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Table of Contents

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2020

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from               to

Commission File Number: 001-33190

MCEWEN MINING INC.

(Exact name of registrant as specified in its charter)

Colorado

84-0796160

(State or other jurisdiction of

(I.R.S. Employer

incorporation or organization)

Identification No.)

150 King Street West, Suite 2800, Toronto, Ontario Canada M5H 1J9

(Address of principal executive offices) (Zip code)

(866) 441-0690

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common stock, no par value

MUX

New York Stock Exchange (“NYSE”)

Indicate by check mark whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes   No 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes   No 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.  

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes   No  

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 408,841,891 shares outstanding as of October 29, 2020

Table of Contents

MCEWEN MINING INC.

FORM 10-Q

Index

Part I        FINANCIAL INFORMATION

Item 1.

    

Financial Statements

   

3

Consolidated Statements of Operations and Comprehensive Loss for the three and nine months ended September 30, 2020 and 2019 (unaudited)

3

Consolidated Balance Sheets at September 30, 2020 and December 31, 2019 (unaudited)

4

Consolidated Statements of Changes in Shareholders’ Equity for the three and nine months ended September 30, 2020 and 2019 (unaudited)

5

Consolidated Statements of Cash Flows for the nine months ended September 30, 2020 and 2019 (unaudited)

6

Notes to Consolidated Financial Statements (unaudited)

7

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

21

Item 3.

Quantitative and Qualitative Disclosure about Market Risk

45

Item 4.

Controls and Procedures

47

Part II        OTHER INFORMATION

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

48

Item 4.

Mine Safety Disclosures

48

Item 5.

Other Information

48

Item 6.

Exhibits

50

SIGNATURES

51

2

Table of Contents

PART I – FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS

MCEWEN MINING INC.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED)

(in thousands of U.S. dollars, except per share)

Three months ended September 30,

Nine months ended September 30,

2020

    

2019

    

2020

    

2019

Revenue from gold and silver sales

$

27,395

$

32,691

$

77,086

$

84,657

Production costs applicable to sales

 

(23,526)

 

(23,584)

 

(74,267)

 

(59,432)

Depreciation and depletion

(4,570)

(7,488)

(16,080)

(17,501)

Gross (loss) profit

(701)

1,619

(13,261)

7,724

OTHER OPERATING EXPENSES:

Advanced projects

 

(4,027)

 

(2,140)

 

(9,464)

 

(6,881)

Exploration

 

(4,423)

 

(13,695)

 

(11,761)

 

(23,717)

General and administrative

 

(2,532)

 

(2,645)

 

(6,836)

 

(8,078)

Income (loss) from investment in Minera Santa Cruz S.A. (note 10)

 

2,582

 

(328)

 

(1,139)

 

(6,775)

Depreciation

 

(88)

 

(96)

 

(317)

 

(417)

Revision of estimates and accretion of asset retirement obligations (note 12)

 

(886)

 

(495)

 

(2,003)

 

(1,383)

Impairment of mineral property interests and plant and equipment (note 9)

(83,805)

Other operating (note 4)

(1,968)

 

(9,374)

 

(19,399)

 

(117,293)

 

(47,251)

Operating loss

 

(10,075)

 

(17,780)

 

(130,554)

 

(39,527)

OTHER INCOME (EXPENSE):

Interest and other finance expense, net

 

(1,945)

 

(650)

 

(5,576)

 

(3,946)

Other income (note 5)

2,090

 

4,773

 

6,071

 

6,283

Total other income

 

145

 

4,123

 

495

 

2,337

Loss before income and mining taxes

(9,930)

(13,657)

(130,059)

(37,190)

Income and mining tax recovery

152

2,192

1,276

2,575

Net loss

$

(9,778)

$

(11,465)

$

(128,783)

$

(34,615)

Net loss per share (note 14):

Basic and Diluted

$

(0.02)

$

(0.03)

$

(0.32)

$

(0.10)

Weighted average common shares outstanding (thousands) (note 14):

Basic and Diluted

 

403,887

 

362,175

 

401,603

 

356,218

The accompanying notes are an integral part of these consolidated financial statements.

