| ☒ | | |
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
| ☐ | | | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
|
Delaware
(State or other jurisdiction of incorporation or organization) |
| |
27-2654848
(I.R.S. Employer Identification No.) |
|
|
Title of each class
|
| |
Trading symbol(s)
|
| |
Name of each exchange on which registered
|
|
|
Common Stock, par value $0.001 per share
|
| |
GATO
|
| |
New York Stock Exchange
Toronto Stock Exchange |
|
| Large accelerated filer ☐ | | | Accelerated filer ☐ | |
| Non-accelerated filer ☒ | | | Smaller reporting company ☒ | |
| | | | Emerging growth company ☒ | |
| | |
Page
|
| |||
Part I
|
| | |||||
| | | | 6 | | | |
| | | | 15 | | | |
| | | | 35 | | | |
| | | | 36 | | | |
| | | | 52 | | | |
| | | | 52 | | | |
Part II
|
| | |||||
| | | | 53 | | | |
| | | | 54 | | | |
| | | | 54 | | | |
| | | | 66 | | | |
| | | | 67 | | | |
| | | | 105 | | | |
| | | | 105 | | | |
| | | | 105 | | | |
Part III
|
| | |||||
| | | | 106 | | | |
| | | | 106 | | | |
| | | | 106 | | | |
| | | | 106 | | | |
| | | | 106 | | | |
Part IV
|
| | |||||
| | | | 107 | | | |
| | | | 110 | | |
| | |
Measured
Mineral Resources |
| |
Indicated
Mineral Resources |
| |
Measured & Indicated
Mineral Resources |
| |
Inferred
Mineral Resources |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Amount
(100% basis) |
| |
Amount
(51.5% basis) |
| |
Grade /
Qualities |
| |
Amount
(100% basis) |
| |
Amount
(51.5% basis) |
| |
Grade /
Qualities |
| |
Amount
(100% basis) |
| |
Amount
(51.5% basis) |
| |
Grade /
Qualities |
| |
Amount
(100% basis) |
| |
Amount
(51.5% basis) |
| |
Grade /
Qualities |
| ||||||||||||||||||||||||||||||||||||||
|
(in millions of
tonnes) |
| |
(g/t Ag or Au)
(% Pb, Zn or Cu) |
| |
(in millions of
tonnes) |
| |
(g/t Ag or Au)
(% Pb, Zn or Cu) |
| |
(in millions of
tonnes) |
| |
(g/t Ag or Au)
(% Pb, Zn or Cu) |
| |
(in millions of
tonnes) |
| |
(g/t Ag or Au)
(% Pb, Zn or Cu) |
| ||||||||||||||||||||||||||||||||||||||||||||||||||
Ag: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Los Gatos District | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cerro Los Gatos Mine(1)
|
| | | | 5.8 | | | | | | 3.0 | | | | | | 324 | | | | | | 4.6 | | | | | | 2.4 | | | | | | 202 | | | | | | 10.4 | | | | | | 5.4 | | | | | | 269 | | | | | | 3.7 | | | | | | 1.9 | | | | | | 107 | | |
Esther Deposit(2)
|
| | | | — | | | | | | — | | | | | | — | | | | | | 0.46 | | | | | | 0.24 | | | | | | 133 | | | | | | 0.46 | | | | | | 0.24 | | | | | | 133 | | | | | | 2.29 | | | | | | 1.18 | | | | | | 98 | | |
Amapola Deposit(2)
|
| | | | — | | | | | | — | | | | | | — | | | | | | 0.25 | | | | | | 0.13 | | | | | | 135 | | | | | | 0.25 | | | | | | 0.13 | | | | | | 135 | | | | | | 3.44 | | | | | | 1.77 | | | | | | 140 | | |
Total
|
| | | | 5.8 | | | | | | 3.0 | | | | | | 324 | | | | | | 5.3 | | | | | | 2.7 | | | | | | 193 | | | | | | 11.1 | | | | | | 5.8 | | | | | | 260 | | | | | | 9.4 | | | | | | 4.9 | | | | | | 117 | | |
Au: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Los Gatos District | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cerro Los Gatos Mine(1)
|
| | | | 5.8 | | | | | | 3.0 | | | | | | 0.39 | | | | | | 4.6 | | | | | | 2.4 | | | | | | 0.28 | | | | | | 10.4 | | | | | | 5.4 | | | | | | 0.34 | | | | | | 3.7 | | | | | | 1.9 | | | | | | 0.28 | | |
Esther Deposit(2)
|
| | | | — | | | | | | — | | | | | | — | | | | | | 0.46 | | | | | | 0.24 | | | | | | 0.04 | | | | | | 0.46 | | | | | | 0.24 | | | | | | 0.04 | | | | | | 2.29 | | | | | | 1.18 | | | | | | 0.12 | | |
Amapola Deposit(2)
|
| | | | — | | | | | | — | | | | | | — | | | | | | 0.25 | | | | | | 0.13 | | | | | | 0.10 | | | | | | 0.25 | | | | | | 0.13 | | | | | | 0.10 | | | | | | 3.44 | | | | | | 1.77 | | | | | | 0.10 | | |
Total
|
| | | | 5.8 | | | | | | 3.0 | | | | | | 0.39 | | | | | | 5.3 | | | | | | 2.7 | | | | | | 0.25 | | | | | | 11.1 | | | | | | 5.8 | | | | | | 0.32 | | | | | | 9.4 | | | | | | 4.9 | | | | | | 0.18 | | |
Pb: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Los Gatos District | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cerro Los Gatos Mine(1)
|
| | | | 5.8 | | | | | | 3.0 | | | | | | 2.90 | | | | | | 4.6 | | | | | | 2.4 | | | | | | 2.50 | | | | | | 10.4 | | | | | | 5.4 | | | | | | 2.70 | | | | | | 3.7 | | | | | | 1.9 | | | | | | 2.80 | | |
Esther Deposit(2)
|
| | | | — | | | | | | — | | | | | | — | | | | | | 0.46 | | | | | | 0.24 | | | | | | 0.70 | | | | | | 0.46 | | | | | | 0.24 | | | | | | 0.70 | | | | | | 2.29 | | | | | | 1.18 | | | | | | 1.60 | | |
Amapola Deposit(2)
|
| | | | — | | | | | | — | | | | | | — | | | | | | 0.25 | | | | | | 0.13 | | | | | | 0.10 | | | | | | 0.25 | | | | | | 0.13 | | | | | | 0.10 | | | | | | 3.44 | | | | | | 1.77 | | | | | | 0.20 | | |
Total
|
| | | | 5.8 | | | | | | 3.0 | | | | | | 2.90 | | | | | | 5.3 | | | | | | 2.7 | | | | | | 2.2 | | | | | | 11.1 | | | | | | 5.8 | | | | | | 2.6 | | | | | | 9.4 | | | | | | 4.9 | | | | | | 1.6 | | |
Zn: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Los Gatos District | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cerro Los Gatos Mine(1)
|
| | | | 5.8 | | | | | | 3.0 | | | | | | 5.80 | | | | | | 4.6 | | | | | | 2.4 | | | | | | 5.2 | | | | | | 10.4 | | | | | | 5.4 | | | | | | 5.5 | | | | | | 3.7 | | | | | | 1.9 | | | | | | 4.00 | | |
Esther Deposit(2)
|
| | | | — | | | | | | — | | | | | | — | | | | | | 0.46 | | | | | | 0.24 | | | | | | 2.10 | | | | | | 0.46 | | | | | | 0.24 | | | | | | 2.10 | | | | | | 2.29 | | | | | | 1.18 | | | | | | 3.00 | | |
Amapola Deposit(2)
|
| | | | — | | | | | | — | | | | | | — | | | | | | 0.25 | | | | | | 0.13 | | | | | | 0.30 | | | | | | 0.25 | | | | | | 0.13 | | | | | | 0.30 | | | | | | 3.44 | | | | | | 1.77 | | | | | | 0.30 | | |
Total
|
| | | | 5.8 | | | | | | 3.0 | | | | | | 5.8 | | | | | | 5.3 | | | | | | 2.7 | | | | | | 4.7 | | | | | | 11.1 | | | | | | 5.8 | | | | | | 5.2 | | | | | | 9.4 | | | | | | 4.9 | | | | | | 2.4 | | |
Cu: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Los Gatos District | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cerro Los Gatos Mine(1)
|
| | | | 5.8 | | | | | | 3.0 | | | | | | 0.11 | | | | | | 4.6 | | | | | | 2.4 | | | | | | 0.11 | | | | | | 10.4 | | | | | | 5.4 | | | | | | 0.11 | | | | | | 3.7 | | | | | | 1.9 | | | | | | 0.14 | | |
Esther Deposit(2)
|
| | | | — | | | | | | — | | | | | | — | | | | | | 0.46 | | | | | | 0.24 | | | | | | 0.02 | | | | | | 0.46 | | | | | | 0.24 | | | | | | 0.02 | | | | | | 2.29 | | | | | | 1.18 | | | | | | 0.05 | | |
Amapola Deposit(2)
|
| | | | — | | | | | | — | | | | | | — | | | | | | 0.25 | | | | | | 0.13 | | | | | | 0.02 | | | | | | 0.25 | | | | | | 0.13 | | | | | | 0.02 | | | | | | 3.44 | | | | | | 1.77 | | | | | | 0.03 | | |
Total
|
| | | | 5.8 | | | | | | 3.0 | | | | | | 0.11 | | | | | | 5.3 | | | | | | 2.7 | | | | | | 0.10 | | | | | | 11.1 | | | | | | 5.8 | | | | | | 0.10 | | | | | | 9.4 | | | | | | 4.9 | | | | | | 0.08 | | |
| | |
Proven Mineral
Reserves |
| |
Probable Mineral
Reserves |
| |
Total Mineral
Reserves |
| |||||||||||||||||||||||||||||||||||||||||||||
| | |
Amount
(100% basis) |
| |
Amount
(51.5% basis) |
| |
Grades /
Qualities |
| |
Amount
(100% basis) |
| |
Amount
(51.5% basis) |
| |
Grades /
Qualities |
| |
Amount
(100% basis) |
| |
Amount
(51.5% basis) |
| |
Grades /
Qualities |
| |||||||||||||||||||||||||||
| | |
(in millions of
tonnes) |
| |
(g/t Ag or Au)
(% Pb or Zn) |
| |
(in millions of
tonnes) |
| |
(g/t Ag or Au)
(% Pb or Zn) |
| |
(in millions of
tonnes) |
| |
(g/t Ag or Au)
(% Pb or Zn) |
| ||||||||||||||||||||||||||||||||||||
