize a single lease cost on a straight-line basis. The Company also has long-term office leases in Mexico and Argentina that expired in 2019 and recorded a combined lease liability of approximately $45,000 and combined right of use asset of approximately $45,000 relating to both of those leases at January 1, 2019. In November 2019, the Company renewed its Mexican office lease for four years and recorded a right of use asset and lease liability of approximately $174,000. In December 2019, the Company also renewed its Argentina office lease for two years and recorded a right of use asset and lease liability of approximately $18,000. The Company has included its right of use assets for the office leases described above in “ Other long-term assets ” (Note 12) and its office lease liabilities in “ Other liabilities ”, short term and long term (Note 15), in the Company’s Consolidated Balance Sheets for the periods ended March 31, 2020 and December 31, 2019. . |
Cash and Cash Equivalents and S
Cash and Cash Equivalents and Short-Term Investments | 3 Months Ended |
Mar. 31, 2020 | |
Cash and Cash Equivalents and Short-Term Investments | |
Cash and Cash Equivalents and Short-Term Investments | 6. 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. 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 | 3 Months Ended |
Mar. 31, 2020 | |
Prepaid Expenses and Other Assets | |
Prepaid Expenses and Other Assets | 7. Prepaid Expenses and Other Assets Prepaid expenses and other current assets at March 31, 2020 and December 31, 2019 consist of the following: March 31, December 31, 2020 2019 (in thousands) Prepaid insurance $ 417 $ 494 Deferred offering costs 129 — Recoupable deposits and other 208 175 $ 754 $ 669 The deferred offering costs are associated with the ATM Agreement (see Note 19). |
Inventories, net
Inventories, net | 3 Months Ended |
Mar. 31, 2020 | |
Inventories, net | |
Inventories, net | 9. Inventories, net Inventories at the Velardeña Properties at March 31, 2020 and December 31, 2019 consist of the following: March 31, December 31, 2020 2019 (in thousands) Material and supplies $ 178 $ 231 $ 178 $ 231 The material and supplies inventory at March 31, 2020 and December 31, 2019 is reduced by a $0.2 million obsolescence allowance. |
Value added tax receivable, net
Value added tax receivable, net | 3 Months Ended |
Mar. 31, 2020 | |
Value added tax receivable, net | |
Value added tax receivable, net | 10. 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 March 31, 2020, the Company has also recorded approximately $35,000 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. 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 | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment, Net | |
Property, Plant and Equipment, Net | 11. Property, Plant and Equipment, Net The components of property, plant and equipment are as follows: March 31, December 31, 2020 2019 (in thousands) Mineral properties $ 9,353 $ 9,353 Exploration properties 2,518 2,518 Royalty properties 200 200 Buildings 3,755 3,755 Mining equipment and machinery 16,049 16,049 Other furniture and equipment 885 884 Asset retirement cost 948 866 33,708 33,625 Less: Accumulated depreciation and amortization (27,873) (27,594) $ 5,835 $ 6,031 Equipment Related to the Oxide Plant Lease Certain assets of the Company are related to the lease of the Velardeña oxide plant to Hecla (see Note 1). The net book value of the equipment involved in the lease was approximately $0.5 million for both the three months ended March 31, 2020 and the year ended December 31, 2019. |
Other Long-Term Assets
Other Long-Term Assets | 3 Months Ended |
Mar. 31, 2020 | |
Other Long-Term Assets | |
Other Long-Term Assets | 12. Other Long-Term Assets Other long-term assets at March 31, 2020 and December 31, 2019 consist of the following: March 31, December 31, 2020 2019 (in thousands) Deferred offering costs $ 350 $ 511 Right of use assets 556 620 $ 906 $ 1,131 The deferred offering costs are associated with the LPC Program (see Note 19). The right of use assets are related to certain office leases (see Note 5). |
Accounts Payable and Other Accr
Accounts Payable and Other Accrued Liabilities | 3 Months Ended |
Mar. 31, 2020 | |
Accounts Payable and Other Accrued Liabilities | |
Accounts Payable and Other Accrued Liabilities | 13. Accounts Payable and Other Accrued Liabilities The Company’s accounts payable and other accrued liabilities consist of the following: March 31, December 31, 2020 2019 (in thousands) Accounts payable and accruals $ 981 $ 710 Accrued employee compensation and benefits 578 724 Value added tax payable — 401 Income taxes payable — 292 $ 1,559 $ 2,127 March 31, 2020 Accounts payable and accruals at March 31, 2020 are primarily related to amounts due to contractors and suppliers in the amounts of $0.4 million related to the Company’s Velardeña Properties and $0.6 million related to exploration and corporate administrative activities. Accrued employee compensation and benefits at March 31, 2020 consist of $0.2 million of accrued vacation payable and $0.4 million related to withholding taxes and benefits payable. Included in the $0.6 million of accrued employee compensation and benefits is $0.4 million related to activities at the Velardeña Properties. December 31, 2019 Accounts payable and accruals at December 31, 2019 are primarily related to amounts due to contractors and suppliers in the amounts of $0.3 million related to the Company’s Velardeña Properties and $0.3 million related to corporate administrative and exploration activities. Accrued employee compensation and benefits at December 31, 2019 consist of $0.2 million of accrued vacation payable and $0.5 million related to withholding taxes and benefits payable. Included in the $0.7 million of accrued employee compensation and benefits is $0.5 million related to activities at the Velardeña Properties. The VAT payable is primarily related to VAT collected on the sale of the Mogotes and Pistachon properties in Mexico in December 2019, with such amount being remitted to the Mexican government in January 2020. The Company has recorded VAT paid in Mexico and related to the Velardeña Properties as a recoverable asset. At December 31, 2019, the Company recorded approximately $73,000 of VAT receivable as a reduction to VAT payable presented in the table above. The VAT was paid during the first quarter 2020. The income taxes payable are related to certain Canadian taxes due on capital distributions the Company received from its Canadian subsidiary (see Note 18). The taxes were paid in February 2020 . |
Debt - Related Party
Debt - Related Party | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt - Related Party | 14 . Debt – Related Party On March 30, 2020, in response to potential economic and market uncertainties caused by the COVID-19 pandemic, the Company entered into a Short-Term Loan Agreement (the “Loan Agreement”) with Sentient Global Resources Fund IV , L.P., a Cayman Islands exempted limited partnership (“Sentient”), pursuant to which Sentient granted to the Company an unsecured loan in an amount equal to $1,000,000 (the “Sentient Loan”). Sentient is a private equity fund, and together with certain other Sentient equity funds, Sentient is the Company’s largest stockholder, holding in the aggregate approximately 32% of the Company’s outstanding common stock. The Sentient Loan bears interest at a rate of 10% per annum and the loan is due in full, together with accrued interest and any other amount outstanding under the Loan Agreement, on December 31, 2020. The Loan Agreement contains customary representations, warranties, and other provisions. The loan Agreement does not contain any prepayment penalties. |
Other Liabilities
Other Liabilities | 3 Months Ended |
Mar. 31, 2020 | |
Other Liabilities | |
Other Liabilities | 15. Other Liabilities Other Current Liabilities The following table sets forth the Company’s other current liabilities at March 31, 2020 and December 31, 2019: March 31, December 31, 2020 2019 (in thousands) Autlán refundable deposit $ 740 $ 1,251 Premium financing 298 455 Office lease liability 112 118 $ 1,150 $ 1,824 The Autlán refundable deposit is the remaining principal plus interest liability related to the deposit received for the proposed sale of our Velardeña Properties and other mineral concessions to Autlán in 2019. O n September 11, 2019, the Company announced that A utlán exercised its right to terminate the agreement for the purchase of the properties. As a result of termination of the agreement, the Company is required to repay the original $1.5 million deposit amount by making monthly payments of $257,000, commencing on December 9, 2019, until the deposit amount is repaid with interest at approximately 11% per annum. Through March 31, 2020 the Company paid Autlán approximately $0.8 million against the original $1.5 million deposit, including interest of approximately $32,000, leaving a balance due at March 31, 2020 of approximately $0.7 million, including accrued interest. The Company recorded approximately $23,000 of interest expense for the three months ended March 31, 2020 related to the Autlán refundable deposit. On April 7, 2020, the Company and Autlán agreed to reduce the monthly payments to $81,000 and the interest rate applicable to the unpaid repayment amount will be increased from 11% per annum to 12% per annum, effective on April 9, 2020. The remaining balance is now due in full by December 2020. The premium financing consists of the remaining balance, plus accrued interest, related to premiums payable for the Company’s directors and officers insurance and general liability insurance. In June 2019, the Company financed $151,000 of its premium for general liability insurance. The premium is payable in twelve equal payments at an interest rate of 5.74% per annum. At March 31, 2020, the remaining balance, plus accrued interest, was approximately $13,000. In December 2019 the Company financed $482,000 of its premium for directors and officers insurance. The premium is payable in twelve equal payments at an interest rate of 5.74% per annum. At March 31, 2020 the remaining balance, plus accrued interest, was approximately $285,000. The office lease liability is related to lease liabilities for office space at the Company’s principal headquarters in Golden, Colorado and in Mexico and Argentina (see Note 5). Other Long-Term Liabilities Other long-term liabilities of $0.4 million and $0.5 million for the periods ended March 31, 2020 and December 31, 2019, respectively, are primarily related to a lease liability for office space at the Company’s principal headquarters in Golden (see Note 5). |
