Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 03, 2014 | Jun. 28, 2013 | |
Document and Entity Information | ' | ' | ' |
Entity Registrant Name | 'McEwen Mining Inc. | ' | ' |
Entity Central Index Key | '0000314203 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $374,960,500 |
Entity Common Stock, Shares Outstanding | ' | 265,176,527 | ' |
Exchangeable Common Stock, Shares Outstanding | ' | 31,982,832 | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
REVENUE: | ' | ' | ' |
Gold and silver sales | $45,982 | $5,966 | ' |
Total Revenue | 45,982 | 5,966 | ' |
COSTS AND EXPENSES: | ' | ' | ' |
Production costs applicable to sales | 34,594 | 3,861 | ' |
Mine operating costs | ' | 8,507 | ' |
Mine construction costs | 1,383 | 14,260 | 1,745 |
Mine development costs | 847 | ' | ' |
Exploration costs | 24,829 | 47,179 | 42,983 |
Property holding costs | 4,584 | 7,207 | 3,464 |
General and administrative | 14,001 | 16,841 | 7,035 |
Acquisition costs | ' | 1,513 | 3,893 |
Depreciation | 942 | 1,033 | 577 |
Accretion of asset retirement obligation (note 6) | 461 | 447 | 524 |
Income on investment in Minera Santa Cruz S.A., net of amortization (note 7) | -846 | -20,835 | ' |
Impairment of investment in Minera Santa Cruz S.A. (note 7) | 95,878 | ' | ' |
Impairment of mineral property interests and property and equipment (note 8) | 62,963 | 18,468 | ' |
Loss (gain) on sale of assets (notes 6 and 8) | 6,743 | -1,110 | -36 |
Total costs and expenses | 246,379 | 97,371 | 60,185 |
Operating loss | -200,397 | -91,405 | -60,185 |
OTHER INCOME (EXPENSE): | ' | ' | ' |
Interest income | 262 | 228 | 202 |
Gain (loss) on litigation settlement (notes 10 and 17)) | 560 | -3,830 | ' |
(Loss) gain on sale of marketable equity securities | ' | -70 | 19 |
(Loss) gain on sale of gold and silver bullion (note 4) | -223 | 3,075 | 2,075 |
Unrealized loss on gold and silver bullion (note 4) | ' | -359 | -3,394 |
Other-than-temporary impairment on marketable equity securities | ' | -1,993 | ' |
Foreign currency (loss) gain | -1,309 | 456 | -769 |
Total other income (expense) | -710 | -2,493 | -1,867 |
Loss before income taxes | -201,107 | -93,898 | -62,052 |
Recovery of income taxes (note 9) | 53,365 | 27,244 | 180 |
Net loss | -147,742 | -66,654 | -61,872 |
OTHER COMPREHENSIVE INCOME (LOSS): | ' | ' | ' |
Reclassification of unrealized gain on marketable securities disposed of during the period, net of taxes | ' | 1,000 | ' |
Unrealized loss on available-for-sale securities, net of taxes | -1 | -5 | -1,546 |
Comprehensive loss | ($147,743) | ($65,659) | ($63,418) |
Net loss per share (note 12): | ' | ' | ' |
Basic (in dollars per share) | ($0.50) | ($0.26) | ($0.42) |
Diluted (in dollars per share) | ($0.50) | ($0.26) | ($0.42) |
Weighted average common shares outstanding (thousands) (note 13): | ' | ' | ' |
Basic (in shares) | 297,041 | 261,223 | 147,692 |
Diluted (in shares) | 297,041 | 261,223 | 147,692 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $24,321 | $70,921 |
Investment in gold and silver bullion (market value: 2013 - nil; 2012 - $2,062) (note 4) | ' | 1,690 |
IVA taxes receivable | 11,591 | 9,150 |
Inventories (note 5) | 8,800 | 7,262 |
Other current assets | 2,059 | 2,895 |
Total current assets | 46,771 | 91,918 |
Mineral property interests (note 6) | 642,968 | 767,067 |
Restrictive time deposits for reclamation bonding (note 6) | 5,183 | 5,183 |
Investment in Minera Santa Cruz S.A. (note 7) | 212,947 | 273,948 |
Property and equipment, net (note 8) | 15,143 | 12,767 |
Other assets | 54 | 54 |
TOTAL ASSETS | 923,066 | 1,150,937 |
Current liabilities: | ' | ' |
Accounts payable and accrued liabilities | 9,797 | 21,235 |
Litigation settlement liability (notes 10 and 17) | ' | 3,830 |
Current portion of asset retirement obligation (note 6) | 1,392 | 130 |
Total current liabilities | 11,189 | 25,195 |
Asset retirement obligation, less current portion (note 6) | 5,855 | 6,229 |
Deferred income tax liability (notes 3 and 9) | 158,855 | 229,522 |
Other liabilities | 400 | 400 |
Total liabilities | 176,299 | 261,346 |
Shareholders' equity: | ' | ' |
Common stock, no par value, 500,000 shares authorized; Common: 264,913 shares as of December 31, 2013 and 212,646 shares as of December 31, 2012 issued and outstanding Exchangeable: 32,246 shares as of December 31, 2013 and 83,379 shares as of December 31, 2012 issued and outstanding | 1,354,696 | 1,349,777 |
Accumulated deficit | -607,634 | -459,892 |
Accumulated other comprehensive loss | -295 | -294 |
Total shareholders' equity | 746,767 | 889,591 |
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY | $923,066 | $1,150,937 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
CONSOLIDATED BALANCE SHEETS | ' | ' |
Gold and silver bullion, market value (in dollars) | ' | $2,062 |
Common stock, par value | ' | ' |
Common stock, shares authorized | 500,000 | 500,000 |
Common, shares issued | 264,913 | 212,646 |
Common, shares outstanding | 264,913 | 212,646 |
Exchangeable, shares issued | 32,246 | 83,379 |
Exchangeable, shares outstanding | 32,246 | 83,379 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (USD $) | Total | Common Stock | Accumulated Other Comprehensive (Loss) Income | Accumulated Deficit |
In Thousands, except Share data, unless otherwise specified | ||||
Balance at Dec. 31, 2010 | $173,280 | $504,389 | $257 | ($331,366) |
Balance (in shares) at Dec. 31, 2010 | ' | 122,186,000 | ' | ' |
Increase (Decrease) in Shareholders' Equity | ' | ' | ' | ' |
Stock-based compensation | 2,671 | 2,671 | ' | ' |
Sale of shares for cash, net of issuance costs | 105,415 | 105,415 | ' | ' |
Sale of shares for cash, net of issuance costs (in shares) | ' | 17,250,000 | ' | ' |
Exercise of stock options | 412 | 412 | ' | ' |
Exercise of stock options (in shares) | 163,000 | 163,000 | ' | ' |
Exercise of stock options assumed from Minera Andes Inc. acquisition | 361 | 361 | ' | ' |
Exercise of stock options assumed from Minera Andes Inc. acquisition (in shares) | ' | 70,000 | ' | ' |
Shares issued for Mexico mining concessions | 583 | 583 | ' | ' |
Shares issued for Mexico mining concessions (in shares) | ' | 84,000 | ' | ' |
Unrealized (loss) gain on available-for-sale securities, net of taxes | -1,546 | ' | -1,546 | ' |
Net loss | -61,872 | ' | ' | -61,872 |
Balance at Dec. 31, 2011 | 219,304 | 613,831 | -1,289 | -393,238 |
Balance (in shares) at Dec. 31, 2011 | ' | 139,753,000 | ' | ' |
Increase (Decrease) in Shareholders' Equity | ' | ' | ' | ' |
Stock-based compensation | 3,405 | 3,405 | ' | ' |
Issuance of exchangeable shares to acquire Minera Andes Inc. | 664,671 | 664,671 | ' | ' |
Issuance of exchangeable shares to acquire Minera Andes Inc. (in shares) | ' | 127,331,000 | ' | ' |
Assumption of stock options in connection with the acquisition of Minera Andes Inc. | 3,175 | 3,175 | ' | ' |
Sale of shares for cash, net of issuance costs | 43,047 | 43,047 | ' | ' |
Sale of shares for cash, net of issuance costs (in shares) | ' | 19,552,000 | ' | ' |
Sale of exchangeable shares for cash, net of issuance costs | 17,372 | 17,372 | ' | ' |
Sale of exchangeable shares for cash, net of issuance costs (in shares) | ' | 7,799,000 | ' | ' |
Exercise of stock options | 819 | 819 | ' | ' |
Exercise of stock options (in shares) | 445,000 | 445,000 | ' | ' |
Exercise of stock options assumed from Minera Andes Inc. acquisition | 3,066 | 3,066 | ' | ' |
Exercise of stock options assumed from Minera Andes Inc. acquisition (in shares) | ' | 1,062,000 | ' | ' |
Shares issued for Mexico mining concessions | 391 | 391 | ' | ' |
Shares issued for Mexico mining concessions (in shares) | ' | 83,000 | ' | ' |
Unrealized (loss) gain on available-for-sale securities, net of taxes | -5 | ' | -5 | ' |
Reclassification of unrealized loss on marketable equity securities disposed of during the period, net of tax | -993 | ' | -993 | ' |
Other-than-temporary impairment on marketable equity securities | 1,993 | ' | 1,993 | ' |
Net loss | -66,654 | ' | ' | -66,654 |
Balance at Dec. 31, 2012 | 889,591 | 1,349,777 | -294 | -459,892 |
Balance (in shares) at Dec. 31, 2012 | ' | 296,025,000 | ' | ' |
Increase (Decrease) in Shareholders' Equity | ' | ' | ' | ' |
Stock-based compensation | 1,382 | 1,382 | ' | ' |
Exercise of stock options | 95 | 95 | ' | ' |
Exercise of stock options (in shares) | 48,000 | 48,000 | ' | ' |
Exercise of stock options assumed from Minera Andes Inc. acquisition | 76 | 76 | ' | ' |
Exercise of stock options assumed from Minera Andes Inc. acquisition (in shares) | ' | 45,000 | ' | ' |
Shares issued for litigation settlement | 3,270 | 3,270 | ' | ' |
Shares issued for litigation settlement (in shares) | ' | 1,000,000 | ' | ' |
Shares issued for Mexico mining concessions | 96 | 96 | ' | ' |
Shares issued for Mexico mining concessions (in shares) | 41,500 | 41,000 | ' | ' |
Unrealized (loss) gain on available-for-sale securities, net of taxes | -1 | ' | -1 | ' |
Net loss | -147,742 | ' | ' | -147,742 |
Balance at Dec. 31, 2013 | $746,767 | $1,354,696 | ($295) | ($607,634) |
Balance (in shares) at Dec. 31, 2013 | ' | 297,159,000 | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows (used in) from operating activities: | ' | ' | ' |
Cash paid to suppliers and employees | ($91,931) | ($87,061) | ($59,087) |
Cash received from gold and silver sales | 45,982 | 5,557 | ' |
Investment in gold and silver bullion | ' | ' | -31,299 |
Proceeds from sale of gold and silver bullion | 1,467 | 23,836 | 11,739 |
Dividend received from Minera Santa Cruz S.A. | 1,826 | 9,770 | ' |
Interest received | 262 | 228 | 94 |
Cash used in operating activities | -42,394 | -47,670 | -78,553 |
Cash flows (used in) provided by investing activities: | ' | ' | ' |
Cash and short-term investments received from acquisition of Minera Andes Inc. | ' | 36,337 | ' |
Short-term investments (net) | ' | 3,933 | -3,933 |
Acquisition of mineral property interests | -150 | -712 | -10,059 |
Additions to property and equipment | -4,306 | -1,879 | -7,973 |
Proceeds from disposal of mineral property interests and property and equipment | 1,455 | 3,143 | 51 |
Investment in marketable equity securities | ' | ' | -284 |
Proceeds from sale of marketable securities | ' | 409 | 1,853 |
Increase (decrease) in restricted investments securing reclamation obligations | ' | 6 | -413 |
Cash (used in) provided by investing activities | -3,001 | 41,237 | -20,758 |
Cash flows from financing activities: | ' | ' | ' |
Sale of common stock for cash, net of issuance costs | ' | 60,419 | 105,415 |
Exercise of stock options | 171 | 3,885 | 773 |
Cash provided by financing activities | 171 | 64,304 | 106,188 |
Effect of exchange rate change on cash and cash equivalents | -1,376 | -366 | -279 |
(Decrease) increase in cash and cash equivalents | -46,600 | 57,505 | 6,598 |
Cash and cash equivalents, beginning of period | 70,921 | 13,416 | 6,818 |
Cash and cash equivalents, end of period | 24,321 | 70,921 | 13,416 |
Reconciliation of net loss to cash used in operating activities: | ' | ' | ' |
Net loss | -147,742 | -66,654 | -61,872 |
Adjustments to reconcile net loss from operating activities: | ' | ' | ' |
Income on investment in Minera Santa Cruz S.A., net of amortization | -846 | -20,835 | ' |
Impairment of investment in Minera Santa Cruz S.A. | 95,878 | ' | ' |
Impairment of mineral property interests and property and equipment | 62,963 | 18,468 | ' |
Loss (gain) on sale of assets | 6,743 | -1,110 | -36 |
Loss (gain) on sale of marketable securities | ' | 70 | -19 |
Recovery of income taxes | -53,365 | -27,244 | -180 |
(Gain) loss on litigation settlement | -560 | 3,830 | ' |
Investment in gold and silver bullion | ' | ' | -31,299 |
Proceeds from sale of gold and silver bullion | 1,467 | 23,836 | 11,739 |
Loss (gain) on sale of gold and silver bullion | 223 | -3,075 | -2,075 |
Unrealized loss on silver bullion | ' | 359 | 3,394 |
Other-than-temporary impairment on marketable equity securities | ' | 1,993 | ' |
Stock-based compensation | 1,382 | 3,405 | 2,671 |
Accretion of asset retirement obligation | 461 | 447 | 524 |
Depreciation | 942 | 1,033 | 577 |
Amortization of mineral property interests and asset retirement obligations | 1,530 | ' | ' |
Foreign exchange loss | 1,376 | 366 | 279 |
Other operating adjustments and write-downs | ' | ' | 82 |
Change in non-cash working capital items: | ' | ' | ' |
Increase in other assets related to operations | -1,318 | -2,175 | -5,042 |
Dividend receivable obtained from acquisition of Minera Andes Inc. | ' | 9,363 | ' |
Increase in liabilities related to operations | -11,528 | 10,253 | 2,704 |
Cash used in operating activities | ($42,394) | ($47,670) | ($78,553) |
THE_COMPANY
THE COMPANY | 12 Months Ended |
Dec. 31, 2013 | |
THE COMPANY | ' |
THE COMPANY | ' |
NOTE 1 THE COMPANY | |
McEwen Mining Inc. was organized under the laws of the State of Colorado on July 24, 1979. Since inception, the Company has been engaged in the exploration for, development of, production and sale of gold and silver. On January 24, 2012, the Company changed its name from US Gold Corporation to McEwen Mining Inc. after the completion of the acquisition of Minera Andes Inc. by way of a statutory plan of arrangement under the laws of the Province of Alberta, Canada. | |
The Company operates in Argentina, Mexico, and the United States. It owns a 49% interest in Minera Santa Cruz S.A., owner of the producing San José silver-gold mine in Santa Cruz, Argentina, which is operated by the majority owner of the joint venture, Hochschild Mining plc. It also owns the El Gallo 1 mine in Sinaloa, Mexico. Finally, the Company also owns the Los Azules copper deposit in San Juan, Argentina, the El Gallo 2 project in Sinaloa, Mexico, the Gold Bar project in Nevada in the United States, and a large portfolio of exploration properties in Argentina, Mexico and Nevada. | |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2013 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Use of Estimates: The Company's consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of the Company's consolidated financial statements requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and the related disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of expenses during the reporting period. The more significant areas requiring the use of management estimates and assumptions relate to environmental, reclamation and closure obligations; estimates of fair value for asset impairments; valuation allowances for deferred tax assets; reserves for contingencies and litigation; and estimates with respect to assumptions regarding stock-based compensation expense. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Actual results may differ significantly from these estimates. | |
Basis of Consolidation: The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Significant intercompany accounts and transactions have been eliminated. The functional currency of the majority of the Company's operations is the U.S. dollar. | |
Cash and Cash Equivalents: The Company considers cash in banks, deposits in transit, and highly liquid term deposits with original maturities of three months or less to be cash and cash equivalents. Because of the short maturity of these instruments, the carrying amounts approximate their fair value. Restricted cash is excluded from cash and cash equivalents and is included in long-term assets. | |
Business Combinations: The Company accounts for business combinations using the acquisition method of accounting pursuant to Accounting Standards Codification ("ASC") Topic 805, Business Combinations. The acquisition method requires the Company to determine the fair value of all acquired assets, including identifiable intangible assets, and all assumed liabilities. The fair value of the consideration paid is allocated to the underlying identifiable net assets, based on their respective estimated fair values and any excess is recorded as goodwill. | |
Determining the fair value of assets acquired and liabilities assumed requires management's judgment and the utilization of independent valuation experts, and often involves the use of significant estimates and assumptions, including assumptions with respect to future cash inflows and outflows, discount rates, and asset lives, among other items. Transaction costs are expensed as incurred and are reported on the acquisition costs line within the Consolidated Statements of Operations and Comprehensive Income (Loss). | |
Investments: The Company accounts for investments over which the Company exerts significant influence but does not control through majority ownership using the equity method of accounting pursuant to ASC Topic 323, Investments—Equity Method and Joint Ventures. Under this method, the Company's share of earnings and losses is included in the Consolidated Statement of Operations and Comprehensive Income (Loss) and the balance of the investment is adjusted by a like amount. Under the equity method, dividends received from an investee are recorded as decreases in the investment account, not as income. If and when there has been a loss in value that is other than a temporary decline, the carrying value is reduced to its fair value. | |
The Company accounts for its investment in marketable equity securities as available for sale securities in accordance with ASC guidance on accounting for certain investments in debt and equity securities. The Company periodically evaluates whether declines in fair values of its investments below the Company's carrying value are other-than-temporary in accordance with ASC guidance. Declines in fair value below the Company's carrying value deemed to be other-than-temporary are charged to earnings. | |
The Company accounts for its gold and silver bullion investments in accordance with ASC Topic 815. Since ASC Topic 815, Derivatives and Hedging, does not consider gold and silver to be readily convertible to cash, the Company carries these assets at the lower of cost or market. | |
IVA taxes receivable: In Mexico, value added taxes (IVA) are assessed on purchases of materials and services and sales of products. Businesses are generally entitled to recover the taxes they have paid related to purchases of materials and services, either as a refund or as a credit against future taxes payable. In Argentina, except at the San José mine, the Company expenses all IVA as their recoverability is uncertain. | |
Stockpiles, Material on Leach Pads, In-process Inventory, Precious Metals Inventory and Materials and Supplies: Stockpiles, material on leach pads, in-process inventory, precious metals inventory and materials and supplies are carried at the lower of average cost or net realizable value. For accounting purposes, the Company achieved commercial production for the El Gallo 1 mine during the third quarter of 2012 after its initial gold pour in late September. Net realizable value represents the estimated future sales price of the product based on current and long-term metals prices, less the estimated costs to complete production and bring the product to sale. Write-downs of stockpiles, material on leach pads, in-process inventory, precious metals inventory and materials and supplies, resulting from net realizable value impairments, are reported as a component of production costs applicable to sales. The current portion of stockpiles, material on leach pad, in-process inventory and materials and supplies is determined based on the expected amounts to be processed within the next 12 months. Stockpiles, material on leach pads, in-process inventory and materials and supplies not expected to be processed within the next 12 months, if any, are classified as long-term. | |
Stockpiles represent mineralized material that has been extracted from the mine and is available for further processing. Stockpiles are measured by estimating the number of tonnes added and removed from the stockpile, an estimate of the contained metals (based on assay data) and the estimated metallurgical recovery rates. Costs are allocated to stockpiles based on relative values of material stockpiled and processed using current mining costs incurred up to the point of stockpiling the mineralized material. Material is removed from the stockpile at an average cost per tonne. Since the Company only achieved production for accounting purposes in September 2012, no value was allocated to stockpiles prior to the month of September 2012. | |
Mineralized material on leach pads is the ore that is placed on pads where it is treated with a chemical solution that dissolves the gold contained in the ore over a period of months. Costs are attributed to the ore on leach pads based on current mining costs incurred up to the point of placing the ore on the pad. Costs are removed from the leach pad based on the average cost per estimated recoverable ounce of gold on the leach pad as the gold is recovered. The estimates of recoverable gold on the leach pads are calculated from the quantities of ore placed on the leach pads (measured tons added to the leach pads), the grade of ore placed on the leach pads (based on assay data) and a recovery percentage. In general, leach pads recover between 50% and 95% of the recoverable ounces in the first year of leaching, declining each year thereafter until the leaching is complete. The cumulative metallurgical recovery rate for gold production at the El Gallo 1 mine from September 2012 (start of production) to December 31, 2013 was approximately 61%. Although the quantities of recoverable gold placed on the leach pads are reconciled by comparing the grades of ore placed on the pads to the quantities of gold 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 the engineering estimates are refined based on actual results over time. | |
In-process inventories represent materials that are currently in the process of being converted to a saleable product. The El Gallo 1 conversion process uses an Adsorption-Desorption-Recovery ("ADR") processing plant utilizing carbon columns for recovery. In-process material is measured based on assays of the material fed into the process and the projected recoveries of the respective plants. In-process inventories are valued at the average cost of the material fed into the process attributable to the source material coming from the mines, stockpiles and/or leach pads plus the in-process conversion costs incurred to that point in the process. | |
Precious metal inventories include gold and silver bullion that is unsold and held at the refinery and is valued at the lower of the average cost of the respective in-process inventories incurred prior to the refining process plus applicable refining costs, or net realizable value. | |
Materials and supplies inventories are comprised of chemicals, reagents and consumable parts used in drilling and other operating activities. They are valued at the lower of average cost or net realizable value. Cost includes applicable taxes and freight. | |
Proven and Probable Reserves: The definition of proven and probable reserves is set forth in the SEC Industry Guide 7. Proven reserves are reserves for which (a) quantity is computed from dimensions revealed in outcrops, trenches, workings or drill holes, grade and/or quality are computed from the results of detailed sampling and (b) the sites for inspection, sampling and measurement are spaced so closely and the geological character is so well defined that size, shape, depth and mineral content of the reserves are well-established. Probable reserves are reserves for which quantity and grade and/or quality are computed from information similar to that used for proven (measured) reserves, but the sites for inspection, sampling, and measurement are farther apart or are otherwise less adequately spaced. The degree of assurance, although lower than that for proven (measured) reserves, is high enough to assume continuity between points of observations. | |
As of December 31, 2013, except for the Company's 49% interest in the San José mine, none of the Company's properties contain resources that satisfy the definition of proven and probable reserves. | |
Property and Equipment: Except as described below for certain design, construction and development costs, expenditures for new facilities or equipment and expenditures that extend the useful lives of existing facilities or equipment are capitalized and recorded at cost. Depreciation is computed using the straight-line method with the exception of mining equipment. Office furniture, equipment and light vehicles are being depreciated over estimated economic lives ranging from 3 to 5 years. Trailers, heavy vehicles and other site equipment are being depreciated over estimated economic lives from 5 to 15 years. Buildings are being depreciated over an estimated economic life of 20 years. Certain types of equipment which have alternative uses or significant salvage value, may be capitalized without proven and probable reserves. If a project commences production, amortization and depletion of capitalized costs for such equipment would be computed on a unit-of-production basis over the estimated life of mine tonnes. Mining equipment is depreciated using the units-of-production method based on tonnes processed over the estimated total mine life tonnes. | |
Design, Construction, and Development Costs: Certain costs to design and construct mining and processing facilities may be incurred prior to establishing proven and probable reserves. The Company classifies the development of the El Gallo Complex as an exploration stage project since no proven or probable reserves have been established, and accordingly, substantially all costs, including design, engineering, construction, and installation of equipment are expensed as incurred. | |
Mine development costs include engineering and metallurgical studies, drilling and other related costs to delineate an ore body, the removal of overburden to initially expose an ore body at open pit surface mines and the building of access ways, shafts, lateral access, drifts, ramps and other infrastructure at underground mines. Development costs are capitalized when proven and probable reserves exist and the property is a commercially minable property. Mine development costs incurred either to develop new ore deposits, expand the capacity of operating mines, or to develop mine areas substantially in advance of current production are capitalized. Costs of start-up activities and costs incurred to maintain current production or to maintain assets on a standby basis are charged to operations as incurred. Costs of abandoned projects are charged to operations upon abandonment. All capitalized costs are amortized using the units of production method over the estimated life of the ore body based on recoverable ounces to be mined from proven and probable reserves. | |
As of December 31, 2013, except for the Company's 49% interest in the San José mine, development costs are not capitalized at any of the Company's properties, as no proven and probable reserves exist. | |
Mineral Property Interests: Mineral property interests include acquired interests in development and exploration stage properties, which are considered tangible assets. The amount capitalized relating to a mineral property interest represents its fair value at the time of acquisition, either as an individual asset purchase or as a part of a business combination. The value of mineral property interests is primarily driven by the nature and amount of mineralized material believed to be contained in the properties. When proven and probable reserves exist, the relevant capitalized costs and mineral property interests are to be charged to expense based on the units of production method and upon commencement of production. However, when a property does not contain mineralized material that satisfies the definition of proven and probable reserves, such as with the El Gallo 1 mine, the amortization of the capitalized costs and mineral property interests are charged to expense based on the straight-line method over the estimated useful life of the mine. | |
