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Tahoe Acquisition (Tables)
 12 Months Ended
Dec. 31, 2019
Disclosure of detailed information about business combination [abstract]  
Disclosure of detailed information about business combination
The following table summarizes the consideration paid as part of the purchase price:
Consideration:
Shares Issued/
Issuable
Consideration
Fair value estimate of the Pan American Share consideration (1)
55,990,512

$
795,626

Fair value estimate of the CVRs (2)
15,600,208

71,916

Cash (1)
—

275,008

Fair value estimate of replacement options (3)
835,874

124

Total Consideration
72,426,594

$
1,142,674

(1)
The Pan American Share consideration value is based on an assumed value of $14.21 per share (based on the NASDAQ closing price on February 21, 2019).
(2)
Assumed fair value of the CVRs is based on the residual amount of the value of the Tahoe Shares acquired (based on the NYSE closing price closing of $3.64 on February 21, 2019) after deducting the cash consideration of $275 million and the fair value of the Company's share consideration paid (based on the February 21, 2019 NASDAQ closing price of $14.21).
(3)
Assumed fair value of 3.5 million Tahoe options that upon the Tahoe Acquisition vested and converted into 835.8 thousand Pan American stock options (the "Replacement options"). The fair value of the Replacement options was determined using the Black-Scholes option pricing model, as at the Tahoe Acquisition date, using the following assumptions:
Share price at February 21, 2019 (Canadian dollars, "CAD")
$
19.01

Exercise price
$
11.67 - 97.26

Expected volatility
 
0.4075

Expected life (years)
 
0.2 - 1.0

Expected dividend yield
 
0.78
%
Risk-free interest rate
 
0.93
%
Fair value (CAD)
$
163,273.36

CAD to USD exchange rate at December 31, 2018
$
0.7578

Fair value (USD)
$
123,729.43

The following table summarizes the preliminary and final allocation of the purchase price to the identifiable assets and liabilities based on their estimated fair values at the date of the Tahoe Acquisition:
 
Preliminary
as reported
March 31, 2019
Adjustments
Final
as reported
December 31, 2019
 
 
 
 
Total purchase consideration paid for Tahoe
$
1,142,674

$
—

$
1,142,674

 
 
 
 
Cash and cash equivalents
$
27,529

$
—

$
27,529

Accounts receivable
17,854

300

18,154

VAT Receivable
87,268

224

87,492

Inventory
152,534

(4,325
)
148,209

Other current assets
4,135

(2,754
)
1,381

Mineral properties, plant and equipment
1,298,037

(58,635
)
1,239,402

Other assets
3,450

3,101

6,551

Deferred tax assets
—

30,728

30,728

Accounts payable and accrued liabilities
(159,675
)
10,933

(148,742
)
Debt
(125,000
)
—

(125,000
)
Provision for closure and decommissioning liabilities
(70,119
)
(7,201
)
(77,320
)
Net current and deferred income tax liabilities
(62,847
)
(2,863
)
(65,710
)
Fair value of Tahoe net assets acquired
$
1,173,166

$
(30,492
)
$
1,142,674

 
 
 
 
Bargain purchase gain recognized in net earnings on February 22, 2019
$
30,492

$
(30,492
)
$
—
Disclosure of estimated future metal prices used in discounted cash flows models
Further, the discounted cash flow models were based on the following estimated future metal prices:
Commodity Prices
2019-2022
2023 onwards
Gold price - $/oz.
$1,300
$1,300
Silver price - $/oz
$17.07
$18.50
Zinc - $/tonne
$2,599
$2,600
Lead - $/tonne
$2,171
$2,200