Gatos Silver (GATO) 10-K 29 Mar 21 2020 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2020	Mar. 23, 2021
Document and Entity Information [Abstract]
Document Type	10-K
Document Period End Date	Dec. 31, 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 Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
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 Public Float		$ 326,610,768
Entity Common Stock, Shares Outstanding		59,409,052
Entity Central Index Key	0001517006
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands		Dec. 31, 2020	Dec. 31, 2019
Current Assets
Cash and cash equivalents		$ 150,146	$ 8,581
Deferred financing costs			1,777
Related party receivables		1,727	6,422
Other current assets		3,879	552
Current assets of discontinued operations			1,123
Total current assets		155,752	18,455
Non-Current Assets
Investment in affiliates		109,597	105,396
Property, plant and equipment, net of accumulated depreciation of $948 and $917, respectively		61	92
Non-current assets of discontinued operations			30,352
Total Assets		265,410	154,295
Current Liabilities
Accounts payable and other accrued liabilities		4,024	2,817
Current liabilities of discontinued operations			648
Total current liabilities		4,024	3,465
Non-Current Liabilities
Non-current liabilities of discontinued operations			1,439
Shareholders' Equity
Common Stock, $0.001 par value; 700,000,000 shares authorized; 59,183,076 and 40,323,430 shares outstanding as of December 31, 2020 and December 31, 2019 (1)	[1]	108	80
Paid-in capital		409,728	375,921
Accumulated deficit		(147,423)	(225,583)
Treasury stock, at cost, 144,589 shares as of December 31, 2020 and December 31, 2019 (1)	[1]	(1,027)	(1,027)
Total shareholders' equity		261,386	149,391
Total Liabilities and shareholders' equity		$ 265,410	$ 154,295
[1]	Prior period results have been adjusted to reflect the two-for-one reverse split in October 2020. See Note 1, Description of Business for details.

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) $ in Thousands	Dec. 31, 2020USD ($)$ / sharesshares	Dec. 31, 2019USD ($)$ / sharesshares
CONSOLIDATED BALANCE SHEETS
Accumulated depreciation | $	$ 948	$ 917
Common stock, par value | $ / shares	$ 0.001	$ 0.001
Common stock, shares authorized	700,000,000	700,000,000
Common stock, shares outstanding	59,183,076	40,323,430
Treasury stock, shares	144,589	144,589

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2020	Dec. 31, 2019
Expenses
Exploration		$ 785	$ 923
General and administrative		7,765	2,903
Amortization		30	34
Total expenses		8,580	3,860
Other expense (income)
Dilution loss in affiliates			11,231
Equity loss in affiliates		17,585	12,865
Arrangement fees		4,843	2,988
Interest expense		4,047
Other income		(28)	(36)
Net other expense		26,447	27,048
Net loss from continuing operations		35,027	30,908
Loss from discontinued operations		5,414	6,910
Net loss		40,441	37,818
Other comprehensive (gain) loss
Unrealized gain on securities, net of tax, from discontinued operations			(32)
Comprehensive loss from continuing operations		35,027	30,908
Comprehensive loss from discontinued operations		5,414	6,878
Comprehensive loss		$ 40,441	$ 37,786
Net loss per share:
From continuing operations, basic and diluted (1)	[1]	$ 0.80	$ 0.79
From discontinued operations, basic and diluted (1)		0.13	0.18
Basic and diluted (1)	[1]	$ 0.93	$ 0.97
Weighted average shares outstanding:
Basic and diluted (1)	[1]	43,655,601	38,967,038
[1]	Prior period results have been adjusted to reflect the two-for-one reverse split in October 2020. See Note 1, Description of Business for details.

CONSOLIDATED STATEMENTS OF OP_2

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Parenthetical)	Oct. 30, 2020
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
Reverse stock split ratio	0.5

CONSOLIDATED STATEMENTS OF SHAR

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Thousands		Common Stock	Treasury Stock	Paid-in Capital	Accumulated Deficit	Other Comprehensive Income (Loss)	Total
Balance at Dec. 31, 2018		$ 74	$ (1,027)	$ 331,802	$ (187,765)	$ (32)	$ 143,052
Balance (in shares) at Dec. 31, 2018	[1]	36,951,274	144,589
Issuance of common stock		$ 6		40,459			40,465
Issuance of common stock (in shares)	[1]	3,372,156
Stock-based compensation				3,219			3,219
Unrealized gain on securities, net of tax, from discontinued operations						$ 32	32
Deferred share unit compensation				491			491
Other				(50)			(50)
Net loss					(37,818)		(37,818)
Balance at Dec. 31, 2019		$ 80	$ (1,027)	375,921	(225,583)		149,391
Balance (in shares) at Dec. 31, 2019	[1]	40,323,430	144,589
Issuance of common stock		$ 25		155,612			155,637
Issuance of common stock (in shares)	[1]	24,644,500
Stock-based compensation				4,563			4,563
Convertible note conversion		$ 3		18,981			18,984
Convertible note conversion (In shares)	[1]	2,712,003
Deferred salary conversion				329			329
Deferred salary conversion (in shares)	[1]	47,061
Deferred share unit compensation				61			61
Distribution from Reorganization				(145,780)	118,601		(27,179)
Distribution from Reorganization (in shares)	[1]	(8,543,918)
Other				41			41
Net loss					(40,441)		(40,441)
Balance at Dec. 31, 2020		$ 108	$ (1,027)	$ 409,728	$ (147,423)		$ 261,386
Balance (in shares) at Dec. 31, 2020	[1]	59,183,076	144,589
[1]	Prior period results have been adjusted to reflect the two-for-one reverse split in October 2020. See Note 1, Description of Business for details.

CONSOLIDATED STATEMENTS OF SH_2

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (DEFICIT) (Parenthetical)	Oct. 30, 2020
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (DEFICIT)
Reverse stock split ratio	0.5

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
OPERATING ACTIVITIES
Net loss	$ (40,441)	$ (37,818)
Plus net loss from discontinued operations	5,414	6,910
Adjustments to reconcile net loss to net cash used by operating activities:
Amortization	30	34
Dilution loss in affiliates		11,231
Stock compensation expense	4,368	3,007
Equity loss in affiliates	17,585	12,865
Interest expense on convertible notes beneficial conversion terms	3,984
Other	329
Changes in operating assets and liabilities:
Receivables from relatedparty	(4,752)	(5,078)
Accounts payable and other accrued liabilities	2,027	549
Other current assets	(3,479)	22
Operating cash flows from discontinued operations	(3,453)	(4,017)
Net cash used by operating activities	(18,388)	(12,295)
INVESTING ACTIVITIES
Transfers of restricted cash to cash	151
Investment in affiliates	(12,298)	(21,371)
Investing cash flows from discontinued operations	18	(534)
Net cash used by investing activities	(12,129)	(21,905)
FINANCING ACTIVITIES
Issuance of common stock	160,436	40,465
Relatedparty convertible notes	15,000
Deferred financing costs	(4,039)	(637)
Other	260
Financing cash flows from discontinued operations	807
Net cash provided by financing activities	172,464	39,828
Net increase in cash and cash equivalents	141,947	5,628
Cash and cash equivalents, beginning of period	9,085	3,457
Cash and cash equivalents, end of period	151,032	9,085
Less cash of discontinued operations	886	504
Cash of continuing operations, end of period	150,146	8,581
Supplemental disclosure of noncash transactions:
Director Compensation	61	491
Deferred financing costs included in accrued liabilities		$ 1,132
Conversion of related party receivable into investment in affiliate	9,448
Conversion of convertible notes to equity	15,000
Deferred financing costs included in accounts payable and accrued liabilities	1,118
Underwriting fees recorded to deferred financing costs	(12,076)
Deferred financing costs charged to equity	$ 16,874

