Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2018shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | Pretium Resources Inc. |
Entity Central Index Key | 0001508844 |
Document Type | 40-F |
Document Period End Date | Dec. 31, 2018 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Current Reporting Status | Yes |
Entity Emerging Growth Company | false |
Entity Common Stock, Shares Outstanding | 184,163,091 |
Document Fiscal Year Focus | 2018 |
Document Fiscal Period Focus | FY |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 45,407 | $ 56,285 |
Receivables and other | 18,312 | 19,551 |
Inventories | 24,751 | 25,673 |
Total current assets | 88,470 | 101,509 |
Non-current assets | ||
Mineral properties, plant and equipment | 1,522,919 | 1,564,860 |
Other assets | 132 | |
Restricted cash | 2,029 | 5,036 |
Total assets | 1,613,418 | 1,671,537 |
Current liabilities | ||
Accounts payable and accrued liabilities | 50,672 | 60,438 |
Current portion of long-term debt | 85,961 | 374,966 |
Income taxes payable | 379 | |
Flow-through share premium | 135 | |
Total current liabilities | 136,633 | 435,918 |
Non-current liabilities | ||
Other liabilities | 1,072 | 511 |
Long-term debt | 456,254 | 293,029 |
Convertible notes | 82,150 | 76,582 |
Decommissioning and restoration provision | 18,947 | 18,436 |
Deferred income tax liability | 15,236 | |
Total liabilities | 710,292 | 824,476 |
EQUITY | ||
Share capital | 1,140,890 | 1,125,932 |
Contributed surplus | 48,886 | 49,942 |
Equity component of convertible notes | 17,603 | 17,603 |
Accumulated other comprehensive loss | (193,997) | (193,772) |
Deficit | (110,256) | (152,644) |
Total equity | 903,126 | 847,061 |
Total liabilities and equity | 1,613,418 | 1,671,537 |
Commitments | ||
Contingencies |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) AND COMPREHENSIVE EARNINGS (LOSS) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) AND COMPREHENSIVE EARNINGS (LOSS) | ||
Revenue | $ 454,556 | $ 177,933 |
Cost of sales | 303,927 | 125,080 |
Earnings from mine operations | 150,629 | 52,853 |
Corporate administrative costs | 15,788 | 18,816 |
Operating earnings | 134,841 | 34,037 |
Interest and finance expense | (66,926) | (30,655) |
Interest and finance income | 2,728 | 527 |
Foreign exchange gain (loss) | (46) | 667 |
Loss on financial instruments at fair value | (17,113) | (26,430) |
Earnings (loss) before taxes | 53,484 | (21,854) |
Current income tax expense | (4,196) | (1,621) |
Deferred income tax (expense) recovery | (12,668) | 7,022 |
Net earnings (loss) for the year | 36,620 | (16,453) |
Items that will not be reclassified to earnings or loss: | ||
Change in fair value attributable to change in credit risk of financial instruments designated at fair value through profit or loss | 5,543 | |
Comprehensive earnings (loss) for the year | $ 42,163 | $ (16,453) |
Earnings (loss) per common share | ||
Basic (in dollar per share) | $ 0.20 | $ (0.09) |
Diluted (in dollar per share) | $ 0.20 | $ (0.09) |
Weighted average number of common shares outstanding | ||
Basic (in dollar per share) | 182,905,004 | 181,208,295 |
Diluted (in dollar per share) | 183,881,917 | 181,208,295 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net earnings (loss) for the year | $ 36,620 | $ (16,453) |
Items not affecting cash: | ||
Current income tax expense | 4,196 | 1,621 |
Deferred income tax expense (recovery) | 12,668 | (7,022) |
Depreciation and depletion | 67,466 | 25,518 |
Interest and finance expense, net | 63,686 | 29,970 |
Loss on financial instruments at fair value | 17,113 | 26,430 |
Settlement of offtake obligation | (4,423) | (1,543) |
Share-based compensation | 6,472 | 5,673 |
Unrealized foreign exchange loss (gain) | 457 | (2,823) |
Changes in non-cash working capital items: | ||
Receivables and other | 1,389 | (8,815) |
Inventories | 1,047 | (12,573) |
Accounts payable and accrued liabilities | (4,872) | 34,580 |
Income taxes paid | (4,575) | (1,242) |
Net cash generated by operating activities | 197,244 | 73,321 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Common shares issued | 2,304 | 3,891 |
Finance lease payments | (402) | |
Proceeds from convertible notes, net | 95,795 | |
Proceeds from credit facility, net | 97,000 | |
Proceeds from exercise of stock options | 8,353 | 13,894 |
Proceeds from loan facility | 480,000 | |
Repayment of credit facility | (350,000) | |
Repurchase of stream obligation | (237,000) | |
Share issue costs | (31) | (225) |
Transaction costs associated with a loan facility | (7,616) | |
Interest paid | (75,006) | (1,319) |
Net cash generated by (used in) financing activities | (179,398) | 209,036 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Expenditures on mineral properties, plant and equipment | (32,892) | (375,408) |
Restricted cash | 2,830 | 4,380 |
Interest received | 2,728 | 527 |
Net cash used in investing activities | (27,334) | (370,501) |
Decrease in cash and cash equivalents for the year | (9,488) | (88,144) |
Cash and cash equivalents, beginning of the year | 56,285 | 141,791 |
Effect of foreign exchange rate changes on cash and cash equivalents | (1,390) | 2,638 |
Cash and cash equivalents, end of the year | $ 45,407 | $ 56,285 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) | Common Shares | Share capital | Contributed surplus | Equity component of convertible notes | Accumulated other comprehensive lossRestatement Adjustment | Accumulated other comprehensive loss | DeficitRestatement Adjustment | Deficit | Total |
Balance at the beginning of the year at Dec. 31, 2016 | $ 1,101,428,000 | $ 53,072,000 | $ (193,772,000) | $ (136,191,000) | $ 824,537,000 | ||||
Balance at the beginning of the year (in shares at Dec. 31, 2016 | 180,113,252 | ||||||||
Shares issued upon exercise of options | 20,757,000 | (6,863,000) | 13,894,000 | ||||||
Shares issued upon exercise of options (in shares) | 1,822,025 | ||||||||
Shares issued under flow-through agreement | 3,182,000 | 3,182,000 | |||||||
Shares issued under flow-through agreement (in shares) | 329,000 | ||||||||
Share issue costs, net of taxes | (167,000) | (167,000) | |||||||
Value assigned to options vested | 3,733,000 | 3,733,000 | |||||||
Shares issued upon settlement of restricted share units | 731,000 | 731,000 | |||||||
Shares issued upon settlement of restricted share units (in shares) | 73,597 | ||||||||
Equity component of convertible notes, net of taxes | $ 17,603,000 | 17,603,000 | |||||||
Earnings (Loss) for the year | (16,453,000) | (16,453,000) | |||||||
Balance at the end of the year at Dec. 31, 2017 | $ 182,337,874 | 1,125,932,000 | 49,942,000 | 17,603,000 | $ (199,540,000) | (193,772,000) | $ (146,876,000) | (152,644,000) | 847,061,000 |
Balance at the end of the year (in shares) at Dec. 31, 2017 | 182,337,874 | ||||||||
Adjustment on adoption of IFRS 9, net of tax | $ (5,768,000) | $ 5,768,000 | |||||||
Shares issued upon exercise of options | 12,911,000 | (4,558,000) | 8,353,000 | ||||||
Shares issued upon exercise of options (in shares) | 1,576,500 | ||||||||
Shares issued under flow-through agreement | 1,913,000 | 1,913,000 | |||||||
Shares issued under flow-through agreement (in shares) | 227,273 | ||||||||
Share issue costs, net of taxes | (23,000) | (23,000) | |||||||
Value assigned to options vested | 3,502,000 | 3,502,000 | |||||||
Shares issued upon settlement of restricted share units | 157,000 | 157,000 | |||||||
Shares issued upon settlement of restricted share units (in shares) | 21,444 | ||||||||
Other comprehensive earnings for the year | 5,543,000 | 5,543,000 | |||||||
Earnings (Loss) for the year | 36,620,000 | 36,620,000 | |||||||
Balance at the end of the year at Dec. 31, 2018 | $ 1,140,890,000 | $ 48,886,000 | $ 17,603,000 | $ (193,997,000) | $ (110,256,000) | $ 903,126,000 | |||
Balance at the end of the year (in shares) at Dec. 31, 2018 | 184,163,091 |
NATURE OF OPERATIONS
NATURE OF OPERATIONS | 12 Months Ended |
Dec. 31, 2018 | |
NATURE OF OPERATIONS | |
NATURE OF OPERATIONS | 1. NATURE OF OPERATIONS Pretium Resources Inc. (the "Company") was incorporated under the laws of the Province of British Columbia, Canada on October 22, 2010. The address of the Company’s registered office is Suite 2300, Four Bentall Centre, 1055 Dunsmuir Street, PO Box 49334, Vancouver, BC, V7X 1L4. The Company was formed for the acquisition, exploration, development and operation of precious metal resource properties in the Americas. The Company’s primary asset is its wholly-owned underground Brucejack Mine located in northwestern British Columbia. |
BASIS OF PREPARATION
BASIS OF PREPARATION | 12 Months Ended |
Dec. 31, 2018 | |
BASIS OF PREPARATION | |
BASIS OF PREPARATION | 2. BASIS OF PREPARATION Statement of compliance and basis of presentation These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board. These consolidated financial statements have been prepared on a historical cost basis except for financial instruments classified as fair value through profit or loss (“FVTPL”), which are stated at their fair value. These consolidated financial statements were authorized for issue by the Board of Directors on February 14, 2019. Change in accounting policies – IFRS 9, Financial Instruments The Company has adopted IFRS 9 effective January 1, 2018. IFRS 9 replaces the provisions of IAS 39, Financial Instruments : Recognition and Measurement (“IAS 39”) that relate to the recognition, classification and measurement of financial assets and financial liabilities, de-recognition of financial instruments, impairment of financial assets and hedge accounting. Classification of financial assets and financial liabilities IFRS 9 contains three principal classification categories for financial assets: measured at amortized cost, fair value through other comprehensive income (“FVOCI”) or FVTPL. The classification of financial assets under IFRS 9 is generally based on the business model in which the financial asset is managed and its contractual cash flow characteristics. IFRS 9 eliminates the previous IAS 39 categories of held to maturity, loans and receivables and available for sale. The Company did not have any items classified as held to maturity or available for sale. Items classified as loans and receivables were recorded under IFRS 9 at amortized cost. Under IFRS 9, derivatives embedded in contracts where the host is a financial asset in the scope of the standard are never separated. Instead, the financial instrument as a whole is assessed for classification. IFRS 9 retains the existing requirements in IAS 39 for the classification of financial liabilities. Under IAS 39, all fair value changes on liabilities designated under the fair value option were recognized in earnings (loss). Under IFRS 9, those fair value changes are generally presented as follows: (i) the amount that is attributable to changes in the credit risk of the liabilities is presented in other comprehensive income (loss) (“OCI”) and (ii) the remaining amount of change in the fair value is presented in earnings (loss). Impairment of financial assets IFRS 9 replaces the incurred loss model in IAS 39 with an expected credit loss (“ECL”) model which is based on forward looking changes in credit quality since initial recognition. The ECL model requires judgment as to how changes in economic factors affect ECLs, which are determined on a probability-weighted basis. The new impairment model applies to financial assets measured at amortized cost and debt investments at FVOCI, but not to investments in equity instruments. Under IFRS 9, credit losses are recognized earlier than under IAS 39. Transition to IFRS 9 In accordance with the transitional provisions in IFRS 9, comparative figures have not been restated. On adoption of IFRS 9, there were no differences in the carrying amounts of the Company’s financial assets and financial liabilities. There was a presentation change related to changes in fair value of the Company’s stream obligation which resulted in a reclassification of $7,901 ($5,768 net of deferred tax) from deficit to accumulated other comprehensive earnings (loss) (“AOCI”) at January 1, 2018. IFRS 9 requires the gain or loss associated with changes in the fair value of the stream obligation to be recorded in earnings (loss), except for changes in fair value attributable to changes in the credit risk of the liability, which must be presented in OCI. The liability’s credit risk is represented by the difference between the discount rate associated with the liability and the risk-free rate. To determine the cumulative impact of changes in the credit risk of the liability upon the adoption of IFRS 9, the Company compared the fair value of the pre-payable financial liability, excluding the gold and silver embedded derivatives, with a comparable value derived by substituting the current credit risk assumption with that used by the Company in determining the fair value of the stream obligation at inception. As a result of an overall reduction in the Company’s credit risk since inception, the Company reclassified $7,901 ($5,768 net of deferred tax) from deficit to AOCI at January 1, 2018. As the stream obligation was repaid pursuant to its contractual terms (including the prepayment options), the remaining balance in AOCI of $307 ($225 net of deferred tax) will not reverse. The following table shows the original measurement categories under IAS 39 and the new measurement categories under IFRS 9 for each class of financial assets and financial liabilities as at January 1, 2018. 2017 2018 2017 2018 classification classification carrying amount under IAS 39 carrying amount under IFRS 9 Financial assets Cash and cash equivalents Loans and receivables Amortized cost $ 56,285 $ 56,285 Trade receivables Loans and receivables with embedded derivatives FVTPL 11,067 11,067 Other assets FVTPL FVTPL 132 132 Restricted cash Loans and receivables Amortized cost 5,036 5,036 Financial liabilities Accounts payable and accrued liabilities Other financial liabilities Other financial liabilities $ 53,436 $ 53,436 Restricted share unit liability FVTPL FVTPL 2,730 2,730 Senior secured term credit facility Other financial liabilities Other financial liabilities 365,890 365,890 Offtake obligation FVTPL FVTPL 78,085 78,085 Stream obligation FVTPL FVTPL (1) 224,020 224,020 Debt portion of convertible note Other financial liabilities Other financial liabilities 76,582 76,582 (1) The fair value changes associated with the stream obligation attributable to the changes in the credit risk is presented in OCI and the remaining amount of the change in the fair value is presented in earnings (loss). |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2018 | |
SIGNIFICANT ACCOUNTING POLICIES | |
SIGNIFICANT ACCOUNTING POLICIES | 3. SIGNIFICANT ACCOUNTING POLICIES Basis of consolidation These consolidated financial statements include the financial statements of the Company and the entities controlled by the Company, its subsidiaries, listed in the following table: Name of subsidiary Place of Proportion of Principal activity Pretium Exploration Inc. British Columbia, Canada 100% Holds interest in the Brucejack Mine and Snowfield Project 0890696 BC Ltd. British Columbia, Canada 100% Holds real estate in Stewart, British Columbia Control is defined as the exposure, or rights, to variable returns from involvement with an investee and the ability to affect those returns through power over the investee. Power over an investee exists when the Company has existing rights that give the Company the ability to direct the activities that significantly affect the investee’s returns. This control is generally evidenced through owning more than 50% of the voting rights or currently exercisable potential voting rights of a subsidiary’s share capital. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. Intercompany balances and transactions, including any unrealized income and expenses arising from intercompany transactions, are eliminated in preparing the consolidated financial statements. Foreign currency translation Functional and presentation currency Items included in the financial statements of each consolidated entity are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The functional currency of the Company and its subsidiaries is the United States dollar (“USD”), which is also the Company’s presentation currency. References to “$” or “USD” are to United States dollars, while references to “C$” or “CAD” are to Canadian dollars. Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuations where items are re-measured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at period end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in earnings (loss) for the year. Financial instruments The following accounting policies reflect the Company’s adoption of IFRS 9 effective January 1, 2018. For the year ended December 31, 2017, the Company applied policies based on IAS 39. The effects of the transition from IAS 39 to IFRS 9 are described in the change in accounting policies section of note 2. Financial assets – Classification Financial assets are classified at initial recognition as either: measured at amortized cost, FVTPL or FVOCI. The classification depends on the Company’s business model for managing the financial assets and the contractual terms of the cash flows. For assets measured at fair value, gains and losses will either be recorded in earnings (loss) or OCI. For investments in debt instruments, this will depend on the business model in which the investment is held. For investments in equity instruments that are not held for trading, this will depend on whether the Company has made an irrevocable election at the time of initial recognition to account for the equity investment at FVOCI. The Company reclassifies debt investments when and only when its business model for managing those assets changes. Financial assets – Measurement At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset not at FVTPL, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at FVTPL are expensed in earnings (loss). Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payment of principal and interest. Subsequent measurement of debt instruments depends on the Company’s business model for managing the asset and the cash flow characteristics of the asset. There are three measurement categories into which the Company classifies its debt instruments: · Amortized cost – Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortized cost. A gain or loss on a debt investment that is subsequently measured at amortized cost and is not part of a hedging relationship is recognized in earnings (loss) when the asset is derecognized or impaired. Interest income from these financial assets is included in interest and finance income using the effective interest rate method. · FVOCI – Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets’ cash flows represent solely payments of principal and interest, are measured at FVOCI. Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains and losses which are recognized in earnings (loss). When the financial asset is derecognized, the cumulative gain or loss previously recognized in OCI is reclassified from equity to earnings (loss) and recognized in other gains (losses). Interest income from these financial assets is included in interest and finance expense using the effective interest rate method. Foreign exchange gains and losses are presented in foreign exchange gain (loss) and impairment expenses in other expenses. · FVTPL – Assets that do not meet the criteria for amortized cost or FVOCI are measured at FVTPL. A gain or loss on a debt investment that is subsequently measured at FVTPL and is not part of a hedging relationship is recognized in earnings (loss) and presented net in the statement of earnings (loss) within other gains (losses) in the period in which it arises. Changes in the fair value of financial assets at FVTPL are recognized in loss on financial instruments at fair value in the statement of earnings (loss) as applicable. Impairment of financial assets The Company assesses on a forward looking basis the expected credit losses associated with its debt instruments carried at amortized cost and FVOCI. The impairment methodology depends on whether there has been a significant increase in credit risk. Cash and cash equivalents and restricted cash Cash and cash equivalents comprise cash holdings in business and savings accounts held at major financial institutions with an original maturity date of three months or less. Restricted cash is held at major financial institutions as collateral for reclamation and surety bonds. Cash and restricted cash are classified at amortized cost. Interest income is recognized by applying the effective interest rate method. Receivables and other The Company’s trade receivables result from sales transactions in accordance with IFRS 15, Revenue from Contracts with Customers and contain provisional pricing arrangements. These trade receivables are classified as FVTPL with the gain (loss) included in revenue. Accounts payable and accrued liabilities and debt Accounts payable and accrued liabilities, the debt portion of the convertible notes, the senior secured term credit facility and the senior secured loan facility are recognized initially at fair value, net of any directly attributable transaction costs. Subsequent to initial recognition these financial liabilities are held at amortized cost using the effective interest method. Derivatives Derivative instruments, including embedded derivatives in financial liabilities or non-financial contracts, such as the offtake obligation and stream obligation are recorded at FVTPL and, accordingly, are recorded on the statement of financial position at fair value. Fair values for derivative instruments are determined using valuation techniques, with assumptions based on market conditions existing at the statement of financial position date or settlement date of the derivative. Stream obligation The Company has determined the stream obligation was in substance a debt instrument with embedded derivatives linked to gold and silver commodity prices and interest rates. The Company elected to classify and measure the entire hybrid stream obligation as a financial liability carried at fair value with changes in fair value recorded through earnings (loss). IFRS 9 requires the gain or loss associated with changes in the fair value of the stream be recorded in earnings (loss), except for changes in fair value attributable to changes in the credit risk of the liability, which must be presented in OCI. The liability’s credit risk is represented by the difference between the discount rate associated with the liability and the risk-free rate. Inventories Ore stockpiles, in-circuit and finished metal inventory (gold and silver) are valued at the lower of weighted average production cost and net realizable value. Production costs include the cost of raw materials, direct labour, mine-site overhead expenses and applicable depreciation and depletion of mineral properties, plant and equipment. Net realizable value is calculated as the estimated price at the time of sale based on prevailing and long-term metal prices less estimated future production costs to convert the inventories into saleable form and estimated costs to sell. Ore stockpile inventory represents ore on the surface or underground that has been extracted from the mine and is available for further processing. In-circuit inventory represents material in the mill circuit that is in the process of being converted into a saleable form. Finished metal inventory represents gold and silver doré and concentrate located at the mine, in transit to customers and at refineries. Materials and supplies inventories are valued at the lower of weighted average cost and net realizable value. Replacement costs of materials and spare parts are generally used as the best estimate of net realizable value. Any write-downs of inventory to net realizable value are recorded within cost of sales in the consolidated statements of earnings (loss). If there is a subsequent increase in the value of inventory, the previous write-downs to net realizable value are reversed up to cost to the extent that the related inventory has not been sold. Mineral properties Mineral properties include the fair value attributable to mineral reserves and resources acquired in a business combination or asset acquisition, underground mine development costs and previously capitalized exploration and evaluation costs. Upon commencement of production, a mineral property is depleted using the unit-of-production method. Unit-of-production depletion rates are determined using gold ounces mined over the estimated recoverable proven and probable reserves at the mine. Development costs incurred during production The Company incurs development costs to build new raises and ramps (vertical development) that enable the Company to physically access ore underground. The time over which these costs will be incurred depends on the mine life. These underground development costs are capitalized as incurred. Capitalized underground development costs incurred to enable access to specific areas of the mine and which only provide an economic benefit over a specific the period of mining are depleted using a unit-of-production method determined using gold ounces mined over the estimated proven and probable reserves in that particular area of the mine. Plant and equipment Plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. The initial cost of an asset is comprised of its purchase price or construction cost, any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management and the estimated future cost of dismantling and removing the asset. The purchase price or construction cost is the fair value of consideration given to acquire the asset. Depreciation of plant and equipment commences when the asset has been fully commissioned and is available for its intended use. A majority of mine and site infrastructure assets, including buildings, roads and transmission lines are depreciated using a unit-of-production method over the life of mine. Depreciation is determined each period using gold ounces mined over the estimated proven and probable reserves of the mine. Depreciation of other assets, including those ancillary to the Brucejack Mine are calculated using the straight-line method to allocate cost over the estimated useful lives, as follows: Asset class Estimated useful life Mine and mill equipment 5 - 18 years Light vehicles 3 - 5 years Office and computer equipment 3 - 5 years Leasehold improvements Term of lease When significant components of an asset have different useful lives, depreciation is calculated on each separate component. Each asset or component’s estimated useful life has due regard to both its own physical life limitations and the present assessment of economically recoverable reserves of the Brucejack Mine. Depreciation methods and estimated useful lives and residual values are reviewed annually. Changes in estimates are accounted for prospectively. Expenditures on major maintenance or repairs includes the cost of the replacement of parts of assets and overhaul costs. Where an asset or part of an asset is replaced and it is probable that future economic benefits associated with the item will be available to the Company, the expenditure