Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2022 shares | |
Document Information Line Items | |
Entity Registrant Name | Seabridge Gold Inc. |
Trading Symbol | SA |
Document Type | 40-F/A |
Current Fiscal Year End Date | --12-31 |
Entity Common Stock, Shares Outstanding | 81,339,012 |
Amendment Flag | true |
Amendment Description | Seabridge Gold Inc. (the “Registrant” or “we” or “us”) is a Canadian issuer eligible to file its annual report pursuant to Section 13 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), on Form 40-F (“Form 40-F”) pursuant to the multi-jurisdictional disclosure system of the Exchange Act. We are a “foreign private issuer” as defined in Rule 3b-4 under the Exchange Act. Accordingly, our equity securities are exempt from Sections 14(a), 14(b), 14(c), 14(f) and 16 of the Exchange Act pursuant to Rule 3a12-3.This Amendment No. 1 to the Annual Report on Form 40-F (“Amendment No. 1”) amends the Annual Report on Form 40-F of Seabridge Gold Inc. for the year ended December 31, 2022, which was originally filed with the U.S. Securities and Exchange Commission on March 31, 2023 (the “Original Annual Report”). This Amendment No. 1 is being filed because a filing error, caused by a clerical mistake during the filing, had exhibit 99.1 overwritten with exhibit 99.2. Amendment No.1 therefore fixes the issue and re-files the 40-F with Exhibit 99.1 being the correct exhibit.Except as described above, the Original Annual Report remains unchanged. This Amendment No. 1 does not reflect events occurring after the filing of the Original Annual Report, or modify or update those disclosures. |
Entity Central Index Key | 0001231346 |
Entity Current Reporting Status | Yes |
Document Period End Date | Dec. 31, 2022 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | FY |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | true |
Document Registration Statement | false |
Document Annual Report | true |
Entity File Number | 001-32135 |
Entity Incorporation, State or Country Code | Z4 |
Entity Primary SIC Number | 1040 |
Entity Address, Address Line One | 106 Front Street East, Suite 400 |
Entity Address, Address Line Two | Toronto |
Entity Address, City or Town | Ontario |
Entity Address, Country | CA |
Entity Address, Postal Zip Code | M5A 1E1 |
City Area Code | (416) |
Local Phone Number | 367-9292 |
Title of 12(b) Security | Common Shares |
Security Exchange Name | NYSE |
Annual Information Form | true |
Audited Annual Financial Statements | true |
Entity Interactive Data Current | Yes |
Auditor Name | KPMG LLP |
Auditor Location | Toronto, ON, Canada |
Auditor Firm ID | 85 |
Business Contact | |
Document Information Line Items | |
Entity Address, Address Line One | 1180 Sixth Avenue |
Entity Address, City or Town | New York |
Entity Address, Postal Zip Code | 10036 |
City Area Code | (212) |
Local Phone Number | 299-5656 |
Contact Personnel Name | Corporation Service Company |
Entity Address, State or Province | NY |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - CAD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 46,150 | $ 11,523 |
Short-term deposits | 81,690 | 29,243 |
Amounts receivable and prepaid expenses | 8,220 | 10,026 |
Investment in marketable securities | 3,696 | 3,367 |
Convertible notes receivable | 631 | |
Total current assets | 140,387 | 54,159 |
Non-current assets | ||
Investment in associate | 1,389 | 2,429 |
Convertible notes receivable | 606 | |
Long-term receivables and other assets | 51,703 | 13,038 |
Mineral interests, property and equipment | 881,497 | 662,279 |
Reclamation deposits | 20,643 | 15,231 |
Total non-current assets | 955,232 | 693,583 |
Total assets | 1,095,619 | 747,742 |
Current liabilities | ||
Accounts payable and accrued liabilities | 42,956 | 12,165 |
Flow-through share premium | 4,183 | 1,366 |
Lease obligations | 511 | 90 |
Provision for reclamation liabilities | 4,343 | 3,680 |
Total current liabilities | 51,993 | 17,301 |
Non-current liabilities | ||
Secured note | 263,541 | |
Deferred income tax liabilities | 31,934 | 23,164 |
Lease obligations | 1,115 | 182 |
Provision for reclamation liabilities | 6,503 | 4,762 |
Total non-current liabilities | 303,093 | 28,108 |
Total liabilities | 355,086 | 45,409 |
Shareholders’ equity | 740,533 | 702,333 |
Total liabilities and shareholders’ equity | $ 1,095,619 | $ 747,742 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Profit or loss [abstract] | ||
Remeasurement of secured note | $ 36,967 | |
Gain on disposition of mineral interests | 21,943 | |
Corporate and administrative expenses | (16,090) | (13,379) |
Impairment of investment in associate | (873) | |
Equity loss of associate | (207) | (221) |
Other income - flow-through shares | 1,366 | 2,373 |
Environmental rehabilitation expense | (6,722) | (5,377) |
Unrealized gain (loss) on convertible notes receivable | (16) | 104 |
Foreign exchange gain (loss) | (12,874) | 22 |
Finance costs, interest expense and other income | (3,471) | (116) |
Interest income | 2,794 | 176 |
Earnings before income taxes | 874 | 5,525 |
Income tax expense | (8,268) | (4,630) |
Net earnings (loss) for the year | (7,394) | 895 |
Other comprehensive income (loss) | ||
Remeasurement of secured note | 2,912 | |
Change in fair value of marketable securities | 329 | (459) |
Tax impact | (831) | 61 |
Total other comprehensive income (loss) | 2,410 | (398) |
Comprehensive income (loss) for the year | $ (4,984) | $ 497 |
Weighted average number of common shares outstanding | ||
Basic (in Shares) | 80,058,861 | 76,413,554 |
Diluted (in Shares) | 80,058,861 | 77,600,688 |
Earnings (loss) per common share | ||
Basic (in Dollars per share) | $ (0.09) | $ 0.01 |
Diluted (in Dollars per share) | $ (0.09) | $ 0.01 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - CAD ($) $ in Thousands | Share capital | Warrants | Stock-based Compensation | Contributed Surplus | Deficit | Accumulated Other Comprehensive Gain (loss) | Total |
Balance at Dec. 31, 2020 | $ 704,599 | $ 3,275 | $ 23,011 | $ 36,089 | $ (150,878) | $ (1,378) | $ 614,718 |
Balance (in Shares) at Dec. 31, 2020 | 74,162,286 | ||||||
Share issuance - At-The-Market offering | $ 50,929 | 50,929 | |||||
Share issuance - At-The-Market offering (in Shares) | 2,242,112 | ||||||
Share issuance - Private placement | $ 8,358 | 8,358 | |||||
Share issuance - Private placement (in Shares) | 350,000 | ||||||
Share issuance - Options exercised | $ 32,077 | (14,370) | 17,707 | ||||
Share issuance - Options exercised (in Shares) | 1,585,501 | ||||||
Share issuance – Other | $ 11,100 | (3,275) | 7,825 | ||||
Share issuance – Other (in Shares) | 500,000 | ||||||
Share issuance - RSUs vested | $ 3,413 | (3,413) | |||||
Share issuance - RSUs vested (in Shares) | 135,450 | ||||||
Share issuance costs | $ (1,645) | (1,645) | |||||
Deferred tax on share issuance costs | 438 | 438 | |||||
Stock-based compensation | 3,506 | 3,506 | |||||
Expired options | (37) | 37 | |||||
Other comprehensive loss | (398) | (398) | |||||
Net income for the year | 895 | 895 | |||||
Balance at Dec. 31, 2021 | $ 809,269 | 8,697 | 36,126 | (149,983) | (1,776) | 702,333 | |
Balance (in Shares) at Dec. 31, 2021 | 78,975,349 | ||||||
Share issuance - At-The-Market offering | $ 22,793 | 22,793 | |||||
Share issuance - At-The-Market offering (in Shares) | 998,629 | ||||||
Share issuance - Private placement | $ 10,840 | 10,840 | |||||
Share issuance - Private placement (in Shares) | 675,400 | ||||||
Share issuance - Options exercised | $ 11,295 | (3,974) | 7,321 | ||||
Share issuance - Options exercised (in Shares) | 540,834 | ||||||
Share issuance - RSUs vested | $ 3,172 | (3,172) | |||||
Share issuance - RSUs vested (in Shares) | 148,800 | ||||||
Share issuance costs | $ (1,237) | (1,237) | |||||
Deferred tax on share issuance costs | 330 | 330 | |||||
Stock-based compensation | 3,138 | 3,138 | |||||
Expired options | (34) | 34 | |||||
Other comprehensive loss | 2,409 | 2,409 | |||||
Net income for the year | (7,394) | (7,394) | |||||
Balance at Dec. 31, 2022 | $ 856,462 | $ 4,655 | $ 36,160 | $ (157,377) | $ 633 | $ 740,533 | |
Balance (in Shares) at Dec. 31, 2022 | 81,339,012 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Operating Activities | ||
Net income (loss) | $ (7,394) | $ 895 |
Adjustment for non-cash items: | ||
Remeasurement gain on secured note | (36,967) | |
Gain on disposition of mineral interests | (21,943) | |
Environmental rehabilitation expense | 6,722 | 5,377 |
Stock-based compensation | 3,138 | 3,506 |
Other income - flow-through shares | (1,366) | (2,373) |
Income tax expense | 8,268 | 4,630 |
Unrealized foreign exchange loss | 21,158 | |
Other non-cash items | (2,044) | 457 |
Adjustment for cash items: | ||
Environmental rehabilitation disbursements | (4,499) | (3,320) |
Changes in working capital items: | ||
Amounts receivable and prepaid expenses | (845) | (5,056) |
Accounts payable and accrued liabilities | 5,846 | 6,090 |
Net cash used in operating activities | (7,983) | (11,737) |
Investing Activities | ||
Investment in short-term deposits | (401,825) | (24,349) |
Redemption of short-term deposits | 349,378 | 15,011 |
Mineral interests, property and equipment | (183,296) | (73,611) |
Interest paid | (14,735) | |
Long-term receivables and other assets | (30,545) | (9,172) |
Investment in reclamation deposits | (5,412) | (8,465) |
Cash proceeds from disposition of mineral interests | 21,943 | |
Net cash used in investing activities | (286,435) | (78,643) |
Financing Activities | ||
Secured note | 282,263 | |
Share issuance net of costs | 36,579 | 59,104 |
Exercise of options | 7,321 | 17,707 |
Exercise of warrants | 7,825 | |
Payment of lease liabilities | (334) | (77) |
Net cash from financing activities | 325,829 | 84,559 |
Effects of exchange rate fluctuation on cash and cash equivalents | 3,216 | (184) |
Net increase (decrease) in cash and cash equivalents during the year | 34,627 | (6,005) |
Cash and cash equivalents, beginning of the year | 11,523 | 17,528 |
Cash and cash equivalents, end of the year | $ 46,150 | $ 11,523 |
Reporting Entity
Reporting Entity | 12 Months Ended |
Dec. 31, 2022 | |
Reporting Entity [Abstract] | |
Reporting entity | 1. Reporting entity Seabridge Gold Inc. is comprised of Seabridge Gold Inc. (“Seabridge” or the “Company”) and its subsidiaries, KSM Mining ULC, Seabridge Gold (NWT) Inc., Seabridge Gold (Yukon) Inc., Seabridge Gold Corp., SnipGold Corp. and Snowstorm Exploration (LLC), and is a company engaged in the acquisition and exploration of gold properties located in North America. The Company was incorporated under the laws of British Columbia, Canada on September 4, 1979 and continued under the laws of Canada on October 31, 2002. Its common shares are listed on the Toronto Stock Exchange trading under the symbol “SEA” and on the New York Stock Exchange under the symbol “SA”. The Company is domiciled in Canada, the address of its registered office is 10th Floor, 595 Howe Street, Vancouver, British Columbia, Canada V6C 2T5 and the address of its corporate office is 106 Front Street East, 4th Floor, Toronto, Ontario, Canada M5A 1E1. |
Basis of Preparation
Basis of Preparation | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Basis of Preparation Explanatory [Abstract] | |
Basis of preparation | 2. Basis of preparation A. Statement of compliance These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). These financial statements were authorized for issuance by the Board of Directors of the Company on March 30, 2023. B. Basis of consolidation (i) Subsidiaries Subsidiaries are entities over which the Company has control. Control over an entity exists when the Company is exposed or has rights to returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Company. They are deconsolidated from the date on which control ceases. Business acquisitions are accounted for using the acquisition method whereby acquired assets and liabilities are recorded at fair value as of the date of acquisition with the excess of the purchase consideration over such fair value being recorded as goodwill and allocated to cash generating units. Non-controlling interest in an acquisition may be measured at either fair value or at the non-controlling interest’s proportionate share of the fair value of the acquiree’s net identifiable assets. If the fair value of the net assets acquired exceeds the purchase consideration, the difference is recognized immediately as a gain in the consolidated statement of operations and comprehensive income (loss). Where a business combination is achieved in stages, previously held non-controlling equity interests in the acquiree are re-measured at acquisition-date fair value and any resulting gain or loss is recognized in the consolidated statement of operations and comprehensive income (loss) or other comprehensive income, as appropriate. Acquisition related costs are expensed during the period in which they are incurred, except for the cost of debt or equity instruments issued in relation to the acquisition which is included in the carrying amount of the related instrument. Certain fair values may be estimated at the acquisition date pending confirmation or completion of the valuation process. Where provisional values are used in accounting for a business combination, they may be adjusted retrospectively during the measurement period. However, the measurement period will not exceed one year from the acquisition date. (ii) Associates An associate is an entity over which the Company has significant influence but not control nor joint control. Significant influence is presumed to exist where the Company has between 20% and 50% of the voting rights but can also arise where the Company has less than 20% if influence is exerted over policy decisions that affect the entity. The Company’s share of the net assets and net income or loss of associates is accounted for in the consolidated financial statements using the equity method of accounting. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Significant Accounting Policies [Abstract] | |
Significant accounting policies | 3. Significant accounting policies The significant accounting policies used in the preparation of these consolidated financial statements are described below. A. Basis of measurement The consolidated financial statements have been prepared on the historical cost basis, except certain financial instruments described in note “M”, which are measured at fair value. B. Translation of foreign currencies These consolidated financial statements are presented in Canadian dollars, which is the Company’s, and each of its subsidiaries’, functional currency. Foreign currency transactions are translated into Canadian dollars using the exchange rates prevailing at the dates of the transactions or valuation where items are re-measured. Foreign exchange gains and losses resulting from the settlement of such transactions are recognized in the consolidated statement of operations and comprehensive income (loss). Monetary assets and liabilities of the Company denominated in a foreign currency are translated into Canadian dollars at the rate of exchange at the statement of financial position date. Non-monetary assets and liabilities are translated at historical rates. Revenues and expenses are translated at average exchange rates prevailing during the period. Exchange gains and losses are included in the determination of profit or loss for the year. C. Critical accounting judgments and estimation uncertainty In applying the Company’s accounting policies in conformity with IFRS, management is required to make judgments, estimates and assumptions about the carrying amounts of certain assets and liabilities. These estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Actual results may differ from these estimates. (i) Critical accounting judgments The following are the critical judgments that the Company has made in the process of applying the Company’s accounting policies and that have the most significant effect on the amounts recognized in the consolidated financial statements (refer to appropriate accounting policies for details). Mineral reserves and resources To calculate reserves and resources, the Company uses assumptions and evaluates technical, economic and geological conditions for each ore body. Measured grade of the ore and geotechnical considerations can have a significant effect on the carrying value of mineral properties and therefore the recoverability of costs. Future market prices for gold and copper and other commodities are also factored into valuation models. Changes to these factors can affect the recoverability of mineral properties and impairment. Impairment of mineral interests Mineral interests are tested for impairment when events or changes in circumstances indicate that the carrying amount may not be recoverable. When an indication of impairment exists, and the carrying amount of the mineral interest exceeds its estimated recoverable amount, the carrying value is written down to the recoverable amount and the loss is recognized in the statement of operations and comprehensive income (loss). Reclamation Liabilities The Company records legal and constructive obligations required to restore locations in the period in which the obligation is incurred with a corresponding increase in the carrying amount of the related property. For closed mines, changes to obligations are charged directly to the statement of operations and comprehensive income (loss). (ii) Key sources of estimation uncertainty Mineral properties The recoverability of the carrying value of mineral properties and associated deferred exploration expenses is based on market conditions for minerals, underlying mineral resources associated with the properties and future costs that may be required for ultimate realization through mining operations or by sale. The Company is in an industry that is dependent on a number of factors including environmental, legal and political risks, the existence of economically recoverable reserves, the ability of the Company and its subsidiaries to obtain necessary financing to complete the development, and future profitable production or the proceeds of disposition thereof. Secured note liability The Company measures the fair value of its secured note liability using a discounted cash flow model with a Monte Carlo simulation. Key assumptions into this model include future silver prices, discount rates, forecasted silver production, and probabilities of Environmental Assessment Certificate (“EAC”) expiry, achieving commercial production and securing project financing. Changes to these inputs and assumptions could have a significant impact on the measurement of the secured note liability. There is significant estimation uncertainty with respect to the application of the key assumptions in determining the fair value of the secured note liability. Refer to Note 12 for further information. Reclamation Liabilities The provision for asset retirement obligations is the best estimate of the present value of the future costs of reclaiming the environment that has been subject to disturbance through exploration activities or historical mining activities. The Company uses assumptions and evaluates technical conditions for each project that have inherent uncertainties, including changes to laws and practices and changes in the status of the site from time-to-time. The timing and cost of the rehabilitation is also subject to uncertainty. For the closed sites, these changes, if any, and changes in discount rates are charged directly to the consolidated statement of operations and comprehensive income (loss). The periodic unwinding of the discount is recognized in income as accretion expense included in finance costs in the consolidated statement of operations and comprehensive income (loss). Contingencies The Company funds certain of its exploration expenditures, from time-to-time, with the proceeds from the issuance of flow-through shares and renounces, to subscribers, the expenditures which it determines to be Canadian Exploration Expenses (“CEE”). The Canada Revenue Agency (“CRA”) has disputed the eligibility of certain types of expenditures within the years 2014 to 2016. The Company strongly disagrees with their position and intends to fully defend the Company’s tax filings. No provision has been recorded related to the contingent taxes as the Company does not consider it probable that there will ultimately be an amount payable. D. Mineral interests, property and equipment (i) Mineral interests Mineral resource properties are carried at cost. The Company considers exploration and development costs and expenditures to have the characteristics of property and equipment and, as such, the Company capitalizes all exploration costs, which include acquisition costs, advance royalties, holding costs, field exploration and field supervisory costs and all costs associated with exploration and evaluation activities relating to specific properties as incurred, until those properties are determined to be economically viable for mineral production. General and administrative costs are only included in the measurement of exploration and evaluation costs where they are related directly to activities in a particular area of interest. The fair value of any recoveries from the disposition or optioning of a mineral property is credited to the carrying value of mineral properties. Once a project has been established as commercially viable and technically feasible, related development expenditures are capitalized. This includes costs incurred in preparing the site for mining operations. Capitalization ceases when the mine is capable of operating as intended by management. The actual recoverable value of capitalized expenditures for mineral properties and deferred exploration costs will be contingent upon the discovery of economically viable reserves and the Company’s financial ability at that time to fully exploit these properties or determine a suitable plan of disposition. When a decision is made to proceed with development in respect of a particular area of interest, the relevant exploration and evaluation asset is tested for impairment, reclassified to development properties, and then amortized over the life of the reserves associated with the area of interest once mining operations have commenced. (ii) Construction in progress Construction in progress includes power infrastructure, camps, bridges, and roads related to early infrastructure development at KSM. Costs are not depreciated until the underlying assets are ready for use as intended by management. (iii) Equipment Equipment located at project site are earth moving equipment, vehicles and other equipment used in the early infrastructure development at KSM. To the extent that the Company utilizes its own equipment for the activities which are capitalized for the mineral properties or the construction in progress, the associated depreciation is capitalized to those assets. (iv) Capitalized borrowing costs Borrowing costs are capitalized and allocated specifically to qualifying assets when funds have been borrowed, either to specifically finance a project or for general borrowings during the period of construction. Qualifying assets are defined as assets that require more than nine months to be brought to the location and condition intended by management. Capitalization of borrowing costs ceases when such assets are ready for their intended use. E. Depreciation Effective from the point an asset is available for its intended use, property and equipment are depreciated using the straight-line method over the estimated economic life of the asset. Estimated useful lives normally vary from three to fifteen years for equipment to a maximum of forty years for buildings. During the development phase, depreciation expense related to the right of use assets and property and equipment is recapitalized to the construction in progress pool. Residual values, useful lives and depreciation methods are reviewed at least annually and adjusted if appropriate. The impact of changes to the estimated useful lives, depreciation method or residual values is accounted for prospectively. F. Leasing arrangements Leases are recognized as a right-of-use (“ROU”) asset and a corresponding liability at the date at which the leased asset is available for use by the Company. Each lease payment is allocated between the liability and finance cost. The finance cost is charged to profit or loss over the lease period. The ROU asset is depreciated over the shorter of the asset’s useful life and the lease term on a straight-line basis. Payments associated with short-term leases and leases of low-value assets are recognized on a straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less. G. Impairment and reversal of impairment (i) Financial assets Financial assets measured at amortized cost are reviewed for impairment at each reporting date to determine whether there is any objective evidence of impairment. A financial asset is considered to be impaired if objective evidence, that can be estimated reliably, indicates that one or more events have had a negative effect on the estimated future cash flows of that asset. An impairment charge in respect of a financial asset measured at amortized cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the original effective interest rate. A prior period impairment charge is reviewed for possible reversal of impairment whenever an event or change in circumstance indicates the impairment may have reversed. If it has been determined that the impairment has reversed, the carrying amount of the asset is increased to its recoverable amount to a maximum of the carrying amount that would have been determined had no impairment charge been recognized in prior periods. Impairment charge reversals are recognized in the Consolidated statement of operations and comprehensive income (loss). (ii) Non-financial assets The carrying value of the Company’s mineral interests is assessed for impairment when indicators of such impairment exist. Indicators may include the loss of the right to explore in the area; the Company deciding not to continue exploring or incur substantial additional expenditures on the project; or it is determined that the carrying amount of the project is unlikely to be recovered by its development or sale. If any indication of impairment exists, an estimate of the asset’s recoverable amount is calculated to determine the extent of the impairment loss, if any. The recoverable amount is determined as the higher of the fair value less costs of disposal for the asset and the asset’s value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. Impairment is determined on an asset by asset basis, whenever possible. If it is not possible to determine impairment on an individual asset basis, then impairment is considered on the basis of a cash generating unit (“CGU”). CGUs represent the lowest level for which there are separately identifiable cash inflows that are largely independent of the cash flows from other assets or other group of assets. If the carrying amount of the asset exceeds its recoverable amount, the asset is impaired, and an impairment loss is charged immediately to comprehensive loss within the consolidated statements of operations and comprehensive income (loss) so as to reduce the carrying amount to its recoverable amount. An assessment is made at each reporting date as to whether there is any indication that previously recognized impairment losses may no longer exist or may have decreased. If such indication exists, the Company makes an estimate of the recoverable amount. A previously recognized impairment loss is reversed only if there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognized. If this is the case, the carrying amount of the asset is increased to its recoverable amount. The increased amount cannot exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset in prior years. Such reversal is recognized in the consolidated statements of operations and comprehensive income (loss). H. Reclamation liabilities Provisions for environmental restoration are recognized when: (i) the Company has a present legal or constructive obligation as a result of past exploration, development or production events; (ii) it is probable that an outflow of resources will be required to settle the obligation; and (iii) the amount can be reliably estimated. Provisions do not include obligations which are expected to arise from future disturbance. