Cover
Cover | 12 Months Ended |
Dec. 31, 2021shares | |
Entity Addresses [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Period End Date | Dec. 31, 2021 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2021 |
Current Fiscal Year End Date | --12-31 |
Entity File Number | 333-182072 |
Entity Registrant Name | PATAGONIA GOLD CORP. |
Entity Central Index Key | 0001551206 |
Entity Incorporation, State or Country Code | A1 |
Entity Address, Address Line One | Av. Libertador 498 P.26 |
Entity Address, City or Town | C.A.B.A |
Entity Address, Country | AR |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | No |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | false |
Document Accounting Standard | International Financial Reporting Standards |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 466,566,441 |
Auditor Firm ID | 1390 |
Auditor Name | Grant Thornton LLP |
Auditor Location | Vancouver, Canada |
Business Contact [Member] | |
Entity Addresses [Line Items] | |
Entity Address, Address Line One | 2200 HSBC Building |
Entity Address, Address Line Two | 885 West Georgia Street |
Entity Address, City or Town | Vancouver |
Entity Address, State or Province | BC |
Entity Address, Postal Zip Code | V6C 3E8 |
City Area Code | 5411 |
Local Phone Number | 52786950 |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash | $ 291 | $ 819 |
Receivables | 2,512 | 2,041 |
Inventories | 3,759 | 3,289 |
Total current assets | 6,562 | 6,149 |
Non-current assets | ||
Mineral properties | 16,112 | 15,922 |
Mining rights | 17,145 | 17,195 |
Property, plant and equipment | 12,475 | 13,233 |
Goodwill | 4,009 | 4,009 |
Other financial assets | 15 | 16 |
Other receivables | 1,421 | 3,544 |
Total non-current assets | 51,177 | 53,919 |
Total assets | 57,739 | 60,068 |
Current liabilities | ||
Bank indebtedness | 6,706 | 9,636 |
Accounts payable and accrued liabilities | 6,859 | 4,384 |
Accounts payable with related parties | 208 | 144 |
Loan payable and current portion of long-term debt | 517 | 363 |
Total current liabilities | 14,290 | 14,527 |
Non-current liabilities | ||
Long-term debt | 255 | 109 |
Long-term debt with related parties | 15,507 | 14,808 |
Reclamation and remediation obligations | 6,188 | 5,139 |
Deferred tax liabilities | 3,795 | 4,023 |
Other long-term payables | 8 | 57 |
Total non-current liabilities | 25,753 | 24,136 |
Total liabilities | 40,043 | 38,663 |
Shareholders’ equity | ||
Capital stock | 11,244 | 7,320 |
Contributed surplus | 189,677 | 186,177 |
Accumulated deficit | (201,710) | (190,541) |
Accumulated other comprehensive income | 19,877 | 19,744 |
Total shareholders’ equity attributable to the parent | 19,088 | 22,700 |
Non-controlling interest | (1,392) | (1,295) |
Total shareholders’ equity | 17,696 | 21,405 |
Total liabilities and shareholders’ equity | $ 57,739 | $ 60,068 |
Consolidated Statements of Loss
Consolidated Statements of Loss and Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Profit or loss [abstract] | |||
Revenue | $ 18,104 | $ 19,849 | $ 21,938 |
Cost of sales | (13,559) | (13,247) | (17,138) |
Gross profit | 4,545 | 6,602 | 4,800 |
Operating expenses: | |||
Exploration expenses | (4,604) | (2,303) | (2,608) |
Repair and maintenance | (658) | ||
Impairment of mineral properties | (1,489) | (1,996) | |
Administrative expenses | (6,427) | (5,611) | (11,044) |
Share-based payments expense | (362) | (382) | (127) |
Interest expense | (1,436) | (2,100) | (2,131) |
Total operating expense: | (14,976) | (10,396) | (17,906) |
Other income/(expenses) | |||
Interest income | 221 | 125 | 191 |
Gain/(loss) on foreign exchange | (224) | (785) | 481 |
Accretion expense | (66) | (13) | (35) |
Write-down of other receivables | (2,323) | ||
Other income | 1,380 | 2,155 | |
Total other income/(expenses) | (1,012) | 1,482 | 637 |
Net loss – before income taxes | (11,443) | (2,312) | (12,469) |
Income tax benefit (expense) | 177 | (2,069) | 115 |
Net loss | (11,266) | (4,381) | (12,354) |
Attributable to non-controlling interest | (97) | 25 | (383) |
Attributable to equity share owners of the parent | (11,169) | (4,406) | (11,971) |
Other comprehensive income (loss) net of tax | |||
Change in fair value of investment | (1) | 8 | (28) |
Foreign currency translation adjustment | 134 | 1,350 | 374 |
Total other comprehensive income (loss) | 133 | 1,358 | 346 |
Total comprehensive loss | $ (11,133) | $ (3,023) | $ (12,008) |
Weighted average number of common shares outstanding – basic and diluted | 446,366,938 | 325,483,780 | 282,306,312 |
Net loss per share – basic and diluted | $ (0.025) | $ (0.013) | $ (0.044) |
Consolidated Statements of Chan
Consolidated Statements of Chanages in Equity - USD ($) $ in Thousands | Total | Issued capital [member] | Retained earnings [member] | Accumulated other comprehensive income [member] | Contributed Surplus [Member] | Equity attributable to owners of parent [member] | Non-controlling interests [member] |
Beginning balance at Dec. 31, 2018 | $ 23,382 | $ 301 | $ (174,164) | $ 18,040 | $ 180,142 | $ 24,319 | $ (937) |
IfrsStatementLineItems [Line Items] | |||||||
Shares issued in reverse acquisition | 2,287 | 2,287 | 2,287 | ||||
Net loss | (12,354) | (11,971) | (11,971) | (383) | |||
Other comprehensive income | 346 | 346 | 346 | ||||
Share based payments (note 19) | 127 | 127 | 127 | ||||
Ending balance at Dec. 31, 2019 | 13,788 | 2,588 | (186,135) | 18,386 | 180,269 | 15,108 | (1,320) |
IfrsStatementLineItems [Line Items] | |||||||
Shares repurchase under NCIB | (17) | (17) | (17) | ||||
Shares issued to settle debts (note 19) | 10,275 | 4,749 | 5,526 | 10,275 | |||
Net loss | (4,381) | (4,406) | (4,406) | 25 | |||
Other comprehensive income | 1,358 | 1,358 | 1,358 | ||||
Share based payments (note 19) | 382 | 382 | 382 | ||||
Ending balance at Dec. 31, 2020 | 21,405 | 7,320 | (190,541) | 19,744 | 186,177 | 22,700 | (1,295) |
IfrsStatementLineItems [Line Items] | |||||||
Shares repurchase under NCIB | (20) | (20) | (20) | ||||
Shares and warrants issued (note 19) | 7,408 | 4,270 | 3,138 | 7,408 | |||
Share and warrant issuance costs (note 19) | (326) | (188) | (138) | (326) | |||
Agent compensation options issued (note 19) | (138) | 138 | |||||
Net loss | (11,266) | (11,169) | (11,169) | (97) | |||
Other comprehensive income | 133 | 133 | 133 | ||||
Share based payments (note 19) | 362 | 362 | 362 | ||||
Ending balance at Dec. 31, 2021 | $ 17,696 | $ 11,244 | $ (201,710) | $ 19,877 | $ 189,677 | $ 19,088 | $ (1,392) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flow - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flow from operating activities | |||
Net loss | $ (11,266) | $ (4,381) | $ (12,354) |
Items not affecting cash | |||
Depreciation of property, plant and equipment | 2,346 | 2,639 | 3,028 |
Depletion of mineral properties | 1,272 | 477 | 3,456 |
Amortization of mining rights | 100 | 100 | 100 |
Share based payment expense | 362 | 382 | 127 |
Provisions | 983 | (677) | 2,419 |
Interest payable with related party | 699 | 593 | 255 |
Impairment of mineral properties | 1,489 | 1,996 | |
Write-down of inventory | 1,103 | 2,368 | |
Write-down of other receivables | 2,323 | ||
Accretion expense | 66 | 13 | 35 |
Gain on sale of asset | (336) | ||
Deferred tax expense/(benefit) | (177) | 2,069 | (115) |
Total adjustments | (1,036) | 1,215 | 1,315 |
Net change in non-cash working capital items | |||
(Increase)/decrease in receivables | (671) | (255) | 3,864 |
(Increase)/decrease in deferred tax assets | 1,793 | ||
(Increase)/decrease in inventory | (1,323) | 239 | 1,246 |
(Increase)/decrease in other financial assets | 310 | 28 | |
Increase/(decrease) in accounts payable and accrued liabilities | 2,471 | (1,505) | (3,124) |
Increase/(decrease) in accounts payable and accrued liabilities with related parties | 64 | 156 | 301 |
Increase/(decrease) in interest payable | (9) | ||
Increase/(decrease) in provision | (49) | 1 | (24) |
Increase/(decrease) in transaction taxes payable | (47) | (103) | (126) |
Total working capital adjustments | 445 | (1,157) | 3,949 |
Net cash provided by/(used in) operating activities | (591) | 58 | 5,264 |
Cash flows from investing activities | |||
Purchase of property, plant and equipment | (1,274) | (976) | (777) |
Purchase of mineral property | (2,951) | (942) | (2,926) |
Proceeds from disposal of property, plant and equipment | 337 | 417 | 189 |
Net cash used in investing activities | (3,888) | (1,501) | (3,514) |
Cash flow from financing activities | |||
Bank indebtedness (repayment) | (2,930) | (5,946) | 2,608 |
Proceeds from loans with related parties | 6,646 | 8,260 | |
Repayment of loans | (265) | (174) | (10,530) |
Shares repurchased under NCIB | (20) | (17) | |
Shares issued | 7,408 | ||
Share and warrant issuance costs | (326) | ||
Net cash provided by financing activities | 3,867 | 509 | 338 |
Net increase/(decrease) in cash | (612) | (934) | 2,088 |
Effect of foreign exchange on cash | 84 | 1,068 | (2,057) |
Cash, beginning of year | 819 | 685 | 654 |
Cash, end of the year | 291 | 819 | 685 |
Taxes paid | (47) | (103) | (126) |
Interest paid | (457) | (342) | (416) |
Supplemental non-cash information | |||
Shares issued to settle debts | 10,275 | ||
Change in value of investments | $ (1) | $ 8 | $ (28) |
Nature of business
Nature of business | 12 Months Ended |
Dec. 31, 2021 | |
Nature Of Business | |
Nature of business | 1. Nature of business On July 24, 2019, Patagonia Gold Corp. (PGDC.TSXV – “the Company” or “Patagonia”) [formerly Hunt Mining Corp (“Hunt”, or “Hunt Mining”)] and Patagonia Gold Limited (“PGL”) [formerly Patagonia Gold PLC (“PGP”)] completed a reverse acquisition (or reverse takeover, the “RTO”) resulting in Hunt acquiring all issued shares of common stock of PGP in exchange for common shares of Hunt on the basis of 10.76 Hunt shares for each PGP share 254,355,192 80% Patagonia is a mineral exploration and production company incorporated on January 10, 2006 under the laws of Alberta, Canada and, together with its subsidiaries, is engaged in the exploration of mineral properties and exploitation of reserves in Santa Cruz, Rio Negro and Chubut provinces of Argentina. The consolidated financial statements include the accounts of the following subsidiaries after elimination of intercompany transactions and balances: Schedule of subsidiaries Corporation Incorporation Percentage ownership Functional currency Business purpose Patagonia Gold S.A. (“PGSA”) Argentina 95.3 US$ Production and Exploration Stage Minera Minamalu S.A. Argentina 100 US$ Exploration Stage Huemules S.A. Argentina 100 US$ Exploration Stage Leleque Exploración S.A. Argentina 100 US$ Exploration Stage Patagonia Gold Limited (formerly Patagonia Gold PLC) UK 100 GBP$ Holding Minera Aquiline S.A.U. Argentina 100 US$ Exploration Stage Patagonia Gold Canada Inc. Canada 100 CAD$ Holding Patagonia Gold Chile S.C.M. Chile 100 CH$ Exploration Stage Ganadera Patagonia S.R.L. Argentina 100 US$ Land Holding 1272680 B.C. Ltd (formerly 1494716 Alberta Ltd.) Canada 100 CAD$ Nominee Shareholder The Company’s activities include the exploration for and production of minerals from properties in Argentina and Chile. On the basis of information to date, properties where it has not yet been determined if economically recoverable reserves exist are classified as exploration-stage. Properties where economically recoverable reserves exist and are being exploited are classified as production-stage. The underlying value of the mineral properties is entirely dependent upon the existence of reserves, the ability of the Company to obtain the necessary financing to complete development and upon future profitable production or a sale of these properties. On some properties, ongoing production and sales of gold and silver are being undertaken without established mineral resources or reserves and the Company has not established the economic viability of the operations. As a result, there is increased uncertainty and economic risks of failure associated with these production activities. Despite the sale of gold and silver, these projects remain in the exploration stage because management has not established proven or probable reserves required to be classified in either the development or production stage. |
Basis of presentation
Basis of presentation | 12 Months Ended |
Dec. 31, 2021 | |
Basis of presentation | 2. Basis of presentation Prior to the reverse acquisition, Patagonia Gold Limited prepared its December 31, 2018 annual consolidated financial statements in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). Upon the reverse acquisition with Patagonia Gold Corp, Patagonia Gold Limited became the ongoing entity for accounting purposes and Patagonia Gold Limited had to switch to reporting under US GAAP as Patagonia Gold Corp. is a registrant with the U.S. Securities and Exchange Commission (“SEC”). Effective June 30, 2020, the Company obtained “foreign private issuer” status in accordance with SEC guidelines and became eligible to satisfy its reporting requirements using IFRS. As such, the Company has prepared these consolidated financial statements in accordance with IFRS as issued by IASB. The consolidated financial statements were approved by the Company’s Board of Directors on April 28, 2022. Patagonia Gold Corp. Notes to the Consolidated Financial Statements For the Years Ended December 31, 2021, 2020 and 2019 (In thousands of U.S. dollars unless otherwise stated) These consolidated financial statements have been prepared on a historical cost basis except for certain financial instruments measured at fair value. In addition, these consolidated financial statements have been prepared using the accrual basis of accounting. The accounting policies applied in the consolidated financial statements are presented in note 4 and have been applied consistently in all periods presented in the consolidated financial statements, unless otherwise noted. These consolidated financial statements have been prepared on a historical cost basis except for certain financial instruments measured at fair value. In addition, these consolidated financial statements have been prepared using the accrual basis of accounting. The Company’s presentation currency is the US Dollar. The preparation of the consolidated financial statements require management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates. Judgments made by management in the application of IFRS that have a significant effect on the consolidated financial statements and estimates with significant risk of material adjustment in the current and following periods are discussed in note 4. Reclassification Certain amounts in the prior period consolidated statements of cash flows for the year ended December 31, 2020 and 2019 have been reclassified to conform with current period presentation. For the year ended December 31, 2020, the Company reclassified $ 593 35 58 1,202 509 For the year ended December 31, 2019, the Company reclassified $ 255 5,009 5,264 593 338 These reclassifications did not have any effect on the reported results of operations. 2. Going Concern |
Going concern
Going concern | 12 Months Ended |
Dec. 31, 2021 | |
Going concern | 3. Going concern The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. The Company’s ability to continue as a going concern is dependent upon, but not limited to, its ability to raise financing necessary to discharge its liabilities as they become due and generate positive cash flows from operations. During the year ended December 31, 2021, the Company had a net loss of $ 11,266 4,381 12,354 7,728 8,378 201,710 190,541 |
Significant accounting policies
Significant accounting policies and critical accounting judgements and estimates | 12 Months Ended |
Dec. 31, 2021 | |
Significant accounting policies and critical accounting judgements and estimates | 4. Significant accounting policies and critical accounting judgements and estimates The significant accounting policies used in the preparation of these consolidated financial statements are described below. (a) Basis of measurement The consolidated financial statements have been prepared under the historical cost convention, except for the revaluation of certain financial assets and financial liabilities to fair value. Patagonia Gold Corp. Notes to the Consolidated Financial Statements For the Years Ended December 31, 2021, 2020 and 2019 (In thousands of U.S. dollars unless otherwise stated) (b) Consolidation The Company’s consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany transactions, balances and unrealized gains or losses from intercompany transactions are eliminated on consolidation. (c) Foreign currency translation The functional currency for the Company and its subsidiaries is determined by the currency of the of the primary economic environment in which it operates. The Company’s functional currency is the Canadian dollar (“CAD”) and the Company’s subsidiaries have functional currencies in United States dollar (“USD”), Chilean Peso (“CH”) and Great Britain Pound (“GBP”). The consolidated financial statements are presented in United States dollars. Prior to January 1, 2019, the functional currency of Patagonia Gold S.A, Minera Minamalu S.A, Leleque Exploracion S.A, Huemules S.A. and Minera Aquiline Argentina S.A.U was the Argentine Peso and Argentina was designated as an hyperinflationary economy. In accordance with IAS 29, Financing Reporting in Hyperinflationary Economies (“IAS 29”), the financial statements of those subsidiaries had been restated after applying a general price index and translated to USD at closing rates before they were included in the consolidated financial statements. Management considered primary and secondary indicators in determining functionary currency including the currency that influences sales, purchases and other costs. Other indicators considered by management include the currency in which funds from financing activities were generated. Based on these indicators, management concluded that effective January 1, 2019, the functional currency of Patagonia Gold S.A, Minera Minamalu S.A, Leleque Exploracion S.A, Huemules S.A. and Minera Aquiline Argentina S.A.U became the USD. The change in functional currency for these subsidiaries has been applied prospectively. As these subsidiaries cease to have Argentine Peso as the functional currency, the Company has discontinued the preparation and presentation of the financial statements in accordance with IAS 29. The amounts expressed at the end of the December 31, 2018 reporting period have been treated as the basis for the carrying amounts effective January 1, 2019 and onwards. In preparing the financial statements of the individual entities, transactions in currencies other than the entity’s functional currency are recognized at the prevailing exchange rates at the date of the transactions. At the end of each reporting period, monetary assets and liabilities denominated in foreign currencies are translated at the rates of exchange prevailing at the reporting date. Non-monetary assets and liabilities are translated at the exchange rate prevailing at the transaction date. Transaction gains and losses resulting from fluctuations in currency exchange rates on transactions denominated in currencies other than the functional currency are recognized as incurred in net income. These financial statements are translated to their USD equivalents using the following methods: - Income and expenses on the statement of loss and comprehensive loss have been translated using the average exchange rates prevailing during the year; - Assets and liabilities have been translated using the exchange rate prevailing at the date of the statement of financial position; - Translation adjustments are recognized in other comprehensive income (loss). (d) Financial instruments Financial assets and financial liabilities are recognised when the Company becomes party to the contractual provisions of the financial instrument. Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, or when the financial asset and substantially all of risks and rewards are transferred. A financial liability is derecognised when it is extinguished, discharged, cancelled or expires. The Company classifies its financial assets into the following categories: those to be measured subsequently at fair value through other comprehensive income (FVOCI), fair value through profit and loss (FVTPL) and those to be held at amortized cost. Classification depends on the business model for managing the financial assets and the contractual terms of the cash flows. Generally, the Company does not acquire financial assets for the purpose of selling in the short term and does not have any financial assets measured at FVTPL in either the current or prior year. The Company’s business model is primarily that of “hold to collect” (where assets are held in order to collect contractual cash flows). See note 22 for the fair value disclosures. Patagonia Gold Corp. Notes to the Consolidated Financial Statements For the Years Ended December 31, 2021, 2020 and 2019 (In thousands of U.S. dollars unless otherwise stated) Financial assets held at amortized cost This classification applies to the Company’s cash and trade receivables, and other receivables which are held under a hold to collect business model and which have cash flows that meet the “solely payments of principal and interest” (SPPI) criteria. At initial recognition, trade and other receivables that do not have a significant financing component, are recognised at their transaction price. Other financial assets are initially recognised at fair value plus related transaction costs; they are subsequently measured at amortized cost using the effective interest method. Any gain or loss on derecognition or modification of a financial asset held at amortized cost is recognised in the consolidated statements of loss and comprehensive loss. Financial assets held at fair value through other comprehensive income (FVOCI) This classification applies to the Company’s other financial assets which includes equity investments and a performance bond (note 10). When these financial assets are derecognised, there is no reclassification of fair value gains or losses previously recognised in other comprehensive income. Impairment of financial assets A forward-looking expected credit loss (ECL) review is required for financial assets held at amortized cost. Recognition of credit losses is no longer dependent on the Company first identifying a credit loss event. The Company considers a broader range of information when assessing credit risk and measuring expected credit losses, including past events, current conditions, reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument. The Company applies the “simplified approach” to trade receivable balances with the exception of certain other receivables where general approach is applied, under which a loss allowance for lifetime expected credit losses is recognised for a financial instrument if there has been a significant increase in credit risk (measured using the lifetime probability of default) since initial recognition of the financial asset. The simplified approach in accounting for trade receivables records the loss allowance as lifetime expected credit losses. These are the expected shortfalls in contractual cash flows, considering the potential for default at any point during the life of the financial instrument. In calculating these losses, the Company uses its historical experience, external indicators and forward-looking information to calculate the expected credit losses. The general approach incorporates a review for any significant increase in counterparty credit risk since inception. Financial liabilities Financial liabilities are obligations to pay cash or other financial assets and are recognised when the Company becomes a party to the contractual provisions of the instrument. All financial liabilities are recorded initially at fair value, net of direct issue costs. Financial liabilities are recorded, subsequent to initial recognition, at amortized cost using the effective interest method, with interest-related charges recognised as an expense in finance cost in the consolidated statements of loss and comprehensive loss. Finance charges, including premiums payable on settlement or redemption and direct issue costs, are charged to the consolidated statements of loss and comprehensive loss on an accruals basis using the effective interest method and are added to the carrying amount of the instrument to the extent that they are not settled in the period in which they arise. (e) Cash and equivalents Cash and equivalents include cash on hand, deposits held with banks and other liquid short-term investments with original maturities of three months or less. The Company has no cash equivalents for all periods presented. (f) Inventories Inventory comprises, gold held on carbon, mineral concentrate and mineralized material stockpiles. They are physically measured or estimated and valued at the lower of cost or net realizable value. Net realizable value is the estimated future sales price of the product the Company expects to realize when the product is processed and sold, less estimated costs to complete production and bring the product to sale. Where the time value of money is material, these future prices and costs to complete are discounted. Stockpiles are measured by estimating the number of tonnes added and removed from the stockpile, the number of contained mineral ounces is based on assay data, and the estimated recovery percentage is based on the expected processing method. Stockpile tonnages are verified by periodic surveys. Patagonia Gold Corp. Notes to the Consolidated Financial Statements For the Years Ended December 31, 2021, 2020 and 2019 (In thousands of U.S. dollars unless otherwise stated) Cost of inventory is determined by using the weighted average method and comprises direct costs, depreciation, depletion and amortization as well as a portion of fixed and variable overhead costs incurred in converting materials into concentrate and ore, based on the normal production capacity. Materials and supplies are valued at the lower of cost or net realizable value. Any provision for obsolescence is determined by reference to specific items of stock. A regular review is undertaken to determine the extent of any provision for obsolescence. (g) Mineral properties and exploration and evaluation expenditures Exploration and evaluation costs are expensed until the determination of the technical feasibility and the commercial viability of the associated project. Exploration costs include costs directly related to exploration and evaluation activities in the areas of interest. The technical feasibility and commercial viability of extracting a mineral resource is considered to be determinable when economically recoverable reserves are determined to exist, the rights of tenure are current and it is considered probable that the costs will be recouped through successful development and exploitation of the area, or alternatively by sale of the property. This determination is normally evidenced by the completion of a technical feasibility study. Expenditures to develop new mines, to define further mineralization in mineral properties which are in the development or operating stage, and to expand the capacity of operating mines, are capitalized and amortized on a units-of-production basis over proven and probable reserves. Should a property be abandoned, its capitalized costs are charged to the consolidated statements of loss and comprehensive loss. The Company charges to the consolidated statements of loss and comprehensive loss the allocable portion of capitalized costs attributable to properties sold. Capitalized costs are allocated to properties sold based on the proportion of claims sold to the claims remaining within the project area. (h) Mining rights Mining rights are rights to explore and mine specified areas of land acquired from the landowner. Mining rights acquired for stated terms in excess of 10 years are capitalized as intangible assets and are measured initially at cost and amortized on a straight-line basis over the term of the rights. Mining rights acquired for undefined terms are capitalized as intangible assets and are measured initially at cost and amortized on a unit of production method over the estimated period of economically recoverable reserves. Amortization is charged to administrative expenses in the consolidated statements of loss and comprehensive loss. (i) Property, plant and equipment Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes expenditures that are directly attributable to the acquisition of an asset. Repairs and maintenance costs are charged to the consolidated statements of loss and comprehensive loss during the period in which they are incurred. Depreciation is calculated to amortize the cost of the property, plant and equipment over their estimated useful lives using the straight-line and unit of production methods. Office equipment, vehicles, machinery and equipment, Mina Martha processing plant, and buildings are stated at cost and depreciated straight line over an estimated useful life of 3 to 20 years. The Company allocates the amount initially recognized in respect of an item of property, plant and equipment to its significant parts and depreciates separately each such part. Residual values, method of depreciation and useful lives of the assets are reviewed annually and adjusted if appropriate. Gains and losses on disposals of property, plant and equipment are determined by comparing the proceeds with the carrying amount of the asset and are included as part of other gains or losses in the consolidated statements of loss and comprehensive loss. Patagonia Gold Corp. Notes to the Consolidated Financial Statements For the Years Ended December 31, 2021, 2020 and 2019 (In thousands of U.S. dollars unless otherwise stated) (j) Impairment of long-lived assets Long-lived assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount of assets is the greater of their fair value less costs to sell and value in use. Fair value is based on an estimate of the amount that the Company may obtain in a sale transaction on an arm’s length basis. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For an asset that does not generate cash inflows largely independent of those from other assets, the recoverable amount is determined for the cash generating unit (“CGU”) to which the asset belongs. The Company’s CGUs are the lowest level of identifiable groups of assets that generate cash inflows that are largely independent of the cash inflows from other assets or groups of assets. Where a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual CGUs, otherwise they are allocated to the smallest group of CGUs for which a reasonable and consistent allocation basis can be identified. Future cash flows are estimated based on estimated quantities of recoverable minerals, expected gold and silver (considering current and historical prices, trends and related factors), production levels, operating costs, capital requirements and reclamation costs, all based on life-of-mine plans. Existing proven and probable reserves and value beyond proven and probable reserves, including mineralization other than proven and probable reserves are included when determining the fair value of mine site asset groups at acquisition and, subsequently, in determining whether the assets are impaired. Estimates of recoverable minerals from exploration stage mineral interests are risk adjusted based on management’s relative confidence in such materials. The ability to achieve the estimated quantities of recoverable minerals from exploration stage mineral interests involves further risks in addition to those risk factors applicable to mineral interests where proven and probable reserves have been identified, due to the lower level of confidence that the identified mineralized material could ultimately be mined economically. Assets classified as exploration potential have the highest level of risk that the carrying value of the asset can be ultimately realized, due to the lower level of geological confidence and economic modeling. (k) Reclamation and remediation obligations The Company records a liability and corresponding asset for the present value of the estimated costs of legal and constructive obligations for future site reclamation and closure activities where the liability is more likely than not to exist and a reasonable estimate can be made of the obligation. Such costs arising from the decommissioning of plant and other site preparation work, discounted to their present values using a risk-free discount rate consistent with the timing of the expected costs, are provided for in full as soon as the obligation to incur such costs arises and can be quantified. On recognition of a full provision, an addition is made to property, plant and equipment of the same amount; this addition is then charged against profits on a unit of production basis over the life of the mine. Closure provisions are updated annually for changes in cost estimates as well as for changes to life of mine reserves, with the resulting adjustments made to both the provision balance and the net book value of the associated non-current asset. The obligation is subsequently adjusted at each period to reflect the passage of time (accretion expense) and changes in the estimated future costs of the underlying obligation. The Argentine mining regulations require that mine properties be restored in accordance with specified standards and an approved reclamation plan. Significant reclamation activities include reclaiming refuse and slurry ponds, reclaiming the pit and support acreage at surface mines, and sealing portals at deep mines. The Company accrues for the cost of final mine closure reclamation over the estimated useful mining life of the property. At each period, the Company reviews the entire reclamation liability and makes necessary adjustments for revisions to cost estimates to reflect current experience. (l) Income taxes The income tax expense or benefit consists of current and deferred components. Current tax is calculated using tax rates and laws that were enacted or substantively enacted at the statement of financial position date in each of the jurisdictions. Deferred tax is recognized in respect of temporary differences between the carrying amount of assets and liabilities in the consolidated statement of financial position and the corresponding tax bases used in the computation of taxable profit. Deferred tax is calculated based on the expected manner of realization or settlement of the carrying amount of assets and liabilities, using tax rates that are expected to apply in the year of realization or settlement based on tax rates and laws enacted or substantively enacted at the statement of financial position date. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax liabilities are not recognized on temporary differences that arise from goodwill which is not deductible for tax purposes. Patagonia Gold Corp. Notes to the Consolidated Financial Statements For the Years Ended December 31, 2021, 2020 and 2019 (In thousands of U.S. dollars unless otherwise stated) Deferred tax assets are recognized for all deductible temporary differences, carryforward of unused tax credits and unused tax losses to the extent it is probable future taxable profits will be available against which they can be utilized. The carrying amount of deferred tax assets is reviewed at each statement of financial position date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax assets and liabilities are not recognized in respect of temporary differences that arise on initial recognition of assets and liabilities acquired other than in a business combination. Deferred tax assets and liabilities are offset where they relate to income taxes levied by the same taxation authority and the Company has the legal right and intent to offset. The Company operates in multiple jurisdictions which involves dealing with uncertainties and judgments in the application of complex tax regulations. The final taxes paid or recovered are dependent upon many factors including resolutions arising from federal and state audits. The Company changes its tax assets and liabilities in light of the changing facts and circumstances but due to the complexity of the uncertainties in the tax regulations, the ultimate tax liability or asset could be materially different from the Company’s estimate recorded in the consolidated financial statements. (m) Share-based payments The Company offers a share option plan for its directors, officers, employees and consultants. Share options granted to employees and directors are categorised as equity-settled share-based payments. Equity-settled share-based payments are measured at the fair value of goods or services received when the fair value can be reliably estimated. If the fair value of goods and services received cannot be reliably measured, then the fair value of the instrument issued is measured using an appropriate option pricing model at the grant date. For share options granted to directors, officers and employees, the fair value of the options is measured using the Black-Scholes option pricing model. All equity-settled share-based payments are ultimately recognised as an expense in the consolidated statements of loss and comprehensive loss with a corresponding increase to contributed surplus. If vesting periods or other non-market vesting conditions apply, the expense is allocated over the vesting period, based on the best available estimate of the number of share options expected to vest. Estimates are subsequently revised if there is any indication that the number of share options expected to vest differs from previous estimates. Any cumulative adjustment prior to vesting is recognised in the current period. No adjustment is made to any expense recognised in prior periods if share options ultimately exercised are different to that estimated on vesting. Equity-settled share-based payment transactions with parties other than employees are measured at the fair value of the goods and services received, except where that fair value cannot be estimated reliably, in which case they are measured at the fair value of the equity instruments granted, measured at the date the entity obtains the goods or the counterparty renders the service. (n) Earnings (loss) per share The calculation of earnings (loss) per share (“EPS”) is based on the weighted average number of shares outstanding for each period. The basic EPS is calculated by dividing the income or loss attributable to the equity owners of the Company by the weighted average number of common shares outstanding during the period. The computation of diluted EPS assumes the conversion, exercise or contingent issuance of securities only when such conversion, exercise or issuance would have a dilutive effect on the earnings per share. The treasury stock method is used to determine the dilutive effect of the warrants and share options. When the Company reports a loss, the diluted net loss per common share is equal to the basic net loss per common share due to the anti-dilutive effect of the outstanding warrants and share options. (o) Revenue recognition The Company recognizes sales revenue in accordance with IFRS 15 when it has satisfied the following criteria: - The Company and the customer have an identifiable contract and are committed to perform their respective obligations; - The Company and the customer can identify each other’s rights regarding the goods to be transferred; - The Company can identify the payment terms for the goods to be transferred; Patagonia Gold Corp. Notes to the Consolidated Financial Statements For the Years Ended December 31, 2021, 2020 and 2019 (In thousands of U.S. dollars unless otherwise stated) - The risk, timing or amount of the Company’s future cashflows is expected to change as a result of the contract; - It is probable that the Company will collect the consideration to which it will be entitled in exchange for the goods that will be transferred to the customer. The Company produces doré and concentrate that is shipped to third-party refiners and smelters, respectively, for processing. The Company enters into contracts to sell its metal to third-party customers which may include the refiners and smelters that process the doré and concentrate. The Company’s performance obligation in these transactions is generally the transfer of metal to the customer. In the case of doré shipments, the Company generally sells refined metal at market prices agreed upon by both parties. The Company also has the right, but not the obligation, to sell a portion of the anticipated refined metal in advance of being fully refined. When the Company sells refined metal or advanced metal, the performance obligation is satisfied when the metal is delivered to the customer. Revenue and Cost of Sales are recorded on a gross basis under these contracts at the time the performance obligation is satisfied. (p) Segment reporting In accordance with IFRS 8 the management approach is used to identify operating segments. An operating segment is a component of an entity (i) that engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of the same entity), (ii) whose operating results are regularly reviewed by the entity’s management, and (iii) for which discrete financial information is available. The Company has identified its reportable segments on the basis of their geographic location. As a result, the Company discloses information geographically based on the location of each of its operations and within Argentina on the basis of operating mines and projects under construction. No operating segments have been aggregated to form the above reportable operating segments. Management monitors the operating results of its business units separately for the purpose of making decisions about resource allocation and performance assessment. (q) Business combinations A business combination is defined as an acquisition of assets and liabilities that constitute a business. A business is an integrated set of activities and assets that consist of inputs, including non-current assets, and processes, including operational processes, that when applied to those inputs have the ability to create outputs that provide a return to the Company and its shareholders. A business also includes those assets and liabilities that do not necessarily have all the inputs and processes required to produce outputs, but can be integrated with the inputs and processes of the Company to create outputs. When acquiring a set of activities or assets in the exploration and development stage, which may not have outputs, the Company considers other factors to determine whether the set of activities or assets is a business. Business combinations are accounted for using the acquisition method whereby identifiable assets acquired and liabilities assumed, including contingent liabilities, are recorded at their fair values at the acquisition date. The acquisition date is the date at which the Company obtains control over the acquiree, which is generally the date that consideration is transferred and the Company acquires the assets and assumes the liabilities of the acquiree. The consideration transferred in a business combination is measured at fair value, which is calculated as the sum of the fair values of the assets at the acquisition date transferred by the Company, the liabilities, including contingent consideration, incurred and payable by the Company to former owners of the acquiree and the equity interests issued by the Company. When the cost of the acquisition exceeds the fair value of the identifiable assets acquired and liabilities assumed, the difference is recognized as goodwill. Acquisition related costs are expensed as incurred. When a subsidiary is acquired, the fair value of its identifiable assets and liabilities are finalised within 12 months of the acquisition date. All fair value adjustments are recorded with effect from the date of acquisition and consequently may result in the restatement of previously reported financial results. (r) Goodwill Under the acquisition method of accounting, the costs of business combinations are allocated to the assets acquired and liabilities assumed based on the estimated fair value at the date of acquisition. The excess of the fair value of consideration paid over the fair value of the identifiable net assets acquired is recorded as goodwill. Goodwill is not amortized; instead it is tested for impairment in the fourth quarter and also when there is an indicator of impairment. At the date of acquisition, goodwill is assigned to the CGU or group of CGUs that is expected to benefit from the synergies of the business combination. Patagonia Gold Corp. Notes to the Consolidated Financial Statements For the Years Ended December 31, 2021, 2020 and 2019 (In thousands of U.S. dollars unless otherwise stated) The Company identifies any potential impairment by comparing the carrying value of a CGU or group of CGUs to its recoverable amount. The recoverable amount of a CGU or group of CGUs is the higher of its fair value less costs of disposal and its value in use. Both fair value less costs of disposal and value in use are based on estimates of discounted future cash flows or other valuation methods. Cash flows are projected based on past experience, actual operating results and business plans. When the recoverable amount of a CGU or group of CGUs is less than its carrying value, the recoverable amount is determined for its identifiable assets and liabilities. The excess of the recoverable amount of the CGU or group of CGUs over the total of the amounts assigned to its assets and liabilities is the recoverable amount of goodwill. An impairment charge is recognized for any excess of the carrying value of goodwill over its recoverable amount. Goodwill impairment charges are not reversible. (s) Equity Capital stock represents the proceeds received on the issuance of common shares. Proceeds from unit placements are allocated between common shares and warrants using the relative fair value method. The fair value of the Company’s common shares is determined using the closing trading price on the date of issuance, and the fair value of the warrants is determined using the Black-Scholes option-pricing model. The proceeds allocated to warrants are recorded in contributed surplus. Costs directly attributable to the issuance of shares and warrants are treated as a reduction in capital stock and warrants on a pro-rata basis. (t) New accounting standards issued but not yet effective The IASB issued an amendment to IAS 16, Property, Plant and Equipment, to prohibit the deducting from property, plant and equipment amounts received from selling items produced while preparing an asset for its intended use. Instead, sales proceeds and its related costs must be recognized in profit or loss. The amendment will require companies to distinguish between costs associated with producing and selling items before the item of property, plant and equipment is available for use and costs associated with making the item of property, plant and equipment available for its intended use. The a |
Critical accounting judgments a
Critical accounting judgments and estimates | 12 Months Ended |
Dec. 31, 2021 | |
Critical accounting judgments and estimates | 5. Critical accounting judgments and estimates (a) Significant judgments Preparation of the consolidated financial statements requires management to make judgments in applying the Company’s accounting policies. Judgments that have the most significant effect on the amounts recognized in these consolidated financial statements relate to functional currency, income taxes, title to mineral property interests, impairment of mineral properties and provisions and reclamation and closure cost obligations. These judgments have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. Functional currency Management determines the functional currency for each entity. This requires that management assess the primary economic environment in which each of these entities operates. Management’s determination of functional currencies affects how the Company translates foreign currency balances and transactions. Determination includes an assessment of various indicators. In determining the functional currency of the Company’s operations in Canada (Canadian dollar), UK (British Pound), Chile (Chilean Peso) and Argentina (U.S. dollar), management considered the indicators of IAS 21 The Effects of Changes in Foreign Exchange. Patagonia Gold Corp. Notes to the Consolidated Financial Statements For the Years Ended December 31, 2021, 2020 and 2019 (In thousands of U.S. dollars unless otherwise stated) Income taxes and taxes receivable Significant judgment is required in determining the provision for income taxes. There are many transactions and calculations undertaken during the ordinary course of business for which the ultimate tax determination is uncertain and subject to judgment. The Company recognizes liabilities and contingencies for anticipated tax audit issues based on the Company’s current understanding of the tax law in the various jurisdictions in which it operates. For matters where it is probable that an adjustment will be made, the Company records its best estimate of the tax liability including the related interest and penalties in the current tax provision. Management believes they have adequately provided for the probable outcome of these matters; however, the final outcome may result in a materially different outcome than the amount included in the tax liabilities. The Company has receivables due from the Argentinean government for value-added taxes. Significant estimates and judgments are involved in the assessment of recoverability of these receivables. Changes in management’s impairment assumptions may result in an additional impairment provision, or a reduction to any previously recorded impairment provision, with the impact recorded in profit or loss. The Company has accrued deferred income tax assets but may not be able to utilize part or all of these assets in the future. The Company only recognizes the expected future tax benefit from these assets if it is considered more likely than not that the tax benefit will be realized. Otherwise, a valuation allowance is applied against deferred tax assets that are not more likely than not to be utilized. Assessing the recoverability of deferred tax assets requires management to make significant estimates related to expectations of future taxable income, including application of existing tax laws in each jurisdiction, assumptions about future metals prices, the macroeconomic environment and results of the Company’s operations. To the extent that future cash flows and taxable income differ significantly from estimates, the Company’s ability to realize deferred tax assets could be impacted. Additionally, future changes in tax laws could limit the ability to obtain the future benefits represented by the deferred tax assets. Title to mineral property interests Although the Company has taken steps to verify title to mineral properties in which it has an interest, these procedures do not guarantee the Company’s title. Such properties may be subject to prior agreements or transfers and title may be affected by undetected defects. Impairment of mineral properties The Company is required to make certain judgments in assessing indicators of impairment of mineral properties. Judgment is required to determine if the right to explore will expire in the near future or is not expected to be renewed. Judgment is required to determine whether substantive expenditures on further exploration for and evaluation of mineral resources in specific areas will not be planned or budgeted. Judgment is required to determine if the exploration for and evaluation of mineral resources in specific areas have not led to the commercially viable quantities of mineral resources and the Company will discontinue such activities. Judgment is required to determine whether there are indications that the carrying amount of a mineral property is unlikely to be recovered in full from successful development of the project or by sale. (b) Use of estimates The preparation of these consolidated financial statements in conformity with IFRS requires the Company 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 these consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The Company also makes estimates and assumptions concerning the future. The determination of estimates requires the exercise of judgment based on various assumptions and other factors such as historical experience and current and expected economic conditions. Actual results could differ from those estimates. The more significant areas requiring the use of management estimates and assumptions relate to mineral reserves, share-based payments, provisions, inventories and the allocation of fair value to assets and liabilities assumed in connection with business combinations. These estimates have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. The Company is also exposed to legal risk. The outcome of currently pending and future proceedings cannot be predicted with certainty. Thus, an adverse decision in a lawsuit could result in additional costs that are not covered, either wholly or partly, under insurance policies and that could significantly influence the business and results of operations. Patagonia Gold Corp. Notes to the Consolidated Financial Statements For the Years Ended December 31, 2021, 2020 and 2019 (In thousands of U.S. dollars unless otherwise stated) Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Mineral reserves The Company uses estimates and assumptions related to mineral reserves that are the basis for future cash flow estimates utilized in impairment calculations and units-of production amortization calculations, environmental, reclamation and closure obligations and estimates of recoverable silver and gold in inventories. The Company relies on their technical personnel and independent mining consultants to determine the estimates of mineral reserves. Mineral reserve estimates are based upon engineering evaluations of samplings of drill holes and other openings. Share-based payments The Company determines fair value of stock options issued using the Black-Scholes option-pricing model which requires the input of highly subjective assumptions. These assumptions include estimating the future volatility of the stock price, risk-free rate and future employee turnover rates. While management believes that the estimates and assumptions are reasonable, actual results could differ from those estimates. Warrants The Company determines fair value of warrants issued using the Black-Scholes option-pricing model which requires the input of highly subjective assumptions. These assumptions include estimating the future volatility of the stock price. While management believes that the estimates and assumptions are reasonable, actual results could differ from those estimates. Provisions The Company assesses its provision for reclamation and remediation obligations on an annual basis or when new material information becomes available. Mining and exploration activities are subject to various laws and regulations governing the protection of the environment. In general, these laws and regulations are continually changing and the Company has made, and intends to make in the future, expenditures to comply with such laws and regulations. Accounting for reclamation and remediation obligations requires management to make estimates of the future costs the Company will incur to complete the reclamation and remediation work required to comply with existing laws and regulations at each mining operation. Actual costs incurred may differ from those amounts estimated. Also, future changes to environmental laws and regulations could increase the extent of reclamation and remediation work required to be performed by the Company. Increases in future costs could materially impact the amounts charged to operations for reclamation and remediation. The provision represents management’s best estimate of the present value of the future reclamation and remediation obligation. The actual future expenditures may differ from the amounts currently provided. Inventories The measurement of inventories including the determination of its net realizable value involves the use of estimates. Net realizable value is determined with reference to relevant market prices less applicable selling expenses. Estimation is also required in determining the tonnage, recoverable gold and sliver, and in determining the remaining costs of completion to bring inventory into its saleable form. Judgment also exists in determining whether to recognize a provision for obsolescence on materials and supplies included in inventories, and estimates are required to determine salvage value. Estimates of recoverable gold or silver on the leach pads are calculated from the quantities of ore placed on the leach pads, the grade of ore placed on the leach pads and a recovery percentage. Business combinations The acquisition method of accounting for business combinations in accordance with IFRS 3 requires management to determine the fair value of assets acquired and liabilities assumed on the date of the acquisition. In determining and allocating the fair values of assets and liabilities in a business combination, the Company relies on appraisals, internal valuations based on discounted cash flow, historical experience and other reliable information available as of the date of the acquisition. Patagonia Gold Corp. Notes to the Consolidated Financial Statements For the Years Ended December 31, 2021, 2020 and 2019 (In thousands of U.S. dollars unless otherwise stated) |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2021 | |
