SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:	9 Months Ended
Sep. 30, 2018
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:	NOTE 13 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: ADOPTION OF REVENUE RECOGNITION STANDARD The Company has adopted FASB ASC 606, Revenue from Contracts with Customers, effective January 1, 2018, applying the modified retrospective approach. Under this approach, the results for reporting periods beginning after January 1, 2018 have been presented in the consolidated financial statements under the guidance, while prior period amounts have not been adjusted and will continue to be reported under the guidance in effect for those periods. Upon adoption by the Company, no cumulative effect adjustment was required to be recognized at January 1, 2018, as the adoption of the standard has not resulted in a change to the way the Company recognizes its revenue. The Company has applied the related disclosure requirements of the new standard beginning in 2018. SIGNIFICANT ACCOUNTING POLICIES With the exception of the change in the Company’s Revenue Recognition policy as a result of the adoption of ASC 606, there have been no new or material changes to the significant accounting policies discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, that are of significance, or potential significance to the Company. Revenue recognition - The Company adopted ASC 606, Revenue from Contracts with Customers, effective January 1, 2018. The Company’s revenue consists of product revenue resulting from the sale of copper and non-copper products, such as molybdenum, silver, zinc, lead and gold. The Company accounts for a contract with a customer when there is a legally enforceable contract between the Company and the customer, the rights of the parties are identified, the contract has commercial substance, and collectability of the contract consideration is probable. The Company’s revenues are measured based on consideration specified in the contract with each customer. The Company’s marketing strategy and annual sales planning emphasize developing and maintaining long-term customer relationships. Generally, 80% to 90% of the Company’s metal production is sold under annual or longer-term contracts. The Company considers each contract to be a single performance obligation, represented by the delivery of a series of distinct goods that are substantially the same, with the same pattern of transfer to the Company’s customers. Accordingly, the Company recognizes revenues for each contract over a period of time, applying the invoice practical expedient. The Company considers that it has a right to consideration from its customers in an amount that corresponds directly to the value transferred to those customers, for which reason it believes that this method is a faithful depiction of the transfer of goods to its customers. Because the duration of the majority of these contracts is one year or more, and because the Company has applied the invoice practical expedient, it does not disclose the remaining performance obligations as of the end of each reporting period. The remainder of the Company’s revenues are generated by spot sales that are recognized at a point in time. Under both sales models, revenue is recognized as the performance obligations are satisfied, when the Company transfers control of the goods and title passes to the customer. Considering the International Commercial Terms (Incoterms) utilized by the Company, control is transferred generally upon the completion of loading the material at the point of origin. This is the point at which the customer obtains legal title to the product as well as the ability to direct the use of and obtain substantially all of the remaining benefits of ownership of the asset. Additionally, payment is generally due upon the delivery of the shipping and title documents at the point of origin. Copper and non-copper revenues are measured based on the monthly average of prevailing commodity prices according to the terms of the contracts. The Company provides allowances for doubtful accounts based upon historical bad debt and claims experience and periodic evaluation of specific customer accounts. Substantially all of the Company’s sales are made under cost and freight, or cost, insurance and freight Incoterms, whereby the Company is responsible for providing shipping and insurance after control of the inventory has been transferred to the customer. Per the terms of the Company’s contracts, these services are not distinct within the context of the contract, as they are not separately identifiable from other promises in the contract. It is the Company policy and it has a long-standing history of arranging and providing shipping and insurance services to its customers. Accordingly, shipping and insurance are not considered separate performance obligations. The related costs of shipping and insurance are presented within the cost of sales line in the accompanying condensed consolidated statements of income. Furthermore, the Company considered the impact of the shipping and insurance services on the determination of when control is transferred to its customers. It has concluded that the terms of these services do not impact its customers’ ability to sell, pledge, or otherwise use the products in shipment. Also, there is a small likelihood and minimal history of lost or damaged goods during shipment. Considering these factors, combined with the other indicators of control previously mentioned, the Company has concluded that these services do not impact the determination that control is transferred at the point of origin. For certain of the Company’s sales of copper and molybdenum products, customer contracts allow for pricing based on a month subsequent to shipping, in most cases within the following three months and occasionally in some cases a few additional months. In such cases, revenue is recorded at a provisional price at the time of shipment. The provisionally priced copper sales are adjusted to reflect forward LME or COMEX copper prices at the end of each month until a final adjustment is made to the price of the shipments upon settlement with customers pursuant to the terms of the contract. In the case of molybdenum sales, for which there are no published forward prices, the provisionally priced sales are adjusted to reflect the market prices at the end of each month until a final adjustment is made to the price of the shipments upon settlement with customers pursuant to the terms of the contract. These provisional pricing arrangements are accounted for separately from the contract as an embedded derivative instrument under ASC 815-30 ‘‘Derivatives and Hedging—Cash Flow Hedges.’’ The Company sells copper in concentrate, anode, blister and refined form at industry standard commercial terms. Net sales include the invoiced value of copper, zinc, silver, molybdenum, sulfuric acid and other metals and the corresponding fair value adjustment of the related forward contract of copper and molybdenum. IMPACT OF NEW ACCOUNTING STANDARDS On February 25, 2016, the FASB issued ASU 2016-02 ‘‘Leases’’ (Topic 842). This update significantly modifies the accounting model of leases for lessees; as it requires them to recognize assets and liabilities in the balance sheet for virtually all leases. However, the classification of leases as finance leases or operating leases is maintained for lessees. In addition, for leases with a term of 12 months or less, a lessee can elect by class of underlying asset not to record assets and liabilities on the balance sheet, and recognize lease expense on a straight-line basis over the lease term. The lessor accounting model for leases remains mostly unchanged from previous guidance, except for specific profit recognition requirements which were modified in order to align them to the new revenue recognition standard issued by the FASB, and the lease classification criteria, to ensure consistency with those for a lessee. The amendments in this update will be effective for the Company on January 1, 2019. The Company has designed an implementation plan and has formed a cross-functional implementation team; which is performing a completeness assessment over the lease contracts of the Company; started to establish new policies, procedures and internal controls related to the new standard. At September 30, 2018, the Company has decided to apply the new leases standard at the adoption date and to recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Consequently, the financial statements for prior periods will not be modified. The Company is also in the process of assessing the required disclosures of the new standard, and expects to provide additional qualitative and quantitative disclosures related to leasing arrangements upon adoption. The Company continues with the analysis of the new guidance and the impact it will have on the consolidated financial statements and disclosures, and expects to complete it during the fourth quarter of 2018. Also, during the third quarter of 2018, the FASB issued among others, the following three new accounting updates to the Codification: ASU 2018-11: In July 2018, the FASB issued ASU 2018-11 “Leases — Targeted Improvements”. This update provides the Company with an additional transition method to adopt the new leases standard. Under this new transition method, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Consequently, the financial statements for prior periods will not be affected. The amendments in this update will be effective for the Company on January 1, 2019. ASU 2018-13: In August 2018, the FASB issued ASU 2018-13 “Fair Value Measurement — Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement”. This update is part of the FASB´s project to improve the effectiveness of disclosures in the notes to financial statements. Some of the amendments are the removal of the following requeriments: the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels and the valuation processes for Level 3 fair value measurements. Additionally the disclosure requeriment of the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period was added. The amendments in this update are effective for the Company in fiscal years beginning after December 15, 2019. ASU 2018-14: In August 2018, the FASB issued ASU 2018-14 “Compensation - Retirement Benefits - Defined Benefit Plans - General”. This update modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The amendments in this update will be effective for the Company on January 1, 2021.

