Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2023 shares | |
Document Information Line Items | |
Entity Registrant Name | Seabridge Gold Inc. |
Trading Symbol | SA |
Document Type | 40-F |
Current Fiscal Year End Date | --12-31 |
Entity Common Stock, Shares Outstanding | 86,108,019 |
Amendment Flag | false |
Entity Central Index Key | 0001231346 |
Entity Current Reporting Status | Yes |
Document Period End Date | Dec. 31, 2023 |
Document Fiscal Year Focus | 2023 |
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 Address, Country | CA |
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 Incorporation, State or Country Code | Z4 |
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 |
Document Financial Statement Error Correction [Flag] | true |
Document Financial Statement Restatement Recovery Analysis [Flag] | true |
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, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 82,438 | $ 46,150 |
Short-term deposits | 81,690 | |
Amounts receivable and prepaid expenses | 7,763 | 8,220 |
Investment in marketable securities | 3,750 | 3,696 |
Convertible notes receivable | 631 | |
Total current assets | 93,951 | 140,387 |
Non-current assets | ||
Investment in associate | 1,247 | 1,389 |
Long-term receivables and other assets | 105,947 | 51,703 |
Mineral interests, property and equipment | 1,128,464 | 881,497 |
Reclamation deposits | 21,350 | 20,643 |
Total non-current assets | 1,257,008 | 955,232 |
Total assets | 1,350,959 | 1,095,619 |
Current liabilities | ||
Accounts payable and accrued liabilities | 32,734 | 42,956 |
Flow-through share premium | 5,543 | 4,183 |
Lease obligations | 373 | 511 |
Provision for reclamation liabilities | 759 | 4,343 |
Total current liabilities | 39,409 | 51,993 |
Non-current liabilities | ||
Secured note liabilities | 573,888 | 263,541 |
Deferred income tax liabilities | 31,934 | |
Lease obligations | 1,063 | 1,115 |
Provision for reclamation liabilities | 6,676 | 6,503 |
Total non-current liabilities | 581,627 | 303,093 |
Total liabilities | 621,036 | 355,086 |
Shareholders’ equity | 729,923 | 740,533 |
Total liabilities and shareholders’ equity | $ 1,350,959 | $ 1,095,619 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Profit or loss [abstract] | ||
Remeasurement of secured notes | $ (29,690) | $ 36,967 |
Corporate and administrative expenses | (17,441) | (16,090) |
Impairment of investment in associate | (873) | |
Equity loss of associate | (208) | (207) |
Other income - flow-through shares | 4,183 | 1,366 |
Environmental rehabilitation expense | (6,722) | |
Unrealized loss on convertible notes receivable | (88) | (16) |
Foreign exchange gain (loss) | 9,282 | (12,874) |
Finance costs and other | (2,204) | (3,471) |
Interest income (expense) | (1,795) | 2,794 |
Earnings (loss) before income taxes | (37,961) | 874 |
Income tax recovery (expense) | 8,695 | (8,268) |
Net loss for the year | (29,266) | (7,394) |
Remeasurement of secured notes | (84,393) | 2,912 |
Change in fair value of marketable securities | 54 | 329 |
Tax impact | 22,780 | (831) |
Total other comprehensive income (loss) | (61,559) | 2,410 |
Comprehensive loss for the year | $ (90,825) | $ (4,984) |
Weighted average number of common shares outstanding | ||
Basic (in Shares) | 83,001,989 | 80,058,861 |
Diluted (in Shares) | 83,001,989 | 80,058,861 |
Loss per common share | ||
Basic (in Dollars per share) | $ (0.35) | $ (0.09) |
Diluted (in Dollars per share) | $ (0.35) | $ (0.09) |
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, 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 loss 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 | ||||||
Share issuance - At-The-Market offering | $ 43,681 | 43,681 | |||||
Share issuance - At-The-Market offering (in Shares) | 2,516,839 | ||||||
Share issuance - Interest expense paid in shares | $ 19,737 | 19,737 | |||||
Share issuance - Interest expense paid in shares (in Shares) | 1,285,178 | ||||||
Share issuance - Private placement | $ 14,011 | 14,011 | |||||
Share issuance - Private placement (in Shares) | 875,150 | ||||||
Share issuance - Options exercised | $ 1,150 | (2,815) | 2,438 | 773 | |||
Share issuance - Options exercised (in Shares) | 50,000 | ||||||
Share issuance - RSUs vested | $ 823 | (823) | |||||
Share issuance - RSUs vested (in Shares) | 41,840 | ||||||
Share issuance costs | $ (1,715) | (1,715) | |||||
Deferred tax on share issuance costs | 459 | 459 | |||||
Stock-based compensation | 3,269 | 3,269 | |||||
Expired options | (886) | 886 | |||||
Other comprehensive loss | (61,559) | (61,559) | |||||
Net loss for the year | (29,266) | (29,266) | |||||
Balance at Dec. 31, 2023 | $ 934,608 | $ 3,400 | $ 39,484 | $ (186,643) | $ (60,926) | $ 729,923 | |
Balance (in Shares) at Dec. 31, 2023 | 86,108,019 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Operating Activities | ||
Net loss | $ (29,266) | $ (7,394) |
Adjustment for non-cash items: | ||
Remeasurement loss (gain) on secured notes | 29,690 | (36,967) |
Environmental rehabilitation expense | 6,722 | |
Stock-based compensation | 3,269 | 3,138 |
Other income - flow-through shares | (4,183) | (1,366) |
Income tax (recovery) expense | (8,695) | 8,268 |
Unrealized foreign exchange (gain) loss | (9,150) | 21,158 |
Other non-cash items | 362 | (2,044) |
Adjustment for cash items: | ||
Environmental rehabilitation disbursements | (3,664) | (4,499) |
Changes in working capital items: | ||
Amounts receivable and prepaid expenses | 457 | (845) |
Accounts payable and accrued liabilities | (357) | 541 |
Net cash used in operating activities | (21,537) | (13,288) |
Investing Activities | ||
Mineral interests, property and equipment | (230,162) | (177,991) |
Redemption of short-term deposits | 151,854 | 349,378 |
Investment in short-term deposits | (70,164) | (401,825) |
Long-term receivables and other assets | (54,244) | (30,545) |
Interest paid | (14,735) | |
Redemption of convertible notes receivable | 528 | |
Investment in security deposits | (707) | (5,412) |
Net cash used in investing activities | (202,895) | (281,130) |
Financing Activities | ||
Secured notes | 198,825 | 282,263 |
Share issuance net of costs | 61,519 | 36,579 |
Exercise of options | 773 | 7,321 |
Payment of lease liabilities | (666) | (334) |
Net cash from financing activities | 260,451 | 325,829 |
Effects of exchange rate fluctuation on cash and cash equivalents | 269 | 3,216 |
Net increase in cash and cash equivalents during the year | 36,288 | 34,627 |
Cash and cash equivalents, beginning of the year | 46,150 | 11,523 |
Cash and cash equivalents, end of the year | $ 82,438 | $ 46,150 |
Reporting Entity
Reporting Entity | 12 Months Ended |
Dec. 31, 2023 | |
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 14, 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, 2023 | |
Basis of Preparation [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 27, 2024. 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. |
Summary of Material Accounting
Summary of Material Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Significant Accounting Policies [Abstract] | |
Summary of material accounting policies | 3. Summary of material accounting policies The material accounting policy information used in the preparation of these consolidated financial statements is 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 “L”, 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. 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 the Company’s KSM Project (“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 assets that require a significant amount of time to get ready for their intended use, including projects that are in the development or construction stages. Capitalization of borrowing costs ceases when such assets are ready for their intended use. D. Depreciation Effective from the point an asset is available for its intended use, the assets 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. E. 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. F. Impairment of 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). G. 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. H. 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. I. Stock-based compensation options and restricted share units (“RSUs”) 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 models share their limitations. J. 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). K. 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 RSUs. 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. L. 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 liabilities The Company has elected to account for its secured note liabilities and all embedded derivatives as a single financial liability. The change in fair value of the secured note liabilities 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). M. Accounting pronouncements New accounting standards and interpretations issued and effective: IAS 1 - Presentation of financial statements: disclosure of material accounting policy information On January 1, 2023, the Company adopted amendments to IAS 1 that requires companies to disclose material accounting policies instead of significant accounting policies. The adoption of these amendments resulted in certain changes to the Company’s accounting policy disclosures. The Company’s material accounting policies are disclosed in Note 3 – Summary of material accounting policies herein. IAS 8 - Accounting Policies, Changes in Accounting Estimates and Errors In February 2021, the IASB issued Definition of Accounting Estimates, which made amendments to IAS 8. The amendments replaced the definition of a change in accounting estimates with a definition of accounting estimates. Under the new definition, accounting estimates are “monetary amounts in financial statements that are subject to measurement uncertainty”. Accounting estimates are developed if accounting policies require items in financial statements to be measured in a way that involves measurement uncertainty. The amendments clarify that a change in an accounting estimate that results from new information or new developments is not the correction of an error. In addition, the effects of a change in an input or a measurement technique used to develop an accounting estimate are changes in accounting estimates if they do not result from the correction of prior period errors. A change in an accounting estimate may affect only the current period’s Consolidated Statements of Operations and Comprehensive Income, or the Consolidated Statements of Operations and Comprehensive Income of both the current period and future periods. The effect of the change relating to the current period is recognized as income or expense in the current period. The effect, if any, on future periods is recognized as income or expense in those future periods. The amendments apply for annual periods beginning on or after January 1, 2023 and early adoption was permitted. The Company adopted the amendments effective January 1, 2023. The application of these amendments did not have a material impact on the Company’s consolidated financial statements. IAS 12 - Deferred Tax In May 2021, the IASB issued Deferred Tax related to Assets and Liabilities Arising from a Single Transaction which amended IAS 12, Income Taxes (“IAS 12”). Prior to the amendments, IAS 12 contained a recognition exemption whereby deferred income tax assets and liabilities were not recognized for temporary differences arising on initial recognition of assets and liabilities, other than in business combinations, that affect neither accounting nor taxable income. The amendments narrowed the scope of the recognition exemption in IAS 12 so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences. The Company applied the amendments to IAS 12 to its consolidated financial statements for the annual reporting period beginning on January 1, 2023. The application of these amendments did not have an impact on the Company’s consolidated financial statements. IAS 12 - International Tax Reform - Pillar Two Model Rules On May 23, 2023, the IASB issued amendments to IAS 12 which introduce a temporary exception from accounting for deferred taxes arising from the implementation of the Organization for Economic Co-operation and Development (“OECD”) Pillar Two model rules. The amendments provide relief from recognizing deferred taxes related to the OECD Pillar two income taxes as well as any related disclosure. The Company has applied the exception immediately upon issuance of the amendment and retrospectively in accordance with IAS 8 for the 2023 fiscal year. Accounting pronouncements issued but not yet effective: On January 23, 2020 and October 31, 2022, the IASB issued amendments to IAS 1 to clarify that the classification of liabilities as current or non-current should be based on rights that exist at the end of the reporting period and that classification is unaffected by expectations about whether an entity will exercise its right to defer settlement of a liability. For liabilities with covenants, the amendments clarify that only covenants with which an entity is required to comply on or before the reporting date affect the classification as current or non-current. The Company will adopt the amendments to IAS 1 effective January 1, 2024. These amendments are not expected to have a significant impact on the Company’s statement of financial position on the date of adoption. On September 22, 2022, the IASB issued amendments to IFRS 16 to add subsequent measurement requirements for sale and leaseback transactions, particularly those with variable lease payments. The amendments require the seller-lessee to subsequently measure lease liabilities in a way such that it does not recognize any gain or loss relating to the right of use it retains. The amendments are effective on January 1, 2024 and are not expected to have a significant impact on the Company’s financial statements. On May 25, 2023, the IASB issued amendments to IAS 7 requiring entities to provide qualitative and quantitative information about their supplier finance arrangements. In connection with the amendments to IAS 7, the IASB also issued amendments to IFRS 7 requiring entities to disclose whether they have accessed, or have access to, supplier finance arrangements that would provide the entity with extended payment terms or the suppliers with early payment terms. These amendments are effective on January 1, 2024, and are not expected to have a significant impact on the Company’s financial statements. On August 15, 2023, the IASB issued amendments to IAS 21 to specify how to assess whether a currency is exchangeable and how to determine the exchange rate when it is not exchangeable. The amendments specify that a currency is exchangeable when it can be exchanged through market or exchange mechanisms that create enforceable rights and obligations without undue delay at the measurement date and the specified purpose. For non-exchangeable currencies, an entity is required to estimate the spot exchange rate as the rate that would have applied to an orderly exchange transaction between market participants at the measurement date under prevailing economic conditions. The amendments are effective on January 1, 2025 and are not expected to have a significant impact on the Company’s financial statements. |
Critical Accounting Judgments a
Critical Accounting Judgments and Estimation Uncertainty | 12 Months Ended |
Dec. 31, 2023 | |
Critical Accounting Judgments and Estimation Uncertainty [Abstract] | |