3

Table of Contents

MCEWEN MINING INC.

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(in thousands of U.S. dollars)

September 30,

December 31,

    

2020

    

2019

 

ASSETS

Current assets:

Cash and cash equivalents

$

7,954

$

46,452

Restricted cash (note 18)

10,193

Investments (note 6)

 

 

1,885

Receivables, prepaids and other assets (note 7)

 

5,155

 

5,265

Inventories (note 8)

 

34,244

 

38,376

Total current assets

 

57,546

 

91,978

Mineral property interests and plant and equipment, net (note 9)

 

330,202

 

418,791

Investment in Minera Santa Cruz S.A. (note 10)

 

108,762

 

110,183

Inventories, long-term (note 8)

5,457

9,603

Restricted cash (note 18)

3,595

48

Other assets

 

618

 

620

TOTAL ASSETS

$

506,180

$

631,223

LIABILITIES & SHAREHOLDERS’ EQUITY

Current liabilities:

Accounts payable and accrued liabilities

$

28,852

$

34,070

Flow-through share premium (note 13)

2,058

Debt, current portion (note 11)

5,000

Debt to related party, current portion (notes 11 and 15)

5,000

Lease liabilities, current portion

2,213

2,115

Asset retirement obligation, current portion (note 12)

 

2,860

 

2,610

Total current liabilities

 

35,983

 

48,795

Lease liabilities, long-term

3,408

5,018

Debt (note 11)

23,997

19,758

Debt to related party (notes 11 and 15)

23,997

19,758

Asset retirement obligation, long-term (note 12)

 

30,932

 

29,591

Other liabilities

3,365

3,910

Deferred income and mining tax liability

 

3,697

 

4,914

Total liabilities

$

125,379

$

131,744

Shareholders’ equity:

Common shares: 408,842 as of September 30, 2020 and 400,339 as of December 31, 2019 issued and outstanding (in thousands) (note 13)

$

1,540,807

$

1,530,702

Accumulated deficit

 

(1,160,006)

 

(1,031,223)

Total shareholders’ equity

 

380,801

 

499,479

TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY

$

506,180

$

631,223

The accompanying notes are an integral part of these consolidated financial statements.

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MCEWEN MINING INC.

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

(UNAUDITED)

(in thousands of U.S. dollars and shares)

Common Stock

and Additional

Paid-in Capital

Accumulated

Three months ended September 30, 2019 and 2020:

    

Shares

    

Amount

Deficit

Total

Balance, June 30, 2019

 

361,957

$

1,482,640

$

(994,626)

$

488,014

Stock-based compensation

 

284

284

Exercise of stock options

 

147

151

151

Shares issued for acquisition of mineral property interests

354

724

724

Net loss

(11,465)

(11,465)

Balance, September 30, 2019

 

362,458

$

1,483,799

$

(1,006,091)

$

477,708

Balance, June 30, 2020

402,491

$

1,532,940

$

(1,150,228)

$

382,712

Stock-based compensation

 

30

30

Sale of flow-through common shares

6,298

7,767

7,767

Shares issued for acquisition of mineral property interests

53

70

70

Net loss

 

(9,778)

(9,778)

Balance, September 30, 2020

 

408,842

$

1,540,807

$

(1,160,006)

$

380,801

Common Stock

 

and Additional

 

Paid-in Capital

Accumulated

 

Nine months ended September 30, 2019 and 2020:

    

Shares

    

Amount

Deficit

Total

 

Balance, December 31, 2018

 

344,560

$

1,457,422

$

(971,476)

$

485,946

Stock-based compensation

 

 

481

 

 

481

Exercise of stock options

 

405

 

411

 

 

411

Units issued in connection with registered direct offering , net of issuance costs

16,129

22,910

22,910

Sale of shares in ATM offering

1,010

1,851

1,851

Shares issued for acquisition of mineral property interests

354

724

724

Net loss

(34,615)

(34,615)

Balance, September 30, 2019

 

362,458

$

1,483,799

$

(1,006,091)

$

477,708

Balance, December 31, 2019

400,339

$

1,530,702

$

(1,031,223)

$

499,479

Stock-based compensation

 

332

332

Sale of flow-through common shares

6,298

7,767

7,767

Exercise of stock options

60

61

61

Shares issued for debt refinancing

2,092

1,875

1,875

Shares issued for acquisition of mineral property interests

53

70

70

Net loss

 

(128,783)

(128,783)

Balance, September 30, 2020

 

408,842

$

1,540,807

$

(1,160,006)

$

380,801

The accompanying notes are an integral part of these consolidated financial statements.

