Derivative Assets And Liabilities

12 Months Ended

Dec. 31, 2020

Disclosure of Derivative Liabilities [Abstract]

Derivative Assets And Liabilities

14. DERIVATIVE ASSETS AND LIABILITIES

The Notes indenture grants the Company the option to prepay the notes prior to the maturity of the instruments, and specifies a premium during each applicable time period. These prepayment options have been accounted for as embedded derivatives and are outlined below. The Company may redeem the secured notes:

● in whole or in part at any time during the twelve-month period beginning on December 15, 2019 at a redemption price equal to 104% of the principal amount of the secured notes redeemed, plus accrued and unpaid interest to the date of redemption;

● in whole or in part at any time during the twelve-month period beginning on December 15, 2020 at a redemption price equal to 102% of the principal amount of the secured notes redeemed, plus accrued and unpaid interest to the date of redemption; and

● in whole or in part at any time during the twelve-month period beginning on December 15, 2021 at a redemption price equal to 100% of the principal amount of the secured notes redeemed, plus accrued and unpaid interest to the date of redemption.

During 2020, the Company entered into foreign currency forward swap contracts to mitigate the risk that a devaluation of the U.S. dollar against the Canadian dollar would reduce the Canadian dollar equivalent of the U.S. dollar sales proceeds and the Company would not have sufficient Canadian dollar funds to contribute to the operations of the GK Mine. During the year ended December 31, 2020, all foreign currency forward swaps, previously entered into were settled, as a result of the RCF settlement in the year (Note 9).

These derivatives have been classified as “non-hedge derivatives”. Changes in fair value of the foreign currency forward swap contracts are recognized in net income or loss as gains or losses on derivatives.

The following table presents the various derivatives as at December 31, 2020 and 2019:

	December 31, 2020		December 31 2019
Prepayment option embedded derivatives	$	185	$	200
Foreign currency contract derivative assets		-		587
		185		787
Current portion of embedded derivatives		23		-
Current portion of foreign currency contracts assets		-		587
Current portion of derivative assets		23		587
Non-current derivative assets	$	162	$	200

The following table presents amounts recognized in the Consolidated Statement of Comprehensive Loss for the year ended December 31, 2020 and 2019:

	Year ended			Year ended
	December 31, 2020			December 31, 2019
Gain (loss) on derivative contracts - currency  contracts	$	158		$	(163	)
Loss on prepayment option embedded derivative		(31	)		(1,051	)
Total	$	127		$	(1,214	)