Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | Nov. 17, 2020 | |
Cover [Abstract] | ||
Entity Registrant Name | Patagonia Gold Corp. | |
Entity Central Index Key | 0001551206 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2020 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
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 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2020 |
Condensed Interim Consolidated
Condensed Interim Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current Assets | ||
Cash | $ 699 | $ 685 |
Receivables | 1,913 | 1,516 |
Inventories | 4,127 | 3,347 |
Total current assets | 6,739 | 5,548 |
Non-Current Assets | ||
Mineral properties | 8,610 | 8,610 |
Mining rights | 15,848 | 16,997 |
Property, plant and equipment | 10,338 | 10,508 |
Goodwill | 4,379 | 4,379 |
Other financial assets | 240 | 334 |
Deferred tax assets | 3,062 | 4,599 |
Other receivables | 3,126 | 3,814 |
Total non-current assets | 45,603 | 49,241 |
Total assets | 52,342 | 54,789 |
Current Liabilities | ||
Bank indebtedness | 11,578 | 14,989 |
Accounts payable and accrued liabilities | 5,956 | 5,992 |
Accounts payable with related parties | 6,842 | 6,717 |
Loan payable and current portion of long-term debt | 311 | 334 |
Current portion of long-term debt with relate parties | 13,120 | 0 |
Total current liabilities | 37,807 | 28,032 |
Non-Current Liabilities | ||
Long-term debt | 298 | 312 |
Long-term debt with related parties | 1,470 | 11,708 |
Asset retirement obligation | 2,879 | 2,812 |
Deferred tax liabilities | 1,833 | 2,693 |
Other long-term payables | 52 | 56 |
Total non-current liabilities | 6,532 | 17,581 |
Total liabilities | 44,339 | 45,613 |
Commitments and contingencies (Note 25) | ||
Stockholders' Equity | ||
Capital stock: authorized - unlimited no par value issued and outstanding - 317,943,990 common shares (December 31, 2019 - 317,943,900 common shares) | 2,588 | 2,588 |
Preferred shares - unlimited no par value issues and outstanding - nil (December 31, 2019 - nil) | 0 | 0 |
Additional paid in capital | 181,761 | 181,676 |
Deficit | (173,959) | (174,270) |
Accumulated other comprehensive income (loss) | (2,190) | (575) |
Total stockholders' equity attributable to the parent | 8,200 | 9,419 |
Non-controlling interest | (197) | (243) |
Total stockholders' equity | 8,003 | 9,176 |
Total liabilities and stockholders' equity | $ 52,342 | $ 54,789 |
Condensed Interim Consolidate_2
Condensed Interim Consolidated Balance Sheets (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Statement of Financial Position [Abstract] | ||
Capital stock authorized | Unlimited | Unlimited |
Capital stock par value | $ 0 | $ 0 |
Capital stock issued | 317,943,990 | 317,943,990 |
Capital stock outstanding | 317,943,990 | 317,943,990 |
Preferred shares authorized | Unlimited | Unlimited |
Preferred shares par value | $ 0 | $ 0 |
Preferred shares issued | 0 | 0 |
Preferred shares outstanding | 0 | 0 |
Condensed Interim Consolidate_3
Condensed Interim Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Revenue | $ 5,215 | $ 4,871 |
Cost of sales | (2,448) | (6,823) |
Gross profit | 2,767 | (1,952) |
Operating Income (Expenses): | ||
Exploration expenses | (694) | (842) |
Administrative expense | (1,115) | (2,312) |
Share-based payments expense | (85) | (21) |
Interest expense | (717) | (431) |
Total operating expense | (2,611) | (3,606) |
Other Income/(Expenses) | ||
Interest income | 55 | 28 |
Gain/(loss) on foreign exchange | (5) | (40) |
Accretion expense | (162) | (21) |
Realized gain (loss) on investment | 728 | 0 |
Total other income/(expenses) | 616 | (33) |
Income (loss) - before income taxes | 772 | (5,591) |
Income tax benefit (expense) | (415) | 1,594 |
Net income (loss) | 357 | (3,997) |
Attributable to non-controlling interest | 46 | (325) |
Attributable to equity share owners of the parent | 311 | (3,672) |
Other Comprehensive Income (Loss) net of tax | ||
Change in fair value of investment | (94) | (1) |
Foreign currency translation adjustment | (1,521) | 337 |
Total other comprehensive income (loss) | (1,615) | 336 |
Total comprehensive income (loss) | $ (1,258) | $ (3,661) |
Weighted average shares outstanding - basic and diluted | 317,943,990 | 254,355,192 |
Net income (loss) per share - basic and diluted | $ 0 | $ (.02) |
Condensed Interim Consolidate_4
Condensed Interim Consolidated Statement of Shareholders' Equity - USD ($) $ in Thousands | Capital Stock | Preferred Stock | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Additional Paid in Capital | Total Attributable to Parent | Non-Controlling Interest | Total |
Balance, beginning at Dec. 31, 2018 | $ 301 | $ 0 | $ (164,717) | $ (519) | $ 181,549 | $ 16,614 | $ (121) | $ 16,493 |
Share based payment | 21 | 21 | 21 | |||||
Net income (loss) | (3,672) | (3,672) | (325) | (3,997) | ||||
Other comprehensive income (loss) | 336 | 336 | 336 | |||||
Balance, ending at Mar. 31, 2019 | 301 | 0 | (168,389) | (183) | 181,570 | 13,299 | (446) | 12,853 |
Balance, beginning at Dec. 31, 2018 | 301 | 0 | (164,717) | (519) | 181,549 | 16,614 | (121) | 16,493 |
Shares issued in reverse acquisition (Note 26) | 2,287 | |||||||
Balance, ending at Dec. 31, 2019 | 2,588 | 0 | (174,270) | (575) | 181,676 | 9,419 | (243) | 9,176 |
Shares issued in reverse acquisition (Note 26) | 0 | |||||||
Share based payment | 85 | 85 | 85 | |||||
Net income (loss) | 311 | 311 | 46 | 357 | ||||
Other comprehensive income (loss) | (1,615) | (1,615) | (1,615) | |||||
Balance, ending at Mar. 31, 2020 | $ 2,588 | $ 0 | $ (173,959) | $ (2,190) | $ (181,761) | $ 8,200 | $ (197) | $ 8,003 |
Condensed Interim Consolidate_5
Condensed Interim Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash Flow from Operating Activities | ||
Net income/(loss) | $ 357 | $ (3,997) |
Items not affecting cash | ||
Depreciation of property, plant and equipment | 427 | 563 |
Depreciation of mining rights | 25 | 25 |
Share based payment expense | 85 | 21 |
Asset retirement obligation | (95) | (27) |
Write-down of inventory | 0 | 2,368 |
Accretion expense | 162 | 21 |
Deferred tax benefit/(expense) | 415 | (1,594) |
Net change in non-cash working capital items | ||
(Increase)/decrease in receivables | 291 | 1,102 |
(Increase)/decrease in deferred tax assets | 1,144 | 492 |
Decrease (increase) in inventory | (780) | (279) |
(Increase)/decrease in other financial assets | 94 | 1 |
Increase/(decrease) in accounts payable and accrued liabilities | (9) | (887) |
Increase/(decrease) in accounts payable and accrued liabilities with related parties | 125 | 37 |
Increase/(decrease) in provision | (4) | (9) |
Increase/(decrease) in transaction taxes payable | (28) | (108) |
Increase/(decrease) in deferred tax liabilities | (881) | 0 |
Net cash provided by/(used in) operating activities | 1,328 | (2,271) |
Cash Flows from Investing Activities | ||
Purchases of property plant and equipment | (271) | (136) |
Purchase of mineral property | 0 | (182) |
Proceeds from disposal of property, plant and equipment | 14 | 5 |
Net cash provided by/(used in) investing activities | (257) | (313) |
Cash Flow from Financing Activities | ||
Bank indebtedness (repayment) | (3,411) | 2,168 |
Proceeds from loans with related parties | 2,882 | 2,006 |
Repayment of loan | (37) | (1,895) |
Net cash provided by/(used in) financing activities | (566) | 2,279 |
Net increase/(decrease) in cash | 505 | (305) |
Effect of foreign exchange on cash | (491) | 57 |
Cash, beginning of period | 685 | 660 |
Cash, end of the period | 699 | 412 |
Taxes paid | (28) | (108) |
Interest paid | (7) | (107) |
Supplemental Non-Cash Information | ||
Change in fair value of investment | $ (94) | $ (1) |
Nature of Business
