DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Document Information [Line Items] | ||
Entity Registrant Name | Scully Royalty Ltd. | |
Document Type | 20-F | |
Document Period End Date | Dec. 31, 2021 | |
Entity File Number | 001-04192 | |
Document Annual Report | true | |
Entity Incorporation, State or Country Code | E9 | |
Entity Address, Address Line One | Unit 803, Dina House, Ruttonjee Centre | |
Entity Address, Address Line Two | 11 Duddell Street | |
Entity Address, City or Town | Hong Kong SAR | |
Entity Address, Country | CN | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Central Index Key | 0000016859 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding | 14,779,302 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | false | |
Document Accounting Standard | International Financial Reporting Standards | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | FY | |
Entity Shell Company | false | |
ICFR Auditor Attestation Flag | false | |
Title of 12(b) Security | Common Shares of US$0.001 par value each | |
Trading Symbol | SRL | |
Security Exchange Name | NYSE | |
Auditor Name | Smythe LLP | BDO LLP |
Auditor Firm ID | 995 | 1295 |
Auditor Location | Vancouver, Canada | London, United Kingdom |
Business Contact [Member] | ||
Document Information [Line Items] | ||
Contact Personnel Name | Michael J. Smith | |
Entity Address, Address Line One | Unit 803, Dina House Ruttonjee Centre | |
Entity Address, Address Line Two | 11 Duddell Street | |
Entity Address, City or Town | Hong Kong SAR | |
Entity Address, Country | CN | |
City Area Code | 844 | |
Local Phone Number | 331-3343 | |
Other Address [Member] | ||
Document Information [Line Items] | ||
Contact Personnel Name | H.S. Sangra | |
Entity Address, Address Line One | Sangra Moller LLP | |
Entity Address, Address Line Two | 1000 Cathedral Place, 925 West Georgia Street | |
Entity Address, City or Town | Vancouver | |
Entity Address, State or Province | BC | |
Entity Address, Country | CA |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - CAD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current Assets | ||
Cash | $ 54,873 | $ 63,552 |
Securities | 19,256 | 18,497 |
Trade receivables | 4,164 | 4,755 |
Tax receivables | 1,092 | 282 |
Other receivables | 64,446 | 39,518 |
Inventories | 1,100 | 1,413 |
Restricted cash | 142 | 175 |
Deposits, prepaid and other | 581 | 1,019 |
Total current assets | 145,654 | 129,211 |
Non-current Assets | ||
Securities | 3,625 | 3,721 |
Loan receivable | 1,237 | |
Real estate for sale | 12,867 | 13,954 |
Investment property | 34,430 | 36,908 |
Property, plant and equipment | 49,065 | 51,883 |
Interests in resource properties | 254,706 | 261,355 |
Deferred income tax assets | 9,619 | 10,856 |
Total non-current assets | 364,312 | 379,914 |
Total Assets | 509,966 | 509,125 |
Current Liabilities | ||
Account payables and accrued expenses | 11,346 | 15,680 |
Income tax liabilities | 1,002 | 457 |
Total current liabilities | 12,348 | 16,137 |
Non-current Liabilities | ||
Bond payables | 35,227 | 38,053 |
Loan payable | 6,817 | 5,223 |
Decommissioning obligations | 15,096 | 14,072 |
Deferred income tax liabilities | 67,461 | 66,115 |
Other | 483 | 801 |
Total non-current liabilities | 125,084 | 124,264 |
Total liabilities | 137,432 | 140,401 |
Equity | ||
Capital stock, at par value of US$0.001 per share and fully paid | 19 | 16 |
Additional paid-in capital | 312,468 | 312,471 |
Treasury stock | (2,643) | (2,643) |
Contributed surplus | 18,988 | 16,627 |
Retained earnings | 9,078 | 1,378 |
Accumulated other comprehensive income | 27,690 | 33,695 |
Shareholders' equity | 365,600 | 361,544 |
Non-controlling interests | 6,934 | 7,180 |
Total equity | 372,534 | 368,724 |
Total liabilities and equity | $ 509,966 | $ 509,125 |
CONSOLIDATED STATEMENTS OF FI_2
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | ||
Par value of capital stock | $ 0.001 | $ 0.001 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - CAD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||
Revenue | $ 71,291 | $ 59,432 | $ 113,267 | ||
Costs and expenses: | |||||
Costs of sales and services | 30,918 | 26,870 | 96,561 | ||
Selling, general and administrative | 21,144 | 19,901 | 22,573 | ||
Selling, general and administrative - share-based compensation - | 2,497 | 0 | 0 | ||
Finance costs | 1,935 | 1,881 | 1,243 | ||
Credit losses (reversal), net | 88 | (3,108) | 13,398 | ||
Exchange differences on foreign currency transactions, net (gain) loss | (2,838) | 2,709 | (3,724) | ||
Total | 53,744 | 48,253 | 130,051 | ||
Income (loss) before income taxes | 17,547 | 11,179 | (16,784) | ||
Income tax expense: | |||||
Income taxes | (2,289) | (4,893) | (482) | ||
Resource property revenue taxes | (7,887) | (6,074) | (1,137) | ||
Resource property (expense) recovery | (10,176) | (10,967) | (1,619) | ||
Net income (loss) for the year | 7,371 | 212 | (18,403) | ||
Net loss (income) attributable to non-controlling interests | 193 | 157 | (150) | ||
Net income (loss) attributable to owners of the parent company | $ 7,564 | $ 369 | $ (18,553) | ||
Earnings (loss) per share: | |||||
Basic (in dollars per share) | $ 0.51 | $ 0.03 | [1] | $ (1.26) | [1] |
Diluted (in dollars per share) | $ 0.51 | $ 0.03 | [1] | $ (1.26) | [1] |
Weighted average number of common shares outstanding | |||||
- Basic (in shares) | 14,779,302 | 14,779,302 | [1] | 14,765,938 | [1] |
- Diluted (in shares) | 14,908,312 | 14,779,302 | [1] | 14,765,938 | [1] |
[1] | * The amounts have been restated for the stock dividends distributed in the year ended December 31, 2021 (see Notes 17 and 21). |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||
Net income (loss) for the year | $ 7,371 | $ 212 | $ (18,403) |
Items that will be reclassified subsequently to profit or loss | |||
Exchange differences arising from translating financial statements of foreign operations | (6,217) | 7,219 | (13,197) |
Reclassification adjustment for exchange differences to statements of operations for subsidiaries deconsolidated | 215 | (1,758) | |
Net exchange difference | (6,217) | 7,434 | (14,955) |
Fair value (loss) gain on securities at fair value through other comprehensive income | (57) | 150 | (70) |
Reclassification of reversal of impairment charge to statement of operations | 219 | (97) | 66 |
Net fair value gain (loss) on securities at fair value through other comprehensive income | 162 | 53 | (4) |
Other comprehensive (loss) income | (6,055) | 7,487 | (14,959) |
Total comprehensive income (loss) for the year | 1,316 | 7,699 | (33,362) |
Comprehensive loss attributable to non-controlling interests | 243 | 233 | 138 |
Comprehensive income (loss) attributable to owners of the parent company | $ 1,559 | $ 7,932 | $ (33,224) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - CAD ($) $ in Thousands | Capital Stock and additional paid-in capital | Treasury Stock | Share-based Compensation | Retained Earnings (Deficit) | Securities at Fair Value Through Other Comprehensive Income | Currency Translation Adjustment | Share-holders' Equity | Non-controlling Interests | Total |
Balance at the beginning at Dec. 31, 2018 | $ 312,148 | $ (2,643) | $ 16,735 | $ 19,333 | $ (141) | $ 40,944 | $ 386,376 | $ 8,030 | $ 394,406 |
Balance (in shares) at Dec. 31, 2018 | 12,600,448 | (65,647) | |||||||
Net (loss) income | (18,553) | (18,553) | (18,403) | ||||||
Net income (loss) | 150 | (150) | |||||||
Issuance of shares in a subsidiary to non-controlling interest | 229 | 229 | 510 | 739 | |||||
Net fair value loss | (4) | ||||||||
Net fair value (loss) gain | (4) | (4) | (4) | ||||||
Exercise of stock options | $ (339) | 108 | (231) | (231) | |||||
Exercise of stock options (in shares) | 20,000 | ||||||||
Net exchange differences | (14,667) | (14,667) | (288) | (14,955) | |||||
Balance at the end at Dec. 31, 2019 | $ 312,487 | $ (2,643) | 16,627 | 1,009 | (145) | 26,277 | 353,612 | 8,402 | 362,014 |
Balance at the end (in shares) at Dec. 31, 2019 | 12,620,448 | (65,647) | |||||||
Net (loss) income | 369 | 369 | 212 | ||||||
Net income (loss) | (157) | 157 | |||||||
Issuance of shares in a subsidiary to non-controlling interest | 8 | 8 | |||||||
Dividends paid | (37) | (37) | |||||||
Disposition of a subsidiary | (960) | (960) | |||||||
Net fair value loss | 53 | ||||||||
Net fair value (loss) gain | 53 | 53 | 53 | ||||||
Net exchange differences | 7,510 | 7,510 | (76) | 7,434 | |||||
Balance at the end at Dec. 31, 2020 | $ 312,487 | $ (2,643) | 16,627 | 1,378 | (92) | 33,787 | 361,544 | 7,180 | 368,724 |
Balance at the end (in shares) at Dec. 31, 2020 | 12,620,448 | (65,647) | |||||||
Net (loss) income | 7,564 | 7,564 | 7,371 | ||||||
Net income (loss) | (193) | 193 | |||||||
Shares issued from stock dividends (Note 17) (in shares) | 2,236,133 | (11,632) | |||||||
Forfeiture of stock options | (136) | 136 | |||||||
Dividends payable to non-controlling interest | 3 | 3 | |||||||
Share based compensation | 2,497 | 2,497 | 2,497 | ||||||
Net fair value loss | 162 | ||||||||
Net fair value (loss) gain | 162 | 162 | 162 | ||||||
Net exchange differences | (6,167) | (6,167) | (50) | (6,217) | |||||
Balance at the end at Dec. 31, 2021 | $ 312,487 | $ (2,643) | $ 18,988 | $ 9,078 | $ 70 | $ 27,620 | $ 365,600 | $ 6,934 | $ 372,534 |
Balance at the end (in shares) at Dec. 31, 2021 | 14,856,581 | (77,279) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net income (loss) for the year | $ 7,371 | $ 212 | $ (18,403) |
Adjustments for: | |||
Depreciation, depletion and amortization | 11,023 | 11,470 | 8,287 |
Exchange differences on foreign currency transactions | (2,838) | 2,709 | (3,724) |
Loss (gain) on securities | 2,320 | (758) | (931) |
Gain on derivative contracts, net | (1,376) | ||
Loss (gain) on dispositions of subsidiaries, net | 546 | (2,243) | |
Share-based compensation | 2,497 | ||
Deferred income taxes | 2,074 | 4,798 | 98 |
Market value increase on commodity inventories | (160) | ||
Interest accretion | 332 | 143 | 743 |
Change in fair value of investment property and real estate held for sale | (407) | (757) | (3,122) |
Change in fair value of a loan payable measured at FVTPL | 1,616 | 549 | 979 |
Credit losses (reversal), net | 88 | (3,108) | 13,398 |
(Reversal of) write-downs of inventories | (19) | 469 | 1,822 |
Write-offs of intangible assets and prepaid | 25 | 18 | |
Gains on settlements and derecognition of liabilities | (390) | (2,600) | (1,168) |
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions: | |||
Short-term securities | (3,949) | (2,608) | (6,384) |
Receivables | (24,489) | (33,847) | (466) |
Inventories | 333 | 517 | 1,551 |
Restricted cash | 20 | (60) | 159 |
Deposits, prepaid and other | 415 | 97 | (468) |
Assets held for sale | 396 | ||
Account payables and accrued expenses | (1,685) | 521 | (157) |
Income tax liabilities | 563 | 26 | (35) |
Other | (136) | 385 | 3 |
Cash flows used in operating activities | (6,637) | (21,271) | (9,807) |
Cash flows from investing activities: | |||
Purchases of property, plant and equipment, net | (982) | (227) | (720) |
Proceeds from sales of investment property | 11 | 4,564 | |
Increase in loan receivables, net | (265) | (843) | |
Acquisition of indemnification asset | (6,737) | ||
Dispositions of subsidiaries, net of cash disposed | (873) | (1,902) | |
Other | 220 | ||
Cash flows (used in) provided by investing activities | (971) | 3,419 | (10,202) |
Cash flows from financing activities: | |||
Issuance of bonds payable | 36,511 | ||
Payments of commissions, fees and expenses on issuance of bonds payable | (1,078) | ||
Reductions in lease liabilities | (424) | (451) | (872) |
Exercise of stock options | 231 | ||
Dividends paid to non-controlling interests | (30) | ||
Other | (17) | ||
Cash flows (used in) provided by financing activities | (424) | (498) | 34,792 |
Exchange rate effect on cash | (647) | 3,628 | (4,269) |
(Decrease) increase in cash | (8,679) | (14,722) | 10,514 |
Cash and cash equivalents, beginning of year | 63,552 | 78,274 | 67,760 |
Cash and cash equivalents, end of year | 54,873 | 63,552 | 78,274 |
Supplemental cash flows disclosures (see Note 24) | |||
Interest received | 221 | 484 | 1,282 |
Dividends received | 244 | 11 | |
Interest paid | (1,747) | (1,880) | (342) |
Income taxes paid | $ (9,526) | $ (3,730) | $ (780) |
Nature of Business
Nature of Business | 12 Months Ended |
Dec. 31, 2021 | |
Nature of Business | |
Nature of Business | Note 1. Nature of Business Scully Royalty Ltd. (“Scully” or the “Company”) is incorporated under the laws of the Cayman Islands. Scully and the entities it controls are collectively known as the “Group” in these consolidated financial statements. The Group’s core asset is a 7% net revenue royalty interest in the Scully iron ore mine in Newfoundland & Labrador, Canada. Scully is listed on the New York Stock Exchange under the symbol SRL. The Company’s primary business office is Suite 803, 11 Duddell Street, Dina House, Ruttonjee Centre, Central, Hong Kong SAR China. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Basis of Presentation and Summary of Significant Accounting Policies | |
Basis of Presentation and Summary of Significant Accounting Policies | Note 2. Basis of Presentation and Summary of Significant Accounting Policies A. Basis of Presentation Basis of Accounting These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (the “IASB”). Scully complies with all the requirements of IFRS. The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied. These consolidated financial statements were prepared using going concern, accrual (except for cash flow information) and historical cost (except for investment property and certain financial assets and financial liabilities which are measured at fair value and certain inventories that are measured at fair value less costs to sell) bases. In assessing the Company’s ability to continue as a going concern and the appropriateness of assuming the going concern basis in the preparation of its consolidated financial statements, management considered the impact and potential impact from the outbreak of a novel coronavirus (“COVID-19”) in 2019 and the subsequent spread of the virus globally through 2020 and 2021 (see Note 2D(v)). The presentation currency of these consolidated financial statements is the Canadian dollar ($), rounded to the nearest thousand (except per share amounts and currency rates), unless otherwise indicated. Principles of Consolidation These consolidated financial statements include the accounts of Scully and entities it controls. The Company controls an investee if and only if it has all the following: (a) power over the investee; (b) exposure, or rights, to variable returns from its involvement with the investee; and (c) the ability to use its power over the investee to affect the amount of its returns. When the Group holds, directly or indirectly, more than 50% of the voting power of an investee, it is presumed that the Group controls the investee, unless it can be clearly demonstrated that this is not the case. Subsidiaries are consolidated from the date of their acquisition, being the date on which the Group obtains control, and continue to be consolidated until the date that such control ceases. All intercompany balances and transactions, including unrealized profits arising from intragroup transactions, have been eliminated in full. Unrealized losses are eliminated unless the transaction provides evidence of an impairment of the asset transferred. On the acquisition date, a non-controlling interest is measured at either its fair value or its proportionate share in the recognized amounts of the subsidiary’s identifiable net assets, on a transaction-by-transaction basis. Subsequently, the non-controlling interest increases or decreases for its share of changes in equity since the acquisition date. After initial consolidation of a subsidiary, when the proportion of equity held by non-controlling interests changes, the Group, as long as it continues to control the subsidiary, adjusts the carrying amounts of the controlling and non-controlling interests to reflect the changes in their relative interests in the subsidiary. The Group recognizes directly in equity any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received and attributes such difference to the owners of Scully. Note 2. Basis of Presentation and Summary of Significant Accounting Policies (continued) When the Group loses control of a subsidiary it: (a) derecognizes (i) the assets (including any goodwill) and liabilities of the subsidiary at their carrying amounts at the date when control is lost and (ii) the carrying amount of any non-controlling interests in the former subsidiary at the date when control is lost (including any components of other comprehensive income attributable to them); (b) recognizes (i) the fair value of the consideration received, if any, from the transaction, event or circumstances that resulted in the loss of control, (ii) if the transaction, event or circumstances that resulted in the loss of control involves a distribution of shares of the subsidiary to owners in their capacity as owners, that distribution and (iii) any investment retained in the former subsidiary at its fair value at the date when control is lost; (c) reclassifies to profit or loss, or transfers directly to retained earnings if required by IFRS, the amounts recognized in other comprehensive income in relation to the subsidiary; and (d) recognizes any resulting difference as a gain or loss under costs of sales and services in profit or loss attributable to the owners of Scully. The financial statements of Scully and its subsidiaries used in the preparation of these consolidated financial statements are prepared as of the same date, using uniform accounting policies for like transactions and other events in similar circumstances. Foreign Currency Translation The presentation currency of the Group’s consolidated financial statements is the Canadian dollar. Scully conducts its business throughout the world through its foreign operations. Foreign operations are entities that are subsidiaries or branches, the activities of which are based or conducted in countries or currencies other than those of Scully. Functional currency is the currency of the primary economic environment in which an entity operates and is normally the currency in which the entity primarily generates and expends cash. Foreign currency is a currency other than the functional currency of the entity. The functional currencies of the Company and its subsidiaries and branches primarily comprise the Canadian dollar, Euro (“EUR” or “€”) and United States dollar (“US$”). Reporting foreign currency transactions in the functional currency A foreign currency transaction is a transaction that is denominated or requires settlement in a foreign currency. A foreign currency transaction is recorded, on initial recognition in an entity’s functional currency, by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction. At the end of each reporting period: (a) foreign currency monetary items are translated using the closing rate; (b) non-monetary items denominated in a foreign currency that are measured in terms of historical cost are translated using the exchange rate at the date of the transaction; and (c) foreign currency non-monetary items that are measured at fair value are translated using the exchange rates at the date when the fair value was determined. Exchange differences arising on the settlement of monetary items or on translating monetary items at rates different from those at which they were translated on initial recognition during the period or in previous periods are recognized in profit or loss in the period in which they arise, except for exchange differences arising on a monetary item that forms part of a reporting entity’s net investment in a foreign operation which are initially recorded in other comprehensive income in the consolidated financial statements and reclassified from equity to profit or loss on disposal of the net investment. When a gain or loss on a non-monetary item is recognized in other comprehensive income, any exchange component of that gain or loss is recognized in other comprehensive income. Conversely, when a gain or loss on a non-monetary item is recognized in profit or loss, any exchange component of that gain or loss is recognized in profit or loss. Note 2. Basis of Presentation and Summary of Significant Accounting Policies (continued) Use of a presentation currency other than the functional currency When an entity presents its financial statements in a currency that differs from its functional currency, the results and financial position of the entity are translated into the presentation currency using the following procedures: (a) assets and liabilities for each statement of financial position presented are translated at the closing rate at the date of the statement of financial position; (b) income and expenses for each statement of operations presented are translated at exchange rates at the dates of the transactions or, for practical reasons, the average exchange rates for the periods when they approximate the exchange rates at the dates of the transactions; (c) individual items within equity are translated at either the historical exchange rates when practical or at the closing exchange rates at the date of the statement of financial position; and (d) all resulting exchange differences are recognized in other comprehensive income. The following table sets out exchange rates for the translation of the Euro and United States dollar, which represented the major trading currencies of the Group, into the Canadian dollar: EUR US$ Closing rate at December 31, 2021 1.4391 1.2678 Average rate for the year 2021 1.4828 1.2535 Closing rate at December 31, 2020 1.5608 1.2732 Average rate for the year 2020 1.5298 1.3415 Closing rate at December 31, 2019 1.4583 1.2988 Average rate for the year 2019 1.4856 1.3269 Fair Value Measurement Certain assets and liabilities of the Group are measured at fair value (see Note 2B). Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement is for a particular asset or liability. Therefore, when measuring fair value, the Group takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. A fair value measurement assumes that the transaction to sell the asset or transfer the liability takes place either: (a) in the principal market for the asset or liability; or (b) in the absence of a principal market, in the most advantageous market for the asset or liability. The Group measures the fair value of an asset or a liability using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data is available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. IFRS 13, Fair Value Measurement , Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Note 2. Basis of Presentation and Summary of Significant Accounting Policies (continued) Level 3 inputs are unobservable inputs for the asset or liability. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgment, considering factors specific to the asset or liability. Non-current Assets Held for Sale A non-current asset (or disposal group) is classified as held for sale if its carrying amount will be recovered principally through a sale transaction rather than through continuing use. For this to be the case, the asset (or disposal group) must be available for immediate sale in its present condition subject only to terms that are usual and customary for the sale of such asset (or disposal group), the appropriate level of management must be committed to a plan to sell the asset (or disposal group) and an active program to locate a buyer and complete the plan must have been initiated. Further, the asset (or disposal group) must be actively marketed for sale at a price that is reasonable in relation to its current fair value and the sale is highly probable to complete within one year from the date of classification, except as permitted under certain events and circumstances. If the aforesaid criteria are no longer met, the Group ceases to classify the asset (or disposal group) as held for sale. Non-current assets (and disposal groups) classified as held for sale are measured at the lower of their carrying amounts and fair values less costs to sell. The Group does not depreciate or amortize a non-current asset while it is classified as held for sale. Use of Estimates and Assumptions and Measurement Uncertainty The timely preparation of the consolidated financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Management’s best estimates are based on the facts and circumstances available at the time estimates are made, historical experience, general economic conditions and trends and management’s assessment of probable future outcomes of these matters. Actual results could differ from these estimates and such differences could be material. For critical judgments in applying accounting policies and major sources of estimation uncertainty. See Notes 2C and 2D. B. Significant Accounting Policies (i) Financial Instruments Financial assets and financial liabilities are recognized in the consolidated statement of financial position when the Group becomes a party to the financial instrument contract. A financial asset is derecognized either when the Group has transferred the financial asset and substantially all the risks and rewards of ownership of the financial asset or when the contractual rights to the cash flows expire. A financial liability is derecognized when the obligation specified in the contract is discharged, cancelled or expired. The Group classifies its financial assets into the following measurement categories: (a) subsequently measured at fair value (either through other comprehensive income (“FVTOCI”) or through profit or loss (“FVTPL”) and (b) subsequently measured at amortized cost. The classification of financial assets depends on the Group’s business model for managing the financial assets and the terms of the contractual cash flows. The Group classifies its financial liabilities as subsequently measured at amortized cost, except for financial liabilities at FVTPL. Change in the fair value of a loan payable measured at FVTPL is included in costs of sales and services. Regular way purchases and sales of financial assets are accounted for at the settlement date. Note 2. Basis of Presentation and Summary of Significant Accounting Policies (continued) When a financial asset or financial liability is recognized initially, the Group measures it at its fair value plus, in the case of a financial asset or financial liability not at FVTPL, transaction costs that are directly attributable to the acquisition or issue of the financial asset or financial liability. Transaction costs related to the acquisition or issue of a financial asset or financial liability at FVTPL are expensed as incurred. The subsequent measurement of a financial instrument and the recognition of associated gains and losses are determined by the financial instrument classification. A gain or loss on a financial asset or financial liability classified as at FVTPL is recognized in profit or loss for the period in which it arises. A gain or loss on an asset measured at FVTOCI is recognized in other comprehensive income, except for impairment losses, until the financial asset is derecognized, at which time the cumulative gain or loss previously recognized in accumulated other comprehensive income is recognized in profit or loss for the period. For financial assets and financial liabilities carried at amortized cost, a gain or loss is recognized in profit or loss when the financial asset or financial liability is derecognized or impaired and through the amortization process. Net gains or net losses on financial instruments at FVTPL do not include interest or dividend income. Whenever quoted market prices are available, bid prices are used for the measurement of fair value of financial assets while ask prices are used for financial liabilities. When the market for a financial instrument is not active, the Group establishes fair value by using a valuation technique. Valuation techniques include using recent arm’s length market transactions between knowledgeable, willing parties, if available; reference to the current fair value of another financial instrument that is substantially the same; discounted cash flow analysis; option pricing models; and other valuation techniques commonly used by market participants to price the financial instrument. (ii) Cash Cash include cash on hand and cash at banks which have maturities of three months or less from the date of acquisition and are generally interest-bearing. Restricted cash refers to money that is held for a specific purpose and therefore not available to the Group for immediate or general business use. Restricted cash is accounted for as a separate item from cash on the Group’s consolidated statements of financial position. (iii) Securities Investments in equity securities are measured at FVTPL. Debt securities which are held within a business model whose objective is to collect the contractual cash flows and sell the debt securities, and have contractual cash flows that are solely payments of principal and interest on the principal outstanding are measured at FVTOCI. A gain or loss on a financial asset measured at FVTOCI is recognized in other comprehensive income, except for impairment gains or losses and foreign exchange gains and losses, until the financial asset is derecognized. When the financial asset is derecognized, the cumulative gain or loss previously recognized in other comprehensive income is reclassified from equity to profit or loss as a reclassification adjustment. Interest calculated using the effective interest method is recognized in profit or loss. Debt securities which are not held within a business model whose objective is to collect the contractual cash flows and sell the debt securities, or that do not have contractual cash flows that are solely payments of principal and interest on the principal outstanding are measured at FVTPL. Gains and losses on sales of securities are calculated on the average cost basis. Note 2. Basis of Presentation and Summary of Significant Accounting Policies (continued) (iv) Securities and Financial Liabilities – Derivatives A derivative is a financial instrument or other contract with all three of the following characteristics: (a) its value changes in response to the change in a specified interest rate, financial instrument price, product price, foreign exchange rate, index of prices or rates, credit rating or credit index, or other variable; (b) it requires no initial net investment or an initial net investment that is smaller than would be required for other types of contracts that would be expected to have a similar response to changes in market factors; and (c) it is settled at a future date. A derivative financial instrument is either exchange-traded or negotiated. A derivative financial instrument is included in the consolidated statements of financial position as a security (i.e. financial asset) or a financial liability and measured at FVTPL. The recognition and measurement of a derivative financial instrument does not apply to a contract that is entered into and continues to be held for the purpose of the receipt or delivery of a non-financial item in accordance with the Group’s expected purchase, sale or usage requirements, unless the Group, as allowed under IFRS 9, Financial Instruments Where the Group has both the legal right and intent to settle derivative assets and liabilities simultaneously with the counterparty, the net fair value of the derivative financial instruments is reported as an asset or liability, as appropriate. Changes in the fair values of derivative financial instruments that do not qualify for hedge accounting are recognized in profit or loss as they arise. (v) Receivables Generally, trade and other receivables are measured at amortized cost. Receivables are net of an allowance for credit losses, if any. The Group performs ongoing credit evaluations of its customers and recognizes a loss allowance for expected credit losses. Receivables are considered past due on an individual basis based on the terms of the contracts. (vi) Allowance for Credit Losses The Group recognizes and measures a loss allowance for expected credit losses on a financial asset which is measured at amortized cost or at FVTOCI, including a lease receivable, a contract asset or a loan commitment and a financial guarantee contract. The impairment methodology applied depends on whether there has been a significant increase in credit risk since initial recognition. To assess whether there is a significant increase in credit risk, the Group compares the risk of a default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition based on all information available, and reasonable and supportive forward-looking information. When there is a significant increase in credit risk or for credit-impaired financial assets, the loss allowance equals the lifetime expected credit losses which is defined as the expected credit losses that result from all possible default events over the expected life of a financial instrument. If, at the reporting date, the credit risk on a financial asset has not increased significantly since initial recognition, the Group measures the loss allowance for the financial instrument at an amount equal to the 12-month expected credit losses which is defined as the portion of lifetime expected credit losses that represent the expected credit losses that result from default events on the financial instrument that are possible within the 12 months after the reporting date. As required by IFRS 9, the Group always measures the loss allowance at an amount equal to lifetime expected credit losses for trade receivables and contract assets that result from transactions that are within the scope of IFRS 15, Revenue from Contracts with Customers Note 2. Basis of Presentation and Summary of Significant Accounting Policies (continued) The Group’s allowance for credit losses is maintained at an amount considered adequate to absorb expected or estimated credit-related losses. Such allowance reflects management’s best estimate of the losses in the Group’s financial assets and judgments about economic conditions. Estimates and judgments could change in the near term, and could result in a significant change to a recognized allowance. An allowance for credit losses is increased by provisions, which are recognized in profit or loss and reduced by write-offs net of any recoveries. Write-offs are generally recorded after all reasonable restructuring or collection activities have taken place and there is no realistic prospect of recovery. (vii) Inventories Inventories principally consist of raw materials, work-in-progress, and finished goods. Inventories, other than commodities products, are recorded at the lower of cost and net realizable value. Cost, where appropriate, includes an allocation of manufacturing overheads incurred in bringing inventories to their present location and condition and is assigned by using the first-in, first-out or weighted average cost formula, depending on the class of inventories. Net realizable value represents the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution. The amount of any write-down of inventories to net realizable value and all losses of inventories are recognized as an expense in the period the write-down or loss occurs. The reversal of a write-down of inventories arising from an increase in net realizable value is recognized as a reduction in the amount of costs of sales and services in the period in which the reversal occurs. Commodity products acquired by the Group as a broker-trader in the Group’s merchant banking activities with the purpose of selling in the near future and generating a profit from fluctuations in price or broker-traders’ margin are measured at fair value less costs to sell. Fair values of the Group’s inventories are determined by reference to their contractual selling prices or quoted prices in marketplaces in the absence of a contract (Level 1 of the fair value hierarchy), in accordance with IFRS 13. (viii) Real Estate for Sale Real estate for sale is real estate intended for sale in the ordinary course of business or in the process of construction or development for such sale. The Group’s real estate for sale forms part of the security package for the €25,000 in principal amount of bonds (see Note 15) issued by Merkanti Holding plc (“Merkanti Holding”) in the year ended December 31, 2019, and to the extent that any sales of these properties, in whole or in part, cause the security to fall below a certain ratio, proceeds of said sale, up to an amount of the collateral shortfall, are required to be placed as cash collateral with the bondholder trustee until maturity. Real estate for sale is measured at the lower of cost (on a specific item basis) and net realizable value. Net realizable value is estimated by reference to sale proceeds of similar properties sold in the ordinary course of business less all estimated selling expenses around the reporting date, or by management estimates based on prevailing market conditions. The amount of any write-down of properties to net realizable value is recognized as an expense in the period the write-down occurs. The reversal of a write-down arising from an increase in net realizable value is recognized in the period in which the reversal occurs. All of the Group’s real estate is located in Europe. (ix) Investment Property Investment property is property that is held for generating rental income or for capital appreciation or both, rather than for: (a) use in the production or supply of goods or services or for administrative purposes; or (b) sale in the ordinary course of business. The Group’s investment property comprises freehold land and buildings. The Group’s investment property forms part of the security package for the €25,000 in principal amount of bonds (see Note 15) issued by Merkanti Holding in the year ended December 31, 2019. Investment property is initially recognized at cost including related transaction costs. After initial recognition, investment property is measured at fair value, with changes in fair value recognized in profit or loss in the period in which they arise. Note 2. Basis of Presentation and Summary of Significant Accounting Policies (continued) The Group determines fair value without any deduction for transaction costs it may incur on sale or other disposal. Fair value of the Group’s investment property is based on valuations prepared annually by external evaluators in accordance with guidance issued by the International Valuation Standards Council and reviewed by the Group, or these valuations are updated by management when there are no significant changes in the inputs to the valuation prepared by external evaluators in the preceding year, in accordance with guidance on fair value in IFRS 13. (x) Property, Plant and Equipment Property, plant and equipment are carried at cost, net of accumulated depreciation and, if any, accumulated impairment losses. The initial cost of an item of property, plant and equipment comprises its purchase price or construction cost, any costs directly attributable to bringing the asset into operation, the initial estimate of any decommissioning obligation, if any, and, for qualifying assets, borrowing costs. The purchase price or construction cost is the aggregate amount paid and the fair value of any other consideration given to acquire the asset. Where an item of property, plant and equipment or part of the item that was separately depreciated is replaced and it is probable that future economic benefits associated with the replacement item will flow to the Group, the cost of the replacement item is capitalized and the carrying amount of the replaced asset is derecognized. All other replacement expenditures are recognized in profit or loss when incurred. Inspection costs associated with major maintenance programs are capitalized and amortized over the period to the next inspection. All other maintenance costs are expensed as incurred. When a right-of-use asset is acquired under a lease contract, the asset is measured at cost at the commencement date. The cost of the right-of-use asset comprises: (a) the amount of the initial measurement of the lease liability; (b) any lease payments made at or before the commencement date, less any lease incentives received; (c) any initial direct costs incurred by the Group; and (d) an estimate of costs to be incurred by the Group in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease, unless those costs are incurred to produce inventories. After the commencement date, the Group measures the right-of-use asset applying a cost model whereby the Group measures the right-of-use asset at cost less any accumulated depreciation and any accumulated impairment losses and adjusts it for any remeasurement of the lease liabilities reflecting any reassessment, lease modifications or revised in-substance fixed lease payments. The Group elected to apply IFRS 16, Leases Leases, Carrying amount of property, plant and equipment as at December 31, 2018 $ 58,325 Adjustment for the lease liabilities under IFRS 16 on the date of initial application 2,911 Carrying amount of property, plant and equipment recognized on the initial adoption of IFRS 16 as at January 1, 2019 $ 61,236 Note 2. Basis of Presentation and Summary of Significant Accounting Policies (continued) The depreciable amounts of the Group’s property, plant, and equipment (i.e. the costs of the assets less their residual values) are depreciated according to the following estimated useful lives and methods, other than the right-of-use assets which are depreciated from lease commencement dates to the earlier of the end of their useful lives or the end of their lease terms: Lives Method Processing plant and equipment 5 to 20 years straight-line Refinery and power plants 20 to 30 years straight-line Office equipment and other 3 to 10 years straight-line Office premises 2 to 10 years straight-line Depreciation expense is included in costs of sales and services or selling, general and administrative expense, whichever is appropriate. The residual value and the useful life of an asset are reviewed at least at each financial year-end and, if expectations differ from previous estimates, the changes, if any, are accounted for as a change in an accounting estimate in accordance with IAS 8, Accounting Policies, Changes in Accounting Estimates and Errors The carrying amount of an item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the item) is included in profit or loss in the period in which the item is derecognized. (xi) Interests in Resource Properties The Group’s interests in resource properties are mainly comprised of an interest in the Scully iron ore mine, and to a lesser extent, exploration and evaluation assets (comprising hydrocarbon probable reserves and hydrocarbon undeveloped lands) and hydrocarbon development and production assets. (a) Exploration and evaluation assets Exploration and evaluation costs, including the costs of acquiring undeveloped land and drilling costs are initially capitalized until the drilling of the well is complete and the results have been evaluated in order to determine the technical feasibility and commercial viability of the asset. Technical feasibility and commercial viability are considered to be determinable when proved and/or probable reserves are determined to exist. When proved and/or probable |