Ag: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Los Gatos District | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cerro Los
Gatos Mine |
| | | | 6.4 | | | | | | 3.3 | | | | | | 332 | | | | | | 3.3 | | | | | | 1.7 | | | | | | 254 | | | | | | 9.6 | | | | | | 5.0 | | | | | | 306 | | |
Total
|
| | | | 6.4 | | | | | | 3.3 | | | | | | 332 | | | | | | 3.3 | | | | | | 1.7 | | | | | | 254 | | | | | | 9.6 | | | | | | 5.0 | | | | | | 306 | | |
Au: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Los Gatos District | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cerro Los
Gatos Mine |
| | | | 6.4 | | | | | | 3.3 | | | | | | 0.36 | | | | | | 3.3 | | | | | | 1.7 | | | | | | 0.34 | | | | | | 9.6 | | | | | | 5.0 | | | | | | 0.35 | | |
Total
|
| | | | 6.4 | | | | | | 3.3 | | | | | | 0.36 | | | | | | 3.3 | | | | | | 1.7 | | | | | | 0.34 | | | | | | 9.6 | | | | | | 5.0 | | | | | | 0.35 | | |
Pb: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Los Gatos District | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cerro Los
Gatos Mine |
| | | | 6.4 | | | | | | 3.3 | | | | | | 2.77 | | | | | | 3.3 | | | | | | 1.7 | | | | | | 2.74 | | | | | | 9.6 | | | | | | 5.0 | | | | | | 2.76 | | |
Total
|
| | | | 6.4 | | | | | | 3.3 | | | | | | 2.77 | | | | | | 3.3 | | | | | | 1.7 | | | | | | 2.74 | | | | | | 9.6 | | | | | | 5.0 | | | | | | 2.76 | | |
Zn: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Los Gatos District | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cerro Los
Gatos Mine |
| | | | 6.4 | | | | | | 3.3 | | | | | | 5.55 | | | | | | 3.3 | | | | | | 1.7 | | | | | | 5.86 | | | | | | 9.6 | | | | | | 5.0 | | | | | | 5.65 | | |
Total
|
| | | | 6.4 | | | | | | 3.3 | | | | | | 5.55 | | | | | | 3.3 | | | | | | 1.7 | | | | | | 5.86 | | | | | | 9.6 | | | | | | 5.0 | | | | | | 5.65 | | |
Concession Name
|
| |
Title Number
|
| |
Date Granted
mm/dd/yy |
| |
Hectares
|
| |
Current
Concessionaire |
| |||||||||
Los Gatos
|
| | | | 231498 | | | | | | 3/4/08 | | | | | | 19,712 | | | |
Minera Plata Real
|
|
Los Gatos 2
|
| | | | 228950 | | | | | | 2/22/07 | | | | | | 10,720 | | | |
Minera Plata Real
|
|
Los Gatos 3
|
| | | | 231076 | | | | | | 1/16/08 | | | | | | 27 | | | |
Minera Plata Real
|
|
Mezcalera
|
| | | | 228249 | | | | | | 10/17/06 | | | | | | 4,992 | | | |
Minera Plata Real
|
|
Mezcalera 2 Fracción I
|
| | | | 228929 | | | | | | 2/21/07 | | | | | | 39 | | | |
Minera Plata Real
|
|
Mezcalera 2 Fracción II
|
| | | | 228930 | | | | | | 2/21/07 | | | | | | 26 | | | |
Minera Plata Real
|
|
Mezcalera 2 Fracción III
|
| | | | 228931 | | | | | | 2/21/07 | | | | | | 29 | | | |
Minera Plata Real
|
|
Paula Adorada
|
| | | | 223392 | | | | | | 12/9/04 | | | | | | 40 | | | |
Minera Plata Real
|
|
La Gavilana
|
| | | | 237137 | | | | | | 11/19/10 | | | | | | 10 | | | |
Minera Plata Real
|
|
San Luis
|
| | | | 236908 | | | | | | 10/5/10 | | | | | | 16 | | | |
Minera Plata Real
|
|
La Gavilana Fracción I
|
| | | | 237461 | | | | | | 12/21/10 | | | | | | 44 | | | |
Minera Plata Real
|
|
Los Estados Fracción I
|
| | | | 237694 | | | | | | 4/25/11 | | | | | | 9 | | | |
Minera Plata Real
|
|
Los Estados Fracción II
|
| | | | 237695 | | | | | | 4/25/11 | | | | | | 44 | | | |
Minera Plata Real
|
|
Los Gatos 4
|
| | | | 238511 | | | | | | 9/23/11 | | | | | | 52,597 | | | |
Minera Plata Real
|
|
San Luis 2
|
| | | | 238694 | | | | | | 10/18/11 | | | | | | 42 | | | |
Minera Plata Real
|
|
Los Veranos
|
| | | | 238573 | | | | | | 9/23/11 | | | | | | 14,740 | | | |
Minera Plata Real
|
|
San Luis 3
|
| | | | 240452 | | | | | | 5/23/12 | | | | | | 0.01 | | | |
Minera Plata Real
|
|
Total | | | | | | | | | | | | | | | | | 103,087 | | | | | |
| | |
Category
|
| |
Tonnes
(million; 100% basis) |
| |
Tonnes
(million; 51.5% basis) |
| |
Ag (g/t)
|
| |
Au (g/t)
|
| |
Pb (%)
|
| |
Zn (%)
|
| |
Cu (%)
|
| |||||||||||||||||||||
Cerro Los Gatos Mine(1)
|
| |
Measured
|
| | | | 5.8 | | | | | | 3.0 | | | | | | 324 | | | | | | 0.39 | | | | | | 2.9 | | | | | | 5.8 | | | | | | 0.11 | | |
| | |
Indicated
|
| | | | 4.6 | | | | | | 2.4 | | | | | | 202 | | | | | | 0.28 | | | | | | 2.5 | | | | | | 5.2 | | | | | | 0.11 | | |
| | |
M&I
|
| | | | 10.4 | | | | | | 5.4 | | | | | | 269 | | | | | | 0.34 | | | | | | 2.7 | | | | | | 5.5 | | | | | | 0.11 | | |
| | |
Inferred
|
| | | | 3.7 | | | | | | 1.9 | | | | | | 107 | | | | | | 0.28 | | | | | | 2.8 | | | | | | 4.0 | | | | | | 0.14 | | |
Esther Deposit(2)
|
| |
Indicated
|
| | | | 0.46 | | | | | | 0.24 | | | | | | 133 | | | | | | 0.04 | | | | | | 0.70 | | | | | | 2.10 | | | | | | 0.02 | | |
| | |
Inferred
|
| | | | 2.29 | | | | | | 1.18 | | | | | | 98 | | | | | | 0.12 | | | | | | 1.60 | | | | | | 3.00 | | | | | | 0.05 | | |
Amapola Deposit(2)
|
| |
Indicated
|
| | | | 0.25 | | | | | | 0.13 | | | | | | 135 | | | | | | 0.10 | | | | | | 0.10 | | | | | | 0.30 | | | | | | 0.02 | | |
| | |
Inferred
|
| | | | 3.44 | | | | | | 1.77 | | | | | | 140 | | | | | | 0.10 | | | | | | 0.20 | | | | | | 0.30 | | | | | | 0.03 | | |
| | |
Category
|
| |
Tonnes
(million; 100% basis) |
| |
Tonnes
(million; 51.5% basis) |
| |
AgEq
(g/t) |
| |
Ag
(g/t) |
| |
Au
(g/t) |
| |
Pb
(%) |
| |
Zn
(%) |
| |
AgEq toz
(millions) |
| |
Ag toz
(millions) |
| |
Au toz
(thousands) |
| |
Pb lbs
(millions) |
| |
Zn lbs
(millions) |
| ||||||||||||||||||||||||||||||||||||
Cerro Los Gatos
Mine |
| |
Measured
|
| | | | 1.3 | | | | | | 0.7 | | | | | | 442 | | | | | | 181 | | | | | | 0.39 | | | | | | 2.4 | | | | | | 4.5 | | | | | | 19 | | | | | | 8 | | | | | | 16 | | | | | | 71 | | | | | | 131 | | |
| | |
Indicated
|
| | | | 2.2 | | | | | | 1.1 | | | | | | 368 | | | | | | 139 | | | | | | 0.23 | | | | | | 2.1 | | | | | | 4.2 | | | | | | 26 | | | | | | 10 | | | | | | 17 | | | | | | 101 | | | | | | 205 | | |
| | |
M&I
|
| | | | 3.5 | | | | | | 1.8 | | | | | | 395 | | | | | | 154 | | | | | | 0.29 | | | | | | 2.2 | | | | | | 4.3 | | | | | | 45 | | | | | | 17 | | | | | | 33 | | | | | | 172 | | | | | | 337 | | |
| | |
Inferred
|
| | | | 3.7 | | | | | | 1.9 | | | | | | 361 | | | | | | 107 | | | | | | 0.28 | | | | | | 2.8 | | | | | | 4.0 | | | | | | 43 | | | | | | 13 | | | | | | 34 | | | | | | 231 | | | | | | 330 | | |
| | |
Tonnes
|
| |
Au (g/t)
|
| |
Ag (g/t)
|
| |
Pb (%)
|
| |
Zn (%)
|
| |||||||||||||||
Production Statistics
|
| | | | 1,019,603 | | | | | | 0.42 | | | | | | 240.27 | | | | | | 2.71 | | | | | | 3.63 | | |
Modelled Reserve Depletion
|
| | | | 1,065,883 | | | | | | 0.47 | | | | | | 244.59 | | | | | | 1.85 | | | | | | 3.27 | | |
Zone
|
| |
Category
|
| |
Tonnes
(millions; 100% basis) |
| |
Tonnes
(millions; 51.5% basis) |
| |
Ag (g/t)
|
| |
Au (g/t)
|
| |
Pb (%)
|
| |
Zn (%)
|
| ||||||||||||||||||
Northwest Zone
|
| |
Proven
|
| | | | 2.6 | | | | | | 1.3 | | | | | | 359 | | | | | | 0.43 | | | | | | 3.09 | | | | | | 5.88 | | |
| | |
Probable
|
| | | | 0.5 | | | | | | 0.3 | | | | | | 333 | | | | | | 0.34 | | | | | | 2.86 | | | | | | 5.88 | | |
Central Zone
|
| |
Proven
|
| | | | 3.8 | | | | | | 1.9 | | | | | | 314 | | | | | | 0.31 | | | | | | 2.55 | | | | | | 5.32 | | |
| | |
Probable
|
| | | | 1.8 | | | | | | 0.9 | | | | | | 299 | | | | | | 0.44 | | | | | | 2.32 | | | | | | 5.82 | | |
Southeast Zone
|
| |
Proven
|
| | | | 0.0 | | | | | | 0.0 | | | | | | 148 | | | | | | 0.16 | | | | | | 3.69 | | | | | | 7.23 | | |
| | |
Probable
|
| | | | 0.6 | | | | | | 0.3 | | | | | | 148 | | | | | | 0.16 | | | | | | 3.69 | | | | | | 7.23 | | |
Southeast Zone Block 2
|
| |
Probable
|
| | | | 0.4 | | | | | | 0.2 | | | | | | 118 | | | | | | 0.17 | | | | | | 3.11 | | | | | | 4.16 | | |
Total (Proven)
|
| | | | | | | 6.4 | | | | | | 3.3 | | | | | | 332 | | | | | | 0.36 | | | | | | 2.77 | | | | | | 5.55 | | |