Nature of Business | 3 Months Ended |
Mar. 31, 2020 | |
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 24). 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 condensed interim 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 95.3 US$ Production and Exploration Stage Minera Minamalu S.A. Argentina 100 US$ Exploration Stage Huemules S.A. Argentina 100 US$ Exploration Stage Leleque Exploración S.A. Argentina 100 US$ Exploration Stage Patagonia Gold Limited (formerly Patagonia Gold PLC) UK 100 GBP$ Holding Minera Aquiline S.A.U. Argentina 100 US$ Exploration Stage Patagonia Gold Canada Inc. Canada 100 CAD$ Holding Patagonia Gold Chile S.C.M. Chile 100 CH$ Exploration Stage Ganadera Patagonia S.R.L. Argentina 100 US$ Land Holding 1494716 Alberta Ltd. Canada 100 CAD$ Nominee Shareholder Hunt Gold USA LLC USA 100 US$ Management Company The Company’s activities include the exploration for and production of minerals from properties in Argentina and Chile. On the basis of information to date, properties where it has not yet been determined if economically recoverable 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. The Company has initiated a corporate reorganization (the “Reorganization”), which resulted in Patagonia Gold SA (“PGSA”) and Cerro Cazador SA (“CCSA”) (former wholly owned subsidiary) 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 4.7% 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. |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The condensed interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP). These condensed interim consolidated financial statements have been prepared on a historical cost basis except for certain financial instruments measured at fair value. In addition, these condensed interim 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 condensed interim 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 condensed interim consolidated financial statements and estimates with significant risk of material adjustment in the current and following periods are discussed in Note 4. 2. Going Concern |
Going Concern
Going Concern | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Going Concern | The accompanying condensed interim 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 three months ended March 31, 2020, the Company had net income of $357. As at March 31, 2020, the Company has negative working capital of $31,068 and had an accumulated deficit of $173,959. 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 three months ending March 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 condensed interim consolidated 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 and Critical Accounting Judgments and Estimates | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | The accounting polices used in the preparation of these interim financial statements are consistent with those of the Company’s audited financial statements for the year ended December 31, 2019. Please see note 4 - Significant Accounting Policies and note 6 - Critical Accounting Judgement and Estimates contained in the 2019 10-K. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recently issued and 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 adopted the new credit loss standard effective January 1, 2020. The adoption of the new credit loss standard did not have a material effect on our financial position, results of operations or cash flows. Recently issued but not yet adopted accounting pronouncements 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. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | March 31, 2020 December 31, 2019 $’000 $’000 Gold held on carbon $ 1,595 $ 1,422 Silver and gold concentrate 642 157 Materials and supplies 1,890 1,768 $ 4,127 $ 3,347 In 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 for the three months ended March 31, 2019. |
Mineral Properties
Mineral Properties | 3 Months Ended |
Mar. 31, 2020 | |
Mineral Properties, Net [Abstract] | |
Mineral Properties | Mining assets Surface rights acquired Total $’000 $’000 $’000 Cost Balance at January 1, 2019 $ 1,780 $ 745 $ 2,525 Reverse acquisition (Note 24) 6,830 1,035 7,865 Additions 216 - 216 Impairment (1,996 ) - (1,996 ) Balance December 31, 2019 $ 6,830 $ 1,780 $ 8,610 Additions - - - Impairment - - - Balance March 31, 2020 $ 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 was recognized within mining assets at a cost of $1,996. In December 2019, the Company announced the termination of its option agreement with Trilogy and in exchange received common shares of Trilogy, that will result in PGP owning 42.5% of the then issued and outstanding shares of Trilogy. In connection with the termination of the option agreement, the Company impaired $1,996 of the mining asset related to San José Project in Uruguay during the year ended December 31, 2019. 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 March 31, 2020, this project has a carrying amount of $Nil (December 31, 2019 - $Nil) on the condensed interim consolidated balance sheet. |
Asset Retirement Obligation
Asset Retirement Obligation | 3 Months Ended |
Mar. 31, 2020 | |
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 (December 31, 2019 - $5,533) which has been discounted using a credit-adjusted rate of 24.94% (December 31, 2019 – 24.94%) and an inflation rate of 1.54% (December 31, 2019 – 2.29%). The following table describes the changes to the Company's asset retirement obligation liability: Three months ended Year ended March 31, 2020 December 31, 2019 $’000 $’000 Asset retirement obligation at beginning of period $ 2,812 $ 552 Reverse acquisition (note 24) - 739 Change in estimate (95 ) 1,342 Accretion expense 162 179 Asset retirement obligation at end of period $ 2,879 $ 2,812 |
Mining Rights
Mining Rights | 3 Months Ended |
Mar. 31, 2020 | |
Mining Rights | |
Mining Rights | Fomicruz Agreement Minera Aquiline Argentina Total $’000 $’000 $’000 Balance at January 1, 2019 $ 3,288 $ 13,187 $ 16,475 Amortization (100 ) - (100 ) Exchange differences - 622 622 Balance December 31, 2019 $ 3,188 $ 13,809 $ 16,997 Amortization (25 ) - (25 ) Exchange differences - (1,124 ) (1,124 ) Balance March 31, 2020 $ 3,163 $ 12,685 $ 15,848 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 condensed interim 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. Effective January 1, 2020, the Company’s former subsidiary Cerro Cazador S.A merged with PGSA and as a result, Formicruz has a 4.7% interest in the newly merged entity. 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 | 3 Months Ended |
Mar. 31, 2020 | |
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 three months ended March 31, 2020, the value of the short-term investments in equity decreased to $6 (December 31, 2019 - $8). The change in the fair value of $2 (December 31, 2019 - $3) for the three months ended March 31, 2020 is recorded as other comprehensive loss in the Company’s condensed interim 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 three months ended March 31, 2020, the value of the bond increased to $234 (December 31, 2019 - $326). The change in the face value of the performance bond of $92 (December 31, 2019 - $25) for the three months ended March 31, 2020 ended is recorded as other comprehensive income/(loss) in the Company’s condensed interim 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 March 31, 2020, there are no restrictions on the performance bond. |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Mar. 31, 2020 | |
