Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 27, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-34857 | |
Entity Registrant Name | Gold Resource Corporation | |
Entity Incorporation, State or Country Code | CO | |
Entity Tax Identification Number | 84-1473173 | |
Entity Address, Address Line One | 2000 South Colorado Blvd, | |
Entity Address, Address Line Two | Tower One, | |
Entity Address, Address Line Three | Suite 10200, | |
Entity Address, City or Town | Denver, | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80222 | |
City Area Code | 303 | |
Local Phone Number | 320-7708 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | GORO | |
Security Exchange Name | NYSEAMER | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 74,439,205 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001160791 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 27,230 | $ 25,405 |
Gold and silver rounds/bullion | 593 | 671 |
Accounts receivable, net | 3,533 | 4,226 |
Inventories, net | 11,584 | 9,995 |
Prepaid expenses and other current assets | 1,552 | 2,576 |
Total current assets | 44,492 | 42,873 |
Property, plant and mine development, net | 62,965 | 62,511 |
Deferred tax assets, net | 347 | 309 |
Other non-current assets | 44 | 41 |
Total assets | 107,848 | 105,734 |
Current liabilities: | ||
Accounts payable | 7,725 | 8,782 |
Income taxes payable, net | 1,368 | 73 |
Mining royalty taxes payable, net | 853 | 955 |
Accrued expenses and other current liabilities | 2,087 | 2,275 |
Total current liabilities | 12,033 | 12,085 |
Reclamation and remediation liabilities | 3,029 | 3,098 |
Other non-current liabilities | 364 | 13 |
Total liabilities | 15,426 | 15,196 |
Shareholders' equity: | ||
Common stock - $0.001 par value, 100,000,000 shares authorized: 74,439,206 and 74,376,958 shares outstanding at March 31, 2021 and December 31, 2020, respectively | 75 | 75 |
Additional paid-in capital | 84,966 | 84,865 |
Retained earnings | 14,436 | 12,653 |
Treasury stock at cost, 336,398 shares | (5,884) | (5,884) |
Accumulated other comprehensive loss | (1,171) | (1,171) |
Total shareholders' equity | 92,422 | 90,538 |
Total liabilities and shareholders' equity | $ 107,848 | $ 105,734 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
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 | 74,439,206 | 74,376,958 |
Treasury stock, shares | 336,398 | 336,398 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Sales, net | $ 27,268 | $ 22,149 |
Depreciation and amortization | 3,399 | 6,013 |
Reclamation and remediation | 51 | 49 |
Total mine cost of sales | 18,693 | 22,021 |
Mine gross profit | 8,575 | 128 |
Costs and expenses: | ||
General and administrative expenses | 1,581 | 1,805 |
Restructuring expenses | 496 | |
Stock-based compensation | 484 | 470 |
Other (income) expense, net | (314) | 1,465 |
Total costs and expenses | 3,454 | 4,718 |
Income (loss) before income taxes | 5,121 | (4,590) |
Provision for income taxes | 2,594 | (1,372) |
Net income (loss) from continuing operations | 2,527 | (3,218) |
Net income (loss) from discontinued operations, net of income taxes | 97 | |
Net income (loss) | $ 2,527 | $ (3,121) |
Net income per common share: | ||
Basic and diluted net income (loss) per common share from continuing operations | $ 0.03 | $ (0.05) |
Weighted average shares outstanding: | ||
Basic | 74,405,031 | 66,022,202 |
Diluted | 74,761,882 | 66,022,202 |
Production costs | ||
Total mine cost of sales | $ 15,243 | $ 15,959 |
Exploration expenses | ||
Costs and expenses: | ||
Total costs and expenses | $ 1,207 | $ 978 |
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 Loss | Total |
Balance at Dec. 31, 2019 | $ 148,171 | $ 16,876 | $ (5,884) | $ (1,171) | $ 158,058 | |
Balance (in shares) at Dec. 31, 2019 | 66,027,925 | |||||
Balance at Dec. 31, 2019 | $ 66 | |||||
Stock-based compensation | 470 | $ 470 | ||||
Net stock options exercised (in shares) | 0 | |||||
Dividends declared | (665) | $ (665) | ||||
Issuance of stock, net of issuance costs | $ 4 | 10,346 | 10,350 | |||
Issuance of stock, net of issuance costs (in shares) | 3,850,000 | |||||
Net income loss | (3,121) | (3,121) | ||||
Balance at Mar. 31, 2020 | 158,987 | 13,090 | (5,884) | (1,171) | 165,092 | |
Balance (in shares) at Mar. 31, 2020 | 69,877,925 | |||||
Balance at Mar. 31, 2020 | $ 70 | |||||
Balance at Dec. 31, 2020 | 84,865 | 12,653 | (5,884) | (1,171) | 90,538 | |
Balance (in shares) at Dec. 31, 2020 | 74,713,356 | |||||
Balance at Dec. 31, 2020 | $ 75 | 75 | ||||
Stock-based compensation | 141 | 141 | ||||
Net stock options exercised | 165 | $ 165 | ||||
Net stock options exercised (in shares) | 125,000 | 125,000 | ||||
Common stock issued for vested restricted stock units (in shares) | 2,614 | |||||
Dividends declared | (744) | $ (744) | ||||
Surrender of stock for taxes due on vesting | (205) | (205) | ||||
Surrender of stock for taxes due on vesting (in shares) | (65,366) | |||||
Net income loss | 2,527 | 2,527 | ||||
Balance at Mar. 31, 2021 | $ 84,966 | $ 14,436 | $ (5,884) | $ (1,171) | 92,422 | |
Balance (in shares) at Mar. 31, 2021 | 74,775,604 | |||||
Balance at Mar. 31, 2021 | $ 75 | $ 75 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 2,527 | $ (3,121) |
Net income from discontinuing operations | 97 | |
Net income (loss) from continuing operations | 2,527 | (3,218) |
Adjustments to reconcile net income to net cash from operating activities: | ||
Deferred income taxes | 43 | (3,885) |
Depreciation and amortization | 3,437 | 6,113 |
Stock-based compensation | 484 | 470 |
Other operating adjustments | 340 | 1,792 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 693 | 4,488 |
Inventories | (1,063) | (1,709) |
Prepaid expenses and other current assets | 592 | 92 |
Other non-current assets | (4) | (10) |
Accounts payable and other accrued liabilities | (1,141) | 228 |
Mining royalty and income taxes payable, net | 923 | 1,844 |
Net cash provided by operating activities from continuing operations | 6,831 | 6,205 |
Cash flows from investing activities: | ||
Capital expenditures | (4,320) | (3,482) |
Proceeds from the sale of gold and silver bullion/rounds | 3 | 1 |
Net cash used in investing activities from continuing operations | (4,317) | (3,481) |
Cash flows from financing activities: | ||
Proceeds from the exercise of stock options | 165 | |
Proceeds from issuance of stock | 10,349 | |
Dividends paid | (744) | (657) |
Cash related to the Spin-off | 292 | |
Net cash (used in) provided by financing activities from continuing operations | (579) | 9,984 |
Effect of exchange rate changes on cash and cash equivalents from continuing operations | (110) | (127) |
Cash flows from discontinued operations: | ||
Net cash used in operating activities | (1,229) | |
Net cash used in investing activities | (3,447) | |
Net increase in cash and cash equivalents | 1,825 | 7,905 |
Cash and cash equivalents at beginning of period | 25,405 | 10,210 |
Cash and cash equivalents at end of period | $ 27,230 | $ 18,115 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Supplemental Cash Flow Information Continuing Operations | ||
Interest expense paid | $ 18 | |
Income and mining taxes paid | $ 1,328 | 3,743 |
Non-cash investing activities: | ||
Change in capital expenditures in accounts payable | (259) | 624 |
Change in estimate for asset retirement costs | $ 7 | $ 443 |
Basis of Preparation of Financi
Basis of Preparation of Financial Statements | 3 Months Ended |
Mar. 31, 2021 | |
