Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2023 shares | |
Document Information | |
Document Type | 40-F |
Amendment Flag | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2023 |
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 | 315,073,995 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Emerging Growth Company | false |
Icfr Auditor Attestation Flag | true |
Entity Central Index Key | 0001680056 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2023 |
Auditor Name | Ernst & Young LLP |
Auditor Location | Vancouver, Canada |
Auditor Firm ID | 1263 |
Document Financial Statement Error Correction [Flag] | false |
Business Contact | |
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, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 96,632 | $ 96,278 |
Trade and other receivables | 379 | 365 |
Value added taxes recoverable (note 9) | 15,571 | 8,659 |
Inventory (note 8) | 29,451 | 22,446 |
Prepaid expenses | 3,142 | 2,824 |
Restricted cash | 2,290 | |
Total current assets | 145,175 | 132,862 |
Non-current financial assets | ||
Restricted cash | 1,011 | 1,142 |
Value added taxes recoverable (note 9) | 826 | 5,229 |
Long term inventory (note 8) | 5,627 | 4,096 |
Property, plant and equipment (note 10) | 211,719 | 224,416 |
Exploration and evaluation properties (note 11) | 170,000 | 242,743 |
Deferred tax asset | 2,405 | |
Other non-current assets | 1,420 | 923 |
TOTAL ASSETS | 535,778 | 613,816 |
Current liabilities | ||
Trade payables and accrued liabilities (note 12) | 20,656 | 19,675 |
Current portion of long term debt (note 13) | 45,000 | |
Income taxes payable | 8,002 | 33,102 |
Total current liabilities | 28,658 | 97,777 |
Non-Current | ||
Lease obligations (note 14) | 1,993 | 2,327 |
Long term debt (note 13) | 88,350 | 100,795 |
Deferred revenue | 8,176 | 7,500 |
Site closure provisions (note 15) | 7,424 | 8,261 |
Other long term liabilities | 443 | 172 |
Deferred tax liabilities | 193 | |
TOTAL LIABILITIES | 135,237 | 216,832 |
SHAREHOLDERS' EQUITY | ||
Share capital (note 16) | 474,361 | 445,316 |
Reserves | 24,387 | 24,009 |
Accumulated other comprehensive loss | (439) | (1,583) |
Accumulated deficit | (97,768) | (70,758) |
TOTAL SHAREHOLDERS' EQUITY | 400,541 | 396,984 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 535,778 | $ 613,816 |
Consolidated Statements of Inco
Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) | ||
REVENUE (note 3) | $ 233,643 | $ 193,230 |
COST OF SALES | ||
Operating costs (note 4(a)) | (57,672) | (45,597) |
Depletion and depreciation | (28,649) | (14,953) |
Royalties (note 4(b)) | (5,795) | (4,819) |
Cost of sales | (92,116) | (65,369) |
EARNINGS FROM MINING OPERATIONS | 141,527 | 127,861 |
GENERAL AND ADMINISTRATIVE EXPENSES (note 6) | (13,408) | (10,913) |
EXPLORATION AND EVALUATION EXPENSES | ||
Exploration and evaluation (note 5) | (34,616) | (18,939) |
Loss on impairment and derecognition of exploration properties (note 11) | (72,743) | |
Exploration And Evaluation Costs, Net of Impairment | (107,359) | (18,939) |
OTHER | ||
Interest income | 5,387 | 2,167 |
Depreciation | (504) | (277) |
Share based payments (note 18) | (3,221) | (2,447) |
Interest and accretion expense (note 7) | (11,838) | (8,890) |
Loss on extinguishment of Credit Facility (note 13(a)) | (1,547) | (13,219) |
Foreign exchange and other gains (losses) | (1,443) | 3,055 |
Other expenses (income) | (13,166) | (19,611) |
INCOME BEFORE TAXES | 7,594 | 78,398 |
Income taxes (note 25) | (34,604) | (32,628) |
INCOME (LOSS) FOR THE YEAR | (27,010) | 45,770 |
Items that may in future periods be reclassified to profit or loss: | ||
Foreign currency differences arising on translation | 1,144 | (4,024) |
TOTAL COMPREHENSIVE INCOME (LOSS) | $ (25,866) | $ 41,746 |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - Basic (in shares) | 311,482 | 272,202 |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - Diluted (in shares) | 311,482 | 292,816 |
EARNINGS PER SHARE - Basic (in dollars per share) | $ (0.09) | $ 0.17 |
EARNINGS PER SHARE - Diluted (in dollars per share) | $ (0.09) | $ 0.16 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
OPERATING ACTIVITIES | ||
Income (loss) for the year | $ (27,010) | $ 45,770 |
Adjustments for: | ||
Interest and accretion expense (note 7) | 11,838 | 8,890 |
Income tax expense | 34,604 | 32,628 |
Income taxes paid | (27,848) | (3,150) |
Income tax instalments paid | (28,910) | |
Payment of cash settled RSUs and DSUs | (466) | (2,049) |
Adjustments for items not affecting cash: | ||
Depreciation and depletion | 29,153 | 15,230 |
Share based payments (note 18) | 3,221 | 2,447 |
Unrealized foreign exchange loss (gain) | (843) | (1,862) |
Loss on impairment and derecognition of exploration properties (note 11) | 72,743 | |
Loss on extinguishment of credit facility | 1,547 | 13,219 |
Other | 866 | (31) |
Cash provided by operating activities before changes in non-cash working capital | 68,895 | 111,092 |
Changes in non-cash working capital (note 20(b)) | (3,599) | (15,781) |
Cash provided by operating activities | 65,296 | 95,311 |
INVESTING ACTIVITIES | ||
Purchase of plant and equipment | (8,149) | (5,726) |
Expenditures on mineral properties | (12,705) | (12,252) |
Deposits and other payments on long term assets | (496) | (855) |
Restricted cash and environmental bonding | 2,422 | 3,176 |
Value added taxes received | 18,527 | |
Payment pursuant to the Layback Agreement (note 13(c)) | (22,800) | (15,000) |
Acquisition of Gold Standard, net of cash received | (1,226) | |
Cash used in investing activities | (41,728) | (13,356) |
FINANCING ACTIVITIES | ||
Proceeds from issuance of common shares, net (note 16(b)) | 18,434 | (261) |
Proceeds from exercise of stock options and warrants | 7,760 | 20,024 |
Changes in Project Loan, Credit Facility, and Revolving Facility (note 20(c)) | (36,559) | (15,752) |
Interest paid | (11,797) | (8,816) |
Lease payments | (969) | (574) |
Cash used in financing activities | (23,131) | (5,379) |
Effects of exchange rate changes on cash | (83) | (814) |
Net increase in cash | 354 | 75,762 |
Cash, beginning of year | 96,278 | 20,516 |
CASH, END OF YEAR | $ 96,632 | $ 96,278 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) shares in Thousands, $ in Thousands | Common shares | Reserves | Share based payments reserve | Warrants reserve | Accumulated Other Comprehensive Income (loss) | Accumulated deficit | Total |
Equity at beginning of period at Dec. 31, 2021 | $ 269,198 | $ 29,306 | $ 10,051 | $ 19,255 | $ 2,441 | $ (116,528) | $ 184,417 |
Shares at beginning of period at Dec. 31, 2021 | 247,600 | ||||||
Shares issued pursuant to a financing | $ 149,363 | 149,363 | |||||
Shares issued pursuant to a financing (in shares) | 43,689 | ||||||
Share issuance costs | $ (261) | (261) | |||||
RSUs settled in cash (note 18) | (1,320) | (403) | (403) | (1,723) | |||
RSUs reclassified to cash settled (note 18) | (310) | (310) | (310) | ||||
DSUs redeemed (note 18) | $ 165 | (165) | (165) | ||||
DSUs redeemed (note 18) (in shares) | 112 | ||||||
DSUs settled in cash (note 18) | $ (167) | (159) | (159) | (326) | |||
Replacement options issued | 1,647 | 1,647 | 1,647 | ||||
Warrants exercised (note 16) | $ 21,334 | (5,143) | (5,143) | 16,191 | |||
Warrants exercised (note 16) (in shares) | 10,697 | ||||||
Options exercised (note 18) | $ 6,866 | (3,033) | (3,033) | 3,833 | |||
Options exercised (note 18) (in shares) | 3,675 | ||||||
RSUs redeemed (note 18) | $ 138 | (138) | (138) | ||||
RSUs redeemed (note 18) (in shares) | 36 | ||||||
Share based payments (note 18) | 2,407 | 2,407 | 2,407 | ||||
Income (loss) for the year | 45,770 | 45,770 | |||||
Other comprehensive income (loss) | (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 | 305,809 | ||||||
Shares issued pursuant to a financing | $ 18,434 | 18,434 | |||||
Shares issued pursuant to a financing (in shares) | 3,987 | ||||||
Share issued for property payments | $ 242 | 242 | |||||
Share issued for property payments (in shares) | 62 | ||||||
Warrants exercised (note 16) | $ 3,215 | (345) | (345) | 2,870 | |||
Warrants exercised (note 16) (in shares) | 1,292 | ||||||
Options exercised (note 18) | $ 6,926 | (2,036) | (2,036) | 4,890 | |||
Options exercised (note 18) (in shares) | 3,866 | ||||||
RSUs redeemed (note 18) | $ 228 | (228) | (228) | ||||
RSUs redeemed (note 18) (in shares) | 58 | ||||||
Share based payments (note 18) | 2,987 | 2,987 | 2,987 | ||||
Income (loss) for the year | (27,010) | (27,010) | |||||
Other comprehensive income (loss) | 1,144 | 1,144 | |||||
Equity at end of period at Dec. 31, 2023 | $ 474,361 | $ 24,387 | $ 10,620 | $ 13,767 | $ (439) | $ (97,768) | $ 400,541 |
Shares at end of period at Dec. 31, 2023 | 315,074 |
CORPORATE INFORMATION AND NATUR
CORPORATE INFORMATION AND NATURE OF OPERATIONS | 12 Months Ended |
Dec. 31, 2023 | |
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, the South Railroad and Lewis gold projects in Nevada, USA, and the Cerro Quema gold project in Panama. 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, 2023 | |
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 a 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 material accounting policies information below. The consolidated financial statements are presented in United States dollars. Our material accounting policies information is provided in note 27. The significant accounting judgements we applied and the significant accounting estimates we used are outlined in note 28. On March 19, 2024, 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, 2023 and 2022, the main operating subsidiaries of the Company, their geographic locations, and the ownership interests held by the Company, were as follows: Ownership at December 31 Name Principal activity 2023 2022 Location Minera Camino Rojo SA de CV Production 100 % 100 % Mexico Minera Cerro Quema SA Exploration 100 % 100 % Panama Gold Standard Ventures (US) Inc. Exploration 100 % 100 % USA Madison Enterprises Inc. Exploration 100 % 100 % USA |
REVENUE
REVENUE | 12 Months Ended |
Dec. 31, 2023 | |
REVENUE | |
REVENUE | 3. REVENUE Year ended December 31 2023 2022 Gold $ 230,955 $ 192,394 Silver 2,688 836 Revenue $ 233,643 $ 193,230 Customer A $ 54,707 $ 129,866 Customer B 70,072 47,937 Customer C 97,334 — Others 11,530 15,427 Revenue $ 233,643 $ 193,230 |
COST OF SALES
COST OF SALES | 12 Months Ended |
Dec. 31, 2023 | |
COST OF SALES | |
COST OF SALES | 4. COST OF SALES (a) Year ended December 31 2023 2022 Mining and processing costs $ 56,889 $ 44,538 Refining and transportation costs 783 1,059 $ 57,672 $ 45,597 (b) Year ended December 31 2023 2022 Camino Rojo Oxide 2% NSR royalty $ 4,628 $ 3,818 Mexican 0.5% Extraordinary Mining Duty 1,167 1,001 $ 5,795 $ 4,819 |
EXPLORATION AND EVALUATION EXPE
EXPLORATION AND EVALUATION EXPENSES | 12 Months Ended |
Dec. 31, 2023 | |
EXPLORATION AND EVALUATION EXPENSES | |
EXPLORATION AND EVALUATION EXPENSES | 5. EXPLORATION AND EVALUATION EXPENSES Year ended December 31 2023 2022 Camino Rojo $ 8,740 $ 3,765 Nevada (South Railroad, Lewis and Monitor Gold) 19,377 7,616 Cerro Quema 6,001 7,176 Other 498 382 $ 34,616 $ 18,939 |
GENERAL AND ADMINISTRATIVE EXPE
GENERAL AND ADMINISTRATIVE EXPENSES | 12 Months Ended |
Dec. 31, 2023 | |
GENERAL AND ADMINISTRATIVE EXPENSES | |
GENERAL AND ADMINISTRATIVE EXPENSES | 6. GENERAL AND ADMINISTRATIVE EXPENSES Year ended December 31 2023 2022 Office and administrative $ 3,552 $ 2,921 Professional fees 2,718 2,237 Regulatory and transfer agent 451 301 Salaries and benefits 6,687 5,454 $ 13,408 $ 10,913 |
INTEREST AND ACCRETION EXPENSE
INTEREST AND ACCRETION EXPENSE | 12 Months Ended |
Dec. 31, 2023 | |
INTEREST AND ACCRETION EXPENSE | |
INTEREST AND ACCRETION EXPENSE | 7. INTEREST AND ACCRETION EXPENSE Year ended December 31 2023 2022 Interest expense (note 7(a)) $ 10,254 $ 7,368 Accretion expense (note 7(b)) 1,584 1,522 Interest and accretion expense $ 11,838 $ 8,890 (a) Year ended December 31 2023 2022 Credit Facility (note 13(a)) $ 6,030 $ 4,903 Revolving Facility (note 13(b)) 2,736 — Fresnillo obligation (note 13(c)) 1,064 1,383 Project loan — 869 Interest expense on lease liabilities (note 14) 156 87 Other 268 126 $ 10,254 $ 7,368 (b) Year ended December 31 2023 2022 Credit Facility (note 13(a)) $ 369 $ 387 Accretion of site closure provisions (note 15) 539 508 Deferred revenue 676 — Newmont loan — 366 Project loan — 261 $ 1,584 $ 1,522 |
INVENTORY
INVENTORY | 12 Months Ended |
Dec. 31, 2023 | |
INVENTORY | |
INVENTORY | 8. December 31, December 31, 2023 2022 Current Stockpiled ore $ 913 $ 1,869 In-process inventory 20,509 15,961 Finished goods inventory 4,041 1,406 Materials and supplies 3,988 3,210 Inventory – current $ 29,451 $ 22,446 Long term Stockpiled low grade ore $ 5,627 $ 4,096 Long term inventory consists of stockpiled ore that is not expected to be processed within 12 months. Included within inventory at December 31, 2023 is $9.2 million of depreciation and depletion (December 31, 2022 — $6.3 million). |
VALUE ADDED TAXES RECOVERABLE
VALUE ADDED TAXES RECOVERABLE | 12 Months Ended |
Dec. 31, 2023 | |
VALUE ADDED TAXES RECOVERABLE | |
VALUE ADDED TAXES RECOVERABLE | 9. VALUE ADDED TAXES RECOVERABLE December 31, December 31, 2023 2022 Current portion $ 15,571 $ 8,659 Long term portion 826 5,229 $ 16,397 $ 13,888 Value added taxes (“VAT”) paid in Mexico are fully recoverable. However, VAT 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. We have used judgement in classifying the current and non-current portions of our Mexican VAT receivables. Factors that we considered include (i) the regularity of payments received, (ii) discussions with and communications from the Mexican tax authorities with respect to specific claims, and (iii) the expected length of time for refunds in accordance with Mexico’s regulations. At December 31, 2023, approximately 13.9 million Mexican pesos ($0.8 million) (December 31, 2022 — $4.4 million) were under dispute with the taxation authorities. This amount is included within long term value added taxes recoverable. During the fourth quarter of 2023, we reclassified 71.6 million Mexican pesos (US$4.2 million) of VAT from long term to current following the favorable resolution, after the quarter end, of an outstanding dispute with the Mexican tax authorities. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2023 | |
PROPERTY, PLANT AND EQUIPMENT | |
PROPERTY, PLANT AND EQUIPMENT | 10 . Our operating property is the Camino Rojo Oxide Gold Mine in Mexico and constitute substantially all our buildings, and machinery and equipment. Producing Machinery Other right mineral and Other of use Construction property Buildings equipment assets assets in progress Total Cost At January 1, 2022 $ — $ 66 $ 5,238 $ 1,261 $ 2,119 $ — $ 8,684 Additions 6,616 1,788 3,272 666 2,300 — 14,642 Transfer from 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 15) 1,155 (300) (190) — — — 665 Derecognition of leased assets — — — — (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 Additions 12,705 141 2,305 823 484 4,881 21,339 Change in site closure provision (note 15) (559) (927) (593) — — — (2,079) Disposals — — (5) — — — (5) Derecognition of leased assets — — — — (117) — (117) Due to changes in exchange rates — — — 7 22 — 29 At December 31, 2023 $ 127,899 $ 71,222 $ 54,052 $ 3,450 $ 4,549 $ 4,881 $ 266,053 Accumulated depreciation At January 1, 2022 — 6 350 288 405 — 1,049 Depletion and depreciation 9,641 6,280 4,541 421 764 — 21,647 Derecognition of leased assets — — — — (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 Disposals — — (5) — — — (5) Depletion and depreciation 13,844 9,610 6,789 563 1,115 — 31,921 Derecognition of leased assets — — — — (52) — (52) At December 31, 2023 $ 23,485 $ 15,896 $ 11,675 $ 1,268 $ 2,010 $ — $ 54,334 Net book value At December 31, 2022 $ 106,112 $ 65,722 $ 47,454 $ 1,915 $ 3,213 $ — $ 224,416 At December 31, 2023 $ 104,414 $ 55,326 $ 42,377 $ 2,182 $ 2,539 $ 4,881 $ 211,719 |
EXPLORATION AND EVALUATION PROP
EXPLORATION AND EVALUATION PROPERTIES | 12 Months Ended |
Dec. 31, 2023 | |
EXPLORATION AND EVALUATION PROPERTIES | |