is capitalized and the carrying amount of the item replaced is derecognized. Similarly, overhaul costs associated with major maintenance are capitalized and depreciated over their useful lives where it is probable that the future economic benefits will be available and any remaining carrying amounts of the cost of previous overhauls are derecognized. All other costs are expensed as incurred. An item of plant and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on disposal of the asset, determined as the difference between the net disposal proceeds and the carrying amount of the asset, is recognized in the consolidated statement of earnings (loss). Construction in progress Costs recorded for assets under construction are capitalized as construction in progress. On completion, the cost of construction is transferred to the appropriate category of mineral properties, plant and equipment. No depreciation is recorded until the assets are substantially complete and available for their intended use. Borrowing costs Borrowing costs that are directly attributable to the acquisition, construction or production of an asset that takes a substantial period of time to prepare for its intended use are capitalized as part of the cost of the asset. Capitalization of borrowing costs begins when there are borrowings and activities commence to prepare an asset for its intended use. Capitalization of borrowing costs ends when substantially all activity necessary to prepare a qualifying asset for its intended use are complete. When proceeds of project specific borrowings are invested on a temporary basis, borrowing costs are capitalized net of any investment income. Exploration and evaluation expenditures Exploration and evaluation expenditures include the costs of acquiring licenses and costs associated with exploration and evaluation activity. Exploration and evaluation expenditures are capitalized. Mineral property acquisition costs are capitalized. Exploration and evaluation costs incurred before the Company has obtained the legal rights to explore an area are expensed. Once the technical feasibility and commercial viability of the extraction of mineral reserves or resources from a particular mineral property has been determined, expenditures are reclassified to mineral properties within mineral properties, plant and equipment. The establishment of technical feasibility and commercial viability of a mineral property is assessed based on a combination of factors, including: · The extent to which mineral reserves or mineral resources as defined in National Instrument 43‑101 have been identified through a feasibility study or similar document; · The results of optimization studies and further technical evaluation carried out to mitigate project risks identified in the feasibility study; · The status of environmental permits; and · The status of mining leases or permits. Exploration and evaluation assets are tested for impairment immediately prior to reclassification to mineral properties. Mineral exploration tax credits Mineral exploration tax credits on eligible mineral exploration expenditures incurred are treated as a reduction of capitalized mineral properties. The credits are recorded when the amount is reliably measurable and it is considered probable that the tax credit will be recovered. Mineral recoveries The incidental proceeds from the sale of gold recovered from activities conducted during the exploration and evaluation stage are offset against the carrying value of the associated mineral properties, plant and equipment. Impairment of non-financial assets The carrying amounts of assets included in mineral properties, plant and equipment are reviewed for impairment whenever facts and circumstances suggest that the carrying amounts may not be recoverable. If there are indicators of impairment, the recoverable amount of the asset is estimated in order to determine the extent of any impairment. Where the asset does not generate cash flows that are independent from other assets, the recoverable amount of the cash generating unit to which the asset belongs is determined. The recoverable amount of an asset or cash generating unit is determined as the higher of its fair value less costs of disposal and its value in use. An impairment loss exists if the asset’s carrying amount exceeds the recoverable amount, and is recorded as an expense immediately. Value in use is determined as the present value of the future cash flows expected to be derived from continuing use of an asset or cash generating unit in its present form. These estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or cash generating unit for which estimates of future cash flows have not been adjusted. Fair value is the price that would be received from selling an asset in an orderly transaction between market participants at the measurement date. Costs of disposal are incremental costs directly attributable to the disposal of an asset. Estimated future cash flows are calculated using estimated future prices, mineral reserves and resources and operating and capital costs. All inputs used are those that an independent market participant would consider appropriate. Tangible assets that have been impaired in prior periods are tested for possible reversal of impairment whenever events or changes in circumstances indicate that the impairment has reversed. If the impairment has reversed, the carrying amount of the asset is increased to its recoverable amount, but not beyond the carrying amount that would have been determined had no impairment loss been recognized for the asset in the prior periods. A reversal of an impairment loss is recognized into earnings (loss) immediately. Decommissioning and restoration provision The Company has provisions for decommissioning and restoration costs which include the dismantling and demolition of infrastructure and the removal of residual materials and remediation of disturbed areas. Decommissioning and restoration costs are a normal consequence of mining and the majority of decommissioning and restoration expenditures are incurred at the end of the life of mine. Decommissioning and restoration costs are estimated and discounted to their net present value and capitalized to the carrying amount of the related asset along with the recording of a corresponding liability, as soon as the obligation to incur such costs arises. The discount rate used to calculate the net present value is a pre-tax rate that reflect risks specific to the liability. Each period the Company reviews cost estimates and other assumptions used in the valuation of the provision to reflect events, changes in circumstances and new information available. The liability is adjusted each year for the unwinding of the discount rate, changes to the current market-based discount rate and for the amount or timing of the underlying cash flows needed to settle the provision. Share capital Common shares are classified as equity. Transaction costs directly attributable to the issue of common shares and share options are recognized as a deduction from equity, net of any tax effects. Flow-through shares The issuance of flow-through common shares results in the obligation to transfer the tax deductibility of the qualifying resource expenditures funded from the proceeds of the sale of such shares to the purchasers of the shares. On the issuance of such shares, the Company bifurcates the flow-through shares into: a flow-through share premium, equal to the estimated premium that investors pay for the flow-through feature, which is recognized as a liability, and share capital. As the related exploration expenditures are incurred, the Company derecognizes the premium liability and recognizes a related income tax recovery. Revenue recognition The Company produces doré and concentrates which contain both gold and silver. The doré is further processed to produce refined metals for sale. The concentrates may be sold to smelters in concentrate form or further processed to produce refined metals for sale. The Company’s performance obligations relate primarily to the delivery of gold and silver to its customers. For gold, the Company is required to deliver gold equivalent to 100% of production up to 7,067,000 ounces into an offtake agreement (note 10c). Revenue is recognized when control is transferred to the customer. Control transfers when a product is delivered to the customer, the customer has full discretion over the product and there is no unfulfilled obligation that could affect the customer’s acceptance of the product. Control over the refined gold or silver produced from doré or concentrate is transferred to the customer and revenue recognized upon delivery to the customer’s bullion account. Control over the gold and silver bearing concentrates is transferred to the customer and revenue recognized at the time the Company elects to settle the sale directly with the smelter or when the concentrates are loaded onto the vessel at the port of discharge, depending on the customer. Revenue from these sales are recognized net of treatment costs and refining charges. For each physical shipment of doré, 90% of the estimated contained gold is available to be delivered to the customer's bullion account within approximately 10 days of arrival at the refinery. The balance of the contained gold is delivered the customer's bullion account following the final processing outturn. For each physical shipment of doré, 100% of the contained silver is sold upon the final processing outturn. Silver revenue is recorded at the spot price on the date of sale. For any physical shipment of concentrate, where the Company receives the refined gold rather than a cash payment, 90% of the estimated contained gold received is available to be delivered to the customer’s bullion account within approximately 15 – 30 days after the bill of lading date. The balance of the contained gold is delivered to the customer’s bullion account following the final processing outturn. Revenue is required to be recognized at an amount that reflects the consideration to which the Company expects to be entitled in exchange for transferring the product to the customer. Sales of refined gold and silver are delivered directly into the offtake agreement and recorded at the spot price on the date of delivery. The final purchase price to be paid by the purchaser will be, at the purchaser’s option, a market referenced gold price in USD per ounce during a defined pricing period after the date of each sale. The difference between the spot price on the date of sale and the price paid by the purchaser reflects the settlement of a portion of the offtake obligation previously recorded on the statement of financial position. The Company receives payment for 90% of the value of each gold sale within 2 days of the date of sale. A final payment for 10% of the value of each gold sale, taking into account the purchaser’s pricing option, is received on the 7 th day after the date of sale. Concentrate sales which are cash settled directly with the smelter are recorded at the provisional price based on the estimated forward price to the date of final settlement. The final purchase price for these gold sales will be the average price for a period of time following the bill of lading date depending on the customer. Adjustments are made in subsequent periods to the customer receivables for these sales transactions based on movements in market prices prior to final pricing. As a result, concentrate sales receivables are fair valued and adjusted each period to reflect forward market prices to the estimated settlement date. These changes in fair value are included in revenue on the statement of earnings (loss). The Company receives payment for 90% of the value of each concentrate shipment 15 – 30 days after the loading of the material at the port of discharge. A final payment for 10% of the value of each sale is received upon completion of final assays and final pricing based on a defined pricing period. Share-based payments Share options Options granted to employees under the Company’s equity settled share-based option plan are measured at fair value at the date of grant. Fair value is determined using the Black-Scholes option pricing model, which relies on estimates of the risk-free interest rate, expected share price volatility, future dividend payments and the expected average life of the options. The fair value determined at the grant date is recognized as an expense over the vesting period in accordance with the vesting terms and conditions (graded vesting method), with a corresponding increase in contributed surplus in equity. An individual is classified as an employee when the individual is an employee for legal or tax purposes (direct employee) or provides services similar to those performed by a direct employee. Equity-settled share-based payment transactions with non-employees are measured at the fair value of the goods or services received. However, if the fair value cannot be estimated reliably, the share-based payment transaction is measured at the fair value of the equity instruments granted at the date the non-employee receives the goods or the services. Restricted share units (“RSU’s”) RSU’s are granted to employees of the Company and are expected to be settled in cash. A liability for RSU’s is measured at fair value on the grant date and is subsequently adjusted for changes in fair value at each reporting date until settlement. The fair value of RSU’s is estimated based on the quoted market price of the Company’s common shares. The liability is recognized on a graded vesting basis over the vesting period, with a corresponding expense in the statement of earnings (loss). Performance share units (“PSU’s”) PSU’s are granted under the Company’s 2015 RSU Plan and are expected to be settled in cash. The amount of units to be issued on the vesting date will vary from 0% to 200% of the number of PSU’s granted, depending on the Company’s total shareholder return compared to the return of a selected group of peer companies. Vesting, and therefore the liability, is based on the Company’s total shareholder return and the target settlement ranges from 0% to 200% of the original grant of units. The fair value of a PSU reflects the value of a Company common share based on the quoted market price and the number of units issued is dependent upon the Company’s relative performance against a selected group of peer companies. The initial fair value of the liability is calculated as of the grant date and is recognized as share-based compensation expense over the vesting period in accordance with the vesting terms and conditions. Subsequently, at each reporting date and on settlement, the liability is re-measured with any changes in fair value recorded to the statement of earnings (loss). Deferred share units (“DSU’s”) DSU’s are granted to independent directors of the Company and are settled in cash when the individual ceases to be a director of the Company, either voluntarily or involuntarily. DSU’s vest immediately on the grant date. The fair value of a DSU reflects the value of a Company common share based on the quoted market price. The initial fair value of the liability is calculated as of the grant date and is recognized as share-based compensation expense. Subsequently, at each reporting date and on settlement, the liability is re-measured with any changes in fair value recorded to the statement of earnings (loss). Income and mining taxes Income taxes include Canadian federal and provincial income taxes. Provincial mining taxes represent Canadian provincial taxes levied on mining operations. To the extent these taxes are determined based on a measure of taxable earnings, they are also accounted for as income taxes. Income tax is recognized in earnings (loss) except to the extent that it relates to items recognized directly in equity, in which case it is recognized in equity. Current tax expense is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at year end, adjusted for amendments to tax payable with regards to previous years. Deferred tax is provided for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Temporary differences are not provided for the initial recognition of assets or liabilities that affect neither accounting nor taxable earnings. The amount of deferred tax provided is based on the expected manner of realization or settlement of the carrying amount of assets and liabilities, using tax rates at the end of the reporting year applicable to the year of expected realization. A deferred tax asset is recognized only to the extent that it is probable that future taxable earnings will be available against which the asset can be utilized. Contingent liabilities Contingent liabilities are possible obligations whose existence will only be confirmed by future events not wholly within the control of the Company. Contingent liabilities are disclosed unless the possibility of an outflow of economic resources is considered remote. Earnings (loss) per share The Company presents basic earnings (loss) per share data for its common shares, calculated by dividing the earnings (loss) attributable to common shareholders of the Company by the weighted average number of common shares outstanding during the year. Diluted earnings (loss) per share is determined by adjusting the earnings (loss) attributable to common shareholders and the weighted average number of common shares outstanding for the effects of all dilutive potential common shares. |
CRITICAL ACCOUNTING ESTIMATES A
CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS | 12 Months Ended |
Dec. 31, 2018 | |
CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS | |
CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS | 4. CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS The preparation of financial statements requires the use of accounting estimates. It also requires management to exercise judgment in the process of applying its accounting policies. Estimates and judgments are regularly evaluated and are based on management’s experience and other factors, including expectations about future events that are believed to be reasonable under the circumstances. The following discusses the most significant accounting judgments and accounting estimates that the Company has made in the preparation of the financial statements including those that could result in a material effect in the next financial year on the carrying amounts of assets and liabilities: Key sources of accounting policy judgment Impairment of mineral properties, plant and equipment The application of the Company’s accounting policy for impairment of mineral properties, plant and equipment requires judgment to determine whether indicators of impairment exist. The review of impairment indicators includes consideration of both external and internal sources of information, including factors such as market and economic conditions, metal prices and forecasts, capital expenditure requirements, future operating costs and production volumes. Management has assessed impairment indicators on the Company’s mineral properties, plant and equipment and has concluded that no impairment indicators exist as of December 31, 2018. Impairment of exploration and evaluation assets The application of the Company’s accounting policy for impairment of exploration and evaluation assets requires judgment to determine whether indicators of impairment exist including factors such as, the period for which the Company has the right to explore, expected renewals of exploration rights, whether substantive expenditures on further exploration and evaluation of resource properties are budgeted and evaluation of the results of exploration and evaluation activities up to the reporting date. Management has assessed impairment indicators on the Company’s exploration and evaluation assets and has concluded that no impairment indicators exist as of December 31, 2018. Estimation uncertainty Mineral reserves and resources The Company estimates its mineral reserves and resources based on information compiled by qualified persons as defined in accordance with National Instrument 43-101, Standards of Disclosure for Mineral Projects requirements. The estimation of ore reserves and resources requires judgment to interpret available geological data then select an appropriate mining method and establish an extraction schedule. It also requires assumptions about future commodity prices, exchange rates, production costs and recovery rates. There are uncertainties inherent in estimating mineral reserves and resources and assumptions that are valid at the time of estimation and may change significantly when new information becomes available. New geological data as well as changes in the above assumptions may change the economic status of reserves and may, ultimately, result in the reserves being revised. Changes in the proven and probable mineral reserves and measured and indicated and inferred mineral resources estimates may impact the carrying value of mineral properties, plant and equipment, the calculation of depletion and depreciation expense, measurement of the decommissioning and site restoration provision and recognition of deferred tax amounts. Fair value of derivatives and other financial liabilities The fair values of financial instruments that are not traded in an active market are determined using valuation techniques. Management uses its judgment to select a method of valuation and makes estimates of specific model inputs that are based on conditions existing at the end of each reporting period. Refer to Note 10 and 20 for further details on the methods and assumptions associated with the measurement of the construction financing liabilities. The valuation of the convertible notes at inception was completed using a discounted cash flow analysis that required various estimates and assumptions, including the discount rate for a similar non-convertible instrument. Refer to Note 11 for further details on the methods and assumptions associated with measurement of the convertible notes. |
NEW ACCOUNTING STANDARDS AND RE
NEW ACCOUNTING STANDARDS AND RECENT PRONOUNCEMENTS | 12 Months Ended |
Dec. 31, 2018 | |
NEW ACCOUNTING STANDARDS AND RECENT PRONOUNCEMENTS | |
NEW ACCOUNTING STANDARDS AND RECENT PRONOUNCEMENTS | 5. NEW ACCOUNTING STANDARDS AND RECENT PRONOUNCEMENTS New accounting standard not yet adopted A new accounting standard has been issued and is relevant to the Company but not yet effective and therefore not been applied in preparing these consolidated financial statements: IFRS 16, Leases (“IFRS 16”) IFRS 16 addresses accounting for leases and lease obligations. It replaces the existing leasing guidance in IAS 17, Leases . The objective of the new standard is to report all leases on the statement of financial position and to define how leases and lease liabilities are measured. IFRS 16 is effective from January 1, 2019 and must be applied retrospectively, subject to certain practical expedients, using either a full retrospective approach or a modified retrospective approach. The Company is party to various leases as part of its mining operations. All leases will be recorded on the statement of financial position, except short-term leases and leases of low-value items. This is expected to result in a material increase to both assets (right of use) and liabilities (lease obligations) upon adoption of the standard, and changes to the timing of recognition and classification of expenses associated with such lease arrangements. The Company anticipates an increase in depreciation and depletion expense and interest and finance expense, and a decrease in operating expenses. The Company also anticipates an increase in cash flow from operating activities as lease payments will be recorded as financing outflows in the statement of cash flows. The Company intends to adopt the modified retrospective approach and not restate balances for the comparative period. The Company has completed its review of all existing operating leases and service contracts to identify contracts in scope for IFRS 16 and assessed contracts for embedded leases. The Company is still in the process of evaluating its lease conclusions and the quantitative impact of the adoption. There are no other IFRS’s or IFRIC interpretations that are not yet effective or early adopted that are expected to have a material impact on the Company. |
RECEIVABLES AND OTHER
RECEIVABLES AND OTHER | 12 Months Ended |
Dec. 31, 2018 | |
RECEIVABLES AND OTHER | |
RECEIVABLES AND OTHER | 6. RECEIVABLES AND OTHER December 31, December 31, 2018 2017 Trade receivables $ 14,487 $ 11,067 Prepayments and deposits 3,332 2,064 Tax receivables 420 6,166 Other receivables 73 5 BC Mineral Exploration Tax Credit ("BCMETC") receivable — 249 $ 18,312 $ 19,551 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2018 | |
INVENTORIES | |
INVENTORIES | 7. INVENTORIES December 31, December 31, 2018 2017 Finished metal $ 12,745 $ 15,309 Materials and supplies 11,548 8,201 In-circuit 458 2,163 $ 24,751 $ 25,673 As at December 31, 2018, $3,138 (2017 – $3,344) of depreciation and depletion and $199 (2017 – $371) of site share-based compensation was included in inventory. |
MINERAL PROPERTIES, PLANT AND E
MINERAL PROPERTIES, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2018 | |
MINERAL PROPERTIES, PLANT AND EQUIPMENT | |
MINERAL PROPERTIES, PLANT AND EQUIPMENT | 8. MINERAL PROPERTIES, PLANT AND EQUIPMENT Mineral Construction Plant and Exploration and properties in progress equipment evaluation assets Total Year ended December 31, 2017 Cost Balance, January 1, 2017 $ 382,294 $ 633,181 $ 21,064 $ 242,788 $ 1,279,327 Additions — 324,641 297 3,928 328,866 Transfer from construction in progress to inventory — (8,192) — — (8,192) Transfer from construction in progress to plant and equipment — (523,488) 523,488 — — Transfer from construction in progress to mineral properties 420,419 (420,419) — — — Reversal (recoveries) of BCMETC 4,806 — — (253) 4,553 Balance, December 31, 2017 $ 807,519 $ 5,723 $ 544,849 $ 246,463 $ 1,604,554 Accumulated depreciation and depletion Balance, January 1, 2017 $ — $ — $ 8,870 $ — $ 8,870 Depreciation and depletion 14,924 — 15,900 — 30,824 Balance, December 31, 2017 $ 14,924 $ — $ 24,770 $ — $ 39,694 Net book value - December 31, 2017 $ 792,595 $ 5,723 $ 520,079 $ 246,463 $ 1,564,860 Year ended December 31, 2018 Cost Balance, January 1, 2018 $ 807,519 $ 5,723 $ 544,849 $ 246,463 $ 1,604,554 Additions 641 17,935 1,199 5,544 25,319 Transfer from construction in progress to plant and equipment — (10,008) 10,008 — — Transfer from construction in progress to mineral properties 4,467 (4,467) — — — Balance, December 31, 2018 $ 812,627 $ 9,183 $ 556,056 $ 252,007 $ 1,629,873 Accumulated depreciation and depletion Balance, January 1, 2018 $ 14,924 $ — $ 24,770 $ — $ 39,694 Depreciation and depletion 36,066 — 31,194 — 67,260 Balance, December 31, 2018 $ 50,990 $ — $ 55,964 $ — $ 106,954 Net book value - December 31, 2018 $ 761,637 $ 9,183 $ 500,092 $ 252,007 $ 1,522,919 (a) Mineral properties Mineral properties consist solely of the Brucejack Mine. (b) Plant and equipment During the year ended December 31, 2018, $67,260 (2017 - $28,862) of depreciation and depletion was recognized in the statement of earnings (loss) and nil (2017 - $1,962) was capitalized within construction in progress. (c) Exploration and evaluation assets Exploration and evaluation assets consists of the Snowfield Project and regional drilling and exploration work on the Bowser Claims. |