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, 2020 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. These reclassifications were mostly related to Discontinued Operations and separate presentation of stock-based compensation. |
Recently Adopted Accounting Sta
Recently Adopted Accounting Standards | 3 Months Ended |
Mar. 31, 2021 | |
Recently Adopted Accounting Standards | |
Recently Adopted Accounting Standards | 2. Recently Adopted Accounting Standards Recent accounting pronouncements issued have been evaluated and do not presently impact our financial statements and supplemental data. |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Mar. 31, 2021 | |
Discontinued Operations | |
Discontinued Operations | 3. Discontinued Operations On December 31, 2020, the Company completed its spin-off of its wholly-owned subsidiary Fortitude Gold Corporation and its subsidiaries (“FGC” or “Nevada Mining Unit”). FGC is presented as discontinued operations in the Company’s Condensed Consolidated Financial Statements. Results of discontinued operations for the three months ended March 31, 2020 are as follows ( in thousands Three months ended March 31, 2020 (Unaudited) Sales, net $ 5,857 Mine cost of sales 6,300 Mine gross loss (443) Exploration expenses 177 Other expense, net 48 Loss before income taxes (668) Income tax benefit (765) Net income from discontinued operations $ 97 Selected Statements of Cash Flows presenting depreciation and amortization, capital expenditures, sale proceeds and significant operating noncash items of FGC were as follows: Three months ended March 31, 2020 (Unaudited) Cash flows from discontinued operating activities: Net income $ 97 Adjustments to reconcile net income to net cash from operating activities: Deferred income taxes (765) Depreciation and amortization 1,422 Other operating adjustments (11) Changes in operating assets and liabilities: Accounts receivable (169) Inventories (1,786) Prepaid expenses and other current assets 82 Other non-current assets 931 Accounts payable and other accrued liabilities (1,030) Net cash used in discontinued operating activities (1,229) Cash flows from discontinued investing activities: Capital expenditures (3,447) Net cash used in discontinued investing activities (3,447) Cash flows from discontinued financing activities: Cash transferred from Gold Resource Corporation prior to Spin-off 4,508 Repayment of loans payable (216) Repayment of finance leases (107) Net cash provided by discontinued financing activities 4,185 Supplemental Cash Flow Information Discontinued Operations Non-cash investing activities: Change in capital expenditures in accounts payable $ 516 Change in estimate for asset retirement costs $ 435 Effective December 31, 2020, in connection with the Spin-Off, the Company entered into an agreement with FGC that govern the relationship of the parties following the Spin-Off. The Management Services Agreement provides that the Company and its subsidiaries will provide services to FGC to assist in the transition of FGC as a separate company including, managerial and technical supervision, advisory and consultation with respect to mining operations, exploration, environmental, safety and sustainability matters. The Company will provide certain administrative services related to information technology, accounting and financial advisory services, legal and compliance support and investor relation and shareholder communication services. The agreed upon charges for services rendered are based on market rates that align with the rates that an unaffiliated service provider would charge for similar services. The Management Services Agreement will terminate on December 31, 2021, unless cancelled upon 30 days written notice by one party to the other. Due to the successful development, by FGC, of their own corporate, administrative and technical capabilities, the Company decided to terminate the Agreement and delivered a notice of termination on April 14, 2021 and therefore termination of the Agreement will be effective on May 21, 2021. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2021 | |
Revenue | |
Revenue | 4. Revenue The Company derives its revenue from the sale of doré and concentrates. The following table presents the Company’s net sales for each period presented, disaggregated by source: Three months ended March 31, 2021 2020 (in thousands) Doré sales, net Gold $ 2,487 $ 1,769 Silver 377 676 Less: Refining charges (71) (35) Total doré sales, net 2,793 2,410 Concentrate sales Gold 6,524 6,216 Silver 6,313 5,215 Copper 3,386 2,361 Lead 2,405 3,479 Zinc 8,766 9,040 Less: Treatment and refining charges (2,884) (5,834) Total concentrate sales, net 24,510 20,477 Realized/unrealized embedded derivative, net (35) (738) Total sales, net $ 27,268 $ 22,149 |
Gold and Silver Rounds_Bullion
Gold and Silver Rounds/Bullion | 3 Months Ended |
Mar. 31, 2021 | |
Gold and Silver Rounds/Bullion | |
Gold and Silver Rounds/Bullion | 5 . Gold and Silver Rounds/Bullion The Company sponsors a dividend exchange program under which shareholders may exchange their cash dividends for minted gold and silver rounds. No purchase or sales of gold and silver occurred during the current period. At March 31, 2021 and December 31, 2020, the Company’s holdings of rounds/bullion, using quoted market prices, consisted of the following: 2021 2020 (Unaudited) Ounces Per Ounce Amount Ounces Per Ounce Amount (in thousands) (in thousands) Gold 184 $ 1,691 $ 311 189 $ 1,888 $ 357 Silver 11,750 $ 24.00 282 11,842 $ 26.49 314 Total holdings $ 593 $ 671 |
Inventories, net
Inventories, net | 3 Months Ended |
Mar. 31, 2021 | |
Inventories, net | |
Inventories, net | 6. Inventories, net At March 31, 2021 and December 31, 2020, inventories, net consisted of the following: 2021 2020 (Unaudited) (in thousands) Stockpiles - underground mine $ 461 $ 648 Stockpiles - open pit mine 17 41 Concentrates 2,834 1,919 Doré, net (1) 1,107 459 Subtotal - product inventories 4,419 3,067 Materials and supplies (2) 7,165 6,928 Total $ 11,584 $ 9,995 (1) Net of reserve of nil and $368 at March 31, 2021 and December 31, 2020, respectively. (2) Net of reserve for obsolescence of $209 as of March 31, 2021 and December 31, 2020. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Taxes | |
Income Taxes | 7. Income Taxes The Company recorded an income tax expense of $2.6 million for the three months ended March 31, 2021. In accordance with applicable accounting rules, the interim provision for taxes is calculated 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. At the federal level, the Company’s income in the U.S. is taxed at 21% and a 5% withholding tax applies to dividends received from Mexico. The U.S. tax results are combined with the Company’s income in Mexico, taxed at 37.5% (30% income tax and 7.5% mining tax), and in Canada at 26.5%, which results in a consolidated effective tax rate above statutory U.S. Federal rates. Both U.S. and Canada jurisdictions do not currently generate taxable income therefore have no impact on our consolidated effective tax rate. Mexico Mining Taxation Mining entities in Mexico are subject to two mining duties, in addition to the 30% Mexico corporate income tax: a “special” mining duty of 7.5% of taxable income as defined under Mexican tax law (also referred to as “mining royalty tax”) on extraction activities performed by concession holders. 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. 