Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2017shares | |
Document And Entity Information | |
Entity Registrant Name | Americas Silver Corp |
Entity Central Index Key | 1,286,973 |
Document Type | 40-F |
Document Period End Date | Dec. 31, 2017 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Is Entity's Reporting Status Current? | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 41,496,950 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2,017 |
Consolidated statements of fina
Consolidated statements of financial position - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash and cash equivalents | $ 9,325 | $ 24,055 |
Trade and other receivables (Note 6) | 6,631 | 4,002 |
Inventories (Note 7) | 9,366 | 6,618 |
Prepaid expenses | 869 | 1,385 |
Available-for-sale investment | 503 | |
Current assets | 26,191 | 36,563 |
Non-current assets | ||
Restricted cash | 331 | 151 |
Long-term investments | 4 | 28 |
Property, plant and equipment (Note 8) | 100,301 | 80,548 |
Total assets | 126,827 | 117,290 |
Current liabilities | ||
Trade and other payables | 10,393 | 8,727 |
Credit facilities (Note 9) | 7,758 | |
Pre-payment facility (Note 10) | 4,000 | |
Current liabilities | 14,393 | 16,485 |
Non-current liabilities | ||
Other long-term liabilities | 564 | 882 |
Pre-payment facility (Note 10) | 11,000 | |
Post-employment benefit obligations (Note 11) | 8,618 | 8,116 |
Decommissioning provision (Note 12) | 3,948 | 3,829 |
Deferred tax liabilities (Note 17) | 246 | 834 |
Total liabilities | 38,769 | 30,146 |
Equity | ||
Share capital (Note 13) | 207,012 | 202,191 |
Equity reserve | 34,760 | 34,400 |
Foreign currency translation reserve | 6,284 | 6,454 |
Changes in available-for-sale investment | 237 | |
Deficit | (159,998) | (156,138) |
Total equity | 88,058 | 87,144 |
Total liabilities and equity | $ 126,827 | $ 117,290 |
Consolidated statements of loss
Consolidated statements of loss and comprehensive loss - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Profit or loss [abstract] | ||
Revenue | $ 54,280 | $ 58,866 |
Cost of sales (Note 15) | (40,038) | (46,145) |
Depletion and amortization (Note 8) | (6,709) | (7,388) |
Care, maintenance and restructuring costs | (701) | (993) |
Corporate general and administrative (Note 16) | (6,651) | (5,355) |
Exploration costs | (2,726) | (1,681) |
Accretion on decommissioning provision (Note 12) | (185) | (152) |
Interest and financing expense | (723) | (2,337) |
Foreign exchange gain (loss) | (225) | 340 |
Loss on disposal of assets (Note 8) | (20) | |
Loss on available-for-sale investment | (11) | (132) |
Write-down of equipment (Note 8) | (204) | |
Loss before income taxes | (3,893) | (4,997) |
Income tax recovery (expense) (Note 17) | 427 | (210) |
Net loss | (3,466) | (5,207) |
Items that will not be reclassified to net loss | ||
Actuarial gain (loss) on post-employment benefit obligations | (394) | 1,607 |
Items that may be reclassified subsequently to net loss | ||
Foreign currency translation reserve | (170) | (1,334) |
Change in fair value of available-for-sale securities | (237) | 237 |
Other comprehensive income (loss) | (801) | 510 |
Comprehensive loss | $ (4,267) | $ (4,697) |
Loss per share | ||
Basic and diluted | $ (0.09) | $ (0.15) |
Weighted average number of common shares outstanding | ||
Basic and diluted (Note 14) | 40,194,660 | 34,526,435 |
Consolidated statements of chan
Consolidated statements of changes in equity - USD ($) shares in Thousands, $ in Thousands | Share capital [Member] | Equity reserve [Member] | Foreign currency translation reserve [Member] | Changes in fair value of available-for-sale investment [Member] | Deficit [Member] | Total |
Balance at Dec. 31, 2015 | $ 181,143 | $ 28,452 | $ 7,788 | $ (152,538) | $ 64,845 | |
Balance, shares at Dec. 31, 2015 | 28,935 | |||||
Net loss for the year | (5,207) | (5,207) | ||||
Other comprehensive income (loss) for the year | (1,334) | 237 | 1,607 | 510 | ||
Share-based payments | 585 | 585 | ||||
Shares and warrants issued on private placement | $ 17,889 | 5,161 | 23,050 | |||
Shares and warrants issued on private placement, shares | 8,766 | |||||
Proceeds from exercise of options and warrants | $ 3,159 | (1,149) | 2,010 | |||
Proceeds from exercise of options and warrants, shares | 1,839 | |||||
Warrants issued and amended | 1,351 | 1,351 | ||||
Balance at Dec. 31, 2016 | $ 202,191 | 34,400 | 6,454 | 237 | (156,138) | 87,144 |
Balance, shares at Dec. 31, 2016 | 39,540 | |||||
Net loss for the year | (3,466) | (3,466) | ||||
Other comprehensive income (loss) for the year | (170) | (237) | (394) | (801) | ||
Share-based payments | 1,956 | 1,956 | ||||
Proceeds from exercise of options and warrants | $ 4,821 | (1,596) | 3,225 | |||
Proceeds from exercise of options and warrants, shares | 1,957 | |||||
Balance at Dec. 31, 2017 | $ 207,012 | $ 34,760 | $ 6,284 | $ (159,998) | $ 88,058 | |
Balance, shares at Dec. 31, 2017 | 41,497 |
Consolidated statements of cash
Consolidated statements of cash flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Operating activities | ||
Net loss for the year | $ (3,466) | $ (5,207) |
Adjustments for the following non-cash items: | ||
Depletion and amortization | 6,709 | 7,388 |
Deferred income tax expense (recovery) | (588) | 210 |
Accretion and decommissioning costs | 185 | 152 |
Share-based payments | 1,930 | 1,237 |
Unrealized loss (gain) on long-term investments | 24 | (17) |
Provision on other long-term liabilities | 185 | 143 |
Deferred costs on credit facilities | 173 | 1,178 |
Net charges on post-employment benefit obligations | 108 | 433 |
Loss on disposal of assets | 20 | |
Loss on available-for-sale investment | 8 | 132 |
Write-down of equipment | 204 | |
Total adjustments | 5,472 | 5,669 |
Changes in non-cash working capital items: | ||
Trade and other receivables | (2,629) | 542 |
Inventories | (2,748) | 2,172 |
Prepaid expenses | 336 | (648) |
Trade and other payables | 1,147 | (2,348) |
Net cash generated from operating activities | 1,578 | 5,387 |
Investing activities | ||
Expenditures on property, plant and equipment | (7,176) | (4,660) |
Net development costs on San Rafael | (13,435) | (2,777) |
Net development costs on EI Cajon | 1,054 | (535) |
Purchase of San Felipe property option | (7,108) | |
Net cash used in investing activities | (26,665) | (7,972) |
Financing activities | ||
Sale of available-for-sale investment | 274 | 89 |
Financing from (repayments to ) credit facilities | (8,005) | 600 |
Financing from pre-payment facility | 15,000 | |
Proceeds from private placement | 23,787 | |
Proceeds from exercise of options and warrants | 3,225 | 2,010 |
Net cash generated from financing activities | 10,494 | 26,486 |
Effect of foreign exchange rate changes on cash | (137) | (1,165) |
Increase (decrease) in cash and cash equivalents | (14,730) | 22,736 |
Cash and cash equivalents, beginning of year | 24,055 | 1,319 |
Cash and cash equivalents, end of year | 9,325 | 24,055 |
Interest paid during the year | $ 1,165 | $ 1,122 |
Consolidated statements of cas6
Consolidated statements of cash flows (Supplemental Disclosures) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Cash and cash equivalents consist of: | ||
Cash | $ 9,325 | $ 24,055 |
Term deposits | ||
Cash and cash equivalents | $ 9,325 | $ 24,055 |
Corporate information
Corporate information | 12 Months Ended |
Dec. 31, 2017 | |
Corporate information [abstract] | |
Corporate information | 1. Corporate information Americas Silver Corporation (the “Company" or "Americas Silver") was incorporated under the Canada Business Corporations Act on May 12, 1998 and conducts mining exploration, development and production in the Americas. The address of the Company’s registered office is 145 King Street West, Suite 2870, Toronto, Ontario, Canada, M5H 1J8. The Company’s common shares are listed on the Toronto Stock Exchange under the symbol “USA” and on the New York American Stock Exchange under the symbol “USAS”. The consolidated financial statements of the Company for the year ended December 31, 2017 were approved and authorized for issue by the Board of Directors of the Company on March 5, 2018. |
Basis of presentation
Basis of presentation | 12 Months Ended |
Dec. 31, 2017 | |
Basis of presentation [abstract] | |
Basis of presentation | 2. Basis of presentation The Company prepares its consolidated financial statements in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and IFRS Interpretations Committee (“IFRIC”) which the Canadian Accounting Standards Board has approved for incorporation into Part I of the Chartered Professional Accountants Canada Handbook. These consolidated financial statements have been prepared under the historical cost method, except for certain financial instruments measured at fair value. The Company has consistently applied the accounting policies used in preparation of these consolidated financial statements throughout all the periods presented. Significant accounting judgments and estimates used by management in the preparation of these consolidated financial statements are presented in note 4. |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2017 | |
Summary of significant accounting policies [abstract] | |
Summary of significant accounting policies | 3. Summary of significant accounting policies The significant accounting policies used in the preparation of these consolidated financial statements are as follows: a. Consolidation These consolidated financial statements incorporate the financial statements of the Company and the entities controlled by the Company (its subsidiaries, including special purpose entities). Control exists when the Company has the power, directly or indirectly, to govern the financial and operating policies of an entity so as to obtain benefits from its activities. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. All intercompany transactions and balances, income and expenses have been eliminated. The Company applies the acquisition method to account for business combinations. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The Company elects on an acquisition-by-acquisition basis whether to measure non-controlling interest at its fair value, or at its proportionate share of the recognized amount of identifiable net assets. Acquisition-related costs are expensed as incurred. Goodwill is initially measured as the excess of the aggregate of the consideration transferred and the fair value of non-controlling interest over the net identifiable assets acquired and liabilities assumed. If this consideration is negative, a bargain purchase gain is recognized immediately in profit or loss. Special Purpose Entities (“SPE’s”) as defined by the IASB in SIC 12 Consolidation–Special Purpose Entities b. Segment reporting An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Company’s other components. Determination of operating segments are based on the reports reviewed by the chief operating decision makers that are used to make strategic decisions about resources to be allocated to the segment and performance assessment, and for which discrete financial information is available. Unallocated items not directly attributable to a segment comprise mainly of corporate assets and head office expenses. c. Presentation currency and functional currency The Company’s presentation currency is the U.S. dollar (“USD”). The functional currency of the Company’s Canadian subsidiaries is the Canadian dollar (“CAD”), and the functional currency of its U.S., Mexican and British Virgin Island’s subsidiaries and SPE’s is the USD. The consolidated financial statements of the Company are translated into the presentation currency. Assets and liabilities have been translated using the exchange rate at period end, and income, expenses and cash flow items are translated using the rate that approximates the exchange rates at the dates of the transactions (the average rate for the period). All resulting exchange differences are recorded in the foreign currency translation reserve. d. Foreign currency translations e. Revenue recognition The following specific conditions must be met before revenue is recognized: · the title, specific risks and rewards of ownership have been transferred to the purchaser; · the Company does not retain continuing managerial involvement to the degree usually associated with ownership or effective control over the concentrate sold; · the amount of revenue and costs can be measured reliably; and · it is probable that the economic benefits associated with the transaction will flow to the Company. The Company’s sales of concentrates are made under provisional pricing arrangements where the final sale prices are determined by quoted market prices in a period subsequent to the date of sale. In these circumstances, revenue from sales is recorded at the time of sale based on forward prices for the expected date of final settlement. Subsequent variations in prices and metal quantities are recognized as revenue adjustments as they occur. Revenue is recognized net of treatment and selling costs if payment of those amounts is enforced at the time of sale. f. Defined benefit plans The cost of defined benefit plans is determined using the projected unit credit method. The related pension liability recognized in the consolidated statement of financial position is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. Actuarial valuations for defined benefit plans are carried out annually. The discount rate applied in arriving at the present value of the pension liability represents the yield on high quality corporate bonds denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating the terms of the related pension liability. Actuarial gains and losses arise from the difference between the actual long-term rate of return on plan assets for a period and the expected long-term rate of return on plan assets for that period, or from changes in actuarial assumptions used to determine the accrued benefit obligation. Actuarial gains and losses arising in the year are recognized in full in the period in which they occur, in other comprehensive income (loss) and retained earnings without recycling to the consolidated statement of loss and comprehensive loss in subsequent periods. Current service cost, the recognized element of any past service cost, interest expense arising on the pension liability and the expected return on plan assets are recognized in the same line items in the consolidated statement of loss and comprehensive loss as the related compensation cost. The values attributed to plan liabilities are assessed in accordance with the advice of independent qualified actuaries. Service costs arising from plan amendments are recognized immediately. g. Share-based payments The Company’s stock option plan allows its employees (including directors and officers) and non-employees to acquire shares of the Company. Accordingly, the fair value of the option is either charged to operations or capitalized to exploration or development expenditures, depending on the accounting for the optionee’s other compensation, with a corresponding increase in equity reserve. The costs of equity-settled transactions with employees are measured by reference to the fair value at the date on which they are granted using the Black-Scholes Option Pricing Model. The costs of equity-settled transactions are recognized, together with a corresponding increase in equity reserve, over the period in which the performance and/or service conditions are fulfilled, ending on the date on which the relevant employees become fully entitled to the award (the “vesting date”). The cumulative expense recognized for equity-settled transactions at each reporting date up to the vesting date reflects the Company’s best estimate of the number of equity instruments that will ultimately vest. The charge or credit for a period represents the movement in cumulative expense recognized as at the beginning and end of that period and the corresponding amount is represented in equity reserve. No expense is recognized for awards that do not ultimately vest. Where the terms of an equity-settled award are modified, the minimum expense recognized is the expense as if the terms had not been modified. An additional expense is recognized for any modification which increases the total fair value of the share-based payment arrangement, or is otherwise beneficial to the employee as measured at the date of modification. h. Income taxes Income tax comprises of current and deferred tax. Income tax is recognized in the consolidated statement of loss and comprehensive loss except to the extent that it relates to items recognized directly in other comprehensive income (loss) or directly in equity, in which case the income tax is also recognized directly in other comprehensive income (loss) or equity, respectively. The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in the countries where the Company’s subsidiaries operate and generate taxable profit. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities. Deferred income tax is recognized in respect of temporary differences between the carrying amount of assets and liabilities in the consolidated statement of financial position and the corresponding tax bases used in the computation of taxable profit. