Condensed Consolidated Interim Financial Statements
Unaudited
Three and Six Months Ended June 30, 2024 and 2023
| | |
Notes | | | June 30,
2024 | | | December 31,
2023 | |
| ASSETS | | | | | | | | | |
| | | | | | | | | | |
| Current assets | | | | | | | | | |
| Cash and cash equivalents | | | | $ | 68,097 | | $ | 35,286 | |
| Other investments | | 4 | | | 558 | | | 5,135 | |
| Accounts and other receivables | | 5 | | | 26,983 | | | 22,276 | |
| Income tax receivable | | | | | 1,729 | | | 3,268 | |
| Inventories | | 6 | | | 23,798 | | | 27,258 | |
| Prepaids and other assets | | | | | 6,341 | | | 7,550 | |
| Total current assets | | | | | 127,506 | | | 100,773 | |
| | | | | | | | | | |
| Non-current income tax receivable | | | | | 3,940 | | | 4,262 | |
| Non-current IVA receivable | | 5 | | | 20,313 | | | 23,320 | |
| Non-current loans receivable | | 5 | | | 1,758 | | | 1,874 | |
| Deferred financing fees | | 9 | | | 4,138 | | | 7,545 | |
| Other non-current assets | | 8 | | | 43,122 | | | 22,376 | |
| Mineral properties, plant and equipment | | 8, 9 | | | 382,052 | | | 314,657 | |
| | | | | | | | | | |
| Total assets | | | | $ | 582,829 | | $ | 474,807 | |
| | | | | | | | | | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | | | | |
| | | | | | | | | | |
| Current liabilities | | | | | | | | | |
| Accounts payable, accrued liabilities and other current liabilities | | | | $ | 47,593 | | $ | 46,582 | |
| Income taxes payable | | | | | 9,076 | | | 7,801 | |
| Loans payable | | 9 | | | 3,395 | | | 3,861 | |
| Derivative liability | | 17 | | | 2,937 | | | - | |
| Total current liabilities | | | | | 63,001 | | | 58,244 | |
| | | | | | | | | | |
| Loans payable | | 9 | | | 59,165 | | | 4,658 | |
| Provision for reclamation and rehabilitation | | | | | 8,956 | | | 8,745 | |
| Deferred income tax liability | | | | | 13,486 | | | 13,730 | |
| Other non-current liabilities | | | | | 2,678 | | | 3,089 | |
| Derivative liability | | 17 | | | 6,316 | | | - | |
| Total liabilities | | | | | 153,602 | | | 88,466 | |
| | | | | | | | | | |
| Shareholders' equity | | | | | | | | | |
| Common shares | | | | | 779,473 | | | 722,695 | |
| Contributed surplus | | | | | 5,781 | | | 4,556 | |
| Retained deficit | | | | | (356,027 | ) | | (340,910 | ) |
| Total shareholders' equity | | | | | 429,227 | | | 386,341 | |
| Total liabilities and shareholders' equity | | | | $ | 582,829 | | $ | 474,807 | |
The accompanying notes are an integral part of these consolidated financial statements.
Approved on behalf of the Board:
| /s/ Margaret Beck | | /s/ Daniel Dickson |
| Director | | Director |
| | | | | | Three months ended | | | Six months ended | |
| | |
Notes | | | June 30,
2024 | | | June 30,
2023 | | | June 30,
2024 | | | June 30,
2023 | |
| Revenue | | 11 | | $ | 58,260 | | $ | 50,071 | | $ | 121,985 | | $ | 105,532 | |
| | | | | | | | | | | | | | | | |
| Cost of sales: | | | | | | | | | | | | | | | |
| Direct production costs | | | | | 33,703 | | | 25,478 | | | 70,408 | | | 51,994 | |
| Royalties | | | | | 5,648 | | | 5,749 | | | 12,056 | | | 12,284 | |
| Share-based compensation | | 10 (b)(c) | | | 74 | | | (294 | ) | | 153 | | | (162 | ) |
| Depreciation | | | | | 8,639 | | | 6,596 | | | 17,516 | | | 12,849 | |
| | | | | | 48,064 | | | 37,529 | | | 100,133 | | | 76,965 | |
| Mine operating earnings | | | | | 10,196 | | | 12,542 | | | 21,852 | | | 28,567 | |
| | | | | | | | | | | | | | | | |
| Expenses: | | | | | | | | | | | | | | | |
| Exploration, evaluation and development | | 12 | | | 4,290 | | | 4,359 | | | 8,560 | | | 8,523 | |
| General and administrative | | 13 | | | 4,240 | | | 2,358 | | | 8,284 | | | 7,275 | |
| Write off of mineral properties | | | | | - | | | 435 | | | - | | | 435 | |
| | | | | | 8,530 | | | 7,152 | | | 16,844 | | | 16,233 | |
| Operating earnings | | | | | 1,666 | | | 5,390 | | | 5,008 | | | 12,334 | |
| | | | | | | | | | | | | | | | |
| Finance costs | | | | | 277 | | | 374 | | | 591 | | | 774 | |
| | | | | | | | | | | | | | | | |
| Other income (expense): | | | | | | | | | | | | | | | |
| Foreign exchange gain (loss) | | | | | (3,998 | ) | | 1,855 | | | (2,819 | ) | | 3,744 | |
| Loss on derivative contracts | | | | | (9,253 | ) | | - | | | (9,253 | ) | | - | |
| Investment and other | | | | | 570 | | | (2,717 | ) | | 603 | | | 1,427 | |
| | | | | | (12,681 | ) | | (862 | ) | | (11,469 | ) | | 5,171 | |
| Earnings (loss) before income taxes | | | | | (11,292 | ) | | 4,154 | | | (7,052 | ) | | 16,731 | |
| | | | | | | | | | | | | | | | |
| Income tax expense: | | | | | | | | | | | | | | | |
| Current income tax expense | | | | | 2,878 | | | 4,442 | | | 8,545 | | | 8,887 | |
| Deferred income tax expense (recovery) | | | | | (163 | ) | | 766 | | | (396 | ) | | 2,442 | |
| | | | | | 2,715 | | | 5,208 | | | 8,149 | | | 11,329 | |
| Net earnings (loss) and comprehensive earnings (loss) | | | | $ | (14,007 | ) | $ | (1,054 | ) | $ | (15,201 | ) | $ | 5,402 | |
| | | | | | | | | | | | | | | | |
| Basic earnings (loss) per share | | | | $ | (0.06 | ) | $ | (0.01 | ) | $ | (0.06 | ) | | 0.03 | |
| Diluted earnings (loss) per share | | 10(f) | | $ | (0.06 | ) | $ | (0.01 | ) | $ | (0.06 | ) | | 0.03 | |
| Basic weighted average number of shares outstanding | | | | | 242,899,679 | | | 191,446,597 | | | 235,201,630 | | | 190,867,192 | |
| Diluted weighted average number of shares outstanding | | 10(f) | | | 242,899,679 | | | 191,446,597 | | | 235,201,630 | | | 192,811,731 | |
The accompanying notes are an integral part of these consolidated financial statements.