Impairment of Assets: The Company reviews and evaluates its long-lived assets for impairment when events or changes in circumstances indicate that the related carrying amounts may not be recoverable. Recoverability is measured by comparing the undiscounted future net cash flows to the net book value. When the net book value exceeds future net undiscounted cash flows, an impairment loss is measured and recorded equal to the excess of the net book value over fair value. Mineral properties are monitored for impairment based on factors such as the Company's continued right to explore the area, exploration reports, assays, technical reports, drill results and its continued plans to fund exploration programs on the property. Except for the Company's 49% interest in the San José mine, the Company is unable to estimate undiscounted future net cash flows from its operations due to the absence of proven and probable reserves. As a result, the Company uses the market approach to estimate the fair value of the Nevada and Argentina exploration properties by using a combination of the observed market value per square mile in the region and an observed market value per ounce of mineralized material, and uses this measure to assess recoverability and impairment. For purposes of recognition and measurement of an impairment loss, the Company groups its properties by geological mineral complex, as this represents the lowest level at which the Company allocates its exploration spending independent of other assets and liabilities. | |
For the Company's 49% interest in the San José mine, an impairment loss is measured and recorded using a combined approach using a discounted cash flow model for the existing operations and a market approach for the fair value assessment of exploration land claims. Future cash flows are estimated based on quantities of recoverable minerals, expected gold and silver prices (considering current and historical prices, trends and related factors), production levels, operating costs, capital requirements and reclamation costs, all based on life-of-mine plans. The term "recoverable minerals" refers to the estimated amount of gold or other commodities that will be obtained after taking into account losses during ore processing and treatment. 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. The Company's estimates of future cash flows are based on numerous assumptions and it is possible that actual future cash flows will be significantly different than the estimates, as actual future quantities of recoverable minerals, gold, silver and other commodity prices, production levels and costs and capital are each subject to significant risks and uncertainties. | |
Asset Retirement Obligation: The Company records the fair value of a liability for an asset retirement obligation ("ARO") in the period that it is incurred if a reasonable estimate of fair value can be made. The associated asset retirement costs are capitalized as part of the carrying amount of the long-lived asset. Ongoing environmental and reclamation expenditures are debited against the ARO as incurred to the extent they relate to the ARO and to expense to the extent they do not. The fair value of AROs is measured by discounting the expected cash flows using a discount factor that reflects the credit-adjusted risk free rate of interest, while taking into account an inflation rate. The Company prepares estimates of the timing and amounts of expected cash flows when an ARO is incurred, which are updated to reflect changes in facts and circumstances. Changes in regulations or laws, any instances of non-compliance with laws or regulations that result in fines, or any unforeseen environmental contamination could result in a material impact to the amounts charged to earnings for reclamation and remediation. Significant judgments and estimates are made when estimating the fair value of AROs. Expected cash flows relating to AROs could occur over long periods of time and the assessment of the extent of environmental remediation work is highly subjective. Considering all of these factors that go into the determination of an ARO, the fair value of the AROs can materially change over time. | |
Revenue Recognition: Revenue includes sales value received for the Company's principal products, gold and silver. The Company currently does not earn revenue from any products other than gold and silver. Revenue is recognized when title to gold and silver passes to the buyer and when collectability is reasonably assured. Title passes to the buyer based on terms of the sales contract. Product pricing is determined at the point revenue is recognized by reference to active and freely traded commodity markets, for example, the London Bullion Market for both gold and silver, in an identical form to the product sold. | |
The Company entered into a doré sales agreement, whereby the Company has the option to sell approximately 90% of the gold and silver contained in doré bars produced at the El Gallo Complex prior to the completion of refining by a third party refiner, which refining normally takes approximately 15 business days. | |
Royalty Expense: The Company has a net smelter return ("NSR") royalty agreement with a third party on all metal production from the El Gallo 1 mine and a portion of expected future metal production from the El Gallo 2 project. The terms of the royalty agreement stipulate that production up to 30,000 of gold and gold equivalent ounces are subject to a 1% NSR, production between 30,001 to 380,000 of gold and gold equivalent ounces are subject to a 3.5% NSR, and 1% thereafter. Currently the Company is subject to the 3.5% NSR. Under the terms of the royalty agreement, the royalty holder has the option to settle the NSR payment in cash or gold and gold equivalent ounces. The royalty holder has indicated a preference to settle the NSR payment in gold and gold equivalent ounces which would be calculated on the day the refiner credits the Company's metals account. Cumulatively, on a life-of-mine basis through to December 31, 2013, approximately 110,000 gold and gold equivalent ounces have been produced from mineralized material within the scope of the NSR agreement. Royalty expenses are included in Production Costs Applicable to Sales in the Statement of Operations and Comprehensive Income (Loss). | |
Property Holding Costs: Holding costs to maintain a property on a care and maintenance basis are expensed in the period they are incurred. These costs include security and maintenance expenses, lease and claim fees and payments, and environmental monitoring and reporting costs. | |
Exploration Costs: Exploration costs include costs incurred to identify new mineral resources, evaluate potential resources, and convert mineral resources into proven and probable reserves. Exploration costs are expensed as incurred. | |
Foreign Currency: The functional currency for the Company's operations is the U.S. dollar. All monetary assets and liabilities denominated in a currency which is not the U.S. dollar are translated at current exchange rates at each balance sheet date and the resulting adjustments are included in a separate line item under other income (expense). Revenue and expense in foreign currencies are translated at the average exchange rates for the period. | |
Stock-Based Compensation: The Company accounts for stock options at fair value as prescribed in ASC Section 718-20-25. The Company estimates the fair value of each stock option at the grant date by using the Black-Scholes option-pricing model and provides for expense recognition over the service period, if any, of the stock option. | |
Income Taxes: The Company accounts for income taxes under ASC Section 740-10-25 using the liability method, recognizing certain temporary differences between the financial reporting basis of liabilities and assets and the related income tax basis for such liabilities and assets. This method generates either a net deferred income tax liability or asset for the Company, as measured by the statutory tax rates in effect. The Company derives the deferred income tax charge or benefit by recording the change in either the net deferred income tax liability or asset balance for the year. The Company records a valuation allowance against any portion of those deferred income tax assets when it believes, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred income tax asset will not be realized. | |
Comprehensive Income (Loss): In addition to net loss, comprehensive income (loss) includes all changes in equity during a period, such as cumulative unrecognized changes in fair value of marketable equity securities classified as available-for-sale or other investments. | |
Per Share Amounts: Basic earnings or loss per share includes no dilution and is computed by dividing income or loss available to common shareholders by the weighted average number of common and exchangeable shares outstanding during the period. Diluted earnings or loss per share reflect the potential dilution of securities that could share in the earnings of the Company and are computed in accordance with the treasury stock method based on the average number of common shares and dilutive common share equivalents outstanding. In these financial statements, warrants and stock options are not considered in the computation of diluted earnings or loss per share as their inclusion would be anti-dilutive for the periods presented. | |
Fair Value of Financial Instruments: ASC Section 825-10-50 requires disclosure of fair value information about financial instruments. Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of December 31, 2013. | |
The carrying values of financial instruments approximate their fair values. These financial instruments include cash and cash equivalents, marketable equity securities, short-term investments, accounts payable and accrued liabilities. Fair values were assumed to approximate carrying values for these financial instruments since they are short term in nature and their carrying amounts approximate fair value or they are receivable or payable on demand. | |
Recently Adopted Accounting Pronouncements | |
Comprehensive Income: In February 2013, the FASB issued ASU No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The updated guidance requires expanded disclosures for amounts reclassified out of accumulated other comprehensive income by component. The guidance requires the presentation of amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, a cross-reference to other disclosures that provide additional detail about those amounts is required. The guidance is to be applied prospectively for reporting periods beginning after December 15, 2012. The update is effective for the Company's fiscal year beginning January 1, 2013. The new guidance affects disclosures only and the adoption had no impact on the Company's consolidated financial position, results of operations or cash flows. | |
Disclosures about Offsetting Assets and Liabilities: In November 2011, ASC guidance was issued related to disclosures about offsetting assets and liabilities. The new standard requires disclosures to allow investors to better compare financial statements prepared under U.S. GAAP with financial statements prepared under International Financial Reporting Standards. In January 2013, an update was issued to further clarify that the disclosure requirements are limited to derivatives, repurchase agreements, and securities lending transactions to the extent that they are (i) offset in the financial statements or (ii) subject to an enforceable master netting arrangement or similar agreement. Adoption of the new guidance, effective for the fiscal year beginning January 1, 2013, had no impact on its consolidated financial position, results of operations or cash flows. | |
Recently Issued Accounting Pronouncements | |
Presentation of an Unrecognized Tax Benefit: In July 2013, ASC guidance was issued related to the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss or a tax credit carryforward exists. The updated guidance requires an entity to net its unrecognized tax benefits against the deferred tax assets for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward under the tax law of the applicable jurisdiction. A gross presentation will be required only if such carryforwards are not available or would not be used by the entity to settle any additional income taxes resulting from disallowance of the uncertain tax position. The update is effective prospectively for the Company's fiscal year beginning January 1, 2014. The Company does not expect the updated guidance to have an impact on its consolidated financial position, results of operations or cash flows. | |
Foreign Currency Matters: In March 2013, ASC guidance was issued related to Foreign Currency Matters to clarify the treatment of cumulative translation adjustments when a parent sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a business within a foreign entity. The updated guidance also resolves the diversity in practice for the treatment of business combinations achieved in stages in a foreign entity. The update is effective prospectively for the Company's fiscal year beginning January 1, 2014. The Company does not expect the updated guidance to have an impact on its consolidated financial position, results of operations or cash flows. | |
BUSINESS_ACQUISITION
BUSINESS ACQUISITION | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
BUSINESS ACQUISITION | ' | ||||||||||
BUSINESS ACQUISITION | ' | ||||||||||
NOTE 3 BUSINESS ACQUISITION | |||||||||||
On January 24, 2012, the Company completed the acquisition of Minera Andes through a court-approved plan of arrangement under Alberta, Canada law (the "Arrangement"), under which Minera Andes, a Canadian company, became an indirect wholly-owned subsidiary of the Company. | |||||||||||
On the closing date of the Arrangement, holders of Minera Andes' common stock received a number of exchangeable shares of McEwen Mining-Minera Andes Acquisition Corp. ("Exchangeable Shares"), an indirect wholly-owned Canadian subsidiary of the Company, equal to the number of Minera Andes shares, multiplied by the exchange ratio of 0.45. In the aggregate, former Minera Andes shareholders received 127,331,498 Exchangeable Shares. After closing of the Arrangement, the name of the Company was changed to McEwen Mining Inc. The Company's common stock began trading on the NYSE and TSX under the symbol "MUX" and the Exchangeable Shares began trading on the TSX under the symbol "MAQ" on January 27, 2012. | |||||||||||
As a result of the Arrangement and on the date of closing, the combined company was held approximately 52% by then-existing McEwen Mining shareholders and 48% by former Minera Andes shareholders. On a diluted basis, the combined company was held approximately 53% by then-existing McEwen Mining shareholders and 47% by former Minera Andes shareholders. | |||||||||||
In June 2011, Robert R. McEwen, the Company's Chairman, President, Chief Executive Officer and largest shareholder and then also the Chairman, President, Chief Executive Officer and largest shareholder of Minera Andes, proposed the Arrangement. In connection with the Arrangement, Mr. McEwen received approximately 38.7 million Exchangeable Shares. Mr. McEwen owns approximately 25% of the shares of the combined Company. At December 31, 2013, Mr. McEwen exchanged all but 0.5 million Exchangeable Shares for shares of the Company's common stock. | |||||||||||
The Exchangeable Shares are exchangeable for the Company's common stock on a one-for-one basis. Option holders of Minera Andes received replacement options entitling them to receive, upon exercise, shares of the Company's common stock, reflecting the exchange ratio of 0.45 with the appropriate adjustment of the exercise price per share. The option life and vesting period of the replacement options did not change from the option life granted under the Minera Andes option plan. The estimated fair value of the vested portion of the replacement options of $3.2 million was included as part of the purchase price consideration at their fair values based on the Black-Scholes option pricing model. | |||||||||||
The acquisition was accounted for using the acquisition method in accordance with ASC Topic 805, Business Combinations, with the Company being identified as the acquirer. The measurement of the purchase consideration was based on the market price of the Company's common stock on January 24, 2012, which was $5.22 per share. The total purchase price, including the fair value of the options, amounted to $667.8 million. The total transaction costs incurred through December 31, 2012 by the Company was $5.4 million, of which $3.9 million was reported in the year ended December 31, 2011 in general and administrative expenses, and $1.5 million for the year ended December 31, 2012 in acquisition costs in the Consolidated Statements of Operations and Comprehensive Income (Loss). | |||||||||||
The allocation of the purchase price, based on the estimated fair value of assets acquired and liabilities assumed on January 24, 2012, is summarized in the following table (in thousands): | |||||||||||
Fair Value | |||||||||||
Purchase price: | |||||||||||
Exchangeable shares of McEwen Mining-Minera Andes Acquisition Corp. | $ | 664,671 | |||||||||
Stock options to be exchanged for options of McEwen Mining Inc. | 3,175 | ||||||||||
| | | | | |||||||
$ | 667,846 | ||||||||||
| | | | | |||||||
| | | | | |||||||
Net assets acquired: | |||||||||||
Cash and cash equivalents | $ | 31,385 | |||||||||
Short-term investments | 4,952 | ||||||||||
Other current assets | 9,828 | ||||||||||
Inventories | 1,362 | ||||||||||
Mineral property interests | 539,092 | ||||||||||
Investment in Minera Santa Cruz S.A. | 262,883 | ||||||||||
Equipment | 1,647 | ||||||||||
Accounts payable | (5,323 | ) | |||||||||
Deferred income tax liability | (177,980 | ) | |||||||||
| | | | | |||||||
$ | 667,846 | ||||||||||
| | | | | |||||||
| | | | | |||||||
The fair value of mineral property interests exceeded the carrying value of the underlying assets for tax purposes by approximately $508.5 million. The resulting estimated deferred income tax liability originally associated with this temporary difference was approximately $178.0 million, which was included in the allocation of purchase price above. At the end of 2012, the Company reduced the deferred income tax liability from $178.0 million to $156.9 million, as a result of fluctuations in the foreign exchange rates between the Argentine peso and the U.S. dollar from January 24, 2012 to December 31, 2012. For the year ended December 31, 2013, the Company recorded an additional deferred income tax recovery of $36.3 million as a result of the fluctuations in exchange rates since December 31, 2012. Furthermore, in the second quarter of 2013, the Company recorded an impairment of $27.7 million on certain of its Santa Cruz mineral property interests, as discussed in Note 6, along with an associated $2.3 million of income tax recovery. Finally, pursuant to a vend-in agreement entered into with Hochschild, as described in Note 7, the Company contributed to MSC the mining rights of certain Santa Cruz exploration properties. As a result, the Company transferred the carrying value of the properties of $53.2 million to its investment in MSC. This transfer resulted in a decrease in the related deferred tax liability balance of $16.7 million. As at December 31, 2013, the deferred income tax liability on the assets acquired from Minera Andes was reduced to $101.5 million, which is included in the deferred income tax liability balance of $158.9 million on the Consolidated Balance Sheet. | |||||||||||
For the purposes of the Company's financial statements, the purchase consideration was allocated to the fair value of assets acquired and liabilities assumed, based on an independent valuation report and management's best estimates. | |||||||||||
Unaudited Pro Forma Results | |||||||||||
ASC Topic 805 requires supplemental information on a pro forma basis to disclose the results of operations as though the business combination had been completed as of the beginning of the periods being reported. | |||||||||||
The following table sets forth on a pro forma basis, the results of operations for McEwen Mining, had the acquisition of Minera Andes been completed on January 1, 2012 and 2011 (in thousands): | |||||||||||
Year ended December 31, 2012 | McEwen Mining | Minera Andes(1) | Combined | ||||||||
Revenue | $ | 26,801 | $ | 4,979 | $ | 31,780 | |||||
Net (loss) income for the year | (66,654 | ) | 3,498 | (63,156 | ) | ||||||
Year ended December 31, 2011 | McEwen Mining | Minera Andes | Combined | ||||||||
Revenue | $ | — | $ | 44,982 | $ | 44,982 | |||||
Net (loss) income for the year | (61,872 | ) | 26,542 | (35,330 | ) | ||||||
-1 | |||||||||||
Year ended December 31, 2012 represents the results of Minera Andes' operations from January 1, 2012 through January 24, 2012, closing date of the acquisition. Beginning January 25, 2012, the results of Minera Andes' operations are included in McEwen Mining's consolidated financial statements. | |||||||||||
GOLD_AND_SILVER_BULLION_INVEST
GOLD AND SILVER BULLION INVESTMENTS | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
GOLD AND SILVER BULLION INVESTMENTS | ' | |||||||||||||||||||
GOLD AND SILVER BULLION INVESTMENTS | ' | |||||||||||||||||||
NOTE 4 GOLD AND SILVER BULLION INVESTMENTS | ||||||||||||||||||||
From time to time, the Company invests a portion of its cash in physical gold and silver bullion. Below is the balance of its holdings of gold and silver as at December 31, 2013 and 2012: | ||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Gold | Silver | Gold | Silver | |||||||||||||||||
(dollars in thousands, | ||||||||||||||||||||
except ounces and per ounce) | ||||||||||||||||||||
Number of ounces | — | — | 793 | 24,969 | ||||||||||||||||
Average cost per ounce | n/a | n/a | $ | 1,278.63 | $ | 27.08 | ||||||||||||||
Total cost | $ | — | $ | — | $ | 1,014 | $ | 676 | ||||||||||||
Fair value per ounce | n/a | n/a | $ | 1,657.50 | $ | 29.95 | ||||||||||||||
Total fair value | $ | — | $ | — | $ | 1,314 | $ | 748 | ||||||||||||
The fair value of gold and silver was based on the daily London P.M. fix as at the reporting date. Since ASC Topic 815, Derivatives and Hedging, does not consider gold and silver to be readily convertible to cash, the Company carries these assets at the lower of cost or market. | ||||||||||||||||||||
During the year ended December 31, 2013, the Company sold its remaining holdings of gold and silver bullion. The Company recorded a realized loss of $0.2 million on its gold and silver bullion, as a result of its average cost of $1,278.63 and $27.08 per ounce, respectively, being lower than its selling price of $1,245.70 per ounce of gold and $19.18 per ounce of silver at the time of the sale. | ||||||||||||||||||||
Changes in the Company's holdings of gold and silver for the year ended December 31, 2013 and 2012 are as follows: | ||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Gold | Silver | Total | Gold | Silver | Total | |||||||||||||||
(in thousands) | ||||||||||||||||||||
Opening Balance | $ | 1,014 | $ | 676 | $ | 1,690 | $ | 7,232 | $ | 15,578 | $ | 22,810 | ||||||||
Proceeds from sale | (988 | ) | (479 | ) | (1,467 | ) | (7,982 | ) | (15,854 | ) | (23,836 | ) | ||||||||
(Loss) gain on sale | (26 | ) | (197 | ) | (223 | ) | 1,764 | 1,311 | 3,075 | |||||||||||
Unrealized loss | — | — | — | — | (359 | ) | (359 | ) | ||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Ending Balance | $ | — | $ | — | $ | — | $ | 1,014 | $ | 676 | $ | 1,690 | ||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
INVENTORIES
INVENTORIES | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
INVENTORIES | ' | |||||||
INVENTORIES | ' | |||||||
NOTE 5 INVENTORIES | ||||||||
Inventories at December 31, 2013 and 2012 consist of the following: | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Ore on leach pads | $ | 2,749 | $ | 685 | ||||
In-process inventory | 2,681 | 3,604 | ||||||
Stockpiles | 778 | 308 | ||||||
Precious metals | 1,300 | 1,322 | ||||||
Materials and supplies | 1,292 | 1,343 | ||||||
| | | | | | | | |
Inventories | $ | 8,800 | $ | 7,262 | ||||
| | | | | | | | |
| | | | | | | | |
MINERAL_PROPERTY_INTERESTS_AND
MINERAL PROPERTY INTERESTS AND ASSET RETIREMENT OBLIGATIONS | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
MINERAL PROPERTY INTERESTS AND ASSET RETIREMENT OBLIGATIONS | ' | ||||||||||||
MINERAL PROPERTY INTERESTS AND ASSET RETIREMENT OBLIGATIONS | ' | ||||||||||||
NOTE 6 MINERAL PROPERTY INTERESTS AND ASSET RETIREMENT OBLIGATIONS | |||||||||||||
Mineral Property Interests | |||||||||||||
At December 31, 2013, the Company held mineral rights in Argentina, mineral concession rights in Mexico, including the El Gallo Complex, and mineral interests in Nevada. The El Gallo 1 mine recommenced gold and silver production in September 2012. For accounting purposes, the mine achieved production in September 2012. For operational purposes, production was effective as of January 1, 2013. For the year ended December 31, 2013, a total of 31,129 gold equivalent ounces was produced at El Gallo 1. | |||||||||||||
In May 2013, the Company entered into a sale agreement for certain mining claims in the Limo Complex, Nevada, for a sale price of $0.8 million. The claims had a carrying value of $7.2 million. As the carrying value exceeded the proceeds from the sales agreement, the Company recorded a loss on disposal of $6.4 million, along with a resulting reduction in deferred tax liability and recovery of deferred income taxes of $2.5 million. This resulted in a net loss on disposal of $3.9 million. The loss of $6.4 million is included in Loss on Sale of Assets, in the Statement of Operations and Comprehensive Income (Loss) for the year ended December 31, 2013. The Limo Complex is part of the "Nevada" segment, as shown below and in Note 16, Operating Segment Reporting. | |||||||||||||
During the second quarter of 2013, the Company recorded an impairment charge of $27.7 million relating to its exploration properties in the Province of Santa Cruz. The impairment was primarily due to an unexpected significant decline in gold and silver market prices, continued inflationary pressures and the new tax on mining reserves in the Province, resulting in a depressed market for exploration properties in Argentina. The Company engaged a third party valuator to determine the fair value of these mineral property interests by using the observed market value per acre in the region. The carrying value of these properties exceeded their estimated fair value, resulting in an impairment charge of $27.7 million, along with a resulting reduction in deferred tax liability and recovery of future income taxes of $2.3 million, for a net impairment charge of $25.4 million for the year ended December 31, 2013. The impairment charge of $27.7 million is included in Impairment of Mineral Property Interests and Property and Equipment in the Statement of Operations and Comprehensive Income (Loss) for the year ended December 31, 203. The Santa Cruz Province mineral property interests are part of the "Argentina" segment, as shown below and in Note 16, Operating Segment Reporting. | |||||||||||||