Disclosure on the Group's Objec
Disclosure on the Group's Objectives, Policies and Processes for Managing Its Capital Structure | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure on the Group's Objectives, Policies and Processes for Managing Its Capital Structure | |
Disclosure on the Group's Objectives, Policies and Processes for Managing Its Capital Structure | Note 3. Disclosure on the Group’s Objectives, Policies and Processes for Managing Its Capital Structure The Group’s objectives when managing capital are to: (a) safeguard the entity’s ability to continue as a going concern so that it can continue to provide returns for shareholders and benefits for other stakeholders; (b) provide an adequate return to shareholders by pricing products and services commensurately with the level of risk; and (c) maintain a flexible capital structure which optimizes the cost of capital at acceptable risk. The Group allocates capital in proportion to risk. The Group manages the capital structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares, or issue new debt. Consistent with others in its industry, the Group monitors its capital on the basis of the debt-to-adjusted capital ratio and long-term debt-to-equity ratio. The debt-to-adjusted capital ratio is calculated as net debt divided by adjusted capital. Net debt is calculated as total debt less cash. Adjusted capital comprises all components of shareholders’ equity. The long-term debt-to-equity ratio is calculated as long-term debt divided by shareholders’ equity. As at December 31: 2021 2020 Total debt $ 35,227 $ 38,053 Less: cash (54,873) (63,552) Net debt Not applicable Not applicable Shareholders’ equity 365,600 361,544 Net debt-to-adjusted capital ratio Not applicable Not applicable As at December 31: 2021 2020 Long-term debt $ 35,227 $ 38,053 Shareholders’ equity 365,600 361,544 Long-term debt-to-equity ratio 0.10 0.11 The above tables do not include: (i) a non-interest bearing long-term loan payable of $6,817 as at December 31, 2021 (2020: $5,223), which does not have a fixed repayment date; and (ii) long-term lease liabilities of $476 as at December 31, 2021 (2020: $791). During 2021, the Group’s strategy, which was unchanged from 2020, was to maintain the debt-to-adjusted capital ratio and the long-term debt-to-equity ratio at a manageable level. The ratios were stable between 2021 and 2020. |
Assets Classified as Held for S
Assets Classified as Held for Sale | 12 Months Ended |
Dec. 31, 2021 | |
Assets Classified as Held for Sale | |
Assets Classified as Held for Sale | Note 4. Assets Classified as Held for Sale Year 2021 : Year 2020 : Year 2019 : |
Business Segment Information
Business Segment Information | 12 Months Ended |
Dec. 31, 2021 | |
Business Segment Information | |
Business Segment Information | Note 5. Business Segment Information The Group’s assets include its iron ore royalty, financial services and other resource interests and other proprietary investments. In addition, the Group owns other merchant banking assets and seeks to invest in businesses or assets whose intrinsic value is not properly reflected. The Group’s investing activities are generally not passive. The Group actively seeks investments where its financial expertise and management can add or unlock value. The Group currently has three separate and independently managed operating subgroups underneath its corporate umbrella. In reporting to management, the Group’s operating results are currently categorized into the following operating segments: Royalty, Industrial, Merchant Banking and All Other segments which include corporate activities. Basis of Presentation In reporting segments, certain of the Group’s business lines have been aggregated where they have similar economic characteristics and are similar in each of the following areas: (a) the nature of the products and services; (b) the methods of distribution; and (c) the types or classes of customers/clients for the products and services. The Group’s Royalty segment includes an interest in the Scully iron ore mine in the Province of Newfoundland and Labrador, Canada. The Group’s Industrial segment includes multiple projects in resources and services around the globe. It seeks opportunities to benefit from long-term industrial and services assets, including natural gas, with a focus on East Asia. The Group’s Merchant Banking segment has a subsidiary with its bonds listed on the Malta Stock Exchange and comprises regulated merchant banking businesses with a focus on Europe. In addition, the Merchant Banking segment holds two industrial real estate parks in Europe. The All Other segment includes the Group’s corporate and small entities whose quantitative amounts do not exceed 10% of any of the Group’s: (a) reported revenue; (b) net income; or (c) total assets. The accounting policies of the operating segments are the same as those described in the summary of significant accounting policies in Note 2B. The chief operating decision maker evaluates performance on the basis of income or loss from operations before income taxes and does not consider acquisition accounting adjustments in assessing the performance of the Group’s reporting segments. The segment information presented below is prepared according to the following methodologies: (a) revenue and expenses directly associated with each segment are included in determining pre-tax earnings; (b) intersegment sales and transfers are accounted for as if the sales or transfers were to third parties at current market prices; (c) certain selling, general and administrative expenses paid by corporate, particularly incentive compensation and share-based compensation, are not allocated to reporting segments; (d) all intercompany investments, receivables and payables are eliminated in the determination of each segment’s assets and liabilities; (e) deferred income tax assets and liabilities are not allocated; and (f) gains or losses on dispositions of subsidiaries which include reclassification of realized cumulative translation adjustments from equity to profit or loss on disposals of subsidiaries, write-offs of intercompany accounts, changes in intercompany account balances and cash used (received) in acquisition (disposition) of a subsidiary are allocated to corporate and included within the Group's All Other segment. Note 5. Business Segment Information (continued) Segment Operating Results Year ended December 31, 2021 Merchant Royalty Industrial Banking All Other Total Revenue from external customers $ 40,335 $ 23,428 $ 6,527 $ 1,001 $ 71,291 Intersegment sale — 3,385 6,663 4,371 14,419 Interest expense 2 202 1,715 16 1,935 Depreciation, depletion and amortization 4,911 5,754 357 1 11,023 Income (loss) before income taxes 26,892 (4,739) 736 (5,342) 17,547 Year ended December 31, 2020 Merchant Royalty Industrial Banking All Other Total Revenue from external customers $ 31,360 $ 17,666 $ 10,406 $ — $ 59,432 Intersegment sale — 62 2,927 737 3,726 Interest expense — 31 1,834 16 1,881 Depreciation, depletion and amortization 5,225 5,833 410 2 11,470 Income (loss) before income taxes 25,293 (1,229) 832 (13,717) 11,179 Year ended December 31, 2019 Merchant Royalty Industrial Banking All Other Total Revenue from external customers $ 5,496 $ 100,184 $ 7,565 $ 22 $ 113,267 Intersegment sale — 6 3,455 948 4,409 Interest expense — 323 601 26 950 Depreciation, depletion and amortization 1,628 6,340 261 58 8,287 Income (loss) before income taxes 4,419 (15,840) 4,800 (10,163) (16,784) As at December 31, 2021 Merchant Royalty Industrial Banking All Other Total Segment assets $ 216,900 $ 148,426 $ 96,934 $ 47,706 $ 509,966 As at December 31, 2020 Merchant Royalty Industrial Banking All Other Total Segment assets $ 226,645 $ 153,240 $ 107,440 $ 21,800 $ 509,125 As at December 31, 2021 Merchant Royalty Industrial Banking All Other Total Segment liabilities $ 49,566 $ 44,703 $ 42,480 $ 683 $ 137,432 As at December 31, 2020 Merchant Royalty Industrial Banking All Other Total Segment liabilities $ 53,519 $ 36,437 $ 49,645 $ 800 $ 140,401 Note 5. Business Segment Information (continued) Year ended December 31, 2021 Merchant Royalty Industrial Banking All Other Total Cash provided by (used in) operating activities $ 27,400 $ 1,836 $ 260 $ (36,133) $ (6,637) Cash used in investing activities — (1) (970) — (971) Cash used in financing activities — (208) (216) — (424) Exchange rate effect on cash (2) 476 (3,389) 2,268 (647) Change in cash $ 27,398 $ 2,103 $ (4,315) $ (33,865) $ (8,679) Year ended December 31, 2021 Merchant Royalty Industrial Banking All Other Total Cash provided by (used in) operating activities $ 11,394 $ 2,298 $ (3,620) $ (31,343) $ (21,271) Cash (used in) provided by investing activities — (111) 4,185 (655) 3,419 Cash provided by (used in) financing activities 80 (284) (197) (97) (498) Exchange rate effect on cash (35) 1,461 4,055 (1,853) 3,628 Change in cash $ 11,439 $ 3,364 $ 4,423 $ (33,948) $ (14,722) Year ended December 31, 2020 Merchant Royalty Industrial Banking All Other Total Cash (used in) provided by operating activities $ (98) $ 1,678 $ (2,685) $ (8,702) $ (9,807) Cash used in investing activities — (7,262) (1,174) (1,766) (10,202) Cash (used in) provided by financing activities — (532) 35,133 191 34,792 Exchange rate effect on cash — (2,710) (1,771) 212 (4,269) Change in cash $ (98) $ (8,826) $ 29,503 $ (10,065) $ 10,514 Geographic Information Due to the highly integrated nature of international products and services, merchant banking activities and markets, and a significant portion of the Group’s activities requiring cross-border coordination in order to serve the Group’s customers and clients, the methodology for allocating the Group’s profitability to geographic regions is dependent on estimates and management judgment. Geographic results are generally determined as follows: Segment Basis for attributing revenue Royalty Locations of operations Industrial Locations of external customers or the reporting units, whichever is appropriate Merchant Banking Locations of external customers or the reporting units, whichever is appropriate All Other Locations of the reporting units Note 5. Business Segment Information (continued) Due to the nature of cross-border business, the Group presents its geographic information by geographic regions, instead of by countries. The following table presents revenue from external customers by geographic region of such customers, locations of operations or the reporting units, whichever is appropriate: Years ended December 31: 2021 2020 2019 Canada $ 56,609 $ 39,493 $ 13,730 Africa 3,971 3,358 4,114 Americas 5,263 8,877 5,880 Asia 286 604 1,909 Europe 5,162 7,100 87,634 $ 71,291 $ 59,432 $ 113,267 Except for the geographic concentrations as indicated in the above table and a customer in the Royalty segment located in Canada representing approximately 56%, 53% and 5%, respectively, and a customer of a former subsidiary in the Industrial segment located in Slovakia representing approximately nil%, nil% and 13%, respectively, of the Group’s revenue for the years ended December 31, 2021, 2020 and 2019, there were no other revenue concentrations during the years ended December 31, 2021, 2020 and 2019. The following table presents non-current assets other than financial instruments, deferred income tax assets and other non-current assets by geographic area based upon the location of the assets. As at December 31: 2021 2020 Canada $ 276,081 $ 284,151 Americas 5 6 Africa 25,835 27,641 Asia 1 5 Europe 49,146 52,297 $ 351,068 $ 364,100 |
Securities
Securities | 12 Months Ended |
Dec. 31, 2021 | |
Securities | |
Securities | Note 6. Securities As at December 31: 2021 2020 Short-term securities Equity securities at FVTPL, publicly traded $ 4,939 $ 2,509 Investment funds at FVTPL, unlisted 2,761 4,096 Debt securities at FVTPL, unlisted 770 873 Debt securities at FVTOCI, publicly traded 10,786 11,019 $ 19,256 $ 18,497 Long-term securities Equity securities in an affiliate at FVTPL, unlisted $ 3,625 $ 3,721 Investment funds comprise capital provision investments which are financial assets measured at FVTPL. They are related to the provision of capital in connection with litigation finance and represent the Group's contributions plus or minus fair valuation adjustments. Debt securities at FVTOCI included sovereign bonds issued by a government of $10,461 and $10,845 respectively, as at December 31, 2021 and 2020, which represented 54% and 59%, respectively, of total short-term securities. |
Trade Receivables
Trade Receivables | 12 Months Ended |
Dec. 31, 2021 | |
Trade Receivables | |
Trade Receivables | Note 7. Trade Receivables As at December 31: 2021 2020 Trade receivables, gross amount $ 4,300 $ 4,803 Less: Allowance for expected credit losses (136) (48) Trade receivables, net amount $ 4,164 $ 4,755 All trade receivables comprise accounts from contracts with customers. As at December 31, 2021, the Group recognized a loss allowance of $136 (2020: $48) against its trade receivables. The movements in the loss allowance during the years ended December 31, 2021 and 2020 were as follows: Equal to lifetime expected credit Losses Financial assets that are credit-impaired at year-end Loss allowance: as at January 1, 2020 $ 46 Additions for the year 2 Loss allowance: as at December 31, 2020 48 Additions for the year 124 Charge-off for the year (32) Exchange effect (4) Loss allowance: as at December 31, 2021 $ 136 In accordance with IFRS 9, management reviews the expected credit losses for the following twelve months based upon, among other things, the credit-worthiness of the exposure, collateral and other risk mitigation instruments, and the nature of the underlying business transaction. For further discussions on credit risk, see Note 26. |
Other Receivables
Other Receivables | 12 Months Ended |
Dec. 31, 2021 | |
Other Receivables | |
Other Receivables | Note 8 . Other Receivables As at December 31: 2021 2020 Royalty receivables $ 5,837 $ 10,108 Interest receivables 364 185 Contract assets under contracts with customers 575 106 Loans and current accounts* (net of allowance of $nil as of both December 31, 2021 and 2020, respectively) 47,745 21,620 Indemnification asset* 6,756 6,756 Other 3,169 743 $ 64,446 $ 39,518 * The Group had various amounts owing from an affiliate controlled by the Chairman of the Company (see Note 25). Other receivables primarily arise in the normal course of business and are expected to be collected within one year from the reporting date. Royalty receivables were due from a customer in the Royalty segment (see Note 5) and were collected in January the following year. Note 8. Other Receivables (continued) Contract assets The movements of contract assets under contracts with customers for the years ended December 31, 2021 and 2020 were as follows: 2021 2020 Balance, beginning of the year $ 106 $ — Reclassification to revenues (106) — A change in the time frame for a right to consideration to become unconditional 575 106 Balance, end of the year $ 575 $ 106 For further discussions on credit risk, see Note 26. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2021 | |
Inventories | |
Inventories | Note 9. Inventories As at December 31: 2021 2020 Raw materials $ 991 $ 1,358 Work-in-progress 109 55 $ 1,100 $ 1,413 |
Investment Property
Investment Property | 12 Months Ended |
Dec. 31, 2021 | |
Investment Property | |
Investment Property | Note 10. Investment Property All of the Group’s investment property is located in Europe and forms part of the security granted in connection with bonds issued by a subsidiary of the Group (see Note 15). Changes in investment property included in non-current assets: 2021 2020 Balance, beginning of year $ 36,908 $ 38,205 Change in fair value during the year 407 760 Disposals (7) (4,567) Currency translation adjustments (2,878) 2,510 Balance, end of year $ 34,430 $ 36,908 The amounts recognized in profit or loss in relation to investment property during the years ended December 31, 2021, 2020 and 2019 are as follows: Years ended December 31: 2021 2020 2019 Rental income $ 1,381 $ 1,376 $ 1,652 Direct operating expenses (including repairs and maintenance) arising from investment property during the year 709 216 266 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment | |
Property, Plant and Equipment | Note 11. Property, Plant and Equipment The following changes in property, plant and equipment were recorded during the year ended December 31, 2021: Currency Opening translation Ending Costs balance Additions Disposals adjustments balance Refinery and power plants $ 65,913 $ — $ — $ (171) $ 65,742 Processing plant and equipment 3,399 — — 2 3,401 Office equipment 1,036 988 (118) (126) 1,780 Right-of-use assets* 1,792 84 (263) (90) 1,523 $ 72,140 $ 1,072 $ (381) $ (385) $ 72,446 Currency Opening translation Ending Accumulated depreciation balance Additions Disposals adjustments balance Refinery and power plants $ 17,286 $ 2,586 $ — $ (33) $ 19,839 Processing plant and equipment 1,771 385 — 2 2,158 Office equipment 517 129 (31) (62) 553 Right-of-use assets* 683 436 (263) (25) 831 20,257 $ 3,536 $ (294) $ (118) 23,381 Net book value $ 51,883 $ 49,065 * Primarily consisting of office premises. The following changes in property, plant and equipment were recorded during the year ended December 31, 2020: Currency Opening translation Ending Costs balance Additions Disposals adjustments balance Refinery and power plants $ 66,701 $ 25 $ — $ (813) $ 65,913 Processing plant and equipment 3,307 88 — 4 3,399 Office equipment 920 116 (69) 69 1,036 Right-of-use assets* 1,554 368 (210) 80 1,792 $ 72,482 $ 597 $ (279) $ (660) $ 72,140 Currency Opening translation Ending Accumulated depreciation balance Additions Disposals adjustments balance Refinery and power plants $ 14,883 $ 2,716 $ — $ (313) $ 17,286 Processing plant and equipment 1,454 314 — 3 1,771 Office equipment 366 157 (37) 31 517 Right-of-use assets* 366 514 (210) 13 683 17,069 $ 3,701 $ (247) $ (266) 20,257 Net book value $ 55,413 $ 51,883 * Primarily consisting of office premises. As at December 31, 2021, the net book value of right-of-use assets was $692 (2020: $1,109). Note 11. Property, Plant and Equipment (continued) As of December 31, 2021, the Group owned a power plant which had a carrying amount of $25,835 (2020: $27,642). Pursuant to an assessment study of which the expected future cash flows were discounted at pre-tax rate of 7.4% (2020: 7.2%), management concluded that there was no impairment loss on December 31, 2021. Numerous variables were utilized for this assessment, including inflation expectations, performance of contracts, discount rates, and maintenance costs. Any change in these assumptions and variables could have an impact on the valuation of the asset. If the discount rate had been 1.0% higher, there would have been no change to the Group’s net income for the year ended December 31, 2021. During the year ended December 31, 2021, 2020 and 2019 respectively, no expenditures were recognized in the carrying amounts of items of property, plant and equipment in the course of their construction. |
Interests in Resource Propertie
Interests in Resource Properties | 12 Months Ended |
Dec. 31, 2021 | |
Interests in Resource Properties | |
Interests in Resource Properties | Note 12. Interests in Resource Properties The Group’s interests in resource properties as at December 31, 2021 and 2020 comprised the following: 2021 2020 Iron ore royalty interest $ 206,439 $ 211,350 Hydrocarbon development and production assets 31,260 32,998 Exploration and evaluation assets – hydrocarbon probable reserves 12,367 12,367 Exploration and evaluation assets – hydrocarbon undeveloped lands 4,640 4,640 $ 254,706 $ 261,355 The movements in the iron ore royalty interest and hydrocarbon development and production assets included in non-current assets during the year ended December 31, 2021 were as follows: Opening Decommissioning Ending Costs balance obligations balance Iron ore royalty interest $ 218,203 $ — $ 218,203 Hydrocarbon development and production assets 45,754 838 46,592 $ 263,957 $ 838 $ 264,795 Opening Ending Accumulated depreciation balance Additions balance Iron ore royalty interest $ 6,853 $ 4,911 $ 11,764 Hydrocarbon development and production assets 12,756 2,576 15,332 19,609 $ 7,487 27,096 Net book value $ 244,348 $ 237,699 Note 12. Interests in Resource Properties (continued) The movements in the iron ore royalty interest and hydrocarbon development and production assets included in non-current assets during the year ended December 31, 2020 were as follows: Opening Decommissioning Ending Costs balance obligations balance Iron ore royalty interest $ 218,203 $ — $ 218,203 Hydrocarbon development and production assets 46,700 (946) 45,754 $ 264,903 $ (946) $ 263,957 Opening Ending Accumulated depreciation balance Additions balance Iron ore royalty interest $ 1,628 $ 5,225 $ 6,853 Hydrocarbon development and production assets 10,212 2,544 12,756 11,840 $ 7,769 19,609 Net book value $ 253,063 $ 244,348 The movements in exploration and evaluation assets presented as hydrocarbon probable reserves and undeveloped lands during the years ended December 31, 2021 and 2020 were as follows: 2021 2020 Probable Undeveloped Probable Undeveloped reserves lands reserves lands Balance, beginning of year $ 12,367 $ 4,640 $ 12,367 $ 4,640 Additions — — — — Disposal — — — — Balance, end of year $ 12,367 $ 4,640 $ 12,367 $ 4,640 Iron ore royalty interest The Group derives revenue from a mining sub-lease of the lands upon which the Scully iron ore mine is situated in the Province of Newfoundland and Labrador, Canada. The sub-lease commenced in 1956 and expires in 2055. The iron ore deposit is currently sub-leased to a third-party entity under certain lease agreements which will also expire in 2055. Pursuant and subject to the terms of the lease agreements, the Group collects royalty payments directly from a third-party operator based on a pre-determined formula, with a minimum payment of $3,250 per year. Management performed assessments on December 31, 2021, 2020 and 2019 utilizing the value-in-use methodology using a pre-tax discount rate of 8.08%, 6.43% and 8.30%, respectively, and concluded that there was no impairment on those dates. Hydrocarbon properties The Group owns hydrocarbon properties in western Canada. The majority of such operations are located in the Deep Basin fairway of the Western Canada Sedimentary Basin. The Group’s hydrocarbon development and production assets include producing natural gas wells, non-producing natural gas wells, producing oil wells and non-producing oil wells, but do not include a land position that includes net working interests in undeveloped acreage and properties containing probable reserves only, both of which are included in exploration and evaluation assets. Note 12. Interests in Resource Properties (continued) The recoverable amounts of the Group’s hydrocarbon CGUs are determined whenever facts and circumstances provide impairment indicators. CGUs are mainly determined based upon the geographical region of the Group’s producing properties. An impairment is recognized if the carrying value of a CGU exceeds the recoverable amount for that CGU. The Group determines the recoverable amount by using the greater of fair value less cost to sell and the value-in-use. Value-in-use is generally the future cash flows expected to be derived from production of proven and probable reserves estimated by the Company's third-party reserve evaluators. These third-party reserve engineers take many data points and forecasts into consideration when estimating the value-in-use of the CGU, including best estimates of future natural gas prices, production based on current estimates of recoverable reserves and resources, exploration potential, future operating costs, non-expansionary capital expenditures and inflation. Management performed assessments on December 31, 2021, 2020 and 2019, respectively, on its hydrocarbon properties utilizing the value-in-use methodology using a pre-tax discount rate of 10.0% and concluded that there was no impairment on these dates. If the discount rate had been 1.0% higher, there would have been no financial impact on the Group's net income in the year ended December 31, 2021. |
Deferred Income Tax Assets and
Deferred Income Tax Assets and Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Income Tax Assets and Liabilities | |
Deferred Income Tax Assets and Liabilities | Note 13. Deferred Income Tax Assets and Liabilities The tax effect of temporary differences and tax loss carry-forwards that give rise to significant components of the Group’s deferred income tax assets and liabilities are as follows: As at December 31: 2021 2020 Non-capital tax loss carry-forwards $ 18,692 $ 24,677 Interests in resource properties (59,864) (62,418) Other assets (5,655) (7,251) Other liabilities (11,015) (10,267) $ (57,842) $ (55,259) Presented on the consolidated statements of financial position as follows: Deferred income tax assets $ 9,619 $ 10,856 Deferred income tax liabilities (67,461) (66,115) Net $ (57,842) $ (55,259) As at December 31, 2021, the Group had estimated accumulated non-capital losses, which expire in the following countries and regions as follows. Management is of the opinion that not all of these non-capital losses are probable to be utilized in the future. Amount for which no deferred income tax asset Country / Region Gross amount is recognized Expiration dates Canada $ 4,628 $ 15 2037 ‑ 2041 U.S.A. 84 — Indefinite Germany 423 — Indefinite Malta 92,417 63,628 Indefinite Africa 26,310 — Indefinite Note 13. Deferred Income Tax Assets and Liabilities (continued) The utilization of the deferred tax assets is dependent on future taxable profits in excess of the profits arising from the reversal of existing taxable temporary differences and the Group companies have suffered losses in either the current or preceding period(s) in the tax jurisdictions to which the deferred tax assets relate. The Group companies’ income tax, value-added tax and payroll tax filings are also subject to audit by taxation authorities in numerous jurisdictions. There are audits in progress and items under review, some of which may increase the Group’s income tax, value-added tax and payroll tax liability. If it is probable that management’s estimate of the future resolution of these matters changes, the Group will recognize the effects of the changes in its consolidated financial statements in the appropriate period relative to when such changes occur. |
Account Payables and Accrued Ex
Account Payables and Accrued Expenses | 12 Months Ended |
Dec. 31, 2021 | |
Account Payables and Accrued Expenses | |
Account Payables and Accrued Expenses | Note 14. Account Payables and Accrued Expenses As at December 31: 2021 2020 Trade and account payables $ 6,579 $ 9,923 Interest payables 482 521 Value-added, goods and services and other taxes (other than income taxes) 1,550 1,194 Compensation 272 289 Contract liabilities under contracts with customers 1,864 2,767 Lease liabilities 291 384 Provision for a financial loss 283 575 Due to an affiliate (see Note 25) 25 27 $ 11,346 $ 15,680 Trade payables arise from the Group’s day-to-day activities. The Group’s expenses for services and other operational expenses are included in account payables. Generally, these payables and accrual accounts do not bear interest and have a maturity of less than one year. Contract liabilities under contracts with customers The movements of contract liabilities under contracts with customers for the years ended December 31, 2021 and 2020 were as follows: 2021 2020 Balance, beginning of the year $ 2,767 $ 4,637 Considerations received 614 2,329 Reclassification to profit or loss upon satisfaction of performance obligations (1,517) (1,715) Write-off — (2,600) Other adjustments — 116 Balance, end of the year $ 1,864 $ 2,767 The Group expects to recognize the contract liabilities as revenue upon satisfaction of performance obligations in the following years: 2021 2020 Year 1 after the year-end (included in current liabilities) $ 1,864 $ 2,767 $ 1,864 $ 2,767 Note 14. Account Payables and Accrued Expenses (continued) Lease liabilities Future lease payments included in the measurement of the lease liabilities as at December 31, 2021 are as follows: Years ending December 31: Principal Interest Total 2022 $ 291 $ 23 $ 314 2023 233 13 246 2024 243 3 246 $ 767 $ 39 $ 806 As at December 31, 2021, the principal amounts of the lease liabilities were presented in the consolidated statement of financial position as follows: Current liabilities $ 291 Non-current liabilities 476 $ 767 As at December 31, 2021, the lease liabilities, which principally comprised office premises (see Note 11), have varying terms and are subject to the customary practices in the local regions. The Group expects to pay for these future lease payments from cash flow from operations. Management does not expect material exposure arising from variable lease payments, extension options and termination options, residual value guarantees and leases not yet commenced to which the Group is committed. The Group recognized the following associated with its lease liabilities for the year ended December 31, 2021, 2020 and 2019: 2021 2020 2019 Interest expense $ 42 $ 59 $ 71 Expense relating to short-term leases with payments directly charged to profit or loss 358 533 881 Expense relating to leases of low-value assets with payments directly charged to profit or loss 115 — — Expense relating to variable lease payments not included in the measurement of lease liabilities — — — Total cash outflows for leases 939 1,043 1,824 Gain on COVID-19-related rent concessions — (6) — Depreciation charge for right-of-use assets (see Note 11) 436 514 738 Carrying amount of right-of-use assets at the end of the reporting period (see Note 11) 692 1,109 1,188 |
Bonds Payable
Bonds Payable | 12 Months Ended |
Dec. 31, 2021 | |
Bonds Payable | |
Bonds Payable | Note 15. Bonds Payable In August 2019, a subsidiary completed a public issue of bonds with an aggregate nominal amount of $36,511 (€25,000), less commissions and issuance costs totalling $1,078 (€738). The bonds are redeemable in August 2026, interest payable in August each year at a nominal interest rate of 4.00% (or an effective interest rate of 4.41%) and secured by the Group's investment property and real estate for sale under the German Law Mortgages and Pledges. To the extent that any sales of these properties, in whole or in part, cause the security to fall below a certain ratio, proceeds of said sale, up to an amount of the collateral shortfall, are required to be placed as cash collateral with the bondholder trustee until maturity. As at December 31, 2021, the carrying and nominal amounts of the bonds payable were $35,227 (€24,478) and $35,978 (€25,000), respectively. For the movements of bonds payable in the years ended December 31, 2021, 2020 and 2019, see Note 24. Note 15. Bonds Payable (continued) As at December 31, 2021, the contractual maturities of the bonds payable are as follows: Years ending December 31: Principal Interest Total 2022 $ — $ 1,439 $ 1,439 2023 — 1,439 1,439 2024 — 1,439 1,439 2025 — 1,439 1,439 2026 35,978 1,439 37,417 $ 35,978 $ 7,195 $ 43,173 |
Decommissioning Obligations
Decommissioning Obligations | 12 Months Ended |
Dec. 31, 2021 | |
Decommissioning Obligations | |
Decommissioning Obligations | Note 16. Decommissioning Obligations 2021 2020 Decommissioning obligations, beginning of year $ 14,072 $ 15,018 Changes in estimates 838 (946) Accretion 186 — Decommissioning obligations, end of year $ 15,096 $ 14,072 Decommissioning obligations represent the present value of estimated remediation and reclamation costs associated with hydrocarbon properties and property, plant and equipment. As at December 31, 2021 and 2020, management revised its estimates of the expected decommissioning obligations related to its hydrocarbon production and processing assets. The Group discounted the decommissioning obligations using an average discount rate of 1.20% (2020: 0.70)%, which is the risk-free rate in Canada for blended government securities and inflation of 1.95% (2020: 0.70)%. The Group’s decommissioning obligations are unsecured and will be funded from future cash flows from operations. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2021 | |
Shareholders' Equity | |
Shareholders' Equity | Note 17. Shareholders’ Equity Capital Stock The authorized share capital of Scully is US$450,000 divided into 300,000,000 common shares of US$0.001 par value each and 150,000,000 preference shares divided into US$0.001 par value each. Holders of common shares may receive dividends declared by the Company in accordance with the Company’s memorandum and articles of association, subject to any preferential dividend rights of any other classes or series of preference shares issued and outstanding. Holders of common shares are entitled to one vote per share at any general or special meeting of shareholders. The holders of common shares have the right on the winding up or dissolution of the Company to participate in the surplus assets of the Company in accordance with the provisions of the memorandum and articles of association of the Company, subject to the rights of any issued and outstanding preference shares. The movements of total capital stock for the years ended December 31, 2021 and 2020 were as follows: Number Capital Stock Additional Total of Shares at Par Value Paid-in Capital Capital Stock Balance, January 1 and December 31, 2020 12,620,448 $ 16 $ 312,471 $ 312,487 Stock dividends* 2,236,133 3 (3) — Balance, December 31, 2021 14,856,581 $ 19 $ 312,468 $ 312,487 * 9% stock dividends were distributed on May 31, 2021 to shareholders of record as at May 14, 2021 and 8% stock dividends were distributed on November 30, 2021 to shareholders of record as at November 15, 2021. No fractional shares were issued by the Company in connection with such stock dividends. Note 17. Shareholders’ Equity (continued) Treasury Stock As at December 31: 2021 2020 Total number of common shares held as treasury stock 77,279 * 65,647 Total carrying amount of treasury stock $ 2,643 $ 2,643 * 11,632 common shares were received as stock dividends during the year ended December 31, 2021. All of the Company’s treasury stock is held by the Company itself. |
Consolidated Statements of Op_2
Consolidated Statements of Operations Information | 12 Months Ended |
Dec. 31, 2021 | |
Consolidated Statements of Operations Information | |