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 the Mexico statutory rate. In addition, in Q1 2021 Mexico Tax Authorities introduced new tax regulation wherein exploration expenses that were previously 100% deductible in the year incurred are now being deducted at a rate of 10% per year for 10 years, same as for Income Tax purposes. 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 unless otherwise provided per a tax treaty. 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 2021. The impact of the planned annual dividends for 2021 is reflected in the estimated annual effective tax rate. As of March 31, 2021, the Company believes that it has no liability for uncertain tax positions. The U.S. Treasury Department issued final regulations in July 2020 concerning global intangible low-taxed income, commonly referred to as GILTI tax, and introduced by the Tax Act of 2017. The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. The final tax regulations allow income to be excluded from GILTI tax that is subject to an effective tax rate higher than 90% of the U.S. tax rate (18.9%). The Company completed its assessment of the new legislation during the three months ended March 31, 2021 and determined that due to this high tax exception, that GILTI tax was not incurred in Q1 2021. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 3 Months Ended |
Mar. 31, 2021 | |
Prepaid Expenses And Other Current Assets | |
Prepaid Expenses and Other Current Assets | 8. Prepaid Expenses and Other Current Assets At March 31, 2021 and December 31, 2020, prepaid expenses and other current assets consisted of the following: 2021 2020 (Unaudited) (in thousands) Advances to suppliers $ 365 $ 374 Prepaid insurance 342 709 IVA taxes receivable, net 318 846 Other current assets 527 647 Total $ 1,552 $ 2,576 |
Property, Plant and Mine Develo
Property, Plant and Mine Development, net | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Mine Development, net | |
Property, Plant and Mine Development, net | 9. Property, Plant and Mine Development, net At March 31, 2021 and December 31, 2020, property, plant and mine development, net consisted of the following: 2021 2020 (Unaudited) (in thousands) Asset retirement costs $ 1,071 $ 1,064 Construction-in-progress (1) 9,549 7,158 Furniture and office equipment 1,877 1,839 Land 230 230 Light vehicles and other mobile equipment 2,228 2,192 Machinery and equipment 31,273 31,227 Mill facilities and infrastructure 24,407 24,407 Mine Development 85,623 83,859 Software and licenses 1,619 1,619 Subtotal (2) 157,877 153,595 Accumulated depreciation and amortization (94,912) (91,084) Total $ 62,965 $ 62,511 (1) Includes accrued capital expenditures of $0.8 million and $1.0 million at March 31, 2021 and December 31, 2020, respectively. The Company recorded depreciation and amortization expense of $3.4 and $6.1 million and for the three months ended March 31, 2021 and 2020, respectively. Depreciation is lower for the three months ending March 31, 2021 due to lower silver and base metal production. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 3 Months Ended |
Mar. 31, 2021 | |
Accrued Expenses and Other Current Liabilities | |
Accrued Expenses and Other Current Liabilities | 10. Accrued Expenses and Other Current Liabilities At March 31, 2021 and December 31, 2020, accrued expenses and other current liabilities consisted of the following: 2021 2020 (Unaudited) (in thousands) Accrued royalty payments 1,637 1,796 Dividends payable 248 247 Other payables 202 232 Total $ 2,087 $ 2,275 |
Reclamation and Remediation
Reclamation and Remediation | 3 Months Ended |
Mar. 31, 2021 | |
Reclamation and Remediation | |
Reclamation and Remediation | 11. Reclamation and Remediation The following table presents the changes in reclamation and remediation obligations for the three months ended March 31, 2021 and year ended December 31, 2020: 2021 2020 (Unaudited) (in thousands) Reclamation liabilities – balance at beginning of period $ 1,890 $ 2,003 Foreign currency exchange gain (61) (113) Reclamation liabilities – balance at end of period 1,829 1,890 Asset retirement obligation – balance at beginning of period 1,208 1,105 Changes in estimate 7 82 Accretion 24 79 Foreign currency exchange gain (39) (58) Asset retirement obligation – balance at end of period 1,200 1,208 Total period end balance $ 3,029 $ 3,098 The Company’s undiscounted reclamation liabilities of $1.8 million as of March 31, 2021 and $1.9 million as of December 31, 2020, respectively, are related to the Aguila project in Mexico. These represent reclamation liabilities that were expensed through 2013 before proven and probable reserves were established and the Company was considered to be a development stage entity; therefore, most of the costs, including asset retirement costs, were not allowed to be capitalized as part of our Property, Plant & Mine Development. The Company’s asset retirement obligations reflect the additions to the asset for reclamation and remediation costs in Property, Plant & Mine Development, post 2013 development stage status, which are discounted using a credit adjusted risk-free rate of 8%. As of March 31, 2021, and December 31, 2020, the Company’s asset retirement obligation related to the Don David Gold Mine in Mexico was $1.2 million. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies | |
Commitments and Contingencies | 12. Commitments and Contingencies Commitments As of March 31, 2021, the Company has equipment purchase commitments of approximately $0.7 million. Other Contingencies The Company has certain other contingencies resulting from litigation, claims, and other commitments that are subject to a variety of environmental and safety laws and regulations incident to the ordinary course of business. The Company currently has no basis to conclude that any or all of such contingencies will materially affect its financial position, results of operations or cash flows. However, in the future, there may be changes to these contingencies, or additional contingencies may occur, any of which might result in an accrual or a change in current accruals recorded by the Company, and there can be no assurance that their ultimate disposition will not have a material adverse effect on the Company’s financial position, results of operations or cash flows. |
Embedded Derivatives
Embedded Derivatives | 3 Months Ended |
Mar. 31, 2021 | |
Embedded Derivatives | |
Embedded Derivatives | 13. 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 forward metal prices. Please see Note 18 The following table summarizes the Company’s unsettled sales contracts as of March 31, 2021 with the quantities of metals under contract subject to final pricing occurring through April 2021: Gold Silver Copper Lead Zinc (ounces) (ounces) (tonnes) (tonnes) (tonnes) Under contract 4,531 302,534 534 1,398 4,842 Average forward price (per ounce or tonne) $ 1,806 $ 26.13 $ 8,386 $ 2,004 $ 2,759 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2021 | |
Stock-Based Compensation | |