Critical accounting judgments and estimation uncertainty | 4. Critical accounting judgments and estimation uncertainty The preparation of consolidated financial statements in accordance with IFRS requires management to make judgments, estimates and assumptions that affect the amounts reported in the consolidated financial statements and the application of the Company’s accounting policies, which are described in Note 3. Management believes that the estimates used in the preparation of the consolidated financial statements are reasonable; however, actual results could differ from those estimates. The key areas of significant judgments, estimates and assumptions are discussed below. (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). Impairment of mineral interests, property and equipment 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). Judgment is required to determine whether there are indications that the carrying amount of an exploration project is unlikely to be recovered in full from the successful development or the sale of the project. (ii) Key sources of estimation uncertainty Mineral reserves and resources Mineral reserves and resources have been estimated by qualified persons as defined in accordance with Canadian Securities Administrators’ National Instrument 43-101 Standards of Disclosure for Mineral Projects requirements. Mineral reserve and resource estimates include numerous uncertainties and depend heavily on geological interpretations and statistical inferences drawn from drilling and other data, and require estimates of the future price for the commodity and the future cost of operations. The mineral reserve and resource estimates are subject to uncertainty and actual results may vary from these estimates. Results from drilling, testing and production, as well as material changes in metal prices and operating costs subsequent to the date of an estimate, may justify revision of such estimate. A number of accounting estimates, as described in the relevant accounting policy notes, are impacted by the mineral reserve and resource estimates: ● Mineral properties and determination of technical feasibility and commercial viability. The application of the Company’s accounting policy for exploration and evaluation expenditures requires judgment in determining whether future economic benefits may be realized, which are based on assumptions about future events and circumstances ● Impairment analysis of non-financial assets ● Estimates of timing of cash outlays for asset retirement obligations, and ● The valuation of the secured note liabilities 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. Reclamation Liabilities Provisions for reclamation require the use of estimates of the future costs the Company will incur to complete the reclamation and remediation work required to comply with existing laws and regulations at each project site, as well as the timing of the reclamation activities and estimated discount rate. The Company assesses and revises its reclamation provision on a periodic basis or when new material information becomes available. Adjustments to the estimated amount and timing of future reclamation cash flows are a normal occurrence in light of the significant judgments and estimates involved. Actual costs incurred may differ from those amounts estimated. Changes in future costs could materially impact the estimate of reclamation provision. The provision represents management’s best estimate of the present value of the future reclamation and remediation costs based on environmental disturbances as at the reporting date. A change in any, or a combination of, the key assumptions used to determine the provisions, could have a material impact on the carrying value of the provisions. Secured note liabilities The Company measures the fair value of its secured note liabilities using a discounted cash flow model with a Monte Carlo simulation. Key assumptions into the models include future precious and base metals prices, discount rates, forecasted metals 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 liabilities. There is significant estimation uncertainty with respect to the application of the key assumptions in determining the fair value of the secured note liabilities. Refer to Note 12 for further information. |
Cash and Cash Equivalents and S
Cash and Cash Equivalents and Short-Term Deposits | 12 Months Ended |
Dec. 31, 2023 | |
Cash and Cash Equivalents and Short-Term Deposits [Abstract] | |
Cash and cash equivalents and short-term deposits | 5. Cash and cash equivalents and short-term deposits ($000s) December 31, December 31, Cash and cash equivalents 82,438 46,150 Short-term deposits - 81,690 82,438 127,840 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. |
Amounts Receivable and Prepaid
Amounts Receivable and Prepaid Expenses | 12 Months Ended |
Dec. 31, 2023 | |
Amounts Receivable and Prepaid Expenses [Abstract] | |
Amounts receivable and prepaid expenses | 6. Amounts receivable and prepaid expenses ($000s) December 31, December 31, HST 4,493 4,247 Prepaid expenses and other receivables 3,270 3,973 7,763 8,220 |
Investments
Investments | 12 Months Ended |
Dec. 31, 2023 | |
Investments [Abstract] | |
Investments | 7. Investments ($000s) January 1, Fair value Loss of Impairment Additions December 31, Current assets: Investments in marketable securities 3,696 54 - - - 3,750 Non-current assets: Investment in associate 1,389 - (208 ) - 66 (a) 1,247 ($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 ) (b) 39 (a) 1,389 (a) In 2023, the Company received 151,855 common shares of Paramount for payment of interest on the secured convertible note receivable accrued between July 1, 2022 and December 27, 2023 when the note was repaid. In 2022, the Company received 55,322 common shares of Paramount for payment of interest on the secured convertible note receivable accrued between July 1, 2021 and June 30, 2022. (b) 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 in the consolidated statements of operations and comprehensive income (loss). The Company holds a 4.7% (December 31, 2022 – 5.6%) interest in Paramount which is classified as investment in associate and accounted for 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 2023, the Company recorded its proportionate share of Paramount’s net loss of $0.2 million (2022 – $0.2 million) within equity loss of associate on the consolidated statements of operations and comprehensive income (loss). As at December 31 2023, the carrying value of the Company’s investment in Paramount was $1.2 million (December 31, 2022 - $1.4 million). |
Long-Term Receivables and Prepa
Long-Term Receivables and Prepaid Expenses | 12 Months Ended |
Dec. 31, 2023 | |
Long-Term Receivables and Prepaid Expenses [Abstract] | |
Long-Term Receivables and Prepaid Expenses | 8. Long-term receivables and prepaid expenses ($000s) December 31, December 31, BC Hydro 1 92,720 38,500 Canadian Exploration Expenses 2 9,361 9,337 British Columbia Mineral Exploration Tax Credit 3 3,866 3,866 105,947 51,703 1) During the first quarter in 2023, the Company paid $43.6 million (as at December 31, 2022, $38.5 million) to British Columbia Hydro and Power Authority (“BC Hydro”) as advance payment made pursuant to the Company signing a Facilities Agreement with BC Hydro covering the design and construction of facilities to supply hydro-sourced electricity to the KSM project. Prepayments to complete the design and construction amounted to $92.7 million inclusive of $10.6 million which was accrued as at December 31, 2023, and paid subsequent to December 31, 2023. 2) 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 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 and that have been reassessed by depositing the amount of their reassessments, including interest charges, into the accounts of the reassessed investors with the Receiver General in return for such investors agreement to object to their respective reassessments and to repay the Company any refund of the amount deposited on their behalf upon resolution of the Company’s appeal. During 2021 and 2022, the Company deposited $9.3 million into the accounts of certain investors with the Receiver General. The deposits made have been recorded as long-term receivables on the statement of financial position as at December 31, 2023. The potential tax indemnification to the investors is estimated to be $10.8 million, plus $3.3 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. 3) 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 of 2023, the Company completed discovery process with the Department of Justice and will continue to move the appeal process forward, including settling an agreed statement of facts. The Company will defend its case in courts in the third quarter of 2024. 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, 2023, 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, 2023 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, 2023 | |
Mineral Interests, Property and Equipment [Abstract] | |
Mineral Interests, Property and Equipment | 9. Mineral Interests, Property and Equipment ($000s) Mineral interests Construction in progress Property & equipment Right-of-use assets Total Cost As at January 1, 2022 632,005 27,061 3,080 407 662,553 Additions 55,069 158,728 4,736 2,030 220,563 Transfers adjusted 2 - (64,588 ) 64,588 - - As at December 31, 2022 adjusted 2 687,074 121,201 72,404 2,437 883,116 Additions 69,732 178,764 1,187 781 250,464 Transfers - (101,899 ) 101,899 - - As at December 31, 2023 756,806 198,066 175,490 3,218 1,133,580 Accumulated Depreciation As at January 1, 2022 - - 117 157 274 Depreciation expense - - 953 392 1,345 As at December 31, 2022 - - 1,070 549 1,619 Depreciation expense 1 - - 2,517 980 3,497 As at December 31, 2023 - - 3,587 1,529 5,116 Net Book Value As at December 31, 2022 687,074 121,201 71,334 1,888 881,497 As at December 31, 2023 756,806 198,066 171,903 1,689 1,128,464 1) Depreciation expense related to camps, equipment, and right-of-use assets associated with the KSM construction is capitalized to construction in progress. 2) Additions in the prior year financial statements were net of $38.4 transfers from construction in progress to property and equipment additions. Additionally, during 2023, $26.1 million of costs were determined to have been ready for use in 2022 and were reclassified from construction in progress to property and equipment to correct for this. Mineral interests, property and equipment additions by project are as follows. Year ended December 31, 2023 ($000s) January 1, Mineral interests Construction in progress Property & equipment Right-of-use assets Total Additions December 31, Additions KSM additions 1 707,190 40,490 178,764 1,187 781 221,222 928,412 KSM transfers - (101,899 ) 101,899 - - - Courageous Lake 77,999 3,520 - - - 3,520 81,519 Iskut 49,904 14,174 - - - 14,174 64,078 Snowstorm 34,562 4,897 - - - 4,897 39,459 3 Aces 12,079 6,651 - - - 6,651 18,730 Grassy Mountain 771 - - - - - 771 Corporate 611 - - - - - 611 Total 883,116 69,732 76,865 103,086 781 250,464 1,133,580 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 additions 1 502,015 39,985 158,728 4,736 1,726 205,175 707,190 KSM transfers adjusted 2 - - (64,588 ) 64,588 - - - 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 Total adjusted 2 662,553 55,069 94,140 69,324 2,030 220,563 883,116 1) In 2023, Construction in progress additions at KSM included $19.4 million of capitalized borrowing costs (2022 - $14.7 million). 2) Additions in the prior year financial statements were net of $38.4 transfers from construction in progress to property and equipment additions. Additionally, during 2023, $26.1 million of costs were determined to have been ready for use in 2022 and were reclassified from construction in progress to property and equipment to correct for this. 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 C$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 construction in progress consisted of $156.9 million (2022 - $104.6 million) of KSM assets under construction costs, $19.4 million (2022 - $14.7) of capitalized borrowing costs related to the secured note liabilities interest expense, and $2.5 million (2022 - $0.9 million) of capitalized depreciation expense. In 2023, $128.0 million was transferred from construction in progress to property and equipment (2022 - $38.4 million). 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. 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. 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. 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, 2023 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Accounts payable and accrued liabilities | 10. Accounts payable and accrued liabilities ($000s) December 31, December 31, Trade payables 27,302 15,686 Non-trade payables and accrued expenses 5,432 27,270 32,734 42,956 |
Provision for Reclamation Liabi
Provision for Reclamation Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Provision for Reclamation Liabilities [Abstract] | |
Provision for reclamation liabilities | 11. Provision for reclamation liabilities ($000s) December 31, December 31, Beginning of the period 10,846 8,442 Disbursements (3,664 ) (4,519 ) Environmental rehabilitation expense - 6,851 Accretion 253 72 End of the period 7,435 10,846 Provision for reclamation liabilities – current 759 4,343 Provision for reclamation liabilities – long-term 6,676 6,503 7,435 10,846 The estimate of the provision for reclamation obligations, as at December 31, 2023, was calculated using the estimated discounted cash flows of future reclamation costs of $7.4 million (December 31, 2022 - $10.8 million) and the expected timing of cash flow payments required to settle the obligations between 2024 and 2026. As at December 31, 2023, the undiscounted future cash outflows are estimated at $8.1 million (December 31, 2022 - $11.5 million) primarily over the next three years. The nominal discount rate used to calculate the present value of the reclamation obligations was 3.9% at December 31, 2023 (December 31, 2022 - 4.07%). For the year ended December 31, 2023, reclamation disbursements amounted to $3.7 million (2022 - $4.5 million). 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 2023, the Company placed $0.7 million on deposit as security for the reclamation obligations at KSM and 3 Aces. In 2022, the Company placed $5.4 million on deposit as security for the reclamation obligations at KSM. As at December 31, 2023, the Company has placed a total of $21.4 million (December 31, 2022 - $20.6 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 deposits. As at December 31, 2023, the Company had $10.0 million (December 31, 2022, $7.9 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 Liabilities
Secured Note Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Secured Note Liabilities [Abstract] | |
Secured Note liabilities | 12. Secured Note liabilities i. 2022 Secured Note On February 25, 2022, the Company, through its wholly-owned subsidiary, KSM Mining ULC (“KSMCo”) signed a definitive agreement to sell a secured note (“2022 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 2022 Secured Note include: ● When the 2022 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 on March 24, 2032, the 10-year anniversary, or if the Environmental Assessment Certificate (“EAC”) expires and the Investors do not exercise their right to put the 2022 Secured Note to the Company, on March 24, 2035, the 13-year anniversary of the issue date of the 2022 Secured Note. ● Prior to its maturity, the 2022 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 March 24, 2027, the Investors can put the 2022 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 2022 Secured Note is outstanding, the Investors can put the 2022 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 March 24, 2032, the Silver Royalty payable to the Investors will increase to a 75% gross silver royalty (if the EAC expires during the term of the 2022 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 2022 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. To satisfy the interest payment on the 2022 Secured Note, during 2023, the Company issued 1,285,178 common shares, in respect of the interest incurred during year ended December 31, 2023 (2022 - 977,745 common shares). 