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, 2018 $ 5,901 $ 230 $ 13,458 $ 566 $ 20,155 Reverse acquisition (Note 24) 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 Additions 24 - 59 188 271 Disposals - - (177 ) - (177 ) Balance at March 31, 2020 $ 7,860 $ 299 $ 13,773 $ 927 $ 22,859 Accumulated depreciation 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 Disposals - - (163 ) - (163 ) Depreciation for the period 54 3 370 - 427 Balance at March 31, 2020 $ 5,959 $ 45 $ 6,517 $ - $ 12,521 Net book value At December 31, 2019 $ 1,931 $ 257 $ 7,581 $ 739 $ 10,508 At March 31, 2020 $ 1,901 $ 254 $ 7,256 $ 927 $ 10,338 |
Receivables
Receivables | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Receivables | March 31, December 31, 2020 2019 $’000 $’000 Receivable from sale $ 152 $ 150 Value added tax ("VAT") recoverable 1,382 880 Other receivables 379 486 Total receivables $ 1,913 $ 1,516 |
Other Receivables
Other Receivables | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Other Receivables | March 31, December 31, 2020 2019 $’000 $’000 Value added tax ("VAT") recoverable $ 665 $ 1,226 Other receivables 2,461 2,588 Total Other Receivables $ 3,126 $ 3,814 |
Bank Indebtedness
Bank Indebtedness | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Bank Indebtedness | As at March 31, 2020, the Company has bank indebtedness of $11,578 (December 31, 2019 – $14,989) 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 March 31, 2020, 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. Subsequent to March 31, 2020, the Company renewed the operating lines of credit at an interest rate of 1.8% and mature on January 31, 2021. |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 3 Months Ended |
Mar. 31, 2020 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities | March 31, December 31, 2020 2019 $’000 $’000 Trade accounts payable and accrued liabilities $ 4,763 $ 5,102 Other accruals 1,193 890 Accounts payable to related parties (note 20) 6,842 6,717 Total $ 12,798 $ 12,709 |
Loan Payable and Current Portio
Loan Payable and Current Portion of Long-term Debt | 3 Months Ended |
Mar. 31, 2020 | |
Loans Payable [Abstract] | |
Loan Payable and Current Portion of Long-term Debt | March 31, December 31, 2020 2019 $’000 $’000 Current portion of long-term debt $ 202 $ 200 Current portion of long-term debt with related parties 13,120 - Leases payable 109 134 Total $ 13,431 $ 334 |
Long-term Debt
Long-term Debt | 3 Months Ended |
Mar. 31, 2020 | |
Long-term Debt, Unclassified [Abstract] | |
Long-term Debt | March 31, December 31, 2020 2019 $’000 $’000 Loan to related party secured by a letter of guarantee from the Company, at 5% interest per annum, due 2021 (note 20) $ 10,458 $ 7,908 Loan to related party secured by assets of the Company payable 5.75% interest per annum, due 2022 501 512 Acquired in reverse acquisition. Unsecured loan payable to related party at 8% interest per annum, due 2022 (note 20 and 24) 1,034 990 Acquired in reverse acquisition. Unsecured loan payable to related party at 8% interest per annum, due 2021 (note 20 and 24) 861 826 Acquired in reverse acquisition. Unsecured loan payable to related party at 7% interest per annum, due 2021 (note 20 and 24) 1,084 1,038 Accrued interest on debt 1,152 946 $ 15,090 $ 12,220 Less current portion (13,322 ) (200 ) $ 1,768 $ 12,020 Principal payments on long-term debts are due as followed: Year ending December 31, 2020 195 2021 13,327 2022 1,568 |
Net Income (Loss) per Share
Net Income (Loss) per Share | 3 Months Ended |
Mar. 31, 2020 | |
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 three months ended March 31, 2020, there were 7,650,000 stock options that were not included in the diluted weighted average number of common shares outstanding as the average market price of the Company’s common shares during the three month period ended March 31, 2020 was below the exercise price of the stock options. March 31, March 31, 2020 2019 Net income (loss) ($’000) $ 357 $ (3,997 ) Weighted average number of common shares outstanding – basic and diluted 317,943,990 254,355,192 Net income (loss) per share $ 0.00 $ (0.02 ) |
Capital Stock
Capital Stock | 3 Months Ended |
Mar. 31, 2020 | |
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 Three months ended Year ended March 31, 2020 December 31, 2019 Number Amount Number Amount $’000 $’000 Balance, beginning of year 317,943,990 $ 2,588 254,355,192 $ 301 Share issued in reverse acquisition (note 24) - - 63,588,798 2,287 Balance, at end of period 317,943,990 $ 2,588 317,943,990 $ 2,588 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 at March 31, 2020, there were no preferred shares issued by the Company (December 31, 2019 - nil). 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 24). Normal Course Issuer Bid On February 19, 2020, the Company announces that it has received approval from the TSX Venture Exchange (“TSXV”) of its Notice of Intention to Make a Normal Course Issuer Bid (the “NCIB”). Under the NCIB, the Company may purchase for cancellation up to 15,897,199 common shares (the “Shares”) (representing approximately 5% of its 317,943,990 issued and outstanding common shares as of February 17, 2020) over a twelve month period commencing on February 21, 2020. The NCIB will expire no later than February 20, 2021. During the three months ended March 31, 2020, the Company did not repurchase any common shares under the NCIB. 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. Three months ended March 31, 2020 Year ended December 31, 2019 Number of options Weighted Average Price (CAD) Number of options Weighted Average Price (CAD) Balance, beginning of period 7,650,000 $ 0.065 1,706,830 $ 13,896 Granted - $ - 7,650,000 $ 0.065 Expiration of stock options - $ - (1,706,830 ) $ (13.896 ) Balance, end of period 7,650,000 $ 0.065 7,650,000 $ 0.065 Range of Exercise prices (CAD) Number outstanding Weighted average life (years) Weighted average exercise price (CAD) Number exercisable on March 31, 2020 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 $85 during the three months ended March 31, 2020. The fair value of the options was calculated using the Black-Scholes option pricing model and using the following assumptions: Discount rate 1.46% Expected volatility 253.14% Expected life (years) 5 Expected dividend yield 0% Forfeiture rate 0% Stock price CAD$ 0.06 Warrants _____________ There are no warrants outstanding as at March 31, 2020 and December 31, 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 | 3 Months Ended |
Mar. 31, 2020 | |
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 condensed interim consolidated 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 Three months ended March 31 As at March 31, 2020 and December 31, 2019 $’000 $’000 $’000 $’000 $’000 $’000 A company controlled by a director 1 2020 95 - - - 6,469 - - admin, office, and interest expenses 2019 - - - - 6,374 - A company controlled by a director 2020 145 2,550 - - 255 10,830 - salaries and wages 2019 346 7,908 33 - 227 8,163 Directors 2020 65 - 63 - 118 - - salaries and wages 2019 337 - 317 - 116 - Director 1 2020 - 347 - - - 3,760 -loans 2019 - 347 - - - 3,545 1 Balances owed to related parties were acquired as part of the reverse acquisition (Note 24) As at March 31, 2020, the Company has $6,842 (December 31, 2019 - $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 | 3 Months Ended |
Mar. 31, 2020 | |
Selling, General and Administrative Expense [Abstract] | |
