Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 25, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | GOLD RESOURCE CORP | ||
Entity Central Index Key | 1,160,791 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 61,402,365 | ||
Entity Public Float | $ 364,977,707 | ||
Entity Current Reporting Status | Yes | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 7,762 | $ 22,390 |
Gold and silver rounds/bullion | 3,637 | 3,812 |
Accounts receivable, net | 1,744 | 2,884 |
Inventories, net | 14,342 | 11,636 |
Prepaid Taxes | 1,126 | |
Prepaid expenses and other current assets | 2,450 | 1,767 |
Total current assets | 31,061 | 42,489 |
Property, plant and mine development, net | 111,242 | 82,599 |
Deferred tax assets, net | 7,372 | 6,854 |
Other non-current assets | 656 | 981 |
Total assets | 150,331 | 132,923 |
Current liabilities: | ||
Accounts payable | 12,429 | 6,904 |
Loan payable, current | 765 | 568 |
Capital lease, current | 412 | 382 |
Income taxes payable, net | 1,944 | |
Mining royalty taxes payable, net | 1,926 | 2,359 |
Accrued expenses and other current liabilities | 2,030 | 2,851 |
Total current liabilities | 17,562 | 15,008 |
Reclamation and remediation liabilities | 3,298 | 2,946 |
Loan payable, long-term | 1,378 | 1,645 |
Capital lease, long-term | 831 | 1,218 |
Total liabilities | 23,069 | 20,817 |
Shareholders' equity: | ||
Common stock - $0.001 par value, 100,000,000 shares authorized: 58,850,431 and 56,916,484 shares outstanding at December 31, 2018 and 2017, respectively | 69 | 57 |
Additional paid-in capital | 121,592 | 114,584 |
Retained earnings | 12,656 | 4,520 |
Treasury stock at cost, 336,398 shares | (5,884) | (5,884) |
Accumulated other comprehensive loss | (1,171) | (1,171) |
Total shareholders' equity | 127,262 | 112,106 |
Total liabilities and shareholders' equity | $ 150,331 | $ 132,923 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Consolidated Balance Sheets | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares outstanding | 58,850,431 | 56,916,484 |
Treasury stock, shares | 336,398 | 336,398 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Consolidated Statements of Operations | |||
Sales, net | $ 115,308 | $ 110,156 | $ 83,227 |
Mine cost of sales: | |||
Production costs | 66,672 | 53,436 | 48,460 |
Depreciation and amortization | 14,616 | 14,554 | 12,169 |
Reclamation and remediation | 330 | 51 | 165 |
Total mine cost of sales | 81,618 | 68,041 | 60,794 |
Mine gross profit | 33,690 | 42,115 | 22,433 |
Costs and expenses: | |||
General and administrative expenses | 9,325 | 8,122 | 9,533 |
Exploration expenses | 4,703 | 4,349 | 4,314 |
Other expense (income), net | 3,111 | 1,166 | (560) |
Total costs and expenses | 17,139 | 13,637 | 13,287 |
Income before income taxes | 16,551 | 28,478 | 9,146 |
Provision for income taxes | 7,263 | 24,328 | 4,759 |
Net income | $ 9,288 | $ 4,150 | $ 4,387 |
Weighted average shares outstanding: | |||
Basic | 57,534,830 | 56,854,670 | 55,140,237 |
Diluted | 58,369,666 | 57,594,993 | 55,725,206 |
Consolidated Statements of Chan
Consolidated Statements of Changes In Shareholders' Equity - USD ($) $ in Thousands | Common Shares [Member] | Additional Paid-in Capital | Accumulated (Deficit)/ Retained Earnings | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Balance at Dec. 31, 2015 | $ 96,766 | $ (948) | $ (5,884) | $ (1,171) | $ 88,818 | |
Balance (in shares) at Dec. 31, 2015 | 54,603,104 | |||||
Balance at Dec. 31, 2015 | $ 55 | |||||
Stock options exercised | 391 | 391 | ||||
Stock options exercised (in shares) | 169,999 | |||||
Stock-based compensation | 1,240 | 1,240 | ||||
Dividends declared | (271) | (1,399) | (1,670) | |||
Common stock issued for the acquisition of mineral properties | $ 2 | 13,908 | 13,910 | |||
Common stock issued for the acquisition of mineral properties | 2,130,169 | |||||
Net income | 4,387 | 4,387 | ||||
Balance at Dec. 31, 2016 | $ 57 | |||||
Balance at Dec. 31, 2016 | 112,034 | 2,040 | (5,884) | (1,171) | 107,076 | |
Balance (in shares) at Dec. 31, 2016 | 56,903,272 | |||||
Adjustment to retained earnings as a result of adoption of ASU 2016-16 | (533) | (533) | ||||
Stock options exercised | 58 | $ 58 | ||||
Stock options exercised (in shares) | 25,000 | 25,000 | ||||
Stock-based compensation | 1,192 | $ 1,192 | ||||
Common stock issued for vested restricted stock units (in shares) | 78,400 | |||||
Dividends declared | (1,137) | (1,137) | ||||
Common stock issued for the acquisition of mineral properties | 1,300 | 1,300 | ||||
Common stock issued for the acquisition of mineral properties | 246,210 | |||||
Net income | 4,150 | 4,150 | ||||
Balance at Dec. 31, 2017 | $ 57 | 57 | ||||
Balance at Dec. 31, 2017 | 114,584 | 4,520 | (5,884) | (1,171) | 112,106 | |
Balance (in shares) at Dec. 31, 2017 | 57,252,882 | |||||
Stock options exercised | $ 1 | 1,203 | $ 1,204 | |||
Stock options exercised (in shares) | 712,271 | 1,412,926 | ||||
Stock-based compensation | 1,497 | $ 1,497 | ||||
Common stock issued for vested restricted stock units (in shares) | 89,921 | |||||
Dividends declared | (1,152) | (1,152) | ||||
Issuance of stock, net of issuance costs | $ 11 | 4,308 | $ 4,319 | |||
Issuance of stock, net of issuance costs (in shares) | 1,131,755 | 1,131,755 | ||||
Net income | 9,288 | $ 9,288 | ||||
Balance at Dec. 31, 2018 | $ 69 | 69 | ||||
Balance at Dec. 31, 2018 | $ 121,592 | $ 12,656 | $ (5,884) | $ (1,171) | $ 127,262 | |
Balance (in shares) at Dec. 31, 2018 | 59,186,829 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net income | $ 9,288,000 | $ 4,150,000 | $ 4,387,000 |
Adjustments to reconcile net income to net cash from operating activities: | |||
Deferred income taxes | (501,000) | 14,991,000 | (1,555,000) |
Depreciation and amortization | 15,169,000 | 14,998,000 | 12,588,000 |
Stock-based compensation | 1,497,000 | 1,192,000 | 1,240,000 |
Other operating adjustments | 2,535,000 | 1,285,000 | 298,000 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (220,000) | (2,254,000) | (309,000) |
Inventories | (2,820,000) | (2,797,000) | (738,000) |
Prepaid expenses and other current assets | (417,000) | (448,000) | 793,000 |
Other noncurrent assets | 130,000 | (7,000) | 79,000 |
Accounts payable and other accrued liabilities | 1,489,000 | 1,636,000 | (3,579,000) |
Mining royalty and income taxes payable, net | (3,894,000) | 2,887,000 | 4,695,000 |
Net cash provided by operating activities | 22,256,000 | 35,633,000 | 17,899,000 |
Cash flows from investing activities: | |||
Capital expenditures | (40,076,000) | (25,432,000) | (15,140,000) |
Proceeds from the sale of equity investments | 749,000 | ||
Other investing activities | 6,000 | (257,000) | (302,000) |
Net cash used in investing activities | (40,070,000) | (25,689,000) | (14,693,000) |
Cash flows from financing activities: | |||
Proceeds from the exercise of stock options | 1,261,000 | 0 | 391,000 |
Dividends paid | (1,149,000) | (1,137,000) | (1,670,000) |
Repayment of loan payable | (596,000) | (184,000) | |
Repayments of capital leases | (383,000) | (73,000) | (606,000) |
Proceeds from issuance of stock, net of issuance costs | 4,319,000 | ||
Net cash used in financing activities | 3,452,000 | (1,394,000) | (1,885,000) |
Effect of exchange rate changes on cash and cash equivalents | (266,000) | (326,000) | 23,000 |
Net (decrease) increase in cash and cash equivalents | (14,628,000) | 8,224,000 | 1,344,000 |
Cash and cash equivalents at beginning of period | 22,390,000 | 14,166,000 | 12,822,000 |
Cash and cash equivalents at end of period | 7,762,000 | 22,390,000 | 14,166,000 |
Supplemental Cash Flow Information | |||
Interest expense paid | 177,000 | 65,000 | 13,000 |
Income and mining taxes paid | 7,068,000 | 3,102,000 | 256,000 |
Non-cash investing activities: | |||
Increase in accrued capital expenditures | 3,302,000 | 1,041,000 | (2,868,000) |
Change in estimate for asset retirement cost | 271,000 | 366,000 | (21,000) |
Equipment purchased through loan payable | 526,000 | 2,397,000 | |
Equipment purchased under capital lease | $ 26,000 | 1,686,000 | 300,000 |
Common stock issued for the acquisition of mineral rights | $ 1,300,000 | $ 13,910,000 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Nature of Operations and Summary of Significant Accounting Policies | |
Nature of Operations and Summary of Significant Accounting Policies | 1. Nature of Operations and Summary of Significant Accounting Policies Nature of Operations Gold Resource Corporation (the “Company”) was organized under the laws of the State of Colorado on August 24, 1998. The Company is a producer of metal concentrates that contain gold, silver, copper, lead and zinc, and doré containing gold and silver at the Aguila and Alta Gracia projects in the southern state of Oaxaca, Mexico (“Oaxaca Mining Unit”). The Aguila project includes the Arista underground mine and processing facility, which are currently in operation. The Alta Gracia project includes the Mirador underground mine which began operations in 2017. The Company also performs exploration and development work on our portfolio of precious metal properties in Nevada, United States of America (“Nevada Mining Unit”) and continues to evaluate other properties for possible acquisition. Significant Accounting Policies Basis of Presentation The consolidated financial statements included herein are expressed in United States dollars, and conform to United States generally accepted accounting principles (“U.S. GAAP”). The consolidated financial statements include the accounts of the Company, its Mexican subsidiary, Don David Gold Mexico S.A. de C.V. (“Don David Gold Mexico”) and its wholly-owned United States subsidiaries GRC Nevada Inc. and Walker Lane Minerals Corp. (“Walker Lane”). Intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amount 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 periods. Management routinely makes judgments and estimates about the effects of matters that are inherently uncertain and bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances. Actual results could differ from these estimates. Reclassifications Certain amounts presented in prior periods have been reclassified to conform to the current period presentation. The reclassifications had no material effect on the Company’s results of operations or financial condition. Cash and Cash Equivalents Cash and cash equivalents consist of all cash balances and highly liquid investments with a remaining maturity of three months or less when purchased and are carried at cost. Gold and Silver Rounds/Bullion From time to time, the Company may purchase gold and silver bullion on the open market in order to diversify its treasury and provide an option for shareholders to convert their dividends into bullion. The purchased gold and silver bullion is carried at quoted market value prices based on the daily London P.M. fix as of the balance sheet date. The Company considers bullion a highly-liquid investment. Accounts Receivable, net Accounts receivable consists of trade receivables, which are recorded net of allowance for doubtful accounts, from the sale of doré and metals concentrates, as well an embedded derivative based on mark-to-market adjustments for outstanding provisional invoices based on metal forward prices. Please see Note 14 and Note 19 for additional information related to the embedded derivative. As of December 31, 2018 and 2017, our allowance for doubtful accounts was $1.4 million and nil, respectively. Inventories The major inventory categories are set forth below: Stockpile Inventories : Stockpile inventories represent ore that has been mined and is available for further processing. Stockpiles are measured by estimating the number of tonnes added and removed from the stockpile, an estimate of the contained metals (based on assay data) and the estimated metallurgical recovery rates. Costs are allocated to stockpiles based on relative values of material stockpiled and processed using current mining costs incurred, including applicable overhead, depreciation and amortization relating to mining operations. Material is removed at each stockpile’s average cost per tonne. Stockpiles are carried at the lower of average cost or net realizable value. Net realizable value represents the estimated future sales price of the product based on current and long-term metals prices, less the estimated costs to complete production and bring the product to sale. The current portion of stockpiles is determined based on the expected amounts to be processed within the next 12 months. Stockpiles not expected to be processed within the next 12 months are classified as long term. As of December 31, 2018, all stockpiles were classified as current. Concentrate Inventories : Concentrates inventories include metal concentrates located either at the Company’s facilities or in transit to its customer’s port. Inventories consist of copper, lead and zinc metal concentrates, which also contain gold and silver mineralization. Concentrate inventories are carried at the lower of cost of production or net realizable value based on current metals prices. Doré Inventory: Doré includes gold and silver doré bars held at the Company’s facility. Doré inventories are carried at the lower of cost of production or net realizable value based on current metals prices. Leach Pad: Ore on leach pad represents ore that has been mined and placed on the leach pad where a solution is applied to the surface of the heap to dissolve the gold or silver. Costs are added to ore on leach pads based on current mining costs, including applicable depreciation and amortization relating to mining operations. Costs are removed from ore on leach pads as ounces are recovered based on the average cost per estimated recoverable ounce of gold or silver on the leach pad. Estimates of recoverable ore on the leach pad are calculated from the quantities of ore placed on the leach pad (measured tonnes added to the leach pad), the grade of ore placed on the leach pad (based on assay data) and a recovery percentage (based on ore type). Although the quantities of recoverable ore placed on the leach pad are reconciled by comparing the grades of ore placed on pads to the quantities of metal actually recovered (metallurgical balancing), the nature of the leaching process inherently limits the ability to precisely monitor inventory levels. As a result, the metallurgical balancing process is constantly monitored and estimates are refined based on actual results over time. Variations between actual and estimated quantities resulting from changes in assumptions and estimates that do not result in write-downs to net realizable value are accounted for on a prospective basis. Materials and Supplies Inventories : Materials and supplies inventories consist of chemical reagents, parts, fuels and other materials and supplies. Cost includes applicable taxes and freight. Materials and supplies inventory is carried at lower of average cost or net realizable value. Write-downs of inventory are charged to expense. IVA Taxes Receivable and Payable In Mexico, value added (“IVA”) taxes are assessed on purchases of materials and services and sales of products. Businesses are generally entitled to recover the taxes they have paid related to purchases of materials and services, either as a refund or as a credit against future taxes payable. Likewise, businesses owe IVA taxes as the business sells a product and collects IVA taxes from its customers. Amounts recorded as IVA taxes in the consolidated financial statements represent the net estimated IVA tax receivable or payable, since there is a legal right of offset of IVA taxes. Property, Plant and Mine Development Land and Mineral Rights : The costs of acquiring land and mineral rights are considered tangible assets. Administrative and holding costs to maintain an exploration property are expensed as incurred. If a mineable mineral deposit is discovered, such capitalized costs are amortized when production begins using the units of production (“UOP”) method. If no mineable mineral deposit is discovered or such rights are otherwise determined to have diminished value, such costs are expensed in the period in which the determination is made. Mine Development : The costs include engineering and metallurgical studies, drilling and other related costs to delineate an ore body, the building of access ways, shafts, lateral access, drifts, ramps and other infrastructure. Costs incurred before mineralization is classified as proven and probable reserves are expensed and classified as exploration expenses. Capitalization of mine development project costs, that meet the definition of an asset, begins once mineralization is classified as proven and probable reserves. Drilling costs incurred during the production phase for operational ore control are allocated to inventory costs and then included as a component of production costs. All other drilling and related costs are expensed as incurred. Mine development costs are amortized using the UOP method based on estimated recoverable ounces in proven and probable reserves. Property and Equipment : All items of property and equipment are carried at cost. Normal maintenance and repairs are expensed as incurred while expenditures for major maintenance and improvements are capitalized. Gains or losses on disposition are recognized in other expense (income). Construction in Progress : Expenditures for new facilities or equipment are capitalized and recorded at cost. Once completed and ready for its intended use, the asset is transferred to property and equipment to be depreciated or amortized . Depreciation and Amortization : Capitalized costs are depreciated or amortized using the straight-line or UOP method at rates sufficient to depreciate such costs over the shorter of estimated productive lives of such assets or the useful life of the individual assets. The estimates for mineral reserves are a key component in determining the UOP depreciation rates. The estimates of reserves may change, possibly in the near term, resulting in changes to depreciation and amortization rates in future reporting periods. The following are the estimated economic lives of depreciable assets: Range of Lives Asset retirement costs UOP Furniture, computer and office equipment 3 to 10 years Light vehicles and other mobile equipment 4 years Machinery and equipment UOP to 4 years Mill facilities and related infrastructure UOP Mine development UOP Impairment of Long-Lived Assets The Company evaluates its long-lived assets for impairment when events or changes in circumstances indicate that the related carrying amounts may not be recoverable. Asset