ACCOUNTS PAYABLE AND ACCRUED LI
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2018 | |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | 9. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES December 31, December 31, 2018 2017 Trade payables $ 24,814 $ 35,142 Accrued liabilities 16,945 17,488 Employee benefit liability 4,398 4,783 Restricted share unit liability 1,502 2,730 Accrued interest on loan facility 1,051 — Deferred share unit liability 997 — Finance lease obligation 748 — Accrued interest on convertible notes 660 660 Royalty payable 629 146 $ 51,744 $ 60,949 Non-current portion of restricted share unit liability (554) (511) Non-current portion of finance lease obligation (518) — Current portion of accounts payable and accrued liabilities $ 50,672 $ 60,438 (a) Finance lease obligation Finance lease obligations are effectively secured as the rights to the leased asset revert to the lessor in the event of default. December 31, December 31, 2018 2017 Gross finance lease obligation - minimum lease payments 1 year $ 277 $ — 2-3 years 527 — 4-5 years 35 — $ 839 $ — Future interest expense on finance lease obligation (91) — $ 748 $ — |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2018 | |
LONG-TERM DEBT | |
LONG-TERM DEBT | 10. LONG-TERM DEBT As at December 31, 2018, the Company’s long-term debt consisted of the following: Senior Senior secured term Offtake Stream secured loan Total long- credit facility obligation obligation facility term debt Balance, January 1, 2017 $ 232,438 $ 67,702 $ 201,020 $ — $ 501,160 Additional advances under the credit facility 85,205 — — — 85,205 Interest expense including amortization of discount 48,247 — — — 48,247 Settlement of offtake obligation — (1,543) — — (1,543) Loss on financial instruments at fair value — 11,926 23,000 — 34,926 Balance, December 31, 2017 $ 365,890 $ 78,085 $ 224,020 $ — $ 667,995 Interest expense including amortization of discount 56,834 — — — 56,834 Settlement of offtake obligation — (4,423) — — (4,423) Loss (gain) on financial instruments at fair value — (3,593) 20,574 — 16,981 Change in fair value attributable to change in credit risk of financial instruments designated at FVTPL — — (7,594) — (7,594) Repayment of credit facility (422,724) — — — (422,724) Repurchase of stream obligation — — (237,000) — (237,000) Proceeds from loan facility, net of transaction costs — — — 472,051 472,051 Amortization of loan facility transaction costs — — — 95 95 Balance, December 31, 2018 $ — $ 70,069 $ — $ 472,146 $ 542,215 Current portion of long-term debt — (7,576) — (78,385) (85,961) Non-current portion of long-term debt $ — $ 62,493 $ — $ 393,761 $ 456,254 (a) Senior secured loan facility On December 18, 2018, the Company closed a $480,000 senior secured loan facility (the “loan facility”) with a syndicate of financial institutions arranged by The Bank of Nova Scotia, ING Capital LLC and SG Americas Securities, LLC. The loan facility is comprised of a $250,000 senior secured amortizing non-revolving credit facility (the “term facility”) and a $230,000 senior secured revolving credit facility (the “revolving facility”). The loan facility is secured by substantially all of the assets of the Company and its subsidiaries. The term of the loan facility is four years, maturing on December 18, 2022. The loan facility was fully drawn as at December 31, 2018. Each borrowing under the term and revolving facilities is available by way of USD London Inter-Bank Offered Rate (“LIBOR”) loans or USD base rate loans. The revolving facility is also available in various other forms, including Canadian prime loans, bankers’ acceptances, bankers’ acceptance equivalent loans, and letters of credit. Borrowings comprising USD LIBOR loans shall bear interest at LIBOR plus an applicable margin of 2.5% to 3.5% based on the Company’s net leverage ratio. Borrowings comprising USD base rate loans shall bear interest at the administrative agent’s base rate plus an applicable margin of 1.5% to 2.5% based on the Company’s net leverage ratio. As at December 31, 2018, the LIBOR on the Company’s borrowings was 2.5%. Interest is payable on the last day of the interest period related to a borrowing. For the year ended December 31, 2018, $1,083 (2017 – nil) of interest expense was expensed as interest and finance expense in the statement of earnings (loss). The term facility requires repayment in equal quarterly installments of principal in the amount of $16,667 commencing at the end of the second quarter of 2019. The revolving facility requires a principal repayment of $30,000 on June 18, 2019, reducing the available revolving facility to $200,000. The remaining principal of the revolving facility is required to be repaid as a bullet payment in full on the maturity date. Any unused portion of the revolving facility will be subject to a standby fee of 0.6% to 0.8%. Transaction costs associated with the loan facility were $7,949 including an underwriting fee equal to 1.55% of the amount of the commitment related to the loan facility. The transactions costs will be amortized over the term of the loan. For the year ended December 31, 2018, $95 (2017 – nil) of amortization of the loan facility transaction costs were expensed to interest and finance expense in the statement of earnings (loss). The effective interest rate for the loan facility as at December 31, 2018 is 5.9%. The Company is subject to financial covenants including interest coverage ratio, leverage ratio, tangible net worth and minimum liquidity under the terms of the loan facility. As at December 31, 2018, the Company was in compliance with all financial covenants. (b) Senior secured term credit facility On September 21, 2015, the Company closed a construction financing comprised of a senior secured term credit facility (the “credit facility”) for $350,000, an offtake agreement, a $150,000 callable gold and silver stream agreement and a private placement of common shares for $40,000. Pursuant to the terms of the credit facility, the Company borrowed $350,000 at a stated interest rate of 7.5%, compounded quarterly and payable upon maturity. The credit facility matured December 31, 2018 and was subject to an extension for one year, at the Company’s option upon payment of an extension fee of 2.5% of the principal amount, including accumulated interest. The Company had the right to repay at par plus accrued interest after the second anniversary of closing. The embedded derivatives associated with the prepayment and extension options were recorded on the statement of financial position as other assets. For the year ended December 31, 2018, the change in fair value of these embedded derivatives was a fair value loss of $132 (2017 – $1,624) which resulted in a nil balance for other assets on the statement of financial position. As a result of the impact of the offtake obligation, the arrangement fees and the prepayment and extension options, the effective interest rate on the credit facility was 15.0%. For the year ended December 31, 2018, the Company expensed $56,834 (2017 – $26,091) of interest on the credit facility to the statement of earnings (loss) and capitalized nil (2017 - $22,156) to mineral properties, plant and equipment. On December 18, 2018, the Company used proceeds from the loan facility to repay the credit facility in the amount of $422,724 which included principal and accrued interest. (c) Offtake obligation The Company entered into an agreement pursuant to which it will deliver 100% of refined gold up to 7,067,000 ounces. The final purchase price to be paid by the purchaser will be, at the purchaser’s option, a market referenced gold price in USD per ounce during a defined pricing period before and after the date of each sale. The Company has the option to reduce the offtake obligation by up to 75% by paying $13 per ounce effective December 31, 2019 on the then remaining undelivered gold ounces. For the year ended December 31, 2018, the Company delivered 371,223 (2017 – 121,671) ounces of gold under the offtake agreement. Of the amount settled, the Company physically delivered 249,799 (2017 – 94,169) ounces from doré production and purchased 121,424 (2017 – 27,502) ounces to satisfy delivery of gold produced from concentrate sales. The settlement of the gold ounces resulted in a decrease in the offtake obligation of $4,423 (2017 – $1,543). The offtake obligation is recorded at fair value at each statement of financial position date. For the year ended December 31, 2018, the change in fair value of the offtake obligation was a fair value gain of $3,593 (2017 – loss of $11,926). (d) Stream obligation Pursuant to the stream, the Company was obligated to deliver, subject to prepayment options, 8% of up to 7,067,000 ounces of refined gold and 8% of up to 26,297,000 ounces of refined silver commencing on January 1, 2020 (less gold and silver sold to date) and a payment of $20,000. Upon delivery, the Company was entitled to (a) for gold, the lesser of $400 per ounce and the gold market price and (b) for silver, the lesser of $4 per ounce and the silver market price. Any excess of market over the fixed prices above would be credited against the deposit. Any remaining uncredited balance of the deposit was repayable, without interest, upon the earlier of the date (i) the aggregate stated gold and silver quantities have been delivered and (ii) 40 years. The Company had the option to repurchase the stream obligation for $237,000 on December 31, 2018. The Company exercised this option and repurchased the stream obligation on December 18, 2018. The stream obligation was recorded at fair value at each statement of financial position date. For the year ended December 31, 2018, the change in fair value of the stream obligation was a fair value loss of $12,980 (2017 – $23,000). Of the change in fair value, a fair value loss of $20,574 (2017 – $23,000) was recognized in the statement of earnings (loss) and a fair value gain due to the change in the Company's credit risk of $7,594 ($5,543 net of deferred tax) was recognized in OCI. As the stream was in substance a debt instrument, the effective interest on the debt host was capitalized as a borrowing cost during the development of the Brucejack Mine. For the year ended December 31, 2018, the Company capitalized nil (2017 – $10,120) of interest on the stream debt to mineral properties, plant and equipment. The capitalized interest was reclassified from the loss on financial instruments at fair value recorded in the statement of earnings (loss). The effective interest rate on the stream obligation was 9.5%. |
CONVERTIBLE NOTES
CONVERTIBLE NOTES | 12 Months Ended |
Dec. 31, 2018 | |
CONVERTIBLE NOTES | |
CONVERTIBLE NOTES | 11. CONVERTIBLE NOTES On February 14, 2017, the Company completed an offering of $100,000 aggregate principal amount of unsecured convertible senior subordinated notes due 2022 (the “Notes”) which mature on March 15, 2022 and bear an interest rate of 2.25% per annum, payable semi-annually in arrears on March 15 and September 15 of each year. The Notes are convertible into common shares of the Company at a fixed conversion rate, subject to certain anti-dilution adjustments. In addition, if certain fundamental changes occur, holders of the Notes may be entitled to an increased conversion rate. The Notes are convertible into common shares of the Company at an initial conversion rate of 62.5 common shares per $1 principal amount of Notes converted, representing an initial conversion price of $16.00 per common share. The Company may not redeem the Notes before March 20, 2020, except in the event of certain changes in Canadian tax law. At any time on or after March 20, 2020, the Company may redeem all or part of the Notes for cash, but only if the last reported sale price of the Company’s common shares for 20 or more trading days in a period of 30 consecutive trading days exceeds 130% of the conversion price. The redemption price will equal to the sum of (1) 100% of the principal amount of the notes to be redeemed and (2) accrued and unpaid interest, if any, to the redemption date. The Company is required to offer to purchase for cash all of the outstanding Notes upon a fundamental change, at a purchase price in cash equal to 100% of the principal amount of the Notes to be purchased, plus accrued and unpaid interest, if any, to the fundamental change purchase date. At initial recognition, the net proceeds of the Notes were bifurcated into its debt and equity components of $71,685 and $24,110 ($17,603 net of deferred tax) respectively. The fair value of the debt portion was estimated using a discounted cash flow model method based on an expected life of five years and a discount rate of 8.6%. The debt portion has been designated a financial liability at amortized cost and is recorded net of transaction costs and accreted over the expected life using the effective interest rate of 7.8%. For the year ended December 31, 2018, $5,568 (2017 – $2,807) of accretion of convertible notes was expensed to the statement of earnings (loss) and nil (2017 – $2,090) was capitalized to mineral properties, plant and equipment. The movement in the debt portion of the Notes during the period comprised the following: For the year ended December 31, December 31, 2018 2017 Opening balance $ 76,582 $ — Face value of convertible notes — 100,000 Transaction costs associated with convertible notes — (4,205) Equity component of convertible notes, net of allocated transaction costs — (24,110) Accretion of convertible notes 5,568 4,897 Ending balance $ 82,150 $ 76,582 |
DECOMMISSIONING AND RESTORATION
DECOMMISSIONING AND RESTORATION PROVISION | 12 Months Ended |
Dec. 31, 2018 | |
DECOMMISSIONING AND RESTORATION PROVISION | |
DECOMMISSIONING AND RESTORATION PROVISION | 12. DECOMMISSIONING AND RESTORATION PROVISION (a) Reclamation bonds In relation to the Brucejack Mine, the Company has $2,029 of restricted cash (2017 - $5,036) which includes $1,749 (2017 - $4,731) in the form of Guaranteed Investment Certificates and Letters of Credit as security deposits with various government agencies in relation to decommissioning and restoration provisions. In support of the closure plan for the Brucejack Mine, the Company increased its security through a surety bond by C$8,500, for total surety bonds of C$22,700 in favour of the Ministry of Energy and Mines. The Company was not required to provide collateral for the additional bond. (b) Decommissioning and restoration provision The Company has a liability for remediation of current and past disturbances associated with the exploration, development and production activities at the Brucejack Mine. The decommissioning and restoration provision is as follows: For the year ended December 31, December 31, 2018 2017 Opening balance $ 18,436 $ 13,675 Change in discount rate 215 (1,933) Accretion of decommissioning and restoration provision 568 465 Change in amount and timing of cash flows (272) 6,229 Ending balance $ 18,947 $ 18,436 For the year ended December 31, 2018, the provision increased due to a decrease in the discount rate. The Company used an inflation rate of 1.9% (2017 – 1.9%) and a discount rate of 2.4% (2017 – 2.5%) in calculating the estimated obligation. The liability for retirement and remediation on an undiscounted basis before inflation is $20,369 (2017 – $21,989). The majority of the expected expenditures to settle the decommissioning and restoration provision are expected to occur shortly after the end of the mine life. |
REVENUE
REVENUE | 12 Months Ended |
Dec. 31, 2018 | |
REVENUE | |
REVENUE | 13. REVENUE Revenue by metal was: For the year ended December 31, December 31, 2018 2017 Gold revenue $ 452,253 $ 175,793 Silver revenue 5,362 1,994 Revenue from contracts with customers $ 457,615 $ 177,787 (Loss) gain on trade receivables at fair value (3,059) 146 $ 454,556 $ 177,933 Revenue from contracts with customers by product was: For the year ended December 31, December 31, 2018 2017 Gold revenue - doré $ 315,068 $ 122,684 Gold revenue - concentrate 137,185 53,109 Silver revenue - concentrate 3,120 1,345 Silver revenue - doré 2,242 649 $ 457,615 $ 177,787 |
COST OF SALES
COST OF SALES | 12 Months Ended |
Dec. 31, 2018 | |
COST OF SALES | |
COST OF SALES | 14. COST OF SALES For the year ended December 31, December 31, 2018 2017 Consultants and contractors $ 100,873 $ 47,907 Depreciation and depletion 67,134 28,722 Salaries and benefits 46,946 20,534 Supplies and consumables 29,146 10,547 Royalties and selling costs 19,739 7,308 Energy 13,408 5,104 Travel and camp accommodation 7,052 4,113 Freight 4,416 5,242 Camp administrative costs 3,931 1,410 Rentals 3,402 1,462 Site share-based compensation 2,160 1,198 Insurance 1,451 813 299,658 134,360 Change in inventories 4,269 (9,280) $ 303,927 $ 125,080 |
CORPORATE ADMINISTRATIVE COSTS
CORPORATE ADMINISTRATIVE COSTS | 12 Months Ended |
Dec. 31, 2018 | |
CORPORATE ADMINISTRATIVE COSTS | |
CORPORATE ADMINISTRATIVE COSTS | 15. CORPORATE ADMINISTRATIVE COSTS For the year ended December 31, December 31, 2018 2017 Salaries and benefits $ 6,026 $ 9,710 Share-based compensation 4,140 4,846 Office 1,580 1,020 Investor relations 1,318 1,064 Professional fees 1,085 801 Insurance 774 507 Listing and filing fees 390 381 Travel and accommodation 349 347 Depreciation 126 140 $ 15,788 $ 18,816 |
INTEREST AND FINANCE EXPENSE
INTEREST AND FINANCE EXPENSE | 12 Months Ended |
Dec. 31, 2018 | |
INTEREST AND FINANCE EXPENSE | |
INTEREST AND FINANCE EXPENSE | 16. INTEREST AND FINANCE EXPENSE For the year ended December 31, December 31, 2018 2017 Interest expense on credit facility $ 56,834 $ 26,091 Interest expense on convertible notes 7,818 3,941 Interest expense on loan facility 1,178 — Accretion of decommissioning and restoration provision 568 465 Other interest expense 483 70 Bank charges 29 88 Interest expense on finance leases 16 — $ 66,926 $ 30,655 |
CAPITAL AND RESERVES
CAPITAL AND RESERVES | 12 Months Ended |
Dec. 31, 2018 | |
CAPITAL AND RESERVES | |
CAPITAL AND RESERVES | 17. CAPITAL AND RESERVES (a) Share capital At December 31, 2018, the authorized share capital consisted of an unlimited number of common shares without par value and an unlimited number of preferred shares with no par value. On July 25, 2018, the Company completed a non-brokered private placement of 227,273 flow-through common shares at a price of C$13.20 per share for gross proceeds of $2,304 before share issuance costs of $31. The Company bifurcated the gross proceeds between share capital of $1,913 and flow-through share premium of $391. On June 30, 2017 and July 14, 2017, the Company completed two tranches of a private placement of 329,000 flow-through common shares at a price of C$15.20 per flow-through share for combined gross proceeds of $3,891, before share issuance costs of $30. The Company bifurcated the gross proceeds between share capital of $3,182 and flow-through share premium of $709. (b) Stock options The Company has adopted an incentive stock option plan which provides that the Board of Directors of the Company may from time to time, in their discretion, and in accordance with Toronto Stock Exchange requirements, grant to its directors, officers, employees and consultants of the Company, non-transferable options to purchase common shares, provided that the number of common shares reserved for issue does not exceed 10% of the number of then outstanding common shares. Such options can be exercisable for a maximum of five years from the date of grant. The exercise price of each stock option is set by the Board of Directors at the time of grant but cannot be less than the market price. Vesting of stock options is at the discretion of the Board of Directors at the time the options are granted. The following table summarizes the changes in share options for the year ended December 31: 2018 2017 Weighted Weighted average average Number of exercise price Number of exercise price options (in CAD) options (in CAD) Outstanding, January 1, 6,454,327 $ 9.32 7,524,727 $ 9.05 Granted 615,592 1,067,875 12.83 Exercised (1,576,500) (1,822,025) 9.40 Expired (882,750) (290,000) 14.64 Forfeited (47,750) (26,250) 10.43 Outstanding, December 31, 4,562,919 $ 6,454,327 $ 9.32 For options exercised during the period, the related weighted average share price at the time of exercise was C$10.76 (2017 – C$13.33). The following table summarizes information about share options outstanding and exercisable at December 31, 2018: Share options outstanding Share options exercisable Weighted Number of Weighted Number of average options average years options exercise price Exercise prices (in CAD) outstanding to expiry exercisable (in CAD) $5.85 - $7.99 1,647,075 1,647,075 $ $8.00 - $9.99 1,615,469 1,214,877 $10.00 - $11.99 130,000 77,200 $12.00 - $13.99 1,135,375 319,530 $14.00 - $15.99 35,000 35,000 Outstanding, December 31, 2018 4,562,919 3,293,682 $ The total share-based compensation expense for the year ended December 31, 2018 was $3,502 (2017 – $3,733) of which $3,502 (2017 – $2,367) was expensed in the statement of earnings (loss) and nil (2017 – $1,366) was capitalized to mineral properties, plant and equipment. The following are the weighted average assumptions employed to estimate the fair value of options granted for the year ended December 31, 2018 and 2017 using the Black-Scholes option pricing model: For the year ended December 31, December 31, 2018 2017 Risk-free interest rate 2.23 % 1.42 % Expected volatility 58.46 % 63.63 % Expected life 5 years 5 years Expected dividend yield Nil Nil Option pricing models require the input of subjective assumptions including the expected price volatility, and expected option life. Changes in these assumptions may have a significant impact on the fair value calculation. (c) 2015 RSU Plan – RSU's The Company adopted the 2015 RSU Plan to allow the Board of Directors to grant its employees and consultants, non-transferable share units based on the value of the Company’s share price at the date of grant. The awards have a graded vesting schedule over a three-year period and can be either cash or equity settled upon vesting at the discretion of the Board of Directors. The associated compensation cost is recorded in share-based compensation expense unless directly attributable to mineral properties, plant and equipment. The following table summarizes the changes in RSU’s for the year ended December 31: 2018 2017 Weighted Weighted Number of average fair Number of average fair RSU's value (in CAD) RSU's value (in CAD) Outstanding, January 1, 729,064 $ 14.41 735,729 $ 10.65 Granted 481,230 9.78 370,472 12.96 Settled (385,063) 9.67 (355,648) 13.07 Forfeited (83,345) 11.16 (21,489) 13.85 Outstanding, December 31, 741,886 $ 11.31 729,064 $ 14.41 At December 31, 2018, a liability of $1,271 (2017 – $2,715) was outstanding and included in accounts payable and accrued liabilities. For the year ended December 31, 2018, $1,558 (2017 – $3,365) was expensed in the statement of earnings (loss) as share-based compensation expense and nil (2017 – $687) was capitalized to mineral properties, plant and equipment. (d) 2015 RSU plan – PSU’s PSU’s are granted to senior executive management under the 2015 RSU Plan. The PSU’s vest at the end of the third year and the number of units to be issued on the vesting date will vary from 0% to 200% of the number of PSU’s granted, depending on the Company’s total shareholder return compared to the return of a selected group of peer companies. The following table summarizes the changes in PSU’s for the year ended December 31: 2018 2017 Weighted Weighted Number of average fair Number of average fair PSU's value (in CAD) PSU's value (in CAD) Outstanding, January 1, 74,140 $ — $ — Granted 91,945 74,140 13.08 Outstanding, December 31, 166,085 $ 74,140 $ 14.41 At December 31, 2018, a liability of $231 (2017 – $15) was outstanding and included in accounts payable and accrued liabilities. For the year ended December 31, 2018, $226 (2017 – $15) was expensed in the statement of earnings (loss) as share-based compensation expense. (e) 2018 DSU Plan – DSU’s During the year ended December 31, 2018, the Company established a DSU plan (“2018 DSU Plan”) for the benefit of the directors of the Company. Pursuant to the plan, eligible directors can elect to receive all or part of their total cash compensation in the form of DSU’s. The number of DSU’s granted to an eligible director is determined by dividing the portion of the compensation to be paid in DSU’s by the fair market value of the Company’s common shares on the conversion date. In addition, the Board may, at its discretion, grant additional DSU’s to plan participants. Each eligible director will be required to hold DSU’s received until the eligible director ceases to be a director of the Company, following which the DSU’s will be settled in cash. The following table summarizes the changes in DSU’s for the year ended December 31: 2018 2017 Weighted Weighted Number of average fair Number of average fair DSU’s value (in CAD) DSU’s value (in CAD) Outstanding, January 1, — $ — — $ — Granted 117,587 — — Outstanding, December 31, 117,587 $ — $ — At December 31, 2018, a liability of $997 (2017 – nil) was outstanding and included in accounts payable and accrued liabilities. For the year ended December 31, 2018, $1,014 (2017 – nil) was expensed in the statement of earnings (loss) as share-based compensation expense. (f) Earnings (loss) per share The calculation of diluted earnings (loss) per share was based on earnings (loss) attributable to ordinary shareholders and the weighted-average number of shares outstanding after adjustments for the effect of potential dilutive shares. For the year ended December 31, 2018, potential share issuances arising from the exercise of share options and the settlement of restricted share units in common shares were included in the calculation of diluted weighted average shares outstanding as well as their impact on earnings (loss) attributable to shareholders of the Company. Potentially dilutive shares associated with the convertible notes and share options (out of the money) were not included in the diluted earnings (loss) per share calculation as their effect was anti-dilutive. The following table summarizes the calculation of basic and diluted earnings (loss) per share: For the year ended December 31, December 31, 2018 2017 Net earnings (loss) for the year $ 36,620 $ (16,453) Basic weighted average number of common shares outstanding 182,905,004 181,208,295 Effective impact of dilutive securities: Share options 955,963 — Restricted share units 20,950 — Diluted weighted average number of common shares outstanding 183,881,917 181,208,295 Earnings (loss) per share Basic $ 0.20 $ (0.09) Diluted $ 0.20 $ (0.09) |
RELATED PARTIES
RELATED PARTIES | 12 Months Ended |
Dec. 31, 2018 | |
RELATED PARTIES | |