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantively enacted at the consolidated statement of financial position date and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled. Deferred income tax assets are recognized for all deductible temporary differences, carry-forward of unused tax credits and unused tax losses to the extent it is probable future taxable profits will be available against which they can be utilized. The Company did not recognize any deferred income taxes relating to its investments in subsidiaries. Deferred tax assets and liabilities are offset where they relate to income taxes levied by the same taxation authority and the Company has the legal right and intent to offset. i. Earnings/loss per share Basic earnings/loss per share is calculated by dividing the net earnings/loss for the period attributable to equity owners of the Company by the weighted average number of common shares outstanding during the period. Diluted earnings/loss per share is calculated by adjusting the weighted average number of common shares outstanding for dilutive instruments. The number of shares included with respect to options, warrants and similar instruments is computed using the treasury stock method. The treasury stock method, which assumes that outstanding stock options and warrants with an average exercise price below the market price of the underlying shares, are exercised and the assumed proceeds are used to repurchase common shares of the Company at the average market price of the common shares for the period. The Company’s potentially dilutive common shares comprise stock options granted to employees, and warrants. j. Comprehensive income (loss) Comprehensive income (loss) is the change in the Company’s net assets that results from transactions, events and circumstances from sources other than the Company’s shareholders and includes items that would not normally be included in net earnings such as foreign currency gains or losses related to the Company’s net investment in foreign operations and unrealized gains or losses on available-for-sale securities net of tax. The Company’s comprehensive income (loss), components of other comprehensive income and cumulative translation adjustments are presented in the consolidated statements of comprehensive income (loss) and the consolidated statements of changes in equity. k. Inventories Concentrates, ore stockpile, and spare parts and supplies are valued at the lower of cost and estimated net realizable value. Cost for concentrates and ore stockpile includes all direct costs incurred in production including direct labour and materials, freight, depreciation and amortization and directly attributable overhead costs determined on a weighted average basis for the Mexican operations and first in, first out method for the U.S. operations. Cost for spare parts and supplies are determined using the first in, first out method. Net realizable value is calculated as the estimated price at the time of sale based on prevailing and future metal prices less estimated future production costs to convert inventories into saleable form. Any write-downs of inventory to net realizable value are recorded as cost of sales. If there is a subsequent increase in the value of inventories, the previous write-downs to net realizable value are reversed to the extent that the related inventory has not been sold. Ore stockpile represents ore that has been extracted from the mine and is available for further processing. Costs added to ore stockpile are valued based on current mining cost per tonne incurred up to the point of stockpiling the ore and are removed at the average cost per tonne. Ore stockpile is verified by periodic surveys and physical counts. Materials and supplies inventory are valued at the lower of cost and net realizable value, where cost is determined using the first-in-first-out method. Any provision for obsolescence is determined by reference to specific items of stock. A regular review is undertaken to determine the extent of any provision for obsolescence by comparing those items to their net realizable value. If carrying value exceeds net realizable value, a write-down is recognized. l. Investments An associate is an entity over which the Company has significant influence and that is neither a subsidiary nor an interest in a joint venture. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. Investments in companies over which the Company exercises neither control nor significant influence and are designated as available-for sale financial instruments are recorded at fair value. Unrealized gains and losses on available-for-sale financial instruments are recognized in other comprehensive income (loss), unless the decrease in value is significant or prolonged, in which case, the loss is recorded in the statements of loss and comprehensive loss. m. Property, plant and equipment (i) Producing mining interests Producing mining interests are carried at cost less accumulated depletion and amortization and accumulated impairment losses. Following the completion of commissioning, the costs related to the mining interests are depleted and charged to operations on the unit of production method as a proportion of estimated recoverable mineral reserves. Completion of the commissioning is deemed to have occurred when major mine and processing plant components are completed, operating results are being achieved consistently for a period of time and that there are indicators that these operational results, including mill capacity and recovery, will be sustainable in the future. Construction in progress is not depreciated until the assets are ready for their intended use. (ii) Non-producing mining interests The Company follows the method of accounting for its non-producing mining interests whereby all costs, net of incidental revenues, relating to the acquisition, exploration and development are deferred and capitalized by property until the property to which they directly relate is placed into production, sold, discontinued or subject to a condition of impairment. In the event that a mining interest is placed into production, capitalization of costs ceases, the costs are transferred to producing mining interests and the mining interest is depleted on a unit of production basis. The recoverability of amounts is dependent upon the discovery of economically recoverable mineral reserves, the ability of the Company to finance the development of the properties, and on the future profitable production or proceeds from the disposition thereof. (iii) Plant and equipment Property, plant and equipment are carried at cost less accumulated depreciation and accumulated impairment losses. When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate assets (major components) of property, plant and equipment. The cost of replacing a part of an item of property, plant and equipment is recognized in the carrying amount of the item if it is probable that the future economic benefits embodied within that part will flow to the Company, and its cost can be measured reliably. The carrying amount of the replaced part is derecognized. Repairs and maintenance are charged to the consolidated statement of loss and comprehensive loss during the period in which they are incurred. Depreciation is recorded over the estimated useful life of the asset as follows: • Mining interests – unit of production based upon estimated proven and probable reserves • Plant and equipment – 3 – 30 years over straight line basis • Corporate office equipment – 3 – 10 years over straight line basis Residual values, method of amortization and useful lives of the assets are reviewed annually and adjusted if appropriate. (iv) Impairment of mining interests The Company reviews and evaluates the carrying values of its tangible and intangible assets to determine whether there is an indication of impairment. For exploration and evaluation assets, indication includes but is not limited to expiration of the right to explore, substantive expenditure in the specific area is neither budgeted nor planned, and if the entity has decided to discontinue exploration activity in the specific area. When the carrying value of assets exceeds the recoverable amount, the carrying value of the assets is reduced to the recoverable amount. The recoverable amount takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use of the asset. To achieve this, the recoverable amount is the higher of value in use (being the net present value of expected pre-tax future cash flows of the relevant asset) and fair value less costs to sell the asset. If, after the Company has previously recognized an impairment loss, circumstances indicate that the recoverable amount of the impaired assets is greater than the carrying amount, the Company reverses the impairment loss by the amount the revised fair value exceeds its carrying amount, to a maximum of the previous impairment loss. In no case shall the revised carrying amount exceed the original carrying amount, after depreciation or amortization, that would have been determined if no impairment loss had been recognized. n. Decommissioning provision The Company recognizes contractual, statutory and legal obligations associated with retirement of mining properties when those obligations result from the acquisition, construction, development or normal operation of the assets. Initially, the decommissioning provision is recognized at its fair value in the period in which it is incurred. Upon initial recognition of the liability, the corresponding decommissioning provision is added to the carrying amount of that asset and the cost is amortized as an expense over the economic life of the related asset. Following the initial recognition of the decommissioning provision, the periodic unwinding of the discount is recognized in the consolidated statement of loss and comprehensive loss and adjusted for changes to the amount or timing of the underlying cash flows to settle the obligation. o. Financial instruments The Company classifies its financial instruments into one of the following categories: fair value through profit or loss (“FVTPL”) (assets and liabilities), assets available-for-sale, loans and receivables, assets held-to-maturity and other financial liabilities. All financial instruments are measured at fair value on initial recognition. Financial assets and liabilities designated as FVTPL are subsequently measured at fair value with changes in fair value recognized in net earnings. Financial assets designated as “available-for-sale” are subsequently measured at fair value with changes in fair value recognized in other comprehensive income (loss), net of tax. Transaction costs for FVTPL financial assets and liabilities are recognized in income when incurred. Financial assets designated as “loans and receivables” or “held-to-maturity”, and financial liabilities designated as “other financial liabilities” are recorded at amortized cost. Transaction costs from loans and receivables and other financial liabilities offset the carrying amount of the related financial assets or liabilities. The Company has classified cash and cash equivalents and trade and other receivables as “loans and receivables”, trade and other payables are classified as “other financial liabilities”, and investments in equity instruments as “available-for-sale”. p. Borrowing costs Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of the cost of that asset and amortized over the expected useful life of that asset. Other borrowing costs not directly attributable to a qualifying asset are expensed in the period incurred. q. Provisions Provisions are recognized when the Company has a present obligation (legal or constructive) that has arisen as a result of a past event and it is probable that a future outflow of resources will be required to settle the obligation, provided that a reliable estimate can be made of the amount of the obligation. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risk specific to the obligation. The increase in the provision due to passage of time is recognized as interest expense. r. Related party transactions Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or common significant influence, and related parties may be individuals or corporate entities. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. Related party transactions that are in the normal course of business and have commercial substance are measured at the exchange amount. |
Significant accounting judgment
Significant accounting judgments and estimates | 12 Months Ended |
Dec. 31, 2017 | |
Significant accounting judgments and estimates [abstract] | |
Significant accounting judgments and estimates | 4. Significant accounting judgments and estimates The preparation of financial statements in conformity with IFRS requires management to make judgments and estimates that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The areas which require management to make significant judgments, estimates and assumptions in determining carrying values include, but are not limited to: (i) Reserves and resources Proven and probable reserves are the economically mineable parts of the Company’s measured and indicated mineral resources. The Company estimates its proven and probable reserves and measured and indicated and inferred mineral resources based on information compiled by appropriately qualified persons. The information relating to the geological data on the size, depth and shape of the ore bodies requires complex geological judgments to interpret the data. The estimation of future cash flows related to proven and probable reserves is based upon factors such as estimates of foreign exchange rates, commodity prices, future capital requirements and production costs along with geological assumptions and judgments made in estimating the size, grade and recovery of the ore bodies. Changes in the proven and probable reserves or measured, indicated and inferred mineral resources estimates may impact the carrying value of mining properties and equipment, depletion and amortization, impairment assessments and the timing of decommissioning provisions. (ii) Depletion and amortization Mining properties are depleted using the unit-of-production method over a period not to exceed the estimated life of the ore body based on estimated recoverable reserves. Property, plant and equipment are depreciated, net of residual value over their estimated useful life but do not exceed the related estimated life of the mine based on estimated recoverable mineral reserves. The calculation of the units of production rate, and therefore the annual depletion and amortization expense, could be materially affected by changes in the underlying estimates. Changes in estimates can be the result of actual future production differing from current forecasts of future production and expansion of mineral reserves through exploration activities. Significant judgment is involved in the determination of useful life and residual values for the computation of depletion and amortization. No assurance can be given that actual useful lives and residual values will not differ significantly from current assumptions. (iii) Decommissioning provision The Company assesses its decommissioning provision on an annual basis or when new material information becomes available. Mining and exploration activities are subject to various laws and regulations governing the protection of the environment. In general, these laws and regulations are continually changing and the Company has made, and intends to make in the future, expenditures to comply with such laws and regulations. Accounting for decommissioning provision requires management to make estimates of the time and future costs the Company will incur to complete the rehabilitation work required to comply with existing laws and regulations at each mining operation. Also, future changes to environmental laws and regulations could increase the extent of rehabilitation work required to be performed by the Company. Increases in future costs could materially impact the amounts charged to operations for decommissioning provision. The provision represents management’s best estimate of the present value of the future decommissioning provision. The actual future expenditures may differ from the amounts currently provided. (iv) Share-based payments The amount expensed for share-based compensation is based on the application of a recognized option valuation formula, which is highly dependent on, amongst other things, the expected volatility of the Company’s registered shares, estimated forfeitures, and the expected life of the options. The Company uses an expected volatility rate for its shares based on past stock trading data, adjusted for future expectations, and actual volatility may be significantly different. The resulting value calculated is not necessarily the value that the holder of the option could receive in an arm’s length transaction, given that there is no market for the options and they are not transferable. It is management’s view that the value derived is highly subjective and dependent entirely upon the input assumptions made. (v) Income taxes Preparation of the consolidated financial statements requires an estimate of income taxes in each of the jurisdictions in which the Company operates. The process involves an estimate of the Company’s current tax exposure and an assessment of temporary differences resulting from differing treatment of items, such as depletion and amortization, for tax and accounting purposes, and when they might reverse. These differences result in deferred tax assets and liabilities that are included in the Company’s consolidated statements of financial position. An assessment is also made to determine the likelihood that the Company’s future tax assets will be recovered from future taxable income. To the extent that recovery is not considered likely, the related tax benefits are not recognized. Judgment is required to continually assess changing tax interpretations, regulations and legislation, to ensure liabilities are complete and to ensure assets, net of valuation allowances, are realizable. The impact of different interpretations and applications could be material. (vi) Commercial production The determination of timing on which a mining property enters into commercial production is a significant judgment since capitalization of development costs ceases and revenue recognition begins upon declaration of commercial production. As a mining property is constructed, development costs incurred are capitalized while pre-production costs and revenues are capitalized and accumulated into such development costs. Commercial production is declared once the mining property is available for its intended use on a commercial scale as defined by management. Revenue recognition and depletion of the mining property begins when commercial production has been achieved. |
Changes in accounting policies
Changes in accounting policies and recent accounting pronouncements | 12 Months Ended |
Dec. 31, 2017 | |
Changes in accounting policies and recent accounting pronouncements [abstract] | |
Changes in accounting policies and recent accounting pronouncements | 5. Changes in accounting policies and recent accounting pronouncements The following are future changes in accounting policies not yet effective as at December 31, 2017: (i) Financial instruments IFRS 9 - Financial Instruments (ii) Revenue from contracts with customers IFRS 15 - Revenue from Contracts with Customers (iii) Leases IFRS 16 - Leases |
Trade and other receivables
Trade and other receivables | 12 Months Ended |
Dec. 31, 2017 | |
Trade and other receivables [abstract] | |
Trade and other receivables | 6. Trade and other receivables December 31, December 31, 2017 2016 Trade receivables $ 3,779 $ 2,126 Value added taxes receivable 2,751 1,638 Other receivables 101 238 $ 6,631 $ 4,002 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2017 | |
Classes of current inventories [abstract] | |
