Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 05, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | GOLD RESOURCE CORP | |
Entity Central Index Key | 0001160791 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 65,585,271 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 7,939 | $ 7,762 |
Gold and silver rounds/bullion | 3,874 | 3,637 |
Accounts receivable | 5,630 | 1,744 |
Inventories, net | 26,531 | 14,342 |
Prepaid taxes | 3,342 | 1,126 |
Prepaid expenses and other current assets | 3,786 | 2,745 |
Total current assets | 51,102 | 31,356 |
Property, plant and mine development, net | 120,154 | 111,242 |
Operating lease assets, net | 11,043 | |
Deferred tax assets, net | 6,284 | 7,372 |
Other non-current assets | 3,144 | 361 |
Total assets | 191,727 | 150,331 |
Current liabilities: | ||
Accounts payable | 17,149 | 12,429 |
Loans payable, current | 862 | 765 |
Finance lease liabilities, current | 434 | 412 |
Operating lease liabilities, current | 8,207 | |
Mining royalty taxes payable, net | 849 | 1,926 |
Accrued expenses and other current liabilities | 2,909 | 2,030 |
Total current liabilities | 30,410 | 17,562 |
Reclamation and remediation liabilities | 4,055 | 3,298 |
Loans payable, long-term | 1,226 | 1,378 |
Finance lease liabilities, long-term | 661 | 831 |
Operating lease liabilities, long-term | 2,842 | |
Total liabilities | 39,194 | 23,069 |
Shareholders' equity: | ||
Common stock - $0.001 par value, 100,000,000 shares authorized: 64,811,555 and 58,850,431 shares outstanding at June 30, 2019 and December 31, 2018, respectively | 128 | 69 |
Additional paid-in capital | 144,750 | 121,592 |
Retained earnings | 14,710 | 12,656 |
Treasury stock at cost, 336,398 shares | (5,884) | (5,884) |
Accumulated other comprehensive loss | (1,171) | (1,171) |
Total shareholders' equity | 152,533 | 127,262 |
Total liabilities and shareholders' equity | $ 191,727 | $ 150,331 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
CONDENSED 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 | 64,811,555 | 58,850,431 |
Treasury stock, shares | 336,398 | 336,398 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Sales, net | $ 29,374 | $ 30,768 | $ 55,952 | $ 62,919 |
Depreciation and amortization | 4,243 | 3,579 | 7,687 | 7,072 |
Reclamation and remediation | 41 | 89 | 57 | 292 |
Total mine cost of sales | 22,883 | 21,247 | 44,022 | 40,478 |
Mine gross profit | 6,491 | 9,521 | 11,930 | 22,441 |
Costs and expenses: | ||||
General and administrative expenses | 2,708 | 2,225 | 4,719 | 4,579 |
Other (income) expense, net | (107) | 510 | (82) | 788 |
Total costs and expenses | 3,232 | 3,986 | 6,718 | 7,803 |
Income before income taxes | 3,259 | 5,535 | 5,212 | 14,638 |
Provision for income taxes | 1,461 | 1,781 | 2,532 | 5,427 |
Net income | $ 1,798 | $ 3,754 | $ 2,680 | $ 9,211 |
Net income per common share: | ||||
Basic | $ 0.03 | $ 0.07 | $ 0.04 | $ 0.16 |
Diluted | $ 0.03 | $ 0.06 | $ 0.04 | $ 0.16 |
Weighted average shares outstanding: | ||||
Basic | 62,778,445 | 57,315,472 | 61,729,871 | 57,218,389 |
Diluted | 63,066,616 | 58,314,123 | 62,079,859 | 58,153,350 |
Production costs | ||||
Total mine cost of sales | $ 18,599 | $ 17,579 | $ 36,278 | $ 33,114 |
Exploration expenses | ||||
Total mine cost of sales | 631 | 1,251 | 2,081 | 2,436 |
Costs and expenses: | ||||
Total costs and expenses | $ 631 | $ 1,251 | $ 2,081 | $ 2,436 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY - USD ($) $ in Thousands | Common Shares | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Total |
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 | |||||
Balance at Dec. 31, 2017 | $ 57 | |||||
Stock-based compensation | 485 | 485 | ||||
Net stock options exercised | $ 1 | 1,066 | 1,067 | |||
Net stock options exercised (in shares) | 660,604 | |||||
Common stock issued for vested restricted stock units (in shares) | 14,964 | |||||
Dividends declared | (574) | (574) | ||||
Net income | 9,211 | 9,211 | ||||
Balance at Jun. 30, 2018 | 116,135 | 13,157 | (5,884) | (1,171) | 122,295 | |
Balance (in shares) at Jun. 30, 2018 | 57,928,450 | |||||
Balance at Jun. 30, 2018 | $ 58 | |||||
Balance at Mar. 31, 2018 | 115,007 | 9,691 | (5,884) | (1,171) | 117,700 | |
Balance (in shares) at Mar. 31, 2018 | 57,567,191 | |||||
Balance at Mar. 31, 2018 | $ 57 | |||||
Stock-based compensation | 249 | 249 | ||||
Net stock options exercised | $ 1 | 879 | 880 | |||
Net stock options exercised (in shares) | 361,259 | |||||
Dividends declared | (288) | (288) | ||||
Net income | 3,754 | 3,754 | ||||
Balance at Jun. 30, 2018 | 116,135 | 13,157 | (5,884) | (1,171) | 122,295 | |
Balance (in shares) at Jun. 30, 2018 | 57,928,450 | |||||
Balance at Jun. 30, 2018 | $ 58 | |||||
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 | |||||
Balance at Dec. 31, 2018 | $ 69 | 69 | ||||
Stock-based compensation | 1,214 | 1,214 | ||||
Net stock options exercised | $ 1 | 97 | 98 | |||
Net stock options exercised (in shares) | 69,448 | |||||
Common stock issued for vested restricted stock units (in shares) | 14,804 | |||||
Dividends declared | (626) | (626) | ||||
Issuance of stock, net of issuance costs | $ 58 | 21,847 | 21,905 | |||
Issuance of stock, net of issuance costs (in shares) | 5,876,872 | |||||
Net income | 2,680 | 2,680 | ||||
Balance at Jun. 30, 2019 | 144,750 | 14,710 | (5,884) | (1,171) | 152,533 | |
Balance (in shares) at Jun. 30, 2019 | 65,147,953 | |||||
Balance at Jun. 30, 2019 | $ 128 | 128 | ||||
Balance at Mar. 31, 2019 | 132,903 | 13,231 | (5,884) | (1,171) | 139,174 | |
Balance (in shares) at Mar. 31, 2019 | 61,833,211 | |||||
Balance at Mar. 31, 2019 | $ 95 | |||||
Stock-based compensation | 878 | $ 878 | ||||
Net stock options exercised (in shares) | 0 | |||||
Dividends declared | (319) | $ (319) | ||||
Issuance of stock, net of issuance costs | $ 33 | 10,969 | 11,002 | |||
Issuance of stock, net of issuance costs (in shares) | 3,314,742 | |||||
Net income | 1,798 | 1,798 | ||||
Balance at Jun. 30, 2019 | $ 144,750 | $ 14,710 | $ (5,884) | $ (1,171) | 152,533 | |
Balance (in shares) at Jun. 30, 2019 | 65,147,953 | |||||
Balance at Jun. 30, 2019 | $ 128 | $ 128 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 2,680 | $ 9,211 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Deferred income taxes | 1,275 | (1,134) |
Depreciation and amortization | 7,921 | 7,386 |
Stock-based compensation | 1,214 | 485 |
Other operating adjustments | (293) | 364 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (3,886) | 1,157 |
Inventories | (8,744) | (897) |
Prepaid expenses and other current assets | 97 | 7 |
Other non-current assets | (2,012) | 134 |
Accounts payable and other accrued liabilities | 6,183 | 4,564 |
Mining royalty and income taxes payable, net | (3,328) | (1,815) |
Net cash (used in) provided by operating activities | 1,107 | 19,462 |
Cash flows from investing activities: | ||
Capital expenditures | (21,438) | (15,108) |
Other investing activities | 1 | 4 |
Net cash used in investing activities | (21,437) | (15,104) |
Cash flows from financing activities: | ||
Proceeds from the exercise of stock options | 98 | 1,124 |
Proceeds from at-the-market sales | 21,807 | |
Dividends paid | (617) | (571) |
Repayment of loan payable | (385) | (281) |
Repayment of finance leases | (204) | (189) |
Net cash provided by (used in) financing activities | 20,699 | 83 |
Effect of exchange rate changes on cash and cash equivalents | (192) | (186) |
Net increase in cash and cash equivalents | 177 | 4,255 |
Cash and cash equivalents at beginning of period | 7,762 | 22,390 |
Cash and cash equivalents at end of period | 7,939 | 26,645 |
Supplemental Cash Flow Information | ||
Interest expense paid | 79 | 94 |
Income and mining taxes paid | 2,897 | 6,298 |
Non-cash investing activities: | ||
Change in accrued capital expenditures | (1,214) | $ 918 |
Change in estimate for asset retirement cost | 638 | |
Equipment purchased through loan payable | 330 | |
Equipment purchased under finance leases | $ 56 |
Basis of Preparation of Financi
Basis of Preparation of Financial Statements | 6 Months Ended |
Jun. 30, 2019 | |
Basis of Preparation of Financial Statements | |
Basis of Preparation of Financial Statements | 1. Basis of Preparation of Financial Statements The interim Condensed Consolidated Financial Statements (“interim financial statements”) of Gold Resource Corporation and its subsidiaries (collectively, the “Company”) are unaudited and have been prepared in accordance with the rules of the Securities and Exchange Commission for interim statements. Certain information and footnote disclosures required by United States Generally Accepted Accounting Principles (“U.S. GAAP”) have been condensed or omitted as permitted by such rules, although the Company believes that the disclosures included are adequate to make the information presented not misleading. In the opinion of management, all adjustments (including normal recurring adjustments) and disclosures necessary for a fair presentation of these interim financial statements have been included. The results reported in these interim financial statements are not necessarily indicative of the results that may be reported for the entire year. These interim financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2018 included in the Company’s annual report on Form 10-K. The year-end balance sheet data was derived from the audited financial statements. Unless otherwise noted, there have been no material changes to the footnotes from those accompanying the audited consolidated financial statements contained in the Company’s annual report on Form 10-K. Certain items in the prior period’s condensed consolidated financial statements have been reclassified to conform to the current presentation. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2019 | |
