Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | 2-May-14 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'McEwen Mining Inc. | ' |
Entity Central Index Key | '0000314203 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 265,879,944 |
Exchangeable Common Stock, Shares Outstanding | ' | 31,279,415 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
REVENUE: | ' | ' |
Gold and silver sales | $11,130 | $13,498 |
Total Revenue | 11,130 | 13,498 |
COSTS AND EXPENSES: | ' | ' |
Production costs applicable to sales | 8,527 | 10,593 |
Mine construction costs | 939 | ' |
Mine development costs | 1,568 | 471 |
Exploration costs | 2,680 | 14,600 |
Property holding costs | 1,454 | 1,377 |
General and administrative | 3,227 | 4,192 |
Depreciation | 225 | 282 |
Accretion of asset retirement obligation (note 3) | 101 | 113 |
(Income) loss on investment in Minera Santa Cruz S.A., net of amortization (note 4) | -7,029 | 237 |
Total costs and expenses | 11,692 | 31,865 |
Operating loss | -562 | -18,367 |
OTHER INCOME (EXPENSE): | ' | ' |
Interest income | 75 | 71 |
Gain on litigation settlement | ' | 560 |
Foreign currency (loss) gain | -583 | 291 |
Total other income (expense) | -508 | 922 |
Loss before income taxes | -1,070 | -17,445 |
Recovery of income taxes (note 8) | 18,957 | 6,463 |
Net income (loss) | 17,887 | -10,982 |
OTHER COMPREHENSIVE INCOME (LOSS): | ' | ' |
Unrealized gain on available-for-sale securities, net of taxes | 1 | ' |
Comprehensive income (loss) | $17,888 | ($10,982) |
Net income (loss) per share (note 9): | ' | ' |
Basic (in dollars per share) | $0.06 | ($0.04) |
Diluted (in dollars per share) | $0.06 | ($0.04) |
Weighted average common shares outstanding (thousands) (note 9): | ' | ' |
Basic (in shares) | 297,159 | 296,778 |
Diluted (in shares) | 298,410 | 296,778 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $19,471 | $24,321 |
IVA taxes receivable | 13,081 | 11,591 |
Inventories (note 2) | 9,323 | 8,800 |
Other current assets | 1,817 | 2,059 |
Total current assets | 43,692 | 46,771 |
Mineral property interests | 642,646 | 642,968 |
Restrictive time deposits for reclamation bonding (note 3) | 5,183 | 5,183 |
Investment in Minera Santa Cruz S.A. (note 4) | 216,031 | 212,947 |
Property and equipment, net (note 5) | 16,917 | 15,143 |
Other assets | 142 | 54 |
TOTAL ASSETS | 924,611 | 923,066 |
Current liabilities: | ' | ' |
Accounts payable and accrued liabilities | 11,930 | 9,797 |
Current portion of asset retirement obligation (note 3) | 1,454 | 1,392 |
Total current liabilities | 13,384 | 11,189 |
Asset retirement obligation, less current portion (note 3) | 5,894 | 5,855 |
Deferred income tax liability (note 8) | 139,898 | 158,855 |
Other liabilities | 400 | 400 |
Total liabilities | 159,576 | 176,299 |
Shareholders' equity: | ' | ' |
Common stock, no par value, 500,000 shares authorized; Common: 265,317 as of March 31, 2014 and 264,913 shares as of December 31, 2013 issued and outstanding Exchangeable: 31,842 shares as of March 31, 2014 and 32,246 shares as of December 31, 2013 issued and outstanding | 1,355,076 | 1,354,696 |
Accumulated deficit | -589,747 | -607,634 |
Accumulated other comprehensive loss | -294 | -295 |
Total shareholders' equity | 765,035 | 746,767 |
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY | $924,611 | $923,066 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
CONSOLIDATED BALANCE SHEETS | ' | ' |
Common stock, par value | ' | ' |
Common stock, shares authorized | 500,000 | 500,000 |
Common, shares issued | 265,317 | 264,913 |
Common, shares outstanding | 265,317 | 264,913 |
Exchangeable, shares issued | 31,842 | 32,246 |
Exchangeable, shares outstanding | 31,842 | 32,246 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (USD $) | Total | Common Stock | Accumulated Other Comprehensive (Loss) Income | Accumulated Deficit |
In Thousands, unless otherwise specified | ||||
Balance at Dec. 31, 2012 | $889,591 | $1,349,777 | ($294) | ($459,892) |
Balance (in shares) at Dec. 31, 2012 | ' | 296,025 | ' | ' |
Increase (Decrease) in Shareholders' Equity | ' | ' | ' | ' |
Stock-based compensation | 378 | 378 | ' | ' |
Exercise of stock options | 34 | 34 | ' | ' |
Exercise of stock options (in shares) | ' | 20 | ' | ' |
Shares issued for litigation settlement | 3,270 | 3,270 | ' | ' |
Shares issued for litigation settlement (in shares) | ' | 1,000 | ' | ' |
Shares issued for Mexico mining concessions | 96 | 96 | ' | ' |
Shares issued for Mexico mining concessions (in shares) | ' | 41 | ' | ' |
Net income (loss) | -10,982 | ' | ' | -10,982 |
Balance at Mar. 31, 2013 | 882,387 | 1,353,555 | -294 | -470,874 |
Balance (in shares) at Mar. 31, 2013 | ' | 297,086 | ' | ' |
Balance at Dec. 31, 2013 | 746,767 | 1,354,696 | -295 | -607,634 |
Balance (in shares) at Dec. 31, 2013 | ' | 297,159 | ' | ' |
Increase (Decrease) in Shareholders' Equity | ' | ' | ' | ' |
Stock-based compensation | 380 | 380 | ' | ' |
Unrealized gain on available-for-sale securities, net of taxes | 1 | ' | 1 | ' |
Net income (loss) | 17,887 | ' | ' | 17,887 |
Balance at Mar. 31, 2014 | $765,035 | $1,355,076 | ($294) | ($589,747) |
Balance (in shares) at Mar. 31, 2014 | ' | 297,159 | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash flows from operating activities: | ' | ' |
Cash paid to suppliers and employees | ($19,034) | ($38,193) |
Cash received from gold and silver sales | 11,130 | 13,128 |
Dividends received from Minera Santa Cruz S.A. | 3,945 | ' |
Interest received | 75 | 71 |
Cash used in operating activities | -3,884 | -24,994 |
Cash flows from investing activities: | ' | ' |
Acquisition of mineral property interests | ' | -150 |
Additions to property and equipment | -371 | -175 |
Cash used in investing activities | -371 | -325 |
Cash flows from financing activities: | ' | ' |
