Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | May 07, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2021 | |
Entity File Number | 001-33190 | |
Entity Registrant Name | MCEWEN MINING INC. | |
Entity Incorporation, State or Country Code | CO | |
Entity Tax Identification Number | 84-0796160 | |
Entity Address, Address Line One | 150 King Street West | |
Entity Address, Address Line Two | SuiteĀ 2800 | |
Entity Address, City or Town | Toronto | |
Entity Address, State or Province | ON | |
Entity Address, Country | CA | |
Entity Address, Postal Zip Code | M5H 1J9 | |
City Area Code | 866 | |
Local Phone Number | 441-0690 | |
Title of 12(b) Security | Common stock, no par value | |
Trading Symbol | MUX | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 459,187,391 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000314203 | |
Amendment Flag | false |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
REVENUE: | ||
Revenue | $ 23,740 | $ 31,400 |
OPERATING EXPENSES: | ||
Depreciation and depletion | (5,137) | (6,698) |
Gross loss | (4,986) | (3,685) |
OTHER OPERATING EXPENSES: | ||
Advanced projects | (1,799) | (2,550) |
Exploration | (4,956) | (3,790) |
General and administrative | (2,083) | (2,064) |
Loss from investment in Minera Santa Cruz S.A. (Note 9) | (574) | (2,676) |
Depreciation | (75) | (115) |
Revision of estimates and accretion of asset retirement obligations (Note 11) | (911) | (660) |
Impairment of mineral property interests and plant and equipment (Note 8) | (83,805) | |
Total other operating expenses | (10,398) | (95,660) |
Operating loss | (15,384) | (99,345) |
OTHER INCOME (EXPENSE): | ||
Interest and other finance expenses, net | (509) | (1,877) |
Other income (Note 4) | 1,412 | 937 |
Total other income (expense) | 903 | (940) |
Loss before income and mining taxes | (14,481) | (100,285) |
Income and mining tax recovery | 2,015 | 1,094 |
Net loss and comprehensive loss | $ (12,466) | $ (99,191) |
Net loss per share (Note 13): | ||
Basic and Diluted (in dollars per share) | $ (0.03) | $ (0.25) |
Weighted average common shares outstanding (thousands) (Note 13): | ||
Basic and Diluted (in shares) | 441,794 | 400,370 |
Gold and silver sales | ||
REVENUE: | ||
Revenue | $ 23,740 | $ 31,400 |
Production costs applicable to sales | ||
OPERATING EXPENSES: | ||
Production costs applicable to sales | $ (23,589) | $ (28,387) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 47,402 | $ 20,843 |
Receivables, prepaids and other assets (Note 6) | 5,700 | 5,690 |
Inventories (Note 7) | 27,910 | 26,964 |
Total current assets | 81,012 | 53,497 |
Mineral property interests and plant and equipment, net (Note 8) | 334,866 | 329,112 |
Investment in Minera Santa Cruz S.A. (Note 9) | 102,768 | 108,326 |
Inventories, long-term (Note 7) | 4,999 | 4,785 |
Restricted cash (Note 17) | 3,625 | 3,595 |
Other assets | 910 | 621 |
TOTAL ASSETS | 528,180 | 499,936 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 35,542 | 36,055 |
Flow-through share premium (Note 12) | 3,736 | 3,827 |
Lease liabilities, current portion | 2,638 | 2,440 |
Asset retirement obligation, current portion (Note 11) | 3,817 | 3,232 |
Total current liabilities | 45,733 | 45,554 |
Lease liabilities, long-term | 2,850 | 3,056 |
Debt (Note 10) | 24,163 | 24,080 |
Debt to related party (Notes 10 and 14) | 24,163 | 24,080 |
Asset retirement obligation, long-term (Note 11) | 31,167 | 30,768 |
Other liabilities | 3,114 | 3,257 |
Deferred income and mining tax liability | 3,241 | 3,813 |
Total liabilities | 134,431 | 134,608 |
Shareholders' equity: | ||
Common shares: 459,188 as of March 31, 2021 and 416,587 as of December 31, 2020 issued and outstanding (in thousands) (Note 12) | 1,589,763 | 1,548,876 |
Accumulated deficit | (1,196,014) | (1,183,548) |
Total shareholders' equity | 393,749 | 365,328 |
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY | $ 528,180 | $ 499,936 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares shares in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
CONSOLIDATED BALANCE SHEETS | ||
Common, shares issued | 459,188 | 416,587 |
Common, shares outstanding | 459,188 | 416,587 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock and Additional Paid-in CapitalFlow-through common shares | Common Stock and Additional Paid-in Capital | Accumulated Deficit | Flow-through common shares | Total |
Balance at Dec. 31, 2019 | $ 1,530,702 | $ (1,031,223) | $ 499,479 | ||
Balance (in shares) at Dec. 31, 2019 | 400,339,000 | ||||
Increase (Decrease) in Shareholders' Equity | |||||
Stock-based compensation | $ 88 | 88 | |||
Exercise of stock options | $ 62 | $ 62 | |||
Exercise of stock options (in shares) | 60,000 | 60,000 | |||
Net loss | (99,191) | $ (99,191) | |||
Balance at Mar. 31, 2020 | $ 1,530,852 | (1,130,414) | 400,438 | ||
Balance (in shares) at Mar. 31, 2020 | 400,399,000 | ||||
Balance at Dec. 31, 2020 | $ 1,548,876 | (1,183,548) | 365,328 | ||
Balance (in shares) at Dec. 31, 2020 | 416,587,000 | ||||
Increase (Decrease) in Shareholders' Equity | |||||
Stock-based compensation | $ 227 | $ 227 | |||
Exercise of stock options (in shares) | 0 | ||||
Stock issued during the period | $ 10,785 | $ 29,875 | $ 10,785 | $ 29,875 | |
Stock issued during the period (in shares) | 12,601,000 | 30,000,000 | |||
Net loss | (12,466) | (12,466) | |||
Balance at Mar. 31, 2021 | $ 1,589,763 | $ (1,196,014) | $ 393,749 | ||
Balance (in shares) at Mar. 31, 2021 | 459,188,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | ||
Net loss | $ (12,466) | $ (99,191) |
Adjustments to reconcile net loss from operating activities: | ||
Impairment of mineral property interests and plant and equipment (Note 8) | 83,805 | |
Loss from investment in Minera Santa Cruz S.A., net of amortization (Note 9) | 574 | 2,676 |
Depreciation and amortization | 4,662 | 6,757 |
Loss on investments (Note 5) | 898 | |
Unrealized foreign exchange loss (gain) and adjustment to estimate (Note 11) | 152 | (868) |
Income and mining tax (recovery) | (2,015) | (1,094) |
Stock-based compensation | 227 | 88 |
Revision of estimates and accretion of asset retirement obligations (Note 11) | 911 | 660 |
Change in non-cash working capital items: | ||
(Increase) decrease in other assets related to operations | (1,562) | 1,234 |
(Decrease) in liabilities related to operations | (626) | (6,873) |
Cash used in operating activities | (10,143) | (11,908) |
Cash flows from investing activities: | ||
Additions to mineral property interests and plant and equipment | (10,085) | (5,503) |
Proceeds from sale of investments, net of investments | 112 | |
Dividends received from Minera Santa Cruz S.A. (Note 9) | 4,984 | |
Cash used in investing activities | (5,101) | (5,391) |
Cash flows from financing activities: | ||
Proceeds from sale of shares, net of issuance costs (Note 12) | 29,875 | |
Sale of flow-through common shares, net of issuance costs (Note 12) | 11,966 | |
Proceeds of exercise of stock options | 62 | |
Payment of finance lease obligations | (8) | (555) |
Cash provided by (used in) financing activities | 41,833 | (493) |
Effect of exchange rate change on cash and cash equivalents | 114 | |
Increase (decrease) in cash, cash equivalents and restricted cash | 26,589 | (17,678) |
Cash, cash equivalents and restricted cash, beginning of period | 24,438 | 46,500 |
Cash, cash equivalents and restricted cash, end of period (Note 17) | 51,027 | 28,822 |
Supplemental disclosure of cash flow information: | ||
Interest paid | (1,215) | (1,289) |
Interest received | $ 7 | $ 135 |
NATURE OF OPERATIONS AND BASIS
NATURE OF OPERATIONS AND BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2021 | |
NATURE OF OPERATIONS AND BASIS OF PRESENTATION | |
NATURE OF OPERATIONS AND BASIS OF PRESENTATION | NOTE 1 NATURE OF OPERATIONS AND BASIS OF PRESENTATION McEwen Mining Inc. (the āCompanyā) was organized under the laws of the State of Colorado on July 24, 1979. The Company is engaged in the exploration, development, production and sale of gold and silver and exploration for copper. The Company operates in the United States, Canada, Mexico and Argentina. The Company owns a 100% interest in the Gold Bar gold mine in Nevada, the Black Fox gold mine in Ontario, Canada, the El Gallo gold project and the Fenix silver-gold project in Sinaloa, Mexico, the Los Azules copper deposit in San Juan, Argentina and a portfolio of exploration properties in Nevada, Canada, Mexico and Argentina. It also owns a 49% interest in Minera Santa Cruz S.A. (āMSCā), owner of the producing San JosĆ© silver-gold mine in Santa Cruz, Argentina, which is operated by the joint venture majority owner, Hochschild Mining plc. The interim consolidated financial statements included herein have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (āSECā) and are unaudited. While information and note disclosures normally included in financial statements which are prepared in accordance with accounting principles generally accepted in the United States of America (āU.S. GAAPā) have been condensed or omitted pursuant to such rules and regulations, the Company believes that the information and disclosures included are adequate and not misleading. In managementās opinion, the unaudited Consolidated Statements of Operations and Comprehensive Loss Statement of Operations Consolidated Balance Sheets Consolidated Statement of Changes in Shareholdersā Equity Consolidated Statements of Cash Flows |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES. | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 SIGNIFICANT ACCOUNTING POLICIES Risks and Uncertainties COVID-19 The Company continues to closely monitor and respond, as possible, to the ongoing COVID-19 pandemic. As the situation continues to rapidly change globally, ensuring the health and safety of the Companyās employees and contractors is one of the Companyās top priorities. Many jurisdictions including the United States, Canada, Mexico, and Argentina have varied but continued restrictions to travel, public gatherings, and certain business operations. Unlike the year 2020, there were no government-mandated shutdowns or other legally required temporary