Recent Accounting Pronouncements | |
Recent Accounting Pronouncements | 2. Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements Accounting Standards Update No. 2016-02 — Leases (Topic 842 ). In February 2016, the Financial Accounting Standards Board (“FASB”) issued a new standard related to leases to increase transparency and comparability among organizations by requiring the recognition of right-of-use (“ROU”) assets and lease liabilities on the balance sheet. Most prominent among the changes in the standard is the recognition of ROU assets and lease liabilities by lessees for those leases classified as operating leases. Under the standard, disclosures are required to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. Reporting entities are also required to recognize and measure leases existing at, or entered into after, the beginning of the earliest comparative period presented using a modified retrospective approach, with certain practical expedients available. The Company adopted the standard effective January 1, 2019 and elected certain available practical expedients and implemented internal controls and key system functionality to enable the preparation of financial information on adoption. The standard had a material impact on the Company’s consolidated balance sheets but did not have a material impact on its consolidated statements of operations. The most significant impact was the recognition of ROU assets and the current and long-term components of lease liabilities for operating leases, while the Company’s accounting for finance leases remained substantially unchanged. See Note 13 for more information. Recently Issued Accounting Pronouncements 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 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 a 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 were 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 | 6 Months Ended |
Jun. 30, 2019 | |
Revenue | |
Revenue | 3. Revenue The Company derives its revenue from the sale of d oré and concentrates. The following table presents the Company’s net sales for each period presented, disaggregated by source: Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 (in thousands) (in thousands) Doré sales Gold $ 3,110 $ 1,722 $ 4,793 $ 3,631 Silver 651 472 1,051 769 Less: Refining charges (61) (38) (99) (63) Total doré sales, net 3,700 2,156 5,745 4,337 Concentrate sales Gold 6,740 5,396 11,305 10,937 Silver 5,542 8,803 9,303 14,884 Copper 2,621 2,638 4,735 5,018 Lead 3,999 3,498 7,394 7,345 Zinc 10,852 11,841 23,123 25,225 Less: Treatment and refining charges (3,608) (1,261) (7,018) (3,095) Total concentrate sales, net 26,146 30,915 48,842 60,314 Realized/unrealized embedded derivative, net (472) (2,303) 1,365 (1,732) Total sales, net $ 29,374 $ 30,768 $ 55,952 $ 62,919 |
Gold and Silver Rounds_Bullion
Gold and Silver Rounds/Bullion | 6 Months Ended |
Jun. 30, 2019 | |
Gold and Silver Rounds/Bullion | |
Gold and Silver Rounds/Bullion | 4. 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. At June 30, 2019 and December 31, 2018, the Company’s holdings of rounds/bullion, using quoted market prices, consisted of the following: 2019 2018 Ounces Per Ounce Amount Ounces Per Ounce Amount (in thousands) (in thousands) Gold 1,888 $ 1,409 $ 2,660 1,888 $ 1,279 $ 2,415 Silver 79,738 $ 15.22 1,214 79,864 $ 15.30 1,222 Total holdings $ 3,874 $ 3,637 |
Inventories, net
Inventories, net | 6 Months Ended |
Jun. 30, 2019 | |
Inventories, net | |
Inventories, net | 5. Inventories, net At June 30, 2019 and December 31, 2018, inventories, net consisted of the following: 2019 2018 (in thousands) Stockpiles - underground mine $ 1,934 $ 2,365 Stockpiles - open pit mine 2,785 414 Leach pad 8,724 376 Concentrates 2,539 1,231 Doré 2,081 1,289 Subtotal - product inventories 18,063 5,675 Materials and supplies (1) 8,468 8,667 Total $ 26,531 $ 14,342 (1) Net of reserve for obsolescence of $857. In addition to the inventory above, as of June 30, 2019, the Company has $2.8 million of low-grade ore stockpile inventory included in other non-current assets on the accompanying Consolidated Balance Sheet. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Taxes | |
Income Taxes | 6. Income Taxes The Company recorded income tax expense of $1.5 million and $2.5 million for the three and six months ended June 30, 2019, respectively. For the three and six months ended June 30, 2018, the Company recorded income tax expense of $1.8 million and $5.4 million, respectively. In accordance with applicable accounting rules, the interim provision for taxes was calculated by using the consolidated effective tax rate. The consolidated effective tax rate is a function of the combined effective tax rates for the jurisdictions in which the Company operates. Variations in the relative proportions of jurisdictional income could result in fluctuations to the Company’s consolidated effective tax rate. The Company’s losses in the U.S. are taxed at 21% which is then netted against the Company’s income in Mexico which is taxed at 37.5% (30% income tax and 7.5% mining tax) which has resulted in a consolidated effective tax rate above statutory rates. 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 to foreign parent companies on all post-2013 earnings. Dividends from earnings generated prior to 2014 were exempted from the new dividend withholding tax. The Company commenced distribution of 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. Based on the Company’s review of these requirements, it estimates it will pay a 5% withholding tax on dividends received from Mexico in 2019. The impact of the planned annual dividends for 2019 is reflected in the estimated annual effective tax rate. As of June 30, 2019, the Company believes that it has no liability for uncertain tax positions. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 6 Months Ended |
Jun. 30, 2019 | |
Prepaid Expenses And Other Current Assets | |
Prepaid Expenses and Other Current Assets | 7. Prepaid Expenses and Other Current Assets At June 30, 2019 and December 31, 2018, prepaid expenses and other current assets consisted of the following: 2019 2018 (in thousands) Advances to suppliers $ 188 $ 289 Prepaid insurance 1,529 1,179 Vendor deposits 188 236 IVA taxes receivable, net 1,098 538 Prepaid royalties 410 295 Other current assets 373 208 Total $ 3,786 $ 2,745 |
Property, Plant and Mine Develo
Property, Plant and Mine Development, net | 6 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Mine Development, net | |
Property, Plant and Mine Development,net | 8. Property, Plant and Mine Development, net At June 30, 2019 and December 31, 2018, property, plant and mine development, net consisted of the following: 2019 2018 (in thousands) Asset retirement costs $ 1,878 $ 1,240 Construction-in-progress (1) 22,028 34,335 Furniture and office equipment 1,976 1,861 Leach pad and ponds 5,621 - Land 242 242 Light vehicles and other mobile equipment 2,569 2,508 Machinery and equipment 32,379 27,485 Mill facilities and infrastructure 19,252 11,712 Mineral interests and mineral rights 18,195 17,958 Mine development 84,737 69,487 Software and licenses 1,659 1,659 Subtotal (2) (3) 190,536 168,487 Accumulated depreciation and amortization (70,382) (57,245) Total $ 120,154 $ 111,242 (1) Nevada construction-in-progress costs of $10.1 million and $21.6 million at June 30, 2019 and December 31, 2018, respectively. Mexico construction-in-progress of $11.9 million and $12.7 million at June 30, 2019 and December 31, 2018, respectively. (2) Includes $1.8 million and $1.6 million of assets recorded under finance leases at June 30, 2019 and December 31, 2018, respectively. Please see Note 13 for additional information. (3) Includes accrued capital expenditures of $3.1 million and $4.3 million at June 30, 2019 and December 31, 2018, respectively. The Company recorded depreciation and amortization expense of $4.3 million and $7.9 million for the three and six months ended June 30, 2019, respectively. For the three and six months ended June 30, 2018, the Company recorded $3.7 million and $7.4 million, respectively. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 6 Months Ended |
Jun. 30, 2019 | |
Accrued Expenses and Other Current Liabilities | |