Inventories | 7. Inventories December 31, December 31, 2017 2016 Concentrates $ 1,391 $ 1,266 Ore stockpiles 2,877 161 Spare parts and supplies 5,098 5,191 $ 9,366 $ 6,618 The amount of inventories recognized as an expense during the year ended December 31, 2017 was $40.0 million (2016: $46.1 million). During the year ended December 31, 2017, the concentrates and ore stockpiles, and spare parts and supplies write-down to net realizable value included in cost of sales was $0.4 million and $0.3 million, respectively (2016: $1.0 million and $0.1 million, respectively). |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Property, plant and equipment | 8. Property, plant and equipment Mining Non-producing Plant and Corporate office interests properties equipment equipment Total Cost Balance at January 1, 2016 $ 63,954 $ 75,746 $ 38,196 $ 161 $ 178,057 Assets additions 4,569 1,583 1,817 3 7,972 Change in decommissioning provision (952 ) 61 - - (891 ) Disposals - - - (83 ) (83 ) Balance at December 31, 2016 67,571 77,390 40,013 81 185,055 Assets additions 5,233 5,526 8,795 3 19,557 Property purchase option acquired - 7,108 - - 7,108 Change in decommissioning provision (37 ) 38 - - 1 Reclassification 31,595 (31,595 ) - - - Balance at December 31, 2017 $ 104,362 $ 58,467 $ 48,808 $ 84 $ 211,721 Accumulated depreciation and depletion Balance at January 1, 2016 $ 28,298 $ 50,502 $ 18,305 $ 77 $ 97,182 Depreciation/depletion for the year 3,112 - 4,261 15 7,388 Disposals - - - (63 ) (63 ) Balance at December 31, 2016 31,410 50,502 22,566 29 104,507 Depreciation/depletion for the year 3,438 - 3,261 10 6,709 Write-down of equipment - - 204 - 204 Balance at December 31, 2017 $ 34,848 $ 50,502 $ 26,031 $ 39 $ 111,420 Carrying value at December 31, 2016 $ 36,161 $ 26,888 $ 17,447 $ 52 $ 80,548 at December 31, 2017 $ 69,514 $ 7,965 $ 22,777 $ 45 $ 100,301 On March 2, 2017, the Company entered into an option acquisition agreement with Impulsora Minera Santacruz S.A. de C.V., a wholly-owned subsidiary of Santacruz Silver Mining Ltd. (“Santacruz”), to acquire an existing option with Minera Hochschild Mexico S.A. de C.V. (“Hochschild”) for the right to acquire a 100% interest of the San Felipe property located in Sonora, Mexico for total consideration of $15 million in cash, payable in two installments. The purchase of the option of $5 million to Santacruz plus an initial option payment of $2 million to Hochschild, plus applicable VAT, was paid with cash on hand by the Company in March while the final option payment of $8 million, plus applicable VAT, was payable to Hochschild on or before December 15, 2017. On December 1, 2017, the final option payment of $8 million plus applicable VAT was amended to become option payments of $0.5 million payable on January 1, 2018, $0.5 million payable on April 1, 2018, $1.0 million payable on July 1, 2018, with the remaining balance of $6.0 million payable on or before December 31, 2018. Effective December 19, 2017, the San Rafael mine declared commercial production which the Company defined as operating at an average of 80% designed production capacity with saleable concentrate recoveries within 5% of its mining feasibility study over a two week period. The Company transferred $31.6 million in net book value from non-producing properties to mining interests, net of pre-commercial production revenue of $4.0 million and historical carrying value of $25.2 million. Non-current assets are tested for impairment or impairment reversals when events or changes in circumstances suggest that the carrying amount may not be recoverable. A write-down of $0.2 million related to the U.S. operations was recorded for the year ended December 31, 2017 as a result of writing down carrying amounts of equipment to recoverable amounts. No other impairment or impairment reversal indicators were identified for the year ended December 31, 2017. The amount of borrowing costs capitalized as property, plant and equipment was $0.7 million during the year ended December 31, 2017 (2016: nil). |
Credit facilities
Credit facilities | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of detailed information about borrowings [abstract] | |
Credit facilities | 9. Credit facilities On August 7, 2013, the Company signed a credit agreement with Royal Capital Management Corp. as security agent, and certain lenders (the “RCM Credit Agreement”). The RCM Credit Agreement provided for the issuance of notes with an aggregate principal amount of $6.4 million ($8.5 million CAD) maturing in December 2017 at an interest rate of 12% per annum payable on a monthly basis. On March 30, 2017, the remaining principal portion of the RCM Credit Agreement of $5.6 million was repaid in full. On November 10, 2015, the Company closed a subordinated, secured credit agreement with a lender (the “Subordinated Facility”) for principal amount of $1.0 million for a term of one year at an interest rate of 12% per annum payable on a monthly basis beginning on the sixth month following closing. On September 26, 2016, the remaining principal portion of the Subordinated Facility of $0.7 million was repaid in full. On February 11, 2016, the Company closed a subordinated, secured credit agreement with its two existing lenders (the “New Credit Facility”) for principal amount of $2.9 million for a term of one year at an interest rate of 10% per annum payable on a quarterly basis in cash or shares at the option of the lenders with the full balance due on maturity. On October 3, 2016, the principal portion for one lender of the New Credit Facility of $1.3 million was repaid in full. On February 10, 2017, the remaining principal portion for the other lender of New Credit Facility of $1.6 million was repaid in full on maturity. |
Pre-payment facility
Pre-payment facility | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Pre-payment facility [abstract] | |
Pre-payment facility | 10. Pre-payment facility On January 29, 2017, the Company entered into a pre-payment facility for $15.0 million with Metagri S.A. de C.V., a subsidiary of Glencore PLC (“Glencore”), to fund a portion of the development costs for the San Rafael project within the Cosalá |
Post-employment benefit obligat
Post-employment benefit obligations | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of defined benefit plans [abstract] | |
Post-employment benefit obligations | 11. Post-employment benefit obligations The Company maintains two non-contributory defined benefit pension plans covering substantially all employees at its U.S. operating subsidiary, U.S. Silver – Idaho, Inc. One plan covers salaried employees and one plan covers hourly employees. Benefits for the salaried plan are based on salary and years of service. Hourly plan benefits are based on negotiated benefits and years of service. The Company’s funding policy is to contribute annually the minimum amount prescribed, as specified by applicable regulations. The expected average service life of the active plan participants as at December 31, 2017 is approximately 9 years. The amounts recognized in the consolidated statements financial position are as follows: December 31, December 31, 2017 2016 Present value of funded obligations $ 26,730 $ 23,910 Fair value of plan assets 18,112 15,794 Deficit of funded plans $ 8,618 $ 8,116 The movements in the defined benefit obligations are as follows: December 31, December 31, 2017 2016 Obligations, beginning of year $ 23,910 $ 24,495 Current service costs 774 781 Interest costs 999 1,057 Benefits paid (901 ) (830 ) Actuarial loss (gain) 1,948 (1,593 ) Obligations, end of year $ 26,730 $ 23,910 The movements in the fair value of plan assets are as follows: December 31, December 31, 2017 2016 Assets, beginning of year $ 15,794 $ 15,205 Return on assets 678 648 Actuarial gain 1,555 13 Employer contributions 986 758 Benefits paid (901 ) (830 ) Assets, end of year $ 18,112 $ 15,794 The amounts recognized in the consolidated statements of loss and comprehensive loss are as follows: December 31, December 31, 2017 2016 Current service costs and interest costs included in cost of sales $ 1,773 $ 1,838 The principal actuarial assumptions are as follows: December 31, December 31, T 2017 2016 Discount rate (expense) 4.25 % 4.25 % Discount rate (year end disclosures) 3.75 % 4.25 % Future salary increases (salaried plan only) 5.00 % 5.00 % A 1% decrease in discount rate would have resulted in approximately $4.4 million increase in the defined benefit obligation from $26.7 million to $31.1 million as at December 31, 2017 (2016: $3.8 million increase in the defined benefit obligation from $23.9 million to $27.7 million). A 1% increase in future salary increases would have resulted in approximately $0.1 million increase in the defined benefit obligation from $26.7 million to $26.8 million as at December 31, 2017 (2016: $0.1 million increase in the defined benefit obligation from $23.9 million to $24.0 million). Plan assets are fully comprised of pooled or mutual funds. The expected return on plan assets at 4.3% (2016: 4.2%) is determined by considering the expected returns available on the assets underlying the current investment policy. Expected yield on fixed interest investments is based on gross redemption yields as at the end of the reporting period. Expected returns on equity investments reflect long-term real rates of return in the market. Expected contributions to pension benefit plans for the year ended December 31, 2018 are approximately $0.8 million. For the year ended December 31, 2017, the actuarial losses charged to other comprehensive loss are $0.4 million (2016: actuarial gains of $1.6 million charged to other comprehensive income). |
Decommissioning provision
Decommissioning provision | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of other provisions [abstract] | |
Decommissioning provision | 12. Decommissioning provision The decommissioning provision consists of land rehabilitation, demolition of buildings and mine facilities, and related costs. Although the ultimate amount of the decommissioning provision is uncertain, the fair value of these obligations is based on information currently available, including closure plans and the Company’s interpretation of current regulatory requirements. Fair value is determined based on the net present value of future cash expenditures upon reclamation and closure. Reclamation and closure costs are capitalized into property, plant and equipment depending on the nature of the asset related to the obligation and amortized over the life of the related asset. The decommissioning provision relates to reclamation and closure costs of the Company’s Cosalá December 31, December 31, 2017 2016 Provisions, beginning of year $ 3,829 $ 4,568 Decommissioning costs and change in estimates (66 ) (891 ) Accretion on decommissioning provision 185 152 Provisions, end of year $ 3,948 $ 3,829 |
Share capital
Share capital | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of classes of share capital [abstract] | |
Share capital | 13. Share capital On December 21, 2016 the Company completed a share consolidation of issued and outstanding common shares on the basis of twelve pre-consolidated common shares for one post-consolidated common share. The share consolidation affects all issued and outstanding common shares, options, warrants, deferred share units, and restricted share units. All information relating to issued and outstanding common shares, options, warrants, deferred share units, restricted share units, and related per share amounts have been adjusted retrospectively to reflect the share consolidation. a. Authorized Authorized share capital consists of an unlimited number of common shares. On June 9, 2016, the Company completed a private placement of 5,555,555 units at a price of $3.60 CAD per unit for total gross proceeds of $15.7 million. Each unit consisted of one common share and one quarter of one common share purchase warrant where each whole warrant is exercisable for one common share at an exercise price of $4.68 CAD for a period of five years. As part of the private placement, 388,886 broker warrants were issued to the Company’s brokers where each broker warrant is exercisable for one broker unit at an exercise price of $4.20 CAD for a period of two years. Each broker unit consisted of one common share and one quarter of one common share purchase warrant where each whole warrant is exercisable for one common share at an exercise price of $4.68 CAD for a period of five years starting on June 9, 2016. On June 14, 2016, the Company completed a private placement of 3,210,416 subscription receipts at a price of $3.60 CAD per subscription receipt for total gross proceeds of $9.0 million. The gross proceeds from subscription receipts were held in escrow pending the satisfaction of certain regulatory and shareholder approvals for the exchange of subscription receipts for units. The Company received the necessary approvals on July 20, 2016 and completed the exchange of 3,210,416 subscription receipts for units in connection with the above private placement on June 14, 2016. Each unit consisted of one common share and one quarter of one common share purchase warrant where each whole warrant is exercisable for one common share at an exercise price of $4.68 CAD for a period of five years. As part of the private placement, 224,728 broker warrants were issued to the Company’s brokers where each broker warrant is exercisable for one broker unit at an exercise price of $4.20 CAD for a period of two years. Each broker unit consisted of one common share and one quarter of one common share purchase warrant where each whole warrant is exercisable for one common share at an exercise price of $4.68 CAD for a period of five years starting on June 14, 2016. December 31, December 31, 2017 2016 Issued 41,496,950 (2016: 39,540,384) common shares $ 207,012 $ 202,191 b. Stock option plan The number of shares reserved for issuance under the Company’s stock option plan is limited to 10% of the number of common shares which are issued and outstanding on the date of a particular grant of options. Under the plan, the Board of Directors determines the term of a stock option to a maximum of 10 years, the period of time during which the options may vest and become exercisable as well as the option exercise price which shall not be less than the closing price of the Company’s share on the Toronto Stock Exchange on the date immediately preceding the date of grant. The Compensation Committee determines and makes recommendations to the Board of Directors as to the recipients of, and nature and size of, share-based compensation awards in compliance with applicable securities law, stock exchange and other regulatory requirements. A summary of changes in the Company’s outstanding stock options is presented below: December 31, December 31, 2017 2016 Weighted Weighted average average exercise exercise Number price Number price (thousands) CAD (thousands) CAD Balance, beginning of year 1,771 $ 4.64 1,516 $ 9.50 Granted 1,058 3.86 808 2.09 Exercised (261 ) 3.22 (93 ) 3.12 Expired (252 ) 17.31 (460 ) 16.50 Balance, end of year 2,316 $ 3.06 1,771 $ 4.64 The following table summarizes information on stock options outstanding and exercisable as at December 31, 2017: Weighted average Weighted Weighted remaining average average Exercise contractual exercise exercise price life Outstanding price Exercisable price CAD (years) (thousands) CAD (thousands) CAD 2.00 to 3.00 0.78 1,163 $ 2.14 899 $ 2.17 3.01 to 4.00 2.07 1,050 3.85 350 3.85 4.01 to 5.00 1.75 25 4.59 14 4.63 5.01 to 6.00 0.41 78 5.65 78 5.65 2,316 $ 3.06 1,341 $ 2.84 c. Share-based payments The weighted average fair value at grant date of the Company’s stock options granted during the year ended December 31, 2017 was $1.58 (2016: $1.08). The Company used the Black-Scholes Option Pricing Model to estimate fair value using the following weighted-average assumptions: Year ended Year ended December 31, December 31, 2017 2016 Expected stock price volatility (1) 83 % 83 % Risk free interest rate 0.87 % 0.47 % Expected life 3 years 3 years Expected forfeiture rate 4.18 % 4.97 % Expected dividend yield 0 % 0 % Share-based payments included in cost of sales $ - $ 19 Share-based payments included in general and administrative expenses 1,491 566 Total share-based payments $ 1,491 $ 585 (1) Expected volatility has been based on historical volatility of the Company’s publicly traded shares. d. Warrants The warrants that are issued and outstanding as at December 31, 2017 are as follows: Number of Exercise Issuance Expiry warrants price (CAD) date date 742,883 4.68 Jul 2016 Jun 14, 2021 224,728 4.20 Jul 2016 Jun 14, 2018 1,350,204 4.68 Jun 2016 Jun 9, 2021 388,886 4.20 Jun 2016 Jun 9, 2018 1,537,355 1.20 Feb 2016 Feb 10, 2019 307,777 1.20 Nov 2015 Nov 10, 2018 29,166 1.56 Aug 2015 Aug 26, 2018 190,906 3.00 Aug 2015 Aug 26, 2018 395,486 1.56 May 2015 May 27, 2018 5,167,391 The 388,886 warrants issued in June 2016 are broker warrants where each broker warrant is exercisable for one broker unit at an exercise price of $4.20 CAD for a period of two years. Each broker unit consisted of one common share and one quarter of one common share purchase warrant where each whole warrant is exercisable for one common share at an exercise price of $4.68 CAD for a period of five years starting on June 9, 2016. The 224,728 warrants issued in July 2016 are broker warrants where each broker warrant is exercisable for one broker unit at an exercise price of $4.20 CAD for a period of two years. Each broker unit consisted of one common share and one quarter of one common share purchase warrant where each whole warrant is exercisable for one common share at an exercise price of $4.68 CAD for a period of five years starting on June 14, 2016. e. Restricted Share Units: The Company has a Restricted Share Unit Plan under which eligible directors, officers and key employees of the Company are entitled to receive awards of restricted share units. Each restricted share unit is equivalent in value to the fair market value of a common share of the Company on the date of grant with the value of each cash settled award charged to compensation expense over the period of vesting. At each reporting date, the compensation expense and associated liability (which is included in trade and other long-term liabilities in the consolidated statement of financial position) are adjusted to reflect changes in market value. As at December 31, 2017, 208,722 (2016: 351,856) restricted share units are outstanding at an aggregate value of $0.8 million (2016: $0.9 million). f. Deferred Share Units: The Company has a Deferred Share Unit Plan under which eligible directors of the Company are entitled to receive awards of deferred share units on a quarterly basis as payment for 20% to 100% of their director fees earned. Deferred share units are settled in either cash or common shares at the Company’s discretion when the director leaves the Company’s Board of Directors. The Company recognizes a cost in director fees and a corresponding increase in equity reserve upon issuance of deferred share units. As at December 31, 2017, 286,920 (2016: 240,313) deferred share units are issued and outstanding. |
Weighted average basic and dilu
Weighted average basic and diluted number of common shares outstanding | 12 Months Ended |
Dec. 31, 2017 | |
Weighted average basic and diluted number of common shares outstanding [abstract] | |
Weighted average basic and diluted number of common shares outstanding | 14. Weighted average basic and diluted number of common shares outstanding Year ended Year ended December 31, December 31, 2017 2016 Basic weighted average number of shares 40,194,660 34,526,435 Effect of dilutive stock options and warrants - - Diluted weighted average number of shares 40,194,660 34,526,435 Diluted weighted average number of common shares for the year ended December 31, 2017 excludes 2,316,264 (2016: 1,770,765) anti-dilutive stock options and 5,167,391 (2016: 6,862,508) anti-dilutive warrants. |