Stock-Based Compensation | 14. Stock-Based Compensation The Gold Resource Corporation 2016 Equity 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, restricted stock units (“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. Effective January 1, 2021, the Company’s Board of Directors, on the recommendation of the Compensation Committee, implemented a program to issue Deferred Stock Units (DSUs). DSUs are a qualifying instrument under the terms of the Company’s 2016 Equity Plan and therefore do not require additional shareholder approval. The vesting and settlement terms of the DSUs are determined by the Compensation Committee at the time the DSUs are awarded. 130,000 DSUs were granted to the Board of Directors during the period ended March 31, 2021 and are redeemable in cash or shares at the earlier of 10 years or upon the eligible directors’ termination. Termination is deemed to occur on the earliest of (1) the date of voluntary resignation or retirement of the director from the Board; (2) the date of death of the director; or (3) the date of removal of the director from the Board whether by shareholder resolution, failure to achieve re-election or otherwise; and on which date the director is not a director or employee of the Company or any of its affiliates. These awards contain a cash settlement feature and are therefore classified as a liability and are marked to fair value each reporting period. The Company recorded $0.3 million of other non-current liability and expense During the three months ended March 31, 2021, a total of 2,614 RSUs vested, and shares were issued with an intrinsic value During the three months ended March 31, 2021, stock options to purchase an aggregate of 125,000 shares of the Company’s common stock were exercised at a weighted average exercise price of $1.32 per share. No stock options were exercised during the three months ended March 31, 2020. Stock-based compensation expense for stock options and RSUs and DSUs for the periods presented is as follows: Three months ended March 31, 2021 2020 (in thousands) Stock options $ 227 $ 222 Restricted stock units (86) 248 Deferred stock units 343 - Total $ 484 $ 470 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 March 31, 2021 and December 31, 2020, nil has been accrued related to the STIP |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2021 | |
Shareholders' Equity | |
Shareholders' Equity | 15. 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”), which was subsequently renewed in June 2020. The ATM Agreement will remain in full force and effect until the earlier of (i) June 3, 2023 or (ii) the date that the ATM Agreement is terminated in accordance with its terms. An aggregate of 3,850,000 shares of the Company’s common stock were sold through the ATM Agreement during the three months ended March 31, 2020 for net proceeds to the Company, after deducting the Agent’s commissions and other expenses, of $10.4 million. No ATM shares were sold during the first quarter of 2021. For both of the three months ended March 31, 2021 and 2020, the Company declared and paid dividends of $0.01 per common share, for an aggregate total of $0.7 million each three-month period. |
Other (Income) Expense, net
Other (Income) Expense, net | 3 Months Ended |
Mar. 31, 2021 | |
Other (Income) Expense, net | |
Other (Income) Expense, net | 16. Other (Income) Expense, net Other (income) expense, net, for the periods presented consisted of the following: Three months ended March 31, 2021 2020 (in thousands) Unrealized currency exchange loss $ 241 $ 1,618 Realized currency exchange gain (173) (291) Unrealized loss from gold and silver rounds/bullion, net (1) 66 151 Other income (448) (13) Total $ (314) $ 1,465 (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 18 . |
Net Income per Common Share
Net Income per Common Share | 3 Months Ended |
Mar. 31, 2021 | |
Net Income per Common Share | |
Net Income per Common Share | 17. Net Income per Common Share Basic earnings per common share are calculated based on the weighted average number of common shares outstanding for the period. Diluted earnings per common share are 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 of the Company’s RSUs and DSUs are considered to be dilutive in periods with net income. 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 3.3 million shares of common stock at weighted average exercise prices of $7.20 and $9.48 were outstanding at March 31, 2021 and 2020, 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 the reporting period, and therefore are anti-dilutive. Basic and diluted net income per common share is calculated as follows: Three months ended March 31, 2021 2020 Numerator: Net income (loss) from continuing operations 2,527 (3,218) Net income from discontinued operations - 97 Net income (loss) (in thousands) $ 2,527 $ (3,121) Denominator: Basic weighted average shares of common stock outstanding 74,405,031 66,022,202 Dilutive effect of share-based awards 356,851 - Diluted weighted average common shares outstanding 74,761,882 66,022,202 Basic and diluted net income (loss) per common share: Continuing operations 0.03 (0.05) Discontinued operations - - Basic and diluted net income (loss) per common share $ 0.03 $ (0.05) |
Fair Value Measurement
Fair Value Measurement | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Measurement | |
Fair Value Measurement | 18. 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 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and Level 3 Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). 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 March 31, 2021 and December 31, 2020: 2021 2020 Input Hierarchy Level (in thousands) Cash and cash equivalents $ 27,230 $ 25,405 Level 1 Gold and silver rounds/bullion $ 593 $ 671 Level 1 Accounts receivable, net $ 3,533 $ 4,226 Level 2 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 5 Accounts receivable, net include amounts due to the Company for deliveries of concentrates and doré sold to customers, net of embedded derivatives mark-to-market value of $0.1 as of March 31, 2021, and $0.2 million as of December 31, 2020. 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 and included in its accounts receivable on the accompanying Condensed Consolidated Balance Sheets related to mark-to-market adjustments. Please see Note 13 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 March 31, 2021 2020 Statement of Operations Classification (in thousands) Realized/unrealized derivative (loss) gain, net $ (35) $ (738) Sales, net Realized/unrealized gold and silver rounds/bullion gain (loss), net $ (66) $ (152) 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 March 31, 2021 Realized (loss) gain $ (44) $ 85 $ 5 $ 44 $ 1 $ 91 Unrealized (loss) gain (100) (82) 39 (66) 83 (126) Total realized/unrealized derivatives, net $ (144) $ 3 $ 44 $ (22) $ 84 $ (35) Gold Silver Copper Lead Zinc Total Three months ended March 31, 2020 Realized gain (loss) $ 351 $ 160 $ 5 $ (157) $ (817) $ (458) Unrealized (loss) gain (128) (325) (119) 50 242 (280) Total realized/unrealized derivatives, net $ 223 $ (165) $ (114) $ (107) $ (575) $ (738) |
Supplementary Cash Flow Informa
Supplementary Cash Flow Information | 3 Months Ended |
Mar. 31, 2021 | |
Supplementary Cash Flow Information | |
Supplementary Cash Flow Information | 19. 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 three months ended March 31, 2021 and 2020 consisted of the following: 2021 2020 (in thousands) Unrealized loss on gold and silver rounds/bullion $ 66 $ 151 Realized gain on gold and silver rounds/bullion - 1 Unrealized foreign currency exchange loss 241 1,618 Other 33 22 Total other operating adjustments $ 340 $ 1,792 |
COVID-19 Pandemic
COVID-19 Pandemic | 3 Months Ended |
Mar. 31, 2021 | |
COVID-19 Pandemic | |