EXPLORATION AND EVALUATION PROPERTIES | 11. EXPLORATION AND EVALUATION PROPERTIES Our 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). South Railroad Cerro Quema and Lewis Monitor Gold Total At January 1, 2022 $ 82,429 $ — $ 314 $ 82,743 Acquired during 2022 — 160,000 — 160,000 At January 1, 2023 $ 82,429 $ 160,000 $ 314 $ 242,743 Impairments (72,429) — — (72,429) Derecognition — — (314) (314) At December 31, 2023 $ 10,000 $ 160,000 $ — $ 170,000 (a) On November 3, 2023, the National Assembly of Panama passed Law 407 that included a moratorium on the granting, renewal, or extension of concessions for the exploration, extraction, or exploitation of metal mining in Panama. On November 27, 2023, by Resolution 95, 96, and 97, the Panamanian Ministry of Commerce and Industry (“MICI”) formally rejected the Company’s requests for extension for the three mining concessions for the extraction of metallic minerals Class IV (gold and silver) comprising the Cerro Quema Project, declared the concessions cancelled and declared the area comprising the concessions to be a reserve area. On December 15, 2023, MICI notified the Company of the November 27, 2023, resolutions by means of an edict no. 021-2023 ( notificación por edicto Our estimate of FVLCD is classified as Level 3 in the fair value hierarchy as the inputs used are not based on observable market data. (i) In evaluating the facts, circumstances, and the significant uncertainties associated with mining in Panama, we did not include any estimated future cash flows from activities involving the exploration, extraction, or exploitation of metal mining, since these activities were legally prohibited as at December 31, 2023 and at the date of these financial statements. The recoverable amount of the Cerro Quema cash-generating unit of $10.0 million was determined based on an estimated FVLCD. This estimate was determined by an independent valuator. The valuation considered current commercial demand in the real estate market, recent transactions within the sector and neighboring areas, and the property’s physical attributes, including its location, condition, topography, and accessibility. (ii) Changes in market conditions could affect the commercial demand in the real estate market that could result in a materially different FVLCD. In the event that there is a change in the facts and circumstances surrounding the moratorium on concessions and the status of Cerro Quema’s mineral concessions, an assessment will be performed to determine whether there are any indications that the accounting impairment may no longer exist or may have changed. If any such indication exists, we will estimate the recoverable amount of the Cerro Quema asset at that time, which may lead to either a further impairment or a reversal of part or all of the impairment loss that had been recognized to that point. The accounting impairment has been recorded without attributing any specific value to any legal remedies that may be obtained through any arbitration proceedings or otherwise. There can be no assurance that any such legal remedies will be successful. (b) In December 2023, the Company elected to discontinue its earn-in agreements at the Monitor Gold Project. Accordingly, we derecognized $0.3 million which had been capitalized in previous years in respect of this project. |
TRADE PAYABLES AND ACCRUED LIAB
TRADE PAYABLES AND ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2023 | |
TRADE PAYABLES AND ACCRUED LIABILITIES | |
TRADE PAYABLES AND ACCRUED LIABILITIES | 12. December 31, December 31, 2023 2022 Trade payables $ 5,739 $ 6,707 Royalties payable (note 4(b)) 2,466 2,119 Goods or services received awaiting vendor invoices 4,054 3,139 Payroll related 6,532 3,380 Current portion of lease obligations (note 14) 915 846 Accrued interest payable (notes 13(a) and 13(b)) 59 1,660 RSUs expected to be cash settled (note 18(b)) — 352 Other 891 1,472 $ 20,656 $ 19,675 |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2023 | |
DEBT | |
DEBT | 13. Credit Facility Revolving Facility Fresnillo obligation Total note 13(a) note 13(b) note 13(c) At December 31, 2023 Current $ — $ — $ — $ — Non-current — 88,350 — 88,350 Total $ — $ 88,350 $ — $ 88,350 At December 31, 2022 Current $ 22,200 $ — $ 22,800 $ 45,000 Non-current 100,795 — — 100,795 Total $ 122,995 $ — $ 22,800 $ 145,795 (a) CREDIT FACILITY In April 2022, the Company entered into a credit facility (the “Credit Facility”) consisting of a $100 million term facility and a $50 million revolving facility through a syndicate of lenders. The Credit Facility consisted of two parts, namely (1) a $100 million term facility with a five-year term, repayable in 18 equal quarterly instalments, and (2) a $50 million revolving facility. The revolving portion of the Credit Facility had a three-year term. The Company used a portion of the proceeds of the Credit Facility to repay the Camino Rojo project loan in full. The remaining Camino Rojo project loan unamortized transaction costs of $10.7 million and the early repayment premium of $2.5 million were expensed. In August 2023, the term facility was extinguished in its entirety and the amounts due thereunder were transferred to a new $150 million revolving facility (the “Revolving Facility”) (note 13(b)). As a result of this change in the Company’s debt, we wrote off $1.1 million of unamortized transaction costs of the Credit Facility and expensed $0.5 million in additional costs and fees. Year ended December 31 2023 2022 At January 1 $ 122,995 $ — Advances received during the year — 130,000 Transaction costs paid, accreted over the life — (1,866) Interest expensed during the year (note 7(a)) 6,030 4,903 Accretion during the year (note 7(b)) 369 387 Interest paid during the year (6,030) (4,879) Principal repayments during the year (11,100) (5,550) Converted from Credit Facility to Revolving Facility (note (b)) (113,350) — Unamortized transaction costs expensed upon conversion to Revolving Facility 1,086 — At December 31 $ — $ 122,995 Current $ — $ 22,200 Non-current — 100,795 At December 31 $ — $ 122,995 (b) REVOLVING FACILITY Year ended December 31 2023 2022 At January 1 $ — $ — Converted from Credit Facility to Revolving Facility (note (a)) 113,350 — Interest expensed during the year (note 7(a)) 2,736 — Interest paid during the year (2,736) — Principal repayments during the year (25,000) — At December 31 $ 88,350 $ — Current $ — $ — Non-current 88,350 — At December 31 $ 88,350 $ — The Revolving Facility has a four-year term maturing on August 28, 2027, with an option to increase this facility to $200 million, subject to certain conditions. The applicable interest rate for the Revolving Facility is based on the term Secured Overnight Financing Rate (“SOFR”) plus an applicable margin ranging from 2.50% to 3.75% based on the Company’s leverage ratio at the end of each fiscal quarter. The average interest rate paid on the Revolving Facility during 2023 was 7.9% per annum (2022 – not applicable). A standby fee is payable on the undrawn portion of the Revolving Facility. The standby fee is charged at 0.56% to 0.84% depending on the leverage ratio. At December 31, 2023, the undrawn amount was $61.7 million. We may prepay all or any portion of the amounts owed under the Revolving Facility without penalty. The Revolving Facility is secured by the Company’s present and future assets, property and all proceeds thereof, other than present and future assets owned by Minera Cerro Quema which is excluded from the collateral. The Company is prohibited from declaring, paying or setting aside for payment any dividends unless certain financial covenants and ratios are met. The Revolving Facility includes covenants customary for a facility of this nature, including compliance with customary restrictive covenants, and the following financial covenants all as defined in the related agreements: ● maintaining a leverage ratio at less than or equal to 3.50 , ● an interest service coverage ratio at greater than or equal to 4 , ● a tangible net worth greater than or equal to $278.6 million, and ● minimum liquidity in an amount greater than or equal to $15 million. As at December 31, 2023, the Company was in compliance with all covenants. (c) FRESNILLO OBLIGATION Pursuant to the terms of the Layback Agreement, we agreed to pay Fresnillo total cash consideration of $62.8 million in three payments as follows: (i) $25.0 million upon closing of the transaction; (ii) $15.0 million on December 1, 2022; and (iii) $22.8 million on December 1, 2023. Each of these payments was made, and at December 31, 2023 no amounts were outstanding under this obligation (December 31, 2022 – $22.8 million). The amounts payable bore interest at 5% per annum, payable quarterly. To March 31, 2022, we capitalized the interest on this loan to “Mineral properties”. 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 December 31 2023 2022 At January 1 $ 22,800 $ 37,800 Interest capitalized during the year — 473 Interest expensed during the year (note 7(a)) 1,064 1,383 Interest paid during the year (1,064) (1,856) Principal repayments during the year (22,800) (15,000) At December 31 $ — $ 22,800 Current $ — $ 22,800 Non-current — — At December 31 $ — $ 22,800 |
LEASE OBLIGATIONS
LEASE OBLIGATIONS | 12 Months Ended |
Dec. 31, 2023 | |
LEASE OBLIGATIONS | |
LEASE OBLIGATIONS | 14. 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 December 31 2023 2022 Beginning of year $ 3,173 $ 1,401 Additions 484 2,300 Interest expense (note 7(a)) 156 87 Lease payments (1,125) (661) Due to changes in exchange rates 220 46 End of year $ 2,908 $ 3,173 Current (note 12) $ 915 $ 846 Non-current 1,993 2,327 $ 2,908 $ 3,173 (b) LEASE EXPENSES RECOGNIZED Year ended December 31 2023 2022 Interest on lease liabilities $ 156 $ 87 Variable lease payments not included in the measurement of lease liabilities 12,905 15,586 Expenses relating to short-term leases 241 168 Expenses relating to leases of low-value assets, excluding short-term leases 79 108 $ 13,381 $ 15,949 |
SITE CLOSURE PROVISIONS
SITE CLOSURE PROVISIONS | 12 Months Ended |
Dec. 31, 2023 | |
SITE CLOSURE PROVISIONS | |
SITE CLOSURE PROVISIONS | 15. SITE CLOSURE PROVISIONS Nevada Cerro Quema Camino Rojo projects Project Total At December 31, 2021 $ 5,117 $ — $ 343 $ 5,460 Acquisition of Gold Standard — 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 year (88) — — (88) Accretion during the year (note 7(b)) 494 14 — 508 At December 31, 2022 6,301 1,617 343 8,261 Changes in cost estimates (1,996) 463 157 (1,376) Accretion during the year (note 7(b)) 521 18 — 539 At December 31, 2023 $ 4,826 $ 2,098 $ 500 $ 7,424 December 31, 2023 December 31, 2022 Cerro Cerro Nevada Quema Nevada Quema Camino Rojo projects Project Camino Rojo projects Project Estimated settlement dates 2033 to 2047 2034 2033 to 2047 2034 Undiscounted risk-adjusted cash flows $ 9,765 $ 2,336 $ 500 $ 8,644 $ 1,724 $ 343 Inflation rate 3.7 % 2.6 % — 7.0 % 2.7 % — Discount rate 9.8 % 3.6 % — 9.6 % 3.2 % — |
SHARE CAPITAL
SHARE CAPITAL | 12 Months Ended |
Dec. 31, 2023 | |
SHARE CAPITAL | |
SHARE CAPITAL | 16. (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. (b) ISSUED SHARE CAPITAL On May 11, 2023, pursuant to the Investor Rights Agreement between Agnico Eagle Mines Limited (“Agnico Eagle”) and the Company, Agnico Eagle partially exercised its top-up right and subscribed for 3,987,241 common shares of the Company at a price of C$6.27 per common share, for proceeds of C$25,000,000 ($18,551,000). The Company incurred transaction costs of C$156,000 ($117,000). (c) WARRANTS The following summarizes information about the warrants outstanding during the year. Exercise December 31, December 31, Expiry date price 2022 Exercised Expired 2023 December 18, 2026 C$ 3.00 29,545,000 (1,291,800) — 28,253,200 Weighted average exercise price C$ 3.00 C$ 3.00 C$ — C$ 3.00 |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 12 Months Ended |
Dec. 31, 2023 | |
EARNINGS (LOSS) PER SHARE | |
EARNINGS (LOSS) PER SHARE | 17. Earnings (loss) per share has been calculated using the weighted average number of common shares outstanding for the years ended December 31, 2023 and 2022 as follows: (a) Year ended December 31 2023 2022 Income (loss) for the year $ (27,010) $ 45,770 Weighted average number of common shares (thousands) 311,482 272,202 Basic earnings (loss) per share $ (0.09) $ 0.17 (b) Year ended December 31 2023 2022 Income (loss) for the year $ (27,010) $ 45,770 Weighted average number of common shares (thousands) 311,482 272,202 Dilutive potential ordinary shares Warrants — 14,526 Options — 4,544 RSUs — 392 DSUs — 652 Bonus shares — 500 Weighted average number of ordinary shares 311,482 292,816 Diluted earnings (loss) per share $ (0.09) $ 0.16 Potential ordinary shares arising from warrants (13,026,000), stock options (2,383,000), RSUs (375,000), DSUs (648,000) and 500,000 bonus shares are not included in the calculation of diluted loss per share for the year ended December 31, 2023 because their effect would be anti-dilutive. |
SHARE-BASED PAYMENTS
SHARE-BASED PAYMENTS | 12 Months Ended |
Dec. 31, 2023 | |
SHARE-BASED PAYMENTS | |
SHARE-BASED PAYMENTS | 18. The Company has five different forms of share-based payments for eligible recipients – stock options, restricted share units (“RSUs”), deferred share units (“DSUs”), performance share units ("PSUs"), and bonus shares. The bonus shares have fully vested but have not yet been issued. Year ended December 31 Share-based payments expense 2023 2022 Stock options (note 18(a)) $ 1,342 $ 1,396 Restricted share units (note 18(b)) 1,135 743 Deferred share units (note 18(c)) 623 308 Performance share units (note 18(d)) 121 — Share based payments expense $ 3,221 $ 2,447 (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 Stock options of Gold Standard Ventures Inc. (“Gold Standard”) that were outstanding at the acquisition date of August 12, 2022 were exchanged for options to acquire common shares of Orla (“Replacement Options”), resulting in the issuance of 1,758,334 Replacement Options, which are exercisable until their original expiry dates. For those individuals who did not continue on with Orla, the expiry date is capped at August 12, 2024. Year ended December 31 2023 2022 Weighted Weighted average average Stock options outstanding Number exercise price Number exercise price Outstanding, January 1 9,178,889 C$ 3.71 9,900,874 C$ 1.86 Replacement options — — 1,758,334 8.43 Granted 457,260 6.57 1,278,264 5.56 Exercised (3,866,208) 1.71 (3,674,769) 1.34 Expired, forfeited or cancelled (246,644) 13.14 (83,814) 16.81 Outstanding, December 31 5,523,297 C$ 4.93 9,178,889 C$ 3.71 Vested, December 31 4,308,120 C$ 4.64 7,701,986 C$ 3.38 The stock options granted during the year ended December 31, 2023 had a grant date fair value of C$1.4 million ($1.0 million) using the Black Scholes option pricing model with the following weighted average assumptions: ● Share prices at grant dates - C $6.58 and C$ 6.07 , expected volatility 50 %, expected life – 5 years, risk free interest rate 3.0 % and expected dividends – nil . The stock options granted during the year ended December 31, 2022 had a grant date fair value of C$4.1 million ($3.1 million) using the Black Scholes option pricing model with the following weighted average assumptions: ● Share price at grant date ranging from C $3.71 to C $5.98 , expected volatility 46% , expected life – 3 years, risk free interest rate 2.9 % and expected dividends – nil . The stock options outstanding at December 31, 2023, were as follows: Weighted average remaining Range of exercise Number Weighted average remaining contractual life life (years) prices (C$) outstanding Less than 3 months 0.2 $ 1.06 476,168 0.1 $ 14.59 112,611 4 to 12 months 0.6 $ 1.65 20,000 0.6 $ 4.78 311,331 0.6 $ 6.12 – $ 7.78 705,210 0.6 $ 8.81 140,114 13 to 24 months 1.3 $ 2.21 – $ 3.82 1,118,792 1.7 $ 5.80 50,000 1.7 $ 6.03 – $ 7.63 205,964 1.2 $ 8.55 – $ 8.81 22,086 25 to 36 months 2.3 $ 4.04 – $ 4.80 637,674 2.1 $ 7.05 – $ 7.43 50,388 More than 3 years 3.5 $ 3.71 – $ 3.88 76,580 3.4 $ 5.06 – $ 5.98 1,139,119 4.2 $ 6.07 – $ 6.58 457,260 1.9 $ 1.06 – $ 14.59 5,523,297 (b) RESTRICTED SHARE UNITS Restricted Share Units (“RSU’s) awarded by the Company typically vest one-third two three Year ended December 31 Number of RSUs outstanding: 2023 2022 Outstanding, January 1 443,267 707,840 Awarded 295,429 172,301 Vested and settled (152,203) (402,430) Forfeitures during the year (6,274) (34,444) Outstanding, December 31 580,219 443,267 Number vesting in the year Number of RSUs outstanding: Total 2022 2023 2024 2025 2026 Outstanding, December 31, 2022 443,267 — 262,738 126,812 53,717 — Outstanding, December 31, 2023 580,219 N/A — 333,720 150,102 96,397 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, 2023, the Company elected to settle 94,063 RSUs in cash for $0.5 million (2022 — 365,935 RSUs cash-settled for $1.7 million). As at December 31, 2023, all RSU’s outstanding were accounted for as equity-settled (December 31, 2022 – 349,204 were accounted for as equity-settled and 94,063 were accounted for as cash settled). (c) DEFERRED SHARE UNITS Deferred Share Units ( “ ” ’ Year ended December 31 Number of DSUs outstanding: 2023 2022 Outstanding, January 1 559,725 707,028 Awarded and vested immediately 142,202 69,290 Settled during the year — (216,593) Outstanding, December 31 701,927 559,725 Vested, December 31 701,927 559,725 During the year ended December 31, 2023, there were no settlements of DSUs (2022 - the Company elected to settle 104,759 DSUs in cash for $330,000). No further cash settlements are expected. (d) In March 2023, the Board of Directors approved a performance share unit ( “ ” ’ “ ” ’ We recognize share-based compensation expense related to these PSUs over the vesting period. We adjust the amount recognized at each reporting period to reflect changes in quoted market values of the Company and the peer group, the lapsed portion of the vesting period, the number of PSUs expected to vest, and the expected performance percentage. On March 27, 2023, the Company issued a total of 198,737 PSUs with an estimated aggregate grant date fair value of $1.3 million. Number of PSUs outstanding: Year ended December 31 2023 2022 Outstanding, January 1 — — Granted during the year 198,737 — Outstanding, December 31 198,737 — Vested, December 31 — — (e) 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”). Although the bonus shares have vested, they will become issuable (1) when the non‐executive Chairman ceases to act as a director of the Company, or (2) upon a change of control of the Company. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2023 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | 19. 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: Year ended December 31 2023 2022 Salaries and short term incentives $ 3,439 $ 3,871 Directors’ fees 366 291 Share based payments 1,895 1,987 $ 5,700 $ 6,149 (b) TRANSACTIONS The Company had no other material transactions with related parties other than key management personnel during the years ended December 31, 2023, and 2022. (c) OUTSTANDING BALANCES AT THE REPORTING DATE At December 31, 2023, estimated accrued short term incentive compensation totaled $1.4 million and is included in accrued liabilities (December 31, 2022 – $1.1 million). |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 12 Months Ended |
