Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Nov. 05, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'McEwen Mining Inc. | ' |
Entity Central Index Key | '0000314203 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-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 | ' | 270,220,384 |
Exchangeable Common Stock, Shares Outstanding | ' | 28,879,495 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
REVENUE: | ' | ' | ' | ' |
Gold and silver sales | $8,853 | $11,778 | $31,620 | $35,735 |
Total Revenue | 8,853 | 11,778 | 31,620 | 35,735 |
COSTS AND EXPENSES: | ' | ' | ' | ' |
Production costs applicable to sales | 10,997 | 7,907 | 30,424 | 26,778 |
Mine construction costs | 567 | 662 | 1,723 | 662 |
Mine development costs | 31 | 85 | 1,754 | 654 |
Exploration costs | 2,306 | 2,575 | 7,623 | 22,064 |
Property holding costs | 2,380 | 2,384 | 4,568 | 4,077 |
General and administrative expenses | 2,549 | 2,496 | 8,989 | 10,905 |
Depreciation | 239 | 204 | 693 | 731 |
Accretion of asset retirement obligation (note 3) | 100 | 113 | 309 | 347 |
Loss (Income) on investment in Minera Santa Cruz S.A., net of amortization (note 4) | 4,441 | -2,040 | -150 | -252 |
Impairment of investment in MSC(note 4) | ' | ' | ' | 95,878 |
Impairment of mineral property interests and property and equipment (note 3) | ' | 6,287 | 120,398 | 34,016 |
(Gain) loss on sale of assets | -8 | -50 | -26 | 6,741 |
Total costs and expenses | 23,602 | 20,623 | 176,305 | 202,601 |
Operating loss | -14,749 | -8,845 | -144,685 | -166,866 |
OTHER INCOME (EXPENSE): | ' | ' | ' | ' |
Interest income | 347 | 60 | 456 | 199 |
Registration Taxes | -6,712 | ' | -6,712 | ' |
Gain on litigation settlement | ' | ' | ' | 560 |
Gain (loss) on sales of gold and silver | ' | 51 | ' | -223 |
Foreign currency loss | -633 | -159 | -932 | -1,094 |
Total other income (expense) | -6,998 | -48 | -7,188 | -558 |
Loss before income taxes | -21,747 | -8,893 | -151,873 | -167,424 |
Income tax recovery (note 8) | 8,714 | 12,157 | 52,705 | 31,025 |
Net (loss) income | -13,033 | 3,264 | -99,168 | -136,399 |
OTHER COMPREHENSIVE INCOME (LOSS): | ' | ' | ' | ' |
Unrealized (loss) gain on available-for-sale securities, net of taxes | -2 | ' | 1 | 3 |
Comprehensive (loss) income | ($13,035) | $3,264 | ($99,167) | ($136,396) |
Net (loss) income per share (note 9): | ' | ' | ' | ' |
Basic (in dollars per share) | ($0.04) | $0.01 | ($0.33) | ($0.46) |
Diluted (in dollars per share) | ($0.04) | $0.01 | ($0.33) | ($0.46) |
Weighted average common shares outstanding (thousands) (note 9): | ' | ' | ' | ' |
Basic (in shares) | 297,164 | 297,125 | 297,162 | 297,001 |
Diluted (in shares) | 297,164 | 297,899 | 297,162 | 297,001 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $17,622 | $24,321 |
IVA taxes receivable | 10,873 | 11,591 |
Inventories (note 2) | 9,202 | 8,800 |
Other current assets | 2,005 | 2,059 |
Total current assets | 39,702 | 46,771 |
Mineral property interests (note 3) | 521,526 | 642,968 |
Restricted time deposits for reclamation bonding (note 3) | 2 | 5,183 |
Investment in Minera Santa Cruz S.A. (note 4) | 203,614 | 212,947 |
Property and equipment, net (note 5) | 18,085 | 15,143 |
Other assets (note 13) | 531 | 54 |
TOTAL ASSETS | 783,460 | 923,066 |
Current liabilities: | ' | ' |
Accounts payable and accrued liabilities | 18,310 | 9,797 |
Current portion of asset retirement obligation (note 3) | 1,458 | 1,392 |
Total current liabilities | 19,768 | 11,189 |
Asset retirement obligation, less current portion (note 3) | 5,976 | 5,855 |
Deferred income tax liability (note 8) | 106,150 | 158,855 |
Deferred rent expense | 328 | ' |
Other liabilities | 400 | 400 |
Total liabilities | 132,622 | 176,299 |
Commitments and Contingencies (Note 13) | ' | ' |
Shareholders' equity: | ' | ' |
Common stock, no par value, 500,000 shares authorized; Common: 268,643 as of September 30, 2014 and 264,913 shares as of December 31, 2013 issued and outstanding Exchangeable: 29,607 shares as of September 30, 2014 and 32,246 shares as of December 31, 2013 issued and outstanding | 1,357,934 | 1,354,696 |
Accumulated deficit | -706,802 | -607,634 |
Accumulated other comprehensive loss | -294 | -295 |
Total shareholders' equity | 650,838 | 746,767 |
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY | $783,460 | $923,066 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
CONSOLIDATED BALANCE SHEETS | ' | ' |
Common stock, par value | $0 | $0 |
Common stock, shares authorized | 500,000 | 500,000 |
Common, shares issued | 268,643 | 264,913 |
Common, shares outstanding | 268,643 | 264,913 |
Exchangeable, shares issued | 29,607 | 32,246 |
Exchangeable, shares outstanding | 29,607 | 32,246 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (USD $) | Common Stock | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Total |
In Thousands, except Share data, unless otherwise specified | ||||
Balance at Dec. 31, 2012 | $1,349,777 | ($294) | ($459,892) | $889,591 |
Balance (in shares) at Dec. 31, 2012 | 296,025,000 | ' | ' | ' |
Increase (Decrease) in Shareholders' Equity | ' | ' | ' | ' |
Stock-based compensation | 965 | ' | ' | 965 |
Exercise of stock options | 171 | ' | ' | 171 |
Exercise of stock options (in shares) | 93,000 | ' | ' | ' |
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) | 41,000 | ' | ' | ' |
Unrealized gain on available-for-sale securities, net of taxes | ' | 3 | ' | 3 |
Net loss | ' | ' | -136,399 | -136,399 |
Balance at Sep. 30, 2013 | 1,354,279 | -291 | -596,291 | 757,697 |
Balance (in shares) at Sep. 30, 2013 | 297,159,000 | ' | ' | ' |
Balance at Dec. 31, 2013 | 1,354,696 | -295 | -607,634 | 746,767 |
Balance (in shares) at Dec. 31, 2013 | 297,159,000 | ' | ' | ' |
Increase (Decrease) in Shareholders' Equity | ' | ' | ' | ' |
Stock-based compensation | 852 | ' | ' | 852 |
Exercise of stock options | 1,382 | ' | ' | 1,382 |
Exercise of stock options (in shares) | 697,000 | ' | ' | 697,300 |
Shares issued for settlement of accounts payable | 1,004 | ' | ' | 1,004 |
Number of shares issued to settle part of account payables (in shares) | 393,190,000 | ' | ' | 393,190 |
Unrealized gain on available-for-sale securities, net of taxes | ' | 1 | ' | 1 |
Net loss | ' | ' | -99,168 | -99,168 |
Balance at Sep. 30, 2014 | $1,357,934 | ($294) | ($706,802) | $650,838 |
Balance (in shares) at Sep. 30, 2014 | 298,249,000 | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Cash paid to suppliers and employees | ($51,300) | ($74,359) |
Cash received from gold and silver sales | 31,620 | 34,711 |
Dividends received from Minera Santa Cruz S.A. | 9,483 | 1,242 |
Proceeds from sale of gold and silver bullion | ' | 1,467 |
Lease incentive | 328 | ' |
Interest received | 456 | 139 |
Cash used in operating activities | -9,413 | -36,800 |
Cash flows from investing activities: | ' | ' |
Acquisition of mineral property interests | ' | -150 |
Additions to property and equipment | -2,691 | -3,710 |
Decrease in restricted time deposits for reclamation bonding | 5,181 | ' |
Deposit for surety bonds for reclamation bonding | -481 | ' |
Proceeds from disposal of property and equipment | 39 | 1,449 |
Cash provided by (used in) investing activities | 2,048 | -2,411 |
Cash flows from financing activities: | ' | ' |
Exercise of stock options | 1,382 | 171 |
Cash provided by financing activities | 1,382 | 171 |
Effect of exchange rate change on cash and cash equivalents | -716 | -819 |
Decrease in cash and cash equivalents | -6,699 | -39,859 |
Cash and cash equivalents, beginning of period | 24,321 | 70,921 |
Cash and cash equivalents, end of period | 17,622 | 31,062 |
Reconciliation of net loss to cash used in operating activities: | ' | ' |
Net loss | -99,168 | -136,399 |
Adjustments to reconcile net loss from operating activities: | ' | ' |
(Income) loss on investment in Minera Santa Cruz S.A., net of amortization | -150 | -252 |
Impairment of investment in MSC | ' | 95,878 |
Impairment of mineral property interests and property and equipment | 120,398 | 34,016 |
(Gain) loss on sale of assets | -26 | 6,741 |
Lease incentive | 328 | ' |
Income tax recovery | -52,705 | -31,025 |
Gain on litigation settlement | ' | -560 |
Unrealized loss on gold and silver bullion | ' | 223 |
Proceeds from sale of gold and silver bullion | ' | 1,467 |
Stock-based compensation | 852 | 965 |
Shares issued to supplier for settlement of accounts payable | 1,004 | ' |
Depreciation | 693 | 731 |
Accretion of asset retirement obligation | 309 | 347 |
Amortization of mineral property interests and asset retirement obligations | 923 | 1,244 |
Foreign exchange loss | 716 | 819 |
Change in non-cash working capital items: | ' | ' |
Decrease in IVA taxes receivable, net of collection of $50419 (2013 - $nil) | 717 | 979 |
(Increase) in other assets related to operations | -342 | -1,078 |
Increase (decrease) in liabilities related to operations | 7,555 | -12,138 |
Dividend receivable from Minera Santa Cruz S.A | 9,483 | 1,242 |
Cash used in operating activities | ($9,413) | ($36,800) |
CONSOLIDATED_STATEMENTS_OF_CAS1
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