NOTE 13 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

ADOPTION OF REVENUE RECOGNITION STANDARD

The Company has adopted FASB ASC 606, Revenue from Contracts with Customers, effective January 1, 2018, applying the modified retrospective approach. Under this approach, the results for reporting periods beginning after January 1, 2018 have been presented in the consolidated financial statements under the guidance, while prior period amounts have not been adjusted and will continue to be reported under the guidance in effect for those periods. Upon adoption by the Company, no cumulative effect adjustment was required to be recognized at January 1, 2018, as the adoption of the standard has not resulted in a change to the way the Company recognizes its revenue. The Company has applied the related disclosure requirements of the new standard beginning in 2018.

SIGNIFICANT ACCOUNTING POLICIES

With the exception of the change in the Company’s Revenue Recognition policy as a result of the adoption of ASC 606, there have been no new or material changes to the significant accounting policies discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, that are of significance, or potential significance to the Company.

Revenue recognition -

The Company adopted ASC 606, Revenue from Contracts with Customers, effective January 1, 2018. The Company’s revenue consists of product revenue resulting from the sale of copper and non-copper products, such as molybdenum, silver, zinc, lead and gold.

The Company accounts for a contract with a customer when there is a legally enforceable contract between the Company and the customer, the rights of the parties are identified, the contract has commercial substance, and collectability of the contract consideration is probable. The Company’s revenues are measured based on consideration specified in the contract with each customer.

The Company’s marketing strategy and annual sales planning emphasize developing and maintaining long-term customer relationships. Generally, 80% to 90% of the Company’s metal production is sold under annual or longer-term contracts. The Company considers each contract to be a single performance obligation, represented by the delivery of a series of distinct goods that are substantially the same, with the same pattern of transfer to the Company’s customers. Accordingly, the Company recognizes revenues for each contract over a period of time, applying the invoice practical expedient. The Company considers that it has a right to consideration from its customers in an amount that corresponds directly to the value transferred to those customers, for which reason it believes that this method is a faithful depiction of the transfer of goods to its customers. Because the duration of the majority of these contracts is one year or more, and because the Company has applied the invoice practical expedient, it does not disclose the remaining performance obligations as of the end of each reporting period.

The remainder of the Company’s revenues are generated by spot sales that are recognized at a point in time.

