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OPERATING SEGMENT REPORTING
 3 Months Ended
Mar. 31, 2019
OPERATING SEGMENT REPORTING  
OPERATING SEGMENT REPORTING

NOTE 12 OPERATING SEGMENT REPORTING

McEwen Mining is a mining and minerals production and exploration company focused on precious metals in Argentina, Mexico, Canada, and the United States. The Company’s chief operating decisions maker (“CODM”) reviews the operating results, assesses performance and makes decisions about allocation of resources to these segments at the geographic region level or major mine/project where the economic characteristics of the individual mines or projects are not alike.  As a result, these operating segments also represent the Company’s reportable segments. The Company’s business activities that are not considered operating segments and not provided to the CODM for review are included in Corporate and other and are provided in this note for reconciliation purposes.

The CODM reviews segment (loss) income, defined as gold and silver sales less production costs applicable to sales, mine development costs, exploration costs, property holding costs and general and administrative costs, for all segments except for the MSC segment which is evaluated based on the attributable equity income or loss. Gold and silver sales and production costs applicable to sales for the reportable segments are reported net of intercompany transactions.

Significant information relating to the Company’s reportable operating segments is summarized in the tables below:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended March 31, 2019

    

Mexico

    

MSC

    

Los Azules

    

USA

    

 

Canada

    

Total

Gold and silver sales

 

$

5,798

 

$

 —

 

$

 —

 

$

842

 

$

8,943

 

$

15,583

Other revenue

 

 

 —

 

 

 —

 

 

 —

 

 

57

 

 

 —

 

 

57

Production costs applicable to sales

 

 

(3,925)

 

 

 —

 

 

 —

 

 

(748)

 

 

(8,495)

 

 

(13,168)

Mine development costs

 

 

(776)

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(776)

Exploration costs

 

 

 —

 

 

 —

 

 

(913)

 

 

(484)

 

 

(2,392)

 

 

(3,789)

Property holding costs

 

 

(1,197)

 

 

 —

 

 

(20)

 

 

(341)

 

 

(50)

 

 

(1,608)

General and administrative costs

 

 

(1,202)

 

 

 —

 

 

(184)

 

 

(195)

 

 

(28)

 

 

(1,609)

Loss from investment in Minera Santa Cruz S.A. (net of amortization)

 

 

 —

 

 

(2,310)

 

 

 —

 

 

 —

 

 

 —

 

 

(2,310)

Segment loss

 

$

(1,302)

 

$

(2,310)

 

$

(1,117)

 

$

(869)

 

$

(2,022)

 

$

(7,620)

Corporate and other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(2,262)

Depreciation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(152)

Revision of estimates and accretion of reclamation obligations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(461)

Interest and other expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(513)

Gain on investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

827

Foreign currency gain

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

163

Net loss before income and mining taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(10,018)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended March 31, 2018

    

Mexico

    

MSC

    

Los Azules

    

USA

    

Canada

    

Total

Gold and silver sales

 

$

25,417

 

$

 —

 

$

 —

 

$

 —

 

$

15,624

 

$

41,041

Other revenue

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

244

 

 

244

Production costs applicable to sales

 

 

(13,608)

 

 

 —

 

 

 —

 

 

 —

 

 

(12,786)

 

 

(26,394)

Mine development costs

 

 

(380)

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(380)

Exploration costs

 

 

(971)

 

 

 —

 

 

(3,207)

 

 

(2,000)

 

 

(5,276)

 

 

(11,454)

Property holding costs

 

 

(1,149)

 

 

 —

 

 

(40)

 

 

(179)

 

 

(43)

 

 

(1,411)

General and administrative costs

 

 

(829)

 

 

 —

 

 

(278)

 

 

(863)

 

 

(88)

 

 

(2,058)

Loss from investment in Minera Santa Cruz S.A. (net of amortization)

 

 

 —

 

 

(212)

 

 

 —

 

 

 —

 

 

 —

 

 

(212)

Segment income (loss)

 

$

8,480

 

$

(212)

 

$

(3,525)

 

$

(3,042)

 

$

(2,325)

 

$

(624)

Corporate and other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(3,129)

Depreciation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(360)

Revision of estimates and accretion of reclamation obligations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(294)

Interest and other expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(134)

Loss on investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,735)

Foreign currency gain

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

927

Net loss before income and mining  taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(6,349)

Geographic information

Geographic information includes the long-lived assets balance and revenues presented for the company’s operating segments, as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-lived Assets

 

Revenue(1)

 

 

March 31,

 

December 31,

 

Three months ended March 31,

 

    

2019

    

2018

    

2019

    

2018

Canada

 

$

83,798

 

$

84,119

 

$

8,943

 

$

15,868

Mexico

 

 

25,873

 

 

26,524

 

 

5,798

 

 

25,417

USA

 

 

138,670

 

 

127,617

 

 

899

 

 

 —

Argentina(2)

 

 

314,975

 

 

319,305

 

 

 —

 

 

 —

Total consolidated

 

$

563,316

 

$

557,565

 

$

15,640

 

$

41,285

(1)

Presented based on the location from which the product originated. 

(2)

Includes Investment in MSC of $123.5 million as of March 31, 2019 (December 31, 2018 – $127.8 million).