Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 7-May-15 | |
Document and Entity Information | ||
Entity Registrant Name | McEwen Mining Inc. | |
Entity Central Index Key | 314203 | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -19 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 273,225,345 | |
Exchangeable Common Stock, Shares Outstanding | 27,304,829 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
REVENUE: | ||
Gold and silver sales | $22,882 | $11,130 |
Total Revenue | 22,882 | 11,130 |
COSTS AND EXPENSES: | ||
Production costs applicable to sales | 10,454 | 8,527 |
Mine construction costs | 939 | |
Mine development costs | 174 | 1,568 |
Exploration costs | 2,342 | 2,680 |
Property holding costs | 1,492 | 1,454 |
General and administrative | 3,208 | 3,227 |
Depreciation | 272 | 225 |
Accretion of asset retirement obligation (note 4) | 101 | 101 |
Income from investment in Minera Santa Cruz S.A., net of amortization (note 5) | -329 | -7,029 |
Total costs and expenses | 17,714 | 11,692 |
Operating income (loss) | 5,168 | -562 |
OTHER INCOME (EXPENSE): | ||
Net interest (expense) income | -98 | 75 |
Foreign currency loss | -212 | -583 |
Total other expense | -310 | -508 |
Income (loss) before income taxes | 4,858 | -1,070 |
Recovery of income taxes (note 8) | 1,163 | 18,957 |
Net income | 6,021 | 17,887 |
OTHER COMPREHENSIVE INCOME: | ||
Unrealized (loss) gain on available-for-sale securities, net of taxes | -165 | 1 |
Comprehensive income (loss) | $5,856 | $17,888 |
Net income (loss) per share (note 9): | ||
Basic (in dollars per share) | $0.02 | $0.06 |
Diluted (in dollars per share) | $0.02 | $0.06 |
Weighted average common shares outstanding (thousands) (note 9): | ||
Basic (in shares) | 297,255 | 297,159 |
Diluted (in shares) | 297,266 | 298,410 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $16,569 | $12,380 |
Investments (note 2) | 1,945 | 1,082 |
IVA taxes receivable | 10,405 | 11,739 |
Inventories (note 3) | 12,931 | 12,404 |
Other current assets | 1,697 | 2,096 |
Total current assets | 43,547 | 39,701 |
Mineral property interests | 287,490 | 287,812 |
Investment in Minera Santa Cruz S.A. (note 5) | 177,347 | 177,018 |
Property and equipment, net (note 6) | 17,816 | 17,896 |
Other assets | 533 | 531 |
TOTAL ASSETS | 526,733 | 522,958 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 19,875 | 21,654 |
Current portion of asset retirement obligation (note 4) | 2,456 | 2,427 |
Total current liabilities | 22,331 | 24,081 |
Asset retirement obligation, less current portion (note 4) | 5,116 | 5,044 |
Deferred income tax liability | 50,652 | 51,899 |
Deferred lease inducement | 311 | 319 |
Other liabilities | 400 | 400 |
Total liabilities | 78,810 | 81,743 |
Shareholders' equity: | ||
Common stock, no par value, 500,000 shares authorized; Common: 272,956 as of March 31, 2015 and 271,579 shares as of December 31, 2014 issued and outstanding Exchangeable: 27,574 shares as of March 31, 2015 and 28,521 shares as of December 31, 2014 issued and outstanding (note 6) | 1,361,520 | 1,360,668 |
Accumulated deficit | -913,556 | -919,577 |
Accumulated other comprehensive income (loss) income | -41 | 124 |
Total shareholders' equity | 447,923 | 441,215 |
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY | 526,733 | 522,958 |
Commitments and Contingencies (note 13) |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
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 | 272,956 | 271,579 |
Common, shares outstanding | 272,956 | 271,579 |
Exchangeable, shares issued | 27,574 | 28,521 |
Exchangeable, shares outstanding | 27,574 | 28,521 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (USD $) | Common Stock | Accumulated Other Comprehensive (Loss) Income | Accumulated Deficit | Total |
In Thousands, except Share data, unless otherwise specified | ||||
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 | 380 | 380 | ||
Unrealized (loss) gain on available-for-sale securities, net of taxes | 1 | 1 | ||
Net income | 17,887 | 17,887 | ||
Balance at Mar. 31, 2014 | 1,355,076 | -294 | -589,747 | 765,035 |
Balance (in shares) at Mar. 31, 2014 | 297,159,000 | |||
Balance at Dec. 31, 2014 | 1,360,668 | 124 | -919,577 | 441,215 |
Balance (in shares) at Dec. 31, 2014 | 300,100,000 | |||
Increase (Decrease) in Shareholders' Equity | ||||
Shares issued for settlement of accounts payable | 443 | 443 | ||
Shares issued for settlement of accounts payable (in shares) | 430,295 | |||
Stock-based compensation | 409 | 409 | ||
Unrealized (loss) gain on available-for-sale securities, net of taxes | -165 | -165 | ||
Net income | 6,021 | 6,021 | ||
Balance at Mar. 31, 2015 | $1,361,520 | ($41) | ($913,556) | $447,923 |
Balance (in shares) at Mar. 31, 2015 | 300,530,000 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities: | ||
Cash paid to suppliers and employees | ($16,468) | ($18,627) |
Cash received from gold and silver sales | 21,985 | 10,723 |
Dividends received from Minera Santa Cruz S.A. | 3,945 | |
Interest received | 98 | 75 |
Cash provided by (used in) operating activities | 5,615 | -3,884 |
Cash flows from investing activities: | ||
Investment in available-for-sale securities | -1,114 | |
Additions to property and equipment | -192 | -371 |
Cash used in investing activities | -1,306 | -371 |
Effect of exchange rate change on cash and cash equivalents | -120 | -595 |