COVID-19 Pandemic | 20. COVID-19 Pandemic On March 11, 2020, the World Health Organization declared the outbreak of a respiratory disease caused by a new novel coronavirus (“COVID-19”) as a “pandemic”. On March 31, 2020, the Mexican government issued a national health emergency with an immediate suspension order for all “non-essential” public and private sector business (which included mining) to mitigate the spread and transmission of the COVID-19. As a result, the Company suspended its Mexico operations and production on April 1, 2020. The Mexican government designated mining as an essential business in mid-May 2020 and as a result we were given approval to restart our operations on May 27, 2020. After a ramp-up period, the Company recommenced operations with appropriate safety measures in place to guard against and mitigate the virus and its spread. As of the date of the issuance of these unaudited Condensed Consolidated Financial Statements, there have been no other significant impacts, including impairments, to the Company’s operations and financial statements. However, the long-term impact of the COVID-19 outbreak on the Company’s results of operations, financial position and cash flows will depend on future developments, including the duration and spread of the outbreak and related advisories and restrictions. These developments and the impact of COVID-19 on the financial markets and the overall economy are highly uncertain and cannot be predicted. If the financial markets and/or the overall economy are impacted for an extended period, the Company’s results of operations, financial position and cash flows may be materially adversely affected. The Company is not able to estimate the duration of the pandemic and potential impact on its business if disruptions or delays in business developments and shipments of product occur. In addition, a severe prolonged economic downturn could result in a variety of risks to the business, including a decreased ability to raise additional capital when and if needed on acceptable terms, if at all. As the situation continues to evolve, the Company will continue to closely monitor market conditions and respond accordingly. The Company has completed various scenario planning analyses to consider potential impacts of COVID-19 on its business, including volatility in commodity prices, temporary disruptions and/or curtailments of operating activities (voluntary or involuntary). To provide additional flexibility to respond to potential downside scenarios, the Company utilized the ATM program that was previously in place to raise approximately $ 11.9 million through the sale of common stock during the first and second quarters of 2020 to provide additional financial flexibility. The Company believes that current working capital balances will be sufficient for the foreseeable future, although there is no assurance that will be the case. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events | |
Subsequent Events | 21. Subsequent Events On December 31, 2020, in connection with the spin-off by Gold Resource Corporation (the "Company" or "GRC") of its wholly-owned subsidiary, Fortitude Gold Corporation ("FGC"), into a separate, public company, the Company entered into a Management Services Agreement (the "Agreement") with FGC. Under the terms of the Agreement, GRC agreed to provide strategic, technical, management, and administrative support services to FGC. Due to the successful development, by FGC, of their own corporate, administrative and technical capabilities, the Company decided to terminate the Agreement and delivered a notice of termination on April 14, 2021. The Agreement provided that either party could terminate the Agreement upon 30 days written notice by one party to the other. Termination of the Agreement will be effective on May 21, 2021. On Friday, April 23, 2021, a decree that reforms labor outsourcing in Mexico was published in the Federation’s Official Gazette. This new decree amends the outsourcing provisions of the Federal Labor Law (FLL), the Social Security Law, the Law of the Institute of the National Housing Fund for Workers, the Federal Fiscal Code (FFC), the Income Tax Law and the Value Added Tax Law. Under this new decree, operating companies will no longer be able to source their labor resources used to carry out the core business functions from services entities or third-party providers. The Company has been monitoring the guidance provided and has initiated the efforts to comply with the newly published reform. The overall impact of the new decree and its provisions continue to be assessed. |
Basis of Preparation of Finan_2
Basis of Preparation of Financial Statements (Policy) | 3 Months Ended |
Mar. 31, 2021 | |
Basis of Preparation of Financial Statements | |
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, 2020 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. These reclassifications were mostly related to Discontinued Operations and separate presentation of stock-based compensation. |
Recently Adopted Accounting S_2
Recently Adopted Accounting Standards (Policy) | 3 Months Ended |
Mar. 31, 2021 | |
Recently Adopted Accounting Standards | |
Recently Adopted Accounting Standards | Recent accounting pronouncements issued have been evaluated and do not presently impact our financial statements and supplemental data. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Discontinued Operations | |
Schedule of discontinued operations in company's condensed consolidated financial statements | Results of discontinued operations for the three months ended March 31, 2020 are as follows ( in thousands Three months ended March 31, 2020 (Unaudited) Sales, net $ 5,857 Mine cost of sales 6,300 Mine gross loss (443) Exploration expenses 177 Other expense, net 48 Loss before income taxes (668) Income tax benefit (765) Net income from discontinued operations $ 97 Selected Statements of Cash Flows presenting depreciation and amortization, capital expenditures, sale proceeds and significant operating noncash items of FGC were as follows: Three months ended March 31, 2020 (Unaudited) Cash flows from discontinued operating activities: Net income $ 97 Adjustments to reconcile net income to net cash from operating activities: Deferred income taxes (765) Depreciation and amortization 1,422 Other operating adjustments (11) Changes in operating assets and liabilities: Accounts receivable (169) Inventories (1,786) Prepaid expenses and other current assets 82 Other non-current assets 931 Accounts payable and other accrued liabilities (1,030) Net cash used in discontinued operating activities (1,229) Cash flows from discontinued investing activities: Capital expenditures (3,447) Net cash used in discontinued investing activities (3,447) Cash flows from discontinued financing activities: Cash transferred from Gold Resource Corporation prior to Spin-off 4,508 Repayment of loans payable (216) Repayment of finance leases (107) Net cash provided by discontinued financing activities 4,185 Supplemental Cash Flow Information Discontinued Operations Non-cash investing activities: Change in capital expenditures in accounts payable $ 516 Change in estimate for asset retirement costs $ 435 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Revenue | |
Revenue from the sale of dore and concentrate | Three months ended March 31, 2021 2020 (in thousands) Doré sales, net Gold $ 2,487 $ 1,769 Silver 377 676 Less: Refining charges (71) (35) Total doré sales, net 2,793 2,410 Concentrate sales Gold 6,524 6,216 Silver 6,313 5,215 Copper 3,386 2,361 Lead 2,405 3,479 Zinc 8,766 9,040 Less: Treatment and refining charges (2,884) (5,834) Total concentrate sales, net 24,510 20,477 Realized/unrealized embedded derivative, net (35) (738) Total sales, net $ 27,268 $ 22,149 |