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation incorporating risks specific to the obligation using a pre-tax rate that reflects current market assessments of the time value of money. When estimates of obligations are revised, the present value of the changes in obligations is recorded in the period by a change in the obligation amount and a corresponding adjustment to the carrying amount of the related property. For locations where mining activities have ceased, the changes to obligations are charged directly to the consolidated statements of operations and comprehensive income (loss). The amortization or ‘unwinding’ of the discount applied in establishing the net present value of provisions due to the passage of time is charged to the consolidated statements of operations and comprehensive income (loss) in each accounting period. The ultimate cost of environmental remediation is uncertain and cost estimates can vary in response to many factors including changes to the relevant legal requirements, the emergence of new restoration techniques or experience at other mine sites. The expected timing of expenditure can also change, for example in response to changes in ore reserves or production rates. As a result, there could be significant adjustments to the provisions for restoration and environmental cleanup, which would affect future financial results. Funds on deposit with third parties provided as security for future reclamation costs are included in reclamation deposits on the statement of financial position. I. Income taxes Income tax expense comprises current and deferred tax. Current and deferred tax are recognized in profit or loss except to the extent that it relates to a business combination or items recognized directly in equity. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. Deferred tax is recognized using the asset and liability method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is measured at the rates that are expected to be applied to temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date. Deferred tax is not recognized for the following temporary differences; the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss, and differences relating to investments in subsidiaries and jointly controlled entities to the extent that it is probable that they will not reverse in the foreseeable future where the timing of the reversal of the temporary differences can be controlled by the parent. In addition, deferred tax is not recognized for taxable temporary differences arising on the initial recognition of goodwill which is not deductible for tax purposes. A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which the asset can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized. The Company has certain non-monetary assets and liabilities for which the tax reporting currency is different from its functional currency. Any translation gains or losses on the remeasurement of these items at current exchange rates versus historic exchange rates that give rise to a temporary difference is recorded as a deferred tax asset or liability. J. Stock-based compensation (options and restricted share units) The Company applies the fair value method for stock-based compensation and other stock-based payments. The fair value of options is valued using the Black Scholes option-pricing model and other models for the two-tiered options and restricted share units as may be appropriate. The grant date fair value of stock-based payment awards granted to employees is recognized as an employee expense, with a corresponding increase in equity, over the period that the employees unconditionally become entitled to the awards. The amount recognized as an expense is adjusted to reflect the number of awards for which the related service and non-market vesting conditions are expected to be met, such that the amount ultimately recognized as an expense is based on the number of awards that meet the related service and non-market performance conditions at the vesting date (Note 13). The Company reviews estimated forfeitures of options on an ongoing basis. The factors affecting stock-based compensation include estimates of when stock options might be exercised share price volatility and the assessment of the probability and timing of those instruments that have non-market performance vesting criteria. The timing for exercise of options is out of the Company’s control and will depend upon a variety of factors, including the market value of the Company’s shares and financial objectives of the share-based instrument holders. The Company uses historical data to determine volatility in accordance with appropriate fair value methodology. However, the future volatility is uncertain, and the model has its limitations. K. Flow-through shares The Company finances a portion of its exploration activities through the issuance of flow-through common shares. The tax deductibility of qualifying expenditures is transferred to the investor purchasing the shares. Consideration for the transferred deductibility of the qualifying expenditures is often paid through a premium price over the market price of the Company’s shares. The Company reports this premium as a liability on the statement of financial position and the balance is reported as share capital. At each reporting period, and as qualifying expenditures have been incurred, the liability is reduced on a proportionate basis and income is recognized in the consolidated statements of operations and comprehensive income (loss). L. Net earnings (loss) per common share Basic earnings (loss) per common share is computed based on the weighted average number of common shares outstanding during the year. The Company uses the treasury stock method for calculating diluted earnings per share which assumes that stock options with an exercise price lower than the average quoted market price were exercised at the later of the beginning of the year, or time of issue and Restricted Share Units (“RSU”s). Stock options with an exercise price greater than the average quoted market price of the common shares are not included in the calculation of diluted earnings (loss) per share as the effect is anti-dilutive. M. Financial instruments The Company recognizes financial assets and financial liabilities on the date the Company becomes a party to the contractual provisions of the instruments. A financial asset is derecognized either when the Company has transferred substantially all the risks and rewards of ownership of the financial asset or when cash flows expire. A financial liability is derecognized when the obligation specified in the contract is discharged, canceled or expired. Certain financial instruments are recorded at fair value in the consolidated statement of financial position. Non-derivative financial instruments Non-derivative financial instruments are recognized initially at fair value plus attributable transaction costs, where applicable for financial instruments not classified as fair value through profit or loss (“FVTPL”). Subsequent to initial recognition, non-derivative financial instruments are classified and measured as described below. Financial assets at FVTPL Cash and cash equivalents and short-term deposits are classified as financial assets at FVTPL and are measured at fair value. Cash equivalents are short-term deposits with maturities of up to 90 days at the date of purchase. Short-term deposits consist of investments with maturities from 91 days to one year at the date of purchase. Convertible notes receivable are recorded at FVTPL. Financial assets at amortized cost Trade and other receivables are classified as and measured at amortized cost using the effective interest rate method, less impairment losses, if any. Financial assets at fair value through other comprehensive income The Company’s investments in equity marketable securities are designated as financial assets at fair value through other comprehensive income and are recorded at fair value on the trade date with directly attributable transaction costs included in the recorded amount. Subsequent changes in fair value are recognized in other comprehensive income. Non-derivative financial liabilities Accounts payable and accrued liabilities are accounted for at amortized cost, using the effective interest rate method. Secured note The Company has elected to account for its secured note liability and all embedded derivatives as a single financial liability. The change in fair value of the secured note liability is recognized in profit or loss. The change in the fair value related to the Company’s own credit risk is recorded through other comprehensive income (loss). N. Accounting pronouncements New accounting standards and interpretations issued and effective: Amendments to IAS 16 - Property, Plant and Equipment: Proceeds before Intended Use Amendments to IAS 16 were issued by the IASB in May 2020. The amendments prohibit deducting from the cost of an item of property, plant and equipment any proceeds from selling items produced while bringing that asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Instead, an entity recognizes the proceeds from selling such items, and the cost of producing those items, in the Consolidated Statements of Operations and Comprehensive Income. The Company adopted the amendments effective January 1, 2022. The application of these amendments did not have an impact on the Company’s consolidated financial statements. Accounting pronouncements issued but not yet effective: Certain pronouncements have been issued by the IASB that are mandatory for accounting periods after December 31, 2022: ● Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12 Income Taxes) effective for annual periods beginning on or after January 1, 2023 ● Definition of Accounting Estimates (Amendments to IAS 8) effective for annual periods beginning on or after January 1, 2023 ● Presentation of Financial Statements (Amendments to IAS 1 and IFRS Practice Statement 2) effective for annual periods beginning on or after January 1, 2023 ● Classification of Liabilities as Current or Non-current (Amendments to IAS 1) effective for annual periods beginning on or after January 1, 2024 ● Lease Liability in a Sale and Leaseback (Amendments to IFRS 16 Leases) effective for annual periods beginning on or after January 1, 2024. None of these pronouncements are expected to have a significant impact on the Company’s consolidated financial statements upon adoption. |
Cash and Cash Equivalents and S
Cash and Cash Equivalents and Short-Term Deposits | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Cash And Cash Equivalents Text Block Abstract | |
Cash and cash equivalents and short-term deposits | 4. Cash and cash equivalents and short-term deposits ($000s) December 31, December 31, Cash and cash equivalents 46,150 11,523 Short-term deposits 81,690 29,243 127,840 40,766 All of the cash and cash equivalents are held in a Canadian Schedule I bank. Short-term deposits consist of Canadian Schedule I bank guaranteed deposits and are cashable in whole or in part with interest at any time to maturity. Subsequent to December 31, 2022, the Company redeemed $80.4 million of short-term deposits. |
Amounts Receivable and Prepaid
Amounts Receivable and Prepaid Expenses | 12 Months Ended |
Dec. 31, 2022 | |
Amounts Receivable and Prepaid Expenses [Abstract] | |
Amounts receivable and prepaid expenses | 5. Amounts receivable and prepaid expenses ($000s) December 31, December 31, HST 4,247 1,698 Prepaid expenses and other receivables 3,973 8,328 8,220 10,026 |
Investments
Investments | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Investments Accounted For Using Equity Method Text Block Abstract | |
Investments | 6. Investments ($000s) January 1, Fair value Loss of Impairment Additions December 31, Current assets: Investments in marketable securities 3,367 329 - - - 3,696 Non-current assets: Investment in associate 2,429 - (206 ) (873 ) (a) 39 (b) 1,389 ($000s) January 1, Fair value Loss of Impairment Additions December 31, Current assets: Investments in marketable securities 3,826 (459 ) - - - 3,367 Non-current assets: Investment in associate 2,611 - (221 ) 39 (c) 2,429 (a) The Company accounts for its investment in Paramount, a publicly listed company, using the equity method. During the second quarter of 2022, the Company concluded that the fair value of its investment in Paramount, determined based on the closing share price on June 30, 2022, had declined significantly and recorded an impairment of $0.9 million (December 31, 2021- nil (b) In 2022, the Company received 55,322 common shares of Paramount for payment of interest on the secured convertible notes accrued between July 1, 2021 and June 30, 2022. Subsequent to December 31, 2022, the Company received 43,928 common shares of Paramount for payment of interest on the secured convertible notes accrued between July 1, 2022 and December 31, 2022. The accrued interest is classified as receivable from a related party as of December 31, 2022. (c) During the year ended December 31, 2021, the Company received 30,086 common shares of Paramount for payment of interest on the secured convertible notes accrued between July 1, 2020 and June 30, 2021. Refer to note 7 for details on convertible notes receivable. The Company holds common shares of several mining companies that were received as consideration for optioned mineral properties and other short-term investments, including one gold exchange traded receipt. These financial assets are recorded at fair value of $3.7 million (December 31, 2021 - $3.4 million) in the consolidated statements of financial position. At December 31, 2022, the Company revalued its holdings in its investments and recorded a fair value increase of $0.3 million in the statement of operations and comprehensive income (loss). Investment in associate relates to Paramount. As at December 31, 2022, the Company holds a 5.6% (December 31, 2021 – 6.4%) interest in Paramount for which it accounts using the equity method on the basis that the Company has the ability to exert significant influence through its representation on Paramount’s board of directors. During 2022, the Company recorded its proportionate share of Paramount’s net loss of $0.2 million (2020 – $0.2 million) within equity loss of associate on the consolidated statements of operations and comprehensive income (loss). As at December 31 2022, the carrying value of the Company’s investment in Paramount was $1.4 million (December 31, 2021 - $2.4 million). |
Convertible Notes Receivable
Convertible Notes Receivable | 12 Months Ended |
Dec. 31, 2022 | |
Convertible Notes Receivable [Abstract] | |
Convertible Notes Receivable | 7. Convertible notes receivable In September 2019, the Company participated in a private placement to purchase US$410,000, at face value, of secured convertible notes issued by Paramount. Each convertible note had an issue price of US$975 per US$1,000 face value with a four-year maturity. The Company purchased 410 convertible notes for a total of $0.5 million (US$399,750). The convertible notes bear interest at a rate of 7.5% per annum, payable semi-annually. At any time after the issuance of the convertible notes, the Company can convert all or any portion of the outstanding amount into common shares of Paramount at a price of US$1.00 per common share. The convertible notes receivable are recorded at fair value through profit or loss. The fair value of the convertible notes receivable is determined by using the Binomial Option Pricing model. As at December 31, 2022, the fair value of the convertible notes receivable was $0.6 million (December 31, 2021 - $0.6 million). The fair value was determined using the binomial option pricing model using the following assumptions: risk-free rate of 2.96%, 0.75 years expected remaining life of the convertible note, volatility of 52.6% based on Paramount stock price volatility, forfeiture rate of nil, and dividend yield of nil. As at December 31, 2021, the fair value of the convertible notes was determined using the binomial option pricing model using the following assumptions: risk-free rate of 0.91%, 1.75 years expected remaining life of the convertible note, volatility of 47% based on Paramount stock price volatility, forfeiture rate of nil, and dividend yield of nil. During 2022, the Company received 55,322 common shares of Paramount for payment of interest on the secured convertible notes accrued between July 2021 and June 2022. During 2021, the Company received 30,086 common shares of Paramount for payment of interest on the secured convertible notes accrued between July 2020 and June 2021. Subsequent to December 31, 2022, the Company received 43,928 common shares of Paramount for payment of interest on the secured convertible notes accrued and receivable as at December 31, 2022. The accrued interest is classified as receivable from a related party as of December 31, 2022. |
Long-Term Receivables
Long-Term Receivables | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Long-Term Receivables Explanatory [Abstract] | |
Long-term Receivables | 8. Long-term receivables ($000s) December 31, December 31, BC Hydro 1 38,500 - Canadian Exploration Expenses (Note 18) 9,337 9,172 British Columbia Mineral Exploration Tax Credit 2 3,866 3,866 51,703 13,038 1) The Company has paid $38.5 million to British Columbia Hydro and Power Authority (“BC Hydro”) as advance payments made pursuant to the Company signing a facilities agreement with BC Hydro covering the design and construction of facilities to supply construction phase hydro-sourced electricity to the KSM project. 2) During 2016, upon the completion of an audit of the application by tax authorities of the British Columbia Mineral Exploration Tax Credit (“BCMETC”) program, the Company was reassessed $3.6 million, including accrued interest for expenditures that the tax authority has categorized as not qualifying for the BCMETC program. The Company recorded a $3.6 million provision within non-trade payables and accrued expenses on the consolidated statements of financial position as at December 31, 2016 with a corresponding increase in mineral interests. In 2017 the Company filed an objection to the reassessment with the appeals division of the tax authorities and paid one-half of the accrued balance to the Receiver General and reduced the provision by $1.8 million. In 2019, the Company received a decision from the appeals division that the Company’s objection was denied, and the Company filed a Notice of Appeal with the British Columbia Supreme Court. The Attorney General of Canada replied to the facts and arguments in the Company’s Notice of Appeal and stated its position that the Company’s expenditures did not qualify for the BCMETC program. During the first quarter 2022, the Company completed discoveries with the Department of Justice and will continue to move the appeal process forward as expeditiously as possible. The Company intends to continue to fully defend its position. Based on the facts and circumstances of the Company’s objection, the Company concludes that it is more likely than not that it will be successful in its objection. As at December 31, 2022, the Company has paid $1.6 million to the Receiver General, and the Canada Revenue Agency (CRA) has withheld $2.3 million of HST credits due to the Company that would fully cover the residual balance, including interest, should the Company be unsuccessful in its challenge. The amount recorded in long-term receivables as of December 31, 2022 of $3.9 million includes the initial reassessment of $3.6 million, plus accrued interest. |
Mineral Interests, Property and
Mineral Interests, Property and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Mineral Interests, Property and Equipment [Abstract] | |
