Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2022

The Company’s gold stream agreement with a subsidiary of Franco-Nevada Corporation (“Franco-Nevada”) provided for a $22.0 million deposit paid by Franco-Nevada in exchange for the right and obligation, commencing in 2016, to purchase 50% of a portion of Palmarejo gold production at the lesser of $800 or market price per ounce. Because there is no minimum obligation associated with the deposit, it is not considered financing, and each shipment is considered to be a separate performance obligation. The streaming agreement represents a contract liability under ASC 606, which requires the Company to ratably recognize a portion of the deposit as revenue for each gold ounce delivered to Franco-Nevada. The remaining unamortized balance is included in Accrued liabilities and other and Other long-term liabilities on the Consolidated Balance Sheets. See Note 19 -- Commitments and Contingencies for additional detail.

The following table presents a roll forward of the Franco-Nevada contract liability balance:


	Year Ended December 31,
In thousands		2022		2021		2020
Opening Balance		$	8,150	$	9,376	$	11,061
Revenue Recognized		(739)		(1,226)		(1,685)
Closing Balance		$	7,411	$	8,150	$	9,376

In December 2021, the Company received a $15.0 million prepayment (the “December 2021 Prepayment”) for deliveries of gold concentrate from the Kensington mine pursuant to the Amended Sales Contract (as defined in Note 19 -- Commitments and Contingencies). In March 2022, the Company exercised an option to receive a $10.0 million prepayment (the “March 2022 Prepayment). The Amended Sales Contract was further amended in June 2022 to consolidate the remaining deliveries of $15.0 million and $10.0 million under the December 2021 Prepayment and March 2022 Prepayment (the “June 2022 Consolidated Prepayment”). In December 2022, the Company exercised an option to receive a $25.0 million prepayment (the “December 2022 Prepayment”) concurrent with the repayment of the June 2022 Consolidated Prepayment in full. The Amended Sales Contract represents a contract liability under ASC 606, which requires the Company to recognize ratably a portion of the deposit as revenue for each gold ounce delivered to the customer. The remaining contract liability is included in Accrued liabilities and other on the Consolidated Balance Sheets. See Note 19 -- Commitments and Contingencies for additional detail.

The following table presents a roll forward of the Amended Sales Contract liability balance:


	Year Ended December 31,
In thousands		2022		2021		2020
Opening Balance		$	15,016	$	15,003	$	15,009
Additions		36,020		30,013		30,177
Revenue Recognized		(26,020)		(30,000)		(30,183)
Closing Balance		$	25,016	$	15,016	$	15,003