Increase (decrease) in cash and cash equivalents | 4,189 | -4,850 |
Cash and cash equivalents, beginning of period | 12,380 | 24,321 |
Cash and cash equivalents, end of period | 16,569 | 19,471 |
Reconciliation of net income to cash used in operating activities: | ||
Net income | 6,021 | 17,887 |
Adjustments to reconcile net income from operating activities: | ||
Income from investment in Minera Santa Cruz S.A. net of amortization | -329 | -7,029 |
Recovery of income taxes | -1,163 | -18,957 |
Stock-based compensation | 409 | 380 |
Depreciation | 272 | 225 |
Accretion of asset retirement obligation | 101 | 101 |
Amortization of mineral property interests and asset retirement obligations | 322 | 322 |
Foreign exchange loss | 120 | 595 |
Change in non-cash working capital items: | ||
Decrease (increase) in IVA taxes receivable, including collection of $2,746 (2014 - $nil) | 1,334 | -1,490 |
Increase in other assets related to operations | -129 | -367 |
(Decrease) increase in liabilities related to operations | -1,343 | 504 |
Dividend received from Minera Santa Cruz S.A | 3,945 | |
Cash provided by (used in) operating activities | $5,615 | ($3,884) |
CONSOLIDATED_STATEMENTS_OF_CAS1
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
CONSOLIDATED STATEMENTS OF CASH FLOWS | |
Collection of VAT taxes receivable | $2,746 |
NATURE_OF_OPERATIONS_AND_SUMMA
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2015 | |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
NOTE 1 NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Nature of Operations and Basis of Presentation | |
McEwen Mining Inc. (the “Company” or “McEwen Mining”) was organized under the laws of the State of Colorado on July 24, 1979. Since inception, the Company has been engaged in the exploration for, development of, production and sale of gold and silver. | |
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 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 for the three months ended March 31, 2015 and 2014, the Consolidated Balance Sheets as at March 31, 2015 (unaudited) and December 31, 2014, the unaudited Consolidated Statement of Changes in Shareholders’ Equity for the three months ended March 31, 2015 and 2014, and the unaudited Consolidated Statements of Cash Flows for the three months ended March 31, 2015 and 2014, 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, 2014. 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, 2014. 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 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 for the Company’s fiscal year beginning January 1, 2015. The new guidance did not have an impact on the Company’s consolidated financial statements. | |
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 shall be effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016, with early application permitted. The Company is evaluating the effect that the updated standard will have on its consolidated financial statements. | |
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 fiscal year beginning after December 15, 2016, including interim reporting periods within that year. The Company is evaluating the effect that the updated standard will have on its consolidated financial statements. | |
INVESTMENTS
INVESTMENTS | 3 Months Ended |
Mar. 31, 2015 | |
INVESTMENTS | |
INVESTMENTS | |
NOTE 2 INVESTMENTS | |
During the quarter ended March 31, 2015, the Company invested $1.2 million of its cash in marketable equity securities. Total cost of these marketable equity securities was $1.6 million (December 31, 2014 - $0.4 million). These securities are classified as available-for-sale securities and are valued at fair value. Any resulting gain or loss is recorded to an unrealized income and loss account (accumulated other comprehensive income (loss)) that is reported as a separate line item in the shareholders’ equity section of the balance sheet. The gains and losses for available-for-sale securities are not reported on the statement of operations until the securities are sold or if there is an other than temporary decline in fair value below cost. As at March 31, 2015, the fair value of these securities was $1.9 million, and as a result the Company recorded a loss, net of tax, of $0.2 million to other comprehensive income. | |
INVENTORIES
INVENTORIES | 1 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
INVENTORIES | ||||||||
INVENTORIES | ||||||||
NOTE 3 INVENTORIES | ||||||||
Inventories at March 31, 2015 and December 31, 2014 consist of the following: | ||||||||
March 31, 2015 | December 31, 2014 | |||||||
(in thousands) | ||||||||
Ore on leach pads | $ | 6,456 | $ | 6,221 | ||||
In-process inventory | 4,775 | 2,302 | ||||||
Precious metals | 324 | 2,403 | ||||||
Materials and supplies | 1,376 | 1,478 | ||||||
Inventories | $ | 12,931 | $ | 12,404 | ||||
ASSET_RETIREMENT_OBLIGATIONS
ASSET RETIREMENT OBLIGATIONS | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
ASSET RETIREMENT OBLIGATIONS | ||||||||
ASSET RETIREMENT OBLIGATIONS | ||||||||
NOTE 4 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. | ||||||||
A reconciliation of the Company’s asset retirement obligations for the three months ended March 31, 2015 and for the year ended December 31, 2014 is as follows: | ||||||||
Three Months Ended | Year Ended | |||||||
