Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | 24 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2021 | Feb. 28, 2022 | Jun. 30, 2021 | |
Document and Entity Information [Abstract] | ||||
Document Type | 10-K/A | |||
Document Annual Report | true | |||
Document Period End Date | Dec. 31, 2021 | |||
Document Transition Report | false | |||
Entity File Number | 333-249533 | |||
Entity Registrant Name | FORTITUDE GOLD CORPORATION | |||
Entity Incorporation, State or Country Code | CO | |||
Entity Tax Identification Number | 85-2602691 | |||
Entity Address, Address Line One | 2886 Carriage Manor Point | |||
Entity Address, City or Town | Colorado Springs | |||
Entity Address, State or Province | CO | |||
Entity Address, Postal Zip Code | 80906 | |||
City Area Code | 719 | |||
Local Phone Number | 717-9825 | |||
Title of 12(b) Security | N/A | |||
Trading Symbol | N/A | |||
Security Exchange Name | NONE | |||
Entity Well-known Seasoned Issuer | No | |||
Entity Voluntary Filers | No | |||
Entity Current Reporting Status | Yes | |||
Entity Interactive Data Current | Yes | |||
Entity Filer Category | Non-accelerated Filer | |||
Entity Small Business | true | |||
Entity Emerging Growth Company | true | |||
Entity Ex Transition Period | true | |||
ICFR Auditor Attestation Flag | false | |||
Entity Shell Company | false | |||
Entity Public Float | $ 138,000,000 | |||
Entity Common Stock, Shares Outstanding | 23,997,876 | |||
Entity Central Index Key | 0001828377 | |||
Current Fiscal Year End Date | --12-31 | |||
Document Fiscal Year Focus | 2021 | |||
Document Fiscal Period Focus | FY | |||
Amendment Flag | true | |||
Amendment Description | This Amendment No. 2 on Form 10-K/A (the "Amendment No. 2") amends the Annual Report on Form 10-K of Fortitude Gold Corporation. (the "Company") on Form 10-K for the fiscal year ended December 31, 2021, as filed with the Securities and Exchange Commission (the "SEC") on March 1, 2022 (the "Original Filing") and amended with Amendment No. 1 filed on March 3, 2022 (the "Amendment No. 1"). This Amendment No. 2 is being filed for the purpose of to add or revise disclosures the following: (i) Item 1 Part 1 has been revised to include the information required by Item 101(h) of Regulation S-K and to clarify which properties are currently in production, under development, or undergoing exploration contained within Item 1; (ii) Item 1A of Part 1 to remove the risk factor "We are an Emerging Growth Company, subject to less stringent reporting and regulatory requirements of other publicly held companies and this status may have an adverse effect on our ability to attract interest in our common stock"; (iii) Item 2 of Part I is reorganized and includes additional disclosures, clarifications, and table tabulations, related to our properties as prescribed by Items 1300 through 1305 of Regulation S-K; (iv) Item 7 of Part II includes further details related to our increase in revenues and gross profits; and file amended versions of the Technical Report Summary of the Isabella Pearl Mine ("IP TRS") and Initial Assessment Technical Summary for the Golden Mile Property ("GM TRS"). Our original IP TRS was amended to: (i) include an opinion from the qualified persons as to adequacy of the metallurgical data used to prepare the Technical Report Summary in Section 10.7 Metallurgical Summary; (ii) clarify the location of the property in the Section 3 Property Description and Location; and (iii) disclose the $20 million revenue deduction for excise tax calculation in table 18.2 Isabella Pearl Life-of-Mine Operating Cash Cost per Tonne Processed ("Table 18.2"), update the calculation in years subsequent to 2022 in Table 18.2 as the deduction was inadvertently omitted in the original IP TRS, and update all tables correlating to Table 18.2. Our original GM TRS was amended to (i) include an opinion from the qualified persons as to adequacy of the metallurgical data used to prepare the Technical Report Summary in Section 10 Mineral Processing and Metallurgical Testing; and (ii) clarification of cut-off grades in Section 11.12 Mineral Resource Estimate.Item 15 of Part IV of Form 10-K has been amended to contain Exhibit 96.2 and Exhibit 96.6 IP TRS and GM TRS, respectively. The consents for the IP TRS are attached as Exhibit 96.3, 96.4, and 96.5 in Item 15 of Part IV of Form 10 -K/A. The consents for the GM TRS are attached as Exhibit 96.7, 96.8, and 96.9 in Item 15 of Part IV of Form 10-K/A.In addition, Item 15 of Part IV of Form 10-K has been amended to contain Exhibit 23.2 which was inadvertently omitted from the Original Filing.Pursuant to the SEC rules, Item 15 of Part IV of Form 10-K has also been amended to contain the currently dated certificates from the Company's principal executive officer and principal financial officer pursuant to Sections 302, 303, and 308 of the Sarbanes-Oxley Act of 2002. The certificates of the Company's principal executive officer and principal financial officer are attached to this Amendment as Exhibits 31.1, 31.2, and 32. Other than with respect to the information contained herein with respect to Item 1 of Part I, Item 1A of Part 1, Item 2 of Part 1, and Item 7 of Part II, this Amendment No. 2 does not change any of the information contained in the Original Filing or Amendment No. 1. Other than as specifically set forth herein, we have not updated or amended the disclosures contained in the Original Filing or Amendment 1 to reflect events that have occurred since the date thereof. Accordingly, this Amendment No. 2 should be read in conjunction with our Original Filing and Amendment No. 1. Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Original Filing and Amendment No. 1. | |||
Auditor Name | Haynie and Company | |||
Auditor Firm ID | 457 | 166 | ||
Auditor Location | Salt Lake City, Utah |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 40,017 | $ 27,774 |
Accounts receivable | 238 | 145 |
Inventories | 37,550 | 23,051 |
Prepaid taxes | 1,289 | |
Prepaid expenses and other current assets | 2,228 | 1,962 |
Total current assets | 81,322 | 52,932 |
Property, plant and mine development, net | 37,226 | 50,990 |
Operating lease assets, net | 463 | 6,198 |
Deferred tax assets | 509 | 959 |
Other non-current assets | 2,909 | 1,946 |
Total assets | 122,429 | 113,025 |
Current liabilities: | ||
Accounts payable | 2,127 | 1,715 |
Loans payable, current | 87 | 665 |
Finance lease liabilities, current | 23 | 398 |
Operating lease liabilities, current | 463 | 6,198 |
Mining taxes payable | 1,699 | 1,001 |
Other current liabilities | 912 | 1,092 |
Total current liabilities | 5,311 | 11,069 |
Asset retirement obligations | 4,725 | 3,844 |
Loans payable, long-term | 30 | 117 |
Finance lease liabilities, long-term | 15 | 27 |
Total liabilities | 10,081 | 15,057 |
Shareholders' equity: | ||
Preferred stock - $0.01 par value, 20,000,000 shares authorized and nil outstanding at September 30, 2022 and December 31, 2021 | ||
Common stock - $0.01 par value, 200,000,000 shares authorized and 24,024,542 shares outstanding at September 30, 2022 and 23,961,208 shares outstanding at December 31, 2021 | 240 | 212 |
Additional paid-in capital | 103,476 | 99,682 |
Retained earnings | 8,632 | (1,926) |
Total shareholders' equity | 112,348 | 97,968 |
Total liabilities and shareholders' equity | $ 122,429 | $ 113,025 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 20,000,000 | |
Preferred stock, outstanding (in shares) | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, outstanding (in shares) | 23,961,208 | 21,211,208 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||
Sales, net | $ 82,109 | $ 53,967 |
Mine cost of sales: | ||
Production costs | 26,661 | 27,495 |
Depreciation and amortization | 14,728 | 10,241 |
Reclamation and remediation | 156 | 48 |
Total mine cost of sales | 41,545 | 37,784 |
Mine gross profit | 40,564 | 16,183 |
Costs and expenses: | ||
General and administrative expenses | 11,443 | 2,882 |
Exploration expenses | 5,396 | 2,648 |
Other expense, net | 190 | 233 |
Total costs and expenses | 17,029 | 5,763 |
Income before income and mining taxes | 23,535 | 10,420 |
Mining and income tax expense | 5,669 | 203 |
Net income | $ 17,866 | $ 10,217 |
Net income per common share: | ||
Basic | $ 0.75 | $ 0.48 |
Diluted | $ 0.74 | $ 0.48 |
Weighted average shares outstanding: | ||
Basic | 23,875,631 | 21,211,208 |
Diluted | 24,108,365 | 21,211,208 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Gold Resource Corporation Common shares | Gold Resource Corporation Additional Paid-in Capital | Gold Resource Corporation Retained Earnings (Accumulated Deficit) | Gold Resource Corporation | Common shares | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Total |
Balance, at Beginning of period at Dec. 31, 2019 | $ 78,083 | $ (12,143) | $ 65,940 | |||||
Balance, at Beginning of period (in shares) at Dec. 31, 2019 | 10,000 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Capital contributions by Parent | $ 21,811 | $ 21,811 | ||||||
Issuance of shares under private placement | $ 212 | (212) | ||||||
Issuance of shares under private placement (in shares) | 21,211,208 | |||||||
Net income | $ 10,217 | 10,217 | ||||||
Balance, at End of period at Dec. 31, 2020 | $ 212 | $ 99,682 | $ (1,926) | $ 97,968 | $ 212 | 99,682 | (1,926) | 97,968 |
Balance, at End of period (in shares) at Dec. 31, 2020 | 21,221,208 | 21,211,208 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock-based compensation | $ 23 | 3,382 | 3,405 | |||||
Stock-based compensation (in shares) | 2,250,000 | |||||||
Issuance of shares under private placement | $ 5 | 495 | 500 | |||||
Issuance of shares under private placement (in shares) | 500,000 | |||||||
Dividends | (7,308) | (7,308) | ||||||
True up from spin-off | (83) | (83) | ||||||
Net income | 17,866 | 17,866 | ||||||
Balance, at End of period at Dec. 31, 2021 | $ 240 | $ 103,476 | $ 8,632 | $ 112,348 | ||||
Balance, at End of period (in shares) at Dec. 31, 2021 | 23,961,208 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 17,866 | $ 10,217 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Depreciation and amortization | 14,859 | 10,377 |
Stock-based compensation | 3,405 | |
Deferred taxes | 450 | (959) |
Reclamation and remediation accretion | 156 | 48 |
Other operating adjustments | (303) | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (93) | (145) |
Inventories | (10,866) | (2,300) |
Prepaid expenses and other current assets | (266) | (1,643) |
Other non-current assets | 19 | (2,085) |
Accounts payable and other accrued liabilities | 29 | (1,508) |