suspensions of the Companyās operations during Q1 2021. The long-term impact of the COVID-19 pandemic on the Companyās results of operations, financial position and cash flows will depend on future developments, including the duration and spread of the outbreak, variants of the COVID-19 virus, the availability and distribution of vaccinations, and government advisories, restrictions, and financial assistance offered. To ensure a safe working environment for the Companyās employees and contractors, and to prevent the spread of COVID-19, the Company continues to reinforce safety measures at all sites and offices including contact tracing, restricting non-essential travel, and complying with public health orders. The impact of COVID-19 on the global financial markets, the overall economy and the Company are highly uncertain and cannot be predicted. Achieving and maintaining normal operating capacity is also dependent on the continued availability of supplies and contractors, which are out of the Companyās control. If the financial markets and/or the overall economy continue to be impacted, the Companyās results of operations, financial position and cash flows may be further affected. As the situation continues to evolve, the Company will continue to monitor market conditions closely and respond accordingly. Throughout COVID-19, the Company has raised $12.7 million and $31.5 million through a Canadian Development Expenses (āCDEā) flow-through common share issuance and an equity financing respectively during Q1 2021, and raised $20.2 million in Canadian Exploration Expenditures (āCEEā) financings during 2020. A severe prolonged economic downturn could result in a variety of risks to the business, including access to capital markets when needed on acceptable terms, if at all. The Company has completed various scenario planning analyses to consider the potential impacts of COVID-19 on its business, including volatility in commodity prices, temporary disruptions and/or curtailments of operating activities (voluntary or involuntary). El Gallo Project Blockade On March 15, 2021, the Company reported an illegal blockade at the main access point to the Companyās El Gallo project in Mexico. Certain individuals involved in the blockade believed that the annual payments and infrastructure improvements made to the local communities should increase significantly. The Company has operated harmoniously with local communities since mining began in 2012, and has had a long standing track record of supporting local communities. On March 29, 2021, after operations were briefly disrupted, the Company reported the successful resolution of the concerns raised by the local community members. A 10-year ā Recently Adopted Accounting Pronouncements Income Taxes: |
OPERATING SEGMENT REPORTING
OPERATING SEGMENT REPORTING | 3 Months Ended |
Mar. 31, 2021 | |
OPERATING SEGMENT REPORTING | |
OPERATING SEGMENT REPORTING | NOTE 3 OPERATING SEGMENT REPORTING The Company is a mining and minerals production and exploration company focused on precious metals in the United States, Canada, Mexico, and Argentina. The Companyās chief operating decision maker (āCODMā) reviews the operating results, assesses performance and makes decisions about the allocation of resources to these segments at the geographic region level or major mine/project where the economic characteristics of the individual mines or projects within a geographic region are not alike. As a result, these operating segments also represent the Companyās reportable segments. The Companyās business activities that are not considered operating segments are included in General and Administrative and other and are provided in this note for reconciliation purposes. The CODM reviews segment income or loss, defined as gold and silver sales less production costs applicable to sales, depreciation and depletion, advanced projects and exploration costs for all segments except for the MSC segment, which is evaluated based on the attributable equity income or loss. Gold and silver sales and production costs applicable to sales for the reportable segments are reported net of intercompany transactions. Capital expenditures include costs capitalized in mineral property interests and plant and equipment in the respective periods. Significant information relating to the Companyās reportable operating segments is summarized in the tables below: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three months ended March 31, 2021 USA ā Canada ā Mexico ā MSC Los Azules Total Revenue from gold and silver sales ā $ 12,893 ā $ 8,561 ā $ 2,286 ā $ ā ā $ ā ā $ 23,740 Production costs applicable to sales ā ā (13,557) ā ā (6,656) ā ā (3,376) ā ā ā ā $ ā ā (23,589) Depreciation and depletion ā ā (1,741) ā ā (3,395) ā ā (1) ā ā ā ā $ ā ā ā (5,137) Gross (loss) ā ā (2,405) ā ā (1,490) ā ā (1,091) ā ā ā ā ā ā ā ā (4,986) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Advanced projects ā ā (84) ā ā (623) ā ā (1,092) ā ā ā ā $ ā ā (1,799) Exploration ā ā (864) ā ā (3,434) ā ā (8) ā ā ā ā $ (650) ā (4,956) Impairment of mineral property interests and plant and equipment (Note 8) ā ā ā ā ā ā ā ā ā ā ā ā ā $ ā ā ā ā Loss from investment in Minera Santa Cruz S.A. ā ā ā ā ā ā ā ā ā ā ā (574) ā $ ā ā (574) Segment loss ā $ (3,353) ā $ (5,547) ā $ (2,191) ā $ (574) ā $ (650) ā $ (12,315) General and Administrative and other ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (2,166) Loss before income and mining taxes ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā $ (14,481) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Capital expenditures ā $ 757 ā $ 9,567 ā $ ā ā $ ā ā $ ā ā $ 10,324 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three months ended March 31, 2020 USA Canada Mexico MSC Los Azules Total Revenue from gold and silver sales ā $ 14,317 ā $ 12,739 ā $ 4,344 ā $ ā ā $ ā ā $ 31,400 Production costs applicable to sales ā ā (17,032) ā ā (7,207) ā ā (4,148) ā ā ā ā ā ā ā ā (28,387) Depreciation and depletion ā ā (3,862) ā ā (2,748) ā ā (88) ā ā ā ā ā ā ā ā (6,698) Gross (loss) profit ā ā (6,577) ā ā 2,784 ā ā 108 ā ā ā ā ā ā ā ā (3,685) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Advanced projects ā ā (366) ā ā (1,066) ā ā (1,118) ā ā ā ā ā ā ā ā (2,550) Exploration ā ā (809) ā ā (2,405) ā ā ā ā ā ā ā ā (576) ā ā (3,790) Impairment of mineral property interests and plant and equipment (Note 8) ā ā (83,805) ā ā ā ā ā ā ā ā ā ā ā ā ā ā (83,805) Loss from investment in Minera Santa Cruz S.A. ā ā ā ā ā ā ā ā ā ā ā (2,676) ā ā ā ā ā (2,676) Segment loss ā $ (91,557) ā $ (687) ā $ (1,010) ā $ (2,676) ā $ (576) ā $ (96,506) General and Administrative and other ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (3,779) Loss before income and mining taxes ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā $ (100,285) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Capital expenditures ā $ 1,807 ā $ 3,729 ā $ ā ā $ ā ā $ ā ā $ 5,536 ā ā Geographic information Geographic information includes the long-lived assets balance and revenues presented for the Companyās operating segments, as follows: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Long-lived Assets ā Revenue (1) ā ā March 31, ā December 31, ā Three months ended March 31, ā 2021 2020 2021 ā 2020 USA ā $ 46,280 ā $ 46,801 ā $ 12,893 ā $ 14,317 Canada ā ā 85,811 ā ā 78,986 ā ā 8,561 ā ā 12,739 Mexico ā ā 20,018 ā ā 20,021 ā ā 2,286 ā ā 4,344 Argentina (2) ā ā 294,259 ā ā 299,816 ā ā ā ā ā ā Total consolidated (3) ā $ 446,368 ā $ 445,624 ā $ 23,740 ā $ 31,400 (1) Presented based on the location from which the product originated. (2) Includes Investment in MSC of $102.8 million as of March 31, 2021 (December 31, 2020 ā $108.3 million). (3) Total excludes $0.8 million related to the Company's ROU office lease asset as the business activities related to corporate are not considered to be a part of the operating segments . |
OTHER INCOME
OTHER INCOME | 3 Months Ended |
Mar. 31, 2021 | |
OTHER INCOME | |
OTHER INCOME | NOTE 4 OTHER INCOME The following is a summary of other income for the three months ended March 31, 2021 and 2020: ā ā ā ā ā ā ā ā Three months ended March 31, ā 2021 2020 COVID-19 Relief $ 1,111 ā $ ā Unrealized and realized (loss) on investments (Note 5) ā ā ā ā (898) Foreign currency (loss) gain ā 291 ā ā 1,808 Other income, net ā 10 ā ā 27 Total other income $ 1,412 ā $ 937 ā During the period ending March 31, 2021, the Company recognized $1.1 million (three months ended March 31, 2020 - $nil) of other income through COVID-19 relief from the Canadian government via the Canadian Emergency Wage Subsidy (CEWS) and Canada Emergency Rent Subsidy (CERS) programs. |
INVESTMENTS
INVESTMENTS | 3 Months Ended |
Mar. 31, 2021 | |
INVESTMENTS | |
INVESTMENTS | ā NOTE 5 INVESTMENTS ā The following is a summary of the activity in investments for the three months ended March 31, 2021 and 2020: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā As at ā Additions/ ā ā ā Disposals/ ā Unrealized ā Fair value ā ā December 31, ā transfers during ā Net (loss) on ā transfers during ā (loss) on ā March 31, ā 2020 period securities sold year securities held 2021 Marketable equity securities ā $ ā ā $ ā ā $ ā ā $ ā ā $ ā ā $ ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā As at ā Additions/ ā Net gain ā Disposals/ ā Unrealized ā Fair value ā ā December 31, ā transfers during ā (loss) on ā transfers during ā (loss) on ā March 31, ā 2019 period securities sold ā year ā securities held ā 2020 Marketable equity securities ā $ 1,885 ā $ ā ā $ (16) ā $ (112) ā $ (882) ā $ 875 ā During the three months ended March 31, 2021, the Company sold marketable equity securities for proceeds of $nil (three months ended March 31, 2020 - $0.1 million). |
RECEIVABLES, PREPAIDS AND OTHER
RECEIVABLES, PREPAIDS AND OTHER ASSETS | 3 Months Ended |
Mar. 31, 2021 | |
RECEIVABLES, PREPAIDS AND OTHER ASSETS | |