Under both sales models, revenue is recognized as the performance obligations are satisfied, when the Company transfers control of the goods and title passes to the customer. Considering the International Commercial Terms (Incoterms) utilized by the Company, control is transferred generally upon the completion of loading the material at the point of origin. This is the point at which the customer obtains legal title to the product as well as the ability to direct the use of and obtain substantially all of the remaining benefits of ownership of the asset. Additionally, payment is generally due upon the delivery of the shipping and title documents at the point of origin. Copper and non-copper revenues are measured based on the monthly average of prevailing commodity prices according to the terms of the contracts. The Company provides allowances for doubtful accounts based upon historical bad debt and claims experience and periodic evaluation of specific customer accounts.

Substantially all of the Company’s sales are made under cost and freight, or cost, insurance and freight Incoterms, whereby the Company is responsible for providing shipping and insurance after control of the inventory has been transferred to the customer. Per the terms of the Company’s contracts, these services are not distinct within the context of the contract, as they are not separately identifiable from other promises in the contract. It is the Company policy and it has a long-standing history of arranging and providing shipping and insurance services to its customers. Accordingly, shipping and insurance are not considered separate performance obligations. The related costs of shipping and insurance are presented within the cost of sales line in the accompanying condensed consolidated statements of income.

Furthermore, the Company considered the impact of the shipping and insurance services on the determination of when control is transferred to its customers. It has concluded that the terms of these services do not impact its customers’ ability to sell, pledge, or otherwise use the products in shipment. Also, there is a small likelihood and minimal history of lost or damaged goods during shipment. Considering these factors, combined with the other indicators of control previously mentioned, the Company has concluded that these services do not impact the determination that control is transferred at the point of origin.

For certain of the Company’s sales of copper and molybdenum products, customer contracts allow for pricing based on a month subsequent to shipping, in most cases within the following three months and occasionally in some cases a few additional months. In such cases, revenue is recorded at a provisional price at the time of shipment. The provisionally priced copper sales are adjusted to reflect forward LME or COMEX copper prices at the end of each month until a final adjustment is made to the price of the shipments upon settlement with customers pursuant to the terms of the contract. In the case of molybdenum sales, for which there are no published forward prices, the provisionally priced sales are adjusted to reflect the market prices at the end of each month until a final adjustment is made to the price of the shipments upon settlement with customers pursuant to the terms of the contract.

These provisional pricing arrangements are accounted for separately from the contract as an embedded derivative instrument under ASC 815-30 ‘‘Derivatives and Hedging—Cash Flow Hedges.’’ The Company sells copper in concentrate, anode, blister and refined form at industry standard commercial terms. Net sales include the invoiced value of copper, zinc, silver, molybdenum, sulfuric acid and other metals and the corresponding fair value adjustment of the related forward contract of copper and molybdenum.

IMPACT OF NEW ACCOUNTING STANDARDS

On February 25, 2016, the FASB issued ASU 2016-02 ‘‘Leases’’ (Topic 842). This update significantly modifies the accounting model of leases for lessees; as it requires them to recognize assets and liabilities in the balance sheet for virtually all leases. However, the classification of leases as finance leases or operating leases is maintained for lessees. In addition, for leases with a term of 12 months or less, a lessee can elect by class of underlying asset not to record assets and liabilities on the balance sheet, and recognize lease expense on a straight-line basis over the lease term.

The lessor accounting model for leases remains mostly unchanged from previous guidance, except for specific profit recognition requirements which were modified in order to align them to the new revenue recognition standard issued by the FASB, and the lease classification criteria, to ensure consistency with those for a lessee.

The amendments in this update will be effective for the Company on January 1, 2019. The Company has designed an implementation plan and has formed a cross-functional implementation team; which is performing a completeness assessment over the lease contracts of the Company; started to establish new policies, procedures and internal controls related to the new standard.

At September 30, 2018, the Company has decided to apply the new leases standard at the adoption date and to recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Consequently, the financial statements for prior periods will not be modified. The Company is also in the process of assessing the required disclosures of the new standard, and expects to provide additional qualitative and quantitative disclosures related to leasing arrangements upon adoption. The Company continues with the analysis of the new guidance and the impact it will have on the consolidated financial statements and disclosures, and expects to complete it during the fourth quarter of 2018.

Also, during the third quarter of 2018, the FASB issued among others, the following three new accounting updates to the Codification:

ASU 2018-11: In July 2018, the FASB issued ASU 2018-11 “Leases — Targeted Improvements”. This update provides the Company with an additional transition method to adopt the new leases standard. Under this new transition method, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Consequently, the financial statements for prior periods will not be affected. The amendments in this update will be effective for the Company on January 1, 2019.

ASU 2018-13: In August 2018, the FASB issued ASU 2018-13 “Fair Value Measurement — Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement”. This update is part of the FASB´s project to improve the effectiveness of disclosures in the notes to financial statements. Some of the amendments are the removal of the following requeriments: the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels and the valuation processes for Level 3 fair value measurements. Additionally the disclosure requeriment of the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period was added. The amendments in this update are effective for the Company in fiscal years beginning after December 15, 2019.

ASU 2018-14: In August 2018, the FASB issued ASU 2018-14 “Compensation - Retirement Benefits - Defined Benefit Plans - General”. This update modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The amendments in this update will be effective for the Company on January 1, 2021.