| | | Notes | | | Number of
shares | | | Share
Capital | | | Contributed
Surplus | | | Retained
Deficit | | | Total
Shareholders'
Equity | |
| | | | | | | | | | | | | | | | | | | |
| Balance at December 31, 2022 | | | | | 189,995,563 | | $ | 657,866 | | $ | 6,115 | | $ | (348,087 | ) | $ | 315,894 | |
| | | | | | | | | | | | | | | | | | | |
| Exercise of options | | 10 (b) | | | 1,097,900 | | | 3,758 | | | (1,305 | ) | | - | | | 2,453 | |
| Settlement of performance and deferred share units | | 10 (c) | | | 411,836 | | | 405 | | | (2,817 | ) | | - | | | (2,412 | ) |
| Share-based compensation | | 10 (b)(c) | | | - | | | - | | | 2,040 | | | - | | | 2,040 | |
| Canceled options | | 10 (b) | | | - | | | - | | | (240 | ) | | 240 | | | - | |
| Earnings for the period | | | | | - | | | - | | | - | | | 5,402 | | | 5,402 | |
| Balance at June 30, 2023 | | 191,505,299 | | | | | $ | 662,029 | | $ | 3,793 | | $ | (342,445 | ) | $ | 323,377 | |
| | | | | | | | | | | | | | | | | | | |
| Public equity offerings, net of issuance costs | | 10 (a) | | | 25,740,193 | | | 60,666 | | | - | | | - | | | 60,666 | |
| Exercise of options | | 10 (b) | | | - | | | - | | | - | | | - | | | - | |
| Share-based compensation | | 10 (b)(c) | | | - | | | - | | | 1,577 | | | - | | | 1,577 | |
| Canceled options | | 10 (b) | | | - | | | - | | | (814 | ) | | 814 | | | - | |
| Earnings for the period | | | | | - | | | - | | | - | | | 721 | | | 721 | |
| Balance at December 31, 2023 | | 217,245,492 | | | | | $ | 722,695 | | $ | 4,556 | | $ | (340,910 | ) | $ | 386,341 | |
| | | | | | | | | | | | | | | | | | | |
| Public equity offerings, net of issuance costs | | 10 (a) | | | 27,540,971 | | | 53,608 | | | - | | | - | | | 53,608 | |
| Exercise of options | | 10 (b) | | | 1,079,200 | | | 3,170 | | | (1,023 | ) | | - | | | 2,147 | |
| Canceled options | | 10 (b) | | | - | | | - | | | (84 | ) | | 84 | | | - | |
| Share-based compensation | | 10 (b)(c) | | | - | | | - | | | 2,332 | | | - | | | 2,332 | |
| Loss for the period | | | | | - | | | - | | | - | | | (15,201 | ) | | (15,201 | ) |
| Balance at June 30, 2024 | | | | | 245,865,663 | | $ | 779,473 | | $ | 5,781 | | $ | (356,027 | ) | $ | 429,227 | |
The accompanying notes are an integral part of these consolidated financial statements.
| | | | Three months ended | | | Six months ended | |
| Notes | | June 30,
2024 | | | June 30,
2023 | | | June 30,
2024 | | | June 30,
2023 | |
| Operating activities | | | | | | | | | | | | | |
| Net earnings (loss) for the period | | $ | (14,007 | ) | $ | (1,054 | ) | $ | (15,201 | ) | $ | 5,402 | |
| | | | | | | | | | | | | | |
| Items not affecting cash: | | | | | | | | | | | | | |
| Share-based compensation | 10 (b)(c) | | 1,162 | | | 415 | | | 2,332 | | | 2,040 | |
| Depreciation | 8 | | 8,933 | | | 6,973 | | | 18,068 | | | 13,592 | |
| Write off of exploration properties | 8 | | - | | | 435 | | | - | | | 435 | |
| Deferred income tax expense (recovery) | | | (113 | ) | | 766 | | | (244 | ) | | 2,442 | |
| Unrealized foreign exchange loss (gain) | | | 2,196 | | | 519 | | | 2,332 | | | 1,614 | |
| Finance costs | | | 277 | | | 374 | | | 591 | | | 774 | |
| Accretion of loans receivable | | | (59 | ) | | (114 | ) | | (134 | ) | | (207 | ) |
| (Gain) loss on asset disposal | | | - | | | (5 | ) | | 18 | | | (67 | ) |
| (Gain) loss on derivatives | 17 | | 9,253 | | | - | | | 9,253 | | | - | |
| (Gain) loss on other investments | 4 | | 424 | | | 3,150 | | | 1,285 | | | 53 | |
| Performance and deferred share units settled in cash | | | - | | | - | | | - | | | (2,118 | ) |
| Net changes in working capital | 14 | | 4,301 | | | (6,606 | ) | | (1,350 | ) | | (19,508 | ) |
| Cash from operating activities | | | 12,367 | | | 4,853 | | | 16,950 | | | 4,452 | |
| | | | | | | | | | | | | | |
| Investing activities | | | | | | | | | | | | | |
| Payment for mineral properties, plant and equipment | 8 | | (55,829 | ) | | (23,864 | ) | | (100,698 | ) | | (44,581 | ) |
| Proceeds from disposal of other investments | 4 | | 649 | | | 1,846 | | | 3,292 | | | 1,846 | |
| Redemption of non-current deposits | | | - | | | (163 | ) | | - | | | (95 | ) |
| Cash used in investing activities | | | (55,180 | ) | | (22,181 | ) | | (97,406 | ) | | (42,830 | ) |
| | | | | | | | | | | | | | |
| Financing activities | | | | | | | | | | | | | |
| Repayment of loans payable | 9 | | (971 | ) | | (1,575 | ) | | (2,159 | ) | | (3,149 | ) |
| Repayment of lease liabilities | | | (104 | ) | | (86 | ) | | (201 | ) | | (149 | ) |
| Interest paid | 9 | | (116 | ) | | (214 | ) | | (251 | ) | | (453 | ) |
| Net proceeds from public equity offerings | 10 (a) | | 14,698 | | | - | | | 53,608 | | | - | |
| Proceeds from exercise of options | 10 (b) | | 2,147 | | | 641 | | | 2,147 | | | 2,453 | |
| Proceeds from loans payable | | | 60,000 | | | - | | | 60,000 | | | - | |
| Proceeds from loans receivable | | | 250 | | | 400 | | | 700 | | | 500 | |
| Payment of deferred financing fees | | | (35 | ) | | - | | | (731 | ) | | - | |
| Performance and deferred share units witholding tax settlement | | | - | | | - | | | - | | | (294 | ) |
| Cash from (used in) financing activities | | 75,869 | | | (834 | ) | | 113,113 | | | (1,092 | ) |
| | | | | | | | | | | | | |
| Effect of exchange rate change on cash and cash equivalents | | 165 | | | 16 | | | 154 | | | (417 | ) |
| | | | | | | | | | | | | |
| Increase (decrease) in cash and cash equivalents | | 33,221 | | | (18,146 | ) | | 32,811 | | | (39,887 | ) |
| Cash and cash equivalents, beginning of the period | | 34,876 | | | 61,650 | | | 35,286 | | | 83,391 | |
| Cash and cash equivalents, end of the period | $ | 68,097 | | $ | 43,504 | | $ | 68,097 | | $ | 43,504 | |
Supplemental cash flow information (Note 14)
The accompanying notes are an integral part of these consolidated financial statements.