RECEIVABLES, PREPAIDS AND OTHER ASSETS | ā ā NOTE 6 RECEIVABLES, PREPAIDS AND OTHER ASSETS The following is a breakdown of balances in receivables, prepaids and other assets as at March 31, 2021 and December 31, 2020: ā ā ā ā ā ā ā ā ā March 31, 2021 December 31, 2020 Government sales tax receivable ā $ 1,502 ā $ 1,810 Prepaids and other assets ā ā 4,198 ā ā 3,880 Receivables and other current assets ā $ 5,700 ā $ 5,690 ā Government sales tax receivable includes $0.7 million of Mexican value-added tax (āVATā) at March 31, 2021 (December 31, 2020 ā $0.9 million). The Compan |
INVENTORIES
INVENTORIES | 3 Months Ended |
Mar. 31, 2021 | |
INVENTORIES | |
INVENTORIES | NOTE 7 INVENTORIES Inventories at March 31, 2021 and December 31, 2020 consisted of the following: ā ā ā ā ā ā ā ā ā March 31, 2021 December 31, 2020 Material on leach pads ā $ 21,200 ā $ 21,003 In-process inventory ā 3,377 ā 3,922 Stockpiles ā 2,537 ā 635 Precious metals ā 1,560 ā 1,344 Materials and supplies ā 4,235 ā 4,845 Inventories ā $ 32,909 ā $ 31,749 Less current portion ā ā 27,910 ā ā 26,964 Long-term portion ā $ 4,999 ā $ 4,785 ā During the three months ended March 31, 2021, the inventory of Gold Bar and El Gallo were written down to their net realizable value by $1.4 million (March 31, 2020 - $1.2); and $0.8 (March 31, 2020 - $nil), respectively. Of these write-downs, a total of $2.1 million (March 31, 2020 ā $1.0 million) was included in production costs applicable to sales and $0.1 million was included in depreciation and depletion (March 31, 2020 - $0.2 million) in the Statement of Operations |
MINERAL PROPERTY INTERESTS AND
MINERAL PROPERTY INTERESTS AND PLANT AND EQUIPMENT | 3 Months Ended |
Mar. 31, 2021 | |
MINERAL PROPERTY INTERESTS AND PLANT AND EQUIPMENT | |
MINERAL PROPERTY INTERESTS AND PLANT AND EQUIPMENT | NOTE 8 MINERAL PROPERTY INTERESTS AND PLANT AND EQUIPMENT The definition of proven and probable reserves is set forth in the SEC Industry Guide 7. If proven and probable reserves exist at the Companyās properties, the relevant capitalized mineral property interests and asset retirement costs are charged to expense based on the units of production method upon commencement of production. The Companyās Gold Bar, Black Fox and San JosĆ© properties have proven and probable reserves estimated in accordance with SEC Industry Guide 7. The Company reviews and evaluates its long-lived assets for impairment on a quarterly basis or when events or changes in circumstances indicate that the related carrying amounts may not be recoverable. Once it is determined that impairment exists, an impairment loss is measured as the amount by which the asset carrying value exceeds its estimated fair value. ā Upon completion of the analysis for Q1 2021, the Company did not identify any indicators of impairment. ā |
INVESTMENT IN MINERA SANTA CRUZ
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE | 3 Months Ended |
Mar. 31, 2021 | |
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE | |
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE | NOTE 9 INVESTMENT IN MINERA SANTA CRUZ S.A. (āMSCā) ā SAN JOSĆ MINE The Company accounts for investments over which it exerts significant influence but does not control through majority ownership using the equity method of accounting. In applying the equity method of accounting to the Companyās investment in MSC, MSCās financial statements, which are originally prepared by MSC in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board, have been adjusted to conform with U.S. GAAP. As such, the summarized financial data presented under this heading is in accordance with U.S. GAAP. A summary of the operating results for MSC for the three months ended March 31, 2021 and 2020 is as follows: ā ā ā ā ā ā ā ā ā ā Three months ended March 31, ā 2021 ā 2020 Minera Santa Cruz S.A. ( 100% ) ā ā ā ā ā ā Revenue from gold and silver sales ā $ 53,303 ā $ 37,390 Production costs applicable to sales ā ā (36,367) ā ā (28,316) Depreciation and depletion ā ā (6,953) ā ā (7,327) Gross profit ā ā 9,983 ā ā 1,747 Exploration ā ā (2,236) ā ā (2,866) Other expenses (1) ā ā (5,536) ā ā (2,217) Net income (loss) before tax ā $ 2,211 ā $ (3,336) Current and deferred tax expense ā ā (1,629) ā ā 49 Net income (loss) ā $ 582 ā $ (3,287) ā ā ā ā ā ā ā Portion attributable to McEwen Mining Inc. ( 49% ) ā ā ā ā ā ā Net income (loss) ā $ 285 ā $ (1,611) Amortization of fair value increments ā (1,071) ā (1,385) Income tax recovery ā ā 212 ā ā 320 Loss from investment in MSC, net of amortization ā $ (574) ā $ (2,676) ā (1) Other expenses include foreign exchange, accretion of asset retirement obligations, and other finance related expenses ā The loss from investment in MSC attributable to the Company includes amortization of the fair value increments arising from the initial purchase price allocation and related income tax recovery. The income tax recovery reflects the impact of the devaluation of the Argentine peso against the U.S. dollar on the peso-denominated deferred tax liability recognized at the time of acquisition, as well as income tax rate changes over the periods. ā Changes in the Companyās investment in MSC for the three months ended March 31, 2021 and year ended December 31, 2020 are as follows: ā ā ā ā ā ā ā ā March 31, 2021 December 31, 2020 Investment in MSC, beginning of period $ 108,326 ā $ 110,183 Attributable net income from MSC ā 285 ā ā 2,745 Amortization of fair value increments (1,071) ā (5,390) Income tax recovery ā 212 ā ā 1,128 Dividend distribution received (4,984) ā (340) Investment in MSC, end of period $ 102,768 ā $ 108,326 ā During the three months ended March 31, 2021, the Company received $5.0 million A summary of the key assets and liabilities of MSC on a 100% basis as at March 31, 2021, before and after adjustments to fair value on acquisition and amortization of the fair value increments arising from the purchase price allocation, are as follows: ā ā ā ā ā ā ā ā ā ā ā As at March 31, 2021 ā Balance excluding FV increments ā Adjustments ā Balance including FV increments Current assets ā $ 86,274 ā $ 488 ā $ 86,762 Total assets ā $ 176,082 ā $ 105,603 ā $ 281,685 ā ā ā ā ā ā ā ā ā ā Current liabilities ā $ (39,203) ā $ ā ā $ (39,203) Total liabilities ā $ (68,461) ā $ (3,502) ā $ (71,963) ā |
DEBT
DEBT | 3 Months Ended |
Mar. 31, 2021 | |
DEBT | |
DEBT | NOTE 10 DEBT On August 10, 2018, the Company finalized a $50.0 million senior secured three-year term loan facility with Royal Capital Management Corp., as administrative agent, and the lenders party thereto. Interest on the loan accrued at the rate of 9.75% per annum with interest due monthly and was secured by a lien on certain of the Companyās and its subsidiariesā assets. On June 25, 2020, the Company entered into an Amended and Restated Credit Agreement (āARCAā) which refinanced the outstanding $50 million and which terms differed in material respects from the old loan as follows: ā ā Sprott Private Resource Lending II (Collector), LP replaced Royal Capital Management Corp. as the administrative agent. ā Sprott Private Resource Lending II (Collector), LP replaced certain lenders. An affiliate of Robert McEwen remains as a lender. ā Scheduled repayments of the principal were extended by two years ; monthly repayments of principal in the amount of $2.0 million are now due beginning on August 31, 2022 and continuing for 12 months , followed by a final principal payment of $26.0 million, and any accrued interest on August 31, 2023. ā The minimum working capital maintenance requirement was reduced from $10.0 million under the original term loan to $nil at June 30, 2020 to December 31, 2020 and from $10.0 million to $2.5 million at March 31, 2021 to the end of 2021. The working capital requirement increases to $5.0 million for March 31, 2022, $7.0 million for June 30, 2022, and $10 million for September 30, 2022 and thereafter. ā The Company issued 2,091,700 shares valued at $1,875,000 to the lenders as consideration for the maintenance, continuation, and extension of the maturity date of the loan. The value of the shares plus the unamortized costs of the original term loan will be amortized over the modified term of the loan. The remaining principal terms of the original agreement remain unchanged. The Company was in compliance with the minimum working capital maintenance requirement as at March 31, 2021. A reconciliation of the Companyās long-term debt for the three months ended March 31, 2021 and for the year ended December 31, 2020 is as follows: ā ā ā ā ā ā ā ā ā Three months ended March 31, 2021 Year ended Balance, beginning of year ā $ 48,160 ā $ 49,516 Interest expense ā 1,368 ā 5,394 Interest payments ā (1,202) ā (4,875) Bonus Interest - Equity based financing fee ā ā ā ā ā (1,875) Balance, end of year ā $ 48,326 ā $ 48,160 Less current portion ā ā ā ā ā ā Long-term portion ā $ 48,326 ā $ 48,160 ā |
ASSET RETIREMENT OBLIGATIONS
ASSET RETIREMENT OBLIGATIONS | 3 Months Ended |
Mar. 31, 2021 | |
ASSET RETIREMENT OBLIGATIONS | |
ASSET RETIREMENT OBLIGATIONS | NOTE 11 ASSET RETIREMENT OBLIGATIONS The Company is responsible for the reclamation of certain past and future disturbances at its properties. The most significant properties subject to these obligations are the Gold Bar and Tonkin properties in Nevada, the Timmins properties in Canada and the El Gallo Project in Mexico. A reconciliation of the Companyās asset retirement obligations for the three months ended March 31, 2021 and for the year ended December 31, 2020 are as follows: ā ā ā ā ā ā ā ā March 31, 2021 December 31, 2020 Asset retirement obligation liability, beginning balance $ 34,000 ā $ 32,201 Settlements (80) ā (267) Accretion of liability 487 ā 1,901 Adjustment reflecting updated estimates 425 ā (54) Foreign exchange revaluation ā 152 ā ā 219 Asset retirement obligation liability, ending balance $ 34,984 ā $ 34,000 Less current portion ā 3,817 ā ā 3,232 Long-term portion $ 31,167 ā $ 30,768 ā The Companyās reclamation expenses for the periods presented consisted of the following: ā ā ā ā ā ā ā ā Three months ended March 31, ā 2021 ā 2020 Reclamation adjustment reflecting updated estimates $ 425 ā $ 203 Reclamation accretion ā 486 ā ā 457 Total $ 911 ā ā 660 ā |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 3 Months Ended |
Mar. 31, 2021 | |
SHAREHOLDERS' EQUITY | |