March 31, 2015 | December 31, 2014 | |||||||
(in thousands) | ||||||||
Asset retirement obligation liability, beginning balance | $ | 7,471 | $ | 7,247 | ||||
Settlements | — | (52 | ) | |||||
Accretion of liability | 101 | 407 | ||||||
Adjustment reflecting updated estimates | — | (131 | ) | |||||
Asset retirement obligation liability, ending balance | $ | 7,572 | $ | 7,471 | ||||
As at March 31, 2015, the current portion of the asset retirement obligation was $2.5 million (December 31, 2014 - $2.4 million). | ||||||||
Amortization of Mineral Property Interests and Asset Retirement Costs | ||||||||
The definition of proven and probable reserves is set forth in 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 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 months ended March 31, 2015, the Company recorded $0.3 million (March 31, 2014 — $0.3 million) of amortization expense related to El Gallo 1, which is included in Production Costs Applicable to Sales in the Statement of Operations and Comprehensive Income for the three months ended March 31, 2015, of which $0.1 million (2014 — $0.1 million) related to the amortization of capitalized asset retirement costs. | ||||||||
INVESTMENT_IN_MINERA_SANTA_CRU
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE | ||||||||
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE | ||||||||
NOTE 5 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 income of $0.6 million for the three months ended March 31, 2015 (March 31, 2014 - $3.0 million). These amounts are inclusive 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 months ended March 31, 2015. | ||||||||
During the three months ended March 31, 2015, the Company did not receive dividends from MSC, whereas a $3.9 million was received during the same period in 2014. | ||||||||
Changes in the Company’s investment in MSC for the three months ended March 31, 2015 and year ended December 31, 2014 are as follows: | ||||||||
Three months ended | Year ended | |||||||
March 31, 2015 | December 31, 2014 | |||||||
(in thousands) | ||||||||
Investment in MSC, beginning balance | $ | 177,018 | $ | 212,947 | ||||
Attributable net income (loss) from MSC | 604 | (2,597 | ) | |||||
Amortization of fair value increments | (2,687 | ) | (13,190 | ) | ||||
Income tax recovery | 2,412 | 10,503 | ||||||
Dividend distribution received | — | (9,483 | ) | |||||
Impairment of investment in MSC | — | (21,162 | ) | |||||
Investment in MSC, ending balance | $ | 177,347 | $ | 177,018 | ||||
A summary of the operating results from MSC for the three months ended March 31, 2015 and 2014, is as follows: | ||||||||
Three months ended March 31, | ||||||||
2015 | 2014 | |||||||
(in thousands) | ||||||||
Minera Santa Cruz S.A. (100%) | ||||||||
Net sales | $ | 45,891 | $ | 56,889 | ||||
Production costs applicable to sales | (36,863 | ) | (39,637 | ) | ||||
Net income | 1,232 | 6,182 | ||||||
Portion attributable to McEwen Mining Inc. (49%) | ||||||||
Net income on investment in MSC | $ | 604 | $ | 3,029 | ||||
Amortization of fair value increments | (2,687 | ) | (2,701 | ) | ||||
Income tax recovery | 2,412 | 6,701 | ||||||
Income from investment in MSC, net of amortization | $ | 329 | $ | 7,029 | ||||
As at March 31, 2015, MSC had current assets of $106.3 million, total assets of $525.8 million, current liabilities of $51.9 million and total liabilities of $163.8 million on an unaudited basis. These balances include the adjustments to fair value and amortization of the fair value increments arising from the purchase price allocation, net of impairment charges recorded in the second quarter of 2013 and fourth quarter of 2014. Excluding the fair value increments from the purchase price allocation, net of impairment charges, MSC had current assets of $105 million, total assets of $302.1 million, current liabilities of $55.4 million, and total liabilities of $92 million as at March 31, 2015. | ||||||||
SHAREHOLDERS_EQUITY
SHAREHOLDERS' EQUITY | 3 Months Ended |
Mar. 31, 2015 | |
SHAREHOLDERS' EQUITY | |
SHAREHOLDERS' EQUITY | |
NOTE 6 SHAREHOLDERS’ EQUITY | |
During the three months ended March 31, 2015, 0.9 million exchangeable shares were converted into common stock. | |
During the three months ended March 31, 2015, the Company issued 430,295 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. The fair value of the common stock at the time of issuance was $0.4 million. The agreement with this mining contractor expired and was renegotiated during the quarter. Under the revised agreement, the Company can no longer make share payments and instead is required to pay in cash. | |
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended | |||
Mar. 31, 2015 | ||||
STOCK-BASED COMPENSATION | ||||
STOCK-BASED COMPENSATION | ||||
NOTE 7 STOCK-BASED COMPENSATION | ||||
During the three months ended March 31, 2015, the Company granted stock options to certain employees for an aggregate of 0.1 million shares of common stock at a weighted average exercise price of $1.06 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 comparative period in 2014, no stock options were granted to employees or directors. The principal assumptions used in applying the Black-Scholes option pricing model for these awards were as follows: | ||||
2015 | ||||
Risk-free interest rate | 1.10% | |||
