Gatos Silver (GATO) 10-Q 9 Aug 21 2021 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2021	Aug. 02, 2021
Document and Entity Information
Entity Registrant Name	GATOS SILVER, INC.
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2021
Entity File Number	001-39649
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	27-2654848
Entity Address, Address Line One	8400 E. Crescent Parkway, Suite 600
Entity Address, City or Town	Greenwood Village
Entity Address State Or Province	CO
Entity Address, Postal Zip Code	80111
City Area Code	303
Local Phone Number	784-5350
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	GATO
Security Exchange Name	NYSE
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 Common Stock, Shares Outstanding		68,704,201
Entity Central Index Key	0001517006
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Current Assets
Cash and cash equivalents	$ 29,607	$ 150,146
Deferred financing costs	285
Related party receivables	5,102	1,727
Other current assets	2,190	3,879
Total current assets	37,184	155,752
Non-Current Assets
Investment in affiliates	247,326	109,597
Other non-current assets	48	61
Total Assets	284,558	265,410
Current Liabilities
Accounts payable and other accrued liabilities	3,781	4,024
Shareholders' Equity
Common Stock, $0.001 par value; 700,000,000 shares authorized; 59,774,201 and 59,183,076 shares outstanding as of June 30, 2021 and December 31, 2020	108	108
Paid-in capital	417,248	409,728
Accumulated deficit	(135,552)	(147,423)
Treasury stock, at cost, 144,589 shares as of June 30, 2021 and December 31, 2020	(1,027)	(1,027)
Total shareholders' equity	280,777	261,386
Total Liabilities and Shareholders' Equity	$ 284,558	$ 265,410

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2021	Dec. 31, 2020
CONDENSED CONSOLIDATED BALANCE SHEETS
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	700,000,000	700,000,000
Common stock, shares outstanding	59,774,201	59,183,076
Treasury stock, shares	144,589	144,589

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Expenses
Exploration		$ 694	$ 211	$ 918	$ 382
General and administrative		4,411	1,543	8,014	2,380
Amortization		7	9	14	17
Total expenses		5,112	1,763	8,946	2,779
Other (income) expense
Equity income (loss) in affiliates		18,291	(8,071)	20,992	(21,516)
Other income (loss)		312	(765)	(175)	(2,345)
Net other income (expense)		18,603	(8,836)	20,817	(23,861)
Net income (loss) from continuing operations		13,491	(10,599)	11,871	(26,640)
Net loss from discontinued operations			(1,545)		(3,325)
Net income (loss)		$ 13,491	$ (12,144)	$ 11,871	$ (29,965)
Basic
Continuing operations	[1]	$ 0.23	$ (0.26)	$ 0.20	$ (0.66)
Discontinued operations	[1]		(0.04)		(0.08)
Total	[1]	0.23	(0.30)	0.20	(0.74)
Diluted
Continuing operations	[1]	0.22	(0.26)	0.20	(0.66)
Discontinued operations	[1]		(0.04)		(0.08)
Total	[1]	$ 0.22	$ (0.30)	$ 0.20	$ (0.74)
Weighted average shares outstanding:
Basic (in shares)	[1]	59,747,048	40,506,144	59,611,062	40,505,611
Diluted (in shares)	[1]	60,623,496	40,506,144	60,420,811	40,505,611
[1]	Prior period results have been adjusted to reflect the two-for-one reverse split in October 2020.

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical)	1 Months Ended
	Oct. 31, 2020
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Reverse stock split ratio	0.5

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands		Common Stock	Treasury Stock	Paid-in Capital	Accumulated Deficit	Total
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
Stock-based compensation				1,031		1,031
DSU compensation				61		61
Net income (loss)					(17,821)	(17,821)
Balance at Mar. 31, 2020		$ 80	$ (1,027)	377,013	(243,404)	132,662
Balance (in shares) at Mar. 31, 2020	[1]	40,323,430	144,589
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
Net income (loss)						(29,965)
Balance at Jun. 30, 2020		$ 80	$ (1,027)	378,099	(255,548)	121,604
Balance (in shares) at Jun. 30, 2020	[1]	40,323,430	144,589
Balance at Mar. 31, 2020		$ 80	$ (1,027)	377,013	(243,404)	132,662
Balance (in shares) at Mar. 31, 2020	[1]	40,323,430	144,589
Stock-based compensation				1,086		1,086
Net income (loss)					(12,144)	(12,144)
Balance at Jun. 30, 2020		$ 80	$ (1,027)	378,099	(255,548)	121,604
Balance (in shares) at Jun. 30, 2020	[1]	40,323,430	144,589
Balance at Dec. 31, 2020		$ 108	$ (1,027)	409,728	(147,423)	261,386
Balance (in shares) at Dec. 31, 2020		59,183,076	144,589
Issuance of common stock				1,559		1,559
Number of shares issued		182,453
Stock-based compensation				1,078		1,078
DSUs converted to common stock (in shares)		43,523
Other				(262)		(262)
Net income (loss)					(1,620)	(1,620)
Balance at Mar. 31, 2021		$ 108	$ (1,027)	412,103	(149,043)	262,141
Balance (in shares) at Mar. 31, 2021		59,409,052	144,589
Balance at Dec. 31, 2020		$ 108	$ (1,027)	409,728	(147,423)	261,386
Balance (in shares) at Dec. 31, 2020		59,183,076	144,589
Net income (loss)						11,871
Balance at Jun. 30, 2021		$ 108	$ (1,027)	417,248	(135,552)	280,777
Balance (in shares) at Jun. 30, 2021		59,774,201	144,589
Balance at Mar. 31, 2021		$ 108	$ (1,027)	412,103	(149,043)	262,141
Balance (in shares) at Mar. 31, 2021		59,409,052	144,589
Issuance of common stock				2,662		2,662
Number of shares issued		331,497
Stock-based compensation				2,490		2,490
DSUs converted to common stock (in shares)		33,652
Other				(7)		(7)
Net income (loss)					13,491	13,491
Balance at Jun. 30, 2021		$ 108	$ (1,027)	$ 417,248	$ (135,552)	$ 280,777
Balance (in shares) at Jun. 30, 2021		59,774,201	144,589
[1]	Prior period results have been adjusted to reflect the two-for-one reverse split in October 2020.