SHAREHOLDERS' EQUITY | NOTE 12 SHAREHOLDERSā EQUITY Equity Issuances Equity Financing On February 9, 2021, the Company completed a registered direct offering of common stock with several existing and new institutional investors and issued 30,000,000 shares priced at $1.05 per share for gross proceeds of $31.5 million. The purpose of this financing was to fund the continued development of the Froome deposit, which is part of the Fox Complex in Timmins, Ontario, and to strengthen the Companyās balance sheet and working capital position. Total issuance costs amounted to $1.7 million for net proceeds of $29.9 million. Flow-Through Shares Issuance ā Canadian Development Expenses (āCDEā) On January 29, 2021, the Company issued 12,600,600 flow-through common shares priced at $1.01 per share for gross proceeds of $12.7 million. The purpose of this offering was also to fund the development of the Froome deposit. The total proceeds were allocated between the sale of tax benefits and the sale of common shares. The total issuance costs related to the issuance of the flow-through shares was $0.7 million, which are accounted for as a reduction to the common shares. The net proceeds of $12.0 million were allocated between the sale of tax benefits in the amount of $1.2 million and the sale of common shares in the amount of $10.8 million. The Company is required to spend flow-through share proceeds on flow-through eligible CDE as defined by subsection 66.2(5) of the Income Tax Act (Canada). As of March 31, 2021, the Company has incurred a total of $7.9 million in eligible CDE. The Company expects to fulfill its CDE commitments by the end of 2022. Flow-Through Shares Issuance ā Canadian Exploration Expenditures (āCEEā) On December 31, 2020, the Company issued an additional 7,669,900 flow-through common shares priced at $1.28 per share for gross proceeds of $9.8 million. The purpose of this offering was to fund exploration activities on the Companyās properties in the Timmins region of Canada. No issuance costs were incurred as part of this issuance. Proceeds of $9.8 million were allocated between the sale of tax benefits in the amount of $2.1 million and the sale of common shares in the amount of $7.7 million. On September 10, 2020, the Company issued 6,298,166 flow-through common shares priced at $1.65 per share for gross proceeds of $10.4 million. The purpose of this offering was to fund exploration activities on the Companyās properties in the Timmins region of Canada. The total issuance costs related to the issuance of the flow-through shares was $0.6 million, which are accounted for as a reduction to the common shares. The net proceeds of $9.8 million were allocated between the sale of tax benefits in the amount of $2.0 million and the sale of common shares in the amount of $7.8 million. The Company is required to spend flow-through share proceeds on flow-through eligible CEE as defined by subsection 66.1(6) of the Income Tax Act (Canada) . As of March 31, 2021, the Company has incurred a total of $4.3 million in eligible CEE. June 2020 Amended and Restated Credit Agreement Pursuant to the ARCA executed on June 25, 2020, the Company issued 2,091,700 shares of common stock during Q2 2020 to the lenders as consideration for the maintenance, continuation, and extension of the maturity date of the loan. The Company valued the shares at $1.9 million. November 2019 Offering On November 20, 2019 (the āNovember Offeringā), the Company issued 37,750,000 Units at $1.325 per Unit, for net proceeds of $46.6 million (net of issuance costs of $3.5 million). Each Unit consisted of one share of common stock and one The Company concluded that both common stock and warrants are equity-linked financial instruments and should be accounted for permanently in the shareholdersā equity section in the Consolidated Balance Sheets, with no requirement to subsequently revalue any of the instruments. Of the net proceeds of $46.6 million, $37.3 million was allocated to common stock and $9.3 million was allocated to warrants, based on their relative fair values at issuance. The Company used the Black-Scholes pricing model to determine the fair value of warrants issued in connection with the November Offering using the following assumptions: ā ā ā ā ā ā ā ā ā ā ā ā ā ā November 20, 2019 ā Risk-free interest rate ā ā ā ā ā 1.55 % Dividend yield ā ā ā ā ā 0.00 % Volatility factor of the expected market price of common stock ā ā ā ā ā 60 % Weighted-average expected life ā ā ā ā ā 5 years ā Weighted-average grant date fair value ā ā ā ā $ 0.52 ā ā All 21,706,250 warrants issued under the November Offering remain outstanding and unexercised as at March 31, 2021. March 2019 Registered Offering On March 29, 2019, the Company issued 14,193,548 Units at $1.55 per Unit, for net proceeds of $20.3 million (net of issuance costs of $1.7 million). Each Unit consisted of one share of common stock and one On March 29, 2019, the Company also issued 1,935,484 Subscription Receipts at $1.55 per Subscription Receipt to certain executive officers, directors, employees and consultants. Upon shareholder and NYSE approval on May 23, 2019, the Subscription Receipts were converted into 1,935,484 Units for net proceeds of $2.6 million (net of issuance costs of $0.4 million). All Units issued under the offering have identical terms. All 8,064,516 warrants issued under the March 2019 registered offering remain outstanding and unexercised as at March 31, 2021. Stock Options The Companyās Amended and Restated Equity Incentive Plan (āPlanā) allows for equity awards to be granted to employees, consultants, advisors, and directors. The Plan is administered by the Compensation Committee of the Board of Directors (āCommitteeā), which determines the terms pursuant to which any award is granted. The Committee may delegate to certain officers the authority to grant awards to certain employees (other than such officers), consultants and advisors. The number of shares of common stock reserved for issuance thereunder is 17.5 million shares, including shares issued under the Plan before it was amended, with no more than 0.5 million shares subject to grants of options to an individual in a calendar year. The Plan provides for the grant of incentive options under Section 422 of the Internal Revenue Code (the āCodeā), which provide potential tax benefits to the recipients compared to non-qualified options. At March 31, 2021, 3,200,483 awards were authorized and available for issuance under the Plan (March 31, 2020 ā 4,963,516 awards). No stock options were exercised during the three months ended March 31, 2021. During the same period in 2020 Shareholdersā Distributions Pursuant to the ARCA ( Note 10 |
NET LOSS PER SHARE
NET LOSS PER SHARE | 3 Months Ended |
Mar. 31, 2021 | |
NET LOSS PER SHARE | |
NET LOSS PER SHARE | NOTE 13 NET LOSS PER SHARE Basic net loss per share is computed by dividing the net loss attributable to common shareholders by the weighted average number of common shares outstanding during the period. Potentially dilutive instruments are not included in the calculation of diluted net loss per share for the three months ended March 31, 2021 and 2020, as they would be anti-dilutive. For the three months ended March 31, 2021, all of the outstanding options (6,118,817) and all of the outstanding warrants (29,770,766) were excluded from the computation of diluted loss per share (March 31, 2020 ā 4,430,784 outstanding options and 29,770,766 outstanding warrants). ā |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2021 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | NOTE 14 RELATED PARTY TRANSACTIONS The Company recorded the following expense in respect to the related parties outlined below during the periods presented: ā ā ā ā ā ā ā Three months ended March 31, ā 2021 2020 Lexam L.P. $ 11 ā $ 76 REVlaw ā 35 ā ā 38 The Company has the following outstanding accounts payable balances in respect to the related parties outlined below: ā ā ā ā ā ā ā March 31, 2021 ā December 31, 2020 Lexam L.P. $ 64 ā $ 72 REVlaw ā 194 ā ā 90 ā An aircraft owned by Lexam L.P. (controlled by Robert R. McEwen, limited partner and beneficiary of Lexam L.P. and the Companyās Chairman and Chief Executive Officer) has been made available to the Company to expedite business travel. As Chairman and Chief Executive Officer of the Company, Mr. McEwen must travel extensively and frequently on short notice. Mr. McEwen is able to charter the aircraft from Lexam L.P. at a preferential rate approved by the Companyās independent board members under a policy whereby only the variable expenses of operating this aircraft for business related travel are eligible for reimbursement by the Company. ā REVlaw is a company owned by Ms. Carmen Diges, General Counsel of the Company. The legal services of Ms. Diges as General Counsel and other support staff, as needed, are provided by REVlaw in the normal course of business and have been recorded at their exchange amount. An affiliate of Mr. McEwen participated as a lender in the $50.0 million term loan by providing $25.0 million of the total $50.0 million funding and continued as such under the ARCA. During the three months ended March 31, 2021, the Company paid $0.6 million (three months ended March 31, 2020 ā $0.6 million) in interest to this affiliate. Note 10 |
FAIR VALUE ACCOUNTING
FAIR VALUE ACCOUNTING | 3 Months Ended |
Mar. 31, 2021 | |
FAIR VALUE ACCOUNTING | |