Asset Retirement and Reclamatio
Asset Retirement and Reclamation Liabilities | 3 Months Ended |
Mar. 31, 2020 | |
Asset Retirement and Reclamation Liabilities | |
Asset Retirement and Reclamation Liabilities | 16. 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 at that time. 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 three months of 2020, the Company recognized approximately $59,000 of accretion expense. The following table summarizes activity in the Velardeña Properties ARO: Three Months Ended March 31, 2020 2019 (in thousands) Beginning balance $ 2,825 $ 2,660 Changes in estimates, and other 82 (60) Accretion expense 59 55 Ending balance $ 2,966 $ 2,655 The change in estimates of the ARO recorded during 2020 and 2019 are primarily the result of changes in assumptions related to inflation factors used in the determination of future cash flows. The ARO set forth on the accompanying Condensed Consolidated Balance Sheets at March 31, 2020 and December 31, 2019 includes a nominal amount of reclamation liability related to activities at the El Quevar project in Argentina. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Measurements | |
Fair Value Measurements | 17. 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 March 31, 2020 and December 31, 2019, by respective level of the fair value hierarchy: Level 1 Level 2 Level 3 Total (in thousands) At March 31, 2020 Assets: Cash and cash equivalents $ 2,212 $ — $ — $ 2,212 Derivative at fair value — — 39 39 $ 2,212 $ — $ 39 $ 2,251 At December 31, 2019 Assets: Cash and cash equivalents $ 4,593 $ — $ — $ 4,593 Derivative at fair value — — 254 254 $ 4,593 $ — $ 254 $ 4,847 The Company’s cash equivalents, comprised principally of U.S. treasury securities, are classified within Level 1 of the fair value hierarchy. The “Derivative at Fair Value” asset on the Consolidated Balance Sheets is related to the amendment to the Hecla plant lease agreement (see Note 20). The Company has determined that the portion of the variable lease payment that is based on the average price of silver and the average grade of material processed during a given month represents an embedded derivative (see Note 8). The Company assesses the fair value of the derivative at the end of each reporting period, with changes in the value recorded as an increase or decrease to “ Oxide Plant Revenue” on the Company’s Consolidated Statements of Operations. The derivative asset was recorded at fair value as of December 2, 2019, the effective date of the lease amendment, and at December 31, 2019, based primarily on a valuation performed by a third-party expert using a Monte Carlo simulation and an option pricing model to calculate the potential discounted cash flow from the derivative based on the probability that the price of silver will have an average price for any given month during 2020 that equals or exceeds $20.00 per ounce or a grade processed equal to or exceeding 1,000 grams per tonne combined with a risk adjusted estimate of material to be processed. The valuation falls within Level 3 of the fair value hierarchy. 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 valuation model primarily takes into consideration the potential discounted cash flow from the derivative based on the probability that the price of silver will have an average price for any given month during 2020 that equals or exceeds $20.00 per ounce or a grade processed equal to or exceeding 1,000 grams per tonne combined with a risk adjusted estimate of material to be processed. At March 31, 2020 and December 31, 2019, the Company did not have any financial assets or liabilities classified within Level 2 of the fair value hierarchy. Non-recurring Fair Value Measurements There were no non-recurring fair value measurements at March 31, 2020 or December 31, 2019. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Taxes | |
Income Taxes | 18. 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 March 31, 2020 and March 31, 2019 the Company did not recognized any income tax 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 March 31, 2020 and as of December 31, 2019, the Company had no net deferred tax assets or net deferred tax liabilities reported on its balance sheet. In the third quarter 2019, the Company became aware that it had failed to timely file withholding tax returns and pay taxes that were due relating to return of capital distributions made to the Company by ECU Silver Mining Inc. (the Company’s wholly-owned Canadian subsidiary) at the end of 2017 and 2018. The capital distributions constituted dividends under Canadian tax law, subject to a 5% withholding tax. The Canadian withholding taxes, which constituted taxes on income for the months of December 2017 and December 2018, totaled approximately $284,000, including an estimate of interest due of approximately $20,000 on the late filing. The Company has treated the income tax expense related to this liability as the correction of an accounting error and has adjusted the beginning balance of retained earnings (Note 3) . In February 2020 the Company applied to enter into the Canadian Revenue Agency’s Voluntary Disclosure Program, whereby the Company paid the taxes and the estimated interest due and requested abatement of any penalties or additional interest that may apply. If the Canada Revenue Agency denies the Company’s request for abatement, additional interest and penalties could be assessed. 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 March 31, 2020 or December 31, 2019. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2020 | |
Equity | |
Equity | 19. Equity Registered direct offering On July 17, 2019, the Company entered into an agreement with certain institutional investors providing for the issuance and sale of 8,653,846 shares of the Company’s common stock at a price of $0.26 per share, and in a concurrent private placement transaction, the issuance of 8,653,846 Series A warrants to purchase up to 8,653,846 shares of the Company’s common stock at an exercise price of $0.35 per share, for aggregate gross proceeds of $2.25 million (the “Offering”). Each Series A warrant became exercisable on January 17, 2020 and will expire on January 17, 2025, five years from the initial exercise date. Each of the investors in the Offering held warrants that were issued by the Company in May 2016 and were exercisable until November 2021 at an exercise price of $0.75 per share. In connection with the Offering, the Company also agreed to exchange, on a one-for-one basis, the May 2016 warrants for Series B warrants to purchase 4,500,000 shares of common stock at an exercise price of $0.35 per share . Each Series B warrant became exercisable on January 17, 2020 and will expire on May 20, 2022 but are otherwise subject to the same terms and conditions as the Series A warrants. The net proceeds of the Offering were recorded in equity and appear as a separate line item in the Condensed Consolidated Statements of Changes in Equity. Total costs for the Offering were approximately $0.3 million, including the placement agent fee of six percent of aggregate gross proceeds, listing fees and legal and other costs. Such costs were recorded as a reduction to “ Additional paid in capital” on the Condensed Consolidated Balance Sheets. Using the Black Scholes model, the fair value of the Series A warrants issued was approximately $2.1 million and the incremental fair value of the Series B warrants, when compared to the warrants that they replaced, was approximately $0.3 million. The Black Scholes inputs for the Series A warrants included the closing stock price on July 16, 2019 (the day preceding the date the Company entered into the agreement to issue the shares) of $0.33, the exercise price and exercise period of the warrants, the Company’s applicable volatility rate for the period of the Series A warrants of 95%, and the applicable risk-free rate of 1.9%. The Black Scholes inputs for the Series B warrants included the closing stock price on July 16, 2019 of $0.33, the exercise price and exercise period of the warrants, the Company’s applicable volatility rate for the period of the Series B warrants of 88%, and the applicable risk-free rate of 1.9%. Commitment purchase agreement On May 9, 2018, the