Cost of sales
Cost of sales | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of cost of sales [abstract] | |
Cost of sales | 15. Cost of sales Year ended Year ended December 31, December 31, 2017 2016 Salaries and employee benefits $ 22,314 $ 23,430 Raw materials and consumables 14,252 15,065 Utilities 3,902 4,113 Other costs 2,318 1,768 Changes in inventories (2,748 ) 1,769 $ 40,038 $ 46,145 |
Corporate general and administr
Corporate general and administrative expenses | 12 Months Ended |
Dec. 31, 2017 | |
Corporate general and administrative expenses [abstract] | |
Corporate general and administrative expenses | 16. Corporate general and administrative expenses Year ended Year ended December 31, December 31, 2017 2016 Salaries and employee benefits $ 2,173 $ 2,153 Directors’ fees 269 251 Share-based payments 1,930 1,237 Professional fees 477 639 Office and general 1,802 1,075 $ 6,651 $ 5,355 |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes [abstract] | |
Income taxes | 17. Income taxes The components of income tax expense (recovery) are as follows: Year ended Year ended December 31, December 31, 2017 2016 Current income tax expense $ 161 $ - Deferred income tax expense (recovery) (588 ) 210 Income tax expense (recovery) $ (427 ) $ 210 The Company’s effective rate of income tax differs from the statutory rate of 26.5% as follows: Year ended Year ended December 31, December 31, 2017 2016 Tax recovery at statutory rates $ (1,032 ) $ (1,330 ) Mexican mining royalty 199 210 Impact of foreign tax rates 18 215 Non-deductible expenses 535 1,477 Alternative minimum tax credits (626 ) - Losses not recognized (recognized) 479 (362 ) Income tax expense (recovery) $ (427 ) $ 210 On December 22, 2017, the United States government enacted a tax reform with changes to reducing the corporate income tax rate from 35% to 21% and repealing the corporate alternative minimum tax effective January 1, 2018. The Company assessed the impact of the tax reform and recognized a deferred tax asset of $0.6 million as at December 31, 2017 with respect to recoverable alternative minimum tax credits. Impact of the tax reform may differ due to changes in interpretations and assumptions made along with guidance which may subsequently be issued. The Company’s net deferred tax liability relates to the Mexican mining royalty and arises principally from the following: December 31, December 31, 2017 2016 Property, plant and equipment $ 900 $ 972 Total deferred tax liabilities 900 972 Alternative minimum tax credits 626 - Other 28 138 Total deferred tax assets 654 138 Net deferred tax liabilities $ 246 $ 834 Deferred income taxes have not been recognized in respect of the following deductible temporary differences, as management does not consider their utilization to be probable for the foreseeable future: December 31, December 31, 2017 2016 Property, plant and equipment $ 4,890 $ 3,272 Mexican tax losses (expiring in 2018 - 2027) 42,843 52,702 Canadian tax losses (expiring in 2029 - 2037) 35,173 30,268 U.S. tax losses (expiring in 2020 - 2037) 32,070 29,764 Provisions and other 24,956 24,718 Deferred Mexican mining royalty 872 834 $ 140,804 $ 141,558 |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of transactions between related parties [abstract] | |
Related party transactions | 18. Related party transactions Remuneration to directors and key management who have the authority and responsibility for planning, directing and continuing the activities of the Company: Year ended Year ended December 31, December 31, 2017 2016 Salaries and benefits $ 888 $ 860 Severance - 75 Directors’ fees 269 251 Share-based payments 1,617 968 |
Financial risk management
Financial risk management | 12 Months Ended |
Dec. 31, 2017 | |
Financial risk management [abstract] | |
Financial risk management | 19. Financial risk management a. Financial risk factors The Company’s risk exposures and the impact on its financial instruments are summarized below: (i) Credit Risk Credit risk is the risk of loss associated with a counterparty’s inability to fulfill its payment obligations. The Company’s credit risk is primarily attributable to cash and cash equivalents and trade and other receivables. The credit risk on cash and cash equivalents is limited because the Company invests its cash in deposits with well-capitalized financial institutions with strong credit ratings in Canada and the United States. Under current concentrate offtake agreements, risk on trade receivables related to concentrate sales is managed by receiving payments for 85% to 100% of the estimated value of the concentrate within one month following the time of shipment. As of December 31, 2017, the Company’s exposure to credit risk with respect to trade receivables amounts to $3.8 million (December 31, 2016: $2.1 million). The Company believes credit risk for Mexican Value Added Taxes of $2.8 million (December 31, 2016: $1.6 million) is not significant as they relate to current amounts receivable from Mexican taxation authorities. There are no receivables that are past due and the Company has no allowance for doubtful accounts at December 31, 2017 and December 31, 2016. (ii) Liquidity risk Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they arise. The Company’s approach to managing liquidity risk is to ensure that it will have sufficient liquidity to meet liabilities when due. The Company’s liquidity requirements are met through a variety of sources, including cash, cash generated from operations, existing credit facilities and debt and equity capital markets. The Company’s trade payables have contractual maturities of less than 30 days and are subject to normal trade terms. The following table presents the contractual maturities of the Company’s financial liabilities on an undiscounted basis: December 31, 2017 Less than Over 5 Total 1 year 2-3 years 4-5 years years Trade and other payables $ 10,393 $ 10,393 $ - $ - $ - Pre-payment facility 15,000 4,000 11,000 - - Interest on pre-payment facility 1,601 856 745 - - Leases 1,438 290 563 540 45 Other long-term liabilities 564 - 95 - 469 $ 28,996 $ 15,539 $ 12,403 $ 540 $ 514 (iii) Market risk Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and price risk. (1) Interest rate risk The Company is not subject to significant interest rate risk as the existing credit facilities have a fixed interest rate. (2) Currency risk As at December 31, 2017, the Company is exposed to foreign currency risk through financial assets and liabilities denominated in CAD and Mexican pesos (“MXP”): Financial instruments that may impact the Company’s net earnings or other comprehensive income due to currency fluctuations include CAD and MXP denominated assets and liabilities which are included in the following table: As at December 31, 2017 CAD MXP Cash and cash equivalents $ 1,436 $ 1,681 Trade and other receivables 19 2,814 Trade and other payables 1,831 4,385 As at December 31, 2017, the CAD/USD and MXP/USD exchange rates were 1.25 and 19.74, respectively. The sensitivity of the Company’s net loss and comprehensive loss due to changes in the exchange rates as at December 31, 2017 is included in the following table: CAD/USD MXP/USD Exchange rate Exchange rate +/- 10% +/- 10% Approximate impact on: Net loss $ 732 $ 850 Other comprehensive loss (93 ) 110 The Company may, from time to time, employ derivative financial instruments to manage exposure to fluctuations in foreign currency exchange rates. (3) Price risk Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments in the market. As at December 31, 2017, the Company had certain amounts related to the sales of concentrates that have only been provisionally priced. A ±10% fluctuation in silver, zinc, lead, and copper prices would affect trade receivables by approximately $0.4 million (2016: $0.2 million). The Company may use derivatives to manage its exposure to price risk. b. Fair values The fair value of cash, restricted cash, trade and other payables, credit facilities and other long-term liabilities approximate their carrying amounts. The methods and assumptions used in estimating the fair value of other financial assets and liabilities are as follows: · Cash and cash equivalents: The fair value of cash equivalents is valued using quoted market prices in active markets. The Company’s cash equivalents consist of money market accounts held at financial institutions which have original maturities of less than 90 days. · Trade and other receivables: The fair value of trade receivables from silver sales contracts that contain provisional pricing terms is determined using the appropriate quoted forward price from the exchange that is the principal active market for the particular metal. As such, there is an embedded derivative feature within trade receivables. · Available-for-sale investment: Investment in publicly quoted equity securities have been marked to market based on the trading price as at December 31, 2017. · Long-term investments: The fair value of long-term investments is determined based on the closing price of each security at the balance sheet date. The closing price is a quoted market price obtained from the exchange that is the principal active market for the particular security. · Embedded derivatives: Revenues from the sale of metals produced since the commencement of commercial production are based on provisional prices at the time of shipment. Variations between the price recorded at the time of sale and the actual final price received from the customer are caused by changes in market prices for metals sold and result in an embedded derivative in revenues and accounts receivable. · Derivatives: The Company uses derivative and non-derivative instruments to manage financial risks, including commodity, interest rate, and foreign exchange risks. The use of derivative contracts is governed by documented risk management policies and approved limits. The Company does not use derivatives for speculative purposes. The fair value of the Company’s derivative instruments is based on quoted market prices for similar instruments and at market prices at the valuation 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 and volatility measurements used to value option contracts), 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). December 31, December 31, 2017 2016 Level 1 Cash and cash equivalents $ 9,325 $ 24,055 Restricted cash 331 151 Available-for-sale investment - 503 Long-term investments 4 28 Level 2 Trade and other receivables 6,631 4,002 Credit facilities - 7,758 Pre-payment facility 15,000 - |
Segmented and geographic inform
Segmented and geographic information, and major customers | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of operating segments [abstract] | |
Segmented and geographic information, and major customers | 20. Segmented and geographic information, and major customers a. Segmented information The Company’s operations comprise of three reporting segments engaged in acquisition, exploration, development and exploration of mineral resource properties in Mexico and the United States. Management has determined the operating segments based on the reports reviewed by the chief operating decision makers that are used to make strategic decisions. b. Geographic information All revenues from sale of concentrates for year ended December 31, 2017 and 2016 were earned in Mexico and the United States. The following segmented information is presented as at and during the years ended December 31, 2017 and 2016. As at December 31, 2017 As at December 31, 2016 Mexican Operations U.S. Operations Corporate and Other Total Mexican Operations U.S. Operations Corporate and Other Total Cash and cash equivalents $ 5,963 $ 1,791 $ 1,571 $ 9,325 $ 1,875 $ 3,511 $ 18,669 $ 24,055 Trade and other receivables 4,901 1,711 19 6,631 2,855 1,106 41 4,002 Inventories 6,301 3,065 - 9,366 3,738 2,880 - 6,618 Prepaid expenses 346 305 218 869 840 353 192 1,385 Available-for-sale investment - - - - - - 503 503 Restricted cash 160 171 - 331 - 151 - 151 Long-term investments - - 4 4 - - 28 28 Property, plant and equipment 59,686 40,570 45 100,301 42,474 38,022 52 80,548 Total assets $ 77,357 $ 47,613 $ 1,857 $ 126,827 $ 51,782 $ 46,023 $ 19,485 $ 117,290 Trade and other payables $ 5,893 $ 2,608 $ 1,892 $ 10,393 $ 4,144 $ 2,422 $ 2,161 $ 8,727 Other long-term liabilities - 469 95 564 - 448 434 882 Credit facilities - - - - - - 7,758 7,758 Pre-payment facility 15,000 - - 15,000 - - - - Post-employment benefit obligations - 8,618 - 8,618 - 8,116 - 8,116 Decommissioning provision 1,904 2,044 - 3,948 1,834 1,995 - 3,829 Deferred tax liabilities (assets) 872 (626 ) - 246 834 - - 834 Total liabilities $ 23,669 $ 13,113 $ 1,987 $ 38,769 $ 6,812 $ 12,981 $ 10,353 $ 30,146 Year ended December 31, 2017 Year ended December 31, 2016 Mexican Operations U.S. Operations Corporate and Other Total Mexican Operations U.S. Operations Corporate and Other Total Revenue $ 21,512 $ 32,768 $ - $ 54,280 $ 23,322 $ 35,544 $ - $ 58,866 Cost of sales (10,195 ) (29,843 ) - (40,038 ) (17,679 ) (28,466 ) - (46,145 ) Depletion and amortization (3,247 ) (3,452 ) (10 ) (6,709 ) (3,534 ) (3,839 ) (15 ) (7,388 ) Care, maintenance and restructuring costs (60 ) (473 ) (168 ) (701 ) (399 ) (495 ) (99 ) (993 ) Corporate general and administrative - - (6,651 ) (6,651 ) - - (5,355 ) (5,355 ) Exploration costs (2,407 ) (319 ) - (2,726 ) (690 ) (991 ) - (1,681 ) Accretion on decommissioning provision (144 ) (41 ) - (185 ) (112 ) (40 ) - (152 ) Interest and financing income (expense) (35 ) - (688 ) (723 ) 2 - (2,339 ) (2,337 ) Foreign exchange gain (loss) (308 ) - 83 (225 ) 384 - (44 ) 340 Loss on disposal of assets - - - - - - (20 ) (20 ) Loss on available-for-sale investment - - (11 ) (11 ) - - - - Write-down of equipment - (204 ) - (204 ) - - (132 ) (132 ) Income (loss) before income taxes 5,116 (1,564 ) (7,445 ) (3,893 ) 1,294 1,713 (8,004 ) (4,997 ) Income tax recovery (expense) (219 ) 646 - 427 (210 ) - - (210 ) Net income (loss) for the year $ 4,897 $ (918 ) $ (7,445 ) $ (3,466 ) $ 1,084 $ 1,713 $ (8,004 ) $ (5,207 ) c. Major customers The Company sold concentrates to two customers during the year ended December 31, 2017 (2016: four customers), with each customer accounting for 60%, and 40% (2016: 59%, 31%, 9%, and 1%) of revenues, respectively. |
Capital management
Capital management | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of objectives, policies and processes for managing capital [abstract] | |
Capital management | 21. Capital management Capital is defined as equity. The Company’s objectives when managing its capital are to safeguard its ability to continue as a going concern and to maximize the value for its shareholders. The Company’s activities have been funded so far through debt and equity financing based on cash needs, and through operations. The Company typically sells its shares by way of private placement. There were no changes in these objectives, policies and processes used to manage capital during the year. The Company manages its capital structure and determines its capital requirements in light of the changing economic conditions and the risk characteristics of its assets. To reach its objectives the Company may have to maintain or adjust its capital structure by issuing new share capital or new debt. At this stage of its development, it is the policy of the Company to preserve cash to fund its operations and not to pay dividends. As of December 31, 2017 and 2016, the Company is not subject to any externally imposed capital requirements. The following summarizes the Company’s capital structure: December 31, December 31, 2017 2016 Equity attributable to shareholders of the Company $ 88,058 $ 87,144 |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of contingent liabilities [abstract] | |
Contingencies | 22. Contingencies Due to the size, complexity and nature of the Company’s operations, various legal and tax matters arise in the ordinary course of business. The Company accrues for such items when a liability is both probable and the amount can be reasonably estimated. In November 2010, the Company received a reassessment from the Mexican tax authorities related to its Mexican subsidiary, Minera Cosalá, for the year ended December 31, 2007. The tax authorities disallowed the deduction of transactions with certain suppliers for an amount of approximately $10.0 million (MXP 196.8 million), of which $4.3 million (MXP 84.4 million) would be applied against available tax losses. The Company appealed this reassessment and the Mexican tax authorities subsequently reversed $4.8 million (MXP 94.6 million) of their original reassessment. The remaining $5.2 million (MXP 102.2 million) consists of $4.3 million (MXP 84.4 million) related to transactions with certain suppliers and $0.9 million (MXP 17.8 million) of value added taxes thereon. The Company appealed the remaining reassessment with the Mexican Tax Court in December 2011. The Company may be required to post a bond of approximately $0.9 million (MXP 17.8 million) to secure the value added tax portion of the reassessment. The deductions of $4.3 million (MXP 84.4 million), if denied, would be offset by available tax losses. No amount has been recognized in the consolidated financial statements as the Company believes it is not likely that the reassessment will be upheld by the Tax Court. The Company filed an amparo lawsuit against the resolution and it waits for final resolution by the tax authorities currently under motion for review. |
Summary of significant accoun29
Summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of significant accounting policies [abstract] | |
Consolidation | a. Consolidation These consolidated financial statements incorporate the financial statements of the Company and the entities controlled by the Company (its subsidiaries, including special purpose entities). Control exists when the Company has the power, directly or indirectly, to govern the financial and operating policies of an entity so as to obtain benefits from its activities. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. All intercompany transactions and balances, income and expenses have been eliminated. The Company applies the acquisition method to account for business combinations. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The Company elects on an acquisition-by-acquisition basis whether to measure non-controlling interest at its fair value, or at its proportionate share of the recognized amount of identifiable net assets. Acquisition-related costs are expensed as incurred. Goodwill is initially measured as the excess of the aggregate of the consideration transferred and the fair value of non-controlling interest over the net identifiable assets acquired and liabilities assumed. If this consideration is negative, a bargain purchase gain is recognized immediately in profit or loss. Special Purpose Entities (“SPE’s”) as defined by the IASB in SIC 12 Consolidation–Special Purpose Entities |