FAIR VALUE ACCOUNTING | NOTE 15 FAIR VALUE ACCOUNTING 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. Assets and liabilities measured at fair value on a recurring basis. At year-end December 31, 2020, the Company no longer held any marketable securities. The fair value of financial assets and liabilities held at March 31, 2021 were assumed to approximate their carrying values due to their historically negligible credit losses. Debt is recorded at a carrying value of $48.3 million (December 31, 2020 ā $48.2 million). The debt is not traded on quoted markets and approximates its fair value based on recent refinancing. Impairment of Mineral Property During the three months ended March 31, 2021, there were no indicators of impairment for the Companyās long-lived assets and the Company did not record any impairments. During the three months ended March 31, 2020, the Company recorded an impairment of long-lived assets at the Gold Bar mine totaling $83.8 million using Level 3 inputs. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2021 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | NOTE 16 COMMITMENTS AND CONTINGENCIES In addition to the commitments for payments on operating and finance leases and the repayment of long-term debt ( Note 10 Reclamation Obligations As part of its ongoing business and operations, the Company is required to provide bonding for its environmental reclamation obligations of $20.1 million in Nevada pertaining primarily to the Tonkin and the Gold Bar properties and $11.9 million (C$14.9 million) in Canada with respect to the Black Fox Complex. In addition, under Canadian regulations, the Company was required to deposit approximately $0.1 million with respect to its Lexam properties in Timmins, which is recorded as non-current restricted cash ( Note 17) Surety Bonds As at March 31, 2021, the Company had a surety facility in place to cover all its bonding obligations, which include $20.1 million of bonding in Nevada and $11.9 million (C$14.9 million) of bonding in Canada. The terms of the facility carry an average annual financing fee of 2.3% and require a deposit of 11%. The surety bonds are available for draw-down by the beneficiary in the event the Company does not perform its reclamation obligations. If the specific reclamation requirements are met, the beneficiary of the surety bonds will release 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, 2021, the Company held $3.6 million in restricted cash as a deposit against the surety facility. Streaming Agreement As part of the acquisition of the Black Fox Complex in 2017, the Company assumed a gold purchase agreement (streaming contract) related to production from certain land claims. The Company is obligated to sell 8% of gold production from the Black Fox mine and 6.3% from the adjoining Pike River property (Black Fox extension) to Sandstorm Gold Ltd. at the lesser of market price or $561 per ounce (with inflation adjustments of up to 2% per year) until 2090. The Company records the revenue from these shipments based on the contract price at the time of delivery to the customer. During the three months ended March 31, 2021, the Company recorded revenue of $0.3 million, (for the three months ended March 31, 2020 ā $0.5 million) related to the gold stream sales. ā Flow-through Eligible Expenses In January 2021, the Company closed a flow-through share issuance to fund the development at the Froome deposit. The total proceeds of $12.7 million will be used to incur qualifying CDE through the year 2022. In Q1 2021, the Company incurred $7.9 million of the required CDE. In 2020, the Company completed two flow-through share issuances. The total proceeds of $18.3 million will be used to incur qualifying CEE in the Timmins region of Ontario through 2022. Through March 31, 2021, the Company has incurred $4.3 million of the required CEE spend ($1.9 million in 2020). ā |
CASH AND CASH EQUIVALENTS AND R
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | 3 Months Ended |
Mar. 31, 2021 | |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | NOTE 17 CASH, CASH EQUIVALENTS AND RESTRICTED CASH The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported in the Consolidated Balance Sheets Consolidated Statements of Cash flows ā ā ā ā ā ā ā ā ā ā March 31, 2021 ā December 31, 2020 Cash and cash equivalents ā $ 47,402 ā $ 20,843 Restricted cash - non-current ā ā 3,625 ā ā 3,595 Total cash, cash equivalents, and restricted cash ā $ 51,027 ā $ 24,438 ā Restricted cash includes deposits related to our reclamation obligations and surety facility (Note 16). |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES. | |
COVID-19 | COVID-19 The Company continues to closely monitor and respond, as possible, to the ongoing COVID-19 pandemic. As the situation continues to rapidly change globally, ensuring the health and safety of the Companyās employees and contractors is one of the Companyās top priorities. Many jurisdictions including the United States, Canada, Mexico, and Argentina have varied but continued restrictions to travel, public gatherings, and certain business operations. Unlike the year 2020, there were no government-mandated shutdowns or other legally required temporary suspensions of the Companyās operations during Q1 2021. The long-term impact of the COVID-19 pandemic on the Companyās results of operations, financial position and cash flows will depend on future developments, including the duration and spread of the outbreak, variants of the COVID-19 virus, the availability and distribution of vaccinations, and government advisories, restrictions, and financial assistance offered. To ensure a safe working environment for the Companyās employees and contractors, and to prevent the spread of COVID-19, the Company continues to reinforce safety measures at all sites and offices including contact tracing, restricting non-essential travel, and complying with public health orders. The impact of COVID-19 on the global financial markets, the overall economy and the Company are highly uncertain and cannot be predicted. Achieving and maintaining normal operating capacity is also dependent on the continued availability of supplies and contractors, which are out of the Companyās control. If the financial markets and/or the overall economy continue to be impacted, the Companyās results of operations, financial position and cash flows may be further affected. As the situation continues to evolve, the Company will continue to monitor market conditions closely and respond accordingly. Throughout COVID-19, the Company has raised $12.7 million and $31.5 million through a Canadian Development Expenses (āCDEā) flow-through common share issuance and an equity financing respectively during Q1 2021, and raised $20.2 million in Canadian Exploration Expenditures (āCEEā) financings during 2020. A severe prolonged economic downturn could result in a variety of risks to the business, including access to capital markets when needed on acceptable terms, if at all. The Company has completed various scenario planning analyses to consider the potential impacts of COVID-19 on its business, including volatility in commodity prices, temporary disruptions and/or curtailments of operating activities (voluntary or involuntary). |
El Gallo Project Blockade | El Gallo Project Blockade On March 15, 2021, the Company reported an illegal blockade at the main access point to the Companyās El Gallo project in Mexico. Certain individuals involved in the blockade believed that the annual payments and infrastructure improvements made to the local communities should increase significantly. The Company has operated harmoniously with local communities since mining began in 2012, and has had a long standing track record of supporting local communities. On March 29, 2021, after operations were briefly disrupted, the Company reported the successful resolution of the concerns raised by the local community members. A 10-year |
Recently Adopted Accounting Pronouncements | ā Recently Adopted Accounting Pronouncements Income Taxes: |
OPERATING SEGMENT REPORTING (Ta
OPERATING SEGMENT REPORTING (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
OPERATING SEGMENT REPORTING | |
Schedule of significant information relating to reportable operating segments | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three months ended March 31, 2021 USA ā Canada ā Mexico ā MSC Los Azules Total Revenue from gold and silver sales ā $ 12,893 ā $ 8,561 ā $ 2,286 ā $ ā ā $ ā ā $ 23,740 Production costs applicable to sales ā ā (13,557) ā ā (6,656) ā ā (3,376) ā ā ā ā $ ā ā (23,589) Depreciation and depletion ā ā (1,741) ā ā (3,395) ā ā (1) ā ā ā ā $ ā ā ā (5,137) Gross (loss) ā ā (2,405) ā ā (1,490) ā ā (1,091) ā ā ā ā ā ā ā ā (4,986) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Advanced projects ā ā (84) ā ā (623) ā ā (1,092) ā ā ā ā $ ā ā (1,799) Exploration ā ā (864) ā ā (3,434) ā ā (8) ā ā ā ā $ (650) ā (4,956) Impairment of mineral property interests and plant and equipment (Note 8) ā ā ā ā ā ā ā ā ā ā ā ā ā $ ā ā ā ā Loss from investment in Minera Santa Cruz S.A. ā ā ā ā ā ā ā ā ā ā ā (574) ā $ ā ā (574) Segment loss ā $ (3,353) ā $ (5,547) ā $ (2,191) ā $ (574) ā $ (650) ā $ (12,315) General and Administrative and other ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (2,166) Loss before income and mining taxes ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā $ (14,481) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Capital expenditures ā $ 757 ā $ 9,567 ā $ ā ā $ ā ā $ ā ā $ 10,324 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three months ended March 31, 2020 USA Canada Mexico MSC Los Azules Total Revenue from gold and silver sales ā $ 14,317 ā $ 12,739 ā $ 4,344 ā $ ā ā $ ā ā $ 31,400 Production costs applicable to sales ā ā (17,032) ā ā (7,207) ā ā (4,148) ā ā ā ā ā ā ā ā (28,387) Depreciation and depletion ā ā (3,862) ā ā (2,748) ā ā (88) ā ā ā ā ā ā ā ā (6,698) Gross (loss) profit ā ā (6,577) ā ā 2,784 ā ā 108 ā ā ā ā ā ā ā ā (3,685) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Advanced projects ā ā (366) ā ā (1,066) ā ā (1,118) ā ā ā ā ā ā ā ā (2,550) Exploration ā ā (809) ā ā (2,405) ā ā ā ā ā ā ā ā (576) ā ā (3,790) Impairment of mineral property interests and plant and equipment (Note 8) ā ā (83,805) ā ā ā ā ā ā ā ā ā ā ā ā ā ā (83,805) Loss from investment in Minera Santa Cruz S.A. ā ā ā ā ā ā ā ā ā ā ā (2,676) ā ā ā ā ā (2,676) Segment loss ā $ (91,557) ā $ (687) ā $ (1,010) ā $ (2,676) ā $ (576) ā $ (96,506) General and Administrative and other ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (3,779) Loss before income and mining taxes ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā $ (100,285) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Capital expenditures ā $ 1,807 ā $ 3,729 ā $ ā ā $ ā ā $ ā ā $ 5,536 |