Accrued Expenses and Other Current Liabilities | 9. Accrued Expenses and Other Current Liabilities At June 30, 2019 and December 31, 2018, accrued expenses and other current liabilities consisted of the following: 2019 2018 (in thousands) Accrued insurance $ 751 $ 364 Accrued royalty payments 1,981 1,432 Dividends payable 107 98 Other payables 70 136 Total $ 2,909 $ 2,030 |
Reclamation and Remediation
Reclamation and Remediation | 6 Months Ended |
Jun. 30, 2019 | |
Reclamation And Remediation | |
Reclamation and Remediation | 10. Reclamation and Remediation The following table presents the changes in reclamation and remediation obligations for the six months ended June 30, 2019 and year ended December 31, 2018: 2019 2018 (in thousands) Reclamation liabilities – balance at beginning of period $ 2,009 $ 2,005 Changes in estimate - - Foreign currency exchange loss 53 4 Reclamation liabilities – balance at end of period 2,062 2,009 Asset retirement obligation – balance at beginning of period 1,289 941 Changes in estimate 638 271 Accretion expense 50 78 Foreign currency exchange loss 16 (1) Asset retirement obligation – balance at end of period 1,993 1,289 Total period end balance $ 4,055 $ 3,298 The Company’s reclamation and remediation liabilities are related to the Aguila project in Mexico. The Company’s asset retirement obligations were discounted using a credit adjusted risk-free rate of 8%. As of June 30, 2019 and December 31, 2018, the Company recorded an asset retirement obligation of $1.4 million and $0.8 million, respectively, related to the Isabella Pearl project. As of June 30, 2019 and December 31, 2018, the Company’s asset retirement obligation related to the Aguila project in Mexico was $0.6 million and $0.5 million, respectively. |
Loans Payable
Loans Payable | 6 Months Ended |
Jun. 30, 2019 | |
Loans Payable | |
Loans Payable | 11. 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 $0.08 million. As of June 30, 2019 and December 31, 2018, there was an outstanding balance of $2.1 million and $2.1 million, respectively. Scheduled minimum repayments are $0.4 million in 2019, $0.9 million in 2020, $0.7 million in 2021, and $0.1 million in 2022. 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. The fair value of the loans payable, based on Level 2 inputs, approximated the outstanding balance at both June 30, 2019 and December 31, 2018. See Note 19 for the definition of a Level 2 input. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies | |
Commitments and Contingencies | 12. Commitments and Contingencies The Company has a Contract Mining Agreement with a contract miner relating to mining activities at its Isabella Pearl project. Included in this agreement is an embedded lease for the mining equipment for which the Company has recognized a right-of-use asset and corresponding operating lease liability. Please see Note 13 for more information. In addition to the embedded lease payments, the Company pays the contract miner operational costs in the normal course of business. These costs represent the remaining future contractual payments for the Contract Mining Agreement over its term. The contractual payments are determined by rates within the Contract Mining Agreement, estimated tonnes moved and bank cubic yards for drilling and blasting. As of June 30, 2019, total estimated contractual payments remaining, excluding embedded lease payments, are $4.7 million and $8.7 million for the years ended December 31, 2019 and 2020, respectively. As of June 30, 2019, the Company has equipment purchase commitments aggregating approximately $2.0 million. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases | |
Leases | 13. Leases Operating Leases As discussed in Note 2 to the interim financial statements (see "Recent Accounting Pronouncements"), the Company adopted the new lease accounting standard on January 1, 2019. Upon adoption, the Company recognized operating lease assets and corresponding operating lease liabilities totaling $14.2 million. The Company’s finance leases did not change from December 31, 2018. The Company leases office equipment and administrative offices from third parties as well as an administrative office from a related party. In addition, the Company has an embedded lease in its Contract Mining Agreement. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases as incurred over the lease term. For leases beginning in 2019 and later, the Company accounts for lease components (e.g., fixed payments including rent, real estate taxes and insurance costs) separately from the non-lease components (e.g., common-area maintenance costs). Some leases include one or more options to renew, with renewal terms that can extend the lease term from one to two years. The exercise of lease renewal options is at the Company’s sole discretion. The depreciable life of assets are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. The weighted average remaining lease term for the Company’s operating leases as of June 30, 2019 is 1.37 years. The discount rate implicit within the Company’s leases is generally not determinable and therefore the Company determines the discount rate based on its incremental borrowing rate. The incremental borrowing rate for the Company’s leases is determined based on lease term adjusted for impacts of collateral. The weighted average discount rate used to measure the Company’s operating lease liabilities as of June 30, 2019 was 4.48%. There are no material residual value guarantees and no restrictions or covenants imposed by the Company’s leases. Most of the Company’s leases have a standard payment schedule; however, the payments for its mining equipment embedded lease are determined by tonnage hauled. This embedded lease is within a Contract Mining Agreement entered into for the mining activities at the Company’s Isabella Pearl project. The payments, amortization of the right-of-use asset, and interest vary immaterially from forecasted amounts due to variable conditions at the mine. During the three months ended June 30, 2019, the Company capitalized variable lease costs of $0.8 million to Inventory and $0.9 million to Property, plant, and mine development, respectively. During the six months ended June 30, 2019, the Company capitalized variable lease costs of $1.5 million to Inventory and $1.8 million to Property, plant, and mine development, respectively. The components of all other lease costs recognized within the Company’s Condensed Consolidated Statements of Operations are as follows: Three months ended June 30, Six months ended June 30, Lease Cost Type Condensed Consolidated Statements of Operation Location 2019 2019 (in thousands) Operating lease cost General and administrative expenses $ 21 $ 41 Operating lease cost Production costs 19 38 Related party lease cost General and administrative expenses 10 21 Short term lease cost Production costs 113 304 Maturities of operating lease liabilities as of June 30, 2019 are as follows (in thousands) : Year Ending December 31: 2019 $ 4,401 2020 6,841 2021 151 2022 13 Thereafter - Total lease payments 11,406 Less imputed interest (357) Present value of minimum payments 11,049 Less: current portion (8,207) Present value of minimum payments $ 2,842 As previously reported in our Annual Report on Form 10-K for the year ended December 31, 2018 and under legacy lease accounting (ASC 840), future minimum lease payments, including both the future minimum lease payments and the other non-lease element payments for the Contract Mining Agreement, as of December 31, 2018 are as follows (in thousands) : Year Ending December 31: 2019 $ 16,259 2020 14,839 2021 72 2022 - Thereafter - Total lease payments $ 31,170 Finance Leases The Company has finance 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. The weighted average discount rate for the Company’s finance leases is 5.80%. Scheduled minimum annual payments as of June 30, 2019 are as follows (in thousands) : Year Ending December 31: 2019 $ 243 2020 482 2021 418 2022 13 Thereafter 16 Total minimum obligations 1,172 Less: interest portion (77) Present value of minimum payments 1,095 Less: current portion (434) Present value of minimum payments $ 661 Scheduled minimum annual payments as of December 31, 2018 were as follows (in thousands) : Year Ending December 31: 2019 $ 470 2020 470 2021 406 2022 - Thereafter - Total minimum obligations 1,346 Less: interest portion (103) Present value of minimum payments 1,243 Less: current portion (412) Present value of minimum payments $ 831 The weighted average remaining lease term for the Company’s finance leases as of June 30, 2019 is 2.50 years. Supplemental cash flow information related to the Company’s operating and finance leases is as follows for the three months and six ended June 30, 2019: Three months ended June 30, Six months ended June 30, 2019 2019 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 834 $ 1,632 Operating cash flows from finance leases 15 32 Investing cash flows from operating lease 942 1,788 Financing cash flows from finance leases 111 204 |
Embedded Derivatives
Embedded Derivatives | 6 Months Ended |
Jun. 30, 2019 | |
