Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Nov. 17, 2020 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Entity Registrant Name | Patagonia Gold Corp. | ||
Entity Central Index Key | 0001551206 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2019 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Well Known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | true | ||
Is Entity's Reporting Status Current? | No | ||
Entity Shell Company | false | ||
Entity Interactive Data Current | Yes | ||
Entity Incorporation State Country Code | A1 | ||
Entity File Number | 333-182072 | ||
Entity Common Stock, Shares Outstanding | 361,829,267 | ||
Entity Public Float | $ 13,275,516 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2019 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Nov. 17, 2020 | Dec. 31, 2018 |
Current Assets | ||
Cash | $ 685 | $ 660 |
Receivables | 1,516 | 4,923 |
Inventories | 3,347 | 6,286 |
Total current assets | 5,548 | 11,869 |
Non-Current Assets | ||
Mineral properties | 8,610 | 2,525 |
Mining rights | 16,997 | 16,475 |
Property, plant and equipment | 10,508 | 9,478 |
Goodwill | 4,379 | 0 |
Other financial assets | 334 | 11 |
Deferred tax assets | 4,599 | 3,778 |
Other receivable | 3,814 | 3,072 |
Total non-current assets | 49,241 | 35,339 |
Total assets | 54,789 | 47,208 |
Current Liabilities | ||
Bank indebtedness | 14,989 | 12,381 |
Accounts payable and accrued liabilities | 5,992 | 6,681 |
Accounts payable with related parties | 6,717 | 246 |
Loan payable and current portion of long-term debt | 334 | 10,102 |
Total current liabilities | 28,032 | 29,410 |
Non-Current Liabilities | ||
Long-term debt | 312 | 674 |
Long-term debt with related parties | 11,708 | 0 |
Asset retirement obligation | 2,812 | 552 |
Deferred tax liabilities | 2,693 | 0 |
Other long-term payables | 56 | 79 |
Total non-current liabilities | 17,581 | 1,305 |
Total liabilities | 45,613 | 30,715 |
Commitments and contingencies (Note 27) | ||
Stockholders' Equity | ||
Capital stock: authorized - unlimited no par value issued and outstanding - 317,943,990 common shares (December 31, 2018 - 63,588,798 common shares) | 2,588 | 301 |
Preferred shares - unlimited no par value issues and outstanding - nil (December 31, 2018 - nil) | 0 | 0 |
Additional paid in capital | 181,676 | 181,549 |
Accumulated deficit | (174,270) | (164,717) |
Accumulated other comprehensive income (loss) | (575) | (519) |
Total stockholders' equity attributable to the parent | 9,419 | 16,614 |
Non-controlling interest | (243) | (121) |
Total stockholders' equity | 9,176 | 16,493 |
Total liabilities and stockholders' equity | $ 54,789 | $ 47,208 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Nov. 17, 2020 | |
Statement of Financial Position [Abstract] | |||
Capital stock authorized | Unlimited | Unlimited | |
Capital stock par value | $ .00 | $ 0 | |
Capital stock issued | 63,588,798 | 317,943,990 | |
Capital stock outstanding | 63,588,798 | 317,943,990 | |
Preferred shares authorized | Unlimited | Unlimited | |
Preferred shares par value | $ .00 | $ 0 | |
Preferred shares issued | 0 | 0 | |
Preferred shares outstanding | 0 | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Revenue | $ 21,938 | $ 47,441 |
Cost of sales | (16,430) | (36,361) |
Gross profit | 5,508 | 11,080 |
Operating Income (Expenses): | ||
Other operating income | 0 | 1,505 |
Exploration expenses | (3,758) | (1,802) |
Administrative expense | (7,262) | (6,017) |
Impairment of mineral properties | (1,996) | 0 |
Share-based payments expense | (127) | (190) |
Interest expense | (2,131) | (1,665) |
Total operating expense | (15,274) | (8,169) |
Other Income/(Expenses) | ||
Interest income | 191 | 142 |
Gain/(loss) on foreign exchange | 377 | (12,761) |
Accretion expense | (179) | (578) |
Total other income/(expenses) | 389 | (13,197) |
Income (loss) - before income taxes | (9,377) | (10,286) |
Income tax benefit (expense) | (298) | 2,440 |
Net income (loss) | (9,675) | (7,846) |
Attributable to non-controlling interest | (122) | (528) |
Attributable to equity share owners of the parent | (9,553) | (7,318) |
Other Comprehensive Income (Loss) net of tax | ||
Change in fair value of investment | (28) | (13) |
Foreign currency translation adjustment | (28) | (2,824) |
Total other comprehensive income (loss) | (56) | (2,837) |
Total comprehensive income (loss) | $ (9,731) | $ (10,683) |
Weighted average shares outstanding - basic and diluted | 282,306,312 | 254,387,482 |
Net income (loss) per share - basic and diluted | $ (0.03) | $ (0.03) |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity - USD ($) $ in Thousands | Capital Stock | Preferred Shares | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Additional Paid in Capital | Total Attributable to Parent | Non-Controlling Interest | Total |
Balance, beginning at Dec. 31, 2017 | $ 31,868 | $ 0 | $ (157,399) | $ 2,318 | $ 149,982 | $ 26,769 | $ 407 | $ 27,176 |
Share reorganization (Note 21) | (31,567) | 31,567 | 0 | 0 | ||||
Shares issued in reverse acquisition (Note 26) | 0 | |||||||
Net income (loss) | (7,318) | (7,318) | (528) | (7,846) | ||||
Other comprehensive income (loss) | (2,837) | (2,837) | (2,837) | |||||
Balance, ending at Dec. 31, 2018 | 301 | 0 | (164,717) | (519) | 181,549 | 16,614 | (121) | 16,493 |
Share reorganization (Note 21) | 0 | |||||||
Shares issued in reverse acquisition (Note 26) | 2,287 | 2,287 | 2,287 | |||||
Net income (loss) | (9,553) | (9,553) | (122) | (9,675) | ||||
Share based payment | 127 | 127 | 127 | |||||
Other comprehensive income (loss) | (56) | (56) | $ (56) | |||||
Balance, ending at Dec. 31, 2019 | $ 2,588 | $ 0 | $ (174,270) | $ (575) | $ 181,676 | $ 9,419 | $ (243) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash Flow From Operating Activities | ||
Net income/(loss) | $ (9,675) | $ (7,846) |
Items not affecting cash | ||
Depreciation of property, plant and equipment | 1,844 | 4,512 |
Depreciation of mining rights | 100 | 100 |
Share based payment expense | 127 | 190 |
Asset retirement obligation | 1,342 | (712) |
Write-down of inventory | 2,368 | 8,881 |
Impairment of asset | 1,996 | 690 |
Accretion expense | 179 | 578 |
Deferred tax benefit/(expense) | 298 | (2,440) |
Net change in non-cash working capital items | ||
(Increase)/decrease in receivables | 3,863 | 3,841 |
(Increase)/decrease in deferred tax assets | 1,787 | 1,548 |
(Increase)/decrease in inventory | 1,477 | 6,932 |
(Increase)/decrease in other financial assets | 32 | 0 |
Increase/(decrease) in accounts payable and accrued liabilities | (3,116) | (4,094) |
Increase/(decrease) in accounts payable and accrued liabilities with related parties | 301 | 0 |
Increase/(decrease) in other long-term payables | (23) | (82) |
Increase/(decrease) in transaction taxes payable | (126) | (329) |
Net cash provided by/(used in) operating activities | 2,774 | 11,769 |
Cash Flows From Investing Activities | ||
Purchases of property plant and equipment | (777) | (4,063) |
Purchase of mineral property | (216) | (698) |
Purchase of mining rights | 0 | (14,612) |
Proceeds from disposal of property, plant and equipment | 113 | 7,515 |
Net cash provided by/(used in) investing activities | (880) | (11,858) |
Cash Flow From Financing Activities | ||
Bank indebtedness | 2,608 | 7,877 |
Proceeds from loan | 0 | 6,278 |
Proceeds from loans with related parties | 8,515 | 0 |
Repayment of loan | (10,530) | (18,625) |
Net cash provided by/(used in) financing activities | 593 | (4,470) |
Net increase/(decrease) in cash | 2,487 | (4,559) |
Effect of foreign exchange on cash | (2,462) | 3,934 |
Cash, beginning of year | 660 | 1,285 |
Cash, end of the year | 660 | |
Taxes paid | (126) | (329) |
Interest paid | (416) | (634) |
Supplemental Non-Cash Information | ||
Change in fair value of investment | $ (28) | $ (13) |
Nature of Business
Nature of Business | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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 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. Hunt issued 254,355,192 common shares to the shareholders of PGP representing an ownership interest of approximately 80%. The operating name of Hunt Mining Corp. was changed to Patagonia Gold Corp (“the Company”) (Note 26). Comparative information for the Company is that of PGP (accounting acquirer) prior to the reverse acquisition on July 24, 2019. 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: Corporation Incorporation Percentage ownership Functional currency Business purpose Patagonia Gold S.A. (PGSA) Argentina 90 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 Cerro Cazador S.A. Argentina 100 US$ Exploration Stage Ganadera Patagonia S.R.L. Argentina 100 US$ Land Holding 1494716 Alberta Ltd. Canada 100 CAD$ Nominee Shareholder Hunt Gold USA LLC USA 100 US$ Management Company The Company’s activities include the exploration 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 ore reserves exist are classified as exploration-stage. Properties where economically recoverable ore 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 ore reserves required to be classified in either the development or production stage. |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP). 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, except for cash flow information. The Company's presentation currency is the US Dollar. The preparation of the consolidated financial statements requires 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 US GAAP 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 6. 2. Going Concern |
Going Concern
Going Concern | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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. During the year ended December 31, 2019, the Company had net loss of $9,675. As at December 31, 2019, the Company has negative working capital of $22,484 and had an accumulated deficit of $174,270. The Company’s ability to continue as a going concern is dependent upon the ability to generate cashflows from operations and obtain financing. The Company intends to continue funding operations through operation of Cap-Oeste, Lomada, Martha, La Josefina project and equity financing arrangements, which may be insufficient to fund its capital expenditures, working capital and other cash requirements for the year ending December 31, 2020. There can be no assurance that the steps management is taking will be successful. These factors, among others, indicate the existence of a material uncertainty that cast substantial doubt about the Company's ability to continue as a going concern. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty. These adjustments could be material. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 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. (b) Consolidation The Company's consolidated financial statements consolidate 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 Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency 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. Revenues and expenses are translated at average exchange rates throughout the reporting period. Gains and losses on translation of foreign currencies are included in the consolidated statement of operations. The Company’s functional currency is the Canadian dollar. The Company’s subsidiaries have functional currencies in Canadian dollars (“CAD”), US dollars (“US”), Chilean Peso (“CH$”) and Great Britain Pound (“GBP”). These consolidated financial statements are translated to their US dollar equivalents using the current rate method. Under this method, the statements of operations and comprehensive loss and cash flows for each period have been translated using the average exchange rates prevailing during each period. All assets and liabilities have been translated using the exchange rate prevailing at the balance sheet date. Translation adjustments are recorded as income or losses in other comprehensive income or loss. 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 the accompanying consolidated statement of operations and comprehensive income/(loss). (d) Financial instruments The Company measures the fair value of financial assets and liabilities based on US GAAP guidance, which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. The Company classifies financial assets and liabilities as held-for-trading, available-for-sale, held-to-maturity, loans and receivables or other financial liabilities depending on their nature. Financial assets and financial liabilities are recognized at fair value on their initial recognition, except for those arising from certain related party transactions, which are accounted for at the transferor's carrying amount or exchange amount. Financial assets and liabilities classified as held-for-trading are measured at fair value, with gains and losses recognized in net income or loss. Financial assets classified as held-to-maturity, loans and receivables, and financial liabilities other than those classified as held-for-trading are measured at amortized cost, using the effective interest method of amortization. Financial assets classified as available-for-sale are measured at fair value, with unrealized gains and losses being recognized as other comprehensive income or loss until realized, or if an unrealized loss is considered other than temporary, the unrealized loss is recorded in income or loss. See Note 23 to the Consolidated Financial Statements for fair value disclosures. (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. 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 statement of operations and comprehensive income/(loss). The Company charges to the consolidated statement of operations and comprehensive income/(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 statement of operations and comprehensive income/(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 these consolidated statement of operations and comprehensive income/(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. Depreciation of plant, other than Mina Martha, is based on a unit-of-production method over the estimated period of economically recoverable reserves. Depreciation begins once the asset is in the state intended for use by management. 