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 2022 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 2022 Secured Note on March 24, 2022, the loan commitment was settled with no gain or loss recognized. The 2022 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, silver prices forecast from five year quoted forward price, and the discount rates. During the year ended December 31, 2023, the fair value of the 2022 Secured Note increased, and the Company recorded a $30.8 million loss (year ended December 31, 2022 - $18.7 million gain) on the remeasurement. The following inputs and assumptions were used in the determination of fair value: Inputs and assumptions December 31, December 31, Forecast silver production in thousands of ounces 166,144 166,144 Five year quoted future silver price US$ US$29.38 Risk-free rate 4.0% 3.4% Credit spread 4.0% 5.3% Share price volatility 60% 60% Silver royalty discount factor 9.2% 8.6% The carrying amount for the 2022 Secured Note is as follows: ($000s) December 31, December 31, Fair value beginning of the period (or on issuance) 263,541 282,263 Change in fair value (gain) loss through profit and loss 3,096 (36,967 ) Change in fair value (gain) loss through other comprehensive income (loss) 34,830 (2,912 ) Foreign currency translation (gain) loss (7,104 ) 21,157 Total change in fair value 30,822 (18,722 ) Fair value end of the period 294,363 263,541 Sensitivity Analysis: For the fair value of the 2022 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 Key observable inputs The estimated fair value would increase (decrease) if: ● Silver price forward curve ● Future silver prices were 10% higher $ 16.7 ● Future silver prices were 10% lower $ (16.9 ) ● Discount rates ● Discount rates were 1% higher $ (25.6 ) ● Discount rates were 1% lower $ 30.0 Key unobservable inputs ● Forecasted silver production ● Silver production indicated silver ounces were 10% higher $ 16.7 ● Silver production indicated silver ounces were 10% lower $ (16.9 ) ii. 2023 Secured Note On May 11, 2023, the Company announced that it, through its wholly-owned subsidiary, KSM Mining ULC (“KSMCo”), had agreed to the principal terms of a royalty agreement under which Sprott Resource Streaming and Royalty Corp. (“Sprott”) would pay KSMCo US$150 million and KSMCo would grant Sprott up to 1.2% net smelter royalty (“NSR”) on the KSM project. Thereafter, the Company and Sprott agreed to restructure the proposed transaction as the sale of a secured note and, on June 28, 2023, the Company and KSMCo, signed a definitive agreement to sell a secured note (“2023 Secured Note”) that is to be exchanged at maturity for a net smelter returns royalty (the “NSR”) on its 100% owned KSM Project (“KSM”) to Sprott for US$150 million. The transaction closed on June 29, 2023. The key terms of the 2023 Secured Note include: ● When the 2023 Secured Note matures, Sprott will use all of the principal amount repaid on maturity to purchase a 1% NSR, subject to adjustment of the amount as described below. Maturity occurs upon the first to occur of: a) Commercial production being achieved at KSM; and b) Either on March 24, 2032 or, if the Environmental Assessment Certificate (“EAC”) expires and the Investors do not exercise their right to put the 2023 Secured Note to the Company, on March 24, 2035. ● Prior to its maturity, the 2023 Secured Note bears interest at 6.5% per annum, payable quarterly in arrears. However, payment of quarterly interest due on or before June 29, 2025 (the “Deferred Interest”) will be deferred and the Deferred Interest plus interest accrued on it (the “Interest Deferral Amount”) is payable in a lump sum on or before December 29, 2025. ● KSMCo can pay the Interest Deferral Amount (US$21.5M) in cash or Seabridge common shares or KSMCo can elect to increase the size of the NSR to be sold to Sprott on the Maturity Date from a 1% NSR to a 1.2% NSR (the “Royalty Increase Election”). ● The Company can elect to satisfy quarterly interest payments, including the Deferral Amount due, by paying in cash or Seabridge common shares. The requirement to make quarterly interest payments expires on the maturity date. ● No amount payable shall be paid in common shares if, after the payment, Sprott would own more than 9.9% of the Company’s outstanding shares. ● If commercial production is not achieved at the KSM Project prior to March 24, 2032, the size of the NSR to be sold to Sprott on the Maturity Date will increase to 1.25% if KSMCo paid the Interest Deferral Amount in cash or shares, or to 1.5% if KSMCo made the Royalty Increase Election (the applicable increase being the “Production Delay Increase”). ● The Company has the option to purchase the NSR amount down (after the NSR is sold to Sprott) to a 0.5% NSR (or to 0.625% if the Production Delay Increase occurred) on or before three years after commercial production has been achieved, for an amount that provides Sprott a minimum guaranteed annualized return. ● If project financing to develop, construct and place KSM into commercial production is not in place by March 24, 2027, Sprott can put the 2023 Secured Note back to the Company for: a) if the Company is obligated to sell Sprott a 1% NSR on the Maturity Date at the time, US$155 million plus accrued and unpaid interest, or b) if the Company is obligated to sell Sprott a 1.2% or 1.5% NSR on the Maturity Date at the time, US$180 million plus accrued and unpaid interest. This Sprott put right expires once such project financing is in place. If Sprott exercises this put right, Sprott’s right to purchase the NSR terminates. ● If KSM’s EAC expires at anytime while the 2023 Secured Note is outstanding, Sprott can put the 2023 Secured Note back to the Company at any time over the following nine months for: a) if the Company is obligated to sell Sprott a 1% NSR on the Maturity Date at the time, US$165 million plus accrued and unpaid interest, or b) if the Company is obligated to sell Sprott a 1.2% NSR on the Maturity Date at the time, US$186.5 million plus accrued and unpaid interest. If Sprott exercises this put right, Sprott’s right to purchase the NSR terminates. ● The Company can elect to satisfy payments due on Sprott’s exercise of either of its put rights in cash or by delivering common shares. ● No amount payable shall be paid in common shares if, after the payment, Sprott would own more than 9.9% of the Company’s outstanding shares. ● The Company’s obligations under the 2023 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 2023 Secured Note was recognized at its estimated fair value at initial recognition of $198.8 million (US$150 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, metal prices forecast and discount rates. As at December 31, 2023 and since inception, the fair value of the 2023 Secured Note increased, and the Company recorded a $80.7 million loss on the remeasurement. The following inputs and assumptions were used in the determination of fair value: Inputs and assumptions December 31, June 29, Forecast NSR: Gold in thousands of ounces 10,500 10,500 Silver in thousands of ounces 29,876 29,876 Copper in millions of pounds 19,322 19,322 Molybdenum in millions of pounds 152 152 Five year quoted future metal price Gold per ounce US$2,553.60 US$2,346.82 Silver per ounce US$28.62 US$27.48 Copper per pound US$4.08 US$3.65 Molybdenum per pound US$24.89 US$29.26 Risk-free rate 4.0% 3.9% Credit spread 4.0% 5.4% Share price volatility 60% 60% NSR royalty discount factor 9.2% 9.1% The carrying amount for the 2023 Secured Note is as follows: ($000s) December 31, Fair value at inception 198,825 Change in fair value (gain) loss through profit and loss 33,182 Change in fair value (gain) loss through other comprehensive income (loss) 49,563 Foreign currency translation (gain) loss (2,045 ) Total change in fair value 80,700 Fair value end of the period 279,525 Sensitivity Analysis: For the fair value of the 2023 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 (millions) Key observable inputs The estimated fair value would increase (decrease) if: ● Metals price forward curve ● Future metal prices were 10% higher $ 20.7 ● Future metal prices were 10% lower $ (20.9 ) ● Discount rates ● Discount rates were 1% higher $ (34.4 ) ● Discount rates were 1% lower $ 42.1 Key unobservable inputs ● Forecasted metal production ● Metal production indicated volumes were 10% higher $ 19.7 ● Metal production indicated volumes were 10% lower $ (20.1 ) |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2023 | |
Shareholders’ Equity [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, 2023 or December 31, 2022. 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 pre-operating 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 2023. 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. During the first quarter of 2023, a US$100 million prospectus supplement was filed and the program was renewed. In the first quarter of 2023, 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. In 2023, the Company issued 2,516,839 shares, at an average selling price of $17.36 per share, for net proceeds of $42.8 million under the Company’s At-The-Market offering. As at December 31, 2023, US$67.6 million is available under the ATM. Subsequent to the quarter end, the Company issued 682,686 shares, at an average selling price of $16.50 per share, for net proceeds of $11.0 In December 2023, the Company issued a total of 875,150 flow-through common shares at an average $22.34 per common share for aggregate gross proceeds of $19.6 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, 2023. At the time of issuance of the flow-through shares, $5.5 million premium was recognized as a liability on the consolidated statements of financial position. 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. During the year ended December 31, 2023, the Company incurred $15.0 million of qualifying exploration expenditures and the $4.2 million premium was recognized through other income on the consolidated statements of operations and comprehensive income (loss). b) Stock options and restricted share units The Company provides compensation to directors and employees in the form of stock options and RSUs. Pursuant to the Share Option Plan, the Board of Directors has the authority to grant options, and to establish the exercise price and life of the option at the time each option is granted, at a price not less than the closing price of the common shares on the Toronto Stock Exchange on the date of the grant of such option and for a period not exceeding five years. All exercised options are settled in equity. Pursuant to the Company’s RSU Plan, the Board of Directors has the authority to grant RSUs, and to establish terms of the RSUs including the vesting criteria and the life of the RSUs. Stock option and RSU transactions were as follows: Options RSUs Total Number of Options Weighted Average Exercise Price ($) Amortized Value of options ($000s) Number of RSUs Amortized Value of RSUs ($000s) Stock-based Compensation ($000s) Outstanding January 1, 2023 477,500 15.85 4,117 345,266 538 4,655 Granted - - - 399,300 144 144 Exercised option or vested RSU (50,000 ) 15.46 (460 ) (41,840 ) (823 ) (1,283 ) Options surrendered for cash (273,500 ) 15.46 (2,355 ) - - (2,355 ) Expired (104,000 ) 16.17 (886 ) (5,000 ) (33 ) (919 ) Amortized value of stock-based compensation - - - - 3,158 3,158 Outstanding at December 31, 2023 50,000 17.72 416 697,726 2,984 3,400 Exercisable at December 31, 2023 50,000 Options RSUs Total Number of Options Weighted Average Exercise Price ($) Amortized Value of options ($000s) Number of RSUs Amortized Value of RSUs ($000s) Stock-based Compensation ($000s) Outstanding at January 1, 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 In December 2023, 273,500 options, with exercise price of $15.46 per option, were surrendered for cash at the weighted average rate of $0.18 cash payment per option. As at December 31, 2023, there were 50,000 outstanding share options, with an exercise prices of $17.72, expiring in June 2024. In December 2023, 379,300 RSUs were granted to the Board members, members of senior management, and to other employees of the Company. Of those, 277,500 was granted to senior management, with vesting dependent on certain corporate objectives including the completion of a bankable feasibility study at KSM, and the Company’s share price outperforming certain market benchmarks. The fair value of RSUs granted with vesting dependent on market conditions was valued using a Monte-Carlo simulation. The fair value of total RSU grants, of $4.6 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 one year to three years from the date of the grant and is dependent on the corporate objectives being met. In December 2022, 310,266 RSUs were granted to the Board members, members of senior management, and to other employees of the Company. Of those, 232,266 was granted to senior management, with vesting dependent on certain corporate objectives including the Company submitting its formal application to the regulator for the KSM Project to be designated as “substantially started”, notification from the regulator that the KSM Project has been designated as “substantially started”, and announcement of KSM joint venture agreement, or other transformative transaction affecting the ownership and control of KSM. The fair value of the total RSU 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 nine months to three years from the date of the grant and is dependent on the corporate objectives being met. Subsequent to year end in January 2024, upon the Company submitting its formal application to the regulator for the KSM Project to be designated as “substantially started”, 58,067 RSUs vested and were exchanged for common shares of the Company. In December 2021, 123,800 RSUs were granted to the Board members, members of senior management, and 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. 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, 2023 was $29.3 million (2022 - $7.4 million net loss). Loss 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 loss per common share for the following periods: ($000s) December 31, December 31, Weighted average number of common shares outstanding 83,001,989 80,058,861 Weighted average shares dilution adjustments: 1 - - RSUs - - Diluted weighted average shares outstanding 83,001,989 80,058,861 1) Excluded in the diluted weighted average number of common shares outstanding as their exercise or settlement would be anti-dilutive in the earnings per share calculation. |
Cash Flow Items
Cash Flow Items | 12 Months Ended |
Dec. 31, 2023 | |
Cash Flow Items [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 7 - 873 Equity loss of associate 7 208 207 Loss (gain) on convertible notes receivable - 103 (25 ) Interest income earned on convertible notes receivable - (66 ) (39 ) Depreciation 9 132 84 Finance costs, net - 254 72 Effects of exchange rate fluctuation on cash and cash equivalents - (269 ) (3,216 ) 362 (2,044 ) |
Fair Value of Financial Assets
Fair Value of Financial Assets and Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value of Financial Assets and Liabilities [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, 2023 ($000s) Carrying Amount Level 1 Level 2 Level 3 Total Fair Value Assets Cash and cash equivalents 82,438 82,438 - - 82,438 Amounts receivable 5,019 5,019 - - 5,019 Investment in marketable securities 3,749 3,749 - - 3,749 Long-term receivables 13,227 13,227 - - 13,227 104,433 104,433 - - 104,433 Liabilities Accounts payable and accrued liabilities 32,733 32,733 - - 32,733 Secured note liabilities 573,888 - - 573,888 573,888 606,621 32,733 - 573,888 606,621 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 13,203 13,203 - - 13,203 151,630 150,999 - 631 151,630 Liabilities Accounts payable and accrued liabilities 42,956 42,956 - - 42,956 Secured note liabilities 263,541 - - 263,541 263,541 306,497 42,956 - 263,541 306,497 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 ability to fund its operations and capital expenditures and other obligations as they become due is dependent upon market conditions. The Company has in place an At-the-Market offering that allows for the issuance of up to US$100 million of its common shares and has been an effective source of funding. In 2023, the Company raised $42.8 million, and as at December 31, 2023, has room for an additional US$67.6 million under its At-the-Market offering. The Company intends to fully utilize the At-the-Market offering currently in place and believes that with this it will have sufficient liquidity to continue its operations and meet its obligations for the next twelve months. 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, including proceeding with additional payments pursuant to the Facilities Agreement with BC Hydro (refer to Note 19). When 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 or from the sale of non-core assets. 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, 2023, the Company had cash and cash equivalents of $82.4 million (December 31, 2022 - cash and cash equivalents of $46.2 million and short-term deposits of $81.7 million) for settlement of current financial liabilities of $33.5 million (December 31, 2022 - $47.3 million). Except for the secured note liabilities 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 table details 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 2022 Secured Note including interest 19,368 38,736 38,736 197,523 294,363 2023 Secured Note including interest - 47,840 25,824 205,860 279,524 Flow-through share expenditures 19,554 - - - 19,554 Lease obligation 905 337 150 249 1,641 39,827 86,913 64,710 403,632 595,082 As the Company does not generate cash inflows from operations, and 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 12 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 liabilities (Note 12) bear 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, 2023, the Company had cash and cash equivalents, investment in associate, convertible notes receivable, loan receivable, reclamation deposits, accounts payable, accrued liabilities and secured notes 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 $3.7 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, 2023 | |
Corporate and Administrative Expenses [Abstract] | |
Corporate and administrative expenses | 16. Corporate and administrative expenses ($000s) 2023 2022 Employee compensation 7,165 7,479 Stock-based compensation 3,318 3,138 Professional fees 3,011 2,591 Other general and administrative 3,947 2,882 17,441 16,090 |