RELATED PARTIES | 18. RELATED PARTIES Transactions with key management Key management includes the Company’s directors (executive and non-executive) and executive officers including its Executive Chairman (“Exec Chair”), its President and Chief Executive Officer, its Executive Vice President and Chief Financial Officer, its Vice President, Operations, its Vice President and Chief Exploration Officer, and its Executive Vice President, Corporate Affairs and Sustainability. Directors and key management compensation: For the year ended December 31, December 31, 2018 2017 Salaries and benefits $ 5,851 $ 9,228 Share-based compensation 3,559 5,029 $ 9,410 $ 14,257 Under the terms of the Exec Chair’s employment agreement, effective January 1, 2017, the Exec Chair is entitled to a retirement allowance which remains due and payable in full in the event the Exec Chair terminates his employment with the Company. In 2017, the entire retirement allowance was expensed in the amount of $4,469 (C$6,000). The retirement allowance remains a current liability as at December 31, 2018 (note 9). |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 12 Months Ended |
Dec. 31, 2018 | |
SUPPLEMENTAL CASH FLOW INFORMATION | |
SUPPLEMENTAL CASH FLOW INFORMATION | 19. SUPPLEMENTAL CASH FLOW INFORMATION The net change in non-cash working capital items included in mineral properties, plant and equipment were as follows: For the year ended December 31, December 31, 2018 2017 Taxes receivable $ — $ 4,522 Accounts payable and accrued liabilities (9,168) (89,358) $ (9,168) $ (84,836) The net change in the Company’s financing liabilities were as follows: Long-term Convertible debt notes Liabilities from financing activities, January 1, 2017 $ 501,160 $ — Advance under credit facility 97,000 — Net proceeds from convertible notes — 95,795 Cash payments — (1,319) Other non-cash movements 69,835 (17,894) Liabilities from financing activities, December 31, 2017 $ 667,995 $ 76,582 Proceeds from loan facility, net of transaction costs 472,384 — Cash payments (659,724) (2,250) Other non-cash movements 61,560 7,818 Liabilities from financing activities, December 31, 2018 $ 542,215 $ 82,150 |
FINANCIAL RISK MANAGEMENT
FINANCIAL RISK MANAGEMENT | 12 Months Ended |
Dec. 31, 2018 | |
FINANCIAL RISK MANAGEMENT | |
FINANCIAL RISK MANAGEMENT | 20. FINANCIAL RISK MANAGEMENT Financial risk management The Company has exposure to a variety of financial risks: market risk (including currency risk, interest rate risk and commodity price risk), credit risk and liquidity risk from its use of financial instruments. This note presents information about the Company’s exposure to each of these risks, the Company’s objectives, policies and processes for measuring and managing risk, and the Company’s management of capital. Risk management is the responsibility of management and is carried out under policies approved by the Board of Directors. Material risks are monitored and are regularly discussed with the Audit Committee and Board of Directors. (a) Market risk Market risk is the risk that changes in market price, such as foreign exchange rates, interest rates and commodity prices which will affect the Company’s cash flows or value of its financial instruments. (i) Currency risk The Company is subject to currency risk on financial instruments which are denominated in currencies that are not the same as the functional currency of the entity that holds them. Exchange gains and losses would impact earnings (loss). The Company is exposed to currency risk through cash and cash equivalents, receivables and other excluding trade receivables, restricted cash and accounts payable and accrued liabilities which are denominated in CAD. The Company has not hedged its exposure to currency fluctuations at this time. The following table shows the impact on pre-tax earnings of a 10% change in the USD/CAD exchange rate on financial assets and liabilities denominated in CAD, as of December 31, 2018, with all other variables held constant: Impact of currency rate change on pre-tax earnings 10% increase 10% decrease Cash and cash equivalents $ 1,085 $ (1,085) Receivables and other, excluding trade receivables 90 (90) Restricted cash 203 (203) Accounts payable and accrued liabilities (4,905) 4,905 In addition to currency risk from financial instruments, a significant portion of the Company’s mine production costs, capital expenditures and corporate administrative costs are denominated in CAD. Consequently, fluctuations in the USD exchange rate against the CAD increases the volatility of cost of sales and corporate administrative costs. (ii) Interest rate risk The Company is subject to interest rate risk with respect to its investments in cash and cash equivalents. The Company’s current policy is to invest cash at floating rates of interest and cash reserves are to be maintained in cash and cash equivalents in order to maintain liquidity, while achieving a satisfactory return for shareholders. Fluctuations in interest rates when cash and cash equivalents mature impact interest income earned. The Company is subject to interest rate risk with respect to its loan facility. Interest rates associated with this facility are based on LIBOR and the administrative agents' base rate which fluctuates based on market conditions. The Company is also subject to interest rate risk with respect to the fair value of the offtake obligation which is accounted for at FVTPL. The following table shows the impact on pre-tax earnings of a 1% change in interest rates on financial assets and liabilities as of December 31, 2018, with all other variables held constant: Impact of interest rate change on pre-tax earnings 1% increase 1% decrease Cash and cash equivalents $ 1,087 $ (1,087) Senior secured loan facility (173) 173 Offtake obligation 2,049 (1,947) (iii) Commodity price risk The Company is subject to commodity price risk from fluctuations in the market prices for gold and silver. Commodity price risks are affected by many factors that are outside the Company’s control including global or regional consumption patterns, the supply of and demand for metals, speculative activities, the availability and costs of metal substitutes, inflation and political and economic conditions. The financial instruments impacted by commodity prices are the trade receivables and the offtake obligation (a derivative liability). Price adjustments are made in subsequent periods to the customer receivables for concentrate sales transactions based on movements in market prices prior to final pricing. As a result, concentrate sales receivables are fair valued and adjusted each period to reflect forward market prices to the estimated settlement date. The Company has not hedged the price of any commodity at this time as it is not permitted to hedge under the terms of the offtake obligation. The following table shows the impact on pre-tax earnings from changes in the fair values of financial instruments with a 10% change in gold and silver commodity prices. The impact of a 10% movement in commodity prices as of December 31, 2018, with all other variables held constant, is as follows: Impact of price change on pre-tax earnings 10% increase 10% decrease Trade receivables $ 8,844 $ (8,844) Offtake obligation (2,588) 3,799 (b) Credit risk Credit risk is the risk of potential loss to the Company if the counterparty to a financial instrument fails to meet its contractual obligations. The Company's credit risk is primarily attributable to its liquid financial assets including cash and cash equivalents, trade receivables, tax receivables and restricted cash. The carrying amount of financial assets represents the maximum credit exposure: December 31, December 31, 2018 2017 Cash and cash equivalents $ 45,407 $ 56,285 Trade receivables 14,487 11,067 Tax receivables 420 6,166 Restricted cash 2,029 5,036 $ 62,343 $ 78,554 The Company limits its exposure to credit risk on financial assets through investing its cash and cash equivalents and restricted cash with high-credit quality financial institutions. Management believes the risk of loss related to these deposits to be low. The Company continually evaluates changes in the status of its counterparties. We are exposed to credit risk through our trade receivables, which are principally with internationally recognized counterparties. The Company sells its gold and silver to its lenders, refineries located in Canada and the United States and trading companies. The Company has had limited instances of default from its counterparties. The Company continually evaluates its counterparties in which it sells its product. The Company is not economically dependent on a limited number of customers for the sale of its gold and silver as its products can be sold through numerous world-wide commodity markets. As at December 31, 2018, the Company has $14,487 (2017 – $11,067) receivables related to its gold and silver revenue. (c) Liquidity risk Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they come due. The Company’s approach to managing liquidity is to ensure it will have sufficient liquidity to meet liabilities when due. The Company manages liquidity risk by monitoring actual and projected cash flows and matching the maturity profile of its financial assets and liabilities. Cash flow forecasting is performed regularly. To the extent the Company does not believe it has sufficient liquidity to meet obligations, it will consider securing additional debt or equity funding. The Company's cash and cash equivalents are currently invested in business and savings accounts with high-credit quality financial institutions which are available on demand by the Company for its operating and capital expenditures. The Company also holds government and surety bonds to support future environmental obligations. The Company’s financial obligations consist of accounts payable and accrued liabilities including the restricted share unit liability, long-term debt consisting of the loan facility and the offtake obligation, and the convertible notes. As at December 31, 2018, the Company has cash and cash equivalents of $45,407 and a working capital (current assets less current liabilities) deficit of $48,163. On December 18, 2018, the Company completed a $480,000 loan facility with a syndicate of financial institutions arranged by the Bank of Nova Scotia, ING Capital LLC and SG Americas Securities, LLC which was used to refinance the credit facility in the total amount of $422,724. The additional funds from the loan facility and cash on hand generated from operating activities were used to repurchase the stream obligation for $237,000. Based on management’s cash flow projections, the Company expects that future operating and debt settlement requirements will be satisfied from operating cash flows. The maturity analysis of financial liabilities as at December 31, 2018 is as follows: More than 1 year 2-3 years 4-5 years 5 years Total Principal repayments on loan facility $ 80,000 $ 133,333 $ 266,667 $ — $ 480,000 Convertible notes — — 100,000 — 100,000 Interest payments on loan facility (1) 25,186 35,890 12,041 — 73,117 Accounts payable and accrued liabilities 43,385 — — — 43,385 Interest on convertible notes 2,250 4,500 1,116 — 7,866 Restricted share unit liability — — 1,502 Finance lease obligation 35 — 839 $ 152,046 $ 174,804 $ 379,859 $ — $ 706,709 (1) Interest payments on the loan facility represent management’s best estimate based on current LIBOR and the Company’s projected applicable margin in accordance with the terms of the loan facility. Capital management The Company’s objectives in the managing of capital are to safeguard the Company’s ability to continue as a going concern and provide financial capacity to meet its strategic objectives. Management monitors the amount of cash, debt instruments and equity in the capital structure and adjusts the capital structure, as necessary, to support the operation, development and exploration of its mine and projects. The capital structure of the Company consists of debt instruments and equity attributable to common shareholders, comprising of issued share capital, contributed surplus, AOCI and accumulated deficit. The Company manages the capital structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying assets. To maintain or adjust the capital structure, the Company may attempt to issue new shares, issue new debt, acquire or dispose of assets to facilitate the management of its capital requirements. The Company prepares detailed annual budgets and cash flow forecasts for mining, development and corporate activities that are approved by the Board of Directors. Forecasts are regularly reviewed and updated for changes in circumstances so that appropriate capital allocation, investment and financing decisions are made for the Company. Fair value estimation The Company’s financial assets and liabilities are measured and recognized according to a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable inputs. The three levels of fair value hierarchy are as follows: Level 1: Quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). Level 3: Inputs for the asset or liability that are not based on observable market data The carrying values of cash and cash equivalents, receivables and other, accounts payable and accrued liabilities and the loan facility approximate their fair values due to the short-term maturity of these financial instruments. The following tables present the Company’s financial assets and liabilities by level within the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value. Carrying value Fair value Amortized Other financial As at December 31, 2018 FVTPL cost liabilities Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ — $ 45,407 $ — $ — $ — $ — Trade receivables 14,487 — — — 14,487 — Restricted cash — 2,029 — — — — $ 14,487 $ 47,436 $ — $ — $ 14,487 $ — Financial liabilities Accounts payable and accrued liabilities $ — $ — $ 43,048 $ — $ — $ — Restricted share unit liability 1,502 — — — 1,502 — Deferred share unit liability 997 — — — 997 — Senior secured loan facility — — 472,146 — — — Offtake obligation 70,069 — — — — 70,069 Debt portion of convertible note — — 82,150 — 82,150 — $ 72,568 $ — $ 597,344 $ — $ 84,649 $ 70,069 Carrying value Fair value Loans and Other financial As at December 31, 2017 FVTPL receivables liabilities Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ — $ 56,285 $ — $ — $ — $ — Trade receivables — 11,067 — — 11,067 — Other assets 132 — — — — 132 Restricted cash — 5,036 — — — — $ 132 $ 72,388 $ — $ — $ 11,067 $ 132 Financial liabilities Accounts payable and accrued liabilities $ — $ — $ 53,436 $ — $ — $ — Restricted share unit liability 2,730 — — — 2,730 — Senior secured term credit facility — — 365,890 — — — Offtake obligation 78,085 — — — — 78,085 Stream obligation (1) 224,020 — — — — 224,020 Debt portion of convertible note — — 76,582 — 76,582 — $ 304,835 $ — $ 495,908 $ — $ 79,312 $ 302,105 (1) The stream obligation was recorded at fair value at each statement of financial position date as the Company determined that the stream obligation was in substance a debt instrument with embedded derivatives linked to gold and silver commodity prices and interest rates. The Company elected to measure the stream obligation in its entirety at FVTPL. The embedded derivative assets were valued using Monte Carlo simulation valuation models with principal inputs related to the credit facility including the risk-free interest rate and the Company’s and lender’s credit spread. The offtake and stream obligations were valued using Monte Carlo simulation valuation models. The key inputs used by the Monte Carlo simulation in valuing both the offtake and stream obligations include: the gold forward curve based on Comex futures, long-term gold volatility, call option exercise prices and risk-free rate of return. In addition, in valuing the stream obligation, management used the following significant observable inputs: the silver forward curve based on Comex futures and the long-term silver volatility and gold/silver correlation. The valuation of the offtake and stream obligations also require estimation of the Company’s non-performance or credit risk and the anticipated production schedule of gold and silver ounces delivered over the life of mine. |
TAXATION
TAXATION | 12 Months Ended |
Dec. 31, 2018 | |
TAXATION | |
TAXATION | 21. TAXATION (a) Deferred income tax liability The tax effects of temporary differences between amounts recorded in the Company’s accounts and the corresponding amounts as computed for income tax purposes gives rise to deferred tax liability as follows: December 31, December 31, 2018 2017 Tax loss carry forwards $ 74,400 $ 53,266 Long term debt 10,798 22,525 Investment tax credits 6,545 6,545 Financing costs 4,310 4,288 Other 2,080 756 Decommissioning and restoration provision — 4,978 Inventories (847) (964) Provincial mining tax attributes (6,088) — Mineral interests (106,434) (91,394) $ (15,236) $ — Deductible temporary differences for which no deferred tax assets are recognized are as follows: December 31, December 31, 2018 2017 Provincial mining tax attributes $ 18,947 $ 16,408 Decommissioning and restoration provision 18,947 — Other 68 68 Tax loss carry forwards — 59,472 $ 37,962 $ 75,948 The Company has tax losses in Canada of approximately $275,265 (2017 - $256,463) expiring in various amounts from 2030 to 2038. The Company also has investment tax credits totaling approximately $8,965 (2017 - $8,965). The Company has deductible temporary differences for which no deferred tax assets have been recognized of $37,962 (2017 - $75,948). A deferred tax asset has not been recognized in respect of the differences, as it is not probable that sufficient future taxable earnings will be available in the periods when deductions from such potential assets will be realized. (b) Income tax expense (recovery) The Company’s income tax expense (recovery) is comprised of the following: For the year ended December 31, December 31, 2018 2017 Current tax expense $ 4,196 $ 1,621 Deferred income tax expense (recovery) 12,668 (7,022) $ 16,864 $ (5,401) The provision for income taxes differs from the amount calculated using the Canadian federal and provincial statutory income tax rates of 27.0% (2017 – 26.0%) as follows: For the year ended December 31, December 31, 2018 2017 Expected tax (recovery) expense $ 14,441 $ (5,680) Change in income tax rates — (574) Provincial mining taxes 800 1,621 Change in unrecognized temporary differences (10,942) 7,679 Share-based compensation and other items 943 988 Flow-through shares 823 842 Flow-through share premium (526) (574) Impact of foreign exchange on CAD denominated tax attributes 11,735 (12,550) Non-temporary differences (410) 2,847 $ 16,864 $ (5,401) |
COMMITMENTS
COMMITMENTS | 12 Months Ended |
Dec. 31, 2018 | |
COMMITMENTS | |
COMMITMENTS | 22. COMMITMENTS The following table provides the Company’s gross contractual obligations as of December 31, 2018: More than 1 year 2-3 years 4-5 years 5 years Total Principal repayments on loan facility $ 80,000 133,333 $ 266,667 $ — $ 480,000 Repayment of convertible notes 2,250 4,500 101,116 — 107,866 Interest payments on loan facility (1) 25,186 35,890 12,041 — 73,117 Decommissioning and restoration provision 422 51 — 18,474 18,947 Operating leases 4,571 7,649 1,462 122 13,804 Purchase commitments 5,568 — — — 5,568 Finance lease obligation 277 527 35 — 839 $ 118,274 $ 181,950 $ 381,321 $ 18,596 $ 700,141 (1) Interest payments on the loan facility represent management’s best estimate based on current LIBOR and the Company’s projected applicable margin in accordance with the terms of the loan facility. (a) Commitments – Brucejack Mine The Company and the Nisga’a Nation have entered into a comprehensive Cooperation and Benefits Agreement in respect of the Brucejack Mine. Under the terms of the Agreement, the Nisga’a Nation will provide ongoing support for the development and operation of Brucejack with participation in its economic benefits. The Brucejack Mine is subject to a 1.2% net smelter returns royalty (“1.2% NSR royalty”) on production in excess of cumulative 503,386 ounces of gold and 17,907,080 ounces of silver. The gold ounce production threshold for the 1.2% NSR royalty was met in December 2018. For the year ended December 31, 2018, $258 (2017 – nil) was expensed to royalties and selling costs in the statement of earnings (loss). (b) Commitments – Offtake obligation Under the offtake agreement, the Company is obligated to sell 100% of refined gold (in excess of any delivered ounces pursuant to the stream obligation) up to 7,067,000 ounces. The final purchase price to be paid by the purchaser will be, at the purchaser’s option, a market referenced gold price in USD per ounce during a defined pricing period before and after the date of each sale. |
CONTINGENCIES
CONTINGENCIES | 12 Months Ended |
Dec. 31, 2018 | |
CONTINGENCIES | |
CONTINGENCIES | 23. CONTINGENCIES The Company is involved in various claims, litigation and other matters in the ordinary course and conduct of business. Some of these pending matters will take a number of years to resolve. While it is not possible to determine the ultimate outcome of such actions at this time, and inherent uncertainties exist in predicting such outcomes, it is the Company’s belief that the ultimate resolution of such actions is not reasonably likely to have a material adverse effect on its consolidation financial position or results of operations. (a) Canadian class action On October 29, 2013, David Wong, a shareholder of the Company, filed a proposed class action against the Company, Robert Quartermain (a director, and the President and the CEO of the Company at such time) and Snowden Mining Industry Consultants Ltd. (the “Wong Action”). The Wong Action was filed in the Ontario Superior Court of Justice. The Wong Action alleges that the price of our shares on the TSX and NYSE suffered a significant drop in value following the announcement on October 9, 2013 of the resignation of Strathcona Mineral Services Ltd. (“Strathcona”), the consultant responsible for overseeing and reporting on the 10,000-tonne bulk sample, and the announcement of Strathcona’s reasons for resigning on October 22, 2013. The Wong Action claims C$60,000 in general damages on behalf of a class of persons who acquired the Company’s securities between July 23, 2013 and October 21, 2013. Snowden Mining Industry Consultants Ltd. is no longer a defendant in the Wong Action. The plaintiff in the Wong Action brought a motion for leave to commence an action under the secondary market provisions in Part XXIII.1 of the Ontario Securities Act. The motion was heard on May 29 and 30, 2017. The Court allowed the plaintiff’s motion on July 20, 2017. The Company was denied leave to appeal this decision. The Company and Robert Quartermain consented to, and on January 23, 2019 the Court granted, an order certifying the Wong Action as a class proceeding pursuant to the Class Proceedings Act (Ontario). The Company believes that the allegations made against it in the Wong Action are meritless and will vigorously defend them, although no assurance can be given with respect to the ultimate outcome. The Company has not accrued any amounts for the Wong Action. (b) 2013 United States class actions Between October 25, 2013 and November 18, 2013, five putative class action complaints were filed in the United States against the Company and certain of its officers and directors, alleging that defendants violated the United States securities laws by misrepresenting or failing to disclose material information concerning the Brucejack Mine. All five actions were filed in the United States District Court for the Southern District of New York (the “District Court”). In January 2014, the District Court ordered that these actions be consolidated into a single action, styled In re Pretium Resources Inc. Securities Litigation, Case No. 13‑CV‑7552. The District Court appointed as lead plaintiffs in the consolidated action three individuals who are suing on behalf of a putative class of shareholders who purchased or otherwise acquired the Company’s common shares between June 11, 2013 and October 22, 2013. In March 2014, the plaintiffs filed a consolidated amended class action complaint, which the Company moved to dismiss in May 2014. In July 2014, the plaintiffs filed a second consolidated amended class action complaint (“Second Amended Complaint”). The Company moved to dismiss the Second Amended Complaint on September 5, 2014. Plaintiffs filed their Opposition to the Company’s Motion to Dismiss on October 20, 2014, and the Company filed a reply brief on November 19, 2014. In June 2017, the District Court granted the Company’s Motion to Dismiss the Second Amended Complaint. The District Court ruled in favour of the Company and the officers and directors named as defendants on all claims and ordered the case closed. The plaintiffs filed their Notice of Appeal from the decision, to the United States Court of Appeals for the Second Circuit (the “Second Circuit”), on July 10, 2017. The plaintiffs’ opening brief on appeal was filed on October 2, 2017. The Company filed its response brief on December 8, 2017 and the plaintiffs filed their reply brief on December 22, 2017. Oral argument on the plaintiffs’ appeal was heard by the Second Circuit on March 16, 2018. On May 1, 2018, the Second Circuit affirmed the District Court’s order dismissing the plaintiffs’ Second Amended Complaint in its entirety for failure to state a claim under the U.S. securities laws. (c) 2018 United States class actions Two putative class action complaints were filed against the Company and certain of its officers in the United States District Court for the Southern District of New York, one on September 7, 2018 and the other on October 19, 2018. The complaints have been filed on behalf of an alleged class of all persons and entities who purchased or acquired shares of the Company between July 21, 2016 and September 6, 2018, and relate to public disclosures of the Company made between July 2016 and September 2018 regarding the Brucejack Mine. The Company has been served with one of the two complaints. Aurico Gold Fund LP has filed a motion to consolidate the two cases, appoint itself as lead plaintiff, and approve lead plaintiff’s selection of counsel. The Company has retained legal counsel in connection with these matters. The Company believes that the allegations made against it and its officers in the aforementioned complaints are meritless and will vigorously defend them, although no assurance can be given with respect to the ultimate outcome. The Company has not accrued any amounts for these actions. (d) Construction claims On April 24, 2017, Bear Creek Contracting Ltd. (“Bear Creek”) filed a Notice of Civil Claim against the Company (the “Bear Creek Action”) alleging that the Company owes Bear Creek C$14,563 in general damages in connection with work undertaken at the Brucejack Mine transmission line. The Bear Creek Action was filed in the Supreme Court of British Columbia. The Company filed a Response to Civil Claim on July 31, 2017, opposing all of the claims and allegations made. Notices of Civil Claim have also been filed by Blue Max Drilling Inc. (April 24, 2017), More Core Diamond Drilling Services Ltd. (March 27, 2017), and Lakelse Air Ltd. (February 23, 2018) who were subcontractors working under Bear Creek. Responses to Civil Claim have been filed in those actions and the claims are understood to be subsumed in the amount claimed by Bear Creek. It is expected that the four actions will be joined. The Company believes that the allegations made against it in the Bear Creek Action, and the other actions, are meritless and will vigorously defend the matter, although no assurance can be given with respect to the ultimate outcome of such proceedings. The Company has not accrued any amounts for any of the actions. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