Consolidated Statements of Operations Information | Note 18. Consolidated Statements of Operations Information Revenue The Group’s revenue comprised: Years ended December 31: 2021 2020 2019 Royalty, goods and products and services $ 60,201 $ 48,441 $ 101,013 Interest 405 531 1,057 Dividends 244 — — Gain on securities, net — 758 931 Other, including medical and real estate sectors 10,441 9,702 10,266 Revenue $ 71,291 $ 59,432 $ 113,267 The revenue of $60,201 from royalty, goods and products and services for the year ended December 31, 2021 comprised royalty revenue of $40,137, natural gas of $13,236, power and electricity of $2,927, food products of $2,721 and fees of $1,180. The revenue of $48,441 from royalty, goods and products and services for the year ended December 31, 2020 comprised royalty revenue of $31,448, natural gas of $7,584, power and electricity of $3,358, food products of $4,602 and fees of $1,449. The revenue of $101,013 from royalty, goods and products and services for the year ended December 31, 2019 comprised metals of $77,527, natural gas of $7,712, royalty revenue of $5,687, power and electricity of $4,075, fees of $3,547 and food products of $2,465. A metals processing business was disposed of in September 2019. Another metal processing business which comprised two subsidiaries was disposed of in October 2019. See Note 2C(iv). Note 18. Consolidated Statements of Operations Information (continued) Costs and Expenses The Group's costs of sales and services comprised: Years Ended December 31: 2021 2020 2019 Royalty, goods and products and services $ 22,933 $ 22,102 $ 95,189 Market value increase on commodity inventories — — (160) (Reversal of) write-down of inventories (19) 469 1,822 Gain on derivative contracts, net (1,376) — (122) Fair value gain on investment property, net of write-down of real estate for sale (407) (757) (3,122) Loss (gain) on dispositions of subsidiaries, net — 546 (2,243) Gains on settlements and derecognition of liabilities (390) (2,600) (1,168) Change in fair value of loan payable measured at FVTPL 1,616 549 979 Losses on securities, net 2,320 — — Other, including medical and real estate sectors 6,241 6,561 5,386 Total costs of sales and services $ 30,918 $ 26,870 $ 96,561 The Group's net loss (gain) on dispositions of subsidiaries comprised: Years Ended December 31: 2021 2020 2019 Net assets (liabilities) in excess of considerations received $ — $ 331 $ (485) Reclassification adjustment for the exchange differences upon dispositions of subsidiaries — 215 (1,758) Loss (gain) on dispositions of subsidiaries, net (see Note 28) $ — $ 546 $ (2,243) The Group included the following items in costs of sales and services: Years ended December 31: 2021 2020 2019 Inventories as costs of goods sold (including depreciation expenses allocated to costs of goods sold) $ 3,488 $ 5,041 $ 72,414 The Group's credit losses comprised: Years ended December 31: 2021 2020 2019 Credit losses on loans and receivables and guarantees, net of reversal $ 88 $ (3,108) $ 13,398 During the year ended December 31, 2019, the credit losses included $6,057 due from a former consolidated entity and also included losses of $3,200 relating to the consideration from the sale of a subsidiary, which was no longer expected to be received, and $3,134 on certain corporate guarantees (see Note 25). During the year ended December 31, 2020, the provision for the corporate guarantees were reversed and recognized in profit or loss. The credit losses were recognized on the financial assets that were credit-impaired at the reporting date. Note 18. Consolidated Statements of Operations Information (continued) The Group’s selling, general and administrative expenses comprised: Years ended December 31: 2021 2020 2019 Compensation (wages and salaries) $ 4,551 $ 4,083 $ 6,762 Legal and professional 6,395 6,794 5,050 Accounting 1,238 1,294 1,965 Consulting and fees 3,423 2,836 2,365 Depreciation and amortization 481 557 502 Office 948 708 874 Reimbursement of expenses (net of recovery) 1,018 257 749 Other 3,090 3,372 4,306 $ 21,144 $ 19,901 $ 22,573 Additional information on the nature of costs and expenses Years Ended December 31: 2021 2020 2019 Depreciation, depletion and amortization $ 11,023 $ 11,470 $ 8,287 Employee benefits expenses* 6,922 7,253 13,727 * Employee benefits expenses do not include the directors’ fees of the Company. For directors’ fees, see Note 25. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Share-Based Compensation | |
Share-Based Compensation | Note 19. Share-Based Compensation The 2017 Equity Incentive Plan, referred to as the “2017 Plan”, was adopted by the Company on July 14, 2017. Pursuant to the terms of the 2017 Plan, the board of directors, the Compensation Committee or such other committee as is appointed by the board of directors to administer the Incentive Plan, may grant stock options, restricted stock rights, restricted stock, performance share awards, performance share units and stock appreciation rights under the 2017 Plan, establish the terms and conditions for those awards, construe and interpret the 2017 Plan and establish the rules for the 2017 Plan’s administration. Such awards may be granted to employees, non-employee directors, officers or consultants or any affiliate or any person to whom an offer of employment with the Group or any affiliate is extended. Such committee has the authority to determine which employees, non-employee directors, officers, consultants and prospective employees should receive such awards. In July 2019, stock options to purchase 20,000 of the Company's common shares at US$8.76 per share were exercised. The closing price of the Company's common share was US$14.76 per share on the date of the exercise. These numbers were not adjusted for the stock dividends issued in 2021. Note 19. Share-Based Compensation (continued) In April 2021, the Company's Board of Directors authorized an amendment to the 2017 Plan to: (i) increase the number of common shares of the Company available for Awards (as defined in the 2017 Plan) thereunder by 1,326,591 common shares from 575,403 to 1,901,994 common shares; and (ii) increase the annual limitations on grants of Awards to Covered Employees (as defined in the 2017 Plan) to 400,000 common shares of the Company in any fiscal year (425,000 common shares during the fiscal year when such participant's employment commences). The Company's Compensation Committee and Board of Directors also approved grants of stock options entitling the holders thereof to acquire up to 1,307,000 common shares of the Company, which options will have a term of 10 years, be granted effective on the second business day after the date of the Company's 2020 Annual Report on Form 20-F and have an exercise price equal to the closing price of the Company's common shares on such date (which was US$13.15 per common share). Vesting of these Awards became effective upon ratification of the amendments to the 2017 Plan at the annual meeting of the Company's shareholders on December 29, 2021. These numbers were not adjusted for the stock dividends issued in 2021. The following table is a summary of the changes in stock options granted under the plans: 2017 Plan Weighted average exercise Number price of per share options (US$) Outstanding as at January 1, 2019 450,000 8.76 Forfeited (4,000) 8.76 Exercised (20,000) 8.76 Outstanding as at December 31, 2019 and 2020 426,000 8.76 Forfeited (32,500) 8.76 Granted 1,307,000 13.15 Adjustments for stock dividends issued in 2021 301,322 Not applicable Outstanding as at December 31, 2021 2,001,822 10.31 As at December 31, 2021: Options exercisable 2,001,822 10.31 Options available for granting in future periods 213,659 The following table summarizes information about stock options outstanding and exercisable as at December 31, 2021: Options Outstanding and Exercisable Weighted average remaining Exercise Price per Share (US$)* Number contractual life (in years) $7.44 463,226 5.92 $11.17 1,538,596 9.33 Total 2,001,822 8.54 *The exercise price per share has been adjusted to reflect the effects of the stock dividends distributed in the year ended December 31, 2021. See Note 17. Note 19. Share-Based Compensation (continued) The following table summarizes the share-based compensation expenses recognized by the Group in its consolidated statements of operations: Years ended December 31: 2021 2020 2019 Share-based compensation expenses arising from stock options granted by the Company $ 2,497 $ — $ — The weighted average assumptions and inputs used in calculating the fair value of the stock options granted on May 4, 2021 and approved by a shareholder meeting on December 29, 2021, using the Black-Scholes-Merton formula were as follows: 2021 Number of options granted (on a post-stock dividend basis) 1,538,596 Vesting requirements Immediately Contractual life 9.33 years Method of settlement In equity Exercise price per share US$11.17 Market price per share on grant date US$10.01 Expected volatility 39.24% Expected option life 9.33 years Expected dividends 8.00% Risk-free interest rate 1.48% Fair value of option granted (per option) $1.62 (US$1.27) The expected volatility was determined based on the historical price movement of comparable companies over the expected option life, with adjustments for underlying businesses. The stock option holders are not entitled to dividends or dividend equivalents until the options are exercised. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Taxes | |
Income Taxes | Note 20. Income Taxes The components of income tax expense comprised: Years ended December 31: 2021 2020 2019 Current taxes $ (215) $ (95) $ (384) Deferred taxes (2,074) (4,798) (98) Resource property expense (7,887) (6,074) (1,137) $ (10,176) $ (10,967) $ (1,619) Note 20. Income Taxes (continued) A reconciliation of income (loss) before income taxes to the provision for income taxes in the consolidated statements of operations is as follows: Years ended December 31: 2021 2020 2019 Income (loss) before income taxes $ 17,547 $ 11,179 $ (16,784) Computed (expense) recovery of income taxes $ (5,982) $ (6,521) $ 4,743 Decrease (increase) in income taxes resulting from: Effect of change in income tax rate — (13) 891 Other non-taxable income 160 (1) 24 Revisions to prior years 351 (21) 88 Capital gains and losses on dispositions, net 83 35 (7,663) Resource property revenue taxes (5,758) (4,433) (830) Unrecognized losses in current year (199) (1) (228) Previously unrecognized deferred income tax assets, net 302 113 1,229 Permanent differences (262) (92) (178) Other non-taxable income 1,156 — — Other, net (27) (33) 305 Income tax expense $ (10,176) $ (10,967) $ (1,619) The income tax recovery and expense were computed using the domestic rate in each individual jurisdiction. Scully has a zero tax rate under its tax jurisdiction. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings (Loss) Per Share | |
Earnings (Loss) Per Share | Note 21. Earnings (Loss) Per Share Earnings (loss) per share data for the years ended December 31, 2021, 2020 and 2019 are summarized as follows: 2021 2020 2019 Basic income (loss) attributable to holders of common shares $ 7,564 $ 369 $ (18,553) Effect of dilutive securities: — — — Diluted income (loss) $ 7,564 $ 369 $ (18,553) Number of Shares 2021 2020* 2019* Weighted average number of common shares outstanding - basic 14,779,302 14,779,302 14,765,938 Effect of dilutive securities: Options 129,010 — — Weighted average number of common shares outstanding - diluted 14,908,312 14,779,302 14,765,938 * The numbers have been restated for the stock dividends issued in 2021. See Note 17. 2021 2020 2019 Earnings (loss) per share — basic and diluted $ 0.51 $ 0.03 $ (1.26) In 2021, 2020 and 2019, the Group's potential ordinary shares include stock options outstanding. Note 21. Earnings (Loss) Per Share (continued) As at both December 31, 2020 and 2019, there were 501,485 stock options (which were adjusted for the stock dividends issued in 2021) outstanding that could potentially dilute basic earnings per share in the future, but were not included in the calculation of diluted earnings per share because they were antidilutive for the year ended December 31, 2019. |
Dividends Paid
Dividends Paid | 12 Months Ended |
Dec. 31, 2021 | |
Dividends Paid | |
Dividends Paid | Note 22. Dividends Paid The Company did not declare nor pay dividends during the years ended December 31, 2021, 2020 and 2019 other than the stock dividend issued during the year ended December 31, 2021, as described in Note 17. See Note 29. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 23. Commitments and Contingencies Litigation The Group is subject to routine litigation incidental to its business and is named from time to time as a defendant and is a plaintiff from time to time in various legal actions arising in connection with its activities, certain of which may include large claims for punitive damages. Further, due to the size, complexity and nature of the Group’s operations, various legal and tax matters are outstanding from time to time, including periodic audit by various tax authorities . The Company and certain subsidiaries have been named as defendants in a legal action relating to an alleged guarantee of the former parent of the Group in the amount of approximately $68,363 (€43,800) as at December 31, 2020. The Group believes that such claim is without merit and intends to vigorously defend such claim. In 2021, the Group was informed of a proposed amendment to the claim which, if allowed, would increase the amount to approximately $130,951 (€90,995) as at December 31, 2021. Currently, based upon the information available to management, management does not believe that there will be a material adverse effect on the Group's financial position or results of operations as a result of this action. However, due to the inherent uncertainty of litigation, the Company cannot provide certainty as to the outcome. Currently, based upon information available, management does not believe any such matters would have a material adverse effect upon the Group's financial condition or results of operations as at December 31, 2021. However, due to the inherent uncertainty of litigation, there cannot be certainty as to the eventual outcome of any case. If management's current assessments are incorrect or if management is unable to resolve any of these matters favourably, there may be a material adverse impact on the Group's financial performance, cash flows or results of operations. Rights to Subscribe to Shares in Subsidiaries During 2017, two subsidiaries of the Group entered into agreements with third-party employee incentive corporations whereby the latter were granted the rights to buy up to 10% of the share capital of the subsidiaries on a diluted basis at a price to be no less or more than the then existing net tangible asset value. The rights expire in 2027. Certain rights which were issued in January 2020, and the underlying agreements, were cancelled in April 2021. Management determined the fair value of the rights to be $nil at the time of their issuance. The issuance of such rights does not have financial impact on the assets and liabilities of the Group until exercised. |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows - Supplemental Disclosure | 12 Months Ended |
Dec. 31, 2021 | |
Consolidated Statements of Cash Flows - Supplemental Disclosure | |
Consolidated Statements of Cash Flows - Supplemental Disclosure | Note 24. Consolidated Statements of Cash Flows – Supplemental Disclosure Interest paid and received, dividends received and income taxes paid are classified as operating activities. Dividends paid are classified as financing activities. Income taxes paid include the payments of advance tax prepayments and are net of tax cash refunds. There are no circumstances in which cash held by an entity are not available for use by the Group other than amounts presented as restricted cash. See “Currency Risk” in Note 26. Note 24. Consolidated Statements of Cash Flows – Supplemental Disclosure (continued) Consolidated cash flows statement – reconciliation of liabilities arising from financing activities Years ended December 31: 2021 2020 2019 Bonds payable, opening balance $ 38,053 $ 35,418 $ — Cash flows — — 35,433 Non-cash changes: Accretion 145 143 533 Cumulative translation adjustments (2,971) 2,492 (548) Bonds payable, ending balance (see Note 15) $ 35,227 $ 38,053 $ 35,418 Years ended December 31: 2021 2020 2019 Lease liabilities, opening balance $ 1,175 $ 1,196 $ — Cash flows (466) (510) (943) Non-cash changes: Initial adoption of IFRS 16 — — 2,911 Additions 84 368 1,583 Dispositions of subsidiaries — — (487) Accretion 42 59 71 COVID-19 related rent concessions — (6) — Termination — — (1,809) Cumulative translation adjustments (68) 68 (130) Lease liabilities, ending balance (see Note 14) $ 767 $ 1,175 $ 1,196 Non-cash transactions Non-cash transactions during the year ended December 31, 2021: (i) an internal reorganization of the Group’s structure resulted in a net recovery of deferred income tax by $1,156; and (ii) a subsidiary of the Group derecognized a liability of $390 for a consideration of $nil. Non-cash transactions during the year ended December 31, 2020: (i) a subsidiary of the Group settled a liability of $391 by delivering shares of one of its subsidiaries; and (ii) the Group received additional shares in a majority-owned subsidiary as price adjustment for liability settlements in 2019. Non-cash transactions during the year ended December 31, 2019: (i) a subsidiary of the Group settled liabilities of $1,128 by delivering shares of one of its subsidiaries; and (ii) the acquisition of a non-controlling interest in the aforementioned subsidiary by an offset of a receivable of $390. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions | |
Related Party Transactions | Note 25. Related Party Transactions In the normal course of operations, the Group enters into transactions with related parties, which include affiliates in which the Group has a significant equity interest (10% or more) or has the ability to influence their operating and financing policies through significant shareholding, representation on the board of directors, corporate charter and/or bylaws. The related parties also include, among other things, the Company's directors, President, Chief Executive Officer and Chief Financial Officer. This section does not include disclosure, if any, respecting open market transactions, whereby a related party acts as an investor of the Company’s securities or the bonds of Merkanti Holding. Note 25. Related Party Transactions (continued) The Group had the following transactions with its related parties: Years ended December 31: 2021 2020 2019 Fee income $ 1 $ 9 $ 10 Interest income — 86 31 Dividends received 198 — — Royalty expenses (700) (660) (210) Credit losses on corporate guarantees — — (3,134) * Reversal of (expense of) ECL allowance, net — 15 (16) Fee expenses — (80) — Reimbursements of expenses, primarily including employee benefits and lease and office expenses (1,007) (276) (811) * From time to time the Group has entered into arrangements with a company controlled by the Group's Chairman to assist the Group to comply with various local regulations and requirements, including the newly introduced economic substance legislation for offshore jurisdictions, as well as fiscal efficiency. These arrangements are utilized to aid in the divestment of financially or otherwise distressed or insolvent assets or businesses that are determined to be unsuitable for the Group's ongoing operations. These arrangements are implemented at cost and no economic benefit is received by, or accrued, by the Group's Chairman or the company controlled by him. Pursuant to this arrangement, as at December 31, 2021, the Group held: (i) an indemnification asset of $6,756 (2020: $6,756) (see Note 8) relating to a secured indemnity provided by such company to a subsidiary of the Group to comply with local regulations and requirements, in an amount equal to the amount advanced to it, for certain short-term intercompany balances involving certain of the Group’s subsidiaries and another subsidiary that was put into dissolution by the Group in 2019; (ii) a loan to such company of $819 (2020: $818) (see Note 8) which was made in the year ended December 31, 2019 in order to facilitate the acquisition of securities for the Group's benefit. The loan initially bore interest at 6.3% and subsequently became non-interest bearing; and (iii) current account receivables of $46,926 (2020: $20,802) (see Note 8). The Group also had current account payables of $25 (2020: $27) due to the aforesaid affiliate as at December 31, 2021 (see Note 14). In addition, pursuant to this arrangement, during the year ended December 31, 2021, 2020 and 2019, the Group reimbursed such company $1,007, $276 and $811 (as set forth in the table above), respectively, at cost for expenses, primarily consisting of employee benefits and lease and office expenses. Furthermore, during the year ended December 31, 2019, the Group sold a non-core metals processing business to a company controlled by its Chairman for nominal consideration (€1.00), which represented the arm's length transaction price. This metals processing business operated out of a leased property with leased equipment. Over the past fifteen years, the landlord of the land and equipment refused to incur any capital expenditures or to make any necessary improvement to the facility. Without these necessary capital upgrades and improvements, the subsidiary’s maintenance costs increased and productivity decreased such that it could no longer be operated on a profitable or sustainable basis. After reporting a net loss in the year ended December 31, 2018, it continued to report losses in the year ended December 31, 2019, which resulted in the subsidiary having negative net equity on a consolidated basis. As a result, the transaction did not result in the transfer of any net economic benefit to the company controlled by the Group's Chairman and the sale for nominal consideration resulted in the recognition of a non-cash accounting gain of $906 in the year ended December 31, 2019. Subsequent to the sale, this former subsidiary entered into an insolvency administration process. During the year ended December 31, 2019, the Group recognized credit losses of $3,134 on corporate guarantees issued to certain trading partners of this former subsidiary prior to its disposition. During the year ended December 31, 2020, the provision for credit losses on the corporate guarantees was reversed and recognized in profit or loss. As set forth in the table above, the Group had royalty expenses of $700 , $660 and $210 , respectively, in the year ended December 31, 2021, 2020 and 2019 that were paid to a company in which it holds a minority interest and that is a subsidiary of the operator of the underlying mine. Note 25. Related Party Transactions (continued) During the year ended December 31, 2019, the Group's Executive Chairman was a subscriber in the issuance of public bonds by Merkanti Holding in the amount of $455 (€316), which represented approximately 1.25% of the total offering and total bonds outstanding as at both December 31, 2021 and 2020. Key management personnel The Group's key management personnel comprise the members of its Board of Directors, President, Chief Executive Officer and Chief Financial Officer of SRL. The remuneration of key management personnel of the Group on an accrual basis was as follows: Years ended December 31: 2021 2020 2019 Short-term employee benefits $ 1,288 * $ 1,413 * $ 1,451 ** Post-employment benefits 80 — — Directors' fees 659 579 531 Share-based compensation*** 1,087 — — Total $ 3,114 $ 1,992 $ 1,982 * Net of salary and expenses. ** Included the net pay and expenses. ***Amounts computed based on fair values using the Black-Scholes-Merton formula. (See Note 19). |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2021 | |
Financial Instruments | |
Financial Instruments | Note 26. Financial Instruments The fair values of the Group’s financial instruments as at December 31, 2021 and 2020, other than those with carrying amounts that approximate their fair values due to their short-term nature, are summarized as follows: 2021 2020 Carrying Fair Carrying Fair As at December 31: Amount Value Amount Value Financial Assets: FVTPL: Equity securities $ 8,564 $ 8,564 $ 6,230 $ 6,230 Debt securities — — 873 873 Investment funds 3,531 3,531 4,096 4,096 Long-term loan receivable — — 1,237 1,237 FVTOCI: Debt securities 10,786 10,786 11,019 11,019 Financial Liabilities: Financial liabilities measured at amortized cost: Bonds payable $ 35,227 $ 36,693 $ 38,053 $ 39,024 FVTPL: Loan payable 6,817 6,817 5,223 5,223 Note 26. Financial Instruments (continued) Fair value of a financial instrument represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or most advantageous) market at the measurement date under current market conditions regardless of whether that price is directly observable or estimated using a valuation technique. The price for a transaction which takes place under duress or the seller is forced to accept the price in the transaction might not represent the fair value of an asset or a liability. The best evidence of fair value is published price quotations in an active market. When the market for a financial asset or financial liability is not active, the Group establishes fair value by using a valuation technique. The valuation technique used maximizes the use of inputs observed in active markets, and minimizes the use of inputs generated by the Group. Internally generated inputs take into account factors that market participants would consider when pricing the financial instruments, such as liquidity and credit risks. Use of judgment is significantly involved in estimating fair value of financial instruments in inactive markets and actual results could materially differ from the estimates. To value longer-term transactions and transactions in less active markets for which pricing information is not generally available, unobservable inputs may be used. The fair values of financial assets measured at FVTPL and FVTOCI are based on quoted market prices (Level 1 fair value hierarchy) or a valuation method with observable inputs (Level 2 fair value hierarchy). For investments in certain specialized debt securities and investment funds which are measured at FVTPL, their fair values are based on a valuation model with inputs that are unobservable (Level 3 fair value hierarchy). Generally, the Group relies on legally protected information to arrive at their valuations and, as a result, is precluded from disclosing individual asset valuations publicly. The carrying amounts of cash and restricted cash, short-term receivables and account payables and accrued expenses, due to their short-term nature and normal trade credit terms, approximate their fair values. The fair values of derivative financial instruments are based on quoted market prices when possible; and if not available, estimates from third-party brokers. These broker estimates are corroborated with multiple sources and/or other observable market data utilizing assumptions that market participants would use when pricing the asset or liability, including assumptions about risk and market liquidity (Level 2 fair value hierarchy). Inputs may be readily observable or market-corroborated. The fair values of the bonds payable are based on the quoted market price from the Malta Stock Exchange at which the bonds are traded (Level 1 fair value hierarchy). The fair value of the loan payable is estimated using an appropriate valuation method. Inputs to the valuation technique are unobservable (Level 3 fair value hierarchy). Note 26. Financial Instruments (continued) The following tables present the Group's financial instruments measured at fair value in the consolidated statements of financial position classified by level of the fair value hierarchy as at December 31, 2021 and 2020, respectively: As at December 31, 2021 Level 1 Level 2 Level 3 Total Financial Assets: FVTPL: Equity securities $ 4,939 $ 3,625 $ — $ 8,564 Investment funds — — 3,531 3,531 FVTOCI: Debt securities 10,786 — — 10,786 Total $ 15,725 $ 3,625 $ 3,531 $ 22,881 Financial Liabilities: FVTPL: Loan payable $ — $ — $ 6,817 $ 6,817 As at December 31, 2020 Level 1 Level 2 Level 3 Total Financial Assets: FVTPL: Equity securities $ 2,509 $ 3,721 $ — $ 6,230 Debt securities — — 873 873 Investment funds — — 4,096 4,096 Long-term loan receivable — — 1,237 1,237 FVTOCI: Debt securities 11,019 — — 11,019 Total $ 13,528 $ 3,721 $ 6,206 $ 23,455 Financial Liabilities: FVTPL: Loan payable $ — $ — $ 5,223 $ 5,223 As at December 31, 2021 and 2020, the Group held an investment in a privately held company which was measured at FVTPL. The fair value was determined using discounted cash flows at prevailing market rates of interest for similar instruments with observable inputs (Level 2 fair value hierarchy). As at December 31, 2021 and 2020, a subsidiary of the Group had a loan payable with a former subsidiary which is non-interest bearing, is without recourse to the Group and has no fixed repayment date. The loan payable was measured at FVTPL at its initial recognition, as permitted under IFRS, on a fair value basis in accordance with a documented investment strategy. Note 26. Financial Instruments (continued) Generally, management of the Group believes that current financial assets and financial liabilities, due to their short-term nature, do not pose significant financial risks. The Group uses various financial instruments to manage its exposure to various financial risks. The policies for controlling the risks associated with financial instruments include, but are not limited to, standardized company procedures and policies on matters such as hedging of risk exposure, avoidance of undue concentration of risk and requirements for collateral (including letters of credit and bank guarantees) to mitigate credit risk. The Group has risk managers and other personnel to perform checking functions and risk assessments so as to ensure that the Group’s procedures and policies are complied with. Many of the Group’s strategies, including the use of derivative instruments and the types of derivative instruments selected by the Group, are based on historical trading patterns and correlations and the Group’s management’s expectations of future events. However, these strategies may not be fully effective in all market environments or against all types of risks. Unexpected market developments may affect the Group’s risk management strategies during the period, and unanticipated developments could impact the Group’s risk management strategies in the future. If any of the variety of instruments and strategies the Group utilizes is not effective, the Group may incur losses. The Group does not trade in financial instruments, including derivative financial instruments, for speculative purposes. The nature of the risks that the Group’s financial instruments are subject to as at December 31, 2021 is set out in the following table: Risks Market risks Financial instrument Credit Liquidity Currency Interest rate Other price Cash and restricted cash X X X Equity securities X X Debt securities X X X Investment funds Derivative securities and financial liabilities X X X X Receivables X X Account payables and accrued expenses X X Bonds payable X X X Loan payable X A sensitivity analysis for each type of market risk to which the Group is exposed on its financial instruments at the end of the reporting period is provided, showing how profit or loss and equity would have been affected by changes in the relevant risk variable that were reasonably possible at that date. These ranges of parameters are estimated by management, which are based on the facts and circumstances available at the time estimates are made, and an assumption of stable socio-economic and geopolitical states. No unusual nor exceptional events, for example, natural disasters or human-made crises and calamities, are taken into consideration when the sensitivity analysis is prepared. Actual occurrence could differ from these assumptions and such differences could be material. Credit risk Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. Financial instruments which potentially subject the Group to credit risk consist of cash and restricted cash, derivative financial instruments, debt securities, receivables and committed transactions (including loan commitments and financial guarantee contracts). The Group has deposited cash and entered into derivative financial instrument contracts with reputable financial institutions with high credit ratings and management believes the risk of loss from these counterparties to be remote. Note 26. Financial Instruments (continued) Most of the Group’s credit exposure is with counterparties in the merchant banking businesses and are subject to normal industry credit risk. The Group has receivables from various entities and credit risk from trade receivables is mitigated since they are credit insured, covered by letters of credit, bank guarantees and/or other credit enhancements. The Group routinely monitors credit risk exposure, including sector, geographic and corporate concentrations of credit and set and regularly review counterparties’ credit limits based on rating agency credit ratings and/or internal assessments of the customers and industry analysis. The Group also uses factoring and credit insurances to manage credit risk. Management believes that these measures minimize the Group’s overall credit risk; however, there can be no assurance that these processes will protect the Group against all losses from non-performance. The Group measures the loss allowance for a financial instrument at an amount equal to the lifetime expected credit losses or 12-month expected credit losses (see Note 2B(vi)). At each reporting date, the Group assesses whether the credit risk on a financial instrument that is measured at amortized cost or at FVTOCI has increased significantly since initial recognition. When making the assessment, the Group uses the change in the risk of a default occurring over the expected life of the financial instrument instead of the change in the amount of expected credit losses. To make that assessment, the Group compares the risk of a default occurring on the financial instrument as at the reporting date with the risk of a default occurring on the financial instrument as at the date of initial recognition and considers reasonable and supportable information, that is available without undue cost or effort, that is indicative of significant increases in credit risk since initial recognition. The Group assumes that the credit risk on a financial instrument has not increased significantly since initial recognition if the financial instrument is determined to have low credit risk at the reporting date. Under IFRS 9, there is a rebuttable presumption that the credit risk on a financial asset has increased significantly since initial recognition when contractual payments are more than 30 days past due; although, this rebuttable presumption is not an absolute indicator that lifetime expected credit losses should be recognized, but is presumed to be the latest point at which lifetime expected credit losses should be recognized even when using forward-looking information (including macroeconomic factors on a portfolio level). The credit risk on a financial instrument is considered low if the financial instrument has a low risk of default, the borrower has a strong capacity to meet its contractual cash flow obligations in the near term and adverse changes in economic and business conditions in the longer term may, but will not necessarily, reduce the ability of the borrower to fulfil its contractual cash flow obligations. Financial instruments are not considered to have low credit risk when they are regarded as having a low risk of loss simply because of the value of collateral and the financial instrument without that collateral would not be considered low credit risk. Financial instruments are also not considered to have low credit risk simply because they have a lower risk of default than the Group’s other financial instruments or relative to the credit risk of the jurisdiction within which the Group operates. To determine whether a financial instrument has low credit risk, the Group may use its internal credit risk ratings or other methodologies that are consistent with a globally understood definition of low credit risk and that consider the risks and the type of financial instruments that are being assessed. Generally, an external rating of “investment grade” is an example of a financial instrument that may be considered as having low credit risk. Financial instruments are considered to have low credit risk from a market participant perspective taking into account all of the terms and conditions of the financial instrument. A financial asset is credit-impaired when one or more events that have a detrimental impact on the estimated future cash flows of that financial asset have occurred. Evidence that a financial asset is credit-impaired include observable data about the following events: (a) significant financial difficulty of the issuer or the borrower; (b) a breach of contract, such as a default or past due event; (c) the lender(s) of the borrower, for economic or contractual reasons relating to the borrower’s financial difficulty, having granted to the borrower a concession(s) that the lender(s) would not otherwise consider; (d) it is becoming probable that the borrower will enter bankruptcy or other financial reorganization; (e) the disappearance of an active market for that financial asset because of financial difficulties; or (f) the purchase or origination of a financial asset at a deep discount that reflects the incurred credit losses. It may not be possible to identify a single discrete event; instead, the combined effect of several events may have caused financial assets to become credit-impaired. Note 26. Financial Instruments (continued) The Group adopts the presumption in IFRS 9 as its accounting policy that default does not occur later than when a financial asset is 90 days past due, unless it has reasonable and supportable information to demonstrate that a more lagging default criterion is more appropriate. The definition of default used for these purposes is applied consistently to all financial instruments unless information becomes available that demonstrates that another default definition is more appropriate for a particular financial instrument. The average contractual credit period for trade receivables is 25-45 days and up to 180 days for certain sales. The maximum credit risk exposure as at December 31, 2021 is as follows: Cash and restricted cash $ 55,015 Debt securities measured at FVTOCI 10,786 Trade and other receivables 68,610 Amounts recognized in the consolidated statement of financial position 134,411 Guarantees — Maximum credit risk exposure $ 134,411 See sub-heading of “Concentration risk” in this note on credit risk concentration. Liquidity risk Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. The Group requires liquidity specifically to fund capital requirements, satisfy financial obligations as they become due, and to operate its merchant banking business. The Group puts in place an actively managed production and capital expenditure budgeting process for major capital programs. The Group’s approach to managing liquidity is to ensure, as far as possible, that it always has sufficient liquidity to meet its liabilities when they fall due, under normal and stress conditions, without incurring unacceptable losses. The Group maintains an adequate level of liquidity, with a portion of its assets held in cash. It is the Group’s policy to invest cash in bank deposits for a period of less than three months. The Group may also invest in cash deposits with an original maturity date of more than three months so as to earn higher