During the third quarter of 2013, the Company rationalized its mineral property interests in Nevada in order to focus its exploration program on more prospective areas. As a result, the Company allowed certain claims from one of its Nevada properties in the West Battle Mountain Complex to lapse. These mineral property interests in question were acquired in 2007 and had a carrying value of $6.3 million, which was written off during the third quarter of 2013, along with a resulting reduction in deferred tax liability and recovery of deferred income taxes of $2.2 million. This resulted in a net write-off for the Company of $4.1 million which is included in the net income (loss) for the year ended December 31, 2013. The write off of $6.3 million is included in Impairment of Mineral Property Interests and Property and Equipment in the Statement of Operations and Comprehensive Income (Loss) for the year ended December 31, 203. The West Battle Mountain Complex is part of the "Nevada" segment, as shown below and in Note 16, Operating Segment Reporting. | |||||||||||||
During the fourth quarter of 2013, the Company performed an impairment test of its mineral property interests. The Company engaged a third party valuator to determine the fair value of all of its properties. The valuator used the market approach to estimate the fair value of the properties by using the observed market value per acre in the region. Based on this approach, it was determined that the carrying values of the mineral property interests in the Limo Complex and Other United States Properties exceeded their fair value and as a result the Company recorded an impairment charge of $28.9 million, along with a resulting reduction in deferred tax liability and recovery of deferred income taxes of $10.1 million, for a net impairment of $18.8 million for the year ended December 31, 2013. The impairment charge of $28.9 million is included in Impairment of Mineral Property Interests and Property and Equipment in the Statement of Operations and Comprehensive Income (Loss) for the year ended December 31, 2013. The Limo Complex and Other United States Properties are part of the "Nevada" segment, as shown below and in Note 16, Operating Segment Reporting. | |||||||||||||
Further, in October 2013, the Company and Hochschild entered into a vend-in agreement with MSC pursuant to which the Company and Hochschild agreed to contribute to MSC the mining rights of certain Santa Cruz exploration properties, including the Telken, Este, Piramides and the Tobias tenements. The Company's carrying value of these properties of $53.2 million, as well as the related deferred tax liability of $17.3 million, was transferred to the Company's investment in MSC, with no gain or loss recognized upon transfer. The carrying value of $53.2 million was net of the impairment recorded in second quarter of 2013, discussed above. Refer to Note 7, Investment in Minera Santa Cruz S.A. ("MSC")—San José Mine, for further details on the vend-in agreement. | |||||||||||||
Impairments recorded in the year ended December 31, 2012 related to the Company's North Battle Mountain properties of $14.0 million. In November 2012, the Company entered into an exploration earn-in and joint venture option agreement ("Option Agreement") with a third party whereby they have the option to earn a 51% interest in the property once they incur cumulative project related expenditures of $2.4 million on or before October 2015. The North Battle Mountain properties were acquired in 2007 and had a carrying value of $18.2 million. Based on the work of the third party valuator that the Company engaged to determine the fair value of all of the Company's properties as part of the Company's annual impairment test, the Company determined that the implied value of the Option Agreement was reduced to $4.2 million, resulting in an impairment of $14.0 million. The valuator used the market approach to estimate the fair value of the properties by using the observed market value per square mile in the region. The impairment charge of $14.0 million was recorded in Impairment of Mineral Property Interests and Property and Equipment in the Statement of Operations and Comprehensive Income (Loss) for the year ended December 31, 2012. The North Battle Mountain Complex is part of the "Nevada" segment, as shown below and in Note 16, Operating Segment Reporting. | |||||||||||||
Further, in 2012, the Company performed a strategic review of its property holdings in Nevada and as a result, allowed certain claims from its Other United States Properties to lapse. These mineral property interests in question were acquired in 2007 and had a carrying value of $2.9 million. As such, the Company recorded an impairment charge of $2.9 million in Impairment of Mineral Property Interests and Property and Equipment in the Statement of Operations and Comprehensive Income (Loss) for the year ended December 31, 2012. The properties were part of the "Nevada" segment, as shown below and in Note 16, Operating Segment Reporting. The Company wrote off the carrying value of $1.3 million related to lapsing of certain mineral concessions in the El Gallo 2 area. The properties were part of the "Mexico" segment, as shown below and in Note 16, Operating Segment Reporting. | |||||||||||||
During the years ended December 31, 2013, 2012 and 2011, the Company incurred $24.8 million, $47.2 million, and $43.0 million, respectively, in exploration expenses and related expenditure costs which are included in the Statement of Operations and Comprehensive Income (Loss) in each of the years presented. | |||||||||||||
For the year ended December 31, 2013, the Company recorded $1.5 million of amortization expense related to El Gallo 1, which is included in Production Costs Applicable to Sales in the Statement of Operations and Comprehensive Income (Loss) for the year ended December 31, 2013. This included $1.0 million in amortization expense related to its mineral properties in Mexico for the year ended December 31, 2013. | |||||||||||||
Based on the above, impairment charges were recorded on the following mineral property interests for the years ended December 31, 2013, 2012, and 2011: | |||||||||||||
Name of Property/Complex | Segment | 2013 | 2012 | 2011 | |||||||||
(in thousands) | |||||||||||||
Telken Tenements | Argentina | $ | 13,792 | $ | — | $ | — | ||||||
Este Tenements | Argentina | 2,784 | — | — | |||||||||
Piramides Tenements | Argentina | 5,079 | — | — | |||||||||
Tobias Tenements | Argentina | 6,074 | — | — | |||||||||
North Battle Mountain Complex | Nevada | — | 14,044 | — | |||||||||
West Battle Mountain Complex | Nevada | 6,287 | — | — | |||||||||
Limo Complex | Nevada | 19,450 | — | ||||||||||
Other United States Properties | Nevada | 9,497 | 2,902 | — | |||||||||
El Gallo 2 Properties | Mexico | — | 1,343 | — | |||||||||
Property, plant and equipment | Argentina | — | 179 | — | |||||||||
| | | | | | | | | | | | | |
Total impairment | $ | 62,963 | $ | 18,468 | $ | — | |||||||
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
The carrying values for all of the mineral properties held by the Company as at December 31, 2013 and 2012 are noted below: | |||||||||||||
Name of Property/Complex | State/Province | Country | 2013 | 2012 | |||||||||
(in thousands) | |||||||||||||
Los Azules Copper Project | San Juan | Argentina | $ | 431,190 | $ | 431,190 | |||||||
Other San Juan Exploration Properties | San Juan | Argentina | 7,818 | 7,818 | |||||||||
Telken Tenements(1) | Santa Cruz | Argentina | — | 40,234 | |||||||||
Este Tenements(1) | Santa Cruz | Argentina | — | 8,121 | |||||||||
Piramides Tenements(1) | Santa Cruz | Argentina | — | 14,815 | |||||||||
Tobias Tenements(1) | Santa Cruz | Argentina | — | 17,719 | |||||||||
Cerro Mojon Tenements | Santa Cruz | Argentina | 1,971 | 1,971 | |||||||||
La Merced Tenements | Santa Cruz | Argentina | 1,891 | 1,891 | |||||||||
Cabeza de Vaca Tenements | Santa Cruz | Argentina | 877 | 877 | |||||||||
El Trumai Tenements | Santa Cruz | Argentina | 1,534 | 1,534 | |||||||||
Martes 13 Tenements | Santa Cruz | Argentina | 3,568 | 3,568 | |||||||||
Celestina Tenements | Santa Cruz | Argentina | 1,753 | 1,753 | |||||||||
Other Santa Cruz Exploration Properties | Santa Cruz | Argentina | 7,601 | 7,601 | |||||||||
Tonkin Complex | Nevada | United States | 51,946 | 51,989 | |||||||||
Gold Bar Complex | Nevada | United States | 77,012 | 77,012 | |||||||||
Limo Complex | Nevada | United States | 23,438 | 50,098 | |||||||||
North Battle Mountain Complex | Nevada | United States | 4,148 | 4,148 | |||||||||
East Battle Mountain Complex | Nevada | United States | 4,060 | 4,060 | |||||||||
West Battle Mountain Complex | Nevada | United States | 2,567 | 8,854 | |||||||||
Other United States Properties | Nevada | United States | 9,610 | 19,107 | |||||||||
El Gallo 1 Mine | Sinaloa | Mexico | 8,502 | 8,126 | |||||||||
El Gallo 2 Properties | Sinaloa | Mexico | 3,482 | 4,581 | |||||||||
| | | | | | | | | | | | ||
Total Mineral Property Interests | $ | 642,968 | $ | 767,067 | |||||||||
| | | | | | | | | | | | ||
| | | | | | | | | | | | ||
-1 | |||||||||||||
As at December 31, 2013, these tenements were transferred to MSC as part of the vend-in agreement described above and in Note 7, Investment in Minera Santa Cruz S.A. ("MSC")—San José Mine, and were therefore not included in the Company's mineral property interests as at December 31, 2013. | |||||||||||||
Asset Retirement Obligations | |||||||||||||
The Company is responsible for reclamation of certain past and future disturbances at its properties. The two most significant properties subject to these obligations are the historic Tonkin property in Nevada and the El Gallo 1 mine in Mexico. | |||||||||||||
The current undiscounted estimate of the reclamation costs for existing disturbances on the Tonkin property to the degree required by the U.S. Bureau of Land Management ("BLM") and the Nevada Department of Environmental Protection ("NDEP") is $2.8 million. Assumptions used to compute the asset retirement obligations for the year ended December 31, 2013 for the Tonkin property included a credit adjusted risk free rate and inflation rate of 8.7% (2012, 2011—8.7%) and 3.0% (2012, 2011—3.0%), respectively. Expenses are expected to be incurred between the years 2014 and 2040. The Company submitted a mine closure plan to the NDEP and BLM for the Tonkin property during the fourth quarter of 2010. Based on the Company's estimate, the change in its bonding requirements was insignificant. As at December 31, 2013, the closure plan has already been approved by the NDEP but is still under review by the BLM pursuant to the National Environmental Policy Act. A request for additional information was received from the BLM in the last quarter of 2013. A response to the request for additional information is being prepared for submittal. It is possible that reclamation plan cost estimates and bonding requirements may increase as a result of this review. The Company, however, is unable to meaningfully estimate possible increases at this time. For mineral properties in the United States, the Company maintains required reclamation bonding with various governmental agencies, and at December 31, 2013, had cash bonding in place of $5.2 million (2012—$5.2 million). | |||||||||||||
The current undiscounted estimate of the reclamation costs for existing disturbances at the El Gallo 1 mine is currently $4.6 million. Assumptions used to compute the asset retirement obligations for the year ended December 31, 2013 for the Magistral Mine included a credit adjusted risk free rate and inflation rate of 6.4% (2012, 2011—6.4%) and 3.8% (2012, 2011—3.8%), respectively. Expenses are expected to be incurred between the years 2014 and 2018. Under Mexican regulations, surety bonding of projected reclamation costs is not required. | |||||||||||||
The Company's asset retirement obligations for years ended December 31, 2013 and 2012 are as follows: | |||||||||||||
2013 | 2012 | ||||||||||||
(in thousands) | |||||||||||||
Asset retirement obligation liability—opening balance | $ | 6,359 | $ | 6,253 | |||||||||
Settlements | (60 | ) | (47 | ) | |||||||||
Accretion of liability | 461 | 447 | |||||||||||
Adjustment reflecting updated estimates | 487 | (294 | ) | ||||||||||
| | | | | | | | ||||||
Asset retirement obligation liability—ending balance | $ | 7,247 | $ | 6,359 | |||||||||
| | | | | | | | ||||||
| | | | | | | | ||||||
As at December 31, 2013, the current portion of the asset retirement obligation was $1.4 million (December 31, 2012—$0.1 million). | |||||||||||||
If proven and probable reserves exist at the Company's properties, the relevant capitalized asset retirement costs and mineral property interests are to be charged to expense based on the units of production method and upon commencement of production. As previously discussed, El Gallo 1 began production in September 2012. However, since El Gallo 1 does not contain mineralized material that satisfies the definition of proven and probable reserves under the SEC Industry Guide 7, the amortization of the capitalized asset retirement costs and mineral property interests are charged to expense based on the straight-line method over the estimated useful life of the mine. For the year ended December 31, 2013, the Company recorded $1.5 million of amortization expense related to El Gallo 1, which is included in Production Costs Applicable to Sales in the Statement of Operations and Comprehensive Income (Loss) for the year ended December 31, 2013. This included $0.5 million in amortization expense related to its asset retirement costs in Mexico for the year ended December 31, 2013. | |||||||||||||
INVESTMENT_IN_MINERA_SANTA_CRU
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE | ' | |||||||
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE | ' | |||||||
NOTE 7 INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC")—SAN JOSÉ MINE | ||||||||
As discussed above in Note 3, Business Acquisition, with the acquisition of Minera Andes in 2012, the Company acquired a 49% interest in MSC, owner and operator of the San José mine in Santa Cruz, Argentina. The Company's share of earnings and losses from its investment in MSC is included in the Consolidated Statement of Operations and Comprehensive Income (Loss), and amounted to net income of $2.1 million for the year ended December 31, 2013, or 49% of MSC's reported net income of $4.4 million. The amortization of the fair value increments arising from the purchase price allocation decreased our share of the reported net income from MSC by $1.3 million, resulting in a net income of $0.8 million for the year ended December 31, 2013, excluding an impairment charge of $95.9 million recorded in the second quarter of 2013. This compares to our share of MSC's reported net income of $25.3 million for the period from January 25, 2012 (after the closing of the acquisition of Minera Andes) to December 31, 2012, which was reduced by $4.5 million for the amortization of the fair value increments, resulting in our share of reported net income of $20.8 million for the period ended December 31, 2012. | ||||||||
A summary of the operating results from MSC for the year ended December 31, 2013 and the period from January 25, 2012 (after the closing of the acquisition of Minera Andes) to December 31, 2012 is as follows: | ||||||||
Year Ended | Period ended | |||||||
December 31, 2013 | December 31, 2012 | |||||||
(in thousands) | ||||||||
Minera Santa Cruz S.A. (100%) | ||||||||
Sales | $ | 240,723 | $ | 290,848 | ||||
Production costs applicable to sales | (190,281 | ) | (155,915 | ) | ||||
Income from operations before extraordinary items | 4,338 | 51,634 | ||||||
Net income | 4,338 | 51,634 | ||||||
Portion attributable to McEwen Mining Inc. (49%) | ||||||||
Net income on investment in MSC | $ | 2,126 | $ | 25,301 | ||||
Amortization of fair value increments | (1,280 | ) | (4,466 | ) | ||||
| | | | | | | | |
Income on investment in MSC, net of amortization | $ | 846 | $ | 20,835 | ||||
| | | | | | | | |
| | | | | | | | |
Changes in the Company's investment in MSC for the year ended December 31, 2013 and 2012 are as follows: | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Investment in MSC, beginning of the year | $ | 273,948 | $ | — | ||||
Fair value of investment in MSC from acquisition of Minera Andes | — | 262,883 | ||||||
Income from equity investment | 2,126 | 25,301 | ||||||
Amortization of fair value increments | (1,280 | ) | (4,466 | ) | ||||
Dividend distribution | (1,826 | ) | (9,770 | ) | ||||
Impairment of investment in MSC | (95,878 | ) | — | |||||
Contribution of Santa Cruz exploration properties, net of tax | 35,857 | — | ||||||
| | | | | | | | |
Investment in MSC, end of the year | $ | 212,947 | $ | 273,948 | ||||
| | | | | | | | |
| | | | | | | | |
During the first quarter of 2013, it was determined that the cost of sales reported by MSC under U.S. GAAP for the year and quarter ended December 31, 2012 was understated, resulting in an overstatement of MSC's after-tax net income of $3.9 million. As a result, the prior year income from the Company's equity investment of 49% in MSC was overstated by $1.9 million. As the error is not material to the current or previously reported consolidated financial statements, the correction was recorded in the quarter ended March 31, 2013. | ||||||||
During the second quarter of 2013, the Company recorded an impairment charge of $95.9 million on its investment in MSC, primarily as a result of an unexpected and significant decline in gold and silver market prices and continued inflationary pressures during the year. The Province of Santa Cruz, in which MSC operates, also passed amendments to the Provincial Tax Code and Provincial Tax Law, which imposed a new tax on mining reserves in the Province. The tax will amount to 1% of the value of mine reserves reported in feasibility studies and financial statements inclusive of variations resulting from ongoing operations, less certain deductions, and MSC has estimated that this would result in a tax payable amount ranging between $2.0 million and $3.0 million for 2013. Based on these developments, the Company concluded that there were indicators that there was a loss in value in its investment in MSC that was other than temporary. The Company engaged a third party valuator to test the recoverability and determine the fair value of its investment in MSC. The valuator used a discounted cash flow approach and determined that the carrying value of the Company's investment in MSC exceeded its estimated fair value. As the loss in value of the investment was considered other than temporary, an impairment of $95.9 million was recorded in the second quarter of 2013. The investment in MSC is part of the "Argentina" segment as shown in Note 16, Operating Segment Reporting. | ||||||||
In October 2013, the Company and Hochschild entered into a vend-in agreement with MSC pursuant to which the Company agreed to contribute to MSC the mining rights of certain Santa Cruz exploration properties. The properties transferred totaled approximately 48,900 hectares, and included amongst others the Telken, Piramides, Tobias, and Este tenements, and are in close proximity to or abutting the properties comprising the San José mine. Hochschild also contributed to MSC certain of their mineral properties located in the same region, totaling approximately 82,700 hectares. The agreement contains a 2% net smelter return royalty payable to the Company or Hochschild based on any of MSC's production from the respective mineral properties contributed by each party. The carrying value of the Company's properties of $53.2 million, as well as the related deferred tax liability of $17.3 million, was transferred to the Company's investment in MSC, with no gain or loss recognized upon transfer. The carrying value of $53.2 million was net of the impairment recorded in second quarter of 2013, discussed in Note 6, Mineral Property Interests and Asset Retirement Obligations. The mineral property interests were part of the "Argentina" segment, as shown in Note 6, Mineral Property Interests and Asset Retirement Obligations, and Note 16, Operating Segment Reporting. | ||||||||
As at December 31, 2013, MSC had current assets of $113.1 million, total assets of $561.7 million, current liabilities of $66.7 million and total liabilities of $178.7 million. These balances include the increase in fair value and amortization of the fair value increments arising from the purchase price allocation, as well as the impairment charge of $95.9 million recorded in the second quarter of 2013. | ||||||||
In 2013, the Company received $1.8 million in dividends from MSC, compared to $9.8 million in 2012. Subsequent to year-end, the Company received dividend payments of 29.4 million Argentine pesos from MSC, which was equivalent to approximately $3.3 million based on foreign exchange rates at the date of the dividend receipts. | ||||||||
PROPERTY_AND_EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
PROPERTY AND EQUIPMENT | ' | |||||||
PROPERTY AND EQUIPMENT | ' | |||||||
NOTE 8 PROPERTY AND EQUIPMENT | ||||||||
As of December 31, 2013 and 2012, property and equipment consisted of the following: | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Trucks and trailers | $ | 1,041 | $ | 1,417 | ||||
Office furniture and equipment | 1,163 | 1,163 | ||||||
Drill rigs | 998 | 1,869 | ||||||
Building | 1,469 | 1,469 | ||||||
Land | 8,672 | 8,669 | ||||||
Mining equipment | 1,206 | 1,026 | ||||||
Construction in process | 3,894 | — | ||||||
Inactive milling equipment | — | 101 | ||||||
| | | | | | | | |
Subtotal | $ | 18,443 | $ | 15,714 | ||||
Less: accumulated depreciation | (3,300 | ) | (2,947 | ) | ||||
| | | | | | | | |
Total | $ | 15,143 | $ | 12,767 | ||||
| | | | | | | | |
| | | | | | | | |
The increase in property and equipment from December 31, 2012 to December 31, 2013 was mainly in relation to construction-in-process assets, which include advances the Company made to two suppliers for long-lead items for its El Gallo 2 project. These additions were partly offset by the sale of certain drill rigs in Argentina, and a number of vehicles in Nevada and Argentina. | ||||||||
Depreciation expense for 2013 was $0.9 million (2012—$1.0 million, 2011—$0.6 million). | ||||||||
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
INCOME TAXES | ' | ||||||||||
INCOME TAXES | ' | ||||||||||
NOTE 9 INCOME TAXES | |||||||||||
In various transactions entered into on February 21, 1992, as well as transactions during 2005, the Company had ownership changes, as is defined under the Internal Revenue Code ("IRC") Section 382 (g). Following the date of such ownership change, the tax net operating loss carryforwards and the investment tax credit carryforwards are subject to annual limitations under IRC Section 382. Except as noted below, the Company may receive delayed future benefits from net operating loss carryforwards or investment tax credit carryforwards existing as of the dates of the ownership change. At December 31, 2013 and 2012, the Company estimates tax loss carry forwards to be $303.3 million and $252.9 million, respectively expiring starting in 2014 and going through 2033. | |||||||||||
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2013 and 2012 respectively are presented below: | |||||||||||
2013 | 2012 | ||||||||||
(in thousands) | |||||||||||
Deferred tax assets: | |||||||||||
Alternative minimum tax (AMT) credit carryforward | $ | 41 | $ | 41 | |||||||
Net operating loss carryforward | 98,734 | 80,975 | |||||||||
Mineral Properties | 19,884 | 297 | |||||||||
Other temporary differences | 6,927 | 9,521 | |||||||||
Capital loss carryforward | 241 | 241 | |||||||||
| | | | | | | | ||||
Total gross deferred tax assets | 125,827 | 91,075 | |||||||||
Less: valuation allowance | (125,202 | ) | (90,477 | ) | |||||||
| | | | | | | | ||||
Net deferred tax assets | $ | 625 | $ | 598 | |||||||
| | | | | | | | ||||
Deferred tax liabilities: | |||||||||||
Reclamation obligation | 389 | 416 | |||||||||
Mineral Properties | — | — | |||||||||
Basis in Tonkin Springs Venture LP | (1,014 | ) | (1,014 | ) | |||||||
Acquisition related deferred tax liability | (158,855 | ) | (229,522 | ) | |||||||
| | | | | | | | ||||
Total deferred tax liabilities | $ | (159,480 | ) | $ | (230,120 | ) | |||||
| | | | | | | | ||||
Total net deferred tax liability | $ | (158,855 | ) | $ | (229,522 | ) | |||||
| | | | | | | | ||||
| | | | | | | | ||||
The Company believes that it is unlikely that the gross deferred tax asset will be realized. Therefore, a valuation allowance has been provided for most of the gross deferred tax assets. The change in valuation allowance of approximately $34.7 million primarily reflects an increase of net operating loss carryforwards. The deferred tax liability related to the Minera Andes acquisition was $101.5 million as at December 31, 2013 (2012—$156.8 million). | |||||||||||
On December 11, 2013, the Mexican government enacted a tax reform that increased the effective tax rate applicable to the Company's Mexican operations. The law, effective January 1, 2014, increased the future corporate income tax rate to 30%, created a 10% withholding tax on dividends paid to non-resident shareholders and created a new Extraordinary Mining duty which is equal to 0.5% of gross revenues from the sale of gold, silver and platinum. Furthermore, the reform introduced a Special Mining Duty of 7.5%. The Special Mining Duty is deductible for income tax purposes. The Special Mining Duty is generally applicable to earnings before income tax, depreciation, depletion, amortization and interest. There will be no deductions related to development type costs but exploration and prospecting costs are deductible when incurred. Certain undeducted exploration expenditures incurred prior to January 1, 2014 are also deductible in the calculation of the Special Mining Duty. | |||||||||||
A reconciliation of the tax provision for 2013, 2012 and 2011 at statutory U.S. Federal and State income tax rates to the actual tax provision recorded in the financial statements is comprised of the following components: | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands) | |||||||||||
US Federal and State tax recovery at statutory rate | $ | (68,377 | ) | $ | (31,925 | ) | $ | (21,098 | ) | ||
Reconciling items: | |||||||||||
Equity pickup in MSC | (2,924 | ) | (7,292 | ) | — | ||||||
Impact of Mexican tax reform | (1,921 | ) | — | — | |||||||
FIN 48 adjustment due to tax years becoming statute barred | — | — | (180 | ) | |||||||
Prior year true ups/acquisitions | (19,016 | ) | 781 | (8,074 | ) | ||||||
Adjustment for foreign tax rates | 8,680 | 3,245 | 1,342 | ||||||||
Tax rate changes | (187 | ) | (1,869 | ) | (24 | ) | |||||
Imputed interest | 171 | 135 | 119 | ||||||||
Other permanent differences | 22,090 | (3,259 | ) | 8,869 | |||||||
Unrealized foreign exchange rate (loss)/gain | (28,317 | ) | (21,263 | ) | (31 | ) | |||||
NOL expired | 1,711 | (2,696 | ) | 2,862 | |||||||
Valuation allowance | 34,725 | 36,899 | 16,035 | ||||||||
| | | | | | | | | | | |
Tax Recovery | $ | (53,365 | ) | $ | (27,244 | ) | $ | (180 | ) | ||
| | | | | | | | | | | |
| | | | | | | | | | | |
As at December 31, 2013, there are no unrecognized tax benefits. | |||||||||||
The Company or its subsidiaries file income tax returns in Canada, the United States, Mexico, and Argentina. These tax returns are subject to examination by local taxation authorities provided the tax years remain open to audit under the relevant statute of limitations. The following summarizes the open tax years by major jurisdiction: | |||||||||||
United States: 2010 to 2013 | |||||||||||
Canada: 2006 to 2013 | |||||||||||
Mexico: 2009 to 2013 | |||||||||||
Argentina: 2009 to 2013 | |||||||||||
SHAREHOLDERS_EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2013 | |
SHAREHOLDERS' EQUITY | ' |
SHAREHOLDERS' EQUITY | ' |
NOTE 10 SHAREHOLDERS' EQUITY | |