Mineral Interests, Property and Equipment | 9. Mineral Interests, Property and Equipment ($000s) Mineral Construction Property & equipment 1 Right-of-use 1 Total Cost As at January 1, 2021 591,446 - - 307 591,753 Additions 40,559 27,061 3,080 100 70,800 As at December 31, 2021 632,005 27,061 3,080 407 662,553 Additions 55,069 120,287 43,177 2,030 220,563 As at December 31, 2022 687,074 147,348 46,257 2,437 883,116 Accumulated Depreciation As at January 1, 2021 - - - 72 72 Depreciation expense - - 117 85 202 As at December 31, 2021 - - 117 157 274 Depreciation expense 1 - - 953 392 1,345 As at December 31, 2022 - - 1,070 549 1,619 Net Book Value As at December 31, 2021 632,005 27,061 2,963 250 662,279 As at December 31, 2022 687,074 147,348 45,187 1,888 881,497 1) Depreciation expense related to camps, equipment, and right-of-use assets associated with the KSM construction is capitalized to construction in progress. Mineral interests, property and equipment additions by project are as follows. Year ended December 31, 2022 ($000s) January 1, Mineral interests Construction in progress Property & equipment Right-of-use assets Total Additions December 31, Additions KSM 1 502,015 39,985 120,287 43,177 1,726 205,175 707,190 Courageous Lake 77,176 823 - - - 823 77,999 Iskut 41,779 8,125 - - - 8,125 49,904 Snowstorm 31,471 3,091 - - - 3,091 34,562 3 Aces 9,034 3,045 - - - 3,045 12,079 Grassy Mountain 771 - - - - - 771 Corporate 307 - - - 304 304 611 662,553 55,069 120,287 43,177 2,030 220,563 883,116 Year ended December 31, 2021 ($000s) January 1, Mineral interests Construction in progress Property & equipment Right-of-use assets Total Additions December 31, Additions KSM 2 444,167 27,607 27,061 3,080 100 57,848 502,015 Courageous Lake 76,522 654 - - - 654 77,176 Iskut 37,949 3,830 - - - 3,830 41,779 Snowstorm 24,924 6,547 - - - 6,547 31,471 3 Aces 7,113 1,921 - - - 1,921 9,034 Grassy Mountain 771 - - - - - 771 Corporate 307 - - - - - 307 591,753 40,559 27,061 3,080 100 70,800 662,553 1) Construction in progress additions at KSM includes $14.7 million of capitalized borrowing costs. 2) $3.9 million of costs related to the BCMETC audit (refer to Note 8) were reclassified from mineral interests to amounts receivable. Continued exploration of the Company’s mineral properties is subject to certain lease payments, project holding costs, rental fees and filing fees. a) KSM In 2001, the Company purchased a 100% interest in contiguous claim blocks in the Skeena Mining Division, British Columbia. The vendor maintains a 1% net smelter royalty interest on the project, subject to maximum aggregate royalty payments of $4.5 million. The Company is obligated to purchase the net smelter royalty interest for the price of $4.5 million in the event that a positive feasibility study demonstrates a 10% or higher internal rate of return after tax and financing costs. In 2011 and 2012, the Company completed agreements granting a third party an option to acquire a 2% net smelter royalty on all gold and silver production sales from KSM for a payment equal to the lesser of $160 million or US$200 million. The option is exercisable for a period of 60 days following the announcement of receipt of all material approvals and permits, full project financing and certain other conditions for the KSM Project. In December 2020, the Company purchased the Snowfield (renamed East Mitchell) property from Pretium Resources Inc. The East Mitchell property, located in the same valley that hosts KSM’s Mitchell deposit, was purchased for US$100 million ($127.5 million) in cash, a 1.5% net smelter royalty on East Mitchell property production, and a conditional payment of US$20 million, payable following the earlier of (i) commencement of commercial production from East Mitchell property, and (ii) announcement by the Company of a bankable feasibility study which includes production of reserves from the East Mitchell property. US$15 million of the conditional payment can be credited against future royalty payments. Additions to mineral interests of $40 million (2021 - $27.6 million) consisted of costs incurred to carry out the Company’s environmental, technical support, exploration and drilling programs at KSM. Additions to construction in progress consisted of $104.6 million (2021- $27.0 million) of KSM assets under construction costs, $14.7 million (2021- nil Additions to property and equipment consisted of $37.8 million (2021- nil nil b) Courageous Lake In 2002, the Company purchased a 100% interest in the Courageous Lake gold project from Newmont Canada Limited and Total Resources (Canada) Limited. The Courageous Lake gold project consists of mining leases located in Northwest Territories of Canada. c) Iskut On June 21, 2016, the Company purchased 100% of the common shares of SnipGold Corp. which owns the Iskut Project, located in northwestern British Columbia. In 2022, total mineral interests additions at Iskut were $8.1 million, of which $6.1 million was related to exploration activities, $1.0 million was related to environmental costs, and $0.9 million was related to project payroll costs. Additions to mineral interests in 2022 consisted of costs to carry out the Company’s exploration and drilling program at Iskut. d) Snowstorm In 2017, the Company purchased 100% of the common shares of Snowstorm Exploration LLC which owns the Snowstorm Project, located in northern Nevada. In connection with the acquisition, the Company has agreed to make a conditional cash payment of US$2.5 million if exploration activities at the Snowstorm Project result in defining a minimum of five million ounces of gold resources compliant with National Instrument 43-101 and a further cash payment of US$5.0 million on the delineation of an additional five million ounces of gold resources. In 2022, total mineral interests additions at Snowstorm were $3.1 million, which consisted of costs incurred to carry out the Company’s exploration and drill program. e) 3 Aces In 2020, the Company acquired a 100% interest in the 3 Aces gold project in the Yukon, Canada from Golden Predator Mining Corp. through the issuance of 300,000 common shares valued at $6.6 million. Should the project attain certain milestones, including the confirmation of a National Instrument 43-101 compliant mineral resource of 2.5 million ounces of gold, the Company will pay an additional $1 million, and upon confirmation of an aggregate mineral resource of 5 million ounces of gold, the Company will pay an additional $1.25 million. In 2022, total mineral interests additions at 3 Aces were $3.0 million, which consisted of costs incurred to carry out the Company’s exploration and drill program. f) Grassy Mountain In 2013, the Company sold 100% of its interest in the Grassy Mountain Project with a net book value of $0.8 million retained within mineral properties, related to the option to either receive, at the discretion of the Company, a 10% net profits interest royalty or a $10 million cash payment. Settlement is due four months after the later of: the day that the Company receives a feasibility study on the project; and the day that the Company is notified that permitting and bonding for the mine is in place. The current owner of the Grassy Mountain Project is Paramount who completed a feasibility study in 2020 but they have not notified the Company that permitting and bonding for the mine is in place. |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Accounts Payable and Accrued Liabilities Explanatory [Abstract] | |
Accounts payable and accrued liabilities | 10. Accounts payable and accrued liabilities ($000s) December 31, December 31, Trade payables 15,686 10,190 Non-trade payables and accrued expenses 27,270 1,975 42,956 12,165 1) Non-trade payables and accrued expenses include $26.3 million of accrued expenses related to construction at KSM. |
Provision for Reclamation Liabi
Provision for Reclamation Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Provision for Reclamation Liabilities [Abstract] | |
Provision for reclamation liabilities | 11. Provision for reclamation liabilities ($000s) December 31, December 31, Beginning of the period 8,442 6,164 Disbursements (4,519 ) (3,320 ) Environmental rehabilitation expense 6,851 5,515 Accretion 72 83 End of the period 10,846 8,442 Provision for reclamation liabilities – current 4,343 3,680 Provision for reclamation liabilities – long-term 6,503 4,762 10,846 8,442 The estimate of the provision for reclamation obligations, as at December 31, 2022, was calculated using the estimated discounted cash flows of future reclamation costs of $10.8 million (December 31, 2021 - $8.4 million) and the expected timing of cash flow payments required to settle the obligations between 2022 and 2026. As at December 31, 2022, the undiscounted future cash outflows are estimated at $11.5 million (December 31, 2021 - $8.6 million) primarily over the next three years. The nominal discount rate used to calculate the present value of the reclamation obligations was 4.07% at December 31, 2022 (0.9% - December 31, 2021). For the year ended December 31, 2022, reclamation disbursements amounted to $4.5 million (2021 - $3.3 million). In 2021, the Company updated the closure plan for the Johnny Mountain mine site and charged an additional $5.4 million of rehabilitation expenses to the consolidated statements of operations and comprehensive income (loss). In 2022, the Company updated the closure plan for the Johnny Mountain mine site and charged an additional $6.6 million of rehabilitation expenses to the consolidated statements of operations and comprehensive income (loss). Expenditures include the estimated costs for the closure of all adits and vent raises, removal of the mill and buildings, treatment of landfills and surface water management as well as ongoing logistics, freight and fuel costs. In 2022, the Company placed $5.4 million on deposit as security for the reclamation obligations at KSM. As at December 31, 2022, the Company has placed a total of $20.6 million (December 31, 2021 - $15.2 million) on deposit with financial institutions or with government regulators that are pledged as security against reclamation liabilities. The deposits are recorded on the consolidated statements of financial position as reclamation deposit. As at December 31, 2022, the Company had $7.9 million (December 31, 2021, $3.0 million) of uncollateralized surety bond, issued pursuant to arrangements with an insurance company, in support of environmental closure costs obligations related to the KSM project. |
Secured Note Liability
Secured Note Liability | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Borrowings Text Block Abstract | |
Secured note liability | 12. Secured note liability On February 25, 2022, the Company, through its wholly-owned subsidiary, KSM Mining ULC (“KSMCo”) signed a definitive agreement to sell a secured note (“secured note”) that is to be exchanged at maturity for a silver royalty on its 100% owned KSM Project (“KSM”) to institutional investors (“Investors”) for US$225 million. The transaction closed on March 24, 2022. The key terms of the secured note include: ● When the secured note matures, the Investors will use all of the principal amount repaid on maturity to purchase a 60% gross silver royalty (the “Silver Royalty”) maturity occurs upon the first to occur of: a) Commercial production being achieved at KSM; and b) Either the 10-year anniversary, or if the Environmental Assessment Certificate (“EAC”) expires and the Investors do not exercise their right to put the secured note to the Company, the 13-year anniversary of the issue date of the secured note. ● Prior to its maturity, the secured note bears interest at 6.5% per annum, payable quarterly in arrears. The Company can elect to satisfy interest payments in cash or by delivering common shares. ● The Company has the option to buyback 50% of the Silver Royalty, once exchanged on or before 3 years after commercial production has been achieved, for an amount that provides the Investors a minimum guaranteed annualized return. ● If project financing to develop, construct and place KSM into commercial production is not in place by the fifth anniversary from closing, the Investors can put the secured note back to the Company for US$232.5 million, with the Company able to satisfy such amount in cash or by delivering common shares at its option. This right expires once such project financing is in place. If the Investors exercise this put right, the Investors’ right to purchase the Silver Royalty terminates. ● If KSM’s EAC expires at anytime while the secured note is outstanding, the Investors can put the secured note back to the Company for US$247.5 million at any time over the following nine months, with the Company able to satisfy such amount in cash or by delivering common shares at its option. If the Investors exercise this put right, the Investors’ right to purchase the Silver Royalty terminates. ● If commercial production is not achieved at KSM prior to the tenth anniversary from closing, the Silver Royalty payable to the Investors will increase to a 75% gross silver royalty (if the EAC expires during the term of the secured note and the corresponding put right is not exercised by the Investors, this uplift will occur at the thirteenth anniversary from closing). ● No amount payable shall be paid in common shares if, after the payment, any of the Investors would own more than 9.9% of the Company’s outstanding shares. ● The Company’s obligations under the secured note are secured by a charge over all of the assets of KSMCo and a limited recourse guarantee from the Company secured by a pledge of the shares of KSMCo. A number of the above noted options within the agreement represent embedded derivatives. Management has elected to not separate these embedded derivatives from the underlying host secured note, and instead account for the entire secured note as a financial liability at fair value through profit or loss. The Company entered into the loan commitment within the scope of IFRS 9 ‘Financial Instruments’ on February 25, 2022 related to the secured note, as at that date, the Company and the Investors were committed under pre-specified terms and conditions to complete the transaction. The loan commitment was initially recognized at a fair value of US$225 million. Upon funding of the secured note on March 24, 2022, the loan commitment was settled with no gain or loss recognized. The secured note was recognized at its estimated fair value at initial recognition of $282.3 million (US$225 million) using a discounted cash flow model with a Monte Carlo simulation. This incorporated several scenarios and probabilities of the EAC expiring, achieving commercial production and securing project financing, forecasted silver prices and the discount rates. During the year ended December 31, 2022, the fair value of the secured note decreased, and the Company recorded $36.7 million gain on the remeasurement. The following inputs and assumptions were used in the determination of fair value: Inputs and assumptions March 24, December 31, Weighted Average Life 1 23.5 years 44.9 years Forecast silver production in thousands of ounces 105,778 166,144 Future silver price US$ 28.96 to US$35.42 US$ 29.38 to US$110.51 Risk-free rate 2.5% 3.4% Credit spread 5.2% 5.3% Volatility 60% 60% Silver royalty discount factor 7.1% 8.6% 1) Weighted average life reflects the revised silver forecast production schedule contained in the recently filed KSM updated Preliminary Feasibility Study (“PFS”) and Preliminary Economic Assessment (“PEA”) for the KSM project filed in the second quarter of 2022 The carrying amount for the secured note is as follows: ($000s) Secured Note Fair value at inception 282,263 Add (deduct): Unrealized change in fair value (39,879) Foreign currency translation loss 21,157 Carrying value and fair value on December 31, 2022 263,541 Sensitivity Analysis: For the fair value of the secured note, reasonably possible changes at the reporting date to one of the significant inputs, holding other inputs constant, would have the following effects: Key Inputs Inter-relationship between significant inputs and fair value measurement Increase (decrease) (millions) Key observable inputs The estimated fair value would increase (decrease) if: ● Silver price forward curve ● Future silver prices were 10% higher $ 9.7 ● Future silver prices were 10% lower $ (9.8 ) ● Discount rates (7.6% - 9.6%) ● Discount rates were 1% higher $ (16.1 ) ● Discount rates were 1% lower $ 18.7 Key unobservable inputs ● Forecasted silver production ● Silver production indicated silver ounces were 10% higher $ 9.7 ● Silver production indicated silver ounces were 10% lower $ (9.8 ) |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Shareholders Explanatory [Abstract] | |
Shareholders’ equity | 13. Shareholders’ equity The Company is authorized to issue an unlimited number of preferred shares and common shares with no par value. No preferred shares have been issued or were outstanding at December 31, 2022 or December 31, 2021. The Company manages its capital structure and makes adjustments to it, based on the funds available to the Company, in order to support the acquisition, exploration and development of mineral properties. The Board of Directors does not establish quantitative return on capital criteria for management, but rather relies on the expertise of the Company’s management to sustain future development of the business. The properties in which the Company currently has an interest are in the exploration stage, as such the Company is dependent on external financing to fund its activities. In order to carry out the planned exploration and pay for administrative costs, the Company will spend its existing working capital and raise additional amounts as needed. Management reviews its capital management approach on an ongoing basis and believes that this approach, given the relative size of the Company, is reasonable. There were no changes in the Company’s approach to capital management during 2022. The Company considers its capital to be share capital, stock-based compensation, warrants, contributed surplus and deficit. The Company is not subject to externally imposed capital requirements. a) Equity financings During the first quarter of 2021, the Company entered into an agreement with two securities dealers, for an At-The-Market offering program, entitling the Company, at its discretion, and from time to time, to sell up to US$75 million in value of common shares of the Company. This program was in effect until the Company’s US$775 million Shelf Registration Statement, that expired in December 2022, was replaced with a new US$750 million the same month. Subsequent to the year end, a US$100 million prospectus supplement was filed and the program was renewed at that time.In 2021, the Company issued 2,242,112 shares, at an average selling price of $22.71 per share, for net proceeds of $49.9 million under the Company’s At-The-Market offering. In 2022, the Company issued 998,629 shares, at an average selling price of $22.82 per share, for net proceeds of $22.3 million under the Company’s At-The-Market offering. Subsequent to December 31, 2022, the Company entered into a new agreement with two securities dealers, for an At-The-Market offering program, entitling the Company, at its discretion, and from time to time, to sell up to US$100 million in value of common shares of the Company. This program can be in effect until the Company’s US$750 million Shelf Registration Statement expires in 2025. Subsequent to December 31, 2022, the Company issued 313,666 shares, at an average selling price of $18.26 per share, for net proceeds of $5.6 million under the Company’s At-The-Market offering. In December 2022, the Company issued a total of 675,400 flow-through common shares at an average $22.24 per common share for aggregate gross proceeds of $15.0 million. The Company committed to renounce its ability to deduct qualifying exploration expenditures for the equivalent value of the gross proceeds of the flow-through financing and transfer the deductibility to the purchasers of the flow-through shares. The effective date of the renouncement was December 31, 2022. At the time of issuance of the flow-through shares, $4.2 million premium was recognized as a liability on the consolidated statements of financial position. In June 2021, the Company issued 350,000 flow-through common shares at $28.06 per common share for aggregate gross proceeds of $9.8 million. The Company committed to renounce its ability to deduct qualifying exploration expenditures for the equivalent value of the gross proceeds of the flow-through financing and transfer the deductibility to the purchasers of the flow-through shares. The effective date of the renouncement was December 31, 2021. At the time of issuance of the flow-through shares, $1.5 million premium was recognized as a liability on the consolidated statements of financial position. During 2021, the Company incurred $1.1 million of qualifying exploration expenditures and $0.2 million of the premium was recognized through other income on the consolidated statements of operations and comprehensive income (loss). During 2022, the Company incurred $8.7 million of qualifying exploration expenditures and the remaining $1.3 million of the premium was recognized through other income on the consolidated statements of operations and comprehensive income (loss). In June 2020, the Company issued 345,000 flow-through common shares at $32.94 per common share for aggregate gross proceeds of $11.4 million. The Company committed to renounce its ability to deduct qualifying exploration expenditures for the equivalent value of the gross proceeds of the flow-through financing and transfer the deductibility to the purchasers of the flow-through shares. The effective date of the renouncement was December 31, 2020. In accordance with draft legislation released on December 16, 2020 in relation to the COVID-19 pandemic, a 12-month extension was provided to the normal timelines in which the qualifying exploration expenditures should be incurred. At the time of issuance of the flow-through shares, $3.9 million premium was recognized as a liability on the consolidated statements of financial position. During 2020, the Company incurred $4.7 million of qualifying exploration expenditures and $1.6 million of the premium was recognized through other income on the consolidated statements of operations and comprehensive income (loss). During 2021, the Company incurred $6.5 million of qualifying exploration expenditures and $2.2 million of the premium was recognized through other income on the consolidated statements of operations and comprehensive income (loss). During the first quarter of 2022, the Company incurred $0.2 million of qualifying exploration expenditures and the remaining $0.1 million of the premium was recognized through other income on the consolidated statements of operations and comprehensive income (loss). b) Stock options and restricted share units The Company provides compensation to directors and employees in the form of stock options and RSUs. Pursuant to the Share Option Plan, the Board of Directors has the authority to grant options, and to establish the exercise price and life of the option at the time each option is granted, at a price not less than the closing price of the common shares on the Toronto Stock Exchange on the date of the grant of such option and for a period not exceeding five years. All exercised options are settled in equity. Pursuant to the Company’s RSU Plan, the Board of Directors has the authority to grant RSUs, and to establish terms of the RSUs including the vesting criteria and the life of the RSU. Stock option and RSU transactions were as follows: Options RSUs Total Number of Options Weighted Average Exercise Price ($) Amortized Value of options ($000s) Number of RSUs Amortized Value of RSUs ($000s) Stock-based Compensation ($000s) Outstanding January 1, 2022 1,023,334 14.61 8,125 173,800 572 8,697 Granted - - - 320,266 187 187 Exercised option or vested RSU (540,834 ) 13.54 (3,974 ) (148,800 ) (3,172 ) (7,146 ) Expired (5,000 ) 13.14 (34 ) - - (34 ) Amortized value of stock-based compensation - - - - 2,951 2,951 Outstanding at December 31, 2022 477,500 15.85 4,117 345,266 538 4,655 Exercisable at December 31, 2022 477,500 Options RSUs Total Number of Options Weighted Average Exercise Price ($) Amortized Value of options ($000s) Number of RSUs Amortized Value of RSUs ($000s) Stock-based Compensation ($000s) Outstanding at January 1, 2021 2,611,691 12.51 22,524 135,450 487 23,011 Granted - - - 173,800 573 573 Exercised option or vested RSU (1,585,501 ) 11.17 (14,370 ) (135,450 ) (3,413 ) (17,783 ) Expired (2,856 ) 6.30 (37 ) - - (37 ) Amortized value of stock-based compensation - - 8 - 2,925 2,933 Outstanding at December 31, 2021 1,023,334 14.61 8,125 173,800 572 8,697 Exercisable at December 31, 2021 1,023,334 The outstanding share options at December 31, 2022 expire at various dates between October 2023 and June 2024. A summary of options outstanding, their remaining life and exercise prices as at December 31, 2022 is as follows: Options Outstanding Options Exercisable Exercise price Number Remaining Number $ 16.94 50,000 10 months 50,000 $ 15.46 377,500 1 year 377,500 $ 17.72 50,000 1 year 6 months 50,000 477,500 477,500 During the year ended December 31, 2022, 540,834 options were exercised (2021 - 1,585,501) for proceeds of $3.9 million (2021 - $17.7 million) and 148,800 RSUs vested (2021 - 135,400). In total, 689,634 common shares were issued (2021 - 1,720,951). The weighted average share price at the date of exercise of options exercised during the year ended December 31, 2022 was $18.74 (2021 - $22.39). In December 2022, 310,266 RSUs were granted. Of these, 37,500 RSUs were granted to Board members, 232,266 RSUs were granted to members of senior management, and the remaining 40,500 RSUs were granted to other employees of the Company. The fair value of the grants, of $5.1 million, was estimated as