Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2022 shares | |
Document Information | |
Document Type | 40-F |
Amendment Flag | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2022 |
Entity File Number | 001-39766 |
Entity Registrant Name | ORLA MINING LTD. |
Entity Incorporation, State or Country Code | Z4 |
Entity Tax Identification Number | 00-0000000 |
Entity Address, Address Line One | Suite 1010, 1075 West Georgia Street |
Entity Address, City or Town | Vancouver |
Entity Address, State or Province | BC |
Entity Address, Postal Zip Code | V6E 3C9 |
Entity Address, Country | CA |
City Area Code | 604 |
Local Phone Number | 564-1852 |
Title of 12(b) Security | Common Shares, no par value |
Trading Symbol | ORLA |
Security Exchange Name | NYSE |
Annual Information Form | true |
Audited Annual Financial Statements | true |
Entity Common Stock, Shares Outstanding | 305,809,108 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Emerging Growth Company | true |
Entity EX Transition Period | false |
Icfr Auditor Attestation Flag | false |
Entity Central Index Key | 0001680056 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2022 |
Auditor Name | Ernst & Young LLP |
Auditor Location | Vancouver, Canada |
Auditor Firm ID | 1263 |
Business Contact [Member] | |
Document Information | |
Entity Address, Address Line One | 28 Liberty Street |
Entity Address, City or Town | New York |
Entity Address, State or Province | NY |
Entity Address, Postal Zip Code | 10005 |
City Area Code | 212 |
Local Phone Number | 894-8940 |
Contact Personnel Name | C T Corporation System |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 96,278 | $ 20,516 |
Trade and other receivables | 365 | 306 |
Value added taxes recoverable | 8,659 | 16,776 |
Inventory | 22,446 | 9,657 |
Prepaid expenses | 2,824 | 1,090 |
Restricted cash | 2,290 | |
Total current assets | 132,862 | 48,345 |
Non-current financial assets | ||
Restricted cash | 1,142 | 3,680 |
Value added taxes recoverable | 5,229 | 7,444 |
Long-term inventory | 4,096 | 1,299 |
Property, plant and equipment | 224,416 | 7,635 |
Mineral properties under construction | 213,749 | |
Exploration and evaluation properties | 242,743 | 82,743 |
Deferred tax asset | 2,405 | |
Other non-current assets | 923 | |
TOTAL ASSETS | 613,816 | 364,895 |
Current liabilities | ||
Trade and other payables | 11,708 | 6,816 |
Accrued liabilities | 7,967 | 5,659 |
Current portion of long term debt | 45,000 | 25,293 |
Taxes payable | 33,102 | |
Total current liabilities | 97,777 | 37,768 |
Non-Current | ||
Lease obligations | 2,327 | 1,029 |
Long term debt | 100,795 | 136,060 |
Deferred revenue | 7,500 | |
Site closure provisions | 8,261 | 5,460 |
Other long term liabilities | 172 | 161 |
TOTAL LIABILITIES | 216,832 | 180,478 |
SHAREHOLDERS' EQUITY | ||
Share capital | 445,316 | 269,198 |
Reserves | 24,009 | 29,306 |
Accumulated other comprehensive income | (1,583) | 2,441 |
Accumulated deficit | (70,758) | (116,528) |
TOTAL SHAREHOLDERS' EQUITY | 396,984 | 184,417 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 613,816 | $ 364,895 |
Consolidated Statements of Loss
Consolidated Statements of Loss and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Consolidated Statements of Loss and Comprehensive Loss. | ||
REVENUE | $ 193,230 | $ 4,124 |
COST OF SALES | ||
Operating costs | (45,597) | (1,280) |
Depletion and depreciation | (14,953) | |
Royalties | (4,819) | (111) |
Cost of sales | (65,369) | (1,391) |
EARNINGS FROM MINING OPERATIONS | 127,861 | 2,733 |
EXPLORATION AND EVALUATION EXPENSES | (18,939) | (15,108) |
GENERAL AND ADMINISTRATIVE EXPENSES | (10,913) | (7,207) |
OTHER | ||
Interest income | 2,167 | 341 |
Depreciation | (277) | (154) |
Share based payments | (2,447) | (2,329) |
Interest and accretion expense | (8,890) | (1,637) |
Loss on early settlement of project loan | (13,219) | |
Foreign exchange gain (loss) | 3,014 | (3,726) |
Other gain (loss) | 41 | 809 |
Other expenses (income) | (19,611) | (6,696) |
INCOME (LOSS) BEFORE TAXES | 78,398 | (26,278) |
Income taxes | (32,628) | |
INCOME (LOSS) FOR THE PERIOD | 45,770 | (26,278) |
Items that may in future periods be reclassified to profit or loss: | ||
Foreign currency differences arising on translation | (4,024) | (561) |
Items that will not be reclassified to profit or loss: | ||
TOTAL COMPREHENSIVE INCOME (LOSS) | $ 41,746 | $ (26,839) |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - Basic | 272,202 | 241,379 |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - Diluted | 292,816 | 241,379 |
EARNINGS (LOSS) PER SHARE - Basic | $ 0.17 | $ (0.11) |
EARNINGS (LOSS) PER SHARE - Diluted | $ 0.16 | $ (0.11) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
OPERATING ACTIVITIES | ||
Income (loss) for the year | $ 45,770 | $ (26,278) |
Adjustments for: | ||
Interest and accretion | 6,723 | 1,296 |
Loss on early settlement of project loan | 13,219 | |
Income tax expense | 32,628 | |
Income taxes paid | (3,150) | |
Interest income received | 2,167 | 458 |
Payment of cash settled RSUs and DSUs | (2,049) | |
Adjustments for items not affecting cash: | ||
Depreciation and depletion | 15,230 | 154 |
Share based payments | 2,447 | 2,329 |
Unrealized foreign exchange loss (gain) | (1,862) | 3,921 |
Other | (31) | 23 |
Cash provided by (used in) operating activities before changes in non-cash working capital | 111,092 | (18,097) |
Changes in non-cash working capital | (15,781) | (6,645) |
Cash provided by (used in) operating activities | 95,311 | (24,742) |
INVESTING ACTIVITIES | ||
Purchase of plant and equipment | (5,726) | (3,302) |
Deposits and other payments on long term assets | (855) | |
Mineral properties and related construction | (12,252) | (92,939) |
Payment pursuant to the Layback Agreement | (15,000) | |
Acquisition of Gold Standard, net of cash received | (1,226) | |
Restricted cash and environmental bonding | 3,176 | (979) |
Value added taxes received | 18,527 | (16,046) |
Cash provided by (used in) investing activities | (13,356) | (113,266) |
FINANCING ACTIVITIES | ||
Advances received on (payments of) the Camino Rojo project loan | (127,500) | 50,000 |
Proceeds from issuance of common shares, net of issuance costs | (261) | 33,442 |
Payment of the Newmont loan | (10,836) | |
Advances received from Credit Facility | 130,000 | |
Principal repayments of the Credit Facility | (5,550) | |
Proceeds from exercise of stock options and warrants | 20,024 | 14,754 |
Transaction costs related to financing facilities | (1,866) | (289) |
Interest paid | (8,816) | (11,307) |
Lease payments | (574) | (649) |
Cash provided by financing activities | (5,379) | 85,951 |
Effects of exchange rate changes on cash | (814) | 393 |
Net increase (decrease) in cash | 75,762 | (51,664) |
Cash, beginning of period | 20,516 | 72,180 |
CASH, END OF YEAR | $ 96,278 | $ 20,516 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity shares in Thousands, Unit_Standard_pure_AvEqZTfZ1k67vlYiTk3ZUw in Thousands, $ in Thousands | Common shares USD ($) shares | Reserves USD ($) | Share based payments reserve USD ($) | Warrants reserve USD ($) | Accumulated Other Comprehensive Income USD ($) | Retained earnings (deficit) USD ($) | USD ($) |
Equity at beginning of period at Dec. 31, 2020 | $ 217,948 | $ 29,881 | $ 8,486 | $ 21,395 | $ 3,002 | $ (90,250) | $ 160,581 |
Shares at beginning of period at Dec. 31, 2020 | shares | 229,286 | ||||||
Shares issued pursuant to a financing | $ 34,442 | 34,442 | |||||
Shares issued pursuant to a financing (in shares) | shares | 9,085 | ||||||
Share issued for property payments | $ 150 | 150 | |||||
Share issued for property payments (in shares) | shares | 33 | ||||||
Share issuance costs | $ (1,000) | (1,000) | |||||
Warrants exercised | $ 16,419 | (2,140) | (2,140) | 14,279 | |||
Warrants exercised (in shares) | shares | 8,060 | ||||||
Options exercised | $ 752 | (277) | (277) | 475 | |||
Options exercised (in shares) | 687 | ||||||
RSUs redeemed | $ 487 | (487) | (487) | ||||
RSUs redeemed (in shares) | shares | 449 | ||||||
Share based payments | 2,329 | 2,329 | 2,329 | ||||
Income (loss) for the year | (26,278) | (26,278) | |||||
Other comprehensive income | (561) | (561) | |||||
Equity at end of period at Dec. 31, 2021 | $ 269,198 | 29,306 | 10,051 | 19,255 | 2,441 | (116,528) | 184,417 |
Shares at end of period at Dec. 31, 2021 | shares | 247,600 | ||||||
Shares issued pursuant to a financing | $ 149,363 | 149,363 | |||||
Shares issued pursuant to a financing (in shares) | shares | 43,689 | ||||||
Share issuance costs | $ (261) | (261) | |||||
Replacement options issued | 1,647 | 1,647 | 1,647 | ||||
RSUs settled in cash | (1,320) | (403) | (403) | (1,723) | |||
RSUs reclassified to cash settled | (310) | (310) | (310) | ||||
DSUs redeemed | $ 165 | (165) | (165) | ||||
DSUs redeemed (in shares) | shares | 112 | ||||||
DSUs settled in cash | $ (167) | (159) | (159) | (326) | |||
Warrants exercised | $ 21,334 | (5,143) | (5,143) | 16,191 | |||
Warrants exercised (in shares) | shares | 10,697 | ||||||
Options exercised | $ 6,866 | (3,033) | (3,033) | 3,833 | |||
Options exercised (in shares) | 3,675 | ||||||
RSUs redeemed | $ 138 | (138) | (138) | ||||
RSUs redeemed (in shares) | shares | 36 | ||||||
Share based payments | 2,407 | 2,407 | 2,407 | ||||
Income (loss) for the year | 45,770 | 45,770 | |||||
Other comprehensive income | (4,024) | (4,024) | |||||
Equity at end of period at Dec. 31, 2022 | $ 445,316 | $ 24,009 | $ 9,897 | $ 14,112 | $ (1,583) | $ (70,758) | $ 396,984 |
Shares at end of period at Dec. 31, 2022 | shares | 305,809 |
CORPORATE INFORMATION AND NATUR
CORPORATE INFORMATION AND NATURE OF OPERATIONS | 12 Months Ended |
Dec. 31, 2022 | |
CORPORATE INFORMATION AND NATURE OF OPERATIONS | |
CORPORATE INFORMATION AND NATURE OF OPERATIONS | 1. Orla Mining Ltd. was incorporated in Alberta in 2007 and was continued into British Columbia in 2010 and subsequently into Ontario under the Business Corporations Act (Ontario) in 2014. In 2016, the Company was continued as a federal company under the Canada Business Corporations Act. The “Company”, “Orla”, “we”, and “our” refer to Orla Mining Ltd. and its subsidiaries. The registered office of the Company is located at Suite 1010, 1075 West Georgia Street, Vancouver, Canada. The Company is engaged in the acquisition, exploration, development, and exploitation of mineral properties, and holds the Camino Rojo gold and silver mine in Zacatecas State, Mexico, Cerro Quema gold project in Panama, and the South Railroad and Lewis gold projects in Nevada, USA. These consolidated financial statements have been prepared on the assumption that the Company will continue as a going concern, meaning it will continue in operation for the foreseeable future and will be able to realize assets and discharge liabilities in the ordinary course of operations. Different bases of measurement may be appropriate if the Company is not expected to continue operations for the foreseeable future. The Company declared commercial production at Camino Rojo, effective April 1, 2022. |
BASIS OF PREPARATION
BASIS OF PREPARATION | 12 Months Ended |
Dec. 31, 2022 | |
BASIS OF PREPARATION | |
BASIS OF PREPARATION | 2. (a) Statement of compliance and basis of presentation We have prepared these consolidated financial statements of the Company in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). The consolidated financial statements have been prepared on the historical cost basis, except for certain financial instruments that are measured at fair values at the end of each reporting period, as explained in the accounting policies below. The consolidated financial statements are presented in United States dollars. On March 19, 2023, the Board of Directors approved these consolidated financial statements for issuance. (b) Basis of consolidation These consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly owned. Where necessary, we have made adjustments to the financial statements of subsidiaries to bring their accounting policies in line with the accounting policies of the consolidated group. We have eliminated all material intercompany transactions, balances, revenues, and expenses upon consolidation. Subsidiaries are included in the consolidated financial results of the Company from the effective date of acquisition or control and up to the effective date of disposition or loss of control. Control is achieved when the Company has power over the investee, is exposed to or has rights to variable returns from its involvement with an investee and has the ability to affect those returns through its power over the investee. Orla Mining Ltd. is the ultimate parent entity of the group. At December 31, 2022 and 2021, the principal operating subsidiaries of the Company, their geographic locations, and the ownership interests held by the Company, were as follows: Ownership Name Principal activity Dec 31, 2022 Dec 31, 2021 Location Minera Camino Rojo SA de CV Production 100 % 100 % Mexico Minera Cerro Quema SA Exploration 100 % 100 % Panama Gold Standard Ventures Corp. Holding company 100 % — Canada Gold Standard Ventures (US) Inc. Exploration 100 % — USA Madison Enterprises Inc. Exploration 100 % — USA Monitor Gold Corporation Exploration 100 % 100 % USA |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
SIGNIFICANT ACCOUNTING POLICIES | |
SIGNIFICANT ACCOUNTING POLICIES | 3. We have applied the accounting policies set out below consistently to all periods presented in these financial statements. The significant judgements we made in applying the Company’s accounting policies and the key sources of estimation uncertainty arising in the preparation of these consolidated financial statements are discussed in note 4. (a) (i) Foreign currency transactions Transactions in foreign currencies are translated into the respective functional currencies of each entity at the exchange rates in effect on the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rate at the reporting date. Non-monetary assets and liabilities that are measured at fair value in a foreign currency are translated into the functional currency at the exchange rate when the fair value was determined. Non-monetary items that are measured at historical cost in a foreign currency are translated at the exchange rate in effect at the date of the transaction. Foreign currency differences are generally recognized in profit or loss. (ii) Translation to presentation currency These consolidated financial statements are presented in United States dollars (“US dollar”, or “USD”). The presentation currency differs from the functional currency of the parent company and some of its subsidiaries (note 3(a)). We translate the assets and liabilities of entities with functional currencies other than the US dollar into US dollars at the official central bank exchange rates in effect on the reporting date. The results of operations of those entities are translated into US dollars at the average exchange rates in effect during the reporting period. We recognize the foreign currency differences which arise from translation in other comprehensive (loss) income. When we dispose of an entity in its entirety, or partially such that we have lost control, we reclassify the cumulative amount in the translation reserve related to that operation to profit or loss as part of the gain or loss on disposal. (iii) The functional currency of each of the Company’s principal operating subsidiaries, all of which are wholly owned, is the United States dollar. The functional currency of the parent company, Orla Mining Ltd., is the Canadian dollar. The Company’s principal operating subsidiaries are Minera Camino Rojo SA de CV, Minera Cerro Quema SA, Gold Standard Ventures Corp., Gold Standard Ventures (US) Inc., Madison Enterprises (Nevada) Inc., and Monitor Gold Corporation. Change in functional currency As a result of the continued advancement of Camino Rojo and the resulting changes in underlying transactions, events, and circumstances, we reassessed the functional currency of Minera Camino Rojo SA de CV. We determined that the functional currency of Minera Camino Rojo SA de CV is the United States dollar. Consequently, the functional currency for this subsidiary changed from Mexican pesos to United States dollars effective (b) Cash and cash equivalents Cash and cash equivalents include cash on hand, demand deposits, and money market instruments, with maturities from the date of acquisition of three months or less, which are readily convertible to known amounts of cash and are subject to insignificant changes in value. (c) Restricted cash Restricted cash consists of amounts lodged with government bodies or their designated banking institutions in support of mandated environmental, permitting, or employee retirement obligations. (d) Inventories include production inventory, and materials and supplies inventory. All inventories are valued at the lower of average cost or net realizable market value (“NRV”). NRV is calculated using the estimated price at the time of sale based on prevailing and forecast metal prices less estimated future production costs to convert the inventory into saleable form and associated selling costs. Any write-downs of inventory to its NRV are included in cost of sales in the period. If there is a subsequent increase in the value of inventory, the previous write-downs to NRV are reversed to the extent that the related inventory has not yet been sold. We classify inventory we do not expect to use within one year as non-current. (i) Production inventory consists of stockpiled ore, in-process inventory, and finished goods. These are valued at the lower of weighted average cost and estimated NRV. The value of all production inventories includes direct production costs and attributable overhead and depreciation incurred to bring the materials to their current point in the processing cycle. Stockpiled ore represents unprocessed ore that has been extracted from the mine but not yet processed. The value of stockpiled ore is based on the costs incurred, including depreciation, in bringing the ore to the stockpiles. Costs are added to the stockpiled ore based on current mining costs per recoverable ounce and are removed at the average cost per recoverable ounce in the stockpile. We classify stockpiled ore that we do not expect to process within the next twelve months as non-current. In-process inventory represents ore that is being treated on the leach pads and in the processing plant to extract the contained metals and to convert them to a saleable form. Estimates of recoverable metal in the leach pads are calculated based on the quantities of ore placed on the leach pads (measured tonnes added to the leach pads), the grades of ore placed on the leach pads (based on assays), and estimated recovery percentages (based on estimated recovery assumptions). The nature of the leaching process inherently limits the ability to precisely monitor leach pad inventory levels. Accordingly, we refine estimates based on engineering studies or actual results achieved over time. The ultimate recovery of metals from the leach pads will not be known until the leaching process is concluded at the end of the mine life. The cost of in-process inventory is derived from current mining, crushing, stacking, leaching and plant costs, less the cost of metals transferred to finished goods inventory during the period at the weighted average cost per recoverable ounce. Finished goods inventory is metal in the form of doré bars that have been poured and are ready to be shipped to a refiner. Costs are transferred from finished goods inventory and recorded as cost of sales when the refined metal is sold. (ii) Materials and supplies inventories consist primarily of parts and consumables required in the mining and ore processing activities. Materials and supplies inventories are measured at the lower of weighted average cost and NRV. Cost includes purchase price, freight, and other directly attributable costs. We record provisions to reduce the carrying value of materials and supplies inventories when we determine such materials and supplies are obsolete or unusable. (e) We capitalize costs directly related to development or construction projects until the asset is available for use in the manner intended by us (“commercial production”), after which we move these costs to “producing mineral properties”. We assess the stage of a mine under development and construction to determine when the mine is substantially complete and ready for its intended use. The criteria we use to assess when the mine is ready for its intended use are determined based on the unique nature of each mine construction project, such as the complexity of the project and its location. We consider various technical and physical performance criteria to assess when the production phase is considered to have commenced. Refer to note 15 for the factors we consider. When we conclude that a mine under development and construction has commenced commercial production, we reclassify all balance sheet amounts from “Mineral properties and related construction” to balance sheet captions “Producing mineral properties” and “Plant and equipment”. We do not record depreciation until the mine is substantially complete and available for its intended use. When a mine development project moves into the production phase, we: ● stop capitalizing certain mine development costs, and we treat such costs as either (i) part of the cost of inventory or (ii) we expense them, ● stop capitalizing borrowing costs, ● commence depreciation of the producing mineral property, ● continue to capitalize costs relating to mining asset additions or improvements, and costs related to the development of mineable reserves. (i) During the year ended December 31, 2021, we early adopted the “Amendments to IAS 16 Property, Plant and Equipment: Proceeds before Intended Use”. Under the amendments, proceeds from selling items before the mine under construction reaches commercial production should be recognized in profit or loss, together with the costs of producing those items. (f) Producing mineral properties consist of costs transferred from “Mineral properties under construction” when a mining property reaches commercial production, and acquired mining properties in the production stage. When a mine construction project moves into the production stage, we cease capitalizing mine construction costs. Upon commencement of commercial production, we charge production costs to metal-in-process inventory, although we capitalize costs related to (1) property, plant and equipment additions or improvements, (2) open pit stripping activities that provide a future benefit, or (3) expenditures that meet the criteria for capitalization in accordance with IAS 16 Property, Plant and Equipment. Drilling and related costs for an ore body where proven and probable reserves exist and the activities are directed at obtaining additional information on the ore body or converting mineralized material to proven and probable reserves are capitalized. All other drilling and related costs are expensed as incurred. (i) In open pit mining operations, it is necessary to incur costs to remove waste material in order to access the ore body, which is known as stripping. Stripping costs incurred prior to the production stage of a mineral property (pre-stripping costs) are capitalized as part of the carrying amount of the related mineral property. During the production phase of an open pit mine, stripping costs incurred that provide improved access to ore that will be produced in future periods and that would not have otherwise been accessible are capitalized to deferred stripping asset. The costs qualifying for capitalization are those costs directly incurred to perform the stripping activity that provides or improves access to the identified component of ore, plus an allocation of directly attributable overhead costs, which are determined using a strip ratio methodology. The strip ratio represents the ratio of the estimated total volume of waste material to the estimated total quantity of economically recoverable ore of the mineral reserves for which access has been provided or improved. The deferred stripping asset is capitalized as part of the carrying amount of the mineral property. Capitalized stripping costs are amortized based on the estimated recoverable ounces contained in mineral reserves that directly benefit from the stripping activities. Costs for waste removal that do not give rise to future economic benefits are included in cost of sales. (ii) Depletion commences once the mineral property is capable of operating in the manner intended by management. Producing mineral properties are depleted on a units-of-production basis over the estimated useful life of the mine. This depletion is calculated using the ratio of (i) gold ounces produced from the mine in the period, over (ii) the total gold ounces expected to be produced in current and future periods. Major capital works projects conducted after the mine commences commercial production are not depreciated until such works are completed and put into use in a manner intended by management. We review depreciation methods, remaining useful lives and residual values at least annually and we account for changes in estimates prospectively. (iii) At the end of each reporting period, we review our mineral properties, and related plant and equipment to determine whether there is any indication that these assets are impaired. If any such indication exists, we estimate the recoverable amount. If the asset’s carrying amount exceeds its recoverable amount, we recognize an impairment loss in profit or loss. We assess impairment at the cash-generating unit (“CGU”) level, which is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets. Each individual mining interest that is an operating mine is typically a CGU. The recoverable amount of a mine is the greater of an asset’s fair value less costs to dispose (“FVLCD”) and value in use (“VIU”). FVLCD is defined as the amount that would be obtained from the sale of the asset in an orderly transaction between market participants at the measurement date. VIU is determined as the present value of the estimated future cash flows expected to arise from the continued use of the asset in its present form and from its ultimate disposal. Mineral properties, and plant and equipment that have been impaired are tested for possible reversal of the impairment when events or changes in circumstances indicate that the recoverable amount of the associated CGU has increased. When an impairment loss reverses in a subsequent period, the revised carrying amount shall not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset previously, less subsequent depletion and depreciation. Reversals of impairment losses are recognized in profit or loss in the period in which the reversal occurs. (g) Exploration and evaluation (“E&E”) expenditures Exploration and evaluation expenditures include the search for mineral resources, and the determination of technical feasibility, and assessment of the commercial viability of, an identified mineral resource. Activities include acquisition of rights to explore; topographical, geological, geochemical and geophysical studies; exploratory drilling; trenching; sampling; and evaluation of the technical feasibility and commercial viability of extracting a mineral resource. We capitalize as exploration and evaluation assets the acquisition costs of exploration properties (whether acquired in a business combination or through an acquisition of assets). We expense all other E&E expenditures, including non-refundable advance royalty payments. Exploration and evaluation properties are subsequently measured at cost less accumulated impairment. When the technical feasibility and economic viability of a project are demonstrable, funding is in place, and a positive development decision is made, we test the mineral property for impairment and transfer the costs to “Mineral properties and related construction”. We capitalize subsequent expenditures on the project. We assess exploration and evaluation properties for impairment when indicators and circumstances suggest that the carrying amount may exceed its recoverable amount. Typical indicators of impairment include: ● the period for which we have the right to explore in the specific area has expired during the period or will expire in the near future, and is not expected to be renewed; ● substantive expenditure on further exploration for and evaluation of mineral resources in the specific area is neither budgeted nor planned; ● exploration for and evaluation of mineral resources in the specific area have not led to the discovery of commercially viable quantities of mineral resources and we have decided to discontinue such activities in the specific area; ● sufficient data exists to indicate that, although a development in the specific area is likely to proceed, the carrying amount of the exploration and evaluation asset is unlikely to be recovered in full via successful development or by sale. If any such indication exists, we estimate the recoverable amount of the asset to determine the extent of the impairment. Where it is not possible to estimate the recoverable amount of an individual asset, we estimate the recoverable amount of the cash generating unit to which the asset belongs. The recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, we discount the estimated future cash flows to their present value using a pre‐tax discount rate that reflects current market assessments of the time value of money and the risks specific to the E&E asset. If we estimate the recoverable amount of an asset to be less than its carrying amount, we recognize an impairment loss in profit or loss for the period. