Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | May. 10, 2016 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | GOLDEN QUEEN MINING CO LTD | |
Entity Central Index Key | 1,025,362 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Trading Symbol | GQM | |
Entity Common Stock, Shares Outstanding | 99,928,683 |
Condensed Consolidated Interim
Condensed Consolidated Interim Balance Sheets - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash | $ 26,658,270 | $ 37,587,311 |
Receivables | 26,164 | 23,962 |
Inventory (Note 2) | 4,424,044 | 1,935,599 |
Prepaid expenses and other current assets | 439,784 | 432,353 |
Total current assets | 31,548,262 | 39,979,225 |
Property, plant, equipment and mineral interests (Note 3) | 136,785,656 | 128,562,572 |
Reclamation financial assurance deposit (Note 5) | 0 | 902,382 |
Total Assets | 168,333,918 | 169,444,179 |
Current liabilities: | ||
Accounts payable and accrued liabilities (Note 7(i)) | 3,631,830 | 3,258,692 |
Interest payable (Note 7(ii)) | 988,696 | 969,645 |
Notes payable (Note 7(ii)) | 37,634,420 | 36,053,012 |
Current portion of loan payable (Note 12) | 5,057,912 | 4,942,716 |
Derivative liability - Warrants (Note 7(iii)) | 9,423,226 | 2,498,269 |
Derivative liability- Hedging instruments (Note 8) | 106,268 | 0 |
Total current liabilities | 56,842,352 | 47,722,334 |
Asset retirement obligations (Note 5) | 1,075,149 | 978,453 |
Loan payable (Note 12) | 12,379,776 | 13,430,107 |
Deferred tax liability | 12,922,000 | 12,922,000 |
Total liabilities | 83,219,277 | 75,052,894 |
Temporary Equity | ||
Redeemable portion of non-controlling interest (Note 7(v)) | 26,981,875 | 27,123,741 |
Shareholders’ Equity | ||
Common shares, no par value, unlimited shares authorized (2015 -unlimited); 99,928,683 (2015 - 99,778,683) shares issued and outstanding (Note 4) | 62,860,443 | 62,860,443 |
Additional paid-in capital | 43,631,310 | 43,627,511 |
Deficit accumulated | (88,831,798) | (79,906,021) |
Total shareholders’ equity attributable to GQM Ltd. | 17,659,955 | 26,581,933 |
Non-controlling interest (Note 7(v)) | 40,472,811 | 40,685,611 |
Total Shareholders’ Equity | 58,132,766 | 67,267,544 |
Total Liabilities, Temporary Equity and Shareholders’ Equity | $ 168,333,918 | $ 169,444,179 |
Condensed Consolidated Interim3
Condensed Consolidated Interim Balance Sheets (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Common Stock, No Par Value | $ 0 | $ 0 |
Common Stock, Shares Authorized, Unlimited | Unlimited | Unlimited |
Common Stock, Shares, Issued | 99,928,683 | 99,778,683 |
Common Stock, Shares, Outstanding | 99,928,683 | 99,778,683 |
Condensed Consolidated Interim4
Condensed Consolidated Interim Statements of Loss and Comprehensive Loss - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
General and administrative expenses | $ (1,527,176) | $ (739,533) |
Change in fair value of derivative liability including change in foreign exchange (Notes 7(iii) and 8) | (7,031,225) | (101,749) |
Total Operating Expenses | (8,558,401) | (841,282) |
Interest expense (Note 7(iv)) | (761,571) | (947,753) |
Interest income | 39,529 | 66,142 |
Net loss and comprehensive loss for the period | (9,280,443) | (1,722,893) |
Deduct: Net loss and comprehensive loss attributable to the non-controlling interest for the period (Note 7(v)) | 354,666 | 286,706 |
Net loss and comprehensive loss attributable to Golden Queen Mining Co Ltd. for the period | $ (8,925,777) | $ (1,436,187) |
Loss per share - basic (Note 11) (in dollars per share) | $ (0.09) | $ (0.01) |
Loss per share - diluted (Note 11) (in dollars per share) | $ (0.09) | $ (0.01) |
Weighted average number of common shares outstanding - basic and diluted (in shares) | 99,928,683 | 98,785,350 |
Condensed Consolidated Interim5
Condensed Consolidated Interim Statements of Shareholders’ Equity, Non-controlling Interest and Redeemable Portion of Non-controlling Interest - USD ($) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Deficit Accumulated [Member] | Total Shareholders' Equity attributable to GQM Ltd [Member] | Non-controlling Interest [Member] | Redeemable Portion of Non-controlling Interest [Member] |
Balance at Dec. 31, 2014 | $ 65,983,177 | $ 62,709,015 | $ 43,468,510 | $ (74,444,816) | $ 31,732,709 | $ 34,250,468 | $ 22,833,645 |
Balance (in shares) at Dec. 31, 2014 | 99,778,683 | ||||||
Issuance of common shares as part of management agreement (Note 6) | 151,428 | $ 151,428 | 0 | 0 | 151,428 | 0 | 0 |
Issuance of common shares as part of management agreement (in shares) | 150,000 | ||||||
Stock-based compensation | 159,001 | $ 0 | 159,001 | 0 | 159,001 | 0 | 0 |
Capital contribution from non-controlling interest (Note 7(v)) | 7,500,000 | 0 | 0 | 0 | 0 | 7,500,000 | 5,000,000 |
Net loss for the period | (6,526,062) | 0 | 0 | (5,461,205) | (5,461,205) | (1,064,857) | (709,904) |
Balance at Dec. 31, 2015 | 67,267,544 | $ 62,860,443 | 43,627,511 | (79,906,021) | 26,581,933 | 40,685,611 | 27,123,741 |
Balance (in shares) at Dec. 31, 2015 | 99,928,683 | ||||||
Stock-based compensation | 3,799 | $ 0 | 3,799 | 0 | 3,799 | 0 | 0 |
Net loss for the period | (9,138,577) | 0 | 0 | (8,925,777) | (8,925,777) | (212,800) | (141,866) |
Balance at Mar. 31, 2016 | $ 58,132,766 | $ 62,860,443 | $ 43,631,310 | $ (88,831,798) | $ 17,659,955 | $ 40,472,811 | $ 26,981,875 |
Balance (in shares) at Mar. 31, 2016 | 99,928,683 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating activities: | ||
Net loss for the period | $ (9,280,443) | $ (1,722,893) |
Adjustments to reconcile net loss to cash used in operating activities: | ||
Amortization and depreciation | 6,739 | 7,700 |
Amortization of debt discount and interest accrual | 761,571 | 934,342 |
Change in fair value of derivative liabilities including change in foreign exchange | 7,031,225 | 101,749 |
Stock-based compensation | 3,799 | 0 |
Non-cash consulting expense | 0 | 151,428 |
Foreign exchange gain | 0 | (581,102) |
Changes in assets and liabilities: | ||
Receivables | (2,202) | 17,635 |
Prepaid expenses and other current assets | (7,431) | (143,117) |
Inventory | (1,620,940) | 0 |
Accounts payable and accrued liabilities | 51,807 | 132,611 |
Interest payable | (144,284) | (250,000) |
Cash used in operating activities | (3,200,159) | (1,351,647) |
Investment activities: | ||
Additions to property, plant, equipment and mineral interests | (7,401,004) | (18,131,600) |
Release (purchase) of reclamation financial assurance deposit | 902,382 | (14) |
Cash used in investing activities | (6,498,622) | (18,131,614) |
Financing activities: | ||
Repayment of loans payable | (1,230,260) | (90,779) |
Repayment of short-term debt | 0 | (2,500,000) |
Financing fees related to short-term debt capitalized to the loan | 0 | (250,000) |
Cash provided by financing activities | (1,230,260) | (2,840,779) |
Net change in cash | (10,929,041) | (22,324,040) |
Cash, Beginning balance | 37,587,311 | 91,407,644 |
Cash, Ending balance | $ 26,658,270 | $ 69,083,604 |
Business Description and Accoun
Business Description and Accounting Policies | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Business Description and Accounting Policies [Text Block] | Nature of Business Golden Queen Mining Co. Ltd. (“Golden Queen”, “GQM Ltd.” or the “Company”) is engaged in the development of the Soledad Mountain Project (“the Project”), located in the Mojave Mining District, Kern County, California. The construction phase of the Project was completed in February 2016 and the Company commenced production in March 2016. The Company originally used its wholly owned subsidiary, Golden Queen Mining Company, Inc. (“GQM Inc.”), to explore and develop the Project. On September 10, 2014, GQM Inc. was converted to a limited liability company, Golden Queen Mining Company, LLC (“GQM LLC”). The Company entered into a Joint Venture (the “JV”) agreement with Gauss LLC (“Gauss”) through its newly formed, wholly owned subsidiary, Golden Queen Mining Holdings, Inc. (“GQM Holdings”). The JV was completed on September 15, 2014. Upon completion of the JV, both the Company, through GQM Holdings, and Gauss each owned, and continue to own, 50 Basis of Preparation These unaudited condensed consolidated interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The accounting policies followed in preparing these condensed consolidated interim financial statements are those used by the Company as set out in the audited consolidated financial statements for the year ended December 31, 2015. Certain information and note disclosures normally included for annual consolidated financial statements prepared in accordance with U.S. GAAP have been omitted. These condensed consolidated interim financial statements should be read together with the audited consolidated financial statements of the Company for the year ended December 31, 2015. In the opinion of management, all adjustments considered necessary (including reclassifications and normal recurring adjustments) to present fairly the financial position, results of operations and cash flows at March 31, 2016 and for all periods presented, have been included in these financial statements. The interim results are not necessarily indicative of results for the full year ending December 31, 2016, or future operating periods. For further information, see the Company’s annual consolidated financial statements, including the accounting policies and notes thereto. The preparation of financial statements in conformity with GAAP requires management to make judgements, estimates, and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates and judgements have been made by Management in several areas including the accounting for the joint venture transaction and determination of temporary and permanent non-controlling interest, the recoverability of mineral properties expenditures, royalty obligations, inventory valuations, ore on heap leach pads, asset retirement obligations, convertible debentures, and derivative liability warrants. A key judgement for 2016 relates to when the Soledad Mountain mine enters the production phase. Generally, under US GAAP a mine would be considered to be in the production