CONSOLIDATED STATEMENTS OF CASH FLOWS | ' | ' |
Collection Of Value Added Taxes Receivable | $5,049 | $0 |
NATURE_OF_OPERATIONS_AND_SUMMA
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2014 | |
The Company | ' |
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. 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 annual 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 and nine months ended September 30, 2014 and 2013, the Consolidated Balance Sheets as at September 30, 2014 (unaudited) and December 31, 2013, the unaudited Consolidated Statement of Changes in Shareholders’ Equity for the nine months ended September 30, 2014 and 2013, and the unaudited Consolidated Statements of Cash Flows for the nine months ended September 30, 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 annual 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, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2013-11 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 was 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, the FASB issued ASU 2013-05 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 was 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 — Going Concern — Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern: In August 2014, Accounting Standards Codification (“ASC”) 205-40 guidance was amended to provide guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The amendments require management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. Specifically, the amendments (1) provide a definition of the term substantial doubt, (2) require an evaluation every reporting period including interim periods, (3) provide principles for considering the mitigating effect of management’s plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). The amendments in this update are effective for the Company’s fiscal year beginning January 1, 2015, with early application permitted. The updated guidance is not expected to have an impact on the Company’s consolidated financial statements. | |
Presentation of Financial Statements and Property, Plant and Equipment — Reporting Discontinued Operations and Disclosures of Components of an Entity: In April 2014, ASC 205 and ASC 360 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; or (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. | |
Revenue from Contracts with Customers: In May 2014, ASC 606 was issued related to revenue from contracts with customers. Under this guidance, revenue is recognized when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. The updated standard will replace most existing revenue recognition guidance under GAAP when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. Early adoption is not permitted. The standard will be effective for the Company’s fiscal year beginning January 1, 2017, including interim reporting periods within that year. The Company is evaluating the effect that the updated standard will have on its consolidated financial position, results of operations or cash flows. | |
INVENTORIES
INVENTORIES | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
INVENTORIES | ' | |||||||
INVENTORIES | ' | |||||||
NOTE 2 INVENTORIES | ||||||||
Inventories at September 30, 2014 and December 31, 2013 consist of the following: | ||||||||
September 30, 2014 | December 31, 2013 | |||||||
(in thousands) | ||||||||
Ore on leach pads | $ | 1,730 | $ | 2,749 | ||||
In-process inventory | 4,417 | 2,681 | ||||||
Stockpiles | 382 | 778 | ||||||
Precious metals | 1,467 | 1,300 | ||||||
Materials and supplies | 1,206 | 1,292 | ||||||
Inventories | $ | 9,202 | $ | 8,800 | ||||
The Company recorded write-downs of $0.6 million, $0.9 million and $0.2 million on its ore on leach pads inventory, in-process inventory, and precious metals inventory, respectively, during the three months ended September 30, 2014, for a total of $1.7 million, to reduce the carrying value of its metal inventories to net realizable value. The write-down was due to a high volume of waste material being extracted, higher operating costs and lower metal prices during the third quarter of 2014. The inventory write-downs of $1.7 million are included as a component of Production Costs Applicable to Sales. | ||||||||
MINERAL_PROPERTY_INTERESTS_AND
MINERAL PROPERTY INTERESTS AND ASSET RETIREMENT OBLIGATIONS | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
MINERAL PROPERTY INTERESTS AND ASSET RETIREMENT OBLIGATIONS | ' | |||||||||||||||
MINERAL PROPERTY INTERESTS AND ASSET RETIREMENT OBLIGATIONS | ' | |||||||||||||||
NOTE 3 MINERAL PROPERTY INTERESTS AND ASSET RETIREMENT OBLIGATIONS | ||||||||||||||||
Mineral Property Interests | ||||||||||||||||
During the second quarter of 2014, the Company recorded an impairment charge of $120.4 million relating to its Los Azules copper exploration project (“Los Azules Project”). The Company conducts a review of potential triggering events for all its mineral projects on a quarterly basis. When events or changes in circumstances indicate that the related carrying amounts may not be recoverable, the Company carries out a review and evaluation of its long-lived assets for impairment, in accordance with its accounting policy. Such a triggering event was identified in the second quarter of 2014 with respect to the Company’s Los Azules Project. The triggering event identified was a contemporaneous acquisition of a copper project located in Argentina, which shared similarities with the Los Azules Project due to its scale, location, and stage of development. Based on the announcement day value of the similar project, the estimated market value per pound of copper equivalent mineralized material from this transaction was below the carrying value per pound of estimated copper equivalent mineralized material of the Los Azules Project, indicating a potential significant decrease in the market price of the Los Azules Project, in accordance with ASC 360-35-21-a, and therefore a requirement to test the Los Azules Project for recoverability. To assist in performing a recoverability test, the Company engaged a third-party valuation firm who used the observed market value per pound of copper equivalent mineralized material based on this contemporaneous and other comparable transactions to estimate the fair value of the Los Azules Project. The carrying value of the property exceeded its estimated fair value, resulting in an impairment charge of $120.4 million, along with a resulting deferred income tax recovery of $22.5 million, being recorded in the Statement of Operations and Comprehensive Income (Loss) for the nine months ended September 30, 2014. | ||||||||||||||||
Impairments recorded in the second and third quarters of 2013 related to the Company’s exploration properties in Santa Cruz, Argentina, and Nevada, respectively. The impairments related to the Santa Cruz properties were primarily due to an unexpected significant decline in gold and silver market prices, continued inflationary pressures and a new tax on mining reserves in the Province, resulting in a depressed market for exploration properties in Argentina. The impairment related to the Nevada properties were a result of the Company allowing certain claims in the West Battle Mountain Complex to lapse, in an effort to rationalize the Company’s mineral property interests and focus its exploration program on more prospective areas. The impairment charges for the Santa Cruz and Nevada properties were of $27.7 million and $6.3 million, respectively, along with a resulting reduction in deferred tax liability and recovery of deferred income taxes of $2.3 million and $2.2 million, respectively. | ||||||||||||||||
Impairment charges were recorded on the following mineral property interests for the three and nine months ended September 30, 2014 and 2013. | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
Name of Property/Complex | Segment | 2014 | 2013 | 2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||||||
Telken Tenements | Argentina | $ | — | $ | — | $ | — | $ | 13,792 | |||||||
Este Tenements | Argentina | — | — | — | 2,784 | |||||||||||
Piramides Tenements | Argentina | — | — | — | 5,079 | |||||||||||
Tobias Tenements | Argentina | — | — | — | 6,074 | |||||||||||
Los Azules Project | Argentina | — | — | 120,398 | — | |||||||||||
West Battle Mountain Complex | Nevada | — | 6,287 | — | 6,287 | |||||||||||
Total impairments | $ | — | $ | 6,287 | $ | 120,398 | $ | 34,016 | ||||||||
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 $2.7 million as of September 30, 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 September 30, 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. 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. During the third quarter of 2014, the Company replaced its cash bonding of $4.8 million with surety bonds of the same amounts, as discussed in Note 13, Contingencies. | ||||||||||||||||
The current undiscounted estimate of the reclamation costs for existing disturbances at the El Gallo 1 mine was $4.6 million as of September 30, 2014. Expenses are expected to be incurred between the years 2015 and 2018. Under Mexican regulations, bonding of projected reclamation costs is not required. | ||||||||||||||||