During the year ended December 31, 2013, the Company issued 48,000 shares of common stock upon exercise of stock options under the Equity Incentive Plan at a weighted average exercise price of $1.97 per share for proceeds of $94,720. The Company also issued 45,000 shares of common stock upon exercise of certain stock options the Company assumed as part of the Minera Andes Inc. acquisition, at a weighted average exercise price of C$1.80 per share for proceeds of $76,926. The Company also issued the final installment of 41,500 shares of common stock as payment for mining concessions in Mexico. In addition, the Company issued 1 million shares of common stock in January 2013, which was previously recorded as a liability of $3.8 million as at December 31, 2012, as part of the litigation settlement agreement with TNR Gold Corp. effective November 2012 with respect to the Los Azules Copper Project. The issuance of the shares resulted in the elimination of the liability in the first quarter of 2013. | |
During the third quarter of 2013, the Company entered into an agreement with one of its mining contractors to settle parts of its expected future account payables with shares of common stock of the Company, up to a maximum of 2,500,000 shares. The number of shares to be issued will be determined monthly, based on the amount payable by the Company for services rendered above a defined tonnage threshold, using the closing price quoted on active markets at the end of every month. The initial term of the agreement was six months, but the Company has renewed the agreement until July 31, 2014 under substantially similar terms and conditions. For the year ended December 31, 2013, the Company was required to issue approximately 90,300 common shares under this agreement. The fair value of this liability of $0.2 million is included in accounts payable and accrued liabilities on the Consolidated Balance Sheet as at December 31, 2013. It is expected that the shares will be issued in 2014. | |
During the year ended December 31, 2013, 51.1 million Exchangeable Shares were converted into common stock. At December 31, 2013, total outstanding Exchangeable Shares not exchanged and not owned by the Company or its subsidiaries totaled 32.2 million. These Exchangeable Shares were initially issued by the Company in connection with the acquisition of Minera Andes. The Exchangeable Shares, by virtue of the redemption and exchange rights attached to them and the provisions of certain voting and support agreements, provide the holders with the economic and voting rights that are, as nearly as practicable, equivalent to those of a holder of shares of common stock of the Company. Accordingly, remaining Exchangeable Shares are included as part of the consolidated share capital of the Company. | |
STOCK_BASED_COMPENSATION
STOCK BASED COMPENSATION | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
STOCK BASED COMPENSATION | ' | |||||||||||||||||||
STOCK BASED COMPENSATION | ' | |||||||||||||||||||
NOTE 11 STOCK BASED COMPENSATION | ||||||||||||||||||||
Effective March 17, 1989, the Company's Board of Directors adopted the U.S. Gold Corporation Non-Qualified Stock Option and Stock Grant Plan, or the "Plan." On October 3, 2005, the Board of Directors amended the Plan to provide for an increase in the number of authorized shares from 3.5 million to 5 million. The stockholders approved this amendment on November 14, 2005. | ||||||||||||||||||||
On October 19, 2006, the Board of Directors approved the amendment and restatement to the Plan to: | ||||||||||||||||||||
-1 | ||||||||||||||||||||
provide for the grant of incentive options under Section 422 of the Internal Revenue Code (the "Code"), which provide potential tax benefits to the recipients compared to non-qualified options; | ||||||||||||||||||||
-2 | ||||||||||||||||||||
increase the number of shares of common stock reserved for issuance under the US Gold Plan by 4 million, for a total of 9 million shares; | ||||||||||||||||||||
-3 | ||||||||||||||||||||
specify that no more than 1 million shares may be subject to grants of options to an individual in a calendar year; | ||||||||||||||||||||
-4 | ||||||||||||||||||||
provide that awards under the Plan can be granted to employees, consultants, advisors, and directors as the Board of Directors or committee administering the plan determines in its discretion and to provide that the committee may delegate to certain officers the authority to grant awards to certain employees (other than such officers), consultants and advisors; | ||||||||||||||||||||
-5 | ||||||||||||||||||||
provide for the grant of restricted stock; and | ||||||||||||||||||||
-6 | ||||||||||||||||||||
change the name of the Plan to US Gold Equity Incentive Plan. | ||||||||||||||||||||
The amendment and restatement of the Plan was approved at the Company's annual meeting of shareholders on November 30, 2006. Under the Plan, as approved by shareholders on November 30, 2006, a total of 9 million shares of common stock were reserved for issuance thereunder. On January 19, 2012, at a special meeting of shareholders, the Company's shareholders approved additional amendments to the Plan to, among other things, increase the number of shares of common stock reserved for issuance thereunder from 9 million to 13.5 million shares. | ||||||||||||||||||||
The following table summarizes information about stock options under the Plan outstanding at December 31, 2013: | ||||||||||||||||||||
Number of | Weighted | Weighted | Intrinsic | |||||||||||||||||
Shares | Average | Average | Value | |||||||||||||||||
Exercise | Remaining | |||||||||||||||||||
Price | Contractual | |||||||||||||||||||
Life (Years) | ||||||||||||||||||||
(in thousands, except per share and year data) | ||||||||||||||||||||
Balance at December 31, 2010 | 3,086 | $ | 2.02 | 7.6 | ||||||||||||||||
Granted | 947 | $ | 7.1 | |||||||||||||||||
Exercised | (163 | ) | $ | 2.52 | $ | 864 | ||||||||||||||
| | | | | | | | | | | | | | |||||||
Balance at December 31, 2011 | 3,870 | $ | 3.24 | 7.3 | ||||||||||||||||
Granted | 300 | $ | 5.8 | |||||||||||||||||
Exercised | (445 | ) | $ | 1.84 | $ | 596 | ||||||||||||||
Forfeited | (128 | ) | $ | 6.27 | ||||||||||||||||
Expired | (36 | ) | $ | 7.96 | ||||||||||||||||
| | | | | | | | | | | | | | |||||||
Balance at December 31, 2012 | 3,561 | $ | 3.47 | 6.6 | ||||||||||||||||
Granted | 1,728 | $ | 2.26 | |||||||||||||||||
Exercised | (48 | ) | $ | 1.97 | $ | 47 | ||||||||||||||
Forfeited | (400 | ) | $ | 4.57 | ||||||||||||||||
| | | | | | | | | | | | | | |||||||
Balance at December 31, 2013 | 4,841 | $ | 2.96 | 5.2 | $ | 1,190 | ||||||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
Exercisable at December 31, 2013 | 2,795 | $ | 2.83 | 5.3 | $ | 1,190 | ||||||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
Stock options have been granted to key employees, directors and others under the Plan. Options to purchase shares under the Plan were granted at or above market value as of the date of the grant. During the year ended December 31, 2013, the Company granted stock options to certain employees and directors for an aggregate of 1.7 million shares of common stock (2012—0.3 million, 2011—0.9 million) at a weighted average exercise price of $2.26 per share (2012—$5.80, 2011—$7.10). The options vest equally over a three-year period if the individual remains affiliated with the Company (subject to acceleration of vesting in certain events) and are exercisable for a period of 5 years (2012, 2011—10 years) from the date of issue. | ||||||||||||||||||||
The fair value of the options granted under the Plan was estimated at the date of grant, using the Black-Scholes Option Valuation Model, with the following weighted-average assumptions: | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
Risk-free interest rate | 0.50% to 0.86% | 0.97% | 1.74% to 2.33% | |||||||||||||||||
Dividend yield | n/a | n/a | n/a | |||||||||||||||||
Volatility factor of the expected market price of common stock | 66% to 69% | 75% | 90% to 100% | |||||||||||||||||
Weighted-average expected life of option | 3.5 years | 6.0 years | 6.6 years | |||||||||||||||||
Weighted-average grant date fair value | $1.02 | $3.80 | $4.86 | |||||||||||||||||
During the year ended December 31, 2013, the Company recorded stock option expense of $1.4 million (2012—$3.4 million, 2011—$2.7 million). As previously discussed in Note 3, Business Acquisition, the Company issued replacement stock options in connection with the Minera Andes acquisition and stock option expense related to these replacement stock options was $0.2 million for the year ended December 31, 2013 (2012—$1.3 million). | ||||||||||||||||||||
At December 31, 2013, there was $1.1 million of unrecognized compensation expense related to 2.0 million unvested stock options outstanding. This cost is expected to be recognized over a weighted-average period of approximately 1.4 years. | ||||||||||||||||||||
The following tables summarize information about stock options outstanding and exercisable at December 31, 2013 for the Company's Plan, the replacement options from the acquisition of Minera Andes in 2012, and the replacement options from the acquisition of Nevada Pacific Gold Ltd. in 2007. C$ refers to Canadian dollars. | ||||||||||||||||||||
McEwen Mining Inc. | ||||||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||||||
Range of Exercise Price | Number | Weighted | Weighted | Number | Weighted | Weighted | ||||||||||||||
Outstanding | Average | Average | Exercisable | Average | Average | |||||||||||||||
Exercise | Remaining | Exercise | Remaining | |||||||||||||||||
Price | Contractual | Price | Contractual | |||||||||||||||||
Life (Years) | Life (Years) | |||||||||||||||||||
$0.00 - $2.00 | 1,264,000 | $ | 1.02 | 5 | 1,264,000 | $ | 1.02 | 5 | ||||||||||||
$2.01 - $4.00 | 2,505,800 | $ | 2.37 | 4.5 | 887,800 | $ | 2.58 | 4.7 | ||||||||||||
$4.01 - $6.00 | 361,500 | $ | 5.67 | 7.3 | 161,500 | $ | 5.5 | 6.3 | ||||||||||||
$6.01 - $8.31 | 709,500 | $ | 7.14 | 7 | 481,501 | $ | 7.16 | 7 | ||||||||||||
Minera Andes Inc. | ||||||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||||||
Range of Exercise Price | Number | Weighted | Weighted | Number | Weighted | Weighted | ||||||||||||||
Outstanding | Average | Average | Exercisable | Average | Average | |||||||||||||||
Exercise | Remaining | Exercise | Remaining | |||||||||||||||||
Price | Contractual | Price | Contractual | |||||||||||||||||
Life (Years) | Life (Years) | |||||||||||||||||||
C$0.00 - C$1.50 | 40,500 | C$ | 1.47 | 1 | 40,500 | C$ | 1.47 | 1 | ||||||||||||
C$1.51 - C$2.00 | 45,000 | C$ | 1.62 | 0.9 | 45,000 | C$ | 1.62 | 0.9 | ||||||||||||
C$2.01 - C$2.50 | 369,150 | C$ | 2.27 | 1.6 | 369,150 | C$ | 2.27 | 1.6 | ||||||||||||
C$2.51 - C$3.00 | 45,000 | C$ | 2.51 | 1.6 | 45,000 | C$ | 2.51 | 1.6 | ||||||||||||
Nevada Pacific Gold Ltd. | ||||||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||||||
Range of Exercise Price | Number | Weighted | Weighted | Number | Weighted | Weighted | ||||||||||||||
Outstanding | Average | Average | Exercisable | Average | Average | |||||||||||||||
Exercise | Remaining | Exercise | Remaining | |||||||||||||||||
Price | Contractual | Price | Contractual | |||||||||||||||||
Life (Years) | Life (Years) | |||||||||||||||||||
C$0.00 - C$4.50 | 64,650 | C$ | 4.32 | 1.7 | 64,650 | C$ | 4.32 | 1.7 | ||||||||||||
C$4.51 - C$5.00 | 112,643 | C$ | 4.74 | 2.9 | 112,643 | C$ | 4.74 | 2.9 | ||||||||||||
C$5.01 - C$5.50 | 49,450 | C$ | 5.3 | 0.1 | 49,450 | C$ | 5.3 | 0.1 | ||||||||||||
C$5.51 - C$6.70 | 60,950 | C$ | 6.62 | 1.9 | 60,950 | C$ | 6.62 | 1.9 |
LOSS_PER_SHARE
LOSS PER SHARE | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
LOSS PER SHARE | ' | ||||||||||
LOSS PER SHARE | ' | ||||||||||
NOTE 12 LOSS PER SHARE | |||||||||||
Basic loss per common share is computed by dividing the net loss available to common shareholders by the weighted average number of common shares outstanding during the period. | |||||||||||
The computations for basic loss per common share for the years ended December 31, 2013, 2012 and 2011 are as follows: | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands, except per share) | |||||||||||
Net loss for the year | $ | (147,742 | ) | $ | (66,654 | ) | $ | (61,872 | ) | ||
Weighted average number of common shares | 297,041 | 261,223 | 147,692 | ||||||||
| | | | | | | | | | | |
Loss per common share | $ | (0.50 | ) | $ | (0.26 | ) | $ | (0.42 | ) | ||
| | | | | | | | | | | |
| | | | | | | | | | | |
Options to purchase 2.1 million shares of common stock (2012—1.6 million, 2011—1.1 million) at an average exercise price of $5.04 at December 31, 2013 (2012—$6.32, 2011—$7.15) were not included in the computation of diluted weighted average shares because their exercise price exceeded the average price of the Company's common stock for the year ended December 31, 2013. Other outstanding options to purchase 3.6 million shares of common stock (2012—2.9 million, 2011—5.0 million) were not included in the computation of diluted weighted average shares in the year ended December 31, 2013 because their effect would have been anti-dilutive. | |||||||||||
RENTAL_EXPENSE_COMMITMENTS_AND
RENTAL EXPENSE, COMMITMENTS AND CONTINGENCIES | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
RENTAL EXPENSE, COMMITMENTS AND CONTINGENCIES | ' | ||||||||||||||||
RENTAL EXPENSE, COMMITMENTS AND CONTINGENCIES | ' | ||||||||||||||||
NOTE 13 RENTAL EXPENSE, COMMITMENTS AND CONTINGENCIES | |||||||||||||||||
For the year ended December 31, 2013, the Company had rental expense under operating leases of $0.8 million (2012—$0.7 million; 2011—$0.1 million). | |||||||||||||||||
At December 31, 2013, the Company is obligated for the next five years under purchase commitments, long term leases covering office space, exploration expenditures, option payments on properties for the following minimum amounts: | |||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | |||||||||||||
(in thousands) | |||||||||||||||||
Lease Obligations | $ | 3,534 | $ | 3,563 | $ | 3,648 | $ | 4,097 | $ | 4,409 | |||||||
Purchase Commitments | 3,071 | 306 | — | — | — | ||||||||||||
| | | | | | | | | | | | | | | | | |
Total | $ | 6,605 | $ | 3,869 | $ | 3,648 | $ | 4,097 | $ | 4,409 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Lease obligations include a new lease agreement the Company entered into during 2013 for the relocation of its corporate office, with a term extending to 2024. Purchase commitments include $2.4 million that the Company expects to disburse in 2014 for the construction of the El Gallo 2 ball mill. During 2012, the Company had one option agreement which required a cash payment of $900,000 and the issuance of 249,000 shares of common stock over a period of 36 months, of which $750,000 and 207,500 shares has already been paid by the end of 2012. The final installment of cash and 41,500 shares was paid in the first quarter of 2013. | |||||||||||||||||
The Company has transferred its interest in several mining properties to third parties. The Company could remain potentially liable for environmental enforcement actions related to its prior ownership of such properties. However, the Company has no reasonable belief that any violation of relevant environmental laws or regulations has occurred regarding these transferred properties. | |||||||||||||||||
The Company's mining and exploration activities are subject to various laws and regulations governing the protection of the environment. These laws and regulations are continually changing and generally becoming more restrictive. The Company conducts its operations so as to protect public health and the environment, and believes its operations are materially in compliance with all applicable laws and regulations. The Company has made, and expects to make in the future, expenditures to comply with such laws and regulations. | |||||||||||||||||
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2013 | |
RELATED PARTY TRANSACTIONS | ' |
RELATED PARTY TRANSACTIONS | ' |
NOTE 14 RELATED PARTY TRANSACTIONS | |
Since the second quarter of 2010, an aircraft owned and operated by Lexam L.P. (of which Robert R. McEwen is a limited partner and beneficiary) has been made available to the Company in order to expedite business travel. In his role as Chairman and Chief Executive Officer of the Company, Mr. McEwen must travel extensively and frequently on short notice. | |
Mr. McEwen is able to charter the aircraft from Lexam L.P. at a preferential rate. The Company's independent board members have approved a policy whereby only the variable expenses of operating this aircraft for business related travel are eligible for reimbursement by the Company. The hourly amount that the Company has agreed to reimburse Lexam L.P. is under half the full cost per hour of operating the aircraft or equivalent hourly charter cost and in any event less than even Mr. McEwen's preferential charter rate. Where possible, trips also include other company personnel, both executives and non-executives, to maximize efficiency. The agreement was approved by the independent members of the Company's Board of Directors. | |
For the year ended December 31, 2013, the Company incurred and paid $0.2 million (2012—$0.3 million; 2011—$0.1 million) to Lexam L.P. for the use of this aircraft. | |
UNAUDITED_SUPPLEMENTARY_QUARTE
UNAUDITED SUPPLEMENTARY QUARTERLY INFORMATION | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
UNAUDITED SUPPLEMENTARY QUARTERLY INFORMATION | ' | |||||||||||||
UNAUDITED SUPPLEMENTARY QUARTERLY INFORMATION | ' | |||||||||||||
NOTE 15 UNAUDITED SUPPLEMENTARY QUARTERLY INFORMATION | ||||||||||||||
Adjustment for MSC Purchase Price Allocation | ||||||||||||||
In the fourth quarter of 2012, the Company finalized the purchase price allocation for the acquisition of MSC, and the estimated fair value of the investment in MSC was increased from the initial estimate of $225.0 million to $262.9 million. The adjustment affected the composition of the fair value allocation of the investment in MSC's assets, resulting in a reduction in the amortization reported for the first two quarters of 2012 and an increase for the third quarter of 2012. This adjustment is reflected in the 2012 quarterly information below. | ||||||||||||||
Adjustment for Rights Issue | ||||||||||||||
In December 2012, the Company completed a rights offering. As the rights offering contained a bonus element and the issue was offered to all existing shareholders, basic and diluted earnings were adjusted retroactively for the bonus element for all periods presented as at the time of the offering. The Company determined the bonus element to be an additional 10.6 million shares, which was added to the denominator used in computing basic and diluted earnings per share for the first three quarters of 2012 and for all four quarters of 2011. This adjustment is reflected in the 2012 and 2011 quarterly information below. | ||||||||||||||
The following table summarizes unaudited supplementary quarterly information for the years ended December 31, 2013, 2012, and 2011. | ||||||||||||||
Three Months Ended | ||||||||||||||
March 31, 2013 | June 30, 2013 | September 30, 2013 | December 31, 2013 | |||||||||||
(in thousands, except per share) | ||||||||||||||
Net (loss) income | $ | (10,982 | ) | $ | (128,681 | ) | $ | 3,264 | $ | (11,343 | ) | |||
Net (loss) income per share: | ||||||||||||||
Basic | $ | (0.04 | ) | $ | (0.43 | ) | $ | 0.01 | $ | (0.04 | ) | |||
Diluted | $ | (0.04 | ) | $ | (0.43 | ) | $ | 0.01 | $ | (0.04 | ) | |||
Weighted average shares outstanding: | ||||||||||||||
Basic | 296,778 | 297,097 | 297,125 | 297,159 | ||||||||||
Diluted | 296,778 | 297,097 | 297,899 | 297,159 | ||||||||||
Three Months Ended | ||||||||||||||
March 31, 2012 | June 30, 2012 | September 30, 2012 | December 31, 2012 | |||||||||||
(As Adjusted) | (As Adjusted) | (As Adjusted) | ||||||||||||
(in thousands, except per share) | ||||||||||||||
Net loss, as reported | $ | (19,202 | ) | $ | (21,251 | ) | $ | (2,583 | ) | $ | (26,285 | ) | ||
Adjustment for MSC Purchase Price Allocation | 1,851 | 887 | (71 | ) | — | |||||||||
| | | | | | | | | | | | | | |
Net loss, as adjusted | $ | (17,351 | ) | $ | (20,364 | ) | $ | (2,654 | ) | $ | (26,285 | ) | ||
Net loss per share: | ||||||||||||||
Basic and diluted, as reported | $ | (0.08 | ) | $ | (0.08 | ) | $ | (0.01 | ) | $ | (0.10 | ) | ||
Adjustment for MSC Purchase Price Allocation | 0.01 | 0.01 | — | — | ||||||||||
Adjustment for Rights Issue | — | — | — | — | ||||||||||
| | | | | | | | | | | | | | |
Basic and diluted, adjusted | $ | (0.07 | ) | $ | (0.07 | ) | $ | (0.01 | ) | $ | (0.10 | ) | ||
Weighted average shares outstanding: | ||||||||||||||
Basic and diluted, as reported | 233,994 | 268,009 | 268,373 | 274,295 | ||||||||||
Adjustment for Rights Issue | 10,646 | 10,646 | 10,646 | — | ||||||||||
| | | | | | | | | | | | | | |
Basic and diluted, adjusted | 244,640 | 278,655 | 279,019 | 274,295 | ||||||||||
Three Months Ended | ||||||||||||||
March 31, 2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | |||||||||||
(As Adjusted) | (As Adjusted) | (As Adjusted) | (As Adjusted) | |||||||||||
(in thousands, except per share) | ||||||||||||||
Net loss | $ | (8,734 | ) | $ | (13,154 | ) | $ | (23,680 | ) | $ | (16,304 | ) | ||
Net loss per share: | ||||||||||||||
Basic and diluted, as reported | $ | (0.07 | ) | $ | (0.09 | ) | $ | (0.17 | ) | $ | (0.12 | ) | ||
Adjustment for Rights Issue | 0.01 | 0.01 | 0.01 | 0.01 | ||||||||||
| | | | | | | | | | | | | | |
Basic and diluted, adjusted | $ | (0.06 | ) | $ | (0.08 | ) | $ | (0.16 | ) | $ | (0.11 | ) | ||
Weighted average shares outstanding: | ||||||||||||||
Basic and diluted, as reported | 128,914 | 139,646 | 139,725 | 139,753 | ||||||||||
Adjustment for Rights Issue | 10,646 | 10,646 | 10,646 | 10,646 | ||||||||||
| | | | | | | | | | | | | | |
Basic and diluted, adjusted | 139,560 | 150,292 | 150,371 | 150,399 |
OPERATING_SEGMENT_REPORTING
OPERATING SEGMENT REPORTING | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
OPERATING SEGMENT REPORTING | ' | ||||||||||||||||
OPERATING SEGMENT REPORTING | ' | ||||||||||||||||
NOTE 16 OPERATING SEGMENT REPORTING | |||||||||||||||||
McEwen Mining is a mining and minerals exploration company focused on precious metals in Argentina, Mexico and the United States. The Company identifies its reportable segments as those consolidated operations that are currently engaged in the exploration for and production of precious metals. Operations not actively engaged in the exploration for, or production of precious metals, are aggregated at the corporate level for segment reporting purposes. | |||||||||||||||||
For the year ended December 31, 2013 | |||||||||||||||||
Argentina | Mexico | U.S. | Corporate & | Total | |||||||||||||
Other | |||||||||||||||||
(in thousands) | |||||||||||||||||
For the year ended December 31, 2013 | |||||||||||||||||
Gold and silver sales | $ | — | $ | 45,982 | $ | — | $ | — | $ | 45,982 | |||||||
Production costs applicable to sales | — | 34,594 | — | — | 34,594 | ||||||||||||
Mine construction costs | — | 1,383 | — | — | 1,383 | ||||||||||||
Mine development costs | — | 847 | — | — | 847 | ||||||||||||
Exploration costs | 14,776 | 6,658 | 2,952 | 443 | 24,829 | ||||||||||||
Income on investment in Minera Santa Cruz S.A. (net of amortization) | (846 | ) | — | — | — | (846 | ) | ||||||||||
Impairment of investment in MSC | 95,878 | — | — | — | 95,878 | ||||||||||||
Impairment of mineral property interests and property and equipment | 27,729 | — | 35,234 | — | 62,963 | ||||||||||||
Loss (gain) on sale of assets | 316 | — | 6,430 | (3 | ) | 6,743 | |||||||||||
Operating loss | (139,784 | ) | (2,998 | ) | (47,422 | ) | (10,193 | ) | (200,397 | ) | |||||||
As at December 31, 2013 | |||||||||||||||||
Investment in Minera Santa Cruz S.A. | 212,947 | — | — | — | 212,947 | ||||||||||||
Mineral property interests | 458,203 | 11,984 | 172,781 | — | 642,968 | ||||||||||||
Total assets | 674,269 | 54,131 | 177,248 | 17,418 | 923,066 | ||||||||||||
For the year ended December 31, 2012 | |||||||||||||||||
Argentina | Mexico | U.S. | Corporate & | Total | |||||||||||||
Other | |||||||||||||||||
(in thousands) | |||||||||||||||||
Gold and silver sales | $ | — | $ | 5,966 | $ | — | $ | — | $ | 5,966 | |||||||
Production costs applicable to sales | — | 3,861 | — | — | 3,861 | ||||||||||||
Mine operating costs | — | 8,507 | — | — | 8,507 | ||||||||||||
Mine construction costs | — | 14,260 | — | — | 14,260 | ||||||||||||
Exploration costs | 25,091 | 15,918 | 5,060 | 1,110 | 47,179 | ||||||||||||
Income on investment in Minera Santa Cruz S.A. (net of amortization) (adjusted—note 15) | (20,835 | ) | — | — | — | (20,835 | ) | ||||||||||
Impairment of mineral property interests and property and equipment | 179 | 1,343 | 16,946 | — | 18,468 | ||||||||||||
Operating loss (adjusted—note 15) | (8,156 | ) | (43,417 | ) | (25,144 | ) | (14,688 | ) | (91,405 | ) | |||||||
As at December 31, 2012 | |||||||||||||||||
Investment in Minera Santa Cruz S.A. | 273,948 | — | — | — | 273,948 | ||||||||||||
Mineral property interests | 539,092 | 12,707 | 215,268 | — | 767,067 | ||||||||||||
Total assets | 825,047 | 47,359 | 220,148 | 58,383 | 1,150,937 | ||||||||||||
For the year ended December 31, 2011 | |||||||||||||||||
Argentina | Mexico | U.S. | Corporate & | Total | |||||||||||||
Other | |||||||||||||||||
(in thousands) | |||||||||||||||||
Mine construction costs | — | 1,745 | — | — | 1,745 | ||||||||||||
Exploration costs | — | 29,160 | 12,825 | 998 | 42,983 | ||||||||||||
Operating loss | — | (35,867 | ) | (15,412 | ) | (8,906 | ) | (60,185 | ) | ||||||||
As at December 31, 2011 | |||||||||||||||||
Mineral property interests | — | 12,750 | 232,704 | — | 245,454 | ||||||||||||
Total assets | — | 33,899 | 238,402 | 38,054 | 310,355 |
FAIR_VALUE_ACCOUNTING
FAIR VALUE ACCOUNTING | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||
FAIR VALUE ACCOUNTING | ' | ||||||||||||||||||
FAIR VALUE ACCOUNTING | ' | ||||||||||||||||||
NOTE 17 FAIR VALUE ACCOUNTING | |||||||||||||||||||
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 and 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). | ||||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||||||||||||||
The following tables set forth the fair value of the Company's assets and liabilities measured at fair value on a recurring basis (at least annually) by level within the fair value hierarchy as at December 31, 2013 and 2012. As required by accounting guidance, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. | |||||||||||||||||||
Fair Value as a December 31, 2013 | |||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||
(in thousands) | |||||||||||||||||||
Assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 24,321 | $ | 24,321 | $ | — | $ | — | |||||||||||
| | | | | | | | | | | | | | ||||||
$ | 24,321 | $ | 24,321 | $ | — | $ | — | ||||||||||||
| | | | | | | | | | | | | | ||||||
| | | | | | | | | | | | | | ||||||
Liabilities: | |||||||||||||||||||
Accounts payable and accrued liabilities | $ | 177 | $ | 177 | $ | — | $ | — | |||||||||||
| | | | | | | | | | | | | | ||||||
$ | 177 | $ | 177 | $ | — | $ | — | ||||||||||||
| | | | | | | | | | | | | | ||||||
| | | | | | | | | | | | | | ||||||
Fair Value as at December 31, 2012 | |||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||
(in thousands) | |||||||||||||||||||
Assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 70,921 | $ | 70,921 | $ | — | $ | — | |||||||||||
| | | | | | | | | | | | | | ||||||
$ | 70,921 | $ | 70,921 | $ | — | $ | — | ||||||||||||
| | | | | | | | | | | | | | ||||||
| | | | | | | | | | | | | | ||||||
Liabilities: | |||||||||||||||||||
Litigation settlement liability | 3,830 | 3,830 | — | — | |||||||||||||||
| | | | | | | | | | | | | | ||||||
$ | 3,830 | $ | 3,830 | $ | — | $ | — | ||||||||||||
| | | | | | | | | | | | | | ||||||
| | | | | | | | | | | | | | ||||||