Total (Probable)
|
| | | | | | | 3.3 | | | | | | 1.7 | | | | | | 254 | | | | | | 0.34 | | | | | | 2.74 | | | | | | 5.86 | | |
Total (Proven & Probable)
|
| | | | | | | 9.6 | | | | | | 5.0 | | | | | | 306 | | | | | | 0.35 | | | | | | 2.76 | | | | | | 5.65 | | |
Description
|
| |
Units
|
| |
Sustaining
Capital |
| ||||||
Direct Costs | | | | | | | | | | | | | |
Mine & Surface Infrastructure
|
| | | $ | 000s | | | | | | 266,398 | | |
Direct Costs
|
| | | $ | 000s | | | | | | 266,398 | | |
Indirect Costs | | | | | | | | | | | | | |
Mine & Surface Infrastructure
|
| | | $ | 000s | | | | | | 932 | | |
Indirect Costs
|
| | | $ | 000s | | | | | | 932 | | |
Total Sustaining Capital
|
| | | $ | 000s | | | | | | 267,330 | | |
Description
|
| |
Unit Cost
($/meter) |
| |
Unit Cost
($/t-milled) |
| ||||||
Mine, Surface and G&A
|
| | | | 26.47 | | | | | | 83.58 | | |
LOM Operating
|
| | | | — | | | | | | 83.58 | | |
|
Mine Life
|
| |
years
|
| | | | 11 | | |
|
Ore Tonnage
|
| |
kt
|
| | | | 9,618 | | |
| | |
Average Grade
Processed |
| | | | | | | |
Life-of-Mine Payable Production
|
| |
Avg. Annual
PayableProduction (51.5% basis) |
| |||
| | |
(100% basis)
|
| |
(51.5% basis)
|
| |
(100% basis)
|
| |||||||||
Production Statistics | | | | | | | | | | | | | | | | | | | |
Silver
|
| |
305 g/t
|
| |
72.0 Moz
|
| |
37.1 Moz
|
| |
6.5 Moz
|
| |
3.4 Moz
|
| |||
Zinc
|
| |
5.7%
|
| |
679 Mlb
|
| |
350 Mlb
|
| |
62 Mlb
|
| |
32 Mlb
|
| |||
Lead
|
| |
2.8%
|
| |
442 Mlb
|
| |
228 Mlb
|
| |
40 Mlb
|
| |
21 Mlb
|
| |||
Gold
|
| |
0.35 g/t
|
| |
45.5 Koz
|
| |
23.4 Koz
|
| |
4.1 Koz
|
| |
2.1 Koz
|
| |||
Silver Equivalent
|
| |
642 g/t
|
| |
134.7 Moz
|
| |
69.4 Moz
|
| |
12.2 Moz
|
| |
6.3 Moz
|
| |||
Life-of-Mine Cost Metrics | | | | | | | | | | | | | | | | | | | |
Total Sustaining Capital Costs
|
| |
$ millions
|
| | | $ | 267 | | | | | | | | | | | |
Operating Costs
|
| |
$/t-milled
|
| | | $ | 83.58 | | | | | | | | | | | |
TC / RC, Penalties and Freight
Costs |
| |
$/mt
|
| | | $ | 51.90 | | | | | | | | | | | |
Royalties
|
| |
$/mt
|
| | | $ | 1.50 | | | | | | | | | | | |
Life-of-Mine By-Product Costs | | | | | | | | | | | | | | | | | | | |
AISC
|
| |
$/oz Ag
|
| | | $ | 5.47 | | | | | | | | | | | |
Life-of-Mine Co-Product Costs | | | | | | | | | | | | | | | | | | | |
AISC
|
| |
$/oz AgEq
|
| | | $ | 11.77 | | | | | | | | | | | |
Project Economics | | | | | | | | | | | | | | | | | | | |
NPV (post-tax; 5.0%)
|
| |
$ millions
|
| | | $ | 653 | | | | | | | | | | | |
Mineralized Zones
|
| |
Length (m)
|
| |
Ag (g/t)
|
| |
Pb (%)
|
| |
Zn (%)
|
| ||||||||||||
Boca de Leon
|
| | | | 2.2 | | | | | | 90.6 | | | | | | 5.0 | | | | | | 0.8 | | |
Cieneguita
|
| | | | 1.3 | | | | | | 62.4 | | | | | | 5.4 | | | | | | 0.9 | | |
El Lince
|
| | | | 4.0 | | | | | | 62.2 | | | | | | 0.0 | | | | | | 0.1 | | |
El Rodeo
|
| | | | 0.8 | | | | | | 61.5 | | | | | | 3.4 | | | | | | 4.0 | | |
La Paula
|
| | | | 4.0 | | | | | | 180.0 | | | | | | 0.1 | | | | | | 0.1 | | |
Los Torunos
|
| | | | 1.8 | | | | | | 34.2 | | | | | | 2.6 | | | | | | 0.9 | | |
Mezcalera
|
| | | | 2.0 | | | | | | 59.4 | | | | | | 0.1 | | | | | | 0.1 | | |
San Agustin
|
| | | | 1.3 | | | | | | 148.0 | | | | | | 1.2 | | | | | | 2.3 | | |
San Luis
|
| | | | 2.0 | | | | | | 271.0 | | | | | | 0.3 | | | | | | 0.1 | | |
| | |
(a)
|
| |
(b)
|
| |
(c)
|
| |||||||||
Plan Category
|
| |
Number of securities to
be issued upon exercise of outstanding options, warrants and rights |
| |
Weighted-average
exercise price of outstanding options, warrants and rights |
| |
Number of securities
remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) |
| |||||||||
Equity compensation plans not approved
by security holders: |
| | | | — | | | | | | — | | | | | | — | | |
Equity compensation plans approved by security holders:
|
| | | | | | | | | | | | | | | | | | |
Equity Incentive Compensation
Plan(1) |
| | | | | | | | | | | | | | | | | | |
Deferred stock units(2)
|
| | | | 182,714 | | | | | | N/A | | | | | | | | |
Stock options(3)
|
| | | | 5,455,606 | | | | | $ | 12.48 | | | | | | | | |
Total for Equity Incentive Compensation
Plan |
| | | | 5,638,320 | | | | | $ | — | | | | | | 9,361,680 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Expenses | | | | | | | | | | | | | |
Exploration
|
| | | $ | 785 | | | | | $ | 923 | | |
General and administrative
|
| | | | 7,765 | | | | | | 2,903 | | |
Amortization
|
| | | | 30 | | | | | | 34 | | |
Total expenses
|
| | | | 8,580 | | | | | | 3,860 | | |
Other expense (income) | | | | | | | | | | | | | |
Dilution loss in affiliates
|
| | | | — | | | | | | 11,231 | | |
Equity loss in affiliates
|
| | | | 17,585 | | | | | | 12,865 | | |
Arrangement fees
|
| | | | 4,843 | | | | | | 2,988 | | |
Interest expense
|
| | | | 4,047 | | | | | | — | | |
Other income
|
| | | | (28) | | | | | | (36) | | |
Net other expense
|
| | | | 26,447 | | | | | | 27,048 | | |
Net loss from continuing operations
|
| | | $ | 35,027 | | | | | $ | 30,908 | | |
Loss from discontinued operations
|
| | | | 5,414 | | | | | | 6,910 | | |
Net loss
|
| | | $ | 40,441 | | | | | $ | 37,818 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Net cash provided by (used by) | | | | | | | | | | | | | |
Operating activities from continuing operations
|
| | | $ | (18,388) | | | | | $ | (12,295) | | |
Investing activities from continuing operations
|
| | | | (12,129) | | | | | | (21,905) | | |
Financing activities from continuing operations
|
| | | | 172,464 | | | | | | 39,828 | | |
Total change in cash
|
| | | $ | 141,947 | | | | | $ | 5,628 | | |
| | |
December 31,
2020 |
| |
December 31,
2019 |
| ||||||
ASSETS
|
| | | | | | | | | | | | |
Current Assets
|
| | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 1,676 | | | | | $ | 1,302 | | |
Receivables
|
| | | | 3,988 | | | | | | 5,655 | | |
Inventories
|
| | | | 10,315 | | | | | | 11,374 | | |
VAT receivable
|
| | | | 50,732 | | | | | | 50,184 | | |
Other current assets
|
| | | | 2,891 | | | | | | 1,672 | | |
Total current assets
|
| | | | 69,602 | | | | | | 70,187 | | |
Non-Current Assets
|
| | | | | | | | | | | | |
Mine development, net
|
| | | | 202,874 | | | | | | 182,602 | | |
Property, plant and equipment, net
|
| | | | 196,942 | | | | | | 216,131 | | |
Total non-current assets
|
| | | | 399,816 | | | | | | 398,733 | | |
Total Assets
|
| | | $ | 469,418 | | | | | $ | 468,920 | | |
LIABILITIES AND OWNERS’ CAPITAL
|
| | | | | | | | | | | | |
Current Liabilities
|
| | | | | | | | | | | | |
Accounts payable and accrued liabilities
|
| | | $ | 35,767 | | | | | $ | 43,287 | | |
Related party payable
|
| | | | 1,703 | | | | | | 6,875 | | |
Accrued interest
|
| | | | 101 | | | | | | 885 | | |
Unearned revenue
|
| | | | 3,276 | | | | | | — | | |
Equipment loans
|
| | | | 7,084 | | | | | | 6,948 | | |
Dowa Term Loan
|
| | | | 31,826 | | | | | | — | | |
Working Capital Facility
|
| | | | 60,000 | | | | | | — | | |
Total current liabilities
|
| | | | 139,757 | | | | | | 57,995 | | |
Non-Current Liabilities
|
| | | | | | | | | | | | |
Dowa Term Loan
|
| | | | 187,767 | | | | | | 217,796 | | |
Working Capital Facility
|
| | | | — | | | | | | 60,000 | | |
Equipment loans
|
| | | | 6,120 | | | | | | 12,916 | | |
Reclamation obligations
|
| | | | 12,162 | | | | | | 11,314 | | |
Total non-current liabilities
|
| | | | 206,049 | | | | | | 302,026 | | |
Owners’ Capital
|
| | | | | | | | | | | | |
Capital contributions
|
| | | | 271,368 | | | | | | 237,905 | | |
Paid-in capital
|
| | | | 16,366 | | | | | | 7,400 | | |
Accumulated deficit
|
| | | | (164,122) | | | | | | (136,406) | | |
Total owners’ capital
|
| | | | 123,612 | | | | | | 108,899 | | |