Dec. 31, 2023 | |
SUPPLEMENTAL CASH FLOW INFORMATION | |
SUPPLEMENTAL CASH FLOW INFORMATION | 20. (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 Year ended December 31 2023 2022 Accounts receivable and prepaid expenses (294) (47) Inventory (5,635) (9,177) Valued added taxes recoverable (574) (8,044) Trade payables and accrued liabilities 2,904 1,487 Changes in non-cash working capital (3,599) (15,781) (c) Year ended December 31 2023 2022 Repayment of the Newmont loan — (10,836) Repayment of the Camino Rojo project loan — (127,500) Proceeds from Credit Facility, net of transaction costs (note 13(a)) — 128,134 Principal repayments of Credit Facility (note 13(a)) (11,100) (5,550) Extinguishment of the Credit Facility (note 13(a)) (113,350) — Proceeds from the Revolving Facility, net of transaction costs (note 13(b)) 113,350 — Principal repayments of the Revolving Facility (note 13(b)) (25,000) — Revolving facility cash transaction costs (note 13(a)) (459) — Cash flow effect of changes In Project Loan, Credit Facility, and Revolving Facility (36,559) (15,752) (d) Year ended December 31 2023 2022 Financing activities Stock options exercised, credited to share capital with an offset to reserves $ 2,036 $ 3,033 Warrants exercised, credited to share capital with an offset to reserves 345 5,143 Common shares issued on maturity of RSUs, credited to share capital with an offset to reserves 228 541 Common shares issued on maturity of DSUs, credited to share capital with an offset to reserves — 324 Investing activities Common shares issued pursuant to the acquisition of Gold Standard, credited to share capital with an offset to the assets acquired and liabilities assumed — 149,363 Replacement options issued pursuant to the acquisition of Gold Standard, credited to reserves with an offset to the assets acquired and liabilities assumed — 1,647 Initial recognition of right of use assets, with an offset to lease obligation 484 2,300 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2023 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | 21. (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 Camino Rojo Mine, (2) the Cerro Quema 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. (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, 2023 Revenue (note 3) $ 233,451 $ — $ — $ 192 $ 233,643 Cost of sales (92,047) — — (69) (92,116) Earnings from mining operations 141,404 — — 123 141,527 Exploration and evaluation expenses (note 5) (8,740) (6,001) (19,377) (498) (34,616) General and administrative expenses (note 6) — — — (13,408) (13,408) Interest income 4,134 — — 1,253 5,387 Depreciation (66) (40) (138) (260) (504) Share based payments (note 18) (170) (86) (317) (2,648) (3,221) Interest and accretion expense (1,648) — (795) (9,395) (11,838) Loss on extinguishment of Credit Facility — — — (1,547) (1,547) Foreign exchange and other gain (loss) (704) — — (739) (1,443) Impairment or derecognition of exploration properties — (72,429) (314) — (72,743) Income taxes (33,002) — — (1,602) (34,604) Income (loss) for the year $ 101,208 $ (78,556) $ (20,941) $ (28,721) $ (27,010) Mexico Panama USA Corporate Total Year ended December 31, 2022 Revenue (note 3) $ 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 5) (3,765) (7,176) (7,616) (382) (18,939) General and administrative expenses (note 6) — — — (10,913) (10,913) Interest income 1,844 — — 323 2,167 Depreciation (23) (15) (45) (194) (277) Share based payments (note 18) (37) (70) — (2,340) (2,447) Interest and accretion expense (2,315) — (35) (6,540) (8,890) Loss on extinguishment of Project Loan — — — (13,219) (13,219) Foreign exchange and other gain (loss) (778) — 76 3,757 3,055 Income taxes (29,478) — — (3,150) (32,628) Income (loss) for the year $ 93,237 $ (7,261) $ (7,620) $ (32,586) $ 45,770 (ii) At December 31, 2023 Mexico Panama Nevada Corporate Total Property, plant and equipment $ 210,339 $ — $ 525 $ 855 $ 211,719 Exploration and evaluation properties — 10,000 160,000 — 170,000 Total assets 336,374 10,673 161,137 27,594 535,778 At December 31, 2022 Mexico Panama Nevada Corporate Total 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 |
CAPITAL MANAGEMENT
CAPITAL MANAGEMENT | 12 Months Ended |
Dec. 31, 2023 | |
CAPITAL MANAGEMENT | |
CAPITAL MANAGEMENT | 22. (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. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2023 | |
FINANCIAL INSTRUMENTS | |
FINANCIAL INSTRUMENTS | 23. (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, trade and other receivables, restricted cash, trade payables and accrued liabilities approximates the fair value due to the short-term nature of the instruments. The fair values of the Credit Facility, the Revolving Facility, and the Fresnillo obligation are 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 Revolving Facility at December 31, 2023 was estimated at $88.4 million using a discount rate of 7.9%. At December 31, 2023, 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 $ 96,632 $ 96,632 $ — $ — $ — $ 96,632 Accounts receivable Amortized cost 316 18 — — 298 316 Restricted cash Amortized cost 1,011 1,011 — — — 1,011 $ 97,959 $ 97,661 $ — $ — $ 298 $ 97,959 Financial liabilities Trade and other payables Amortized cost $ 8,219 $ — $ — $ — $ 8,219 $ 8,219 Accrued liabilities Amortized cost 9,541 122 — — 9,419 9,541 Lease obligation Amortized cost 2,908 — 2,908 — — 2,908 Revolving Facility Amortized cost 88,350 — — 88,350 — 88,350 $ 109,018 $ 122 $ 2,908 $ 88,350 $ 17,638 $ 109,018 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 We determine whether transfers have occurred between levels in the hierarchy by re-assessing categorization at the end of each 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 material exposure to credit risk is limited to its cash. Our cash is held at large financial institutions in interest bearing accounts. We believe that the credit risk related to our cash is low. The Company’s maximum exposure to credit risk is the carrying value of cash. (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, 2023, 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 $ 8,219 $ — $ — $ — $ 8,219 Accrued liabilities 9,541 — — — 9,541 Lease obligations 276 736 1,210 921 3,143 Revolving Facility 1,211 5,974 14,253 93,017 114,455 $ 19,247 $ 6,710 $ 15,463 $ 93,938 $ 135,358 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 obligations 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 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 trade receivables may be affected by changes in commodity prices. As at December 31, 2023, there were no derivative financial instruments or trade receivables subject to provisional 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 $23.4 million (2022— $19.3 million). 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, 2023: Canadian dollars US dollars Mexican pesos (thousands) (thousands) (thousands) Cash $ 27,168 $ 75,645 $ 7,523 Accounts receivable 68 25 4,993 Restricted funds 70 958 - Trade payables (487) (5,632) (55,827) Accrued liabilities (3,431) (2,636) (70,764) Lease obligations (1,041) (486) (27,607) Revolving Facility — (88,350) — Total foreign currency 22,347 (20,476) (141,682) Exchange rate 1.3226 1.0000 16.8935 Equivalent US dollars $ 16,896 $ (20,476) $ (8,387) 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) Based on the above net exposures as at December 31, 2023, and assuming that all other variables remain constant: ● a 10% appreciation of the US dollar against the Canadian dollar would increase profit by $3.8 million (2022 – increase profit by $4.5 million) and ● a 10% appreciation of the US dollar against the Mexican peso would increase profit by $0.8 million (2022 – increase profit by $0.6 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. The Fresnillo obligation did not fluctuate as it had a fixed interest rate of 5.00%. A 100 basis points increase in interest rates would result in a decrease of approximately $0.1 million (2022 - decrease income by $0.4 million) to the Company’s income for the year ended December 31, 2023. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2023 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 24. (a) COMMITMENTS The Company has issued purchase orders for construction, equipment purchases, materials and supplies, and other services at Camino Rojo. At December 31, 2023, these outstanding purchase orders and contracts totaled approximately $3.7 million (December 31, 2022 – $2.0 million), which we expect will be filled within the next 12 months. The Company is committed to making severance payments totaling approximately $7.4 million (December 31, 2022 – $3.7 million) to certain officers and management in the event of a change in control. As the likelihood of these events occurring is not determinable, this amount is not reflected in these consolidated financial statements. (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. (c) An ecological tax implemented by the state legislature of Zacatecas could have a significant impact on the economics of the Camino Rojo Project. This tax is applied to cubic metres of material extracted during mining, square metres of material impacted by dangerous substances, tonnes of carbon dioxide produced during mining processes, and tonnes of waste stored in landfills. The Company has received assessments in respect of this tax; however, the Company’s view is that the sections of the law pursuant to which these assessments have been issued do not apply to the Company at this time and, accordingly, we have filed the appropriate appeals. We expect this matter will be resolved by judicial process. As the outcome of these events is not determinable, no amounts have been accrued in respect of this tax. 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 effect on our consolidated financial position, results of operations or cash flows. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2023 | |
INCOME TAXES | |
INCOME TAXES | 25. (a) TAX AMOUNTS RECOGNIZED IN PROFIT OR LOSS Tax expense consists of (i) current income tax on taxable income, (ii) 7.5% special mining duty (“SMD”) on income subject to SMD, and (iii) withholding taxes attributable to interest charged on intercompany loans to the Mexican operating company, as well as (iv) deferred income tax, and (v) deferred special mining duty. Year ended December 31 2023 2022 Current income tax expense $ 22,354 $ 22,512 Mexican 7.5% Special Mining Duty expense 8,068 9,371 Withholding tax expense 1,601 3,150 Deferred income tax expense (recovery) 2,517 (2,698) Deferred Mexican 7.5% Special Mining Duty expense 64 293 Tax expense $ 34,604 $ 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: Year ended December 31 2023 2022 Income (loss) before tax $ 7,594 $ 78,398 Statutory income tax rate 26.8 % 26.8 % Expected income tax $ 2,036 $ 21,036 Differences between Canadian and foreign tax rates 6,442 4,117 Items not deductible for tax purposes 76 4,508 Share based compensation 674 107 Change in unrecognized deductible temporary differences 3,964 (10,928) True ups 4,263 1,901 Effect of changes in foreign exchange rates (7,806) (2,371) Inflationary adjustment and other (1,175) 1,532 Mexican Special Mining Duty 6,422 9,576 Withholding tax expense 1,601 3,150 Tax impact of impairment of exploration property 18,107 — Total income taxes 34,604 32,628 Effective tax rate 456 % 42 % The effective tax rate for the current year is unusually high as a result of the accounting impairment of the Cerro Quema Project (note 11(a)). In 2023, the statutory income tax rate applicable to the Canadian parent entity was 26.8% (2022 – 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, December 31, 2023 2022 Mineral properties and exploration expenditures $ 95,616 $ 30,467 Equipment 1,338 1,251 Site closure provisions 995 356 Long term debt — 6,570 Financing cost 2,861 3,452 Non-capital losses 64,700 53,436 Other 717 154 Unrecognized deductible temporary differences $ 166,227 $ 95,686 (d) RECOGNIZED DEFERRED TAX ASSETS AND LIABILITIES Recognized deferred tax assets and liabilities are comprised of the following: December 31, December 31, 2023 2022 Property, plant and equipment $ (3,722) $ (216) Inventory (3,393) — Accrued liabilities 1,975 — Site closure provisions 1,810 2,363 Long term debt (317) — Non-capital losses 504 1,397 Intercompany debt (442) (1,619) Special Mining Duty 2,972 — Other 420 480 Recognized deferred tax assets (liabilities) $ (193) $ 2,405 Significant judgment is required in determining the deferred tax assets 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 the 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. (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 $109 million(December 31, 2022 - $32 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 2023 2022 Canada 2027 to 2043 $ 62,776 $ 61,214 Panama 2024 to 2028 866 736 United States indefinite 2,794 27,086 |
EVENTS AFTER THE REPORTING PERI
EVENTS AFTER THE REPORTING PERIOD | 12 Months Ended |
Dec. 31, 2023 | |
EVENTS AFTER THE REPORTING PERIOD | |
EVENTS AFTER THE REPORTING PERIOD | 26. (a) On February 25, 2024, the Company and Contact Gold Corp. ( “ ” “ ” “ ” “ ” Under the terms of the Arrangement Agreement, each holder of Contact Shares will receive, for each Contact Share held, 0.0063 of an Orla common share. The Arrangement Agreement includes certain customary provisions, including non-solicitation provisions and the payment of a break fee payable in certain circumstances, as well as certain representations, covenants and conditions which are customary for a transaction of this nature. The Transaction will be effected by way of a court-approved plan of arrangement under the Business Corporations Act Consequently, we expect to issue approximately 2.2 million common shares of the Company in respect of Contact Shares under the Transaction. As a result of this transaction, we expect that our total assets and total equity will increase by approximately $8 million and will not have a material effect on the earnings or cashflows of the Company during 2024. |
MATERIAL ACCOUNTING POLICIES
MATERIAL ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2023 | |
MATERIAL ACCOUNTING POLICIES | |
MATERIAL ACCOUNTING POLICIES | 27. 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 28. (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 27(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 (US) Inc., and Madison Enterprises (Nevada) Inc. (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) 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. (d) 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. 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. (e) 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. (f) 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. (g) 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 (h) 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. (i) 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. (j) 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. (k) 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. (l) Share based payments (i) Stock options, restricted share units ( “ ” “ ” “ ” The Company grants stock options, and awards RSUs, PSUs 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, PSUs 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. The fair value of PSUs is determined using a Monte Carlo valuation model at the date of grant. 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. (m) 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 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. Amendment to IAS 12, Deferred Tax Related to Assets and Liabilities Arising from a Single Transaction. We applied this amendment for the first time in 2023. This amendment narrows the scope of the initial recognition exemption to exclude transactions that give rise to equal and offsetting temporary differences, such as leases and decommissioning liabilities. There was no impact on the Company’s consolidated financial statements. (n) 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. (o) 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. (p) (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. A |
SIGNIFICANT ACCOUNTING JUDGEMEN
SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES | 12 Months Ended |
Dec. 31, 2023 | |
SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES | |
SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES | 28. 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) 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, 2023 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) Recoverable amount of exploration and evaluation assets Determining whether the recoverable amount of an exploration and evaluation asset is based on its fair value less costs of disposal or its value in use involves judgment. This includes assessing whether market transactions for similar assets are available and whether these transactions can be considered as basis for fair value, or whether the value in use calculation, which involves estimating future cash flows, is more appropriate. Included with this are judgements about external factors, including changes in the legal, environmental, and political context in which the mine or potential mine operates. In valuing land, estimates include per-hectare valuation rates based on permitted use, market conditions, topography, and other factors. (iv) 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. (v) 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. |