phase once it has demonstrated that it is producing saleable quantities of product. As at March 31, 2016, the Soledad Mountain mine is not considered to have entered the production phase. Principles of Consolidation The Company consolidates all entities in which it can vote a majority of the outstanding voting stock. In addition, it consolidates entities which meet the definition of a variable interest entity for which it is the primary beneficiary. The primary beneficiary is the party who has the power to direct the activities of a variable interest entity that most significantly impact the entity’s economic performance and who has an obligation to absorb losses of the entity or a right to receive benefits from the entity that could potentially be significant to the entity. We consider special allocations of cash flows and preferences, if any, to determine amounts allocable to non-controlling interests. All intercompany transactions and balances are eliminated in consolidation. These condensed consolidated interim financial statements include the accounts of Golden Queen, a British Columbia corporation, its wholly-owned subsidiaries, GQM Canada, GQM Holdings, a US (State of California) corporation, and GQM LLC, a limited liability company in which Golden Queen has a 50 (i) Effective August 2014, FASB issued Accounting Standards update (“ASU”) 2014-15, Presentation of Financial Statements Going Concern (Subtopic 205-40 Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. The update essentially requires management of all entities, for annual and interim periods, to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date the financial statements are issued. If conditions or events raise substantial doubt about an entity’s ability to continue as a going concern, but the substantial doubt is alleviated as a result of consideration of management’s plans, the entity should disclose information that enables users of the financial statements to understand all of the following: 1. Principal conditions or events that raised substantial doubt about the entity’s ability to continue as a going concern (before consideration of management’s plans). 2. Management’s evaluation of the significance of those conditions or events in relation to the entity’s ability to meet its obligations. 3. Management’s plans that alleviated substantial doubt about the entity’s ability to continue as a going concern. If conditions or events raise substantial doubt about an entity’s ability to continue as a going concern, and substantial doubt is not alleviated after consideration of management’s plans, an entity should include a statement in the footnotes indicating that there is substantial doubt about the entity’s ability to continue as a going concern This update will come into effect for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. The Company is assessing the impact of this standard. (ii) In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810) Amendments to the Consolidation Analysis ⋅ Placing more emphasis on risk of loss when determining a controlling financial interest. A reporting organization may no longer have to consolidate a legal entity in certain circumstances based solely on its fee arrangement, when certain criteria are met. ⋅ Reducing the frequency of the application of related-party guidance when determining a controlling financial interest in a variable interest entity (VIE). ⋅ Changing consolidation conclusions for public and private companies in several industries that typically make use of limited partnerships or VIEs. The ASU will be effective for periods beginning after December 15, 2015, for public companies. Early adoption is permitted, including adoption in an interim period. The Company adopted the ASU effective January 1, 2016. The Company assessed and concluded there was no impact on the Company with the adoption of the new standard. (iii) In January 2016, FASB issued ASU 2016-01, Financial Instruments Recognition and measurement of financial assets and financial liabilities (Subtopic 825-10) which updates several aspects of recognition, measurement, presentation and disclosure of financial instruments. The amendments that are relevant to the Company are as follows: 1. Eliminate the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet. 2. Require public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. 3. Require separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements. The ASU will be effective for periods beginning after December 15, 2017, for public companies. The Company is assessing the impact of this standard. (iv) In March 2016, FASB issued ASU 2016-09, Compensation Stock Compensation (Subtopic 718) which updates several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The ASU will be effective for periods beginning after December 15, 2016, for public companies. The Company is assessing the impact of this standard. |
Ability to Continue as a Going
Ability to Continue as a Going Concern | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting [Text Block] | 1. Ability to Continue as a Going Concern The Company has generated no revenues from operations since inception and as at March 31, 2016 had an accumulated deficit of $ 88,831,798 25,294,090 3,055,875 Golden Queen, on a non-consolidated basis, currently does not have sufficient funds to repay the $ 37,500,000 While Golden Queen has been successful at certain of these efforts in the past, there can be no assurance that future efforts will be successful. This raises substantial doubt about this entity’s ability to continue as a going concern. At the Project level, GQM LLC has sufficient funds to meet its contractual obligations for the next twelve months. The Company’s access to the net assets of GQM LLC is determined by the Board of Managers of GQM LLC. The Board of Managers is not controlled by the Company and therefore there is no guarantee that any access to the net assets of GQM LLC would be provided to the Company in order to continue as a going concern. The Board of Managers of GQM LLC determine when and if distributions from GQM LLC are made to the holders of its membership units at their sole discretion. These condensed consolidated interim financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. Such adjustments could be material. |
Inventory
Inventory | 3 Months Ended |
Mar. 31, 2016 | |
Inventory, Net [Abstract] | |
Inventory Disclosure [Text Block] | 2. Inventory March 31, 2016 December 31, 2015 Stockpile inventory $ 1,018,603 $ 1,259,669 Dore inventory 255,527 - Supplies and spare parts 1,122,325 592,690 $ 2,396,455 $ 1,852,359 Ore on heap leach pad: Current $ 2,027,588 83,240 |
Property, Plant, Equipment and
Property, Plant, Equipment and Mineral Interests | 3 Months Ended |
Mar. 31, 2016 | |
Property, Plant and Equipment, Net [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | 3. Property, Plant, Equipment and Mineral Interests March 31, 2016 December 31, 2015 Land $ 3,895,681 $ 109,600 Mineral property interest and claims 1,896,239 4,458,744 Mine development 38,274,609 86,038,407 Mine equipment 55,855,709 25,425,661 Buildings 17,010,959 5,691,335 Computer equipment and software 304,582 51,030 Vehicles 1,956,586 218,822 Infrastructure (Water/power) 10,905,711 978,573 Asset retirement costs 723,574 626,878 Capitalized interest 6,180,069 5,174,846 Less: Accumulated depreciation, depletion and amortization expensed (218,063) (211,324) $ 136,785,656 $ 128,562,572 During the three month period ended March 31, 2016, the Company capitalized depreciation of $ 3,777,949 1,850,403 The Company is capitalizing a portion of the interest expense related to the convertible debenture and notes payable in accordance with its accounting policy. See Note 7 (iv) Amortization of Discounts and Interest Expense. |
Share Capital
Share Capital | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | 4. Share Capital The Company’s common shares outstanding are no par value, voting shares with no preferences or rights attached to them. Common shares 2016 During the three months ended March 31, 2016, no common shares were issued by the Company. Common shares 2015 In March 2015, the Company issued 150,000 151,428 Stock options The Company has elected to use the Black-Scholes option pricing model to determine the fair value of stock options granted. In accordance with the accounting standard for employees, the compensation expense is amortized on a straight-line basis over the requisite service period, which approximates the vesting period. Compensation expense for stock options granted to non-employees is amortized over the contract services period or, if none exists, from the date of grant until the options vest. Compensation associated with unvested options granted to non-employees is re-measured on each balance sheet date using the Black-Scholes option pricing model. Shares Weighted Options outstanding and exercisable, December 31, 2014 750,000 $ 1.29 Options issued 570,000 $ 0.58 Options forfeited (250,000) $ 1.18 Options outstanding, December 31, 2015 1,070,000 $ 0.94 Options exercisable, December 31, 2015 976,667 $ 0.97 Options outstanding, March 31, 2016 1,070,000 $ 0.94 Options exercisable, March 31, 2016 976,667 $ 0.97 There were no stock options issued, expired, forfeited or cancelled during the three months ended March 31, 2016 and 2015. During the three months ended March 31, 2016, the Company recognized $ 3,799 As at March 31, 2016, the aggregate intrinsic value of the outstanding exercisable options was $ 521,217 Expiry Number Number Remaining Exercise June 3, 2018 50,000 50,000 2.18 $ 1.16 September 3, 2018 150,000 150,000 2.43 $ 1.59 September 18, 2018 300,000 300,000 2.47 $ 1.26 September 8, 2020 570,000 476,667 4.44 $ 0.58 Balance, March 31, 2016 1,070,000 976,667 3.50 |
Asset Retirement Obligations an
Asset Retirement Obligations and Financial Reclamation Assurance | 3 Months Ended |