Dividend yield | n/a | |||
Volatility factor of the expected market price of common stock | 75% | |||
Weighted-average expected life of option | 3.5 years | |||
Weighted-average grant date fair value | $0.56 | |||
During the three months ended March 31, 2015, the Company recorded stock option expense of $0.4 million. This compares to $0.4 million for the three months ended March 31, 2014. | ||||
INCOME_TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2015 | |
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. While the Company recorded net income during the quarter in Mexico, it does not expect to incur current income taxes payable given the sufficient availability of loss carryforwards. This deferred tax liability is impacted by fluctuations in the foreign exchange rate between the Argentine peso and U.S. dollar. For the three months ended March 31, 2015, the Company recorded an income tax recovery of $1.2 million as a result of the Argentine peso devaluation, compared to $18.9 million recorded for the three months ended March 31, 2014. | |
NET_INCOME_PER_SHARE
NET INCOME PER SHARE | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
NET INCOME PER SHARE | ||||||||
NET INCOME PER SHARE | ||||||||
NOTE 9 NET INCOME PER SHARE | ||||||||
Basic net income per share is computed by dividing the net income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted net 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 income per share for the three months ended March 31, 2015 and 2014: | ||||||||
Three months ended March 31, | ||||||||
2015 | 2014 | |||||||
(in thousands, except per share) | ||||||||
Net income | $ | 6,021 | $ | 17,887 | ||||
Weighted average common shares outstanding (thousands): | ||||||||
Basic | 297,255 | 297,159 | ||||||
Effect of employee stock-based awards | 11 | 1,251 | ||||||
Diluted | 297,266 | 298,410 | ||||||
Net income per share: | ||||||||
Basic | $ | 0.02 | $ | 0.06 | ||||
Diluted | $ | 0.02 | $ | 0.06 | ||||
For the three months ended March 31, 2015, options to purchase 5 million shares of common stock outstanding at March 31, 2015 (March 31, 2014 — 1.5 million) at an average exercise price of $3.32 per share (March 31, 2014 — $5.95) 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 three months ended March 31, 2015 and 2014, respectively. | ||||||||
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2015 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | |
NOTE 10 RELATED PARTY TRANSACTIONS | |
For the three months ended March 31, 2015, the Company incurred and paid $16,137 (March 31, 2014 - $20,480) to an entity affiliated with the Company’s Chairman and Chief Executive Officer for the use of an aircraft. | |
SEGMENTED_INFORMATION
SEGMENTED INFORMATION | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
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 three months ended March 31, 2015 and 2014 is as follows: | |||||||||||||||||
For the three months ended March 31, 2015 | |||||||||||||||||
Corporate | |||||||||||||||||
Argentina | Mexico | U.S. | & Other | Total | |||||||||||||
(in thousands) | |||||||||||||||||
For the three months ended March 31, 2015 | |||||||||||||||||
Gold and silver sales | $ | — | $ | 22,882 | $ | — | $ | — | $ | 22,882 | |||||||
Production costs applicable to sales | — | (10,454 | ) | — | — | (10,454 | ) | ||||||||||
Mine development costs | — | (174 | ) | — | — | (174 | ) | ||||||||||
Exploration costs | (263 | ) | (1,599 | ) | (389 | ) | (91 | ) | (2,342 | ) | |||||||
Income from investment in Minera Santa Cruz S.A. (net of amortization) | 329 | — | — | — | 329 | ||||||||||||
Operating income (loss) | (219 | ) | 8,347 | (681 | ) | (2,279 | ) | 5,168 | |||||||||
As at March 31, 2015 | |||||||||||||||||
Investment in Minera Santa Cruz S.A. | 177,347 | — | — | — | 177,347 | ||||||||||||
Mineral property interests | 202,889 | 10,374 | 74,227 | — | 287,490 | ||||||||||||
Total assets | 382,883 | 58,970 | 74,885 | 9,995 | 526,733 | ||||||||||||
For the three months ended March 31, 2014 | |||||||||||||||||
Corporate | |||||||||||||||||
Argentina | Mexico | U.S. | & Other | Total | |||||||||||||
(in thousands) | |||||||||||||||||
For the three months ended March 31, 2014 | |||||||||||||||||
Gold and silver sales | $ | — | $ | 11,130 | $ | — | $ | — | $ | 11,130 | |||||||
Production costs applicable to sales | — | (8,527 | ) | — | — | (8,527 | ) | ||||||||||
Mine construction costs | — | (939 | ) | (939 | ) | ||||||||||||
Mine development costs | — | (1,568 | ) | — | — | (1,568 | ) | ||||||||||
Exploration costs | (501 | ) | (1,388 | ) | (686 | ) | (105 | ) | (2,680 | ) | |||||||
Income on investment in Minera Santa Cruz S.A. (net of amortization) | 7,029 | — | — | 7,029 | |||||||||||||
Operating income (loss) | 6,258 | (3,048 | ) | (1,429 | ) | (2,343 | ) | (562 | ) | ||||||||
As at December 31, 2014 | |||||||||||||||||
Investment in Minera Santa Cruz S.A. | 177,018 | — | — | — | 177,018 | ||||||||||||
Mineral property interests | 202,889 | 10,696 | 74,227 | — | 287,812 | ||||||||||||
Total assets | 382,637 | 58,936 | 74,806 | 6,579 | 522,958 | ||||||||||||
FAIR_VALUE_ACCOUNTING
FAIR VALUE ACCOUNTING | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
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 March 31, 2015 and December 31, 2014, 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. | ||||||||||||||