Total Liabilities and Owners’ Capital
|
| | | $ | 469,418 | | | | | $ | 468,920 | | |
| | |
Twelve Months Ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Sales
|
| | | $ | 121,470 | | | | | $ | 36,508 | | |
Expenses | | | | | | | | | | | | | |
Cost of sales
|
| | | | 65,005 | | | | | | 30,339 | | |
Royalties
|
| | | | 2,148 | | | | | | 184 | | |
Exploration
|
| | | | 841 | | | | | | 208 | | |
General and administrative
|
| | | | 9,718 | | | | | | 2,587 | | |
Depreciation, depletion and amortization
|
| | | | 44,904 | | | | | | 15,460 | | |
Other
|
| | | | 3,416 | | | | | | — | | |
| | | | | 126,032 | | | | | | 48,778 | | |
Other (income) expense | | | | | | | | | | | | | |
Interest expense
|
| | | | 12,484 | | | | | | 5,107 | | |
Arrangement fee
|
| | | | 8,888 | | | | | | 3,524 | | |
Accretion expense
|
| | | | 849 | | | | | | 789 | | |
Other (income) expense
|
| | | | (109) | | | | | | 239 | | |
Foreign exchange loss
|
| | | | 1,042 | | | | | | 174 | | |
| | | | | 23,154 | | | | | | 9,833 | | |
Net Loss
|
| | | $ | (27,716) | | | | | $ | (22,103) | | |
| | |
Twelve Months Ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Net cash provided by (used by) | | | | | | | | | | | | | |
Operating activities
|
| | | $ | 47,872 | | | | | $ | (16,008) | | |
Investing activities
|
| | | | (64,436) | | | | | | (123,078) | | |
Financing activities
|
| | | | 16,938 | | | | | | 129,157 | | |
Total change in cash
|
| | | $ | 374 | | | | | $ | (9,929) | | |
| Gatos Silver, Inc. Consolidated Financial Statements | | | | | | | |
| | | | | 68 | | | |
| | | | | 69 | | | |
| | | | | 70 | | | |
| | | | | 71 | | | |
| | | | | 72 | | | |
| | | | | 73 | | | |
| Los Gatos Joint Venture Combined Financial Statements | | | | | | | |
| | | | | 90 | | | |
| | | | | 91 | | | |
| | | | | 92 | | | |
| | | | | 93 | | | |
| | | | | 94 | | | |
| | | | | 95 | | |
| | |
2020
|
| |
2019
|
| ||||||
ASSETS | | | | | | | | | | | | | |
Current Assets | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 150,146 | | | | | $ | 8,581 | | |
Deferred financing costs
|
| | | | — | | | | | | 1,777 | | |
Related party receivables
|
| | | | 1,727 | | | | | | 6,422 | | |
Other current assets
|
| | | | 3,879 | | | | | | 552 | | |
Current assets of discontinued operations
|
| | | | — | | | | | | 1,123 | | |
Total current assets
|
| | | | 155,752 | | | | | | 18,455 | | |
Non-Current Assets | | | | | | | | | | | | | |
Investment in affiliates
|
| | | | 109,597 | | | | | | 105,396 | | |
Property, plant and equipment, net of accumulated depreciation of $948 and $917, respectively
|
| | | | 61 | | | | | | 92 | | |
Non-current assets of discontinued operations
|
| | | | — | | | | | | 30,352 | | |
Total Assets
|
| | | $ | 265,410 | | | | | $ | 154,295 | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | | | | |
Current Liabilities | | | | | | | | | | | | | |
Accounts payable and other accrued liabilities
|
| | | $ | 4,024 | | | | | $ | 2,817 | | |
Current liabilities of discontinued operations
|
| | | | — | | | | | | 648 | | |
Total current liabilities
|
| | | $ | 4,024 | | | | | $ | 3,465 | | |
Non-Current Liabilities | | | | | | | | | | | | | |
Non-current liabilities of discontinued operations
|
| | | | — | | | | | | 1,439 | | |
Shareholders’ Equity | | | | | | | | | | | | | |
Common Stock, $0.001 par value; 700,000,000 shares authorized;
59,183,076 and 40,323,430 shares outstanding as of December 31, 2020 and December 31, 2019(1) |
| | | | 108 | | | | | | 80 | | |
Paid-in capital
|
| | | | 409,728 | | | | | | 375,921 | | |
Accumulated deficit
|
| | | | (147,423) | | | | | | (225,583) | | |
Treasury stock, at cost, 144,589 shares as of December 31, 2020 and
December 31, 2019(1) |
| | | | (1,027) | | | | | | (1,027) | | |
Total shareholders’ equity
|
| | | | 261,386 | | | | | | 149,391 | | |
Total Liabilities and Shareholders’ Equity
|
| | | $ | 265,410 | | | | | $ | 154,295 | | |
| | |
2020
|
| |
2019
|
| ||||||
Expenses | | | | | | | | | | | | | |
Exploration
|
| | | $ | 785 | | | | | $ | 923 | | |
General and administrative
|
| | | | 7,765 | | | | | | 2,903 | | |
Amortization
|
| | | | 30 | | | | | | 34 | | |
Total expenses
|
| | | | 8,580 | | | | | | 3,860 | | |
Other expense (income) | | | | | | | | | | | | | |
Dilution loss in affiliates
|
| | | | — | | | | | | 11,231 | | |
Equity loss in affiliates
|
| | | | 17,585 | | | | | | 12,865 | | |
Arrangement fees
|
| | | | 4,843 | | | | | | 2,988 | | |
Interest expense
|
| | | | 4,047 | | | | | | — | | |
Other income
|
| | | | (28) | | | | | | (36) | | |
Net other expense
|
| | | | 26,447 | | | | | | 27,048 | | |
Net loss from continuing operations
|
| | | $ | 35,027 | | | | | $ | 30,908 | | |
Loss from discontinued operations
|
| | | | 5,414 | | | | | | 6,910 | | |
Net loss
|
| | | $ | 40,441 | | | | | $ | 37,818 | | |
Other comprehensive (gain) loss | | | | | | | | | | | | | |
Unrealized gain on securities, net of tax, from discontinued operations
|
| | | | — | | | | | | (32) | | |
Comprehensive loss from continuing operations
|
| | | | 35,027 | | | | | | 30,908 | | |
Comprehensive loss from discontinued operations
|
| | | | 5,414 | | | | | | 6,878 | | |
Comprehensive loss
|
| | | $ | 40,441 | | | | | $ | 37,786 | | |
Net loss per share: | | | | | | | | | | | | | |
From continuing operations, basic and diluted(1)
|
| | | $ | 0.80 | | | | | $ | 0.79 | | |
From discontinued operations, basic and diluted(1)
|
| | | $ | 0.13 | | | | | $ | 0.18 | | |
Basic and diluted(1)
|
| | | $ | 0.93 | | | | | $ | 0.97 | | |
Weighted average shares outstanding: | | | | | | | | | | | | | |
Basic and diluted(1)
|
| | | | 43,655,601 | | | | | | 38,967,038 | | |
| | |
Number(1)
|
| |
Amount
|
| |
Paid-in
Capital |
| |
Accumulated
Deficit |
| |
Other
Comprehensive Income (Loss) |
| |
Total
Shareholders’ Equity |
| ||||||||||||||||||||||||||||||
|
Common
Stock |
| |
Treasury
Stock |
| |
Common
Stock |
| |
Treasury
Stock |
| ||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2018
|
| | | | 36,951,274 | | | | | | 144,589 | | | | | $ | 74 | | | | | $ | (1,027) | | | | | $ | 331,802 | | | | | $ | (187,765) | | | | | $ | (32) | | | | | $ | 143,052 | | |
Stock-based compensation
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,219 | | | | | | — | | | | | | — | | | | | | 3,219 | | |
Issuance of common stock
|
| | | | 3,372,156 | | | | | | — | | | | | | 6 | | | | | | — | | | | | | 40,459 | | | | | | — | | | | | | — | | | | | | 40,465 | | |
Unrealized gain on investments, net of tax
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 32 | | | | | | 32 | | |
Deferred share unit compensation
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 491 | | | | | | — | | | | | | — | | | | | | 491 | | |
Other
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (50) | | | | | | — | | | | | | — | | | | | | (50) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (37,818) | | | | | | — | | | | | | (37,818) | | |
Balance at December 31, 2019
|
| | | | 40,323,430 | | | | | | 144,589 | | | | | $ | 80 | | | | | $ | (1,027) | | | | | $ | 375,921 | | | | | $ | (225,583) | | | | | $ | — | | | | | $ | 149,391 | | |
Stock-based compensation
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 4,563 | | | | | | — | | | | | | — | | | | | | 4,563 | | |
Issuance of common stock, net
|
| | | | 24,644,500 | | | | | | — | | | | | | 25 | | | | | | — | | | | | | 155,612 | | | | | | — | | | | | | — | | | | | | 155,637 | | |
Convertible note conversion
|
| | | | 2,712,003 | | | | | | — | | | | | | 3 | | | | | | — | | | | | | 18,981 | | | | | | — | | | | | | — | | | | | | 18,984 | | |
Deferred salary conversion
|
