Segment Reporting

9 Months Ended

Sep. 30, 2022

Segment Reporting

Segment Reporting

22. Segment Reporting

As of September 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 September 30, 2022
Total current assets	$	41,848	$	3,911	$	2,570	$	48,329
Total non-current assets		59,908		89,347		1,954		151,209
Total assets	$	101,756	$	93,258	$	4,524	$	199,538
Total current liabilities		15,893		2,636		937		19,466
Total non-current liabilities		2		62,706		1,720		64,428
Total shareholders' equity		85,861		27,916		1,867		115,644
Total liabilities and shareholders' equity	$	101,756	$	93,258	$	4,524	$	199,538
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 September 30, 2022
Sales, net	$	23,869	$	-	$	-	$	23,869
Total mine cost of sales, including depreciation		26,016		21		10		26,047
Exploration expense		1,143		3,830		-		4,973
Total other costs and expenses, including G&A		(105)		349		2,552		2,796
Provision for income taxes		(1,235)		-		1,018		(217)
Net loss	$	(1,950)	$	(4,200)	$	(3,580)	$	(9,730)
For the three months ended September 30, 2021
Sales, net	$	29,029	$	-	$	-	$	29,029
Total mine cost of sales, including depreciation		20,784		-		-		20,784
Exploration expense		1,802		-		3		1,805
Total other costs and expenses, including G&A		122		-		2,437		2,559
Provision for income taxes		2,089		-		263		2,352
Net income (loss)	$	4,232	$	-	$	(2,703)	$	1,529

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

	Oaxaca, Mexico			Michigan, USA (1)			Corporate and Other			Consolidated
For the nine months ended September 30, 2022
Sales, net	$	106,350	$		-	$		-	$	106,350
Total mine cost of sales, including depreciation		81,105			54			27		81,186
Exploration expense		3,190			6,925			-		10,115
Total other costs and expenses, including G&A		1,019			787			7,366		9,172
Provision for income taxes		7,634			-			1,281		8,915
Net income (loss)	$	13,402	$		(7,766)	$		(8,674)	$	(3,038)
For the nine months ended September 30, 2021
Sales, net	$	87,133	$		-	$		-	$	87,133
Total mine cost of sales, including depreciation		63,433			-			-		63,433
Exploration expense		3,642			-			18		3,660
Total other costs and expenses, including G&A		655			-			7,349		8,004
Provision for income taxes		6,434			-			263		6,697
Net income (loss)	$	12,969	$		-	$		(7,630)	$	5,339

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