1. CORPORATE INFORMATION
Endeavour Silver Corp. (the "Company" or "Endeavour Silver") is a corporation governed by the Business Corporations Act (British Columbia, Canada). The Company is engaged in silver mining in Mexico and related activities including acquisition, exploration, development, extraction, processing, refining and reclamation. The Company is also engaged in exploration activities in Chile and United States. The address of the registered office is #1130 - 609 Granville Street, Vancouver, B.C., V7Y 1G5.
2. BASIS OF PRESENTATION
These condensed consolidated interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting and do not include all of the information required for full annual financial statements and should be read in conjunction with the Company's consolidated financial statements as at and for the year ended December 31, 2023.
The Board of Directors approved the consolidated financial statements for issue on July 31, 2024.
The preparation of consolidated financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
These consolidated financial statements are presented in the Company's functional currency of US dollars and include the accounts of the Company and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated upon consolidation of these subsidiaries.
3. MATERIAL ACCOUNTING POLICIES
The accounting policies applied in these condensed consolidated interim financial statements are the same as those applied in the Company's annual audited consolidated financial statements as at and for the year ended December 31, 2023, except as described below.
In preparing these condensed consolidated interim financial statements, the significant judgements made by management in applying the Company's accounting policies and the key sources of estimation uncertainty were the same as those that were applied to the annual audited consolidated financial statements for the year ended December 31, 2023 and should be read in conjunction with the Company's annual audited consolidated financial statements for the year ended December 31, 2023.
The accounting policies below have been applied consistently to all periods presented and by all subsidiaries in the group except for new accounting standards adopted during the year, which were adopted either on a prospective basis or on a modified retrospective basis, without restatement of comparative periods as described below.
Derivative financial instruments
The Company may hold derivative financial instruments to hedge its risk exposure to fluctuations in commodity prices and other currencies against the US Dollar. Derivative financial instruments are measured at fair value at each reporting period. All derivative instruments not designated in a hedge relationship are classified as financial instruments at fair value through profit or loss. Changes in fair value of non-hedging derivative financial instruments are included in net earnings or loss.
Accounting standards adopted during the period
The Company applied Classification of Liabilities as Current or Non-current and Non-current Liabilities with Covenants - Amendments to IAS 1, issued in 2020 and 2022, for the first time in its 2024 condensed consolidated interim financial statements. The amendments clarify certain requirements for determining whether a liability is classified as current or non-current and require new disclosures in the annual financial statements for non-current liabilities that are subject to covenants within 12 months after the end of the reporting period. The adoption of the amendments did not result in any adjustment to the condensed consolidated interim financial statements.
4. OTHER INVESTMENTS
| | | June 30,
2024 | | | December 31,
2023 | |
| Balance, beginning of period | $ | 5,135 | | $ | 10,035 | |
| Investment additions, at cost | | - | | | 73 | |
| Proceeds from disposals | | (3,292 | ) | | (2,451 | ) |
| Loss on investments | | (1,285 | ) | | (2,522 | ) |
| Balance, end of period | $ | 558 | | $ | 5,135 | |
The Company holds $516 in marketable securities that are classified as Level 1 and $42 in marketable securities that are classified as Level 3 in the fair value hierarchy (Note 17) and are classified as financial assets measured at FVTPL. Marketable securities classified as Level 3 in the fair value hierarchy are share purchase warrants and the fair value of the warrants at each period end has been estimated using the Black-Scholes Option Pricing Model.
5. ACCOUNTS AND OTHER RECEIVABLES
| | | June 30,
2024 | | | December 31,
2023 | |
| Trade receivables | $ | 6,838 | | $ | 6,608 | |
| IVA receivable | | 18,463 | | | 12,564 | |
| Other receivables | | 682 | | | 1,654 | |
| Current portion of loan receivable | | 1,000 | | | 1,450 | |
| | $ | 26,983 | | $ | 22,276 | |
The trade receivables consist of receivables from provisional silver and gold sales from the Bolañitos mine. The fair value of receivables arising from concentrate sales contracts that contain provisional pricing mechanisms is determined using the appropriate period end closing prices on the measurement date from the exchange that is the principal active market for the particular metal. As such, these receivables, which meet the definition of an embedded derivative, are classified within Level 2 of the fair value hierarchy (Note 17).
As at June 30, 2024, the total Mexican subsidiaries value added tax, Impuesto al Valor Agregado ("IVA"), receivable of $38,776 (December 31, 2023 - $35,884) has been allocated between the current portion of $18,463, which is included in accounts and other receivables, and a non-current portion of $20,313 (December 31, 2023 - $12,564 and $23,320 respectively). The non- current portion includes $1,760 (December 31, 2023 - $1,728) receivable in Guanacevi, which is currently under appeal and is unlikely to be received in the next 12 months, and $17,127 and $1,588 IVA receivable for Terronera and Pitarrilla respectively which has not been submitted for refund.
The Company has a loan receivable in the amount of $5,000 due in cash payments over a five year period of which $3,250 remains unpaid as of June 30, 2024. As of June 30, 2024, the carrying value of the loan receivable is $2,758, consisting of the current portion of $1,000 and non-current portion of $1,758.
6. INVENTORIES
| | | June 30,
2024 | | | December 31,
2023 | |
| Warehouse inventory | $ | 14,163 | | $ | 12,885 | |
| Stockpile inventory | | 2,089 | | | 3,279 | |
| Finished goods inventory | | 6,065 | | | 9,491 | |
| Work in process inventory | | 1,481 | | | 1,603 | |
| | $ | 23,798 | | $ | 27,258 | |
The warehouse inventory balance at June 30, 2024 and December 31, 2023 includes a provision created in the prior years, in the amount of $1,179 at the Guanacevi mine and $1,038 at the Bolañitos mine.