A reconciliation of the Company’s asset retirement obligations for the nine months ended September 30, 2014 and for the year ended December 31, 2013 are as follows: | ||||||||||||||||
Nine months ended | Year Ended | |||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||
(in thousands) | ||||||||||||||||
Asset retirement obligation liability, beginning balance | $ | 7,247 | $ | 6,359 | ||||||||||||
Settlements | (43 | ) | (60 | ) | ||||||||||||
Accretion of liability | 309 | 461 | ||||||||||||||
Adjustment reflecting updated estimates | (79 | ) | 487 | |||||||||||||
Asset retirement obligation liability, ending balance | $ | 7,434 | $ | 7,247 | ||||||||||||
As at September 30, 2014, the current portion of the asset retirement obligation was $1.5 million (December 31, 2013 - $1.4 million). | ||||||||||||||||
Amortization of Mineral Property Interests and Asset Retirement Costs | ||||||||||||||||
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 under the SEC definition, 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 and nine months ended September 30, 2014, the Company recorded $0.3 million and $1.0 million, respectively, 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 and nine months ended September 30, 2014, of which $0.1 million and $0.4 million, respectively, 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 | 9 Months Ended | |||||||||||||
Sep. 30, 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 49% attributable share of operations from its investment in MSC was a loss of $4.4 million for the three months ended September 30, 2014, and income of $0.2 million for the nine months ended September 30, 2014. This compares to income of $2.0 million and $0.3 million for the three and nine months ended September 30, 2013, respectively. These amounts are net of the amortization of the fair value increments arising from the purchase price allocation and related income tax recovery. Included in the income tax recovery is the impact of fluctuations in the exchange rate between the Argentine peso and the U.S. dollar on the peso-denominated deferred tax liability associated with the investment in MSC recorded as part of the acquisition of Minera Andes. As a devaluation of the Argentine peso relative to the U.S. dollar results in a recovery of deferred income taxes, the impact has been an increase to the Company’s income from its investment in MSC for the three and nine months ended September 30, 2014. | ||||||||||||||
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 three months 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 three months ended March 31, 2013. As a result, the income from the Company’s equity investment of 49% in MSC includes an adjustment of $1.9 million, resulting in a reduction of the Company’s Income from Investment in MSC for the nine months ended September 30, 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, continued inflationary pressures during the year, and amendments to the Santa Cruz Provincial Tax Code and Provincial Tax Law, which imposed a new tax on mining reserves in the Province of Santa Cruz. As the loss in value of the investment was considered other than temporary, an impairment of $95.9 million was recorded in the Company’s Consolidated Statement of Operations and Comprehensive Income (Loss) for the nine months ended September 30, 2013. | ||||||||||||||
During the fourth quarter of 2013, the Company entered into a vend-in agreement with MSC and subsidiaries of Hochschild pursuant to which both parties agreed to contribute to MSC the mining rights of certain Santa Cruz exploration properties. The carrying value of the Company’s properties of $35.9 million, net of 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, and is reflected in the Investment in MSC balance as at December 31, 2013. | ||||||||||||||
During the three and nine months ended September 30, 2014, the Company received $2.4 million and $9.5 million in dividends from MSC, respectively, compared to $1.2 million during the same period in 2013. | ||||||||||||||
Changes in the Company’s investment in MSC for the nine months ended September 30, 2014 and year ended December 31, 2013 are as follows: | ||||||||||||||
Nine months ended | Year ended | |||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||
(in thousands) | ||||||||||||||
Investment in MSC, beginning balance | $ | 212,947 | $ | 273,948 | ||||||||||
Attributable net income from equity investment | 149 | 2,126 | ||||||||||||
Amortization of fair value increments | (9,652 | ) | (18,425 | ) | ||||||||||
Income tax recovery | 9,653 | 17,145 | ||||||||||||
Dividend distribution | (9,483 | ) | (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 | $ | 203,614 | $ | 212,947 | ||||||||||
A summary of the operating results from MSC for the three and nine months ended September 30, 2014 and 2013 is as follows: | ||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(in thousands) | (in thousands) | |||||||||||||
Minera Santa Cruz S.A. (100%) | ||||||||||||||
Net sales | $ | 38,263 | $ | 69,663 | $ | 148,386 | $ | 182,031 | ||||||
Production costs applicable to sales | (36,136 | ) | (44,964 | ) | (117,620 | ) | (139,373 | ) | ||||||
(Loss) income from operations before extraordinary items | (5,488 | ) | 5,424 | 304 | 7,988 | |||||||||
Net (loss) income | (5,488 | ) | 5,424 | 304 | 7,988 | |||||||||
Portion attributable to McEwen Mining Inc. (49%) | ||||||||||||||
Net (loss) income | $ | (2,689 | ) | $ | 2,658 | $ | 149 | $ | 3,914 | |||||
Amortization of fair value increments | (3,522 | ) | (3,579 | ) | (9,652 | ) | (15,582 | ) | ||||||
Income tax recovery | 1,770 | 2,961 | 9,653 | 11,920 | ||||||||||
(Loss) income on investment in MSC, net of amortization | $ | (4,441 | ) | $ | 2,040 | $ | 150 | $ | 252 | |||||
As at September 30, 2014, MSC had current assets of $98.3 million, total assets of $518.5 million, current liabilities of $56.9 million and total liabilities of $141.6 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. Excluding the fair value increments from the purchase price allocation and the impairment charge recorded in the second quarter of 2013, MSC had current assets of $101.2 million, total assets of $308.9 million, current liabilities of $56.9 million, and total liabilities of $94.5 million as at September 30, 2014. | ||||||||||||||
PROPERTY_AND_EQUIPMENT
PROPERTY AND EQUIPMENT | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
PROPERTY AND EQUIPMENT | ' | |||||||
PROPERTY AND EQUIPMENT | ' | |||||||
NOTE 5 PROPERTY AND EQUIPMENT | ||||||||
As at September 30, 2014 and December 31, 2013, property and equipment consisted of the following: | ||||||||
September 30, 2014 | December 31, 2013 | |||||||
(in thousands) | ||||||||
Trucks and trailers | $ | 1,012 | $ | 1,041 | ||||
Office furniture and equipment | 2,057 | 1,163 | ||||||
Drill rigs | 998 | 998 | ||||||
Building | 1,514 | 1,469 | ||||||
Land | 8,699 | 8,672 | ||||||
Mining equipment | 1,452 | 1,206 | ||||||
Construction-in-progress | 6,292 | 3,894 | ||||||
Subtotal | $ | 22,024 | $ | 18,443 | ||||
Less: accumulated depreciation | (3,939 | ) | (3,300 | ) | ||||
Total | $ | 18,085 | $ | 15,143 | ||||
The increase in property and equipment from December 31, 2013 to September 30, 2014 was mainly in relation to leasehold improvements to the Company’s corporate office, as well as 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 and nine months ended September 30, 2014 was $0.2 million and $0.7 million, respectively (2013 - $0.2 million and $0.7 million, respectively). | ||||||||
SHAREHOLDERS_EQUITY
SHAREHOLDERS' EQUITY | 9 Months Ended |
Sep. 30, 2014 | |
SHAREHOLDERS' EQUITY | ' |
SHAREHOLDERS' EQUITY | ' |
NOTE 6 SHAREHOLDERS’ EQUITY | |
During the nine months ended September 30, 2014, 2.6 million exchangeable shares were converted into common stock. At September 30, 2014, total outstanding exchangeable shares not exchanged and not owned by the Company or its subsidiaries totaled 29.6 million. | |
During the nine months ended September 30, 2014, the Company issued approximately 697,300 shares of common stock upon exercise of stock options under the Equity Incentive Plan at a weighted average exercise price of $1.98 per share for proceeds of $1.4 million. | |
During the three and nine months ended September 30, 2014, the Company issued approximately 393,190 shares of common stock under an agreement with one of its mining contractors to settle parts of its accounts payable for services rendered above a defined tonnage threshold. As at September 30, 2014, the Company was required to issue a cumulative total of approximately 446,950 common shares. The fair value of the remaining 53,760 outstanding shares of $0.1 million is included in accounts payable and accrued liabilities on the Consolidated Balance Sheet as at September 30, 2014. | |
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
STOCK BASED COMPENSATION | ' | |||||||||
STOCK-BASED COMPENSATION | ' | |||||||||
NOTE 7 STOCK-BASED COMPENSATION | ||||||||||