interest income. Generally, trade payables are due within 90 days and other payables and accrued expenses are due within one year. As at December 31, 2021, the Group had long-term bonds payable with interest payable annually and repayment of principal due in 2026. The timing of future payments is based on the Group’s historical payment patterns and management’s interpretation of contractual arrangements. The actual cash outflows might occur significantly earlier than indicated in the payment projection or be amounts significantly different from those indicated in the payment projection. Currency risk Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Group operates internationally and is exposed to risks from changes in foreign currency exchange rates, particularly the Euro, U.S. dollar and Hong Kong dollar. Currency risk arises principally from future trading transactions, and recognized assets and liabilities. In order to reduce the Group's exposure to foreign currency risk on material contracts (including intercompany loans) denominated in foreign currencies (other than the functional currencies of the Group companies), the Group may use foreign currency forward contracts and options to protect its financial positions. As at December 31, 2021 and 2020, the Group did not have any foreign currency derivative financial instruments (foreign currency forward contracts and options) outstanding. Note 26. Financial Instruments (continued) The Group holds cash balances in renminbi (“RMB”) in the People’s Republic of China (“PRC”). The PRC imposes controls on the convertibility of RMB, the official currency of the PRC, into foreign currencies. The value of RMB is subject to changes in the central government policies and to international economic and political developments affecting supply and demand in the PRC foreign exchange trading system market. In the PRC, certain foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the People’s Bank of China (the “PBOC”). The Group does not have any material exposure to highly inflationary foreign currencies. Sensitivity analysis: At December 31, 2021, if the U.S. dollar had weakened 10% against the Group companies' functional currencies with all other variables held constant, net income for the year ended December 31, 2021 would have decreased by $481. Conversely, if the U.S. dollar had strengthened 10% against the Group companies' functional currencies with all other variables held constant, net income for the year ended December 31, 2021 would have increased by $496. The reason for such change is mainly due to certain U.S. dollar denominated financial instrument assets (net of liabilities) held by entities whose functional currencies were not the U.S. dollar. There would have been no material impact arising from financial instruments on other comprehensive income in either case. At December 31, 2021, if the Euro had weakened 10% against the Group companies' functional currencies with all other variables held constant, net income for the year ended December 31, 2021 would have increased by $3,568. Conversely, if the Euro had strengthened 10% against the Group companies' functional currencies with all other variables held constant, net income for the year ended December 31, 2021 would have decreased by $3,568. The reason for such change is mainly due to certain Euro denominated financial instrument liabilities (net of assets) owed by entities whose functional currencies were not the Euro. There would have been no impact arising from financial instruments on other comprehensive income in either case. At December 31, 2021, if the Hong Kong dollar had weakened 10% against the Group companies' functional currencies with all other variables held constant, net income for the year ended December 31, 2021 would have decreased by $5,134. Conversely, if the Hong Kong dollar had strengthened 10% against the Group companies' functional currencies with all other variables held constant, net income for the year ended December 31, 2021 would have increased by $5,134. The reason for such change is mainly due to certain Hong Kong dollar denominated financial instrument assets held by entities whose functional currencies were not the Hong Kong dollar. There would have been no impact arising from financial instruments on other comprehensive income in either case. Interest rate risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Short-term financial assets and financial liabilities are generally not exposed to significant interest rate risk because of their short-term nature. As at December 31, 2021, the Group had long-term bonds payable measured at amortized cost which bear a fixed interest rate. Sensitivity analysis: At December 31, 2021, if benchmark interest rates (such as IBORs or prime rates) at that date had been 100 basis points (1.00%) per annum lower with all other variables held constant, net income for the year ended December 31, 2021 would have decreased by $710. Conversely, if the benchmark interest rate had been 100 basis points per annum higher with all other variables held constant, net income for the year ended December 31, 2021 would have increased by $614. The reason for such change is mainly due to the loan payable measured at FVTPL. There would have been no impact arising from financial instruments on the Group's other comprehensive income in either case. Note 26. Financial Instruments (continued) Other price risk Other price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer or by factors affecting all similar financial instruments traded in the market. The Group’s other price risk includes equity price risk whereby the Group’s investments in equities of other entities that are classified as held for trading are subject to market price fluctuations. Sensitivity analysis: At December 31, 2021, if equity prices in general had weakened 10% with all other variables held constant, net income for the year ended December 31, 2021 would have decreased by $684. Conversely, if equity prices in general had strengthened 10% with all other variables held constant, net income for the year ended December 31, 2021 would have increased by $684. There would have been no impact on other comprehensive income in either case. In addition, the Group buys and sells futures contracts on the London Metal Exchange and enters into financial derivative contracts (e.g. futures and swaps) with banks, customers and brokers. Management uses the financial derivative contracts to manage the price fluctuations for its own account or for customers. As at December 31, 2021 and 2020, the Group did not have any outstanding derivative financial instruments. As these future contracts are to hedge against the Group’s physical inventory position, any change in the fair value of the future contracts will offset the change in the fair value, though in opposite direction, of the physical inventories. As a result, the sensitivity analysis of the price risk arising from the future contracts on the Group is not applicable. Concentration risk Management determines the concentration risk threshold amount as any single financial asset (or liability) exceeding 10% of total financial assets (or liabilities) in the Group’s consolidated statement of financial position. In the PRC, foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the PBOC. Remittances in currencies other than RMB by the Group in the PRC must be processed through the PBOC or other PRC foreign exchange regulatory bodies and require certain supporting documentation in order to effect the remittance. If such foreign exchange control system prevents the Group from obtaining sufficient foreign currencies to satisfy its currency demands, the Group may not be able to pay dividends in foreign currencies and the Group’s ability to fund its business activities that are conducted in foreign currencies could be adversely affected. As at December 31, 2021, royalty receivables due from a customer in the Royalty segment (see Note 8) represented 9% of total financial receivables, and an indemnification asset and receivables due from an affiliate (see Note 8) represented 79% of total financial receivables and 37% of total financial assets. Except as disclosed in the preceding paragraph, at December 31, 2021, there were no customer, company or entity holding financial assets or liabilities exceeding the threshold amounts. Note 26. Financial Instruments (continued) Additional disclosure In addition to information disclosed elsewhere in these consolidated financial statements, the Group had significant items of income, expense, and gains and losses resulting from financial assets and financial liabilities which were included in profit or loss for the years ended December 31, 2021, 2020 and 2019 as follows: 2021 2020 2019 Interest income on financial assets not at FVTPL $ 191 $ 483 $ 955 Interest income on financial assets classified at FVTPL 214 48 102 Total interest income $ 405 $ 531 $ 1,057 Interest expense on financial liabilities not at FVTPL $ 1,730 $ 1,856 $ 710 Interest expense on financial liabilities classified at FVTPL 18 25 30 Total interest expense $ 1,748 $ 1,881 $ 740 Dividend income on financial assets at FVTPL $ 244 $ — $ — Dividend income on financial assets classified not at FVTPL — — — Net (loss) gain on financial assets at FVTPL (722) 692 1,142 Loss on loan payable at FVTPL (1,616) (549) (979) Reversal of (impairment) on securities measured at FVTOCI — 3 (3) |
Fair Value Disclosure for Non-f
Fair Value Disclosure for Non-financial Assets | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosure for Non-financial Assets | |
Fair Value Disclosure for Non-financial Assets | Note 27. Fair Value Disclosure for Non-financial Assets The following tables present non-financial assets which are measured at or based on fair value in the consolidated statements of financial position, classified by level of the fair value hierarchy: Assets measured at fair value on a recurring basis as at December 31, 2021: Level 1 Level 2 Level 3 Investment property $ — $ — $ 34,430 Assets measured at fair value on a recurring basis as at December 31, 2020: Level 1 Level 2 Level 3 Investment property $ — $ — $ 36,908 The fair values of investment property are measured using an income approach which includes the following inputs: land value, realized basic rents, operating costs, discount rates and damages and defects (level 3 fair value hierarchy). The valuation approach was consistent for both 2021 and 2020. Both the 2021 and 2020 valuations were performed by an independent external valuator who is an authorized expert for the valuation of developed and undeveloped land in Germany and holds recognized and relevant professional qualifications and has recent experience in the location and category of the investment property being valued. |
Significant Subsidiaries
Significant Subsidiaries | 12 Months Ended |
Dec. 31, 2021 | |
Significant Subsidiaries | |
Significant Subsidiaries | Note 28. Significant Subsidiaries A subsidiary is an entity that is controlled by Scully. The following table shows the Company’s direct and indirect significant subsidiaries as at December 31, 2021. The table excludes subsidiaries which only hold intercompany assets and liabilities and do not have an active business as well as subsidiaries whose results and net assets did not materially impact the consolidated results and net assets of the Group. Country of Proportion of Subsidiaries Incorporation Interest * Merkanti Holding plc. Malta 99.96% 1178936 B.C. Ltd. Canada 100% Merkanti (A) International Ltd. Malta 99.96% Merkanti (D) International Ltd. Malta 99.96% * The Group's proportional voting interests are identical to its proportional beneficial interests, except that it holds a 99.68% proportional beneficial interest in each of Merkanti (A) International Ltd. and Merkanti (D) International Ltd. As at December 31, 2021, the Group controlled entities in which the Group held more than 50% of the voting rights and did not control any entities in which the Group held 50% or less of the voting rights. The Group’s proportional voting interests in the subsidiaries are identical to its proportional beneficial interests except as described above. As at December 31, 2021, none of the non-controlling interests are material to the Group. As at December 31, 2021, there were no significant restrictions (statutory, contractual and regulatory restrictions, including protective rights of non-controlling interests) on Scully’s ability to access or use the assets and settle the liabilities of the Group except for amounts presented as restricted cash. See “Currency Risk” in Note 26. During the year ended December 31, 2020, the Group disposed of a wholly-owned subsidiary and a majority-owned subsidiary, resulting in a net loss of $546 which was included in the consolidated statement of operations. During the year ended December 31, 2020, Merkanti Holding issued 20,000 shares to an outside party for a cash consideration of $8 and a receivable of $23 (which was collected in January 2022), resulting in the Group's shareholding in Merkanti Holding reduced from 100% to 99.96%. During the year ended December 31, 2019, the Group put a subsidiary into a voluntary dissolution (see Note 4), sold the shares of certain manufacturing/processing subsidiaries and abandoned certain inactive subsidiaries, resulting in a net gain of $2,243 (see Note 18) which was included in the consolidated statement of operations. In addition, the Group issued shares in a subsidiary to a third-party, resulting in a gain of $229 which was credited to retained earnings directly. During the year ended December 31, 2017, two subsidiaries, pursuant to the terms of respective option deeds (see Note 23), issued shares to the non-controlling interests. These share issuances were accounted for as equity transactions and were credited to non-controlling interests directly and the shares so issued represented less than 0.5% of the ownership of each such subsidiary as of December 31, 2021. In January 2020, certain rights to purchase shares in the entities with pre-determined prices were issued, exercisable until 2026. In April 2020, those rights were cancelled. For further details, see Note 23. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events | |
Subsequent Events | Note 29. Subsequent Events Business Combination In March 2022, the Company announced that its subsidiary, Merkanti Holding, the parent of Merkanti Bank Ltd. (“Merkanti Bank”) had signed a definitive agreement to acquire Sparkasse (Holdings) Malta Ltd. a company registered in Malta (“Sparkasse Holdings”), the parent of Sparkasse Bank Malta plc (“Sparkasse Bank”). Merkanti Holding is acquiring Sparkasse Holdings and the total consideration is approximately equal to the net tangible asset value of Sparkasse Holdings, less certain adjustments, and includes (i) a cash payment at closing of the transaction, (ii) three consecutive annual payments of €2.5 million; and (iii) a contingent payment, payable solely upon the recovery (if any) of an asset of Sparkasse Bank which was previously written off in its entirety. The consideration is expected to be satisfied through cash on hand and available liquidity within the Group. Upon closing of this transaction, and subject to regulatory approval, it is the intention to merge Sparkasse Bank and Merkanti Bank, in order to form a larger independent financial institution. The transaction is conditional upon the satisfaction of certain customary conditions precedent such as regulatory approval from various regulators, including the European Central Bank, the Malta Financial Services Authority and the Central Bank of Ireland. The acquisition is currently expected to be concluded in the second half of calendar year 2022. Cash Dividend In February 2022, the Company declared its first dividend of $3,714($0.25 (US$0.18) per share), which was paid on March 4, 2022. On April 29, the Company announced that its board of directors declared a cash dividend of $0.34 (US$0.27) per share, which will be paid in US dollars on May 23, 2022 to shareholders of record on May 10, 2022. |
Approval of Consolidated Financ
Approval of Consolidated Financial Statements | 12 Months Ended |
Dec. 31, 2021 | |
Approval of Consolidated Financial Statements | |
Approval of Consolidated Financial Statements | Note 30. Approval of Consolidated Financial Statements These consolidated financial statements were approved by the Board of Directors and authorized for issue on April 29, 2022. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Basis of Presentation and Summary of Significant Accounting Policies | |
Basis of Accounting | Basis of Accounting These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (the “IASB”). Scully complies with all the requirements of IFRS. The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied. These consolidated financial statements were prepared using going concern, accrual (except for cash flow information) and historical cost (except for investment property and certain financial assets and financial liabilities which are measured at fair value and certain inventories that are measured at fair value less costs to sell) bases. In assessing the Company’s ability to continue as a going concern and the appropriateness of assuming the going concern basis in the preparation of its consolidated financial statements, management considered the impact and potential impact from the outbreak of a novel coronavirus (“COVID-19”) in 2019 and the subsequent spread of the virus globally through 2020 and 2021 (see Note 2D(v)). The presentation currency of these consolidated financial statements is the Canadian dollar ($), rounded to the nearest thousand (except per share amounts and currency rates), unless otherwise indicated. |
Principles of Consolidation | Principles of Consolidation These consolidated financial statements include the accounts of Scully and entities it controls. The Company controls an investee if and only if it has all the following: (a) power over the investee; (b) exposure, or rights, to variable returns from its involvement with the investee; and (c) the ability to use its power over the investee to affect the amount of its returns. When the Group holds, directly or indirectly, more than 50% of the voting power of an investee, it is presumed that the Group controls the investee, unless it can be clearly demonstrated that this is not the case. Subsidiaries are consolidated from the date of their acquisition, being the date on which the Group obtains control, and continue to be consolidated until the date that such control ceases. All intercompany balances and transactions, including unrealized profits arising from intragroup transactions, have been eliminated in full. Unrealized losses are eliminated unless the transaction provides evidence of an impairment of the asset transferred. On the acquisition date, a non-controlling interest is measured at either its fair value or its proportionate share in the recognized amounts of the subsidiary’s identifiable net assets, on a transaction-by-transaction basis. Subsequently, the non-controlling interest increases or decreases for its share of changes in equity since the acquisition date. After initial consolidation of a subsidiary, when the proportion of equity held by non-controlling interests changes, the Group, as long as it continues to control the subsidiary, adjusts the carrying amounts of the controlling and non-controlling interests to reflect the changes in their relative interests in the subsidiary. The Group recognizes directly in equity any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received and attributes such difference to the owners of Scully. Note 2. Basis of Presentation and Summary of Significant Accounting Policies (continued) When the Group loses control of a subsidiary it: (a) derecognizes (i) the assets (including any goodwill) and liabilities of the subsidiary at their carrying amounts at the date when control is lost and (ii) the carrying amount of any non-controlling interests in the former subsidiary at the date when control is lost (including any components of other comprehensive income attributable to them); (b) recognizes (i) the fair value of the consideration received, if any, from the transaction, event or circumstances that resulted in the loss of control, (ii) if the transaction, event or circumstances that resulted in the loss of control involves a distribution of shares of the subsidiary to owners in their capacity as owners, that distribution and (iii) any investment retained in the former subsidiary at its fair value at the date when control is lost; (c) reclassifies to profit or loss, or transfers directly to retained earnings if required by IFRS, the amounts recognized in other comprehensive income in relation to the subsidiary; and (d) recognizes any resulting difference as a gain or loss under costs of sales and services in profit or loss attributable to the owners of Scully. The financial statements of Scully and its subsidiaries used in the preparation of these consolidated financial statements are prepared as of the same date, using uniform accounting policies for like transactions and other events in similar circumstances. |
Foreign Currency Translation | Foreign Currency Translation The presentation currency of the Group’s consolidated financial statements is the Canadian dollar. Scully conducts its business throughout the world through its foreign operations. Foreign operations are entities that are subsidiaries or branches, the activities of which are based or conducted in countries or currencies other than those of Scully. Functional currency is the currency of the primary economic environment in which an entity operates and is normally the currency in which the entity primarily generates and expends cash. Foreign currency is a currency other than the functional currency of the entity. The functional currencies of the Company and its subsidiaries and branches primarily comprise the Canadian dollar, Euro (“EUR” or “€”) and United States dollar (“US$”). Reporting foreign currency transactions in the functional currency A foreign currency transaction is a transaction that is denominated or requires settlement in a foreign currency. A foreign currency transaction is recorded, on initial recognition in an entity’s functional currency, by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction. At the end of each reporting period: (a) foreign currency monetary items are translated using the closing rate; (b) non-monetary items denominated in a foreign currency that are measured in terms of historical cost are translated using the exchange rate at the date of the transaction; and (c) foreign currency non-monetary items that are measured at fair value are translated using the exchange rates at the date when the fair value was determined. Exchange differences arising on the settlement of monetary items or on translating monetary items at rates different from those at which they were translated on initial recognition during the period or in previous periods are recognized in profit or loss in the period in which they arise, except for exchange differences arising on a monetary item that forms part of a reporting entity’s net investment in a foreign operation which are initially recorded in other comprehensive income in the consolidated financial statements and reclassified from equity to profit or loss on disposal of the net investment. When a gain or loss on a non-monetary item is recognized in other comprehensive income, any exchange component of that gain or loss is recognized in other comprehensive income. Conversely, when a gain or loss on a non-monetary item is recognized in profit or loss, any exchange component of that gain or loss is recognized in profit or loss. Note 2. Basis of Presentation and Summary of Significant Accounting Policies (continued) Use of a presentation currency other than the functional currency When an entity presents its financial statements in a currency that differs from its functional currency, the results and financial position of the entity are translated into the presentation currency using the following procedures: (a) assets and liabilities for each statement of financial position presented are translated at the closing rate at the date of the statement of financial position; (b) income and expenses for each statement of operations presented are translated at exchange rates at the dates of the transactions or, for practical reasons, the average exchange rates for the periods when they approximate the exchange rates at the dates of the transactions; (c) individual items within equity are translated at either the historical exchange rates when practical or at the closing exchange rates at the date of the statement of financial position; and (d) all resulting exchange differences are recognized in other comprehensive income. The following table sets out exchange rates for the translation of the Euro and United States dollar, which represented the major trading currencies of the Group, into the Canadian dollar: EUR US$ Closing rate at December 31, 2021 1.4391 1.2678 Average rate for the year 2021 1.4828 1.2535 Closing rate at December 31, 2020 1.5608 1.2732 Average rate for the year 2020 1.5298 1.3415 Closing rate at December 31, 2019 1.4583 1.2988 Average rate for the year 2019 1.4856 1.3269 |
Fair Value Measurement | Fair Value Measurement Certain assets and liabilities of the Group are measured at fair value (see Note 2B). Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement is for a particular asset or liability. Therefore, when measuring fair value, the Group takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. A fair value measurement assumes that the transaction to sell the asset or transfer the liability takes place either: (a) in the principal market for the asset or liability; or (b) in the absence of a principal market, in the most advantageous market for the asset or liability. The Group measures the fair value of an asset or a liability using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data is available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. IFRS 13, Fair Value Measurement , Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Note 2. Basis of Presentation and Summary of Significant Accounting Policies (continued) Level 3 inputs are unobservable inputs for the asset or liability. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgment, considering factors specific to the asset or liability. |
Non-current Assets Held for Sale | Non-current Assets Held for Sale A non-current asset (or disposal group) is classified as held for sale if its carrying amount will be recovered principally through a sale transaction rather than through continuing use. For this to be the case, the asset (or disposal group) must be available for immediate sale in its present condition subject only to terms that are usual and customary for the sale of such asset (or disposal group), the appropriate level of management must be committed to a plan to sell the asset (or disposal group) and an active program to locate a buyer and complete the plan must have been initiated. Further, the asset (or disposal group) must be actively marketed for sale at a price that is reasonable in relation to its current fair value and the sale is highly probable to complete within one year from the date of classification, except as permitted under certain events and circumstances. If the aforesaid criteria are no longer met, the Group ceases to classify the asset (or disposal group) as held for sale. Non-current assets (and disposal groups) classified as held for sale are measured at the lower of their carrying amounts and fair values less costs to sell. The Group does not depreciate or amortize a non-current asset while it is classified as held for sale. |
Use of Estimates and Assumptions and Measurement Uncertainty | Use of Estimates and Assumptions and Measurement Uncertainty The timely preparation of the consolidated financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Management’s best estimates are based on the facts and circumstances available at the time estimates are made, historical experience, general economic conditions and trends and management’s assessment of probable future outcomes of these matters. Actual results could differ from these estimates and such differences could be material. For critical judgments in applying accounting policies and major sources of estimation uncertainty. See Notes 2C and 2D. |
Financial Instruments | (i) Financial Instruments Financial assets and financial liabilities are recognized in the consolidated statement of financial position when the Group becomes a party to the financial instrument contract. A financial asset is derecognized either when the Group has transferred the financial asset and substantially all the risks and rewards of ownership of the financial asset or when the contractual rights to the cash flows expire. A financial liability is derecognized when the obligation specified in the contract is discharged, cancelled or expired. The Group classifies its financial assets into the following measurement categories: (a) subsequently measured at fair value (either through other comprehensive income (“FVTOCI”) or through profit or loss (“FVTPL”) and (b) subsequently measured at amortized cost. The classification of financial assets depends on the Group’s business model for managing the financial assets and the terms of the contractual cash flows. The Group classifies its financial liabilities as subsequently measured at amortized cost, except for financial liabilities at FVTPL. Change in the fair value of a loan payable measured at FVTPL is included in costs of sales and services. Regular way purchases and sales of financial assets are accounted for at the settlement date. Note 2. Basis of Presentation and Summary of Significant Accounting Policies (continued) When a financial asset or financial liability is recognized initially, the Group measures it at its fair value plus, in the case of a financial asset or financial liability not at FVTPL, transaction costs that are directly attributable to the acquisition or issue of the financial asset or financial liability. Transaction costs related to the acquisition or issue of a financial asset or financial liability at FVTPL are expensed as incurred. The subsequent measurement of a financial instrument and the recognition of associated gains and losses are determined by the financial instrument classification. A gain or loss on a financial asset or financial liability classified as at FVTPL is recognized in profit or loss for the period in which it arises. A gain or loss on an asset measured at FVTOCI is recognized in other comprehensive income, except for impairment losses, until the financial asset is derecognized, at which time the cumulative gain or loss previously recognized in accumulated other comprehensive income is recognized in profit or loss for the period. For financial assets and financial liabilities carried at amortized cost, a gain or loss is recognized in profit or loss when the financial asset or financial liability is derecognized or impaired and through the amortization process. Net gains or net losses on financial instruments at FVTPL do not include interest or dividend income. Whenever quoted market prices are available, bid prices are used for the measurement of fair value of financial assets while ask prices are used for financial liabilities. When the market for a financial instrument is not active, the Group establishes fair value by using a valuation technique. Valuation techniques include using recent arm’s length market transactions between knowledgeable, willing parties, if available; reference to the current fair value of another financial instrument that is substantially the same; discounted cash flow analysis; option pricing models; and other valuation techniques commonly used by market participants to price the financial instrument. |
Cash | (ii) Cash Cash include cash on hand and cash at banks which have maturities of three months or less from the date of acquisition and are generally interest-bearing. Restricted cash refers to money that is held for a specific purpose and therefore not available to the Group for immediate or general business use. Restricted cash is accounted for as a separate item from cash on the Group’s consolidated statements of financial position. |
Securities | (iii) Securities Investments in equity securities are measured at FVTPL. Debt securities which are held within a business model whose objective is to collect the contractual cash flows and sell the debt securities, and have contractual cash flows that are solely payments of principal and interest on the principal outstanding are measured at FVTOCI. A gain or loss on a financial asset measured at FVTOCI is recognized in other comprehensive income, except for impairment gains or losses and foreign exchange gains and losses, until the financial asset is derecognized. When the financial asset is derecognized, the cumulative gain or loss previously recognized in other comprehensive income is reclassified from equity to profit or loss as a reclassification adjustment. Interest calculated using the effective interest method is recognized in profit or loss. Debt securities which are not held within a business model whose objective is to collect the contractual cash flows and sell the debt securities, or that do not have contractual cash flows that are solely payments of principal and interest on the principal outstanding are measured at FVTPL. Gains and losses on sales of securities are calculated on the average cost basis. |
Securities and Financial Liabilities - Derivatives | (iv) Securities and Financial Liabilities – Derivatives A derivative is a financial instrument or other contract with all three of the following characteristics: (a) its value changes in response to the change in a specified interest rate, financial instrument price, product price, foreign exchange rate, index of prices or rates, credit rating or credit index, or other variable; (b) it requires no initial net investment or an initial net investment that is smaller than would be required for other types of contracts that would be expected to have a similar response to changes in market factors; and (c) it is settled at a future date. A derivative financial instrument is either exchange-traded or negotiated. A derivative financial instrument is included in the consolidated statements of financial position as a security (i.e. financial asset) or a financial liability and measured at FVTPL. The recognition and measurement of a derivative financial instrument does not apply to a contract that is entered into and continues to be held for the purpose of the receipt or delivery of a non-financial item in accordance with the Group’s expected purchase, sale or usage requirements, unless the Group, as allowed under IFRS 9, Financial Instruments Where the Group has both the legal right and intent to settle derivative assets and liabilities simultaneously with the counterparty, the net fair value of the derivative financial instruments is reported as an asset or liability, as appropriate. Changes in the fair values of derivative financial instruments that do not qualify for hedge accounting are recognized in profit or loss as they arise. |
Receivables | (v) Receivables Generally, trade and other receivables are measured at amortized cost. Receivables are net of an allowance for credit losses, if any. The Group performs ongoing credit evaluations of its customers and recognizes a loss allowance for expected credit losses. Receivables are considered past due on an individual basis based on the terms of the contracts. |
Allowance for Credit Losses | (vi) Allowance for Credit Losses The Group recognizes and measures a loss allowance for expected credit losses on a financial asset which is measured at amortized cost or at FVTOCI, including a lease receivable, a contract asset or a loan commitment and a financial guarantee contract. The impairment methodology applied depends on whether there has been a significant increase in credit risk since initial recognition. To assess whether there is a significant increase in credit risk, the Group compares the risk of a default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition based on all information available, and reasonable and supportive forward-looking information. When there is a significant increase in credit risk or for credit-impaired financial assets, the loss allowance equals the lifetime expected credit losses which is defined as the expected credit losses that result from all possible default events over the expected life of a financial instrument. If, at the reporting date, the credit risk on a financial asset has not increased significantly since initial recognition, the Group measures the loss allowance for the financial instrument at an amount equal to the 12-month expected credit losses which is defined as the portion of lifetime expected credit losses that represent the expected credit losses that result from default events on the financial instrument that are possible within the 12 months after the reporting date. As required by IFRS 9, the Group always measures the loss allowance at an amount equal to lifetime expected credit losses for trade receivables and contract assets that result from transactions that are within the scope of IFRS 15, Revenue from Contracts with Customers Note 2. Basis of Presentation and Summary of Significant Accounting Policies (continued) The Group’s allowance for credit losses is maintained at an amount considered adequate to absorb expected or estimated credit-related losses. Such allowance reflects management’s best estimate of the losses in the Group’s financial assets and judgments about economic conditions. Estimates and judgments could change in the near term, and could result in a significant change to a recognized allowance. An allowance for credit losses is increased by provisions, which are recognized in profit or loss and reduced by write-offs net of any recoveries. Write-offs are generally recorded after all reasonable restructuring or collection activities have taken place and there is no realistic prospect of recovery. |
Inventories | (vii) Inventories Inventories principally consist of raw materials, work-in-progress, and finished goods. Inventories, other than commodities products, are recorded at the lower of cost and net realizable value. Cost, where appropriate, includes an allocation of manufacturing overheads incurred in bringing inventories to their present location and condition and is assigned by using the first-in, first-out or weighted average cost formula, depending on the class of inventories. Net realizable value represents the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution. The amount of any write-down of inventories to net realizable value and all losses of inventories are recognized as an expense in the period the write-down or loss occurs. The reversal of a write-down of inventories arising from an increase in net realizable value is recognized as a reduction in the amount of costs of sales and services in the period in which the reversal occurs. Commodity products acquired by the Group as a broker-trader in the Group’s merchant banking activities with the purpose of selling in the near future and generating a profit from fluctuations in price or broker-traders’ margin are measured at fair value less costs to sell. Fair values of the Group’s inventories are determined by reference to their contractual selling prices or quoted prices in marketplaces in the absence of a contract (Level 1 of the fair value hierarchy), in accordance with IFRS 13. |
