Gatos Silver (GATO) 10-Q 9 Dec 20 2020 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2020	Dec. 09, 2020
Document and Entity Information [Abstract]
Document Type	10-Q
Document Period End Date	Sep. 30, 2020
Entity Registrant Name	GATOS SILVER, INC.
Title of 12(b) Security	Common Stock (par value $0.001 per share)
Trading Symbol	GATO
Security Exchange Name	NYSE
Entity Current Reporting Status	No
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		59,183,076
Entity Central Index Key	0001517006
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Current Assets
Cash and cash equivalents	$ 3,627	$ 9,085
Materials and supplies inventory	106	103
Deferred financing costs	3,381	1,777
Related party receivables	762	6,422
Other current assets	1,116	1,068
Total current assets	8,992	18,455
Non-Current Assets
Investment in affiliates	105,159	105,396
Metals inventory	250	250
Property, plant and equipment, net	28,418	30,194
Total Assets	142,819	154,295
Current Liabilities
Accounts payable and other accrued liabilities	4,774	3,465
Related-party convertible note	15,000
Non-Current Liabilities
Reclamation obligations	1,521	1,439
Shareholders' Equity
Common Stock, $0.001 par value; 100,000,000 shares authorized; 80,646,832 shares outstanding as of September 30, 2020 and December 31, 2019	80	80
Paid-in capital	379,204	375,921
Accumulated deficit	(256,733)	(225,583)
Treasury stock, at cost, 289,177 shares as of June 30, 2020 and December 31, 2019	(1,027)	(1,027)
Total shareholders' equity	121,524	149,391
Total Liabilities and Shareholders' Equity	$ 142,819	$ 154,295

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2020	Dec. 31, 2019
CONDENSED CONSOLIDATED BALANCE SHEETS
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares outstanding	80,646,832	80,646,832
Treasury stock, shares	289,177	289,177

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Expenses
Exploration	$ 236	$ 386	$ 834	$ 913
Pre-development	507	561	1,555	1,701
General and administrative	2,387	839	5,644	3,528
Amortization	594	697	1,797	1,935
Total expenses	3,724	2,483	9,830	8,077
Other expense (income)
Dilution loss on affiliates				11,231
Equity (income) loss in affiliates	(3,447)	1,832	18,069	2,143
Arrangement fees	764	575	3,049	1,470
Interest Expense	147		190
Other income	(1)	(10)	(10)	(25)
Foreign exchange (income) loss	(2)	(6)	22
Net other expense (income)	(2,539)	2,391	21,320	14,819
Net loss	1,185	4,874	31,150	22,896
Other comprehensive (gain) loss
Unrealized (gain) on securities, net of tax		(37)		(32)
Comprehensive loss	$ 1,185	$ 4,837	$ 31,150	$ 22,864
Net loss per share:
Basic and diluted	$ 0.01	$ 0.06	$ 0.38	$ 0.30
Weighted average shares outstanding:
Basic and diluted	81,012,253	80,539,748	81,011,545	76,900,138

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Treasury Stock	Paid-in Capital	Accumulated Deficit	Other Comprehensive Loss	Total
Balance at Dec. 31, 2018	$ 74	$ (1,027)	$ 331,802	$ (187,765)	$ (32)	$ 143,052
Balance (in shares) at Dec. 31, 2018	73,902,522	289,177
Stock-based compensation			434			434
Unrealized loss on investments, net of tax					(8)	(8)
Net loss				(2,403)		(2,403)
Balance at Mar. 31, 2019	$ 74	$ (1,027)	332,236	(190,168)	(40)	141,075
Balance (in shares) at Mar. 31, 2019	73,902,522	289,177
Balance at Dec. 31, 2018	$ 74	$ (1,027)	331,802	(187,765)	(32)	143,052
Balance (in shares) at Dec. 31, 2018	73,902,522	289,177
Unrealized loss on investments, net of tax						32
Net loss						(22,896)
Balance at Sep. 30, 2019	$ 80	$ (1,027)	375,227	(210,661)		163,619
Balance (in shares) at Sep. 30, 2019	80,646,832	289,177
Balance at Mar. 31, 2019	$ 74	$ (1,027)	332,236	(190,168)	(40)	141,075
Balance (in shares) at Mar. 31, 2019	73,902,522	289,177
Issuance of common stock	$ 4		25,462			25,466
Issuance of common stock (in shares)	4,244,310
Stock-based compensation			1,288			1,288
Deferred share unit compensation			316			316
Unrealized loss on investments, net of tax					3	3
Other			34			34
Net loss				(15,619)		(15,619)
Balance at Jun. 30, 2019	$ 78	$ (1,027)	359,336	(205,787)	(37)	152,563
Balance (in shares) at Jun. 30, 2019	78,146,832	289,177
Issuance of common stock	$ 2		14,997			14,999
Issuance of common stock (in shares)	2,500,000
Stock-based compensation			807			807
Deferred share unit compensation			175			175
Unrealized loss on investments, net of tax					37	37
Other			(88)			(88)
Net loss				(4,874)		(4,874)
Balance at Sep. 30, 2019	$ 80	$ (1,027)	375,227	(210,661)		163,619
Balance (in shares) at Sep. 30, 2019	80,646,832	289,177
Balance at Dec. 31, 2019	$ 80	$ (1,027)	375,921	(225,583)	0	149,391
Balance (in shares) at Dec. 31, 2019	80,646,832	289,177
Stock-based compensation	$ 0	$ 0	1,031	0	0	1,031
Deferred share unit compensation	0	0	61	0	0	61
Net loss	0	0	0	(17,821)	0	(17,821)
Balance at Mar. 31, 2020	$ 80	$ (1,027)	377,013	(243,404)	0	132,662
Balance (in shares) at Mar. 31, 2020	80,646,832	289,177
Balance at Dec. 31, 2019	$ 80	$ (1,027)	375,921	(225,583)	0	149,391
Balance (in shares) at Dec. 31, 2019	80,646,832	289,177
Net loss						(31,150)
Balance at Sep. 30, 2020	$ 80	$ (1,027)	379,204	(256,733)	0	121,524
Balance (in shares) at Sep. 30, 2020	80,646,832	289,177
Balance at Mar. 31, 2020	$ 80	$ (1,027)	377,013	(243,404)	0	132,662
Balance (in shares) at Mar. 31, 2020	80,646,832	289,177
Stock-based compensation	$ 0	$ 0	1,086	0	0	1,086
Net loss	0	0	0	(12,144)	0	(12,144)
Balance at Jun. 30, 2020	$ 80	$ (1,027)	378,099	(255,548)	0	121,604
Balance (in shares) at Jun. 30, 2020	80,646,832	289,177
Stock-based compensation	$ 0	$ 0	1,105	0	0	1,105
Net loss	0	0	0	(1,185)	0	(1,185)
Balance at Sep. 30, 2020	$ 80	$ (1,027)	$ 379,204	$ (256,733)	$ 0	$ 121,524
Balance (in shares) at Sep. 30, 2020	80,646,832	289,177