Company entered into a commitment purchase agreement (the “Commitment Purchase Agreement”) with LPC, pursuant to which the Company, at its sole discretion, has the right to sell up to $10.0 million of the Company’s common stock to LPC, subject to certain limitations and conditions contained in the Commitment Purchase Agreement (the “LPC Program”). The Company closed on the Commitment Purchase Agreement in July 2018. Subject to the terms of the Commitment Purchase Agreement, the Company will control the timing and amount of any future sale of the Company’s common stock to LPC. LPC has no right to require any sales by the Company under the Commitment Purchase Agreement but is obligated to make purchases at the Company’s sole direction, as governed by such agreement. There are no upper limits to the price LPC may be obligated to pay to purchase common stock from the Company and the purchase price of the shares will be based on the prevailing market prices of the Company’s shares at the time of each sale to LPC. LPC has agreed not to cause or engage in any manner whatsoever, any direct or indirect short selling or hedging of the Company’s shares of common stock. The Company has the right to terminate the Commitment Purchase Agreement at any time, at its discretion, without any cost or penalty. During the three months ended March 31, 2020 the Company sold 900,000 shares of common stock to LPC under the Commitment Purchase Agreement at an average sales price per share of approximately $0.27, resulting in net proceeds of approximately $216,000. In addition, approximately $24,000 of Commitment Purchase Agreement costs were amortized, resulting in a remaining balance of $353,000 of deferred LPC Program costs, recorded in “ Other long-term assets ” on the Condensed Consolidated Balance Sheets as of March 31, 2020. During the three months ended March 31, 2019 the Company sold 1,213,642 shares of common stock to LPC under the Commitment Purchase Agreement at an average sales price per share of approximately $0.30, resulting in net proceeds of approximately $360,000. In addition, approximately $35,000 of Commitment Purchase Agreement costs were amortized. There are currently12.2 million shares remaining available for issuance under the LPC Program. At the Market Offering Agreement In December 2016, the Company entered into an at-the-market offering agreement (as amended from time to time, 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. On November 23, 2018 the Company entered into a second amendment of t he ATM Agreement extending the agreement until the earlier of December 20, 2020, or the date that the ATM Agreement is terminated in accordance with the terms therein. 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. During the first three months of 2020, the Company sold an aggregate of 823,452 shares of common stock under the ATM Agreement at an average price of $0.28 per share of common stock for net proceeds of approximately $223,000. In addition, approximately $8,000 of deferred ATM Program costs were amortized, resulting in a remaining balance of $129,000 of deferred ATM Program costs, recorded in “Prepaid expenses and other assets” on the Condensed Consolidated Balance Sheets as of March 31, 2020. During the first three months of 2019, the Company sold an aggregate of 33,995 shares of common stock under the ATM Agreement at an average price of $0.34 per share of common stock for total proceeds of approximately $11,000. There are currently 8.1 million shares remaining available for issuance under the ATM Program. 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 March 31, 2020 and the changes during the three months then ended: Weighted Average Grant Date Fair Number of Value Per Restricted Stock Grants Shares Share Outstanding at December 31, 2019 318,003 $ 0.45 Granted during the period — — Restrictions lifted during the period — — Forfeited during the period — — Outstanding March 31, 2020 318,003 $ 0.45 For the three months ended March 31, 2020 the Company recognized approximately $17,000 of compensation expense related to the restricted stock grants. The Company expects to recognize additional compensation expense related to these awards of approximately $45,000 over the next 15 months. The following table summarizes the status of the Company’s stock option grants issued under the Equity Plan at March 31, 2020 and the changes during the three months then ended: Weighted Average Exercise Number of Price Per Equity Plan Options Shares Share Outstanding at December 31, 2019 30,310 $ 8.06 Granted during the period — — Forfeited or expired during period — $ — Exercised during period — — Outstanding March 31, 2020 30,310 $ 8.06 Exercisable at end of period 30,310 $ 8.06 Granted and vested 30,310 $ 8.06 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 March 31, 2020 and the changes during the three months then ended: Weighted Average Grant Date Fair Number of Value Per Restricted Stock Units Shares Share Outstanding at December 31, 2019 2,830,038 $ 0.78 Granted during the period — — Restrictions lifted during the period — — Forfeited during the period — — Outstanding March 31, 2020 2,830,038 $ 0.78 For the three months ended March 31, 2020 the Company recognized approximately $35,000 of compensation expense related to the RSU grants. The Company expects to recognize additional compensation expense related to the RSU grants of approximately $21,000 over the next three 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 (such method of settlement at the sole discretion of the Board of Directors) issued pursuant to the Company’s 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. On February 26, 2019, the Company awarded a total of 705,000 KELTIP Units to two officers of the Company. Due to the Company’s desire to preserve its limited current cash reserves for funding expenditures related to its portfolio of exploration projects, the Company determined it no longer had the current intent to settle any of its outstanding KELTIP Units in cash. The Company now intends to settle all of the KELTIP Units, including those previously issued, in common stock of the Company, an option that the Board of Directors holds in its sole discretion so long as sufficient shares remain available under the Equity Plan. As a result, the Company recorded approximately $254,000 of compensation expense, included in “ Stock based compensation ” in the Condensed Consolidated Statement of Operations for the KELTIP Units awarded on February 26, 2019 with a similar amount recorded as “Additional Paid-in Capital” in the Condensed Consolidated Statements of Changes in Equity. The Company has treated the previously awarded KELTIP Units as effectively modified at February 26, 2019. The Company marked-to-market the prior KELTIP Units as of that date and recorded approximately $227,000 of additional compensation expense, included in “ Stock based compensation ” in the Condensed Consolidated Statement of Operations and recorded approximately $583,000 as “Additional Paid-in Capital” in the Condensed Consolidated Statements of Changes in Equity, an amount representing the sum of the compensation expense recorded on February 26, 2019 and the liability for the KELTIP Units recorded at December 31, 2018. All KELTIP Units were recorded in equity at March 31, 2019. The Company did not award any KELTIP Units during the three months ended March 31, 2020. At March 31, 2020 and December 31,2019, there were 2,325,000 KELTIP Units outstanding. Common stock warrants The following table summarizes the status of the Company’s common stock warrants at March 31, 2020 and the changes during the three months then ended: Weighted Number of Average Exercise Underlying Price Per Common Stock Warrants Shares Share Outstanding at December 31, 2019 14,653,846 $ 0.80 Granted during the period — — Dilution adjustment — — Expired during period — — Exercised during period — — Outstanding March 31, 2020 14,653,846 $ 0.80 The warrants relate to prior and current registered offerings and private placements of the Company’s stock. 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 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 were exercisable until November 6, 2021, five years from the initial exercise date. In connection with the July 2019 registered direct offering discussed above, the Company agreed to exchange, on a one-for-one basis, 4,500,000 of the May 2016 warrants for Series B warrants to purchase 4,500,000 shares of common stock at an exercise price of $0.35 per share . Each Series B warrant is exercisable six months from the date of issuance and has a term expiring in May 2022. As discussed above, on July 10, 2019, the Company issued 8,653,846 registered shares of common stock in a registered direct offering. In connection with the offering, each investor received an unregistered Series A warrant to purchase a share of common stock for each share of common stock purchased. Each Series A warrant is exercisable six months from the date of issuance and has a term expiring in January 2025. All outstanding warrants are recorded in equity at March 31, 2020 and December 31, 2019. |
Revenue, Deferred Revenue and R
Revenue, Deferred Revenue and Related Costs Oxide Plant Lease and Oxide Plant Lease Costs | 3 Months Ended |
Mar. 31, 2020 | |
Revenue, Deferred Revenue and Related Costs Oxide Plant Lease and Oxide Plant Lease Costs | |