7. RELATED PARTY TRANSACTIONS
The Company was charged $49 and $162 for legal services for the three and six months ended June 30, 2024 by a legal firm in which the Company's corporate secretary is a partner (June 30, 2023 - $218 and $286 respectively). The Company has $50 account payable to the legal firm as at June 30, 2024 (December 31, 2023 - $86).
8. MINERAL PROPERTIES, PLANT AND EQUIPMENT
| | | Mineral
properties | | |
Plant | | | Machinery &
equipment | | |
Building | | | Transport &
office equipment | | |
Total | |
| Cost | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| Balance at December 31, 2022 | $ | 600,068 | | $ | 96,860 | | $ | 106,260 | | $ | 20,356 | | $ | 13,277 | | $ | 836,821 | |
| | | | | | | | | | | | | | | | | | | |
| Additions | | 56,753 | | | 36,754 | | | 12,134 | | | 5,194 | | | 2,382 | | | 113,217 | |
| Disposals | | (674 | ) | | - | | | (417 | ) | | - | | | (623 | ) | | (1,714 | ) |
| Balance at December 31, 2023 | $ | 656,147 | | $ | 133,614 | | $ | 117,977 | | $ | 25,550 | | $ | 15,036 | | $ | 948,324 | |
| Additions | | 54,531 | | | 19,806 | | | 9,915 | | | 962 | | | 789 | | | 86,003 | |
| Disposals | | - | | | (42 | ) | | (217 | ) | | - | | | (24 | ) | | (283 | ) |
| Balance at June 30, 2024 | $ | 710,678 | | $ | 153,378 | | $ | 127,675 | | $ | 26,512 | | $ | 15,801 | | $ | 1,034,044 | |
| | | | | | | | | | | | | | | | | | | |
| Accumulated depreciation | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| Balance at December 31, 2022 | $ | 445,981 | | $ | 84,034 | | $ | 54,420 | | $ | 9,381 | | $ | 9,113 | | $ | 602,929 | |
| | | | | | | | | | | | | | | | | | | |
| Depreciation | | 20,723 | | | 1,598 | | | 7,241 | | | 365 | | | 1,581 | | | 31,508 | |
| Disposals | | - | | | - | | | (177 | ) | | - | | | (593 | ) | | (770 | ) |
| Balance at December 31, 2023 | $ | 466,704 | | $ | 85,632 | | $ | 61,484 | | $ | 9,746 | | $ | 10,101 | | $ | 633,667 | |
| Depreciation | | 12,845 | | | 865 | | | 3,983 | | | 193 | | | 711 | | | 18,597 | |
| Disposals | | - | | | (42 | ) | | (216 | ) | | - | | | (14 | ) | | (272 | ) |
| | | | | | | | | | | | | | | | | | | |
| Balance at June 30, 2024 | $ | 479,549 | | $ | 86,455 | | $ | 65,251 | | $ | 9,939 | | $ | 10,798 | | $ | 651,992 | |
| | | | | | | | | | | | | | | | | | | |
| Net book value | | | | | | | | | | | | | | | | | | |
| At December 31, 2023 | $ | 189,443 | | $ | 47,982 | | $ | 56,493 | | $ | 15,804 | | $ | 4,935 | | $ | 314,657 | |
| At June 30, 2024 | $ | 231,129 | | $ | 66,923 | | $ | 62,424 | | $ | 16,573 | | $ | 5,003 | | $ | 382,052 | |
Included in mineral properties is $83,571 in acquisition costs for exploration properties and $100,044 for acquisition and development costs of development properties (December 31, 2023 - $80,231 and $59,682 respectively).
Other non-current assets include $42,047 of deposits related to items of property, plant and equipment at Terronera (December 31, 2023 - $20,952).
9. LOANS PAYABLE
| | | Debt Facility | | | Equipment financing | | | Total | |
| Currency | | USD | | | USD | | | | |
| Interest rate charged during the period | | 9.97% | | | 5.61% | | | | |
| Year of maturity | | 2030 | | | 2026 | | | | |
| | | | | | | | | | |
| Balance at December 31, 2022 | $ | - | | $ | 14,510 | | $ | 14,510 | |
| | | | | | | | | | |
| Finance cost | | - | | | 728 | | | 728 | |
| Repayments of principal | | - | | | (5,991 | ) | | (5,991 | ) |
| Repayments of finance costs | | - | | | (728 | ) | | (728 | ) |
| | | | | | | | | | |
| Balance at December 31, 2023 | $ | - | | $ | 8,519 | | $ | 8,519 | |
| | | | | | | | | | |
| Proceeds from drawdowns | | 60,000 | | | - | | | 60,000 | |
| Applied financing costs | | (4,138 | ) | | - | | | (4,138 | ) |
| Finance cost | | 1,613 | | | 202 | | | 1,815 | |
| Repayments of principal | | - | | | (2,352 | ) | | (2,352 | ) |
| | | | | | | | | | |
| Balance at June 30, 2024 | $ | 57,475 | | $ | 6,369 | | $ | 63,844 | |
| | | | | | | | | | |
| Less: Current portion of loans payable | $ | - | | $ | 3,395 | | $ | 3,395 | |
| Less: Accrued Interest | $ | 1,284 | | $ | - | | $ | 1,284 | |
| | | | | | | | | | |
| Balance: Non-current loans payable | $ | 56,191 | | $ | 2,974 | | $ | 59,165 | |
Debt Facility
On April 9, 2024, the Company drew the first tranche of the Debt Facility for the full balance of $60 million. The remaining $60 million as the second tranche remained fully committed and undrawn as at June 30, 2024. Subsequent to the period end, on July 15, 2024, the Company drew $15 million of the second tranche. As at the date of these interim financial statements, the remaining $45 million remains fully committed and undrawn.
As part of the Debt Facility agreement, the Company is maintaining a separate bank account used as a project cost overrun facility that can be used only for construction of the Terronera project. As of June 30, 2024, this account had a balance of $6,727 and is included in the cash and cash equivalents in the statement of financial position.
The Debt Facility is secured through corporate guarantees from the Company, certain of the Company's subsidiaries and a first ranking security interest over the Terronera project. The Debt Facility is subject to certain customary covenants including that at all times the corporate entity must maintain a cash balance in excess of $10,000 and the Reserve Tail Ratio must be in excess of 30%. Then at certain measurement dates, the following must be observed: Loan Life Coverage Ratio must be in excess of 1.3; Project Life Coverage Ratio must be in excess of 1.5; Historical Debt Service Coverage Ratio must be in excess of 1.25; Gross Leverage Ratio must be less than 3.5; and Interest Service Coverage Ratio must be in excess of 2.5. The definitions of capitalized terms used for the financial covenants are in the Debt Facility agreement. The Company was in compliance with the applicable covenants on June 30, 2024.
There are $4,138 deferred financing fees remaining presented as an asset in the statement of the financial position as of June 30, 2024, relating to the second tranche of Debt Facility.
