Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 09, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 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 | 7900 E. Union Ave, | ||
Entity Address, Address Line Two | Suite 320, | ||
Entity Address, City or Town | Denver, | ||
Entity Address, State or Province | CO | ||
Entity Address, Postal Zip Code | 80237 | ||
City Area Code | 303 | ||
Local Phone Number | 320-7708 | ||
Title of 12(b) Security | Common Stock | ||
Trading Symbol | GORO | ||
Security Exchange Name | NYSEAMER | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | No | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 88,338,774 | ||
Entity Public Float | $ 192,056,111 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001160791 | ||
Current Fiscal Year End Date | --12-31 | ||
Auditor Name | Plante & Moran, PLLC | ||
Auditor Firm ID | 166 | ||
Auditor Location | Denver, Colorado |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 33,712 | $ 25,405 |
Gold and silver rounds | 589 | 671 |
Accounts receivable, net | 8,672 | 4,226 |
Inventories, net | 10,361 | 9,995 |
Promissory Note | 3,885 | |
Prepaid expenses and other current assets | 1,696 | 2,576 |
Total current assets | 58,915 | 42,873 |
Property, plant and mine development, net | 156,771 | 62,511 |
Deferred tax assets, net | 309 | |
Other non-current assets | 76 | 41 |
Total assets | 215,762 | 105,734 |
Current liabilities: | ||
Accounts payable | 13,308 | 8,782 |
Income taxes payable, net | 6,801 | 73 |
Mining royalty taxes payable, net | 2,975 | 955 |
Accrued expenses and other current liabilities | 6,575 | 2,275 |
Total current liabilities | 29,659 | 12,085 |
Reclamation and remediation liabilities | 3,112 | 3,098 |
Gold and silver stream agreements | 42,560 | |
Deferred tax liabilities, net | 13,126 | |
Contingent consideration | 4,603 | |
Other non-current liabilities | 1,952 | 13 |
Total liabilities | 95,012 | 15,196 |
Shareholders' equity: | ||
Common stock - $0.001 par value, 200,000,000 shares authorized: 88,338,774 and 74,376,958 shares outstanding at December 31, 2021 and December 31, 2020, respectively | 89 | 75 |
Additional paid-in capital | 110,153 | 84,865 |
Retained earnings | 17,563 | 12,653 |
Treasury stock at cost, 336,398 shares | (5,884) | (5,884) |
Accumulated other comprehensive loss | (1,171) | (1,171) |
Total shareholders' equity | 120,750 | 90,538 |
Total liabilities and shareholders' equity | $ 215,762 | $ 105,734 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
CONSOLIDATED BALANCE SHEETS | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares outstanding | 88,338,774 | 74,376,958 |
Treasury stock, shares | 336,398 | 336,398 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
CONSOLIDATED STATEMENTS OF OPERATIONS | |||
Sales, net | $ 125,196 | $ 90,692 | $ 120,301 |
Mine cost of sales: | |||
Production costs | 72,234 | 60,626 | 72,056 |
Depreciation and amortization | 15,996 | 17,413 | 19,549 |
Reclamation and remediation | 219 | 166 | 64 |
Total mine cost of sales | 88,449 | 78,205 | 91,669 |
Mine gross profit | 36,747 | 12,487 | 28,632 |
Costs and expenses: | |||
General and administrative expenses | 6,900 | 8,402 | 8,017 |
Exploration expenses | 4,886 | 2,485 | 2,720 |
Restructuring expenses | 2,423 | 1,316 | |
Stock-based compensation | 875 | 2,230 | 1,932 |
Realized and unrealized loss on zinc zero cost collar | 3,000 | ||
Other expense (income), net | 1,020 | (1,188) | 464 |
Total costs and expenses | 19,104 | 13,245 | 13,133 |
Income (loss) before income taxes | 17,643 | (758) | 15,499 |
Provision for income taxes | 9,615 | 5,573 | 9,967 |
Net income (loss) from continuing operations | 8,028 | (6,331) | 5,532 |
Net income from discontinued operations, net of income taxes | 10,690 | 300 | |
Net income | $ 8,028 | $ 4,359 | $ 5,832 |
Net income per common share: | |||
Basic net income (loss) per common share from continuing operations | $ 0.11 | $ (0.09) | $ 0.09 |
Diluted net income (loss) per common share from continuing operations | 0.11 | (0.09) | 0.09 |
Basic net income per common share from discontinued operations | 0.15 | ||
Diluted net income per common share from discontinued operations | 0.15 | ||
Basic net income per common share | 0.11 | 0.06 | 0.09 |
Diluted net income per common share | $ 0.11 | $ 0.06 | $ 0.09 |
Weighted average shares outstanding: | |||
Basic | 75,301,253 | 69,902,708 | 63,681,156 |
Diluted | 75,608,627 | 70,686,243 | 64,032,990 |
CONSOLIDATED STATEMENTS OF CHAN
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, 2018 | $ 121,602 | $ 12,656 | $ (5,884) | $ (1,171) | $ 127,262 | |
Balance (in shares) at Dec. 31, 2018 | 59,186,829 | |||||
Balance at Dec. 31, 2018 | $ 59 | |||||
Stock-based compensation | 1,932 | 1,932 | ||||
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) | 121,060 | |||||
Dividends declared | (1,612) | (1,612) | ||||
Issuance of stock, net of issuance costs | $ 6 | 24,540 | 24,546 | |||
Issuance of stock, net of issuance costs (in shares) | 6,650,588 | |||||
Net income loss | 5,832 | 5,832 | ||||
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 | 3,039 | $ 3,039 | ||||
Net stock options exercised (in shares) | 0 | |||||
Common stock issued for vested restricted stock units | $ 1 | $ 1 | ||||
Common stock issued for vested restricted stock units (in shares) | 238,062 | |||||
Dividends declared | (2,819) | (2,819) | ||||
Issuance of stock, net of issuance costs | $ 8 | 25,887 | 25,895 | |||
Issuance of stock, net of issuance costs (in shares) | 8,447,369 | |||||
Spin-off of Fortitude Gold Corporation | (92,232) | (5,763) | (97,995) | |||
Net income loss | 4,359 | 4,359 | ||||
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 | 671 | 671 | ||||
Net stock options exercised | 288 | $ 288 | ||||
Net stock options exercised (in shares) | 237,719 | 253,335 | ||||
Common stock issued for vested restricted stock units (in shares) | 75,262 | |||||
Dividends declared | (3,118) | $ (3,118) | ||||
Surrender of stock for taxes due on vesting | (207) | (207) | ||||
Surrender of stock for taxes due on vesting (in shares) | (65,795) | |||||
Issuance of stock, net of issuance costs | $ 14 | 24,536 | 24,550 | |||
Issuance of stock, net of issuance costs (in shares) | 13,714,630 | |||||
Net income loss | 8,028 | 8,028 | ||||
Balance at Dec. 31, 2021 | $ 110,153 | $ 17,563 | $ (5,884) | $ (1,171) | 120,750 | |
Balance (in shares) at Dec. 31, 2021 | 88,675,172 | |||||
Balance at Dec. 31, 2021 | $ 89 | $ 89 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net income | $ 8,028 | $ 4,359 | $ 5,832 |
Net income from discontinued operations | 10,690 | 300 | |
Net income (loss) from continuing operations | 8,028 | (6,331) | 5,532 |
Adjustments to reconcile net income from continuing operations to net cash from operating activities: | |||
Deferred income tax (benefit) expense | (2,216) | 3,508 | 3,857 |
Depreciation and amortization | 16,147 | 17,601 | 19,917 |
Stock-based compensation | 875 | 2,230 | 1,932 |
Share-based compensation | 877 | ||
Other operating adjustments | 2,709 | (404) | 305 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (4,446) | 4,136 | (6,618) |
Inventories | (708) | 1,036 | (1,976) |
Prepaid expenses and other current assets | (267) | (405) | 1,097 |
Other noncurrent assets | (8) | 4 | (3) |
Accounts payable and other accrued liabilities | 5,930 | (588) | 175 |
Mining royalty and income taxes payable, net | 8,737 | 426 | (106) |
Net cash provided by operating activities from continuing operations | 21,213 | 24,112 | |
Net cash provided by operating activities | 34,783 | ||
Cash flows from investing activities: | |||
Capital expenditures | (20,610) | (12,811) | (16,936) |
Cash acquisition costs, net of cash acquired | (2,363) | ||
Proceeds from the sale of gold and silver rounds | 4,846 | 2 | |
Net cash used in investing activities from continuing operations | (7,965) | (16,934) | |
Net cash used in investing activities | (22,973) | ||
Cash flows from financing activities: | |||
Proceeds from the exercise of stock options | 300 | 98 | |
Proceeds from issuance of stock | 25,795 | 24,449 | |
Dividends paid | (3,366) | (2,790) | (1,491) |
Cash related to the spin-off | (27,774) | ||
Other financing activities | 3 | ||
Other financing activities from discontinued operations | (452) | (2,019) | |
Net cash (used in) provided by financing activities | (3,063) | (5,221) | 21,037 |
Effect of exchange rate changes on cash and cash equivalents | (440) | (528) | (455) |
Cash flows from discontinued operations: | |||
Net cash provided by operating activities | 14,184 | (2,705) | |
Net cash used in investing activities | (6,488) | (22,538) | |
Net increase in cash and cash equivalents | 8,307 | 15,195 | 2,517 |
Cash and cash equivalents of continuing operations at beginning of period | 25,405 | 10,210 | 7,693 |
Cash and cash equivalents of continuing operations at end of period | $ 33,712 | $ 25,405 | $ 10,210 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Supplemental Cash Flow Information Continuing Operations | |||
Interest expense paid | $ 20 | $ 18 | |
Income and mining taxes paid | $ 4,939 | 2,734 | 3,743 |
Non-cash investing activities: | |||
Change in capital expenditures in accounts payable | 684 | (643) | 624 |
Change in estimate for asset retirement costs | $ 7 | $ 82 | $ 443 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Nature of Operations and Summary of Significant Accounting Policies | |
Nature of Operations and Summary of Significant Accounting Policies | 1. Nature of Operations and Summary of Significant Accounting Policies Nature of Operations Gold Resource Corporation (the “Company”) was organized under the laws of the State of Colorado on August 24, 1998. The Company is a producer of doré containing gold and silver and metal concentrates that contain gold, silver, copper, lead, and zinc in Oaxaca, Mexico. Acquisition On December 10, 2021, the Company completed the acquisition of all the issued and outstanding common shares of Aquila Resources Inc. Aquila’s principal asset is its 100% interest in the Back Forty Project located in Menominee County, Michigan, USA. The Back Forty Project has a polymetallic (gold, silver, copper, silver, lead, and zinc) Volcanogenic Massive Sulfide deposit. The Back Forty Project controls surface and mineral rights through ownership, leases with the State of Michigan, and royalties with private parties. The Company considered the appropriate accounting treatment with regards to the Financial Accounting Standards Board’s Accounting Standards Codification (“ASC”) 805 Business Combinations and determined it was appropriate to account for this transaction as an asset acquisition. Please see Note 2 Spin-Off On December 31, 2020, The Company completed the spin-off of its wholly-owned subsidiary, Fortitude Gold Corporation and its subsidiaries (“FGC” or “Nevada Mining Unit”), into a separate, public company Note 21 The spin-off was affected by the distribution of all of the outstanding shares of FGC common stock to the Company’s shareholders (the “Distribution”). The Company’s shareholders of record as of the close of business on December 28, 2020 (the “Record Date”) received one share of FGC common stock for every 3.5 Significant Accounting Policies Basis of Presentation The consolidated financial statements included herein are expressed in United States dollars and conform to U.S. GAAP. The consolidated financial statements include the accounts of the Company, its Mexican subsidiary, Don David Gold Mexico S.A. de C.V., and its newly acquired Aquila subsidiaries (See Exhibit 21.1 for material subsidiaries). Intercompany accounts and transactions have been eliminated in consolidation. Asset Acquisition The Company considered the appropriate accounting treatment with regards to the Financial Accounting Standards Board’s ASC 805 Business Combinations for all material merger and acquisition transactions as they occur. The facts and circumstances of each transaction are evaluated to determine the appropriate accounting. Please see Note 2 Discontinued Operations The Company presents discontinued operations when there is a disposal of a component group or a group of components that in its judgment represents a strategic shift that will have a major effect on its operations and financial results. The Company aggregates the results of operations for discontinued operations into a single line item in the Consolidated Statements of Operations for all periods presented. General corporate overhead is not allocated to discontinued operations. See Note 20 Segment Reporting The Company has organized its operations into three geographic regions. The geographic regions include Oaxaca, Mexico, Michigan, U.S.A. and Corporate and Other. Oaxaca, Mexico represents the Company’s only production stage property. Michigan, U.S.A. is an advanced exploration stage property. The Company’s business activities that are not considered production stage or advanced exploration stage properties are included in Corporate and Other . Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. The more significant areas requiring the use of management estimates and assumptions relate to Mineral Resources and Mineral Reserves that are the basis for future cash flow estimates utilized in impairment calculations and units-of-production depreciation calculations; asset and liability valuation related to acquisitions; accounting for asset acquisitions; future metal prices, especially as it relates to zinc zero cost collar; environmental remediation, reclamation and closure obligations; estimates of recoverable gold and other minerals in stockpiles; write-downs of inventory, stockpiles to net realizable value; valuation allowances for deferred tax assets and liabilities; valuation of contingent considerations and gold and silver stream agreements, provisional amounts related to income tax effects of newly enacted tax laws; and stock-based compensation. Management routinely makes judgments and estimates about the effects of matters that are inherently uncertain and bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances. Actual results could differ from these estimates. Reclassifications Certain amounts presented in prior periods have been reclassified to conform to the current period presentation. Starting 2020, the Company showed Stock-based compensation as a separate line item in the Consolidated Statements of Operations. In 2019, Stock-based compensation was included with General and administrative expenses. The reclassifications had no material effect on the Company’s results of operations or financial condition. Cash and Cash Equivalents Cash and cash equivalents consist of all cash balances and are highly liquid. Cash held in Mexican Pesos or Canadian Dollars is converted to U.S. Dollars at the closing exchange rate on December 31, 2021. Gold and Silver Rounds The Company sponsored a physical dividend program which was concluded in 2021. Historically, the Company purchased gold and silver rounds on the open market in order to diversify its treasury and provide an option for shareholders to convert their dividends into rounds. At December 31, 2021, the Company held gold and silver rounds carried at quoted market value prices based on the daily London P.M. fix as of the balance sheet date. The Company considers rounds a highly liquid investment. Accounts Receivable, net Accounts receivable consists of trade receivables, which are recorded net of allowance for doubtful accounts, from the sale of doré and metals concentrates, as well an embedded derivative based on mark-to-market adjustments for outstanding provisional invoices based on forward metal prices. Please see Note 14 Note 19 Inventories The major inventory categories are set forth below: Stockpile Inventories : Concentrate Inventories Doré Inventory: Materials and Supplies Inventories Write-downs of inventory are charged to production costs on the Consolidated Statements of Operations. Promissory Note The promissory note was acquired in the Aquila Transaction. In October 2021, Aquila sold its Wisconsin assets to Green Light Metals in return for a C$4.9 million ($3.9 million) promissory note. Under the promissory note, Green Light Metals is to pay C$0.9 million cash and deliver C$4.0 million in Green Light Metal shares once Green Light Metals goes public. The cash and shares will be delivered upon completion of Green Light Metals listing on the TSX and the shares are expected to represent approximately 18% of the total outstanding shares of Green Light Metals. Upon maturity on December 31, 2022, the shares of Green Light Metals will be recorded at fair value as available-for-sale securities. Due to the short maturity of the promissory note, the carrying amount approximates the fair value, and likewise, no interest and collateral is required. Property, Plant and Mine Development Land and Mineral Interests : Mine Development : Drilling costs incurred during the production phase for operational ore control are recorded as mine development and amortized using UOP. All other drilling and related costs are expensed as incurred. Mine development costs are amortized using the UOP method based on estimated recoverable ounces in Mineral Reserves. Property and Equipment Construction in Progress Depreciation and Amortization Range of Lives Asset retirement costs UOP Furniture, computer and office equipment 3 to 10 years Light vehicles and other mobile equipment 4 years Machinery and equipment UOP to 4 years Mill facilities and related infrastructure UOP Mine development and mineral interests UOP Impairment of Long-Lived Assets The Company evaluates its long-lived assets for impairment when events or changes in circumstances indicate that the related carrying amounts may not be recoverable. Asset impairment is considered to exist if the total estimated future cash flows on an undiscounted basis are less than the carrying amount of the asset. If an impairment is indicated, a determination is made whether an impairment has occurred. Impairment losses are measured either 1) as the excess of carrying value over the total discounted estimated future cash flows, or 2) by applying an expected fair value technique in the absence of an observable market price; losses are charged to expense on the Company’s Consolidated Statements of Operations. In estimating future cash flows, assets are grouped at the lowest level for which there are identifiable cash flows that are largely independent of future cash flows from other asset groups. Existing Mineral Resources and Mineral Reserves are included when estimating the fair value in determining whether the assets are impaired. The Company’s estimates of future cash flows are based on numerous assumptions including expected gold and other commodity prices, production levels, capital requirements and estimated salvage values. It is possible that actual future cash flows will be significantly different from the estimates, as actual future quantities of recoverable minerals, gold and other commodity prices, production levels and costs, and capital requirements are each subject to significant risks and uncertainties. Fair Value of Financial Instruments The recorded amounts of cash and cash equivalents, gold and silver rounds, receivables from provisional concentrate sales and accounts payable approximate fair value because of the short maturity of those instruments. The recorded amounts for the zinc zero cost collar are based on the London Metal Exchange forward underlying price over a period from the trade date to the payment date. Treasury Stock Treasury stock represents shares of the Company’s common stock which have been repurchased on the open market at the prevailing market price at the time of purchase and have not been cancelled. Treasury stock is shown at cost as a separate component of equity. Revenue Recognition The Company recognizes revenue from doré and concentrate sales. Doré sales Concentrate sales Production Costs Production costs include labor and benefits, royalties, concentrate and doré shipping costs, mining costs, fuel and lubricants, legal