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
OPERATING ACTIVITIES
Net loss	$ (31,150)	$ (22,896)
Adjustments to reconcile net loss to net cash used by operating activities:
Amortization	1,797	1,935
Dilution loss on affiliates		11,231
Accretion expense	82	76
Stock-based compensation expense	3,222	2,529
Equity loss in affiliates	18,069	2,143
Other		27
Changes in operating assets and liabilities:
Other current assets	(60)	(89)
Receivables from related-parties	(3,788)	(2,945)
Deposits	12	12
Accounts payable and other accrued liabilities	(80)	457
Materials and supplies inventory	(2)	56
Net cash used by operating activities	(11,898)	(7,464)
INVESTING ACTIVITIES
Purchase of property, plant and equipment	(22)	(513)
Investment in affiliates	(8,383)	(19,760)
Net cash used by investing activities	(8,405)	(20,273)
FINANCING ACTIVITIES
Related-party convertible debt	15,000
Payroll Protection Program loan	567
Deferred financing costs	(722)	(588)
Issuance of common stock		40,466
Net cash provided by financing activities	14,845	39,878
Net increase (decrease) in cash and cash equivalents	(5,458)	12,141
Cash and cash equivalents, beginning of period	9,085	3,457
Cash and cash equivalents, end of period	3,627	15,598
Supplemental disclosure of noncash transactions:
Deferred financing costs included in accounts payable and accrued liabilities	882
Director fees converted to deferred share units	61	$ 491
Conversion of related party AR into LGJV capital contribution	$ 9,448

Description of Business and Bas

Description of Business and Basis of Preparation of Financial Statements	9 Months Ended
	Sep. 30, 2020
Description of Business and Basis of Preparation of Financial Statements
Description of Business and Basis of Preparation of Financial Statements	1. Description of Business and Basis of Preparation of Financial Statements These financial statements represent the condensed consolidated financial position and results of operations of Gatos Silver, Inc. and its subsidiaries (“Gatos Silver” or “the Company”). Unless the context otherwise requires, references to Gatos Silver or the Company mean Gatos Silver, Inc. and its consolidated subsidiaries. On October 30, 2020, the Company completed an initial public offering of 21,430,000 shares of its common stock at a price of $7.00 per share, resulting in gross proceeds from the offering of $150,010 and shares trading on the New York Stock Exchange and the Toronto Stock Exchange. On November 10, 2020, the Company issued an additional 3,214,500 shares of common stock at a price of $7.00 per share, through the exercise of the over-allotment option, with gross proceeds from the additional issuance of $22,502. In conjunction with the initial public offering, the Company changed its name from Sunshine Silver Mining & Refining Corporation to Gatos Silver, Inc. Mexico — Los Gatos District The Company’s primary Mexico efforts are focused on the operation of the Los Gatos Joint Venture (“LGJV”) in Chihuahua Mexico. On January 1, 2015, the Company entered into the LGJV to develop the Los Gatos District ("LGD”) with Dowa Metals and Mining Co., Ltd. (“Dowa”). The LGJV operating entities consist of Minera Plata Real S. de R.L. de C.V (“MPR”), Operaciones San Jose del Plata S. de R.L. de C.V. and Servicios San Jose del Plata S. de R.L. de C.V. (collectively the “LGJV Entities”). The LGJV completed an advanced definitional drilling and decline development program in 2016, a feasibility study in January 2017 and a technical update to the feasibility study in July 2020. Dowa completed its $50,000 funding requirement on April 1, 2016 thereby initially acquiring a 30% interest in the LGJV and the right to purchase future zinc‑concentrate production at market rates. In May 2019, Dowa increased its ownership interest to 48.5% through the conversion of the Dowa MPR Loan to equity. See Note 11 for further discussion. The LGJV ownership is currently 51.5% Gatos Silver and 48.5% Dowa. On September 1, 2019, the LGJV commenced commercial production of its two concentrate products: a lead concentrate and a zinc concentrate. The LGJV’s lead and zinc concentrates are sold to third‑party customers. On March 30, 2020, in response to the coronavirus pandemic, the Mexican government issued a temporary 30‑day suspension of all non‑essential activities, which was subsequently extended to May 31, 2020. Accordingly, the LGJV temporarily suspended non‑essential activities. The LGJV resumed mining operations in late May 2020 as permitted by the Mexican government. The Company will be performing additional definitional drilling to further define and expand mineralization of the Cerro Los Gatos Mine, as well as continuing definitional and exploratory drilling at the nearby Esther deposit. Mexico — Exploration The Company’s other regional Mexico exploration efforts are conducted through its wholly‑owned subsidiary, Minera Luz del Sol S. de R.L. de C.V. United States - Sunshine Complex The Company has conducted an advanced exploration drilling program and a rehabilitation program to improve certain mining infrastructure at the Sunshine Complex. The Sunshine Complex, located in the Coeur d’Alene Mining District in Idaho, is comprised of the Sunshine Mine and the Sunshine Big Creek Refinery. The Sunshine Mine is currently on care and maintenance, with a continued but reduced program of infrastructure improvement. As a result of the initial public offering, the Sunshine Complex was spun-off from Gatos Silver, creating Silver Opportunity Partners Corporation, which subsequently was renamed Sunshine Silver Mining & Refining Corporation, and will be presented as a discontinued operation in the Company’s consolidated financial statements for reporting periods subsequent to the initial public offering. Pursuant to the spin-off and discontinued operations presentation, certain costs, assets and liabilities will be removed from the consolidated financial statements, including but not limited to, mineral properties, property, plant and equipment and asset retirement obligation. Liquidity Management assessed the Company's ability to continue as a going concern for one year from the consolidated financial statement issuance date for the quarter ended September 30, 2020. The Company has a history of operating losses and cash outflows from operations which are both expected to continue. As of June 30, 2020, substantial doubt existed surrounding the Company's ability to meet its obligations within one year of the issuance date of the Registration Statement on Form S-1, which contained the June 30, 2020 consolidated financial statements, because additional capital raises were outside of management's control at the time. Upon completion of the initial public offering on October 30, 2020, the Company raised the funds necessary to satisfy its obligations, including the guarantee of the LGJV working capital facility agreement (the “WCF”). Accordingly, Management has concluded there is not a substantial doubt regarding the Company’s ability to continue as a going concern for at least one year from the issuance of these consolidated financial statements.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2020
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies The accompanying condensed consolidated financial statements at September 30, 2020 and for the three and nine-month periods ended September 30, 2020 and 2019 are unaudited, but include all adjustments, consisting of normal recurring entries, which we believe to be necessary for a fair presentation for the dates and periods presented. Interim results are not necessarily indicative of results for a full year. The financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all financial information and disclosures required by U.S. GAAP for complete financial statements and should be read in conjunction with our audited consolidated financial statements for the year ended December 31, 2019 included in the final prospectus filed with the Securities and Exchange Commission on October 29, 2020. We disclosed in our consolidated financial statements for the year ended December 31, 2019, those accounting policies that we consider significant in determining our results of operations and financial position. There have been no material changes to, or in the application of, the accounting policies previously identified and described in our consolidated financial statements for the year ended December 31, 2019. There have been no accounting pronouncements adopted during the nine months ended September 30, 2020, which we expect to have a material impact on our financial statements.