| | | | 47,061 | | | | | | — | | | | | | — | | | | | | — | | | | | | 329 | | | | | | — | | | | | | — | | | | | | 329 | | |
Deferred share unit compensation
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 61 | | | | | | — | | | | | | — | | | | | | 61 | | |
Distribution from Reorganization
|
| | | | (8,543,918) | | | | | | — | | | | | | — | | | | | | — | | | | | | (145,780) | | | | | | 118,601 | | | | | | — | | | | | | (27,179) | | |
Other
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 41 | | | | | | — | | | | | | — | | | | | | 41 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (40,441) | | | | | | — | | | | | | (40,441) | | |
Balance at December 31, 2020
|
| | | | 59,183,076 | | | | | | 144,589 | | | | | $ | 108 | | | | | $ | (1,027) | | | | | $ | 409,728 | | | | | $ | (147,423) | | | | | $ | — | | | | | $ | 261,386 | | |
| | |
2020
|
| |
2019
|
| ||||||
OPERATING ACTIVITIES | | | | | | | | | | | | | |
Net loss
|
| | | $ | (40,441) | | | | | $ | (37,818) | | |
Plus net loss from discontinued operations
|
| | | $ | 5,414 | | | | | $ | 6,910 | | |
Adjustments to reconcile net loss to net cash used by operating activities: | | | | | | | | | | | | | |
Amortization
|
| | | | 30 | | | | | | 34 | | |
Dilution loss in affiliates
|
| | | | — | | | | | | 11,231 | | |
Stock compensation expense
|
| | | | 4,368 | | | | | | 3,007 | | |
Equity loss in affiliates
|
| | | | 17,585 | | | | | | 12,865 | | |
Interest expense on convertible notes beneficial conversion terms
|
| | | | 3,984 | | | | | | — | | |
Other
|
| | | | 329 | | | | | | — | | |
Changes in operating assets and liabilities: | | | | | | | | | | | | | |
Receivables from related-party
|
| | | | (4,752) | | | | | | (5,078) | | |
Accounts payable and other accrued liabilities
|
| | | | 2,027 | | | | | | 549 | | |
Other current assets
|
| | | | (3,479) | | | | | | 22 | | |
Operating cash flows from discontinued operations
|
| | | | (3,453) | | | | | | (4,017) | | |
Net cash used by operating activities
|
| | | | (18,388) | | | | | | (12,295) | | |
INVESTING ACTIVITIES | | | | | | | | | | | | | |
Transfers of restricted cash to cash
|
| | | | 151 | | | | | | — | | |
Investment in affiliates
|
| | | | (12,298) | | | | | | (21,371) | | |
Investing cash flows from discontinued operations
|
| | | | 18 | | | | | | (534) | | |
Net cash used by investing activities
|
| | | | (12,129) | | | | | | (21,905) | | |
FINANCING ACTIVITIES | | | | | | | | | | | | | |
Issuance of common stock
|
| | | | 160,436 | | | | | | 40,465 | | |
Related-party convertible notes
|
| | | | 15,000 | | | | | | — | | |
Deferred financing costs
|
| | | | (4,039) | | | | | | (637) | | |
Other
|
| | | | 260 | | | | | | — | | |
Financing cash flows from discontinued operations
|
| | | | 807 | | | | | | — | | |
Net cash provided by financing activities
|
| | | | 172,464 | | | | | | 39,828 | | |
Net increase in cash and cash equivalents
|
| | | | 141,947 | | | | | | 5,628 | | |
Cash and cash equivalents, beginning of period
|
| | | | 9,085 | | | | | | 3,457 | | |
Cash and cash equivalents, end of period
|
| | | | 151,032 | | | | | | 9,085 | | |
Less cash of discontinued operations
|
| | | | 886 | | | | | | 504 | | |
Cash of continuing operations, end of period
|
| | | $ | 150,146 | | | | | $ | 8,581 | | |
Supplemental disclosure of noncash transactions: | | | | | | | | | | | | | |
Director Compensation
|
| | | $ | 61 | | | | | $ | 491 | | |
Deferred financing costs included in accrued liabilties
|
| | | $ | — | | | | | $ | 1,132 | | |
Conversion of related party receivable into investment in affiliate
|
| | | $ | 9,448 | | | | | $ | — | | |
Conversion of convertible notes to equity
|
| | | $ | 15,000 | | | | | $ | — | | |
Deferred financing costs included in accounts payable and accrued liabilties
|
| | | $ | 1,118 | | | | | $ | — | | |
Underwriting fees recorded to deferred financing costs
|
| | | $ | (12,076) | | | | | $ | — | | |
Deferred financing costs charged to equity
|
| | | $ | 16,874 | | | | | $ | — | | |
| | |
December 31,
2020 |
| |
December 31,
2019 |
| ||||||
Value added tax receivable
|
| | | $ | 318 | | | | | $ | 213 | | |
Restricted cash
|
| | | | — | | | | | | 151 | | |
Prepaid expenses
|
| | | | 3,560 | | | | | | 157 | | |
Deposits and other
|
| | | | 1 | | | | | | 31 | | |
Total other current assets
|
| | | $ | 3,879 | | | | | $ | 552 | | |
| | |
December 31,
2020 |
| |
December 31,
2019 |
| ||||||
Accounts payable
|
| | | $ | 560 | | | | | $ | 60 | | |
Accrued expenses
|
| | | | 1,240 | | | | | | 1,488 | | |
Accrued compensation
|
| | | | 1,964 | | | | | | 1,269 | | |
Other
|
| | | | 260 | | | | | | — | | |
Total accounts payable and other accrued liabilities
|
| | | $ | 4,024 | | | | | $ | 2,817 | | |
Recipient
|
| |
Options Granted
|
| |
Vesting Start Date
|
| |
Grant Date
|
|
Employees | | |
508,500
|
| |
December 14, 2018
|
| |
May 3, 2019
|
|
Directors | | |
93,000
|
| |
December 14, 2018
|
| |
May 3, 2019
|
|
Employees | | |
416,000
|
| |
January 20, 2020
|
| |
January 20, 2020
|
|
Directors | | |
197,666
|
| |
January 20, 2020
|
| |
January 20, 2020
|
|
Employees | | |
164,000
|
| |
January 20, 2020
|
| |
January 30, 2020
|
|
Directors | | |
20,667
|
| |
March 1, 2020
|
| |
March 1, 2020
|
|
Employees | | |
12,000
|
| |
July 31, 2020
|
| |
July 31, 2020
|
|
Employees | | |
1,127,500
|
| |
October 27, 2020
|
| |
October 27, 2020
|
|
| | |
Grant Date
|
| |||||||||||||||||||||||||||
| | |
May 2019
|
| |
Jan. 2020
|
| |
Mar. 2020
|
| |
Jul. 2020
|
| |
Oct. 2020
|
| |||||||||||||||
Risk-free interest rate
|
| | | | 2.38% | | | | | | 1.63% | | | | | | 1.63% | | | | | | 1.63% | | | | | | 0.51% | | |
Dividend yield
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Estimated volatility
|
| | | | 66.80% | | | | | | 62.20% | | | | | | 62.20% | | | | | | 62.20% | | | | | | 62.50% | | |
Expected option life
|
| |
6 years
|
| |
6 years
|
| |
6 years
|
| |
6 years
|
| |
6 years
|
|
| | |
December 31,
|
| |||
| | |
2020
|
| |
2019
|
|
Risk-free interest rate
|
| |
0.51%
|
| |
1.76%
|
|
Dividend yield
|
| |
—
|
| |
—
|
|
Estimated volatility
|
| |
62.09%
|
| |
63.60%
|
|
Expected option life
|
| |
6 years
|
| |
6 years
|
|
Employee & Director Options
|
| |
Shares
|
| |
Weighted-
Average Exercise Price |
| |
Aggregate
Intrinsic Value |
| |
Weighted-
Average Remaining Life (Years) |
| ||||||||||||
Outstanding at December 31, 2019
|
| | | | 3,551,186 | | | | | $ | 14.39 | | | | | | | | | | | | 5.96 | | |
Granted
|
| | | | 1,937,833 | | | | | $ | 9.09 | | | | | | | | | | | | | | |
Exercised
|
| | | | — | | | | | $ | — | | | | | | | | | | | | | | |
Forfeited
|
| | | | (77,089) | | | | | $ | 12.46 | | | | | | | | | | | | | | |
Outstanding at December 31, 2020
|
| | | | 5,411,930 | | | | | $ | 12.52 | | | | | $ | 17,516 | | | | | | 6.62 | | |
Vested at December 31, 2020
|
| | | | 3,251,211 | | | | | $ | 14.71 | | | | | $ | 9,292 | | | | | | 4.87 | | |
LGJV Personnel Options
|
| |
Shares
|
| |
Weighted-
Average Exercise Price |
| |
Aggregate
Intrinsic Value |
| |
Weighted-
Average Remaining Life (Years) |
| ||||||||||||
Outstanding at December 31, 2019
|
| | | | 54,595 | | | | | $ | 7.37 | | | | | | | | | | | | 6.11 | | |
Granted
|
| | | | — | | | | | $ | — | | | | | | | | | | | | | | |
Exercised
|
| | | | — | | | | | $ | — | | | | | | | | | | | | | | |
Forfeited
|
| | | | (10,919) | | | | | $ | 7.92 | | | | | | | | | | | | | | |
Outstanding at December 31, 2020
|
| | | | 43,676 | | | | | $ | 7.23 | | | | | $ | 253 | | | | | | 4.91 | | |
Vested at December 31, 2020
|
| | | | 43,676 | | | | | $ | 7.23 | | | | | $ | 253 | | | | | | 4.91 | | |
| | |
2020
|
| |
2019
|
| ||||||
U.S.