During the three and nine months ended September 30, 2014, the Company granted stock options to certain employees and directors for an aggregate of 1.7 million shares of common stock at a weighted average exercise price of $2.90 per share. 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 from the date of issue. During the comparable periods in 2013, stock options granted to employees and directors amounted to 1.7 million shares of common stock at an exercise price of $2.25 per share. The principal assumptions used in applying the Black-Scholes option pricing model for these awards were as follows: | ||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||
2014 | 2013 | 2014 | 2013 | |||||||
Risk-free interest rate | 1.01% | 0.5% to 0.86% | 1.01% | 0.50% | ||||||
Dividend yield | n/a | n/a | n/a | n/a | ||||||
Volatility factor of the expected market price of common stock | 70% | 66% to 69% | 70% | 66% | ||||||
Weighted-average expected life of option | 3.5 years | 3.5 years | 3.5 years | 3.5 years | ||||||
Weighted-average grant date fair value | $1.45 | $1.02 | $1.45 | $1.01 | ||||||
During the three and nine months ended September 30, 2014, the Company recorded stock option expense of $0.2 million and $0.9 million, respectively. This compares to $0.3 million and $1.0 million for the three and nine months ended September 30, 2013. | ||||||||||
INCOME_TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 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% to losses before taxes primarily as a result of valuation allowances being applied to losses and due to changes in the deferred tax liability associated with mineral property interests acquired in the Minera Andes acquisition. This deferred tax liability is impacted by fluctuations in the foreign exchange rate between the Argentine peso and U.S. dollar. For the three and nine months ended September 30, 2014, the Company recorded an income tax recovery of $2.3 million and $23.7 million, respectively, as a result of the Argentine peso devaluation, compared to $9.9 million and $23.6 million for the three and nine months ended September 30, 2013, respectively. Further, the income tax recovery for the nine months ended September 30, 2014 includes $22.5 million associated with the impairment of the Los Azules Project, discussed in Note 3, Mineral Property Interests and Asset Retirement Obligations. This compares to an income tax recovery of $2.2 million and $7.0 million related to mineral property interests sold or impaired in the three and nine months ended September 30, 2013, respectively. | |
Also in the third quarter of 2014, the Company recorded an adjustment to decrease deferred tax liabilities by $5.8 million to record the tax effect of timing differences related to exploration expenditures incurred in Argentina in prior years and deductible for tax purposes in future years. The adjustment is included in deferred tax recovery in the three and nine months ended September 30, 2014. | |
NET_LOSS_INCOME_PER_SHARE
NET (LOSS) INCOME PER SHARE | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
NET (LOSS) INCOME PER SHARE | ' | |||||||||||||
NET (LOSS) INCOME PER SHARE | ' | |||||||||||||
NOTE 9 NET (LOSS) INCOME PER SHARE | ||||||||||||||
Basic net (loss) income per share is computed by dividing the net (loss) income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted net (loss) income 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 (loss) income per share for the three and nine months ended September 30, 2014 and 2013: | ||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(in thousands, except per share) | ||||||||||||||
Net (loss) income | $ | (13,033 | ) | $ | 3,264 | $ | (99,168 | ) | $ | (136,399 | ) | |||
Weighted average common shares (thousands): | ||||||||||||||
Basic | 297,164 | 297,125 | 297,162 | 297,001 | ||||||||||
Effect of employee stock-based awards | — | 774 | — | — | ||||||||||
Diluted | 297,164 | 297,899 | 297,162 | 297,001 | ||||||||||
Net (loss) income per share: | ||||||||||||||
Basic | $ | (0.04 | ) | $ | 0.01 | $ | (0.33 | ) | $ | (0.46 | ) | |||
Diluted | $ | (0.04 | ) | $ | 0.01 | $ | (0.33 | ) | $ | (0.46 | ) | |||
For the three months ended September 30, 2014, options to purchase 3.2 million shares of common stock outstanding at September 30, 2014 (September 30, 2013 — 2.1 million) at an average exercise price of $4.28 per share (September 30, 2013 — $5.01) 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 September 30, 2014 and 2013, respectively. Other outstanding options to purchase 3.2 million shares of common stock were not included in the computation of diluted weighted average shares in the three months ended September 30, 2014 because their effect would have been anti-dilutive. | ||||||||||||||
For the nine months ended September 30, 2014, options to purchase 3.2 million shares of common stock outstanding at September 30, 2014 (September 30, 2013 — 2.0 million options) at an average exercise price of $4.28 per share (September 30, 2013 — $5.16) 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 September 30, 2014 and 2013, respectively. Other outstanding options to purchase 3.2 million shares of common stock (September 30, 2013 — 3.6 million options) were not included in the computation of diluted weighted average shares in the nine months ended September 30, 2014 and 2013, respectively, because their effect would have been anti-dilutive. | ||||||||||||||
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2014 | |
RELATED PARTY TRANSACTIONS | ' |
RELATED PARTY TRANSACTIONS | ' |
NOTE 10 RELATED PARTY TRANSACTIONS | |
For the three and nine months ended September 30, 2014, the Company incurred and paid $25,237 and $63,755, respectively, to an entity affiliated with the Company’s Chairman and Chief Executive Officer for the use of an aircraft, compared to $9,100 and $79,625 for the three and nine months ended September 30, 2013, respectively. | |
SEGMENTED_INFORMATION
SEGMENTED INFORMATION | 9 Months Ended | ||||||||||||||||
Sep. 30, 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 operating segments as of, and for the three and nine months ended September 30, 2014 and 2013 is as follows: | |||||||||||||||||
Corporate | |||||||||||||||||
Argentina | Mexico | U.S. | & Other | Total | |||||||||||||
(in thousands) | |||||||||||||||||
For the three months ended September 30, 2014 | |||||||||||||||||
Gold and silver sales | $ | — | $ | 8,853 | $ | — | $ | — | $ | 8,853 | |||||||
Production costs applicable to sales | — | (10,997 | ) | — | — | (10,997 | ) | ||||||||||
Mine construction costs | — | (567 | ) | — | — | (567 | ) | ||||||||||
Mine development costs | — | (31 | ) | — | — | (31 | ) | ||||||||||
Exploration costs | (190 | ) | (1,201 | ) | (851 | ) | (64 | ) | (2,306 | ) | |||||||
General and administrative expenses | (210 | ) | (910 | ) | (50 | ) | (1,379 | ) | (2,549 | ) | |||||||
Impairment of mineral property interests and property and equipment | — | — | — | — | — | ||||||||||||
Loss on investment in Minera Santa Cruz S.A. (net of amortization) | (4,441 | ) | — | — | — | (4,441 | ) | ||||||||||
Operating loss | (4,915 | ) | (5,936 | ) | (2,392 | ) | (1,506 | ) | (14,749 | ) | |||||||
For the nine months ended September 30, 2014 | |||||||||||||||||
Gold and silver sales | $ | — | $ | 31,620 | $ | — | $ | — | $ | 31,620 | |||||||
Production costs applicable to sales | — | (30,424 | ) | — | — | (30,424 | ) | ||||||||||
Mine construction costs | — | (1,723 | ) | — | — | (1,723 | ) | ||||||||||
Mine development costs | — | (1,754 | ) | — | — | (1,754 | ) | ||||||||||
Exploration costs | (940 | ) | (4,077 | ) | (2,368 | ) | (238 | ) | (7,623 | ) | |||||||
General and administrative expenses | (563 | ) | (2,418 | ) | (163 | ) | (5,845 | ) | (8,989 | ) | |||||||
Impairment of mineral property interests and property and equipment | (120,398 | ) | — | — | — | (120,398 | ) | ||||||||||
Income on investment in Minera Santa Cruz S.A. (net of amortization) | 150 | — | — | — | 150 | ||||||||||||
Operating loss | (122,474 | ) | (11,134 | ) | (4,846 | ) | (6,231 | ) | (144,685 | ) | |||||||
As at September 30, 2014 | |||||||||||||||||
Investment in Minera Santa Cruz S.A. | 203,614 | — | — | — | 203,614 | ||||||||||||
Mineral property interests | 337,806 | 11,018 | 172,702 | — | 521,526 | ||||||||||||
Total assets | 544,628 | 58,865 | 173,259 | 6,708 | 783,460 | ||||||||||||
Corporate | |||||||||||||||||
Argentina | Mexico | U.S. | & Other | Total | |||||||||||||
(in thousands) | |||||||||||||||||
For the three months ended September 30, 2013 | |||||||||||||||||
Gold and silver sales | $ | — | $ | 11,778 | $ | — | $ | — | $ | 11,778 | |||||||
Production costs applicable to sales | — | (7,907 | ) | — | — | (7,907 | ) | ||||||||||
Mine construction costs | — | (662 | ) | — | — | (662 | ) | ||||||||||
Mine development costs | — | (85 | ) | — | — | (85 | ) | ||||||||||
Exploration costs | (631 | ) | (1,148 | ) | (634 | ) | (162 | ) | (2,575 | ) | |||||||
Income on investment in Minera Santa Cruz S.A. (net of amortization) | 2,040 | — | — | — | 2,040 | ||||||||||||