Other Current Assets

Other Current Assets	9 Months Ended
	Sep. 30, 2020
Other Current Assets
Other Current Assets	3. Other Current Assets September 30, December 31, 2020 2019 Value added tax receivable $ 266 $ 213 Restricted cash 467 466 Prepaid expenses 367 359 Deposits and other 16 30 Total other current assets $ 1,116 $ 1,068 At September 30, 2020 and December 31, 2019, the Company had restricted cash in the form of a certificate of deposit totaling $275 as collateral for a letter of credit issued by a financial institution as security to a governmental agency for certain of the Company's reclamation obligations. Additionally, we have cash restricted as collateral on corporate credit cards.

Property, Plant and Equipment,

Property, Plant and Equipment, net	9 Months Ended
	Sep. 30, 2020
Property, Plant and Equipment, net
Property, Plant and Equipment, net	4. Property, Plant and Equipment, net September 30, December 31, 2020 2019 Mineral properties (1) $ 18,203 $ 18,203 Plant and equipment 13,643 13,621 Land 1,814 1,814 Buildings, infrastructure and improvements 16,798 16,798 Furniture, fixtures and computers 1,565 1,565 Property, plant and equipment at cost 52,023 52,001 Less accumulated amortization (23,605) (21,807) Property, plant and equipment, net $ 28,418 $ 30,194 (1) No amortization is currently being recognized on the Sunshine Mine mineral properties as the Company has not established proven and probable reserves, the mine has not yet been placed back in service, and there is no basis over which to amortize these costs. Mineral Properties The Company conducts exploration activities on patented and unpatented mining claims in the United States and under mining concessions in Mexico. The Company is required to make mineral and concession lease payments to various entities to secure the appropriate claims or surface rights. Certain of these agreements also have royalty payments that are triggered when the Company produces and sells minerals.

Accounts Payable and Other Accr

Accounts Payable and Other Accrued Liabilities	9 Months Ended
	Sep. 30, 2020
Accounts Payable and Other Accrued Liabilities
Accounts Payable and Other Accrued Liabilities	5. Accounts Payable and Other Accrued Liabilities September 30, December 31, 2020 2019 Accounts payable $ 183 $ 270 Accrued expenses 2,542 1,724 Paycheck Protection Program loan 567 — Accrued compensation 1,482 1,471 Total accounts payable and other current liabilities $ 4,774 $ 3,465 In April 2020, the Company received $567 under a forgivable loan, bearing 1% annual interest, related to the Paycheck Protection Program (“PPP”). The PPP established as part of the United States’ Coronavirus Aid, Relief and Economic Security Act (“CARES Act”), provides loans to qualifying businesses for amounts up to 2.5 times the average monthly payroll expenses of the qualifying business. The loans and accrued interest are forgivable after eight weeks as long as the borrower uses the loan proceeds for eligible purposes, including payroll, benefits, rent and utilities, and maintains its payroll levels. The amount of loan forgiveness will be reduced if the borrower terminates or reduces salaries during the eight-week period. The unforgiven portion of the PPP loan, if any, is payable over two years at an interest rate of 1%, with deferred payments for the first six months. The Company used the proceeds for purposes consistent with the PPP. While the Company currently believes that its use of the loan proceeds has met the conditions for forgiveness of the loan, we cannot guarantee forgiveness of the loan, in whole or in part.

Related-Party Convertible Notes

Related-Party Convertible Notes	9 Months Ended
	Sep. 30, 2020
Related Party Convertible Notes
Related Party Convertible Notes	6. Related‑Party Convertible Notes During the second quarter of 2020, the Company entered into a convertible note purchase agreement with Electrum Silver US LLC for the issuance of an aggregate of $15,000 of convertible notes. The convertible promissory notes incur an annual interest of 5%. Upon the Company issuing common stock in a qualified financing, as defined, prior to April 19, 2023, the principal amount then outstanding and accrued but unpaid interest under the convertible notes will automatically convert into common stock of the Company at a price per share equal to the lesser of (A) 80% of the price per share of the shares that are issued and sold by the Company in the qualified financing or (B) $7.50 per share. The convertible promissory notes and any accrued but unpaid interest is due and payable on April 19, 2023, unless converted, exchanged or otherwise paid. As of September 30, 2020, the Company had borrowed $15,000 under the convertible notes and had accrued interest of $187. On October 30, 2020, the outstanding convertible notes balance and interest accrued through September 30, 2020 were converted into 2,712,003 shares of common stock of the Company. $63 of interest was accrued in October 2020 on the convertible notes and was settled in cash on October 30, 2020.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2020
Related-Party Transactions
Related Party Transactions	7. Related‑Party Transactions Service Agreement The Company has a management agreement with the LGJV to provide certain consulting and administrative services. The Company received $300 and $1,950 from the LGJV under this agreement for the nine months ended September 30, 2020 and 2019, respectively. The Company had receivables under this agreement of $600 and $4,050 as of September 30, 2020 and December 31, 2019, respectively. The Company also incurs certain LGJV costs that are subsequently reimbursed by the LGJV. During the nine months ended September 30, 2020, $5,850 of receivables under this agreement, as well as other outstanding receivables to be reimbursed by the LGJV, were converted to capital of the LGJV, and recorded as an increase in the Investment in Affiliates by the Company.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2020
Stockholders' Equity
Stockholders' Equity	8. Stockholders’ Equity Stock Option Transactions The Company’s stock options have a contractual term of 10 years and entitle the holder to purchase shares of the Company’s common stock. The options granted to employees and LGJV personnel have a requisite service period of four years. The options granted to non‑employee directors have a requisite service period of one year. The Company granted 1,620,667 and 1,253,000 stock options during the nine months ended September 30, 2020 and 2019, respectively. Total unrecognized stock‑based compensation expense as of September 30, 2020 was $6,704 which is expected to be recognized over a weighted average period of 1.9 years. The weighted‑average grant‑date fair value per share was $3.28 and $3.69 for the nine months ended September 30, 2020 and 2019, respectively. Stock option activity for the nine months ended September 30, 2020 is summarized in the following tables: Weighted‑Average Exercise Director and Employee Options Shares Price Outstanding at December 31, 2019 7,102,361 $ 7.20 Granted 1,620,667 $ 6.00 Exercised — $ — Forfeited — $ — Outstanding at September 30, 2020 8,723,028 $ 6.97 Vested at September 30, 2020 5,925,062 $ 7.61 Weighted‑Average Exercise LGJV Personnel Options Shares Price Outstanding at December 31, 2019 109,190 $ 3.68 Granted — $ — Exercised — $ — Forfeited — $ — Outstanding at September 30, 2020 109,190 $ 3.68 Vested at September 30, 2020 104,190 $ 3.64 Director Share Unit Transactions Director share units (" DiSUs”) are awarded to directors at the discretion of the Board of Directors. The DiSUs are fully vested on the grant date and each DiSU entitles the holder to receive one share of the Company’s common stock upon departure from the Company. The DiSUs fair value equaled the Company’s common stock fair value on the grant date. At September 30, 2020, there were 365,421 DiSUs outstanding. The Company granted 10,206 and 85,061 DiSUs during the nine months ended September 30, 2020 and 2019, respectively.