impairment is considered to exist if the total estimated future cash flows on an undiscounted basis are less than the carrying amount of the asset. If an impairment is indicated, a determination is made whether an impairment has occurred and any impairment losses are measured as the excess of carrying value over the total discounted estimated future cash flows, or the application of an expected fair value technique in the absence of an observable market price and are charged to expense on the Company’s consolidated statements of operations. In estimating future cash flows, assets are grouped at the lowest level for which there are identifiable cash flows that are largely independent of future cash flows from other asset groups. Existing reserves and other mineralized material are included when estimating the fair value in determining whether the assets are impaired. The Company’s estimates of future cash flows are based on numerous assumptions including expected gold and other commodity prices, production levels, capital requirements and estimated salvage values. It is possible that actual future cash flows will be significantly different than the estimates, as actual future quantities of recoverable minerals, gold and other commodity prices, production levels and costs and capital requirements are each subject to significant risks and uncertainties. Treasury Stock Treasury stock represents shares of the Company’s common stock which have been repurchased on the open market at the prevailing market price at the time of purchase and have not been cancelled. Treasury stock is shown at cost as a separate component of equity. Revenue Recognition The Company recognizes revenue from doré and concentrate sales. Concentrate sales : C oncentrate sales are initially recorded based on 100% of the provisional sales prices, net of treatment and refining charges, at the time of delivery to the customer at which point the performance obligations are satisfied and control of the product is transferred to the customer. Adjustments to the provisional sales prices are made to take into account the mark-to-market changes based on the forward prices of metals until final settlement occurs. The changes in price between the provisional sales price and final sales price are considered an embedded derivative that is required to be separated from the host contract for accounting purposes. The host contract is the receivable from the sale of the concentrates at the quoted metal prices at the time of delivery. The embedded derivative, which does not qualify for hedge accounting, is adjusted to market through revenue each period prior to final settlement. Market changes in the prices of metals between the delivery and final settlement dates will result in adjustments to revenues related to previously recorded sales of concentrate. Sales are recorded net of charges for treatment, refining, smelting losses and other charges negotiated with the buyer. These charges are estimated upon delivery of concentrates based on contractual terms and adjusted to reflect actual charges at final settlement. Historically, actual charges have not varied materially from the Company’s initial estimates . Doré sales : Doré sales are recognized upon the satisfaction of performance obligations, which occurs when control of the doré transfers to the customer. Transfer of control occurs once the customer takes possession of the doré. Doré sales are recorded using quoted metal prices, net of refining charges . Production Costs Production costs include labor and benefits, royalties, concentrate and doré shipping costs, mining subcontractors, fuel and lubricants, legal and professional fees related to mine operations, stock-based compensation attributable to mine workers, materials and supplies, repairs and maintenance, explosives, housing and food, insurance, reagents, travel, medical services, security equipment, office rent, tools and other costs that support mining operations. Exploration Costs Exploration costs are charged to expense as incurred. Costs to identify new mineral resources and to evaluate potential resources are considered exploration costs. Stock-Based Compensation The Company accounts for stock-based compensation under the fair value recognition and measurement provisions of U.S. GAAP. Those provisions require all stock-based payments, including grants of stock options and restricted stock units (“RSUs”), to be measured based on the grant date fair value of the awards, with the resulting expense generally recognized on a straight-line basis in the consolidated statements of operations over the period during which services are performed in exchange for the award. The majority of the awards are earned over a service period of three years . The Company's estimates may be impacted by certain variables including, but not limited to, stock price volatility, employee stock option exercise behaviors, additional stock option grants, and estimates of forfeitures. Reclamation and Remediation Costs Reclamation costs are allocated to expense over the life of the related assets and are periodically adjusted to reflect changes in the estimated present value resulting from the passage of time and revisions to the estimates of either the timing or amount of the reclamation and remediation costs. Reclamation obligations are based in part on when the spending for an existing environmental disturbance will occur. The Company reviews, at least on an annual basis, the reclamation obligation at each mine. Prior to 2014, the Company had been recognizing only reclamation and remediation obligations and all associated asset retirement costs were written off due to the exploration stage status of the Company. In 2014, the Company became a production stage company and therefore capitalized asset retirement costs and recorded an asset retirement obligation. Please see Note 9 for additional information. Accounting for reclamation and remediation obligations requires management to make estimates unique to each mining operation of the future costs expected to be incurred to complete the reclamation and remediation work required to comply with existing laws and regulations. Actual costs incurred in future periods could differ from amounts estimated. Additionally, future changes to environmental laws and regulations could increase the extent of reclamation and remediation work required. Any such increases in future costs could materially impact the amounts charged to operations for reclamation and remediation. Accumulated Other Comprehensive Loss Accumulated other comprehensive loss is presented in the consolidated statements of changes in shareholders’ equity. Accumulated other comprehensive loss is composed of foreign currency translation adjustment effects related to the historical adjustment when the functional currency was the Mexican peso for our Mexico subsidiary. This loss will remain on our consolidated balance sheet until the sale or dissolution of our Mexico subsidiary. Income and Mining Royalty Taxes Income taxes are computed using the asset and liability method. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial and tax reporting purposes and the effect of net operating loss and foreign tax credit carry-forwards using enacted tax rates in effect in the years in which the differences are expected to reverse. Deferred tax assets are evaluated to determine if it is more likely than not that they will be realized. Please see Note 5 for additional information. Net Income Per Share Basic earnings per share is calculated based on the weighted average number of common shares outstanding for the period. Diluted income per share reflects the dilution that could occur if potentially dilutive securities, as determined using the treasury stock method, are converted into common stock. Potentially dilutive securities are excluded from the calculation when their inclusion would be anti-dilutive, such as periods when a net loss is reported or when the exercise price of the instrument exceeds the average fair market value. Foreign Currency The functional currency for all of the Company’s subsidiaries is the United States dollar (“U.S. dollar”). Concentration of Credit Risk The Company has considered and assessed the credit risk resulting from its concentrate sales and doré sales arrangements with its customers. In the event that the Company’s relationships with its customers are interrupted for any reason, the Company believes that it would be able to locate another entity to purchase its metals concentrates and doré bars; however, any interruption could temporarily disrupt the Company’s sale of its products and adversely affect operating results. The Company’s Aguila and Alta Gracia projects, which are located in the State of Oaxaca, Mexico, accounted for 100% of the Company’s total sales for the years ended December 31, 2018, 2017 and 2016. Some of the Company’s operating cash balances are maintained in accounts that currently exceed federally insured limits. The Company believes that the financial strength of the depositing institutions mitigates the underlying risk of loss. To date, these concentrations of credit risk have not had a significant impact on the Company’s financial position or results of operations. Recently Adopted Accounting Pronouncements Accounting Standards Update No. 2014-09—Revenue from Contracts with Customers (“Topic 606”). On May 28, 2014, the Financial Accounting Standards Board (“FASB”) issued guidance that requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. This ASU was further amended in August 2015, March 2016, April 2016, May 2016 and December 2016 by ASU No. 2015-14, No. 2016-08, No. 2016-10, No. 2016-12 and No. 2016-20, respectively. The guidance provides a five-step approach to be applied to all contracts with customers and also requires expanded disclosures about revenue recognition. On January 1, 2018, the Company adopted the new accounting guidance for all contracts using the retrospective approach. The adoption of this new guidance did not result in any changes to previously reported revenue amounts. Please see Note 2 for more information. In March 2018, the Company adopted Accounting Standards Update No. 2018-05—Income Taxes (“Topic 740”): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 , which updates the income tax accounting in U.S. GAAP to reflect the Securities and Exchange Commission (“SEC”) interpretive guidance released on December 22, 2017, when the Tax Cuts and Jobs Act was signed into law. Please see Note 5 for additional information. Recently Issued Accounting Standards Updates Accounting Standards Update No. 2016-02—Leases (“Topic 842”). I n February 2016, the FASB issued a new standard regarding leases. Lessees will be required to recognize virtually all of their leases on the balance sheet, by recording a right-of-use asset and a lease liability. Public business entities are required to adopt the new leasing standard for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. For calendar year-end public entities, this means an adoption date of January 1, 2019. Early adoption is permitted. The Company is finalizing its assessment of the new guidance and the impact it will have on its consolidated financial statements and disclosures. The Company will adopt certain practical expedients that allows us to not reassess: (1) whether any expired or existing contracts are or contain leases, (2) lease classification for any expired or existing leases and (3) initial direct costs for any expired or existing leases. The Company will adopt this guidance at the adoption date of January 1, 2019, using the transition method that allows for the initial application of Topic 842 as of January 1, 2019 and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company does not expect to recognize a material adjustment to retained earnings upon adoption. The Company is additionally assessing the impact of Topic 842 on its internal controls over financial reporting. The Company determines if an arrangement is a lease at inception. The Company leases equipment under operating and capital leases. The Company leases its office locations under operating leases. The Company’s current capital lease obligations consist of equipment. The capital leases addressed in Note 11 to the consolidated financial statements are expected to be accounted for as finance leases upon adoption of Topic 842, and the Company does not expect any significant changes to the accounting for such leases upon adoption. Under Topic 842, operating leases result in the recognition of right-of-use (“ROU”) assets and lease liabilities on the balance sheet. ROU assets represent the Company’s right to use the leased asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments. Under Topic 842, operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, upon adoption of Topic 842, the Company will use its estimated incremental borrowing rate at the commencement date to determine the present value of lease payments. The operating lease ROU assets will also include any lease payments made and exclude lease incentives. The lease terms may include options to extend or terminate the lease that are reasonably certain to be exercised. Lease expense under Topic 842 will be recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, and the Company expects to account for the lease and non-lease components as separate components under Topic 842. The adoption of Topic 842 will have a material impact on Company’s Consolidated Balance Sheet due to the recognition of the ROU assets and lease liabilities. The adoption of Topic 842 is not expected to have a material impact on the Company’s Consolidated Statement of Operations or the Company’s Consolidated Cash Flow Statement. Because of the transition method the Company will use to adopt Topic 842, Topic 842 will not be applied to periods prior to adoption and the adoption of Topic 842 will have no impact on the Company’s previously reported results. The future minimum lease payments for the Company’s operating leases as of December 31, 2018 are discussed in Note 12 to the Consolidated Financial Statements. Upon adoption of Topic 842, the Company expects to recognize operating lease ROU assets and lease liabilities of approximately $13.8 million which reflects the present value of future lease payments. After the adoption of Topic 842, the Company will first report the operating lease ROU assets and lease liabilities as of March 31, 2019. The components of the Company’s future lease payments are discussed in Note 12 to the Consolidated Financial Statements. The capital leases addressed in Note 11 are expected to be accounted for as finance leases upon adoption of Topic 842, and the Company does not expect any significant changes to the accounting for such leases upon adoption. Accounting Standards Update No. 2018-07—Compensation — Stock Compensation (“Topic 718”): Improvements to Non-employee Share-Based Payment Accounting (“ASU 2018-07”). In June 2018, the FASB issued new guidance regarding accounting for stock compensation. The new guidance expands the scope of Topic 718 to include all share-based payment transactions for acquiring goods or services from non-employees. ASU 2018-07 specifies that Topic 718 applies to all share-based payment transactions in which the grantor acquires goods or services to be used or consumed in its own operations by issuing share-based payment awards. ASU 2018-07 also clarifies that Topic 718 does not apply to share-based payments used to effectively provide (1) financing to the issuer or (2) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under ASC 606. ASU 2018-07 is effective for public entities beginning December 1, 2019, with early adoption permitted, but no earlier than the adoption of ASC 606. The Company does not expect the adoption of this guidance to have material impact on its consolidated financial statements. Accounting Standards Update No. 2018-09—Codification Improvements (“ASU 2018-09”). In July 2018, the FASB issued new guidance which makes changes to a variety of topics to clarify, correct errors in, or make minor improvements to the Accounting Standards Codification (“ASC’). The transition and effective date guidance is based on the facts and circumstances of each amendment. Some of the amendments do not require transition guidance and will be effective upon issuance of ASU 2018-09. However, many of the amendments do have transition guidance with effective dates for annual periods beginning after December 15, 2018. The Company does not expect the adoption of this guidance to have material impact on its consolidated financial statements. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2018 | |
Revenue | |
Revenue | 2. Revenue The following table presents the Company’s net sales disaggregated by source: Year ended December 31, 2018 2017 2016 (in thousands) Doré sales, net Gold $ 6,250 $ 6,270 $ 11,384 Silver 1,348 159 139 Less: Refining charges (118) (63) (105) Total doré sales, net 7,480 6,366 11,418 Concentrate sales Gold 22,750 25,526 20,490 Silver 22,972 27,567 28,803 Copper 9,919 6,646 4,697 Lead 15,100 11,568 7,225 Zinc 46,743 38,281 25,424 Less: Treatment and refining charges (5,447) (7,697) (16,186) Total concentrate sales, net 112,037 101,891 70,453 Realized/unrealized embedded derivative (loss)/gain, net (4,209) 1,899 1,356 Total sales, net $ 115,308 $ 110,156 $ 83,227 |
Gold and Silver Bullion
Gold and Silver Bullion | 12 Months Ended |
Dec. 31, 2018 | |
Gold and Silver Bullion | |
Gold and Silver Bullion | 3. Gold and Silver Rounds/Bullion The Company periodically purchases gold and silver bullion on the open market for investment purposes and to use in its dividend exchange program under which shareholders may exchange their cash dividends for minted gold and silver rounds. During the year ended December 31, 2018 and 2017, the Company purchased nil ounces and 215.85 ounces, respectively, of gold bullion and nil ounces and 90 ounces, respectively, of silver bullion. At December 31, 2018 and 2017, the Company’s holdings of rounds/bullion, using quoted market prices, consisted of the following: 2018 2017 Ounces Per Ounce Amount Ounces Per Ounce Amount (in thousands) (in thousands) Gold 1,888 $ 1,279 $ 2,415 1,905 $ 1,291 $ 2,459 Silver 79,864 $ 15.30 1,222 80,224 $ 16.87 1,353 Total holdings $ 3,637 $ 3,812 |
Current Inventories
Current Inventories | 12 Months Ended |
Dec. 31, 2018 | |
Current Inventories | |