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 these consolidated statement of operations and comprehensive income/(loss). (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. Asset impairment is considered to exist if the total estimated undiscounted pre-tax future cash flows are less than the carrying amount of the asset. In estimating future cash flows, assets are grouped at the lowest level for which there is identifiable cash flows that are largely independent of future cash flows from other asset groups. An impairment loss is measured by discounted estimated future cash flows and recorded by reducing the asset's carrying amount to fair value. 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 still lower level of geological confidence and economic modeling. During the year ended December 31, 2019, the Company performed an analysis of the San José Project in Uruguay and determined that the long-lived asset for the San José Project was impaired. A non-cash impairment charge of $1,996 was recorded and allocated to mineral properties (see Note 8). (k) Asset retirement obligations Upon retirement of the Company’s mineral properties, retirement costs will be incurred by the Company. Estimates of these costs are subject to uncertainty associated with the method, timing and extent of future decommissioning activities. The Company records the fair value of an asset retirement obligation as a liability in the period in which it incurs a legal or constructive obligation associated with the retirement of tangible long-lived assets that result from the acquisition, construction, development, and/or normal use of the long-lived assets. The Company also records a corresponding asset, which is depleted over the life of the asset. Subsequent to the initial measurement of the asset retirement obligation, the obligation is adjusted at the end of each period to reflect the passage of time (accretion expense) and changes in the estimated future cash flows underlying the obligation (asset retirement cost). The Argentine mining regulations require that mine properties to 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. The Company has adopted Asset Retirement and Environmental Obligations ASC 410 (l) Income taxes The Company accounts for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under the asset and liability method, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recognized if it is more likely than not that some portion or all of the deferred tax asset will not be recognized. 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 is 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 financial statements. (m) Share-based payments The Company offers a share option plan for its directors, officers, employees and consultants. ASC 718 “Compensation – Stock Compensation” Measurement of share-based payment transactions with non-employees is based on the fair value of whichever is more reliably measurable: (a) the goods or services received; or (b) the equity instruments issued. The fair value of the share-based payment transaction is determined at the earlier of the performance commitment date or performance completion date. (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 ASC 606 when it has satisfied the following criteria: identifiable contract, identifiable performance obligation, determinable transaction price, allocating the transaction price and satisfying performance obligations. 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 ASC 280, 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) Highly inflationary economy The Company has operations in Argentina through its subsidiaries as disclosed in Note 1 and their functional currency has historically been the Argentine Peso. The Company monitors inflation rates in the countries it operates under ASC 830-10-45-12. An economy must be classified as highly inflationary when the cumulative three-year inflation rate exceeds 100%. During the year ended December 31, 2018, the economic environment in Argentina experienced the acceleration of multiple local inflation indices, a three-year cumulative inflation rate of the local Argentine wholesale price index exceeding 100% in July 1, 2018, and the significant devaluation of the Argentine Peso. As such, the Company has considered Argentina to be a highly inflationary economy. In accordance with ASC 830, beginning on July 1 the functional currency of the Company’s Argentinian subsidiaries was changed to the Company’s reporting currency ($USD). The following table presents the application ASC 830-10 for a highly inflationary economy for the conversion of account balances: Non-monetary Assets and Liabilities Monetary assets and Liabilities Equity Translated at the balance of prior period end Translated at the balance of prior period end Remeasured using historical exchange rate (r) Business Combinations The Company accounts for business combinations under the acquisition method of accounting in accordance with ASC 805, Business Combinations, by recognizing identifiable tangible and intangible assets acquired, liabilities assumed, and non-controlling interests in the acquired business at their fair values. The excess of the costs of the acquired business over the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed is recorded as Goodwill. Acquisition related costs are expensed as incurred. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recently issued and adopted accounting pronouncements Leases In February 2016, Accounting Standard Update (“ASU”) No. 2016-02 Leases Recently issued but not yet adopted accounting pronouncements Financial Instruments - Credit Losses In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326)”. The new standard is effective for reporting periods beginning after December 15, 2019. The standard replaces the incurred loss impairment methodology under current GAAP with a methodology that reflects expected credit losses and requires the use of a forward-looking expected credit loss model for accounts receivables, loans, and other financial instruments. The standard requires a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. We plan to adopt the new credit loss standard effective January 1, 2020. We do not expect the new credit loss standard to have a material effect on our financial position, results of operations or cash flows. Income Taxes In December 2019, the FASB issued ASU 2019-12, “Income Taxes - Simplifying the Accounting for Income Taxes (Topic 740)” which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. ASU 2019-12 will be effective for interim and annual periods beginning after December 15, 2020 (January 1, 2021 for the Company). Early adoption is permitted. The Company is currently evaluating the impact the adoption of ASU 2019-12 will have on its consolidated financial statements. |
Critical Accounting Judgments a
Critical Accounting Judgments and Estimates | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
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, provisions, highly inflationary economy, title to mineral property interests 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) and Argentina (U.S. dollar and Argentine Peso), management considered the indicators of ASC 830 Foreign Currency Matters 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. Highly inflationary economy The Company has designated Argentina as a highly inflationary economy in accordance with ASC 830, Foreign Currency Matters (b) Use of estimates The preparation of theses consolidated financial statements in conformity with US GAAP 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, asset retirement obligations, 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. 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. Business Combinations The acquisition method of accounting for business combinations in accordance with ASC 805 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. Change in estimates During the year 2018, the Company conducted a review of its plant and buildings which resulted in changes in its expected use. It was determined that the renovation work performed in 2016 and 2017 on these assets was having greater success than originally anticipated in extending their useful life. Additionally, metallurgical studies performed throughout 2018 confirmed that the plant could be successfully used to process mineralized materials from other mineral properties of the Company. It is now expected that the useful life of these assets will be extended from an original estimate of 36 months in 2017 to 87 months from December 31, 2018. The changes to the useful life of these assets were adopted prospectively for the year ended December 31, 2018. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | December 31, 2019 December 31, 2018 $’000 $’000 Gold held on carbon $ 1,422 $ 1,571 Silver and gold concentrate 157 - Material stockpiles - 2,996 Materials and supplies 1,768 1,719 $ 3,347 $ 6,286 During the year ended December 31, 2019, the Company closed the Lomada project and put the Cap-Oeste project into care and maintenance. As a result, the carrying value of inventory for these projects has been reviewed for impairment. The net realizable value of the inventory is less than the costs incurred in establishing the ore stockpile and therefore a write down of $2.37 million was required and is recorded in cost of sales in these consolidated statements of operations and comprehensive income (loss). |
Mineral Properties
Mineral Properties | 12 Months Ended |
Dec. 31, 2019 | |
Mineral Properties, Net [Abstract] | |
Mineral Properties | Mining assets Surface rights acquired Total $’000 $’000 $’000 Cost Balance at January 1, 2018 $ 1,280 $ 847 $ 2,127 Additions 500 198 698 Exchange differences - (300 ) (300 ) Balance December 31, 2018 $ 1,780 $ 745 $ 2,525 Reverse acquisition (Note 26) 6,830 1,035 7,865 Additions 216 - 216 Impairment (1,996 ) - (1,996 ) Balance December 31, 2019 $ 6,830 $ 1,780 $ 8,610 Trilogy Mining Corporation In January 2016, Patagonia Gold PLC (PGP) entered into an earn–in agreement with Trilogy Mining Corporation (“Trilogy”) in relation to the San José Project in Uruguay. This has been recognized within mining assets at a cost of $1,996 (2018: $1,780). In December 2019, the Company announced the termination of its option agreement with Trilogy and in exchange has received common shares of Trilogy, that will result in PGP owning 42.5% of the then issued and outstanding shares of Trilogy. Owing to this during the year ended December 31, 2019 the Company has impaired $1,996 of mining asset related to San José Project in Uruguay and is recorded in Operating expenses in the consolidated statements of operations and comprehensive income (loss). 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. 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% of the joint venture company and Fomicruz would own the remaining 19%. Fomicruz has the option to earn up to a 49% participating interest in the JV Corporation by reimbursing the Company an equivalent amount, up to 49%, of the exploration investment made by the Company. 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. As at December 31, 2018, the Company had incurred approximately $20 million and is in current discussions with Fomicruz to develop a plan for production. In October 2019, the agreement was extended until April 30, 2021 which period may be extended for an additional one-year term. As at December 31, 2019, this project has a carrying amount of $Nil (2018 - $Nil) on the consolidated balance sheet. |
Asset Retirement Obligation
Asset Retirement Obligation | 12 Months Ended |
Dec. 31, 2019 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligation | 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 FASB ASC 410-20, Asset Retirement Obligations, the Company recognized the fair value of that liability as an asset retirement obligation. The total amount of undiscounted cash flows required to settle the estimated obligation is $5,533 which has been discounted using a credit-adjusted rate of 24.94% (2018 – 24.94%) and an inflation rate of 2.29% (2018 – 2.29%). The following table describes the changes to the Company's asset retirement obligation liability: December 31, 2019 December 31, 2018 $’000 $’000 Asset retirement obligation at beginning of year $ 552 $ 686 Reverse acquisition (note 26) 739 - Change in estimate 1,342 (712 ) Accretion expense 179 578 Asset retirement obligation at end of year $ 2,812 $ 552 |
Mining Rights
Mining Rights | 12 Months Ended |
Dec. 31, 2019 | |
Mining Rights | |
Mining Rights | Fomicruz Agreement Minera Aquiline Argentina Total $’000 $’000 $’000 Balance at January 1, 2018 $ 3,388 $ - $ 3,388 Additions - 14,612 14,612 Amortization (100 ) - (100 ) Exchange differences - (1,425 ) (1,425 ) Balance December 31, 2018 $ 3,288 $ 13,187 $ 16,475 Amortization (100 ) - (100 ) Exchange differences - 622 622 Balance December 31, 2019 $ 3,188 $ 13,809 $ 16,997 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% equity interest in PGSA. The Fomicruz Agreement establishes the terms and conditions of the strategic partnership for the future development of certain PGSA mining properties in the Santa Cruz. The Company will fund 100% of all exploration expenditures on the PGSA properties to the pre-feasibility stage, with no dilution to Fomicruz. 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. 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% interest in PGSA acquired by Fomicruz, on or about October 14, 2011 at $4 million. In determining this fair value estimate, management considered many factors including the net assets of PGSA and the illiquidity of the 10% interest. This amount has been recorded as an increase in the equity of PGSA and as a mining right asset. In these consolidated financial statements, the increase in equity in PGSA has been recorded as non-controlling interest. The initial share of net assets of PGSA ascribed to the non-controlling interest amounted to $4 million. Minera Aquiline Argentina Agreement On January 31, 2018, Patagonia, through a wholly owned subsidiary (Patagonia Gold Canada Inc. “PGCAD”), has acquired the Calcatreu gold asset in Rio Negro, Argentina, by way of acquiring 100% of the shares of Minera Aquiline Argentina S.A. (“MASA”), a subsidiary of Pan American Silver Corporation. Total consideration for the acquisition amounted to $15 million. PGCAD has made the initial payment of $5 million on January 31, 2018 and the final payment of $10 million on legal completion on May 18, 2018. This transaction was accounted for as an asset acquisition and the purchase consideration was allocated to Mining Rights at $14.6 million and other net assets at $0.4 million. These mining rights will be amortized on a unit-of-production method over the estimated period of economically recoverable resources once the project reaches the commercial production phase. |