SIGNIFICANT ACCOUNTING POLICIES | |
Basis of consolidation | Basis of consolidation These consolidated financial statements include the financial statements of the Company and the entities controlled by the Company, its subsidiaries, listed in the following table: Name of subsidiary Place of Proportion of Principal activity Pretium Exploration Inc. British Columbia, Canada 100% Holds interest in the Brucejack Mine and Snowfield Project 0890696 BC Ltd. British Columbia, Canada 100% Holds real estate in Stewart, British Columbia Control is defined as the exposure, or rights, to variable returns from involvement with an investee and the ability to affect those returns through power over the investee. Power over an investee exists when the Company has existing rights that give the Company the ability to direct the activities that significantly affect the investee’s returns. This control is generally evidenced through owning more than 50% of the voting rights or currently exercisable potential voting rights of a subsidiary’s share capital. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. Intercompany balances and transactions, including any unrealized income and expenses arising from intercompany transactions, are eliminated in preparing the consolidated financial statements. |
Foreign currency translation | Foreign currency translation Functional and presentation currency Items included in the financial statements of each consolidated entity are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The functional currency of the Company and its subsidiaries is the United States dollar (“USD”), which is also the Company’s presentation currency. References to “$” or “USD” are to United States dollars, while references to “C$” or “CAD” are to Canadian dollars. Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuations where items are re-measured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at period end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in earnings (loss) for the year. |
Financial instruments | Financial instruments The following accounting policies reflect the Company’s adoption of IFRS 9 effective January 1, 2018. For the year ended December 31, 2017, the Company applied policies based on IAS 39. The effects of the transition from IAS 39 to IFRS 9 are described in the change in accounting policies section of note 2. Financial assets – Classification Financial assets are classified at initial recognition as either: measured at amortized cost, FVTPL or FVOCI. The classification depends on the Company’s business model for managing the financial assets and the contractual terms of the cash flows. For assets measured at fair value, gains and losses will either be recorded in earnings (loss) or OCI. For investments in debt instruments, this will depend on the business model in which the investment is held. For investments in equity instruments that are not held for trading, this will depend on whether the Company has made an irrevocable election at the time of initial recognition to account for the equity investment at FVOCI. The Company reclassifies debt investments when and only when its business model for managing those assets changes. Financial assets – Measurement At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset not at FVTPL, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at FVTPL are expensed in earnings (loss). Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payment of principal and interest. Subsequent measurement of debt instruments depends on the Company’s business model for managing the asset and the cash flow characteristics of the asset. There are three measurement categories into which the Company classifies its debt instruments: · Amortized cost – Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortized cost. A gain or loss on a debt investment that is subsequently measured at amortized cost and is not part of a hedging relationship is recognized in earnings (loss) when the asset is derecognized or impaired. Interest income from these financial assets is included in interest and finance income using the effective interest rate method. · FVOCI – Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets’ cash flows represent solely payments of principal and interest, are measured at FVOCI. Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains and losses which are recognized in earnings (loss). When the financial asset is derecognized, the cumulative gain or loss previously recognized in OCI is reclassified from equity to earnings (loss) and recognized in other gains (losses). Interest income from these financial assets is included in interest and finance expense using the effective interest rate method. Foreign exchange gains and losses are presented in foreign exchange gain (loss) and impairment expenses in other expenses. · FVTPL – Assets that do not meet the criteria for amortized cost or FVOCI are measured at FVTPL. A gain or loss on a debt investment that is subsequently measured at FVTPL and is not part of a hedging relationship is recognized in earnings (loss) and presented net in the statement of earnings (loss) within other gains (losses) in the period in which it arises. Changes in the fair value of financial assets at FVTPL are recognized in loss on financial instruments at fair value in the statement of earnings (loss) as applicable. Impairment of financial assets The Company assesses on a forward looking basis the expected credit losses associated with its debt instruments carried at amortized cost and FVOCI. The impairment methodology depends on whether there has been a significant increase in credit risk. Cash and cash equivalents and restricted cash Cash and cash equivalents comprise cash holdings in business and savings accounts held at major financial institutions with an original maturity date of three months or less. Restricted cash is held at major financial institutions as collateral for reclamation and surety bonds. Cash and restricted cash are classified at amortized cost. Interest income is recognized by applying the effective interest rate method. Receivables and other The Company’s trade receivables result from sales transactions in accordance with IFRS 15, Revenue from Contracts with Customers and contain provisional pricing arrangements. These trade receivables are classified as FVTPL with the gain (loss) included in revenue. Accounts payable and accrued liabilities and debt Accounts payable and accrued liabilities, the debt portion of the convertible notes, the senior secured term credit facility and the senior secured loan facility are recognized initially at fair value, net of any directly attributable transaction costs. Subsequent to initial recognition these financial liabilities are held at amortized cost using the effective interest method. Derivatives Derivative instruments, including embedded derivatives in financial liabilities or non-financial contracts, such as the offtake obligation and stream obligation are recorded at FVTPL and, accordingly, are recorded on the statement of financial position at fair value. Fair values for derivative instruments are determined using valuation techniques, with assumptions based on market conditions existing at the statement of financial position date or settlement date of the derivative. Stream obligation The Company has determined the stream obligation was in substance a debt instrument with embedded derivatives linked to gold and silver commodity prices and interest rates. The Company elected to classify and measure the entire hybrid stream obligation as a financial liability carried at fair value with changes in fair value recorded through earnings (loss). IFRS 9 requires the gain or loss associated with changes in the fair value of the stream be recorded in earnings (loss), except for changes in fair value attributable to changes in the credit risk of the liability, which must be presented in OCI. The liability’s credit risk is represented by the difference between the discount rate associated with the liability and the risk-free rate. |
Inventories | Inventories Ore stockpiles, in-circuit and finished metal inventory (gold and silver) are valued at the lower of weighted average production cost and net realizable value. Production costs include the cost of raw materials, direct labour, mine-site overhead expenses and applicable depreciation and depletion of mineral properties, plant and equipment. Net realizable value is calculated as the estimated price at the time of sale based on prevailing and long-term metal prices less estimated future production costs to convert the inventories into saleable form and estimated costs to sell. Ore stockpile inventory represents ore on the surface or underground that has been extracted from the mine and is available for further processing. In-circuit inventory represents material in the mill circuit that is in the process of being converted into a saleable form. Finished metal inventory represents gold and silver doré and concentrate located at the mine, in transit to customers and at refineries. Materials and supplies inventories are valued at the lower of weighted average cost and net realizable value. Replacement costs of materials and spare parts are generally used as the best estimate of net realizable value. Any write-downs of inventory to net realizable value are recorded within cost of sales in the consolidated statements of earnings (loss). If there is a subsequent increase in the value of inventory, the previous write-downs to net realizable value are reversed up to cost to the extent that the related inventory has not been sold. |
Mineral properties | Mineral properties Mineral properties include the fair value attributable to mineral reserves and resources acquired in a business combination or asset acquisition, underground mine development costs and previously capitalized exploration and evaluation costs. Upon commencement of production, a mineral property is depleted using the unit-of-production method. Unit-of-production depletion rates are determined using gold ounces mined over the estimated recoverable proven and probable reserves at the mine. |
Development costs incurred during production | Development costs incurred during production The Company incurs development costs to build new raises and ramps (vertical development) that enable the Company to physically access ore underground. The time over which these costs will be incurred depends on the mine life. These underground development costs are capitalized as incurred. Capitalized underground development costs incurred to enable access to specific areas of the mine and which only provide an economic benefit over a specific the period of mining are depleted using a unit-of-production method determined using gold ounces mined over the estimated proven and probable reserves in that particular area of the mine. |
Plant and equipment | Plant and equipment Plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. The initial cost of an asset is comprised of its purchase price or construction cost, any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management and the estimated future cost of dismantling and removing the asset. The purchase price or construction cost is the fair value of consideration given to acquire the asset. Depreciation of plant and equipment commences when the asset has been fully commissioned and is available for its intended use. A majority of mine and site infrastructure assets, including buildings, roads and transmission lines are depreciated using a unit-of-production method over the life of mine. Depreciation is determined each period using gold ounces mined over the estimated proven and probable reserves of the mine. Depreciation of other assets, including those ancillary to the Brucejack Mine are calculated using the straight-line method to allocate cost over the estimated useful lives, as follows: Asset class Estimated useful life Mine and mill equipment 5 - 18 years Light vehicles 3 - 5 years Office and computer equipment 3 - 5 years Leasehold improvements Term of lease When significant components of an asset have different useful lives, depreciation is calculated on each separate component. Each asset or component’s estimated useful life has due regard to both its own physical life limitations and the present assessment of economically recoverable reserves of the Brucejack Mine. Depreciation methods and estimated useful lives and residual values are reviewed annually. Changes in estimates are accounted for prospectively. Expenditures on major maintenance or repairs includes the cost of the replacement of parts of assets and overhaul costs. Where an asset or part of an asset is replaced and it is probable that future economic benefits associated with the item will be available to the Company, the expenditure is capitalized and the carrying amount of the item replaced is derecognized. Similarly, overhaul costs associated with major maintenance are capitalized and depreciated over their useful lives where it is probable that the future economic benefits will be available and any remaining carrying amounts of the cost of previous overhauls are derecognized. All other costs are expensed as incurred. An item of plant and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on disposal of the asset, determined as the difference between the net disposal proceeds and the carrying amount of the asset, is recognized in the consolidated statement of earnings (loss). |
Construction in progress | Construction in progress Costs recorded for assets under construction are capitalized as construction in progress. On completion, the cost of construction is transferred to the appropriate category of mineral properties, plant and equipment. No depreciation is recorded until the assets are substantially complete and available for their intended use. |
Borrowing costs | Borrowing costs Borrowing costs that are directly attributable to the acquisition, construction or production of an asset that takes a substantial period of time to prepare for its intended use are capitalized as part of the cost of the asset. Capitalization of borrowing costs begins when there are borrowings and activities commence to prepare an asset for its intended use. Capitalization of borrowing costs ends when substantially all activity necessary to prepare a qualifying asset for its intended use are complete. When proceeds of project specific borrowings are invested on a temporary basis, borrowing costs are capitalized net of any investment income. |
Exploration and evaluation expenditures | Exploration and evaluation expenditures Exploration and evaluation expenditures include the costs of acquiring licenses and costs associated with exploration and evaluation activity. Exploration and evaluation expenditures are capitalized. Mineral property acquisition costs are capitalized. Exploration and evaluation costs incurred before the Company has obtained the legal rights to explore an area are expensed. Once the technical feasibility and commercial viability of the extraction of mineral reserves or resources from a particular mineral property has been determined, expenditures are reclassified to mineral properties within mineral properties, plant and equipment. The establishment of technical feasibility and commercial viability of a mineral property is assessed based on a combination of factors, including: · The extent to which mineral reserves or mineral resources as defined in National Instrument 43‑101 have been identified through a feasibility study or similar document; · The results of optimization studies and further technical evaluation carried out to mitigate project risks identified in the feasibility study; · The status of environmental permits; and · The status of mining leases or permits. Exploration and evaluation assets are tested for impairment immediately prior to reclassification to mineral properties. |
Mineral exploration tax credits | Mineral exploration tax credits Mineral exploration tax credits on eligible mineral exploration expenditures incurred are treated as a reduction of capitalized mineral properties. The credits are recorded when the amount is reliably measurable and it is considered probable that the tax credit will be recovered. |
Mineral recoveries | Mineral recoveries The incidental proceeds from the sale of gold recovered from activities conducted during the exploration and evaluation stage are offset against the carrying value of the associated mineral properties, plant and equipment. |
Impairment of non-financial assets | Impairment of non-financial assets The carrying amounts of assets included in mineral properties, plant and equipment are reviewed for impairment whenever facts and circumstances suggest that the carrying amounts may not be recoverable. If there are indicators of impairment, the recoverable amount of the asset is estimated in order to determine the extent of any impairment. Where the asset does not generate cash flows that are independent from other assets, the recoverable amount of the cash generating unit to which the asset belongs is determined. The recoverable amount of an asset or cash generating unit is determined as the higher of its fair value less costs of disposal and its value in use. An impairment loss exists if the asset’s carrying amount exceeds the recoverable amount, and is recorded as an expense immediately. Value in use is determined as the present value of the future cash flows expected to be derived from continuing use of an asset or cash generating unit in its present form. These estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or cash generating unit for which estimates of future cash flows have not been adjusted. Fair value is the price that would be received from selling an asset in an orderly transaction between market participants at the measurement date. Costs of disposal are incremental costs directly attributable to the disposal of an asset. Estimated future cash flows are calculated using estimated future prices, mineral reserves and resources and operating and capital costs. All inputs used are those that an independent market participant would consider appropriate. Tangible assets that have been impaired in prior periods are tested for possible reversal of impairment whenever events or changes in circumstances indicate that the impairment has reversed. If the impairment has reversed, the carrying amount of the asset is increased to its recoverable amount, but not beyond the carrying amount that would have been determined had no impairment loss been recognized for the asset in the prior periods. A reversal of an impairment loss is recognized into earnings (loss) immediately. |
Decommissioning and restoration provision | Decommissioning and restoration provision The Company has provisions for decommissioning and restoration costs which include the dismantling and demolition of infrastructure and the removal of residual materials and remediation of disturbed areas. Decommissioning and restoration costs are a normal consequence of mining and the majority of decommissioning and restoration expenditures are incurred at the end of the life of mine. Decommissioning and restoration costs are estimated and discounted to their net present value and capitalized to the carrying amount of the related asset along with the recording of a corresponding liability, as soon as the obligation to incur such costs arises. The discount rate used to calculate the net present value is a pre-tax rate that reflect risks specific to the liability. Each period the Company reviews cost estimates and other assumptions used in the valuation of the provision to reflect events, changes in circumstances and new information available. The liability is adjusted each year for the unwinding of the discount rate, changes to the current market-based discount rate and for the amount or timing of the underlying cash flows needed to settle the provision. |
Share capital | Share capital Common shares are classified as equity. Transaction costs directly attributable to the issue of common shares and share options are recognized as a deduction from equity, net of any tax effects. |
Flow-through shares | Flow-through shares The issuance of flow-through common shares results in the obligation to transfer the tax deductibility of the qualifying resource expenditures funded from the proceeds of the sale of such shares to the purchasers of the shares. On the issuance of such shares, the Company bifurcates the flow-through shares into: a flow-through share premium, equal to the estimated premium that investors pay for the flow-through feature, which is recognized as a liability, and share capital. As the related exploration expenditures are incurred, the Company derecognizes the premium liability and recognizes a related income tax recovery. |
Revenue recognition | Revenue recognition The Company produces doré and concentrates which contain both gold and silver. The doré is further processed to produce refined metals for sale. The concentrates may be sold to smelters in concentrate form or further processed to produce refined metals for sale. The Company’s performance obligations relate primarily to the delivery of gold and silver to its customers. For gold, the Company is required to deliver gold equivalent to 100% of production up to 7,067,000 ounces into an offtake agreement (note 10c). Revenue is recognized when control is transferred to the customer. Control transfers when a product is delivered to the customer, the customer has full discretion over the product and there is no unfulfilled obligation that could affect the customer’s acceptance of the product. Control over the refined gold or silver produced from doré or concentrate is transferred to the customer and revenue recognized upon delivery to the customer’s bullion account. Control over the gold and silver bearing concentrates is transferred to the customer and revenue recognized at the time the Company elects to settle the sale directly with the smelter or when the concentrates are loaded onto the vessel at the port of discharge, depending on the customer. Revenue from these sales are recognized net of treatment costs and refining charges. For each physical shipment of doré, 90% of the estimated contained gold is available to be delivered to the customer's bullion account within approximately 10 days of arrival at the refinery. The balance of the contained gold is delivered the customer's bullion account following the final processing outturn. For each physical shipment of doré, 100% of the contained silver is sold upon the final processing outturn. Silver revenue is recorded at the spot price on the date of sale. For any physical shipment of concentrate, where the Company receives the refined gold rather than a cash payment, 90% of the estimated contained gold received is available to be delivered to the customer’s bullion account within approximately 15 – 30 days after the bill of lading date. The balance of the contained gold is delivered to the customer’s bullion account following the final processing outturn. Revenue is required to be recognized at an amount that reflects the consideration to which the Company expects to be entitled in exchange for transferring the product to the customer. Sales of refined gold and silver are delivered directly into the offtake agreement and recorded at the spot price on the date of delivery. The final purchase price to be paid by the purchaser will be, at the purchaser’s option, a market referenced gold price in USD per ounce during a defined pricing period after the date of each sale. The difference between the spot price on the date of sale and the price paid by the purchaser reflects the settlement of a portion of the offtake obligation previously recorded on the statement of financial position. The Company receives payment for 90% of the value of each gold sale within 2 days of the date of sale. A final payment for 10% of the value of each gold sale, taking into account the purchaser’s pricing option, is received on the 7 th day after the date of sale. Concentrate sales which are cash settled directly with the smelter are recorded at the provisional price based on the estimated forward price to the date of final settlement. The final purchase price for these gold sales will be the average price for a period of time following the bill of lading date depending on the customer. Adjustments are made in subsequent periods to the customer receivables for these sales transactions based on movements in market prices prior to final pricing. As a result, concentrate sales receivables are fair valued and adjusted each period to reflect forward market prices to the estimated settlement date. These changes in fair value are included in revenue on the statement of earnings (loss). The Company receives payment for 90% of the value of each concentrate shipment 15 – 30 days after the loading of the material at the port of discharge. A final payment for 10% of the value of each sale is received upon completion of final assays and final pricing based on a defined pricing period. |
Share-based payments | Share-based payments Share options Options granted to employees under the Company’s equity settled share-based option plan are measured at fair value at the date of grant. Fair value is determined using the Black-Scholes option pricing model, which relies on estimates of the risk-free interest rate, expected share price volatility, future dividend payments and the expected average life of the options. The fair value determined at the grant date is recognized as an expense over the vesting period in accordance with the vesting terms and conditions (graded vesting method), with a corresponding increase in contributed surplus in equity. An individual is classified as an employee when the individual is an employee for legal or tax purposes (direct employee) or provides services similar to those performed by a direct employee. Equity-settled share-based payment transactions with non-employees are measured at the fair value of the goods or services received. However, if the fair value cannot be estimated reliably, the share-based payment transaction is measured at the fair value of the equity instruments granted at the date the non-employee receives the goods or the services. Restricted share units (“RSU’s”) RSU’s are granted to employees of the Company and are expected to be settled in cash. A liability for RSU’s is measured at fair value on the grant date and is subsequently adjusted for changes in fair value at each reporting date until settlement. The fair value of RSU’s is estimated based on the quoted market price of the Company’s common shares. The liability is recognized on a graded vesting basis over the vesting period, with a corresponding expense in the statement of earnings (loss). Performance share units (“PSU’s”) PSU’s are granted under the Company’s 2015 RSU Plan and are expected to be settled in cash. The amount of units to be issued on the vesting date will vary from 0% to 200% of the number of PSU’s granted, depending on the Company’s total shareholder return compared to the return of a selected group of peer companies. Vesting, and therefore the liability, is based on the Company’s total shareholder return and the target settlement ranges from 0% to 200% of the original grant of units. The fair value of a PSU reflects the value of a Company common share based on the quoted market price and the number of units issued is dependent upon the Company’s relative performance against a selected group of peer companies. The initial fair value of the liability is calculated as of the grant date and is recognized as share-based compensation expense over the vesting period in accordance with the vesting terms and conditions. Subsequently, at each reporting date and on settlement, the liability is re-measured with any changes in fair value recorded to the statement of earnings (loss). Deferred share units (“DSU’s”) DSU’s are granted to independent directors of the Company and are settled in cash when the individual ceases to be a director of the Company, either voluntarily or involuntarily. DSU’s vest immediately on the grant date. The fair value of a DSU reflects the value of a Company common share based on the quoted market price. The initial fair value of the liability is calculated as of the grant date and is recognized as share-based compensation expense. Subsequently, at each reporting date and on settlement, the liability is re-measured with any changes in fair value recorded to the statement of earnings (loss). |