Related Party Disclosures
Related Party Disclosures | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Disclosures [Abstract] | |
Related party disclosures | 17. Related party disclosures Compensation to key management personnel of the Company: ($000s) 2023 2022 Compensation of directors: Directors’ fees 734 560 Stock-based compensation 435 675 1,169 1,235 Compensation of key management personnel: Salaries and benefits and consulting fees 7,632 7,892 Stock-based compensation 2,511 2,026 10,143 9,918 11,312 11,153 During year ended December 31, 2023 and 2022, 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, 2023 | |
Income Taxes [Abstract] | |
Income taxes | 18. Income taxes ($000s) 2023 2022 Deferred tax expense (recovery) (8,695 ) 8,268 (8,695 ) 8,268 Tax expense (recovery) recognized in other comprehensive income or directly in equity ($000s) 2023 2022 Financing costs - recognized in statement of equity (459 ) (330 ) Revaluation of the secured note liabilities – recognized in OCI (22,780 ) 831 (23,239 ) 501 In 2023, the Company recognized income tax recovery of $8.7 million, primarily due to the deferred tax asset arising from the loss recognized on remeasurement of the fair value of the secured note liabilities, and the losses in the period. The income tax recovery was partially offset by income tax expense arising from the renouncement of expenditures related to the December 2022 flow-through shares issued which are capitalized for accounting purposes. The income tax impact of the revaluation of the secured note liabilities that was recorded through other comprehensive income (loss) during 2023, of $22.8 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 and Provincial statutory income tax rates of 26.75% (2022 - 26.68%). ($000s) 2023 2022 Earnings (loss) before income taxes (37,961 ) 874 26.75 % 26.68 % Income tax calculated using statutory rates (10,153 ) 233 Non-deductible/(non-taxable) items (1,512 ) 2,280 Difference in foreign tax rates (25 ) 103 Change in deferred tax rates (134 ) (116 ) Movement in tax benefits not recognized (985 ) 2,996 Impact of true-up of prior year balances 180 124 Renouncement of flow-through expenditures 4,018 2,525 Other (84 ) 123 Income tax (recovery) expense (8,695 ) 8,268 (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 1,253 565 Provision for reclamation liabilities 1,406 1,235 Financing costs 2,383 2,487 Non-capital loss carryforwards 46,571 38,255 Secured note liabilities 21,814 (10,766 ) Deferred income tax liabilities: Mineral interests (73,428 ) (63,710 ) Net deferred income tax liabilities - (31,934 ) (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 130 137 Loss carryforwards 1,712 834 Investment tax credits 1,481 1,481 Foreign tax credits 268 268 Mineral properties 351 437 Provision for reclamation liabilities - 1,091 Other 1,576 - Deferred tax has not been recognized on the deductible temporary difference of $1.9 million (2022 - $2.1 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, 2023, the Company had the following income tax attributes to carry forward. ($000s) Expiry date Canadian non-capital losses 178,403 2043 Canadian capital losses 2,574 Indefinite Canadian tax basis of mineral interest 462,381 Indefinite US non-capital losses 528 2043 US tax basis of mineral interest 27,707 Indefinite |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies [Abstract] | |
Commitments and contingencies | 19. Commitments and contingencies Payments due by years ($000s) Total 2024 2025-26 2027-28 2029-30 2022 Secured Note – interest 135,576 19,368 38,736 38,736 38,736 2023 Secured Note – interest 99,488 - 47,840 25,824 25,824 Capital expenditure obligations 18,434 18,434 - - - Flow-through share expenditures 19,554 19,554 - - - Mineral interests 7,967 758 1,527 2,403 3,279 Lease obligation 1,542 905 337 150 150 282,561 59,019 88,440 67,113 67,989 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 $32.9 million of which the Company has paid $24.9 million to BC Hydro and the remaining balance was paid subsequent to the year end. In addition, the Facilities Agreement requires $59.8 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 $57.1 million to BC Hydro and the remaining balance was paid subsequent to the year end. The $59.8 million system reinforcement security will be forgiven annually, typically over a period of less than 8 years, based on project power consumption. Prepayments to complete the design and construction amounted to $92.7 million inclusive of $10.6 million, accrued as at December 31, 2023, paid subsequent to December 31, 2023. On March 21, 2024, the Company signed an amendment to the Facilities Agreement with BC Hydro for additional payments that are scheduled for $14.0 million in July 2024 and $40.0 million in December 2024 (refer to Note 15). Prior to its maturity, the 2022 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. Prior to its maturity, the 2023 Secured Note bears interest at 6.5% or US$9.8 million per annum, payable quarterly in arrears. Payment of quarterly interest due from the closing date to the second anniversary is deferred and US$21.5 million must be paid on or before 30 months after the closing date. Ongoing quarterly interest can be satisfied by way of cash, common shares or increasing the NSR percentage from 1 to 1.2%. Refer to Note 12 for details on the secured note liabilities. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
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 “L”, 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. |
Mineral interests, property and equipment | C. 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 the Company’s KSM Project (“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 assets that require a significant amount of time to get ready for their intended use, including projects that are in the development or construction stages. Capitalization of borrowing costs ceases when such assets are ready for their intended use. |
Depreciation | D. Depreciation Effective from the point an asset is available for its intended use, the assets 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 | E. 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 of non-financial assets | F. Impairment of 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 | G. 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 | H. 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 (“RSUs”) | I. Stock-based compensation options and restricted share units (“RSUs”) 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 models share their limitations. |
Flow-through shares | J. 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 | K. 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 RSUs. 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 | L. 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 liabilities The Company has elected to account for its secured note liabilities and all embedded derivatives as a single financial liability. The change in fair value of the secured note liabilities 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 | M. Accounting pronouncements New accounting standards and interpretations issued and effective: IAS 1 - Presentation of financial statements: disclosure of material accounting policy information On January 1, 2023, the Company adopted amendments to IAS 1 that requires companies to disclose material accounting policies instead of significant accounting policies. The adoption of these amendments resulted in certain changes to the Company’s accounting policy disclosures. The Company’s material accounting policies are disclosed in Note 3 – Summary of material accounting policies herein. IAS 8 - Accounting Policies, Changes in Accounting Estimates and Errors In February 2021, the IASB issued Definition of Accounting Estimates, which made amendments to IAS 8. The amendments replaced the definition of a change in accounting estimates with a definition of accounting estimates. Under the new definition, accounting estimates are “monetary amounts in financial statements that are subject to measurement uncertainty”. Accounting estimates are developed if accounting policies require items in financial statements to be measured in a way that involves measurement uncertainty. The amendments clarify that a change in an accounting estimate that results from new information or new developments is not the correction of an error. In addition, the effects of a change in an input or a measurement technique used to develop an accounting estimate are changes in accounting estimates if they do not result from the correction of prior period errors. A change in an accounting estimate may affect only the current period’s Consolidated Statements of Operations and Comprehensive Income, or the Consolidated Statements of Operations and Comprehensive Income of both the current period and future periods. The effect of the change relating to the current period is recognized as income or expense in the current period. The effect, if any, on future periods is recognized as income or expense in those future periods. The amendments apply for annual periods beginning on or after January 1, 2023 and early adoption was permitted. The Company adopted the amendments effective January 1, 2023. The application of these amendments did not have a material impact on the Company’s consolidated financial statements. IAS 12 - Deferred Tax In May 2021, the IASB issued Deferred Tax related to Assets and Liabilities Arising from a Single Transaction which amended IAS 12, Income Taxes (“IAS 12”). Prior to the amendments, IAS 12 contained a recognition exemption whereby deferred income tax assets and liabilities were not recognized for temporary differences arising on initial recognition of assets and liabilities, other than in business combinations, that affect neither accounting nor taxable income. The amendments narrowed the scope of the recognition exemption in IAS 12 so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences. The Company applied the amendments to IAS 12 to its consolidated financial statements for the annual reporting period beginning on January 1, 2023. The application of these amendments did not have an impact on the Company’s consolidated financial statements. IAS 12 - International Tax Reform - Pillar Two Model Rules On May 23, 2023, the IASB issued amendments to IAS 12 which introduce a temporary exception from accounting for deferred taxes arising from the implementation of the Organization for Economic Co-operation and Development (“OECD”) Pillar Two model rules. The amendments provide relief from recognizing deferred taxes related to the OECD Pillar two income taxes as well as any related disclosure. The Company has applied the exception immediately upon issuance of the amendment and retrospectively in accordance with IAS 8 for the 2023 fiscal year. Accounting pronouncements issued but not yet effective: On January 23, 2020 and October 31, 2022, the IASB issued amendments to IAS 1 to clarify that the classification of liabilities as current or non-current should be based on rights that exist at the end of the reporting period and that classification is unaffected by expectations about whether an entity will exercise its right to defer settlement of a liability. For liabilities with covenants, the amendments clarify that only covenants with which an entity is required to comply on or before the reporting date affect the classification as current or non-current. The Company will adopt the amendments to IAS 1 effective January 1, 2024. These amendments are not expected to have a significant impact on the Company’s statement of financial position on the date of adoption. On September 22, 2022, the IASB issued amendments to IFRS 16 to add subsequent measurement requirements for sale and leaseback transactions, particularly those with variable lease payments. The amendments require the seller-lessee to subsequently measure lease liabilities in a way such that it does not recognize any gain or loss relating to the right of use it retains. The amendments are effective on January 1, 2024 and are not expected to have a significant impact on the Company’s financial statements. On May 25, 2023, the IASB issued amendments to IAS 7 requiring entities to provide qualitative and quantitative information about their supplier finance arrangements. In connection with the amendments to IAS 7, the IASB also issued amendments to IFRS 7 requiring entities to disclose whether they have accessed, or have access to, supplier finance arrangements that would provide the entity with extended payment terms or the suppliers with early payment terms. These amendments are effective on January 1, 2024, and are not expected to have a significant impact on the Company’s financial statements. On August 15, 2023, the IASB issued amendments to IAS 21 to specify how to assess whether a currency is exchangeable and how to determine the exchange rate when it is not exchangeable. The amendments specify that a currency is exchangeable when it can be exchanged through market or exchange mechanisms that create enforceable rights and obligations without undue delay at the measurement date and the specified purpose. For non-exchangeable currencies, an entity is required to estimate the spot exchange rate as the rate that would have applied to an orderly exchange transaction between market participants at the measurement date under prevailing economic conditions. The amendments are effective on January 1, 2025 and are not expected to have a significant impact on the Company’s financial statements. |
Cash and Cash Equivalents and_2
Cash and Cash Equivalents and Short-Term Deposits (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Cash and Cash Equivalents and Short-Term Deposits [Abstract] | |
Schedule of Cash and Cash Equivalents and Short-Term Deposits | ($000s) December 31, December 31, Cash and cash equivalents 82,438 46,150 Short-term deposits - 81,690 82,438 127,840 |
Amounts Receivable and Prepai_2
Amounts Receivable and Prepaid Expenses (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Amounts Receivable and Prepaid Expenses [Abstract] | |
Schedule of Prepaid Expenses | ($000s) December 31, December 31, HST 4,493 4,247 Prepaid expenses and other receivables 3,270 3,973 7,763 8,220 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments [Abstract] | |
Schedule of Investments | ($000s) January 1, Fair value Loss of Impairment Additions December 31, Current assets: Investments in marketable securities 3,696 54 - - - 3,750 Non-current assets: Investment in associate 1,389 - (208 ) - 66 (a) 1,247 ($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 ) (b) 39 (a) 1,389 (a) In 2023, the Company received 151,855 common shares of Paramount for payment of interest on the secured convertible note receivable accrued between July 1, 2022 and December 27, 2023 when the note was repaid. In 2022, the Company received 55,322 common shares of Paramount for payment of interest on the secured convertible note receivable accrued between July 1, 2021 and June 30, 2022. (b) 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 in the consolidated statements of operations and comprehensive income (loss). |
Long-Term Receivables and Pre_2
Long-Term Receivables and Prepaid Expenses (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Long-Term Receivables Explanatory [Abstract] | |
Schedule of Long-Term Receivables and Prepaid Expenses | ($000s) December 31, December 31, BC Hydro 1 92,720 38,500 Canadian Exploration Expenses 2 9,361 9,337 British Columbia Mineral Exploration Tax Credit 3 3,866 3,866 105,947 51,703 1) During the first quarter in 2023, the Company paid $43.6 million (as at December 31, 2022, $38.5 million) to British Columbia Hydro and Power Authority (“BC Hydro”) as advance payment made pursuant to the Company signing a Facilities Agreement with BC Hydro covering the design and construction of facilities to supply hydro-sourced electricity to the KSM project. Prepayments to complete the design and construction amounted to $92.7 million inclusive of $10.6 million which was accrued as at December 31, 2023, and paid subsequent to December 31, 2023. 2) 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 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 and that have been reassessed by depositing the amount of their reassessments, including interest charges, into the accounts of the reassessed investors with the Receiver General in return for such investors agreement to object to their respective reassessments and to repay the Company any refund of the amount deposited on their behalf upon resolution of the Company’s appeal. During 2021 and 2022, the Company deposited $9.3 million into the accounts of certain investors with the Receiver General. The deposits made have been recorded as long-term receivables on the statement of financial position as at December 31, 2023. The potential tax indemnification to the investors is estimated to be $10.8 million, plus $3.3 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. 3) 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 of 2023, the Company completed discovery process with the Department of Justice and will continue to move the appeal process forward, including settling an agreed statement of facts. The Company will defend its case in courts in the third quarter of 2024. 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, 2023, 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, 2023 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, 2023 | |