Current Inventories | 4. Current Inventories At December 31, 2018 and 2017, inventories consisted of the following: 2018 2017 (in thousands) Stockpiles - underground mine $ 2,365 $ 1,450 Stockpiles - open pit mine 414 101 Leach pad 376 - Concentrates 1,231 1,973 Doré 1,289 394 Subtotal - product inventory 5,675 3,918 Materials and supplies (1) 8,667 7,718 Total $ 14,342 $ 11,636 (1) Net of reserve for obsolescence of $857 and $743, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Taxes | |
Income Taxes | 5. Income Taxes On December 22, 2017, the U.S. government enacted comprehensive tax legislation (the “Tax Act”), which significantly revised the U.S. corporate income tax law by lowering the U.S. federal corporate income tax rate from 35% to 21%, implementing a territorial tax system, imposing a one-time tax on foreign unremitted earnings and setting limitations on deductibility of certain costs, among other things. T he U.S. Securities and Exchange Commission’s Staff Accounting Bulletin (“SAB”) 118 allows a measurement period of up to one year after the enactment date of the Tax Act to finalize the recording of the related tax impacts. The Company has not revised any of the 2017 provisional estimates under SAB No. 118 and ASU No 2018-05 and has filed its U.S. income tax return for the year ended December 31, 2017. Gold Resource Corporation and its U.S. subsidiaries file a consolidated U.S. tax return and the Company’s foreign subsidiary files in Mexico. For financial reporting purposes, net income before income taxes includes the following components: Years Ended December 31, 2018 2017 2016 (in thousands) U.S. Operations $ (9,378) $ (8,142) $ (7,001) Foreign Operations, Mexico 25,929 36,620 16,147 Total income before income taxes $ 16,551 $ 28,478 $ 9,146 The Company's income tax expense from continuing operations consists of the following: Years ended December 31, 2018 2017 2016 (in thousands) Current taxes: Federal $ - $ 9 $ 353 State - - - Foreign 7,763 9,327 5,961 Total current taxes $ 7,763 $ 9,336 $ 6,314 Deferred taxes: Federal $ (1,692) $ 4,923 $ (1,715) State - - - Foreign 1,192 10,069 160 Total deferred taxes $ (500) $ 14,992 $ (1,555) Total income tax provision $ 7,263 $ 24,328 $ 4,759 The provision for income taxes for the years ended December 31, 2018, 2017 and 2016, differs from the amount of income tax determined by applying the applicable United States statutory federal income tax rate to pre-tax income from operations as a result of the following differences: Years Ended December 31, 2018 2017 2016 (in thousands) Tax at statutory rates $ 3,476 $ 9,967 $ 3,110 Foreign rate differential 2,161 (1,780) (617) Dividends, net of foreign tax credits - - 795 One-time tax on foreign unremitted earnings (Tax Act) - 4,627 Changes in deferred tax assets (189) 6,239 (625) Mexico mining tax 1,777 2,816 1,270 U.S. Tax rate reduction from 35% to 21% (Tax Act) - 2,671 - Other 38 (212) 826 Tax provision $ 7,263 $ 24,328 $ 4,759 The following table sets forth deferred tax assets and liabilities: At December 31, 2018 2017 (in thousands) Non-current deferred tax assets: Tax loss carryforward - U.S. $ 3,862 $ 1,450 Property and equipment - 1,935 Share-based compensation 4,339 4,622 Foreign tax credits 4,448 4,185 Other 3,572 2,284 Total deferred tax assets 16,221 14,476 Valuation allowance (7,318) (6,720) Deferred tax assets after valuation allowance $ 8,903 $ 7,756 Deferred tax liability – Property and equipment (1,531) (902) Net deferred tax asset $ 7,372 $ 6,854 Mexico Mining Taxation Mining entities in Mexico are subject to two mining duties, in addition to the 30% Mexico corporate income tax: (i) a “special” mining duty of 7.5% of taxable income as defined under Mexican tax law (also referred to as “mining royalty tax”) on extracting activities performed by concession holders and (ii) the “extraordinary” mining duty of 0.5% on the gross revenue from the sale of gold, silver and platinum. The mining royalty tax is generally applicable to earnings before income tax, depreciation, depletion, amortization, and interest. In calculating the mining royalty tax, there are no deductions related to depreciable costs from operational fixed assets, but exploration and prospecting depreciable costs are deductible when incurred. Both duties are tax deductible for income tax purposes. As a result, our effective tax rate applicable to the Company’s Mexican operations is substantially higher than Mexico statutory rate. The Company periodically transfers funds from its Mexican wholly-owned subsidiary to the U.S. in the form of dividends. Mexico requires a 10% withholding tax on dividends on all post-2013 earnings. Dividends from earnings generated prior to 2014 were exempted from the new dividend withholding tax. The Company began distributing post-2013 earnings from Mexico in 2018. According to the existing U.S. – Mexico tax treaty, the dividend withholding tax between these countries is limited to 5% if certain requirements are met. The Company determined that it had met such requirements and paid a 5% withholding tax on dividends received from Mexico in 2018 in the amount of $0.4 million. Other Tax Disclosures The Company evaluates the evidence available to determine whether a valuation allowance is required on the deferred tax assets. The Company determined that the deferred tax assets related to the foreign tax credits, the state net operating loss carry forwards, and other state related deferred tax assets were not "more likely than not" to be realized and a full valuation allowance was recorded as of December 31, 2018. As a result of the adoption of ASU 2016-09 in 2017, excess tax benefits and tax deficiencies will be prospectively classified to the statement of operations instead of additional paid-in capital. Upon adoption, the Company recorded a $4.2 million deferred tax asset related to previously unrecognized foreign tax credits but placed a valuation allowance against the full amount of the deferred tax asset due to the Company’s assessment of the realizability of these foreign tax credits. Thus, no net impact to the financial statements was generated as a result of adoption of ASU 2016-09. During the year ended December 31, 2017, the Company revised its temporary book and tax differences in the basis of its Isabella Pearl property, included in its Walker Lane Minerals Corp. acquisition which resulted in a $4.2 million increase in deferred tax assets, net, and a corresponding decrease in property, plant and mine development. At December 31, 2018, the Company has Federal loss carry-forwards of $11 million, with no expiration date, and foreign tax credits of $4.4 million that expire between 2023 and 2028. The state of Colorado tax loss carry-forwards and the foreign tax credits have a full valuation allowance in place as of December 31, 2018. As of both December 31, 2018 and 2017, the Company believes that it has no uncertain tax positions. If the Company were to determine there was an uncertain tax position, the Company would recognize the liability and related interest and penalties within income tax expense. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Dec. 31, 2018 | |
Prepaid Expenses And Other Current Assets | |
Prepaid Expenses and Other Current Assets | 6. Prepaid Expenses and Other Current Assets At December 31, 2018 and 2017, prepaid expenses and other current assets consisted of the following: 2018 2017 (in thousands) Advances to suppliers $ 289 $ 163 Prepaid insurance 1,179 869 Vendor deposits 236 501 IVA taxes receivable, net 538 - Other current assets 208 234 Total $ 2,450 $ 1,767 |
Property, Plant and Mine Develo
Property, Plant and Mine Development, net | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Mine Development, net | |
Property, Plant and Mine Development – net | 7. Property, Plant and Mine Development, net At December 31, 2018 and 2017, property, plant and mine development consisted of the following: 2018 2017 (in thousands) Asset retirement costs $ 1,240 $ 1,079 Construction-in-progress (1) 34,335 10,838 Furniture and office equipment 1,861 1,664 Land 242 242 Light vehicles and other mobile equipment 2,508 2,211 Machinery and equipment 27,485 22,916 Mill facilities and infrastructure 11,712 10,075 Mineral interests and mineral rights 17,958 17,658 Mine development 69,487 56,957 Software and licenses 1,659 1,678 Subtotal (2) (3) 168,487 125,318 Accumulated depreciation and amortization (57,245) (42,719) Total $ 111,242 $ 82,599 (1) Nevada construction-in-progress costs of $21.6 million and $7.4 million at December 31, 2018 and December 31, 2017, respectively. Mexico construction-in-progress of $12.7 million and $3.4 million at December 31, 2018 and December 31, 2017, respectively. (2) Includes $1.6 million of assets recorded under capital leases at December 31, 2018 and December 31, 2017. Please see Note 11 for additional information . (3) Includes accrued capital expenditures of $4.3 million and $1.0 at December 31, 2018 and 2017, respectively. The Company recorded depreciation and amortization expense for years ended December 31, 2018, 2017 and 2016 of $15.2 million, $15.0 million and $12.6 million, respectively. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Accrued Expenses and Other Current Liabilities | |
Accrued Expenses and Other Current Liabilities | 8. Accrued Expenses and Other Current Liabilities At December 31, 2018 and 2017, accrued expenses and other current liabilities consisted of the following: 2018 2017 (in thousands) Accrued insurance $ 364 $ 662 Accrued royalty payments 1,432 1,805 Dividends payable 98 95 IVA taxes payable, net - 274 Other payables 136 15 Total $ 2,030 $ 2,851 |
Reclamation and Remediation
Reclamation and Remediation | 12 Months Ended |
Dec. 31, 2018 | |
Reclamation And Remediation | |
Reclamation and Remediation | 9. Reclamation and Remediation The following table presents the changes in the Company’s reclamation and remediation obligations for the years ended December 31, 2018 and 2017: 2018 2017 (in thousands) Reclamation liabilities – balance at beginning of period $ 2,005 $ 1,907 Changes in estimate - 10 Foreign currency exchange loss 4 88 Reclamation liabilities – balance at end of period 2,009 2,005 Asset retirement obligation – balance at beginning of period 941 518 Changes in estimate 271 366 Accretion expense 78 35 Foreign currency exchange loss (1) 22 Asset retirement obligation – balance at end of period 1,289 941 Total period end balance $ 3,298 $ 2,946 The Company’s reclamation liabilities and asset retirement obligation of $2.5 million for its Arista and Alta Gracia projects as of December 31, 2018 and 2017 were discounted using a discount rate of 8%. The Company is required to post bonds with the Bureau of Land Management (“BLM”) for reclamation of planned mineral exploration and development programs associated with the Company’s mineral properties located on BLM lands in the United States. As a part of the permitting process for the Isabella Pearl project, the Company is currently required to have a reclamation bond of approximately $9.2 million held with the BLM. The Company purchased a surety contract for the reclamation bond which did not require any cash collateral. The Company is required to maintain the reclamation bond until all abandonment and remediation obligations have been completed to the satisfaction of the BLM. The surety contract names the Company’s subsidiary Walker Lane Minerals Corp. as an indemnitor to the surety agreement. The surety may require additional collateral to be placed into the reclamation deposit account at their discretion. As of December 31, 2018, the Company recorded an asset retirement obligation of $0.8 million, using a credit adjusted risk-free rate of 8%, related to the Isabella Pearl project. |
Loan Payable
Loan Payable | 12 Months Ended |
Dec. 31, 2018 | |
Loan Payable | |
Loan Payable | 10. Loans Payable The Company has financed certain equipment purchases. The loans bear annual interest at rates ranging from 3% to 4.48%, are collateralized by the equipment, and require monthly principal and interest payments of $0.07 million. As of December 31, 2018, there is an outstanding balance of $2.1 million which approximates fair value of the loans. Scheduled minimum repayments are $0.8 million in 2019, $0.8 million in 2020, and $0.5 million in 2021. One of the loan agreements is subject to a prepayment penalty, ranging from 1% to 2% of the outstanding loan balance at time of full repayment, depending on the time of repayment . |
Capital Lease
Capital Lease | 12 Months Ended |
Dec. 31, 2018 | |
Capital Lease | |
Capital Lease | 11. Capital Leases The Company has capital lease agreements for certain equipment. The leases bear annual imputed interest of 1.58% to 5.95% and require monthly principal, interest, and sales tax payments of $0.04 million. Scheduled minimum annual payments as of December 31, 2018 are as follows ( in thousands ) : Year Ending December 31: 2019 $ 470 2020 470 2021 406 2022 - Total minimum obligations 1,346 Interest portion (103) Present value of net minimum payments 1,243 Less: current portion (412) Non-current portion $ 831 As noted above in Note 1 , the Company will adopt a new lease accounting standard on January 1, 2019. Upon adoption of the new standard, the capital leases above are expected to be accounted for as finance leases. The Company does not expect any significant changes to the accounting upon this change in classification. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies | |
Commitments and Contingencies | 12. Commitments and Contingencies Operating leases The Company signed a 24-month Contract Mining Agreement with a contract miner on November 14, 2018 relating to mining activities at the Isabella Pearl project. Under the terms of the Contract Mining Agreement, the contract miner is required to provide all required labor, material and equipment (excluding fuel and ammonium nitrate) to complete all necessary drilling, blasting, loading, hauling and related activities for the mining of the Isabella Pearl project. Payment by the Company to the contract miner is primarily based on unit prices for bank cubic meters and tonnes. The Contract Mining Agreement contains a lease related to mining equipment as well as other non-lease elements. The lease contained in the Contract Mining Agreement is an operating lease and accounted for as such. Expected future minimum payments, including both the future minimum lease payments and the other non-lease element payments for the Contract Mining Agreement over the term of the agreement are included in the table below. The expected future minimum payments are determined by rates within the Contract Mining Agreement, estimated tonnes moved and bank cubic meters for drilling and blasting. The Company was charged $1.4 million under the Contract Mining Agreement during 2018. The Company leases equipment and facilities under non-cancelable operating leases expiring at various dates through 2021. The Company also leases its office in Colorado Springs from a related party under a non-cancelable operating lease which expires in 2019. As discussed in Note 1 to the Consolidated Financial Statements (see "New Accounting Pronouncements-Leases"), the Company will adopt a new lease accounting standard on January 1, 2019. Upon adoption of the new standard, the Company’s operating leases will result in lease assets and lease liabilities being recognized on the consolidated balance sheet. Future minimum lease payments under operating leases are as follows: Payments due by Period Total 2019 2020 2021 2022 2023 and (in thousands) Operating leases $ 31,170 $ 16,259 $ 14,839 $ 72 $ - $ - Other Commitments As of December 31, 2018, the Company has equipment purchase commitments aggregating approximately $2.5 million. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Shareholders' Equity | |
Shareholders' Equity | 13. Shareholders’ Equity The Company declared and paid dividends of $1.1 million, or $0.02 per share during each of the years ended December 31, 2018 and 2017. During the year ended December 31, 2016, the Company declared and paid dividends of $1.7 million or $0.03 per share. On April 3, 2018, the Company entered into an At-The-Market Offering Agreement (the “ATM Agreement”) with an investment banking firm (“Agent”) pursuant to which the Agent agreed to act as the Company’s sales agent with respect to the offer and sale from time to time of the Company’s common stock having an aggregate gross sales price of up to $75.0 million (the “Shares”). The ATM Agreement will remain in full force and effect until the earlier of April 3, 2021, or the date that the ATM Agreement is terminated in accordance with the terms therein. An aggregate of 1,131,755 shares of the Company’s common stock were sold in the ATM Agreement during the year ended December 31, 2018, for net proceeds to the Company, after deducting the Agent’s commissions and other expenses, of $4.3 million. On January 6, 2017, the Company issued 59,642 shares of common stock as partial consideration for additional mineral rights for its Isabella Pearl project. At the time of issuance, the shares were valued at $5.03 per share, for an aggregate value of $0.3 million. On January 17, 2017, the Company issued 186,568 shares of common stock as partial consideration for mineral rights at the East Camp Douglas property. At the time of issuance, the shares were valued at $5.36 per share, for an aggregate value of $1.0 million. During the year ended December 31, 2016, the Company issued 130,169 shares of common stock as partial consideration for mineral rights at the Mina Gold property. At the time of issuance, the shares were valued at $6.53 per share, for an aggregate value of $0.9 million . During the year ended December 31, 2016, the Company issued 2,000,000 shares of common stock as partial consideration for its acquisition of Walker Lane and its Isabella Pearl project. In 2011, the Board of Directors approved a share repurchase program pursuant to which the Company may repurchase up to $20.0 million of its common stock from time to time in market transactions. There is no pre-determined end date associated with the share repurchase program. During 2018, 2017 and 2016, the Company did not repurchase any additional shares of common stock. |
Embedded Derivatives
Embedded Derivatives | 12 Months Ended |
Dec. 31, 2018 | |
Embedded Derivatives | |