at the grant date to be amortized over the expected service period of the grants. The expected service period ranges from six months to three years from the date of the grant and is dependent on certain corporate objectives being met. Of the $5.1 million fair value of the grants, $0.1 million was amortized during the fourth quarter of 2022, and the remaining $5.0 million will be amortized over the remaining estimated service periods of the respective tranches. During the third quarter of 2022, 10,000 RSUs were granted to a Board member. Half of the RSUs vest on the first anniversary of the appointment and the remaining half on the second anniversary. The fair value of the grants, of $0.2 million, was estimated as at the grant date to be amortized over the expected service period of the grants. As at December 31, 2022, $0.1 million of the fair value of the grants was amortized. In December 2021, 123,800 RSUs were granted. Of these, 28,000 RSUs were granted to Board members, 75,200 RSUs were granted to members of senior management, and the remaining 20,600 RSUs were granted to other employees of the Company. The fair value of the grants, of $2.6 million, was estimated as at the grant date to be amortized over the expected service period of the grants. The expected service period of approximately four months from the date of the grant was dependent on certain corporate objectives being met. Of the $2.6 million fair value of the grants, $0.4 million was amortized during the fourth quarter 2021, and the remaining $2.2 million was amortized during the first quarter of 2022. During the second quarter of 2022, 128,800 RSUs were vested and 119,800 RSUs were exchanged for common shares of the Company. During the third and fourth quarter of 2021, 40,000 RSUs were granted to three new members of senior management. Half of the RSUs vest on the first anniversary of employment and the remaining half on the second anniversary. The fair value of the grants, of $0.9 million, was estimated at the grant date to be amortized over the expected service period of the grants. In 2022, 20,000 RSUs were vested, and as at December 31, 2022, $0.7 million of the fair value of the grants was amortized. During the second quarter of 2021, 10,000 RSUs were granted to a Board member. Half of the RSUs vested on the first anniversary of the appointment and the remaining half will vest on the second anniversary. The fair value of the grants, of $0.2 million, was estimated as at the grant date to be amortized over the expected service period of the grants. During the second quarter of 2022, 5,000 RSUs were vested, and as at December 31, 2022, $0.2 million of the fair value of the grants was amortized. c) Basic and diluted net income (loss) per common share Basic and diluted net loss attributable to common shareholders of the Company for the year ended December 31, 2022 was $7.4 million (2021 - $0.9 million net income). Earnings per share has been calculated using the weighted average number of common shares and common share equivalents issued and outstanding during the period. Stock options are reflected in diluted earnings per share by application of the treasury method. The following table details the weighted average number of outstanding common shares for the purpose of computing basic and diluted earnings per common share for the following periods: ($000s) December 31, December 31, Weighted average number of common shares outstanding 80,058,861 76,413,554 Dilutive effect of options - 1,023,334 Dilutive effect of RSUs - 163,800 80,058,861 77,600,688 For the year ended December 31, 2022, 427,500 stock options and 345,266 RSUs were not included in the calculation of diluted earnings per share since to include them would be anti-dilutive. |
Cash Flow Items
Cash Flow Items | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Cash Flow Statement Text Block Abstract | |
Cash Flow Items | 14. Cash flow items Adjustment for other non-cash items within operating activities: Year Ended ($000s) Notes December 31, December 31, Impairment of investment in associate 6 873 - Equity loss of associate 6 207 221 Unrealized gain on convertible notes receivable 7 (25) (104) Accrued interest income on convertible notes receivable 7 (39) (39) Depreciation 9 84 85 Finance costs, net 72 110 Effects of exchange rate fluctuation on cash and cash equivalents 7 (3,216) 184 (2,044 ) 457 |
Fair Value of Financial Assets
Fair Value of Financial Assets and Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Fair Value of Financial Assets and Liabilities Explanatory [Abstract] | |
Fair Value of Financial Assets and Liabilities | 15. Fair value of financial assets and liabilities Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy establishes three levels to classify the inputs to valuation techniques used to measure fair value. Level 1: Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Inputs are quoted prices in markets that are not active, quoted prices for similar assets or liabilities in active markets, inputs other than quoted prices that are observable for the asset or liability (for example, interest rate and yield curves observable at commonly quoted intervals, forward pricing curves used to value currency and commodity contracts, volatility measurements used to value option contracts and observable credit default swap spreads to adjust for credit risk where appropriate), or inputs that are derived principally from or corroborated by observable market data or other means. Level 3: Inputs are unobservable (supported by little or no market activity). The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. The Company’s fair values of financial assets and liabilities were as follows: December 31, 2022 ($000s) Carrying Amount Level 1 Level 2 Level 3 Total Fair Value Assets Cash and cash equivalents 46,150 46,150 - - 46,150 Short-term deposits 81,690 81,690 - - 81,690 Amounts receivable 6,260 6,260 - - 6,260 Investment in marketable securities 3,696 3,696 - - 3,696 Convertible notes receivable 631 - - 631 631 Long-term receivables 51,703 51,703 - - 51,703 190,130 189,499 - 631 190,130 Liabilities Accounts payable and accrued liabilities 42,956 42,956 - - 42,956 Secured note 263,541 - - 263,541 263,541 306,497 42,956 - 263,541 306,497 December 31, 2021 ($000s) Carrying Amount Level 1 Level 2 Level 3 Total Fair Value Assets Cash and cash equivalents 11,523 11,523 - - 11,523 Short-term deposits 29,243 29,243 - - 29,243 Amounts receivable and prepaid expenses 5,229 5,229 - - 5,229 Investment in marketable securities 3,367 3,367 - - 3,367 Convertible notes receivable 606 - - 606 606 Long-term receivables 13,038 13,038 - - 13,038 63,006 62,400 - 606 63,006 Liabilities Accounts payable and accrued liabilities 12,165 12,165 - - 12,165 12,165 12,165 - - 12,165 The carrying value of cash and cash equivalents, short-term deposits, amounts receivable and accounts payable and accrued liabilities approximate their fair values due to the short-term maturity of these financial assets and liabilities. The Company’s financial risk exposures and the impact on the Company’s financial instruments are summarized below: Credit Risk The Company’s credit risk is primarily attributable to short-term deposits, convertible notes receivable, and receivables included in amounts receivable and prepaid expenses. The Company has no significant concentration of credit risk arising from operations. The short-term deposits consist of Canadian Schedule I bank guaranteed notes, with terms up to one year but are cashable in whole or in part with interest at any time to maturity, for which management believes the risk of loss to be remote. Management believes that the risk of loss with respect to financial instruments included in amounts receivable and prepaid expenses to be remote. Liquidity Risk The Company’s approach to managing liquidity risk is to ensure that it will have sufficient liquidity to meet liabilities when due. As at December 31, 2022, the Company had cash and cash equivalents of $46.2 million and short-term deposits of $81.7 million (December 31, 2021 - $11.5 million and $29.2 million, respectively) for settlement of current financial liabilities of $47.3 million (December 31, 2021 - $12.2 million). Except for the secured note liability and the reclamation obligations, the Company’s financial liabilities primarily have contractual maturities of 30 days and are subject to normal trade terms. The Company’s ability to fund its operations and capital expenditures and other obligations as they become due is dependent upon market conditions. The following tables detail the Company’s expected remaining contractual cash flow requirements for its financial liabilities on repayment or maturity periods. The amounts presented are based on the contractual undiscounted cash flows and may not agree with the carrying amounts in the Consolidated Statements of Financial Position. ($000s) Less than 1 year 1-3 years 3-5 years Greater than 5 years Total Secured note including interest 19,808 39,616 39,616 164,501 263,541 Flow-through share expenditures 15,023 - - - 15,023 Lease obligation 669 834 106 92 1,701 35,500 40,450 39,722 164,593 280,265 As the Company does not generate cash inflows from operations, the Company is dependent upon external sources of financing to fund its exploration projects and on-going activities. If required, the Company will seek additional sources of cash to cover its proposed exploration and development programs at its key projects, in the form of equity financing and from the sale of non-core assets. Refer to Note 13 for details on equity financing. Market Risk (a) Interest Rate Risk Interest rate risk is the risk that the future cash flows of a financial instrument or its fair value will fluctuate because of changes in market interest rates. The secured note liability (Note 12) bears interest at a fixed rate of 6.5% per annum. The Company’s current policy is to invest excess cash in Canadian bank guaranteed notes (short-term deposits). The short-term deposits can be cashed in at any time and can be reinvested if interest rates rise. (b) Foreign Currency Risk The Company’s functional currency is the Canadian dollar and major purchases are transacted in Canadian and US dollars. The secure note liability and the related interest payments are denominated in US dollars. The Company has the option to pay the interest either in cash or in shares. The Company also funds certain operations, exploration and administrative expenses in the United States on a cash call basis using US dollar cash on hand or converted from its Canadian dollar cash. Management believes the foreign exchange risk derived from currency conversions is not significant to its operations and has not entered into any foreign exchange hedges. As at December 31, 2022, the Company had cash and cash equivalents, investment in associate, convertible notes receivable, loan receivable, reclamation deposits, accounts payable, accrued liabilities and secured note that are in US dollars. (c) Investment Risk The Company has investments in other publicly listed exploration companies which are included in investments. These shares were received as option payments on certain exploration properties the Company owns or has sold. In addition, the Company holds $3.6 million in a gold exchange traded receipt that is recorded on the consolidated statements of financial position in investments. The risk on these investments is significant due to the nature of the investment but the amounts are not significant to the Company. |
Corporate and Administrative Ex
Corporate and Administrative Expenses | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Corporate and Administrative Expenses Explanatory [Abstract] | |
Corporate and administrative expenses | 16. Corporate and administrative expenses ($000s) 2022 2021 Employee compensation 7,479 5,781 Stock-based compensation 3,138 3,506 Professional fees 2,591 1,828 Other general and administrative 2,882 2,264 16,090 13,379 |
Related party disclosures
Related party disclosures | 12 Months Ended |
Dec. 31, 2022 | |
Related party disclosures [Abstract] | |
Related party disclosures | 17. Related party disclosures Compensation to key management personnel of the Company: ($000s) 2022 2021 Compensation of directors: Directors’ fees 560 431 Stock-based compensation 675 704 1,235 1,135 Compensation of key management personnel: Salaries and consulting fees 7,892 5,773 Stock-based compensation 2,026 2,226 9,918 7,999 11,153 9,134 During year ended December 31, 2022 and 2021, there were no payments to related parties other than compensation paid to key management personnel. These transactions were in the normal course of operations and were measured at the exchange amount, which is the amount of consideration established and agreed to by the related parties. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Income Taxes Explanatory [Abstract] | |
Income taxes | 18. Income taxes ($000s) 2022 2021 Deferred tax expense (recovery) 8,268 4,630 8,268 4,630 Tax expense (recovery) recognized in other comprehensive income or directly in equity ($000s) 2022 2021 Financing costs - recognized in statement of equity (330 ) (438 ) Unrealized gain or loss on marketable securities - recognized in OCI 831 (61 ) 501 (499 ) In 2022, the Company recognized income tax expense of $8.3 million, primarily due to the deferred tax liability arising from the gain recognized on remeasurement of the fair value of the secured note liability, and from the renouncement of expenditures related to the June 2021 flow-through shares issued which are capitalized for accounting purposes. The income tax expense was partially offset by income tax recovery arising from the losses in the period. The income tax impact of the revaluation of the secured note liability that was recorded through other comprehensive income (loss) during 2022, of $0.05 million, was also recorded through other comprehensive income (loss). (a) Rate Reconciliation The provision for income taxes differs from the amount that would have resulted by applying the combined Canadian Federal, Ontario, British Columbia, Northwest Territories and Yukon statutory income tax rates of 26.68% (2021 - 26.63%). ($000s) 2022 2021 Earnings before income taxes 874 5,525 26.68 % 26.63 % Tax expense calculated Using statutory rates 233 1,471 Non-deductible items 2,280 303 Difference in foreign tax rates 103 (8 ) Change in deferred tax rates (116 ) (132 ) Movement in tax benefits not recognized 2,996 949 Impact of true-up of prior year balances 124 1 Renouncement of flow-through expenditures 2,525 2,020 Other 123 24 Income tax expense 8,268 4,630 (b) Deferred Income Tax The following table summarizes the significant components of deferred income tax assets and liabilities: ($000s) December 31, December 31, Deferred income tax assets: Property and equipment 565 292 Provision for reclamation liabilities 1,235 595 Financing costs 2,487 2,080 Non-capital loss carryforwards 38,255 33,098 Deferred income tax liabilities: Mineral interests (63,710 ) (59,229 ) Secured note (10,766 ) - Net deferred income tax liabilities (31,934 ) (23,164 ) (c) Unrecognized Deferred Tax Assets The company has not recognized deferred income tax assets in respect of the following tax effected deductible temporary differences: ($000s) December 31, December 31, Marketable securities 137 182 Loss carryforwards 834 798 Investment tax credits 1,481 1,481 Foreign tax credits 268 268 Mineral properties 437 140 Provision for reclamation liabilities 1,091 1,083 Deferred tax has not been recognized on the deductible temporary difference of $2.1 million (2021 - $3.2 million) relating to investments in subsidiaries as these amounts will not be distributed in the foreseeable future. The tax losses not recognized expire as per the amount and years noted below. The deductible temporary differences do not expire under the current tax legislation. Deferred tax assets have not been recognized in respect of these items because it is not probable that future taxable profit would be available against which the Company can utilize the benefits there from. (d) Income Tax Attributes As at December 31, 2022, the Company had the following income tax attributes to carry forward. ($000s) Expiry date Canadian non-capital losses 143,103 2042 Canadian capital losses 2,571 Indefinite Canadian tax basis of mineral interest 406,278 Indefinite US non-capital losses 480 2042 US tax basis of mineral interest 23,201 Indefinite |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Commitments and Contingencies Explanatory [Abstract] | |
Commitments and contingencies | 19. Commitments and contingencies Payments due by years ($000s) Total 2023 2024-25 2026-27 2028-29 Secured note – interest 138,656 19,808 39,616 39,616 39,616 Capital expenditure obligations 104,688 98,128 6,560 - - Flow-through share expenditures 15,023 15,023 - - - Mineral interests 5,782 826 1,652 1,652 1,652 Lease obligation 1,701 669 834 106 92 265,850 134,454 48,662 41,374 41,360 In 2022, the Company entered into a Facilities Agreement with BC Hydro covering the design and construction of facilities by BC Hydro to supply construction phase hydro-sourced electricity to the KSM project. The cost to complete the construction is estimated to be $32.8 million of which the Company has paid $11.7 million to BC Hydro and the remaining balance is due in 2023. In addition, the Facilities Agreement requires $54.2 million in security or cash from the Company for BC Hydro system reinforcement which is required to make the power available of which the Company has paid $21.2 million to BC Hydro and the balance is due in 2023. The $54.2 million system reinforcement security will be forgiven annually, typically over a period of less than 8 years, based on project power consumption. Subsequent to December 31, 2022, $43.7 million was paid to BC Hydro. Prior to its maturity, the secured note bears interest at 6.5%, or US$14.6 million per annum, payable quarterly in arrears. The Company can elect to satisfy interest payments in cash or by delivering common shares. Refer to Note 12 for details on the secured note. As previously disclosed in the Company’s prior years financial statements, in 2019 the Company received a notice from the CRA that it proposed to reduce the amount of expenditures reported as Canadian Exploration Expenses (CEE) for the three-year period ended December 31, 2016. The Company has funded certain of its exploration expenditures, from time-to-time, with the proceeds from the issuance of flow-through shares and renounced, to subscribers, the expenditures which it determined to be CEE. The notice disputes the eligibility of certain types of expenditures previously audited and approved as CEE by the CRA. The Company strongly disagrees with the notice and responded to the CRA auditors with additional information for their consideration. In 2020, the CRA auditors responded to the Company’s submission and, although accepting additional expenditures as CEE, reiterated that their position remains largely unchanged and subsequently issued reassessments to the Company reflecting the additional CEE expenditures accepted and $2.3 million of Part Xll.6 tax owing. The Company has been made aware that the CRA has reassessed certain investors who subscribed for the flow-through shares, reducing CEE deductions. Notice of objections to the Company’s and investors’ reassessments have been filed for all those that have been received and will be appealed to the courts, should the notice of objections be denied. The Company has indemnified the investors that subscribed for the flow-through shares. The potential tax indemnification to the investors is estimated to be $10.8 million, plus $2.9 million potential interest. No provision has been recorded related to the tax, potential interest, nor the potential indemnity as the Company and its advisors do not consider it probable that there will ultimately be an amount payable. During 2021 and 2022, the Company deposited $9.3 million into the accounts of certain investors with the Receiver General, in return for their agreement to object to their respective assessments and agreement to repay the Company the full amount deposited on their behalf upon resolution of the Company’s appeal. The deposits made has been recorded as long-term receivables on the statement of financial position as at December 31, 2022. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of measurement | A. Basis of measurement The consolidated financial statements have been prepared on the historical cost basis, except certain financial instruments described in note “M”, which are measured at fair value. |
Translation of foreign currencies | B. Translation of foreign currencies These consolidated financial statements are presented in Canadian dollars, which is the Company’s, and each of its subsidiaries’, functional currency. Foreign currency transactions are translated into Canadian dollars using the exchange rates prevailing at the dates of the transactions or valuation where items are re-measured. Foreign exchange gains and losses resulting from the settlement of such transactions are recognized in the consolidated statement of operations and comprehensive income (loss). Monetary assets and liabilities of the Company denominated in a foreign currency are translated into Canadian dollars at the rate of exchange at the statement of financial position date. Non-monetary assets and liabilities are translated at historical rates. Revenues and expenses are translated at average exchange rates prevailing during the period. Exchange gains and losses are included in the determination of profit or loss for the year. |
Critical accounting judgments and estimation uncertainty | C. Critical accounting judgments and estimation uncertainty In applying the Company’s accounting policies in conformity with IFRS, management is required to make judgments, estimates and assumptions about the carrying amounts of certain assets and liabilities. These estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Actual results may differ from these estimates. (i) Critical accounting judgments The following are the critical judgments that the Company has made in the process of applying the Company’s accounting policies and that have the most significant effect on the amounts recognized in the consolidated financial statements (refer to appropriate accounting policies for details). Mineral reserves and resources To calculate reserves and resources, the Company uses assumptions and evaluates technical, economic and geological conditions for each ore body. Measured grade of the ore and geotechnical considerations can have a significant effect on the carrying value of mineral properties and therefore the recoverability of costs. Future market prices for gold and copper and other commodities are also factored into valuation models. Changes to these factors can affect the recoverability of mineral properties and impairment. Impairment of mineral interests Mineral interests are tested for impairment when events or changes in circumstances indicate that the carrying amount may not be recoverable. When an indication of impairment exists, and the carrying amount of the mineral interest exceeds its estimated recoverable amount, the carrying value is written down to the recoverable amount and the loss is recognized in the statement of operations and comprehensive income (loss). Reclamation Liabilities The Company records legal and constructive obligations required to restore locations in the period in which the obligation is incurred with a corresponding increase in the carrying amount of the related property. For closed mines, changes to obligations are charged directly to the statement of operations and comprehensive income (loss). (ii) Key sources of estimation uncertainty Mineral properties The recoverability of the carrying value of mineral properties and associated deferred exploration expenses is based on market conditions for minerals, underlying mineral resources associated with the properties and future costs that may be required for ultimate realization through mining operations or by sale. The Company is in an industry that is dependent on a number of factors including environmental, legal and political risks, the existence of economically recoverable reserves, the ability of the Company and its subsidiaries to obtain necessary financing to complete the development, and future profitable production or the proceeds of disposition thereof. Secured note liability The Company measures the fair value of its secured note liability using a discounted cash flow model with a Monte Carlo simulation. Key assumptions into this model include future silver prices, discount rates, forecasted silver production, and probabilities of Environmental Assessment Certificate (“EAC”) expiry, achieving commercial production and securing project financing. Changes to these inputs and assumptions could have a significant impact on the measurement of the secured note liability. There is significant estimation uncertainty with respect to the application of the key assumptions in determining the fair value of the secured note liability. Refer to Note 12 for further information. Reclamation Liabilities The provision for asset retirement obligations is the best estimate of the present value of the future costs of reclaiming the environment that has been subject to disturbance through exploration activities or historical mining activities. The Company uses assumptions and evaluates technical conditions for each project that have inherent uncertainties, including changes to laws and practices and changes in the status of the site from time-to-time. The timing and cost of the rehabilitation is also subject to uncertainty. For the closed sites, these changes, if any, and changes in discount rates are charged directly to the consolidated statement of operations and comprehensive income (loss). The periodic unwinding of the discount is recognized in income as accretion expense included in finance costs in the consolidated statement of operations and comprehensive income (loss). Contingencies The Company funds certain of its exploration expenditures, from time-to-time, with the proceeds from the issuance of flow-through shares and renounces, to subscribers, the expenditures which it determines to be Canadian Exploration Expenses (“CEE”). The Canada Revenue Agency (“CRA”) has disputed the eligibility of certain types of expenditures within the years 2014 to 2016. The Company strongly disagrees with their position and intends to fully defend the Company’s tax filings. No provision has been recorded related to the contingent taxes as the Company does not consider it probable that there will ultimately be an amount payable. |