Impairment of mineral property interests and property and equipment | — | — | (6,287 | ) | — | (6,287 | ) | ||||||||||
Gain on sale of assets | 10 | — | 40 | — | 50 | ||||||||||||
Operating income (loss) | 1,131 | 393 | (8,499 | ) | (1,870 | ) | (8,845 | ) | |||||||||
For the nine months ended September 30, 2013 | |||||||||||||||||
Gold and silver sales | $ | — | $ | 35,735 | $ | — | $ | — | $ | 35,735 | |||||||
Production costs applicable to sales | — | (26,778 | ) | — | — | (26,778 | ) | ||||||||||
Mine construction costs | — | (662 | ) | — | — | (662 | ) | ||||||||||
Mine development costs | — | (654 | ) | — | — | (654 | ) | ||||||||||
Exploration costs | (14,110 | ) | (5,582 | ) | (2,086 | ) | (288 | ) | (22,066 | ) | |||||||
Income on investment in Minera Santa Cruz S.A. (net of amortization) | 252 | — | — | — | 252 | ||||||||||||
Impairment of investment in MSC | (95,878 | ) | — | — | — | (95,878 | ) | ||||||||||
Impairment of mineral property interests and property and equipment | (27,729 | ) | — | (6,287 | ) | — | (34,016 | ) | |||||||||
Gain (loss) on sale of assets | (316 | ) | — | (6,428 | ) | 3 | (6,741 | ) | |||||||||
Operating loss | (139,297 | ) | (2,627 | ) | (17,102 | ) | (7,840 | ) | (166,866 | ) | |||||||
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 | 9 Months Ended | |||||||||||||
Sep. 30, 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 1Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; | ||||||||||||||
Level 2Quoted 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 3Prices 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 table identifies the fair value of the Company’s financial assets and liabilities which are recorded at fair value as reported in the Consolidated Balance Sheets at September 30, 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 September 30, 2014 | ||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||
(in thousands) | ||||||||||||||
Liabilities: | ||||||||||||||
Portion of accounts payable and accrued liabilities recorded at fair value | $ | 105 | $ | — | $ | 105 | $ | — | ||||||
$ | 105 | $ | — | $ | 105 | $ | — | |||||||
Fair Value as at December 31, 2013 | ||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||
(in thousands) | ||||||||||||||
Liabilities: | ||||||||||||||
Portion of accounts payable and accrued liabilities recorded at fair value | 177 | — | 177 | — | ||||||||||
$ | 177 | $ | — | $ | 177 | $ | — | |||||||
As at September 30, 2014, accounts payable included an accrual of $0.1 million for the fair value of approximately 53,760 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. | ||||||||||||||
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
COMMITMENTS AND CONTINGENCIES | ' |
NOTE 13 COMMITMENTS AND CONTINGENCIES | |
Surety Bonds | |
As part of its ongoing business and operations, the Company is required to provide bonding for its environmental reclamation obligations in the United States, as discussed in Note 4, Mineral Properties and Asset Retirement Obligations. These surety bonds are available for draw down in the event the Company does not perform its reclamation obligations. When the specific reclamation requirements are met, the beneficiary of the surety bonds will cancel and/or return the instrument to the issuing entity. The Company believes it is in compliance with all applicable bonding obligations and will be able to satisfy future bonding requirements, through existing or alternative means, as they arise. As at September 30, 2014, there were $4.8 million of outstanding surety bonds (December 31, 2013 - nil). The annual financing fees are 1.5% of the value of the surety bonds, with an upfront 10% deposit of $0.5 million which is included in Other Assets in the Consolidated Balance Sheet. | |
SUBSEQUENT_EVENT
SUBSEQUENT EVENT | 9 Months Ended |
Sep. 30, 2014 | |
SUBSEQUENT EVENTS | ' |
SUBSEQUENT EVENT | ' |
NOTE 14 SUBSEQUENT EVENTS | |
In October 2014, the Company entered into a transaction with TNR Gold Corp. (“TNR”) (and certain of its subsidiaries) whereby TNR’s back-in right to acquire up to 25% of the equity in certain portions of the Los Azules Project, has been terminated. In exchange for the termination of the back-in right, TNR will receive a 0.4% net smelter royalty on the Los Azules Project, 850,000 shares of the Company’s common stock and, if Company sells all of its interest in the project within thirty six months of closing the transaction, a bonus payment equal to 1% of the gross proceeds. | |
In October 2014, the Company also subscribed, by way of a private placement, 8,333,333 common share units (the “Units”) of Visible Gold Mines Inc. (“Visible Gold”) at a price of C$0.06 per Unit for an aggregate amount of approximately $0.4 million (C$0.5 million). Each Unit consists of one common share and one warrant (the “Transaction”). Each warrant entitles the Company to purchase one additional common share in Visible Gold at a price of $0.10 until April 27, 2016. The common shares and warrants purchased pursuant to the Transaction represent ownership of approximately 10.4% of the issued and outstanding shares of Visible Gold post closing (or approximately 18.9% on a partially diluted basis). | |
INVENTORIES_Tables
INVENTORIES (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
INVENTORIES | ' | |||||||
Schedule of inventories | ' | |||||||
September 30, 2014 | December 31, 2013 | |||||||
(in thousands) | ||||||||
Ore on leach pads | $ | 1,730 | $ | 2,749 | ||||
In-process inventory | 4,417 | 2,681 | ||||||
Stockpiles | 382 | 778 | ||||||
Precious metals | 1,467 | 1,300 | ||||||
Materials and supplies | 1,206 | 1,292 | ||||||
Inventories | $ | 9,202 | $ | 8,800 | ||||
MINERAL_PROPERTY_INTERESTS_AND1
MINERAL PROPERTY INTERESTS AND ASSET RETIREMENT OBLIGATIONS (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
MINERAL PROPERTY INTERESTS AND ASSET RETIREMENT OBLIGATIONS | ' | |||||||||||||||
Schedule of impairment charges on mineral property | ' | |||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
Name of Property/Complex | Segment | 2014 | 2013 | 2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||||||
Telken Tenements | Argentina | $ | — | $ | — | $ | — | $ | 13,792 | |||||||
Este Tenements | Argentina | — | — | — | 2,784 | |||||||||||
Piramides Tenements | Argentina | — | — | — | 5,079 | |||||||||||
Tobias Tenements | Argentina | — | — | — | 6,074 | |||||||||||
Los Azules Project | Argentina | — | — | 120,398 | — | |||||||||||
West Battle Mountain Complex | Nevada | — | 6,287 | — | 6,287 | |||||||||||
Total impairments | $ | — | $ | 6,287 | $ | 120,398 | $ | 34,016 | ||||||||
Schedule of reconciliation of asset retirement obligations | ' | |||||||||||||||
Nine months ended | Year Ended | |||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||
(in thousands) | ||||||||||||||||
Asset retirement obligation liability, beginning balance | $ | 7,247 | $ | 6,359 | ||||||||||||
Settlements | (43 | ) | (60 | ) | ||||||||||||
Accretion of liability | 309 | 461 | ||||||||||||||
Adjustment reflecting updated estimates | (79 | ) | 487 | |||||||||||||
Asset retirement obligation liability, ending balance | $ | 7,434 | $ | 7,247 | ||||||||||||
INVESTMENT_IN_MINERA_SANTA_CRU1
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE | ' | |||||||||||||
Schedule of change in the entity's investment in MSC | ' | |||||||||||||
Nine months ended | Year ended | |||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||
(in thousands) | ||||||||||||||
Investment in MSC, beginning balance | $ | 212,947 | $ | 273,948 | ||||||||||
Attributable net income from equity investment | 149 | 2,126 | ||||||||||||
Amortization of fair value increments | (9,652 | ) | (18,425 | ) | ||||||||||
Income tax recovery | 9,653 | 17,145 | ||||||||||||
Dividend distribution | (9,483 | ) | (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 | $ | 203,614 | $ | 212,947 | ||||||||||
Summary of MSC's financial information from operations | ' | |||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(in thousands) | (in thousands) | |||||||||||||
Minera Santa Cruz S.A. (100%) | ||||||||||||||
Net sales | $ | 38,263 | $ | 69,663 | $ | 148,386 | $ | 182,031 | ||||||
Production costs applicable to sales | (36,136 | ) | (44,964 | ) | (117,620 | ) | (139,373 | ) | ||||||
(Loss) income from operations before extraordinary items | (5,488 | ) | 5,424 | 304 | 7,988 | |||||||||
Net (loss) income | (5,488 | ) | 5,424 | 304 | 7,988 | |||||||||
Portion attributable to McEwen Mining Inc. (49%) | ||||||||||||||
Net (loss) income | $ | (2,689 | ) | $ | 2,658 | $ | 149 | $ | 3,914 | |||||
Amortization of fair value increments | (3,522 | ) | (3,579 | ) | (9,652 | ) | (15,582 | ) | ||||||
Income tax recovery | 1,770 | 2,961 | 9,653 | 11,920 | ||||||||||
(Loss) income on investment in MSC, net of amortization | $ | (4,441 | ) | $ | 2,040 | $ | 150 | $ | 252 | |||||
PROPERTY_AND_EQUIPMENT_Tables
PROPERTY AND EQUIPMENT (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
PROPERTY AND EQUIPMENT | ' | |||||||
Schedule of property and equipment | ' | |||||||
September 30, 2014 | December 31, 2013 | |||||||