Other Financial Assets
Other Financial Assets | 12 Months Ended |
Dec. 31, 2019 | |
Other Assets, Noncurrent [Abstract] | |
Other Financial Assets | The Company has short-term investments in equity securities which are recorded at fair value through other comprehensive income/(loss). As of the year ended December 31, 2019, the value of the short-term investments in equity decreased to $8. The change in the fair value of $3 for the year ended December 31, 2019 is recorded as other comprehensive loss in the Company’s consolidated statement of operations and comprehensive income/(loss). The Company has a performance bond that was originally required to secure the Company’s rights to explore the La Josefina property. It is a step-up US dollar denominated 2.5% coupon bond, paying quarterly, issued by the Government of Argentina with a face value of $600 and a maturity date of 2035. The bond trades in the secondary market in Argentina. The bond was originally purchased for $247. As of the year ended December 31, 2019, the value of the bond increased to $326. The change in the face value of the performance bond of $25 for the year ended December 31, 2019 ended is recorded as other comprehensive income/(loss) in the Company’s consolidated statement of operations and comprehensive income/(loss). Since Cerro Cazador S.A. (“CCSA”) fulfilled its exploration expenditure requirement mandated by the agreement with Fomicruz, the performance bond was no longer required to secure the La Josefina project. Therefore, in September 2010 the Company used the bond to secure the La Valenciana project, an additional Fomicruz exploration project. As of December 31, 2019, there are no restrictions on the performance bond. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Plant Buildings Vehicles and Equipment Improvements and advances Total $’000 $’000 $’000 $’000 $’000 Cost Balance at December 31, 2017 $ 8,242 $ 356 $ 15,234 $ 1,065 $ 24,897 Additions 576 - 3,263 224 4,063 Disposals - - (56 ) - (56 ) Transfers - - 344 (344 ) - Foreign exchange difference (2,917 ) (126 ) (5,327 ) (379 ) (8,749 ) Balance at December 31, 2018 $ 5,901 $ 230 $ 13,458 $ 566 $ 20,155 Reverse acquisition (Note 26) 1,732 69 409 - 2,210 Additions 203 - 244 330 777 Disposals - - (326 ) (51 ) (377 ) Transfers - - 106 (106 ) - Balance at December 31, 2019 $ 7,836 $ 299 $ 13,891 $ 739 $ 22,765 Accumulated depreciation Balance at December 31, 2017 $ 4,505 $ 45 $ 3,960 $ - $ 8,510 Disposals - - (41 ) - (41 ) Depreciation for the year 2,849 4 1,659 - 4,512 Impairment - - 690 - 690 Foreign exchange difference (1,593 ) (16 ) (1,385 ) - (2,994 ) Balance at December 31, 2018 $ 5,761 $ 33 $ 4,883 $ - $ 10,677 Disposals - - (264 ) - (264 ) Depreciation for the year 144 9 1,691 - 1,844 Balance at December 31, 2019 $ 5,905 $ 42 $ 6,310 $ - $ 12,257 Net book value At December 31, 2018 $ 140 $ 197 $ 8,575 $ 566 $ 9,478 At December 31, 2019 $ 1,931 $ 257 $ 7,581 $ 739 $ 10,508 |
Receivables
Receivables | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Receivables | December 31, December 31, 2019 2018 $’000 $’000 Receivable from sale $ 150 $ - Value added tax ("VAT") recoverable 880 3,843 Other receivables 486 1,080 Total receivables $ 1,516 $ 4,923 |
Other Receivables
Other Receivables | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Other Receivables | December 31, December 31, 2019 2018 $’000 $’000 Value added tax ("VAT") recoverable $ 1,226 $ 1,097 Other receivables 2,588 1,975 Total Other Receivables $ 3,814 $ 3,072 |
Bank Indebtedness
Bank Indebtedness | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Bank Indebtedness | As at December 31, 2019, the Company has bank indebtedness of $14,989 (2018 – $12,381) in the form of operating lines of credit which have an interest rate of 1.5% plus refinancing rate and mature on the June 30, 2020. As at December 31, 2019, the interest rate on the lines of credit is 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, 2019 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities | December 31, December 31, 2019 2018 $’000 $’000 Trade accounts payable and accrued liabilities $ 5,102 $ 4,695 Income tax - 462 Other accruals 890 1,524 Accounts payable to related parties (note 21) 6,717 246 Total $ 12,709 $ 6,927 |
Loan Payable and Current Portio
Loan Payable and Current Portion of Long-term Debt | 12 Months Ended |
Dec. 31, 2019 | |
Loans Payable [Abstract] | |
Loan Payable and Current Portion of Long-term Debt | December 31, December 31, 2019 2018 $’000 $’000 Current portion of long-term debt (note 18) $ 200 $ 37 Leases payable 134 393 Loans payable - 9,672 Total $ 334 $ 10,102 |
Long-term Debt
Long-term Debt | 12 Months Ended |
Dec. 31, 2019 | |
Long-term Debt, Unclassified [Abstract] | |
Long-term Debt | December 31, December 31, 2019 2018 $’000 $’000 Loan to related party secured by a letter of guarantee from the Company, at 5% interest per annum, due 2021 (note 21) $ 7,908 $ - Loan to related party secured by assets of the Company payable 5.75% interest per annum, due 2022 512 711 Acquired in reverse acquisition. Unsecured loan payable to related party at 8% interest per annum, due 2022 (note 21 and 26) 990 - Acquired in reverse acquisition. Unsecured loan payable to related party at 8% interest per annum, due 2021 (note 21 and 26) 826 - Acquired in reverse acquisition. Unsecured loan payable to related party at 7% interest per annum, due 2021 (note 21 and 26) 1,038 - Accrued interest on debt 946 - $ 12,220 $ 711 Less current portion (200 ) (37 ) $ 12,020 $ 674 Principal payments on long-term debts are due as followed: Year ending December 31, 2020 200 2021 9,546 2022 2,474 |
Net Income (Loss) per Share
Net Income (Loss) per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) per Share | Basic net income (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised or converted into common stock. For the year ended December 31, 2019, there were 7,650,000 stock options that were not included in the diluted earnings per share calculation as the shares would be antidilutive. December 31, December 31, 2019 2018 Net income (loss) ($’000) $ (9,675 ) $ (7,846 ) Weighted average number of common shares outstanding – basic and diluted 282,306,312 254,387,482 Net income (loss) per share $ (0.03 ) $ (0.03 ) |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Capital Stock | Authorized: Unlimited number of common shares without par value Unlimited number of preferred shares without par value Issued: Common Shares Year ended Year ended December 31, 2019 December 31, 2018 Number Amount Number * Amount $’000 $’000 Balance, beginning of year 254,355,192 $ 301 25,436,715,471 $ 31,868 Share reorganization - - (25,182,360,279 ) (31,567 ) Share issued in reverse acquisition (note 26) 63,588,798 2,287 - - Balance, end of year 317,943,990 $ 2,588 254,355,192 $ 301 *The comparative share capital amounts for the year ended December 31, 2018 have been retroactively adjusted to reflect the legal capital of the Patagonia Gold Corp. (accounting acquiree). These amounts have been multiplied by 10.76 to reflect the shares issued to Patagonia Gold PLC in the reverse acquisition transaction. 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 per share and will not have voting rights. As of December 31, 2019, there were no preferred shares issued by the Company (2018 - nil). Share reorganization On 9 May 2018, Patagonia Gold PLC undertook a capital reorganisation of the Company's existing ordinary share capital, reducing the number of existing ordinary shares in issue (the “Existing Ordinary Shares”) by a factor of 100. The capital reorganisation consisted of: the sub-division of each Existing Ordinary Share of £1 pence each into one Interim Ordinary Share of £0.01 pence and one Deferred Share of £0.99 pence; followed by the consolidation of every 100 Interim Ordinary Shares into one new ordinary share of £1 pence (the “New Ordinary Shares”); the sale of all fractional entitlements arising on consolidation; and the buy-back of all of the Company’s Deferred Shares of £0.99 pence each and subsequent cancellation of these shares. As result of the capital reorganisation Patagonia Gold has in issue £254,355,192* of New Ordinary Shares of £1 pence each in nominal value. The difference between the nominal value of the share capital prior to the capital reorganisation and the nominal value of share capital after it was recognised within a capital redemption reserve. Shares issued in reverse acquisition On July 24, 2019, Hunt concluded an agreement with PGP on the terms of a recommended share for share exchange offer to be made by Hunt for all the issued shares of common stock of PGP in exchange for the common shares of Hunt Mining on the basis of 10.76 Hunt Shares for each PGP Share. Hunt issued 254,355,192 common shares to the shareholders of PGP representing an ownership interest of approximately 80% in Hunt in exchange for all of the issued and outstanding shares of PGP (Note 26). 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 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. All equity-settled share-based payments are ultimately recognized as an expense in the statement of operations and comprehensive income/(loss) with a corresponding credit to “Additional Paid in Capital”. 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. December 31, 2019 December 31, 2018 Number of options Weighted Average Price (CAD) Number of options Weighted Average Price (CAD) Balance, beginning of year 1,706,830 $ 13.896 171,808,000 $ 0.139 After Share reorganization - $ - 1,718,080 $ 13.903 Granted 7,650,000 $ 0.065 - $ - Expiration of stock options (1,706,830 ) $ 13.896 (11,250 ) $ 13.886 Balance, end of year 7,650,000 $ 0.065 1,706,830 $ 13.896 Range of Exercise prices (CAD) Number outstanding Weighted average life (years) Weighted average exercise price (CAD) Number exercisable on December 31, 2018 Stock options $ 0.065 7,650,000 4.74 $ 0.065 7,650,000 On May 29, 2019, all outstanding stock option holders consented to the cancellation of their outstanding stock options. On September 25, 2019, the Company granted 7,650,000 options to directors, officers, and employees with an exercise price of CAD $0.065 and an expiry date of September 25, 2024. The stock options vest one year after the date of grant. The fair value of the options on grant date was estimated to be $456 and the Company recognized an expense of $127 during the year. The fair value of the options were calculated using the Black-Scholes option pricing model and using the following assumptions: Year ended December 31, 2019 Discount rate 1.46% Expected volatility 253.14% Expected life (years) 5 Expected dividend yield 0% Forfeiture rate 0% Stock price CAD$ 0.06 Warrants _____________ There are no warrants outstanding at 31 December 2019 as they expired without being exercised during the previous year at the end of their four-year term. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
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 Financial Statements are as follows: 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 Year ended December 31 As at December 31, 2019 and December 31, 2018 $’000 $’000 $’000 $’000 $’000 $’000 A company controlled by a director 1 2019 - - - - 6,374 - - admin, office, and interest expenses 2018 - - - - - - A company controlled by a director 2019 346 7,908 33 - 227 8,163 - salaries and wages 2018 78 - - - 150 - Directors 2019 337 - 317 - 116 - - salaries and wages 2018 293 - - - 96 - Director 1 2019 - 347 - - - 3,545 -loans 2018 - - - - - - 1 Balances owed to related parties were acquired as part of the reverse acquisition (Note 18 and 26) As at December 31, 2019, the Company has $6,717 in accounts payable owing to related parties which relate primarily to funds advanced from companies controlled by directors in order to cover exploration costs. |
Administrative Expenses
Administrative Expenses | 12 Months Ended |
Dec. 31, 2019 | |
Selling, General and Administrative Expense [Abstract] | |
Administrative Expenses | December 31, 2019 December 31, 2018 $’000 $’000 General and administrative $ 4,183 $ 3,466 Argentina statutory taxes 641 515 Professional fees 1,566 862 Operating leases 130 86 Directors’ remuneration 259 251 Gain on sale of property, plant and equipment (83 ) (42 ) Depreciation of property, plant and equipment 1,844 4,512 Depreciation allocated to inventory (1,644 ) (4,447 ) Amortization of mining rights 100 100 Consulting fees 18 26 Net impairment of assets - 689 Transaction taxes expenses (income) 248 (1 ) Total $ 7,262 $ 6,017 |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments, Owned, at Fair Value [Abstract] | |