MATERIAL ACCOUNTING POLICIES (P
MATERIAL ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
MATERIAL 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 27(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 (US) Inc., and Madison Enterprises (Nevada) Inc. |
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. |
Inventories | (c) 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 | (d) 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. 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. |
Producing mineral properties | (e) 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 | (f) 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. |
Property, plant and equipment | (g) 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 |
Leases | (h) 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 | (i) 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. |
Revenue | (j) 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 | (k) 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 | (l) Share based payments (i) Stock options, restricted share units ( “ ” “ ” “ ” The Company grants stock options, and awards RSUs, PSUs 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, PSUs 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. The fair value of PSUs is determined using a Monte Carlo valuation model at the date of grant. 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 | (m) 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 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. Amendment to IAS 12, Deferred Tax Related to Assets and Liabilities Arising from a Single Transaction. We applied this amendment for the first time in 2023. This amendment narrows the scope of the initial recognition exemption to exclude transactions that give rise to equal and offsetting temporary differences, such as leases and decommissioning liabilities. There was no impact on the Company’s consolidated financial statements. |
Earnings (loss) per share | (n) 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 | (o) 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 | (p) (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 | (q) Non-current Liabilities with Covenants – Amendments to IAS 1, and Classification of Liabilities as Current or Non-current – Amendments to IAS 1 Under these amendments to IAS 1 «Presentation of Financial Statements» the classification of certain liabilities as current or non-current may change. Reporting entities may need to provide new disclosures for liabilities subject to covenants. The amendments will apply from January 1, 2024. We are currently assessing the impact of these amendments. Lease Liability in a Sale and Leaseback Amendments to IFRS 16 These amendments to IFRS 16 «Leases» impact how a seller-lessee accounts for variable lease payments that arise in a sale-and-leaseback transaction. The amendments introduce a new accounting model for variable payments and will require seller-lessees to reassess and potentially restate sale-and-leaseback transactions entered into since 2019. The amendments are effective for annual reporting periods beginning on or after January 1, 2024, with earlier application permitted. We do not expect these amendments to have any material impact on our current or previously reported financial statements because we have not had transactions to which these amendments apply. Supplier Finance Arrangements Amendments to IAS 7 and IFRS 7 These amendments introduce additional disclosure requirements for reporting entities that enter into supplier finance arrangements. The amendments are effective for periods beginning on or after January 1, 2024, with early application permitted. We do not expect these amendments to have any material impact on our current or previously reported financial statements because we have not had transactions to which these amendments apply. Lack of Exchangeability Amendments to IAS 21 These amendments clarify (a) when a currency is exchangeable into another currency; and (b) how a company estimates a spot rate when a currency lacks exchangeability. The amendments are applicable for annual reporting periods beginning on or after January 1, 2025. We do not expect these amendments to have any material impact on our current or previously reported financial statements because we do not have and do not expect to have any currency transactions to which these amendments apply. |
BASIS OF PREPARATION (Tables)
BASIS OF PREPARATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
BASIS OF PREPARATION | |
Schedule of basis of consolidation | Ownership at December 31 Name Principal activity 2023 2022 Location Minera Camino Rojo SA de CV Production 100 % 100 % Mexico Minera Cerro Quema SA Exploration 100 % 100 % Panama Gold Standard Ventures (US) Inc. Exploration 100 % 100 % USA Madison Enterprises Inc. Exploration 100 % 100 % USA |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
REVENUE | |
Schedule of revenues | Year ended December 31 2023 2022 Gold $ 230,955 $ 192,394 Silver 2,688 836 Revenue $ 233,643 $ 193,230 Customer A $ 54,707 $ 129,866 Customer B 70,072 47,937 Customer C 97,334 — Others 11,530 15,427 Revenue $ 233,643 $ 193,230 |
COST OF SALES (Tables)
COST OF SALES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
COST OF SALES | |
Schedule of components of operating costs | Year ended December 31 2023 2022 Mining and processing costs $ 56,889 $ 44,538 Refining and transportation costs 783 1,059 $ 57,672 $ 45,597 |
Schedule of royalties | Year ended December 31 2023 2022 Camino Rojo Oxide 2% NSR royalty $ 4,628 $ 3,818 Mexican 0.5% Extraordinary Mining Duty 1,167 1,001 $ 5,795 $ 4,819 |
EXPLORATION AND EVALUATION EX_2
EXPLORATION AND EVALUATION EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
EXPLORATION AND EVALUATION EXPENSES | |
Schedule of exploration and evaluation properties | Year ended December 31 2023 2022 Camino Rojo $ 8,740 $ 3,765 Nevada (South Railroad, Lewis and Monitor Gold) 19,377 7,616 Cerro Quema 6,001 7,176 Other 498 382 $ 34,616 $ 18,939 |
GENERAL AND ADMINISTRATIVE EX_2
GENERAL AND ADMINISTRATIVE EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
GENERAL AND ADMINISTRATIVE EXPENSES | |
Schedule of general and administrative expenses | Year ended December 31 2023 2022 Office and administrative $ 3,552 $ 2,921 Professional fees 2,718 2,237 Regulatory and transfer agent 451 301 Salaries and benefits 6,687 5,454 $ 13,408 $ 10,913 |
INTEREST AND ACCRETION EXPENSE
INTEREST AND ACCRETION EXPENSE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
INTEREST AND ACCRETION EXPENSE | |
Schedule of components of interest and accretion expense | Year ended December 31 2023 2022 Interest expense (note 7(a)) $ 10,254 $ 7,368 Accretion expense (note 7(b)) 1,584 1,522 Interest and accretion expense $ 11,838 $ 8,890 Year ended December 31 2023 2022 Credit Facility (note 13(a)) $ 6,030 $ 4,903 Revolving Facility (note 13(b)) 2,736 — Fresnillo obligation (note 13(c)) 1,064 1,383 Project loan — 869 Interest expense on lease liabilities (note 14) 156 87 Other 268 126 $ 10,254 $ 7,368 Year ended December 31 2023 2022 Credit Facility (note 13(a)) $ 369 $ 387 Accretion of site closure provisions (note 15) 539 508 Deferred revenue 676 — Newmont loan — 366 Project loan — 261 $ 1,584 $ 1,522 |
INVENTORY (Tables)
INVENTORY (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
INVENTORY | |
Schedule of inventories | December 31, December 31, 2023 2022 Current Stockpiled ore $ 913 $ 1,869 In-process inventory 20,509 15,961 Finished goods inventory 4,041 1,406 Materials and supplies 3,988 3,210 Inventory – current $ 29,451 $ 22,446 Long term Stockpiled low grade ore $ 5,627 $ 4,096 |
VALUE ADDED TAXES RECOVERABLE (
VALUE ADDED TAXES RECOVERABLE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
VALUE ADDED TAXES RECOVERABLE | |
Schedule of value added taxes | December 31, December 31, 2023 2022 Current portion $ 15,571 $ 8,659 Long term portion 826 5,229 $ 16,397 $ 13,888 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
PROPERTY, PLANT AND EQUIPMENT | |
Schedule of property, plant and equipment | Producing Machinery Other right mineral and Other of use Construction property Buildings equipment assets assets in progress Total Cost At January 1, 2022 $ — $ 66 $ 5,238 $ 1,261 $ 2,119 $ — $ 8,684 Additions 6,616 1,788 3,272 666 2,300 — 14,642 Transfer from 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 15) 1,155 (300) (190) — — — 665 Derecognition of leased assets — — — — (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 Additions 12,705 141 2,305 823 484 4,881 21,339 Change in site closure provision (note 15) (559) (927) (593) — — — (2,079) Disposals — — (5) — — — (5) Derecognition of leased assets — — — — (117) — (117) Due to changes in exchange rates — — — 7 22 — 29 At December 31, 2023 $ 127,899 $ 71,222 $ 54,052 $ 3,450 $ 4,549 $ 4,881 $ 266,053 Accumulated depreciation At January 1, 2022 — 6 350 288 405 — 1,049 Depletion and depreciation 9,641 6,280 4,541 421 764 — 21,647 Derecognition of leased assets — — — — (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 Disposals — — (5) — — — (5) Depletion and depreciation 13,844 9,610 6,789 563 1,115 — 31,921 Derecognition of leased assets — — — — (52) — (52) At December 31, 2023 $ 23,485 $ 15,896 $ 11,675 $ 1,268 $ 2,010 $ — $ 54,334 Net book value At December 31, 2022 $ 106,112 $ 65,722 $ 47,454 $ 1,915 $ 3,213 $ — $ 224,416 At December 31, 2023 $ 104,414 $ 55,326 $ 42,377 $ 2,182 $ 2,539 $ 4,881 $ 211,719 |
EXPLORATION AND EVALUATION PR_2
EXPLORATION AND EVALUATION PROPERTIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Mineral Properties | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Schedule of exploration and evaluation properties | South Railroad Cerro Quema and Lewis Monitor Gold Total At January 1, 2022 $ 82,429 $ — $ 314 $ 82,743 Acquired during 2022 — 160,000 — 160,000 At January 1, 2023 $ 82,429 $ 160,000 $ 314 $ 242,743 Impairments (72,429) — — (72,429) Derecognition — — (314) (314) At December 31, 2023 $ 10,000 $ 160,000 $ — $ 170,000 |
TRADE PAYABLES AND ACCRUED LI_2
TRADE PAYABLES AND ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
TRADE PAYABLES AND ACCRUED LIABILITIES | |
Schedule of trade payables and accrued liabilities | December 31, December 31, 2023 2022 Trade payables $ 5,739 $ 6,707 Royalties payable (note 4(b)) 2,466 2,119 Goods or services received awaiting vendor invoices 4,054 3,139 Payroll related 6,532 3,380 Current portion of lease obligations (note 14) 915 846 Accrued interest payable (notes 13(a) and 13(b)) 59 1,660 RSUs expected to be cash settled (note 18(b)) — 352 Other 891 1,472 $ 20,656 $ 19,675 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of detailed information about borrowings [line items] | |
Schedule of long-tem debt | Credit Facility Revolving Facility Fresnillo obligation Total note 13(a) note 13(b) note 13(c) At December 31, 2023 Current $ — $ — $ — $ — Non-current — 88,350 — 88,350 Total $ — $ 88,350 $ — $ 88,350 At December 31, 2022 Current $ 22,200 $ — $ 22,800 $ 45,000 Non-current 100,795 — — 100,795 Total $ 122,995 $ — $ 22,800 $ 145,795 |
Credit Facility | |
Disclosure of detailed information about borrowings [line items] | |
Schedule of long-tem debt | Year ended December 31 2023 2022 At January 1 $ 122,995 $ — Advances received during the year — 130,000 Transaction costs paid, accreted over the life — (1,866) Interest expensed during the year (note 7(a)) 6,030 4,903 Accretion during the year (note 7(b)) 369 387 Interest paid during the year (6,030) (4,879) Principal repayments during the year (11,100) (5,550) Converted from Credit Facility to Revolving Facility (note (b)) (113,350) — Unamortized transaction costs expensed upon conversion to Revolving Facility 1,086 — At December 31 $ — $ 122,995 Current $ — $ 22,200 Non-current — 100,795 At December 31 $ — $ 122,995 |
Revolving facility | |
Disclosure of detailed information about borrowings [line items] | |
Schedule of long-tem debt | Year ended December 31 2023 2022 At January 1 $ — $ — Converted from Credit Facility to Revolving Facility (note (a)) 113,350 — Interest expensed during the year (note 7(a)) 2,736 — Interest paid during the year (2,736) — Principal repayments during the year (25,000) — At December 31 $ 88,350 $ — Current $ — $ — Non-current 88,350 — At December 31 $ 88,350 $ — |
Fresnillo obligation | |
Disclosure of detailed information about borrowings [line items] | |
Schedule of long-tem debt | Year ended December 31 2023 2022 At January 1 $ 22,800 $ 37,800 Interest capitalized during the year — 473 Interest expensed during the year (note 7(a)) 1,064 1,383 Interest paid during the year (1,064) (1,856) Principal repayments during the year (22,800) (15,000) At December 31 $ — $ 22,800 Current $ — $ 22,800 Non-current — — At December 31 $ — $ 22,800 |
LEASE OBLIGATIONS (Tables)
LEASE OBLIGATIONS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
LEASE OBLIGATIONS | |
Schedule of lease obligations | Year ended December 31 2023 2022 Beginning of year $ 3,173 $ 1,401 Additions 484 2,300 Interest expense (note 7(a)) 156 87 Lease payments (1,125) (661) Due to changes in exchange rates 220 46 End of year $ 2,908 $ 3,173 Current (note 12) $ 915 $ 846 Non-current 1,993 2,327 $ 2,908 $ 3,173 |
Schedule of lease expenses recognized | Year ended December 31 2023 2022 Interest on lease liabilities $ 156 $ 87 Variable lease payments not included in the measurement of lease liabilities 12,905 15,586 Expenses relating to short-term leases 241 168 Expenses relating to leases of low-value assets, excluding short-term leases 79 108 $ 13,381 $ 15,949 |
SITE CLOSURE PROVISIONS (Tables
SITE CLOSURE PROVISIONS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
SITE CLOSURE PROVISIONS | |
Schedule of reconciliation of changes in site closure provisions | Nevada Cerro Quema Camino Rojo projects Project Total At December 31, 2021 $ 5,117 $ — $ 343 $ 5,460 Acquisition of Gold Standard — 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 year (88) — — (88) Accretion during the year (note 7(b)) 494 14 — 508 At December 31, 2022 6,301 1,617 343 8,261 Changes in cost estimates (1,996) 463 157 (1,376) Accretion during the year (note 7(b)) 521 18 — 539 At December 31, 2023 $ 4,826 $ 2,098 $ 500 $ 7,424 |
Schedule of inputs used for site closure provisions | December 31, 2023 December 31, 2022 Cerro Cerro Nevada Quema Nevada Quema Camino Rojo projects Project Camino Rojo projects Project Estimated settlement dates 2033 to 2047 2034 2033 to 2047 2034 Undiscounted risk-adjusted cash flows $ 9,765 $ 2,336 $ 500 $ 8,644 $ 1,724 $ 343 Inflation rate 3.7 % 2.6 % — 7.0 % 2.7 % — Discount rate 9.8 % 3.6 % — 9.6 % 3.2 % — |
SHARE CAPITAL (Tables)
SHARE CAPITAL (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
SHARE CAPITAL | |
Schedule of warrants outstanding | Exercise December 31, December 31, Expiry date price 2022 Exercised Expired 2023 December 18, 2026 C$ 3.00 29,545,000 (1,291,800) — 28,253,200 Weighted average exercise price C$ 3.00 C$ 3.00 C$ — C$ 3.00 |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
EARNINGS (LOSS) PER SHARE | |
Schedule of earnings (loss) per share calculated using the weighted average number of common shares outstanding | (a) Year ended December 31 2023 2022 Income (loss) for the year $ (27,010) $ 45,770 Weighted average number of common shares (thousands) 311,482 272,202 Basic earnings (loss) per share $ (0.09) $ 0.17 (b) Year ended December 31 2023 2022 Income (loss) for the year $ (27,010) $ 45,770 Weighted average number of common shares (thousands) 311,482 272,202 Dilutive potential ordinary shares Warrants — 14,526 Options — 4,544 RSUs — 392 DSUs — 652 Bonus shares — 500 Weighted average number of ordinary shares 311,482 292,816 Diluted earnings (loss) per share $ (0.09) $ 0.16 |
SHARE-BASED PAYMENTS (Tables)
SHARE-BASED PAYMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
SHARE-BASED PAYMENTS | |
Schedule of share-based compensation recorded during the year | Year ended December 31 Share-based payments expense 2023 2022 Stock options (note 18(a)) $ 1,342 $ 1,396 Restricted share units (note 18(b)) 1,135 743 Deferred share units (note 18(c)) 623 308 Performance share units (note 18(d)) 121 — Share based payments expense $ 3,221 $ 2,447 |
Schedule of information about share options outstanding and exercisable | The stock options outstanding at December 31, 2023, were as follows: Weighted average remaining Range of exercise Number Weighted average remaining contractual life life (years) prices (C$) outstanding Less than 3 months 0.2 $ 1.06 476,168 0.1 $ 14.59 112,611 4 to 12 months 0.6 $ 1.65 20,000 0.6 $ 4.78 311,331 0.6 $ 6.12 – $ 7.78 705,210 0.6 $ 8.81 140,114 13 to 24 months 1.3 $ 2.21 – $ 3.82 1,118,792 1.7 $ 5.80 50,000 1.7 $ 6.03 – $ 7.63 205,964 1.2 $ 8.55 – $ 8.81 22,086 25 to 36 months 2.3 $ 4.04 – $ 4.80 637,674 2.1 $ 7.05 – $ 7.43 50,388 More than 3 years 3.5 $ 3.71 – $ 3.88 76,580 3.4 $ 5.06 – $ 5.98 1,139,119 4.2 $ 6.07 – $ 6.58 457,260 1.9 $ 1.06 – $ 14.59 5,523,297 |
Stock options | |
SHARE-BASED PAYMENTS | |
Schedule of status of share option plan and changes during the year | Year ended December 31 2023 2022 Weighted Weighted average average Stock options outstanding Number exercise price Number exercise price Outstanding, January 1 9,178,889 C$ 3.71 9,900,874 C$ 1.86 Replacement options — — 1,758,334 8.43 Granted 457,260 6.57 1,278,264 5.56 Exercised (3,866,208) 1.71 (3,674,769) 1.34 Expired, forfeited or cancelled (246,644) 13.14 (83,814) 16.81 Outstanding, December 31 5,523,297 C$ 4.93 9,178,889 C$ 3.71 Vested, December 31 4,308,120 C$ 4.64 7,701,986 C$ 3.38 |