(in thousands) | ||||||||
Trucks and trailers | $ | 1,012 | $ | 1,041 | ||||
Office furniture and equipment | 2,057 | 1,163 | ||||||
Drill rigs | 998 | 998 | ||||||
Building | 1,514 | 1,469 | ||||||
Land | 8,699 | 8,672 | ||||||
Mining equipment | 1,452 | 1,206 | ||||||
Construction-in-progress | 6,292 | 3,894 | ||||||
Subtotal | $ | 22,024 | $ | 18,443 | ||||
Less: accumulated depreciation | (3,939 | ) | (3,300 | ) | ||||
Total | $ | 18,085 | $ | 15,143 | ||||
STOCK_BASED_COMPENSATION_Table
STOCK BASED COMPENSATION (Tables) | 9 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
STOCK BASED COMPENSATION | ' | |||||||||
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 | ' | |||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||
2014 | 2013 | 2014 | 2013 | |||||||
Risk-free interest rate | 1.01% | 0.5% to 0.86% | 1.01% | 0.50% | ||||||
Dividend yield | n/a | n/a | n/a | n/a | ||||||
Volatility factor of the expected market price of common stock | 70% | 66% to 69% | 70% | 66% | ||||||
Weighted-average expected life of option | 3.5 years | 3.5 years | 3.5 years | 3.5 years | ||||||
Weighted-average grant date fair value | $1.45 | $1.02 | $1.45 | $1.01 | ||||||
NET_LOSS_INCOME_PER_SHARE_Tabl
NET (LOSS) INCOME PER SHARE (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
NET (LOSS) INCOME 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 September 30, | Nine months ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(in thousands, except per share) | ||||||||||||||
Net (loss) income | $ | (13,033 | ) | $ | 3,264 | $ | (99,168 | ) | $ | (136,399 | ) | |||
Weighted average common shares (thousands): | ||||||||||||||
Basic | 297,164 | 297,125 | 297,162 | 297,001 | ||||||||||
Effect of employee stock-based awards | — | 774 | — | — | ||||||||||
Diluted | 297,164 | 297,899 | 297,162 | 297,001 | ||||||||||
Net (loss) income per share: | ||||||||||||||
Basic | $ | (0.04 | ) | $ | 0.01 | $ | (0.33 | ) | $ | (0.46 | ) | |||
Diluted | $ | (0.04 | ) | $ | 0.01 | $ | (0.33 | ) | $ | (0.46 | ) | |||
SEGMENTED_INFORMATION_Tables
SEGMENTED INFORMATION (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
SEGMENTED INFORMATION | ' | ||||||||||||||||
Schedule of the financial information relating to the Company's segments | ' | ||||||||||||||||
Corporate | |||||||||||||||||
Argentina | Mexico | U.S. | & Other | Total | |||||||||||||
(in thousands) | |||||||||||||||||
For the three months ended September 30, 2014 | |||||||||||||||||
Gold and silver sales | $ | — | $ | 8,853 | $ | — | $ | — | $ | 8,853 | |||||||
Production costs applicable to sales | — | (10,997 | ) | — | — | (10,997 | ) | ||||||||||
Mine construction costs | — | (567 | ) | — | — | (567 | ) | ||||||||||
Mine development costs | — | (31 | ) | — | — | (31 | ) | ||||||||||
Exploration costs | (190 | ) | (1,201 | ) | (851 | ) | (64 | ) | (2,306 | ) | |||||||
General and administrative expenses | (210 | ) | (910 | ) | (50 | ) | (1,379 | ) | (2,549 | ) | |||||||
Impairment of mineral property interests and property and equipment | — | — | — | — | — | ||||||||||||
Loss on investment in Minera Santa Cruz S.A. (net of amortization) | (4,441 | ) | — | — | — | (4,441 | ) | ||||||||||
Operating loss | (4,915 | ) | (5,936 | ) | (2,392 | ) | (1,506 | ) | (14,749 | ) | |||||||
For the nine months ended September 30, 2014 | |||||||||||||||||
Gold and silver sales | $ | — | $ | 31,620 | $ | — | $ | — | $ | 31,620 | |||||||
Production costs applicable to sales | — | (30,424 | ) | — | — | (30,424 | ) | ||||||||||
Mine construction costs | — | (1,723 | ) | — | — | (1,723 | ) | ||||||||||
Mine development costs | — | (1,754 | ) | — | — | (1,754 | ) | ||||||||||
Exploration costs | (940 | ) | (4,077 | ) | (2,368 | ) | (238 | ) | (7,623 | ) | |||||||
General and administrative expenses | (563 | ) | (2,418 | ) | (163 | ) | (5,845 | ) | (8,989 | ) | |||||||
Impairment of mineral property interests and property and equipment | (120,398 | ) | — | — | — | (120,398 | ) | ||||||||||
Income on investment in Minera Santa Cruz S.A. (net of amortization) | 150 | — | — | — | 150 | ||||||||||||
Operating loss | (122,474 | ) | (11,134 | ) | (4,846 | ) | (6,231 | ) | (144,685 | ) | |||||||
As at September 30, 2014 | |||||||||||||||||
Investment in Minera Santa Cruz S.A. | 203,614 | — | — | — | 203,614 | ||||||||||||
Mineral property interests | 337,806 | 11,018 | 172,702 | — | 521,526 | ||||||||||||
Total assets | 544,628 | 58,865 | 173,259 | 6,708 | 783,460 | ||||||||||||
Corporate | |||||||||||||||||
Argentina | Mexico | U.S. | & Other | Total | |||||||||||||
(in thousands) | |||||||||||||||||
For the three months ended September 30, 2013 | |||||||||||||||||
Gold and silver sales | $ | — | $ | 11,778 | $ | — | $ | — | $ | 11,778 | |||||||
Production costs applicable to sales | — | (7,907 | ) | — | — | (7,907 | ) | ||||||||||
Mine construction costs | — | (662 | ) | — | — | (662 | ) | ||||||||||
Mine development costs | — | (85 | ) | — | — | (85 | ) | ||||||||||
Exploration costs | (631 | ) | (1,148 | ) | (634 | ) | (162 | ) | (2,575 | ) | |||||||
Income on investment in Minera Santa Cruz S.A. (net of amortization) | 2,040 | — | — | — | 2,040 | ||||||||||||
Impairment of mineral property interests and property and equipment | — | — | (6,287 | ) | — | (6,287 | ) | ||||||||||
Gain on sale of assets | 10 | — | 40 | — | 50 | ||||||||||||
Operating income (loss) | 1,131 | 393 | (8,499 | ) | (1,870 | ) | (8,845 | ) | |||||||||
For the nine months ended September 30, 2013 | |||||||||||||||||
Gold and silver sales | $ | — | $ | 35,735 | $ | — | $ | — | $ | 35,735 | |||||||
Production costs applicable to sales | — | (26,778 | ) | — | — | (26,778 | ) | ||||||||||
Mine construction costs | — | (662 | ) | — | — | (662 | ) | ||||||||||
Mine development costs | — | (654 | ) | — | — | (654 | ) | ||||||||||
Exploration costs | (14,110 | ) | (5,582 | ) | (2,086 | ) | (288 | ) | (22,066 | ) | |||||||
Income on investment in Minera Santa Cruz S.A. (net of amortization) | 252 | — | — | — | 252 | ||||||||||||
Impairment of investment in MSC | (95,878 | ) | — | — | — | (95,878 | ) | ||||||||||
Impairment of mineral property interests and property and equipment | (27,729 | ) | — | (6,287 | ) | — | (34,016 | ) | |||||||||
Gain (loss) on sale of assets | (316 | ) | — | (6,428 | ) | 3 | (6,741 | ) | |||||||||
Operating loss | (139,297 | ) | (2,627 | ) | (17,102 | ) | (7,840 | ) | (166,866 | ) | |||||||
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) | 9 Months Ended | |||||||||||||
Sep. 30, 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 September 30, 2014 | ||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||
(in thousands) | ||||||||||||||
Liabilities: | ||||||||||||||
Portion of accounts payable and accrued liabilities recorded at fair value | $ | 105 | $ | — | $ | 105 | $ | — | ||||||
$ | 105 | $ | — | $ | 105 | $ | — | |||||||
Fair Value as at December 31, 2013 | ||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||
(in thousands) | ||||||||||||||
Liabilities: | ||||||||||||||
Portion of accounts payable and accrued liabilities recorded at fair value | 177 | — | 177 | — | ||||||||||
$ | 177 | $ | — | $ | 177 | $ | — | |||||||
NATURE_OF_OPERATIONS_AND_SUMMA1
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (MSC) | Sep. 30, 2014 | Sep. 30, 2013 |
MSC | ' | ' |
THE COMPANY | ' | ' |
Ownership interest (as a percent) | 49.00% | 49.00% |
INVENTORIES_Details
INVENTORIES (Details) (USD $) | 3 Months Ended | |
Sep. 30, 2014 | Dec. 31, 2013 | |
Ore on leach pads | $1,730,000 | $2,749,000 |
In-process inventory | 4,417,000 | 2,681,000 |
Stockpiles | 382,000 | 778,000 |
Precious metals | 1,467,000 | 1,300,000 |
Materials and supplies | 1,206,000 | 1,292,000 |
Inventories | 9,202,000 | 8,800,000 |
Inventory write-down | 1,700,000 | ' |
Ore on leach pads | ' | ' |
Inventory write-down | 600,000 | ' |
In-process inventory | ' | ' |
Inventory write-down | 900,000 | ' |
Precious metals | ' | ' |
Inventory write-down | $200,000 | ' |
MINERAL_PROPERTY_INTERSTS_AND_
MINERAL PROPERTY INTERSTS AND ASSET RETIREMENT OBLIGATIONS (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | |
Argentina | Argentina | Tonkin property and El Gallo 1 mine portion of the El Gallo Complex | Tonkin Complex | El Gallo mine | El Gallo mine | Telken Tenements | Este Tenements | Piramides Tenements | Tobias Tenements | West Battle Mountain Complex | West Battle Mountain Complex | Exploration properties in Santa Cruz, Argentina | Exploration properties in Santa Cruz, Argentina | Exploration properties located in Santa Cruz, Nevada | Exploration properties located in Santa Cruz, Nevada | Los Azules Copper Project | Los Azules Copper Project | Los Azules Copper Project | ||||||
item | Argentina | Argentina | Argentina | Argentina | Nevada | Nevada | Nevada | Nevada | Argentina | |||||||||||||||