Segment reporting | b. Segment reporting An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Company’s other components. Determination of operating segments are based on the reports reviewed by the chief operating decision makers that are used to make strategic decisions about resources to be allocated to the segment and performance assessment, and for which discrete financial information is available. Unallocated items not directly attributable to a segment comprise mainly of corporate assets and head office expenses. |
Presentation currency and functional currency | c. Presentation currency and functional currency The Company’s presentation currency is the U.S. dollar (“USD”). The functional currency of the Company’s Canadian subsidiaries is the Canadian dollar (“CAD”), and the functional currency of its U.S., Mexican and British Virgin Island’s subsidiaries and SPE’s is the USD. The consolidated financial statements of the Company are translated into the presentation currency. Assets and liabilities have been translated using the exchange rate at period end, and income, expenses and cash flow items are translated using the rate that approximates the exchange rates at the dates of the transactions (the average rate for the period). All resulting exchange differences are recorded in the foreign currency translation reserve. |
Foreign currency translations | d. Foreign currency translations |
Revenue recognition | e. Revenue recognition The following specific conditions must be met before revenue is recognized: · the title, specific risks and rewards of ownership have been transferred to the purchaser; · the Company does not retain continuing managerial involvement to the degree usually associated with ownership or effective control over the concentrate sold; · the amount of revenue and costs can be measured reliably; and · it is probable that the economic benefits associated with the transaction will flow to the Company. The Company’s sales of concentrates are made under provisional pricing arrangements where the final sale prices are determined by quoted market prices in a period subsequent to the date of sale. In these circumstances, revenue from sales is recorded at the time of sale based on forward prices for the expected date of final settlement. Subsequent variations in prices and metal quantities are recognized as revenue adjustments as they occur. Revenue is recognized net of treatment and selling costs if payment of those amounts is enforced at the time of sale. |
Defined benefit plans | f. Defined benefit plans The cost of defined benefit plans is determined using the projected unit credit method. The related pension liability recognized in the consolidated statement of financial position is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. Actuarial valuations for defined benefit plans are carried out annually. The discount rate applied in arriving at the present value of the pension liability represents the yield on high quality corporate bonds denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating the terms of the related pension liability. Actuarial gains and losses arise from the difference between the actual long-term rate of return on plan assets for a period and the expected long-term rate of return on plan assets for that period, or from changes in actuarial assumptions used to determine the accrued benefit obligation. Actuarial gains and losses arising in the year are recognized in full in the period in which they occur, in other comprehensive income (loss) and retained earnings without recycling to the consolidated statement of loss and comprehensive loss in subsequent periods. Current service cost, the recognized element of any past service cost, interest expense arising on the pension liability and the expected return on plan assets are recognized in the same line items in the consolidated statement of loss and comprehensive loss as the related compensation cost. The values attributed to plan liabilities are assessed in accordance with the advice of independent qualified actuaries. Service costs arising from plan amendments are recognized immediately. |
Share-based payments | g. Share-based payments The Company’s stock option plan allows its employees (including directors and officers) and non-employees to acquire shares of the Company. Accordingly, the fair value of the option is either charged to operations or capitalized to exploration or development expenditures, depending on the accounting for the optionee’s other compensation, with a corresponding increase in equity reserve. The costs of equity-settled transactions with employees are measured by reference to the fair value at the date on which they are granted using the Black-Scholes Option Pricing Model. The costs of equity-settled transactions are recognized, together with a corresponding increase in equity reserve, over the period in which the performance and/or service conditions are fulfilled, ending on the date on which the relevant employees become fully entitled to the award (the “vesting date”). The cumulative expense recognized for equity-settled transactions at each reporting date up to the vesting date reflects the Company’s best estimate of the number of equity instruments that will ultimately vest. The charge or credit for a period represents the movement in cumulative expense recognized as at the beginning and end of that period and the corresponding amount is represented in equity reserve. No expense is recognized for awards that do not ultimately vest. Where the terms of an equity-settled award are modified, the minimum expense recognized is the expense as if the terms had not been modified. An additional expense is recognized for any modification which increases the total fair value of the share-based payment arrangement, or is otherwise beneficial to the employee as measured at the date of modification. |
Income taxes | h. Income taxes Income tax comprises of current and deferred tax. Income tax is recognized in the consolidated statement of loss and comprehensive loss except to the extent that it relates to items recognized directly in other comprehensive income (loss) or directly in equity, in which case the income tax is also recognized directly in other comprehensive income (loss) or equity, respectively. The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in the countries where the Company’s subsidiaries operate and generate taxable profit. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities. Deferred income tax is recognized in respect of temporary differences between the carrying amount of assets and liabilities in the consolidated statement of financial position and the corresponding tax bases used in the computation of taxable profit. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantively enacted at the consolidated statement of financial position date and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled. Deferred income tax assets are recognized for all deductible temporary differences, carry-forward of unused tax credits and unused tax losses to the extent it is probable future taxable profits will be available against which they can be utilized. The Company did not recognize any deferred income taxes relating to its investments in subsidiaries. Deferred tax assets and liabilities are offset where they relate to income taxes levied by the same taxation authority and the Company has the legal right and intent to offset. |
Earnings/loss per share | i. Earnings/loss per share Basic earnings/loss per share is calculated by dividing the net earnings/loss for the period attributable to equity owners of the Company by the weighted average number of common shares outstanding during the period. Diluted earnings/loss per share is calculated by adjusting the weighted average number of common shares outstanding for dilutive instruments. The number of shares included with respect to options, warrants and similar instruments is computed using the treasury stock method. The treasury stock method, which assumes that outstanding stock options and warrants with an average exercise price below the market price of the underlying shares, are exercised and the assumed proceeds are used to repurchase common shares of the Company at the average market price of the common shares for the period. The Company’s potentially dilutive common shares comprise stock options granted to employees, and warrants. |
Comprehensive income (loss) | j. Comprehensive income (loss) Comprehensive income (loss) is the change in the Company’s net assets that results from transactions, events and circumstances from sources other than the Company’s shareholders and includes items that would not normally be included in net earnings such as foreign currency gains or losses related to the Company’s net investment in foreign operations and unrealized gains or losses on available-for-sale securities net of tax. The Company’s comprehensive income (loss), components of other comprehensive income and cumulative translation adjustments are presented in the consolidated statements of comprehensive income (loss) and the consolidated statements of changes in equity. |
Inventories | k. Inventories Concentrates, ore stockpile, and spare parts and supplies are valued at the lower of cost and estimated net realizable value. Cost for concentrates and ore stockpile includes all direct costs incurred in production including direct labour and materials, freight, depreciation and amortization and directly attributable overhead costs determined on a weighted average basis for the Mexican operations and first in, first out method for the U.S. operations. Cost for spare parts and supplies are determined using the first in, first out method. Net realizable value is calculated as the estimated price at the time of sale based on prevailing and future metal prices less estimated future production costs to convert inventories into saleable form. Any write-downs of inventory to net realizable value are recorded as cost of sales. If there is a subsequent increase in the value of inventories, the previous write-downs to net realizable value are reversed to the extent that the related inventory has not been sold. Ore stockpile represents ore that has been extracted from the mine and is available for further processing. Costs added to ore stockpile are valued based on current mining cost per tonne incurred up to the point of stockpiling the ore and are removed at the average cost per tonne. Ore stockpile is verified by periodic surveys and physical counts. Materials and supplies inventory are valued at the lower of cost and net realizable value, where cost is determined using the first-in-first-out method. Any provision for obsolescence is determined by reference to specific items of stock. A regular review is undertaken to determine the extent of any provision for obsolescence by comparing those items to their net realizable value. If carrying value exceeds net realizable value, a write-down is recognized. |
Investments | l. Investments An associate is an entity over which the Company has significant influence and that is neither a subsidiary nor an interest in a joint venture. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. Investments in companies over which the Company exercises neither control nor significant influence and are designated as available-for sale financial instruments are recorded at fair value. Unrealized gains and losses on available-for-sale financial instruments are recognized in other comprehensive income (loss), unless the decrease in value is significant or prolonged, in which case, the loss is recorded in the statements of loss and comprehensive loss. |
Property, plant and equipment | m. Property, plant and equipment (i) Producing mining interests Producing mining interests are carried at cost less accumulated depletion and amortization and accumulated impairment losses. Following the completion of commissioning, the costs related to the mining interests are depleted and charged to operations on the unit of production method as a proportion of estimated recoverable mineral reserves. Completion of the commissioning is deemed to have occurred when major mine and processing plant components are completed, operating results are being achieved consistently for a period of time and that there are indicators that these operational results, including mill capacity and recovery, will be sustainable in the future. Construction in progress is not depreciated until the assets are ready for their intended use. (ii) Non-producing mining interests The Company follows the method of accounting for its non-producing mining interests whereby all costs, net of incidental revenues, relating to the acquisition, exploration and development are deferred and capitalized by property until the property to which they directly relate is placed into production, sold, discontinued or subject to a condition of impairment. In the event that a mining interest is placed into production, capitalization of costs ceases, the costs are transferred to producing mining interests and the mining interest is depleted on a unit of production basis. The recoverability of amounts is dependent upon the discovery of economically recoverable mineral reserves, the ability of the Company to finance the development of the properties, and on the future profitable production or proceeds from the disposition thereof. (iii) Plant and equipment Property, plant and equipment are carried at cost less accumulated depreciation and accumulated impairment losses. When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate assets (major components) of property, plant and equipment. The cost of replacing a part of an item of property, plant and equipment is recognized in the carrying amount of the item if it is probable that the future economic benefits embodied within that part will flow to the Company, and its cost can be measured reliably. The carrying amount of the replaced part is derecognized. Repairs and maintenance are charged to the consolidated statement of loss and comprehensive loss during the period in which they are incurred. Depreciation is recorded over the estimated useful life of the asset as follows: • Mining interests – unit of production based upon estimated proven and probable reserves • Plant and equipment – 3 – 30 years over straight line basis • Corporate office equipment – 3 – 10 years over straight line basis Residual values, method of amortization and useful lives of the assets are reviewed annually and adjusted if appropriate. (iv) Impairment of mining interests The Company reviews and evaluates the carrying values of its tangible and intangible assets to determine whether there is an indication of impairment. For exploration and evaluation assets, indication includes but is not limited to expiration of the right to explore, substantive expenditure in the specific area is neither budgeted nor planned, and if the entity has decided to discontinue exploration activity in the specific area. When the carrying value of assets exceeds the recoverable amount, the carrying value of the assets is reduced to the recoverable amount. The recoverable amount takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use of the asset. To achieve this, the recoverable amount is the higher of value in use (being the net present value of expected pre-tax future cash flows of the relevant asset) and fair value less costs to sell the asset. If, after the Company has previously recognized an impairment loss, circumstances indicate that the recoverable amount of the impaired assets is greater than the carrying amount, the Company reverses the impairment loss by the amount the revised fair value exceeds its carrying amount, to a maximum of the previous impairment loss. In no case shall the revised carrying amount exceed the original carrying amount, after depreciation or amortization, that would have been determined if no impairment loss had been recognized. |
Decommissioning provision | n. Decommissioning provision The Company recognizes contractual, statutory and legal obligations associated with retirement of mining properties when those obligations result from the acquisition, construction, development or normal operation of the assets. Initially, the decommissioning provision is recognized at its fair value in the period in which it is incurred. Upon initial recognition of the liability, the corresponding decommissioning provision is added to the carrying amount of that asset and the cost is amortized as an expense over the economic life of the related asset. Following the initial recognition of the decommissioning provision, the periodic unwinding of the discount is recognized in the consolidated statement of loss and comprehensive loss and adjusted for changes to the amount or timing of the underlying cash flows to settle the obligation. |
Financial instruments | o. Financial instruments The Company classifies its financial instruments into one of the following categories: fair value through profit or loss (“FVTPL”) (assets and liabilities), assets available-for-sale, loans and receivables, assets held-to-maturity and other financial liabilities. All financial instruments are measured at fair value on initial recognition. Financial assets and liabilities designated as FVTPL are subsequently measured at fair value with changes in fair value recognized in net earnings. Financial assets designated as “available-for-sale” are subsequently measured at fair value with changes in fair value recognized in other comprehensive income (loss), net of tax. Transaction costs for FVTPL financial assets and liabilities are recognized in income when incurred. Financial assets designated as “loans and receivables” or “held-to-maturity”, and financial liabilities designated as “other financial liabilities” are recorded at amortized cost. Transaction costs from loans and receivables and other financial liabilities offset the carrying amount of the related financial assets or liabilities. The Company has classified cash and cash equivalents and trade and other receivables as “loans and receivables”, trade and other payables are classified as “other financial liabilities”, and investments in equity instruments as “available-for-sale”. |
Borrowing costs | p. Borrowing costs Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of the cost of that asset and amortized over the expected useful life of that asset. Other borrowing costs not directly attributable to a qualifying asset are expensed in the period incurred. |
Provisions | q. Provisions Provisions are recognized when the Company has a present obligation (legal or constructive) that has arisen as a result of a past event and it is probable that a future outflow of resources will be required to settle the obligation, provided that a reliable estimate can be made of the amount of the obligation. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risk specific to the obligation. The increase in the provision due to passage of time is recognized as interest expense. |