The Company's cash and cash equivalents is classified within Level 1 of the fair value hierarchy because it is valued using quoted market prices. The carrying value of this balance approximates its fair value due to its short-term nature and historically negligible credit losses. The cash equivalent instruments that are valued based on quoted market prices in active markets are primarily money market securities. | |||||||||||||||||||
As at December 31, 2013, accounts payable included an accrual of $0.2 million for the fair value of approximately 90,300 shares of common stock that are required to be issued as part of the settlement of certain amounts due by the Company to one of its vendors, as discussed in Note 10, Shareholders' Equity. As the Company's stock is quoted on an active market, this liability is classified within Level 1 of the fair value hierarchy. | |||||||||||||||||||
The litigation settlement liability at December 31, 2012 represented the fair value of the 1,000,000 shares of the Company's common stock that were required to be issued as part of the settlement with TNR Gold Corp. Since the Company's common stock is quoted on an active market, the liability was classified within Level 1 of the fair value hierarchy. | |||||||||||||||||||
Assets and liabilities measured at fair value on a non-recurring basis | |||||||||||||||||||
In the second and fourth quarters of 2013, the Company recorded impairment charges related to certain of its mineral property interests in Nevada and Argentina, as well as its investment in MSC, as discussed in Notes 6 and 7, respectively. The estimated fair values of the Nevada and Argentina mineral property interests were determined using observed market values per acre in the respective regions. The estimated fair value of the Company's investment in MSC was determined using a discounted cash flow approach. | |||||||||||||||||||
The following table sets forth a summary of the quantitative and qualitative information related to the unobservable inputs used in the calculation of the Company's non-recurring Level 3 fair value measurements for the year ended December 31, 2013. | |||||||||||||||||||
Date of | Valuation Technique | Unobservable Input | Range / | ||||||||||||||||
Fair Value | Weighted Average | ||||||||||||||||||
Measurement | |||||||||||||||||||
Discount Rate | 10.00% | ||||||||||||||||||
Long Term Gold Price | $1,300 per ounce | ||||||||||||||||||
Investment in MSC | June 30, 2013 | Discounted cash flow | Long Term Silver Price | $22.75 per ounce | |||||||||||||||
Argentina Inflation Index | 10.00% | ||||||||||||||||||
United States Inflation Index | 1.70% | ||||||||||||||||||
The following non financial assets were measured at fair values on a non-recurring basis as part of the Company's impairment assessments during the year ended December 31, 2013. | |||||||||||||||||||
Date of Fair Value | Total | Level 1 | Level 2 | Level 3 | Total Loss | ||||||||||||||
Measurement | |||||||||||||||||||
(in thousands) | |||||||||||||||||||
Mineral property interests | |||||||||||||||||||
Telken Tenements(1) | June 30, 2013 | $ | 26,442 | $ | — | $ | — | $ | 26,442 | $ | 13,792 | ||||||||
Este Tenements(1) | June 30, 2013 | 5,337 | — | — | 5,337 | 2,784 | |||||||||||||
Piramides Tenements(1) | June 30, 2013 | 9,736 | — | — | 9,736 | 5,079 | |||||||||||||
Tobias Tenements(1) | June 30, 2013 | 11,645 | — | — | 11,645 | 6,074 | |||||||||||||
Limo Complex | December 31, 2013 | 23,438 | — | — | 23,438 | 19,450 | |||||||||||||
Other United States Properties | December 31, 2013 | 9,610 | — | — | 9,610 | 9,497 | |||||||||||||
Investment in MSC | June 30, 2013 | 176,282 | — | — | 176,282 | 95,878 | |||||||||||||
| | | | | | | | | | | | | | | | | | | |
$ | 262,490 | $ | — | $ | — | $ | 262,490 | $ | 152,554 | ||||||||||
| | | | | | | | | | | | | | | | | | | |
-1 | |||||||||||||||||||
The fair values for the Telken, Este, Piramides and Tobias Tenements were determined prior to the transfer of these properties to MSC as part of the vend-in agreement between the Company and Hochschild, as described in Note 6, Mineral Property Interests and Asset Retirement Obligations, and Note 7, Investment in Minera Santa Cruz S.A. ("MSC")—San José Mine. As at December 31, 2013, these tenements were transferred to MSC and were therefore not included in the Company's mineral property interests as at December 31, 2013. | |||||||||||||||||||
COMPARATIVE_FIGURES
COMPARATIVE FIGURES | 12 Months Ended |
Dec. 31, 2013 | |
COMPARATIVE FIGURES | ' |
COMPARATIVE FIGURES | ' |
NOTE 18 COMPARATIVE FIGURES | |
Certain prior year information was reclassified to conform with the current year's presentation. | |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
Use of Estimates | ' |
Use of Estimates: The Company's consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of the Company's consolidated financial statements requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and the related disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of expenses during the reporting period. The more significant areas requiring the use of management estimates and assumptions relate to environmental, reclamation and closure obligations; estimates of fair value for asset impairments; valuation allowances for deferred tax assets; reserves for contingencies and litigation; and estimates with respect to assumptions regarding stock-based compensation expense. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Actual results may differ significantly from these estimates. | |
Basis of Consolidation | ' |
Basis of Consolidation: The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Significant intercompany accounts and transactions have been eliminated. The functional currency of the majority of the Company's operations is the U.S. dollar. | |
Cash and Cash Equivalents | ' |
Cash and Cash Equivalents: The Company considers cash in banks, deposits in transit, and highly liquid term deposits with original maturities of three months or less to be cash and cash equivalents. Because of the short maturity of these instruments, the carrying amounts approximate their fair value. Restricted cash is excluded from cash and cash equivalents and is included in long-term assets. | |
Business Combinations | ' |
Business Combinations: The Company accounts for business combinations using the acquisition method of accounting pursuant to Accounting Standards Codification ("ASC") Topic 805, Business Combinations. The acquisition method requires the Company to determine the fair value of all acquired assets, including identifiable intangible assets, and all assumed liabilities. The fair value of the consideration paid is allocated to the underlying identifiable net assets, based on their respective estimated fair values and any excess is recorded as goodwill. | |
Determining the fair value of assets acquired and liabilities assumed requires management's judgment and the utilization of independent valuation experts, and often involves the use of significant estimates and assumptions, including assumptions with respect to future cash inflows and outflows, discount rates, and asset lives, among other items. Transaction costs are expensed as incurred and are reported on the acquisition costs line within the Consolidated Statements of Operations and Comprehensive Income (Loss). | |
Investments | ' |
Investments: The Company accounts for investments over which the Company exerts significant influence but does not control through majority ownership using the equity method of accounting pursuant to ASC Topic 323, Investments—Equity Method and Joint Ventures. Under this method, the Company's share of earnings and losses is included in the Consolidated Statement of Operations and Comprehensive Income (Loss) and the balance of the investment is adjusted by a like amount. Under the equity method, dividends received from an investee are recorded as decreases in the investment account, not as income. If and when there has been a loss in value that is other than a temporary decline, the carrying value is reduced to its fair value. | |
The Company accounts for its investment in marketable equity securities as available for sale securities in accordance with ASC guidance on accounting for certain investments in debt and equity securities. The Company periodically evaluates whether declines in fair values of its investments below the Company's carrying value are other-than-temporary in accordance with ASC guidance. Declines in fair value below the Company's carrying value deemed to be other-than-temporary are charged to earnings. | |
The Company accounts for its gold and silver bullion investments in accordance with ASC Topic 815. Since ASC Topic 815, Derivatives and Hedging, does not consider gold and silver to be readily convertible to cash, the Company carries these assets at the lower of cost or market. | |
IVA taxes receivable | ' |
IVA taxes receivable: In Mexico, value added taxes (IVA) are assessed on purchases of materials and services and sales of products. Businesses are generally entitled to recover the taxes they have paid related to purchases of materials and services, either as a refund or as a credit against future taxes payable. In Argentina, except at the San José mine, the Company expenses all IVA as their recoverability is uncertain. | |
Stockpiles, Material on Leach Pads, In-process Inventory, Precious Metals Inventory and Materials and Supplies | ' |
Stockpiles, Material on Leach Pads, In-process Inventory, Precious Metals Inventory and Materials and Supplies: Stockpiles, material on leach pads, in-process inventory, precious metals inventory and materials and supplies are carried at the lower of average cost or net realizable value. For accounting purposes, the Company achieved commercial production for the El Gallo 1 mine during the third quarter of 2012 after its initial gold pour in late September. Net realizable value represents the estimated future sales price of the product based on current and long-term metals prices, less the estimated costs to complete production and bring the product to sale. Write-downs of stockpiles, material on leach pads, in-process inventory, precious metals inventory and materials and supplies, resulting from net realizable value impairments, are reported as a component of production costs applicable to sales. The current portion of stockpiles, material on leach pad, in-process inventory and materials and supplies is determined based on the expected amounts to be processed within the next 12 months. Stockpiles, material on leach pads, in-process inventory and materials and supplies not expected to be processed within the next 12 months, if any, are classified as long-term. | |
Stockpiles represent mineralized material that has been extracted from the mine and is available for further processing. Stockpiles are measured by estimating the number of tonnes added and removed from the stockpile, an estimate of the contained metals (based on assay data) and the estimated metallurgical recovery rates. Costs are allocated to stockpiles based on relative values of material stockpiled and processed using current mining costs incurred up to the point of stockpiling the mineralized material. Material is removed from the stockpile at an average cost per tonne. Since the Company only achieved production for accounting purposes in September 2012, no value was allocated to stockpiles prior to the month of September 2012. | |
Mineralized material on leach pads is the ore that is placed on pads where it is treated with a chemical solution that dissolves the gold contained in the ore over a period of months. Costs are attributed to the ore on leach pads based on current mining costs incurred up to the point of placing the ore on the pad. Costs are removed from the leach pad based on the average cost per estimated recoverable ounce of gold on the leach pad as the gold is recovered. The estimates of recoverable gold on the leach pads are calculated from the quantities of ore placed on the leach pads (measured tons added to the leach pads), the grade of ore placed on the leach pads (based on assay data) and a recovery percentage. In general, leach pads recover between 50% and 95% of the recoverable ounces in the first year of leaching, declining each year thereafter until the leaching is complete. The cumulative metallurgical recovery rate for gold production at the El Gallo 1 mine from September 2012 (start of production) to December 31, 2013 was approximately 61%. Although the quantities of recoverable gold placed on the leach pads are reconciled by comparing the grades of ore placed on the pads to the quantities of gold 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 the engineering estimates are refined based on actual results over time. | |
In-process inventories represent materials that are currently in the process of being converted to a saleable product. The El Gallo 1 conversion process uses an Adsorption-Desorption-Recovery ("ADR") processing plant utilizing carbon columns for recovery. In-process material is measured based on assays of the material fed into the process and the projected recoveries of the respective plants. In-process inventories are valued at the average cost of the material fed into the process attributable to the source material coming from the mines, stockpiles and/or leach pads plus the in-process conversion costs incurred to that point in the process. | |
Precious metal inventories include gold and silver bullion that is unsold and held at the refinery and is valued at the lower of the average cost of the respective in-process inventories incurred prior to the refining process plus applicable refining costs, or net realizable value. | |
Materials and supplies inventories are comprised of chemicals, reagents and consumable parts used in drilling and other operating activities. They are valued at the lower of average cost or net realizable value. Cost includes applicable taxes and freight. | |
Proven and Probable Reserves | ' |
Proven and Probable Reserves: The definition of proven and probable reserves is set forth in the SEC Industry Guide 7. Proven reserves are reserves for which (a) quantity is computed from dimensions revealed in outcrops, trenches, workings or drill holes, grade and/or quality are computed from the results of detailed sampling and (b) the sites for inspection, sampling and measurement are spaced so closely and the geological character is so well defined that size, shape, depth and mineral content of the reserves are well-established. Probable reserves are reserves for which quantity and grade and/or quality are computed from information similar to that used for proven (measured) reserves, but the sites for inspection, sampling, and measurement are farther apart or are otherwise less adequately spaced. The degree of assurance, although lower than that for proven (measured) reserves, is high enough to assume continuity between points of observations. | |
As of December 31, 2013, except for the Company's 49% interest in the San José mine, none of the Company's properties contain resources that satisfy the definition of proven and probable reserves. | |
Property and Equipment | ' |
Property and Equipment: Except as described below for certain design, construction and development costs, expenditures for new facilities or equipment and expenditures that extend the useful lives of existing facilities or equipment are capitalized and recorded at cost. Depreciation is computed using the straight-line method with the exception of mining equipment. Office furniture, equipment and light vehicles are being depreciated over estimated economic lives ranging from 3 to 5 years. Trailers, heavy vehicles and other site equipment are being depreciated over estimated economic lives from 5 to 15 years. Buildings are being depreciated over an estimated economic life of 20 years. Certain types of equipment which have alternative uses or significant salvage value, may be capitalized without proven and probable reserves. If a project commences production, amortization and depletion of capitalized costs for such equipment would be computed on a unit-of-production basis over the estimated life of mine tonnes. Mining equipment is depreciated using the units-of-production method based on tonnes processed over the estimated total mine life tonnes. | |
Design, Construction, and Development Costs | ' |
Design, Construction, and Development Costs: Certain costs to design and construct mining and processing facilities may be incurred prior to establishing proven and probable reserves. The Company classifies the development of the El Gallo Complex as an exploration stage project since no proven or probable reserves have been established, and accordingly, substantially all costs, including design, engineering, construction, and installation of equipment are expensed as incurred. | |
Mine development costs include engineering and metallurgical studies, drilling and other related costs to delineate an ore body, the removal of overburden to initially expose an ore body at open pit surface mines and the building of access ways, shafts, lateral access, drifts, ramps and other infrastructure at underground mines. Development costs are capitalized when proven and probable reserves exist and the property is a commercially minable property. Mine development costs incurred either to develop new ore deposits, expand the capacity of operating mines, or to develop mine areas substantially in advance of current production are capitalized. Costs of start-up activities and costs incurred to maintain current production or to maintain assets on a standby basis are charged to operations as incurred. Costs of abandoned projects are charged to operations upon abandonment. All capitalized costs are amortized using the units of production method over the estimated life of the ore body based on recoverable ounces to be mined from proven and probable reserves. | |
As of December 31, 2013, except for the Company's 49% interest in the San José mine, development costs are not capitalized at any of the Company's properties, as no proven and probable reserves exist. | |
Mineral Property Interests | ' |
Mineral Property Interests: Mineral property interests include acquired interests in development and exploration stage properties, which are considered tangible assets. The amount capitalized relating to a mineral property interest represents its fair value at the time of acquisition, either as an individual asset purchase or as a part of a business combination. The value of mineral property interests is primarily driven by the nature and amount of mineralized material believed to be contained in the properties. When proven and probable reserves exist, the relevant capitalized costs and mineral property interests are to be charged to expense based on the units of production method and upon commencement of production. However, when a property does not contain mineralized material that satisfies the definition of proven and probable reserves, such as with the El Gallo 1 mine, the amortization of the capitalized costs and mineral property interests are charged to expense based on the straight-line method over the estimated useful life of the mine. | |
Impairment of Long-Lived Assets | ' |
Impairment of Assets: The Company reviews and evaluates its long-lived assets for impairment when events or changes in circumstances indicate that the related carrying amounts may not be recoverable. Recoverability is measured by comparing the undiscounted future net cash flows to the net book value. When the net book value exceeds future net undiscounted cash flows, an impairment loss is measured and recorded equal to the excess of the net book value over fair value. Mineral properties are monitored for impairment based on factors such as the Company's continued right to explore the area, exploration reports, assays, technical reports, drill results and its continued plans to fund exploration programs on the property. Except for the Company's 49% interest in the San José mine, the Company is unable to estimate undiscounted future net cash flows from its operations due to the absence of proven and probable reserves. As a result, the Company uses the market approach to estimate the fair value of the Nevada and Argentina exploration properties by using a combination of the observed market value per square mile in the region and an observed market value per ounce of mineralized material, and uses this measure to assess recoverability and impairment. For purposes of recognition and measurement of an impairment loss, the Company groups its properties by geological mineral complex, as this represents the lowest level at which the Company allocates its exploration spending independent of other assets and liabilities. | |
For the Company's 49% interest in the San José mine, an impairment loss is measured and recorded using a combined approach using a discounted cash flow model for the existing operations and a market approach for the fair value assessment of exploration land claims. Future cash flows are estimated based on quantities of recoverable minerals, expected gold and silver prices (considering current and historical prices, trends and related factors), production levels, operating costs, capital requirements and reclamation costs, all based on life-of-mine plans. The term "recoverable minerals" refers to the estimated amount of gold or other commodities that will be obtained after taking into account losses during ore processing and treatment. 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. The Company's estimates of future cash flows are based on numerous assumptions and it is possible that actual future cash flows will be significantly different than the estimates, as actual future quantities of recoverable minerals, gold, silver and other commodity prices, production levels and costs and capital are each subject to significant risks and uncertainties. | |
Asset Retirement Obligation | ' |
Asset Retirement Obligation: The Company records the fair value of a liability for an asset retirement obligation ("ARO") in the period that it is incurred if a reasonable estimate of fair value can be made. The associated asset retirement costs are capitalized as part of the carrying amount of the long-lived asset. Ongoing environmental and reclamation expenditures are debited against the ARO as incurred to the extent they relate to the ARO and to expense to the extent they do not. The fair value of AROs is measured by discounting the expected cash flows using a discount factor that reflects the credit-adjusted risk free rate of interest, while taking into account an inflation rate. The Company prepares estimates of the timing and amounts of expected cash flows when an ARO is incurred, which are updated to reflect changes in facts and circumstances. Changes in regulations or laws, any instances of non-compliance with laws or regulations that result in fines, or any unforeseen environmental contamination could result in a material impact to the amounts charged to earnings for reclamation and remediation. Significant judgments and estimates are made when estimating the fair value of AROs. Expected cash flows relating to AROs could occur over long periods of time and the assessment of the extent of environmental remediation work is highly subjective. Considering all of these factors that go into the determination of an ARO, the fair value of the AROs can materially change over time. | |
Revenue Recognition | ' |
Revenue Recognition: Revenue includes sales value received for the Company's principal products, gold and silver. The Company currently does not earn revenue from any products other than gold and silver. Revenue is recognized when title to gold and silver passes to the buyer and when collectability is reasonably assured. Title passes to the buyer based on terms of the sales contract. Product pricing is determined at the point revenue is recognized by reference to active and freely traded commodity markets, for example, the London Bullion Market for both gold and silver, in an identical form to the product sold. | |
The Company entered into a doré sales agreement, whereby the Company has the option to sell approximately 90% of the gold and silver contained in doré bars produced at the El Gallo Complex prior to the completion of refining by a third party refiner, which refining normally takes approximately 15 business days. | |
Royalty Expense | ' |
Royalty Expense: The Company has a net smelter return ("NSR") royalty agreement with a third party on all metal production from the El Gallo 1 mine and a portion of expected future metal production from the El Gallo 2 project. The terms of the royalty agreement stipulate that production up to 30,000 of gold and gold equivalent ounces are subject to a 1% NSR, production between 30,001 to 380,000 of gold and gold equivalent ounces are subject to a 3.5% NSR, and 1% thereafter. Currently the Company is subject to the 3.5% NSR. Under the terms of the royalty agreement, the royalty holder has the option to settle the NSR payment in cash or gold and gold equivalent ounces. The royalty holder has indicated a preference to settle the NSR payment in gold and gold equivalent ounces which would be calculated on the day the refiner credits the Company's metals account. Cumulatively, on a life-of-mine basis through to December 31, 2013, approximately 110,000 gold and gold equivalent ounces have been produced from mineralized material within the scope of the NSR agreement. Royalty expenses are included in Production Costs Applicable to Sales in the Statement of Operations and Comprehensive Income (Loss). | |
Property Holding Costs | ' |
Property Holding Costs: Holding costs to maintain a property on a care and maintenance basis are expensed in the period they are incurred. These costs include security and maintenance expenses, lease and claim fees and payments, and environmental monitoring and reporting costs. | |
Exploration Costs | ' |
Exploration Costs: Exploration costs include costs incurred to identify new mineral resources, evaluate potential resources, and convert mineral resources into proven and probable reserves. Exploration costs are expensed as incurred. | |
Foreign Currency | ' |
Foreign Currency: The functional currency for the Company's operations is the U.S. dollar. All monetary assets and liabilities denominated in a currency which is not the U.S. dollar are translated at current exchange rates at each balance sheet date and the resulting adjustments are included in a separate line item under other income (expense). Revenue and expense in foreign currencies are translated at the average exchange rates for the period. | |
Stock-Based Compensation | ' |
Stock-Based Compensation: The Company accounts for stock options at fair value as prescribed in ASC Section 718-20-25. The Company estimates the fair value of each stock option at the grant date by using the Black-Scholes option-pricing model and provides for expense recognition over the service period, if any, of the stock option. | |
Income Taxes | ' |
Income Taxes: The Company accounts for income taxes under ASC Section 740-10-25 using the liability method, recognizing certain temporary differences between the financial reporting basis of liabilities and assets and the related income tax basis for such liabilities and assets. This method generates either a net deferred income tax liability or asset for the Company, as measured by the statutory tax rates in effect. The Company derives the deferred income tax charge or benefit by recording the change in either the net deferred income tax liability or asset balance for the year. The Company records a valuation allowance against any portion of those deferred income tax assets when it believes, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred income tax asset will not be realized. | |