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical)	1 Months Ended
	Oct. 31, 2020
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
Reverse stock split ratio	0.5

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2020USD ($)	Jun. 30, 2021USD ($)	Jun. 30, 2020USD ($)
OPERATING ACTIVITIES
Net income (loss)		$ 11,871	$ (29,965)
Plus Net loss from discontinued operations	$ 1,545		3,325
Adjustments to reconcile net income (loss) to net cash used by operating activities:
Amortization	9	14	17
Stock-based compensation expense		3,426	2,001
Equity (income) loss in affiliates		(20,992)	21,516
Changes in operating assets and liabilities:
Receivables from relatedparties		(3,375)	(3,333)
Accounts payable and other accrued liabilities		(528)	(766)
Other current assets		(1,689)	(70)
Operating cash flows from discontinued operations			(2,262)
Net cash used by operating activities		(7,895)	(9,537)
INVESTING ACTIVITIES
Investment in affiliates		(116,595)	(7,573)
Net cash used by investing activities		(116,595)	(7,573)
FINANCING ACTIVITIES
Relatedparty convertible notes			10,000
Financing costs		(269)	(588)
Issuance of common stock		4,221
Other		(1)	260
Financing cash flows from discontinued operations			307
Net cash provided by financing activities		3,951	9,979
Net decrease in cash and cash equivalents		(120,539)	(7,131)
Cash and cash equivalents, beginning of period		150,146	9,085
Cash and cash equivalents, end of period	1,954	29,607	1,954
Less cash of discontinued operations	380		380
Cash of continuing operations, end of period	$ 1,574	29,607	1,574
Supplemental disclosure of noncash transactions:
Deferred financing costs included in accrued liabilities		$ 284	149
Director compensation			$ 61

Description of Business

Description of Business	6 Months Ended
	Jun. 30, 2021
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 (“Servicios”). (collectively the “LGJV Entities”). Effective July 15, 2021, Servicios was merged with MPR. The LGJV completed an advanced definition 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 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 (as defined in Note 9 — Commitments, Contingencies and Guarantees) to equity. On March 11, 2021, the Company repurchased the 18.5% interest from Dowa. See Note 9 — Commitments, Contingencies and Guarantees for further discussion. As of June 30, 2021, the LGJV ownership is 70.0% Gatos Silver and 30.0% Dowa. On September 1, 2019, the LGJV commenced commercial production of its two concentrate products: a lead concentrate and a zinc concentrate. The LGJV’s lead and zinc concentrates are currently sold to third-party customers. The Company continues to perform additional definition drilling to further define and expand mineralization of the Cerro Los Gatos deposit, and is performing definition and exploratory drilling at the nearby Esther deposit. On December 5, 2020, the LGJV began the current infill and extension drilling program at the Cerro Los Gatos deposit. On May 7, 2021, the LGJV restarted drilling at the Esther zone. The Company’s other Mexico exploration efforts are conducted through its wholly-owned subsidiary, Minera Luz del Sol S. de R.L. de C.V. (“MLS”). In March 2021, MLS commenced a 5,400-meter exploration program on the Santa Valeria project, located approximately 15 kilometers from the Cerro Los Gatos deposit. Discontinued Operations In October 2020, the Company completed the distribution of its wholly-owned subsidiary, Silver Opportunity Partners LLC (“SOP”), and SOP has been presented as discontinued operations in the Company’s condensed consolidated financial statements. See Note 10 – Discontinued Operations for additional detail.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2021
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Basis of Consolidation and Presentation The financial statements represent the condensed consolidated financial position and results of operations of Gatos Silver, Inc. and its subsidiary, MLS. Unless the context otherwise requires, references to Gatos Silver or the Company mean Gatos Silver, Inc. and its consolidated subsidiary. 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 interim condensed consolidated financial statements. The interim condensed Summary of Significant Accounting Policies The consolidated financial statements for the year ended December 31, 2020, disclose those accounting policies considered significant in determining results of operations and financial position. There have been no material changes to, or in the application of, the accounting policies previously identified and described in the 2020 10-K. Recent Accounting Pronouncements On January 1, 2021, the Company adopted the provisions of Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842) and ASU No. 2019-12, Income Taxes (Topic 740). These provisions did not have a material impact on the financial statements. There have been no additional accounting pronouncements issued or adopted during the six months ended June 30, 2021, which are expected to have a material impact on the financial statements.

Property, Plant and Equipment,

Property, Plant and Equipment, net	6 Months Ended
	Jun. 30, 2021
Property, Plant and Equipment, net
Property, Plant and Equipment, net	3. 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. Santa Valeria Concession The Company 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.

Accounts Payable and Other Accr

Accounts Payable and Other Accrued Liabilities	6 Months Ended
	Jun. 30, 2021
Accounts Payable and Other Accrued Liabilities
Accounts Payable and Other Accrued Liabilities	4. Accounts Payable and Other Accrued Liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, ​ 2021 2020 Accounts payable ​ $ 369 ​ $ 560 Accrued expenses ​ 2,059 ​ 1,240 Accrued compensation ​ 1,093 ​ 1,964 Other ​ ​ 260 ​ ​ 260 Total accounts payable and other current liabilities ​ $ 3,781 ​ $ 4,024 ​

Related-Party Transactions

Related-Party Transactions	6 Months Ended
	Jun. 30, 2021
Related-Party Transactions
Related-Party Transactions	5. Related-Party Transactions LGJV The Company has a services agreement with the LGJV to provide certain consulting and administrative services. The Company earned $2,500 and $2,100 under this agreement for the six months ended June 30, 2021 and 2020, respectively. The Company did not receive any cash from the LGJV under this agreement for the six months ended June 30, 2021 and 2020. The Company had receivables under this agreement of $3,700 and $6,850 as of June 30, 2021 and 2020, respectively. The Company also incurs certain LGJV costs and provides short term advances that are reimbursed by the LGJV. SSMRC The Company has a Management Services Agreement with Sunshine Silver Mining & Refining Corporation (“SSMRC”) (formerly Silver Opportunity Partners Corporation), pursuant to which the Company provides certain limited executive and managerial advisory services to SSMRC until terminated by either party. SSMRC reimburses the Company for costs of such services. The Company earned $16 and nil from SSMRC under this agreement for the six months ended June 30, 2021 and 2020, respectively.

Net Income (Loss) per Share

Net Income (Loss) per Share	6 Months Ended
	Jun. 30, 2021
Net Income (Loss) per Share
Net Income (Loss) per Share	6. Net Income (Loss) per Share Basic net income (loss) per share is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is computed similarly, except that weighted average common shares is increased to reflect the potential dilution that would occur if stock options outstanding were exercised or converted into common stock. The dilutive effects are calculated using the treasury stock method. The computation of diluted earnings per common share excludes the effect of the assumed exercise of 1,391,236 stock options for the three and six months ended June 30, 2021, as the exercise price of these stock options was greater than the average market value of our common stock for those periods, resulting in an anti-dilutive effect. For the three and six months ended June 30, 2020, all stock options outstanding have been excluded from the dilutive earnings per share calculation as their effect would be anti-dilutive. A reconciliation of basic and diluted earnings per common share for the three and six months ended June 30, 2021 and 2020, are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, ​ Six Months Ended June 30, ​ 2021 2020 2021 2020 Net income (loss) ​ ​ ​ ​ Continuing operations ​ $ 13,491 ​ $ (10,599) ​ $ 11,871 ​ $ (26,640) Discontinued operations ​ — ​ (1,545) ​ — ​ (3,325) ​ ​ $ 13,491 ​ $ (12,144) ​ $ 11,871 ​ $ (29,965) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average shares: ​ ​ ​ ​ Basic ​ 59,747,048 ​ 40,506,144 ​ 59,611,062 ​ 40,505,611 Effect of dilutive stock options ​ 876,448 ​ — ​ 809,749 ​ — Diluted ​ 60,623,496 ​ 40,506,144 ​ 60,420,811 ​ 40,505,611 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) per share: ​ ​ ​ ​ Basic: ​ ​ ​ ​ Continuing operations ​ $ 0.23 ​ $ (0.26) ​ $ 0.20 ​ $ (0.66) Discontinued operations ​ — ​ (0.04) ​ — ​ (0.08) ​ ​ $ 0.23 ​ $ (0.30) ​ $ 0.20 ​ $ (0.74) Diluted: ​ ​ ​ ​ Continuing operations ​ $ 0.22 ​ $ (0.26) ​ $ 0.20 ​ $ (0.66) Discontinued operations ​ — ​ (0.04) ​ — ​ (0.08) ​ ​ $ 0.22 ​ $ (0.30) ​ $ 0.20 ​ $ (0.74) ​