Equipment financing
The equipment financing is secured by the underlying equipment purchased and is subject to various non-financial covenants and as at June 30, 2024 the Company was in compliance with these covenants. As at June 30, 2024, the net book value of equipment includes $12,757 (December 31, 2023 - $17,720) of equipment pledged as security for the equipment financing.
10. SHARE CAPITAL
(a) Common Shares
As of June 30, 2024, the Company had 245,865,663 common shares issued issuable and outstanding, with no par value (December 31, 2023 - 217,245,492). During the six months period ended June 30, 2024, the Company issued 27,540,971 common shares under the "At-The-Market" ("ATM") distributions equity facility (the "December 2023 ATM Facility") at an average price of $2.00 per share for gross proceeds of $55,151, less commission of $1,103 and recognized $440 of other transaction costs related to the ATM financing as share issuance costs, which have been presented net within share capital.
(b) Stock Options
| Expressed in Canadian dollars | | Six months ended
June 30,
2024 | | | Year ended
December 31,
2023 | |
| | |
Number of
options | | | Weighted
average
exercise price | | |
Number of
options | | | Weighted
average
exercise price | |
| Outstanding, beginning of period | | 3,488,291 | | $ | 4.24 | | | 3,899,630 | | $ | 4.09 | |
| Granted | | 1,969,000 | | $ | 2.92 | | | 1,079,000 | | $ | 4.12 | |
| Exercised | | (1,079,200 | ) | $ | 2.70 | | | (1,097,900 | ) | $ | 3.05 | |
| Expired and forfeited | | (532,400 | ) | $ | 3.23 | | | (392,439 | ) | $ | 5.76 | |
| Outstanding, end of period | | 3,845,691 | | $ | 4.14 | | | 3,488,291 | | $ | 4.24 | |
| Options exercisable at the end of the period | | 2,040,891 | | $ | 5.00 | | | 2,798,934 | | $ | 4.18 | |
Subsequent to June 30, 2024, an additional 153,400 common shares were issued on the exercise of 153,400 options, with a weighted average exercise price of CAN$3.08.
| Expressed in Canadian dollars | | | | | | |
| | | Options Outstanding | | | Options Exercisable | |
Exercise
Price | | Number
Outstanding
as at | | | Weighted Average
Remaining
Contractual Life | | | Weighted
Average
Exercise | | | Number
Exercisable
as at | | | Weighted
Average
Exercise | |
| Intervals | | June 30, 2024 | | | (Number of Years) | | | Price | | | June 30, 2024 | | | Price | |
| $2.00 - $2.99 | | 1,998,000 | | | 4.0 | | $ | 2.78 | | | 566,800 | | $ | 2.38 | |
| $4.00 - $4.99 | | 682,400 | | | 3.7 | | $ | 4.12 | | | 328,000 | | $ | 3.70 | |
| $5.00 - $5.99 | | 84,000 | | | 2.3 | | $ | 5.55 | | | 64,800 | | $ | 1.48 | |
| $6.00 - $6.99 | | 1,081,291 | | | 2.2 | | $ | 6.54 | | | 1,081,291 | | $ | 2.25 | |
| | | 3,845,691 | | | 3.4 | | $ | 4.14 | | | 2,040,891 | | $ | 2.49 | |
During the three and six months ended June 30, 2024, the Company recognized share-based compensation expense of $421 and $1,132 respectively (June 30, 2023 - $331 and $946 respectively) based on the fair value of the vested portion of options.
The weighted-average fair values of stock options granted have been estimated using the Black-Scholes Option Pricing Model with the following assumptions:
| | | Six months ended | |
| | | June 30,
2024 | | | June 30,
2023 | |
| Weighted-average fair value of options in CAN$ | | $1.38 | | | $2.21 | |
| Risk-free interest rate | | 3.75% | | | 3.84% | |
| Expected dividend yield | | 0% | | | 0% | |
| Expected stock price volatility | | 62% | | | 70% | |
| Expected options life in years | | 3.52 | | | 3.79 | |
(c) Share Units Plan
Performance Share Units
The Performance Share Units ("PSU"s) granted are subject to a performance payout multiplier between 0% and 200% based on the Company's total shareholder return at the end of a three-year period, relative to the total shareholder return of the Company's peer group.
| | | Six months ended | | | Year ended | |
| | | June 30,
2024 | | | December 31,
2023 | |
| | | Number of units | | | Number of units | |
| | | | | | | |
| Outstanding, beginning of period | | 878,000 | | | 1,158,000 | |
| Granted | | 635,000 | | | 471,000 | |
| Cancelled | | (274,000 | ) | | (140,000 | ) |
| Settled for shares | | - | | | (611,000 | ) |
| Outstanding, end of period | | 1,239,000 | | | 878,000 | |
Performance criteria are based on the Company's share price performance relative to a representative group of other mining companies. 200,000 PSUs vest on March 24, 2025, 384,000 PSUs vest on March 7, 2026, 595,000 PSUs vest on March 13, 2027 and 60,000 will vest once certain performance criteria are met.
During the three and six months ended June 30, 2024, the Company recognized share-based compensation expense of $323 and $763 respectively related to the PSUs (June 30, 2023 - $67 and $462 respectively).
Deferred share units (DSU's) - Equity Settled
The DSUs granted are vested immediately and are redeemable for shares at the time of a director's retirement.
| | | Six months ended | | | Year ended | |
| | | June 30,
2024 | | | December 31,
2023 | |
| | | Number of units | | | Number of units | |
| | | | | | | |
| Outstanding, beginning of period | | 330,078 | | | 104,596 | |
| Granted | | 212,798 | | | 225,482 | |
| Outstanding, end of period | | 542,876 | | | 330,078 | |
There were 212,798 DSUs granted during the six months ended June 30, 2024 (June 30, 2023 - 209,237) under the SUP. During the three and six months ended June 30, 2024, the Company recognized share-based compensation expense of $418 and $435 respectively related to the DSUs (June 30, 2023 - $16 and $632 respectively).