Gold and Silver Rounds_Bullion
Gold and Silver Rounds/Bullion (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Gold and Silver Rounds/Bullion | |
Schedule of Company's Holdings | 2021 2020 (Unaudited) Ounces Per Ounce Amount Ounces Per Ounce Amount (in thousands) (in thousands) Gold 184 $ 1,691 $ 311 189 $ 1,888 $ 357 Silver 11,750 $ 24.00 282 11,842 $ 26.49 314 Total holdings $ 593 $ 671 |
Inventories, net (Tables)
Inventories, net (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Inventories, net | |
Summary of Inventories | 2021 2020 (Unaudited) (in thousands) Stockpiles - underground mine $ 461 $ 648 Stockpiles - open pit mine 17 41 Concentrates 2,834 1,919 Doré, net (1) 1,107 459 Subtotal - product inventories 4,419 3,067 Materials and supplies (2) 7,165 6,928 Total $ 11,584 $ 9,995 (1) Net of reserve of nil and $368 at March 31, 2021 and December 31, 2020, respectively. (2) Net of reserve for obsolescence of $209 as of March 31, 2021 and December 31, 2020. |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Prepaid Expenses And Other Current Assets | |
Schedule of prepaid and other assets | 2021 2020 (Unaudited) (in thousands) Advances to suppliers $ 365 $ 374 Prepaid insurance 342 709 IVA taxes receivable, net 318 846 Other current assets 527 647 Total $ 1,552 $ 2,576 |
Property, Plant and Mine Deve_2
Property, Plant and Mine Development, net (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Mine Development, net | |
Schedule of property, plant and mine development | 2021 2020 (Unaudited) (in thousands) Asset retirement costs $ 1,071 $ 1,064 Construction-in-progress (1) 9,549 7,158 Furniture and office equipment 1,877 1,839 Land 230 230 Light vehicles and other mobile equipment 2,228 2,192 Machinery and equipment 31,273 31,227 Mill facilities and infrastructure 24,407 24,407 Mine Development 85,623 83,859 Software and licenses 1,619 1,619 Subtotal (2) 157,877 153,595 Accumulated depreciation and amortization (94,912) (91,084) Total $ 62,965 $ 62,511 (1) Includes accrued capital expenditures of $0.8 million and $1.0 million at March 31, 2021 and December 31, 2020, respectively. |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accrued Expenses and Other Current Liabilities | |
Schedule of Accrued Expenses and Other Current Liabilities | 2021 2020 (Unaudited) (in thousands) Accrued royalty payments 1,637 1,796 Dividends payable 248 247 Other payables 202 232 Total $ 2,087 $ 2,275 |
Reclamation and Remediation (Ta
Reclamation and Remediation (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Reclamation and Remediation | |
Changes in Reclamation and Remediation | 2021 2020 (Unaudited) (in thousands) Reclamation liabilities – balance at beginning of period $ 1,890 $ 2,003 Foreign currency exchange gain (61) (113) Reclamation liabilities – balance at end of period 1,829 1,890 Asset retirement obligation – balance at beginning of period 1,208 1,105 Changes in estimate 7 82 Accretion 24 79 Foreign currency exchange gain (39) (58) Asset retirement obligation – balance at end of period 1,200 1,208 Total period end balance $ 3,029 $ 3,098 |
Embedded Derivatives (Tables)
Embedded Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Embedded Derivatives | |
Summary of unsettled sales contracts | Gold Silver Copper Lead Zinc (ounces) (ounces) (tonnes) (tonnes) (tonnes) Under contract 4,531 302,534 534 1,398 4,842 Average forward price (per ounce or tonne) $ 1,806 $ 26.13 $ 8,386 $ 2,004 $ 2,759 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Stock-Based Compensation | |
Stock-based compensation expense | Three months ended March 31, 2021 2020 (in thousands) Stock options $ 227 $ 222 Restricted stock units (86) 248 Deferred stock units 343 - Total $ 484 $ 470 |
Other (Income) Expense, net (Ta
Other (Income) Expense, net (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Other (Income) Expense, net | |
Schedule of Other Expense, net | Three months ended March 31, 2021 2020 (in thousands) Unrealized currency exchange loss $ 241 $ 1,618 Realized currency exchange gain (173) (291) Unrealized loss from gold and silver rounds/bullion, net (1) 66 151 Other income (448) (13) Total $ (314) $ 1,465 (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 18 . |
Net Income per Common Share (Ta
Net Income per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Net Income per Common Share | |
Schedule of net income per common share | Three months ended March 31, 2021 2020 Numerator: Net income (loss) from continuing operations 2,527 (3,218) Net income from discontinued operations - 97 Net income (loss) (in thousands) $ 2,527 $ (3,121) Denominator: Basic weighted average shares of common stock outstanding 74,405,031 66,022,202 Dilutive effect of share-based awards 356,851 - Diluted weighted average common shares outstanding 74,761,882 66,022,202 Basic and diluted net income (loss) per common share: Continuing operations 0.03 (0.05) Discontinued operations - - Basic and diluted net income (loss) per common share $ 0.03 $ (0.05) |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Measurement | |
Assets measured at fair value by level within fair value hierarchy | 2021 2020 Input Hierarchy Level (in thousands) Cash and cash equivalents $ 27,230 $ 25,405 Level 1 Gold and silver rounds/bullion $ 593 $ 671 Level 1 Accounts receivable, net $ 3,533 $ 4,226 Level 2 |
Gains and Losses Related to Changes in Fair Value | Three months ended March 31, 2021 2020 Statement of Operations Classification (in thousands) Realized/unrealized derivative (loss) gain, net $ (35) $ (738) Sales, net Realized/unrealized gold and silver rounds/bullion gain (loss), net $ (66) $ (152) Other expense, net |
Realized and Unrealized Gain Losses on Derivatives | Gold Silver Copper Lead Zinc Total Three months ended March 31, 2021 Realized (loss) gain $ (44) $ 85 $ 5 $ 44 $ 1 $ 91 Unrealized (loss) gain (100) (82) 39 (66) 83 (126) Total realized/unrealized derivatives, net $ (144) $ 3 $ 44 $ (22) $ 84 $ (35) Gold Silver Copper Lead Zinc Total Three months ended March 31, 2020 Realized gain (loss) $ 351 $ 160 $ 5 $ (157) $ (817) $ (458) Unrealized (loss) gain (128) (325) (119) 50 242 (280) Total realized/unrealized derivatives, net $ 223 $ (165) $ (114) $ (107) $ (575) $ (738) |
Supplementary Cash Flow Infor_2
Supplementary Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Supplementary Cash Flow Information | |
Schedule of Supplementary Cash Flow Information | 2021 2020 (in thousands) Unrealized loss on gold and silver rounds/bullion $ 66 $ 151 Realized gain on gold and silver rounds/bullion - 1 Unrealized foreign currency exchange loss 241 1,618 Other 33 22 Total other operating adjustments $ 340 $ 1,792 |
Discontinued Operations - Resul
Discontinued Operations - Results of discontinued operations (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Net income (loss) from discontinued operations, net of income taxes | $ 97 |
Fortitude Gold Corporation and Subsidiaries | Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations, Spinoff | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Sales, net | 5,857 |
Mine cost of sales | 6,300 |
Mine gross profit | (443) |
Exploration expenses | 177 |
Other expense, net | 48 |
Loss before income taxes | (668) |
Provision for income taxes | (765) |
Net income (loss) from discontinued operations, net of income taxes | $ 97 |
Discontinued Operations - Selec
Discontinued Operations - Selected Statements of Cash Flows (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Cash flows from discontinued operating activities: | |