As at March 31, 2015 | ||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||
(in thousands) | ||||||||||||||
Assets: | ||||||||||||||
Investments | $ | 1,945 | $ | 1,945 | $ | — | $ | — | ||||||
$ | 1,945 | $ | 1,945 | $ | — | $ | — | |||||||
As at December 31, 2014 | ||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||
(in thousands) | ||||||||||||||
Assets: | ||||||||||||||
Investments | $ | 1,082 | $ | 1,082 | $ | — | $ | — | ||||||
$ | 1,082 | $ | 1,082 | $ | — | $ | — | |||||||
Liabilities: | ||||||||||||||
Portion of accounts payable and accrued liabilities recorded at fair value | 355 | 355 | — | — | ||||||||||
$ | 355 | $ | 355 | $ | — | $ | — | |||||||
The Company’s investments are marketable equity securities which are exchange traded, are valued using quoted market prices in active markets and are classified within Level 1 of the fair value hierarchy. The fair value of the investments is calculated as the quoted market price of the marketable equity security multiplied by the number of shares held by the Company. | ||||||||||||||
As at December 31, 2014, accounts payable included an accrual of $0.4 million for the fair value of accounts payable that were required to be settled with approximately 319,640 shares of the Company’s common stock. The Company settled this payable during the three month period ended in March 31, 2015 as discussed in Note 6, Shareholders’ Equity. | ||||||||||||||
The fair value of other financial assets and liabilities were assumed to approximate their carrying values due to their short-term nature and historically negligible credit losses. | ||||||||||||||
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2015 | |
COMMITMENTS AND CONTINGENCIES. | |
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, 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 March 31, 2015, there were $4.8 million of outstanding surety bonds (December 31, 2014 - $4.8 million). The annual financing fees are 1.5% of the value of the surety bonds, with a required initial deposit of 10% ($0.5 million), which is included in Other Assets in the Consolidated Balance Sheet. | |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2015 | |
SUBSEQUENT EVENTS. | |
SUBSEQUENT EVENTS | |
NOTE 14 SUBSEQUENT EVENTS | |
On April 7, 2015, the Company reported approximately 7,000 ounces of gold equivalent in concentrate was stolen from its refinery, in Mexico. After analysis, it was determined the amount stolen was approximately 6,350 ounces. The estimated cost of the gold equivalent in concentrate was approximately $2.8 million and is included as in-process inventory as at March 31, 2015. Insurance claim procedures are currently ongoing and the extent of the insurance proceeds to be received is yet to be determined. | |
On April 17, 2015, the Company entered into a simple line of credit agreement with Banco Nacional de Comercio Exterior (“Banco Nacional”), subject to final registration and administrative procedures, for an amount up to 90,000,000 Mexican pesos (approximately $5.9 million as of March 31, 2015), secured by the Company’s IVA receivable balance. The Company has six months from the date of execution to withdraw funds, with a repayment term of no more than two years from the date of execution. The applicable interest will be the result of the interest rate determined upon the first withdrawal of funds + TIIE (Interbank Equilibrium Interest Rate in Mexico), payable quarterly. Upon signing the agreement, the Company paid a 1% commission on the total value of the simple credit agreement to Banco Nacional. No withdrawal has been made as of the date of this filing. | |
INVENTORIES_Tables
INVENTORIES (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
INVENTORIES | ||||||||
Schedule of inventories | March 31, 2015 | December 31, 2014 | ||||||
(in thousands) | ||||||||
Ore on leach pads | $ | 6,456 | $ | 6,221 | ||||
In-process inventory | 4,775 | 2,302 | ||||||
Precious metals | 324 | 2,403 | ||||||
Materials and supplies | 1,376 | 1,478 | ||||||
Inventories | $ | 12,931 | $ | 12,404 | ||||
ASSET_RETIREMENT_OBLIGATIONS_T
ASSET RETIREMENT OBLIGATIONS (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
ASSET RETIREMENT OBLIGATIONS | ||||||||
Schedule of reconciliation of asset retirement obligations | Three Months Ended | Year Ended | ||||||
March 31, 2015 | December 31, 2014 | |||||||
(in thousands) | ||||||||
Asset retirement obligation liability, beginning balance | $ | 7,471 | $ | 7,247 | ||||
Settlements | — | (52 | ) | |||||
Accretion of liability | 101 | 407 | ||||||
Adjustment reflecting updated estimates | — | (131 | ) | |||||
Asset retirement obligation liability, ending balance | $ | 7,572 | $ | 7,471 | ||||
INVESTMENT_IN_MINERA_SANTA_CRU1
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE | ||||||||
Schedule of change in the entity's investment in MSC | Three months ended | Year ended | ||||||
March 31, 2015 | December 31, 2014 | |||||||
(in thousands) | ||||||||
Investment in MSC, beginning balance | $ | 177,018 | $ | 212,947 | ||||
Attributable net income (loss) from MSC | 604 | (2,597 | ) | |||||
Amortization of fair value increments | (2,687 | ) | (13,190 | ) | ||||
Income tax recovery | 2,412 | 10,503 | ||||||
Dividend distribution received | — | (9,483 | ) | |||||
Impairment of investment in MSC | — | (21,162 | ) | |||||