Restricted share units | |
SHARE-BASED PAYMENTS | |
Schedule of information about number of units of other equity instruments and their weighted average fair value | Year ended December 31 Number of RSUs outstanding: 2023 2022 Outstanding, January 1 443,267 707,840 Awarded 295,429 172,301 Vested and settled (152,203) (402,430) Forfeitures during the year (6,274) (34,444) Outstanding, December 31 580,219 443,267 Number vesting in the year Number of RSUs outstanding: Total 2022 2023 2024 2025 2026 Outstanding, December 31, 2022 443,267 — 262,738 126,812 53,717 — Outstanding, December 31, 2023 580,219 N/A — 333,720 150,102 96,397 |
Deferred share units | |
SHARE-BASED PAYMENTS | |
Schedule of information about number of units of other equity instruments and their weighted average fair value | Year ended December 31 Number of DSUs outstanding: 2023 2022 Outstanding, January 1 559,725 707,028 Awarded and vested immediately 142,202 69,290 Settled during the year — (216,593) Outstanding, December 31 701,927 559,725 Vested, December 31 701,927 559,725 |
Performance share units | |
SHARE-BASED PAYMENTS | |
Schedule of information about number of units of other equity instruments and their weighted average fair value | Number of PSUs outstanding: Year ended December 31 2023 2022 Outstanding, January 1 — — Granted during the year 198,737 — Outstanding, December 31 198,737 — Vested, December 31 — — |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
RELATED PARTY TRANSACTIONS | |
Schedule of compensation of key management | Year ended December 31 2023 2022 Salaries and short term incentives $ 3,439 $ 3,871 Directors’ fees 366 291 Share based payments 1,895 1,987 $ 5,700 $ 6,149 |
SUPPLEMENTAL CASH FLOW INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
SUPPLEMENTAL CASH FLOW INFORMATION | |
Schedule of changes in non-cash working capital | Year ended December 31 2023 2022 Accounts receivable and prepaid expenses (294) (47) Inventory (5,635) (9,177) Valued added taxes recoverable (574) (8,044) Trade payables and accrued liabilities 2,904 1,487 Changes in non-cash working capital (3,599) (15,781) |
Schedule of cash flow effect of changes in project loan, credit Facility, and revolving facility | Year ended December 31 2023 2022 Repayment of the Newmont loan — (10,836) Repayment of the Camino Rojo project loan — (127,500) Proceeds from Credit Facility, net of transaction costs (note 13(a)) — 128,134 Principal repayments of Credit Facility (note 13(a)) (11,100) (5,550) Extinguishment of the Credit Facility (note 13(a)) (113,350) — Proceeds from the Revolving Facility, net of transaction costs (note 13(b)) 113,350 — Principal repayments of the Revolving Facility (note 13(b)) (25,000) — Revolving facility cash transaction costs (note 13(a)) (459) — Cash flow effect of changes In Project Loan, Credit Facility, and Revolving Facility (36,559) (15,752) |
Schedule of supplemental cash flow information | Year ended December 31 2023 2022 Financing activities Stock options exercised, credited to share capital with an offset to reserves $ 2,036 $ 3,033 Warrants exercised, credited to share capital with an offset to reserves 345 5,143 Common shares issued on maturity of RSUs, credited to share capital with an offset to reserves 228 541 Common shares issued on maturity of DSUs, credited to share capital with an offset to reserves — 324 Investing activities Common shares issued pursuant to the acquisition of Gold Standard, credited to share capital with an offset to the assets acquired and liabilities assumed — 149,363 Replacement options issued pursuant to the acquisition of Gold Standard, credited to reserves with an offset to the assets acquired and liabilities assumed — 1,647 Initial recognition of right of use assets, with an offset to lease obligation 484 2,300 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
SEGMENT INFORMATION | |
Schedule of mineral assets and equipment by geographic region | (i) Mexico Panama Nevada Corporate Total Year ended December 31, 2023 Revenue (note 3) $ 233,451 $ — $ — $ 192 $ 233,643 Cost of sales (92,047) — — (69) (92,116) Earnings from mining operations 141,404 — — 123 141,527 Exploration and evaluation expenses (note 5) (8,740) (6,001) (19,377) (498) (34,616) General and administrative expenses (note 6) — — — (13,408) (13,408) Interest income 4,134 — — 1,253 5,387 Depreciation (66) (40) (138) (260) (504) Share based payments (note 18) (170) (86) (317) (2,648) (3,221) Interest and accretion expense (1,648) — (795) (9,395) (11,838) Loss on extinguishment of Credit Facility — — — (1,547) (1,547) Foreign exchange and other gain (loss) (704) — — (739) (1,443) Impairment or derecognition of exploration properties — (72,429) (314) — (72,743) Income taxes (33,002) — — (1,602) (34,604) Income (loss) for the year $ 101,208 $ (78,556) $ (20,941) $ (28,721) $ (27,010) Mexico Panama USA Corporate Total Year ended December 31, 2022 Revenue (note 3) $ 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 5) (3,765) (7,176) (7,616) (382) (18,939) General and administrative expenses (note 6) — — — (10,913) (10,913) Interest income 1,844 — — 323 2,167 Depreciation (23) (15) (45) (194) (277) Share based payments (note 18) (37) (70) — (2,340) (2,447) Interest and accretion expense (2,315) — (35) (6,540) (8,890) Loss on extinguishment of Project Loan — — — (13,219) (13,219) Foreign exchange and other gain (loss) (778) — 76 3,757 3,055 Income taxes (29,478) — — (3,150) (32,628) Income (loss) for the year $ 93,237 $ (7,261) $ (7,620) $ (32,586) $ 45,770 (ii) At December 31, 2023 Mexico Panama Nevada Corporate Total Property, plant and equipment $ 210,339 $ — $ 525 $ 855 $ 211,719 Exploration and evaluation properties — 10,000 160,000 — 170,000 Total assets 336,374 10,673 161,137 27,594 535,778 At December 31, 2022 Mexico Panama Nevada Corporate Total 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 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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 $ 96,632 $ 96,632 $ — $ — $ — $ 96,632 Accounts receivable Amortized cost 316 18 — — 298 316 Restricted cash Amortized cost 1,011 1,011 — — — 1,011 $ 97,959 $ 97,661 $ — $ — $ 298 $ 97,959 Financial liabilities Trade and other payables Amortized cost $ 8,219 $ — $ — $ — $ 8,219 $ 8,219 Accrued liabilities Amortized cost 9,541 122 — — 9,419 9,541 Lease obligation Amortized cost 2,908 — 2,908 — — 2,908 Revolving Facility Amortized cost 88,350 — — 88,350 — 88,350 $ 109,018 $ 122 $ 2,908 $ 88,350 $ 17,638 $ 109,018 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 |
Liquidity risk | |
Financial Instruments | |
Schedule of risk management | At December 31, 2023, 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 $ 8,219 $ — $ — $ — $ 8,219 Accrued liabilities 9,541 — — — 9,541 Lease obligations 276 736 1,210 921 3,143 Revolving Facility 1,211 5,974 14,253 93,017 114,455 $ 19,247 $ 6,710 $ 15,463 $ 93,938 $ 135,358 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 obligations 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 |
Currency risk | |
Financial Instruments | |
Schedule of risk management | Canadian dollars US dollars Mexican pesos (thousands) (thousands) (thousands) Cash $ 27,168 $ 75,645 $ 7,523 Accounts receivable 68 25 4,993 Restricted funds 70 958 - Trade payables (487) (5,632) (55,827) Accrued liabilities (3,431) (2,636) (70,764) Lease obligations (1,041) (486) (27,607) Revolving Facility — (88,350) — Total foreign currency 22,347 (20,476) (141,682) Exchange rate 1.3226 1.0000 16.8935 Equivalent US dollars $ 16,896 $ (20,476) $ (8,387) 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) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
INCOME TAXES | |
Schedule of tax expense | Year ended December 31 2023 2022 Current income tax expense $ 22,354 $ 22,512 Mexican 7.5% Special Mining Duty expense 8,068 9,371 Withholding tax expense 1,601 3,150 Deferred income tax expense (recovery) 2,517 (2,698) Deferred Mexican 7.5% Special Mining Duty expense 64 293 Tax expense $ 34,604 $ 32,628 |
Schedule of reconciliation of effective tax rate | Year ended December 31 2023 2022 Income (loss) before tax $ 7,594 $ 78,398 Statutory income tax rate 26.8 % 26.8 % Expected income tax $ 2,036 $ 21,036 Differences between Canadian and foreign tax rates 6,442 4,117 Items not deductible for tax purposes 76 4,508 Share based compensation 674 107 Change in unrecognized deductible temporary differences 3,964 (10,928) True ups 4,263 1,901 Effect of changes in foreign exchange rates (7,806) (2,371) Inflationary adjustment and other (1,175) 1,532 Mexican Special Mining Duty 6,422 9,576 Withholding tax expense 1,601 3,150 Tax impact of impairment of exploration property 18,107 — Total income taxes 34,604 32,628 Effective tax rate 456 % 42 % |
Schedule of unrecognized deductible temporary differences | December 31, December 31, 2023 2022 Mineral properties and exploration expenditures $ 95,616 $ 30,467 Equipment 1,338 1,251 Site closure provisions 995 356 Long term debt — 6,570 Financing cost 2,861 3,452 Non-capital losses 64,700 53,436 Other 717 154 Unrecognized deductible temporary differences $ 166,227 $ 95,686 |
Schedule of recognized deferred tax assets and liabilities | December 31, December 31, 2023 2022 Property, plant and equipment $ (3,722) $ (216) Inventory (3,393) — Accrued liabilities 1,975 — Site closure provisions 1,810 2,363 Long term debt (317) — Non-capital losses 504 1,397 Intercompany debt (442) (1,619) Special Mining Duty 2,972 — Other 420 480 Recognized deferred tax assets (liabilities) $ (193) $ 2,405 |
Schedule of deductible temporary differences expiry dates | Tax losses December 31 expire in years 2023 2022 Canada 2027 to 2043 $ 62,776 $ 61,214 Panama 2024 to 2028 866 736 United States indefinite 2,794 27,086 |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
MATERIAL 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 |
BASIS OF PREPARATION (Details)
BASIS OF PREPARATION (Details) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Camino Rojo | ||
BASIS OF PREPARATION | ||
Proportion of ownership interest in subsidiary | 100% | 100% |
Principal place of business of subsidiary | Mexico | |
Minera Cerro Quema SA | ||
BASIS OF PREPARATION | ||
Proportion of ownership interest in subsidiary | 100% | 100% |
Principal place of business of subsidiary | Panama | |
Gold Standard Ventures (US) Inc. | ||
BASIS OF PREPARATION | ||
Proportion of ownership interest in subsidiary | 100% | 100% |
Principal place of business of subsidiary | USA | |
Madison Enterprises Inc. | ||
BASIS OF PREPARATION | ||
Proportion of ownership interest in subsidiary | 100% | 100% |
Principal place of business of subsidiary | USA |
REVENUE (Details)
REVENUE (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
REVENUE | ||
Gold | $ 230,955 | $ 192,394 |
Silver | 2,688 | 836 |
Revenue | 233,643 | 193,230 |
Revenue | 233,643 | 193,230 |
Customer A | ||
REVENUE | ||
Revenue | 54,707 | 129,866 |
Customer B | ||
REVENUE | ||
Revenue | 70,072 | 47,937 |
Customer C | ||
REVENUE | ||
Revenue | 97,334 | |
Others | ||
REVENUE | ||
Revenue | $ 11,530 | $ 15,427 |
COST OF SALES - Operating costs
COST OF SALES - Operating costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
COST OF SALES | ||
Mining and processing costs | $ 56,889 | $ 44,538 |
Refining and transportation costs | 783 | 1,059 |
Total operating costs | $ 57,672 | $ 45,597 |
COST OF SALES - Royalties (Deta
COST OF SALES - Royalties (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
COST OF SALES | ||
Royalties | $ 5,795 | $ 4,819 |
Camino Rojo Oxide 2% NSR royalty | ||
COST OF SALES | ||
Royalties | 4,628 | 3,818 |
Mexican 0.5% Extraordinary Mining Duty | ||
COST OF SALES | ||
Royalties | $ 1,167 | $ 1,001 |
EXPLORATION AND EVALUATION EX_3
EXPLORATION AND EVALUATION EXPENSES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
EXPLORATION AND EVALUATION EXPENSES | ||
Exploration and evaluation expenses | $ 34,616 | $ 18,939 |
Camino Rojo | ||
EXPLORATION AND EVALUATION EXPENSES | ||
Exploration and evaluation expenses | 8,740 | 3,765 |
Nevada (South Railroad, Lewis and Monitor Gold) | ||
EXPLORATION AND EVALUATION EXPENSES | ||
Exploration and evaluation expenses | 19,377 | 7,616 |
Cerro Quema | ||
EXPLORATION AND EVALUATION EXPENSES | ||
Exploration and evaluation expenses | 6,001 | 7,176 |
Other | ||
EXPLORATION AND EVALUATION EXPENSES | ||
Exploration and evaluation expenses | $ 498 | $ 382 |
GENERAL AND ADMINISTRATIVE EX_3
GENERAL AND ADMINISTRATIVE EXPENSES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
GENERAL AND ADMINISTRATIVE EXPENSES | ||
Office and administrative | $ 3,552 | $ 2,921 |
Professional fees | 2,718 | 2,237 |
Regulatory and transfer agent | 451 | 301 |
Salaries and benefits | 6,687 | 5,454 |
Total general and administrative expense | $ 13,408 | $ 10,913 |
INTEREST AND ACCRETION EXPENS_2
INTEREST AND ACCRETION EXPENSE - Components (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
INTEREST AND ACCRETION EXPENSE | ||
Interest expense (note 7(a)) | $ 10,254 | $ 7,368 |
Accretion expense (note 7(b)) | 1,584 | 1,522 |
Interest and accretion expense | $ 11,838 | $ 8,890 |
INTEREST AND ACCRETION EXPENS_3
INTEREST AND ACCRETION EXPENSE - Interest Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
INTEREST AND ACCRETION EXPENSE | ||
Interest expense on lease liabilities | $ 156 | $ 87 |
Other | 268 | 126 |
Total interest expense | 10,254 | 7,368 |
Credit Facility | ||
INTEREST AND ACCRETION EXPENSE | ||
Interest expense on borrowings | 6,030 | 4,903 |
Revolving facility | ||
INTEREST AND ACCRETION EXPENSE | ||
Interest expense on borrowings | 2,736 | |
Fresnillo obligation | ||
INTEREST AND ACCRETION EXPENSE | ||
Interest expense on borrowings | $ 1,064 | 1,383 |
Project loan | ||
INTEREST AND ACCRETION EXPENSE | ||
Interest expense on borrowings | $ 869 |
INTEREST AND ACCRETION EXPENS_4
INTEREST AND ACCRETION EXPENSE - Accretion Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
INTEREST AND ACCRETION EXPENSE | ||
Accretion of site closure provisions (note 15) | $ 539 | $ 508 |
Deferred revenue | 676 | |
Total accretion expense | 1,584 | 1,522 |
Credit Facility | ||
INTEREST AND ACCRETION EXPENSE | ||
Accretion expense | $ 369 | 387 |
Newmont loan | ||
INTEREST AND ACCRETION EXPENSE | ||
Accretion expense | 366 | |
Project loan | ||
INTEREST AND ACCRETION EXPENSE | ||
Accretion expense | $ 261 |
INVENTORY (Details)
INVENTORY (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Current | ||
Stockpiled ore | $ 913 | $ 1,869 |
In-process inventory | 20,509 | 15,961 |
Finished goods inventory | 4,041 | 1,406 |
Materials and supplies | 3,988 | 3,210 |
Inventory - current | 29,451 | 22,446 |
Long term | ||
Stockpiled low grade ore | 5,627 | 4,096 |
Inventory depreciation | $ 9,200 | $ 6,300 |
VALUE ADDED TAXES RECOVERABLE_2
VALUE ADDED TAXES RECOVERABLE (Details) $ in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2023 USD ($) | Dec. 31, 2023 MXN ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2023 MXN ($) | Dec. 31, 2022 USD ($) | |
VALUE ADDED TAXES RECOVERABLE | |||||
Current portion | $ 15,571 | $ 15,571 | $ 8,659 | ||
Long term portion | 826 | 826 | 5,229 | ||
Total | 16,397 | 16,397 | 13,888 | ||
Non current value added tax receivables under dispute | $ 800 | $ 13.9 | $ 4,400 | ||
Non current value added tax receivables under dispute reclassified to current | $ 4,200 | $ 71.6 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Changes in property, plant and equipment | ||
Opening net book value | $ 224,416 | |
Closing net book value | 211,719 | $ 224,416 |
Cost | ||
Changes in property, plant and equipment | ||
Opening net book value | 246,886 | 8,684 |
Additions | 21,339 | 14,642 |
Transfers from construction | 223,163 | |
Change in site closure provision (note 15) | (2,079) | 665 |
Disposals | 5 | |
Derecognition of leased assets | (117) | (215) |
Due to changes in exchange rates | 29 | (53) |
Closing net book value | 266,053 | 246,886 |
Accumulated depreciation | ||
Changes in property, plant and equipment | ||
Opening net book value | (22,470) | (1,049) |
Disposals | (5) | |
Depletion and depreciation | 31,921 | 21,647 |
Derecognition of leased assets | (52) | (215) |
Due to changes in exchange rates | (11) | |
Closing net book value | (54,334) | (22,470) |
Producing mineral property | ||
Changes in property, plant and equipment | ||
Opening net book value | 106,112 | |
Closing net book value | 104,414 | 106,112 |
Producing mineral property | Cost | ||
Changes in property, plant and equipment | ||
Opening net book value | 115,753 | |
Additions | 12,705 | 6,616 |
Transfers from construction | 127,002 | |
Reclassification of capitalized interest | (19,020) | |
Change in site closure provision (note 15) | (559) | 1,155 |
Closing net book value | 127,899 | 115,753 |
Producing mineral property | Accumulated depreciation | ||
Changes in property, plant and equipment | ||
Opening net book value | (9,641) | |
Depletion and depreciation | 13,844 | 9,641 |
Closing net book value | (23,485) | (9,641) |
Buildings | ||
Changes in property, plant and equipment | ||
Opening net book value | 65,722 | |
Closing net book value | 55,326 | 65,722 |
Buildings | Cost | ||
Changes in property, plant and equipment | ||
Opening net book value | 72,008 | 66 |
Additions | 141 | 1,788 |
Transfers from construction | 58,869 | |
Reclassification of capitalized interest | 11,585 | |
Change in site closure provision (note 15) | (927) | (300) |
Closing net book value | 71,222 | 72,008 |
Buildings | Accumulated depreciation | ||
Changes in property, plant and equipment | ||