and professional fees related to mine operations, stock-based compensation attributable to mine workers, materials and supplies, repairs and maintenance, explosives, site support, housing and food, insurance, reagents, travel, medical services, security equipment, office rent, tools and other costs that support mining operations. Exploration Costs Exploration costs are charged to expense as incurred. Costs to identify new Mineral Resources and to evaluate potential Mineral Resources are considered exploration costs. Exploration activities conducted within the defined Mineral Resources are capitalized. Stock-Based Compensation The Company accounts for stock-based compensation under the fair value recognition and measurement provisions of U.S. GAAP. Those provisions require all stock-based payments, including grants of stock options, RSUs, and DSUs to be measured based on the grant date fair value of the awards, with the resulting expense generally recognized on a straight-line basis in the Consolidated Statements of Operations over the period during which services are performed in exchange for the award. The majority of the awards are earned over a service period of three years. DSUs are earned immediately at grant and expected to be paid out in cash in the future. DSUs are considered liability instruments and marked-to-market each reporting period. The Company's estimates may be impacted by certain variables including, but not limited to, stock price volatility, employee stock option exercise behaviors, additional stock option grants, and estimates of forfeitures. Reclamation and Remediation Costs Reclamation costs are allocated to expense over the life of the related assets and are periodically adjusted to reflect changes in the estimated present value resulting from the passage of time and revisions to the estimates of either the timing or amount of the reclamation and remediation costs. Reclamation obligations are based in part on when the spending for an existing environmental disturbance will occur. The Company reviews, at least on an annual basis, the reclamation obligation. Prior to 2014, the Company had been recognizing only reclamation and remediation obligations and all associated asset retirement costs were written off as the Company had not been reporting its proven and probable Mineral Reserves for its Don David Gold Mine. In 2014, the Company became a production stage company and therefore capitalized asset retirement costs along with the asset retirement obligation. Please see Note 11 Accounting for reclamation and remediation obligations requires management to make estimates unique to each mining operation of the future costs expected to be incurred to complete the reclamation and remediation work required to comply with existing laws and regulations. Actual costs incurred in future periods could differ from amounts estimated. Additionally, future changes to environmental laws and regulations could increase the extent of reclamation and remediation work required. Any such increases in future costs could materially impact the amounts charged to operations for reclamation and remediation. Accumulated Other Comprehensive Loss Accumulated other comprehensive loss is presented in the consolidated statements of changes in shareholders’ equity. Accumulated other comprehensive loss is composed of foreign currency translation adjustment effects related to the historical adjustment when the functional currency was the Mexican peso for our Mexico subsidiary. This loss will remain on our Consolidated Balance Sheets until the sale or dissolution of our Mexico subsidiary. Income and Mining Royalty Taxes Income and Mining Royalty Taxes are computed using the asset and liability method. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial and tax reporting purposes and the effect of net operating loss and foreign tax credit carryforwards using enacted tax rates in effect in the years in which the differences are expected to reverse. Deferred tax assets are evaluated to determine if it is more likely than not that they will be realized. Please see Note 6 Net Income Per Share Basic earnings per share is calculated based on the weighted average number of common shares outstanding for the period. Diluted income per share reflects the dilution that could occur if potentially dilutive securities, as determined using the treasury stock method, are converted into common stock. Potentially dilutive securities are excluded from the calculation when their inclusion would be anti-dilutive, such as periods when a net loss is reported or when the exercise price of the instrument exceeds the average fair market value of the underlying common stock. Foreign Currency The functional currency for all of the Company’s subsidiaries is the United States dollar (“U.S. dollar”). Concentration of Credit Risk The Company has considered and assessed the credit risk resulting from its concentrate sales and doré sales arrangements with its customers. In the event that the Company’s relationships with its customers are interrupted for any reason, the Company believes that it would be able to locate another entity to purchase its metals concentrates and doré bars; however, any interruption could temporarily disrupt the Company’s sale of its products and materially adversely affect operating results. The Company’s Arista and Alta Gracia mines, which are located in the State of Oaxaca, Mexico, accounted for 100%of the Company’s total net sales from continuing operations for the years ended December 31, 2021, 2020 and 2019, respectively. Some of the Company’s operating cash balances are maintained in accounts that currently exceed federally insured limits. The Company believes that the financial strength of the depositing institutions mitigates the underlying risk of loss. To date, these concentrations of credit risk have not had a significant impact on the Company’s financial position or results of operations. |
Aquila Acquisition
Aquila Acquisition | 12 Months Ended |
Dec. 31, 2021 | |
Aquila Acquisition | |
Aquila Acquisition | 2. Aquila Acquisition On December 10, 2021, the Company completed the Definitive Arrangement Agreement pursuant to which GRC acquired all of the issued and outstanding common shares of Aquila Resources Inc. (the "Acquisition"). Under the terms of the Acquisition, each holder of Aquila common shares (a “Shareholder”) received 0.0399 of GRC common share per Aquila share. Aquila had 343,725,063 issued and outstanding The Company considered the appropriate accounting treatment with regards to ASC 805 Business Combinations and determined it was appropriate to account for this transaction as an asset acquisition. This determination was made as the Back Forty Project, as a single asset, made up more than 90% of the acquired assets and there were no significant outputs or substantive processes. The following table summarizes the allocation of purchase price to the assets acquired and liabilities assumed as of the date of acquisition (in thousands): AQUILA ACQUISITION As of December 10, 2021 Consideration: Cash Consideration, including transaction costs $ 4,571 Stock Consideration (13,714,630 shares at $1.79 per share) 24,549 Total Consideration: $ 29,120 Value of net assets acquired: Assets: Cash and cash equivalents $ 2,208 Accounts receivable 142 Promissory Note 3,885 Prepaid expenses 29 Security deposits 27 Property, plant and mine development 89,579 Total Assets 95,870 Liabilities: Accounts payable and accrued liabilities 3,314 Leases payable - current 127 Exploration reclamation liability 611 Gold and silver stream agreements 42,421 Contingent consideration 4,603 Leases payable - long term 205 Deferred tax liability 15,469 Total Liabilities 66,750 Total net assets: $ 29,120 The deferred tax liability assumes an Internal Revenue Code Section 338(g) election (“338(g) election”) will not be made to step up the tax basis of the Back Forty Project to the book basis. The Company is currently evaluating certain elections, including the 338(g) election, and post-transaction structuring strategies to optimize the tax impacts of the acquisition. The final determination to implement these elections or strategies may impact the Consolidated Statements of Operations in a future period. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2021 | |
Revenue | |
Revenue | 3. Revenue The Company derives its revenue from the sale of doré and concentrates. The following table presents the Company’s net sales disaggregated by source: For the year ended December 31, 2021 2020 2019 (in thousands) Doré sales, net Gold $ 8,120 $ 8,719 $ 6,763 Silver 678 2,774 2,439 Less: Refining charges (136) (233) (171) Total doré sales, net 8,662 11,260 9,031 Concentrate sales Gold 32,593 22,145 27,184 Silver 26,095 20,391 21,347 Copper 13,495 9,387 9,930 Lead 13,442 12,012 16,116 Zinc 41,256 36,451 48,804 Less: Treatment and refining charges (11,349) (20,907) (13,825) Total concentrate sales, net 115,532 79,479 109,556 Realized gain embedded derivative, net 777 138 1,423 Unrealized gain (loss) - embedded derivative, net 225 (185) 291 Total sales, net $ 125,196 $ 90,692 $ 120,301 |
Gold and Silver Rounds
Gold and Silver Rounds | 12 Months Ended |
Dec. 31, 2021 | |
Gold and Silver Rounds | |
Gold and Silver Rounds | 4. Gold and Silver Rounds The Company holds gold and silver rounds which were formerly used in its dividend exchange program which was discontinued in 2021. The Company plans to sell the gold and silver rounds on the open market in 2022. During the year ended December 31, 2021, the Company distributed one (1) ounce of gold and thirty-nine (39) ounces of silver for a realized gain of $2 thousand in the dividend exchange program. Additionally, the Company used twelve (12) ounces of gold for employee recognition and one hundred forty-eight (148) ounces of silver rounds for marketing purposes. The realized gain is recorded in other income on a net basis. During the year ended December 31, 2020, the Company sold 1,641 ounces of gold rounds and 67,560 ounces of silver rounds for a realized gain of $1.0 million. At December 31, 2021 and 2020, the Company’s holdings of rounds, using quoted market prices, consisted of the following: As of December 31, 2021 As of December 31, 2020 Ounces Per Ounce Amount Ounces Per Ounce Amount (in thousands) (in thousands) Gold 176 $ 1,820 $ 320 189 $ 1,888 $ 357 Silver 11,655 $ 23.09 269 11,842 $ 26.49 314 Total holdings $ 589 $ 671 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2021 | |
Inventories | |
Inventories | 5. Inventories At December 31, 2021 and 2020, current inventories consisted of the following: As of As of December 31, December 31, 2021 2020 (in thousands) Stockpiles - underground mine $ - $ 648 Stockpiles - open pit mine - 41 Concentrates 2,048 1,919 Doré, net (1) 452 459 Subtotal - product inventories 2,500 3,067 Materials and supplies (2) 7,861 6,928 Total $ 10,361 $ 9,995 (1) Net of reserve of nil and $368 as of December 31, 2021 and 2020, respectively. (2) Net of reserve for obsolescence of $384 and $209 as of December 31, 2021 and 2020, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Taxes | |
Income Taxes | 6. Income Taxes The Company accounts for income taxes in accordance with the provisions of ASC 740, "Income Taxes" ("ASC 740") on a tax jurisdictional basis. The Company and its U.S. subsidiaries file U.S. tax returns and the Company’s foreign subsidiaries file tax returns in Mexico and in Canada. For financial reporting purposes, net income before income taxes includes the following components: Years Ended December 31, 2021 2020 2019 (in thousands) U.S. Operations $ (6,369) $ (7,196) $ (6,338) Foreign Operations 24,012 6,438 21,837 Total income before income taxes $ 17,643 $ (758) $ 15,499 The Company's income tax expense from continuing operations consists of the following: Years ended December 31, 2021 2020 2019 (in thousands) Current taxes: U.S. Federal $ - $ - $ - U.S. State 305 - - Foreign 11,426 3,294 6,210 Total current taxes $ 11,731 $ 3,294 $ 6,210 Deferred taxes: U.S. Federal $ - $ 2,999 $ 1,881 U.S. State - - - Foreign (2,116) (720) 1,876 Total deferred taxes $ (2,116) $ 2,279 $ 3,757 Total income tax provision $ 9,615 $ 5,573 $ 9,967 The provision for income taxes for the years ended December 31, 2021, 2020 and 2019, differs from the amount of income tax determined by applying the applicable United States statutory federal income tax rate to pre-tax income from operations as a result of the following differences: For the year ended December 31, 2021 2020 2019 (in thousands) Tax at statutory rates $ 3,705 $ (159) $ 3,255 Foreign rate differential 2,095 558 1,969 GILTI Inclusion - (886) 2,173 Changes in deferred tax assets (1,189) 3,919 277 Mexico mining tax 1,590 280 1,126 Foreign exchange 535 866 255 Stock option expiration 2,471 449 361 Mexico withholding tax 679 192 374 Deduction for inflation in Mexico (981) (550) (338) U.S. State income tax 585 127 139 Other 125 777 376 Tax provision $ 9,615 $ 5,573 $ 9,967 The following table sets forth deferred tax assets and liabilities: As of December 31, 2021 2020 (in thousands) Non-current deferred tax assets: Tax loss carryforward $ 29,496 $ 2,190 Property and equipment 12,092 10,355 Share-based compensation 1,068 4,018 Foreign tax credits 4,089 4,089 Inventory 142 79 Foreign mining tax 793 199 Accounts payable 2,708 912 Employee profit sharing obligation 566 - Zinc derivatives 608 - Other 362 377 Total deferred tax assets 51,924 22,219 Valuation allowance (36,933) (10,592) Deferred tax assets after valuation allowance $ 14,991 $ 11,627 Deferred tax liability – Property, plant and mine development (28,117) (11,318) Net deferred tax (liability) asset $ (13,126) $ 309 In accordance with ASC 740, the Company presents deferred tax assets net of its deferred tax liabilities on a tax jurisdictional basis on its Consolidated Balance Sheets. The net deferred tax liability of $13.1 million as of December 31, 2021 is primarily related to the Aquila acquisition. The Company is currently evaluating certain elections and post-transaction structuring strategies to optimize the tax impacts of the acquisition. The final determination to implement these elections or strategies may impact the Consolidated Statements of Operations in a future period. The Company evaluates the evidence available to determine whether a valuation allowance is required on deferred tax assets. As of December 31, 2021, the Company determined that a valuation allowance of $36.9 million was necessary due to the uncertain utilization of specific deferred tax assets, primarily net operating loss carryforwards, in both U.S. and Canada. $27.5 million of the valuation allowance related to the Aquila acquisition. As of December 31, 2020, the Company determined that a full valuation allowance on the US deferred tax assets was necessary as a result of the spin-off of Fortitude Gold Corporation and its subsidiaries. At December 31, 2021, the Company has U.S. federal loss carryforwards of $80.7 million, of which $33.9 million have no expiration date, and $46.8 million that expire at various dates between 2027 and 2037; U.S. Foreign Tax Credits of $4.1 million that expire at various dates between 2023 and 2026; federal capital loss carryforwards of $0.4 million that expire at various dates between 2022 and 2024; state of Colorado tax loss carryforwards of $40.5 million, of which $30.8 million expire at various dates between 2022 and 2037 and $9.8 million that have no expiration; state of Michigan tax loss carryforwards of $51.6 million, of which $24.4 million have no expiration and $27.2 million expire at various dates between 2022 and 2027; and Canadian tax loss carryforwards of $30.8 million that expire between 2026 and 2041. Mexico Mining Taxation Mining entities in Mexico are subject to two mining duties, in addition to the 30% Mexico corporate income tax: (i) a “special” mining duty of 7.5% of taxable income as defined under Mexican tax law (also referred to as “mining royalty tax”) on extraction activities performed by concession holders, and (ii) the “extraordinary” mining duty of 0.5% on gross revenue from the sale of gold, silver and platinum. The mining royalty tax is generally applicable to earnings before income tax, depreciation, depletion, amortization, and interest. In calculating the mining royalty tax, there are no deductions related to depreciable costs from operational fixed assets, but exploration and prospecting depreciable costs are deductible when incurred. Both duties are tax deductible for income tax purposes. As a result, our effective tax rate applicable to the Company’s Mexican operations is substantially higher than Mexico statutory rate. The Company periodically transfers funds from its Mexican wholly-owned subsidiary to the U.S. in the form of dividends. Mexico requires a 10% withholding tax on dividends on all post-2013 earnings. The Company began distributing post-2013 earnings from Mexico in 2018. According to the existing U.S. – Mexico tax treaty, the dividend withholding tax between these countries is limited to 5% if certain requirements are met. The Company determined that it had met such requirements and paid a 5% withholding tax on dividends received from Mexico, and as a result, paid $0.5 million, $0.2 million, and $0.4 million for years ending December 31, 2021, 2020 and 2019, respectively. Other Tax Disclosures 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 are subject to an effective tax rate higher than 90% of the U.S. tax rate. The Company determined that it was not subject to GILTI tax in 2019 due to this high tax exception rule, therefore the Company recorded the reversal of the prior year GILTI tax expense that resulted in $0.9 million tax benefit for the year ended December 31, 2020. As of both December 31, 2021 and 2020, the Company believes that it has no unrecognized tax benefits. If the Company were to determine there was an unrecognized tax benefit, the Company would recognize the liability and related interest and penalties within income tax expense. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Dec. 31, 2021 | |
Prepaid Expenses And Other Current Assets | |
Prepaid Expenses and Other Current Assets | 7 . Prepaid Expenses and Other Current Assets At December 31, 2021 and 2020, prepaid expenses and other current assets consisted of the following: As of As of December 31, December 31, 2021 2020 (in thousands) Advances to suppliers $ 188 $ 374 Prepaid insurance 1,222 709 IVA taxes receivable, net 20 846 Other current assets 266 647 Total $ 1,696 $ 2,576 IVA taxes receivable, net is a value added (“IVA”) tax in Mexico assessed on purchases of materials and services and sales of products. Likewise, businesses owe IVA taxes as the business sells a product and collects IVA taxes from its customers. Businesses are generally entitled to recover the taxes they have paid related to purchases of materials and services, either as a refund or credit to IVA tax payable. Amounts recorded as IVA taxes in the consolidated financial statements represent the net estimated IVA tax receivable or payable, since there is a legal right of offset of IVA taxes. |
Property, Plant and Mine Develo
Property, Plant and Mine Development, net | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Mine Development, net | |
Property, Plant and Mine Development, net | 8. Property, Plant and Mine Development, net At December 31, 2021 and 2020, property, plant and mine development consisted of the following: As of As of December 31, December 31, 2021 2020 (in thousands) Asset retirement costs $ 1,065 $ 1,064 Construction-in-progress (1) 15,854 7,158 Furniture and office equipment 1,685 1,839 Land 9,230 230 Mineral interest 79,964 - Light vehicles and other mobile equipment 2,224 2,192 Machinery and equipment 33,213 31,227 Mill facilities and infrastructure 24,973 24,407 Mine Development 92,138 83,859 Software and licenses 1,592 1,619 Subtotal (2) 261,938 153,595 Accumulated depreciation and amortization (105,167) (91,084) Total $ 156,771 $ 62,511 (1) Primarily related to the dry stack filtration plant. (2) Includes capital expenditures in accounts payable and accruals of $1.7 million and $1.0 at December 31, 2021 and 2020, respectively. The Company recorded depreciation and amortization expense for the years ended December 31, 2021, 2020 and 2019 of $16.1 million, $17.6 million, and $19.9 million, respectively. |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Accrued Expenses and Other Liabilities | |