Investment in MSC, ending balance | $ | 177,347 | $ | 177,018 | ||||
Summary of MSC's financial information from operations | Three months ended March 31, | |||||||
2015 | 2014 | |||||||
(in thousands) | ||||||||
Minera Santa Cruz S.A. (100%) | ||||||||
Net sales | $ | 45,891 | $ | 56,889 | ||||
Production costs applicable to sales | (36,863 | ) | (39,637 | ) | ||||
Net income | 1,232 | 6,182 | ||||||
Portion attributable to McEwen Mining Inc. (49%) | ||||||||
Net income on investment in MSC | $ | 604 | $ | 3,029 | ||||
Amortization of fair value increments | (2,687 | ) | (2,701 | ) | ||||
Income tax recovery | 2,412 | 6,701 | ||||||
Income from investment in MSC, net of amortization | $ | 329 | $ | 7,029 | ||||
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended | |||
Mar. 31, 2015 | ||||
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 | 2015 | |||
Risk-free interest rate | 1.10% | |||
Dividend yield | n/a | |||
Volatility factor of the expected market price of common stock | 75% | |||
Weighted-average expected life of option | 3.5 years | |||
Weighted-average grant date fair value | $0.56 | |||
NET_INCOME_PER_SHARE_Tables
NET INCOME PER SHARE (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
NET 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 March 31, | |||||||
2015 | 2014 | |||||||
(in thousands, except per share) | ||||||||
Net income | $ | 6,021 | $ | 17,887 | ||||
Weighted average common shares outstanding (thousands): | ||||||||
Basic | 297,255 | 297,159 | ||||||
Effect of employee stock-based awards | 11 | 1,251 | ||||||
Diluted | 297,266 | 298,410 | ||||||
Net income per share: | ||||||||
Basic | $ | 0.02 | $ | 0.06 | ||||
Diluted | $ | 0.02 | $ | 0.06 | ||||
SEGMENTED_INFORMATION_Tables
SEGMENTED INFORMATION (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
SEGMENTED INFORMATION | |||||||||||||||||
Schedule of the financial information relating to the Company's segments | For the three months ended March 31, 2015 | ||||||||||||||||
Corporate | |||||||||||||||||
Argentina | Mexico | U.S. | & Other | Total | |||||||||||||
(in thousands) | |||||||||||||||||
For the three months ended March 31, 2015 | |||||||||||||||||
Gold and silver sales | $ | — | $ | 22,882 | $ | — | $ | — | $ | 22,882 | |||||||
Production costs applicable to sales | — | (10,454 | ) | — | — | (10,454 | ) | ||||||||||
Mine development costs | — | (174 | ) | — | — | (174 | ) | ||||||||||
Exploration costs | (263 | ) | (1,599 | ) | (389 | ) | (91 | ) | (2,342 | ) | |||||||
Income from investment in Minera Santa Cruz S.A. (net of amortization) | 329 | — | — | — | 329 | ||||||||||||
Operating income (loss) | (219 | ) | 8,347 | (681 | ) | (2,279 | ) | 5,168 | |||||||||
As at March 31, 2015 | |||||||||||||||||
Investment in Minera Santa Cruz S.A. | 177,347 | — | — | — | 177,347 | ||||||||||||
Mineral property interests | 202,889 | 10,374 | 74,227 | — | 287,490 | ||||||||||||
Total assets | 382,883 | 58,970 | 74,885 | 9,995 | 526,733 | ||||||||||||
For the three months ended March 31, 2014 | |||||||||||||||||
Corporate | |||||||||||||||||
Argentina | Mexico | U.S. | & Other | Total | |||||||||||||
(in thousands) | |||||||||||||||||
For the three months ended March 31, 2014 | |||||||||||||||||
Gold and silver sales | $ | — | $ | 11,130 | $ | — | $ | — | $ | 11,130 | |||||||
Production costs applicable to sales | — | (8,527 | ) | — | — | (8,527 | ) | ||||||||||
Mine construction costs | — | (939 | ) | (939 | ) | ||||||||||||
Mine development costs | — | (1,568 | ) | — | — | (1,568 | ) | ||||||||||
Exploration costs | (501 | ) | (1,388 | ) | (686 | ) | (105 | ) | (2,680 | ) | |||||||
Income on investment in Minera Santa Cruz S.A. (net of amortization) | 7,029 | — | — | 7,029 | |||||||||||||
Operating income (loss) | 6,258 | (3,048 | ) | (1,429 | ) | (2,343 | ) | (562 | ) | ||||||||
As at December 31, 2014 | |||||||||||||||||
Investment in Minera Santa Cruz S.A. | 177,018 | — | — | — | 177,018 | ||||||||||||
Mineral property interests | 202,889 | 10,696 | 74,227 | — | 287,812 | ||||||||||||
Total assets | 382,637 | 58,936 | 74,806 | 6,579 | 522,958 | ||||||||||||
FAIR_VALUE_ACCOUNTING_Tables
FAIR VALUE ACCOUNTING (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
FAIR VALUE ACCOUNTING | ||||||||||||||
Schedule of assets and liabilities measured at fair value on a recurring basis by level within the fair value hierarchy | As at March 31, 2015 | |||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||
(in thousands) | ||||||||||||||
Assets: | ||||||||||||||
Investments | $ | 1,945 | $ | 1,945 | $ | — | $ | — | ||||||
$ | 1,945 | $ | 1,945 | $ | — | $ | — | |||||||
As at December 31, 2014 | ||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||
(in thousands) | ||||||||||||||
Assets: | ||||||||||||||
Investments | $ | 1,082 | $ | 1,082 | $ | — | $ | — | ||||||
$ | 1,082 | $ | 1,082 | $ | — | $ | — | |||||||
Liabilities: | ||||||||||||||
Portion of accounts payable and accrued liabilities recorded at fair value | 355 | 355 | — | — | ||||||||||
$ | 355 | $ | 355 | $ | — | $ | — | |||||||
NATURE_OF_OPERATIONS_AND_SUMMA1
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (MSC) | Mar. 31, 2015 | Mar. 31, 2014 |
MSC | ||
THE COMPANY | ||
Ownership interest (as a percent) | 49.00% | 49.00% |
INVESTMENTS_Details