Opening net book value | (6,286) | (6) |
Depletion and depreciation | 9,610 | 6,280 |
Closing net book value | (15,896) | (6,286) |
Machinery and equipment | ||
Changes in property, plant and equipment | ||
Opening net book value | 47,454 | |
Closing net book value | 42,377 | 47,454 |
Machinery and equipment | Cost | ||
Changes in property, plant and equipment | ||
Opening net book value | 52,345 | 5,238 |
Additions | 2,305 | 3,272 |
Transfers from construction | 36,684 | |
Reclassification of capitalized interest | 7,341 | |
Change in site closure provision (note 15) | (593) | (190) |
Disposals | 5 | |
Closing net book value | 54,052 | 52,345 |
Machinery and equipment | Accumulated depreciation | ||
Changes in property, plant and equipment | ||
Opening net book value | (4,891) | (350) |
Disposals | (5) | |
Depletion and depreciation | 6,789 | 4,541 |
Closing net book value | (11,675) | (4,891) |
Other assets | ||
Changes in property, plant and equipment | ||
Opening net book value | 1,915 | |
Closing net book value | 2,182 | 1,915 |
Other assets | Cost | ||
Changes in property, plant and equipment | ||
Opening net book value | 2,620 | 1,261 |
Additions | 823 | 666 |
Transfers from construction | 608 | |
Reclassification of capitalized interest | 94 | |
Due to changes in exchange rates | 7 | (9) |
Closing net book value | 3,450 | 2,620 |
Other assets | Accumulated depreciation | ||
Changes in property, plant and equipment | ||
Opening net book value | (705) | (288) |
Depletion and depreciation | 563 | 421 |
Due to changes in exchange rates | (4) | |
Closing net book value | (1,268) | (705) |
Other right of use assets | ||
Changes in property, plant and equipment | ||
Opening net book value | 3,213 | |
Closing net book value | 2,539 | 3,213 |
Other right of use assets | Cost | ||
Changes in property, plant and equipment | ||
Opening net book value | 4,160 | 2,119 |
Additions | 484 | 2,300 |
Derecognition of leased assets | (117) | (215) |
Due to changes in exchange rates | 22 | (44) |
Closing net book value | 4,549 | 4,160 |
Other right of use assets | Accumulated depreciation | ||
Changes in property, plant and equipment | ||
Opening net book value | (947) | (405) |
Depletion and depreciation | 1,115 | 764 |
Derecognition of leased assets | (52) | (215) |
Due to changes in exchange rates | (7) | |
Closing net book value | (2,010) | $ (947) |
Construction in progress | ||
Changes in property, plant and equipment | ||
Closing net book value | 4,881 | |
Construction in progress | Cost | ||
Changes in property, plant and equipment | ||
Additions | 4,881 | |
Closing net book value | $ 4,881 |
EXPLORATION AND EVALUATION PR_3
EXPLORATION AND EVALUATION PROPERTIES (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | |
Monitor Gold Corporation | |||
Mineral Properties | |||
Impairments | $ 0.3 | ||
Cerro Quema | |||
Mineral Properties | |||
Impairments | $ 72.4 | $ 0 | |
Recoverable amount | $ 10 | $ 10 |
EXPLORATION AND EVALUATION PR_4
EXPLORATION AND EVALUATION PROPERTIES - Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Changes in property, plant and equipment | ||||
At beginning of period | $ 242,743 | |||
At end of period | $ 170,000 | $ 242,743 | 170,000 | $ 242,743 |
Mineral Properties | ||||
Changes in property, plant and equipment | ||||
At beginning of period | 242,743 | 82,743 | ||
Acquired during 2022 | 160,000 | |||
Impairments | (72,429) | |||
Derecognition | (314) | |||
At end of period | 170,000 | 242,743 | 170,000 | 242,743 |
Cerro Quema | ||||
Changes in property, plant and equipment | ||||
Impairments | (72,400) | 0 | ||
Cerro Quema | Mineral Properties | ||||
Changes in property, plant and equipment | ||||
At beginning of period | 82,429 | 82,429 | ||
Impairments | (72,429) | |||
At end of period | 10,000 | 82,429 | 10,000 | 82,429 |
South Railroad and Lewis | Mineral Properties | ||||
Changes in property, plant and equipment | ||||
At beginning of period | 160,000 | |||
Acquired during 2022 | 160,000 | |||
At end of period | $ 160,000 | 160,000 | 160,000 | 160,000 |
Monitor Gold | ||||
Changes in property, plant and equipment | ||||
Impairments | (300) | |||
Monitor Gold | Mineral Properties | ||||
Changes in property, plant and equipment | ||||
At beginning of period | 314 | 314 | ||
Derecognition | $ (314) | |||
At end of period | $ 314 | $ 314 |
TRADE PAYABLES AND ACCRUED LI_3
TRADE PAYABLES AND ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
TRADE PAYABLES AND ACCRUED LIABILITIES | ||
Trade payables | $ 5,739 | $ 6,707 |
Royalties payable (note 4(b)) | 2,466 | 2,119 |
Goods or services received awaiting vendor invoices | 4,054 | 3,139 |
Payroll related | 6,532 | 3,380 |
Current portion of lease obligations (note 14) | 915 | 846 |
Accrued interest payable (notes 13(a) and 13(b)) | 59 | 1,660 |
RSUs expected to be cash settled (note 18(b)) | 352 | |
Other | 891 | 1,472 |
Total trade and other current payables | $ 20,656 | $ 19,675 |
DEBT (Details)
DEBT (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
DEBT | ||
Current | $ 45,000 | |
Non-current | $ 88,350 | 100,795 |
Total | 88,350 | 145,795 |
Credit Facility | ||
DEBT | ||
Current | 22,200 | |
Non-current | 100,795 | |
Total | 122,995 | |
Revolving Facility | ||
DEBT | ||
Non-current | 88,350 | |
Total | $ 88,350 | |
Fresnillo obligation | ||
DEBT | ||
Current | 22,800 | |
Total | $ 22,800 |
DEBT - Credit Facility (Details
DEBT - Credit Facility (Details) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Aug. 28, 2027 USD ($) | Aug. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) Part | Apr. 30, 2022 USD ($) | |
Credit Facility | ||||
DEBT | ||||
Unamortization transaction costs on borrowing | $ 2.5 | |||
Credit Facility | ||||
DEBT | ||||
Number of parts of credit facility | Part | 2 | |||
Term of credit facility | 5 years | |||
Term facility | ||||
DEBT | ||||
Notional amount | $ 100 | $ 100 | ||
Number of equal quarterly instalments | Part | 18 | |||
Revolving Facility | ||||
DEBT | ||||
Notional amount | $ 150 | $ 50 | $ 50 | |
Term of credit facility | 4 years | 3 years | ||
Unamortization transaction costs on borrowing | 1.1 | |||
Option of increased borrowing capacity amount | $ 200 | |||
Average interest rate (as a percent) | 7.90% | |||
Undrawn borrowing facilities | $ 61.7 | |||
Borrowing costs incurred | $ 0.5 | |||
Camino Rojo | ||||
DEBT | ||||
Unamortization transaction costs on borrowing | $ 10.7 |
DEBT- Credit Facility - Long Te
DEBT- Credit Facility - Long Term Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Changes in credit facility | ||
At the beginning | $ 145,795 | |
At the end | 88,350 | $ 145,795 |
Non-current | 88,350 | 100,795 |
Total | 88,350 | 145,795 |
Credit Facility | ||
Changes in credit facility | ||
At the beginning | 122,995 | |
Advances received during the year | 130,000 | |
Transaction costs paid, accreted over the life | (1,866) | |
Interest expensed during the year (note 7(a)) | 6,030 | 4,903 |
Accretion during the year (note 7(b)) | 369 | 387 |
Interest paid during the year | (6,030) | (4,879) |
Principal repayments during the year | (11,100) | (5,550) |
Converted from Credit Facility to Revolving Facility (note (b)) | (113,350) | |
Unamortized transaction costs expensed upon conversion to Revolving Facility | $ 1,086 | |
At the end | 122,995 | |
Current | 22,200 | |
Non-current | 100,795 | |
Total | $ 122,995 |
DEBT - Revolving facility (Deta
DEBT - Revolving facility (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
DEBT | |
Debt instrument credit facility leverage ratio | 3.50% |
Interest service coverage ratio | 4% |
Credit Facility | Minimum | |
DEBT | |
Working capital | $ 15 |
Credit Facility | Maximum | |
DEBT | |
Working capital | $ 278.6 |
Revolving Facility | |
DEBT | |
Average interest rate (as a percent) | 7.90% |
Revolving Facility | Minimum | |
DEBT | |
Standby fee (as a percent) | 0.56% |
Revolving Facility | Maximum | |
DEBT | |
Standby fee (as a percent) | 0.84% |
Revolving Facility | Secured Overnight Financing Rate | Minimum | |
DEBT | |
Applicable margin (as a percent) | 2.50% |
Revolving Facility | Secured Overnight Financing Rate | Maximum | |
DEBT | |
Applicable margin (as a percent) | 3.75% |
DEBT - Revolving Facility - Lon
DEBT - Revolving Facility - Long term debt (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Changes in credit facility | ||
At the beginning | $ 145,795 | |
At the end | 88,350 | $ 145,795 |
Non-current | 88,350 | 100,795 |
Total | 88,350 | $ 145,795 |
Revolving Facility | ||
Changes in credit facility | ||
Converted from Credit Facility to Revolving Facility (note (a)) | 113,350 | |
Interest expensed during the year (note 7(a)) | 2,736 | |
Interest paid during the year | (2,736) | |
Principal repayments during the year | (25,000) | |
At the end | 88,350 | |
Non-current | 88,350 | |
Total | $ 88,350 |
DEBT - Fresnillo Obligation (De
DEBT - Fresnillo Obligation (Details) - Fresnillo obligation - Layback Agreement - USD ($) | 12 Months Ended | |||
Dec. 01, 2022 | Feb. 22, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
DEBT | ||||
Consideration for right to mine | $ 62,800,000 | |||
Notional amount | 0 | $ 22,800,000 | ||
Percentage of interest payable | 5% | |||
Upon receipt of COFECE approval | ||||
DEBT | ||||
Consideration for right to mine | 25,000,000 | |||
Earlier of December 1, 2022, and 12 months following the commencement of commercial production | ||||
DEBT | ||||
Consideration for right to mine | $ 15,000,000 | |||
At the Camino Rojo Project | ||||
DEBT | ||||
Consideration for right to mine | $ 22,800,000 |
DEBT - Fresnillo Obligation - L
DEBT - Fresnillo Obligation - Long term debt (Details) - Fresnillo obligation - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
DEBT | ||
Beginning of the year | $ 22,800 | $ 37,800 |
Interest capitalized during the year | 473 | |
Interest paid during the year | (1,064) | (1,856) |
Principal repayments during the year | $ (22,800) | (15,000) |
End of the year | 22,800 | |
Current | 22,800 | |
Total | $ 22,800 |
LEASE OBLIGATIONS (Details)
LEASE OBLIGATIONS (Details) | 12 Months Ended |
Dec. 31, 2023 | |
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 oblig
LEASE OBLIGATIONS - Lease obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
LEASE OBLIGATIONS | ||
Beginning of year | $ 3,173 | $ 1,401 |
Additions | 484 | 2,300 |
Interest expense (note 7(a)) | 156 | 87 |
Lease payments | (1,125) | (661) |
Due to changes in exchange rates | 220 | 46 |
End of year | 2,908 | 3,173 |
Current (note 12) | 915 | 846 |
Non-current | 1,993 | 2,327 |
Lease liabilities | $ 2,908 | $ 3,173 |
LEASE OBLIGATIONS - Lease expen
LEASE OBLIGATIONS - Lease expenses recognized (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
LEASE OBLIGATIONS | ||
Interest expense on lease liabilities | $ 156 | $ 87 |
Variable lease payments not included in the measurement of lease liabilities | 12,905 | 15,586 |
Expenses relating to short-term leases | 241 | 168 |
Expenses relating to leases of low-value assets, excluding short-term leases | 79 | 108 |
Lease expenses recognized | $ 13,381 | $ 15,949 |
SITE CLOSURE PROVISIONS - Chang
SITE CLOSURE PROVISIONS - Changes in site closure provisions (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Changes in site closure provisions | ||
Beginning balance | $ 8,261 | $ 5,460 |
Acquisition of Gold Standard | 1,603 | |
Changes in cost estimates | (1,376) | 351 |
Change in estimated cash flows resulting from current activities | 427 | |
Remediation activities conducted during the year | (88) | |
Accretion during the year (note 7(b)) | 539 | 508 |
Ending balance | 7,424 | 8,261 |
Camino Rojo | ||
Changes in site closure provisions | ||
Beginning balance | 6,301 | 5,117 |
Changes in cost estimates | (1,996) | 351 |
Change in estimated cash flows resulting from current activities | 427 | |
Remediation activities conducted during the year | (88) | |
Accretion during the year (note 7(b)) | 521 | 494 |
Ending balance | 4,826 | 6,301 |
Nevada projects | ||
Changes in site closure provisions | ||
Beginning balance | 1,617 | |
Acquisition of Gold Standard | 1,603 | |
Changes in cost estimates | 463 | |
Accretion during the year (note 7(b)) | 18 | 14 |
Ending balance | 2,098 | 1,617 |
Cerro Quema Project | ||
Changes in site closure provisions | ||
Beginning balance | 343 | 343 |
Changes in cost estimates | 157 | |
Ending balance | $ 500 | $ 343 |
SITE CLOSURE PROVISIONS - (Deta
SITE CLOSURE PROVISIONS - (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Camino Rojo | ||
SITE CLOSURE PROVISIONS | ||
Undiscounted risk-adjusted cash flows | $ 9,765 | $ 8,644 |
Inflation rate | 3.70% | 7% |
Discount rate | 9.80% | 9.60% |
Nevada projects | ||
SITE CLOSURE PROVISIONS | ||
Undiscounted risk-adjusted cash flows | $ 2,336 | $ 1,724 |
Inflation rate | 2.60% | 2.70% |
Discount rate | 3.60% | 3.20% |
Cerro Quema Project | ||
SITE CLOSURE PROVISIONS | ||
Undiscounted risk-adjusted cash flows | $ 500 | $ 343 |
SHARE CAPITAL (Details)
SHARE CAPITAL (Details) | 12 Months Ended | ||
May 11, 2023 USD ($) shares | May 11, 2023 CAD ($) $ / shares shares | Dec. 31, 2022 USD ($) | |
SHARE CAPITAL | |||
Transaction costs | $ | $ 261,000 | ||
Agnico Eagle | |||
SHARE CAPITAL | |||
Number of shares issued on exercise of top-up right | shares | 3,987,241 | 3,987,241 | |
Price per share | $ / shares | $ 6.27 | ||
Proceeds from issuing shares | $ 18,551,000 | $ 25,000,000 | |
Transaction costs | $ 117,000 | $ 156,000 |
SHARE CAPITAL - Outstanding (De
SHARE CAPITAL - Outstanding (Details) | 12 Months Ended | |
Dec. 31, 2023 shares $ / shares | Dec. 31, 2022 shares $ / shares | |
SHARE CAPITAL | ||
Weighted average | $ / shares | $ 3 | $ 3 |
Exercised (per share) I $ / shares | $ / shares | $ 3 | |
Price range one | Warrants. | ||
SHARE CAPITAL | ||
Outstanding, beginning balance | shares | 29,545,000 | |
Exercised | shares | (1,291,800) | |
Outstanding, ending balance | shares | 28,253,200 | 29,545,000 |
Exercised (per share) I $ / shares | $ / shares | $ 3 |
EARNINGS (LOSS) PER SHARE - Bas
EARNINGS (LOSS) PER SHARE - Basic Earnings per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
EARNINGS (LOSS) PER SHARE | ||
Income (loss) for the year | $ (27,010) | $ 45,770 |
Weighted average number of common shares (thousands) | 311,482 | 272,202 |
Basic earnings (loss) per share | $ (0.09) | $ 0.17 |
EARNINGS (LOSS) PER SHARE - Dil
EARNINGS (LOSS) PER SHARE - Diluted Earnings per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
EARNINGS (LOSS) PER SHARE | ||
Income (loss) for the year | $ (27,010) | $ 45,770 |
Weighted average number of common shares (thousands) | ||
Weighted average number of common shares (thousands) | 311,482 | 272,202 |
Weighted average number of ordinary shares | 311,482 | 292,816 |
Diluted earnings (loss) per share | $ (0.09) | $ 0.16 |
Warrants | ||
Weighted average number of common shares (thousands) | ||
Weighted average number of ordinary shares | 14,526 | |
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 | |
DSUs | ||
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 |
EARNINGS (LOSS) PER SHARE (Deta
EARNINGS (LOSS) PER SHARE (Details) | 12 Months Ended |
Dec. 31, 2023 shares | |
Warrants | |
EARNINGS (LOSS) PER SHARE | |
Number of potential ordinary shares | 13,026,000 |
Stock options. | |
EARNINGS (LOSS) PER SHARE | |
Number of potential ordinary shares | 2,383,000 |
Restricted share units | |
EARNINGS (LOSS) PER SHARE | |
Number of potential ordinary shares | 375,000 |
Deferred share units | |
EARNINGS (LOSS) PER SHARE | |
Number of potential ordinary shares | 648,000 |
Bonus shares | |
EARNINGS (LOSS) PER SHARE | |
Number of potential ordinary shares | 500,000 |
SHARE-BASED PAYMENTS - Share-ba
SHARE-BASED PAYMENTS - Share-based compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
SHARE-BASED PAYMENTS | ||
Share based payments expense | $ 3,221 | $ 2,447 |
Stock options | ||
SHARE-BASED PAYMENTS | ||
Share based payments expense | 1,342 | 1,396 |
Restricted share units | ||
SHARE-BASED PAYMENTS | ||
Share based payments expense | 1,135 | 743 |
Deferred share units | ||
SHARE-BASED PAYMENTS | ||
Share based payments expense | 623 | $ 308 |
Performance share units | ||
SHARE-BASED PAYMENTS | ||
Share based payments expense | $ 121 |
SHARE-BASED PAYMENTS - Share op
SHARE-BASED PAYMENTS - Share option plan changes (Details) | 12 Months Ended | |||
Aug. 12, 2022 Options | Dec. 31, 2023 Options Y $ / shares | Dec. 31, 2022 Options Y $ / shares | Dec. 31, 2021 Y Options $ / 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 | ||||
Outstanding, beginning balance | Options | 9,178,889 | 9,900,874 | ||
Replacement options | Options | 1,758,334 | 1,758,334 | ||
Granted | Options | 457,260 | 1,278,264 | ||
Exercised | Options | (3,866,208) | (3,674,769) | ||
Expired, forfeited or cancelled | Options | 246,644 | 83,814 | ||
Outstanding, ending balance | Options | 5,523,297 | 9,178,889 | 9,900,874 | |
Vested (in shares) | Options | 4,308,120 | 7,701,986 | ||
Weighted average exercise price outstanding beginning | $ / shares | $ 3.71 | $ 1.86 | ||
Replacement options | $ / shares | 8.43 | |||
Granted | $ / shares | 6.57 | 5.56 | ||
Exercised | $ / shares | 1.71 | 1.34 | ||
Expired, forfeited or cancelled | $ / shares | 13.14 | 16.81 | ||
Weighted average exercise price outstanding ending | $ / shares | 4.93 | 3.71 | $ 1.86 | |
Vested, end of year | $ / shares | $ 4.64 | $ 3.38 | ||
Stock options life | Y | 5 | 3 |
SHARE-BASED PAYMENTS - Black-sc
SHARE-BASED PAYMENTS - Black-scholes (Details) $ / shares in Units, $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2023 USD ($) Y | Dec. 31, 2023 CAD ($) $ / shares | Dec. 31, 2022 USD ($) Y | Dec. 31, 2022 CAD ($) $ / shares | Dec. 31, 2021 Y | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Disclosure of terms and conditions of share-based payment arrangement | |||||||