Comprehensive Income (Loss) | ' |
Comprehensive Income (Loss): In addition to net loss, comprehensive income (loss) includes all changes in equity during a period, such as cumulative unrecognized changes in fair value of marketable equity securities classified as available-for-sale or other investments. | |
Per Share Amounts | ' |
Per Share Amounts: Basic earnings or loss per share includes no dilution and is computed by dividing income or loss available to common shareholders by the weighted average number of common and exchangeable shares outstanding during the period. Diluted earnings or loss per share reflect the potential dilution of securities that could share in the earnings of the Company and are computed in accordance with the treasury stock method based on the average number of common shares and dilutive common share equivalents outstanding. In these financial statements, warrants and stock options are not considered in the computation of diluted earnings or loss per share as their inclusion would be anti-dilutive for the periods presented. | |
Fair Value of Financial Instruments | ' |
Fair Value of Financial Instruments: ASC Section 825-10-50 requires disclosure of fair value information about financial instruments. Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of December 31, 2013. | |
The carrying values of financial instruments approximate their fair values. These financial instruments include cash and cash equivalents, marketable equity securities, short-term investments, accounts payable and accrued liabilities. Fair values were assumed to approximate carrying values for these financial instruments since they are short term in nature and their carrying amounts approximate fair value or they are receivable or payable on demand. | |
BUSINESS_ACQUISITION_Tables
BUSINESS ACQUISITION (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
BUSINESS ACQUISITION | ' | ||||||||||
Schedule of allocation of the purchase price | ' | ||||||||||
The allocation of the purchase price, based on the estimated fair value of assets acquired and liabilities assumed on January 24, 2012, is summarized in the following table (in thousands): | |||||||||||
Fair Value | |||||||||||
Purchase price: | |||||||||||
Exchangeable shares of McEwen Mining-Minera Andes Acquisition Corp. | $ | 664,671 | |||||||||
Stock options to be exchanged for options of McEwen Mining Inc. | 3,175 | ||||||||||
| | | | | |||||||
$ | 667,846 | ||||||||||
| | | | | |||||||
| | | | | |||||||
Net assets acquired: | |||||||||||
Cash and cash equivalents | $ | 31,385 | |||||||||
Short-term investments | 4,952 | ||||||||||
Other current assets | 9,828 | ||||||||||
Inventories | 1,362 | ||||||||||
Mineral property interests | 539,092 | ||||||||||
Investment in Minera Santa Cruz S.A. | 262,883 | ||||||||||
Equipment | 1,647 | ||||||||||
Accounts payable | (5,323 | ) | |||||||||
Deferred income tax liability | (177,980 | ) | |||||||||
| | | | | |||||||
$ | 667,846 | ||||||||||
| | | | | |||||||
| | | | | |||||||
Schedule of pro forma results for the entity, had the acquisition been completed within the period | ' | ||||||||||
The following table sets forth on a pro forma basis, the results of operations for McEwen Mining, had the acquisition of Minera Andes been completed on January 1, 2012 and 2011 (in thousands): | |||||||||||
Year ended December 31, 2012 | McEwen Mining | Minera Andes(1) | Combined | ||||||||
Revenue | $ | 26,801 | $ | 4,979 | $ | 31,780 | |||||
Net (loss) income for the year | (66,654 | ) | 3,498 | (63,156 | ) | ||||||
Year ended December 31, 2011 | McEwen Mining | Minera Andes | Combined | ||||||||
Revenue | $ | — | $ | 44,982 | $ | 44,982 | |||||
Net (loss) income for the year | (61,872 | ) | 26,542 | (35,330 | ) | ||||||
-1 | |||||||||||
Year ended December 31, 2012 represents the results of Minera Andes' operations from January 1, 2012 through January 24, 2012, closing date of the acquisition. Beginning January 25, 2012, the results of Minera Andes' operations are included in McEwen Mining's consolidated financial statements. | |||||||||||
GOLD_AND_SILVER_BULLION_INVEST1
GOLD AND SILVER BULLION INVESTMENTS (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
GOLD AND SILVER BULLION INVESTMENTS | ' | |||||||||||||||||||
Schedule of gold and silver holdings | ' | |||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Gold | Silver | Gold | Silver | |||||||||||||||||
(dollars in thousands, | ||||||||||||||||||||
except ounces and per ounce) | ||||||||||||||||||||
Number of ounces | — | — | 793 | 24,969 | ||||||||||||||||
Average cost per ounce | n/a | n/a | $ | 1,278.63 | $ | 27.08 | ||||||||||||||
Total cost | $ | — | $ | — | $ | 1,014 | $ | 676 | ||||||||||||
Fair value per ounce | n/a | n/a | $ | 1,657.50 | $ | 29.95 | ||||||||||||||
Total fair value | $ | — | $ | — | $ | 1,314 | $ | 748 | ||||||||||||
Schedule of changes of gold and silver holdings | ' | |||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Gold | Silver | Total | Gold | Silver | Total | |||||||||||||||
(in thousands) | ||||||||||||||||||||
Opening Balance | $ | 1,014 | $ | 676 | $ | 1,690 | $ | 7,232 | $ | 15,578 | $ | 22,810 | ||||||||
Proceeds from sale | (988 | ) | (479 | ) | (1,467 | ) | (7,982 | ) | (15,854 | ) | (23,836 | ) | ||||||||
(Loss) gain on sale | (26 | ) | (197 | ) | (223 | ) | 1,764 | 1,311 | 3,075 | |||||||||||
Unrealized loss | — | — | — | — | (359 | ) | (359 | ) | ||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Ending Balance | $ | — | $ | — | $ | — | $ | 1,014 | $ | 676 | $ | 1,690 | ||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
INVENTORIES_Tables
INVENTORIES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
INVENTORIES | ' | |||||||
Schedule of inventories | ' | |||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Ore on leach pads | $ | 2,749 | $ | 685 | ||||
In-process inventory | 2,681 | 3,604 | ||||||
Stockpiles | 778 | 308 | ||||||
Precious metals | 1,300 | 1,322 | ||||||
Materials and supplies | 1,292 | 1,343 | ||||||
| | | | | | | | |
Inventories | $ | 8,800 | $ | 7,262 | ||||
| | | | | | | | |
| | | | | | | | |
MINERAL_PROPERTY_INTERESTS_AND1
MINERAL PROPERTY INTERESTS AND ASSET RETIREMENT OBLIGATIONS (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
MINERAL PROPERTY INTERESTS AND ASSET RETIREMENT OBLIGATIONS | ' | ||||||||||||
Schedule of impairment charges on mineral property | ' | ||||||||||||
Name of Property/Complex | Segment | 2013 | 2012 | 2011 | |||||||||
(in thousands) | |||||||||||||
Telken Tenements | Argentina | $ | 13,792 | $ | — | $ | — | ||||||
Este Tenements | Argentina | 2,784 | — | — | |||||||||
Piramides Tenements | Argentina | 5,079 | — | — | |||||||||
Tobias Tenements | Argentina | 6,074 | — | — | |||||||||
North Battle Mountain Complex | Nevada | — | 14,044 | — | |||||||||
West Battle Mountain Complex | Nevada | 6,287 | — | — | |||||||||
Limo Complex | Nevada | 19,450 | — | ||||||||||
Other United States Properties | Nevada | 9,497 | 2,902 | — | |||||||||
El Gallo 2 Properties | Mexico | — | 1,343 | — | |||||||||
Property, plant and equipment | Argentina | — | 179 | — | |||||||||
| | | | | | | | | | | | | |
Total impairment | $ | 62,963 | $ | 18,468 | $ | — | |||||||
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Summary of mineral property interests | ' | ||||||||||||
Name of Property/Complex | State/Province | Country | 2013 | 2012 | |||||||||
(in thousands) | |||||||||||||
Los Azules Copper Project | San Juan | Argentina | $ | 431,190 | $ | 431,190 | |||||||
Other San Juan Exploration Properties | San Juan | Argentina | 7,818 | 7,818 | |||||||||
Telken Tenements(1) | Santa Cruz | Argentina | — | 40,234 | |||||||||
Este Tenements(1) | Santa Cruz | Argentina | — | 8,121 | |||||||||
Piramides Tenements(1) | Santa Cruz | Argentina | — | 14,815 | |||||||||
Tobias Tenements(1) | Santa Cruz | Argentina | — | 17,719 | |||||||||
Cerro Mojon Tenements | Santa Cruz | Argentina | 1,971 | 1,971 | |||||||||
La Merced Tenements | Santa Cruz | Argentina | 1,891 | 1,891 | |||||||||
Cabeza de Vaca Tenements | Santa Cruz | Argentina | 877 | 877 | |||||||||
El Trumai Tenements | Santa Cruz | Argentina | 1,534 | 1,534 | |||||||||
Martes 13 Tenements | Santa Cruz | Argentina | 3,568 | 3,568 | |||||||||
Celestina Tenements | Santa Cruz | Argentina | 1,753 | 1,753 | |||||||||
Other Santa Cruz Exploration Properties | Santa Cruz | Argentina | 7,601 | 7,601 | |||||||||
Tonkin Complex | Nevada | United States | 51,946 | 51,989 | |||||||||
Gold Bar Complex | Nevada | United States | 77,012 | 77,012 | |||||||||
Limo Complex | Nevada | United States | 23,438 | 50,098 | |||||||||
North Battle Mountain Complex | Nevada | United States | 4,148 | 4,148 | |||||||||
East Battle Mountain Complex | Nevada | United States | 4,060 | 4,060 | |||||||||
West Battle Mountain Complex | Nevada | United States | 2,567 | 8,854 | |||||||||
Other United States Properties | Nevada | United States | 9,610 | 19,107 | |||||||||
El Gallo 1 Mine | Sinaloa | Mexico | 8,502 | 8,126 | |||||||||
El Gallo 2 Properties | Sinaloa | Mexico | 3,482 | 4,581 | |||||||||
| | | | | | | | | | | | ||
Total Mineral Property Interests | $ | 642,968 | $ | 767,067 | |||||||||
| | | | | | | | | | | | ||
| | | | | | | | | | | | ||
-1 | |||||||||||||
As at December 31, 2013, these tenements were transferred to MSC as part of the vend-in agreement described above and in Note 7, Investment in Minera Santa Cruz S.A. ("MSC")—San José Mine, and were therefore not included in the Company's mineral property interests as at December 31, 2013. | |||||||||||||
Schedule of changes in asset retirement obligations | ' | ||||||||||||
2013 | 2012 | ||||||||||||
(in thousands) | |||||||||||||
Asset retirement obligation liability—opening balance | $ | 6,359 | $ | 6,253 | |||||||||
Settlements | (60 | ) | (47 | ) | |||||||||
Accretion of liability | 461 | 447 | |||||||||||
Adjustment reflecting updated estimates | 487 | (294 | ) | ||||||||||
| | | | | | | | ||||||
Asset retirement obligation liability—ending balance | $ | 7,247 | $ | 6,359 | |||||||||
| | | | | | | | ||||||
| | | | | | | | ||||||
INVESTMENT_IN_MINERA_SANTA_CRU1
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE | ' | |||||||
Summary of MSC's financial information from operations | ' | |||||||
Year Ended | Period ended | |||||||
31-Dec-13 | 31-Dec-12 | |||||||
(in thousands) | ||||||||
Minera Santa Cruz S.A. (100%) | ||||||||
Sales | $ | 240,723 | $ | 290,848 | ||||
Production costs applicable to sales | (190,281 | ) | (155,915 | ) | ||||
Income from operations before extraordinary items | 4,338 | 51,634 | ||||||
Net income | 4,338 | 51,634 | ||||||
Portion attributable to McEwen Mining Inc. (49%) | ||||||||
Net income on investment in MSC | $ | 2,126 | $ | 25,301 | ||||
Amortization of fair value increments | (1,280 | ) | (4,466 | ) | ||||
| | | | | | | | |
Income on investment in MSC, net of amortization | $ | 846 | $ | 20,835 | ||||
| | | | | | | | |
| | | | | | | | |
Schedule of change in the entity's investment in MSC | ' | |||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Investment in MSC, beginning of the year | $ | 273,948 | $ | — | ||||
Fair value of investment in MSC from acquisition of Minera Andes | — | 262,883 | ||||||
Income from equity investment | 2,126 | 25,301 | ||||||
Amortization of fair value increments | (1,280 | ) | (4,466 | ) | ||||
Dividend distribution | (1,826 | ) | (9,770 | ) | ||||
Impairment of investment in MSC | (95,878 | ) | — | |||||
Contribution of Santa Cruz exploration properties, net of tax | 35,857 | — | ||||||
| | | | | | | | |
Investment in MSC, end of the year | $ | 212,947 | $ | 273,948 | ||||
| | | | | | | | |
| | | | | | | | |
PROPERTY_AND_EQUIPMENT_Tables
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
PROPERTY AND EQUIPMENT | ' | |||||||
Schedule of property and equipment | ' | |||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Trucks and trailers | $ | 1,041 | $ | 1,417 | ||||
Office furniture and equipment | 1,163 | 1,163 | ||||||
Drill rigs | 998 | 1,869 | ||||||
Building | 1,469 | 1,469 | ||||||
Land | 8,672 | 8,669 | ||||||
Mining equipment | 1,206 | 1,026 | ||||||
Construction in process | 3,894 | — | ||||||
Inactive milling equipment | — | 101 | ||||||
| | | | | | | | |
Subtotal | $ | 18,443 | $ | 15,714 | ||||
Less: accumulated depreciation | (3,300 | ) | (2,947 | ) | ||||
| | | | | | | | |
Total | $ | 15,143 | $ | 12,767 | ||||
| | | | | | | | |
| | | | | | | | |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
INCOME TAXES | ' | ||||||||||
Schedule of tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities | ' | ||||||||||
2013 | 2012 | ||||||||||
(in thousands) | |||||||||||
Deferred tax assets: | |||||||||||
Alternative minimum tax (AMT) credit carryforward | $ | 41 | $ | 41 | |||||||
Net operating loss carryforward | 98,734 | 80,975 | |||||||||
Mineral Properties | 19,884 | 297 | |||||||||
Other temporary differences | 6,927 | 9,521 | |||||||||
Capital loss carryforward | 241 | 241 | |||||||||
| | | | | | | | ||||
Total gross deferred tax assets | 125,827 | 91,075 | |||||||||
Less: valuation allowance | (125,202 | ) | (90,477 | ) | |||||||
| | | | | | | | ||||
Net deferred tax assets | $ | 625 | $ | 598 | |||||||
| | | | | | | | ||||
Deferred tax liabilities: | |||||||||||
Reclamation obligation | 389 | 416 | |||||||||
Mineral Properties | — | — | |||||||||
Basis in Tonkin Springs Venture LP | (1,014 | ) | (1,014 | ) | |||||||
Acquisition related deferred tax liability | (158,855 | ) | (229,522 | ) | |||||||
| | | | | | | | ||||
Total deferred tax liabilities | $ | (159,480 | ) | $ | (230,120 | ) | |||||
| | | | | | | | ||||
Total net deferred tax liability | $ | (158,855 | ) | $ | (229,522 | ) | |||||
| | | | | | | | ||||
| | | | | | | | ||||
Schedule of reconciliation of the tax provision at statutory U.S. Federal and State income tax rates to the actual tax provision recorded in the financial statement | ' | ||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands) | |||||||||||
US Federal and State tax recovery at statutory rate | $ | (68,377 | ) | $ | (31,925 | ) | $ | (21,098 | ) | ||
Reconciling items: | |||||||||||
Equity pickup in MSC | (2,924 | ) | (7,292 | ) | — | ||||||
Impact of Mexican tax reform | (1,921 | ) | — | — | |||||||
FIN 48 adjustment due to tax years becoming statute barred | — | — | (180 | ) | |||||||
Prior year true ups/acquisitions | (19,016 | ) | 781 | (8,074 | ) | ||||||
Adjustment for foreign tax rates | 8,680 | 3,245 | 1,342 | ||||||||
Tax rate changes | (187 | ) | (1,869 | ) | (24 | ) | |||||
Imputed interest | 171 | 135 | 119 | ||||||||
Other permanent differences | 22,090 | (3,259 | ) | 8,869 | |||||||
Unrealized foreign exchange rate (loss)/gain | (28,317 | ) | (21,263 | ) | (31 | ) | |||||
NOL expired | 1,711 | (2,696 | ) | 2,862 | |||||||
Valuation allowance | 34,725 | 36,899 | 16,035 | ||||||||
| | | | | | | | | | | |
Tax Recovery | $ | (53,365 | ) | $ | (27,244 | ) | $ | (180 | ) | ||
| | | | | | | | | | | |
| | | | | | | | | | | |
Tax years subject to examination in major tax jurisdictions | ' | ||||||||||
United States: 2010 to 2013 | |||||||||||
Canada: 2006 to 2013 | |||||||||||
Mexico: 2009 to 2013 | |||||||||||
Argentina: 2009 to 2013 | |||||||||||
STOCK_BASED_COMPENSATION_Table
STOCK BASED COMPENSATION (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
STOCK BASED COMPENSATION | ' | |||||||||||||||||||
Summary of information about stock options under the Plan | ' | |||||||||||||||||||
Number of | Weighted | Weighted | Intrinsic | |||||||||||||||||
Shares | Average | Average | Value | |||||||||||||||||
Exercise | Remaining | |||||||||||||||||||
Price | Contractual | |||||||||||||||||||
Life (Years) | ||||||||||||||||||||
(in thousands, except per share and year data) | ||||||||||||||||||||
Balance at December 31, 2010 | 3,086 | $ | 2.02 | 7.6 | ||||||||||||||||
Granted | 947 | $ | 7.1 | |||||||||||||||||
Exercised | (163 | ) | $ | 2.52 | $ | 864 | ||||||||||||||
| | | | | | | | | | | | | | |||||||
Balance at December 31, 2011 | 3,870 | $ | 3.24 | 7.3 | ||||||||||||||||
Granted | 300 | $ | 5.8 | |||||||||||||||||
Exercised | (445 | ) | $ | 1.84 | $ | 596 | ||||||||||||||
Forfeited | (128 | ) | $ | 6.27 | ||||||||||||||||
Expired | (36 | ) | $ | 7.96 | ||||||||||||||||
| | | | | | | | | | | | | | |||||||
Balance at December 31, 2012 | 3,561 | $ | 3.47 | 6.6 | ||||||||||||||||
Granted | 1,728 | $ | 2.26 | |||||||||||||||||
Exercised | (48 | ) | $ | 1.97 | $ | 47 | ||||||||||||||
Forfeited | (400 | ) | $ | 4.57 | ||||||||||||||||
| | | | | | | | | | | | | | |||||||
Balance at December 31, 2013 | 4,841 | $ | 2.96 | 5.2 | $ | 1,190 | ||||||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
Exercisable at December 31, 2013 | 2,795 | $ | 2.83 | 5.3 | $ | 1,190 | ||||||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
Schedule of weighted-average assumptions used for estimation of the fair value of the options granted under the Plan at the date of grant, using the Black-Scholes Option Valuation Model | ' | |||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
Risk-free interest rate | 0.50% to 0.86% | 0.97% | 1.74% to 2.33% | |||||||||||||||||
Dividend yield | n/a | n/a | n/a | |||||||||||||||||
Volatility factor of the expected market price of common stock | 66% to 69% | 75% | 90% to 100% | |||||||||||||||||
Weighted-average expected life of option | 3.5 years | 6.0 years | 6.6 years | |||||||||||||||||
Weighted-average grant date fair value | $1.02 | $3.80 | $4.86 | |||||||||||||||||
Minera Andes | ' | |||||||||||||||||||
Stock options outstanding and exercisable | ' | |||||||||||||||||||
Summary of information about stock options outstanding and exercisable | ' | |||||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||||||
Range of Exercise Price | Number | Weighted | Weighted | Number | Weighted | Weighted | ||||||||||||||
Outstanding | Average | Average | Exercisable | Average | Average | |||||||||||||||
Exercise | Remaining | Exercise | Remaining | |||||||||||||||||
Price | Contractual | Price | Contractual | |||||||||||||||||
Life (Years) | Life (Years) | |||||||||||||||||||
C$0.00 - C$1.50 | 40,500 | C$ | 1.47 | 1 | 40,500 | C$ | 1.47 | 1 | ||||||||||||
C$1.51 - C$2.00 | 45,000 | C$ | 1.62 | 0.9 | 45,000 | C$ | 1.62 | 0.9 | ||||||||||||
C$2.01 - C$2.50 | 369,150 | C$ | 2.27 | 1.6 | 369,150 | C$ | 2.27 | 1.6 | ||||||||||||
C$2.51 - C$3.00 | 45,000 | C$ | 2.51 | 1.6 | 45,000 | C$ | 2.51 | 1.6 | ||||||||||||
Nevada Pacific Gold Ltd. | ' | |||||||||||||||||||
Stock options outstanding and exercisable | ' | |||||||||||||||||||
Summary of information about stock options outstanding and exercisable | ' | |||||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||||||
Range of Exercise Price | Number | Weighted | Weighted | Number | Weighted | Weighted | ||||||||||||||
Outstanding | Average | Average | Exercisable | Average | Average | |||||||||||||||
Exercise | Remaining | Exercise | Remaining | |||||||||||||||||
Price | Contractual | Price | Contractual | |||||||||||||||||
Life (Years) | Life (Years) | |||||||||||||||||||
C$0.00 - C$4.50 | 64,650 | C$ | 4.32 | 1.7 | 64,650 | C$ | 4.32 | 1.7 | ||||||||||||
C$4.51 - C$5.00 | 112,643 | C$ | 4.74 | 2.9 | 112,643 | C$ | 4.74 | 2.9 | ||||||||||||
C$5.01 - C$5.50 | 49,450 | C$ | 5.3 | 0.1 | 49,450 | C$ | 5.3 | 0.1 | ||||||||||||
C$5.51 - C$6.70 | 60,950 | C$ | 6.62 | 1.9 | 60,950 | C$ | 6.62 | 1.9 | ||||||||||||
McEwen Mining Inc. | ' | |||||||||||||||||||
Stock options outstanding and exercisable | ' | |||||||||||||||||||
Summary of information about stock options outstanding and exercisable | ' | |||||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||||||
Range of Exercise Price | Number | Weighted | Weighted | Number | Weighted | Weighted | ||||||||||||||
Outstanding | Average | Average | Exercisable | Average | Average | |||||||||||||||
Exercise | Remaining | Exercise | Remaining | |||||||||||||||||
Price | Contractual | Price | Contractual | |||||||||||||||||
Life (Years) | Life (Years) | |||||||||||||||||||
$0.00 - $2.00 | 1,264,000 | $ | 1.02 | 5 | 1,264,000 | $ | 1.02 | 5 | ||||||||||||
$2.01 - $4.00 | 2,505,800 | $ | 2.37 | 4.5 | 887,800 | $ | 2.58 | 4.7 | ||||||||||||
$4.01 - $6.00 | 361,500 | $ | 5.67 | 7.3 | 161,500 | $ | 5.5 | 6.3 | ||||||||||||
$6.01 - $8.31 | 709,500 | $ | 7.14 | 7 | 481,501 | $ | 7.16 | 7 |
LOSS_PER_SHARE_Tables
LOSS PER SHARE (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
LOSS PER SHARE | ' | ||||||||||
Schedule of computation of basic per common share | ' | ||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands, except per share) | |||||||||||
Net loss for the year | $ | (147,742 | ) | $ | (66,654 | ) | $ | (61,872 | ) | ||
Weighted average number of common shares | 297,041 | 261,223 | 147,692 | ||||||||
| | | | | | | | | | | |
Loss per common share | $ | (0.50 | ) | $ | (0.26 | ) | $ | (0.42 | ) | ||
| | | | | | | | | | | |
| | | | | | | | | | | |
RENTAL_EXPENSE_COMMITMENTS_AND1
RENTAL EXPENSE, COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
RENTAL EXPENSE, COMMITMENTS AND CONTINGENCIES | ' | ||||||||||||||||
Schedule of minimum amounts under purchase commitments, long term leases covering office space, exploration expenditures, option payments on properties | ' | ||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | |||||||||||||
(in thousands) | |||||||||||||||||
Lease Obligations | $ | 3,534 | $ | 3,563 | $ | 3,648 | $ | 4,097 | $ | 4,409 | |||||||
Purchase Commitments | 3,071 | 306 | — | — | — | ||||||||||||
| | | | | | | | | | | | | | | | | |
Total | $ | 6,605 | $ | 3,869 | $ | 3,648 | $ | 4,097 | $ | 4,409 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
UNAUDITED_SUPPLEMENTARY_QUARTE1
UNAUDITED SUPPLEMENTARY QUARTERLY INFORMATION (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
UNAUDITED SUPPLEMENTARY QUARTERLY INFORMATION | ' | |||||||||||||
Summary of unaudited supplementary quarterly information | ' | |||||||||||||
Three Months Ended | ||||||||||||||
31-Mar-13 | 30-Jun-13 | 30-Sep-13 | 31-Dec-13 | |||||||||||
(in thousands, except per share) | ||||||||||||||
Net (loss) income | $ | (10,982 | ) | $ | (128,681 | ) | $ | 3,264 | $ | (11,343 | ) | |||
Net (loss) income per share: | ||||||||||||||
Basic | $ | (0.04 | ) | $ | (0.43 | ) | $ | 0.01 | $ | (0.04 | ) | |||
Diluted | $ | (0.04 | ) | $ | (0.43 | ) | $ | 0.01 | $ | (0.04 | ) | |||
Weighted average shares outstanding: | ||||||||||||||
Basic | 296,778 | 297,097 | 297,125 | 297,159 | ||||||||||
Diluted | 296,778 | 297,097 | 297,899 | 297,159 | ||||||||||
Three Months Ended | ||||||||||||||
March 31, 2012 | June 30, 2012 | September 30, 2012 | December 31, 2012 | |||||||||||
(As Adjusted) | (As Adjusted) | (As Adjusted) | ||||||||||||
(in thousands, except per share) | ||||||||||||||
Net loss, as reported | $ | (19,202 | ) | $ | (21,251 | ) | $ | (2,583 | ) | $ | (26,285 | ) | ||
Adjustment for MSC Purchase Price Allocation | 1,851 | 887 | (71 | ) | — | |||||||||
| | | | | | | | | | | | | | |
Net loss, as adjusted | $ | (17,351 | ) | $ | (20,364 | ) | $ | (2,654 | ) | $ | (26,285 | ) | ||
Net loss per share: | ||||||||||||||
Basic and diluted, as reported | $ | (0.08 | ) | $ | (0.08 | ) | $ | (0.01 | ) | $ | (0.10 | ) | ||
Adjustment for MSC Purchase Price Allocation | 0.01 | 0.01 | — | — | ||||||||||
Adjustment for Rights Issue | — | — | — | — | ||||||||||
| | | | | | | | | | | | | | |
Basic and diluted, adjusted | $ | (0.07 | ) | $ | (0.07 | ) | $ | (0.01 | ) | $ | (0.10 | ) | ||
Weighted average shares outstanding: | ||||||||||||||
Basic and diluted, as reported | 233,994 | 268,009 | 268,373 | 274,295 | ||||||||||
Adjustment for Rights Issue | 10,646 | 10,646 | 10,646 | — | ||||||||||
| | | | | | | | | | | | | | |
Basic and diluted, adjusted | 244,640 | 278,655 | 279,019 | 274,295 | ||||||||||
Three Months Ended | ||||||||||||||
March 31, 2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | |||||||||||
(As Adjusted) | (As Adjusted) | (As Adjusted) | (As Adjusted) | |||||||||||
(in thousands, except per share) | ||||||||||||||
Net loss | $ | (8,734 | ) | $ | (13,154 | ) | $ | (23,680 | ) | $ | (16,304 | ) | ||
Net loss per share: | ||||||||||||||
Basic and diluted, as reported | $ | (0.07 | ) | $ | (0.09 | ) | $ | (0.17 | ) | $ | (0.12 | ) | ||
Adjustment for Rights Issue | 0.01 | 0.01 | 0.01 | 0.01 | ||||||||||
| | | | | | | | | | | | | | |
Basic and diluted, adjusted | $ | (0.06 | ) | $ | (0.08 | ) | $ | (0.16 | ) | $ | (0.11 | ) | ||
Weighted average shares outstanding: | ||||||||||||||
Basic and diluted, as reported | 128,914 | 139,646 | 139,725 | 139,753 | ||||||||||
Adjustment for Rights Issue | 10,646 | 10,646 | 10,646 | 10,646 | ||||||||||
| | | | | | | | | | | | | | |
Basic and diluted, adjusted | 139,560 | 150,292 | 150,371 | 150,399 |
OPERATING_SEGMENT_REPORTING_Ta
OPERATING SEGMENT REPORTING (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
OPERATING SEGMENT REPORTING | ' | ||||||||||||||||
Schedule of operating segments | ' | ||||||||||||||||
For the year ended December 31, 2013 | |||||||||||||||||
Argentina | Mexico | U.S. | Corporate & | Total | |||||||||||||
Other | |||||||||||||||||
(in thousands) | |||||||||||||||||
For the year ended December 31, 2013 | |||||||||||||||||
Gold and silver sales | $ | — | $ | 45,982 | $ | — | $ | — | $ | 45,982 | |||||||
Production costs applicable to sales | — | 34,594 | — | — | 34,594 | ||||||||||||
Mine construction costs | — | 1,383 | — | — | 1,383 | ||||||||||||
Mine development costs | — | 847 | — | — | 847 | ||||||||||||
Exploration costs | 14,776 | 6,658 | 2,952 | 443 | 24,829 | ||||||||||||
Income on investment in Minera Santa Cruz S.A. (net of amortization) | (846 | ) | — | — | — | (846 | ) | ||||||||||
Impairment of investment in MSC | 95,878 | — | — | — | 95,878 | ||||||||||||
Impairment of mineral property interests and property and equipment | 27,729 | — | 35,234 | — | 62,963 | ||||||||||||
Loss (gain) on sale of assets | 316 | — | 6,430 | (3 | ) | 6,743 | |||||||||||
Operating loss | (139,784 | ) | (2,998 | ) | (47,422 | ) | (10,193 | ) | (200,397 | ) | |||||||
As at December 31, 2013 | |||||||||||||||||
Investment in Minera Santa Cruz S.A. | 212,947 | — | — | — | 212,947 | ||||||||||||
Mineral property interests | 458,203 | 11,984 | 172,781 | — | 642,968 | ||||||||||||
Total assets | 674,269 | 54,131 | 177,248 | 17,418 | 923,066 | ||||||||||||
For the year ended December 31, 2012 | |||||||||||||||||
Argentina | Mexico | U.S. | Corporate & | Total | |||||||||||||
Other | |||||||||||||||||
(in thousands) | |||||||||||||||||
Gold and silver sales | $ | — | $ | 5,966 | $ | — | $ | — | $ | 5,966 | |||||||
Production costs applicable to sales | — | 3,861 | — | — | 3,861 | ||||||||||||
Mine operating costs | — | 8,507 | — | — | 8,507 | ||||||||||||
Mine construction costs | — | 14,260 | — | — | 14,260 | ||||||||||||
Exploration costs | 25,091 | 15,918 | 5,060 | 1,110 | 47,179 | ||||||||||||
Income on investment in Minera Santa Cruz S.A. (net of amortization) (adjusted—note 15) | (20,835 | ) | — | — | — | (20,835 | ) | ||||||||||
Impairment of mineral property interests and property and equipment | 179 | 1,343 | 16,946 | — | 18,468 | ||||||||||||
Operating loss (adjusted—note 15) | (8,156 | ) | (43,417 | ) | (25,144 | ) | (14,688 | ) | (91,405 | ) | |||||||
As at December 31, 2012 | |||||||||||||||||
Investment in Minera Santa Cruz S.A. | 273,948 | — | — | — | 273,948 | ||||||||||||
Mineral property interests | 539,092 | 12,707 | 215,268 | — | 767,067 | ||||||||||||
Total assets | 825,047 | 47,359 | 220,148 | 58,383 | 1,150,937 | ||||||||||||
For the year ended December 31, 2011 | |||||||||||||||||
Argentina | Mexico | U.S. | Corporate & | Total | |||||||||||||
Other | |||||||||||||||||
(in thousands) | |||||||||||||||||
Mine construction costs | — | 1,745 | — | — | 1,745 | ||||||||||||
Exploration costs | — | 29,160 | 12,825 | 998 | 42,983 | ||||||||||||