Mar. 31, 2016 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligation Disclosure [Text Block] | 5. Asset Retirement Obligations and Financial Reclamation Assurance Financial Reclamation Assurance The Company is required to provide the Bureau of Land Management, the State Office of Mine Reclamation and Kern County with a revised reclamation cost estimate annually. The financial assurance is adjusted once the cost estimate is approved. The Company’s provision for reclamation of the property is estimated each year by an independent consulting engineer. This estimate, once approved by state and county authorities, forms the basis for the reclamation financial assurance. The reclamation assurance provided as at March 31, 2016 was $ 624,142 624,142 The Company is also required to provide financial assurance with the Lahontan Regional Water Quality Control Board (the “Regional Board”) for closure and reclamation costs related to the lined impoundments, which are defined as the Stage 1 heap leach pad, the overflow pond, and the solution collection channel. The reclamation financial assurance estimate for as of March 31, 2016 is $ 1,210,889 In addition to the above, the Company is required to obtain and maintain financial assurance for initiating and completing corrective action and remediation of a reasonably foreseeable release from the Project’s waste management units as required by the Regional Board. The reclamation financial assurance estimate for as of March 31, 2016 is $ 278,240 278,240 In January 2016 the company entered into $ 2.1 Asset Retirement Obligation The total asset retirement obligation as of March 31, 2016 is $ 1,075,149 978,453 The Company estimated its asset retirement obligations based on its understanding of the requirements to reclaim and clean-up its property based on its activities to date. During the three months ended March 31, 2016, there was an increase of $ 96,696 9.20 9.20 2.27 2.27 March 31, 2016 December 31, 2015 Balance, beginning of the period $ 978,453 $ 624,142 Changes in cash flow estimates 96,696 278,240 Balance, end of the period $ 1,075,149 $ 978,453 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 6. Commitments and Contingencies Property rent payments (Advance minimum royalties) The Company has acquired a number of mineral properties outright. It has acquired exclusive rights to explore, develop and mine other portions of the Project under various mining lease agreements with landowners. The Company is required to make property rent payments related to its mining lease agreements with landholders, in the form of advance minimum royalties. The total property rent payments for the three months ended March 31, 2016 were $ 2,500 10,000 75,000 There are multiple third party landholders and the royalty amount due to each landholder over the life of the Project varies with each property. Finder’s fee The Company has agreed to issue 100,000 Compliance with Environmental Regulations The Company’s exploration and development activities are subject to laws and regulations controlling not only the exploration and mining of mineral properties, but also the effect of such activities on the environment. Compliance with such laws and regulations may necessitate additional capital outlays or affect the economics of a project, and cause changes or delays in the Company’s activities. The Company may, from time to time, be involved in legal proceedings and claims that arise in the ordinary course of business. The Company believes that any adverse outcome of existing claims, individually or in the aggregate, would not have a material effect on its financial position, results of operations or cash flows. Mine Development Commitments As of March 31, 2016, GQM LLC has approximately $ 2.0 See Note 12 for further details on the mining equipment loans. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | 7. Related Party Transactions Except as noted elsewhere in these consolidated financial statements, related party transactions are disclosed as follows: (i) Consulting Fees For the three months ended March 31, 2015, the Company paid $ 188,934 151,428 150,000 During the three months ended March 31, 2016, the Company paid a total of $ 28,535 18,438 (ii) Notes Payable On January 1, 2014, the Company entered into an agreement to secure a $ 10,000,000 7,500,000 5 The January 2014 Loan was repaid on a date that is less than 183 days before the maturity date. As a result, the Company paid the Lenders an additional charge in the amount that is equivalent to 5 5 7,500,000 375,000 375,000 The remaining balance of the loan, $ 2,500,000 125,000 125,000 On December 31, 2014 the Company also entered into a new loan (the “December 2014 Loan”) with the same parties for an amount of $ 12,500,000 July 1, 2015 10 50 1,000,000 750,000 250,000 90,916 118,695 On June 8, 2015, the Company amended the December 2014 Loan to extend the maturity to December 8, 2016 12,500,000 37,500,000 10,000,000 June 8, 2020 0.95 1,500,000 46,408 March 31, 2016 December 31, 2015 Balance, beginning of the period $ 36,053,012 $ 13,881,305 Accretion of discount on the June 2015 Loan 606,422 1,374,228 Interest payable transferred to principal balance of the June 2015 Loan 974,986 1,181,507 Fair value at inception, notes payable - 33,497,277 Repayment of loans - (2,500,000) Accretion of financing and legal fees - 967,156 Extinguishment of the December 2014 Loan - (12,500,000) Loss on extinguishment of debt - 151,539 Balance, end of the period $ 37,634,420 $ 36,053,012 Interest payable relating to the June 2015 Loan as at March 31, 2016 was $ 988,696 969,645 (iii) Share Purchase Warrants On June 8, 2015 the Company issued 10,000,000 June 8, 2020 0.95 The share purchase warrants meet the definition of a derivative liability instrument as the exercise price is not a fixed price as described above. Therefore, the settlement feature does not meet the “fixed-for-fixed” criteria outlined in ASC 815-40-15. The fair value of the derivative liability related to the share purchase warrants as at March 31, 2016 is $ 9,423,226 2,498,269 2016 2015 Risk-free interest rate 0.68% 0.73% - 1.02% Expected life of derivative liability 4.19 years 4.44 - 5 years Expected volatility 79.45% 72.29% - 76.11% Dividend rate 0.00% 0.00% March 31, 2016 December 31, 2015 Balance, beginning of the period $ 2,498,269 $ - Fair value at inception - 4,002,723 Change in fair value 6,924,957 (1,504,454) Balance, end of the period $ 9,423,226 $ 2,498,269 (iv) Amortization of Discounts and Interest Expense Three Months Ended Three Months Ended Accretion of the June 2015 Loan discount $ 606,422 $ - Interest expense related to the June 2015 Loan 994,037 - *Interest expense related to Komatsu Financial loans 166,335 13,411 Interest expense related to the convertible debentures - 40,285 Amortization of the convertible debentures - 747,870 Interest expense related to the December 2014 Loan - 311,644 Accretion of debt discount on the convertible debentures - - Interest on Gauss advance - - Accretion of the December 2014 Loan financing fees - 536,729 Accretion of discount and interest on loan and convertible debentures $ 1,766,794 $ 1,649,939 Three Months Ended Three Months Ended Accretion of discounts and interest on loan, advance and convertible debenture $ 1,766,794 $ 1,649,939 Less: Interest costs capitalized (1,005,223) (702,186) Interest expense $ 761,571 $ 947,753 *Komatsu is not a related party and has only been included in the above table to reconcile the total interest expense incurred for the period to the amounts capitalized and expensed. (v) Joint Venture Transaction Variable Interest Entity In accordance with ASC 810-10-30, the Company has determined that GQM LLC meets the definition of a VIE and that the Company is part of a related party group that, in its entirety, would meet the definition of a primary beneficiary. Although no individual variable interest holder individually meets the definition of a primary beneficiary in the absence of the related party group, Golden Queen has determined it is considered the member of the related party group most closely associated with GQM LLC. As a result, the Company has consolidated 100 50 March 31, 2016 December 31, 2015 Assets, GQM LLC $ 156,991,083 $ 158,209,916 Liabilities, GQM LLC (22,081,711) (22,591,211) Net assets, GQM LLC $ 134,909,372 $ 135,618,705 Included in the assets above, is $ 21,319,945 31,531,853 The carrying value of the non-controlling interest is adjusted for net income and loss, distributions and contributions pursuant to ASC 810-10 based on the same percentage allocation used to calculate the initial book value of temporary equity. Three Months Ended Three Months Ended Net loss and comprehensive loss in GQM LLC $ (709,333) $ (573,413) Non-controlling interest percentage 50% 50% Net loss and comprehensive loss attributable to non-controlling interest (354,666) (286,706) Net loss and comprehensive loss attributable to permanent non-controlling interest $ (212,800) $ (172,024) Net loss and comprehensive loss attributable to temporary non-controlling interest $ (141,866) $ (114,682) Permanent Non- Temporary Non- Carrying value of non-controlling interest, December 31, 2014 $ 34,250,468 $ 22,833,645 Capital contribution 7,500,000 5,000,000 Net loss and comprehensive loss for the period (1,064,857) (709,904) Carrying value of non-controlling interest, December 31, 2015 $ 40,685,611 $ 27,123,741 Permanent Non- Temporary Non- Carrying value of non-controlling interest, December 31, 2015 $ 40,685,611 $ 27,123,741 Net loss and comprehensive loss for the period (212,800) (141,866) Carrying value of non-controlling interest, March 31, 2016 $ 40,472,811 $ 26,981,875 |
Derivatives used as Hedging Ins
Derivatives used as Hedging Instruments | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | 8. Derivatives used as Hedging Instruments During the three months ended March 31, 2016, the Company entered into a series of “zero-cost put/call” collar contracts for gold with settlements scheduled between June 30, 2016 and December 30, 2016 with an average floor price of $ 1,100 1,320 For the three months ended March 31, 2016, the Company recorded an unrealized derivative loss of $ 106,268 2016 Gold zero cost collars: Floor amount (ounces) 7,000 Average floor price $ 1,100 Ceiling amount (ounces) 7,000 Average ceiling price $ 1,320 The unrealized fair value of these contracts at March 31, 2016 was $ 106,298 |