Financial Instruments | The Company's financial instruments consist of cash, receivables, performance bond, 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. Fair value As at December 31, 2019, there were no changes in the levels in comparison to December 31, 2018. The fair values of financial instruments are summarized as follows: December 31, 2019 December 31, 2018 Carrying amount Fair value Carrying amount Fair value $’000 $’000 $’000 $’000 Financial Assets Amortized cost Cash (Level 1) 685 685 660 660 Available for sale Other financial assets (Level 1) 334 334 11 11 Loans and receivables Receivables and other receivable ¹ 3,224 3,224 3,055 3,055 Financial Liabilities Amortized cost Bank indebtedness 14,989 14,989 12,381 12,381 Accounts payable and accrued liabilities 12,709 12,709 6,927 6,927 Loan payable and current portion of long-term debt 334 334 10,102 10,102 Long-term debt 13,026 12,020 674 674 ¹ Amounts exclude value added tax (“VAT”) recoverable of $880 and $3,843 as at December 31, 2019 and 2018 respectively. Cash and 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, bank indebtedness, loan payable, interest payable, and long-term debt approximate their fair value because of the short-term nature of these instruments and because long-term debt approximates a market rate of interest. The Company assessed that there were no indicators of impairment for these financial instruments. 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. 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, 2019, the Company had two customers whose trade receivables of $150 (2018 – $225) accounted for greater than 10% of the total 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. The Company has concentrations in the volume of sales it made to customers. For the year ended December 31, 2019, the Company made sales of $21,938 (2018 - $47,441) to two customers which accounted for greater than 10% of total revenue. The Company currently maintains a substantial portion of its day-to-day operating cash balances at financial institutions. At December 31, 2019, the Company had total cash balances of $685 (2018 - $660) at financial institutions, where $Nil (December 31, 2018- $Nil) is in excess of federally insured limits. |
Non-controlling Interest
Non-controlling Interest | 12 Months Ended |
Dec. 31, 2019 | |
Noncontrolling Interest [Abstract] | |
Non-controlling Interest | Amount $’000 Balance at December 31, 2017 $ 407 Share of 2018 operating income/(loss) (528 ) Balance at December 31, 2018 (121 ) Share of operating income/(loss) (122 ) Balance at December 31, 2019 $ (243 ) On October 14, 2011, Patagonia Gold PLC, PGSA and Fomicruz entered into the Fomicruz Agreement (Note 10). Pursuant to the Fomicruz Agreement, Fomicruz contributed to PGSA the rights to explore and mine on Fomicruz’s mining properties in Santa Cruz Province in exchange for a 10% equity interest in PGSA. This amount has been recorded as an increase in the equity of PGSA and as mining rights. In these consolidated financial statements, the increase in equity of PGSA has been recorded as non-controlling interest. The share of operating losses relates to Lomada de Leiva which commenced production in 2013 and Cap-Oeste which commenced production in 2016. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
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. The Company’s net income/(loss) and its geographic allocation of total assets and total liabilities may be summarized as follows: Lomada Project Cap- Oeste Project Calcatreu Project Martha and La Josefina Projects Argentina Uruguay and Chile UK North America Total $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Revenue $ 4,750 14,903 $ - $ 2,285 $ - $ - $ - $ 21,938 Cost of sales (3,879 ) (11,006 ) - (1,545 ) - - - (16,430 ) Gross profit $ 871 3,897 $ - $ 740 $ - $ - $ - $ 5,508 Operating expense Exploration expense $ - (227 ) $ (1,300 ) $ (300 ) $ (1,931 ) $ - $ - $ (3,758 ) Administrative expense - - (279 ) (871 ) (4,072 ) (1,433 ) (307 ) (6,962 ) Depreciation expense - - (18 ) (115 ) (67 ) (100 ) - (300 ) Impairment of mineral properties - - - - - (1,996 ) - (1,996 ) Share-based payments - - - - - (40 ) (87 ) (127 ) Interest expense - - - - (765 ) (782 ) (584 ) (2,131 ) Total operating expense $ - (227 ) $ (1,597 ) $ (1,286 ) $ (6,835 ) $ (4,351 ) $ (978 ) $ (15,274 ) Other income/(expense) Interest income $ - - $ 34 $ - $ 157 $ - $ - $ 191 Gain/(loss) on foreign exchange - - (11 ) (152 ) 628 (440 ) 352 377 Accretion expense (46 ) (39 ) - (94 ) - - - (179 ) Total other income/(expense) $ (46 ) (39 ) $ 23 $ (246 ) $ 785 $ (440 ) $ 352 $ 389 Income/(loss) – before income tax $ 825 3,631 $ (1,574 ) $ (792 ) $ (6,050 ) $ (4,791 ) $ (626 ) $ (9,377 ) Income tax/(benefit) - - (193 ) (866 ) 761 - - (298 ) Net income/(loss) $ 825 3,631 $ (1,767 ) $ (1,658 ) $ (5,289 ) $ (4,791 ) $ (626 ) $ (9,675 ) Lomada Project Cap- Oeste Project Calcatreu Project COSE Project Argentina Uruguay and Chile UK North America Total $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Revenue $ - $ 47,441 $ - $ - $ - $ - $ - $ 47,441 Cost of sales - (36,361 ) - - - - - (36,361 ) Gross profit $ - $ 11,080 $ - $ - $ - $ - $ - $ 11,080 Operating expense Other operating income $ - $ - $ - $ 1,505 $ - $ - $ - $ 1,505 Exploration expense - - (1,720 ) - (82 ) - - (1,802 ) Administrative expense - - (61 ) - (4,706 ) (1,005 ) (80 ) (5,852 ) Depreciation expense - - (105 ) - (60 ) - - (165 ) Impairment of mineral properties - - - - - - - - Share-based payments - - - - - (190 ) - (190 ) Interest expense - - - - (1,275 ) (390 ) - (1,665 ) Total operating expense $ - $ - $ (1,886 ) $ 1,505 $ (6,123 ) $ (1,585 ) $ (80 ) $ (8,169 ) Other income/(expense) Interest income $ - $ - $ - $ - $ 142 $ - $ - $ 142 Gain/(loss) on foreign exchange - - (71 ) - (12,252 ) 1,026 (1,464 ) (12,761 ) Accretion expense - - - - (578 ) - - (578 ) Total other income/(expense) $ - $ - $ (71 ) $ - $ (12,688 ) $ 1,026 $ (1,464 ) $ (13,197 ) Income/(loss) – before income tax $ - $ 11,080 $ (1,957 ) $ 1,505 $ (18,811 ) $ (559 ) $ (1,544 ) $ (10,286 ) Income tax/(benefit) - - - - 2,440 - - 2,440 Net income/(loss) $ - $ 11,080 $ (1,957 ) $ 1,505 $ (16,371 ) $ (559 ) $ (1,544 ) $ (7,846 ) Total Assets Total liabilities December 31, December 31 2019 2018 2019 2018 $’000 $’000 $’000 $’000 Argentina – Cap-Oeste $ 9,116 $ 19,005 $ 2,629 $ 4,374 Argentina - Lomada 2,996 1,231 1,979 1,220 Argentina - Calcatreu 14,678 13,751 1,591 256 Argentina - Martha & La Josefina 12,106 - 5,475 - Argentina and Chile 11,263 11,270 3,875 13,532 United Kingdom 177 1,951 20,240 11,333 North America 4,453 - 9,824 - Total $ 54,789 $ 47,208 $ 45,613 $ 30,715 |
Reverse Acquisition
Reverse Acquisition | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Reverse Acquisition | On July 24, 2019, Hunt completed a reverse acquisition with PGP on the terms that Hunt would acquire 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. Hunt issued 254,355,192 common shares to the shareholders of PGP representing an ownership interest of approximately 80%. The purpose of the reverse acquisition was to form an enlarged, junior precious metals explorer and producer focused on the Santa Cruz region of Argentina. In particular, Patagonia Gold’s Cap-Oeste underground resource will gain access to Hunt’s Mina Martha processing plant, which is able to treat such mineralization which is expected to lead to more stable cash flow generation from any planned future development of the Cap-Oeste underground mine, which could be utilized to reduce the combined group’s debt obligations and invest in its exploration and development stage projects, thereby ultimately lowering the risk profile of the combined group. As a result of the reverse acquisition, former shareholders of PGP acquired control of Hunt, and the substance of the transaction was a reverse acquisition, where the transaction constitutes a business combination for accounting purposes and is accounted for using the acquisition method under ASC 805. PGP is deemed to be the acquiring company and its assets and liabilities, equity and historical operating results are included at their historical carrying values, and the net assets of Hunt are recorded at the fair value as at the date of the transaction. Transaction costs in the amount of $1,511 were incurred in connection with the reverse acquisition and were expensed as incurred. The fair value of the equity consideration paid as part of the transaction as well as the fair value of identifiable assets and liabilities acquired are presented below. Per ASC 805 because it may take time for the Company to obtain the necessary information to recognize and measure all the items exchanged in a business combination, the acquirer is allowed a measurement period of up to one year from the acquisition date to complete the purchase price allocation. The Company is currently in the process of gathering the facts and circumstances to complete the assessment of the fair value of Hunt’s property, plant and equipment and mineral properties, which will be finalized by the end of measurement period. The following table summarizes the preliminary purchase price allocation. Amount $’000 Fair value of the Company’s shares (1) $ 2,287 Less net identifiable assets (liabilities) of the Company Cash 60 Accounts receivable 1,183 Prepaid expenses 14 Inventory 906 Mineral properties 7,865 Property, plant and equipment 2,210 Goodwill 4,379 Performance bond 351 Accounts payable and accrued liabilities (8,725 ) Bank indebtedness (400 ) Loan payable and current portion of long-term debt (581 ) Long-term debt (2,062 ) Accrued interest on debt (550 ) Asset retirement obligation (739 ) Deferred tax liabilities (1,624 ) $ 2,287 (1) The fair value of 5,908,687 common shares issued to pre-reverse acquisition Hunt shareholders is $2,287 based on the fair value of $0.387 per common share (converted from GBP 0.310 closing stock price of Patagonia Gold PLC prior to the transaction on July 24, 2019). The amount of Hunt’s revenue and comprehensive loss included in the Company’s consolidated income statement for the year ended December 31, 2019, and the revenue and comprehensive loss of the combined entity had the reverse acquisition date been January 1, 2019, and January 1, 2018, are as follows: Revenue Comprehensive Income (Loss) $’000 $’000 Actual results of Hunt from July 24, 2019 to December 31, 2019 $ 2,286 $ (1,650 ) 2019 combined results (had the reverse acquisition occurred on January 1, 2019) $ 23,067 $ (13,117 ) 2019 combined results (had the reverse acquisition occurred on January 1, 2018) $ 23,067 $ (11,606 ) 2018 combined results (had the reverse acquisition occurred on January 1, 2018) $ 51,402 $ (15,489 ) |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | On October 31, 2011, the Company signed an agreement with the owners of the Piedra Labrada Ranch for the use and lease of facilities on the same premises as the Company’s La Josefina facilities. The initial term was for three years beginning November 1, 2011 and ended on October 31, 2014, including annual commitments of $60. The Company extended this agreement on April 30, 2015 for three years with an option to renew for a second three-year term. On October 22, 2019, an agreement was executed for the renewal of this lease from November 1 st 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. As of the date hereof, no litigation has been brought by Republic against the Company. The Company believes the claims in the Demand Letter are without merit and intends to vigorously defend against any action by Republic, if and when commenced. However, any adverse decision in resolving this matter could have an adverse effect on the Company. The amount of any loss cannot be reasonably estimated. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (a) Income tax expense (benefit) December 31, 2019 $’000 December 31, 2018 $’000 Current tax expense (benefit) Current period 1,119 815 Deferred tax expense (benefit) Current period (1,009 ) (3,255 ) Prior period tax adjustments 188 - Total income tax expense (benefit) $ 298 $ (2,440 ) 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: December 31, 2019 $’000 December 31, 2018 $’000 Income (loss) before tax (9,377 ) $ (10,286 ) Statutory income tax rate 25 % 25 % Expected income tax (benefit) $ (2,344 ) $ (2,572 ) Increase (decrease) resulting from: Non-taxable items (242 ) (200 ) Change in valuation allowance 1,335 411 Tax rate changes, tax rate differences, and changes in tax legislation 1,361 (287 ) Prior period tax adjustments 188 208 Total income tax expense (benefit) $ 298 $ (2,440 ) (b) Components of deferred tax assets and liabilities December 31, 2019 $’000 December 31, 2018 $’000 Deferred tax assets are attributable to the following: Property, Plant and equipment 982 1,343 Loss carryforwards 15,998 13,943 Other 1,587 770 Valuation allowance (13,613 ) (12,278 ) Deferred tax assets $ 4,954 $ 3,778 Set-off of tax (355 ) - Net deferred tax asset 4,599 3,778 December 31, 2019 $’000 December 31, 2018 $’000 Deferred tax liabilities are attributable to the following: Mineral properties (2,668 ) - Long-term debt (322 ) - Other (58 ) - Deferred tax liabilities $ (3,048 ) $ - Set-off of tax 355 - Net deferred tax liability (2,693 ) (c) Loss carryforwards The Company and its subsidiaries have tax loss carryforwards within the jurisdictions in which they operate. These loss carryforwards expire between 2023 and 2039: $’000 2021 81 2022 3 2023 1,073 2024 and after 16,597 Total unused non-capital losses $ 17,754 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | COVID-19 Since December 31, 2019, the outbreak of the novel coronavirus, specifically identified as “COVID-19”, has resulted in governments worldwide enacting emergency measures to combat the spread of the virus. These measures, which include the implementation of travel bans, self-imposed quarantine periods and social distancing, have caused material disruption to businesses globally resulting in an economic slowdown. Global equity markets have experienced significant volatility and weakness. Governments and central banks have reacted with significant monetary and fiscal interventions designed to stabilize economic conditions. The duration and impact of the COVID-19 outbreak is unknown at this time, as is the efficacy of the government and central bank interventions. The Company has determined that these events are non-adjusting subsequent events. Accordingly, the financial position and results of operations as of and for the year ended December 31, 2019 have not been adjusted to reflect their impact. The duration and impact of COVID-19 pandemic, as well as the effectiveness of government and central bank responses, remains unclear at this time but it could have a material impact on the Company’s future operations and performance. It is not possible to reliably estimate the duration and severity of these consequences, as well as their impact on the financial position and results of the Company for future periods. With the lockdown measures implemented by the government of Argentina, the Company was forced to pause its activities for approximately 30 days. On April 2, 2020, the government declared mining as an essential service and the Company was able to resume operations at most of the sites. Subsidiaries Reorganization Following the year end Patagonia Gold Corp. (“Patagonia” or the “Company”) has initiated a corporate reorganization (the “Reorganization”), which will result in Patagonia Gold SA (“PGSA”) and Cerro Cazador SA (“CCSA”) merging and continuing as one legal entity. The Reorganization will facilitate the development of the Cap-Oeste gold / silver underground project (“Cap-Oeste”), with Cap-Oeste and the Martha processing plant being held by the same legal entity, PGSA. It is also expected to facilitate the development of an exploration program for the La Josefina and La Valenciana gold / silver projects. The Reorganization is expected to be completed by the end of the second quarter 2020 and be effective as of January 1, 2020. In connection with this Reorganization, the Company also renegotiated the agreement between PGSA and the Provincial State owned Mining Company, Fomento Minero de Santa Cruz Sociedad del Estado (“Fomicruz”), pursuant to which Fomicruz held a 10% interest in PGSA, and the farm-in agreement between CCSA and Fomicruz regarding the La Josefina and the La Valenciana properties. Accordingly, Fomicruz agreed to reduce its interest in PGSA to 5% and to hold a 2% royalty on the properties it contributed to PGSA, with the exception of the La Josefina and La Valenciana properties, where Fomicruz will retain a 5% royalty. Lines of credit renewal Subsequent to December 31, 2019, the Company renewed the operating lines of credit at an interest rate of 1.8% and mature on January 31, 2021 (Note 15). Stock Options On August 14, 2020, the Company issued an aggregate of 9,600,000 stock options to the Company’s directors, officers and certain members of senior management under the Company’s stock option plan. All of the options are exercisable for a period of five years at a price of CAD $0.16. The options vest in three (3) separate tranches on the first, second and third anniversary on the option grant date. Debt Conversion On October 30, 2020, the Company entered into an agreement with director Tim Hunt and his related parties to convert an aggregate of $10,000 of outstanding debt into 44,040,277 common shares of the Company at a price per share that is equal to CAD $0.30. The converted debt includes $4,822 of principal and accrued interest and $5,178 in accounts payable in respect of interest, rent and administration expenses. The balance of $1,458 owing to Tim Hunt is expected to be settled in full by December 10, 2020 by a cash payment of $720 plus 7% accrued interest. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Measurement | The consolidated financial statements have been prepared under the historical cost convention, except for the revaluation of certain financial assets and financial liabilities to fair value. |
Consolidation | The Company's consolidated financial statements consolidate the accounts of the Company and its subsidiaries. All intercompany transactions, balances and unrealized gains or losses from intercompany transactions are eliminated on consolidation. |
Foreign Currency Translation | Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the rates of exchange prevailing at the reporting date. Non-monetary assets and liabilities are translated at the exchange rate prevailing at the transaction date. Revenues and expenses are translated at average exchange rates throughout the reporting period. Gains and losses on translation of foreign currencies are included in the consolidated statement of operations. The Company’s functional currency is the Canadian dollar. The Company’s subsidiaries have functional currencies in Canadian dollars (“CAD”), US dollars (“US”), Chilean Peso (“CH$”) and Great Britain Pound (“GBP”). These consolidated financial statements are translated to their US dollar equivalents using the current rate method. Under this method, the statements of operations and comprehensive loss and cash flows for each period have been translated using the average exchange rates prevailing during each period. All assets and liabilities have been translated using the exchange rate prevailing at the balance sheet date. Translation adjustments are recorded as income or losses in other comprehensive income or loss. 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 the accompanying consolidated statement of operations and comprehensive income/(loss). |
Financial Instruments | The Company measures the fair value of financial assets and liabilities based on US GAAP guidance, which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. The Company classifies financial assets and liabilities as held-for-trading, available-for-sale, held-to-maturity, loans and receivables or other financial liabilities depending on their nature. Financial assets and financial liabilities are recognized at fair value on their initial recognition, except for those arising from certain related party transactions, which are accounted for at the transferor's carrying amount or exchange amount. Financial assets and liabilities classified as held-for-trading are measured at fair value, with gains and losses recognized in net income or loss. Financial assets classified as held-to-maturity, loans and receivables, and financial liabilities other than those classified as held-for-trading are measured at amortized cost, using the effective interest method of amortization. Financial assets classified as available-for-sale are measured at fair value, with unrealized gains and losses being recognized as other comprehensive income or loss until realized, or if an unrealized loss is considered other than temporary, the unrealized loss is recorded in income or loss. See Note 23 to the Consolidated Financial Statements for fair value disclosures. |
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 | 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. 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 | 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 statement of operations and comprehensive income/(loss). The Company charges to the consolidated statement of operations and comprehensive income/(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 | 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 statement of operations and comprehensive income/(loss). |
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 these consolidated statement of operations and comprehensive income/(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. Depreciation of plant, other than Mina Martha, is based on a unit-of-production method over the estimated period of economically recoverable reserves. Depreciation begins once the asset is in the state intended for use by management. 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 these consolidated statement of operations and comprehensive income/(loss). |
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. Asset impairment is considered to exist if the total estimated undiscounted pre-tax future cash flows are less than the carrying amount of the asset. In estimating future cash flows, assets are grouped at the lowest level for which there is identifiable cash flows that are largely independent of future cash flows from other asset groups. An impairment loss is measured by discounted estimated future cash flows and recorded by reducing the asset's carrying amount to fair value. 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 still lower level of geological confidence and economic modeling. During the year ended December 31, 2019, the Company performed an analysis of the San José Project in Uruguay and determined that the long-lived asset for the San José Project was impaired. A non-cash impairment charge of $1,996 was recorded and allocated to mineral properties (see Note 8). |
Asset Retirement Obligations | Upon retirement of the Company’s mineral properties, retirement costs will be incurred by the Company. Estimates of these costs are subject to uncertainty associated with the method, timing and extent of future decommissioning activities. The Company records the fair value of an asset retirement obligation as a liability in the period in which it incurs a legal or constructive obligation associated with the retirement of tangible long-lived assets that result from the acquisition, construction, development, and/or normal use of the long-lived assets. The Company also records a corresponding asset, which is depleted over the life of the asset. Subsequent to the initial measurement of the asset retirement obligation, the obligation is adjusted at the end of each period to reflect the passage of time (accretion expense) and changes in the estimated future cash flows underlying the obligation (asset retirement cost). The Argentine mining regulations require that mine properties to 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. The Company has adopted Asset Retirement and Environmental Obligations ASC 410 |
Income Taxes | The Company accounts for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under the asset and liability method, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recognized if it is more likely than not that some portion or all of the deferred tax asset will not be recognized. 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 is 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 financial statements. |
Share-based Payments | The Company offers a share option plan for its directors, officers, employees and consultants. ASC 718 “Compensation – Stock Compensation” Measurement of share-based payment transactions with non-employees is based on the fair value of whichever is more reliably measurable: (a) the goods or services received; or (b) the equity instruments issued. The fair value of the share-based payment transaction is determined at the earlier of the performance commitment date or performance completion date. |
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 | The Company recognizes sales revenue in accordance with ASC 606 when it has satisfied the following criteria: identifiable contract, identifiable performance obligation, determinable transaction price, allocating the transaction price and satisfying performance obligations. 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 | In accordance with ASC 280, 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. |
Highly Inflationary Economy | The Company has operations in Argentina through its subsidiaries as disclosed in Note 1 and their functional currency has historically been the Argentine Peso. The Company monitors inflation rates in the countries it operates under ASC 830-10-45-12. An economy must be classified as highly inflationary when the cumulative three-year inflation rate exceeds 100%. During the year ended December 31, 2018, the economic environment in Argentina experienced the acceleration of multiple local inflation indices, a three-year cumulative inflation rate of the local Argentine wholesale price index exceeding 100% in July 1, 2018, and the significant devaluation of the Argentine Peso. As such, the Company has considered Argentina to be a highly inflationary economy. In accordance with ASC 830, beginning on July 1 the functional currency of the Company’s Argentinian subsidiaries was changed to the Company’s reporting currency ($USD). The following table presents the application ASC 830-10 for a highly inflationary economy for the conversion of account balances: Non-monetary Assets and Liabilities Monetary assets and Liabilities Equity Translated at the balance of prior period end Translated at the balance of prior period end Remeasured using historical exchange rate |
Business Combinations | The Company accounts for business combinations under the acquisition method of accounting in accordance with ASC 805, Business Combinations, by recognizing identifiable tangible and intangible assets acquired, liabilities assumed, and non-controlling interests in the acquired business at their fair values. The excess of the costs of the acquired business over the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed is recorded as Goodwill. Acquisition related costs are expensed as incurred. |
Nature of Business (Tables)
Nature of Business (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Subsidiaries | Corporation Incorporation Percentage ownership Functional currency Business purpose Patagonia Gold S.A. (PGSA) Argentina 90 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 Cerro Cazador S.A. Argentina 100 US$ Exploration Stage Ganadera Patagonia S.R.L. Argentina 100 US$ Land Holding 1494716 Alberta Ltd. Canada 100 CAD$ Nominee Shareholder Hunt Gold USA LLC USA 100 US$ Management Company |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | December 31, 2019 December 31, 2018 $’000 $’000 Gold held on carbon $ 1,422 $ 1,571 Silver and gold concentrate 157 - Material stockpiles - 2,996 Materials and supplies 1,768 1,719 $ 3,347 $ 6,286 |
Mineral Properties (Tables)
Mineral Properties (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Mineral Properties, Net [Abstract] | |
Mineral properties | Mining assets Surface rights acquired Total $’000 $’000 $’000 Cost Balance at January 1, 2018 $ 1,280 $ 847 $ 2,127 Additions 500 198 698 Exchange differences - (300 ) (300 ) Balance December 31, 2018 $ 1,780 $ 745 $ 2,525 Reverse acquisition (Note 26) 6,830 1,035 7,865 Additions 216 - 216 Impairment (1,996 ) - (1,996 ) Balance December 31, 2019 $ 6,830 $ 1,780 $ 8,610 |
Asset Retirement Obligation (Ta
Asset Retirement Obligation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset retirement obligation | December 31, 2019 December 31, 2018 $’000 $’000 Asset retirement obligation at beginning of year $ 552 $ 686 Reverse acquisition (note 26) 739 - Change in estimate 1,342 (712 ) Accretion expense 179 578 Asset retirement obligation at end of year $ 2,812 $ 552 |
Mining Rights (Tables)
Mining Rights (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Mining Rights | |