Embedded Derivatives | 14. Embedded Derivatives Concentrate sales contracts contain embedded derivatives due to the provisional pricing terms for unsettled shipments. At the end of each reporting period, the Company records an adjustment to accounts receivable and revenue to reflect the mark-to-market adjustments for outstanding provisional invoices based on metal forward prices. Please see Note 19 for additional information. The following table summarizes the Company’s unsettled sales contracts at December 31, 2018, with the quantities of metals under contract subject to final pricing occurring through February 2019: Gold Silver Copper Lead Zinc (ounces) (ounces) (tonnes) (tonnes) (tonnes) Under contract 7,791 357,361 558 2,500 6,095 Average forward price (per ounce or tonne) $ 1,225 $ 14.46 $ 6,164 $ 2,001 $ 2,539 |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2018 | |
Employee Benefits | |
Employee Benefits | 15. Employee Benefits Effective October 2012, the Company adopted a profit sharing plan (the “Plan”) which covers all U.S. employees. The Plan meets the requirements of a qualified retirement plan pursuant to the provisions of Section 401(k) of the Internal Revenue Code. The Plan provides eligible employees the opportunity to make tax deferred contributions to a retirement trust account up to 45% of their qualified wages, subject to the IRS annual maximums. Any matching contribution by the Company on behalf of the employee is immediately vested; the matching contribution expense amounted to $0.1 million in 2018, $0.1 million in 2017 and $0.1 million in 2016. The unfunded matching contribution obligation was nil for the year ended December 31, 2018. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Stock-Based Compensation. | |
Stock-Based Compensation | 16. Stock-Based Compensation During 2016, the Company replaced its Amended and Restated Stock Option and Stock Grant Plan (the “Prior Plan”) with the Gold Resource Corporation 2016 Equity Incentive Plan (the “Incentive Plan”). The Incentive Plan provides for the issuance of five million shares of common stock in the form of incentive and non-qualified stock options, stock appreciation rights, RSUs, stock grants, stock units, performance shares, performance share units and performance cash. Additionally, pursuant to the terms of the Incentive Plan, any award outstanding under the Prior Plan that is terminated, expired, forfeited, or canceled for any reason, will be available for grant under the Incentive Plan. A total of 505,500 options with a term of 10 years were granted during the year ended December 31, 2018, of which 26,300 vested immediately and the remainder vest over a three-year period. A total of 120,002 RSUs were granted during the year ended December 31, 2018, of which 14,804 vest within six months and the remainder vest over a three- year period. Stock Options A summary of stock option activity under the Incentive Plan for the years ended December 31, 2018 and 2017 is presented below: Shares Weighted Weighted Average Aggregate Outstanding as of December 31, 2016 6,049,001 $ 7.48 5.36 $ 3,963 Granted 416,000 4.08 - Exercised (25,000) 2.30 - Expired (195,000) 8.99 - Forfeited - - - Outstanding as of December 31, 2017 6,245,001 $ 7.23 4.68 $ 4,040 Granted 505,500 5.41 - Exercised (1,412,926) 3.13 - Expired (73) 4.60 - Forfeited (77,667) 3.44 - Outstanding as of December 31, 2018 5,259,835 $ 8.21 4.82 $ 1,396 Vested and exercisable as of December 31, 2018 4,375,629 $ 8.91 3.98 $ 1,289 The weighted-average fair value of options per share granted during the years ended December 31, 2018, 2017, and 2016 was $3.04, $2.25 and $1.96, respectively. The total intrinsic value of options exercised during the years ended December 31, 2018, 2017, and 2016, was $2.6 million , $0.1 million and $0.6 million, respectively. The total fair value of options vested during the years ended December 31, 2018, 2017 and 2016 was $0.9 million, $0.8 million and $1.3 million, respectively. During the year ended December 31, 2018, stock options to purchase an aggregate of 1,412,926 shares of the Company’s common stock were exercised. Of that amount, 945,000 of the options were exercised on a net exercise basis, resulting in 244,345 shares being delivered. The remaining 467,926 options were exercised for cash proceeds of $1.3 million . During the years ended December 31, 2017 and 2016, the Company received nil and $0.4 million, respectively, in cash proceeds from stock option exercises. The following table summarizes information about stock options outstanding at December 31, 2018: Outstanding Exercisable Range of Exercise Prices Number of Options Weighted Average Weighted Number of Weighted $0.00 - $6.25 2,734,335 5.14 $ 3.59 2,079,329 $ 3.47 $6.25 -$12.50 1,065,500 4.89 $ 8.30 836,300 $ 8.69 $12.50 - $18.75 1,340,000 3.77 $ 16.46 1,340,000 $ 16.46 $18.75 - $25.00 120,000 3.68 $ 20.51 120,000 $ 20.51 5,259,835 4.82 $ 8.21 4,375,629 $ 8.91 The assumptions used to determine the value of stock-based awards under the Black-Scholes method are summarized below: Year ended December 31, 2018 2017 2016 Risk-free interest rate 2.72 % 1.94 % % Dividend yield 0.40 % 0.53 % 0.46 % Expected volatility 67.11 % 67.70 % 62.74 % Expected life in years 5 5 5 Restricted Stock Units A summary of RSU activity under the Incentive Plan for the years ended December 31, 2018 and 2017 is presented below: Shares Weighted Weighted Average Aggregate Nonvested as of December 31, 2016 181,738 $ - 1.82 $ 791 Granted 105,945 - - - Vested (78,400) - - - Expired - - - - Forfeited - - - - Nonvested as of December 31, 2017 209,283 $ - 1.91 $ 920 Granted 120,002 - - - Vested (89,921) - - - Expired - - - - Forfeited (16,610) - - - Nonvested as of December 31, 2018 222,754 $ - 1.77 $ 891 The weighted-average fair value per share of RSUs granted during the years ended December 31, 2018 and 2017, and 2016 was $6.89, $4.11 and $4.60, respectively. The total intrinsic value of RSUs vested during the years ended December 31, 2018, 2017, and 2016 was $0.5 million, $0.3 million and nil, respectively. Stock-Based Compensation Expense Stock-based compensation expense for stock options and RSUs is as follows: Year ended December 31, 2018 2017 2016 (in thousands) Stock options $ 993 $ 829 $ 1,036 Restricted stock units 504 363 204 Total $ 1,497 $ 1,192 $ 1,240 Total stock-based compensation related to stock options and RSUs has been allocated between production costs, general and administrative expenses, and exploration expense as follows: Year ended December 31, 2018 2017 2016 (in thousands) Production costs $ 72 $ 99 $ 186 General and administrative expenses 1,295 1,029 1,040 Exploration expense 130 64 14 Total $ 1,497 $ 1,192 $ 1,240 The estimated unrecognized stock-based compensation expense from unvested options and RSUs as of December 31, 2018 was approximately $1.9. million and $0.9 million, respectively, and is expected to be recognized over the remaining vesting periods of up to three years. |
Other Expense, Net
Other Expense, Net | 12 Months Ended |
Dec. 31, 2018 | |
Other Expense, Net | |
Other Expense, Net | 17. Other Expense (Income), Net During the years ended December 31, 2018, 2017 and 2016, other expense (income) consisted of the following: Year ended December 31, 2018 2017 2016 (in thousands) Unrealized currency exchange loss (gain) $ 230 $ 983 $ (267) Realized currency exchange loss (gain) 707 (457) (261) Unrealized loss (gain) from gold and silver rounds/bullion, net (1) 134 (493) (411) Loss (gain) on investments, net (1) (2) 195 - (348) Loss on disposal of fixed assets 389 474 578 Gain on insurance reimbursement - - (620) Increase in reserve for inventory obsolescence 114 106 545 Increase in allowance for doubtful accounts receivable 1,360 - - Other (income) expense (18) 553 224 Total $ 3,111 $ 1,166 $ (560) (1) Gains and losses due to changes in fair value are non-cash in nature until such time that they are realized through cash transactions. (2) During 2018, the Company wrote off its equity investment and recognized a loss of $195. During 2016, the Company sold its current investment in equity and realized a gain of $348. For additional information regarding our fair value measurements and investments, please see Note 19 . |
Net Income per Common Share
Net Income per Common Share | 12 Months Ended |
Dec. 31, 2018 | |
Net Income per Common Share | |
Net Income per Common Share | 18. Net Income per Common Share Basic income per common share is calculated based on the weighted average number of shares of common stock outstanding for the period. Diluted income per common share is calculated based on the assumption that stock options outstanding, which have an exercise price less than the average market price of the Company’s common stock during the period, would have been exercised on the later of the beginning of the period or the date granted and that the funds obtained from the exercise were used to purchase common shares at the average market price during the period. All the Company’s restricted stock units are considered to be dilutive. The effect of the Company’s dilutive securities is calculated using the treasury stock method and only those instruments that result in a reduction in net income per common share are included in the calculation. Options to purchase 3.6 million, 3. 1 million, and 2.8 million shares of common stock at weighted average exercise prices of $10.44, $11.26, and $12.39 were outstanding as of December 31, 2018, 2017, and 2016, respectively, but were not included in the computation of diluted weighted average common shares outstanding, as the exercise price of the options exceeded the average price of the Company’s common stock during those periods, and therefore were anti-dilutive. Basic and diluted net income per common share is calculated as follows: Year ended December 31, 2018 2017 2016 Net income (in thousands) $ 9,288 $ 4,150 $ 4,387 Basic weighted average shares of common stock outstanding 57,534,830 56,854,670 55,140,237 Dilutive effect of share-based awards 834,836 740,323 584,969 Diluted weighted average common shares outstanding 58,369,666 57,594,993 55,725,206 Net income per share: Basic and diluted $ 0.16 $ 0.07 $ |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Measurement | |
Fair Value Measurement | 19. Fair Value Measurement Fair value accounting establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below: Level 1 Level 2 Level 3 As required by accounting guidance, assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The following tables set forth certain of the Company’s assets measured at fair value by level within the fair value hierarchy as of December 31, 2018 and 2017: 2018 2017 Input Hierarchy Level (in thousands) Cash and cash equivalents: Bank deposits $ 7,762 $ 22,390 Level 1 Gold and silver rounds/bullion 3,637 3,812 Level 1 Accounts receivable, net: Receivables from provisional concentrate sales 1,744 2,884 Level 2 $ 13,143 $ 29,086 Cash and cash equivalents consist primarily of cash deposits and are valued at cost, which approximates fair value. Gold and silver rounds/bullion consist of precious metals used for investment purposes and in the dividend program which are valued using quoted market prices. Please see Note 3 for additional information. During the year ended December 31, 2018, the Company became aware of adverse events that affected the fair value of its non-current investment in equity securities of $0.2 million and as such, adjusted the investment to nil as of December 31, 2018. Trade accounts receivable include amounts due to the Company for deliveries of concentrates and doré sold to customers, net of allowance for doubtful accounts of $1.4 million. Concentrate sales contracts provide for provisional pricing as specified in such contracts. These sales contain an embedded derivative related to the provisional pricing mechanism which is bifurcated and accounted for as a derivative. At the end of each reporting period, the Company records an adjustment to sales to reflect the mark-to-market of outstanding provisional invoices based on the forward price curve. Because these provisionally priced sales have not yet settled as of the reporting date, the mark-to-market adjustment related to these invoices is included in accounts receivable as of each reporting date. At December 31, 2018 and 2017, the Company had an unrealized loss of $0.1 million and an unrealized gain of $0.4 million, respectively, included in its accounts receivable on the accompanying Consolidated Balance Sheets related to mark-to-market adjustments. Please see Note 14 for additional information . Gains and losses related to changes in the fair value of these financial instruments were included in the Company’s consolidated statements of operations as shown in the following (in thousands) : Year ended December 31, Statement of 2018 2017 2016 Operations Classification Realized/unrealized derivative (loss) gain, net $ (4,209) $ 1,899 $ 1,356 Sales, net Gold and silver rounds/bullion (loss) gain $ (148) $ 282 $ 411 Other expense, net Investment (loss) gain $ (195) $ - $ 351 Other expense, net Realized/Unrealized Derivatives, net The following tables summarize the Company’s realized/unrealized derivatives, net (in thousands) : Gold Silver Copper Lead Zinc Total Year ended December 31, 2018 Realized loss $ (191) $ (374) $ (268) $ (788) $ (2,081) $ (3,702) Unrealized gain (loss) 222 272 (162) (39) (800) (507) Total realized/unrealized derivatives, net $ 31 $ (102) $ (430) $ (827) $ (2,881) $ (4,209) Gold Silver Copper Lead Zinc Total Year ended December 31, 2017 Realized gain (loss) $ 154 $ 151 $ 128 $ 131 $ 798 $ 1,362 Unrealized (loss) gain (93) (183) 64 72 677 537 Total realized/unrealized derivatives, net $ 61 $ (32) $ 192 $ 203 $ 1,475 $ 1,899 Gold Silver Copper Lead Zinc Total Year ended December 31, 2016 Realized gain (loss) $ 72 $ 330 $ (78) $ 127 $ 432 $ 883 Unrealized gain 38 159 125 84 67 473 Total realized/unrealized derivatives, net $ 110 $ 489 $ 47 $ 211 $ 499 $ 1,356 |
Supplementary Cash-Flow Informa
Supplementary Cash-Flow Information | 12 Months Ended |
Dec. 31, 2018 | |
Supplementary Cash-Flow Information | |
Supplementary Cash-Flow Information | 20. Supplementary Cash Flow Information During the years ended December 31, 2018, 2017, and 2016, other operating adjustments and write-downs within the net cash provided by operations on the statement of cash flows consisted of the following: 2018 2017 2016 (in thousands) Unrealized loss (gain) on gold and silver rounds/bullion $ 134 $ (493) $ (411) Unrealized foreign currency exchange loss (gain) 230 983 (267) Loss (gain) on investments 195 - (348) Loss on disposition of fixed assets 389 474 578 Decrease in reserve for inventory obsolescence 114 106 545 Change in allowance for doubtful accounts receivable 1,360 - - Other 113 215 201 Total other operating adjustments $ 2,535 $ 1,285 $ 298 |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting | |
Segment Reporting | 21. Segment Reporting The Company has organized its operations into two geographic regions. The geographic regions include Oaxaca, Mexico and Nevada, U.S.A. and represent the Company’s operating segments. 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 Company’s business activities that are not considered operating segments are included in Corporate and Other. The financial information relating to the Company’s segments is as follows ( in thousands ): Mexico Nevada Corporate and Other Consolidated Year ended December 31, 2018 Revenue $ 115,308 $ - $ - $ 115,308 Exploration expense 2,217 2,314 172 4,703 Net income (loss) 20,631 (2,585) (8,758) 9,288 Capital expenditures (1) 24,039 20,133 29 44,201 Mexico Nevada Corporate and Other Consolidated Year ended December 31, 2017 Revenue $ 110,156 $ - $ - $ 110,156 Exploration expense 1,288 2,916 145 4,349 Net income (loss) 20,379 (2,423) (13,806) 4,150 Capital expenditures (2) 21,760 10,087 9 31,856 Mexico Nevada Corporate and Other Consolidated Year ended December 31, 2016 Revenue $ 83,227 $ - $ - $ 83,227 Exploration expense 1,992 2,057 265 4,314 Net income (loss) 14,705 (1,292) (9,026) 4,387 Capital expenditures (3) 12,356 13,956 170 26,482 (1) Includes an increase in accrued capital expenditures of $3,302 and non-cash additions of $823; consolidated capital expenditures on a cash basis were $40,470. (2) Includes an increase in accrued capital expenditures of $1,041 and non-cash additions of $5,383; consolidated capital expenditures on a cash basis were $25,432. (3) Includes a decrease in accrued capital expenditures of $2,868 and non-cash additions of $14,210; consolidated capital expenditures on a cash basis were $15,140. Total asset balances, excluding intercompany balances at December 31, 2018 and December 31, 2017 are as follows: 2018 2017 (in thousands) Mexico $ 91,590 $ 87,739 Nevada 46,677 25,741 Corporate and Other 12,064 19,443 Consolidated $ 150,331 $ 132,923 |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Data | |
Quarterly Financial Data | 22. Quarterly Financial Data (Unaudited) The following represents selected information from the unaudited quarterly consolidated statements of operations for the years ended December 31, 2018 and 2017: 2018 First Quarter Second Quarter Third Quarter Fourth Quarter (in thousands, except per common share data) Sales, net $ 32,151 $ 30,768 $ 24,258 $ 28,131 Mine gross profit $ 12,920 $ 9,521 $ 3,293 $ 7,956 Net income (loss) $ 5,457 $ 3,754 $ (781) $ 858 Net income (loss) per common share: Basic $ 0.10 $ 0.07 $ (0.01) $ 0.01 Diluted $ 0.09 $ 0.06 $ (0.01) $ 0.01 Weighted average shares outstanding: Basic 57,120,077 57,315,472 57,642,966 58,049,972 Diluted 57,911,299 58,314,123 57,642,966 58,571,874 2017 First Quarter Second Quarter Third Quarter Fourth Quarter (in thousands, except per common share data) Sales, net $ 24,336 $ 21,391 $ 31,122 $ 33,307 Mine gross profit $ 10,416 $ 5,226 $ 11,201 $ 15,272 Net income (loss) $ 4,376 $ 864 $ 4,581 $ (5,671) Net income (loss) per common share: Basic and diluted $ 0.08 $ 0.02 $ 0.08 $ (0.11) Weighted average shares outstanding: Basic 56,796,751 56,839,823 56,888,115 56,892,583 Diluted 57,991,663 57,375,938 57,455,805 57,452,314 During the fourth quarter of the year ended December 31, 2017, the Company made adjustments to provision for income taxes which had a significant effect on the full year’s results. Please see Note 5 for more information. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events | |
Subsequent Events | 23. Subsequent Events Subsequent to December 31, 2018, the Company sold 2,537,130 shares under its ATM agreement for net proceeds of $10.8 million. |
Nature of Operations and Summ_2
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Nature of Operations and Summary of Significant Accounting Policies | |