Operating loss | — | (35,867 | ) | (15,412 | ) | (8,906 | ) | (60,185 | ) | ||||||||
As at December 31, 2011 | |||||||||||||||||
Mineral property interests | — | 12,750 | 232,704 | — | 245,454 | ||||||||||||
Total assets | — | 33,899 | 238,402 | 38,054 | 310,355 |
FAIR_VALUE_ACCOUNTING_Tables
FAIR VALUE ACCOUNTING (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||
FAIR VALUE ACCOUNTING | ' | ||||||||||||||||||
Schedule of assets and liabilities measured at fair value on a recurring basis by level within the fair value hierarchy | ' | ||||||||||||||||||
Fair Value as a December 31, 2013 | |||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||
(in thousands) | |||||||||||||||||||
Assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 24,321 | $ | 24,321 | $ | — | $ | — | |||||||||||
| | | | | | | | | | | | | | ||||||
$ | 24,321 | $ | 24,321 | $ | — | $ | — | ||||||||||||
| | | | | | | | | | | | | | ||||||
| | | | | | | | | | | | | | ||||||
Liabilities: | |||||||||||||||||||
Accounts payable and accrued liabilities | $ | 177 | $ | 177 | $ | — | $ | — | |||||||||||
| | | | | | | | | | | | | | ||||||
$ | 177 | $ | 177 | $ | — | $ | — | ||||||||||||
| | | | | | | | | | | | | | ||||||
| | | | | | | | | | | | | | ||||||
Fair Value as at December 31, 2012 | |||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||
(in thousands) | |||||||||||||||||||
Assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 70,921 | $ | 70,921 | $ | — | $ | — | |||||||||||
| | | | | | | | | | | | | | ||||||
$ | 70,921 | $ | 70,921 | $ | — | $ | — | ||||||||||||
| | | | | | | | | | | | | | ||||||
| | | | | | | | | | | | | | ||||||
Liabilities: | |||||||||||||||||||
Litigation settlement liability | 3,830 | 3,830 | — | — | |||||||||||||||
| | | | | | | | | | | | | | ||||||
$ | 3,830 | $ | 3,830 | $ | — | $ | — | ||||||||||||
| | | | | | | | | | | | | | ||||||
| | | | | | | | | | | | | | ||||||
Summary of the quantitative and qualitative information related to the unobservable inputs used in the calculation of the Company's non-recurring Level 3 fair value measurements | ' | ||||||||||||||||||
Date of | Valuation Technique | Unobservable Input | Range / | ||||||||||||||||
Fair Value | Weighted Average | ||||||||||||||||||
Measurement | |||||||||||||||||||
Discount Rate | 10.00% | ||||||||||||||||||
Long Term Gold Price | $1,300 per ounce | ||||||||||||||||||
Investment in MSC | 30-Jun-13 | Discounted cash flow | Long Term Silver Price | $22.75 per ounce | |||||||||||||||
Argentina Inflation Index | 10.00% | ||||||||||||||||||
United States Inflation Index | 1.70% | ||||||||||||||||||
Schedule of assets measured at fair value on a nonrecurring basis after initial recognition | ' | ||||||||||||||||||
Date of Fair Value | Total | Level 1 | Level 2 | Level 3 | Total Loss | ||||||||||||||
Measurement | |||||||||||||||||||
(in thousands) | |||||||||||||||||||
Mineral property interests | |||||||||||||||||||
Telken Tenements(1) | 30-Jun-13 | $ | 26,442 | $ | — | $ | — | $ | 26,442 | $ | 13,792 | ||||||||
Este Tenements(1) | 30-Jun-13 | 5,337 | — | — | 5,337 | 2,784 | |||||||||||||
Piramides Tenements(1) | 30-Jun-13 | 9,736 | — | — | 9,736 | 5,079 | |||||||||||||
Tobias Tenements(1) | 30-Jun-13 | 11,645 | — | — | 11,645 | 6,074 | |||||||||||||
Limo Complex | 31-Dec-13 | 23,438 | — | — | 23,438 | 19,450 | |||||||||||||
Other United States Properties | 31-Dec-13 | 9,610 | — | — | 9,610 | 9,497 | |||||||||||||
Investment in MSC | 30-Jun-13 | 176,282 | — | — | 176,282 | 95,878 | |||||||||||||
| | | | | | | | | | | | | | | | | | | |
$ | 262,490 | $ | — | $ | — | $ | 262,490 | $ | 152,554 | ||||||||||
| | | | | | | | | | | | | | | | | | | |
-1 | |||||||||||||||||||
The fair values for the Telken, Este, Piramides and Tobias Tenements were determined prior to the transfer of these properties to MSC as part of the vend-in agreement between the Company and Hochschild, as described in Note 6, Mineral Property Interests and Asset Retirement Obligations, and Note 7, Investment in Minera Santa Cruz S.A. ("MSC")—San José Mine. As at December 31, 2013, these tenements were transferred to MSC and were therefore not included in the Company's mineral property interests as at December 31, 2013. | |||||||||||||||||||
THE_COMPANY_Details
THE COMPANY (Details) (MSC) | Dec. 31, 2013 | Jan. 24, 2012 |
MSC | ' | ' |
THE COMPANY | ' | ' |
Ownership interest (as a percent) | 49.00% | 49.00% |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 16 Months Ended | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
El Gallo mine | Minimum | Maximum | |
Stockpiles, Material on Leach Pads, In-process Inventory, Precious Metals Inventory and Materials and Supplies | ' | ' | ' |
Recovery percentage of leach pads of the recoverable ounces in the first year of leaching | ' | 50.00% | 95.00% |
Cumulative metallurgical recovery rate for gold production (as a percent) | 61.00% | ' | ' |
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) | 12 Months Ended |
Dec. 31, 2013 | |
Stockpiles, Ore on Leach Pads, In-process Inventory, Precious Metals Inventory and Materials and Supplies: | ' |
Period for determining current portion of stockpiles, ore on leach pad, in-process inventory and materials and supplies | '12 months |
Period within which Stockpiles, ore on leach pads, in-process inventory and materials and supplies are not expected to be processed, classified as long-term | '12 months |
San Jose mine | ' |
Proven and Probable Reserves | ' |
Ownership interest (as a percent) | 49.00% |
SUMMARY_OF_SIGNIFICANT_ACCOUNT4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3) | 12 Months Ended |
Dec. 31, 2013 | |
Office furniture, equipment and light vehicles | Minimum | ' |
Property and Equipment | ' |
Estimated economic life | '3 years |
Office furniture, equipment and light vehicles | Maximum | ' |
Property and Equipment | ' |
Estimated economic life | '5 years |
Trailers, heavy vehicles and other site equipment | Minimum | ' |
Property and Equipment | ' |
Estimated economic life | '5 years |
Trailers, heavy vehicles and other site equipment | Maximum | ' |
Property and Equipment | ' |
Estimated economic life | '15 years |
Building | ' |
Property and Equipment | ' |
Estimated economic life | '20 years |
SUMMARY_OF_SIGNIFICANT_ACCOUNT5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 4) | 12 Months Ended |
Dec. 31, 2013 | |
Gold and Silver | El Gallo Complex | ' |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
Option to sell prior to the completion of refining (as a percent) | 90.00% |
Period of completion of refining | '15 days |
Gold and gold equivalents | El Gallo 1 mine and El Gall 2 project | NSR royalty agreement | ' |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
Net smelter return (as a percent) | 3.50% |
Quantity produced (in ounces) | 110,000 |
Gold and gold equivalents | El Gallo 1 mine and El Gall 2 project | Production up to 30000 ounces | NSR royalty agreement | ' |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
Net smelter return (as a percent) | 1.00% |
Gold and gold equivalents | El Gallo 1 mine and El Gall 2 project | Production up to 30000 ounces | NSR royalty agreement | Maximum | ' |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
Production quantity used to determine net smelter return | 30,000 |
Gold and gold equivalents | El Gallo 1 mine and El Gall 2 project | Production between 30001 to 380000 ounces | NSR royalty agreement | ' |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
Net smelter return (as a percent) | 3.50% |
Gold and gold equivalents | El Gallo 1 mine and El Gall 2 project | Production between 30001 to 380000 ounces | NSR royalty agreement | Minimum | ' |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
Production quantity used to determine net smelter return | 30,001 |
Gold and gold equivalents | El Gallo 1 mine and El Gall 2 project | Production between 30001 to 380000 ounces | NSR royalty agreement | Maximum | ' |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
Production quantity used to determine net smelter return | 380,000 |
Gold and gold equivalents | El Gallo 1 mine and El Gall 2 project | Production above 380000 ounces | NSR royalty agreement | ' |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
Net smelter return (as a percent) | 1.00% |
BUSINESS_ACQUISITION_Details
BUSINESS ACQUISITION (Details) (USD $) | Dec. 31, 2013 | Jan. 24, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2011 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | Minera Andes | Minera Andes | Minera Andes | Minera Andes | Minera Andes | |
Replacement options | Robert R. McEwen | Robert R. McEwen | ||||
BUSINESS ACQUISITION | ' | ' | ' | ' | ' | ' |
Exchange ratio | ' | 0.45 | ' | ' | ' | ' |
Exchangeable Shares received by shareholders of acquiree | ' | 127,331,498 | ' | ' | 38,700,000 | ' |
Shareholding of combined company by the then-existing McEwen Mining shareholders (as a percent) | ' | 52.00% | ' | ' | ' | ' |
Shareholding of combined company by former Minera Andes shareholders (as a percent) | ' | 48.00% | ' | ' | ' | ' |
Shareholding of combined company on a diluted basis by the then-existing McEwen Mining shareholders (as a percent) | ' | 53.00% | ' | ' | ' | ' |
Shareholding of combined company on a diluted basis by former Minera Andes shareholders (as a percent) | ' | 47.00% | ' | ' | ' | ' |
Percentage of shares of the company owned | ' | ' | ' | ' | ' | 25.00% |
Outstanding Exchangeable Shares not exchanged | 32,200,000 | ' | ' | ' | ' | 500,000 |
Ratio for exchange of exchangeable shares | ' | ' | 1 | ' | ' | ' |
Estimated fair value of the vested portion of the replacement options | ' | ' | ' | $3.20 | ' | ' |
BUSINESS_ACQUISITION_Details_2
BUSINESS ACQUISITION (Details 2) (USD $) | 12 Months Ended | 12 Months Ended | 3 Months Ended | 1 Months Ended | 0 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jan. 24, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2013 | Oct. 31, 2013 | Jan. 24, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | |
McEwen Mining (2011) | McEwen Mining (2012) | Minera Andes | Minera Andes | MSC | MSC | MSC | Santa Cruz exploration properties | Santa Cruz exploration properties | Minera Andes | Minera Andes | Minera Andes | Minera Andes | Minera Andes | |||||
Vend-in agreement | General and administrative expenses | Acquisition cost | ||||||||||||||||
MSC | ||||||||||||||||||
BUSINESS ACQUISITION | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Market price of common stock (in dollars per share) | ' | ' | ' | $5.22 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
BUSINESS ACQUISITION | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total transaction costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5,400,000 | $3,900,000 | $1,500,000 |
Purchase price: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exchangeable shares of McEwen Mining-Minera Andes Acquisition Corp. | ' | 664,671,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 664,671,000 | ' | ' | ' | ' |
Stock options to be exchanged for options of McEwen Mining Inc. | ' | 3,175,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,175,000 | ' | ' | ' | ' |
Purchase price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 667,846,000 | ' | ' | ' | ' |
Net assets acquired: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31,385,000 | ' | ' | ' | ' |
Short-term investments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,952,000 | ' | ' | ' | ' |
Other current assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,828,000 | ' | ' | ' | ' |
Inventories | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,362,000 | ' | ' | ' | ' |
Mineral property interests | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 539,092,000 | ' | ' | ' | ' |
Investment in Minera Santa Cruz S.A. | ' | ' | ' | ' | ' | ' | ' | ' | ' | 262,900,000 | 225,000,000 | ' | ' | 262,883,000 | ' | ' | ' | ' |
Equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,647,000 | ' | ' | ' | ' |
Accounts payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -5,323,000 | ' | ' | ' | ' |
Deferred income tax liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -177,980,000 | ' | ' | ' | ' |
Purchase price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 667,846,000 | ' | ' | ' | ' |
Excess of fair value over carrying value of the underlying assets for tax purposes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 508,500,000 | ' | ' | ' | ' |
Deferred income tax liability related to fluctuations in the foreign exchange rates | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 178,000,000 | ' | 156,900,000 | ' | ' |
Deferred income tax recovery related to fluctuations in foreign exchange rates | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 36,300,000 | ' | ' | ' |
Impairment charges | 62,963,000 | 18,468,000 | ' | ' | ' | ' | ' | ' | 95,878,000 | ' | ' | 27,700,000 | ' | ' | ' | ' | ' | ' |
Deferred income tax recovery | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,300,000 | ' | ' | ' | ' | ' | ' |
Carrying value of mineral property interest | 642,968,000 | 767,067,000 | 245,454,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 53,200,000 | ' | ' | ' | ' | ' |
Decrease in deferred tax liability related to properties transferred | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16,700,000 | ' | ' | ' | ' | ' |
Deferred income tax liability | 158,855,000 | 229,522,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 101,500,000 | ' | ' | ' |
Unaudited Pro Forma Results | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | 31,780,000 | 44,982,000 | ' | ' | 26,801,000 | 4,979,000 | 44,982,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net (loss) income for the year | ' | ($63,156,000) | ($35,330,000) | ' | ($61,872,000) | ($66,654,000) | $3,498,000 | $26,542,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
GOLD_AND_SILVER_BULLION_INVEST2
GOLD AND SILVER BULLION INVESTMENTS (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
GOLD AND SILVER BULLION INVESTMENTS | ' | ' | ' |
Total cost | ' | $1,690 | $22,810 |
Total fair value | ' | 2,062 | ' |
Changes in the Company's holdings of gold and silver | ' | ' | ' |
Opening Balance | 1,690 | 22,810 | ' |
Proceeds from sale | -1,467 | -23,836 | ' |
(Loss) gain on sale | -223 | 3,075 | 2,075 |
Unrealized loss | ' | -359 | -3,394 |
Ending Balance | ' | 1,690 | 22,810 |
Gold | ' | ' | ' |
GOLD AND SILVER BULLION INVESTMENTS | ' | ' | ' |
Number of ounces | ' | 793 | ' |
Average cost per ounce (in dollars per ounce) | 1,278.63 | 1,278.63 | ' |
Total cost | ' | 1,014 | ' |
Fair value per ounce (in dollars per ounce) | ' | 1,657.50 | ' |
Total fair value | ' | 1,314 | ' |
Changes in the Company's holdings of gold and silver | ' | ' | ' |
Opening Balance | 1,014 | 7,232 | ' |
Proceeds from sale | -988 | -7,982 | ' |
(Loss) gain on sale | -26 | 1,764 | ' |
Ending Balance | ' | 1,014 | ' |
Selling price per ounce (in dollars per ounce) | 1,245.70 | ' | ' |
Silver | ' | ' | ' |
GOLD AND SILVER BULLION INVESTMENTS | ' | ' | ' |
Number of ounces | ' | 24,969 | ' |
Average cost per ounce (in dollars per ounce) | 27.08 | 27.08 | ' |
Total cost | ' | 676 | ' |
Fair value per ounce (in dollars per ounce) | ' | 29.95 | ' |
Total fair value | ' | 748 | ' |
Changes in the Company's holdings of gold and silver | ' | ' | ' |
Opening Balance | 676 | 15,578 | ' |
Proceeds from sale | -479 | -15,854 | ' |
(Loss) gain on sale | -197 | 1,311 | ' |
Unrealized loss | ' | -359 | ' |
Ending Balance | ' | $676 | ' |
Selling price per ounce (in dollars per ounce) | 19.18 | ' | ' |
INVENTORIES_Details
INVENTORIES (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
INVENTORIES | ' | ' |
Ore on leach pads | $2,749 | $685 |
In-process inventory | 2,681 | 3,604 |
Stockpiles | 778 | 308 |
Precious metals | 1,300 | 1,322 |
Materials and supplies | 1,292 | 1,343 |
Inventories | $8,800 | $7,262 |
MINERAL_PROPERTY_INTERESTS_AND2
MINERAL PROPERTY INTERESTS AND ASSET RETIREMENT OBLIGATIONS (Details) (USD $) | 12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | 31-May-13 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Oct. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Nov. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | |
MSC | Argentina | Argentina | Mexico | Mexico | Mexico | Telken Tenements | Este Tenements | Piramides Tenements | Tobias Tenements | Property, plant and equipment | Other United States Properties | Other United States Properties | Other United States Properties | Other United States Properties | Limo Complex | Limo Complex | Limo Complex | Limo Complex | Limo Complex | El Gallo 1 mine | El Gallo 1 mine | El Gallo 1 mine | Tonkin property and El Gallo 1 mine portion of the El Gallo Complex | West Battle Mountain Complex | West Battle Mountain Complex | West Battle Mountain Complex | West Battle Mountain Complex | Exploration properties in Santa Cruz, Argentina | Exploration properties in Santa Cruz, Argentina | Exploration properties in Santa Cruz, Argentina | Mexico property interests | Other Argentina exploration properties in San Juan, Argentina | Other Argentina exploration properties in San Juan, Argentina | Cerro Mojon Tenements in Santa Cruz, Argentina | Cerro Mojon Tenements in Santa Cruz, Argentina | Los Azules Copper Project | Los Azules Copper Project | Telken Tenements in Santa Cruz, Argentina | Este Tenements in Santa Cruz, Argentina | Piramides Tenements in Santa Cruz, Argentina | Tobias Tenements in Santa Cruz, Argentina | La Merced Tenements in Santa Cruz, Argentina | La Merced Tenements in Santa Cruz, Argentina | Cabeza de Vaca Tenements in Santa Cruz, Argentina | Cabeza de Vaca Tenements in Santa Cruz, Argentina | El Trumai Tenements in Santa Cruz, Argentina | El Trumai Tenements in Santa Cruz, Argentina | Martes 13 Tenements in Santa Cruz, Argentina | Martes 13 Tenements in Santa Cruz, Argentina | Celestina Tenements in Santa Cruz, Argentina | Celestina Tenements in Santa Cruz, Argentina | Other Argentina exploration properties in Santa Cruz, Argentina | Other Argentina exploration properties in Santa Cruz, Argentina | North Battle Mountain Complex in Nevada, United States | North Battle Mountain Complex in Nevada, United States | North Battle Mountain Complex in Nevada, United States | North Battle Mountain Complex in Nevada, United States | North Battle Mountain Complex in Nevada, United States | East Battle Mountain Complex in Nevada, United States | East Battle Mountain Complex in Nevada, United States | Tonkin Complex | Tonkin Complex | Tonkin Complex | Tonkin Complex | Tonkin Complex | Gold Bar Complex | Gold Bar Complex | El Gallo in Mexico | El Gallo in Mexico | El Gallo in Mexico | El Gallo 2 Properties | El Gallo 2 Properties | El Gallo 2 Properties | Limo Complex and Other United States Properties | ||||
Argentina | Argentina | Argentina | Argentina | Argentina | Nevada | Nevada | Nevada | Sale agreement | Sale agreement | Gold equivalents | Item | Nevada | Vend-in agreement | Nevada | Option agreement | Option agreement | Asset retirement obligation | Asset retirement obligation | Asset retirement obligation | Asset retirement obligation | Asset retirement obligation | Asset retirement obligation | Mexico | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
oz | MSC | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mineral Property Interests | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Quantity produced (in ounces) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31,129 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of most significant properties subject to reclamation obligations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Undiscounted estimated reclamation costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash bonding for mineral properties in the United States | 5,183,000 | 5,183,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of mineral property interests and asset retirement obligations | 1,530,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Price of mineral property interests under the sale agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Carrying value of mineral property interest | 642,968,000 | 767,067,000 | 245,454,000 | ' | 458,203,000 | 539,092,000 | 11,984,000 | 12,707,000 | 12,750,000 | ' | ' | ' | ' | ' | 9,610,000 | 19,107,000 | ' | ' | 23,438,000 | 50,098,000 | ' | 7,200,000 | ' | 8,502,000 | 8,126,000 | ' | ' | 6,300,000 | 2,567,000 | 8,854,000 | ' | ' | ' | 53,200,000 | ' | 7,818,000 | 7,818,000 | 1,971,000 | 1,971,000 | 431,190,000 | 431,190,000 | 40,234,000 | 8,121,000 | 14,815,000 | 17,719,000 | 1,891,000 | 1,891,000 | 877,000 | 877,000 | 1,534,000 | 1,534,000 | 3,568,000 | 3,568,000 | 1,753,000 | 1,753,000 | 7,601,000 | 7,601,000 | 4,148,000 | 4,148,000 | ' | ' | ' | 4,060,000 | 4,060,000 | 51,946,000 | 51,989,000 | ' | ' | ' | 77,012,000 | 77,012,000 | ' | ' | ' | 4,581,000 | 3,482,000 | ' | ' |
Loss on sale of assets, net of tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss (gain) on sale of assets | 6,743,000 | -1,110,000 | -36,000 | ' | 316,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment charges | 62,963,000 | 18,468,000 | ' | 95,878,000 | 27,729,000 | 179,000 | ' | 1,343,000 | ' | 13,792,000 | 2,784,000 | 5,079,000 | 6,074,000 | 179,000 | 9,497,000 | 2,900,000 | 9,497,000 | 2,902,000 | 19,450,000 | ' | 19,450,000 | ' | ' | ' | ' | ' | ' | 6,300,000 | ' | ' | 6,287,000 | 27,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,044,000 | ' | 14,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,300,000 | ' | 1,343,000 | 28,900,000 |
Recovery of deferred income tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,500,000 | ' | ' | ' | ' | 2,200,000 | ' | ' | ' | ' | 2,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,100,000 |
Net impairment charge | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,100,000 | ' | ' | ' | ' | 25,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18,800,000 |
Option to earn interest in property after incurring specified cumulative project related expenditures (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 51.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cumulative project related expenditures to be incurred to earn interest in property | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Mineral property interest, carrying value before impairment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Implied value of the option agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred tax liability related to mineral properties transferred | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exploration and related expenditure costs | 24,829,000 | 47,179,000 | 42,983,000 | ' | 14,776,000 | 25,091,000 | 6,658,000 | 15,918,000 | 29,160,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of mineral property interests | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit adjusted risk free rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.70% | 8.70% | 8.70% | ' | ' | 6.40% | 6.40% | 6.40% | ' | ' | ' | ' |
Inflation rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | 3.00% | 3.00% | ' | ' | 3.80% | 3.80% | 3.80% | ' | ' | ' | ' |
Amortization of asset retirement obligations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Changes in the asset retirement obligations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Asset retirement obligation liability - opening balance | 6,359,000 | 6,253,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Settlements | -60,000 | -47,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accretion of liability | 461,000 | 447,000 | 524,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Adjustment reflecting updated estimates | 487,000 | -294,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Asset retirement obligation liability - ending balance | 7,247,000 | 6,359,000 | 6,253,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current portion of the asset retirement obligation | $1,392,000 | $130,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
INVESTMENT_IN_MINERA_SANTA_CRU2
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE (Details) (USD $) | 3 Months Ended | 11 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 24, 2012 |
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE | ' | ' | ' | ' | ' |
Impairment | ' | ' | $95,878 | ' | ' |
Income on investment in MSC, net of amortization | ' | ' | 846 | 20,835 | ' |
MSC | ' | ' | ' | ' | ' |
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE | ' | ' | ' | ' | ' |
Interest acquired (as a percent) | ' | 49.00% | ' | 49.00% | ' |
Impairment | 95,900 | ' | 95,878 | ' | ' |
Sales percentage | ' | 100.00% | 100.00% | ' | ' |
Sales | ' | 290,848 | 240,723 | ' | ' |
Production costs applicable to sales | ' | -155,915 | -190,281 | ' | ' |
Income from operations before extraordinary items | ' | 51,634 | 4,338 | ' | ' |
Net income | ' | 51,634 | 4,338 | ' | ' |
Ownership interest (as a percent) | ' | ' | 49.00% | ' | 49.00% |
Net income on investment in MSC | ' | 25,301 | 2,126 | 25,301 | ' |
Amortization of fair value increments | ' | -4,466 | -1,280 | -4,466 | ' |
Income on investment in MSC, net of amortization | ' | $20,835 | $846 | ' | ' |
INVESTMENT_IN_MINERA_SANTA_CRU3
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE (Details 2) (USD $) | 3 Months Ended | 11 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Change in the investment in MSC | ' | ' | ' | ' |
Investment in MSC, beginning of the year | ' | ' | $273,948 | ' |
Impairment of investment in MSC | ' | ' | -95,878 | ' |
Investment in MSC, end of the year | ' | ' | 212,947 | ' |
MSC | ' | ' | ' | ' |
Change in the investment in MSC | ' | ' | ' | ' |
Investment in MSC, beginning of the year | ' | ' | 273,948 | ' |
Fair value of investment in MSC from acquisition of Minera Andes | ' | 262,883 | ' | 262,883 |
Income from equity investment | ' | 25,301 | 2,126 | 25,301 |
Amortization of fair value increments | ' | -4,466 | -1,280 | -4,466 |
Dividend distribution | ' | ' | -1,826 | -9,770 |
Impairment of investment in MSC | -95,900 | ' | -95,878 | ' |
Contribution of Santa Cruz exploration properties, net of tax | ' | ' | 35,857 | ' |
Investment in MSC, end of the year | ' | $273,948 | $212,947 | $273,948 |
INVESTMENT_IN_MINERA_SANTA_CRU4
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE (Details 3) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Oct. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Oct. 31, 2013 | |
MSC | MSC | MSC | MSC | MSC | MSC | MSC | MSC | ||||
Vend-in agreement | Exploration properties in Santa Cruz, Argentina | Exploration properties in Santa Cruz, Argentina | Exploration properties in Santa Cruz, Argentina | Exploration properties in Santa Cruz, Argentina | |||||||
Item | Minimum | Maximum | Vend-in agreement | ||||||||
Item | |||||||||||
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity method investment, overstatement of income from prior year recorded in current period | ' | ' | ' | ' | $3,900,000 | ' | ' | ' | ' | ' | ' |
Entity's share of income in investee, overstatement of income from prior year recorded in current period | ' | ' | ' | ' | 1,900,000 | ' | ' | ' | ' | ' | ' |
Tax on mining real estate property (as a percent) | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' |
Tax payable | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | 3,000,000 | ' |
Impairment | 95,878,000 | ' | ' | 95,900,000 | ' | 95,878,000 | ' | ' | ' | ' | ' |
Deferred tax liability related to mineral properties transferred | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17,300,000 |
Net smelter return royalty payable (as a percent) | ' | ' | ' | ' | ' | ' | 2.00% | ' | ' | ' | ' |
Carrying value of mineral property interest | 642,968,000 | 767,067,000 | 245,454,000 | ' | ' | ' | ' | ' | ' | ' | 53,200,000 |
Loss (gain) on sale of assets | $6,743,000 | ($1,110,000) | ($36,000) | ' | ' | ' | ' | ' | ' | ' | $0 |