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2021
Stockholders' Equity
Stockholders' Equity	7. 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. S The Company’s stock options have a contractual term of 10 years and entitle the holder to purchase shares of the Company’s common stock. The options granted to 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. The options granted to non-employee directors in June 2020 have a requisite service period of one year and vest in semi-annual installments. The Company granted 489,719 and 798,333 stock options during the six months ended June 30, 2021 and 2020, respectively. The weighted-average grant-date fair value per share was $9.53 and $6.76 for the six months ended June 30, 2021 and 2020, respectively. The Company received $4,221 from stock options exercised during the six months ended June 30, 2021. Total unrecognized stock-based compensation expense as of June 30, 2021, was $10,483 which is expected to be recognized over a weighted average period of 2.0 years. Stock option activity for the six months ended June 30, 2021, is summarized in the following tables: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ‑ ​ ​ ​ ​ Average Director and Employee Options Shares Exercise Price Outstanding at December 31, 2020 ​ 5,411,930 ​ $ 12.52 Granted 489,719 ​ $ 16.72 Exercised 513,950 ​ $ 8.21 Forfeited 15,000 ​ $ 7.00 Outstanding at June 30, 2021 5,372,699 ​ $ 13.33 Vested at June 30, 2021 3,070,896 ​ $ 15.63 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ‑ ​ ​ ​ ​ Average LGJV Personnel Options Shares Exercise Price Outstanding at December 31, 2020 ​ 43,676 ​ $ 7.23 Outstanding and vested at June 30, 2021 43,676 ​ $ 7.23 ​ 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 the director’s cessation of continuous service. The fair value of the DSUs are equal to the fair value of the Company’s common stock on the grant date. At June 30, 2021, there were 214,855 DSUs outstanding. The Company granted 109,316 and 5,103 DSUs during the six months ended June 30, 2021 and 2020, respectively. For the six months ended June 30, 2021, 77,175 DSUs were converted to common stock.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2021
Fair Value Measurements
Fair Value Measurements	8. 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 June 30, 2021, and December 31, 2020, the Company’s 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	6 Months Ended
	Jun. 30, 2021
Commitments, Contingencies and Guarantees
Commitments, Contingencies and Guarantees	9. Commitments, Contingencies and Guarantees In determining its accruals and disclosures with respect to loss contingencies, the Company will charge to income an estimated loss if information available prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. Legal expenses associated with the commitments and contingencies are expensed as incurred. If a loss contingency is not probable or reasonably estimable, disclosure of the loss contingency is made in the financial statements when it is at least reasonably possible that a material loss could be incurred. The Company’s mining and exploration activities are subject to various laws, regulations and permits governing the protection of the environment. These laws, regulations and permits are continually changing and are generally becoming more restrictive. The Company has made, and expects to make in the future, expenditures to comply with such laws, regulations and permits, but cannot predict the full amount of such future expenditures. In July 2017, the LGJV Entities entered into a loan agreement (the “Term Loan”) with Dowa whereby the LGJV Entities could borrow up to $210,000 for LGD development, with a maturity date of December 29, 2027. Interest on the Term Loan accrued daily at LIBOR plus 2.35% per annum, with the interest added to the amount borrowed until commencement of production. During 2018, the LGJV paid Dowa a $4,200 closing fee. Commencing June 30, 2021, repayment of the Term Loan in per annum of On July 26, 2021, the Term Loan was repaid in full through capital contributions made to the LGJV by the Company and Dowa in pro-rata amounts equal to their ownership in the LGJV of 70% and 30%, respectively. In conjunction with the repayment, the Company paid to Dowa a closing fee of $10,000 and the LGJV paid to Dowa a $1,585 fee. 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% per annum 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 Company’s 70% portion of the Dowa MPR Loan was not repaid in full on or before the due date, Dowa could elect to convert all or a portion of the principal amount into additional LGJV ownership at a favorable conversion rate. The Company contributed $18,200 to the LGJV in May 2019 to provide funding for a partial repayment of principal and interest related to the Dowa MPR Loan. In late May 2019, the Dowa MPR Loan was fully extinguished with a cash payment of $18,200 and the conversion of the remaining $50,737 of principal and interest. The conversion of the remaining principal and interest increased Dowa’s ownership in the LGJV entities by 18.5% to 48.5%. On March 11, 2021, the Company repurchased the 18.5% interest from Dowa, for a total consideration of $71,550, including Dowa holding costs of this incremental interest, increasing the Company’s ownership in the LGJV to 70.0%. These transactions resulted in a $47,400 higher basis than the underlying net assets of the LGJV Entities. This basis difference is being amortized over the LGJV Entities proven and probable reserves. 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 accrued daily at LIBOR plus 3.0% per annum and all outstanding principal and interest was to mature on June 28, 2021. The Company was 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. On March 11, 2021, the full $60,000 amount outstanding under the WCF was extinguished of which the Company’s pro-rata capital contribution to the LGJV was $42,000. As of June 30, 2021, the Company had guaranteed 70% of the outstanding principal and accrued interest of the Term Loan in the event of default by the LGJV. The Company guarantees the payment of all obligations, including accrued interest, under the LGJV equipment loan agreements. As of June 30, 2021, the LGJV had $9,617 outstanding under the LGJV equipment loan agreements, net of unamortized debt discount of $23, with varying maturity dates through August 2023.

Discontinued Operations

Discontinued Operations	6 Months Ended
	Jun. 30, 2021
Discontinued Operations
Discontinued Operations	10. Discontinued Operations In October 2020, the Company completed the distribution of its reportable U.S. segment, which was comprised of SOP. 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 initial public offering. 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 SSMRC. The results of operations for SOP have been reflected as discontinued operations in the condensed consolidated statement of operations for the three and six months ended June 30, 2020, and consist of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ June 30, 2020 June 30, 2020 Operating Expenses of Discontinued Operations ​ ​ ​ ​ ​ ​ Exploration $ 105 $ 216 Pre-development ​ ​ 532 ​ ​ 1,048 General and administrative ​ ​ 316 ​ ​ 877 Amortization ​ ​ 593 ​ ​ 1,186 Total expenses ​ 1,546 ​ 3,327 ​ ​ ​ ​ ​ ​ ​ Other Income of Discontinued Operations ​ ​ ​ ​ ​ ​ Other income ​ ​ (1) ​ ​ (2) Net loss of discontinued operations ​ $ 1,545 ​ $ 3,325 ​ The cash flow activity from discontinued operations for the six months ended June 30, 2020, have been reflected as discontinued operations in the condensed consolidated statement of cash flows for the six months ended June 30, 2020, and consist of the following: ​ ​ ​ ​ ​ ​ ​ June 30, ​ 2020 Discontinued Operating Activities ​ ​ ​ Net loss $ (3,325) Adjustments to reconcile net loss to net cash used by operating activities: ​ ​ ​ Amortization ​ ​ 1,186 Stock compensation expense ​ ​ 117 Accretion expense ​ 55 Changes in operating assets and liabilities: ​ ​ ​ Accounts payable and other accrued liabilities ​ ​ (304) Other current assets ​ ​ 9 Net cash used by operating activities of discontinued operations ​ ​ (2,262) Financing Activities of Discontinued Operations ​ ​ ​ PPP Loan proceeds ​ ​ 307 Net cash provided by financing activities of discontinued operations ​ ​ 307 ​