Income and mining taxes payable | (591) | 1,001 |
Net cash provided by operating activities | 24,665 | 13,003 |
Cash flows from investing activities: | ||
Capital expenditures | (4,546) | (6,488) |
Net cash used in investing activities | (4,546) | (6,488) |
Cash flows from financing activities: | ||
Contributions from GRC | 21,711 | |
Dividends paid | (7,308) | |
Issuance of common stock | 500 | |
Repayment of loans payable | (665) | (879) |
Repayment of capital leases | (403) | (439) |
Net cash used in financing activities | (7,876) | 20,393 |
Net increase in cash and cash equivalents | 12,243 | 26,908 |
Cash and cash equivalents at beginning of period | 27,774 | 866 |
Cash and cash equivalents at end of period | 40,017 | 27,774 |
Supplemental Cash Flow Information | ||
Interest expense paid | 26 | 86 |
Income and mining taxes paid | 5,893 | |
Non-cash investing and financing activities: | ||
Change in capital expenditures in accounts payable | 503 | (1,544) |
Change in estimate for asset retirement costs | 794 | 1,159 |
Stock contributed from Parent | 100 | |
Equipment purchased under finance lease | 16 | |
Right-of-Use assets acquired through operating lease | $ 1,820 | $ 7,265 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Nature of Operations and Summary of Significant Accounting Policies | |
Nature of Operations and Summary of Significant Accounting Policies | 1. Nature of Operations and Summary of Significant Accounting Policies Nature of Operations Fortitude Gold Corporation (the “Company,” “FGC,” or “Fortitude”) was organized under the laws of the State of Colorado on August 11, 2020. On August 18, 2020, Gold Resource Corporation (“GRC” or “Parent”) transferred all of the 10,000 issued and outstanding common stock shares of its wholly-owned subsidiary GRC Nevada Inc. (“GRCN”) to Fortitude in exchange for 21,211,208 shares of Fortitude’s common stock. With the share transfer, GRCN became a wholly-owned subsidiary of Fortitude and Fortitude became a wholly-owned subsidiary of GRC. The assets and liabilities were recorded at historical cost as the entities were under common control. On December 31, 2020, GRC completed the spin-off of FGC, which separated FGC’s business, activities, and operations into a separate, public company. The Spin-Off was effected by the distribution of all of the outstanding shares of FGC common stock to GRC’s shareholders. GRC’s shareholders received one share of FGC common stock for every 3.5 shares of GRC’s common stock held as of December 28, 2020. In February 2021, FGC began trading on the OTC Market under the ticker symbol “FRTT”. Subsequently the symbol was changed to “FTCO” and was up listed to the OTCQB in March 2021. FGC is a mining company which pursues gold and silver projects that are expected to have both low operating costs and high returns on capital. Significant Accounting Policies Basis of Presentation The consolidated financial statements included herein are expressed in United States dollars and conform to United States generally accepted accounting principles (“U.S. GAAP”). The consolidated financial statements include the accounts of the Company, its subsidiaries GRCN, Walker Lane Minerals Corp. (“WLMC”), County Line Holdings, Inc., and County Line Minerals Corp. All significant intercompany balances and transactions have been eliminated. The consolidated balance sheet as of December 31, 2020 and statements of operations, shareholders’ equity and cash flows for the year ended December 31, 2020 have been have been prepared on a “carve-out” basis to include allocations of certain expenses for human resources, accounting, and other services, plus share-based compensation allocated from GRC. The expense allocations have been determined on basis that the Company and GRC consider to be reasonable reflections of the utilization of services, or the benefits provided. In addition, the assets and liabilities include only those assigned to the carve-out entities. The allocations and related estimates and assumptions are described more fully in Note 2 Risk and Uncertainties As a mining company, the Company’s revenue, profitability and future rate of growth are substantially dependent on prevailing metal prices for gold and to a lesser extent silver. Historically, the commodity markets have been very volatile, and there can be no assurance that commodity prices will not be subject to wide fluctuations in the future. A substantial or extended decline in commodity prices could have a material adverse effect on the Company’s financial position, results of operations, cash flows, access to capital and on the quantities of reserves that the Company can economically produce. The carrying value of the Company’s property, plant and mine development, net; inventories; stockpiles and ore on leach pads; and deferred income tax assets are particularly sensitive to the outlook for the market price for gold. A decline in the price of gold and silver from current levels could result in material impairment charges related to these assets. In addition to changes in gold prices, other factors such as changes in mine plans, increases in costs, geotechnical failures, changes in social, environmental or regulatory requirements, impacts of global events such as the COVID-19 pandemic and management’s decision to reprioritize or abandon a development project can adversely affect the Company’s ability to recover its investment in certain assets and result in impairment charges. During the year ended December 31, 2021, the COVID-19 pandemic has had a material impact on the global economy, the scale and duration of which remain uncertain. The Company remained fully operational during 2021, however, the future impact of this pandemic could include temporary or sustained site closures, significant COVID-19 specific costs, volatility in the prices for gold and other metals, logistical challenges shipping the Company’s products, additional travel restrictions, other supply chain disruptions and workforce interruptions, including loss of life. Depending on the duration and extent of the impact of COVID-19 and the success of a widely available vaccine, this could materially impact the Company’s results of operations, cash flows and financial condition and could result in material impairment charges to the Company’s property, plant and mine development, net; inventories; stockpiles and ore on leach pads; and deferred income tax assets. As the situation continues to evolve, the Company will continue to closely monitor market conditions and respond accordingly. The Company has completed various scenario planning analyses to consider potential impacts of COVID 19 on its business, including volatility in commodity prices, temporary disruptions and/or curtailments of operating activities (voluntary or involuntary). The Company believes that its operations will be sufficient for the foreseeable future, although there is no assurance that will be the case. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. The more significant areas requiring the use of management estimates and assumptions relate to mineral reserves that are the basis for future cash flow estimates utilized in impairment calculations and units-of-production depreciation calculations; future metal prices; environmental remediation, reclamation and closure obligations; estimates of recoverable gold and other minerals in stockpile and leach pad inventories; estimates of fair value related to asset impairment assessments; write-downs of inventory, stockpiles and ore on leach pads to net realizable value; valuation allowances for deferred tax assets; provisional amounts related to income tax effects of newly enacted tax laws. Management routinely makes judgments and estimates about the effects of matters that are inherently uncertain and bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances. Actual results could differ from these estimates. Cash and Cash Equivalents Cash and cash equivalents consist of all cash balances and highly liquid investments with a remaining maturity of three months or less when purchased and are carried at cost. Accounts receivable Accounts receivable consists of trade receivables, which are recorded from the sale of doré. Inventories The major inventory categories are set forth below: Stockpile Inventories : Note 4 Doré Inventory: Leach Pad: Estimates of recoverable ore on the leach pad are calculated from the quantities of ore placed on the leach pad (measured tonnes added to the leach pad), the grade of ore placed on the leach pad (based on assay data) and a recovery percentage (based on ore type). Although the quantities of recoverable ore placed on the leach pad are reconciled by comparing the grades of ore placed on pads to the quantities of metal actually recovered (metallurgical balancing), the nature of the leaching process inherently limits the ability to precisely monitor inventory levels. As a result, the metallurgical balancing process is constantly monitored and estimates are refined based on actual results over time. Changes in assumptions and estimates are accounted for on a prospective basis. Materials and Supplies Inventories Write-downs of inventory are charged to expense. Property, Plant and Mine Development Land and Mineral Rights : Mine Development : Drilling costs incurred during the production phase for operational ore control are allocated to inventory costs and then included as a component of production costs. All other drilling and related costs are expensed as incurred. Mine development costs are amortized using the UOP method based on estimated recoverable ounces in proven and probable reserves. The cost of removing overburden and waste materials to access the ore body at an open pit mine prior to the production phase are referred to as “pre-stripping costs”. Pre-stripping costs are capitalized during the development of an open pit mine. Where multiple open pits exist at a mining complex utilizing common processing facilities, pre-stripping costs are capitalized at each pit. The removal, production, and sale of deminimis saleable materials may occur during the development phase of an open pit mine and are assigned incremental mining costs related to the removal of that material. The production phase of an open pit mine commences when saleable minerals, beyond a de minimis amount, are produced. Stripping costs incurred during the production phase of a mine are variable production costs that are included as a component of inventory to be recognized in