Debt, Net

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

Debt, Net

Debt, Net

Debt covenants

The Company’s debt agreements contain representations and warranties, events of default, restrictions and limitations, reporting requirements, and covenants that are customary for agreements of these types.

As of September 30, 2021, the Company was in compliance with all covenants under its debt agreements. Refer to Note 22 - Subsequent Events for further details on the Company's debt covenants. 

Debt balances

The following table summarizes the components of Debt, net (dollars in thousands):

	September 30, 2021		December 31, 2020
Debt, net, current:
Sprott Credit Agreement(1)	$	13,185	$	5,274
Note payable(2)	125		—
Less, debt issuance costs	(565)		(154)
Total	$	12,745	$	5,120
Debt, net, non-current:
Subordinated Notes	$	91,316	$	84,797
Sprott Credit Agreement, net of original issue discount ($8.2 million, net)	57,082		61,894
Note payable(2)	364		—
Less, debt issuance costs	(2,573)		(4,026)
Total	$	146,189	$	142,665

(1)As of September 30, 2021 amount included: (i) $2.2 million of Additional Interest, as defined in the Sprott Credit Agreement and (ii) $11.0 million scheduled principal payments under the Sprott Credit Agreement, all due in the next twelve months. As of December 31, 2020, amount included $1.6 million of Additional Interest (as defined in the Sprott Credit Agreement) plus 5.0% of the Company's outstanding debt balance under the Sprott Credit Agreement.

(2)During the first quarter of 2021, the Company financed the $0.4 million purchase of a rental fuel/lube truck with a note payable to the vendor with an interest rate of 0.99%, requiring equal monthly payments for 48 months. During the third quarter of 2021, the Company financed a $0.1 million purchase of three Ford trucks with a note payable to the vendor with an interest rate of 4.54%, requiring equal monthly payments for 60 months.

The following table summarizes the Company's contractual payments of Debt, net, including current maturities, for the five years subsequent to September 30, 2021 (dollars in thousands):

July 1, 2021 through December 31, 2021	$	4,242
2022	16,980
2023	24,298
2024	24,301
2025	103,470
Total	173,291
Less, original issue discount, net of amortization ($5.8 million)	(11,219)
Less, debt issuance costs, net of amortization ($1.8 million)	(3,138)
Total debt, net	$	158,934

Interest expense, net of capitalized interest

The following table summarizes the components of recorded Interest expense, net of capitalized interest (dollars in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Sprott Credit Agreement	$	2,820	$	2,526	$	8,227	$	3,322
Subordinated Notes	2,227		2,018		6,520		2,729
Amortization of debt issuance costs	358		336		1,043		1,643
Other interest expense	56		—		40		8
2.0 Lien Notes	—		—		—		12,902
1.5 Lien Notes	—		—		—		8,635
1.25 Lien Notes	—		—		—		6,218
First Lien Agreement	—		—		—		4,575
Promissory Note	—		—		—		141
Capitalized interest	—		(561)		(654)		(895)
Total	$	5,461	$	4,319	$	15,176	$	39,278

The Company capitalizes interest to Plant, equipment, and mine development, net for construction projects in accordance with ASC Topic 835, Interest. Interest expense incurred under the Subordinated Notes is payable-in-kind. In May 2021, the Company began paying cash for interest expense incurred under the Sprott Credit Agreement. Prior to May 2021, interest expense incurred under the Sprott Credit Agreement was payable-in-kind.