Mining rights | Fomicruz Agreement Minera Aquiline Argentina Total $’000 $’000 $’000 Balance at January 1, 2018 $ 3,388 $ - $ 3,388 Additions - 14,612 14,612 Amortization (100 ) - (100 ) Exchange differences - (1,425 ) (1,425 ) Balance December 31, 2018 $ 3,288 $ 13,187 $ 16,475 Amortization (100 ) - (100 ) Exchange differences - 622 622 Balance December 31, 2019 $ 3,188 $ 13,809 $ 16,997 |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, plant, and equipment | Plant Buildings Vehicles and Equipment Improvements and advances Total $’000 $’000 $’000 $’000 $’000 Cost Balance at December 31, 2017 $ 8,242 $ 356 $ 15,234 $ 1,065 $ 24,897 Additions 576 - 3,263 224 4,063 Disposals - - (56 ) - (56 ) Transfers - - 344 (344 ) - Foreign exchange difference (2,917 ) (126 ) (5,327 ) (379 ) (8,749 ) Balance at December 31, 2018 $ 5,901 $ 230 $ 13,458 $ 566 $ 20,155 Reverse acquisition (Note 26) 1,732 69 409 - 2,210 Additions 203 - 244 330 777 Disposals - - (326 ) (51 ) (377 ) Transfers - - 106 (106 ) - Balance at December 31, 2019 $ 7,836 $ 299 $ 13,891 $ 739 $ 22,765 Accumulated depreciation Balance at December 31, 2017 $ 4,505 $ 45 $ 3,960 $ - $ 8,510 Disposals - - (41 ) - (41 ) Depreciation for the year 2,849 4 1,659 - 4,512 Impairment - - 690 - 690 Foreign exchange difference (1,593 ) (16 ) (1,385 ) - (2,994 ) Balance at December 31, 2018 $ 5,761 $ 33 $ 4,883 $ - $ 10,677 Disposals - - (264 ) - (264 ) Depreciation for the year 144 9 1,691 - 1,844 Balance at December 31, 2019 $ 5,905 $ 42 $ 6,310 $ - $ 12,257 Net book value At December 31, 2018 $ 140 $ 197 $ 8,575 $ 566 $ 9,478 At December 31, 2019 $ 1,931 $ 257 $ 7,581 $ 739 $ 10,508 |
Receivables (Tables)
Receivables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |
Receivables | December 31, December 31, 2019 2018 $’000 $’000 Receivable from sale $ 150 $ - Value added tax ("VAT") recoverable 880 3,843 Other receivables 486 1,080 Total receivables $ 1,516 $ 4,923 |
Other Receivables (Tables)
Other Receivables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Other receivables | December 31, December 31, 2019 2018 $’000 $’000 Value added tax ("VAT") recoverable $ 1,226 $ 1,097 Other receivables 2,588 1,975 Total Other Receivables $ 3,814 $ 3,072 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Accounts payable and accrued liabilities | December 31, December 31, 2019 2018 $’000 $’000 Trade accounts payable and accrued liabilities $ 5,102 $ 4,695 Income tax - 462 Other accruals 890 1,524 Accounts payable to related parties (note 21) 6,717 246 Total $ 12,709 $ 6,927 |
Loan Payable and Current Port_2
Loan Payable and Current Portion of Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Loans Payable [Abstract] | |
Loan payable and current portion of long-term debt | December 31, December 31, 2019 2018 $’000 $’000 Current portion of long-term debt (note 18) $ 200 $ 37 Leases payable 134 393 Loans payable - 9,672 Total $ 334 $ 10,102 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Long-term Debt, Unclassified [Abstract] | |
Long-term debt | December 31, December 31, 2019 2018 $’000 $’000 Loan to related party secured by a letter of guarantee from the Company, at 5% interest per annum, due 2021 (note 21) $ 7,908 $ - Loan to related party secured by assets of the Company payable 5.75% interest per annum, due 2022 512 711 Acquired in reverse acquisition. Unsecured loan payable to related party at 8% interest per annum, due 2022 (note 21 and 26) 990 - Acquired in reverse acquisition. Unsecured loan payable to related party at 8% interest per annum, due 2021 (note 21 and 26) 826 - Acquired in reverse acquisition. Unsecured loan payable to related party at 7% interest per annum, due 2021 (note 21 and 26) 1,038 - Accrued interest on debt 946 - $ 12,220 $ 711 Less current portion (200 ) (37 ) $ 12,020 $ 674 |
Principal payments on long-term debts | Year ending December 31, 2020 200 2021 9,546 2022 2,474 |
Net Income (Loss) per Share (Ta
Net Income (Loss) per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings (loss) per share | December 31, December 31, 2019 2018 Net income (loss) ($’000) $ (9,675 ) $ (7,846 ) Weighted average number of common shares outstanding – basic and diluted 282,306,312 254,387,482 Net income (loss) per share $ (0.03 ) $ (0.03 ) |
Capital Stock (Tables)
Capital Stock (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Common shares | Common Shares Year ended Year ended December 31, 2019 December 31, 2018 Number Amount Number * Amount $’000 $’000 Balance, beginning of year 254,355,192 $ 301 25,436,715,471 $ 31,868 Share reorganization - - (25,182,360,279 ) (31,567 ) Share issued in reverse acquisition (note 26) 63,588,798 2,287 - - Balance, end of year 317,943,990 $ 2,588 254,355,192 $ 301 *The comparative share capital amounts for the year ended December 31, 2018 have been retroactively adjusted to reflect the legal capital of the Patagonia Gold Corp. (accounting acquiree). These amounts have been multiplied by 10.76 to reflect the shares issued to Patagonia Gold PLC in the reverse acquisition transaction. |
Stock option activity | December 31, 2019 December 31, 2018 Number of options Weighted Average Price (CAD) Number of options Weighted Average Price (CAD) Balance, beginning of year 1,706,830 $ 13.896 171,808,000 $ 0.139 After Share reorganization - $ - 1,718,080 $ 13.903 Granted 7,650,000 $ 0.065 - $ - Expiration of stock options (1,706,830 ) $ 13.896 (11,250 ) $ 13.886 Balance, end of year 7,650,000 $ 0.065 1,706,830 $ 13.896 |
Stock options by exercise price | Range of Exercise prices (CAD) Number outstanding Weighted average life (years) Weighted average exercise price (CAD) Number exercisable on December 31, 2018 Stock options $ 0.065 7,650,000 4.74 $ 0.065 7,650,000 |
Fair value assumptions | Year ended December 31, 2019 Discount rate 1.46% Expected volatility 253.14% Expected life (years) 5 Expected dividend yield 0% Forfeiture rate 0% Stock price CAD$ 0.06 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related party transactions | 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 Year ended December 31 As at December 31, 2019 and December 31, 2018 $’000 $’000 $’000 $’000 $’000 $’000 A company controlled by a director 1 2019 - - - - 6,374 - - admin, office, and interest expenses 2018 - - - - - - A company controlled by a director 2019 346 7,908 33 - 227 8,163 - salaries and wages 2018 78 - - - 150 - Directors 2019 337 - 317 - 116 - - salaries and wages 2018 293 - - - 96 - Director 1 2019 - 347 - - - 3,545 -loans 2018 - - - - - - 1 Balances owed to related parties were acquired as part of the reverse acquisition (Note 18 and 26) |
Administrative Expenses (Tables
Administrative Expenses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Selling, General and Administrative Expense [Abstract] | |
Administrative expenses | December 31, 2019 December 31, 2018 $’000 $’000 General and administrative $ 4,183 $ 3,466 Argentina statutory taxes 641 515 Professional fees 1,566 862 Operating leases 130 86 Directors’ remuneration 259 251 Gain on sale of property, plant and equipment (83 ) (42 ) Depreciation of property, plant and equipment 1,844 4,512 Depreciation allocated to inventory (1,644 ) (4,447 ) Amortization of mining rights 100 100 Consulting fees 18 26 Net impairment of assets - 689 Transaction taxes expenses (income) 248 (1 ) Total $ 7,262 $ 6,017 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments, Owned, at Fair Value [Abstract] | |
Financial instruments | December 31, 2019 December 31, 2018 Carrying amount Fair value Carrying amount Fair value $’000 $’000 $’000 $’000 Financial Assets Amortized cost Cash (Level 1) 685 685 660 660 Available for sale Other financial assets (Level 1) 334 334 11 11 Loans and receivables Receivables and other receivable ¹ 3,224 3,224 3,055 3,055 Financial Liabilities Amortized cost Bank indebtedness 14,989 14,989 12,381 12,381 Accounts payable and accrued liabilities 12,709 12,709 6,927 6,927 Loan payable and current portion of long-term debt 334 334 10,102 10,102 Long-term debt 13,026 12,020 674 674 ¹ Amounts exclude value added tax (“VAT”) recoverable of $880 and $3,843 as at December 31, 2019 and 2018 respectively. |
Non-controlling Interest (Table
Non-controlling Interest (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Noncontrolling Interest [Abstract] | |
Non-controlling interest | Amount $’000 Balance at December 31, 2017 $ 407 Share of 2018 operating income/(loss) (528 ) Balance at December 31, 2018 (121 ) Share of operating income/(loss) (122 ) Balance at December 31, 2019 $ (243 ) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment reporting | Lomada Project Cap- Oeste Project Calcatreu Project Martha and La Josefina Projects Argentina Uruguay and Chile UK North America Total $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Revenue $ 4,750 14,903 $ - $ 2,285 $ - $ - $ - $ 21,938 Cost of sales (3,879 ) (11,006 ) - (1,545 ) - - - (16,430 ) Gross profit $ 871 3,897 $ - $ 740 $ - $ - $ - $ 5,508 Operating expense Exploration expense $ - (227 ) $ (1,300 ) $ (300 ) $ (1,931 ) $ - $ - $ (3,758 ) Administrative expense - - (279 ) (871 ) (4,072 ) (1,433 ) (307 ) (6,962 ) Depreciation expense - - (18 ) (115 ) (67 ) (100 ) - (300 ) Impairment of mineral properties - - - - - (1,996 ) - (1,996 ) Share-based payments - - - - - (40 ) (87 ) (127 ) Interest expense - - - - (765 ) (782 ) (584 ) (2,131 ) Total operating expense $ - (227 ) $ (1,597 ) $ (1,286 ) $ (6,835 ) $ (4,351 ) $ (978 ) $ (15,274 ) Other income/(expense) Interest income $ - - $ 34 $ - $ 157 $ - $ - $ 191 Gain/(loss) on foreign exchange - - (11 ) (152 ) 628 (440 ) 352 377 Accretion expense (46 ) (39 ) - (94 ) - - - (179 ) Total other income/(expense) $ (46 ) (39 ) $ 23 $ (246 ) $ 785 $ (440 ) $ 352 $ 389 Income/(loss) – before income tax $ 825 3,631 $ (1,574 ) $ (792 ) $ (6,050 ) $ (4,791 ) $ (626 ) $ (9,377 ) Income tax/(benefit) - - (193 ) (866 ) 761 - - (298 ) Net income/(loss) $ 825 3,631 $ (1,767 ) $ (1,658 ) $ (5,289 ) $ (4,791 ) $ (626 ) $ (9,675 ) Lomada Project Cap- Oeste Project Calcatreu Project COSE Project Argentina Uruguay and Chile UK North America Total $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Revenue $ - $ 47,441 $ - $ - $ - $ - $ - $ 47,441 Cost of sales - (36,361 ) - - - - - (36,361 ) Gross profit $ - $ 11,080 $ - $ - $ - $ - $ - $ 11,080 Operating expense Other operating income $ - $ - $ - $ 1,505 $ - $ - $ - $ 1,505 Exploration expense - - (1,720 ) - (82 ) - - (1,802 ) Administrative expense - - (61 ) - (4,706 ) (1,005 ) (80 ) (5,852 ) Depreciation expense - - (105 ) - (60 ) - - (165 ) Impairment of mineral properties - - - - - - - - Share-based payments - - - - - (190 ) - (190 ) Interest expense - - - - (1,275 ) (390 ) - (1,665 ) Total operating expense $ - $ - $ (1,886 ) $ 1,505 $ (6,123 ) $ (1,585 ) $ (80 ) $ (8,169 ) Other income/(expense) Interest income $ - $ - $ - $ - $ 142 $ - $ - $ 142 Gain/(loss) on foreign exchange - - (71 ) - (12,252 ) 1,026 (1,464 ) (12,761 ) Accretion expense - - - - (578 ) - - (578 ) Total other income/(expense) $ - $ - $ (71 ) $ - $ (12,688 ) $ 1,026 $ (1,464 ) $ (13,197 ) Income/(loss) – before income tax $ - $ 11,080 $ (1,957 ) $ 1,505 $ (18,811 ) $ (559 ) $ (1,544 ) $ (10,286 ) Income tax/(benefit) - - - - 2,440 - - 2,440 Net income/(loss) $ - $ 11,080 $ (1,957 ) $ 1,505 $ (16,371 ) $ (559 ) $ (1,544 ) $ (7,846 ) Total Assets Total liabilities December 31, December 31 2019 2018 2019 2018 $’000 $’000 $’000 $’000 Argentina – Cap-Oeste $ 9,116 $ 19,005 $ 2,629 $ 4,374 Argentina - Lomada 2,996 1,231 1,979 1,220 Argentina - Calcatreu 14,678 13,751 1,591 256 Argentina - Martha & La Josefina 12,106 - 5,475 - Argentina and Chile 11,263 11,270 3,875 13,532 United Kingdom 177 1,951 20,240 11,333 North America 4,453 - 9,824 - Total $ 54,789 $ 47,208 $ 45,613 $ 30,715 |
Reverse Acquisition (Tables)
Reverse Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Purchase price allocation | Amount $’000 Fair value of the Company’s shares (1) $ 2,287 Less net identifiable assets (liabilities) of the Company Cash 60 Accounts receivable 1,183 Prepaid expenses 14 Inventory 906 Mineral properties 7,865 Property, plant and equipment 2,210 Goodwill 4,379 Performance bond 351 Accounts payable and accrued liabilities (8,725 ) Bank indebtedness (400 ) Loan payable and current portion of long-term debt (581 ) Long-term debt (2,062 ) Accrued interest on debt (550 ) Asset retirement obligation (739 ) Deferred tax liabilities (1,624 ) $ 2,287 (1) The fair value of 5,908,687 common shares issued to pre-reverse acquisition Hunt shareholders is $2,287 based on the fair value of $0.387 per common share (converted from GBP 0.310 closing stock price of Patagonia Gold PLC prior to the transaction on July 24, 2019). |
Pro forma information | Revenue Comprehensive Income (Loss) $’000 $’000 Actual results of Hunt from July 24, 2019 to December 31, 2019 $ 2,286 $ (1,650 ) 2019 combined results (had the reverse acquisition occurred on January 1, 2019) $ 23,067 $ (13,117 ) 2019 combined results (had the reverse acquisition occurred on January 1, 2018) $ 23,067 $ (11,606 ) 2018 combined results (had the reverse acquisition occurred on January 1, 2018) $ 51,402 $ (15,489 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income tax expense (benefit) | December 31, 2019 $’000 December 31, 2018 $’000 Current tax expense (benefit) Current period 1,119 815 Deferred tax expense (benefit) Current period (1,009 ) (3,255 ) Prior period tax adjustments 188 - Total income tax expense (benefit) $ 298 $ (2,440 ) 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: December 31, 2019 $’000 December 31, 2018 $’000 Income (loss) before tax (9,377 ) $ (10,286 ) Statutory income tax rate 25 % 25 % Expected income tax (benefit) $ (2,344 ) $ (2,572 ) Increase (decrease) resulting from: Non-taxable items (242 ) (200 ) Change in valuation allowance 1,335 411 Tax rate changes, tax rate differences, and changes in tax legislation 1,361 (287 ) Prior period tax adjustments 188 208 Total income tax expense (benefit) $ 298 $ (2,440 ) |
Deferred tax assets (liabilities) | December 31, 2019 $’000 December 31, 2018 $’000 Deferred tax assets are attributable to the following: Property, Plant and equipment 982 1,343 Loss carryforwards 15,998 13,943 Other 1,587 770 Valuation allowance (13,613 ) (12,278 ) Deferred tax assets $ 4,954 $ 3,778 Set-off of tax (355 ) - Net deferred tax asset 4,599 3,778 December 31, 2019 $’000 December 31, 2018 $’000 Deferred tax liabilities are attributable to the following: Mineral properties (2,668 ) - Long-term debt (322 ) - Other (58 ) - Deferred tax liabilities $ (3,048 ) $ - Set-off of tax 355 - Net deferred tax liability (2,693 ) |
Loss carryforwards | $’000 2021 81 2022 3 2023 1,073 2024 and after 16,597 Total unused non-capital losses $ 17,754 |