Accrued Expenses and Other Liabilities | 9. Accrued Expenses and Other Liabilities At December 31, 2021 and 2020, accrued expenses and other current and non-current liabilities consisted of the following: As of As of December 31, December 31, 2021 2020 (in thousands) Accrued royalty payments 1,743 1,796 Dividends payable - 247 Zinc derivatives 1,844 - Employee profit sharing obligation 1,888 - Other payables 1,100 232 Total accrued expenses and other current liabilities $ 6,575 $ 2,275 Accrued non-current labor obligation 920 - Deferred stock unit compensation liability 206 - Other long-term liabilities 826 13 Total other non-current liabilities $ 1,952 $ 13 In 2021, the Company entered into zinc zero cost collars consisting of call and put options on the same volume to manage its near-term exposure to cash flow variability from zinc price risks. As of December 31, 2021, the Company had $1.8 million liability related to the program. On 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, whereby operating companies will no longer be able to source their labor resources used to carry out the core business functions from service entities or third-party providers. Under Mexican law, employees are entitled to receive statutory profit sharing (Participacion a los Trabajadores de las Utilidades or “PTU”) payments. The required cash payment to employees in the aggregate is equal to 10% of their employer’s profit subject to PTU, which differs from profit determined under U.S. GAAP. In the past, the Company was not subject to PTU payments, as it had been sourcing its labor resources through a third-party service provider. As a result of adopting the new legislation in 2021, $1.9 million for PTU was recorded in current liabilities and production cost, as well as $0.9 million for statutory employee severance benefits recorded in other long-term liabilities and other expenses. |
Gold and Silver Stream Agreemen
Gold and Silver Stream Agreements | 12 Months Ended |
Dec. 31, 2021 | |
Gold and Silver Stream Agreements | |
Gold and Silver Stream Agreements | 10. Gold and Silver Stream Agreements The following table presents the Company’s liabilities related to the Gold and Silver Stream Agreements as of December 31, 2021 and 2020: As of As of December 31, December 31, 2021 2019 (in thousands) Liability related to the Gold Stream Agreement $ 20,364 $ - Liability related to the Silver Stream Agreement 22,196 - Total liability $ 42,560 $ - Periodic interest expense will be incurred based on an implied interest rate. The implied interest rate is determined based on the timing and probability of future production and an 8% discount rate. Interest expense will be recorded to the Consolidated Statements of Operations and the gold and silver stream agreement liability on the Consolidated Balance Sheet. Gold Streaming Agreement In November 2017, Aquila completed a financing transaction with Osisko Bermuda Limited (“OBL”), a wholly-owned subsidiary of Osisko Gold Royalties Ltd (TSX & NYSE: OR), pursuant to which OBL agreed to commit approximately $55 million to Aquila through a gold stream purchase agreement. In June 2020, Aquila amended its agreement with Osisko, reducing the total committed amount to $50 million as well as adjusting certain milestone dates under the gold stream to align with the current project development timeline. Aquila had received a total of $20 million of the committed funds at the time of the Gold Resource Corporation acquisition. Remaining deposits from OBL are $5 million upon receipt of permits required for the development and operation of the Back Forty Project and $25 million upon the first drawdown of an appropriate project debt finance facility. OBL has been provided a general security agreement over the Back Forty Project which consists of the subsidiaries of Gold Resource Acquisition CO, a 100% owned subsidiary of Gold Resource Corporation. The initial term of the agreement is for 40 years, automatically renewable for successive ten-year periods. The agreement is subject to certain operating and financial covenants, which are in good standing as of December 31, 2021. The $20 million received from OBL through December 31, 2021 is shown as a long-term liability on the Consolidated Balance Sheet along with an implied interest rate. The implied interest rate is applied on OBL advance payments and calculated on the total expected life-of-mine production to be deliverable (as supported in the Back Forty Project Preliminary Economic Assessment) at the five-year average street consensus metal prices (based on the median) evaluated at December 31, 2021 and is discounted at 8.0%. As the remaining $30 million deposit is subject to the completion of certain milestones and the satisfaction of certain other conditions, this amount is not reflected on the Consolidated Balance Sheet. Per the terms of the gold stream agreement, OBL will purchase 18.5% of the refined gold from Back Forty (the “Threshold Stream Percentage”) until the Company has delivered 105,000 ounces of gold (the “Production Threshold”). Upon satisfaction of the Production Threshold, the Threshold Stream Percentage will be reduced to 9.25% of the refined gold (the “Tail Stream”). In exchange for the refined gold delivered under the Stream Agreement, OBL will pay the Company ongoing payments equal to 30% of the spot price of gold on the day of delivery, subject to a maximum payment of $600 per ounce. Where the market price of gold is greater than price paid, the difference realized from the sale of the gold will be applied against the deposit received from Osisko. (See Note 12 Commitments and Contingencies. Silver Stream Agreement Through a series of contracts, Aquila executed a silver stream agreement with OBL to purchase 85% of the silver produced and sold at the Back Forty Project. A total of $17.2 million has been advanced under the agreement as at December 31, 2021. There are no future deposits remaining under the agreement. The initial term of the agreement is for 40 years, automatically renewable for successive ten-year periods. The agreement is subject to certain operating and financial covenants, which are in good standing as of December 31, 2021. Per the terms of the silver stream agreement, OBL will purchase 85% of the silver produced from the Back Forty Project at a fixed price of $4 per ounce of silver. Where the market price of silver is greater than $4 per ounce, the difference realized from the sale of the silver will be applied against the deposit received from Osisko. The $17.2 million received from OBL through December 31, 2021 is shown as a long-term liability on the Consolidated Balance Sheet and includes an implied interest rate. (See Note 12 Commitments and Contingencies. |
Reclamation and Remediation
Reclamation and Remediation | 12 Months Ended |
Dec. 31, 2021 | |
Reclamation and Remediation | |
Reclamation and Remediation | 11. Reclamation and Remediation The following table presents the changes in the Company’s reclamation and remediation obligations for the years ended December 31, 2021 and 2020: 2021 2020 (in thousands) Reclamation liabilities – balance at beginning of period $ 1,890 $ 2,003 Foreign currency exchange gain (57) (113) Reclamation liabilities – balance at end of period 1,833 1,890 Asset retirement obligation – balance at beginning of period 1,208 1,105 Changes in estimate - 82 Accretion 109 79 Foreign currency exchange gain (38) (58) Asset retirement obligation – balance at end of period 1,279 1,208 Total period end balance $ 3,112 $ 3,098 The Company’s undiscounted reclamation liabilities of $1.8 million and $1.9 million as of December 31, 2021 and 2020, respectively, are related to DDGM in Mexico. These represent reclamation liabilities that were expensed through 2013 before proven and probable Mineral 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 and 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 were discounted using a credit adjusted risk-free rate of 8%. As of December 31, 2021, and 2020, the Company’s asset retirement obligation related to the Don David Gold Mine in Mexico was $1.3 million and $1.2 million, respectively. The Company has recoded $0.6 million in reclamation liabilities to remediate exploration drill holes at the Back Forty Project in Michigan, USA. The amount is recorded in other non-current liabilities. Upon completion of the definitive feasibility study and the related mine closure plan, an asset for asset retirement obligation and corresponding liability for reclamation and remediation will be recorded. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies | |
Commitments and Contingencies | 12. Commitments and Contingencies As of December 31, 2021 and 2020, the Company had equipment purchase commitments aggregating approximately $0.4 million. Contingent Consideration With the Aquila acquisition, the Company assumed contingent consideration. On December 30, 2013, Aquila’s shareholders approved the acquisition of 100% of the shares of HudBay Michigan Inc. (“HMI”), a subsidiary of HudBay Minerals Inc. (“HudBay”), effectively giving Aquila 100% ownership in the Back Forty Project (the “HMI Acquisition”). Pursuant to the HMI Acquisition, HudBay’s 51% interest in the Back Forty Project was acquired in consideration for the issuance of common shares of Aquila, future milestone payments tied to the development of the Back Forty Project and a 1% net smelter return royalty on production from certain land parcels in the project. The issuance of shares and 1% net smelter obligations were settled before the Company acquired Aquila. The contingent consideration is composed of the following: The value of future installments is based on C$9 million tied to development of the Back Forty project as follows: a. C$3 million payable on completion of any form of financing for purposes including the commencement of construction of Back Forty, up to 50% of the C$3 million can be paid, at the Company’s option in Gold Resource Corporation shares with the balance payable in cash (if as of November 2023 this milestone has not been achieved, HMI has the right to repurchase a 51% ownership in the Back Forty Project); b. C$2 million payable in cash 90 days after the commencement of commercial production; c. C$2 million payable in cash 270 days after the commencement of commercial production, and; d. C$2 million payable in cash 450 days after the commencement of commercial production. The value of the contingent consideration at December 31, 2021 was $4.6 million. The contingent consideration will be adjusted for the time value of money and the likelihood of the milestone payments. Any future changes in the value of the contingent consideration will be recognized in the Consolidated Statements of Operations. Other Contingencies The Company has certain other contingencies resulting from litigation, claims, and other commitments and is 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 flow. With the successful acquisition of Aquila Resources Inc. on December 10, 2021, the Company assumed substantial liabilities that relate to the gold and silver stream agreements with Osisko Bermuda Limited. Under the agreements, Osisko deposited a total of $37.2 million upfront in exchange for a portion of the future gold and silver production from the Back Forty Project. The stream agreements contain customary provisions regarding default and security. In the event that our subsidiary defaults under the stream agreements, including achieving commercial production at an agreed upon date, it may be required to repay the deposit plus accumulated interest at a rate agreed with Osisko. If it fails to do so, Osisko may be entitled to enforce their remedies as a secured party and take possession of the assets that comprise the Back Forty Project. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2021 | |
Shareholders' Equity | |
Shareholders' Equity | 13. Shareholders’ Equity In the year ended December 31, 2021, the Company declared dividends of $3.1 million and paid dividends of $3.4 million, or $0.0433 per share. The Company declared and paid dividends of $2.8 million, or $0.04 million per share for the year ended December 31, 2020. 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 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 nil , 8,421,259 shares, and 6,625,588 shares of the Company’s common stock were sold through the ATM Agreement during the years ended December 31, 2021, 2020 and 2019, for net proceeds to the Company, after deducting the Agent’s commissions and other expenses, of $ 0.0 million, $ 25.8 million, and $ 24.4 million, respectively. During the year ended December 31, 2021, the Company issued 13,714,630 shares of common stock in connection with the Aquila acquisition at a price of $1.79 per share in exchange for 100% of Aquila’s common shares. During the year ended December 31, 2020, the Company issued 26,110 shares of its common stock at a price of $3.83 per share in connection with its purchase of the Golden Mile project (a Nevada Mining Unit Asset). During the year ended December 31, 2019, the Company issued 25,000 shares of its common stock at a value of $3.88 per share as payment for a one-year investor relations agreement with a third-party. |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2021 | |
Derivatives | |
Derivatives | 14. Derivatives Embedded Derivatives Concentrate Sales Concentrate sales contracts contain embedded derivatives due to the provisional pricing terms for shipments pending final settlement. 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 20 The following table summarizes the Company’s unsettled sales contracts at December 31, 2021, with the quantities of metals under contract subject to final pricing occurring through February 2022: Gold Silver Copper Lead Zinc Total (ounces) (ounces) (tonnes) (tonnes) (tonnes) Under contract 3,014 215,786 275 1,503 4,180 Average forward price (per ounce or tonne) $ 1,803 $ 23.18 $ 9,598 $ 2,311 $ 3,356 Unsettled sales contracts value (in thousands) $ 5,434 $ 5,002 $ 2,639 $ 3,473 $ 14,028 $ 30,576 Other Derivatives Zinc zero cost collar Derivative instruments that are not designated as hedging instruments are required to be recorded on the balance sheet at fair value. Changes in fair value will impact the Company’s earnings through mark-to-market adjustments until the physical commodity is delivered or the financial instrument is settled. The fair value does not reflect the realized or cash value of the instrument. Effective May 18, 2021, GRC entered into Trading Agreement with Auramet International LLC that govern nonexchange traded, over-the-counter, spot, forward and option transactions on both a deliverable and non-deliverable basis involving various metals and currencies. In 2021, the Company had a realized loss of $1.2 million and an unrealized loss of $1.8 million related to the program. The agreement allows for the trader to require cash collateral should market value of contracts be above uncommitted trading line. As of December 31, 2021, our remaining hedge program was in an acceptable position to the trading line, thus there was no collateral required. As of December 31, 2021, the Company’s derivatives not designated as hedges consist of zinc zero cost collars used to manage its near-term exposure to cash flow variability from zinc price risks. A zero cost collar is a combination of two options: a sold call option and a purchased put option. As of December 31, 2021, the Company maintained an outstanding derivative position of 5,700 tonnes for January 2022 through December 2022 with an average ceiling price of $3,342 per tonne of zinc and a floor price of $3,047 per tonne of zinc. Derivatives are carried at fair value and on a net basis as a legal right of offset exists with the same counterparty. Otherwise, any fair value gains or losses are recognized in earnings in the current period. The fair value does not reflect the realized or cash value of the instrument. Mark-to-market adjustments are made until the physical commodity is delivered or the financial instrument is settled. The December 2021 London Metal Exchange (“LME”) average zinc price of $3,408 exceeded the call option ceiling of $3,066, resulting in a realized loss of $478 thousand. The mark-to-market adjustment on the remaining 5,700 tonnes resulted in an unrealized loss of $1.8 million recorded in the Consolidates Statements of Operations and in Accrued expenses and other current liabilities in the Consolidated Balance Sheets. Subsequent to year end, on January 4, 2022, the Company executed additional derivatives of zero cost collars to manage its near-term exposure to cash flow variability from zinc price risks through December 2022. The Company sold call options to establish the ceiling price of $3,500 per tonne of zinc that the Company will receive for the contracted zinc volume of 3,150 tonnes for April 2022 through December 2022. The purchased put establishes the floor price of $3,200 per tonne of zinc that we will receive for the same contracted tonnes and period of time. The Company manages credit risk by selecting counterparties that it believes to be financially strong, by entering into netting arrangements with counterparties and by requiring other credit risk mitigants, as appropriate. The Company actively evaluates the creditworthiness of its counterparties, assigns appropriate credit limits, and monitors credit exposures against those assigned limits. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2021 | |
Employee Benefits | |
Employee Benefits | 15. Employee Benefits Effective October 2012, the Company adopted a profit sharing plan (the “Plan”) which covers all U.S. employees. The Plan meets the requirements of a qualified retirement plan pursuant to the provisions of Section 401(k) of the Internal Revenue Code. The Plan also provides eligible employees the opportunity to make tax deferred contributions to a retirement trust account up to 50% of their qualified wages, subject to the IRS annual maximums. On 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, whereby operating companies will no longer be able to source their labor resources used to carry out the core business functions from service entities or third-party providers. Under Mexican law, employees are entitled to receive statutory profit sharing (Participacion a los Trabajadores de las Utilidades or “PTU”) payments. The required cash payment to employees in the aggregate is equal to 10% of their employer’s profit subject to PTU, which differs from profit determined under U.S. GAAP. Please see Note 9 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Stock-Based Compensation | |