INVESTMENTS (Details) (USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
INVESTMENTS | ||
Cash investments in marketable equity securities | $1,200,000 | |
Cost of purchase of marketable equity securities | 1,600,000 | 400,000 |
Market value of available-sale-securities | 1,945,000 | 1,082,000 |
Unrealized loss on available-for-sale securities | $200,000 |
INVENTORIES_Details
INVENTORIES (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
INVENTORIES | ||
Ore on leach pads | $6,456 | $6,221 |
In-process inventory | 4,775 | 2,302 |
Precious metals | 324 | 2,403 |
Materials and supplies | 1,376 | 1,478 |
Inventories | $12,931 | $12,404 |
ASSET_RETIREMENT_OBLIGATIONS_D
ASSET RETIREMENT OBLIGATIONS (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Changes in the asset retirement obligations | |||
Outstanding surety bonds | $4,800,000 | $4,800,000 | |
Amortization of mineral property interests and asset retirement obligations | 322,000 | 322,000 | |
Asset retirement obligation liability, beginning balance | 7,471,000 | 7,247,000 | 7,247,000 |
Settlements | -52,000 | ||
Accretion of liability | 101,000 | 101,000 | 407,000 |
Adjustment reflecting updated estimates | -131,000 | ||
Asset retirement obligation liability, ending balance | 7,572,000 | 7,471,000 | |
Current portion of the asset retirement obligation | 2,456,000 | 2,427,000 | |
Tonkin property and El Gallo 1 mine portion of the El Gallo Complex | |||
Changes in the asset retirement obligations | |||
Number of most significant properties subject to reclamation obligations | 2 | ||
El Gallo mine | |||
Changes in the asset retirement obligations | |||
Amortization of mineral property interests and asset retirement obligations | 300,000 | 300,000 | |
Amortization of capitalized asset retirement costs | $100,000 | $100,000 |
INVESTMENT_IN_MINERA_SANTA_CRU2
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2014 | Mar. 31, 2015 |
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE | |||
Dividends received | $3,945 | ||
MSC | |||
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE | |||
Ownership interest (as a percent) | 49.00% | 49.00% | |
Dividends received | $3,900 |
INVESTMENT_IN_MINERA_SANTA_CRU3
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Change in the investment in MSC | |||
Investment in MSC, beginning balance | $177,018 | ||
Income tax recovery | -1,163 | -18,957 | |
Investment in MSC, ending balance | 177,347 | ||
MSC | |||
Change in the investment in MSC | |||
Investment in MSC, beginning balance | 177,018 | 212,947 | 212,947 |
Attributable net Income (loss) from MSC | 604 | 3,029 | -2,597 |
Amortization of fair value increments | -2,687 | -2,701 | -13,190 |
Income tax recovery | 2,412 | 6,701 | 10,503 |
Dividend distribution received | -9,483 | ||
Impairment of investment in MSC | -21,162 | ||
Investment in MSC, ending balance | $177,347 | $177,018 |
INVESTMENT_IN_MINERA_SANTA_CRU4
INVESTMENT IN MINERA SANTA CRUZ S.A. (''MSC'') - SAN JOSE MINE (Details 3) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE | |||
Income tax recovery | ($1,163) | ($18,957) | |
Income on investment in Minera Santa Cruz S.A. (net of amortization) | 329 | 7,029 | |
MSC | |||
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE | |||
Net sales percentage | 100.00% | 100.00% | |
Net sales | 45,891 | 56,889 | |
Production costs applicable to sales | -36,863 | -39,637 | |
Net income | 1,232 | 6,182 | |
Ownership interest (as a percent) | 49.00% | 49.00% | |
Net income on investment in MSC | 604 | 3,029 | -2,597 |
Amortization of fair value increments | -2,687 | -2,701 | -13,190 |
Income tax recovery | 2,412 | 6,701 | 10,503 |
Income on investment in Minera Santa Cruz S.A. (net of amortization) | $329 | $7,029 |
INVESTMENT_IN_MINERA_SANTA_CRU5
INVESTMENT IN MINERA SANTA CRUZ S.A. (''MSC'') - SAN JOSE MINE (Details 4) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Mar. 31, 2015 |
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE | ||
Current assets | $39,701 | $43,547 |
Total assets | 522,958 | 526,733 |
Current liabilities | 24,081 | 22,331 |
Total liabilities | 81,743 | 78,810 |
MSC | ||
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE | ||
Current assets | 106,300 | |
Total assets | 525,800 | |
Current liabilities | 51,900 | |
Total liabilities | 163,800 | |
Impairment of investment in MSC | 21,162 | |
MSC | Current Period Values Excluding Fair Value Increments And Impairment Charge | ||
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE | ||
Current assets | 105,000 | |
Total assets | 302,100 | |
Current liabilities | 55,400 | |
Total liabilities | $92,000 |
SHAREHOLDERS_EQUITY_Details
SHAREHOLDERS' EQUITY (Details) (USD $) | 3 Months Ended |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 |
item | |
Exchangeable shares converted into common stock | 900,000 |
Number of mining contractors with which the entity has entered into an agreement | 1 |
Stock Issued During Period, Value, Issued for Services | $443 |
Common Stock | |
Shares issued for settlement of accounts payable (in shares) | 430,295 |
Stock Issued During Period, Value, Issued for Services | $443 |
STOCKBASED_COMPENSATION_Detail
STOCK-BASED COMPENSATION (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
STOCK BASED COMPENSATION | |||
Stock option expense | $0.40 | $0.40 | |
Principal assumptions used in applying the Black-Scholes option pricing model for the awards | |||