Stock options life | Y | 5 | 5 | |||||
Stock options | |||||||
Disclosure of terms and conditions of share-based payment arrangement | |||||||
Grant date fair value | $ 1.4 | $ 4.1 | $ 1,000,000 | $ 3,100,000 | |||
Expected volatility, share options granted | 50% | 46% | |||||
Stock options life | Y | 5 | 3 | |||||
Risk free interest rate of share options granted | 3% | 2.90% | |||||
Dividends | $ | $ 0 | $ 0 | |||||
Stock options | Minimum | |||||||
Disclosure of terms and conditions of share-based payment arrangement | |||||||
Share price at grant date | $ / shares | $ 6.58 | $ 3.71 | |||||
Stock options | Maximum | |||||||
Disclosure of terms and conditions of share-based payment arrangement | |||||||
Share price at grant date | $ / shares | $ 6.07 | $ 5.98 |
SHARE-BASED PAYMENTS - Outstand
SHARE-BASED PAYMENTS - Outstanding (Details) | 12 Months Ended | ||
Dec. 31, 2023 EquityInstruments Options $ / shares | Dec. 31, 2022 Options | Dec. 31, 2021 Options | |
Price range one | Less than 3 months | |||
Disclosure of range of exercise prices of outstanding share options | |||
Weighted average remaining life (years) | 2 months 12 days | ||
Outstanding (in shares) | EquityInstruments | 476,168 | ||
Price range one | 4 to 12 months | |||
Disclosure of range of exercise prices of outstanding share options | |||
Weighted average remaining life (years) | 7 months 6 days | ||
Outstanding (in shares) | EquityInstruments | 20,000 | ||
Price range one | 13 to 24 months | |||
Disclosure of range of exercise prices of outstanding share options | |||
Weighted average remaining life (years) | 1 year 3 months 18 days | ||
Outstanding (in shares) | EquityInstruments | 1,118,792 | ||
Price range one | 25 to 36 months | |||
Disclosure of range of exercise prices of outstanding share options | |||
Weighted average remaining life (years) | 2 years 3 months 18 days | ||
Outstanding (in shares) | EquityInstruments | 637,674 | ||
Price range one | More than 3 years | |||
Disclosure of range of exercise prices of outstanding share options | |||
Weighted average remaining life (years) | 3 years 6 months | ||
Outstanding (in shares) | EquityInstruments | 76,580 | ||
Price range one | Minimum | 13 to 24 months | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | $ 2.21 | ||
Price range one | Minimum | 25 to 36 months | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | 4.04 | ||
Price range one | Minimum | More than 3 years | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | 3.71 | ||
Price range one | Maximum | Less than 3 months | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | 1.06 | ||
Price range one | Maximum | 4 to 12 months | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | 1.65 | ||
Price range one | Maximum | 13 to 24 months | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | 3.82 | ||
Price range one | Maximum | 25 to 36 months | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | 4.80 | ||
Price range one | Maximum | More than 3 years | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | $ 3.88 | ||
Price range two | Less than 3 months | |||
Disclosure of range of exercise prices of outstanding share options | |||
Weighted average remaining life (years) | 1 month 6 days | ||
Outstanding (in shares) | EquityInstruments | 112,611 | ||
Price range two | 4 to 12 months | |||
Disclosure of range of exercise prices of outstanding share options | |||
Weighted average remaining life (years) | 7 months 6 days | ||
Outstanding (in shares) | EquityInstruments | 311,331 | ||
Price range two | 13 to 24 months | |||
Disclosure of range of exercise prices of outstanding share options | |||
Weighted average remaining life (years) | 1 year 8 months 12 days | ||
Outstanding (in shares) | EquityInstruments | 50,000 | ||
Price range two | 25 to 36 months | |||
Disclosure of range of exercise prices of outstanding share options | |||
Weighted average remaining life (years) | 2 years 1 month 6 days | ||
Outstanding (in shares) | EquityInstruments | 50,388 | ||
Price range two | More than 3 years | |||
Disclosure of range of exercise prices of outstanding share options | |||
Weighted average remaining life (years) | 3 years 4 months 24 days | ||
Outstanding (in shares) | EquityInstruments | 1,139,119 | ||
Price range two | Minimum | 25 to 36 months | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | $ 7.05 | ||
Price range two | Minimum | More than 3 years | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | 5.06 | ||
Price range two | Maximum | Less than 3 months | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | 14.59 | ||
Price range two | Maximum | 4 to 12 months | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | 4.78 | ||
Price range two | Maximum | 13 to 24 months | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | 5.80 | ||
Price range two | Maximum | 25 to 36 months | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | 7.43 | ||
Price range two | Maximum | More than 3 years | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | $ 5.98 | ||
Price range three | 4 to 12 months | |||
Disclosure of range of exercise prices of outstanding share options | |||
Weighted average remaining life (years) | 7 months 6 days | ||
Outstanding (in shares) | EquityInstruments | 705,210 | ||
Price range three | 13 to 24 months | |||
Disclosure of range of exercise prices of outstanding share options | |||
Weighted average remaining life (years) | 1 year 8 months 12 days | ||
Outstanding (in shares) | EquityInstruments | 205,964 | ||
Price range three | More than 3 years | |||
Disclosure of range of exercise prices of outstanding share options | |||
Weighted average remaining life (years) | 4 years 2 months 12 days | ||
Outstanding (in shares) | EquityInstruments | 457,260 | ||
Price range three | Minimum | 4 to 12 months | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | $ 6.12 | ||
Price range three | Minimum | 13 to 24 months | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | 6.03 | ||
Price range three | Minimum | More than 3 years | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | 6.07 | ||
Price range three | Maximum | 4 to 12 months | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | 7.78 | ||
Price range three | Maximum | 13 to 24 months | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | 7.63 | ||
Price range three | Maximum | More than 3 years | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | $ 6.58 | ||
Price range four | 4 to 12 months | |||
Disclosure of range of exercise prices of outstanding share options | |||
Weighted average remaining life (years) | 7 months 6 days | ||
Outstanding (in shares) | EquityInstruments | 140,114 | ||
Price range four | 13 to 24 months | |||
Disclosure of range of exercise prices of outstanding share options | |||
Weighted average remaining life (years) | 1 year 2 months 12 days | ||
Outstanding (in shares) | EquityInstruments | 22,086 | ||
Price range four | More than 3 years | |||
Disclosure of range of exercise prices of outstanding share options | |||
Weighted average remaining life (years) | 1 year 10 months 24 days | ||
Outstanding (in shares) | EquityInstruments | 5,523,297 | ||
Price range four | Minimum | 13 to 24 months | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | $ 8.55 | ||
Price range four | Minimum | More than 3 years | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | 1.06 | ||
Price range four | Maximum | 4 to 12 months | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | 8.81 | ||
Price range four | Maximum | 13 to 24 months | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | 8.81 | ||
Price range four | Maximum | More than 3 years | |||
Disclosure of range of exercise prices of outstanding share options | |||
Exercise price (per share) | $ 14.59 | ||
Stock options | |||
Disclosure of range of exercise prices of outstanding share options | |||
Outstanding (in shares) | Options | 5,523,297 | 9,178,889 | 9,900,874 |
Vested (in shares) | Options | 4,308,120 | 7,701,986 |
SHARE-BASED PAYMENTS - Subseque
SHARE-BASED PAYMENTS - Subsequent (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
SHARE-BASED PAYMENTS | ||
Proceeds from exercise of options | $ 7,760 | $ 20,024 |
SHARE-BASED PAYMENTS - RSU's (D
SHARE-BASED PAYMENTS - RSU's (Details) - Restricted share units $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2023 EquityInstruments | Dec. 31, 2023 shares EquityInstruments | Dec. 31, 2023 USD ($) EquityInstruments | Dec. 31, 2023 EquityInstruments | Dec. 31, 2022 shares EquityInstruments | Dec. 31, 2022 USD ($) EquityInstruments | Dec. 31, 2022 EquityInstruments | |
Disclosure of Equity Instruments other than options | |||||||
Outstanding, beginning balance | 443,267 | 443,267 | 707,840 | ||||
Awarded | 295,429 | 172,301 | |||||
Vested and settled (in shares) | (152,203) | (402,430) | |||||
Forfeitures during the Year | (6,274) | (34,444) | |||||
Outstanding, ending balance | 580,219 | 580,219 | 443,267 | 443,267 | |||
Settled during the year | 349,204 | ||||||
Number of instruments settled in cash | 94,063 | 94,063 | 94,063 | 94,063 | 365,935 | 365,935 | 365,935 |
Cash proceeds from settlement of instruments | $ | $ 0.5 | $ 1.7 | |||||
Number of instruments expected to be settled in cash | 94,063 | 94,063 | 94,063 | ||||
2023 | |||||||
Disclosure of Equity Instruments other than options | |||||||
Outstanding, beginning balance | 262,738 | ||||||
Outstanding, ending balance | 262,738 | ||||||
2024 | |||||||
Disclosure of Equity Instruments other than options | |||||||
Outstanding, beginning balance | 126,812 | ||||||
Outstanding, ending balance | 333,720 | 126,812 | |||||
2025 | |||||||
Disclosure of Equity Instruments other than options | |||||||
Outstanding, beginning balance | 53,717 | ||||||
Outstanding, ending balance | 150,102 | 53,717 | |||||
2026 | |||||||
Disclosure of Equity Instruments other than options | |||||||
Outstanding, ending balance | 96,397 | ||||||
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 units | 12 Months Ended | |
Dec. 31, 2023 EquityInstruments | Dec. 31, 2022 USD ($) EquityInstruments | |
Disclosure of Equity Instruments other than options | ||
Outstanding, beginning balance | 559,725 | 707,028 |
Granted during the year | 142,202 | 69,290 |
Settled during the year | 216,593 | |
Outstanding, ending balance | 701,927 | 559,725 |
Vested (in shares) | 701,927 | 559,725 |
Number of instruments settled in cash | 0 | 104,759 |
Cash proceeds from settlement of instruments | $ | $ 330,000 |
SHARE-BASED PAYMENTS - Performa
SHARE-BASED PAYMENTS - Performance Share Units (Details) - Performance share units - EquityInstruments | 12 Months Ended | |
Mar. 27, 2023 | Dec. 31, 2023 | |
Disclosure of Equity Instruments other than options | ||
Granted during the year | 198,737 | 198,737 |
Outstanding, ending balance | 198,737 |
SHARE-BASED PAYMENTS - Perfor_2
SHARE-BASED PAYMENTS - Performance Share Units - Narrative (Details) - Performance share units $ in Thousands | 1 Months Ended | 12 Months Ended | |
Mar. 27, 2023 USD ($) EquityInstruments | Mar. 31, 2023 | Dec. 31, 2023 EquityInstruments | |
Disclosure of Equity Instruments other than options | |||
Number of days of volume weighted average price considered for cash payment | 5 days | ||
Granted during the year | EquityInstruments | 198,737 | 198,737 | |
Grant date fair value | $ | $ 1,300 | ||
Minimum | |||
Disclosure of Equity Instruments other than options | |||
Performance percentage | 0% | ||
Maximum | |||
Disclosure of Equity Instruments other than options | |||
Performance percentage | 200% |
SHARE-BASED PAYMENTS - Bonus Un
SHARE-BASED PAYMENTS - Bonus Units (Details) | 12 Months Ended |
Dec. 31, 2017 shares | |
Bonus shares | Directors | |
Disclosure of Equity Instruments other than options | |
Awarded | 500,000 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
RELATED PARTY TRANSACTIONS | ||
Share based payments | $ 1,895 | $ 1,987 |
Total Key Management compensation | 5,700 | 6,149 |
Accrued short term | 1,400 | 1,100 |
Directors' fees | ||
RELATED PARTY TRANSACTIONS | ||
Salaries and short term incentives paid | 366 | 291 |
Consulting fees | ||
RELATED PARTY TRANSACTIONS | ||
Salaries and short term incentives paid | $ 3,439 | $ 3,871 |
SUPPLEMENTAL CASH FLOW INFORM_3
SUPPLEMENTAL CASH FLOW INFORMATION - Changes in non-cash working capital (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
SUPPLEMENTAL CASH FLOW INFORMATION | ||
Accounts receivable and prepaid expenses | $ (294) | $ (47) |
Inventory | (5,635) | (9,177) |
Value added taxes recoverable | (574) | (8,044) |
Trade payables and accrued liabilities | 2,904 | 1,487 |
Changes in non-cash working capital | $ (3,599) | $ (15,781) |
SUPPLEMENTAL CASH FLOW INFORM_4
SUPPLEMENTAL CASH FLOW INFORMATION - Changes in project loan, credit facility, and revolving facility (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
SUPPLEMENTAL CASH FLOW INFORMATION | ||
Cash flow effect of changes In Project Loan, Credit Facility, and Revolving Facility | $ (36,559) | $ (15,752) |
Newmont loan | ||
SUPPLEMENTAL CASH FLOW INFORMATION | ||
Principal repayments during the year | (10,836) | |
Camino Rojo project loan | ||
SUPPLEMENTAL CASH FLOW INFORMATION | ||
Principal repayments during the year | (127,500) | |
Credit facility | ||
SUPPLEMENTAL CASH FLOW INFORMATION | ||
Principal repayments during the year | (11,100) | (5,550) |
Proceeds from debt, net of transaction costs | 128,134 | |
Principal repayments of debt | (11,100) | (5,550) |
Extinguishment of the Credit Facility (note 13(a)) | (113,350) | |
Transaction costs paid, accreted over the life | $ (1,866) | |
Revolving facility | ||
SUPPLEMENTAL CASH FLOW INFORMATION | ||
Principal repayments during the year | (25,000) | |
Proceeds from debt, net of transaction costs | 113,350 | |
Principal repayments of debt | (25,000) | |
Transaction costs paid, accreted over the life | $ (459) |
SUPPLEMENTAL CASH FLOW INFORM_5
SUPPLEMENTAL CASH FLOW INFORMATION - Non-cash investing and financing activities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Common shares issued pursuant to the acquisition of Gold Standard, credited to share capital with an offset to the assets acquired and liabilities assumed | $ 149,363 | |
Replacement options issued pursuant to the acquisition of Gold Standard, credited to reserves with an offset to the assets acquired and liabilities assumed | 1,647 | |
Initial recognition of right of use assets, with an offset to lease obligation | $ 484 | 2,300 |
Stock options | ||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Liabilities arising from financing activities | 2,036 | 3,033 |
Restricted share units | ||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Shares issued | 228 | 541 |
Deferred Stock Unit | ||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Liabilities arising from financing activities | 324 | |
Warrants exercised | ||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Liabilities arising from financing activities | $ 345 | $ 5,143 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of geographical areas [line items] | ||
Revenue (note 3) | $ 233,643 | $ 193,230 |
Cost of sales | (92,116) | (65,369) |
EARNINGS FROM MINING OPERATIONS | 141,527 | 127,861 |
EXPLORATION AND EVALUATION EXPENSES (note 5) | (34,616) | (18,939) |
GENERAL AND ADMINISTRATIVE EXPENSES (note 6) | (13,408) | (10,913) |
Interest income | 5,387 | 2,167 |
Depreciation | (504) | (277) |
Share based payments (note 18) | (3,221) | (2,447) |
Interest and accretion expense (note 7) | (11,838) | (8,890) |
Loss on extinguishment of Project Loan | (1,547) | (13,219) |
Foreign exchange and other gains (losses) | (1,443) | 3,055 |
Impairment or derecognition of exploration properties | (72,743) | |
Income taxes (note 25) | (34,604) | (32,628) |
INCOME (LOSS) FOR THE YEAR | (27,010) | 45,770 |
Property, plant and equipment (note 10) | 211,719 | 224,416 |
Exploration and evaluation properties | 170,000 | 242,743 |
Total assets | 535,778 | 613,816 |
Total liabilities | (135,237) | (216,832) |
Mexico | ||
Disclosure of geographical areas [line items] | ||
Revenue (note 3) | 233,451 | 193,109 |
Cost of sales | (92,047) | (65,320) |
EARNINGS FROM MINING OPERATIONS | 141,404 | 127,789 |
EXPLORATION AND EVALUATION EXPENSES (note 5) | (8,740) | (3,765) |
Interest income | 4,134 | 1,844 |
Depreciation | (66) | (23) |
Share based payments (note 18) | (170) | (37) |
Interest and accretion expense (note 7) | (1,648) | (2,315) |
Foreign exchange and other gains (losses) | (704) | (778) |
Income taxes (note 25) | (33,002) | (29,478) |
INCOME (LOSS) FOR THE YEAR | 101,208 | 93,237 |
Property, plant and equipment (note 10) | 210,339 | 222,767 |
Total assets | 336,374 | 348,390 |
Panama | ||
Disclosure of geographical areas [line items] | ||
EXPLORATION AND EVALUATION EXPENSES (note 5) | (6,001) | (7,176) |
Depreciation | (40) | (15) |
Share based payments (note 18) | (86) | (70) |
Impairment or derecognition of exploration properties | (72,429) | |
INCOME (LOSS) FOR THE YEAR | (78,556) | (7,261) |
Property, plant and equipment (note 10) | 39 | |
Exploration and evaluation properties | 10,000 | 82,429 |
Total assets | 10,673 | 83,291 |
USA | ||
Disclosure of geographical areas [line items] | ||
EXPLORATION AND EVALUATION EXPENSES (note 5) | (19,377) | (7,616) |
Depreciation | (138) | (45) |
Share based payments (note 18) | (317) | |
Interest and accretion expense (note 7) | (795) | (35) |
Foreign exchange and other gains (losses) | 76 | |