Related party transactions | r. Related party transactions Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or common significant influence, and related parties may be individuals or corporate entities. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. Related party transactions that are in the normal course of business and have commercial substance are measured at the exchange amount. |
Trade and other receivables (Ta
Trade and other receivables (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Trade and other receivables [abstract] | |
Schedule of Trade and Other Receivables | December 31, December 31, 2017 2016 Trade receivables $ 3,779 $ 2,126 Value added taxes receivable 2,751 1,638 Other receivables 101 238 $ 6,631 $ 4,002 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Classes of current inventories [abstract] | |
Schedule of Inventories | December 31, December 31, 2017 2016 Concentrates $ 1,391 $ 1,266 Ore stockpiles 2,877 161 Spare parts and supplies 5,098 5,191 $ 9,366 $ 6,618 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Schedule of Property, Plant and Equipment | Mining Non-producing Plant and Corporate office interests properties equipment equipment Total Cost Balance at January 1, 2016 $ 63,954 $ 75,746 $ 38,196 $ 161 $ 178,057 Assets additions 4,569 1,583 1,817 3 7,972 Change in decommissioning provision (952 ) 61 - - (891 ) Disposals - - - (83 ) (83 ) Balance at December 31, 2016 67,571 77,390 40,013 81 185,055 Assets additions 5,233 5,526 8,795 3 19,557 Property purchase option acquired - 7,108 - - 7,108 Change in decommissioning provision (37 ) 38 - - 1 Reclassification 31,595 (31,595 ) - - - Balance at December 31, 2017 $ 104,362 $ 58,467 $ 48,808 $ 84 $ 211,721 Accumulated depreciation and depletion Balance at January 1, 2016 $ 28,298 $ 50,502 $ 18,305 $ 77 $ 97,182 Depreciation/depletion for the year 3,112 - 4,261 15 7,388 Disposals - - - (63 ) (63 ) Balance at December 31, 2016 31,410 50,502 22,566 29 104,507 Depreciation/depletion for the year 3,438 - 3,261 10 6,709 Write-down of equipment - - 204 - 204 Balance at December 31, 2017 $ 34,848 $ 50,502 $ 26,031 $ 39 $ 111,420 Carrying value at December 31, 2016 $ 36,161 $ 26,888 $ 17,447 $ 52 $ 80,548 at December 31, 2017 $ 69,514 $ 7,965 $ 22,777 $ 45 $ 100,301 |
Post-employment benefit oblig33
Post-employment benefit obligations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of defined benefit plans [abstract] | |
Schedule of Amounts Recognized in Consolidated Statements of Financial Position | The amounts recognized in the consolidated statements financial position are as follows: December 31, December 31, 2017 2016 Present value of funded obligations $ 26,730 $ 23,910 Fair value of plan assets 18,112 15,794 Deficit of funded plans $ 8,618 $ 8,116 |
Schedule of Movements in Defined Benefit Obligations | The movements in the defined benefit obligations are as follows: December 31, December 31, 2017 2016 Obligations, beginning of year $ 23,910 $ 24,495 Current service costs 774 781 Interest costs 999 1,057 Benefits paid (901 ) (830 ) Actuarial loss (gain) 1,948 (1,593 ) Obligations, end of year $ 26,730 $ 23,910 |
Schedule of Fair Value of Plan Assets | The movements in the fair value of plan assets are as follows: December 31, December 31, 2017 2016 Assets, beginning of year $ 15,794 $ 15,205 Return on assets 678 648 Actuarial gain 1,555 13 Employer contributions 986 758 Benefits paid (901 ) (830 ) Assets, end of year $ 18,112 $ 15,794 |
Schedule of Amounts Recognized in Consolidated Statements of Loss and Comprehensive Loss | The amounts recognized in the consolidated statements of loss and comprehensive loss are as follows: December 31, December 31, 2017 2016 Current service costs and interest costs included in cost of sales $ 1,773 $ 1,838 |
Schedule of Principal Actuarial Assumptions | The principal actuarial assumptions are as follows: December 31, December 31, T 2017 2016 Discount rate (expense) 4.25 % 4.25 % Discount rate (year end disclosures) 3.75 % 4.25 % Future salary increases (salaried plan only) 5.00 % 5.00 % |
Decommissioning provision (Tabl
Decommissioning provision (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of other provisions [abstract] | |
Schedule of Changes in Decommissioning Provision | December 31, December 31, 2017 2016 Provisions, beginning of year $ 3,829 $ 4,568 Decommissioning costs and change in estimates (66 ) (891 ) Accretion on decommissioning provision 185 152 Provisions, end of year $ 3,948 $ 3,829 |
Share capital (Tables)
Share capital (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of classes of share capital [abstract] | |
Schedule of Share Capital | December 31, December 31, 2017 2016 Issued 41,496,950 (2016: 39,540,384) common shares $ 207,012 $ 202,191 |
Schedule of Changes in Company's Outstanding Stock Options | A summary of changes in the Company’s outstanding stock options is presented below: December 31, December 31, 2017 2016 Weighted Weighted average average exercise exercise Number price Number price (thousands) CAD (thousands) CAD Balance, beginning of year 1,771 $ 4.64 1,516 $ 9.50 Granted 1,058 3.86 808 2.09 Exercised (261 ) 3.22 (93 ) 3.12 Expired (252 ) 17.31 (460 ) 16.50 Balance, end of year 2,316 $ 3.06 1,771 $ 4.64 |
Schedule of Stock Options Outstanding and Exercisable | The following table summarizes information on stock options outstanding and exercisable as at December 31, 2017: Weighted average Weighted Weighted remaining average average Exercise contractual exercise exercise price life Outstanding price Exercisable price CAD (years) (thousands) CAD (thousands) CAD 2.00 to 3.00 0.78 1,163 $ 2.14 899 $ 2.17 3.01 to 4.00 2.07 1,050 3.85 350 3.85 4.01 to 5.00 1.75 25 4.59 14 4.63 5.01 to 6.00 0.41 78 5.65 78 5.65 2,316 $ 3.06 1,341 $ 2.84 |
Fair Value Weighted Average Assumptions | The Company used the Black-Scholes Option Pricing Model to estimate fair value using the following weighted-average assumptions: Year ended Year ended December 31, December 31, 2017 2016 Expected stock price volatility (1) 83 % 83 % Risk free interest rate 0.87 % 0.47 % Expected life 3 years 3 years Expected forfeiture rate 4.18 % 4.97 % Expected dividend yield 0 % 0 % Share-based payments included in cost of sales $ - $ 19 Share-based payments included in general and administrative expenses 1,491 566 Total share-based payments $ 1,491 $ 585 |
Warrants Issued and Outstanding | The warrants that are issued and outstanding as at December 31, 2017 are as follows: Number of Exercise Issuance Expiry warrants price (CAD) date date 742,883 4.68 Jul 2016 Jun 14, 2021 224,728 4.20 Jul 2016 Jun 14, 2018 1,350,204 4.68 Jun 2016 Jun 9, 2021 388,886 4.20 Jun 2016 Jun 9, 2018 1,537,355 1.20 Feb 2016 Feb 10, 2019 307,777 1.20 Nov 2015 Nov 10, 2018 29,166 1.56 Aug 2015 Aug 26, 2018 190,906 3.00 Aug 2015 Aug 26, 2018 395,486 1.56 May 2015 May 27, 2018 5,167,391 |
Weighted average basic and di36
Weighted average basic and diluted number of common shares outstanding (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Weighted average basic and diluted number of common shares outstanding [abstract] | |
Schedule of Weighted Average Basic and Diluted Number of Common Shares Outstanding | Year ended Year ended December 31, December 31, 2017 2016 Basic weighted average number of shares 40,194,660 34,526,435 Effect of dilutive stock options and warrants - - Diluted weighted average number of shares 40,194,660 34,526,435 |
Cost of sales (Tables)
Cost of sales (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of cost of sales [abstract] | |
Schedule of Cost of Sales | Year ended Year ended December 31, December 31, 2017 2016 Salaries and employee benefits $ 22,314 $ 23,430 Raw materials and consumables 14,252 15,065 Utilities 3,902 4,113 Other costs 2,318 1,768 Changes in inventories (2,748 ) 1,769 $ 40,038 $ 46,145 |
Corporate general and adminis38
Corporate general and administrative expenses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Corporate general and administrative expenses [abstract] | |
Schedule of Corporate General and Administrative Expenses | Year ended Year ended December 31, December 31, 2017 2016 Salaries and employee benefits $ 2,173 $ 2,153 Directors’ fees 269 251 Share-based payments 1,930 1,237 Professional fees 477 639 Office and general 1,802 1,075 $ 6,651 $ 5,355 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes [abstract] | |
Schedule of Components of Income Tax Expense (Recovery) | The components of income tax expense (recovery) are as follows: Year ended Year ended December 31, December 31, 2017 2016 Current income tax expense $ 161 $ - Deferred income tax expense (recovery) (588 ) 210 Income tax expense (recovery) $ (427 ) $ 210 |
Schedule of Reconciliation of Effective Tax Rate | The Company’s effective rate of income tax differs from the statutory rate of 26.5% as follows: Year ended Year ended December 31, December 31, 2017 2016 Tax recovery at statutory rates $ (1,032 ) $ (1,330 ) Mexican mining royalty 199 210 Impact of foreign tax rates 18 215 Non-deductible expenses 535 1,477 Alternative minimum tax credits (626 ) - Losses not recognized (recognized) 479 (362 ) Income tax expense (recovery) $ (427 ) $ 210 |
Schedule of Components of Deferred Tax Liabilities | The Company’s net deferred tax liability relates to the Mexican mining royalty and arises principally from the following: December 31, December 31, 2017 2016 Property, plant and equipment $ 900 $ 972 Total deferred tax liabilities 900 972 Alternative minimum tax credits 626 - Other 28 138 Total deferred tax assets 654 138 Net deferred tax liabilities $ 246 $ 834 |
Schedule of Components of Deferred Income Taxes not Recognized in Repect to Deductible Temporary Differences | Deferred income taxes have not been recognized in respect of the following deductible temporary differences, as management does not consider their utilization to be probable if the foreseeable future: December 31, December 31, 2017 2016 Property, plant and equipment $ 4,890 $ 3,272 Mexican tax losses (expiring in 2018 - 2027) 42,843 52,702 Canadian tax losses (expiring in 2029 - 2037) 35,173 30,268 U.S. tax losses (expiring in 2020 - 2037) 32,070 29,764 Provisions and other 24,956 24,718 Deferred Mexican mining royalty 872 834 $ 140,804 $ 141,558 |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of transactions between related parties [abstract] | |
Schedule of Transactions with Related Parties | Remuneration to directors and key management who have the authority and responsibility for planning, directing and continuing the activities of the Company: Year ended Year ended December 31, December 31, 2017 2016 Salaries and benefits $ 888 $ 860 Severance - 75 Directors’ fees 269 251 Share-based payments 1,617 968 |
Financial risk management (Tabl
Financial risk management (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Financial risk management [abstract] | |
Schedule of Contractual Maturities of Financial Liabilities | The following table presents the contractual maturities of the Company’s financial liabilities on an undiscounted basis: December 31, 2017 Less than Over 5 Total 1 year 2-3 years 4-5 years years Trade and other payables $ 10,393 $ 10,393 $ - $ - $ - Pre-payment facility 15,000 4,000 11,000 - - Interest on pre-payment facility 1,601 856 745 - - Leases 1,438 290 563 540 45 Other long-term liabilities 564 - 95 - 469 $ 28,996 $ 15,539 $ 12,403 $ 540 $ 514 |
Schedule of Market Risks | Financial instruments that may impact the Company’s net earnings or other comprehensive income due to currency fluctuations include CAD and MXP denominated assets and liabilities which are included in the following table: As at December 31, 2017 CAD MXP Cash and cash equivalents $ 1,436 $ 1,681 Trade and other receivables 19 2,814 Trade and other payables 1,831 4,385 |
Schedule of Sensitivity Analysis for Market Risks | The sensitivity of the Company’s net loss and comprehensive loss due to changes in the exchange rates as at December 31, 2017 is included in the following table: CAD/USD MXP/USD Exchange rate Exchange rate +/- 10% +/- 10% Approximate impact on: Net loss $ 732 $ 850 Other comprehensive loss (93 ) 110 |
Schedule of Fair Value Measurements | December 31, December 31, 2017 2016 Level 1 Cash and cash equivalents $ 9,325 $ 24,055 Restricted cash 331 151 Available-for-sale investment - 503 Long-term investments 4 28 Level 2 Trade and other receivables 6,631 4,002 Credit facilities - 7,758 Pre-payment facility 15,000 - |
Segmented and geographic info42
Segmented and geographic information, and major customers (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of operating segments [abstract] | |
Schedule of Operating Segments | The following segmented information is presented as at and during the years ended December 31, 2017 and 2016. As at December 31, 2017 As at December 31, 2016 Mexican Operations U.S. Operations Corporate and Other Total Mexican Operations U.S. Operations Corporate and Other Total Cash and cash equivalents $ 5,963 $ 1,791 $ 1,571 $ 9,325 $ 1,875 $ 3,511 $ 18,669 $ 24,055 Trade and other receivables 4,901 1,711 19 6,631 2,855 1,106 41 4,002 Inventories 6,301 3,065 - 9,366 3,738 2,880 - 6,618 Prepaid expenses 346 305 218 869 840 353 192 1,385 Available-for-sale investment - - - - - - 503 503 Restricted cash 160 171 - 331 - 151 - 151 Long-term investments - - 4 4 - - 28 28 Property, plant and equipment 59,686 40,570 45 100,301 42,474 38,022 52 80,548 Total assets $ 77,357 $ 47,613 $ 1,857 $ 126,827 $ 51,782 $ 46,023 $ 19,485 $ 117,290 Trade and other payables $ 5,893 $ 2,608 $ 1,892 $ 10,393 $ 4,144 $ 2,422 $ 2,161 $ 8,727 Other long-term liabilities - 469 95 564 - 448 434 882 Credit facilities - - - - - - 7,758 7,758 Pre-payment facility 15,000 - - 15,000 - - - - Post-employment benefit obligations - 8,618 - 8,618 - 8,116 - 8,116 Decommissioning provision 1,904 2,044 - 3,948 1,834 1,995 - 3,829 Deferred tax liabilities (assets) 872 (626 ) - 246 834 - - 834 Total liabilities $ 23,669 $ 13,113 $ 1,987 $ 38,769 $ 6,812 $ 12,981 $ 10,353 $ 30,146 Year ended December 31, 2017 Year ended December 31, 2016 Mexican Operations U.S. Operations Corporate and Other Total Mexican Operations U.S. Operations Corporate and Other Total Revenue $ 21,512 $ 32,768 $ - $ 54,280 $ 23,322 $ 35,544 $ - $ 58,866 Cost of sales (10,195 ) (29,843 ) - (40,038 ) (17,679 ) (28,466 ) - (46,145 ) Depletion and amortization (3,247 ) (3,452 ) (10 ) (6,709 ) (3,534 ) (3,839 ) (15 ) (7,388 ) Care, maintenance and restructuring costs (60 ) (473 ) (168 ) (701 ) (399 ) (495 ) (99 ) (993 ) Corporate general and administrative - - (6,651 ) (6,651 ) - - (5,355 ) (5,355 ) Exploration costs (2,407 ) (319 ) - (2,726 ) (690 ) (991 ) - (1,681 ) Accretion on decommissioning provision (144 ) (41 ) - (185 ) (112 ) (40 ) - (152 ) Interest and financing income (expense) (35 ) - (688 ) (723 ) 2 - (2,339 ) (2,337 ) Foreign exchange gain (loss) (308 ) - 83 (225 ) 384 - (44 ) 340 Loss on disposal of assets - - - - - - (20 ) (20 ) Loss on available-for-sale investment - - (11 ) (11 ) - - - - Write-down of equipment - (204 ) - (204 ) - - (132 ) (132 ) Income (loss) before income taxes 5,116 (1,564 ) (7,445 ) (3,893 ) 1,294 1,713 (8,004 ) (4,997 ) Income tax recovery (expense) (219 ) 646 - 427 (210 ) - - (210 ) Net income (loss) for the year $ 4,897 $ (918 ) $ (7,445 ) $ (3,466 ) $ 1,084 $ 1,713 $ (8,004 ) $ (5,207 ) |
Capital management (Tables)
Capital management (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of objectives, policies and processes for managing capital [abstract] | |
Schedule of Capital Structure | The following summarizes the Company’s capital structure: December 31, December 31, 2017 2016 Equity attributable to shareholders of the Company $ 88,058 $ 87,144 |
Summary of significant accoun44
Summary of significant accounting policies (Property, plant and equipment) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Mining interests [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful live of plant and equipment | unit of production based upon estimated proven and probable reserves |
Plant and equipment [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful live of plant and equipment | 3 30 years over straight line basis |
Corporate Office equipment [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful live of plant and equipment | 3 10 years over straight line basis |
Trade and other receivables (De
Trade and other receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Trade and other receivables [abstract] | ||
Trade receivables | $ 3,779 | $ 2,126 |
Value added taxes receivable | 2,751 | 1,638 |
Other receivables | 101 | 238 |
Trade and other receivables | $ 6,631 | $ 4,002 |
Inventories (Narrative) (Detail
Inventories (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
InventoriesLineItems [Line Items] | ||
Inventories recognized as an expense | $ 40 | $ 46.1 |
Concentrate [Member] | ||
InventoriesLineItems [Line Items] | ||
Inventory write-downs | 0.4 | 1 |
Spare Parts and Supplies [Member] | ||
InventoriesLineItems [Line Items] | ||
Inventory write-downs | $ 0.3 | $ 0.1 |
Inventories (Schedule of Invent
Inventories (Schedule of Inventories) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Classes of current inventories [abstract] | ||
Concentrates | $ 1,391 | $ 1,266 |
Ore stockpile | 2,877 | 161 |
Spare parts and supplies | 5,098 | 5,191 |
Inventories | $ 9,366 | $ 6,618 |
Property, plant and equipment48
Property, plant and equipment (Narrative) (Details) - USD ($) $ in Thousands | Mar. 02, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Jan. 01, 2018 | Dec. 01, 2017 |
Disclosure of detailed information about property, plant and equipment [line items] | ||||||||
Borrowing costs capitalized as property, plant and equipment | $ 700 | |||||||
Net book value transferred from non-producing properties to mining interests, net of pre-commercial production revenue | 31,600 | |||||||
Pre-commercial production revenue | 4,000 | |||||||
Impairment of property, plant and equipment | 204 | |||||||
Historical carrying value | $ 25,200 | |||||||
Santacruz Silver Mining Ltd [Member] | ||||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||||
Cash consideration | $ 15,000 | |||||||
Initial option payment | 5,000 | |||||||
Hochschild [Member] | ||||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||||
Initial option payment | 2,000 | |||||||
Final option payment | $ 8,000 | $ 8,000 | ||||||
Hochschild [Member] | Events After Reporting Period [Member] | ||||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||||
Final option payment | $ 6,000 | $ 1,000 | $ 500 | $ 500 |
Property, plant and equipment49
Property, plant and equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance | $ 80,548 | |
Impairments | 204 | |
Balance | 100,301 | 80,548 |
Cost [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance | 185,055 | 178,057 |
Asset additions | 19,557 | 7,972 |
Property purchase option acquired | 7,108 | |
Change in decommissioning provision | 1 | (891) |