Revenue, Deferred Revenue and Related Costs Oxide Plant Lease and Oxide Plant Lease Costs | 20 . Revenue, Deferred Revenue and Related Costs Oxide Plant Lease and Oxide Plant Lease Costs For the three months ended March 31, 2020 the Company recorded revenue of approximately $1.2 million and related costs of approximately $0.6 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 following the guidance of ASC 842. ASC 842 supports recording as gross revenue the reimbursement of expenses incurred directly by the Company in performing its obligations under the lease in situations where the entity has control over the specific goods or services transferred to a customer as a principal versus as an agent. 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. The Company recognizes lease fees during the period the fees are earned per the terms of the lease. 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, 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 had an option to extend the lease to December 31, 2020 by exercising the option no later than October 3, 2018. On October 1, 2018 Hecla exercised the Second Amendment option and extended the lease to December 31, 2020. 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 has the right to terminate the lease during the Extension Period for any reason with 120 days’ notice. The Company will 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 “ Revenue: Oxide plant lease ” in the Condensed Consolidated Statements of Operations. During the three months ended March 31, 2020 the Company recognized approximately $0.1 million of amortized income related to the upfront cash payment. As of March 31, 2020, the unamortized portion of the lease option totaled approximately $0.2 million, recorded as short term “ Deferred revenue ” on the Condensed Consolidated Balance Sheets. On December 2, 2019 the Company and Hecla entered into a Third Amendment to the Master Agreement and Lease Agreement dated August 2, 2017. Under the terms of the Third Amendment, the Company has agreed to reduce the per tonne fee payable by Hecla for the duration of the lease term, commencing on January 1, 2020 from $22.00 per tonne to $11.00 per tonne. However, the Company will receive $22.00 per tonne processed during any month in which one of the following conditions occur: (1) the Comex daily silver spot closing average price for such month is equal to or greater than $20.00 per ounce, or (2) the mill head grade average from the metallurgical balance for such month is equal to or greater than 1,000 grams per ton equivalent silver head grade. If either of the conditions are met in any month, Hecla will pay the $22.00 fee on all amounts processed in the oxide plant during such month. The reduced fee only applies to the tonnage-based payments under the Lease Agreement; the monthly lease payment of $125,000 per month is not affected by the Third Amendment. Under the terms of the Lease Agreement, Hecla had the right to terminate the Lease Agreement at any time upon 120 days written notice. The Third Amendment extended the advance notice required to 150 days. Moreover, the lease permits Hecla to terminate the lease upon ten days notice if Hecla is unable to use the plant due to a government ordered shutdown for a period of more than 90 continuous days. The Company has determined that the ability to receive the higher $22.00 per tonne fee, as described above, creates a derivative asset. The Company treated the derivative asset as an upfront lease payment that will be amortized over the remaining life of the lease and also recorded deferred revenue equal to the value of the derivative asset, as more fully described in Note 8. The amortization of the upfront lease payment and the increase in the derivative asset at December 31, 2019 were recorded as an increase of approximately $74,000 to “ Revenue: Oxide plant lease ” in the Consolidated Statements of Operations for the period ended December 31, 2019. For the three month period ended March 31, 2020 the amortization of the upfront lease payment and the decrease in the derivative asset (Note 8) were recorded as a net decrease of approximately $170,000 to “ Revenue: Oxide plant lease ” in the Consolidated Statements of Operations for the period ended December 31, 2019 Hecla has a one-time right of first refusal to continue to lease the plant following a termination notice through December 31, 2020 if the Company decides to use the oxide plant for its own purposes before December 31, 2020. For the three months ended March 31, 2019 the Company recorded revenue of approximately $1.9 million and related costs of approximately $0.6 million associated with the lease of the Velardeña Properties oxide plant. During the three months ended March 31, 2019 the Company also recognized approximately $0.1 million of amortized income related to the upfront cash payment from Hecla, as discussed above. |
Interest and Other Income
Interest and Other Income | 3 Months Ended |
Mar. 31, 2020 | |
Interest and Other Income | |
Interest and Other Income | 21. Interest and Other Expense, Net For the three months ended March 31, 2020 the Company recognized a nominal amount of Interest and Other Expense primarily related to amounts payable to Autlán (see Note 15). For the three months ended March 31, 2019 the Company recognized approximately $0.1 million of Interest and Other Expense primarily related to the mark-to-market of Golden Tag shares held by the Company at that time. All the Golden Tag shares were sold during the third quarter 2019. |
Cash flow information
Cash flow information | 3 Months Ended |
Mar. 31, 2020 | |
Supplemental Cash Flow Information | |
Cash flow information | 22. Supplemental Cash Flow Information The following table reconciles net loss for the period to cash used in operations: Three Months Ended March 31, 2020 2019 (in thousands) Cash flows from operating activities: Net loss $ (3,336) $ (2,351) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 279 274 Accretion of asset retirement obligation 59 55 Decrease in derivative at fair value 215 — Loss (gain) on trading securities — 106 Asset write off — 16 Gain on reduction of asset retirement obligation — (39) Stock compensation 52 564 Changes in operating assets and liabilities from continuing operations: Decrease (increase) in lease receivable 138 (8) (Increase) decrease in prepaid expenses and other assets 43 (62) (Increase) decrease in inventories 53 (2) Increase in value added tax recoverable, net — (5) Increase in other long term assets 96 — Decrease in reclamation liability (1) (63) (Decrease) increase in accounts payable and accrued liabilities (568) 191 Decrease in deferred revenue (118) (73) Decrease in other current liabilities (675) (10) Decrease in other long term liabilities (56) — Net cash used in operating activities $ (3,819) $ (1,407) The following table sets forth supplemental cash flow information and non-cash transactions: Three Months Ended March 31, 2020 2019 (in thousands) Supplemental disclosure: Interest paid $ 26 $ — Income taxes paid $ 284 $ — Supplemental disclosure of non-cash transactions: Deferred equity offering costs amortized $ 32 $ 34 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies | |
Commitments and Contingencies | 23. Commitments and Contingencies At March 31, 2020 and December 31, 2019, 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, 2019. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2020 | |
Segment Information | |
Segment Information | 24. 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 March 31, 2020 Revenue to Sales Amortization Expense loss Total Assets Expenditures Velardeña Properties $ 1,196 $ 564 $ 204 $ 657 $ 371 $ 4,663 $ 1 Corporate, Exploration and Other — — 75 2,848 2,965 5,572 — $ 1,196 $ 564 $ 279 $ 3,505 $ 3,336 $ 10,235 $ 1 Three Months Ended March 31, 2019 Velardeña Properties $ 1,932 $ 597 $ 202 $ 634 $ (316) $ 5,641 $ — Corporate, Exploration and Other — — 72 2,126 2,667 5,647 25 $ 1,932 $ 597 $ 274 $ 2,760 $ 2,351 $ 11,288 $ 25 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2020 | |
Related Party Transactions | |
Related Party Transactions | 25. Related Party Transactions The following sets forth information regarding transactions between the Company (and its subsidiaries) and its officers, directors and significant stockholders. Administrative Services: Beginning in August 2016, the Company began providing limited accounting and other administrative services to Minera Indé, an indirect subsidiary of Sentient. At March 31, 2020, Sentient, through the Sentient executive funds, holds approximately 38% of the Company’s 108.5 million shares of issued and outstanding common stock. The services are provided locally in Mexico by the administrative staff in the Company’s Mexico office. 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 exploration. The Company’s Board of Directors and Audit Committee approved the agreement. For the three months ended March 31, 2020 and 2019 the Company charged Minera Indé approximately $45,000 for services, offsetting costs that are recorded in “ Exploration expense ” in the Condensed Consolidated Statements of Operations. Debt – Related Party On March 30, 2020, the Company entered into a short-term loan agreement with Sentient whereby the Company received an unsecured loan in the amount of $1,000,000. The Sentient Loan bears interest at a rate of 10% per annum and the loan is due in full, together with accrued interest and any other amount outstanding under the loan agreement, on December 31, 2020. See Note 14 for a full description of the loan. |