Exercise of stock options | ' | 34 |
Cash provided by financing activities | ' | 34 |
Effect of exchange rate change on cash and cash equivalents | -595 | -514 |
Decrease in cash and cash equivalents | -4,850 | -25,799 |
Cash and cash equivalents, beginning of period | 24,321 | 70,921 |
Cash and cash equivalents, end of period | 19,471 | 45,122 |
Reconciliation of net loss to cash used in operating activities: | ' | ' |
Net income (loss) | 17,887 | -10,982 |
Adjustments to reconcile net income (loss) from operating activities: | ' | ' |
(Income) loss on investment in Minera Santa Cruz S.A., net of amortization | 7,029 | -237 |
Recovery of income taxes | -18,957 | -6,463 |
Gain on litigation settlement | ' | -560 |
Stock-based compensation | 380 | 378 |
Depreciation | 225 | 282 |
Accretion of asset retirement obligation | 101 | 113 |
Amortization of mineral property interests and asset retirement obligations | 322 | 669 |
Foreign exchange loss | 595 | 514 |
Change in non-cash working capital items: | ' | ' |
Increase in other assets related to operations | -1,857 | -561 |
Increase (decrease) in liabilities related to operations | 504 | -8,621 |
Dividend receivable from Minera Santa Cruz S.A | 3,945 | ' |
Cash used in operating activities | ($3,884) | ($24,994) |
NATURE_OF_OPERATIONS_AND_SUMMA
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2014 | |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
NOTE 1 NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Nature of Operations and Basis of Presentation | |
McEwen Mining Inc. (the “Company” or “McEwen Mining”) 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. (“Minera Andes”) 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. (“MSC”), owner and operator of the producing San José mine in Santa Cruz, Argentina, which is controlled by the majority owner of the joint venture, Hochschild Mining plc (‘‘Hochschild’’). It also owns the El Gallo 1 mine in Sinaloa, Mexico, where production resumed in September 2012. In addition to its operating properties, the Company also holds interests in numerous exploration stage properties and projects in Argentina, Mexico and the United States. | |
The interim consolidated financial statements included herein have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) has been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures included are adequate to make the information presented not misleading. | |
In management’s opinion, the unaudited Consolidated Statements of Operations and Comprehensive Income (Loss) for the three months ended March 31, 2014 and 2013, the Consolidated Balance Sheets as at March 31, 2014 (unaudited) and December 31, 2013, the unaudited Consolidated Statement of Changes in Shareholders’ Equity for the three months ended March 31, 2014 and 2013, and the unaudited Consolidated Statements of Cash Flows for the three months ended March 31, 2014 and 2013, contained herein, reflect all adjustments, consisting solely of normal recurring items, which are necessary for the fair presentation of the Company’s financial position, results of operations and cash flows on a basis consistent with that of the Company’s prior audited consolidated financial statements. However, the results of operations for the interim periods may not be indicative of results to be expected for the full fiscal year. Therefore these financial statements should be read in conjunction with the audited financial statements and notes thereto and summary of significant accounting policies included in the Company’s Form 10-K for the year ended December 31, 2013. Except as noted below, there have been no material changes in the footnotes from those accompanying the audited consolidated financial statements contained in the Company’s Form 10-K for the year ended December 31, 2013. | |
The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All inter-company accounts and transactions have been eliminated. | |
Recently Adopted 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 the same jurisdiction’s net operating loss carryforward, a similar tax loss, or tax credit carryforwards. 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 new guidance affects disclosures only and the adoption had no impact on the Company’s 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 updated guidance had no impact on the Company’s consolidated financial position, results of operations or cash flows. | |
Recently Issued Accounting Pronouncements | |
Presentation of Financial Statements (ASC 205) and Property, Plant and Equipment (ASC 360) — Reporting Discontinued Operations and Disclosures of Components of an Entity: In April 2014, ASC guidance was amended to change the requirements for reporting discontinued operations in ASC 205-20. A disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations only if the disposal represents a strategic shift that has, or will have, a major effect on an entity’s operations and financial results when any of the following occurs: (1) the component of an entity or group of components of an entity meets the criteria in ASC 205-20-45-1E to be classified as held for sale; (2) the component of an entity or group of components of an entity is disposed of by sale; (3) the component of an entity or group of components of an entity is disposed of other than by sale. The update is effective prospectively for the Company’s fiscal year beginning January 1, 2015. The new guidance is not expected to have an impact on the Company’s consolidated financial position, results of operations or cash flows. |
INVENTORIES
INVENTORIES | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
INVENTORIES | ' | |||||||
INVENTORIES | ' | |||||||
NOTE 2 INVENTORIES | ||||||||
Inventories at March 31, 2014 and December 31, 2013 consist of the following: | ||||||||