(d) Cash Settled Deferred Share Units (No further grants to be made)
The Company previously had a Deferred Share Unit plan whereby deferred share units were granted to independent directors of the Company in lieu of compensation in cash or share purchase options. These Deferred Share Units vested immediately and are redeemable for cash, based on the market value of the units at the time of a director's retirement. Upon adoption of the SUP plan in March 2021, no new cash-settled Deferred Share Units will be granted under this cash settled plan.
| Expressed in Canadian dollars | | Six months ended | | | Year ended | |
| | | June 30,
2024 | | | December 31,
2023 | |
| | | Number of
Units | | | Weighted Average
Grant Price | | | Number
of Units | | | Weighted Average
Grant Price | |
| | | | | | | | | | | | | |
| Outstanding, beginning of period | | 1,044,204 | | $ | 3.19 | | | 1,044,204 | | $ | 3.19 | |
| Redeemed | | - | | | - | | | - | | | - | |
| Outstanding, end of period | | 1,044,204 | | $ | 3.19 | | | 1,044,204 | | $ | 3.19 | |
| Fair value at period end | | 1,044,204 | | $ | 3.26 | | | 1,044,204 | | $ | 2.60 | |
During the three and six months ended June 30, 2024, the Company recognized a mark to market expense on cash-settled Deferred Share Units related to director's compensation , which is included in general and administrative salaries, wages and benefits, of $1,158 and $1,624 respectively (June 30, 2023 - a mark to market recovery of $994 and $341 respectively) based on the change in the fair value of the cash-settled Deferred Share Units granted in prior years. As of June 30, 2024, deferred share units outstanding have a fair market liability value of $3,672 (December 31, 2023 - $2,048) recognized in accounts payable and accrued liabilities.
(e) Share Appreciation Rights
As part of the Company's bonus program, the Company may grant share appreciation rights ("SARs") to its employees in Mexico and Chile. The SARs are subject to vesting conditions and, when exercised, constitute a cash bonus based on the value of the appreciation of the Company's common shares between the SARs grant date and the exercise date.
| | | Six months ended | | | Year ended | |
| | | June 30,
2024 | | | December 31,
2023 | |
| | | Number
of Units | | | Weighted Average
Grant Price | | | Number
of Units | | | Weighted Average
Grant Price | |
| | | | | | | | | | | | | |
| Outstanding, beginning of period | | 51,349 | | $ | 5.07 | | | 181,739 | | $ | 5.12 | |
| Cancelled | | - | | | - | | | (130,390 | ) | $ | 5.13 | |
| Outstanding, end of period | | 51,349 | | $ | 5.07 | | | 51,349 | | $ | 5.07 | |
| Exercisable at the end of the period | | 43,870 | | $ | 5.09 | | | 43,870 | | $ | 5.09 | |
During the three and six months ended June 30, 2024, the Company recognized an expense related to SARs, which is included in operation and exploration salaries, wages and benefits, of $nil and $1 respectively (June 30, 2023 - expense of $15 and $10 respectively) based on the change in the fair value of the SARs granted in prior years. As of June 30, 2024, SARs outstanding have a fair market liability value of $45 (December 31, 2023 - $43) recognized in accounts payable and accrued liabilities.
(f) Diluted Earnings per Share
| | | Three months ended | | | Six months ended | |
| | | June 30,
2024 | | | June 30,
2023 | | | June 30,
2024 | | | June 30,
2023 | |
Net earnings (loss)
| $ | (14,007 | ) | $ | (1,054 | ) | $ | (15,201 | ) | $ | 5,402 | |
| Basic weighted average number of shares outstanding | | 242,899,679 | | | 191,446,597 | | | 235,201,630 | | | 190,867,192 | |
| Effect of dilutive securities: | | | | | | | | | | | | |
| Stock options | | - | | | - | | | - | | | 752,706 | |
| Equity settled deferred share units | | - | | | - | | | - | | | 878,000 | |
| Performance share units | | - | | | - | | | - | | | 313,833 | |
| Diluted weighted average number of share outstanding | | 242,899,679 | | | 191,446,597 | | | 235,201,630 | | | 192,811,731 | |
As of June 30, 2024, there are 3,322,323 anti-dilutive stock options (June 30, 2023 - 2,900,185).
11. REVENUE
| | | Three months ended | | | Six months ended | |
| | | June 30,
2024 | | | June 30,
2023 | | | June 30,
2024 | | | June 30,
2023 | |
| | | | | | | | | | | | | |
| Silver sales | $ | 35,234 | | $ | 31,544 | | $ | 76,456 | | $ | 70,164 | |
| Gold sales | | 23,474 | | | 19,322 | | | 46,470 | | | 36,819 | |
| Less: smelting and refining costs | | (448 | ) | | (795 | ) | | (941 | ) | | (1,451 | ) |
| Revenue | $ | 58,260 | | $ | 50,071 | | $ | 121,985 | | $ | 105,532 | |
Changes in fair value from provisional pricing in the period are included in silver and gold sales.
| | | Three months ended | | | Six months ended | |
| | | June 30,
2024 | | | June 30,
2023 | | | June 30,
2024 | | | June 30,
2023 | |
| Revenue by product | | | | | | | | | | | | |
| Concentrate sales | $ | 17,740 | | $ | 13,960 | | $ | 33,095 | | $ | 25,745 | |
| Provisional pricing adjustments | | 83 | | | (342 | ) | | (628 | ) | | (589 | ) |
| Total revenue from concentrate sales | | 17,823 | | | 13,618 | | | 32,467 | | | 25,156 | |
| Refined metal sales | | 40,437 | | | 36,453 | | | 89,518 | | | 80,376 | |
| Total revenue | $ | 58,260 | | $ | 50,071 | | $ | 121,985 | | $ | 105,532 | |
Provisional pricing adjustments on sales of concentrate consist of final pricing adjustments made on the finalization of the sales contract. The Company's sales contracts are provisionally priced with provisional pricing periods lasting typically one to three months with provisional pricing adjustments recorded to revenue as market prices vary.