Asset Retirement Obligations

Asset Retirement Obligations	9 Months Ended
	Sep. 30, 2020
Asset Retirement Obligations
Asset Retirement Obligations	9. Asset Retirement Obligations The Company recorded accretion expense related to the asset retirement obligation (“ARO”) of $27 and $25 for the three months ended September 30, 2020 and 2019, respectively, and $82 and $76 for the nine months ended September 30, 2020 and 2019, respectively. The following table summarizes activity in the Company’s ARO: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Balance, beginning of period $ 1,494 $ 1,388 $ 1,439 $ 1,337 Accretion expense 27 25 82 76 Balance, end of period $ 1,521 $ 1,413 $ 1,521 $ 1,413 The Company is required to provide the applicable governmental agencies with financial assurances related to its closure and reclamation obligations. At September 30, 2020 and December 31, 2019, the Company had restricted cash in the form of a certificate of deposit totaling $275 as collateral for a letter of credit issued by a financial institution as security to a governmental agency for certain of the Company’s reclamation obligations.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2020
Fair Value Measurements
Fair Value Measurements	10. Fair Value Measurements The Company establishes a framework for measuring the fair value of financial assets and liabilities and nonfinancial assets and liabilities which are measured at fair value on a recurring (annual) basis in the form of a fair value hierarchy that prioritizes the inputs into valuation techniques used to measure fair value into three broad levels. This hierarchy gives the highest priority to unadjusted quoted prices in active markets and the lowest priority to unobservable inputs. Further, financial assets and liabilities should be classified by level in their entirety based upon the lowest level of input that was significant to the fair value measurement. The three levels of the fair value hierarchy are as follows: Level 1: Unadjusted quoted market prices in active markets for identical assets or liabilities that are accessible at the measurement date. Level 2: Quoted prices in inactive markets for identical assets or liabilities, quoted prices for similar assets or liabilities in active markets, or other observable inputs either directly related to the asset or liability or derived principally from corroborated observable market data. Level 3: Unobservable inputs due to the fact there is little or no market activity. This entails using assumptions in models which estimate what market participants would use in pricing the asset or liability. Financial Assets and Liabilities At September 30, 2020 and December 31, 2019, the Company’s financial instruments consist of cash and cash equivalents, restricted cash, receivables, accounts payable and other current liabilities. The carrying amounts of these financial instruments approximate fair value due to their short maturities. Non‑Financial Assets and Liabilities The Company discloses and recognizes its non‑financial assets and liabilities, such as ARO, at fair value on a non‑recurring basis. The estimated fair value for these non‑financial liabilities are classified as Level 3 of the fair value hierarchy, as the valuation was determined based on internally developed assumptions that market participants would use in the pricing of such assets without observable inputs and no market activity. The Company recorded its initial investment in affiliates at fair value. The estimated fair value for this non‑financial asset is classified as Level 3 of the fair value hierarchy, as the valuation was determined based on internally developed assumptions with few observable inputs and no market activity.

Commitments, Contingencies and

Commitments, Contingencies and Guarantees	9 Months Ended
	Sep. 30, 2020
Commitments, Contingencies and Guarantees
Commitments, Contingencies and Guarantees	11. Commitments, Contingencies and Guarantees In determining its accruals and disclosures with respect to loss contingencies, the Company will charge to income an estimated loss if information available prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. Legal expenses associated with the commitments and contingencies are expensed as incurred. If a loss contingency is not probable or reasonably estimable, disclosure of the loss contingency is made in the financial statements when it is at least reasonably possible that a material loss could be incurred. The Company’s mining and exploration activities are subject to various laws, regulations and permits governing the protection of the environment. These laws, regulations and permits are continually changing and are generally becoming more restrictive. The Company has made, and expects to make in the future, expenditures to comply with such laws, regulations and permits, but cannot predict the full amount of such future expenditures. In July 2017, the LGJV Entities entered into a loan agreement (the “Term Loan”) with Dowa whereby the LGJV Entities could borrow up to $210,000 for LGD development, with a maturity date of December 29, 2027. Interest on the Term Loan accrues daily at LIBOR plus 2.35%, with the interest to be added to the amount borrowed until commencement of production. During 2018, the LGJV paid Dowa a $4,200 closing fee. Commencing June 30, 2021, 14 consecutive semi‑annual equal payments of the aggregate principal and capitalized interest begin. The Company is required to pay an arrangement fee on the borrowing, calculated as 70%, of 1% of the outstanding principal balance, two business days prior to June 30 and December 31 each fiscal year until maturity, commencing after the initial drawdown which occurred in July 2018. The Term Loan also requires additional principal payments equal to 70% of excess cash flows (as defined). As of September 30, 2020, the LGJV had $222,783 outstanding under the Term Loan. On January 23, 2018, the LGJV entered into a loan agreement (the “Dowa MPR Loan”) with Dowa whereby the LGJV could borrow up to $65,700 to continue LGD development. Interest on this loan accrues daily at LIBOR plus 1.5% and is added to the amount borrowed. The amount borrowed plus accrued interest was due the earlier of June 30, 2019, or upon LGD’s substantial completion. If the Company’s 70% portion of the Dowa MPR Loan was not repaid in full on or before the due date, Dowa could elect to convert all or a portion of the principal amount into additional LGJV ownership at a favorable conversion rate. The Company contributed $18,200 to the LGJV in May 2019 to provide funding for a partial repayment of principal and interest related to the Dowa MPR Loan. In late May 2019, the Dowa MPR Loan was fully extinguished with a cash payment of $18,200 and the conversion of the remaining $50,737 of principal and interest. The conversion of the remaining principal and interest increased Dowa’s ownership in the LGJV entities to 48.5%. Due to the LGJV ownership dilution, the Company recognized a dilution loss on affiliates of $11,231 in May 2019. At September 30, 2020, the ownership of the LGJV entities is 51.5% the Company and 48.5% Dowa. The Company has until June 30, 2021 to repurchase the 18.5% interest for the Company’s unpaid portion of the Dowa MPR Loan amount, plus a 70% penalty and any Dowa holding costs of this incremental interest. On May 30, 2019, the LGJV entered into the WCF with Dowa whereby the LGJV could borrow up to $60,000 to fund the working capital and sustaining capital requirements of the LGD. Interest on this loan accrues daily at LIBOR plus 3.0% and all outstanding principal and interest matures on June 28, 2021. The Company is required to pay an arrangement fee on the borrowing, calculated as 15.0% per annum of 70.0% of the average daily principal amount outstanding under the WCF during such fiscal quarter. As of September 30, 2020, the LGJV had $60,000 outstanding under the WCF. The Company has guaranteed 70% of the outstanding principal and accrued interest of the Term Loan and the WCF in the event of default by the LGJV. The Company has guaranteed the payment of all obligations, including accrued interest, under the LGJV equipment loan agreements.