Stock-Based Compensation | 16. 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, 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 are a qualifying instrument under the terms of the Company’s Incentive 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 may also issue DSUs for directors in lieu of board fees at their request. As of December 31, 2021, there were 1,960 DSUs granted in lieu of board fees that are also subject to mark-to-market adjustment. As of December 31, 2021, the Company recorded $0.2 million of other non-current liability Stock-Based Compensation Expense Stock-based compensation expense for stock options, RSUs, and DSUs is as follows: For the year ended December 31, 2021 2020 2019 (in thousands) Stock options $ 549 $ 1,956 $ 1,458 Restricted stock units 120 1,083 474 Deferred stock units 206 - - Total $ 875 $ 3,039 $ 1,932 In 2020, in connection with the Fortitude Gold Spin-Off, the Company accelerated the vesting on 105,568 stock options and 127,068 RSU’s for four employees which resulted in $0.8 million of incremental stock-based compensation, included in restructuring expense. The estimated unrecognized stock-based compensation expense from unvested options and RSUs as of December 31, 2021 was approximately $0.7 million and $0.3 million, respectively, and is expected to be recognized over the remaining vesting periods of up to three years. The Company has a short-term incentive plan (“STIP”) for its executive officers that provides for the grant of either cash or stock-based bonus awards payable upon achievement of specified performance metrics. As of December 31, 2021 we accrued $0.7 million related to the STIP program. As of December 31, 2020, there were no accruals related to the STIP Stock Options A summary of stock option activity under the Incentive Plan for the years ended December 31, 2021 and 2020 is presented below: Shares Weighted Average Exercise Price (per share) Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (thousands) Outstanding as of December 31, 2019 4,564,735 $ 8.54 5.09 $ 4,513 Granted 100,000 3.45 - Exercised - - - Expired (486,666) 13.82 - Forfeited (4,901) 6.57 - Outstanding as of December 31, 2020 4,173,168 $ 6.83 3.58 $ 1,324 Granted 600,000 3.22 - Exercised (253,335) 1.31 - Expired (2,035,966) 9.14 - Forfeited (29,167) 5.89 - Outstanding as of December 31, 2021 2,454,700 $ 4.62 4.58 $ 109 Vested and exercisable as of December 31, 2021 1,848,033 $ 5.06 3.17 $ 109 The weighted-average fair value of options per share granted during the years ended December 31, 2021, 2020, and 2019 was $1.65, $2.38 and $1.94, respectively. The total intrinsic value of options exercised during the years ended December 31, 2021, 2020, and 2019, was $0.1million, nil, and $0.2 million, respectively. The total fair value of options vested during the years ended December 31, 2021, 2020 and 2019 was $0.3 million, $1.0 million and $1.6 million, respectively. 253,335 options were exercised during the year ended December 31, 2021, at a weighted average exercise price of $1.31 per share. For these exercises, 237,719 shares of the Company’s common stock were issued. For the remaining 15,616 options, no common shares were issued because the same number of common shares were surrendered due to exercise by attestation The following table summarizes information about stock options outstanding at December 31, 2021: Outstanding Exercisable Range of Exercise Prices Number of Options Weighted Average Remaining Contractual Term (in years) Weighted Average Exercise Price (per share) Number of Options Weighted Average Exercise Price (per share) $0.00 - $6.25 2,154,700 5.12 $ 3.04 1,548,033 $ 2.96 $6.25 -$12.50 - - $ - - $ - $12.50 - $18.75 300,000 0.64 $ 15.92 300,000 $ 15.92 2,454,700 4.58 $ 4.62 1,848,033 $ 5.06 The assumptions used to determine the value of stock-based awards under the Black-Scholes method are summarized below: For the year ended December 31, 2021 2020 2019 Risk-free interest rate 0.55 % 0.23 % 2.20 % Dividend yield 0.26 % 0.97 % 0.53 % Expected volatility 64.71 % 66.03 % 62.76 % Expected life in years 6 6 5 Restricted and Deferred Stock Units A summary of RSU and DSU activity under the Incentive Plan for the years ended December 31, 2021 and 2020 is presented below: Shares Aggregate Intrinsic Value (thousands) Weighted Average Remaining Contractual Term (in years) Nonvested as of December 31, 2019 401,235 $ 2,223 8.00 Granted 203,181 - Vested (238,062) - Expired - - Forfeited (16,489) - Nonvested as of December 31, 2020 349,865 $ 1,017 4.87 Granted 134,574 - Vested (207,222) - Expired - - Forfeited (171,418) - Nonvested as of December 31, 2021 105,799 $ 165 2.69 2,614 RSUs and 131,960 DSUs were granted during the year ended December 31, 2021. The weighted-average fair value per share of RSUs granted during the years ended December 31, 2021, 2020, and 2019 was, $2.56, $3.78 and $4.83, respectively. The weighted-average fair value per share of DSUs granted during the years ended December 31, 2021 was $1.63. The total intrinsic value of RSUs vested during the years ended December 31, 2021, 2020, and 2019 was $0.1 million, $0.8 million, and $0.4 million, respectively. No DSUs were converted to common shares. |
Zinc Zero Cost Collar
Zinc Zero Cost Collar | 12 Months Ended |
Dec. 31, 2021 | |
Zinc Zero Cost Collar | |
Zinc Zero Cost Collar | 17. Zinc Zero Cost Collar During the years ended December 31, 2021, 2020 and 2019, the realized and unrealized losses related to the Company’s Zinc Zero Cost Collar are the following: For the year ended December 31, 2021 2020 2019 (in thousands) Unrealized loss on zinc zero cost collar (1) 1,844 - - Realized loss on zinc zero cost collar (1) 1,156 - - Total $ 3,000 $ - $ - (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. Effective May 18, 2021, GRC entered into Trading Agreement with Auramet International LLC that govern nonexchange traded, over-the-counter, spot, forward and option transactions on both a deliverable and non-deliverable basis involving various metals and currencies. In 2021, the Company had a realized loss of $1.2 million and an unrealized loss of $1.8 million related to the program. Please see Note 14 |
Other (Income) Expense, Net
Other (Income) Expense, Net | 12 Months Ended |
Dec. 31, 2021 | |
Other (Income) Expense, Net | |
Other (Income) Expense, Net | 18. Other (Income) Expense, Net During the years ended December 31, 2021, 2020 and 2019, other expense, net consisted of the following: For the year ended December 31, 2021 2020 2019 (in thousands) Unrealized currency exchange (gain) loss (1) $ 493 $ 105 $ (19) Realized currency exchange loss (gain) (111) (17) 252 Realized and unrealized loss (gain) from gold and silver rounds, net (1) 55 (1,173) (671) Loss on disposal of fixed assets 26 3 12 (Decrease) increase in reserve for inventory - (148) 885 Employee benefit obligation 947 - - Other (income) expense (390) 42 5 Total $ 1,020 $ (1,188) $ 464 (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. |
Net Income per Common Share
Net Income per Common Share | 12 Months Ended |
Dec. 31, 2021 | |
Net Income per Common Share | |
Net Income per Common Share | 19. Net Income per Common Share Basic income per common share is calculated based on the weighted average number of shares of common stock outstanding for the period. Diluted income per common share is calculated based on the assumption that stock options outstanding, which have an exercise price less than the average market price of the Company’s common stock during the period, would have been exercised on the later of the beginning of the period or the date granted and that the funds obtained from the exercise were used to purchase common shares at the average market price during the period. All the Company’s restricted stock units are considered to be dilutive. The effect of the Company’s dilutive securities is calculated using the treasury stock method and only those instruments that result in a reduction in net income per common share are included in the calculation. Options to purchase 2.2 million, 4.2 million, and 3.6 million shares of common stock at weighted average exercise prices of $10.69, $8.95, and $10.44 were outstanding as of December 31, 2021, 2020, and 2019, respectively, but were not included in the computation of diluted weighted average common shares outstanding, as the exercise price of the options exceeded the average price of the Company’s common stock during those periods, and therefore were anti-dilutive. Basic and diluted net income per common share is calculated as follows: For the year ended December 31, 2021 2020 2019 Numerator: Net income (loss) from continuing operations 8,028 (6,331) 5,532 Net income from discontinued operations - 10,690 300 Net income (in thousands) $ 8,028 $ 4,359 $ 5,832 Denominator: Basic weighted average shares of common stock outstanding 75,301,253 69,902,708 63,681,156 Dilutive effect of share-based awards 307,374 783,535 351,834 Diluted weighted average common shares outstanding 75,608,627 70,686,243 64,032,990 Basic and diluted net income (loss) per common share: Continuing operations 0.11 (0.09) 0.09 Discontinued operations - 0.15 - Basic and diluted net income per common share $ 0.11 $ 0.06 $ 0.09 |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Measurement | |
Fair Value Measurement | 20. 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 and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The following tables set forth certain of the Company’s assets and liabilities measured at fair value by level within the fair value hierarchy as of December 31, 2021 and 2020: As of As of December 31, December 31, Input Hierarchy Level 2021 2020 (in thousands) Cash and cash equivalents $ 33,712 $ 25,405 Level 1 Gold and silver rounds $ 589 $ 671 Level 1 Accounts receivable, net $ 8,672 $ 4,226 Level 2 Derivative liability - zinc zero cost collar $ (1,844) $ - Level 2 The following methods and assumptions were used to estimate the fair value of each class of financial instrument: Cash and cash equivalents & Gold and silver rounds Accounts receivable, net Note 14 Derivative liability - zinc zero cost collar: Gains and losses related to changes in the fair value of these financial instruments were included in the Company’s Consolidated Statements of Operations as shown in the following: For the year ended December 31, Statements of Operations Classification 2021 2020 2019 Note Realized and unrealized derivative gain (loss), net 16 $ 1,002 $ (47) $ 1,714 Sales, net Realized and unrealized gold and silver rounds (loss) gain 18 $ (55) $ 1,173 $ 663 Other expense, net Realized loss on zinc zero cost collar 18 $ (1,156) $ - $ - Realized and unrealized loss on zinc zero cost collar Unrealized loss on zinc zero cost collar 18 $ (1,844) $ - $ - Realized and unrealized loss on zinc zero cost collar Realized/Unrealized Derivatives, net The following tables summarize the Company’s realized/unrealized derivatives, net (in thousands) Gold Silver Copper Lead Zinc Total For the year ended December 31, 2021 Realized (loss) gain $ (47) $ (44) $ 73 $ 163 $ 632 $ 777 Unrealized (loss) gain - (159) 6 (2) 380 225 Total realized/unrealized derivatives, net $ (47) $ (203) $ 79 $ 161 $ 1,012 $ 1,002 Gold Silver Copper Lead Zinc Total For the year ended December 31, 2020 Realized gain (loss) $ 623 $ 344 $ 35 $ (143) $ (722) $ 137 Unrealized (loss) gain (237) (244) (15) 59 253 (184) Total realized/unrealized derivatives, net $ 386 $ 100 $ 20 $ (84) $ (469) $ (47) Gold Silver Copper Lead Zinc Total For the year ended December 31, 2019 Realized gain (loss) $ 318 $ 167 $ 17 $ (44) $ 965 $ 1,423 Unrealized gain (loss) 117 208 114 (64) (84) 291 Total realized/unrealized derivatives, net $ 435 $ 375 $ 131 $ (108) $ 881 $ 1,714 For the zinc zero cost collar, when the prior month LME average zinc price is greater than the call price, positions settling in the period are recorded as a realized gain or loss, and unsettled positions are recorded as an unrealized gain or loss. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2021 | |
Discontinued Operations | |
Discontinued Operations | 21. Discontinued Operations As described in Note 1, 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 consolidated financial statements. Results of discontinued operations for the years ended December 31, 2021, 2020, and 2019 are as follows ( in thousands For the year ended December 31, 2021 2020 2019 Sales, net $ - $ 53,967 $ 15,065 Mine cost of sales - 37,784 14,582 Mine gross profit - 16,183 483 Exploration expenses - 2,649 932 Other expense, net - 838 168 Profit (loss) before income taxes - 12,696 (617) Income tax expense (benefit) - 2,006 (917) Net income from discontinued operations $ - $ 10,690 $ 300 Selected Statements of Cash Flows presenting depreciation and amortization, capital expenditures, sale proceeds and significant operating noncash items of FGC were as follows: For the year ended December 31, 2021 2020 2019 Cash flows from discontinued operating activities: Net income $ - $ 10,690 $ 300 Adjustments to reconcile net income to net cash from discontinued operating activities: Deferred income benefit - (224) (917) Depreciation and amortization - 10,377 4,022 Other operating adjustments - 48 17 Changes in operating assets and liabilities: Accounts receivable - (145) - Inventories - (2,300) (6,490) Prepaid expenses and other current assets - (1,670) 346 Other non-current assets - (2,085) (3,600) Accounts payable and other accrued liabilities - (1,707) 3,617 Mining royalty and income taxes payable, net - 1,200 - Net cash provided by (used in) discontinued operating activities - 14,184 (2,705) Cash flows from discontinued investing activities: Capital expenditures - (6,488) (22,538) Net cash used in discontinued investing activities - (6,488) (22,538) Cash flows from discontinued financing activities: Other financing activities - (452) (2,019) Net cash provided used in discontinued financing activities - (452) (2,019) Supplemental Cash Flow Information Discontinued Operations Non-cash investing activities: Change in capital expenditures in accounts payable $ - $ (1,544) $ (1,174) Change in estimate for asset retirement costs $ - $ 1,159 $ 1,726 Effective December 31, 2020, in connection with the spin-off, the Company entered into an agreement with FGC that governs the relationship of the parties following the spin-off. The Management Services Agreement provided that the Company and its subsidiaries provide services to FGC to assist in the transition of FGC as a separate company. The agreed upon charges for services rendered were based on market rates that align with the rates that an unaffiliated service provider would charge for similar services. Due to the successful development of FGC’s corporate, administrative, and technical capabilities, the Company terminated the Agreement effective on May 21, 2021. |
Supplementary Cash Flow Informa
Supplementary Cash Flow Information | 12 Months Ended |
Dec. 31, 2021 | |
Supplementary Cash Flow Information | |
Supplementary Cash Flow Information | 22. Supplementary Cash Flow Information During the years ended December 31, 2021, 2020, and 2019, other operating adjustments and write-downs within the net cash provided by operations on the Consolidated Statements of Cash Flows consisted of the following: For the year ended December 31, 2021 2020 2019 (in thousands) Unrealized loss (gain) on gold and silver rounds $ 53 $ (170) $ (671) Realized loss (gain) on gold and silver rounds 2 (1,003) - Unrealized foreign currency exchange loss (gain) 493 105 (19) Loss on disposition of fixed assets 37 3 12 Increase (decrease) in reserve for inventory 175 (148) 885 Stock-based compensation related to restructuring - 809 - Unrealized loss on zinc zero cost collar 1,844 - - Other 105 - 98 Total other operating adjustments $ 2,709 $ (404) $ 305 |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting | |
Segment Reporting | 23. Segment Reporting As of December 31, 2021, the Company has organized its operations into three geographic regions. The geographic regions include Oaxaca, Mexico, Michigan, U.S.A. and Corporate and Other. Oaxaca, Mexico represents the Company’s only production stage property. Michigan, U.S.A. is an advanced exploration stage property. Intercompany revenue and expense amounts have been eliminated within each segment in order to report on the basis that management uses internally for evaluating segment performance. The Company’s business activities that are not considered production stage or advanced exploration stage properties are included in Corporate and Other. The following table shows selected information from the Consolidated Balance Sheets relating to the Company’s segments (in thousands): Oaxaca, Mexico Michigan, USA (1) Corporate and Other Consolidated As of December 31, 2021 Total current assets $ 50,057 $ 5,528 $ 3,330 $ 58,915 Total non-current assets 66,756 90,018 73 156,847 Total assets $ 116,813 $ 95,546 $ 3,404 $ 215,762 Total current liabilities 25,833 2,459 1,367 29,659 Total non-current liabilities 1,436 63,438 479 65,353 Total shareholders' equity 89,544 29,649 1,557 120,750 Total liabilities and shareholders' equity $ 116,813 $ 95,546 $ 3,403 $ 215,762 As of December 31, 2020 Total current assets $ 34,744 $ - $ 8,129 $ 42,873 Total non-current assets 62,695 - 166 62,861 Total assets $ 97,439 $ - $ 8,295 $ 105,734 Total current liabilities 11,007 - 1,078 12,085 Total non-current liabilities 3,098 - 13 3,111 Total shareholders' equity 83,334 - 7,204 90,538 Total liabilities and shareholders' equity $ 97,439 $ - $ 8,295 $ 105,734 (1) Michigan, USA was acquired on December 10, 2021 and therefore there are no December 31, 2020 balances. The following table shows selected information from the Consolidated Statements of Operations relating to the Company’s segments (in thousands): Oaxaca, Mexico Michigan, USA (1) Corporate and Other Consolidated For the year ended December 31, 2021 Sales, net $ 125,196 $ - $ - $ 125,196 Total mine cost of sales 88,449 - - 88,449 Exploration expense 4,813 55 18 4,886 Total other costs and expenses (without exploration) 3,995 1,167 9,056 14,218 Provision for income taxes (benefit) 8,518 305 792 9,615 Net income (loss) from continuing operations $ 19,421 $ (1,527) $ (9,866) $ 8,028 For the year ended December 31, 2020 Sales, net $ 90,692 $ - $ - $ 90,692 Total mine cost of sales 78,205 - - 78,205 Exploration expense 2,418 - 67 2,485 Total other costs and expenses (without exploration) 48 - 10,712 10,760 Provision for income taxes (benefit) 2,331 - 3,242 5,573 Net income (loss) from continuing operations $ 7,690 $ - $ (14,021) $ (6,331) For the year ended December 31, 2019 Sales, net $ 120,301 $ - $ - $ 120,301 Total mine cost of sales 91,669 - - 91,669 Exploration expense 2,614 - 106 2,720 Total other costs and expenses (without exploration) 1,101 - 9,312 10,413 Provision for income taxes (benefit) 7,612 - 2,355 9,967 Net income (loss) from continuing operations $ 17,305 $ - $ (11,773) $ 5,532 (1) Michigan, USA was acquired on December 10, 2021 and therefore there is no information for the years ended December 31, 2020 and 2019. |
COVID-19 Pandemic
COVID-19 Pandemic | 12 Months Ended |
Dec. 31, 2021 | |
COVID-19 Pandemic | |
COVID-19 Pandemic | 24. COVID-19 The Company continues to protect the health and safety of our employees, contractors, and communities, by taking precautionary measures, including specialized training, social distancing, screening workers before they enter facilities, a work from home mandate where possible, and close monitoring of national and regional COVID-19 impacts and governmental guidelines. Since our non-mining workforce is able to work remotely with the benefit of technology, we are able to maintain our operations and internal controls over financial reporting and disclosures. On August 18, 2021, we announced the temporary suspension of activities at the Don David Gold Mine in response to a spike in COVID-19 cases at our mine and surrounding communities. The suspension lasted twelve days and by September 7, 2021, we had significantly ramped back up operations under further enhanced COVID-19 protocols. The Company incurred COVID-19 specific costs of $0.2 million in 2021 for activities such as additional health and safety procedures, increased transportation, and community contributions. We are working with local authorities, to improve the availability of vaccines to our employees and host communities. As of the date of the issuance of these 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). 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 | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events | |
Subsequent Events | 25. Subsequent Events None. |
Nature of Operations and Summ_2
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Nature of Operations and Summary of Significant Accounting Policies | |
Nature of Operations | Nature of Operations Gold Resource Corporation (the “Company”) was organized under the laws of the State of Colorado on August 24, 1998. The Company is a producer of doré containing gold and silver and metal concentrates that contain gold, silver, copper, lead, and zinc in Oaxaca, Mexico. |