Disposals | (83) | |
Reclassification | ||
Balance | 211,721 | 185,055 |
Accumulated depreciation and depletion [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance | 104,507 | 97,182 |
Depreciation/depletion for the year | 6,709 | 7,388 |
Impairments | 204 | |
Disposals | (63) | |
Balance | 111,420 | 104,507 |
Carrying value [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance | 80,548 | |
Balance | 100,301 | 80,548 |
Mining interests [Member] | Cost [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance | 67,571 | 63,954 |
Asset additions | 5,233 | 4,569 |
Property purchase option acquired | ||
Change in decommissioning provision | (37) | (952) |
Disposals | ||
Reclassification | 31,595 | |
Balance | 104,362 | 67,571 |
Mining interests [Member] | Accumulated depreciation and depletion [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance | 31,410 | 28,298 |
Depreciation/depletion for the year | 3,438 | 3,112 |
Impairments | ||
Disposals | ||
Balance | 34,848 | 31,410 |
Mining interests [Member] | Carrying value [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance | 36,161 | |
Balance | 69,514 | 36,161 |
Non-producing properties [Member] | Cost [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance | 77,390 | 75,746 |
Asset additions | 5,526 | 1,583 |
Property purchase option acquired | 7,108 | |
Change in decommissioning provision | 38 | 61 |
Disposals | ||
Reclassification | (31,595) | |
Balance | 58,467 | 77,390 |
Non-producing properties [Member] | Accumulated depreciation and depletion [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance | 50,502 | 50,502 |
Depreciation/depletion for the year | ||
Impairments | ||
Disposals | ||
Balance | 50,502 | 50,502 |
Non-producing properties [Member] | Carrying value [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance | 26,888 | |
Balance | 7,965 | 26,888 |
Plant and equipment [Member] | Cost [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance | 40,013 | 38,196 |
Asset additions | 8,795 | 1,817 |
Property purchase option acquired | ||
Change in decommissioning provision | ||
Disposals | ||
Reclassification | ||
Balance | 48,808 | 40,013 |
Plant and equipment [Member] | Accumulated depreciation and depletion [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance | 22,566 | 18,305 |
Depreciation/depletion for the year | 3,261 | 4,261 |
Impairments | 204 | |
Disposals | ||
Balance | 26,031 | 22,566 |
Plant and equipment [Member] | Carrying value [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance | 17,447 | |
Balance | 22,777 | 17,447 |
Corporate Office equipment [Member] | Cost [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance | 81 | 161 |
Asset additions | 3 | 3 |
Property purchase option acquired | ||
Change in decommissioning provision | ||
Disposals | (83) | |
Reclassification | ||
Balance | 84 | 81 |
Corporate Office equipment [Member] | Accumulated depreciation and depletion [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance | 29 | 77 |
Depreciation/depletion for the year | 10 | 15 |
Impairments | ||
Disposals | (63) | |
Balance | 39 | 29 |
Corporate Office equipment [Member] | Carrying value [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance | 52 | |
Balance | $ 45 | $ 52 |
Credit facilities (Narrative) (
Credit facilities (Narrative) (Details) CAD in Millions, $ in Millions | Oct. 03, 2016USD ($) | Sep. 26, 2016USD ($) | Mar. 30, 2017USD ($) | Feb. 11, 2016USD ($) | Nov. 10, 2015USD ($) | Aug. 07, 2013USD ($) | Aug. 07, 2013CAD |
Subordinated Secured Credit Facility [Member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Aggregate principal amount of notes | $ 2.9 | ||||||
Remaining principal portion of notes | $ 1.6 | ||||||
Interest rate | 10.00% | 12.00% | |||||
Subordinated, secured credit agreement, principal amount | $ 1 | ||||||
Repayment of principal of subordinated facility | $ 1.3 | $ 0.7 | |||||
RCM Credit Agreement [Member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Aggregate principal amount of notes | $ 6.4 | ||||||
Remaining principal portion of notes | $ 5.6 | ||||||
Interest rate | 12.00% | 12.00% | |||||
RCM Credit Agreement [Member] | Canadian Dollar [Member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Aggregate principal amount of notes | CAD | CAD 8.5 |
Pre-payment facility (Details)
Pre-payment facility (Details) - USD ($) $ in Millions | Mar. 30, 2017 | Dec. 31, 2017 |
Prepayment Facility [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Aggregate principal amount of debt | $ 15 | |
Annual principal repayment due 2018 | 4 | |
Annual principal repayment due 2019 | 5.5 | |
Annual principal repayment due 2020 | $ 5.5 | |
Promissory Note [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Aggregate principal amount of debt | $ 15 | |
Term loan | 4 years | |
Interest rate | 5.00% |
Post-employment benefit oblig52
Post-employment benefit obligations (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of defined benefit plans [line items] | ||
Increase (decrease) in defined benefit obligation that would have been caused by a 1% decrease in discount rate | $ 4,400 | $ 3,800 |
Increase (decrease) in defined benefit obligation that would have been caused by a 1% increase in discount rate | $ 100 | $ 100 |
Expected percentage return on plan assets | 4.30% | 4.20% |
Expected contributions to pension benefit plans | $ 800 | |
Actuarial gain (loss) on post-employment benefit obligations | $ (394) | $ 1,607 |
Expected average service life of active plan participants | 9 years | |
Bottom of range [member] | ||
Disclosure of defined benefit plans [line items] | ||
Increase (decrease) in defined benefit obligation | $ 26,700 | 26,700 |
Top of range [member] | ||
Disclosure of defined benefit plans [line items] | ||
Increase (decrease) in defined benefit obligation | $ 31,100 | $ 26,800 |
Post-employment benefit oblig53
Post-employment benefit obligations (Schedule of Amounts Recognized in Consolidated Statements of Financial Position) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of defined benefit plans [abstract] | ||
Present value of funded obligations | $ 26,730 | $ 23,910 |
Fair value of plan assets | 18,112 | 15,794 |
Deficit of funded plans | $ 8,618 | $ 8,116 |
Post-employment benefit oblig54
Post-employment benefit obligations (Schedule of Defined Benefit Obligations) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of net defined benefit liability (asset) [line items] | ||
Obligations, beginning of year | $ 23,910 | |
Obligations, end of year | 26,730 | $ 23,910 |
Defined Benefit Obligation [Member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Obligations, beginning of year | 23,910 | 24,495 |
Current service costs | 774 | 781 |
Interest costs | 999 | 1,057 |
Benefits paid | (901) | (830) |
Actuarial loss (gain) | 1,948 | (1,593) |
Obligations, end of year | $ 26,730 | $ 23,910 |
Post-employment benefit oblig55
Post-employment benefit obligations (Schedule of Movements in Fair Value of Plan Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of net defined benefit liability (asset) [line items] | ||
Assets, beginning of year | $ 15,794 | |
Assets, end of year | 18,112 | $ 15,794 |
Plan Assets [Member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Assets, beginning of year | 15,794 | 15,205 |
Return on assets | 678 | 648 |
Actuarial gain (loss) | 1,555 | 13 |
Employer contributions | 986 | 758 |
Benefits paid | (901) | (830) |
Assets, end of year | $ 18,112 | $ 15,794 |
Post-employment benefit oblig56
Post-employment benefit obligations (Amounts Recognized In Consolidated Statements of Loss and Comprehensive Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of defined benefit plans [abstract] | ||
Current service costs and interest costs included in cost of sales | $ 1,773 | $ 1,838 |
Post-employment benefit oblig57
Post-employment benefit obligations (Schedule of Principal Actuarial Assumptions) (Details) | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of defined benefit plans [abstract] | ||
Discount rate (expense) | 4.25% | 4.25% |
Discount rate (year end disclosures) | 3.75% | 4.25% |
Future salary increases (salaried plan only) | 5.00% | 5.00% |
Decommissioning provision (Narr
Decommissioning provision (Narrative) (Details) - Decommissioning Provision [Member] $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Disclosure of other provisions [line items] | |
Estimated undiscounted amount of decommissioning provision | $ 5.6 |
Bottom of range [member] | |
Disclosure of other provisions [line items] | |
Risk free rate used to discount decommissioning provision | 2.30% |
Term used to estimate decommissioning provision | 2 years |
Top of range [member] | |
Disclosure of other provisions [line items] | |
Risk free rate used to discount decommissioning provision | 7.60% |
Term used to estimate decommissioning provision | 12 years |
Decommissioning provision (Sche
Decommissioning provision (Schedule of Decomissioning Provision) (Details) - Decommissioning Provision [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of other provisions [line items] | ||
Provisions, beginning of year | $ 3,829 | $ 4,568 |
Decommissioning costs and change in estimates | (66) | (891) |
Accretion on decommissioning provision | 185 | 152 |
Provisions, end of year | $ 3,948 | $ 3,829 |
Share capital (Share Issuances)
Share capital (Share Issuances) (Narrative) (Details) | Jun. 14, 2016USD ($)sharesyr$ / shares | Jun. 14, 2016CAD / shares | Jun. 09, 2016USD ($)sharesyr$ / shares | Jun. 09, 2016CAD / shares | Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($) |
Disclosure of classes of share capital [line items] | |||||||
Shares and warrants issued on private placement, shares | shares | 3,210,416 | 5,555,555 | |||||
Shares and warrants issued on private placement, sales price per share | CAD / shares | CAD 3.60 | CAD 3.60 | |||||
Shares and warrants issued on private placement, proceeds | $ 9,000,000 | $ 15,700,000 | |||||
Warrants issued on private placement, exercise price per share | (per share) | $ 4.68 | 4.68 | |||||
Warrants issued on private placement, exercise period | yr | 5 | 5 | |||||
Number of shares reserved for issuance as a percent of total common shares issued and oustanding | 10.00% | ||||||
Maximum term of stock options | Under the plan, the Board of Directors determines the term of a stock option to a maximum of 10 years | ||||||
Weighted average fair value at grant | $ 1.58 | $ 1.08 | |||||
Shares outstanding, amount | $ 88,058,000 | $ 87,144,000 | $ 64,845,000 | ||||
Restricted Share [Member] | |||||||
Disclosure of classes of share capital [line items] | |||||||
Shares outstanding, share | shares | 208,722 | 351,856 | |||||
Shares outstanding, amount | $ 800,000 | $ 900,000 | |||||
Deferred Share Units [Member] | |||||||
Disclosure of classes of share capital [line items] | |||||||
Shares outstanding, share | shares | 286,920 | 240,313 | |||||
Shares outstanding, amount | $ 286,920 | $ 240,313 | |||||
Deferred Share Units [Member] | Bottom of range [member] | |||||||
Disclosure of classes of share capital [line items] | |||||||
Percentage of quarterly director fee payments earned as awards of deferred share units | 20.00% | ||||||
Deferred Share Units [Member] | Top of range [member] | |||||||
Disclosure of classes of share capital [line items] | |||||||
Percentage of quarterly director fee payments earned as awards of deferred share units | 100.00% | ||||||
Broker [Member] | |||||||
Disclosure of classes of share capital [line items] | |||||||
Shares and warrants issued on private placement, sales price per share | CAD / shares | CAD 4.20 | ||||||
Warrants issued on private placement, exercise price per share | $ / shares | $ 4.20 | $ 4.68 | |||||
Warrants issued on private placement, exercise period | yr | 2 | 2 | |||||
Common share purchase warrants issued on private placement | shares | 224,728 | 388,886 |
Share capital (Schedule of Shar
Share capital (Schedule of Share Capital) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of classes of share capital [abstract] | ||
Common shares issued, shares | 41,496,950 | 39,540,384 |
Common shares issued, value | $ 207,012 | $ 202,191 |
Share capital (Summary of Chang
Share capital (Summary of Changes in Company's Outstanding Stock Options) (Details) shares in Thousands | 12 Months Ended | |
Dec. 31, 2017CADshares | Dec. 31, 2016CADshares | |
Number | ||
Balance, beginning of year | shares | 1,771 | 1,516 |
Granted | shares | 1,058 | 808 |
Exercised | shares | (261) | (93) |
Expired | shares | (252) | (460) |
Balance, end of year | shares | 2,316 | 1,771 |
Weighted average exercise price | ||
Balance, beginning of year | CAD | CAD 4.64 | CAD 9.5 |
Granted | CAD | 3.86 | 2.09 |
Exercised | CAD | 3.22 | 3.12 |
Expired | CAD | 17.31 | 16.5 |
Balance, end of year | CAD | CAD 3.06 | CAD 4.64 |
Share capital (Schedule of Stoc
Share capital (Schedule of Stock Options Outstanding and Exercisable) (Details) shares in Thousands | Dec. 31, 2017CADsharesyr | Dec. 31, 2016CADshares | Dec. 31, 2015CADshares |
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Outstanding | shares | 2,316 | 1,771 | 1,516 |
Weighted average exercise price | CAD 3.06 | CAD 4.64 | CAD 9.5 |
Exercisable | shares | 1,341 | ||
Weighted average exercise price | CAD 2.84 | ||
CAD 2.00 to 3.00 [Member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Weighted average remaining contractual life (years) | yr | 0.78 | ||
Outstanding | shares | 1,163 | ||
Weighted average exercise price | CAD 2.14 | ||
Exercisable | shares | 899 | ||
Weighted average exercise price | CAD 2.17 | ||
CAD 2.00 to 3.00 [Member] | Bottom of range [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price | 2 | ||
CAD 2.00 to 3.00 [Member] | Top of range [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price | CAD 3 | ||
CAD 3.01 to 4.00 [Member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Weighted average remaining contractual life (years) | yr | 2.07 | ||
Outstanding | shares | 1,050 | ||
Weighted average exercise price | CAD 3.85 | ||
Exercisable | shares | 350 | ||
Weighted average exercise price | CAD 3.85 | ||
CAD 3.01 to 4.00 [Member] | Bottom of range [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price | 3.01 | ||
CAD 3.01 to 4.00 [Member] | Top of range [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price | CAD 4 | ||
CAD 4.01 to 5.00 [Member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Weighted average remaining contractual life (years) | yr | 1.75 | ||
Outstanding | shares | 25 | ||
Weighted average exercise price | CAD 4.59 | ||
Exercisable | shares | 14 | ||
Weighted average exercise price | CAD 4.63 | ||
CAD 4.01 to 5.00 [Member] | Bottom of range [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price | 4.01 | ||
CAD 4.01 to 5.00 [Member] | Top of range [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price | CAD 5 | ||
CAD 5.01 to 6.00 [Member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Weighted average remaining contractual life (years) | yr | 0.41 | ||
Outstanding | shares | 78 | ||
Weighted average exercise price | CAD 5.65 | ||
Exercisable | shares | 78 | ||
Weighted average exercise price | CAD 5.65 | ||
CAD 5.01 to 6.00 [Member] | Bottom of range [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price | 5.01 | ||
CAD 5.01 to 6.00 [Member] | Top of range [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price | CAD 6 |
Share capital (Schedule of Fair
Share capital (Schedule of Fair Value Weighted-average Assumptions) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)yr | Dec. 31, 2016USD ($)yr | ||
Disclosure of classes of share capital [abstract] | |||
Expected stock price volatility | [1] | 83.00% | 83.00% |
Risk free interest rate | 0.87% | 0.47% | |
Expected life | yr | 3 | 3 | |
Expected forfeiture rate | 4.18% | 4.97% | |
Expected dividend yield | 0.00% | 0.00% | |
Share-based payments included in cost of sales | $ 19 | ||
Share-based payments included in general and administrative expenses | 1,491 | 566 | |
Total share-based payments | $ 1,491 | $ 585 | |
[1] | Expected volatility has been based on historical volatility of the Company's publicly traded shares. |
Share capital (Schedule of Warr
Share capital (Schedule of Warrants Issued and Outstanding) (Details) | 12 Months Ended |
Dec. 31, 2017CADshares | |
Disclosure of range of exercise prices of outstanding share options [line items] | |
Number of warrants | 5,167,391 |
CAD 4.68 Issued Jul 2016 [Member] | |
Disclosure of range of exercise prices of outstanding share options [line items] | |
Number of warrants | 742,883 |
Exercise price | CAD | CAD 4.68 |
Issuance date | Jul 2,016 |
Expiry date | Jun 14, 2021 |
CAD 4.20 Issued Jul 2016 [Member] | |
Disclosure of range of exercise prices of outstanding share options [line items] | |
Number of warrants | 224,728 |
Exercise price | CAD | CAD 4.2 |
Issuance date | Jul 2,016 |
Expiry date | Jun 14, 2018 |
CAD 4.68 Issued Jun 2016 [Member] | |
Disclosure of range of exercise prices of outstanding share options [line items] | |
Number of warrants | 1,350,204 |
Exercise price | CAD | CAD 4.68 |
Issuance date | Jun 2,016 |
Expiry date | Jun 9, 2021 |
CAD 4.20 Issued Jun 2016 [Member] | |
Disclosure of range of exercise prices of outstanding share options [line items] | |
Number of warrants | 388,886 |
Exercise price | CAD | CAD 4.2 |
Issuance date | Jun 2,016 |
Expiry date | Jun 9, 2018 |
CAD 1.20 Issued Feb 2016 [Member] | |
Disclosure of range of exercise prices of outstanding share options [line items] | |
Number of warrants | 1,537,355 |
Exercise price | CAD | CAD 1.2 |
Issuance date | Feb 2,016 |
Expiry date | Feb 10, 2019 |
CAD 1.20 Issued Nov 2015 [Member] | |
Disclosure of range of exercise prices of outstanding share options [line items] | |
Number of warrants | 307,777 |
Exercise price | CAD | CAD 1.2 |
Issuance date | Nov 2,015 |
Expiry date | Nov 10, 2018 |
CAD 1.56 Issued Aug 2015 [Member] | |
Disclosure of range of exercise prices of outstanding share options [line items] | |
Number of warrants | 29,166 |
Exercise price | CAD | CAD 1.56 |
Issuance date | Aug 2,015 |
Expiry date | Aug 26, 2018 |
CAD 3.00 Issued Aug 2015 [Member] | |
Disclosure of range of exercise prices of outstanding share options [line items] | |
Number of warrants | 190,906 |
Exercise price | CAD | CAD 3 |
Issuance date | Aug 2,015 |
Expiry date | Aug 26, 2018 |
CAD 1.56 Issued May 2015 [Member] | |
Disclosure of range of exercise prices of outstanding share options [line items] | |
Number of warrants | 395,486 |
Exercise price | CAD | CAD 1.56 |
Issuance date | May 2,015 |
Expiry date | May 27, 2018 |
Share capital (Schedule of Wa66
Share capital (Schedule of Warrant Issuances) (Narrative) (Details) | 1 Months Ended | |
Jul. 31, 2016CADsharesyr | Jun. 30, 2016CADsharesyr | |
Broker Warrants [Member] | ||
Disclosure of classes of share capital [line items] | ||
Warrants granted | shares | 224,728 | 388,886 |
Exercise price of warrants granted | CAD | CAD 4.2 | CAD 4.2 |
Exercise period of warrants granted | yr | 2 | 2 |
Broker Units [Member] | ||