Subsequent Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events | |
Subsequent Event | 26. Subsequent Events COVID-19 On March 11, 2020, the World Health Organization declared the outbreak of the respiratory disease caused by the new coronavirus as “pandemic”. As of the date of issuance of the condensed consolidated financial statements, the Company’s financial condition has not been significantly impacted, however, the Company continues to monitor the situation. No impairments were recorded as of the condensed consolidated balance sheet date, however, due to uncertainty surrounding the situation, management’s judgment regarding this could change in the future. In addition, while the Company’s results of operation, cash flows, and financial condition could be negatively impacted, the extent of the impact cannot be reasonably estimated at this time. Earn in Agreement On April 9, 2020, the Company and several of its directly and indirectly wholly-owned subsidiaries entered into an Earn-In Agreement (the “Earn-In Agreement”) with Barrick, pursuant to which Barrick has acquired an option (the “Option”) to earn a 70% interest in the Company’s El Quevar project located in the Salta Province of Argentina. In connection with the Earn-In Agreement, the Company and Barrick also entered into a subscription agreement dated as of April 9, 2020 pursuant to which Barrick agreed to purchase approximately 4.7 million shares of the Company’s common stock at a purchase price of $0.21 per share in a private placement transaction for gross proceeds of $1.0 million. See “ 2020 Highlights – El Quevar” below for more information regarding the Earn-In Agreement. Offering and private placement transaction On April 20, 2020, the Company entered into a securities purchase agreement with certain institutional investors providing for the issuance and sale of 15,000,000 shares of the Company’s common stock at a price of $0.20 per share, and in a concurrent private placement transaction, the issuance of an aggregate of 11,250,000 warrants, ultimately consisting of 7,500,000 series A warrants and 3,750,000 series B warrants (collectively, the “Warrants”), to purchase up to 11,250,000 shares of our common stock at an exercise price of $0.30 per share, for aggregate gross proceeds of $3.0 million (the “Offering”). Each Warrant is exercisable six months from the date of issuance and has a term expiring five years after such initial exercise date. Total costs for the Offering were approximately $250,000, including the placement agent fee of six percent of the aggregate gross proceeds, except, however, that a reduced fee was accepted with respect to one investor. The securities purchase agreement contains customary representations, warranties and covenants, in addition to granting the investors the right to collectively participate in up to 50% of any future offerings of securities by the Company on the same terms as other investors, other than certain “exempt issuances” and “permitted sales” as defined therein, until the first anniversary of the closing date of the Offering. Under the terms of the Offering, the Company is precluded from selling any more of its equity in a similar transaction, including use of the LPC Program and the ATM Program, for a period of 90 days following the Offering. |
Prepaid Expenses and Other As_2
Prepaid Expenses and Other Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Prepaid Expenses and Other Assets | |
Schedule of prepaid expenses and other current assets | March 31, December 31, 2020 2019 (in thousands) Prepaid insurance $ 417 $ 494 Deferred offering costs 129 — Recoupable deposits and other 208 175 $ 754 $ 669 |
Inventories, net (Tables)
Inventories, net (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Inventories, net | |
Schedule of inventories at the Velardena Properties | March 31, December 31, 2020 2019 (in thousands) Material and supplies $ 178 $ 231 $ 178 $ 231 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment, Net | |
Schedule of components of property, plant and equipment | March 31, December 31, 2020 2019 (in thousands) Mineral properties $ 9,353 $ 9,353 Exploration properties 2,518 2,518 Royalty properties 200 200 Buildings 3,755 3,755 Mining equipment and machinery 16,049 16,049 Other furniture and equipment 885 884 Asset retirement cost 948 866 33,708 33,625 Less: Accumulated depreciation and amortization (27,873) (27,594) $ 5,835 $ 6,031 |
Other Long-Term Assets (Tables)
Other Long-Term Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Other Long-Term Assets | |
Schedule of Other long-term assets | March 31, December 31, 2020 2019 (in thousands) Deferred offering costs $ 350 $ 511 Right of use assets 556 620 $ 906 $ 1,131 |
Accounts Payable and Other Ac_2
Accounts Payable and Other Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accounts Payable and Other Accrued Liabilities | |
Schedule of accounts payable and other accrued liabilities | March 31, December 31, 2020 2019 (in thousands) Accounts payable and accruals $ 981 $ 710 Accrued employee compensation and benefits 578 724 Value added tax payable — 401 Income taxes payable — 292 $ 1,559 $ 2,127 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Other Liabilities, Current | |
Schedule of other current liabilities | March 31, December 31, 2020 2019 (in thousands) Autlán refundable deposit $ 740 $ 1,251 Premium financing 298 455 Office lease liability 112 118 $ 1,150 $ 1,824 |
Asset Retirement and Reclamat_2
Asset Retirement and Reclamation Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Asset Retirement and Reclamation Liabilities | |
Summary of activity in the Velardena Properties ARO | Three Months Ended March 31, 2020 2019 (in thousands) Beginning balance $ 2,825 $ 2,660 Changes in estimates, and other 82 (60) Accretion expense 59 55 Ending balance $ 2,966 $ 2,655 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Measurements | |
Schedule of financial assets and liabilities at fair value | Level 1 Level 2 Level 3 Total (in thousands) At March 31, 2020 Assets: Cash and cash equivalents $ 2,212 $ — $ — $ 2,212 Derivative at fair value — — 39 39 $ 2,212 $ — $ 39 $ 2,251 At December 31, 2019 Assets: Cash and cash equivalents $ 4,593 $ — $ — $ 4,593 Derivative at fair value — — 254 254 $ 4,593 $ — $ 254 $ 4,847 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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, 2019 318,003 $ 0.45 Granted during the period — — Restrictions lifted during the period — — Forfeited during the period — — Outstanding March 31, 2020 318,003 $ 0.45 |
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, 2019 30,310 $ 8.06 Granted during the period — — Forfeited or expired during period — $ — Exercised during period — — Outstanding March 31, 2020 30,310 $ 8.06 Exercisable at end of period 30,310 $ 8.06 Granted and vested 30,310 $ 8.06 |
Schedule of restricted stock units | Weighted Average Grant Date Fair Number of Value Per Restricted Stock Units Shares Share Outstanding at December 31, 2019 2,830,038 $ 0.78 Granted during the period — — Restrictions lifted during the period — — Forfeited during the period — — Outstanding March 31, 2020 2,830,038 $ 0.78 |
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, 2019 14,653,846 $ 0.80 Granted during the period — — Dilution adjustment — — Expired during period — — Exercised during period — — Outstanding March 31, 2020 14,653,846 $ 0.80 |
Cash flow information (Tables)
Cash flow information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Supplemental Cash Flow Information | |
Schedule of reconciliation of net loss for the period to cash used in operations | Three Months Ended March 31, 2020 2019 (in thousands) Cash flows from operating activities: Net loss $ (3,336) $ (2,351) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 279 274 Accretion of asset retirement obligation 59 55 Decrease in derivative at fair value 215 — Loss (gain) on trading securities — 106 Asset write off — 16 Gain on reduction of asset retirement obligation — (39) Stock compensation 52 564 Changes in operating assets and liabilities from continuing operations: Decrease (increase) in lease receivable 138 (8) (Increase) decrease in prepaid expenses and other assets 43 (62) (Increase) decrease in inventories 53 (2) Increase in value added tax recoverable, net — (5) Increase in other long term assets 96 — Decrease in reclamation liability (1) (63) (Decrease) increase in accounts payable and accrued liabilities (568) 191 Decrease in deferred revenue (118) (73) Decrease in other current liabilities (675) (10) Decrease in other long term liabilities (56) — Net cash used in operating activities $ (3,819) $ (1,407) The following table sets forth supplemental cash flow information and non-cash transactions: Three Months Ended March 31, 2020 2019 (in thousands) Supplemental disclosure: Interest paid $ 26 $ — Income taxes paid $ 284 $ — Supplemental disclosure of non-cash transactions: Deferred equity offering costs amortized $ 32 $ 34 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Information | |