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash generating unit) is increased to the revised estimate of its recoverable amount, but to an amount that does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (or cash generating unit) in prior years. We recognize reversals of impairment immediately in profit or loss. (h) Property, plant and equipment Equipment is initially recognized at cost. Cost includes purchase price, directly attributable costs, and the estimated present value of any future costs of decommissioning and removal. Equipment is carried at cost, net of accumulated depreciation and impairments. We depreciate equipment to their residual values over their estimated useful lives, as follows: Mine equipment Units-of-production over mineral reserves Plant equipment and related buildings Units-of-production over mineral reserves Other equipment Straight line over useful life Office equipment Straight line over useful life Vehicles Straight line over useful life, typically 4 years Hardware and software Straight line over useful life, typically 3 years (i) Borrowing costs We capitalize interest and other costs that we incur in connection with the borrowing of funds (“borrowing cost”) that are directly attributable to the acquisition, or construction of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale (“a qualifying asset”) as part of the cost of that asset. We expense other borrowing costs in the period in which they occur. When we borrow funds specifically for the purpose of constructing or obtaining a qualifying asset, we capitalize the actual borrowing costs specifically incurred including the amortization of loan initiation costs, less any investment income earned on the temporary investment of those funds. To the extent we borrow funds generally and use them for the purpose of constructing or obtaining a qualifying asset, we use a weighted average interest rate of the borrowing costs applicable to all our general borrowings that are outstanding during the period. We stop capitalizing borrowing costs when substantially all the activities necessary to prepare the qualifying asset for its intended use are complete. We expense borrowing costs related to exploration and evaluation. (j) Leases At the inception of a contract, we assess whether a contract is, or contains, a lease based on whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, we consider whether: ● the contract involves the use of an identified asset, either explicitly or implicitly, including consideration of supplier substitution rights; ● we have the right to obtain substantially all the economic benefits from the use of the asset throughout the period of use; and ● we have the right to direct the use of the asset. We recognize a right-of-use (“ROU”) asset, which is initially measured based on the initial amount of the lease liability plus any initial direct costs incurred less any lease incentives received. We depreciate the ROU asset to the earlier of the end of the useful life or the lease term using either the straight-line or units-of-production method, depending on which method more accurately reflects the expected pattern of consumption of the future economic benefits. The lease term includes periods covered by an option to extend if we determine the Company is reasonably likely to exercise the option. We initially measure the lease liability at the present value of the lease payments that are not yet paid as of the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate. We then measure the lease liability at amortized cost using the effective interest method and remeasure it when there is a change in future lease payments. We apply the short-term lease (defined as leases with an initial lease term of 12 months or less) and low-value asset recognition exemptions. For these leases, we recognize the lease payments an expense over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased assets are consumed. (k) Asset retirement and site closure obligations We record an asset retirement and site closure obligation when a legal or constructive obligation exists as a result of past events and we can make a reliable estimate of the undiscounted future cash flows required to satisfy the asset retirement and site closure obligation. Such costs include decommissioning or dismantling plant and equipment, and reclamation, closure, and post-closure monitoring of the property. The estimated future cash flows are discounted to a net present value using an applicable risk-free interest rate. We accrete the provision for asset retirement and site closure obligations over time to reflect the unwinding of the discount and charge the accretion expense to profit or loss for the period. We remeasure the asset retirement and site closure obligation at the end of each reporting period for changes in estimates or circumstances, such as changes in legal or regulatory requirements, increased obligations arising from additional disturbance due to mining and exploration activities, changes to cost estimates, and changes to risk-free interest rates. Asset retirement and site closure obligations related to exploration and evaluation activities are expensed. Asset retirement and site closure obligations relating to “mineral properties and related construction”, and to exploration and evaluation properties, are initially capitalized with a charge to the related mineral property. Changes to the obligation which arise as a result of changes in estimates and assumptions are also accounted for as changes in the carrying amounts of related mining property. (l) Provisions We recognize provisions when (i) the Company has a present legal or constructive obligation as a result of a past event, (ii) it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and (iii) we can make a reliable estimate of the amount of the obligation. Where we expect some or all of a provision to be reimbursed (for example, under an insurance contract), we recognize the reimbursement as a separate asset, but only when the reimbursement is virtually certain. We present the expense relating to each provision in profit or loss net of any reimbursements. If the effect of the time value of money is material, we discount the provision using a pre-tax discount rate that reflects the risks specific to the liability. The increase in the provision due to the passage of time is recognized as accretion expense in profit or loss. (m) The Company’s primary source of revenue is the sale of refined gold and silver. The Company’s performance obligations relate primarily to the delivery of refined gold and silver to its customers. Revenue related to the sale of metal is recognized when the customer obtains control of the metal. In determining whether the Company has satisfied a performance obligation, we consider whether (i) the Company has a present right to payment, (ii) the Company has transferred physical possession of the metal to the customer; (iii) the customer has the significant risks and rewards of ownership of the metal; and (iv) the customer has legal title to the metal. We sell refined gold and silver primarily to refiners, bullion banks or members of the London Bullion Market Association (“LBMA”). The sales price is fixed on the date of sale based on spot price or by mutual agreement. We recognize revenue from sales of gold and silver at the time when risk and rewards of ownership and title transfers to the customer, which typically coincides with the date that the customer remits payment. Under certain contracts with customers the transfer of control may occur when the gold or silver is in transit from the mine to the refinery. At this point in time, the customer has legal title to and the risk and rewards of ownership of the gold or silver; therefore, the customer is able to direct the use of and obtain substantially all of the remaining benefits from the gold or silver. Revenue from refined sales is recognized net of treatment and refining charges. (n) The Company recognizes deferred revenue in the event it receives payments from customers in consideration for future commitments to deliver metals and before such sale meets the criteria for revenue recognition. The Company will recognize amounts in revenue as the metals are delivered to the customer. Specifically, for the silver stream agreement arising from the acquisition of Gold Standard Ventures Corp., we will amortize deferred revenue to revenue using ounces of silver sold over the estimated total ounces of silver expected to be delivered over the life of mine. (o) Share based payments (i) Stock options, restricted share units ( “ ” “ ” The Company grants stock options, and awards RSUs and DSUs to employees, officers and directors from time to time. At the date of grant or award, we estimate the fair values of the stock options, RSUs and DSUs which will eventually vest. These estimated fair values are recognized as share-based compensation expense over the specific vesting periods, with a corresponding increase to reserves, a component of equity. We determine the fair value of stock options using a Black-Scholes option pricing model with market-related inputs as of the date of grant. The fair value of RSUs and DSUs is the market value of the underlying shares as of the date of award. Cash-settled RSUs are remeasured using the market value of the underlying shares at the end of each reporting period. Stock option grants and RSU awards with several tranches of vesting are accounted for as separate awards with different vesting periods and fair values. We account for changes to the estimated number of awards that will eventually vest prospectively. (ii) Bonus shares The Company has issued bonus shares, which have vested upon the completion of a specified period of service. The fair value of the bonus shares is determined on the date of award; this fair value has been recognized in share-based compensation expense over the service period. (p) Income taxes Income tax expense comprises current and deferred tax. It is recognized in profit or loss except to the extent that it relates to a business combination or items recognized directly in equity or OCI. (i) Current tax Current tax expense comprises the expected tax payable on taxable income for the year and any adjustment to income tax payable in respect of previous years. It is measured using tax rates enacted or substantively enacted at the reporting date. Current tax also includes any withholding tax arising from interest and dividends. (ii) Deferred tax Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognized for: ● temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination, and at the time of the transaction, affects neither the accounting profit nor taxable profit (tax loss); ● temporary differences related to investments in subsidiaries, associates and joint arrangements to the extent that we are able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future; and ● taxable temporary differences arising on the initial recognition of goodwill. We recognize deferred tax assets for unused tax losses, unused tax credits and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be used. If the amount of taxable temporary differences is insufficient to recognize a deferred tax asset in full, then future taxable profits are considered based on the business plans for the individual taxable entity. We review deferred tax assets at each reporting date and reduce them when we consider it no longer probable that the related tax benefit will be realized. Unrecognized deferred tax assets are reassessed at each reporting date and recognized to the extent that it has become probable that future taxable profits will be available against which they can be used. Deferred tax is measured at the tax rates that are expected to apply to the temporary differences when they reverse, using tax rates enacted or substantively enacted at the reporting date. Deferred tax assets and liabilities are offset only when there are sufficient taxable temporary differences relating to the same taxation authority and the same taxable entity which are expected to reverse in the same period or in the carried back/forward period as the expected reversal of the deductible temporary difference. (q) Earnings (loss) per share Basic earnings (loss) per share is based on profit (loss) attributable to common shareholders, divided by the weighted average number of common shares outstanding during the reporting period. Diluted earnings (loss) per share is based on profit (loss) attributable to common shareholders, divided by the weighted average number of common shares outstanding during the reporting period after adjusting for the effects of all dilutive potential ordinary shares. (r) We account for business combinations using the acquisition method when the acquired set of activities and assets meets the definition of a business and when control is transferred to the Company. In determining whether a particular set of activities and assets is a business, we assess whether the set of assets and activities acquired includes, at a minimum, an input and substantive process and whether the acquired set has the ability to produce outputs. The consideration transferred in the acquisition is generally measured at fair value, as are the identifiable net assets acquired. Any goodwill that arises is tested annually for impairment. Any gain on a bargain purchase is recognized in profit or loss immediately. We expense transaction costs as incurred, except if they are related to the issuance of debt or equity securities. The consideration transferred does not include amounts related to the settlement of pre-existing relationships. Such amounts are generally recognized in profit or loss. Any contingent consideration is measured at estimated fair value at the date of acquisition. If an obligation to pay contingent consideration that meets the definition of a financial instrument is classified as equity, then it is not remeasured and settlement is accounted for within equity. Otherwise, other contingent consideration is remeasured at fair value at each reporting date and subsequent changes in the fair value of the contingent consideration are recognized in profit or loss. If share-based payment awards (replacement awards) are required to be exchanged for awards held by the acquiree’s employees (acquiree’s awards), then all or a portion of the acquirer’s replacement awards is included in measuring the consideration transferred in the business combination. This determination is based on the market-based measure of the replacement awards compared with the market-based measure of the acquiree’s awards and the portion to which the replacement awards relate to pre-combination service. The results of businesses acquired during a reporting period are included in the consolidated |
SIGNIFICANT ACCOUNTING JUDGEMEN
SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES | 12 Months Ended |
Dec. 31, 2022 | |
SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES | |
SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES | 4. SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES (a) Significant judgements In preparing the consolidated financial statements, we make judgments when applying our accounting policies. The judgments that have the most significant effect on the amounts recognized in the consolidated financial statements are outlined below. (i) Assessment of impairment indicators We apply judgement in assessing whether indicators of impairment exist for our exploration and evaluation (“E&E”) properties and for our mineral properties which could result in a test for impairment. For our E&E properties, we consider internal and external factors, such as our rights to explore, planned expenditures on E&E activities, the changes in mineral resources and mineral reserves, the potential for viable operations, significant decline in the market value of the Company, changes in metal prices and costs and changes in interest rates to determine whether there are any indicators of impairment or reversal of a previous impairment. For our mineral properties, we consider external factors such as changes in technology, the market, the economy, or the legal environment, interest rates, and the market capitalization of the Company compared to the book value of the asset. We also consider internal factors such as economic performance of the asset, idle properties and plans to discontinue operations, useful life of the property, our ability to repatriate or use profits from the property, restrictions on access, environmental restrictions, and political instability. Although the Company has taken steps to verify title to exploration and evaluation properties in which it has an interest, these procedures do not guarantee the Company’s title. Such properties may be subject to prior agreements or transfers and title may be affected by undetected defects. Further, we make judgements for properties where concessions terms have expired, and a renewal application has been made and is awaiting approval. We use judgement as to whether the concession renewal application is probable to be received, but ultimately this is beyond our control. If a renewal application is not approved, we could lose rights to those concessions. We consider other factors such as typical practice in foreign jurisdictions related permit renewals, our continued ability to operate as usual while awaiting renewals, our continued performance under regulatory requirements, and the ongoing acceptance by authorities of our annual fees. (ii) Commencement of commercial production Determining when a mine under construction is substantially complete and ready for its intended use requires significant judgement. Some of the criteria we used to make that determination for the Camino Rojo Oxide Gold Mine included: ● completion of all major capital expenditures to bring the mine to the condition necessary for steady state operation, ● completion of a reasonable period of testing of the mine plant and equipment, ● ability to produce saleable product (ie, the ability to produce metal within specifications), ● transfer of the mine from the construction group to operating personnel, ● mine and plant reaching a pre-determined percentage of design capacity, ● metal content (the grade) of ore being mined sufficiently consistent with the mine plan, ● mineral recoveries being at or near the expected production level, ● ability to sustain ongoing production of metal. No one factor was more important than any other factor; consequently, we considered these collectively to determine that the date of commencement of commercial production for the Camino Rojo Oxide Gold Mine was April 1, 2022. (iii) Recovery of deferred tax assets At each reporting period, we assess whether it is probable that the Company is able to benefit from tax loss carryforwards and other temporary differences. We consider the recoverability of deferred tax assets based on future taxable income to determine the deferred tax asset to be recognized. Significant assumptions used to determine future taxable income include estimates for commodity prices, reserves and resources, operating costs, financing costs, development capital, and scheduling and mine design. Revisions to these estimates could result in material adjustments to the financial statements. The determination of the ability of the Company to utilize tax losses carried forward to offset income taxes payable in the future and to utilize temporary differences which will reverse in the future requires management to exercise judgement and make assumptions about the Company’s future performance. (b) Significant estimates The preparation of financial statements in conformity with IFRS requires the use of estimates that affect the amounts reported and disclosed. These estimates are based on our knowledge of the relevant facts and circumstances, having regard to previous experience, but actual results may differ materially from the amounts included in the consolidated financial statements. Information about assumptions and other sources of estimation uncertainty as at December 31, 2022 that have a significant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities within the next 12 months are outlined below. (i) Mineral resource and mineral reserve estimates Mineral resource and mineral resource estimates are estimates of the amount of ore that can be economically extracted from the Company’s mining properties. Such estimates impact the financial statements in the following ways: Mineral resource and mineral reserve estimates are key factors considered in determining whether technical feasibility and commercial viability of extracting a mineral resource are demonstrable which influences the classification of expenditure, The carrying value of assets may be affected due to changes in estimated mineral reserves and resources if the change is considered an indicator of impairment, Depreciation of producing mineral properties is affected by changes in reserve estimates, Site closure provisions may change where reserve estimate changes affect expectations about when such activities will occur and the associated cost of these activities. The mineral resource and mineral reserve estimates are based on information compiled by qualified persons within the meaning of Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”). Such information includes geological and technical data on the size, depth, shape and grade of the ore body and suitable production techniques and recovery rates. Such an analysis requires complex geological judgements to interpret the data. The estimation of recoverable reserves is based upon factors such as estimates of foreign exchange rates, commodity prices, future capital requirements and production costs, along with geological assumptions and judgements made in estimating the size and grade of the ore body As the economic assumptions used may change and as additional geological information is produced during the operation of a mine, estimates of mineral resources and mineral reserves may change. (ii) Valuation of production inventory The measurement of inventory, including the determination of its NRV, especially as it relates to metal production inventory involves the use of estimates. NRV is calculated as the estimated price at the time of sale based on prevailing metal prices, less estimated future production costs to convert the inventory into saleable form and associated selling costs, discounted where applicable. In determining the value of metal on the leach pads, we make estimates of rock densities, tonnages, grades, and the recoverability of ore stacked on leach pads to estimate its value. Changes in these estimates can result in a change in carrying amounts of inventory, which could result in charges to cost of sales. The determination of forecast sales prices, recovery rates, grade, assumed contained metal in stockpiles, work-in-process and leach pad inventory and production and selling costs all requires significant assumptions that impact the carrying value of production inventories. (iii) Asset retirement and site closure obligations We make estimates and assumptions in determining the provisions for asset retirement and site closure. The estimates and assumptions include determining the amount and timing of future cash flows, inflation rates, and discount rates. The ultimate rehabilitation costs are uncertain, and cost estimates can vary in response to many factors, including judgements of the extent of rehabilitation activities, technological changes, and regulatory changes. Consequently, there could be significant adjustments to the provisions established, which would affect future financial position, results of operations, and changes in financial position. The provision is management’s best estimate of the present value of the future asset retirement and site closure obligation. Actual future expenditures may differ from the amounts currently provided. (iv) Fair value measurement Management uses valuation techniques in measuring the fair value of share options granted and restricted share units, deferred share units, and bonus shares awarded. Such valuation techniques are also used for estimating the fair value upon initial recognition of the purchase price allocated to the assets and liabilities of South Railroad and Lewis. We determine the fair value of share-based payments awarded using the Black Scholes option pricing model which requires us to make certain estimates, judgements, and assumptions in relation to the expected life of the share options, expected volatility, expected risk‐free rate, and expected forfeiture rate. Changes to these assumptions could have a material impact on the Company’s financial statements. |
REVENUE
REVENUE | 12 Months Ended |
Dec. 31, 2022 | |
REVENUE | |
REVENUE | 5. REVENUE Camino Rojo was under commissioning during the three months ended March 31, 2022. The Company declared commercial production at Camino Rojo, effective April 1, 2022. Revenue by significant product type: Years ended December 31 2022 2021 Gold $ 192,394 $ 4,094 Silver 836 30 Revenue $ 193,230 $ 4,124 Customer A $ 129,866 $ 4,124 Customer B 47,937 — Others 15,427 — Revenue $ 193,230 $ 4,124 |
OPERATING COSTS
OPERATING COSTS | 12 Months Ended |
Dec. 31, 2022 | |
OPERATING COSTS | |
OPERATING COSTS | 6. COST OF SALES (a) Years ended December 31 2022 2021 Mining and processing costs $ 44,538 $ 1,247 Refining and transportation costs 1,059 33 $ 45,597 $ 1,280 (b) Years ended December 31 2022 2021 Camino Rojo Oxide 2% NSR royalty (note 14) $ 3,818 $ 111 Mexican 0.5% Extraordinary Mining Duty 1,001 — $ 4,819 $ 111 |
DEPLETION AND DEPRECIATION
DEPLETION AND DEPRECIATION | 12 Months Ended |
Dec. 31, 2022 | |
DEPLETION AND DEPRECIATION | |
DEPLETION AND DEPRECIATION | 7. DEPLETION AND DEPRECIATION Years ended December 31 2022 2021 Depletion of producing mineral property $ 5,806 $ — Depreciation of plant and equipment 9,147 — Depletion and depreciation $ 14,953 $ — Camino Rojo was under construction during 2021 and the three months ended March 31, 2022. The Company declared commercial production at Camino Rojo effective April 1, 2022. Consequently, no depletion was recorded prior to April 1, 2022. |
EXPLORATION AND EVALUATION EXPE
EXPLORATION AND EVALUATION EXPENSES | 12 Months Ended |
Dec. 31, 2022 | |
EXPLORATION AND EVALUATION EXPENSES | |
EXPLORATION AND EVALUATION EXPENSES | 8. EXPLORATION AND EVALUATION EXPENSES Years ended December 31 2022 2021 Camino Rojo Project $ 3,765 $ 9,908 Cerro Quema Project 7,176 4,771 Nevada projects 7,616 366 Other 382 63 $ 18,939 $ 15,108 |
GENERAL AND ADMINISTRATIVE EXPE
GENERAL AND ADMINISTRATIVE EXPENSES | 12 Months Ended |
Dec. 31, 2022 | |
GENERAL AND ADMINISTRATIVE EXPENSES | |
GENERAL AND ADMINISTRATIVE EXPENSES | 9. GENERAL AND ADMINISTRATIVE EXPENSES Years ended December 31 2022 2021 Office and administrative $ 2,921 $ 1,911 Professional fees 2,237 1,702 Regulatory and transfer agent 301 662 Salaries and benefits 5,454 2,932 $ 10,913 $ 7,207 |
INTEREST AND ACCRETION EXPENSE
INTEREST AND ACCRETION EXPENSE | 12 Months Ended |
Dec. 31, 2022 | |
INTEREST AND ACCRETION EXPENSE | |
INTEREST AND ACCRETION EXPENSE | 10. INTEREST AND ACCRETION EXPENSE Years ended December 31 2022 2021 Interest (note 10(a)) $ 7,368 $ 32 Accretion (note 10(b)) 1,522 1,605 Interest and accretion expense $ 8,890 $ 1,637 (a) Years ended December 31 2022 2021 Project loan (note 20) $ 869 $ — Credit Facility (note 22) 4,903 — Fresnillo obligation (note 23) 1,383 — Interest expense on leases (note 24) 87 32 Other 126 — $ 7,368 $ 32 The Company declared commercial production at Camino Rojo effective April 1, 2022. Borrowing costs prior to that date were capitalized and consequently do not appear in interest expense. (b) Years ended December 31 2022 2021 Project loan (note 20) $ 261 $ — Newmont loan (note 21) 366 1,382 Credit Facility (note 22) 387 — Accretion of site closure provisions (note 25) 508 223 $ 1,522 $ 1,605 |
INVENTORY
INVENTORY | 12 Months Ended |
Dec. 31, 2022 | |
INVENTORY | |
INVENTORY | 11. December 31, December 31, 2022 2021 Current Stockpiled ore $ 1,869 $ 2,458 In-process inventory 15,961 6,513 Finished goods inventory 1,406 — Materials and supplies 3,210 686 Inventory – current $ 22,446 $ 9,657 Long term Stockpiled ore $ 4,096 $ 1,299 Long term inventory consists of stockpiled ore that is not expected to be processed within 12 months. Included within inventory at December 31, 2022 is $6,341,000 of depreciation of property, plant, and equipment (December 31, 2021 — $nil). There were no write downs to reduce the carrying value of inventories to net realizable value during the years ended December 31, 2022 and 2021. |
VALUE ADDED TAXES RECOVERABLE
VALUE ADDED TAXES RECOVERABLE | 12 Months Ended |
Dec. 31, 2022 | |
VALUE ADDED TAXES RECOVERABLE | |
VALUE ADDED TAXES RECOVERABLE | 12. VALUE ADDED TAXES RECOVERABLE Our Mexican entities pay value added taxes (called “IVA” in Mexico) on certain goods and services we purchase. Value added taxes paid in Mexico are fully recoverable. However, IVA recovery returns in Mexico are subject to complex filing requirements and detailed audit or review by the fiscal authorities. Consequently, the timing of receipt of refunds is uncertain. The Mexican tax authorities began issuing payments on these IVA claims to the Company in November 2021. We have used judgement in classifying the current and non-current portions of our Mexican VAT receivables. Factors considered include the regularity of payments received since receiving the first payment, communication from the Mexican tax authorities with respect to specific claims and the expected length of time for refunds in accordance with Mexico’s regulations. Of the long term portion, approximately $4.4 million (December 31, 2021 - $3.4 million) is under dispute with the taxation authorities. |
ACQUISITION OF GOLD STANDARD VE
ACQUISITION OF GOLD STANDARD VENTURES CORP. | 12 Months Ended |
Dec. 31, 2022 | |
ACQUISITION OF GOLD STANDARD VENTURES CORP. | |
ACQUISITION OF GOLD STANDARD VENTURES CORP. | 13. ACQUISITION OF GOLD STANDARD VENTURES CORP. On August 12, 2022, the Company completed the acquisition of Gold Standard Ventures Corp (“Gold Standard”) through a plan of arrangement (the “Transaction”). On closing of the Transaction, shareholders of Gold Standard received 0.1193 (“Exchange Ratio”) Orla shares plus C$0.0001 cash per each Gold Standard share. This resulted in total cash consideration paid of $28,000 and the issuance of 43,688,556 Orla common shares to Gold Standard shareholders. Gold Standard stock options that were outstanding at August 12, 2022 were exchanged for stock options to acquire Orla shares (“Replacement Options”) at the Exchange Ratio, resulting in the issuance of 1,758,334 Replacement Options. We accounted for this acquisition as a purchase of assets. Accordingly, we allocated the sum of consideration paid and transaction costs incurred to the net assets acquired based on relative fair values. The purchase consideration was calculated as follows: Cash consideration $ 28 Estimated fair value of 43,688,556 common shares issued by the Company 149,363 Estimated fair value of 1,758,334 Replacement Options issued by the Company 1,647 Transaction costs 3,030 Total purchase price $ 154,068 Assets acquired and liabilities assumed: Cash and cash equivalents $ 1,821 Restricted cash (pursuant to environmental bonding) 2,704 Receivables and other assets 2,170 Right of use assets 117 Trade and other payables (3,524) Lease liabilities (117) Asset retirement obligations (1,603) Deferred revenue (7,500) Subtotal (5,932) Mineral properties – Nevada – South Railroad Project 146,000 Mineral properties – Nevada – Lewis Project 14,000 Total assets acquired and liabilities assumed, net $ 154,068 The fair value of Orla common shares issued was determined using the Company’s share price of C$4.36 on the date of closing of the Transaction and the exchange rate of 1.2741 CAD/USD. Each Replacement Option gives the holder rights to acquire common shares of the Company. The exercise price of the Replacement Options was determined by dividing the exercise price of the Gold Standard stock options by the Exchange Ratio. The full option value of the Replacement Options was accounted for as consideration, and no future compensation expense will be recorded with respect to the Replacement Options. The fair value of the Replacement Options was determined using the Black-Scholes option pricing model using the following assumptions: Exercise price – various prices ranging from C$4.78 to C$18.87; Share price at issuance date – C$4.36; Expected volatility – 45%; Expected life – 1.9 years; Risk free interest rate – 3.3% and expected dividends – nil. On issuance, the weighted average fair value of the Replacement Options was C$0.58. In 2020, prior to acquisition by Orla, Gold Standard had entered into a silver streaming arrangement (“Silver Stream”) whereby an investor had made an upfront cash payment of $2,000,000, pursuant to which Gold Standard agreed to deliver to the investor 100% of the silver production from the potential South Railroad mine over the life of that mine. The investor agreed to pay an ongoing cash purchase price equal to 15% of the prevailing silver price at the time of delivery. The upfront payment for the Silver Stream had been accounted for as deferred revenue by Gold Standard. Upon our acquisition of Gold Standard, we recognized an estimated fair value of $7,500,000 for this Silver Stream using a discount rate of 6.5%. This deferred revenue will be credited to future silver sales as that revenue is recognized. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2022 | |
PROPERTY, PLANT AND EQUIPMENT | |
PROPERTY, PLANT AND EQUIPMENT | 14 . The Camino Rojo Project lies 190 km NE of the city of Zacatecas, 48 km S-SW of the town of Concepcion del Oro, and 54 km S-SE of Newmont Corporation’s (“Newmont”) Peñasquito Mine. In November 2017, we acquired the Camino Rojo Project, a gold and silver oxide heap leach project located in Zacatecas State, Mexico, from Goldcorp Inc. (now, Newmont Corporation). A 2% net smelter return royalty (the “Royalty”) on the sale of all metal production from the oxide material at Camino Rojo is payable. Newmont later sold this royalty, and the royalty holder as at December 31, 2022 was Triple Flag Precious Metals Corp. The Company and Newmont also entered into an option agreement regarding the potential development of sulphide operations at Camino Rojo. Pursuant to the option agreement, Newmont will, subject to the applicable sulphide project meeting certain thresholds, have an option to acquire a 60% or 70% interest in the applicable sulphide project (“Sulphide Option”). The Royalty excludes revenue on the sale of metals produced from a sulphide project. However, should Newmont decide not to elect to acquire an interest in an applicable sulphide project, or if an applicable sulphide project does not meet certain threshold, Newmont would be entitled to a 2% net smelter return royalty on metals produced from the sulphide material. In February 2021, the Company completed a Layback Agreement with Fresnillo plc (“Fresnillo”) and certain of its subsidiaries which allows Orla to expand the Camino Rojo mine oxide pit onto part of Fresnillo’s mineral concession located immediately north of Orla’s property. The Company agreed to pay Fresnillo total cash consideration of $62.8 million in staged payments (note 23). In December 31, 2020 we commenced construction of the oxide gold mine and on April 1, 2022, we declared commercial production at Camino Rojo. In common with all mining companies in Mexico, Camino Rojo is subject to an Extraordinary Mining Duty of 0.5% of revenues from precious metals. This Extraordinary Mining Duty is included within Cost of Sales – Royalties (note 6(b)). Producing Machinery Other right mineral and Other of use property Buildings equipment assets assets Total Cost At December 31, 2020 $ — $ — $ 392 $ 435 $ 338 $ 1,165 Additions — 67 2,437 845 1,769 5,118 Transfers from mineral properties under construction — — 2,484 — — 2,484 Due to changes in exchange rates — (1) (75) (19) 12 (83) At December 31, 2021 — 66 5,238 1,261 2,119 8,684 Additions 6,616 1,788 3,272 666 2,300 14,642 Transfer from mineral properties under construction 127,002 58,869 36,684 608 — 223,163 Reclassification of capitalized interest (19,020) 11,585 7,341 94 — — Change in site closure provision (note 25) 1,155 (300) (190) — — 665 Leased assets derecognized at end of lease — — — — (215) (215) Due to changes in exchange rates — — — (9) (44) (53) At December 31, 2022 $ 115,753 $ 72,008 $ 52,345 $ 2,620 $ 4,160 $ 246,886 Accumulated depreciation At December 31, 2020 $ — $ — $ 235 $ 162 $ 58 $ 455 Depletion and depreciation — 6 115 127 352 600 Due to changes in exchange rates — — — (1) (5) (6) At December 31, 2021 — 6 350 288 405 1,049 Depletion and depreciation 9,641 6,280 4,541 421 764 21,647 Leased assets derecognized at end of lease — — — — (215) (215) Due to changes in exchange rates — — — (4) (7) (11) At December 31, 2022 $ 9,641 $ 6,286 $ 4,891 $ 705 $ 947 $ 22,470 Net book value At December 31, 2021 $ — $ 60 $ 4,888 $ 973 $ 1,714 $ 7,635 At December 31, 2022 $ 106,112 $ 65,722 $ 47,454 $ 1,915 $ 3,213 $ 224,416 |
MINERAL PROPERTIES AND RELATED
MINERAL PROPERTIES AND RELATED CONSTRUCTION | 12 Months Ended |
Dec. 31, 2022 | |
MINERAL PROPERTIES AND RELATED CONSTRUCTION | |
MINERAL PROPERTIES AND RELATED CONSTRUCTION | 15. MINERAL PROPERTIES UNDER CONSTRUCTION (a) At historical cost Accumulated Deposits to foreign Mineral construction Construction in Other costs exchange on Carrying properties vendors progress capitalized translation value At December 31, 2020 $ 39,272 $ 28,079 $ 4,845 $ 836 $ (1,760) $ 71,272 Additions 62,800 11,411 56,528 — — 130,739 Borrowing costs capitalized — — — 13,967 — 13,967 Change in site closure provision — — — 4,653 — 4,653 Transfer within categories — (37,832) 37,832 — — — Transfers to equipment — — (2,484) — — (2,484) Due to changes in exchange rates — — — — (4,398) (4,398) At December 31, 2021 $ 102,072 $ 1,658 $ 96,721 $ 19,456 $ (6,158) $ 213,749 Additions — — 5,636 — — 5,636 Borrowing costs capitalized — — — 4,085 — 4,085 Change in site closure provision — — — (238) — (238) Transfer within categories (4,060) (1,589) (509) — 6,158 — Transfer to producing mineral property (98,012) — (101,848) (23,303) — (223,163) Transfer to other non-current assets — (69) — — — (69) At December 31, 2022 $ — $ — $ — $ — $ — $ — Determining when a mine under construction is substantially complete and ready for its intended use requires significant judgement (note 4(a)). Using multiple criteria, we determined that the date of commencement of commercial production for the Camino Rojo Oxide Gold Mine was April 1, 2022. No borrowing costs were capitalized subsequent to March 31, 2022. |