Mineral interests, property and equipment | D. Mineral interests, property and equipment (i) Mineral interests Mineral resource properties are carried at cost. The Company considers exploration and development costs and expenditures to have the characteristics of property and equipment and, as such, the Company capitalizes all exploration costs, which include acquisition costs, advance royalties, holding costs, field exploration and field supervisory costs and all costs associated with exploration and evaluation activities relating to specific properties as incurred, until those properties are determined to be economically viable for mineral production. General and administrative costs are only included in the measurement of exploration and evaluation costs where they are related directly to activities in a particular area of interest. The fair value of any recoveries from the disposition or optioning of a mineral property is credited to the carrying value of mineral properties. Once a project has been established as commercially viable and technically feasible, related development expenditures are capitalized. This includes costs incurred in preparing the site for mining operations. Capitalization ceases when the mine is capable of operating as intended by management. The actual recoverable value of capitalized expenditures for mineral properties and deferred exploration costs will be contingent upon the discovery of economically viable reserves and the Company’s financial ability at that time to fully exploit these properties or determine a suitable plan of disposition. When a decision is made to proceed with development in respect of a particular area of interest, the relevant exploration and evaluation asset is tested for impairment, reclassified to development properties, and then amortized over the life of the reserves associated with the area of interest once mining operations have commenced. (ii) Construction in progress Construction in progress includes power infrastructure, camps, bridges, and roads related to early infrastructure development at KSM. Costs are not depreciated until the underlying assets are ready for use as intended by management. (iii) Equipment Equipment located at project site are earth moving equipment, vehicles and other equipment used in the early infrastructure development at KSM. To the extent that the Company utilizes its own equipment for the activities which are capitalized for the mineral properties or the construction in progress, the associated depreciation is capitalized to those assets. (iv) Capitalized borrowing costs Borrowing costs are capitalized and allocated specifically to qualifying assets when funds have been borrowed, either to specifically finance a project or for general borrowings during the period of construction. Qualifying assets are defined as assets that require more than nine months to be brought to the location and condition intended by management. Capitalization of borrowing costs ceases when such assets are ready for their intended use. |
Depreciation | E. Depreciation Effective from the point an asset is available for its intended use, property and equipment are depreciated using the straight-line method over the estimated economic life of the asset. Estimated useful lives normally vary from three to fifteen years for equipment to a maximum of forty years for buildings. During the development phase, depreciation expense related to the right of use assets and property and equipment is recapitalized to the construction in progress pool. Residual values, useful lives and depreciation methods are reviewed at least annually and adjusted if appropriate. The impact of changes to the estimated useful lives, depreciation method or residual values is accounted for prospectively. |
Leasing arrangements | F. Leasing arrangements Leases are recognized as a right-of-use (“ROU”) asset and a corresponding liability at the date at which the leased asset is available for use by the Company. Each lease payment is allocated between the liability and finance cost. The finance cost is charged to profit or loss over the lease period. The ROU asset is depreciated over the shorter of the asset’s useful life and the lease term on a straight-line basis. Payments associated with short-term leases and leases of low-value assets are recognized on a straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less. |
Impairment and reversal of impairment | G. Impairment and reversal of impairment (i) Financial assets Financial assets measured at amortized cost are reviewed for impairment at each reporting date to determine whether there is any objective evidence of impairment. A financial asset is considered to be impaired if objective evidence, that can be estimated reliably, indicates that one or more events have had a negative effect on the estimated future cash flows of that asset. An impairment charge in respect of a financial asset measured at amortized cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the original effective interest rate. A prior period impairment charge is reviewed for possible reversal of impairment whenever an event or change in circumstance indicates the impairment may have reversed. If it has been determined that the impairment has reversed, the carrying amount of the asset is increased to its recoverable amount to a maximum of the carrying amount that would have been determined had no impairment charge been recognized in prior periods. Impairment charge reversals are recognized in the Consolidated statement of operations and comprehensive income (loss). (ii) Non-financial assets The carrying value of the Company’s mineral interests is assessed for impairment when indicators of such impairment exist. Indicators may include the loss of the right to explore in the area; the Company deciding not to continue exploring or incur substantial additional expenditures on the project; or it is determined that the carrying amount of the project is unlikely to be recovered by its development or sale. If any indication of impairment exists, an estimate of the asset’s recoverable amount is calculated to determine the extent of the impairment loss, if any. The recoverable amount is determined as the higher of the fair value less costs of disposal for the asset and the asset’s value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. Impairment is determined on an asset by asset basis, whenever possible. If it is not possible to determine impairment on an individual asset basis, then impairment is considered on the basis of a cash generating unit (“CGU”). CGUs represent the lowest level for which there are separately identifiable cash inflows that are largely independent of the cash flows from other assets or other group of assets. If the carrying amount of the asset exceeds its recoverable amount, the asset is impaired, and an impairment loss is charged immediately to comprehensive loss within the consolidated statements of operations and comprehensive income (loss) so as to reduce the carrying amount to its recoverable amount. An assessment is made at each reporting date as to whether there is any indication that previously recognized impairment losses may no longer exist or may have decreased. If such indication exists, the Company makes an estimate of the recoverable amount. A previously recognized impairment loss is reversed only if there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognized. If this is the case, the carrying amount of the asset is increased to its recoverable amount. The increased amount cannot exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset in prior years. Such reversal is recognized in the consolidated statements of operations and comprehensive income (loss). |
Reclamation liabilities | H. Reclamation liabilities Provisions for environmental restoration are recognized when: (i) the Company has a present legal or constructive obligation as a result of past exploration, development or production events; (ii) it is probable that an outflow of resources will be required to settle the obligation; and (iii) the amount can be reliably estimated. Provisions do not include obligations which are expected to arise from future disturbance. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation incorporating risks specific to the obligation using a pre-tax rate that reflects current market assessments of the time value of money. When estimates of obligations are revised, the present value of the changes in obligations is recorded in the period by a change in the obligation amount and a corresponding adjustment to the carrying amount of the related property. For locations where mining activities have ceased, the changes to obligations are charged directly to the consolidated statements of operations and comprehensive income (loss). The amortization or ‘unwinding’ of the discount applied in establishing the net present value of provisions due to the passage of time is charged to the consolidated statements of operations and comprehensive income (loss) in each accounting period. The ultimate cost of environmental remediation is uncertain and cost estimates can vary in response to many factors including changes to the relevant legal requirements, the emergence of new restoration techniques or experience at other mine sites. The expected timing of expenditure can also change, for example in response to changes in ore reserves or production rates. As a result, there could be significant adjustments to the provisions for restoration and environmental cleanup, which would affect future financial results. Funds on deposit with third parties provided as security for future reclamation costs are included in reclamation deposits on the statement of financial position. |
Income taxes | I. Income taxes Income tax expense comprises current and deferred tax. Current and deferred tax are recognized in profit or loss except to the extent that it relates to a business combination or items recognized directly in equity. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. Deferred tax is recognized using the asset and liability method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is measured at the rates that are expected to be applied to temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date. Deferred tax is not recognized for the following temporary differences; the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss, and differences relating to investments in subsidiaries and jointly controlled entities to the extent that it is probable that they will not reverse in the foreseeable future where the timing of the reversal of the temporary differences can be controlled by the parent. In addition, deferred tax is not recognized for taxable temporary differences arising on the initial recognition of goodwill which is not deductible for tax purposes. A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which the asset can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized. The Company has certain non-monetary assets and liabilities for which the tax reporting currency is different from its functional currency. Any translation gains or losses on the remeasurement of these items at current exchange rates versus historic exchange rates that give rise to a temporary difference is recorded as a deferred tax asset or liability. |
Stock-based compensation (options and restricted share units) | J. Stock-based compensation (options and restricted share units) The Company applies the fair value method for stock-based compensation and other stock-based payments. The fair value of options is valued using the Black Scholes option-pricing model and other models for the two-tiered options and restricted share units as may be appropriate. The grant date fair value of stock-based payment awards granted to employees is recognized as an employee expense, with a corresponding increase in equity, over the period that the employees unconditionally become entitled to the awards. The amount recognized as an expense is adjusted to reflect the number of awards for which the related service and non-market vesting conditions are expected to be met, such that the amount ultimately recognized as an expense is based on the number of awards that meet the related service and non-market performance conditions at the vesting date (Note 13). The Company reviews estimated forfeitures of options on an ongoing basis. The factors affecting stock-based compensation include estimates of when stock options might be exercised share price volatility and the assessment of the probability and timing of those instruments that have non-market performance vesting criteria. The timing for exercise of options is out of the Company’s control and will depend upon a variety of factors, including the market value of the Company’s shares and financial objectives of the share-based instrument holders. The Company uses historical data to determine volatility in accordance with appropriate fair value methodology. However, the future volatility is uncertain, and the model has its limitations. |
Flow-through shares | K. Flow-through shares The Company finances a portion of its exploration activities through the issuance of flow-through common shares. The tax deductibility of qualifying expenditures is transferred to the investor purchasing the shares. Consideration for the transferred deductibility of the qualifying expenditures is often paid through a premium price over the market price of the Company’s shares. The Company reports this premium as a liability on the statement of financial position and the balance is reported as share capital. At each reporting period, and as qualifying expenditures have been incurred, the liability is reduced on a proportionate basis and income is recognized in the consolidated statements of operations and comprehensive income (loss). |
Net earnings (loss) per common share | L. Net earnings (loss) per common share Basic earnings (loss) per common share is computed based on the weighted average number of common shares outstanding during the year. The Company uses the treasury stock method for calculating diluted earnings per share which assumes that stock options with an exercise price lower than the average quoted market price were exercised at the later of the beginning of the year, or time of issue and Restricted Share Units (“RSU”s). Stock options with an exercise price greater than the average quoted market price of the common shares are not included in the calculation of diluted earnings (loss) per share as the effect is anti-dilutive. |
Financial instruments | M. Financial instruments The Company recognizes financial assets and financial liabilities on the date the Company becomes a party to the contractual provisions of the instruments. A financial asset is derecognized either when the Company has transferred substantially all the risks and rewards of ownership of the financial asset or when cash flows expire. A financial liability is derecognized when the obligation specified in the contract is discharged, canceled or expired. Certain financial instruments are recorded at fair value in the consolidated statement of financial position. Non-derivative financial instruments Non-derivative financial instruments are recognized initially at fair value plus attributable transaction costs, where applicable for financial instruments not classified as fair value through profit or loss (“FVTPL”). Subsequent to initial recognition, non-derivative financial instruments are classified and measured as described below. Financial assets at FVTPL Cash and cash equivalents and short-term deposits are classified as financial assets at FVTPL and are measured at fair value. Cash equivalents are short-term deposits with maturities of up to 90 days at the date of purchase. Short-term deposits consist of investments with maturities from 91 days to one year at the date of purchase. Convertible notes receivable are recorded at FVTPL. Financial assets at amortized cost Trade and other receivables are classified as and measured at amortized cost using the effective interest rate method, less impairment losses, if any. Financial assets at fair value through other comprehensive income The Company’s investments in equity marketable securities are designated as financial assets at fair value through other comprehensive income and are recorded at fair value on the trade date with directly attributable transaction costs included in the recorded amount. Subsequent changes in fair value are recognized in other comprehensive income. Non-derivative financial liabilities Accounts payable and accrued liabilities are accounted for at amortized cost, using the effective interest rate method. Secured note The Company has elected to account for its secured note liability and all embedded derivatives as a single financial liability. The change in fair value of the secured note liability is recognized in profit or loss. The change in the fair value related to the Company’s own credit risk is recorded through other comprehensive income (loss). |
Accounting pronouncements | N. Accounting pronouncements New accounting standards and interpretations issued and effective: Amendments to IAS 16 - Property, Plant and Equipment: Proceeds before Intended Use Amendments to IAS 16 were issued by the IASB in May 2020. The amendments prohibit deducting from the cost of an item of property, plant and equipment any proceeds from selling items produced while bringing that asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Instead, an entity recognizes the proceeds from selling such items, and the cost of producing those items, in the Consolidated Statements of Operations and Comprehensive Income. The Company adopted the amendments effective January 1, 2022. The application of these amendments did not have an impact on the Company’s consolidated financial statements. Accounting pronouncements issued but not yet effective: Certain pronouncements have been issued by the IASB that are mandatory for accounting periods after December 31, 2022: ● Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12 Income Taxes) effective for annual periods beginning on or after January 1, 2023 ● Definition of Accounting Estimates (Amendments to IAS 8) effective for annual periods beginning on or after January 1, 2023 ● Presentation of Financial Statements (Amendments to IAS 1 and IFRS Practice Statement 2) effective for annual periods beginning on or after January 1, 2023 ● Classification of Liabilities as Current or Non-current (Amendments to IAS 1) effective for annual periods beginning on or after January 1, 2024 ● Lease Liability in a Sale and Leaseback (Amendments to IFRS 16 Leases) effective for annual periods beginning on or after January 1, 2024. None of these pronouncements are expected to have a significant impact on the Company’s consolidated financial statements upon adoption. |
Cash and Cash Equivalents and_2
Cash and Cash Equivalents and Short-Term Deposits (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Cash and Cash Equivalents and Short-Term Deposits Explanatory [Abstract] | |
Schedule of cash and cash equivalents and short-term deposits | ($000s) December 31, December 31, Cash and cash equivalents 46,150 11,523 Short-term deposits 81,690 29,243 127,840 40,766 |
Amounts Receivable and Prepai_2
Amounts Receivable and Prepaid Expenses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Amounts Receivable and Prepaid Expenses Explanatory [Abstract] | |
Schedule of receivable and prepaid expenses | ($000s) December 31, December 31, HST 4,247 1,698 Prepaid expenses and other receivables 3,973 8,328 8,220 10,026 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments Explanatory [Abstract] | |
Schedule of investments | ($000s) January 1, Fair value Loss of Impairment Additions December 31, Current assets: Investments in marketable securities 3,367 329 - - - 3,696 Non-current assets: Investment in associate 2,429 - (206 ) (873 ) (a) 39 (b) 1,389 ($000s) January 1, Fair value Loss of Impairment Additions December 31, Current assets: Investments in marketable securities 3,826 (459 ) - - - 3,367 Non-current assets: Investment in associate 2,611 - (221 ) 39 (c) 2,429 (a) The Company accounts for its investment in Paramount, a publicly listed company, using the equity method. During the second quarter of 2022, the Company concluded that the fair value of its investment in Paramount, determined based on the closing share price on June 30, 2022, had declined significantly and recorded an impairment of $0.9 million (December 31, 2021- nil (b) In 2022, the Company received 55,322 common shares of Paramount for payment of interest on the secured convertible notes accrued between July 1, 2021 and June 30, 2022. Subsequent to December 31, 2022, the Company received 43,928 common shares of Paramount for payment of interest on the secured convertible notes accrued between July 1, 2022 and December 31, 2022. The accrued interest is classified as receivable from a related party as of December 31, 2022. (c) During the year ended December 31, 2021, the Company received 30,086 common shares of Paramount for payment of interest on the secured convertible notes accrued between July 1, 2020 and June 30, 2021. Refer to note 7 for details on convertible notes receivable. |
Long-Term Receivables (Tables)
Long-Term Receivables (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Long-Term Receivables Explanatory [Abstract] | |
Schedule of long-term receivables | ($000s) December 31, December 31, BC Hydro 1 38,500 - Canadian Exploration Expenses (Note 18) 9,337 9,172 British Columbia Mineral Exploration Tax Credit 2 3,866 3,866 51,703 13,038 1) The Company has paid $38.5 million to British Columbia Hydro and Power Authority (“BC Hydro”) as advance payments made pursuant to the Company signing a facilities agreement with BC Hydro covering the design and construction of facilities to supply construction phase hydro-sourced electricity to the KSM project. 2) During 2016, upon the completion of an audit of the application by tax authorities of the British Columbia Mineral Exploration Tax Credit (“BCMETC”) program, the Company was reassessed $3.6 million, including accrued interest for expenditures that the tax authority has categorized as not qualifying for the BCMETC program. The Company recorded a $3.6 million provision within non-trade payables and accrued expenses on the consolidated statements of financial position as at December 31, 2016 with a corresponding increase in mineral interests. In 2017 the Company filed an objection to the reassessment with the appeals division of the tax authorities and paid one-half of the accrued balance to the Receiver General and reduced the provision by $1.8 million. In 2019, the Company received a decision from the appeals division that the Company’s objection was denied, and the Company filed a Notice of Appeal with the British Columbia Supreme Court. The Attorney General of Canada replied to the facts and arguments in the Company’s Notice of Appeal and stated its position that the Company’s expenditures did not qualify for the BCMETC program. During the first quarter 2022, the Company completed discoveries with the Department of Justice and will continue to move the appeal process forward as expeditiously as possible. The Company intends to continue to fully defend its position. Based on the facts and circumstances of the Company’s objection, the Company concludes that it is more likely than not that it will be successful in its objection. As at December 31, 2022, the Company has paid $1.6 million to the Receiver General, and the Canada Revenue Agency (CRA) has withheld $2.3 million of HST credits due to the Company that would fully cover the residual balance, including interest, should the Company be unsuccessful in its challenge. The amount recorded in long-term receivables as of December 31, 2022 of $3.9 million includes the initial reassessment of $3.6 million, plus accrued interest. |