Description of Business

Description of Business	12 Months Ended
	Dec. 31, 2020
Description of Business
Description of Business	1. Description of Business Organization and Nature of Business Gatos Silver, Inc. (“Gatos Silver” or “the Company”) is a silver dominant production, development and exploration, company that discovered a new silver and zinc-rich mineral district in southern Chihuahua State, Mexico. The Company’s primary 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 by 18.5% to 48.5% through the conversion of the Dowa MPR Loan to equity. On March 11, 2021, the Company repurchased the 18.5% interest from Dowa. See Note 10 - Commitment, Contingencies and Guarantees for further discussion. The LGJV ownership is currently 70% Gatos Silver and 30% Dowa. Despite owning the majority interest in the LGJV, the Company does not exercise control over the LGJV due to certain provisions contained in the Unanimous Omnibus Partner Agreement that currently require unanimous partner approval of all major operating decisions. 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 suspension of all non‑essential activities. 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 CLG, as well as continuing definitional and exploratory drilling at the nearby Esther deposit. On December 5, 2020, the LGJV began drilling the first program, an infill and extensional drilling program at the Cerro Los Gatos deposit. 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. ("MLS"). Discontinued Operations - 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. In conjunction with the Company's initial public offering (" IPO”), all equity interest in the Company’s wholly-owned subsidiary, SOP, who holds an interest in the Sunshine Complex, was distributed to its stockholders, creating Silver Opportunity Partners Corporation, which subsequently was renamed Sunshine Silver Mining & Refining Corporation, and is presented as discontinued operations in the Company’s consolidated financial statements for the years ended December 31, 2020 and 2019. Pursuant to the distribution and discontinued operations presentation, certain costs, assets and liabilities are removed from the consolidated financial statements, including but not limited to, mineral properties, property, plant and equipment and asset retirement obligation. See Note 12 - Discontinued Operations for further discussion. Initial Public Offering and Reorganization On October 30, 2020, the Company completed an IPO of 21,430,000 shares of its common stock at a price of $7.00 per share, resulting in gross proceeds from the IPO of $150,010 and its 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. The Company received net proceeds of approximately $155,750 thousand from these issuances of common stock, after deducting underwriting discounts and commissions and expenses payable by us. In conjunction with the IPO, we effected a reorganization (the "Reorganization") in which (i) the Company changed its name from Sunshine Silver Mining & Refining Corporation to Gatos Silver, Inc., (ii) Silver Opportunity Partners LLC , which held the Company’s interest in the Sunshine Complex in Idaho, comprised of the Sunshine Mine and the Sunshine Big Creek Refinery, became a wholly owned subsidiary of a newly created Delaware corporation named Silver Opportunity Partners Corporation ("SOP"), (iii) all equity interest in SOP was distributed to its shareholders, and (iv) each share of the Company's common stock was split at a ratio of two-for-one (the "Reverse Split"). The Reverse Split did not have any effect on the stated par value of the Company's common stock and the rights and privileges of the holders of shares of Common Stock were unaffected. All common stock and options outstanding immediately prior to the Reverse Split were appropriately adjusted by dividing the number of shares of common stock into which the options are exercisable or convertible by two and multiplying the exercise or conversion price thereof by two.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2020
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Basis of Consolidation and Presentation The accompanying consolidated financial statements of the Company have been prepared in accordance with United States Generally Accepted Accounting Principles (“GAAP”) and include the accounts of Gatos Silver and MLS. All Company subsidiaries are consolidated. All significant intercompany balances and transactions have been eliminated. All equity interest in the Company’s wholly-owned subsidiary, SOP, was distributed to its stockholders in October 2020. The accounts for SOP have been presented as discontinued operations in the accompanying consolidated financial statements. Prior year amounts have also been modified in these financial statements to properly report amounts under current operations and discontinued operations. See Note 12 – Discontinued Operations for further discussion. All common stock shares, options and deferred stock units amounts and prices in the consolidated financial statements have been adjusted for the Reverse Split. Equity method investment The Company accounts for its investment in affiliates using the equity method of accounting whereby, after valuing the initial investment, the Company recognizes its proportional share of results of operations of the affiliate in its consolidated financial statements. Equity method investments are reviewed periodically for other-than-temporary decline in value. The Company’s investment in the LGJV Entities is presented as Investment in affiliates in the consolidated balance sheet. The basis difference between the carrying amount of the investment in affiliates and the Company’s equity in the LGJV Entities’ net assets is due to value of the LGJV mineral resources. This basis difference is amortized on a units of production basis as the mineral resource is produced. The Company incurs certain costs on behalf of the LGJV, primarily related to a project development loan arrangement fee. The Company’s proportional share of such costs are reported as an investment in affiliate and the residual costs, related to Dowa’s proportional ownership, are reported in the statement of loss as arrangement fees. Use of estimates The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include mineral properties; environmental reclamation and closure obligations; valuation of stock and stock options; valuation allowances for deferred tax assets; and the fair value of financial instruments. Functional currency and translation of foreign currencies The U.S. dollar is the functional currency of the Company and its subsidiaries. Monetary assets and liabilities denominated in foreign currencies are translated to U.S. dollars at exchange rates in effect at the balance sheet date, with the resulting gains or losses reported in foreign exchange (gain) loss in the statement of operations and comprehensive loss. Non-monetary assets and liabilities are translated at historical exchange rates. Expenses and income items denominated in foreign currencies are translated into U.S. dollars at historical exchange rates. Cash and cash equivalents The Company considers all highly liquid short-term investments with a maturity of three months or less when purchased to be cash equivalents. Restricted cash, included in other current assets, consists of cash and investments held as collateral for a letter of credit and other extensions of credit. Property, plant and equipment Property, plant and equipment are recorded at cost. Amortization of plant and equipment is calculated on the straight-line method over the estimated useful lives of the assets. The estimated useful lives of furniture, fixtures and computers range from three to 10 years. Impairment of long-lived assets Long-lived assets, such as property, plant and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. If circumstances require a long-lived asset or asset group to be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. There were no impairments recognized for the years ended December 31, 2020 and 2019. Stock-based compensation The Company recognizes all employee stock-based compensation as a cost in the consolidated financial statements. Equity-classified awards are measured at the grant date fair value of the award. The Company estimates grant date fair value using the Black-Scholes option-pricing model using the grant date share price, estimated amounts for volatility of the Company’s stock based on the historical volatility of a group of peer companies' common stock over the expected option life, the expected life of the awards, the fair value of the underlying shares, the risk-free interest rate and the expected dividend yield. The Company estimates forfeitures of stock-based awards based on historical data and periodically adjusts the forfeiture rate. The adjustment of the forfeiture rate is recorded as a cumulative adjustment in the period the forfeiture estimate is changed. Stock-based compensation expense is included as a component of either exploration or general and administrative expense over the requisite service period of the award. Net loss per share Basic and diluted loss per share are computed by dividing the net loss available to common stockholders by the weighted-average number of common stock shares outstanding, including deferred stock units (“DSUs”), for the respective period presented. For the years ended December 31, 2020 and 2019, stock options have been excluded from the dilutive earnings per share calculation as their effect would be anti-dilutive. Income taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. Recently issued accounting standards In February 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842), which will require lessees to recognize assets and liabilities for the rights and obligations created by most leases on the balance sheet. These changes become effective for the Company’s fiscal year beginning January 1, 2022. The Company is still assessing the impact of the standard but does not expect there will be a material impact to the Company’s financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740) to simplify and enhance accounting for income taxes. This update is effective in fiscal years, beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022, and early adoption is permitted. The Company is still assessing the impact of the standard but does not expect there will be a material impact to the Company’s financial statements.

Other Current Assets

Other Current Assets	12 Months Ended
	Dec. 31, 2020
Other Current Assets
Other Current Assets	3. Other Current Assets December 31, December 31, 2020 2019 Value added tax receivable $ 318 $ 213 Restricted cash — 151 Prepaid expenses 3,560 157 Deposits and other 1 31 Total other current assets $ 3,879 $ 552

Property, Plant and Equipment,

Property, Plant and Equipment, net	12 Months Ended
	Dec. 31, 2020
Property, Plant and Equipment, net
Property, Plant and Equipment, net	4. Property, Plant and Equipment, net Mineral Properties Mining Concessions In Mexico, mineral concessions from the Mexican government can only be held by Mexican nationals or Mexican-incorporated companies. The concessions are valid for 50 years and are extendable provided the concessions are kept in good standing. For concessions to remain in good standing a semi-annual fee must be paid to the Mexican government and an annual report describing the work accomplished on the property must be filed. These concessions may be cancelled without penalty with prior notice to the Mexican government. MLS is the concession holder of a series of claims titles granted by the Mexican government. The rights to certain concessions are held through exploration agreements with purchase options, as discussed below: Santa Valeria Concession The Company was required to make monthly payments through 2020 to continue exploration activities and obtain ownership of the Santa Valeria concessions, and is required to make a production royalty payment of 1% of the net smelter returns on production. The Company may terminate the agreement upon prior notice. The Company made mineral lease payments of $414 and $409 for the years ended December 31, 2020 and 2019, respectively.

Accounts Payable and Other Accr

Accounts Payable and Other Accrued Liabilities	12 Months Ended
	Dec. 31, 2020
Accounts Payable and Other Accrued Liabilities
Accounts Payable and Other Accrued Liabilities	5. Accounts Payable and Other Accrued Liabilities December 31, December 31, 2020 2019 Accounts payable $ 560 $ 60 Accrued expenses 1,240 1,488 Accrued compensation 1,964 1,269 Other 260 — Total accounts payable and other accrued liabilities $ 4,024 $ 2,817

Related-Party Convertible Notes

Related-Party Convertible Notes	12 Months Ended
	Dec. 31, 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 notes incur an annual interest of 5%. On October 30, 2020, the outstanding $15,000 in convertible notes and $187 in accrued interest were converted into 2,712,003 shares of common stock of the Company as a result of the IPO in accordance with the conversion terms, and the Company incurred non-cash interest expense of $3,984.

Related-Party Transactions

Related-Party Transactions	12 Months Ended
	Dec. 31, 2020
Related-Party Transactions
Related-Party Transactions	7. Related‑Party Transactions Service Agreement The Company has a services agreement with the LGJV to provide certain consulting and administrative services. The Company earned $3,900 and $5,100 under this agreement for the years ended December 31, 2020 and 2019, respectively, and received $766 and $1,950 in cash from the LGJV under this agreement for the years ended December 31, 2020 and 2019, respectively. The Company had receivables under this agreement of $1,200 and $4,050 as of December 31, 2020 and 2019, respectively. The Company also incurs certain LGJV costs that are subsequently reimbursed by the LGJV. During the year ended December 31, 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, increasing Investment in Affiliates. Management Services Agreement Upon completion of the IPO, the Company entered into a Management Services Agreement with SOP, pursuant to which the Company provides certain executive and managerial advisory services to SOP until terminated by either party. SOP reimburses the Company for costs of such services. The Company earned $41 from SOP under this agreement in 2020, all of which was receivable as of December 31, 2020.