|
| | | $ | (32,964) | | | | | $ | (28,761) | | |
Mexico
|
| | | | (2,063) | | | | | | (2,146) | | |
Total
|
| | | $ | (35,027) | | | | | $ | (30,907) | | |
| | |
2020
|
| |
2019
|
| ||||||
Tax benefit from continuing operations
|
| | | $ | 7,356 | | | | | $ | 6,491 | | |
State tax benefit from continuing operations
|
| | | | 1,577 | | | | | | 1,052 | | |
Nondeductible expenses
|
| | | | (773) | | | | | | (2) | | |
Change in valuation allowance
|
| | | | (8,707) | | | | | | (10,111) | | |
Effect of tax rate change
|
| | | | 2,991 | | | | | | 666 | | |
Effect of foreign tax rate differential
|
| | | | 49 | | | | | | 125 | | |
Effect of reorganization on net operating loss
|
| | | | (2,186) | | | | | | 2,100 | | |
Other
|
| | | | (307) | | | | | | (321) | | |
Total income tax benefit
|
| | | $ | — | | | | | $ | — | | |
| | |
2020
|
| |
2019
|
| ||||||
Deferred tax assets
|
| | | | | | | | | | | | |
Accrued compensation
|
| | | $ | 457 | | | | | $ | 259 | | |
Deferred share unit awards
|
| | | | 218 | | | | | | 172 | | |
Other accrued liabilities
|
| | | | 26 | | | | | | 24 | | |
Mineral properties
|
| | | | 2,487 | | | | | | 2,332 | | |
Exploration
|
| | | | — | | | | | | 48 | | |
Operating loss carryforward
|
| | | | 30,729 | | | | | | 29,068 | | |
Foreign deferred tax assets
|
| | | | 14,091 | | | | | | 8,736 | | |
Stock options
|
| | | | 8,182 | | | | | | 6,605 | | |
Loan fees
|
| | | | 1,303 | | | | | | 592 | | |
Other
|
| | | | 27 | | | | | | 26 | | |
Valuation allowances
|
| | | | (56,320) | | | | | | (47,600) | | |
Total deferred tax assets
|
| | | | 1,200 | | | | | | 262 | | |
Deferred tax liabilities | | | | | | | | | | | | | |
Property, plant and equipment
|
| | | | (276) | | | | | | (253) | | |
Exploration and development
|
| | | | (16) | | | | | | — | | |
Prepaid expenses
|
| | | | (908) | | | | | | (9) | | |
Total deferred tax liabilities
|
| | | | (1,200) | | | | | | (262) | | |
Net deferred income tax assets (liabilities)
|
| | | $ | — | | | | | $ | — | | |
| | |
December 31,
2019 |
| |||
Current Assets of Discontinued Operations | | | | | | | |
Cash and cash equivalents
|
| | | $ | 504 | | |
Restricted Cash
|
| | | | 315 | | |
Materials and supplies inventory
|
| | | | 103 | | |
Prepaid expenses
|
| | | | 201 | | |
Total current assets of discontinued operations
|
| | | $ | 1,123 | | |
Non-Current Assets of Discontinued Operations | | | | | | | |
Metals inventory
|
| | | $ | 250 | | |
Property, plant and equipment, net(1)
|
| | | | 30,102 | | |
Total non-current assets of discontinued operations
|
| | | $ | 30,352 | | |
Current Liabilities of Discontinued Operations | | | | | | | |
Accounts payable and other accrued liabilities
|
| | | $ | 341 | | |
Other
|
| | | | 307 | | |
Total current liabilities of discontinued operations
|
| | | $ | 648 | | |
Non-Current Liabilities of Discontinued Operations | | | | | | | |
Reclamation obligations
|
| | | | 1,439 | | |
Total non-current liabilities of discontinued operations
|
| | | $ | 1,439 | | |
| | |
December 31,
2019 |
| |||
Mineral properties
|
| | | $ | 18,203 | | |
Plant and equipment
|
| | | | 13,621 | | |
Land
|
| | | | 1,814 | | |
Buildings, infrastructure and improvements
|
| | | | 16,798 | | |
Furniture, fixtures and computers
|
| | | | 556 | | |
Property, plant and equipment at cost
|
| | | | 50,992 | | |
Less accumulated amortization
|
| | | | (20,890) | | |
Property, plant and equipment, net
|
| | | $ | 30,102 | | |
| | |
December 31,
2020 |
| |
December 31,
2019 |
| ||||||
Operating Expenses of Discontinued Operations | | | | | | | | | | | | | |
Exploration
|
| | | $ | 352 | | | | | $ | 325 | | |
Pre-development
|
| | | | 1,700 | | | | | | 2,317 | | |
General and administrative
|
| | | | 1,431 | | | | | | 1,943 | | |
Amortization
|
| | | | 1,935 | | | | | | 2,335 | | |
Total expenses
|
| | | | 5,418 | | | | | | 6,920 | | |
Other Income of Discontinued Operations | | | | | | | | | | | | | |
Other income
|
| | | | (4) | | | | | | (10) | | |
Net Loss of Discontinued Operations
|
| | | $ | 5,414 | | | | | $ | 6,910 | | |
Other Comprehensive Gain of Discontinued Operations | | | | | | | | | | | | | |
Unrealized gain on securities, net of tax
|
| | | | — | | | | | | (32) | | |
Comprehensive Loss of Discontinued Operations
|
| | | $ | 5,414 | | | | | $ | 6,878 | | |
| | |
December 31,
2020 |
| |
December 31,
2019 |
| ||||||
Discontinued Operating Activities | | | | | | | | | | | | | |
Net loss
|
| | | $ | (5,414) | | | | | $ | (6,910) | | |
Adjustments to reconcile net loss to net cash used by operating activities: | | | | | | | | | | | | | |
Amortization
|
| | | | 1,935 | | | | | | 2,335 | | |
Stock compensation expense
|
| | | | 195 | | | | | | 212 | | |
Accretion expense
|
| | | | 91 | | | | | | 102 | | |
Other
|
| | | | — | | | | | | 63 | | |
Changes in operating assets and liabilities: | | | | | | | | | | | | | |
Accounts payable and other accrued liabilities
|
| | | | (256) | | | | | | 97 | | |
Materials and supplies inventory
|
| | | | (2) | | | | | | 67 | | |
Other current assets
|
| | | | (2) | | | | | | 17 | | |
Net cash used by operating activities of discontinued operations
|
| | | | (3,453) | | | | | | (4,017) | | |
Investing Activities of Discontinued Operations | | | | | | | | | | | | | |
Purchase of property, plant and equipment
|
| | | | (22) | | | | | | (534) | | |
Transfers of restricted cash to cash
|
| | | | 40 | | | | | | — | | |
Net cash provided by (used by) investing activities of discontinued operations
|
| | | | 18 | | | | | | (534) | | |
Financing Activities of Discontinued Operations | | | | | | | | | | | | | |
Related-party convertible notes
|
| | | | 500 | | | | | | — | | |
PPP Loan proceeds
|
| | | | 307 | | | | | | — | | |
Net cash provided by financing activities of discontinued operations
|
| | | | 807 | | | | | | — | | |
| | |
Year Ended December 31, 2020
|
| |
Year Ended December 31, 2019
|
| ||||||||||||||||||||||||||||||
| | |
Mexico
|
| |
Corporate
|
| |
Total
|
| |
Mexico
|
| |
Corporate
|
| |
Total
|
| ||||||||||||||||||
Exploration
|
| | | $ | 785 | | | | | $ | — | | | | | $ | 785 | | | | | $ | 923 | | | | | $ | — | | | | | $ | 923 | | |
General and administrative
|
| | | | 549 | | | | | | 7,216 | | | | | | 7,765 | | | | | | 296 | | | | | | 2,607 | | | | | | 2,903 | | |
Amortization
|
| | | | — | | | | | | 30 | | | | | | 30 | | | | | | — | | | | | | 34 | | | | | | 34 | | |
Arrangement fees
|
| | | | — | | | | | | 4,843 | | | | | | 4,843 | | | | | | — | | | | | | 2,988 | | | | | | 2,988 | | |
Interest expense
|
| | | | — | | | | | | 4,047 | | | | | | 4,047 | | | | | | — | | | | | | — | | | | | | — | | |
Equity loss in affiliates
|
| | | | 17,585 | | | | | | — | | | | | | 17,585 | | | | | | 12,865 | | | | | | — | | | | | | 12,865 | | |
Dilution loss on affiliates
|
| | | | — | | | | | | — | | | | | | — | | | | | | 11,231 | | | | | | — | | | | | | 11,231 | | |
Net other loss (income)
|
| | | | 9 | | | | | | (37) | | | | | | (28) | | | | | | 31 | | | | | | (67) | | | | | | (36) | | |
Capital expenditures
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total assets
|
| | | | 38,326 | | | | | | 227,084 | | | | | | 265,410 | | | | | | 55,372 | | | | | | 67,448 | | | | | | 122,820 | | |
| | |
December 31,
2020 |
| |
December 31,
2019 |
| ||||||
ASSETS | | | | | | | | | | | | | |
Current Assets | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 1,676 | | | | | $ | 1,302 | | |
Receivables
|
| | | | 3,988 | | | | | | 5,655 | | |
Inventories
|
| | | | 10,315 | | | | | | 11,374 | | |
VAT receivable
|
| | | | 50,732 | | | | | | 50,184 | | |
Other current assets
|
| | | | 2,891 | | | | | | 1,672 | | |
Total current assets
|
| | | | 69,602 | | | | | | 70,187 | | |
Non-Current Assets | | | | | | | | | | | | | |
Mine development, net
|
| | | | 202,874 | | | | | | 182,602 | | |
Property, plant and equipment, net
|
| | | | 196,942 | | | | | | 216,131 | | |
Total non-current assets
|
| | | | 399,816 | | | | | | 398,733 | | |
Total Assets
|
| | | $ | 469,418 | | | | | $ | 468,920 | | |
LIABILITIES AND OWNERS’ CAPITAL | | | | | | | | | | | | | |
Current Liabilities | | | | | | | | | | | | | |
Accounts payable and accrued liabilities
|
| | | $ | 35,767 | | | | | $ | 43,287 | | |
Related party payable
|
| | | | 1,703 | | | | | | 6,875 | | |
Accrued interest
|
| | | | 101 | | | | | | 885 | | |
Unearned revenue
|
| | | | 3,276 | | | | | | — | | |
Equipment loans
|
| | | | 7,084 | | | | | | 6,948 | | |
Dowa Term Loan
|
| | | | 31,826 | | | | | | — | | |