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 2020
Segment Information
Segment Information	12. Segment Information The Company operates in a single industry as a corporation engaged in the acquisition, exploration and development of silver mineral properties. The Company has mineral property interests in the U.S. and Mexico. The Company’s reportable segments are based on the Company’s mineral interests and management structure, and include the U.S., Mexico, and Corporate segments. The U.S. segment is improving the mining infrastructure, maintaining the Sunshine Complex facilities. The Mexico segment engages in the development and exploration on the Company’s Mexican mineral properties and includes the Company’s investment in its LGJV. Three Months Ended September 30, 2020 Three Months Ended September 30, 2019 U.S. Mexico Corporate Total U.S. Mexico Corporate Total Exploration $ 102 $ 134 $ — $ 236 $ 67 $ 319 $ — $ 386 Pre‑development 507 — — 507 561 — — 561 General and administrative 423 195 1,769 2,387 635 25 179 839 Amortization 588 — 7 594 585 104 8 697 Arrangement fees — — 764 764 — — 575 575 Interest expense — — 147 147 — — — — Foreign exchange loss — (2) — (2) — (6) — (6) Equity (income) loss in affiliates — (3,447) — (3,447) — 1,832 — 1,832 Dilution loss on affiliates — — — — — — — — Net other loss (income) (1) — — (1) (4) 33 (39) (10) Capital expenditures 22 — — 22 86 — — 86 Total assets 29,886 37,359 75,574 142,819 32,354 66,432 68,384 167,170 Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 U.S. Mexico Corporate Total U.S. Mexico Corporate Total Exploration $ 318 $ 516 $ — $ 834 $ 225 $ 688 $ — $ 913 Pre‑development 1,555 — — 1,555 1,700 1 — 1,701 General and administrative 1,300 447 3,897 5,644 1,683 216 1,629 3,528 Amortization 1,774 — 23 1,797 1,743 166 26 1,935 Arrangement fees — — 3,049 3,049 — — 1,470 1,470 Interest expense 1 — 189 190 — — — — Foreign exchange loss — 22 — 22 — — — — Equity loss in affiliates — 18,069 — 18,069 — 2,143 — 2,143 Dilution loss on affiliates — — — — — 11,231 — 11,231 Net other loss (income) (3) — (7) (10) (8) 31 (48) (25) Capital expenditures 22 — — 22 513 — — 513 Total assets 29,886 37,359 75,574 142,819 32,354 66,432 68,384 167,170

Investment in Affiliate

Investment in Affiliate	9 Months Ended
	Sep. 30, 2020
Investment in Affiliate
Investment in Affiliate	13. Investment in Affiliate During the three months ended September 30, 2020 and 2019, the Company recognized $3,447 of income and a $1,832 loss, respectively, on its investment in the LGJV Entities, representing its ownership share of the LGJV Entities' operational results. During the nine months ended September 30, 2020 and 2019, the Company recognized a $18,069 and $2,143 loss, respectively, on its investment in the LGJV Entities. The combined financial position and results of operations of the LGJV Entities as of September 30, 2020, and December 31, 2019 and for the nine months ended September 30, 2020 and 2019 are as follows: LOS GATOS JOINT VENTURE COMBINED BALANCE SHEETS (UNAUDITED) (in thousands) September 30, December 31, 2020 2019 ASSETS Current Assets Cash and cash equivalents $ 1,997 $ 1,302 Receivables 6,361 5,655 Inventories 10,697 11,374 VAT receivable 45,494 50,184 Other current assets 4,253 1,672 Total current assets 68,802 70,187 Non‑Current Assets Mine development, net 193,978 182,602 Property, plant and equipment, net 200,253 216,131 Total non‑current assets 394,231 398,733 Total Assets $ 463,033 $ 468,920 LIABILITIES AND OWNERS’ CAPITAL Current Liabilities Accounts payable and accrued liabilities $ 36,857 $ 43,287 Related party payable 935 6,875 Accrued interest 2,347 885 Unearned revenue 3,879 — Equipment loans 6,955 6,948 Total current liabilities 50,973 57,995 Non‑Current Liabilities Dowa Term Loan 219,382 217,796 Working Capital Facility 60,000 60,000 Equipment loans 7,656 12,916 Reclamation obligations 11,950 11,314 Total non‑current liabilities 298,988 302,026 Owners’ Capital Capital contributions 266,369 237,905 Paid‑in capital 13,685 7,400 Accumulated deficit (166,982) (136,406) Total owners’ capital 113,072 108,899 Total Liabilities and Owners’ Capital $ 463,033 $ 468,920 LOS GATOS JOINT VENTURE COMBINING STATEMENT OF LOSS (UNAUDITED) (in thousands) Nine Months Ended September 30, 2020 2019 Sales $ 81,181 $ 5,870 Expenses Cost of sales 45,496 3,392 Royalties 1,372 — Exploration 574 41 General and administrative 6,550 770 Depreciation, depletion and amortization 33,077 3,394 Other 3,416 — 90,485 7,597 Other (income) expense Interest expense 9,805 1,338 Arrangement fee 6,285 217 Accretion expense 636 592 Other (income) expense (109) 206 Foreign exchange loss (gain) 4,655 (101) 21,272 2,252 Net Loss $ (30,576) $ (3,979) For the nine months ended September 30, 2020, the Company contributed $5,148 to the LGJV in support of continued operations.

Other Current Assets (Tables)

Other Current Assets (Tables)	9 Months Ended
	Sep. 30, 2020
Other Current Assets
Schedule of components of other current assets	September 30, December 31, 2020 2019 Value added tax receivable $ 266 $ 213 Restricted cash 467 466 Prepaid expenses 367 359 Deposits and other 16 30 Total other current assets $ 1,116 $ 1,068

Property, Plant and Equipment_2

Property, Plant and Equipment, net (Tables)	9 Months Ended
	Sep. 30, 2020
Property, Plant and Equipment, net
Schedule of components of property, plant and equipment, net	September 30, December 31, 2020 2019 Mineral properties (1) $ 18,203 $ 18,203 Plant and equipment 13,643 13,621 Land 1,814 1,814 Buildings, infrastructure and improvements 16,798 16,798 Furniture, fixtures and computers 1,565 1,565 Property, plant and equipment at cost 52,023 52,001 Less accumulated amortization (23,605) (21,807) Property, plant and equipment, net $ 28,418 $ 30,194 (1) No amortization is currently being recognized on the Sunshine Mine mineral properties as the Company has not established proven and probable reserves, the mine has not yet been placed back in service, and there is no basis over which to amortize these costs.