Supplementary Disclosures of Ca
Supplementary Disclosures of Cash Flow Information | 3 Months Ended |
Mar. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash Flow, Supplemental Disclosures [Text Block] | 9. Supplementary Disclosures of Cash Flow Information March 31, 2016 March 31, 2015 Cash paid during period for: Interest $ 144,284 $ 260,498 Non-cash financing and investing activities: Common shares issued as part of a management agreement $ - $ 151,428 Change is cash flow estimates related to asset retirement obligations charged to mineral property interests $ 96,696 $ - Mobile equipment acquired through issuance of debt $ 295,125 $ 2,865,983 Property, plant, equipment and mineral interest expenditures included in accounts payable $ 2,311,472 $ 5,521,461 Inventory expenditures included in accounts payable $ 867,505 - Non-cash interest cost capitalized to mineral property interests $ 838,888 $ 702,186 Non-cash amortization of discount and interest expense $ 606,422 $ 934,342 Interest payable converted to principal balance on notes Payable $ 974,986 $ - |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | 10. Financial Instruments Fair Value Measurements All financial assets and financial liabilities are recorded at fair value on initial recognition. Transaction costs are expensed when they are incurred, unless they are directly attributable to the acquisition of qualifying assets, in which case they are added to the costs of those assets until such time as the assets are substantially ready for their intended use or sale. Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; Level 3 Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). March 31, 2016 Total Level 1 Level 2 Level 3 Liabilities: Share purchase warrants (Note 7(iv)) $ 9,423,226 $ - $ 9,423,226 $ - Derivatives Hedging instruments (Note 8) 106,268 - 106,268 - $ 9,529,494 $ - $ 9,529,494 $ - December 31, 2015 Total Level 1 Level 2 Level 3 Liabilities: Share purchase warrants (Note 7(iv)) $ 2,498,269 $ - $ 2,498,269 $ - Under fair value accounting, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The fair value measurement of the financial instruments above use observable inputs in option price models such as the binomial and the Black-Scholes valuation models. Credit Risk Credit risk is the risk that the counterparty to a financial instrument will cause a financial loss for the Company by failing to discharge its obligations. To mitigate exposure to credit risk on financial assets the Company has established policies to ensure liquidity of funds and ensure counterparties demonstrate minimum acceptable credit worthiness. The Company maintains its US Dollar and Canadian Dollar cash in bank accounts with major financial institutions with high credit standings. Cash deposits held in the United States are insured by the FDIC for up to $ 250,000 100,000 Certain United States and Canadian bank accounts held by the Company exceed these federally insured limits or are uninsured as they relate to US Dollar deposits held in Canadian financial institutions. As of March 31, 2016 and December 31, 2015, the Company’s cash balances held in United States and Canadian financial institutions include $ 26,658,270 37,587,311 Interest Rate Risk The interest rates received on these balances may fluctuate with changes in economic conditions. Based on the average cash balances during the three months ended March 31, 2016, a 1 Foreign Currency Exchange Risk Certain purchases of corporate overhead expenditures are denominated in Canadian Dollar. As a result, currency exchange fluctuations may impact the costs of our operations. Specifically, the appreciation of the Canadian Dollar against the US Dollar may result in an increase in the Canadian operating expenses in US dollar terms. As of March 31, 2016, the Company maintained the majority of its cash balance in US Dollar. The Company currently does not engage in any currency hedging activities. Commodity Price Risk The Company’s primary business activity is the development of the open pit, gold and silver, heap leach project on the Project. Decreases in the price of either of these metals from current levels has the potential to negatively impact the future viability of the Project. The Company holds a small portfolio of derivative contracts in the form of gold zero-cost collars in order to hedge against the gold spot price volatility risk. A 10% change in the gold spot price would have a trivial impact on the change in the fair value of the derivative contracts held by the Company. The Company may enter into hedging contracts from time to time to protect the cash flows from commodity price volatility. |
Loss Per Share
Loss Per Share | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | 11. Loss Per Share Three Months Ended Three Months Ended March 31, 2016 March 31, 2015 Numerator: Net loss numerator for basic and diluted EPS $ (8,925,777) $ (1,436,187) Denominator: Denominator for basic and diluted EPS 99,893,341 99,785,350 Basic loss per share (0.09) $ (0.01) For the three months ended March 31, 2016, 1,070,000 750,000 10,000,000 For the three months ended March 31, 2015 the convertible debentures were not included above as their impact would be anti-dilutive. |
Loan Payable
Loan Payable | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | 12. Loan Payable During the three months ended March 31, 2016, the Company acquired (1) one (Three months ended March 31, 2015 (4) four) pieces of mining equipment from Komatsu through financing agreements. March 31, 2016 December 31, 2015 Balance, beginning of period $ 18,372,823 $ 913,132 Additions 352,438 23,155,510 Down payments, taxes and principal repayments (1,287,573) (5,695,819) Balance, end of period $ 17,437,688 $ 18,372,823 March 31, 2016 December 31, 2015 Total acquisition costs $ 24,614,468 $ 24,262,031 Interest rates 0.00% - 4.40% 0.00% - 4.40% Monthly payments $4,669 - $33,906 $4,669 - $33,906 Average remaining life (Years) 3.23 3.46 Short-term portion 5,057,912 4,942,716 Long-term portion $ 12,379,776 $ 13,430,107 For the three months ended March 31, 2016, the Company made total down payments of $ 57,313 574,600 10 Year Principal Payments 2016 $ 3,776,086 2017 $ 5,198,262 2018 $ 5,323,624 2019 $ 3,133,086 2020 $ 6,630 Total $ 17,437,688 |
Comparative Figures
Comparative Figures | 3 Months Ended |
Mar. 31, 2016 | |
Restatement of Prior Year Income [Abstract] | |
Restatement Of Prior Year Income [Text Block] | 13. Comparative Figures Certain comparative figures have been reclassified to conform to the financial statement presentation adopted for the current year. The reclassifications had no impact on the net loss, comprehensive loss, deficit accumulated or the cash flows as previously reported. Also see Note 15 for restatement of certain 2015 balances. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 14. Subsequent Events On April 1st, 2016, the Company was to make the quarterly interest payment on the June 2015 loan. In accordance with the terms of the June 2015 loan agreement, the Company chose to exercise its right to add the interest owed on April 1st, 2016 to the principal balance. The principal balance of the loan was increased by $ 988,696 |
Prior Periods Financial Restate
Prior Periods Financial Restatements | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Changes and Error Corrections [Text Block] | 15. Prior Periods Financial Restatements During the preparation of the deferred tax calculations for 2015 the Company found an accounting error in the calculation of the deferred income taxes for the year ended December 31, 2014. The accounting error related to the recognition of a deferred tax liability resulting from the dilution gain recorded in additional paid-in capital from the JV transaction (Note 7(vi)). The impact of the error on the financial statements for the three months ended March 31, 2015 are presented below. There was no impact on the Company’s Consolidated Statements of Loss and Comprehensive Loss or the Consolidated Statement of Cash Flows. March 31, 2015 As Previously Reported As Restated Liabilities: Deferred tax liability $ - $ 12,922,000 Total liabilities $ 31,358,690 $ 44,280,690 Shareholders’ Equity: Additional paid-in capital $ 56,390,510 $ 43,468,510 Total shareholders’ equity attributable to GQM Ltd. $ 43,369,950 $ 30,447,950 Total shareholders’ equity $ 77,448,394 $ 64,526,394 |
Business Description and Acco23
Business Description and Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Nature of Business [Policy Text Block] | Golden Queen Mining Co. Ltd. (“Golden Queen”, “GQM Ltd.” or the “Company”) is engaged in the development of the Soledad Mountain Project (“the Project”), located in the Mojave Mining District, Kern County, California. The construction phase of the Project was completed in February 2016 and the Company commenced production in March 2016. The Company originally used its wholly owned subsidiary, Golden Queen Mining Company, Inc. (“GQM Inc.”), to explore and develop the Project. On September 10, 2014, GQM Inc. was converted to a limited liability company, Golden Queen Mining Company, LLC (“GQM LLC”). The Company entered into a Joint Venture (the “JV”) agreement with Gauss LLC (“Gauss”) through its newly formed, wholly owned subsidiary, Golden Queen Mining Holdings, Inc. (“GQM Holdings”). The JV was completed on September 15, 2014. Upon completion of the JV, both the Company, through GQM Holdings, and Gauss each owned, and continue to own, 50 |