Net income from discontinuing operations | $ 97 |
Changes in operating assets and liabilities: | |
Net cash used in discontinued operating activities | (1,229) |
Cash flows from discontinued investing activities: | |
Net cash used in discontinued investing activities | (3,447) |
Cash flows from discontinued financing activities: | |
Cash transferred from Gold Resource Corporation at Spin-Off | 292 |
Fortitude Gold Corporation and Subsidiaries | Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations, Spinoff | |
Cash flows from discontinued operating activities: | |
Net income from discontinuing operations | 97 |
Adjustments to reconcile net income to net cash from operating activities: | |
Deferred income taxes | (765) |
Depreciation and amortization | 1,422 |
Other operating adjustments | (11) |
Changes in operating assets and liabilities: | |
Accounts receivable | (169) |
Inventories | (1,786) |
Prepaid expenses and other current assets | 82 |
Other non-current assets | 931 |
Accounts payable and other accrued liabilities | (1,030) |
Net cash used in discontinued operating activities | (1,229) |
Cash flows from discontinued investing activities: | |
Capital expenditures | (3,447) |
Net cash used in discontinued investing activities | (3,447) |
Cash flows from discontinued financing activities: | |
Cash transferred from Gold Resource Corporation prior to Spin-off | 4,508 |
Repayment of loans payable | (216) |
Repayment of finance leases | (107) |
Net cash provided by discontinued financing activities | 4,185 |
Non-cash investing activities: | |
Change in capital expenditures in accounts payable | 516 |
Change in estimate for asset retirement costs | $ 435 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Realized/unrealized embedded derivative, net | $ (35) | $ (738) |
Total sales, net | 27,268 | 22,149 |
Dore | ||
Disaggregation of Revenue [Line Items] | ||
Less: Treatment and refining charges | (71) | (35) |
Total sales, net | 2,793 | 2,410 |
Gold Dore | ||
Disaggregation of Revenue [Line Items] | ||
Total sales, net | 2,487 | 1,769 |
Silver Dore | ||
Disaggregation of Revenue [Line Items] | ||
Total sales, net | 377 | 676 |
Concentrate | ||
Disaggregation of Revenue [Line Items] | ||
Less: Treatment and refining charges | (2,884) | (5,834) |
Total sales, net | 24,510 | 20,477 |
Gold Concentrate | ||
Disaggregation of Revenue [Line Items] | ||
Total sales, net | 6,524 | 6,216 |
Silver Concentrate | ||
Disaggregation of Revenue [Line Items] | ||
Total sales, net | 6,313 | 5,215 |
Copper Concentrate | ||
Disaggregation of Revenue [Line Items] | ||
Total sales, net | 3,386 | 2,361 |
Lead Concentrate | ||
Disaggregation of Revenue [Line Items] | ||
Total sales, net | 2,405 | 3,479 |
Zinc Concentrate | ||
Disaggregation of Revenue [Line Items] | ||
Total sales, net | $ 8,766 | $ 9,040 |
Gold and Silver Rounds_Bullio_2
Gold and Silver Rounds/Bullion (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021USD ($)oz$ / oz | Dec. 31, 2020USD ($)oz$ / oz | |
Schedule of Investments [Line Items] | ||
Total carrying value | $ 593 | $ 671 |
Gold | ||
Schedule of Investments [Line Items] | ||
Ounces | oz | 184 | 189 |
Carrying value per ounce | $ / oz | 1,691 | 1,888 |
Total carrying value | $ 311 | $ 357 |
Silver | ||
Schedule of Investments [Line Items] | ||
Ounces | oz | 11,750 | 11,842 |
Carrying value per ounce | $ / oz | 24 | 26.49 |
Total carrying value | $ 282 | $ 314 |
Gold and Silver | ||
Schedule of Investments [Line Items] | ||
Other Income | $ 0 |
Inventories, net (Details)
Inventories, net (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | |
Stockpiles - underground mine | $ 461 | $ 648 | |
Stockpiles - open pit mine | 17 | 41 | |
Concentrates | 2,834 | 1,919 | |
Dore, net | [1] | 1,107 | 459 |
Subtotal - product inventories | 4,419 | 3,067 | |
Materials and supplies | [2] | 7,165 | 6,928 |
Total | 11,584 | 9,995 | |
Dore | |||
Inventory reserve | 0 | 368 | |
Materials and supplies | |||
Inventory reserve | $ 209 | $ 209 | |
[1] | Net of reserve of nil and $368 at March 31, 2021 and December 31, 2020, respectively. | ||
[2] | Net of reserve for obsolescence of $209 as of March 31, 2021 and December 31, 2020. |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income tax expense | $ 2,594,000 | $ (1,372,000) |
Effective tax rate | 21.00% | |
Withholding tax on dividends | 10.00% | |
Dividend withholding tax between countries | 5.00% | |
Liability for uncertain tax positions | $ 0 | |
GILTI Effective Tax Rate Above U.S. Tax Rate | 90.00% | |
GILTI Effective Tax Rate Percent Above U.S. Tax Rate | 18.90% | |
Mexico | ||
MITL corporate income tax rate | 37.50% | |
MITL corporate income tax rate excluding mining tax | 30.00% | |
Mining tax rate | 7.50% | |
Prior MITL Deductable Percentage | 100.00% | |
Exploration Expense Maximum Annual Deductable Percentage | 10.00% | |
Exploration Expense Period | 10 years | |
CANADA | ||
MITL corporate income tax rate | 26.50% |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Prepaid Expenses And Other Current Assets | ||
Advances to suppliers | $ 365 | $ 374 |
Prepaid insurance | 342 | 709 |
IVA taxes receivable, net | 318 | 846 |
Other current assets | 527 | 647 |
Total | $ 1,552 | $ 2,576 |
Property, Plant and Mine Deve_3
Property, Plant and Mine Development, net - Summary of Property, Equipment and Mine Development (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | |
Property, equipment and mine development - net | |||
Property and equipment, gross | [1] | $ 157,877 | $ 153,595 |
Accumulated depreciation and amortization | (94,912) | (91,084) | |
Total property, equipment and mine development - net | 62,965 | 62,511 | |
Accrued capital expenditures | 800 | 1,000 | |
Asset retirement costs | |||
Property, equipment and mine development - net | |||
Property and equipment, gross | 1,071 | 1,064 | |
Construction-in-progress | |||
Property, equipment and mine development - net | |||
Property and equipment, gross | 9,549 | 7,158 | |
Furniture and office equipment | |||
Property, equipment and mine development - net | |||
Property and equipment, gross | 1,877 | 1,839 | |
Land | |||
Property, equipment and mine development - net | |||
Property and equipment, gross | 230 | 230 | |
Light vehicles and other mobile equipment | |||
Property, equipment and mine development - net | |||
Property and equipment, gross | 2,228 | 2,192 | |
Machinery and equipment | |||
Property, equipment and mine development - net | |||
Property and equipment, gross | 31,273 | 31,227 | |
Mill facilities and infrastructure | |||
Property, equipment and mine development - net | |||
Property and equipment, gross | 24,407 | 24,407 | |
Mine Development | |||
Property, equipment and mine development - net | |||
Property and equipment, gross | 85,623 | 83,859 | |
Software and licenses | |||
Property, equipment and mine development - net | |||
Property and equipment, gross | $ 1,619 | $ 1,619 | |
[1] | Includes accrued capital expenditures of $0.8 million and $1.0 million at March 31, 2021 and December 31, 2020, respectively. |
Property, Plant and Mine Deve_4
Property, Plant and Mine Development, net - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Property, Plant and Mine Development, net | ||
Depreciation and amortization expense | $ 3,437 | $ 6,113 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Accrued Expenses and Other Current Liabilities | ||
Accrued royalty payments | $ 1,637 | $ 1,796 |