Nature of Business (Details)
Nature of Business (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Subsidiary 1 | |
Corporation | Patagonia Gold S.A. (PGSA) |
Incorporation | Argentina |
Percentage ownership | 90.00% |
Functional currency | US$ |
Business purpose | Production and Exploration Stage |
Subsidiary 2 | |
Corporation | Minera Minamalu S.A. |
Incorporation | Argentina |
Percentage ownership | 100.00% |
Functional currency | US$ |
Business purpose | Exploration Stage |
Subsidiary 3 | |
Corporation | Huemules S.A. |
Incorporation | Argentina |
Percentage ownership | 100.00% |
Functional currency | US$ |
Business purpose | Exploration Stage |
Subsidiary 4 | |
Corporation | Leleque Exploración S.A. |
Incorporation | Argentina |
Percentage ownership | 100.00% |
Functional currency | US$ |
Business purpose | Exploration Stage |
Subsidiary 5 | |
Corporation | Patagonia Gold Limited (formerly Patagonia Gold PLC) |
Incorporation | UK |
Percentage ownership | 100.00% |
Functional currency | GBP$ |
Business purpose | Holding |
Subsidiary 6 | |
Corporation | Minera Aquiline S.A.U. |
Incorporation | Argentina |
Percentage ownership | 100.00% |
Functional currency | US$ |
Business purpose | Exploration Stage |
Subsidiary 7 | |
Corporation | Patagonia Gold Canada Inc. |
Incorporation | Canada |
Percentage ownership | 100.00% |
Functional currency | CAD$ |
Business purpose | Holding |
Subsidiary 8 | |
Corporation | Patagonia Gold Chile S.C.M. |
Incorporation | Chile |
Percentage ownership | 100.00% |
Functional currency | CH$ |
Business purpose | Exploration Stage |
Subsidiary 9 | |
Corporation | Cerro Cazador S.A. |
Incorporation | Argentina |
Percentage ownership | 100.00% |
Functional currency | US$ |
Business purpose | Exploration Stage |
Subsidiary 10 | |
Corporation | Ganadera Patagonia S.R.L. |
Incorporation | Argentina |
Percentage ownership | 100.00% |
Functional currency | US$ |
Business purpose | Land Holding |
Subsidiary 11 | |
Corporation | 1494716 Alberta Ltd. |
Incorporation | Canada |
Percentage ownership | 100.00% |
Functional currency | CAD$ |
Business purpose | Nominee Shareholder |
Subsidiary 12 | |
Corporation | Hunt Gold USA LLC |
Incorporation | USA |
Percentage ownership | 100.00% |
Functional currency | US$ |
Business purpose | Management Company |
Going Concern (Details Narrativ
Going Concern (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Nov. 17, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Net loss | $ (9,675) | $ (7,846) | |
Working capital | $ (22,484) | ||
Accumulated deficit | $ (164,717) | $ (174,270) |
Significant Accounting Polici_3
Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | ||
Impairment of mineral properties | $ (1,996) | $ 0 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Nov. 17, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory | $ 3,347 | $ 6,286 | |
Gold Held on Carbon | |||
Inventory | $ 1,422 | 1,571 | |
Silver and Gold Concentrate | |||
Inventory | 157 | 0 | |
Material Stockpiles | |||
Inventory | 0 | 2,996 | |
Materials and Supplies | |||
Inventory | $ 1,768 | $ 1,719 |
Mineral Properties (Details)
Mineral Properties (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Mineral properties, beginning | $ 2,525 | $ 2,127 |
Reverse acquisition (Note 26) | 7,865 | |
Additions | 216 | 698 |
Exchange differences | (300) | |
Impairment | (1,996) | 0 |
Mineral properties, ending | 2,525 | |
Mining Assets | ||
Mineral properties, beginning | 1,780 | 1,280 |
Reverse acquisition (Note 26) | 6,830 | |
Additions | 216 | 500 |
Exchange differences | 0 | |
Impairment | (1,996) | |
Mineral properties, ending | 6,830 | 1,780 |
Surface Rights Acquired | ||
Mineral properties, beginning | 745 | 847 |
Reverse acquisition (Note 26) | 1,035 | |
Additions | 0 | 198 |
Exchange differences | (300) | |
Impairment | 0 | |
Mineral properties, ending | $ 1,780 | $ 745 |
Asset Retirement Obligation (De
Asset Retirement Obligation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Asset Retirement Obligation Disclosure [Abstract] | ||
Asset retirement obligation, beginning | $ 552 | $ 686 |
Reverse acquisition (Note 26) | 739 | 0 |
Change in estimate | 1,342 | (712) |
Accretion expense | $ 179 | 578 |
Asset retirement obligation, ending | $ 552 |
Mining Rights (Details)
Mining Rights (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Mining rights, beginning | $ 16,475 | $ 3,388 |
Additions | 14,612 | |
Amortization | (100) | (100) |
Exchange differences | 622 | (1,425) |
Mining rights, ending | 16,475 | |
Fomicruz Agreement | ||
Mining rights, beginning | 3,288 | 3,388 |
Additions | 0 | |
Amortization | (100) | (100) |
Exchange differences | 0 | 0 |
Mining rights, ending | 3,188 | 3,288 |
Minera Aquiline Argentina | ||
Mining rights, beginning | 13,187 | 0 |
Additions | 14,612 | |
Amortization | 0 | 0 |
Exchange differences | 622 | (1,425) |
Mining rights, ending | $ 13,809 | $ 13,187 |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Nov. 17, 2020 | |
Property, plant, and equipment, cost, beginning | $ 20,155 | $ 24,897 | |
Reverse acquisition (Note 26) | 2,210 | ||
Additions | 777 | 4,063 | |
Disposals | (377) | (56) | |
Transfers | 0 | 0 | |
Foreign exchange difference | (8,749) | ||
Property, plant, and equipment, cost, ending | 20,155 | ||
Accumulated depreciation, beginning | 10,677 | 8,510 | |
Disposals | (264) | (41) | |
Depreciation | 1,844 | 4,512 | |
Impairment | 690 | ||
Foreign exchange difference | (2,994) | ||
Accumulated depreciation, ending | 10,677 | ||
Net book value | 9,478 | $ 10,508 | |
Plant | |||
Property, plant, and equipment, cost, beginning | 5,901 | 8,242 | |
Reverse acquisition (Note 26) | 1,732 | ||
Additions | 203 | 576 | |
Disposals | 0 | 0 | |
Transfers | 0 | 0 | |
Foreign exchange difference | (2,917) | ||
Property, plant, and equipment, cost, ending | 7,836 | 5,901 | |
Accumulated depreciation, beginning | 5,761 | 4,505 | |
Disposals | 0 | 0 | |
Depreciation | 144 | 2,849 | |
Impairment | 0 | ||
Foreign exchange difference | (1,593) | ||
Accumulated depreciation, ending | 5,905 | 5,761 | |
Net book value | 1,931 | 140 | |
Buildings | |||
Property, plant, and equipment, cost, beginning | 230 | 356 | |
Reverse acquisition (Note 26) | 69 | ||
Additions | 0 | 0 | |
Disposals | 0 | 0 | |
Transfers | 0 | 0 | |
Foreign exchange difference | (126) | ||
Property, plant, and equipment, cost, ending | 299 | 230 | |
Accumulated depreciation, beginning | 33 | 45 | |
Disposals | 0 | 0 | |
Depreciation | 9 | 4 | |
Impairment | 0 | ||
Foreign exchange difference | (16) | ||
Accumulated depreciation, ending | 42 | 33 | |
Net book value | 257 | 197 | |
Vehicles and Equipment | |||
Property, plant, and equipment, cost, beginning | 13,458 | 15,234 | |
Reverse acquisition (Note 26) | 409 | ||
Additions | 244 | 3,263 | |
Disposals | (326) | (56) | |
Transfers | 106 | 344 | |
Foreign exchange difference | (5,327) | ||
Property, plant, and equipment, cost, ending | 13,891 | 13,458 | |
Accumulated depreciation, beginning | 4,883 | 3,960 | |
Disposals | (264) | (41) | |
Depreciation | 1,691 | 1,659 | |
Impairment | 690 | ||
Foreign exchange difference | (1,385) | ||
Accumulated depreciation, ending | 6,310 | 4,883 | |
Net book value | 7,581 | 8,575 | |
Improvements and Advances | |||
Property, plant, and equipment, cost, beginning | 566 | 1,065 | |
Reverse acquisition (Note 26) | 0 | ||
Additions | 330 | 224 | |
Disposals | (51) | 0 | |
Transfers | (106) | (344) | |
Foreign exchange difference | (379) | ||
Property, plant, and equipment, cost, ending | 739 | 566 | |
Accumulated depreciation, beginning | 0 | 0 | |
Disposals | 0 | 0 | |
Depreciation | 0 | 0 | |
Impairment | 0 | ||
Foreign exchange difference | 0 | ||
Accumulated depreciation, ending | 0 | 0 | |
Net book value | $ 739 | $ 566 |
Receivables (Details)
Receivables (Details) - USD ($) $ in Thousands | Nov. 17, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Receivables | $ 1,516 | $ 4,923 | |
Receivable from Sale | |||
Receivables | $ 150 | 0 | |
Value Added Tax ("VAT") Recoverable | |||
Receivables | 880 | 3,843 | |
Other Receivables | |||
Receivables | $ 486 | $ 1,080 |
Other Receivables (Details)
Other Receivables (Details) - USD ($) $ in Thousands | Nov. 17, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Other receivables | $ 3,814 | $ 3,072 | |
Value Added Tax ("VAT") Recoverable | |||
Other receivables | $ 1,226 | 1,097 | |
Other Receivables | |||
Other receivables | $ 2,588 | $ 1,975 |
Bank Indebtedness (Details Narr
Bank Indebtedness (Details Narrative) - USD ($) $ in Thousands | Nov. 17, 2020 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
Bank indebtedness | $ 14,989 | $ 12,381 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Thousands | Nov. 17, 2020 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Trade accounts payable and accrued liabilities | $ 5,102 | $ 4,695 |
Income tax | 0 | 462 |
Other accruals | 890 | 1,524 |
Accounts payables due to related parties (Note 21) | 6,717 | 246 |
Total | $ 12,709 | $ 6,927 |
Loan Payable and Current Port_3
Loan Payable and Current Portion of Long-term Debt (Details) - USD ($) $ in Thousands | Nov. 17, 2020 | Dec. 31, 2018 |
Loans Payable [Abstract] | ||
Current portion of long-term debt (Note 18) | $ 200 | $ 37 |
Leases payable | 134 | 393 |
Loans payable | 0 | 9,672 |
Total | $ 334 | $ 10,102 |
Long-term Debt (Details)
Long-term Debt (Details) - USD ($) $ in Thousands | Nov. 17, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Accrued interest on debt | $ 946 | $ 0 | |
Long-term debt | 12,220 | 711 | |
Less current portion | (200) | (37) | |
Long-term debt, noncurrent | $ 12,020 | 674 | |
Long-term Debt 1 | |||
Long-term debt, gross | $ 7,908 | 0 | |
Long-term Debt 2 | |||
Long-term debt, gross | 512 | 711 | |
Long-term Debt 3 | |||
Long-term debt, gross | 990 | 0 | |
Long-term Debt 4 | |||
Long-term debt, gross | 826 | 0 | |
Long-term Debt 5 | |||
Long-term debt, gross | $ 1,038 | $ 0 |
Long-term Debt (Details 1)
Long-term Debt (Details 1) $ in Thousands | Nov. 17, 2020USD ($) |
Long-term Debt, Unclassified [Abstract] | |
2020 | $ 200 |
2021 | 9,546 |
2022 | $ 2,474 |
Net Income (Loss) per Share (De
Net Income (Loss) per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Net income (loss) | $ (9,675) | $ (7,846) |
Weighted average shares outstanding - basic and diluted | 282,306,312 | 254,387,482 |
Net income (loss) per share | $ (0.03) | $ (0.03) |
Capital Stock (Details)
Capital Stock (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | |||
Common stock, value, beginning | $ 301 | |||
Share reorganization, value | $ 0 | |||
Shares issued in reverse acquisition (Note 26), value | $ 2,287 | |||
Common stock, value, ending | $ 301 | |||
Capital Stock | ||||
Common stock, shares, beginning | [1] | 254,355,192 | 25,436,715,471 | |
Common stock, value, beginning | $ 301 | $ 31,868 | ||
Share reorganization, shares | 0 | (25,182,360,279) | [1] | |
Share reorganization, value | $ 0 | $ (31,567) | ||
Shares issued in reverse acquisition (Note 26), shares | 63,588,798 | 0 | [1] | |
Shares issued in reverse acquisition (Note 26), value | $ 2,287 | $ 0 | ||
Common stock, shares, ending | 317,943,990 | 254,355,192 | [1] | |
Common stock, value, ending | $ 2,588 | $ 301 | ||
[1] | The comparative share capital amounts for the year ended December 31, 2018 have been retroactively adjusted to reflect the legal capital of the Patagonia Gold Corp. (accounting acquiree). These amounts have been multiplied by 10.76 to reflect the shares issued to Patagonia Gold PLC in the reverse acquisition transaction. |
Capital Stock (Details 1)
Capital Stock (Details 1) - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | ||
Number of options outstanding, beginning | 1,706,830 | 171,808,000 |
After share reorganization | 0 | 1,718,080 |
Granted | 7,650,000 | 0 |
Expiration of stock options | (1,706,830) | (11,250) |
Number of options outstanding, ending | 1,706,830 | |
Weighted average exercise price outstanding, beginning | $ 13.896 | $ .139 |
After share reorganization | .000 | 13.903 |
Granted | .065 | .000 |
Expiration of stock options | $ 13.896 | 13.886 |
Weighted average exercise price outstanding, ending | $ 13.896 |
Capital Stock (Details 2)
Capital Stock (Details 2) - $ / shares | 12 Months Ended | |||
Dec. 31, 2019 | Nov. 17, 2020 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | ||||
Range of exercise prices | CAD$0.065 | |||
Number oustanding | 7,650,000 | 1,706,830 | 171,808,000 | |
Weighted average life (years) | 4 years 8 months 27 days | |||
Weighted average exercise price | $ .065 | $ 13.896 | $ .139 | |
Number exercisable | 7,650,000 |
Capital Stock (Details 3)
Capital Stock (Details 3) - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Nov. 17, 2020 | |
Stockholders' Equity Note [Abstract] | ||
Discount rate | 1.46% | |
Expected volatility | 253.14% | |
Expected life | 5 years | |
Expected dividend yield | 0.00% | |
Forfeiture rate | 0.00% | |
Stock price | $ .06 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Loans or advances | $ 8,515 | $ 0 | |
A Company Controlled by a Director (1) | Admin, Office, and Interest Expenses | |||
Remuneration, fees or interest expense | [1] | 0 | 0 |
Loans or advances | [1] | 0 | 0 |
Remuneration, fees, or interest payments | [1] | 0 | 0 |
Loan payments | [1] | 0 | 0 |
Included in accounts payable | [1] | 6,374 | 0 |
Included in loan payable and long-term debt | [1] | 0 | 0 |
A Company Controlled by a Director (2) | Admin, Office, and Interest Expenses | |||
Remuneration, fees or interest expense | 346 | 78 | |
Loans or advances | 7,908 | 0 | |
Remuneration, fees, or interest payments | 33 | 0 | |
Loan payments | 0 | 0 | |
Included in accounts payable | 227 | 150 | |
Included in loan payable and long-term debt | 8,163 | 0 | |
Directors | Salaries and Wages | |||
Remuneration, fees or interest expense | 337 | 293 | |
Loans or advances | 0 | 0 | |
Remuneration, fees, or interest payments | 317 | 0 | |
Loan payments | 0 | 0 | |
Included in accounts payable | 116 | 96 | |
Included in loan payable and long-term debt | 0 | 0 | |
Directors | Loans | |||
Remuneration, fees or interest expense | 0 | 0 | |
Loans or advances | 347 | 0 | |
Remuneration, fees, or interest payments | 0 | 0 | |
Loan payments | 0 | 0 | |
Included in accounts payable | 0 | 0 | |
Included in loan payable and long-term debt | $ 3,545 | $ 0 | |