Schedule of financial information relating to discontinued operations and continuing operations | Exploration, El Costs Depreciation, Quevar, Velardeña Three Months Ended Applicable Depletion and and Administrative Pre-Tax (gain) Capital March 31, 2020 Revenue to Sales Amortization Expense loss Total Assets Expenditures Velardeña Properties $ 1,196 $ 564 $ 204 $ 657 $ 371 $ 4,663 $ 1 Corporate, Exploration and Other — — 75 2,848 2,965 5,572 — $ 1,196 $ 564 $ 279 $ 3,505 $ 3,336 $ 10,235 $ 1 Three Months Ended March 31, 2019 Velardeña Properties $ 1,932 $ 597 $ 202 $ 634 $ (316) $ 5,641 $ — Corporate, Exploration and Other — — 72 2,126 2,667 5,647 25 $ 1,932 $ 597 $ 274 $ 2,760 $ 2,351 $ 11,288 $ 25 |
Basis of Preparation of Finan_2
Basis of Preparation of Financial Statements and Nature of Operations (Details) - property | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2020 | Dec. 31, 2019 | |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||
Number of Exploration Properties | 12 | ||
Velardena properties | |||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | ||
El Quevar Project | |||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||
Business Acquisition, Percentage of Voting Interests Acquired | 70.00% | 100.00% |
Liquidity (Details)
Liquidity (Details) - USD ($) shares in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Apr. 30, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2020 | Mar. 31, 2021 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash and cash equivalents | $ 2,212,000 | $ 2,237,000 | $ 4,593,000 | $ 3,293,000 | |||
Other exploration and property holding costs | 4,400,000 | ||||||
Exploration expenditures | 1,631,000 | 855,000 | |||||
Shutdown and care and maintenance costs | 463,000 | 517,000 | |||||
General and administrative expenses | 1,163,000 | 1,074,000 | |||||
Increase in cash inflows | 2,000,000 | ||||||
Increase in working capital | 200,000 | ||||||
Debt - related party | 1,000,000 | ||||||
Net proceeds from the sale of the Company’s common stock | 439,000 | 337,000 | |||||
Remaining deposits payable | 740,000 | 1,251,000 | |||||
Income tax payments due | 292,000 | ||||||
Project expenditures | 9,000,000 | ||||||
Cash | 8,000,000 | ||||||
Payments to acquire property | $ 1,000 | $ 25,000 | |||||
Stock Issued During Period, Shares, Private Placement | 4.7 | ||||||
Private placements stock units, net | $ 2,800,000 | ||||||
Canada Revenue Agency [Member] | |||||||
Income tax payments due | 300,000 | ||||||
Mexican Tax Authority [Member] | |||||||
Income tax payments due | $ 400,000 | ||||||
Forecast | |||||||
Project expenditures | $ 9,000,000 | ||||||
Forecast | Canada | |||||||
Income tax payments due | 500,000 | ||||||
Velardena properties | |||||||
Shutdown and care and maintenance costs | 500,000 | ||||||
Oxide Plant | |||||||
Net operating margin | 600,000 | ||||||
El Quevar Project | |||||||
Other exploration and property holding costs | 200,000 | ||||||
LPC Program [Member] | |||||||
Other exploration and property holding costs | 400,000 | ||||||
LPC Program [Member] | Forecast | |||||||
General and administrative expenses | 3,100,000 | ||||||
Santa Maria property | |||||||
Sale of an investment | $ 900,000 | ||||||
Santa Maria property | Forecast | |||||||
Net operating margin | $ 2,100,000 | ||||||
Yoquivo and other properties | Forecast | |||||||
Other exploration and property holding costs | 2,200,000 | ||||||
Sand Canyon [Member] | |||||||
Exploration expenditures | 1,600,000 | ||||||
ATM Agreement | |||||||
Net proceeds from the sale of the Company’s common stock | $ 223,000 | ||||||
Common Stock Available For Future Issuance | 8.1 | ||||||
LPC Program [Member] | |||||||
Net proceeds from the sale of the Company’s common stock | $ 216,000 | ||||||
Common Stock Available For Future Issuance | 12.2 | ||||||
Electrum | Velardena properties | Forecast | |||||||
Shutdown and care and maintenance costs | 1,500,000 | ||||||
Autlan | Agreement | Forecast | |||||||
Payments to acquire property | $ 700,000 |
Correction of Immaterial Erro_2
Correction of Immaterial Error - Income Taxes (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | Jan. 31, 2018 |
Quantifying Misstatement in Current Year Financial Statements [Line Items] | ||||
Accumulated deficit | $ 520,116,000 | $ 516,780,000 | ||
Cumulative Effect Adjustment | ||||
Quantifying Misstatement in Current Year Financial Statements [Line Items] | ||||
Accumulated deficit | $ 267,000 | |||
Default In Tax Payments | Cumulative Effect Adjustment | ||||
Quantifying Misstatement in Current Year Financial Statements [Line Items] | ||||
Accumulated deficit | $ 113,000 | $ 154,000 |
Change in Accounting Principle
Change in Accounting Principle - Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jun. 30, 2019 | Jun. 01, 2019 |
Change in Accounting Principle | |||
Term of operating lease | 5 years 8 months | ||
Future lease payments discount rate | 9.50% | ||
COLORADO | |||
Change in Accounting Principle | |||
Right of use assets | $ 465 | ||
Lease liability | $ 450 | ||
Mexico and Argentina | |||
Change in Accounting Principle | |||
Right of use assets | $ 45 | ||
Lease liability | $ 45 | ||
Mexico | |||
Change in Accounting Principle | |||
Term of operating lease | 4 years | ||
Right of use assets | $ 174 | ||
Lease liability | $ 174 | ||
Argentina | |||
Change in Accounting Principle | |||
Term of operating lease | 2 years | ||
Right of use assets | $ 18 | ||
Lease liability | $ 18 |
Change in Accounting Principl_2
Change in Accounting Principle - Other Income Related to the Sale of Exploration Properties (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Change in Accounting Principle | ||
Accumulated Deficit | $ (520,116) | $ (516,780) |
Cumulative Effect Adjustment | ||
Change in Accounting Principle | ||
Accumulated Deficit | $ (267) |
Cash and Cash Equivalents and_2
Cash and Cash Equivalents and Short-term Investments (Details) $ in Billions | Mar. 31, 2020USD ($) |
Cash and Cash Equivalents and Short-Term Investments | |
Financial institutions minimum net worth | $ 1 |
Prepaid Expenses and Other As_3
Prepaid Expenses and Other Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Prepaid Expenses and Other Assets | ||
Prepaid insurance | $ 417 | $ 494 |
Deferred offering costs | 129 | |
Recoupable deposits and other | 208 | 175 |
Prepaid expenses and other assets | $ 754 | $ 669 |
Derivative at Fair Value (Detai
Derivative at Fair Value (Details) $ in Thousands | Dec. 03, 2019$ / item | Dec. 02, 2019$ / item | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Variable fee (per tonne) | $ / item | 11 | 22 | ||
Derivative at fair value | $ 39 | $ 254 | ||
Deferred Revenue | 135 | $ 180 | ||
Decrease in derivatives | (215) | |||
Plant Lease [Member] | ||||
Deferred Revenue | $ 45 |
Inventories, net (Details)
Inventories, net (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Inventories, net | ||
Material and supplies | $ 178 | $ 231 |
Inventories, net | 178 | 231 |
Obsolescence allowance | $ 200 | $ 200 |
Value added tax receivable, n_2
Value added tax receivable, net (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
VAT receivables offset against VAT payable | $ 73 | |
Mexico | ||
VAT receivables offset against VAT payable | $ 35 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Property, plant and equipment | ||
Property, plant and equipment, gross | $ 33,708 | $ 33,625 |
Less: Accumulated depreciation and amortization | (27,873) | (27,594) |
Property, plant and equipment, net | 5,835 | 6,031 |
Mineral properties | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 9,353 | 9,353 |
Exploration properties | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 2,518 | 2,518 |
Royalty properties | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 200 | 200 |
Buildings | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 3,755 | 3,755 |
Mining equipment and machinery | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 16,049 | 16,049 |
Other furniture and equipment | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 885 | 884 |
Asset retirement cost | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | $ 948 | $ 866 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net - Disposals (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Property, plant and equipment | ||
Property, plant and equipment, net | $ 5,835 | $ 6,031 |
Equipment Leased to Other Party [Member] | Velardena properties | ||
Property, plant and equipment | ||
Property, plant and equipment, net | $ 500 | $ 500 |
Other Long-Term Assets (Details
Other Long-Term Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Other Long-Term Assets | ||
Deferred offering costs | $ 350 | $ 511 |
Right of use assets | 556 | 620 |
Other long-term assets | $ 906 | $ 1,131 |
Accounts Payable and Other Ac_3
Accounts Payable and Other Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Accounts payable and accruals | $ 981 | $ 710 |
Accrued employee compensation and benefits | 578 | 724 |
Value added tax payable | 401 | |
Income taxes payable | 292 | |
Accounts payable and other accrued liabilities | 1,559 | 2,127 |
Accrued vacation | 200 | 200 |
Withholding taxes and benefits payable | 400 | 500 |
VAT receivables offset against VAT payable | 73 | |
Velardena properties | ||
Accounts payable and accruals | 400 | 300 |
Accrued employee compensation and benefits | 400 | 500 |
Corporate, Exploration & Other | ||
Accounts payable and accruals | $ 600 | $ 300 |
Debt - Related Party (Details)
Debt - Related Party (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Mar. 30, 2020 |
Short-term Debt [Line Items] | ||
Short Term Loan | $ 1,000 | |
Sentient | ||
Short-term Debt [Line Items] | ||
Ownership (as a percent) | 38.00% | |
Sentient Loan [Member] | ||