Basis of Accounting, Policy [Policy Text Block] | Basis of Preparation These unaudited condensed consolidated interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The accounting policies followed in preparing these condensed consolidated interim financial statements are those used by the Company as set out in the audited consolidated financial statements for the year ended December 31, 2015. Certain information and note disclosures normally included for annual consolidated financial statements prepared in accordance with U.S. GAAP have been omitted. These condensed consolidated interim financial statements should be read together with the audited consolidated financial statements of the Company for the year ended December 31, 2015. In the opinion of management, all adjustments considered necessary (including reclassifications and normal recurring adjustments) to present fairly the financial position, results of operations and cash flows at March 31, 2016 and for all periods presented, have been included in these financial statements. The interim results are not necessarily indicative of results for the full year ending December 31, 2016, or future operating periods. For further information, see the Company’s annual consolidated financial statements, including the accounting policies and notes thereto. |
Use of Estimates, Policy [Policy Text Block] | Judgements and Estimates The preparation of financial statements in conformity with GAAP requires management to make judgements, estimates, and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates and judgements have been made by Management in several areas including the accounting for the joint venture transaction and determination of temporary and permanent non-controlling interest, the recoverability of mineral properties expenditures, royalty obligations, inventory valuations, ore on heap leach pads, asset retirement obligations, convertible debentures, and derivative liability warrants. A key judgement for 2016 relates to when the Soledad Mountain mine enters the production phase. Generally, under US GAAP a mine would be considered to be in the production phase once it has demonstrated that it is producing saleable quantities of product. As at March 31, 2016, the Soledad Mountain mine is not considered to have entered the production phase. |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The Company consolidates all entities in which it can vote a majority of the outstanding voting stock. In addition, it consolidates entities which meet the definition of a variable interest entity for which it is the primary beneficiary. The primary beneficiary is the party who has the power to direct the activities of a variable interest entity that most significantly impact the entity’s economic performance and who has an obligation to absorb losses of the entity or a right to receive benefits from the entity that could potentially be significant to the entity. We consider special allocations of cash flows and preferences, if any, to determine amounts allocable to non-controlling interests. All intercompany transactions and balances are eliminated in consolidation. These condensed consolidated interim financial statements include the accounts of Golden Queen, a British Columbia corporation, its wholly-owned subsidiaries, GQM Canada, GQM Holdings, a US (State of California) corporation, and GQM LLC, a limited liability company in which Golden Queen has a 50 |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Standards (i) Effective August 2014, FASB issued Accounting Standards update (“ASU”) 2014-15, Presentation of Financial Statements Going Concern (Subtopic 205-40 Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. The update essentially requires management of all entities, for annual and interim periods, to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date the financial statements are issued. If conditions or events raise substantial doubt about an entity’s ability to continue as a going concern, but the substantial doubt is alleviated as a result of consideration of management’s plans, the entity should disclose information that enables users of the financial statements to understand all of the following: 1. Principal conditions or events that raised substantial doubt about the entity’s ability to continue as a going concern (before consideration of management’s plans). 2. Management’s evaluation of the significance of those conditions or events in relation to the entity’s ability to meet its obligations. 3. Management’s plans that alleviated substantial doubt about the entity’s ability to continue as a going concern. If conditions or events raise substantial doubt about an entity’s ability to continue as a going concern, and substantial doubt is not alleviated after consideration of management’s plans, an entity should include a statement in the footnotes indicating that there is substantial doubt about the entity’s ability to continue as a going concern This update will come into effect for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. The Company is assessing the impact of this standard. (ii) In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810) Amendments to the Consolidation Analysis ⋅ Placing more emphasis on risk of loss when determining a controlling financial interest. A reporting organization may no longer have to consolidate a legal entity in certain circumstances based solely on its fee arrangement, when certain criteria are met. ⋅ Reducing the frequency of the application of related-party guidance when determining a controlling financial interest in a variable interest entity (VIE). ⋅ Changing consolidation conclusions for public and private companies in several industries that typically make use of limited partnerships or VIEs. The ASU will be effective for periods beginning after December 15, 2015, for public companies. Early adoption is permitted, including adoption in an interim period. The Company adopted the ASU effective January 1, 2016. The Company assessed and concluded there was no impact on the Company with the adoption of the new standard. (iii) In January 2016, FASB issued ASU 2016-01, Financial Instruments Recognition and measurement of financial assets and financial liabilities (Subtopic 825-10) which updates several aspects of recognition, measurement, presentation and disclosure of financial instruments. The amendments that are relevant to the Company are as follows: 1. Eliminate the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet. 2. Require public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. 3. Require separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements. The ASU will be effective for periods beginning after December 15, 2017, for public companies. The Company is assessing the impact of this standard. (iv) In March 2016, FASB issued ASU 2016-09, Compensation Stock Compensation (Subtopic 718) which updates several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The ASU will be effective for periods beginning after December 15, 2016, for public companies. The Company is assessing the impact of this standard. |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Inventory, Net [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | March 31, 2016 December 31, 2015 Stockpile inventory $ 1,018,603 $ 1,259,669 Dore inventory 255,527 - Supplies and spare parts 1,122,325 592,690 $ 2,396,455 $ 1,852,359 Ore on heap leach pad: Current $ 2,027,588 83,240 |
Property, Plant, Equipment an25
Property, Plant, Equipment and Mineral Interests (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | March 31, 2016 December 31, 2015 Land $ 3,895,681 $ 109,600 Mineral property interest and claims 1,896,239 4,458,744 Mine development 38,274,609 86,038,407 Mine equipment 55,855,709 25,425,661 Buildings 17,010,959 5,691,335 Computer equipment and software 304,582 51,030 Vehicles 1,956,586 218,822 Infrastructure (Water/power) 10,905,711 978,573 Asset retirement costs 723,574 626,878 Capitalized interest 6,180,069 5,174,846 Less: Accumulated depreciation, depletion and amortization expensed (218,063) (211,324) $ 136,785,656 $ 128,562,572 |
Share Capital (Tables)
Share Capital (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | The following is a summary of stock option activity during the three months ended March 31, 2016 and 2015: Shares Weighted Options outstanding and exercisable, December 31, 2014 750,000 $ 1.29 Options issued 570,000 $ 0.58 Options forfeited (250,000) $ 1.18 Options outstanding, December 31, 2015 1,070,000 $ 0.94 Options exercisable, December 31, 2015 976,667 $ 0.97 Options outstanding, March 31, 2016 1,070,000 $ 0.94 Options exercisable, March 31, 2016 976,667 $ 0.97 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Table Text Block] | The following table summarizes information about stock options outstanding and exercisable at March 31, 2016: Expiry Number Number Remaining Exercise June 3, 2018 50,000 50,000 2.18 $ 1.16 September 3, 2018 150,000 150,000 2.43 $ 1.59 September 18, 2018 300,000 300,000 2.47 $ 1.26 September 8, 2020 570,000 476,667 4.44 $ 0.58 Balance, March 31, 2016 1,070,000 976,667 3.50 |
Asset Retirement Obligations 27
Asset Retirement Obligations and Financial Reclamation Assurance (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Change in Asset Retirement Obligation [Table Text Block] | March 31, 2016 December 31, 2015 Balance, beginning of the period $ 978,453 $ 624,142 Changes in cash flow estimates 96,696 278,240 Balance, end of the period $ 1,075,149 $ 978,453 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Related Party Transaction [Line Items] | |
Schedule of Debt [Table Text Block] | As such, as of March 31, 2016, no accrual has been made for the potential costs related to the registration rights. March 31, 2016 December 31, 2015 Balance, beginning of the period $ 36,053,012 $ 13,881,305 Accretion of discount on the June 2015 Loan 606,422 1,374,228 Interest payable transferred to principal balance of the June 2015 Loan 974,986 1,181,507 Fair value at inception, notes payable - 33,497,277 Repayment of loans - (2,500,000) Accretion of financing and legal fees - 967,156 Extinguishment of the December 2014 Loan - (12,500,000) Loss on extinguishment of debt - 151,539 Balance, end of the period $ 37,634,420 $ 36,053,012 |