Real Estate Held for Sale | (viii) Real Estate for Sale Real estate for sale is real estate intended for sale in the ordinary course of business or in the process of construction or development for such sale. The Group’s real estate for sale forms part of the security package for the €25,000 in principal amount of bonds (see Note 15) issued by Merkanti Holding plc (“Merkanti Holding”) in the year ended December 31, 2019, and to the extent that any sales of these properties, in whole or in part, cause the security to fall below a certain ratio, proceeds of said sale, up to an amount of the collateral shortfall, are required to be placed as cash collateral with the bondholder trustee until maturity. Real estate for sale is measured at the lower of cost (on a specific item basis) and net realizable value. Net realizable value is estimated by reference to sale proceeds of similar properties sold in the ordinary course of business less all estimated selling expenses around the reporting date, or by management estimates based on prevailing market conditions. The amount of any write-down of properties to net realizable value is recognized as an expense in the period the write-down occurs. The reversal of a write-down arising from an increase in net realizable value is recognized in the period in which the reversal occurs. All of the Group’s real estate is located in Europe. |
Investment Property | (ix) Investment Property Investment property is property that is held for generating rental income or for capital appreciation or both, rather than for: (a) use in the production or supply of goods or services or for administrative purposes; or (b) sale in the ordinary course of business. The Group’s investment property comprises freehold land and buildings. The Group’s investment property forms part of the security package for the €25,000 in principal amount of bonds (see Note 15) issued by Merkanti Holding in the year ended December 31, 2019. Investment property is initially recognized at cost including related transaction costs. After initial recognition, investment property is measured at fair value, with changes in fair value recognized in profit or loss in the period in which they arise. Note 2. Basis of Presentation and Summary of Significant Accounting Policies (continued) The Group determines fair value without any deduction for transaction costs it may incur on sale or other disposal. Fair value of the Group’s investment property is based on valuations prepared annually by external evaluators in accordance with guidance issued by the International Valuation Standards Council and reviewed by the Group, or these valuations are updated by management when there are no significant changes in the inputs to the valuation prepared by external evaluators in the preceding year, in accordance with guidance on fair value in IFRS 13. |
Property, Plant and Equipment | (x) Property, Plant and Equipment Property, plant and equipment are carried at cost, net of accumulated depreciation and, if any, accumulated impairment losses. The initial cost of an item of property, plant and equipment comprises its purchase price or construction cost, any costs directly attributable to bringing the asset into operation, the initial estimate of any decommissioning obligation, if any, and, for qualifying assets, borrowing costs. The purchase price or construction cost is the aggregate amount paid and the fair value of any other consideration given to acquire the asset. Where an item of property, plant and equipment or part of the item that was separately depreciated is replaced and it is probable that future economic benefits associated with the replacement item will flow to the Group, the cost of the replacement item is capitalized and the carrying amount of the replaced asset is derecognized. All other replacement expenditures are recognized in profit or loss when incurred. Inspection costs associated with major maintenance programs are capitalized and amortized over the period to the next inspection. All other maintenance costs are expensed as incurred. When a right-of-use asset is acquired under a lease contract, the asset is measured at cost at the commencement date. The cost of the right-of-use asset comprises: (a) the amount of the initial measurement of the lease liability; (b) any lease payments made at or before the commencement date, less any lease incentives received; (c) any initial direct costs incurred by the Group; and (d) an estimate of costs to be incurred by the Group in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease, unless those costs are incurred to produce inventories. After the commencement date, the Group measures the right-of-use asset applying a cost model whereby the Group measures the right-of-use asset at cost less any accumulated depreciation and any accumulated impairment losses and adjusts it for any remeasurement of the lease liabilities reflecting any reassessment, lease modifications or revised in-substance fixed lease payments. The Group elected to apply IFRS 16, Leases Leases, Carrying amount of property, plant and equipment as at December 31, 2018 $ 58,325 Adjustment for the lease liabilities under IFRS 16 on the date of initial application 2,911 Carrying amount of property, plant and equipment recognized on the initial adoption of IFRS 16 as at January 1, 2019 $ 61,236 Note 2. Basis of Presentation and Summary of Significant Accounting Policies (continued) The depreciable amounts of the Group’s property, plant, and equipment (i.e. the costs of the assets less their residual values) are depreciated according to the following estimated useful lives and methods, other than the right-of-use assets which are depreciated from lease commencement dates to the earlier of the end of their useful lives or the end of their lease terms: Lives Method Processing plant and equipment 5 to 20 years straight-line Refinery and power plants 20 to 30 years straight-line Office equipment and other 3 to 10 years straight-line Office premises 2 to 10 years straight-line Depreciation expense is included in costs of sales and services or selling, general and administrative expense, whichever is appropriate. The residual value and the useful life of an asset are reviewed at least at each financial year-end and, if expectations differ from previous estimates, the changes, if any, are accounted for as a change in an accounting estimate in accordance with IAS 8, Accounting Policies, Changes in Accounting Estimates and Errors The carrying amount of an item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the item) is included in profit or loss in the period in which the item is derecognized. |
Interests in Resource Properties | (xi) Interests in Resource Properties The Group’s interests in resource properties are mainly comprised of an interest in the Scully iron ore mine, and to a lesser extent, exploration and evaluation assets (comprising hydrocarbon probable reserves and hydrocarbon undeveloped lands) and hydrocarbon development and production assets. (a) Exploration and evaluation assets Exploration and evaluation costs, including the costs of acquiring undeveloped land and drilling costs are initially capitalized until the drilling of the well is complete and the results have been evaluated in order to determine the technical feasibility and commercial viability of the asset. Technical feasibility and commercial viability are considered to be determinable when proved and/or probable reserves are determined to exist. When proved and/or probable reserves are found, the drilling costs and the costs of associated hydrocarbon undeveloped lands are reclassified to hydrocarbon development and production assets or from hydrocarbon undeveloped lands to hydrocarbon probable reserves. The cost of hydrocarbon undeveloped land that expires or any impairment recognized during a period is charged to profit or loss. Pre-licence costs are recognized in profit or loss as incurred. (b) Hydrocarbon development and production assets and an iron ore royalty interest (1) Recognition and measurement Interests in resource properties are initially measured at cost and subsequently carried at cost less accumulated depletion and, if any, accumulated impairment losses. Note 2. Basis of Presentation and Summary of Significant Accounting Policies (continued) The cost of an interest in resource property includes the initial purchase price and directly attributable expenditures to find, develop, construct and complete the asset. This cost includes reclassifications from exploration and evaluation assets, installation or completion of infrastructure facilities such as platforms, pipelines and the drilling of development wells, including unsuccessful development or delineation wells. Any costs directly attributable to bringing the asset to the location and condition necessary to operate as intended by management and result in an identifiable future benefit are also capitalized. These costs include an estimate of decommissioning obligations and, for qualifying assets, capitalized borrowing costs. (2) Subsequent costs Costs incurred subsequent to the determination of technical feasibility and commercial viability and the costs of replacing parts of property are capitalized only when they increase the future economic benefits embodied in the specific asset to which they relate. Such capitalized costs generally represent costs incurred in developing proved reserves and bringing in, or enhancing production from, such reserves and are accumulated on a field or geotechnical area basis. All other expenditures are recognized in profit or loss as incurred. The costs of periodic servicing of the properties are recognized in costs of sales and services as incurred. The carrying amount of any replaced or sold component is derecognized. (3) Depletion The carrying amount of an interest in a resource property is depleted using the unit of production method by reference to the ratio of production in the period to the related reserves. For interests in hydrocarbon development and production assets, depletion is calculated based on proved producing reserves, taking into account estimated future development costs necessary to bring those reserves into production and the estimated salvage values of the assets at the end of their estimated useful lives. Future development costs are estimated taking into account the level of development required to continue to produce the reserves. Reserves for hydrocarbon development and production assets are estimated annually by independent qualified reserve evaluators and represent the estimated quantities of natural gas, natural gas liquids and crude oil which geological, geophysical and engineering data demonstrate with a specified degree of certainty to be recoverable in future years from known reservoirs and which are considered commercially producible. For depletion purposes, relative volumes of petroleum and natural gas production and reserves are converted at the energy equivalent conversion rate of six For the interest in an iron ore mine, depletion is calculated based on proved and probable reserves. The estimate of the reserves of iron ore is reviewed whenever significant new information about the reserve is available, or at least at each financial year-end. |
Impairment of Non-financial Assets | (xii) Impairment of Non-financial Assets The Group reviews the carrying amounts of its non-financial assets at each reporting date to determine whether there is any indication of impairment. If any such indication exists, an asset’s recoverable amount is estimated. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use. Where an individual asset does not generate separately identifiable cash flows, an impairment test is performed at the cash-generating unit (“CGU”) level. A CGU is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. Where the carrying amount of an asset (or CGU) exceeds its recoverable amount, the asset (or CGU) is considered impaired and written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal, an appropriate valuation model is used. These calculations are corroborated by external valuation metrics or other available fair value indicators wherever possible. Note 2. Basis of Presentation and Summary of Significant Accounting Policies (continued) An assessment is made at the end of each reporting period whether there is an indication that previously recognized impairment losses no longer exist or have decreased. If such indication exists, an estimate of the asset’s (or CGU’s) recoverable amount is reviewed. A previously recognized impairment loss is reversed to the extent that the events or circumstances that triggered the original impairment have changed. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, depletion and amortization, had no impairment loss been recognized for the asset in prior periods. A reversal of an impairment loss for a CGU is allocated to the assets of the CGU pro-rata with the carrying amounts of those assets. The Group’s interest in iron ore mine is assessed at the end of each reporting period whether there is any indication that the interest may be impaired. Impairment is recognized if the recoverable amount, determined as its value in use, is less than the carrying value. The Group’s interest in the iron ore mine is an individual asset which generates cash flows that are completely independent of those from other assets. As a result, the interest in the iron ore mine is tested for impairment on a standalone basis. Hydrocarbon probable reserves are tested for impairment when they are reclassified to hydrocarbon development and production assets or when indicators exist that suggest the carrying amount may exceed the recoverable amount. For purposes of impairment testing, hydrocarbon probable reserves are grouped with related producing resource properties as a CGU with common geography and geological characteristics. Undeveloped lands are evaluated for indicators separately from hydrocarbon development and production assets and hydrocarbon probable reserves. Impairment is assessed by comparing the carrying amount of undeveloped lands to values determined by an independent land evaluator based on recent market transactions. Management also takes into account future plans for those properties, the remaining terms of the leases and any other factors that may be indicators of potential impairment. |
Financial Liabilities | (xiii) Financial Liabilities The Group measures financial liabilities at either amortized cost or FVTPL. Financial liabilities are measured at amortized cost, unless either it is held for trading and hence required to be measured at FVTPL or the group elects to measure the financial liability at FVTPL where permitted by IFRS 9. |
Leases | (xiv) Leases At the commencement date of a lease contract under which the Group is the lessee, the Group recognizes a right-of-use asset and a lease liability which is measured at the present value of the lease payments that are not paid at that date, discounted using the interest rate implicit in the lease (or if the rate cannot be readily determined, the Group company’s incremental borrowing rate). After the commencement date, the Group (a) measures the lease liability by (i) increasing the carrying amount to reflect interest on the lease liability; (ii) reducing the carrying amount to reflect the lease payments made; and (iii) remeasuring the carrying amount to reflect any reassessment or lease modifications or to reflect revised in-substance fixed lease payments; and (b) recognizes in profit or loss, unless the costs are included in the carrying amount of another asset, both (i) interest on the lease liability and (ii) variable lease payments not included in the measurement of the lease liability in the period in which the event or condition that triggers those payments occur. The Group has elected not to apply IFRS 16 to short-term leases and leases for which the underlying asset is of low value and, as such, recognizes the lease payments associated with those leases as an expense on a straight-line basis. The right-of-use assets are included in property, plant and equipment (see Note 2B (x)) and the lease liabilities are included in account payables and accrued expenses under current liabilities and/or other long-term liabilities. Note 2. Basis of Presentation and Summary of Significant Accounting Policies (continued) Amendments to IFRS 16 on COVID-19-related Rent Concessions In May 2020, the IASB issued amendments to IFRS 16 and provided a practical expedient that permits lessees (not lessors) to account for certain rent concessions in profit or loss as if they were not lease modifications. The practical expedient only applies to rent concessions occurring as a direct consequence of the COVID-19 pandemic and only if certain conditions are met. The amendments only apply to reduction in lease payments which affects only payments due on or before June 30, 2021. The amendments are effective for annual reporting periods beginning on or after June 1, 2020, with earlier application permitted. Management elected to apply the amendments to IFRS 16 in the year ended December 31, 2020. The Group has applied the practical expedient to all rent concessions that meet the criteria. When applying the practical expedient, the rent relief is treated as a variable rent expense in profit or loss against the lease liability to derecognize the part of the lease liability that has been forgiven or waived. See Note 14. |
Provision, Financial Guarantee Contracts and Contingencies | (xv) Provisions, Financial Guarantee Contracts and Contingencies Provisions are recognized when the Group has a present obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are measured at management’s best estimate of the expenditure required to settle the obligation at the reporting date. Where appropriate, the future cash flow estimates are adjusted to reflect risks specific to the liability. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recorded as accretion and included in finance costs on the consolidated statements of operations. A financial guarantee contract is initially recognized at fair value. If the guarantee is issued to an unrelated party on a commercial basis, the initial fair value is likely to equal the premium received. If no premium is received, the fair value must be determined using a method that quantifies the economic benefit of the guarantee to the holder. At the end of each subsequent reporting period, financial guarantees are measured at the higher of: (i) the amount of the loss allowance, and (ii) the amount initially recognized less cumulative amortization, where appropriate. Contingent liabilities are possible obligations whose existence will only be confirmed by future events not wholly within the control of the Group. Contingent liabilities, other than those assumed in connection with business combinations which are measured at fair value at the acquisition date, are not recognized in the consolidated financial statements but are disclosed unless the possibility of an outflow of economic resources is considered remote. Legal costs in connection with a loss contingency are recognized in profit or loss when incurred. The Group does not recognize a contingent or reimbursement asset unless it is virtually certain that the contingent or reimbursement asset will be received. |
Decommissioning Obligations | (xvi) Decommissioning Obligations The Group provides for decommissioning, restoration and similar liabilities (collectively, decommissioning obligations) on its resource properties, facilities, production platforms, pipelines and other facilities based on estimates established by current legislation and industry practices. The decommissioning obligation is initially measured at fair value and capitalized to interests in resource properties or property, plant and equipment as an asset retirement cost. The liability is estimated by discounting expected future cash flows required to settle the liability using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The estimated future asset retirement costs are adjusted for risks such as project, physical, regulatory and timing. The estimates are reviewed periodically. Changes in the provision as a result of changes in the estimated future costs or discount rates are added to or deducted from the asset retirement cost in the period of the change. The liability accretes for the effect of time value of money until it is settled. The capitalized asset retirement cost is amortized through depreciation, depletion and amortization over the estimated useful life of the related asset. Actual asset retirement expenditures are recorded against the obligation when incurred. Any difference between the accrued liability and the actual expenditures incurred is recorded as a gain or loss in the settlement period. |
Own Equity Instruments | (xvii) Own Equity Instruments The Group’s holdings of its own equity instruments, including common stock and preferred stock, are presented as “treasury stock” and deducted from shareholders’ equity at cost and in the determination of the number of equity shares outstanding. No gain or loss is recognized in profit or loss on the purchase, sale, re-issue or cancellation of the Group’s own equity instruments. |
Revenue Recognition | (xviii) Revenue Recognition The Group recognizes revenue, excluding interest and dividend income and other such income from financial instruments recognized in accordance with IFRS 9, upon transfer of promised goods or services to customers in amounts that reflect the consideration to which the Group expects to be entitled in exchange for those goods or services based on the following five step approach: Step 1: Identify the contracts with customers; Step 2: Identify the performance obligations in the contract; Step 3: Determine the transaction price; Step 4: Allocate the transaction price to the performance obligations in the contract; and Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation. The Group typically satisfies its performance obligations upon shipment of the goods, or upon delivery, as the services are rendered or upon completion of services depending on whether the performance obligations are satisfied over time or at a point in time. The Group primarily acts as principal in contracts with its customers. The Group does not have material obligations for returns, refunds and other similar obligations, nor warranties and related obligations. For performance obligations that the Group satisfies over time, the Group typically uses time-based measures of progress because the Group is providing a series of distinct services that are substantially the same and have the same pattern of transfer. For performance obligations that the Group satisfies at a point in time, the Group typically uses shipment or delivery of goods and/or services in evaluating when a customer obtains control of promised goods or services. A significant financing component exists and is accounted for if the timing of payments agreed to by the parties to the contract provides the customer or the Group with a significant benefit of financing the transfer of goods and services to the customer. As a practical expedient, the Group does not adjust the promised amount of consideration for the effects of a significant financing component if the Group expects, at contract inception, that the period between when the Group transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less. The incremental costs of obtaining contracts with customers and the costs incurred in fulfilling contracts with customers that are directly associated with the contract are recognized as an asset (hereinafter, “assets arising from contract costs”) if those costs are expected to be recoverable, which are included in other long-term assets in the consolidated statements of financial position. The incremental costs of obtaining contracts are those costs that the Group incurs to obtain a contract with a customer that they would not have incurred if the contract had not been obtained. As a practical expedient, the Group recognizes the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the entity otherwise would have recognized is one year or less. Assets arising from contract costs are amortized using the straight-line method over their estimated contract periods. The Group exercises judgments in determining the amount of the costs incurred to obtain or fulfil a contract with a customer, which includes, but is not limited to (a) the likelihood of obtaining the contract, (b) the estimate of the profitability of the contract, and (c) the credit risk of the customer. An impairment loss will be recognized in profit or loss to the extent that the carrying amount of the asset exceeds (a) the remaining amount of consideration that the entity expects to receive in exchange for the goods or services to which the asset relates, less (b) the costs that relate directly to providing those goods or services and that have not been recognized as expenses. Further details of the Group’s recognition policies on revenue from contracts with customers and other sources of revenue and income are as follows: Note 2. Basis of Presentation and Summary of Significant Accounting Policies (continued) (a) Royalty – Royalty revenue are based on iron ore sold and shipped by an operator and are measured at the fair value of the consideration received or receivable. The Group recognizes revenue from these sales when control over the iron ore transfers to the operator’s customers. Royalty revenue are recognized in an amount that reflects the consideration which the Group is entitled under the mineral sublease and for which collectability is reasonably assured. (b) Industrial and other goods and products – Industrial and other goods and products primarily include natural gas, power and electricity, food products and metals. Revenue from sale of industrial and other goods and products are recognized when products have been delivered, the amount of revenue can be reliably measured and collectability is reasonably assured. Customer credit worthiness is assessed prior to agreement signing, as well as throughout the contract duration. Generally, the Group’s sale transactions of industrial and other goods and products do not involve deliveries of multiple services and products and a financing component. They occur at different points in time and/or over different periods of time which is a significant judgment for the Group. (c) Rental income – Lease payments from properties letting under operating leases are recognized as rental income over the lease term on either a straight–line basis or another systematic basis that is more representative of the pattern in which benefit from the use of the underlying leased asset is diminished. Contingent rentals are recognized in the accounting period in which they are earned. (d) Property management – Income from provision of property and facilities management services is recognized when the services are rendered. (e) Property sales – Gains on sales of properties are recognized when the control over the ownership or physical possession of the property is transferred to the customers, which is the point in time when the Group satisfies its performance obligations under the contracts. (f) Financial services – Interest income from merchant banking business is accrued on a time basis using the effective interest method. Fee income is realized as earned unless it is an integral part of a financing in which case it is amortized over the period of the loan using the effective interest method. (g) Investment income – Dividend income from equity investments is recognized when the right to receive payment is established. Interest income from financial investments is recognized using the effective interest method. |
Costs of Sales and Services | (xix) Costs of Sales and Services Costs of sales and services comprise costs of sales and services of sales and services. Costs of sales and services include the costs of goods (royalty, goods and products and services, real estate for sale, medical instruments and supplies) sold. The costs of goods sold include both the direct cost of materials and indirect costs, freight charges, purchasing and receiving costs, inspection costs, distribution costs and a provision for warranty when applicable. Other comprises other expenses and other income relating to or arising from the Group’s goods and services, which include write-downs of inventories and real estate for sale, net loss on securities and investment property, credit losses on financial assets, change in fair value of investment property, commodity inventories and a loan payable measured at FVTPL. Other also includes gains or losses on dispositions of subsidiaries and non-currency derivative contracts. The reversal of write-downs of inventories and real estate for sale and credit losses reduces costs of sales and services. |
Employee Benefits | (xx) Employee Benefits Wages, salaries, bonuses, social security contributions, paid annual leave and sick leave are accrued in the period in which the associated services are rendered by employees of the Group. The employee benefits are included in costs of sales and services or selling, general and administrative expenses, as applicable. |
Share-Based Compensation | (xxi) Share-Based Compensation The cost of equity-settled transactions with employees is measured by reference to the fair value of the equity instruments on the date at which the equity instruments are granted and is recognized as an expense over the vesting period, which ends on the date on which the relevant employees become fully entitled to the award. Fair value is determined by using an appropriate valuation model. At each reporting date before vesting, the cumulative expense is calculated, representing the extent to which the vesting period has expired and management’s best estimate of the achievement or otherwise of non-market conditions and the number of equity instruments that will ultimately vest. The movement in cumulative expense since the previous reporting date is recognized in profit or loss, with a corresponding amount in equity. When the terms of an equity-settled award are modified or a new award is designated as replacing a cancelled or settled award, the cost based on the original award terms continues to be recognized over the original vesting period. In addition, an expense is recognized over the remainder of the new vesting period for the incremental fair value of any modification, based on the difference between the fair value of the original award and the fair value of the modified award, both as measured on the date of the modification. No reduction is recognized if this difference is negative. When an equity-settled award is cancelled other than by forfeiture when the vesting conditions are not satisfied, it is treated as if it had vested on the date of cancellation and any cost not yet recognized in profit or loss for the award is expensed immediately. Share-based compensation expenses are included in selling, general and administrative expenses. When stock options are exercised, the exercise price proceeds together with the amount initially recorded in contributed surplus are credited to capital stock and additional paid-in capital. |
Finance Costs | (xxii) Finance Costs Finance costs comprise interest expense on borrowings, accretion of the discount on provisions, decommissioning obligations and other liabilities and charges and fees relating to factoring transactions. Shares and debt issued are recorded at the amount of proceeds received, net of direct issue costs (transaction costs). The transaction costs attributable to debt issued are amortized over the debt term using the effective interest method. |
Income Taxes | (xxiii) Income Taxes Income tax expense (recovery) comprises current income tax expense (recovery) and deferred income tax expense (recovery) and includes all domestic and foreign taxes which are based on taxable profits. The current income tax provision is based on the taxable profits for the period. Taxable profit differs from income before income taxes as reported in the consolidated statements of operations because it excludes items of income or expense that are taxable or deductible in other periods and items that are never taxable or deductible. The Group’s liability for current income tax is calculated using tax rates that have been enacted or substantively enacted by the reporting date. Deferred income tax is provided, using the liability method, on all temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts in the consolidated statement of financial position. Deferred income tax liabilities are recognized for all taxable temporary differences: - except where the deferred income tax liability arises on goodwill that is not tax deductible or the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss. - in respect of taxable temporary differences associated with investments in subsidiaries and branches, except where the Group is able to control the timing of the reversal of the temporary differences and it is probable that the temporary differences will not reverse in the foreseeable future. Note 2. Basis of Presentation and Summary of Significant Accounting Policies (continued) Deferred income tax assets are recognized for all deductible temporary differences, carry-forward of unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and the carry-forward of unused tax credits and unused tax losses can be utilized: - except where the deferred income tax asset arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss. - in respect of deductible temporary differences associated with investments in subsidiaries and branches, deferred tax assets are recognized only to the extent that it is probable that the temporary differences will reverse in the foreseeable future. On the reporting date, management reviews the Group’s deferred income tax assets to determine whether it is probable that the benefits associated with these assets will be realized. The Group also reassesses unrecognized deferred income tax assets. The review and assessment involve evaluating both positive and negative evidence. The Group recognizes a previously unrecognized deferred income tax asset to the extent that it has become probable that future taxable profit will allow the deferred income tax asset to be recovered. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted at the reporting date. Tax relating to items recognized in other comprehensive income or equity is recognized in other comprehensive income or equity and not in profit or loss. Deferred income tax assets and liabilities are offset when there is a legally enforceable right to set off current income tax assets against current income tax liabilities, and when they relate to income tax levied by the same taxation authority and the Group intends to settle its current income tax assets and liabilities on a net basis. Withholding taxes (which include withholding taxes payable by a subsidiary on distributions to the Group) are treated as income taxes when they have the characteristics of an income tax. This is considered to be the case when they are imposed under government authority and the amount payable is calculated by reference to revenue derived. The Group includes interest charges and penalties on current income tax liabilities as a component of interest expense. |
Earnings Per Share | (xxiv) Earnings Per Share Basic earnings per share is determined by dividing net income attributable to ordinary equity holders of Scully by the weighted average number of common shares outstanding during the period, net of treasury stock. Diluted earnings per share is determined using the same method as basic earnings per share, except that the weighted average number of common shares outstanding includes the effect of dilutive potential ordinary shares. For the purpose of calculating diluted earnings per share, the Group assumes the exercise of its dilutive options with the assumed proceeds from these instruments regarded as having been received from the issue of common shares at the average market price of common shares during the period. The difference between the number of common shares issued and the number of common shares that would have been issued at the average market price of common shares during the period is treated as an issue of common shares for no consideration and added to the weighted average number of common shares outstanding. The amount of the dilution is the average market price of common shares during the period minus the issue price and the issue price includes the fair value of services to be supplied to the Group in the future under the share-based payment arrangement. Potential ordinary shares are treated as dilutive when, and only when, their conversion to ordinary shares would decrease earnings per share or increase loss per share from continuing operations. Note 2. Basis of Presentation and Summary of Significant Accounting Policies (continued) When share-based payments are granted during the period, the shares issuable are weighted to reflect the portion of the period during which the options are outstanding. The shares issuable are also weighted to reflect forfeitures occurring during the period. When stock options are exercised during the period, shares issuable are weighted to reflect the portion of the period prior to the exercise date and actual shares issued are included in the weighted average number of shares outstanding from the exercise date. The earnings per share information in prior years are retrospectively adjusted to reflect the impact of stock dividends. |