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 as of June 30, 2019 with the quantities of metals under contract subject to final pricing occurring through August 2019: Gold Silver Copper Lead Zinc (ounces) (ounces) (tonnes) (tonnes) (tonnes) Under contract 6,301 434,015 583 2,271 4,168 Average forward price (per ounce or tonne) $ 1,320 $ 14.93 $ 6,166 $ 1,900 $ 2,773 |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2019 | |
Stock-Based Compensation | |
Stock-Based Compensation | 15. 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 allows for the issuance of up to 5 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. During the six months ended June 30, 2019 and 2018, a total of 14,804 and 14,964 restricted stock units (“RSUs”) vested, respectively, and shares were issued with an intrinsic and a fair value of $0.1 million and $0.1 million, respectively. During the six months ended June 30, 2019, stock options to purchase an aggregate of 274,750 shares of the Company’s common stock were exercised at a weighted average exercise price of $3.95 per share. Of that amount, 250,000 of the options were exercised on a net exercise basis, resulting in 44,698 shares being delivered. The remaining 24,750 options were exercised for cash . No stock options were exercised during the three months ended June 30, 2019. During the three months ended June 30, 2018, stock options to purchase an aggregate of 361,259 shares of the Company’s common stock were exercised for cash at a weighted average exercise price of $2.44 per share . During the six months ended June 30, 2018, stock options to purchase an aggregate of 1,361,259 shares of the Company’s common stock were exercised at a weighted average exercise price of $3.14 per share . Of that amount, 945,000 of the options were exercised on a net exercise basis, resulting in 244,345 shares being delivered. The remaining 416,259 options were exercised for cash. Stock-based compensation expense for stock options and RSUs for the periods presented is as follows: Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 (in thousands) (in thousands) Stock options $ 756 $ 181 $ 967 $ 355 Restricted stock units 122 68 247 130 Total $ 878 $ 249 $ 1,214 $ 485 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: Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 (in thousands) (in thousands) Production costs $ (23) $ 20 $ 6 $ 12 General and administrative expenses 880 201 1,197 424 Exploration expense 21 28 11 49 Total $ 878 $ 249 $ 1,214 $ 485 The Company has a short-term incentive plan for its executive officers that provides for the grant of either cash or stock-based bonus awards payable upon achievement of specified performance metrics (the “STIP”). As of June 30, 2019, nil has been accrued related to the STIP . |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2019 | |
Shareholders' Equity | |
Shareholders' Equity | 16. Shareholders’ Equity 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 3,314,742 shares and 5,851,872 shares of the Company’s common stock were sold through the ATM Agreement during the three and six months ended June 30, 2019, for net proceeds to the Company, after deducting the Agent’s commissions and other expenses, of $11.0 million and $21.8 million, respectively. During the six months ended June 30, 2019, the Company issued 25,000 shares of its common stock as payment for a one-year investor relations agreement with a third-party. During the three and six months ended June 30, 2019 and 2018, the Company declared and paid dividends of $0.005 per common share for an aggregate total of $0.3 million and $0.6 million, respectively. |
Other Expense, Net
Other Expense, Net | 6 Months Ended |
Jun. 30, 2019 | |
Other Expense, Net | |
Other Expense, Net | 17. Other Expense (Income), net Other expense, net, for the periods presented consisted of the following: Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 (in thousands) Unrealized currency exchange loss (gain) $ 14 $ 1,100 $ (113) $ 74 Realized currency exchange loss (gain) 21 (735) 172 589 Unrealized (gain) loss from gold and silver rounds/bullion, net (1) (226) 159 (243) 141 Other expense (income) 84 (14) 102 (16) Total $ (107) $ 510 $ (82) $ 788 (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. For additional information regarding the Company’s fair value measurements and investments, please see Note 19. |
Net Income per Common Share
Net Income per Common Share | 6 Months Ended |
Jun. 30, 2019 | |
Net Income per Common Share | |
Net Income per Common Share | 18. Net Income per Common Share Basic earnings per common share is calculated based on the weighted average number of common shares outstanding for the period. Diluted earnings per common share is calculated based on the assumption that stock options and other dilutive securities outstanding, which have an exercise price less than the average market price of the Company’s common shares 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 3.9 million and 3.0 million shares of common stock at weighted average exercise prices of $9.96 and $11.65 were outstanding at June 30, 2019 and 2018, 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 are anti-dilutive. Basic and diluted net income per common share is calculated as follows: Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 Net income (in thousands) $ 1,798 $ 3,754 $ 2,680 $ 9,211 Basic weighted average shares of common stock outstanding 62,778,445 57,315,472 61,729,871 57,218,389 Dilutive effect of share-based awards 288,171 998,651 349,988 934,961 Diluted weighted average common shares outstanding 63,066,616 58,314,123 62,079,859 58,153,350 Net income per share: Basic $ 0.03 $ 0.07 $ 0.04 $ 0.16 Diluted $ 0.03 $ 0.06 $ 0.04 $ 0.16 |
Fair Value Measurement
Fair Value Measurement | 6 Months Ended |
Jun. 30, 2019 | |
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 table sets forth certain of the Company’s assets measured at fair value by level within the fair value hierarchy as of June 30, 2019 and December 31, 2018: 2019 2018 Input Hierarchy Level (in thousands) Cash and cash equivalents: Bank deposits $ 7,939 $ 7,762 Level 1 Gold and silver rounds/bullion 3,874 3,637 Level 1 Accounts receivable: Receivables from provisional concentrate sales 5,630 1,744 Level 2 Total $ 17,443 $ 13,143 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 4 for additional information. 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 June 30, 2019 and December 31, 2018, the Company had unrealized losses of $0.4 million and $0.1 million, respectively, included in its accounts receivable on the accompanying Condensed 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 Condensed Consolidated Statements of Operations as shown in the following table: Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 Statement of Operations Classification (in thousands) Realized/unrealized derivative gain (loss), net $ (472) $ (2,303) $ 1,365 $ (1,732) Sales, net Realized/unrealized gold and silver rounds/bullion gain (loss), net $ 224 $ (160) $ 239 $ (144) Other expense, net Realized/Unrealized Derivatives The following tables summarize the Company’s realized/unrealized derivatives for the periods presented (in thousands) : Gold Silver Copper Lead Zinc Total Three months ended June 30, 2019 Realized gain (loss) $ 48 $ 36 $ 54 $ (34) $ 699 $ 803 Unrealized (loss) gain (13) (58) (106) (74) (1,024) (1,275) Total realized/unrealized derivatives, net $ 35 $ (22) $ (52) $ (108) $ (325) $ (472) Gold Silver Copper Lead Zinc Total Three months ended June 30, 2018 Realized gain (loss) $ - $ - $ - $ - $ - $ - Unrealized gain (loss) (38) 13 (103) (138) (2,037) (2,303) Total realized/unrealized derivatives, net $ (38) $ 13 $ (103) $ (138) $ (2,037) $ (2,303) Gold Silver Copper Lead Zinc Total Six months ended June 30, 2019 Realized gain (loss) $ 172 $ 96 $ 68 $ (19) $ 1,297 $ 1,614 Unrealized gain (loss) (36) (60) 47 (77) (123) (249) Total realized/unrealized derivatives, net $ 136 $ 36 $ 115 $ (96) $ 1,174 $ 1,365 Gold Silver Copper Lead Zinc Total Six months ended June 30, 2018 Realized gain (loss) $ 14 $ (53) $ 53 $ (5) $ 991 $ 1,000 Unrealized gain 62 162 (203) (161) (2,592) (2,732) Total realized/unrealized derivatives, net $ 76 $ 109 $ (150) $ (166) $ (1,601) $ (1,732) |
Supplementary Cash Flow Informa
Supplementary Cash Flow Information | 6 Months Ended |
Jun. 30, 2019 | |
Supplementary Cash Flow Information | |
Supplementary Cash Flow Information | 20. Supplementary Cash Flow Information Other operating adjustments and write-downs within the net cash provided by operations on the Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2019 and 2018 consisted of the following: 2019 2018 (in thousands) Unrealized (gain) on gold and silver rounds/bullion $ (243) $ 141 Unrealized foreign currency exchange (gain) (113) 74 Other 63 149 Total other operating adjustments $ (293) $ 364 |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2019 | |