Schedule Of Amortization Of Discounts And Interest On Loans And Convertible Debentures [Table Text Block] | The following table summarizes the amortization of discounts and interest on loans and convertible debentures: Three Months Ended Three Months Ended Accretion of the June 2015 Loan discount $ 606,422 $ - Interest expense related to the June 2015 Loan 994,037 - *Interest expense related to Komatsu Financial loans 166,335 13,411 Interest expense related to the convertible debentures - 40,285 Amortization of the convertible debentures - 747,870 Interest expense related to the December 2014 Loan - 311,644 Accretion of debt discount on the convertible debentures - - Interest on Gauss advance - - Accretion of the December 2014 Loan financing fees - 536,729 Accretion of discount and interest on loan and convertible debentures $ 1,766,794 $ 1,649,939 |
Schedule Of Amortization Of Discount And Interest Expense [Table Text Block] | The Company capitalizes a portion of the interest expense as it related to funds borrowed to complete development activities at the Project site. Three Months Ended Three Months Ended Accretion of discounts and interest on loan, advance and convertible debenture $ 1,766,794 $ 1,649,939 Less: Interest costs capitalized (1,005,223) (702,186) Interest expense $ 761,571 $ 947,753 |
Schedule of Variable Interest Entities [Table Text Block] | The net assets of GQM LLC as of March 31, 2016 and December 31, 2015 are as follows: March 31, 2016 December 31, 2015 Assets, GQM LLC $ 156,991,083 $ 158,209,916 Liabilities, GQM LLC (22,081,711) (22,591,211) Net assets, GQM LLC $ 134,909,372 $ 135,618,705 |
Schedule of Comprehensive Income Net of Tax Attributable To Noncontrolling Interest [Table Text Block] | Non-Controlling Interest The carrying value of the non-controlling interest is adjusted for net income and loss, distributions and contributions pursuant to ASC 810-10 based on the same percentage allocation used to calculate the initial book value of temporary equity. Three Months Ended Three Months Ended Net loss and comprehensive loss in GQM LLC $ (709,333) $ (573,413) Non-controlling interest percentage 50% 50% Net loss and comprehensive loss attributable to non-controlling interest (354,666) (286,706) Net loss and comprehensive loss attributable to permanent non-controlling interest $ (212,800) $ (172,024) Net loss and comprehensive loss attributable to temporary non-controlling interest $ (141,866) $ (114,682) |
Schedule Of Non-controlling Interest [Table Text Block] | Permanent Non- Temporary Non- Carrying value of non-controlling interest, December 31, 2014 $ 34,250,468 $ 22,833,645 Capital contribution 7,500,000 5,000,000 Net loss and comprehensive loss for the period (1,064,857) (709,904) Carrying value of non-controlling interest, December 31, 2015 $ 40,685,611 $ 27,123,741 Permanent Non- Temporary Non- Carrying value of non-controlling interest, December 31, 2015 $ 40,685,611 $ 27,123,741 Net loss and comprehensive loss for the period (212,800) (141,866) Carrying value of non-controlling interest, March 31, 2016 $ 40,472,811 $ 26,981,875 |
Share Purchase Warrants [Member] | |
Related Party Transaction [Line Items] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block] | The derivative liability was calculated using an acceptable option pricing valuation model with the following assumptions: 2016 2015 Risk-free interest rate 0.68% 0.73% - 1.02% Expected life of derivative liability 4.19 years 4.44 - 5 years Expected volatility 79.45% 72.29% - 76.11% Dividend rate 0.00% 0.00% |
Schedule of Derivative Liabilities at Fair Value [Table Text Block] | The change in the derivative share purchase warrants is as follows: March 31, 2016 December 31, 2015 Balance, beginning of the period $ 2,498,269 $ - Fair value at inception - 4,002,723 Change in fair value 6,924,957 (1,504,454) Balance, end of the period $ 9,423,226 $ 2,498,269 |
Derivatives used as Hedging I29
Derivatives used as Hedging Instruments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments [Table Text Block] | The following is a summary, by maturity dates, of the Company’s gold collar contracts outstanding as at March 31, 2016: 2016 Gold zero cost collars: Floor amount (ounces) 7,000 Average floor price $ 1,100 Ceiling amount (ounces) 7,000 Average ceiling price $ 1,320 |
Supplementary Disclosures of 30
Supplementary Disclosures of Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | March 31, 2016 March 31, 2015 Cash paid during period for: Interest $ 144,284 $ 260,498 Non-cash financing and investing activities: Common shares issued as part of a management agreement $ - $ 151,428 Change is cash flow estimates related to asset retirement obligations charged to mineral property interests $ 96,696 $ - Mobile equipment acquired through issuance of debt $ 295,125 $ 2,865,983 Property, plant, equipment and mineral interest expenditures included in accounts payable $ 2,311,472 $ 5,521,461 Inventory expenditures included in accounts payable $ 867,505 - Non-cash interest cost capitalized to mineral property interests $ 838,888 $ 702,186 Non-cash amortization of discount and interest expense $ 606,422 $ 934,342 Interest payable converted to principal balance on notes Payable $ 974,986 $ - |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping [Table Text Block] | The three levels of the fair value hierarchy are as follows: Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; Level 3 Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). March 31, 2016 Total Level 1 Level 2 Level 3 Liabilities: Share purchase warrants (Note 7(iv)) $ 9,423,226 $ - $ 9,423,226 $ - Derivatives Hedging instruments (Note 8) 106,268 - 106,268 - $ 9,529,494 $ - $ 9,529,494 $ - December 31, 2015 Total Level 1 Level 2 Level 3 Liabilities: Share purchase warrants (Note 7(iv)) $ 2,498,269 $ - $ 2,498,269 $ - |
Loss Per Share (Tables)
Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended Three Months Ended March 31, 2016 March 31, 2015 Numerator: Net loss numerator for basic and diluted EPS $ (8,925,777) $ (1,436,187) Denominator: Denominator for basic and diluted EPS 99,893,341 99,785,350 Basic loss per share (0.09) $ (0.01) |
Loan Payable (Tables)
Loan Payable (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule Of Loans Payable [Table Text Block] | As at March 31, 2016 and December 31, 2015, the finance agreement balances are as follows: March 31, 2016 December 31, 2015 Balance, beginning of period $ 18,372,823 $ 913,132 Additions 352,438 23,155,510 Down payments, taxes and principal repayments (1,287,573) (5,695,819) Balance, end of period $ 17,437,688 $ 18,372,823 |
Schedule of Long-term Debt Instruments [Table Text Block] | The terms of the financing agreements are as follows: March 31, 2016 December 31, 2015 Total acquisition costs $ 24,614,468 $ 24,262,031 Interest rates 0.00% - 4.40% 0.00% - 4.40% Monthly payments $4,669 - $33,906 $4,669 - $33,906 Average remaining life (Years) 3.23 3.46 Short-term portion 5,057,912 4,942,716 Long-term portion $ 12,379,776 $ 13,430,107 |
Schedule of Maturities of Long-term Debt [Table Text Block] | The following table outlines the principal payments to be made for each of the remaining years: Year Principal Payments 2016 $ 3,776,086 2017 $ 5,198,262 2018 $ 5,323,624 2019 $ 3,133,086 2020 $ 6,630 Total $ 17,437,688 |
Prior Periods Financial Resta34
Prior Periods Financial Restatements (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments [Table Text Block] | Impact for the three months ended March 31, 2015: March 31, 2015 As Previously Reported As Restated Liabilities: Deferred tax liability $ - $ 12,922,000 Total liabilities $ 31,358,690 $ 44,280,690 Shareholders’ Equity: Additional paid-in capital $ 56,390,510 $ 43,468,510 Total shareholders’ equity attributable to GQM Ltd. $ 43,369,950 $ 30,447,950 Total shareholders’ equity $ 77,448,394 $ 64,526,394 |
Business Description and Acco35
Business Description and Accounting Policies (Details Textual) | Mar. 31, 2016 | Mar. 31, 2015 |
Golden Queen Mining Holdings, Inc [Member] | ||
Noncontrolling Interest, Ownership Percentage by Parent | 50.00% | 50.00% |
Gauss LLC [Member] | ||
Noncontrolling Interest, Ownership Percentage by Parent | 50.00% | 50.00% |
Ability to Continue as a Goin36
Ability to Continue as a Going Concern (Details Textual) - USD ($) | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Working Capital | $ (25,294,090) | ||
Retained Earnings (Accumulated Deficit), Total | (88,831,798) | $ (79,906,021) | |
Other Loans Payable, Long-term, Noncurrent | 37,500,000 | ||
Net Cash Provided by (Used in) Operating Activities, Continuing Operations, Total | $ (3,200,159) | $ (1,351,647) |
Inventory (Details)
Inventory (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Inventory [Line Items] | ||
Stockpile inventory | $ 1,018,603 | $ 1,259,669 |
Dore inventory | 255,527 | 0 |
Supplies and spare parts | 1,122,325 | 592,690 |
Inventory, Net, Total | 2,396,455 | 1,852,359 |
Ore on heap leach pad: Current | $ 2,027,588 | $ 83,240 |
Property, Plant, Equipment an38
Property, Plant, Equipment and Mineral Interests (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Land | $ 3,895,681 | $ 109,600 |
Mineral property interest and claims | 1,896,239 | 4,458,744 |
Mine development | 38,274,609 | 86,038,407 |
Mine equipment | 55,855,709 | 25,425,661 |
Buildings | 17,010,959 | 5,691,335 |
Computer equipment and software | 304,582 | 51,030 |
Vehicles | 1,956,586 | 218,822 |
Infrastructure (Water/power) | 10,905,711 | 978,573 |
Asset retirement costs | 723,574 | 626,878 |
Capitalized interest | 6,180,069 | 5,174,846 |
Less: Accumulated depreciation, depletion and amortization expensed | (218,063) | (211,324) |
Property Plant Equipment and Mineral Properties Net | $ 136,785,656 | $ 128,562,572 |
Property, Plant, Equipment an39
Property, Plant, Equipment and Mineral Interests (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation, Total | $ 3,777,949 | $ 1,850,403 |
Share Capital (Details)
Share Capital (Details) - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options outstanding, | 1,070,000 | |
Options exercisable | 976,667 | |
Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options outstanding, | 1,070,000 | 750,000 |
Options issued | 570,000 | |
Options forfeited | (250,000) | |
Options outstanding, | 1,070,000 | 1,070,000 |
Options exercisable | 976,667 | 976,667 |
Weighted Average Exercise Price Per Share, Options outstanding | $ 0.94 | $ 1.29 |