[1] | Balances owed to related parties were acquired as part of the reverse acquisition (Note 18 and 26). |
Administrative Expenses (Detail
Administrative Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Administrative expenses | $ 7,262 | $ 6,017 |
General and Administrative | ||
Administrative expenses | 4,183 | 3,466 |
Argentina Statutory Taxes | ||
Administrative expenses | 641 | 515 |
Professional Fees | ||
Administrative expenses | 1,566 | 862 |
Operating Leases | ||
Administrative expenses | 130 | 86 |
Directors' Remuneration | ||
Administrative expenses | 259 | 251 |
Gain on Sale of Property, Plant and Equipment | ||
Administrative expenses | (83) | (42) |
Depreciation of Property, Plant and Equipment | ||
Administrative expenses | 1,844 | 4,512 |
Depreciation Allocated to Inventory | ||
Administrative expenses | (1,644) | (4,447) |
Amortization of Mining Rights | ||
Administrative expenses | 100 | 100 |
Consulting Fees | ||
Administrative expenses | 18 | 26 |
Net Impairment of Assets | ||
Administrative expenses | 0 | 689 |
Transaction Taxes Expenses (Income) | ||
Administrative expenses | $ 248 | $ (1) |
Financial Instruments (Details)
Financial Instruments (Details) - USD ($) $ in Thousands | Nov. 17, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Other financial assets | $ 334 | $ 11 | ||
Bank indebtedness | 14,989 | 12,381 | ||
Accounts payable and accrued liabilities | 12,709 | 6,927 | ||
Loan payable and current portion of long-term debt | $ 334 | 10,102 | ||
Fair Value | ||||
Cash | $ 685 | 660 | ||
Other financial assets | 334 | 11 | ||
Receivables and other receivables | [1] | 3,224 | 3,055 | |
Bank indebtedness | 14,989 | 12,381 | ||
Accounts payable and accrued liabilities | 12,709 | 6,927 | ||
Loan payable and current portion of long-term debt | 334 | 10,102 | ||
Long-term debt | 12,020 | 674 | ||
Carrying Amount | ||||
Cash | 685 | 660 | ||
Other financial assets | 334 | 11 | ||
Receivables and other receivables | [1] | 3,224 | 3,055 | |
Bank indebtedness | 14,989 | 12,381 | ||
Accounts payable and accrued liabilities | 12,709 | 6,927 | ||
Loan payable and current portion of long-term debt | 334 | 10,102 | ||
Long-term debt | $ 13,026 | $ 674 | ||
[1] | Amounts exclude value added tax ("VAT") recoverable of $880 and $3,843 as at December 31, 2019 and 2018 respectively. |
Financial Instruments (Details
Financial Instruments (Details Narrative) - USD ($) $ in Thousands | Nov. 17, 2020 | Dec. 31, 2018 |
Financial Instruments, Owned, at Fair Value [Abstract] | ||
Cash | $ 685 | $ 660 |
Uninsured cash | $ 0 | $ 0 |
Non-controlling Interest (Detai
Non-controlling Interest (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Noncontrolling Interest [Abstract] | ||
Non-controlling interest, beginning | $ (121) | $ 407 |
Share of operating income/(loss) | $ (122) | (528) |
Non-controlling interest, ending | $ (121) |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue | $ 21,938 | $ 47,441 |
Cost of sales | (16,430) | (36,361) |
Gross profit | 5,508 | 11,080 |
Operating Income (Expenses): | ||
Other operating income | 0 | 1,505 |
Exploration expenses | (3,758) | (1,802) |
Administrative expense | (6,962) | (5,852) |
Depreciation expense | (300) | (165) |
Impairment of mineral properties | (1,996) | 0 |
Share-based payments expense | (127) | (190) |
Interest expense | (2,131) | (1,665) |
Total operating expense | (15,274) | (8,169) |
Other Income/(Expenses) | ||
Interest income | 191 | 142 |
Gain/(loss) on foreign exchange | 377 | (12,761) |
Accretion expense | (179) | (578) |
Total other income/(expenses) | 389 | (13,197) |
Income (loss) - before income taxes | (9,377) | (10,286) |
Income tax benefit (expense) | (298) | 2,440 |
Net income (loss) | (9,675) | (7,846) |
Lomada Project | ||
Revenue | 4,750 | 0 |
Cost of sales | (3,879) | 0 |
Gross profit | 871 | 0 |
Operating Income (Expenses): | ||
Other operating income | 0 | |
Exploration expenses | 0 | 0 |
Administrative expense | 0 | 0 |
Depreciation expense | 0 | 0 |
Impairment of mineral properties | 0 | 0 |
Share-based payments expense | 0 | 0 |
Interest expense | 0 | 0 |
Total operating expense | 0 | 0 |
Other Income/(Expenses) | ||
Interest income | 0 | 0 |
Gain/(loss) on foreign exchange | 0 | 0 |
Accretion expense | (46) | 0 |
Total other income/(expenses) | (46) | 0 |
Income (loss) - before income taxes | 825 | 0 |
Income tax benefit (expense) | 0 | 0 |
Net income (loss) | 825 | 0 |
Cap-Oeste Project | ||
Revenue | 14,903 | 47,441 |
Cost of sales | (11,006) | (36,361) |
Gross profit | 3,897 | 11,080 |
Operating Income (Expenses): | ||
Other operating income | 0 | |
Exploration expenses | (227) | 0 |
Administrative expense | 0 | 0 |
Depreciation expense | 0 | 0 |
Impairment of mineral properties | 0 | 0 |
Share-based payments expense | 0 | 0 |
Interest expense | 0 | 0 |
Total operating expense | (227) | 0 |
Other Income/(Expenses) | ||
Interest income | 0 | 0 |
Gain/(loss) on foreign exchange | 0 | 0 |
Accretion expense | (39) | 0 |
Total other income/(expenses) | (39) | 0 |
Income (loss) - before income taxes | 3,631 | 11,080 |
Income tax benefit (expense) | 0 | 0 |
Net income (loss) | 3,631 | 11,080 |
Calcatreu Project | ||
Revenue | 0 | 0 |
Cost of sales | 0 | 0 |
Gross profit | 0 | 0 |
Operating Income (Expenses): | ||
Other operating income | 0 | |
Exploration expenses | (1,300) | (1,720) |
Administrative expense | (279) | (61) |
Depreciation expense | (18) | (105) |
Impairment of mineral properties | 0 | 0 |
Share-based payments expense | 0 | 0 |
Interest expense | 0 | 0 |
Total operating expense | (1,597) | (1,886) |
Other Income/(Expenses) | ||
Interest income | 34 | 0 |
Gain/(loss) on foreign exchange | (11) | (71) |
Accretion expense | 0 | 0 |
Total other income/(expenses) | 23 | (71) |
Income (loss) - before income taxes | (1,574) | (1,957) |
Income tax benefit (expense) | (193) | 0 |
Net income (loss) | (1,767) | (1,957) |
Martha and La Josefina Projects | ||
Revenue | 2,285 | |
Cost of sales | (1,545) | |
Gross profit | 740 | |
Operating Income (Expenses): | ||
Exploration expenses | (300) | |
Administrative expense | (871) | |
Depreciation expense | (115) | |
Impairment of mineral properties | 0 | |
Share-based payments expense | 0 | |
Interest expense | 0 | |
Total operating expense | (1,286) | |
Other Income/(Expenses) | ||
Interest income | 0 | |
Gain/(loss) on foreign exchange | (152) | |
Accretion expense | (94) | |
Total other income/(expenses) | (246) | |
Income (loss) - before income taxes | (792) | |
Income tax benefit (expense) | (866) | |
Net income (loss) | (1,658) | |
COSE Project | ||
Revenue | 0 | |
Cost of sales | 0 | |
Gross profit | 0 | |
Operating Income (Expenses): | ||
Other operating income | 1,505 | |
Exploration expenses | 0 | |
Administrative expense | 0 | |
Depreciation expense | 0 | |
Impairment of mineral properties | 0 | |
Share-based payments expense | 0 | |
Interest expense | 0 | |
Total operating expense | 1,505 | |
Other Income/(Expenses) | ||
Interest income | 0 | |
Gain/(loss) on foreign exchange | 0 | |
Accretion expense | 0 | |
Total other income/(expenses) | 0 | |
Income (loss) - before income taxes | 1,505 | |
Income tax benefit (expense) | 0 | |
Net income (loss) | 1,505 | |
Argentina, Uruguay and Chile | ||
Revenue | 0 | 0 |
Cost of sales | 0 | 0 |
Gross profit | 0 | 0 |
Operating Income (Expenses): | ||
Other operating income | 0 | |
Exploration expenses | (1,931) | (82) |
Administrative expense | (4,072) | (4,706) |
Depreciation expense | (67) | (60) |
Impairment of mineral properties | 0 | 0 |
Share-based payments expense | 0 | 0 |
Interest expense | (765) | (1,275) |
Total operating expense | (6,835) | (6,123) |
Other Income/(Expenses) | ||
Interest income | 157 | 142 |
Gain/(loss) on foreign exchange | 628 | (12,252) |
Accretion expense | 0 | (578) |
Total other income/(expenses) | 785 | (12,688) |
Income (loss) - before income taxes | (6,050) | (18,811) |
Income tax benefit (expense) | 761 | 2,440 |
Net income (loss) | (5,289) | (16,371) |
UK | ||
Revenue | 0 | 0 |
Cost of sales | 0 | 0 |
Gross profit | 0 | 0 |
Operating Income (Expenses): | ||
Other operating income | 0 | |
Exploration expenses | 0 | 0 |
Administrative expense | (1,433) | (1,005) |
Depreciation expense | (100) | 0 |
Impairment of mineral properties | (1,996) | 0 |
Share-based payments expense | (40) | (190) |
Interest expense | (782) | (390) |
Total operating expense | (4,351) | (1,585) |
Other Income/(Expenses) | ||
Interest income | 0 | 0 |
Gain/(loss) on foreign exchange | (440) | 1,026 |
Accretion expense | 0 | 0 |
Total other income/(expenses) | (440) | 1,026 |
Income (loss) - before income taxes | (4,791) | (559) |
Income tax benefit (expense) | 0 | 0 |
Net income (loss) | (4,791) | (559) |
North America | ||
Revenue | 0 | 0 |
Cost of sales | 0 | 0 |
Gross profit | 0 | 0 |
Operating Income (Expenses): | ||
Other operating income | 0 | |
Exploration expenses | 0 | 0 |
Administrative expense | (307) | (80) |
Depreciation expense | 0 | 0 |
Impairment of mineral properties | 0 | 0 |
Share-based payments expense | (87) | 0 |
Interest expense | (584) | 0 |
Total operating expense | (978) | (80) |
Other Income/(Expenses) | ||
Interest income | 0 | 0 |
Gain/(loss) on foreign exchange | 352 | (1,464) |
Accretion expense | 0 | 0 |
Total other income/(expenses) | 352 | (1,464) |
Income (loss) - before income taxes | (626) | (1,544) |
Income tax benefit (expense) | 0 | 0 |
Net income (loss) | $ (626) | $ (1,544) |
Segment Reporting (Details 1)
Segment Reporting (Details 1) - USD ($) $ in Thousands | Nov. 17, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Total assets | $ 54,789 | $ 47,208 | |
Total liabilities | $ 45,613 | 30,715 | |
Cap-Oeste Project | |||
Total assets | $ 9,116 | 19,005 | |
Total liabilities | 2,629 | 4,374 | |
Lomada Project | |||
Total assets | 2,996 | 1,231 | |
Total liabilities | 1,979 | 1,220 | |
Calcatreu Project | |||
Total assets | 14,678 | 13,751 | |
Total liabilities | 1,591 | 256 | |
Martha and La Josefina Projects | |||
Total assets | 12,106 | 0 | |
Total liabilities | 5,475 | 0 | |
Argentina, Uruguay and Chile | |||
Total assets | 11,263 | 11,270 | |
Total liabilities | 3,875 | 13,532 | |
UK | |||
Total assets | 177 | 1,951 | |
Total liabilities | 20,240 | 11,333 | |
North America | |||
Total assets | 4,453 | 0 | |
Total liabilities | $ 9,824 | $ 0 |
Reverse Acquisition (Details)
Reverse Acquisition (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Nov. 17, 2020 | ||
Business Combinations [Abstract] | |||
Fair value of the Company's shares | [1] | $ 2,287 | |
Cash | $ 60 | ||
Accounts receivable | 1,183 | ||
Prepaid expenses | 14 | ||
Inventory | 906 | ||
Mineral properties | 7,865 | ||
Property, plant and equipment | 2,210 | ||
Goodwill | 4,379 | ||
Performance bond | 351 | ||
Accounts payable and accrued liabilities | (8,725) | ||
Bank indebtedness | (400) | ||
Loan payable and current portion of long-term debt | (581) | ||
Long-term debt | (2,062) | ||
Accrued interest on debt | (550) | ||
Asset retirement obligation | (739) | ||
Deferred tax liabilities | $ (1,624) | ||
Total | $ 2,287 | ||
[1] | The fair value of 5,908,687 common shares issued to pre-reverse acquisition Hunt shareholders is $2,287 based on the fair value of $0.387 per common share (converted from GBP 0.310 closing stock price of Patagonia Gold PLC prior to the transaction on July 24, 2019). |
Reverse Acquisition (Details 1)
Reverse Acquisition (Details 1) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Actual Results (July 24, 2019 to December 31, 2019) | |
Revenue | $ 2,286 |
Comprehensive income (loss) | (1,650) |
2019 Combined Results (had the reverse acquisition occurred on January 1, 2019) | |
Revenue | 23,067 |
Comprehensive income (loss) | (13,117) |
2019 Combined Results (had the reverse acquisition occurred on January 1, 2018) | |
Revenue | 23,067 |
Comprehensive income (loss) | (11,606) |
2019 Combined Results (had the reverse acquisition occurred on January 1, 2018) | |
Revenue | 51,402 |
Comprehensive income (loss) | $ (15,489) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Current tax expense (benefit) | ||
Current period | $ 1,119 | $ 815 |
Deferred tax expense (benefit) | ||
Current period | (1,009) | (3,255) |
Prior period tax adjustments | 188 | 0 |
Total income tax expense (benefit) | $ 298 | $ (2,440) |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Income (loss) before tax | $ (9,377) | $ (10,286) |
Statutory income tax rate | 25.00% | 25.00% |
Expected income tax (benefit) | $ (2,344) | $ (2,572) |
Non-taxable items | (242) | (200) |
Change in valuation allowance | 1,335 | 411 |
Tax rate changes, tax rate differences, and changes in tax legislation | 1,361 | (287) |
Prior period tax adjustments | 188 | 208 |
Total income tax expense (benefit) | $ 298 | $ (2,440) |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) $ in Thousands | Nov. 17, 2020 | Dec. 31, 2018 |
Deferred tax assets are attributable to the following: | ||
Property, plant and equipment | $ 982 | $ 1,343 |
Loss carryforwards | 15,998 | 13,943 |
Other | 1,587 | 770 |
Valuation allowance | (13,613) | (12,278) |
Deferred tax assets | 4,954 | 3,778 |
Set-off of tax | (355) | 0 |
Net deferred tax asset | 4,599 | 3,778 |
Deferred tax liabilities are attributable to the following: | ||
Mineral properties | (2,668) | 0 |
Long-term debt | (322) | 0 |
Other | (58) | 0 |
Deferred tax liabilities | (3,048) | 0 |
Set-off of tax | 355 | 0 |
Net deferred tax liability | $ (2,693) | $ 0 |
Income Taxes (Details 3)
Income Taxes (Details 3) - USD ($) $ in Thousands | Nov. 17, 2020 | Dec. 31, 2019 |
Tax loss carryforwards | $ 17,754 | |
2021 | ||
Tax loss carryforwards | $ 81 | |
2022 | ||
Tax loss carryforwards | 3 | |
2023 | ||
Tax loss carryforwards | 1,073 | |
2024 and After | ||
Tax loss carryforwards | $ 16,597 |
Uncategorized Items - pgdc-2019
Label | Element | Value |
Asset Retirement Obligation [Default Label] | us-gaap_AssetRetirementObligation | $ 2,812,000 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | us-gaap_AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment | 12,257,000 |
Property, Plant and Equipment, Gross | us-gaap_PropertyPlantAndEquipmentGross | 22,765,000 |
Cash and Cash Equivalents, at Carrying Value | us-gaap_CashAndCashEquivalentsAtCarryingValue | $ 685,000 |