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. Inter-company 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 Three months ended June 30, 2019 Revenue $ 27,834 $ 1,540 $ - $ 29,374 Exploration expense 527 65 39 631 Net income (loss) 3,963 445 (2,610) 1,798 Capital expenditures 4,653 4,714 - 9,367 Mexico Nevada Corporate and Other Consolidated Three months ended June 30, 2018 Revenue $ 30,768 $ - $ - $ 30,768 Exploration expense 490 726 35 1,251 Net income (loss) 7,036 (791) (2,491) 3,754 Capital expenditures 5,832 3,055 - 8,887 Mexico Nevada Corporate and Other Consolidated Six months ended June 30, 2019 Revenue $ 54,412 $ 1,540 $ - $ 55,952 Exploration expense 1,595 448 38 2,081 Net income (loss) 7,359 26 (4,705) 2,680 Capital expenditures (1) 9,335 11,913 - 21,248 Mexico Nevada Corporate and Other Consolidated Six months ended June 30, 2018 Revenue $ 62,919 $ - $ - $ 62,919 Exploration expense 986 1,377 73 2,436 Net income (loss) 15,624 (1,499) (4,914) 9,211 Capital expenditures (2) 11,704 4,322 - 16,026 (1) Includes a decrease in accrued capital expenditures of $1,214 and non-cash additions of $1,024; consolidated capital expenditures on a cash basis were $21,438. (2) Includes an increase in accrued capital expenditures of $918; consolidated capital expenditures on a cash basis were $15,108 . Total asset balances, excluding intercompany balances, at June 30, 2019 and December 31, 2018 are as follows: 2019 2018 (in thousands) Mexico $ 97,821 $ 91,590 Nevada 79,013 46,677 Corporate and Other 14,893 12,064 Consolidated $ 191,727 $ 150,331 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Events | |
Subsequent Events | 22. Subsequent Events Subsequent to June 30, 2019 and through August 5, 2019, the Company sold 773,716 shares under its ATM agreement for net proceeds of $2.6 million. |
Basis of Preparation of Finan_2
Basis of Preparation of Financial Statements (Policy) | 6 Months Ended |
Jun. 30, 2019 | |
Basis of Preparation of Financial Statements | |
Basis of Presentation | The interim Condensed Consolidated Financial Statements (“interim financial statements”) of Gold Resource Corporation and its subsidiaries (collectively, the “Company”) are unaudited and have been prepared in accordance with the rules of the Securities and Exchange Commission for interim statements. Certain information and footnote disclosures required by United States Generally Accepted Accounting Principles (“U.S. GAAP”) have been condensed or omitted as permitted by such rules, although the Company believes that the disclosures included are adequate to make the information presented not misleading. In the opinion of management, all adjustments (including normal recurring adjustments) and disclosures necessary for a fair presentation of these interim financial statements have been included. The results reported in these interim financial statements are not necessarily indicative of the results that may be reported for the entire year. These interim financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2018 included in the Company’s annual report on Form 10-K. The year-end balance sheet data was derived from the audited financial statements. Unless otherwise noted, there have been no material changes to the footnotes from those accompanying the audited consolidated financial statements contained in the Company’s annual report on Form 10-K. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements (Policy) | 6 Months Ended |
Jun. 30, 2019 | |
Recent Accounting Pronouncements | |
Recently Accounting Pronouncements | Recently Adopted Accounting Pronouncements Accounting Standards Update No. 2016-02 — Leases (Topic 842 ). In February 2016, the Financial Accounting Standards Board (“FASB”) issued a new standard related to leases to increase transparency and comparability among organizations by requiring the recognition of right-of-use (“ROU”) assets and lease liabilities on the balance sheet. Most prominent among the changes in the standard is the recognition of ROU assets and lease liabilities by lessees for those leases classified as operating leases. Under the standard, disclosures are required to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. Reporting entities are also required to recognize and measure leases existing at, or entered into after, the beginning of the earliest comparative period presented using a modified retrospective approach, with certain practical expedients available. The Company adopted the standard effective January 1, 2019 and elected certain available practical expedients and implemented internal controls and key system functionality to enable the preparation of financial information on adoption. The standard had a material impact on the Company’s consolidated balance sheets but did not have a material impact on its consolidated statements of operations. The most significant impact was the recognition of ROU assets and the current and long-term components of lease liabilities for operating leases, while the Company’s accounting for finance leases remained substantially unchanged. See Note 13 for more information. Recently Issued Accounting Pronouncements 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 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 a 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 were 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 (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue | |
Revenue from the sale of dore and concentrate | Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 (in thousands) (in thousands) Doré sales Gold $ 3,110 $ 1,722 $ 4,793 $ 3,631 Silver 651 472 1,051 769 Less: Refining charges (61) (38) (99) (63) Total doré sales, net 3,700 2,156 5,745 4,337 Concentrate sales Gold 6,740 5,396 11,305 10,937 Silver 5,542 8,803 9,303 14,884 Copper 2,621 2,638 4,735 5,018 Lead 3,999 3,498 7,394 7,345 Zinc 10,852 11,841 23,123 25,225 Less: Treatment and refining charges (3,608) (1,261) (7,018) (3,095) Total concentrate sales, net 26,146 30,915 48,842 60,314 Realized/unrealized embedded derivative, net (472) (2,303) 1,365 (1,732) Total sales, net $ 29,374 $ 30,768 $ 55,952 $ 62,919 |
Gold and Silver Rounds_Bullion
Gold and Silver Rounds/Bullion (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Gold and Silver Rounds/Bullion | |
Schedule of Company's Holdings | 2019 2018 Ounces Per Ounce Amount Ounces Per Ounce Amount (in thousands) (in thousands) Gold 1,888 $ 1,409 $ 2,660 1,888 $ 1,279 $ 2,415 Silver 79,738 $ 15.22 1,214 79,864 $ 15.30 1,222 Total holdings $ 3,874 $ 3,637 |
Inventories, net (Tables)
Inventories, net (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Inventories, net | |
Summary of Inventories | 2019 2018 (in thousands) Stockpiles - underground mine $ 1,934 $ 2,365 Stockpiles - open pit mine 2,785 414 Leach pad 8,724 376 Concentrates 2,539 1,231 Doré 2,081 1,289 Subtotal - product inventories 18,063 5,675 Materials and supplies (1) 8,468 8,667 Total $ 26,531 $ 14,342 Net of reserve for obsolescence of $857 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Prepaid Expenses And Other Current Assets | |
Schedule of prepaid and other assets | 2019 2018 (in thousands) Advances to suppliers $ 188 $ 289 Prepaid insurance 1,529 1,179 Vendor deposits 188 236 IVA taxes receivable, net 1,098 538 Prepaid royalties 410 295 Other current assets 373 208 Total $ 3,786 $ 2,745 |
Property, Plant and Mine Deve_2
Property, Plant and Mine Development, net (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Mine Development, net | |
Schedule of property, plant and mine development | 2019 2018 (in thousands) Asset retirement costs $ 1,878 $ 1,240 Construction-in-progress (1) 22,028 34,335 Furniture and office equipment 1,976 1,861 Leach pad and ponds 5,621 - Land 242 242 Light vehicles and other mobile equipment 2,569 2,508 Machinery and equipment 32,379 27,485 Mill facilities and infrastructure 19,252 11,712 Mineral interests and mineral rights 18,195 17,958 Mine development 84,737 69,487 Software and licenses 1,659 1,659 Subtotal (2) (3) 190,536 168,487 Accumulated depreciation and amortization (70,382) (57,245) Total $ 120,154 $ 111,242 (1) Nevada construction-in-progress costs of $10.1 million and $21.6 million at June 30, 2019 and December 31, 2018, respectively. Mexico construction-in-progress of $11.9 million and $12.7 million at June 30, 2019 and December 31, 2018, respectively. (2) Includes $1.8 million and $1.6 million of assets recorded under finance leases at June 30, 2019 and December 31, 2018, respectively. Please see Note 13 for additional information. (3) Includes accrued capital expenditures of $3.1 million and $4.3 million at June 30, 2019 and December 31, 2018, respectively. |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accrued Expenses and Other Current Liabilities | |
Schedule of Accrued Expenses and Other Current Liabilities | 2019 2018 (in thousands) Accrued insurance $ 751 $ 364 Accrued royalty payments 1,981 1,432 Dividends payable 107 98 Other payables 70 136 Total $ 2,909 $ 2,030 |
Reclamation and Remediation (Ta
Reclamation and Remediation (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Reclamation And Remediation | |