Accounts Payable and Other Ac_2

Accounts Payable and Other Accrued Liabilities (Tables)	9 Months Ended
	Sep. 30, 2020
Accounts Payable and Other Accrued Liabilities
Schedule of components of accounts Payable and Other Current Liabilities	September 30, December 31, 2020 2019 Accounts payable $ 183 $ 270 Accrued expenses 2,542 1,724 Paycheck Protection Program loan 567 — Accrued compensation 1,482 1,471 Total accounts payable and other current liabilities $ 4,774 $ 3,465

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2020
Stockholders' Equity
Schedule of stock option activity	Weighted‑Average Exercise Director and Employee Options Shares Price Outstanding at December 31, 2019 7,102,361 $ 7.20 Granted 1,620,667 $ 6.00 Exercised — $ — Forfeited — $ — Outstanding at September 30, 2020 8,723,028 $ 6.97 Vested at September 30, 2020 5,925,062 $ 7.61 Weighted‑Average Exercise LGJV Personnel Options Shares Price Outstanding at December 31, 2019 109,190 $ 3.68 Granted — $ — Exercised — $ — Forfeited — $ — Outstanding at September 30, 2020 109,190 $ 3.68 Vested at September 30, 2020 104,190 $ 3.64

Asset Retirement Obligations (T

Asset Retirement Obligations (Tables)	9 Months Ended
	Sep. 30, 2020
Asset Retirement Obligations
Schedule of activity in the Company's ARO	Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Balance, beginning of period $ 1,494 $ 1,388 $ 1,439 $ 1,337 Accretion expense 27 25 82 76 Balance, end of period $ 1,521 $ 1,413 $ 1,521 $ 1,413

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2020
Segment Information
Schedule of segment information	Three Months Ended September 30, 2020 Three Months Ended September 30, 2019 U.S. Mexico Corporate Total U.S. Mexico Corporate Total Exploration $ 102 $ 134 $ — $ 236 $ 67 $ 319 $ — $ 386 Pre‑development 507 — — 507 561 — — 561 General and administrative 423 195 1,769 2,387 635 25 179 839 Amortization 588 — 7 594 585 104 8 697 Arrangement fees — — 764 764 — — 575 575 Interest expense — — 147 147 — — — — Foreign exchange loss — (2) — (2) — (6) — (6) Equity (income) loss in affiliates — (3,447) — (3,447) — 1,832 — 1,832 Dilution loss on affiliates — — — — — — — — Net other loss (income) (1) — — (1) (4) 33 (39) (10) Capital expenditures 22 — — 22 86 — — 86 Total assets 29,886 37,359 75,574 142,819 32,354 66,432 68,384 167,170 Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 U.S. Mexico Corporate Total U.S. Mexico Corporate Total Exploration $ 318 $ 516 $ — $ 834 $ 225 $ 688 $ — $ 913 Pre‑development 1,555 — — 1,555 1,700 1 — 1,701 General and administrative 1,300 447 3,897 5,644 1,683 216 1,629 3,528 Amortization 1,774 — 23 1,797 1,743 166 26 1,935 Arrangement fees — — 3,049 3,049 — — 1,470 1,470 Interest expense 1 — 189 190 — — — — Foreign exchange loss — 22 — 22 — — — — Equity loss in affiliates — 18,069 — 18,069 — 2,143 — 2,143 Dilution loss on affiliates — — — — — 11,231 — 11,231 Net other loss (income) (3) — (7) (10) (8) 31 (48) (25) Capital expenditures 22 — — 22 513 — — 513 Total assets 29,886 37,359 75,574 142,819 32,354 66,432 68,384 167,170

Investment in Affiliate (Tables

Investment in Affiliate (Tables) - Los Gatos Joint Venture ("LGJV")	9 Months Ended
	Sep. 30, 2020
Investment in Affiliate
Schedule of combined balance sheets	LOS GATOS JOINT VENTURE COMBINED BALANCE SHEETS (UNAUDITED) (in thousands) September 30, December 31, 2020 2019 ASSETS Current Assets Cash and cash equivalents $ 1,997 $ 1,302 Receivables 6,361 5,655 Inventories 10,697 11,374 VAT receivable 45,494 50,184 Other current assets 4,253 1,672 Total current assets 68,802 70,187 Non‑Current Assets Mine development, net 193,978 182,602 Property, plant and equipment, net 200,253 216,131 Total non‑current assets 394,231 398,733 Total Assets $ 463,033 $ 468,920 LIABILITIES AND OWNERS’ CAPITAL Current Liabilities Accounts payable and accrued liabilities $ 36,857 $ 43,287 Related party payable 935 6,875 Accrued interest 2,347 885 Unearned revenue 3,879 — Equipment loans 6,955 6,948 Total current liabilities 50,973 57,995 Non‑Current Liabilities Dowa Term Loan 219,382 217,796 Working Capital Facility 60,000 60,000 Equipment loans 7,656 12,916 Reclamation obligations 11,950 11,314 Total non‑current liabilities 298,988 302,026 Owners’ Capital Capital contributions 266,369 237,905 Paid‑in capital 13,685 7,400 Accumulated deficit (166,982) (136,406) Total owners’ capital 113,072 108,899 Total Liabilities and Owners’ Capital $ 463,033 $ 468,920
Schedule of combined results of operations	LOS GATOS JOINT VENTURE COMBINING STATEMENT OF LOSS (UNAUDITED) (in thousands) Nine Months Ended September 30, 2020 2019 Sales $ 81,181 $ 5,870 Expenses Cost of sales 45,496 3,392 Royalties 1,372 — Exploration 574 41 General and administrative 6,550 770 Depreciation, depletion and amortization 33,077 3,394 Other 3,416 — 90,485 7,597 Other (income) expense Interest expense 9,805 1,338 Arrangement fee 6,285 217 Accretion expense 636 592 Other (income) expense (109) 206 Foreign exchange loss (gain) 4,655 (101) 21,272 2,252 Net Loss $ (30,576) $ (3,979)

Description of Business and B_2

Description of Business and Basis of Preparation of Financial Statements (Details) $ / shares in Units, $ in Thousands	Nov. 10, 2020USD ($)$ / sharesshares	Oct. 30, 2020USD ($)$ / sharesshares	Sep. 01, 2019product	Sep. 30, 2019USD ($)	Sep. 30, 2020	May 31, 2019	Apr. 01, 2016USD ($)
Description of Business and Basis of Preparation of Financial Statements
Gross proceeds				$ 40,466
Initial public offering
Description of Business and Basis of Preparation of Financial Statements
Issuance of shares of common stock | shares		21,430,000
Issued price per share | $ / shares		$ 7
Gross proceeds		$ 150,010
Over-allotment option
Description of Business and Basis of Preparation of Financial Statements
Issuance of shares of common stock | shares	3,214,500
Issued price per share | $ / shares	$ 7
Gross proceeds	$ 22,502
Los Gatos Joint Venture ("LGJV")
Description of Business and Basis of Preparation of Financial Statements
Ownership interest (as a percent)					51.50%
Number of concentrate products | product			2
Dowa Metals and Mining Co., Ltd. ("Dowa") | Los Gatos Joint Venture ("LGJV")
Description of Business and Basis of Preparation of Financial Statements
Funding requirement made							$ 50,000
Ownership interest (as a percent)					48.50%	48.50%	30.00%

Other Current Assets (Details)

Other Current Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Other Current Assets
Value added tax receivable	$ 266	$ 213
Restricted cash	467	466
Prepaid expenses	367	359
Deposits and other	16	30
Total other current assets	1,116	1,068
Restricted cash in the form of a certificate of deposit	$ 275	$ 275