Administrative Expenses | Three months ended March 31, 2020 March 31, 2019 $’000 $’000 General and administrative $ 739 $ 1,869 Argentina statutory taxes 100 102 Professional fees 68 199 Operating leases 21 24 Directors’ remuneration 59 71 Gain on sale of property, plant and equipment (5 ) (14 ) Depreciation of property, plant and equipment 427 563 Depreciation allocated to inventory (392 ) (541 ) Amortization of mining rights 25 25 Consulting fees 98 11 Transaction taxes expenses (income) (25 ) 3 Total $ 1,115 $ 2,312 |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020, there were no changes in the levels in comparison to December 31, 2019. The fair values of financial instruments are summarized as follows: March 31, 2020 December 31, 2019 Carrying amount Fair value Carrying amount Fair value $‘000 $‘000 $‘000 $‘000 Financial Assets Amortized cost Cash (Level 1) 699 699 685 685 Available for sale Other financial assets (Level 1) 240 240 334 334 Loans and receivables Receivables and other receivable ¹ 2,992 2,992 3,224 3,224 Financial Liabilities Amortized cost Bank indebtedness 11,578 11,578 14,989 14,989 Accounts payable and accrued liabilities 12,798 12,798 12,709 12,709 Loan payable and current portion of long-term debt 13,729 13,431 334 334 Long-term debt 2,051 1,768 13,026 13,026 ¹ Amounts exclude value added tax (“VAT”) recoverable of $2,047 and $2,106 as at March 31, 2020 and December 31, 2019. 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 March 31, 2020, the Company had two customers whose trade receivables of $150 (December 31, 2019 – $150) 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 three months ended March 31, 2020, the Company made sales of $5,215 (2019 - $4,871) 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. As at March 31, 2020, the Company had total cash balances of $699 (December 31, 2019 - $685) at financial institutions, where $Nil (December 31, 2019 - $Nil) is in excess of federally insured limits. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2020 | |
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: For the three months ended March 31, 2020 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 $ 1,337 $ 3,447 $ - $ 431 $ - $ - $ - $ 5,215 Cost of sales (500 ) (1,559 ) - (349 ) - - - (2,448 ) Gross profit (loss) $ 837 $ 1,848 $ - $ 82 $ - $ - $ - $ 2,767 Operating expense Exploration expense $ - $ (141 ) $ (247 ) $ (40 ) $ (266 ) $ - $ - $ (694 ) Administrative expense - - (51 ) - (672 ) (154 ) (178 ) (1,005 ) Depreciation expense - - (4 ) - (31 ) (25 ) - (60 ) Impairment of mineral properties - - - - - - - - Share-based payments - - - - - (85 ) (85 ) Interest expense - - - - (188 ) (199 ) (330 ) (717 ) Total operating expense $ - $ (141 ) $ (302 ) $ (40 ) $ (1,157 ) $ (378 ) $ (593 ) $ (2,611 ) Other income/(expense) Interest income $ - $ - $ 1 $ - $ 54 $ - $ - $ 55 Gain/(loss) on foreign exchange - - 237 - (411 ) (660 ) 829 (5 ) Accretion expense (104 ) (8 ) - (50 ) - - - (162 ) Realized gain (loss) on investment - - - - 728 - - 728 Total other income/(expense) $ (104 ) $ (8 ) $ 238 $ (50 ) $ 371 $ (660 ) $ 829 $ 616 Income/(loss) – before income tax $ 733 $ 1,699 $ (64 ) $ (8 ) $ (786 ) $ (1,038 ) $ 236 $ 772 Income tax/(benefit) - - (17 ) - (398 ) - - (415 ) Net income/(loss) $ 733 $ 1,699 $ (81 ) $ (81 ) $ (1,184 ) $ (1,038 ) $ 236 $ 357 For the three months ended March 31, 2019 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 $ 1,265 $ 3,606 $ - $ - $ - $ - $ - $ 4,871 Cost of sales (1,616 ) (5,207 ) - - - - - (6,823 ) Gross profit (loss) $ (351 ) $ (1,601 ) $ - $ - $ - $ - $ - $ (1,952 ) Operating expense Exploration expense $ - $ - $ (604 ) $ - $ (238 ) $ - $ - $ (842 ) Administrative expense - - (31 ) - (2,007 ) (209 ) (18 ) (2,265 ) Depreciation expense - - (5 ) - (17 ) (25 ) - (47 ) Share-based payments - - - - - (21 ) - (21 ) Interest expense - - - - (283 ) (148 ) - (431 ) Total operating expense $ - $ - $ (640 ) $ - $ (2,545 ) $ (403 ) $ (18 ) $ (3,606 ) Other income/(expense) Interest income $ - $ - $ - $ - $ 28 $ - $ - $ 28 Gain/(loss) on foreign exchange - - 26 - (35 ) (350 ) 319 (40 ) Accretion expense (12 ) (9 ) - - - - - (21 ) Total other income/(expense) $ (12 ) $ (9 ) $ 26 $ - $ (7 ) $ (350 ) $ 319 $ (33 ) Income/(loss) – before income tax $ (363 ) $ (1,610 ) $ (614 ) $ - $ (2,552 ) $ (753 ) $ 301 $ (5,591 ) Income tax/(benefit) - - - - 1,594 - - 1,594 Net income/(loss) $ (363 ) $ (1,610 ) $ (614 ) $ - $ (958 ) $ (753 ) $ 301 $ (3,997 ) Total Assets Total liabilities March 31, 2020 December 31, 2019 March 31, 2020 December 31, 2019 $’000 $’000 $’000 $’000 Argentina – Cap-Oeste $ 10,814 $ 9,116 $ 2,735 $ 2,629 Argentina – Lomada 1,894 2,996 2,102 1,979 Argentina – Calcatreu 16,473 14,678 1,519 1,591 Argentina – Martha & La Josefina 10,697 12,106 2,145 5,475 Argentina and Chile 7,632 11,263 3,628 3,875 United Kingdom 21 177 17,439 20,240 North America 4,811 4,453 14,771 9,824 Total $ 52,342 $ 54,789 $ 44,339 $ 45,613 |
Reverse Acquisition
Reverse Acquisition | 3 Months Ended |
Mar. 31, 2020 | |
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). |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
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. |
COVID-19
COVID-19 | 3 Months Ended |
Mar. 31, 2020 | |
Covid-19 | |
COVID-19 | The recent 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. Additionally, while the potential economic impact brought by, and the duration of the COVID-19 pandemic is difficult to assess or predict, the impact of the COVID-19 pandemic on the global financial markets may reduce our ability to access capital, which could negatively impact our short-term and long-term liquidity. The ultimate impact of the COVID-19 pandemic is highly uncertain and subject to change. We do not yet know the full extent of potential delays or impacts on our business, financing or mining production activities or the ore and mining industry or the global economy as a whole. However, these effects could have a material impact on our liquidity, capital resources, operations and business and those of the third parties on which we rely. The management and board of the Company is constantly monitoring this situation to minimize potential losses. 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. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Lines of credit renewal Subsequent to March 31, 2020, the Company renewed the operating lines of credit at an interest rate of 1.8% and mature on January 31, 2021 (Note 14). 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. |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
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 adopted the new credit loss standard effective January 1, 2020. The adoption of the new credit loss standard did not 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. |
Nature of Business (Tables)
Nature of Business (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Subsidiaries | Corporation Incorporation Percentage ownership Functional currency Business purpose Patagonia Gold S.A. (PGSA) Argentina 95.3 US$ Production and Exploration Stage Minera Minamalu S.A. Argentina 100 US$ Exploration Stage Huemules S.A. Argentina 100 US$ Exploration Stage Leleque Exploración S.A. Argentina 100 US$ Exploration Stage Patagonia Gold Limited (formerly Patagonia Gold PLC) UK 100 GBP$ Holding Minera Aquiline S.A.U. Argentina 100 US$ Exploration Stage Patagonia Gold Canada Inc. Canada 100 CAD$ Holding Patagonia Gold Chile S.C.M. Chile 100 CH$ Exploration Stage Ganadera Patagonia S.R.L. Argentina 100 US$ Land Holding 1494716 Alberta Ltd. Canada 100 CAD$ Nominee Shareholder Hunt Gold USA LLC USA 100 US$ Management Company |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | March 31, 2020 December 31, 2019 $’000 $’000 Gold held on carbon $ 1,595 $ 1,422 Silver and gold concentrate 642 157 Materials and supplies 1,890 1,768 $ 4,127 $ 3,347 |
Mineral Properties (Tables)
Mineral Properties (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Mineral Properties, Net [Abstract] | |