EXPLORATION AND EVALUATION PROP
EXPLORATION AND EVALUATION PROPERTIES | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about property, plant and equipment [line items] | |
EXPLORATION AND EVALUATION PROPERITES | 16. EXPLORATION AND EVALUATION PROPERTIES The Company’s exploration and evaluation properties consist of the Cerro Quema Project in Panama and the Nevada projects (South Railroad, Lewis and Monitor Gold projects in Nevada, United States). Nevada projects Cerro Quema Total Acquisition costs At December 31, 2020 and 2021 $ 314 $ 82,429 $ 82,743 Acquisition of Gold Standard Ventures Corp. (note 13) 160,000 — 160,000 At December 31, 2022 $ 160,314 $ 82,429 $ 242,743 (a) (i) The South Railroad project is located in Elko County, Nevada, USA. Prior to its acquisition by Orla, the previous owners of the South Railroad Project entered into various agreements to acquire or lease certain claims, properties and surface rights subject to net smelter return royalties (“NSR”) ranging between 1% and 5%. Certain of these claims are also subject to a 1.5% mineral production royalty. The agreements are subject to specific lease terms, extension options, back-in rights, buy down or purchase provisions, and work commitments. To maintain the agreements in good standing, minimum payments and work commitments are required each year. During 2022, the payments required under the agreements consisted of $1,311,100 in lease payments and $1,000,000 in work commitments, all of which requirements were met by the Company. To maintain the agreements in good standing, the Company expects to spend the following amounts: Total work Total lease commitments payments Total Year 2023 $ 1,300 $ 1,070 $ 2,370 Year 2024 1,300 682 1,982 Year 2025 300 682 982 Year 2026 300 694 994 $ 3,200 $ 3,128 $ 6,328 The South Railroad project is subject to a silver stream arrangement (note 13). (ii) During the year ended December 31, 2017, Gold Standard acquired a 100% right, title and interest in mining claims located in the Battle Mountain Mining District in Lander County, Nevada, USA (the “Lewis Gold Project”). (iii) The Company holds a 100% interest in the Monitor Gold Project, which covers approximately 2,800 ha in central Nevada. To maintain the option agreements in good standing, minimum payments and work commitments are required each year until 2038, all of which are in good standing. (b) The Cerro Quema Project is located on the Azuero Peninsula in Los Santos Province, Panama. The project is at the exploration and development stage for a proposed open pit mine with process by heap leaching. We own the mineral rights as well as the surface rights over the current mineral resource areas, proposed mine development areas, and priority drill target areas. The original 20-year terms for the exploitation concessions expired in February and March of 2017. The Company has applied for the prescribed ten-year extension to these concessions as it is entitled to under Panamanian mineral law. In March 2017, the Ministry of Commerce and Industry provided written confirmation to the Company that the extension applications had been received and that exploration work could continue while the Company awaits renewal of the concessions. As of the date of these financial statements, final concession renewals have not been received and are still under review. In the absence of such renewals, construction or development activities of the Cerro Quema Project cannot proceed. However, we continue to receive ongoing drilling, water use, environmental and other permits, and have paid concession taxes, and issued the annual reports in the normal course. The Company published the results of a Pre-Feasibility Study on the Cerro Quema Project entitled “Project Pre-Feasibility Updated NI 43-101 Technical Report on the Cerro Quema Project Province of Los Santos, Panama” dated January 18, 2022. |
TRADE AND OTHER PAYABLES
TRADE AND OTHER PAYABLES | 12 Months Ended |
Dec. 31, 2022 | |
TRADE AND OTHER PAYABLES | |
TRADE AND OTHER PAYABLES | 17. December 31, December 31, 2022 2021 Trade payables $ 6,707 $ 5,966 Royalties payable 2,119 113 Payroll related liabilities 848 339 Current portion of lease obligations (note 24) 846 372 Other 1,188 26 $ 11,708 $ 6,816 |
ACCRUED LIABILITIES
ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2022 | |
ACCRUED LIABILITIES | |
ACCRUED LIABILITIES | 18. ACCRUED LIABILITIES December 31, December 31, 2022 2021 Current Goods or services received awaiting vendor invoices $ 3,139 2,045 Land and water fees — 1,795 Payroll related 2,532 1,244 Accrued interest on Credit Facility (note 22) 1,660 — Restricted share units expected to be cash settled (note 28(b)) 352 — Other 284 575 Accrued liabilities – current $ 7,967 $ 5,659 Long term Payroll related $ 172 $ 161 |
LONG TERM DEBT
LONG TERM DEBT | 12 Months Ended |
Dec. 31, 2022 | |
LONG TERM DEBT | |
LONG TERM DEBT | 19. LONG TERM DEBT December 31, 2022 Current Long term Total Camino Rojo Project Loan (note 20) $ — $ — $ — Newmont loan (note 21) — — — Credit facility (note 22) 22,200 100,795 122,995 Fresnillo obligation (note 23) 22,800 — 22,800 $ 45,000 $ 100,795 $ 145,795 December 31, 2021 Current Long term Total Camino Rojo Project Loan (note 20) $ — $ 113,260 $ 113,260 Newmont loan (note 21) 10,293 — 10,293 Credit facility (note 22) — — — Fresnillo obligation (note 23) 15,000 22,800 37,800 $ 25,293 $ 136,060 $ 161,353 |
CAMINO ROJO PROJECT LOAN
CAMINO ROJO PROJECT LOAN | 12 Months Ended |
Dec. 31, 2022 | |
CAMINO ROJO PROJECT LOAN | |
CAMINO ROJO PROJECT LOAN | 20 . (a) In December 2019, the Company entered into a loan agreement with Trinity Capital Partners Corporation (“Trinity Capital”) and certain other lenders with respect to a credit debt facility of $125 million for the development of Camino Rojo (the “Project Loan”). The Project Loan provided a total of $125 million to the Company, available in three tranches. The Company drew these funds down between 2019 and 2021. The Project Loan was denominated in US dollars, and bore interest at 8.8% per annum, payable quarterly, and was secured by all the assets of Camino Rojo and the fixed assets of the Cerro Quema Project. The principal amount was due upon maturity in December 2024. On December 1, 2020, we commenced construction of the Camino Rojo Oxide Gold Mine and began capitalizing the interest on this loan to “mineral properties under construction”. On April 1, 2022, we commenced commercial production at the Camino Rojo Oxide Gold Mine and began expensing the interest on this loan. The Project Loan was fully repaid in April 2022 and replaced with the Credit Facility (see note 22). Loan Interest and Transaction advances accretion costs Net At December 31, 2020 $ 75,000 $ — $ (14,304) $ 60,696 Advances during the year 50,000 — (165) 49,835 Accretion during the period, capitalized — 9,613 2,817 12,430 Cash interest paid — (9,613) — (9,613) Foreign exchange — — (88) (88) At December 31, 2021 125,000 — (11,740) 113,260 Accretion during the period, capitalized — 2,764 848 3,612 Accretion during the period, expensed — 869 261 1,130 Cash interest paid — (3,633) — (3,633) Foreign exchange — — (88) (88) Principal repayment including early repayment premium (127,500) — — (127,500) Loss on early settlement of project loan 2,500 — 10,719 13,219 At December 31, 2022 $ — $ — $ — $ — (b) Upon draw down of the first tranche, in December 2019, the Company issued 32.5 million common share purchase warrants (with an exercise price of C$3.00 per warrant and expiry date of December 18, 2026) to the lenders in connection with the closing. Including these warrants, a total of $12,039,000 was considered transaction costs to be amortized over the then-expected five year life of the project loan. On April 28, 2022, the Company entered into a Credit Facility (note 22) and used a portion of the proceeds of the Credit Facility to repay the Camino Rojo project loan in full. Consequently, the remaining unamortized transaction costs were expensed. 2022 2021 Unamortized transaction costs written off (non-cash) $ 10,719 $ — Early repayment premium paid (cash) 2,500 — Loss on early settlement of project loan $ 13,219 $ — |
NEWMONT LOAN
NEWMONT LOAN | 12 Months Ended |
Dec. 31, 2022 | |
NEWMONT LOAN | |
NEWMONT LOAN | 21. As part of the Company’s acquisition of the Camino Rojo project from Newmont, Newmont agreed to provide interest-free loans to the Company for all the annual landholding costs at Camino Rojo until December 2019. The loans were to be repaid upon declaration of commencement of commercial production of a heap leach operation at Camino Rojo. On May 6, 2022, we repaid this loan in full. Year ended Year ended December 31, December 31, 2022 2021 Beginning of the year $ 10,293 $ 9,440 Accretion during the year 366 1,382 Modification gains arising from changes in estimates — (220) Foreign exchange 177 (309) Principal repayment (10,836) — End of the year $ — $ 10,293 |
CREDIT FACILITY
CREDIT FACILITY | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about borrowings [line items] | |
LONG TERM DEBT | 19. LONG TERM DEBT December 31, 2022 Current Long term Total Camino Rojo Project Loan (note 20) $ — $ — $ — Newmont loan (note 21) — — — Credit facility (note 22) 22,200 100,795 122,995 Fresnillo obligation (note 23) 22,800 — 22,800 $ 45,000 $ 100,795 $ 145,795 December 31, 2021 Current Long term Total Camino Rojo Project Loan (note 20) $ — $ 113,260 $ 113,260 Newmont loan (note 21) 10,293 — 10,293 Credit facility (note 22) — — — Fresnillo obligation (note 23) 15,000 22,800 37,800 $ 25,293 $ 136,060 $ 161,353 |
Credit Facility | |
Disclosure of detailed information about borrowings [line items] | |
LONG TERM DEBT | 22. On April 28, 2022, the Company entered into a Credit Facility consisting of a $100 million term facility and a $50 million revolving facility through a syndicate of lenders composed of The Bank of Nova Scotia, Bank of Montreal, and Canadian Imperial Bank of Commerce. The Credit Facility is secured by the Company’s present and future assets, property and all proceeds thereof other than present and future assets owned by Cerro Quema, which is excluded from the collateral. The proceeds from the Credit Facility were used to repay the existing Project Loan (note 20), with the balance of the revolving facility being available for general corporate purposes and working capital. The Credit Facility consists of two parts: 1. 2. $50 million revolving facility, with the ability to increase to $75 million, subject to certain conditions and customary consents. The revolving facility has a three-year term, with an option to extend the term of the revolving facility by up to one The applicable interest rate for each Credit Facility is based on the term Secured Overnight Financing Rate (“SOFR”), plus an applicable margin ranging from 2.75% to 3.75% based on the Company’s leverage ratio at the end of each fiscal quarter. The undrawn portion of the revolving facility is subject to a standby fee ranging from 0.6875% to 0.9375%. The Credit Facility is subject to certain covenants – refer to note 32(c) for details. The Company may prepay all or any portion of the amounts owed under the credit agreement without penalty. Revolving Term facility facility Total At December 31, 2021 $ — $ — $ — Advances during the year 100,000 30,000 130,000 Transaction costs paid, which are accreted over the term of each facility (1,435) (431) (1,866) Interest expense during the year 3,772 1,131 4,903 Accretion during the year 304 83 387 Interest paid during the year (2,481) (738) (3,219) Principal repayments during the year (5,550) — (5,550) Reallocated to accrued interest payable (1,272) (388) (1,660) At December 31, 2022 $ 93,338 $ 29,657 $ 122,995 Current 22,200 — 22,200 Non-current 71,138 29,657 100,795 $ 93,338 $ 29,657 $ 122,995 Upon closing of the Credit Facility, the Company drew down the $100 million term facility and $30 million from the revolving facility. The Company incurred $2.2 million in advisory, legal and upfront fees that were directly attributable to the Credit Facility. The following details how we accounted for these initial transaction costs: Transaction costs Allocated to the term facility $ 1,435 Accreted over the expected life (5 years) Allocated to the revolving facility, drawn amount 431 Accreted over the expected life (3 years) Allocated to the revolving facility, undrawn amount 287 Expensed at loan inception date Total transaction costs incurred $ 2,153 |
FRESNILLO OBLIGATION
FRESNILLO OBLIGATION | 12 Months Ended |
Dec. 31, 2022 | |
FRESNILLO OBLIGATION | |
FRESNILLO OBLIGATION | 23. FRESNILLO OBLIGATION Pursuant to the terms of the Layback Agreement, we agreed to pay Fresnillo total cash consideration of $62.8 million through the following staged payment schedule: i. $ 25 million upon closing of the transaction (paid); ii. $ 15 million on December 1, 2022 (paid); and iii. $ 22.8 million on December 1, 2023 The amounts payable bear interest at 5% per annum, payable quarterly. To March 31, 2022, we capitalized the interest on this loan to “Mineral properties and related construction”. On April 1, 2022, we commenced commercial production at the Camino Rojo Oxide Gold Mine and began to expense the interest on this obligation. Year ended Year ended December 31, December 31, 2022 2021 Beginning of the year $ 37,800 $ — Initial recognition — 37,800 Accretion capitalized 473 1,654 Accretion expensed (note 10) 1,383 — Principal repaid (15,000) — Cash interest paid (1,856) (1,654) End of the year $ 22,800 $ 37,800 Current 22,800 15,000 Non-current — 22,800 $ 22,800 $ 37,800 |
LEASE OBLIGATIONS
LEASE OBLIGATIONS | 12 Months Ended |
Dec. 31, 2022 | |
LEASE OBLIGATIONS | |
LEASE OBLIGATIONS | 24. LEASE OBLIGATIONS The Company has lease contracts for mining equipment, vehicles and buildings. Leases of mining equipment have lease terms of five years, while vehicles and buildings generally have lease terms three (a) Lease obligations Year ended Year ended December 31, December 31, 2022 2021 Beginning of year $ 1,401 $ 273 Additions 2,300 1,769 Interest expense 87 32 Lease payments (661) (681) Due to changes in exchange rates 46 8 End of period $ 3,173 $ 1,401 Current $ 846 $ 372 Non-current 2,327 1,029 $ 3,173 $ 1,401 (b) Lease expenses recognized Year ended Year ended December 31, December 31, 2022 2021 Interest on lease liabilities $ 87 $ 32 Variable lease payments not included in the measurement of lease liabilities 15,586 4,579 Expenses relating to short-term leases 168 131 Expenses relating to leases of low-value assets, excluding short-term leases 108 155 $ 15,949 $ 4,897 The maturity analysis of lease liabilities is disclosed in note 33(b)(ii). |
SITE CLOSURE PROVISIONS
SITE CLOSURE PROVISIONS | 12 Months Ended |
Dec. 31, 2022 | |
SITE CLOSURE PROVISIONS | |
SITE CLOSURE PROVISIONS | 25. SITE CLOSURE PROVISIONS Cerro Quema Nevada Camino Rojo Project projects Total At December 31, 2020 $ 175 $ 343 $ — $ 518 Change in estimated cash flows resulting from current activities 4,738 — — 4,738 Accretion during the period 223 — — 223 Foreign exchange (19) — — (19) At December 31, 2021 5,117 343 — 5,460 Acquisition of Gold Standard (note 13) — — 1,603 1,603 Changes in cost estimates 351 — — 351 Change in estimated cash flows resulting from current activities 427 — — 427 Remediation activities conducted during the period (88) — — (88) Accretion during the period (note 10) 494 — 14 508 At December 31, 2022 $ 6,301 $ 343 $ 1,617 $ 8,261 Current $ — $ — $ — $ — Non-current 6,301 343 1,617 8,261 $ 6,301 $ 343 $ 1,617 $ 8,261 Cerro Quema Nevada Camino Rojo Project projects Estimated settlement dates 2033 to 2047 — 2034 Undiscounted risk-adjusted cash flows $ 8,644 $ 343 $ 1,724 Inflation rate 7.0 % — 2.7 % Discount rate 9.6 % — 3.2 % |
SHARE CAPITAL
SHARE CAPITAL | 12 Months Ended |
Dec. 31, 2022 | |
SHARE CAPITAL | |
SHARE CAPITAL | 26. (a) Authorized share capital The Company’s authorized share capital consists of an unlimited number of common shares without par value and an unlimited number of preferred shares without par value. On August 12, 2022, the Company issued 43,688,556 Orla Mining Ltd common shares to Gold Standard Ventures Corp shareholders (note 13). The Company incurred issuance costs of C$338,000 ($261,000). (b) Warrants The following summarizes information about the number of warrants outstanding during 2022. Exercise December 31 December 31 Expiry date price 2021 Exercised Expired 2022 June 12, 2022 C$ 1.65 4,742,500 (4,742,500) — — November 7, 2022 C$ 1.40 3,000,000 (3,000,000) — — December 18, 2026 C$ 3.00 32,500,000 (2,955,000) — 29,545,000 Total number of warrants 40,242,500 (10,697,500) — 29,545,000 Weighted average exercise price C$ 2.72 C$ 1.95 C$ — C$ 3.00 The following summarizes information about warrants outstanding during 2021: Exercise December 31 December 31 Expiry date price 2020 Exercised Expired 2021 February 15, 2021 C$ 2.35 7,782,994 (7,439,744) (343,250) — July 8, 2021 C$ 0.62 370,000 (370,000) — — June 12, 2022 C$ 1.65 4,992,500 (250,000) — 4,742,500 November 7, 2022 C$ 1.40 3,000,000 — — 3,000,000 December 18, 2026 C$ 3.00 32,500,000 — — 32,500,000 Total number of warrants 48,645,494 (8,059,744) (343,250) 40,242,500 Weighted average exercise price C$ 2.64 C$ 2.25 C$ 2.35 C$ 2.72 Subsequent to the reporting period, the Company issued 370,500 common shares for proceeds of C$1,111,500 ($830,000) pursuant to the exercise of warrants. |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 12 Months Ended |
Dec. 31, 2022 | |
EARNINGS (LOSS) PER SHARE | |
EARNINGS (LOSS) PER SHARE | 27. Earnings (loss) per share has been calculated using the weighted average number of common shares outstanding for the years ended December 31, 2022 and 2021 as follows: (a) Years ended December 31 2022 2021 Income (loss) for the period $ 45,770 $ (26,278) Weighted average number of common shares (thousands) 272,202 241,379 Basic earnings (loss) per share $ 0.17 $ (0.11) (b) Years ended December 31 2022 2021 Income (loss) for the period $ 45,770 $ (26,278) Weighted average number of common shares (thousands) 272,202 241,379 Weighted average shares dilution adjustments: Warrants 14,526 — Options 4,544 — RSUs 392 — DSUs 652 — Bonus shares 500 — Weighted average number of ordinary shares 292,816 241,379 Diluted earnings (loss) per share $ 0.16 $ (0.11) Potential ordinary shares are not included in the calculation of diluted loss per share for the year ended December 31, 2021 because their effect would be anti-dilutive. |
SHARE-BASED PAYMENTS
SHARE-BASED PAYMENTS | 12 Months Ended |
Dec. 31, 2022 | |
SHARE-BASED PAYMENTS | |
SHARE-BASED PAYMENTS | 28. The Company has four different forms of share-based payments for eligible recipients – stock options, restricted share units (“RSUs”), deferred share units (“DSUs”), and bonus shares. The bonus shares have fully vested but have not yet been issued. Years ended December 31 Share- based payments expense 2022 2021 Stock options (note 28(a)) $ 1,396 $ 1,350 Restricted share units (note 28(b)) 743 738 Deferred share units (note 28(c)) 308 241 Share based payments expense $ 2,447 $ 2,329 (a) Stock options Stock options granted by the Company prior to 2022 typically had a five-year life, with one third each vesting one two three Gold Standard stock options that were outstanding at August 12, 2022 were exchanged for Replacement Options at the Exchange Ratio, resulting in the issuance of 1,758,334 Replacement Options (note 13). The Replacement Options held by or on behalf of an individual who continued as a director, officer, employee or consultant of the Company are exercisable until the original expiry date of such option, and the Replacement Options held by or on behalf of an individual who did not continue as a director, officer, employee or consultant of the Company following the acquisition date are exercisable until the earlier of August 12, 2024 and the original expiry date of such options. 2022 2021 Weighted Weighted average average Stock options outstanding Number exercise price Number exercise price Beginning of year 9,900,874 C$ 1.86 9,959,927 C$ 1.60 Replacement Options issued (note 13) 1,758,334 8.43 — — Granted 1,278,264 5.56 678,347 4.74 Exercised (3,674,769) 1.34 (687,400) 0.87 Expired, forfeited or cancelled (83,814) 16.81 (50,000) 1.39 End of year 9,178,889 C$ 3.71 9,900,874 C$ 1.86 Vested, end of year 7,701,986 C$ 3.38 8,704,157 C$ 1.63 The stock options granted during the years ended December 31, 2022 had a grant date fair value of C$4,094,000 ($3,145,000) using the following weighted average assumptions: Share price at grant date ranging from C$3.71 to C$5.98, expected volatility 46%, expected life – 3 years, risk free interest rate 2.9% and expected dividends – nil. The stock options granted during the year ended December 31, 2021 had a grant date fair value of C$1,294,000 ($1,032,000) using the following weighted average assumptions: Share price at grant date – C$4.74, expected volatility – 45%, expected life – 5 years, risk free interest rate – 1.0% and expected dividends – nil. The stock options outstanding at December 31, 2022, were as follows: Exercise Remaining life Number Expiry date price (C$) (years) Number vested January 15, 2023 16.43 0.0 5,964 5,964 February 1, 2023 4.78 0.1 7,731 — February 26, 2023 7.43 0.2 129 43 February 28, 2023 1.06 0.2 30,000 30,000 March 5, 2023 17.69 0.2 148,446 148,446 May 31, 2023 1.25 0.4 400,000 400,000 June 23, 2023 1.06 - 5.98 0.5 295,749 246,797 June 27, 2023 1.25 0.5 746,770 746,770 July 1, 2023 1.06 - 5.98 0.5 224,773 189,351 September 10, 2023 1.25 0.7 100,000 100,000 November 13, 2023 1.30 0.9 250,000 250,000 January 31, 2024 14.59 1.1 112,611 112,611 March 29, 2024 1.06 1.2 1,453,417 1,453,417 August 12, 2024 4.78 - 8.81 1.6 1,280,635 1,280,635 August 13, 2024 1.65 1.6 103,212 103,212 January 30, 2025 8.81 2.1 17,316 17,316 March 25, 2025 2.21 2.2 871,825 871,825 April 16, 2025 2.39 2.3 600,000 600,000 April 20, 2025 2.58 2.3 50,000 50,000 July 1, 2025 3.82 2.5 300,000 300,000 August 24, 2025 6.03 2.6 200,000 200,000 September 1, 2025 5.80 2.7 50,000 50,000 September 23, 2025 8.55 2.7 4,770 4,770 December 4, 2025 7.63 2.9 5,964 5,964 January 21, 2026 7.05 - 7.43 3.1 50,388 42,922 March 24, 2026 4.80 3.2 512,924 341,944 April 19, 2026 4.76 3.3 50,000 33,333 October 4, 2026 4.04 3.8 50,000 33,333 January 10, 2027 4.78 4.0 40,566 — March 1, 2027 5.37 4.2 250,000 83,333 March 24, 2027 5.98 4.2 611,515 — June 23, 2027 3.88 4.5 26,580 — July 4, 2027 3.71 4.5 50,000 — December 5, 2027 5.06 4.9 171,960 — December 30, 2027 5.48 5.0 105,644 — Total number of stock options 9,178,889 7,701,986 The stock options outstanding at December 31, 2021, were as follows: Exercise Remaining life Number Expiry date price (C$) (years) Number vested June 23, 2022 1.39 0.5 2,200,000 2,200,000 May 31, 2023 1.25 1.4 700,000 700,000 June 27, 2023 1.25 1.5 944,514 944,514 September 10, 2023 1.25 1.7 100,000 100,000 November 13, 2023 1.30 1.9 1,000,000 1,000,000 March 29, 2024 1.06 2.2 1,835,227 1,835,227 May 15, 2024 1.00 2.4 117,450 117,450 August 13, 2024 1.65 2.6 103,212 103,212 March 25, 2025 2.21 3.2 1,022,124 677,646 April 16, 2025 2.39 3.3 600,000 400,000 April 20, 2025 2.58 3.3 50,000 33,334 July 1, 2025 3.82 3.5 300,000 200,000 August 24, 2025 6.03 3.6 200,000 133,334 September 1, 2025 5.80 3.7 50,000 33,334 March 24, 2026 4.80 4.2 578,347 192,774 April 19, 2026 4.76 4.3 50,000 16,666 October 4, 2026 4.04 4.8 50,000 16,666 Total number of stock options 9,900,874 8,704,157 Subsequent to the reporting period, 419,305 stock options were exercised, for gross proceeds to the Company of C$478,000 ($351,000). (b) Restricted Share Units Restricted Share Units (“RSU’s) awarded by the Company typically vest one-third two three Number of RSUs outstanding: 2022 2021 Outstanding, January 1 707,840 921,356 Awarded 172,301 235,091 Vested and settled (402,430) (448,607) Forfeitures during the period (34,444) — Outstanding, December 31 443,267 707,840 Number vesting in the year Number of RSUs outstanding: Total 2022 2023 2024 2025 Outstanding, December 31, 2021 707,840 444,301 185,179 78,360 — Outstanding, December 31, 2022 443,267 — 262,738 126,812 53,717 Restricted Share Units (“RSUs”) are valued based on the closing price of the Company’s common shares on the trading day immediately prior to award. Certain RSUs may be settled in cash at the option of the Company. During the year ended December 31, 2022, the Company elected to settle 365,935 RSUs in cash for $1,732,000 (2021 — nil). At December 31, 2022, management expects that 94,063 RSU’s maturing in 2023 will likely be cash settled. Consequently, those RSU’s with a fair value of C$476,394 ($351,738) are presented as a current liability. (c) Deferred Share Units The Deferred Share Units ( “ ” ’ Number of DSUs outstanding: 2022 2021 Outstanding, January 1 707,028 644,525 Awarded and vested immediately 69,290 62,503 Awarded and vested immediately (216,593) — Outstanding, December 31 559,725 707,028 DSUs are valued based on the closing price of the Company’s common shares immediately prior to award. During the year ended December 31, 2022, the Company elected to settle 104,759 DSUs in cash for $330,000 (2021 — nil). No further cash settlements are expected. (d) Bonus shares During 2017, the Board of Directors awarded 500,000 common shares to the non‐executive Chairman of the Company as bonus shares. The bonus shares were subject to a vesting period from June 19, 2017, to June 18, 2020 (the “Eligibility Period”). The bonus shares will become issuable (1) after the Eligibility Period on the date that the non‐executive Chairman ceases to act as a director of the Company, or (2) upon a change of control of the Company. Number of bonus shares outstanding: Year 2022 Year 2021 Outstanding, December 31 500,000 500,000 Vested, December 31 500,000 500,000 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2022 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | 29. The Company’s related parties include: Related party Nature of the relationship Key management personnel Key management personnel are the Chief Executive Officer, the Chief Operating Officer, the Chief Financial Officer, Chief Sustainability Officer, the Senior Vice President Exploration, and members of the Board of Directors of the Company. (a) Key Management Personnel Compensation to key management personnel was as follows: Years ended December 31 2022 2021 Salaries and short term incentives paid $ 3,871 $ 1,580 Directors’ fees 291 183 Share based payments 1,987 1,750 $ 6,149 $ 3,513 (b) Transactions The Company had no other material transactions with related parties other than key management personnel during the years ended December 31, 2022, and 2021. (c) Outstanding balances at the Reporting Date At December 31, 2022, estimated accrued short term incentive compensation totaled $1,147,000 and is included in accrued liabilities (December 31, 2021 – $783,000). |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 12 Months Ended |
Dec. 31, 2022 | |
SUPPLEMENTAL CASH FLOW INFORMATION | |
SUPPLEMENTAL CASH FLOW INFORMATION | 30. (a) Cash and cash equivalents Cash and cash equivalents consists of bank current accounts and cash on hand. (b) Changes in non-cash working capital Years ended December 31 2022 2021 Accounts receivable and prepaid expenses $ (47) $ (604) Inventory (9,177) (10,846) Value added taxes recoverable (8,044) — Trade and other payables 3,378 3,335 Accrued liabilities (1,891) 1,470 Changes in non-cash working capital $ (15,781) $ (6,645) (c) Non-cash investing and financing activities Years ended December 31 2022 2021 Financing activities Stock options exercised, credited to share capital with an offset to reserves $ 3,033 $ 277 Warrants exercised, credited to share capital with an offset to reserves 5,143 2,140 Common shares issued on maturity of RSUs, credited to share capital with an offset to reserves 541 487 Common shares issued on maturity of DSUs, credited to share capital with an offset to reserves 324 — Fresnillo obligation, credited, with an offset to mineral properties — 37,800 Investing activities Common shares issued upon acquisition of Gold Standard, credited to share capital with an offset to the assets acquired and liabilities assumed (note 13) 149,363 — Replacement options issued upon acquisition of Gold Standard, credited to reserves with an offset to the assets acquired and liabilities assumed (note 13) 1,647 — Initial recognition of right of use assets with an offset to lease obligation 2,300 1,769 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2022 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | 31. (a) Reportable segments The operating and reportable segments of the Company are based on the reports which are reviewed by the chief operating decision maker (“CODM”) in making strategic resource allocation decisions. These operating segments are (1) the Mexican project, (2) the Panamanian project, (3) the Nevada projects and (4) the corporate office. The operating segments other than corporate office are each managed by a dedicated General Manager and management team. The corporate office oversees the plans and activities of early stage exploration projects. During the year ended December 31, 2022, the prior year segment information was reclassified to conform with the current year presentation. The Company acquired Gold Standard Ventures Corp. (note 13), which holds the South Railroad and Lewis projects. For segment reporting, these two projects were combined with the existing Monitor Gold Project and form a new reportable segment called the Nevada projects. During the year ended December 31, 2022, Camino Rojo declared commercial production, while the Cerro Quema Project in Panama, and the exploration projects in Nevada were focused on the exploration and evaluation of its mineral properties. (b) Geographic segments We conduct our activities in four geographic areas: Mexico, Panama, Nevada USA, and Canada (Corporate). (i) Mexico Panama Nevada Corporate Total Year ended December 31, 2022 Revenue (note 5) $ 193,109 $ — $ — $ 121 $ 193,230 Cost of sales (65,320) — — (49) (65,369) Earnings from mining operations 127,789 — — 72 127,861 Exploration and evaluation expenses (note 9) (3,765) (7,176) (7,616) (382) (18,939) General and administrative expenses (note 8) — — — (10,913) (10,913) Depreciation (23) (15) (45) (194) (277) Share based payments (note 28) (37) (70) — (2,340) (2,447) Interest income 1,844 — — 323 2,167 Interest and accretion expense (2,315) — (35) (6,540) (8,890) Loss on early settlement of project loan (note 20) — — — (13,219) (13,219) Foreign exchange gain (778) — 37 3,755 3,014 Other — — 39 2 41 Income taxes (29,478) — — (3,150) (32,628) Income (loss) for the period $ 93,237 $ (7,261) $ (7,620) $ (32,586) $ 45,770 Mexico Panama Nevada Corporate Total Year ended December 31, 2021 Revenue (note 5) $ 4,124 $ — $ — $ — $ 4,124 Cost of sales (1,391) — — — (1,391) Earnings from mining operations 2,733 — — — 2,733 Exploration and evaluation expenses (note 9) (9,908) (4,771) (366) (63) (15,108) General and administrative expenses (note 8) — — — (7,207) (7,207) Depreciation — (36) — (118) (154) Share based payments (note 28) (89) (51) — (2,189) (2,329) Interest and finance costs (1,406) — — 110 (1,296) Foreign exchange (3,956) — — 230 (3,726) Other 220 — — 589 809 Income (loss) for the period $ (12,406) $ (4,858) $ (366) $ (8,648) $ (26,278) (ii) Mexico Panama Nevada Corporate Total At December 31, 2022 Property, plant and equipment $ 222,767 $ 39 $ 577 $ 1,033 $ 224,416 Exploration and evaluation properties — 82,429 160,314 — 242,743 Total assets 348,390 83,291 163,857 18,278 613,816 Mexico Panama Nevada Corporate Total At December 31, 2021 Equipment $ 7,466 $ 37 $ — $ 132 $ 7,635 Mineral properties under construction 213,749 — — — 213,749 Exploration and evaluation properties — 82,429 314 — 82,743 Total assets 267,403 83,162 314 14,016 364,895 |
CAPITAL MANAGEMENT
CAPITAL MANAGEMENT | 12 Months Ended |
Dec. 31, 2022 | |
CAPITAL MANAGEMENT | |
CAPITAL MANAGEMENT | 32. (a) Objectives Our objectives when managing capital are to safeguard the Company’s ability to continue as a going concern to pursue the exploration, evaluation, development, and exploitation of our mineral properties and to maintain a flexible capital structure. We manage our capital structure and adjust it considering changes in economic conditions and the risk characteristics of the underlying assets. To maintain or adjust the Company’s capital structure, we may issue new shares, take on additional debt or repay outstanding debt, or acquire or dispose of assets. We currently do not pay regular dividends. Our ability to carry out our long-range strategic objectives in future periods depends on our ability to generate positive cash flows from our mining operations and to raise financing from lenders, shareholders, and new investors. We regularly review and consider financing alternatives to fund the Company’s ongoing operational, exploration and development activities. (b) Investment policy Our investment policy is to invest the Company’s excess cash in low-risk financial instruments such as demand deposits and savings accounts with major Canadian banks. By using this strategy, the Company preserves its cash resources and can marginally increase these resources with low risk through the yields on these investments. Our financial instruments are exposed to certain financial risks, which include currency risk, credit risk, and liquidity risk. (c) Credit facility On April 28, 2022, the Company entered into a Credit Facility which includes a $100 million term facility and a $50 million revolving facility pursuant to which we have drawn $30 million as of December 31, 2022. The agreement includes covenants customary for a facility of this nature, including compliance with customary restrictive covenants and financial covenants related to maintaining a leverage ratio at less than or equal to 3.00, an interest service coverage ratio at greater than or equal to 4, a tangible net worth greater than or equal to $151.6 million and minimum liquidity in an amount greater than or equal to $15 million. Furthermore, the Company is prohibited from declaring, paying or setting aside for payment any dividend on the Common Shares unless certain financial covenants and ratios are met. As at December 31, 2022, the Company was in compliance with all covenants. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2022 | |