Stockholders' Equity

Stockholders' Equity	12 Months Ended
	Dec. 31, 2020
Stockholders' Equity
Stockholders' Equity	8. Stockholders’ Equity The Company is authorized to issue 700,000,000 shares of $0.001 par value common stock and 50,000,000 shares of $0.001 par value preferred stock. As of December 31, 2020, 59,183,076 shares of common stock are outstanding, and no shares of preferred stock are outstanding. Common Stock Transactions During October 2020 in connection with the Reorganization, each share of common stock was exchanged for approximately 0.39406 shares of the Company’s common stock (subject to rounding to eliminate fractional shares). In October 2020, the Company completed an IPO of 21,430,000 common stock shares, and in November 2020, the Company issued an additional 3,214,500 common stock shares through the underwriters’ over-allotment option, each at $7.00 per share raising an aggregate of $172,512. Underwriting fees incurred in conjunction with the IPO and issuance of additional common stock are recorded as a reduction to Paid-in Capital. In October 2020, the Company also issued 47,061 common stock shares to executive officers for deferred salary compensation incurred in 2020 and converted the outstanding convertible notes into 2,712,003 common stock shares, each at $7.00 per share. During May 2019, the Company issued 2,083,334 common stock shares at $12.00 per share raising $25,000 in a private placement. During June 2019, the Company issued 38,822 common stock shares at $12.00 per share raising $465 in a private placement. During July 2019, the Company issued 1,250,000 common stock shares at $12.00 per share raising $15,000 in a private placement. Equity Compensation Plan The Company has a Long-Term Incentive Plan under which options and shares of the Company’s common stock are authorized for grant or issuance as compensation to eligible employees, consultants, and members of the Board of Directors. Awards under the plan include stock options, stock appreciation rights, stock awards, deferred stock units, and performance awards. Stock options and deferred stock units have been granted by the Company in different periods. As of December 31, 2020, approximately 9.4 million shares of common stock were available for grant under the plan. Stock-based compensation expense for the years ended December 31, 2020 and 2019 was $4,368 and $3,007, respectively. Stock Option Transactions The Company’s stock options have a contractual term of 10 years and entitle the holder to purchase one share of the Company’s common stock. The options granted to the Company's employees and LGJV personnel prior to 2020 have a requisite service period of four years and vest in equal annual installments. Starting in 2020, the options granted to the Company's employees and LGJV personnel have a requisite service period of three years. The options granted to non‑employee directors prior to 2020 have a requisite service period of one year and vest in equal monthly installments. The options granted to non-employee directors in January 2020 have a requisite service period of one and a half years and vest in monthly installments. On December 31, 2020, there was $9,377 of unrecognized stock‑based compensation expense which is expected to be recognized over a weighted-average period of 2.2 years. The following table summarizes the respective vesting start dates and number of options granted to employees and directors in 2020 and 2019: Recipient Options Granted Vesting Start Date Grant Date Employees 508,500 December 14, 2018 May 3, 2019 Directors 93,000 December 14, 2018 May 3, 2019 Employees 416,000 January 20, 2020 January 20, 2020 Directors 197,666 January 20, 2020 January 20, 2020 Employees 164,000 January 20, 2020 January 30, 2020 Directors 20,667 March 1, 2020 March 1, 2020 Employees 12,000 July 31, 2020 July 31, 2020 Employees 1,127,500 October 27, 2020 October 27, 2020 The following assumptions were used to compute the fair value of the options granted using the Black-Scholes option valuation model: Grant Date May 2019 Jan. 2020 Mar. 2020 Jul. 2020 Oct. 2020 Risk-free interest rate % % % % % Dividend yield — — — — — Estimated volatility % % % % % Expected option life 6 years 6 years 6 years 6 years 6 years Post-Reorganization, the weighted‑average grant date fair value per share was $5.65 and $7.00 for the years ended December 31, 2020 and 2019, respectively. The following assumptions were used to compute the fair value of the LGJV Personnel options using the Black-Scholes option valuation model as of December 31, 2020 and 2019: December 31, 2020 2019 Risk-free interest rate % % Dividend yield — — Estimated volatility % 63.60 % Expected option life 6 years 6 years The Company's estimated volatility computation was based on the historical volatility of a group of peer companies' common stock over the expected option life and included both exploration stage and development stage companies. The peer information was used because the Company was not publicly traded and therefore did not have the market trading history required to calculate a meaningful volatility factor. The computation of the expected option life was determined based on a reasonable expectation of the option life prior to being exercised or forfeited. The risk-free interest rate assumption was based on the U.S. Treasury constant maturity yield at the date of the grant over the expected life of the option. No dividends are expected to be paid. The following tables summarize the stock option activity for the years ended December 31, 2020: Weighted‑Average Aggregate Weighted‑Average Exercise Intrinsic Remaining Employee & Director Options Shares Price Value Life (Years) Outstanding at December 31, 2019 3,551,186 $ Granted 1,937,833 $ Exercised — $ — Forfeited (77,089) $ Outstanding at December 31, 2020 5,411,930 $ $ 17,516 Vested at December 31, 2020 3,251,211 $ $ 9,292 Weighted‑Average Aggregate Weighted‑Average Exercise Intrinsic Remaining LGJV Personnel Options Shares Price Value Life (Years) Outstanding at December 31, 2019 54,595 $ Granted — $ — Exercised — $ — Forfeited (10,919) $ Outstanding at December 31, 2020 43,676 $ $ 253 Vested at December 31, 2020 43,676 $ $ 253 Deferred Stock Unit Transactions Deferred stock units (“DSUs”) are awarded to directors at the discretion of the Board of Directors. The DSUs are fully vested on the grant date and each DSU entitles the holder to receive one share of the Company’s common stock upon departure from the Company. The fair value of DSUs are equal to the fair value of the Company’s common stock on the grant date. On January 20, 2020, the Company granted 5,103 DSUs to Directors as compensation for director fees from October 2019 through December 2019. At December 31, 2020 and 2019, there were 182,714 and 177,611 DSUs outstanding, respectively.

Fair Value Measurements

Fair Value Measurements	12 Months Ended
	Dec. 31, 2020
Fair Value Measurements
Fair Value Measurements	9. 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 December 31, 2020 and 2019, the Company’s other financial instruments consist of cash and cash equivalents, 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 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	12 Months Ended
	Dec. 31, 2020
Commitments, Contingencies and Guarantees
Commitments, Contingencies and Guarantees	10. Commitments, Contingencies and Guarantees In determining 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 combined financial statements when it is at least reasonably possible that a material loss could be incurred. Environmental Contingencies 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. Legal The Company is from time to time involved in various legal proceedings related to its business. Management does not believe that adverse decisions in any pending or threatened proceeding or that amounts that may be required to be paid by reason thereof will have a material adverse effect of the Company’s financial condition or results of operations. Dowa Debt Agreements 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 2% per annum of 70% of the outstanding principal balance, payable in semi-annual installments, on that date which is 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 December 31, 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 accrued daily at LIBOR plus 1.5% and was 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 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. In connection with entering into the WCF (as defined below), 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 for an approximate 18.5% of the equity interest of the LGJV. 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 December 31, 2020, the ownership of the LGJV entities was 51.5% the Company and 48.5% Dowa. On March 11, 2021, the Company repurchased the 18.5% interest from Dowa, for a total consideration of $71,550, including a 70% penalty and any Dowa holding costs of this incremental interest, increasing our ownership to 70.0%. On May 30, 2019, the LGJV entered into a working capital facility agreement (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 December 31, 2020, the LGJV had $60,000 outstanding under the WCF. On March 11, 2021, we extinguished our portion of the WCF of $42,000. 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.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2020
Income Taxes
Income Taxes	11. Income Taxes The components of loss from continuing operations before income taxes were as follows for the years ended December 31: 2020 2019 U.S. $ (32,964) $ (28,761) Mexico (2,063) (2,146) Total $ (35,027) $ (30,907) The consolidated income tax benefit from continuing operations consisted of nil and nil, for the years ended December 31, 2020 and 2019, respectively. A reconciliation of the actual income tax benefit and the tax computed by applying the applicable U.S. federal rate to the loss before income taxes is as follows for the years ended December 31: 2020 2019 Tax benefit from continuing operations $ 7,356 $ 6,491 State tax benefit from continuing operations 1,577 1,052 Nondeductible expenses (773) (2) Change in valuation allowance (8,707) (10,111) Effect of tax rate change 2,991 666 Effect of foreign tax rate differential 49 125 Effect of reorganization on net operating loss (2,186) 2,100 Other (307) (321) Total income tax benefit $ — $ — The components of the net deferred tax assets (liabilities) are summarized as follows for the year ended: 2020 2019 Deferred tax assets Accrued compensation $ 457 $ 259 Deferred share unit awards 218 172 Other accrued liabilities 26 24 Mineral properties 2,487 2,332 Exploration — 48 Operating loss carryforward 30,729 29,068 Foreign deferred tax assets 14,091 8,736 Stock options 8,182 6,605 Loan fees 1,303 592 Other 27 26 Valuation allowances (56,320) (47,600) Total deferred tax assets 1,200 262 Deferred tax liabilities Property, plant and equipment (276) (253) Exploration and development (16) — Prepaid expenses (908) (9) Total deferred tax liabilities (1,200) (262) Net deferred income tax assets (liabilities) $ — $ — Based upon the level of taxable income (loss) and projections of future taxable income (loss) over the periods in which the deferred tax assets are deductible, management believes it is more likely than not that the Company will not realize the benefits of these deductible differences, and thus has recorded a valuation allowance from continuing operations against the United States and Mexico net deferred tax asset balances of $56,320. If the Company is profitable for a number of years, and the prospects for the realization of the deferred tax assets become more likely than not, the Company will then reverse all or a portion of the valuation allowance that could result in a reduction of future reported income tax expense. At December 31, 2020 the Company had $118,049 of net operating loss carryforwards from continuing operations in the United States. Of the total net operating loss from continuing operations, $101,279 expire at various dates through 2037, and $16,769 may be carried forward indefinitely. There are also $5,572 of net operating loss carryforwards (net of inflation adjustments) in Mexico which expire at various dates through 2030. No assets have been recognized for net operating loss carryforwards where the Company believes it is more likely than not that the net operating losses will not be realized. The Company has adopted the provisions of ASC 740-10, Income Taxes . The Company files income tax returns in the U.S. and Mexico. The statute of limitations for tax returns filed in the U.S. and Mexico is three years and five years, respectively, from the date of filing. The Company’s 2020, 2019, 2018 and 2017 U.S. tax returns are subject to examinations by U.S. tax authorities until 2024, 2023, 2022 and 2021, respectively. The Company is no longer subject to examinations by Mexico tax authorities for years prior to 2016. As of December 31, 2020, the Company has not recognized any increases or decreases in unrecognized tax benefits, as it is more likely than not that all tax positions will be upheld by the taxing authorities. The Company reports tax penalties in income tax expense. No such penalties were recognized during the periods presented. Effective January 1, 2017, the Company's Mexico assets and operations are owned by entities that have elected to be treated for United States tax purposes as corporations and, as a result, the taxable income or loss and other tax attributes of such entities are stated separately from the Company's United States assets and operations and are not included in the Company's United States federal consolidated income tax return. The Company's other foreign assets and operations are owned by entities that have elected to be treated for U.S. tax purposes as unincorporated branches of a U.S. holding company and, as a result, the taxable income or loss and other tax attributes of such entities are included in the Company's U.S. federal consolidated income tax return. On December 22, 2017, the United States enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the "Act"). The Act makes broad changes to the United States tax code for corporations, including, but not limited to, (1) reducing the United States federal corporate tax rate from 35% to 21%; (2) allowing immediate deductibility for 100% of expenditures for qualified property through bonus depreciation; (3) eliminating the alternative minimum tax; and (4) changing rules related to uses and limitations of net operating loss carryforwards created in tax years beginning after December 31, 2017.