12. EXPLORATION, EVALUATION AND DEVELOPMENT
| | | Three months ended | | | Six months ended | |
| | | June 30,
2024 | | | June 30,
2023 | | | June 30,
2024 | | | June 30,
2023 | |
| | | | | | | | | | | | | |
| Depreciation | $ | 188 | | $ | 317 | | $ | 347 | | $ | 595 | |
| Share-based compensation | | 127 | | | 112 | | | 278 | | | 243 | |
| Exploration salaries, wages and benefits | | 637 | | | 991 | | | 1,297 | | | 1,420 | |
| Direct exploration expenditures | | 1,828 | | | 1,508 | | | 3,458 | | | 3,054 | |
| Evaluation and development salaries, wages and benefit | | 705 | | | 561 | | | 1,459 | | | 1,006 | |
| Direct evaluation and development expenditures | | 805 | | | 870 | | | 1,721 | | | 2,205 | |
| | $ | 4,290 | | $ | 4,359 | | $ | 8,560 | | $ | 8,523 | |
13. GENERAL AND ADMINISTRATIVE
| | | Three months ended | | | Six months ended | |
| | | June 30,
2024 | | | June 30,
2023 | | | June 30,
2024 | | | June 30,
2023 | |
| | | | | | | | | | | | | |
| Depreciation | $ | 106 | | $ | 54 | | $ | 205 | | $ | 116 | |
| Share-based compensation | | 961 | | | 599 | | | 1,901 | | | 1,960 | |
| Salaries, wages and benefits | | 979 | | | 993 | | | 2,161 | | | 2,160 | |
| Directors' DSU expense (recovery) | | 1,159 | | | (994 | ) | | 1,624 | | | (341 | ) |
| Direct general and administrative | | 1,035 | | | 1,706 | | | 2,393 | | | 3,380 | |
| | $ | 4,240 | | $ | 2,358 | | $ | 8,284 | | $ | 7,275 | |
14. SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS
| | | Three months ended | | | Six months ended | |
| | | June 30,
2024 | | | June 30,
2023 | | | June 30,
2024 | | | June 30,
2023 | |
| Net changes in non-cash working capital: | | | | | | | | | | | | |
| Accounts and other receivables | $ | 3,711 | | $ | (4,597 | ) | $ | (5,663 | ) | $ | (8,972 | ) |
| Income tax receivable | | 1,565 | | | 1,695 | | | 1,861 | | | 3,858 | |
| Inventories | | (2,249 | ) | | (6,200 | ) | | 3,158 | | | (9,293 | ) |
| Prepaids | | 455 | | | (367 | ) | | 1,209 | | | (1,749 | ) |
| Accounts payable and accrued liabilities | | (327 | ) | | 251 | | | (3,190 | ) | | (4,025 | ) |
| Income taxes payable | | 1,146 | | | 2,612 | | | 1,275 | | | 673 | |
| | $ | 4,301 | | $ | (6,606 | ) | $ | (1,350 | ) | $ | (19,508 | ) |
| | | | | | | | | | | | | |
| Non-cash financing and investing activities: | | | | | | | | | | | | |
| Reclamation included in mineral properties, | | | | | | | | | | | | |
| plant and equipment | $ | (448 | ) | $ | (209 | ) | $ | (550 | ) | $ | (645 | ) |
| Fair value of exercised options allocated to share capital | $ | (1,023 | ) | $ | (359 | ) | $ | (1,023 | ) | $ | (1,305 | ) |
| Fair value of PSUs allocated to share capital | $ | - | | $ | - | | $ | - | | $ | (405 | ) |
| | | | | | | | | | | | | |
| Other cash disbursements: | | | | | | | | | | | | |
| Income taxes paid | $ | 50 | | $ | 670 | | $ | 2,584 | | $ | 2,529 | |
| Special mining duty paid | $ | - | | $ | 139 | | $ | 2,574 | | $ | 2,654 | |
15. SEGMENT DISCLOSURES
The Company's operating segments are based on internal management reports that are reviewed by the Company's executives (the chief operating decision makers) in assessing performance. The Company has two operating mining segments which are located in Mexico, Guanaceví and Bolañitos. The Company has one development project in Mexico, Terronera, as well as Exploration and Corporate segments. The Exploration segment consists of projects in the exploration and evaluation phases in Mexico, Chile and the USA. Exploration projects that are in the local district surrounding a mine are included in the mine's segments.
| Three months ended June 30 | | | | | Revenue | | | Cost of sales
excluding
depreciation | | | Depreciation | | | Mine operating
earnings | | | Net earnings and
comprehensive
earnings | |
| | | | | | | | | | | | | | | | | | | |
| Guanaceví | | 2024 | | $ | 40,436 | | $ | 28,617 | | $ | 5,965 | | $ | 5,854 | | $ | 4,165 | |
| | | 2023 | | | 36,452 | | | 20,410 | | | 3,381 | | | 12,660 | | | 7,677 | |
| Bolañitos | | 2024 | | | 17,824 | | | 10,808 | | | 2,674 | | | 4,342 | | | 3,928 | |
| | | 2023 | | | 13,619 | | | 10,523 | | | 3,215 | | | (118 | ) | | (343 | ) |
| Terronera | | 2024 | | | - | | | - | | | - | | | - | | | (1,511 | ) |
| | | 2023 | | | - | | | - | | | - | | | - | | | (1,431 | ) |
| Exploration | | 2024 | | | - | | | - | | | - | | | - | | | (2,780 | ) |
| | | 2023 | | | - | | | - | | | - | | | - | | | (3,363 | ) |
| Corporate | | 2024 | | | - | | | - | | | - | | | - | | | (17,809 | ) |
| | | 2023 | | | - | | | - | | | - | | | - | | | (3,594 | ) |
| Consolidated | | 2024 | | $ | 58,260 | | $ | 39,425 | | $ | 8,639 | | $ | 10,196 | | $ | (14,007 | ) |
| | | 2023 | | | 50,071 | | | 30,933 | | | 6,596 | | | 12,542 | | | (1,054 | ) |
The Exploration segment included $207 of costs incurred in Chile for the three months ended June 30, 2024 (June 30, 2023 - $801) and $18 of costs incurred in USA (June 30, 2023 - $16).
| Six months ended June 30 | | | | | Revenue | | | Cost of sales
excluding
depreciation | | | Depreciation | | | Mine operating
earnings | | | Net earnings and
comprehensive
earnings | |
| | | | | | | | | | | | | | | | | | | |
| Guanaceví | | 2024 | | $ | 89,518 | | $ | 61,897 | | $ | 11,780 | | $ | 15,841 | | $ | 8,448 | |
| | | 2023 | | | 80,376 | | | 45,092 | | | 6,855 | | | 28,429 | | | 17,431 | |
| Bolañitos | | 2024 | | | 32,467 | | | 20,720 | | | 5,736 | | | 6,011 | | | 5,255 | |
| | | 2023 | | | 25,156 | | | 19,024 | | | 5,994 | | | 138 | | | (193 | ) |
| Terronera | | 2024 | | | - | | | - | | | - | | | - | | | (3,181 | ) |
| | | 2023 | | | - | | | - | | | - | | | - | | | (3,211 | ) |
| Exploration | | 2024 | | | - | | | - | | | - | | | - | | | (5,380 | ) |
| | | 2023 | | | - | | | - | | | - | | | - | | | (5,747 | ) |
| Corporate | | 2024 | | | - | | | - | | | - | | | - | | | (20,343 | ) |
| | | 2023 | | | - | | | - | | | - | | | - | | | (2,878 | ) |
| Consolidated | | 2024 | | $ | 121,985 | | $ | 82,617 | | $ | 17,516 | | $ | 21,852 | | $ | (15,201 | ) |
| | | 2023 | | | 105,532 | | | 64,116 | | | 12,849 | | | 28,567 | | | 5,402 | |
| | | | | | Total Assets | | | Total Liabilities | | | Capital expenditures | |
| | | | | | | | | | | | | |
| Guanaceví | | June 30, 2024 | | $ | 120,198 | | $ | 44,720 | | $ | 9,961 | |
| | | Dec 31, 2023 | | | 125,456 | | | 44,916 | | | 24,631 | |
| Bolañitos | | June 30, 2024 | | | 47,217 | | | 9,057 | | | 4,465 | |
| | | Dec 31, 2023 | | | 44,205 | | | 11,200 | | | 10,709 | |
| Terronera | | June 30, 2024 | | | 290,335 | | | 91,981 | | | 73,858 | |
| | | Dec 31, 2023 | | | 186,860 | | | 23,604 | | | 62,495 | |
| Exploration | | June 30, 2024 | | | 87,685 | | | 465 | | | 330 | |
| | | Dec 31, 2023 | | | 83,312 | | | 1,319 | | | 1,297 | |
| Corporate | | June 30, 2024 | | | 37,394 | | | 7,379 | | | - | |
| | | Dec 31, 2023 | | | 34,974 | | | 7,427 | | | 276 | |
| Consolidated | | June 30, 2024 | | $ | 582,829 | | $ | 153,602 | | $ | 88,614 | |
| | | Dec 31, 2023 | | | 474,807 | | | 88,466 | | | 99,408 | |
The Exploration segment included $635 of costs incurred in Chile for the six months ended June 30, 2024 (June 30, 2023 - $496) and $23 of costs incurred in USA (June 30, 2023 - $48).