Dividends payable | 248 | 247 |
Other payables | 202 | 232 |
Total | $ 2,087 | $ 2,275 |
Reclamation and Remediation (De
Reclamation and Remediation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Asset Retirement Obligation, Roll Forward Analysis | ||
Reclamation liabilities - balance at beginning of period | $ 1,890 | $ 2,003 |
Foreign currency exchange gain | (61) | (113) |
Reclamation liabilities - balance at end of period | 1,829 | 1,890 |
Asset retirement obligation - balance at beginning of period | 1,208 | 1,105 |
Changes in estimate | 7 | 82 |
Accretion | 24 | 79 |
Foreign currency exchange gain | (39) | (58) |
Asset retirement obligation - balance at end of period | 1,200 | 1,208 |
Total period end balance | $ 3,029 | $ 3,098 |
Reclamation and Remediation - N
Reclamation and Remediation - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Asset Retirement Obligation | $ 1,200 | $ 1,208 | $ 1,105 |
Reclamation and remediation discount rate | 8.00% | ||
Reclamation Liabilities | $ 1,829 | 1,890 | $ 2,003 |
Aguila Project | |||
Reclamation Liabilities | 1,800 | 1,900 | |
Don David Gold Mine | |||
Asset Retirement Obligation | $ 1,200 | $ 1,200 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) $ in Millions | Mar. 31, 2021USD ($) |
Commitments and Contingencies | |
Equipment purchase commitments | $ 0.7 |
Embedded Derivatives (Details)
Embedded Derivatives (Details) | 3 Months Ended |
Mar. 31, 2021$ / t$ / oztoz | |
Gold | |
Embedded Derivative [Line Items] | |
Under contract | oz | 4,531 |
Average forward price | $ / oz | 1,806 |
Silver | |
Embedded Derivative [Line Items] | |
Under contract | oz | 302,534 |
Average forward price | $ / oz | 26.13 |
Copper | |
Embedded Derivative [Line Items] | |
Under contract | t | 534 |
Average forward price | $ / t | 8,386 |
Lead | |
Embedded Derivative [Line Items] | |
Under contract | t | 1,398 |
Average forward price | $ / t | 2,004 |
Zinc | |
Embedded Derivative [Line Items] | |
Under contract | t | 4,842 |
Average forward price | $ / t | 2,759 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-based compensation expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Stock-Based Compensation | ||
Stock options | $ 227 | $ 222 |
Restricted stock units | (86) | 248 |
Deferred stock units | 343 | |
Total | $ 484 | $ 470 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity Incentive plan shares for issuance authorized | 5,000,000 | ||
Weighted Average Exercise Price, Exercised | $ 1.32 | ||
Number of stock options exercised | 125,000 | 0 | |
Accrued expenses and other current liabilities | $ 2,087 | $ 2,275 | |
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 | 6,692 | ||
Fair value | $ 6,692 | ||
Vested (in shares) | 2,614 | 0 | |
Deferred Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of units Granted | 130,000 | ||
Additional disclosures | |||
Vesting period | 10 years | ||
Deferred stock units liability | $ 300 | ||
Deferred stock units expense | $ 300 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Apr. 03, 2018 | |
Value of shares issued | $ 10,350 | ||
Common Stock, Dividends, Per Share, Declared and Paid | $ 0.01 | $ 0.01 | |
Dividends | $ 744 | $ 665 | |
ATM Agreement | |||
Sale of shares | 0 | 3,850,000 | |
Value of shares issued | $ 10,400 | ||
Maximum | ATM Agreement | |||
Common stock aggregate gross sales price | $ 75,000 |
Other (Income) Expense, net (De
Other (Income) Expense, net (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Other (Income) Expense, net | ||
Unrealized currency exchange loss | $ 241 | $ 1,618 |
Realized currency exchange gain | (173) | (291) |
Unrealized loss from gold and silver rounds/bullion, net | 66 | 151 |
Other income | (448) | (13) |
Total | $ (314) | $ 1,465 |
Net Income per Common Share - N
Net Income per Common Share - Narrative (Details) - $ / shares shares in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Net Income per Common Share | ||
Stock options excluded from computation of diluted weighted average share outstanding | 3.9 | 3.3 |
Shares excluded from weighted average shares outstanding, exercise price | $ 7.20 | $ 9.48 |
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 | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Net Income per Common Share | ||
Net income (loss) from continuing operations | $ 2,527 | $ (3,218) |
Net income (loss) from discontinued operations, net of income taxes | 97 | |
Net income (loss) | $ 2,527 | $ (3,121) |
Basic weighted average shares of common stock outstanding | 74,405,031 | 66,022,202 |
Dilutive effect of share-based awards | 356,851 | |
Weighted Average Number of Shares Outstanding, Diluted, Total | 74,761,882 | 66,022,202 |
Basic and diluted net income (loss) per common share: | ||
Continuing operations | $ 0.03 | $ (0.05) |
Basic and diluted net income (loss) per common share | $ 0.03 | $ (0.05) |
Fair Value Measurement (Details
Fair Value Measurement (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net allowance for doubtful accounts | $ 100 | $ 200 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 27,230 | 25,405 |
Gold and silver rounds/bullion | 593 | 671 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Accounts receivable, net | $ 3,533 | $ 4,226 |
Fair Value Measurement - Statem
Fair Value Measurement - Statement Of Income Classification (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Sales, net | ||
Fair Value Statement Of Income Classification [Line Items] | ||
Realized/unrealized derivative (loss) gain, net | $ (35) | $ (738) |
Other expenses, net | ||
Fair Value Statement Of Income Classification [Line Items] | ||
Realized/unrealized gold and silver rounds/bullion gain (loss), net | $ (66) | $ (152) |
Fair Value Measurement - Realiz
Fair Value Measurement - Realized Unrealized Derivatives, net (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Derivatives, Fair Value [Line Items] | ||
Realized (loss) gain | $ 91 | $ (458) |
Unrealized (loss) gain | (126) | (280) |
Total realized/ unrealized derivatives, net | (35) | (738) |
Gold | ||
Derivatives, Fair Value [Line Items] | ||
Realized (loss) gain | (44) | 351 |
Unrealized (loss) gain | (100) | (128) |
Total realized/ unrealized derivatives, net | (144) | 223 |
Silver | ||
Derivatives, Fair Value [Line Items] | ||
Realized (loss) gain | 85 | 160 |
Unrealized (loss) gain | (82) | (325) |
Total realized/ unrealized derivatives, net | 3 | (165) |
Copper | ||
Derivatives, Fair Value [Line Items] | ||
Realized (loss) gain | 5 | 5 |
Unrealized (loss) gain | 39 | (119) |
Total realized/ unrealized derivatives, net | 44 | (114) |
Lead | ||
Derivatives, Fair Value [Line Items] | ||
Realized (loss) gain | 44 | (157) |
Unrealized (loss) gain | (66) | 50 |
Total realized/ unrealized derivatives, net | (22) | (107) |
Zinc | ||
Derivatives, Fair Value [Line Items] | ||
Realized (loss) gain | 1 | (817) |
Unrealized (loss) gain | 83 | 242 |
Total realized/ unrealized derivatives, net | $ 84 | $ (575) |
Supplementary Cash Flow Infor_3
Supplementary Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Supplementary Cash Flow Information | ||
Unrealized loss on gold and silver rounds/bullion | $ 66 | $ 151 |
Realized gain on gold and silver rounds/bullion | 1 | |
Unrealized foreign currency exchange loss | 241 | 1,618 |
Other | 33 | 22 |
Total other operating adjustments | $ 340 | $ 1,792 |
COVID-19 Pandemic (Details)
COVID-19 Pandemic (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2020USD ($) | |
ATM Agreement | |
Proceeds from sale of common stock | $ 11.9 |