costs applicable to sales in the same period as the revenue from the sale of inventory. Property and Equipment Construction in Progress Depreciation and Amortization Range of Lives Asset retirement costs UOP Furniture, computer and office equipment 3 to 4 years Light vehicles and other mobile equipment 4 years Machinery and equipment UOP to 4 years Plant facilities, leach pad, and related infrastructure UOP to 7 years Mine development and mineral interests UOP Impairment of Long-Lived Assets The Company evaluates its long-lived assets for impairment when events or changes in circumstances indicate that the related carrying amounts may not be recoverable. Asset impairment is considered to exist if the total estimated future cash flows on an undiscounted basis are less than the carrying amount of the asset. If an impairment is indicated, a determination is made whether an impairment has occurred and any impairment losses are measured as the excess of carrying value over the total discounted estimated future cash flows, or the application of an expected fair value technique in the absence of an observable market price and are charged to expense on the Company’s consolidated statements of operations. In estimating future cash flows, assets are grouped at the lowest level for which there are identifiable cash flows that are largely independent of future cash flows from other asset groups. Existing reserves and other mineralized material are included when estimating the fair value in determining whether the assets are impaired. The Company’s estimates of future cash flows are based on numerous assumptions including expected gold and other commodity prices, production levels, capital requirements and estimated salvage values. It is possible that actual future cash flows will be significantly different than the estimates, as actual future quantities of recoverable minerals, gold and other commodity prices, production levels and costs and capital requirements are each subject to significant risks and uncertainties. Fair Value of Financial Instruments The recorded amounts of cash and cash equivalents, accounts payable, and loans payable approximate fair value because of the short maturity of those instruments. Revenue Recognition Gold doré sales are recognized upon the satisfaction of performance obligations, which occurs when price and quantity are agreed upon with the customer. Silver doré sales are immaterial. Doré sales are recorded using quoted metal prices, net of refining charges. Production Costs Production costs include labor and benefits, royalties, and doré shipping costs, mining subcontractors, fuel and lubricants, legal and professional fees related to mine operations, materials and supplies, repairs and maintenance, explosives, insurance, reagents, travel, medical services, security equipment, office rent, tools, and other costs that support mining operations. Exploration Costs Exploration costs are charged to expense as incurred. Costs to identify new mineral resources and to evaluate potential resources are considered exploration costs. Asset Retirement Obligation An asset retirement obligation is recognized when incurred and is recorded as a liability at fair value. The liability is accreted over time through periodic charges to earnings. In addition, the asset retirement cost is capitalized as part of the asset’s carrying value and amortized over the life of the related asset. Asset retirement costs are periodically adjusted to reflect changes in the estimated present value resulting from the passage of time and revisions to the estimates of either the timing or amount of the reclamation costs. The estimated asset retirement obligation is based on when spending for an existing disturbance is expected to occur. The Company reviews, on an annual basis, unless otherwise deemed necessary, the reclamation obligation in accordance with ASC guidance for asset retirement obligations. Income Taxes Income taxes are computed using the asset and liability method. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial and tax reporting purposes and the effect of net operating losses using enacted tax rates in effect in the years in which the differences are expected to reverse. Deferred tax assets are evaluated to determine if it is more likely than not that they will be realized. Please see Note 5 Earnings Per Share Basic earnings per share is calculated based on the weighted average number of common shares outstanding for the period. Diluted income per share reflects the dilution that could occur if potentially dilutive securities, as determined using the treasury stock method, are converted into common stock. Potentially dilutive securities are excluded from the calculation when their inclusion would be anti-dilutive, such as periods when a net loss is reported or when the exercise price of the instrument exceeds the average fair market value of the underlying common stock. Stock-Based Compensation The Company records stock-based compensation awards exchanged for employee services at fair value on the date of the grant and expenses the awards in the consolidated statements of operations over the requisite employee service period on a straight-line basis over the vesting period. The Company recognizes forfeitures as they occur. The Company's estimates may be impacted by certain variables including, but not limited to, stock price volatility, and related tax impacts. Concentration of Credit Risk The Company has considered and assessed the credit risk resulting from its doré sales arrangements with its customers. In the event that the Company’s relationships with its customers are interrupted for any reason, the Company believes that it would be able to locate another entity to purchase its doré bars; however, any interruption could temporarily disrupt the Company’s sale of its products and adversely affect operating results. The Isabella Pearl Mine in Nevada, U.S.A. accounted for 100% of the Company’s 2021 and 2020 net sales with one customer accounting for 96% of net sales in both 2021 and 2020. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions | |
Related Party Transactions | 2. Related Party Transactions Effective December 31, 2020, in connection with the Spin-Off, the Company entered into a Management Services Agreement (“MSA” or “Agreement”) with GRC that governed the relationship of the parties following the Spin-Off. The MSA provided that the Company received services from GRC and its subsidiaries to assist in the transition of the Company as a separate company including, managerial and technical supervision, advisory and consultation with respect to mining operations, exploration, environmental, safety and sustainability matters. The Company also received certain administrative services related to information technology, accounting and financial advisory services, legal and compliance support and investor relation and shareholder communication services. The agreed upon charges for services rendered were based on market rates that align with the rates that an unaffiliated service provider would charge for similar services. The MSA’s initial term was to expire on December 31, 2021, would automatically renew annually and may be cancelled upon 30 days written notice by one party to the other during the term. On April 21, 2021, GRC provided the Company 30 days written notice to cancel the MSA effective May 21, 2021. During the year ended December 31, 2021, the Company recognized $0.4 million of expense related to the MSA. Prior to the Spin-Off, GRC provided human resources, information technology, accounting, legal, technical, and other services to the Company. The Company obtained its business insurance under GRC. The accompanying Consolidated Statements of Operations, Shareholder’s Equity and Consolidated Statement of Cash Flows for the year ended December 31, 2020, include allocations of all of these expenses. The allocation method calculates the appropriate share of overhead cost to the Company by using time spent by GRC employees. The Company believes the allocation methodology used is reasonable, has been consistently applied, and results in an appropriate allocation of costs incurred. However, these allocations may not be indicative of the cost had the Company been a stand-alone entity or of future services. GRC allocated $2.8 million for the year ended December 31, 2020. These costs were treated as capital contributions from GRC in the accompanying 2020 financial statements. In addition, the Company received cash contributions from GRC to help fund its operations and mine development, which are not expected to be repaid and are treated as capital contributions. For year ended December 31, 2020, the Company received total capital contributions from GRC of $21.8 million inclusive of allocated costs described above. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2021 | |
Revenue | |
Revenue | 3. Revenue The following table presents the Company’s net sales disaggregated by source: Year ended December 31, 2021 2020 (in thousands) Sales, net Gold doré sales $ 82,390 $ 54,264 Less: Refining charges (281) (297) Total sales, net $ 82,109 $ 53,967 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2021 | |
Inventories | |
Inventories | 4. Inventories At December 31, 2021 and December 31, 2020, current inventories consisted of the following: December 31, December 31, 2021 2020 (in thousands) Stockpiles $ 5,839 $ 6,269 Leach pad 31,119 16,636 Doré 434 19 Subtotal - product inventories 37,392 22,924 Materials and supplies 158 127 Total $ 37,550 $ 23,051 In addition to the inventory above, as of December 31, 2021 and December 31, 2020, the Company has $2.6 million and $1.6 million, respectively, of low-grade ore stockpile inventory included in other non-current assets on the accompanying Consolidated Balance Sheets. For the year ended December 31, 2020 the Company recorded $3.6 million in net realizable value (“NRV”) inventory adjustments. No NRV adjustments were recorded in 2021. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Taxes | |