Schedule of geographic information | Geographic information Geographic information includes the long-lived assets balance and revenues presented for the Companyās operating segments, as follows: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Long-lived Assets ā Revenue (1) ā ā March 31, ā December 31, ā Three months ended March 31, ā 2021 2020 2021 ā 2020 USA ā $ 46,280 ā $ 46,801 ā $ 12,893 ā $ 14,317 Canada ā ā 85,811 ā ā 78,986 ā ā 8,561 ā ā 12,739 Mexico ā ā 20,018 ā ā 20,021 ā ā 2,286 ā ā 4,344 Argentina (2) ā ā 294,259 ā ā 299,816 ā ā ā ā ā ā Total consolidated (3) ā $ 446,368 ā $ 445,624 ā $ 23,740 ā $ 31,400 (1) Presented based on the location from which the product originated. (2) Includes Investment in MSC of $102.8 million as of March 31, 2021 (December 31, 2020 ā $108.3 million). (3) Total excludes $0.8 million related to the Company's ROU office lease asset as the business activities related to corporate are not considered to be a part of the operating segments . |
OTHER INCOME (Tables)
OTHER INCOME (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
OTHER INCOME | |
Schedule of other income (expense) | ā ā ā ā ā ā ā ā Three months ended March 31, ā 2021 2020 COVID-19 Relief $ 1,111 ā $ ā Unrealized and realized (loss) on investments (Note 5) ā ā ā ā (898) Foreign currency (loss) gain ā 291 ā ā 1,808 Other income, net ā 10 ā ā 27 Total other income $ 1,412 ā $ 937 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
INVESTMENTS | |
Summary of investment portfolio | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā As at ā Additions/ ā ā ā Disposals/ ā Unrealized ā Fair value ā ā December 31, ā transfers during ā Net (loss) on ā transfers during ā (loss) on ā March 31, ā 2020 period securities sold year securities held 2021 Marketable equity securities ā $ ā ā $ ā ā $ ā ā $ ā ā $ ā ā $ ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā As at ā Additions/ ā Net gain ā Disposals/ ā Unrealized ā Fair value ā ā December 31, ā transfers during ā (loss) on ā transfers during ā (loss) on ā March 31, ā 2019 period securities sold ā year ā securities held ā 2020 Marketable equity securities ā $ 1,885 ā $ ā ā $ (16) ā $ (112) ā $ (882) ā $ 875 |
RECEIVABLES, PREPAIDS AND OTH_2
RECEIVABLES, PREPAIDS AND OTHER ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
RECEIVABLES, PREPAIDS AND OTHER ASSETS | |
Schedule of balances in receivables and other current assets | ā ā ā ā ā ā ā ā ā March 31, 2021 December 31, 2020 Government sales tax receivable ā $ 1,502 ā $ 1,810 Prepaids and other assets ā ā 4,198 ā ā 3,880 Receivables and other current assets ā $ 5,700 ā $ 5,690 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
INVENTORIES | |
Schedule of inventories | ā ā ā ā ā ā ā ā ā March 31, 2021 December 31, 2020 Material on leach pads ā $ 21,200 ā $ 21,003 In-process inventory ā 3,377 ā 3,922 Stockpiles ā 2,537 ā 635 Precious metals ā 1,560 ā 1,344 Materials and supplies ā 4,235 ā 4,845 Inventories ā $ 32,909 ā $ 31,749 Less current portion ā ā 27,910 ā ā 26,964 Long-term portion ā $ 4,999 ā $ 4,785 |
INVESTMENT IN MINERA SANTA CR_2
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE | |
Summary of MSC's financial information from operations | ā ā ā ā ā ā ā ā ā ā Three months ended March 31, ā 2021 ā 2020 Minera Santa Cruz S.A. ( 100% ) ā ā ā ā ā ā Revenue from gold and silver sales ā $ 53,303 ā $ 37,390 Production costs applicable to sales ā ā (36,367) ā ā (28,316) Depreciation and depletion ā ā (6,953) ā ā (7,327) Gross profit ā ā 9,983 ā ā 1,747 Exploration ā ā (2,236) ā ā (2,866) Other expenses (1) ā ā (5,536) ā ā (2,217) Net income (loss) before tax ā $ 2,211 ā $ (3,336) Current and deferred tax expense ā ā (1,629) ā ā 49 Net income (loss) ā $ 582 ā $ (3,287) ā ā ā ā ā ā ā Portion attributable to McEwen Mining Inc. ( 49% ) ā ā ā ā ā ā Net income (loss) ā $ 285 ā $ (1,611) Amortization of fair value increments ā (1,071) ā (1,385) Income tax recovery ā ā 212 ā ā 320 Loss from investment in MSC, net of amortization ā $ (574) ā $ (2,676) |
Schedule of change in the entity's investment in MSC | ā ā ā ā ā ā ā ā March 31, 2021 December 31, 2020 Investment in MSC, beginning of period $ 108,326 ā $ 110,183 Attributable net income from MSC ā 285 ā ā 2,745 Amortization of fair value increments (1,071) ā (5,390) Income tax recovery ā 212 ā ā 1,128 Dividend distribution received (4,984) ā (340) Investment in MSC, end of period $ 102,768 ā $ 108,326 |
Summary of key assets and liabilities, before and after adjustments to fair value | ā ā ā ā ā ā ā ā ā ā ā As at March 31, 2021 ā Balance excluding FV increments ā Adjustments ā Balance including FV increments Current assets ā $ 86,274 ā $ 488 ā $ 86,762 Total assets ā $ 176,082 ā $ 105,603 ā $ 281,685 ā ā ā ā ā ā ā ā ā ā Current liabilities ā $ (39,203) ā $ ā ā $ (39,203) Total liabilities ā $ (68,461) ā $ (3,502) ā $ (71,963) |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
DEBT | |
Schedule of debt activity | ā ā ā ā ā ā ā ā ā Three months ended March 31, 2021 Year ended Balance, beginning of year ā $ 48,160 ā $ 49,516 Interest expense ā 1,368 ā 5,394 Interest payments ā (1,202) ā (4,875) Bonus Interest - Equity based financing fee ā ā ā ā ā (1,875) Balance, end of year ā $ 48,326 ā $ 48,160 Less current portion ā ā ā ā ā ā Long-term portion ā $ 48,326 ā $ 48,160 |
ASSET RETIREMENT OBLIGATIONS (T
ASSET RETIREMENT OBLIGATIONS (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
ASSET RETIREMENT OBLIGATIONS | |
Schedule of reconciliation of asset retirement obligations | ā ā ā ā ā ā ā ā March 31, 2021 December 31, 2020 Asset retirement obligation liability, beginning balance $ 34,000 ā $ 32,201 Settlements (80) ā (267) Accretion of liability 487 ā 1,901 Adjustment reflecting updated estimates 425 ā (54) Foreign exchange revaluation ā 152 ā ā 219 Asset retirement obligation liability, ending balance $ 34,984 ā $ 34,000 Less current portion ā 3,817 ā ā 3,232 Long-term portion $ 31,167 ā $ 30,768 |
Schedule of reclamation expense | The Companyās reclamation expenses for the periods presented consisted of the following: ā ā ā ā ā ā ā ā Three months ended March 31, ā 2021 ā 2020 Reclamation adjustment reflecting updated estimates $ 425 ā $ 203 Reclamation accretion ā 486 ā ā 457 Total $ 911 ā ā 660 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
November 2019 Offering | |
Schedule of Black-Scholes pricing model to determine the fair value of warrants | ā ā ā ā ā ā ā ā ā ā ā ā ā ā November 20, 2019 ā Risk-free interest rate ā ā ā ā ā 1.55 % Dividend yield ā ā ā ā ā 0.00 % Volatility factor of the expected market price of common stock ā ā ā ā ā 60 % Weighted-average expected life ā ā ā ā ā 5 years ā Weighted-average grant date fair value ā ā ā ā $ 0.52 ā |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
RELATED PARTY TRANSACTIONS | |
Schedule of related party expense and outstanding accounts payable | The Company recorded the following expense in respect to the related parties outlined below during the periods presented: ā ā ā ā ā ā ā Three months ended March 31, ā 2021 2020 Lexam L.P. $ 11 ā $ 76 REVlaw ā 35 ā ā 38 The Company has the following outstanding accounts payable balances in respect to the related parties outlined below: ā ā ā ā ā ā ā March 31, 2021 ā December 31, 2020 Lexam L.P. $ 64 ā $ 72 REVlaw ā 194 ā ā 90 |
CASH AND CASH EQUIVALENTS AND_2
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | |
Schedule of reconciliation of cash and cash equivalents, and restricted cash | ā ā ā ā ā ā ā ā ā ā March 31, 2021 ā December 31, 2020 Cash and cash equivalents ā $ 47,402 ā $ 20,843 Restricted cash - non-current ā ā 3,625 ā ā 3,595 Total cash, cash equivalents, and restricted cash ā $ 51,027 ā $ 24,438 |
NATURE OF OPERATIONS AND BASI_2
NATURE OF OPERATIONS AND BASIS OF PRESENTATION (Details) | 3 Months Ended |
Mar. 31, 2021 | |
Ownership interests in various mines | 100.00% |
Ownership interest (as a percent) | 49.00% |
MSC | Equity Method Investment | |
Ownership interest (as a percent) | 49.00% |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Risks and Uncertainties (Details) - USD ($) $ in Millions | Mar. 29, 2021 | Feb. 09, 2021 | Jan. 29, 2021 | Dec. 31, 2020 | Sep. 10, 2020 | Mar. 31, 2021 |
Duration of agreement reached to provide additional support to communities and greater long-term certainty for El Gallo project | 10 years | |||||
Equity Financing In February 2021 | ||||||
Gross proceeds | $ 31.5 | |||||
Canadian Development Expenses | Flow Through Common Shares | ||||||
Gross proceeds | $ 12.7 | |||||
Canadian Exploration Expenditures | ||||||
Gross proceeds | $ 20.2 | |||||
Canadian Exploration Expenditures | Flow Through Common Shares | ||||||
Gross proceeds | $ 9.8 | $ 10.4 |
OPERATING SEGMENT REPORTING - S
OPERATING SEGMENT REPORTING - Summary of Reportable Operating Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Operating Segment Reporting | ||
Revenue from gold and silver sales | $ 23,740 | $ 31,400 |
Depreciation and depletion | (5,137) | (6,698) |
Gross (loss) profit | (4,986) | (3,685) |
Advanced projects | (1,799) | (2,550) |
Impairment of mineral property interests and plant and equipment (Note 8) | (83,805) | |
Loss from investment in Minera Santa Cruz S.A. | (574) | (2,676) |
Segment loss | (12,315) | (96,506) |
General and Administrative and other | (2,166) | (3,779) |
Loss before income and mining taxes | (14,481) | (100,285) |
Capital expenditures | 10,324 | 5,536 |
USA | ||
Operating Segment Reporting | ||
Depreciation and depletion | (1,741) | (3,862) |
Gross (loss) profit | (2,405) | (6,577) |
Advanced projects | (84) | (366) |
Impairment of mineral property interests and plant and equipment (Note 8) | (83,805) | |
Segment loss | (3,353) | (91,557) |
Capital expenditures | 757 | 1,807 |
Canada | ||
Operating Segment Reporting | ||
Depreciation and depletion | (3,395) | (2,748) |
Gross (loss) profit | (1,490) | 2,784 |
Advanced projects | (623) | (1,066) |
Segment loss | (5,547) | (687) |
Capital expenditures | 9,567 | 3,729 |
Mexico | ||
Operating Segment Reporting | ||
Depreciation and depletion | (1) | (88) |
Gross (loss) profit | (1,091) | 108 |
Advanced projects | (1,092) | (1,118) |
Segment loss | (2,191) | (1,010) |