Income and mining taxes | Income and mining taxes Income taxes include Canadian federal and provincial income taxes. Provincial mining taxes represent Canadian provincial taxes levied on mining operations. To the extent these taxes are determined based on a measure of taxable earnings, they are also accounted for as income taxes. Income tax is recognized in earnings (loss) except to the extent that it relates to items recognized directly in equity, in which case it is recognized in equity. Current tax expense is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at year end, adjusted for amendments to tax payable with regards to previous years. Deferred tax is provided for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Temporary differences are not provided for the initial recognition of assets or liabilities that affect neither accounting nor taxable earnings. The amount of deferred tax provided is based on the expected manner of realization or settlement of the carrying amount of assets and liabilities, using tax rates at the end of the reporting year applicable to the year of expected realization. A deferred tax asset is recognized only to the extent that it is probable that future taxable earnings will be available against which the asset can be utilized. |
Contingent liabilities | Contingent liabilities Contingent liabilities are possible obligations whose existence will only be confirmed by future events not wholly within the control of the Company. Contingent liabilities are disclosed unless the possibility of an outflow of economic resources is considered remote. |
Earnings (loss) per share | Earnings (loss) per share The Company presents basic earnings (loss) per share data for its common shares, calculated by dividing the earnings (loss) attributable to common shareholders of the Company by the weighted average number of common shares outstanding during the year. Diluted earnings (loss) per share is determined by adjusting the earnings (loss) attributable to common shareholders and the weighted average number of common shares outstanding for the effects of all dilutive potential common shares. |
BASIS OF PREPARATION (Tables)
BASIS OF PREPARATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
BASIS OF PREPARATION | |
Schedule of original measurement categories under IAS 39 and the new measurement categories under IFRS 9 for each class of financial assets and financial liabilities as at January 1, 2018 | 2017 2018 2017 2018 classification classification carrying amount under IAS 39 carrying amount under IFRS 9 Financial assets Cash and cash equivalents Loans and receivables Amortized cost $ 56,285 $ 56,285 Trade receivables Loans and receivables with embedded derivatives FVTPL 11,067 11,067 Other assets FVTPL FVTPL 132 132 Restricted cash Loans and receivables Amortized cost 5,036 5,036 Financial liabilities Accounts payable and accrued liabilities Other financial liabilities Other financial liabilities $ 53,436 $ 53,436 Restricted share unit liability FVTPL FVTPL 2,730 2,730 Senior secured term credit facility Other financial liabilities Other financial liabilities 365,890 365,890 Offtake obligation FVTPL FVTPL 78,085 78,085 Stream obligation FVTPL FVTPL (1) 224,020 224,020 Debt portion of convertible note Other financial liabilities Other financial liabilities 76,582 76,582 (1) The fair value changes associated with the stream obligation attributable to the changes in the credit risk is presented in OCI and the remaining amount of the change in the fair value is presented in earnings (loss). |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of basis of consolidation | Name of subsidiary Place of Proportion of Principal activity Pretium Exploration Inc. British Columbia, Canada 100% Holds interest in the Brucejack Mine and Snowfield Project 0890696 BC Ltd. British Columbia, Canada 100% Holds real estate in Stewart, British Columbia |
Schedule of estimated useful lives | Asset class Estimated useful life Mine and mill equipment 5 - 18 years Light vehicles 3 - 5 years Office and computer equipment 3 - 5 years Leasehold improvements Term of lease |
RECEIVABLES AND OTHER (Tables)
RECEIVABLES AND OTHER (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
RECEIVABLES AND OTHER | |
Schedule of receivables and other | December 31, December 31, 2018 2017 Trade receivables $ 14,487 $ 11,067 Prepayments and deposits 3,332 2,064 Tax receivables 420 6,166 Other receivables 73 5 BC Mineral Exploration Tax Credit ("BCMETC") receivable — 249 $ 18,312 $ 19,551 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
INVENTORIES | |
Schedule of inventories | December 31, December 31, 2018 2017 Finished metal $ 12,745 $ 15,309 Materials and supplies 11,548 8,201 In-circuit 458 2,163 $ 24,751 $ 25,673 |
MINERAL PROPERTIES, PLANT AND_2
MINERAL PROPERTIES, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
MINERAL PROPERTIES, PLANT AND EQUIPMENT | |
Schedule of mineral properties, plant and equipment | Mineral Construction Plant and Exploration and properties in progress equipment evaluation assets Total Year ended December 31, 2017 Cost Balance, January 1, 2017 $ 382,294 $ 633,181 $ 21,064 $ 242,788 $ 1,279,327 Additions — 324,641 297 3,928 328,866 Transfer from construction in progress to inventory — (8,192) — — (8,192) Transfer from construction in progress to plant and equipment — (523,488) 523,488 — — Transfer from construction in progress to mineral properties 420,419 (420,419) — — — Reversal (recoveries) of BCMETC 4,806 — — (253) 4,553 Balance, December 31, 2017 $ 807,519 $ 5,723 $ 544,849 $ 246,463 $ 1,604,554 Accumulated depreciation and depletion Balance, January 1, 2017 $ — $ — $ 8,870 $ — $ 8,870 Depreciation and depletion 14,924 — 15,900 — 30,824 Balance, December 31, 2017 $ 14,924 $ — $ 24,770 $ — $ 39,694 Net book value - December 31, 2017 $ 792,595 $ 5,723 $ 520,079 $ 246,463 $ 1,564,860 Year ended December 31, 2018 Cost Balance, January 1, 2018 $ 807,519 $ 5,723 $ 544,849 $ 246,463 $ 1,604,554 Additions 641 17,935 1,199 5,544 25,319 Transfer from construction in progress to plant and equipment — (10,008) 10,008 — — Transfer from construction in progress to mineral properties 4,467 (4,467) — — — Balance, December 31, 2018 $ 812,627 $ 9,183 $ 556,056 $ 252,007 $ 1,629,873 Accumulated depreciation and depletion Balance, January 1, 2018 $ 14,924 $ — $ 24,770 $ — $ 39,694 Depreciation and depletion 36,066 — 31,194 — 67,260 Balance, December 31, 2018 $ 50,990 $ — $ 55,964 $ — $ 106,954 Net book value - December 31, 2018 $ 761,637 $ 9,183 $ 500,092 $ 252,007 $ 1,522,919 |
ACCOUNTS PAYABLE AND ACCRUED _2
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | |
Schedule of accounts payable and accrued liabilities | December 31, December 31, 2018 2017 Trade payables $ 24,814 $ 35,142 Accrued liabilities 16,945 17,488 Employee benefit liability 4,398 4,783 Restricted share unit liability 1,502 2,730 Accrued interest on loan facility 1,051 — Deferred share unit liability 997 — Finance lease obligation 748 — Accrued interest on convertible notes 660 660 Royalty payable 629 146 $ 51,744 $ 60,949 Non-current portion of restricted share unit liability (554) (511) Non-current portion of finance lease obligation (518) — Current portion of accounts payable and accrued liabilities $ 50,672 $ 60,438 |
Schedule of finance lease obligation | December 31, December 31, 2018 2017 Gross finance lease obligation - minimum lease payments 1 year $ 277 $ — 2-3 years 527 — 4-5 years 35 — $ 839 $ — Future interest expense on finance lease obligation (91) — $ 748 $ — |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
LONG-TERM DEBT | |
Schedule of long-term debt | Senior Senior secured term Offtake Stream secured loan Total long- credit facility obligation obligation facility term debt Balance, January 1, 2017 $ 232,438 $ 67,702 $ 201,020 $ — $ 501,160 Additional advances under the credit facility 85,205 — — — 85,205 Interest expense including amortization of discount 48,247 — — — 48,247 Settlement of offtake obligation — (1,543) — — (1,543) Loss on financial instruments at fair value — 11,926 23,000 — 34,926 Balance, December 31, 2017 $ 365,890 $ 78,085 $ 224,020 $ — $ 667,995 Interest expense including amortization of discount 56,834 — — — 56,834 Settlement of offtake obligation — (4,423) — — (4,423) Loss (gain) on financial instruments at fair value — (3,593) 20,574 — 16,981 Change in fair value attributable to change in credit risk of financial instruments designated at FVTPL — — (7,594) — (7,594) Repayment of credit facility (422,724) — — — (422,724) Repurchase of stream obligation — — (237,000) — (237,000) Proceeds from loan facility, net of transaction costs — — — 472,051 472,051 Amortization of loan facility transaction costs — — — 95 95 Balance, December 31, 2018 $ — $ 70,069 $ — $ 472,146 $ 542,215 Current portion of long-term debt — (7,576) — (78,385) (85,961) Non-current portion of long-term debt $ — $ 62,493 $ — $ 393,761 $ 456,254 |
CONVERTIBLE NOTES (Tables)
CONVERTIBLE NOTES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
CONVERTIBLE NOTES | |
Schedule of convertible notes | For the year ended December 31, December 31, 2018 2017 Opening balance $ 76,582 $ — Face value of convertible notes — 100,000 Transaction costs associated with convertible notes — (4,205) Equity component of convertible notes, net of allocated transaction costs — (24,110) Accretion of convertible notes 5,568 4,897 Ending balance $ 82,150 $ 76,582 |
DECOMMISSIONING AND RESTORATI_2
DECOMMISSIONING AND RESTORATION PROVISION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
DECOMMISSIONING AND RESTORATION PROVISION | |
Schedule of the decommissioning and restoration provision | For the year ended December 31, December 31, 2018 2017 Opening balance $ 18,436 $ 13,675 Change in discount rate 215 (1,933) Accretion of decommissioning and restoration provision 568 465 Change in amount and timing of cash flows (272) 6,229 Ending balance $ 18,947 $ 18,436 |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
REVENUE | |
Schedule of revenue by metal | For the year ended December 31, December 31, 2018 2017 Gold revenue $ 452,253 $ 175,793 Silver revenue 5,362 1,994 Revenue from contracts with customers $ 457,615 $ 177,787 (Loss) gain on trade receivables at fair value (3,059) 146 $ 454,556 $ 177,933 |
Schedule of revenue from contracts with customers | For the year ended December 31, December 31, 2018 2017 Gold revenue - doré $ 315,068 $ 122,684 Gold revenue - concentrate 137,185 53,109 Silver revenue - concentrate 3,120 1,345 Silver revenue - doré 2,242 649 $ 457,615 $ 177,787 |
COST OF SALES (Tables)
COST OF SALES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
COST OF SALES | |
Schedule of cost of sales | For the year ended December 31, December 31, 2018 2017 Consultants and contractors $ 100,873 $ 47,907 Depreciation and depletion 67,134 28,722 Salaries and benefits 46,946 20,534 Supplies and consumables 29,146 10,547 Royalties and selling costs 19,739 7,308 Energy 13,408 5,104 Travel and camp accommodation 7,052 4,113 Freight 4,416 5,242 Camp administrative costs 3,931 1,410 Rentals 3,402 1,462 Site share-based compensation 2,160 1,198 Insurance 1,451 813 299,658 134,360 Change in inventories 4,269 (9,280) $ 303,927 $ 125,080 |
CORPORATE ADMINISTRATIVE COSTS
CORPORATE ADMINISTRATIVE COSTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
CORPORATE ADMINISTRATIVE COSTS | |
Schedule of corporate administrative costs | For the year ended December 31, December 31, 2018 2017 Salaries and benefits $ 6,026 $ 9,710 Share-based compensation 4,140 4,846 Office 1,580 1,020 Investor relations 1,318 1,064 Professional fees 1,085 801 Insurance 774 507 Listing and filing fees 390 381 Travel and accommodation 349 347 Depreciation 126 140 $ 15,788 $ 18,816 |
INTEREST AND FINANCE (INCOME) E
INTEREST AND FINANCE (INCOME) EXPENSE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
INTEREST AND FINANCE EXPENSE | |
Schedule of interest and finance expense | For the year ended December 31, December 31, 2018 2017 Interest expense on credit facility $ 56,834 $ 26,091 Interest expense on convertible notes 7,818 3,941 Interest expense on loan facility 1,178 — Accretion of decommissioning and restoration provision 568 465 Other interest expense 483 70 Bank charges 29 88 Interest expense on finance leases 16 — $ 66,926 $ 30,655 |
CAPITAL AND RESERVES (Tables)
CAPITAL AND RESERVES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
CAPITAL AND RESERVES | |
Summary of changes in stock options | 2018 2017 Weighted Weighted average average Number of exercise price Number of exercise price options (in CAD) options (in CAD) Outstanding, January 1, 6,454,327 $ 9.32 7,524,727 $ 9.05 Granted 615,592 1,067,875 12.83 Exercised (1,576,500) (1,822,025) 9.40 Expired (882,750) (290,000) 14.64 Forfeited (47,750) (26,250) 10.43 Outstanding, December 31, 4,562,919 $ 6,454,327 $ 9.32 |
Summary of information about stock options outstanding and exercisable | Share options outstanding Share options exercisable Weighted Number of Weighted Number of average options average years options exercise price Exercise prices (in CAD) outstanding to expiry exercisable (in CAD) $5.85 - $7.99 1,647,075 1,647,075 $ $8.00 - $9.99 1,615,469 1,214,877 $10.00 - $11.99 130,000 77,200 $12.00 - $13.99 1,135,375 319,530 $14.00 - $15.99 35,000 35,000 Outstanding, December 31, 2018 4,562,919 3,293,682 $ |
Summary of weighted average assumptions employed to estimate the fair value of options granted using the Black-Scholes option pricing model | For the year ended December 31, December 31, 2018 2017 Risk-free interest rate 2.23 % 1.42 % Expected volatility 58.46 % 63.63 % Expected life 5 years 5 years Expected dividend yield Nil Nil |
Summary of basic and diluted earnings (loss) per share | For the year ended December 31, December 31, 2018 2017 Net earnings (loss) for the year $ 36,620 $ (16,453) Basic weighted average number of common shares outstanding 182,905,004 181,208,295 Effective impact of dilutive securities: Share options 955,963 — Restricted share units 20,950 — Diluted weighted average number of common shares outstanding 183,881,917 181,208,295 Earnings (loss) per share Basic $ 0.20 $ (0.09) Diluted $ 0.20 $ (0.09) |
RSU's | |
CAPITAL AND RESERVES | |
Summary of changes in RSU's | 2018 2017 Weighted Weighted Number of average fair Number of average fair RSU's value (in CAD) RSU's value (in CAD) Outstanding, January 1, 729,064 $ 14.41 735,729 $ 10.65 Granted 481,230 9.78 370,472 12.96 Settled (385,063) 9.67 (355,648) 13.07 Forfeited (83,345) 11.16 (21,489) 13.85 Outstanding, December 31, 741,886 $ 11.31 729,064 $ 14.41 |
PSU's | |
CAPITAL AND RESERVES | |
Summary of changes in RSU's | 2018 2017 Weighted Weighted Number of average fair Number of average fair PSU's value (in CAD) PSU's value (in CAD) Outstanding, January 1, 74,140 $ — $ — Granted 91,945 74,140 13.08 Outstanding, December 31, 166,085 $ 74,140 $ 14.41 |
2018 DSU Plan | |
CAPITAL AND RESERVES | |
Summary of changes in RSU's | 2018 2017 Weighted Weighted Number of average fair Number of average fair DSU’s value (in CAD) DSU’s value (in CAD) Outstanding, January 1, — $ — — $ — Granted 117,587 — — Outstanding, December 31, 117,587 $ — $ — |
RELATED PARTIES (Tables)
RELATED PARTIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
RELATED PARTIES | |
Summary of directors and key management compensation | For the year ended December 31, December 31, 2018 2017 Salaries and benefits $ 5,851 $ 9,228 Share-based compensation 3,559 5,029 $ 9,410 $ 14,257 |
SUPPLEMENTAL CASH FLOW INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
SUPPLEMENTAL CASH FLOW INFORMATION | |
Schedule of supplemental cash flow information | For the year ended December 31, December 31, 2018 2017 Taxes receivable $ — $ 4,522 Accounts payable and accrued liabilities (9,168) (89,358) $ (9,168) $ (84,836) Long-term Convertible debt notes Liabilities from financing activities, January 1, 2017 $ 501,160 $ — Advance under credit facility 97,000 — Net proceeds from convertible notes — 95,795 Cash payments — (1,319) Other non-cash movements 69,835 (17,894) Liabilities from financing activities, December 31, 2017 $ 667,995 $ 76,582 Proceeds from loan facility, net of transaction costs 472,384 — Cash payments (659,724) (2,250) Other non-cash movements 61,560 7,818 Liabilities from financing activities, December 31, 2018 $ 542,215 $ 82,150 |
FINANCIAL RISK MANAGEMENT (Tabl
FINANCIAL RISK MANAGEMENT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
FINANCIAL RISK MANAGEMENT | |
Schedule of impact on pre-tax profit of a 10% change in the USD/CAD exchange rate on US dollar denominated financial assets and liabilities | Impact of currency rate change on pre-tax earnings 10% increase 10% decrease Cash and cash equivalents $ 1,085 $ (1,085) Receivables and other, excluding trade receivables 90 (90) Restricted cash 203 (203) Accounts payable and accrued liabilities (4,905) 4,905 |
Schedule of impact on pre-tax profit of a 1% change in interest rates on financial assets and liabilities | Impact of interest rate change on pre-tax earnings 1% increase 1% decrease Cash and cash equivalents $ 1,087 $ (1,087) Senior secured loan facility (173) 173 Offtake obligation 2,049 (1,947) |
Schedule of impact on pre-tax profit from changes in the fair values of financial instruments with a 10% change in gold and silver commodity prices | Impact of price change on pre-tax earnings 10% increase 10% decrease Trade receivables $ 8,844 $ (8,844) Offtake obligation (2,588) 3,799 |
Schedule of carrying amount of financial assets represents the maximum credit exposure | December 31, December 31, 2018 2017 Cash and cash equivalents $ 45,407 $ 56,285 Trade receivables 14,487 11,067 Tax receivables 420 6,166 Restricted cash 2,029 5,036 $ 62,343 $ 78,554 |
Schedule of maturity analysis of financial liabilities | The maturity analysis of financial liabilities as at December 31, 2018 is as follows: More than 1 year 2-3 years 4-5 years 5 years Total Principal repayments on loan facility $ 80,000 $ 133,333 $ 266,667 $ — $ 480,000 Convertible notes — — 100,000 — 100,000 Interest payments on loan facility (1) 25,186 35,890 12,041 — 73,117 Accounts payable and accrued liabilities 43,385 — — — 43,385 Interest on convertible notes 2,250 4,500 1,116 — 7,866 Restricted share unit liability — — 1,502 Finance lease obligation 35 — 839 $ 152,046 $ 174,804 $ 379,859 $ — $ 706,709 (1) Interest payments on the loan facility represent management’s best estimate based on current LIBOR and the Company’s projected applicable margin in accordance with the terms of the loan facility. |
Schedule of financial assets and liabilities by level within the fair value hierarchy | Carrying value Fair value Amortized Other financial As at December 31, 2018 FVTPL cost liabilities Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ — $ 45,407 $ — $ — $ — $ — Trade receivables 14,487 — — — 14,487 — Restricted cash — 2,029 — — — — $ 14,487 $ 47,436 $ — $ — $ 14,487 $ — Financial liabilities Accounts payable and accrued liabilities $ — $ — $ 43,048 $ — $ — $ — Restricted share unit liability 1,502 — — — 1,502 — Deferred share unit liability 997 — — — 997 — Senior secured loan facility — — 472,146 — — — Offtake obligation 70,069 — — — — 70,069 Debt portion of convertible note — — 82,150 — 82,150 — $ 72,568 $ — $ 597,344 $ — $ 84,649 $ 70,069 Carrying value Fair value Loans and Other financial As at December 31, 2017 FVTPL receivables liabilities Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ — $ 56,285 $ — $ — $ — $ — Trade receivables — 11,067 — — 11,067 — Other assets 132 — — — — 132 Restricted cash — 5,036 — — — — $ 132 $ 72,388 $ — $ — $ 11,067 $ 132 Financial liabilities Accounts payable and accrued liabilities $ — $ — $ 53,436 $ — $ — $ — Restricted share unit liability 2,730 — — — 2,730 — Senior secured term credit facility — — 365,890 — — — Offtake obligation 78,085 — — — — 78,085 Stream obligation (1) 224,020 — — — — 224,020 Debt portion of convertible note — — 76,582 — 76,582 — $ 304,835 $ — $ 495,908 $ — $ 79,312 $ 302,105 (1) The stream obligation was recorded at fair value at each statement of financial position date as the Company determined that the stream obligation was in substance a debt instrument with embedded derivatives linked to gold and silver commodity prices and interest rates. The Company elected to measure the stream obligation in its entirety at FVTPL. |
TAXATION (Tables)
TAXATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
TAXATION | |
Schedule of deferred income tax assets (liabilities) | December 31, December 31, 2018 2017 Tax loss carry forwards $ 74,400 $ 53,266 Long term debt 10,798 22,525 Investment tax credits 6,545 6,545 Financing costs 4,310 4,288 Other 2,080 756 Decommissioning and restoration provision — 4,978 Inventories (847) (964) Provincial mining tax attributes (6,088) — Mineral interests (106,434) (91,394) $ (15,236) $ — |
Schedule of deductible temporary differences for which no deferred tax assets are recognized | December 31, December 31, 2018 2017 Provincial mining tax attributes $ 18,947 $ 16,408 Decommissioning and restoration provision 18,947 — Other 68 68 Tax loss carry forwards — 59,472 $ 37,962 $ 75,948 |
Schedule of income tax (recovery) expense | For the year ended December 31, December 31, 2018 2017 Current tax expense $ 4,196 $ 1,621 Deferred income tax expense (recovery) 12,668 (7,022) $ 16,864 $ (5,401) |
Schedule of reconciliation of provision for income taxes to the amount calculated using statutory income tax rates | For the year ended December 31, December 31, 2018 2017 Expected tax (recovery) expense $ 14,441 $ (5,680) Change in income tax rates — (574) Provincial mining taxes 800 1,621 Change in unrecognized temporary differences (10,942) 7,679 Share-based compensation and other items 943 988 Flow-through shares 823 842 Flow-through share premium (526) (574) Impact of foreign exchange on CAD denominated tax attributes 11,735 (12,550) Non-temporary differences (410) 2,847 $ 16,864 $ (5,401) |
COMMITMENTS (Tables)
COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
COMMITMENTS | |
Schedule of gross contractual obligations | The following table provides the Company’s gross contractual obligations as of December 31, 2018: More than 1 year 2-3 years 4-5 years 5 years Total Principal repayments on loan facility $ 80,000 133,333 $ 266,667 $ — $ 480,000 Repayment of convertible notes 2,250 4,500 101,116 — 107,866 Interest payments on loan facility (1) 25,186 35,890 12,041 — 73,117 Decommissioning and restoration provision 422 51 — 18,474 18,947 Operating leases 4,571 7,649 1,462 122 13,804 Purchase commitments 5,568 — — — 5,568 Finance lease obligation 277 527 35 — 839 $ 118,274 $ 181,950 $ 381,321 $ 18,596 $ 700,141 (1) Interest payments on the loan facility represent management’s best estimate based on current LIBOR and the Company’s projected applicable margin in accordance with the terms of the loan facility. |
BASIS OF PREPARATION - Transiti
BASIS OF PREPARATION - Transition to IFRS 9 (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Class of financial assets and financial liabilities | ||||
Equity | $ 903,126 | $ 847,061 | $ 824,537 | |
Accumulated other comprehensive loss | ||||
Class of financial assets and financial liabilities | ||||
Equity | (193,997) | (193,772) | (193,772) | |
Accumulated other comprehensive loss | Stream obligation | ||||
Class of financial assets and financial liabilities | ||||
Equity | 307 | |||
Equity, net of deferred tax | (225) | |||
Accumulated other comprehensive loss | Restatement Adjustment | ||||
Class of financial assets and financial liabilities | ||||
Adjustment on adoption of IFRS 9, net of tax | $ (5,768) | (5,768) | ||
Equity | (199,540) | |||
Deficit | ||||
Class of financial assets and financial liabilities | ||||
Equity | $ (110,256) | (152,644) | $ (136,191) | |
Deficit | Restatement Adjustment | ||||
Class of financial assets and financial liabilities | ||||
Adjustment on adoption of IFRS | 7,901 | |||
Adjustment on adoption of IFRS 9, net of tax | 5,768 | |||
Equity | $ (146,876) |
BASIS OF PREPARATION - Measurem
BASIS OF PREPARATION - Measurement Categories (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
IAS 39 | Accounts payable and accrued liabilities | ||
Class of financial assets and financial liabilities | ||
Financial liabilities | $ 53,436 | |
IAS 39 | Restricted share unit liability | ||
Class of financial assets and financial liabilities | ||
Financial liabilities | 2,730 | |
IAS 39 | Senior secured term credit facility | ||
Class of financial assets and financial liabilities | ||
Financial liabilities | 365,890 | |
IAS 39 | Offtake obligation | ||
Class of financial assets and financial liabilities | ||
Financial liabilities | 78,085 | |
IAS 39 | Stream obligation | ||
Class of financial assets and financial liabilities | ||
Financial liabilities | 224,020 | |
IAS 39 | Debt portion of convertible note | ||
Class of financial assets and financial liabilities | ||
Financial liabilities | 76,582 | |
IAS 39 | Cash and cash equivalents | ||
Class of financial assets and financial liabilities | ||
Financial assets | 56,285 | |
IAS 39 | Trade receivables | ||
Class of financial assets and financial liabilities | ||
Financial assets | 11,067 | |
IAS 39 | Other assets | ||
Class of financial assets and financial liabilities | ||
Financial assets | 132 | |
IAS 39 | Restricted cash | ||
Class of financial assets and financial liabilities | ||
Financial assets | $ 5,036 | |
IFRS 9 | Accounts payable and accrued liabilities | ||
Class of financial assets and financial liabilities | ||
Financial liabilities | $ 53,436 | |
IFRS 9 | Restricted share unit liability | ||
Class of financial assets and financial liabilities | ||