Disclosure of classes of share capital [line items] | ||
Exercise price of warrants granted | CAD | CAD 4.68 | CAD 4.68 |
Exercise period of warrants granted | yr | 5 | 5 |
Weighted average basic and di67
Weighted average basic and diluted number of common shares outstanding (Details) - shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | ||
Basic weighted average number of shares | 40,194,660 | 34,526,435 |
Effect of dilutive stock options and warrants | ||
Diluted weighted average number of shares | 40,194,660 | 34,526,435 |
Stock option [Member] | ||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | ||
Diluted weighted average number of shares | 2,316,264 | 1,770,765 |
Warrant [Member] | ||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | ||
Diluted weighted average number of shares | 5,167,391 | 6,862,508 |
Cost of sales (Details)
Cost of sales (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of cost of sales [abstract] | ||
Salaries and employee benefits | $ 22,314 | $ 23,430 |
Raw materials and consumables | 14,252 | 15,065 |
Utilities | 3,902 | 4,113 |
Other costs | 2,318 | 1,768 |
Changes in inventories | (2,748) | 1,769 |
Cost of sales | $ 40,038 | $ 46,145 |
Corporate general and adminis69
Corporate general and administrative expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Corporate general and administrative expenses [abstract] | ||
Salaries and benefits | $ 2,173 | $ 2,153 |
Directors' fees | 269 | 251 |
Share-based payments | 1,930 | 1,237 |
Professional fees | 477 | 639 |
Office and general | 1,802 | 1,075 |
Corporate general and administrative expenses | $ 6,651 | $ 5,355 |
Income taxes (Narrative) (Detai
Income taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [abstract] | ||
Corporate income tax rate | 21.00% | 35.00% |
Deferred tax asset | $ 654 | $ 138 |
Income taxes (Schedule of Compo
Income taxes (Schedule of Components of Income Tax Expense (Recovery)) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [abstract] | ||
Current income tax expense | $ 161 | |
Deferred income tax expense (recovery) | (588) | 210 |
Income tax expense (recovery) | $ (427) | $ 210 |
Income taxes (Schedule of Recon
Income taxes (Schedule of Reconciliation of Effective Tax Rate) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [abstract] | ||
Statutory tax rate | 26.50% | 26.50% |
Tax recovery at statutory rates | $ (1,032) | $ (1,330) |
Mexican mining royalty | 199 | 210 |
Impact of foreign tax rates | 18 | 215 |
Non-deductible expenses | 535 | 1,477 |
Alternative minimum tax credits | (626) | |
Losses not recognized (recognized) | 479 | (362) |
Income tax expense (recovery) | $ (427) | $ 210 |
Income taxes (Schedule of Com73
Income taxes (Schedule of Components of Deferred Tax Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Income Taxes [abstract] | ||
Property, plant and equipment | $ 900 | $ 972 |
Deferred tax liabilities | 900 | 972 |
Alternative minimum tax credits | 626 | |
Other | 28 | 138 |
Total deferred tax assets | 654 | 138 |
Net deferred tax liabilities | $ 246 | $ 834 |
Income taxes (Components of Def
Income taxes (Components of Deferred Income Taxes not Recognized in Repect to Deductible Temporary Differences) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Total deferred income taxes not recognized from temporary differences and unused tax losses as future utilization is not considered probable | $ 140,804 | $ 141,558 |
Temporary Differences - Property, Plant and Equipment [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred income taxes not recognized from temporary differences as future utilization is not considered probable | 4,890 | 3,272 |
Mexican Tax Losses (expiring in 2018 - 2027) [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred income taxes not recognized from tax losses as future utilization is not considered probable | 42,843 | 52,702 |
Canadien Tax Losses (expiring in 2029 - 2037) [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred income taxes not recognized from tax losses as future utilization is not considered probable | 35,173 | 30,268 |
U.S. Tax Losses (expiring in 2020 - 2037) [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred income taxes not recognized from tax losses as future utilization is not considered probable | 32,070 | 29,764 |
Provisions and Other [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred income taxes not recognized from temporary differences as future utilization is not considered probable | 24,956 | 24,718 |
Deferred Mexican Mining Royalty [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred income taxes not recognized from temporary differences as future utilization is not considered probable | $ 872 | $ 834 |
Related party transactions (Det
Related party transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of transactions between related parties [abstract] | ||
Salaries and benefits | $ 888 | $ 860 |
Severance | 75 | |
Directors' fees | 269 | 251 |
Share-based payments | $ 1,617 | $ 968 |
Financial risk management (Narr
Financial risk management (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Credit risk [Member] | Trade and other receivables [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Risk exposure associated with instrument | $ 3.8 | $ 2.1 |
Credit risk [Member] | Mexican Value Added Taxes [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Risk exposure associated with instrument | 2.8 | 1.6 |
Silver, Zinc, Lead and Copper Prices [Member] | Trade and other receivables [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Risk exposure associated with instrument | $ 0.4 | $ 0.2 |
Financial risk management (Sche
Financial risk management (Schedule of Contractual Maturities of Financial Liabilities) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Trade and other payables | $ 10,393 |
Per-payment facilities | 15,000 |
Interest on credit facilities | 1,601 |
Leases | 1,438 |
Other long-term liabilities | 564 |
Total contractual maturities of financial liabilities on an undiscounted basis | 28,996 |
Less than 1 year [Member] | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Trade and other payables | 10,393 |
Per-payment facilities | 4,000 |
Interest on credit facilities | 856 |
Leases | 290 |
Other long-term liabilities | |
Total contractual maturities of financial liabilities on an undiscounted basis | 15,539 |
2 - 3 Years [Member] | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Trade and other payables | |
Per-payment facilities | 11,000 |
Interest on credit facilities | 745 |
Leases | 563 |
Other long-term liabilities | 95 |
Total contractual maturities of financial liabilities on an undiscounted basis | 12,403 |
4 - 5 Years [Member] | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Trade and other payables | |
Per-payment facilities | |
Interest on credit facilities | |
Leases | 540 |
Other long-term liabilities | |
Total contractual maturities of financial liabilities on an undiscounted basis | 540 |
Over 5 Years [Member] | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Trade and other payables | |
Per-payment facilities | |
Interest on credit facilities | |
Leases | 45 |
Other long-term liabilities | 469 |
Total contractual maturities of financial liabilities on an undiscounted basis | $ 514 |
Financial risk management (Sc78
Financial risk management (Schedule of Currency Risks) (Details) - Currency risk [Member] MXN in Thousands, CAD in Thousands | 12 Months Ended | ||
Dec. 31, 2017CADCAD / $MXN / $ | Dec. 31, 2017MXN | Dec. 31, 2017MXNCAD / $MXN / $ | |
Canadian Dollar [Member] | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Approximate impact of exchange rate fluctuations on net loss | CAD | CAD 732 | ||
Approximate impact of exchange rate fluctuations on other comprehensive loss | CAD | CAD (93) | ||
Foreign exchange rates | CAD / $ | 1.25 | 1.25 | |
Mexican Peso [Member] | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Approximate impact of exchange rate fluctuations on net loss | MXN | MXN 850 | ||
Approximate impact of exchange rate fluctuations on other comprehensive loss | MXN | MXN 110 | ||
Foreign exchange rates | MXN / $ | 19.74 | 19.74 | |
Cash and Cash Equivalents [Member] | Canadian Dollar [Member] | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Risk from currency fluctuations yet to be recognized in net earnings or other comprehensive income | CAD | CAD 1,436 | ||
Cash and Cash Equivalents [Member] | Mexican Peso [Member] | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Risk from currency fluctuations yet to be recognized in net earnings or other comprehensive income | MXN | MXN 1,681 | ||
Trade and other receivables [Member] | Canadian Dollar [Member] | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Risk from currency fluctuations yet to be recognized in net earnings or other comprehensive income | CAD | 19 | ||
Trade and other receivables [Member] | Mexican Peso [Member] | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Risk from currency fluctuations yet to be recognized in net earnings or other comprehensive income | MXN | 2,814 | ||
Trade and Other Payables [Member] | Canadian Dollar [Member] | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Risk from currency fluctuations yet to be recognized in net earnings or other comprehensive income | CAD | CAD 1,831 | ||
Trade and Other Payables [Member] | Mexican Peso [Member] | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Risk from currency fluctuations yet to be recognized in net earnings or other comprehensive income | MXN | MXN 4,385 |
Financial risk management (Sc79
Financial risk management (Schedule of Fair Value Measurements) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of fair value measurement of assets [line items] | |||
Cash and cash equivalents | $ 9,325 | $ 24,055 | $ 1,319 |
Restricted cash | 331 | 151 | |
Available-for-sale investment | 503 | ||
Long-term investments | 4 | 28 | |
Trade and other receivables | 6,631 | 4,002 | |
Pre-payment facility | 15,000 | ||
Level 1 [Member] | |||
Disclosure of fair value measurement of assets [line items] | |||
Cash and cash equivalents | 9,325 | 24,055 | |
Restricted cash | 331 | 151 | |
Available-for-sale investment | 503 | ||
Long-term investments | 4 | 28 | |
Level 2 [Member] | |||
Disclosure of fair value measurement of assets [line items] | |||
Trade and other receivables | 6,631 | 4,002 | |
Credit facilities | 7,758 | ||
Pre-payment facility | $ 15,000 |
Segmented and geographic info80
Segmented and geographic information, and major customers (Statements of Financial Position) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of operating segments [line items] | |||
Cash and cash equivalents | $ 9,325 | $ 24,055 | $ 1,319 |
Trade and other receivables | 6,631 | 4,002 | |
Inventories | 9,366 | 6,618 | |
Prepaid expenses | 869 | 1,385 | |
Available-for-sale investment | 503 | ||
Restricted cash | 331 | 151 | |
Long-term investments | 4 | 28 | |
Property, plant and equipment | 100,301 | 80,548 | |
Total assets | 126,827 | 117,290 | |
Trade and other payables | 10,393 | 8,727 | |
Other long-term liabilities | 564 | 882 | |
Credit facilities | 7,758 | ||
Pre-payment facility | 15,000 | ||
Post-employment benefit obligations | 8,618 | 8,116 | |
Decommissioning provision | 3,948 | 3,829 | |
Deferred tax liabilities (assets) | 246 | 834 | |
Total liabilities | 38,769 | 30,146 | |
Mexican Operations [Member] | |||
Disclosure of operating segments [line items] | |||
Cash and cash equivalents | 5,963 | 1,875 | |
Trade and other receivables | 4,901 | 2,855 | |
Inventories | 6,301 | 3,738 | |
Prepaid expenses | 346 | 840 | |
Available-for-sale investment | |||
Restricted cash | 160 | ||
Long-term investments | |||
Property, plant and equipment | 59,686 | 42,474 | |
Total assets | 77,357 | 51,782 | |
Trade and other payables | 5,893 | 4,144 | |
Other long-term liabilities | |||
Credit facilities | |||
Pre-payment facility | 15,000 | ||
Post-employment benefit obligations | |||
Decommissioning provision | 1,904 | 1,834 | |
Deferred tax liabilities (assets) | 872 | 834 | |
Total liabilities | 23,669 | 6,812 | |
U.S. Operations [Member] | |||
Disclosure of operating segments [line items] | |||
Cash and cash equivalents | 1,791 | 3,511 | |
Trade and other receivables | 1,711 | 1,106 | |
Inventories | 3,065 | 2,880 | |
Prepaid expenses | 305 | 353 | |
Available-for-sale investment | |||
Restricted cash | 171 | 151 | |
Long-term investments | |||
Property, plant and equipment | 40,570 | 38,022 | |
Total assets | 47,613 | 46,023 | |
Trade and other payables | 2,608 | 2,422 | |
Other long-term liabilities | 469 | 448 | |
Credit facilities | |||
Pre-payment facility | |||
Post-employment benefit obligations | 8,618 | 8,116 | |
Decommissioning provision | 2,044 | 1,995 | |
Deferred tax liabilities (assets) | (626) | ||
Total liabilities | 13,113 | 12,981 | |
Corporate and Other [Member] | |||
Disclosure of operating segments [line items] | |||
Cash and cash equivalents | 1,571 | 18,669 | |
Trade and other receivables | 19 | 41 | |
Inventories | |||
Prepaid expenses | 218 | 192 | |
Available-for-sale investment | 503 | ||
Restricted cash | |||
Long-term investments | 4 | 28 | |
Property, plant and equipment | 45 | 52 | |
Total assets | 1,857 | 19,485 | |
Trade and other payables | 1,892 | 2,161 | |
Other long-term liabilities | 95 | 434 | |
Credit facilities | 7,758 | ||
Pre-payment facility | |||
Post-employment benefit obligations | |||
Decommissioning provision | |||
Deferred tax liabilities (assets) | |||
Total liabilities | $ 1,987 | $ 10,353 |
Segmented and geographic info81
Segmented and geographic information, and major customers (Statements of Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of operating segments [line items] | ||
Revenue | $ 54,280 | $ 58,866 |
Cost of sales | (40,038) | (46,145) |
Depletion and amortization | (6,709) | (7,388) |
Care, maintenance and restructuring costs | (701) | (993) |
Corporate general and administrative | (6,651) | (5,355) |
Exploration costs | (2,726) | (1,681) |
Accretion on decommissioning provision | (185) | (152) |
Interest and financing income (expense) | (723) | (2,337) |
Foreign exchange gain (loss) | (225) | 340 |
Loss on disposal of assets | (20) | |
Loss on available-for-sale investment | (11) | (132) |
Write-down of equipment | (204) | |
Income (loss) before income taxes | (3,893) | (4,997) |
Income tax recovery (expense) | 427 | (210) |
Net Income (loss) for the year | (3,466) | (5,207) |
Mexican Operations [Member] | ||
Disclosure of operating segments [line items] | ||
Revenue | 21,512 | 23,322 |
Cost of sales | (10,195) | (17,679) |
Depletion and amortization | (3,247) | (3,534) |
Care, maintenance and restructuring costs | (60) | (399) |
Corporate general and administrative | ||
Exploration costs | (2,407) | (690) |
Accretion on decommissioning provision | (144) | (112) |
Interest and financing income (expense) | (35) | 2 |
Foreign exchange gain (loss) | (308) | 384 |
Loss on disposal of assets | ||
Loss on available-for-sale investment | ||
Write-down of equipment | ||
Income (loss) before income taxes | 5,116 | 1,294 |
Income tax recovery (expense) | (219) | (210) |
Net Income (loss) for the year | 4,897 | 1,084 |
U.S. Operations [Member] | ||
Disclosure of operating segments [line items] | ||
Revenue | 32,768 | 35,544 |
Cost of sales | (29,843) | (28,466) |
Depletion and amortization | (3,452) | (3,839) |
Care, maintenance and restructuring costs | (473) | (495) |
Corporate general and administrative | ||
Exploration costs | (319) | (991) |
Accretion on decommissioning provision | (41) | (40) |
Interest and financing income (expense) | ||
Foreign exchange gain (loss) | ||
Loss on disposal of assets | ||
Loss on available-for-sale investment | ||
Write-down of equipment | ||
Income (loss) before income taxes | (1,564) | 1,713 |
Income tax recovery (expense) | 646 | |
Net Income (loss) for the year | (918) | 1,713 |
Corporate and Other [Member] | ||
Disclosure of operating segments [line items] | ||
Revenue | ||
Cost of sales | ||
Depletion and amortization | (10) | (15) |
Care, maintenance and restructuring costs | (168) | (99) |
Corporate general and administrative | (6,651) | (5,355) |
Exploration costs | ||
Accretion on decommissioning provision | ||
Interest and financing income (expense) | (688) | (2,339) |
Foreign exchange gain (loss) | 83 | (44) |
Loss on disposal of assets | (20) | |
Loss on available-for-sale investment | (11) | (132) |
Write-down of equipment | ||
Income (loss) before income taxes | (7,455) | (8,004) |
Income tax recovery (expense) | ||
Net Income (loss) for the year | $ (7,455) | $ (8,004) |
Segmented and geographic info82
Segmented and geographic information, and major customers (Major Customers) (Details) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Major Customer One [Member] | ||
Disclosure of major customers [line items] | ||
Percentage of revenue | 60.00% | 59.00% |
Major Customer Two [Member] | ||
Disclosure of major customers [line items] | ||
Percentage of revenue | 40.00% | 31.00% |
Major Customer Three [Member] | ||
Disclosure of major customers [line items] | ||
Percentage of revenue | 9.00% | |
Major Customer Four [Member] | ||
Disclosure of major customers [line items] | ||
Percentage of revenue | 1.00% |
Capital management (Details)
Capital management (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of objectives, policies and processes for managing capital [abstract] | ||
Equity attributable to shareholders of the Company | $ 88,058 | $ 87,144 |
Contingencies (Details)
Contingencies (Details) - Tax contingent liability [Member] MXN in Millions, $ in Millions | Dec. 31, 2017USD ($) | Dec. 31, 2017MXN | Nov. 30, 2010USD ($) | Nov. 30, 2010MXN |
Disclosure of contingent liabilities [line items] | ||||
Amount of tax deduction disallowed by Mexican tax authorities | $ | $ 10 | |||
Amount of tax deduction disallowed by Mexican tax authorities that would be applied against available tax losses | $ | 4.3 | |||
Amount of tax deduction disallowed by Mexican tax authorities, subsequently reversed | $ | $ 4.8 | |||
Portion of disputed tax deduction remaining relating to transactions with certain suppliers | $ | $ 5.2 | |||
Portion of disputed tax deduction remaining relating to value added taxes | $ | 0.9 | |||
Value of bond that may be required to secure value added tax portion | $ | $ 0.9 | |||
Mexican Peso [Member] | ||||
Disclosure of contingent liabilities [line items] | ||||
Amount of tax deduction disallowed by Mexican tax authorities | MXN | MXN 196.8 | |||
Amount of tax deduction disallowed by Mexican tax authorities that would be applied against available tax losses | MXN | 84.4 | |||
Amount of tax deduction disallowed by Mexican tax authorities, subsequently reversed | MXN | MXN 94.6 | |||
Portion of disputed tax deduction remaining relating to transactions with certain suppliers | MXN | MXN 102.2 | |||
Portion of disputed tax deduction remaining relating to value added taxes | MXN | 17.8 | |||
Value of bond that may be required to secure value added tax portion | MXN | MXN 17.8 |