16. COMMITMENTS & CONTINGENCIES
Commitments
As of June 30, 2024, the Company has $35,830 committed for capital equipment purchases.
Contingencies
Due to the nature of the Company's activities, various legal and tax matters are outstanding from time to time. The Company is routinely subject to audit by tax authorities in the countries in which it operates and has received a number of tax assessments in various locations, which are currently at various stages of progress with the relevant authorities. The outcomes of these audits and assessments are uncertain however, the Company is confident of its position on the various matters under review.
17. FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS
In connection with the Debt Facility (Note 9), on March 28, 2024, the Company entered into gold forward swap contracts to hedge against the fluctuation in gold prices. The gold forward swap contracts settle between January 2025 and March 2027, for 68,000 ounces of gold at $2,325 per ounce. The Company is also required to hedge a portion of the estimated remaining capital expenditures incurred in Mexican Pesos. On April 3, 2024, the Company entered into Mexican Peso forward purchase contracts for a total of approximately $45,000 over the construction period from April 2024 to December 2024 with a base price of 16.56 pesos per US dollar. As of June 30, 2024, of the Mexican Peso forward contracts originally established, $24,493 remains outstanding, with $20,507 executed during the three months ended June 30, 2024.
As at June 30, 2024, the Company has revalued the forward contracts to their respective fair values and as a result recorded a loss of $7,160 on the gold swap contracts and a loss of $2,093 on the Mexican Peso contracts in the condensed consolidated interim statement of earnings and loss for the period. As of June 30, 2024, the Company carries the combined derivative liability of $9,253 in the statement of financial position.
(a) Financial assets and liabilities
As at June 30, 2024, the carrying and fair values of the Company's financial instruments by category are as follows:
| | | Fair value
through profit or
loss
$ | | |
Amortized
cost
$ | | |
Carrying
value
$ | | |
Fair value
$ | |
| | | | | | | | | | | | | |
| Financial assets: | | | | | | | | | | | | |
| Cash and cash equivalents | | - | | | 68,097 | | | 68,097 | | | 68,097 | |
| Other investments | | 558 | | | - | | | 558 | | | 558 | |
| Accounts and other receivables | | 6,838 | | | 555 | | | 7,393 | | | 7,393 | |
| Loans receivable | | - | | | 2,758 | | | 2,758 | | | 2,758 | |
| Total financial assets | | 7,396 | | | 71,410 | | | 78,806 | | | 78,806 | |
| | | | | | | | | | | | | |
| Financial liabilities: | | | | | | | | | | | | |
| Accounts payable and accrued liabilites | | 3,716 | | | 37,637 | | | 41,353 | | | 41,353 | |
| Derivative liability | | 9,253 | | | - | | | 9,253 | | | 9,253 | |
| Loans payable | | - | | | 62,560 | | | 62,560 | | | 62,560 | |
| Total financial liabilities | | 12,969 | | | 100,197 | | | 113,166 | | | 113,166 | |
(b) Fair value hierarchy
Assets and liabilities as at June 30, 2024 measured at fair value on a recurring basis include:
| | | Level 1
$ | | | Level 2
$ | | | Level 3
$ | | | Total
$ | |
| | | | | | | | | | | | | |
| Financial assets: | | | | | | | | | | | | |
| Accounts and other receivables | | - | | | 6,838 | | | - | | | 6,838 | |
| Other investments | | 516 | | | - | | | 42 | | | 558 | |
| Total financial assets | | 516 | | | 6,838 | | | 42 | | | 7,396 | |
| | | | | | | | | | | | | |
| Financial liabilities: | | | | | | | | | | | | |
| Cash-Settled Deferred Share Units | | 3,671 | | | - | | | - | | | 3,671 | |
| Share appreciation rights | | - | | | 45 | | | - | | | 45 | |
| Derivative liability | | - | | | 9,253 | | | - | | | 9,253 | |
| Total financial liabilities | | 3,671 | | | 9,298 | | | - | | | 12,969 | |
The fair values of derivative liabilities are measured using Level 2 inputs. The fair values of the Company’s Peso forward purchase contracts are based on forward foreign exchange rates and the fair values of the Company’s gold swap contracts are based on forward metal prices.
| HEAD OFFICE | Suite #1130, 609 Granville Street |
| Vancouver, BC, Canada V7Y 1G5 |
| | Telephone: (604) 685-9775 |
| | 1-877-685-9775 |
| | Website: www.edrsilver.com |
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| DIRECTORS | Margaret Beck |
| | Ricardo Campoy |
| | Daniel Dickson |
| | Amy Jacobsen |
| | Rex McLennan |
| | Kenneth Pickering |
| | Mario Szotlender |
| | Angela Johnson |
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| OFFICERS | Daniel Dickson – Chief Executive Officer |
| | Donald Gray – Chief Operating Officer |
| | Elizabeth Senez – Chief Financial Officer |
| | Gregory Blaylock – Vice President, Operations |
| | Luis Castro – Senior Vice-President, Exploration |
| | Dale Mah – Vice-President, Corporate Development |
| | Bernard Poznanski – Corporate Secretary |
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| REGISTRAR AND | Computershare Trust Company of Canada |
| TRANSFER AGENT | 3rd Floor – 510 Burrard Street |
| | Vancouver, BC, V6C 3B9 |
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| AUDITORS | KPMG LLP |
| | 777 Dunsmuir Street |
| | Vancouver, BC, V7Y 1K3 |
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| SOLICITORS | Koffman Kalef LLP |
| | 19th Floor – 885 West Georgia Street |
| | Vancouver, BC, V6C 3H4 |
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| SHARES LISTED | Toronto Stock Exchange |
| | Trading Symbol – EDR |
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| | New York Stock Exchange |
| | Trading Symbol – EXK |