Discontinued Operations

Discontinued Operations	12 Months Ended
	Dec. 31, 2020
Discontinued Operations
Discontinued Operations	12. Discontinued Operations On October 30, 2020 in conjunction with the IPO, Gatos Silver, Inc. (named Sunshine Silver Mining & Refining Corporation prior to October 30, 2020) completed the distribution of its reportable U.S. segment, which was comprised of SOP. SOP holds an interest in the Sunshine Complex located in the Coeur d’Alene Mining District in Idaho and is comprised of the Sunshine Mine and the Sunshine Big Creek Refinery. To effect the distribution, the Company distributed, on a pro rata basis, all equity interest of SOP to its stockholders of record immediately prior to completion of the IPO. Shareholders received approximately 0.10594 shares of common stock of SOP for every share of the Company’s common stock held. SOP became a wholly owned subsidiary of a newly created Delaware corporation named Silver Opportunity Partners Corporation, subsequently renamed to Sunshine Silver Mining & Refining Corporation. The assets and liabilities have been reflected as discontinued operations in the consolidated balance sheet as of December 31, 2019, and consist of the following: December 31, 2019 Current Assets of Discontinued Operations Cash and cash equivalents $ 504 Restricted Cash 315 Materials and supplies inventory 103 Prepaid expenses 201 Total current assets of discontinued operations $ 1,123 Non-Current Assets of Discontinued Operations Metals inventory $ 250 Property, plant and equipment, net (1) 30,102 Total non-current assets of discontinued operations $ 30,352 Current Liabilities of Discontinued Operations Accounts payable and other accrued liabilities $ 341 Other 307 Total current liabilities of discontinued operations $ 648 Non-Current Liabilities of Discontinued Operations Reclamation obligations 1,439 Total non-current liabilities of discontinued operations $ 1,439 (1) Property, plant and equipment of discontinued operations consisted of the following: December 31, 2019 Mineral properties $ 18,203 Plant and equipment 13,621 Land 1,814 Buildings, infrastructure and improvements 16,798 Furniture, fixtures and computers 556 Property, plant and equipment at cost 50,992 Less accumulated amortization (20,890) Property, plant and equipment, net $ 30,102 Mineral Properties SOP conducts exploration activities on patented and unpatented mining claims in the United States. SOP 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 SOP produces and sells minerals. The results of discontinued operations are presented separately in the consolidated statements of operations and comprehensive loss. The results of operations for this entity for the period ended October 30, 2020 and year ended December 31, 2019 have been reflected as discontinued operations in the consolidated statements of operations and comprehensive loss for the years ended December 31, 2020 and 2019, and consist of the following: December 31, December 31, 2020 2019 Operating Expenses of Discontinued Operations Exploration $ 352 $ 325 Pre-development 1,700 2,317 General and administrative 1,431 1,943 Amortization 1,935 2,335 Total expenses 5,418 6,920 Other Income of Discontinued Operations Other income (4) (10) Net Loss of Discontinued Operations $ 5,414 $ 6,910 Other Comprehensive Gain of Discontinued Operations Unrealized gain on securities, net of tax — (32) Comprehensive Loss of Discontinued Operations $ 5,414 $ 6,878 The Company has separately reported the cash flow activity of the discontinued operations in the consolidated statements of cash flows. The cash flow activity from discontinued operations for the period ended October 30, 2020 and year ended December 31, 2019 have been reflected as discontinued operations in the consolidated statements of cash flows for the years ended December 31, 2020 and 2019, and consist of the following: December 31, December 31, 2020 2019 Discontinued Operating Activities Net loss $ (5,414) $ (6,910) Adjustments to reconcile net loss to net cash used by operating activities: Amortization 1,935 2,335 Stock compensation expense 195 212 Accretion expense 91 102 Other — 63 Changes in operating assets and liabilities: Accounts payable and other accrued liabilities (256) 97 Materials and supplies inventory (2) 67 Other current assets (2) 17 Net cash used by operating activities of discontinued operations (3,453) (4,017) Investing Activities of Discontinued Operations Purchase of property, plant and equipment (22) (534) Transfers of restricted cash to cash 40 — Net cash provided by (used by) investing activities of discontinued operations 18 (534) Financing Activities of Discontinued Operations Related-party convertible notes 500 — PPP Loan proceeds 307 — Net cash provided by financing activities of discontinued operations 807 —

Segment Information

Segment Information	12 Months Ended
	Dec. 31, 2020
Segment Information
Segment Information	13. Segment Information The Company operates in a single industry as a corporation engaged in the acquisition, exploration and development of silver mineral interests. The Company has mineral property interests in Mexico. The Company’s reportable segments are based on the Company’s mineral interests and management structure and include Mexico and Corporate segments. The Mexico segment engages in the exploration, development and operation of the Company’s Mexican mineral interests and includes the Company’s investment in its LGJV. Financial information relating to the Company's segments is as follows: Year Ended December 31, 2020 Year Ended December 31, 2019 Mexico Corporate Total Mexico Corporate Total Exploration $ 785 $ — $ 785 $ 923 $ — $ 923 General and administrative 549 7,216 7,765 296 2,607 2,903 Amortization — 30 30 — 34 34 Arrangement fees — 4,843 4,843 — 2,988 2,988 Interest expense — 4,047 4,047 — — — Equity loss in affiliates 17,585 — 17,585 12,865 — 12,865 Dilution loss on affiliates — — — 11,231 — 11,231 Net other loss (income) 9 (37) (28) 31 (67) (36) Capital expenditures — — — — — — Total assets 38,326 227,084 265,410 55,372 67,448 122,820