March 31, 2014 | December 31, 2013 | |||||||
(in thousands) | ||||||||
Ore on leach pads | $ | 2,451 | $ | 2,749 | ||||
In-process inventory | 3,203 | 2,681 | ||||||
Stockpiles | 255 | 778 | ||||||
Precious metals | 2,015 | 1,300 | ||||||
Materials and supplies | 1,399 | 1,292 | ||||||
Inventories | $ | 9,323 | $ | 8,800 |
ASSET_RETIREMENT_OBLIGATIONS
ASSET RETIREMENT OBLIGATIONS | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
ASSET RETIREMENT OBLIGATIONS | ' | |||||||
ASSET RETIREMENT OBLIGATIONS | ' | |||||||
NOTE 3 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”) was $2.8 million as of March 31, 2014. 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. As at March 31, 2014, 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 March 31, 2014, had cash bonding in place of $5.2 million (December 31, 2013 - $5.2 million). | ||||||||
The current undiscounted estimate of the reclamation costs for existing disturbances at the El Gallo 1 mine was $4.6 million as of March 31, 2014. Expenses are expected to be incurred between the years 2014 and 2018. Under Mexican regulations, surety bonding of projected reclamation costs is not required. | ||||||||
A reconciliation of the Company’s asset retirement obligations for the three months ended March 31, 2014 and for the year ended December 31, 2013 are as follows: | ||||||||
Three Months Ended | Year Ended | |||||||
March 31, 2014 | December 31, 2013 | |||||||
(in thousands) | ||||||||
Asset retirement obligation liability, beginning balance | $ | 7,247 | $ | 6,359 | ||||
Settlements | — | (60 | ) | |||||
Accretion of liability | 101 | 461 | ||||||
Adjustment reflecting updated estimates | — | 487 | ||||||
Asset retirement obligation liability, ending balance | $ | 7,348 | $ | 7,247 | ||||
As at March 31, 2014, the current portion of the asset retirement obligation was $1.5 million (December 31, 2013 - $1.4 million). | ||||||||
The definition of proven and probable reserves is set forth in the SEC Industry Guide 7. If proven and probable reserves exist at the Company’s properties, the relevant capitalized mineral property interests and asset retirement costs are to be charged to expense based on the units of production method and upon commencement of production. Since the Company has not completed feasibility or other studies sufficient to characterize the mineralized material at El Gallo 1 as proven or probable reserves, the amortization of the capitalized mineral property interests and asset retirement costs are charged to expense based on the straight-line method over the estimated useful life of the mine. For the three months ended March 31, 2014, the Company recorded $0.3 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 three months ended March 31, 2014, of which $0.1 million related to the amortization of capitalized asset retirement costs. |
INVESTMENT_IN_MINERA_SANTA_CRU
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE | ' | |||||||
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE | ' | |||||||
NOTE 4 INVESTMENT IN MINERA SANTA CRUZ S.A. (“MSC”) — SAN JOSÉ MINE | ||||||||
The Company’s share of earnings from its investment in MSC is included in the Consolidated Statement of Operations and Comprehensive Income (Loss), and amounted to $3.0 million for the three months ended March 31, 2014, or 49% of MSC’s reported net income of $6.2 million. The amortization of the fair value increments arising from the purchase price allocation of $1.8 million, net of a recovery of income taxes of $5.8 million due to the impact of the devaluation of the Argentine peso relative to the U.S. dollar on the deferred tax liability associated with MSC as part of the Minera Andes acquisition, increased the Company’s share of the reported net income from MSC by $4.0 million, resulting in net income of $7.0 million. This compares to $1.2 million for the three months ended March 31, 2013, or 49% of MSC’s reported net income of $2.4 million, which was reduced by the amortization of the fair value increments of $1.4 million, net of tax, for a net loss of $0.2 million. | ||||||||
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 the error was not material to previously-reported consolidated financial statements, the correction was recorded in the quarter ended March 31, 2013. As a result, the income from the Company’s equity investment of 49% in MSC for the three months ended March 31, 2013 was understated by $1.9 million. | ||||||||
Changes in the Company’s investment in MSC for the three months ended March 31, 2014 and year ended December 31, 2013 are as follows: | ||||||||
Three months ended | Year ended | |||||||
March 31, 2014 | December 31, 2013 | |||||||
(in thousands) | ||||||||
Investment in MSC, beginning balance | $ | 212,947 | $ | 273,948 | ||||
Income from equity investment | 3,029 | 2,126 | ||||||
Amortization of fair value increments, net of tax | 4,000 | (1,280 | ) | |||||
Dividend distribution | (3,945 | ) | (1,826 | ) | ||||
Impairment of investment in MSC | — | (95,878 | ) | |||||
Contribution of Santa Cruz exploration properties, net of tax | — | 35,857 | ||||||
Investment in MSC, ending balance | $ | 216,031 | $ | 212,947 | ||||
A summary of the operating results from MSC for the three months ended March 31, 2014 and 2013 is as follows: | ||||||||
Three months ended March 31, | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Minera Santa Cruz S.A. (100%) | ||||||||
Net sales | $ | 56,889 | $ | 43,813 | ||||
Production costs applicable to sales | (39,637 | ) | (36,803 | ) | ||||
Income from operations before extraordinary items | 6,182 | 2,440 | ||||||
Net income | 6,182 | 2,440 | ||||||
Portion attributable to McEwen Mining Inc. (49%) | ||||||||
Net income on investment in MSC | $ | 3,029 | $ | 1,196 | ||||
Amortization of fair value increments, net of tax | 4,000 | (1,433 | ) | |||||