Acquisition | Acquisition On December 10, 2021, the Company completed the acquisition of all the issued and outstanding common shares of Aquila Resources Inc. Aquila’s principal asset is its 100% interest in the Back Forty Project located in Menominee County, Michigan, USA. The Back Forty Project has a polymetallic (gold, silver, copper, silver, lead, and zinc) Volcanogenic Massive Sulfide deposit. The Back Forty Project controls surface and mineral rights through ownership, leases with the State of Michigan, and royalties with private parties. The Company considered the appropriate accounting treatment with regards to the Financial Accounting Standards Board’s Accounting Standards Codification (“ASC”) 805 Business Combinations and determined it was appropriate to account for this transaction as an asset acquisition. Please see Note 2 Asset Acquisition The Company considered the appropriate accounting treatment with regards to the Financial Accounting Standards Board’s ASC 805 Business Combinations for all material merger and acquisition transactions as they occur. The facts and circumstances of each transaction are evaluated to determine the appropriate accounting. Please see Note 2 |
Spin-Off | Spin-Off On December 31, 2020, The Company completed the spin-off of its wholly-owned subsidiary, Fortitude Gold Corporation and its subsidiaries (“FGC” or “Nevada Mining Unit”), into a separate, public company Note 21 The spin-off was affected by the distribution of all of the outstanding shares of FGC common stock to the Company’s shareholders (the “Distribution”). The Company’s shareholders of record as of the close of business on December 28, 2020 (the “Record Date”) received one share of FGC common stock for every 3.5 |
Basis of Presentation | Basis of Presentation The consolidated financial statements included herein are expressed in United States dollars and conform to U.S. GAAP. The consolidated financial statements include the accounts of the Company, its Mexican subsidiary, Don David Gold Mexico S.A. de C.V., and its newly acquired Aquila subsidiaries (See Exhibit 21.1 for material subsidiaries). Intercompany accounts and transactions have been eliminated in consolidation. |
Discontinued Operations | Discontinued Operations The Company presents discontinued operations when there is a disposal of a component group or a group of components that in its judgment represents a strategic shift that will have a major effect on its operations and financial results. The Company aggregates the results of operations for discontinued operations into a single line item in the Consolidated Statements of Operations for all periods presented. General corporate overhead is not allocated to discontinued operations. See Note 20 |
Segment Reporting | Segment Reporting The Company has organized its operations into three geographic regions. The geographic regions include Oaxaca, Mexico, Michigan, U.S.A. and Corporate and Other. Oaxaca, Mexico represents the Company’s only production stage property. Michigan, U.S.A. is an advanced exploration stage property. The Company’s business activities that are not considered production stage or advanced exploration stage properties are included in Corporate and Other . |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. The more significant areas requiring the use of management estimates and assumptions relate to Mineral Resources and Mineral Reserves that are the basis for future cash flow estimates utilized in impairment calculations and units-of-production depreciation calculations; asset and liability valuation related to acquisitions; accounting for asset acquisitions; future metal prices, especially as it relates to zinc zero cost collar; environmental remediation, reclamation and closure obligations; estimates of recoverable gold and other minerals in stockpiles; write-downs of inventory, stockpiles to net realizable value; valuation allowances for deferred tax assets and liabilities; valuation of contingent considerations and gold and silver stream agreements, provisional amounts related to income tax effects of newly enacted tax laws; and stock-based compensation. Management routinely makes judgments and estimates about the effects of matters that are inherently uncertain and bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances. Actual results could differ from these estimates. |
Reclassifications | Reclassifications Certain amounts presented in prior periods have been reclassified to conform to the current period presentation. Starting 2020, the Company showed Stock-based compensation as a separate line item in the Consolidated Statements of Operations. In 2019, Stock-based compensation was included with General and administrative expenses. The reclassifications had no material effect on the Company’s results of operations or financial condition. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of all cash balances and are highly liquid. Cash held in Mexican Pesos or Canadian Dollars is converted to U.S. Dollars at the closing exchange rate on December 31, 2021. |
Gold and Silver Rounds | Gold and Silver Rounds The Company sponsored a physical dividend program which was concluded in 2021. Historically, the Company purchased gold and silver rounds on the open market in order to diversify its treasury and provide an option for shareholders to convert their dividends into rounds. At December 31, 2021, the Company held gold and silver rounds carried at quoted market value prices based on the daily London P.M. fix as of the balance sheet date. The Company considers rounds a highly liquid investment. |
Accounts Receivable, net | Accounts Receivable, net Accounts receivable consists of trade receivables, which are recorded net of allowance for doubtful accounts, from the sale of doré and metals concentrates, as well an embedded derivative based on mark-to-market adjustments for outstanding provisional invoices based on forward metal prices. Please see Note 14 Note 19 |
Inventories | Inventories The major inventory categories are set forth below: Stockpile Inventories : Concentrate Inventories Doré Inventory: Materials and Supplies Inventories Write-downs of inventory are charged to production costs on the Consolidated Statements of Operations. |
Promissory Note | Promissory Note The promissory note was acquired in the Aquila Transaction. In October 2021, Aquila sold its Wisconsin assets to Green Light Metals in return for a C$4.9 million ($3.9 million) promissory note. Under the promissory note, Green Light Metals is to pay C$0.9 million cash and deliver C$4.0 million in Green Light Metal shares once Green Light Metals goes public. The cash and shares will be delivered upon completion of Green Light Metals listing on the TSX and the shares are expected to represent approximately 18% of the total outstanding shares of Green Light Metals. Upon maturity on December 31, 2022, the shares of Green Light Metals will be recorded at fair value as available-for-sale securities. Due to the short maturity of the promissory note, the carrying amount approximates the fair value, and likewise, no interest and collateral is required. |
Property, Plant and Mine Development | Property, Plant and Mine Development Land and Mineral Interests : Mine Development : Drilling costs incurred during the production phase for operational ore control are recorded as mine development and amortized using UOP. All other drilling and related costs are expensed as incurred. Mine development costs are amortized using the UOP method based on estimated recoverable ounces in Mineral Reserves. Property and Equipment Construction in Progress Depreciation and Amortization Range of Lives Asset retirement costs UOP Furniture, computer and office equipment 3 to 10 years Light vehicles and other mobile equipment 4 years Machinery and equipment UOP to 4 years Mill facilities and related infrastructure UOP Mine development and mineral interests UOP |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company evaluates its long-lived assets for impairment when events or changes in circumstances indicate that the related carrying amounts may not be recoverable. Asset impairment is considered to exist if the total estimated future cash flows on an undiscounted basis are less than the carrying amount of the asset. If an impairment is indicated, a determination is made whether an impairment has occurred. Impairment losses are measured either 1) as the excess of carrying value over the total discounted estimated future cash flows, or 2) by applying an expected fair value technique in the absence of an observable market price; losses are charged to expense on the Company’s Consolidated Statements of Operations. In estimating future cash flows, assets are grouped at the lowest level for which there are identifiable cash flows that are largely independent of future cash flows from other asset groups. Existing Mineral Resources and Mineral Reserves are included when estimating the fair value in determining whether the assets are impaired. The Company’s estimates of future cash flows are based on numerous assumptions including expected gold and other commodity prices, production levels, capital requirements and estimated salvage values. It is possible that actual future cash flows will be significantly different from the estimates, as actual future quantities of recoverable minerals, gold and other commodity prices, production levels and costs, and capital requirements are each subject to significant risks and uncertainties. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The recorded amounts of cash and cash equivalents, gold and silver rounds, receivables from provisional concentrate sales and accounts payable approximate fair value because of the short maturity of those instruments. The recorded amounts for the zinc zero cost collar are based on the London Metal Exchange forward underlying price over a period from the trade date to the payment date. |
Treasury Stock | Treasury Stock Treasury stock represents shares of the Company’s common stock which have been repurchased on the open market at the prevailing market price at the time of purchase and have not been cancelled. Treasury stock is shown at cost as a separate component of equity. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue from doré and concentrate sales. Doré sales Concentrate sales |
Production Costs | Production Costs Production costs include labor and benefits, royalties, concentrate and doré shipping costs, mining costs, fuel and lubricants, legal and professional fees related to mine operations, stock-based compensation attributable to mine workers, materials and supplies, repairs and maintenance, explosives, site support, housing and food, insurance, reagents, travel, medical services, security equipment, office rent, tools and other costs that support mining operations. |
Exploration Costs | Exploration Costs Exploration costs are charged to expense as incurred. Costs to identify new Mineral Resources and to evaluate potential Mineral Resources are considered exploration costs. Exploration activities conducted within the defined Mineral Resources are capitalized. |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for stock-based compensation under the fair value recognition and measurement provisions of U.S. GAAP. Those provisions require all stock-based payments, including grants of stock options, RSUs, and DSUs to be measured based on the grant date fair value of the awards, with the resulting expense generally recognized on a straight-line basis in the Consolidated Statements of Operations over the period during which services are performed in exchange for the award. The majority of the awards are earned over a service period of three years. DSUs are earned immediately at grant and expected to be paid out in cash in the future. DSUs are considered liability instruments and marked-to-market each reporting period. The Company's estimates may be impacted by certain variables including, but not limited to, stock price volatility, employee stock option exercise behaviors, additional stock option grants, and estimates of forfeitures. |
Reclamation and Remediation Costs | Reclamation and Remediation Costs Reclamation costs are allocated to expense over the life of the related assets and are periodically adjusted to reflect changes in the estimated present value resulting from the passage of time and revisions to the estimates of either the timing or amount of the reclamation and remediation costs. Reclamation obligations are based in part on when the spending for an existing environmental disturbance will occur. The Company reviews, at least on an annual basis, the reclamation obligation. Prior to 2014, the Company had been recognizing only reclamation and remediation obligations and all associated asset retirement costs were written off as the Company had not been reporting its proven and probable Mineral Reserves for its Don David Gold Mine. In 2014, the Company became a production stage company and therefore capitalized asset retirement costs along with the asset retirement obligation. Please see Note 11 Accounting for reclamation and remediation obligations requires management to make estimates unique to each mining operation of the future costs expected to be incurred to complete the reclamation and remediation work required to comply with existing laws and regulations. Actual costs incurred in future periods could differ from amounts estimated. Additionally, future changes to environmental laws and regulations could increase the extent of reclamation and remediation work required. Any such increases in future costs could materially impact the amounts charged to operations for reclamation and remediation. |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Accumulated other comprehensive loss is presented in the consolidated statements of changes in shareholders’ equity. Accumulated other comprehensive loss is composed of foreign currency translation adjustment effects related to the historical adjustment when the functional currency was the Mexican peso for our Mexico subsidiary. This loss will remain on our Consolidated Balance Sheets until the sale or dissolution of our Mexico subsidiary. |
Income and Mining Royalty Taxes | Income and Mining Royalty Taxes Income and Mining Royalty Taxes are computed using the asset and liability method. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial and tax reporting purposes and the effect of net operating loss and foreign tax credit carryforwards using enacted tax rates in effect in the years in which the differences are expected to reverse. Deferred tax assets are evaluated to determine if it is more likely than not that they will be realized. Please see Note 6 |
Net Income Per Share | Net Income Per Share Basic earnings per share is calculated based on the weighted average number of common shares outstanding for the period. Diluted income per share reflects the dilution that could occur if potentially dilutive securities, as determined using the treasury stock method, are converted into common stock. Potentially dilutive securities are excluded from the calculation when their inclusion would be anti-dilutive, such as periods when a net loss is reported or when the exercise price of the instrument exceeds the average fair market value of the underlying common stock. |
Foreign Currency | Foreign Currency The functional currency for all of the Company’s subsidiaries is the United States dollar (“U.S. dollar”). |
Concentration of Credit Risk | Concentration of Credit Risk The Company has considered and assessed the credit risk resulting from its concentrate sales and doré sales arrangements with its customers. In the event that the Company’s relationships with its customers are interrupted for any reason, the Company believes that it would be able to locate another entity to purchase its metals concentrates and doré bars; however, any interruption could temporarily disrupt the Company’s sale of its products and materially adversely affect operating results. The Company’s Arista and Alta Gracia mines, which are located in the State of Oaxaca, Mexico, accounted for 100%of the Company’s total net sales from continuing operations for the years ended December 31, 2021, 2020 and 2019, respectively. Some of the Company’s operating cash balances are maintained in accounts that currently exceed federally insured limits. The Company believes that the financial strength of the depositing institutions mitigates the underlying risk of loss. To date, these concentrations of credit risk have not had a significant impact on the Company’s financial position or results of operations. |
Nature of Operations and Summ_3
Nature of Operations and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Nature of Operations and Summary of Significant Accounting Policies | |
Estimated Economic Lives | Range of Lives Asset retirement costs UOP Furniture, computer and office equipment 3 to 10 years Light vehicles and other mobile equipment 4 years Machinery and equipment UOP to 4 years Mill facilities and related infrastructure UOP Mine development and mineral interests UOP |
Aquila Acquisition (Tables)
Aquila Acquisition (Tables) | 1 Months Ended |
Oct. 31, 2021 | |
Aquila Acquisition | |
Schedule of Preliminary Allocation of Purchase Price | AQUILA ACQUISITION As of December 10, 2021 Consideration: Cash Consideration, including transaction costs $ 4,571 Stock Consideration (13,714,630 shares at $1.79 per share) 24,549 Total Consideration: $ 29,120 Value of net assets acquired: Assets: Cash and cash equivalents $ 2,208 Accounts receivable 142 Promissory Note 3,885 Prepaid expenses 29 Security deposits 27 Property, plant and mine development 89,579 Total Assets 95,870 Liabilities: Accounts payable and accrued liabilities 3,314 Leases payable - current 127 Exploration reclamation liability 611 Gold and silver stream agreements 42,421 Contingent consideration 4,603 Leases payable - long term 205 Deferred tax liability 15,469 Total Liabilities 66,750 Total net assets: $ 29,120 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue | |
Revenue from the sale of dore and concentrate | For the year ended December 31, 2021 2020 2019 (in thousands) Doré sales, net Gold $ 8,120 $ 8,719 $ 6,763 Silver 678 2,774 2,439 Less: Refining charges (136) (233) (171) Total doré sales, net 8,662 11,260 9,031 Concentrate sales Gold 32,593 22,145 27,184 Silver 26,095 20,391 21,347 Copper 13,495 9,387 9,930 Lead 13,442 12,012 16,116 Zinc 41,256 36,451 48,804 Less: Treatment and refining charges (11,349) (20,907) (13,825) Total concentrate sales, net 115,532 79,479 109,556 Realized gain embedded derivative, net 777 138 1,423 Unrealized gain (loss) - embedded derivative, net 225 (185) 291 Total sales, net $ 125,196 $ 90,692 $ 120,301 |
Gold and Silver Rounds (Tables)
Gold and Silver Rounds (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Gold and Silver Rounds | |
Schedule of Company's Holdings | As of December 31, 2021 As of December 31, 2020 Ounces Per Ounce Amount Ounces Per Ounce Amount (in thousands) (in thousands) Gold 176 $ 1,820 $ 320 189 $ 1,888 $ 357 Silver 11,655 $ 23.09 269 11,842 $ 26.49 314 Total holdings $ 589 $ 671 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventories | |
Summary of Inventories | As of As of December 31, December 31, 2021 2020 (in thousands) Stockpiles - underground mine $ - $ 648 Stockpiles - open pit mine - 41 Concentrates 2,048 1,919 Doré, net (1) 452 459 Subtotal - product inventories 2,500 3,067 Materials and supplies (2) 7,861 6,928 Total $ 10,361 $ 9,995 (1) Net of reserve of nil and $368 as of December 31, 2021 and 2020, respectively. (2) Net of reserve for obsolescence of $384 and $209 as of December 31, 2021 and 2020, respectively. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Taxes | |