Mineral properties | Mining assets Surface rights acquired Total $’000 $’000 $’000 Cost Balance at January 1, 2019 $ 1,780 $ 745 $ 2,525 Reverse acquisition (Note 24) 6,830 1,035 7,865 Additions 216 - 216 Impairment (1,996 ) - (1,996 ) Balance December 31, 2019 $ 6,830 $ 1,780 $ 8,610 Additions - - - Impairment - - - Balance March 31, 2020 $ 6,830 $ 1,780 $ 8,610 |
Asset Retirement Obligation (Ta
Asset Retirement Obligation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset retirement obligation | Three months ended Year ended March 31, 2020 December 31, 2019 $’000 $’000 Asset retirement obligation at beginning of period $ 2,812 $ 552 Reverse acquisition (note 24) - 739 Change in estimate (95 ) 1,342 Accretion expense 162 179 Asset retirement obligation at end of period $ 2,879 $ 2,812 |
Mining Rights (Tables)
Mining Rights (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Mining Rights | |
Mining rights | Fomicruz Agreement Minera Aquiline Argentina Total $’000 $’000 $’000 Balance at January 1, 2019 $ 3,288 $ 13,187 $ 16,475 Amortization (100 ) - (100 ) Exchange differences - 622 622 Balance December 31, 2019 $ 3,188 $ 13,809 $ 16,997 Amortization (25 ) - (25 ) Exchange differences - (1,124 ) (1,124 ) Balance March 31, 2020 $ 3,163 $ 12,685 $ 15,848 |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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, 2018 $ 5,901 $ 230 $ 13,458 $ 566 $ 20,155 Reverse acquisition (Note 24) 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 Additions 24 - 59 188 271 Disposals - - (177 ) - (177 ) Balance at March 31, 2020 $ 7,860 $ 299 $ 13,773 $ 927 $ 22,859 Accumulated depreciation 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 Disposals - - (163 ) - (163 ) Depreciation for the period 54 3 370 - 427 Balance at March 31, 2020 $ 5,959 $ 45 $ 6,517 $ - $ 12,521 Net book value At December 31, 2019 $ 1,931 $ 257 $ 7,581 $ 739 $ 10,508 At March 31, 2020 $ 1,901 $ 254 $ 7,256 $ 927 $ 10,338 |
Receivables (Tables)
Receivables (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |
Receivables | March 31, December 31, 2020 2019 $’000 $’000 Receivable from sale $ 152 $ 150 Value added tax ("VAT") recoverable 1,382 880 Other receivables 379 486 Total receivables $ 1,913 $ 1,516 |
Other Receivables (Tables)
Other Receivables (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Other receivables | March 31, December 31, 2020 2019 $’000 $’000 Value added tax ("VAT") recoverable $ 665 $ 1,226 Other receivables 2,461 2,588 Total Other Receivables $ 3,126 $ 3,814 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Payables and Accruals [Abstract] | |
Accounts payable and accrued liabilities | March 31, December 31, 2020 2019 $’000 $’000 Trade accounts payable and accrued liabilities $ 4,763 $ 5,102 Other accruals 1,193 890 Accounts payable to related parties (note 20) 6,842 6,717 Total $ 12,798 $ 12,709 |
Loan Payable and Current Port_2
Loan Payable and Current Portion of Long-term Debt (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Loans Payable [Abstract] | |
Loan payable and current portion of long-term debt | March 31, December 31, 2020 2019 $’000 $’000 Current portion of long-term debt $ 202 $ 200 Current portion of long-term debt with related parties 13,120 - Leases payable 109 134 Total $ 13,431 $ 334 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Long-term Debt, Unclassified [Abstract] | |
Long-term debt | March 31, December 31, 2020 2019 $’000 $’000 Loan to related party secured by a letter of guarantee from the Company, at 5% interest per annum, due 2021 (note 20) $ 10,458 $ 7,908 Loan to related party secured by assets of the Company payable 5.75% interest per annum, due 2022 501 512 Acquired in reverse acquisition. Unsecured loan payable to related party at 8% interest per annum, due 2022 (note 20 and 24) 1,034 990 Acquired in reverse acquisition. Unsecured loan payable to related party at 8% interest per annum, due 2021 (note 20 and 24) 861 826 Acquired in reverse acquisition. Unsecured loan payable to related party at 7% interest per annum, due 2021 (note 20 and 24) 1,084 1,038 Accrued interest on debt 1,152 946 $ 15,090 $ 12,220 Less current portion (13,322 ) (200 ) $ 1,768 $ 12,020 |
Principal payments on long-term debts | Year ending December 31, 2020 195 2021 13,327 2022 1,568 |
Net Income (Loss) per Share (Ta
Net Income (Loss) per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings (loss) per share | March 31, March 31, 2020 2019 Net income (loss) ($’000) $ 357 $ (3,997 ) Weighted average number of common shares outstanding – basic and diluted 317,943,990 254,355,192 Net income (loss) per share $ 0.00 $ (0.02 ) |
Capital Stock (Tables)
Capital Stock (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Common shares | Common Shares Three months ended Year ended March 31, 2020 December 31, 2019 Number Amount Number Amount $’000 $’000 Balance, beginning of year 317,943,990 $ 2,588 254,355,192 $ 301 Share issued in reverse acquisition (note 24) - - 63,588,798 2,287 Balance, at end of period 317,943,990 $ 2,588 317,943,990 $ 2,588 |
Stock option activity | Three months ended March 31, 2020 Year ended December 31, 2019 Number of options Weighted Average Price (CAD) Number of options Weighted Average Price (CAD) Balance, beginning of period 7,650,000 $ 0.065 1,706,830 $ 13,896 Granted - $ - 7,650,000 $ 0.065 Expiration of stock options - $ - (1,706,830 ) $ (13.896 ) Balance, end of period 7,650,000 $ 0.065 7,650,000 $ 0.065 |
Stock options by exercise price | Range of Exercise prices (CAD) Number outstanding Weighted average life (years) Weighted average exercise price (CAD) Number exercisable on March 31, 2020 Stock options $ 0.065 7,650,000 4.74 0.065 7,650,000 |
Fair value assumptions | 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) | 3 Months Ended |
Mar. 31, 2020 | |
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 Three months ended March 31 As at March 31, 2020 and December 31, 2019 $’000 $’000 $’000 $’000 $’000 $’000 A company controlled by a director 1 2020 95 - - - 6,469 - - admin, office, and interest expenses 2019 - - - - 6,374 - A company controlled by a director 2020 145 2,550 - - 255 10,830 - salaries and wages 2019 346 7,908 33 - 227 8,163 Directors 2020 65 - 63 - 118 - - salaries and wages 2019 337 - 317 - 116 - Director 1 2020 - 347 - - - 3,760 -loans 2019 - 347 - - - 3,545 1 Balances owed to related parties were acquired as part of the reverse acquisition (Note 24) |
Administrative Expenses (Tables
Administrative Expenses (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Selling, General and Administrative Expense [Abstract] | |
Administrative expenses | Three months ended March 31, 2020 March 31, 2019 $’000 $’000 General and administrative $ 739 $ 1,869 Argentina statutory taxes 100 102 Professional fees 68 199 Operating leases 21 24 Directors’ remuneration 59 71 Gain on sale of property, plant and equipment (5 ) (14 ) Depreciation of property, plant and equipment 427 563 Depreciation allocated to inventory (392 ) (541 ) Amortization of mining rights 25 25 Consulting fees 98 11 Transaction taxes expenses (income) (25 ) 3 Total $ 1,115 $ 2,312 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Financial Instruments, Owned, at Fair Value [Abstract] | |