Schedule Of Inventories | |
Inventories | 6. Inventories Schedule of inventories December 31, 2021 December 31, 2020 $’000 $’000 Gold held on carbon $ 1,669 $ 1,421 Materials and supplies 2,090 1,868 Inventories $ 3,759 $ 3,289 During the year ended December 31, 2021, the net realizable value of the inventory was less than the costs incurred in establishing the gold held on carbon and the Company recorded an inventory write down of $ 1,103 Nil 2,368 During the year ended December 31, 2021, the Company expensed $ 9,927 8,789 10,890 |
Mineral properties
Mineral properties | 12 Months Ended |
Dec. 31, 2021 | |
Mineral Properties | |
Mineral properties | 7. Mineral properties Schedule of mining properties Mining assets Surface rights acquired Total $’000 $’000 $’000 Cost Balance – January 1, 2020 $ 23,181 $ 6,459 $ 29,640 Additions 942 - 942 Balance - December 31, 2020 $ 24,123 $ 6,459 $ 30,582 Mineral properties, cost, beginning $ 24,123 $ 6,459 $ 30,582 Additions 2,951 - 2,951 Balance – December 31, 2021 $ 27,074 $ 6,459 $ 33,533 Mineral properties, cost, ending $ 27,074 $ 6,459 $ 33,533 Depletion Balance - January 1, 2020 $ 13,275 $ 908 $ 14,183 Change for the period 477 - 477 Balance - December 31, 2020 $ 13,752 $ 908 $ 14,660 Mineral properties, accumulated depletion, beginning $ 13,752 $ 908 $ 14,660 Charge for the period 1,272 - 1,272 Depletion charge for the year for mineral properties 1,272 - 1,272 Impairment 1,489 - 1,489 Balance – December 31, 2021 $ 16,513 $ 908 $ 17,421 Mineral properties, accumulated depletion, ending $ 16,513 $ 908 $ 17,421 Net book value December 31, 2020 $ 10,371 $ 5,551 $ 15,922 December 31, 2021 $ 10,561 $ 5,551 $ 16,112 Net book value $ 10,561 $ 5,551 $ 16,112 Trilogy Mining Corporation In January 2016, Patagonia Gold Limited (“PGL”) entered into an earn–in agreement with Trilogy Mining Corporation (“Trilogy”) in relation to the San José Project in Uruguay. This was recognized within mining assets at a cost of $ 1,996 42.5% 1,996 Lomada project All development costs incurred with respect to the Lomada project, from September 1, 2010 and onwards, have been capitalized as mineral properties and included under mining assets. The project completed the trial heap leach phase and entered full commercial production in the third quarter of 2013. Amortization is charged based on the unit-of-production method. Patagonia Gold Corp. Notes to the Consolidated Financial Statements For the Years Ended December 31, 2021, 2020 and 2019 (In thousands of U.S. dollars unless otherwise stated) In February 2019, the Company reviewed the production profile for Lomada. Given the lower than anticipated recoveries, the Company made the decision to close the Lomada project. Following receipt of a preliminary permit on October 7, 2020, the Company restarted mining operations at Lomada de Leiva in November 2020, which had been previously closed since in February 2019. The expenses related to the development of the new pit were capitalized as Mineral Properties. During the year ended December 31, 2021, the Company recorded an impairment charge of $ 989 Nil Cap-Oeste project The Company completed the development of Cap-Oeste Project in September 2016, entered into production in the last quarter of that year. As a result of the experience gained at Lomada, no trial production period was required at Cap-Oeste. Revenue from commercial production was therefore recognised from the outset. The capitalized development costs are amortized based on the unit of production method. In February 2019, the Company reviewed the production profile for 2019 for Cap-Oeste. Given the expected lower production volumes, the Company made the decision to put Cap-Oeste on care and maintenance until a suitable solution to extract and process the high-grade underground resource from Cap-Oeste has been identified. Residual production continued at Cap-Oeste and the Company continued to capitalize costs under inventories. Mina Angela In September 2020, the Company entered into a definitive option agreement with Latin Metals Inc. which granted the Company an irrevocable option to acquire a 100% 250 250 500 1.25% 1,000 100% 250 On December 15, 2021, the legislature of the Province of Chubut passed a bill to amend the provincial mining law to enable open pit mining within a given area that comprises the Gastre and Telsen Departments. This new law regarding mining zoning was subsequently promulgated on December 16, 2021 by the Chubut Governor. This newly approved law regarding mining zoning would have enabled the Company to advance the development of 101,151 ha of its mining concessions, including Mina Angela. However, on December 20, 2021, the Chubut Governor, sent a bill to the legislature of the Province of Chubut to retract the recent amendments as a result of the violent demonstrations that occurred soon after such law was enacted. During the year ended December 31, 2021, the Company recorded an impairment charge of $ 500 Nil Surface rights The Company owns the surface rights of land encompassing the Estancia La Bajada, Estancia El Tranquilo, Estancia El Rincon, Estancia La Josefina and the Estancia 1° de Abril. There is a back in right granted to the sellers under Estancia El Rincon’s title deed whereby the Company irrevocably committed to resell the estancia to its former owner in the event that two consecutive years elapse without mining activities. Current activity on this property includes the Lomada Project. Patagonia Gold Corp. Notes to the Consolidated Financial Statements For the Years Ended December 31, 2021, 2020 and 2019 (In thousands of U.S. dollars unless otherwise stated) Mina Martha project On May 6, 2016, the Company acquired the assets of the Mina Martha project from Coeur Mining Inc. (“Coeur”). The Mina Martha project consists of land, mineral rights, a mine camp, offices, a warehouse, maintenance shop, mining facilities including a flotation mill and a tailings retention facility. La Josefina project In March 2007, the Company acquired the exploration and development rights to the La Josefina project from Fomento Minero de Santa Cruz Sociedad del Estado (“Fomicruz”) the Santa Cruz provincial mining and petroleum company. In July 2007, the Company entered into an agreement (subsequently amended) with Fomicruz which provides that, in the event that a positive feasibility study is completed on the La Josefina property, a Joint Venture Corporation (“JV Corporation”) would be formed by the Company and Fomicruz. The Company would own 81% 19% 49% 49% The Company has the right to buy back any increase in Fomicruz’s ownership interest in the JV Corporation at a purchase price of $ 0.2 18 20 The Company also entered into a Net Smelter Royalty agreement, pursuant to which Fomicruz is granted a 2% 5% 5 Homenaje and Nico Projects On April 15, 2021, the Company entered into definitive agreements to acquire two projects in Argentina. A definitive option agreement was executed with Mirasol Resources Ltd. (“Mirasol”) and Mirasol’s wholly-owned subsidiary Australis S.A. (“Australis” and together with Mirasol, the “Vendors”), which grants the Company an option to acquire a 75% 100% Homenaje Project Pursuant to the Option Agreement, Patagonia has an option to earn a 75% ● an initial work program over six years of $ 2.55 ● expenditures on exploration activities with respect to the Homenaje Project (the “Exploration Expenditures”) of a minimum of $ 0.4 ● following completion of the initial Exploration Expenditures and drilling obligations due within the first 30 months, Patagonia must complete a minimum of $ 0.4 0.2 ● a pre-feasibility study, prepared in accordance with NI 43-101, for a mineral resource of not less than 300,000 ounces of gold equivalent. Patagonia Gold Corp. Notes to the Consolidated Financial Statements For the Years Ended December 31, 2021, 2020 and 2019 (In thousands of U.S. dollars unless otherwise stated) Upon Patagonia completing the Earn-In Obligations, Patagonia and the Vendors will hold 75% and 25%, respectively, in a joint venture company holding the Homenaje Project. If either party’s equity interest is diluted below 10%, it will convert to a 2% NSR royalty. Nico Project Pursuant to the terms of the Transfer Agreement, Patagonia has acquired the Vendors’ interest in the Nico Project in exchange for a 1.5% |
Reclamation and remediation obl
Reclamation and remediation obligations | 12 Months Ended |
Dec. 31, 2021 | |
Reclamation And Remediation Obligations | |
Reclamation and remediation obligations | 8. Reclamation and remediation obligations The Company is legally required to perform reclamation on sites where environmental disturbance is caused by the development or on-going mining of a property to restore it to its original condition at the end of its useful life. In accordance with IFRS, the Company recognized the estimated fair value of that liability as an asset retirement obligation. The total amount of undiscounted cash flows required to settle the estimated obligation is $ 6,366 5,182 0.8% 0.19% 7.04% 1.36% The following table describes the changes to the Company’s reclamation and remediation obligation liability: Schedule of changes to asset retirement obligation liability December 31, 2021 December 31, 2020 $’000 $’000 Reclamation and remediation obligation - beginning of year $ 5,139 $ 5,803 Change in estimate 983 (677 ) Accretion expense 66 13 Reclamation and remediation obligation - end of year $ 6,188 $ 5,139 The Company reassesses the cost of reclamation and remediation obligations periodically given new information regarding changes to the risk-free rate, inflation rate and undiscounted cash flow. During the year ended December 31, 2021 and 2020, the change in estimate relates to revisions to the estimated undiscounted cashflow obligations. |
Mining rights
Mining rights | 12 Months Ended |
Dec. 31, 2021 | |
Mining Rights | |
Mining rights | 9. Mining rights Schedule of mining rights Fomicruz Agreement Minera Aquiline Argentina Total $’000 $’000 $’000 Balance – January 1, 2020 $ 3,188 $ 13,809 $ 16,997 Amortization (100 ) - (100 ) Exchange differences - 298 298 Balance - December 31, 2020 $ 3,088 $ 14,107 $ 17,195 Mining rights, beginning balance $ 3,088 $ 14,107 $ 17,195 Amortization (100 ) - (100 ) Exchange differences - 50 50 Balance –December 31, 2021 $ 2,988 $ 14,157 $ 17,145 Mining rights, ending balance $ 2,988 $ 14,157 $ 17,145 Fomicruz Agreement On October 14, 2011, Patagonia Gold, PGSA and Fomicruz entered into a definitive strategic partnership agreement in the form of a shareholders’ agreement (“Fomicruz Agreement”) to govern the affairs of PGSA and the relationship between the Company, PGSA and Fomicruz. Pursuant to the Fomicruz Agreement, Fomicruz contributed to PGSA the rights to explore and mine Fomicruz’s mining properties in Santa Cruz Province in exchange for a 10% 100% After feasibility stage is reached, Fomicruz is obliged to pay its 10% share of the funding incurred thereafter on the PGSA properties, plus annual interest at LIBOR +1% to the Company. Such debt and interest payments will be guaranteed by an assignment by Fomicruz of 50% of the future dividends otherwise payable to Fomicruz on its shares. The Company will manage the exploration and potential future development of the PGSA properties. Patagonia Gold Corp. Notes to the Consolidated Financial Statements For the Years Ended December 31, 2021, 2020 and 2019 (In thousands of U.S. dollars unless otherwise stated) The mining rights acquired have been measured by reference to the estimated fair value of the equity interest given to Fomicruz. Management has estimated the fair value of the 10% 4 4 Effective January 1, 2020, the Company’s former subsidiary Cerro Cazador S.A merged with PGSA and as a result, Formicruz has a 4.7% Minera Aquiline Argentina Agreement On January 31, 2018, Patagonia, through a wholly owned subsidiary (Patagonia Gold Canada Inc. “PGCAD”), acquired the Calcatreu gold asset in Rio Negro, Argentina, by way of acquiring 100% 15 5 10 This transaction was accounted for as an asset acquisition and the purchase consideration was allocated to Mining Rights at $ 14.6 0.4 |
Other financial assets
Other financial assets | 12 Months Ended |
Dec. 31, 2021 | |
Other Financial Assets | |
Other financial assets | 10. Other financial assets The Company has short-term investments in equity securities which are recorded at fair value through other comprehensive income (loss). As at December 31, 2021, the fair value of the short-term investments is $ 15 16 The Company had a performance bond that was originally required to secure the Company’s rights to explore the La Josefina property. It was a step-up US dollar denominated 2.5% 600 247 During the year ended December 31, 2020, the Company sold the performance bond for $ 400 Changes in the fair value of these financial assets are recorded as other comprehensive income (loss). Patagonia Gold Corp. Notes to the Consolidated Financial Statements For the Years Ended December 31, 2021, 2020 and 2019 (In thousands of U.S. dollars unless otherwise stated) |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property, plant and equipment | 11. Property, plant and equipment Schedule of property plant and equipment Plant Buildings Vehicles and equipment Improvements and advances Total $’000 $’000 $’000 $’000 $’000 Cost Balance – January 1, 2020 $ 15,326 $ 1,979 $ 23,024 $ 852 $ 41,181 Additions 114 - 260 602 976 Disposals - - (14 ) (415 ) (429 ) Balance – December 31, 2020 $ 15,440 $ 1,979 $ 23,270 $ 1,039 $ 41,728 Property, plant and equipment, cost, beginning $ 15,440 $ 1,979 $ 23,270 $ 1,039 $ 41,728 Additions 1 - 585 1,253 1,839 Disposals - - (84 ) - (84 ) Transfers 36 - 20 (56 ) - Balance – December 31, 2021 $ 15,477 $ 1,979 $ 23,791 $ 2,236 $ 43,483 Property, plant and equipment, cost, ending $ 15,477 $ 1,979 $ 23,791 $ 2,236 $ 43,483 Accumulated depreciation Balance – January 1, 2020 $ 13,130 $ 201 $ 12,215 $ - $ 25,546 Disposals - - (12 ) - (12 ) Depreciation for the year 272 161 2,528 - 2,961 Balance – December 31, 2020 $ 13,402 $ 362 $ 14,731 $ - $ 28,495 Property, plant and equipment, accumulated depreciation, beginning $ 13,402 $ 362 $ 14,731 $ - $ 28,495 Disposals - - (83 ) - (83 ) Depreciation for the year 281 161 2,154 - 2,596 Balance – December 31, 2021 $ 13,683 $ 523 $ 16,802 $ - $ 31,008 Property, plant and equipment, accumulated depreciation, ending $ 13,683 $ 523 $ 16,802 $ - $ 31,008 Net book value December 31, 2020 $ 2,038 $ 1,617 $ 8,539 $ 1,039 $ 13,233 December 31, 2021 $ 1,794 $ 1,456 $ 6,989 $ 2,236 $ 12,475 Property, plant and equipment, net book value $ 1,794 $ 1,456 $ 6,989 $ 2,236 $ 12,475 |
Receivables
Receivables | 12 Months Ended |
Dec. 31, 2021 | |
Receivables | 12. Receivables Schedule of receivables December 31, December 31, 2021 2020 $’000 $’000 Receivable from sales $ 112 $ 156 Recoverable value added tax (“VAT”) 1,849 1,217 Other receivables 551 668 Total $ 2,512 $ 2,041 |
Other receivables
Other receivables | 12 Months Ended |
Dec. 31, 2021 | |
Other Receivables | |
Other receivables | 13. Other receivables Schedule of other receivables December 31 December 31, 2021 2020 $’000 $’000 Recoverable value added tax (“VAT”) $ 1,019 $ 722 Other receivables 402 2,822 Total $ 1,421 $ 3,544 Patagonia Gold Corp. Notes to the Consolidated Financial Statements For the Years Ended December 31, 2021, 2020 and 2019 (In thousands of U.S. dollars unless otherwise stated) On October 14, 2011, the Company, its subsidiary PGSA and Fomento Minero de Santa Cruz Sociedad del Estado (“Fomicruz”), the Santa Cruz provincial mining and petroleum company, entered into an agreement in the form of a shareholders’ agreement (“Fomicruz Agreement”) to govern the affairs of PGSA and the relationship between the Company, PGSA and Fomicruz. Pursuant to the Fomicruz Agreement, Fomicruz contributed to PGSA the rights to explore and mine Fomicruz’s mining properties in Santa Cruz Province in exchange for a 10% 4.7% 100% After feasibility stage is reached, Fomicruz is obliged to pay its 10% share of the funding incurred thereafter on the PGSA properties, plus annual interest at LIBOR +1% to the Company. Such debt and interest payments will be guaranteed by an assignment by Fomicruz of 50% of the future dividends otherwise payable to Fomicruz on its shares. Effective June 2020, Fomicruz and the Company agreed to terminate the Fomicruz Agreement, expressly stating that they have no mutual claims under it. PGSA, Minamalú and Fomicruz have assumed the commitment to enter into a new shareholders agreement within thirty days following the Shareholder’s meeting of PGSA (the “Meeting”) by virtue of which Minamalú becomes a shareholder of PGSA. As of the date of approval of these consolidated financial statements, the Meeting has not been held. During the year ended December 31, 2021, the Company recorded a write-down of $ 2,323 Nil Nil As at December 31, 2021, other receivables include $ Nil 2,185 The remaining other receivables balance consists of tax receivables. |
Bank indebtedness
Bank indebtedness | 12 Months Ended |
Dec. 31, 2021 | |
Bank Indebtedness | |
Bank indebtedness | 14. Bank indebtedness Schedule of credit facility December 31, December 31, 2021 2020 $’000 $’000 A credit facility with a limit of $ 6,600 December 31, 2022 1.5% 1 1 $ 3,915 $ 9,636 A credit facility with an Argentinian bank with a limit of $ 1,947 200,000 April 30, 2022 42% 1,941 - A credit facility with an Argentinian bank with a limit of $ 1,460 150,000 June 30, 2022 35% 850 - Bank indebtedness $ 6,706 $ 9,636 1 - As at December 31, 2021, the interest rate was 1.65% 2.75% The lines of credit have no specific terms of repayment and the Company renews them every year. |
Accounts payable and accrued li
Accounts payable and accrued liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Accounts payable and accrued liabilities | 15. Accounts payable and accrued liabilities Schedule of accounts payable and accrued liabilities December 31, December 31, 2021 2020 $’000 $’000 Trade accounts payable and accrued liabilities $ 4,207 $ 2,510 Income tax 50 - Other accruals 1 1 2,602 1,874 Accounts payable to related parties (note 20) 208 144 Total $ 7,067 $ 4,528 1 – As at December 31, 2021, other accruals consists of taxes payable of $ 1,993 1,449 609 425 Patagonia Gold Corp. Notes to the Consolidated Financial Statements For the Years Ended December 31, 2021, 2020 and 2019 (In thousands of U.S. dollars unless otherwise stated) |
Loan payable, lease payable and
Loan payable, lease payable and current portion of long-term debt | 12 Months Ended |
Dec. 31, 2021 | |
Loan Payable Lease Payable And Current Portion Of Long-term Debt | |
Loan payable, lease payable and current portion of long-term debt | 16. Loan payable, lease payable and current portion of long-term debt Schedule of loan payable, lease payable and current portion of long-term debt December 31, December 31, 2021 2020 $’000 $’000 Current portion of long-term debt (note 20) $ 508 $ 340 Leases payable 9 23 Total $ 517 $ 363 |
Long-term debt
Long-term debt | 12 Months Ended |
Dec. 31, 2021 | |
Long-term Debt | |
Long-term debt | 17. Long-term debt Schedule of long-term debt December 31, December 31, 2021 2020 $’000 $’000 Loan to related party secured by a letter of guarantee from the Company, at 5% December 31, 2023 $ 13,961 $ 13,961 Loan secured by assets of the Company, at 5.75% 2022 207 448 Loan secured by assets of the Company payable 9% 2023 556 - Debt 556 - Accrued interest on debt 1,546 848 Subtotal $ 16,270 $ 15,257 Less current portion (508 ) (340 ) Long-term debt $ 15,762 $ 14,917 Principal payments on long-term debts are due as followed: Schedule of principal payments on long-term debt Year ending December 31, 2022 508 2023 15,762 |
Net loss per share
Net loss per share | 12 Months Ended |
Dec. 31, 2021 | |
Profit or loss [abstract] | |
Net loss per share | 18. Net loss per share Basic and diluted net loss per share is computed by dividing net loss available to common shareholders by the weighted average number of common shares outstanding during the period. There were no dilutive items outstanding for the period as the Company had a net loss and the effect of any stock options or warrants would be anti-dilutive. The net loss per share is as follows: Schedule of net loss per share December 31, December 31, December 31, 2021 2020 2019 Net loss ($’000) $ (11,266 ) $ (4,381 ) $ (12,354 ) Weighted average number of common shares outstanding – basic and diluted 446,366,938 325,483,780 282,306,312 Net loss per share – basic and diluted $ (0.025 ) $ (0.013 ) $ (0.044 ) Patagonia Gold Corp. Notes to the Consolidated Financial Statements For the Years Ended December 31, 2021, 2020 and 2019 (In thousands of U.S. dollars unless otherwise stated) |
Capital stock
Capital stock | 12 Months Ended |
Dec. 31, 2021 | |
Capital stock | 19. Capital stock Authorized: Unlimited number of common shares without par value Unlimited number of preferred shares without par value Issued: Summary of common outstanding Number of common Amount shares outstanding $’000 Balance at January 1, 2020 317,943,990 $ 2,588 Shares issued to settle debts 45,241,388 4,749 Share repurchased (155,000 ) (17 ) Balance at December 31, 2020 363,030,378 $ 7,320 Shares issued in private placement 104,086,063 4,270 Share issuance costs - (326 ) Share repurchased (550,000 ) (20 ) Balance at December 31, 2021 466,566,441 $ 11,244 Preferred shares are non-redeemable and non-transferrable with discretionary dividends and hence are classified as equity. Preferred shares shall be issued at a price of $ 0.30 Private placement On March 10, 2021, the Company completed a private placement offering and raised gross proceeds of $ 7,408 9,368 104,086,063 0.09 0.13 7,408 4,270 3,138 In connection with the private placement, the Company incurred cash commissions and expenses of $ 326 188 138 2,509,586 0.09 0.13 138 A director of the Company participated in the private placement and subscribed for a total of 57,777,777 4,112 Normal Course Issuer Bid On February 19, 2020, the Company announced that it has received approval from the TSX Venture Exchange (“TSXV”) of its Notice of Intention to Make a Normal Course Issuer Bid (the “NCIB”). Under the NCIB, the Company may purchase for cancellation up to 15,897,199 5% 317,943,990 During the year ended December 31, 2020, the Company repurchased 155,000 17 On October 26, 2021, the Company announced that it has received approval from the TSXV of its Notice of Intention to Make a NCIB. Under the NCIB, the Company may purchase for cancellation up to 10,000,000 2% 467,116,441 During the year ended December 31, 2021, the Company repurchased 550,000 20 Patagonia Gold Corp. Notes to the Consolidated Financial Statements For the Years Ended December 31, 2021, 2020 and 2019 (In thousands of U.S. dollars unless otherwise stated) Shares issued to settle debts On October 30, 2020, the Company issued 44,040,277 0.227 0.30 10,000 4,822 5,178 1,458 720 Prior to the debt settlement, the fair value of the outstanding debts in the Company’s consolidated financial statements was $ 10,147 4,233 5,914 The value of the common shares issued was determined to be $ 4,630 0.105 0.14 5,517 On November 24, 2020, the Company issued 1,201,111 128 119 0.10 0.14 9 Stock options Under the Company’s share option plan, and in accordance with TSX Venture Exchange requirements, the number of common shares reserved for issuance under the option plan shall not exceed 10% of the issued and outstanding common shares of the Company, have a maximum term of 5 years All equity-settled share-based payments are ultimately recognized as an expense in the consolidated statements of loss and comprehensive income (loss) with a corresponding credit to “Contributed Surplus”. If vesting periods or other non-market vesting conditions apply, the expense is allocated over the vesting period, based on the best available estimate of the number of share options expected to vest. Estimates are subsequently revised if there is any indication that the number of share options expected to vest differs from previous estimates. Any cumulative adjustment prior to vesting is recognized in the current period. No adjustment is made to any expense recognized in prior periods if share options ultimately exercised are different to that estimated on vesting. Summary of stock option activity Year ended December 31, 2021 Year ended December 31, 2020 Number of options Weighted Average Price (CAD) Number of options Weighted Average Price (CAD) Balance, beginning of year 17,250,000 $ 0.118 7,650,000 $ 0.065 Granted - - 9,600,000 0.160 Balance, end of year 17,250,000 $ 0.118 17,250,000 $ 0.118 Patagonia Gold Corp. Notes to the Consolidated Financial Statements For the Years Ended December 31, 2021, 2020 and 2019 (In thousands of U.S. dollars unless otherwise stated) As at December 31, 2021, the following stock options were outstanding: Summary of stock options outstanding Exercise price (CAD) Options vested Options unvested Total outstanding Remaining contractual life (years) Expiry date $ 0.065 7,650,000 - 7,650,000 2.74 September 25, 2024 $ 0.160 3,200,000 6,400,000 9,600,000 3.62 August 13, 2025 10,850,000 6,400,000 17,250,000 3.23 On August 14, 2020, the Company granted 9,600,000 0.16 August 14, 2025 1,440 Summary of stock option measurement assumptions Discount rate 0.35 % Expected volatility 172.95 % Expected life (years) 5 Expected dividend yield 0 % Forfeiture rate 0 % Stock price CAD $ 0.15 During the year ended December 31, 2021, the Company recognized share-based payments expense of $ 362 382 127 Agent compensation options Summary of agent compensation options Year ended December 31, 2021 Number of Agent compensation options Weighted average price (CAD) Balance, beginning of year - $ - Issued 2,509,586 0.09 Balance, end of year 2,509,586 $ 0.09 In connection with the private placement on March 10, 2021, the Company issued 2,509,586 0.09 0.13 March 10, 2024 138 Summary of agent compensation options measurement assumptions Discount rate 0.25 % Expected volatility 140.69 % Expected life (years) 3 Expected dividend yield 0 % Unit price CAD $ 0.09 As at December 31, 2021 the following Agent compensation options were outstanding: Summary of agent compensation outstanding options Exercise price (CAD) Number outstanding Remaining Contractual Life (Years) Expiry date $ 0.09 2,509,586 2.19 March 10, 2024 Patagonia Gold Corp. Notes to the Consolidated Financial Statements For the Years Ended December 31, 2021, 2020 and 2019 (In thousands of U.S. dollars unless otherwise stated) Warrants Summary of stock warrants activity Year ended December 31, 2021 Number of warrants Weighted average price (CAD) Balance, beginning of year - $ - Issued 104,086,063 0.13 Balance, end of year 104,086,063 $ 0.13 In connection with the March 10, 2021 private placement, the Company issued 104,086,063 0.13 March 10, 2024 5,441 Summary of warrants fair value measurements Discount rate 0.25 % Expected volatility 140.69 % Expected life (years) 3 Expected dividend yield 0 % Stock price CAD $ 0.09 As at December 31, 2021 the following warrants were outstanding: Summary of warrants outstanding Exercise price Number outstanding Remaining Contractual Life (Years) Expiry date $ 0.13 104,086,063 2.19 March 10, 2024 |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions | |
Related party transactions | 20. Related party transactions Key management personnel include the members of the Board of Directors and executive officers of the Company. Related party transactions and balances not disclosed elsewhere in the consolidated financial statements are as follows: Summary of related party transactions and balances Name and Principal Position Remuneration, fees or interest expense Loans or Advances Remuneration, fees, or interest payments Loan payments Included in Accounts Payable Included in Loan Payable and Long-term debt (note 17) Year ended December 31, As at December 31, 2021 and 2020 $’000 $’000 $’000 $’000 $’000 $’000 A company controlled by a 2021 - - - - - - director 2020 262 - - 6,636 - - expenses 2019 - - - - A company controlled by a 2021 762 - 23 - 166 15,507 director 2020 703 6,053 212 - 126 14,808 expenses 2019 346 7,908 33 - 2021 447 - 423 - 42 - Directors 2020 446 - 544 - 18 - - salaries and wages 2019 337 - 317 - 2021 - - - - - - Director 2020 - 532 962 3,270 - - -loans 2019 - 347 - - As at December 31, 2021, the Company has $ 208 144 Patagonia Gold Corp. Notes to the Consolidated Financial Statements For the Years Ended December 31, 2021, 2020 and 2019 (In thousands of U.S. dollars unless otherwise stated) Management Compensation The remuneration of Directors and Officers of the Company was as follows: Summary of remuneration of directors and officers 2021 2020 2019 Year ended December 31, 2021 2020 2019 Salaries and benefits $ 635 $ 820 $ 375 Director’s fees 72 71 30 Share-based compensation 228 230 51 Remuneration management compensation $ 935 $ 1,121 $ 456 |
Administrative expenses
Administrative expenses | 12 Months Ended |
Dec. 31, 2021 | |
Administrative expenses | 21. Administrative expenses Summary of administrative expenses 2021 2020 2019 Year ended December 31, 2021 2020 2019 $’000 $’000 $’000 General and administrative $ 2,677 $ 2,353 $ 4,175 Argentina statutory taxes 996 654 641 Professional fees 746 986 1,566 Operating leases 59 132 130 Directors’ remuneration 221 244 259 Loss (gain) on sale of property, plant and equipment (336 ) 194 (76 ) Depreciation of property, plant and equipment 2,596 2,961 3,028 Depreciation allocated to inventory (2,158 ) (2,605 ) (2,501 ) Depletion of mineral properties 1,272 477 3,456 Amortization of mining rights 100 100 100 Consulting fees 51 115 18 Transaction taxes expense 203 - 248 Total $ 6,427 $ 5,611 $ 11,044 |
Financial instruments
Financial instruments | 12 Months Ended |
Dec. 31, 2021 | |
Financial instruments | 22. Financial instruments The Company’s financial instruments consist of cash, receivables, other financial assets, bank indebtedness, accounts payable and accrued liabilities, loan payable, interest payable, and long-term debt. The Company characterizes inputs used in determining fair value using a hierarchy that prioritizes inputs depending on the degree to which they are observable. The fair value hierarchy establishes three levels to classify the inputs to valuation techniques used to measure fair value. The three levels of the fair value hierarchy are as follows: ● Level 1: inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Active markets are those in which transactions occur in sufficient frequency and volume to provide pricing information on an ongoing basis. ● Level 2: inputs, other than quoted prices, that are observable, either directly or indirectly. Level 2 valuations are based on inputs, including quoted forward prices for commodities, market interest rates, and volatility factors, which can be observed or corroborated in the marketplace. ● Level 3: inputs are less observable, unavoidable or where the observable data does not support the majority of the instruments’ fair value. Patagonia Gold Corp. Notes to the Consolidated Financial Statements For the Years Ended December 31, 2021, 2020 and 2019 (In thousands of U.S. dollars unless otherwise stated) Fair value As at December 31, 2021, there were no changes in the levels in comparison to December 31, 2020. The fair values of financial instruments are summarized as follows: Summary of fair values of financial instruments in levels of assets and liabilities December 31, 2021 December 31, 2020 Carrying amount Fair value Carrying amount Fair value $’000 $’000 $’000 $’000 Financial assets Amortized cost Cash 291 291 819 819 Receivables and other receivable ¹ 1,065 1,065 3,646 3,646 Fair value through other comprehensive income Other financial assets (Level 1) 15 15 16 16 Financial liabilities Amortized cost Bank indebtedness 6,706 6,706 9,636 9,636 Accounts payable and accrued liabilities 7,067 7,067 4,528 4,528 Loan payable and current portion of long-term debt 517 517 363 363 Long-term debt 15,762 15,762 14,917 14,917 1 Amounts exclude value added tax (“VAT”) recoverable of $2,868 and $1,939 as December 31, 2021 and 2020. ¹ Amounts exclude value added tax (“VAT”) recoverable of $ 2,868 1,939 Other financial assets are measured based on Level 1 inputs of the fair value hierarchy on a recurring basis. The carrying value of receivables, other receivable, accounts payable and accrued liabilities and bank indebtedness approximate their fair value because of the short-term nature of these instruments. The Company assessed that there were no indicators of impairment for the financial assets. Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and accounts receivable. The Company places its cash with high quality financial institutions and limits the amount of credit exposure with any one institution. Receivables consist of trade receivables and VAT recoverable and are not considered subject to significant risk, because the amounts are due from a government and a customer who is considered credit worthy. Market Risk Market risk is the risk that the fair value or cash flows of a financial instrument will fluctuate due to changes in market prices. Market risk reflects interest rate risk and currency risk. Interest Rate Risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is exposed to interest rate risk with regards to its bank indebtedness which is comprised of lines of credits at variable interest rates. To the extent that changes in the prevailing market interest rates differ from the interest rates on the Company’s monetary liabilities, the Company is exposed to interest rate price risk. Patagonia Gold Corp. Notes to the Consolidated Financial Statements For the Years Ended December 31, 2021, 2020 and 2019 (In thousands of U.S. dollars unless otherwise stated) Currency Risk Currency risk is the risk to the Company’s earnings that arises from fluctuations of foreign exchange rates and the degree of volatility of these rates. The Company does not use derivative instruments to reduce its exposure to foreign currency risk. As at December 31, 2021, the Company had financial assets and liabilities denominated in the following foreign currencies: Summary of financial assets and liabilities denominated for foreign currencies CAD AR$ USD Euro GBP Cash $ 107 $ 130 54 $ - $ - Other working capital (deficit) items - net (140 ) (5,218 ) (8,080 ) (207 ) 19 Non-current financial assets - 401 - - 15 Non-current financial liabilities - - (15,762 ) - - Credit Risk Credit risk arises from the potential that counterparties will fail to satisfy their obligations as they come due. Credit risk is managed by dealing with parties that the Company believes to be creditworthy and by actively monitoring credit exposure and the financial health of the parties. The Company currently maintains a substantial portion of its day-to-day operating cash balances at financial institutions. As at December 31, 2021, the Company had total cash balances of $ 291 819 Nil Nil Liquidity Risk Liquidity risk refers to the risk that the Company will not be able to meet its financial obligations when they become due. The Company’s management is responsible for reviewing liquidity resources to ensure funds are readily available to meet its financial obligations as they come due, as well as ensuring adequate funds exist to support business strategies and operations growth. As at December 31, 2021, the Company had current assets of $ 6,562 6,149 14,290 14,527 The contractual obligations of the Company’s liabilities are as follows: Schedule of company obligations by contractual maturity Total Less than 1 year 1-3 3-5 More than 5 years As of December 31, 2021 Payments Due by Period Total Less than 1 year 1-3 3-5 More than 5 years Bank indebtedness $ 6,706 $ 6,706 - - - Accounts payable and accrued liabilities 6,859 6,859 - - - Accounts payable with related parties 208 208 - - - Loan payable and current portion of long-term debt 517 517 - - - Long-term debt 255 - 255 - - Long-term debt with related parties 15,507 - 15,507 - - Reclamation and remediation obligations 6,188 - 5,142 - 1,046 Other long-term payables 8 - 8 - - Total $ 36,248 $ 14,290 $ 20,912 - $ 1,046 Concentration risk The Company has concentrations of credit risk with respect to its trade receivables, the majority of which are concentrated internationally amongst a small number of customers. As at December 31, 2021 and 2020, the Company had two (2) customers that make up the entire balance of the trade receivables. The Company controls credit risk through monitoring procedures, and by performing credit evaluations of its customers, but generally does not require collateral to secure accounts receivable. |
Other income
Other income | 12 Months Ended |
Dec. 31, 2021 | |
Other income | 23. Other income As part of the Company´s treasury management, the Company trades certain securities denominated in US dollar and Argentine Peso. The gain on disposition of these securities is recorded as other income on the consolidated statements of loss and comprehensive income (loss). During the year ended December 31, 2021, the Company recognized a gain of $ 1,380 2,155 |
Segment reporting
Segment reporting | 12 Months Ended |
Dec. 31, 2021 | |
Segment reporting | 24. Segment reporting All of the Company’s operations are in the mineral properties exploration industry with its principal business activity in mineral exploration. The Company conducts its activities primarily in Argentina. All of the Company’s long-lived assets are located in Argentina. Patagonia Gold Corp. Notes to the Consolidated Financial Statements For the Years Ended December 31, 2021, 2020 and 2019 (In thousands of U.S. dollars unless otherwise stated) The Company’s net income/(loss) and its geographic allocation of total assets and total liabilities is summarized as follows: Schedule of segment reporting information For the year ended December 31, 2021 Argentina Lomada Project Cap- Oeste Project Calcatreu Project Martha and La Josefina Projects Argentina Uruguay and Chile UK North America Total Revenue $ 4,177 $ 13,927 $ - $ - $ - $ - $ - $ 18,104 Cost of sales (6,422 ) (7,137 ) - - - - - (13,559 ) Gross profit (loss) $ (2,245 ) $ 6,790 $ - $ - $ - $ - $ - $ 4,545 Operating expense Exploration expense $ - $ - $ (1,576 ) $ (91 ) $ (2,937 ) $ - $ - $ (4,604 ) Repair and maintenance - - - (658 ) - - - (658 ) Administrative expenses (808 ) (464 ) (359 ) - (3,143 ) (185 ) (930 ) (5,889 ) Depreciation expense - - (22 ) - (416 ) (100 ) - (538 ) Impairment of mineral properties (989 ) - - - (500 ) - - (1,489 ) Share-based payments - - - - - - (362 ) (362 ) Interest expense - - (12 ) - (652 ) (461 ) (311 ) (1,436 ) Total operating expense $ (1,797 ) $ (464 ) $ (1,969 ) $ (749 ) $ (7,648 ) $ (746 ) $ (1,603 ) $ (14,976 ) Other income/(expense) Interest income $ - $ - $ 1 $ - $ 220 $ - $ - $ 221 Gain/(loss) on foreign exchange - - (106 ) - (255 ) 114 23 (224 ) Accretion expense (32 ) (11 ) - (23 ) - - - (66 ) Write-down of other receivables - - - - (2,323 ) - - (2,323 ) Other expenses - - 1,380 - - - - 1,380 Total other income/(expense) $ (32 ) $ (11 ) $ 1,275 $ (23 ) $ (2,358 ) $ 114 $ 23 $ (1,012 ) Income/(loss) – before income tax $ (4,074 ) $ 6,315 $ (694 ) $ (772 ) $ (10,006 ) $ (632 ) $ (1,580 ) $ (11,443 ) Income tax/(benefit) - - (172 ) (387 ) 736 - - 177 Net income/(loss) $ (4,074 ) $ 6,315 $ (866 ) $ (1,159 ) $ (9,270 ) $ (632 ) $ (1,580 ) $ (11,266 ) Patagonia Gold Corp. Notes to the Consolidated Financial Statements For the Years Ended December 31, 2021, 2020 and 2019 (In thousands of U.S. dollars unless otherwise stated) For the year ended December 31, 2020 Argentina Lomada Project Cap- Oeste Project Calcatreu Project Martha and La Josefina Projects Argentina Uruguay and Chile UK North America Total Revenue $ 6,482 $ 12,417 $ - $ 950 $ - $ - $ - $ 19,849 Cost of sales (4,391 ) (6,589 ) - (2,267 ) - - - (13,247 ) Gross profit (loss) $ 2,091 $ 5,828 $ - $ (1,317 ) $ - $ - $ - $ 6,602 Operating expense Exploration expense $ - $ - $ (884 ) $ (83 ) $ (1,336 ) $ - $ - $ (2,303 ) Administrative expenses - (495 ) (217 ) - (2,946 ) (212 ) (1,285 ) (5,155 ) Depreciation expense - - (18 ) - (338 ) (100 ) - (456 ) Share-based payments - - - - - - (382 ) (382 ) Interest expense - - (1 ) - (318 ) (610 ) (1,171 ) (2,100 ) Total operating expense $ - $ (495 ) $ (1,120 ) $ (83 ) $ (4,938 ) $ (922 ) $ (2,838 ) $ (10,396 ) Other income/(expense) Interest income $ - $ - $ 1 $ - $ 124 $ - $ - $ 125 Gain/(loss) on foreign exchange - - 713 - (1,159 ) (369 ) 30 (785 ) Accretion expense (6 ) (3 ) - (4 ) - - - (13 ) Other expenses - - (297 ) - 2,452 - - 2,155 Total other income/(expense) $ (6 ) $ (3 ) $ 417 $ (4 ) $ 1,417 $ (369 ) $ 30 $ 1,482 Income/(loss) – before income tax $ 2,085 $ 5,330 $ (703 ) $ (1,404 ) $ (3,521 ) $ (1,291 ) $ (2,808 ) $ (2,312 ) Income tax/(benefit) - - 138 - (2,207 ) - - (2,069 ) Net income/(loss) $ 2,085 $ 5,330 $ (565 ) $ (1,404 ) $ (5,728 ) $ (1,291 ) $ (2,808 ) $ (4,381 ) Patagonia Gold Corp. Notes to the Consolidated Financial Statements For the Years Ended December 31, 2021, 2020 and 2019 (In thousands of U.S. dollars unless otherwise stated) For the year ended December 31, 2019 Argentina Lomada Project Cap- Oeste Project Calcatreu Project Martha and La Josefina Projects Argentina Uruguay and Chile UK North America Total Revenue $ 4,750 $ 14,903 $ - $ 2,285 $ - $ - $ - $ 21,938 Cost of sales (3,765 ) (11,828 ) - (1,545 ) - - - (17,138 ) Gross profit (loss) $ 985 $ 3,075 $ - $ 740 $ - $ - $ - $ 4,800 Operating expense Exploration expense $ - $ - $ (1,300 ) $ (321 ) $ (987 ) $ - $ - $ (2,608 ) Administrative expenses (2,860 ) (596 ) (279 ) (871 ) (4,232 ) (1,433 ) (307 ) (10,578 ) Depreciation expense - - (17 ) (115 ) (234 ) (100 ) - (466 ) Impairment of mineral properties - - - - - (1,996 ) - (1,996 ) Share-based payments - - - - - (40 ) (87 ) (127 ) Interest expense - - - - (765 ) (782 ) (584 ) (2,131 ) Total operating expense $ (2,860 ) $ (596 ) $ (1,596 ) $ (1,307 ) $ (6,218 ) $ (4,351 ) $ (978 ) $ (17,906 ) Other income/(expense) Interest income $ - $ - $ 34 $ - $ 157 $ - $ - $ 191 Gain/(loss) on foreign exchange - - (10 ) 1,714 (1,082 ) (467 ) 326 481 Accretion expense (7 ) (12 ) - (16 ) - - - (35 ) Total other income/(expense) $ (7 ) $ (12 ) $ 24 $ 1,698 $ (925 ) $ (467 ) $ 326 $ 637 Income/(loss) – before income tax $ (1,882 ) $ 2,467 $ (1,572 ) $ 1,131 $ (7,143 ) $ (4,818 ) $ (652 ) $ (12,469 ) Income tax/(benefit) - - (869 ) (2,030 ) 3,014 - - 115 Net income/(loss) $ (1,882 ) $ 2,467 $ (2,441 ) $ (899 ) $ (4,129 ) $ (4,818 ) $ (652 ) $ (12,354 ) Patagonia Gold Corp. Notes to the Consolidated Financial Statements For the Years Ended December 31, 2021, 2020 and 2019 (In thousands of U.S. dollars unless otherwise stated) Total Assets Total liabilities December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 $’000 $’000 $’000 $’000 Argentina – Cap-Oeste $ 12,263 $ 14,585 $ 2,080 $ 1,880 Argentina – Lomada 7,038 4,616 4,899 3,808 Argentina – Calcatreu 15,977 15,343 1,019 490 Argentina – Martha & La Josefina 12,086 12,704 4,994 2,298 Argentina and Chile 6,139 8,553 7,439 5,355 United Kingdom 138 122 11,869 15,678 North America 4,098 4,145 7,743 9,154 Total $ 57,739 $ 60,068 $ 40,043 $ 38,663 |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and contingencies | 25. Commitments and contingencies Republic Metals Corporation (“Republic”) filed for protection under Chapter 11 of the United States Bankruptcy Code on November 2, 2018 (the “Petition Date”) in the United States Bankruptcy Court for the Southern District of New York. Republic processed material from the Company’s Lomada and Cap-Oeste projects in the Santa Cruz province of Argentina prior to the Petition Date. The Chapter 11 plan of liquidation in the bankruptcy proceedings appointed a Litigation Trustee (the “Trustee”) to handle the Bankruptcy Estate of Republic. The Company received a demand letter (the “Demand Letter”) from the Trustee dated March 17, 2020, demanding repayment of amounts previously paid by Republic to the Company within 90 days before the Petition Date. The Company reviewed the Demand Letter with its independent US counsel and counsel has responded to the Demand Letter. Republic was required to have commenced an action to recover the Preference Amount by November 2, 2020. As of the date of approval of these consolidated financial statements, no litigation has been brought by Republic against the Company. No provision has been accrued in these consolidated financial statements related to the Demand Letter as Management does not anticipate that the Company will have to repay any of the amounts previously received from Republic. |
Capital Management
Capital Management | 12 Months Ended |
Dec. 31, 2021 | |
Capital Management | 26. Capital Management The Company’s capital management objectives are: ● to ensure the Company’s ability to continue as a going concern; ● to fund projects from raising capital from equity placements rather than long-term borrowings; ● to increase the value of the assets of the business; and ● to provide an adequate return to shareholders in the future when new or existing exploration assets are taken into production. These objectives will be achieved by maintaining and adding value to existing extraction projects and identifying new exploration projects, adding value to these projects and ultimately taking them through to production and cash flow, either with partners or by the Company’s means. The Company sets the amount of capital in proportion to its overall financing structure (i.e. equity and financial liabilities). The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. The Company is not subject to any externally imposed capital requirements. Patagonia Gold Corp. Notes to the Consolidated Financial Statements For the Years Ended December 31, 2021, 2020 and 2019 (In thousands of U.S. dollars unless otherwise stated) The Company’s capital as at December 31, 2021 and 2020 is as follows: Schedule of activities of company’s capital December 31, December 31, 2021 2020 $’000 $’000 Bank indebtedness $ 6,706 $ 9,636 Loan payable and current portion of long-term debt 517 363 Long-term debt 255 109 Long-term debt with related parties 15,507 14,808 Shareholders’ equity attributable to the parent 19,088 22,700 Total $ 42,073 $ 47,616 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Taxes | 27. Income Taxes (a) Income tax expense (benefit) Schedule of component of income tax expense (benefit) December 31, 2021 December 31, 2020 December 31, 2019 Current tax expense (benefit) Current period $ 51 $ - $ 47 Deferred tax expense (benefit) Current period 160 2,096 (350 ) Prior period tax adjustments (388 ) (27 ) 188 Total income tax expense (benefit) $ (177 ) $ 2,069 $ (115 ) The actual income tax provision differs from the expected amount calculated by applying the Canadian parent corporate tax rate to income before tax. These differences result from the following: Schedule of reconciliation of income taxes December 31, 2021 December 31, 2020 December 31, 2019 Loss before tax $ (11,443 ) $ (2,312 ) $ (12,469 ) Statutory income tax rate 25 % 25 % 25 % Expected income tax (benefit) $ (2,861 ) $ (578 ) $ (3,117 ) Increase (decrease) resulting from: Non-taxable items 6,415 2,005 118 Change in unrecognized deferred tax assets (1,234 ) 534 1,335 Tax rate changes, tax rate differences (2,109 ) 135 1,361 Prior period tax adjustments (388 ) (27 ) 188 Total income tax expense (benefit) $ (177 ) $ 2,069 $ (115 ) During the year, the Argentinian government enacted legislation to introduce a system of rates by taxable income brackets; the general corporate income tax rates range from 25% 35% 35% 965 Patagonia Gold Corp. Notes to the Consolidated Financial Statements For the Years Ended December 31, 2021, 2020 and 2019 (In thousands of U.S. dollars unless otherwise stated) (b) Components of deferred tax assets and liabilities Schedule of components of deferred tax assets and liabilities Deferred tax assets are attributable to the following: December 31, 2021 December 31, 2020 Property, plant and equipment $ 615 $ 869 Mineral properties 374 - Loss carryforwards 1,000 793 Other 2,489 2,898 Deferred tax assets 4,478 4,560 Deferred tax liabilities are attributable to the following: December 31, 2021 December 31, 2020 Property, plant and equipment $ (5,678 ) $ (5,552 ) Mineral properties (2,374 ) (1,741 ) Long-term debt - (322 ) Other (221 ) (968 ) Deferred tax liabilities (8,273 ) (8,583 ) Set-off of deferred tax assets 4,478 4,560 Net deferred tax liability $ (3,795 ) $ (4,023 ) (c) Movement of deferred tax assets and liabilities Schedule of movement of deferred tax assets and liabilities Balance December 31, 2020 Recognized in net income (loss) Balance December 31, 2021 Property, plant and equipment $ 869 $ (254 ) $ 615 Mineral properties - 374 374 Loss carryforwards 793 207 1,000 Other 2,898 (409 ) 2,489 Property, plant and equipment (5,552 ) (126 ) (5,678 ) Mineral properties (1,741 ) (633 ) (2,374 ) Long-term debt (322 ) 322 - Other (968 ) 747 (221 ) Deferred tax assets and liabilities $ (4,023 ) $ 228 $ (3,795 ) Balance December 31, 2019 Recognized in net income (loss) Balance December 31, 2020 Property, plant and equipment $ 786 $ 83 $ 869 Loss carryforwards 2,385 (1,592 ) 793 Other 1,428 1,470 2,898 Property, plant and equipment (4,263 ) (1,289 ) (5,552 ) Mineral properties (1,741 ) - (1,741 ) Long-term debt (322 ) - (322 ) Other (227 ) (741 ) (968 ) Deferred tax assets and liabilities $ (1,954 ) $ (2,069 ) $ (4,023 ) Patagonia Gold Corp. Notes to the Consolidated Financial Statements For the Years Ended December 31, 2021, 2020 and 2019 (In thousands of U.S. dollars unless otherwise stated) (d) Loss carryforwards The Company and its subsidiaries have tax loss carryforwards within the jurisdictions in which they operate. These loss carryforwards expire between 2024 and 2041. Deferred tax assets have not been recognized in respect of the following items: Schedule of loss carryforwards December 31, 2021 December 31, 2020 Deductible temporary differences 119,456 103,894 Tax losses 27,663 24,204 Loss carryforwards 147,119 128,098 |
COVID-19
COVID-19 | 12 Months Ended |
Dec. 31, 2021 | |
Covid-19 | |
COVID-19 | 28. COVID-19 On March 11 2020, the World Health Organization (WHO) stated the “public health emergency of international concern” and declared the state of pandemic worldwide due to the COVID-19’s outbreak in Wuhan, China and its subsequent global spread. Following this statement, on March 19, 2020, the Argentine Government ordered the “Social, Preventive and Compulsory Isolation” (A.S.P.O. for its acronym in Spanish), by Necessity and Urgency Decree No. 297/2020, imposing the borders’ closure and stringent restrictions on domestic circulation of individuals. Such measures comprised several exceptions, including activities that were considered “essential” and, therefore, were excluded from such restrictions. Successive Necessity and Urgency Decrees extended the term of the mentioned measures until November 8, 2020. As of November 9, 2020, by Necessity and Urgency Decree No. 875/2020 and its amendments, it was established the Preventive and Compulsory Social Distancing (Di.S.P.O. for its acronym in Spanish) that is in full force and effect through February 28, 2021 and can be extended for as long as it may be considered necessary in view of the epidemiological situation. Subsequently, on December 30, 2020, the Ministry of Health’s Resolution No. 2883/2020, approving the “Strategic COVID-19 Vaccination Plan” in the Republic of Argentina, was issued. It aimed to reduce morbidity, mortality, and socio-economic impacts of the pandemic, based on the stepped and progressive vaccination of certain population groups. Because of the various measures adopted by the Argentine government, and within the scenario of the economic activity’s generalised recession, the Company has implemented a protocol establishing the working conditions to operate in strict compliance with the public health standards issued by national and provincial authorities, in order to minimize the risk of contagion of co-workers, clients and providers, and to enable the business continuity. It is worth emphasising that, as of the date of approval of these consolidated financial statements, the COVID-19 pandemic continues to be a prevalent situation, the duration of which is uncertain, and the measures taken by the different authorities (national, provincial, and pertaining to town) in response thereto are constantly evolving. Although the continuity of the Company’s operation has not been significantly affected, the extent of COVID-19’s impact on the operational and financial performance will depend on the evolution of events (including the spread rate and duration, as well as the national and international governmental measures taken in such regard) and on the impact this situation may cause on our main clients, employees, and providers; all of which is uncertain and, at present, not possible to foresee. However, the Company’s Management does not anticipate that such impacts will affect the business continuity or the ability to meet financial commitments in the next twelve (12) months. |
Significant accounting polici_2
Significant accounting policies and critical accounting judgements and estimates (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Basis of measurement | (a) Basis of measurement The consolidated financial statements have been prepared under the historical cost convention, except for the revaluation of certain financial assets and financial liabilities to fair value. Patagonia Gold Corp. Notes to the Consolidated Financial Statements For the Years Ended December 31, 2021, 2020 and 2019 (In thousands of U.S. dollars unless otherwise stated) |
Consolidation | (b) Consolidation The Company’s consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany transactions, balances and unrealized gains or losses from intercompany transactions are eliminated on consolidation. |
Foreign currency translation | (c) Foreign currency translation The functional currency for the Company and its subsidiaries is determined by the currency of the of the primary economic environment in which it operates. The Company’s functional currency is the Canadian dollar (“CAD”) and the Company’s subsidiaries have functional currencies in United States dollar (“USD”), Chilean Peso (“CH”) and Great Britain Pound (“GBP”). The consolidated financial statements are presented in United States dollars. Prior to January 1, 2019, the functional currency of Patagonia Gold S.A, Minera Minamalu S.A, Leleque Exploracion S.A, Huemules S.A. and Minera Aquiline Argentina S.A.U was the Argentine Peso and Argentina was designated as an hyperinflationary economy. In accordance with IAS 29, Financing Reporting in Hyperinflationary Economies (“IAS 29”), the financial statements of those subsidiaries had been restated after applying a general price index and translated to USD at closing rates before they were included in the consolidated financial statements. Management considered primary and secondary indicators in determining functionary currency including the currency that influences sales, purchases and other costs. Other indicators considered by management include the currency in which funds from financing activities were generated. Based on these indicators, management concluded that effective January 1, 2019, the functional currency of Patagonia Gold S.A, Minera Minamalu S.A, Leleque Exploracion S.A, Huemules S.A. and Minera Aquiline Argentina S.A.U became the USD. The change in functional currency for these subsidiaries has been applied prospectively. As these subsidiaries cease to have Argentine Peso as the functional currency, the Company has discontinued the preparation and presentation of the financial statements in accordance with IAS 29. The amounts expressed at the end of the December 31, 2018 reporting period have been treated as the basis for the carrying amounts effective January 1, 2019 and onwards. In preparing the financial statements of the individual entities, transactions in currencies other than the entity’s functional currency are recognized at the prevailing exchange rates at the date of the transactions. At the end of each reporting period, monetary assets and liabilities denominated in foreign currencies are translated at the rates of exchange prevailing at the reporting date. Non-monetary assets and liabilities are translated at the exchange rate prevailing at the transaction date. Transaction gains and losses resulting from fluctuations in currency exchange rates on transactions denominated in currencies other than the functional currency are recognized as incurred in net income. These financial statements are translated to their USD equivalents using the following methods: - Income and expenses on the statement of loss and comprehensive loss have been translated using the average exchange rates prevailing during the year; - Assets and liabilities have been translated using the exchange rate prevailing at the date of the statement of financial position; - Translation adjustments are recognized in other comprehensive income (loss). |