Mineral Interests, Property and Equipment Explanatory [Abstract] | |
Schedule of Mineral Interests, Property and Equipment | ($000s) Mineral interests Construction in progress Property & equipment Right-of-use assets Total Cost As at January 1, 2022 632,005 27,061 3,080 407 662,553 Additions 55,069 158,728 4,736 2,030 220,563 Transfers adjusted 2 - (64,588 ) 64,588 - - As at December 31, 2022 adjusted 2 687,074 121,201 72,404 2,437 883,116 Additions 69,732 178,764 1,187 781 250,464 Transfers - (101,899 ) 101,899 - - As at December 31, 2023 756,806 198,066 175,490 3,218 1,133,580 Accumulated Depreciation As at January 1, 2022 - - 117 157 274 Depreciation expense - - 953 392 1,345 As at December 31, 2022 - - 1,070 549 1,619 Depreciation expense 1 - - 2,517 980 3,497 As at December 31, 2023 - - 3,587 1,529 5,116 Net Book Value As at December 31, 2022 687,074 121,201 71,334 1,888 881,497 As at December 31, 2023 756,806 198,066 171,903 1,689 1,128,464 1) Depreciation expense related to camps, equipment, and right-of-use assets associated with the KSM construction is capitalized to construction in progress. 2) Additions in the prior year financial statements were net of $38.4 transfers from construction in progress to property and equipment additions. Additionally, during 2023, $26.1 million of costs were determined to have been ready for use in 2022 and were reclassified from construction in progress to property and equipment to correct for this. |
Schedule of Mineral Interests, Property and Equipment | Mineral interests, property and equipment additions by project are as follows. Year ended December 31, 2023 ($000s) January 1, Mineral interests Construction in progress Property & equipment Right-of-use assets Total Additions December 31, Additions KSM additions 1 707,190 40,490 178,764 1,187 781 221,222 928,412 KSM transfers - (101,899 ) 101,899 - - - Courageous Lake 77,999 3,520 - - - 3,520 81,519 Iskut 49,904 14,174 - - - 14,174 64,078 Snowstorm 34,562 4,897 - - - 4,897 39,459 3 Aces 12,079 6,651 - - - 6,651 18,730 Grassy Mountain 771 - - - - - 771 Corporate 611 - - - - - 611 Total 883,116 69,732 76,865 103,086 781 250,464 1,133,580 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 additions 1 502,015 39,985 158,728 4,736 1,726 205,175 707,190 KSM transfers adjusted 2 - - (64,588 ) 64,588 - - - 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 Total adjusted 2 662,553 55,069 94,140 69,324 2,030 220,563 883,116 1) In 2023, Construction in progress additions at KSM included $19.4 million of capitalized borrowing costs (2022 - $14.7 million). 2) Additions in the prior year financial statements were net of $38.4 transfers from construction in progress to property and equipment additions. Additionally, during 2023, $26.1 million of costs were determined to have been ready for use in 2022 and were reclassified from construction in progress to property and equipment to correct for this. |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounts Payable and Accrued Liabilities Explanatory [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | ($000s) December 31, December 31, Trade payables 27,302 15,686 Non-trade payables and accrued expenses 5,432 27,270 32,734 42,956 |
Provision for Reclamation Lia_2
Provision for Reclamation Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Provision for Reclamation Liabilities [Abstract] | |
Schedule of Provision for Reclamation Liabilities | ($000s) December 31, December 31, Beginning of the period 10,846 8,442 Disbursements (3,664 ) (4,519 ) Environmental rehabilitation expense - 6,851 Accretion 253 72 End of the period 7,435 10,846 Provision for reclamation liabilities – current 759 4,343 Provision for reclamation liabilities – long-term 6,676 6,503 7,435 10,846 |
Secured Note Liabilities (Table
Secured Note Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Secured Note Liabilities [Abstract] | |
Schedule of Inputs and Assumptions | The following inputs and assumptions were used in the determination of fair value: Inputs and assumptions December 31, December 31, Forecast silver production in thousands of ounces 166,144 166,144 Five year quoted future silver price US$ US$29.38 Risk-free rate 4.0% 3.4% Credit spread 4.0% 5.3% Share price volatility 60% 60% Silver royalty discount factor 9.2% 8.6% Inputs and assumptions December 31, June 29, Forecast NSR: Gold in thousands of ounces 10,500 10,500 Silver in thousands of ounces 29,876 29,876 Copper in millions of pounds 19,322 19,322 Molybdenum in millions of pounds 152 152 Five year quoted future metal price Gold per ounce US$2,553.60 US$2,346.82 Silver per ounce US$28.62 US$27.48 Copper per pound US$4.08 US$3.65 Molybdenum per pound US$24.89 US$29.26 Risk-free rate 4.0% 3.9% Credit spread 4.0% 5.4% Share price volatility 60% 60% NSR royalty discount factor 9.2% 9.1% |
Schedule of Carrying Amount for the Secured Note | The carrying amount for the 2022 Secured Note is as follows: ($000s) December 31, December 31, Fair value beginning of the period (or on issuance) 263,541 282,263 Change in fair value (gain) loss through profit and loss 3,096 (36,967 ) Change in fair value (gain) loss through other comprehensive income (loss) 34,830 (2,912 ) Foreign currency translation (gain) loss (7,104 ) 21,157 Total change in fair value 30,822 (18,722 ) Fair value end of the period 294,363 263,541 ($000s) December 31, Fair value at inception 198,825 Change in fair value (gain) loss through profit and loss 33,182 Change in fair value (gain) loss through other comprehensive income (loss) 49,563 Foreign currency translation (gain) loss (2,045 ) Total change in fair value 80,700 Fair value end of the period 279,525 |
Schedule of Fair Value of the Secured Note | For the fair value of the 2022 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 Key observable inputs The estimated fair value would increase (decrease) if: ● Silver price forward curve ● Future silver prices were 10% higher $ 16.7 ● Future silver prices were 10% lower $ (16.9 ) ● Discount rates ● Discount rates were 1% higher $ (25.6 ) ● Discount rates were 1% lower $ 30.0 Key unobservable inputs ● Forecasted silver production ● Silver production indicated silver ounces were 10% higher $ 16.7 ● Silver production indicated silver ounces were 10% lower $ (16.9 ) Key Inputs Inter-relationship between significant inputs and fair value measurement Increase (millions) Key observable inputs The estimated fair value would increase (decrease) if: ● Metals price forward curve ● Future metal prices were 10% higher $ 20.7 ● Future metal prices were 10% lower $ (20.9 ) ● Discount rates ● Discount rates were 1% higher $ (34.4 ) ● Discount rates were 1% lower $ 42.1 Key unobservable inputs ● Forecasted metal production ● Metal production indicated volumes were 10% higher $ 19.7 ● Metal production indicated volumes were 10% lower $ (20.1 ) |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Shareholders’ Equity [Abstract] | |
Schedule of Stock Option and RSU Transactions | 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 ($000s) Outstanding January 1, 2023 477,500 15.85 4,117 345,266 538 4,655 Granted - - - 399,300 144 144 Exercised option or vested RSU (50,000 ) 15.46 (460 ) (41,840 ) (823 ) (1,283 ) Options surrendered for cash (273,500 ) 15.46 (2,355 ) - - (2,355 ) Expired (104,000 ) 16.17 (886 ) (5,000 ) (33 ) (919 ) Amortized value of stock-based compensation - - - - 3,158 3,158 Outstanding at December 31, 2023 50,000 17.72 416 697,726 2,984 3,400 Exercisable at December 31, 2023 50,000 Options RSUs Total Number of Options Weighted Average Exercise Price ($) Amortized Value of options ($000s) Number of RSUs Amortized Value of RSUs ($000s) Stock-based Compensation ($000s) Outstanding at January 1, 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 |
Schedule of Basic and Diluted Earnings Per Common Share | The following table details the weighted average number of outstanding common shares for the purpose of computing basic and diluted loss per common share for the following periods: ($000s) December 31, December 31, Weighted average number of common shares outstanding 83,001,989 80,058,861 Weighted average shares dilution adjustments: 1 - - RSUs - - Diluted weighted average shares outstanding 83,001,989 80,058,861 |
Cash Flow Items (Tables)
Cash Flow Items (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Cash Flow Items [Abstract] | |
Schedule of Adjustment for Other Non-Cash Items within Operating Activities | Adjustment for other non-cash items within operating activities: Year Ended ($000s) Notes December 31, December 31, Impairment of investment in associate 7 - 873 Equity loss of associate 7 208 207 Loss (gain) on convertible notes receivable - 103 (25 ) Interest income earned on convertible notes receivable - (66 ) (39 ) Depreciation 9 132 84 Finance costs, net - 254 72 Effects of exchange rate fluctuation on cash and cash equivalents - (269 ) (3,216 ) 362 (2,044 ) |
Fair Value of Financial Asset_2
Fair Value of Financial Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value of Financial Assets and Liabilities [Abstract] | |
Schedule of Fair Values of Financial Assets and Liabilities | The Company’s fair values of financial assets and liabilities were as follows: December 31, 2023 ($000s) Carrying Amount Level 1 Level 2 Level 3 Total Fair Value Assets Cash and cash equivalents 82,438 82,438 - - 82,438 Amounts receivable 5,019 5,019 - - 5,019 Investment in marketable securities 3,749 3,749 - - 3,749 Long-term receivables 13,227 13,227 - - 13,227 104,433 104,433 - - 104,433 Liabilities Accounts payable and accrued liabilities 32,733 32,733 - - 32,733 Secured note liabilities 573,888 - - 573,888 573,888 606,621 32,733 - 573,888 606,621 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 13,203 13,203 - - 13,203 151,630 150,999 - 631 151,630 Liabilities Accounts payable and accrued liabilities 42,956 42,956 - - 42,956 Secured note liabilities 263,541 - - 263,541 263,541 306,497 42,956 - 263,541 306,497 |
Schedule of Contractual Cash Flow Requirements for its Financial Liabilities on Repayment or Maturity Periods | The following table details the Company’s expected remaining 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 2022 Secured Note including interest 19,368 38,736 38,736 197,523 294,363 2023 Secured Note including interest - 47,840 25,824 205,860 279,524 Flow-through share expenditures 19,554 - - - 19,554 Lease obligation 905 337 150 249 1,641 39,827 86,913 64,710 403,632 595,082 |
Corporate and Administrative _2
Corporate and Administrative Expenses (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Corporate and Administrative Expenses Explanatory [Abstract] | |
Schedule of Corporate and Administrative Expenses | ($000s) 2023 2022 Employee compensation 7,165 7,479 Stock-based compensation 3,318 3,138 Professional fees 3,011 2,591 Other general and administrative 3,947 2,882 17,441 16,090 |
Related Party Disclosures (Tabl
Related Party Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Disclosures [Abstract] | |
Schedule of Compensation to Key Management Personnel | Compensation to key management personnel of the Company: ($000s) 2023 2022 Compensation of directors: Directors’ fees 734 560 Stock-based compensation 435 675 1,169 1,235 Compensation of key management personnel: Salaries and benefits and consulting fees 7,632 7,892 Stock-based compensation 2,511 2,026 10,143 9,918 11,312 11,153 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes [Abstract] | |
Schedule of Deferred Tax Recovery | ($000s) 2023 2022 Deferred tax expense (recovery) (8,695 ) 8,268 (8,695 ) 8,268 |
Schedule of Tax Expense Recognized in Other Comprehensive Income or Directly in Equity | Tax expense (recovery) recognized in other comprehensive income or directly in equity ($000s) 2023 2022 Financing costs - recognized in statement of equity (459 ) (330 ) Revaluation of the secured note liabilities – recognized in OCI (22,780 ) 831 (23,239 ) 501 |
Schedule of Reconciliation of the Effective Rate of Income Tax | (a) Rate Reconciliation ($000s) 2023 2022 Earnings (loss) before income taxes (37,961 ) 874 26.75 % 26.68 % Income tax calculated using statutory rates (10,153 ) 233 Non-deductible/(non-taxable) items (1,512 ) 2,280 Difference in foreign tax rates (25 ) 103 Change in deferred tax rates (134 ) (116 ) Movement in tax benefits not recognized (985 ) 2,996 Impact of true-up of prior year balances 180 124 Renouncement of flow-through expenditures 4,018 2,525 Other (84 ) 123 Income tax (recovery) expense (8,695 ) 8,268 |
Schedule of Deferred Income Tax Assets and Liabilities | 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 1,253 565 Provision for reclamation liabilities 1,406 1,235 Financing costs 2,383 2,487 Non-capital loss carryforwards 46,571 38,255 Secured note liabilities 21,814 (10,766 ) Deferred income tax liabilities: Mineral interests (73,428 ) (63,710 ) Net deferred income tax liabilities - (31,934 ) |
Schedule of 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 130 137 Loss carryforwards 1,712 834 Investment tax credits 1,481 1,481 Foreign tax credits 268 268 Mineral properties 351 437 Provision for reclamation liabilities - 1,091 Other 1,576 - |
Schedule of Income Tax Attributes | As at December 31, 2023, the Company had the following income tax attributes to carry forward. ($000s) Expiry date Canadian non-capital losses 178,403 2043 Canadian capital losses 2,574 Indefinite Canadian tax basis of mineral interest 462,381 Indefinite US non-capital losses 528 2043 US tax basis of mineral interest 27,707 Indefinite |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Explanatory [Abstract] | |
Schedule of Commitments and Contingencies | Payments due by years ($000s) Total 2024 2025-26 2027-28 2029-30 2022 Secured Note – interest 135,576 19,368 38,736 38,736 38,736 2023 Secured Note – interest 99,488 - 47,840 25,824 25,824 Capital expenditure obligations 18,434 18,434 - - - Flow-through share expenditures 19,554 19,554 - - - Mineral interests 7,967 758 1,527 2,403 3,279 Lease obligation 1,542 905 337 150 150 282,561 59,019 88,440 67,113 67,989 |
Basis of Preparation (Details)
Basis of Preparation (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Basis of Preparation [Line Items] | |
Voting rights percentage | 20% |
Bottom of range [member] | |
Basis of Preparation [Line Items] | |
Voting rights percentage | 20% |
Top of range [member] | |
Basis of Preparation [Line Items] | |
Voting rights percentage | 50% |
Summary of Material Accountin_2
Summary of Material Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Equipment [Member] | Minimum [Member] | |
Summary of Material Accounting Policies (Details) [Line Items] | |
Estimated useful life | 3 years |
Equipment [Member] | Maximum [Member] | |
Summary of Material Accounting Policies (Details) [Line Items] | |
Estimated useful life | 15 years |
Buildings [Member] | |
Summary of Material Accounting Policies (Details) [Line Items] | |
Estimated useful life | 40 years |
Cash and Cash Equivalents and_3
Cash and Cash Equivalents and Short-Term Deposits (Details) - Schedule of Cash and Cash Equivalents and Short-Term Deposits - CAD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Cash and Cash Equivalents and Short-Term Deposits [Abstract] | ||
Cash and cash equivalents | $ 82,438 | $ 46,150 |
Short-term deposits | 81,690 | |
Total | $ 82,438 | $ 127,840 |
Amounts Receivable and Prepai_3
Amounts Receivable and Prepaid Expenses (Details) - Schedule of Prepaid Expenses - CAD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Prepaid Expenses [Abstract] | ||
HST | $ 4,493 | $ 4,247 |
Prepaid expenses and other receivables | 3,270 | 3,973 |
Total | $ 7,763 | $ 8,220 |
Investments (Details)
Investments (Details) - CAD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Investments [Line Items] | |||
Common shares received (in Shares) | 151,855 | 55,322 | |
Impairment loss | $ 900 | ||
Interest, percentage | 4.70% | 5.60% | |
Net loss | $ (29,266) | $ (7,394) | |
Paramount [Member] | |||
Investments [Line Items] | |||
Net loss | 200 | 200 | |
Carrying value of investment | $ 1,200 | $ 1,400 |
Investments (Details) - Schedul