Segment Information

Segment Information	6 Months Ended
	Jun. 30, 2021
Segment Information
Segment Information	11. Segment Information The Company operates in a single industry as a corporation engaged in the acquisition, exploration and development of primarily 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 development and exploration on the Company’s Mexican mineral properties and includes the Company’s investment in the LGJV. Financial information relating to the Company’s segments is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, 2021 ​ Three Months Ended June 30, 2020 ​ Mexico Corporate Total Mexico Corporate Total Exploration ​ $ 694 ​ $ — ​ $ 694 ​ $ 211 ​ $ — ​ $ 211 General and administrative ​ 178 ​ 4,233 ​ 4,411 ​ 190 ​ 1,353 ​ 1,543 Amortization ​ — ​ 7 ​ 7 ​ — ​ 9 ​ 9 Equity income (loss) in affiliates ​ 18,291 ​ — ​ 18,291 ​ (8,071) ​ — ​ (8,071) Net other income (loss) ​ (5) ​ 317 ​ 312 ​ (13) ​ (752) ​ (765) Total assets ​ 59,679 ​ 224,879 ​ 284,558 ​ 34,346 ​ 71,646 ​ 105,991 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended June 30, 2021 ​ Six Months Ended June 30, 2020 ​ Mexico Corporate Total Mexico Corporate Total Exploration ​ $ 918 ​ $ — ​ $ 918 ​ $ 382 ​ $ — ​ $ 382 General and administrative ​ 332 ​ 7,682 ​ 8,014 ​ 252 ​ 2,128 ​ 2,380 Amortization ​ — ​ 14 ​ 14 ​ — ​ 17 ​ 17 Equity income (loss) in affiliates ​ 20,992 ​ — ​ 20,992 ​ (21,516) ​ — ​ (21,516) Net other income (loss) ​ (19) ​ (156) ​ (175) ​ (24) ​ (2,321) ​ (2,345) Total assets $ 59,679 $ 224,879 $ 284,558 $ 34,346 $ 71,646 $ 105,991 ​

Investment in Affiliate

Investment in Affiliate	6 Months Ended
	Jun. 30, 2021
Investment in Affiliate
Investment in Affiliate	12. Investment in Affiliate During the six months ended June 30, 2021 and 2020, the Company recognized $20,992 of income and a $21,516 loss, respectively, on its investment in the LGJV Entities, representing its ownership share of the LGJV Entities’ results. The equity income or loss in affiliate includes amortization of the carrying value of the investment in excess of the underlying net assets of the LGJV Entities. This basis difference is being amortized over the LGJV Entities’ proven and probable reserves. The LGJV Entities combined balance sheets as of June 30, 2021, and December 31, 2020, and the combined statements of income (loss) for the six months ended June 30, 2021 and 2020, are as follows: LOS GATOS JOINT VENTURE COMBINED BALANCE SHEETS (UNAUDITED) (in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, ​ 2021 2020 ASSETS ​ ​ Current Assets ​ ​ Cash and cash equivalents ​ $ 2,242 ​ $ 1,676 Receivables ​ 23,872 ​ 3,988 Inventories ​ 10,288 ​ 10,315 VAT receivable ​ 46,088 ​ 50,732 Other current assets ​ 5,502 ​ 2,891 Total current assets ​ 87,992 ​ 69,602 Non ‑ Current Assets ​ ​ ​ Mine development, net ​ 213,895 ​ 202,874 Property, plant and equipment, net ​ 192,206 ​ 196,942 Total non‑current assets ​ 406,101 ​ 399,816 Total Assets ​ $ 494,093 ​ $ 469,418 LIABILITIES AND OWNERS' CAPITAL ​ ​ Current Liabilities ​ ​ Accounts payable and accrued liabilities ​ $ 31,995 ​ $ 35,767 Related party payable ​ 5,118 ​ 1,703 Accrued interest ​ 159 ​ 101 Unearned revenue ​ 6,034 ​ 3,276 Equipment loans ​ 6,898 ​ 7,084 Dowa Term Loan ​ ​ 31,826 ​ ​ 31,826 Working Capital Facility ​ ​ — ​ ​ 60,000 Total current liabilities ​ 82,030 ​ 139,757 Non ‑ Current Liabilities ​ ​ Dowa Term Loan ​ 172,269 ​ 187,767 Equipment loans ​ 2,696 ​ 6,120 Reclamation obligations ​ 12,619 ​ 12,162 Total non‑current liabilities ​ 187,584 ​ 206,049 Owners' Capital ​ ​ ​ Capital contributions ​ 333,768 ​ 271,368 Paid‑in capital ​ 18,636 ​ 16,366 Accumulated deficit ​ (127,925) ​ (164,122) Total owners' capital ​ 224,479 ​ 123,612 Total Liabilities and Owners' Capital ​ $ 494,093 ​ $ 469,418 ​ LOS GATOS JOINT VENTURE COMBINED STATEMENTS OF INCOME (LOSS) (UNAUDITED) (in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ ​ June 30, ​ June 30, ​ 2021 2020 2021 2020 Sales ​ $ 75,005 ​ $ 18,247 ​ $ 121,335 ​ $ 37,160 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Expenses ​ ​ ​ ​ ​ ​ ​ ​ Cost of sales ​ 24,096 ​ 9,996 ​ 43,901 ​ 28,272 Royalties ​ 1,415 ​ (272) ​ 2,299 ​ 29 Exploration ​ 1,261 ​ 144 ​ 1,910 ​ 408 General and administrative ​ 2,833 ​ 1,905 ​ 6,079 ​ 4,650 Depreciation, depletion and amortization ​ 12,705 ​ 9,543 ​ 23,654 ​ 21,260 Other ​ — ​ 3,416 ​ — ​ 3,416 ​ ​ 42,310 ​ 24,732 ​ 77,843 ​ 58,035 Other (income) expense ​ ​ ​ ​ ​ ​ Interest expense ​ 2,356 ​ 3,390 ​ 4,473 ​ 6,943 Arrangement fee ​ 2,090 ​ 4,709 ​ 2,090 ​ 4,709 Accretion expense ​ 228 ​ 212 ​ 456 ​ 424 Other (income) expense ​ 11 ​ — ​ (19) ​ (108) Foreign exchange (gain) loss ​ (1,335) ​ (339) ​ 295 ​ 5,522 ​ ​ 3,350 ​ 7,972 ​ 7,295 ​ 17,490 Net Income (Loss) ​ $ 29,345 ​ $ (14,457) ​ $ 36,197 ​ $ (38,365) ​

