OPERATING SEGMENT REPORTING

3 Months Ended

Mar. 31, 2021

OPERATING SEGMENT REPORTING

OPERATING SEGMENT REPORTING

NOTE 3 OPERATING SEGMENT REPORTING

The Company is a mining and minerals production and exploration company focused on precious metals in the United States, Canada, Mexico, and Argentina. The Company’s chief operating decision maker (“CODM”) reviews the operating results, assesses performance and makes decisions about the 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 within a geographic region 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 are included in General and Administrative and other and are provided in this note for reconciliation purposes.

The CODM reviews segment income or loss, defined as gold and silver sales less production costs applicable to sales, depreciation and depletion, advanced projects and exploration 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.

Capital expenditures include costs capitalized in mineral property interests and plant and equipment in the respective periods.

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

Three months ended March 31, 2021	USA			Canada	Mexico		MSC		Los Azules		Total
Revenue from gold and silver sales	$	12,893	$	8,561	$	2,286	$	—	$	—	$	23,740
Production costs applicable to sales		(13,557)		(6,656)		(3,376)		—	$	—		(23,589)
Depreciation and depletion		(1,741)		(3,395)		(1)		—	$	—		(5,137)
Gross (loss)		(2,405)		(1,490)		(1,091)		—		—		(4,986)
Advanced projects		(84)		(623)		(1,092)		—	$	—		(1,799)
Exploration		(864)		(3,434)		(8)		—	$	(650)		(4,956)
Impairment of mineral property interests and plant and equipment (Note 8)		—		—		—		—	$	—		—
Loss from investment in Minera Santa Cruz S.A.		—		—		—		(574)	$	—		(574)
Segment loss	$	(3,353)	$	(5,547)	$	(2,191)	$	(574)	$	(650)	$	(12,315)
General and Administrative and other												(2,166)
Loss before income and mining taxes											$	(14,481)
Capital expenditures	$	757	$	9,567	$	—	$	—	$	—	$	10,324

Three months ended March 31, 2020	USA		Canada		Mexico		MSC		Los Azules		Total
Revenue from gold and silver sales	$	14,317	$	12,739	$	4,344	$	—	$	—	$	31,400
Production costs applicable to sales		(17,032)		(7,207)		(4,148)		—		—		(28,387)
Depreciation and depletion		(3,862)		(2,748)		(88)		—		—		(6,698)
Gross (loss) profit		(6,577)		2,784		108		—		—		(3,685)
Advanced projects		(366)		(1,066)		(1,118)		—		—		(2,550)
Exploration		(809)		(2,405)		—		—		(576)		(3,790)

Impairment of mineral property interests and plant and equipment (Note 8)		(83,805)		—		—		—		—		(83,805)
Loss from investment in Minera Santa Cruz S.A.		—		—		—		(2,676)		—		(2,676)
Segment loss	$	(91,557)	$	(687)	$	(1,010)	$	(2,676)	$	(576)	$	(96,506)
General and Administrative and other												(3,779)
Loss before income and mining taxes											$	(100,285)
Capital expenditures	$	1,807	$	3,729	$	—	$	—	$	—	$	5,536

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,
	2021		2020		2021		2020
USA	$	46,280	$	46,801	$	12,893	$	14,317
Canada		85,811		78,986		8,561		12,739
Mexico		20,018		20,021		2,286		4,344
Argentina (2)		294,259		299,816		—		—
Total consolidated (3)	$	446,368	$	445,624	$	23,740	$	31,400

(1) Presented based on the location from which the product originated.

(2) Includes Investment in MSC of $102.8 million as of March 31, 2021 (December 31, 2020 – $108.3 million).

(3) Total excludes $0.8 million related to the Company's ROU office lease asset as the business activities related to corporate are not considered to be a part of the operating segments.