Working Capital Facility
|
| | | | 60,000 | | | | | | — | | |
Total current liabilities
|
| | | | 139,757 | | | | | | 57,995 | | |
Non-Current Liabilities | | | | | | | | | | | | | |
Dowa Term Loan
|
| | | | 187,767 | | | | | | 217,796 | | |
Working Capital Facility
|
| | | | — | | | | | | 60,000 | | |
Equipment loans
|
| | | | 6,120 | | | | | | 12,916 | | |
Reclamation obligations
|
| | | | 12,162 | | | | | | 11,314 | | |
Total non-current liabilities
|
| | | | 206,049 | | | | | | 302,026 | | |
Owners’ Capital | | | | | | | | | | | | | |
Capital contributions
|
| | | | 271,368 | | | | | | 237,905 | | |
Paid-in capital
|
| | | | 16,366 | | | | | | 7,400 | | |
Accumulated deficit
|
| | | | (164,122) | | | | | | (136,406) | | |
Total owners’ capital
|
| | | | 123,612 | | | | | | 108,899 | | |
Total Liabilities and Owners’ Capital
|
| | | $ | 469,418 | | | | | $ | 468,920 | | |
| | |
Twelve Months Ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Sales
|
| | | $ | 121,470 | | | | | $ | 36,508 | | |
Expenses | | | | | | | | | | | | | |
Cost of sales
|
| | | | 65,005 | | | | | | 30,339 | | |
Royalties
|
| | | | 2,148 | | | | | | 184 | | |
Exploration
|
| | | | 841 | | | | | | 208 | | |
General and administrative
|
| | | | 9,718 | | | | | | 2,587 | | |
Depreciation, depletion and amortization
|
| | | | 44,904 | | | | | | 15,460 | | |
Other
|
| | | | 3,416 | | | | | | — | | |
| | | | | 126,032 | | | | | | 48,778 | | |
Other (income) expense | | | | | | | | | | | | | |
Interest expense
|
| | | | 12,484 | | | | | | 5,107 | | |
Arrangement fee
|
| | | | 8,888 | | | | | | 3,524 | | |
Accretion expense
|
| | | | 849 | | | | | | 789 | | |
Other (income) expense
|
| | | | (109) | | | | | | 239 | | |
Foreign exchange loss
|
| | | | 1,042 | | | | | | 174 | | |
| | | | | 23,154 | | | | | | 9,833 | | |
Net Loss
|
| | | $ | (27,716) | | | | | $ | (22,103) | | |
| | |
2020
|
| |
2019
|
| ||||||
ASSETS | | | | | | | | | | | | | |
Current Assets | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 1,676 | | | | | $ | 1,302 | | |
Receivables
|
| | | | 3,988 | | | | | | 5,655 | | |
Inventories
|
| | | | 10,315 | | | | | | 11,374 | | |
VAT receivable
|
| | | | 50,732 | | | | | | 50,184 | | |
Other current assets
|
| | | | 2,891 | | | | | | 1,672 | | |
Total current assets
|
| | | | 69,602 | | | | | | 70,187 | | |
Non-Current Assets | | | | | | | | | | | | | |
Mine development, net
|
| | | | 202,874 | | | | | | 182,602 | | |
Property, plant and equipment, net
|
| | | | 196,942 | | | | | | 216,131 | | |
Total non-current assets
|
| | | | 399,816 | | | | | | 398,733 | | |
Total Assets
|
| | | $ | 469,418 | | | | | $ | 468,920 | | |
LIABILITIES AND OWNERS’ CAPITAL | | | | | | | | | | | | | |
Current Liabilities | | | | | | | | | | | | | |
Accounts payable and accrued liabilities
|
| | | $ | 35,767 | | | | | $ | 43,287 | | |
Related party payable
|
| | | | 1,703 | | | | | | 6,875 | | |
Accrued interest
|
| | | | 101 | | | | | | 885 | | |
Unearned revenue
|
| | | | 3,276 | | | | | | — | | |
Equipment loans
|
| | | | 7,084 | | | | | | 6,948 | | |
Dowa Term Loan
|
| | | | 31,826 | | | | | | — | | |
Working Capital Facility
|
| | | | 60,000 | | | | | | — | | |
Total current liabilities
|
| | | | 139,757 | | | | | | 57,995 | | |
Non-Current Liabilities | | | | | | | | | | | | | |
Dowa Term Loan
|
| | | | 187,767 | | | | | | 217,796 | | |
Working Capital Facility
|
| | | | — | | | | | | 60,000 | | |
Equipment loans
|
| | | | 6,120 | | | | | | 12,916 | | |
Reclamation obligations
|
| | | | 12,162 | | | | | | 11,314 | | |
Total non-current liabilities
|
| | | | 206,049 | | | | | | 302,026 | | |
Owners’ Capital | | | | | | | | | | | | | |
Capital contributions
|
| | | | 271,368 | | | | | | 237,905 | | |
Paid-in capital
|
| | | | 16,366 | | | | | | 7,400 | | |
Accumulated deficit
|
| | | | (164,122) | | | | | | (136,406) | | |
Total owners’ capital
|
| | | | 123,612 | | | | | | 108,899 | | |
Total Liabilities and Owners’ Capital
|
| | | $ | 469,418 | | | | | $ | 468,920 | | |
| | |
2020
|
| |
2019
|
| ||||||
Sales
|
| | | $ | 121,470 | | | | | $ | 36,508 | | |
Expenses | | | | | | | | | | | | | |
Cost of sales
|
| | | | 65,005 | | | | | | 30,339 | | |
Royalties
|
| | | | 2,148 | | | | | | 184 | | |
Exploration
|
| | | | 841 | | | | | | 208 | | |
General and administrative
|
| | | | 9,718 | | | | | | 2,587 | | |
Depreciation, depletion and amortization
|
| | | | 44,904 | | | | | | 15,460 | | |
Other
|
| | | | 3,416 | | | | | | — | | |
| | | | | 126,032 | | | | | | 48,778 | | |
Other (income) expense | | | | | | | | | | | | | |
Interest expense
|
| | | | 12,484 | | | | | | 5,107 | | |
Arrangement fee
|
| | | | 8,888 | | | | | | 3,524 | | |
Accretion expense
|
| | | | 849 | | | | | | 789 | | |
Other (income) expense
|
| | | | (109) | | | | | | 239 | | |
Foreign exchange loss
|
| | | | 1,042 | | | | | | 174 | | |
| | | | | 23,154 | | | | | | 9,833 | | |
Net Loss
|
| | | $ | (27,716) | | | | | $ | (22,103) | | |
| | |
Capital
Contributions |
| |
Paid-in Capital
|
| |
Accumulated
Deficit |
| |
Total
|
| ||||||||||||
Balance at December 31, 2018
|
| | | $ | 168,967 | | | | | $ | 1,358 | | | | | $ | (114,303) | | | | | $ | 56,022 | | |
Contributions
|
| | | | 68,938 | | | | | | — | | | | | | — | | | | | | 68,938 | | |
Other
|
| | | | — | | | | | | (116) | | | | | | — | | | | | | (116) | | |
Costs paid by investor
|
| | | | — | | | | | | 6,158 | | | | | | — | | | | | | 6,158 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | (22,103) | | | | | | (22,103) | | |
Balance at December 31, 2019
|
| | | $ | 237,905 | | | | | $ | 7,400 | | | | | $ | (136,406) | | | | | $ | 108,899 | | |
Contributions
|
| | | | 33,463 | | | | | | — | | | | | | — | | | | | | 33,463 | | |
Costs paid by investor
|
| | | | — | | | | | | 8,966 | | | | | | — | | | | | | 8,966 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | (27,716) | | | | | | (27,716) | | |
Balance at December 31, 2020
|
| | | $ | 271,368 | | | | | $ | 16,366 | | | | | $ | (164,122) | | | | | $ | 123,612 | | |
| | |
2020
|
| |
2019
|
| ||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net loss
|
| | | $ | (27,716) | | | | | $ | (22,103) | | |
Adjustments to reconcile net loss to net cash provided by (used by) operating activities: | | | | | | | | | | | | | |
Depreciation, depletion and amortization
|
| | | | 44,905 | | | | | | 15,460 | | |
Arrangement fee
|
| | | | 8,888 | | | | | | 3,524 | | |
Accretion
|
| | | | 849 | | | | | | 789 | | |
Unrealized loss on foreign currency rate change
|
| | | | 4,696 | | | | | | 272 | | |
Interest expense
|
| | | | 111 | | | | | | — | | |
Other
|
| | | | 77 | | | | | | (116) | | |
Changes in operating assets and liabilities: | | | | | | | | | | | | | |
VAT receivable
|
| | | | (6,071) | | | | | | (19,569) | | |
Receivables
|
| | | | 1,667 | | | | | | (5,655) | | |
Inventories
|
| | | | 5,055 | | | | | | (7,027) | | |
Unearned revenue
|
| | | | 3,276 | | | | | | — | | |
Other current assets
|
| | | | (1,781) | | | | | | (977) | | |
Accounts payable and other accrued liabilities
|
| | | | 9,569 | | | | | | 13,368 | | |
Payables to related parties
|
| | | | 4,276 | | | | | | 3,281 | | |
Accrued interest
|
| | | | 71 | | | | | | 2,745 | | |
Net cash provided by (used by) operating activities
|
| | | | 47,872 | | | | | | (16,008) | | |
Cash flows from investing activities: | | | | | | | | | | | | | |
Deposits
|
| | | | — | | | | | | 1,005 | | |
Other current assets
|
| | | | — | | | | | | 2,568 | | |
Mine development
|
| | | | (50,618) | | | | | | (74,630) | | |
Purchase of property, plant and equipment
|
| | | | (14,249) | | | | | | (53,727) | | |
Materials and supplies inventory
|
| | | | 431 | | | | | | — | | |
Accrued interest
|
| | | | — | | | | | | (513) | | |
Transfers from restricted cash
|
| | | | — | | | | | | 2,219 | | |
Net cash used by investing activities
|
| | | | (64,436) | | | | | | (123,078) | | |
Cash flows from financing activities: | | | | | | | | | | | | | |
Capital contributions
|
| | | | 5,000 | | | | | | 18,200 | | |
Dowa MPR Loan paydown
|
| | | | — | | | | | | (17,336) | | |
Equipment loan payments
|
| | | | (6,966) | | | | | | (6,485) | | |
Working Capital Facility advances
|
| | | | — | | | | | | 60,000 | | |
Dowa Term Loan borrowings
|
| | | | — | | | | | | 75,000 | | |
Related party borrowings
|
| | | | 18,904 | | | | | | — | | |
Deferred financing costs
|
| | | | — | | | | | | (222) | | |
Net cash provided by financing activities
|
| | | | 16,938 | | | | | | 129,157 | | |