Changes in Reclamation and Remediation | 2019 2018 (in thousands) Reclamation liabilities – balance at beginning of period $ 2,009 $ 2,005 Changes in estimate - - Foreign currency exchange loss 53 4 Reclamation liabilities – balance at end of period 2,062 2,009 Asset retirement obligation – balance at beginning of period 1,289 941 Changes in estimate 638 271 Accretion expense 50 78 Foreign currency exchange loss 16 (1) Asset retirement obligation – balance at end of period 1,993 1,289 Total period end balance $ 4,055 $ 3,298 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases | |
Schedule of lease cost | Three months ended June 30, Six months ended June 30, Lease Cost Type Condensed Consolidated Statements of Operation Location 2019 2019 (in thousands) Operating lease cost General and administrative expenses $ 21 $ 41 Operating lease cost Production costs 19 38 Related party lease cost General and administrative expenses 10 21 Short term lease cost Production costs 113 304 |
Schedule of future minimum operating lease payments - ASC 842 | Year Ending December 31: 2019 $ 4,401 2020 6,841 2021 151 2022 13 Thereafter - Total lease payments 11,406 Less imputed interest (357) Present value of minimum payments 11,049 Less: current portion (8,207) Present value of minimum payments $ 2,842 |
Schedule of future minimum operating lease payments - ASC 840 | Year Ending December 31: 2019 $ 16,259 2020 14,839 2021 72 2022 - Thereafter - Total lease payments $ 31,170 |
Schedule of minimum finance lease payments - ASC 842 | Scheduled minimum annual payments as of June 30, 2019 are as follows (in thousands) : Year Ending December 31: 2019 $ 243 2020 482 2021 418 2022 13 Thereafter 16 Total minimum obligations 1,172 Less: interest portion (77) Present value of minimum payments 1,095 Less: current portion (434) Present value of minimum payments $ 661 |
Schedule of minimum finance lease payments - ASC 840 | Scheduled minimum annual payments as of December 31, 2018 were as follows (in thousands) : Year Ending December 31: 2019 $ 470 2020 470 2021 406 2022 - Thereafter - Total minimum obligations 1,346 Less: interest portion (103) Present value of minimum payments 1,243 Less: current portion (412) Present value of minimum payments $ 831 |
Schedule of supplemental cash flow information | Three months ended June 30, Six months ended June 30, 2019 2019 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 834 $ 1,632 Operating cash flows from finance leases 15 32 Investing cash flows from operating lease 942 1,788 Financing cash flows from finance leases 111 204 |
Embedded Derivatives (Tables)
Embedded Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Embedded Derivatives | |
Summary of unsettled sales contracts | Gold Silver Copper Lead Zinc (ounces) (ounces) (tonnes) (tonnes) (tonnes) Under contract 6,301 434,015 583 2,271 4,168 Average forward price (per ounce or tonne) $ 1,320 $ 14.93 $ 6,166 $ 1,900 $ 2,773 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Stock-Based Compensation | |
Stock-based compensation expense | Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 (in thousands) (in thousands) Stock options $ 756 $ 181 $ 967 $ 355 Restricted stock units 122 68 247 130 Total $ 878 $ 249 $ 1,214 $ 485 |
Schedule Of Stock-Based Compensation Expense Allocated Between Production And General And Administrative Expense | Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 (in thousands) (in thousands) Production costs $ (23) $ 20 $ 6 $ 12 General and administrative expenses 880 201 1,197 424 Exploration expense 21 28 11 49 Total $ 878 $ 249 $ 1,214 $ 485 |
Net Income per Common Share (Ta
Net Income per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Net Income per Common Share | |
Net Income Per Share | Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 Net income (in thousands) $ 1,798 $ 3,754 $ 2,680 $ 9,211 Basic weighted average shares of common stock outstanding 62,778,445 57,315,472 61,729,871 57,218,389 Dilutive effect of share-based awards 288,171 998,651 349,988 934,961 Diluted weighted average common shares outstanding 63,066,616 58,314,123 62,079,859 58,153,350 Net income per share: Basic $ 0.03 $ 0.07 $ 0.04 $ 0.16 Diluted $ 0.03 $ 0.06 $ 0.04 $ 0.16 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Measurement | |
Assets measured at fair value by level within fair value hierarchy | 2019 2018 Input Hierarchy Level (in thousands) Cash and cash equivalents: Bank deposits $ 7,939 $ 7,762 Level 1 Gold and silver rounds/bullion 3,874 3,637 Level 1 Accounts receivable: Receivables from provisional concentrate sales 5,630 1,744 Level 2 Total $ 17,443 $ 13,143 |
Gains and Losses Related to Changes in Fair Value | Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 Statement of Operations Classification (in thousands) Realized/unrealized derivative gain (loss), net $ (472) $ (2,303) $ 1,365 $ (1,732) Sales, net Realized/unrealized gold and silver rounds/bullion gain (loss), net $ 224 $ (160) $ 239 $ (144) Other expense, net |
Supplementary Cash Flow Infor_2
Supplementary Cash Flow Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Supplementary Cash Flow Information | |
Schedule of Supplementary Cash Flow Information | 2019 2018 (in thousands) Unrealized (gain) on gold and silver rounds/bullion $ (243) $ 141 Unrealized foreign currency exchange (gain) (113) 74 Other 63 149 Total other operating adjustments $ (293) $ 364 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting | |
Schedule of financial information relating to the Company segments | Mexico Nevada Corporate and Other Consolidated Three months ended June 30, 2019 Revenue $ 27,834 $ 1,540 $ - $ 29,374 Exploration expense 527 65 39 631 Net income (loss) 3,963 445 (2,610) 1,798 Capital expenditures 4,653 4,714 - 9,367 Mexico Nevada Corporate and Other Consolidated Three months ended June 30, 2018 Revenue $ 30,768 $ - $ - $ 30,768 Exploration expense 490 726 35 1,251 Net income (loss) 7,036 (791) (2,491) 3,754 Capital expenditures 5,832 3,055 - 8,887 Mexico Nevada Corporate and Other Consolidated Six months ended June 30, 2019 Revenue $ 54,412 $ 1,540 $ - $ 55,952 Exploration expense 1,595 448 38 2,081 Net income (loss) 7,359 26 (4,705) 2,680 Capital expenditures (1) 9,335 11,913 - 21,248 Mexico Nevada Corporate and Other Consolidated Six months ended June 30, 2018 Revenue $ 62,919 $ - $ - $ 62,919 Exploration expense 986 1,377 73 2,436 Net income (loss) 15,624 (1,499) (4,914) 9,211 Capital expenditures (2) 11,704 4,322 - 16,026 (1) Includes a decrease in accrued capital expenditures of $1,214 and non-cash additions of $1,024; consolidated capital expenditures on a cash basis were $21,438. (2) Includes an increase in accrued capital expenditures of $918; consolidated capital expenditures on a cash basis were $15,108 . |
Schedule of asset balances, excluding investments and intercompany | 2019 2018 (in thousands) Mexico $ 97,821 $ 91,590 Nevada 79,013 46,677 Corporate and Other 14,893 12,064 Consolidated $ 191,727 $ 150,331 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Realized/unrealized embedded derivative (loss)/gain, net | $ (472) | $ (2,303) | $ 1,365 | $ (1,732) |
Total sales, net | 29,374 | 30,768 | 55,952 | 62,919 |
Dore | ||||
Disaggregation of Revenue [Line Items] | ||||
Less: Treatment and refining charges | (61) | (38) | (99) | (63) |
Total sales, net | 3,700 | 2,156 | 5,745 | 4,337 |
Gold Dore | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales, net | 3,110 | 1,722 | 4,793 | 3,631 |
Silver Dore | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales, net | 651 | 472 | 1,051 | 769 |
Concentrate | ||||
Disaggregation of Revenue [Line Items] | ||||
Less: Treatment and refining charges | (3,608) | (1,261) | (7,018) | (3,095) |
Total sales, net | 26,146 | 30,915 | 48,842 | 60,314 |
Gold Concentrate | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales, net | 6,740 | 5,396 | 11,305 | 10,937 |
Silver Concentrate | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales, net | 5,542 | 8,803 | 9,303 | 14,884 |
Copper Concentrate | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales, net | 2,621 | 2,638 | 4,735 | 5,018 |
Lead Concentrate | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales, net | 3,999 | 3,498 | 7,394 | 7,345 |
Zinc Concentrate | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales, net | $ 10,852 | $ 11,841 | $ 23,123 | $ 25,225 |
Gold and Silver Rounds_Bullio_2
Gold and Silver Rounds/Bullion - Bullion Holdings (Details) $ in Thousands | Jun. 30, 2019USD ($)oz$ / oz | Dec. 31, 2018USD ($)oz$ / oz |
Schedule of Investments [Line Items] | ||
Total carrying value | $ 3,874 | $ 3,637 |
Gold | ||
Schedule of Investments [Line Items] | ||
Ounces | oz | 1,888 | 1,888 |
Carrying value per ounce | $ / oz | 1,409 | 1,279 |
Total carrying value | $ 2,660 | $ 2,415 |
Silver | ||
Schedule of Investments [Line Items] | ||
Ounces | oz | 79,738 | 79,864 |
Carrying value per ounce | $ / oz | 15.22 | 15.30 |
Total carrying value | $ 1,214 | $ 1,222 |
Inventories, net (Details)
Inventories, net (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Inventories, net | ||
Stockpiles - underground mine | $ 1,934 | $ 2,365 |
Stockpiles - open pit mine | 2,785 | 414 |
Leach pad | 8,724 | 376 |
Concentrates | 2,539 | 1,231 |