Critical Judgments in Applying Accounting Policies | C. Critical Judgments in Applying Accounting Policies In the process of applying the Group’s accounting policies, management makes various judgments, apart from those involving estimations under Note 2D below that can significantly affect the amounts it recognizes in the consolidated financial statements. The following are the critical judgments that management has made in the process of applying the Group’s accounting policies and that have the most significant effects on the amounts recognized in the consolidated financial statements: (i) Identification of Cash-generating Units The Group’s assets are aggregated into CGUs, for the purpose of assessing and calculating impairment of non-financial assets, based on their ability to generate largely independent cash flows. The determination of CGUs requires judgment in defining the smallest identifiable group of assets that generate cash inflows that are largely independent of the cash inflows from other assets or groups of assets. CGUs have been determined based on similar geological structure, shared infrastructure, geographical proximity, product type and similar exposure to market risks. In the event facts and circumstances surrounding factors used to determine the Group’s CGUs change, the Group will re-determine the groupings of CGUs. (ii) Impairment and Reversals of Impairment on Non-Financial Assets The carrying amounts of the Group’s non-financial assets, other than deferred tax assets, are reviewed at the end of each reporting period to determine whether there is an indication of impairment or reversal of previously recorded impairment. If such indication exists, the recoverable amount is estimated. Determining whether there are any indications of impairment or impairment reversals requires significant judgment of external factors, such as an extended change in prices or margins for iron ore, hydrocarbon commodities or refined products, a significant change in an asset’s market value, a significant revision of estimated volumes, revision of future development costs, a change in the entity’s market capitalization or significant changes in the technological, market, economic or legal environment that would have an impact on the Company’s CGUs. Given that the calculations for recoverable amounts require the use of estimates and assumptions, including forecasts of commodity prices, market supply and demand, product margins and in the case of the Group’s iron ore interest, power plant and hydrocarbon properties, expected production volumes, it is possible that the assumptions may change, which may impact the estimated life of the CGU and may require a material adjustment to the carrying values of non-financial assets. Impairment losses recognized in prior years are assessed at the end of each reporting period for indications that the impairment has decreased or no longer exists. An impairment loss is reversed only to the extent that the carrying amount of the asset or CGU does not exceed the carrying amount that would have been determined, net of depreciation, depletion and amortization, if no impairment loss had been recognized. See Notes 11 and 12. Note 2. Basis of Presentation and Summary of Significant Accounting Policies (continued) (iii) Valuation of Investment Property Investment properties are included in the consolidated statement of financial position at their market value, unless their fair value cannot be reliably determined at that time. The market value of investment properties is assessed annually by an independent qualified valuer, who is an authorized expert for the valuation of developed and undeveloped land in Germany, after taking into consideration the net income with inputs on realized basic rents, operating costs and damages and defects. The assumptions adopted in the property valuations are based on the market conditions existing at the end of the reporting period, with reference to current market sales prices and the appropriate capitalization rate. Changes in any of these inputs or incorrect assumptions related to any of these items could materially impact these valuations. (iv) Assets Held for Sale and Discontinued Operations The Group applies judgment to determine whether an asset (or disposal group) is available for immediate sale in its present condition and that its sale is highly probable and therefore should be classified as held for sale at the date of the statement of financial position. In order to assess whether it is highly probable that the sale can be completed within one year, or the extension period in certain circumstances, management reviews the business and economic factors, both macro and micro, which include the industry trends and capital markets, and the progress towards a sale transaction. It is also open to all forms of sales, including exchanges of non-current assets for other non-current assets when the exchange will have commercial substance in accordance with IAS 16, Property, Plant and Equipment In 2019, the Group disposed of its interests in two product lines in Europe which management considered not to be discontinued operations because (i) they did not form separate segments or CGUs, (ii) they did not have financial results which could be clearly identified from the rest of the Group, (iii) each of them was not a separate major geographical area, and (iv) the dispositions were not part of a single coordinated plan to dispose of them. Management, when exercising its judgments in terms of their respective contribution to the Group’s net loss, total assets and net assets, concluded that these disposed product lines were not separate major lines of business or geographical area of operations. Based on the Group’s consolidated financial statements as of June 30, 2019 (the latest publicly available financial results prior to their dispositions), the net income or loss of these disposed units represented 2% and 7%, of the combined reported loss of all entities that reported a loss and each of them represented 1% of consolidated total assets and less than 1% of consolidated net assets of the Group. The combined revenue (third parties only), loss before taxes, income tax expense and net loss, respectively, was $81,766, ($63), ($575) and ($638) during the year of 2019 to the dates of their dispositions, which were included in the Group’s continuing operations for the year ended December 31, 2019. The net gain on dispositions of these entities was $207. (v) Credit Losses and Impairment of Receivables Pursuant to IFRS 9, the Group applies credit risk assessment and valuation methods to its trade and other receivables under IFRS 9 which establishes a single forward-looking expected loss impairment model. The Group measures the loss allowance for a financial instrument at an amount equal to the lifetime expected credit losses if the credit risk on the financial instrument has increased significantly since initial recognition. The objective of the impairment requirements is to recognize lifetime expected credit losses for all financial instruments for which there have been significant increases in credit risk since initial recognition — whether assessed on an individual or collective basis — considering all reasonable and supportable information, including that which is forward-looking. At each reporting date, management assesses whether the credit risk on a financial instrument that is measured at amortized cost or at FVTOCI has increased significantly since initial recognition. When making the assessment, management uses the change in the risk of a default occurring over the expected life of the financial instrument instead of the change in the amount of expected credit losses. To make that assessment, management compares the risk of a default occurring on the financial instrument as at the reporting date with the risk of a default occurring on the financial instrument as at the date of initial recognition and considers reasonable and supportable information, that is available without undue cost or effort, that is indicative of significant increases in credit risk since initial recognition. Note 2. Basis of Presentation and Summary of Significant Accounting Policies (continued) Allowance for credit losses is maintained at an amount considered adequate to absorb the expected credit losses. Such allowance for credit losses reflects management’s best estimate of changes in the credit risk on the Group’s financial instruments and judgments about economic conditions. The assessment of allowance for credit losses is a complex process, particularly on a forward-looking basis; which involves a significant degree of judgment and a high level of estimation uncertainty. The input factors include the assessment of the credit risk of the Group’s financial instruments, legal rights and obligations under all the contracts and the expected future cash flows from the financial instruments, which include inventories, mortgages and other credit enhancement instruments. The major source of estimation uncertainty relates to the likelihood of the various scenarios under which different amounts are expected to be recovered through the security in place on the financial assets. The expected future cash flows are projected under different scenarios and weighted by probability, which involves the exercise of significant judgment. Estimates and judgments could change in the near-term and could result in a significant change to a recognized allowance. |
Major Sources of Estimation Uncertainty | D. Major Sources of Estimation Uncertainty The timely preparation of the consolidated financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. The major assumptions about the future and other major sources of estimation uncertainty at the end of the reporting period that have a significant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. These items require management’s most difficult, subjective or complex estimates. Actual results may differ materially from these estimates. (i) Interests in Resource Properties and Reserve Estimates The Group had interests in resource properties mainly comprised of an interest in the Scully iron ore mine, and to a lesser extent, hydrocarbon properties, with an aggregate carrying amount of $254,706 as at December 31, 2021. Generally, estimation of reported recoverable quantities of proved and probable reserves of resource properties include judgmental assumptions regarding production profile, prices of products produced, exchange rates, remediation costs, timing and amount of future development costs and production, transportation and marketing costs for future cash flows. It also requires interpretation of geological and geophysical models and anticipated recoveries. The economical, geological and technical factors used to estimate reserves may change from period to period. Changes in reported reserves can impact the carrying amounts of the Group’s interests in resource properties and/or related property, plant and equipment, the recognition of impairment losses and reversal of impairment losses, the calculation of depletion and depreciation, the provision for decommissioning obligations and the recognition of deferred income tax assets or liabilities due to changes in expected future cash flows. During the year ended December 31, 2021, the Group did not recognize any impairment in respect of its interest in resource properties. The Group’s iron ore reserves are estimates of the amount of product that can be economically and legally extracted from the Group’s mining properties. Reserve and resource estimates are an integral component in the determination of the commercial viability of the Group’s interest in the iron ore mine, amortization calculations and impairment analyses. In calculating reserves and resources, estimates and assumptions are required about a range of geological, technical and economic factors, including quantities, grades, production techniques, production decline rates, recovery rates, production costs, commodity demand, commodity prices and exchange rates. In addition, future changes in regulatory environments, including government levies or changes in the Group’s rights to exploit the resource imposed over the producing life of the reserves and resources may also significantly impact estimates. Note 2. Basis of Presentation and Summary of Significant Accounting Policies (continued) The Group’s hydrocarbon reserves represent the estimated quantities of petroleum, natural gas and natural gas liquids which geological, geophysical and engineering data demonstrate with a specified degree of certainty to be economically recoverable in future years from known reservoirs and which are considered commercially producible. Such reserves may be considered commercially producible if management has the intention of developing and producing them and such intention is based upon: (a) a reasonable assessment of the future economics of such production; (b) a reasonable expectation that there is a market for all or substantially all the expected hydrocarbon production; and (c) evidence that the necessary production, transmission and transportation facilities are available or can be made available. Reserves may only be considered proven and probable if producibility is supported by either production or conclusive formation tests. The recoverable quantities of reserves and estimated cash flows from the Group’s hydrocarbon interests are independently evaluated by reserve engineers at least annually. Included in interests in resource properties as at December 31, 2021, were exploration and evaluation assets with an aggregate carrying amount of $17,007. Exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that the carrying amount of an exploration and evaluation asset may exceed its recoverable amount and upon reclassification to hydrocarbon development and production assets. If such indicators exist, impairment, if any, is determined by comparing the carrying amounts to the recoverable amounts. The measurement of the recoverable amount involves a number of assumptions, including the timing, likelihood and amount of commercial production, further resource assessment plans and future revenue and costs expected from the asset, if any. See Note 12. (ii) Impairment of Other Non-Financial Assets The Group had property, plant and equipment aggregating $49,065 as at December 31, 2021, consisting mainly of a power plant and a natural gas processing facility. Impairment of the Group’s non-financial assets is evaluated at the CGU level. In testing for impairment, the recoverable amounts of the Company’s CGUs are determined as the higher of their values in use and fair values less costs of disposal. In the absence of quoted market prices, the recoverable amount is based on estimates of future production rates, future product selling prices and costs, discount rates and other relevant assumptions. Increases in future costs and/or decreases in estimates of future production rates and product selling prices may result in a write-down of the Group’s property, plant and equipment. See Note 11. (iii) Taxation The Group is subject to tax in a number of jurisdictions and judgment is required in determining the worldwide provision for income taxes. Deferred income taxes are recognized for temporary differences using the liability method, with deferred income tax liabilities generally being provided for in full (except for taxable temporary differences associated with investments in subsidiaries and branches where the Group is able to control the timing of the reversal of the temporary differences and it is probable that the temporary differences will not reverse in the foreseeable future) and deferred income tax assets being recognized to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilized. The Group recognized deferred income tax assets of $9,619 as at December 31, 2021. In assessing the realizability of deferred income tax assets, management considers whether it is probable that some portion or all of the deferred income tax assets will be realized. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income in Malta and Canada during the periods in which temporary differences become deductible or before tax loss and tax credit carry-forwards expire. Management considers the future reversals of existing taxable temporary differences, projected future taxable income, taxable income in prior years and tax planning strategies in making this assessment. Unrecognized deferred income tax assets are reassessed at the end of each reporting period. The Group does not recognize the full deferred tax liability on taxable temporary differences associated with investments in subsidiaries and branches where the Group is able to control the timing of the reversal of the temporary differences and it is probable that the temporary differences will not reverse in the foreseeable future. The Group may change its investment decision in its normal course of business, thus resulting in additional income tax liabilities. Note 2. Basis of Presentation and Summary of Significant Accounting Policies (continued) The operations and organization structures of the Group are complex, and related tax interpretations, regulations and legislation are continually changing. The Group companies’ income tax filings are subject to audit by taxation authorities in numerous jurisdictions. There are audits in progress and items under review, some of which may increase the Group’s income tax liabilities. In addition, the companies have filed appeals and have disputed certain issues. While the results of these items cannot be ascertained at this time, the Group believes that the Group has an adequate provision for income taxes based on available information. (iv) Contingencies Pursuant to IAS 37, Provisions, Contingent Liabilities and Contingent Assets, (v) Pandemic COVID-19 and Going Concern The COVID-19 pandemic has led the world into a new era of uncertainties. The pandemic is dynamic and expanding and its ultimate scope, duration and effects are currently uncertain. The impact of the pandemic and the global response thereto has, among other things, significantly disrupted global economic activity, negatively impacted gross domestic product and caused significant volatility in financial markets; although a number of developed vaccines have been proven to be safe and effective in protecting against COVID-19, which provides optimism that the pandemic’s impact may start to wane in 2022, though there was another wave of outbreak of variants of COVID-19 in late 2021 and early 2022. While various countries have implemented stimulus packages and other fiscal measures to attempt to reduce the impact of the pandemic on their economies, the impact of the pandemic on global economic activity and markets both in the short and longer term is uncertain at this time. The magnitude and duration of the disruption and resulting decline in business activity resulting from the COVID-19 pandemic is currently uncertain. While the Group expects that there will likely be some negative impact on its results of operations, cash flows and financial position from the pandemic beyond the near-term, the extent to which the COVID-19 pandemic impacts the Group’s business, operations and financial results will depend on numerous evolving factors that management may not be able to accurately predict, including: the duration and scope of the pandemic; governmental, business and individuals’ actions that have been and continue to be taken in response to the pandemic; the impact of the pandemic on economic activity and actions taken in response thereto; the effect on the Group’s customers, including the borrowers and customers of the Group’s banking subsidiary; its impacts on suppliers; and the impact of the pandemic on counterparties and their ability to carry out their obligations to the Group. The Group’s results of operations, cash flows and financial position will likely be adversely affected by the pandemic beyond near-term. However, management does not believe the pandemic will have significant impact on the going concern of the Group in the foreseeable future, which is considered to be 12 months from the date of approval of these consolidated financial statements, as the Group currently has sufficient cash, good working capital position and steady cash inflows from operations. Management has performed stress tests on their forecasts with various assumptions and the results showed that the Group would be able to withstand any significant impact on operations within the aforesaid timeframe. Given the dynamic nature of these circumstances and the worldwide nature of the Company’s business and operations, the duration of any business disruption and the related financial impact due to the COVID-19 pandemic cannot be reasonably estimated at this time but could materially affect the Group’s business results of operations and financial condition. Ultimately, the severity of the impact of the pandemic on the Group’s business and going concern basis will depend on a number of factors, including, the duration and severity of the pandemic and the impact and new developments concerning the global severity of, and actions to be taken to contain the outbreak. Note 2. Basis of Presentation and Summary of Significant Accounting Policies (continued) Management took into consideration all of these various factors and risks when concluding on the Company’s ability to continue as a going concern and the appropriateness of this presentation when preparing these consolidated financial statements. |
Future Accounting Changes | E. Future Accounting Changes In January 2020, the IASB issued the final amendments in Classification of Liabilities as Current or Non-Current (Amendments to IAS 1) Classification of Liabilities as Current or Non-current – Deferral of Effective Date (Amendment to IAS 1) the January 2020 Classification of Liabilities as Current or Non-Current (Amendments to IAS 1) In May 2020, the IASB issued amendments to IAS 37, Provisions, Contingent Liabilities and Contingent Assets In May 2020, the IASB issued further amendments to IFRS 3, Business Combinations 2018 Conceptual Framework the Conceptual Framework, Levies In May 2020, the IASB issued Property, Plant and Equipment-Proceeds before Intended Use In May 2020, the IASB issued Annual Improvements to IFRS Standards 2018-2020 Note 2. Basis of Presentation and Summary of Significant Accounting Policies (continued) In February 2021, the IASB issued narrow-scope amendments to IAS 1, Presentation of Financial Statements Making Materiality Judgements In May 2021, the IASB issued targeted amendments to IAS 12, Income Taxes |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Basis of Presentation and Summary of Significant Accounting Policies | |
Schedule of sets out exchange rates for the translation of the Euro and U.S. dollar | EUR US$ Closing rate at December 31, 2021 1.4391 1.2678 Average rate for the year 2021 1.4828 1.2535 Closing rate at December 31, 2020 1.5608 1.2732 Average rate for the year 2020 1.5298 1.3415 Closing rate at December 31, 2019 1.4583 1.2988 Average rate for the year 2019 1.4856 1.3269 |
Schedule of carrying amount of property, plant and equipment on adoption of IFRS 16 | Carrying amount of property, plant and equipment as at December 31, 2018 $ 58,325 Adjustment for the lease liabilities under IFRS 16 on the date of initial application 2,911 Carrying amount of property, plant and equipment recognized on the initial adoption of IFRS 16 as at January 1, 2019 $ 61,236 |
Schedule of estimated useful lives and methods of property, plant and equipment | Lives Method Processing plant and equipment 5 to 20 years straight-line Refinery and power plants 20 to 30 years straight-line Office equipment and other 3 to 10 years straight-line Office premises 2 to 10 years straight-line |
Disclosure on the Group's Obj_2
Disclosure on the Group's Objectives, Policies and Processes for Managing Its Capital Structure (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure on the Group's Objectives, Policies and Processes for Managing Its Capital Structure | |
Schedule of debt or long term debt to adjusted capital or equity ratio | As at December 31: 2021 2020 Total debt $ 35,227 $ 38,053 Less: cash (54,873) (63,552) Net debt Not applicable Not applicable Shareholders’ equity 365,600 361,544 Net debt-to-adjusted capital ratio Not applicable Not applicable As at December 31: 2021 2020 Long-term debt $ 35,227 $ 38,053 Shareholders’ equity 365,600 361,544 Long-term debt-to-equity ratio 0.10 0.11 |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Segment Information | |
Schedule of segment operating | Note 5. Business Segment Information (continued) Segment Operating Results Year ended December 31, 2021 Merchant Royalty Industrial Banking All Other Total Revenue from external customers $ 40,335 $ 23,428 $ 6,527 $ 1,001 $ 71,291 Intersegment sale — 3,385 6,663 4,371 14,419 Interest expense 2 202 1,715 16 1,935 Depreciation, depletion and amortization 4,911 5,754 357 1 11,023 Income (loss) before income taxes 26,892 (4,739) 736 (5,342) 17,547 Year ended December 31, 2020 Merchant Royalty Industrial Banking All Other Total Revenue from external customers $ 31,360 $ 17,666 $ 10,406 $ — $ 59,432 Intersegment sale — 62 2,927 737 3,726 Interest expense — 31 1,834 16 1,881 Depreciation, depletion and amortization 5,225 5,833 410 2 11,470 Income (loss) before income taxes 25,293 (1,229) 832 (13,717) 11,179 Year ended December 31, 2019 Merchant Royalty Industrial Banking All Other Total Revenue from external customers $ 5,496 $ 100,184 $ 7,565 $ 22 $ 113,267 Intersegment sale — 6 3,455 948 4,409 Interest expense — 323 601 26 950 Depreciation, depletion and amortization 1,628 6,340 261 58 8,287 Income (loss) before income taxes 4,419 (15,840) 4,800 (10,163) (16,784) As at December 31, 2021 Merchant Royalty Industrial Banking All Other Total Segment assets $ 216,900 $ 148,426 $ 96,934 $ 47,706 $ 509,966 As at December 31, 2020 Merchant Royalty Industrial Banking All Other Total Segment assets $ 226,645 $ 153,240 $ 107,440 $ 21,800 $ 509,125 As at December 31, 2021 Merchant Royalty Industrial Banking All Other Total Segment liabilities $ 49,566 $ 44,703 $ 42,480 $ 683 $ 137,432 As at December 31, 2020 Merchant Royalty Industrial Banking All Other Total Segment liabilities $ 53,519 $ 36,437 $ 49,645 $ 800 $ 140,401 |
Schedule of cash flow by operating segments | Year ended December 31, 2021 Merchant Royalty Industrial Banking All Other Total Cash provided by (used in) operating activities $ 27,400 $ 1,836 $ 260 $ (36,133) $ (6,637) Cash used in investing activities — (1) (970) — (971) Cash used in financing activities — (208) (216) — (424) Exchange rate effect on cash (2) 476 (3,389) 2,268 (647) Change in cash $ 27,398 $ 2,103 $ (4,315) $ (33,865) $ (8,679) Year ended December 31, 2021 Merchant Royalty Industrial Banking All Other Total Cash provided by (used in) operating activities $ 11,394 $ 2,298 $ (3,620) $ (31,343) $ (21,271) Cash (used in) provided by investing activities — (111) 4,185 (655) 3,419 Cash provided by (used in) financing activities 80 (284) (197) (97) (498) Exchange rate effect on cash (35) 1,461 4,055 (1,853) 3,628 Change in cash $ 11,439 $ 3,364 $ 4,423 $ (33,948) $ (14,722) Year ended December 31, 2020 Merchant Royalty Industrial Banking All Other Total Cash (used in) provided by operating activities $ (98) $ 1,678 $ (2,685) $ (8,702) $ (9,807) Cash used in investing activities — (7,262) (1,174) (1,766) (10,202) Cash (used in) provided by financing activities — (532) 35,133 191 34,792 Exchange rate effect on cash — (2,710) (1,771) 212 (4,269) Change in cash $ (98) $ (8,826) $ 29,503 $ (10,065) $ 10,514 |
Schedule of geographic information | Years ended December 31: 2021 2020 2019 Canada $ 56,609 $ 39,493 $ 13,730 Africa 3,971 3,358 4,114 Americas 5,263 8,877 5,880 Asia 286 604 1,909 Europe 5,162 7,100 87,634 $ 71,291 $ 59,432 $ 113,267 As at December 31: 2021 2020 Canada $ 276,081 $ 284,151 Americas 5 6 Africa 25,835 27,641 Asia 1 5 Europe 49,146 52,297 $ 351,068 $ 364,100 |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Securities | |
Schedule of securities | As at December 31: 2021 2020 Short-term securities Equity securities at FVTPL, publicly traded $ 4,939 $ 2,509 Investment funds at FVTPL, unlisted 2,761 4,096 Debt securities at FVTPL, unlisted 770 873 Debt securities at FVTOCI, publicly traded 10,786 11,019 $ 19,256 $ 18,497 Long-term securities Equity securities in an affiliate at FVTPL, unlisted $ 3,625 $ 3,721 |
Trade Receivables (Tables)
Trade Receivables (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Trade Receivables | |
Schedule of trade receivable | As at December 31: 2021 2020 Trade receivables, gross amount $ 4,300 $ 4,803 Less: Allowance for expected credit losses (136) (48) Trade receivables, net amount $ 4,164 $ 4,755 |
Schedule of movement in the loss allowance | Equal to lifetime expected credit Losses Financial assets that are credit-impaired at year-end Loss allowance: as at January 1, 2020 $ 46 Additions for the year 2 Loss allowance: as at December 31, 2020 48 Additions for the year 124 Charge-off for the year (32) Exchange effect (4) Loss allowance: as at December 31, 2021 $ 136 |
Other Receivables (Tables)
Other Receivables (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Receivables | |
Schedule of other current receivables | As at December 31: 2021 2020 Royalty receivables $ 5,837 $ 10,108 Interest receivables 364 185 Contract assets under contracts with customers 575 106 Loans and current accounts* (net of allowance of $nil as of both December 31, 2021 and 2020, respectively) 47,745 21,620 Indemnification asset* 6,756 6,756 Other 3,169 743 $ 64,446 $ 39,518 * The Group had various amounts owing from an affiliate controlled by the Chairman of the Company (see Note 25). |
Schedule of movement of contract assets under contracts with customers | 2021 2020 Balance, beginning of the year $ 106 $ — Reclassification to revenues (106) — A change in the time frame for a right to consideration to become unconditional 575 106 Balance, end of the year $ 575 $ 106 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventories | |
Schedule of inventories | As at December 31: 2021 2020 Raw materials $ 991 $ 1,358 Work-in-progress 109 55 $ 1,100 $ 1,413 |
Investment Property (Tables)
Investment Property (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investment Property | |
Schedule of Changes in Investment Property | Changes in investment property included in non-current assets: 2021 2020 Balance, beginning of year $ 36,908 $ 38,205 Change in fair value during the year 407 760 Disposals (7) (4,567) Currency translation adjustments (2,878) 2,510 Balance, end of year $ 34,430 $ 36,908 |
Schedule of rental Income investment property | Years ended December 31: 2021 2020 2019 Rental income $ 1,381 $ 1,376 $ 1,652 Direct operating expenses (including repairs and maintenance) arising from investment property during the year 709 216 266 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment | |
Schedule of changes in property, plant and equipment | The following changes in property, plant and equipment were recorded during the year ended December 31, 2021: Currency Opening translation Ending Costs balance Additions Disposals adjustments balance Refinery and power plants $ 65,913 $ — $ — $ (171) $ 65,742 Processing plant and equipment 3,399 — — 2 3,401 Office equipment 1,036 988 (118) (126) 1,780 Right-of-use assets* 1,792 84 (263) (90) 1,523 $ 72,140 $ 1,072 $ (381) $ (385) $ 72,446 Currency Opening translation Ending Accumulated depreciation balance Additions Disposals adjustments balance Refinery and power plants $ 17,286 $ 2,586 $ — $ (33) $ 19,839 Processing plant and equipment 1,771 385 — 2 2,158 Office equipment 517 129 (31) (62) 553 Right-of-use assets* 683 436 (263) (25) 831 20,257 $ 3,536 $ (294) $ (118) 23,381 Net book value $ 51,883 $ 49,065 * Primarily consisting of office premises. The following changes in property, plant and equipment were recorded during the year ended December 31, 2020: Currency Opening translation Ending Costs balance Additions Disposals adjustments balance Refinery and power plants $ 66,701 $ 25 $ — $ (813) $ 65,913 Processing plant and equipment 3,307 88 — 4 3,399 Office equipment 920 116 (69) 69 1,036 Right-of-use assets* 1,554 368 (210) 80 1,792 $ 72,482 $ 597 $ (279) $ (660) $ 72,140 Currency Opening translation Ending Accumulated depreciation balance Additions Disposals adjustments balance Refinery and power plants $ 14,883 $ 2,716 $ — $ (313) $ 17,286 Processing plant and equipment 1,454 314 — 3 1,771 Office equipment 366 157 (37) 31 517 Right-of-use assets* 366 514 (210) 13 683 17,069 $ 3,701 $ (247) $ (266) 20,257 Net book value $ 55,413 $ 51,883 * Primarily consisting of office premises. |
Interests in Resource Propert_2
Interests in Resource Properties (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Interests in Resource Properties | |
Schedule of components of interests in resource properties | 2021 2020 Iron ore royalty interest $ 206,439 $ 211,350 Hydrocarbon development and production assets 31,260 32,998 Exploration and evaluation assets – hydrocarbon probable reserves 12,367 12,367 Exploration and evaluation assets – hydrocarbon undeveloped lands 4,640 4,640 $ 254,706 $ 261,355 |
Schedule of movements in interest in resource properties | The movements in the iron ore royalty interest and hydrocarbon development and production assets included in non-current assets during the year ended December 31, 2021 were as follows: Opening Decommissioning Ending Costs balance obligations balance Iron ore royalty interest $ 218,203 $ — $ 218,203 Hydrocarbon development and production assets 45,754 838 46,592 $ 263,957 $ 838 $ 264,795 Opening Ending Accumulated depreciation balance Additions balance Iron ore royalty interest $ 6,853 $ 4,911 $ 11,764 Hydrocarbon development and production assets 12,756 2,576 15,332 19,609 $ 7,487 27,096 Net book value $ 244,348 $ 237,699 Note 12. Interests in Resource Properties (continued) The movements in the iron ore royalty interest and hydrocarbon development and production assets included in non-current assets during the year ended December 31, 2020 were as follows: Opening Decommissioning Ending Costs balance obligations balance Iron ore royalty interest $ 218,203 $ — $ 218,203 Hydrocarbon development and production assets 46,700 (946) 45,754 $ 264,903 $ (946) $ 263,957 Opening Ending Accumulated depreciation balance Additions balance Iron ore royalty interest $ 1,628 $ 5,225 $ 6,853 Hydrocarbon development and production assets 10,212 2,544 12,756 11,840 $ 7,769 19,609 Net book value $ 253,063 $ 244,348 |
Schedule of movements in exploration and evaluation assets | 2021 2020 Probable Undeveloped Probable Undeveloped reserves lands reserves lands Balance, beginning of year $ 12,367 $ 4,640 $ 12,367 $ 4,640 Additions — — — — Disposal — — — — Balance, end of year $ 12,367 $ 4,640 $ 12,367 $ 4,640 |
Deferred Income Tax Assets an_2
Deferred Income Tax Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Income Tax Assets and Liabilities | |
Schedule of of temporary differences of deferred income tax assets and liabilities | As at December 31: 2021 2020 Non-capital tax loss carry-forwards $ 18,692 $ 24,677 Interests in resource properties (59,864) (62,418) Other assets (5,655) (7,251) Other liabilities (11,015) (10,267) $ (57,842) $ (55,259) Presented on the consolidated statements of financial position as follows: Deferred income tax assets $ 9,619 $ 10,856 Deferred income tax liabilities (67,461) (66,115) Net $ (57,842) $ (55,259) |
Schedule of estimated accumulated non capital losses | Amount for which no deferred income tax asset Country / Region Gross amount is recognized Expiration dates Canada $ 4,628 $ 15 2037 ‑ 2041 U.S.A. 84 — Indefinite Germany 423 — Indefinite Malta 92,417 63,628 Indefinite Africa 26,310 — Indefinite |
Account Payables and Accrued _2
Account Payables and Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Account Payables and Accrued Expenses | |
Schedule of account payables and accrued expenses | As at December 31: 2021 2020 Trade and account payables $ 6,579 $ 9,923 Interest payables 482 521 Value-added, goods and services and other taxes (other than income taxes) 1,550 1,194 Compensation 272 289 Contract liabilities under contracts with customers 1,864 2,767 Lease liabilities 291 384 Provision for a financial loss 283 575 Due to an affiliate (see Note 25) 25 27 $ 11,346 $ 15,680 |
Schedule of movement of contract liabilities under contracts with customers | 2021 2020 Balance, beginning of the year $ 2,767 $ 4,637 Considerations received 614 2,329 Reclassification to profit or loss upon satisfaction of performance obligations (1,517) (1,715) Write-off — (2,600) Other adjustments — 116 Balance, end of the year $ 1,864 $ 2,767 |
Schedule of contract liabilities expects to recognize as revenue | 2021 2020 Year 1 after the year-end (included in current liabilities) $ 1,864 $ 2,767 $ 1,864 $ 2,767 |
Schedule of future lease payments included in the measurement and principal amounts of the lease liabilities | Years ending December 31: Principal Interest Total 2022 $ 291 $ 23 $ 314 2023 233 13 246 2024 243 3 246 $ 767 $ 39 $ 806 Current liabilities $ 291 Non-current liabilities 476 $ 767 |
Schedule of Lease liabilities | 2021 2020 2019 Interest expense $ 42 $ 59 $ 71 Expense relating to short-term leases with payments directly charged to profit or loss 358 533 881 Expense relating to leases of low-value assets with payments directly charged to profit or loss 115 — — Expense relating to variable lease payments not included in the measurement of lease liabilities — — — Total cash outflows for leases 939 1,043 1,824 Gain on COVID-19-related rent concessions — (6) — Depreciation charge for right-of-use assets (see Note 11) 436 514 738 Carrying amount of right-of-use assets at the end of the reporting period (see Note 11) 692 1,109 1,188 |
Bonds Payable (Tables)
Bonds Payable (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Bonds Payable | |
Schedule of contractual maturities of bond payables | Years ending December 31: Principal Interest Total 2022 $ — $ 1,439 $ 1,439 2023 — 1,439 1,439 2024 — 1,439 1,439 2025 — 1,439 1,439 2026 35,978 1,439 37,417 $ 35,978 $ 7,195 $ 43,173 |
Decommissioning Obligations (Ta
Decommissioning Obligations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Decommissioning Obligations | |
Schedule of decommissioning obligations | 2021 2020 Decommissioning obligations, beginning of year $ 14,072 $ 15,018 Changes in estimates 838 (946) Accretion 186 — Decommissioning obligations, end of year $ 15,096 $ 14,072 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Shareholders' Equity | |
Schedule of movements in capital stock | Number Capital Stock Additional Total of Shares at Par Value Paid-in Capital Capital Stock Balance, January 1 and December 31, 2020 12,620,448 $ 16 $ 312,471 $ 312,487 Stock dividends* 2,236,133 3 (3) — Balance, December 31, 2021 14,856,581 $ 19 $ 312,468 $ 312,487 * 9% stock dividends were distributed on May 31, 2021 to shareholders of record as at May 14, 2021 and 8% stock dividends were distributed on November 30, 2021 to shareholders of record as at November 15, 2021. No fractional shares were issued by the Company in connection with such stock dividends. |
Schedule of treasury stock | As at December 31: 2021 2020 Total number of common shares held as treasury stock 77,279 * 65,647 Total carrying amount of treasury stock $ 2,643 $ 2,643 * 11,632 common shares were received as stock dividends during the year ended December 31, 2021. |
Consolidated Statements of Op_3
Consolidated Statements of Operations Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Consolidated Statements of Operations Information | |
Schedule of gross revenue | Years ended December 31: 2021 2020 2019 Royalty, goods and products and services $ 60,201 $ 48,441 $ 101,013 Interest 405 531 1,057 Dividends 244 — — Gain on securities, net — 758 931 Other, including medical and real estate sectors 10,441 9,702 10,266 Revenue $ 71,291 $ 59,432 $ 113,267 |
Schedule of group's costs of sales and services comprised | Years Ended December 31: 2021 2020 2019 Royalty, goods and products and services $ 22,933 $ 22,102 $ 95,189 Market value increase on commodity inventories — — (160) (Reversal of) write-down of inventories (19) 469 1,822 Gain on derivative contracts, net (1,376) — (122) Fair value gain on investment property, net of write-down of real estate for sale (407) (757) (3,122) Loss (gain) on dispositions of subsidiaries, net — 546 (2,243) Gains on settlements and derecognition of liabilities (390) (2,600) (1,168) Change in fair value of loan payable measured at FVTPL 1,616 549 979 Losses on securities, net 2,320 — — Other, including medical and real estate sectors 6,241 6,561 5,386 Total costs of sales and services $ 30,918 $ 26,870 $ 96,561 |