Income Taxes | 5. Income Taxes The Company files a consolidated U.S. income tax return. The Company also files a Nevada net proceeds of minerals tax return and such tax is treated as an income tax for purposes of ASC 740. At the federal level, the Company’s income (loss) in the U.S. is taxed at 21%, while a 5% net proceeds of minerals tax applies in Nevada. For financial reporting purposes, the Company recorded net income before income taxes of $23.5 million and $10.4 million for the years ended December 31, 2021 and 2020, respectively. For the years ended December 31, 2021 and 2020, the Company had $5.2 million and $1.2 million of current tax expense, respectively. As a result of the spinoff from GRC, $(0.1) million and $0.2 million in federal current tax (benefit)/expense resulted in an adjustment to additional paid in capital and did not generate a tax payable in 2021 and 2020, respectively. Year ended December 31, 2021 2020 (in thousands) Current taxes Federal $ 3,000 $ 161 State 2,219 1,001 Total current taxes $ 5,219 $ 1,162 Deferred taxes Federal $ 450 $ (959) State — — Total deferred taxes $ 450 $ (959) Total income and mining taxes $ 5,669 $ 203 The provision for income taxes for the years ended December 31, 2021 and 2020, differs from the amount of income tax determined by applying the applicable United States statutory federal income tax rate to pre-tax income from operations as a result of the following differences: Year ended December 31, 2021 2020 (in thousands) Tax at statutory rates $ 4,943 $ 2,188 Change in valuation allowance — (2,063) Nevada net proceeds of minerals tax, net 1,753 791 Depletion in excess of basis (1,584) (623) Nondeductible Compensation 576 — Other (19) (90) Total income and mining tax expense $ 5,669 $ 203 The following table sets forth deferred tax assets and liabilities: December 31, 2021 2020 (in thousands) Deferred tax assets Property and equipment $ 2,434 1,873 Lease liabilities 97 1,302 Stock compensation 31 — Total deferred tax assets 2,562 3,175 Valuation allowance — — Deferred tax assets after valuation allowance $ 2,562 $ 3,175 Deferred tax liabilities Lease assets $ (97) $ (1,302) Inventory (1,956) (914) Total deferred tax liabilities $ (2,053) $ (2,216) Net deferred tax asset $ 509 $ 959 Other Tax Disclosures The Company evaluates the evidence available to determine whether a valuation allowance is required on the deferred tax assets. The Company removed the valuation allowance on its deferred tax assets in 2020 as a result of significant taxable income in the year and the strong likelihood of utilization of its net deferred tax assets as a result of continuing operations. The Company continues to evaluate the realizability of deferred tax assets. As of both December 31, 2021 and 2020, the Company believes that it has no uncertain tax positions. If the Company were to determine there was an uncertain tax position, the Company would recognize the liability and related interest and penalties within income tax expense. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Dec. 31, 2021 | |
Prepaid Expenses and Other Current Assets | |
Prepaid Expenses and Other Current Assets | 6. Prepaid Expenses and Other Current Assets At December 31, 2021 and December 31, 2020, prepaid expenses and other current assets consisted of the following: December 31, December 31, 2021 2020 (in thousands) Contractor advances $ 1,831 $ 1,670 Prepaid insurance 250 195 Other current assets 147 97 Total $ 2,228 $ 1,962 |
Property, Plant and Mine Develo
Property, Plant and Mine Development, net | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Mine Development, net | |
Property, Plant and Mine Development, net | 7. Property, Plant and Mine Development, net At December 31, 2021 and December 31, 2020, property, plant and mine development consisted of the following: December 31, December 31, 2021 2020 (in thousands) Asset retirement costs $ 4,382 $ 3,588 Construction-in-progress 3,891 195 Furniture and office equipment 410 324 Leach pad and ponds 5,649 5,649 Land 25 13 Light vehicles and other mobile equipment 463 435 Machinery and equipment 15,143 14,311 Mill facilities and infrastructure 7,729 7,669 Mineral interests and mineral rights 18,928 18,878 Mine development 24,365 24,365 Software and licenses 65 65 Subtotal (1) (2) 81,050 75,492 Accumulated depreciation and amortization (43,824) (24,502) Total $ 37,226 $ 50,990 (1) Includes $0.1 million and $1.8 million of assets recorded under finance leases at December 31, 2021 and 2020, respectively. Please see Note 12 for additional information. (2) Includes capital expenditures in accounts payable of $1.1 million and $0.6 at December 31, 2021 and 2020, respectively. For the years ended December 31, 2021 and 2020, the Company recorded depreciation and amortization expense of $14.9 million and $10.4 million, respectively. |
Other Current Liabilities
Other Current Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Other Current Liabilities | |
Other Current Liabilities | 8. Other Current Liabilities At December 31, 2021 and December 31, 2020, other current liabilities consisted of the following: December 31, December 31, 2021 2020 (in thousands) Accrued royalty payments $ 435 $ 718 Accrued property and excise taxes 461 353 Other accrued expenses 16 21 Total $ 912 $ 1,092 |
Asset Retirement Obligation
Asset Retirement Obligation | 12 Months Ended |
Dec. 31, 2021 | |
Asset Retirement Obligation | |
Asset Retirement Obligation | 9. Asset Retirement Obligation The following table presents the changes in the Company’s asset retirement obligation for the years ended December 31, 2021 and 2020: December 31, December 31, 2021 2020 (in thousands) Asset retirement obligation – balance at beginning of period $ 3,844 $ 2,486 Changes in estimate 794 1,159 Payments (220) — Accretion 307 199 Asset retirement obligation – balance at end of period $ 4,725 $ 3,844 As of December 31, 2021 the Company had a $7.5 million off-balance sheet arrangement consisting of a $12.2 million surety bond off-set by a $4.7 million asset retirement for future reclamation obligations for Isabella Pearl. As of December 31, 2020, the Company had a $5.4 million off-balance sheet arrangement consisting of a $9.2 million surety bond off-set by a $3.8 million asset retirement obligation for future reclamation obligations for Isabella Pearl. The Company’s asset retirement obligations were discounted using a credit adjusted risk-free rate of 8%. |
Loans Payable
Loans Payable | 12 Months Ended |
Dec. 31, 2021 | |
Loans Payable | |
Loans Payable | 10. Loans Payable The Company has financed certain equipment purchases on a long-term basis. The loans bear annual interest at rates ranging from 3% to 4.48%, are collateralized by the equipment, and require monthly principal and interest payments of $0.01 million. As of December 31, 2021, and December 31, 2020, there was an outstanding balance of $0.1 million and $0.8 million, respectively. Scheduled remaining minimum repayments are $0.1 million in 2022. The fair value of the loans payable, based on Level 2 inputs, approximated the outstanding balance at both December 31, 2021 and December 31, 2020. See Note 15 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies | |
Commitments and Contingencies | 11. Commitments and Contingencies The Company has a Contract Mining Agreement with a mining contractor relating to mining activities at its Isabella Pearl Mine. Included in this Agreement is an embedded lease for the mining equipment for which the Company has recognized a right-of-use asset and corresponding operating lease liability. Please see Note 12 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases | |
Leases | 12. Leases Operating Leases Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases as incurred over the lease term. For leases beginning in 2019 and later, the Company accounts for lease components (e.g., fixed payments including rent, real estate taxes and insurance costs) separately from the non-lease components (e.g., common-area maintenance costs). The depreciable life of assets are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. The weighted average remaining lease term for the Company’s operating leases as of December 31, 2021 is 0.08 years. The discount rate implicit within the Company’s leases is generally not determinable and therefore the Company determines the discount rate based on its incremental borrowing rate. The incremental borrowing rate for the Company’s leases is determined based on the lease term adjusted for impacts of collateral. The weighted average discount rate used to measure the Company’s operating lease liabilities as of December 31, 2021 was 4.48%. There are no material residual value guarantees and no restrictions or covenants imposed by the Company’s leases. The Company has an embedded lease for its mining equipment in its Contract Mining Agreement for its Isabella Pearl Mine, which was renewed for a three-month period in October 2021 resulting in the recognition of a $1.8 million right-of-use asset and corresponding $1.8 operating lease liability. The Company’s lease payments for its mining equipment are determined by tonnage hauled. The payments, amortization of the right-of-use asset, and interest vary immaterially from forecasted amounts due to variable conditions at the mine. During the year ended December 31, 2021, the Company capitalized variable lease costs of $8.2 million to Inventory and nil to Property, plant, and mine development. During the year ended December 31, 2020, the Company capitalized variable lease costs of $6.4 million to Inventory and $1.5 million to Property, plant, and mine development. Maturities of operating lease liabilities as of December 31, 2021 are as follows (in thousands) Year Ending December 31: 2022 $ 466 Thereafter — Total lease payments 466 Less imputed interest (3) Present value of minimum payments 463 Less: current portion (463) Long-term portion of minimum payments $ — Finance Leases The Company has finance lease agreements for certain equipment. The leases bear annual imputed interest of 4.48% and require monthly principal, interest, and sales tax payments of $0.04 million. The weighted average discount rate for the Company’s finance leases is 4.48%. Scheduled minimum annual payments as of December 31, 2021 are as follows (in thousands) Year Ending December 31: 2022 $ 23 2023 13 2024 4 2025 — Thereafter — Total minimum obligations 40 Less: interest portion (2) Present value of minimum payments 38 Less: current portion (23) Long-term portion of minimum payments $ 15 The weighted average remaining lease term for the Company’s finance leases as of December 31, 2021 is 1.88 years. Supplemental cash flow information related to the Company’s operating and finance leases is as follows for the years ended December 31, 2021 and 2020: Year ended December 31, 2021 2020 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 8,228 $ 6,382 Operating cash flows from finance leases 12 36 Investing cash flows from operating lease — 1,452 Financing cash flows from finance leases 403 439 |