Investment in Affiliates

Investment in Affiliates	12 Months Ended
	Dec. 31, 2020
Investment in Affiliates
Investment in Affiliates	14. Investment in Affiliates During the years ended December 31, 2020 and 2019, the Company recognized a $17,585 and $12,865 loss, respectively, on its investment in the LGJV Entities, representing its ownership share of the LGJV Entities’ operational results. The combined balance sheets and combined statements of loss of the LGJV Entities as of December 31, 2020 and 2019, and for the years ended December 31, 2020 and 2019 are as follows: LOS GATOS JOINT VENTURE COMBINED BALANCE SHEETS (in thousands) December 31, December 31, 2020 2019 ASSETS Current Assets Cash and cash equivalents $ 1,676 $ 1,302 Receivables 3,988 5,655 Inventories 10,315 11,374 VAT receivable 50,732 50,184 Other current assets 2,891 1,672 Total current assets 69,602 70,187 Non‑Current Assets Mine development, net 202,874 182,602 Property, plant and equipment, net 196,942 216,131 Total non‑current assets 399,816 398,733 Total Assets $ 469,418 $ 468,920 LIABILITIES AND OWNERS’ CAPITAL Current Liabilities Accounts payable and accrued liabilities $ 35,767 $ 43,287 Related party payable 1,703 6,875 Accrued interest 101 885 Unearned revenue 3,276 — Equipment loans 7,084 6,948 Dowa Term Loan 31,826 — Working Capital Facility 60,000 — Total current liabilities 139,757 57,995 Non‑Current Liabilities Dowa Term Loan 187,767 217,796 Working Capital Facility — 60,000 Equipment loans 6,120 12,916 Reclamation obligations 12,162 11,314 Total non‑current liabilities 206,049 302,026 Owners’ Capital Capital contributions 271,368 237,905 Paid‑in capital 16,366 7,400 Accumulated deficit (164,122) (136,406) Total owners’ capital 123,612 108,899 Total Liabilities and Owners’ Capital $ 469,418 $ 468,920 LOS GATOS JOINT VENTURE COMBINED STATEMENT OF LOSS (in thousands) Twelve Months Ended December 31, 2020 2019 Sales $ 121,470 $ 36,508 Expenses Cost of sales 65,005 30,339 Royalties 2,148 184 Exploration 841 208 General and administrative 9,718 2,587 Depreciation, depletion and amortization 44,904 15,460 Other 3,416 — 126,032 48,778 Other (income) expense Interest expense 12,484 5,107 Arrangement fee 8,888 3,524 Accretion expense 849 789 Other (income) expense (109) 239 Foreign exchange loss 1,042 174 23,154 9,833 Net Loss $ (27,716) $ (22,103) For the year ended December 31, 2020, the Company contributed $17,227 to the LGJV in support of continued operations in the form of cash and receivables converted to capital of the LGJV, as described in Note 7 – Related-Party Transactions.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2020
Summary of Significant Accounting Policies
Basis of Consolidation and Presentation	Basis of Consolidation and Presentation The accompanying consolidated financial statements of the Company have been prepared in accordance with United States Generally Accepted Accounting Principles (“GAAP”) and include the accounts of Gatos Silver and MLS. All Company subsidiaries are consolidated. All significant intercompany balances and transactions have been eliminated. All equity interest in the Company’s wholly-owned subsidiary, SOP, was distributed to its stockholders in October 2020. The accounts for SOP have been presented as discontinued operations in the accompanying consolidated financial statements. Prior year amounts have also been modified in these financial statements to properly report amounts under current operations and discontinued operations. See Note 12 – Discontinued Operations for further discussion. All common stock shares, options and deferred stock units amounts and prices in the consolidated financial statements have been adjusted for the Reverse Split.
Equity method investment	Equity method investment The Company accounts for its investment in affiliates using the equity method of accounting whereby, after valuing the initial investment, the Company recognizes its proportional share of results of operations of the affiliate in its consolidated financial statements. Equity method investments are reviewed periodically for other-than-temporary decline in value. The Company’s investment in the LGJV Entities is presented as Investment in affiliates in the consolidated balance sheet. The basis difference between the carrying amount of the investment in affiliates and the Company’s equity in the LGJV Entities’ net assets is due to value of the LGJV mineral resources. This basis difference is amortized on a units of production basis as the mineral resource is produced. The Company incurs certain costs on behalf of the LGJV, primarily related to a project development loan arrangement fee. The Company’s proportional share of such costs are reported as an investment in affiliate and the residual costs, related to Dowa’s proportional ownership, are reported in the statement of loss as arrangement fees.
Use of estimates	Use of estimates The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include mineral properties; environmental reclamation and closure obligations; valuation of stock and stock options; valuation allowances for deferred tax assets; and the fair value of financial instruments.
Functional currency and translation of foreign currencies	Functional currency and translation of foreign currencies The U.S. dollar is the functional currency of the Company and its subsidiaries. Monetary assets and liabilities denominated in foreign currencies are translated to U.S. dollars at exchange rates in effect at the balance sheet date, with the resulting gains or losses reported in foreign exchange (gain) loss in the statement of operations and comprehensive loss. Non-monetary assets and liabilities are translated at historical exchange rates. Expenses and income items denominated in foreign currencies are translated into U.S. dollars at historical exchange rates.
Cash and cash equivalents	Cash and cash equivalents The Company considers all highly liquid short-term investments with a maturity of three months or less when purchased to be cash equivalents. Restricted cash, included in other current assets, consists of cash and investments held as collateral for a letter of credit and other extensions of credit.
Property, plant and equipment	Property, plant and equipment Property, plant and equipment are recorded at cost. Amortization of plant and equipment is calculated on the straight-line method over the estimated useful lives of the assets. The estimated useful lives of furniture, fixtures and computers range from three to 10 years.
Impairment of long-lived assets	Impairment of long-lived assets Long-lived assets, such as property, plant and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. If circumstances require a long-lived asset or asset group to be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. There were no impairments recognized for the years ended December 31, 2020 and 2019.
Stock-based compensation	Stock-based compensation The Company recognizes all employee stock-based compensation as a cost in the consolidated financial statements. Equity-classified awards are measured at the grant date fair value of the award. The Company estimates grant date fair value using the Black-Scholes option-pricing model using the grant date share price, estimated amounts for volatility of the Company’s stock based on the historical volatility of a group of peer companies' common stock over the expected option life, the expected life of the awards, the fair value of the underlying shares, the risk-free interest rate and the expected dividend yield. The Company estimates forfeitures of stock-based awards based on historical data and periodically adjusts the forfeiture rate. The adjustment of the forfeiture rate is recorded as a cumulative adjustment in the period the forfeiture estimate is changed. Stock-based compensation expense is included as a component of either exploration or general and administrative expense over the requisite service period of the award.
Net loss per share	Net loss per share Basic and diluted loss per share are computed by dividing the net loss available to common stockholders by the weighted-average number of common stock shares outstanding, including deferred stock units (“DSUs”), for the respective period presented. For the years ended December 31, 2020 and 2019, stock options have been excluded from the dilutive earnings per share calculation as their effect would be anti-dilutive.
Income taxes	Income taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs.
Recently issued accounting standards	Recently issued accounting standards In February 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842), which will require lessees to recognize assets and liabilities for the rights and obligations created by most leases on the balance sheet. These changes become effective for the Company’s fiscal year beginning January 1, 2022. The Company is still assessing the impact of the standard but does not expect there will be a material impact to the Company’s financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740) to simplify and enhance accounting for income taxes. This update is effective in fiscal years, beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022, and early adoption is permitted. The Company is still assessing the impact of the standard but does not expect there will be a material impact to the Company’s financial statements.

Other Current Assets (Tables)

Other Current Assets (Tables)	12 Months Ended
	Dec. 31, 2020
Other Current Assets
Schedule of components of other current assets	December 31, December 31, 2020 2019 Value added tax receivable $ 318 $ 213 Restricted cash — 151 Prepaid expenses 3,560 157 Deposits and other 1 31 Total other current assets $ 3,879 $ 552

Accounts Payable and Other Ac_2

Accounts Payable and Other Accrued Liabilities (Tables)	12 Months Ended
	Dec. 31, 2020
Accounts Payable and Other Accrued Liabilities
Schedule of components of accounts Payable and Other Current Liabilities	December 31, December 31, 2020 2019 Accounts payable $ 560 $ 60 Accrued expenses 1,240 1,488 Accrued compensation 1,964 1,269 Other 260 — Total accounts payable and other accrued liabilities $ 4,024 $ 2,817

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	12 Months Ended
	Dec. 31, 2020
Stockholders' Equity
Summary of vesting start dates and number of options granted to employees and directors	Recipient Options Granted Vesting Start Date Grant Date Employees 508,500 December 14, 2018 May 3, 2019 Directors 93,000 December 14, 2018 May 3, 2019 Employees 416,000 January 20, 2020 January 20, 2020 Directors 197,666 January 20, 2020 January 20, 2020 Employees 164,000 January 20, 2020 January 30, 2020 Directors 20,667 March 1, 2020 March 1, 2020 Employees 12,000 July 31, 2020 July 31, 2020 Employees 1,127,500 October 27, 2020 October 27, 2020
Schedule of stock option activity	Grant Date May 2019 Jan. 2020 Mar. 2020 Jul. 2020 Oct. 2020 Risk-free interest rate % % % % % Dividend yield — — — — — Estimated volatility % % % % % Expected option life 6 years 6 years 6 years 6 years 6 years
Schedule of assumptions used to compute fair value of options granted using Black-Scholes option valuation model	December 31, 2020 2019 Risk-free interest rate % % Dividend yield — — Estimated volatility % 63.60 % Expected option life 6 years 6 years
Schedule of weighted average grant date fair value and total stock based compensation expense	Weighted‑Average Aggregate Weighted‑Average Exercise Intrinsic Remaining Employee & Director Options Shares Price Value Life (Years) Outstanding at December 31, 2019 3,551,186 $ Granted 1,937,833 $ Exercised — $ — Forfeited (77,089) $ Outstanding at December 31, 2020 5,411,930 $ $ 17,516 Vested at December 31, 2020 3,251,211 $ $ 9,292 Weighted‑Average Aggregate Weighted‑Average Exercise Intrinsic Remaining LGJV Personnel Options Shares Price Value Life (Years) Outstanding at December 31, 2019 54,595 $ Granted — $ — Exercised — $ — Forfeited (10,919) $ Outstanding at December 31, 2020 43,676 $ $ 253 Vested at December 31, 2020 43,676 $ $ 253

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2020
Income Taxes
Schedule of components of loss from continuing operations before income taxes	2020 2019 U.S. $ (32,964) $ (28,761) Mexico (2,063) (2,146) Total $ (35,027) $ (30,907)
Schedule of reconciliation of the actual income tax benefit and the tax computed by applying the applicable U.S. federal rate to the loss before income taxes	2020 2019 Tax benefit from continuing operations $ 7,356 $ 6,491 State tax benefit from continuing operations 1,577 1,052 Nondeductible expenses (773) (2) Change in valuation allowance (8,707) (10,111) Effect of tax rate change 2,991 666 Effect of foreign tax rate differential 49 125 Effect of reorganization on net operating loss (2,186) 2,100 Other (307) (321) Total income tax benefit $ — $ —
Schedule of components of the net deferred tax assets (liabilities)	2020 2019 Deferred tax assets Accrued compensation $ 457 $ 259 Deferred share unit awards 218 172 Other accrued liabilities 26 24 Mineral properties 2,487 2,332 Exploration — 48 Operating loss carryforward 30,729 29,068 Foreign deferred tax assets 14,091 8,736 Stock options 8,182 6,605 Loan fees 1,303 592 Other 27 26 Valuation allowances (56,320) (47,600) Total deferred tax assets 1,200 262 Deferred tax liabilities Property, plant and equipment (276) (253) Exploration and development (16) — Prepaid expenses (908) (9) Total deferred tax liabilities (1,200) (262) Net deferred income tax assets (liabilities) $ — $ —