Components of net income before income taxes and extraordinary item | Years Ended December 31, 2021 2020 2019 (in thousands) U.S. Operations $ (6,369) $ (7,196) $ (6,338) Foreign Operations 24,012 6,438 21,837 Total income before income taxes $ 17,643 $ (758) $ 15,499 |
Calculation of Income Taxes Provision | Years ended December 31, 2021 2020 2019 (in thousands) Current taxes: U.S. Federal $ - $ - $ - U.S. State 305 - - Foreign 11,426 3,294 6,210 Total current taxes $ 11,731 $ 3,294 $ 6,210 Deferred taxes: U.S. Federal $ - $ 2,999 $ 1,881 U.S. State - - - Foreign (2,116) (720) 1,876 Total deferred taxes $ (2,116) $ 2,279 $ 3,757 Total income tax provision $ 9,615 $ 5,573 $ 9,967 |
Differences between provision for income taxes and income tax determined | For the year ended December 31, 2021 2020 2019 (in thousands) Tax at statutory rates $ 3,705 $ (159) $ 3,255 Foreign rate differential 2,095 558 1,969 GILTI Inclusion - (886) 2,173 Changes in deferred tax assets (1,189) 3,919 277 Mexico mining tax 1,590 280 1,126 Foreign exchange 535 866 255 Stock option expiration 2,471 449 361 Mexico withholding tax 679 192 374 Deduction for inflation in Mexico (981) (550) (338) U.S. State income tax 585 127 139 Other 125 777 376 Tax provision $ 9,615 $ 5,573 $ 9,967 |
Tax Effects of Temporary Differences That Give Rise to Significant Portions of Deferred Tax Assets | As of December 31, 2021 2020 (in thousands) Non-current deferred tax assets: Tax loss carryforward $ 29,496 $ 2,190 Property and equipment 12,092 10,355 Share-based compensation 1,068 4,018 Foreign tax credits 4,089 4,089 Inventory 142 79 Foreign mining tax 793 199 Accounts payable 2,708 912 Employee profit sharing obligation 566 - Zinc derivatives 608 - Other 362 377 Total deferred tax assets 51,924 22,219 Valuation allowance (36,933) (10,592) Deferred tax assets after valuation allowance $ 14,991 $ 11,627 Deferred tax liability – Property, plant and mine development (28,117) (11,318) Net deferred tax (liability) asset $ (13,126) $ 309 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Prepaid Expenses And Other Current Assets | |
Schedule of prepaid and other assets | As of As of December 31, December 31, 2021 2020 (in thousands) Advances to suppliers $ 188 $ 374 Prepaid insurance 1,222 709 IVA taxes receivable, net 20 846 Other current assets 266 647 Total $ 1,696 $ 2,576 |
Property, Plant and Mine Deve_2
Property, Plant and Mine Development, net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Mine Development, net | |
Schedule of property, plant and mine development | As of As of December 31, December 31, 2021 2020 (in thousands) Asset retirement costs $ 1,065 $ 1,064 Construction-in-progress (1) 15,854 7,158 Furniture and office equipment 1,685 1,839 Land 9,230 230 Mineral interest 79,964 - Light vehicles and other mobile equipment 2,224 2,192 Machinery and equipment 33,213 31,227 Mill facilities and infrastructure 24,973 24,407 Mine Development 92,138 83,859 Software and licenses 1,592 1,619 Subtotal (2) 261,938 153,595 Accumulated depreciation and amortization (105,167) (91,084) Total $ 156,771 $ 62,511 (1) Primarily related to the dry stack filtration plant. (2) Includes capital expenditures in accounts payable and accruals of $1.7 million and $1.0 at December 31, 2021 and 2020, respectively. |
Accrued Expenses and Other Li_2
Accrued Expenses and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accrued Expenses and Other Liabilities | |
Schedule of Accrued Expenses and Other Current Liabilities | As of As of December 31, December 31, 2021 2020 (in thousands) Accrued royalty payments 1,743 1,796 Dividends payable - 247 Zinc derivatives 1,844 - Employee profit sharing obligation 1,888 - Other payables 1,100 232 Total accrued expenses and other current liabilities $ 6,575 $ 2,275 Accrued non-current labor obligation 920 - Deferred stock unit compensation liability 206 - Other long-term liabilities 826 13 Total other non-current liabilities $ 1,952 $ 13 |
Gold and Silver Stream Agreem_2
Gold and Silver Stream Agreements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Gold and Silver Stream Agreements | |
Schedule of liabilities related to the deferred revenues | As of As of December 31, December 31, 2021 2019 (in thousands) Liability related to the Gold Stream Agreement $ 20,364 $ - Liability related to the Silver Stream Agreement 22,196 - Total liability $ 42,560 $ - |
Reclamation and Remediation (Ta
Reclamation and Remediation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Reclamation and Remediation | |
Changes in Reclamation and Remediation | 2021 2020 (in thousands) Reclamation liabilities – balance at beginning of period $ 1,890 $ 2,003 Foreign currency exchange gain (57) (113) Reclamation liabilities – balance at end of period 1,833 1,890 Asset retirement obligation – balance at beginning of period 1,208 1,105 Changes in estimate - 82 Accretion 109 79 Foreign currency exchange gain (38) (58) Asset retirement obligation – balance at end of period 1,279 1,208 Total period end balance $ 3,112 $ 3,098 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Derivatives | |
Summary of unsettled sales contracts | Gold Silver Copper Lead Zinc Total (ounces) (ounces) (tonnes) (tonnes) (tonnes) Under contract 3,014 215,786 275 1,503 4,180 Average forward price (per ounce or tonne) $ 1,803 $ 23.18 $ 9,598 $ 2,311 $ 3,356 Unsettled sales contracts value (in thousands) $ 5,434 $ 5,002 $ 2,639 $ 3,473 $ 14,028 $ 30,576 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Stock-Based Compensation | |
Schedule of Share-based Compensation, Stock Options, Activity | Shares Weighted Average Exercise Price (per share) Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (thousands) Outstanding as of December 31, 2019 4,564,735 $ 8.54 5.09 $ 4,513 Granted 100,000 3.45 - Exercised - - - Expired (486,666) 13.82 - Forfeited (4,901) 6.57 - Outstanding as of December 31, 2020 4,173,168 $ 6.83 3.58 $ 1,324 Granted 600,000 3.22 - Exercised (253,335) 1.31 - Expired (2,035,966) 9.14 - Forfeited (29,167) 5.89 - Outstanding as of December 31, 2021 2,454,700 $ 4.62 4.58 $ 109 Vested and exercisable as of December 31, 2021 1,848,033 $ 5.06 3.17 $ 109 |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range | Outstanding Exercisable Range of Exercise Prices Number of Options Weighted Average Remaining Contractual Term (in years) Weighted Average Exercise Price (per share) Number of Options Weighted Average Exercise Price (per share) $0.00 - $6.25 2,154,700 5.12 $ 3.04 1,548,033 $ 2.96 $6.25 -$12.50 - - $ - - $ - $12.50 - $18.75 300,000 0.64 $ 15.92 300,000 $ 15.92 2,454,700 4.58 $ 4.62 1,848,033 $ 5.06 |
Schedule of Assumptions Used to Determine the Value of our Stock-based Awards | For the year ended December 31, 2021 2020 2019 Risk-free interest rate 0.55 % 0.23 % 2.20 % Dividend yield 0.26 % 0.97 % 0.53 % Expected volatility 64.71 % 66.03 % 62.76 % Expected life in years 6 6 5 |
Schedule of RSU activity under the Incentive Plan | Shares Aggregate Intrinsic Value (thousands) Weighted Average Remaining Contractual Term (in years) Nonvested as of December 31, 2019 401,235 $ 2,223 8.00 Granted 203,181 - Vested (238,062) - Expired - - Forfeited (16,489) - Nonvested as of December 31, 2020 349,865 $ 1,017 4.87 Granted 134,574 - Vested (207,222) - Expired - - Forfeited (171,418) - Nonvested as of December 31, 2021 105,799 $ 165 2.69 |
Stock-based compensation expense | For the year ended December 31, 2021 2020 2019 (in thousands) Stock options $ 549 $ 1,956 $ 1,458 Restricted stock units 120 1,083 474 Deferred stock units 206 - - Total $ 875 $ 3,039 $ 1,932 |
Zinc Zero Cost Collar (Tables)
Zinc Zero Cost Collar (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Zinc Zero Cost Collar | |
Schedule of realized and unrealized losses related to Zinc Zero Cost Collar | For the year ended December 31, 2021 2020 2019 (in thousands) Unrealized loss on zinc zero cost collar (1) 1,844 - - Realized loss on zinc zero cost collar (1) 1,156 - - Total $ 3,000 $ - $ - (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. |
Other (Income) Expense, Net (Ta
Other (Income) Expense, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other (Income) Expense, Net | |
Schedule of Other (Income) Expense, net | For the year ended December 31, 2021 2020 2019 (in thousands) Unrealized currency exchange (gain) loss (1) $ 493 $ 105 $ (19) Realized currency exchange loss (gain) (111) (17) 252 Realized and unrealized loss (gain) from gold and silver rounds, net (1) 55 (1,173) (671) Loss on disposal of fixed assets 26 3 12 (Decrease) increase in reserve for inventory - (148) 885 Employee benefit obligation 947 - - Other (income) expense (390) 42 5 Total $ 1,020 $ (1,188) $ 464 (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. |
Net Income per Common Share (Ta
Net Income per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Net Income per Common Share | |
Schedule of net income per common share | For the year ended December 31, 2021 2020 2019 Numerator: Net income (loss) from continuing operations 8,028 (6,331) 5,532 Net income from discontinued operations - 10,690 300 Net income (in thousands) $ 8,028 $ 4,359 $ 5,832 Denominator: Basic weighted average shares of common stock outstanding 75,301,253 69,902,708 63,681,156 Dilutive effect of share-based awards 307,374 783,535 351,834 Diluted weighted average common shares outstanding 75,608,627 70,686,243 64,032,990 Basic and diluted net income (loss) per common share: Continuing operations 0.11 (0.09) 0.09 Discontinued operations - 0.15 - Basic and diluted net income per common share $ 0.11 $ 0.06 $ 0.09 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Measurement | |
Assets measured at fair value by level within fair value hierarchy | As of As of December 31, December 31, Input Hierarchy Level 2021 2020 (in thousands) Cash and cash equivalents $ 33,712 $ 25,405 Level 1 Gold and silver rounds $ 589 $ 671 Level 1 Accounts receivable, net $ 8,672 $ 4,226 Level 2 Derivative liability - zinc zero cost collar $ (1,844) $ - Level 2 |
Gains and Losses Related to Changes in Fair Value | For the year ended December 31, Statements of Operations Classification 2021 2020 2019 Note Realized and unrealized derivative gain (loss), net 16 $ 1,002 $ (47) $ 1,714 Sales, net Realized and unrealized gold and silver rounds (loss) gain 18 $ (55) $ 1,173 $ 663 Other expense, net Realized loss on zinc zero cost collar 18 $ (1,156) $ - $ - Realized and unrealized loss on zinc zero cost collar Unrealized loss on zinc zero cost collar 18 $ (1,844) $ - $ - Realized and unrealized loss on zinc zero cost collar |
Realized and Unrealized Gain Losses on Derivatives | The following tables summarize the Company’s realized/unrealized derivatives, net (in thousands) Gold Silver Copper Lead Zinc Total For the year ended December 31, 2021 Realized (loss) gain $ (47) $ (44) $ 73 $ 163 $ 632 $ 777 Unrealized (loss) gain - (159) 6 (2) 380 225 Total realized/unrealized derivatives, net $ (47) $ (203) $ 79 $ 161 $ 1,012 $ 1,002 Gold Silver Copper Lead Zinc Total For the year ended December 31, 2020 Realized gain (loss) $ 623 $ 344 $ 35 $ (143) $ (722) $ 137 Unrealized (loss) gain (237) (244) (15) 59 253 (184) Total realized/unrealized derivatives, net $ 386 $ 100 $ 20 $ (84) $ (469) $ (47) Gold Silver Copper Lead Zinc Total For the year ended December 31, 2019 Realized gain (loss) $ 318 $ 167 $ 17 $ (44) $ 965 $ 1,423 Unrealized gain (loss) 117 208 114 (64) (84) 291 Total realized/unrealized derivatives, net $ 435 $ 375 $ 131 $ (108) $ 881 $ 1,714 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Discontinued Operations | |
Schedule of discontinued operations in company's condensed consolidated financial statements | Results of discontinued operations for the years ended December 31, 2021, 2020, and 2019 are as follows ( in thousands For the year ended December 31, 2021 2020 2019 Sales, net $ - $ 53,967 $ 15,065 Mine cost of sales - 37,784 14,582 Mine gross profit - 16,183 483 Exploration expenses - 2,649 932 Other expense, net - 838 168 Profit (loss) before income taxes - 12,696 (617) Income tax expense (benefit) - 2,006 (917) Net income from discontinued operations $ - $ 10,690 $ 300 Selected Statements of Cash Flows presenting depreciation and amortization, capital expenditures, sale proceeds and significant operating noncash items of FGC were as follows: For the year ended December 31, 2021 2020 2019 Cash flows from discontinued operating activities: Net income $ - $ 10,690 $ 300 Adjustments to reconcile net income to net cash from discontinued operating activities: Deferred income benefit - (224) (917) Depreciation and amortization - 10,377 4,022 Other operating adjustments - 48 17 Changes in operating assets and liabilities: Accounts receivable - (145) - Inventories - (2,300) (6,490) Prepaid expenses and other current assets - (1,670) 346 Other non-current assets - (2,085) (3,600) Accounts payable and other accrued liabilities - (1,707) 3,617 Mining royalty and income taxes payable, net - 1,200 - Net cash provided by (used in) discontinued operating activities - 14,184 (2,705) Cash flows from discontinued investing activities: Capital expenditures - (6,488) (22,538) Net cash used in discontinued investing activities - (6,488) (22,538) Cash flows from discontinued financing activities: Other financing activities - (452) (2,019) Net cash provided used in discontinued financing activities - (452) (2,019) Supplemental Cash Flow Information Discontinued Operations Non-cash investing activities: Change in capital expenditures in accounts payable $ - $ (1,544) $ (1,174) Change in estimate for asset retirement costs $ - $ 1,159 $ 1,726 |
Supplementary Cash Flow Infor_2
Supplementary Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Supplementary Cash Flow Information | |
Schedule of Other Operating Adjustments and Write Downs | For the year ended December 31, 2021 2020 2019 (in thousands) Unrealized loss (gain) on gold and silver rounds $ 53 $ (170) $ (671) Realized loss (gain) on gold and silver rounds 2 (1,003) - Unrealized foreign currency exchange loss (gain) 493 105 (19) Loss on disposition of fixed assets 37 3 12 Increase (decrease) in reserve for inventory 175 (148) 885 Stock-based compensation related to restructuring - 809 - Unrealized loss on zinc zero cost collar 1,844 - - Other 105 - 98 Total other operating adjustments $ 2,709 $ (404) $ 305 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting | |
Schedule of financial information relating to the Company segments | The following table shows selected information from the Consolidated Balance Sheets relating to the Company’s segments (in thousands): Oaxaca, Mexico Michigan, USA (1) Corporate and Other Consolidated As of December 31, 2021 Total current assets $ 50,057 $ 5,528 $ 3,330 $ 58,915 Total non-current assets 66,756 90,018 73 156,847 Total assets $ 116,813 $ 95,546 $ 3,404 $ 215,762 Total current liabilities 25,833 2,459 1,367 29,659 Total non-current liabilities 1,436 63,438 479 65,353 Total shareholders' equity 89,544 29,649 1,557 120,750 Total liabilities and shareholders' equity $ 116,813 $ 95,546 $ 3,403 $ 215,762 As of December 31, 2020 Total current assets $ 34,744 $ - $ 8,129 $ 42,873 Total non-current assets 62,695 - 166 62,861 Total assets $ 97,439 $ - $ 8,295 $ 105,734 Total current liabilities 11,007 - 1,078 12,085 Total non-current liabilities 3,098 - 13 3,111 Total shareholders' equity 83,334 - 7,204 90,538 Total liabilities and shareholders' equity $ 97,439 $ - $ 8,295 $ 105,734 (1) Michigan, USA was acquired on December 10, 2021 and therefore there are no December 31, 2020 balances. |
Schedule of asset balances, excluding investments and intercompany | The following table shows selected information from the Consolidated Statements of Operations relating to the Company’s segments (in thousands): Oaxaca, Mexico Michigan, USA (1) Corporate and Other Consolidated For the year ended December 31, 2021 Sales, net $ 125,196 $ - $ - $ 125,196 Total mine cost of sales 88,449 - - 88,449 Exploration expense 4,813 55 18 4,886 Total other costs and expenses (without exploration) 3,995 1,167 9,056 14,218 Provision for income taxes (benefit) 8,518 305 792 9,615 Net income (loss) from continuing operations $ 19,421 $ (1,527) $ (9,866) $ 8,028 For the year ended December 31, 2020 Sales, net $ 90,692 $ - $ - $ 90,692 Total mine cost of sales 78,205 - - 78,205 Exploration expense 2,418 - 67 2,485 Total other costs and expenses (without exploration) 48 - 10,712 10,760 Provision for income taxes (benefit) 2,331 - 3,242 5,573 Net income (loss) from continuing operations $ 7,690 $ - $ (14,021) $ (6,331) For the year ended December 31, 2019 Sales, net $ 120,301 $ - $ - $ 120,301 Total mine cost of sales 91,669 - - 91,669 Exploration expense 2,614 - 106 2,720 Total other costs and expenses (without exploration) 1,101 - 9,312 10,413 Provision for income taxes (benefit) 7,612 - 2,355 9,967 Net income (loss) from continuing operations $ 17,305 $ - $ (11,773) $ 5,532 (1) Michigan, USA was acquired on December 10, 2021 and therefore there is no information for the years ended December 31, 2020 and 2019. |
Nature of Operations and Summ_4
Nature of Operations and Summary of Significant Accounting Policies (Details) $ in Thousands, $ in Millions | Dec. 10, 2021USD ($) | Oct. 31, 2021CAD ($) | Dec. 31, 2021USD ($)segment | Dec. 31, 2020USD ($) | Dec. 31, 2019 | Oct. 31, 2021USD ($) | Oct. 31, 2021CAD ($) |
Nature Of Operations [Line Items] | |||||||
Stock split conversion ratio | 0.2857 | ||||||
Allowance for doubtful accounts | $ 0 | $ 0 | |||||
Number of geographic regions | segment | 3 | ||||||
Concentrate sale percentage based on provisional sales price | 100.00% | ||||||
Awards earned over period | 3 years | ||||||
Sales Revenue Net | Sales Revenue [Member] | |||||||
Nature Of Operations [Line Items] | |||||||
Concentration risk | 100.00% | 100.00% | 100.00% | ||||
Aquila Resources Inc. | |||||||
Nature Of Operations [Line Items] | |||||||
Percentage of voting equity interests acquired | 100.00% | 100.00% | |||||
Promissory note - cash payment | $ 4,571 | ||||||
Value of shares issuable as a part of consideration | $ 24,549 | ||||||
Aquila Resources Inc. | Green Light Metals | |||||||
Nature Of Operations [Line Items] | |||||||
Promissory notes receivable | $ 3,900 | $ 4.9 | |||||
Promissory note - cash payment | $ 0.9 | ||||||
Value of shares issuable as a part of consideration | $ 4 | ||||||
Percentage of equity interest | 18.00% |
Nature of Operations and Summ_5
Nature of Operations and Summary of Significant Accounting Policies - Estimated Economic Lives (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Furniture, computer and office equipment | Minimum | |
Property Plant And Equipment [Line Items] | |
Useful life | 3 years |
Furniture, computer and office equipment | Maximum | |
Property Plant And Equipment [Line Items] | |
Useful life | 10 years |
Light Vehicles And Other Mobile Equipment | |
Property Plant And Equipment [Line Items] | |
Useful life | 4 years |
Machinery And Equipment | Maximum | |
Property Plant And Equipment [Line Items] | |
Useful life | 4 years |
Aquila Acquisitions (Details)
Aquila Acquisitions (Details) $ / shares in Units, $ in Thousands | Dec. 10, 2021USD ($)$ / sharesshares | Dec. 31, 2021USD ($)shares | Dec. 31, 2020USD ($)shares |
Asset Acquisition [Line Items] | |||
Common Stock Shares Outstanding | shares | 88,338,774 | 74,376,958 | |
Assets: | |||
Cash and cash equivalents | $ 33,712 | $ 25,405 | |
Accounts receivable, net | 8,672 | 4,226 | |
Promissory Note | 3,885 | ||
Prepaid expenses | 1,696 | 2,576 | |
Property, plant and mine development, net | 156,771 | 62,511 | |
Total assets | 215,762 | 105,734 | |
Liabilities: | |||
Exploration reclamation liability | 3,112 | 3,098 | |
Gold and silver stream agreements | 42,560 | ||
Deferred tax liabilities, net | 13,126 | ||
Total liabilities | $ 95,012 | $ 15,196 | |
Aquila Resources Inc. | |||
Asset Acquisition [Line Items] | |||
Exchange ratio of shares received by each holder | 0.0399 | ||
Common Stock Shares Issued | shares | 343,725,063 | ||
Common Stock Shares Outstanding | shares | 343,725,063 | ||
Consideration per share | $ / shares | $ 1.79 | ||