Income (loss) on investment in MSC, net of amortization | $ | 7,029 | $ | (237 | ) | |||
As at March 31, 2014, MSC had current assets of $106.2 million, total assets of $544.4 million, current liabilities of $42.6 million and total liabilities of $138.7 million on an unaudited basis. These balances include the increase in fair value and amortization of the fair value increments arising from the purchase price allocation and are net of the impairment charge of $95.9 million recorded in the second quarter of 2013. | ||||||||
During the the three months ended March 31, 2014, the Company received $3.9 million in dividends from MSC, compared to $nil during the same period in 2013. |
PROPERTY_AND_EQUIPMENT
PROPERTY AND EQUIPMENT | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
PROPERTY AND EQUIPMENT | ' | |||||||
PROPERTY AND EQUIPMENT | ' | |||||||
NOTE 5 PROPERTY AND EQUIPMENT | ||||||||
As at March 31, 2014 and December 31, 2013, property and equipment consisted of the following: | ||||||||
March 31, 2014 | December 31, 2013 | |||||||
(in thousands) | ||||||||
Trucks and trailers | $ | 1,041 | $ | 1,041 | ||||
Office furniture and equipment | 1,163 | 1,163 | ||||||
Drill rigs | 998 | 998 | ||||||
Building | 1,469 | 1,469 | ||||||
Land | 8,699 | 8,672 | ||||||
Mining equipment | 1,363 | 1,206 | ||||||
Construction-in-progress | 5,709 | 3,894 | ||||||
Subtotal | $ | 20,442 | $ | 18,443 | ||||
Less: accumulated depreciation | (3,525 | ) | (3,300 | ) | ||||
Total | $ | 16,917 | $ | 15,143 | ||||
The increase in property and equipment from December 31, 2013 to March 31, 2014 was mainly in relation to construction-in-progress assets, which include advances the Company made to a supplier for long-lead items for its El Gallo 2 project. | ||||||||
Depreciation expense for the three months ended March 31, 2014 and 2013 was $0.2 million and $0.3 million, respectively. |
SHAREHOLDERS_EQUITY
SHAREHOLDERS' EQUITY | 3 Months Ended |
Mar. 31, 2014 | |
SHAREHOLDERS' EQUITY | ' |
SHAREHOLDERS' EQUITY | ' |
NOTE 6 SHAREHOLDERS’ EQUITY | |
During the three months ended March 31, 2014, 0.4 million exchangeable shares were converted into common stock. At March 31, 2014, total outstanding exchangeable shares not exchanged and not owned by the Company or its subsidiaries totaled 31.8 million. | |
In 2013, the Company entered into an agreement with one of its mining contractors to settle parts of its 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 is determined monthly, based on the amount payable by the Company for services rendered above a defined tonnage threshold, using the closing price of the common stock quoted on active markets at the end of every month. As at March 31, 2014, the Company was required to issue a cumulative total of approximately 156,500 common shares under this agreement. The fair value of this liability of $0.4 million is included in accounts payable and accrued liabilities on the Consolidated Balance Sheet as at March 31, 2014. |
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2014 | |
STOCK-BASED COMPENSATION | ' |
STOCK-BASED COMPENSATION | ' |
NOTE 7 STOCK-BASED COMPENSATION | |
During the three months ended March 31, 2014 and 2013, the Company recorded stock option expense of $0.4 million. During those periods, no stock options were granted to employees or directors. |
INCOME_TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2014 | |
INCOME TAXES | ' |
INCOME TAXES | ' |
NOTE 8 INCOME TAXES | |
The Company’s income tax expense differs from the amount computed by applying the U.S. federal and state statutory corporate income tax rate of 35% primarily due to changes in the deferred tax liability associated with mineral property interests acquired with the Minera Andes acquisition. This deferred tax liability, which is denominated in Argentine peso, is impacted by fluctuations in the foreign exchange rate between the Argentine peso and U.S. dollar. For the three months ended March 31, 2014, the Company recorded an income tax recovery of $18.9 million as a result of the Argentine peso devaluation, compared to $6.2 million for the three months ended March 31, 2013. |
INCOME_LOSS_PER_SHARE
INCOME (LOSS) PER SHARE | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
INCOME (LOSS) PER SHARE | ' | |||||||
INCOME (LOSS) PER SHARE | ' | |||||||
NOTE 9 INCOME (LOSS) PER SHARE | ||||||||
Basic net income (loss) per share is computed by dividing the net income (loss) available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is computed similarly except that the weighted average number of common shares is increased to reflect all dilutive instruments. Below is a reconciliation of the basic and diluted weighted average number of common shares and the computations for basic income (loss) per share for the three months ended March 31, 2014 and 2013: | ||||||||
Three months ended March 31, | ||||||||
2014 | 2013 | |||||||
(in thousands, except per share) | ||||||||
Net income (loss) | $ | 17,887 | $ | (10,982 | ) | |||
Weighted average common shares (thousands): | ||||||||
Basic | 297,159 | 296,778 | ||||||
Effect of employee stock-based awards | 1,251 | — | ||||||
Diluted | 298,410 | 296,778 | ||||||
Net income (loss) per share: | ||||||||
Basic | $ | 0.06 | $ | (0.04 | ) | |||
Diluted | $ | 0.06 | $ | (0.04 | ) | |||
Options to purchase 1.5 million shares of common stock (March 31, 2013 — 1.8 million) at March 31, 2014 at an average exercise price of $5.95 per share (March 31, 2013 — $5.98) 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 three months ended March 31, 2014 and 2013, respectively. Other outstanding options to purchase 1.2 million shares of common stock were not included in the computation of diluted weighted average shares in the three months ended March 31, 2013 because their effect would have been anti-dilutive. |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2014 | |