Other Expense, Net
Other Expense, Net | 12 Months Ended |
Dec. 31, 2021 | |
Other Expense, Net | |
Other Expense, Net | 13. Other Expense, Net For the years ended December 31, 2021 and 2020, other expense, net consisted of the following: Year ended December 31, 2021 2020 (in thousands) Interest expense $ 129 $ 143 Charitable contributions 71 100 Other income (10) (10) Total $ 190 $ 233 |
Net Income per Common Share
Net Income per Common Share | 12 Months Ended |
Dec. 31, 2021 | |
Net Income per Common Share | |
Net Income per Common Share | 14. Net Income per Common Share Basic earnings per common share is calculated based on the weighted average number of common shares outstanding for the period. Diluted earnings per common share is calculated based on the assumption that stock options and other dilutive securities outstanding, which have an exercise price less than the average market price of the Company’s common shares during the period, would have been exercised on the later of the beginning of the period or the date granted and that the funds obtained from the exercise were used to purchase common shares at the average market price during the period. The effect of the Company’s dilutive securities is calculated using the treasury stock method and only those instruments that result in a reduction in net income per common share are included in the calculation. As of December 31, 2021, potentially dilutive securities representing 90,000 shares of common stock were excluded from the computation of diluted earnings per share because their effect would have been antidilutive. Basic and diluted net income per common share is calculated as follows: Year ended December 31, 2021 2020 Net income (in thousands) $ 17,866 $ 10,217 Basic weighted average shares of common stock outstanding 23,875,631 21,211,208 Diluted effect of share-based awards 232,734 — Diluted weighted average common shares outstanding 24,108,365 21,211,208 Net income per share: Basic $ 0.75 $ 0.48 Diluted $ 0.74 $ 0.48 |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Measurement | |
Fair Value Measurement | 15. Fair Value Measurement Fair value accounting establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below: Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and Level 3 Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). As required by accounting guidance, assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The following tables set forth certain of the Company’s assets measured at fair value by level within the fair value hierarchy as of December 31, 2021 and December 31, 2020: December 31, December 31, 2021 2020 Input Hierarchy Level (in thousands) Cash and cash equivalents $ 40,017 $ 27,774 Level 1 Accounts receivable 238 145 Level 2 Loans payable $ 117 $ 782 Level 2 The following methods and assumptions were used to estimate the fair value of each class of financial instrument: Cash and cash equivalents consist primarily of cash deposits and are valued at cost, which approximates fair value. Accounts receivable include amounts due to the Company for deliveries of doré sold to customers, which approximates fair value. Loans payable consist of obligations for equipment purchases financed on a long-term basis. Loans payable are recorded at amortized cost, which approximates fair value. See Note 10 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Stock-Based Compensation | |
Stock-Based Compensation | 16. Stock-Based Compensation The Fortitude Gold Corporation 2020 Equity Incentive Plan (the “Incentive Plan”) allows for the issuance of up to 5 million shares of common stock in the form of incentive and non-qualified stock options, stock appreciation rights, restricted stock units, stock grants, and stock units. The Company utilizes this Incentive Plan to attract, retain and incentivize staff. Stock Grants During the year ended December 31, 2021, in conjunction with its staffing process post Spin-Off, the Company issued 2,250,000 shares of its common stock to officers, directors, management and other key personnel. These shares immediately vested and had a weighted average fair value $1.45 per share. No shares were issued during year ended December 31, 2020. Stock Options A summary of stock option activity under the Incentive Plan for the year ended December 31, 2021 is presented below: Shares Weighted Average Exercise Price (per share) Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (thousands) Outstanding as of December 31, 2020 - $ - - $ - Granted 462,000 2.12 - - Forfeited (40,000) 1.00 - - Outstanding as of December 31, 2021 422,000 $ 2.23 4.11 $ 1,852 No options were vested and exercisable as of December 31, 2021. The weighted-average fair value of options per share granted during the year ended December 31, 2021 was $1.24. No stock options were issued during the year ended December 31, 2020. No stock options were exercised during the years ended December 31, 2021 and 2020. The Company utilizes the simplified method to determine expected life because of a lack of sufficient exercise history. The weighted average assumptions used to determine the value of stock-based awards under the Black-Scholes method are summarized below: Year ended December 31, 2021 2020 Risk-free interest rate 0.35 % - % Dividend yield 0.68 % - % Expected volatility 73.88 % - % Expected life in years 3.5 - As of December 31, 2021, there was $0.4 million of total unrecognized expense related to stock options, which is being amortized through 2024. The following table summarizes information about stock options outstanding at December 31, 2021: Outstanding Exercisable Range of Exercise Prices Number of Options Weighted Average Remaining Contractual Term (in years) Weighted Average Exercise Price (per share) Number of Options Weighted Average Exercise Price (per share) $1.00 - $5.48 422,000 4.11 $ 2.23 - $ - 422,000 4.11 $ 2.23 - $ - Stock-Based Compensation Expense Stock-based compensation is included in general and administrative expenses in the accompanying Consolidated Statements of Operations. For the year ended December 31, 2021, the Company recorded $3.4 million of stock-based compensation. For the year ended December 31, 2020, the Company recognized $0.7 million of stock-based compensation expenses allocated from GRC, as described in Note 2 , for options and restricted stock units granted under GRC’s equity incentive plan. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2021 | |
Shareholders' Equity | |
Shareholders' Equity | 17. Shareholder’s Equity On January 11, 2021, the Company completed a private placement sale of 500,000 shares of its common stock at $1.00 per share to 20 individual investors. The shares have a restrictive legend with no registration rights. No commission or finder’s fee was paid in connection with the private placement. During the year ended December 31, 2021, the Company declared and paid dividends of $7.3 million or $0.30 per share. See Note 16 for information concerning shares and options granted pursuant to the Company's Equity Incentive Plan. |
Nature of Operations and Summ_2
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Nature of Operations and Summary of Significant Accounting Policies | |
Basis of Presentation | Basis of Presentation The consolidated financial statements included herein are expressed in United States dollars and conform to United States generally accepted accounting principles (“U.S. GAAP”). The consolidated financial statements include the accounts of the Company, its subsidiaries GRCN, Walker Lane Minerals Corp. (“WLMC”), County Line Holdings, Inc., and County Line Minerals Corp. All significant intercompany balances and transactions have been eliminated. The consolidated balance sheet as of December 31, 2020 and statements of operations, shareholders’ equity and cash flows for the year ended December 31, 2020 have been have been prepared on a “carve-out” basis to include allocations of certain expenses for human resources, accounting, and other services, plus share-based compensation allocated from GRC. The expense allocations have been determined on basis that the Company and GRC consider to be reasonable reflections of the utilization of services, or the benefits provided. In addition, the assets and liabilities include only those assigned to the carve-out entities. The allocations and related estimates and assumptions are described more fully in Note 2 |
Risk and Uncertainties | Risk and Uncertainties As a mining company, the Company’s revenue, profitability and future rate of growth are substantially dependent on prevailing metal prices for gold and to a lesser extent silver. Historically, the commodity markets have been very volatile, and there can be no assurance that commodity prices will not be subject to wide fluctuations in the future. A substantial or extended decline in commodity prices could have a material adverse effect on the Company’s financial position, results of operations, cash flows, access to capital and on the quantities of reserves that the Company can economically produce. The carrying value of the Company’s property, plant and mine development, net; inventories; stockpiles and ore on leach pads; and deferred income tax assets are particularly sensitive to the outlook for the market price for gold. A decline in the price of gold and silver from current levels could result in material impairment charges related to these assets. In addition to changes in gold prices, other factors such as changes in mine plans, increases in costs, geotechnical failures, changes in social, environmental or regulatory requirements, impacts of global events such as the COVID-19 pandemic and management’s decision to reprioritize or abandon a development project can adversely affect the Company’s ability to recover its investment in certain assets and result in impairment charges. During the year ended December 31, 2021, the COVID-19 pandemic has had a material impact on the global economy, the scale and duration of which remain uncertain. The Company remained fully operational during 2021, however, the future impact of this pandemic could include temporary or sustained site closures, significant COVID-19 specific costs, volatility in the prices for gold and other metals, logistical challenges shipping the Company’s products, additional travel restrictions, other supply chain disruptions and workforce interruptions, including loss of life. Depending on the duration and extent of the impact of COVID-19 and the success of a widely available vaccine, this could materially impact the Company’s results of operations, cash flows and financial condition and could result in material impairment charges to the Company’s property, plant and mine development, net; inventories; stockpiles and ore on leach pads; and deferred income tax assets. As the situation continues to evolve, the Company will continue to closely monitor market conditions and respond accordingly. The Company has completed various scenario planning analyses to consider potential impacts of COVID 19 on its business, including volatility in commodity prices, temporary disruptions and/or curtailments of operating activities (voluntary or involuntary). The Company believes that its operations will be sufficient for the foreseeable future, although there is no assurance that will be the case. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. The more significant areas requiring the use of management estimates and assumptions relate to mineral reserves that are the basis for future cash flow estimates utilized in impairment calculations and units-of-production depreciation calculations; future metal prices; environmental remediation, reclamation and closure obligations; estimates of recoverable gold and other minerals in stockpile and leach pad inventories; estimates of fair value related to asset impairment assessments; write-downs of inventory, stockpiles and ore on leach pads to net realizable value; valuation allowances for deferred tax assets; provisional amounts related to income tax effects of newly enacted tax laws. Management routinely makes judgments and estimates about the effects of matters that are inherently uncertain and bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances. Actual results could differ from these estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of all cash balances and highly liquid investments with a remaining maturity of three months or less when purchased and are carried at cost. |
Accounts receivable | Accounts receivable Accounts receivable consists of trade receivables, which are recorded from the sale of doré. |
Inventories | Inventories The major inventory categories are set forth below: Stockpile Inventories : Note 4 Doré Inventory: Leach Pad: Estimates of recoverable ore on the leach pad are calculated from the quantities of ore placed on the leach pad (measured tonnes added to the leach pad), the grade of ore placed on the leach pad (based on assay data) and a recovery percentage (based on ore type). Although the quantities of recoverable ore placed on the leach pad are reconciled by comparing the grades of ore placed on pads to the quantities of metal actually recovered (metallurgical balancing), the nature of the leaching process inherently limits the ability to precisely monitor inventory levels. As a result, the metallurgical balancing process is constantly monitored and estimates are refined based on actual results over time. Changes in assumptions and estimates are accounted for on a prospective basis. Materials and Supplies Inventories Write-downs of inventory are charged to expense. |
Property, Plant and Mine Development | Property, Plant and Mine Development Land and Mineral Rights : Mine Development : Drilling costs incurred during the production phase for operational ore control are allocated to inventory costs and then included as a component of production costs. All other drilling and related costs are expensed as incurred. Mine development costs are amortized using the UOP method based on estimated recoverable ounces in proven and probable reserves. The cost of removing overburden and waste materials to access the ore body at an open pit mine prior to the production phase are referred to as “pre-stripping costs”. Pre-stripping costs are capitalized during the development of an open pit mine. Where multiple open pits exist at a mining complex utilizing common processing facilities, pre-stripping costs are capitalized at each pit. The removal, production, and sale of deminimis saleable materials may occur during the development phase of an open pit mine and are assigned incremental mining costs related to the removal of that material. The production phase of an open pit mine commences when saleable minerals, beyond a de minimis amount, are produced. Stripping costs incurred during the production phase of a mine are variable production costs that are included as a component of inventory to be recognized in costs applicable to sales in the same period as the revenue from the sale of inventory. Property and Equipment Construction in Progress Depreciation and Amortization Range of Lives Asset retirement costs UOP Furniture, computer and office equipment 3 to 4 years Light vehicles and other mobile equipment 4 years Machinery and equipment UOP to 4 years Plant facilities, leach pad, and related infrastructure UOP to 7 years Mine development and mineral interests UOP |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company evaluates its long-lived assets for impairment when events or changes in circumstances indicate that the related carrying amounts may not be recoverable. Asset impairment is considered to exist if the total estimated future cash flows on an undiscounted basis are less than the carrying amount of the asset. If an impairment is indicated, a determination is made whether an impairment has occurred and any impairment losses are measured as the excess of carrying value over the total discounted estimated future cash flows, or the application of an expected fair value technique in the absence of an observable market price and are charged to expense on the Company’s consolidated statements of operations. In estimating future cash flows, assets are grouped at the lowest level for which there are identifiable cash flows that are largely independent of future cash flows from other asset groups. Existing reserves and other mineralized material are included when estimating the fair value in determining whether the assets are impaired. The Company’s estimates of future cash flows are based on numerous assumptions including expected gold and other commodity prices, production levels, capital requirements and estimated salvage values. It is possible that actual future cash flows will be significantly different than the estimates, as actual future quantities of recoverable minerals, gold and other commodity prices, production levels and costs and capital requirements are each subject to significant risks and uncertainties. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The recorded amounts of cash and cash equivalents, accounts payable, and loans payable approximate fair value because of the short maturity of those instruments. |
Revenue Recognition | Revenue Recognition Gold doré sales are recognized upon the satisfaction of performance obligations, which occurs when price and quantity are agreed upon with the customer. Silver doré sales are immaterial. Doré sales are recorded using quoted metal prices, net of refining charges. |
Production Costs | Production Costs Production costs include labor and benefits, royalties, and doré shipping costs, mining subcontractors, fuel and lubricants, legal and professional fees related to mine operations, materials and supplies, repairs and maintenance, explosives, insurance, reagents, travel, medical services, security equipment, office rent, tools, and other costs that support mining operations. |
Exploration Costs | Exploration Costs Exploration costs are charged to expense as incurred. Costs to identify new mineral resources and to evaluate potential resources are considered exploration costs. |
Asset Retirement Obligation | Asset Retirement Obligation An asset retirement obligation is recognized when incurred and is recorded as a liability at fair value. The liability is accreted over time through periodic charges to earnings. In addition, the asset retirement cost is capitalized as part of the asset’s carrying value and amortized over the life of the related asset. Asset retirement costs are periodically adjusted to reflect changes in the estimated present value resulting from the passage of time and revisions to the estimates of either the timing or amount of the reclamation costs. The estimated asset retirement obligation is based on when spending for an existing disturbance is expected to occur. The Company reviews, on an annual basis, unless otherwise deemed necessary, the reclamation obligation in accordance with ASC guidance for asset retirement obligations. |
Income Taxes | Income Taxes Income taxes are computed using the asset and liability method. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial and tax reporting purposes and the effect of net operating losses using enacted tax rates in effect in the years in which the differences are expected to reverse. Deferred tax assets are evaluated to determine if it is more likely than not that they will be realized. Please see Note 5 |
Earnings Per Share | Earnings Per Share Basic earnings per share is calculated based on the weighted average number of common shares outstanding for the period. Diluted income per share reflects the dilution that could occur if potentially dilutive securities, as determined using the treasury stock method, are converted into common stock. Potentially dilutive securities are excluded from the calculation when their inclusion would be anti-dilutive, such as periods when a net loss is reported or when the exercise price of the instrument exceeds the average fair market value of the underlying common stock. |
Stock-Based Compensation | Stock-Based Compensation The Company records stock-based compensation awards exchanged for employee services at fair value on the date of the grant and expenses the awards in the consolidated statements of operations over the requisite employee service period on a straight-line basis over the vesting period. The Company recognizes forfeitures as they occur. The Company's estimates may be impacted by certain variables including, but not limited to, stock price volatility, and related tax impacts. |
Concentration of Credit Risk | Concentration of Credit Risk The Company has considered and assessed the credit risk resulting from its doré sales arrangements with its customers. In the event that the Company’s relationships with its customers are interrupted for any reason, the Company believes that it would be able to locate another entity to purchase its doré bars; however, any interruption could temporarily disrupt the Company’s sale of its products and adversely affect operating results. The Isabella Pearl Mine in Nevada, U.S.A. accounted for 100% of the Company’s 2021 and 2020 net sales with one customer accounting for 96% of net sales in both 2021 and 2020. |