FINANCIAL INSTRUMENTS | |
FINANCIAL INSTRUMENTS | 33. (a) Fair value hierarchy To provide an indication of the reliability of the inputs used in determining fair value, we classify our financial instruments into the three levels prescribed by the accounting standards. Level 1 The fair value of financial instruments traded in active markets (such as publicly traded equity securities) is based on quoted (unadjusted) market prices as at the reporting date. The quoted market price used for financial assets held by the Company is the closing trading price on the reporting date. Such instruments are included in Level 1. Level 2 The fair value of financial instruments that are not traded in an active market is determined using valuation techniques. These valuation techniques maximize the use of observable market data where it is available and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable, we include that instrument in Level 2. Level 3 If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3. The carrying value of cash and cash equivalents, accounts receivable, restricted cash, trade payables and accrued liabilities approximates the fair value due to the short-term nature of the instruments. The fair value of the RSUs expected to be cash settled is determined using the market value of the underlying shares at the end of the reporting period. The fair value of the Credit Facility and Fresnillo obligation is determined using discounted cash flows based on the expected amounts and timing of the cash flows discounted using a market rate of interest adjusted for appropriate credit risk. The fair value of the Credit facility at December 31, 2022 was estimated at $124.5 million using a discount rate of 7.5%. The fair value of the Fresnillo obligation at December 31, 2022 was estimated at $22.3 million (December 31, 2021 – $37.8 million) using a discount rate of 7.5% (December 31, 2021 – 5.0%). At December 31, 2022, the carrying values and fair values of our financial instruments by category were as follows: Fair value Carrying Short term Total Classification value Level 1 Level 2 Level 3 nature fair value Financial assets Cash and cash equivalents FVTPL $ 96,278 $ 96,278 $ — $ — $ — $ 96,278 Accounts receivable Amortized cost 317 21 — — 296 317 Restricted cash Amortized cost 3,432 3,432 — — — 3,432 $ 100,027 $ 99,731 $ — $ — $ 296 $ 100,027 Financial liabilities Trade and other payables Amortized cost $ 8,851 $ — $ — $ — $ 8,851 $ 8,851 Accrued liabilities Amortized cost 7,967 352 — — 7,615 7,967 Lease obligation Amortized cost 3,173 — 3,173 — — 3,173 Credit facility Amortized cost 122,995 — — 124,450 — 124,450 Fresnillo obligation Amortized cost 22,800 — — 22,296 — 22,296 $ 165,786 $ 352 $ 3,173 $ 146,746 $ 16,466 $ 166,737 At December 31, 2021, the carrying values and fair values of our financial instruments by category were as follows: Fair value Quoted prices in Approximate active Significant fair value market for other Significant due to short identical observable unobservable term nature Carrying assets inputs inputs of the Total Classification value (Level 1) (Level 2) (Level 3) instrument Fair Value Financial assets Cash and cash equivalents FVTPL $ 20,516 $ 20,516 $ — $ — $ — $ 20,516 Accounts receivable Amortized cost 299 16 — — 283 299 Restricted cash Amortized cost 3,680 — 3,680 — — 3,680 $ 24,495 20,532 $ 3,680 $ — $ 283 $ 24,495 Financial liabilities Trade payables Amortized cost $ 5,966 $ — $ — $ — $ 5,966 $ 5,966 Accrued liabilities Amortized cost 5,659 — — — 5,659 5,659 Lease obligation Amortized cost 1,401 — 1,401 — — 1,401 Camino Rojo project loan Amortized cost 113,260 — 137,746 — — 137,746 Newmont loan Amortized cost 10,293 — 10,533 — — 10,533 Fresnillo obligation Amortized cost 37,800 — 37,800 — — 37,800 $ 174,379 $ — $ 187,480 $ — $ 11,625 $ 199,105 Our policy is to determine whether transfers have occurred between levels in the hierarchy by re-assessing categorization at the end of the reporting period. (b) Financial Risk Management (i) Credit risk Credit risk is the risk of an unexpected loss if a customer or third party to financial instruments fails to meet its contractual obligations. The Company’s exposure to credit risk is limited to cash and environmental bonding. Our cash is held at large financial institutions in interest bearing accounts. Our reclamation deposits are held with government regulatory authorities in the countries where they have been lodged. We believe that the credit risk related to our cash and reclamation deposits is low. The Company’s maximum exposure to credit risk is the carrying value of cash and restricted funds. (ii) Liquidity risk Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with its financial liabilities. At December 31, 2022, our financial liabilities had expected maturity dates as follows: Between Between Less than 3 months and 1 year and More than 3 months 1 year 3 years 3 years Total Financial liabilities Trade and other payables $ 8,851 $ — $ — $ — $ 8,851 Accrued liabilities 7,967 — — — 7,967 Lease obligation 248 743 1,310 1,226 3,527 Credit facility 7,810 22,868 85,566 29,762 146,006 Fresnillo obligation 285 23,563 — — 23,848 $ 25,161 $ 47,174 $ 86,876 $ 30,988 $ 190,199 At December 31, 2021, our financial liabilities had expected maturity dates as follows: Between Between Less than 3 months and 1 year and More than 3 months 1 year 3 years 3 years Total Financial liabilities Trade payables $ 5,966 $ — $ — $ — $ 5,966 Accrued liabilities 5,659 — — — 5,659 Lease obligation 114 289 494 520 1,417 Camino Rojo project loan 2,750 8,250 146,083 — 157,083 Newmont loan — 10,662 — — 10,662 Fresnillo obligation 473 16,357 23,848 — 40,678 $ 14,962 $ 35,558 $ 170,425 $ 520 $ 221,465 We manage liquidity by anticipating and maintaining adequate cash balances to meet liabilities as they become due. We review cash forecasts on a regular basis to determine whether the Company will have sufficient cash to meet future working capital needs. (iii) Market risk Market risk is the risk that the fair value of the Company’s financial instruments will fluctuate due to changes in market prices. The market risks to which the Company’s financial instruments are exposed are commodity price risk, currency risk and interest rate risk. Commodity price risk Commodity price risk is the risk of fluctuations in prevailing market commodity prices. Revenues from mining operation, net income, and the fair value of derivative financial instruments and trade receivables may be affected by changes in commodity prices. As at December 31, 2022, there were no derivative financial instruments or trade receivables subject to provision pricing and consequently no exposure to changes resulting from fluctuations in commodity prices. Had gold prices been 10% greater than actual, our revenues would have increased by $19,323,000 (2021— $409,000). Currency risk The Company is exposed to currency risk to the extent that monetary assets and liabilities held by the Company are not denominated in United States dollars. Our financial instruments are held in Canadian dollars, US dollars, and Mexican pesos. As such, our Canadian- and Mexican-currency denominated accounts and balances are subject to fluctuations against the US dollar. Our financial instruments were denominated in the following currencies as at December 31, 2022: Canadian dollars US dollars Mexican pesos (thousands) (thousands) (thousands) Cash $ 15,498 $ 84,771 $ 1,250 Accounts receivable 28 29 5,475 Restricted funds 70 3,380 — Trade payables (337) (6,104) (87,298) Accrued liabilities (2,972) (4,447) (25,679) Lease obligations (1,323) (1,103) (21,158) Credit facility — (122,995) — Fresnillo obligation — (22,800) — Total foreign currency 10,964 (69,269) (127,410) Exchange rate 1.3544 1.0000 19.3615 Equivalent US dollars $ 8,095 $ (69,269) $ (6,581) Our financial instruments were denominated in the following currencies as at December 31, 2021: Canadian dollars US dollars Mexican pesos (thousands) (thousands) (thousands) Cash $ 7,583 $ 12,061 $ 50,923 Accounts receivable 20 4 5,733 Restricted funds 155 509 62,745 Trade payables (128) (2,642) (66,350) Accrued liabilities (1,637) (2,226) (44,070) Lease obligations (74) (520) (16,935) Camino Rojo project loan — (113,260) — Newmont loan — — (211,881) Fresnillo obligation — (37,800) — Total foreign currency 5,919 (143,874) (219,835) Exchange rate 1.2678 1.0000 20.5835 Equivalent US dollars $ 4,669 $ (143,874) $ (10,680) Based on the above net exposures as at December 31, 2022, and assuming that all other variables remain constant: ● a 10% appreciation of the US dollar against the Canadian dollar would increase profit by $4.5 million (2021 – increase loss by $12.2 million) and ● a 10% appreciation of the US dollar against the Mexican peso would increase profit by $0.6 million (2021 – increase loss by $4.2 million) Interest rate risk Interest rate risk is the risk that the fair value or the future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Our interest rate exposure mainly relates to interest paid on the SOFR-based debt and interest earned on cash and term deposits as the Fresnillo obligation has a fixed interest rate of 5.00%. A one percent increase in interest rates would result in a decrease of approximately $361,000 (2021 - decrease loss by $520,000) to the Company’s income for the year ended December 31, 2022. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2022 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 34. (a) Commitments The Company has issued purchase orders for construction, equipment purchases, materials and supplies, and other services at Camino Rojo. At December 31, 2022, these outstanding purchase orders and contracts totaled approximately $2,019,000 (December 31, 2021 – $8,560,000), which we expect will be filled within the next 12 months. The Company has a minimum commitment of $800,000 related to the South Railroad exploration and evaluation asset, which we expect will be filled within the next 24 months. The Company is committed to making severance payments totalling approximately $3,700,000 (December 31, 2021 – $3,220,000) to certain officers and management in the event of a change in control. As the likelihood of these events occurring is not determinable, such amounts are not reflected in these consolidated financial statements. We may, from time to time, be a party to legal proceedings, which arise in the ordinary course of our business. We are not aware of any pending or threatened litigation that, if resolved against us, would have a material adverse effect on our consolidated financial position, results of operations or cash flows. (b) Discretionary mineral property-related commitments As is customary in mineral exploration, some of the mineral properties held by the Company as exploration and evaluation assets have annual minimum work commitments and lease payments required to maintain these properties in good standing pursuant to their underlying agreements. |
TAX EXPENSE
TAX EXPENSE | 12 Months Ended |
Dec. 31, 2022 | |
TAX EXPENSE | |
TAX EXPENSE | 35. (a) Tax amounts recognized in profit or loss Current income tax expense consists of three components - current income tax on taxable income, 7.5% special mining duty (“SMD”) on income subject to SMD, and withholding taxes attributable to interest charged on intercompany loans to the Mexican operating company. Years ended December 31 2022 2021 Current income tax expense $ 22,512 $ — Mexican 7.5% Special Mining Duty expense 9,371 — Deferred income tax (recovery) (2,698) — Deferred Mexican 7.5% Special Mining Duty expense 293 — Withholding taxes 3,150 — Tax expense $ 32,628 $ — (b) Reconciliation of effective tax rate Income tax expense differs from the amount that would be computed by applying the applicable Canadian statutory income tax rate to income before income taxes. The significant reasons for the differences are as follows: 2022 2021 Income (loss) before tax $ 78,398 $ (26,278) Statutory income tax rate 26.8 % 26.8 % Expected income tax $ 21,036 $ (7,042) Differences between Canadian and foreign tax rates 4,117 (744) Items not deductible for tax purposes 4,508 2,850 Share based compensation 107 587 Change in unrecognized deductible temporary differences (7,778) 6,208 True ups 1,901 (1,913) Effect of changes in tax rates from prior years — (71) Effect of changes in foreign exchange rates (2,371) 393 Mexican Special Mining Duty 9,576 — Inflationary adjustment and other 1,532 (268) Total income taxes 32,628 — Effective tax rate 41.6 % n/a In 2022, the statutory income tax rate applicable to the Canadian parent entity was 26.8% (2021 – 26.8%). (c) Unrecognized deductible temporary differences We recognize tax benefits on losses or other deductible amounts generated in countries where the probable criteria for the recognition of deferred tax assets has been met. The Company’s unrecognized deductible temporary differences for which no deferred tax asset is recognized consist of the following amounts. December 31 2022 2021 Mineral properties and exploration expenditures $ 30,467 $ 55,548 Equipment 1,251 1,814 Site closure provisions 356 5,460 Long term debt 6,570 — Share issue costs 3,452 5,724 Non capital losses 53,436 41,343 Intercompany debt — 413 Other 154 5,202 Unrecognized deductible temporary differences $ 95,686 $ 115,504 (d) Recognized deferred tax assets and liabilities Recognized deferred tax assets and liabilities are comprised of the following: December 31 2022 2021 Property, plant and equipment $ (216) $ (8,173) Site closure provisions 2,363 — Long term debt — (1,786) Non capital losses 1,397 10,447 Intercompany debt (1,619) — Other 480 (488) Recognized deferred tax assets (liabilities) $ 2,405 $ — Significant judgment is required in determining the deferred tax asset related to the Camino Rojo Oxide Mine. This includes the probability that there will be sufficient taxable income in the future against which the deferred tax asset can be utilized. Due to successful performance of the Camino Rojo Oxide Mine, the Company considers it highly probable that its Mexican operating subsidiary will have future taxable profits which will be available against which the deductible temporary differences can be used. Accordingly, during the year ended December 31, 2022, the Company recognized the previously unrecognized deferred tax asset relating to the Camino Rojo Oxide Mine. (e) Temporary difference on investment in subsidiaries The temporary differences associated with investments in subsidiaries for which a deferred income tax liability has not been recognized, aggregate to $62 million(December 31, 2021 - $5 million). The Company has determined that the taxable temporary difference will not reverse in the foreseeable future. (f) Tax loss carryforwards Our tax losses have the following expiry dates. Tax losses December 31 expire in years 2022 2021 Canada 2025 to 2042 $ 61,214 $ 46,354 Mexico 2027 to 2031 — 29,851 Panama 2023 to 2027 736 655 United States indefinite 27,086 16 |
RECLASSIFICATIONS OF PRIOR PERI
RECLASSIFICATIONS OF PRIOR PERIOD FIGURES | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of reclassifications or changes in presentation [abstract] | |
RECLASSIFICATIONS OF PRIOR PERIOD FIGURES | 36. Certain of the prior year’s figures have been reclassified to conform to the presentation in the current year. Such reclassifications were primarily the grouping and disaggregation of small balances. (a) Income statement 2021 As previously presented Interest income and finance costs $ (1,296) As currently presented Interest income $ 341 Interest and accretion expense (1,637) $ (1,296) Revenue As previously presented $ 4,091 Refining and transportation reclassified to operating costs 33 As currently presented $ 4,124 Operating costs As previously presented $ 1,247 Refining and transportation reclassified from revenue 33 As currently presented $ 1,280 (b) Statement of cash flows 2021 Operating activities – As previously presented Other gains and losses $ (211) Exploration paid via issuance of common shares 150 Changes in site closure provision charged to exploration expense 84 $ 23 Operating activities – As currently presented Other $ 23 Financing activities – As previously presented Proceeds from the issuance of common shares, net of issuance costs $ 34,442 Proceeds from the exercise of warrants 14,279 Proceeds from the exercise of stock options 475 Share issuance costs (1,000) $ 48,196 Financing activities – As currently presented Proceeds from the issuance of common shares, net of issuance costs $ 33,442 Proceeds from the issuance of stock options and warrants 14,754 $ 48,196 |
EVENTS AFTER THE REPORTING PERI
EVENTS AFTER THE REPORTING PERIOD | 12 Months Ended |
Dec. 31, 2022 | |
EVENTS AFTER THE REPORTING PERIOD | |
EVENTS AFTER THE REPORTING PERIOD | 37. (c) Share issuances Subsequent to the reporting period, the Company issued common shares pursuant to the exercise of warrants (note 26(b)) and exercise of stock options (note 28(a)). |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
SIGNIFICANT ACCOUNTING POLICIES | |
Foreign currencies | (a) (i) Foreign currency transactions Transactions in foreign currencies are translated into the respective functional currencies of each entity at the exchange rates in effect on the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rate at the reporting date. Non-monetary assets and liabilities that are measured at fair value in a foreign currency are translated into the functional currency at the exchange rate when the fair value was determined. Non-monetary items that are measured at historical cost in a foreign currency are translated at the exchange rate in effect at the date of the transaction. Foreign currency differences are generally recognized in profit or loss. (ii) Translation to presentation currency These consolidated financial statements are presented in United States dollars (“US dollar”, or “USD”). The presentation currency differs from the functional currency of the parent company and some of its subsidiaries (note 3(a)). We translate the assets and liabilities of entities with functional currencies other than the US dollar into US dollars at the official central bank exchange rates in effect on the reporting date. The results of operations of those entities are translated into US dollars at the average exchange rates in effect during the reporting period. We recognize the foreign currency differences which arise from translation in other comprehensive (loss) income. When we dispose of an entity in its entirety, or partially such that we have lost control, we reclassify the cumulative amount in the translation reserve related to that operation to profit or loss as part of the gain or loss on disposal. (iii) The functional currency of each of the Company’s principal operating subsidiaries, all of which are wholly owned, is the United States dollar. The functional currency of the parent company, Orla Mining Ltd., is the Canadian dollar. The Company’s principal operating subsidiaries are Minera Camino Rojo SA de CV, Minera Cerro Quema SA, Gold Standard Ventures Corp., Gold Standard Ventures (US) Inc., Madison Enterprises (Nevada) Inc., and Monitor Gold Corporation. Change in functional currency As a result of the continued advancement of Camino Rojo and the resulting changes in underlying transactions, events, and circumstances, we reassessed the functional currency of Minera Camino Rojo SA de CV. We determined that the functional currency of Minera Camino Rojo SA de CV is the United States dollar. Consequently, the functional currency for this subsidiary changed from Mexican pesos to United States dollars effective |
Cash and cash equivalents | (b) Cash and cash equivalents Cash and cash equivalents include cash on hand, demand deposits, and money market instruments, with maturities from the date of acquisition of three months or less, which are readily convertible to known amounts of cash and are subject to insignificant changes in value. |
Restricted cash | (c) Restricted cash Restricted cash consists of amounts lodged with government bodies or their designated banking institutions in support of mandated environmental, permitting, or employee retirement obligations. |
Inventories | (d) Inventories include production inventory, and materials and supplies inventory. All inventories are valued at the lower of average cost or net realizable market value (“NRV”). NRV is calculated using the estimated price at the time of sale based on prevailing and forecast metal prices less estimated future production costs to convert the inventory into saleable form and associated selling costs. Any write-downs of inventory to its NRV are included in cost of sales in the period. If there is a subsequent increase in the value of inventory, the previous write-downs to NRV are reversed to the extent that the related inventory has not yet been sold. We classify inventory we do not expect to use within one year as non-current. (i) Production inventory consists of stockpiled ore, in-process inventory, and finished goods. These are valued at the lower of weighted average cost and estimated NRV. The value of all production inventories includes direct production costs and attributable overhead and depreciation incurred to bring the materials to their current point in the processing cycle. Stockpiled ore represents unprocessed ore that has been extracted from the mine but not yet processed. The value of stockpiled ore is based on the costs incurred, including depreciation, in bringing the ore to the stockpiles. Costs are added to the stockpiled ore based on current mining costs per recoverable ounce and are removed at the average cost per recoverable ounce in the stockpile. We classify stockpiled ore that we do not expect to process within the next twelve months as non-current. In-process inventory represents ore that is being treated on the leach pads and in the processing plant to extract the contained metals and to convert them to a saleable form. Estimates of recoverable metal in the leach pads are calculated based on the quantities of ore placed on the leach pads (measured tonnes added to the leach pads), the grades of ore placed on the leach pads (based on assays), and estimated recovery percentages (based on estimated recovery assumptions). The nature of the leaching process inherently limits the ability to precisely monitor leach pad inventory levels. Accordingly, we refine estimates based on engineering studies or actual results achieved over time. The ultimate recovery of metals from the leach pads will not be known until the leaching process is concluded at the end of the mine life. The cost of in-process inventory is derived from current mining, crushing, stacking, leaching and plant costs, less the cost of metals transferred to finished goods inventory during the period at the weighted average cost per recoverable ounce. Finished goods inventory is metal in the form of doré bars that have been poured and are ready to be shipped to a refiner. Costs are transferred from finished goods inventory and recorded as cost of sales when the refined metal is sold. (ii) Materials and supplies inventories consist primarily of parts and consumables required in the mining and ore processing activities. Materials and supplies inventories are measured at the lower of weighted average cost and NRV. Cost includes purchase price, freight, and other directly attributable costs. We record provisions to reduce the carrying value of materials and supplies inventories when we determine such materials and supplies are obsolete or unusable. |
Mineral properties and related construction | (e) We capitalize costs directly related to development or construction projects until the asset is available for use in the manner intended by us (“commercial production”), after which we move these costs to “producing mineral properties”. We assess the stage of a mine under development and construction to determine when the mine is substantially complete and ready for its intended use. The criteria we use to assess when the mine is ready for its intended use are determined based on the unique nature of each mine construction project, such as the complexity of the project and its location. We consider various technical and physical performance criteria to assess when the production phase is considered to have commenced. Refer to note 15 for the factors we consider. When we conclude that a mine under development and construction has commenced commercial production, we reclassify all balance sheet amounts from “Mineral properties and related construction” to balance sheet captions “Producing mineral properties” and “Plant and equipment”. We do not record depreciation until the mine is substantially complete and available for its intended use. When a mine development project moves into the production phase, we: ● stop capitalizing certain mine development costs, and we treat such costs as either (i) part of the cost of inventory or (ii) we expense them, ● stop capitalizing borrowing costs, ● commence depreciation of the producing mineral property, ● continue to capitalize costs relating to mining asset additions or improvements, and costs related to the development of mineable reserves. (i) During the year ended December 31, 2021, we early adopted the “Amendments to IAS 16 Property, Plant and Equipment: Proceeds before Intended Use”. Under the amendments, proceeds from selling items before the mine under construction reaches commercial production should be recognized in profit or loss, together with the costs of producing those items. |
Producing mineral properties | (f) Producing mineral properties consist of costs transferred from “Mineral properties under construction” when a mining property reaches commercial production, and acquired mining properties in the production stage. When a mine construction project moves into the production stage, we cease capitalizing mine construction costs. Upon commencement of commercial production, we charge production costs to metal-in-process inventory, although we capitalize costs related to (1) property, plant and equipment additions or improvements, (2) open pit stripping activities that provide a future benefit, or (3) expenditures that meet the criteria for capitalization in accordance with IAS 16 Property, Plant and Equipment. Drilling and related costs for an ore body where proven and probable reserves exist and the activities are directed at obtaining additional information on the ore body or converting mineralized material to proven and probable reserves are capitalized. All other drilling and related costs are expensed as incurred. (i) In open pit mining operations, it is necessary to incur costs to remove waste material in order to access the ore body, which is known as stripping. Stripping costs incurred prior to the production stage of a mineral property (pre-stripping costs) are capitalized as part of the carrying amount of the related mineral property. During the production phase of an open pit mine, stripping costs incurred that provide improved access to ore that will be produced in future periods and that would not have otherwise been accessible are capitalized to deferred stripping asset. The costs qualifying for capitalization are those costs directly incurred to perform the stripping activity that provides or improves access to the identified component of ore, plus an allocation of directly attributable overhead costs, which are determined using a strip ratio methodology. The strip ratio represents the ratio of the estimated total volume of waste material to the estimated total quantity of economically recoverable ore of the mineral reserves for which access has been provided or improved. The deferred stripping asset is capitalized as part of the carrying amount of the mineral property. Capitalized stripping costs are amortized based on the estimated recoverable ounces contained in mineral reserves that directly benefit from the stripping activities. Costs for waste removal that do not give rise to future economic benefits are included in cost of sales. (ii) Depletion commences once the mineral property is capable of operating in the manner intended by management. Producing mineral properties are depleted on a units-of-production basis over the estimated useful life of the mine. This depletion is calculated using the ratio of (i) gold ounces produced from the mine in the period, over (ii) the total gold ounces expected to be produced in current and future periods. Major capital works projects conducted after the mine commences commercial production are not depreciated until such works are completed and put into use in a manner intended by management. We review depreciation methods, remaining useful lives and residual values at least annually and we account for changes in estimates prospectively. (iii) At the end of each reporting period, we review our mineral properties, and related plant and equipment to determine whether there is any indication that these assets are impaired. If any such indication exists, we estimate the recoverable amount. If the asset’s carrying amount exceeds its recoverable amount, we recognize an impairment loss in profit or loss. We assess impairment at the cash-generating unit (“CGU”) level, which is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets. Each individual mining interest that is an operating mine is typically a CGU. The recoverable amount of a mine is the greater of an asset’s fair value less costs to dispose (“FVLCD”) and value in use (“VIU”). FVLCD is defined as the amount that would be obtained from the sale of the asset in an orderly transaction between market participants at the measurement date. VIU is determined as the present value of the estimated future cash flows expected to arise from the continued use of the asset in its present form and from its ultimate disposal. Mineral properties, and plant and equipment that have been impaired are tested for possible reversal of the impairment when events or changes in circumstances indicate that the recoverable amount of the associated CGU has increased. When an impairment loss reverses in a subsequent period, the revised carrying amount shall not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset previously, less subsequent depletion and depreciation. Reversals of impairment losses are recognized in profit or loss in the period in which the reversal occurs. |
Exploration and evaluation ("E&E") expenditures | (g) Exploration and evaluation (“E&E”) expenditures Exploration and evaluation expenditures include the search for mineral resources, and the determination of technical feasibility, and assessment of the commercial viability of, an identified mineral resource. Activities include acquisition of rights to explore; topographical, geological, geochemical and geophysical studies; exploratory drilling; trenching; sampling; and evaluation of the technical feasibility and commercial viability of extracting a mineral resource. We capitalize as exploration and evaluation assets the acquisition costs of exploration properties (whether acquired in a business combination or through an acquisition of assets). We expense all other E&E expenditures, including non-refundable advance royalty payments. Exploration and evaluation properties are subsequently measured at cost less accumulated impairment. When the technical feasibility and economic viability of a project are demonstrable, funding is in place, and a positive development decision is made, we test the mineral property for impairment and transfer the costs to “Mineral properties and related construction”. We capitalize subsequent expenditures on the project. We assess exploration and evaluation properties for impairment when indicators and circumstances suggest that the carrying amount may exceed its recoverable amount. Typical indicators of impairment include: ● the period for which we have the right to explore in the specific area has expired during the period or will expire in the near future, and is not expected to be renewed; ● substantive expenditure on further exploration for and evaluation of mineral resources in the specific area is neither budgeted nor planned; ● exploration for and evaluation of mineral resources in the specific area have not led to the discovery of commercially viable quantities of mineral resources and we have decided to discontinue such activities in the specific area; ● sufficient data exists to indicate that, although a development in the specific area is likely to proceed, the carrying amount of the exploration and evaluation asset is unlikely to be recovered in full via successful development or by sale. If any such indication exists, we estimate the recoverable amount of the asset to determine the extent of the impairment. Where it is not possible to estimate the recoverable amount of an individual asset, we estimate the recoverable amount of the cash generating unit to which the asset belongs. The recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, we discount the estimated future cash flows to their present value using a pre‐tax discount rate that reflects current market assessments of the time value of money and the risks specific to the E&E asset. If we estimate the recoverable amount of an asset to be less than its carrying amount, we recognize an impairment loss in profit or loss for the period. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash generating unit) is increased to the revised estimate of its recoverable amount, but to an amount that does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (or cash generating unit) in prior years. We recognize reversals of impairment immediately in profit or loss. |