RELATED PARTY TRANSACTIONS | ' |
RELATED PARTY TRANSACTIONS | ' |
NOTE 10 RELATED PARTY TRANSACTIONS | |
For the three months ended March 31, 2014, the Company incurred and paid $20,480 to an entity affiliated with the Company’s Chairman and Chief Executive Officer for the use of an aircraft, compared to $70,525 for the three months ended March 31, 2013. |
SEGMENTED_INFORMATION
SEGMENTED INFORMATION | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
SEGMENTED INFORMATION | ' | ||||||||||||||||
SEGMENTED INFORMATION | ' | ||||||||||||||||
NOTE 11 SEGMENTED INFORMATION | |||||||||||||||||
McEwen Mining is a mining and minerals exploration, development and production 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. | |||||||||||||||||
The financial information relating to the Company’s segments as of, and for the three months ended, March 31, 2014 and 2013 is as follows: | |||||||||||||||||
For the three months ended March 31, 2014 | |||||||||||||||||
Corporate | |||||||||||||||||
Argentina | Mexico | U.S. | & Other | Total | |||||||||||||
(in thousands) | |||||||||||||||||
For the three months ended March 31, 2014 | |||||||||||||||||
Gold and silver sales | $ | — | $ | 11,130 | $ | — | $ | — | $ | 11,130 | |||||||
Production costs applicable to sales | — | (8,527 | ) | — | — | (8,527 | ) | ||||||||||
Mine construction costs | — | (939 | ) | — | — | (939 | ) | ||||||||||
Mine development costs | — | (1,568 | ) | — | — | (1,568 | ) | ||||||||||
Exploration costs | (501 | ) | (1,388 | ) | (686 | ) | (105 | ) | (2,680 | ) | |||||||
Income on investment in Minera Santa Cruz S.A. (net of amortization) | 7,029 | — | — | — | 7,029 | ||||||||||||
Operating income (loss) | 6,258 | (3,048 | ) | (1,429 | ) | (2,343 | ) | (562 | ) | ||||||||
As at March 31, 2014 | |||||||||||||||||
Investment in Minera Santa Cruz S.A. | 216,031 | — | — | — | 216,031 | ||||||||||||
Mineral property interests | 458,203 | 11,662 | 172,781 | — | 642,646 | ||||||||||||
Total assets | 677,246 | 57,433 | 176,862 | 13,070 | 924,611 | ||||||||||||
For the three months ended March 31, 2013 | |||||||||||||||||
Corporate | |||||||||||||||||
Argentina | Mexico | U.S. | & Other | Total | |||||||||||||
(in thousands) | |||||||||||||||||
For the three months ended March 31, 2013 | |||||||||||||||||
Gold and silver sales | $ | — | $ | 13,498 | $ | — | $ | — | $ | 13,498 | |||||||
Production costs applicable to sales | — | (10,593 | ) | — | — | (10,593 | ) | ||||||||||
Mine development costs | — | (471 | ) | — | — | (471 | ) | ||||||||||
Exploration costs | (11,462 | ) | (2,485 | ) | (580 | ) | (73 | ) | (14,600 | ) | |||||||
Loss on investment in Minera Santa Cruz S.A. (net of amortization) | (237 | ) | — | — | — | (237 | ) | ||||||||||
Operating loss | (11,912 | ) | (2,050 | ) | (945 | ) | (3,460 | ) | (18,367 | ) | |||||||
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 | ||||||||||||
FAIR_VALUE_ACCOUNTING
FAIR VALUE ACCOUNTING | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
FAIR VALUE ACCOUNTING | ' | |||||||||||||
FAIR VALUE ACCOUNTING | ' | |||||||||||||
NOTE 12 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). | ||||||||||||||
The following table identifies the fair value of the Company’s financial assets and liabilities as reported in the Consolidated Balance Sheets at March 31, 2014 and December 31, 2013 by level within the fair value hierarchy. 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 at March 31, 2014 | ||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||
(in thousands) | ||||||||||||||
Assets: | ||||||||||||||
Cash and cash equivalents | $ | 19,471 | $ | 19,471 | $ | — | $ | — | ||||||
$ | 19,471 | $ | 19,471 | $ | — | $ | — | |||||||
Liabilities: | ||||||||||||||
Accounts payable and accrued liabilities | $ | 371 | $ | 371 | $ | — | $ | — | ||||||
$ | 371 | $ | 371 | $ | — | $ | — | |||||||
Fair Value as at 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 | $ | — | $ | — | |||||||
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 cash equivalent instruments that are valued based on quoted market prices in active markets are primarily money market securities. | ||||||||||||||
As at March 31, 2014, accounts payable included an accrual of $0.4 million for the fair value of approximately 156,500 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 6, 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 fair value of other financial assets and liabilities approximate their carrying values due to their short-term nature and historically negligible credit losses. |
INVENTORIES_Tables
INVENTORIES (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
INVENTORIES | ' | |||||||
Schedule of inventories | ' | |||||||
March 31, 2014 | December 31, 2013 | |||||||
(in thousands) | ||||||||
Ore on leach pads | $ | 2,451 | $ | 2,749 | ||||
In-process inventory | 3,203 | 2,681 | ||||||
Stockpiles | 255 | 778 | ||||||
Precious metals | 2,015 | 1,300 | ||||||
Materials and supplies | 1,399 | 1,292 | ||||||
Inventories | $ | 9,323 | $ | 8,800 |
ASSET_RETIREMENT_OBLIGATIONS_T
ASSET RETIREMENT OBLIGATIONS (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
ASSET RETIREMENT OBLIGATIONS | ' | |||||||
Schedule of reconciliation of asset retirement obligations | ' | |||||||
Three Months Ended | Year Ended | |||||||
March 31, 2014 | December 31, 2013 | |||||||
(in thousands) | ||||||||
Asset retirement obligation liability, beginning balance | $ | 7,247 | $ | 6,359 | ||||
Settlements | — | (60 | ) | |||||
Accretion of liability | 101 | 461 | ||||||
Adjustment reflecting updated estimates | — | 487 | ||||||
Asset retirement obligation liability, ending balance | $ | 7,348 | $ | 7,247 |
INVESTMENT_IN_MINERA_SANTA_CRU1
