Segment Information

12 Months Ended

Dec. 31, 2016

Segment Information

Segment Information

22.Segment Information

The Company’s sole activity is the mining, construction and exploration of mineral properties containing precious metals.  The Company’s reportable segments are based upon the Company’s revenue producing activities and cash consuming activities. The Company reports two segments, one for its Velardeña Properties in Mexico and the other comprised of non-revenue producing activities including exploration, construction and general and administrative activities.  Intercompany revenue and expense amounts have been eliminated within each segment in order to report on the basis that management uses internally for evaluating segment performance. The financial information relating to the Company’s segments is as follows:

							Exploration, El
							Quevar,
			Costs		Depreciation,		Velardeña and
			Applicable		Depletion and		Administrative		Pre-Tax				Capital
The Year ended December 31, 2016	Revenue		to Sales		Amortization		Expense		(Income)/Loss		Total Assets		Expenditures
							(in thousands)
Velardeña Properties	$	6,400	$	2,046	$	1,116	$	2,507	$	(2,167)	$	7,821	$	35
Corporate, Exploration & Other		—		—		432		7,598		12,826		6,187		15
	$	6,400	$	2,046	$	1,548	$	10,105	$	10,659	$	14,008	$	50
The Year ended December 31, 2015
Velardeña Properties	$	8,071	$	10,065	$	3,826	$	1,347	$	17,346	$	8,988	$	28
Corporate, Exploration & Other		—		—		654		8,918		8,037		8,013		16
	$	8,071	$	10,065	$	4,480	$	10,265	$	25,383	$	17,001	$	44

All of the revenue for the two years presented was from the Company's Velardeña Properties in Mexico (see Note 16).  The revenue for 2016 was all attributable to the lease of the oxide plant.  The revenue for 2015 was attributable to both sales of precipitates and concentrates to three customers under varying agreements and the lease of the oxide plant. The Company suspended operations at its Velardeña properties in November, 2015 (see Note 1).

The 2015 Velardeña Properties pre-tax loss includes a $13.2 million impairment charge recorded at September 30, 2015 (see Note 2).  The impairment charge is also reflected in the reduction of the Velardeña Properties total assets for 2015.