Equipment | (h) Property, plant and equipment Equipment is initially recognized at cost. Cost includes purchase price, directly attributable costs, and the estimated present value of any future costs of decommissioning and removal. Equipment is carried at cost, net of accumulated depreciation and impairments. We depreciate equipment to their residual values over their estimated useful lives, as follows: Mine equipment Units-of-production over mineral reserves Plant equipment and related buildings Units-of-production over mineral reserves Other equipment Straight line over useful life Office equipment Straight line over useful life Vehicles Straight line over useful life, typically 4 years Hardware and software Straight line over useful life, typically 3 years |
Borrowing costs | (i) Borrowing costs We capitalize interest and other costs that we incur in connection with the borrowing of funds (“borrowing cost”) that are directly attributable to the acquisition, or construction of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale (“a qualifying asset”) as part of the cost of that asset. We expense other borrowing costs in the period in which they occur. When we borrow funds specifically for the purpose of constructing or obtaining a qualifying asset, we capitalize the actual borrowing costs specifically incurred including the amortization of loan initiation costs, less any investment income earned on the temporary investment of those funds. To the extent we borrow funds generally and use them for the purpose of constructing or obtaining a qualifying asset, we use a weighted average interest rate of the borrowing costs applicable to all our general borrowings that are outstanding during the period. We stop capitalizing borrowing costs when substantially all the activities necessary to prepare the qualifying asset for its intended use are complete. We expense borrowing costs related to exploration and evaluation. |
Leases | (j) Leases At the inception of a contract, we assess whether a contract is, or contains, a lease based on whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, we consider whether: ● the contract involves the use of an identified asset, either explicitly or implicitly, including consideration of supplier substitution rights; ● we have the right to obtain substantially all the economic benefits from the use of the asset throughout the period of use; and ● we have the right to direct the use of the asset. We recognize a right-of-use (“ROU”) asset, which is initially measured based on the initial amount of the lease liability plus any initial direct costs incurred less any lease incentives received. We depreciate the ROU asset to the earlier of the end of the useful life or the lease term using either the straight-line or units-of-production method, depending on which method more accurately reflects the expected pattern of consumption of the future economic benefits. The lease term includes periods covered by an option to extend if we determine the Company is reasonably likely to exercise the option. We initially measure the lease liability at the present value of the lease payments that are not yet paid as of the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate. We then measure the lease liability at amortized cost using the effective interest method and remeasure it when there is a change in future lease payments. We apply the short-term lease (defined as leases with an initial lease term of 12 months or less) and low-value asset recognition exemptions. For these leases, we recognize the lease payments an expense over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased assets are consumed. |
Asset retirement and site closure obligations | (k) Asset retirement and site closure obligations We record an asset retirement and site closure obligation when a legal or constructive obligation exists as a result of past events and we can make a reliable estimate of the undiscounted future cash flows required to satisfy the asset retirement and site closure obligation. Such costs include decommissioning or dismantling plant and equipment, and reclamation, closure, and post-closure monitoring of the property. The estimated future cash flows are discounted to a net present value using an applicable risk-free interest rate. We accrete the provision for asset retirement and site closure obligations over time to reflect the unwinding of the discount and charge the accretion expense to profit or loss for the period. We remeasure the asset retirement and site closure obligation at the end of each reporting period for changes in estimates or circumstances, such as changes in legal or regulatory requirements, increased obligations arising from additional disturbance due to mining and exploration activities, changes to cost estimates, and changes to risk-free interest rates. Asset retirement and site closure obligations related to exploration and evaluation activities are expensed. Asset retirement and site closure obligations relating to “mineral properties and related construction”, and to exploration and evaluation properties, are initially capitalized with a charge to the related mineral property. Changes to the obligation which arise as a result of changes in estimates and assumptions are also accounted for as changes in the carrying amounts of related mining property. |
Provisions | (l) Provisions We recognize provisions when (i) the Company has a present legal or constructive obligation as a result of a past event, (ii) it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and (iii) we can make a reliable estimate of the amount of the obligation. Where we expect some or all of a provision to be reimbursed (for example, under an insurance contract), we recognize the reimbursement as a separate asset, but only when the reimbursement is virtually certain. We present the expense relating to each provision in profit or loss net of any reimbursements. If the effect of the time value of money is material, we discount the provision using a pre-tax discount rate that reflects the risks specific to the liability. The increase in the provision due to the passage of time is recognized as accretion expense in profit or loss. |
Revenue | (m) The Company’s primary source of revenue is the sale of refined gold and silver. The Company’s performance obligations relate primarily to the delivery of refined gold and silver to its customers. Revenue related to the sale of metal is recognized when the customer obtains control of the metal. In determining whether the Company has satisfied a performance obligation, we consider whether (i) the Company has a present right to payment, (ii) the Company has transferred physical possession of the metal to the customer; (iii) the customer has the significant risks and rewards of ownership of the metal; and (iv) the customer has legal title to the metal. We sell refined gold and silver primarily to refiners, bullion banks or members of the London Bullion Market Association (“LBMA”). The sales price is fixed on the date of sale based on spot price or by mutual agreement. We recognize revenue from sales of gold and silver at the time when risk and rewards of ownership and title transfers to the customer, which typically coincides with the date that the customer remits payment. Under certain contracts with customers the transfer of control may occur when the gold or silver is in transit from the mine to the refinery. At this point in time, the customer has legal title to and the risk and rewards of ownership of the gold or silver; therefore, the customer is able to direct the use of and obtain substantially all of the remaining benefits from the gold or silver. Revenue from refined sales is recognized net of treatment and refining charges. |
Deferred revenue | (n) The Company recognizes deferred revenue in the event it receives payments from customers in consideration for future commitments to deliver metals and before such sale meets the criteria for revenue recognition. The Company will recognize amounts in revenue as the metals are delivered to the customer. Specifically, for the silver stream agreement arising from the acquisition of Gold Standard Ventures Corp., we will amortize deferred revenue to revenue using ounces of silver sold over the estimated total ounces of silver expected to be delivered over the life of mine. |
Share based payments | (o) Share based payments (i) Stock options, restricted share units ( “ ” “ ” The Company grants stock options, and awards RSUs and DSUs to employees, officers and directors from time to time. At the date of grant or award, we estimate the fair values of the stock options, RSUs and DSUs which will eventually vest. These estimated fair values are recognized as share-based compensation expense over the specific vesting periods, with a corresponding increase to reserves, a component of equity. We determine the fair value of stock options using a Black-Scholes option pricing model with market-related inputs as of the date of grant. The fair value of RSUs and DSUs is the market value of the underlying shares as of the date of award. Cash-settled RSUs are remeasured using the market value of the underlying shares at the end of each reporting period. Stock option grants and RSU awards with several tranches of vesting are accounted for as separate awards with different vesting periods and fair values. We account for changes to the estimated number of awards that will eventually vest prospectively. (ii) Bonus shares The Company has issued bonus shares, which have vested upon the completion of a specified period of service. The fair value of the bonus shares is determined on the date of award; this fair value has been recognized in share-based compensation expense over the service period. |
Income taxes | (p) Income taxes Income tax expense comprises current and deferred tax. It is recognized in profit or loss except to the extent that it relates to a business combination or items recognized directly in equity or OCI. (i) Current tax Current tax expense comprises the expected tax payable on taxable income for the year and any adjustment to income tax payable in respect of previous years. It is measured using tax rates enacted or substantively enacted at the reporting date. Current tax also includes any withholding tax arising from interest and dividends. (ii) Deferred tax Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognized for: ● temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination, and at the time of the transaction, affects neither the accounting profit nor taxable profit (tax loss); ● temporary differences related to investments in subsidiaries, associates and joint arrangements to the extent that we are able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future; and ● taxable temporary differences arising on the initial recognition of goodwill. We recognize deferred tax assets for unused tax losses, unused tax credits and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be used. If the amount of taxable temporary differences is insufficient to recognize a deferred tax asset in full, then future taxable profits are considered based on the business plans for the individual taxable entity. We review deferred tax assets at each reporting date and reduce them when we consider it no longer probable that the related tax benefit will be realized. Unrecognized deferred tax assets are reassessed at each reporting date and recognized to the extent that it has become probable that future taxable profits will be available against which they can be used. Deferred tax is measured at the tax rates that are expected to apply to the temporary differences when they reverse, using tax rates enacted or substantively enacted at the reporting date. Deferred tax assets and liabilities are offset only when there are sufficient taxable temporary differences relating to the same taxation authority and the same taxable entity which are expected to reverse in the same period or in the carried back/forward period as the expected reversal of the deductible temporary difference. |
Earnings (loss) per share | (q) Earnings (loss) per share Basic earnings (loss) per share is based on profit (loss) attributable to common shareholders, divided by the weighted average number of common shares outstanding during the reporting period. Diluted earnings (loss) per share is based on profit (loss) attributable to common shareholders, divided by the weighted average number of common shares outstanding during the reporting period after adjusting for the effects of all dilutive potential ordinary shares. |
Business combinations | (r) We account for business combinations using the acquisition method when the acquired set of activities and assets meets the definition of a business and when control is transferred to the Company. In determining whether a particular set of activities and assets is a business, we assess whether the set of assets and activities acquired includes, at a minimum, an input and substantive process and whether the acquired set has the ability to produce outputs. The consideration transferred in the acquisition is generally measured at fair value, as are the identifiable net assets acquired. Any goodwill that arises is tested annually for impairment. Any gain on a bargain purchase is recognized in profit or loss immediately. We expense transaction costs as incurred, except if they are related to the issuance of debt or equity securities. The consideration transferred does not include amounts related to the settlement of pre-existing relationships. Such amounts are generally recognized in profit or loss. Any contingent consideration is measured at estimated fair value at the date of acquisition. If an obligation to pay contingent consideration that meets the definition of a financial instrument is classified as equity, then it is not remeasured and settlement is accounted for within equity. Otherwise, other contingent consideration is remeasured at fair value at each reporting date and subsequent changes in the fair value of the contingent consideration are recognized in profit or loss. If share-based payment awards (replacement awards) are required to be exchanged for awards held by the acquiree’s employees (acquiree’s awards), then all or a portion of the acquirer’s replacement awards is included in measuring the consideration transferred in the business combination. This determination is based on the market-based measure of the replacement awards compared with the market-based measure of the acquiree’s awards and the portion to which the replacement awards relate to pre-combination service. The results of businesses acquired during a reporting period are included in the consolidated financial statements starting from the date of acquisition. |
Financial instruments | (s) (i) Financial assets We initially recognize financial assets when the Company becomes party to the contractual provisions of the instrument. Subsequent to initial recognition, we classify financial assets as measured at amortized cost, fair value through other comprehensive income (“FVOCI”) or fair value through profit or loss (“FVTPL”) after considering both our business model for managing the financial asset and the contractual cash flow characteristics of the financial asset. A financial asset is measured at amortized cost if both of the following conditions are met: ● the asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows, and ● the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. A financial asset is measured at FVOCI if both of the following conditions are met: ● the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, and ● the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. We may make an irrevocable election at initial recognition to carry at FVOCI particular investments in equity instruments that would otherwise be measured at FVTPL. A financial asset is required to be measured at FVTPL unless it is measured at amortized cost or at FVOCI. If we change our business model for managing financial assets, we reclassify all affected financial assets on a prospective basis, without restating any previously recognized gains, losses or interest. If the asset is reclassified to fair value, we determine the fair value at the reclassification date, and recognize in profit or loss any gain or loss arising from a difference between the previous carrying amount and fair value. An embedded derivative is a component of a hybrid contract that also includes a non-derivative host, with the effect that some of the cash flows of the combined instrument vary in a way similar to a stand-alone derivative. A derivative that is attached to a financial instrument but is contractually transferable independently of that instrument, or has a different counterparty, is not an embedded derivative, and is treated as a separate financial instrument. Upon initial recognition, we measure a financial asset at its fair value. However, we measure trade receivables that do not have a significant financing component at their transaction price. After initial recognition, we measure financial assets at amortized cost, FVOCI, or FVTPL. Changes in fair value of a financial asset that is carried at FVTPL are recognized in profit or loss, and changes in fair value of a financial asset that is carried at FVOCI are recognized in other comprehensive income, unless it is part of a hedging relationship. Gains or losses on a financial asset that is carried at FVTPL are recognized in profit or loss, and gains or losses on a financial asset that is carried at FVOCI are recognized in other comprehensive income, unless it is part of a hedging relationship. A gain or loss on a financial asset that is measured at amortized cost and is not part of a hedging relationship is recognized in profit or loss when the asset is derecognized, impaired, amortized, or reclassified. (ii) We initially recognize financial liabilities when the Company becomes party to the contractual provisions of the instrument. At initial recognition, we measure each financial liability at its fair value. In the case of a financial liability not at FVTPL, we deduct transaction costs that are directly attributable to the issuance of the financial liability. Subsequent to initial recognition, we classify and measure all financial liabilities at amortized cost using the effective interest method, except for financial liabilities at FVTPL. We may, at initial recognition, irrevocably designate a financial liability as measured at FVTPL. (iii) We recognize a loss allowance for expected credit losses on financial assets, based on lifetime expected credit losses. For the Company’s trade receivables, we determine the lifetime expected losses for all of our trade receivables. The expected lifetime credit loss provision for the Company’s trade receivables is based on historical counterparty default rates and we adjust for relevant forward-looking information if necessary. |
Forthcoming requirements | (a) Amendments to IAS 1 and IFRS Practice Statement 2 Disclosure of Accounting Policies Amendments to IAS 8 Definition of Accounting Estimates Amendments to IAS 12 Deferred Tax related to Assets and Liabilities arising from a Single Transaction We are reviewing the amendments listed above and have not yet concluded the potential effects of these amendments on our financial position, changes in financial position, and results of operations. We plan to adopt the amendments on 1 January 2023. |
BASIS OF PREPARATION (Tables)
BASIS OF PREPARATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
BASIS OF PREPARATION | |
Schedule of basis of consolidation | Ownership Name Principal activity Dec 31, 2022 Dec 31, 2021 Location Minera Camino Rojo SA de CV Production 100 % 100 % Mexico Minera Cerro Quema SA Exploration 100 % 100 % Panama Gold Standard Ventures Corp. Holding company 100 % — Canada Gold Standard Ventures (US) Inc. Exploration 100 % — USA Madison Enterprises Inc. Exploration 100 % — USA Monitor Gold Corporation Exploration 100 % 100 % USA |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of estimated useful lives | Mine equipment Units-of-production over mineral reserves Plant equipment and related buildings Units-of-production over mineral reserves Other equipment Straight line over useful life Office equipment Straight line over useful life Vehicles Straight line over useful life, typically 4 years Hardware and software Straight line over useful life, typically 3 years |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
REVENUE | |
Schedule of revenues | Years ended December 31 2022 2021 Gold $ 192,394 $ 4,094 Silver 836 30 Revenue $ 193,230 $ 4,124 Customer A $ 129,866 $ 4,124 Customer B 47,937 — Others 15,427 — Revenue $ 193,230 $ 4,124 |
OPERATING COSTS (Tables)
OPERATING COSTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
OPERATING COSTS | |
Schedule of components of operating costs | Years ended December 31 2022 2021 Mining and processing costs $ 44,538 $ 1,247 Refining and transportation costs 1,059 33 $ 45,597 $ 1,280 |
Schedule of royalties | Years ended December 31 2022 2021 Camino Rojo Oxide 2% NSR royalty (note 14) $ 3,818 $ 111 Mexican 0.5% Extraordinary Mining Duty 1,001 — $ 4,819 $ 111 |
DEPLETION AND DEPRECIATION (Tab
DEPLETION AND DEPRECIATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
DEPLETION AND DEPRECIATION | |
Schedule of components of depletion, depreciation and amortization | Years ended December 31 2022 2021 Depletion of producing mineral property $ 5,806 $ — Depreciation of plant and equipment 9,147 — Depletion and depreciation $ 14,953 $ — |
EXPLORATION AND EVALUATION EX_2
EXPLORATION AND EVALUATION EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
EXPLORATION AND EVALUATION EXPENSES | |
Schedule of exploration and evaluation expenses | Years ended December 31 2022 2021 Camino Rojo Project $ 3,765 $ 9,908 Cerro Quema Project 7,176 4,771 Nevada projects 7,616 366 Other 382 63 $ 18,939 $ 15,108 |
GENERAL AND ADMINISTRATIVE EX_2
GENERAL AND ADMINISTRATIVE EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
GENERAL AND ADMINISTRATIVE EXPENSES | |
Schedule of general and administrative expenses | Years ended December 31 2022 2021 Office and administrative $ 2,921 $ 1,911 Professional fees 2,237 1,702 Regulatory and transfer agent 301 662 Salaries and benefits 5,454 2,932 $ 10,913 $ 7,207 |
INTEREST AND ACCRETION EXPENSE
INTEREST AND ACCRETION EXPENSE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
INTEREST AND ACCRETION EXPENSE | |
Schedule of components of interest and accretion expense | Years ended December 31 2022 2021 Interest (note 10(a)) $ 7,368 $ 32 Accretion (note 10(b)) 1,522 1,605 Interest and accretion expense $ 8,890 $ 1,637 Years ended December 31 2022 2021 Project loan (note 20) $ 869 $ — Credit Facility (note 22) 4,903 — Fresnillo obligation (note 23) 1,383 — Interest expense on leases (note 24) 87 32 Other 126 — $ 7,368 $ 32 Years ended December 31 2022 2021 Project loan (note 20) $ 261 $ — Newmont loan (note 21) 366 1,382 Credit Facility (note 22) 387 — Accretion of site closure provisions (note 25) 508 223 $ 1,522 $ 1,605 |
INVENTORY (Tables)
INVENTORY (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
INVENTORY | |
Schedule of inventories | December 31, December 31, 2022 2021 Current Stockpiled ore $ 1,869 $ 2,458 In-process inventory 15,961 6,513 Finished goods inventory 1,406 — Materials and supplies 3,210 686 Inventory – current $ 22,446 $ 9,657 Long term Stockpiled ore $ 4,096 $ 1,299 |
ACQUISITION OF GOLD STANDARD _2
ACQUISITION OF GOLD STANDARD VENTURES CORP. (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
ACQUISITION OF GOLD STANDARD VENTURES CORP. | |
Schedule of calculation of purchase consideration, assets acquired and liabilities assumed | Cash consideration $ 28 Estimated fair value of 43,688,556 common shares issued by the Company 149,363 Estimated fair value of 1,758,334 Replacement Options issued by the Company 1,647 Transaction costs 3,030 Total purchase price $ 154,068 Cash and cash equivalents $ 1,821 Restricted cash (pursuant to environmental bonding) 2,704 Receivables and other assets 2,170 Right of use assets 117 Trade and other payables (3,524) Lease liabilities (117) Asset retirement obligations (1,603) Deferred revenue (7,500) Subtotal (5,932) Mineral properties – Nevada – South Railroad Project 146,000 Mineral properties – Nevada – Lewis Project 14,000 Total assets acquired and liabilities assumed, net $ 154,068 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
PROPERTY, PLANT AND EQUIPMENT | |
Schedule of property, plant and equipment | Producing Machinery Other right mineral and Other of use property Buildings equipment assets assets Total Cost At December 31, 2020 $ — $ — $ 392 $ 435 $ 338 $ 1,165 Additions — 67 2,437 845 1,769 5,118 Transfers from mineral properties under construction — — 2,484 — — 2,484 Due to changes in exchange rates — (1) (75) (19) 12 (83) At December 31, 2021 — 66 5,238 1,261 2,119 8,684 Additions 6,616 1,788 3,272 666 2,300 14,642 Transfer from mineral properties under construction 127,002 58,869 36,684 608 — 223,163 Reclassification of capitalized interest (19,020) 11,585 7,341 94 — — Change in site closure provision (note 25) 1,155 (300) (190) — — 665 Leased assets derecognized at end of lease — — — — (215) (215) Due to changes in exchange rates — — — (9) (44) (53) At December 31, 2022 $ 115,753 $ 72,008 $ 52,345 $ 2,620 $ 4,160 $ 246,886 Accumulated depreciation At December 31, 2020 $ — $ — $ 235 $ 162 $ 58 $ 455 Depletion and depreciation — 6 115 127 352 600 Due to changes in exchange rates — — — (1) (5) (6) At December 31, 2021 — 6 350 288 405 1,049 Depletion and depreciation 9,641 6,280 4,541 421 764 21,647 Leased assets derecognized at end of lease — — — — (215) (215) Due to changes in exchange rates — — — (4) (7) (11) At December 31, 2022 $ 9,641 $ 6,286 $ 4,891 $ 705 $ 947 $ 22,470 Net book value At December 31, 2021 $ — $ 60 $ 4,888 $ 973 $ 1,714 $ 7,635 At December 31, 2022 $ 106,112 $ 65,722 $ 47,454 $ 1,915 $ 3,213 $ 224,416 |
MINERAL PROPERTIES AND RELATE_2
MINERAL PROPERTIES AND RELATED CONSTRUCTION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
MINERAL PROPERTIES AND RELATED CONSTRUCTION | |
Schedule of borrowing costs capitalized | At historical cost Accumulated Deposits to foreign Mineral construction Construction in Other costs exchange on Carrying properties vendors progress capitalized translation value At December 31, 2020 $ 39,272 $ 28,079 $ 4,845 $ 836 $ (1,760) $ 71,272 Additions 62,800 11,411 56,528 — — 130,739 Borrowing costs capitalized — — — 13,967 — 13,967 Change in site closure provision — — — 4,653 — 4,653 Transfer within categories — (37,832) 37,832 — — — Transfers to equipment — — (2,484) — — (2,484) Due to changes in exchange rates — — — — (4,398) (4,398) At December 31, 2021 $ 102,072 $ 1,658 $ 96,721 $ 19,456 $ (6,158) $ 213,749 Additions — — 5,636 — — 5,636 Borrowing costs capitalized — — — 4,085 — 4,085 Change in site closure provision — — — (238) — (238) Transfer within categories (4,060) (1,589) (509) — 6,158 — Transfer to producing mineral property (98,012) — (101,848) (23,303) — (223,163) Transfer to other non-current assets — (69) — — — (69) At December 31, 2022 $ — $ — $ — $ — $ — $ — |
EXPLORATION AND EVALUATION PR_2
EXPLORATION AND EVALUATION PROPERTIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Mineral Properties | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Schedule of exploration and evaluation properties | Nevada projects Cerro Quema Total Acquisition costs At December 31, 2020 and 2021 $ 314 $ 82,429 $ 82,743 Acquisition of Gold Standard Ventures Corp. (note 13) 160,000 — 160,000 At December 31, 2022 $ 160,314 $ 82,429 $ 242,743 |
TRADE AND OTHER PAYABLES (Table
TRADE AND OTHER PAYABLES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
TRADE AND OTHER PAYABLES | |
Summary of trade and other payables | December 31, December 31, 2022 2021 Trade payables $ 6,707 $ 5,966 Royalties payable 2,119 113 Payroll related liabilities 848 339 Current portion of lease obligations (note 24) 846 372 Other 1,188 26 $ 11,708 $ 6,816 |
ACCRUED LIABILITIES (Tables)
ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
ACCRUED LIABILITIES | |
Schedule of accrued liabilities | December 31, December 31, 2022 2021 Current Goods or services received awaiting vendor invoices $ 3,139 2,045 Land and water fees — 1,795 Payroll related 2,532 1,244 Accrued interest on Credit Facility (note 22) 1,660 — Restricted share units expected to be cash settled (note 28(b)) 352 — Other 284 575 Accrued liabilities – current $ 7,967 $ 5,659 Long term Payroll related $ 172 $ 161 |
LONG TERM DEBT (Tables)
LONG TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about borrowings [line items] | |
Schedule of long-tem debt | December 31, 2022 Current Long term Total Camino Rojo Project Loan (note 20) $ — $ — $ — Newmont loan (note 21) — — — Credit facility (note 22) 22,200 100,795 122,995 Fresnillo obligation (note 23) 22,800 — 22,800 $ 45,000 $ 100,795 $ 145,795 December 31, 2021 Current Long term Total Camino Rojo Project Loan (note 20) $ — $ 113,260 $ 113,260 Newmont loan (note 21) 10,293 — 10,293 Credit facility (note 22) — — — Fresnillo obligation (note 23) 15,000 22,800 37,800 $ 25,293 $ 136,060 $ 161,353 |
CAMINO ROJO PROJECT LOAN (Table
CAMINO ROJO PROJECT LOAN (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about borrowings [line items] | |
Schedule of long-tem debt | December 31, 2022 Current Long term Total Camino Rojo Project Loan (note 20) $ — $ — $ — Newmont loan (note 21) — — — Credit facility (note 22) 22,200 100,795 122,995 Fresnillo obligation (note 23) 22,800 — 22,800 $ 45,000 $ 100,795 $ 145,795 December 31, 2021 Current Long term Total Camino Rojo Project Loan (note 20) $ — $ 113,260 $ 113,260 Newmont loan (note 21) 10,293 — 10,293 Credit facility (note 22) — — — Fresnillo obligation (note 23) 15,000 22,800 37,800 $ 25,293 $ 136,060 $ 161,353 |
Camino Rojo project loan | |
Disclosure of detailed information about borrowings [line items] | |
Schedule of long-tem debt | Loan Interest and Transaction advances accretion costs Net At December 31, 2020 $ 75,000 $ — $ (14,304) $ 60,696 Advances during the year 50,000 — (165) 49,835 Accretion during the period, capitalized — 9,613 2,817 12,430 Cash interest paid — (9,613) — (9,613) Foreign exchange — — (88) (88) At December 31, 2021 125,000 — (11,740) 113,260 Accretion during the period, capitalized — 2,764 848 3,612 Accretion during the period, expensed — 869 261 1,130 Cash interest paid — (3,633) — (3,633) Foreign exchange — — (88) (88) Principal repayment including early repayment premium (127,500) — — (127,500) Loss on early settlement of project loan 2,500 — 10,719 13,219 At December 31, 2022 $ — $ — $ — $ — |
Schedule of loss on early settlement of borrowings | 2022 2021 Unamortized transaction costs written off (non-cash) $ 10,719 $ — Early repayment premium paid (cash) 2,500 — Loss on early settlement of project loan $ 13,219 $ — |
NEWMONT LOAN (Tables)
NEWMONT LOAN (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
INTEREST AND ACCRETION EXPENSE | |
Schedule of long-tem debt | December 31, 2022 Current Long term Total Camino Rojo Project Loan (note 20) $ — $ — $ — Newmont loan (note 21) — — — Credit facility (note 22) 22,200 100,795 122,995 Fresnillo obligation (note 23) 22,800 — 22,800 $ 45,000 $ 100,795 $ 145,795 December 31, 2021 Current Long term Total Camino Rojo Project Loan (note 20) $ — $ 113,260 $ 113,260 Newmont loan (note 21) 10,293 — 10,293 Credit facility (note 22) — — — Fresnillo obligation (note 23) 15,000 22,800 37,800 $ 25,293 $ 136,060 $ 161,353 |
Newmont loan | |
INTEREST AND ACCRETION EXPENSE | |
Schedule of long-tem debt | Year ended Year ended December 31, December 31, 2022 2021 Beginning of the year $ 10,293 $ 9,440 Accretion during the year 366 1,382 Modification gains arising from changes in estimates — (220) Foreign exchange 177 (309) Principal repayment (10,836) — End of the year $ — $ 10,293 |
CREDIT FACILITY (Tables)
CREDIT FACILITY (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about borrowings [line items] | |
Schedule of long-tem debt | December 31, 2022 Current Long term Total Camino Rojo Project Loan (note 20) $ — $ — $ — Newmont loan (note 21) — — — Credit facility (note 22) 22,200 100,795 122,995 Fresnillo obligation (note 23) 22,800 — 22,800 $ 45,000 $ 100,795 $ 145,795 December 31, 2021 Current Long term Total Camino Rojo Project Loan (note 20) $ — $ 113,260 $ 113,260 Newmont loan (note 21) 10,293 — 10,293 Credit facility (note 22) — — — Fresnillo obligation (note 23) 15,000 22,800 37,800 $ 25,293 $ 136,060 $ 161,353 |
Schedule of borrowing costs capitalized | At historical cost Accumulated Deposits to foreign Mineral construction Construction in Other costs exchange on Carrying properties vendors progress capitalized translation value At December 31, 2020 $ 39,272 $ 28,079 $ 4,845 $ 836 $ (1,760) $ 71,272 Additions 62,800 11,411 56,528 — — 130,739 Borrowing costs capitalized — — — 13,967 — 13,967 Change in site closure provision — — — 4,653 — 4,653 Transfer within categories — (37,832) 37,832 — — — Transfers to equipment — — (2,484) — — (2,484) Due to changes in exchange rates — — — — (4,398) (4,398) At December 31, 2021 $ 102,072 $ 1,658 $ 96,721 $ 19,456 $ (6,158) $ 213,749 Additions — — 5,636 — — 5,636 Borrowing costs capitalized — — — 4,085 — 4,085 Change in site closure provision — — — (238) — (238) Transfer within categories (4,060) (1,589) (509) — 6,158 — Transfer to producing mineral property (98,012) — (101,848) (23,303) — (223,163) Transfer to other non-current assets — (69) — — — (69) At December 31, 2022 $ — $ — $ — $ — $ — $ — |
Credit Facility | |
Disclosure of detailed information about borrowings [line items] | |
Schedule of long-tem debt | Revolving Term facility facility Total At December 31, 2021 $ — $ — $ — Advances during the year 100,000 30,000 130,000 Transaction costs paid, which are accreted over the term of each facility (1,435) (431) (1,866) Interest expense during the year 3,772 1,131 4,903 Accretion during the year 304 83 387 Interest paid during the year (2,481) (738) (3,219) Principal repayments during the year (5,550) — (5,550) Reallocated to accrued interest payable (1,272) (388) (1,660) At December 31, 2022 $ 93,338 $ 29,657 $ 122,995 Current 22,200 — 22,200 Non-current 71,138 29,657 100,795 $ 93,338 $ 29,657 $ 122,995 |