Weighted Average Exercise Price Per Share, Options issued | 0.58 | |
Weighted Average Exercise Price Per Share, Options forfeited | 1.18 | |
Weighted Average Exercise Price Per Share, Options outstanding | $ 0.94 | 0.94 |
Weighted Average Exercise Price Per Share, Options exercisable | $ 0.97 | $ 0.97 |
Share Capital (Details 1)
Share Capital (Details 1) | 3 Months Ended |
Mar. 31, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number Outstanding | 1,070,000 |
Number Exercisable | 976,667 |
Remaining Contractual Life (Years) | 3 years 6 months |
June 3, 2018 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number Outstanding | 50,000 |
Number Exercisable | 50,000 |
Remaining Contractual Life (Years) | 2 years 2 months 5 days |
Exercise Price | $ / shares | $ 1.16 |
September 3, 2018 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number Outstanding | 150,000 |
Number Exercisable | 150,000 |
Remaining Contractual Life (Years) | 2 years 5 months 5 days |
Exercise Price | $ / shares | $ 1.59 |
September 18, 2018 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number Outstanding | 300,000 |
Number Exercisable | 300,000 |
Remaining Contractual Life (Years) | 2 years 5 months 19 days |
Exercise Price | $ / shares | $ 1.26 |
September 8, 2020 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number Outstanding | 570,000 |
Number Exercisable | 476,667 |
Remaining Contractual Life (Years) | 4 years 5 months 8 days |
Exercise Price | $ / shares | $ 0.58 |
Share Capital (Details Textual)
Share Capital (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock Issued During Period, Value, Issued for Services | $ 151,428 | |||
Share-based Compensation, Total | $ 3,799 | $ 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value | $ 521,217 | $ 0 | ||
President [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock Issued During Period, Shares, Issued for Services | 150,000 | |||
Stock Issued During Period, Value, Issued for Services | $ 151,428 |
Asset Retirement Obligations 43
Asset Retirement Obligations and Financial Reclamation Assurance (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Asset Retirement Obligations [Line Items] | ||
Balance, beginning of the period | $ 978,453 | $ 624,142 |
Changes in cash flow estimates | 96,696 | 278,240 |
Balance, end of the period | $ 1,075,149 | $ 978,453 |
Asset Retirement Obligations 44
Asset Retirement Obligations and Financial Reclamation Assurance (Details Textual) - USD ($) | 3 Months Ended | ||||
Mar. 31, 2016 | Mar. 31, 2015 | Jan. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Asset Retirement Obligations [Line Items] | |||||
Asset Retirement Obligation | $ 1,075,149 | $ 978,453 | $ 624,142 | ||
Asset Retirement Obligation, Credit Adjusted Risk Free Rate | 9.20% | 9.20% | |||
Asset Retirement Obligation, Inflation Rate | 2.27% | 2.27% | |||
Asset Retirement Obligation, Accretion Expense | $ 96,696 | $ 0 | |||
Surety Bond [Member] | |||||
Asset Retirement Obligations [Line Items] | |||||
Guarantor Obligations, Current Carrying Value | $ 2,100,000 | ||||
Bureau of Land Management [Member] | |||||
Asset Retirement Obligations [Line Items] | |||||
Security Deposit | 624,142 | $ 624,142 | |||
Lahontan Regional Water Quality Control Board [Member] | |||||
Asset Retirement Obligations [Line Items] | |||||
Security Deposit | 1,210,889 | 0 | |||
Regional Board [Member] | |||||
Asset Retirement Obligations [Line Items] | |||||
Security Deposit | $ 278,240 | $ 278,240 |
Commitments and Contingencies (
Commitments and Contingencies (Details Textual) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Commitments And Contingencies [Line Items] | ||
Advance Minimum Royalty Payments | $ 2,500 | $ 10,000 |
Other Commitment, Total | 2,000,000 | |
Property Rent Payments [Member] | ||
Commitments And Contingencies [Line Items] | ||
Advance Minimum Royalty Payments | $ 75,000 | |
Finder Fee [Member] | ||
Commitments And Contingencies [Line Items] | ||
Stock Issued During Period, Shares, Acquisitions | 100,000 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | ||
Balance, beginning of the period | $ 36,053,012 | $ 13,881,305 |
Accretion of discount on the June 2015 Loan | 606,422 | 1,374,228 |
Interest payable transferred to principal balance of the June 2015 Loan | 974,986 | 1,181,507 |
Fair value at inception, notes payable | 0 | 33,497,277 |
Repayment of loans | 0 | (2,500,000) |
Accretion of financing and legal fees | 0 | 967,156 |
Extinguishment of the December 2014 Loan | 0 | (12,500,000) |
Loss on extinguishment of debt | 0 | 151,539 |
Balance, end of the period | $ 37,634,420 | $ 36,053,012 |
Related Party Transactions (D47
Related Party Transactions (Details 1) - Share Purchase Warrants [Member] | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | ||
Risk-free interest rate | 0.68% | |
Expected life of derivative liability | 4 years 2 months 8 days | |
Expected volatility | 79.45% | |
Dividend rate | 0.00% | 0.00% |
Minimum [Member] | ||
Related Party Transaction [Line Items] | ||
Risk-free interest rate | 0.73% | |
Expected life of derivative liability | 4 years 5 months 8 days | |
Expected volatility | 72.29% | |
Maximum [Member] | ||
Related Party Transaction [Line Items] | ||
Risk-free interest rate | 1.02% | |
Expected life of derivative liability | 5 years | |
Expected volatility | 76.11% |
Related Party Transactions (D48
Related Party Transactions (Details 2) - Share Purchase Warrants [Member] - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | ||
Balance, beginning of the period | $ 2,498,269 | $ 0 |
Fair value at inception | 0 | 4,002,723 |
Change in fair value | 6,924,957 | (1,504,454) |
Balance, end of the period | $ 9,423,226 | $ 2,498,269 |
Related Party Transactions (D49
Related Party Transactions (Details 3) - USD ($) | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Related Party Transaction [Line Items] | |||
Accretion of the June 2015 Loan discount | $ 606,422 | $ 0 | |
Interest expense related to the June 2015 Loan | 994,037 | 0 | |
Interest expense related to Komatsu Financial loans | [1] | 166,335 | 13,411 |
Interest expense related to the convertible debentures | 0 | 40,285 | |
Amortization of the convertible debentures | 0 | 747,870 | |
Interest expense related to the December 2014 Loan | 0 | 311,644 | |
Accretion of debt discount on the convertible debentures | 0 | 0 | |
Interest on Gauss advance | 0 | 0 | |
Accretion of the December 2014 Loan financing fees | 0 | 536,729 | |
Accretion of discount and interest on loan and convertible debentures | $ 1,766,794 | $ 1,649,939 | |
[1] | Komatsu is not a related party and has only been included in the above table to reconcile the total interest expense incurred for the period to the amounts capitalized and expensed. |
Related Party Transactions (D50
Related Party Transactions (Details 4) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Related Party Transaction [Line Items] | ||
Accretion of discounts and interest on loan, advance and convertible debenture | $ 1,766,794 | $ 1,649,939 |
Less: Interest costs capitalized | (1,005,223) | (702,186) |
Interest expense | $ 761,571 | $ 947,753 |
Related Party Transactions (D51
Related Party Transactions (Details 5) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Related Party Transaction [Line Items] | ||
Assets, GQM LLC | $ 156,991,083 | $ 158,209,916 |
Liabilities, GQM LLC | (22,081,711) | (22,591,211) |
Net assets, GQM LLC | $ 134,909,372 | $ 135,618,705 |
Related Party Transactions (D52
Related Party Transactions (Details 6) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Subsidiaries [Member] | |||
Related Party Transaction [Line Items] | |||
Net and comprehensive loss | $ (709,333) | $ (573,413) | |
Non-controlling interest percentage | 50.00% | 50.00% | |
Gauss LLC [Member] | |||
Related Party Transaction [Line Items] | |||
Net and comprehensive loss | $ (354,666) | $ (286,706) | |
Permanent Non-controlling Interest [Member] | Gauss LLC [Member] | |||
Related Party Transaction [Line Items] | |||
Net and comprehensive loss | (212,800) | (172,024) | $ (1,064,857) |
Temporary Non-controlling Interest [Member] | Gauss LLC [Member] | |||
Related Party Transaction [Line Items] | |||
Net and comprehensive loss | $ (141,866) | $ (114,682) | $ (709,904) |
Related Party Transactions (D53
Related Party Transactions (Details 7) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | |||
Carrying value of non-controlling interest | $ 40,685,611 | ||
Capital contribution | $ 7,500,000 | ||
Carrying value of non-controlling interest | 40,472,811 | 40,685,611 | |
Gauss LLC [Member] | |||
Related Party Transaction [Line Items] | |||
Net and comprehensive loss for the period | (354,666) | $ (286,706) | |
Gauss LLC [Member] | Permanent Non-controlling Interest [Member] | |||
Related Party Transaction [Line Items] | |||
Carrying value of non-controlling interest | 40,685,611 | 34,250,468 | 34,250,468 |
Capital contribution | 7,500,000 | ||
Net and comprehensive loss for the period | (212,800) | (172,024) | (1,064,857) |
Carrying value of non-controlling interest | 40,472,811 | 40,685,611 | |
Gauss LLC [Member] | Temporary Non-controlling Interest [Member] | |||
Related Party Transaction [Line Items] | |||
Carrying value of non-controlling interest | 27,123,741 | 22,833,645 | 22,833,645 |
Capital contribution | 5,000,000 | ||
Net and comprehensive loss for the period | (141,866) | $ (114,682) | (709,904) |
Carrying value of non-controlling interest | $ 26,981,875 | $ 27,123,741 |
Related Party Transactions (D54
Related Party Transactions (Details Textual) - USD ($) | Jun. 08, 2015 | Jan. 05, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Jan. 02, 2014 |
Related Party Transaction [Line Items] | |||||||
Consulting Fees | $ 151,428 | ||||||
Noninterest Expense Directors Fees | $ 28,535 | $ 18,438 | |||||
Legal Fees | $ 118,695 | ||||||
Debt Instrument, Maturity Date | Dec. 8, 2016 | ||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 10,000,000 | ||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.95 | ||||||
Derivative Liability | 106,298 | $ 0 | |||||
Warrant Expiration Date | Jun. 8, 2020 | ||||||