Nature Of Operations | Nature of Operations Gold Resource Corporation (the “Company”) was organized under the laws of the State of Colorado on August 24, 1998. The Company is a producer of metal concentrates that contain gold, silver, copper, lead and zinc, and doré containing gold and silver at the Aguila and Alta Gracia projects in the southern state of Oaxaca, Mexico (“Oaxaca Mining Unit”). The Aguila project includes the Arista underground mine and processing facility, which are currently in operation. The Alta Gracia project includes the Mirador underground mine which began operations in 2017. The Company also performs exploration and development work on our portfolio of precious metal properties in Nevada, United States of America (“Nevada Mining Unit”) and continues to evaluate other properties for possible acquisition. |
Basis of Presentation | Basis of Presentation The consolidated financial statements included herein are expressed in United States dollars, and conform to United States generally accepted accounting principles (“U.S. GAAP”). The consolidated financial statements include the accounts of the Company, its Mexican subsidiary, Don David Gold Mexico S.A. de C.V. (“Don David Gold Mexico”) and its wholly-owned United States subsidiaries GRC Nevada Inc. and Walker Lane Minerals Corp. (“Walker Lane”). Intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amount 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 periods. Management routinely makes judgments and estimates about the effects of matters that are inherently uncertain and bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances. Actual results could differ from these estimates. |
Reclassifications | Reclassifications Certain amounts presented in prior periods have been reclassified to conform to the current period presentation. The reclassifications had no material effect on the Company’s results of operations or financial condition. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of all cash balances and highly liquid investments with a remaining maturity of three months or less when purchased and are carried at cost. |
Gold and Silver Rounds/Bullion | Gold and Silver Rounds/Bullion From time to time, the Company may purchase gold and silver bullion on the open market in order to diversify its treasury and provide an option for shareholders to convert their dividends into bullion. The purchased gold and silver bullion is carried at quoted market value prices based on the daily London P.M. fix as of the balance sheet date. The Company considers bullion a highly-liquid investment. |
Accounts Receivable, net | Accounts Receivable, net Accounts receivable consists of trade receivables, which are recorded net of allowance for doubtful accounts, from the sale of doré and metals concentrates, as well an embedded derivative based on mark-to-market adjustments for outstanding provisional invoices based on metal forward prices. Please see Note 14 and Note 19 for additional information related to the embedded derivative. As of December 31, 2018 and 2017, our allowance for doubtful accounts was $1.4 million and nil, respectively. |
Inventories | Inventories The major inventory categories are set forth below: Stockpile Inventories : Stockpile inventories represent ore that has been mined and is available for further processing. Stockpiles are measured by estimating the number of tonnes added and removed from the stockpile, an estimate of the contained metals (based on assay data) and the estimated metallurgical recovery rates. Costs are allocated to stockpiles based on relative values of material stockpiled and processed using current mining costs incurred, including applicable overhead, depreciation and amortization relating to mining operations. Material is removed at each stockpile’s average cost per tonne. Stockpiles are carried at the lower of average cost or net realizable value. Net realizable value represents the estimated future sales price of the product based on current and long-term metals prices, less the estimated costs to complete production and bring the product to sale. The current portion of stockpiles is determined based on the expected amounts to be processed within the next 12 months. Stockpiles not expected to be processed within the next 12 months are classified as long term. As of December 31, 2018, all stockpiles were classified as current. Concentrate Inventories : Concentrates inventories include metal concentrates located either at the Company’s facilities or in transit to its customer’s port. Inventories consist of copper, lead and zinc metal concentrates, which also contain gold and silver mineralization. Concentrate inventories are carried at the lower of cost of production or net realizable value based on current metals prices. Doré Inventory: Doré includes gold and silver doré bars held at the Company’s facility. Doré inventories are carried at the lower of cost of production or net realizable value based on current metals prices. Leach Pad: Ore on leach pad represents ore that has been mined and placed on the leach pad where a solution is applied to the surface of the heap to dissolve the gold or silver. Costs are added to ore on leach pads based on current mining costs, including applicable depreciation and amortization relating to mining operations. Costs are removed from ore on leach pads as ounces are recovered based on the average cost per estimated recoverable ounce of gold or silver on the leach pad. Estimates of recoverable ore on the leach pad are calculated from the quantities of ore placed on the leach pad (measured tonnes added to the leach pad), the grade of ore placed on the leach pad (based on assay data) and a recovery percentage (based on ore type). Although the quantities of recoverable ore placed on the leach pad are reconciled by comparing the grades of ore placed on pads to the quantities of metal actually recovered (metallurgical balancing), the nature of the leaching process inherently limits the ability to precisely monitor inventory levels. As a result, the metallurgical balancing process is constantly monitored and estimates are refined based on actual results over time. Variations between actual and estimated quantities resulting from changes in assumptions and estimates that do not result in write-downs to net realizable value are accounted for on a prospective basis. Materials and Supplies Inventories : Materials and supplies inventories consist of chemical reagents, parts, fuels and other materials and supplies. Cost includes applicable taxes and freight. Materials and supplies inventory is carried at lower of average cost or net realizable value. Write-downs of inventory are charged to expense. |
IVA Taxes Receivable and Payable | IVA Taxes Receivable and Payable In Mexico, value added (“IVA”) taxes are assessed on purchases of materials and services and sales of products. Businesses are generally entitled to recover the taxes they have paid related to purchases of materials and services, either as a refund or as a credit against future taxes payable. Likewise, businesses owe IVA taxes as the business sells a product and collects IVA taxes from its customers. Amounts recorded as IVA taxes in the consolidated financial statements represent the net estimated IVA tax receivable or payable, since there is a legal right of offset of IVA taxes. |
Property, Plant and Mine Development | Property, Plant and Mine Development Land and Mineral Rights : The costs of acquiring land and mineral rights are considered tangible assets. Administrative and holding costs to maintain an exploration property are expensed as incurred. If a mineable mineral deposit is discovered, such capitalized costs are amortized when production begins using the units of production (“UOP”) method. If no mineable mineral deposit is discovered or such rights are otherwise determined to have diminished value, such costs are expensed in the period in which the determination is made. Mine Development : The costs include engineering and metallurgical studies, drilling and other related costs to delineate an ore body, the building of access ways, shafts, lateral access, drifts, ramps and other infrastructure. Costs incurred before mineralization is classified as proven and probable reserves are expensed and classified as exploration expenses. Capitalization of mine development project costs, that meet the definition of an asset, begins once mineralization is classified as proven and probable reserves. Drilling costs incurred during the production phase for operational ore control are allocated to inventory costs and then included as a component of production costs. All other drilling and related costs are expensed as incurred. Mine development costs are amortized using the UOP method based on estimated recoverable ounces in proven and probable reserves. Property and Equipment : All items of property and equipment are carried at cost. Normal maintenance and repairs are expensed as incurred while expenditures for major maintenance and improvements are capitalized. Gains or losses on disposition are recognized in other expense (income). Construction in Progress : Expenditures for new facilities or equipment are capitalized and recorded at cost. Once completed and ready for its intended use, the asset is transferred to property and equipment to be depreciated or amortized . Depreciation and Amortization : Capitalized costs are depreciated or amortized using the straight-line or UOP method at rates sufficient to depreciate such costs over the shorter of estimated productive lives of such assets or the useful life of the individual assets. The estimates for mineral reserves are a key component in determining the UOP depreciation rates. The estimates of reserves may change, possibly in the near term, resulting in changes to depreciation and amortization rates in future reporting periods. The following are the estimated economic lives of depreciable assets: Range of Lives Asset retirement costs UOP Furniture, computer and office equipment 3 to 10 years Light vehicles and other mobile equipment 4 years Machinery and equipment UOP to 4 years Mill facilities and related infrastructure UOP Mine development UOP |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company evaluates its long-lived assets for impairment when events or changes in circumstances indicate that the related carrying amounts may not be recoverable. Asset impairment is considered to exist if the total estimated future cash flows on an undiscounted basis are less than the carrying amount of the asset. If an impairment is indicated, a determination is made whether an impairment has occurred and any impairment losses are measured as the excess of carrying value over the total discounted estimated future cash flows, or the application of an expected fair value technique in the absence of an observable market price and are charged to expense on the Company’s consolidated statements of operations. In estimating future cash flows, assets are grouped at the lowest level for which there are identifiable cash flows that are largely independent of future cash flows from other asset groups. Existing reserves and other mineralized material are included when estimating the fair value in determining whether the assets are impaired. The Company’s estimates of future cash flows are based on numerous assumptions including expected gold and other commodity prices, production levels, capital requirements and estimated salvage values. It is possible that actual future cash flows will be significantly different than the estimates, as actual future quantities of recoverable minerals, gold and other commodity prices, production levels and costs and capital requirements are each subject to significant risks and uncertainties. |
Treasury Stock | Treasury Stock Treasury stock represents shares of the Company’s common stock which have been repurchased on the open market at the prevailing market price at the time of purchase and have not been cancelled. Treasury stock is shown at cost as a separate component of equity. |
Revenue recognition | Revenue Recognition The Company recognizes revenue from doré and concentrate sales. Concentrate sales : C oncentrate sales are initially recorded based on 100% of the provisional sales prices, net of treatment and refining charges, at the time of delivery to the customer at which point the performance obligations are satisfied and control of the product is transferred to the customer. Adjustments to the provisional sales prices are made to take into account the mark-to-market changes based on the forward prices of metals until final settlement occurs. The changes in price between the provisional sales price and final sales price are considered an embedded derivative that is required to be separated from the host contract for accounting purposes. The host contract is the receivable from the sale of the concentrates at the quoted metal prices at the time of delivery. The embedded derivative, which does not qualify for hedge accounting, is adjusted to market through revenue each period prior to final settlement. Market changes in the prices of metals between the delivery and final settlement dates will result in adjustments to revenues related to previously recorded sales of concentrate. Sales are recorded net of charges for treatment, refining, smelting losses and other charges negotiated with the buyer. These charges are estimated upon delivery of concentrates based on contractual terms and adjusted to reflect actual charges at final settlement. Historically, actual charges have not varied materially from the Company’s initial estimates . Doré sales : Doré sales are recognized upon the satisfaction of performance obligations, which occurs when control of the doré transfers to the customer. Transfer of control occurs once the customer takes possession of the doré. Doré sales are recorded using quoted metal prices, net of refining charges . |
Production Costs | Production Costs Production costs include labor and benefits, royalties, concentrate and doré shipping costs, mining subcontractors, fuel and lubricants, legal and professional fees related to mine operations, stock-based compensation attributable to mine workers, materials and supplies, repairs and maintenance, explosives, housing and food, insurance, reagents, travel, medical services, security equipment, office rent, tools and other costs that support mining operations. |
Exploration Costs | Exploration Costs Exploration costs are charged to expense as incurred. Costs to identify new mineral resources and to evaluate potential resources are considered exploration costs. |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for stock-based compensation under the fair value recognition and measurement provisions of U.S. GAAP. Those provisions require all stock-based payments, including grants of stock options and restricted stock units (“RSUs”), to be measured based on the grant date fair value of the awards, with the resulting expense generally recognized on a straight-line basis in the consolidated statements of operations over the period during which services are performed in exchange for the award. The majority of the awards are earned over a service period of three years . The Company's estimates may be impacted by certain variables including, but not limited to, stock price volatility, employee stock option exercise behaviors, additional stock option grants, and estimates of forfeitures. |
Reclamation and Remediation Costs | Reclamation and Remediation Costs Reclamation costs are allocated to expense over the life of the related assets and are periodically adjusted to reflect changes in the estimated present value resulting from the passage of time and revisions to the estimates of either the timing or amount of the reclamation and remediation costs. Reclamation obligations are based in part on when the spending for an existing environmental disturbance will occur. The Company reviews, at least on an annual basis, the reclamation obligation at each mine. Prior to 2014, the Company had been recognizing only reclamation and remediation obligations and all associated asset retirement costs were written off due to the exploration stage status of the Company. In 2014, the Company became a production stage company and therefore capitalized asset retirement costs and recorded an asset retirement obligation. Please see Note 9 for additional information. Accounting for reclamation and remediation obligations requires management to make estimates unique to each mining operation of the future costs expected to be incurred to complete the reclamation and remediation work required to comply with existing laws and regulations. Actual costs incurred in future periods could differ from amounts estimated. Additionally, future changes to environmental laws and regulations could increase the extent of reclamation and remediation work required. Any such increases in future costs could materially impact the amounts charged to operations for reclamation and remediation. |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Accumulated other comprehensive loss is presented in the consolidated statements of changes in shareholders’ equity. Accumulated other comprehensive loss is composed of foreign currency translation adjustment effects related to the historical adjustment when the functional currency was the Mexican peso for our Mexico subsidiary. This loss will remain on our consolidated balance sheet until the sale or dissolution of our Mexico subsidiary. |
Income and Mining Royalty Taxes | Income and Mining Royalty Taxes Income taxes are computed using the asset and liability method. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial and tax reporting purposes and the effect of net operating loss and foreign tax credit carry-forwards using enacted tax rates in effect in the years in which the differences are expected to reverse. Deferred tax assets are evaluated to determine if it is more likely than not that they will be realized. Please see Note 5 for additional information. |
Net Income Per Share | Net Income Per Share Basic earnings per share is calculated based on the weighted average number of common shares outstanding for the period. Diluted income per share reflects the dilution that could occur if potentially dilutive securities, as determined using the treasury stock method, are converted into common stock. Potentially dilutive securities are excluded from the calculation when their inclusion would be anti-dilutive, such as periods when a net loss is reported or when the exercise price of the instrument exceeds the average fair market value. |
Foreign Currency | Foreign Currency The functional currency for all of the Company’s subsidiaries is the United States dollar (“U.S. dollar”). |