Schedule of borrowing costs capitalized | Transaction costs Allocated to the term facility $ 1,435 Accreted over the expected life (5 years) Allocated to the revolving facility, drawn amount 431 Accreted over the expected life (3 years) Allocated to the revolving facility, undrawn amount 287 Expensed at loan inception date Total transaction costs incurred $ 2,153 |
FRESNILLO OBLIGATION (Tables)
FRESNILLO OBLIGATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
INTEREST AND ACCRETION EXPENSE | |
Schedule of long-tem debt | December 31, 2022 Current Long term Total Camino Rojo Project Loan (note 20) $ — $ — $ — Newmont loan (note 21) — — — Credit facility (note 22) 22,200 100,795 122,995 Fresnillo obligation (note 23) 22,800 — 22,800 $ 45,000 $ 100,795 $ 145,795 December 31, 2021 Current Long term Total Camino Rojo Project Loan (note 20) $ — $ 113,260 $ 113,260 Newmont loan (note 21) 10,293 — 10,293 Credit facility (note 22) — — — Fresnillo obligation (note 23) 15,000 22,800 37,800 $ 25,293 $ 136,060 $ 161,353 |
Fresnillo obligation | |
INTEREST AND ACCRETION EXPENSE | |
Schedule of long-tem debt | Year ended Year ended December 31, December 31, 2022 2021 Beginning of the year $ 37,800 $ — Initial recognition — 37,800 Accretion capitalized 473 1,654 Accretion expensed (note 10) 1,383 — Principal repaid (15,000) — Cash interest paid (1,856) (1,654) End of the year $ 22,800 $ 37,800 Current 22,800 15,000 Non-current — 22,800 $ 22,800 $ 37,800 |
LEASE OBLIGATIONS (Tables)
LEASE OBLIGATIONS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
LEASE OBLIGATIONS | |
Schedule of lease liabilities | Year ended Year ended December 31, December 31, 2022 2021 Beginning of year $ 1,401 $ 273 Additions 2,300 1,769 Interest expense 87 32 Lease payments (661) (681) Due to changes in exchange rates 46 8 End of period $ 3,173 $ 1,401 Current $ 846 $ 372 Non-current 2,327 1,029 $ 3,173 $ 1,401 |
Schedule of lease expenses recognized | Year ended Year ended December 31, December 31, 2022 2021 Interest on lease liabilities $ 87 $ 32 Variable lease payments not included in the measurement of lease liabilities 15,586 4,579 Expenses relating to short-term leases 168 131 Expenses relating to leases of low-value assets, excluding short-term leases 108 155 $ 15,949 $ 4,897 |
SITE CLOSURE PROVISIONS (Tables
SITE CLOSURE PROVISIONS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SITE CLOSURE PROVISIONS | |
Schedule of reconciliation of changes in site closure provisions | Cerro Quema Nevada Camino Rojo Project projects Total At December 31, 2020 $ 175 $ 343 $ — $ 518 Change in estimated cash flows resulting from current activities 4,738 — — 4,738 Accretion during the period 223 — — 223 Foreign exchange (19) — — (19) At December 31, 2021 5,117 343 — 5,460 Acquisition of Gold Standard (note 13) — — 1,603 1,603 Changes in cost estimates 351 — — 351 Change in estimated cash flows resulting from current activities 427 — — 427 Remediation activities conducted during the period (88) — — (88) Accretion during the period (note 10) 494 — 14 508 At December 31, 2022 $ 6,301 $ 343 $ 1,617 $ 8,261 Current $ — $ — $ — $ — Non-current 6,301 343 1,617 8,261 $ 6,301 $ 343 $ 1,617 $ 8,261 |
Schedule of inputs used for site closure provisions | Cerro Quema Nevada Camino Rojo Project projects Estimated settlement dates 2033 to 2047 — 2034 Undiscounted risk-adjusted cash flows $ 8,644 $ 343 $ 1,724 Inflation rate 7.0 % — 2.7 % Discount rate 9.6 % — 3.2 % |
SHARE CAPITAL (Tables)
SHARE CAPITAL (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share capital | |
Disclosure of schedule of warrants outstanding | Exercise December 31 December 31 Expiry date price 2021 Exercised Expired 2022 June 12, 2022 C$ 1.65 4,742,500 (4,742,500) — — November 7, 2022 C$ 1.40 3,000,000 (3,000,000) — — December 18, 2026 C$ 3.00 32,500,000 (2,955,000) — 29,545,000 Total number of warrants 40,242,500 (10,697,500) — 29,545,000 Weighted average exercise price C$ 2.72 C$ 1.95 C$ — C$ 3.00 Exercise December 31 December 31 Expiry date price 2020 Exercised Expired 2021 February 15, 2021 C$ 2.35 7,782,994 (7,439,744) (343,250) — July 8, 2021 C$ 0.62 370,000 (370,000) — — June 12, 2022 C$ 1.65 4,992,500 (250,000) — 4,742,500 November 7, 2022 C$ 1.40 3,000,000 — — 3,000,000 December 18, 2026 C$ 3.00 32,500,000 — — 32,500,000 Total number of warrants 48,645,494 (8,059,744) (343,250) 40,242,500 Weighted average exercise price C$ 2.64 C$ 2.25 C$ 2.35 C$ 2.72 |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
EARNINGS (LOSS) PER SHARE | |
Summary of earnings (loss) per share calculated using the weighted average number of common shares outstanding | (a) Years ended December 31 2022 2021 Income (loss) for the period $ 45,770 $ (26,278) Weighted average number of common shares (thousands) 272,202 241,379 Basic earnings (loss) per share $ 0.17 $ (0.11) (b) Years ended December 31 2022 2021 Income (loss) for the period $ 45,770 $ (26,278) Weighted average number of common shares (thousands) 272,202 241,379 Weighted average shares dilution adjustments: Warrants 14,526 — Options 4,544 — RSUs 392 — DSUs 652 — Bonus shares 500 — Weighted average number of ordinary shares 292,816 241,379 Diluted earnings (loss) per share $ 0.16 $ (0.11) |
SHARE-BASED PAYMENTS (Tables)
SHARE-BASED PAYMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SHARE-BASED PAYMENTS | |
Summary of share-based compensation recorded during the year | Years ended December 31 Share- based payments expense 2022 2021 Stock options (note 28(a)) $ 1,396 $ 1,350 Restricted share units (note 28(b)) 743 738 Deferred share units (note 28(c)) 308 241 Share based payments expense $ 2,447 $ 2,329 |
Stock options | |
SHARE-BASED PAYMENTS | |
Summary of status of share option plan and changes during the year | 2022 2021 Weighted Weighted average average Stock options outstanding Number exercise price Number exercise price Beginning of year 9,900,874 C$ 1.86 9,959,927 C$ 1.60 Replacement Options issued (note 13) 1,758,334 8.43 — — Granted 1,278,264 5.56 678,347 4.74 Exercised (3,674,769) 1.34 (687,400) 0.87 Expired, forfeited or cancelled (83,814) 16.81 (50,000) 1.39 End of year 9,178,889 C$ 3.71 9,900,874 C$ 1.86 Vested, end of year 7,701,986 C$ 3.38 8,704,157 C$ 1.63 |
Summary of information about share options outstanding and exercisable | The stock options outstanding at December 31, 2022, were as follows: Exercise Remaining life Number Expiry date price (C$) (years) Number vested January 15, 2023 16.43 0.0 5,964 5,964 February 1, 2023 4.78 0.1 7,731 — February 26, 2023 7.43 0.2 129 43 February 28, 2023 1.06 0.2 30,000 30,000 March 5, 2023 17.69 0.2 148,446 148,446 May 31, 2023 1.25 0.4 400,000 400,000 June 23, 2023 1.06 - 5.98 0.5 295,749 246,797 June 27, 2023 1.25 0.5 746,770 746,770 July 1, 2023 1.06 - 5.98 0.5 224,773 189,351 September 10, 2023 1.25 0.7 100,000 100,000 November 13, 2023 1.30 0.9 250,000 250,000 January 31, 2024 14.59 1.1 112,611 112,611 March 29, 2024 1.06 1.2 1,453,417 1,453,417 August 12, 2024 4.78 - 8.81 1.6 1,280,635 1,280,635 August 13, 2024 1.65 1.6 103,212 103,212 January 30, 2025 8.81 2.1 17,316 17,316 March 25, 2025 2.21 2.2 871,825 871,825 April 16, 2025 2.39 2.3 600,000 600,000 April 20, 2025 2.58 2.3 50,000 50,000 July 1, 2025 3.82 2.5 300,000 300,000 August 24, 2025 6.03 2.6 200,000 200,000 September 1, 2025 5.80 2.7 50,000 50,000 September 23, 2025 8.55 2.7 4,770 4,770 December 4, 2025 7.63 2.9 5,964 5,964 January 21, 2026 7.05 - 7.43 3.1 50,388 42,922 March 24, 2026 4.80 3.2 512,924 341,944 April 19, 2026 4.76 3.3 50,000 33,333 October 4, 2026 4.04 3.8 50,000 33,333 January 10, 2027 4.78 4.0 40,566 — March 1, 2027 5.37 4.2 250,000 83,333 March 24, 2027 5.98 4.2 611,515 — June 23, 2027 3.88 4.5 26,580 — July 4, 2027 3.71 4.5 50,000 — December 5, 2027 5.06 4.9 171,960 — December 30, 2027 5.48 5.0 105,644 — Total number of stock options 9,178,889 7,701,986 The stock options outstanding at December 31, 2021, were as follows: Exercise Remaining life Number Expiry date price (C$) (years) Number vested June 23, 2022 1.39 0.5 2,200,000 2,200,000 May 31, 2023 1.25 1.4 700,000 700,000 June 27, 2023 1.25 1.5 944,514 944,514 September 10, 2023 1.25 1.7 100,000 100,000 November 13, 2023 1.30 1.9 1,000,000 1,000,000 March 29, 2024 1.06 2.2 1,835,227 1,835,227 May 15, 2024 1.00 2.4 117,450 117,450 August 13, 2024 1.65 2.6 103,212 103,212 March 25, 2025 2.21 3.2 1,022,124 677,646 April 16, 2025 2.39 3.3 600,000 400,000 April 20, 2025 2.58 3.3 50,000 33,334 July 1, 2025 3.82 3.5 300,000 200,000 August 24, 2025 6.03 3.6 200,000 133,334 September 1, 2025 5.80 3.7 50,000 33,334 March 24, 2026 4.80 4.2 578,347 192,774 April 19, 2026 4.76 4.3 50,000 16,666 October 4, 2026 4.04 4.8 50,000 16,666 Total number of stock options 9,900,874 8,704,157 |
RSUs | |
SHARE-BASED PAYMENTS | |
Summary of information about number of units of other equity instruments and their weighted average fair value | Number of RSUs outstanding: 2022 2021 Outstanding, January 1 707,840 921,356 Awarded 172,301 235,091 Vested and settled (402,430) (448,607) Forfeitures during the period (34,444) — Outstanding, December 31 443,267 707,840 Number vesting in the year Number of RSUs outstanding: Total 2022 2023 2024 2025 Outstanding, December 31, 2021 707,840 444,301 185,179 78,360 — Outstanding, December 31, 2022 443,267 — 262,738 126,812 53,717 |
Deferred Share Unit Plan | |
SHARE-BASED PAYMENTS | |
Summary of information about number of units of other equity instruments and their weighted average fair value | Number of DSUs outstanding: 2022 2021 Outstanding, January 1 707,028 644,525 Awarded and vested immediately 69,290 62,503 Awarded and vested immediately (216,593) — Outstanding, December 31 559,725 707,028 |
Bonus shares | |
SHARE-BASED PAYMENTS | |
Summary of information about number of units of other equity instruments and their weighted average fair value | Number of bonus shares outstanding: Year 2022 Year 2021 Outstanding, December 31 500,000 500,000 Vested, December 31 500,000 500,000 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
RELATED PARTY TRANSACTIONS | |
Schedule of compensation of key management | Years ended December 31 2022 2021 Salaries and short term incentives paid $ 3,871 $ 1,580 Directors’ fees 291 183 Share based payments 1,987 1,750 $ 6,149 $ 3,513 |
SUPPLEMENTAL CASH FLOW INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SUPPLEMENTAL CASH FLOW INFORMATION | |
Schedule of changes in non-cash working capital | Years ended December 31 2022 2021 Accounts receivable and prepaid expenses $ (47) $ (604) Inventory (9,177) (10,846) Value added taxes recoverable (8,044) — Trade and other payables 3,378 3,335 Accrued liabilities (1,891) 1,470 Changes in non-cash working capital $ (15,781) $ (6,645) |
Schedule of supplemental cash flow information | Years ended December 31 2022 2021 Financing activities Stock options exercised, credited to share capital with an offset to reserves $ 3,033 $ 277 Warrants exercised, credited to share capital with an offset to reserves 5,143 2,140 Common shares issued on maturity of RSUs, credited to share capital with an offset to reserves 541 487 Common shares issued on maturity of DSUs, credited to share capital with an offset to reserves 324 — Fresnillo obligation, credited, with an offset to mineral properties — 37,800 Investing activities Common shares issued upon acquisition of Gold Standard, credited to share capital with an offset to the assets acquired and liabilities assumed (note 13) 149,363 — Replacement options issued upon acquisition of Gold Standard, credited to reserves with an offset to the assets acquired and liabilities assumed (note 13) 1,647 — Initial recognition of right of use assets with an offset to lease obligation 2,300 1,769 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SEGMENT INFORMATION | |
Schedule of mineral assets and equipment by geographic region | (i) Mexico Panama Nevada Corporate Total Year ended December 31, 2022 Revenue (note 5) $ 193,109 $ — $ — $ 121 $ 193,230 Cost of sales (65,320) — — (49) (65,369) Earnings from mining operations 127,789 — — 72 127,861 Exploration and evaluation expenses (note 9) (3,765) (7,176) (7,616) (382) (18,939) General and administrative expenses (note 8) — — — (10,913) (10,913) Depreciation (23) (15) (45) (194) (277) Share based payments (note 28) (37) (70) — (2,340) (2,447) Interest income 1,844 — — 323 2,167 Interest and accretion expense (2,315) — (35) (6,540) (8,890) Loss on early settlement of project loan (note 20) — — — (13,219) (13,219) Foreign exchange gain (778) — 37 3,755 3,014 Other — — 39 2 41 Income taxes (29,478) — — (3,150) (32,628) Income (loss) for the period $ 93,237 $ (7,261) $ (7,620) $ (32,586) $ 45,770 Mexico Panama Nevada Corporate Total Year ended December 31, 2021 Revenue (note 5) $ 4,124 $ — $ — $ — $ 4,124 Cost of sales (1,391) — — — (1,391) Earnings from mining operations 2,733 — — — 2,733 Exploration and evaluation expenses (note 9) (9,908) (4,771) (366) (63) (15,108) General and administrative expenses (note 8) — — — (7,207) (7,207) Depreciation — (36) — (118) (154) Share based payments (note 28) (89) (51) — (2,189) (2,329) Interest and finance costs (1,406) — — 110 (1,296) Foreign exchange (3,956) — — 230 (3,726) Other 220 — — 589 809 Income (loss) for the period $ (12,406) $ (4,858) $ (366) $ (8,648) $ (26,278) (ii) Mexico Panama Nevada Corporate Total At December 31, 2022 Property, plant and equipment $ 222,767 $ 39 $ 577 $ 1,033 $ 224,416 Exploration and evaluation properties — 82,429 160,314 — 242,743 Total assets 348,390 83,291 163,857 18,278 613,816 Mexico Panama Nevada Corporate Total At December 31, 2021 Equipment $ 7,466 $ 37 $ — $ 132 $ 7,635 Mineral properties under construction 213,749 — — — 213,749 Exploration and evaluation properties — 82,429 314 — 82,743 Total assets 267,403 83,162 314 14,016 364,895 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Financial Instruments | |
Schedule of financial assets and liabilities by level within the fair value hierarchy | Fair value Carrying Short term Total Classification value Level 1 Level 2 Level 3 nature fair value Financial assets Cash and cash equivalents FVTPL $ 96,278 $ 96,278 $ — $ — $ — $ 96,278 Accounts receivable Amortized cost 317 21 — — 296 317 Restricted cash Amortized cost 3,432 3,432 — — — 3,432 $ 100,027 $ 99,731 $ — $ — $ 296 $ 100,027 Financial liabilities Trade and other payables Amortized cost $ 8,851 $ — $ — $ — $ 8,851 $ 8,851 Accrued liabilities Amortized cost 7,967 352 — — 7,615 7,967 Lease obligation Amortized cost 3,173 — 3,173 — — 3,173 Credit facility Amortized cost 122,995 — — 124,450 — 124,450 Fresnillo obligation Amortized cost 22,800 — — 22,296 — 22,296 $ 165,786 $ 352 $ 3,173 $ 146,746 $ 16,466 $ 166,737 Fair value Quoted prices in Approximate active Significant fair value market for other Significant due to short identical observable unobservable term nature Carrying assets inputs inputs of the Total Classification value (Level 1) (Level 2) (Level 3) instrument Fair Value Financial assets Cash and cash equivalents FVTPL $ 20,516 $ 20,516 $ — $ — $ — $ 20,516 Accounts receivable Amortized cost 299 16 — — 283 299 Restricted cash Amortized cost 3,680 — 3,680 — — 3,680 $ 24,495 20,532 $ 3,680 $ — $ 283 $ 24,495 Financial liabilities Trade payables Amortized cost $ 5,966 $ — $ — $ — $ 5,966 $ 5,966 Accrued liabilities Amortized cost 5,659 — — — 5,659 5,659 Lease obligation Amortized cost 1,401 — 1,401 — — 1,401 Camino Rojo project loan Amortized cost 113,260 — 137,746 — — 137,746 Newmont loan Amortized cost 10,293 — 10,533 — — 10,533 Fresnillo obligation Amortized cost 37,800 — 37,800 — — 37,800 $ 174,379 $ — $ 187,480 $ — $ 11,625 $ 199,105 |
Liquidity risk | |
Financial Instruments | |
Schedule of risk management | At December 31, 2022, our financial liabilities had expected maturity dates as follows: Between Between Less than 3 months and 1 year and More than 3 months 1 year 3 years 3 years Total Financial liabilities Trade and other payables $ 8,851 $ — $ — $ — $ 8,851 Accrued liabilities 7,967 — — — 7,967 Lease obligation 248 743 1,310 1,226 3,527 Credit facility 7,810 22,868 85,566 29,762 146,006 Fresnillo obligation 285 23,563 — — 23,848 $ 25,161 $ 47,174 $ 86,876 $ 30,988 $ 190,199 At December 31, 2021, our financial liabilities had expected maturity dates as follows: Between Between Less than 3 months and 1 year and More than 3 months 1 year 3 years 3 years Total Financial liabilities Trade payables $ 5,966 $ — $ — $ — $ 5,966 Accrued liabilities 5,659 — — — 5,659 Lease obligation 114 289 494 520 1,417 Camino Rojo project loan 2,750 8,250 146,083 — 157,083 Newmont loan — 10,662 — — 10,662 Fresnillo obligation 473 16,357 23,848 — 40,678 $ 14,962 $ 35,558 $ 170,425 $ 520 $ 221,465 |
Currency risk | |
Financial Instruments | |
Schedule of risk management | Canadian dollars US dollars Mexican pesos (thousands) (thousands) (thousands) Cash $ 15,498 $ 84,771 $ 1,250 Accounts receivable 28 29 5,475 Restricted funds 70 3,380 — Trade payables (337) (6,104) (87,298) Accrued liabilities (2,972) (4,447) (25,679) Lease obligations (1,323) (1,103) (21,158) Credit facility — (122,995) — Fresnillo obligation — (22,800) — Total foreign currency 10,964 (69,269) (127,410) Exchange rate 1.3544 1.0000 19.3615 Equivalent US dollars $ 8,095 $ (69,269) $ (6,581) Our financial instruments were denominated in the following currencies as at December 31, 2021: Canadian dollars US dollars Mexican pesos (thousands) (thousands) (thousands) Cash $ 7,583 $ 12,061 $ 50,923 Accounts receivable 20 4 5,733 Restricted funds 155 509 62,745 Trade payables (128) (2,642) (66,350) Accrued liabilities (1,637) (2,226) (44,070) Lease obligations (74) (520) (16,935) Camino Rojo project loan — (113,260) — Newmont loan — — (211,881) Fresnillo obligation — (37,800) — Total foreign currency 5,919 (143,874) (219,835) Exchange rate 1.2678 1.0000 20.5835 Equivalent US dollars $ 4,669 $ (143,874) $ (10,680) |
TAX EXPENSE (Tables)
TAX EXPENSE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
TAX EXPENSE | |
Schedule of tax expense | Years ended December 31 2022 2021 Current income tax expense $ 22,512 $ — Mexican 7.5% Special Mining Duty expense 9,371 — Deferred income tax (recovery) (2,698) — Deferred Mexican 7.5% Special Mining Duty expense 293 — Withholding taxes 3,150 — Tax expense $ 32,628 $ — |
Schedule of reconciliation of effective tax rate | 2022 2021 Income (loss) before tax $ 78,398 $ (26,278) Statutory income tax rate 26.8 % 26.8 % Expected income tax $ 21,036 $ (7,042) Differences between Canadian and foreign tax rates 4,117 (744) Items not deductible for tax purposes 4,508 2,850 Share based compensation 107 587 Change in unrecognized deductible temporary differences (7,778) 6,208 True ups 1,901 (1,913) Effect of changes in tax rates from prior years — (71) Effect of changes in foreign exchange rates (2,371) 393 Mexican Special Mining Duty 9,576 — Inflationary adjustment and other 1,532 (268) Total income taxes 32,628 — Effective tax rate 41.6 % n/a |
Schedule of unrecognized deductible temporary differences | December 31 2022 2021 Mineral properties and exploration expenditures $ 30,467 $ 55,548 Equipment 1,251 1,814 Site closure provisions 356 5,460 Long term debt 6,570 — Share issue costs 3,452 5,724 Non capital losses 53,436 41,343 Intercompany debt — 413 Other 154 5,202 Unrecognized deductible temporary differences $ 95,686 $ 115,504 |
Schedule of recognized deferred tax assets and liabilities | December 31 2022 2021 Property, plant and equipment $ (216) $ (8,173) Site closure provisions 2,363 — Long term debt — (1,786) Non capital losses 1,397 10,447 Intercompany debt (1,619) — Other 480 (488) Recognized deferred tax assets (liabilities) $ 2,405 $ — |
Schedule of deductible temporary differences expiry dates | Tax losses December 31 expire in years 2022 2021 Canada 2025 to 2042 $ 61,214 $ 46,354 Mexico 2027 to 2031 — 29,851 Panama 2023 to 2027 736 655 United States indefinite 27,086 16 |
RECLASSIFICATION OF PRIOR PERIO
RECLASSIFICATION OF PRIOR PERIOD FIGURES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of reclassifications or changes in presentation [abstract] | |
Schedule of reclassifications of prior period figures - IS | 2021 As previously presented Interest income and finance costs $ (1,296) As currently presented Interest income $ 341 Interest and accretion expense (1,637) $ (1,296) Revenue As previously presented $ 4,091 Refining and transportation reclassified to operating costs 33 As currently presented $ 4,124 Operating costs As previously presented $ 1,247 Refining and transportation reclassified from revenue 33 As currently presented $ 1,280 |
Schedule of reclassifications of prior period figures - CF | 2021 Operating activities – As previously presented Other gains and losses $ (211) Exploration paid via issuance of common shares 150 Changes in site closure provision charged to exploration expense 84 $ 23 Operating activities – As currently presented Other $ 23 Financing activities – As previously presented Proceeds from the issuance of common shares, net of issuance costs $ 34,442 Proceeds from the exercise of warrants 14,279 Proceeds from the exercise of stock options 475 Share issuance costs (1,000) $ 48,196 Financing activities – As currently presented Proceeds from the issuance of common shares, net of issuance costs $ 33,442 Proceeds from the issuance of stock options and warrants 14,754 $ 48,196 |
BASIS OF PREPARATION (Details)
BASIS OF PREPARATION (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Minera Camino Rojo SA de CV | ||
Subsidiaries | ||
Proportion of ownership interest in subsidiary | 100% | 100% |
Principal place of business of subsidiary | Mexico | |
Minera Cerro Quema SA | ||
Subsidiaries | ||
Proportion of ownership interest in subsidiary | 100% | 100% |
Principal place of business of subsidiary | Panama | |
Gold Standard Ventures Corp. | ||
Subsidiaries | ||
Proportion of ownership interest in subsidiary | 100% | |
Principal place of business of subsidiary | Canada | |
Gold Standard Ventures (US) Inc. | ||
Subsidiaries | ||
Proportion of ownership interest in subsidiary | 100% | |
Principal place of business of subsidiary | USA | |
Madison Enterprises Inc. | ||
Subsidiaries | ||
Proportion of ownership interest in subsidiary | 100% | |
Principal place of business of subsidiary | USA | |
Monitor Gold Corporation | ||
Subsidiaries | ||
Proportion of ownership interest in subsidiary | 100% | 100% |
Principal place of business of subsidiary | USA |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES - Equipment (Details) | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
PROPERTY, PLANT AND EQUIPMENT | |
Impairment loss | $ 0 |
Vehicles | |
PROPERTY, PLANT AND EQUIPMENT | |
Useful life | 4 years |
Computer hardware and software | |
PROPERTY, PLANT AND EQUIPMENT | |
Useful life | 3 years |
REVENUE (Details)
REVENUE (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of major customers [line items] | ||
Gold | $ 192,394 | $ 4,094 |
Silver | 836 | 30 |
Revenue | 193,230 | 4,124 |
Revenue | 193,230 | 4,124 |
Customer A | ||
Disclosure of major customers [line items] | ||
Revenue | 129,866 | $ 4,124 |
Customer B | ||
Disclosure of major customers [line items] | ||
Revenue | 47,937 | |
Other Customers | ||
Disclosure of major customers [line items] | ||
Revenue | $ 15,427 |
OPERATING COSTS - Operating cos
OPERATING COSTS - Operating costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
OPERATING COSTS | ||
Mining and processing costs | $ 44,538 | $ 1,247 |
Refining and transportation costs | 1,059 | 33 |
Total operating costs | $ 45,597 | $ 1,280 |
OPERATING COSTS - Royalties (De
OPERATING COSTS - Royalties (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of royalties [line items] | ||
Royalties | $ 4,819 | $ 111 |
Camino Rojo Project | ||
Disclosure of royalties [line items] | ||
Royalties | 3,818 | $ 111 |
Mexican 0.5% Extraordinary Mining Duty | ||
Disclosure of royalties [line items] | ||
Royalties | $ 1,001 |
DEPLETION AND DEPRECIATION (Det
DEPLETION AND DEPRECIATION (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
DEPLETION AND DEPRECIATION | |
Depletion of producing mineral property | $ 5,806 |
Depreciation of plant and equipment | 9,147 |
Depletion and depreciation | $ 14,953 |
EXPLORATION AND EVALUATION EX_3
EXPLORATION AND EVALUATION EXPENSES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Subsidiaries | ||
EXPLORATION AND EVALUATION EXPENSES | $ 18,939 | $ 15,108 |
Camino Rojo Project | ||
Subsidiaries | ||
EXPLORATION AND EVALUATION EXPENSES | 3,765 | 9,908 |
Cerro Quema Project | ||
Subsidiaries | ||
EXPLORATION AND EVALUATION EXPENSES | 7,176 | 4,771 |
Nevada projects | ||
Subsidiaries | ||
EXPLORATION AND EVALUATION EXPENSES | 7,616 | 366 |
Other | ||
Subsidiaries | ||
EXPLORATION AND EVALUATION EXPENSES | $ 382 | $ 63 |
GENERAL AND ADMINISTRATIVE EX_3
GENERAL AND ADMINISTRATIVE EXPENSES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
GENERAL AND ADMINISTRATIVE EXPENSES | ||
Office and administrative | $ 2,921 | $ 1,911 |
Professional fees | 2,237 | 1,702 |
Regulatory and transfer agent | 301 | 662 |
Salaries and benefits | 5,454 | 2,932 |
Total general and administrative expense | $ 10,913 | $ 7,207 |
INTEREST AND ACCRETION EXPENS_2
INTEREST AND ACCRETION EXPENSE - Components (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
INTEREST AND ACCRETION EXPENSE | ||
Interest | $ 7,368 | $ 32 |
Accretion | 1,522 | 1,605 |
Interest and accretion expense | $ 8,890 | $ 1,637 |
INTEREST AND ACCRETION EXPENS_3
INTEREST AND ACCRETION EXPENSE - Interest Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
INTEREST AND ACCRETION EXPENSE | ||
Interest on lease liabilities | $ 87 | $ 32 |
Other | 126 | |
Total interest expense | 7,368 | $ 32 |
Project loan (note XXX) | ||
INTEREST AND ACCRETION EXPENSE | ||
Interest expense on borrowings | 869 | |
Credit Facility | ||
INTEREST AND ACCRETION EXPENSE | ||
Interest expense on borrowings | 4,903 | |
Fresnillo obligation | ||
INTEREST AND ACCRETION EXPENSE | ||
Interest expense on borrowings | $ 1,383 |
INTEREST AND ACCRETION EXPENS_4
INTEREST AND ACCRETION EXPENSE - Accretion Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
LONG TERM DEBT | ||
Accretion of site closure provision | $ 508 | $ 223 |
Total accretion expense | 1,522 | 1,605 |
Project loan (note XXX) | ||
LONG TERM DEBT | ||
Accretion expense | 261 | |
Newmont loan | ||
LONG TERM DEBT | ||
Accretion expense | 366 | $ 1,382 |
Credit Facility | ||
LONG TERM DEBT | ||
Accretion expense | $ 387 |
INVENTORY (Details)
INVENTORY (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Current inventory | ||
Stockpiled ore | $ 1,869,000 | $ 2,458,000 |
In-process inventory | 15,961,000 | 6,513,000 |
Finished goods | 1,406,000 | |
Materials and supplies | 3,210,000 | 686,000 |
Inventory - current | 22,446,000 | 9,657,000 |
Long term | ||
Stockpiled ore | 4,096,000 | 1,299,000 |
Inventory depreciation | 6,341,000 | 0 |
Inventory write-down | $ 0 | $ 0 |
VALUE ADDED TAXES RECOVERABLE (
VALUE ADDED TAXES RECOVERABLE (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
VALUE ADDED TAXES RECOVERABLE | ||
Long term portion | $ 4,400 | $ 3,400 |
Long term portion | $ 5,229 | $ 7,444 |
ACQUISITION OF GOLD STANDARD _3
ACQUISITION OF GOLD STANDARD VENTURES CORP. (Details) - Aug. 12, 2022 - Gold Standard Ventures Corp. | $ / shares | USD ($) shares |
Ifrs Asset Acquisitions [Line Items] | ||
Exchange Ratio | 0.001193 | |
Cash consideration per each Gold Standard share | $ / shares | $ 0.0001 | |
Total cash consideration | $ | $ 28,000 | |
Number of shares issued as consideration | 43,688,556 | |
Number of replacement options issued | 1,758,334 |
ACQUISITION OF GOLD STANDARD _4
ACQUISITION OF GOLD STANDARD VENTURES CORP. - Purchase Consideration Calculation (Details) - Gold Standard Ventures Corp. | Aug. 12, 2022 USD ($) shares |
Ifrs Asset Acquisitions [Line Items] | |
Cash consideration | $ 28,000 |
Estimated fair value of 43,688,556 common shares issued by the Company | 149,363,000 |
Estimated fair value of 1,758,334 Replacement Options issued by the Company | 1,647,000 |
Transaction costs | 3,030,000 |
Total purchase price | $ 154,068,000 |
Number of shares issued as consideration | shares | 43,688,556 |
Number of replacement options issued | shares | 1,758,334 |
ACQUISITION OF GOLD STANDARD _5
ACQUISITION OF GOLD STANDARD VENTURES CORP. - Assets acquired and liabilities assumed (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Aug. 12, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Ifrs Asset Acquisitions [Line Items] | ||||
Cash and cash equivalents | $ 96,278 | $ 20,516 | $ 72,180 | |
Lease liabilities | (3,173) | $ (1,401) | $ (273) | |
Deferred revenue | $ (7,500) | |||
Gold Standard Ventures Corp. | ||||
Ifrs Asset Acquisitions [Line Items] | ||||
Cash and cash equivalents | $ 1,821 | |||
Restricted cash (pursuant to environmental bonding) | 2,704 | |||
Receivables and other assets | 2,170 | |||
Right of use assets | 117 | |||
Trade and other payables | (3,524) | |||
Lease liabilities | (117) | |||
Asset retirement obligations | (1,603) | |||
Deferred revenue | (7,500) | |||
Subtotal | (5,932) | |||
Mineral properties - Nevada - South Railroad Project | 146,000 | |||
Mineral properties - Nevada - Lewis Project | (14,000) | |||
Total assets acquired and liabilities assumed, net | $ 154,068 |
ACQUISITION OF GOLD STANDARD _6
ACQUISITION OF GOLD STANDARD VENTURES CORP. - Additional Information (Details) | 12 Months Ended | |||||
Aug. 12, 2022 $ / shares | Aug. 12, 2022 USD ($) | Dec. 31, 2022 Y | Dec. 31, 2021 Y | Dec. 31, 2020 USD ($) | Aug. 12, 2022 USD ($) $ / $ | |
Ifrs Asset Acquisitions [Line Items] | ||||||
Stock options life | Y | 5 | 5 | ||||
Dividends | $ | $ 0 | |||||
Fair value recognized on acquisition | $ | $ 7,500,000 | |||||
Discount rate | 6.5 | |||||
Gold Standard Ventures Corp. | ||||||
Ifrs Asset Acquisitions [Line Items] | ||||||
Share price (in dollars per share) | $ 4.36 | |||||
Exchange rate (CAD/USD) | $ / $ | 1.2741 | |||||
Replacement Options, fair value assumptions, Share price (in dollars per share) | 4.36 | |||||
Replacement Options, fair value assumptions, Expected volatility (in percent) | 45% | |||||
Stock options life | 1.9 | |||||
Replacement Options, fair value assumptions, Risk free interest rate (in percent) | 3.30% | |||||
Weighted average fair value for Replacement Options (in dollars per share) | 0.58 | |||||
Gold Standard Ventures Corp. | Minimum | ||||||
Ifrs Asset Acquisitions [Line Items] | ||||||
Replacement Options, fair value assumptions, Exercise price (in dollars per share) | 4.78 | |||||
Gold Standard Ventures Corp. | Maximum | ||||||
Ifrs Asset Acquisitions [Line Items] | ||||||
Replacement Options, fair value assumptions, Exercise price (in dollars per share) | $ 18.87 | |||||
Silver Stream | ||||||
Ifrs Asset Acquisitions [Line Items] | ||||||
Upfront cash payment | $ | $ 2,000,000,000 | |||||
Percentage of silver production to be delivered to investor | 100% | |||||
Ongoing cash purchase price as percentage of prevailing silver price at the time of delivery | 15% |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) km | |
PROPERTY, PLANT AND EQUIPMENT | |
Number of km from NE of the city of Zacatecas | 190 |
Number of km from SW of the town of Concepcion del Oro | 48 |
Number of km from SE of Newmont Penasquito Mine | 54 |
Percentage of royalty payable | 2% |
Total cash consideration agreed to pay to Fresnillo | $ | $ 62.8 |
Newmount | |
PROPERTY, PLANT AND EQUIPMENT | |
Percentage of royalty payable | 2% |
Minimum | |
PROPERTY, PLANT AND EQUIPMENT | |
Option to acquire interest in applicable sulphide project, Percentage | 60% |
Maximum | |
PROPERTY, PLANT AND EQUIPMENT | |
Option to acquire interest in applicable sulphide project, Percentage | 70% |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Changes in property, plant and equipment | ||
Opening net book value | $ 7,635 | |
Depreciation | 9,147 | |
Closing net book value | 224,416 | $ 7,635 |
Cost | ||
Changes in property, plant and equipment | ||
Opening net book value | 8,684 | 1,165 |
Additions | 14,642 | 5,118 |
Transfers from mineral properties under construction | 223,163 | 2,484 |
Change in site closure provision | 665 | |
Leased assets derecognized at end of lease | (215) | |
Due to changes in exchange rates | (53) | (83) |
Closing net book value | 246,886 | 8,684 |
Accumulated depreciation | ||
Changes in property, plant and equipment | ||
Opening net book value | (1,049) | (455) |
Leased assets derecognized at end of lease | (215) | |
Depreciation | 21,647 | 600 |
Due to changes in exchange rates | (11) | 6 |
Closing net book value | (22,470) | (1,049) |
Producing mineral property | ||
Changes in property, plant and equipment | ||
Closing net book value | 106,112 | |
Producing mineral property | Cost | ||
Changes in property, plant and equipment | ||
Additions | 6,616 | |
Transfers from mineral properties under construction | 127,002 | |
Reclassification of capitalized interest | (19,020) | |
Change in site closure provision | 1,155 | |
Closing net book value | 115,753 | |
Producing mineral property | Accumulated depreciation | ||
Changes in property, plant and equipment | ||
Depreciation | 9,641 | |
Closing net book value | (9,641) | |
Buildings | ||
Changes in property, plant and equipment | ||
Opening net book value | 60 | |
Closing net book value | 65,722 | 60 |
Buildings | Cost | ||
Changes in property, plant and equipment | ||
Opening net book value | 66 | |
Additions | 1,788 | 67 |
Transfers from mineral properties under construction | 58,869 | |
Reclassification of capitalized interest | 11,585 | |
Change in site closure provision | (300) | |
Due to changes in exchange rates | (1) | |
Closing net book value | 72,008 | 66 |
Buildings | Accumulated depreciation | ||
Changes in property, plant and equipment | ||
Opening net book value | (6) | |
Depreciation | 6,280 | 6 |
Closing net book value | (6,286) | (6) |
Machinery and equipment | ||
Changes in property, plant and equipment | ||
Opening net book value | 4,888 | |
Closing net book value | 47,454 | 4,888 |
Machinery and equipment | Cost | ||
Changes in property, plant and equipment | ||
Opening net book value | 5,238 | 392 |
Additions | 3,272 | 2,437 |
Transfers from mineral properties under construction | 36,684 | 2,484 |