Schedule of costs of sales and services | Years ended December 31: 2021 2020 2019 Inventories as costs of goods sold (including depreciation expenses allocated to costs of goods sold) $ 3,488 $ 5,041 $ 72,414 |
Schedule of Group's credit lossees | Years ended December 31: 2021 2020 2019 Credit losses on loans and receivables and guarantees, net of reversal $ 88 $ (3,108) $ 13,398 |
Schedule of Gain on Disposition of subsidiaries | Years Ended December 31: 2021 2020 2019 Net assets (liabilities) in excess of considerations received $ — $ 331 $ (485) Reclassification adjustment for the exchange differences upon dispositions of subsidiaries — 215 (1,758) Loss (gain) on dispositions of subsidiaries, net (see Note 28) $ — $ 546 $ (2,243) |
Schedule of selling, general and administrative expenses | Years ended December 31: 2021 2020 2019 Compensation (wages and salaries) $ 4,551 $ 4,083 $ 6,762 Legal and professional 6,395 6,794 5,050 Accounting 1,238 1,294 1,965 Consulting and fees 3,423 2,836 2,365 Depreciation and amortization 481 557 502 Office 948 708 874 Reimbursement of expenses (net of recovery) 1,018 257 749 Other 3,090 3,372 4,306 $ 21,144 $ 19,901 $ 22,573 |
Schedule of nature of expenses incurred in continuing operations | Years Ended December 31: 2021 2020 2019 Depreciation, depletion and amortization $ 11,023 $ 11,470 $ 8,287 Employee benefits expenses* 6,922 7,253 13,727 * Employee benefits expenses do not include the directors’ fees of the Company. For directors’ fees, see Note 25. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-Based Compensation | |
Schedule of changes in stock options granted | 2017 Plan Weighted average exercise Number price of per share options (US$) Outstanding as at January 1, 2019 450,000 8.76 Forfeited (4,000) 8.76 Exercised (20,000) 8.76 Outstanding as at December 31, 2019 and 2020 426,000 8.76 Forfeited (32,500) 8.76 Granted 1,307,000 13.15 Adjustments for stock dividends issued in 2021 301,322 Not applicable Outstanding as at December 31, 2021 2,001,822 10.31 As at December 31, 2021: Options exercisable 2,001,822 10.31 Options available for granting in future periods 213,659 |
Schedule of information about stock options outstanding and exercisable | Options Outstanding and Exercisable Weighted average remaining Exercise Price per Share (US$)* Number contractual life (in years) $7.44 463,226 5.92 $11.17 1,538,596 9.33 Total 2,001,822 8.54 *The exercise price per share has been adjusted to reflect the effects of the stock dividends distributed in the year ended December 31, 2021. See Note 17. |
Schedule of share-based compensation expenses recognized | Years ended December 31: 2021 2020 2019 Share-based compensation expenses arising from stock options granted by the Company $ 2,497 $ — $ — |
Schedule of black-scholes-merton formula | 2021 Number of options granted (on a post-stock dividend basis) 1,538,596 Vesting requirements Immediately Contractual life 9.33 years Method of settlement In equity Exercise price per share US$11.17 Market price per share on grant date US$10.01 Expected volatility 39.24% Expected option life 9.33 years Expected dividends 8.00% Risk-free interest rate 1.48% Fair value of option granted (per option) $1.62 (US$1.27) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Taxes | |
Schedule of income tax expense | Years ended December 31: 2021 2020 2019 Current taxes $ (215) $ (95) $ (384) Deferred taxes (2,074) (4,798) (98) Resource property expense (7,887) (6,074) (1,137) $ (10,176) $ (10,967) $ (1,619) |
Schedule of reconciliation of (loss) income before income taxes | Years ended December 31: 2021 2020 2019 Income (loss) before income taxes $ 17,547 $ 11,179 $ (16,784) Computed (expense) recovery of income taxes $ (5,982) $ (6,521) $ 4,743 Decrease (increase) in income taxes resulting from: Effect of change in income tax rate — (13) 891 Other non-taxable income 160 (1) 24 Revisions to prior years 351 (21) 88 Capital gains and losses on dispositions, net 83 35 (7,663) Resource property revenue taxes (5,758) (4,433) (830) Unrecognized losses in current year (199) (1) (228) Previously unrecognized deferred income tax assets, net 302 113 1,229 Permanent differences (262) (92) (178) Other non-taxable income 1,156 — — Other, net (27) (33) 305 Income tax expense $ (10,176) $ (10,967) $ (1,619) |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings (Loss) Per Share | |
Schedule of Earnings (Loss) Per Share | 2021 2020 2019 Basic income (loss) attributable to holders of common shares $ 7,564 $ 369 $ (18,553) Effect of dilutive securities: — — — Diluted income (loss) $ 7,564 $ 369 $ (18,553) Number of Shares 2021 2020* 2019* Weighted average number of common shares outstanding - basic 14,779,302 14,779,302 14,765,938 Effect of dilutive securities: Options 129,010 — — Weighted average number of common shares outstanding - diluted 14,908,312 14,779,302 14,765,938 * The numbers have been restated for the stock dividends issued in 2021. See Note 17. 2021 2020 2019 Earnings (loss) per share — basic and diluted $ 0.51 $ 0.03 $ (1.26) |
Consolidated Statements of Ca_3
Consolidated Statements of Cash Flows - Supplemental Disclosure (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Consolidated Statements of Cash Flows - Supplemental Disclosure | |
Schedule of reconciliation of liabilities arising from financing activities | Years ended December 31: 2021 2020 2019 Bonds payable, opening balance $ 38,053 $ 35,418 $ — Cash flows — — 35,433 Non-cash changes: Accretion 145 143 533 Cumulative translation adjustments (2,971) 2,492 (548) Bonds payable, ending balance (see Note 15) $ 35,227 $ 38,053 $ 35,418 Years ended December 31: 2021 2020 2019 Lease liabilities, opening balance $ 1,175 $ 1,196 $ — Cash flows (466) (510) (943) Non-cash changes: Initial adoption of IFRS 16 — — 2,911 Additions 84 368 1,583 Dispositions of subsidiaries — — (487) Accretion 42 59 71 COVID-19 related rent concessions — (6) — Termination — — (1,809) Cumulative translation adjustments (68) 68 (130) Lease liabilities, ending balance (see Note 14) $ 767 $ 1,175 $ 1,196 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions | |
Schedule of transactions with related party | Years ended December 31: 2021 2020 2019 Fee income $ 1 $ 9 $ 10 Interest income — 86 31 Dividends received 198 — — Royalty expenses (700) (660) (210) Credit losses on corporate guarantees — — (3,134) * Reversal of (expense of) ECL allowance, net — 15 (16) Fee expenses — (80) — Reimbursements of expenses, primarily including employee benefits and lease and office expenses (1,007) (276) (811) * |
Schedule of key management personnel | Years ended December 31: 2021 2020 2019 Short-term employee benefits $ 1,288 * $ 1,413 * $ 1,451 ** Post-employment benefits 80 — — Directors' fees 659 579 531 Share-based compensation*** 1,087 — — Total $ 3,114 $ 1,992 $ 1,982 * Net of salary and expenses. ** Included the net pay and expenses. ***Amounts computed based on fair values using the Black-Scholes-Merton formula. (See Note 19). |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Financial Instruments | |
Schedule of carrying amounts that approximate their fair values due to their short-term nature | 2021 2020 Carrying Fair Carrying Fair As at December 31: Amount Value Amount Value Financial Assets: FVTPL: Equity securities $ 8,564 $ 8,564 $ 6,230 $ 6,230 Debt securities — — 873 873 Investment funds 3,531 3,531 4,096 4,096 Long-term loan receivable — — 1,237 1,237 FVTOCI: Debt securities 10,786 10,786 11,019 11,019 Financial Liabilities: Financial liabilities measured at amortized cost: Bonds payable $ 35,227 $ 36,693 $ 38,053 $ 39,024 FVTPL: Loan payable 6,817 6,817 5,223 5,223 |
Schedule of statements of financial position classified by level of the fair value hierarchy | As at December 31, 2021 Level 1 Level 2 Level 3 Total Financial Assets: FVTPL: Equity securities $ 4,939 $ 3,625 $ — $ 8,564 Investment funds — — 3,531 3,531 FVTOCI: Debt securities 10,786 — — 10,786 Total $ 15,725 $ 3,625 $ 3,531 $ 22,881 Financial Liabilities: FVTPL: Loan payable $ — $ — $ 6,817 $ 6,817 As at December 31, 2020 Level 1 Level 2 Level 3 Total Financial Assets: FVTPL: Equity securities $ 2,509 $ 3,721 $ — $ 6,230 Debt securities — — 873 873 Investment funds — — 4,096 4,096 Long-term loan receivable — — 1,237 1,237 FVTOCI: Debt securities 11,019 — — 11,019 Total $ 13,528 $ 3,721 $ 6,206 $ 23,455 Financial Liabilities: FVTPL: Loan payable $ — $ — $ 5,223 $ 5,223 |
Schedule of nature of the risks of financial instruments | The nature of the risks that the Group’s financial instruments are subject to as at December 31, 2021 is set out in the following table: Risks Market risks Financial instrument Credit Liquidity Currency Interest rate Other price Cash and restricted cash X X X Equity securities X X Debt securities X X X Investment funds Derivative securities and financial liabilities X X X X Receivables X X Account payables and accrued expenses X X Bonds payable X X X Loan payable X |
Schedule of maximum credit risk exposure | Cash and restricted cash $ 55,015 Debt securities measured at FVTOCI 10,786 Trade and other receivables 68,610 Amounts recognized in the consolidated statement of financial position 134,411 Guarantees — Maximum credit risk exposure $ 134,411 |
Schedule of profit or loss from continuing operations | 2021 2020 2019 Interest income on financial assets not at FVTPL $ 191 $ 483 $ 955 Interest income on financial assets classified at FVTPL 214 48 102 Total interest income $ 405 $ 531 $ 1,057 Interest expense on financial liabilities not at FVTPL $ 1,730 $ 1,856 $ 710 Interest expense on financial liabilities classified at FVTPL 18 25 30 Total interest expense $ 1,748 $ 1,881 $ 740 Dividend income on financial assets at FVTPL $ 244 $ — $ — Dividend income on financial assets classified not at FVTPL — — — Net (loss) gain on financial assets at FVTPL (722) 692 1,142 Loss on loan payable at FVTPL (1,616) (549) (979) Reversal of (impairment) on securities measured at FVTOCI — 3 (3) |
Fair Value Disclosure for Non_2
Fair Value Disclosure for Non-financial Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosure for Non-financial Assets | |
Schedule of non-financial assets measured at fair value in consolidated statements of financial position, classified by level | Assets measured at fair value on a recurring basis as at December 31, 2021: Level 1 Level 2 Level 3 Investment property $ — $ — $ 34,430 Assets measured at fair value on a recurring basis as at December 31, 2020: Level 1 Level 2 Level 3 Investment property $ — $ — $ 36,908 |
Significant Subsidiaries (Table
Significant Subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Significant Subsidiaries | |
Schedule of country of incorporation and proportion of interest | Country of Proportion of Subsidiaries Incorporation Interest * Merkanti Holding plc. Malta 99.96% 1178936 B.C. Ltd. Canada 100% Merkanti (A) International Ltd. Malta 99.96% Merkanti (D) International Ltd. Malta 99.96% * The Group's proportional voting interests are identical to its proportional beneficial interests, except that it holds a 99.68% proportional beneficial interest in each of Merkanti (A) International Ltd. and Merkanti (D) International Ltd. |
Nature of Business (Details)
Nature of Business (Details) | Dec. 31, 2021 |
Nature of Business | |
Percentage of net revenue (core asset) | 7.00% |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies - Foreign Currency Translation (Details) | 12 Months Ended | ||
Dec. 31, 2021EUR (€)USD ($) | Dec. 31, 2020USD ($)EUR (€) | Dec. 31, 2019USD ($)EUR (€) | |
Euro Member Countries, Euro | |||
Foreign Currency Translation | |||
Closing rate | € | 1.4391 | 1.5608 | 1.4583 |
Average rate | € | 1.4828 | 1.5298 | 1.4856 |
United States of America, Dollars | |||
Foreign Currency Translation | |||
Closing rate | $ | 1.2678 | 1.2732 | 1.2988 |
Average rate | $ | 1.2535 | 1.3415 | 1.3269 |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies - Real Estate Held For Sale, Investment Property (Details) € in Thousands, $ in Thousands, $ in Thousands | Dec. 31, 2021EUR (€) | Dec. 31, 2021CAD ($) | Dec. 31, 2019EUR (€) | Aug. 31, 2019EUR (€) | Aug. 31, 2019USD ($) |
Basis of Presentation and Summary of Significant Accounting Policies | |||||
Real Estate Held for Sale Included in Principal Amount of Bonds | € 25,000 | ||||
Bonds Payable. | |||||
Basis of Presentation and Summary of Significant Accounting Policies | |||||
Notional amount | € 25,000 | $ 35,978 | € 25,000 | $ 36,511 | |
Bonds Payable. | Merkanti Holding plc | |||||
Basis of Presentation and Summary of Significant Accounting Policies | |||||
Notional amount | € 25,000 |
Basis of Presentation and Sum_6
Basis of Presentation and Summary of Significant Accounting Policies - Property, Plant and Equipment - Carrying amount (Details) - CAD ($) $ in Thousands | Dec. 31, 2021 | Jan. 01, 2019 | Dec. 31, 2018 |
Lease liabilities recognized on the initial adoption of IFRS 16 | $ 767 | ||
IFRS 16. | |||
Carrying amount of property, plant and equipment as at December 31, 2018 | $ 61,236 | $ 58,325 | |
Lease liabilities recognized on the initial adoption of IFRS 16 | $ 2,911 |
Basis of Presentation and Sum_7
Basis of Presentation and Summary of Significant Accounting Policies - Property, Plant and Equipment (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Processing plant and equipment | |
Property, Plant and Equipment | |
Depreciation, Method | straight-line |
Refinery and power plants | |
Property, Plant and Equipment | |
Depreciation, Method | straight-line |
Office equipment and other | |
Property, Plant and Equipment | |
Depreciation, Method | straight-line |
Office premises | |
Property, Plant and Equipment | |
Depreciation, Method | straight-line |
Bottom of range | Processing plant and equipment | |
Property, Plant and Equipment | |
Useful life measured as period of time, property, plant and equipment | 5 years |
Bottom of range | Refinery and power plants | |
Property, Plant and Equipment | |
Useful life measured as period of time, property, plant and equipment | 20 years |
Bottom of range | Office equipment and other | |
Property, Plant and Equipment | |
Useful life measured as period of time, property, plant and equipment | 3 years |
Bottom of range | Office premises | |
Property, Plant and Equipment | |
Useful life measured as period of time, property, plant and equipment | 2 years |
Top of range | Processing plant and equipment | |
Property, Plant and Equipment | |
Useful life measured as period of time, property, plant and equipment | 20 years |
Top of range | Refinery and power plants | |
Property, Plant and Equipment | |
Useful life measured as period of time, property, plant and equipment | 30 years |
Top of range | Office equipment and other | |
Property, Plant and Equipment | |
Useful life measured as period of time, property, plant and equipment | 10 years |
Top of range | Office premises | |
Property, Plant and Equipment | |
Useful life measured as period of time, property, plant and equipment | 10 years |
Basis of Presentation and Sum_8
Basis of Presentation and Summary of Significant Accounting Policies (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021CAD ($)PlantbblMcf | Dec. 31, 2020CAD ($) | Dec. 31, 2019CAD ($) | |
Basis of Presentation and Summary of Significant Accounting Policies | |||
Percentage of voting power in subsidiaries | 50.00% | ||
Volume of natural gas as numerator of energy equivalent conversion rate | Mcf | 6,000 | ||
Volume of crude oil as denominator of energy equivalent conversion rate | bbl | 1 | ||
Interests in resource properties, carrying amount | $ 254,706 | ||
Exploration and evaluation assets, aggregate carrying amount | 17,007 | ||
Carrying amount | $ 49,065 | $ 51,883 | $ 55,413 |
Number of power plants | Plant | 1 | ||
Combined revenue | $ 71,291 | 59,432 | 113,267 |
Loss before taxes | 17,547 | 11,179 | (16,784) |
Income tax expense | 10,176 | 10,967 | 1,619 |
Net loss | 7,371 | 212 | (18,403) |
Deferred income tax assets | 9,619 | $ 10,856 | |
Disposal groups | |||
Basis of Presentation and Summary of Significant Accounting Policies | |||
Combined revenue | 81,766 | ||
Loss before taxes | (63) | ||
Income tax expense | (575) | ||
Net loss | $ (638) | ||
Net gain on dispositions | $ 207 | ||
Disposal of unit 1 | |||
Basis of Presentation and Summary of Significant Accounting Policies | |||
Combined profit ( as a percent) | 2.00% | ||
Disposal of unit 2 | |||
Basis of Presentation and Summary of Significant Accounting Policies | |||
Combined loss ( as a percent) | 7.00% |
Disclosure on the Group's Obj_3
Disclosure on the Group's Objectives, Policies and Processes for Managing Its Capital Structure (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CAD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2019CAD ($) | Dec. 31, 2018CAD ($) | |
Disclosure on the Group's Objectives, Policies and Processes for Managing Its Capital Structure | ||||
Total debt | $ 35,227 | $ 38,053 | ||
Less:cash | (54,873) | (63,552) | $ (78,274) | $ (67,760) |
Shareholders' equity | 365,600 | 361,544 | ||
Long-term debt | $ 35,227 | $ 38,053 | ||
Long-term debt-to-equity ratio | 0.10 | 0.11 |
Disclosure on the Group's Obj_4
Disclosure on the Group's Objectives, Policies and Processes for Managing Its Capital Structure - Additional information (Details) - CAD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure on the Group's Objectives, Policies and Processes for Managing Its Capital Structure | ||
Non-interest bearing long-term loan payable | $ 6,817 | $ 5,223 |
Long-term liabilities | $ 476 | $ 791 |
Business Segment Information -
Business Segment Information - Segment Operating Results (Details) - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Business Segment Information | |||
Revenue from external customers | $ 71,291 | $ 59,432 | $ 113,267 |
Interest expense | 1,748 | 1,881 | 740 |
Depreciation, amortization and depletion | 481 | 557 | 502 |
Income (loss) before income taxes | 17,547 | 11,179 | (16,784) |
Operating segments | |||
Business Segment Information | |||
Revenue from external customers | 71,291 | 59,432 | 113,267 |
Interest expense | 1,935 | 1,881 | 950 |
Depreciation, amortization and depletion | 11,023 | 11,470 | 8,287 |
Income (loss) before income taxes | 17,547 | 11,179 | (16,784) |
Operating segments | Iron Ore Royalty | |||
Business Segment Information | |||
Revenue from external customers | 40,335 | 31,360 | 5,496 |
Interest expense | 2 | 0 | 0 |
Depreciation, amortization and depletion | 4,911 | 5,225 | 1,628 |
Income (loss) before income taxes | 26,892 | 25,293 | 4,419 |
Operating segments | Industrial Equity | |||
Business Segment Information | |||
Revenue from external customers | 23,428 | 17,666 | 100,184 |
Interest expense | 202 | 31 | 323 |
Depreciation, amortization and depletion | 5,754 | 5,833 | 6,340 |
Income (loss) before income taxes | (4,739) | (1,229) | (15,840) |
Operating segments | Merchant banking | |||
Business Segment Information | |||
Revenue from external customers | 6,527 | 10,406 | 7,565 |
Interest expense | 1,715 | 1,834 | 601 |
Depreciation, amortization and depletion | 357 | 410 | 261 |
Income (loss) before income taxes | 736 | 832 | 4,800 |
Operating segments | All other segments | |||
Business Segment Information | |||
Revenue from external customers | 1,001 | 22 | |
Interest expense | 16 | 16 | 26 |
Depreciation, amortization and depletion | 1 | 2 | 58 |
Income (loss) before income taxes | (5,342) | (13,717) | (10,163) |
Elimination of intersegment amounts | |||
Business Segment Information | |||
Revenue from external customers | (14,419) | (3,726) | (4,409) |
Elimination of intersegment amounts | Industrial Equity | |||
Business Segment Information | |||
Revenue from external customers | (3,385) | (62) | (6) |
Elimination of intersegment amounts | Merchant banking | |||
Business Segment Information | |||
Revenue from external customers | (6,663) | (2,927) | (3,455) |
Elimination of intersegment amounts | All other segments | |||
Business Segment Information | |||
Revenue from external customers | $ (4,371) | $ (737) | $ (948) |
Business Segment Information (D
Business Segment Information (Details) - CAD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Business Segment Information | ||
Segment assets | $ 509,966 | $ 509,125 |
Segment liabilities | 137,432 | 140,401 |
Operating segments | ||
Business Segment Information | ||
Segment assets | 509,966 | 509,125 |
Segment liabilities | 137,432 | 140,401 |
Operating segments | Iron Ore Royalty | ||
Business Segment Information | ||
Segment assets | 216,900 | 226,645 |
Segment liabilities | 49,566 | 53,519 |
Operating segments | Industrial Equity | ||
Business Segment Information | ||
Segment assets | 148,426 | 153,240 |
Segment liabilities | 44,703 | 36,437 |
Operating segments | Merchant banking | ||
Business Segment Information | ||
Segment assets | 96,934 | 107,440 |
Segment liabilities | 42,480 | 49,645 |
Operating segments | All other segments | ||
Business Segment Information | ||
Segment assets | 47,706 | 21,800 |
Segment liabilities | $ 683 | $ 800 |
Business Segment Information _2
Business Segment Information - Change In Cash And Cash Equivalents (Details) - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of operating segments [line items] | |||
Cash (used in) provided by operating activities | $ (6,637) | $ (21,271) | $ (9,807) |
Cash used in investing activities | (971) | 3,419 | (10,202) |
Cash (used in) provided by financing activities | (424) | (498) | 34,792 |
Exchange rate effect on cash | (647) | 3,628 | (4,269) |
(Decrease) increase in cash | (8,679) | (14,722) | 10,514 |
Operating segments | |||
Disclosure of operating segments [line items] | |||
Cash (used in) provided by operating activities | (6,637) | (21,271) | (9,807) |
Cash used in investing activities | (971) | 3,419 | (10,202) |
Cash (used in) provided by financing activities | (424) | (498) | 34,792 |
Exchange rate effect on cash | (647) | 3,628 | (4,269) |
(Decrease) increase in cash | (8,679) | (14,722) | 10,514 |
Iron Ore Royalty | Operating segments | |||
Disclosure of operating segments [line items] | |||
Cash (used in) provided by operating activities | 27,400 | 11,394 | (98) |
Cash (used in) provided by financing activities | 80 | ||
Exchange rate effect on cash | (2) | (35) | |
(Decrease) increase in cash | 27,398 | 11,439 | (98) |
Industrial Equity | Operating segments | |||
Disclosure of operating segments [line items] | |||
Cash (used in) provided by operating activities | 1,836 | 2,298 | 1,678 |
Cash used in investing activities | (1) | (111) | (7,262) |
Cash (used in) provided by financing activities | (208) | (284) | (532) |
Exchange rate effect on cash | 476 | 1,461 | (2,710) |
(Decrease) increase in cash | 2,103 | 3,364 | (8,826) |
Merchant banking | Operating segments | |||
Disclosure of operating segments [line items] | |||
Cash (used in) provided by operating activities | 260 | (3,620) | (2,685) |
Cash used in investing activities | (970) | 4,185 | (1,174) |
Cash (used in) provided by financing activities | (216) | (197) | 35,133 |
Exchange rate effect on cash | (3,389) | 4,055 | (1,771) |
(Decrease) increase in cash | (4,315) | 4,423 | 29,503 |
All other segments | Operating segments | |||
Disclosure of operating segments [line items] | |||
Cash (used in) provided by operating activities | (36,133) | (31,343) | (8,702) |
Cash used in investing activities | (655) | (1,766) | |
Cash (used in) provided by financing activities | (97) | 191 | |
Exchange rate effect on cash | 2,268 | (1,853) | 212 |
(Decrease) increase in cash | $ (33,865) | $ (33,948) | $ (10,065) |
Business Segment Information _3
Business Segment Information - external customers by geographic region (Details) - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Business Segment Information | |||
Gross revenues | $ 71,291 | $ 59,432 | $ 113,267 |
Canada | |||
Business Segment Information | |||
Gross revenues | 56,609 | 39,493 | 13,730 |
Africa | |||
Business Segment Information | |||
Gross revenues | 3,971 | 3,358 | 4,114 |
Americas | |||
Business Segment Information | |||
Gross revenues | 5,263 | 8,877 | 5,880 |
Asia | |||
Business Segment Information | |||
Gross revenues | 286 | 604 | 1,909 |
Europe | |||
Business Segment Information | |||
Gross revenues | $ 5,162 | $ 7,100 | $ 87,634 |
Business Segment Information _4
Business Segment Information - other non-current assets (Details) - CAD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Business Segment Information | ||
Non-current assets other than financial instruments, deferred income tax assets and other non-current assets | $ 351,068 | $ 364,100 |
Africa | ||
Business Segment Information | ||
Non-current assets other than financial instruments, deferred income tax assets and other non-current assets | 25,835 | 27,641 |
Americas | ||
Business Segment Information | ||
Non-current assets other than financial instruments, deferred income tax assets and other non-current assets | 5 | 6 |
Canada | ||
Business Segment Information | ||
Non-current assets other than financial instruments, deferred income tax assets and other non-current assets | 276,081 | 284,151 |
Asia | ||
Business Segment Information | ||
Non-current assets other than financial instruments, deferred income tax assets and other non-current assets | 1 | 5 |
Europe | ||
Business Segment Information | ||
Non-current assets other than financial instruments, deferred income tax assets and other non-current assets | $ 49,146 | $ 52,297 |
Business Segment Information _5
Business Segment Information - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Business Segment Information | |||
Percentage of customer in Royalty segment | 56.00% | 53.00% | 5.00% |
Percentage of merchant banking in total revenue | 0.00% | 0.00% | 13.00% |
Securities (Details)
Securities (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Short-term securities | ||
Current securities | $ 19,256 | $ 18,497 |
Long-term securities | ||
Long-term securities | 3,625 | 3,721 |
Equity | ||
Short-term securities | ||
Securities at FVTPL, publicly traded | 4,939 | 2,509 |
Long-term securities | ||
Equity securities in an affiliate at FVTPL, unlisted | 3,625 | 3,721 |
Investment funds | ||
Short-term securities | ||
Securities at FVTPL, unlisted | 2,761 | 4,096 |
Debt securities | ||
Short-term securities | ||
Securities at FVTPL, unlisted | 770 | 873 |
Securities at FVTOCI, publicly traded | 10,786 | 11,019 |
Sovereign bonds issued by a government | ||
Long-term securities | ||
Debt securities at FVOCI | $ 10,461 | $ 10,845 |
Sovereign bonds, Percent on total short-term securities | 54.00% | 59.00% |
Trade Receivables - Carrying Am
Trade Receivables - Carrying Amount (Details) - CAD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Trade Receivables | ||
Trade receivables, gross amount | $ 4,300 | $ 4,803 |
Less: Allowance for expected credit losses | (136) | (48) |
Trade receivables, net amount | $ 4,164 | $ 4,755 |
Trade Receivables - Loss Allowa
Trade Receivables - Loss Allowance (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Trade Receivables | ||
Loss allowance: opening balance | $ 48 | |
Loss allowance: ending balance | 136 | $ 48 |
Loss allowance measured at an amount equal to lifetime expected credit losses | Financial assets that are credit impaired at year end | ||
Trade Receivables | ||
Loss allowance: opening balance | 48 | 46 |
Additions for the year | 124 | 2 |
Charge-off for the year | (32) | |
Exchange effect | (4) | |
Loss allowance: ending balance | $ 136 | $ 48 |
Trade Receivables - Additional
Trade Receivables - Additional Information (Details) - CAD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Trade Receivables | ||
Allowance for credit losses | $ 136 | $ 48 |
Other Receivables (Details)
Other Receivables (Details) - CAD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Other Receivables | ||
Royalty receivables | $ 5,837 | $ 10,108 |
Interest receivables | 364 | 185 |
Contract assets under contracts with customers | 575 | 106 |
Loans and current accounts* (net of allowance of $nil as of both December 31, 2021 and 2020, respectively) | 47,745 | 21,620 |
Indemnification asset | 6,756 | 6,756 |
Other | 3,169 | 743 |
Total | $ 64,446 | $ 39,518 |
Other Receivables - Contracts w
Other Receivables - Contracts with customers (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Other Receivables | ||
Balance, beginning of the year | $ 106 | |
Reclassification to revenues | (106) | |
A change in the time frame for a right to consideration to become unconditional | (575) | $ (106) |
Balance, end of the year | $ 575 | $ 106 |
Inventories (Details)
Inventories (Details) - CAD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Inventories | ||
Raw materials | $ 991 | $ 1,358 |
Work-in-progress | 109 | 55 |
Inventories | $ 1,100 | $ 1,413 |
Investment Property (Details)
Investment Property (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Investment Property | ||
Balance, beginning of year | $ 36,908 | $ 38,205 |
Change in fair value during the year | 407 | 760 |
Disposals | (7) | (4,567) |
Currency translation adjustments | (2,878) | 2,510 |
Balance, end of year | $ 34,430 | $ 36,908 |
Investment Property - profit or
Investment Property - profit or loss in relation to investment property (Details) - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Investment Property | |||
Rental income | $ 1,381 | $ 1,376 | $ 1,652 |
Direct operating expenses (including repairs and maintenance) arising from investment property during the year | $ 709 | $ 216 | $ 266 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment | |||
Opening balance | $ 51,883 | $ 55,413 | |
Ending balance | 49,065 | 51,883 | |
Net book value of right-of-use assets | 692 | 1,109 | $ 1,188 |
Gross carrying amount | |||
Property, Plant and Equipment | |||
Opening balance | 72,140 | 72,482 | |
Additions | 1,072 | 597 | |
Disposals | (381) | (279) | |
Currency translation adjustments | (385) | (660) | |
Ending balance | 72,446 | 72,140 | |
Gross carrying amount | Right-of-use assets | |||
Property, Plant and Equipment | |||
Opening balance | 1,792 | 1,554 | |
Additions | 84 | 368 | |
Disposals | (263) | (210) | |
Currency translation adjustments | (90) | 80 | |
Ending balance | 1,523 | 1,792 | |
Gross carrying amount | Refinery and power plants | |||
Property, Plant and Equipment | |||
Opening balance | 65,913 | 66,701 | |
Additions | 0 | 25 | |
Currency translation adjustments | (171) | (813) | |
Ending balance | 65,742 | 65,913 | |
Gross carrying amount | Processing plant and equipment | |||
Property, Plant and Equipment | |||
Opening balance | 3,399 | 3,307 | |
Additions | 0 | 88 | |
Disposals | 0 | ||
Currency translation adjustments | 2 | 4 | |
Ending balance | 3,401 | 3,399 | |
Gross carrying amount | Office equipment | |||
Property, Plant and Equipment | |||
Opening balance | 1,036 | 920 | |
Additions | 988 | 116 | |
Disposals | (118) | (69) | |
Currency translation adjustments | (126) | 69 | |
Ending balance | 1,780 | 1,036 | |
Accumulated depreciation | |||
Property, Plant and Equipment | |||
Opening balance | 20,257 | 17,069 | |
Additions | 3,536 | 3,701 | |
Disposals | (294) | (247) | |
Currency translation adjustments | (118) | (266) | |
Ending balance | 23,381 | 20,257 | |
Accumulated depreciation | Right-of-use assets | |||
Property, Plant and Equipment | |||
Opening balance | 683 | 366 | |
Additions | 436 | 514 | |
Disposals | (263) | (210) | |
Currency translation adjustments | (25) | 13 | |
Ending balance | 831 | 683 | |
Accumulated depreciation | Refinery and power plants | |||
Property, Plant and Equipment | |||
Opening balance | 17,286 | 14,883 | |
Additions | 2,586 | 2,716 | |
Disposals | 0 | ||
Currency translation adjustments | (33) | (313) | |
Ending balance | 19,839 | 17,286 | |
Accumulated depreciation | Processing plant and equipment | |||
Property, Plant and Equipment | |||
Opening balance | 1,771 | 1,454 | |
Additions | 385 | 314 | |
Disposals | 0 | ||
Currency translation adjustments | 2 | 3 | |
Ending balance | 2,158 | 1,771 | |
Accumulated depreciation | Office equipment | |||
Property, Plant and Equipment | |||
Opening balance | 517 | 366 | |
Additions | 129 | 157 | |
Disposals | (31) | (37) | |
Currency translation adjustments | (62) | 31 | |
Ending balance | $ 553 | $ 517 |
Property, Plant and Equipment -
Property, Plant and Equipment - Additional Information (Details) - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment | |||
Carrying amount | $ 49,065 | $ 51,883 | $ 55,413 |
Gross carrying amount | |||
Property, Plant and Equipment | |||
Carrying amount | $ 72,446 | $ 72,140 | $ 72,482 |
A power plant | |||
Property, Plant and Equipment | |||
Discount rate (as a percent) | 7.40% | 7.20% | |
Impairments | $ 0 | ||
Reasonably possible increase in discount rate (as a percent) | 1.00% | ||
Increase (decrease) in net loss due to reasonably possible increase in discount rate | $ 0 | ||
A power plant | Gross carrying amount | |||
Property, Plant and Equipment | |||
Carrying amount | $ 25,835 | $ 27,642 |
Interests in Resource Propert_3
Interests in Resource Properties (Details) - CAD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Interests in Resource Properties | |||
Tangible exploration and evaluation assets | $ 254,706 | $ 261,355 | |
Interest in an iron ore development project | |||
Interests in Resource Properties | |||
Tangible exploration and evaluation assets | 206,439 | 211,350 | |
Hydrocarbon development and production assets | |||
Interests in Resource Properties | |||
Tangible exploration and evaluation assets | 31,260 | 32,998 | |
Hydrocarbon Probable Reserves | |||
Interests in Resource Properties | |||
Tangible exploration and evaluation assets | 12,367 | 12,367 | $ 12,367 |
Hydrocarbon Undeveloped lands | |||
Interests in Resource Properties | |||
Tangible exploration and evaluation assets | $ 4,640 | $ 4,640 | $ 4,640 |
Interests in Resource Propert_4
Interests in Resource Properties - assets included in non-current assets (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Interests In Resource Properties [Roll Forward] | ||
Opening balance | $ 261,355 | |
Ending balance | 254,706 | $ 261,355 |
Gross carrying amount | ||
Disclosure Of Interests In Resource Properties [Roll Forward] | ||
Opening balance | 263,957 | 264,903 |
Decommissioning obligations | 838 | (946) |
Ending balance | 264,795 | 263,957 |
Accumulated depreciation | ||
Disclosure Of Interests In Resource Properties [Roll Forward] | ||
Opening balance | 19,609 | 11,840 |
Additions | 7,487 | 7,769 |
Ending balance | 27,096 | 19,609 |
Interest in iron ore mine and hydrocarbon development and production assets | ||
Disclosure Of Interests In Resource Properties [Roll Forward] | ||
Opening balance | 244,348 | 253,063 |
Ending balance | 237,699 | 244,348 |
Interest in an iron ore development project | ||
Disclosure Of Interests In Resource Properties [Roll Forward] | ||
Opening balance | 211,350 | |
Ending balance | 206,439 | 211,350 |
Interest in an iron ore development project | Gross carrying amount | ||
Disclosure Of Interests In Resource Properties [Roll Forward] | ||
Opening balance | 218,203 | 218,203 |
Decommissioning obligations | 0 | 0 |
Ending balance | 218,203 | 218,203 |
Interest in an iron ore development project | Accumulated depreciation | ||
Disclosure Of Interests In Resource Properties [Roll Forward] | ||
Opening balance | 6,853 | 1,628 |
Additions | 4,911 | 5,225 |
Ending balance | 11,764 | 6,853 |
Hydrocarbon development and production assets | ||
Disclosure Of Interests In Resource Properties [Roll Forward] | ||
Opening balance | 32,998 | |
Ending balance | 31,260 | 32,998 |
Hydrocarbon development and production assets | Gross carrying amount | ||
Disclosure Of Interests In Resource Properties [Roll Forward] | ||
Opening balance | 45,754 | 46,700 |
Decommissioning obligations | 838 | (946) |
Ending balance | 46,592 | 45,754 |
Hydrocarbon development and production assets | Accumulated depreciation | ||
Disclosure Of Interests In Resource Properties [Roll Forward] | ||
Opening balance | 12,756 | 10,212 |
Additions | 2,576 | 2,544 |
Ending balance | $ 15,332 | $ 12,756 |
Interests in Resource Propert_5
Interests in Resource Properties - exploration and evaluation assets (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Movements In Exploration And Evaluation Assets [Roll Forward] | ||
Opening balance | $ 261,355 | |
Ending balance | 254,706 | $ 261,355 |
Hydrocarbon Probable Reserves | ||
Disclosure Of Movements In Exploration And Evaluation Assets [Roll Forward] | ||
Opening balance | 12,367 | 12,367 |
Additions | 0 | 0 |
Disposal | 0 | 0 |
Ending balance | 12,367 | 12,367 |
Hydrocarbon Undeveloped lands | ||
Disclosure Of Movements In Exploration And Evaluation Assets [Roll Forward] | ||
Opening balance | 4,640 | 4,640 |
Additions | 0 | 0 |
Disposal | 0 | 0 |
Ending balance | $ 4,640 | $ 4,640 |
Interests in Resource Propert_6
Interests in Resource Properties - Additional Information (Details) - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Interest in an iron ore development project | |||
Interests in Resource Properties | |||
Expected future minimum sublease payments receivable | $ 3,250 | ||
Reversal of non cash impairment loss | $ 0 | $ 0 | $ 0 |
Percentage of pre tax discount rate | 8.08% | 6.43% | 8.30% |
Hydrocarbon properties | |||
Interests in Resource Properties | |||
Reversal of non cash impairment loss | $ 0 | $ 0 | $ 0 |
Percentage of pre tax discount rate | 10.00% | 10.00% | 10.00% |
Hydrocarbon properties | Discount rate utilized above 1 percentage | |||
Interests in Resource Properties | |||
Reasonably possible increase in discount rate (as a percent) | 1.00% |
Deferred Income Tax Assets an_3
Deferred Income Tax Assets and Liabilities (Details) - CAD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred Income Tax Assets and Liabilities | ||
Non-capital tax loss carry-forwards | $ 18,692 | $ 24,677 |
Interests in resource properties | (59,864) | (62,418) |
Other assets | (5,655) | (7,251) |
Other liabilities | (11,015) | (10,267) |
Net | (57,842) | (55,259) |
Presented on the consolidated statements of financial position as follows: | ||
Deferred income tax assets | 9,619 | 10,856 |
Deferred income tax liabilities | (67,461) | (66,115) |
Net | $ (57,842) | $ (55,259) |
Deferred Income Tax Assets an_4
Deferred Income Tax Assets and Liabilities - accumulated non-capital losses (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021CAD ($) | |
Canada | |
Deferred Income Tax Assets and Liabilities | |
Gross amount | $ 4,628 |
Amount for which no deferred income tax asset is recognized | $ 15 |
Canada | Bottom of range | |
Deferred Income Tax Assets and Liabilities | |
Expiration period for estimated accumulated non capital losses | 2037 |
Canada | Top of range | |
Deferred Income Tax Assets and Liabilities | |
Expiration period for estimated accumulated non capital losses | 2041 |
U.S.A | |
Deferred Income Tax Assets and Liabilities | |
Gross amount | $ 84 |
Expiration dates for estimated accumulated non capital losses | Indefinite |
Germany | |
Deferred Income Tax Assets and Liabilities | |