MSC | ||
Operating Segment Reporting | ||
Loss from investment in Minera Santa Cruz S.A. | (574) | (2,676) |
Segment loss | (574) | (2,676) |
Los Azules | ||
Operating Segment Reporting | ||
Segment loss | (650) | (576) |
Gold and silver sales | ||
Operating Segment Reporting | ||
Revenue from gold and silver sales | 23,740 | 31,400 |
Gold and silver sales | USA | ||
Operating Segment Reporting | ||
Revenue from gold and silver sales | 12,893 | 14,317 |
Gold and silver sales | Canada | ||
Operating Segment Reporting | ||
Revenue from gold and silver sales | 8,561 | 12,739 |
Gold and silver sales | Mexico | ||
Operating Segment Reporting | ||
Revenue from gold and silver sales | 2,286 | 4,344 |
Production costs applicable to sales | ||
Operating Segment Reporting | ||
Production costs applicable to sales | (23,589) | (28,387) |
Production costs applicable to sales | USA | ||
Operating Segment Reporting | ||
Production costs applicable to sales | (13,557) | (17,032) |
Production costs applicable to sales | Canada | ||
Operating Segment Reporting | ||
Production costs applicable to sales | (6,656) | (7,207) |
Production costs applicable to sales | Mexico | ||
Operating Segment Reporting | ||
Production costs applicable to sales | (3,376) | (4,148) |
Exploration | ||
Operating Segment Reporting | ||
Production costs applicable to sales | (4,956) | (3,790) |
Exploration | USA | ||
Operating Segment Reporting | ||
Production costs applicable to sales | (864) | (809) |
Exploration | Canada | ||
Operating Segment Reporting | ||
Production costs applicable to sales | (3,434) | (2,405) |
Exploration | Mexico | ||
Operating Segment Reporting | ||
Production costs applicable to sales | (8) | |
Exploration | Los Azules | ||
Operating Segment Reporting | ||
Production costs applicable to sales | $ (650) | $ (576) |
OPERATING SEGMENT REPORTING - G
OPERATING SEGMENT REPORTING - Geographic information (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating Segment Reporting | ||||
Long-lived Assets | $ 446,368 | $ 445,624 | ||
Revenue | 23,740 | $ 31,400 | ||
Investment in MSC | 102,768 | 108,326 | ||
Lease assets | 800 | |||
MSC | ||||
Operating Segment Reporting | ||||
Revenue | 53,303 | 37,390 | ||
Investment in MSC | 102,768 | 108,326 | $ 110,183 | |
USA | ||||
Operating Segment Reporting | ||||
Long-lived Assets | 46,280 | 46,801 | ||
Revenue | 12,893 | 14,317 | ||
Canada | ||||
Operating Segment Reporting | ||||
Long-lived Assets | 85,811 | 78,986 | ||
Revenue | 8,561 | 12,739 | ||
Mexico | ||||
Operating Segment Reporting | ||||
Long-lived Assets | 20,018 | 20,021 | ||
Revenue | 2,286 | $ 4,344 | ||
Argentina | ||||
Operating Segment Reporting | ||||
Long-lived Assets | 294,259 | 299,816 | ||
Argentina | MSC | ||||
Operating Segment Reporting | ||||
Investment in MSC | $ 102,800 | $ 108,300 |
OTHER INCOME - Summary of Other
OTHER INCOME - Summary of Other Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
OTHER INCOME | ||
COVID-19 Relief | $ 1,111 | |
Unrealized and realized (loss) on investments (Note 5) | $ (898) | |
Foreign currency (loss) gain | 291 | 1,808 |
Other income, net | 10 | 27 |
Total other income | $ 1,412 | $ 937 |
OTHER INCOME (Details)
OTHER INCOME (Details) $ in Millions | Mar. 31, 2021USD ($) |
Canadian Emergency Wage Subsidy | |
Other Income | |
Amount of relief secured | $ 1.1 |
INVESTMENTS - Activity in Inves
INVESTMENTS - Activity in Investments (Details) - Marketable equity securities $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Investments rollforward | |
Opening balance | $ 1,885 |
Net gain (loss) on securities sold | (16) |
Disposals/transfers during period | (112) |
Unrealized (loss) on securities held | (882) |
Fair Value end of the period | $ 875 |
INVESTMENTS - (Details)
INVESTMENTS - (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Investments rollforward | |
Proceeds from sale of investments | $ 112 |
Marketable equity securities | |
Investments rollforward | |
Proceeds from sale of investments | $ 100 |
RECEIVABLES, PREPAIDS AND OTH_3
RECEIVABLES, PREPAIDS AND OTHER ASSETS (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Receivables, prepaids and other assets | |||
Government sales tax receivable | $ 1,502 | $ 1,810 | |
Prepaids and other assets | 4,198 | 3,880 | |
Receivables and other current assets | 5,700 | 5,690 | |
VAT collected | 600 | $ 400 | |
Mexican Tax Authority | |||
Receivables, prepaids and other assets | |||
Government sales tax receivable | $ 700 | $ 900 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Inventories | |||
Material on leach pads | $ 21,200 | $ 21,003 | |
In-process inventory | 3,377 | 3,922 | |
Stockpiles | 2,537 | 635 | |
Precious metals | 1,560 | 1,344 | |
Materials and supplies | 4,235 | 4,845 | |
Inventories | 32,909 | 31,749 | |
Less current portion | 27,910 | 26,964 | |
Long-term portion | 4,999 | $ 4,785 | |
Production costs applicable to sales | |||
Inventories | |||
Inventory write-down | 2,100 | $ 1,000 | |
Depreciation and depletion | |||
Inventories | |||
Inventory write-down | 100 | 200 | |
Gold Bar mine | |||
Inventories | |||
Inventory write-down | 1,400 | $ 1,200 | |
El Gallo Project | |||
Inventories | |||
Inventory write-down | $ 800 |
INVESTMENT IN MINERA SANTA CR_3
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE - Summary of Operating Results from MSC (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE | |||
Revenue from gold and silver sales | $ 23,740 | $ 31,400 | |
Depreciation and depletion | (5,137) | (6,698) | |
Gross Profit | (4,986) | (3,685) | |
Net income (loss) before tax | (14,481) | (100,285) | |
Net income (loss) | (12,466) | (99,191) | |
Income tax recovery | 2,015 | 1,094 | |
Loss from investment in MSC, net of amortization | $ (574) | (2,676) | |
Subsidiary (as a percent) | 100.00% | ||
Ownership interest (as a percent) | 49.00% | ||
MSC | |||
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE | |||
Revenue from gold and silver sales | $ 53,303 | 37,390 | |
Production costs applicable to sales | (36,367) | (28,316) | |
Depreciation and depletion | (6,953) | (7,327) | |
Gross Profit | 9,983 | 1,747 | |
Exploration | (2,236) | (2,866) | |
Other expenses | (5,536) | (2,217) | |
Net income (loss) before tax | 2,211 | (3,336) | |
Current and deferred tax expense | (1,629) | 49 | |
Net income (loss) | 582 | (3,287) | |
Net income (loss) | 285 | $ 2,745 | |
Amortization of fair value increments | (1,071) | (5,390) | |
Income tax recovery | 212 | $ 1,128 | |
Loss from investment in MSC, net of amortization | (574) | (2,676) | |
MSC | Equity Method Investment | |||
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE | |||
Net income (loss) | 285 | (1,611) | |
Amortization of fair value increments | (1,071) | (1,385) | |
Income tax recovery | $ 212 | $ 320 | |
Ownership interest (as a percent) | 49.00% |
INVESTMENT IN MINERA SANTA CR_4
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE - Changes in Company's Investment in MSC (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Change in the investment in MSC | |||
Investment in MSC, beginning of period | $ 108,326 | ||
Income tax recovery | 2,015 | $ 1,094 | |
Dividend distribution received | (4,984) | ||
Investment in MSC, end of period | 102,768 | $ 108,326 | |
MSC | |||
Change in the investment in MSC | |||
Investment in MSC, beginning of period | 108,326 | $ 110,183 | 110,183 |
Attributable net income from MSC | 285 | 2,745 | |
Amortization of fair value increments | (1,071) | (5,390) | |
Income tax recovery | 212 | 1,128 | |
Dividend distribution received | (4,984) | (340) | |
Investment in MSC, end of period | 102,768 | $ 108,326 | |
Proceeds from Dividends Received | $ 5,000 |
INVESTMENT IN MINERA SANTA CR_5
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE - Assets and Liabilities Associated with MSC (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE | ||
Current assets | $ 81,012 | $ 53,497 |
Total assets | 528,180 | 499,936 |
Current liabilities | (45,733) | (45,554) |
Total liabilities | (134,431) | $ (134,608) |
Balance excluding FV increments | MSC | ||
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE | ||
Current assets | 86,274 | |
Total assets | 176,082 | |
Current liabilities | (39,203) | |
Total liabilities | (68,461) | |
Adjustments | MSC | ||
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE | ||
Current assets | 488 | |
Total assets | 105,603 | |
Total liabilities | (3,502) | |
Balance including FV increments | MSC | ||
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE | ||
Current assets | 86,762 | |
Total assets | 281,685 | |
Current liabilities | (39,203) | |
Total liabilities | $ (71,963) |
DEBT (Details)
DEBT (Details) - USD ($) | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 25, 2020 | May 23, 2019 | Aug. 10, 2018 | Mar. 31, 2021 |
LONG-TERM DEBT | ||||||||
Shares issued as bonus interest | 1,935,484 | |||||||
Stock issued during the period | $ 2,600,000 | $ 29,875,000 | ||||||
Term Loan | ||||||||
LONG-TERM DEBT | ||||||||
Working capital covenant | $ 10,000,000 | |||||||
Term Loan | Robert McEwen | ||||||||
LONG-TERM DEBT | ||||||||
Face amount | $ 50,000,000 | $ 50,000,000 | ||||||
Term of debt instrument | 3 years | |||||||
Stated interest rate (as a percent) | 9.75% | |||||||
Amended loan agreement | ||||||||
LONG-TERM DEBT | ||||||||
Face amount | $ 50,000,000 | |||||||
Extension term for repayment of debt | 2 years | |||||||
Term loan retirement period | 12 months | |||||||
Principal repayments | $ 2,000,000 | |||||||
Final payment | $ 26,000,000 | |||||||
Working capital covenant | $ 10,000,000 | $ 7,000,000 | $ 5,000,000 | $ 2,500,000 | ||||
Shares issued as bonus interest | 2,091,700 | |||||||
Stock issued during the period | $ 1,875,000 |
DEBT - Rollforward (Details)
DEBT - Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Long-term debt | ||
Long-term portion | $ 24,163 | $ 24,080 |
Term Loan | ||
Long-term debt | ||
Balance, beginning of year | 48,160 | 49,516 |
Interest expense | 1,368 | 5,394 |
Interest payments | (1,202) | (4,875) |
Bonus Interest - Equity based financing fee | (1,875) | |
Balance, end of year | 48,326 | 48,160 |