Mineral Property Interests [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of most significant properties subject to reclamation obligations | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Undiscounted estimated reclamation costs | ' | ' | ' | ' | ' | ' | ' | ' | $2,700,000 | $4,600,000 | $4,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash bonding for mineral properties in the United States | 2,000 | ' | 2,000 | ' | 5,183,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reduction in cash bonding requirements | ' | ' | -5,181,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of annual fees on surety bonds | ' | ' | 1.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of upfront deposit on surety bonds | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of mineral property interests and asset retirement obligations | ' | ' | 923,000 | 1,244,000 | ' | ' | ' | ' | ' | 300,000 | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of capitalized asset retirement costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | 400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment charges | ' | 6,287,000 | 120,398,000 | 34,016,000 | ' | 120,398,000 | 27,729,000 | ' | ' | ' | ' | 13,792,000 | 2,784,000 | 5,079,000 | 6,074,000 | 6,287,000 | 6,287,000 | 6,300,000 | 6,300,000 | 27,700,000 | 27,700,000 | 120,400,000 | ' | 120,398,000 |
Recovery of deferred income tax | 22,500,000 | 2,200,000 | 22,500,000 | 7,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,200,000 | 2,200,000 | 2,300,000 | 2,300,000 | ' | 22,500,000 | ' |
Changes in the asset retirement obligations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Asset retirement obligation liability, beginning balance | ' | ' | 7,247,000 | 6,359,000 | 6,359,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Settlements | ' | ' | -43,000 | ' | -60,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accretion of liability | 100,000 | 113,000 | 309,000 | 347,000 | 461,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Adjustment reflecting updated estimates | ' | ' | -79,000 | ' | 487,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Asset retirement obligation liability, ending balance | 7,434,000 | ' | 7,434,000 | ' | 7,247,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current portion of the asset retirement obligation | $1,458,000 | ' | $1,458,000 | ' | $1,392,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
INVESTMENT_IN_MINERA_SANTA_CRU2
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | ||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
MSC | MSC | MSC | MSC | MSC | MSC | MSC | MSC | |||||
Exploration properties in Santa Cruz, Argentina | ||||||||||||
Vend-in agreement | ||||||||||||
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership interest (as a percent) | ' | ' | ' | ' | 49.00% | 49.00% | ' | ' | 49.00% | 49.00% | ' | ' |
Income (loss) on investment in Minera Santa Cruz S.A. (net of amortization) | ($4,441,000) | $2,040,000 | $150,000 | $252,000 | ($4,441,000) | $2,040,000 | ' | ' | $150,000 | $252,000 | ' | ' |
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 | ' | ' |
Impairment of investment in MSC | ' | ' | ' | 95,878,000 | ' | ' | 95,900,000 | ' | ' | 95,900,000 | 95,878,000 | ' |
Carrying value of properties, net of tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35,857,000 | 35,900,000 |
Deferred tax liability related to mineral properties transferred | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17,300,000 |
(Gain) loss on sale of assets | -8,000 | -50,000 | -26,000 | 6,741,000 | ' | ' | ' | ' | ' | ' | ' | 0 |
Dividends received | ' | ' | $9,483,000 | $1,242,000 | $2,400,000 | $1,200,000 | ' | ' | $9,500,000 | $1,200,000 | ' | ' |
INVESTMENT_IN_MINERA_SANTA_CRU3
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Change in the investment in MSC | ' | ' | ' | ' | ' | ' |
Investment in MSC, beginning balance | ' | ' | ' | $212,947 | ' | ' |
Income tax recovery | -8,714 | -12,157 | ' | -52,705 | -31,025 | ' |
Impairment of investment in MSC | ' | ' | ' | ' | -95,878 | ' |
Investment in MSC, ending balance | 203,614 | ' | ' | 203,614 | ' | ' |
MSC | ' | ' | ' | ' | ' | ' |
Change in the investment in MSC | ' | ' | ' | ' | ' | ' |
Investment in MSC, beginning balance | ' | ' | ' | 212,947 | 273,948 | 273,948 |
Attributable net Income from equity investment | -2,689 | 2,658 | ' | 149 | 3,914 | 2,126 |
Amortization of fair value increments | -3,522 | -3,579 | ' | -9,652 | -15,582 | -18,425 |
Income tax recovery | 1,770 | 2,961 | ' | 9,653 | 11,920 | 17,145 |
Dividend distribution | ' | ' | ' | -9,483 | ' | -1,826 |
Impairment of investment in MSC | ' | ' | -95,900 | ' | -95,900 | -95,878 |
Contribution of Santa Cruz exploration properties, net of tax | ' | ' | ' | ' | ' | 35,857 |
Investment in MSC, ending balance | $203,614 | ' | ' | $203,614 | ' | $212,947 |
INVESTMENT_IN_MINERA_SANTA_CRU4
INVESTMENT IN MINERA SANTA CRUZ S.A. (''MSC'') - SAN JOSE MINE (Details 3) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE | ' | ' | ' | ' | ' |
Income tax recovery | ($8,714) | ($12,157) | ($52,705) | ($31,025) | ' |
Income (loss) on investment in Minera Santa Cruz S.A. (net of amortization) | -4,441 | 2,040 | 150 | 252 | ' |
MSC | ' | ' | ' | ' | ' |
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE | ' | ' | ' | ' | ' |
Net sales percentage | 100.00% | 100.00% | 100.00% | 100.00% | ' |
Net sales | 38,263 | 69,663 | 148,386 | 182,031 | ' |
Production costs applicable to sales | -36,136 | -44,964 | -117,620 | -139,373 | ' |
(Loss) income from operations before extraordinary items | -5,488 | 5,424 | 304 | 7,988 | ' |
Net (loss) income | -5,488 | 5,424 | 304 | 7,988 | ' |
Ownership interest (as a percent) | 49.00% | 49.00% | 49.00% | 49.00% | ' |
Net (loss) income | -2,689 | 2,658 | 149 | 3,914 | 2,126 |
Amortization of fair value increments | -3,522 | -3,579 | -9,652 | -15,582 | -18,425 |
Income tax recovery | 1,770 | 2,961 | 9,653 | 11,920 | 17,145 |
Income (loss) on investment in Minera Santa Cruz S.A. (net of amortization) | ($4,441) | $2,040 | $150 | $252 | ' |
INVESTMENT_IN_MINERA_SANTA_CRU5
INVESTMENT IN MINERA SANTA CRUZ S.A. (''MSC'') - SAN JOSE MINE (Details 4) (USD $) | 9 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Jun. 30, 2014 |
MSC | MSC | MSC | MSC | MSC | ||||
Current Period Values Excluding Fair Value Increments And Impairment Charge | ||||||||
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE | ' | ' | ' | ' | ' | ' | ' | ' |
Current assets | ' | $39,702 | $46,771 | ' | ' | ' | $98,300 | $101,200 |
Total assets | ' | 783,460 | 923,066 | ' | ' | ' | 518,500 | 308,900 |
Current liabilities | ' | 19,768 | 11,189 | ' | ' | ' | 56,900 | 56,900 |
Total liabilities | ' | 132,622 | 176,299 | ' | ' | ' | 141,600 | 94,500 |
Impairment of investment in MSC | $95,878 | ' | ' | $95,900 | $95,900 | $95,878 | ' | ' |
PROPERTY_AND_EQUIPMENT_Details
PROPERTY AND EQUIPMENT (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
PROPERTY AND EQUIPMENT | ' | ' | ' | ' | ' |
Subtotal | $22,024 | ' | $22,024 | ' | $18,443 |
Less: accumulated depreciation | -3,939 | ' | -3,939 | ' | -3,300 |
Total | 18,085 | ' | 18,085 | ' | 15,143 |
Depreciation expense | 239 | 204 | 693 | 731 | ' |
Trucks and trailers | ' | ' | ' | ' | ' |
PROPERTY AND EQUIPMENT | ' | ' | ' | ' | ' |
Subtotal | 1,012 | ' | 1,012 | ' | 1,041 |
Office furniture and equipment | ' | ' | ' | ' | ' |
PROPERTY AND EQUIPMENT | ' | ' | ' | ' | ' |
Subtotal | 2,057 | ' | 2,057 | ' | 1,163 |
Drill rigs | ' | ' | ' | ' | ' |
PROPERTY AND EQUIPMENT | ' | ' | ' | ' | ' |
Subtotal | 998 | ' | 998 | ' | 998 |
Building | ' | ' | ' | ' | ' |
PROPERTY AND EQUIPMENT | ' | ' | ' | ' | ' |
Subtotal | 1,514 | ' | 1,514 | ' | 1,469 |
Land | ' | ' | ' | ' | ' |
PROPERTY AND EQUIPMENT | ' | ' | ' | ' | ' |
Subtotal | 8,699 | ' | 8,699 | ' | 8,672 |
Mining equipment | ' | ' | ' | ' | ' |
PROPERTY AND EQUIPMENT | ' | ' | ' | ' | ' |
Subtotal | 1,452 | ' | 1,452 | ' | 1,206 |
Construction in process | ' | ' | ' | ' | ' |
PROPERTY AND EQUIPMENT | ' | ' | ' | ' | ' |
Subtotal | $6,292 | ' | $6,292 | ' | $3,894 |
SHAREHOLDERS_EQUITY_Details
SHAREHOLDERS' EQUITY (Details) (USD $) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
item | item | ||
SHAREHOLDERS' EQUITY | ' | ' | ' |
Exchangeable shares converted into common stock | 2,600,000 | ' | ' |
Outstanding Exchangeable Shares not exchanged | 29,600,000 | ' | ' |
Shares of common stock issued upon exercise of stock options | 697,300 | ' | ' |
Weighted average exercise price of stock options (in dollars per share) | $1.98 | ' | ' |
Proceeds from Stock Options Exercised | $1,382,000 | $171,000 | ' |
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 | 446,950 | ' | ' |
Number of shares issued to settle part of account payables (in shares) | 393,190 | ' | ' |
Number of shares remaining under agreement | 53,760 | ' | ' |
Litigation settlement liabilities | $100,000 | ' | ' |
STOCKBASED_COMPENSATION_Detail
STOCK-BASED COMPENSATION (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
STOCK BASED COMPENSATION | ' | ' | ' | ' |
Stock option expense | $0.20 | $0.30 | $0.90 | $1 |
Principal assumptions used in applying the Black-Scholes option pricing model for the awards | ' | ' | ' | ' |
Risk-free interest rate (as a percent) | 1.01% | ' | 1.01% | 0.50% |
Volatility factor of the expected market price of common stock (as a percent) | 70.00% | ' | 70.00% | 66.00% |