Property, Plant and Equipment_3

Property, Plant and Equipment, net (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Property, Plant and Equipment, net
Property, plant and equipment at cost	$ 52,023		$ 52,023		$ 52,001
Less accumulated amortization	(23,605)		(23,605)		(21,807)
Property, plant and equipment, net	28,418		28,418		30,194
Amortization expense	594	$ 697	1,797	$ 1,935
Mineral properties
Property, Plant and Equipment, net
Property, plant and equipment at cost	18,203		18,203		18,203
Sunshine Mine mineral properties
Property, Plant and Equipment, net
Amortization expense			0
Plant and equipment
Property, Plant and Equipment, net
Property, plant and equipment at cost	13,643		13,643		13,621
Land
Property, Plant and Equipment, net
Property, plant and equipment at cost	1,814		1,814		1,814
Buildings, infrastructure and improvements
Property, Plant and Equipment, net
Property, plant and equipment at cost	16,798		16,798		16,798
Furniture, fixtures and computers
Property, Plant and Equipment, net
Property, plant and equipment at cost	$ 1,565		$ 1,565		$ 1,565

Accounts Payable and Other Ac_3

Accounts Payable and Other Accrued Liabilities - Components (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Accounts Payable and Other Accrued Liabilities
Accounts payable	$ 183	$ 270
Accrued expenses	2,542	1,724
Paycheck Protection Program loan	567
Accrued compensation	1,482	1,471
Total accounts payable and other current liabilities	$ 4,774	$ 3,465

Accounts Payable and Other Ac_4

Accounts Payable and Other Accrued Liabilities - Paycheck Protection Program loan (Details) - Paycheck Protection Program ("PPP") loan - USD ($) $ in Thousands	1 Months Ended
	Apr. 30, 2020	Sep. 30, 2020
Accounts Payable and Other Accrued Liabilities
Loan proceeds	$ 567
Interest rate, percentage		1.00%

Related-Party Convertible Not_2

Related-Party Convertible Notes (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	9 Months Ended
	Oct. 31, 2020	Sep. 30, 2020	Jun. 30, 2020
Related-Party Convertible Notes
Amount outstanding		$ 15,000
Accrued interest		$ 187
Convertible note balance and interest incurred converted into shares		2,712,003
Interest settled in cash	$ 63
Electrum Silver US LLC
Related-Party Convertible Notes
Convertible note amount			$ 15,000
Convertible promissory note
Related-Party Convertible Notes
Annual interest rate (as a percent)		5.00%
Convertible promissory note | Electrum Silver US LLC
Related-Party Convertible Notes
Conversion price, percentage of share price in qualified financing (as a percent)		80.00%
Conversion price per share (in dollars per share)		$ 7.50
Amount outstanding		$ 15,000

Related-Party Transactions (Det

Related-Party Transactions (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Related-Party Transactions
Receivables from related party	$ 762		$ 6,422
Receivables converted into capital	5,850
Los Gatos Joint Venture ("LGJV")
Related-Party Transactions
Payments received from related party	300	$ 1,950
Receivables from related party	$ 600		$ 4,050

Stockholders' Equity - Stock Op

Stockholders' Equity - Stock Option Transactions (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Non-employee directors
Stockholders' Equity
Requisite service period for options	1 year
Options
Stockholders' Equity
Contractual term of options	10 years
Stock options granted (in shares)	1,620,667	1,253,000
Total unrecognized stock based compensation expense	$ 6,704
Total unrecognized stock based compensation expense, recognition period	1 year 10 months 24 days
Weighted-average grant-date fair value	$ 3.28	$ 3.69
Director and Employee Options
Stockholders' Equity
Stock options granted (in shares)	1,620,667
LGJV Personnel Options | Employees
Stockholders' Equity
Requisite service period for options	4 years

Stockholders' Equity - Stock _2

Stockholders' Equity - Stock option activity (Details)	9 Months Ended
	Sep. 30, 2020$ / sharesshares
Director and Employee Options
Shares
Outstanding at December 31, 2019 | shares	7,102,361
Granted | shares	1,620,667
Outstanding at September 30, 2020 | shares	8,723,028
Vested at September 30, 2020 | shares	5,925,062
Weighted-Average Exercise Price
Outstanding at December 31, 2019 | $ / shares	$ 7.20
Granted | $ / shares	6
Outstanding at September 30, 2020 | $ / shares	6.97
Vested at September 30, 2020 | $ / shares	$ 7.61
LGJV Personnel Options
Shares
Outstanding at December 31, 2019 | shares	109,190
Outstanding at September 30, 2020 | shares	109,190
Vested at September 30, 2020 | shares	104,190
Weighted-Average Exercise Price
Outstanding at December 31, 2019 | $ / shares	$ 3.68
Outstanding at September 30, 2020 | $ / shares	3.68
Vested at September 30, 2020 | $ / shares	$ 3.64

Stockholders' Equity - Director

Stockholders' Equity - Director Share Unit Transactions (Details) - Director Share Unit - shares	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Stockholders' Equity
Number of shares underlying that each unit entitles	1
Awards outstanding (in shares)	365,421
Awards granted (in shares)	10,206	85,061

Asset Retirement Obligations (D

Asset Retirement Obligations (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Activity in the Company's ARO
Balance, beginning of period	$ 1,494	$ 1,388	$ 1,439	$ 1,337
Accretion expense	27	25	82	76
Balance, end of period	1,521	$ 1,413	1,521	$ 1,413
Restricted cash held as collateral	467		467		$ 466
Certificate of deposit
Activity in the Company's ARO
Restricted cash held as collateral	$ 275		$ 275		$ 275