Financial instruments | (d) Financial instruments Financial assets and financial liabilities are recognised when the Company becomes party to the contractual provisions of the financial instrument. Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, or when the financial asset and substantially all of risks and rewards are transferred. A financial liability is derecognised when it is extinguished, discharged, cancelled or expires. The Company classifies its financial assets into the following categories: those to be measured subsequently at fair value through other comprehensive income (FVOCI), fair value through profit and loss (FVTPL) and those to be held at amortized cost. Classification depends on the business model for managing the financial assets and the contractual terms of the cash flows. Generally, the Company does not acquire financial assets for the purpose of selling in the short term and does not have any financial assets measured at FVTPL in either the current or prior year. The Company’s business model is primarily that of “hold to collect” (where assets are held in order to collect contractual cash flows). See note 22 for the fair value disclosures. Patagonia Gold Corp. Notes to the Consolidated Financial Statements For the Years Ended December 31, 2021, 2020 and 2019 (In thousands of U.S. dollars unless otherwise stated) Financial assets held at amortized cost This classification applies to the Company’s cash and trade receivables, and other receivables which are held under a hold to collect business model and which have cash flows that meet the “solely payments of principal and interest” (SPPI) criteria. At initial recognition, trade and other receivables that do not have a significant financing component, are recognised at their transaction price. Other financial assets are initially recognised at fair value plus related transaction costs; they are subsequently measured at amortized cost using the effective interest method. Any gain or loss on derecognition or modification of a financial asset held at amortized cost is recognised in the consolidated statements of loss and comprehensive loss. Financial assets held at fair value through other comprehensive income (FVOCI) This classification applies to the Company’s other financial assets which includes equity investments and a performance bond (note 10). When these financial assets are derecognised, there is no reclassification of fair value gains or losses previously recognised in other comprehensive income. Impairment of financial assets A forward-looking expected credit loss (ECL) review is required for financial assets held at amortized cost. Recognition of credit losses is no longer dependent on the Company first identifying a credit loss event. The Company considers a broader range of information when assessing credit risk and measuring expected credit losses, including past events, current conditions, reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument. The Company applies the “simplified approach” to trade receivable balances with the exception of certain other receivables where general approach is applied, under which a loss allowance for lifetime expected credit losses is recognised for a financial instrument if there has been a significant increase in credit risk (measured using the lifetime probability of default) since initial recognition of the financial asset. The simplified approach in accounting for trade receivables records the loss allowance as lifetime expected credit losses. These are the expected shortfalls in contractual cash flows, considering the potential for default at any point during the life of the financial instrument. In calculating these losses, the Company uses its historical experience, external indicators and forward-looking information to calculate the expected credit losses. The general approach incorporates a review for any significant increase in counterparty credit risk since inception. Financial liabilities Financial liabilities are obligations to pay cash or other financial assets and are recognised when the Company becomes a party to the contractual provisions of the instrument. All financial liabilities are recorded initially at fair value, net of direct issue costs. Financial liabilities are recorded, subsequent to initial recognition, at amortized cost using the effective interest method, with interest-related charges recognised as an expense in finance cost in the consolidated statements of loss and comprehensive loss. Finance charges, including premiums payable on settlement or redemption and direct issue costs, are charged to the consolidated statements of loss and comprehensive loss on an accruals basis using the effective interest method and are added to the carrying amount of the instrument to the extent that they are not settled in the period in which they arise. |
Cash and equivalents | (e) Cash and equivalents Cash and equivalents include cash on hand, deposits held with banks and other liquid short-term investments with original maturities of three months or less. The Company has no cash equivalents for all periods presented. |
Inventories | (f) Inventories Inventory comprises, gold held on carbon, mineral concentrate and mineralized material stockpiles. They are physically measured or estimated and valued at the lower of cost or net realizable value. Net realizable value is the estimated future sales price of the product the Company expects to realize when the product is processed and sold, less estimated costs to complete production and bring the product to sale. Where the time value of money is material, these future prices and costs to complete are discounted. Stockpiles are measured by estimating the number of tonnes added and removed from the stockpile, the number of contained mineral ounces is based on assay data, and the estimated recovery percentage is based on the expected processing method. Stockpile tonnages are verified by periodic surveys. Patagonia Gold Corp. Notes to the Consolidated Financial Statements For the Years Ended December 31, 2021, 2020 and 2019 (In thousands of U.S. dollars unless otherwise stated) Cost of inventory is determined by using the weighted average method and comprises direct costs, depreciation, depletion and amortization as well as a portion of fixed and variable overhead costs incurred in converting materials into concentrate and ore, based on the normal production capacity. Materials and supplies are valued at the lower of cost or net realizable value. Any provision for obsolescence is determined by reference to specific items of stock. A regular review is undertaken to determine the extent of any provision for obsolescence. |
Mineral properties and exploration and evaluation expenditures | (g) Mineral properties and exploration and evaluation expenditures Exploration and evaluation costs are expensed until the determination of the technical feasibility and the commercial viability of the associated project. Exploration costs include costs directly related to exploration and evaluation activities in the areas of interest. The technical feasibility and commercial viability of extracting a mineral resource is considered to be determinable when economically recoverable reserves are determined to exist, the rights of tenure are current and it is considered probable that the costs will be recouped through successful development and exploitation of the area, or alternatively by sale of the property. This determination is normally evidenced by the completion of a technical feasibility study. Expenditures to develop new mines, to define further mineralization in mineral properties which are in the development or operating stage, and to expand the capacity of operating mines, are capitalized and amortized on a units-of-production basis over proven and probable reserves. Should a property be abandoned, its capitalized costs are charged to the consolidated statements of loss and comprehensive loss. The Company charges to the consolidated statements of loss and comprehensive loss the allocable portion of capitalized costs attributable to properties sold. Capitalized costs are allocated to properties sold based on the proportion of claims sold to the claims remaining within the project area. |
Mining rights | (h) Mining rights Mining rights are rights to explore and mine specified areas of land acquired from the landowner. Mining rights acquired for stated terms in excess of 10 years are capitalized as intangible assets and are measured initially at cost and amortized on a straight-line basis over the term of the rights. Mining rights acquired for undefined terms are capitalized as intangible assets and are measured initially at cost and amortized on a unit of production method over the estimated period of economically recoverable reserves. Amortization is charged to administrative expenses in the consolidated statements of loss and comprehensive loss. |
Property, plant and equipment | (i) Property, plant and equipment Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes expenditures that are directly attributable to the acquisition of an asset. Repairs and maintenance costs are charged to the consolidated statements of loss and comprehensive loss during the period in which they are incurred. Depreciation is calculated to amortize the cost of the property, plant and equipment over their estimated useful lives using the straight-line and unit of production methods. Office equipment, vehicles, machinery and equipment, Mina Martha processing plant, and buildings are stated at cost and depreciated straight line over an estimated useful life of 3 to 20 years. The Company allocates the amount initially recognized in respect of an item of property, plant and equipment to its significant parts and depreciates separately each such part. Residual values, method of depreciation and useful lives of the assets are reviewed annually and adjusted if appropriate. Gains and losses on disposals of property, plant and equipment are determined by comparing the proceeds with the carrying amount of the asset and are included as part of other gains or losses in the consolidated statements of loss and comprehensive loss. Patagonia Gold Corp. Notes to the Consolidated Financial Statements For the Years Ended December 31, 2021, 2020 and 2019 (In thousands of U.S. dollars unless otherwise stated) |
Impairment of long-lived assets | (j) Impairment of long-lived assets Long-lived assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount of assets is the greater of their fair value less costs to sell and value in use. Fair value is based on an estimate of the amount that the Company may obtain in a sale transaction on an arm’s length basis. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For an asset that does not generate cash inflows largely independent of those from other assets, the recoverable amount is determined for the cash generating unit (“CGU”) to which the asset belongs. The Company’s CGUs are the lowest level of identifiable groups of assets that generate cash inflows that are largely independent of the cash inflows from other assets or groups of assets. Where a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual CGUs, otherwise they are allocated to the smallest group of CGUs for which a reasonable and consistent allocation basis can be identified. Future cash flows are estimated based on estimated quantities of recoverable minerals, expected gold and silver (considering current and historical prices, trends and related factors), production levels, operating costs, capital requirements and reclamation costs, all based on life-of-mine plans. Existing proven and probable reserves and value beyond proven and probable reserves, including mineralization other than proven and probable reserves are included when determining the fair value of mine site asset groups at acquisition and, subsequently, in determining whether the assets are impaired. Estimates of recoverable minerals from exploration stage mineral interests are risk adjusted based on management’s relative confidence in such materials. The ability to achieve the estimated quantities of recoverable minerals from exploration stage mineral interests involves further risks in addition to those risk factors applicable to mineral interests where proven and probable reserves have been identified, due to the lower level of confidence that the identified mineralized material could ultimately be mined economically. Assets classified as exploration potential have the highest level of risk that the carrying value of the asset can be ultimately realized, due to the lower level of geological confidence and economic modeling. |
Reclamation and remediation obligations | (k) Reclamation and remediation obligations The Company records a liability and corresponding asset for the present value of the estimated costs of legal and constructive obligations for future site reclamation and closure activities where the liability is more likely than not to exist and a reasonable estimate can be made of the obligation. Such costs arising from the decommissioning of plant and other site preparation work, discounted to their present values using a risk-free discount rate consistent with the timing of the expected costs, are provided for in full as soon as the obligation to incur such costs arises and can be quantified. On recognition of a full provision, an addition is made to property, plant and equipment of the same amount; this addition is then charged against profits on a unit of production basis over the life of the mine. Closure provisions are updated annually for changes in cost estimates as well as for changes to life of mine reserves, with the resulting adjustments made to both the provision balance and the net book value of the associated non-current asset. The obligation is subsequently adjusted at each period to reflect the passage of time (accretion expense) and changes in the estimated future costs of the underlying obligation. The Argentine mining regulations require that mine properties be restored in accordance with specified standards and an approved reclamation plan. Significant reclamation activities include reclaiming refuse and slurry ponds, reclaiming the pit and support acreage at surface mines, and sealing portals at deep mines. The Company accrues for the cost of final mine closure reclamation over the estimated useful mining life of the property. At each period, the Company reviews the entire reclamation liability and makes necessary adjustments for revisions to cost estimates to reflect current experience. |
Income taxes | (l) Income taxes The income tax expense or benefit consists of current and deferred components. Current tax is calculated using tax rates and laws that were enacted or substantively enacted at the statement of financial position date in each of the jurisdictions. Deferred tax is recognized in respect of temporary differences between the carrying amount of assets and liabilities in the consolidated statement of financial position and the corresponding tax bases used in the computation of taxable profit. Deferred tax is calculated based on the expected manner of realization or settlement of the carrying amount of assets and liabilities, using tax rates that are expected to apply in the year of realization or settlement based on tax rates and laws enacted or substantively enacted at the statement of financial position date. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax liabilities are not recognized on temporary differences that arise from goodwill which is not deductible for tax purposes. Patagonia Gold Corp. Notes to the Consolidated Financial Statements For the Years Ended December 31, 2021, 2020 and 2019 (In thousands of U.S. dollars unless otherwise stated) Deferred tax assets are recognized for all deductible temporary differences, carryforward of unused tax credits and unused tax losses to the extent it is probable future taxable profits will be available against which they can be utilized. The carrying amount of deferred tax assets is reviewed at each statement of financial position date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax assets and liabilities are not recognized in respect of temporary differences that arise on initial recognition of assets and liabilities acquired other than in a business combination. Deferred tax assets and liabilities are offset where they relate to income taxes levied by the same taxation authority and the Company has the legal right and intent to offset. The Company operates in multiple jurisdictions which involves dealing with uncertainties and judgments in the application of complex tax regulations. The final taxes paid or recovered are dependent upon many factors including resolutions arising from federal and state audits. The Company changes its tax assets and liabilities in light of the changing facts and circumstances but due to the complexity of the uncertainties in the tax regulations, the ultimate tax liability or asset could be materially different from the Company’s estimate recorded in the consolidated financial statements. |
Share-based payments | (m) Share-based payments The Company offers a share option plan for its directors, officers, employees and consultants. Share options granted to employees and directors are categorised as equity-settled share-based payments. Equity-settled share-based payments are measured at the fair value of goods or services received when the fair value can be reliably estimated. If the fair value of goods and services received cannot be reliably measured, then the fair value of the instrument issued is measured using an appropriate option pricing model at the grant date. For share options granted to directors, officers and employees, the fair value of the options is measured using the Black-Scholes option pricing model. All equity-settled share-based payments are ultimately recognised as an expense in the consolidated statements of loss and comprehensive loss with a corresponding increase to contributed surplus. If vesting periods or other non-market vesting conditions apply, the expense is allocated over the vesting period, based on the best available estimate of the number of share options expected to vest. Estimates are subsequently revised if there is any indication that the number of share options expected to vest differs from previous estimates. Any cumulative adjustment prior to vesting is recognised in the current period. No adjustment is made to any expense recognised in prior periods if share options ultimately exercised are different to that estimated on vesting. Equity-settled share-based payment transactions with parties other than employees are measured at the fair value of the goods and services received, except where that fair value cannot be estimated reliably, in which case they are measured at the fair value of the equity instruments granted, measured at the date the entity obtains the goods or the counterparty renders the service. |
Earnings (loss) per share | (n) Earnings (loss) per share The calculation of earnings (loss) per share (“EPS”) is based on the weighted average number of shares outstanding for each period. The basic EPS is calculated by dividing the income or loss attributable to the equity owners of the Company by the weighted average number of common shares outstanding during the period. The computation of diluted EPS assumes the conversion, exercise or contingent issuance of securities only when such conversion, exercise or issuance would have a dilutive effect on the earnings per share. The treasury stock method is used to determine the dilutive effect of the warrants and share options. When the Company reports a loss, the diluted net loss per common share is equal to the basic net loss per common share due to the anti-dilutive effect of the outstanding warrants and share options. |
Revenue recognition | (o) Revenue recognition The Company recognizes sales revenue in accordance with IFRS 15 when it has satisfied the following criteria: - The Company and the customer have an identifiable contract and are committed to perform their respective obligations; - The Company and the customer can identify each other’s rights regarding the goods to be transferred; - The Company can identify the payment terms for the goods to be transferred; Patagonia Gold Corp. Notes to the Consolidated Financial Statements For the Years Ended December 31, 2021, 2020 and 2019 (In thousands of U.S. dollars unless otherwise stated) - The risk, timing or amount of the Company’s future cashflows is expected to change as a result of the contract; - It is probable that the Company will collect the consideration to which it will be entitled in exchange for the goods that will be transferred to the customer. The Company produces doré and concentrate that is shipped to third-party refiners and smelters, respectively, for processing. The Company enters into contracts to sell its metal to third-party customers which may include the refiners and smelters that process the doré and concentrate. The Company’s performance obligation in these transactions is generally the transfer of metal to the customer. In the case of doré shipments, the Company generally sells refined metal at market prices agreed upon by both parties. The Company also has the right, but not the obligation, to sell a portion of the anticipated refined metal in advance of being fully refined. When the Company sells refined metal or advanced metal, the performance obligation is satisfied when the metal is delivered to the customer. Revenue and Cost of Sales are recorded on a gross basis under these contracts at the time the performance obligation is satisfied. |
Segment reporting | (p) Segment reporting In accordance with IFRS 8 the management approach is used to identify operating segments. An operating segment is a component of an entity (i) that engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of the same entity), (ii) whose operating results are regularly reviewed by the entity’s management, and (iii) for which discrete financial information is available. The Company has identified its reportable segments on the basis of their geographic location. As a result, the Company discloses information geographically based on the location of each of its operations and within Argentina on the basis of operating mines and projects under construction. No operating segments have been aggregated to form the above reportable operating segments. Management monitors the operating results of its business units separately for the purpose of making decisions about resource allocation and performance assessment. |
Business combinations | (q) Business combinations A business combination is defined as an acquisition of assets and liabilities that constitute a business. A business is an integrated set of activities and assets that consist of inputs, including non-current assets, and processes, including operational processes, that when applied to those inputs have the ability to create outputs that provide a return to the Company and its shareholders. A business also includes those assets and liabilities that do not necessarily have all the inputs and processes required to produce outputs, but can be integrated with the inputs and processes of the Company to create outputs. When acquiring a set of activities or assets in the exploration and development stage, which may not have outputs, the Company considers other factors to determine whether the set of activities or assets is a business. Business combinations are accounted for using the acquisition method whereby identifiable assets acquired and liabilities assumed, including contingent liabilities, are recorded at their fair values at the acquisition date. The acquisition date is the date at which the Company obtains control over the acquiree, which is generally the date that consideration is transferred and the Company acquires the assets and assumes the liabilities of the acquiree. The consideration transferred in a business combination is measured at fair value, which is calculated as the sum of the fair values of the assets at the acquisition date transferred by the Company, the liabilities, including contingent consideration, incurred and payable by the Company to former owners of the acquiree and the equity interests issued by the Company. When the cost of the acquisition exceeds the fair value of the identifiable assets acquired and liabilities assumed, the difference is recognized as goodwill. Acquisition related costs are expensed as incurred. When a subsidiary is acquired, the fair value of its identifiable assets and liabilities are finalised within 12 months of the acquisition date. All fair value adjustments are recorded with effect from the date of acquisition and consequently may result in the restatement of previously reported financial results. |
Goodwill | (r) Goodwill Under the acquisition method of accounting, the costs of business combinations are allocated to the assets acquired and liabilities assumed based on the estimated fair value at the date of acquisition. The excess of the fair value of consideration paid over the fair value of the identifiable net assets acquired is recorded as goodwill. Goodwill is not amortized; instead it is tested for impairment in the fourth quarter and also when there is an indicator of impairment. At the date of acquisition, goodwill is assigned to the CGU or group of CGUs that is expected to benefit from the synergies of the business combination. Patagonia Gold Corp. Notes to the Consolidated Financial Statements For the Years Ended December 31, 2021, 2020 and 2019 (In thousands of U.S. dollars unless otherwise stated) The Company identifies any potential impairment by comparing the carrying value of a CGU or group of CGUs to its recoverable amount. The recoverable amount of a CGU or group of CGUs is the higher of its fair value less costs of disposal and its value in use. Both fair value less costs of disposal and value in use are based on estimates of discounted future cash flows or other valuation methods. Cash flows are projected based on past experience, actual operating results and business plans. When the recoverable amount of a CGU or group of CGUs is less than its carrying value, the recoverable amount is determined for its identifiable assets and liabilities. The excess of the recoverable amount of the CGU or group of CGUs over the total of the amounts assigned to its assets and liabilities is the recoverable amount of goodwill. An impairment charge is recognized for any excess of the carrying value of goodwill over its recoverable amount. Goodwill impairment charges are not reversible. |
Equity | (s) Equity Capital stock represents the proceeds received on the issuance of common shares. Proceeds from unit placements are allocated between common shares and warrants using the relative fair value method. The fair value of the Company’s common shares is determined using the closing trading price on the date of issuance, and the fair value of the warrants is determined using the Black-Scholes option-pricing model. The proceeds allocated to warrants are recorded in contributed surplus. Costs directly attributable to the issuance of shares and warrants are treated as a reduction in capital stock and warrants on a pro-rata basis. |