Concentration of Credit Risk | Concentration of Credit Risk The Company has considered and assessed the credit risk resulting from its concentrate sales and doré sales arrangements with its customers. In the event that the Company’s relationships with its customers are interrupted for any reason, the Company believes that it would be able to locate another entity to purchase its metals concentrates and doré bars; however, any interruption could temporarily disrupt the Company’s sale of its products and adversely affect operating results. The Company’s Aguila and Alta Gracia projects, which are located in the State of Oaxaca, Mexico, accounted for 100% of the Company’s total sales for the years ended December 31, 2018, 2017 and 2016. Some of the Company’s operating cash balances are maintained in accounts that currently exceed federally insured limits. The Company believes that the financial strength of the depositing institutions mitigates the underlying risk of loss. To date, these concentrations of credit risk have not had a significant impact on the Company’s financial position or results of operations. |
Recently Accounting Pronouncements | Recently Adopted Accounting Pronouncements Accounting Standards Update No. 2014-09—Revenue from Contracts with Customers (“Topic 606”). On May 28, 2014, the Financial Accounting Standards Board (“FASB”) issued guidance that requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. This ASU was further amended in August 2015, March 2016, April 2016, May 2016 and December 2016 by ASU No. 2015-14, No. 2016-08, No. 2016-10, No. 2016-12 and No. 2016-20, respectively. The guidance provides a five-step approach to be applied to all contracts with customers and also requires expanded disclosures about revenue recognition. On January 1, 2018, the Company adopted the new accounting guidance for all contracts using the retrospective approach. The adoption of this new guidance did not result in any changes to previously reported revenue amounts. Please see Note 2 for more information. In March 2018, the Company adopted Accounting Standards Update No. 2018-05—Income Taxes (“Topic 740”): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 , which updates the income tax accounting in U.S. GAAP to reflect the Securities and Exchange Commission (“SEC”) interpretive guidance released on December 22, 2017, when the Tax Cuts and Jobs Act was signed into law. Please see Note 5 for additional information. Recently Issued Accounting Standards Updates Accounting Standards Update No. 2016-02—Leases (“Topic 842”). I n February 2016, the FASB issued a new standard regarding leases. Lessees will be required to recognize virtually all of their leases on the balance sheet, by recording a right-of-use asset and a lease liability. Public business entities are required to adopt the new leasing standard for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. For calendar year-end public entities, this means an adoption date of January 1, 2019. Early adoption is permitted. The Company is finalizing its assessment of the new guidance and the impact it will have on its consolidated financial statements and disclosures. The Company will adopt certain practical expedients that allows us to not reassess: (1) whether any expired or existing contracts are or contain leases, (2) lease classification for any expired or existing leases and (3) initial direct costs for any expired or existing leases. The Company will adopt this guidance at the adoption date of January 1, 2019, using the transition method that allows for the initial application of Topic 842 as of January 1, 2019 and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company does not expect to recognize a material adjustment to retained earnings upon adoption. The Company is additionally assessing the impact of Topic 842 on its internal controls over financial reporting. The Company determines if an arrangement is a lease at inception. The Company leases equipment under operating and capital leases. The Company leases its office locations under operating leases. The Company’s current capital lease obligations consist of equipment. The capital leases addressed in Note 11 to the consolidated financial statements are expected to be accounted for as finance leases upon adoption of Topic 842, and the Company does not expect any significant changes to the accounting for such leases upon adoption. Under Topic 842, operating leases result in the recognition of right-of-use (“ROU”) assets and lease liabilities on the balance sheet. ROU assets represent the Company’s right to use the leased asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments. Under Topic 842, operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, upon adoption of Topic 842, the Company will use its estimated incremental borrowing rate at the commencement date to determine the present value of lease payments. The operating lease ROU assets will also include any lease payments made and exclude lease incentives. The lease terms may include options to extend or terminate the lease that are reasonably certain to be exercised. Lease expense under Topic 842 will be recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, and the Company expects to account for the lease and non-lease components as separate components under Topic 842. The adoption of Topic 842 will have a material impact on Company’s Consolidated Balance Sheet due to the recognition of the ROU assets and lease liabilities. The adoption of Topic 842 is not expected to have a material impact on the Company’s Consolidated Statement of Operations or the Company’s Consolidated Cash Flow Statement. Because of the transition method the Company will use to adopt Topic 842, Topic 842 will not be applied to periods prior to adoption and the adoption of Topic 842 will have no impact on the Company’s previously reported results. The future minimum lease payments for the Company’s operating leases as of December 31, 2018 are discussed in Note 12 to the Consolidated Financial Statements. Upon adoption of Topic 842, the Company expects to recognize operating lease ROU assets and lease liabilities of approximately $13.8 million which reflects the present value of future lease payments. After the adoption of Topic 842, the Company will first report the operating lease ROU assets and lease liabilities as of March 31, 2019. The components of the Company’s future lease payments are discussed in Note 12 to the Consolidated Financial Statements. The capital leases addressed in Note 11 are expected to be accounted for as finance leases upon adoption of Topic 842, and the Company does not expect any significant changes to the accounting for such leases upon adoption. Accounting Standards Update No. 2018-07—Compensation — Stock Compensation (“Topic 718”): Improvements to Non-employee Share-Based Payment Accounting (“ASU 2018-07”). In June 2018, the FASB issued new guidance regarding accounting for stock compensation. The new guidance expands the scope of Topic 718 to include all share-based payment transactions for acquiring goods or services from non-employees. ASU 2018-07 specifies that Topic 718 applies to all share-based payment transactions in which the grantor acquires goods or services to be used or consumed in its own operations by issuing share-based payment awards. ASU 2018-07 also clarifies that Topic 718 does not apply to share-based payments used to effectively provide (1) financing to the issuer or (2) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under ASC 606. ASU 2018-07 is effective for public entities beginning December 1, 2019, with early adoption permitted, but no earlier than the adoption of ASC 606. The Company does not expect the adoption of this guidance to have material impact on its consolidated financial statements. Accounting Standards Update No. 2018-09—Codification Improvements (“ASU 2018-09”). In July 2018, the FASB issued new guidance which makes changes to a variety of topics to clarify, correct errors in, or make minor improvements to the Accounting Standards Codification (“ASC’). The transition and effective date guidance is based on the facts and circumstances of each amendment. Some of the amendments do not require transition guidance and will be effective upon issuance of ASU 2018-09. However, many of the amendments do have transition guidance with effective dates for annual periods beginning after December 15, 2018. The Company does not expect the adoption of this guidance to have material impact on its consolidated financial statements. |
Nature of Operations and Summ_3
Nature of Operations and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Nature of Operations and Summary of Significant Accounting Policies | |
Estimated Economic Lives | Range of Lives Asset retirement costs UOP Furniture, computer and office equipment 3 to 10 years Light vehicles and other mobile equipment 4 years Machinery and equipment UOP to 4 years Mill facilities and related infrastructure UOP Mine development UOP |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue | |
Revenue from the sale of dore and concentrate | Year ended December 31, 2018 2017 2016 (in thousands) Doré sales, net Gold $ 6,250 $ 6,270 $ 11,384 Silver 1,348 159 139 Less: Refining charges (118) (63) (105) Total doré sales, net 7,480 6,366 11,418 Concentrate sales Gold 22,750 25,526 20,490 Silver 22,972 27,567 28,803 Copper 9,919 6,646 4,697 Lead 15,100 11,568 7,225 Zinc 46,743 38,281 25,424 Less: Treatment and refining charges (5,447) (7,697) (16,186) Total concentrate sales, net 112,037 101,891 70,453 Realized/unrealized embedded derivative (loss)/gain, net (4,209) 1,899 1,356 Total sales, net $ 115,308 $ 110,156 $ 83,227 |
Gold and Silver Bullion (Tables
Gold and Silver Bullion (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Gold and Silver Bullion | |
Schedule of Company's Holdings | 2018 2017 Ounces Per Ounce Amount Ounces Per Ounce Amount (in thousands) (in thousands) Gold 1,888 $ 1,279 $ 2,415 1,905 $ 1,291 $ 2,459 Silver 79,864 $ 15.30 1,222 80,224 $ 16.87 1,353 Total holdings $ 3,637 $ 3,812 |
Current Inventories (Tables)
Current Inventories (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Current Inventories | |
Summary of Inventories | 2018 2017 (in thousands) Stockpiles - underground mine $ 2,365 $ 1,450 Stockpiles - open pit mine 414 101 Leach pad 376 - Concentrates 1,231 1,973 Doré 1,289 394 Subtotal - product inventory 5,675 3,918 Materials and supplies (1) 8,667 7,718 Total $ 14,342 $ 11,636 Net of reserve for obsolescence of $857 and $743, respectively. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Taxes | |
Components of net income before income taxes and extraordinary item | Years Ended December 31, 2018 2017 2016 (in thousands) U.S. Operations $ (9,378) $ (8,142) $ (7,001) Foreign Operations, Mexico 25,929 36,620 16,147 Total income before income taxes $ 16,551 $ 28,478 $ 9,146 |
Calculation of Income Taxes Provision | Years ended December 31, 2018 2017 2016 (in thousands) Current taxes: Federal $ - $ 9 $ 353 State - - - Foreign 7,763 9,327 5,961 Total current taxes $ 7,763 $ 9,336 $ 6,314 Deferred taxes: Federal $ (1,692) $ 4,923 $ (1,715) State - - - Foreign 1,192 10,069 160 Total deferred taxes $ (500) $ 14,992 $ (1,555) Total income tax provision $ 7,263 $ 24,328 $ 4,759 |
Differences between provision for income taxes and income tax determined | Years Ended December 31, 2018 2017 2016 (in thousands) Tax at statutory rates $ 3,476 $ 9,967 $ 3,110 Foreign rate differential 2,161 (1,780) (617) Dividends, net of foreign tax credits - - 795 One-time tax on foreign unremitted earnings (Tax Act) - 4,627 Changes in deferred tax assets (189) 6,239 (625) Mexico mining tax 1,777 2,816 1,270 U.S. Tax rate reduction from 35% to 21% (Tax Act) - 2,671 - Other 38 (212) 826 Tax provision $ 7,263 $ 24,328 $ 4,759 |
Tax Effects of Temporary Differences That Give Rise to Significant Portions of Deferred Tax Assets | At December 31, 2018 2017 (in thousands) Non-current deferred tax assets: Tax loss carryforward - U.S. $ 3,862 $ 1,450 Property and equipment - 1,935 Share-based compensation 4,339 4,622 Foreign tax credits 4,448 4,185 Other 3,572 2,284 Total deferred tax assets 16,221 14,476 Valuation allowance (7,318) (6,720) Deferred tax assets after valuation allowance $ 8,903 $ 7,756 Deferred tax liability – Property and equipment (1,531) (902) Net deferred tax asset $ 7,372 $ 6,854 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Prepaid Expenses And Other Current Assets | |
Schedule of prepaid and other assets | 2018 2017 (in thousands) Advances to suppliers $ 289 $ 163 Prepaid insurance 1,179 869 Vendor deposits 236 501 IVA taxes receivable, net 538 - Other current assets 208 234 Total $ 2,450 $ 1,767 |
Property, Plant and Mine Deve_2
Property, Plant and Mine Development, net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Mine Development, net | |
Schedule of property, plant and mine development | 2018 2017 (in thousands) Asset retirement costs $ 1,240 $ 1,079 Construction-in-progress (1) 34,335 10,838 Furniture and office equipment 1,861 1,664 Land 242 242 Light vehicles and other mobile equipment 2,508 2,211 Machinery and equipment 27,485 22,916 Mill facilities and infrastructure 11,712 10,075 Mineral interests and mineral rights 17,958 17,658 Mine development 69,487 56,957 Software and licenses 1,659 1,678 Subtotal (2) (3) 168,487 125,318 Accumulated depreciation and amortization (57,245) (42,719) Total $ 111,242 $ 82,599 (1) Nevada construction-in-progress costs of $21.6 million and $7.4 million at December 31, 2018 and December 31, 2017, respectively. Mexico construction-in-progress of $12.7 million and $3.4 million at December 31, 2018 and December 31, 2017, respectively. (2) Includes $1.6 million of assets recorded under capital leases at December 31, 2018 and December 31, 2017. Please see Note 11 for additional information . (3) Includes accrued capital expenditures of $4.3 million and $1.0 at December 31, 2018 and 2017, respectively. |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accrued Expenses and Other Current Liabilities | |
Schedule of Accrued Expenses and Other Current Liabilities | 2018 2017 (in thousands) Accrued insurance $ 364 $ 662 Accrued royalty payments 1,432 1,805 Dividends payable 98 95 IVA taxes payable, net - 274 Other payables 136 15 Total $ 2,030 $ 2,851 |
Reclamation and Remediation (Ta
Reclamation and Remediation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Reclamation And Remediation | |
Changes in Reclamation and Remediation | 2018 2017 (in thousands) Reclamation liabilities – balance at beginning of period $ 2,005 $ 1,907 Changes in estimate - 10 Foreign currency exchange loss 4 88 Reclamation liabilities – balance at end of period 2,009 2,005 Asset retirement obligation – balance at beginning of period 941 518 Changes in estimate 271 366 Accretion expense 78 35 Foreign currency exchange loss (1) 22 Asset retirement obligation – balance at end of period 1,289 941 Total period end balance $ 3,298 $ 2,946 |
Capital Lease (Tables)
Capital Lease (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Capital Lease | |
Schedule Of Capital Lease Obligations | Year Ending December 31: 2019 $ 470 2020 470 2021 406 2022 - Total minimum obligations 1,346 Interest portion (103) Present value of net minimum payments 1,243 Less: current portion (412) Non-current portion $ 831 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies | |
Schedule of Future Minimum Rental Payments for Operating Leases | Payments due by Period Total 2019 2020 2021 2022 2023 and (in thousands) Operating leases $ 31,170 $ 16,259 $ 14,839 $ 72 $ - $ - |
Embedded Derivatives (Tables)
Embedded Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Embedded Derivatives | |
Summary of unsettled sales contracts | Gold Silver Copper Lead Zinc (ounces) (ounces) (tonnes) (tonnes) (tonnes) Under contract 7,791 357,361 558 2,500 6,095 Average forward price (per ounce or tonne) $ 1,225 $ 14.46 $ 6,164 $ 2,001 $ 2,539 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Stock-Based Compensation. | |
Schedule of Share-based Compensation, Stock Options, Activity | Shares Weighted Weighted Average Aggregate Outstanding as of December 31, 2016 6,049,001 $ 7.48 5.36 $ 3,963 Granted 416,000 4.08 - Exercised (25,000) 2.30 - Expired (195,000) 8.99 - Forfeited - - - Outstanding as of December 31, 2017 6,245,001 $ 7.23 4.68 $ 4,040 Granted 505,500 5.41 - Exercised (1,412,926) 3.13 - Expired (73) 4.60 - Forfeited (77,667) 3.44 - Outstanding as of December 31, 2018 5,259,835 $ 8.21 4.82 $ 1,396 Vested and exercisable as of December 31, 2018 4,375,629 $ 8.91 3.98 $ 1,289 |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range | Outstanding Exercisable Range of Exercise Prices Number of Options Weighted Average Weighted Number of Weighted $0.00 - $6.25 2,734,335 5.14 $ 3.59 2,079,329 $ 3.47 $6.25 -$12.50 1,065,500 4.89 $ 8.30 836,300 $ 8.69 $12.50 - $18.75 1,340,000 3.77 $ 16.46 1,340,000 $ 16.46 $18.75 - $25.00 120,000 3.68 $ 20.51 120,000 $ 20.51 5,259,835 4.82 $ 8.21 4,375,629 $ 8.91 |
Schedule of Assumptions Used to Determine the Value of our Stock-based Awards | Year ended December 31, 2018 2017 2016 Risk-free interest rate 2.72 % 1.94 % % Dividend yield 0.40 % 0.53 % 0.46 % Expected volatility 67.11 % 67.70 % 62.74 % Expected life in years 5 5 5 |
Schedule of RSU activity under the Incentive Plan | Shares Weighted Weighted Average Aggregate Nonvested as of December 31, 2016 181,738 $ - 1.82 $ 791 Granted 105,945 - - - Vested (78,400) - - - Expired - - - - Forfeited - - - - Nonvested as of December 31, 2017 209,283 $ - 1.91 $ 920 Granted 120,002 - - - Vested (89,921) - - - Expired - - - - Forfeited (16,610) - - - Nonvested as of December 31, 2018 222,754 $ - 1.77 $ 891 |
Stock-based compensation expense | Year ended December 31, 2018 2017 2016 (in thousands) Stock options $ 993 $ 829 $ 1,036 Restricted stock units 504 363 204 Total $ 1,497 $ 1,192 $ 1,240 |
Schedule Of Stock-Based Compensation Expense Allocated Between Production And General And Administrative Expense | Year ended December 31, 2018 2017 2016 (in thousands) Production costs $ 72 $ 99 $ 186 General and administrative expenses 1,295 1,029 1,040 Exploration expense 130 64 14 Total $ 1,497 $ 1,192 $ 1,240 |
Other Expense, Net (Tables)
Other Expense, Net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Expense, Net | |