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2021
Subsequent Events
Subsequent Events	13. Subsequent Events On July 12, 2021, the Company entered into a Revolving Credit Facility (the “Credit Agreement”) with Bank of Montreal. The Credit Agreement provides for a revolving line of credit in a principal amount of $50,000 and has an accordion feature which allows for an increase in the total line of credit up to $100,000, subject to certain conditions. The Credit Agreement matures on July 31, 2024. The Credit Agreement contains affirmative and negative covenants that are customary for credit agreements of this nature. The affirmative covenants consist of a leverage ratio, a liquidity covenant and an interest coverage ratio. The negative covenants include, among other things, limitations on asset sales, mergers, acquisitions, indebtedness, liens, dividends and distributions, investments and transactions with affiliates. Obligations under the Credit Agreement may be accelerated upon the occurrence of certain customary events of default. Loans under the Credit Agreement will bear interest at a rate equal to either the LIBOR rate plus a margin ranging from 3.00% to 4.00% or the U.S. Base Rate plus a margin ranging from 2.00% to 3.00%, as selected by the Company, in each case, with such margin determined in accordance with a pricing grid based upon the Company’s consolidated net leverage ratio as of the end of the applicable period. On July 19, 2021, the Company borrowed $13,000 under the Credit Agreement at a rate of LIBOR plus 3%. On July 19, 2021, the Company completed a follow-on public offering of 8,930,000 shares of common stock at a price of $14.00 per share, resulting in net proceeds of $118,894, after deducting underwriting discounts and commissions and expenses payable by us. The proceeds from the public offering, together with the funds borrowed under the Credit Agreement and cash on hand, were used to retire our 70% portion of the Dowa Term Loan at the LGJV effective July 26, 2021. ​

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2021
Summary of Significant Accounting Policies
Basis of Consolidation and Presentation and Summary of Significant Accounting Policies	Basis of Consolidation and Presentation The financial statements represent the condensed consolidated financial position and results of operations of Gatos Silver, Inc. and its subsidiary, MLS. Unless the context otherwise requires, references to Gatos Silver or the Company mean Gatos Silver, Inc. and its consolidated subsidiary. 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 interim condensed consolidated financial statements. The interim condensed Summary of Significant Accounting Policies The consolidated financial statements for the year ended December 31, 2020, disclose those accounting policies considered significant in determining results of operations and financial position. There have been no material changes to, or in the application of, the accounting policies previously identified and described in the 2020 10-K.
Recent Accounting Pronouncements	Recent Accounting Pronouncements On January 1, 2021, the Company adopted the provisions of Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842) and ASU No. 2019-12, Income Taxes (Topic 740). These provisions did not have a material impact on the financial statements. There have been no additional accounting pronouncements issued or adopted during the six months ended June 30, 2021, which are expected to have a material impact on the financial statements.

Accounts Payable and Other Ac_2

Accounts Payable and Other Accrued Liabilities (Tables)	6 Months Ended
	Jun. 30, 2021
Accounts Payable and Other Accrued Liabilities
Schedule of components of accounts payable and other accrued liabilities	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, ​ 2021 2020 Accounts payable ​ $ 369 ​ $ 560 Accrued expenses ​ 2,059 ​ 1,240 Accrued compensation ​ 1,093 ​ 1,964 Other ​ ​ 260 ​ ​ 260 Total accounts payable and other current liabilities ​ $ 3,781 ​ $ 4,024

Net Income (Loss) per Share (Ta

Net Income (Loss) per Share (Tables)	6 Months Ended
	Jun. 30, 2021
Net Income (Loss) per Share
Summary of reconciliation of basic and diluted earnings per common share	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, ​ Six Months Ended June 30, ​ 2021 2020 2021 2020 Net income (loss) ​ ​ ​ ​ Continuing operations ​ $ 13,491 ​ $ (10,599) ​ $ 11,871 ​ $ (26,640) Discontinued operations ​ — ​ (1,545) ​ — ​ (3,325) ​ ​ $ 13,491 ​ $ (12,144) ​ $ 11,871 ​ $ (29,965) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average shares: ​ ​ ​ ​ Basic ​ 59,747,048 ​ 40,506,144 ​ 59,611,062 ​ 40,505,611 Effect of dilutive stock options ​ 876,448 ​ — ​ 809,749 ​ — Diluted ​ 60,623,496 ​ 40,506,144 ​ 60,420,811 ​ 40,505,611 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) per share: ​ ​ ​ ​ Basic: ​ ​ ​ ​ Continuing operations ​ $ 0.23 ​ $ (0.26) ​ $ 0.20 ​ $ (0.66) Discontinued operations ​ — ​ (0.04) ​ — ​ (0.08) ​ ​ $ 0.23 ​ $ (0.30) ​ $ 0.20 ​ $ (0.74) Diluted: ​ ​ ​ ​ Continuing operations ​ $ 0.22 ​ $ (0.26) ​ $ 0.20 ​ $ (0.66) Discontinued operations ​ — ​ (0.04) ​ — ​ (0.08) ​ ​ $ 0.22 ​ $ (0.30) ​ $ 0.20 ​ $ (0.74)

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
	Jun. 30, 2021
Stockholders' Equity
Schedule of stock option activity	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ‑ ​ ​ ​ ​ Average Director and Employee Options Shares Exercise Price Outstanding at December 31, 2020 ​ 5,411,930 ​ $ 12.52 Granted 489,719 ​ $ 16.72 Exercised 513,950 ​ $ 8.21 Forfeited 15,000 ​ $ 7.00 Outstanding at June 30, 2021 5,372,699 ​ $ 13.33 Vested at June 30, 2021 3,070,896 ​ $ 15.63 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ‑ ​ ​ ​ ​ Average LGJV Personnel Options Shares Exercise Price Outstanding at December 31, 2020 ​ 43,676 ​ $ 7.23 Outstanding and vested at June 30, 2021 43,676 ​ $ 7.23 ​

Discontinued Operations (Tables

Discontinued Operations (Tables)	6 Months Ended
	Jun. 30, 2021
Discontinued Operations
Schedule of assets and liabilities, consolidated statement of operations and comprehensive loss and cash flow activity of discontinued operations	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ June 30, 2020 June 30, 2020 Operating Expenses of Discontinued Operations ​ ​ ​ ​ ​ ​ Exploration $ 105 $ 216 Pre-development ​ ​ 532 ​ ​ 1,048 General and administrative ​ ​ 316 ​ ​ 877 Amortization ​ ​ 593 ​ ​ 1,186 Total expenses ​ 1,546 ​ 3,327 ​ ​ ​ ​ ​ ​ ​ Other Income of Discontinued Operations ​ ​ ​ ​ ​ ​ Other income ​ ​ (1) ​ ​ (2) Net loss of discontinued operations ​ $ 1,545 ​ $ 3,325 ​ ​ ​ ​ ​ ​ ​ June 30, ​ 2020 Discontinued Operating Activities ​ ​ ​ Net loss $ (3,325) Adjustments to reconcile net loss to net cash used by operating activities: ​ ​ ​ Amortization ​ ​ 1,186 Stock compensation expense ​ ​ 117 Accretion expense ​ 55 Changes in operating assets and liabilities: ​ ​ ​ Accounts payable and other accrued liabilities ​ ​ (304) Other current assets ​ ​ 9 Net cash used by operating activities of discontinued operations ​ ​ (2,262) Financing Activities of Discontinued Operations ​ ​ ​ PPP Loan proceeds ​ ​ 307 Net cash provided by financing activities of discontinued operations ​ ​ 307