Long-term portion | $ 48,326 | $ 48,160 |
ASSET RETIREMENT OBLIGATIONS -
ASSET RETIREMENT OBLIGATIONS - Retirement obligation rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Changes in the asset retirement obligations | ||
Asset retirement obligation, beginning of the period | $ 34,000 | $ 32,201 |
Settlements | (80) | (267) |
Accretion of liability | 487 | 1,901 |
Adjustment reflecting updated estimates | 425 | (54) |
Foreign exchange revaluation | 152 | 219 |
Asset retirement obligation, ending balance | 34,984 | 34,000 |
Less current portion | 3,817 | 3,232 |
Long-term portion | $ 31,167 | $ 30,768 |
ASSET RETIREMENT OBLIGATIONS _2
ASSET RETIREMENT OBLIGATIONS - Reclamation and Accretion (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Reclamation obligations | ||
Reclamation adjustment reflecting updated estimates | $ 425 | $ 203 |
Reclamation accretion | 486 | 457 |
Total | $ 911 | $ 660 |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) - USD ($) | Feb. 09, 2021 | Jan. 29, 2021 | Dec. 31, 2020 | Sep. 10, 2020 | Nov. 20, 2019 | May 23, 2019 | Mar. 29, 2019 | Mar. 31, 2021 | Jun. 30, 2020 |
Number of units issued | 1,935,484 | ||||||||
Net proceeds | $ 2,600,000 | $ 29,875,000 | |||||||
Issuance costs | $ 400,000 | ||||||||
Sale of common stock for cash, net of issuance costs | 29,875,000 | ||||||||
November 2019 Offering | |||||||||
Number of units issued | 37,750,000 | ||||||||
Price per unit | $ 1.325 | ||||||||
Gross proceeds | $ 46,600,000 | ||||||||
Net proceeds | $ 46,600,000 | ||||||||
Warrant expiration term | 5 years | ||||||||
Issuance costs | $ 3,500,000 | ||||||||
Outstanding warrants | 21,706,250 | ||||||||
Warrants issued in connection with equity issuance | 2,831,250 | ||||||||
June 2020 Amended and Restated Credit Agreement | |||||||||
Number of units issued | 2,091,700 | ||||||||
Net proceeds | $ 1,900,000 | ||||||||
March 2019 Offering | |||||||||
Number of units issued | 14,193,548 | ||||||||
Price per unit | $ 1.55 | ||||||||
Net proceeds | $ 20,300,000 | ||||||||
Number of shares of common stock | 1 | ||||||||
Number of warrants received for each share of common stock share sold | 0.50 | ||||||||
Issuance costs | $ 1,700,000 | ||||||||
Outstanding warrants | 8,064,516 | ||||||||
Canadian Exploration Expenditures | |||||||||
Gross proceeds | $ 20,200,000 | ||||||||
Equity Financing In February 2021 | |||||||||
Number of units issued | 30,000,000 | ||||||||
Price per unit | $ 1.05 | ||||||||
Gross proceeds | $ 31,500,000 | ||||||||
Net proceeds | 29,900,000 | ||||||||
Issuance costs | $ 1,700,000 | ||||||||
Subscription Receipts | Officers Directors And Certain Employees | |||||||||
Number of units issued | 1,935,484 | ||||||||
Price per unit | $ 1.55 | ||||||||
Common Stock and Additional Paid-in Capital | |||||||||
Number of units issued | 30,000,000 | ||||||||
Net proceeds | $ 29,875,000 | ||||||||
Common Stock and Additional Paid-in Capital | November 2019 Offering | |||||||||
Net proceeds | 37,300,000 | ||||||||
Warrant at First Stock Price | November 2019 Offering | |||||||||
Net proceeds | $ 9,300,000 | ||||||||
Number of shares of common stock | 1 | ||||||||
Number of warrants received for each share of common stock share sold | 0.50 | ||||||||
Warrant at First Stock Price | March 2019 Offering | |||||||||
Number of shares of common stock | 1 | ||||||||
Price per common share for each warrant | $ 2 | ||||||||
Warrant expiration term | 3 years | ||||||||
Warrant at Second Stock Price | November 2019 Offering | |||||||||
Number of shares of common stock | 1 | ||||||||
Price per common share for each warrant | $ 1.7225 | ||||||||
Flow Through Common Shares | Canadian Development Expenses | |||||||||
Number of units issued | 12,600,600 | ||||||||
Price per unit | $ 1.01 | ||||||||
Gross proceeds | $ 12,700,000 | ||||||||
Net proceeds | 12,000,000 | ||||||||
Issuance costs | 700,000 | ||||||||
Net proceeds allocated to the sale of tax benefits | 1,200,000 | ||||||||
Sale of common stock for cash, net of issuance costs | $ 10,800,000 | ||||||||
Exploration expenditures | 7,900,000 | ||||||||
Flow Through Common Shares | Canadian Exploration Expenditures | |||||||||
Number of units issued | 7,669,900 | 6,298,166 | |||||||
Price per unit | $ 1.28 | $ 1.65 | |||||||
Gross proceeds | $ 9,800,000 | $ 10,400,000 | |||||||
Net proceeds | 9,800,000 | 9,800,000 | |||||||
Issuance costs | 0 | 600,000 | |||||||
Net proceeds allocated to the sale of tax benefits | 2,100,000 | 2,000,000 | |||||||
Sale of common stock for cash, net of issuance costs | $ 7,700,000 | $ 7,800,000 | |||||||
Exploration expenditures | $ 4,300,000 |
SHAREHOLDERS' EQUITY - Black-Sc
SHAREHOLDERS' EQUITY - Black-Scholes pricing model (Details) - November 2019 Offering - Warrant at First Stock Price | Nov. 20, 2019$ / shares |
Principal assumptions used in applying the Black-Scholes option pricing model for the awards | |
Risk-free interest rate (as a percent) | 1.55% |
Dividend yield (as a percent) | 0.00% |
Volatility factor of the expected market price of common stock (as a percent) | 60.00% |
Weighted-average expected life of option | 5 years |
Weighted-average grant date fair value (in dollars per share) | $ 0.52 |
SHAREHOLDERS' EQUITY - Stock Op
SHAREHOLDERS' EQUITY - Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
STOCK BASED COMPENSATION | ||
Number of common stock reserved for issuance | 17,500,000 | |
Number of shares of common stock reserved for issuance | 3,200,483 | 4,963,516 |
Maximum number of shares that may be subject to grants of options to an individual in a calendar year | 500,000 | |
Shares | ||
Shares of common stock issued upon exercise of stock options | 0 | 60,000 |
Weighted Average Exercise Price | ||
Weighted average exercise price of stock options (in dollars per share) | $ 1.06 | |
Proceeds from exercise of stock options | $ 62 | |
Common Stock and Additional Paid-in Capital | ||
Shares | ||
Shares of common stock issued upon exercise of stock options | 60,000 |
NET LOSS PER SHARE (Details)
NET LOSS PER SHARE (Details) - shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Options and warrants outstanding not included in the computation of diluted weighted average shares because their effect would have been anti-dilutive (in shares) | 6,118,817 | 4,430,784 |
Warrant at First Stock Price | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Options and warrants outstanding not included in the computation of diluted weighted average shares because their effect would have been anti-dilutive (in shares) | 29,770,766 | 29,770,766 |
RELATED PARTY TRANSACTIONS - Ex
RELATED PARTY TRANSACTIONS - Expense and Payable (Details) - Entity Affiliated With Related Party - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Lexam L.P. | |||
RELATED PARTY TRANSACTIONS | |||
Expense | $ 11 | $ 76 | |
Related party outstanding accounts payable (receivable) | 64 | $ 72 | |
REVlaw | |||
RELATED PARTY TRANSACTIONS | |||
Expense | 35 | $ 38 | |
Related party outstanding accounts payable (receivable) | $ 194 | $ 90 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Jun. 25, 2020 | Aug. 10, 2018 | |
RELATED PARTY TRANSACTIONS | |||||
Long-term debt from related party | $ 24,163 | $ 24,080 | |||
Robert McEwen | Term Loan | |||||
RELATED PARTY TRANSACTIONS | |||||
Face amount | $ 50,000 | $ 50,000 | |||
Long-term debt from related party | $ 25,000 | ||||
Affiliate of Robert McEwen | |||||
RELATED PARTY TRANSACTIONS | |||||
Debt interest expense | $ 600 | $ 600 |
FAIR VALUE ACCOUNTING (Details)
FAIR VALUE ACCOUNTING (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2021 | Dec. 31, 2020 | |
Liabilities: | |||
Long term debt | $ 48.3 | $ 48.2 | |
Gold Bar mine | |||
Liabilities: | |||
Impairment of long-lived assets | $ 83.8 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Reclamation Bonds, surety bonds (Details) $ in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2021USD ($) | Mar. 31, 2021CAD ($) | |
Timmins | ||
Reclamation Bonds | ||
Restrictive time deposits for reclamation bonding | $ 0.1 | |
Surety Bonds | ||
Reclamation Bonds | ||
Percentage of annual fees on surety bonds | 2.30% | 2.30% |
Percentage of required deposit on value of surety bonds | 11.00% | 11.00% |
Restricted cash | $ 3.6 | |
Surety Bonds | Nevada | ||
Reclamation Bonds | ||
Surety bonding obligation | 20.1 | |
Surety Bonds | Canada | ||
Reclamation Bonds | ||
Surety bonding obligation | 11.9 | $ 14.9 |
Reclamation Bonds | Tonkin and Gold Bar Properties | ||
Reclamation Bonds | ||
Reclamation bonding obligation | 20.1 | |
Black Fox Complex | Reclamation Bonds | ||
Reclamation Bonds | ||
Reclamation bonding obligation | $ 11.9 | $ 14.9 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Streaming Agreement (Details) $ in Millions | Aug. 25, 2017$ / oz | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) |
Black Fox Complex | |||
Other commitments | |||
Obligation to sell (as a percent) | 8.00% | ||
Long term gold price (in dollars per ounce) | $ / oz | 561 | ||
Revenue of acquiree since acquisition date and implementation of streaming agreement | $ | $ 0.3 | $ 0.5 | |
Black Fox Complex | Maximum | |||
Other commitments | |||
Inflation adjustment (as a percent) | 2.00% | ||
Pike River property | |||
Other commitments | |||
Obligation to sell (as a percent) | 6.30% |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES - Flow through Eligible Expenses (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($)item | Jan. 29, 2021USD ($) | |
Flow through Eligible Expenses | |||
Other commitments | |||
Number of flow through share issuance during period | item | 2 | ||
Flow Through CDE | |||
Other commitments | |||
Commitment amount | $ 12.7 | ||
Exploration expenditures | $ 7.9 | ||
Flow Through CEE | |||
Other commitments | |||
Commitment amount | $ 18.3 | ||
Exploration expenditures | $ 4.3 | $ 1.9 |
CASH AND CASH EQUIVALENTS AND_3
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | ||||
Cash and cash equivalents | $ 47,402 | $ 20,843 | ||
Restricted cash - non-current (Note 18) | 3,625 | 3,595 | ||
Total cash, cash equivalents, and restricted cash | $ 51,027 | $ 24,438 | $ 28,822 | $ 46,500 |