Financial instruments | March 31, 2020 December 31, 2019 Carrying amount Fair value Carrying amount Fair value $‘000 $‘000 $‘000 $‘000 Financial Assets Amortized cost Cash (Level 1) 699 699 685 685 Available for sale Other financial assets (Level 1) 240 240 334 334 Loans and receivables Receivables and other receivable ¹ 2,992 2,992 3,224 3,224 Financial Liabilities Amortized cost Bank indebtedness 11,578 11,578 14,989 14,989 Accounts payable and accrued liabilities 12,798 12,798 12,709 12,709 Loan payable and current portion of long-term debt 13,729 13,431 334 334 Long-term debt 2,051 1,768 13,026 13,026 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment reporting | For the three months ended March 31, 2020 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 $ 1,337 $ 3,447 $ - $ 431 $ - $ - $ - $ 5,215 Cost of sales (500 ) (1,559 ) - (349 ) - - - (2,448 ) Gross profit (loss) $ 837 $ 1,848 $ - $ 82 $ - $ - $ - $ 2,767 Operating expense Exploration expense $ - $ (141 ) $ (247 ) $ (40 ) $ (266 ) $ - $ - $ (694 ) Administrative expense - - (51 ) - (672 ) (154 ) (178 ) (1,005 ) Depreciation expense - - (4 ) - (31 ) (25 ) - (60 ) Impairment of mineral properties - - - - - - - - Share-based payments - - - - - (85 ) (85 ) Interest expense - - - - (188 ) (199 ) (330 ) (717 ) Total operating expense $ - $ (141 ) $ (302 ) $ (40 ) $ (1,157 ) $ (378 ) $ (593 ) $ (2,611 ) Other income/(expense) Interest income $ - $ - $ 1 $ - $ 54 $ - $ - $ 55 Gain/(loss) on foreign exchange - - 237 - (411 ) (660 ) 829 (5 ) Accretion expense (104 ) (8 ) - (50 ) - - - (162 ) Realized gain (loss) on investment - - - - 728 - - 728 Total other income/(expense) $ (104 ) $ (8 ) $ 238 $ (50 ) $ 371 $ (660 ) $ 829 $ 616 Income/(loss) – before income tax $ 733 $ 1,699 $ (64 ) $ (8 ) $ (786 ) $ (1,038 ) $ 236 $ 772 Income tax/(benefit) - - (17 ) - (398 ) - - (415 ) Net income/(loss) $ 733 $ 1,699 $ (81 ) $ (81 ) $ (1,184 ) $ (1,038 ) $ 236 $ 357 For the three months ended March 31, 2019 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 $ 1,265 $ 3,606 $ - $ - $ - $ - $ - $ 4,871 Cost of sales (1,616 ) (5,207 ) - - - - - (6,823 ) Gross profit (loss) $ (351 ) $ (1,601 ) $ - $ - $ - $ - $ - $ (1,952 ) Operating expense Exploration expense $ - $ - $ (604 ) $ - $ (238 ) $ - $ - $ (842 ) Administrative expense - - (31 ) - (2,007 ) (209 ) (18 ) (2,265 ) Depreciation expense - - (5 ) - (17 ) (25 ) - (47 ) Share-based payments - - - - - (21 ) - (21 ) Interest expense - - - - (283 ) (148 ) - (431 ) Total operating expense $ - $ - $ (640 ) $ - $ (2,545 ) $ (403 ) $ (18 ) $ (3,606 ) Other income/(expense) Interest income $ - $ - $ - $ - $ 28 $ - $ - $ 28 Gain/(loss) on foreign exchange - - 26 - (35 ) (350 ) 319 (40 ) Accretion expense (12 ) (9 ) - - - - - (21 ) Total other income/(expense) $ (12 ) $ (9 ) $ 26 $ - $ (7 ) $ (350 ) $ 319 $ (33 ) Income/(loss) – before income tax $ (363 ) $ (1,610 ) $ (614 ) $ - $ (2,552 ) $ (753 ) $ 301 $ (5,591 ) Income tax/(benefit) - - - - 1,594 - - 1,594 Net income/(loss) $ (363 ) $ (1,610 ) $ (614 ) $ - $ (958 ) $ (753 ) $ 301 $ (3,997 ) Total Assets Total liabilities March 31, 2020 December 31, 2019 March 31, 2020 December 31, 2019 $’000 $’000 $’000 $’000 Argentina – Cap-Oeste $ 10,814 $ 9,116 $ 2,735 $ 2,629 Argentina – Lomada 1,894 2,996 2,102 1,979 Argentina – Calcatreu 16,473 14,678 1,519 1,591 Argentina – Martha & La Josefina 10,697 12,106 2,145 5,475 Argentina and Chile 7,632 11,263 3,628 3,875 United Kingdom 21 177 17,439 20,240 North America 4,811 4,453 14,771 9,824 Total $ 52,342 $ 54,789 $ 44,339 $ 45,613 |
Reverse Acquisition (Tables)
Reverse Acquisition (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 |
Nature of Business (Details)
Nature of Business (Details) | 3 Months Ended |
Mar. 31, 2020 | |
Subsidiary 1 | |
Corporation | Patagonia Gold S.A. (PGSA) |
Incorporation | Argentina |
Percentage ownership | 95.30% |
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 | Ganadera Patagonia S.R.L. |
Incorporation | Argentina |
Percentage ownership | 100.00% |
Functional currency | US$ |
Business purpose | Land Holding |
Subsidiary 10 | |
Corporation | 1494716 Alberta Ltd. |
Incorporation | Canada |
Percentage ownership | 100.00% |
Functional currency | CAD$ |
Business purpose | Nominee Shareholder |
Subsidiary 11 | |
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 | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Net income | $ 357 | $ (3,997) | |
Working capital | (31,068) | ||
Accumulated deficit | $ (173,959) | $ (174,270) |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Inventory | $ 4,127 | $ 3,347 |
Gold Held on Carbon | ||
Inventory | 1,595 | 1,422 |
Silver and Gold Concentrate | ||
Inventory | 642 | 157 |
Materials and Supplies | ||
Inventory | $ 1,890 | $ 1,768 |
Mineral Properties (Details)
Mineral Properties (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Mineral properties, beginning | $ 8,610 | $ 2,525 | $ 2,525 |
Reverse acquisition (Note 26) | 0 | 7,865 | |
Additions | 0 | 216 | |
Exchange differences | 0 | (1,996) | |
Mineral properties, ending | 8,610 | 8,610 | |
Mining Assets | |||
Mineral properties, beginning | 6,830 | 1,780 | 1,780 |
Reverse acquisition (Note 26) | 0 | 6,830 | |
Additions | 0 | 216 | |
Exchange differences | 0 | (1,996) | |
Mineral properties, ending | 6,830 | 6,830 | |
Surface Rights Acquired | |||
Mineral properties, beginning | 1,780 | 745 | 745 |
Reverse acquisition (Note 26) | 0 | 1,035 | |
Additions | 0 | 0 | |
Exchange differences | 0 | 0 | |
Mineral properties, ending | $ 1,780 | $ 1,780 | $ 1,780 |
Asset Retirement Obligation (D
Asset Retirement Obligation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Asset Retirement Obligation Disclosure [Abstract] | ||
Asset retirement obligation, beginning | $ 2,812 | $ 552 |
Reverse acquisition (Note 26) | 0 | 739 |
Change in estimate | (95) | 1,342 |
Accretion expense | 162 | 179 |
Asset retirement obligation, ending | $ 2,879 | $ 2,812 |
Mining Rights (Details)
Mining Rights (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Mining rights, beginning | $ 16,997 | $ 16,475 |
Amortization | (25) | (100) |
Exchange differences | (1,124) | 622 |
Mining rights, ending | 15,848 | 16,997 |
Fomicruz Agreement | ||
Mining rights, beginning | 3,188 | 3,288 |
Amortization | (25) | (100) |
Exchange differences | 0 | 0 |
Mining rights, ending | 3,163 | 3,188 |
Minera Aquiline Argentina | ||
Mining rights, beginning | 13,809 | 13,187 |
Amortization | 0 | 0 |
Exchange differences | (1,124) | 622 |
Mining rights, ending | $ 12,685 | $ 13,809 |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Property, plant, and equipment, cost, beginning | $ 22,765 | $ 20,155 |
Reverse acquisition (Note 26) | 0 | 2,210 |
Additions | 271 | 777 |
Disposals | (177) | (377) |
Transfers | 0 | 0 |
Property, plant, and equipment, cost, ending | 22,859 | 22,765 |
Accumulated depreciation, beginning | 12,257 | 10,677 |
Disposals | (163) | (264) |
Depreciation | 427 | 1,844 |
Accumulated depreciation, ending | 12,521 | 12,257 |
Net book value | 10,338 | 10,508 |
Plant | ||
Property, plant, and equipment, cost, beginning | 7,836 | 5,901 |
Reverse acquisition (Note 26) | 0 | 1,732 |
Additions | 24 | 203 |
Disposals | 0 | 0 |
Transfers | 0 | 0 |
Property, plant, and equipment, cost, ending | 7,860 | 7,836 |
Accumulated depreciation, beginning | 5,905 | 5,761 |
Disposals | 0 | 0 |
Depreciation | 54 | 144 |
Accumulated depreciation, ending | 5,959 | 5,905 |
Net book value | 1,901 | 1,931 |
Buildings | ||
Property, plant, and equipment, cost, beginning | 299 | 230 |
Reverse acquisition (Note 26) | 0 | 69 |
Additions | 0 | 0 |
Disposals | 0 | 0 |
Transfers | 0 | 0 |
Property, plant, and equipment, cost, ending | 299 | 299 |
Accumulated depreciation, beginning | 42 | 33 |
Disposals | 0 | 0 |
Depreciation | 3 | 9 |
Accumulated depreciation, ending | 45 | 42 |
Net book value | 254 | 257 |
Vehicles and Equipment | ||
Property, plant, and equipment, cost, beginning | 13,891 | 13,458 |
Reverse acquisition (Note 26) | 0 | 409 |
Additions | 59 | 244 |
Disposals | (177) | (326) |
Transfers | 0 | 106 |
Property, plant, and equipment, cost, ending | 13,773 | 13,891 |
Accumulated depreciation, beginning | 6,310 | 4,883 |