Investments (Details) - Schedule of Investments - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Investments in Marketable Securities [Member] | |||
Current assets: | |||
Investments in marketable securities, Beginning balance | $ 3,696 | $ 3,367 | |
Investments in marketable securities, Fair value through other comprehensive income (loss) | 54 | 329 | |
Investments in marketable securities, Loss of associate | |||
Investments in marketable securities, Impairment | |||
Investments in marketable securities, Additions | |||
Investments in marketable securities, Ending balance | 3,750 | 3,696 | |
Investment in Associate [Member] | |||
Non-current assets: | |||
Investment in associate, Beginning balance | 1,389 | 2,429 | |
Investment in associate, Fair value through other comprehensive income (loss) | |||
Investment in associate, Loss of associate | (208) | (206) | |
Investment in associate, Impairment | (873) | [1] | |
Investment in associate ,Additions | 66 | 39 | [2] |
Investment in associate, Ending balance | $ 1,247 | $ 1,389 | |
[1]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 in the consolidated statements of operations and comprehensive income (loss).[2] In 2023, the Company received 151,855 common shares of Paramount for payment of interest on the secured convertible note receivable accrued between July 1, 2022 and December 27, 2023 when the note was repaid. In 2022, the Company received 55,322 common shares of Paramount for payment of interest on the secured convertible note receivable accrued between July 1, 2021 and June 30, 2022. |
Long-Term Receivables and Pre_3
Long-Term Receivables and Prepaid Expenses (Details) $ in Thousands, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2023 CAD ($) | Dec. 31, 2022 CAD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2021 CAD ($) | Dec. 31, 2017 CAD ($) | Dec. 31, 2016 CAD ($) | |
Long-Term Receivables and Prepaid Expenses [Line Items] | ||||||
Construction amounted | $ 32,900 | |||||
Accrued interest | 32,733 | $ 42,956 | ||||
Tax Owning | (985) | 2,996 | ||||
Investors deposited amount | 9,300 | $ 9,300 | ||||
Investor Estimated Amount | 10,800 | |||||
Potential interest | 3,300 | $ 21.5 | ||||
Accrued interest | 10,600 | |||||
Non-trade payables and accrued expenses | $ 3,600 | |||||
Accrued balance | $ 1,800 | |||||
Paid amount | 1,600 | |||||
Credits amount | 2,300 | |||||
Long-term receivables | 3,900 | |||||
Accrued interest | 3,600 | |||||
CEE [Member] | ||||||
Long-Term Receivables and Prepaid Expenses [Line Items] | ||||||
Tax Owning | 2,300 | |||||
BC Hydro [Member] | ||||||
Long-Term Receivables and Prepaid Expenses [Line Items] | ||||||
Paid amount | 43,600 | $ 38,500 | ||||
Construction amounted | 92,700 | |||||
Accrued interest | $ 10,600 | |||||
British Columbia Mineral Exploration Tax Credit [Member] | ||||||
Long-Term Receivables and Prepaid Expenses [Line Items] | ||||||
Accrued interest | $ 3,600 |
Long-Term Receivables and Pre_4
Long-Term Receivables and Prepaid Expenses (Details) - Schedule of Long-Term Receivables and Prepaid Expenses - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Schedule of Long-Term Receivables and Prepaid Expenses [Abstract] | |||
BC Hydro | [1] | $ 92,720 | $ 38,500 |
Canadian Exploration Expenses | [2] | 9,361 | 9,337 |
British Columbia Mineral Exploration Tax Credit | [3] | 3,866 | 3,866 |
Long-term receivables and other assets | $ 105,947 | $ 51,703 | |
[1]During the first quarter in 2023, the Company paid $43.6 million (as at December 31, 2022, $38.5 million) to British Columbia Hydro and Power Authority (“BC Hydro”) as advance payment made pursuant to the Company signing a Facilities Agreement with BC Hydro covering the design and construction of facilities to supply hydro-sourced electricity to the KSM project. Prepayments to complete the design and construction amounted to $92.7 million inclusive of $10.6 million which was accrued as at December 31, 2023, and paid subsequent to December 31, 2023.[2]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 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 and that have been reassessed by depositing the amount of their reassessments, including interest charges, into the accounts of the reassessed investors with the Receiver General in return for such investors agreement to object to their respective reassessments and to repay the Company any refund of the amount deposited on their behalf upon resolution of the Company’s appeal. During 2021 and 2022, the Company deposited $9.3 million into the accounts of certain investors with the Receiver General. The deposits made have been recorded as long-term receivables on the statement of financial position as at December 31, 2023. The potential tax indemnification to the investors is estimated to be $10.8 million, plus $3.3 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.[3]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 of 2023, the Company completed discovery process with the Department of Justice and will continue to move the appeal process forward, including settling an agreed statement of facts. The Company will defend its case in courts in the third quarter of 2024. 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, 2023, 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, 2023 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 Millions, $ in Millions | 12 Months Ended | ||||||||
Jun. 21, 2016 | Dec. 31, 2002 | Dec. 31, 2023 CAD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CAD ($) | Dec. 31, 2012 CAD ($) | Dec. 31, 2012 USD ($) | Dec. 31, 2011 CAD ($) | Dec. 31, 2011 USD ($) | |
Mineral Interests Property and Equipment [Line Items] | |||||||||
Property and equipment | $ 38.4 | $ 38.4 | |||||||
Reclassified Property and equipment | 26.1 | ||||||||
Capitalized borrowing costs | $ 19.4 | 14.7 | |||||||
Percentage of option to acquire from related party | 2% | 2% | 2% | 2% | |||||
Revenue arising from the sale of gold and silver | $ 160 | $ 200 | $ 160 | $ 200 | |||||
Company purchased, description | 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. | 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. | |||||||
Construction in progress | $ 32.9 | ||||||||
Interest expense | $ 186.5 | ||||||||
KSM [Member] | |||||||||
Mineral Interests Property and Equipment [Line Items] | |||||||||
Property and equipment | $ 128 | 38.4 | |||||||
Reclassified Property and equipment | 26.1 | ||||||||
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. | 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. | |||||||
Construction in progress | $ 156.9 | 104.6 | |||||||
Interest expense | 19.4 | 14.7 | |||||||
Depreciation expense | $ 2.5 | $ 0.9 | |||||||
Snowstorm [Member] | |||||||||
Mineral Interests Property and Equipment [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. | 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. | |||||||
3 Aces [Member] | |||||||||
Mineral Interests Property and Equipment [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. | 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. | |||||||
Grassy Mountain [Member] | |||||||||
Mineral Interests Property and Equipment [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. | 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 $10 million cash payment. Settlement is due four months after the later of: the day that the Company receives a feasibility study on the project; and the day that the Company is notified that permitting and bonding for the mine is in place. The current owner of the Grassy Mountain Project is Paramount who completed a feasibility study in 2020 but they have not notified the Company that permitting and bonding for the mine is in place. | |||||||
Courageous Lake [Member] | |||||||||
Mineral Interests Property and Equipment [Line Items] | |||||||||
Purchased of interest, percentage | 100% | ||||||||
SnipGold Corp [Member] | Iskut [Member] | |||||||||
Mineral Interests Property and Equipment [Line Items] | |||||||||
Purchased of interest, percentage | 100% |
Mineral Interests, Property a_4
Mineral Interests, Property and Equipment (Details) - Schedule of Mineral Interests, Property and Equipment - CAD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | |||
Cost | ||||
Balance, beginning | $ 883,116 | [1] | $ 662,553 | |
Additions | 250,464 | 220,563 | ||
Transfers | [1] | |||
Balance, ending | 1,133,580 | 883,116 | [1] | |
Accumulated Depreciation | ||||
Balance, beginning | 1,619 | 274 | ||
Depreciation expense | 3,497 | [1] | 1,345 | |
Balance, ending | 5,116 | 1,619 | ||
Net Book Value | ||||
Net Book value | 1,128,464 | 881,497 | ||
Mineral interests [Member] | ||||
Cost | ||||
Balance, beginning | 687,074 | [1] | 632,005 | |
Additions | 69,732 | 55,069 | ||
Transfers | [1] | |||
Balance, ending | 756,806 | 687,074 | [1] | |
Accumulated Depreciation | ||||
Balance, beginning | ||||
Depreciation expense | [1] | |||
Balance, ending | ||||
Net Book Value | ||||
Net Book value | 756,806 | 687,074 | ||
Construction in progress [member] | ||||
Cost | ||||
Balance, beginning | 121,201 | [1] | 27,061 | |
Additions | 178,764 | 158,728 | ||
Transfers | (101,899) | (64,588) | [1] | |
Balance, ending | 198,066 | 121,201 | [1] | |
Accumulated Depreciation | ||||
Balance, beginning | ||||
Depreciation expense | [1] | |||
Balance, ending | ||||
Net Book Value | ||||
Net Book value | 198,066 | 121,201 | ||
Property & Equipment [Member] | ||||
Cost | ||||
Balance, beginning | 72,404 | [1] | 3,080 | |
Additions | 1,187 | 4,736 | ||
Transfers | 101,899 | 64,588 | [1] | |
Balance, ending | 175,490 | 72,404 | [1] | |
Accumulated Depreciation | ||||
Balance, beginning | 1,070 | 117 | ||
Depreciation expense | 2,517 | [1] | 953 | |
Balance, ending | 3,587 | 1,070 | ||
Net Book Value | ||||
Net Book value | 171,903 | 71,334 | ||
Right-of-use assets [Member] | ||||
Cost | ||||
Balance, beginning | 2,437 | [1] | 407 | |
Additions | 781 | 2,030 | ||
Transfers | [1] | |||
Balance, ending | 3,218 | 2,437 | [1] | |
Accumulated Depreciation | ||||
Balance, beginning | 549 | 157 | ||
Depreciation expense | 980 | [1] | 392 | |
Balance, ending | 1,529 | 549 | ||
Net Book Value | ||||
Net Book value | $ 1,689 | $ 1,888 | ||
[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, 2023 | Dec. 31, 2022 | |||
KSM additions [Member] | ||||
Additions | ||||
Balance at Beginning | [1] | $ 707,190 | $ 502,015 | |
Mineral interests | [1] | 40,490 | 39,985 | |
Construction in progress | [1] | 178,764 | 158,728 | |
Property & equipment | [1] | 1,187 | 4,736 | |
Right-of-use assets | [1] | 781 | 1,726 | |
Total Additions | [1] | 221,222 | 205,175 | |
Balance at Ending | [1] | 928,412 | 707,190 | |
KSM Transfers [Member] | ||||
Additions | ||||
Mineral interests | ||||
Construction in progress | (101,899) | |||
Property & equipment | 101,899 | |||
Right-of-use assets | ||||
Total Additions | ||||
Balance at Ending | ||||
Courageous Lake [Member] | ||||
Additions | ||||
Balance at Beginning | 77,999 | 77,176 | ||
Mineral interests | 3,520 | 823 | ||
Construction in progress | ||||
Property & equipment | ||||
Right-of-use assets | ||||
Total Additions | 3,520 | 823 | ||
Balance at Ending | 81,519 | 77,999 | ||
Iskut [Member] | ||||
Additions | ||||
Balance at Beginning | 49,904 | 41,779 | ||
Mineral interests | 14,174 | 8,125 | ||
Construction in progress | ||||
Property & equipment | ||||
Right-of-use assets | ||||
Total Additions | 14,174 | 8,125 | ||
Balance at Ending | 64,078 | 49,904 | ||
Snowstorm [Member] | ||||
Additions | ||||
Balance at Beginning | 34,562 | 31,471 | ||
Mineral interests | 4,897 | 3,091 | ||
Construction in progress | ||||
Property & equipment | ||||
Right-of-use assets | ||||
Total Additions | 4,897 | 3,091 | ||
Balance at Ending | 39,459 | 34,562 | ||
3 Aces [Member] | ||||
Additions | ||||
Balance at Beginning | 12,079 | 9,034 | ||
Mineral interests | 6,651 | 3,045 | ||
Construction in progress | ||||
Property & equipment | ||||
Right-of-use assets | ||||
Total Additions | 6,651 | 3,045 | ||
Balance at Ending | 18,730 | 12,079 | ||
Grassy Mountain [Member] | ||||
Additions | ||||
Balance at Beginning | 771 | 771 | ||
Mineral interests | ||||
Construction in progress | ||||
Property & equipment | ||||
Right-of-use assets | ||||
Total Additions | ||||
Balance at Ending | 771 | 771 | ||
Corporate [Member] | ||||
Additions | ||||
Balance at Beginning | 611 | 307 | ||
Mineral interests | ||||
Construction in progress | ||||
Property & equipment | ||||
Right-of-use assets | 304 | |||
Total Additions | 304 | |||
Balance at Ending | 611 | 611 | ||
Total [Member] | ||||
Additions | ||||
Balance at Beginning | [2] | 883,116 | 662,553 | |
Mineral interests | 69,732 | 55,069 | [2] | |
Construction in progress | 76,865 | 94,140 | [2] | |
Property & equipment | 103,086 | 69,324 | [2] | |
Right-of-use assets | 781 | 2,030 | [2] | |
Total Additions | 250,464 | 220,563 | [2] | |
Balance at Ending | 1,133,580 | 883,116 | [2] | |
KSM transfers adjusted [Member] | ||||
Additions | ||||
Balance at Beginning | [2] | |||
Mineral interests | [2] | |||
Construction in progress | [2] | (64,588) | ||
Property & equipment | [2] | 64,588 | ||
Right-of-use assets | [2] | |||
Total Additions | [2] | |||
Balance at Ending | [2] | |||
[1]In 2023, Construction in progress additions at KSM included $19.4 million of capitalized borrowing costs (2022 - $14.7 million).[2]Additions in the prior year financial statements were net of $38.4 transfers from construction in progress to property and equipment additions. Additionally, during 2023, $26.1 million of costs were determined to have been ready for use in 2022 and were reclassified from construction in progress to property and equipment to correct for this. |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Liabilities (Details) - Schedule of Accounts Payable and Accrued Liabilities - CAD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Accounts Payable and Accrued Liabilities [Abstract] | ||
Trade payables | $ 27,302 | $ 15,686 |
Non-trade payables and accrued expenses | 5,432 | 27,270 |
Accounts payable and accrued liabilities | $ 32,734 | $ 42,956 |
Provision for Reclamation Lia_3
Provision for Reclamation Liabilities (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Provision for Reclamation Liabilities [Line Items] | ||
Estimated discounted cash flows of future reclamation costs | $ 7.4 | $ 10.8 |
Undiscounted future cash outflows | $ 8.1 | $ 11.5 |
Nominal discount rate | 3.90% | 4.07% |
Reclamation disbursements | $ 3.7 | $ 4.5 |
Rehabilitation expenses | 6.6 | |
Security deposit | 0.7 | |
Deposit with financial institution pledged as security | 10 | 7.9 |
Reclamation Liabilities [Member] | ||
Provision for Reclamation Liabilities [Line Items] | ||
Deposit with financial institution pledged as security | $ 21.4 | 20.6 |
KSM [Member] | ||
Provision for Reclamation Liabilities [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, 2023 | Dec. 31, 2022 | |
Schedule of Provision for Reclamation Liabilities [Abstract] | ||
Beginning of the period | $ 10,846 | $ 8,442 |
Disbursements | (3,664) | (4,519) |
Environmental rehabilitation expense | 6,851 | |
Accretion | 253 | 72 |
End of the period | 7,435 | 10,846 |
Provision for reclamation liabilities – current | 759 | 4,343 |
Provision for reclamation liabilities – long-term | 6,676 | 6,503 |
Total | $ 7,435 | $ 10,846 |
Secured Note Liabilities (Detai
Secured Note Liabilities (Details) $ in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2023 CAD ($) | Dec. 31, 2023 USD ($) shares | Dec. 31, 2022 CAD ($) shares | Dec. 31, 2022 USD ($) shares | Feb. 25, 2022 CAD ($) | |
Secured Note Liabilities (Details) [Line Items] | |||||
Institutional investors rate | 100% | ||||
Institutional investors (in Dollars) | $ 225 | ||||
Percentage of repaid principal | 60% | ||||
Secured note bears interest | 50% | 1% | 1% | ||
Gross silver royalty | 75% | 75% | |||
Outstanding shares percentage | 9.90% | 9.90% | |||
Issued shares (in Shares) | shares | 151,855 | 55,322 | 55,322 | ||
Fair value of loan commitment (in Dollars) | $ 225 | ||||
Fair value at initial recognition | $ 282.3 | $ 225 | |||
Gain loss on remeasurment (in Dollars) | $ 30.8 | $ 18.7 | |||