Nature of Operations and Summ_3
Nature of Operations and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Nature of Operations and Summary of Significant Accounting Policies | |
Schedule of useful lives of depreciable assets | Range of Lives Asset retirement costs UOP Furniture, computer and office equipment 3 to 4 years Light vehicles and other mobile equipment 4 years Machinery and equipment UOP to 4 years Plant facilities, leach pad, and related infrastructure UOP to 7 years Mine development and mineral interests UOP |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue | |
Schedule of company's net sales disaggregated by source | Year ended December 31, 2021 2020 (in thousands) Sales, net Gold doré sales $ 82,390 $ 54,264 Less: Refining charges (281) (297) Total sales, net $ 82,109 $ 53,967 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventories | |
Schedule of current inventories | December 31, December 31, 2021 2020 (in thousands) Stockpiles $ 5,839 $ 6,269 Leach pad 31,119 16,636 Doré 434 19 Subtotal - product inventories 37,392 22,924 Materials and supplies 158 127 Total $ 37,550 $ 23,051 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Taxes | |
Schedule of components of income tax expenses | Year ended December 31, 2021 2020 (in thousands) Current taxes Federal $ 3,000 $ 161 State 2,219 1,001 Total current taxes $ 5,219 $ 1,162 Deferred taxes Federal $ 450 $ (959) State — — Total deferred taxes $ 450 $ (959) Total income and mining taxes $ 5,669 $ 203 |
Schedule of income tax determined by applying statutory income tax rate to pre-tax income from operations | Year ended December 31, 2021 2020 (in thousands) Tax at statutory rates $ 4,943 $ 2,188 Change in valuation allowance — (2,063) Nevada net proceeds of minerals tax, net 1,753 791 Depletion in excess of basis (1,584) (623) Nondeductible Compensation 576 — Other (19) (90) Total income and mining tax expense $ 5,669 $ 203 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | December 31, 2021 2020 (in thousands) Deferred tax assets Property and equipment $ 2,434 1,873 Lease liabilities 97 1,302 Stock compensation 31 — Total deferred tax assets 2,562 3,175 Valuation allowance — — Deferred tax assets after valuation allowance $ 2,562 $ 3,175 Deferred tax liabilities Lease assets $ (97) $ (1,302) Inventory (1,956) (914) Total deferred tax liabilities $ (2,053) $ (2,216) Net deferred tax asset $ 509 $ 959 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Prepaid Expenses and Other Current Assets | |
Schedule of prepaid expenses and other current assets | December 31, December 31, 2021 2020 (in thousands) Contractor advances $ 1,831 $ 1,670 Prepaid insurance 250 195 Other current assets 147 97 Total $ 2,228 $ 1,962 |
Property, Plant and Mine Deve_2
Property, Plant and Mine Development, net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Mine Development, net | |
Schedule of property, plant and mine development | December 31, December 31, 2021 2020 (in thousands) Asset retirement costs $ 4,382 $ 3,588 Construction-in-progress 3,891 195 Furniture and office equipment 410 324 Leach pad and ponds 5,649 5,649 Land 25 13 Light vehicles and other mobile equipment 463 435 Machinery and equipment 15,143 14,311 Mill facilities and infrastructure 7,729 7,669 Mineral interests and mineral rights 18,928 18,878 Mine development 24,365 24,365 Software and licenses 65 65 Subtotal (1) (2) 81,050 75,492 Accumulated depreciation and amortization (43,824) (24,502) Total $ 37,226 $ 50,990 (1) Includes $0.1 million and $1.8 million of assets recorded under finance leases at December 31, 2021 and 2020, respectively. Please see Note 12 for additional information. (2) Includes capital expenditures in accounts payable of $1.1 million and $0.6 at December 31, 2021 and 2020, respectively. |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Current Liabilities | |
Schedule of other current liabilities | December 31, December 31, 2021 2020 (in thousands) Accrued royalty payments $ 435 $ 718 Accrued property and excise taxes 461 353 Other accrued expenses 16 21 Total $ 912 $ 1,092 |
Asset Retirement Obligation (Ta
Asset Retirement Obligation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Asset Retirement Obligation | |
Schedule of asset retirement obligation | December 31, December 31, 2021 2020 (in thousands) Asset retirement obligation – balance at beginning of period $ 3,844 $ 2,486 Changes in estimate 794 1,159 Payments (220) — Accretion 307 199 Asset retirement obligation – balance at end of period $ 4,725 $ 3,844 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases | |
Schedule of operating lease maturities | Maturities of operating lease liabilities as of December 31, 2021 are as follows (in thousands) Year Ending December 31: 2022 $ 466 Thereafter — Total lease payments 466 Less imputed interest (3) Present value of minimum payments 463 Less: current portion (463) Long-term portion of minimum payments $ — |
Schedule of finance lease maturities | Year Ending December 31: 2022 $ 23 2023 13 2024 4 2025 — Thereafter — Total minimum obligations 40 Less: interest portion (2) Present value of minimum payments 38 Less: current portion (23) Long-term portion of minimum payments $ 15 |
Schedule of supplemental cash flow information of leases. | Year ended December 31, 2021 2020 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 8,228 $ 6,382 Operating cash flows from finance leases 12 36 Investing cash flows from operating lease — 1,452 Financing cash flows from finance leases 403 439 |
Other Expense, Net (Tables)
Other Expense, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Expense, Net | |
Schedule of other expense, net | Year ended December 31, 2021 2020 (in thousands) Interest expense $ 129 $ 143 Charitable contributions 71 100 Other income (10) (10) Total $ 190 $ 233 |
Net Income per Common Share (Ta
Net Income per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Net Income per Common Share | |
Schedule of basic and diluted net income per common share | Year ended December 31, 2021 2020 Net income (in thousands) $ 17,866 $ 10,217 Basic weighted average shares of common stock outstanding 23,875,631 21,211,208 Diluted effect of share-based awards 232,734 — Diluted weighted average common shares outstanding 24,108,365 21,211,208 Net income per share: Basic $ 0.75 $ 0.48 Diluted $ 0.74 $ 0.48 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Measurement | |
Schedule of assets and liabilities measured at fair value | December 31, December 31, 2021 2020 Input Hierarchy Level (in thousands) Cash and cash equivalents $ 40,017 $ 27,774 Level 1 Accounts receivable 238 145 Level 2 Loans payable $ 117 $ 782 Level 2 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Stock-Based Compensation | |
Summary of stock option activity | Shares Weighted Average Exercise Price (per share) Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (thousands) Outstanding as of December 31, 2020 - $ - - $ - Granted 462,000 2.12 - - Forfeited (40,000) 1.00 - - Outstanding as of December 31, 2021 422,000 $ 2.23 4.11 $ 1,852 |
Schedule of weighted average assumptions | Year ended December 31, 2021 2020 Risk-free interest rate 0.35 % - % Dividend yield 0.68 % - % Expected volatility 73.88 % - % Expected life in years 3.5 - |
Summary of stock options outstanding | The following table summarizes information about stock options outstanding at December 31, 2021: Outstanding Exercisable Range of Exercise Prices Number of Options Weighted Average Remaining Contractual Term (in years) Weighted Average Exercise Price (per share) Number of Options Weighted Average Exercise Price (per share) $1.00 - $5.48 422,000 4.11 $ 2.23 - $ - 422,000 4.11 $ 2.23 - $ - |
Nature of Operations and Summ_4
Nature of Operations and Summary of Significant Accounting Policies - Nature of Operations (Details) | Dec. 28, 2020 | Dec. 31, 2021 shares | Dec. 31, 2020 shares | Aug. 18, 2020 shares |
Gold Resource Corporation | ||||
Basis of Presentation | ||||
Stock split, conversion ratio | 3.5 | |||
Common shares | ||||
Basis of Presentation | ||||
Shares, Outstanding | 23,961,208 | 21,211,208 | ||
Common shares | GRC Neveda | ||||
Basis of Presentation | ||||
Shares, Outstanding | 10,000 | |||
Common shares | Fortitude | ||||
Basis of Presentation | ||||
Shares, Outstanding | 21,211,208 |
Nature of Operations and Summ_5
Nature of Operations and Summary of Significant Accounting Policies - Useful lives of depreciable assets (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Light vehicles and other mobile equipment | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 4 years |
Minimum | Furniture and office equipment | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 3 years |
Maximum | Furniture and office equipment | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 4 years |
Maximum | Machinery and equipment | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 4 years |
Maximum | Plant facilities, leach pad, and related infrastructure | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 7 years |
Nature of Operations and Summ_6
Nature of Operations and Summary of Significant Accounting Policies - Concentration of Credit Risk (Details) - Customer concentration risk - Sales - customer | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Isabella Pearl Mine | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 100% | 100% |
One Customer [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 96% | 96% |
Number of customers | 1 | 1 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transactions | ||
Capital contributions from GRC | $ 21,711 | |
Gold Resource Corporation | ||
Related Party Transactions | ||
Service agreement cancellation term | 30 days | |
Expenses recognized | $ 400 | |
Allocation of costs | 2,800 | |
Capital contributions from GRC | $ 21,800 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue | ||
Less: Refining charges | $ (281) | $ (297) |
Sales, net | 82,109 | 53,967 |
Gold dore | ||
Revenue | ||
Sales, net | $ 82,390 | $ 54,264 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Inventories | ||
Stockpiles | $ 5,839 | $ 6,269 |
Leach pad | 31,119 | 16,636 |
Dore | 434 | 19 |
Subtotal - product inventories | 37,392 | 22,924 |
Materials and supplies | 158 | 127 |
Total | 37,550 | 23,051 |