Gross amount | $ 423 |
Amount for which no deferred income tax asset is recognized | $ 0 |
Expiration dates for estimated accumulated non capital losses | Indefinite |
Malta | |
Deferred Income Tax Assets and Liabilities | |
Gross amount | $ 92,417 |
Amount for which no deferred income tax asset is recognized | $ 63,628 |
Expiration dates for estimated accumulated non capital losses | Indefinite |
Africa. | |
Deferred Income Tax Assets and Liabilities | |
Gross amount | $ 26,310 |
Amount for which no deferred income tax asset is recognized | $ 0 |
Expiration dates for estimated accumulated non capital losses | Indefinite |
Account Payables and Accrued _3
Account Payables and Accrued Expenses (Details) - CAD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Account Payables and Accrued Expenses | ||
Trade and account payables | $ 6,579 | $ 9,923 |
Interest payables | 482 | 521 |
Value-added, goods and services and other taxes (other than income taxes) | 1,550 | 1,194 |
Compensation | 272 | 289 |
Contract liabilities under contracts with customers | 1,864 | 2,767 |
Lease liabilities | 291 | 384 |
Provision for a financial loss | 283 | 575 |
Due to an affiliate (see Note 25) | 25 | 27 |
Account payables and accrued expenses | $ 11,346 | $ 15,680 |
Account Payables and Accrued _4
Account Payables and Accrued Expenses - Movement of contract liabilities (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Account Payables and Accrued Expenses | ||
Balance, beginning of the year | $ 2,767 | $ 4,637 |
Considerations received | 614 | 2,329 |
Reclassification to profit or loss upon satisfaction of performance obligations | (1,517) | (1,715) |
Write-off | (2,600) | |
Other adjustments | 116 | |
Balance, end of the year | $ 1,864 | $ 2,767 |
Account Payables and Accrued _5
Account Payables and Accrued Expenses - recognize the contract liabilities (Details) - CAD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Account Payables and Accrued Expenses | |||
Year 1 after the year-end (included in current liabilities) | $ 1,864 | $ 2,767 | |
Contract liabilities, revenue | $ 1,864 | $ 2,767 | $ 4,637 |
Account Payables and Accrued _6
Account Payables and Accrued Expenses - Future lease payments included in the measurement of the lease liabilities (Details) $ in Thousands | Dec. 31, 2021CAD ($) |
Disclosure of maturity analysis of operating lease payments [line items] | |
Principal | $ 767 |
Interest | 39 |
Total | 806 |
2022 | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Principal | 291 |
Interest | 23 |
Total | 314 |
2023 | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Principal | 233 |
Interest | 13 |
Total | 246 |
2024 | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Principal | 243 |
Interest | 3 |
Total | $ 246 |
Account Payables and Accrued _7
Account Payables and Accrued Expenses - Principal amounts lease Liablities (Details) - CAD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Account Payables and Accrued Expenses | ||
Current liabilities | $ 291 | $ 384 |
Non-current liabilities | 476 | $ 791 |
Total lease liabilities | $ 767 |
Account Payables and Accrued _8
Account Payables and Accrued Expenses - Lease liabilities (Details) - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Account Payables and Accrued Expenses | |||
Interest expense | $ 42 | $ 59 | $ 71 |
Expense relating to short-term leases with payments directly charged to profit or loss | 358 | 533 | 881 |
Expense relating to leases of low-value assets with payments directly charged to profit or loss | 115 | 0 | |
Expense relating to variable lease payments not included in the measurement of lease liabilities | 0 | 0 | |
Total cash outflows for leases | 939 | 1,043 | 1,824 |
Gain on COVID-19-related rent concessions | 0 | (6) | |
Depreciation charge for right-of-use assets (see Note 11) | 436 | 514 | 738 |
Carrying amount of right-of-use assets at the end of the reporting period (see Note 11) | $ 692 | $ 1,109 | $ 1,188 |
Bonds Payable - Maturities (Det
Bonds Payable - Maturities (Details) € in Thousands, $ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2020CAD ($) | Dec. 31, 2021EUR (€) | Dec. 31, 2021CAD ($) | Dec. 31, 2019CAD ($) | Aug. 31, 2019EUR (€) | Aug. 31, 2019USD ($) | |
Disclosure of amounts to be recovered or settled after twelve months for classes of assets and liabilities that contain amounts to be recovered or settled both no more and more than twelve months after reporting date [line items] | ||||||
Total | $ 38,053 | $ 35,227 | ||||
Bonds Payable. | ||||||
Disclosure of amounts to be recovered or settled after twelve months for classes of assets and liabilities that contain amounts to be recovered or settled both no more and more than twelve months after reporting date [line items] | ||||||
Principal | € 25,000 | 35,978 | € 25,000 | $ 36,511 | ||
Interest | 7,195 | |||||
Total | $ 43,173 | |||||
2022 | ||||||
Disclosure of amounts to be recovered or settled after twelve months for classes of assets and liabilities that contain amounts to be recovered or settled both no more and more than twelve months after reporting date [line items] | ||||||
Principal | 0 | |||||
Interest | 1,439 | |||||
Total | 1,439 | |||||
2023 | ||||||
Disclosure of amounts to be recovered or settled after twelve months for classes of assets and liabilities that contain amounts to be recovered or settled both no more and more than twelve months after reporting date [line items] | ||||||
Principal | 0 | |||||
Interest | 1,439 | |||||
Total | 1,439 | |||||
2024 | ||||||
Disclosure of amounts to be recovered or settled after twelve months for classes of assets and liabilities that contain amounts to be recovered or settled both no more and more than twelve months after reporting date [line items] | ||||||
Principal | 0 | |||||
Interest | 1,439 | |||||
Total | 1,439 | |||||
2025 | ||||||
Disclosure of amounts to be recovered or settled after twelve months for classes of assets and liabilities that contain amounts to be recovered or settled both no more and more than twelve months after reporting date [line items] | ||||||
Principal | 0 | |||||
Interest | 1,439 | |||||
Total | 1,439 | |||||
2026 | ||||||
Disclosure of amounts to be recovered or settled after twelve months for classes of assets and liabilities that contain amounts to be recovered or settled both no more and more than twelve months after reporting date [line items] | ||||||
Principal | $ 35,978 | |||||
Interest | $ 1,439 | |||||
Total | $ 37,417 |
Bonds Payable (Details)
Bonds Payable (Details) € in Thousands, $ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Aug. 31, 2019EUR (€) | Aug. 31, 2019USD ($) | Dec. 31, 2021CAD ($) | Dec. 31, 2019CAD ($) | Dec. 31, 2021EUR (€) | Dec. 31, 2020CAD ($) | Aug. 31, 2019USD ($) | |
Disclosure of detailed information about borrowings [line items] | |||||||
Commissions and issuance costs | $ 1,078 | ||||||
Bond payables | $ 35,227 | $ 38,053 | |||||
Bonds Payable. | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Notional amount | € 25,000 | $ 35,978 | € 25,000 | $ 36,511 | |||
Commissions and issuance costs | € 738 | $ 1,078 | |||||
Nominal interest rate | 4.00% | 4.00% | |||||
Effective interest rate | 4.41% | ||||||
Bond payables | $ 35,227 | € 24,478 |
Decommissioning Obligations (De
Decommissioning Obligations (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Decommissioning Obligations | ||
Decommissioning obligations, beginning of year | $ 14,072 | $ 15,018 |
Changes in estimates | 838 | (946) |
Accretion | 186 | |
Decommissioning obligations, end of year | $ 15,096 | $ 14,072 |
Decommissioning Obligations - A
Decommissioning Obligations - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Decommissioning Obligations | ||
Decommissioning obligations using an average discount rate | 1.20% | 0.70% |
Risk free rate considered for decommissioning obligations | 1.95% | 0.70% |
Shareholders' Equity - Movement
Shareholders' Equity - Movements in capital stock (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021CAD ($)shares | |
Disclosure of classes of share capital [line items] | |
Balance at the beginning | $ 368,724 |
Balance at the end | $ 372,534 |
Issued capital. | |
Disclosure of classes of share capital [line items] | |
Balance (in shares) | shares | 12,620,448 |
Balance at the beginning | $ 16 |
Stock dividends (in shares) | shares | 2,236,133 |
Stock dividends | $ 3 |
Balance at the end (in shares) | shares | 14,856,581 |
Balance at the end | $ 19 |
Additional paid-in capital. | |
Disclosure of classes of share capital [line items] | |
Balance at the beginning | 312,471 |
Stock dividends | (3) |
Balance at the end | $ 312,468 |
Capital Stock and additional paid-in capital | |
Disclosure of classes of share capital [line items] | |
Balance (in shares) | shares | 12,620,448 |
Balance at the beginning | $ 312,487 |
Stock dividends (in shares) | shares | 2,236,133 |
Balance at the end (in shares) | shares | 14,856,581 |
Balance at the end | $ 312,487 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Shareholders' Equity | ||
Total number of common shares held as treasury stock | 77,279 | 65,647 |
Total carrying amount of treasury stock | $ 2,643 | $ 2,643 |
Treasury stock, number of shares issued for stock dividends | 11,632 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) - USD ($) | Nov. 30, 2021 | May 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Shareholders? Equity | ||||
Value of shares authorized | $ 450,000 | |||
Par value of shares authorized | $ 0.001 | $ 0.001 | ||
Description of voting rights | one vote | |||
Percentage of stock dividends distributed | 8.00% | 9.00% | ||
Common Shares | ||||
Shareholders? Equity | ||||
Number of shares authorized | 300,000,000 | |||
Par value of shares authorized | $ 0.001 | |||
Preferred Shares | ||||
Shareholders? Equity | ||||
Number of shares authorized | 150,000,000 | |||
Par value of shares authorized | $ 0.001 |
Consolidated Statements of Op_4
Consolidated Statements of Operations Information - Revenue (Details) - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Consolidated Statements of Operations Information | |||
Royalty, goods and products and services | $ 60,201 | $ 48,441 | $ 101,013 |
Interest | 405 | 531 | 1,057 |
Dividends | 244 | 0 | 0 |
Gain on securities, net | 758 | 931 | |
Other, including medical and real estate sectors | 10,441 | 9,702 | 10,266 |
Revenue | $ 71,291 | $ 59,432 | $ 113,267 |
Consolidated Statements of Op_5
Consolidated Statements of Operations Information - costs of sales and services (Details) - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Consolidated Statements of Operations Information | |||
Royalty, goods and products and services | $ 22,933 | $ 22,102 | $ 95,189 |
Market value increase on commodity inventories | 0 | (160) | |
(Reversal of) write-downs of inventories | (19) | 469 | 1,822 |
Gain on derivative contracts, net | (1,376) | (122) | |
Fair value gain on investment property, net of write-down of real estate for sale | (407) | (757) | (3,122) |
Loss (gain) on dispositions of subsidiaries, net | 0 | 546 | (2,243) |
Gains on settlements and derecognition of liabilities | (390) | (2,600) | (1,168) |
Change in fair value of loan payable measured at FVTPL | 1,616 | 549 | 979 |
Loss on securities, net | 2,320 | ||
Other, including medical and real estate sectors | 6,241 | 6,561 | 5,386 |
Total costs of sales and services | $ 30,918 | $ 26,870 | $ 96,561 |
Consolidated Statements of Op_6
Consolidated Statements of Operations Information - Inventories as costs of goods sold (Details) - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Consolidated Statements of Operations Information | |||
Net assets (liabilities) in excess of considerations received | $ 331 | $ (485) | |
Reclassification adjustment for the exchange differences upon dispositions of subsidiaries | 215 | (1,758) | |
Loss (gain) on dispositions of subsidiaries, net (see Note 28) | 546 | (2,243) | |
Inventories as costs of goods sold (including depreciation expenses allocated to costs of goods sold) | $ 3,488 | $ 5,041 | $ 72,414 |
Consolidated Statements of Op_7
Consolidated Statements of Operations Information - Credit losses (Details) - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of financial assets [line items] | |||
Credit losses on loans and receivables and guarantees, net of reversal | $ 88 | $ (3,108) | $ 13,398 |
Credit losses on corporate guarantees | 3,134 | ||
Former consolidated entity | |||
Disclosure of financial assets [line items] | |||
Credit losses on loans and receivables and guarantees, net of reversal | 6,057 | ||
Credit losses relating to the consideration on sale of subsidiary | $ 3,200 |
Consolidated Statements of Op_8
Consolidated Statements of Operations Information - selling, general and administrative expenses (Details) - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Consolidated Statements of Operations Information | |||
Compensation (wages and salaries) | $ 4,551 | $ 4,083 | $ 6,762 |
Legal and professional | 6,395 | 6,794 | 5,050 |
Accounting | 1,238 | 1,294 | 1,965 |
Consulting and fees | 3,423 | 2,836 | 2,365 |
Depreciation and amortization | 481 | 557 | 502 |
Office | 948 | 708 | 874 |
Reimbursement of expenses (net of recovery) | 1,018 | 257 | 749 |
Other | 3,090 | 3,372 | 4,306 |
Selling, general and administrative expense | $ 21,144 | $ 19,901 | $ 22,573 |
Consolidated Statements of Op_9
Consolidated Statements of Operations Information - Additional information on the nature of expenses incurred in continuing operations (Details) - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Consolidated Statements of Operations Information | |||
Depreciation, depletion and amortization | $ 11,023 | $ 11,470 | $ 8,287 |
Employee benefits expenses | $ 6,922 | $ 7,253 | $ 13,727 |
Consolidated Statements of O_10
Consolidated Statements of Operations Information - Additional Information (Details) - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Consolidated Statements of Operations Information | |||
Royalty, goods and products and services | $ 60,201 | $ 48,441 | $ 101,013 |
Royalty revenue | 40,137 | 31,448 | 5,687 |
Natural gas | 13,236 | 7,584 | 7,712 |
Power and electricity | 2,927 | 3,358 | 4,075 |
Food products | 2,721 | 4,602 | 2,465 |
Fees | $ 1,180 | $ 1,449 | 3,547 |
Metals | $ 77,527 |
Share-Based Compensation - chan
Share-Based Compensation - changes in stock options granted under the plans (Details) | 12 Months Ended | 24 Months Ended |
Dec. 31, 2021CAD ($)Option$ / sharesshares | Dec. 31, 2020Option$ / shares | |
Share-Based Compensation | ||
Number of options, granted | $ | 1,538,596 | |
2017 Plan | ||
Share-Based Compensation | ||
Number of options, Outstanding | 426,000 | 450,000 |
Number of options, Forfeited | (32,500) | (4,000) |
Number of options, Exercised | (20,000) | |
Number of options, granted | 1,307,000 | |
Number of options, Outstanding | 2,001,822 | 426,000 |
Number of options, exercisable | 2,001,822 | |
Options available for granting in future periods | 213,659 | |
Weighted average exercise price per share, outstanding | $ / shares | $ 8.76 | $ 8.76 |
Weighted average exercise price per share, Forfeited | $ / shares | 8.76 | 8.76 |
Weighted average exercise price per share, Exercised | $ / shares | 8.76 | |
Exercise price per share | $ / shares | 13.15 | |
Weighted average exercise price per share, outstanding | $ / shares | 10.31 | $ 8.76 |
Weighted average exercise price per share, Options exercisable | $ / shares | $ 10.31 | |
Adjustments for stock dividends issued in 2021 | shares | 301,322 |
Share-Based Compensation - stoc
Share-Based Compensation - stock options outstanding and exercisable (Details) | Dec. 31, 2021OptionsY$ / shares |
Share-Based Compensation | |
Number of options, outstanding and exercisable | Options | 2,001,822 |
Eight Point Seven Six Exercise Price Per Share | |
Share-Based Compensation | |
Weighted average remaining contractual life | Y | 8.54 |
Exercise Price, $7.44 per share | |
Share-Based Compensation | |
Exercise price per share | $ / shares | $ 7.44 |
Number of options, outstanding and exercisable | Options | 463,226 |
Weighted average remaining contractual life | Y | 5.92 |
Exercise Price, $11.17 per share | |
Share-Based Compensation | |
Exercise price per share | $ / shares | $ 11.17 |
Number of options, outstanding and exercisable | Options | 1,538,596 |
Weighted average remaining contractual life | Y | 9.33 |
Share-Based Compensation - shar
Share-Based Compensation - share-based compensation expenses (Details) - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-Based Compensation | |||
Share-based compensation expenses arising from stock options granted by the Company | $ 2,497 | $ 0 | $ 0 |
Share-Based Compensation - assu
Share-Based Compensation - assumptions and inputs (Details) - 12 months ended Dec. 31, 2021 | CAD ($)Y$ / shares | CAD ($)Y$ / shares$ / shares |
Share-Based Compensation | ||
Number of options granted (on a post-stock dividend basis) | $ | 1,538,596 | 1,538,596 |
Vesting requirements | Immediately | Immediately |
Contractual life | 9 years 3 months 29 days | 9 years 3 months 29 days |
Method of settlement | In equity | In equity |
Exercise price per share | $ 11.17 | |
Market price per share on grant date | $ 10.01 | $ 10.01 |
Expected volatility | 39.24% | 39.24% |
Expected option life | Y | 9.33 | 9.33 |
Expected dividends | 8.00% | 8.00% |
Risk-free interest rate | 1.48% | 1.48% |
Fair value of option granted (per option) | (per share) | $ 1.27 | $ 1.62 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) | Dec. 29, 2021$ / shares | Apr. 30, 2021shares | Jul. 31, 2019Options$ / shares | Dec. 31, 2021OptionCAD ($)$ / shares |
Share-Based Compensation | ||||
Number of options, granted | $ | 1,538,596 | |||
2017 Plan | ||||
Share-Based Compensation | ||||
Number of options, granted | Option | 1,307,000 | |||
Weighted average exercise price of share options granted in share-based payment arrangement | $ 13.15 | |||
Number of shares | shares | 1,307,000 | |||
Term year | 10 years | |||
Exercise price per share | $ 13.15 | |||
Covered Employees | ||||
Share-Based Compensation | ||||
Common shares | shares | 1,326,591 | |||
Covered Employees | Maximum | ||||
Share-Based Compensation | ||||
Common shares | shares | 1,901,994 | |||
Covered Employees | Minimum | ||||
Share-Based Compensation | ||||
Common shares | shares | 575,403 | |||
Stock Dividend | ||||
Share-Based Compensation | ||||
Common shares | shares | 400,000 | |||
Common shares | shares | 425,000 | |||
Common Shares | ||||
Share-Based Compensation | ||||
Number of options, granted | Options | 20,000 | |||
Weighted average exercise price of share options granted in share-based payment arrangement | $ 8.76 | |||
Closing price of shares | 14.76 | |||
Exercise price per share | $ 8.76 | |||
Common Shares | 2017 Plan | ||||
Share-Based Compensation | ||||
Weighted average exercise price of share options granted in share-based payment arrangement | $ 13.15 | |||
Exercise price per share | $ 13.15 |
Income Taxes - components of in
Income Taxes - components of income tax expense (Details) - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Taxes | |||
Current taxes | $ (215) | $ (95) | $ (384) |
Deferred taxes | (2,074) | (4,798) | (98) |
Resource property expense | (7,887) | (6,074) | (1,137) |
Provision for income taxes | $ (10,176) | $ (10,967) | $ (1,619) |
Income Taxes - reconciliation o
Income Taxes - reconciliation of (loss) income before income taxes (Details) - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Taxes | |||
Income (loss) before income taxes | $ 17,547 | $ 11,179 | $ (16,784) |
Computed (expense) recovery of income taxes | (5,982) | (6,521) | 4,743 |
Decrease (increase) in income taxes resulting from: | |||
Effect of change in income tax rate | 0 | (13) | 891 |
Other non-taxable income | 160 | 1 | 24 |
Revisions to prior years | 351 | (21) | 88 |
Capital gains and losses on dispositions, net | 83 | 35 | (7,663) |
Resource property revenue taxes | (5,758) | (4,433) | (830) |
Unrecognized losses in current year | (199) | (1) | (228) |
Previously unrecognized deferred income tax assets, net | 302 | 113 | 1,229 |
Permanent differences | (262) | (92) | (178) |
Other non-taxable income | 1,156 | ||
Other, net | (27) | (33) | 305 |
Income tax expense | $ 10,176 | $ 10,967 | $ 1,619 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2021 | |
New MFC | |
Income Taxes | |
Statutory tax rate | 0.00% |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) - CAD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Earnings (Loss) Per Share | |||||
Basic income (loss) attributable to holders of common shares | $ 7,564 | $ 369 | $ (18,553) | ||
Effect of dilutive securities: | |||||
Diluted income (loss) | $ 7,564 | $ 369 | $ (18,553) | ||
Weighted average number of common shares outstanding - basic | 14,779,302 | 14,779,302 | [1] | 14,765,938 | [1] |
Effect of dilutive securities: | |||||
Options | 129,010 | 0 | 0 | ||
Weighted average number of common shares outstanding - diluted | 14,908,312 | 14,779,302 | [1] | 14,765,938 | [1] |
Earnings (loss) per share - basic | $ 0.51 | $ 0.03 | [1] | $ (1.26) | [1] |
Earnings (loss) per share - diluted | $ 0.51 | $ 0.03 | [1] | $ (1.26) | [1] |
[1] | * The amounts have been restated for the stock dividends distributed in the year ended December 31, 2021 (see Notes 17 and 21). |
Earnings (Loss) Per Share - Add
Earnings (Loss) Per Share - Additional Information (Details) | 24 Months Ended |
Dec. 31, 2020shares | |
Earnings (Loss) Per Share | |
Number of stock option not included in diluted earnings per share | 501,485 |
Commitments and Contingencies (
Commitments and Contingencies (Details) € in Thousands | 12 Months Ended | |||
Dec. 31, 2021CAD ($) | Dec. 31, 2021EUR (€) | Dec. 31, 2020CAD ($) | Dec. 31, 2020EUR (€) | |
Commitments and Contingencies | ||||
Litigation guarantee | $ 68,363,000 | € 43,800 | ||
Litigation guarantee, if proposed amendment allowed | $ 130,951,000 | € 90,995 | ||
Number of subsidiaries | 2 | 2 | ||
Maximum percentage of share capital of subsidiaries | 10.00% | |||
Fair value of rights | $ 0 |
Consolidated Statements of Ca_4
Consolidated Statements of Cash Flows Supplemental Disclosure - reconciliation of liabilities arising from financing activities (Details) - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Bonds Payable. | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Opening balance | $ 38,053 | $ 35,418 | |
Cash flows | $ 35,433 | ||
Non-cash changes: | |||
Accretion | 145 | 143 | 533 |
Cumulative translation adjustments | (2,971) | 2,492 | (548) |
Ending balance | 35,227 | 38,053 | 35,418 |
Lease liabilities. | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Opening balance | 1,175 | 1,196 | |
Cash flows | (466) | (510) | (943) |
Non-cash changes: | |||
Initial adoption of IFRS 16 | 2,911 | ||
Additions | 84 | 368 | 1,583 |
Dispositions of subsidiaries | (487) | ||
Accretion | 42 | 59 | 71 |
COVID-19 related rent concessions | (6) | ||
Termination | (1,809) | ||
Cumulative translation adjustments | (68) | 68 | (130) |
Ending balance | $ 767 | $ 1,175 | $ 1,196 |
Consolidated Statements of Ca_5
Consolidated Statements of Cash Flows Supplemental Disclosure - Non-cash transactions (Details) - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Consolidated Statements of Cash Flows - Supplemental Disclosure | |||
Recovery of deferred income tax | $ 1,156 | ||
Derecognition of liability | 390 | ||
Consideration for derecognition of liability | $ 0 | ||
Non-cash transaction liabilities | $ 391 | $ 1,128 | |
Non controlling interest receivable | $ 390 |
Related Party Transactions (Det
Related Party Transactions (Details) - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of transactions between related parties [line items] | |||
Fee income | $ 1 | $ 9 | $ 10 |
Interest income | 86 | 31 | |
Dividends received | 198 | ||
Royalty expenses | (700) | (660) | (210) |
Credit losses on corporate guarantees | (3,134) | ||
Fee expenses | 80 | ||
Reimbursements of expenses, primarily including employee benefits and lease and office expenses | $ (1,007) | (276) | (811) |
IFRS 9 | |||
Disclosure of transactions between related parties [line items] | |||
Reversal of (expense of) ECL allowance, net | $ (15) | $ 16 |
Related Party Transactions - Ke
Related Party Transactions - Key management personnel (Details) - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transactions | |||
Short-term employee benefits | $ 1,288 | $ 1,413 | $ 1,451 |
Post-employment benefits | 80 | ||
Directors' fees | 659 | 579 | 531 |
Share-based compensation | 1,087 | 0 | 0 |
Total | $ 3,114 | $ 1,992 | $ 1,982 |
Related Party Transactions - Pu
Related Party Transactions - Puttable instrument financial liability (Details) € in Thousands, $ in Thousands | 12 Months Ended | 24 Months Ended | ||||
Dec. 31, 2021CAD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2019CAD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2021CAD ($) | Dec. 31, 2019EUR (€) | |
Related Party Transactions | ||||||
Minimum percentage of significant equity interest | 10.00% | |||||
Indemnification asset | $ 6,756 | $ 6,756 | $ 6,756 | |||
Interest percentage on loans provided | 6.30% | |||||
Current account payables | $ 25 | 27 | 25 | |||
Reimbursements of expenses, primarily including employee benefits and lease and office expenses | (1,007) | (276) | $ (811) | |||
Gain from disposition of subsidiary | 229 | |||||
Credit losses on corporate guarantees | (3,134) | |||||
Royalty expense | 700 | 660 | 210 | |||
Company Controlled By Chairman | ||||||
Related Party Transactions | ||||||
Loans to corporate entities | 819 | 818 | 819 | |||
Current account receivables | 46,926 | 20,802 | 46,926 | |||
Current account payables | 25 | 27 | $ 25 | |||
Reimbursements of expenses, primarily including employee benefits and lease and office expenses | $ 1,007 | $ 276 | 811 | |||
Nominal consideration on sale of non-core metal processing business | € | € 1 | |||||
Gain from disposition of subsidiary | 906 | |||||
Merkanti Holding plc | Company Controlled By Chairman | ||||||
Related Party Transactions | ||||||
Bonds issued | $ 455 | € 316 | ||||
Total outstandaing percentage of offering and bonds issued | 1.25% |
Financial Instruments -Fair val
Financial Instruments -Fair values of the group's financial instruments (Details) - CAD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Bonds Payable. | Financial liabilities measured at amortized cost | ||
Financial Instruments | ||
Financial Liabilities Carrying Amount | $ 35,227 | $ 38,053 |
Financial Liabilities Fair Value | 36,693 | 39,024 |
Investment funds | Financial liabilities fair value through profit or loss | ||
Financial Instruments | ||
Financial Assets Carrying Amount | 3,531 | 4,096 |
Financial Assets Fair Value | 3,531 | 4,096 |
Long-term loan receivable | Financial liabilities fair value through profit or loss | ||
Financial Instruments | ||
Financial Assets Carrying Amount | 1,237 | |
Financial Assets Fair Value | 1,237 | |
FVTPL | Loan payable | ||
Financial Instruments | ||
Financial Liabilities Carrying Amount | 6,817 | 5,223 |
Financial Liabilities Fair Value | 6,817 | 5,223 |
FVTPL | Equity securities | ||
Financial Instruments | ||
Financial Assets Carrying Amount | 8,564 | 6,230 |
Financial Assets Fair Value | 8,564 | 6,230 |
FVTPL | Debt securities | ||
Financial Instruments | ||
Financial Assets Carrying Amount | 873 | |
Financial Assets Fair Value | 873 | |
FVTOCI | Debt securities | ||
Financial Instruments | ||
Financial Assets Carrying Amount | 10,786 | 11,019 |
Financial Assets Fair Value | $ 10,786 | $ 11,019 |
Financial Instruments - Financi
Financial Instruments - Financial position classified by level of the fair value hierarchy (Details) - CAD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Financial Instruments | ||
Financial assets fair value through profit or loss | $ 22,881 | $ 23,455 |
Loan payable | Financial liabilities fair value through profit or loss | ||
Financial Instruments | ||
Financial liabilities fair value through profit or loss | 6,817 | 5,223 |
Loan payable | Financial liabilities fair value through profit or loss | Level 1 | ||
Financial Instruments | ||
Financial liabilities fair value through profit or loss | 0 | 0 |
Loan payable | Financial liabilities fair value through profit or loss | Level 2 | ||
Financial Instruments | ||
Financial liabilities fair value through profit or loss | 0 | 0 |
Loan payable | Financial liabilities fair value through profit or loss | Level 3 | ||
Financial Instruments | ||
Financial liabilities fair value through profit or loss | 6,817 | 5,223 |
FVTOCI | Level 1 | ||
Financial Instruments | ||
Financial assets fair value through profit or loss | 15,725 | 13,528 |
FVTOCI | Level 2 | ||
Financial Instruments | ||
Financial assets fair value through profit or loss | 3,625 | 3,721 |
FVTOCI | Level 3 | ||
Financial Instruments | ||
Financial assets fair value through profit or loss | 3,531 | 6,206 |
Equity securities | FVTPL | ||
Financial Instruments | ||
Financial assets fair value through profit or loss | 8,564 | 6,230 |
Equity securities | FVTPL | Level 1 | ||
Financial Instruments | ||
Financial assets fair value through profit or loss | 4,939 | 2,509 |
Equity securities | FVTPL | Level 2 | ||
Financial Instruments | ||
Financial assets fair value through profit or loss | 3,625 | 3,721 |
Equity securities | FVTPL | Level 3 | ||
Financial Instruments | ||
Financial assets fair value through profit or loss | 0 | 0 |
Debt securities | FVTPL | ||
Financial Instruments | ||
Financial assets fair value through profit or loss | 3,531 | 873 |
Debt securities | FVTPL | Level 1 | ||
Financial Instruments | ||
Financial assets fair value through profit or loss | 0 | |
Debt securities | FVTPL | Level 2 | ||
Financial Instruments | ||
Financial assets fair value through profit or loss | 0 | |
Debt securities | FVTPL | Level 3 | ||
Financial Instruments | ||
Financial assets fair value through profit or loss | 3,531 | 873 |
Debt securities | FVTOCI | ||
Financial Instruments | ||
Financial assets fair value through profit or loss | 10,786 | 11,019 |
Debt securities | FVTOCI | Level 1 | ||
Financial Instruments | ||
Financial assets fair value through profit or loss | 10,786 | 11,019 |
Debt securities | FVTOCI | Level 2 | ||
Financial Instruments | ||
Financial assets fair value through profit or loss | 0 | 0 |
Debt securities | FVTOCI | Level 3 | ||
Financial Instruments | ||
Financial assets fair value through profit or loss | $ 0 | 0 |
Investment funds | FVTPL | ||
Financial Instruments | ||
Financial assets fair value through profit or loss | 4,096 | |
Investment funds | FVTPL | Level 1 | ||
Financial Instruments | ||
Financial assets fair value through profit or loss | 0 | |
Investment funds | FVTPL | Level 2 | ||
Financial Instruments | ||
Financial assets fair value through profit or loss | 0 | |
Investment funds | FVTPL | Level 3 | ||
Financial Instruments | ||
Financial assets fair value through profit or loss | 4,096 | |
Long-term loan receivable | FVTPL | ||
Financial Instruments | ||
Financial assets fair value through profit or loss | 1,237 | |
Long-term loan receivable | FVTPL | Level 1 | ||
Financial Instruments | ||
Financial assets fair value through profit or loss | 0 | |
Long-term loan receivable | FVTPL | Level 2 | ||
Financial Instruments | ||
Financial assets fair value through profit or loss | 0 | |
Long-term loan receivable | FVTPL | Level 3 | ||
Financial Instruments | ||
Financial assets fair value through profit or loss | $ 1,237 |
Financial Instruments - Credit
Financial Instruments - Credit risk exposure (Details) - CAD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Financial Instruments | ||||
Cash and restricted cash | $ 54,873 | $ 63,552 | $ 78,274 | $ 67,760 |
Credit risk | ||||
Financial Instruments | ||||
Cash and restricted cash | 55,015 | |||
Debt securities measured at FVTOCI | 10,786 | |||
Trade and other receivables | 68,610 | |||
Amounts recognized in the consolidated statement of financial position | 134,411 | |||
Guarantees | 0 | |||
Maximum credit risk exposure | $ 134,411 |
Financial Instruments - Additio
Financial Instruments - Additional disclosure (Details) - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Financial Instruments | |||
Interest income on financial assets not at FVTPL | $ 191 | $ 483 | $ 955 |
Interest income on financial assets classified at FVTPL | 214 | 48 | 102 |
Total interest income | 405 | 531 | 1,057 |
Interest expense on financial liabilities not at FVTPL | 1,730 | 1,856 | 710 |
Interest expense on financial liabilities classified at FVTPL | 18 | 25 | 30 |
Total interest expense | 1,748 | 1,881 | 740 |
Dividend income on financial assets at FVTPL | 244 | 0 | 0 |
Dividend income on financial assets classified not at FVTPL | 0 | 0 | 0 |
Net gain on financial assets at FVTPL | (722) | 692 | 1,142 |
Loss on loan payable at FVTPL | (1,616) | (549) | (979) |
Reversal of impairment on securities measured at FVTOCI | $ 0 | $ 3 | $ (3) |
Financial Instruments - Concent
Financial Instruments - Concentration risk (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Customer from royalty segment | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Percentage of financial receivables | 9.00% |
Indemnification asset and receivables due from an affiliate | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Percentage of financial receivables | 79.00% |
Percentage of financial assets | 37.00% |
Financial Instruments (Details)
Financial Instruments (Details) - 12 months ended Dec. 31, 2021 $ in Thousands, $ in Thousands | CAD ($) | USD ($) |
Financial Instruments | ||
Undiscounted contractual amount due out of surplus cash of subsidiary | $ 53,336 | $ 42,070 |
Difference between the carrying amount of the loan payable and the amount the Group would be contractually required to pay at maturity | $ 46,519 | |
Bottom of range | Credit risk | ||
Financial Instruments | ||
Average contractual credit period for trade receivables | 25 days | |
Top of range | Credit risk | ||
Financial Instruments | ||
Minimum expected repayment period of undiscounted contractual due | 12 years | |
Average contractual credit period for trade receivables | 45 days | |
Average contractual credit period for sales | 180 days |
Financial Instruments - Currenc
Financial Instruments - Currency risk sensitivity analysis (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021CAD ($) | |
Financial Instruments | |
Increase in Loss from continuing operations if U.S. dollar currency weakened 10% against functional currencies | $ 496 |
Decrease in Loss from continuing operations if U.S. dollar currency strengthened 10% against functional currencies | 481 |
Decrease in Loss from continuing operations if Euro weakened 10% against functional currencies | 3,568 |
Increase in Loss from continuing operations if Euro strengthened 10% against functional currencies | 3,568 |
Decrease in Loss from continuing operations if Canadian dollar weakened 10% against functional currencies | 5,134 |
Increase in Loss from continuing operations if Canadian dollar strengthened 10% against functional currencies | $ 5,134 |
Financial Instruments - Interes
Financial Instruments - Interest rate risk sensitivity analysis (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021CAD ($) | |
Bottom of range | Interest rate risk | |
Financial Instruments | |
Decrease in Loss from continuing operations 1% if benchmark interest rate is lower with all other variables held constant | $ 710 |
Increase in Loss from continuing operations if 1% benchmark interest rate is higher with all other variables held constant | 614 |
Bottom of range | Other price risk | |
Financial Instruments | |
Decrease in other comprehensive loss from continuing operations if equity prices strengthened 10% with all other variables held constant | 684 |
Top of range | Other price risk | |
Financial Instruments | |
Increase in other comprehensive loss from continuing operations if equity prices weakened 10% with all other variables held constant | $ 684 |
Fair Value Disclosure for Non_3
Fair Value Disclosure for Non-financial Assets (Details) - CAD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of fair value measurement of assets [line items] | ||
Assets | $ 509,966 | $ 509,125 |
Recurring fair value measurement | Investment property. | Level 1 | ||
Disclosure of fair value measurement of assets [line items] | ||
Assets | 0 | 0 |
Recurring fair value measurement | Investment property. | Level 2 | ||
Disclosure of fair value measurement of assets [line items] | ||
Assets | 0 | 0 |
Recurring fair value measurement | Investment property. | Level 3 | ||
Disclosure of fair value measurement of assets [line items] | ||
Assets | $ 34,430 | $ 36,908 |
Significant Subsidiaries (Detai
Significant Subsidiaries (Details) | 12 Months Ended |
Dec. 31, 2021 | |
MFC Bancorp and its Significant Subsidiaries | |
Proportion of Interest | 99.68% |
Merkanti Holding plc | |
MFC Bancorp and its Significant Subsidiaries | |
Subsidiaries | Merkanti Holding plc. |
Country of Incorporation | Malta |
Proportion of Interest | 99.96% |
1178936 B.C. Ltd | |
MFC Bancorp and its Significant Subsidiaries | |
Subsidiaries | 1178936 B.C. Ltd. |
Country of Incorporation | Canada |
Proportion of Interest | 100.00% |
Merkanti (A) International Ltd. | |
MFC Bancorp and its Significant Subsidiaries | |
Subsidiaries | Merkanti (A) International Ltd. |
Country of Incorporation | Malta |
Proportion of Interest | 99.96% |
Merkanti (D) International Ltd. | |
MFC Bancorp and its Significant Subsidiaries | |
Subsidiaries | Merkanti (D) International Ltd. |
Country of Incorporation | Malta |
Proportion of Interest | 99.96% |
Significant Subsidiaries - Addi
Significant Subsidiaries - Additional Information (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020CAD ($)shares | Dec. 31, 2019CAD ($) | Dec. 31, 2017subsidiary | |
Disclosure of subsidiaries [line items] | ||||
Proportion of ownership interest in subsidiary | 99.68% | |||
Proportion of voting rights held in subsidiary | 50.00% | |||
Proportion of voting rights held by non-controlling interests | 50.00% | |||
Loss on disposition of subsidiaries | $ 546 | |||
(Gain) loss on dispositions of subsidiaries | $ (546) | $ 2,243 | ||
Gain from disposition of subsidiary | $ 229 | |||
Number of subsidiaries | subsidiary | 2 | |||
Maximum percentage of ownership of each subsidiary to exercise rights of non controlling interest | 0.50% | |||
Merkanti Holding plc | ||||
Disclosure of subsidiaries [line items] | ||||
Proportion of ownership interest in subsidiary | 99.96% | |||
Number of shares issued | shares | 20,000 | |||
Cash consideration | $ 8 | |||
Cash receivable | $ 23 |
Subsequent Events (Details)
Subsequent Events (Details) $ / shares in Units, $ in Thousands, € in Millions | Apr. 29, 2022$ / shares | Apr. 29, 2022$ / shares | Feb. 22, 2022$ / shares | Mar. 31, 2022EUR (€)AnnualPayment | Feb. 28, 2022CAD ($)$ / shares |
Merkanti Holding plc | |||||
Subsequent Events | |||||
Number of Consecutive Annual Payments | AnnualPayment | 3 | ||||
Acquisition of Sparkasse (Holdings) Malta Ltd. | Merkanti Holding plc | |||||
Subsequent Events | |||||
Annual payment | € | € 2.5 | ||||
Cash dividends | |||||
Subsequent Events | |||||
Annual payment | $ | $ 3,714 | ||||
Dividends declared per share | (per share) | $ 0.34 | $ 0.27 | $ 0.18 | $ 0.25 |