Disposals | (163) | (264) |
Depreciation | 370 | 1,691 |
Accumulated depreciation, ending | 6,517 | 6,310 |
Net book value | 7,256 | 7,581 |
Improvements and Advances | ||
Property, plant, and equipment, cost, beginning | 739 | 566 |
Reverse acquisition (Note 26) | 0 | 0 |
Additions | 188 | 330 |
Disposals | 0 | (51) |
Transfers | 0 | (106) |
Property, plant, and equipment, cost, ending | 927 | 739 |
Accumulated depreciation, beginning | 0 | 0 |
Disposals | 0 | 0 |
Depreciation | 0 | 0 |
Accumulated depreciation, ending | 0 | 0 |
Net book value | $ 927 | $ 739 |
Receivables (Details)
Receivables (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Receivables | $ 1,913 | $ 1,516 |
Receivable from Sale | ||
Receivables | 152 | 150 |
Value Added Tax ("VAT") Recoverable | ||
Receivables | 1,382 | 880 |
Other Receivables | ||
Receivables | $ 379 | $ 486 |
Other Receivables (Details)
Other Receivables (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Other receivables | $ 3,126 | $ 3,814 |
Value Added Tax ("VAT") Recoverable | ||
Other receivables | 665 | 1,226 |
Other Receivables | ||
Other receivables | $ 2,461 | $ 258 |
Bank Indebtedness (Details Narr
Bank Indebtedness (Details Narrative) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Disclosure [Abstract] | ||
Bank indebtedness | $ 11,578 | $ 14,989 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Payables and Accruals [Abstract] | ||
Trade accounts payable and accrued liabilities | $ 4,763 | $ 5,102 |
Other accruals | 1,193 | 890 |
Accounts payables due to related parties (Note 21) | 6,842 | 6,717 |
Total | $ 12,798 | $ 12,709 |
Loan Payable and Current Port_3
Loan Payable and Current Portion of Long-term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Loans Payable [Abstract] | ||
Current portion of long-term debt (Note 17) | $ 202 | $ 200 |
Current portion of long-term debt with related parties (note 17) | 13,120 | 0 |
Leases payable | 109 | 134 |
Total | $ 13,431 | $ 334 |
Long-term Debt (Details)
Long-term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Accrued interest on debt | $ 1,152 | $ 946 |
Long-term debt | 15,090 | 12,220 |
Less current portion | (13,322) | (200) |
Long-term debt, noncurrent | 1,768 | 12,020 |
Long-term Debt 1 | ||
Long-term debt, gross | 10,458 | 7,908 |
Long-term Debt 2 | ||
Long-term debt, gross | 501 | 512 |
Long-term Debt 3 | ||
Long-term debt, gross | 1,034 | 990 |
Long-term Debt 4 | ||
Long-term debt, gross | 861 | 826 |
Long-term Debt 5 | ||
Long-term debt, gross | $ 1,084 | $ 1,038 |
Long-term Debt (Details 1)
Long-term Debt (Details 1) $ in Thousands | Mar. 31, 2020USD ($) |
Long-term Debt, Unclassified [Abstract] | |
2020 | $ 195 |
2021 | 13,327 |
2022 | $ 1,568 |
Net Income (Loss) per Share (De
Net Income (Loss) per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Net income (loss) | $ 357 | $ (3,997) |
Weighted average shares outstanding - basic and diluted | 317,943,990 | 254,355,192 |
Net income (loss) per share | $ 0 | $ (.02) |
Capital Stock (Details)
Capital Stock (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Common stock, value, beginning | $ 2,588 | |
Common stock, value, ending | $ 2,588 | $ 2,588 |
Capital Stock | ||
Common stock, shares, beginning | 317,943,990 | 254,355,192 |
Common stock, value, beginning | $ 2,588 | $ 301 |
Shares issued in reverse acquisition (Note 26), shares | 0 | 63,588,798 |
Shares issued in reverse acquisition (Note 26), value | $ 0 | $ 2,287 |
Common stock, shares, ending | 317,943,990 | 317,943,990 |
Common stock, value, ending | $ 2,588 | $ 2,588 |
Capital Stock (Details 1)
Capital Stock (Details 1) - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | ||
Number of options outstanding, beginning | 7,650,000 | 1,706,830 |
Granted | 0 | 7,650,000 |
Expiration of stock options | 0 | (1,706,830) |
Number of options outstanding, ending | 7,650,000 | 7,650,000 |
Weighted average exercise price outstanding, beginning | $ .065 | $ 13.896 |
Granted | .00 | 0.065 |
Expiration of stock options | (.00) | (13.896) |
Weighted average exercise price outstanding, ending | $ .065 | $ .065 |
Capital Stock (Details 2)
Capital Stock (Details 2) - $ / shares | 3 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |||
Range of exercise prices | .065 | ||
Number oustanding | 7,650,000 | 7,650,000 | 1,706,830 |
Weighted average life (years) | 4 years 8 months 27 days | ||
Weighted average exercise price | $ .065 | $ .065 | $ 13.896 |
Number exercisable | 7,650,000 |
Capital Stock (Details 3)
Capital Stock (Details 3) | 3 Months Ended |
Mar. 31, 2020$ / shares | |
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 | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | ||
Loans or advances | $ 2,882 | $ 2,006 | ||
A Company Controlled by a Director (1) | Admin, Office, and Interest Expenses | ||||
Remuneration, fees or interest expense | [1] | 95 | 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] | 6,469 | $ 6,374 | |
Included in loan payable and long-term debt | [1] | 0 | 0 | |
A Company Controlled by a Director | Salaries and Wages | ||||
Remuneration, fees or interest expense | 145 | 346 | ||
Loans or advances | 2,550 | 7,908 | ||
Remuneration, fees, or interest payments | 0 | 33 | ||
Loan payments | 0 | 0 | ||
Included in accounts payable | 255 | 227 | ||
Included in loan payable and long-term debt | 10,830 | 8,163 | ||
Directors | Salaries and Wages | ||||
Remuneration, fees or interest expense | 65 | 337 | ||
Loans or advances | 0 | 0 | ||
Remuneration, fees, or interest payments | 63 | 317 | ||
Loan payments | 0 | 0 | ||
Included in accounts payable | 118 | 116 | ||
Included in loan payable and long-term debt | 0 | 0 | ||
Directors | Loans | ||||
Remuneration, fees or interest expense | 0 | 0 | ||
Loans or advances | 347 | 347 | ||
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 | $ 3,760 | $ 3,545 | ||
[1] | Balances owed to related parties were acquired as part of the reverse acquisition (Note 24) |
Administrative Expenses (Detail
Administrative Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Administrative expenses | $ 1,115 | $ 2,312 |
General and Administrative | ||
Administrative expenses | 739 | 1,869 |
Argentina Statutory Taxes | ||
Administrative expenses | 100 | 102 |
Professional Fees | ||
Administrative expenses | 68 | 199 |
Operating Leases | ||
Administrative expenses | 21 | 24 |
Directors' Remuneration | ||
Administrative expenses | 59 | 71 |
Gain on Sale of Property, Plant and Equipment | ||
Administrative expenses | (5) | (14) |
Depreciation of Property, Plant and Equipment | ||
Administrative expenses | 427 | 563 |
Depreciation Allocated to Inventory | ||
Administrative expenses | (392) | (541) |
Amortization of Mining Rights | ||
Administrative expenses | 25 | 25 |
Consulting Fees | ||
Administrative expenses | 98 | 11 |
Transaction Taxes Expenses (Income) | ||
Administrative expenses | $ (25) | $ 3 |
Financial Instruments (Details)
Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | |
Other financial assets (Level 1) | $ 240 | $ 334 | |
Bank indebtedness | 11,578 | 14,989 | |
Accounts payable and accrued liabilities | 12,798 | 12,709 | |
Loan payable and current portion of long-term debt | 311 | 334 | |
Fair Value | |||
Cash (Level 1) | 699 | 685 | |
Other financial assets (Level 1) | 240 | 334 | |
Receivables and other receivables | [1] | 2,992 | 3,224 |
Bank indebtedness | 11,578 | 14,989 | |
Accounts payable and accrued liabilities | 12,798 | 12,709 | |
Loan payable and current portion of long-term debt | 13,431 | 334 | |
Long-term debt | 1,768 | 13,026 | |
Carrying Amount | |||
Cash (Level 1) | 699 | 685 | |
Other financial assets (Level 1) | 240 | 334 | |
Receivables and other receivables | [1] | 2,992 | 3,224 |