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE | ' | |||||||
Schedule of change in the entity's investment in MSC | ' | |||||||
Three months ended | Year ended | |||||||
March 31, 2014 | December 31, 2013 | |||||||
(in thousands) | ||||||||
Investment in MSC, beginning balance | $ | 212,947 | $ | 273,948 | ||||
Income from equity investment | 3,029 | 2,126 | ||||||
Amortization of fair value increments, net of tax | 4,000 | (1,280 | ) | |||||
Dividend distribution | (3,945 | ) | (1,826 | ) | ||||
Impairment of investment in MSC | — | (95,878 | ) | |||||
Contribution of Santa Cruz exploration properties, net of tax | — | 35,857 | ||||||
Investment in MSC, ending balance | $ | 216,031 | $ | 212,947 | ||||
Summary of MSC's financial information from operations | ' | |||||||
Three months ended March 31, | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Minera Santa Cruz S.A. (100%) | ||||||||
Net sales | $ | 56,889 | $ | 43,813 | ||||
Production costs applicable to sales | (39,637 | ) | (36,803 | ) | ||||
Income from operations before extraordinary items | 6,182 | 2,440 | ||||||
Net income | 6,182 | 2,440 | ||||||
Portion attributable to McEwen Mining Inc. (49%) | ||||||||
Net income on investment in MSC | $ | 3,029 | $ | 1,196 | ||||
Amortization of fair value increments, net of tax | 4,000 | (1,433 | ) | |||||
Income (loss) on investment in MSC, net of amortization | $ | 7,029 | $ | (237 | ) |
PROPERTY_AND_EQUIPMENT_Tables
PROPERTY AND EQUIPMENT (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
PROPERTY AND EQUIPMENT | ' | |||||||
Schedule of property and equipment | ' | |||||||
March 31, 2014 | December 31, 2013 | |||||||
(in thousands) | ||||||||
Trucks and trailers | $ | 1,041 | $ | 1,041 | ||||
Office furniture and equipment | 1,163 | 1,163 | ||||||
Drill rigs | 998 | 998 | ||||||
Building | 1,469 | 1,469 | ||||||
Land | 8,699 | 8,672 | ||||||
Mining equipment | 1,363 | 1,206 | ||||||
Construction-in-progress | 5,709 | 3,894 | ||||||
Subtotal | $ | 20,442 | $ | 18,443 | ||||
Less: accumulated depreciation | (3,525 | ) | (3,300 | ) | ||||
Total | $ | 16,917 | $ | 15,143 |
INCOME_LOSS_PER_SHARE_Tables
INCOME (LOSS) PER SHARE (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
INCOME (LOSS) PER SHARE | ' | |||||||
Schedule of reconciliation of the basic and diluted weighted average number of common shares and the computations for basic income (loss) per share | ' | |||||||
Three months ended March 31, | ||||||||
2014 | 2013 | |||||||
(in thousands, except per share) | ||||||||
Net income (loss) | $ | 17,887 | $ | (10,982 | ) | |||
Weighted average common shares (thousands): | ||||||||
Basic | 297,159 | 296,778 | ||||||
Effect of employee stock-based awards | 1,251 | — | ||||||
Diluted | 298,410 | 296,778 | ||||||
Net income (loss) per share: | ||||||||
Basic | $ | 0.06 | $ | (0.04 | ) | |||
Diluted | $ | 0.06 | $ | (0.04 | ) |
SEGMENTED_INFORMATION_Tables
SEGMENTED INFORMATION (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
SEGMENTED INFORMATION | ' | ||||||||||||||||
Schedule of the financial information relating to the Company's segments | ' | ||||||||||||||||
For the three months ended March 31, 2014 | |||||||||||||||||
Corporate | |||||||||||||||||
Argentina | Mexico | U.S. | & Other | Total | |||||||||||||
(in thousands) | |||||||||||||||||
For the three months ended March 31, 2014 | |||||||||||||||||
Gold and silver sales | $ | — | $ | 11,130 | $ | — | $ | — | $ | 11,130 | |||||||
Production costs applicable to sales | — | (8,527 | ) | — | — | (8,527 | ) | ||||||||||
Mine construction costs | — | (939 | ) | — | — | (939 | ) | ||||||||||
Mine development costs | — | (1,568 | ) | — | — | (1,568 | ) | ||||||||||
Exploration costs | (501 | ) | (1,388 | ) | (686 | ) | (105 | ) | (2,680 | ) | |||||||
Income on investment in Minera Santa Cruz S.A. (net of amortization) | 7,029 | — | — | — | 7,029 | ||||||||||||
Operating income (loss) | 6,258 | (3,048 | ) | (1,429 | ) | (2,343 | ) | (562 | ) | ||||||||
As at March 31, 2014 | |||||||||||||||||
Investment in Minera Santa Cruz S.A. | 216,031 | — | — | — | 216,031 | ||||||||||||
Mineral property interests | 458,203 | 11,662 | 172,781 | — | 642,646 | ||||||||||||
Total assets | 677,246 | 57,433 | 176,862 | 13,070 | 924,611 | ||||||||||||
For the three months ended March 31, 2013 | |||||||||||||||||
Corporate | |||||||||||||||||
Argentina | Mexico | U.S. | & Other | Total | |||||||||||||
(in thousands) | |||||||||||||||||
For the three months ended March 31, 2013 | |||||||||||||||||
Gold and silver sales | $ | — | $ | 13,498 | $ | — | $ | — | $ | 13,498 | |||||||
Production costs applicable to sales | — | (10,593 | ) | — | — | (10,593 | ) | ||||||||||
Mine development costs | — | (471 | ) | — | — | (471 | ) | ||||||||||
Exploration costs | (11,462 | ) | (2,485 | ) | (580 | ) | (73 | ) | (14,600 | ) | |||||||
Loss on investment in Minera Santa Cruz S.A. (net of amortization) | (237 | ) | — | — | — | (237 | ) | ||||||||||
Operating loss | (11,912 | ) | (2,050 | ) | (945 | ) | (3,460 | ) | (18,367 | ) | |||||||
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 | ||||||||||||
FAIR_VALUE_ACCOUNTING_Tables
FAIR VALUE ACCOUNTING (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
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 at March 31, 2014 | ||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||
(in thousands) | ||||||||||||||
Assets: | ||||||||||||||
Cash and cash equivalents | $ | 19,471 | $ | 19,471 | $ | — | $ | — | ||||||
$ | 19,471 | $ | 19,471 | $ | — | $ | — | |||||||
Liabilities: | ||||||||||||||
Accounts payable and accrued liabilities | $ | 371 | $ | 371 | $ | — | $ | — | ||||||
$ | 371 | $ | 371 | $ | — | $ | — | |||||||
Fair Value as at 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 | $ | — | $ | — |
NATURE_OF_OPERATIONS_AND_SUMMA1