Dore | 2,081 | 1,289 |
Subtotal - product inventory | 18,063 | 5,675 |
Materials and supplies | 8,468 | 8,667 |
Total | 26,531 | $ 14,342 |
Inventory reserve | 857 | |
Low-grade ore stockpile inventory | $ 2,800 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Taxes | ||||
Income tax (benefit) expense | $ 1,461,000 | $ 1,781,000 | $ 2,532,000 | $ 5,427,000 |
Effective tax rate | 21.00% | |||
MITL corporate income tax rate | 37.50% | 37.50% | ||
MITL corporate income tax rate excluding mining tax | 30.00% | |||
Mining tax rate | 7.50% | |||
Withholding tax on dividends | 10.00% | |||
Dividend withholding tax between countries | 5.00% | |||
Liability for uncertain tax positions | $ 0 | $ 0 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Prepaid Expenses And Other Current Assets | ||
Advances to suppliers | $ 188 | $ 289 |
Prepaid insurance | 1,529 | 1,179 |
Vendor deposits | 188 | 236 |
IVA taxes receivable, net | 1,098 | 538 |
Prepaid royalties | 410 | 295 |
Other current assets | 373 | 208 |
Total | $ 3,786 | $ 2,745 |
Property, Plant and Mine Deve_3
Property, Plant and Mine Development, net - Summary of Property, Equipment and Mine Development (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Property, equipment and mine development - net | ||
Property and equipment, gross | $ 190,536 | $ 168,487 |
Accumulated depreciation and amortization | (70,382) | (57,245) |
Total property, equipment and mine development - net | 120,154 | 111,242 |
Accrued capital expenditures | 3,100 | 4,300 |
Asset retirement costs | ||
Property, equipment and mine development - net | ||
Property and equipment, gross | 1,878 | 1,240 |
Construction-in-progress | ||
Property, equipment and mine development - net | ||
Property and equipment, gross | 22,028 | 34,335 |
Furniture and office equipment | ||
Property, equipment and mine development - net | ||
Property and equipment, gross | 1,976 | 1,861 |
Leach Pad and Ponds | ||
Property, equipment and mine development - net | ||
Property and equipment, gross | 5,621 | |
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 | 2,569 | 2,508 |
Machinery and equipment | ||
Property, equipment and mine development - net | ||
Property and equipment, gross | 32,379 | 27,485 |
Mill facilities and infrastructure | ||
Property, equipment and mine development - net | ||
Property and equipment, gross | 19,252 | 11,712 |
Mineral Interests And Mineral Rights | ||
Property, equipment and mine development - net | ||
Property and equipment, gross | 18,195 | 17,958 |
Mine development | ||
Property, equipment and mine development - net | ||
Property and equipment, gross | 84,737 | 69,487 |
Software and licenses | ||
Property, equipment and mine development - net | ||
Property and equipment, gross | 1,659 | 1,659 |
Asset Value, Finance Lease | ||
Property, equipment and mine development - net | ||
Property and equipment, gross | 1,800 | 1,600 |
Mexico | ||
Property, equipment and mine development - net | ||
Asset and development costs | 11,900 | 12,700 |
Nevada | ||
Property, equipment and mine development - net | ||
Asset and development costs | $ 10,100 | $ 21,600 |
Property, Plant and Mine Deve_4
Property, Plant and Mine Development, net - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Property, Plant and Mine Development, net | ||||
Depreciation and amortization expense | $ 4,300 | $ 3,700 | $ 7,921 | $ 7,386 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Accrued Expenses and Other Current Liabilities | ||
Accrued insurance | $ 751 | $ 364 |
Accrued royalty payments | 1,981 | 1,432 |
Dividends payable | 107 | 98 |
Other payables | 70 | 136 |
Total | $ 2,909 | $ 2,030 |
Reclamation and Remediation (De
Reclamation and Remediation (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Asset Retirement Obligation, Roll Forward Analysis | ||
Reclamation liabilities – balance at beginning of period | $ 2,009 | $ 2,005 |
Foreign currency exchange loss | 53 | 4 |
Reclamation liabilities – balance at end of period | 2,062 | 2,009 |
Asset retirement obligation – balance at beginning of period | 1,289 | 941 |
Changes in estimate | 638 | 271 |
Accretion expense | 50 | 78 |
Foreign currency exchange loss | 16 | (1) |
Asset retirement obligation – balance at end of period | 1,993 | 1,289 |
Total period end balance | $ 4,055 | $ 3,298 |
Reclamation and remediation discount rate | 8.00% | 8.00% |
Aguila Project | ||
Asset Retirement Obligation, Roll Forward Analysis | ||
Asset retirement obligation – balance at beginning of period | $ 500 | |
Asset retirement obligation – balance at end of period | 600 | $ 500 |
Isabella Pearl Project | ||
Asset Retirement Obligation, Roll Forward Analysis | ||
Asset retirement obligation – balance at beginning of period | 800 | |
Asset retirement obligation – balance at end of period | $ 1,400 | $ 800 |
Loans Payable (Details)
Loans Payable (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Periodic payment | $ 80 | |
Outstanding loan | 2,100 | $ 2,100 |
Minimum repayments in 2019 | 400 | |
2020 | 900 | |
2021 | 700 | |
2022 | $ 100 | |
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% |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) $ in Millions | Jun. 30, 2019USD ($) |
Commitments and Contingencies | |
Equipment purchase commitments | $ 2 |
2019 | 4.7 |
2020 | $ 8.7 |
Leases - Operating Leases (Deta
Leases - Operating Leases (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Lessee, Lease, Description [Line Items] | |
Right-of-use assets | $ 11,043 |
Operating lease liabilities | 11,049 |
ASU 2016-02 | Restatement Adjustment | |
Lessee, Lease, Description [Line Items] | |
Right-of-use assets | 14,200 |
Operating lease liabilities | $ 14,200 |
Leases - Quantitative informati
Leases - Quantitative information (Details) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Option to renew | true | |
Weighted average remaining lease term for operating leases | 1 year 4 months 13 days | 1 year 4 months 13 days |
Weighted average discount rate used to measure operating lease liabilities | 4.48% | 4.48% |
Operating lease, existence of material residual value guarantees | false | |
Inventory | ||
Lessee, Lease, Description [Line Items] | ||
Capitalized variable lease costs | $ 0.8 | $ 1.5 |
Property, plant and mine development | ||
Lessee, Lease, Description [Line Items] | ||
Capitalized variable lease costs | $ 0.9 | $ 1.8 |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Renewal term | 2 years | 2 years |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Renewal term | 1 year | 1 year |
Leases - Other Leases (Details)
Leases - Other Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
General and administrative expenses | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease cost | $ 21 | $ 41 |
Related party lease cost | 10 | 21 |
Production costs | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease cost | 19 | 38 |
Short-term lease cost | $ 113 | $ 304 |
Leases - Maturities of operatin
Leases - Maturities of operating lease liabilities (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Leases | |
2019 | $ 4,401 |
2020 | 6,841 |
2021 | 151 |
2022 | 13 |
Total lease payments | 11,406 |
Less imputed interest | (357) |
Total | 11,049 |
Less: current portion | (8,207) |
Present value of minimum payments | $ 2,842 |
Leases - Future minimum operati
Leases - Future minimum operating lease payment (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2019 | $ 16,259 |
2020 | 14,839 |
2021 | 72 |
Total lease payments | $ 31,170 |
Leases - Quantitative informa_2
Leases - Quantitative information Finance lease (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |
Weighted average discount rate for finance leases | 5.80% |
Monthly principal, interest and sales tax payments | $ 40 |
Finance Lease, Weighted Average Remaining Lease Term | 2 years 6 months |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lessee, Finance Lease, Discount Rate | 1.58% |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lessee, Finance Lease, Discount Rate | 5.95% |
Leases - Finance Leases Minimum
Leases - Finance Leases Minimum Annual Payments (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Finance Lease Liabilities, Payments, Due [Abstract] | ||
2019 | $ 243 | |
2020 | 482 | |
2021 | 418 | |
2022 | 13 | |
Thereafter | 16 | |
Total minimum obligations | 1,172 | |
Less: interest portion | (77) | |
Present value of minimum payments | 1,095 | |
Less: current portion | (434) | $ (412) |
Present value of minimum payments | $ 661 | $ 831 |
Leases - Scheduled minimum annu
Leases - Scheduled minimum annual payments (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Capital Leases, Future Minimum Payments, Present Value of Net Minimum Payments, Fiscal Year Maturity [Abstract] | |
2019 | $ 470 |
2020 | 470 |
2021 | 406 |
Total minimum obligations | 1,346 |
Less: interest portion | (103) |
Present value of net minimum payments | 1,243 |
Less: current portion | (412) |
Present value of minimum payments | $ 831 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Leases | ||
Operating cash flows from operating leases | $ 834 | $ 1,632 |