Risk-free interest rate (as a percent) | 1.10% | ||
Volatility factor of the expected market price of common stock (as a percent) | 75.00% | ||
Weighted-average expected life of option | 3 years 6 months | ||
Weighted-average grant date fair value (in dollars per share) | $0.56 | ||
Certain employees and directors | |||
STOCK BASED COMPENSATION | |||
Stock options granted (in shares) | 0.1 | 0 | |
Exercise price of options granted (in dollars per share) | $1.06 | ||
Vesting period of options | 3 years | ||
Exercisable period of options | 5 years |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
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 | $1.20 | $18.90 |
NET_INCOME_PER_SHARE_Details
NET INCOME PER SHARE (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
NET INCOME PER SHARE | ||
Net (loss) income | $6,021 | $17,887 |
Weighted average common shares outstanding (thousands): | ||
Basic (in shares) | 297,255,000 | 297,159,000 |
Effect of employee stock-based awards (in shares) | 11,000 | 1,251,000 |
Diluted (in shares) | 297,266,000 | 298,410,000 |
Net income (loss) per share: | ||
Basic (in dollars per share) | $0.02 | $0.06 |
Diluted (in dollars per share) | $0.02 | $0.06 |
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) | 5,000,000 | 1,500,000 |
Average exercise price of options outstanding (in dollars per share) | $3.32 | $5.95 |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details) (Entity Affiliated With Related Party, Chairman and Chief Executive Officer, USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Entity Affiliated With Related Party | Chairman and Chief Executive Officer | ||
RELATED PARTY TRANSACTIONS | ||
Amount of expenses incurred and paid | $16,137 | $20,480 |
SEGMENTED_INFORMATION_Details
SEGMENTED INFORMATION (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Operating Segment Reporting | |||
Gold and silver sales | $22,882 | $11,130 | |
Production costs applicable to sales | -10,454 | -8,527 | |
Mine construction costs | -939 | ||
Mine development costs | -174 | -1,568 | |
Exploration costs | -2,342 | -2,680 | |
Income on investment in Minera Santa Cruz S.A. (net of amortization) | 329 | 7,029 | |
Operating loss | 5,168 | -562 | |
Investment in Minera Santa Cruz S.A. | 177,347 | 177,018 | |
Mineral property interests | 287,490 | 287,812 | |
Total assets | 526,733 | 522,958 | |
Argentina | |||
Operating Segment Reporting | |||
Exploration costs | -263 | -501 | |
Income on investment in Minera Santa Cruz S.A. (net of amortization) | 329 | 7,029 | |
Operating loss | -219 | 6,258 | |
Investment in Minera Santa Cruz S.A. | 177,347 | 177,018 | |
Mineral property interests | 202,889 | 202,889 | |
Total assets | 382,883 | 382,637 | |
Mexico | |||
Operating Segment Reporting | |||
Gold and silver sales | 22,882 | 11,130 | |
Production costs applicable to sales | -10,454 | -8,527 | |
Mine construction costs | -939 | ||
Mine development costs | -174 | -1,568 | |
Exploration costs | -1,599 | -1,388 | |
Operating loss | 8,347 | -3,048 | |
Mineral property interests | 10,374 | 10,696 | |
Total assets | 58,970 | 58,936 | |
United States | |||
Operating Segment Reporting | |||
Exploration costs | -389 | -686 | |
Operating loss | -681 | -1,429 | |
Mineral property interests | 74,227 | 74,227 | |
Total assets | 74,885 | 74,806 | |
Corporate & Other | |||
Operating Segment Reporting | |||
Exploration costs | -91 | -105 | |
Operating loss | -2,279 | -2,343 | |
Total assets | $9,995 | $6,579 |
FAIR_VALUE_ACCOUNTING_Details
FAIR VALUE ACCOUNTING (Details) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Mar. 31, 2015 |
Liabilities: | ||
Shares of common stock required to be issued as part of settlement | 319,640 | |
Recurring | Total | ||
Assets: | ||
Investments | 1,082 | $1,945 |
Assets | 1,082 | 1,945 |
Liabilities: | ||
Portion of accounts payable and accrued liabilities recorded at fair value | 355 | |
Liabilities | 355 | |
Recurring | Level 1 | ||
Assets: | ||
Investments | 1,082 | 1,945 |
Assets | 1,082 | 1,945 |
Liabilities: | ||
Portion of accounts payable and accrued liabilities recorded at fair value | 355 | |
Liabilities | 355 |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
COMMITMENTS AND CONTINGENCIES. | ||
Outstanding surety bonds | $4.80 | $4.80 |
Percentage of annual fees on surety bonds | 1.50% | |
Percentage of upfront deposit on surety bonds | 10.00% | |
Surety bonds upfront deposit amount | $0.50 |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details) (Subsequent Events) | 0 Months Ended | 0 Months Ended | |||
Apr. 17, 2015 | Apr. 17, 2015 | Apr. 17, 2015 | Apr. 17, 2015 | Apr. 07, 2015 | |
Secured Debt | Secured Debt | Secured Debt | Secured Debt | Stolen Gold Equivalent In Concentrate | |
USD ($) | USD ($) | MXN | Maximum | USD ($) | |
oz | |||||
Subsequent Events | |||||
Number of ounces of gold equivalent in concentrate reported stolen | 7,000 | ||||
Revised number of ounces of gold equivalent in concentrate stolen | 6,350 | ||||
Estimated cost of gold equivalent in concentrate ounces stolen | $2,800,000 | ||||
Maximum borrowing capacity | 5,900,000 | 90,000,000 | |||
Period to withdraw funds | 6 months | ||||
Debt Instrument Term | 2 years | ||||
Commission paid in percentage | 1.00% | ||||
Amount withdrawn from the credit facility | $0 |