Discontinued Operations (Tables

Discontinued Operations (Tables)	12 Months Ended
	Dec. 31, 2020
Discontinued Operations
Schedule of assets and liabilities, consolidated statements of operations and comprehensive loss and cash flow activity of discontinued operations	December 31, 2019 Current Assets of Discontinued Operations Cash and cash equivalents $ 504 Restricted Cash 315 Materials and supplies inventory 103 Prepaid expenses 201 Total current assets of discontinued operations $ 1,123 Non-Current Assets of Discontinued Operations Metals inventory $ 250 Property, plant and equipment, net (1) 30,102 Total non-current assets of discontinued operations $ 30,352 Current Liabilities of Discontinued Operations Accounts payable and other accrued liabilities $ 341 Other 307 Total current liabilities of discontinued operations $ 648 Non-Current Liabilities of Discontinued Operations Reclamation obligations 1,439 Total non-current liabilities of discontinued operations $ 1,439 (1) Property, plant and equipment of discontinued operations consisted of the following: December 31, 2019 Mineral properties $ 18,203 Plant and equipment 13,621 Land 1,814 Buildings, infrastructure and improvements 16,798 Furniture, fixtures and computers 556 Property, plant and equipment at cost 50,992 Less accumulated amortization (20,890) Property, plant and equipment, net $ 30,102 December 31, December 31, 2020 2019 Operating Expenses of Discontinued Operations Exploration $ 352 $ 325 Pre-development 1,700 2,317 General and administrative 1,431 1,943 Amortization 1,935 2,335 Total expenses 5,418 6,920 Other Income of Discontinued Operations Other income (4) (10) Net Loss of Discontinued Operations $ 5,414 $ 6,910 Other Comprehensive Gain of Discontinued Operations Unrealized gain on securities, net of tax — (32) Comprehensive Loss of Discontinued Operations $ 5,414 $ 6,878 December 31, December 31, 2020 2019 Discontinued Operating Activities Net loss $ (5,414) $ (6,910) Adjustments to reconcile net loss to net cash used by operating activities: Amortization 1,935 2,335 Stock compensation expense 195 212 Accretion expense 91 102 Other — 63 Changes in operating assets and liabilities: Accounts payable and other accrued liabilities (256) 97 Materials and supplies inventory (2) 67 Other current assets (2) 17 Net cash used by operating activities of discontinued operations (3,453) (4,017) Investing Activities of Discontinued Operations Purchase of property, plant and equipment (22) (534) Transfers of restricted cash to cash 40 — Net cash provided by (used by) investing activities of discontinued operations 18 (534) Financing Activities of Discontinued Operations Related-party convertible notes 500 — PPP Loan proceeds 307 — Net cash provided by financing activities of discontinued operations 807 —

Segment Information (Tables)

Segment Information (Tables)	12 Months Ended
	Dec. 31, 2020
Segment Information
Schedule of segment information	Year Ended December 31, 2020 Year Ended December 31, 2019 Mexico Corporate Total Mexico Corporate Total Exploration $ 785 $ — $ 785 $ 923 $ — $ 923 General and administrative 549 7,216 7,765 296 2,607 2,903 Amortization — 30 30 — 34 34 Arrangement fees — 4,843 4,843 — 2,988 2,988 Interest expense — 4,047 4,047 — — — Equity loss in affiliates 17,585 — 17,585 12,865 — 12,865 Dilution loss on affiliates — — — 11,231 — 11,231 Net other loss (income) 9 (37) (28) 31 (67) (36) Capital expenditures — — — — — — Total assets 38,326 227,084 265,410 55,372 67,448 122,820

Investment in Affiliates (Table

Investment in Affiliates (Tables) - Los Gatos Joint Venture ("LGJV")	12 Months Ended
	Dec. 31, 2020
Investment in Affiliate
Schedule of combined balance sheets	LOS GATOS JOINT VENTURE COMBINED BALANCE SHEETS (in thousands) December 31, December 31, 2020 2019 ASSETS Current Assets Cash and cash equivalents $ 1,676 $ 1,302 Receivables 3,988 5,655 Inventories 10,315 11,374 VAT receivable 50,732 50,184 Other current assets 2,891 1,672 Total current assets 69,602 70,187 Non‑Current Assets Mine development, net 202,874 182,602 Property, plant and equipment, net 196,942 216,131 Total non‑current assets 399,816 398,733 Total Assets $ 469,418 $ 468,920 LIABILITIES AND OWNERS’ CAPITAL Current Liabilities Accounts payable and accrued liabilities $ 35,767 $ 43,287 Related party payable 1,703 6,875 Accrued interest 101 885 Unearned revenue 3,276 — Equipment loans 7,084 6,948 Dowa Term Loan 31,826 — Working Capital Facility 60,000 — Total current liabilities 139,757 57,995 Non‑Current Liabilities Dowa Term Loan 187,767 217,796 Working Capital Facility — 60,000 Equipment loans 6,120 12,916 Reclamation obligations 12,162 11,314 Total non‑current liabilities 206,049 302,026 Owners’ Capital Capital contributions 271,368 237,905 Paid‑in capital 16,366 7,400 Accumulated deficit (164,122) (136,406) Total owners’ capital 123,612 108,899 Total Liabilities and Owners’ Capital $ 469,418 $ 468,920
Schedule of combined results of loss	LOS GATOS JOINT VENTURE COMBINED STATEMENT OF LOSS (in thousands) Twelve Months Ended December 31, 2020 2019 Sales $ 121,470 $ 36,508 Expenses Cost of sales 65,005 30,339 Royalties 2,148 184 Exploration 841 208 General and administrative 9,718 2,587 Depreciation, depletion and amortization 44,904 15,460 Other 3,416 — 126,032 48,778 Other (income) expense Interest expense 12,484 5,107 Arrangement fee 8,888 3,524 Accretion expense 849 789 Other (income) expense (109) 239 Foreign exchange loss 1,042 174 23,154 9,833 Net Loss $ (27,716) $ (22,103)

Description of Business (Detail

Description of Business (Details) $ / shares in Units, $ in Thousands	Mar. 11, 2021	Nov. 10, 2020USD ($)$ / sharesshares	Nov. 10, 2020USD ($)$ / shares	Oct. 30, 2020USD ($)$ / sharesshares	Sep. 01, 2019product	Nov. 30, 2020$ / sharesshares	Oct. 31, 2020$ / sharesshares	May 31, 2019	Dec. 31, 2020USD ($)	Dec. 31, 2019USD ($)	Apr. 01, 2016USD ($)
Description of Business and Basis of Preparation of Financial Statements
Issued price per share | $ / shares							$ 7
Gross proceeds									$ 160,436	$ 40,465
Reverse stock split ratio				0.5
IPO And Over Allotment Option [Member]
Description of Business and Basis of Preparation of Financial Statements
Net Proceeds From Issuance Of Common Stock			$ 155,750
Initial public offering
Description of Business and Basis of Preparation of Financial Statements
Issuance of shares of common stock | shares				21,430,000			21,430,000
Issued price per share | $ / shares				$ 7		$ 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				3,214,500
Issued price per share | $ / shares		$ 7	$ 7			$ 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)									70.00%
Number of concentrate products | product					2
Dowa Metals and Mining Co., Ltd. ("Dowa")
Description of Business and Basis of Preparation of Financial Statements
Ownership interest (as a percent)									30.00%
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
Increase in ownership interest through the conversion of loan to equity								18.50%
Ownership interest (as a percent)								48.50%	48.50%		30.00%
Dowa Metals and Mining Co., Ltd. ("Dowa") | Los Gatos Joint Venture ("LGJV") | Subsequent Events
Description of Business and Basis of Preparation of Financial Statements
Ownership interest repurchased	18.50%

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Summary of Significant Accounting Policies
Impairments recognized	$ 0	$ 0
Furniture, fixtures and computers | Minimum
Summary of Significant Accounting Policies
Estimated useful lives	3 years
Furniture, fixtures and computers | Maximum
Summary of Significant Accounting Policies
Estimated useful lives	10 years

Other Current Assets (Details)

Other Current Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Other Current Assets
Value added tax receivable	$ 318	$ 213
Restricted cash		151
Prepaid expenses	3,560	157
Deposits and other	1	31
Total other current assets	$ 3,879	$ 552

Property, Plant and Equipment_2

Property, Plant and Equipment, net (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment, net
Santa Valeria Concession, royalty payment percentage	1.00%
Mineral lease payments made	$ 414	$ 409

Accounts Payable and Other Ac_3

Accounts Payable and Other Accrued Liabilities - Components (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Accounts Payable and Other Accrued Liabilities
Accounts payable	$ 560	$ 60
Accrued expenses	1,240	1,488
Accrued compensation	1,964	1,269
Other	260
Total accounts payable and other accrued liabilities	$ 4,024	$ 2,817

Related-Party Convertible Not_2

Related-Party Convertible Notes (Details) - USD ($) $ in Thousands	Oct. 30, 2020	Dec. 31, 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 non-cash	$ 3,984
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%

Related-Party Transactions (Det

Related-Party Transactions (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Related-Party Transactions
Receivables from related party	$ 1,727	$ 6,422
Receivables converted into capital	5,850
Los Gatos Joint Venture ("LGJV")
Related-Party Transactions
Service fees earned	3,900	5,100
Service fees received	766	1,950
Receivables from related party	1,200	$ 4,050
Silver Opportunity Partners Corporation
Related-Party Transactions
Revenue from Related Parties	$ 41