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 30, 2021
Segment Information
Schedule of segment information	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, 2021 ​ Three Months Ended June 30, 2020 ​ Mexico Corporate Total Mexico Corporate Total Exploration ​ $ 694 ​ $ — ​ $ 694 ​ $ 211 ​ $ — ​ $ 211 General and administrative ​ 178 ​ 4,233 ​ 4,411 ​ 190 ​ 1,353 ​ 1,543 Amortization ​ — ​ 7 ​ 7 ​ — ​ 9 ​ 9 Equity income (loss) in affiliates ​ 18,291 ​ — ​ 18,291 ​ (8,071) ​ — ​ (8,071) Net other income (loss) ​ (5) ​ 317 ​ 312 ​ (13) ​ (752) ​ (765) Total assets ​ 59,679 ​ 224,879 ​ 284,558 ​ 34,346 ​ 71,646 ​ 105,991 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended June 30, 2021 ​ Six Months Ended June 30, 2020 ​ Mexico Corporate Total Mexico Corporate Total Exploration ​ $ 918 ​ $ — ​ $ 918 ​ $ 382 ​ $ — ​ $ 382 General and administrative ​ 332 ​ 7,682 ​ 8,014 ​ 252 ​ 2,128 ​ 2,380 Amortization ​ — ​ 14 ​ 14 ​ — ​ 17 ​ 17 Equity income (loss) in affiliates ​ 20,992 ​ — ​ 20,992 ​ (21,516) ​ — ​ (21,516) Net other income (loss) ​ (19) ​ (156) ​ (175) ​ (24) ​ (2,321) ​ (2,345) Total assets $ 59,679 $ 224,879 $ 284,558 $ 34,346 $ 71,646 $ 105,991

Investment in Affiliate (Tables

Investment in Affiliate (Tables) - Los Gatos Joint Venture ("LGJV")	6 Months Ended
	Jun. 30, 2021
Investment in Affiliate
Schedule of combined balance sheets	LOS GATOS JOINT VENTURE COMBINED BALANCE SHEETS (UNAUDITED) (in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, ​ 2021 2020 ASSETS ​ ​ Current Assets ​ ​ Cash and cash equivalents ​ $ 2,242 ​ $ 1,676 Receivables ​ 23,872 ​ 3,988 Inventories ​ 10,288 ​ 10,315 VAT receivable ​ 46,088 ​ 50,732 Other current assets ​ 5,502 ​ 2,891 Total current assets ​ 87,992 ​ 69,602 Non ‑ Current Assets ​ ​ ​ Mine development, net ​ 213,895 ​ 202,874 Property, plant and equipment, net ​ 192,206 ​ 196,942 Total non‑current assets ​ 406,101 ​ 399,816 Total Assets ​ $ 494,093 ​ $ 469,418 LIABILITIES AND OWNERS' CAPITAL ​ ​ Current Liabilities ​ ​ Accounts payable and accrued liabilities ​ $ 31,995 ​ $ 35,767 Related party payable ​ 5,118 ​ 1,703 Accrued interest ​ 159 ​ 101 Unearned revenue ​ 6,034 ​ 3,276 Equipment loans ​ 6,898 ​ 7,084 Dowa Term Loan ​ ​ 31,826 ​ ​ 31,826 Working Capital Facility ​ ​ — ​ ​ 60,000 Total current liabilities ​ 82,030 ​ 139,757 Non ‑ Current Liabilities ​ ​ Dowa Term Loan ​ 172,269 ​ 187,767 Equipment loans ​ 2,696 ​ 6,120 Reclamation obligations ​ 12,619 ​ 12,162 Total non‑current liabilities ​ 187,584 ​ 206,049 Owners' Capital ​ ​ ​ Capital contributions ​ 333,768 ​ 271,368 Paid‑in capital ​ 18,636 ​ 16,366 Accumulated deficit ​ (127,925) ​ (164,122) Total owners' capital ​ 224,479 ​ 123,612 Total Liabilities and Owners' Capital ​ $ 494,093 ​ $ 469,418
Schedule of combined results of loss	LOS GATOS JOINT VENTURE COMBINED STATEMENTS OF INCOME (LOSS) (UNAUDITED) (in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ ​ June 30, ​ June 30, ​ 2021 2020 2021 2020 Sales ​ $ 75,005 ​ $ 18,247 ​ $ 121,335 ​ $ 37,160 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Expenses ​ ​ ​ ​ ​ ​ ​ ​ Cost of sales ​ 24,096 ​ 9,996 ​ 43,901 ​ 28,272 Royalties ​ 1,415 ​ (272) ​ 2,299 ​ 29 Exploration ​ 1,261 ​ 144 ​ 1,910 ​ 408 General and administrative ​ 2,833 ​ 1,905 ​ 6,079 ​ 4,650 Depreciation, depletion and amortization ​ 12,705 ​ 9,543 ​ 23,654 ​ 21,260 Other ​ — ​ 3,416 ​ — ​ 3,416 ​ ​ 42,310 ​ 24,732 ​ 77,843 ​ 58,035 Other (income) expense ​ ​ ​ ​ ​ ​ Interest expense ​ 2,356 ​ 3,390 ​ 4,473 ​ 6,943 Arrangement fee ​ 2,090 ​ 4,709 ​ 2,090 ​ 4,709 Accretion expense ​ 228 ​ 212 ​ 456 ​ 424 Other (income) expense ​ 11 ​ — ​ (19) ​ (108) Foreign exchange (gain) loss ​ (1,335) ​ (339) ​ 295 ​ 5,522 ​ ​ 3,350 ​ 7,972 ​ 7,295 ​ 17,490 Net Income (Loss) ​ $ 29,345 ​ $ (14,457) ​ $ 36,197 ​ $ (38,365)

Description of Business (Detail

Description of Business (Details) $ in Thousands	Mar. 11, 2021	Sep. 01, 2019product	Mar. 31, 2021m	May 31, 2019	Jun. 30, 2021	Apr. 01, 2016USD ($)
Minera Luz del Sol S. de R.L. de C.V.
Description of Business and Basis of Preparation of Financial Statements
Area of exploration program commenced (in meters) | m			5,400
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 repurchased	18.50%
Ownership interest (as a percent)				48.50%		30.00%

Property, Plant and Equipment_2

Property, Plant and Equipment, net (Details)	6 Months Ended
	Jun. 30, 2021
Property, Plant and Equipment, net
Royalty payments on net smelter returns (in percent)	1.00%

Accounts Payable and Other Ac_3

Accounts Payable and Other Accrued Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Accounts Payable and Other Accrued Liabilities
Accounts payable	$ 369	$ 560
Accrued expenses	2,059	1,240
Accrued compensation	1,093	1,964
Other	260	260
Total accounts payable and other accrued liabilities	$ 3,781	$ 4,024

Related-Party Transactions (Det

Related-Party Transactions (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Related-Party Transactions
Receivables from related party	$ 5,102		$ 1,727
Los Gatos Joint Venture ("LGJV")
Related-Party Transactions
Payments received from related party	2,500	$ 2,100
Receivables from related party	3,700	6,850
Silver Opportunity Partners Corporation
Related-Party Transactions
Revenue from Related Parties	$ 16	$ 0

Net Income (Loss) per Share (De

Net Income (Loss) per Share (Details)	6 Months Ended
	Jun. 30, 2021shares
Stock options
Net Income (Loss) per Share
Share excludes from computation of earnings per common share whose inclusion will resulting in an anti-dilutive effect	1,391,236