Bank indebtedness | 11,578 | 14,989 | |
Accounts payable and accrued liabilities | 12,798 | 12,709 | |
Loan payable and current portion of long-term debt | 13,729 | 334 | |
Long-term debt | $ 2,051 | $ 13,026 | |
[1] | Amounts exclude value added tax (VAT) recoverable of $2,047 and $2,106 as at March 31, 2020 and December 31, 2019. |
Financial Instruments (Details
Financial Instruments (Details Narrative) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financial Instruments, Owned, at Fair Value [Abstract] | ||
Cash | $ 699 | $ 685 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue | $ 5,215 | $ 4,871 |
Cost of sales | (2,448) | (6,823) |
Gross profit | 2,767 | (1,952) |
Operating Income (Expenses): | ||
Exploration expenses | (694) | (842) |
Administrative expense | (1,115) | (2,312) |
Depreciation expense | (60) | |
Impairment of mineral properties | 0 | 0 |
Share-based payments expense | (85) | (21) |
Interest expense | (717) | (431) |
Total operating expense | (2,611) | (3,606) |
Other Income/(Expenses) | ||
Interest income | 55 | 28 |
Gain/(loss) on foreign exchange | (5) | (40) |
Accretion expense | (162) | (21) |
Realized gain (loss) on investment | 728 | 0 |
Total other income/(expenses) | 616 | (33) |
Income (loss) - before income taxes | 772 | (5,591) |
Income tax benefit (expense) | (415) | 1,594 |
Net income (loss) | 357 | (3,997) |
Lomada Project | ||
Revenue | 1,337 | 1,265 |
Cost of sales | (500) | (1,616) |
Gross profit | 837 | (351) |
Operating Income (Expenses): | ||
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 | (104) | (12) |
Realized gain (loss) on investment | 0 | 0 |
Total other income/(expenses) | (104) | (12) |
Income (loss) - before income taxes | 733 | (363) |
Income tax benefit (expense) | 0 | 0 |
Net income (loss) | 733 | (363) |
Cap-Oeste Project | ||
Revenue | 3,447 | 3,606 |
Cost of sales | (1,559) | (5,207) |
Gross profit | 1,848 | (1,601) |
Operating Income (Expenses): | ||
Exploration expenses | (141) | 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 | (141) | 0 |
Other Income/(Expenses) | ||
Interest income | 0 | 0 |
Gain/(loss) on foreign exchange | 0 | 0 |
Accretion expense | (8) | (9) |
Realized gain (loss) on investment | 0 | 0 |
Total other income/(expenses) | (8) | (9) |
Income (loss) - before income taxes | 1,699 | (1,610) |
Income tax benefit (expense) | 0 | 0 |
Net income (loss) | 1,699 | (1,610) |
Calcatreu Project | ||
Revenue | 0 | 0 |
Cost of sales | 0 | 0 |
Gross profit | 0 | 0 |
Operating Income (Expenses): | ||
Exploration expenses | (247) | (604) |
Administrative expense | (51) | (31) |
Depreciation expense | (4) | (5) |
Impairment of mineral properties | 0 | 0 |
Share-based payments expense | 0 | 0 |
Interest expense | 0 | 0 |
Total operating expense | (302) | (640) |
Other Income/(Expenses) | ||
Interest income | 1 | 0 |
Gain/(loss) on foreign exchange | 237 | 26 |
Accretion expense | 0 | 0 |
Realized gain (loss) on investment | 0 | 0 |
Total other income/(expenses) | 238 | 26 |
Income (loss) - before income taxes | (64) | (614) |
Income tax benefit (expense) | (17) | 0 |
Net income (loss) | (81) | (614) |
Martha and La Josefina Projects | ||
Revenue | 431 | 0 |
Cost of sales | (349) | 0 |
Gross profit | 82 | 0 |
Operating Income (Expenses): | ||
Exploration expenses | (40) | 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 | (40) | 0 |
Other Income/(Expenses) | ||
Interest income | 0 | 0 |
Gain/(loss) on foreign exchange | 0 | 0 |
Accretion expense | (50) | 0 |
Realized gain (loss) on investment | 0 | 0 |
Total other income/(expenses) | (50) | 0 |
Income (loss) - before income taxes | (8) | 0 |
Income tax benefit (expense) | 0 | 0 |
Net income (loss) | (81) | 0 |
Argentina, Uruguay and Chile | ||
Revenue | 0 | 0 |
Cost of sales | 0 | 0 |
Gross profit | 0 | 0 |
Operating Income (Expenses): | ||
Exploration expenses | (266) | 0 |
Administrative expense | (672) | (209) |
Depreciation expense | (31) | (25) |
Impairment of mineral properties | 0 | 0 |
Share-based payments expense | 0 | (21) |
Interest expense | (188) | (148) |
Total operating expense | (1,157) | (403) |
Other Income/(Expenses) | ||
Interest income | 54 | 0 |
Gain/(loss) on foreign exchange | (411) | (350) |
Accretion expense | 0 | 0 |
Realized gain (loss) on investment | 728 | 0 |
Total other income/(expenses) | 371 | (350) |
Income (loss) - before income taxes | (786) | (753) |
Income tax benefit (expense) | (398) | 0 |
Net income (loss) | (1,184) | (753) |
UK | ||
Revenue | 0 | 0 |
Cost of sales | 0 | 0 |
Gross profit | 0 | 0 |
Operating Income (Expenses): | ||
Exploration expenses | 0 | 0 |
Administrative expense | (154) | (18) |
Depreciation expense | (25) | 0 |
Impairment of mineral properties | 0 | 0 |
Share-based payments expense | 0 | 0 |
Interest expense | (199) | 0 |
Total operating expense | (378) | (18) |
Other Income/(Expenses) | ||
Interest income | 0 | 0 |
Gain/(loss) on foreign exchange | (660) | 319 |
Accretion expense | 0 | 0 |
Realized gain (loss) on investment | 0 | 0 |
Total other income/(expenses) | (660) | 319 |
Income (loss) - before income taxes | (1,038) | 301 |
Income tax benefit (expense) | 0 | 0 |
Net income (loss) | (1,038) | 301 |
North America | ||
Revenue | 0 | 4,871 |
Cost of sales | 0 | (6,823) |
Gross profit | 0 | (1,952) |
Operating Income (Expenses): | ||
Exploration expenses | 0 | (842) |
Administrative expense | (178) | (2,265) |
Depreciation expense | 0 | (47) |
Impairment of mineral properties | 0 | 0 |
Share-based payments expense | (85) | (21) |
Interest expense | (330) | (431) |
Total operating expense | (593) | (3,606) |
Other Income/(Expenses) | ||
Interest income | 0 | 28 |
Gain/(loss) on foreign exchange | 829 | (40) |
Accretion expense | 0 | (21) |
Realized gain (loss) on investment | 0 | 0 |
Total other income/(expenses) | 829 | (33) |
Income (loss) - before income taxes | 236 | (5,591) |
Income tax benefit (expense) | 0 | 1,594 |
Net income (loss) | $ 236 | (3,997) |
COSE Project | ||
Revenue | 0 | |
Cost of sales | 0 | |
Gross profit | 0 | |
Operating Income (Expenses): | ||
Exploration expenses | (238) | |
Administrative expense | (2,007) | |
Depreciation expense | (17) | |
Impairment of mineral properties | 0 | |
Share-based payments expense | 0 | |
Interest expense | (283) | |
Total operating expense | (2,545) | |
Other Income/(Expenses) | ||
Interest income | 28 | |
Gain/(loss) on foreign exchange | (35) | |
Accretion expense | 0 | |
Realized gain (loss) on investment | 0 | |
Total other income/(expenses) | (7) | |
Income (loss) - before income taxes | (2,552) | |
Income tax benefit (expense) | 1,594 | |
Net income (loss) | $ (958) |
Segment Reporting (Details 1)
Segment Reporting (Details 1) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Total assets | $ 52,342 | $ 54,789 |
Total liabilities | 44,339 | 45,613 |
Cap-Oeste Project | ||
Total assets | 10,814 | 9,116 |
Total liabilities | 2,735 | 2,629 |
Lomada Project | ||
Total assets | 1,894 | 2,996 |
Total liabilities | 2,102 | 1,979 |
Calcatreu Project | ||
Total assets | 16,473 | 14,678 |
Total liabilities | 1,519 | 1,591 |
Martha and La Josefina Projects | ||
Total assets | 10,697 | 12,106 |
Total liabilities | 2,145 | 5,475 |
Argentina and Chile | ||
Total assets | 7,632 | 11,263 |
Total liabilities | 3,628 | 3,875 |
UK | ||
Total assets | 21 | 177 |
Total liabilities | 17,439 | 20,240 |
North America | ||
Total assets | 4,811 | 4,453 |
Total liabilities | $ 14,771 | $ 9,824 |
Reverse Acquisition (Details)
Reverse Acquisition (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020USD ($) | ||
Business Combinations [Abstract] | ||
Fair value of the Company's shares | $ 2,287 | [1] |
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). |