Stockholders' Equity - Common S

Stockholders' Equity - Common Stock and Preferred Stock Transactions (Details) - USD ($) $ / shares in Units, $ in Thousands	Nov. 10, 2020	Oct. 30, 2020	Nov. 30, 2020	Oct. 31, 2020	Jul. 31, 2019	Jun. 30, 2019	May 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Stockholders' Equity
Common stock, shares authorized								700,000,000	700,000,000
Common stock, par value								$ 0.001	$ 0.001
Preferred stock, shares authorized								50,000,000
Preferred stock, par value								$ 0.001
Common stock, shares outstanding								59,183,076	40,323,430
Preferred stock, shares outstanding								0
Common stock, number of shares exchanged for each share pursuant to Reorganization				0.39406
Issued price per share				$ 7
Proceeds from issuance of stock			$ 172,512
Common stock shares issued to executive officers for deferred salary compensation				47,061
Common stock, shares issued upon conversion of outstanding convertible notes				2,712,003
Issuance of common stock								$ 160,436	$ 40,465
Shares available for grant under the Long-Term Incentive Plan								9,400,000
Stock based compensation expense								$ 4,368	$ 3,007
Initial public offering
Stockholders' Equity
Issuance of shares of common stock		21,430,000		21,430,000
Issued price per share		$ 7	$ 7
Issuance of common stock		$ 150,010
Over-allotment option
Stockholders' Equity
Issuance of shares of common stock	3,214,500		3,214,500
Issued price per share	$ 7		$ 7
Issuance of common stock	$ 22,502
Private placement
Stockholders' Equity
Issuance of shares of common stock					1,250,000	38,822	2,083,334
Issued price per share					$ 12	$ 12	$ 12
Proceeds from issuance of stock					$ 15,000	$ 465	$ 25,000

Stockholders' Equity - Stock Op

Stockholders' Equity - Stock Option Transactions (Details) - USD ($) $ / shares in Units, $ in Thousands

Oct. 27, 2020

Jul. 31, 2020

Mar. 01, 2020

Jan. 30, 2020

Jan. 20, 2020

May 03, 2019

Jan. 31, 2021

Oct. 31, 2020

Jul. 31, 2020

Mar. 31, 2020

Jan. 31, 2020

May 31, 2019

Dec. 31, 2020

Dec. 31, 2019

Non-employee directors

Stockholders' Equity

Requisite service period for options

1 year 6 months

1 year

Options

Stockholders' Equity

Contractual term of options

10 years

Purchase of common stock

1

Total unrecognized stock based compensation expense

$ 9,377

Total unrecognized stock based compensation expense, recognition period

2 years 2 months 12 days

Weighted-average grant-date fair value

$ 5.65

$ 7

Weighted average grant date fair value of options per share

$ 5.65

$ 7

Director and Employee Options

Stockholders' Equity

Contractual term of options

6 years

6 years

6 years

6 years

6 years

Stock options granted (in shares)

1,937,833

Director and Employee Options | Employees

Stockholders' Equity

Stock options granted (in shares)

12,000

164,000

416,000

508,500

Director and Employee Options | Non-employee directors

Stockholders' Equity

Stock options granted (in shares)

1,127,500

20,667

197,666

93,000

LGJV Personnel Options

Stockholders' Equity

Contractual term of options

6 years

6 years

LGJV Personnel Options | Employees

Stockholders' Equity

Requisite service period for options

3 years

4 years

Stockholders' Equity - Summary

Stockholders' Equity - Summary of vesting start dates and number of options granted to employees and directors (Details) - Director and Employee Options - shares	Oct. 27, 2020	Jul. 31, 2020	Mar. 01, 2020	Jan. 30, 2020	Jan. 20, 2020	May 03, 2019	Dec. 31, 2020
Stockholders' Equity
Options granted							1,937,833
Employees
Stockholders' Equity
Options granted		12,000		164,000	416,000	508,500
Non-employee directors
Stockholders' Equity
Options granted	1,127,500		20,667		197,666	93,000

Stockholders' Equity - Assumpti

Stockholders' Equity - Assumptions used to compute the fair value of the options granted using the Black-Scholes option valuation model (Details)	1 Months Ended					12 Months Ended
	Oct. 31, 2020	Jul. 31, 2020	Mar. 31, 2020	Jan. 31, 2020	May 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Director and Employee Options
Stockholders' Equity
Risk-free interest rate	0.51%	1.63%	1.63%	1.63%	2.38%
Dividend yield	0.00%	0.00%	0.00%	0.00%
Estimated volatility	62.50%	62.20%	62.20%	62.20%	66.80%
Expected option life	6 years	6 years	6 years	6 years	6 years
LGJV Personnel Options
Stockholders' Equity
Risk-free interest rate						0.51%	1.76%
Estimated volatility						62.09%	63.60%
Expected option life						6 years	6 years

Stockholders' Equity - Stock _2

Stockholders' Equity - Stock option activity (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Director and Employee Options
Shares
Outstanding at December 31, 2019	3,551,186
Options granted	1,937,833
Exercised	0
Forfeited	(77,089)
Outstanding at December 31, 2020	5,411,930	3,551,186
Vested at December 31, 2020	3,251,211
Weighted-Average Exercise Price
Outstanding at December 31, 2019	$ 14.39
Granted	9.09
Exercised	0
Forfeited	12.46
Outstanding at December 31, 2020	12.52	$ 14.39
Vested at December 31, 2020	$ 14.71
Aggregate Intrinsic Value
Outstanding balance	$ 17,516	$ 0
Vested at December 31, 2020	$ 9,292
WeightedAverage Remaining Life (Years)
Outstanding balance	6 years 7 months 13 days	5 years 11 months 16 days
Vested at December 31, 2020	4 years 10 months 13 days
LGJV Personnel Options
Shares
Outstanding at December 31, 2019	54,595
Forfeited	(10,919)
Outstanding at December 31, 2020	43,676	54,595
Vested at December 31, 2020	43,676
Weighted-Average Exercise Price
Outstanding at December 31, 2019	$ 7.37
Forfeited	7.92
Outstanding at December 31, 2020	7.23	$ 7.37
Vested at December 31, 2020	$ 7.23
Aggregate Intrinsic Value
Outstanding balance	$ 253
Vested at December 31, 2020	$ 253
WeightedAverage Remaining Life (Years)
Outstanding balance	4 years 10 months 28 days	6 years 1 month 10 days
Vested at December 31, 2020	4 years 10 months 28 days

Stockholders' Equity - Director

Stockholders' Equity - Director Share Unit Transactions (Details) - Director Share Unit - shares	Jan. 20, 2020	Dec. 31, 2020	Dec. 31, 2019
Stockholders' Equity
Number of shares underlying that each unit entitles		1
Awards granted (in shares)	5,103
Awards outstanding (in shares)		182,714	177,611

Commitments, Contingencies an_2

Commitments, Contingencies and Guarantees (Details) $ in Thousands	Mar. 31, 2021USD ($)	Mar. 11, 2021USD ($)	May 30, 2019USD ($)	Jan. 23, 2018USD ($)	May 31, 2019USD ($)	Jul. 31, 2017USD ($)D	Dec. 31, 2020USD ($)payment	Dec. 31, 2019USD ($)	Apr. 01, 2016
Commitments, Contingencies and Guarantees
Dilution loss on affiliates								$ 11,231
Working capital facility agreement | Subsequent Events
Commitments, Contingencies and Guarantees
Repayment of debt	$ 42
Los Gatos Joint Venture ("LGJV")
Commitments, Contingencies and Guarantees
Ownership percentage		70.00%
Los Gatos Joint Venture ("LGJV")
Commitments, Contingencies and Guarantees
Funding contributed for a partial repayment of loan					$ 18,200
Ownership interest (as a percent)							70.00%
Dilution loss on affiliates					11,231
Los Gatos Joint Venture ("LGJV") | Dowa Metals and Mining Co., Ltd. ("Dowa") | Subsequent Events
Commitments, Contingencies and Guarantees
Ownership interest that was repurchased		18.50%
Consideration paid for ownership interest repurchased		$ 71,550
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)						2.00%
Arrangement fee, percentage of outstanding principal balance considered (as a percent)						70.00%
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
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%
Los Gatos Joint Venture ("LGJV") | Los Gatos Joint Venture ("LGJV")
Commitments, Contingencies and Guarantees
Ownership interest (as a percent)							51.50%
Dowa Metals and Mining Co., Ltd. ("Dowa")
Commitments, Contingencies and Guarantees
Ownership interest (as a percent)							30.00%
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%
Increase in ownership interest through the conversion of loan to equity					18.50%
Dowa Metals and Mining Co., Ltd. ("Dowa") | Los Gatos Joint Venture ("LGJV") | Subsequent Events
Commitments, Contingencies and Guarantees
Ownership interest that was repurchased		18.50%

Income Taxes - Components of lo

Income Taxes - Components of loss before income taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Income Taxes
Total	$ (35,027)	$ (30,907)
U.S.
Income Taxes
Total	(32,964)	(28,761)
Mexico
Income Taxes
Total	$ (2,063)	$ (2,146)

Income Taxes - Effective tax re

Income Taxes - Effective tax reconciliation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Income Taxes
Tax benefit from continuing operations	$ 7,356	$ 6,491
State tax benefit from continuing operations	1,577	1,052
Nondeductible expenses	(773)	(2)
Change in valuation allowance	8,707	10,111
Effect of tax rate change	2,991	666
Effect of foreign tax rate differential	49	125
Effect of reorganization on net operating loss	2,186	(2,100)
Other	(307)	(321)
Total income tax benefit	$ 0	$ 0

Income Taxes - Components of th

Income Taxes - Components of the net deferred tax assets (liabilities) (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Deferred tax assets
Accrued compensation	$ 457	$ 259
Deferred share unit awards	218	172
Other accrued liabilities	26	24
Mineral properties	2,487	2,332
Exploration		48
Operating loss carryforward	30,729	29,068
Foreign deferred tax assets	14,091	8,736
Stock options	8,182	6,605
Loan fees	1,303	592
Other	27	26
Valuation allowances	(56,320)	(47,600)
Total deferred tax assets	1,200	262
Deferred tax liabilities
Property, plant and equipment	(276)	(253)
Exploration and development	(16)
Prepaid expenses	(908)	(9)
Total deferred tax liabilities	$ (1,200)	$ (262)