Net Income (Loss) per Share - R

Net Income (Loss) per Share - Reconciliation of Basic And Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended				6 Months Ended
		Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2021	Jun. 30, 2020
Net Income (Loss)
Continuing operations		$ 13,491		$ (10,599)		$ 11,871	$ (26,640)
Discontinued operations				(1,545)			(3,325)
Net income (loss)		$ 13,491	$ (1,620)	$ (12,144)	$ (17,821)	$ 11,871	$ (29,965)
Weighted average shares outstanding:
Basic	[1]	59,747,048		40,506,144		59,611,062	40,505,611
Effect of dilutive stock options		876,448				809,749
Diluted	[1]	60,623,496		40,506,144		60,420,811	40,505,611
Continuing operations, basic	[1]	$ 0.23		$ (0.26)		$ 0.20	$ (0.66)
Discontinued operations, basic	[1]			(0.04)			(0.08)
Total	[1]	0.23		(0.30)		0.20	(0.74)
Continuing operations, diluted	[1]	0.22		(0.26)		0.20	(0.66)
Discontinued operations, diluted	[1]			(0.04)			(0.08)
Total	[1]	$ 0.22		$ (0.30)		$ 0.20	$ (0.74)
[1]	Prior period results have been adjusted to reflect the two-for-one reverse split in October 2020.

Stockholders' Equity - Common S

Stockholders' Equity - Common Stock and Preferred Stock (Details) - $ / shares	Jun. 30, 2021	Dec. 31, 2020
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	50,000,000
Preferred stock, par value	$ 0.001	$ 0.001

Stockholders' Equity - Stock Op

Stockholders' Equity - Stock Option Transactions (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Stockholders' Equity
Stock options granted (in shares)	489,719	798,333
Value received from exercise of stock options	$ 4,221
Stock options
Stockholders' Equity
Contractual term of options	10 years
Weighted average grant date fair value of options per share	$ 9.53	$ 6.76
Total unrecognized stock based compensation expense	$ 10,483
Total unrecognized stock based compensation expense, recognition period	2 years
Stock options | Non-employee directors
Stockholders' Equity
Requisite service period for options	1 year
Stock options | Employees and LGJV personnel
Stockholders' Equity
Requisite service period for options	4 years

Stockholders' Equity - Stock _2

Stockholders' Equity - Stock option activity (Details) - $ / shares	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Shares
Granted	489,719	798,333
Stock options | LGJV
Shares
Outstanding at December 31, 2020	43,676
Outstanding at June 30, 2021	43,676
Weighted-Average Exercise Price
Outstanding at December 31, 2020	$ 7.23
Outstanding at June 30, 2021	$ 7.23
Stock options | Director and Employee
Shares
Outstanding at December 31, 2020	5,411,930
Granted	489,719
Exercised	513,950
Forfeited	15,000
Outstanding at June 30, 2021	5,372,699
Vested at June 30, 2021	3,070,896
Weighted-Average Exercise Price
Outstanding at December 31, 2020	$ 12.52
Granted	16.72
Exercised	8.21
Forfeited	7
Outstanding at June 30, 2021	13.33
Vested at June 30, 2021	$ 15.63

Stockholders' Equity - Deferred

Stockholders' Equity - Deferred Stock Unit Transactions (Details) - DSUs - shares	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Stockholders' Equity
Number of shares underlying that each unit entitles	1
Awards outstanding (in shares)	214,855
Awards granted (in shares)	109,316	5,103
Shares converted to common stock	77,175

Commitments, Contingencies an_2

Commitments, Contingencies and Guarantees (Details) $ in Thousands	Jul. 26, 2021USD ($)	Mar. 11, 2021USD ($)	May 30, 2019USD ($)	Jan. 23, 2018USD ($)	May 31, 2019USD ($)	Jul. 31, 2017USD ($)paymentD	Jun. 30, 2021USD ($)	Apr. 01, 2016
Los Gatos Joint Venture ("LGJV")
Commitments, Contingencies and Guarantees
Ownership percentage	70.00%
Los Gatos Joint Venture ("LGJV") | Dowa Metals and Mining Co., Ltd. ("Dowa") | Dowa MPR Loan
Commitments, Contingencies and Guarantees
Ownership percentage		70.00%
Los Gatos Joint Venture ("LGJV")
Commitments, Contingencies and Guarantees
Payments for closing fees	$ 10,000
Equity Method Investment, Ownership Percentage To Be Repurchased		18.50%
Funding contributed for a partial repayment of loan					$ 18,200
Ownership interest (as a percent)							70.00%
Consideration paid for ownership interest repurchased		$ 71,550
Los Gatos Joint Venture ("LGJV") | Dowa Metals and Mining Co., Ltd. ("Dowa")
Commitments, Contingencies and Guarantees
Increase in ownership interest through the conversion of loan to equity					18.50%
Los Gatos Joint Venture ("LGJV") | Dowa Metals and Mining Co., Ltd. ("Dowa") | Term loan
Commitments, Contingencies and Guarantees
Maximum borrowing capacity						$ 210,000
Payments for closing fees						$ 4,200
Number of consecutive semi annual equal payments commencing June 30, 2021 | payment						14
Arrangement fee (as a percent)						70.00%
Arrangement fee payment, number of business days | D						2
Percentage of excess cash flow used to determine amount of additional payments						70.00%
Outstanding balance							$ 206,870
Percentage of loan guaranteed by the company							70.00%
Los Gatos Joint Venture ("LGJV") | Dowa Metals and Mining Co., Ltd. ("Dowa") | Term loan | LIBOR
Commitments, Contingencies and Guarantees
Basis spread on variable rate (as a percent)						2.35%
Los Gatos Joint Venture ("LGJV") | Dowa Metals and Mining Co., Ltd. ("Dowa") | Dowa MPR Loan
Commitments, Contingencies and Guarantees
Maximum borrowing capacity				$ 65,700
Percentage of the joint venture loan for which the Company is responsible				70.00%
Principal and interest converted					$ 50,737
Repayment of debt					$ 18,200
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	$ 60,000
Arrangement fee (as a percent)			15.00%
Arrangement fee, Percentage of the average daily principal amount outstanding considered (as a percent)			70.00%
Company's pro-rata capital contribution		42,000
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") | Dowa Metals and Mining Co., Ltd. ("Dowa") | Equipment loan agreements
Commitments, Contingencies and Guarantees
Outstanding balance							$ 9,617
Unamortized debt discount							$ 23
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 percentage	30.00%
Dowa Metals and Mining Co., Ltd. ("Dowa") | Los Gatos Joint Venture ("LGJV") | Dowa MPR Loan
Commitments, Contingencies and Guarantees
Proven and probable reserves, basis difference		$ 47,400
Dowa Metals and Mining Co., Ltd. ("Dowa") | Los Gatos Joint Venture ("LGJV")
Commitments, Contingencies and Guarantees
Payments for closing fees	$ 1,585
Ownership interest (as a percent)					48.50%			30.00%
Increase in ownership interest through the conversion of loan to equity					18.50%
Ownership interest that was repurchased		18.50%
Dowa Metals and Mining Co., Ltd. ("Dowa") | Los Gatos Joint Venture ("LGJV") | Term loan
Commitments, Contingencies and Guarantees
Arrangement fee, percentage of outstanding principal balance considered (as a percent)						2.00%