Schedule of Other (Expense) Income, Net | Year ended December 31, 2018 2017 2016 (in thousands) Unrealized currency exchange loss (gain) $ 230 $ 983 $ (267) Realized currency exchange loss (gain) 707 (457) (261) Unrealized loss (gain) from gold and silver rounds/bullion, net (1) 134 (493) (411) Loss (gain) on investments, net (1) (2) 195 - (348) Loss on disposal of fixed assets 389 474 578 Gain on insurance reimbursement - - (620) Increase in reserve for inventory obsolescence 114 106 545 Increase in allowance for doubtful accounts receivable 1,360 - - Other (income) expense (18) 553 224 Total $ 3,111 $ 1,166 $ (560) (1) Gains and losses due to changes in fair value are non-cash in nature until such time that they are realized through cash transactions. During 2018, the Company wrote off its equity investment and recognized a loss of $195. During 2016, the Company sold its current investment in equity and realized a gain of $348. For additional information regarding our fair value measurements and investments, please see Note 19 . |
Net Income per Common Share (Ta
Net Income per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Net Income per Common Share | |
Net Income Per Share | Year ended December 31, 2018 2017 2016 Net income (in thousands) $ 9,288 $ 4,150 $ 4,387 Basic weighted average shares of common stock outstanding 57,534,830 56,854,670 55,140,237 Dilutive effect of share-based awards 834,836 740,323 584,969 Diluted weighted average common shares outstanding 58,369,666 57,594,993 55,725,206 Net income per share: Basic and diluted $ 0.16 $ 0.07 $ |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Measurement | |
Assets measured at fair value by level within fair value hierarchy | 2018 2017 Input Hierarchy Level (in thousands) Cash and cash equivalents: Bank deposits $ 7,762 $ 22,390 Level 1 Gold and silver rounds/bullion 3,637 3,812 Level 1 Accounts receivable, net: Receivables from provisional concentrate sales 1,744 2,884 Level 2 $ 13,143 $ 29,086 |
Gains and Losses Related to Changes in Fair Value | Year ended December 31, Statement of 2018 2017 2016 Operations Classification Realized/unrealized derivative (loss) gain, net $ (4,209) $ 1,899 $ 1,356 Sales, net Gold and silver rounds/bullion (loss) gain $ (148) $ 282 $ 411 Other expense, net Investment (loss) gain $ (195) $ - $ 351 Other expense, net |
Realized and Unrealized Gain Losses on Derivatives | Gold Silver Copper Lead Zinc Total Year ended December 31, 2018 Realized loss $ (191) $ (374) $ (268) $ (788) $ (2,081) $ (3,702) Unrealized gain (loss) 222 272 (162) (39) (800) (507) Total realized/unrealized derivatives, net $ 31 $ (102) $ (430) $ (827) $ (2,881) $ (4,209) Gold Silver Copper Lead Zinc Total Year ended December 31, 2017 Realized gain (loss) $ 154 $ 151 $ 128 $ 131 $ 798 $ 1,362 Unrealized (loss) gain (93) (183) 64 72 677 537 Total realized/unrealized derivatives, net $ 61 $ (32) $ 192 $ 203 $ 1,475 $ 1,899 Gold Silver Copper Lead Zinc Total Year ended December 31, 2016 Realized gain (loss) $ 72 $ 330 $ (78) $ 127 $ 432 $ 883 Unrealized gain 38 159 125 84 67 473 Total realized/unrealized derivatives, net $ 110 $ 489 $ 47 $ 211 $ 499 $ 1,356 |
Supplementary Cash-Flow Infor_2
Supplementary Cash-Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Supplementary Cash-Flow Information | |
Schedule of Supplementary Cash Flow Information | 2018 2017 2016 (in thousands) Unrealized loss (gain) on gold and silver rounds/bullion $ 134 $ (493) $ (411) Unrealized foreign currency exchange loss (gain) 230 983 (267) Loss (gain) on investments 195 - (348) Loss on disposition of fixed assets 389 474 578 Decrease in reserve for inventory obsolescence 114 106 545 Change in allowance for doubtful accounts receivable 1,360 - - Other 113 215 201 Total other operating adjustments $ 2,535 $ 1,285 $ 298 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting | |
Schedule of financial information relating to the Company segments | Mexico Nevada Corporate and Other Consolidated Year ended December 31, 2018 Revenue $ 115,308 $ - $ - $ 115,308 Exploration expense 2,217 2,314 172 4,703 Net income (loss) 20,631 (2,585) (8,758) 9,288 Capital expenditures (1) 24,039 20,133 29 44,201 Mexico Nevada Corporate and Other Consolidated Year ended December 31, 2017 Revenue $ 110,156 $ - $ - $ 110,156 Exploration expense 1,288 2,916 145 4,349 Net income (loss) 20,379 (2,423) (13,806) 4,150 Capital expenditures (2) 21,760 10,087 9 31,856 Mexico Nevada Corporate and Other Consolidated Year ended December 31, 2016 Revenue $ 83,227 $ - $ - $ 83,227 Exploration expense 1,992 2,057 265 4,314 Net income (loss) 14,705 (1,292) (9,026) 4,387 Capital expenditures (3) 12,356 13,956 170 26,482 (1) Includes an increase in accrued capital expenditures of $3,302 and non-cash additions of $823; consolidated capital expenditures on a cash basis were $40,470. (2) Includes an increase in accrued capital expenditures of $1,041 and non-cash additions of $5,383; consolidated capital expenditures on a cash basis were $25,432. (3) Includes a decrease in accrued capital expenditures of $2,868 and non-cash additions of $14,210; consolidated capital expenditures on a cash basis were $15,140. |
Schedule of asset balances, excluding investments and intercompany | 2018 2017 (in thousands) Mexico $ 91,590 $ 87,739 Nevada 46,677 25,741 Corporate and Other 12,064 19,443 Consolidated $ 150,331 $ 132,923 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Data | |
Schedule of Quarterly Financial Information | 2018 First Quarter Second Quarter Third Quarter Fourth Quarter (in thousands, except per common share data) Sales, net $ 32,151 $ 30,768 $ 24,258 $ 28,131 Mine gross profit $ 12,920 $ 9,521 $ 3,293 $ 7,956 Net income (loss) $ 5,457 $ 3,754 $ (781) $ 858 Net income (loss) per common share: Basic $ 0.10 $ 0.07 $ (0.01) $ 0.01 Diluted $ 0.09 $ 0.06 $ (0.01) $ 0.01 Weighted average shares outstanding: Basic 57,120,077 57,315,472 57,642,966 58,049,972 Diluted 57,911,299 58,314,123 57,642,966 58,571,874 2017 First Quarter Second Quarter Third Quarter Fourth Quarter (in thousands, except per common share data) Sales, net $ 24,336 $ 21,391 $ 31,122 $ 33,307 Mine gross profit $ 10,416 $ 5,226 $ 11,201 $ 15,272 Net income (loss) $ 4,376 $ 864 $ 4,581 $ (5,671) Net income (loss) per common share: Basic and diluted $ 0.08 $ 0.02 $ 0.08 $ (0.11) Weighted average shares outstanding: Basic 56,796,751 56,839,823 56,888,115 56,892,583 Diluted 57,991,663 57,375,938 57,455,805 57,452,314 |
Nature of Operations and Summ_4
Nature of Operations and Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Nature Of Operations [Line Items] | |||
Allowance for doubtful accounts | $ 1.4 | $ 0 | |
Concentrate sale percentage based on provisional sales price | 100.00% | ||
Accounting Standards Update 2016-02 | |||
Nature Of Operations [Line Items] | |||
Operating lease ROU assets | $ 13.8 | ||
Operating lease, liability | $ 13 | ||
Sales And Receivables [Member] | |||
Nature Of Operations [Line Items] | |||
Concentration risk | 100.00% | 100.00% | 100.00% |
Nature of Operations and Summ_5
Nature of Operations and Summary of Significant Accounting Policies - Estimated Economic Lives (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Furniture, computer and office equipment | Minimum | |
Property Plant And Equipment [Line Items] | |
Useful life | 3 years |
Furniture, computer and office equipment | Maximum | |
Property Plant And Equipment [Line Items] | |
Useful life | 10 years |
Light vehicles and other mobile equipment | |
Property Plant And Equipment [Line Items] | |
Useful life | 4 years |
Machinery and equipment | Maximum | |
Property Plant And Equipment [Line Items] | |
Useful life | 4 years |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Realized/unrealized embedded derivative (loss)/gain, net | $ (4,209) | $ 1,899 | $ 1,356 | ||||||||
Total sales, net | $ 28,131 | $ 24,258 | $ 30,768 | $ 32,151 | $ 33,307 | $ 31,122 | $ 21,391 | $ 24,336 | 115,308 | 110,156 | 83,227 |
Dore [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Less: Treatment and refining charges | (118) | (63) | (105) | ||||||||
Total sales, net | 7,480 | 6,366 | 11,418 | ||||||||
Gold Dore [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total sales, net | 6,250 | 6,270 | 11,384 | ||||||||
Silver Dore [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total sales, net | 1,348 | 159 | 139 | ||||||||
Concentrate [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Less: Treatment and refining charges | (5,447) | (7,697) | (16,186) | ||||||||
Total sales, net | 112,037 | 101,891 | 70,453 | ||||||||
Gold Concentrate [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total sales, net | 22,750 | 25,526 | 20,490 | ||||||||
Silver Concentrate [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total sales, net | 22,972 | 27,567 | 28,803 | ||||||||
Copper Concentrate [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total sales, net | 9,919 | 6,646 | 4,697 | ||||||||
Lead Concentrate [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total sales, net | 15,100 | 11,568 | 7,225 | ||||||||
Zinc Concentrate [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total sales, net | $ 46,743 | $ 38,281 | $ 25,424 |
Gold and Silver Bullion (Detail
Gold and Silver Bullion (Details) - oz | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Gold | ||
Schedule Of Investments [Line Items] | ||
Purchases of bullion | 0 | 215.85 |
Silver | ||
Schedule Of Investments [Line Items] | ||
Purchases of bullion | 0 | 90 |
Gold and Silver Bullion - Bulli
Gold and Silver Bullion - Bullion Holdings (Details) $ in Thousands | Dec. 31, 2018USD ($)oz$ / oz | Dec. 31, 2017USD ($)oz$ / oz |
Schedule of Investments [Line Items] | ||
Total carrying value | $ 3,637 | $ 3,812 |
Gold | ||
Schedule of Investments [Line Items] | ||
Ounces | oz | 1,888 | 1,905 |
Carrying value per ounce | $ / oz | 1,279 | 1,291 |
Total carrying value | $ 2,415 | $ 2,459 |
Silver | ||
Schedule of Investments [Line Items] | ||
Ounces | oz | 79,864 | 80,224 |
Carrying value per ounce | $ / oz | 15.30 | 16.87 |
Total carrying value | $ 1,222 | $ 1,353 |
Current Inventories (Details)
Current Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current Inventories | ||
Stockpiles - underground mine | $ 2,365 | $ 1,450 |
Stockpiles - open pit mine | 414 | 101 |
Leach pad | 376 | |
Concentrates | 1,231 | 1,973 |
Dore | 1,289 | 394 |
Subtotal - product inventory | 5,675 | 3,918 |
Materials and supplies | 8,667 | 7,718 |
Inventories - current | 14,342 | 11,636 |
Inventory reserve | $ 857 | $ 743 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Line Items] | ||
Effective tax rate | 21.00% | 35.00% |
Withholding tax on dividends | 10.00% | |
Dividend withholding tax between countries | 5.00% | |
Dividend Withholding Tax Amount Between Countries | $ 400 | |
MITL corporate income tax rate | 30.00% | |
MITL royalty tax on mining concessions | 7.50% | |
Royalty fee as percent of gross revenue | 0.50% | |
Deferred tax assets | $ 16,221 | $ 14,476 |
Liability for uncertain tax positions | 0 | |
Foreign tax credits | 4,400 | |
Internal Revenue Service (IRS) [Member] | ||
Income Taxes [Line Items] | ||
Tax loss carry-forward | $ 11,000 | |
Accounting Standards Update 2016-09 [Member] | ||
Income Taxes [Line Items] | ||
Deferred tax assets | 4,200 | |
Isabella Pearl Project | ||
Income Taxes [Line Items] | ||
Increase in deferred tax assets, net | 4,200 | |
Decrease in property, plant and mine equipment | $ 4,200 |
Income Taxes (U.S. And Foreign
Income Taxes (U.S. And Foreign Components Of Loss Before Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes | |||
U.S. Operations | $ (9,378) | $ (8,142) | $ (7,001) |
Foreign Operations | 25,929 | 36,620 | 16,147 |
Income before income taxes | $ 16,551 | $ 28,478 | $ 9,146 |
Income Taxes (Income Tax Provis
Income Taxes (Income Tax Provision) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes | |||
Federal Current Taxes | $ 9 | $ 353 | |
Foreign Current Taxes | $ 7,763 | 9,327 | 5,961 |
Total current taxes | 7,763 | 9,336 | 6,314 |
Federal Deferred Taxes | (1,692) | 4,923 | (1,715) |
Foreign Deferred Taxes | 1,192 | 10,069 | 160 |
Total deferred taxes | (500) | 14,992 | (1,555) |
Total income tax provision | $ 7,263 | $ 24,328 | $ 4,759 |
Income Taxes (Reconciliation Of
Income Taxes (Reconciliation Of Taxes Reported At Company's Tax Rate And U.S. Federal Statutory Tax Rate) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes | |||
Tax at statutory rates | $ 3,476 | $ 9,967 | $ 3,110 |
Foreign rate differential | 2,161 | (1,780) | (617) |
Dividends, net of foreign tax credits | 795 | ||
One-time tax on foreign unremitted earnings (Tax Act) | 4,627 | ||
Adjustments to deferred tax assets | (189) | 6,239 | (625) |
Mexico mining tax | 1,777 | 2,816 | 1,270 |
U.S. Tax rate reduction from 35% to 21% (Tax Act) | 2,671 | ||
Other | 38 | (212) | 826 |
Total income tax provision | $ 7,263 | $ 24,328 | $ 4,759 |
Income Taxes (Tax Effects Of Te
Income Taxes (Tax Effects Of Temporary Differences That Give Rise To Significant Portions Of Deferred Tax Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Income Taxes | ||
Tax loss carryforward - U.S. | $ 3,862 | $ 1,450 |
Property and equipment | 1,935 | |
Stock-based compensation | 4,339 | 4,622 |
Foreign tax credits | 4,448 | 4,185 |
Other | 3,572 | 2,284 |
Total deferred tax assets | 16,221 | 14,476 |
Valuation allowance | (7,318) | (6,720) |
Deferred Tax Assets after valuation allowance | 8,903 | 7,756 |
Long-term deferred tax liability | (1,531) | (902) |
Net deferred tax asset | $ 7,372 | $ 6,854 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Prepaid Expenses And Other Current Assets | ||
Advances to suppliers | $ 289 | $ 163 |
Prepaid insurance | 1,179 | 869 |
Vendor deposits | 236 | 501 |
IVA taxes receivable, net | 538 | |
Other current assets | 208 | 234 |
Total | $ 2,450 | $ 1,767 |
Property, Plant and Mine Deve_3
Property, Plant and Mine Development, net - Summary of Property, Equipment and Mine Development (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property, equipment and mine development - net | ||
Property and equipment, gross | $ 168,487 | $ 125,318 |
Accumulated depreciation, depletion and amortization | (57,245) | (42,719) |
Total property, equipment and mine development - net | 111,242 | 82,599 |
Accrued capital expenditures | 4,300 | 1,000 |
Asset retirement costs | ||
Property, equipment and mine development - net | ||
Property and equipment, gross | 1,240 | 1,079 |
Construction-in-progress | ||
Property, equipment and mine development - net | ||
Property and equipment, gross | 34,335 | 10,838 |
Furniture and office equipment | ||
Property, equipment and mine development - net | ||
Property and equipment, gross | 1,861 | 1,664 |
Land | ||
Property, equipment and mine development - net | ||
Property and equipment, gross | 242 | 242 |
Light vehicles and other mobile equipment | ||
Property, equipment and mine development - net | ||
Property and equipment, gross | 2,508 | 2,211 |
Machinery and equipment | ||
Property, equipment and mine development - net | ||
Property and equipment, gross | 27,485 | 22,916 |
Mill facilities and infrastructure | ||
Property, equipment and mine development - net | ||
Property and equipment, gross | 11,712 | 10,075 |
Mineral Interests And Mineral Rights | ||
Property, equipment and mine development - net | ||
Property and equipment, gross | 17,958 | 17,658 |
Mine development | ||
Property, equipment and mine development - net | ||
Property and equipment, gross | 69,487 | 56,957 |
Software and licenses | ||
Property, equipment and mine development - net | ||
Property and equipment, gross | 1,659 | 1,678 |
Asset Value, Capital Lease | ||
Property, equipment and mine development - net | ||
Property and equipment, gross | 1,600 | 1,600 |
Mexico | ||
Property, equipment and mine development - net | ||
Asset and development costs | 12,700 | 3,400 |
Nevada | ||
Property, equipment and mine development - net | ||
Asset and development costs | $ 21,600 | $ 7,400 |
Property, Plant and Mine Deve_4
Property, Plant and Mine Development, net - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Mine Development, net | |||
Depletion, depreciation and amortization | $ 15,169 | $ 14,998 | $ 12,588 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accrued Expenses and Other Current Liabilities | ||
Accrued insurance | $ 364 | $ 662 |
Accrued royalty payments | 1,432 | 1,805 |
Dividends payable | 98 | 95 |
IVA taxes payable, net | 274 | |
Other payables | 136 | 15 |
Accrued expenses and other current liabilities | $ 2,030 | $ 2,851 |
Reclamation and Remediation (De
Reclamation and Remediation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Asset Retirement Obligation, Roll Forward Analysis | ||
Reclamation liabilities – balance at beginning of period | $ 2,005 | $ 1,907 |
Changes in estimate | 10 | |
Foreign currency exchange loss | 4 | 88 |
Reclamation liabilities – balance at end of period | 2,009 | 2,005 |
Asset retirement obligation – balance at beginning of period | 941 | 518 |
Changes in estimate | 271 | 366 |
Accretion expense | 78 | 35 |
Foreign currency exchange loss | (1) | 22 |
Asset retirement obligation – balance at end of period | 1,289 | 941 |
Total period end balance | 3,298 | 2,946 |
Arista and Alta Gracia Projects | ||
Asset Retirement Obligation, Roll Forward Analysis | ||
Total period end balance | $ 2,500 | $ 2,500 |
Reclamation and remediation discount rate | 8.00% | 8.00% |
Isabella Pearl Project | ||
Asset Retirement Obligation, Roll Forward Analysis | ||
Asset retirement obligation – balance at end of period | $ 800 | |
Reclamation and remediation discount rate | 8.00% | |
Reclamation bond | $ 9,200 |
Loan Payable (Details)
Loan Payable (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Debt Instrument [Line Items] | |
Periodic payment | $ 70 |
Outstanding loan | 2,100 |
Minimum repayments in 2019 | 800 |
2,020 | 800 |
2,021 | $ 500 |
Minimum | |
Debt Instrument [Line Items] | |
Interest rate | 3.00% |
Repayment penalty, percentage | 1.00% |
Maximum | |
Debt Instrument [Line Items] | |
Interest rate | 4.48% |
Repayment penalty, percentage | 2.00% |
Capital Lease (Details)
Capital Lease (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Capital Lease [Line Items] | ||
Monthly principal, interest and sales tax payment | $ 40 | |
2,019 | 470 | |
2,020 | 470 | |
2,021 | 406 | |
Total minimum obligations | 1,346 | |
Interest portion | (103) | |
Present value of net minimum payments | 1,243 | |
Less current portion | (412) | $ (382) |
Non-current portion | $ 831 | $ 1,218 |
Minimum | ||
Capital Lease [Line Items] | ||
Capital lease interest rate | 1.58% | |
Maximum | ||
Capital Lease [Line Items] | ||
Capital lease interest rate | 5.95% |
Commitments and Contingencies_2
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions | Nov. 14, 2018 | Dec. 31, 2018 |