Mineral Interests, Property a_2
Mineral Interests, Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Mineral Interests, Property and Equipment Explanatory [Abstract] | |
Schedule of mineral interest, property and equipment | ($000s) Mineral Construction Property & equipment 1 Right-of-use 1 Total Cost As at January 1, 2021 591,446 - - 307 591,753 Additions 40,559 27,061 3,080 100 70,800 As at December 31, 2021 632,005 27,061 3,080 407 662,553 Additions 55,069 120,287 43,177 2,030 220,563 As at December 31, 2022 687,074 147,348 46,257 2,437 883,116 Accumulated Depreciation As at January 1, 2021 - - - 72 72 Depreciation expense - - 117 85 202 As at December 31, 2021 - - 117 157 274 Depreciation expense 1 - - 953 392 1,345 As at December 31, 2022 - - 1,070 549 1,619 Net Book Value As at December 31, 2021 632,005 27,061 2,963 250 662,279 As at December 31, 2022 687,074 147,348 45,187 1,888 881,497 1) Depreciation expense related to camps, equipment, and right-of-use assets associated with the KSM construction is capitalized to construction in progress. |
Schedule of mineral interests, property and equipment | Year ended December 31, 2022 ($000s) January 1, Mineral interests Construction in progress Property & equipment Right-of-use assets Total Additions December 31, Additions KSM 1 502,015 39,985 120,287 43,177 1,726 205,175 707,190 Courageous Lake 77,176 823 - - - 823 77,999 Iskut 41,779 8,125 - - - 8,125 49,904 Snowstorm 31,471 3,091 - - - 3,091 34,562 3 Aces 9,034 3,045 - - - 3,045 12,079 Grassy Mountain 771 - - - - - 771 Corporate 307 - - - 304 304 611 662,553 55,069 120,287 43,177 2,030 220,563 883,116 Year ended December 31, 2021 ($000s) January 1, Mineral interests Construction in progress Property & equipment Right-of-use assets Total Additions December 31, Additions KSM 2 444,167 27,607 27,061 3,080 100 57,848 502,015 Courageous Lake 76,522 654 - - - 654 77,176 Iskut 37,949 3,830 - - - 3,830 41,779 Snowstorm 24,924 6,547 - - - 6,547 31,471 3 Aces 7,113 1,921 - - - 1,921 9,034 Grassy Mountain 771 - - - - - 771 Corporate 307 - - - - - 307 591,753 40,559 27,061 3,080 100 70,800 662,553 1) Construction in progress additions at KSM includes $14.7 million of capitalized borrowing costs. 2) $3.9 million of costs related to the BCMETC audit (refer to Note 8) were reclassified from mineral interests to amounts receivable. |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounts Payable and Accrued Liabilities Explanatory [Abstract] | |
Schedule of accounts payable and accrued liabilities | ($000s) December 31, December 31, Trade payables 15,686 10,190 Non-trade payables and accrued expenses 27,270 1,975 42,956 12,165 1) Non-trade payables and accrued expenses include $26.3 million of accrued expenses related to construction at KSM. |
Provision for Reclamation Lia_2
Provision for Reclamation Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Provision for Reclamation Liabilities Explanatory [Abstract] | |
Schedule of provision for reclamation liabilities | ($000s) December 31, December 31, Beginning of the period 8,442 6,164 Disbursements (4,519 ) (3,320 ) Environmental rehabilitation expense 6,851 5,515 Accretion 72 83 End of the period 10,846 8,442 Provision for reclamation liabilities – current 4,343 3,680 Provision for reclamation liabilities – long-term 6,503 4,762 10,846 8,442 |
Secured Note Liability (Tables)
Secured Note Liability (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Borrowings Text Block Abstract | |
Schedule of inputs and assumptions | Inputs and assumptions March 24, December 31, Weighted Average Life 1 23.5 years 44.9 years Forecast silver production in thousands of ounces 105,778 166,144 Future silver price US$ 28.96 to US$35.42 US$ 29.38 to US$110.51 Risk-free rate 2.5% 3.4% Credit spread 5.2% 5.3% Volatility 60% 60% Silver royalty discount factor 7.1% 8.6% 1) Weighted average life reflects the revised silver forecast production schedule contained in the recently filed KSM updated Preliminary Feasibility Study (“PFS”) and Preliminary Economic Assessment (“PEA”) for the KSM project filed in the second quarter of 2022 |
Schedule of carrying amount for the secured note | ($000s) Secured Note Fair value at inception 282,263 Add (deduct): Unrealized change in fair value (39,879) Foreign currency translation loss 21,157 Carrying value and fair value on December 31, 2022 263,541 |
Schedule of fair value of the secured note | Key Inputs Inter-relationship between significant inputs and fair value measurement Increase (decrease) (millions) Key observable inputs The estimated fair value would increase (decrease) if: ● Silver price forward curve ● Future silver prices were 10% higher $ 9.7 ● Future silver prices were 10% lower $ (9.8 ) ● Discount rates (7.6% - 9.6%) ● Discount rates were 1% higher $ (16.1 ) ● Discount rates were 1% lower $ 18.7 Key unobservable inputs ● Forecasted silver production ● Silver production indicated silver ounces were 10% higher $ 9.7 ● Silver production indicated silver ounces were 10% lower $ (9.8 ) |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Shareholders Explanatory [Abstract] | |
Schedule of stock option and RSU transactions | Options RSUs Total Number of Options Weighted Average Exercise Price ($) Amortized Value of options ($000s) Number of RSUs Amortized Value of RSUs ($000s) Stock-based Compensation ($000s) Outstanding January 1, 2022 1,023,334 14.61 8,125 173,800 572 8,697 Granted - - - 320,266 187 187 Exercised option or vested RSU (540,834 ) 13.54 (3,974 ) (148,800 ) (3,172 ) (7,146 ) Expired (5,000 ) 13.14 (34 ) - - (34 ) Amortized value of stock-based compensation - - - - 2,951 2,951 Outstanding at December 31, 2022 477,500 15.85 4,117 345,266 538 4,655 Exercisable at December 31, 2022 477,500 Options RSUs Total Number of Options Weighted Average Exercise Price ($) Amortized Value of options ($000s) Number of RSUs Amortized Value of RSUs ($000s) Stock-based Compensation ($000s) Outstanding at January 1, 2021 2,611,691 12.51 22,524 135,450 487 23,011 Granted - - - 173,800 573 573 Exercised option or vested RSU (1,585,501 ) 11.17 (14,370 ) (135,450 ) (3,413 ) (17,783 ) Expired (2,856 ) 6.30 (37 ) - - (37 ) Amortized value of stock-based compensation - - 8 - 2,925 2,933 Outstanding at December 31, 2021 1,023,334 14.61 8,125 173,800 572 8,697 Exercisable at December 31, 2021 1,023,334 |
Schedule of outstanding share | Options Outstanding Options Exercisable Exercise price Number Remaining Number $ 16.94 50,000 10 months 50,000 $ 15.46 377,500 1 year 377,500 $ 17.72 50,000 1 year 6 months 50,000 477,500 477,500 |
Schedule of basic and diluted earnings per common share | ($000s) December 31, December 31, Weighted average number of common shares outstanding 80,058,861 76,413,554 Dilutive effect of options - 1,023,334 Dilutive effect of RSUs - 163,800 80,058,861 77,600,688 |
Cash Flow Items (Tables)
Cash Flow Items (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Cash Flow Statement Text Block Abstract | |
Schedule of adjustment for other non-cash items within operating activities | Year Ended ($000s) Notes December 31, December 31, Impairment of investment in associate 6 873 - Equity loss of associate 6 207 221 Unrealized gain on convertible notes receivable 7 (25) (104) Accrued interest income on convertible notes receivable 7 (39) (39) Depreciation 9 84 85 Finance costs, net 72 110 Effects of exchange rate fluctuation on cash and cash equivalents 7 (3,216) 184 (2,044 ) 457 |
Fair Value of Financial Asset_2
Fair Value of Financial Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Fair Value Of Financial Instruments Text Block Abstract | |
Schedule of fair values of financial assets and liabilities | December 31, 2022 ($000s) Carrying Amount Level 1 Level 2 Level 3 Total Fair Value Assets Cash and cash equivalents 46,150 46,150 - - 46,150 Short-term deposits 81,690 81,690 - - 81,690 Amounts receivable 6,260 6,260 - - 6,260 Investment in marketable securities 3,696 3,696 - - 3,696 Convertible notes receivable 631 - - 631 631 Long-term receivables 51,703 51,703 - - 51,703 190,130 189,499 - 631 190,130 Liabilities Accounts payable and accrued liabilities 42,956 42,956 - - 42,956 Secured note 263,541 - - 263,541 263,541 306,497 42,956 - 263,541 306,497 December 31, 2021 ($000s) Carrying Amount Level 1 Level 2 Level 3 Total Fair Value Assets Cash and cash equivalents 11,523 11,523 - - 11,523 Short-term deposits 29,243 29,243 - - 29,243 Amounts receivable and prepaid expenses 5,229 5,229 - - 5,229 Investment in marketable securities 3,367 3,367 - - 3,367 Convertible notes receivable 606 - - 606 606 Long-term receivables 13,038 13,038 - - 13,038 63,006 62,400 - 606 63,006 Liabilities Accounts payable and accrued liabilities 12,165 12,165 - - 12,165 12,165 12,165 - - 12,165 |
Schedule of contractual cash flow requirements for its financial liabilities on repayment or maturity periods | ($000s) Less than 1 year 1-3 years 3-5 years Greater than 5 years Total Secured note including interest 19,808 39,616 39,616 164,501 263,541 Flow-through share expenditures 15,023 - - - 15,023 Lease obligation 669 834 106 92 1,701 35,500 40,450 39,722 164,593 280,265 |
Corporate and Administrative _2
Corporate and Administrative Expenses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Corporate and Administrative Expenses Explanatory [Abstract] | |
Schedule of corporate and administrative expenses | ($000s) 2022 2021 Employee compensation 7,479 5,781 Stock-based compensation 3,138 3,506 Professional fees 2,591 1,828 Other general and administrative 2,882 2,264 16,090 13,379 |
Related party disclosures (Tabl
Related party disclosures (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Related party disclosures [Abstract] | |
Schedule of compensation to key management personnel | ($000s) 2022 2021 Compensation of directors: Directors’ fees 560 431 Stock-based compensation 675 704 1,235 1,135 Compensation of key management personnel: Salaries and consulting fees 7,892 5,773 Stock-based compensation 2,026 2,226 9,918 7,999 11,153 9,134 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Taxes Explanatory [Abstract] | |
Schedule of deferred tax recovery | ($000s) 2022 2021 Deferred tax expense (recovery) 8,268 4,630 8,268 4,630 |
Schedule of tax expense recognized in other comprehensive income or directly in equity | ($000s) 2022 2021 Financing costs - recognized in statement of equity (330 ) (438 ) Unrealized gain or loss on marketable securities - recognized in OCI 831 (61 ) 501 (499 ) |
Schedule of reconciliation of the effective rate of income tax | ($000s) 2022 2021 Earnings before income taxes 874 5,525 26.68 % 26.63 % Tax expense calculated Using statutory rates 233 1,471 Non-deductible items 2,280 303 Difference in foreign tax rates 103 (8 ) Change in deferred tax rates (116 ) (132 ) Movement in tax benefits not recognized 2,996 949 Impact of true-up of prior year balances 124 1 Renouncement of flow-through expenditures 2,525 2,020 Other 123 24 Income tax expense 8,268 4,630 |
Schedule of deferred income tax assets and liabilities | ($000s) December 31, December 31, Deferred income tax assets: Property and equipment 565 292 Provision for reclamation liabilities 1,235 595 Financing costs 2,487 2,080 Non-capital loss carryforwards 38,255 33,098 Deferred income tax liabilities: Mineral interests (63,710 ) (59,229 ) Secured note (10,766 ) - Net deferred income tax liabilities (31,934 ) (23,164 ) |
Schedule of unrecognized deferred tax assets | ($000s) December 31, December 31, Marketable securities 137 182 Loss carryforwards 834 798 Investment tax credits 1,481 1,481 Foreign tax credits 268 268 Mineral properties 437 140 Provision for reclamation liabilities 1,091 1,083 |
Schedule of income tax attributes | ($000s) Expiry date Canadian non-capital losses 143,103 2042 Canadian capital losses 2,571 Indefinite Canadian tax basis of mineral interest 406,278 Indefinite US non-capital losses 480 2042 US tax basis of mineral interest 23,201 Indefinite |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Explanatory [Abstract] | |
Schedule of commitments and contingencies | Payments due by years ($000s) Total 2023 2024-25 2026-27 2028-29 Secured note – interest 138,656 19,808 39,616 39,616 39,616 Capital expenditure obligations 104,688 98,128 6,560 - - Flow-through share expenditures 15,023 15,023 - - - Mineral interests 5,782 826 1,652 1,652 1,652 Lease obligation 1,701 669 834 106 92 265,850 134,454 48,662 41,374 41,360 |
Basis of Preparation (Details)
Basis of Preparation (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Interim Financial Reporting Text Block Abstract | |
Voting rights, description | Significant influence is presumed to exist where the Company has between 20% and 50% of the voting rights but can also arise where the Company has less than 20% if influence is exerted over policy decisions that affect the entity. |
Significant Accounting Polici_2
Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Buildings [Member] | |
Significant Accounting Policies (Details) [Line Items] | |
Estimated useful life | 40 years |
Minimum [Member] | Equipment [Member] | |
Significant Accounting Policies (Details) [Line Items] | |
Estimated useful life | 3 years |
Maximum [Member] | Equipment [Member] | |
Significant Accounting Policies (Details) [Line Items] | |
Estimated useful life | 15 years |
Cash and Cash Equivalents and_3
Cash and Cash Equivalents and Short-Term Deposits (Details) $ in Thousands, $ in Millions | Dec. 31, 2022 CAD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CAD ($) |
Disclosure Of Cash And Cash Equivalents Text Block Abstract | |||
Short-term deposits | $ 81,690 | $ 80.4 | $ 29,243 |
Cash and Cash Equivalents and_4
Cash and Cash Equivalents and Short-Term Deposits (Details) - Schedule of cash and cash equivalents and short-term deposits - CAD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule Of Cash And Cash Equivalents And Short Term Deposits Abstract | ||
Cash and cash equivalents | $ 46,150 | $ 11,523 |
Short-term deposits | 81,690 | 29,243 |
Total | $ 127,840 | $ 40,766 |
Amounts Receivable and Prepai_3
Amounts Receivable and Prepaid Expenses (Details) - Schedule of receivable and prepaid expenses - CAD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of receivable and prepaid expenses [Abstract] | ||
HST | $ 4,247 | $ 1,698 |
Prepaid expenses and other receivables | 3,973 | 8,328 |
Total | $ 8,220 | $ 10,026 |
Investments (Details)
Investments (Details) - CAD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Investments (Details) [Line Items] | ||||
Impairment loss | $ 900 | |||
Common shares received (in Shares) | 55,322 | 43,928 | 30,086 | |
Financial assets are recorded at fair value | $ 3,700 | $ 3,400 | ||
Fair value of investments | 300 | |||
Net loss | $ (7,394) | $ 895 | ||
Paramount Gold Nevada Corp [Member] | ||||
Investments (Details) [Line Items] | ||||
Interest, percentage | 5.60% | 6.40% | ||
Net loss | $ 200 | $ 200 | ||
Carrying value of investment | $ 1,400 | $ 2,400 |
Investments (Details) - Schedul
Investments (Details) - Schedule of investments - CAD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | ||||
Investments in marketable securities [Member] | |||||
Current assets: | |||||
Investments in marketable securities, Beginning balance | $ 3,367 | $ 3,826 | |||
Investments in marketable securities, Fair value through other comprehensive income (loss) | 329 | (459) | |||
Investments in marketable securities, Loss of associate | |||||
Investments in marketable securities, Impairment | |||||
Investments in marketable securities, Additions | |||||
Investments in marketable securities, Ending balance | 3,696 | 3,367 | |||
Investment in associate [Member] | |||||
Non-current assets: | |||||
Investment in associate, Beginning balance | 2,429 | 2,611 | |||
Investment in associate, Fair value through other comprehensive income (loss) | |||||
Investment in associate, Loss of associate | (206) | (221) | |||
Investment in associate, Impairment | [1] | (873) | |||
Investment in associate ,Additions | 39 | [2] | 39 | [3] | |
Investment in associate, Ending balance | $ 1,389 | $ 2,429 | |||
[1] The Company accounts for its investment in Paramount, a publicly listed company, using the equity method. During the second quarter of 2022, the Company concluded that the fair value of its investment in Paramount, determined based on the closing share price on June 30, 2022, had declined significantly and recorded an impairment of $0.9 million (December 31, 2021- nil In 2022, the Company received 55,322 common shares of Paramount for payment of interest on the secured convertible notes accrued between July 1, 2021 and June 30, 2022. Subsequent to December 31, 2022, the Company received 43,928 common shares of Paramount for payment of interest on the secured convertible notes accrued between July 1, 2022 and December 31, 2022. The accrued interest is classified as receivable from a related party as of December 31, 2022. During the year ended December 31, 2021, the Company received 30,086 common shares of Paramount for payment of interest on the secured convertible notes accrued between July 1, 2020 and June 30, 2021. Refer to note 7 for details on convertible notes receivable. |
Convertible Notes Receivable (D
Convertible Notes Receivable (Details) $ / shares in Units, $ in Thousands, $ in Millions | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 CAD ($) | Sep. 30, 2019 USD ($) $ / shares | Dec. 31, 2022 CAD ($) shares | Dec. 31, 2021 CAD ($) shares | |
Disclosure Of Convertible Notes Receivable Explanatory Abstract | ||||
Secured convertible notes (in Dollars) | $ 410,000 | |||
Convertible note issue price (in Dollars per share) | $ / shares | $ 975 | |||
Face value (in Dollars) | $ 1,000 | |||
Number of convertible notes | 410 | |||
Payments to convertible notes | $ 0.5 | $ 399,750 | ||
Convertible notes interest rate | 7.50% | |||
Convertible notes conversion price (in Dollars per share) | $ / shares | $ 1 | |||
Convertible notes receivable (in Dollars) | $ 0.6 | $ 0.6 | ||
Risk-free rate | 2.96% | 0.91% | ||
Expected remaining life | 9 months | 1 year 9 months | ||
Volatility | 52.60% | 47% | ||
Secured convertible notes accrued (in Shares) | shares | 55,322 | 30,086 | ||
Secured convertible notes accrued and receivables (in Shares) | shares | 43,928 |
Long-Term Receivables (Details)
Long-Term Receivables (Details) $ in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2022 CAD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2017 CAD ($) | Dec. 31, 2016 CAD ($) | |
Disclosure Of Tax Receivables And Payables Text Block Abstract | |||||
Advance payments | $ 38.5 | ||||
Accrued interest | $ 3.6 | ||||
Non-trade payables and accrued expenses | $ 3.6 | ||||
Accrued balance | $ 1.8 | ||||
Paid amount | 1.6 | ||||
Credits amount | $ 2.3 | ||||
Long-term receivables (in Dollars) | $ 3.9 | ||||
Accrued interest. (in Dollars) | $ 3.6 |
Long-Term Receivables (Detail_2
Long-Term Receivables (Details) - Schedule of long-term receivables - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Schedule Of Long Term Receivables Abstract | |||
BC Hydro | [1] | $ 38,500 | |
Canadian Exploration Expenses (Note 18) | 9,337 | 9,172 | |
British Columbia Mineral Exploration Tax Credit | [2] | 3,866 | 3,866 |
Long-term receivables | $ 51,703 | $ 13,038 | |
[1] The Company has paid $38.5 million to British Columbia Hydro and Power Authority (“BC Hydro”) as advance payments made pursuant to the Company signing a facilities agreement with BC Hydro covering the design and construction of facilities to supply construction phase hydro-sourced electricity to the KSM project. During 2016, upon the completion of an audit of the application by tax authorities of the British Columbia Mineral Exploration Tax Credit (“BCMETC”) program, the Company was reassessed $3.6 million, including accrued interest for expenditures that the tax authority has categorized as not qualifying for the BCMETC program. The Company recorded a $3.6 million provision within non-trade payables and accrued expenses on the consolidated statements of financial position as at December 31, 2016 with a corresponding increase in mineral interests. In 2017 the Company filed an objection to the reassessment with the appeals division of the tax authorities and paid one-half of the accrued balance to the Receiver General and reduced the provision by $1.8 million. In 2019, the Company received a decision from the appeals division that the Company’s objection was denied, and the Company filed a Notice of Appeal with the British Columbia Supreme Court. The Attorney General of Canada replied to the facts and arguments in the Company’s Notice of Appeal and stated its position that the Company’s expenditures did not qualify for the BCMETC program. During the first quarter 2022, the Company completed discoveries with the Department of Justice and will continue to move the appeal process forward as expeditiously as possible. The Company intends to continue to fully defend its position. Based on the facts and circumstances of the Company’s objection, the Company concludes that it is more likely than not that it will be successful in its objection. As at December 31, 2022, the Company has paid $1.6 million to the Receiver General, and the Canada Revenue Agency (CRA) has withheld $2.3 million of HST credits due to the Company that would fully cover the residual balance, including interest, should the Company be unsuccessful in its challenge. The amount recorded in long-term receivables as of December 31, 2022 of $3.9 million includes the initial reassessment of $3.6 million, plus accrued interest. |
Mineral Interests, Property a_3
Mineral Interests, Property and Equipment (Details) $ in Thousands, ៛ in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2020 | Dec. 31, 2017 | Jun. 21, 2016 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2002 | Dec. 31, 2001 | Mar. 31, 2021 | Dec. 31, 2022 CAD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 KHR (៛) | Dec. 31, 2021 CAD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) | |
Mineral Interests, Property and Equipment (Details) [Line Items] | |||||||||||||||
Capitalized borrowing costs (in Riels) | ៛ | ៛ 14.7 | ||||||||||||||
Total expenditure (in Dollars) | $ 3,900 | ||||||||||||||
Agreement, description | the Company entered into an agreement with two securities dealers, for an At-The-Market offering program, entitling the Company, at its discretion, and from time to time, to sell up to US$75 million in value of common shares of the Company. This program was in effect until the Company’s US$775 million Shelf Registration Statement, that expired in December 2022, was replaced with a new US$750 million the same month. Subsequent to the year end, a US$100 million prospectus supplement was filed and the program was renewed at that time.In 2021, the Company issued 2,242,112 shares, at an average selling price of $22.71 per share, for net proceeds of $49.9 million under the Company’s At-The-Market offering. In 2022, the Company issued 998,629 shares, at an average selling price of $22.82 per share, for net proceeds of $22.3 million under the Company’s At-The-Market offering. | In December 2022, the Company issued a total of 675,400 flow-through common shares at an average $22.24 per common share for aggregate gross proceeds of $15.0 million. | In December 2022, the Company issued a total of 675,400 flow-through common shares at an average $22.24 per common share for aggregate gross proceeds of $15.0 million. | In December 2022, the Company issued a total of 675,400 flow-through common shares at an average $22.24 per common share for aggregate gross proceeds of $15.0 million. | |||||||||||