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (MSC) | Mar. 31, 2014 | Mar. 31, 2013 |
MSC | ' | ' |
THE COMPANY | ' | ' |
Ownership interest (as a percent) | 49.00% | 49.00% |
INVENTORIES_Details
INVENTORIES (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
INVENTORIES | ' | ' |
Ore on leach pads | $2,451 | $2,749 |
In-process inventory | 3,203 | 2,681 |
Stockpiles | 255 | 778 |
Precious metals | 2,015 | 1,300 |
Materials and supplies | 1,399 | 1,292 |
Inventories | $9,323 | $8,800 |
ASSET_RETIREMENT_OBLIGATIONS_D
ASSET RETIREMENT OBLIGATIONS (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Asset retirement obligations | ' | ' | ' |
Cash bonding for mineral properties in the United States | $5,183,000 | ' | $5,183,000 |
Amortization of mineral property interests and asset retirement obligations | 322,000 | 669,000 | ' |
Changes in the asset retirement obligations | ' | ' | ' |
Asset retirement obligation liability, beginning balance | 7,247,000 | 6,359,000 | 6,359,000 |
Settlements | ' | ' | -60,000 |
Accretion of liability | 101,000 | 113,000 | 461,000 |
Adjustment reflecting updated estimates | ' | ' | 487,000 |
Asset retirement obligation liability, ending balance | 7,348,000 | ' | 7,247,000 |
Current portion of the asset retirement obligation | 1,454,000 | ' | 1,392,000 |
Tonkin property and El Gallo 1 mine portion of the El Gallo Complex | ' | ' | ' |
Asset retirement obligations | ' | ' | ' |
Number of most significant properties subject to reclamation obligations | 2 | ' | ' |
Tonkin Complex | ' | ' | ' |
Asset retirement obligations | ' | ' | ' |
Undiscounted estimated reclamation costs | 2,800,000 | ' | ' |
El Gallo 1 mine | ' | ' | ' |
Asset retirement obligations | ' | ' | ' |
Undiscounted estimated reclamation costs | 4,600,000 | ' | ' |
Amortization of mineral property interests and asset retirement obligations | 300,000 | 1,200,000 | ' |
Amortization of capitalized asset retirement costs | $100,000 | ' | ' |
INVESTMENT_IN_MINERA_SANTA_CRU2
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE | ' | ' | ' |
Recovery of income taxes | $18,957,000 | $6,463,000 | ' |
Income on investment in MSC, net of amortization | 7,029,000 | -237,000 | ' |
MSC | ' | ' | ' |
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE | ' | ' | ' |
Net income on investment in MSC | 3,029,000 | 1,196,000 | 2,126,000 |
Ownership interest (as a percent) | 49.00% | 49.00% | ' |
Net income | 6,182,000 | 2,440,000 | ' |
Amortization of fair value increments, before tax | 1,800,000 | ' | ' |
Recovery of income taxes | 5,800,000 | ' | ' |
Amortization of fair value increments, net of tax | 4,000,000 | -1,433,000 | -1,280,000 |
Income on investment in MSC, net of amortization | 7,029,000 | -237,000 | ' |
Equity method investment, overstatement of income from prior year recorded in current period | ' | 3,900,000 | ' |
Entity's share of income in investee, understatement of income from prior year recorded in current period | ' | $1,900,000 | ' |
INVESTMENT_IN_MINERA_SANTA_CRU3
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2013 |
Change in the investment in MSC | ' | ' | ' | ' |
Investment in MSC, ending balance | $216,031 | ' | $212,947 | $212,947 |
MSC | ' | ' | ' | ' |
Change in the investment in MSC | ' | ' | ' | ' |
Investment in MSC, beginning balance | 212,947 | ' | 273,948 | 273,948 |
Income from equity investment | 3,029 | ' | 1,196 | 2,126 |
Amortization of fair value increments, net of tax | 4,000 | ' | -1,433 | -1,280 |
Dividend distribution | -3,945 | ' | ' | -1,826 |
Impairment of investment in MSC | ' | -95,900 | ' | -95,878 |
Contribution of Santa Cruz exploration properties, net of tax | ' | ' | ' | 35,857 |
Investment in MSC, ending balance | $216,031 | ' | ' | $212,947 |
INVESTMENT_IN_MINERA_SANTA_CRU4
INVESTMENT IN MINERA SANTA CRUZ S.A. (''MSC'') - SAN JOSE MINE (Details 3) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE | ' | ' | ' |
Income on investment in MSC, net of amortization | $7,029 | ($237) | ' |
MSC | ' | ' | ' |
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE | ' | ' | ' |
Net sales percentage | 100.00% | 100.00% | ' |
Net sales | 56,889 | 43,813 | ' |
Production costs applicable to sales | -39,637 | -36,803 | ' |
Income from operations before extraordinary items | 6,182 | 2,440 | ' |
Net income | 6,182 | 2,440 | ' |
Ownership interest (as a percent) | 49.00% | 49.00% | ' |
Net income on investment in MSC | 3,029 | 1,196 | 2,126 |
Amortization of fair value increments, net of tax | 4,000 | -1,433 | -1,280 |
Income on investment in MSC, net of amortization | $7,029 | ($237) | ' |
INVESTMENT_IN_MINERA_SANTA_CRU5
INVESTMENT IN MINERA SANTA CRUZ S.A. (''MSC'') - SAN JOSE MINE (Details 4) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2013 |
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE | ' | ' | ' | ' |
Current assets | $43,692 | ' | ' | $46,771 |
Total assets | 924,611 | ' | 923,066 | 923,066 |
Current liabilities | 13,384 | ' | ' | 11,189 |
Total liabilities | 159,576 | ' | ' | 176,299 |
Dividends received | 3,945 | ' | ' | ' |
MSC | ' | ' | ' | ' |
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE | ' | ' | ' | ' |
Current assets | 106,200 | ' | ' | ' |
Total assets | 544,400 | ' | ' | ' |
Current liabilities | 42,600 | ' | ' | ' |
Total liabilities | 138,700 | ' | ' | ' |
Impairment of investment in Minera Santa Cruz S.A. | ' | 95,900 | ' | 95,878 |
Dividends received | $3,900 | ' | ' | ' |
PROPERTY_AND_EQUIPMENT_Details
PROPERTY AND EQUIPMENT (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
PROPERTY AND EQUIPMENT | ' | ' | ' |
Subtotal | $20,442 | ' | $18,443 |
Less: accumulated depreciation | -3,525 | ' | -3,300 |
Total | 16,917 | ' | 15,143 |
Depreciation expense | 225 | 282 | ' |
Trucks and trailers | ' | ' | ' |
PROPERTY AND EQUIPMENT | ' | ' | ' |