Commitments, Contingencies an_2

Commitments, Contingencies and Guarantees (Details) $ in Thousands	May 30, 2019USD ($)	Jan. 23, 2018USD ($)	May 31, 2019USD ($)	Jul. 31, 2017USD ($)D	Sep. 30, 2020USD ($)payment	Sep. 30, 2019USD ($)	Apr. 01, 2016
Commitments, Contingencies and Guarantees
Dilution loss on affiliates						$ 11,231
Los Gatos Joint Venture ("LGJV")
Commitments, Contingencies and Guarantees
Funding contributed for a partial repayment of loan			$ 18,200
Ownership interest (as a percent)					51.50%
Dilution loss on affiliates			11,231
Ownership interest to be repurchased on or before June 30, 2021 (as a percent)					18.50%
Los Gatos Joint Venture ("LGJV") | Dowa Metals and Mining Co., Ltd. ("Dowa") | Term loan
Commitments, Contingencies and Guarantees
Maximum borrowing capacity				$ 210,000
Payments for closing fees				$ 4,200
Number of consecutive semi annual equal payments commencing June 30, 2021 | payment					14
Arrangement fee (as a percent)				70.00%
Arrangement fee, percentage of outstanding principal balance considered (as a percent)				1.00%
Arrangement fee payment, number of business days | D				2
Percentage of excess cash flow used to determine amount of additional payments				70.00%
Outstanding balance					$ 222,783
Percentage of loan guaranteed by the company	70.00%
Los Gatos Joint Venture ("LGJV") | Dowa Metals and Mining Co., Ltd. ("Dowa") | Term loan | LIBOR
Commitments, Contingencies and Guarantees
Basis spread on variable rate (as a percent)				2.35%
Los Gatos Joint Venture ("LGJV") | Dowa Metals and Mining Co., Ltd. ("Dowa") | Dowa MPR Loan
Commitments, Contingencies and Guarantees
Maximum borrowing capacity		$ 65,700
Percentage of the joint venture loan for which the Company is responsible		70.00%
Payments for extinguishment of debt			18,200
Principal and interest converted			$ 50,737
Penalty on debt (as a percent)					70.00%
Los Gatos Joint Venture ("LGJV") | Dowa Metals and Mining Co., Ltd. ("Dowa") | Dowa MPR Loan | LIBOR
Commitments, Contingencies and Guarantees
Basis spread on variable rate (as a percent)		1.50%
Los Gatos Joint Venture ("LGJV") | Dowa Metals and Mining Co., Ltd. ("Dowa") | Working capital facility agreement
Commitments, Contingencies and Guarantees
Maximum borrowing capacity	$ 60,000
Arrangement fee (as a percent)	15.00%
Outstanding balance					$ 60,000
Arrangement fee, Percentage of the average daily principal amount outstanding considered (as a percent)	70.00%
Percentage of loan guaranteed by the company	70.00%
Los Gatos Joint Venture ("LGJV") | Dowa Metals and Mining Co., Ltd. ("Dowa") | Working capital facility agreement | LIBOR
Commitments, Contingencies and Guarantees
Basis spread on variable rate (as a percent)	3.00%
Dowa Metals and Mining Co., Ltd. ("Dowa") | Los Gatos Joint Venture ("LGJV")
Commitments, Contingencies and Guarantees
Ownership interest (as a percent)			48.50%		48.50%		30.00%

Segment Information (Details)

Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Segment Information
Exploration	$ 236	$ 386	$ 834	$ 913
Pre-development	507	561	1,555	1,701
General and administrative	2,387	839	5,644	3,528
Amortization	594	697	1,797	1,935
Arrangement fees	764	575	3,049	1,470
Interest Expense	147		190
Foreign exchange loss	(2)	(6)	22
Equity (income) loss in affiliates	(3,447)	1,832	18,069	2,143
Dilution loss on affiliates				11,231
Net other loss (income)	(1)	(10)	(10)	(25)
Capital expenditures	22	86	22	513
Total Assets	142,819	167,170	142,819	167,170	$ 154,295
U.S.
Segment Information
Exploration	102	67	318	225
Pre-development	507	561	1,555	1,700
General and administrative	423	635	1,300	1,683
Amortization	588	585	1,774	1,743
Interest Expense			1
Net other loss (income)	(1)	(4)	(3)	(8)
Capital expenditures	22	86	22	513
Total Assets	29,886	32,354	29,886	32,354
Mexico
Segment Information
Exploration	134	319	516	688
Pre-development				1
General and administrative	195	25	447	216
Amortization		104		166
Foreign exchange loss	(2)	(6)	22
Equity (income) loss in affiliates	(3,447)	1,832	18,069	2,143
Dilution loss on affiliates				11,231
Net other loss (income)		33		31
Total Assets	37,359	66,432	37,359	66,432
Corporate
Segment Information
General and administrative	1,769	179	3,897	1,629
Amortization	7	8	23	26
Arrangement fees	764	575	3,049	1,470
Interest Expense	147		189
Net other loss (income)		(39)	(7)	(48)
Total Assets	$ 75,574	$ 68,384	$ 75,574	$ 68,384

Investment in Affiliate - Combi

Investment in Affiliate - Combined Balance Sheets (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019	Sep. 30, 2019
Current Assets
Cash and cash equivalents	$ 3,627	$ 9,085
VAT receivable	266	213
Other current assets	1,116	1,068
Total current assets	8,992	18,455
Non-Current Assets
Property, plant and equipment, net	28,418	30,194
Total Assets	142,819	154,295	$ 167,170
Non-Current Liabilities
Reclamation obligations	1,521	1,439
Owners' Capital
Paid-in capital	379,204	375,921
Accumulated deficit	(256,733)	(225,583)
Total shareholders' equity	121,524	149,391
Total Liabilities and Shareholders' Equity	142,819	154,295
Los Gatos Joint Venture ("LGJV")
Current Assets
Cash and cash equivalents	1,997	1,302
Receivables	6,361	5,655
Inventories	10,697	11,374
VAT receivable	45,494	50,184
Other current assets	4,253	1,672
Total current assets	68,802	70,187
Non-Current Assets
Mine development, net	193,978	182,602
Property, plant and equipment, net	200,253	216,131
Total noncurrent assets	394,231	398,733
Total Assets	463,033	468,920
Current Liabilities
Accounts payable and accrued liabilities	36,857	43,287
Related party payable	935	6,875
Accrued interest	2,347	885
Unearned revenue	3,879
Equipment loans	6,955	6,948
Total current liabilities	50,973	57,995
Non-Current Liabilities
Dowa Term Loan	219,382	217,796
Working Capital Facility	60,000	60,000
Equipment loans	7,656	12,916
Reclamation obligations	11,950	11,314
Total noncurrent liabilities	298,988	302,026
Owners' Capital
Capital contributions	266,369	237,905
Paid-in capital	13,685	7,400
Accumulated deficit	(166,982)	(136,406)
Total shareholders' equity	113,072	108,899
Total Liabilities and Shareholders' Equity	$ 463,033	$ 468,920

Investment in Affiliate - Com_2

Investment in Affiliate - Combining Statement Of Income (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2020	Sep. 30, 2019
Expenses
Exploration	$ 236			$ 386			$ 834	$ 913
General and administrative	2,387			839			5,644	3,528
Total expenses	3,724			2,483			9,830	8,077
Other (income) expense
Interest expense	147						190
Arrangement fee	764			575			3,049	1,470
Other (income) expense	(1)			(10)			(10)	(25)
Foreign exchange loss	(2)			(6)			22
Net loss	$ (1,185)	$ (12,144)	$ (17,821)	$ (4,874)	$ (15,619)	$ (2,403)	(31,150)	(22,896)
Los Gatos Joint Venture ("LGJV")
Investment in Affiliate
Sales							81,181	5,870
Expenses
Cost of sales							45,496	3,392
Royalties							1,372
Exploration							574	41
General and administrative							6,550	770
Depreciation, depletion and amortization							33,077	3,394
Other							3,416
Total expenses							90,485	7,597
Other (income) expense
Interest expense							9,805	1,338
Arrangement fee							6,285	217
Accretion expense							636	592
Other (income) expense							(109)	206
Foreign exchange loss							4,655	(101)
Other (income) expense							21,272	2,252
Net loss							$ (30,576)	$ (3,979)

Investment in Affiliate - Other

Investment in Affiliate - Other disclosures (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Investment in Affiliate
Equity (income) loss in affiliates	$ (3,447)	$ 1,832	$ 18,069	$ 2,143
Los Gatos Joint Venture ("LGJV")
Investment in Affiliate
Equity (income) loss in affiliates	(3,447)	$ 1,832	18,069	$ 2,143
Advances to the joint venture	$ 5,148		$ 5,148