Investors right to purchase description | On May 11, 2023, the Company announced that it, through its wholly-owned subsidiary, KSM Mining ULC (“KSMCo”), had agreed to the principal terms of a royalty agreement under which Sprott Resource Streaming and Royalty Corp. (“Sprott”) would pay KSMCo US$150 million and KSMCo would grant Sprott up to 1.2% net smelter royalty (“NSR”) on the KSM project. Thereafter, the Company and Sprott agreed to restructure the proposed transaction as the sale of a secured note and, on June 28, 2023, the Company and KSMCo, signed a definitive agreement to sell a secured note (“2023 Secured Note”) that is to be exchanged at maturity for a net smelter returns royalty (the “NSR”) on its 100% owned KSM Project (“KSM”) to Sprott for US$150 million. The transaction closed on June 29, 2023. The key terms of the 2023 Secured Note include | On May 11, 2023, the Company announced that it, through its wholly-owned subsidiary, KSM Mining ULC (“KSMCo”), had agreed to the principal terms of a royalty agreement under which Sprott Resource Streaming and Royalty Corp. (“Sprott”) would pay KSMCo US$150 million and KSMCo would grant Sprott up to 1.2% net smelter royalty (“NSR”) on the KSM project. Thereafter, the Company and Sprott agreed to restructure the proposed transaction as the sale of a secured note and, on June 28, 2023, the Company and KSMCo, signed a definitive agreement to sell a secured note (“2023 Secured Note”) that is to be exchanged at maturity for a net smelter returns royalty (the “NSR”) on its 100% owned KSM Project (“KSM”) to Sprott for US$150 million. The transaction closed on June 29, 2023. The key terms of the 2023 Secured Note include | |||
Interest payable (in Dollars) | $ 21.5 | ||||
Interest deferral amount | 0.625% | 0.625% | |||
Interest expense (in Dollars) | $ 186.5 | ||||
Estimated fair value | $ 198.8 | $ 150 | |||
Common Shares [Member] | |||||
Secured Note Liabilities (Details) [Line Items] | |||||
Issued shares (in Shares) | shares | 1,285,178 | 977,745 | 977,745 | ||
Unpaid interest | 9.90% | 9.90% | |||
Interest deferral amount | 9.90% | 9.90% | |||
Bottom of range [member] | |||||
Secured Note Liabilities (Details) [Line Items] | |||||
Unpaid interest | 1.20% | 1.20% | |||
Top of range [member] | |||||
Secured Note Liabilities (Details) [Line Items] | |||||
Unpaid interest | 1.50% | 1.50% | |||
KSM’s EAC [Member] | |||||
Secured Note Liabilities (Details) [Line Items] | |||||
Investors percent (in Dollars) | $ 247.5 | ||||
Unpaid interest | 1.20% | 1.20% | |||
NSR [Member] | |||||
Secured Note Liabilities (Details) [Line Items] | |||||
Unpaid interest | 1% | 1% | |||
Royalty Increase Election [Member] | |||||
Secured Note Liabilities (Details) [Line Items] | |||||
Unpaid interest | 1.20% | 1.20% | |||
Interest deferral amount | 1.50% | 1.50% | |||
KSMCo [Member] | |||||
Secured Note Liabilities (Details) [Line Items] | |||||
Interest deferral amount | 1.25% | 1.25% | |||
Production Delay Increase [Member] | |||||
Secured Note Liabilities (Details) [Line Items] | |||||
Interest deferral amount | 0.50% | 0.50% | |||
KSM [Member] | |||||
Secured Note Liabilities (Details) [Line Items] | |||||
Interest expense (in Dollars) | $ 180 | ||||
Secured note [Member] | |||||
Secured Note Liabilities (Details) [Line Items] | |||||
Secured note bears interest | 6.50% | ||||
Gain loss on remeasurment (in Dollars) | $ 80.7 | ||||
Unpaid interest | 1% | 1% | |||
Interest expense (in Dollars) | $ 155 | ||||
Secured note [Member] | Common Shares [Member] | |||||
Secured Note Liabilities (Details) [Line Items] | |||||
Investors percent (in Dollars) | $ 232.5 | ||||
Secured Note Outstanding [Member] | |||||
Secured Note Liabilities (Details) [Line Items] | |||||
Unpaid interest | 1% | 1% | |||
Interest expense (in Dollars) | $ 165 |
Secured Note Liabilities (Det_2
Secured Note Liabilities (Details) - Schedule of Inputs and Assumptions - shares | 12 Months Ended | ||
Jun. 29, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Secured Note Liabilities (Details) - Schedule of Inputs and Assumptions [Line Items] | |||
Forecast silver production in thousands of ounces (in Shares) | 166,144 | 166,144 | |
Five year quoted future metal price | |||
Five year quoted future silver price | US$28.62 | US$29.38 | |
Risk-free rate | 4% | 3.40% | |
Credit spread | 4% | 5.30% | |
Share price volatility | 60% | 60% | |
Silver royalty discount factor | 9.20% | 8.60% | |
Gold in thousands of ounces [Member] | |||
Secured Note Liabilities (Details) - Schedule of Inputs and Assumptions [Line Items] | |||
Forecast silver production in thousands of ounces (in Shares) | 10,500 | 10,500 | |
Silver in thousands of ounces [Member] | |||
Secured Note Liabilities (Details) - Schedule of Inputs and Assumptions [Line Items] | |||
Forecast silver production in thousands of ounces (in Shares) | 29,876 | 29,876 | |
Copper in millions of pounds [Member] | |||
Secured Note Liabilities (Details) - Schedule of Inputs and Assumptions [Line Items] | |||
Forecast silver production in thousands of ounces (in Shares) | 19,322 | 19,322 | |
Molybdenum in millions of pounds [Member] | |||
Secured Note Liabilities (Details) - Schedule of Inputs and Assumptions [Line Items] | |||
Forecast silver production in thousands of ounces (in Shares) | 152 | 152 | |
Gold per ounce [Member] | |||
Five year quoted future metal price | |||
Five year quoted future silver price | US$2,346.82 | US$2,553.60 | |
Silver per ounce [Member] | |||
Five year quoted future metal price | |||
Five year quoted future silver price | US$27.48 | US$28.62 | |
Copper per pound [Member] | |||
Five year quoted future metal price | |||
Five year quoted future silver price | US$3.65 | US$4.08 | |
Molybdenum per pound [Member] | |||
Five year quoted future metal price | |||
Five year quoted future silver price | US$29.26 | US$24.89 | |
Inputs and assumptions [Member] | |||
Five year quoted future metal price | |||
Risk-free rate | 3.90% | 4% | |
Credit spread | 5.40% | 4% | |
Share price volatility | 60% | 60% | |
Silver royalty discount factor | 9.10% | 9.20% |
Secured Note Liabilities (Det_3
Secured Note Liabilities (Details) - Schedule of Carrying Amount for the Secured Note - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
2022 Secured Note [Member] | ||
Secured Note Liabilities (Details) - Schedule of Carrying Amount for the Secured Note [Line Items] | ||
Fair value beginning of the period (or on issuance) | $ 263,541 | $ 282,263 |
Change in fair value (gain) loss through profit and loss | 3,096 | (36,967) |
Change in fair value (gain) loss through other comprehensive income (loss) | 34,830 | (2,912) |
Foreign currency translation (gain) loss | (7,104) | 21,157 |
Total change in fair value | 30,822 | (18,722) |
Fair value end of the period | 294,363 | $ 263,541 |
2023 Secured Note [Member] | ||
Secured Note Liabilities (Details) - Schedule of Carrying Amount for the Secured Note [Line Items] | ||
Change in fair value (gain) loss through profit and loss | 33,182 | |
Change in fair value (gain) loss through other comprehensive income (loss) | 49,563 | |
Foreign currency translation (gain) loss | (2,045) | |
Total change in fair value | 80,700 | |
Fair value end of the period | 279,525 | |
Fair value at inception | $ 198,825 |
Secured Note Liabilities (Det_4
Secured Note Liabilities (Details) - Schedule of Fair Value of the Secured Note - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Silver price forward curve [Member] | ||
Secured Note Liabilities (Details) - Schedule of Fair Value of the Secured Note [Line Items] | ||
Inter-relationship between significant inputs and fair value measurement | ● Future metal prices were 10% higher | ● Future silver prices were 10% higher |
Increase (decrease) | $ 20.7 | $ 16.7 |
Silver price forward curve one [Member] | ||
Secured Note Liabilities (Details) - Schedule of Fair Value of the Secured Note [Line Items] | ||
Inter-relationship between significant inputs and fair value measurement | ● Future metal prices were 10% lower | ● Future silver prices were 10% lower |
Increase (decrease) | $ (20.9) | $ (16.9) |
Discount rates (7.6% - 9.6%) [Member] | ||
Secured Note Liabilities (Details) - Schedule of Fair Value of the Secured Note [Line Items] | ||
Inter-relationship between significant inputs and fair value measurement | ● Discount rates were 1% higher | ● Discount rates were 1% higher |
Increase (decrease) | $ (34.4) | $ (25.6) |
Discount rates (7.6% - 9.6%) one [Member] | ||
Secured Note Liabilities (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 | ● Discount rates were 1% lower |
Increase (decrease) | $ 42.1 | $ 30 |
Forecasted silver production [Member] | ||
Secured Note Liabilities (Details) - Schedule of Fair Value of the Secured Note [Line Items] | ||
Inter-relationship between significant inputs and fair value measurement | ● Metal production indicated volumes were 10% higher | ● Silver production indicated silver ounces were 10% higher |
Increase (decrease) | $ 19.7 | $ 16.7 |
Forecasted silver production one [Member] | ||
Secured Note Liabilities (Details) - Schedule of Fair Value of the Secured Note [Line Items] | ||
Inter-relationship between significant inputs and fair value measurement | ● Metal production indicated volumes were 10% lower | ● Silver production indicated silver ounces were 10% lower |
Increase (decrease) | $ (20.1) | $ (16.9) |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - CAD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Shareholders’ equity [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. During the first quarter of 2023, a US$100 million prospectus supplement was filed and the program was renewed. In the first quarter of 2023, 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. In 2023, the Company issued 2,516,839 shares, at an average selling price of $17.36 per share, for net proceeds of $42.8 million under the Company’s At-The-Market offering. As at December 31, 2023, US$67.6 million is available under the ATM. Subsequent to the quarter end, the Company issued 682,686 shares, at an average selling price of $16.50 per share, for net proceeds of $11.0 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. | ||
Shares issued (in Shares) | 151,855 | 55,322 | |
Price per share (in Dollars per share) | $ 22.24 | ||
Gross proceeds | $ 15 | ||
Share Premium | $ 5.5 | $ 4.2 | |
Weighted average share price exercise options (in Shares) | 273,500 | ||
Price per share (in Dollars per share) | $ 15.46 | ||
Average rate per option (in Dollars per share) | $ 0.18 | ||
Outstanding share options (in Shares) | 50,000 | ||
Exercise price per share (in Dollars per share) | $ 17.72 | ||
Restricted share units granted (in Shares) | 277,500 | 232,266 | |
Fair value grants | $ 4.6 | ||
Basic and diluted net loss | $ 29.3 | $ 7.4 | |
Equity financings [Member] | |||
Shareholders’ equity [Line Items] | |||
Shares issued (in Shares) | 875,150 | 675,400 | |
Price per share (in Dollars per share) | $ 22.34 | ||
Gross proceeds | $ 19.6 | ||
Share Premium | 4.2 | ||
Exploration expenditures | $ 15 | ||
RSU [Member] | |||
Shareholders’ equity [Line Items] | |||
Restricted stock units, description | In December 2023, 379,300 RSUs were granted to the Board members, members of senior management, and to other employees of the Company. | ||
Restricted share units granted (in Shares) | 310,266 | 123,800 | |
Fair value grants | $ 5.1 | $ 2.6 | |
Stock options and Restricted share units [Member] | |||
Shareholders’ equity [Line Items] | |||
Stock options term | 5 years |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - Schedule of Stock Option and RSU Transactions - CAD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Stock Option and RSU Transactions [Abstract] | ||
Number of Options Outstanding, beginning (in Shares) | 477,500 | 1,023,334 |
Weighted Average Exercise Price Outstanding, beginning (in Dollars per share) | $ 15.85 | $ 14.61 |
Amortized Value of options Outstanding, beginning | $ 4,117 | $ 8,125 |
Number of RSUs Outstanding, beginning (in Shares) | 345,266 | 173,800 |
Amortized Value of RSUs Outstanding, beginning | $ 538 | $ 572 |
Stock-based Compensation Outstanding, beginning | $ 4,655 | $ 8,697 |
Number of Options Outstanding, ending (in Shares) | 50,000 | 477,500 |
Weighted Average Exercise Price, ending (in Dollars per share) | $ 17.72 | $ 15.85 |
Amortized Value of options, ending | $ 416 | $ 4,117 |
Number of RSUs, ending (in Shares) | 697,726 | 345,266 |
Amortized Value of RSUs, ending | $ 2,984 | $ 538 |
Stock-based Compensation, ending | $ 3,400 | $ 4,655 |
Number of Options, Exercisable (in Shares) | 50,000 | 477,500 |
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) | 399,300 | 320,266 |
Amortized Value of RSUs, Granted | $ 144 | $ 187 |
Stock-based Compensation, Granted | $ 144 | $ 187 |
Number of Options, Exercised option or vested RSU (in Shares) | (50,000) | (540,834) |
Weighted Average Exercise Price, Exercised option or vested RSU (in Dollars per share) | $ 15.46 | $ 13.54 |
Amortized Value of options, Exercised option or vested RSU | $ (460) | $ (3,974) |
Number of RSUs, Exercised option or vested RSU (in Shares) | (41,840) | (148,800) |
Amortized Value of RSUs, Exercised option or vested RSU | $ (823) | $ (3,172) |
Stock-based Compensation, Exercised option or vested RSU | $ (1,283) | $ (7,146) |
Number of Options, Options surrendered for cash (in Shares) | (273,500) | |
Weighted Average Exercise Price, Options surrendered for cash (in Dollars per share) | $ 15.46 | $ 13.54 |
Amortized Value of options, Options surrendered for cash | $ (2,355) | |
Number of RSUs, Options surrendered for cash (in Shares) | ||
Amortized Value of RSUs, Options surrendered for cash | ||
Stock-based Compensation, Options surrendered for cash | $ (2,355) | |
Number of Options, Expired (in Shares) | (104,000) | (5,000) |
Weighted Average Exercise Price, Expired (in Dollars per share) | $ 16.17 | $ 13.14 |
Amortized Value of options, Expired | $ (886) | $ (34) |
Number of RSUs, Expired (in Shares) | (5,000) | |
Amortized Value of RSUs, Expired | $ (33) | |
Stock-based Compensation, Expired | $ (919) | $ (34) |
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 | ||
Number of RSUs, Amortized value of stock-based compensation (in Shares) | ||
Amortized Value of RSUs, Amortized value of stock-based compensation | $ 3,158 | $ 2,951 |
Stock-based Compensation, Amortized value of stock-based compensation | $ 3,158 | $ 2,951 |
Shareholders' Equity (Details_2
Shareholders' Equity (Details) - Schedule of Basic and Diluted Earnings Per Common Share - shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Basic and Diluted Earnings Per Common Share [Abstract] | ||
Weighted average number of common shares outstanding | 83,001,989 | 80,058,861 |
Weighted average shares dilution adjustments: 1 Stock options | ||
RSUs | ||
Diluted weighted average shares outstanding | 83,001,989 | 80,058,861 |
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, 2023 | Dec. 31, 2022 | |
Schedule of Adjustment for Other Non Cash Items within Operating Activities [Abstract] | ||
Impairment of investment in associate | $ 873 | |
Equity loss of associate | 208 | 207 |
Loss (gain) on convertible notes receivable | 103 | (25) |
Interest income earned on convertible notes receivable | (66) | (39) |
Depreciation | 132 | 84 |
Finance costs, net | 254 | 72 |
Effects of exchange rate fluctuation on cash and cash equivalents | (269) | (3,216) |
Total | $ 362 | $ (2,044) |
Fair Value of Financial Asset_3
Fair Value of Financial Assets and Liabilities (Details) $ in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 CAD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CAD ($) | |
Fair Value of Financial Assets and Liabilities [Line Items] | |||
Issuance amount (in Dollars) | $ 1,715 | $ 1,237 | |
Cash and cash equivalents | 82,438 | 46,150 | |
Short-term deposits | 81,690 | ||
Fixed interest rate | 6.50% | ||
Credit Risk [Member] | |||
Fair Value of Financial Assets and Liabilities [Line Items] | |||
Maturity term | 1 year | 1 year | |
Liquidity Risk [Member] | |||
Fair Value of Financial Assets and Liabilities [Line Items] | |||
Issuance amount (in Dollars) | $ 100 | ||
Liquidity risk raised (in Dollars) | 42.8 | ||
Additional market offering (in Dollars) | $ 67.6 | ||
Liquidity Risk [Member] | |||
Fair Value of Financial Assets and Liabilities [Line Items] | |||
Maturity term | 30 days | 30 days | |
Cash and cash equivalents | $ 82,400 | 46,200 | |
Short-term deposits | 81,700 | ||
Current financial liabilities | 33,500 | $ 47,300 | |
Investment Risk [Member] | |||
Fair Value of Financial Assets and Liabilities [Line Items] | |||
Investments | $ 3,700 |
Fair Value of Financial Asset_4
Fair Value of Financial Assets and Liabilities (Details) - Schedule of Fair Values of Financial Assets and Liabilities - CAD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and cash equivalents | $ 82,438 | $ 46,150 |
Short-term deposits | 81,690 | |
Amounts receivable | 5,019 | 6,260 |
Investment in marketable securities | 3,749 | 3,696 |
Convertible notes receivable | 631 | |
Long-term receivables | 13,227 | 13,203 |
Total Assets | 104,433 | 151,630 |
Liabilities | ||
Accounts payable and accrued liabilities | 32,733 | 42,956 |
Secured note liabilities | 573,888 | 263,541 |
Total Liabilities | 606,621 | 306,497 |
Carrying Amount [Member] | ||
Assets | ||
Cash and cash equivalents | 82,438 | 46,150 |
Short-term deposits | 81,690 | |
Amounts receivable | 5,019 | 6,260 |