Subtotal | 1,041 | ' | 1,041 |
Office furniture and equipment | ' | ' | ' |
PROPERTY AND EQUIPMENT | ' | ' | ' |
Subtotal | 1,163 | ' | 1,163 |
Drill rigs | ' | ' | ' |
PROPERTY AND EQUIPMENT | ' | ' | ' |
Subtotal | 998 | ' | 998 |
Building | ' | ' | ' |
PROPERTY AND EQUIPMENT | ' | ' | ' |
Subtotal | 1,469 | ' | 1,469 |
Land | ' | ' | ' |
PROPERTY AND EQUIPMENT | ' | ' | ' |
Subtotal | 8,699 | ' | 8,672 |
Mining equipment | ' | ' | ' |
PROPERTY AND EQUIPMENT | ' | ' | ' |
Subtotal | 1,363 | ' | 1,206 |
Construction-in-progress | ' | ' | ' |
PROPERTY AND EQUIPMENT | ' | ' | ' |
Subtotal | $5,709 | ' | $3,894 |
SHAREHOLDERS_EQUITY_Details
SHAREHOLDERS' EQUITY (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
item | item | |
Exchangeable shares converted into common stock | 400,000 | ' |
Outstanding Exchangeable Shares not exchanged | 31,800,000 | ' |
Number of mining contractors with which the entity has entered into an agreement | 1 | 1 |
Number of shares required to be issued under the agreement | 156,500 | ' |
Litigation settlement liabilities | $0.40 | ' |
Maximum | ' | ' |
Number of shares to be issued to settle parts of expected future account payables | ' | 2,500,000 |
STOCKBASED_COMPENSATION_Detail
STOCK-BASED COMPENSATION (Details) (USD $) | 3 Months Ended | |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
STOCK BASED COMPENSATION | ' | ' |
Stock option expense | $0.40 | $0.40 |
Employees and directors | ' | ' |
STOCK BASED COMPENSATION | ' | ' |
Stock options granted (in shares) | 0 | 0 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
INCOME TAXES | ' | ' |
U.S. federal and state statutory corporate income tax rate (as a percent) | 35.00% | ' |
Recovery of income taxes related to Argentine peso devaluation | $18.90 | $6.20 |
INCOME_LOSS_PER_SHARE_Details
INCOME (LOSS) PER SHARE (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
INCOME (LOSS) PER SHARE | ' | ' |
Net income (loss) | $17,887 | ($10,982) |
Weighted average common shares: | ' | ' |
Basic (in shares) | 297,159,000 | 296,778,000 |
Effect of employee stock-based awards (in shares) | 1,251,000 | ' |
Diluted (in shares) | 298,410,000 | 296,778,000 |
Net income (loss) per share: | ' | ' |
Basic (in dollars per share) | $0.06 | ($0.04) |
Diluted (in dollars per share) | $0.06 | ($0.04) |
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) | 1,500,000 | 1,800,000 |
Average exercise price of options outstanding (in dollars per share) | $5.95 | $5.98 |
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) | ' | 1,200,000 |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details) (Entity affiliated with related party, Chairman and Chief Executive Officer, USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Entity affiliated with related party | Chairman and Chief Executive Officer | ' | ' |
RELATED PARTY TRANSACTIONS | ' | ' |
Amount of expenses incurred and paid | $20,480 | $70,525 |
SEGMENTED_INFORMATION_Details
SEGMENTED INFORMATION (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Operating Segment Reporting | ' | ' | ' |
Gold and silver sales | $11,130 | $13,498 | ' |
Production costs applicable to sales | -8,527 | -10,593 | ' |
Mine construction costs | -939 | ' | ' |
Mine development costs | -1,568 | -471 | ' |
Exploration costs | -2,680 | -14,600 | ' |
Income on investment in Minera Santa Cruz S.A. (net of amortization) | 7,029 | -237 | ' |
Operating income (loss) | -562 | -18,367 | ' |
Investment in Minera Santa Cruz S.A. | 216,031 | 212,947 | 212,947 |
Mineral property interests | 642,646 | 642,968 | 642,968 |
Total assets | 924,611 | 923,066 | 923,066 |
Argentina | ' | ' | ' |
Operating Segment Reporting | ' | ' | ' |
Exploration costs | -501 | -11,462 | ' |
Income on investment in Minera Santa Cruz S.A. (net of amortization) | 7,029 | -237 | ' |
Operating income (loss) | 6,258 | -11,912 | ' |
Investment in Minera Santa Cruz S.A. | 216,031 | 212,947 | ' |
Mineral property interests | 458,203 | 458,203 | ' |
Total assets | 677,246 | 674,269 | ' |
Mexico | ' | ' | ' |
Operating Segment Reporting | ' | ' | ' |
Gold and silver sales | 11,130 | 13,498 | ' |
Production costs applicable to sales | -8,527 | -10,593 | ' |
Mine construction costs | -939 | ' | ' |
Mine development costs | -1,568 | -471 | ' |
Exploration costs | -1,388 | -2,485 | ' |
Operating income (loss) | -3,048 | -2,050 | ' |
Mineral property interests | 11,662 | 11,984 | ' |
Total assets | 57,433 | 54,131 | ' |
United States | ' | ' | ' |
Operating Segment Reporting | ' | ' | ' |
Exploration costs | -686 | -580 | ' |
Operating income (loss) | -1,429 | -945 | ' |
Mineral property interests | 172,781 | 172,781 | ' |
Total assets | 176,862 | 177,248 | ' |
Corporate & Other | ' | ' | ' |
Operating Segment Reporting | ' | ' | ' |
Exploration costs | -105 | -73 | ' |
Operating income (loss) | -2,343 | -3,460 | ' |
Total assets | $13,070 | $17,418 | ' |
FAIR_VALUE_ACCOUNTING_Details
FAIR VALUE ACCOUNTING (Details) (USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Dec. 31, 2013 | |
item | item | |
Liabilities: | ' | ' |
Litigation settlement liabilities | $400,000 | ' |
Number of shares of common stock required to be issued as a part of settlement | 156,500 | ' |
Number of vendors to which shares of common stock are required to be issued as a part of settlement | 1 | 1 |
Recurring | Total | ' | ' |
Assets: | ' | ' |
Cash and cash equivalents | 19,471,000 | 24,321,000 |
Assets | 19,471,000 | 24,321,000 |
Liabilities: | ' | ' |
Accounts payable and accrued liabilities | 371,000 | 177,000 |
Liabilities | 371,000 | 177,000 |
Recurring | Level 1 | ' | ' |
Assets: | ' | ' |
Cash and cash equivalents | 19,471,000 | 24,321,000 |
Assets | 19,471,000 | 24,321,000 |
Liabilities: | ' | ' |
Accounts payable and accrued liabilities | 371,000 | 177,000 |
Liabilities | $371,000 | 177,000 |