Operating cash flows from finance leases | 15 | 32 |
Investing cash flows from operating lease | 942 | 1,788 |
Financing cash flows from finance leases | $ 111 | $ 204 |
Embedded Derivatives (Details)
Embedded Derivatives (Details) | 6 Months Ended |
Jun. 30, 2019$ / oz$ / tozt | |
Gold | |
Embedded Derivative [Line Items] | |
Under contract | oz | 6,301 |
Average forward price | $ / oz | 1,320 |
Silver | |
Embedded Derivative [Line Items] | |
Under contract | oz | 434,015 |
Average forward price | $ / oz | 14.93 |
Copper | |
Embedded Derivative [Line Items] | |
Under contract | t | 583 |
Average forward price | $ / t | 6,166 |
Lead | |
Embedded Derivative [Line Items] | |
Under contract | t | 2,271 |
Average forward price | $ / t | 1,900 |
Zinc | |
Embedded Derivative [Line Items] | |
Under contract | t | 4,168 |
Average forward price | $ / t | 2,773 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Equity Incentive plan shares for issuance authorized | 5,000,000 | 5,000,000 | |||
Number of shares purchased | 361,259 | 274,750 | 1,361,259 | ||
Weighted Average Exercise Price, Exercised | $ 2.44 | $ 3.95 | $ 3.14 | ||
Number of shares exercised on a net exercise basis | 250,000 | 945,000 | |||
Number of shares exercised and delivered | 44,698 | 244,345 | |||
Number of shares exercised for cash | 24,750 | 416,259 | |||
Number of stock options exercised | 0 | ||||
Accrued expenses and other current liabilities | $ 2,909 | $ 2,909 | $ 2,030 | ||
STIP | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Accrued expenses and other current liabilities | $ 0 | 0 | |||
Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total intrinsic value | 100 | $ 100 | |||
Fair value | $ 100 | ||||
Vested (in shares) | 14,804 | 14,964 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-based compensation expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Stock-Based Compensation | ||||
Stock options | $ 756 | $ 181 | $ 967 | $ 355 |
Restricted stock units | 122 | 68 | 247 | 130 |
Total stock-based compensation | $ 878 | $ 249 | $ 1,214 | $ 485 |
Stock-Based Compensation - Allo
Stock-Based Compensation - Allocation of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Stock-Based Compensation | ||||
Production costs | $ (23) | $ 20 | $ 6 | $ 12 |
General and administrative expenses | 880 | 201 | 1,197 | 424 |
Exploration expense | 21 | 28 | 11 | 49 |
Total stock-based compensation | $ 878 | $ 249 | $ 1,214 | $ 485 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Apr. 03, 2018 | |
Value of shares issued | $ 11,002 | $ 21,905 | |||
Period for consulting agreement | 1 year | ||||
Cash dividend rate declared, per common share | $ 0.005 | $ 0.005 | $ 0.005 | $ 0.005 | |
Shares issued as payment for third-party agreement | 25,000 | ||||
Dividends | $ 319 | $ 288 | $ 626 | $ 574 | |
ATM Agreement | |||||
Sale of shares | 3,314,742 | 5,851,872 | |||
Value of shares issued | $ 11,000 | $ 21,800 | |||
Maximum | ATM Agreement | |||||
Common stock aggregate gross sales price | $ 75,000 |
Other Expense, Net (Details)
Other Expense, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Other Expense, Net | ||||
Unrealized currency exchange loss (gain) | $ 14 | $ 1,100 | $ (113) | $ 74 |
Realized currency exchange loss (gain) | 21 | (735) | 172 | 589 |
Unrealized (gain) loss from gold and silver rounds/bullion, net | (226) | 159 | (243) | 141 |
Other expense (income) | 84 | (14) | 102 | (16) |
Total | $ (107) | $ 510 | $ (82) | $ 788 |
Net Income per Common Share - N
Net Income per Common Share - Narrative (Details) - $ / shares shares in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Net Income per Common Share | ||
Stock options excluded from computation of diluted weighted average share outstanding | 3.9 | 3 |
Shares excluded from weighted average shares outstanding, exercise price | $ 9.96 | $ 11.65 |
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 | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net Income per Common Share | ||||
Net income | $ 1,798 | $ 3,754 | $ 2,680 | $ 9,211 |
Basic weighted average shares of common stock outstanding | 62,778,445 | 57,315,472 | 61,729,871 | 57,218,389 |
Dilutive effect of share-based awards | 288,171 | 998,651 | 349,988 | 934,961 |
Diluted weighted average common shares outstanding | 63,066,616 | 58,314,123 | 62,079,859 | 58,153,350 |
Net income per common share: | ||||
Basic | $ 0.03 | $ 0.07 | $ 0.04 | $ 0.16 |
Diluted | $ 0.03 | $ 0.06 | $ 0.04 | $ 0.16 |
Fair Value Measurement (Details
Fair Value Measurement (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Total | $ 17,443 | $ 13,143 |
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 | 7,939 | 7,762 |
Gold and silver rounds/bullion | 3,874 | 3,637 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Receivables from provisional concentrate sales | $ 5,630 | $ 1,744 |
Fair Value Measurement - Statem
Fair Value Measurement - Statement Of Income Classification (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Fair Value Statement Of Income Classification [Line Items] | |||||
Derivative gain (loss) | $ (400) | $ (100) | |||
Sales | |||||
Fair Value Statement Of Income Classification [Line Items] | |||||
Derivative gain (loss) | $ (472) | $ (2,303) | 1,365 | $ (1,732) | |
Other Operating Income (Expense) | |||||
Fair Value Statement Of Income Classification [Line Items] | |||||
Gold and silver rounds/bullion gain | $ 224 | $ (160) | $ 239 | $ (144) |
Fair Value Measurement - Realiz
Fair Value Measurement - Realized Unrealized Derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Derivatives, Fair Value [Line Items] | ||||
Realized gain (loss) | $ 803 | $ 1,614 | $ 1,000 | |
Unrealized gain (loss) | (1,275) | $ (2,303) | (249) | (2,732) |
Total realized/ unrealized derivatives, net | (472) | (2,303) | 1,365 | (1,732) |
Gold | ||||
Derivatives, Fair Value [Line Items] | ||||
Realized gain (loss) | 48 | 172 | 14 | |
Unrealized gain (loss) | (13) | (38) | (36) | 62 |
Total realized/ unrealized derivatives, net | 35 | (38) | 136 | 76 |
Silver | ||||
Derivatives, Fair Value [Line Items] | ||||
Realized gain (loss) | 36 | 96 | (53) | |
Unrealized gain (loss) | (58) | 13 | (60) | 162 |
Total realized/ unrealized derivatives, net | (22) | 13 | 36 | 109 |
Copper | ||||
Derivatives, Fair Value [Line Items] | ||||
Realized gain (loss) | 54 | 68 | 53 | |
Unrealized gain (loss) | (106) | (103) | 47 | (203) |
Total realized/ unrealized derivatives, net | (52) | (103) | 115 | (150) |
Lead | ||||
Derivatives, Fair Value [Line Items] | ||||
Realized gain (loss) | (34) | (19) | (5) | |
Unrealized gain (loss) | (74) | (138) | (77) | (161) |
Total realized/ unrealized derivatives, net | (108) | (138) | (96) | (166) |
Zinc | ||||
Derivatives, Fair Value [Line Items] | ||||
Realized gain (loss) | 699 | 1,297 | 991 | |
Unrealized gain (loss) | (1,024) | (2,037) | (123) | (2,592) |
Total realized/ unrealized derivatives, net | $ (325) | $ (2,037) | $ 1,174 | $ (1,601) |
Supplementary Cash Flow Infor_3
Supplementary Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Supplementary Cash Flow Information | ||||
Unrealized (gain) on gold and silver rounds/bullion | $ (243) | $ 141 | ||
Unrealized currency exchange loss (gain) | $ 14 | $ 1,100 | (113) | 74 |
Other | 63 | 149 | ||
Total other operating adjustments | $ (293) | $ 364 |
Segment Reporting (Details)
Segment Reporting (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)segment | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Number of reportable segments | segment | 2 | ||||
Total sales, net | $ 29,374 | $ 30,768 | $ 55,952 | $ 62,919 | |
Exploration expenses | 22,883 | 21,247 | 44,022 | 40,478 | |
Net income (loss) | 1,798 | 3,754 | 2,680 | 9,211 | |
Capital expenditures | 9,367 | 8,887 | 21,248 | 16,026 | |
Accrued capital expenditures | (1,214) | 918 | |||
Non - cash additions | 1,024 | ||||
Capital expenditures on a cash basis | 21,438 | 15,108 | |||
Assets | 191,727 | 191,727 | $ 150,331 | ||
Mexico | |||||
Total sales, net | 27,834 | 30,768 | 54,412 | 62,919 | |
Net income (loss) | 3,963 | 7,036 | 7,359 | 15,624 | |
Capital expenditures | 4,653 | 5,832 | 9,335 | 11,704 | |
Assets | 97,821 | 97,821 | 91,590 | ||
Nevada | |||||
Total sales, net | 1,540 | 1,540 | |||
Net income (loss) | 445 | (791) | 26 | (1,499) | |
Capital expenditures | 4,714 | 3,055 | 11,913 | 4,322 | |
Assets | 79,013 | 79,013 | 46,677 | ||
Corporate and Other | |||||
Net income (loss) | (2,610) | (2,491) | (4,705) | (4,914) | |
Assets | 14,893 | 14,893 | $ 12,064 | ||
Exploration expenses | |||||
Exploration expenses | 631 | 1,251 | 2,081 | 2,436 | |
Exploration expenses | Mexico | |||||
Exploration expenses | 527 | 490 | 1,595 | 986 | |
Exploration expenses | Nevada | |||||
Exploration expenses | 65 | 726 | 448 | 1,377 | |
Exploration expenses | Corporate and Other | |||||
Exploration expenses | $ 39 | $ 35 | $ 38 | $ 73 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event - ATM Agreement $ in Millions | Aug. 05, 2019USD ($)shares |
Subsequent Events | |
Sale of shares | shares | 773,716 |
Net proceeds from sale of shares | $ | $ 2.6 |