Income Taxes - Additional infor

Income Taxes - Additional information (Details) - USD ($) $ in Thousands	Dec. 22, 2017	Dec. 21, 2017	Dec. 31, 2020	Dec. 31, 2019
Income Taxes
Income tax benefit			$ 0	$ 0
U.S.
Income Taxes
Operating loss carryforwards			118,049
Operating loss carryforwards that may be carried forward indefinitely			101,279
Federal corporate tax rate	21.00%	35.00%
Mexico
Income Taxes
Operating loss carryforwards			5,572
Operating loss carryforwards that may be carried forward indefinitely			$ 16,769

Discontinued Operations (Detail

Discontinued Operations (Details)	Oct. 30, 2020shares
Silver Opportunity Partners Corporation
Discontinued Operations
Number of shares of SOP received by Company's stockholders	0.10594

Discontinued Operations - Asset

Discontinued Operations - Assets and liabilities of discontinued operations (Details) $ in Thousands	Dec. 31, 2019USD ($)
Current Assets of Discontinued Operations
Total current assets of discontinued operations	$ 1,123
Non-Current Assets of Discontinued Operations
Total non-current assets of discontinued operations	30,352
Current Liabilities of Discontinued Operations
Total current liabilities of discontinued operations	648
Non-Current Liabilities of Discontinued Operations
Total non-current liabilities of discontinued operations	1,439
Silver Opportunity Partners Corporation, discontinued operations | Spin off
Current Assets of Discontinued Operations
Cash and cash equivalents	504
Restricted Cash	315
Materials and supplies inventory	103
Prepaid expenses	201
Total current assets of discontinued operations	1,123
Non-Current Assets of Discontinued Operations
Metals inventory	250
Property, plant and equipment, net	30,102
Total non-current assets of discontinued operations	30,352
Current Liabilities of Discontinued Operations
Accounts payable and other accrued liabilities	341
Other	307
Total current liabilities of discontinued operations	648
Non-Current Liabilities of Discontinued Operations
Reclamation obligations	1,439
Total non-current liabilities of discontinued operations	$ 1,439

Discontinued Operations - Prope

Discontinued Operations - Property, plant and equipment of discontinued operations (Details) - Silver Opportunity Partners Corporation, discontinued operations - Spin off $ in Thousands	Dec. 31, 2019USD ($)
Discontinued Operations
Property, plant and equipment at cost	$ 50,992
Less accumulated amortization	(20,890)
Property, plant and equipment, net	30,102
Mineral properties
Discontinued Operations
Property, plant and equipment at cost	18,203
Plant and equipment
Discontinued Operations
Property, plant and equipment at cost	13,621
Land
Discontinued Operations
Property, plant and equipment at cost	1,814
Buildings, infrastructure and improvements
Discontinued Operations
Property, plant and equipment at cost	16,798
Furniture, fixtures and computers
Discontinued Operations
Property, plant and equipment at cost	$ 556

Discontinued Operations - Conso

Discontinued Operations - Consolidated statements of operations and comprehensive loss (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Other Income of Discontinued Operations
Net Loss of Discontinued Operations	$ 5,414	$ 6,910
Other Comprehensive Gain of Discontinued Operations
Comprehensive Loss of Discontinued Operations	5,414	6,878
Silver Opportunity Partners Corporation, discontinued operations | Spin off
Operating Expenses of Discontinued Operations
Exploration	352	325
Pre-development	1,700	2,317
General and administrative	1,431	1,943
Amortization	1,935	2,335
Total expenses	5,418	6,920
Other Income of Discontinued Operations
Other income	(4)	(10)
Net Loss of Discontinued Operations	5,414	6,910
Other Comprehensive Gain of Discontinued Operations
Unrealized gain on securities, net of tax		(32)
Comprehensive Loss of Discontinued Operations	$ 5,414	$ 6,878

Discontinued Operations - Cash

Discontinued Operations - Cash flow activity (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Discontinued Operating Activities
Net loss	$ (5,414)	$ (6,910)
Changes in operating assets and liabilities:
Net cash used by operating activities of discontinued operations	(3,453)	(4,017)
Investing Activities of Discontinued Operations
Net cash provided by (used by) investing activities of discontinued operations	18	(534)
Financing Activities of Discontinued Operations
Net cash provided by financing activities of discontinued operations	807
Silver Opportunity Partners Corporation, discontinued operations | Spin off
Discontinued Operating Activities
Net loss	(5,414)	(6,910)
Adjustments to reconcile net loss to net cash used by operating activities:
Amortization	1,935	2,335
Stock compensation expense	195	212
Accretion expense	91	102
Other		63
Changes in operating assets and liabilities:
Accounts payable and other accrued liabilities	(256)	97
Materials and supplies inventory	(2)	67
Other current assets	(2)	17
Net cash used by operating activities of discontinued operations	(3,453)	(4,017)
Investing Activities of Discontinued Operations
Purchase of property, plant and equipment	(22)	(534)
Transfers of restricted cash to cash	40
Net cash provided by (used by) investing activities of discontinued operations	18	$ (534)
Financing Activities of Discontinued Operations
Related-party convertible notes	500
PPP Loan proceeds	307
Net cash provided by financing activities of discontinued operations	$ 807

Segment Information (Details)

Segment Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Segment Information
Exploration	$ 785	$ 923
General and administrative	7,765	2,903
Amortization	30	34
Arrangement fees	4,843	2,988
Interest expense	4,047
Equity loss in affiliates	17,585	12,865
Dilution loss on affiliates		11,231
Total Assets	265,410	154,295
Continuing Operations
Segment Information
Exploration	785	923
General and administrative	7,765	2,903
Amortization	30	34
Arrangement fees	4,843	2,988
Interest expense	4,047
Equity loss in affiliates	17,585	12,865
Dilution loss on affiliates		11,231
Net other loss (income)	(28)	(36)
Total Assets	265,410	122,820
Mexico | Continuing Operations
Segment Information
Exploration	785	923
General and administrative	549	296
Equity loss in affiliates	17,585	12,865
Dilution loss on affiliates		11,231
Net other loss (income)	9	31
Total Assets	38,326	55,372
Corporate | Continuing Operations
Segment Information
General and administrative	7,216	2,607
Amortization	30	34
Arrangement fees	4,843	2,988
Interest expense	4,047
Net other loss (income)	(37)	(67)
Total Assets	$ 227,084	$ 67,448

Investment in Affiliates - Comb

Investment in Affiliates - Combined Balance Sheets (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Current Assets
Cash and cash equivalents	$ 150,146	$ 8,581
VAT receivable	318	213
Other current assets	3,879	552
Total current assets	155,752	18,455
Non-Current Assets
Property, plant and equipment, net	61	92
Total Assets	265,410	154,295
Current Liabilities
Total current liabilities	4,024	3,465
Owners' Capital
Paid-in capital	409,728	375,921
Accumulated deficit	(147,423)	(225,583)
Total shareholders' equity	261,386	149,391
Total Liabilities and shareholders' equity	265,410	154,295
Los Gatos Joint Venture ("LGJV")
Current Assets
Cash and cash equivalents	1,676	1,302
Receivables	3,988	5,655
Inventories	10,315	11,374
VAT receivable	50,732	50,184
Other current assets	2,891	1,672
Total current assets	69,602	70,187
Non-Current Assets
Mine development, net	202,874	182,602
Property, plant and equipment, net	196,942	216,131
Total noncurrent assets	399,816	398,733
Total Assets	469,418	468,920
Current Liabilities
Accounts payable and accrued liabilities	35,767	43,287
Related party payable	1,703	6,875
Accrued interest	101	885
Unearned revenue	3,276
Equipment loans	7,084	6,948
Dowa Term Loan	31,826
Working Capital Facility	60,000
Total current liabilities	139,757	57,995
Non-Current Liabilities
Dowa Term Loan	187,767	217,796
Working Capital Facility		60,000
Equipment loans	6,120	12,916
Reclamation obligations	12,162	11,314
Total noncurrent liabilities	206,049	302,026
Owners' Capital
Capital contributions	271,368	237,905
Paid-in capital	16,366	7,400
Accumulated deficit	(164,122)	(136,406)
Total shareholders' equity	123,612	108,899
Total Liabilities and shareholders' equity	$ 469,418	$ 468,920

Investment in Affiliates - Co_2

Investment in Affiliates - Combining Statement Of Loss (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Expenses
Exploration	$ 785	$ 923
General and administrative	7,765	2,903
Total expenses	8,580	3,860
Other (income) expense
Interest expense	4,047
Arrangement fee	4,843	2,988
Other (income) expense	(28)	(36)
Net loss	(40,441)	(37,818)
Los Gatos Joint Venture ("LGJV")
Investment in Affiliate
Sales	121,470	36,508
Expenses
Cost of sales	65,005	30,339
Royalties	2,148	184
Exploration	841	208
General and administrative	9,718	2,587
Depreciation, depletion and amortization	44,904	15,460
Other	3,416
Total expenses	126,032	48,778
Other (income) expense
Interest expense	12,484	5,107
Arrangement fee	8,888	3,524
Accretion expense	849	789
Other (income) expense	(109)	239
Foreign exchange loss	1,042	174
Other (income) expense	23,154	9,833
Net loss	$ (27,716)	$ (22,103)

Investment in Affiliates - Othe

Investment in Affiliates - Other disclosures (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Investment in Affiliate
Equity loss in affiliates	$ 17,585	$ 12,865
Los Gatos Joint Venture ("LGJV")
Investment in Affiliate
Equity loss in affiliates	(17,585)	$ 12,865
Advances to the joint venture	$ 17,227