Area of property transferred | ' | ' | ' | ' | ' | ' | 82,700 | ' | ' | ' | 48,900 |
INVESTMENT_IN_MINERA_SANTA_CRU5
INVESTMENT IN MINERA SANTA CRUZ S.A. (''MSC'') - SAN JOSE MINE (Details 3) | 12 Months Ended | 3 Months Ended | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 |
USD ($) | USD ($) | USD ($) | MSC | MSC | MSC | MSC | MSC | |
USD ($) | USD ($) | USD ($) | Subsequent event | Subsequent event | ||||
USD ($) | ARS | |||||||
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE | ' | ' | ' | ' | ' | ' | ' | ' |
Current assets | $46,771 | $91,918 | ' | ' | $113,100 | ' | ' | ' |
Total assets | 923,066 | 1,150,937 | 310,355 | ' | 561,700 | ' | ' | ' |
Current liabilities | 11,189 | 25,195 | ' | ' | 66,700 | ' | ' | ' |
Total liabilities | 176,299 | 261,346 | ' | ' | 178,700 | ' | ' | ' |
Impairment of investment in Minera Santa Cruz S.A. | 95,878 | ' | ' | 95,900 | 95,878 | ' | ' | ' |
Dividend received | ' | ' | ' | ' | $1,826 | $9,770 | $3,300 | 29,400 |
PROPERTY_AND_EQUIPMENT_Details
PROPERTY AND EQUIPMENT (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
PROPERTY AND EQUIPMENT | ' | ' | ' |
Subtotal | $18,443 | $15,714 | ' |
Less: accumulated depreciation | -3,300 | -2,947 | ' |
Total | 15,143 | 12,767 | ' |
Depreciation expense | 942 | 1,033 | 577 |
El Gallo 2 project | ' | ' | ' |
PROPERTY AND EQUIPMENT | ' | ' | ' |
Number of drill rigs sold | 2 | ' | ' |
Trucks and trailers | ' | ' | ' |
PROPERTY AND EQUIPMENT | ' | ' | ' |
Subtotal | 1,041 | 1,417 | ' |
Office furniture and equipment | ' | ' | ' |
PROPERTY AND EQUIPMENT | ' | ' | ' |
Subtotal | 1,163 | 1,163 | ' |
Drill rigs | ' | ' | ' |
PROPERTY AND EQUIPMENT | ' | ' | ' |
Subtotal | 998 | 1,869 | ' |
Building | ' | ' | ' |
PROPERTY AND EQUIPMENT | ' | ' | ' |
Subtotal | 1,469 | 1,469 | ' |
Land | ' | ' | ' |
PROPERTY AND EQUIPMENT | ' | ' | ' |
Subtotal | 8,672 | 8,669 | ' |
Mining equipment | ' | ' | ' |
PROPERTY AND EQUIPMENT | ' | ' | ' |
Subtotal | 1,206 | 1,026 | ' |
Construction in process | ' | ' | ' |
PROPERTY AND EQUIPMENT | ' | ' | ' |
Subtotal | 3,894 | ' | ' |
Inactive milling equipment | ' | ' | ' |
PROPERTY AND EQUIPMENT | ' | ' | ' |
Subtotal | ' | $101 | ' |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
INCOME TAXES | ' | ' |
Tax loss carry forwards | $303,300,000 | $252,900,000 |
Deferred tax assets: | ' | ' |
Alternative minimum tax (AMT) credit carryforward | 41,000 | 41,000 |
Net operating loss carryforward | 98,734,000 | 80,975,000 |
Mineral properties | 19,884,000 | 297,000 |
Other temporary differences | 6,927,000 | 9,521,000 |
Capital loss carryforward | 241,000 | 241,000 |
Total gross deferred tax assets | 125,827,000 | 91,075,000 |
Less: valuation allowance | -125,202,000 | -90,477,000 |
Net deferred tax assets | 625,000 | 598,000 |
Deferred tax liabilities: | ' | ' |
Reclamation obligation | 389,000 | 416,000 |
Basis in Tonkin Springs Venture LP | -1,014,000 | -1,014,000 |
Acquisition related deferred tax liability | -158,855,000 | -229,522,000 |
Total deferred tax liabilities | -159,480,000 | -230,120,000 |
Total net deferred tax liability | -158,855,000 | -229,522,000 |
Valuation allowance | ' | ' |
Change in valuation allowance | 34,700,000 | ' |
Acquisition related deferred tax liability | ' | ' |
Acquisition related deferred tax liability for mineral properties | $101,500,000 | $156,800,000 |
INCOME_TAXES_Details_2
INCOME TAXES (Details 2) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jan. 02, 2014 | Dec. 31, 2013 |
MEXICO | MEXICO | ||||
INCOME TAXES | ' | ' | ' | ' | ' |
Foreign income tax rate (as a percent) | ' | ' | ' | 30.00% | ' |
Withholding tax on dividends paid to nonresident shareholders (as a percent) | ' | ' | ' | 10.00% | ' |
Extraordinary mining duty as a percentage of gross revenues from the sale of gold, silver and platinum | ' | ' | ' | 0.50% | ' |
Special mining duty (as a percent) | ' | ' | ' | 7.50% | ' |
Deductions related to development type costs | ' | ' | ' | $0 | ' |
US Federal and State tax recovery at statutory rate | -68,377 | -31,925 | -21,098 | ' | ' |
Reconciling items: | ' | ' | ' | ' | ' |
Equity pickup in MSC | -2,924 | -7,292 | ' | ' | ' |
Impact of Mexican tax reform | ' | ' | ' | ' | -1,921 |
FIN 48 adjustment due to tax years becoming statute barred | ' | ' | -180 | ' | ' |
Prior year true ups/acquisitions | -19,016 | 781 | -8,074 | ' | ' |
Adjustment for foreign tax rates | 8,680 | 3,245 | 1,342 | ' | ' |
Tax rate changes | -187 | -1,869 | -24 | ' | ' |
Imputed interest | 171 | 135 | 119 | ' | ' |
Other permanent differences | 22,090 | -3,259 | 8,869 | ' | ' |
Unrealized foreign exchange rate (loss)/gain | -28,317 | -21,263 | -31 | ' | ' |
NOL expired | 1,711 | -2,696 | 2,862 | ' | ' |
Valuation allowance | 34,725 | 36,899 | 16,035 | ' | ' |
Tax Recovery | -53,365 | -27,244 | -180 | ' | ' |
Unrecognized tax benefits | $0 | ' | ' | ' | ' |
SHAREHOLDERS_EQUITY_Details
SHAREHOLDERS' EQUITY (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 0 Months Ended | ||||
Jan. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | Jan. 24, 2012 | Jan. 24, 2012 | |
Item | USD ($) | USD ($) | USD ($) | Maximum | Litigation settlement agreement with respect to the Los Azules Copper Project | Minera Andes Inc. | Minera Andes Inc. | ||
Item | TNR | USD ($) | CAD | ||||||
USD ($) | |||||||||
Shares of common stock issued upon exercise of stock options | 1,000,000 | ' | 48,000 | 445,000 | 163,000 | ' | ' | 45,000 | 45,000 |
Litigation settlement liabilities | ' | ' | $200,000 | ' | ' | ' | ' | ' | ' |
Weighted average exercise price of stock options (in dollars per share) | ' | ' | $1.97 | $1.84 | $2.52 | ' | ' | ' | 1.8 |
Proceeds from exercise of stock options | ' | ' | 171,000 | 3,885,000 | 773,000 | ' | ' | 76,926 | ' |
Shares of common stock issued as payment for mining concessions in Mexico | ' | ' | 41,500 | ' | ' | ' | ' | ' | ' |
Settlement agreement regarding outstanding litigation | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Litigation settlement liability | ' | ' | ' | $3,830,000 | ' | ' | $3,800,000 | ' | ' |
Number of mining contractors with which the entity has entered into an agreement | ' | 1 | 1 | ' | ' | ' | ' | ' | ' |
Number of shares to be issued to settle parts of expected future account payables | ' | ' | ' | ' | ' | 2,500,000 | ' | ' | ' |
Initial term of the agreement | ' | ' | '6 months | ' | ' | ' | ' | ' | ' |
Number of shares required to be issued under the agreement | ' | ' | 90,300 | ' | ' | ' | ' | ' | ' |
Exchangeable shares converted into common stock | ' | ' | 51,100,000 | ' | ' | ' | ' | ' | ' |
Outstanding Exchangeable Shares not exchanged | ' | ' | 32,200,000 | ' | ' | ' | ' | ' | ' |
STOCK_BASED_COMPENSATION_Detai
STOCK BASED COMPENSATION (Details) | 0 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||||||||||||
Oct. 19, 2006 | Jan. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Jan. 19, 2012 | Oct. 03, 2005 | Oct. 02, 2005 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2011 | Jan. 24, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Minimum | Minimum | Maximum | Maximum | Minera Andes | Minera Andes | Minera Andes | Certain employees and directors | Certain employees and directors | Certain employees and directors | |||||
CAD | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ||||||||||||||
STOCK BASED COMPENSATION | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares of common stock reserved for issuance | 9,000,000 | ' | ' | ' | ' | ' | 13,500,000 | 5,000,000 | 3,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares increased under the US Gold Plan | 4,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum number of shares that may be subject to grants of options to an individual in a calendar year | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the period (in shares) | ' | 3,561,000 | 3,561,000 | 3,870,000 | 3,086,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in shares) | ' | ' | 1,728,000 | 300,000 | 947,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,700,000 | 300,000 | 900,000 |
Exercised (in shares) | ' | -1,000,000 | -48,000 | -445,000 | -163,000 | ' | ' | ' | ' | ' | ' | ' | ' | -45,000 | ' | ' | ' | ' | ' |
Forfeited (in shares) | ' | ' | -400,000 | -128,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expired (in shares) | ' | ' | ' | -36,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the end of the period (in shares) | ' | ' | 4,841,000 | 3,561,000 | 3,870,000 | 3,086,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable at the end of the period (in shares) | ' | ' | 2,795,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Exercise Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the period (in dollars per share) | ' | $3.47 | $3.47 | $3.24 | $2.02 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in dollars per share) | ' | ' | $2.26 | $5.80 | $7.10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2.26 | $5.80 | $7.10 |
Exercised (in dollars per share) | ' | ' | $1.97 | $1.84 | $2.52 | ' | ' | ' | ' | ' | ' | ' | ' | 1.8 | ' | ' | ' | ' | ' |
Forfeited (in dollars per share) | ' | ' | $4.57 | $6.27 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expired (in dollars per share) | ' | ' | ' | $7.96 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the end of the period (in dollars per share) | ' | ' | $2.96 | $3.47 | $3.24 | $2.02 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable (in dollars per share) | ' | ' | $2.83 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Remaining Contractual Life | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the end of the period | ' | ' | '5 years 2 months 12 days | '6 years 7 months 6 days | '7 years 3 months 18 days | '7 years 7 months 6 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable at the end of the period | ' | ' | '5 years 3 months 18 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intrinsic Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercised (in dollars) | ' | ' | $47,000 | $596,000 | $864,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the end of the period (in dollars) | ' | ' | 1,190,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable at the end of the period (in dollars) | ' | ' | 1,190,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options granted (in shares) | ' | ' | 1,728,000 | 300,000 | 947,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,700,000 | 300,000 | 900,000 |
Exercise price of options granted (in dollars per share) | ' | ' | $2.26 | $5.80 | $7.10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2.26 | $5.80 | $7.10 |
Vesting period of options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' |
Exercise period of options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | '10 years | '10 years |
Principal assumptions used in applying the Black-Scholes option pricing model for the awards | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Risk-free interest rate (as a percent) | ' | ' | ' | 0.97% | ' | ' | ' | ' | ' | 0.50% | 1.74% | 0.86% | 2.33% | ' | ' | ' | ' | ' | ' |
Volatility factor of the expected market price of common stock (as a percent) | ' | ' | ' | 75.00% | ' | ' | ' | ' | ' | 66.00% | 90.00% | 69.00% | 100.00% | ' | ' | ' | ' | ' | ' |
Weighted-average expected life of option | ' | ' | '3 years 6 months | '6 years | '6 years 7 months 6 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average grant date fair value (in dollars per share) | ' | ' | $1.02 | $3.80 | $4.86 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock option expense | ' | ' | 1,400,000 | 3,400,000 | 2,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | 1,300,000 | ' | ' | ' |
Additional disclosures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation expense on non-vested stock options (in dollars) | ' | ' | $1,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-vested stock options outstanding (in shares) | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average period of recognition | ' | ' | '1 year 4 months 24 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
STOCK_BASED_COMPENSATION_Detai1
STOCK BASED COMPENSATION (Details 2) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
$0.00-$2.00 | $2.01-$4.00 | $4.01-$6.00 | $6.01-$8.31 | C$0.00-C$1.50 | C$1.51-C$2.00 | C$2.01-C$2.50 | C$2.51-C$3.00 | C$0.00-C$4.50 | C$4.51-C$5.00 | C$5.01-C$5.50 | C$5.51-C$6.70 | |
McEwen Mining Inc. | McEwen Mining Inc. | McEwen Mining Inc. | McEwen Mining Inc. | Minera Andes Inc. | Minera Andes Inc. | Minera Andes Inc. | Minera Andes Inc. | Nevada Pacific Gold Ltd. | Nevada Pacific Gold Ltd. | Nevada Pacific Gold Ltd. | Nevada Pacific Gold Ltd. | |
USD ($) | USD ($) | USD ($) | USD ($) | CAD | CAD | CAD | CAD | CAD | CAD | CAD | CAD | |
Stock options outstanding and exercisable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Range of Exercise Price, low end of range (in dollars per share) | $0 | $2.01 | $4.01 | $6.01 | 0 | 1.51 | 2.01 | 2.51 | 0 | 4.51 | 5.01 | 5.51 |
Range of Exercise Price, high end of range (in dollars per share) | $2 | $4 | $6 | $8.31 | 1.5 | 2 | 2.5 | 3 | 4.5 | 5 | 5.5 | 6.7 |
Options Outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number Outstanding (in shares) | 1,264,000 | 2,505,800 | 361,500 | 709,500 | 40,500 | 45,000 | 369,150 | 45,000 | 64,650 | 112,643 | 49,450 | 60,950 |
Weighted Average Exercise Price (in dollars per share) | $1.02 | $2.37 | $5.67 | $7.14 | 1.47 | 1.62 | 2.27 | 2.51 | 4.32 | 4.74 | 5.3 | 6.62 |
Weighted Average Remaining Contractual Life | '5 years | '4 years 6 months | '7 years 3 months 18 days | '7 years | '1 year | '10 months 24 days | '1 year 7 months 6 days | '1 year 7 months 6 days | '1 year 8 months 12 days | '2 years 10 months 24 days | '1 month 6 days | '1 year 10 months 24 days |
Options Exercisable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number Exercisable (in shares) | 1,264,000 | 887,800 | 161,500 | 481,501 | 40,500 | 45,000 | 369,150 | 45,000 | 64,650 | 112,643 | 49,450 | 60,950 |
Weighted Average Exercise Price (in dollars per share) | $1.02 | $2.58 | $5.50 | $7.16 | 1.47 | 1.62 | 2.27 | 2.51 | 4.32 | 4.74 | 5.3 | 6.62 |
Weighted Average Remaining Contractual Life | '5 years | '4 years 8 months 12 days | '6 years 3 months 18 days | '7 years | '1 year | '1 year 10 months 24 days | '1 year 7 months 6 days | '1 year 7 months 6 days | '1 year 8 months 12 days | '10 months 24 days | '1 month 6 days | '1 year 10 months 24 days |
LOSS_PER_SHARE_Details
LOSS PER SHARE (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
LOSS PER SHARE | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net loss for the year | ($11,343) | $3,264 | ($128,681) | ($10,982) | ($26,285) | ($2,654) | ($20,364) | ($17,351) | ($16,304) | ($23,680) | ($13,154) | ($8,734) | ($147,742) | ($66,654) | ($61,872) |
Weighted average number of common shares | 297,159,000 | 297,125,000 | 297,097,000 | 296,778,000 | ' | ' | ' | ' | ' | ' | ' | ' | 297,041,000 | 261,223,000 | 147,692,000 |
Loss per common share (in dollars per share) | ($0.04) | $0.01 | ($0.43) | ($0.04) | ' | ' | ' | ' | ' | ' | ' | ' | ($0.50) | ($0.26) | ($0.42) |
Options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average exercise price of options outstanding (in dollars per share) | $5.04 | ' | ' | ' | $6.32 | ' | ' | ' | $7.15 | ' | ' | ' | $5.04 | $6.32 | $7.15 |
Options outstanding not included in the computation of diluted weighted average shares because their effect would have been anti-dilutive (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,100,000 | 1,600,000 | 1,100,000 |
Other options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options outstanding not included in the computation of diluted weighted average shares because their effect would have been anti-dilutive (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,600,000 | 2,900,000 | 5,000,000 |
RENTAL_EXPENSE_COMMITMENTS_AND2
RENTAL EXPENSE, COMMITMENTS AND CONTINGENCIES (Details) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | 36 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 | Dec. 31, 2012 | |
El Gallo 2 Properties | Mining Concessions | Mining Concessions | Mining Concessions | Mining Concessions | ||||
Item | ||||||||
RENTAL EXPENSE, COMMITMENTS AND CONTINGENCIES | ' | ' | ' | ' | ' | ' | ' | ' |
Rental expense | $800,000 | $700,000 | $100,000 | ' | ' | ' | ' | ' |
Lease Obligation | ' | ' | ' | ' | ' | ' | ' | ' |
2014 | 3,534,000 | ' | ' | ' | ' | ' | ' | ' |
2015 | 3,563,000 | ' | ' | ' | ' | ' | ' | ' |
2016 | 3,648,000 | ' | ' | ' | ' | ' | ' | ' |
2017 | 4,097,000 | ' | ' | ' | ' | ' | ' | ' |
2018 | 4,409,000 | ' | ' | ' | ' | ' | ' | ' |
Purchase Commitments | ' | ' | ' | ' | ' | ' | ' | ' |
2014 | 3,071,000 | ' | ' | ' | ' | ' | ' | ' |
2015 | 306,000 | ' | ' | ' | ' | ' | ' | ' |
Total | ' | ' | ' | ' | ' | ' | ' | ' |
2014 | 6,605,000 | ' | ' | ' | ' | ' | ' | ' |
2015 | 3,869,000 | ' | ' | ' | ' | ' | ' | ' |
2016 | 3,648,000 | ' | ' | ' | ' | ' | ' | ' |
2017 | 4,097,000 | ' | ' | ' | ' | ' | ' | ' |
2018 | 4,409,000 | ' | ' | ' | ' | ' | ' | ' |
Option agreements to purchase mineral concessions | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase commitment expected to be disbursed in 2014 | ' | ' | ' | 2,400,000 | ' | ' | ' | ' |
Number of options agreement Company entered into to purchase mineral concessions in Mexico | ' | ' | ' | ' | ' | ' | 1 | ' |
Total cash commitment | ' | ' | ' | ' | ' | 900,000 | ' | ' |
Total shares committed to be issued | ' | ' | ' | ' | ' | 249,000 | ' | 249,000 |
Period to acquire Mexico mining concessions, minimum | ' | ' | ' | ' | ' | '36 months | ' | ' |
Cash already paid under the Mexico mining concessions option agreements | $150,000 | $712,000 | $10,059,000 | ' | ' | ' | ' | $750,000 |
Shares issued under the Mexico mining concessions option agreements | 41,500 | ' | ' | ' | 41,500 | ' | ' | 207,500 |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details) (Lexam L.P., USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Lexam L.P. | ' | ' | ' |
RELATED PARTY TRANSACTIONS | ' | ' | ' |
Amount of expenses incurred and paid | $0.20 | $0.30 | $0.10 |
UNAUDITED_SUPPLEMENTARY_QUARTE2
UNAUDITED SUPPLEMENTARY QUARTERLY INFORMATION (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Unaudited supplementary quarterly information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net (loss) income | ($11,343) | $3,264 | ($128,681) | ($10,982) | ($26,285) | ($2,654) | ($20,364) | ($17,351) | ($16,304) | ($23,680) | ($13,154) | ($8,734) | ($147,742) | ($66,654) | ($61,872) |
Net (loss) income per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic (in dollars per share) | ($0.04) | $0.01 | ($0.43) | ($0.04) | ' | ' | ' | ' | ' | ' | ' | ' | ($0.50) | ($0.26) | ($0.42) |
Diluted (in dollars per share) | ($0.04) | $0.01 | ($0.43) | ($0.04) | ' | ' | ' | ' | ' | ' | ' | ' | ($0.50) | ($0.26) | ($0.42) |
Basic and diluted (in dollars per share) | ' | ' | ' | ' | ($0.10) | ($0.01) | ($0.07) | ($0.07) | ($0.11) | ($0.16) | ($0.08) | ($0.06) | ' | ' | ' |
Weighted average shares outstanding: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic (in shares) | 297,159 | 297,125 | 297,097 | 296,778 | ' | ' | ' | ' | ' | ' | ' | ' | 297,041 | 261,223 | 147,692 |
Diluted (in shares) | 297,159 | 297,899 | 297,097 | 296,778 | ' | ' | ' | ' | ' | ' | ' | ' | 297,041 | 261,223 | 147,692 |
Weighted average shares outstanding - basic and diluted | ' | ' | ' | ' | 274,295 | 279,019 | 278,655 | 244,640 | 150,399 | 150,371 | 150,292 | 139,560 | ' | ' | ' |
MSC | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unaudited supplementary quarterly information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated fair value of the investment in MSC | ' | ' | ' | ' | 262,900 | 225,000 | ' | ' | ' | ' | ' | ' | ' | 262,900 | ' |
Reported | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unaudited supplementary quarterly information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net (loss) income | ' | ' | ' | ' | -26,285 | -2,583 | -21,251 | -19,202 | ' | ' | ' | ' | ' | ' | ' |
Net (loss) income per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic and diluted (in dollars per share) | ' | ' | ' | ' | ($0.10) | ($0.01) | ($0.08) | ($0.08) | ($0.12) | ($0.17) | ($0.09) | ($0.07) | ' | ' | ' |
Weighted average shares outstanding: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average shares outstanding - basic and diluted | ' | ' | ' | ' | 274,295 | 268,373 | 268,009 | 233,994 | 139,753 | 139,725 | 139,646 | 128,914 | ' | ' | ' |
Adjustment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unaudited supplementary quarterly information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net (loss) income | ' | ' | ' | ' | ' | ($71) | $887 | $1,851 | ' | ' | ' | ' | ' | ' | ' |
Net (loss) income per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic and diluted (in dollars per share) | ' | ' | ' | ' | ' | ' | $0.01 | $0.01 | $0.01 | $0.01 | $0.01 | $0.01 | ' | ' | ' |
Weighted average shares outstanding: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average shares outstanding - basic and diluted | ' | ' | ' | ' | ' | 10,646 | 10,646 | 10,646 | 10,646 | 10,646 | 10,646 | 10,646 | ' | ' | ' |
OPERATING_SEGMENT_REPORTING_De
OPERATING SEGMENT REPORTING (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Operating Segment Reporting | ' | ' | ' |
Gold and silver sales | $45,982 | $5,966 | ' |
Production costs applicable to sales | 34,594 | 3,861 | ' |
Mine construction costs | 1,383 | 14,260 | 1,745 |
Mine development and operating costs | 847 | 8,507 | ' |
Exploration costs | 24,829 | 47,179 | 42,983 |
Income on investment in Minera Santa Cruz S.A., net of amortization | -846 | -20,835 | ' |
Impairment of investment in MSC | 95,878 | ' | ' |
Impairment of mineral property interests and property and equipment | 62,963 | 18,468 | ' |
Loss (gain) on sale of assets | 6,743 | -1,110 | -36 |
Operating loss | -200,397 | -91,405 | -60,185 |
Investment in Minera Santa Cruz S.A. | 212,947 | 273,948 | ' |
Mineral property interests | 642,968 | 767,067 | 245,454 |
Total assets | 923,066 | 1,150,937 | 310,355 |
Argentina | ' | ' | ' |
Operating Segment Reporting | ' | ' | ' |
Exploration costs | 14,776 | 25,091 | ' |
Income on investment in Minera Santa Cruz S.A., net of amortization | -846 | -20,835 | ' |
Impairment of investment in MSC | 95,878 | ' | ' |
Impairment of mineral property interests and property and equipment | 27,729 | 179 | ' |
Loss (gain) on sale of assets | 316 | ' | ' |
Operating loss | -139,784 | -8,156 | ' |
Investment in Minera Santa Cruz S.A. | 212,947 | 273,948 | ' |
Mineral property interests | 458,203 | 539,092 | ' |
Total assets | 674,269 | 825,047 | ' |
Mexico | ' | ' | ' |
Operating Segment Reporting | ' | ' | ' |
Gold and silver sales | 45,982 | 5,966 | ' |
Production costs applicable to sales | 34,594 | 3,861 | ' |
Mine construction costs | 1,383 | 14,260 | 1,745 |
Mine development and operating costs | 847 | 8,507 | ' |
Exploration costs | 6,658 | 15,918 | 29,160 |
Impairment of mineral property interests and property and equipment | ' | 1,343 | ' |
Operating loss | -2,998 | -43,417 | -35,867 |
Mineral property interests | 11,984 | 12,707 | 12,750 |
Total assets | 54,131 | 47,359 | 33,899 |
United States | ' | ' | ' |
Operating Segment Reporting | ' | ' | ' |
Exploration costs | 2,952 | 5,060 | 12,825 |
Impairment of mineral property interests and property and equipment | 35,234 | 16,946 | ' |
Loss (gain) on sale of assets | 6,430 | ' | ' |
Operating loss | -47,422 | -25,144 | -15,412 |
Mineral property interests | 172,781 | 215,268 | 232,704 |
Total assets | 177,248 | 220,148 | 238,402 |
Corporate & Other | ' | ' | ' |
Operating Segment Reporting | ' | ' | ' |
Exploration costs | 443 | 1,110 | 998 |
Loss (gain) on sale of assets | -3 | ' | ' |
Operating loss | -10,193 | -14,688 | -8,906 |
Total assets | $17,418 | $58,383 | $38,054 |
FAIR_VALUE_ACCOUNTING_Details
FAIR VALUE ACCOUNTING (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
Item | Item | ||
Liabilities: | ' | ' | ' |
Litigation settlement liabilities | ' | $200 | ' |
Number of shares of common stock required to be issued as a part of settlement | ' | 90,300 | ' |
Number of vendors to which shares of common stock are required to be issued as a part of settlement | 1 | 1 | ' |
Investment in MSC | ' | 212,947 | 273,948 |
Total Loss | ' | 62,963 | 18,468 |
Limo Complex | ' | ' | ' |
Liabilities: | ' | ' | ' |
Total Loss | ' | 19,450 | ' |
Other United States Properties | ' | ' | ' |
Liabilities: | ' | ' | ' |
Total Loss | ' | 9,497 | 2,900 |
MSC | ' | ' | ' |
Liabilities: | ' | ' | ' |
Investment in MSC | ' | 212,947 | 273,948 |
Total Loss | ' | 95,878 | ' |
MSC | Mineral property interests | ' | ' | ' |
Liabilities: | ' | ' | ' |
Total Loss | ' | 152,554 | ' |
Litigation settlement agreement with respect to the Los Azules Copper Project | TNR | ' | ' | ' |
Liabilities: | ' | ' | ' |
Shares of common stock required to be issued as part of settlement | ' | ' | 1,000,000 |
Recurring | Total | ' | ' | ' |
Assets: | ' | ' | ' |
Cash and cash equivalents | ' | 24,321 | 70,921 |
Assets | ' | 24,321 | 70,921 |
Liabilities: | ' | ' | ' |
Accounts payable and accrued liabilities | ' | 177 | ' |
Litigation settlement liabilities | ' | ' | 3,830 |
Liabilities | ' | 177 | 3,830 |
Recurring | Level 1 | ' | ' | ' |
Assets: | ' | ' | ' |
Cash and cash equivalents | ' | 24,321 | 70,921 |
Assets | ' | 24,321 | 70,921 |
Liabilities: | ' | ' | ' |
Accounts payable and accrued liabilities | ' | 177 | ' |
Litigation settlement liabilities | ' | ' | 3,830 |
Liabilities | ' | 177 | 3,830 |
Nonrecurring | Total | ' | ' | ' |
Assets: | ' | ' | ' |
Assets | ' | 262,490 | ' |
Nonrecurring | Total | Telken Tenements | ' | ' | ' |
Assets: | ' | ' | ' |
Assets | ' | 26,442 | ' |
Nonrecurring | Total | Este Tenements | ' | ' | ' |
Assets: | ' | ' | ' |
Assets | ' | 5,337 | ' |
Nonrecurring | Total | Piramides Tenements | ' | ' | ' |
Assets: | ' | ' | ' |
Assets | ' | 9,736 | ' |
Nonrecurring | Total | Tobias Tenements | ' | ' | ' |
Assets: | ' | ' | ' |
Assets | ' | 11,645 | ' |
Nonrecurring | Total | Limo Complex | ' | ' | ' |
Assets: | ' | ' | ' |
Assets | ' | 23,438 | ' |
Nonrecurring | Total | Other United States Properties | ' | ' | ' |
Assets: | ' | ' | ' |
Assets | ' | 9,610 | ' |
Nonrecurring | Total | MSC | ' | ' | ' |
Liabilities: | ' | ' | ' |
Investment in MSC | ' | 176,282 | ' |
Nonrecurring | Level 3 | ' | ' | ' |
Assets: | ' | ' | ' |
Assets | ' | 262,490 | ' |
Nonrecurring | Level 3 | Telken Tenements | ' | ' | ' |
Assets: | ' | ' | ' |
Assets | ' | 26,442 | ' |
Nonrecurring | Level 3 | Este Tenements | ' | ' | ' |
Assets: | ' | ' | ' |
Assets | ' | 5,337 | ' |
Nonrecurring | Level 3 | Piramides Tenements | ' | ' | ' |
Assets: | ' | ' | ' |
Assets | ' | 9,736 | ' |
Nonrecurring | Level 3 | Tobias Tenements | ' | ' | ' |
Assets: | ' | ' | ' |
Assets | ' | 11,645 | ' |
Nonrecurring | Level 3 | Limo Complex | ' | ' | ' |
Assets: | ' | ' | ' |
Assets | ' | 23,438 | ' |
Nonrecurring | Level 3 | Other United States Properties | ' | ' | ' |
Assets: | ' | ' | ' |
Assets | ' | 9,610 | ' |
Nonrecurring | Level 3 | MSC | ' | ' | ' |
Liabilities: | ' | ' | ' |
Investment in MSC | ' | $176,282 | ' |
Nonrecurring | Level 3 | MSC | Discounted cash flow | Weighted Average | ' | ' | ' |
Liabilities: | ' | ' | ' |
Discount Rate (as a percent) | ' | 10.00% | ' |
Long Term Gold Price (in dollars per ounce) | ' | 1,300 | ' |
Long Term Silver Price (in dollars per ounce) | ' | 22.75 | ' |
Nonrecurring | Level 3 | MSC | Discounted cash flow | Weighted Average | Argentina | ' | ' | ' |
Liabilities: | ' | ' | ' |
Inflation index (as a percent) | ' | 10.00% | ' |
Nonrecurring | Level 3 | MSC | Discounted cash flow | Weighted Average | United States | ' | ' | ' |
Liabilities: | ' | ' | ' |
Inflation index (as a percent) | ' | 1.70% | ' |