Discontinued Operations - Resul

Discontinued Operations - Results of operations (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended	6 Months Ended
	Oct. 31, 2020	Jun. 30, 2020	Jun. 30, 2020
Other Income of Discontinued Operations
Net loss of discontinued operations		$ 1,545	$ 3,325
Silver Opportunity Partners Corporation
Discontinued Operations
Number of shares of SOP received by Company's stockholders	0.10594
Silver Opportunity Partners Corporation | Spin off
Operating Expenses of Discontinued Operations
Exploration		105	216
Pre-development		532	1,048
General and administrative		316	877
Amortization		593	1,186
Total expenses		1,546	3,327
Other Income of Discontinued Operations
Other income		(1)	(2)
Net loss of discontinued operations		$ 1,545	$ 3,325

Discontinued Operations - Cash

Discontinued Operations - Cash flow activity (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2020
Discontinued Operating Activities
Net loss from discontinued operations	$ (1,545)	$ (3,325)
Changes in operating assets and liabilities:
Net cash used by operating activities of discontinued operations		(2,262)
Financing Activities of Discontinued Operations
Net cash provided by financing activities of discontinued operations		307
Silver Opportunity Partners Corporation | Spin off
Discontinued Operating Activities
Net loss from discontinued operations	(1,545)	(3,325)
Adjustments to reconcile net loss to net cash used by operating activities:
Amortization	$ 593	1,186
Stock compensation expense		117
Accretion expense		55
Changes in operating assets and liabilities:
Accounts payable and other accrued liabilities		(304)
Other current assets		9
Net cash used by operating activities of discontinued operations		(2,262)
Financing Activities of Discontinued Operations
PPP Loan proceeds		307
Net cash provided by financing activities of discontinued operations		$ 307

Segment Information (Details)

Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Segment Information
Exploration	$ 694	$ 211	$ 918	$ 382
General and administrative	4,411	1,543	8,014	2,380
Amortization	7	9	14	17
Equity income (loss) in affiliates	18,291	(8,071)	20,992	(21,516)
Net other income (loss)	312	(765)	(175)	(2,345)
Total Assets	284,558	105,991	284,558	105,991	$ 265,410
Mexico
Segment Information
Exploration	694	211	918	382
General and administrative	178	190	332	252
Equity income (loss) in affiliates	18,291	(8,071)	20,992	(21,516)
Net other income (loss)	(5)	(13)	(19)	(24)
Total Assets	59,679	34,346	59,679	34,346
Corporate
Segment Information
General and administrative	4,233	1,353	7,682	2,128
Amortization	7	9	14	17
Net other income (loss)	317	(752)	(156)	(2,321)
Total Assets	$ 224,879	$ 71,646	$ 224,879	$ 71,646

Investment in Affiliate - Combi

Investment in Affiliate - Combined Balance Sheets (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019
Current Assets
Cash and cash equivalents	$ 29,607		$ 150,146
Other current assets	2,190		3,879
Total current assets	37,184		155,752
Non-Current Assets
Total Assets	284,558		265,410	$ 105,991
Owners' Capital
Paid-in capital	417,248		409,728
Accumulated deficit	(135,552)		(147,423)
Total shareholders' equity	280,777	$ 262,141	261,386	$ 121,604	$ 132,662	$ 149,391
Total Liabilities and Shareholders' Equity	284,558		265,410
Los Gatos Joint Venture ("LGJV")
Current Assets
Cash and cash equivalents	2,242		1,676
Receivables	23,872		3,988
Inventories	10,288		10,315
VAT receivable	46,088		50,732
Other current assets	5,502		2,891
Total current assets	87,992		69,602
Non-Current Assets
Mine development, net	213,895		202,874
Property, plant and equipment, net	192,206		196,942
Total noncurrent assets	406,101		399,816
Total Assets	494,093		469,418
Current Liabilities
Accounts payable and accrued liabilities	31,995		35,767
Related party payable	5,118		1,703
Accrued interest	159		101
Unearned revenue	6,034		3,276
Equipment loans	6,898		7,084
Dowa Term Loan	31,826		31,826
Working Capital Facility			60,000
Total current liabilities	82,030		139,757
Non-Current Liabilities
Dowa Term Loan	172,269		187,767
Equipment loans	2,696		6,120
Reclamation obligations	12,619		12,162
Total noncurrent liabilities	187,584		206,049
Owners' Capital
Capital contributions	333,768		271,368
Paid-in capital	18,636		16,366
Accumulated deficit	(127,925)		(164,122)
Total shareholders' equity	224,479		123,612
Total Liabilities and Shareholders' Equity	$ 494,093		$ 469,418

Investment in Affiliate - Com_2

Investment in Affiliate - Combining Statement of income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2021	Jun. 30, 2020
Expenses
Exploration	$ 694		$ 211		$ 918	$ 382
General and administrative	4,411		1,543		8,014	2,380
Total expenses	5,112		1,763		8,946	2,779
Other (income) expense
Other (income) expense	(312)		765		175	2,345
Net income (loss)	13,491	$ (1,620)	(12,144)	$ (17,821)	11,871	(29,965)
Income (Loss) from Equity Method Investments	18,291		(8,071)		20,992	(21,516)
Los Gatos Joint Venture ("LGJV")
Investment in Affiliate
Sales	75,005		18,247		121,335	37,160
Expenses
Cost of sales	24,096		9,996		43,901	28,272
Royalties	1,415		(272)		2,299	29
Exploration	1,261		144		1,910	408
General and administrative	2,833		1,905		6,079	4,650
Depreciation, depletion and amortization	12,705		9,543		23,654	21,260
Other			3,416			3,416
Total expenses	42,310		24,732		77,843	58,035
Other (income) expense
Interest expense	2,356		3,390		4,473	6,943
Arrangement fee	2,090		4,709		2,090	4,709
Accretion expense	228		212		456	424
Other (income) expense	11				(19)	(108)
Foreign exchange (gain) loss	(1,335)		(339)		295	5,522
Other (income) expense	3,350		7,972		7,295	17,490
Net income (loss)	$ 29,345		$ (14,457)		36,197	(38,365)
Income (Loss) from Equity Method Investments					$ 20,992	$ (21,516)

Subsequent Events (Details)

Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands	Jul. 26, 2021	Jul. 19, 2021	Jul. 12, 2021	Jun. 30, 2021
Subsequent Events
Proceeds from issuance of shares				$ 4,221
Subsequent events
Subsequent Events
Percentage of loan retired from share issuance proceeds	70.00%
Subsequent events | Revolving Credit Facility
Subsequent Events
Borrowing capacity			$ 50,000
Contingent increase, additional borrowing capacity			$ 100,000
Subsequent events | LIBOR | Revolving Credit Facility
Subsequent Events
Spread on variable rate		3.00%
Amount borrowed		$ 13,000
Subsequent events | LIBOR | Revolving Credit Facility | Minimum
Subsequent Events
Spread on variable rate			3.00%
Subsequent events | LIBOR | Revolving Credit Facility | Maximum
Subsequent Events
Spread on variable rate			4.00%
Subsequent events | Base Rate | Revolving Credit Facility | Minimum
Subsequent Events
Spread on variable rate			2.00%
Subsequent events | Base Rate | Revolving Credit Facility | Maximum
Subsequent Events
Spread on variable rate			3.00%
Subsequent events | Follow-on public offering
Subsequent Events
Number of shares issued		8,930,000
Price per share		$ 14
Proceeds from issuance of shares		$ 118,894