Reclassification of capitalized interest | 7,341 | |
Change in site closure provision | (190) | |
Due to changes in exchange rates | (75) | |
Closing net book value | 52,345 | 5,238 |
Machinery and equipment | Accumulated depreciation | ||
Changes in property, plant and equipment | ||
Opening net book value | (350) | (235) |
Depreciation | 4,541 | 115 |
Closing net book value | (4,891) | (350) |
Other assets | ||
Changes in property, plant and equipment | ||
Opening net book value | 973 | |
Closing net book value | 1,915 | 973 |
Other assets | Cost | ||
Changes in property, plant and equipment | ||
Opening net book value | 1,261 | 435 |
Additions | 666 | 845 |
Transfers from mineral properties under construction | 608 | |
Reclassification of capitalized interest | 94 | |
Due to changes in exchange rates | (9) | (19) |
Closing net book value | 2,620 | 1,261 |
Other assets | Accumulated depreciation | ||
Changes in property, plant and equipment | ||
Opening net book value | (288) | (162) |
Depreciation | 421 | 127 |
Due to changes in exchange rates | (4) | 1 |
Closing net book value | (705) | (288) |
Right of use assets | ||
Changes in property, plant and equipment | ||
Opening net book value | 1,714 | |
Closing net book value | 3,213 | 1,714 |
Right of use assets | Cost | ||
Changes in property, plant and equipment | ||
Opening net book value | 2,119 | 338 |
Additions | 2,300 | 1,769 |
Leased assets derecognized at end of lease | (215) | |
Due to changes in exchange rates | (44) | 12 |
Closing net book value | 4,160 | 2,119 |
Right of use assets | Accumulated depreciation | ||
Changes in property, plant and equipment | ||
Opening net book value | (405) | (58) |
Leased assets derecognized at end of lease | (215) | |
Depreciation | 764 | 352 |
Due to changes in exchange rates | (7) | 5 |
Closing net book value | $ (947) | $ (405) |
MINERAL PROPERTIES AND RELATE_3
MINERAL PROPERTIES AND RELATED CONSTRUCTION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
PROPERTY, PLANT AND EQUIPMENT | |||
Opening net book value | $ 213,749 | ||
Borrowing costs capitaliised | $ 0 | ||
Closing net book value | $ 213,749 | ||
Mineral properties under development and construction | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Opening net book value | 213,749 | 71,272 | |
Additions | 5,636 | 130,739 | |
Borrowing costs capitaliised | 4,085 | 13,967 | |
Change in site closure provision | (238) | 4,653 | |
Transfers to equipment | (223,163) | (2,484) | |
Due to changes in exchange rates | (4,398) | ||
Transfer to other non-current assets | (69) | ||
Closing net book value | 213,749 | ||
Cost | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Due to changes in exchange rates | 53 | 83 | |
Cost | Mineral Properties | Mineral properties under development and construction | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Opening net book value | 102,072 | 39,272 | |
Additions | 62,800 | ||
Transfer within categories | (4,060) | ||
Transfers to equipment | (98,012) | ||
Closing net book value | 102,072 | ||
Cost | Deposits to vendors on construction assets [Member] | Mineral properties under development and construction | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Opening net book value | 1,658 | 28,079 | |
Additions | 11,411 | ||
Transfer within categories | (1,589) | (37,832) | |
Transfer to other non-current assets | (69) | ||
Closing net book value | 1,658 | ||
Cost | Construction in progress | Mineral properties under development and construction | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Opening net book value | 96,721 | 4,845 | |
Additions | 5,636 | 56,528 | |
Transfer within categories | (509) | 37,832 | |
Transfers to equipment | (101,848) | (2,484) | |
Closing net book value | 96,721 | ||
Cost | Other assets | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Due to changes in exchange rates | 9 | 19 | |
Cost | Other assets | Mineral properties under development and construction | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Opening net book value | 19,456 | 836 | |
Borrowing costs capitaliised | 4,085 | 13,967 | |
Change in site closure provision | (238) | 4,653 | |
Transfers to equipment | (23,303) | ||
Closing net book value | 19,456 | ||
Accumulated depreciation | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Due to changes in exchange rates | 11 | (6) | |
Accumulated depreciation | Mineral properties under development and construction | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Opening net book value | (6,158) | (1,760) | |
Transfer within categories | 6,158 | ||
Due to changes in exchange rates | (4,398) | ||
Closing net book value | (6,158) | ||
Accumulated depreciation | Other assets | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Due to changes in exchange rates | $ 4 | $ (1) |
EXPLORATION AND EVALUATION PR_3
EXPLORATION AND EVALUATION PROPERTIES (Details) | 2 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2022 USD ($) ha Option | Dec. 31, 2017 | |
Mineral Properties | |||
Percentage of royalty payable | 2% | ||
South Railroad Project | |||
Mineral Properties | |||
Work commitments | $ 1,000,000 | ||
Current gross lease payment | $ 1,311,100 | ||
South Railroad Project | Minimum | |||
Mineral Properties | |||
Percentage of royalty payable | 1% | ||
South Railroad Project | Maximum | |||
Mineral Properties | |||
Percentage of royalty payable | 5% | ||
Percentage of royalty payable for ceratin claims | 1.50% | ||
Lewis Gold Project | |||
Mineral Properties | |||
Percentage of interest acquired | 100% | ||
Monitor Gold Corporation | |||
Mineral Properties | |||
Number of separate option agreements | Option | 100 | ||
Area | ha | 2,800 | ||
Cerro Quema | |||
Mineral Properties | |||
Term of agreement | 20 years | ||
Term of extension | 10 years |
EXPLORATION AND EVALUATION PR_4
EXPLORATION AND EVALUATION PROPERTIES - Rollforward (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Changes in property, plant and equipment | |
At beginning of period | $ 82,743 |
At end of period | 242,743 |
Mineral Properties | |
Changes in property, plant and equipment | |
At beginning of period | 82,743 |
Acquisition of Gold Standard Ventures Corp. | 160,000 |
At end of period | 242,743 |
Cerro Quema | Mineral Properties | |
Changes in property, plant and equipment | |
At beginning of period | 82,429 |
At end of period | 82,429 |
Nevada projects | Mineral Properties | |
Changes in property, plant and equipment | |
At beginning of period | 314 |
Acquisition of Gold Standard Ventures Corp. | 160,000 |
At end of period | $ 160,314 |
EXPLORATION AND EVALUATION PR_5
EXPLORATION AND EVALUATION PROPERTIES - Minimum payments and work commitments (Details) - South Railroad Project $ in Thousands | Dec. 31, 2022 USD ($) |
Disclosure of detailed information about property, plant and equipment [line items] | |
Total work commitments | $ 3,200 |
Lease payments | 3,128 |
Total | 6,328 |
2023 | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Total work commitments | 1,300 |
Lease payments | 1,070 |
Total | 2,370 |
2024 | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Total work commitments | 1,300 |
Lease payments | 682 |
Total | 1,982 |
2025 | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Total work commitments | 300 |
Lease payments | 682 |
Total | 982 |
2026 | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Total work commitments | 300 |
Lease payments | 694 |
Total | $ 994 |
TRADE AND OTHER PAYABLES (Detai
TRADE AND OTHER PAYABLES (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Trade and OtherCurrent Payables. | ||
Trade payables | $ 6,707 | $ 5,966 |
Royalties payable | 2,119 | 113 |
Payroll related liabilities | 848 | 339 |
Current portion of lease obligations (note XXX) | 846 | 372 |
Other | 1,188 | 26 |
Total trade and other current payables | $ 11,708 | $ 6,816 |
ACCRUED LIABILITIES (Details)
ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current | ||
Goods or services received awaiting vendor invoices | $ 3,139 | $ 2,045 |
Land and water fees | 1,795 | |
Payroll related | 2,532 | 1,244 |
Accrued interest on Credit Facility | 1,660 | |
Restricted share units expected to be cash settled | 352 | |
Other | 284 | 575 |
Accrued liabilities - current | 7,967 | 5,659 |
Long term | ||
Payroll related | $ 172 | $ 161 |
LONG TERM DEBT (Details)
LONG TERM DEBT (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
LONG TERM DEBT | |||
Current | $ 45,000 | $ 25,293 | |
Long term | 100,795 | 136,060 | |
Total | 145,795 | 161,353 | |
Camino Rojo project loan | |||
LONG TERM DEBT | |||
Long term | 113,260 | $ 60,696 | |
Total | 113,260 | ||
Newmont loan | |||
LONG TERM DEBT | |||
Current | 10,293 | ||
Total | 10,293 | ||
Credit Facility | |||
LONG TERM DEBT | |||
Current | 22,200 | ||
Long term | 100,795 | ||
Total | 122,995 | ||
Fresnillo obligation | |||
LONG TERM DEBT | |||
Current | 22,800 | 15,000 | |
Long term | 22,800 | ||
Total | $ 22,800 | $ 37,800 |
CAMINO ROJO PROJECT LOAN (Detai
CAMINO ROJO PROJECT LOAN (Details) - Camino Rojo project loan $ in Millions | Dec. 31, 2019 USD ($) tranche |
Disclosure of detailed information about borrowings [line items] | |
Notional amount | $ | $ 125 |
Number of tranches | tranche | 3 |
Interest rate | 8.80% |
CAMINO ROJO PROJECT LOAN - Long
CAMINO ROJO PROJECT LOAN - Long term debt (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of detailed information about borrowings [line items] | |||
Beginning | $ 136,060 | ||
Accretion during the period, capitalized | $ 0 | ||
Loss on early settlement of project loan | 13,219 | ||
Ending | 100,795 | $ 136,060 | |
Camino Rojo project loan | |||
Disclosure of detailed information about borrowings [line items] | |||
Beginning | 113,260 | 60,696 | |
Advances during the year | 49,835 | ||
Accretion during the period, capitalized | 3,612 | 12,430 | |
Accretion during the period, expensed | 1,130 | ||
Cash interest paid | 3,633 | 9,613 | |
Foreign exchange | 88 | (88) | |
Principal repayment including early repayment premium | 127,500 | ||
Loss on early settlement of project loan | 13,219 | ||
Ending | 113,260 | ||
Camino Rojo project loan | Loan advances | |||
Disclosure of detailed information about borrowings [line items] | |||
Beginning | 125,000 | 75,000 | |
Advances during the year | 50,000 | ||
Principal repayment including early repayment premium | 127,500 | ||
Loss on early settlement of project loan | 2,500 | ||
Ending | 125,000 | ||
Camino Rojo project loan | Interest and Accretion | |||
Disclosure of detailed information about borrowings [line items] | |||
Accretion during the period, capitalized | 2,764 | 9,613 | |
Accretion during the period, expensed | 869 | ||
Cash interest paid | 3,633 | 9,613 | |
Camino Rojo project loan | Transaction cost | |||
Disclosure of detailed information about borrowings [line items] | |||
Transaction costs, bgn | (11,740) | (14,304) | |
Advances during the year | 165 | ||
Accretion during the period, capitalized | 848 | 2,817 | |
Accretion during the period, expensed | 261 | ||
Foreign exchange | 88 | (88) | |
Loss on early settlement of project loan | $ 10,719 | ||
Transaction costs, end | $ (11,740) |
CAMINO ROJO PROJECT LOAN - Loss
CAMINO ROJO PROJECT LOAN - Loss on early settlement of project loan (Details) shares in Millions | 1 Months Ended | 12 Months Ended | ||
Dec. 28, 2019 $ / shares | Dec. 31, 2019 | Dec. 31, 2022 USD ($) | Dec. 31, 2019 USD ($) shares | |
Disclosure of detailed information about borrowings [line items] | ||||
Maturity term | 5 years | |||
Unamortized transaction costs written off (non-cash) | $ 10,719,000 | |||
Early repayment premium paid (cash) | 2,500,000 | |||
Loss on early settlement of project loan | 13,219,000 | |||
Camino Rojo project loan | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Number of common purchase warrants issued | shares | 32.5 | |||
Warrants exercise price | $ / shares | $ 3 | |||
Transaction costs | $ 12,039,000 | |||
Loss on early settlement of project loan | $ 13,219,000 |
NEWMONT LOAN - Long term debt (
NEWMONT LOAN - Long term debt (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
INTEREST AND ACCRETION EXPENSE | ||
Principal repayment | $ 10,836 | |
Newmont loan | ||
INTEREST AND ACCRETION EXPENSE | ||
Beginning of the year | 10,293 | $ 9,440 |
Accretion during the year | 366 | 1,382 |
Modification gains arising from changes in estimates | (220) | |
Foreign exchange | 177 | (309) |
Principal repayment | $ 10,836 | |
End of the year | $ 10,293 |
CREDIT FACILITY (Details)
CREDIT FACILITY (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 USD ($) Part | Apr. 28, 2022 USD ($) | |
Credit Facility | ||
Disclosure of detailed information about borrowings [line items] | ||
Number of parts of credit facility | Part | 2 | |
Term of credit facility | 5 years | |
Term facility | ||
Disclosure of detailed information about borrowings [line items] | ||
Notional amount | $ 100 | $ 100 |
Number of equal quarterly instalments | Part | 18 | |
Revolving facility | ||
Disclosure of detailed information about borrowings [line items] | ||
Notional amount | $ 50 | $ 50 |
Maximum borrowing capacity | $ 75 | |
Term of credit facility | 3 years | |
Extension term of debt | 1 year |
CREDIT FACILITY (Details)_2
CREDIT FACILITY (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Credit facility | Secured Overnight Financing Rate | Minimum | |
Disclosure of detailed information about borrowings [line items] | |
Applicable margin (as a percent) | 2.75% |
Credit facility | Secured Overnight Financing Rate | Maximum | |
Disclosure of detailed information about borrowings [line items] | |
Applicable margin (as a percent) | 3.75% |
Revolving facility | Minimum | |
Disclosure of detailed information about borrowings [line items] | |
Standby fee (as a percent) | 0.6875% |
Revolving facility | Maximum | |
Disclosure of detailed information about borrowings [line items] | |
Standby fee (as a percent) | 0.9375% |
CREDIT FACILITY - Credit agreem
CREDIT FACILITY - Credit agreement (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Changes in credit facility | ||
At the beginning | $ 161,353 | |
Principal repayments during the year | (10,836) | |
At the end | 145,795 | $ 161,353 |
Long term | 100,795 | 136,060 |
Total | 145,795 | $ 161,353 |
Credit facility | ||
Changes in credit facility | ||
Advances during the year | 130,000 | |
Interest expense during the year | 4,903 | |
Transaction costs paid, which are accreted over the term of each facility | (1,866) | |
Accretion during the period, expensed | 387 | |
Interest paid during the year | (3,219) | |
Principal repayments during the year | (5,550) | |
Reallocated to accrued interest payable | (1,660) | |
At the end | 122,995 | |
Current | 22,200 | |
Long term | 100,795 | |
Total | 122,995 | |
Term facility | ||
Changes in credit facility | ||
Advances during the year | 100,000 | |
Interest expense during the year | 3,772 | |
Transaction costs paid, which are accreted over the term of each facility | (1,435) | |
Accretion during the period, expensed | 304 | |
Interest paid during the year | (2,481) | |
Principal repayments during the year | (5,550) | |
Reallocated to accrued interest payable | (1,272) | |
At the end | 93,338 | |
Current | 22,200 | |
Long term | 71,138 | |
Total | 93,338 | |
Revolving facility | ||
Changes in credit facility | ||
Advances during the year | 30,000 | |
Interest expense during the year | 1,131 | |
Transaction costs paid, which are accreted over the term of each facility | (431) | |
Accretion during the period, expensed | 83 | |
Interest paid during the year | (738) | |
Reallocated to accrued interest payable | (388) | |
At the end | 29,657 | |
Long term | 29,657 | |
Total | $ 29,657 |
CREDIT FACILITY - Closing of Cr
CREDIT FACILITY - Closing of Credit Facility (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Disclosure of detailed information about borrowings [line items] | |
Amount incurred in advisory, legal and upfront fees that were directly attributable to the Credit Facility | $ 2,153 |
Credit facility | |
Disclosure of detailed information about borrowings [line items] | |
Amount drawn down upon closing | 130,000 |
Amount incurred in advisory, legal and upfront fees that were directly attributable to the Credit Facility | 2,200 |
Term facility | |
Disclosure of detailed information about borrowings [line items] | |
Amount drawn down upon closing | 100,000 |
Amount incurred in advisory, legal and upfront fees that were directly attributable to the Credit Facility | 1,435 |
Revolving facility | |
Disclosure of detailed information about borrowings [line items] | |
Amount drawn down upon closing | $ 30,000 |
CREDIT FACILITY - Initial trans
CREDIT FACILITY - Initial transaction costs (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Disclosure of detailed information about borrowings [line items] | |
Total transaction costs incurred | $ 2,153 |
Credit facility | |
Disclosure of detailed information about borrowings [line items] | |
Total transaction costs incurred | $ 2,200 |
Term of credit facility | 5 years |
Term facility | |
Disclosure of detailed information about borrowings [line items] | |
Total transaction costs incurred | $ 1,435 |
Revolving facility | |
Disclosure of detailed information about borrowings [line items] | |
Amount allocated to drawn amount | 431 |
Amount allocated to undrawn amount | $ 287 |
Term of credit facility | 3 years |
FRESNILLO OBLIGATION (Details)
FRESNILLO OBLIGATION (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Mar. 31, 2022 | Feb. 22, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
INTEREST AND ACCRETION EXPENSE | ||||
Borrowing costs capitaliised | $ 0 | |||
Fresnillo obligation | ||||
INTEREST AND ACCRETION EXPENSE | ||||
Consideration for right to mine | $ 62,800 | |||
Percentage of interest payable | 5% | |||
Borrowing costs capitaliised | 473 | $ 1,654 | ||
Fresnillo obligation | Upon receipt of COFECE approval | ||||
INTEREST AND ACCRETION EXPENSE | ||||
Consideration for right to mine | 25,000 | |||
Fresnillo obligation | Earlier of December 1, 2022, and 12 months following the commencement of commercial production | ||||
INTEREST AND ACCRETION EXPENSE | ||||
Consideration for right to mine | 15,000 | |||
Fresnillo obligation | At the Camino Rojo Project | ||||
INTEREST AND ACCRETION EXPENSE | ||||
Consideration for right to mine | $ 22,800 |
FRESNILLO OBLIGATION - Long ter
FRESNILLO OBLIGATION - Long term debt (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of detailed information about borrowings [line items] | |||
Accretion during the period, capitalized | $ 0 | ||
Fresnillo obligation | |||
Disclosure of detailed information about borrowings [line items] | |||
Beginning of the year | $ 37,800 | ||
Initial recognition | $ 37,800 | ||
Accretion during the period, capitalized | 473 | 1,654 | |
Accretion expensed | 1,383 | ||
Principal repayments during the year | (15,000) | ||
Cash interest paid | 1,856 | 1,654 | |
End of the year | 22,800 | 37,800 | |
Current | 22,800 | 15,000 | |
Non-current | 22,800 | ||
Total | $ 22,800 | $ 37,800 |
LEASE OBLIGATIONS (Details)
LEASE OBLIGATIONS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Mineral Properties | ||
Lease obligations | $ 2,327 | $ 1,029 |
Variable lease payments | $ 15,586 | $ 4,579 |
Mining equipment | ||
Mineral Properties | ||
Lease term | 5 years | |
Vehicles | Minimum | ||
Mineral Properties | ||
Lease term | 3 years | |
Vehicles | Maximum | ||
Mineral Properties | ||
Lease term | 5 years | |
Buildings | Minimum | ||
Mineral Properties | ||
Lease term | 3 years | |
Buildings | Maximum | ||
Mineral Properties | ||
Lease term | 5 years |
LEASE OBLIGATIONS - Lease liabi
LEASE OBLIGATIONS - Lease liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
LEASE OBLIGATIONS | ||
Beginning of year | $ 1,401 | $ 273 |
Additions | 2,300 | 1,769 |
Interest expense | 87 | 32 |
Lease payments | (661) | (681) |
Due to changes in exchange rates | 46 | 8 |
End of period | 3,173 | 1,401 |
Current | 846 | 372 |
Non-current lease liabilities | 2,327 | 1,029 |
Lease liabilities | $ 3,173 | $ 1,401 |
LEASE OBLIGATIONS - Lease expen
LEASE OBLIGATIONS - Lease expenses recognized (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
LEASE OBLIGATIONS | ||
Interest on lease liabilities | $ 87 | $ 32 |
Variable lease payments not included in the measurement of lease liabilities | 15,586 | 4,579 |
Expenses relating to short-term leases | 168 | 131 |
Expenses relating to leases of low-value assets, excluding short-term leases | 108 | 155 |
Lease expenses | $ 15,949 | $ 4,897 |
SITE CLOSURE PROVISIONS - Chang
SITE CLOSURE PROVISIONS - Changes in site closure provisions (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Changes in site closure provisions | ||
Beginning balance | $ 5,460 | $ 518 |
Acquisition of Gold Standard | 1,603 | |
Changes in cost estimates | 351 | |
Change in estimated cash flows resulting from current activities | 427 | |
Remediation activities conducted during the period | (88) | |
Change in estimated cash flows resulting from current activities | 4,738 | |
Accretion during the period | 508 | 223 |
Foreign exchange | (19) | |
Ending balance | 8,261 | 5,460 |
Non-current | 8,261 | |
Total other provisions | 8,261 | 5,460 |
Camino Rojo Project | ||
Changes in site closure provisions | ||
Beginning balance | 5,117 | 175 |
Changes in cost estimates | 351 | |
Change in estimated cash flows resulting from current activities | 427 | |
Remediation activities conducted during the period | (88) | |
Change in estimated cash flows resulting from current activities | 4,738 | |
Accretion during the period | 494 | 223 |
Foreign exchange | (19) | |
Ending balance | 6,301 | 5,117 |
Non-current | 6,301 | |
Total other provisions | 6,301 | 5,117 |
Cerro Quema Project | ||
Changes in site closure provisions | ||
Beginning balance | 343 | 343 |
Ending balance | 343 | 343 |
Non-current | 343 | |
Total other provisions | 343 | $ 343 |
Nevada projects | ||
Changes in site closure provisions | ||
Acquisition of Gold Standard | 1,603 | |
Accretion during the period | 14 | |
Ending balance | 1,617 | |
Non-current | 1,617 | |
Total other provisions | $ 1,617 |
SITE CLOSURE PROVISIONS - (Deta
SITE CLOSURE PROVISIONS - (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Camino Rojo Project | |
Disclosure of other provisions [line items] | |
Undiscounted risk-adjusted cash flows | $ 8,644 |
Inflation rate | 7% |
Discount rate | 9.60% |
Cerro Quema Project | |
Disclosure of other provisions [line items] | |
Undiscounted risk-adjusted cash flows | $ 343 |
Nevada projects | |
Disclosure of other provisions [line items] | |
Undiscounted risk-adjusted cash flows | $ 1,724 |
Inflation rate | 2.70% |
Discount rate | 3.20% |
SHARE CAPITAL - Outstanding (De
SHARE CAPITAL - Outstanding (Details) | 12 Months Ended | ||||||
Aug. 12, 2022 USD ($) shares | Aug. 12, 2022 CAD ($) shares | Dec. 31, 2022 USD ($) $ / shares | Dec. 31, 2022 CAD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares | Dec. 31, 2021 $ / shares | Dec. 31, 2020 $ / shares | |
Disclosure of classes of share capital [line items] | |||||||
Weighted average | $ / shares | $ 3 | $ 2.72 | $ 2.64 | ||||
Weighted average exercise price - Expired | $ / shares | 2.35 | ||||||
Exercised (per share) I $ / shares | $ / shares | $ 1.95 | $ 2.25 | |||||
Proceeds from exercise of warrants | $ 830,000 | $ 1,111,500 | |||||
Share issue costs | $ 261,000 | $ 1,000,000 | |||||
Common shares issued | |||||||
Disclosure of classes of share capital [line items] | |||||||
Number of shares issued | shares | 370,500 | ||||||
Gold Standard Ventures Corp. | |||||||
Disclosure of classes of share capital [line items] | |||||||
Number of shares issued | shares | 43,688,556 | 43,688,556 | |||||
Share issue costs | $ 261,000 | $ 338,000 | |||||
Warrants | |||||||
Disclosure of classes of share capital [line items] | |||||||
Outstanding, beginning balance | 40,242,500 | 48,645,494 | |||||
Exercised | (10,697,500) | (8,059,744) | |||||
Expired | (343,250) | ||||||
Outstanding, ending balance | 29,545,000 | 40,242,500 | |||||
Price range one | Warrants | |||||||
Disclosure of classes of share capital [line items] | |||||||
Outstanding, beginning balance | 4,742,500 | 7,782,994 | |||||
Exercised | (4,742,500) | (7,439,744) | |||||
Expired | (343,250) | ||||||
Outstanding, ending balance | 4,742,500 | ||||||
Exercised (per share) I $ / shares | $ / shares | $ 1.65 | $ 2.35 | |||||
Price range two | Warrants | |||||||
Disclosure of classes of share capital [line items] | |||||||
Outstanding, beginning balance | 370,000 | ||||||
Exercised | (370,000) | ||||||
Exercised (per share) I $ / shares | $ / shares | $ 0.62 | ||||||
Price range three | Warrants | |||||||
Disclosure of classes of share capital [line items] | |||||||
Outstanding, beginning balance | 4,742,500 | 4,992,500 | |||||
Exercised | (250,000) | ||||||
Outstanding, ending balance | 4,742,500 | ||||||
Exercised (per share) I $ / shares | $ / shares | $ 1.65 | ||||||
Price range four | Warrants | |||||||
Disclosure of classes of share capital [line items] | |||||||
Outstanding, beginning balance | 3,000,000 | 3,000,000 | |||||
Exercised | (3,000,000) | ||||||
Outstanding, ending balance | 3,000,000 | ||||||
Exercised (per share) I $ / shares | $ / shares | $ 1.40 | $ 1.40 | |||||
Price range five | Warrants | |||||||
Disclosure of classes of share capital [line items] | |||||||
Outstanding, beginning balance | 32,500,000 | 32,500,000 | |||||
Exercised | (2,955,000) | ||||||
Outstanding, ending balance | 29,545,000 | 32,500,000 | |||||
Exercised (per share) I $ / shares | $ / shares | $ 3 | $ 3 |
EARNINGS (LOSS) PER SHARE - Bas
EARNINGS (LOSS) PER SHARE - Basic Earnings (loss) per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
EARNINGS (LOSS) PER SHARE | ||
Income (loss) for the period | $ 45,770 | $ (26,278) |
Weighted average number of common shares (thousands) | 272,202 | 241,379 |
Basic earnings (loss) per share | $ 0.17 | $ (0.11) |
EARNINGS (LOSS) PER SHARE - Dil
EARNINGS (LOSS) PER SHARE - Diluted Earnings (loss) per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings per share [line items] | ||
Income (loss) for the period | $ 45,770 | $ (26,278) |
Weighted average number of common shares (thousands) | ||
Weighted average number of common shares (thousands) | 272,202 | 241,379 |
Weighted average number of ordinary shares | 292,816 | 241,379 |
Diluted earnings (loss) per share | $ 0.16 | $ (0.11) |
Warrants | ||
Weighted average number of common shares (thousands) | ||
Weighted average number of ordinary shares | 14,526 | |
Stock options. | ||
Weighted average number of common shares (thousands) | ||
Weighted average number of ordinary shares | 4,544 | |
RSUs | ||
Weighted average number of common shares (thousands) | ||
Weighted average number of ordinary shares | 392 | |
Deferred Share Unit Plan | ||
Weighted average number of common shares (thousands) | ||
Weighted average number of ordinary shares | 652 | |
Bonus shares | ||
Weighted average number of common shares (thousands) | ||
Weighted average number of ordinary shares | 500 |
SHARE-BASED PAYMENTS - Share-ba
SHARE-BASED PAYMENTS - Share-based compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
SHARE-BASED PAYMENTS | ||
Share based payments expense | $ 2,447 | $ 2,329 |
Stock options | ||
SHARE-BASED PAYMENTS | ||
Share based payments expense | 1,396 | 1,350 |
RSUs | ||
SHARE-BASED PAYMENTS | ||
Share based payments expense | 743 | 738 |
Deferred Share Unit Plan | ||
SHARE-BASED PAYMENTS | ||
Share based payments expense | $ 308 | $ 241 |
SHARE-BASED PAYMENTS - Share op
SHARE-BASED PAYMENTS - Share option plan changes (Details) | 12 Months Ended | |
Dec. 31, 2022 Options Y $ / shares | Dec. 31, 2021 Options Y $ / shares | |
SHARE-BASED PAYMENTS | ||
Stock options life | Y | 5 | 5 |
On grant date | ||
SHARE-BASED PAYMENTS | ||
Vesting of stock options ( as a percentage) | 33.33% | |
After grant date year one | ||
SHARE-BASED PAYMENTS | ||
Vesting of stock options ( as a percentage) | 33.33% | 33.33% |
After grant date year two | ||
SHARE-BASED PAYMENTS | ||
Vesting of stock options ( as a percentage) | 33.33% | 33.33% |
After grant date year three | ||
SHARE-BASED PAYMENTS | ||
Vesting of stock options ( as a percentage) | 33.33% | |
Stock options | ||
SHARE-BASED PAYMENTS | ||
Balance | Options | 9,900,874 | 9,959,927 |
Replacement Options issued | Options | 1,758,334 | |
Granted | Options | 1,278,264 | 678,347 |
Exercised | Options | (3,674,769) | (687,400) |
Expired, forfeited or cancelled | Options | 83,814 | 50,000 |
Balance | Options | 9,178,889 | 9,900,874 |
Vested (in shares) | Options | 7,701,986 | 8,704,157 |
Weighted average exercise price of share options outstanding in share-based payment arrangement at beginning of period | $ / shares | $ 1.86 | $ 1.60 |
Replacement Options issued | $ / shares | 8.43 | |
Granted | $ / shares | 5.56 | 4.74 |
Exercised | $ / shares | 1.34 | 0.87 |
Expired, forfeited or cancelled | $ / shares | 16.81 | 1.39 |
Weighted average exercise price of share options outstanding in share-based payment arrangement at end of period | $ / shares | 3.71 | 1.86 |
Vested, end of year | $ / shares | $ 3.38 | $ 1.63 |
Stock options life | Y | 3 |
SHARE-BASED PAYMENTS - Black-sc
SHARE-BASED PAYMENTS - Black-scholes (Details) | 12 Months Ended | ||||||
Aug. 12, 2022 USD ($) | Dec. 31, 2022 USD ($) $ / shares | Dec. 31, 2022 USD ($) Y | Dec. 31, 2021 USD ($) $ / shares | Dec. 31, 2021 USD ($) Y | Dec. 31, 2022 CAD ($) | Dec. 31, 2021 CAD ($) | |
Disclosure of terms and conditions of share-based payment arrangement | |||||||
Stock options life | Y | 5 | 5 | |||||
Dividends | $ | $ 0 | ||||||
Stock options | |||||||
Disclosure of terms and conditions of share-based payment arrangement | |||||||
Grant date fair value | $ 3,145,000 | $ 3,145,000 | $ 1,032,000 | $ 1,032,000 | $ 4,094,000 | $ 1,294,000 | |
Share price at grant date | $ 4.74 | ||||||
Expected volatility, share options granted | 46% | 45% | |||||
Stock options life | Y | 3 | ||||||
Risk free interest rate of share options granted | 2.90% | 1% | |||||
Dividends | $ | $ 0 | $ 0 | |||||
Stock options | Minimum | |||||||
Disclosure of terms and conditions of share-based payment arrangement | |||||||
Share price at grant date | $ 3.71 | ||||||
Stock options | Maximum | |||||||
Disclosure of terms and conditions of share-based payment arrangement | |||||||
Share price at grant date | $ 5.98 |
SHARE-BASED PAYMENTS - Outstand
SHARE-BASED PAYMENTS - Outstanding (Details) - Stock options | 12 Months Ended | ||
Dec. 31, 2022 Options $ / shares | Dec. 31, 2021 Options $ / shares | Dec. 31, 2020 Options | |
Disclosure of range of exercise prices of outstanding share options | |||
Outstanding (in shares) | 9,178,889 | 9,900,874 | 9,959,927 |
Vested (in shares) | 7,701,986 | 8,704,157 | |
Price range one | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | $ / shares | $ 16.43 | $ 1.39 | |
Remaining life | 0 years | 6 months | |
Outstanding (in shares) | 5,964 | 2,200,000 | |
Vested (in shares) | 5,964 | 2,200,000 | |
Price range two | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | $ / shares | $ 4.78 | $ 1.25 | |
Remaining life | 1 month 6 days | 1 year 4 months 24 days | |
Outstanding (in shares) | 7,731 | 700,000 | |
Vested (in shares) | 700,000 | ||
Price range three | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | $ / shares | $ 7.43 | $ 1.25 | |
Remaining life | 2 months 12 days | 1 year 6 months | |
Outstanding (in shares) | 129 | 944,514 | |
Vested (in shares) | 43 | 944,514 | |
Price range four | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | $ / shares | $ 1.06 | $ 1.25 | |
Remaining life | 2 months 12 days | 1 year 8 months 12 days | |
Outstanding (in shares) | 30,000 | 100,000 | |
Vested (in shares) | 30,000 | 100,000 | |
Price range five | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | $ / shares | $ 17.69 | $ 1.30 | |
Remaining life | 2 months 12 days | 1 year 10 months 24 days | |
Outstanding (in shares) | 148,446 | 1,000,000 | |
Vested (in shares) | 148,446 | 1,000,000 | |
Price range six | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | $ / shares | $ 1.25 | $ 1.06 | |
Remaining life | 4 months 24 days | 2 years 2 months 12 days | |
Outstanding (in shares) | 400,000 | 1,835,227 | |
Vested (in shares) | 400,000 | 1,835,227 | |
Price range seven | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | $ / shares | $ 1 | ||
Remaining life | 6 months | 2 years 4 months 24 days | |
Outstanding (in shares) | 295,749 | 117,450 | |
Vested (in shares) | 246,797 | 117,450 | |
Price range seven | Minimum | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | $ / shares | $ 1.06 | ||
Price range seven | Maximum | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | $ / shares | 5.98 | ||
Price range eight | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | $ / shares | $ 1.25 | $ 1.65 | |
Remaining life | 6 months | 2 years 7 months 6 days | |
Outstanding (in shares) | 746,770 | 103,212 | |
Vested (in shares) | 746,770 | 103,212 | |
Price range nine | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | $ / shares | $ 2.21 | ||
Remaining life | 6 months | 3 years 2 months 12 days | |
Outstanding (in shares) | 224,773 | 1,022,124 | |
Vested (in shares) | 189,351 | 677,646 | |
Price range nine | Minimum | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | $ / shares | $ 1.06 | ||
Price range nine | Maximum | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | $ / shares | 5.98 | ||
Price range ten | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | $ / shares | $ 1.25 | $ 2.39 | |
Remaining life | 8 months 12 days | 3 years 3 months 18 days | |
Outstanding (in shares) | 100,000 | 600,000 | |
Vested (in shares) | 100,000 | 400,000 | |
Price range eleven | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | $ / shares | $ 1.30 | $ 2.58 | |
Remaining life | 10 months 24 days | 3 years 3 months 18 days | |
Outstanding (in shares) | 250,000 | 50,000 | |
Vested (in shares) | 250,000 | 33,334 | |
Price Range twelve | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | $ / shares | $ 14.59 | $ 3.82 | |
Remaining life | 1 year 1 month 6 days | 3 years 6 months | |
Outstanding (in shares) | 112,611 | 300,000 | |
Vested (in shares) | 112,611 | 200,000 | |