New accounting standards issued but not yet effective | (t) New accounting standards issued but not yet effective The IASB issued an amendment to IAS 16, Property, Plant and Equipment, to prohibit the deducting from property, plant and equipment amounts received from selling items produced while preparing an asset for its intended use. Instead, sales proceeds and its related costs must be recognized in profit or loss. The amendment will require companies to distinguish between costs associated with producing and selling items before the item of property, plant and equipment is available for use and costs associated with making the item of property, plant and equipment available for its intended use. The amendment is effective for annual periods beginning on or after January 1, 2022, with earlier application permitted. The adoption of this amendment will not have any impact on the Company’s consolidated financial statements. The IASB issued an amendment to IAS 1, Presentation of Financial Statements, to clarify one of the requirements under the standard for classifying a liability as non-current in nature, specifically the requirement for an entity to have the right to defer settlement of the liability for at least 12 months after the reporting period. The amendment includes: ● Specifying that an entity’s right to defer settlement must exist at the end of the reporting period; ● Clarifying that classification is unaffected by management’s intentions or expectations about whether the entity will exercise its right to defer settlement; ● Clarifying how lending conditions affect classification; and ● Clarifying requirements for classifying liabilities an entity will or may settle by issuing its own equity instruments. The Company will evaluate the impact, if any, on its consolidated financial statements prior to the effective date of January 1, 2023. |
Nature of business (Tables)
Nature of business (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Nature Of Business | |
Schedule of subsidiaries | The consolidated financial statements include the accounts of the following subsidiaries after elimination of intercompany transactions and balances: Schedule of subsidiaries Corporation Incorporation Percentage ownership Functional currency Business purpose Patagonia Gold S.A. (“PGSA”) Argentina 95.3 US$ Production and Exploration Stage Minera Minamalu S.A. Argentina 100 US$ Exploration Stage Huemules S.A. Argentina 100 US$ Exploration Stage Leleque Exploración S.A. Argentina 100 US$ Exploration Stage Patagonia Gold Limited (formerly Patagonia Gold PLC) UK 100 GBP$ Holding Minera Aquiline S.A.U. Argentina 100 US$ Exploration Stage Patagonia Gold Canada Inc. Canada 100 CAD$ Holding Patagonia Gold Chile S.C.M. Chile 100 CH$ Exploration Stage Ganadera Patagonia S.R.L. Argentina 100 US$ Land Holding 1272680 B.C. Ltd (formerly 1494716 Alberta Ltd.) Canada 100 CAD$ Nominee Shareholder |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule Of Inventories | |
Schedule of inventories | Schedule of inventories December 31, 2021 December 31, 2020 $’000 $’000 Gold held on carbon $ 1,669 $ 1,421 Materials and supplies 2,090 1,868 Inventories $ 3,759 $ 3,289 |
Mineral properties (Tables)
Mineral properties (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Mineral Properties | |
Schedule of mining properties | Schedule of mining properties Mining assets Surface rights acquired Total $’000 $’000 $’000 Cost Balance – January 1, 2020 $ 23,181 $ 6,459 $ 29,640 Additions 942 - 942 Balance - December 31, 2020 $ 24,123 $ 6,459 $ 30,582 Mineral properties, cost, beginning $ 24,123 $ 6,459 $ 30,582 Additions 2,951 - 2,951 Balance – December 31, 2021 $ 27,074 $ 6,459 $ 33,533 Mineral properties, cost, ending $ 27,074 $ 6,459 $ 33,533 Depletion Balance - January 1, 2020 $ 13,275 $ 908 $ 14,183 Change for the period 477 - 477 Balance - December 31, 2020 $ 13,752 $ 908 $ 14,660 Mineral properties, accumulated depletion, beginning $ 13,752 $ 908 $ 14,660 Charge for the period 1,272 - 1,272 Depletion charge for the year for mineral properties 1,272 - 1,272 Impairment 1,489 - 1,489 Balance – December 31, 2021 $ 16,513 $ 908 $ 17,421 Mineral properties, accumulated depletion, ending $ 16,513 $ 908 $ 17,421 Net book value December 31, 2020 $ 10,371 $ 5,551 $ 15,922 December 31, 2021 $ 10,561 $ 5,551 $ 16,112 Net book value $ 10,561 $ 5,551 $ 16,112 |
Reclamation and remediation o_2
Reclamation and remediation obligations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Reclamation And Remediation Obligations | |
Schedule of changes to asset retirement obligation liability | The following table describes the changes to the Company’s reclamation and remediation obligation liability: Schedule of changes to asset retirement obligation liability December 31, 2021 December 31, 2020 $’000 $’000 Reclamation and remediation obligation - beginning of year $ 5,139 $ 5,803 Change in estimate 983 (677 ) Accretion expense 66 13 Reclamation and remediation obligation - end of year $ 6,188 $ 5,139 |
Mining rights (Tables)
Mining rights (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Mining Rights | |
Schedule of mining rights | Schedule of mining rights Fomicruz Agreement Minera Aquiline Argentina Total $’000 $’000 $’000 Balance – January 1, 2020 $ 3,188 $ 13,809 $ 16,997 Amortization (100 ) - (100 ) Exchange differences - 298 298 Balance - December 31, 2020 $ 3,088 $ 14,107 $ 17,195 Mining rights, beginning balance $ 3,088 $ 14,107 $ 17,195 Amortization (100 ) - (100 ) Exchange differences - 50 50 Balance –December 31, 2021 $ 2,988 $ 14,157 $ 17,145 Mining rights, ending balance $ 2,988 $ 14,157 $ 17,145 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of property plant and equipment | Schedule of property plant and equipment Plant Buildings Vehicles and equipment Improvements and advances Total $’000 $’000 $’000 $’000 $’000 Cost Balance – January 1, 2020 $ 15,326 $ 1,979 $ 23,024 $ 852 $ 41,181 Additions 114 - 260 602 976 Disposals - - (14 ) (415 ) (429 ) Balance – December 31, 2020 $ 15,440 $ 1,979 $ 23,270 $ 1,039 $ 41,728 Property, plant and equipment, cost, beginning $ 15,440 $ 1,979 $ 23,270 $ 1,039 $ 41,728 Additions 1 - 585 1,253 1,839 Disposals - - (84 ) - (84 ) Transfers 36 - 20 (56 ) - Balance – December 31, 2021 $ 15,477 $ 1,979 $ 23,791 $ 2,236 $ 43,483 Property, plant and equipment, cost, ending $ 15,477 $ 1,979 $ 23,791 $ 2,236 $ 43,483 Accumulated depreciation Balance – January 1, 2020 $ 13,130 $ 201 $ 12,215 $ - $ 25,546 Disposals - - (12 ) - (12 ) Depreciation for the year 272 161 2,528 - 2,961 Balance – December 31, 2020 $ 13,402 $ 362 $ 14,731 $ - $ 28,495 Property, plant and equipment, accumulated depreciation, beginning $ 13,402 $ 362 $ 14,731 $ - $ 28,495 Disposals - - (83 ) - (83 ) Depreciation for the year 281 161 2,154 - 2,596 Balance – December 31, 2021 $ 13,683 $ 523 $ 16,802 $ - $ 31,008 Property, plant and equipment, accumulated depreciation, ending $ 13,683 $ 523 $ 16,802 $ - $ 31,008 Net book value December 31, 2020 $ 2,038 $ 1,617 $ 8,539 $ 1,039 $ 13,233 December 31, 2021 $ 1,794 $ 1,456 $ 6,989 $ 2,236 $ 12,475 Property, plant and equipment, net book value $ 1,794 $ 1,456 $ 6,989 $ 2,236 $ 12,475 |
Receivables (Tables)
Receivables (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of receivables | Schedule of receivables December 31, December 31, 2021 2020 $’000 $’000 Receivable from sales $ 112 $ 156 Recoverable value added tax (“VAT”) 1,849 1,217 Other receivables 551 668 Total $ 2,512 $ 2,041 |
Other receivables (Tables)
Other receivables (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Receivables | |
Schedule of other receivables | Schedule of other receivables December 31 December 31, 2021 2020 $’000 $’000 Recoverable value added tax (“VAT”) $ 1,019 $ 722 Other receivables 402 2,822 Total $ 1,421 $ 3,544 |
Bank indebtedness (Tables)
Bank indebtedness (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Bank Indebtedness | |
Schedule of credit facility | Schedule of credit facility December 31, December 31, 2021 2020 $’000 $’000 A credit facility with a limit of $ 6,600 December 31, 2022 1.5% 1 1 $ 3,915 $ 9,636 A credit facility with an Argentinian bank with a limit of $ 1,947 200,000 April 30, 2022 42% 1,941 - A credit facility with an Argentinian bank with a limit of $ 1,460 150,000 June 30, 2022 35% 850 - Bank indebtedness $ 6,706 $ 9,636 1 - As at December 31, 2021, the interest rate was 1.65% 2.75% |
Accounts payable and accrued _2
Accounts payable and accrued liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of accounts payable and accrued liabilities | Schedule of accounts payable and accrued liabilities December 31, December 31, 2021 2020 $’000 $’000 Trade accounts payable and accrued liabilities $ 4,207 $ 2,510 Income tax 50 - Other accruals 1 1 2,602 1,874 Accounts payable to related parties (note 20) 208 144 Total $ 7,067 $ 4,528 1 – As at December 31, 2021, other accruals consists of taxes payable of $ 1,993 1,449 609 425 |
Loan payable, lease payable a_2
Loan payable, lease payable and current portion of long-term debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Loan Payable Lease Payable And Current Portion Of Long-term Debt | |
Schedule of loan payable, lease payable and current portion of long-term debt | Schedule of loan payable, lease payable and current portion of long-term debt December 31, December 31, 2021 2020 $’000 $’000 Current portion of long-term debt (note 20) $ 508 $ 340 Leases payable 9 23 Total $ 517 $ 363 |
Long-term debt (Tables)
Long-term debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Long-term Debt | |
Schedule of long-term debt | Schedule of long-term debt December 31, December 31, 2021 2020 $’000 $’000 Loan to related party secured by a letter of guarantee from the Company, at 5% December 31, 2023 $ 13,961 $ 13,961 Loan secured by assets of the Company, at 5.75% 2022 207 448 Loan secured by assets of the Company payable 9% 2023 556 - Debt 556 - Accrued interest on debt 1,546 848 Subtotal $ 16,270 $ 15,257 Less current portion (508 ) (340 ) Long-term debt $ 15,762 $ 14,917 |
Schedule of principal payments on long-term debt | Principal payments on long-term debts are due as followed: Schedule of principal payments on long-term debt Year ending December 31, 2022 508 2023 15,762 |
Net loss per share (Tables)
Net loss per share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Profit or loss [abstract] | |
Schedule of net loss per share | The net loss per share is as follows: Schedule of net loss per share December 31, December 31, December 31, 2021 2020 2019 Net loss ($’000) $ (11,266 ) $ (4,381 ) $ (12,354 ) Weighted average number of common shares outstanding – basic and diluted 446,366,938 325,483,780 282,306,312 Net loss per share – basic and diluted $ (0.025 ) $ (0.013 ) $ (0.044 ) |
Capital stock (Tables)
Capital stock (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Summary of common outstanding | Summary of common outstanding Number of common Amount shares outstanding $’000 Balance at January 1, 2020 317,943,990 $ 2,588 Shares issued to settle debts 45,241,388 4,749 Share repurchased (155,000 ) (17 ) Balance at December 31, 2020 363,030,378 $ 7,320 Shares issued in private placement 104,086,063 4,270 Share issuance costs - (326 ) Share repurchased (550,000 ) (20 ) Balance at December 31, 2021 466,566,441 $ 11,244 |
Summary of stock option activity | Summary of stock option activity Year ended December 31, 2021 Year ended December 31, 2020 Number of options Weighted Average Price (CAD) Number of options Weighted Average Price (CAD) Balance, beginning of year 17,250,000 $ 0.118 7,650,000 $ 0.065 Granted - - 9,600,000 0.160 Balance, end of year 17,250,000 $ 0.118 17,250,000 $ 0.118 |
Summary of stock options outstanding | As at December 31, 2021, the following stock options were outstanding: Summary of stock options outstanding Exercise price (CAD) Options vested Options unvested Total outstanding Remaining contractual life (years) Expiry date $ 0.065 7,650,000 - 7,650,000 2.74 September 25, 2024 $ 0.160 3,200,000 6,400,000 9,600,000 3.62 August 13, 2025 10,850,000 6,400,000 17,250,000 3.23 |
Summary of stock option measurement assumptions | Summary of stock option measurement assumptions Discount rate 0.35 % Expected volatility 172.95 % Expected life (years) 5 Expected dividend yield 0 % Forfeiture rate 0 % Stock price CAD $ 0.15 |
Summary of agent compensation options | Summary of agent compensation options Year ended December 31, 2021 Number of Agent compensation options Weighted average price (CAD) Balance, beginning of year - $ - Issued 2,509,586 0.09 Balance, end of year 2,509,586 $ 0.09 |
Summary of agent compensation options measurement assumptions | Summary of agent compensation options measurement assumptions Discount rate 0.25 % Expected volatility 140.69 % Expected life (years) 3 Expected dividend yield 0 % Unit price CAD $ 0.09 |
Summary of agent compensation outstanding options | Summary of agent compensation outstanding options Exercise price (CAD) Number outstanding Remaining Contractual Life (Years) Expiry date $ 0.09 2,509,586 2.19 March 10, 2024 |
Summary of stock warrants activity | Summary of stock warrants activity Year ended December 31, 2021 Number of warrants Weighted average price (CAD) Balance, beginning of year - $ - Issued 104,086,063 0.13 Balance, end of year 104,086,063 $ 0.13 |
Summary of warrants fair value measurements | Summary of warrants fair value measurements Discount rate 0.25 % Expected volatility 140.69 % Expected life (years) 3 Expected dividend yield 0 % Stock price CAD $ 0.09 |
Summary of warrants outstanding | Summary of warrants outstanding Exercise price Number outstanding Remaining Contractual Life (Years) Expiry date $ 0.13 104,086,063 2.19 March 10, 2024 |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions | |
Summary of related party transactions and balances | Summary of related party transactions and balances Name and Principal Position Remuneration, fees or interest expense Loans or Advances Remuneration, fees, or interest payments Loan payments Included in Accounts Payable Included in Loan Payable and Long-term debt (note 17) Year ended December 31, As at December 31, 2021 and 2020 $’000 $’000 $’000 $’000 $’000 $’000 A company controlled by a 2021 - - - - - - director 2020 262 - - 6,636 - - expenses 2019 - - - - A company controlled by a 2021 762 - 23 - 166 15,507 director 2020 703 6,053 212 - 126 14,808 expenses 2019 346 7,908 33 - 2021 447 - 423 - 42 - Directors 2020 446 - 544 - 18 - - salaries and wages 2019 337 - 317 - 2021 - - - - - - Director 2020 - 532 962 3,270 - - -loans 2019 - 347 - - |
Summary of remuneration of directors and officers | The remuneration of Directors and Officers of the Company was as follows: Summary of remuneration of directors and officers 2021 2020 2019 Year ended December 31, 2021 2020 2019 Salaries and benefits $ 635 $ 820 $ 375 Director’s fees 72 71 30 Share-based compensation 228 230 51 Remuneration management compensation $ 935 $ 1,121 $ 456 |
Administrative expenses (Tables
Administrative expenses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Summary of administrative expenses | Summary of administrative expenses 2021 2020 2019 Year ended December 31, 2021 2020 2019 $’000 $’000 $’000 General and administrative $ 2,677 $ 2,353 $ 4,175 Argentina statutory taxes 996 654 641 Professional fees 746 986 1,566 Operating leases 59 132 130 Directors’ remuneration 221 244 259 Loss (gain) on sale of property, plant and equipment (336 ) 194 (76 ) Depreciation of property, plant and equipment 2,596 2,961 3,028 Depreciation allocated to inventory (2,158 ) (2,605 ) (2,501 ) Depletion of mineral properties 1,272 477 3,456 Amortization of mining rights 100 100 100 Consulting fees 51 115 18 Transaction taxes expense 203 - 248 Total $ 6,427 $ 5,611 $ 11,044 |
Financial instruments (Tables)
Financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Summary of fair values of financial instruments in levels of assets and liabilities | As at December 31, 2021, there were no changes in the levels in comparison to December 31, 2020. The fair values of financial instruments are summarized as follows: Summary of fair values of financial instruments in levels of assets and liabilities December 31, 2021 December 31, 2020 Carrying amount Fair value Carrying amount Fair value $’000 $’000 $’000 $’000 Financial assets Amortized cost Cash 291 291 819 819 Receivables and other receivable ¹ 1,065 1,065 3,646 3,646 Fair value through other comprehensive income Other financial assets (Level 1) 15 15 16 16 Financial liabilities Amortized cost Bank indebtedness 6,706 6,706 9,636 9,636 Accounts payable and accrued liabilities 7,067 7,067 4,528 4,528 Loan payable and current portion of long-term debt 517 517 363 363 Long-term debt 15,762 15,762 14,917 14,917 1 Amounts exclude value added tax (“VAT”) recoverable of $2,868 and $1,939 as December 31, 2021 and 2020. ¹ Amounts exclude value added tax (“VAT”) recoverable of $ 2,868 1,939 |
Summary of financial assets and liabilities denominated for foreign currencies | As at December 31, 2021, the Company had financial assets and liabilities denominated in the following foreign currencies: Summary of financial assets and liabilities denominated for foreign currencies CAD AR$ USD Euro GBP Cash $ 107 $ 130 54 $ - $ - Other working capital (deficit) items - net (140 ) (5,218 ) (8,080 ) (207 ) 19 Non-current financial assets - 401 - - 15 Non-current financial liabilities - - (15,762 ) - - |
Schedule of company obligations by contractual maturity | The contractual obligations of the Company’s liabilities are as follows: Schedule of company obligations by contractual maturity Total Less than 1 year 1-3 3-5 More than 5 years As of December 31, 2021 Payments Due by Period Total Less than 1 year 1-3 3-5 More than 5 years Bank indebtedness $ 6,706 $ 6,706 - - - Accounts payable and accrued liabilities 6,859 6,859 - - - Accounts payable with related parties 208 208 - - - Loan payable and current portion of long-term debt 517 517 - - - Long-term debt 255 - 255 - - Long-term debt with related parties 15,507 - 15,507 - - Reclamation and remediation obligations 6,188 - 5,142 - 1,046 Other long-term payables 8 - 8 - - Total $ 36,248 $ 14,290 $ 20,912 - $ 1,046 |
Segment reporting (Tables)
Segment reporting (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of segment reporting information | The Company’s net income/(loss) and its geographic allocation of total assets and total liabilities is summarized as follows: Schedule of segment reporting information For the year ended December 31, 2021 Argentina Lomada Project Cap- Oeste Project Calcatreu Project Martha and La Josefina Projects Argentina Uruguay and Chile UK North America Total Revenue $ 4,177 $ 13,927 $ - $ - $ - $ - $ - $ 18,104 Cost of sales (6,422 ) (7,137 ) - - - - - (13,559 ) Gross profit (loss) $ (2,245 ) $ 6,790 $ - $ - $ - $ - $ - $ 4,545 Operating expense Exploration expense $ - $ - $ (1,576 ) $ (91 ) $ (2,937 ) $ - $ - $ (4,604 ) Repair and maintenance - - - (658 ) - - - (658 ) Administrative expenses (808 ) (464 ) (359 ) - (3,143 ) (185 ) (930 ) (5,889 ) Depreciation expense - - (22 ) - (416 ) (100 ) - (538 ) Impairment of mineral properties (989 ) - - - (500 ) - - (1,489 ) Share-based payments - - - - - - (362 ) (362 ) Interest expense - - (12 ) - (652 ) (461 ) (311 ) (1,436 ) Total operating expense $ (1,797 ) $ (464 ) $ (1,969 ) $ (749 ) $ (7,648 ) $ (746 ) $ (1,603 ) $ (14,976 ) Other income/(expense) Interest income $ - $ - $ 1 $ - $ 220 $ - $ - $ 221 Gain/(loss) on foreign exchange - - (106 ) - (255 ) 114 23 (224 ) Accretion expense (32 ) (11 ) - (23 ) - - - (66 ) Write-down of other receivables - - - - (2,323 ) - - (2,323 ) Other expenses - - 1,380 - - - - 1,380 Total other income/(expense) $ (32 ) $ (11 ) $ 1,275 $ (23 ) $ (2,358 ) $ 114 $ 23 $ (1,012 ) Income/(loss) – before income tax $ (4,074 ) $ 6,315 $ (694 ) $ (772 ) $ (10,006 ) $ (632 ) $ (1,580 ) $ (11,443 ) Income tax/(benefit) - - (172 ) (387 ) 736 - - 177 Net income/(loss) $ (4,074 ) $ 6,315 $ (866 ) $ (1,159 ) $ (9,270 ) $ (632 ) $ (1,580 ) $ (11,266 ) Patagonia Gold Corp. Notes to the Consolidated Financial Statements For the Years Ended December 31, 2021, 2020 and 2019 (In thousands of U.S. dollars unless otherwise stated) For the year ended December 31, 2020 Argentina Lomada Project Cap- Oeste Project Calcatreu Project Martha and La Josefina Projects Argentina Uruguay and Chile UK North America Total Revenue $ 6,482 $ 12,417 $ - $ 950 $ - $ - $ - $ 19,849 Cost of sales (4,391 ) (6,589 ) - (2,267 ) - - - (13,247 ) Gross profit (loss) $ 2,091 $ 5,828 $ - $ (1,317 ) $ - $ - $ - $ 6,602 Operating expense Exploration expense $ - $ - $ (884 ) $ (83 ) $ (1,336 ) $ - $ - $ (2,303 ) Administrative expenses - (495 ) (217 ) - (2,946 ) (212 ) (1,285 ) (5,155 ) Depreciation expense - - (18 ) - (338 ) (100 ) - (456 ) Share-based payments - - - - - - (382 ) (382 ) Interest expense - - (1 ) - (318 ) (610 ) (1,171 ) (2,100 ) Total operating expense $ - $ (495 ) $ (1,120 ) $ (83 ) $ (4,938 ) $ (922 ) $ (2,838 ) $ (10,396 ) Other income/(expense) Interest income $ - $ - $ 1 $ - $ 124 $ - $ - $ 125 Gain/(loss) on foreign exchange - - 713 - (1,159 ) (369 ) 30 (785 ) Accretion expense (6 ) (3 ) - (4 ) - - - (13 ) Other expenses - - (297 ) - 2,452 - - 2,155 Total other income/(expense) $ (6 ) $ (3 ) $ 417 $ (4 ) $ 1,417 $ (369 ) $ 30 $ 1,482 Income/(loss) – before income tax $ 2,085 $ 5,330 $ (703 ) $ (1,404 ) $ (3,521 ) $ (1,291 ) $ (2,808 ) $ (2,312 ) Income tax/(benefit) - - 138 - (2,207 ) - - (2,069 ) Net income/(loss) $ 2,085 $ 5,330 $ (565 ) $ (1,404 ) $ (5,728 ) $ (1,291 ) $ (2,808 ) $ (4,381 ) Patagonia Gold Corp. Notes to the Consolidated Financial Statements For the Years Ended December 31, 2021, 2020 and 2019 (In thousands of U.S. dollars unless otherwise stated) For the year ended December 31, 2019 Argentina Lomada Project Cap- Oeste Project Calcatreu Project Martha and La Josefina Projects Argentina Uruguay and Chile UK North America Total Revenue $ 4,750 $ 14,903 $ - $ 2,285 $ - $ - $ - $ 21,938 Cost of sales (3,765 ) (11,828 ) - (1,545 ) - - - (17,138 ) Gross profit (loss) $ 985 $ 3,075 $ - $ 740 $ - $ - $ - $ 4,800 Operating expense Exploration expense $ - $ - $ (1,300 ) $ (321 ) $ (987 ) $ - $ - $ (2,608 ) Administrative expenses (2,860 ) (596 ) (279 ) (871 ) (4,232 ) (1,433 ) (307 ) (10,578 ) Depreciation expense - - (17 ) (115 ) (234 ) (100 ) - (466 ) Impairment of mineral properties - - - - - (1,996 ) - (1,996 ) Share-based payments - - - - - (40 ) (87 ) (127 ) Interest expense - - - - (765 ) (782 ) (584 ) (2,131 ) Total operating expense $ (2,860 ) $ (596 ) $ (1,596 ) $ (1,307 ) $ (6,218 ) $ (4,351 ) $ (978 ) $ (17,906 ) Other income/(expense) Interest income $ - $ - $ 34 $ - $ 157 $ - $ - $ 191 Gain/(loss) on foreign exchange - - (10 ) 1,714 (1,082 ) (467 ) 326 481 Accretion expense (7 ) (12 ) - (16 ) - - - (35 ) Total other income/(expense) $ (7 ) $ (12 ) $ 24 $ 1,698 $ (925 ) $ (467 ) $ 326 $ 637 Income/(loss) – before income tax $ (1,882 ) $ 2,467 $ (1,572 ) $ 1,131 $ (7,143 ) $ (4,818 ) $ (652 ) $ (12,469 ) Income tax/(benefit) - - (869 ) (2,030 ) 3,014 - - 115 Net income/(loss) $ (1,882 ) $ 2,467 $ (2,441 ) $ (899 ) $ (4,129 ) $ (4,818 ) $ (652 ) $ (12,354 ) Patagonia Gold Corp. Notes to the Consolidated Financial Statements For the Years Ended December 31, 2021, 2020 and 2019 (In thousands of U.S. dollars unless otherwise stated) Total Assets Total liabilities December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 $’000 $’000 $’000 $’000 Argentina – Cap-Oeste $ 12,263 $ 14,585 $ 2,080 $ 1,880 Argentina – Lomada 7,038 4,616 4,899 3,808 Argentina – Calcatreu 15,977 15,343 1,019 490 Argentina – Martha & La Josefina 12,086 12,704 4,994 2,298 Argentina and Chile 6,139 8,553 7,439 5,355 United Kingdom 138 122 11,869 15,678 North America 4,098 4,145 7,743 9,154 Total $ 57,739 $ 60,068 $ 40,043 $ 38,663 |
Capital Management (Tables)
Capital Management (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of activities of company’s capital | The Company’s capital as at December 31, 2021 and 2020 is as follows: Schedule of activities of company’s capital December 31, December 31, 2021 2020 $’000 $’000 Bank indebtedness $ 6,706 $ 9,636 Loan payable and current portion of long-term debt 517 363 Long-term debt 255 109 Long-term debt with related parties 15,507 14,808 Shareholders’ equity attributable to the parent 19,088 22,700 Total $ 42,073 $ 47,616 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of component of income tax expense (benefit) | Schedule of component of income tax expense (benefit) December 31, 2021 December 31, 2020 December 31, 2019 Current tax expense (benefit) Current period $ 51 $ - $ 47 Deferred tax expense (benefit) Current period 160 2,096 (350 ) Prior period tax adjustments (388 ) (27 ) 188 Total income tax expense (benefit) $ (177 ) $ 2,069 $ (115 ) |
Schedule of reconciliation of income taxes | The actual income tax provision differs from the expected amount calculated by applying the Canadian parent corporate tax rate to income before tax. These differences result from the following: Schedule of reconciliation of income taxes December 31, 2021 December 31, 2020 December 31, 2019 Loss before tax $ (11,443 ) $ (2,312 ) $ (12,469 ) Statutory income tax rate 25 % 25 % 25 % Expected income tax (benefit) $ (2,861 ) $ (578 ) $ (3,117 ) Increase (decrease) resulting from: Non-taxable items 6,415 2,005 118 Change in unrecognized deferred tax assets (1,234 ) 534 1,335 Tax rate changes, tax rate differences (2,109 ) 135 1,361 Prior period tax adjustments (388 ) (27 ) 188 Total income tax expense (benefit) $ (177 ) $ 2,069 $ (115 ) |
Schedule of components of deferred tax assets and liabilities | (b) Components of deferred tax assets and liabilities Schedule of components of deferred tax assets and liabilities Deferred tax assets are attributable to the following: December 31, 2021 December 31, 2020 Property, plant and equipment $ 615 $ 869 Mineral properties 374 - Loss carryforwards 1,000 793 Other 2,489 2,898 Deferred tax assets 4,478 4,560 Deferred tax liabilities are attributable to the following: December 31, 2021 December 31, 2020 Property, plant and equipment $ (5,678 ) $ (5,552 ) Mineral properties (2,374 ) (1,741 ) Long-term debt - (322 ) Other (221 ) (968 ) Deferred tax liabilities (8,273 ) (8,583 ) Set-off of deferred tax assets 4,478 4,560 Net deferred tax liability $ (3,795 ) $ (4,023 ) |
Schedule of movement of deferred tax assets and liabilities | (c) Movement of deferred tax assets and liabilities Schedule of movement of deferred tax assets and liabilities Balance December 31, 2020 Recognized in net income (loss) Balance December 31, 2021 Property, plant and equipment $ 869 $ (254 ) $ 615 Mineral properties - 374 374 Loss carryforwards 793 207 1,000 Other 2,898 (409 ) 2,489 Property, plant and equipment (5,552 ) (126 ) (5,678 ) Mineral properties (1,741 ) (633 ) (2,374 ) Long-term debt (322 ) 322 - Other (968 ) 747 (221 ) Deferred tax assets and liabilities $ (4,023 ) $ 228 $ (3,795 ) Balance December 31, 2019 Recognized in net income (loss) Balance December 31, 2020 Property, plant and equipment $ 786 $ 83 $ 869 Loss carryforwards 2,385 (1,592 ) 793 Other 1,428 1,470 2,898 Property, plant and equipment (4,263 ) (1,289 ) (5,552 ) Mineral properties (1,741 ) - (1,741 ) Long-term debt (322 ) - (322 ) Other (227 ) (741 ) (968 ) Deferred tax assets and liabilities $ (1,954 ) $ (2,069 ) $ (4,023 ) |
Schedule of loss carryforwards | Deferred tax assets have not been recognized in respect of the following items: Schedule of loss carryforwards December 31, 2021 December 31, 2020 Deductible temporary differences 119,456 103,894 Tax losses 27,663 24,204 Loss carryforwards 147,119 128,098 |
Schedule of subsidiaries (Detai
Schedule of subsidiaries (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Patagonia Gold S.A. ("PGSA") [Member] | |
Guarantor and Issuer, Guaranteed Security [Line Items] | |
Incorporation | Argentina |
Percent ownership | 95.30% |
Functional currency | US$ |
Business purpose | Production and Exploration Stage |
Minera Minamalu S.A. [Member] | |
Guarantor and Issuer, Guaranteed Security [Line Items] | |
Incorporation | Argentina |
Percent ownership | 100.00% |
Functional currency | US$ |
Business purpose | Exploration Stage |
Huemules S.A [Member] | |
Guarantor and Issuer, Guaranteed Security [Line Items] | |
Incorporation | Argentina |
Percent ownership | 100.00% |
Functional currency | US$ |
Business purpose | Exploration Stage |
Leleque Exploracion S.A [Member] | |
Guarantor and Issuer, Guaranteed Security [Line Items] | |
Incorporation | Argentina |
Percent ownership | 100.00% |
Functional currency | US$ |
Business purpose | Exploration Stage |
Patagonia Gold Limited [Member] | |
Guarantor and Issuer, Guaranteed Security [Line Items] | |
Incorporation | UK |
Percent ownership | 100.00% |