Company purchased, description | the Company purchased the Snowfield (renamed East Mitchell) property from Pretium Resources Inc. The East Mitchell property, located in the same valley that hosts KSM’s Mitchell deposit, was purchased for US$100 million ($127.5 million) in cash, a 1.5% net smelter royalty on East Mitchell property production, and a conditional payment of US$20 million, payable following the earlier of (i) commencement of commercial production from East Mitchell property, and (ii) announcement by the Company of a bankable feasibility study which includes production of reserves from the East Mitchell property. US$15 million of the conditional payment can be credited against future royalty payments. | ||||||||||||||
Mineral interests | $ 40 | $ 27.6 | |||||||||||||
Construction in progress | $ 32,800 | 27 | $ 104.6 | ||||||||||||
Interest expense | 263,541 | 14.7 | |||||||||||||
Depreciation expense | 0.9 | 0.1 | |||||||||||||
Property and equipment | $ 37.8 | ||||||||||||||
Commissioned camp costs | 4.5 | 3.1 | |||||||||||||
Equipment costs | $ 0.7 | ||||||||||||||
Exploration cost (in Dollars) | 9,337 | $ 9,172 | |||||||||||||
KSM [Member] | |||||||||||||||
Mineral Interests, Property and Equipment (Details) [Line Items] | |||||||||||||||
Purchased, description | In 2001, the Company purchased a 100% interest in contiguous claim blocks in the Skeena Mining Division, British Columbia. The vendor maintains a 1% net smelter royalty interest on the project, subject to maximum aggregate royalty payments of $4.5 million. The Company is obligated to purchase the net smelter royalty interest for the price of $4.5 million in the event that a positive feasibility study demonstrates a 10% or higher internal rate of return after tax and financing costs. | ||||||||||||||
Agreement, description | In 2011 and 2012, the Company completed agreements granting a third party an option to acquire a 2% net smelter royalty on all gold and silver production sales from KSM for a payment equal to the lesser of $160 million or US$200 million. The option is exercisable for a period of 60 days following the announcement of receipt of all material approvals and permits, full project financing and certain other conditions for the KSM Project. | In 2011 and 2012, the Company completed agreements granting a third party an option to acquire a 2% net smelter royalty on all gold and silver production sales from KSM for a payment equal to the lesser of $160 million or US$200 million. The option is exercisable for a period of 60 days following the announcement of receipt of all material approvals and permits, full project financing and certain other conditions for the KSM Project. | |||||||||||||
Courageous Lake [Member] | |||||||||||||||
Mineral Interests, Property and Equipment (Details) [Line Items] | |||||||||||||||
Purchased, description | In 2002, the Company purchased a 100% interest in the Courageous Lake gold project from Newmont Canada Limited and Total Resources (Canada) Limited. The Courageous Lake gold project consists of mining leases located in Northwest Territories of Canada. | ||||||||||||||
Iskut [Member] | |||||||||||||||
Mineral Interests, Property and Equipment (Details) [Line Items] | |||||||||||||||
Additions interest (in Dollars) | 8,100 | ||||||||||||||
Exploration cost (in Dollars) | 6,100 | ||||||||||||||
Environmental costs (in Dollars) | 1,000 | ||||||||||||||
Payroll cost (in Dollars) | 900 | ||||||||||||||
Iskut [Member] | SnipGold Corp [Member] | |||||||||||||||
Mineral Interests, Property and Equipment (Details) [Line Items] | |||||||||||||||
Purchased of interest, percentage | 100% | ||||||||||||||
Snowstorm [Member] | |||||||||||||||
Mineral Interests, Property and Equipment (Details) [Line Items] | |||||||||||||||
Company purchased, description | In 2017, the Company purchased 100% of the common shares of Snowstorm Exploration LLC which owns the Snowstorm Project, located in northern Nevada. In connection with the acquisition, the Company has agreed to make a conditional cash payment of US$2.5 million if exploration activities at the Snowstorm Project result in defining a minimum of five million ounces of gold resources compliant with National Instrument 43-101 and a further cash payment of US$5.0 million on the delineation of an additional five million ounces of gold resources. | ||||||||||||||
Additions interest (in Dollars) | 3,100 | ||||||||||||||
3 Aces [Member] | |||||||||||||||
Mineral Interests, Property and Equipment (Details) [Line Items] | |||||||||||||||
Company purchased, description | In 2020, the Company acquired a 100% interest in the 3 Aces gold project in the Yukon, Canada from Golden Predator Mining Corp. through the issuance of 300,000 common shares valued at $6.6 million. Should the project attain certain milestones, including the confirmation of a National Instrument 43-101 compliant mineral resource of 2.5 million ounces of gold, the Company will pay an additional $1 million, and upon confirmation of an aggregate mineral resource of 5 million ounces of gold, the Company will pay an additional $1.25 million. | ||||||||||||||
Additions interest (in Dollars) | $ 3,000 | ||||||||||||||
Grassy Mountain [Member] | |||||||||||||||
Mineral Interests, Property and Equipment (Details) [Line Items] | |||||||||||||||
Company sold, description | In 2013, the Company sold 100% of its interest in the Grassy Mountain Project with a net book value of $0.8 million retained within mineral properties, related to the option to either receive, at the discretion of the Company, a 10% net profits interest royalty or a $10 million cash payment. Settlement is due four months after the later of: the day that the Company receives a feasibility study on the project; and the day that the Company is notified that permitting and bonding for the mine is in place. The current owner of the Grassy Mountain Project is Paramount who completed a feasibility study in 2020 but they have not notified the Company that permitting and bonding for the mine is in place. |
Mineral Interests, Property a_4
Mineral Interests, Property and Equipment (Details) - Schedule of mineral interest, property and equipment - CAD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | |||
Cost | ||||
Cost, Beginning Balance | $ 662,553 | $ 591,753 | ||
Cost, Additions | 220,563 | 70,800 | ||
Cost, Ending Balance | 883,116 | 662,553 | ||
Accumulated Depreciation | ||||
Accumulated Depreciation, Beginning Balance | 274 | 72 | ||
Accumulated Depreciation, Depreciation expense | 1,345 | [1] | 202 | |
Accumulated Depreciation, Ending Balance | 1,619 | 274 | ||
Net Book Value | ||||
Net Book Value | 881,497 | 662,279 | ||
Mineral interests [Member] | ||||
Cost | ||||
Cost, Beginning Balance | 632,005 | 591,446 | ||
Cost, Additions | 55,069 | 40,559 | ||
Cost, Ending Balance | 687,074 | 632,005 | ||
Accumulated Depreciation | ||||
Accumulated Depreciation, Beginning Balance | ||||
Accumulated Depreciation, Depreciation expense | [1] | |||
Accumulated Depreciation, Ending Balance | ||||
Net Book Value | ||||
Net Book Value | 687,074 | 632,005 | ||
Construction in progress [Member] | ||||
Cost | ||||
Cost, Beginning Balance | 27,061 | |||
Cost, Additions | 120,287 | 27,061 | ||
Cost, Ending Balance | 147,348 | 27,061 | ||
Accumulated Depreciation | ||||
Accumulated Depreciation, Beginning Balance | ||||
Accumulated Depreciation, Depreciation expense | [1] | |||
Accumulated Depreciation, Ending Balance | ||||
Net Book Value | ||||
Net Book Value | 147,348 | 27,061 | ||
Property & Equipment [Member] | ||||
Cost | ||||
Cost, Beginning Balance | [1] | 3,080 | ||
Cost, Additions | [1] | 43,177 | 3,080 | |
Cost, Ending Balance | [1] | 46,257 | 3,080 | |
Accumulated Depreciation | ||||
Accumulated Depreciation, Beginning Balance | [1] | 117 | ||
Accumulated Depreciation, Depreciation expense | [1] | 953 | 117 | |
Accumulated Depreciation, Ending Balance | [1] | 1,070 | 117 | |
Net Book Value | ||||
Net Book Value | [1] | 45,187 | 2,963 | |
Right-of-use assets [Member] | ||||
Cost | ||||
Cost, Beginning Balance | [1] | 407 | 307 | |
Cost, Additions | [1] | 2,030 | 100 | |
Cost, Ending Balance | [1] | 2,437 | 407 | |
Accumulated Depreciation | ||||
Accumulated Depreciation, Beginning Balance | [1] | 157 | 72 | |
Accumulated Depreciation, Depreciation expense | [1] | 392 | 85 | |
Accumulated Depreciation, Ending Balance | [1] | 549 | 157 | |
Net Book Value | ||||
Net Book Value | [1] | $ 1,888 | $ 250 | |
[1] Depreciation expense related to camps, equipment, and right-of-use assets associated with the KSM construction is capitalized to construction in progress. |
Mineral Interests, Property a_5
Mineral Interests, Property and Equipment (Details) - Schedule of mineral interests, property and equipment - CAD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | |||
KSM [Member] | ||||
Additions | ||||
Balance | $ 502,015 | [1] | $ 444,167 | [2] |
Mineral interests | 39,985 | [1] | 27,607 | [2] |
Construction in progress | 120,287 | [1] | 27,061 | [2] |
Property & equipment | 43,177 | [1] | 3,080 | [2] |
Right-of-use assets | 1,726 | [1] | 100 | [2] |
Total Additions | 205,175 | [1] | 57,848 | [2] |
Balance | 707,190 | [1] | 502,015 | [2] |
Courageous Lake [Member] | ||||
Additions | ||||
Balance | 77,176 | 76,522 | ||
Mineral interests | 823 | 654 | ||
Construction in progress | ||||
Property & equipment | ||||
Right-of-use assets | ||||
Total Additions | 823 | 654 | ||
Balance | 77,999 | 77,176 | ||
Iskut [Member] | ||||
Additions | ||||
Balance | 41,779 | 37,949 | ||
Mineral interests | 8,125 | 3,830 | ||
Construction in progress | ||||
Property & equipment | ||||
Right-of-use assets | ||||
Total Additions | 8,125 | 3,830 | ||
Balance | 49,904 | 41,779 | ||
Snowstorm [Member] | ||||
Additions | ||||
Balance | 31,471 | 24,924 | ||
Mineral interests | 3,091 | 6,547 | ||
Construction in progress | ||||
Property & equipment | ||||
Right-of-use assets | ||||
Total Additions | 3,091 | 6,547 | ||
Balance | 34,562 | 31,471 | ||
3 Aces [Member] | ||||
Additions | ||||
Balance | 9,034 | 7,113 | ||
Mineral interests | 3,045 | 1,921 | ||
Construction in progress | ||||
Property & equipment | ||||
Right-of-use assets | ||||
Total Additions | 3,045 | 1,921 | ||
Balance | 12,079 | 9,034 | ||
Grassy Mountain [Member] | ||||
Additions | ||||
Balance | 771 | 771 | ||
Mineral interests | ||||
Construction in progress | ||||
Property & equipment | ||||
Right-of-use assets | ||||
Total Additions | ||||
Balance | 771 | 771 | ||
Corporate [Member] | ||||
Additions | ||||
Balance | 307 | 307 | ||
Mineral interests | ||||
Construction in progress | ||||
Property & equipment | ||||
Right-of-use assets | 304 | |||
Total Additions | 304 | |||
Balance | 611 | 307 | ||
Total [Member] | ||||
Additions | ||||
Balance | 662,553 | 591,753 | ||
Mineral interests | 55,069 | 40,559 | ||
Construction in progress | 120,287 | 27,061 | ||
Property & equipment | 43,177 | 3,080 | ||
Right-of-use assets | 2,030 | 100 | ||
Total Additions | 220,563 | 70,800 | ||
Balance | $ 883,116 | $ 662,553 | ||
[1] Construction in progress additions at KSM includes $14.7 million of capitalized borrowing costs. $3.9 million of costs related to the BCMETC audit (refer to Note 8) were reclassified from mineral interests to amounts receivable. |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Liabilities (Details) $ in Millions | Dec. 31, 2022 CAD ($) |
Disclosure Of Accrued Expenses And Other Liabilities Text Block Abstract | |
Non-trade payables and accrued expenses | $ 26.3 |
Accounts Payable and Accrued _4
Accounts Payable and Accrued Liabilities (Details) - Schedule of accounts payable and accrued liabilities - CAD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule Of Accounts Payable And Accrued Liabilities Abstract | ||
Trade payables | $ 15,686 | $ 10,190 |
Non-trade payables and accrued expenses | 27,270 | 1,975 |
Accounts payable and accrued liabilities | $ 42,956 | $ 12,165 |
Provision for Reclamation Lia_3
Provision for Reclamation Liabilities (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Provision for Reclamation Liabilities (Details) [Line Items] | ||
Estimated discounted cash flows of future reclamation costs | $ 10.8 | $ 8.4 |
Undiscounted future cash outflows | $ 11.5 | $ 8.6 |
Nominal discount rate | 4.07% | 0.90% |
Reclamation disbursements | $ 4.5 | $ 3.3 |
Rehabilitation expenses | 6.6 | 5.4 |
Deposit with financial institution pledged as security | 7.9 | 3 |
Reclamation Liabilities [Member] | ||
Provision for Reclamation Liabilities (Details) [Line Items] | ||
Deposit with financial institution pledged as security | 20.6 | $ 15.2 |
KSM [Member] | ||
Provision for Reclamation Liabilities (Details) [Line Items] | ||
Deposit with financial institution pledged as security | $ 5.4 |
Provision for Reclamation Lia_4
Provision for Reclamation Liabilities (Details) - Schedule of provision for reclamation liabilities - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule Of Provision For Reclamation Liabilities Abstract | ||
Beginning of the period | $ 8,442 | $ 6,164 |
Disbursements | (4,519) | (3,320) |
Environmental rehabilitation expense | 6,851 | 5,515 |
Accretion | 72 | 83 |
End of the period | 10,846 | 8,442 |
Provision for reclamation liabilities – current | 4,343 | 3,680 |
Provision for reclamation liabilities – long-term | 6,503 | 4,762 |
Total | $ 10,846 | $ 8,442 |
Secured Note Liability (Details
Secured Note Liability (Details) $ in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 CAD ($) | Dec. 31, 2022 USD ($) | Feb. 25, 2022 USD ($) | |
Disclosure Of Borrowings Text Block Abstract | |||
Institutional investors rate | 100% | ||
Institutional investors | $ 225 | ||
Investors right to purchase description | ●When the secured note matures, the Investors will use all of the principal amount repaid on maturity to purchase a 60% gross silver royalty (the “Silver Royalty”) maturity occurs upon the first to occur of: a)Commercial production being achieved at KSM; and b)Either the 10-year anniversary, or if the Environmental Assessment Certificate (“EAC”) expires and the Investors do not exercise their right to put the secured note to the Company, the 13-year anniversary of the issue date of the secured note. ●Prior to its maturity, the secured note bears interest at 6.5% per annum, payable quarterly in arrears. The Company can elect to satisfy interest payments in cash or by delivering common shares. ●The Company has the option to buyback 50% of the Silver Royalty, once exchanged on or before 3 years after commercial production has been achieved, for an amount that provides the Investors a minimum guaranteed annualized return. ●If project financing to develop, construct and place KSM into commercial production is not in place by the fifth anniversary from closing, the Investors can put the secured note back to the Company for US$232.5 million, with the Company able to satisfy such amount in cash or by delivering common shares at its option. This right expires once such project financing is in place. If the Investors exercise this put right, the Investors’ right to purchase the Silver Royalty terminates. ●If KSM’s EAC expires at anytime while the secured note is outstanding, the Investors can put the secured note back to the Company for US$247.5 million at any time over the following nine months, with the Company able to satisfy such amount in cash or by delivering common shares at its option. If the Investors exercise this put right, the Investors’ right to purchase the Silver Royalty terminates. ●If commercial production is not achieved at KSM prior to the tenth anniversary from closing, the Silver Royalty payable to the Investors will increase to a 75% gross silver royalty (if the EAC expires during the term of the secured note and the corresponding put right is not exercised by the Investors, this uplift will occur at the thirteenth anniversary from closing). ●No amount payable shall be paid in common shares if, after the payment, any of the Investors would own more than 9.9% of the Company’s outstanding shares. ●The Company’s obligations under the secured note are secured by a charge over all of the assets of KSMCo and a limited recourse guarantee from the Company secured by a pledge of the shares of KSMCo. | ||
Fair value of loan commitment (in Dollars) | $ 225 | ||
Fair value at initial recognition | $ 282.3 | $ 225 | |
Fair value of the secured note decreased | $ 36.7 |
Secured Note Liability (Detai_2
Secured Note Liability (Details) - Schedule of inputs and assumptions - CAD ($) | 9 Months Ended | ||
Dec. 31, 2022 | Mar. 24, 2022 | ||
Secured Note Liability (Details) - Schedule of inputs and assumptions [Line Items] | |||
Weighted Average Life 1 | [1] | 44 years 10 months 24 days | 23 years 6 months |
Forecast silver production in thousands of ounces (in Shares) | 166,144 | 105,778 | |
Risk-free rate | 3.40% | 2.50% | |
Credit spread | 5.30% | 5.20% | |
Volatility | 60% | 60% | |
Silver royalty discount factor | 8.60% | 7.10% | |
Bottom of range [member] | |||
Secured Note Liability (Details) - Schedule of inputs and assumptions [Line Items] | |||
Future silver price (in Dollars) | $ 29,380 | $ 28,960 | |
Top of range [member] | |||
Secured Note Liability (Details) - Schedule of inputs and assumptions [Line Items] | |||
Future silver price (in Dollars) | $ 110,510 | $ 35,420 | |
[1] Weighted average life reflects the revised silver forecast production schedule contained in the recently filed KSM updated Preliminary Feasibility Study (“PFS”) and Preliminary Economic Assessment (“PEA”) for the KSM project filed in the second quarter of 2022 |
Secured Note Liability (Detai_3
Secured Note Liability (Details) - Schedule of carrying amount for the secured note | 12 Months Ended |
Dec. 31, 2022 shares | |
Schedule Of Carrying Amount For The Secured Note Abstract | |
Fair value at inception | 282,263 |
Add (deduct): | |
Unrealized change in fair value | (39,879) |
Foreign currency translation loss | 21,157 |
Carrying value and fair value on December 31, 2022 | 263,541 |
Secured Note Liability (Detai_4
Secured Note Liability (Details) - Schedule of fair value of the secured note $ in Millions | 12 Months Ended |
Dec. 31, 2022 CAD ($) | |
Silver price forward curve [Member] | |
Secured Note Liability (Details) - Schedule of fair value of the secured note [Line Items] | |
Key Inputs | ● Silver price forward curve |
Inter-relationship between significant inputs and fair value measurement | ● Future silver prices were 10% higher |
Increase (decrease) | $ 9.7 |
Silver price forward curve one [Member] | |
Secured Note Liability (Details) - Schedule of fair value of the secured note [Line Items] | |
Inter-relationship between significant inputs and fair value measurement | ● Future silver prices were 10% lower |
Increase (decrease) | $ (9.8) |
Discount rates (7.6% - 9.6%) [Member] | |
Secured Note Liability (Details) - Schedule of fair value of the secured note [Line Items] | |
Key Inputs | ● Discount rates (7.6% - 9.6%) |
Inter-relationship between significant inputs and fair value measurement | ● Discount rates were 1% higher |
Increase (decrease) | $ (16.1) |
Discount rates (7.6% - 9.6%) one [Member] | |
Secured Note Liability (Details) - Schedule of fair value of the secured note [Line Items] | |
Inter-relationship between significant inputs and fair value measurement | ● Discount rates were 1% lower |
Increase (decrease) | $ 18.7 |
Forecasted silver production [Member] | |
Secured Note Liability (Details) - Schedule of fair value of the secured note [Line Items] | |
Key Inputs | ● Forecasted silver production |
Inter-relationship between significant inputs and fair value measurement | ● Silver production indicated silver ounces were 10% higher |
Increase (decrease) | $ 9.7 |
Forecasted silver production one [Member] | |
Secured Note Liability (Details) - Schedule of fair value of the secured note [Line Items] | |
Inter-relationship between significant inputs and fair value measurement | ● Silver production indicated silver ounces were 10% lower |
Increase (decrease) | $ (9.8) |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - CAD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Shareholders' Equity (Details) [Line Items] | ||||||||||
Agreement, description | the Company entered into an agreement with two securities dealers, for an At-The-Market offering program, entitling the Company, at its discretion, and from time to time, to sell up to US$75 million in value of common shares of the Company. This program was in effect until the Company’s US$775 million Shelf Registration Statement, that expired in December 2022, was replaced with a new US$750 million the same month. Subsequent to the year end, a US$100 million prospectus supplement was filed and the program was renewed at that time.In 2021, the Company issued 2,242,112 shares, at an average selling price of $22.71 per share, for net proceeds of $49.9 million under the Company’s At-The-Market offering. In 2022, the Company issued 998,629 shares, at an average selling price of $22.82 per share, for net proceeds of $22.3 million under the Company’s At-The-Market offering. | In December 2022, the Company issued a total of 675,400 flow-through common shares at an average $22.24 per common share for aggregate gross proceeds of $15.0 million. | ||||||||
Shares issued (in Shares) | 55,322 | 43,928 | 30,086 | |||||||
Share Premium | $ 0.1 | $ 4.2 | $ 2.2 | $ 1.6 | ||||||
Exploration expenditures | 0.2 | $ 6.5 | $ 4.7 | |||||||
Expiration of share options, description | The outstanding share options at December 31, 2022 expire at various dates between October 2023 and June 2024. | |||||||||
Common shares issued (in Shares) | 689,634 | 1,720,951 | ||||||||
Weighted average share price exercise options (in Dollars per share) | $ 18.74 | $ 22.39 | ||||||||
Restricted share units granted (in Shares) | 310,266 | |||||||||
Fair value grants | $ 0.2 | |||||||||
Fair value grants amortized | $ 0.1 | |||||||||
Remaining amortized amount | $ 2.2 | |||||||||
Common shares exchanged (in Shares) | 119,800 | |||||||||
Restricted stock units (in Shares) | 5,000 | |||||||||
Exercised options (in Shares) | 0.2 | |||||||||
Basic and diluted net loss | $ 7.4 | $ 0.9 | ||||||||
Stock option (in Shares) | 427,500 | |||||||||
Restricted stock units outstanding (in Shares) | 345,266 | |||||||||
Stock options and Restricted share units [Member] | ||||||||||
Shareholders' Equity (Details) [Line Items] | ||||||||||
Stock options term | 5 years | |||||||||
Warrants [Member] | ||||||||||
Shareholders' Equity (Details) [Line Items] | ||||||||||
Restricted share units vested (in Shares) | 128,800 | |||||||||
RSU [Member] | ||||||||||
Shareholders' Equity (Details) [Line Items] | ||||||||||
Restricted share units granted (in Shares) | 123,800 | |||||||||
Restricted stock units, description | Of these, 28,000 RSUs were granted to Board members, 75,200 RSUs were granted to members of senior management, and the remaining 20,600 RSUs were granted to other employees of the Company. | |||||||||
Fair value grants | $ 5.1 | $ 2.6 | ||||||||
Fair value grants amortized | 0.1 | |||||||||
Remaining amortized amount | $ 5 | |||||||||
Restricted share units granted (in Shares) | 40,000 | 40,000 | ||||||||
Board [Member] | RSU [Member] | ||||||||||
Shareholders' Equity (Details) [Line Items] | ||||||||||
Restricted stock units, description | Of these, 37,500 RSUs were granted to Board members, 232,266 RSUs were granted to members of senior management, and the remaining 40,500 RSUs were granted to other employees of the Company. | |||||||||
Fair value grants | $ 0.2 | |||||||||
Fair value grants amortized | $ 0.4 | |||||||||
Fair value amount | 2.6 | |||||||||
Directors [Member] | ||||||||||
Shareholders' Equity (Details) [Line Items] | ||||||||||
Fair value grants | $ 5.1 | |||||||||
Board Members [Member] | ||||||||||
Shareholders' Equity (Details) [Line Items] | ||||||||||
Stock options granted (in Shares) | 20,000 | |||||||||
Fair value | $ 0.7 | |||||||||
Board Members [Member] | RSU [Member] | ||||||||||
Shareholders' Equity (Details) [Line Items] | ||||||||||
Fair value grants | 0.9 | |||||||||
Restricted stock units granted (in Shares) | 10,000 | |||||||||
Equity financings [Member] | ||||||||||
Shareholders' Equity (Details) [Line Items] | ||||||||||
Value of common shares | 100 | |||||||||
Share effective amount | $ 750 | |||||||||
Shares issued (in Shares) | 313,666 | 350,000 | 345,000 | |||||||
Price per share (in Dollars per share) | $ 18.26 | $ 28.06 | $ 32.94 | |||||||
Net proceeds | $ 5.6 | |||||||||
Share Premium | 1.3 | 0.2 | $ 1.5 | $ 3.9 | ||||||
Gross proceeds | $ 9.8 | $ 11.4 | ||||||||
Exploration expenditures | $ 8.7 | $ 1.1 | ||||||||
Non-Brokered Private Placement [Member] | ||||||||||