Weighted-average expected life of option | '3 years 6 months | '3 years 6 months | '3 years 6 months | '3 years 6 months |
Weighted-average grant date fair value (in dollars per share) | $1.45 | $1.02 | $1.45 | $1.01 |
Minimum | ' | ' | ' | ' |
Principal assumptions used in applying the Black-Scholes option pricing model for the awards | ' | ' | ' | ' |
Risk-free interest rate (as a percent) | ' | 0.50% | ' | ' |
Volatility factor of the expected market price of common stock (as a percent) | ' | 66.00% | ' | ' |
Maximum | ' | ' | ' | ' |
Principal assumptions used in applying the Black-Scholes option pricing model for the awards | ' | ' | ' | ' |
Risk-free interest rate (as a percent) | ' | 0.86% | ' | ' |
Volatility factor of the expected market price of common stock (as a percent) | ' | 69.00% | ' | ' |
Certain employees and directors | ' | ' | ' | ' |
STOCK BASED COMPENSATION | ' | ' | ' | ' |
Stock options granted (in shares) | ' | 1.7 | 1.7 | 1.7 |
Exercise price of options granted (in dollars per share) | ' | $2.25 | $2.90 | $2.25 |
Vesting period of options | ' | ' | '3 years | ' |
Exercisable period of options | ' | ' | '5 years | ' |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 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 | $2.30 | $9.90 | $23.70 | $23.60 |
Deferred Income Tax on Impairment of Mineral Properties | 22.5 | 2.2 | 22.5 | 7 |
Decrease in deferred tax liabilities | $5.80 | ' | $5.80 | ' |
NET_LOSS_INCOME_PER_SHARE_Deta
NET (LOSS) INCOME PER SHARE (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
NET (LOSS) INCOME PER SHARE | ' | ' | ' | ' |
Net (loss) income | ($13,033) | $3,264 | ($99,168) | ($136,399) |
Weighted average common shares (thousands): | ' | ' | ' | ' |
Basic (in shares) | 297,164,000 | 297,125,000 | 297,162,000 | 297,001,000 |
Effect of employee stock-based awards (in shares) | ' | 774,000 | ' | ' |
Diluted (in shares) | 297,164,000 | 297,899,000 | 297,162,000 | 297,001,000 |
Net income (loss) per share: | ' | ' | ' | ' |
Basic (in dollars per share) | ($0.04) | $0.01 | ($0.33) | ($0.46) |
Diluted (in dollars per share) | ($0.04) | $0.01 | ($0.33) | ($0.46) |
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) | 3,200,000 | 2,100,000 | 3,200,000 | 2,000,000 |
Average exercise price of options outstanding (in dollars per share) | $4.28 | $5.01 | $4.28 | $5.16 |
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) | 3,200,000 | ' | 3,200,000 | 3,600,000 |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details) (Entity Affiliated With Related Party, Chairman and Chief Executive Officer, USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Entity Affiliated With Related Party | Chairman and Chief Executive Officer | ' | ' | ' | ' |
RELATED PARTY TRANSACTIONS | ' | ' | ' | ' |
Amount of expenses incurred and paid | $25,237 | $9,100 | $63,755 | $79,625 |
SEGMENTED_INFORMATION_Details
SEGMENTED INFORMATION (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Operating Segment Reporting | ' | ' | ' | ' | ' |
Gold and silver sales | $8,853 | $11,778 | $31,620 | $35,735 | ' |
Production costs applicable to sales | -10,997 | -7,907 | -30,424 | -26,778 | ' |
Mine construction costs | -567 | -662 | -1,723 | -662 | ' |
Mine development costs | -31 | -85 | -1,754 | -654 | ' |
Exploration costs | -2,306 | -2,575 | -7,623 | -22,064 | ' |
General and administrative expenses | -2,549 | -2,496 | -8,989 | -10,905 | ' |
Impairment of mineral property interests and property and equipment | ' | -6,287 | -120,398 | -34,016 | ' |
Income (loss) on investment in Minera Santa Cruz S.A. (net of amortization) | -4,441 | 2,040 | 150 | 252 | ' |
Impairment of investment in MSC | ' | ' | ' | -95,878 | ' |
Gain on sale of assets | 8 | 50 | 26 | -6,741 | ' |
Operating loss | -14,749 | -8,845 | -144,685 | -166,866 | ' |
Investment in Minera Santa Cruz S.A. | 203,614 | ' | 203,614 | ' | 212,947 |
Carrying value of mineral property interest | 521,526 | ' | 521,526 | ' | 642,968 |
Total assets | 783,460 | ' | 783,460 | ' | 923,066 |
Argentina | ' | ' | ' | ' | ' |
Operating Segment Reporting | ' | ' | ' | ' | ' |
Exploration costs | -190 | -631 | -940 | -14,110 | ' |
General and administrative expenses | -210 | ' | -563 | ' | ' |
Impairment of mineral property interests and property and equipment | ' | ' | -120,398 | -27,729 | ' |
Income (loss) on investment in Minera Santa Cruz S.A. (net of amortization) | -4,441 | 2,040 | 150 | 252 | ' |
Impairment of investment in MSC | ' | ' | ' | -95,878 | ' |
Gain on sale of assets | ' | 10 | ' | -316 | ' |
Operating loss | -4,915 | 1,131 | -122,474 | -139,297 | ' |
Investment in Minera Santa Cruz S.A. | 203,614 | ' | 203,614 | ' | 212,947 |
Carrying value of mineral property interest | 337,806 | ' | 337,806 | ' | 458,203 |
Total assets | 544,628 | ' | 544,628 | ' | 674,269 |
Mexico | ' | ' | ' | ' | ' |
Operating Segment Reporting | ' | ' | ' | ' | ' |
Gold and silver sales | 8,853 | 11,778 | 31,620 | 35,735 | ' |
Production costs applicable to sales | -10,997 | -7,907 | -30,424 | -26,778 | ' |
Mine construction costs | -567 | -662 | -1,723 | -662 | ' |
Mine development costs | -31 | -85 | -1,754 | -654 | ' |
Exploration costs | -1,201 | -1,148 | -4,077 | -5,582 | ' |
General and administrative expenses | -910 | ' | -2,418 | ' | ' |
Operating loss | -5,936 | 393 | -11,134 | -2,627 | ' |
Carrying value of mineral property interest | 11,018 | ' | 11,018 | ' | 11,984 |
Total assets | 58,865 | ' | 58,865 | ' | 54,131 |
United States | ' | ' | ' | ' | ' |
Operating Segment Reporting | ' | ' | ' | ' | ' |
Exploration costs | -851 | -634 | -2,368 | -2,086 | ' |
General and administrative expenses | -50 | ' | -163 | ' | ' |
Impairment of mineral property interests and property and equipment | ' | -6,287 | ' | -6,287 | ' |
Gain on sale of assets | ' | 40 | ' | -6,428 | ' |
Operating loss | -2,392 | -8,499 | -4,846 | -17,102 | ' |
Carrying value of mineral property interest | 172,702 | ' | 172,702 | ' | 172,781 |
Total assets | 173,259 | ' | 173,259 | ' | 177,248 |
Corporate & Other | ' | ' | ' | ' | ' |
Operating Segment Reporting | ' | ' | ' | ' | ' |
Exploration costs | -64 | -162 | -238 | -288 | ' |
General and administrative expenses | -1,379 | ' | -5,845 | ' | ' |
Gain on sale of assets | ' | ' | ' | 3 | ' |
Operating loss | -1,506 | -1,870 | -6,231 | -7,840 | ' |
Total assets | $6,708 | ' | $6,708 | ' | $17,418 |
FAIR_VALUE_ACCOUNTING_Details
FAIR VALUE ACCOUNTING (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | ||||||||
Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | |
item | item | Los Azules Copper Project | MSC | MSC | MSC | Recurring | Recurring | Recurring | Recurring | |||
Total | Total | Fair Value, Inputs, Level 2 | Fair Value, Inputs, Level 2 | |||||||||
Liabilities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts payable and accrued liabilities | ' | ' | ' | ' | ' | ' | ' | ' | $105,000 | $177,000 | $105,000 | $177,000 |
Liabilities | ' | ' | ' | ' | ' | ' | ' | ' | 105,000 | 177,000 | 105,000 | 177,000 |
Litigation settlement liabilities | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares remaining under agreement | ' | 53,760 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of vendors to which shares of common stock are required to be issued as a part of settlement | ' | 1 | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' |
Investment in MSC | ' | 203,614,000 | ' | 212,947,000 | ' | 203,614,000 | 212,947,000 | 273,948,000 | ' | ' | ' | ' |
Total Loss | $6,287,000 | $120,398,000 | $34,016,000 | ' | $120,400,000 | ' | ' | ' | ' | ' | ' | ' |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' | ' |
Cash bonding for mineral properties in the United States | $2,000 | $5,183,000 |
Percentage of annual fees on surety bonds | 1.50% | ' |
Percentage of upfront deposit on surety bonds | 10.00% | ' |
Surety bonds upfront deposit amount | $500,000 | ' |
SUBSEQUENT_EVENT_Details
SUBSEQUENT EVENT (Details) | 1 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2014 | Oct. 31, 2014 |
TNR Gold Corp | Visible Gold Mines Inc [Member] | Visible Gold Mines Inc [Member] | |
Subsequent Event | USD ($) | CAD | |
Subsequent Event [Line Items] | ' | ' | ' |
Percentage of equity acquired | 25.00% | 10.40% | 10.40% |
Percentage of royalty payment to be received | 0.40% | ' | ' |
Number of shares issued in the transaction | 850,000 | ' | ' |
Period of time within the closing of the transaction to receive a bonus payment | '36 months | ' | ' |
Percentage of bonus payment on gross proceeds | 1.00% | ' | ' |
Common shares, subscribed | ' | 8,333,333 | 8,333,333 |
Common shares, purchase price per unit | ' | ' | 0.06 |
Common shares, aggregate amount | ' | $0.40 | 0.5 |
Number of common shares per each unit purchased | ' | 1 | 1 |
Number of warrants per each units purchased | ' | 1 | 1 |
Additional unit of common shares purchased | ' | 1 | 1 |
Purchased price per unit of additional common shares purchased | ' | $0.10 | ' |
Equity Method Investment, Ownership Percentage | 25.00% | 10.40% | 10.40% |
Ownership percentage on partially diluted basis | ' | 18.90% | 18.90% |