Interest Payable, Current | 988,696 | 969,645 | |||||
January 2014 Loan [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Additional Charge Percentage | 5.00% | ||||||
Additional Charge Paid | $ 125,000 | 375,000 | |||||
Repayments of Lines of Credit | 2,500,000 | 7,500,000 | |||||
Interest Paid, Total | 125,000 | 375,000 | |||||
December 2014 Loan [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Legal Fees | 90,916 | ||||||
Debt Issuance Cost | 1,000,000 | ||||||
Payments of Debt Issuance Costs | $ 250,000 | $ 750,000 | |||||
June 2015 Loan [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Legal Fees | $ 46,408 | ||||||
Debt Issuance Cost | $ 1,500,000 | ||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 10,000,000 | ||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.95 | ||||||
Warrant Expiration Date | Jun. 8, 2020 | ||||||
Mr. H. Lutz Klingmann [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Stock Issued During Period, Shares, New Issues | 150,000 | ||||||
Thomas M. Clay [Member] | January 2014 Loan [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | ||||||
Common Stock, Shares Subscribed but Unissued | 7,500,000 | ||||||
Minimum [Member] | June 2015 Loan [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Notes and Loans Payable, Total | $ 12,500,000 | ||||||
Maximum [Member] | June 2015 Loan [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Notes and Loans Payable, Total | $ 37,500,000 | ||||||
President [Member] | Mr. H. Lutz Klingmann [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Payments for Fees | $ 188,934 | ||||||
Director [Member] | Thomas M. Clay [Member] | January 2014 Loan [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | ||||||
Notes and Loans Payable, Total | $ 10,000,000 | ||||||
Director [Member] | Thomas M. Clay [Member] | December 2014 Loan [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | ||||||
Debt Instrument, Maturity Date | Jul. 1, 2015 | ||||||
Short-term Debt | $ 12,500,000 | ||||||
Joint Venture Transaction [Member] | Cash [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Restricted Cash and Cash Equivalents | 21,319,945 | 31,531,853 | |||||
Share Purchase Warants [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Derivative Liability | $ 9,423,226 | $ 2,498,269 | |||||
GQM LLC [Member] | December 2014 Loan [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Equity Method Investment, Ownership Percentage | 50.00% | ||||||
GQM LLC [Member] | Joint Venture Transaction [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 100.00% | ||||||
Gauss Holdings LLC [Member] | Joint Venture Transaction [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 50.00% |
Derivatives used as Hedging I55
Derivatives used as Hedging Instruments (Details) | Mar. 31, 2016$ / oz |
Gold zero cost collars: | |
Floor amount (ounces) | 7,000 |
Average floor price | 1,100 |
Ceiling amount (ounces) | 7,000 |
Average ceiling price | 1,320 |
Derivatives used as Hedging I56
Derivatives used as Hedging Instruments (Details Textual) | 3 Months Ended | ||
Mar. 31, 2016USD ($)$ / oz | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($) | |
Derivative [Line Items] | |||
Derivative, Average Floor Price | $ / oz | 1,100 | ||
Derivative, Average Cap Price | $ / oz | 1,320 | ||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | $ | $ 106,268 | $ 0 | |
Derivative Liability | $ | $ 106,298 | $ 0 |
Supplementary Disclosures of 57
Supplementary Disclosures of Cash Flow Information (Details) - Mining Properties and Mineral Rights [Member] - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash paid during year for: | ||
Interest | $ 144,284 | $ 260,498 |
Non-cash financing and investing activities: | ||
Common shares issued as part of a management agreement | 0 | 151,428 |
Change is cash flow estimates related to asset retirement obligations charged to mineral property interests | 96,696 | 0 |
Mobile equipment acquired through issuance of debt | 295,125 | 2,865,983 |
Property, plant, equipment and mineral interests expenditures included in accounts payable | 2,311,472 | 5,521,461 |
Inventory expenditures included in accounts payable | 867,505 | 0 |
Non-cash interest cost capitalized to mineral property interests | 838,888 | 702,186 |
Non-cash amortization of discount and interest expense | 606,422 | 934,342 |
Interest payable converted to principal balance on notes payable | $ 974,986 | $ 0 |
Financial Instruments (Details)
Financial Instruments (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Liabilities Fair Value Disclosure | $ 9,529,494 | |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Liabilities Fair Value Disclosure | 0 | |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Liabilities Fair Value Disclosure | 9,529,494 | |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Liabilities Fair Value Disclosure | 0 | |
Derivative Liability [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Liabilities Fair Value Disclosure | 106,268 | |
Derivative Liability [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Liabilities Fair Value Disclosure | 0 | |
Derivative Liability [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Liabilities Fair Value Disclosure | 106,268 | |
Derivative Liability [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Liabilities Fair Value Disclosure | 0 | |
Share Purchase Warrants [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Liabilities Fair Value Disclosure | 9,423,226 | $ 2,498,269 |
Share Purchase Warrants [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Liabilities Fair Value Disclosure | 0 | 0 |
Share Purchase Warrants [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Liabilities Fair Value Disclosure | 9,423,226 | 2,498,269 |
Share Purchase Warrants [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Liabilities Fair Value Disclosure | $ 0 | $ 0 |
Financial Instruments (Details
Financial Instruments (Details Textual) | 3 Months Ended | ||
Mar. 31, 2016USD ($) | Mar. 31, 2016CAD | Dec. 31, 2015USD ($) | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash | $ 26,658,270 | $ 37,587,311 | |
Financial Instruments Disclosure 6 | 1.00% | ||
Federal Deposit Insurance Corporation [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash, FDIC Insured Amount | $ 250,000 | ||
Canada Deposit Insurance Corporation [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Deposits, Total | CAD | CAD 100,000 |
Loss Per Share (Details)
Loss Per Share (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Numerator: | ||
Net income (loss) - numerator for basic EPS | $ (8,925,777) | $ (1,436,187) |
Denominator: | ||
Denominator for basic and diluted EPS (in shares) | 99,893,341 | 99,785,350 |
Effect of dilutive securities: | ||
Basic loss per share (in dollars per share) | $ (0.09) | $ (0.01) |
Loss Per Share (Details Textual
Loss Per Share (Details Textual) - shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | |
Employee Stock Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,070,000 | 750,000 |
Warrant [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 10,000,000 |
Loan Payable (Details)
Loan Payable (Details) - Mining Equipment [Member] - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Balance, beginning of period | $ 18,372,823 | $ 913,132 |
Additions | 352,438 | 23,155,510 |
Down payments, taxes and principal repayments | (1,287,573) | (5,695,819) |
Balance, end of period | $ 17,437,688 | $ 18,372,823 |
Loan Payable (Details 1)
Loan Payable (Details 1) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Short-term portion | $ 5,057,912 | $ 4,942,716 |
Long-term portion | 12,379,776 | 13,430,107 |
Komatsu financing agreements [Member] | Loans Payable [Member] | ||
Total acquisition costs | $ 24,614,468 | $ 24,262,031 |
Average remaining life (Years) | 3 years 2 months 23 days | 3 years 5 months 16 days |
Short-term portion | $ 5,057,912 | $ 4,942,716 |
Long-term portion | $ 12,379,776 | $ 13,430,107 |
Komatsu Mobile Mining Equipment [Member] | Loans Payable [Member] | Minimum [Member] | ||
Interest rates | 0.00% | 0.00% |
Monthly payments | $ 4,669 | $ 4,669 |
Komatsu Mobile Mining Equipment [Member] | Loans Payable [Member] | Maximum [Member] | ||
Interest rates | 4.40% | 4.40% |
Monthly payments | $ 33,906 | $ 33,906 |
Loan Payable (Details 2)
Loan Payable (Details 2) - Loans Payable [Member] | Mar. 31, 2016USD ($) |
2,016 | $ 3,776,086 |
2,017 | 5,198,262 |
2,018 | 5,323,624 |
2,019 | 3,133,086 |
2,020 | 6,630 |
Total | $ 17,437,688 |
Loan Payable (Details Textual)
Loan Payable (Details Textual) | 3 Months Ended | |
Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | |
Komatsu Mobile Mining Equipment [Member] | ||
Debt Instrument [Line Items] | ||
Payments to Acquire Productive Assets, Total | $ 57,313 | $ 574,600 |
Number Of Equipments Acquired | 1 | 4 |
Percentage Of Pretax Purchase Price | 10.00% | |
Komatsu Mobile Mining Equipment [Member] | Loans Payable [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Term | 4 years | |
Mining Drill Loan [Member] | Loans Payable [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Term | 3 years |
Subsequent Events (Details Text
Subsequent Events (Details Textual) | 1 Months Ended |
Apr. 30, 2016USD ($) | |
June 2015 Loan [Member] | |
Debt Instrument, Increase (Decrease), Net, Total | $ 988,696 |
Prior Periods Financial Resta67
Prior Periods Financial Restatements (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Liabilities: | ||||
Deferred tax liability | $ 12,922,000 | |||
Total liabilities | $ 83,219,277 | $ 75,052,894 | 44,280,690 | |
Shareholders’ Equity: | ||||
Additional paid-in capital | 43,631,310 | 43,627,511 | 43,468,510 | |
Total shareholders’ equity attributable to GQM Ltd. | 17,659,955 | 26,581,933 | 30,447,950 | |
Total shareholders’ equity | $ 58,132,766 | $ 67,267,544 | 64,526,394 | $ 65,983,177 |
Scenario, Previously Reported [Member] | ||||
Liabilities: | ||||
Deferred tax liability | 0 | |||
Total liabilities | 31,358,690 | |||
Shareholders’ Equity: | ||||
Additional paid-in capital | 56,390,510 | |||
Total shareholders’ equity attributable to GQM Ltd. | 43,369,950 | |||
Total shareholders’ equity | $ 77,448,394 |