Short-term Debt [Line Items] | ||
Short Term Loan | $ 1,000 | $ 1,000 |
Short term loan interest rate | 10.00% | 10.00% |
Sentient Loan [Member] | Sentient | ||
Short-term Debt [Line Items] | ||
Ownership (as a percent) | 32.00% |
Other Liabilities (Details)
Other Liabilities (Details) $ in Thousands | Apr. 07, 2020USD ($) | Dec. 09, 2019USD ($) | Sep. 11, 2019USD ($) | Jun. 30, 2019USD ($)payment | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($)payment |
Other Liabilities | ||||||
Autlan refundable deposit | $ 740 | $ 1,251 | ||||
Premium financing | 298 | 455 | ||||
Office lease liability | 112 | 118 | ||||
Other current liabilities | $ 1,150 | $ 1,824 | ||||
Repayments of deposits | $ 81 | $ 257 | ||||
Refundable Deposit Interest Rate | 12.00% | 11.00% | ||||
Repayment of refundable deposit | $ 1,500 | $ 800 | ||||
Interest paid on refundable deposit | 32 | |||||
Refundable deposit outstanding including accrued interest | 700 | |||||
Interest expense on refundable deposit | 23 | |||||
Premium amount | $ 151 | |||||
Amount Financed For Premium Outstanding Balance | 13 | |||||
Number of payment | payment | 12 | 12 | ||||
Premium interest rate | 5.74% | 5.74% | ||||
Insurance premium payable | 285 | $ 482 | ||||
Other long term liabilities | $ 437 | $ 494 |
Asset Retirement and Reclamat_3
Asset Retirement and Reclamation Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Jun. 30, 2012 | |
Asset retirement and reclamation liabilities | $ 2,979 | ||
Summary of activity in the Velardena Operations ARO | |||
ARO, Beginning balance | 2,839 | ||
Accretion expense | 59 | $ 55 | |
ARO, Ending balance | 2,979 | ||
Velardena properties | |||
Asset retirement and reclamation liabilities | 2,966 | 2,655 | $ 1,900 |
Summary of activity in the Velardena Operations ARO | |||
ARO, Beginning balance | 2,825 | 2,660 | |
Changes in estimates, and other | 82 | (60) | |
Accretion expense | 59 | 55 | |
ARO, Ending balance | $ 2,966 | $ 2,655 |
Fair value measurements (Detail
Fair value measurements (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair value measurements | ||
Derivative at fair value | $ 39 | $ 254 |
Recurring | ||
Fair value measurements | ||
Cash and cash equivalents | 2,212 | 4,593 |
Derivative at fair value | 39 | 254 |
Assets | 2,251 | 4,847 |
Recurring | Level 1 | ||
Fair value measurements | ||
Cash and cash equivalents | 2,212 | 4,593 |
Assets | 2,212 | 4,593 |
Recurring | Level 3 | ||
Fair value measurements | ||
Derivative at fair value | 39 | 254 |
Assets | 39 | 254 |
Non-recurring | ||
Fair value Assumptions | ||
Fair value measurements | $ 0 | $ 0 |
Income Taxes - Deferred tax exp
Income Taxes - Deferred tax expenses (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Income Taxes | ||
Net deferred tax assets | $ 0 | $ 0 |
Net deferred tax liabilities | $ 0 | 0 |
Percentage of tax withholding | 5.00% | |
Amount of tax with-held | $ 284,000 | |
Interest on tax | 20,000 | |
Gross unrecognized tax benefits at beginning of period | $ 0 | $ 0 |
Equity - Issue and Conversion (
Equity - Issue and Conversion (Details) - USD ($) | Jul. 17, 2019 | Jul. 10, 2019 | Dec. 31, 2016 | Mar. 31, 2020 | Mar. 31, 2019 | May 09, 2018 |
Proceeds from issuance of common stock, net of issuance costs | $ 439,000 | $ 337,000 | ||||
Series A Warrants | ||||||
Exercise price | $ 0.33 | |||||
Expiration term of warrant | 5 years | |||||
Warrants issued | $ 2,100,000 | |||||
Expected volatility (as a percent) | 95.00% | |||||
Risk-free rate (as a percent) | 1.90% | |||||
Series B Warrants | ||||||
Exercise price | $ 0.33 | |||||
Incremental fair value of warrants | $ 300,000 | |||||
Expected volatility (as a percent) | 88.00% | |||||
Risk-free rate (as a percent) | 1.90% | |||||
ATM Agreement | ||||||
Common stock issued (in shares) | 823,452 | 33,995 | ||||
Aggregate value of securities allowed under agreement | $ 5,000,000 | |||||
Aggregate securities allowed under agreement (in shares) | 10,000,000 | |||||
Sale price (in dollars per shares) | $ 0.28 | $ 0.34 | ||||
Gross proceeds from common stock sale | $ 11,000 | |||||
Commission rate (as a percent) | 2.00% | |||||
Amortization of deferred cost | $ 8,000 | |||||
Proceeds from issuance of common stock, net of issuance costs | $ 223,000 | |||||
common shares available for issuance | 8,100,000 | |||||
Unamortized deferred cost | $ 129,000 | |||||
LPC Program [Member] | ||||||
Common stock issued (in shares) | 900,000 | |||||
Sale price (in dollars per shares) | $ 0.27 | |||||
Amortization of deferred cost | $ 24,000 | |||||
Proceeds from issuance of common stock, net of issuance costs | $ 216,000 | |||||
Total cost of offering | $ 300,000 | |||||
Placement agent fee (as a percent) | 6.00% | |||||
common shares available for issuance | 12,200,000 | |||||
Unamortized deferred cost | $ 353,000 | |||||
LPC Program [Member] | May 2016 Warrants | ||||||
Exercise price | $ 0.75 | |||||
LPC Program [Member] | Series A Warrants | ||||||
Common shares issuable upon exercise | 8,653,846 | |||||
Exercise price | $ 0.35 | |||||
Aggregate gross proceeds of warrants | $ 2,250,000 | |||||
LPC Program [Member] | Series B Warrants | ||||||
Common shares issuable upon exercise | 4,500,000 | |||||
Number of common shares which can be purchased with each warrant | 1 | |||||
Exercise price | $ 0.35 | |||||
Commitment purchase agreement | ||||||
Common stock issued (in shares) | 1,213,642 | |||||
Aggregate value of securities allowed under agreement | $ 10,000,000 | |||||
Sale price (in dollars per shares) | $ 0.30 | |||||
Amortization of deferred cost | $ 35,000 | |||||
Proceeds from issuance of common stock, net of issuance costs | $ 360,000 | |||||
Common Stock | LPC Program [Member] | ||||||
Share Price | $ 0.26 | |||||
Common stock issued (in shares) | 8,653,846 | 8,653,846 | ||||
Common Stock | Maximum | LPC Program [Member] | Series A Warrants | ||||||
Common stock issued (in shares) | 8,653,846 |
Equity - Non-Option Incentive (
Equity - Non-Option Incentive (Details) | Feb. 26, 2019USD ($)employeeshares | Mar. 31, 2020USD ($)$ / sharesshares | Mar. 31, 2019USD ($) |
Weighted Average Grant Date Fair Value Per Share - Non-option | |||
Compensation expense | $ | $ 52,000 | $ 564,000 | |
Modification of previously awarded KELTIP Units | $ | $ 583,000 | ||
KELTIP Units | Officers | |||
Number of Shares - Non-option | |||
Granted during the year (in shares) | shares | 705,000 | ||
Weighted Average Grant Date Fair Value Per Share - Non-option | |||
Number of employees | employee | 2 | ||
Equity Plan | Restricted Stock | |||
Number of Shares - Non-option | |||
Outstanding at beginning of year (in shares) | shares | 318,003 | ||
Outstanding at end of year (in shares) | shares | 318,003 | ||
Weighted Average Grant Date Fair Value Per Share - Non-option | |||
Outstanding at beginning of year (in dollars per share) | $ / shares | $ 0.45 | ||
Outstanding at end of year (in dollars per share) | $ / shares | $ 0.45 | ||
Compensation expense | $ | $ 17,000 | ||
Additional compensation expense expected to be recognized | $ | $ 45,000 | ||
Period for future recognition of additional compensation expense | 15 months | ||
Deferred Compensation Plan | Restricted Stock Units (RSUs) | |||
Number of Shares - Non-option | |||
Outstanding at beginning of year (in shares) | shares | 2,830,038 | ||
Outstanding at end of year (in shares) | shares | 2,830,038 | ||
Weighted Average Grant Date Fair Value Per Share - Non-option | |||
Outstanding at beginning of year (in dollars per share) | $ / shares | $ 0.78 | ||
Outstanding at end of year (in dollars per share) | $ / shares | $ 0.78 | ||
Compensation expense | $ | $ 35,000 | ||
Additional compensation expense expected to be recognized | $ | $ 21,000 | ||
Period for future recognition of additional compensation expense | 3 months | ||
Number of unrestricted shares Director to receive for vested RSU upon termination from board | shares | 1 | ||
KELTIP | |||
Number of Shares - Non-option | |||
Outstanding at beginning of year (in shares) | shares | 2,325,000 | ||
Granted during the year (in shares) | shares | 0 | ||
Outstanding at end of year (in shares) | shares | 2,325,000 | ||
KELTIP | KELTIP Units | Officers | |||
Weighted Average Grant Date Fair Value Per Share - Non-option | |||
Compensation expense | $ | $ 254,000 | ||
Additional compensation expense | $ | 227,000 | ||
Modification of previously awarded KELTIP Units | $ | $ 583,000 |
Equity - Option Incentive (Deta
Equity - Option Incentive (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Weighted Average Exercise Price Per Share - Options | ||
Compensation expense | $ 52 | $ 564 |
Employee Stock Option | Equity Plan | ||
Number of Shares - Options | ||
Outstanding at beginning of period (in shares) | 30,310 | |
Exercised during period (in shares) | 0 | |
Outstanding at end of year (in shares) | 30,310 | |
Exercisable at end of period (in shares) | 30,310 | |
Granted and vested (in shares) | 30,310 | |
Weighted Average Exercise Price Per Share - Options | ||
Outstanding at beginning of year (in dollars per share) | $ 8.06 | |
Exercised during period (in dollars per share) | 0 | |
Outstanding at end of year (in dollars per share) | 8.06 | |
Exercisable at end of period (in dollars per share) | 8.06 | |
Granted and vested (in dollars per share) | $ 8.06 |
Equity - Warrants (Details)
Equity - Warrants (Details) - USD ($) $ / shares in Units, $ in Millions | Jul. 17, 2019 | Jul. 10, 2019 | May 31, 2016 | Mar. 31, 2020 | Dec. 31, 2019 |
Warrant | |||||