Low-grade ore stockpile | 2,600 | 1,600 |
Net realizable value inventory adjustments | $ 0 | $ 3,600 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes | ||
Federal tax rate | 21% | |
Minerals tax rate | 5% | |
Current tax expense | $ 5,219,000 | $ 1,162,000 |
Federal current tax (benefit)/expense resulted in an adjustment to additional paid in capital | (100,000) | 200,000 |
Mining and income tax expense | 5,669,000 | 203,000 |
Uncertain tax positions | $ 0 | $ 0 |
Income Taxes - Components of in
Income Taxes - Components of income tax (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Current taxes | ||
Federal | $ 3,000 | $ 161 |
State | 2,219 | 1,001 |
Total current taxes | 5,219 | 1,162 |
Deferred taxes | ||
Federal | 450 | (959) |
Total deferred taxes | 450 | (959) |
Total income and mining taxes | $ 5,669 | $ 203 |
Income Taxes - Statutory federa
Income Taxes - Statutory federal income tax rate (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||
Tax at statutory rates | $ 4,943 | $ 2,188 |
Change in valuation allowance | (2,063) | |
Nevada net proceeds of minerals tax, net | 1,753 | 791 |
Depletion in excess of basis | (1,584) | (623) |
Nondeductible Compensation | 576 | |
Other | $ (19) | $ (90) |
Income Taxes - Net Deferred tax
Income Taxes - Net Deferred tax asset (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets | ||
Property and equipment | $ 2,434 | $ 1,873 |
Lease liabilities | 97 | 1,302 |
Stock compensation | 31 | |
Total deferred tax assets | 2,562 | 3,175 |
Deferred tax assets after valuation allowance | 2,562 | 3,175 |
Deferred tax liabilities | ||
Lease assets | (97) | (1,302) |
Inventory | (1,956) | (914) |
Total deferred tax liabilities | (2,053) | (2,216) |
Net deferred tax asset | $ 509 | $ 959 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Prepaid Expenses and Other Current Assets | ||
Contractor advances | $ 1,831 | $ 1,670 |
Prepaid insurance | 250 | 195 |
Other current assets | 147 | 97 |
Total | $ 2,228 | $ 1,962 |
Property, Plant and Mine Deve_3
Property, Plant and Mine Development, net (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Mine Development, net | ||
Subtotal | $ 81,050 | $ 75,492 |
Accumulated depreciation and amortization | (43,824) | (24,502) |
Total | 37,226 | 50,990 |
Right of use Asset | $ 100 | $ 1,800 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Total | Total |
Capital expenditures included in accounts payable | $ 1,100 | $ 600 |
Depreciation and amortization | 14,859 | 10,377 |
Asset retirement costs | ||
Property, Plant and Mine Development, net | ||
Subtotal | 4,382 | 3,588 |
Construction-in-progress | ||
Property, Plant and Mine Development, net | ||
Subtotal | 3,891 | 195 |
Furniture and office equipment | ||
Property, Plant and Mine Development, net | ||
Subtotal | 410 | 324 |
Leach pad and ponds | ||
Property, Plant and Mine Development, net | ||
Subtotal | 5,649 | 5,649 |
Land | ||
Property, Plant and Mine Development, net | ||
Subtotal | 25 | 13 |
Light vehicles and other mobile equipment | ||
Property, Plant and Mine Development, net | ||
Subtotal | 463 | 435 |
Machinery and equipment | ||
Property, Plant and Mine Development, net | ||
Subtotal | 15,143 | 14,311 |
Mill facilities and infrastructure | ||
Property, Plant and Mine Development, net | ||
Subtotal | 7,729 | 7,669 |
Mineral interests and mineral rights | ||
Property, Plant and Mine Development, net | ||
Subtotal | 18,928 | 18,878 |
Mine development | ||
Property, Plant and Mine Development, net | ||
Subtotal | 24,365 | 24,365 |
Software and licenses | ||
Property, Plant and Mine Development, net | ||
Subtotal | $ 65 | $ 65 |
Other Current Liabilities (Deta
Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Other Current Liabilities | ||
Accrued royalty payments | $ 435 | $ 718 |
Accrued property and excise taxes | 461 | 353 |
Other accrued expenses | 16 | 21 |
Total | $ 912 | $ 1,092 |
Asset Retirement Obligation (De
Asset Retirement Obligation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Asset retirement obligation - balance at beginning of period | $ 3,844 | $ 2,486 |
Changes in estimate | 794 | 1,159 |
Payments | (220) | |
Accretion | 307 | 199 |
Asset retirement obligation - balance at end of period | $ 4,725 | 3,844 |
Risk-free rate | 8% | |
Nevada Project | ||
Off-balance sheet arrangement | $ 7,500 | 5,400 |
Surety bond | $ 12,200 | $ 9,200 |
Loans Payable (Details)
Loans Payable (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Loans Payable | ||
Periodic payment | $ 10 | |
Outstanding balance | 100 | $ 800 |
2022 | $ 100 | |
Maximum | ||
Loans Payable | ||
Interest Rate | 4.48% | |
Minimum | ||
Loans Payable | ||
Interest Rate | 3% |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Dec. 31, 2021 USD ($) |
Commitments and Contingencies | |
Contractual payments remaining as on date | $ 0.6 |
Leases - Operating Leases (Deta
Leases - Operating Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Oct. 31, 2021 | |
Leases | |||
Operating lease weighted average lease term | 29 days | ||
Discount rate | 4.48% | ||
Residual value guarantee | false | ||
Renewal Term | 3 months | ||
Right-of-use asset | $ 463 | $ 6,198 | $ 1,800 |
Operating lease liability | 463 | 1,800 | |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |||
2022 | 466 | ||
Total lease payments | 466 | ||
Less imputed interest | (3) | ||
Present value of minimum payments | 463 | $ 1,800 | |
Less: current portion | (463) | (6,198) | |
Inventory | |||
Leases | |||
Lease costs capitalized | 8,200 | 6,400 | |
Property, Plant and Equipment | |||
Leases | |||
Lease costs capitalized | $ 0 | $ 1,500 |
Leases - Finance Leases (Detail
Leases - Finance Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases | ||
Finance lease discount rate | 4.48% | |
Monthly tax payments | $ 40 | |
Finance lease weighted average discount rate | 4.48% | |
Finance lease weighted average lease term | 1 year 10 months 17 days | |
Finance Lease, Liability, Payment, Due [Abstract] | ||
2022 | $ 23 | |
2023 | 13 | |
2024 | 4 | |
Total minimum obligations | 40 | |
Less: interest portion | (2) | |
Present value of minimum payments | 38 | |
Less: current portion | $ (23) | $ (398) |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases | ||
Operating cash flows from operating leases | $ 8,228 | $ 6,382 |
Operating cash flows from finance leases | $ 12 | 36 |
Investing cash flows from operating lease | $ 1,452 |
Other Expense, Net (Details)
Other Expense, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Other Expense, Net | ||
Interest expense | $ 129 | $ 143 |
Charitable contributions | 71 | 100 |
Other income | (10) | (10) |
Other expense, net | $ 190 | $ 233 |
Net Income per Common Share (De
Net Income per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Net Income per Common Share | ||
Net income | $ 17,866 | $ 10,217 |
Basic weighted average shares of common stock outstanding | 23,875,631 | 21,211,208 |
Diluted effect of share-based awards | 232,734 | |
Diluted weighted average common shares outstanding | 24,108,365 | 21,211,208 |
Net income per share: | ||
Basic | $ 0.75 | $ 0.48 |
Diluted | $ 0.74 | $ 0.48 |
Anti-dilutive instruments outstanding | 90,000 |
Fair Value Measurement (Details
Fair Value Measurement (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Level 1 | ||
Fair Value Measurement | ||
Cash and cash equivalents | $ 40,017 | $ 27,774 |
Level 2 | ||
Fair Value Measurement | ||
Accounts receivable | 238 | 145 |
Loans payable | $ 117 | $ 782 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Stock-Based Compensation | ||
Stock-based compensation | $ 3,405 | |
Gold Resource Corp [Member] | ||
Stock-Based Compensation | ||
Share based compensation expense recognized | $ 700 | |
Employee stock options | ||
Stock-Based Compensation | ||
Stock options exercised (in shares) | 0 | 0 |
Incentive Plan | ||
Stock-Based Compensation | ||
Stock-based compensation (in shares) | 2,250,000 | 0 |
Vesting share price | $ 1.45 | |
Incentive Plan | Employee stock options | ||
Stock-Based Compensation | ||
Options granted | 462,000 | 0 |
Incentive Plan | Maximum | ||
Stock-Based Compensation | ||
Shares available for issuance | 5,000,000 |
Stock-Based Compensation - Opti
Stock-Based Compensation - Option activity (Details) - Employee stock options - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Additional Disclosures | ||
Weighted-average fair value of options per share | $ 1.24 | |
Stock options exercised (in shares) | 0 | 0 |
Unrecognized expense | $ 400 | |
Incentive Plan | ||
Shares | ||
Granted (in shares) | 462,000 | 0 |
Forfeited (in shares) | (40,000) | |
Outstanding as at end of period (in shares) | 422,000 | |
Weighted Average Exercise Price (per share) | ||
Granted (in dollars per share) | $ 2.12 | |
Forfeited (in dollars per share) | 1 | |
Outstanding at end of period (in dollars per share) | $ 2.23 | |
Additional Disclosures | ||
Weighted Average Remaining Contractual Term (in years) | 4 years 1 month 9 days | |
Aggregate Intrinsic Value | $ 1,852 | |
Options vested and exercisable (in shares) | 0 |
Stock-Based Compensation - Assu
Stock-Based Compensation - Assumptions (Details) - Employee stock options | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |
Risk free rate | 0.35% |
Dividend rate | 0.68% |
Expected volatility | 73.88% |
Expected Term | 3 years 6 months |
Stock-Based Compensation - Op_2
Stock-Based Compensation - Options outstanding (Details) - Employee stock options | 12 Months Ended |
Dec. 31, 2021 $ / shares shares | |
Stock-Based Compensation | |
Number of Options, Outstanding | shares | 422,000 |
Weighted Average Remaining Contractual Term, Outstanding (in years) | 4 years 1 month 9 days |
Weighted Average Exercise Price, Outstanding (per share) | $ 2.23 |
$1.00 - $5.48 | |
Stock-Based Compensation | |
Range of Exercise Prices, Lower limit | 1 |
Range of Exercise Prices, Upper limit | $ 5.48 |
Number of Options, Outstanding | shares | 422,000 |
Weighted Average Remaining Contractual Term, Outstanding (in years) | 4 years 1 month 9 days |
Weighted Average Exercise Price, Outstanding (per share) | $ 2.23 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) | 12 Months Ended | |
Jan. 11, 2021 USD ($) individual $ / shares shares | Dec. 31, 2021 USD ($) $ / shares | |
Dividends | $ | $ 7,308,000 | |
Dividend per share | $ / shares | $ 0.30 | |
Private Placement [Member] | ||
Number of shares in private placement | shares | 500,000 | |
Sale of Stock, Price Per Share | $ / shares | $ 1 | |
Number Of Investors | individual | 20 | |
Commissions and finders fee | $ | $ 0 |