Transaction Costs | $ 4,600 | ||
Consideration: | |||
Cash Consideration, including transaction costs | 4,571 | ||
Stock Consideration (13,714,630 shares at $1.79 per share) | $ 24,549 | ||
Number of shares issued | shares | 13,714,630 | ||
Total Consideration: | $ 29,120 | ||
Assets: | |||
Cash and cash equivalents | 2,208 | ||
Accounts receivable, net | 142 | ||
Promissory Note | 3,885 | ||
Prepaid expenses | 29 | ||
Security deposits | 27 | ||
Property, plant and mine development, net | 89,579 | ||
Total assets | 95,870 | ||
Liabilities: | |||
Accounts payable and accrued liabilities | 3,314 | ||
Leases payable - current | 127 | ||
Exploration reclamation liability | 611 | ||
Gold and silver stream agreements | 42,421 | ||
Contingent consideration | 4,603 | ||
Leases payable - long term | 205 | ||
Deferred tax liabilities, net | 15,469 | ||
Total liabilities | 66,750 | ||
Total net assets: | $ 29,120 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Realized gain embedded derivative, net | $ 777 | $ 138 | $ 1,423 |
Unrealized gain (loss) - embedded derivative, net | 225 | (185) | 291 |
Total sales, net | 125,196 | 90,692 | 120,301 |
Dore | |||
Disaggregation of Revenue [Line Items] | |||
Less: Treatment and refining charges | (136) | (233) | (171) |
Total concentrate sales, net | 8,662 | 11,260 | 9,031 |
Gold Dore | |||
Disaggregation of Revenue [Line Items] | |||
Total concentrate sales, net | 8,120 | 8,719 | 6,763 |
Silver Dore | |||
Disaggregation of Revenue [Line Items] | |||
Total concentrate sales, net | 678 | 2,774 | 2,439 |
Concentrate | |||
Disaggregation of Revenue [Line Items] | |||
Less: Treatment and refining charges | (11,349) | (20,907) | (13,825) |
Total concentrate sales, net | 115,532 | 79,479 | 109,556 |
Gold Concentrate | |||
Disaggregation of Revenue [Line Items] | |||
Total concentrate sales, net | (32,593) | (22,145) | (27,184) |
Silver Concentrate | |||
Disaggregation of Revenue [Line Items] | |||
Total concentrate sales, net | 26,095 | 20,391 | 21,347 |
Copper Concentrate | |||
Disaggregation of Revenue [Line Items] | |||
Total concentrate sales, net | 13,495 | 9,387 | 9,930 |
Lead Concentrate | |||
Disaggregation of Revenue [Line Items] | |||
Total concentrate sales, net | 13,442 | 12,012 | 16,116 |
Zinc Concentrate | |||
Disaggregation of Revenue [Line Items] | |||
Total concentrate sales, net | $ 41,256 | $ 36,451 | $ 48,804 |
Gold and Silver Rounds (Details
Gold and Silver Rounds (Details) | 12 Months Ended | |
Dec. 31, 2021USD ($)oz$ / oz | Dec. 31, 2020USD ($)oz$ / oz | |
Schedule of Investments [Line Items] | ||
Total carrying value | $ 589,000 | $ 671,000 |
Gold | ||
Schedule of Investments [Line Items] | ||
Ounces sold | 1 | 1,641 |
Additional ounces | 12 | |
Ounces | oz | 176 | 189 |
Carrying value per ounce | $ / oz | 1,820 | 1,888 |
Total carrying value | $ 320,000 | $ 357,000 |
Silver | ||
Schedule of Investments [Line Items] | ||
Ounces sold | 39 | 67,560 |
Additional ounces | 148 | |
Ounces | oz | 11,655 | 11,842 |
Carrying value per ounce | $ / oz | 23.09 | 26.49 |
Total carrying value | $ 269,000 | $ 314,000 |
Gold And Silver | ||
Schedule of Investments [Line Items] | ||
Other Income | $ 2,000 | $ 1,000,000 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Stockpiles - underground mine | $ 648 | |
Stockpiles - open pit mine | 41 | |
Concentrates | $ 2,048 | 1,919 |
Dore, net | 452 | 459 |
Subtotal - product inventories | 2,500 | 3,067 |
Materials and supplies | 7,861 | 6,928 |
Total | 10,361 | 9,995 |
Dore | ||
Inventory reserve | 0 | 368 |
Materials and supplies | ||
Inventory reserve | $ 384 | $ 209 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Taxes [Line Items] | |||
Deferred tax liabilities, assets acquisition | $ 13,100 | ||
Withholding tax on dividends | 10.00% | ||
Dividend withholding tax between countries | 5.00% | ||
Dividend Withholding Tax Amount Between Countries | $ 500 | $ 200 | $ 400 |
MITL corporate income tax rate | 30.00% | ||
MITL royalty tax on mining concessions | 7.50% | ||
Royalty fee as percent of gross revenue | 0.50% | ||
Valuation allowance | $ 36,933 | 10,592 | |
Uncertain tax position | 0 | $ 0 | |
Federal | |||
Income Taxes [Line Items] | |||
Operating loss carry-forward | 80,700 | ||
Global Intangible Low Taxed Income [Member] | |||
Income Taxes [Line Items] | |||
Portion of U.S. tax rate | 90.00% | ||
Prior year GILTI tax expense | $ 900 | ||
Between 2023 And 2026 [Member] | Foreign Tax Authority | |||
Income Taxes [Line Items] | |||
Tax credits carryforwards | 4,100 | ||
Between 2022 and 2024 [Member] | Federal | |||
Income Taxes [Line Items] | |||
Operating loss carry-forward | 400 | ||
Between 2027 and 2037 [Member] | Federal | |||
Income Taxes [Line Items] | |||
Operating loss carry-forward | 46,800 | ||
No Expiration [Member] | Federal | |||
Income Taxes [Line Items] | |||
Operating loss carry-forward | 33,900 | ||
MICHIGAN | State and Local | |||
Income Taxes [Line Items] | |||
Operating loss carry-forward | 51,600 | ||
MICHIGAN | Between 2022 and 2027 [Member] | State and Local | |||
Income Taxes [Line Items] | |||
Operating loss carry-forward | 27,200 | ||
MICHIGAN | No Expiration [Member] | State and Local | |||
Income Taxes [Line Items] | |||
Operating loss carry-forward | 24,400 | ||
COLORADO | State and Local | |||
Income Taxes [Line Items] | |||
Operating loss carry-forward | 40,500 | ||
COLORADO | Between 2022 and 2037 [Member] | State and Local | |||
Income Taxes [Line Items] | |||
Operating loss carry-forward | 30,800 | ||
COLORADO | No Expiration [Member] | State and Local | |||
Income Taxes [Line Items] | |||
Operating loss carry-forward | 9,800 | ||
CANADA | Between 2026 and 2041 [Member] | Foreign Tax Authority | |||
Income Taxes [Line Items] | |||
Operating loss carry-forward | 30,800 | ||
Aquila Resources Inc. | |||
Income Taxes [Line Items] | |||
Valuation allowance | $ 27,500 |
Income Taxes - U.S. And Foreign
Income Taxes - U.S. And Foreign Components Of Loss Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Taxes | |||
U.S. Operations | $ (6,369) | $ (7,196) | $ (6,338) |
Foreign Operations | 24,012 | 6,438 | 21,837 |
Income (loss) before income taxes | $ 17,643 | $ (758) | $ 15,499 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Taxes | |||
State Current Taxes | $ 305 | ||
Foreign Current Taxes | 11,426 | $ 3,294 | $ 6,210 |
Total current taxes | 11,731 | 3,294 | 6,210 |
Federal Deferred Taxes | 2,999 | 1,881 | |
Foreign Deferred Taxes | (2,116) | (720) | 1,876 |
Total deferred taxes | (2,116) | 2,279 | 3,757 |
Total income tax provision | $ 9,615 | $ 5,573 | $ 9,967 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Taxes Reported At Company's Tax Rate And U.S. Federal Statutory Tax Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Taxes | |||
Tax at statutory rates | $ 3,705 | $ (159) | $ 3,255 |
Foreign rate differential | 2,095 | 558 | 1,969 |
GILTI Inclusion | (886) | 2,173 | |
Changes in deferred tax assets | (1,189) | 3,919 | 277 |
Mexico mining tax | 1,590 | 280 | 1,126 |
Foreign exchange | 535 | 866 | 255 |
Stock option expiration | 2,471 | 449 | 361 |
Mexico Withholding Tax | 679 | 192 | 374 |
Deduction for Inflation in Mexico | (981) | (550) | (338) |
U.S. State income tax | 585 | 127 | 139 |
Other | 125 | 777 | 376 |
Total income tax provision | $ 9,615 | $ 5,573 | $ 9,967 |
Income Taxes - Tax Effects of T
Income Taxes - Tax Effects of Temporary Differences That Give Rise to Significant Portions of Deferred Tax Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Income Taxes | ||
Tax loss carryforward | $ 29,496 | $ 2,190 |
Property and equipment | 12,092 | 10,355 |
Share-based compensation | 1,068 | 4,018 |
Foreign tax credits | 4,089 | 4,089 |
Inventory | 142 | 79 |
Foreign Mining Tax | 793 | 199 |
Accounts Payable | 2,708 | 912 |
Employee profit sharing obligation | 566 | |
Zinc Derivatives | 608 | |
Other | 362 | 377 |
Total deferred tax assets | 51,924 | 22,219 |
Valuation allowance | (36,933) | (10,592) |
Deferred tax assets after valuation allowance | 14,991 | 11,627 |
Net deferred tax liability | (13,126) | |
Deferred tax liability - Property, plant and mine development | $ (28,117) | (11,318) |
Net deferred tax (liability) asset | $ 309 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Prepaid Expenses And Other Current Assets | ||
Advances to suppliers | $ 188 | $ 374 |
Prepaid insurance | 1,222 | 709 |
IVA taxes receivable, net | 20 | 846 |
Promissory Note | 3,885 | |
Other current assets | 266 | 647 |
Total | $ 1,696 | $ 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 | Dec. 31, 2021 | Dec. 31, 2020 |
Property, equipment and mine development - net | ||
Property and equipment, gross | $ 261,938 | $ 153,595 |
Accumulated depreciation and amortization | (105,167) | (91,084) |
Total property, equipment and mine development - net | 156,771 | 62,511 |
Accrued capital expenditures | 1,700 | 1,000 |
Asset retirement costs | ||
Property, equipment and mine development - net | ||
Property and equipment, gross | 1,065 | 1,064 |
Construction-In-Progress | ||
Property, equipment and mine development - net | ||
Property and equipment, gross | 15,854 | 7,158 |
Furniture and office equipment | ||
Property, equipment and mine development - net | ||
Property and equipment, gross | 1,685 | 1,839 |
Land And Mineral Rights | ||
Property, equipment and mine development - net | ||
Property and equipment, gross | 9,230 | 230 |
Mining Properties and Mineral Rights | ||
Property, equipment and mine development - net | ||
Property and equipment, gross | 79,964 | |
Light Vehicles And Other Mobile Equipment | ||
Property, equipment and mine development - net | ||
Property and equipment, gross | 2,224 | 2,192 |
Machinery And Equipment | ||
Property, equipment and mine development - net | ||
Property and equipment, gross | 33,213 | 31,227 |
Mill facilities and infrastructure | ||
Property, equipment and mine development - net | ||
Property and equipment, gross | 24,973 | 24,407 |
Mine Development | ||
Property, equipment and mine development - net | ||
Property and equipment, gross | 92,138 | 83,859 |
Software and licenses | ||
Property, equipment and mine development - net | ||
Property and equipment, gross | $ 1,592 | $ 1,619 |
Property, Plant and Mine Deve_4
Property, Plant and Mine Development, net - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Mine Development, net | |||
Depreciation and amortization expense | $ 15,996 | $ 17,413 | $ 19,549 |
Accrued Expenses and Other Li_3
Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Apr. 23, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Accrued royalty payments | $ 1,743 | $ 1,796 | |
Dividends payable | 247 | ||
Zinc derivatives | 1,844 | ||
Employee profit sharing obligation | 1,888 | ||
Other payables | 1,100 | 232 | |
Total accrued expenses and other current liabilities | 6,575 | 2,275 | |
Other Liabilities, Noncurrent [Abstract] | |||
Accrued non-current labor obligation | 920 | ||
Deferred stock unit ("DSU") compensation liability | 206 | ||
Other long-term liabilities | 826 | 13 | |
Total other non-current liabilities | 1,952 | $ 13 | |
Derivative liability | 1,800 | ||
Percentage of statutory profit sharing payable | 10.00% | ||
Other Long-term Liabilities And Other Expenses [member] | |||
Other Liabilities, Noncurrent [Abstract] | |||
Accrued non-current labor obligation | $ 900 | ||
Deferred Profit Sharing [Member] | |||
Other Liabilities, Noncurrent [Abstract] | |||
Percentage of statutory profit sharing payable | 10.00% | ||
Deferred Profit Sharing [Member] | Current Liabilities And Production Cost [Member] | |||
Employee profit sharing obligation | $ 1,900 |
Gold and Silver Stream Agreem_3
Gold and Silver Stream Agreements - Liabilities (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Deferred revenue | $ 42,560 |
Gold Streaming Agreement | |
Deferred revenue | 20,364 |
Silver Streaming Agreement | |
Deferred revenue | $ 22,196 |
Gold and Silver Stream Agreem_4
Gold and Silver Stream Agreements - Narrative (Details) | 1 Months Ended | ||
Jun. 30, 2020USD ($)oz | Dec. 31, 2021USD ($) | Nov. 30, 2017USD ($) | |
Discount rate (as a percent) | 8.00% | ||
Deferred revenue | $ 42,560,000 | ||
Gold Streaming Agreement | |||
Deferred revenue | 20,364,000 | ||
Gold Streaming Agreement | Aquila Resources Inc. | Gold [Member] | |||
Amount committed | $ 50,000,000 | $ 55,000,000 | |
Cash acquisition costs | 20,000,000 | ||
Deposit amount | 5,000,000 | ||
Project Debt Finance First Draw Down | $ 25,000,000 | ||
Initial Term of Agreement | 40 years | ||
Automatic Renewal Term of Agreement | 10 years | ||
Deferred revenue | 20,000,000 | ||
Contingent Security Deposit Liability | 30,000,000 | ||
Threshold Stream (as a percent) | 18.50% | ||
Production Threshold | oz | 105,000 | ||
Trail Stream (as a percent) | 9.25% | ||
Spot price of gold (as a percent) | 30.00% | ||
Maximum Amount Receivable on Gold Per Ounce | $ 600 | ||
Gold Streaming Agreement | Aquila Resources Inc. | Silver | |||
Deferred revenue | 17,200,000 | ||
Threshold price of silver at which deposit received is adjusted | $ 4 | ||
Gold Streaming Agreement | Gold Resources Acquisition Company | Aquila Resources Inc. | Gold [Member] | |||
Ownership percentage | 100.00% | ||
Silver Streaming Agreement | |||
Deferred revenue | $ 22,196,000 | ||
Silver Streaming Agreement | Aquila Resources Inc. | Silver | |||
Cash acquisition costs | $ 17,200,000 | ||
Deposit amount | $ 0 | ||
Initial Term of Agreement | 40 years | ||
Automatic Renewal Term of Agreement | 10 years | ||
Commodity produced (as a percent) | 85.00% |
Reclamation and Remediation (De
Reclamation and Remediation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 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 loss (gain) | (57) | (113) |
Reclamation liabilities - balance at end of period | 1,833 | 1,890 |
Asset retirement obligation - balance at beginning of period | 1,208 | 1,105 |
Changes in estimate | 82 | |
Accretion | 109 | 79 |
Foreign currency exchange loss (gain) | (38) | (58) |
Asset retirement obligation - balance at end of period | 1,279 | 1,208 |
Total period end balance | $ 3,112 | $ 3,098 |
Reclamation and Remediation - N
Reclamation and Remediation - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Undiscounted reclamation liabilities | $ 1,833 | $ 1,890 | $ 2,003 |
Asset Retirement Obligation | 1,279 | 1,208 | $ 1,105 |
Exploration reclamation liability | 3,112 | 3,098 | |
Don David Gold Mine | |||
Undiscounted reclamation liabilities | $ 1,800 | 1,900 | |
Reclamation and remediation discount rate | 8.00% | ||
Asset Retirement Obligation | $ 1,300 | $ 1,200 | |
Back Forty Project | |||
Exploration reclamation liability | $ 600 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) $ in Thousands, $ in Millions | Dec. 30, 2013CAD ($) | Dec. 31, 2021USD ($) | Dec. 10, 2021USD ($) | Dec. 31, 2020USD ($) |
Leases [Line Items] | ||||
Equipment purchase commitments | $ 400 | $ 400 | ||
Contingent consideration | $ 4,603 | |||
Aquila Resources Inc. | ||||
Leases [Line Items] | ||||
Percentage of voting equity interests acquired | 100.00% | 100.00% | ||
Contingent consideration | $ 4,603 | |||
Aquila Resources Inc. | Gold and silver streaming agreement with Osisko Bermuda Limited | Back Forty Project | ||||
Leases [Line Items] | ||||
Deposit amount | $ 37,200 | |||
Aquila Resources Inc. | HudBay Michigan Inc | ||||
Leases [Line Items] | ||||
Percentage of voting equity interests acquired | 100.00% | |||
Aquila Resources Inc. | Back Forty Project | ||||
Leases [Line Items] | ||||
Percentage of ownership interest held | 100.00% | |||
Contingent consideration | $ 9 | |||
Contingent consideration due upon project financing | $ 3 | |||
Percentage of contingent consideration payable in shares | 50.00% | |||
Contingent consideration payable in shares | $ 3 | |||
Right to repurchase ownership interest | 51.00% | |||
Contingent consideration | $ 4,600 | |||
Aquila Resources Inc. | Back Forty Project | 90 days after the commencement of commercial production | ||||
Leases [Line Items] | ||||
Contingent consideration payable in cash | $ 2 | |||
Aquila Resources Inc. | Back Forty Project | 270 days after the commencement of commercial production | ||||
Leases [Line Items] | ||||
Contingent consideration payable in cash | 2 | |||
Aquila Resources Inc. | Back Forty Project | 450 days after the commencement of commercial production | ||||
Leases [Line Items] | ||||
Contingent consideration payable in cash | $ 2 | |||
HudBay Michigan Inc | HudBay Michigan Inc | ||||
Leases [Line Items] | ||||
Percentage of net smelter return royalty on production | 1.00% | |||
HudBay Michigan Inc | Back Forty Project | ||||
Leases [Line Items] | ||||
Percentage of voting equity interests acquired at the asset acquisition date tied to the development of project | 51.00% |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 10, 2021 | Apr. 03, 2018 | |
Share issue price ( in dollars per share) | $ 3.88 | ||||
Shares issued as payment for third-party agreement | 25,000 | ||||
Period for consulting agreement | 1 year | ||||
Value of shares issued | $ 24,550 | $ 25,895 | $ 24,546 | ||
Dividend per share declared and paid | $ 0.0433 | ||||
Dividends declared | $ 3,100 | ||||
Dividends paid | $ 3,400 | ||||
Common stock, shares authorized | 200,000,000 | 200,000,000 | |||
Common stock, par value | $ 0.001 | $ 0.001 | |||
Dividend One | |||||
Dividends paid | $ 2,800 | ||||
Dividend Two | |||||
Dividends paid | $ 40 | ||||
ATM Agreement | |||||
Sale of shares | 0 | 8,421,259 | 6,625,588 | ||
Value of shares issued | $ 0 | $ 25,800 | $ 24,400 | ||
Aquila Resources Inc. | |||||
Common stock issued for the acquisition of mineral properties (in share) | 13,714,630 | ||||
Share issue price ( in dollars per share) | $ 1.79 | ||||
Percentage of voting equity interests acquired | 100.00% | 100.00% | |||
Golden Mile project | |||||
Share issue price ( in dollars per share) | $ 3.83 | ||||
Sale of shares | 26,110 | ||||
Maximum | ATM Agreement | |||||
Common stock aggregate gross sales price | $ 75,000 |
Derivatives (Details)
Derivatives (Details) $ in Thousands | Jan. 04, 2022$ / tt | Dec. 31, 2021USD ($)$ / oz$ / ttoz | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Embedded Derivative [Line Items] | ||||
Realized (loss) gain | $ 777 | $ 137 | $ 1,423 | |
Unrealized (loss) gain | 225 | (184) | 291 | |
Unsettled sales contracts value | 30,576 | |||
Realized loss on embedded derivative | (777) | (138) | (1,423) | |
Unrealized loss on embedded derivative | (225) | 185 | (291) | |
Trading Agreement With Auramet International LLC | Metal And Currencies Derivatives | ||||
Embedded Derivative [Line Items] | ||||
Realized (loss) gain | 1,200 | |||
Unrealized (loss) gain | 1,800 | |||
Gold | ||||
Embedded Derivative [Line Items] | ||||
Realized (loss) gain | $ (47) | 623 | 318 | |
Unrealized (loss) gain | (237) | 117 | ||
Under contract | oz | 3,014 | |||
Average forward price | $ / oz | 1,803 | |||
Unsettled sales contracts value | $ 5,434 | |||
Silver. | ||||
Embedded Derivative [Line Items] | ||||
Realized (loss) gain | (44) | 344 | 167 | |
Unrealized (loss) gain | $ (159) | (244) | 208 | |
Under contract | oz | 215,786 | |||
Average forward price | $ / oz | 23.18 | |||
Unsettled sales contracts value | $ 5,002 | |||
Copper | ||||
Embedded Derivative [Line Items] | ||||
Realized (loss) gain | 73 | 35 | 17 | |
Unrealized (loss) gain | $ 6 | (15) | 114 | |
Under contract | t | 275 | |||
Average forward price | $ / t | 9,598 | |||
Unsettled sales contracts value | $ 2,639 | |||
Lead | ||||
Embedded Derivative [Line Items] | ||||
Realized (loss) gain | 163 | (143) | (44) | |
Unrealized (loss) gain | $ (2) | 59 | (64) | |
Under contract | t | 1,503 | |||
Average forward price | $ / t | 2,311 | |||
Unsettled sales contracts value | $ 3,473 | |||
Zinc | ||||
Embedded Derivative [Line Items] | ||||
Realized (loss) gain | 632 | (722) | 965 | |
Unrealized (loss) gain | $ 380 | $ 253 | $ (84) | |
Under contract | t | 4,180 | |||
Average forward price | $ / t | 3,356 | |||
Unsettled sales contracts value | $ 14,028 | |||