Price range thirteen | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | $ / shares | $ 1.06 | $ 6.03 | |
Remaining life | 1 year 2 months 12 days | 3 years 7 months 6 days | |
Outstanding (in shares) | 1,453,417 | 200,000 | |
Vested (in shares) | 1,453,417 | 133,334 | |
Price range fourteen | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | $ / shares | $ 5.80 | ||
Remaining life | 1 year 7 months 6 days | 3 years 8 months 12 days | |
Outstanding (in shares) | 1,280,635 | 50,000 | |
Vested (in shares) | 1,280,635 | 33,334 | |
Price range fourteen | Minimum | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | $ / shares | $ 4.78 | ||
Price range fourteen | Maximum | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | $ / shares | 8.81 | ||
Price range fifteen | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | $ / shares | $ 1.65 | $ 4.80 | |
Remaining life | 1 year 7 months 6 days | 4 years 2 months 12 days | |
Outstanding (in shares) | 103,212 | 578,347 | |
Vested (in shares) | 103,212 | 192,774 | |
Price range sixteen | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | $ / shares | $ 8.81 | $ 4.76 | |
Remaining life | 2 years 1 month 6 days | 4 years 3 months 18 days | |
Outstanding (in shares) | 17,316 | 50,000 | |
Vested (in shares) | 17,316 | 16,666 | |
Price range Seventeen | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | $ / shares | $ 2.21 | $ 4.04 | |
Remaining life | 2 years 2 months 12 days | 4 years 9 months 18 days | |
Outstanding (in shares) | 871,825 | 50,000 | |
Vested (in shares) | 871,825 | 16,666 | |
Price range eighteen | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | $ / shares | $ 2.39 | ||
Remaining life | 2 years 3 months 18 days | ||
Outstanding (in shares) | 600,000 | ||
Vested (in shares) | 600,000 | ||
Price range nineteen | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | $ / shares | $ 2.58 | ||
Remaining life | 2 years 3 months 18 days | ||
Outstanding (in shares) | 50,000 | ||
Vested (in shares) | 50,000 | ||
Price range twenty | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | $ / shares | $ 3.82 | ||
Remaining life | 2 years 6 months | ||
Outstanding (in shares) | 300,000 | ||
Vested (in shares) | 300,000 | ||
Price range twenty one | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | $ / shares | $ 6.03 | ||
Remaining life | 2 years 7 months 6 days | ||
Outstanding (in shares) | 200,000 | ||
Vested (in shares) | 200,000 | ||
Price range twenty two | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | $ / shares | $ 5.80 | ||
Remaining life | 2 years 8 months 12 days | ||
Outstanding (in shares) | 50,000 | ||
Vested (in shares) | 50,000 | ||
Price range twenty three | |||
Disclosure of range of exercise prices of outstanding share options | |||
Remaining life | 2 years 8 months 12 days | ||
Outstanding (in shares) | 4,770 | ||
Vested (in shares) | 4,770 | ||
Price range twenty three | Minimum | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | $ / shares | $ 8.55 | ||
Price range twenty four | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | $ / shares | $ 7.63 | ||
Remaining life | 2 years 10 months 24 days | ||
Outstanding (in shares) | 5,964 | ||
Vested (in shares) | 5,964 | ||
Price range twenty five | |||
Disclosure of range of exercise prices of outstanding share options | |||
Remaining life | 3 years 1 month 6 days | ||
Outstanding (in shares) | 50,388 | ||
Vested (in shares) | 42,922 | ||
Price range twenty five | Minimum | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | $ / shares | $ 7.05 | ||
Price range twenty five | Maximum | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | $ / shares | 7.43 | ||
Price range twenty six | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | $ / shares | $ 4.80 | ||
Remaining life | 3 years 2 months 12 days | ||
Outstanding (in shares) | 512,924 | ||
Vested (in shares) | 341,944 | ||
Price range twenty seven | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | $ / shares | $ 4.76 | ||
Remaining life | 3 years 3 months 18 days | ||
Outstanding (in shares) | 50,000 | ||
Vested (in shares) | 33,333 | ||
Price range twenty eight | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | $ / shares | $ 4.04 | ||
Remaining life | 3 years 9 months 18 days | ||
Outstanding (in shares) | 50,000 | ||
Vested (in shares) | 33,333 | ||
Price range twenty nine | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | $ / shares | $ 4.78 | ||
Remaining life | 4 years | ||
Outstanding (in shares) | 40,566 | ||
Price range thirty | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | $ / shares | $ 5.37 | ||
Remaining life | 4 years 2 months 12 days | ||
Outstanding (in shares) | 250,000 | ||
Vested (in shares) | 83,333 | ||
Price range thirty one | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | $ / shares | $ 5.98 | ||
Remaining life | 4 years 2 months 12 days | ||
Outstanding (in shares) | 611,515 | ||
Price range thirty two | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | $ / shares | $ 3.88 | ||
Remaining life | 4 years 6 months | ||
Outstanding (in shares) | 26,580 | ||
Price range thirty three | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | $ / shares | $ 3.71 | ||
Remaining life | 4 years 6 months | ||
Outstanding (in shares) | 50,000 | ||
Price range thirty four | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | $ / shares | $ 5.06 | ||
Remaining life | 4 years 10 months 24 days | ||
Outstanding (in shares) | 171,960 | ||
Price range thirty five | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | $ / shares | $ 5.48 | ||
Remaining life | 5 years | ||
Outstanding (in shares) | 105,644 |
SHARE BASED PAYMENTS - Subseque
SHARE BASED PAYMENTS - Subsequent (Details) $ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) Options | Dec. 31, 2022 CAD ($) Options | Dec. 31, 2021 USD ($) | |
Disclosure of non-adjusting events after reporting period [line items] | |||
Proceeds from exercise of options | $ | $ 20,024 | $ 14,754 | |
Exercise of stock options | |||
Disclosure of non-adjusting events after reporting period [line items] | |||
Stock options exercised | Options | 419,305 | 419,305 | |
Proceeds from exercise of options | $ 351,000 | $ 478,000 |
SHARE BASED PAYMENTS - RSU's (D
SHARE BASED PAYMENTS - RSU's (Details) - RSUs | 12 Months Ended | ||
Dec. 31, 2022 USD ($) EquityInstruments | Dec. 31, 2021 USD ($) EquityInstruments | Dec. 31, 2022 CAD ($) EquityInstruments | |
Disclosure of Equity Instruments other than options | |||
Outstanding, beginning balance | 707,840 | 921,356 | |
Awarded | 172,301 | 235,091 | |
Vested and settled (in shares) | (402,430) | (448,607) | |
Forfeitures during the period | (34,444) | ||
Outstanding, ending balance | 443,267 | 707,840 | |
Number of instruments settled in cash | 365,935 | 365,935 | |
Cash proceeds from settlement of instruments | $ | $ 1,732,000 | $ 0 | |
Number of instruments expected to be settled in cash | 94,063 | 94,063 | |
Fair value of instruments | $ 351,738 | $ 476,394 | |
2022 | |||
Disclosure of Equity Instruments other than options | |||
Outstanding, beginning balance | 444,301 | ||
Outstanding, ending balance | 444,301 | ||
2023 | |||
Disclosure of Equity Instruments other than options | |||
Outstanding, beginning balance | 185,179 | ||
Outstanding, ending balance | 262,738 | 185,179 | |
2024 | |||
Disclosure of Equity Instruments other than options | |||
Outstanding, beginning balance | 78,360 | ||
Outstanding, ending balance | 126,812 | 78,360 | |
2025 | |||
Disclosure of Equity Instruments other than options | |||
Outstanding, ending balance | 53,717 | ||
After award date year one | |||
Disclosure of Equity Instruments other than options | |||
Vesting of stock options ( as a percentage) | 33.33% | ||
After award date year two | |||
Disclosure of Equity Instruments other than options | |||
Vesting of stock options ( as a percentage) | 33.33% | ||
After award date year three | |||
Disclosure of Equity Instruments other than options | |||
Vesting of stock options ( as a percentage) | 33.33% |
SHARE BASED PAYMENTS - Deferred
SHARE BASED PAYMENTS - Deferred Share Units (Details) - Deferred Share Unit Plan | 12 Months Ended | |
Dec. 31, 2022 USD ($) EquityInstruments | Dec. 31, 2021 USD ($) EquityInstruments | |
Disclosure of Equity Instruments other than options | ||
Outstanding, beginning balance | 707,028 | 644,525 |
Awarded and vested immediately | 69,290 | 62,503 |
Vested and settled (in shares) | (216,593) | |
Outstanding, ending balance | 559,725 | 707,028 |
Number of instruments settled in cash | 104,759 | |
Cash proceeds from settlement of instruments | $ | $ 330,000 | $ 0 |
SHARE BASED PAYMENTS - Bonus Un
SHARE BASED PAYMENTS - Bonus Units (Details) - Bonus shares - EquityInstruments | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of Equity Instruments other than options | |||
Outstanding | 500,000 | 500,000 | |
Vested (in shares) | 500,000 | 500,000 | |
Directors | |||
Disclosure of Equity Instruments other than options | |||
Awarded | 500,000 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of transactions between related parties [line items] | ||
Share based payments | $ 1,987,000 | $ 1,750,000 |
Total Key Management compensation | 6,149,000 | 3,513,000 |
Accrued short term | 1,147,000 | 783,000 |
Directors | ||
Disclosure of transactions between related parties [line items] | ||
Salaries and short term incentives paid | 291,000 | 183,000 |
Consulting fees | ||
Disclosure of transactions between related parties [line items] | ||
Salaries and short term incentives paid | $ 3,871,000 | $ 1,580,000 |
SUPPLEMENTAL CASH FLOW INFORM_3
SUPPLEMENTAL CASH FLOW INFORMATION - Changes in non-cash working capital (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
SUPPLEMENTAL CASH FLOW INFORMATION | ||
Accounts receivable and prepaid expenses | $ (47) | $ (604) |
Inventory | (9,177) | (10,846) |
Value added taxes recoverable | (8,044) | |
Trade and other payables | 3,378 | 3,335 |
Accrued liabilities | (1,891) | 1,470 |
Changes in non-cash working capital | $ (15,781) | $ (6,645) |
SUPPLEMENTAL CASH FLOW INFORM_4
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Initial recognition of right of use assets with an offset to lease obligation | $ 2,300 | $ 1,769 |
Interest on lease liabilities | 87 | 32 |
Common shares issued upon acquisition of Gold Standard, credited to share capital with an offset to the assets acquired and liabilities assumed | 149,363 | |
Replacement options issued upon acquisition of Gold Standard, credited to reserves with an offset to the assets acquired and liabilities assumed | 1,647 | |
Stock options | ||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Liabilities arising from financing activities | 3,033 | 277 |
RSUs | ||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Shares issued | 541 | 487 |
Deferred Stock Unit | ||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Liabilities arising from financing activities | 324 | |
Warrants Exercised [member] | ||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Liabilities arising from financing activities | $ 5,143 | 2,140 |
Fresnillo obligation | ||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Liabilities arising from financing activities | $ 37,800 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of geographical areas [line items] | ||
Revenue | $ 193,230 | $ 4,124 |
Cost of sales | (65,369) | (1,391) |
EARNINGS FROM MINING OPERATIONS | 127,861 | 2,733 |
Exploration and evaluation expenses | (18,939) | (15,108) |
General and administrative expenses | (10,913) | (7,207) |
Depreciation | (277) | (154) |
Share based payments | (2,447) | (2,329) |
Interest income | 2,167 | 341 |
Interest and accretion expense | (8,890) | (1,637) |
Loss on early settlement of project loan | (13,219) | |
Interest and finance costs | (1,296) | |
Foreign exchange | 3,014 | (3,726) |
Other gain (loss) | 41 | 809 |
Income taxes | (32,628) | |
INCOME (LOSS) FOR THE PERIOD | 45,770 | (26,278) |
Property, plant and equipment | 224,416 | 7,635 |
Mineral properties under development and construction | 213,749 | |
Exploration and evaluation properties | 242,743 | 82,743 |
Total assets | 613,816 | 364,895 |
Total liabilities | (216,832) | (180,478) |
Mexico | ||
Disclosure of geographical areas [line items] | ||
Revenue | 193,109 | 4,124 |
Cost of sales | (65,320) | (1,391) |
EARNINGS FROM MINING OPERATIONS | 127,789 | 2,733 |
Exploration and evaluation expenses | (3,765) | (9,908) |
Depreciation | (23) | |
Share based payments | (37) | (89) |
Interest income | 1,844 | |
Interest and accretion expense | (2,315) | |
Interest and finance costs | (1,406) | |
Foreign exchange | (778) | (3,956) |
Other gain (loss) | 220 | |
Income taxes | (29,478) | |
INCOME (LOSS) FOR THE PERIOD | 93,237 | (12,406) |
Property, plant and equipment | 222,767 | 7,466 |
Mineral properties under development and construction | 213,749 | |
Total assets | 348,390 | 267,403 |
Panama | ||
Disclosure of geographical areas [line items] | ||
Exploration and evaluation expenses | (7,176) | (4,771) |
Depreciation | (15) | (36) |
Share based payments | (70) | (51) |
INCOME (LOSS) FOR THE PERIOD | (7,261) | (4,858) |
Property, plant and equipment | 39 | 37 |
Exploration and evaluation properties | 82,429 | 82,429 |
Total assets | 83,291 | 83,162 |
USA | ||
Disclosure of geographical areas [line items] | ||
Exploration and evaluation expenses | (7,616) | (366) |
Depreciation | (45) | |
Interest and accretion expense | (35) | |
Foreign exchange | 37 | |
Other gain (loss) | 39 | |
INCOME (LOSS) FOR THE PERIOD | (7,620) | (366) |
Property, plant and equipment | 577 | |
Exploration and evaluation properties | 160,314 | 314 |
Total assets | 163,857 | 314 |
Canada | ||
Disclosure of geographical areas [line items] | ||
Revenue | 121 | |
Cost of sales | (49) | |
EARNINGS FROM MINING OPERATIONS | 72 | |
Exploration and evaluation expenses | (382) | (63) |
General and administrative expenses | (10,913) | (7,207) |
Depreciation | (194) | (118) |
Share based payments | (2,340) | (2,189) |
Interest income | 323 | |
Interest and accretion expense | (6,540) | |
Loss on early settlement of project loan | (13,219) | |
Interest and finance costs | (110) | |
Foreign exchange | 3,755 | 230 |
Other gain (loss) | 2 | 589 |
Income taxes | (3,150) | |
INCOME (LOSS) FOR THE PERIOD | (32,586) | (8,648) |
Property, plant and equipment | 1,033 | 132 |
Total assets | $ 18,278 | $ 14,016 |
CAPITAL MANAGEMENT (Details)
CAPITAL MANAGEMENT (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 28, 2022 | Dec. 31, 2022 | Dec. 31, 2019 | |
Disclosure of risk management strategy related to hedge accounting [line items] | |||
Debt instrument credit facility leverage ratio | 3% | ||
Credit facility | |||
Disclosure of risk management strategy related to hedge accounting [line items] | |||
Notional amount | $ 100 | ||
Amount drawn down upon closing | $ 50 | $ 30 | |
Camino Rojo project loan | |||
Disclosure of risk management strategy related to hedge accounting [line items] | |||
Notional amount | $ 125 | ||
Minimum | Credit facility | |||
Disclosure of risk management strategy related to hedge accounting [line items] | |||
Working capital | 15 | ||
Maximum | Credit facility | |||
Disclosure of risk management strategy related to hedge accounting [line items] | |||
Working capital | $ 151.6 |
FINANCIAL INSTRUMENTS (Details)
FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fresnillo obligation | ||
Financial Instruments | ||
Discount rate | 7.50% | 5% |
Credit facility | ||
Financial Instruments | ||
Discount rate | 7.50% | |
Carrying value | ||
Financial Instruments | ||
Financial assets | $ 100,027 | $ 24,495 |
Financial liabilities | 165,786 | 174,379 |
Carrying value | Amortized cost, liabilities | Trade payables | ||
Financial Instruments | ||
Financial liabilities | 8,851 | 5,966 |
Carrying value | Amortized cost, liabilities | Accrued liabilities | ||
Financial Instruments | ||
Financial liabilities | 7,967 | 5,659 |
Carrying value | Amortized cost, liabilities | Fresnillo obligation | ||
Financial Instruments | ||
Financial liabilities | 22,800 | 37,800 |
Carrying value | Amortized cost, liabilities | Lease obligation | ||
Financial Instruments | ||
Financial liabilities | 3,173 | 1,401 |
Carrying value | Amortized cost, liabilities | Credit facility | ||
Financial Instruments | ||
Financial liabilities | 122,995 | |
Carrying value | Amortized cost, liabilities | Camino Rojo project loan | ||
Financial Instruments | ||
Financial liabilities | 113,260 | |
Carrying value | Amortized cost, liabilities | Newmont loan | ||
Financial Instruments | ||
Financial liabilities | 10,293 | |
Carrying value | FVTPL, financial asset | Cash and cash equivalents. | ||
Financial Instruments | ||
Financial assets | 96,278 | 20,516 |
Carrying value | Amortized costs, financial asset | Accounts receivable | ||
Financial Instruments | ||
Financial assets | 317 | 299 |
Carrying value | Amortized costs, financial asset | Restricted funds | ||
Financial Instruments | ||
Financial assets | 3,432 | 3,680 |
Fair value | ||
Financial Instruments | ||
Financial assets | 100,027 | 24,495 |
Financial liabilities | 166,737 | 199,105 |
Fair value | Amortized cost, liabilities | Trade payables | ||
Financial Instruments | ||
Financial liabilities | 8,851 | 5,966 |
Fair value | Amortized cost, liabilities | Accrued liabilities | ||
Financial Instruments | ||
Financial liabilities | 7,967 | 5,659 |
Fair value | Amortized cost, liabilities | Fresnillo obligation | ||
Financial Instruments | ||
Financial liabilities | 22,296 | 37,800 |
Fair value | Amortized cost, liabilities | Lease obligation | ||
Financial Instruments | ||
Financial liabilities | 3,173 | 1,401 |
Fair value | Amortized cost, liabilities | Credit facility | ||
Financial Instruments | ||
Financial liabilities | 124,450 | |
Fair value | Amortized cost, liabilities | Camino Rojo project loan | ||
Financial Instruments | ||
Financial liabilities | 137,746 | |
Fair value | Amortized cost, liabilities | Newmont loan | ||
Financial Instruments | ||
Financial liabilities | 10,533 | |
Fair value | FVTPL, financial asset | Cash and cash equivalents. | ||
Financial Instruments | ||
Financial assets | 96,278 | 20,516 |
Fair value | Amortized costs, financial asset | Accounts receivable | ||
Financial Instruments | ||
Financial assets | 317 | 299 |
Fair value | Amortized costs, financial asset | Restricted funds | ||
Financial Instruments | ||
Financial assets | 3,432 | 3,680 |
Approximate fair value due to short term nature of the instrument | ||
Financial Instruments | ||
Financial assets | 296 | 283 |
Financial liabilities | 16,466 | 11,625 |
Approximate fair value due to short term nature of the instrument | Amortized cost, liabilities | Trade payables | ||
Financial Instruments | ||
Financial liabilities | 8,851 | 5,966 |
Approximate fair value due to short term nature of the instrument | Amortized cost, liabilities | Accrued liabilities | ||
Financial Instruments | ||
Financial liabilities | 7,615 | 5,659 |
Approximate fair value due to short term nature of the instrument | Amortized costs, financial asset | Accounts receivable | ||
Financial Instruments | ||
Financial assets | 296 | 283 |
Level 1 of fair value hierarchy [member] | Fair value | ||
Financial Instruments | ||
Financial assets | 99,731 | 20,532 |
Financial liabilities | 352 | |
Level 1 of fair value hierarchy [member] | Fair value | Amortized cost, liabilities | Accrued liabilities | ||
Financial Instruments | ||
Financial liabilities | 352 | |
Level 1 of fair value hierarchy [member] | Fair value | FVTPL, financial asset | Cash and cash equivalents. | ||
Financial Instruments | ||
Financial assets | 96,278 | 20,516 |
Level 1 of fair value hierarchy [member] | Fair value | Amortized costs, financial asset | Accounts receivable | ||
Financial Instruments | ||
Financial assets | 21 | 16 |
Level 1 of fair value hierarchy [member] | Fair value | Amortized costs, financial asset | Restricted funds | ||
Financial Instruments | ||
Financial assets | 3,432 | |
Level 2 of fair value hierarchy [member] | Fair value | ||
Financial Instruments | ||
Financial assets | 3,680 | |
Financial liabilities | 3,173 | 187,480 |
Level 2 of fair value hierarchy [member] | Fair value | Amortized cost, liabilities | Fresnillo obligation | ||
Financial Instruments | ||
Financial liabilities | 37,800 | |
Level 2 of fair value hierarchy [member] | Fair value | Amortized cost, liabilities | Lease obligation | ||
Financial Instruments | ||
Financial liabilities | 3,173 | 1,401 |
Level 2 of fair value hierarchy [member] | Fair value | Amortized cost, liabilities | Camino Rojo project loan | ||
Financial Instruments | ||
Financial liabilities | 137,746 | |
Level 2 of fair value hierarchy [member] | Fair value | Amortized cost, liabilities | Newmont loan | ||
Financial Instruments | ||
Financial liabilities | 10,533 | |
Level 2 of fair value hierarchy [member] | Fair value | Amortized costs, financial asset | Restricted funds | ||
Financial Instruments | ||
Financial assets | $ 3,680 | |
Level 3 of fair value hierarchy [member] | Fair value | ||
Financial Instruments | ||
Financial liabilities | 146,746 | |
Level 3 of fair value hierarchy [member] | Fair value | Amortized cost, liabilities | Fresnillo obligation | ||
Financial Instruments | ||
Financial liabilities | 22,296 | |
Level 3 of fair value hierarchy [member] | Fair value | Amortized cost, liabilities | Credit facility | ||
Financial Instruments | ||
Financial liabilities | $ 124,450 |
FINANCIAL INSTRUMENTS - Liquidi
FINANCIAL INSTRUMENTS - Liquidity risk (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financial Instruments | ||
Borrowings | $ 145,795 | $ 161,353 |
Liquidity risk | ||
Financial Instruments | ||
Financial liabilities | 190,199 | 221,465 |
Trade and other payables | 8,851 | 5,966 |
Accrued liabilities | 7,967 | 5,659 |
Lease obligation | 3,527 | 1,417 |
Credit facility | 146,006 | |
Liquidity risk | Camino Rojo project loan | ||
Financial Instruments | ||
Borrowings | 157,083 | |
Liquidity risk | Newmont loan | ||
Financial Instruments | ||
Borrowings | 10,662 | |
Liquidity risk | Fresnillo obligation | ||
Financial Instruments | ||
Trade and other payables | 23,848 | 40,678 |
Less than 3 months | Liquidity risk | ||
Financial Instruments | ||
Financial liabilities | 25,161 | 14,962 |
Trade and other payables | 8,851 | 5,966 |
Accrued liabilities | 7,967 | 5,659 |
Lease obligation | 248 | 114 |
Credit facility | 7,810 | |
Less than 3 months | Liquidity risk | Camino Rojo project loan | ||
Financial Instruments | ||
Borrowings | 2,750 | |
Less than 3 months | Liquidity risk | Fresnillo obligation | ||
Financial Instruments | ||
Trade and other payables | 285 | 473 |
Between 3 months and 1 year | Liquidity risk | ||
Financial Instruments | ||
Financial liabilities | 47,174 | 35,558 |
Lease obligation | 743 | 289 |
Credit facility | 22,868 | |
Between 3 months and 1 year | Liquidity risk | Camino Rojo project loan | ||
Financial Instruments | ||
Borrowings | 8,250 | |
Between 3 months and 1 year | Liquidity risk | Newmont loan | ||
Financial Instruments | ||
Borrowings | 10,662 | |
Between 3 months and 1 year | Liquidity risk | Fresnillo obligation | ||
Financial Instruments | ||
Trade and other payables | 23,563 | 16,357 |
Between 1 year and 3 years | Liquidity risk | ||
Financial Instruments | ||
Financial liabilities | 86,876 | 170,425 |
Lease obligation | 1,310 | 494 |
Credit facility | 85,566 | |
Between 1 year and 3 years | Liquidity risk | Camino Rojo project loan | ||
Financial Instruments | ||
Borrowings | 146,083 | |
Between 1 year and 3 years | Liquidity risk | Fresnillo obligation | ||
Financial Instruments | ||
Trade and other payables | 23,848 | |
Later than 3 years | Liquidity risk | ||
Financial Instruments | ||
Financial liabilities | 30,988 | 520 |
Lease obligation | 1,226 | $ 520 |
Credit facility | $ 29,762 |
FINANCIAL INSTRUMENTS - Commodi
FINANCIAL INSTRUMENTS - Commodity price risk and Currency risk (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Currency risk | ||
Financial Instruments | ||
Percentage of reasonably possible increase in unobservable input, assets | 10% | |
Percentage of reasonably possible decrease in unobservable input, liabilities | 10% | |
Increase (decrease) in fair value measurement due to reasonably possible increase | $ 4,500,000 | $ 12,200,000 |
Increase (decrease) in fair value measurement due to reasonably possible decrease | 600,000 | 4,200,000 |
Interest rate risk | ||
Financial Instruments | ||
Increase (decrease) in fair value measurement due to reasonably possible increase | $ 361,000 | 520,000 |
Fresnillo obligation | ||
Financial Instruments | ||
Applicable margin (as a percent) | 5% | |
Gold and silver | Commodity Price risk | Price | ||
Financial Instruments | ||
Percentage of reasonably possible increase in unobservable input, assets | 10% | |
Increase in revenue due to increase in price | $ 19,323,000 | $ 409,000 |
FINANCIAL INSTRUMENTS - Financi
FINANCIAL INSTRUMENTS - Financial instruments (Details) | 12 Months Ended | ||||||||||||
Dec. 31, 2022 CAD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 MXN ($) | Dec. 31, 2021 CAD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 MXN ($) | Dec. 31, 2021 CAD ($) $ / shares | Dec. 31, 2021 CAD ($) $ / shares | Dec. 31, 2021 CAD ($) $ / $ | Dec. 31, 2022 USD ($) | Dec. 31, 2022 MXN ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 MXN ($) | |
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||||||||||||
Total foreign currency | $ 10,964,000 | $ (69,269,000) | $ (127,410,000) | $ 5,919,000 | $ (143,874,000) | $ (219,835,000) | |||||||
Exchange rate | 1.3544 | 1 | 19.3615 | 1.2678 | 1 | 20.5835 | |||||||
Equivalent US dollars | $ 8,095,000 | 4,669,000 | $ 4,669,000 | $ 4,669,000 | $ 4,669,000 | $ (69,269,000) | $ (6,581,000) | $ (143,874,000) | $ (10,680,000) | ||||
Trade payables | |||||||||||||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||||||||||||
Total foreign currency | (337,000) | $ (6,104,000) | $ (87,298,000) | (128,000) | (2,642,000) | (66,350,000) | |||||||
Lease obligations | |||||||||||||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||||||||||||
Total foreign currency | (1,323,000) | (1,103,000) | (21,158,000) | (74,000) | (520,000) | (16,935,000) | |||||||
Camino Rojo project loan | |||||||||||||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||||||||||||
Total foreign currency | (113,260,000) | ||||||||||||
Newmont loan | |||||||||||||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||||||||||||
Total foreign currency | (211,881,000) | ||||||||||||
Fresnillo obligation | |||||||||||||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||||||||||||
Total foreign currency | 0 | (22,800,000) | (37,800,000) | ||||||||||
Accrued liabilities | |||||||||||||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||||||||||||
Total foreign currency | (2,972,000) | (4,447,000) | (25,679,000) | (1,637,000) | (2,226,000) | (44,070,000) | |||||||
Credit Facility | |||||||||||||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||||||||||||
Total foreign currency | 0 | (122,995,000) | |||||||||||
Cash | |||||||||||||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||||||||||||
Total foreign currency | 15,498,000 | 84,771,000 | 1,250,000 | 7,583,000 | 12,061,000 | 50,923,000 | |||||||
Accounts receivable | |||||||||||||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||||||||||||
Total foreign currency | 28,000 | 29,000 | $ 5,475,000 | 20,000 | 4,000 | 5,733,000 | |||||||
Restricted funds | |||||||||||||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||||||||||||
Total foreign currency | $ 70,000 | $ 3,380,000 | $ 155,000 | $ 509,000 | $ 62,745,000 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
South Railroad Project | ||
Commitments and Contingencies | ||
Capital commitments | $ 3,200,000 | |
Period for completing capital commitments | 24 months | |
South Railroad Project | Minimum | ||
Commitments and Contingencies | ||
Capital commitments | $ 800,000 | |
Purchase orders and contracts | ||
Commitments and Contingencies | ||
Capital commitments | $ 2,019,000 | $ 8,560,000 |
Period for completing capital commitments | 12 months | |
Severance payments | ||
Commitments and Contingencies | ||
Financial effect | $ 3,700,000 | $ 3,220,000 |
TAX EXPENSE - Tax amounts recog
TAX EXPENSE - Tax amounts recognized in profit or loss (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) component | |
TAX EXPENSE | |
Number of components of current income tax expense | component | 3 |
Special Mining Duty | 7.50% |
Current income tax expense | $ 22,512 |
Mexican 7.5% Special Mining Duty | 9,371 |
Withholding taxes | 3,150 |
Deferred income tax (recovery) | (2,698) |
Deferred Mexican 7.5% Special Mining Duty expense | 293 |
Tax expenses (Total income taxes) | $ 32,628 |
TAX EXPENSE - Reconciliation of
TAX EXPENSE - Reconciliation of tax rate (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of average effective tax rate and applicable tax rate | ||
Income (loss) before tax | $ 78,398 | $ (26,278) |
Statutory income tax rate | 26.80% | 26.80% |
Expected income tax | $ 21,036 | $ (7,042) |
Differences between Canadian and foreign tax rates | 4,117 | (744) |
Items not deductible for tax purposes | 2,850 | |
Items not deductible for tax purposes (credit) | 4,508 | |
Share based compensation | 107 | 587 |
Change in unrecognized deductible temporary differences | (7,778) | 6,208 |
True ups | 1,901 | (1,913) |
Effect of changes in tax rates from prior years | (71) | |
Effect of changes in foreign exchange rates | (2,371) | 393 |
Inflationary adjustment and other | (1,532) | $ (268) |
Mexican special mining duty | 9,576 | |
Tax expenses (Total income taxes) | $ 32,628 | |
Effective tax rate | 41.60% |
TAX EXPENSE - Unrecognized dedu
TAX EXPENSE - Unrecognized deductible temporary differences (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
TAX EXPENSE | ||
Unrecognized deductible temporary differences | $ 95,686 | $ 115,504 |
Mineral properties and exploration expenditures | ||
TAX EXPENSE | ||
Unrecognized deductible temporary differences | 30,467 | 55,548 |
Equipment | ||
TAX EXPENSE | ||
Unrecognized deductible temporary differences | 1,251 | 1,814 |
Site closure provisions | ||
TAX EXPENSE | ||
Unrecognized deductible temporary differences | 356 | 5,460 |
Share issue costs | ||
TAX EXPENSE | ||
Unrecognized deductible temporary differences | 3,452 | 5,724 |
Long term debt | ||
TAX EXPENSE | ||
Unrecognized deductible temporary differences | 6,570 | |
Non-capital losses | ||
TAX EXPENSE | ||
Unrecognized deductible temporary differences | 53,436 | 41,343 |
Intercompany debt | ||
TAX EXPENSE | ||
Unrecognized deductible temporary differences | 413 | |
Other | ||
TAX EXPENSE | ||
Unrecognized deductible temporary differences | $ 5,202 | |
Unrecognized deductible temporary differences (liability) | $ 154 |
TAX EXPENSE - Recognized deferr
TAX EXPENSE - Recognized deferred tax assets and liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
TAX EXPENSE | ||
Recognized deferred tax assets (liabilities) | $ 2,405 | |
Property, plant and equipment [member] | ||
TAX EXPENSE | ||
Recognized deferred tax assets (liabilities) | (216) | $ (8,173) |
Site closure provisions [member] | ||
TAX EXPENSE | ||
Recognized deferred tax assets (liabilities) | 2,363 | |
Long term debt | ||
TAX EXPENSE | ||
Recognized deferred tax assets (liabilities) | (1,786) | |
Non-capital losses | ||
TAX EXPENSE | ||
Recognized deferred tax assets (liabilities) | 1,397 | 10,447 |
Intercompany debt | ||
TAX EXPENSE | ||
Recognized deferred tax assets (liabilities) | (1,619) | |
Other | ||
TAX EXPENSE | ||
Recognized deferred tax assets (liabilities) | $ 480 | $ (488) |
TAX EXPENSE - Temporary differe
TAX EXPENSE - Temporary difference on investment in subsidiaries (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
TAX EXPENSE | ||
Temporary differences associated with investments in subsidiaries for which a deferred income tax liability has not been recognized | $ 62 | $ 5 |
TAX EXPENSE - Tax loss carryfor
TAX EXPENSE - Tax loss carryforwards (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Canada | ||
TAX EXPENSE | ||
Tax loss carryforwards | $ 61,214 | $ 46,354 |
Mexico | ||
TAX EXPENSE | ||
Tax loss carryforwards | 29,851 | |
Panama | ||
TAX EXPENSE | ||
Tax loss carryforwards | 736 | 655 |
USA | ||
TAX EXPENSE | ||
Tax loss carryforwards | $ 27,086 | $ 16 |
RECLASSIFICATIONS OF PRIOR PE_2
RECLASSIFICATIONS OF PRIOR PERIOD FIGURES (Details) | 12 Months Ended | ||
Dec. 31, 2022 USD ($) | Dec. 31, 2022 CAD ($) | Dec. 31, 2021 USD ($) | |
Disclosure of reclassifications or changes in presentation [line items] | |||
Interest income and finance costs | $ (6,723,000) | $ (1,296,000) | |
Interest income | 2,167,000 | 341,000 | |
Interest and accretion expense | (8,890,000) | (1,637,000) | |
Revenue | 193,230,000 | 4,124,000 | |
Refining and transportation costs | 1,059,000 | 33,000 | |
Operating costs | 45,597,000 | 1,280,000 | |
Other gains and losses | (31,000) | 23,000 | |
Proceeds from exercise of warrants | 830,000 | $ 1,111,500 | |
Proceeds from exercise of options | $ 20,024,000 | 14,754,000 | |
Financing activities breakdown between previously and currently presented | 48,196,000 | ||
As previously presented | |||
Disclosure of reclassifications or changes in presentation [line items] | |||
Interest income and finance costs | (1,296,000) | ||
Revenue | 4,091,000 | ||
Operating costs | 1,247,000 | ||
Other gains and losses | (211,000) | ||
Exploration expense paid via the issuance of common shares | 150,000 | ||
Changes in site closure provisions charged to exploration expense | 84,000 | ||
Proceeds from issuance of common shares, net of issuance costs | 34,442,000 | ||
Proceeds from exercise of warrants | 14,279,000 | ||
Proceeds from exercise of options | 475,000 | ||
Common share issuance costs | (1,000,000) | ||
Grouping and disaggregation | |||
Disclosure of reclassifications or changes in presentation [line items] | |||
Interest income | 341,000 | ||
Interest and accretion expense | (1,637,000) | ||
Refining and transportation costs | 33,000 | ||
Proceeds from issuance of common shares, net of issuance costs | 33,442,000 | ||
Proceeds from exercise of options | $ 14,754,000 |