Impairment or derecognition of exploration properties | (314) | |
INCOME (LOSS) FOR THE YEAR | (20,941) | (7,620) |
Property, plant and equipment (note 10) | 525 | 577 |
Exploration and evaluation properties | 160,000 | 160,314 |
Total assets | 161,137 | 163,857 |
Canada | ||
Disclosure of geographical areas [line items] | ||
Revenue (note 3) | 192 | 121 |
Cost of sales | (69) | (49) |
EARNINGS FROM MINING OPERATIONS | 123 | 72 |
EXPLORATION AND EVALUATION EXPENSES (note 5) | (498) | (382) |
GENERAL AND ADMINISTRATIVE EXPENSES (note 6) | (13,408) | (10,913) |
Interest income | 1,253 | 323 |
Depreciation | (260) | (194) |
Share based payments (note 18) | (2,648) | (2,340) |
Interest and accretion expense (note 7) | (9,395) | |
Loss on extinguishment of Project Loan | (1,547) | (13,219) |
Interest and finance costs | (6,540) | |
Foreign exchange and other gains (losses) | (739) | 3,757 |
Income taxes (note 25) | (1,602) | (3,150) |
INCOME (LOSS) FOR THE YEAR | (28,721) | (32,586) |
Property, plant and equipment (note 10) | 855 | 1,033 |
Total assets | $ 27,594 | $ 18,278 |
FINANCIAL INSTRUMENTS (Details)
FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Revolving Facility | ||
Financial Instruments | ||
Discount rate | 7.90% | |
Carrying value | ||
Financial Instruments | ||
Financial assets | $ 97,959 | $ 100,027 |
Financial liabilities | 109,018 | 165,786 |
Carrying value | Amortized cost, liabilities | Trade and other payables | ||
Financial Instruments | ||
Financial liabilities | 8,219 | 8,851 |
Carrying value | Amortized cost, liabilities | Accrued liabilities | ||
Financial Instruments | ||
Financial liabilities | 9,541 | 7,967 |
Carrying value | Amortized cost, liabilities | Fresnillo obligation | ||
Financial Instruments | ||
Financial liabilities | 22,800 | |
Carrying value | Amortized cost, liabilities | Lease obligations | ||
Financial Instruments | ||
Financial liabilities | 2,908 | 3,173 |
Carrying value | Amortized cost, liabilities | Credit Facility | ||
Financial Instruments | ||
Financial liabilities | 122,995 | |
Carrying value | Amortized cost, liabilities | Revolving Facility | ||
Financial Instruments | ||
Financial liabilities | 88,350 | |
Carrying value | FVTPL, financial asset | Cash and cash equivalents | ||
Financial Instruments | ||
Financial assets | 96,632 | 96,278 |
Carrying value | Amortized costs, financial asset | Accounts receivable | ||
Financial Instruments | ||
Financial assets | 316 | 317 |
Carrying value | Amortized costs, financial asset | Restricted cash | ||
Financial Instruments | ||
Financial assets | 1,011 | 3,432 |
Fair value | ||
Financial Instruments | ||
Financial liabilities, fair value | 109,018 | 166,737 |
Financial assets, fair value | 97,959 | 100,027 |
Fair value | Amortized cost, liabilities | Trade and other payables | ||
Financial Instruments | ||
Financial liabilities, fair value | 8,219 | 8,851 |
Fair value | Amortized cost, liabilities | Accrued liabilities | ||
Financial Instruments | ||
Financial liabilities, fair value | 9,541 | 7,967 |
Fair value | Amortized cost, liabilities | Fresnillo obligation | ||
Financial Instruments | ||
Financial liabilities, fair value | 22,296 | |
Fair value | Amortized cost, liabilities | Lease obligations | ||
Financial Instruments | ||
Financial liabilities, fair value | 2,908 | 3,173 |
Fair value | Amortized cost, liabilities | Credit Facility | ||
Financial Instruments | ||
Financial liabilities, fair value | 124,450 | |
Fair value | Amortized cost, liabilities | Revolving Facility | ||
Financial Instruments | ||
Financial liabilities | 88,400 | |
Financial liabilities, fair value | 88,350 | |
Fair value | FVTPL, financial asset | Cash and cash equivalents | ||
Financial Instruments | ||
Financial assets, fair value | 96,632 | 96,278 |
Fair value | Amortized costs, financial asset | Accounts receivable | ||
Financial Instruments | ||
Financial assets, fair value | 316 | 317 |
Fair value | Amortized costs, financial asset | Restricted cash | ||
Financial Instruments | ||
Financial assets, fair value | 1,011 | 3,432 |
Fair value short term nature | ||
Financial Instruments | ||
Financial liabilities, fair value | 17,638 | 16,466 |
Financial assets, fair value | 298 | 296 |
Fair value short term nature | Amortized cost, liabilities | Trade and other payables | ||
Financial Instruments | ||
Financial liabilities, fair value | 8,219 | 8,851 |
Fair value short term nature | Amortized cost, liabilities | Accrued liabilities | ||
Financial Instruments | ||
Financial liabilities, fair value | 9,419 | 7,615 |
Fair value short term nature | Amortized costs, financial asset | Accounts receivable | ||
Financial Instruments | ||
Financial assets, fair value | 298 | 296 |
Level 1 of fair value hierarchy | Fair value | ||
Financial Instruments | ||
Financial liabilities, fair value | 122 | 352 |
Financial assets, fair value | 97,661 | 99,731 |
Level 1 of fair value hierarchy | Fair value | Amortized cost, liabilities | Accrued liabilities | ||
Financial Instruments | ||
Financial liabilities, fair value | 122 | 352 |
Level 1 of fair value hierarchy | Fair value | FVTPL, financial asset | Cash and cash equivalents | ||
Financial Instruments | ||
Financial assets, fair value | 96,632 | 96,278 |
Level 1 of fair value hierarchy | Fair value | Amortized costs, financial asset | Accounts receivable | ||
Financial Instruments | ||
Financial assets, fair value | 18 | 21 |
Level 1 of fair value hierarchy | Fair value | Amortized costs, financial asset | Restricted cash | ||
Financial Instruments | ||
Financial assets, fair value | 1,011 | 3,432 |
Level 2 of fair value hierarchy | Fair value | ||
Financial Instruments | ||
Financial liabilities, fair value | 2,908 | 3,173 |
Level 2 of fair value hierarchy | Fair value | Amortized cost, liabilities | Lease obligations | ||
Financial Instruments | ||
Financial liabilities, fair value | 2,908 | 3,173 |
Level 3 of fair value hierarchy | Fair value | ||
Financial Instruments | ||
Financial liabilities, fair value | 88,350 | 146,746 |
Level 3 of fair value hierarchy | Fair value | Amortized cost, liabilities | Fresnillo obligation | ||
Financial Instruments | ||
Financial liabilities, fair value | 22,296 | |
Level 3 of fair value hierarchy | Fair value | Amortized cost, liabilities | Credit Facility | ||
Financial Instruments | ||
Financial liabilities, fair value | $ 124,450 | |
Level 3 of fair value hierarchy | Fair value | Amortized cost, liabilities | Revolving Facility | ||
Financial Instruments | ||
Financial liabilities, fair value | $ 88,350 |
FINANCIAL INSTRUMENTS - Liquidi
FINANCIAL INSTRUMENTS - Liquidity risk (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financial Instruments | ||
Borrowings | $ 88,350 | $ 145,795 |
Liquidity risk | ||
Financial Instruments | ||
Financial liabilities | 135,358 | 190,199 |
Trade and other payables | 8,219 | 8,851 |
Accrued liabilities | 9,541 | 7,967 |
Lease obligation | 3,143 | 3,527 |
Credit Facility | 146,006 | |
Liquidity risk | Revolving Facility | ||
Financial Instruments | ||
Financial liabilities | 114,455 | |
Liquidity risk | Fresnillo obligation | ||
Financial Instruments | ||
Financial liabilities | 23,848 | |
Less than 3 months | Liquidity risk | ||
Financial Instruments | ||
Financial liabilities | 19,247 | 25,161 |
Trade and other payables | 8,219 | 8,851 |
Accrued liabilities | 9,541 | 7,967 |
Lease obligation | 276 | 248 |
Credit Facility | 7,810 | |
Less than 3 months | Liquidity risk | Revolving Facility | ||
Financial Instruments | ||
Financial liabilities | 1,211 | |
Less than 3 months | Liquidity risk | Fresnillo obligation | ||
Financial Instruments | ||
Financial liabilities | 285 | |
Between 3 months and 1 year | Liquidity risk | ||
Financial Instruments | ||
Financial liabilities | 6,710 | 47,174 |
Lease obligation | 736 | 743 |
Credit Facility | 22,868 | |
Between 3 months and 1 year | Liquidity risk | Revolving Facility | ||
Financial Instruments | ||
Financial liabilities | 5,974 | |
Between 3 months and 1 year | Liquidity risk | Fresnillo obligation | ||
Financial Instruments | ||
Financial liabilities | 23,563 | |
Between 1 year and 3 years | Liquidity risk | ||
Financial Instruments | ||
Financial liabilities | 15,463 | 86,876 |
Lease obligation | 1,210 | 1,310 |
Credit Facility | 85,566 | |
Between 1 year and 3 years | Liquidity risk | Revolving Facility | ||
Financial Instruments | ||
Financial liabilities | 14,253 | |
Later than 3 years | Liquidity risk | ||
Financial Instruments | ||
Financial liabilities | 93,938 | 30,988 |
Lease obligation | 921 | 1,226 |
Credit Facility | $ 29,762 | |
Later than 3 years | Liquidity risk | Revolving Facility | ||
Financial Instruments | ||
Financial liabilities | $ 93,017 |
FINANCIAL INSTRUMENTS - Commodi
FINANCIAL INSTRUMENTS - Commodity price risk and Currency risk (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Currency risk | ||
Financial Instruments | ||
Percentage of reasonably possible increase in unobservable input, assets | 10% | |
Percentage of reasonably possible decrease in unobservable input, liabilities Percentage of reasonably possible decrease in unobservable input, liabilities | 10% | |
Increase (decrease) in fair value measurement due to reasonably possible increase | $ 3.8 | $ 4.5 |
Increase (decrease) in fair value measurement due to reasonably possible decrease | 0.8 | 0.6 |
Interest rate risk | ||
Financial Instruments | ||
Increase (decrease) in fair value measurement due to reasonably possible increase | $ 0.1 | 0.4 |
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 | $ 23.4 | $ 19.3 |
FINANCIAL INSTRUMENTS - Financi
FINANCIAL INSTRUMENTS - Financial instruments (Details) | 12 Months Ended | ||||||||||||
Dec. 31, 2023 CAD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2023 MXN ($) | Dec. 31, 2022 CAD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 MXN ($) | Dec. 31, 2022 CAD ($) $ / shares | Dec. 31, 2022 CAD ($) $ / shares | Dec. 31, 2022 CAD ($) $ / $ | Dec. 31, 2023 USD ($) | Dec. 31, 2023 MXN ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 MXN ($) | |
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||||||||||||
Total foreign currency | $ 22,347,000 | $ (20,476,000) | $ (141,682,000) | $ 10,964,000 | $ (69,269,000) | $ (127,410,000) | |||||||
Exchange rate | 1.3226 | 1 | 16.8935 | 1.3544 | 1 | 19.3615 | |||||||
Equivalent US dollars | $ 16,896,000 | 8,095,000 | $ 8,095,000 | $ 8,095,000 | $ 8,095,000 | $ (20,476,000) | $ (8,387,000) | $ (69,269,000) | $ (6,581,000) | ||||
Trade and other payables | |||||||||||||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||||||||||||
Total foreign currency | (487,000) | $ (5,632,000) | $ (55,827,000) | (337,000) | (6,104,000) | (87,298,000) | |||||||
Lease obligations | |||||||||||||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||||||||||||
Total foreign currency | (1,041,000) | (486,000) | (27,607,000) | (1,323,000) | (1,103,000) | (21,158,000) | |||||||
Fresnillo obligation | |||||||||||||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||||||||||||
Total foreign currency | (22,800,000) | ||||||||||||
Accrued liabilities | |||||||||||||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||||||||||||
Total foreign currency | (3,431,000) | (2,636,000) | (70,764,000) | (2,972,000) | (4,447,000) | (25,679,000) | |||||||
Credit Facility | |||||||||||||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||||||||||||
Total foreign currency | 0 | (88,350,000) | (122,995,000) | ||||||||||
Cash | |||||||||||||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||||||||||||
Total foreign currency | 27,168,000 | 75,645,000 | 7,523,000 | 15,498,000 | 84,771,000 | 1,250,000 | |||||||
Accounts receivable | |||||||||||||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||||||||||||
Total foreign currency | 68,000 | 25,000 | $ 4,993,000 | 28,000 | 29,000 | $ 5,475,000 | |||||||
Restricted cash | |||||||||||||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||||||||||||
Total foreign currency | $ 70,000 | $ 958,000 | $ 70,000 | $ 3,380,000 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Purchase orders and contracts | ||
COMMITMENTS AND CONTINGENCIES | ||
Capital commitments | $ 3.7 | $ 2 |
Period for completing capital commitments | 12 months | |
Severance payments | ||
COMMITMENTS AND CONTINGENCIES | ||
Financial effect | $ 7.4 | $ 3.7 |
INCOME TAXES - Tax amounts reco
INCOME TAXES - Tax amounts recognized in profit or loss (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
INCOME TAXES | ||
Special Mining Duty | 7.50% | |
Current income tax expense | $ 22,354 | $ 22,512 |
Mexican 7.5% Special Mining Duty expense | 8,068 | 9,371 |
Withholding tax expense | 1,601 | 3,150 |
Deferred income tax expense (recovery) | 2,517 | (2,698) |
Deferred Mexican 7.5% Special Mining Duty expense | 64 | 293 |
Tax expenses (Total income taxes) | $ 34,604 | $ 32,628 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of tax rate (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Reconciliation of average effective tax rate and applicable tax rate | ||
Income (loss) before tax | $ 7,594 | $ 78,398 |
Statutory income tax rate | 26.80% | 26.80% |
Expected income tax | $ 2,036 | $ 21,036 |
Differences between Canadian and foreign tax rates | 6,442 | 4,117 |
Items not deductible for tax purposes | 4,508 | |
Items not deductible for tax purposes (credit) | 76 | |
Share based compensation | 674 | 107 |
Change in unrecognized deductible temporary differences | 3,964 | (10,928) |
True ups | 4,263 | 1,901 |
Effect of changes in foreign exchange rates | (7,806) | (2,371) |
Inflationary adjustment and other | (1,175) | 1,532 |
Mexican Special Mining Duty | 6,422 | 9,576 |
Withholding tax expense | 1,601 | 3,150 |
Tax impact of impairment of exploration property | 18,107 | |
Tax expenses (Total income taxes) | $ 34,604 | $ 32,628 |
Effective tax rate | 456% | 42% |
INCOME TAXES - Unrecognized ded
INCOME TAXES - Unrecognized deductible temporary differences (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
INCOME TAXES | ||
Unrecognized deductible temporary differences | $ 166,227 | $ 95,686 |
Mineral properties and exploration expenditures | ||
INCOME TAXES | ||
Unrecognized deductible temporary differences | 95,616 | 30,467 |
Equipment | ||
INCOME TAXES | ||
Unrecognized deductible temporary differences | 1,338 | 1,251 |
Site closure provisions | ||
INCOME TAXES | ||
Unrecognized deductible temporary differences | 995 | 356 |
Long term debt | ||
INCOME TAXES | ||
Unrecognized deductible temporary differences | 6,570 | |
Financing cost | ||
INCOME TAXES | ||
Unrecognized deductible temporary differences | 2,861 | 3,452 |
Non-capital losses | ||
INCOME TAXES | ||
Unrecognized deductible temporary differences | 64,700 | 53,436 |
Other | ||
INCOME TAXES | ||
Unrecognized deductible temporary differences | $ 154 | |
Unrecognized deductible temporary differences (liability) | $ 717 |
INCOME TAXES - Recognized defer
INCOME TAXES - Recognized deferred tax assets and liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
INCOME TAXES | ||
Recognized deferred tax assets (liabilities) | $ (193) | $ 2,405 |
Property, plant and equipment | ||
INCOME TAXES | ||
Recognized deferred tax assets (liabilities) | (3,722) | (216) |
Inventory | ||
INCOME TAXES | ||
Recognized deferred tax assets (liabilities) | (3,393) | |
Accrued liabilities | ||
INCOME TAXES | ||
Recognized deferred tax assets (liabilities) | 1,975 | |
Site closure provisions | ||
INCOME TAXES | ||
Recognized deferred tax assets (liabilities) | 1,810 | 2,363 |
Long term debt | ||
INCOME TAXES | ||
Recognized deferred tax assets (liabilities) | (317) | |
Non-capital losses | ||
INCOME TAXES | ||
Recognized deferred tax assets (liabilities) | 504 | 1,397 |
Intercompany debt | ||
INCOME TAXES | ||
Recognized deferred tax assets (liabilities) | (442) | (1,619) |
Special Mining Duty | ||
INCOME TAXES | ||
Recognized deferred tax assets (liabilities) | 2,972 | |
Other | ||
INCOME TAXES | ||
Recognized deferred tax assets (liabilities) | $ 420 | $ 480 |
INCOME TAXES - Temporary differ
INCOME TAXES - Temporary difference on investment in subsidiaries (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
INCOME TAXES | ||
Temporary differences associated with investments in subsidiaries for which a deferred income tax liability has not been recognized | $ 109 | $ 32 |
INCOME TAXES - Tax loss carryfo
INCOME TAXES - Tax loss carryforwards (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Canada | ||
INCOME TAXES | ||
Tax loss carryforwards | $ 62,776 | $ 61,214 |
Panama | ||
INCOME TAXES | ||
Tax loss carryforwards | 866 | 736 |
United States | ||
INCOME TAXES | ||
Tax loss carryforwards | $ 2,794 | $ 27,086 |
EVENTS AFTER THE REPORTING PE_2
EVENTS AFTER THE REPORTING PERIOD (Details) shares in Millions, $ in Millions | Feb. 25, 2024 USD ($) shares |
Shares issued after reporting period | |
EVENTS AFTER THE REPORTING PERIOD | |
Number of shares issued | shares | 2.2 |
Total assets | $ 8 |
Total equity | $ 8 |
Business combination | Contact Gold Corp | |
EVENTS AFTER THE REPORTING PERIOD | |
Exchange ratio | 0.0063 |
MATERIAL ACCOUNTING POLICIES -
MATERIAL ACCOUNTING POLICIES - Equipment (Details) | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
MATERIAL ACCOUNTING POLICIES | |
Impairment loss | $ 0 |
Vehicles | |
MATERIAL ACCOUNTING POLICIES | |
Useful life | 4 years |
Hardware and software | |
MATERIAL ACCOUNTING POLICIES | |
Useful life | 3 years |
COST OF SALES - Depletion and d
COST OF SALES - Depletion and depreciation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
COST OF SALES | ||
Depletion and depreciation | $ 28,649 | $ 14,953 |