Shareholders' Equity (Details) [Line Items] | ||||||||||
Agreement, description | During the year ended December 31, 2022, 540,834 options were exercised (2021 - 1,585,501) for proceeds of $3.9 million (2021 - $17.7 million) and 148,800 RSUs vested (2021 - 135,400). |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - Schedule of stock option and RSU transactions - CAD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule Of Stock Option And Rsu Transactions Abstract | ||
Number of Options Outstanding, beginning (in Shares) | 1,023,334 | 2,611,691 |
Weighted Average Exercise Price Outstanding, beginning (in Dollars per share) | $ 14.61 | $ 12.51 |
Amortized Value of options Outstanding, beginning | $ 8,125 | $ 22,524 |
Number of RSUs Outstanding, beginning (in Shares) | 173,800 | 135,450 |
Amortized Value of RSUs Outstanding, beginning | $ 572 | $ 487 |
Stock-based Compensation Outstanding, beginning | $ 8,697 | $ 23,011 |
Number of Options Outstanding, ending (in Shares) | 477,500 | 1,023,334 |
Weighted Average Exercise Price Outstanding, ending (in Dollars per share) | $ 15.85 | $ 14.61 |
Amortized Value of options Outstanding, ending | $ 4,117 | $ 8,125 |
Number of RSUs Outstanding, ending (in Shares) | 345,266 | 173,800 |
Amortized Value of RSUs Outstanding, ending | $ 538 | $ 572 |
Stock-based Compensation Outstanding, ending | $ 4,655 | $ 8,697 |
Number of Options Exercisable (in Shares) | 477,500 | 1,023,334 |
Number of Options, Granted (in Shares) | ||
Weighted Average Exercise Price, Granted (in Dollars per share) | ||
Amortized Value of options, Granted | ||
Number of RSUs, Granted (in Shares) | 320,266 | 173,800 |
Amortized Value of RSUs, Granted | $ 187 | $ 573 |
Stock-based Compensation, Granted | $ 187 | $ 573 |
Number of Options, Exercised option or vested RSU (in Shares) | (540,834) | (1,585,501) |
Weighted Average Exercise Price, Exercised option or vested RSU (in Dollars per share) | $ 13.54 | $ 11.17 |
Amortized Value of options, Exercised option or vested RSU | $ (3,974) | $ (14,370) |
Number of RSUs, Exercised option or vested RSU (in Shares) | (148,800) | (135,450) |
Amortized Value of RSUs, Exercised option or vested RSU | $ (3,172) | $ (3,413) |
Stock-based Compensation, Exercised option or vested RSU | $ (7,146) | $ (17,783) |
Number of Options, Expired (in Shares) | (5,000) | (2,856) |
Weighted Average Exercise Price, Expired (in Dollars per share) | $ 13.14 | $ 6.3 |
Amortized Value of options, Expired | $ (34) | $ (37) |
Number of RSUs, Expired (in Shares) | ||
Amortized Value of RSUs, Expired | ||
Stock-based Compensation, Expired | $ (34) | $ (37) |
Number of Options, Amortized value of stock-based compensation (in Shares) | ||
Weighted Average Exercise Price, Amortized value of stock-based compensation (in Dollars per share) | ||
Amortized Value of options, Amortized value of stock-based compensation | $ 8 | |
Number of RSUs, Amortized value of stock-based compensation (in Shares) | ||
Amortized Value of RSUs, Amortized value of stock-based compensation | $ 2,951 | $ 2,925 |
Stock-based Compensation, Amortized value of stock-based compensation | $ 2,951 | $ 2,933 |
Shareholders' Equity (Details_2
Shareholders' Equity (Details) - Schedule of outstanding share | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Shareholders' Equity (Details) - Schedule of outstanding share [Line Items] | |
Options Outstanding, Number outstanding | 477,500 |
Options Exercisable, Number Exercisable | 477,500 |
Exercise Price 16.94 [Member] | |
Shareholders' Equity (Details) - Schedule of outstanding share [Line Items] | |
Options Outstanding, Exercise price | $ / shares | $ 16.94 |
Options Outstanding, Number outstanding | 50,000 |
Options Outstanding, Remaining contractual life | 10 months |
Options Exercisable, Number Exercisable | 50,000 |
Exercise Price 15.46 [Member] | |
Shareholders' Equity (Details) - Schedule of outstanding share [Line Items] | |
Options Outstanding, Exercise price | $ / shares | $ 15.46 |
Options Outstanding, Number outstanding | 377,500 |
Options Outstanding, Remaining contractual life | 1 year |
Options Exercisable, Number Exercisable | 377,500 |
Exercise Price 17.72 [Member] | |
Shareholders' Equity (Details) - Schedule of outstanding share [Line Items] | |
Options Outstanding, Exercise price | $ / shares | $ 17.72 |
Options Outstanding, Number outstanding | 50,000 |
Options Outstanding, Remaining contractual life | 1 year 6 months |
Options Exercisable, Number Exercisable | 50,000 |
Shareholders' Equity (Details_3
Shareholders' Equity (Details) - Schedule of basic and diluted earnings per common share - shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule Of Basic And Diluted Earnings Per Common Share Abstract | ||
Weighted average number of common shares outstanding | 80,058,861 | 76,413,554 |
Dilutive effect of options | 1,023,334 | |
Dilutive effect of RSUs | 163,800 | |
Total | 80,058,861 | 77,600,688 |
Cash Flow Items (Details) - Sch
Cash Flow Items (Details) - Schedule of adjustment for other non-cash items within operating activities - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule Of Adjustment For Other Non Cash Items Within Operating Activities Abstract | ||
Impairment of investment in associate | $ 873 | |
Equity loss of associate | 207 | 221 |
Unrealized gain on convertible notes receivable | (25) | (104) |
Accrued interest income on convertible notes receivable | (39) | (39) |
Depreciation | 84 | 85 |
Finance costs, net | 72 | 110 |
Effects of exchange rate fluctuation on cash and cash equivalents | (3,216) | 184 |
Total | $ (2,044) | $ 457 |
Fair Value of Financial Asset_3
Fair Value of Financial Assets and Liabilities (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value of Financial Assets and Liabilities (Details) [Line Items] | ||
Maturity term | 1 year | |
Short-term deposits | $ 81,690 | $ 29,243 |
Current financial liabilities | $ 51,993 | 17,301 |
Bears interest | 6.50% | |
Liquidity Risk [Member] | ||
Fair Value of Financial Assets and Liabilities (Details) [Line Items] | ||
Maturity term | 30 days | |
Cash and cash equivalents | $ 46,200 | 11,500 |
Short-term deposits | 81,700 | 29,200 |
Current financial liabilities | 47,300 | $ 12,200 |
Investment Risk [Member] | ||
Fair Value of Financial Assets and Liabilities (Details) [Line Items] | ||
Investments | $ 3,600 |
Fair Value of Financial Asset_4
Fair Value of Financial Assets and Liabilities (Details) - Schedule of fair values of financial assets and liabilities $ in Thousands, $ in Millions | Dec. 31, 2022 CAD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CAD ($) |
Assets | |||
Cash and cash equivalents | $ 46,150 | $ 11,523 | |
Short-term deposits | 81,690 | $ 80.4 | 29,243 |
Amounts receivable and prepaid expenses | 6,260 | 5,229 | |
Investment in marketable securities | 3,696 | 3,367 | |
Convertible notes receivable | 631 | 606 | |
Long-term receivables | 51,703 | 13,038 | |
Total Assets | 190,130 | 63,006 | |
Liabilities | |||
Accounts payable and accrued liabilities | 42,956 | 12,165 | |
Secured note | 263,541 | ||
Total Liabilities | 306,497 | 12,165 | |
Carrying Amount [Member] | |||
Assets | |||
Cash and cash equivalents | 46,150 | 11,523 | |
Short-term deposits | 81,690 | 29,243 | |
Amounts receivable and prepaid expenses | 6,260 | 5,229 | |
Investment in marketable securities | 3,696 | 3,367 | |
Convertible notes receivable | 631 | 606 | |
Long-term receivables | 51,703 | 13,038 | |
Total Assets | 190,130 | 63,006 | |
Liabilities | |||
Accounts payable and accrued liabilities | 42,956 | 12,165 | |
Secured note | 263,541 | ||
Total Liabilities | 306,497 | 12,165 | |
Level 1 [Member] | |||
Assets | |||
Cash and cash equivalents | 46,150 | 11,523 | |
Short-term deposits | 81,690 | 29,243 | |
Amounts receivable and prepaid expenses | 6,260 | 5,229 | |
Investment in marketable securities | 3,696 | 3,367 | |
Convertible notes receivable | |||
Long-term receivables | 51,703 | 13,038 | |
Total Assets | 189,499 | 62,400 | |
Liabilities | |||
Accounts payable and accrued liabilities | 42,956 | 12,165 | |
Secured note | |||
Total Liabilities | 42,956 | 12,165 | |
Level 2 [Member] | |||
Assets | |||
Cash and cash equivalents | |||
Short-term deposits | |||
Amounts receivable and prepaid expenses | |||
Investment in marketable securities | |||
Convertible notes receivable | |||
Long-term receivables | |||
Total Assets | |||
Liabilities | |||
Accounts payable and accrued liabilities | |||
Secured note | |||
Total Liabilities | |||
Level 3 [Member] | |||
Assets | |||
Cash and cash equivalents | |||
Short-term deposits | |||
Amounts receivable and prepaid expenses | |||
Investment in marketable securities | |||
Convertible notes receivable | 631 | 606 | |
Long-term receivables | |||
Total Assets | 631 | 606 | |
Liabilities | |||
Accounts payable and accrued liabilities | |||
Secured note | 263,541 | ||
Total Liabilities | $ 263,541 |
Fair Value of Financial Asset_5
Fair Value of Financial Assets and Liabilities (Details) - Schedule of contractual cash flow requirements for its financial liabilities on repayment or maturity periods $ in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 CAD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Fair Value of Financial Assets and Liabilities (Details) - Schedule of contractual cash flow requirements for its financial liabilities on repayment or maturity periods [Line Items] | |||
Secured note including interest | $ 263,541 | $ 14.7 | |
Flow-through share expenditures | 15,023 | ||
Lease obligation | 1,701 | ||
Total carrying amount | 280,265 | ||
Less than 1 year [Member] | |||
Fair Value of Financial Assets and Liabilities (Details) - Schedule of contractual cash flow requirements for its financial liabilities on repayment or maturity periods [Line Items] | |||
Secured note including interest | 19,808 | ||
Flow-through share expenditures | 15,023 | ||
Lease obligation | 669 | ||
Total carrying amount | 35,500 | ||
1-3 years [Member] | |||
Fair Value of Financial Assets and Liabilities (Details) - Schedule of contractual cash flow requirements for its financial liabilities on repayment or maturity periods [Line Items] | |||
Secured note including interest | 39,616 | ||
Flow-through share expenditures | |||
Lease obligation | 834 | ||
Total carrying amount | 40,450 | ||
3-5 years [Member] | |||
Fair Value of Financial Assets and Liabilities (Details) - Schedule of contractual cash flow requirements for its financial liabilities on repayment or maturity periods [Line Items] | |||
Secured note including interest | 39,616 | ||
Flow-through share expenditures | |||
Lease obligation | 106 | ||
Total carrying amount | 39,722 | ||
Greater than 5 years [Member] | |||
Fair Value of Financial Assets and Liabilities (Details) - Schedule of contractual cash flow requirements for its financial liabilities on repayment or maturity periods [Line Items] | |||
Secured note including interest | 164,501 | ||
Flow-through share expenditures | |||
Lease obligation | 92 | ||
Total carrying amount | $ 164,593 |
Corporate and Administrative _3
Corporate and Administrative Expenses (Details) - Schedule of corporate and administrative expenses - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Corporate and Administrative Expenses (Details) - Schedule of corporate and administrative expenses [Line Items] | ||
Corporate and administrative expenses | $ 16,090 | $ 13,379 |
Employee compensation [Member] | ||
Corporate and Administrative Expenses (Details) - Schedule of corporate and administrative expenses [Line Items] | ||
Corporate and administrative expenses | 7,479 | 5,781 |
Stock-based Compensation [Member] | ||
Corporate and Administrative Expenses (Details) - Schedule of corporate and administrative expenses [Line Items] | ||
Corporate and administrative expenses | 3,138 | 3,506 |
Professional fees [Member] | ||
Corporate and Administrative Expenses (Details) - Schedule of corporate and administrative expenses [Line Items] | ||
Corporate and administrative expenses | 2,591 | 1,828 |
Other general and administrative [Member] | ||
Corporate and Administrative Expenses (Details) - Schedule of corporate and administrative expenses [Line Items] | ||
Corporate and administrative expenses | $ 2,882 | $ 2,264 |
Related party disclosures (Deta
Related party disclosures (Details) - Schedule of compensation to key management personnel - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Compensation of directors: | ||
Compensation of key management personnel | $ 11,153 | $ 9,134 |
Compensation of directors [Member] | ||
Compensation of directors: | ||
Compensation of key management personnel | 1,235 | 1,135 |
Compensation of key management personnel [Member] | ||
Compensation of directors: | ||
Compensation of key management personnel | 9,918 | 7,999 |
Directors’ fees [Member] | Compensation of directors [Member] | ||
Compensation of directors: | ||
Compensation of key management personnel | 560 | 431 |
Stock-based Compensation [Member] | Compensation of directors [Member] | ||
Compensation of directors: | ||
Compensation of key management personnel | 675 | 704 |
Stock-based Compensation [Member] | Compensation of key management personnel [Member] | ||
Compensation of directors: | ||
Compensation of key management personnel | 2,026 | 2,226 |
Salaries and consulting fees [Member] | Compensation of key management personnel [Member] | ||
Compensation of directors: | ||
Compensation of key management personnel | $ 7,892 | $ 5,773 |
Income Taxes (Details)
Income Taxes (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Income Tax Text Block Abstract | ||
Income tax recovery | $ 8,300 | |
Revaluation of income tax | $ 50 | |
Income tax rates | 26.68% | 26.63% |
Deductible temporary difference of deferred tax | $ 2,100 | $ 3,200 |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of deferred tax recovery - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule Of Deferred Tax Recovery Abstract | ||
Deferred tax expense (recovery) | $ 8,268 | $ 4,630 |
Total | $ 8,268 | $ 4,630 |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of tax expense recognized in other comprehensive income or directly in equity - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule Of Tax Expense Recognized In Other Comprehensive Income Or Directly In Equity Abstract | ||
Financing costs - recognized in statement of equity | $ (330) | $ (438) |
Unrealized gain or loss on marketable securities - recognized in OCI | 831 | (61) |
Total | $ 501 | $ (499) |
Income Taxes (Details) - Sche_3
Income Taxes (Details) - Schedule of reconciliation of the effective rate of income tax - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule Of Reconciliation Of The Effective Rate Of Income Tax Abstract | ||
Income (loss) before income taxes | $ 874 | $ 5,525 |
Tax expense calculated | 26.68% | 26.63% |
Tax expense calculated | ||
Using statutory rates | $ 233 | $ 1,471 |
Non-deductible items | 2,280 | 303 |
Difference in foreign tax rates | 103 | (8) |
Change in deferred tax rates | (116) | (132) |
Movement in tax benefits not recognized | 2,996 | 949 |
Impact of true-up of prior year balances | 124 | 1 |
Renouncement of flow-through expenditures | 2,525 | 2,020 |
Other | 123 | 24 |
Income tax expense (recovery) | $ 8,268 | $ 4,630 |
Income Taxes (Details) - Sche_4
Income Taxes (Details) - Schedule of deferred income tax assets and liabilities - CAD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred income tax liabilities: | ||
Net deferred income tax liabilities | $ (31,934) | $ (23,164) |
Property and equipment [Member] | ||
Deferred income tax assets: | ||
Property and equipment | 565 | 292 |
Provision for reclamation liabilities [Member] | ||
Deferred income tax assets: | ||
Property and equipment | 1,235 | 595 |
Financing costs [Member] | ||
Deferred income tax assets: | ||
Property and equipment | 2,487 | 2,080 |
Non-capital loss carryforwards [Member] | ||
Deferred income tax assets: | ||
Property and equipment | 38,255 | 33,098 |
Mineral interests [Member] | ||
Deferred income tax liabilities: | ||
Net deferred income tax liabilities | (63,710) | (59,229) |
Secured note [Member] | ||
Deferred income tax liabilities: | ||
Net deferred income tax liabilities | $ (10,766) |
Income Taxes (Details) - Sche_5
Income Taxes (Details) - Schedule of unrecognized deferred tax assets - CAD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Marketable securities [Member] | ||
Income Taxes (Details) - Schedule of unrecognized deferred tax assets [Line Items] | ||
Unrecognized deferred tax assets | $ 137 | $ 182 |
Loss carryforwards [Member] | ||
Income Taxes (Details) - Schedule of unrecognized deferred tax assets [Line Items] | ||
Unrecognized deferred tax assets | 834 | 798 |
Investment tax credits [Member] | ||
Income Taxes (Details) - Schedule of unrecognized deferred tax assets [Line Items] | ||
Unrecognized deferred tax assets | 1,481 | 1,481 |
Foreign tax credits [Member] | ||
Income Taxes (Details) - Schedule of unrecognized deferred tax assets [Line Items] | ||
Unrecognized deferred tax assets | 268 | 268 |
Mineral properties [Member] | ||
Income Taxes (Details) - Schedule of unrecognized deferred tax assets [Line Items] | ||
Unrecognized deferred tax assets | 437 | 140 |
Provision for reclamation liabilities [Member] | ||
Income Taxes (Details) - Schedule of unrecognized deferred tax assets [Line Items] | ||
Unrecognized deferred tax assets | $ 1,091 | $ 1,083 |
Income Taxes (Details) - Sche_6
Income Taxes (Details) - Schedule of income tax attributes $ in Thousands | 12 Months Ended |
Dec. 31, 2022 CAD ($) | |
Canadian non-capital losses [Member] | |
Income Taxes (Details) - Schedule of income tax attributes [Line Items] | |
Income tax attributes | $ 143,103 |
Expiration date | 2042 |
Canadian capital losses [Member] | |
Income Taxes (Details) - Schedule of income tax attributes [Line Items] | |
Income tax attributes | $ 2,571 |
Expiration date | Indefinite |
Canadian tax basis of mineral interest [Member] | |
Income Taxes (Details) - Schedule of income tax attributes [Line Items] | |
Income tax attributes | $ 406,278 |
Expiration date | Indefinite |
US non-capital losses [Member] | |
Income Taxes (Details) - Schedule of income tax attributes [Line Items] | |
Income tax attributes | $ 480 |
Expiration date | 2042 |
US tax basis of mineral interest [Member] | |
Income Taxes (Details) - Schedule of income tax attributes [Line Items] | |
Income tax attributes | $ 23,201 |
Expiration date | Indefinite |
Commitments and contingencies_2
Commitments and contingencies (Details) $ in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2022 CAD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CAD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Commitments and contingencies (Details) [Line Items] | |||||
Construction cost | $ 32.8 | $ 104.6 | $ 27 | ||
Company paid | 21.2 | ||||
Facilities Agreement | 54.2 | ||||
Reinforcement security | $ 54.2 | ||||
Project power consumption | 8 years | 8 years | |||
Paid BC Hydro. | $ 43.7 | ||||
Interest | 6.50% | 6.50% | |||
Payable (in Dollars) | $ 14.6 | ||||
Additional expenditure | $ 2.3 | ||||
Potential tax indemnification | 10.8 | ||||
Potential interest | 2.9 | ||||
Investors deposited | 9.3 | $ 9.3 | |||
BC Hydro [Member] | |||||
Commitments and contingencies (Details) [Line Items] | |||||
Company paid | $ 11.7 |
Commitments and contingencies_3
Commitments and contingencies (Details) - Schedule of commitments and contingencies $ in Thousands | Dec. 31, 2021 CAD ($) |
Commitments and contingencies (Details) - Schedule of commitments and contingencies [Line Items] | |
Commitments payments | $ 265,850 |
2023 [Member] | |
Commitments and contingencies (Details) - Schedule of commitments and contingencies [Line Items] | |
Commitments payments | 134,454 |
2024-25 [Member] | |
Commitments and contingencies (Details) - Schedule of commitments and contingencies [Line Items] | |
Commitments payments | 48,662 |
2026-27 [Member] | |
Commitments and contingencies (Details) - Schedule of commitments and contingencies [Line Items] | |
Commitments payments | 41,374 |
2028-29 [Member] | |
Commitments and contingencies (Details) - Schedule of commitments and contingencies [Line Items] | |
Commitments payments | 41,360 |
Secured note – interest expense [Member] | |
Commitments and contingencies (Details) - Schedule of commitments and contingencies [Line Items] | |
Commitments payments | 138,656 |
Secured note – interest expense [Member] | 2023 [Member] | |
Commitments and contingencies (Details) - Schedule of commitments and contingencies [Line Items] | |
Commitments payments | 19,808 |
Secured note – interest expense [Member] | 2024-25 [Member] | |
Commitments and contingencies (Details) - Schedule of commitments and contingencies [Line Items] | |
Commitments payments | 39,616 |
Secured note – interest expense [Member] | 2026-27 [Member] | |
Commitments and contingencies (Details) - Schedule of commitments and contingencies [Line Items] | |
Commitments payments | 39,616 |
Secured note – interest expense [Member] | 2028-29 [Member] | |
Commitments and contingencies (Details) - Schedule of commitments and contingencies [Line Items] | |
Commitments payments | 39,616 |
Capital expenditure obligations [Member] | |
Commitments and contingencies (Details) - Schedule of commitments and contingencies [Line Items] | |
Commitments payments | 104,688 |
Capital expenditure obligations [Member] | 2023 [Member] | |
Commitments and contingencies (Details) - Schedule of commitments and contingencies [Line Items] | |
Commitments payments | 98,128 |
Capital expenditure obligations [Member] | 2024-25 [Member] | |
Commitments and contingencies (Details) - Schedule of commitments and contingencies [Line Items] | |
Commitments payments | 6,560 |
Capital expenditure obligations [Member] | 2026-27 [Member] | |
Commitments and contingencies (Details) - Schedule of commitments and contingencies [Line Items] | |
Commitments payments | |
Capital expenditure obligations [Member] | 2028-29 [Member] | |
Commitments and contingencies (Details) - Schedule of commitments and contingencies [Line Items] | |
Commitments payments | |
Flow-through share expenditures [Member] | |
Commitments and contingencies (Details) - Schedule of commitments and contingencies [Line Items] | |
Commitments payments | 15,023 |
Flow-through share expenditures [Member] | 2023 [Member] | |
Commitments and contingencies (Details) - Schedule of commitments and contingencies [Line Items] | |
Commitments payments | 15,023 |
Flow-through share expenditures [Member] | 2024-25 [Member] | |
Commitments and contingencies (Details) - Schedule of commitments and contingencies [Line Items] | |
Commitments payments | |
Flow-through share expenditures [Member] | 2026-27 [Member] | |
Commitments and contingencies (Details) - Schedule of commitments and contingencies [Line Items] | |
Commitments payments | |
Flow-through share expenditures [Member] | 2028-29 [Member] | |
Commitments and contingencies (Details) - Schedule of commitments and contingencies [Line Items] | |
Commitments payments | |
Mineral interests [Member] | |
Commitments and contingencies (Details) - Schedule of commitments and contingencies [Line Items] | |
Commitments payments | 5,782 |
Mineral interests [Member] | 2023 [Member] | |
Commitments and contingencies (Details) - Schedule of commitments and contingencies [Line Items] | |
Commitments payments | 826 |
Mineral interests [Member] | 2024-25 [Member] | |
Commitments and contingencies (Details) - Schedule of commitments and contingencies [Line Items] | |
Commitments payments | 1,652 |
Mineral interests [Member] | 2026-27 [Member] | |
Commitments and contingencies (Details) - Schedule of commitments and contingencies [Line Items] | |
Commitments payments | 1,652 |
Mineral interests [Member] | 2028-29 [Member] | |
Commitments and contingencies (Details) - Schedule of commitments and contingencies [Line Items] | |
Commitments payments | 1,652 |
Lease obligation [Member] | |
Commitments and contingencies (Details) - Schedule of commitments and contingencies [Line Items] | |
Commitments payments | 1,701 |
Lease obligation [Member] | 2023 [Member] | |
Commitments and contingencies (Details) - Schedule of commitments and contingencies [Line Items] | |
Commitments payments | 669 |
Lease obligation [Member] | 2024-25 [Member] | |
Commitments and contingencies (Details) - Schedule of commitments and contingencies [Line Items] | |
Commitments payments | 834 |
Lease obligation [Member] | 2026-27 [Member] | |
Commitments and contingencies (Details) - Schedule of commitments and contingencies [Line Items] | |
Commitments payments | 106 |
Lease obligation [Member] | 2028-29 [Member] | |
Commitments and contingencies (Details) - Schedule of commitments and contingencies [Line Items] | |
Commitments payments | $ 92 |