Leases [Line Items] | ||
Equipment purchase commitments | $ 2.5 | |
Contract Mining Agreement Member | ||
Leases [Line Items] | ||
Operating lease charges | $ 1.4 | |
Lease agreement | 24 months |
Commitments and Contingencies_3
Commitments and Contingencies (Minimum Rental Payments) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Commitments and Contingencies | |
Operating leases, Total | $ 31,170 |
Operating leases, 2019 | 16,259 |
Operating leases, 2020 | 14,839 |
Operating leases, 2021 | $ 72 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 17, 2017 | Jan. 06, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Apr. 03, 2018 | Sep. 23, 2011 |
Dividends declared | $ 1,100 | $ 1,100 | $ 1,700 | ||||
Cash dividend rate declared, per common share | $ 0.02 | $ 0.02 | $ 0.03 | ||||
Value of shares issued | $ 4,319 | ||||||
Sale of shares | 1,131,755 | ||||||
Value of shares issued | $ 1,300 | $ 13,910 | |||||
Common stock repurchase, shares authorized | $ 20,000 | ||||||
Shares repurchased during period | 0 | 0 | 0 | ||||
Mina Gold Property | |||||||
Shares issued for acquisition | 130,169 | ||||||
Share issue price ( in dollars per share) | $ 6.53 | ||||||
Value of shares issued | $ 900 | ||||||
Walker Lane Minerals Corp | |||||||
Shares issued for acquisition | 2,000,000 | ||||||
Isabella Pearl Project | |||||||
Shares issued for acquisition | 59,642 | ||||||
Share issue price ( in dollars per share) | $ 5.03 | ||||||
Value of shares issued | $ 300 | ||||||
East Camp Douglas Property | |||||||
Shares issued for acquisition | 186,568 | ||||||
Share issue price ( in dollars per share) | $ 5.36 | ||||||
Value of shares issued | $ 1,000 | ||||||
Maximum | |||||||
Common stock aggregate gross sales price | $ 75,000 |
Embedded Derivatives (Details)
Embedded Derivatives (Details) | 12 Months Ended |
Dec. 31, 2018ozt$ / oz$ / t | |
Gold | |
Embedded Derivative [Line Items] | |
Under contract | oz | 7,791 |
Average forward price | $ / oz | 1,225 |
Silver | |
Embedded Derivative [Line Items] | |
Under contract | oz | 357,361 |
Average forward price | $ / oz | 14.46 |
Copper | |
Embedded Derivative [Line Items] | |
Under contract | t | 558 |
Average forward price | $ / t | 6,164 |
Lead | |
Embedded Derivative [Line Items] | |
Under contract | t | 2,500 |
Average forward price | $ / t | 2,001 |
Zinc | |
Embedded Derivative [Line Items] | |
Under contract | t | 6,095 |
Average forward price | $ / t | 2,539 |
Employee Benefits (Details)
Employee Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Matching contribution expense | $ 0.1 | $ 0.1 | $ 0.1 |
Unfunded matching contribution obligation | $ 0 | ||
Maximum | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plan maximum percentage amount of the employee's gross pay that the employee can contribute | 45.00% |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Equity Incentive plan shares for issuance authorized | 5,000,000 | ||
Options granted | 505,500 | 416,000 | |
Exercise period | 10 years | ||
Weighted-average grant date fair value of options granted | $ 3.04 | $ 2.25 | $ 1.96 |
Intrinsic value of shares | $ 2,600,000 | $ 100,000 | $ 600,000 |
Fair value | $ 900,000 | 800,000 | 1,300,000 |
Number of shares purchased | 1,412,926 | ||
Number of shares exercised on a net exercise basis | 945,000 | ||
Number of shares exercised and delivered | 244,345 | ||
Number of shares exercised for cash | 467,926 | ||
Proceeds from the exercise of stock options | $ 1,261,000 | $ 0 | 391,000 |
Number of options that vested | 26,300 | ||
Vesting period | 3 years | ||
Stock options exercised (in shares) | 1,412,926 | 25,000 | |
Non-cash compensation expense related to stock options included in general and administrative expense | $ 1,497,000 | $ 1,192,000 | 1,240,000 |
Estimated unrecognized compensation cost from unvested RSU's | $ 900,000 | ||
RSU vesting period | 3 years | ||
Stock-based compensation | $ 1,497,000 | $ 1,192,000 | 1,240,000 |
Restricted Stock Units (RSUs) [Member] | |||
Vested (in shares) | 89,921 | 78,400 | |
Total intrinsic value | $ 500,000 | $ 300,000 | $ 0 |
Restricted stock units, granted | 120,002 | 105,945 | |
Estimated unrecognized compensation cost from unvested RSU's | $ 1,900,000 | ||
Restricted Stock Units (RSUs) [Member] | 6 Months Vested | |||
Vested (in shares) | 14,804 | ||
Vesting period | 6 months | ||
Restricted Stock Units (RSUs) [Member] | 3 Year Vested | |||
Vesting period | 3 years |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Activity Under Stock Option Plan (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding, Beginning Balance (in shares) | 6,245,001 | 6,049,001 | |
Granted (in shares) | 505,500 | 416,000 | |
Stock option exercised (in shares) | (1,412,926) | (25,000) | |
Expired (in shares) | (73) | (195,000) | |
Forfeited (in shares) | (77,667) | ||
Outstanding, Ending Balance (in shares) | 5,259,835 | 6,245,001 | 6,049,001 |
Vested and exercisable as of December 31, 2015 (in shares) | 4,375,629 | ||
Weighted Average Exercise Price | |||
Outstanding Weighted Average Exercise Price, Beginning Balance | $ 7.23 | $ 7.48 | |
Weighted Average Exercise Price, Granted | 5.41 | 4.08 | |
Weighted Average Exercise Price, Exercised | 3.13 | 2.30 | |
Weighted Average Exercise Price, Expired | 4.60 | 8.99 | |
Weighted Average Exercise Price, Forfeited | 3.44 | ||
Outstanding Weighted Average Exercise Price, Ending Balance | 8.21 | $ 7.23 | $ 7.48 |
Weighted Average Exercise Price, Vested and exercisable as of end of period | $ 8.91 | ||
Weighted -Average Remaining contractual Term (in years) | |||
Weighted Average Remaining Contractual Term (in years), Outstanding as Beginning of period | 4 years 9 months 26 days | 4 years 8 months 5 days | 5 years 4 months 10 days |
Weighted Average Remaining Contractual Term (in years), Outstanding as of end of period | 4 years 9 months 26 days | 4 years 8 months 5 days | 5 years 4 months 10 days |
Weighted Average Remaining Contractual Term (in years), Vested and exercisable as of end of period | 3 years 11 months 23 days | ||
Additional disclosures | |||
Aggregate Intrinsic Value, Outstanding as of beginning of period | $ 4,040 | $ 3,963 | |
Aggregate Intrinsic Value, Outstanding as of end of period | 1,396 | $ 4,040 | $ 3,963 |
Aggregate Intrinsic Value, Vested and exercisable as of end of period | $ 1,289 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Stock Options by Exercise Price Range (Details) | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding Number of Options | shares | 5,259,835 |
Outstanding Weighted Average Remaining Contractual Term (in years) | 4 years 9 months 26 days |
Outstanding Weighted Average Exercise Price (per share) | $ 8.21 |
Exercisable Number of Options | shares | 4,375,629 |
Exercisable Weighted Average Exercise Price (per share) | $ 8.91 |
$0.00 - $6.25 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Stock options exercise price range, lower limit | 0 |
Stock options exercise price range, upper limit | $ 6.25 |
Outstanding Number of Options | shares | 2,734,335 |
Outstanding Weighted Average Remaining Contractual Term (in years) | 5 years 1 month 21 days |
Outstanding Weighted Average Exercise Price (per share) | $ 3.59 |
Exercisable Number of Options | shares | 2,079,329 |
Exercisable Weighted Average Exercise Price (per share) | $ 3.47 |
$6.25 -$12.50 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Stock options exercise price range, lower limit | 6.25 |
Stock options exercise price range, upper limit | $ 12.50 |
Outstanding Number of Options | shares | 1,065,500 |
Outstanding Weighted Average Remaining Contractual Term (in years) | 4 years 10 months 21 days |
Outstanding Weighted Average Exercise Price (per share) | $ 8.30 |
Exercisable Number of Options | shares | 836,300 |
Exercisable Weighted Average Exercise Price (per share) | $ 8.69 |
$12.50 - $18.75 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Stock options exercise price range, lower limit | 12.50 |
Stock options exercise price range, upper limit | $ 18.75 |
Outstanding Number of Options | shares | 1,340,000 |
Outstanding Weighted Average Remaining Contractual Term (in years) | 3 years 9 months 7 days |
Outstanding Weighted Average Exercise Price (per share) | $ 16.46 |
Exercisable Number of Options | shares | 1,340,000 |
Exercisable Weighted Average Exercise Price (per share) | $ 16.46 |
$18.75 - $25.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Stock options exercise price range, lower limit | 18.75 |
Stock options exercise price range, upper limit | $ 25 |
Outstanding Number of Options | shares | 120,000 |
Outstanding Weighted Average Remaining Contractual Term (in years) | 3 years 8 months 5 days |
Outstanding Weighted Average Exercise Price (per share) | $ 20.51 |
Exercisable Number of Options | shares | 120,000 |
Exercisable Weighted Average Exercise Price (per share) | $ 20.51 |
Share-Based Compensation - Blac
Share-Based Compensation - Black-Scholes Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Stock-Based Compensation. | |||
Risk-free interest rate | 2.72% | 1.94% | 0.87% |
Dividend yield | 0.40% | 0.53% | 0.46% |
Expected volatility | 67.11% | 67.70% | 62.74% |
Expected life in years | 5 years | 5 years | 5 years |
Share-Based Compensation - Su_2
Share-Based Compensation - Summary of RSU activity under Incentive Plan (Details) - Restricted Stock Units (RSUs) [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Nonvested, Beginning Balance (in shares) | 209,283 | 181,738 | |
Number of RSUs Granted | 120,002 | 105,945 | |
Vested (in shares) | (89,921) | (78,400) | |
Forfeited (in shares) | (16,610) | ||
Nonvested, Ending Balance | 222,754 | 209,283 | 181,738 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted Average Exercise Price, Granted (per share) | $ 6.89 | $ 4.11 | $ 4.60 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |||
Weighted Average Remaining Contractual Term (in years) | 1 year 9 months 7 days | 1 year 10 months 28 days | 1 year 9 months 26 days |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value [Abstract] | |||
Aggregate Intrinsic Value, Outstanding | $ 891 | $ 920 | $ 791 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-based compensation expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Stock-Based Compensation. | |||
Stock options | $ 993 | $ 829 | $ 1,036 |
Restricted stock units | 504 | 363 | 204 |
Total stock-based compensation | $ 1,497 | $ 1,192 | $ 1,240 |
Stock-Based Compensation - Allo
Stock-Based Compensation - Allocation of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Stock-Based Compensation. | |||
Production costs | $ 72 | $ 99 | $ 186 |
General and administrative expenses | 1,295 | 1,029 | 1,040 |
Exploration expense | 130 | 64 | 14 |
Total stock-based compensation | $ 1,497 | $ 1,192 | $ 1,240 |
Other Expense, Net (Details)
Other Expense, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other Expense, Net | |||
Unrealized currency exchange loss (gain) | $ 230 | $ 983 | $ (267) |
Realized currency exchange (gain) loss | 707 | (457) | (261) |
Unrealized (gain) loss from gold and silver rounds/bullion, net | 134 | (493) | (411) |
Loss (gain) on investments, net | 195 | (348) | |
Loss on disposal of fixed assets | 389 | 474 | 578 |
Gain on insurance reimbursement | (620) | ||
Increase (decrease) in reserve for inventory obsolescence | 114 | 106 | 545 |
Increase in allowance for doubtful accounts receivable | 1,360 | ||
Other (income) expense | (18) | 553 | 224 |
Total | $ 3,111 | $ 1,166 | $ (560) |
Net Income per Common Share - N
Net Income per Common Share - Narrative (Details) - $ / shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net Income per Common Share | |||
Stock options excluded from computation of diluted weighted average share outstanding | 3.6 | 3.1 | 2.8 |
Shares excluded from weighted average shares outstanding, exercise price | $ 10.44 | $ 11.26 | $ 12.39 |
Net Income per Common Share - P
Net Income per Common Share - Potential Dilutive Stock Options On Weighted Average Shares Outstanding (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net Income per Common Share | |||||||||||
Net income | $ 858 | $ (781) | $ 3,754 | $ 5,457 | $ (5,671) | $ 4,581 | $ 864 | $ 4,376 | $ 9,288 | $ 4,150 | $ 4,387 |
Basic weighted average shares of common stock outstanding | 58,049,972 | 57,642,966 | 57,315,472 | 57,120,077 | 56,892,583 | 56,888,115 | 56,839,823 | 56,796,751 | 57,534,830 | 56,854,670 | 55,140,237 |
Dilutive effect of stock-based awards | 834,836 | 740,323 | 584,969 | ||||||||
Diluted weighted average common shares outstanding | 58,571,874 | 57,642,966 | 58,314,123 | 57,911,299 | 57,452,314 | 57,455,805 | 57,375,938 | 57,991,663 | 58,369,666 | 57,594,993 | 55,725,206 |
Net income per common share: | |||||||||||
Basic and diluted | $ (0.11) | $ 0.08 | $ 0.02 | $ 0.08 | $ 0.16 | $ 0.07 | $ 0.08 |
Fair Value Measurement (Details
Fair Value Measurement (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Total | $ 13,143 | $ 29,086 |
Fair value of non-current investment in equity securities | 200 | |
Net allowance for doubtful accounts | 1,400 | |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash bank deposits | 7,762 | 22,390 |
Gold and silver rounds/bullion | 3,637 | 3,812 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Receivables from provisional concentrate sales | $ 1,744 | $ 2,884 |
Fair Value Measurement - Statem
Fair Value Measurement - Statement Of Income Classification (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value Statement Of Income Classification [Line Items] | |||
Derivative gain (loss) | $ (100) | $ 400 | |
Investment (loss) gain | (195) | $ 348 | |
Sales | |||
Fair Value Statement Of Income Classification [Line Items] | |||
Derivative gain (loss) | (4,209) | 1,899 | 1,356 |
Other Operating Income (Expense) | |||
Fair Value Statement Of Income Classification [Line Items] | |||
Gold and silver rounds/bullion gain (loss) | (148) | $ 282 | 411 |
Investment (loss) gain | $ (195) | $ 351 |
Fair Value Measurement - Realiz
Fair Value Measurement - Realized Unrealized Derivatives (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivatives, Fair Value [Line Items] | |||
Realized gain (loss) | $ (3,702) | $ 1,362 | $ 883 |
Unrealized gain (loss) | (507) | 537 | 473 |
Total realized/ unrealized derivatives, net | (4,209) | 1,899 | 1,356 |
Gold | |||
Derivatives, Fair Value [Line Items] | |||
Realized gain (loss) | (191) | 154 | 72 |
Unrealized gain (loss) | 222 | (93) | 38 |
Silver | |||
Derivatives, Fair Value [Line Items] | |||
Realized gain (loss) | (374) | 151 | 330 |
Unrealized gain (loss) | 272 | (183) | 159 |
Copper | |||
Derivatives, Fair Value [Line Items] | |||
Realized gain (loss) | (268) | 128 | (78) |
Unrealized gain (loss) | (162) | 64 | 125 |
Lead | |||
Derivatives, Fair Value [Line Items] | |||
Realized gain (loss) | (788) | 131 | 127 |
Unrealized gain (loss) | (39) | 72 | 84 |
Zinc | |||
Derivatives, Fair Value [Line Items] | |||
Realized gain (loss) | (2,081) | 798 | 432 |
Unrealized gain (loss) | $ (800) | $ 677 | $ 67 |
Supplementary Cash-Flow Infor_3
Supplementary Cash-Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Supplementary Cash-Flow Information | |||
Unrealized (gain) loss on gold and silver rounds/bullion | $ 134 | $ (493) | $ (411) |
Unrealized foreign currency exchange loss (gain)Unrealized foreign currency exchange loss (gain) | 230 | 983 | (267) |
Loss (gain) on investments | 195 | (348) | |
Loss on disposition of fixed assets | 389 | 474 | 578 |
Decrease in reserve for inventory obsolescence | 114 | 106 | 545 |
Change in allowance for doubtful accounts receivable | 1,360 | ||
Other | 113 | 215 | 201 |
Total other operating adjustments | $ 2,535 | $ 1,285 | $ 298 |
Segment Reporting (Details)
Segment Reporting (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($)segment | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Number of reportable segments | segment | 2 | ||||||||||
Total sales, net | $ 28,131 | $ 24,258 | $ 30,768 | $ 32,151 | $ 33,307 | $ 31,122 | $ 21,391 | $ 24,336 | $ 115,308 | $ 110,156 | $ 83,227 |
Exploration expenses | 4,703 | 4,349 | 4,314 | ||||||||
Net income (loss) | 858 | $ (781) | $ 3,754 | $ 5,457 | (5,671) | $ 4,581 | $ 864 | $ 4,376 | 9,288 | 4,150 | 4,387 |
Capital expenditures | 44,201 | 31,856 | 26,482 | ||||||||
Accrued capital expenditures | 3,302 | 1,041 | (2,868) | ||||||||
Non - cash additions | 823 | 5,383 | 14,210 | ||||||||
Capital expenditures on a cash basis | 40,470 | 25,432 | 15,140 | ||||||||
Assets | 150,331 | 132,923 | 150,331 | 132,923 | |||||||
Mexico | |||||||||||
Total sales, net | 115,308 | 110,156 | 83,227 | ||||||||
Exploration expenses | 2,217 | 1,288 | 1,992 | ||||||||
Net income (loss) | 20,631 | 20,379 | 14,705 | ||||||||
Capital expenditures | 24,039 | 21,760 | 12,356 | ||||||||
Assets | 91,590 | 87,739 | 91,590 | 87,739 | |||||||
Nevada | |||||||||||
Exploration expenses | 2,314 | 2,916 | 2,057 | ||||||||
Net income (loss) | (2,585) | (2,423) | (1,292) | ||||||||
Capital expenditures | 20,133 | 10,087 | 13,956 | ||||||||
Assets | 46,677 | 25,741 | 46,677 | 25,741 | |||||||
Corporate and Other | |||||||||||
Exploration expenses | 172 | 145 | 265 | ||||||||
Net income (loss) | (8,758) | (13,806) | (9,026) | ||||||||
Capital expenditures | 29 | 9 | $ 170 | ||||||||
Assets | $ 12,064 | $ 19,443 | $ 12,064 | $ 19,443 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Data | |||||||||||
Sales, net | $ 28,131 | $ 24,258 | $ 30,768 | $ 32,151 | $ 33,307 | $ 31,122 | $ 21,391 | $ 24,336 | $ 115,308 | $ 110,156 | $ 83,227 |
Mine gross profit | 7,956 | 3,293 | 9,521 | 12,920 | 15,272 | 11,201 | 5,226 | 10,416 | 33,690 | 42,115 | 22,433 |
Net income (loss) | $ 858 | $ (781) | $ 3,754 | $ 5,457 | $ (5,671) | $ 4,581 | $ 864 | $ 4,376 | $ 9,288 | $ 4,150 | $ 4,387 |
Net income (loss) per common share: | |||||||||||
Basic and diluted | $ (0.11) | $ 0.08 | $ 0.02 | $ 0.08 | $ 0.16 | $ 0.07 | $ 0.08 | ||||
Basic | $ 0.01 | $ (0.01) | $ 0.07 | $ 0.10 | |||||||
Diluted | $ 0.01 | $ (0.01) | $ 0.06 | $ 0.09 | |||||||
Weighted average shares outstanding: | |||||||||||
Basic | 58,049,972 | 57,642,966 | 57,315,472 | 57,120,077 | 56,892,583 | 56,888,115 | 56,839,823 | 56,796,751 | 57,534,830 | 56,854,670 | 55,140,237 |
Diluted | 58,571,874 | 57,642,966 | 58,314,123 | 57,911,299 | 57,452,314 | 57,455,805 | 57,375,938 | 57,991,663 | 58,369,666 | 57,594,993 | 55,725,206 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | Mar. 07, 2019 | Dec. 31, 2018 |
Subsequent Events | ||
Sale of shares | 1,131,755 | |
ATM Agreement [Member] | ||
Subsequent Events | ||
Sale of shares | 2,537,130 | |
Net proceeds from sale of shares | $ 10.8 |