Financial liabilities | 2,730 | |
IFRS 9 | Senior secured term credit facility | ||
Class of financial assets and financial liabilities | ||
Financial liabilities | 365,890 | |
IFRS 9 | Offtake obligation | ||
Class of financial assets and financial liabilities | ||
Financial liabilities | 78,085 | |
IFRS 9 | Stream obligation | ||
Class of financial assets and financial liabilities | ||
Financial liabilities | 224,020 | |
IFRS 9 | Debt portion of convertible note | ||
Class of financial assets and financial liabilities | ||
Financial liabilities | 76,582 | |
IFRS 9 | Cash and cash equivalents | ||
Class of financial assets and financial liabilities | ||
Financial assets | 56,285 | |
IFRS 9 | Trade receivables | ||
Class of financial assets and financial liabilities | ||
Financial assets | 11,067 | |
IFRS 9 | Other assets | ||
Class of financial assets and financial liabilities | ||
Financial assets | 132 | |
IFRS 9 | Restricted cash | ||
Class of financial assets and financial liabilities | ||
Financial assets | $ 5,036 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES - Basis of consolidation (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Pretium Exploration Inc. | |
Basis of consolidation | |
Ownership interest (in percent) | 100.00% |
0890696 BC Ltd. | |
Basis of consolidation | |
Ownership interest (in percent) | 100.00% |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES - Plant and equipment (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Mine and mill equipment | Minimum | |
Plant and equipment | |
Estimated useful life (in years) | 5 years |
Mine and mill equipment | Maximum | |
Plant and equipment | |
Estimated useful life (in years) | 18 years |
Light vehicles | Minimum | |
Plant and equipment | |
Estimated useful life (in years) | 3 years |
Light vehicles | Maximum | |
Plant and equipment | |
Estimated useful life (in years) | 5 years |
Office and computer equipment | Minimum | |
Plant and equipment | |
Estimated useful life (in years) | 3 years |
Office and computer equipment | Maximum | |
Plant and equipment | |
Estimated useful life (in years) | 5 years |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES - Revenue recognition (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Refined Gold | |
Revenue recognition | |
Percentage of receipt on sale | 90.00% |
Payment terms (in days) | 2 days |
Percentage of mineral value final payment | 10.00% |
Terms for final payment (in days) | 7 days |
Dore | Refined Gold | |
Revenue recognition | |
Mineral available within arrival of refinery, final processing outturn or after bill of lading (in percent) | 90.00% |
Process time to refine mineral (in days) | 10 days |
Dore | Refined Silver | |
Revenue recognition | |
Mineral available within arrival of refinery, final processing outturn or after bill of lading (in percent) | 100.00% |
Concentrate | |
Revenue recognition | |
Percentage of receipt on sale | 90.00% |
Payment terms (in days) | 15 days |
Percentage of mineral value final payment | 10.00% |
Concentrate | Refined Gold | |
Revenue recognition | |
Mineral available within arrival of refinery, final processing outturn or after bill of lading (in percent) | 90.00% |
Concentrate | Refined Gold | Minimum | |
Revenue recognition | |
Process time to refine mineral (in days) | 15 days |
Concentrate | Refined Gold | Maximum | |
Revenue recognition | |
Process time to refine mineral (in days) | 30 days |
Offtake obligation | Refined Gold | |
Revenue recognition | |
Amount of mineral required to sell (as a percent) | 100.00% |
Mineral (in ounces) | 7,067,000 |
SIGNIFICANT ACCOUNTING POLICI_7
SIGNIFICANT ACCOUNTING POLICIES - Share-based payments (Details) - PSU's | 12 Months Ended |
Dec. 31, 2018 | |
Minimum | |
Share-based payments | |
Units issued as percent to number granted | 0.00% |
Maximum | |
Share-based payments | |
Units issued as percent to number granted | 200.00% |
RECEIVABLES AND OTHER (Details)
RECEIVABLES AND OTHER (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
RECEIVABLES AND OTHER | ||
Trade receivables | $ 14,487 | $ 11,067 |
Prepayments and deposits | 3,332 | 2,064 |
Tax receivables | 420 | 6,166 |
Other receivables | 73 | 5 |
BC Mineral Exploration Tax Credit ("BCMETC") receivable | 249 | |
Total receivables and other | $ 18,312 | $ 19,551 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
INVENTORIES | ||
Finished metal | $ 12,745 | $ 15,309 |
Materials and supplies | 11,548 | 8,201 |
In-circuit | 458 | 2,163 |
Inventories | 24,751 | 25,673 |
Depreciation and depletion | 3,138 | 3,344 |
Site share-based compensation | $ 199 | $ 371 |
MINERAL PROPERTIES, PLANT AND_3
MINERAL PROPERTIES, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
MINERAL PROPERTIES, PLANT AND EQUIPMENT | ||
Balance, beginning of year | $ 1,564,860 | |
Balance, end of year | 1,522,919 | $ 1,564,860 |
Cost | ||
MINERAL PROPERTIES, PLANT AND EQUIPMENT | ||
Balance, beginning of year | 1,604,554 | 1,279,327 |
Additions | 25,319 | 328,866 |
Transfer from construction in progress to inventory | (8,192) | |
Reversal (Recoveries) of BCMETC | 4,553 | |
Balance, end of year | 1,629,873 | 1,604,554 |
Accumulated depreciation and depletion | ||
MINERAL PROPERTIES, PLANT AND EQUIPMENT | ||
Balance, beginning of year | (39,694) | (8,870) |
Depreciation and depletion | 67,260 | 30,824 |
Balance, end of year | (106,954) | (39,694) |
Mineral properties | ||
MINERAL PROPERTIES, PLANT AND EQUIPMENT | ||
Balance, beginning of year | 792,595 | |
Balance, end of year | 761,637 | 792,595 |
Mineral properties | Cost | ||
MINERAL PROPERTIES, PLANT AND EQUIPMENT | ||
Balance, beginning of year | 807,519 | 382,294 |
Additions | 641 | |
Transfer from construction in progress to mineral properties | 4,467 | 420,419 |
Reversal (Recoveries) of BCMETC | 4,806 | |
Balance, end of year | 812,627 | 807,519 |
Mineral properties | Accumulated depreciation and depletion | ||
MINERAL PROPERTIES, PLANT AND EQUIPMENT | ||
Balance, beginning of year | (14,924) | |
Depreciation and depletion | 36,066 | 14,924 |
Balance, end of year | (50,990) | (14,924) |
Construction in progress | ||
MINERAL PROPERTIES, PLANT AND EQUIPMENT | ||
Balance, beginning of year | 5,723 | |
Balance, end of year | 9,183 | 5,723 |
Construction in progress | Cost | ||
MINERAL PROPERTIES, PLANT AND EQUIPMENT | ||
Balance, beginning of year | 5,723 | 633,181 |
Additions | 17,935 | 324,641 |
Transfer from construction in progress to inventory | (8,192) | |
Transfer from construction in progress to plant and equipment | (10,008) | (523,488) |
Transfer from construction in progress to mineral properties | (4,467) | (420,419) |
Balance, end of year | 9,183 | 5,723 |
Plant and equipment | ||
MINERAL PROPERTIES, PLANT AND EQUIPMENT | ||
Balance, beginning of year | 520,079 | |
Balance, end of year | 500,092 | 520,079 |
Plant and equipment | Cost | ||
MINERAL PROPERTIES, PLANT AND EQUIPMENT | ||
Balance, beginning of year | 544,849 | 21,064 |
Additions | 1,199 | 297 |
Transfer from construction in progress to plant and equipment | 10,008 | 523,488 |
Balance, end of year | 556,056 | 544,849 |
Plant and equipment | Accumulated depreciation and depletion | ||
MINERAL PROPERTIES, PLANT AND EQUIPMENT | ||
Balance, beginning of year | (24,770) | (8,870) |
Depreciation and depletion | 31,194 | 15,900 |
Balance, end of year | (55,964) | (24,770) |
Exploration and evaluation assets | ||
MINERAL PROPERTIES, PLANT AND EQUIPMENT | ||
Balance, beginning of year | 246,463 | |
Balance, end of year | 252,007 | 246,463 |
Exploration and evaluation assets | Cost | ||
MINERAL PROPERTIES, PLANT AND EQUIPMENT | ||
Balance, beginning of year | 246,463 | 242,788 |
Additions | 5,544 | 3,928 |
Reversal (Recoveries) of BCMETC | (253) | |
Balance, end of year | $ 252,007 | $ 246,463 |
MINERAL PROPERTIES, PLANT AND_4
MINERAL PROPERTIES, PLANT AND EQUIPMENT - Additional information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Plant and equipment | ||
MINERAL PROPERTIES, PLANT AND EQUIPMENT | ||
Depreciation and depletion | $ 67,260 | $ 28,862 |
Construction in progress | ||
MINERAL PROPERTIES, PLANT AND EQUIPMENT | ||
Capitalized value of an asset | $ 0 | $ 1,962 |
ACCOUNTS PAYABLE AND ACCRUED _3
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | ||
Trade payables | $ 24,814 | $ 35,142 |
Accrued liabilities | 16,945 | 17,488 |
Employee benefit liability | 4,398 | 4,783 |
Restricted share unit liability | 1,502 | 2,730 |
Accrued interest on loan facility | 1,051 | |
Deferred share unit liability | 997 | |
Gross finance lease obligations | 748 | |
Accrued interest | 660 | 660 |
Royalty payable | 629 | 146 |
Accounts payable and accrued liabilities | 51,744 | 60,949 |
Non-current portion of restricted share unit liability | (554) | (511) |
Non-current portion of finance lease obligation | (518) | |
Current portion of accounts payable and accrued liabilities | $ 50,672 | $ 60,438 |
ACCOUNTS PAYABLE AND ACCRUED _4
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES - Finance lease obligation (Details) $ in Thousands | Dec. 31, 2018USD ($) |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | |
Gross finance lease obligation - minimum lease payments | $ 839 |
Future interest expense on finance lease obligation | (91) |
Finance lease obligation | 748 |
1 year | |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | |
Gross finance lease obligation - minimum lease payments | 277 |
2-3 years | |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | |
Gross finance lease obligation - minimum lease payments | 527 |
4-5 years | |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | |
Gross finance lease obligation - minimum lease payments | $ 35 |
LONG-TERM DEBT - Roll forward (
LONG-TERM DEBT - Roll forward (Details) - USD ($) $ in Thousands | Dec. 18, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Long-Term Debt | |||
Long-term debt Beginning period | $ 667,995 | $ 501,160 | |
Additional advances under the credit facility | 85,205 | ||
Interest expense including amortization of discount | 56,834 | 48,247 | |
Settlement of offtake obligation | (4,423) | (1,543) | |
Loss (gain) on financial instruments at fair value | 16,981 | 34,926 | |
Change in fair value attributable to change in credit risk of financial instruments designated at FVTPL | (7,594) | ||
Repayment of credit facility | (422,724) | ||
Repurchase of stream obligation | (237,000) | ||
Proceeds from loan facility, net of transaction costs | 472,051 | ||
Amortization of loan facility transaction costs | 95 | ||
Long-term debt ending period | 542,215 | 667,995 | |
Current portion of long-term debt | (85,961) | (374,966) | |
Non-current portion of long term debt | 456,254 | 293,029 | |
Senior secured term credit facility | |||
Long-Term Debt | |||
Long-term debt Beginning period | 365,890 | 232,438 | |
Additional advances under the credit facility | 85,205 | ||
Interest expense including amortization of discount | 56,834 | 48,247 | |
Repayment of credit facility | $ (422,724) | ||
Long-term debt ending period | 365,890 | ||
Non-current portion of long term debt | |||
Offtake obligation | |||
Long-Term Debt | |||
Long-term debt Beginning period | 78,085 | 67,702 | |
Settlement of offtake obligation | (4,423) | (1,543) | |
Loss (gain) on financial instruments at fair value | (3,593) | 11,926 | |
Long-term debt ending period | 70,069 | 78,085 | |
Current portion of long-term debt | (7,576) | ||
Non-current portion of long term debt | 62,493 | ||
Stream obligation | |||
Long-Term Debt | |||
Long-term debt Beginning period | 224,020 | 201,020 | |
Loss (gain) on financial instruments at fair value | 20,574 | 23,000 | |
Change in fair value attributable to change in credit risk of financial instruments designated at FVTPL | (7,594) | ||
Repurchase of stream obligation | $ (237,000) | ||
Long-term debt ending period | $ 224,020 | ||
Non-current portion of long term debt | |||
Senior secured loan facility | |||
Long-Term Debt | |||
Proceeds from loan facility, net of transaction costs | 472,051 | ||
Amortization of loan facility transaction costs | 95 | ||
Long-term debt ending period | 472,146 | ||
Current portion of long-term debt | (78,385) | ||
Non-current portion of long term debt | $ 393,761 |
LONG-TERM DEBT - Senior secured
LONG-TERM DEBT - Senior secured loan facility (Details) - USD ($) $ in Thousands | Jun. 18, 2019 | Dec. 18, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Feb. 14, 2017 |
Interest and Finance Expense | |||||
Notional amount | $ 100,000 | ||||
Finance and interest costs | $ 66,926 | $ 30,655 | |||
Amortization of loan facility transaction costs | 95 | ||||
Senior secured loan facility | |||||
Interest and Finance Expense | |||||
Notional amount | $ 480,000 | ||||
Term (in years) | 4 years | ||||
Finance and interest costs | 1,083 | $ 0 | |||
Transaction costs | $ 7,949 | ||||
Underwriting fee (as a percent) | 1.55% | ||||
Amortization of loan facility transaction costs | $ 95 | ||||
Effective interest rate (as a percent) | 5.90% | ||||
Senior secured loan facility | Minimum | USD Base rate | |||||
Interest and Finance Expense | |||||
Interest rate basis (as a percent) | 1.50% | ||||
Senior secured loan facility | Maximum | USD Base rate | |||||
Interest and Finance Expense | |||||
Interest rate basis (as a percent) | 2.50% | ||||
Senior secured loan facility | LIBOR | |||||
Interest and Finance Expense | |||||
Interest rate (as a percent) | 2.50% | ||||
Senior secured loan facility | LIBOR | Minimum | USD LIBOR | |||||
Interest and Finance Expense | |||||
Interest rate basis (as a percent) | 2.50% | ||||
Senior secured loan facility | LIBOR | Maximum | USD LIBOR | |||||
Interest and Finance Expense | |||||
Interest rate basis (as a percent) | 3.50% | ||||
Term facility | |||||
Interest and Finance Expense | |||||
Notional amount | $ 250,000 | ||||
Quarterly payment | $ 16,667 | ||||
Revolving facility | |||||
Interest and Finance Expense | |||||
Notional amount | $ 230,000 | ||||
Principal repayment | $ 30,000 | ||||
Maximum borrowing capacity | $ 200,000 | ||||
Revolving facility | Minimum | |||||
Interest and Finance Expense | |||||
Stand by fee (as a percent) | 0.60% | ||||
Revolving facility | Maximum | |||||
Interest and Finance Expense | |||||
Stand by fee (as a percent) | 0.80% |
LONG-TERM DEBT - Senior secur_2
LONG-TERM DEBT - Senior secured term credit facility (Details) - USD ($) $ in Thousands | Dec. 18, 2018 | Sep. 21, 2015 | Dec. 31, 2018 | Dec. 31, 2017 | Feb. 14, 2017 |
Long-Term Debt | |||||
Notional amount | $ 100,000 | ||||
Callable gold and silver agreement | $ 150,000 | ||||
Share value private placement | 40,000 | ||||
Other assets | $ 132 | ||||
Repayment of credit facility | $ 422,724 | ||||
Senior secured term credit facility | |||||
Long-Term Debt | |||||
Notional amount | 350,000 | ||||
Maximum borrowing capacity | $ 350,000 | ||||
Interest rate (as a percent) | 7.50% | ||||
Extension period (in years) | 1 year | ||||
Extension fee (as a percent of principal) | 2.50% | ||||
Gain (loss) fair value of embedded derivatives | $ (132) | (1,624) | |||
Effective interest rate (as a percent) | 15.00% | ||||
Interest expense | $ 56,834 | 26,091 | |||
Capitalized interest | $ 0 | $ 22,156 | |||
Repayment of credit facility | $ 422,724 |
LONG-TERM DEBT - Offtake obliga
LONG-TERM DEBT - Offtake obligation (Details) | 12 Months Ended | |
Dec. 31, 2018USD ($)oz | Dec. 31, 2017USD ($)oz | |
Long-Term Debt | ||
Decrease in obligation | $ 4,423,000 | $ 1,543,000 |
Loss (gain) on financial instruments at fair value | $ (16,981,000) | $ (34,926,000) |
Offtake obligation | ||
Long-Term Debt | ||
Delivery of gold (in ounces) | oz | 371,223 | 121,671 |
Decrease in obligation | $ 4,423,000 | $ 1,543,000 |
Loss (gain) on financial instruments at fair value | $ 3,593,000 | $ (11,926,000) |
Offtake obligation | Refined Gold | ||
Long-Term Debt | ||
Mineral obligation (in percent) | 100.00% | |
Mineral (in ounces) | 7,067,000 | |
Offtake obligation | Option to reduce obligation | Refined Gold | Effective date December 31, 2019 | ||
Long-Term Debt | ||
Potential reduction in obligation (in percent) | 75.00% | |
Price per remaining ounce | $ 13 | |
Offtake obligation | Dore | ||
Long-Term Debt | ||
Delivery of gold (in ounces) | oz | 249,799 | 94,169 |
Offtake obligation | Concentrate | ||
Long-Term Debt | ||
Purchase of gold (in ounces) | oz | 121,424 | 27,502 |
LONG-TERM DEBT - Stream obligat
LONG-TERM DEBT - Stream obligation (Details) $ in Thousands | Sep. 21, 2015USD ($)$ / oz | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 18, 2018USD ($) |
Long-Term Debt | ||||
Repurchase of stream obligation | $ (237,000) | |||
Loss (gain) on financial instruments at fair value | 16,981 | $ 34,926 | ||
Fair value gain due to the change in the Company's credit risk, net of tax recognized in OCI | 5,543 | |||
Stream obligation | ||||
Long-Term Debt | ||||
Obligated payment | $ 20,000 | |||
Term (in years) | 40 years | |||
Repurchase of stream obligation | $ (237,000) | |||
Change in fair value | (12,980) | (23,000) | ||
Loss (gain) on financial instruments at fair value | 20,574 | 23,000 | ||
Interest costs capitalised | 0 | $ 10,120 | ||
Fair value gain due to the change in the Company's credit risk | $ 7,594 | |||
Effective interest rate (as a percent) | 9.50% | |||
Stream obligation | Refined Gold | ||||
Long-Term Debt | ||||
Mineral obligation (in percent) | 8.00% | |||
Mineral (in ounces) | 7,067,000 | |||
Price (per ounce) | $ / oz | 400 | |||
Stream obligation | Refined Silver | ||||
Long-Term Debt | ||||
Mineral obligation (in percent) | 8.00% | |||
Mineral (in ounces) | 26,297,000 | |||
Price (per ounce) | $ / oz | 4 |
CONVERTIBLE NOTES - General (De
CONVERTIBLE NOTES - General (Details) $ / shares in Units, $ in Thousands | Feb. 14, 2017USD ($)$ / shares | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Interest and Finance Expense | ||||
Aggregate principal amount | $ 100,000 | |||
Long-term debt | $ 542,215 | $ 667,995 | $ 501,160 | |
Equity component of notes | 24,110 | |||
Equity component net of tax | 17,603 | 17,603 | ||
Accretion of convertible notes | $ 5,568 | 4,897 | ||
Convertible notes | ||||
Interest and Finance Expense | ||||
Aggregate principal amount | $ 100,000 | |||
Interest rate (as a percent) | 2.25% | |||
Initial conversion ratio | 0.625 | |||
Initial conversion price (per share) | $ / shares | $ 16 | |||
Threshold trading days | 20 days | |||
Threshold consecutive trading days | 30 days | |||
Threshold percentage | 130.00% | |||
Redemption price (percentage) | 100.00% | |||
Purchase Price (percentage) | 100.00% | |||
Equity component net of tax | $ 17,603 | |||
Effective interest rate (as a percent) | 7.80% | |||
Accretion of convertible notes | $ 5,568 | |||
Accretion of convertible notes, net | 2,807 | |||
Capitalized interest | $ 0 | 2,090 | ||
Fair value | Convertible notes | ||||
Interest and Finance Expense | ||||
Long-term debt | $ 71,685 | |||
Discount cash flow term | 5 years | |||
Discount rate (percentage) | 8.60% |
CONVERTIBLE NOTES - Movement in
CONVERTIBLE NOTES - Movement in debt (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Feb. 14, 2017 | |
CONVERTIBLE NOTES | |||
Opening balance | $ 76,582 | ||
Face value of convertible notes | $ 100,000 | ||
Transaction costs associated with convertible notes | $ (4,205) | ||
Equity component of convertible notes, net of allocated transaction costs | (24,110) | ||
Accretion of convertible notes | 5,568 | 4,897 | |
Ending balance | $ 82,150 | $ 76,582 |
DECOMMISSIONING AND RESTORATI_3
DECOMMISSIONING AND RESTORATION PROVISION - Reclamation bonds (Details) $ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018CAD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Reclamation bonds | |||
Restricted cash | $ 2,029 | $ 5,036 | |
Guaranteed Investment Certificates and Letters of Credit | |||
Reclamation bonds | |||
Restricted cash | $ 1,749 | $ 4,731 | |
Surety bond | |||
Reclamation bonds | |||
Increase in provision | $ 8,500 | ||
Total provision | $ 22,700 |
DECOMMISSIONING AND RESTORATI_4
DECOMMISSIONING AND RESTORATION PROVISION - Decommissioning and restoration provision (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
DECOMMISSIONING AND RESTORATION PROVISION | ||
Opening balance | $ 18,436 | $ 13,675 |
Change in discount rate | 215 | (1,933) |
Accretion of decommissioning and restoration provision | 568 | 465 |
Change in amount and timing of cash flows | (272) | 6,229 |
Ending balance | $ 18,947 | $ 18,436 |
DECOMMISSIONING AND RESTORATI_5
DECOMMISSIONING AND RESTORATION PROVISION - Additional information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
DECOMMISSIONING AND RESTORATION PROVISION | ||
Inflation rate (as a percent) | 1.90% | 1.90% |
Discount rate (as a percent) | 2.40% | 2.50% |
Liability for retirement and remediation | $ 20,369 | $ 21,989 |
REVENUE - Metal (Details)
REVENUE - Metal (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
REVENUE | ||
Gold revenue | $ 452,253 | $ 175,793 |
Silver revenue | 5,362 | 1,994 |
Revenue from contracts with customers | 457,615 | 177,787 |
(Loss) gain on trade receivables at fair value | (3,059) | 146 |
Total revenue | $ 454,556 | $ 177,933 |
REVENUE - Product (Details)
REVENUE - Product (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue | ||
Gold revenue | $ 452,253 | $ 175,793 |
Silver revenue | 5,362 | 1,994 |
Revenue from contracts with customers | 457,615 | 177,787 |
Dore | ||
Revenue | ||
Gold revenue | 315,068 | 122,684 |
Silver revenue | 2,242 | 649 |
Concentrate | ||
Revenue | ||
Gold revenue | 137,185 | 53,109 |
Silver revenue | $ 3,120 | $ 1,345 |
COST OF SALES (Details)
COST OF SALES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
COST OF SALES | ||
Consultants and contractors | $ 100,873 | $ 47,907 |
Depreciation and depletion | 67,134 | 28,722 |
Salaries and benefits | 46,946 | 20,534 |
Supplies and consumables | 29,146 | 10,547 |
Royalties and selling costs | 19,739 | 7,308 |
Energy | 13,408 | 5,104 |
Travel and camp accommodation | 7,052 | 4,113 |
Freight | 4,416 | 5,242 |
Camp administrative costs | 3,931 | 1,410 |
Rentals | 3,402 | 1,462 |
Site share-based compensation | 2,160 | 1,198 |
Insurance | 1,451 | 813 |
Cost of sales | 299,658 | 134,360 |
Change in inventories | 4,269 | (9,280) |
Total cost of sales | $ 303,927 | $ 125,080 |
CORPORATE ADMINISTRATIVE COST_2
CORPORATE ADMINISTRATIVE COSTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
CORPORATE ADMINISTRATIVE COSTS | ||
Salaries and benefits | $ 6,026 | $ 9,710 |
Share-based compensation | 4,140 | 4,846 |
Office | 1,580 | 1,020 |
Investor relations | 1,318 | 1,064 |
Professional fees | 1,085 | 801 |
Insurance | 774 | 507 |
Listing and filing fees | 390 | 381 |
Travel and accommodation | 349 | 347 |
Depreciation | 126 | 140 |
Corporate administrative costs | $ 15,788 | $ 18,816 |
INTEREST AND FINANCE EXPENSE (D
INTEREST AND FINANCE EXPENSE (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Interest and Finance Expense | ||
Accretion of decommissioning and restoration provision | $ 568 | $ 465 |
Other interest expense | 483 | 70 |
Bank charges | 29 | 88 |
Interest expense on finance leases | 16 | |
Interest and finance income expense | 66,926 | 30,655 |
Senior secured term credit facility | ||
Interest and Finance Expense | ||
Interest expense | 56,834 | 26,091 |
Convertible notes | ||
Interest and Finance Expense | ||
Interest expense | 7,818 | 3,941 |
Senior secured loan facility | ||
Interest and Finance Expense | ||
Interest expense | 1,178 | |
Interest and finance income expense | $ 1,083 | $ 0 |
CAPITAL AND RESERVES - Share ca
CAPITAL AND RESERVES - Share capital (Details) $ / shares in Units, $ in Thousands | Jul. 25, 2018USD ($) | Jul. 14, 2017USD ($)tranche | Dec. 31, 2018USD ($)$ / shares | Dec. 31, 2017USD ($) | Jul. 25, 2018$ / sharesshares | Jul. 14, 2017$ / sharesshares |
CAPITAL AND RESERVES | ||||||
Common shares issued | $ 2,304 | $ 3,891 | ||||
Share issue cost | $ 31 | $ 225 | ||||
Flow-through common shares | ||||||
CAPITAL AND RESERVES | ||||||
Number of shares (In shares) | shares | 227,273 | 329,000 | ||||
Price of share (per share) | $ / shares | $ 13.20 | $ 15.20 | ||||
Common shares issued | $ 2,304 | $ 3,891 | ||||
Share issue cost | 31 | $ 30 | ||||
Number of offerings | tranche | 2 | |||||
Flow-through common shares | Share capital | ||||||
CAPITAL AND RESERVES | ||||||
Common shares issued | 1,913 | $ 3,182 | ||||
Flow-through common shares | Contributed surplus | ||||||
CAPITAL AND RESERVES | ||||||
Common shares issued | $ 391 | $ 709 | ||||
Preferred shares | ||||||
CAPITAL AND RESERVES | ||||||
Shares par value | $ / shares | $ 0 |
CAPITAL AND RESERVES - Stock op
CAPITAL AND RESERVES - Stock options (Details) | 12 Months Ended | |
Dec. 31, 2018CAD ($)Options | Dec. 31, 2017CAD ($)Options | |
Stock options | ||
Threshold of reserved common shares to outstanding common shares (in percent) | 10.00% | |
Term (in years) | 5 years | |
Outstanding, beginning of period | Options | 6,454,327 | 7,524,727 |
Granted (in options) | Options | 615,592 | 1,067,875 |
Exercised (in options) | Options | (1,576,500) | (1,822,025) |
Expired (in options) | Options | (882,750) | (290,000) |
Forfeited (in options) | Options | (47,750) | (26,250) |
Outstanding, end of period | Options | 4,562,919 | 6,454,327 |
Weighted average exercise price | ||
Outstanding beginning of period (per option) | $ 9.32 | $ 9.05 |
Granted (per option) | 10.60 | 12.83 |
Exercised (per option) | 6.95 | 9.40 |
Expired (per option) | 13.52 | 14.64 |
Forfeited (per option) | 12.72 | 10.43 |
Outstanding end of period (per option) | 9.47 | 9.32 |
Weighted average share price at the time of exercise (per option) | $ 10.76 | $ 13.33 |
CAPITAL AND RESERVES - Outstand
CAPITAL AND RESERVES - Outstanding and exercisable (Details) | Dec. 31, 2018CAD ($)OptionsY | Dec. 31, 2017Options | Dec. 31, 2016Options |
Exercise prices of outstanding share options | |||
Outstanding (in Options) | Options | 4,562,919 | 6,454,327 | 7,524,727 |
Outstanding weighted expiration (in years) | Y | 2.60 | ||
Exercisable (in options) | Options | 3,293,682 | ||
Exercisable weighted average exercise price (in dollar per options) | $ 8.59 | ||
$5.85 - $7.99 | |||
Exercise prices of outstanding share options | |||
Outstanding (in Options) | Options | 1,647,075 | ||
Outstanding weighted expiration (in years) | Y | 1.58 | ||
Exercisable (in options) | Options | 1,647,075 | ||
Exercisable weighted average exercise price (in dollar per options) | $ 7.04 | ||
$8.00 - $9.99 | |||
Exercise prices of outstanding share options | |||
Outstanding (in Options) | Options | 1,615,469 | ||
Outstanding weighted expiration (in years) | Y | 2.65 | ||
Exercisable (in options) | Options | 1,214,877 | ||
Exercisable weighted average exercise price (in dollar per options) | $ 9.20 | ||
$10.00 - $11.99 | |||
Exercise prices of outstanding share options | |||
Outstanding (in Options) | Options | 130,000 | ||
Outstanding weighted expiration (in years) | Y | 3.13 | ||
Exercisable (in options) | Options | 77,200 | ||
Exercisable weighted average exercise price (in dollar per options) | $ 10.73 | ||
$12.00 - $13.99 | |||
Exercise prices of outstanding share options | |||
Outstanding (in Options) | Options | 1,135,375 | ||
Outstanding weighted expiration (in years) | Y | 3.94 | ||
Exercisable (in options) | Options | 319,530 | ||
Exercisable weighted average exercise price (in dollar per options) | $ 13.04 | ||
