Segment Reporting

6 Months Ended

Jun. 30, 2022

Segment Reporting

Segment Reporting

22. Segment Reporting

As of June 30, 2022, the Company has organized its operations into three geographic regions: Oaxaca, Mexico, Michigan, U.S.A., and Corporate and Other. Oaxaca, Mexico represents the Company’s only production stage property. Michigan, U.S.A. is an advanced exploration stage property. 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 Company’s business activities that are not considered production stage or advanced exploration stage properties are included in Corporate and Other.

The following table shows selected information from the Consolidated Balance Sheets relating to the Company’s segments (in thousands):

	Oaxaca, Mexico		Michigan, USA		Corporate and Other		Consolidated
As of June 30, 2022
Total current assets	$	50,771	$	4,586	$	5,069	$	60,426
Total non-current assets		63,224		89,578		378		153,180
Total assets	$	113,995	$	94,164	$	5,447	$	213,606
Total current liabilities		20,289		1,738		1,346		23,373
Total non-current liabilities		655		62,758		818		64,231
Total shareholders' equity		93,051		29,668		3,283		126,002
Total liabilities and shareholders' equity	$	113,995	$	94,164	$	5,447	$	213,606
As of December 31, 2021
Total current assets	$	50,057	$	5,528	$	3,330	$	58,915
Total non-current assets		66,756		90,018		73		156,847
Total assets	$	116,813	$	95,546	$	3,403	$	215,762
Total current liabilities		25,833		2,459		1,367		29,659
Total non-current liabilities		1,436		63,438		479		65,353
Total shareholders' equity		89,544		29,649		1,557		120,750
Total liabilities and shareholders' equity	$	116,813	$	95,546	$	3,403	$	215,762

The following table shows selected information from the Consolidated Statements of Operations relating to the Company’s segments (in thousands):

	Oaxaca, Mexico		Michigan, USA (1)		Corporate and Other		Consolidated
For the three months ended 2022
Sales, net	$	37,064	$	-	$	-	$	37,064
Total mine cost of sales, including depreciation		28,995		33		17		29,045
Exploration expense		810		2,027		-		2,837
Total other costs and expenses, including G&A		(3,568)		121		2,175		(1,272)
Provision for income taxes (benefit)		3,518		-		263		3,781
Net income (loss)	$	7,309	$	(2,181)	$	(2,455)	$	2,673
For the three months ended 2021
Sales, net	$	30,836	$	-	$	-	$	30,836
Total mine cost of sales, including depreciation		23,956		-		-		23,956
Exploration expense		643		-		5		648
Total other costs and expenses, including G&A		911		-		2,287		3,198
Provision for income taxes (benefit)		1,751		-		-		1,751
Net income (loss)	$	3,575	$	-	$	(2,292)	$	1,283

(1) Michigan, USA was acquired on December 10, 2021, and therefore, there is no information for the three months ended June 30, 2021.

	Oaxaca, Mexico			Michigan, USA (1)			Corporate and Other			Consolidated
For the six months ended June 30, 2022
Sales, net	$	82,481	$		-	$		-	$	82,481
Total mine cost of sales, including depreciation		55,089			33			17		55,139
Exploration expense		2,047			3,095			-		5,142
Total other costs and expenses, including G&A		1,124			438			4,814		6,376
Provision for income taxes (benefit)		8,869			-			263		9,132
Net income (loss)	$	15,352	$		(3,566)	$		(5,094)	$	6,692
For the six months ended June 30, 2021
Sales, net	$	58,104	$		-	$		-	$	58,104
Total mine cost of sales, including depreciation		42,649			-			-		42,649
Exploration expense		1,840			-			15		1,855
Total other costs and expenses, including G&A		533			-			4,912		5,445
Provision for income taxes (benefit)		4,345			-			-		4,345
Net income (loss)	$	8,737	$		-	$		(4,927)	$	3,810

(1) Michigan, USA was acquired on December 10, 2021, and therefore, there is no information for the six months ended June 30, 2021.