Investment in marketable securities | 3,749 | 3,696 |
Convertible notes receivable | 631 | |
Long-term receivables | 13,227 | 13,203 |
Total Assets | 104,433 | 151,630 |
Liabilities | ||
Accounts payable and accrued liabilities | 32,733 | 42,956 |
Secured note liabilities | 573,888 | 263,541 |
Total Liabilities | 606,621 | 306,497 |
Level 1 [Member] | ||
Assets | ||
Cash and cash equivalents | 82,438 | 46,150 |
Short-term deposits | 81,690 | |
Amounts receivable | 5,019 | 6,260 |
Investment in marketable securities | 3,749 | 3,696 |
Convertible notes receivable | ||
Long-term receivables | 13,227 | 13,203 |
Total Assets | 104,433 | 150,999 |
Liabilities | ||
Accounts payable and accrued liabilities | 32,733 | 42,956 |
Secured note liabilities | ||
Total Liabilities | 32,733 | 42,956 |
Level 2 [Member] | ||
Assets | ||
Cash and cash equivalents | ||
Short-term deposits | ||
Amounts receivable | ||
Investment in marketable securities | ||
Convertible notes receivable | ||
Long-term receivables | ||
Total Assets | ||
Liabilities | ||
Accounts payable and accrued liabilities | ||
Secured note liabilities | ||
Total Liabilities | ||
Level 3 [Member] | ||
Assets | ||
Cash and cash equivalents | ||
Short-term deposits | ||
Amounts receivable | ||
Investment in marketable securities | ||
Convertible notes receivable | 631 | |
Long-term receivables | ||
Total Assets | 631 | |
Liabilities | ||
Accounts payable and accrued liabilities | ||
Secured note liabilities | 573,888 | 263,541 |
Total Liabilities | $ 573,888 | $ 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 | Dec. 31, 2023 CAD ($) |
Schedule of Contractual Cash Flow Requirements for its Financial Liabilities on Repayment or Maturity Periods [Line Items] | |
2022 Secured Note including interest | $ 294,363 |
2023 Secured Note including interest | 279,524 |
Flow-through share expenditures | 19,554 |
Lease obligation | 1,641 |
Total carrying amount | 595,082 |
Less than 1 year [Member] | |
Schedule of Contractual Cash Flow Requirements for its Financial Liabilities on Repayment or Maturity Periods [Line Items] | |
2022 Secured Note including interest | 19,368 |
2023 Secured Note including interest | |
Flow-through share expenditures | 19,554 |
Lease obligation | 905 |
Total carrying amount | 39,827 |
1-3 years [Member] | |
Schedule of Contractual Cash Flow Requirements for its Financial Liabilities on Repayment or Maturity Periods [Line Items] | |
2022 Secured Note including interest | 38,736 |
2023 Secured Note including interest | 47,840 |
Flow-through share expenditures | |
Lease obligation | 337 |
Total carrying amount | 86,913 |
3-5 years [Member] | |
Schedule of Contractual Cash Flow Requirements for its Financial Liabilities on Repayment or Maturity Periods [Line Items] | |
2022 Secured Note including interest | 38,736 |
2023 Secured Note including interest | 25,824 |
Flow-through share expenditures | |
Lease obligation | 150 |
Total carrying amount | 64,710 |
Greater than 5 years [Member] | |
Schedule of Contractual Cash Flow Requirements for its Financial Liabilities on Repayment or Maturity Periods [Line Items] | |
2022 Secured Note including interest | 197,523 |
2023 Secured Note including interest | 205,860 |
Flow-through share expenditures | |
Lease obligation | 249 |
Total carrying amount | $ 403,632 |
Corporate and Administrative _3
Corporate and Administrative Expenses (Details) - Schedule of Corporate and Administrative Expenses - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Corporate and Administrative Expenses (Details) - Schedule of Corporate and Administrative Expenses [Line Items] | ||
Corporate and administrative expenses | $ 17,441 | $ 16,090 |
Employee compensation [Member] | ||
Corporate and Administrative Expenses (Details) - Schedule of Corporate and Administrative Expenses [Line Items] | ||
Corporate and administrative expenses | 7,165 | 7,479 |
Stock-based Compensation [Member] | ||
Corporate and Administrative Expenses (Details) - Schedule of Corporate and Administrative Expenses [Line Items] | ||
Corporate and administrative expenses | 3,318 | 3,138 |
Professional fees [Member] | ||
Corporate and Administrative Expenses (Details) - Schedule of Corporate and Administrative Expenses [Line Items] | ||
Corporate and administrative expenses | 3,011 | 2,591 |
Other general and administrative [Member] | ||
Corporate and Administrative Expenses (Details) - Schedule of Corporate and Administrative Expenses [Line Items] | ||
Corporate and administrative expenses | $ 3,947 | $ 2,882 |
Related Party Disclosures (Deta
Related Party Disclosures (Details) - Schedule of Compensation to Key Management Personnel - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Compensation of directors: | ||
Compensation to key management personnel | $ 11,312 | $ 11,153 |
Compensation of directors [Member] | ||
Compensation of directors: | ||
Compensation to key management personnel | 1,169 | 1,235 |
Compensation of directors [Member] | Directors’ fees [Member] | ||
Compensation of directors: | ||
Compensation to key management personnel | 734 | 560 |
Compensation of directors [Member] | Stock-based Compensation [Member] | ||
Compensation of directors: | ||
Compensation to key management personnel | 435 | 675 |
Compensation of key management personnel [Member] | ||
Compensation of directors: | ||
Compensation to key management personnel | 10,143 | 9,918 |
Compensation of key management personnel [Member] | Stock-based Compensation [Member] | ||
Compensation of directors: | ||
Compensation to key management personnel | 2,511 | 2,026 |
Compensation of key management personnel [Member] | Salaries and benefits and consulting fees [Member] | ||
Compensation of directors: | ||
Compensation to key management personnel | $ 7,632 | $ 7,892 |
Income Taxes (Details)
Income Taxes (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Taxes [Abstract] | ||
Income tax recovery | $ 8.7 | |
Revaluation of income tax | $ 22.8 | |
Income tax rates | 26.75% | 26.68% |
Deductible temporary difference of deferred tax | $ 1.9 | $ 2.1 |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of Deferred Tax Recovery - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Deferred Tax Recovery [Abstract] | ||
Deferred tax expense (recovery) | $ (8,695) | $ 8,268 |
Total | $ (8,695) | $ 8,268 |
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, 2023 | Dec. 31, 2022 | |
Schedule of Tax Expense Recognized in Other Comprehensive Income or Directly in Equity [Abstract] | ||
Financing costs - recognized in statement of equity | $ (459) | $ (330) |
Revaluation of the secured note liabilities – recognized in OCI | (22,780) | 831 |
Total | $ (23,239) | $ 501 |
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, 2023 | Dec. 31, 2022 | |
Schedule of Reconciliation of the Effective Rate of Income Tax [Abstract] | ||
Earnings (loss) before income taxes | $ (37,961) | $ 874 |
Tax expense calculated | 26.75% | 26.68% |
Income tax calculated using statutory rates | $ (10,153) | $ 233 |
Non-deductible/(non-taxable) items | (1,512) | 2,280 |
Difference in foreign tax rates | (25) | 103 |
Change in deferred tax rates | (134) | (116) |
Movement in tax benefits not recognized | (985) | 2,996 |
Impact of true-up of prior year balances | 180 | 124 |
Renouncement of flow-through expenditures | 4,018 | 2,525 |
Other | (84) | 123 |
Income tax (recovery) expense | $ (8,695) | $ 8,268 |
Income Taxes (Details) - Sche_4
Income Taxes (Details) - Schedule of Deferred Income Tax Assets and Liabilities - CAD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred income tax assets: | ||
Deferred income tax assets | $ 7,763 | $ 8,220 |
Deferred income tax liabilities: | ||
Deferred income tax liabilities | (31,934) | |
Property and equipment [Member] | ||
Deferred income tax assets: | ||
Deferred income tax assets | 1,253 | 565 |
Provision for reclamation liabilities [Member] | ||
Deferred income tax assets: | ||
Deferred income tax assets | 1,406 | 1,235 |
Financing costs [Member] | ||
Deferred income tax assets: | ||
Deferred income tax assets | 2,383 | 2,487 |
Non-capital loss carryforwards [Member] | ||
Deferred income tax assets: | ||
Deferred income tax assets | 46,571 | 38,255 |
Secured note liabilities [Member] | ||
Deferred income tax assets: | ||
Deferred income tax assets | 21,814 | (10,766) |
Mineral interests [Member] | ||
Deferred income tax liabilities: | ||
Deferred income tax liabilities | $ (73,428) | $ (63,710) |
Income Taxes (Details) - Sche_5
Income Taxes (Details) - Schedule of Unrecognized Deferred Tax Assets - CAD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Marketable securities [Member] | ||
Schedule of Unrecognized Deferred Tax Assets [Line Items] | ||
Unrecognized deferred income tax assets | $ 130 | $ 137 |
Loss carryforwards [Member] | ||
Schedule of Unrecognized Deferred Tax Assets [Line Items] | ||
Unrecognized deferred income tax assets | 1,712 | 834 |
Investment tax credits [Member] | ||
Schedule of Unrecognized Deferred Tax Assets [Line Items] | ||
Unrecognized deferred income tax assets | 1,481 | 1,481 |
Foreign tax credits [Member] | ||
Schedule of Unrecognized Deferred Tax Assets [Line Items] | ||
Unrecognized deferred income tax assets | 268 | 268 |
Mineral properties [Member] | ||
Schedule of Unrecognized Deferred Tax Assets [Line Items] | ||
Unrecognized deferred income tax assets | 351 | 437 |
Provision for reclamation liabilities [member] | ||
Schedule of Unrecognized Deferred Tax Assets [Line Items] | ||
Unrecognized deferred income tax assets | 1,091 | |
Other [Member] | ||
Schedule of Unrecognized Deferred Tax Assets [Line Items] | ||
Unrecognized deferred income tax assets | $ 1,576 |
Income Taxes (Details) - Sche_6
Income Taxes (Details) - Schedule of Income Tax Attributes $ in Thousands | 12 Months Ended |
Dec. 31, 2023 CAD ($) | |
Canadian non-capital losses [Member] | |
Schedule of Income Tax Attributes [Line Items] | |
Income tax attributes | $ 178,403 |
Expiry date | 2043 |
Canadian capital losses [Member] | |
Schedule of Income Tax Attributes [Line Items] | |
Income tax attributes | $ 2,574 |
Expiry date | Indefinite |
Canadian tax basis of mineral interest [Member] | |
Schedule of Income Tax Attributes [Line Items] | |
Income tax attributes | $ 462,381 |
Expiry date | Indefinite |
US non-capital losses [Member] | |
Schedule of Income Tax Attributes [Line Items] | |
Income tax attributes | $ 528 |
Expiry date | 2043 |
US tax basis of mineral interest [Member] | |
Schedule of Income Tax Attributes [Line Items] | |
Income tax attributes | $ 27,707 |
Expiry date | Indefinite |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2024 CAD ($) | Jul. 31, 2024 CAD ($) | Dec. 31, 2023 CAD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 | |
Commitments and Contingencies [Line Items] | |||||
Construction cost | $ 32,900,000 | ||||
Company paid | 57,100,000 | ||||
Facilities Agreement | 59,800,000 | ||||
Reinforcement security | $ 59,800,000 | ||||
Project power consumption | 8 years | ||||
Design and construction amount | $ 92,700,000 | ||||
Accrued amount | $ 10,600,000 | ||||
Interest | 50% | 50% | 1% | ||
Annual payment (in Dollars) | $ 3,300,000 | $ 21.5 | |||
2022 Secured Note [Member] | |||||
Commitments and Contingencies [Line Items] | |||||
Interest | 6.50% | 6.50% | |||
Annual payment (in Dollars) | $ 14.6 | ||||
2023 Secured Note [Member] | |||||
Commitments and Contingencies [Line Items] | |||||
Interest | 6.50% | 6.50% | |||
Annual payment (in Dollars) | $ 9.8 | ||||
Minimum [Member] | |||||
Commitments and Contingencies [Line Items] | |||||
Interest | 1% | 1% | |||
Maximum [Member] | |||||
Commitments and Contingencies [Line Items] | |||||
Interest | 1.20% | 1.20% | |||
BC Hydro [Member] | |||||
Commitments and Contingencies [Line Items] | |||||
Company paid | $ 24,900,000 | ||||
Forecast [Member] | |||||
Commitments and Contingencies [Line Items] | |||||
Additional expenditure | $ 40 | $ 14,000,000 |
Commitments and Contingencies_3
Commitments and Contingencies (Details) - Schedule of Commitments and Contingencies $ in Thousands | Dec. 31, 2023 CAD ($) |
Schedule of Commitments and Contingencies [Line Items] | |
Commitments payments | $ 282,561 |
2022 Secured Note – interest [Member] | |
Schedule of Commitments and Contingencies [Line Items] | |
Commitments payments | 135,576 |
2023 Secured Note – interest [Member] | |
Schedule of Commitments and Contingencies [Line Items] | |
Commitments payments | 99,488 |
Capital expenditure obligations [Member] | |
Schedule of Commitments and Contingencies [Line Items] | |
Commitments payments | 18,434 |
Flow-through share expenditures [Member] | |
Schedule of Commitments and Contingencies [Line Items] | |
Commitments payments | 19,554 |
Mineral interests [Member] | |
Schedule of Commitments and Contingencies [Line Items] | |
Commitments payments | 7,967 |
Lease obligation [Member] | |
Schedule of Commitments and Contingencies [Line Items] | |
Commitments payments | 1,542 |
2024 [Member] | |
Schedule of Commitments and Contingencies [Line Items] | |
Commitments payments | 59,019 |
2024 [Member] | 2022 Secured Note – interest [Member] | |
Schedule of Commitments and Contingencies [Line Items] | |
Commitments payments | 19,368 |
2024 [Member] | 2023 Secured Note – interest [Member] | |
Schedule of Commitments and Contingencies [Line Items] | |
Commitments payments | |
2024 [Member] | Capital expenditure obligations [Member] | |
Schedule of Commitments and Contingencies [Line Items] | |
Commitments payments | 18,434 |
2024 [Member] | Flow-through share expenditures [Member] | |
Schedule of Commitments and Contingencies [Line Items] | |
Commitments payments | 19,554 |
2024 [Member] | Mineral interests [Member] | |
Schedule of Commitments and Contingencies [Line Items] | |
Commitments payments | 758 |
2024 [Member] | Lease obligation [Member] | |
Schedule of Commitments and Contingencies [Line Items] | |
Commitments payments | 905 |
2025-26 [Member] | |
Schedule of Commitments and Contingencies [Line Items] | |
Commitments payments | 88,440 |
2025-26 [Member] | 2022 Secured Note – interest [Member] | |
Schedule of Commitments and Contingencies [Line Items] | |
Commitments payments | 38,736 |
2025-26 [Member] | 2023 Secured Note – interest [Member] | |
Schedule of Commitments and Contingencies [Line Items] | |
Commitments payments | 47,840 |
2025-26 [Member] | Capital expenditure obligations [Member] | |
Schedule of Commitments and Contingencies [Line Items] | |
Commitments payments | |
2025-26 [Member] | Flow-through share expenditures [Member] | |
Schedule of Commitments and Contingencies [Line Items] | |
Commitments payments | |
2025-26 [Member] | Mineral interests [Member] | |
Schedule of Commitments and Contingencies [Line Items] | |
Commitments payments | 1,527 |
2025-26 [Member] | Lease obligation [Member] | |
Schedule of Commitments and Contingencies [Line Items] | |
Commitments payments | 337 |
2027-28 [Member] | |
Schedule of Commitments and Contingencies [Line Items] | |
Commitments payments | 67,113 |
2027-28 [Member] | 2022 Secured Note – interest [Member] | |
Schedule of Commitments and Contingencies [Line Items] | |
Commitments payments | 38,736 |
2027-28 [Member] | 2023 Secured Note – interest [Member] | |
Schedule of Commitments and Contingencies [Line Items] | |
Commitments payments | 25,824 |
2027-28 [Member] | Capital expenditure obligations [Member] | |
Schedule of Commitments and Contingencies [Line Items] | |
Commitments payments | |
2027-28 [Member] | Flow-through share expenditures [Member] | |
Schedule of Commitments and Contingencies [Line Items] | |
Commitments payments | |
2027-28 [Member] | Mineral interests [Member] | |
Schedule of Commitments and Contingencies [Line Items] | |
Commitments payments | 2,403 |
2027-28 [Member] | Lease obligation [Member] | |
Schedule of Commitments and Contingencies [Line Items] | |
Commitments payments | 150 |
2029-30 [Member] | |
Schedule of Commitments and Contingencies [Line Items] | |
Commitments payments | 67,989 |
2029-30 [Member] | 2022 Secured Note – interest [Member] | |
Schedule of Commitments and Contingencies [Line Items] | |
Commitments payments | 38,736 |
2029-30 [Member] | 2023 Secured Note – interest [Member] | |
Schedule of Commitments and Contingencies [Line Items] | |
Commitments payments | 25,824 |
2029-30 [Member] | Capital expenditure obligations [Member] | |
Schedule of Commitments and Contingencies [Line Items] | |
Commitments payments | |
2029-30 [Member] | Flow-through share expenditures [Member] | |
Schedule of Commitments and Contingencies [Line Items] | |
Commitments payments | |
2029-30 [Member] | Mineral interests [Member] | |
Schedule of Commitments and Contingencies [Line Items] | |
Commitments payments | 3,279 |
2029-30 [Member] | Lease obligation [Member] | |
Schedule of Commitments and Contingencies [Line Items] | |
Commitments payments | $ 150 |