$14.00 - $15.99 | |||
Exercise prices of outstanding share options | |||
Outstanding (in Options) | Options | 35,000 | ||
Outstanding weighted expiration (in years) | Y | 2.61 | ||
Exercisable (in options) | Options | 35,000 | ||
Exercisable weighted average exercise price (in dollar per options) | $ 15.17 | ||
Minimum | $5.85 - $7.99 | |||
Exercise prices of outstanding share options | |||
Exercise prices | 5.85 | ||
Minimum | $8.00 - $9.99 | |||
Exercise prices of outstanding share options | |||
Exercise prices | 8 | ||
Minimum | $10.00 - $11.99 | |||
Exercise prices of outstanding share options | |||
Exercise prices | 10 | ||
Minimum | $12.00 - $13.99 | |||
Exercise prices of outstanding share options | |||
Exercise prices | 12 | ||
Minimum | $14.00 - $15.99 | |||
Exercise prices of outstanding share options | |||
Exercise prices | 14 | ||
Maximum | $5.85 - $7.99 | |||
Exercise prices of outstanding share options | |||
Exercise prices | 7.99 | ||
Maximum | $8.00 - $9.99 | |||
Exercise prices of outstanding share options | |||
Exercise prices | 9.99 | ||
Maximum | $10.00 - $11.99 | |||
Exercise prices of outstanding share options | |||
Exercise prices | 11.99 | ||
Maximum | $12.00 - $13.99 | |||
Exercise prices of outstanding share options | |||
Exercise prices | 13.99 | ||
Maximum | $14.00 - $15.99 | |||
Exercise prices of outstanding share options | |||
Exercise prices | $ 15.99 |
CAPITAL AND RESERVES - Compensa
CAPITAL AND RESERVES - Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
CAPITAL AND RESERVES | ||
Total share option compensation expense | $ 3,502 | $ 3,733 |
Share-based compensation | 3,502 | 2,367 |
Share-based compensation - capitalized | $ 0 | $ 1,366 |
CAPITAL AND RESERVES - Weighted
CAPITAL AND RESERVES - Weighted Average Assumptions (Details) - Y | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Weighted average assumptions | ||
Risk-free interest rate | 2.23% | 1.42% |
Expected volatility | 58.46% | 63.63% |
Expected life (in years) | 5 | 5 |
CAPITAL AND RESERVES - RSU, PSU
CAPITAL AND RESERVES - RSU, PSU, DSU Plans (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CAD ($)EquityInstruments$ / shares | Dec. 31, 2018USD ($)EquityInstruments | Dec. 31, 2017CAD ($)EquityInstruments$ / shares | Dec. 31, 2017USD ($)EquityInstruments | |
Authorized share capital | ||||
Restricted share unit liability | $ 1,502 | $ 2,730 | ||
Deferred share unit liability | 997 | |||
Share-based compensation - expensed | 3,502 | 2,367 | ||
Share-based compensation - capitalized | $ 0 | 1,366 | ||
RSU's | ||||
Authorized share capital | ||||
Vesting term (in years) | 3 years | 3 years | ||
Restricted share unit liability | $ 1,271 | 2,715 | ||
Share-based compensation - expensed | 1,558 | 3,365 | ||
Share-based compensation - capitalized | $ 0 | $ 687 | ||
Activity | ||||
Outstanding beginning balance (in equity instruments) | EquityInstruments | 729,064 | 729,064 | 735,729 | 735,729 |
Granted (in equity instruments) | EquityInstruments | 481,230 | 481,230 | 370,472 | 370,472 |
Settled (in equity instruments) | EquityInstruments | (385,063) | (385,063) | (355,648) | (355,648) |
Forfeited (in equity instruments) | EquityInstruments | (83,345) | (83,345) | (21,489) | (21,489) |
Outstanding ending balance (in equity instruments) | EquityInstruments | 741,886 | 741,886 | 729,064 | 729,064 |
Outstanding weighted fair value beginning (in dollars per equity instruments) | $ 14.41 | $ 10.65 | ||
Granted weighted fair value (in dollars per equity instruments) | $ 9.78 | $ 12.96 | ||
Settled weighted fair value (in dollars per equity instruments) | $ / shares | $ 9.67 | $ 13.07 | ||
Forfeited weighted fair value (in dollars per equity instruments) | $ 11.16 | $ 13.85 | ||
Outstanding weighted fair value ending (in dollars per equity instruments) | $ 11.31 | $ 14.41 | ||
PSU's | ||||
Authorized share capital | ||||
Restricted share unit liability | $ 231 | $ 15 | ||
Share-based compensation - expensed | $ 226 | $ 15 | ||
Activity | ||||
Outstanding beginning balance (in equity instruments) | EquityInstruments | 74,140 | 74,140 | ||
Granted (in equity instruments) | EquityInstruments | 91,945 | 91,945 | 74,140 | 74,140 |
Outstanding ending balance (in equity instruments) | EquityInstruments | 166,085 | 166,085 | 74,140 | 74,140 |
Outstanding weighted fair value beginning (in dollars per equity instruments) | $ 14.41 | |||
Granted weighted fair value (in dollars per equity instruments) | 9.78 | $ 13.08 | ||
Outstanding weighted fair value ending (in dollars per equity instruments) | $ 11.31 | $ 14.41 | ||
PSU's | Minimum | ||||
Authorized share capital | ||||
Units issued as percent to number granted | 0.00% | 0.00% | ||
PSU's | Maximum | ||||
Authorized share capital | ||||
Units issued as percent to number granted | 200.00% | 200.00% | ||
2018 DSU Plan | ||||
Authorized share capital | ||||
Deferred share unit liability | $ 997 | $ 0 | ||
Share-based compensation - expensed | $ 1,014 | $ 0 | ||
Activity | ||||
Granted (in equity instruments) | EquityInstruments | 117,587 | 117,587 | ||
Outstanding ending balance (in equity instruments) | EquityInstruments | 117,587 | 117,587 | ||
Granted weighted fair value (in dollars per equity instruments) | $ 9.78 | |||
Outstanding weighted fair value ending (in dollars per equity instruments) | $ 11.57 |
CAPITAL AND RESERVES - Earnings
CAPITAL AND RESERVES - Earnings (loss) per share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
CAPITAL AND RESERVES | ||
Net earnings (loss) for the year | $ 36,620 | $ (16,453) |
Weighted average number of ordinary shares outstanding | 182,905,004 | 181,208,295 |
Diluted weighted average number of common shares outstanding | 183,881,917 | 181,208,295 |
Earnings (loss) per share | ||
Basic (in dollar per share) | $ 0.20 | $ (0.09) |
Diluted (in dollar per share) | $ 0.20 | $ (0.09) |
Stock Options | ||
CAPITAL AND RESERVES | ||
Dilutive effect of share options on number of ordinary shares | 955,963 | |
RSU's | ||
CAPITAL AND RESERVES | ||
Dilutive effect of share options on number of ordinary shares | 20,950 |
RELATED PARTIES - Compensation
RELATED PARTIES - Compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
RELATED PARTIES | ||
Salaries and benefits | $ 5,851 | $ 9,228 |
Share-based compensation | 3,559 | 5,029 |
Total Key management personnel compensation | $ 9,410 | $ 14,257 |
RELATED PARTIES - Employment ag
RELATED PARTIES - Employment agreements (Details) - Dec. 31, 2017 $ in Thousands, $ in Thousands | CAD ($) | USD ($) |
RELATED PARTIES | ||
Retirement allowance payable | $ 6,000 | $ 4,469 |
SUPPLEMENTAL CASH FLOW INFORM_3
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Net change in non-cash working capital items included in mineral properties, plant and equipment: | ||
Taxes receivable | $ 4,522 | |
Accounts payable and accrued liabilities | $ (9,168) | (89,358) |
Increase (decrease) in non-cash working capital items | (9,168) | (84,836) |
Liabilities from financing activities, beginning period | 293,029 | |
Advance under credit facility | 97,000 | |
Net proceeds from convertible notes | 95,795 | |
Proceeds from loan facility | 480,000 | |
Cash payments | (75,006) | (1,319) |
Liabilities from financing activities, ending period | 456,254 | 293,029 |
Long-term debt | ||
Net change in non-cash working capital items included in mineral properties, plant and equipment: | ||
Liabilities from financing activities, beginning period | 667,995 | 501,160 |
Advance under credit facility | 97,000 | |
Proceeds from loan facility | 472,384 | |
Cash payments | (659,724) | |
Other non-cash movements | 61,560 | 69,835 |
Liabilities from financing activities, ending period | 542,215 | 667,995 |
Convertible notes | ||
Net change in non-cash working capital items included in mineral properties, plant and equipment: | ||
Liabilities from financing activities, beginning period | 76,582 | |
Net proceeds from convertible notes | 95,795 | |
Cash payments | (2,250) | (1,319) |
Other non-cash movements | 7,818 | (17,894) |
Liabilities from financing activities, ending period | $ 82,150 | $ 76,582 |
FINANCIAL RISK MANAGEMENT - Mar
FINANCIAL RISK MANAGEMENT - Market risk (Details) $ in Thousands | Dec. 31, 2018USD ($) |
USD/CAD exchange rate 10% appreciation | Accounts payable and accrued liabilities | |
Nature And Extent of Risks Arising From Financial Instruments | |
Impact on pre-tax earnings | $ (4,905) |
USD/CAD exchange rate 10% appreciation | Cash and cash equivalents | |
Nature And Extent of Risks Arising From Financial Instruments | |
Impact on pre-tax earnings | 1,085 |
USD/CAD exchange rate 10% appreciation | Receivables and other, excluding trade receivables | |
Nature And Extent of Risks Arising From Financial Instruments | |
Impact on pre-tax earnings | 90 |
USD/CAD exchange rate 10% appreciation | Restricted cash | |
Nature And Extent of Risks Arising From Financial Instruments | |
Impact on pre-tax earnings | 203 |
USD/CAD exchange rate 10% depreciation | Accounts payable and accrued liabilities | |
Nature And Extent of Risks Arising From Financial Instruments | |
Impact on pre-tax earnings | 4,905 |
USD/CAD exchange rate 10% depreciation | Cash and cash equivalents | |
Nature And Extent of Risks Arising From Financial Instruments | |
Impact on pre-tax earnings | (1,085) |
USD/CAD exchange rate 10% depreciation | Receivables and other, excluding trade receivables | |
Nature And Extent of Risks Arising From Financial Instruments | |
Impact on pre-tax earnings | (90) |
USD/CAD exchange rate 10% depreciation | Restricted cash | |
Nature And Extent of Risks Arising From Financial Instruments | |
Impact on pre-tax earnings | (203) |
Interest rate 1% appreciation | Long-term debt | Offtake obligation | |
Nature And Extent of Risks Arising From Financial Instruments | |
Impact on pre-tax earnings | 2,049 |
Interest rate 1% appreciation | Cash and cash equivalents | |
Nature And Extent of Risks Arising From Financial Instruments | |
Impact on pre-tax earnings | 1,087 |
Interest rate 1% appreciation | Other assets | Senior secured term credit facility | |
Nature And Extent of Risks Arising From Financial Instruments | |
Impact on pre-tax earnings | (173) |
Interest rate 1% depreciation | Long-term debt | Offtake obligation | |
Nature And Extent of Risks Arising From Financial Instruments | |
Impact on pre-tax earnings | (1,947) |
Interest rate 1% depreciation | Cash and cash equivalents | |
Nature And Extent of Risks Arising From Financial Instruments | |
Impact on pre-tax earnings | (1,087) |
Interest rate 1% depreciation | Other assets | Senior secured term credit facility | |
Nature And Extent of Risks Arising From Financial Instruments | |
Impact on pre-tax earnings | 173 |
Commodity price 10% appreciation | Long-term debt | Offtake obligation | |
Nature And Extent of Risks Arising From Financial Instruments | |
Impact on pre-tax earnings | (2,588) |
Commodity price 10% appreciation | Trade receivables | |
Nature And Extent of Risks Arising From Financial Instruments | |
Impact on pre-tax earnings | 8,844 |
Commodity price 10% depreciation | Long-term debt | Offtake obligation | |
Nature And Extent of Risks Arising From Financial Instruments | |
Impact on pre-tax earnings | 3,799 |
Commodity price 10% depreciation | Trade receivables | |
Nature And Extent of Risks Arising From Financial Instruments | |
Impact on pre-tax earnings | $ (8,844) |
FINANCIAL RISK MANAGEMENT - Cre
FINANCIAL RISK MANAGEMENT - Credit risk (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Maximum credit exposure | ||
Maximum exposure to credit risk of financial assets designated as measured at fair value through profit or loss | $ 62,343 | $ 78,554 |
Cash and cash equivalents | ||
Maximum credit exposure | ||
Maximum exposure to credit risk of financial assets designated as measured at fair value through profit or loss | 45,407 | 56,285 |
Trade receivables | ||
Maximum credit exposure | ||
Maximum exposure to credit risk of financial assets designated as measured at fair value through profit or loss | 14,487 | 11,067 |
Tax receivables | ||
Maximum credit exposure | ||
Maximum exposure to credit risk of financial assets designated as measured at fair value through profit or loss | 420 | 6,166 |
Restricted cash | ||
Maximum credit exposure | ||
Maximum exposure to credit risk of financial assets designated as measured at fair value through profit or loss | $ 2,029 | $ 5,036 |
FINANCIAL RISK MANAGEMENT - Liq
FINANCIAL RISK MANAGEMENT - Liquidity risk (Details) - USD ($) $ in Thousands | Dec. 18, 2018 | Sep. 21, 2015 | Dec. 31, 2018 | Dec. 31, 2017 | Feb. 14, 2017 | Dec. 31, 2016 |
Maturity Analysis For Derivative Financial Liabilities | ||||||
Principal repayments on loan facility | $ 542,215 | $ 667,995 | $ 501,160 | |||
Convertible notes | 82,150 | 76,582 | ||||
Accounts payable and accrued liabilities | 50,672 | 60,438 | ||||
Restricted share unit liability | 1,502 | 2,730 | ||||
Cash and cash equivalents | 45,407 | 56,285 | 141,791 | |||
Aggregate principal amount | $ 100,000 | |||||
Repayment of credit facility | 422,724 | |||||
Repurchase of stream obligation | (237,000) | |||||
Senior secured term credit facility | ||||||
Maturity Analysis For Derivative Financial Liabilities | ||||||
Principal repayments on loan facility | 365,890 | 232,438 | ||||
Aggregate principal amount | $ 350,000 | |||||
Repayment of credit facility | $ 422,724 | |||||
Senior secured loan facility | ||||||
Maturity Analysis For Derivative Financial Liabilities | ||||||
Principal repayments on loan facility | 472,146 | |||||
Aggregate principal amount | 480,000 | |||||
Stream obligation | ||||||
Maturity Analysis For Derivative Financial Liabilities | ||||||
Principal repayments on loan facility | $ 224,020 | $ 201,020 | ||||
Cash consideration | $ 20,000 | |||||
Repurchase of stream obligation | $ (237,000) | |||||
Liquidity risk | ||||||
Maturity Analysis For Derivative Financial Liabilities | ||||||
Convertible notes | 100,000 | |||||
Accounts payable and accrued liabilities | 43,385 | |||||
Interest on convertible notes | 7,866 | |||||
Restricted share unit liability | 1,502 | |||||
Finance lease obligation | 839 | |||||
Total financial liabilities | 706,709 | |||||
Cash and cash equivalents | 45,407 | |||||
working capital deficit | 48,163 | |||||
Liquidity risk | 1 year | ||||||
Maturity Analysis For Derivative Financial Liabilities | ||||||
Accounts payable and accrued liabilities | 43,385 | |||||
Interest on convertible notes | 2,250 | |||||
Restricted share unit liability | 948 | |||||
Finance lease obligation | 277 | |||||
Total financial liabilities | 152,046 | |||||
Liquidity risk | 2-3 years | ||||||
Maturity Analysis For Derivative Financial Liabilities | ||||||
Interest on convertible notes | 4,500 | |||||
Restricted share unit liability | 554 | |||||
Finance lease obligation | 527 | |||||
Total financial liabilities | 174,804 | |||||
Liquidity risk | 4-5 years | ||||||
Maturity Analysis For Derivative Financial Liabilities | ||||||
Convertible notes | 100,000 | |||||
Interest on convertible notes | 1,116 | |||||
Finance lease obligation | 35 | |||||
Total financial liabilities | 379,859 | |||||
Liquidity risk | Senior secured loan facility | ||||||
Maturity Analysis For Derivative Financial Liabilities | ||||||
Principal repayments on loan facility | 480,000 | |||||
Interest payments on loan facility | 73,117 | |||||
Aggregate principal amount | 480,000 | |||||
Liquidity risk | Senior secured loan facility | 1 year | ||||||
Maturity Analysis For Derivative Financial Liabilities | ||||||
Principal repayments on loan facility | 80,000 | |||||
Interest payments on loan facility | 25,186 | |||||
Liquidity risk | Senior secured loan facility | 2-3 years | ||||||
Maturity Analysis For Derivative Financial Liabilities | ||||||
Principal repayments on loan facility | 133,333 | |||||
Interest payments on loan facility | 35,890 | |||||
Liquidity risk | Senior secured loan facility | 4-5 years | ||||||
Maturity Analysis For Derivative Financial Liabilities | ||||||
Principal repayments on loan facility | 266,667 | |||||
Interest payments on loan facility | 12,041 | |||||
Liquidity risk | Stream obligation | ||||||
Maturity Analysis For Derivative Financial Liabilities | ||||||
Repayment of credit facility | 422,724 | |||||
Repurchase of stream obligation | $ (237,000) |
FINANCIAL RISK MANAGEMENT - Fai
FINANCIAL RISK MANAGEMENT - Fair value estimation (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair value | Level 2 | ||
Fair Value Measurement Of Assets And Liabilities | ||
Financial assets | $ 14,487 | $ 11,067 |
Financial liabilities | 84,649 | 79,312 |
Fair value | Level 3 | ||
Fair Value Measurement Of Assets And Liabilities | ||
Financial assets | 132 | |
Financial liabilities | 70,069 | 302,105 |
Fair value | Restricted share unit liability | Level 2 | ||
Fair Value Measurement Of Assets And Liabilities | ||
Financial liabilities | 1,502 | 2,730 |
Fair value | Deferred share unit liability | Level 2 | ||
Fair Value Measurement Of Assets And Liabilities | ||
Financial liabilities | 997 | |
Fair value | Offtake obligation | Level 3 | ||
Fair Value Measurement Of Assets And Liabilities | ||
Financial liabilities | 70,069 | 78,085 |
Fair value | Stream obligation | Level 3 | ||
Fair Value Measurement Of Assets And Liabilities | ||
Financial liabilities | 224,020 | |
Fair value | Debt portion of convertible note | Level 2 | ||
Fair Value Measurement Of Assets And Liabilities | ||
Financial liabilities | 82,150 | 76,582 |
Fair value | Trade receivables | Level 2 | ||
Fair Value Measurement Of Assets And Liabilities | ||
Financial assets | 14,487 | 11,067 |
Fair value | Other assets | Level 3 | ||
Fair Value Measurement Of Assets And Liabilities | ||
Financial assets | 132 | |
Carrying value | Designated at FVTPL | ||
Fair Value Measurement Of Assets And Liabilities | ||
Financial liabilities | 72,568 | 304,835 |
Carrying value | Designated at FVTPL | Restricted share unit liability | ||
Fair Value Measurement Of Assets And Liabilities | ||
Financial liabilities | 1,502 | 2,730 |
Carrying value | Designated at FVTPL | Deferred share unit liability | ||
Fair Value Measurement Of Assets And Liabilities | ||
Financial liabilities | 997 | |
Carrying value | Designated at FVTPL | Offtake obligation | ||
Fair Value Measurement Of Assets And Liabilities | ||
Financial liabilities | 70,069 | 78,085 |
Carrying value | Designated at FVTPL | Stream obligation | ||
Fair Value Measurement Of Assets And Liabilities | ||
Financial liabilities | 224,020 | |
Carrying value | Other financial liabilities | ||
Fair Value Measurement Of Assets And Liabilities | ||
Financial liabilities | 597,344 | 495,908 |
Carrying value | Other financial liabilities | Accounts payable and accrued liabilities | ||
Fair Value Measurement Of Assets And Liabilities | ||
Financial liabilities | 43,048 | 53,436 |
Carrying value | Other financial liabilities | Senior secured term credit facility | ||
Fair Value Measurement Of Assets And Liabilities | ||
Financial liabilities | 472,146 | 365,890 |
Carrying value | Other financial liabilities | Debt portion of convertible note | ||
Fair Value Measurement Of Assets And Liabilities | ||
Financial liabilities | 82,150 | 76,582 |
Carrying value | FVTPL | ||
Fair Value Measurement Of Assets And Liabilities | ||
Financial assets | 14,487 | 132 |
Carrying value | FVTPL | Trade receivables | ||
Fair Value Measurement Of Assets And Liabilities | ||
Financial assets | 14,487 | |
Carrying value | FVTPL | Other assets | ||
Fair Value Measurement Of Assets And Liabilities | ||
Financial assets | 132 | |
Carrying value | Amortized cost, Financial assets | ||
Fair Value Measurement Of Assets And Liabilities | ||
Financial assets | 47,436 | |
Carrying value | Amortized cost, Financial assets | Cash and cash equivalents | ||
Fair Value Measurement Of Assets And Liabilities | ||
Financial assets | 45,407 | |
Carrying value | Amortized cost, Financial assets | Restricted cash | ||
Fair Value Measurement Of Assets And Liabilities | ||
Financial assets | $ 2,029 | |
Carrying value | Loans and receivables | ||
Fair Value Measurement Of Assets And Liabilities | ||
Financial assets | 72,388 | |
Carrying value | Loans and receivables | Cash and cash equivalents | ||
Fair Value Measurement Of Assets And Liabilities | ||
Financial assets | 56,285 | |
Carrying value | Loans and receivables | Trade receivables | ||
Fair Value Measurement Of Assets And Liabilities | ||
Financial assets | 11,067 | |
Carrying value | Loans and receivables | Restricted cash | ||
Fair Value Measurement Of Assets And Liabilities | ||
Financial assets | $ 5,036 |
TAXATION - Deferred income tax
TAXATION - Deferred income tax liability (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred income tax liability | ||
Deferred income tax liability | $ (15,236) | |
Deductible temporary differences for which no deferred tax assets have been recognized | 37,962 | $ 75,948 |
Tax losses expiring in periods from 2030 to 2037 | 275,265 | 256,463 |
Investment tax credits | 8,965 | 8,965 |
Tax loss carry forwards | ||
Deferred income tax liability | ||
Deferred income tax liability | 74,400 | 53,266 |
Deductible temporary differences for which no deferred tax assets have been recognized | 59,472 | |
Long term debt | ||
Deferred income tax liability | ||
Deferred income tax liability | 10,798 | 22,525 |
Investment tax credits | ||
Deferred income tax liability | ||
Deferred income tax liability | 6,545 | 6,545 |
Financing costs | ||
Deferred income tax liability | ||
Deferred income tax liability | 4,310 | 4,288 |
Other | ||
Deferred income tax liability | ||
Deferred income tax liability | 2,080 | 756 |
Deductible temporary differences for which no deferred tax assets have been recognized | 68 | 68 |
Decommissioning and restoration provision | ||
Deferred income tax liability | ||
Deferred income tax liability | 4,978 | |
Deductible temporary differences for which no deferred tax assets have been recognized | 18,947 | |
Inventories | ||
Deferred income tax liability | ||
Deferred income tax liability | (847) | (964) |
Provincial mining tax attributes | ||
Deferred income tax liability | ||
Deferred income tax liability | (6,088) | |
Deductible temporary differences for which no deferred tax assets have been recognized | 18,947 | 16,408 |
Mineral interests | ||
Deferred income tax liability | ||
Deferred income tax liability | $ (106,434) | $ (91,394) |
TAXATION - Income tax expense (
TAXATION - Income tax expense (recovery) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
TAXATION | ||
Current tax expense | $ 4,196 | $ 1,621 |
Deferred income tax expense (recovery) | 12,668 | (7,022) |
Total tax (recovery) expense | $ 16,864 | $ (5,401) |
TAXATION - Provision for income
TAXATION - Provision for income tax (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
TAXATION | ||
Statutory income tax rates | 27.00% | 26.00% |
Expected tax (recovery) expense | $ 14,441 | $ (5,680) |
Change in income tax rates | (574) | |
Provincial mining taxes | 800 | 1,621 |
Change in unrecognized temporary differences | (10,942) | 7,679 |
Share-based compensation and other items | 943 | 988 |
Flow-through shares | 823 | 842 |
Flow-through share premium | (526) | (574) |
Impact of foreign exchange on CAD denominated tax attributes | 11,735 | (12,550) |
Non-temporary differences | (410) | 2,847 |
Total tax (recovery) expense | 16,864 | (5,401) |
Deductible temporary differences for which no deferred tax assets have been recognized | $ 37,962 | $ 75,948 |
COMMITMENTS - Contractual oblig
COMMITMENTS - Contractual obligations (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Contingencies line items | |||
Principal repayments on loan facility | $ 542,215 | $ 667,995 | $ 501,160 |
Repayment of convertible notes | 82,150 | 76,582 | |
Decommissioning and restoration provision | 18,947 | $ 18,436 | $ 13,675 |
Operating leases | 13,804 | ||
Purchase commitments | 5,568 | ||
Finance lease obligation | 839 | ||
Total | 700,141 | ||
1 year | |||
Contingencies line items | |||
Decommissioning and restoration provision | 422 | ||
Operating leases | 4,571 | ||
Purchase commitments | 5,568 | ||
Finance lease obligation | 277 | ||
Total | 118,274 | ||
2-3 years | |||
Contingencies line items | |||
Decommissioning and restoration provision | 51 | ||
Operating leases | 7,649 | ||
Finance lease obligation | 527 | ||
Total | 181,950 | ||
4-5 years | |||
Contingencies line items | |||
Operating leases | 1,462 | ||
Finance lease obligation | 35 | ||
Total | 381,321 | ||
More than 5 years | |||
Contingencies line items | |||
Decommissioning and restoration provision | 18,474 | ||
Operating leases | 122 | ||
Total | 18,596 | ||
Credit Facility | |||
Contingencies line items | |||
Principal repayments on loan facility | 480,000 | ||
Repayment of convertible notes | 107,866 | ||
Interest payments on loan facility | 73,117 | ||
Credit Facility | 1 year | |||
Contingencies line items | |||
Principal repayments on loan facility | 80,000 | ||
Interest payments on loan facility | 25,186 | ||
Credit Facility | 2-3 years | |||
Contingencies line items | |||
Principal repayments on loan facility | 133,333 | ||
Repayment of convertible notes | 4,500 | ||
Interest payments on loan facility | 35,890 | ||
Credit Facility | 4-5 years | |||
Contingencies line items | |||
Principal repayments on loan facility | 266,667 | ||
Interest payments on loan facility | 12,041 | ||
Convertible notes | 1 year | |||
Contingencies line items | |||
Repayment of convertible notes | 2,250 | ||
Convertible notes | 4-5 years | |||
Contingencies line items | |||
Repayment of convertible notes | $ 101,116 |
COMMITMENTS - Brucejack Mine an
COMMITMENTS - Brucejack Mine and Offtake and stream obligations (Details) - USD ($) $ in Thousands | Sep. 21, 2015 | Dec. 31, 2018 | Dec. 31, 2017 |
Contingencies | |||
Royalties and selling costs | $ 19,739 | $ 7,308 | |
Mineral properties | |||
Contingencies | |||
Return royalty on production from property | 1.20% | ||
Royalties and selling costs | $ 258 | $ 0 | |
Mineral properties | Refined Gold | |||
Contingencies | |||
Mineral (in ounces) | 503,386 | ||
Mineral properties | Refined Silver | |||
Contingencies | |||
Mineral (in ounces) | 17,907,080 | ||
Stream obligation | |||
Contingencies | |||
Obligated payment | $ 20,000 | ||
Stream obligation | Refined Gold | |||
Contingencies | |||
Mineral (in ounces) | 7,067,000 | ||
Mineral obligation (in percent) | 8.00% | ||
Stream obligation | Refined Silver | |||
Contingencies | |||
Mineral (in ounces) | 26,297,000 | ||
Mineral obligation (in percent) | 8.00% | ||
Offtake obligation | Refined Gold | |||
Contingencies | |||
Mineral (in ounces) | 7,067,000 | ||
Mineral obligation (in percent) | 100.00% |
CONTINGENCIES (Details)
CONTINGENCIES (Details) $ in Thousands | Sep. 07, 2018complaint | Apr. 24, 2017CAD ($) | Oct. 29, 2013CAD ($) | Oct. 13, 2013 | Jan. 31, 2014plaintiff | Nov. 18, 2013complaint |
Contingencies line items | ||||||
Bulk sample | 10,000 | |||||
Damages sought | $ | $ 14,563 | $ 60,000 | ||||
2013 United States class actions | ||||||
Contingencies line items | ||||||
Putative class action complaints | 5 | |||||
Lead plaintiffs | plaintiff | 3 | |||||
2018 United States class actions | ||||||
Contingencies line items | ||||||
Putative class action complaints | 1 |