Realized loss on embedded derivative | 478 | |||
Unrealized loss on embedded derivative | $ 1,800 | |||
Call option sold price per tonne | $ / t | 3,500 | 3,066 | ||
Call option sold volume | t | 3,150 | |||
Outstanding derivative position | t | 5,700 | |||
Derivative, Average Cap Price | $ / t | 3,342 | |||
Derivative, Floor Price | $ / t | 3,200 | 3,047 | ||
Zinc | Maximum | ||||
Embedded Derivative [Line Items] | ||||
Derivative, Average Cap Price | $ / t | 3,408 |
Employee Benefits (Details)
Employee Benefits (Details) | Apr. 23, 2021 | Dec. 31, 2021 |
Employee Benefits | ||
Defined contribution plan maximum percentage amount of the employee's gross pay that the employee can contribute | 50.00% | |
Percentage Of Statutory Profit Sharing Payable | 10.00% |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2021shares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020USD ($)employee$ / sharesshares | Dec. 31, 2019USD ($)$ / shares | |
Equity Incentive plan shares for issuance authorized | shares | 5,000,000 | |||
Options granted | shares | 600,000 | 100,000 | ||
Weighted-average grant date fair value of options granted | $ / shares | $ 1.65 | $ 2.38 | $ 1.94 | |
Intrinsic value of shares | $ | $ 100 | $ 0 | $ 200 | |
Weighted Average Exercise Price, Exercised | $ / shares | $ 1.31 | $ 1.31 | ||
Fair value | $ | $ 300 | $ 1,000 | $ 1,600 | |
Number of stock options exercised | shares | 253,335 | 0 | ||
Shares exercised | shares | 237,719 | |||
Shares not exercised | shares | 15,616 | |||
Proceeds from the exercise of stock options | $ | $ 300 | 98 | ||
Common shares issued | shares | 0 | |||
Deferred stock units expense | $ | $ 200 | |||
Deferred stock units liability | $ | 200 | |||
Stock-based compensation | $ | 875 | $ 2,230 | $ 1,932 | |
Estimated unrecognized compensation expense | $ | 700 | |||
Accrued Liabilities Current | $ | 6,575 | 2,275 | ||
STIP | ||||
Accrued Liabilities Current | $ | $ 700 | 0 | ||
Restricted Stock Units (RSUs) | ||||
Vesting period | 3 years | |||
Restricted stock units, granted | shares | 2,614 | |||
Estimated unrecognized compensation expense | $ | $ 300 | |||
Restricted Stock Units (RSUs) | Spinoff | ||||
Number of options that vested | shares | 105,568 | |||
Restricted stock units, granted | shares | 127,068 | |||
Number of employees | employee | 4 | |||
Stock-based compensation | $ | $ 800 | |||
Deferred Stock Units | ||||
Number of units Granted in lieu of board fees | shares | 1,960 | |||
Vesting period | 10 years | |||
Restricted stock units, granted | shares | 130,000 | 131,960 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Activity Under Stock Option Plan (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding, Beginning Balance (in shares) | 4,173,168 | 4,564,735 | |
Granted (in shares) | 600,000 | 100,000 | |
Stock option exercised (in shares) | (253,335) | 0 | |
Expired (in shares) | (2,035,966) | (486,666) | |
Forfeited (in shares) | (29,167) | (4,901) | |
Outstanding, Ending Balance (in shares) | 2,454,700 | 4,173,168 | 4,564,735 |
Vested and exercisable as of December 31, 2021 (in shares) | 1,848,033 | ||
Weighted Average Exercise Price | |||
Outstanding Weighted Average Exercise Price, Beginning Balance | $ 6.83 | $ 8.54 | |
Weighted Average Exercise Price, Granted | 3.22 | 3.45 | |
Weighted Average Exercise Price, Exercised | 1.31 | $ 1.31 | |
Weighted Average Exercise Price, Expired | 9.14 | 13.82 | |
Weighted Average Exercise Price, Forfeited | 5.89 | 6.57 | |
Outstanding Weighted Average Exercise Price, Ending Balance | 4.62 | $ 6.83 | $ 8.54 |
Weighted Average Exercise Price, Vested and exercisable as of end of period | $ 5.06 | ||
Weighted -Average Remaining contractual Term (in years) | |||
Weighted Average Remaining Contractual Term (in years), Outstanding as Beginning of period | 4 years 6 months 29 days | 3 years 6 months 29 days | 5 years 1 month 2 days |
Weighted Average Remaining Contractual Term (in years), Outstanding as of end of period | 4 years 6 months 29 days | 3 years 6 months 29 days | 5 years 1 month 2 days |
Weighted Average Remaining Contractual Term (in years), Vested and exercisable as of end of period | 3 years 2 months 1 day | ||
Additional disclosures | |||
Aggregate Intrinsic Value, Outstanding as of beginning of period | $ 1,324 | $ 4,513 | |
Aggregate Intrinsic Value, Outstanding as of end of period | 109 | $ 1,324 | $ 4,513 |
Aggregate Intrinsic Value, Vested and exercisable as of end of period | $ 109 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Stock Options by Exercise Price Range (Details) | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding Number of Options | shares | 2,454,700 |
Outstanding Weighted Average Remaining Contractual Term (in years) | 4 years 6 months 29 days |
Outstanding Weighted Average Exercise Price (per share) | $ 4.62 |
Exercisable Number of Options | shares | 1,848,033 |
Exercisable Weighted Average Exercise Price (per share) | $ 5.06 |
$0.00 - $6.25 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Stock options exercise price range, lower limit | 0 |
Stock options exercise price range, upper limit | $ 6.25 |
Outstanding Number of Options | shares | 2,154,700 |
Outstanding Weighted Average Remaining Contractual Term (in years) | 5 years 1 month 13 days |
Outstanding Weighted Average Exercise Price (per share) | $ 3.04 |
Exercisable Number of Options | shares | 1,548,033 |
Exercisable Weighted Average Exercise Price (per share) | $ 2.96 |
$6.25 -$12.50 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Stock options exercise price range, lower limit | 6.25 |
Stock options exercise price range, upper limit | 12.50 |
$12.50 - $18.75 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Stock options exercise price range, lower limit | 12.50 |
Stock options exercise price range, upper limit | $ 18.75 |
Outstanding Number of Options | shares | 300,000 |
Outstanding Weighted Average Remaining Contractual Term (in years) | 7 months 20 days |
Outstanding Weighted Average Exercise Price (per share) | $ 15.92 |
Exercisable Number of Options | shares | 300,000 |
Exercisable Weighted Average Exercise Price (per share) | $ 15.92 |
Stock-Based Compensation - Blac
Stock-Based Compensation - Black-Scholes Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Stock-Based Compensation | |||
Risk-free interest rate | 0.55% | 0.23% | 2.20% |
Dividend yield | 0.26% | 0.97% | 0.53% |
Expected volatility | 64.71% | 66.03% | 62.76% |
Expected life in years | 6 years | 6 years | 5 years |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of RSU activity under Incentive Plan (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restricted and Deferred Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Nonvested, Beginning Balance (in shares) | 349,865 | 349,865 | 401,235 | |
Number of units Granted | 134,574 | 203,181 | ||
Vested (in shares) | (207,222) | (238,062) | ||
Forfeited (in shares) | (171,418) | (16,489) | ||
Nonvested, Ending Balance | 105,799 | 349,865 | 401,235 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||
Total intrinsic value | $ 165 | $ 1,017 | $ 2,223 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ||||
Weighted Average Remaining Contractual Term (in years) | 2 years 8 months 8 days | 4 years 10 months 13 days | 8 years | |
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Number of units Granted | 2,614 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||
Weighted Average Exercise Price, Granted (per share) | $ 2.56 | $ 3.78 | $ 4.83 | |
Total intrinsic value | $ 100 | $ 800 | $ 400 | |
Deferred Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Number of units Granted | 130,000 | 131,960 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||
Weighted Average Exercise Price, Granted (per share) | $ 1.63 | |||
Number of shares converted | 0 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-based compensation expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Stock-Based Compensation | |||
Stock options | $ 549 | $ 1,956 | $ 1,458 |
Restricted stock units | 120 | 1,083 | 474 |
Deferred stock units | 206 | ||
Total | $ 875 | $ 3,039 | $ 1,932 |
Zinc Zero Cost Collar (Details)
Zinc Zero Cost Collar (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized loss on zinc zero cost collar | $ 225 | $ (184) | $ 291 |
Realized loss on zinc zero cost collar | 777 | 137 | 1,423 |
Total | (3,000) | ||
Zinc | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized loss on zinc zero cost collar | 380 | 253 | (84) |
Realized loss on zinc zero cost collar | 632 | $ (722) | $ 965 |
Zero Cost Collar | Zinc | Not designated as hedge | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized loss on zinc zero cost collar | 1,844 | ||
Realized loss on zinc zero cost collar | 1,156 | ||
Total | $ 3,000 |
Other (Income) Expense, Net (De
Other (Income) Expense, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other (Income) Expense, Net | |||
Unrealized currency exchange (gain) loss | $ 493 | $ 105 | $ (19) |
Realized currency exchange loss (gain) | (111) | (17) | 252 |
Unrealized loss (gain) from gold and silver rounds/bullion, net | 55 | (1,173) | (671) |
Loss on disposal of fixed assets | 26 | 3 | 12 |
Increase (decrease) in reserve for inventory | 175 | (148) | 885 |
Unrealized loss on zinc zero cost collar | 1,844 | ||
Employee benefit obligation | 947 | ||
Other (income) expense | (390) | 42 | 5 |
Total | $ 1,020 | $ (1,188) | $ 464 |
Net Income per Common Share - N
Net Income per Common Share - Narrative (Details) - $ / shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net Income per Common Share | |||
Stock options excluded from computation of diluted weighted average share outstanding | 2.2 | 4.2 | 3.6 |
Shares excluded from weighted average shares outstanding, exercise price | $ 10.69 | $ 8.95 | $ 10.44 |
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 | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net Income per Common Share | |||
Net income (loss) from continuing operations | $ 8,028 | $ (6,331) | $ 5,532 |
Net income from discontinued operations, net of income taxes | 10,690 | 300 | |
Net income | $ 8,028 | $ 4,359 | $ 5,832 |
Basic weighted average shares of common stock outstanding | 75,301,253 | 69,902,708 | 63,681,156 |
Dilutive effect of share-based awards | 307,374 | 783,535 | 351,834 |
Diluted weighted average common shares outstanding | 75,608,627 | 70,686,243 | 64,032,990 |
Basic net income (loss) per common share: | |||
Basic net income (loss) per common share from continuing operations | $ 0.11 | $ (0.09) | $ 0.09 |
Basic net income per common share from discontinued operations | 0.15 | ||
Basic net income (loss) per common share | 0.11 | 0.06 | 0.09 |
Diluted net income (loss) per common share: | |||
Diluted net income (loss) per common share from continuing operations | 0.11 | (0.09) | 0.09 |
Diluted net income per common share from discontinued operations | 0.15 | ||
Diluted net income (loss) per common share | $ 0.11 | $ 0.06 | $ 0.09 |
Fair Value Measurement (Details
Fair Value Measurement (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Accounts Receivable | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Realized/unrealized derivative (loss) gain, net | $ 0 | $ 200 |
Fair Value Inputs Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 33,712 | 25,405 |
Gold and silver rounds/bullion | 589 | 671 |
Fair Value Inputs Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Accounts receivable, net | 8,672 | $ 4,226 |
Derivative liability - zinc zero cost collar | $ (1,844) |
Fair Value Measurement - Statem
Fair Value Measurement - Statement Of Income Classification (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value Statement Of Income Classification [Line Items] | |||
Unrealized (loss) on zinc zero cost collar, net | $ (1,844) | ||
Sales, net | |||
Fair Value Statement Of Income Classification [Line Items] | |||
Realized/unrealized derivative (loss) gain, net | 1,002 | $ (47) | $ 1,714 |
Other expenses, net | |||
Fair Value Statement Of Income Classification [Line Items] | |||
Realized/unrealized gold and silver rounds/bullion gain (loss), net | (55) | $ 1,173 | $ 663 |
Realized (loss) on zinc zero cost collar, net | (1,156) | ||
Unrealized (loss) on zinc zero cost collar, net | $ (1,844) |
Fair Value Measurement - Realiz
Fair Value Measurement - Realized Unrealized Derivatives, net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivatives, Fair Value [Line Items] | |||
Realized (loss) gain | $ 777 | $ 137 | $ 1,423 |
Unrealized (loss) gain | 225 | (184) | 291 |
Total realized/ unrealized derivatives, net | 1,002 | (47) | 1,714 |
Gold | |||
Derivatives, Fair Value [Line Items] | |||
Realized (loss) gain | (47) | 623 | 318 |
Unrealized (loss) gain | (237) | 117 | |
Total realized/ unrealized derivatives, net | (47) | 386 | 435 |
Silver. | |||
Derivatives, Fair Value [Line Items] | |||
Realized (loss) gain | (44) | 344 | 167 |
Unrealized (loss) gain | (159) | (244) | 208 |
Total realized/ unrealized derivatives, net | (203) | 100 | 375 |
Copper | |||
Derivatives, Fair Value [Line Items] | |||
Realized (loss) gain | 73 | 35 | 17 |
Unrealized (loss) gain | 6 | (15) | 114 |
Total realized/ unrealized derivatives, net | 79 | 20 | 131 |
Lead | |||
Derivatives, Fair Value [Line Items] | |||
Realized (loss) gain | 163 | (143) | (44) |
Unrealized (loss) gain | (2) | 59 | (64) |
Total realized/ unrealized derivatives, net | 161 | (84) | (108) |
Zinc | |||
Derivatives, Fair Value [Line Items] | |||
Realized (loss) gain | 632 | (722) | 965 |
Unrealized (loss) gain | 380 | 253 | (84) |
Total realized/ unrealized derivatives, net | $ 1,012 | $ (469) | $ 881 |
Discontinued Operations - Resul
Discontinued Operations - Results of discontinued operations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Net income from discontinued operations, net of income taxes | $ 10,690 | $ 300 |
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 | 53,967 | 15,065 |
Mine cost of sales | (37,784) | (14,582) |
Mine gross profit | 16,183 | 483 |
Exploration expenses | (2,649) | (932) |
Other expense, net | (838) | (168) |
Profit (loss) before income taxes | 12,696 | (617) |
Income tax expense (benefit) | 2,006 | (917) |
Net income from discontinued operations, net of income taxes | $ 10,690 | $ 300 |
Discontinued Operations - Selec
Discontinued Operations - Selected Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from discontinued operating activities: | ||
Net income from discontinued operations, net of income taxes | $ 10,690 | $ 300 |
Changes in operating assets and liabilities: | ||
Net cash provided by discontinued operating activities | 14,184 | (2,705) |
Cash flows from discontinued investing activities: | ||
Net cash used in discontinued investing activities | (6,488) | (22,538) |
Cash flows from discontinued financing activities: | ||
Cash transferred from Gold Resource Corporation at Spin-Off | (27,774) | |
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 discontinued operations, net of income taxes | 10,690 | 300 |
Adjustments to reconcile net income to net cash from discontinued operating activities: | ||
Deferred income benefit | (224) | (917) |
Depreciation and amortization | 10,377 | 4,022 |
Other operating adjustments | 48 | 17 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (145) | |
Inventories | (2,300) | (6,490) |
Prepaid expenses and other current assets | (1,670) | 346 |
Other non-current assets | (2,085) | (3,600) |
Accounts payable and other accrued liabilities | (1,707) | 3,617 |
Mining royalty and income taxes payable, net | 1,200 | |
Net cash provided by discontinued operating activities | 14,184 | (2,705) |
Cash flows from discontinued investing activities: | ||
Capital expenditures | (6,488) | (22,538) |
Net cash used in discontinued investing activities | (6,488) | (22,538) |
Cash flows from discontinued financing activities: | ||
Repayment of finance leases | (452) | (2,019) |
Net cash provided (to) by discontinued financing activities | (452) | (2,019) |
Non-cash investing activities: | ||
Change in capital expenditures in accounts payable | (1,544) | (1,174) |
Change in estimate for asset retirement costs | $ 1,159 | $ 1,726 |
Supplementary Cash Flow Infor_3
Supplementary Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Supplementary Cash Flow Information | |||
Unrealized loss (gain) on gold and silver rounds/bullion | $ 53 | $ (170) | $ (671) |
Realized loss (gain) on gold and silver rounds/bullion | 2 | (1,003) | |
Unrealized foreign currency exchange (gain) loss | 493 | 105 | (19) |
Loss on disposition of fixed assets | 37 | 3 | 12 |
Increase (decrease) in reserve for inventory | 175 | (148) | 885 |
Stock based compensation related to restructuring | 809 | ||
Unrealized loss on zinc zero cost collar | 1,844 | ||
Other | 105 | 98 | |
Total other operating adjustments | $ 2,709 | $ (404) | $ 305 |
Segment Reporting (Details)
Segment Reporting (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021USD ($)segment | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Number of geographic regions | segment | 3 | |||
Balance sheet information | ||||
Total current assets | $ 58,915 | $ 42,873 | ||
Total non-current assets | 156,847 | 62,861 | ||
Total assets | 215,762 | 105,734 | ||
Total current liabilities | 29,659 | 12,085 | ||
Total non-current liabilities | 65,353 | 3,111 | ||
Total shareholders' equity | 120,750 | 90,538 | $ 158,058 | $ 127,262 |
Total liabilities and shareholders' equity | 215,762 | 105,734 | ||
Income statement information | ||||
Sales, net | 125,196 | 90,692 | 120,301 | |
Total mine cost of sales | 88,449 | 78,205 | 91,669 | |
Exploration expenses | 4,886 | 2,485 | 2,720 | |
Total other costs and expenses (without exploration) | 14,218 | 10,760 | 10,413 | |
Provision for income taxes | 9,615 | 5,573 | 9,967 | |
Net income (loss) from continuing operations | 8,028 | (6,331) | 5,532 | |
Operating Segments | Oaxaca, Mexico | ||||
Balance sheet information | ||||
Total current assets | 50,057 | 34,744 | ||
Total non-current assets | 66,756 | 62,695 | ||
Total assets | 116,813 | 97,439 | ||
Total current liabilities | 25,833 | 11,007 | ||
Total non-current liabilities | 1,436 | 3,098 | ||
Total shareholders' equity | 89,544 | 83,334 | ||
Total liabilities and shareholders' equity | 116,813 | 97,439 | ||
Income statement information | ||||
Sales, net | 125,196 | 90,692 | 120,301 | |
Total mine cost of sales | 88,449 | 78,205 | 91,669 | |
Exploration expenses | 4,813 | 2,418 | 2,614 | |
Total other costs and expenses (without exploration) | 3,995 | 48 | 1,101 | |
Provision for income taxes | 8,518 | 2,331 | 7,612 | |
Net income (loss) from continuing operations | 19,421 | 7,690 | 17,305 | |
Operating Segments | Michigan, USA | ||||
Balance sheet information | ||||
Total current assets | 5,528 | |||
Total non-current assets | 90,018 | |||
Total assets | 95,546 | |||
Total current liabilities | 2,459 | |||
Total non-current liabilities | 63,438 | |||
Total shareholders' equity | 29,649 | |||
Total liabilities and shareholders' equity | 95,546 | |||
Income statement information | ||||
Exploration expenses | 55 | |||
Total other costs and expenses (without exploration) | 1,167 | |||
Provision for income taxes | 305 | |||
Net income (loss) from continuing operations | (1,527) | |||
Corporate and Other | ||||
Balance sheet information | ||||
Total current assets | 3,330 | 8,129 | ||
Total non-current assets | 73 | 166 | ||
Total assets | 3,404 | 8,295 | ||
Total current liabilities | 1,367 | 1,078 | ||
Total non-current liabilities | 479 | 13 | ||
Total shareholders' equity | 1,557 | 7,204 | ||
Total liabilities and shareholders' equity | 3,403 | 8,295 | ||
Income statement information | ||||
Exploration expenses | 18 | 67 | 106 | |
Total other costs and expenses (without exploration) | 9,056 | 10,712 | 9,312 | |
Provision for income taxes | 792 | 3,242 | 2,355 | |
Net income (loss) from continuing operations | $ (9,866) | $ (14,021) | $ (11,773) |
COVID-19 Pandemic (Details)
COVID-19 Pandemic (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
COVID-19 Pandemic | |
COVID-19 specific costs | $ 0.2 |