Number of Underlying Shares | |||||
Outstanding, beginning balance (in shares) | 14,653,846 | ||||
Outstanding, end balance (in shares) | 14,653,846 | 14,653,846 | |||
Weighted Average Exercise Price Per Share | |||||
Outstanding, beginning balance (in dollars per share) | $ 0.80 | ||||
Outstanding, end balance (in dollars per share) | 0.80 | $ 0.80 | |||
May 2016 Warrants | |||||
Weighted Average Exercise Price Per Share | |||||
Exchanged during period (in shares) | 4,500,000 | ||||
Series A Warrants | |||||
Weighted Average Exercise Price Per Share | |||||
Outstanding, end balance (in dollars per share) | $ 0.33 | ||||
Expiration term of warrant | 5 years | ||||
Warrants exercise period | 6 months | ||||
Series B Warrants | |||||
Weighted Average Exercise Price Per Share | |||||
Outstanding, end balance (in dollars per share) | $ 0.33 | ||||
Exchanged during period (in shares) | 4,500,000 | ||||
Exchanged during the period (in dollar per share) | $ 0.35 | ||||
Warrants exercise period | 6 months | ||||
Registered Offering | |||||
Weighted Average Exercise Price Per Share | |||||
Sale price (in dollars per shares) | $ 0.50 | ||||
Common stock issued (in shares) | 8,000,000 | ||||
Gross proceeds from common stock sale | $ 4 | ||||
Registered Offering | 2016 Warrants | |||||
Number of Underlying Shares | |||||
Outstanding, end balance (in shares) | 6,000,000 | ||||
Weighted Average Exercise Price Per Share | |||||
Number of shares of common stock per capital unit (in shares) | 0.75 | ||||
Term of warrants | 5 years | ||||
LPC Program [Member] | |||||
Weighted Average Exercise Price Per Share | |||||
Sale price (in dollars per shares) | $ 0.27 | ||||
Common stock issued (in shares) | 900,000 | ||||
LPC Program [Member] | May 2016 Warrants | |||||
Weighted Average Exercise Price Per Share | |||||
Outstanding, end balance (in dollars per share) | $ 0.75 | ||||
LPC Program [Member] | Series A Warrants | |||||
Weighted Average Exercise Price Per Share | |||||
Outstanding, end balance (in dollars per share) | $ 0.35 | ||||
Common shares issuable upon exercise | 8,653,846 | ||||
LPC Program [Member] | Series B Warrants | |||||
Weighted Average Exercise Price Per Share | |||||
Outstanding, end balance (in dollars per share) | $ 0.35 | ||||
Number of common shares which can be purchased with each warrant | 1 | ||||
Common shares issuable upon exercise | 4,500,000 | ||||
Common Stock | LPC Program [Member] | |||||
Weighted Average Exercise Price Per Share | |||||
Common stock issued (in shares) | 8,653,846 | 8,653,846 |
Revenue Deferred Revenue and Re
Revenue Deferred Revenue and Related Costs Oxide Plant Lease and Oxide Plant Lease Costs (Details) $ / shares in Units, $ in Thousands, shares in Millions | Dec. 03, 2019$ / item | Dec. 02, 2019$ / item | Aug. 02, 2017USD ($)$ / sharesshares | Jan. 31, 2020$ / item | Dec. 31, 2019USD ($) | Aug. 31, 2017 | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) |
Oxide plant lease | $ 1,196 | $ 1,932 | ||||||
Lease related costs | 564 | 597 | ||||||
Increase (Decrease) in Deferred Revenue | (118) | (73) | ||||||
Lease payment | 125 | |||||||
Variable fee (per tonne) | $ / item | 11 | 22 | ||||||
Minimum | ||||||||
Variable fee (per tonne) | $ / item | 11 | |||||||
Maximum | ||||||||
Variable fee (per tonne) | $ / item | 22 | |||||||
Oxide Plant | ||||||||
Renewal term | 2 years | |||||||
Expected lease proceeds | $ 1,000 | 100 | $ 100 | |||||
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 | |||||||
Termination notice period | 120 days | |||||||
Deferred revenue | 200 | |||||||
Increase (Decrease) in Deferred Revenue | $ 74 | $ (170) |
Interest and Other Income (Deta
Interest and Other Income (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Golden Tag | |
Interest and Other Income [Line Items] | |
Interest and other expense | $ 0.1 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities: | ||
Net loss | $ (3,336) | $ (2,351) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 279 | 274 |
Accretion of asset retirement obligation | 59 | 55 |
Decrease in derivative at fair value | 215 | |
Loss (gain) on trading securities | 106 | |
Asset write off | 16 | |
Gain on reduction of asset retirement obligation | (39) | |
Stock compensation | 52 | 564 |
Changes in operating assets and liabilities from continuing operations: | ||
Decrease (increase) in lease receivable | 138 | (8) |
Increase (decrease) in prepaid expenses and other assets | 43 | (62) |
Increase (decrease) in inventories | 53 | (2) |
Decrease in value added tax recoverable, net | (5) | |
Increase in other long term assets | 96 | |
(Decrease) increase in reclamation liability | (1) | (63) |
Increase in accounts payable and accrued liabilities | (568) | 191 |
Decrease in deferred revenue | (118) | (73) |
Increase in deferred labilities | (675) | (10) |
Decrease in other liabilities | (56) | |
Net cash used in operating activities | $ (3,819) | $ (1,407) |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information - Supplemental and Non-cash transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Supplemental Cash Flow Information | ||
Interest paid | $ 26 | |
Income taxes paid | 284 | |
Deferred equity offering costs amortized | $ 32 | $ 34 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Contingencies | ||
Loss contingency | $ 0 | $ 0 |
Gain on contingencies | $ 0 | $ 0 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020USD ($)segment | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | |
Segment Information | |||
Number of reportable segments | segment | 2 | ||
Revenue | $ 1,196 | $ 1,932 | |
Mineral Extraction Processing and Marketing Costs | 564 | 597 | |
Depreciation, depletion and amortization | 279 | 274 | |
Exploration, El Quevar, Velardena and Administrative Expense | 3,505 | 2,760 | |
Pre-Tax (Income)/Loss | 3,336 | 2,351 | |
Total Assets | 10,235 | 11,288 | $ 13,357 |
Capital Expenditures | $ 1 | 25 | |
Velardena properties | |||
Segment Information | |||
Number of reportable segments | segment | 1 | ||
Revenue | $ 1,196 | 1,932 | |
Mineral Extraction Processing and Marketing Costs | 564 | 597 | |
Depreciation, depletion and amortization | 204 | 202 | |
Exploration, El Quevar, Velardena and Administrative Expense | 657 | 634 | |
Pre-Tax (Income)/Loss | 371 | (316) | |
Total Assets | 4,663 | 5,641 | |
Capital Expenditures | 1 | ||
Corporate, Exploration & Other | |||
Segment Information | |||
Depreciation, depletion and amortization | 75 | 72 | |
Exploration, El Quevar, Velardena and Administrative Expense | 2,848 | 2,126 | |
Pre-Tax (Income)/Loss | 2,965 | 2,667 | |
Total Assets | $ 5,572 | 5,647 | |
Capital Expenditures | $ 25 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 1 Months Ended | 3 Months Ended | ||
Aug. 31, 2016 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 30, 2020 | |
Related Party Transaction | ||||
Debt - related party | $ 1,000,000 | |||
Sentient | ||||
Related Party Transaction | ||||
Ownership (as a percent) | 38.00% | |||
Administrative Services | ||||
Related Party Transaction | ||||
Received amount | $ 45,000 | $ 45,000 | ||
Minera Inde | ||||
Related Party Transaction | ||||
Monthly charges received | $ 15,000 | |||
Sentient Loan [Member] | ||||
Related Party Transaction | ||||
Debt - related party | $ 1,000,000 | $ 1,000,000 | ||
Short term loan interest rate | 10.00% | 10.00% | ||
Sentient Loan [Member] | Sentient | ||||
Related Party Transaction | ||||
Ownership (as a percent) | 32.00% |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 20, 2020 | Apr. 09, 2020 | Jul. 17, 2019 | Mar. 31, 2020 | Mar. 31, 2019 |
Subsequent Event | |||||
Proceeds from Issuance of Common Stock | $ 439 | $ 337 | |||
Private Placement | Subsequent Event [Member] | |||||
Subsequent Event | |||||
Total cost of offering | $ 250 | ||||
Placement agent fee (as a percent) | 6.00% | ||||
Future Right Percentage Of Offerings | 50.00% | ||||
Offering Agreement Period Precluded From Selling Similar Equity | 90 days | ||||
Private Placement | Subsequent Event [Member] | Common Stock | |||||
Subsequent Event | |||||
Common stock issued (in shares) | 15,000,000 | ||||
Share Price | $ 0.20 | ||||
Warrants to purchase common stock | 11,250,000 | ||||
Private Placement | Subsequent Event [Member] | Maximum | |||||
Subsequent Event | |||||
Warrants exercise period | 5 years | ||||
Private Placement | Subsequent Event [Member] | Minimum | |||||
Subsequent Event | |||||
Warrants exercise period | 6 months | ||||
El Quevar Project | Barrick Earn-In Agreement [Member] | Subsequent Event [Member] | |||||
Subsequent Event | |||||
Investment ownership percentage | 70.00% | ||||
Common stock issued (in shares) | 4,700,000 | ||||
Share Price | $ 0.21 | ||||
Proceeds from Issuance of Common Stock | $ 1,000 | ||||
Warrants Series A and B [Member] | Private Placement | Subsequent Event [Member] | |||||
Subsequent Event | |||||
Share Price | $ 0.30 | ||||
Aggregate gross proceeds of warrants | $ 3,000 | ||||
Series A Warrants | |||||
Subsequent Event | |||||
Warrants exercise period | 6 months | ||||
Series A Warrants | Private Placement | Subsequent Event [Member] | Common Stock | |||||
Subsequent Event | |||||
Warrants to purchase common stock | 7,500,000 | ||||
Series B Warrants | |||||
Subsequent Event | |||||
Warrants exercise period | 6 months | ||||
Series B Warrants | Private Placement | Subsequent Event [Member] | Common Stock | |||||
Subsequent Event | |||||
Warrants to purchase common stock | 3,750,000 |