Net increase (decrease) in cash and cash equivalents
|
| | | | 374 | | | | | | (9,929) | | |
Cash and cash equivalents, beginning of period
|
| | | | 1,302 | | | | | | 11,231 | | |
Cash and cash equivalents, end of period
|
| | | $ | 1,676 | | | | | $ | 1,302 | | |
Interest paid
|
| | | $ | 7,406 | | | | | $ | 3,940 | | |
Supplemental dislosure of noncash transactions: | | | | | | | | | | | | | |
Accrued interest
|
| | | $ | — | | | | | $ | 8,535 | | |
Equipment loan borrowings
|
| | | $ | — | | | | | $ | 7,679 | | |
Conversion of related party payables to equity
|
| | | $ | 9,448 | | | | | $ | — | | |
Conversion of related party borrowings to equity
|
| | | $ | 18,904 | | | | | $ | — | | |
Conversion of MPR Loan to equity
|
| | | $ | — | | | | | $ | 50,737 | | |
Conversion of related party accrued interest to debt
|
| | | $ | 854 | | | | | $ | 10,179 | | |
Depreciation expense included in mine development
|
| | | $ | — | | | | | $ | 4,589 | | |
Materials and supplies included in accrued liabilities
|
| | | $ | 4,428 | | | | | $ | — | | |
Mine development costs included in accrued liabilities
|
| | | $ | 11,229 | | | | | $ | 10,720 | | |
Property, plant and equipment included in accrued liabilities
|
| | | $ | 8,917 | | | | | $ | 10,290 | | |
Deferred finacning costs included in PPE and mine development
|
| | | $ | — | | | | | $ | 495 | | |
Equity method investee portion of arrangement fee
|
| | | $ | — | | | | | $ | 2,634 | | |
| | |
2020
|
| |
2019
|
| ||||||
Lead Concentrate
|
| | | $ | 90,883 | | | | | $ | 28,437 | | |
Zinc Concentrate
|
| | | | 30,587 | | | | | | 8,071 | | |
| | | | $ | 121,470 | | | | | $ | 36,508 | | |
| | |
2020
|
| |
2019
|
| ||||||
Ore stockpiles
|
| | | $ | 1,178 | | | | | $ | 4,863 | | |
Concentrate stockpiles
|
| | | | 590 | | | | | | 1,096 | | |
Material & supplies
|
| | | | 8,547 | | | | | | 5,415 | | |
| | | | $ | 10,315 | | | | | $ | 11,374 | | |
| | |
2020
|
| |
2019
|
| ||||||
Prepaid expenses
|
| | | $ | 2,179 | | | | | $ | 1,432 | | |
Deposits and other
|
| | | | 712 | | | | | | 240 | | |
| | | | $ | 2,891 | | | | | $ | 1,672 | | |
| | |
2020
|
| |
2019
|
| ||||||
Mineral properties
|
| | | $ | 853 | | | | | $ | 853 | | |
Plant & equipment
|
| | | | 69,297 | | | | | | 64,469 | | |
Land
|
| | | | 14,422 | | | | | | 14,422 | | |
Infrastructure & improvements
|
| | | | 152,942 | | | | | | 152,290 | | |
Furniture, fixtures & computers
|
| | | | 509 | | | | | | 508 | | |
Property, plant & equipment at cost
|
| | | | 238,023 | | | | | | 232,542 | | |
Less accumulated amortization
|
| | | | (41,081) | | | | | | (16,411) | | |
| | | | $ | 196,942 | | | | | $ | 216,131 | | |
|
2021
|
| | | $ | 2,000 | | |
|
2022
|
| | | | 575 | | |
|
2023
|
| | | | 100 | | |
|
2024
|
| | | | 100 | | |
|
2025
|
| | | | 100 | | |
|
Thereafter
|
| | | | 10,990 | | |
|
Total
|
| | | $ | 13,865 | | |
| | |
2020
|
| |
2019
|
| ||||||
Accounts payable
|
| | | $ | 25,022 | | | | | $ | 29,669 | | |
Accrued expenses
|
| | | | 9,408 | | | | | | 12,580 | | |
Accrued payroll & taxes
|
| | | | 1,337 | | | | | | 1,038 | | |
| | | | $ | 35,767 | | | | | $ | 43,287 | | |
|
2021
|
| | | $ | 98,910 | | |
|
2022
|
| | | | 37,474 | | |
|
2023
|
| | | | 32,298 | | |
|
2024
|
| | | | 31,826 | | |
|
2025
|
| | | | 31,826 | | |
|
Thereafter
|
| | | | 63,652 | | |
| | | | | $ | 295,986 | | |
| | |
2020
|
| |
2019
|
| ||||||
Balance, beginning of period
|
| | | $ | 11,314 | | | | | $ | 10,525 | | |
Accretion expense
|
| | | | 848 | | | | | | 789 | | |
ARO additions
|
| | | | — | | | | | | — | | |
Balance, end of period
|
| | | $ | 12,162 | | | | | $ | 11,314 | | |
| | |
2020
|
| |
2019
|
| ||||||
Term Loan(1)
|
| | | $ | 219,593 | | | | | $ | 217,796 | | |
WCF
|
| | | | 60,000 | | | | | | 60,000 | | |
Equipment Loans
|
| | | | 13,204 | | | | | | 19,864 | | |
| | | | $ | 292,797 | | | | | $ | 297,660 | | |
| | |
2020
|
| |
2019
|
| ||||||
Tax benefit from continuing operations
|
| | | $ | (8,315) | | | | | $ | (6,631) | | |
Nondeductible expenses
|
| | | | 6,049 | | | | | | 2,244 | | |
Change in valuation allowance
|
| | | | 543 | | | | | | 3,772 | | |
NOL inflation adjustment
|
| | | | 8,876 | | | | | | 41 | | |
NOL expiration
|
| | | | 1,454 | | | | | | 574 | | |
NOL utilization
|
| | | | (1,785) | | | | | | — | | |
Other
|
| | | | (6,822) | | | | | | — | | |
| | | | $ | — | | | | | $ | — | | |
| | |
2020
|
| |
2019
|
| ||||||
Deferred tax assets | | | | | | | | | | | | | |
Accrued expenses
|
| | | $ | 2,468 | | | | | $ | 112 | | |
Unearned revenue
|
| | | | 990 | | | | | | — | | |
Fixed assets
|
| | | | 3,033 | | | | | | — | | |
Reclamation obligations
|
| | | | 3,649 | | | | | | — | | |
Exploration and development
|
| | | | 9,958 | | | | | | 8,451 | | |
Operating loss carryforward
|
| | | | 26,422 | | | | | | 35,589 | | |
NOL, inflation adjustment
|
| | | | 4,675 | | | | | | 5,838 | | |
Valuation allowances
|
| | | | (50,110) | | | | | | (49,567) | | |
| | | | | 1,085 | | | | | | 423 | | |
Deferred tax liabilities | | | | | | | | | | | | | |
Prepaid expenses
|
| | | | (1,085) | | | | | | (103) | | |
Fixed assets
|
| | | | — | | | | | | (320) | | |
| | | | | (1,085) | | | | | | (423) | | |
Net deferred income tax assets (liabilities)
|
| | | $ | — | | | | | $ | — | | |
| 10.7.2# | | | | |
| 10.8.1# | | | | |
| 10.9.1† | | | | |
| 10.9.2† | | | | |
| 10.9.3† | | | | |
| 10.9.4† | | | | |
| 10.9.5† | | | | |
| 10.10.1† | | | | |
| 10.11.1† | | | | |
| 10.12.1† | | | | |
| 10.12.2† | | | | |
| 10.12.3† | | | | |
| 10.13.1 | | | | |
| 10.14.1 | | | | |
| 10.15.1 | | | | |
| 10.16.1 | | | | |
| 21.1* | | | | |
| 23.1* | | | Consent of KPMG LLP — Gatos Silver, Inc. | |
| 23.2* | | | | |
| 24.1* | | | Power of Attorney (included on signature page) | |
| 31.1* | | | | |
| 31.2* | | | | |
| 32.1** | | | |
| 95.1* | | | | |
| 101.INS | | | XBRL Instance Document | |
| 101.SCH | | | XBRL Taxonomy Extension Schema Document | |
| 101.CAL | | | XBRL Taxonomy Extension Calculation Linkbase Document | |
| 101.DEF | | | XBRL Taxonomy Extension Definition Linkbase Document | |
| 101.LAB | | | XBRL Taxonomy Extension Label Linkbase Document | |
| 101.PRE | | | XBRL Taxonomy Extension Presentation Linkbase Document | |
| | | | GATOS SILVER, INC. | |
| March 29, 2021 | | |
By:
/s/ Stephen Orr
Stephen Orr
Chief Executive Officer |
|
|
Signature
|
| |
Title
|
| |
Date
|
|
|
/s/ Stephen Orr
Stephen Orr
|
| | Chief Executive Officer and Director (principal executive officer) | | |
March 29, 2021
|
|
|
/s/ Roger Johnson
Roger Johnson
|
| | Chief Financial Officer (principal financial officer and principal accounting officer) | | |
March 29, 2021
|
|
|
/s/ Janice Stairs
Janice Stairs
|
| | Chair of the Board of Directors | | |
March 29, 2021
|
|
|
/s/ Ali Erfan
Ali Erfan
|
| | Director | | |
March 29, 2021
|
|
|
/s/ Igor Gonzales
Igor Gonzales
|
| | Director | | |
March 29, 2021
|
|
|
/s/ Karl Hanneman
Karl Hanneman
|
| | Director | | |
March 29, 2021
|
|
|
/s/ Charles Hansard
Charles Hansard
|
| | Director | | |
March 29, 2021
|
|
|
/s/ Igor Levental
Igor Levental
|
| | Director | | |
March 29, 2021
|
|
|
/s/ David Peat
David Peat
|
| | Director | | |
March 29, 2021
|
|
Subsidiary
|
| |
Minera Luz del Sol, S. de R.L. de C.V.
|
|
Jurisdiction of Incorporation | | | Mexico | |
| Date: March 29, 2021 | | |
By:
/s/ Stephen Orr
Stephen Orr
Chief Executive Officer |
|
| Date: March 29, 2021 | | |
By:
/s/ Roger Johnson
Roger Johnson
Chief Financial Officer |
|
|
/s/ Stephen Orr
Stephen Orr
Chief Executive Officer March 29, 2021 |
| | ||
|
/s/ Roger Johnson
Roger Johnson
Chief Financial Officer March 29, 2021 |
| | | |
Mine Name/ MSHA Identification Number
|
| |
Section 104
S&S Citations (#) |
| |
Section 104(b)
Orders (#) |
| |
Section 104(d)
Citations and Orders (#) |
| |
Section 110(b)(2)
Violations (#) |
| |
Section 107(a)
Orders (#) |
| |
Total
Dollar Value of MSHA Assessments Proposed ($) |
| |
Total
Number of Mining Related Fatalities (#) |
| |
Received
Notice of Pattern of Violations Under Section 104(e) (yes/no) |
| |
Received
Notice of Potential to Have Pattern Under Section 104(e) (yes/no) |
| |
Legal
Actions Pending as of Last Day of Period (#) |
| |
Legal
Actions Initiated During Period (#) |
| |
Legal
Actions Resolved During Period (#) |
| ||||||||||||||||||||||||||||||||||||
Sunshine Mine/ 1000089
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | $ | 246 | | | | | | — | | | | | | No | | | | | | No | | | | | | — | | | | | | — | | | | | | — | | |
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