Functional currency | GBP$ |
Business purpose | Holding |
Minera Aquiline S.A.U [Member] | |
Guarantor and Issuer, Guaranteed Security [Line Items] | |
Incorporation | Argentina |
Percent ownership | 100.00% |
Functional currency | US$ |
Business purpose | Exploration Stage |
Patagonia Gold Canada Inc [Member] | |
Guarantor and Issuer, Guaranteed Security [Line Items] | |
Incorporation | Canada |
Percent ownership | 100.00% |
Functional currency | CAD$ |
Business purpose | Holding |
Patagonia Gold Chile S.C.M [Member] | |
Guarantor and Issuer, Guaranteed Security [Line Items] | |
Incorporation | Chile |
Percent ownership | 100.00% |
Functional currency | CH$ |
Business purpose | Exploration Stage |
Ganadera Patagonia S.R.L [Member] | |
Guarantor and Issuer, Guaranteed Security [Line Items] | |
Incorporation | Argentina |
Percent ownership | 100.00% |
Functional currency | US$ |
Business purpose | Land Holding |
Bc Ltd [Member] | |
Guarantor and Issuer, Guaranteed Security [Line Items] | |
Incorporation | Canada |
Percent ownership | 100.00% |
Functional currency | CAD$ |
Business purpose | Nominee Shareholder |
Nature of business (Details Nar
Nature of business (Details Narrative) | Jul. 24, 2019shares |
Nature Of Business | |
Interest rate basis | Hunt on the basis of 10.76 Hunt shares for each PGP share |
Common shares issued | 254,355,192 |
Ownership interest | 80.00% |
Basis of presentation (Details
Basis of presentation (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
IfrsStatementLineItems [Line Items] | |||
Proceeds from loans with related parties | $ 593 | $ 255 | |
Cash flows from (used in) operating activities | $ (591) | 58 | 5,264 |
Cash flows from (used in) financing activities | $ 3,867 | 509 | 338 |
Bottom of range [member] | |||
IfrsStatementLineItems [Line Items] | |||
Cash flows from (used in) operating activities | 35 | 5,009 | |
Top of range [member] | |||
IfrsStatementLineItems [Line Items] | |||
Cash flows from (used in) financing activities | $ 1,202 | $ 593 |
Going concern (Details Narrativ
Going concern (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net loss | $ 11,266 | $ 4,381 | $ 12,354 |
Negative working capital | 7,728 | 8,378 | |
Accumulated deficit | $ 201,710 | $ 190,541 |
Significant accounting polici_3
Significant accounting policies and critical accounting judgements and estimates (Details Narrative) | 12 Months Ended |
Dec. 31, 2021 | |
Estimated useful life | Office equipment, vehicles, machinery and equipment, Mina Martha processing plant, and buildings are stated at cost and depreciated straight line over an estimated useful life of 3 to 20 years. |
Schedule of inventories (Detail
Schedule of inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule Of Inventories | ||
Gold held on carbon | $ 1,669 | $ 1,421 |
Materials and supplies | 2,090 | 1,868 |
Inventories | $ 3,759 | $ 3,289 |
Inventories (Details Narrative)
Inventories (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule Of Inventories | |||
Write-down of inventory | $ 1,103 | $ 2,368 | |
Inventory expensed | $ 9,927 | $ 8,789 | $ 10,890 |
Schedule of mining properties (
Schedule of mining properties (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
IfrsStatementLineItems [Line Items] | ||
Mineral properties, cost, beginning | $ 30,582 | $ 29,640 |
Additions | 2,951 | 942 |
Mineral properties, cost, ending | 33,533 | 30,582 |
Mineral properties, accumulated depletion, beginning | 14,660 | 14,183 |
Depletion charge for the year for mineral properties | 1,272 | 477 |
Impairment | 1,489 | |
Mineral properties, accumulated depletion, ending | 17,421 | 14,660 |
Net book value | 16,112 | 15,922 |
Mining assets [member] | ||
IfrsStatementLineItems [Line Items] | ||
Mineral properties, cost, beginning | 24,123 | 23,181 |
Additions | 2,951 | 942 |
Mineral properties, cost, ending | 27,074 | 24,123 |
Mineral properties, accumulated depletion, beginning | 13,752 | 13,275 |
Depletion charge for the year for mineral properties | 1,272 | 477 |
Impairment | 1,489 | |
Mineral properties, accumulated depletion, ending | 16,513 | 13,752 |
Net book value | 10,561 | 10,371 |
Surface Rights Acquired [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Mineral properties, cost, beginning | 6,459 | 6,459 |
Additions | ||
Mineral properties, cost, ending | 6,459 | 6,459 |
Mineral properties, accumulated depletion, beginning | 908 | 908 |
Depletion charge for the year for mineral properties | ||
Impairment | ||
Mineral properties, accumulated depletion, ending | 908 | 908 |
Net book value | $ 5,551 | $ 5,551 |
Mineral properties (Details Nar
Mineral properties (Details Narrative) - USD ($) $ in Thousands | Dec. 15, 2021 | Apr. 15, 2021 | Sep. 30, 2020 | Dec. 31, 2019 | Jul. 31, 2007 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 12, 2021 | Dec. 31, 2018 | Jan. 31, 2016 |
IfrsStatementLineItems [Line Items] | |||||||||||
Investment property | $ 29,640 | $ 33,533 | $ 30,582 | $ 29,640 | |||||||
Impairment charge | 1,489 | ||||||||||
Exploration expenditures | 4,604 | 2,303 | 2,608 | ||||||||
La Josefina Project [Member] | |||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||
Purchase of mining assets | $ 200 | ||||||||||
Ownership interest in joint venture | 81.00% | ||||||||||
Earning interest | 49.00% | ||||||||||
Decription of investments in Joint Ventures | The Company has the right to buy back any increase in Fomicruz’s ownership interest in the JV Corporation at a purchase price of $0.2 million per each percentage interest owned by Fomicruz down to its initial ownership interest of 19%; the Company can also purchase 10% of the Fomicruz’s initial 19% JV Corporation ownership interest by negotiating a purchase price with Fomicruz. Under the agreement, the Company has until the end of 2019 to complete cumulative exploration expenditures of $18 million and determine if it will enter into production on the property. | ||||||||||
Exploration expenditures | $ 18,000 | ||||||||||
Incurred amount | $ 20,000 | ||||||||||
La Josefina Project [Member] | Fomicruz [Member] | |||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||
Ownership interest in joint venture | 19.00% | ||||||||||
Net Smelter Royalty Agreement [Member] | Fomicruz [Member] | |||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||
Investment property | 5,000 | ||||||||||
Mining assets [member] | |||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||
Investment property | $ 23,181 | 27,074 | 24,123 | $ 23,181 | |||||||
Impairment charge | 1,489 | ||||||||||
Mining assets [member] | San Jose Project [Member] | |||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||
Investment property | $ 1,996 | ||||||||||
Percentage of issued and outstanding shares | 42.50% | 42.50% | |||||||||
Impairment charge | $ 1,996 | ||||||||||
Mining assets [member] | Lomada Project [Member] | |||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||
Impairment charge | 989 | ||||||||||
Mina Angela Property [Member] | |||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||
Investment property | $ 500 | ||||||||||
Impairment charge | $ 500 | ||||||||||
Percentage of acquired | 100.00% | 100.00% | |||||||||
Description of investment property | This newly approved law regarding mining zoning would have enabled the Company to advance the development of 101,151 ha of its mining concessions, including Mina Angela. However, on December 20, 2021, the Chubut Governor, sent a bill to the legislature of the Province of Chubut to retract the recent amendments as a result of the violent demonstrations that occurred soon after such law was enacted. | ||||||||||
Mina Angela Property [Member] | Net Smelter Royalty [Member] | |||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||
Receivables from properties percentage | 1.25% | ||||||||||
Purchase of mining assets | $ 1,000 | ||||||||||
Mina Angela Property [Member] | First Earn in Payment [Member] | |||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||
Investment property | 250 | ||||||||||
Mina Angela Property [Member] | Second Earn In Payment [Member] | |||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||
Investment property | $ 250 | $ 250 | |||||||||
PGSA and Abril Project [Member] | Net Smelter Royalty Agreement [Member] | Fomicruz [Member] | |||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||
Royalty percentage | 2.00% | ||||||||||
La Josefina Project and La Valenciana Project [Member] | Net Smelter Royalty Agreement [Member] | Fomicruz [Member] | |||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||
Royalty percentage | 5.00% | ||||||||||
Homenaje Project [Member] | Definitive Agreements [Member] | Vendors [Member] | |||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||
Undivided interest | 75.00% | ||||||||||
Homenaje Project [Member] | Option Agreement [Member] | Vendors [Member] | |||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||
Exploration expenditures | $ 2,550 | ||||||||||
Undivided interest | 75.00% | ||||||||||
Description of interest upon completion of project | Upon Patagonia completing the Earn-In Obligations, Patagonia and the Vendors will hold 75% and 25%, respectively, in a joint venture company holding the Homenaje Project. If either party’s equity interest is diluted below 10%, it will convert to a 2% NSR royalty. | ||||||||||
Homenaje Project [Member] | Option Agreement [Member] | Vendors [Member] | Top of range [member] | First 18 month [Member] | |||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||
Exploration expenditures | $ 400 | ||||||||||
Homenaje Project [Member] | Option Agreement [Member] | Vendors [Member] | Top of range [member] | 12-month period [Member] | |||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||
Exploration expenditures | 400 | ||||||||||
Homenaje Project [Member] | Option Agreement [Member] | Vendors [Member] | Top of range [member] | Six-month period [Member] | |||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||
Exploration expenditures | $ 200 | ||||||||||
Nico Project [Member] | Definitive Agreements [Member] | Vendors [Member] | |||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||
Royalty percentage | 1.50% | ||||||||||
Undivided interest | 100.00% |
Schedule of changes to asset re
Schedule of changes to asset retirement obligation liability (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reclamation And Remediation Obligations | |||
Reclamation and remediation obligation - beginning of year | $ 5,139 | $ 5,803 | |
Change in estimate | 983 | (677) | |
Accretion expense | 66 | 13 | $ 35 |
Reclamation and remediation obligation - end of year | $ 6,188 | $ 5,139 | $ 5,803 |
Reclamation and remediation o_3
Reclamation and remediation obligations (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Reclamation And Remediation Obligations | ||
Undiscounted cash flows required to settle asset retirement obligation | $ 6,366 | $ 5,182 |
Weighted average risk-free rate | 0.80% | 0.19% |
Inflation rate | 7.04% | 1.36% |
Schedule of mining rights (Deta
Schedule of mining rights (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
IfrsStatementLineItems [Line Items] | ||
Mining rights, beginning balance | $ 17,195 | $ 16,997 |
Amortization | (100) | (100) |
Exchange differences | 50 | 298 |
Mining rights, ending balance | 17,145 | 17,195 |
Fomicruz Agreement [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Mining rights, beginning balance | 3,088 | 3,188 |
Amortization | (100) | (100) |
Exchange differences | ||
Mining rights, ending balance | 2,988 | 3,088 |
Minera Aquiline Argentina [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Mining rights, beginning balance | 14,107 | 13,809 |
Amortization | ||
Exchange differences | 50 | 298 |
Mining rights, ending balance | $ 14,157 | $ 14,107 |
Mining rights (Details Narrativ
Mining rights (Details Narrative) - USD ($) $ in Thousands | Oct. 14, 2011 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | May 18, 2018 | Jan. 31, 2018 |
Reserve Quantities [Line Items] | ||||||
Non-controlling interest | $ (1,392) | $ (1,295) | ||||
Mining rights | $ 17,145 | $ 17,195 | $ 16,997 | |||
Calcatreu gold asset [Member] | Patagonia Gold Canada Inc. (PGCAD) [Member] | Minera Aquiline Argentina S.A. (MASA) [Member] | ||||||
Reserve Quantities [Line Items] | ||||||
Equity interest | 100.00% | |||||
Assets acquisition, consideration recognised | $ 15,000 | |||||
Assets acquisition, consideration paid | $ 10,000 | 5,000 | ||||
Mining rights | 14,600 | |||||
Other net assets | $ 400 | |||||
Patagonia Gold S.A. ("PGSA") [Member] | Newly Merged Entity [Member] | ||||||
Reserve Quantities [Line Items] | ||||||
Equity interest | 4.70% | |||||
Fomicruz Agreement [Member] | Patagonia Gold S.A. ("PGSA") [Member] | Mining Properties [Member] | ||||||
Reserve Quantities [Line Items] | ||||||
Equity interest | 10.00% | |||||
Percentage of exploration expenditures funded by the company | 100.00% | |||||
Other exploration obligation | After feasibility stage is reached, Fomicruz is obliged to pay its 10% share of the funding incurred thereafter on the PGSA properties, plus annual interest at LIBOR +1% to the Company. Such debt and interest payments will be guaranteed by an assignment by Fomicruz of 50% of the future dividends otherwise payable to Fomicruz on its shares. The Company will manage the exploration and potential future development of the PGSA properties. | |||||
Fair value of equity interest | $ 4,000 | |||||
Non-controlling interest | $ 4,000 |
Other financial assets (Details
Other financial assets (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2021 | |
IfrsStatementLineItems [Line Items] | ||
Other financial assets | $ 16 | $ 15 |
Financial assets, face value | $ 16 | $ 15 |
Performance Bond [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Interest rate | 2.50% | |
Financial assets, face value | $ 600 | |
Payment to acquire financial assets | 247 | |
Procceds from sale of financial assets | $ 400 |
Schedule of property plant and
Schedule of property plant and equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
IfrsStatementLineItems [Line Items] | ||
Property, plant and equipment, cost, beginning | $ 41,728 | $ 41,181 |
Additions | 1,839 | 976 |
Disposals | (84) | (429) |
Transfers | ||
Property, plant and equipment, cost, ending | 43,483 | 41,728 |
Property, plant and equipment, accumulated depreciation, beginning | 28,495 | 25,546 |
Disposals | (83) | (12) |
Depreciation for the year | 2,596 | 2,961 |
Property, plant and equipment, accumulated depreciation, ending | 31,008 | 28,495 |
Property, plant and equipment, net book value | 12,475 | 13,233 |
Plant [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Property, plant and equipment, cost, beginning | 15,440 | 15,326 |
Additions | 1 | 114 |
Disposals | ||
Transfers | 36 | |
Property, plant and equipment, cost, ending | 15,477 | 15,440 |
Property, plant and equipment, accumulated depreciation, beginning | 13,402 | 13,130 |
Disposals | ||
Depreciation for the year | 281 | 272 |
Property, plant and equipment, accumulated depreciation, ending | 13,683 | 13,402 |
Property, plant and equipment, net book value | 1,794 | 2,038 |
Buildings [member] | ||
IfrsStatementLineItems [Line Items] | ||
Property, plant and equipment, cost, beginning | 1,979 | 1,979 |
Additions | ||
Disposals | ||
Transfers | ||
Property, plant and equipment, cost, ending | 1,979 | 1,979 |
Property, plant and equipment, accumulated depreciation, beginning | 362 | 201 |
Disposals | ||
Depreciation for the year | 161 | 161 |
Property, plant and equipment, accumulated depreciation, ending | 523 | 362 |
Property, plant and equipment, net book value | 1,456 | 1,617 |
Vehicles and Equipment [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Property, plant and equipment, cost, beginning | 23,270 | 23,024 |
Additions | 585 | 260 |
Disposals | (84) | (14) |
Transfers | 20 | |
Property, plant and equipment, cost, ending | 23,791 | 23,270 |
Property, plant and equipment, accumulated depreciation, beginning | 14,731 | 12,215 |
Disposals | (83) | (12) |
Depreciation for the year | 2,154 | 2,528 |
Property, plant and equipment, accumulated depreciation, ending | 16,802 | 14,731 |
Property, plant and equipment, net book value | 6,989 | 8,539 |
Improvements and Advances [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Property, plant and equipment, cost, beginning | 1,039 | 852 |
Additions | 1,253 | 602 |
Disposals | (415) | |
Transfers | (56) | |
Property, plant and equipment, cost, ending | 2,236 | 1,039 |
Property, plant and equipment, accumulated depreciation, beginning | ||
Disposals | ||
Depreciation for the year | ||
Property, plant and equipment, accumulated depreciation, ending | ||
Property, plant and equipment, net book value | $ 2,236 | $ 1,039 |
Schedule of receivables (Detail
Schedule of receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Receivable from sales | $ 112 | $ 156 |
Recoverable value added tax (“VAT”) | 1,849 | 1,217 |
Other receivables | 551 | 668 |
Total | $ 2,512 | $ 2,041 |
Schedule of other receivables (
Schedule of other receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Other Receivables | ||
Recoverable value added tax (“VAT”) | $ 1,019 | $ 722 |
Other receivables | 402 | 2,822 |
Total | $ 1,421 | $ 3,544 |
Other receivables (Details Narr
Other receivables (Details Narrative) - USD ($) $ in Thousands | Oct. 14, 2011 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Reserve Quantities [Line Items] | ||||
Write-down of other receivables | $ 2,323 | |||
Other receivables | 402 | 2,822 | ||
Recoverable Costs [Member] | ||||
Reserve Quantities [Line Items] | ||||
Other receivables | $ 2,185 | |||
Fomicruz Agreement [Member] | Patagonia Gold S.A. ("PGSA") [Member] | Mining Properties [Member] | ||||
Reserve Quantities [Line Items] | ||||
Equity interest | 10.00% | |||
Percentage for corporate reorganization | 4.70% | |||
Percentage of exploration expenditures funded by the company | 100.00% | |||
Other exploration obligations | After feasibility stage is reached, Fomicruz is obliged to pay its 10% share of the funding incurred thereafter on the PGSA properties, plus annual interest at LIBOR +1% to the Company. Such debt and interest payments will be guaranteed by an assignment by Fomicruz of 50% of the future dividends otherwise payable to Fomicruz on its shares. |
Schedule of credit facility (De
Schedule of credit facility (Details) $ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2021ARS ($) | Dec. 31, 2020ARS ($) | ||
IfrsStatementLineItems [Line Items] | |||||
Bank indebtedness | $ 6,706 | $ 9,636 | |||
Credit Facility One [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Bank indebtedness | [1] | 3,915 | 9,636 | ||
Line of credit, borrowing capacity | $ 6,600 | $ 6,600 | |||
Maturity date | December 31, 2022 | December 31, 2022 | |||
Interest rate | 1.50% | 1.50% | 1.50% | 1.50% | |
Credit Facility Two [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Bank indebtedness | $ 1,941 | ||||
Line of credit, borrowing capacity | $ 1,947 | $ 1,947 | $ 200,000 | $ 200,000 | |
Maturity date | April 30, 2022 | April 30, 2022 | |||
Interest rate | 42.00% | 42.00% | 42.00% | 42.00% | |
Credit Facility Three [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Bank indebtedness | $ 850 | ||||
Line of credit, borrowing capacity | $ 1,460 | $ 1,460 | $ 150,000 | $ 150,000 | |
Maturity date | June 30, 2022 | June 30, 2022 | |||
Interest rate | 35.00% | 35.00% | 35.00% | 35.00% | |
[1] | - As at December 31, 2021, the interest rate was 1.65% 2.75% |
Schedule of credit facility (_2
Schedule of credit facility (Details) (Parenthetical) $ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2021ARS ($) | Dec. 31, 2020ARS ($) | |
Credit Facility One [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Line of credit, borrowing capacity | $ 6,600 | $ 6,600 | ||
Maturity date | December 31, 2022 | December 31, 2022 | ||
Interest rate | 1.50% | 1.50% | 1.50% | 1.50% |
Credit Facility One [Member] | Base Interest Rate [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Interest rate | 1.65% | 2.75% | 1.65% | 2.75% |
Credit Facility Two [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Line of credit, borrowing capacity | $ 1,947 | $ 1,947 | $ 200,000 | $ 200,000 |
Maturity date | April 30, 2022 | April 30, 2022 | ||
Interest rate | 42.00% | 42.00% | 42.00% | 42.00% |
Credit Facility Three [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Line of credit, borrowing capacity | $ 1,460 | $ 1,460 | $ 150,000 | $ 150,000 |
Maturity date | June 30, 2022 | June 30, 2022 | ||
Interest rate | 35.00% | 35.00% | 35.00% | 35.00% |
Schedule of accounts payable an
Schedule of accounts payable and accrued liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Trade accounts payable and accrued liabilities | $ 4,207 | $ 2,510 | |
Income tax | 50 | ||
Other accruals1 | [1] | 2,602 | 1,874 |
Accounts payable to related parties (note 20) | 208 | 144 | |
Total | $ 7,067 | $ 4,528 | |
[1] | – As at December 31, 2021, other accruals consists of taxes payable of $ 1,993 1,449 609 425 |
Schedule of accounts payable _2
Schedule of accounts payable and accrued liabilities (Details) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Taxes payable | $ 1,993 | $ 1,449 |
Accrued salaries | $ 609 | $ 425 |
Schedule of loan payable, lease
Schedule of loan payable, lease payable and current portion of long-term debt (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Loan Payable Lease Payable And Current Portion Of Long-term Debt | ||
Current portion of long-term debt (note 20) | $ 508 | $ 340 |
Leases payable | 9 | 23 |
Total | $ 517 | $ 363 |
Schedule of long-term debt (Det
Schedule of long-term debt (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | ||
Accrued interest on debt | $ 1,546 | $ 848 |
Subtotal | 16,270 | 15,257 |
Less current portion | (508) | (340) |
Long-term debt | 15,762 | 14,917 |
Longterm Debt One [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Debt | 13,961 | 13,961 |
Longterm Debt Two [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Debt | 207 | 448 |
Longterm Debt Three [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Debt | $ 556 |
Schedule of long-term debt (D_2
Schedule of long-term debt (Details) (Parenthetical) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Longterm Debt One [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Interest rate | 5.00% | 5.00% |
Maturity date | December 31, 2023 | December 31, 2023 |
Longterm Debt Two [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Interest rate | 5.75% | 5.75% |
Maturity date | 2022 | 2022 |
Longterm Debt Three [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Interest rate | 9.00% | 9.00% |
Maturity date | 2023 | 2023 |
Schedule of principal payments
Schedule of principal payments on long-term debt (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Long-term Debt | |
2022 | $ 508 |
2023 | $ 15,762 |
Schedule of net loss per share
Schedule of net loss per share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Profit or loss [abstract] | |||
Net loss ($’000) | $ (11,266) | $ (4,381) | $ (12,354) |
Weighted average number of common shares outstanding – basic and diluted | 446,366,938 | 325,483,780 | 282,306,312 |
Net loss per share – basic and diluted | $ (0.025) | $ (0.013) | $ (0.044) |
Summary of common outstanding (
Summary of common outstanding (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Common shares outstanding, shares, beginning | 363,030,378 | 317,943,990 |
Common shares outstanding, amount, beginning | $ 7,320 | $ 2,588 |
Shares issued to settle debts, shares | 45,241,388 | |
Shares issued to settle debts, shares, amount | $ 4,749 | |
Shares repurchased, shares | (550,000) | (155,000) |
Shares repurchased, amount | $ (20) | $ (17) |
Shares issued in private placement, shares | 104,086,063 | |
Shares issued in private placement, amount | $ 4,270 | |
Share issuance costs, shares | ||
Share issuance costs, amount | $ (326) | |
Common shares outstanding, shares, ending | 466,566,441 | 363,030,378 |
Common shares outstanding, amount, ending | $ 11,244 | $ 7,320 |
Summary of stock option activit
Summary of stock option activity (Details) | 12 Months Ended | |
Dec. 31, 2021shares$ / shares | Dec. 31, 2020shares$ / shares | |
IfrsStatementLineItems [Line Items] | ||
Balance, end of year | 17,250,000 | |
Stock Options [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Balance, beginning of year | 17,250,000 | 7,650,000 |
Weighted average exercise price, beginning | $ / shares | $ 0.118 | $ 0.065 |
Granted | 9,600,000 | |
Weighted average exercise price, granted | $ / shares | $ 0.160 | |
Balance, end of year | 17,250,000 | 17,250,000 |
Weighted average exercise price, ending | $ / shares | $ 0.118 | $ 0.118 |
Summary of stock options outsta
Summary of stock options outstanding (Details) | 12 Months Ended |
Dec. 31, 2021shares$ / shares | |
IfrsStatementLineItems [Line Items] | |
Options vested | 10,850,000 |
Options, unvested | 6,400,000 |
Options, outstanding | 17,250,000 |
Remaining contractual life (years) | 3 years 2 months 23 days |
Stock Option One [Member] | |
IfrsStatementLineItems [Line Items] | |
Exercise price | $ / shares | $ 0.065 |
Options vested | 7,650,000 |
Options, unvested | |
Options, outstanding | 7,650,000 |
Remaining contractual life (years) | 2 years 8 months 26 days |
Expiry date | September 25, 2024 |
Stock Option Two [Member] | |
IfrsStatementLineItems [Line Items] | |
Exercise price | $ / shares | $ 0.160 |
Options vested | 3,200,000 |
Options, unvested | 6,400,000 |
Options, outstanding | 9,600,000 |
Remaining contractual life (years) | 3 years 7 months 13 days |
Expiry date | August 13, 2025 |
Summary of stock option measure
Summary of stock option measurement assumptions (Details) - Stock Options [Member] | Aug. 14, 2020$ / shares |
IfrsStatementLineItems [Line Items] | |
Discount rate | 0.35% |
Expected volatility | 172.95% |
Expected life (years) | 5 years |
Expected dividend yield | 0.00% |
Expected forfeiture rate | 0.00% |
Stock price | $ 0.15 |
Summary of agent compensation o
Summary of agent compensation options (Details) | 12 Months Ended |
Dec. 31, 2021shares$ / shares | |
IfrsStatementLineItems [Line Items] | |
Balance, end of year | 17,250,000 |
Agent Compensation Options [Member] | |
IfrsStatementLineItems [Line Items] | |
Balance, beginning of year | |
Weighted average exercise price, beginning | $ / shares | |
Issued | 2,509,586 |
Weighted average price, Issued | $ / shares | $ 0.09 |
Balance, end of year | 2,509,586 |
Weighted average exercise price, ending | $ / shares | $ 0.09 |
Summary of agent compensation_2
Summary of agent compensation options measurement assumptions (Details) - Agent Compensation Options [Member] | Mar. 10, 2021$ / shares |
IfrsStatementLineItems [Line Items] | |
Discount rate | 0.25% |
Expected volatility | 140.69% |
Expected life (years) | 3 years |
Expected dividend yield | 0.00% |
Stock price | $ 0.09 |
Summary of agent compensation_3
Summary of agent compensation outstanding options (Details) | 12 Months Ended | |
Dec. 31, 2021shares$ / shares | Dec. 31, 2020shares$ / shares | |
IfrsStatementLineItems [Line Items] | ||
Options, outstanding | 17,250,000 | |
Remaining contractual life (years) | 3 years 2 months 23 days | |
Agent Compensation Options [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Exercise price | $ / shares | $ 0.09 | |
Options, outstanding | 2,509,586 | |
Remaining contractual life (years) | 2 years 2 months 8 days | |
Expiry date | March 10, 2024 |
Summary of stock warrants activ
Summary of stock warrants activity (Details) | 12 Months Ended | |
Dec. 31, 2021shares$ / shares | Dec. 31, 2021shares$ / shares | |
IfrsStatementLineItems [Line Items] | ||
Balance, end of year | 17,250,000 | 17,250,000 |
Warrants [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Balance, beginning of year | ||
Weighted average exercise price, beginning | $ / shares | ||
Number of warrants, Issued | 104,086,063 | 104,086,063 |
Weighted average price, Issued | $ / shares | $ 0.13 | |
Balance, end of year | 104,086,063 | 104,086,063 |
Weighted average exercise price, ending | (per share) | $ 0.13 | $ 0.13 |
Summary of warrants fair value
Summary of warrants fair value measurements (Details) - Warrants [Member] | Mar. 10, 2021$ / shares |
IfrsStatementLineItems [Line Items] | |
Discount rate | 0.25% |
Expected volatility | 140.69% |
Expected life (years) | 3 years |
Expected dividend yield | 0.00% |
Stock price | $ 0.09 |
Summary of warrants outstanding
Summary of warrants outstanding (Details) | 12 Months Ended | ||
Dec. 31, 2021shares$ / shares | Dec. 31, 2021shares$ / shares | Dec. 31, 2020shares$ / shares | |
IfrsStatementLineItems [Line Items] | |||
Options, outstanding | 17,250,000 | 17,250,000 | |
Remaining contractual life (years) | 3 years 2 months 23 days | ||
Warrants [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Exercise price | (per share) | $ 0.13 | $ 0.13 | |
Options, outstanding | 104,086,063 | 104,086,063 | |
Remaining contractual life (years) | 2 years 2 months 8 days | ||
Expiry date | March 10, 2024 |
Capital stock (Details Narrativ
Capital stock (Details Narrative) $ / shares in Units, $ / shares in Units, $ in Thousands | Oct. 26, 2021shares | Mar. 10, 2021USD ($)shares | Mar. 10, 2021CAD ($)shares$ / shares | Nov. 24, 2020USD ($)$ / sharesshares | Oct. 30, 2020USD ($)$ / sharesshares | Aug. 14, 2020USD ($)shares | Feb. 19, 2020shares | Jun. 30, 2021 | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($)shares | Dec. 31, 2021$ / shares | Nov. 24, 2020$ / shares | Oct. 30, 2020$ / shares | Aug. 14, 2020$ / shares | Feb. 17, 2020shares | Jul. 24, 2019shares |
IfrsStatementLineItems [Line Items] | |||||||||||||||||
Number of shares issued | shares | 254,355,192 | ||||||||||||||||
Adjustments for share-based payments | $ 362,000 | $ 382,000 | $ 127,000 | ||||||||||||||
Number of shares outstanding | shares | 466,566,441 | 363,030,378 | 317,943,990 | ||||||||||||||
Long-term debt with related parties | $ 4,233,000 | ||||||||||||||||
Accounts payable with related parties | 5,914,000 | ||||||||||||||||
Net debt | 10,147,000 | ||||||||||||||||
Fair value of ordinay shares | $ 4,630,000 | ||||||||||||||||
Fair value of ordinay shares per share | (per share) | $ 0.105 | $ 0.14 | |||||||||||||||
Gain on settlement of debt | $ 5,517,000 | ||||||||||||||||
Weighted average remaining contractual life of outstanding share options | 3 years 2 months 23 days | ||||||||||||||||
Expense from share-based payment transactions with employees | $ 362,000 | $ 382,000 | $ 127,000 | ||||||||||||||
Stock Options [Member] | |||||||||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||||||||
Description of stock option | Under the Company’s share option plan, and in accordance with TSX Venture Exchange requirements, the number of common shares reserved for issuance under the option plan shall not exceed 10% of the issued and outstanding common shares of the Company, have a maximum term of 5 years and vest at the discretion of the Board of Directors. In connection with the foregoing, the number of common shares reserved for issuance to: (a) any individual director or officer will not exceed 5% of the issued and outstanding common shares; and (b) all consultants will not exceed 2% of the issued and outstanding common shares. | ||||||||||||||||
Weighted average remaining contractual life of outstanding share options | 5 years | ||||||||||||||||
Directors, Officers and Employees [Member] | |||||||||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||||||||
Number of share options granted in share-based payment arrangement | shares | 9,600,000 | ||||||||||||||||
Exercise price | $ / shares | $ 0.16 | ||||||||||||||||
Number of share options maturity date | Aug. 14, 2025 | ||||||||||||||||
Fair value of options | $ 1,440,000 | ||||||||||||||||
Private Placement [Member] | |||||||||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||||||||
Number of shares issued | shares | 104,086,063 | ||||||||||||||||
Private Placements [Member] | |||||||||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||||||||
Proceeds from exercise of options | $ 7,408,000 | ||||||||||||||||
Price of unit issued | $ / shares | $ 0.09 | ||||||||||||||||
Warrants exercise price | $ / shares | $ 0.13 | ||||||||||||||||
Cash commissions and expenses | 326,000 | ||||||||||||||||
Stock issued during period shares new issue | shares | 57,777,777 | ||||||||||||||||
Gross proceeds from private placement | $ 4,112,000 | ||||||||||||||||
Preferred Shares [Member] | |||||||||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||||||||
Price per shares | $ / shares | $ 0.30 | ||||||||||||||||
Private Placement [Member] | |||||||||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||||||||
Proceeds from exercise of options | 7,408,000 | $ 9,368 | |||||||||||||||
Common Stock [Member] | Private Placements [Member] | |||||||||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||||||||
Proceeds from exercise of options | 4,270,000 | ||||||||||||||||
Cash commissions and expenses | 188,000 | ||||||||||||||||
Warrants [Member] | |||||||||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||||||||
Weighted average remaining contractual life of outstanding share options | 2 years 2 months 8 days | ||||||||||||||||
Warrants [Member] | Private Placements [Member] | |||||||||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||||||||
Proceeds from exercise of options | 3,138,000 | ||||||||||||||||
Price of unit issued | $ / shares | $ 0.09 | ||||||||||||||||
Warrants exercise price | $ / shares | $ 0.13 | ||||||||||||||||
Cash commissions and expenses | $ 138,000 | ||||||||||||||||
Stock issued during period shares new issue | shares | 2,509,586 | 2,509,586 | |||||||||||||||
Adjustments for share-based payments | $ 138,000 | ||||||||||||||||
Ordinary shares [member] | |||||||||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||||||||
Number of shares issued | shares | 467,116,441 | 317,943,990 | |||||||||||||||
Stock issued during period shares new issue | shares | 10,000,000 | 15,897,199 | |||||||||||||||
Percentage for issued and outstanding shares | 0.02 | 0.05 | |||||||||||||||
Number of shares outstanding | shares | 467,116,441 | 317,943,990 | |||||||||||||||
Stock repurchased shares | shares | 550,000 | 155,000 | |||||||||||||||
Stock repurchased amount | $ 20,000 | $ 17,000 | |||||||||||||||
Ordinary shares [member] | Directors [Member] | |||||||||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||||||||
Price per shares | (per share) | $ 0.10 | $ 0.227 | $ 0.14 | $ 0.30 | |||||||||||||
Number of shares issued | shares | 1,201,111 | ||||||||||||||||
Stock issued during period shares new issue | shares | 44,040,277 | ||||||||||||||||
[custom:DebtSettlement] | $ 10,000,000 | ||||||||||||||||
Long-term debt with related parties | 4,822,000 | ||||||||||||||||
Accounts payable with related parties | 5,178,000 | ||||||||||||||||
Conversion of convertible instruments | 1,458,000 | ||||||||||||||||
Settlement of conversion of convertible instruments | $ 720,000 | ||||||||||||||||
Fair value of ordinay shares | $ 119,000 | ||||||||||||||||
Gain on settlement of debt | 9,000 | ||||||||||||||||
Related party fees | $ 128 | ||||||||||||||||
Agent Compensation Options [Member] | |||||||||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||||||||
Weighted average remaining contractual life of outstanding share options | 2 years 2 months 8 days | ||||||||||||||||
Number of share options granted in share-based payment arrangement | shares | 2,509,586 | 2,509,586 | |||||||||||||||
Exercise price | $ / shares | $ 0.09 | ||||||||||||||||
Number of share options maturity date | Mar. 10, 2024 | Mar. 10, 2024 | |||||||||||||||
Fair value of options | 138,000 | ||||||||||||||||
Warrant exercise price | $ / shares | $ 0.13 | ||||||||||||||||
Private Placements [Member] | |||||||||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||||||||
Number of share options granted in share-based payment arrangement | shares | 104,086,063 | 104,086,063 | |||||||||||||||
Exercise price | $ / shares | $ 0.13 | ||||||||||||||||
Number of share options maturity date | Mar. 10, 2024 | Mar. 10, 2024 | |||||||||||||||
Fair value of options | $ 5,441,000 |
Summary of related party transa
Summary of related party transactions and balances (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Director - Admin, Office, and Interest Expenses [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Remuneration, fees or interest expense | $ 262 | ||
Loans or Advances | |||
Remuneration, fees, or interest payments | |||
Loan payments | 6,636 | ||
Included in Accounts Payable | |||
Included in Loan Payable and Long-term debt (note 17) | |||
Director - Admin, Office, and Interest Expenses One [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Remuneration, fees or interest expense | 762 | 703 | 346 |
Loans or Advances | 6,053 | 7,908 | |
Remuneration, fees, or interest payments | 23 | 212 | 33 |
Loan payments | |||
Included in Accounts Payable | 166 | 126 | |
Included in Loan Payable and Long-term debt (note 17) | 15,507 | 14,808 | |
Directors - Salaries and Wages [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Remuneration, fees or interest expense | 447 | 446 | 337 |
Loans or Advances | |||
Remuneration, fees, or interest payments | 423 | 544 | 317 |
Loan payments | |||
Included in Accounts Payable | 42 | 18 | |
Included in Loan Payable and Long-term debt (note 17) | |||
Director - Loans [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Remuneration, fees or interest expense | |||
Loans or Advances | 532 | 347 | |
Remuneration, fees, or interest payments | 962 | ||
Loan payments | 3,270 | ||
Included in Accounts Payable | |||
Included in Loan Payable and Long-term debt (note 17) |
Summary of remuneration of dire
Summary of remuneration of directors and officers (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
IfrsStatementLineItems [Line Items] | |||
Remuneration management compensation | $ 935 | $ 1,121 | $ 456 |
Salaries and Benefits [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Remuneration management compensation | 635 | 820 | 375 |
Director's Fees [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Remuneration management compensation | 72 | 71 | 30 |
Sharebased Compensation [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Remuneration management compensation | $ 228 | $ 230 | $ 51 |
Related party transactions (Det
Related party transactions (Details Narrative) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Related Party Transactions | ||
Accounts payable with related parties | $ 208 | $ 144 |
Summary of administrative expen
Summary of administrative expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
General and administrative | $ 2,677 | $ 2,353 | $ 4,175 |
Argentina statutory taxes | 996 | 654 | 641 |
Professional fees | 746 | 986 | 1,566 |
Operating leases | 59 | 132 | 130 |
Directors’ remuneration | 221 | 244 | 259 |
Loss (gain) on sale of property, plant and equipment | (336) | 194 | (76) |
Depreciation of property, plant and equipment | 2,596 | 2,961 | 3,028 |
Depreciation allocated to inventory | (2,158) | (2,605) | (2,501) |
Depletion of mineral properties | 1,272 | 477 | 3,456 |
Amortization of mining rights | 100 | 100 | 100 |
Consulting fees | 51 | 115 | 18 |
Transaction taxes expense | 203 | 248 | |
Total | $ 6,427 | $ 5,611 | $ 11,044 |
Summary of fair values of finan
Summary of fair values of financial instruments in levels of assets and liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Financial assets amortized cost of cash, carrying amount | $ 291 | $ 819 | |
Financial assets amortized cost of cash, fair value | 291 | 819 | |
Financial assets amortized cost of receivables and other receivable, carrying amount | [1] | 1,065 | 3,646 |
Financial assets amortized cost of receivables and other receivable, fair value | [1] | 1,065 | 3,646 |
Financial assets fair value through other comprehensive income, other financial assets carrying amount | 15 | 16 | |
Financial assets fair value through other comprehensive income, other financial assets fair value | 15 | 16 | |
Financial liabilities amortized cost bank indebtedness, carrying amount | 6,706 | 9,636 | |
Financial liabilities amortized cost bank indebtedness, fair value | 6,706 | 9,636 | |
Financial liabilities amortized cost accounts payable and accrued liabilities, carrying amount | 7,067 | 4,528 | |
Financial liabilities amortized cost accounts payable and accrued liabilities, fair value | 7,067 | 4,528 | |
Financial liabilities amortized cost loan payable and current portion of long-term debt, carrying amount | 517 | 363 | |
Financial liabilities amortized cost loan payable and current portion of long-term debt, fair value | 517 | 363 | |
Financial liabilities amortized cost long-term debt, carrying amount | 15,762 | 14,917 | |
Financial liabilities amortized cost long-term debt, fair value | $ 15,762 | $ 14,917 | |
[1] | Amounts exclude value added tax (“VAT”) recoverable of $2,868 and $1,939 as December 31, 2021 and 2020. |
Summary of fair values of fin_2
Summary of fair values of financial instruments in levels of assets and liabilities (Details) (Parenthethical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Value added tax | $ 2,868 | $ 1,939 |
Summary of financial assets and
Summary of financial assets and liabilities denominated for foreign currencies (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Canada, Dollars | |
IfrsStatementLineItems [Line Items] | |
Cash | $ 107 |
Other working capital (deficit) items - net | (140) |
Non-current financial assets | |
Non-current financial liabilities | |
Argentina, Pesos | |
IfrsStatementLineItems [Line Items] | |
Cash | 130 |
Other working capital (deficit) items - net | (5,218) |
Non-current financial assets | 401 |
Non-current financial liabilities | |
United States of America, Dollars | |
IfrsStatementLineItems [Line Items] | |
Cash | 54 |
Other working capital (deficit) items - net | (8,080) |
Non-current financial assets | |
Non-current financial liabilities | (15,762) |
Euro Member Countries, Euro | |
IfrsStatementLineItems [Line Items] | |
Cash | |
Other working capital (deficit) items - net | (207) |
Non-current financial assets | |
Non-current financial liabilities | |
United Kingdom, Pounds | |
IfrsStatementLineItems [Line Items] | |
Cash | |
Other working capital (deficit) items - net | 19 |
Non-current financial assets | 15 |
Non-current financial liabilities |
Schedule of company obligations
Schedule of company obligations by contractual maturity (Details) $ in Thousands | Dec. 31, 2021USD ($) |
IfrsStatementLineItems [Line Items] | |
Total | $ 36,248 |
Less than 1 year | 14,290 |
1-3 years | 20,912 |
3-5 years | |
More than 5 years | 1,046 |
Bank Indebtedness [Member] | |
IfrsStatementLineItems [Line Items] | |
Total | 6,706 |
Less than 1 year | 6,706 |
1-3 years | |
3-5 years | |
More than 5 years | |
Accounts Payable and Accrued Liabilities [Member] | |
IfrsStatementLineItems [Line Items] | |
Total | 6,859 |
Less than 1 year | 6,859 |
1-3 years | |
3-5 years | |
More than 5 years | |
Accounts Payable with Related Parties [Member] | |
IfrsStatementLineItems [Line Items] | |
Total | 208 |
Less than 1 year | 208 |
1-3 years | |
3-5 years | |
More than 5 years | |
Loan Payable and Current Portion of Long-term Debt [Member] | |
IfrsStatementLineItems [Line Items] | |
Total | 517 |
Less than 1 year | 517 |
1-3 years | |
3-5 years | |
More than 5 years | |
Long-term Debt [Member] | |
IfrsStatementLineItems [Line Items] | |
Total | 255 |
Less than 1 year | |
1-3 years | 255 |
3-5 years | |
More than 5 years | |
Long-term Debt with Related Parties [Member] | |
IfrsStatementLineItems [Line Items] | |
Total | 15,507 |
Less than 1 year | |
1-3 years | 15,507 |
3-5 years | |
More than 5 years | |
Reclamation and Remediation Obligations [Member] | |
IfrsStatementLineItems [Line Items] | |
Total | 6,188 |
Less than 1 year | |
1-3 years | 5,142 |
3-5 years | |
More than 5 years | 1,046 |
Other Long Term Payables [Member] | |
IfrsStatementLineItems [Line Items] | |
Total | 8 |
Less than 1 year | |
1-3 years | 8 |
3-5 years | |
More than 5 years |
Financial instruments (Details
Financial instruments (Details Narrative) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Cash | $ 291 | $ 819 |
Federally insured limits exceed | ||
Current assets | 6,562 | 6,149 |
Current liabilities | $ 14,290 | $ 14,527 |
Other income (Details Narrative
Other income (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Gain on other income | $ 1,380 | $ 2,155 |
Schedule of segment reporting i
Schedule of segment reporting information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
IfrsStatementLineItems [Line Items] | |||
Revenue | $ 18,104 | $ 19,849 | $ 21,938 |
Cost of sales | (13,559) | (13,247) | (17,138) |
Gross profit (loss) | 4,545 | 6,602 | 4,800 |
Operating expense | |||
Exploration expense | (4,604) | (2,303) | (2,608) |
Repair and maintenance | (658) | ||
Administrative expenses | (5,889) | (5,155) | (10,578) |
Depreciation expense | (538) | (456) | (466) |
Impairment of mineral properties | (1,489) | (1,996) | |
Share-based payments | (362) | (382) | (127) |
Interest expense | (1,436) | (2,100) | (2,131) |
Total operating expense | (14,976) | (10,396) | (17,906) |
Other income/(expense) | |||
Interest income | 221 | 125 | 191 |
Gain/(loss) on foreign exchange | (224) | (785) | 481 |
Accretion expense | (66) | (13) | (35) |
Write-down of other receivables | (2,323) | ||
Other expenses | 1,380 | 2,155 | |
Total other income/(expense) | (1,012) | 1,482 | 637 |
Income/(loss) – before income tax | (11,443) | (2,312) | (12,469) |
Income tax/(benefit) | 177 | (2,069) | 115 |
Net income/(loss) | (11,266) | (4,381) | (12,354) |
Assets | 57,739 | 60,068 | |
Liabilities | 40,043 | 38,663 | |
Lomada Project [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Revenue | 4,177 | 6,482 | 4,750 |
Cost of sales | (6,422) | (4,391) | (3,765) |
Gross profit (loss) | (2,245) | 2,091 | 985 |
Operating expense | |||
Exploration expense | |||
Repair and maintenance | |||
Administrative expenses | (808) | (2,860) | |
Depreciation expense | |||
Impairment of mineral properties | (989) | ||
Share-based payments | |||
Interest expense | |||
Total operating expense | (1,797) | (2,860) | |
Other income/(expense) | |||
Interest income | |||
Gain/(loss) on foreign exchange | |||
Accretion expense | (32) | (6) | (7) |
Write-down of other receivables | |||
Other expenses | |||
Total other income/(expense) | (32) | (6) | (7) |
Income/(loss) – before income tax | (4,074) | 2,085 | (1,882) |
Income tax/(benefit) | |||
Net income/(loss) | (4,074) | 2,085 | (1,882) |
Cap-Oeste Project [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Revenue | 13,927 | 12,417 | 14,903 |
Cost of sales | (7,137) | (6,589) | (11,828) |
Gross profit (loss) | 6,790 | 5,828 | 3,075 |
Operating expense | |||
Exploration expense | |||
Repair and maintenance | |||
Administrative expenses | (464) | (495) | (596) |
Depreciation expense | |||
Impairment of mineral properties | |||
Share-based payments | |||
Interest expense | |||
Total operating expense | (464) | (495) | (596) |
Other income/(expense) | |||
Interest income | |||
Gain/(loss) on foreign exchange | |||
Accretion expense | (11) | (3) | (12) |
Write-down of other receivables | |||
Other expenses | |||
Total other income/(expense) | (11) | (3) | (12) |
Income/(loss) – before income tax | 6,315 | 5,330 | 2,467 |
Income tax/(benefit) | |||
Net income/(loss) | 6,315 | 5,330 | 2,467 |
Calcatreu Project [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Revenue | |||
Cost of sales | |||
Gross profit (loss) | |||
Operating expense | |||
Exploration expense | (1,576) | (884) | (1,300) |
Repair and maintenance | |||
Administrative expenses | (359) | (217) | (279) |
Depreciation expense | (22) | (18) | (17) |
Impairment of mineral properties | |||
Share-based payments | |||
Interest expense | (12) | (1) | |
Total operating expense | (1,969) | (1,120) | (1,596) |
Other income/(expense) | |||
Interest income | 1 | 1 | 34 |
Gain/(loss) on foreign exchange | (106) | 713 | (10) |
Accretion expense | |||
Write-down of other receivables | |||
Other expenses | 1,380 | (297) | |
Total other income/(expense) | 1,275 | 417 | 24 |
Income/(loss) – before income tax | (694) | (703) | (1,572) |
Income tax/(benefit) | (172) | 138 | (869) |
Net income/(loss) | (866) | (565) | (2,441) |
Martha and La Josefina Projects [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Revenue | 950 | 2,285 | |
Cost of sales | (2,267) | (1,545) | |
Gross profit (loss) | (1,317) | 740 | |
Operating expense | |||
Exploration expense | (91) | (83) | (321) |
Repair and maintenance | (658) | ||
Administrative expenses | (871) | ||
Depreciation expense | (115) | ||
Impairment of mineral properties | |||
Share-based payments | |||
Interest expense | |||
Total operating expense | (749) | (83) | (1,307) |
Other income/(expense) | |||
Interest income | |||
Gain/(loss) on foreign exchange | 1,714 | ||
Accretion expense | (23) | (4) | (16) |
Write-down of other receivables | |||
Other expenses | |||
Total other income/(expense) | (23) | (4) | 1,698 |
Income/(loss) – before income tax | (772) | (1,404) | 1,131 |
Income tax/(benefit) | (387) | (2,030) | |
Net income/(loss) | (1,159) | (1,404) | (899) |
Argentina Uruguay and Chile [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Revenue | |||
Cost of sales | |||
Gross profit (loss) | |||
Operating expense | |||
Exploration expense | (2,937) | (1,336) | (987) |
Repair and maintenance | |||
Administrative expenses | (3,143) | (2,946) | (4,232) |
Depreciation expense | (416) | (338) | (234) |
Impairment of mineral properties | (500) | ||
Share-based payments | |||
Interest expense | (652) | (318) | (765) |
Total operating expense | (7,648) | (4,938) | (6,218) |
Other income/(expense) | |||
Interest income | 220 | 124 | 157 |
Gain/(loss) on foreign exchange | (255) | (1,159) | (1,082) |
Accretion expense | |||
Write-down of other receivables | (2,323) | ||
Other expenses | 2,452 | ||
Total other income/(expense) | (2,358) | 1,417 | (925) |
Income/(loss) – before income tax | (10,006) | (3,521) | (7,143) |
Income tax/(benefit) | 736 | (2,207) | 3,014 |
Net income/(loss) | (9,270) | (5,728) | (4,129) |
Uk [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Revenue | |||
Cost of sales | |||
Gross profit (loss) | |||
Operating expense | |||
Exploration expense | |||
Repair and maintenance | |||
Administrative expenses | (185) | (212) | (1,433) |
Depreciation expense | (100) | (100) | (100) |
Impairment of mineral properties | (1,996) | ||
Share-based payments | (40) | ||
Interest expense | (461) | (610) | (782) |
Total operating expense | (746) | (922) | (4,351) |
Other income/(expense) | |||
Interest income | |||
Gain/(loss) on foreign exchange | 114 | (369) | (467) |
Accretion expense | |||
Write-down of other receivables | |||
Other expenses | |||
Total other income/(expense) | 114 | (369) | (467) |
Income/(loss) – before income tax | (632) | (1,291) | (4,818) |
Income tax/(benefit) | |||
Net income/(loss) | (632) | (1,291) | (4,818) |
North America [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Revenue | |||
Cost of sales | |||
Gross profit (loss) | |||
Operating expense | |||
Exploration expense | |||
Repair and maintenance | |||
Administrative expenses | (930) | (1,285) | (307) |
Depreciation expense | |||
Impairment of mineral properties | |||
Share-based payments | (362) | (382) | (87) |
Interest expense | (311) | (1,171) | (584) |
Total operating expense | (1,603) | (2,838) | (978) |
Other income/(expense) | |||
Interest income | |||
Gain/(loss) on foreign exchange | 23 | 30 | 326 |
Accretion expense | |||
Write-down of other receivables | |||
Other expenses | |||
Total other income/(expense) | 23 | 30 | 326 |
Income/(loss) – before income tax | (1,580) | (2,808) | (652) |
Income tax/(benefit) | |||
Net income/(loss) | (1,580) | (2,808) | $ (652) |
Assets | 4,098 | 4,145 | |
Liabilities | 7,743 | 9,154 | |
Argentina - Cap Oeste [Member] | |||
Other income/(expense) | |||
Assets | 12,263 | 14,585 | |
Liabilities | 2,080 | 1,880 | |
Argentina - Lomada [Member] | |||
Other income/(expense) | |||
Assets | 7,038 | 4,616 | |
Liabilities | 4,899 | 3,808 | |
Argentina - Calcatreu [Member] | |||
Other income/(expense) | |||
Assets | 15,977 | 15,343 | |
Liabilities | 1,019 | 490 | |
Argentina - Martha & La Josefina [Member] | |||
Other income/(expense) | |||
Assets | 12,086 | 12,704 | |
Liabilities | 4,994 | 2,298 | |
Argentina and Chile [Member] | |||
Other income/(expense) | |||
Assets | 6,139 | 8,553 | |
Liabilities | 7,439 | 5,355 | |
United Kingdom [Member] | |||
Other income/(expense) | |||
Assets | 138 | 122 | |
Liabilities | $ 11,869 | $ 15,678 |
Schedule of activities of compa
Schedule of activities of company’s capital (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Bank indebtedness | $ 6,706 | $ 9,636 |
Loan payable and current portion of long-term debt | 517 | 363 |
Long-term debt | 255 | 109 |
Long-term debt with related parties | 15,507 | 14,808 |
Shareholders’ equity attributable to the parent | 19,088 | 22,700 |
Total | $ 42,073 | $ 47,616 |
Schedule of component of income
Schedule of component of income tax expense (benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current period | $ 51 | $ 47 | |
Current period | 160 | 2,096 | (350) |
Prior period tax adjustments | (388) | (27) | 188 |
Total income tax expense (benefit) | $ (177) | $ 2,069 | $ (115) |
Schedule of reconciliation of i
Schedule of reconciliation of income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Loss before tax | $ (11,443) | $ (2,312) | $ (12,469) |
Statutory income tax rate | 25.00% | 25.00% | 25.00% |
Expected income tax (benefit) | $ (2,861) | $ (578) | $ (3,117) |
Increase (decrease) resulting from: | |||
Non-taxable items | 6,415 | 2,005 | 118 |
Change in unrecognized deferred tax assets | (1,234) | 534 | 1,335 |
Tax rate changes, tax rate differences | (2,109) | 135 | 1,361 |
Prior period tax adjustments | (388) | (27) | 188 |
Total income tax expense (benefit) | $ (177) | $ 2,069 | $ (115) |
Schedule of components of defer
Schedule of components of deferred tax assets and liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
IfrsStatementLineItems [Line Items] | |||
Deferred tax assets | $ 4,478 | $ 4,560 | |
Deferred tax liabilities | (8,273) | (8,583) | |
Set-off of deferred tax assets | 4,478 | 4,560 | |
Net deferred tax liability | (3,795) | (4,023) | $ (1,954) |
Property, plant and equipment [member] | |||
IfrsStatementLineItems [Line Items] | |||
Deferred tax assets | 615 | 869 | |
Deferred tax liabilities | (5,678) | (5,552) | |
Mineral Properties [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Deferred tax assets | 374 | ||
Deferred tax liabilities | (2,374) | (1,741) | |
Loss Carryforwards [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Deferred tax assets | 1,000 | 793 | |
Other [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Deferred tax assets | 2,489 | 2,898 | |
Deferred tax liabilities | (221) | (968) | |
Long Term Debts [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Deferred tax liabilities | $ (322) |
Schedule of movement of deferre
Schedule of movement of deferred tax assets and liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
IfrsStatementLineItems [Line Items] | |||
Property, plant and equipment | $ 615 | $ 869 | $ 786 |
Mineral properties | 374 | ||
Loss carryforwards | 1,000 | 793 | 2,385 |
Other | 2,489 | 2,898 | 1,428 |
Property, plant and equipment | (5,678) | (5,552) | (4,263) |
Mineral properties | (2,374) | (1,741) | (1,741) |
Long-term debt | (322) | (322) | |
Other | (221) | (968) | (227) |
Deferred tax assets and liabilities | (3,795) | (4,023) | $ (1,954) |
Recognized in Net Income Loss [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Property, plant and equipment | (254) | 83 | |
Mineral properties | 374 | ||
Loss carryforwards | 207 | (1,592) | |
Other | (409) | 1,470 | |
Property, plant and equipment | (126) | (1,289) | |
Mineral properties | (633) | ||
Long-term debt | 322 | ||
Other | 747 | (741) | |
Deferred tax assets and liabilities | $ 228 | $ (2,069) |
Schedule of loss carryforwards
Schedule of loss carryforwards (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Deductible temporary differences | $ 119,456 | $ 103,894 |
Tax losses | 27,663 | 24,204 |
Loss carryforwards | $ 147,119 | $ 128,098 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
IfrsStatementLineItems [Line Items] | |||
Corporate income tax rate | 25.00% | 25.00% | 25.00% |
Income tax expenses from re-measurement of deferred tax assets and liabilities | $ 965 | ||
Loss carryforwards limitation on use | These loss carryforwards expire between 2024 and 2041. | ||
Argentinian Subsidiaries [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Corporate income tax rate | 35.00% | ||
Bottom of range [member] | |||
IfrsStatementLineItems [Line Items] | |||
Corporate income tax rate | 25.00% | ||
Top of range [member] | |||
IfrsStatementLineItems [Line Items] | |||
Corporate income tax rate | 35.00% |