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MCEWEN MINING INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(in thousands of U.S. dollars)

Nine months ended September 30,

    

2020

    

2019

Cash flows from operating activities:

Net loss

$

(128,783)

$

(34,617)

Adjustments to reconcile net loss from operating activities:

Impairment of mineral property interests and plant and equipment (note 9)

 

83,805

 

Loss from investment in Minera Santa Cruz S.A., net of amortization (note 10)

 

1,139

 

6,775

Loss (gain) on disposal of fixed assets

 

 

134

Depreciation and amortization

 

16,232

 

18,158

Loss (gain) on investments (note 6)

619

(4,972)

Income and mining tax (recovery)

 

(1,276)

 

(2,575)

Stock-based compensation

 

332

 

481

Revision of estimates and accretion of asset retirement obligations (note 12)

1,776

1,817

Foreign exchange (gain) loss

(11)

329

Decrease (increase) in other assets related to operations

 

6,572

 

(13,139)

(Decrease) increase in liabilities related to operations

(5,678)

5,693

Cash used in operating activities

$

(25,273)

$

(21,916)

Cash flows from investing activities:

Additions to mineral property interests and plant and equipment

$

(9,304)

$

(27,027)

Proceeds from sale of investments, net of investments (note 6)

 

1,266

 

4,204

Dividends received from Minera Santa Cruz S.A. (note 10)

 

282

 

4,045

Cash used in investing activities

$

(7,756)

$

(18,778)

Cash flows from financing activities:

Proceeds from sale of units, net of issuance costs (note 13)

$

$

22,910

Sale of flow-through common shares, net of issuance costs (note 13)

9,825

Proceeds of at-the-market share sale (note 13)

1,851

Proceeds of exercise of stock options

61

411

Payment of finance lease obligations

(1,626)

(1,564)

Cash provided by financing activities

$

8,260

$

23,608

Effect of exchange rate change on cash and cash equivalents

11

 

(329)

(Decrease) in cash, cash equivalents and restricted cash

 

(24,758)

 

(17,415)

Cash, cash equivalents and restricted cash, beginning of period

 

46,500

 

30,489

Cash, cash equivalents and restricted cash, end of period (note 18)

$

21,742

$

13,074

Supplemental disclosure of cash flow information:

Cash received (paid) during year for:

Interest paid

$

(3,850)

$

(3,911)

Interest received

158

60

The accompanying notes are an integral part of these consolidated financial statements.

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MCEWEN MINING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

September 30, 2020

(tabular amounts are in thousands of U.S. dollars, unless otherwise noted)

NOTE 1 NATURE OF OPERATIONS AND BASIS OF PRESENTATION

McEwen Mining Inc. (the “Company”) was organized under the laws of the State of Colorado on July 24, 1979. The Company is engaged in the exploration, development, production and sale of gold and silver and exploration for copper.

The Company operates in the United States, Canada, Mexico and Argentina.  The Company owns a 100% interest in the Gold Bar gold mine in Nevada, the Black Fox gold mine in Ontario, Canada, the El Gallo gold project and the Fenix silver-gold project in Sinaloa, Mexico, the Los Azules copper deposit in San Juan, Argentina and a portfolio of exploration properties in Nevada, Canada, Mexico and Argentina. It also owns a 49% interest in Minera Santa Cruz S.A. (“MSC”), owner of the producing San José silver-gold mine in Santa Cruz, Argentina, which is operated by the joint venture majority owner, Hochschild Mining plc.

The interim consolidated financial statements included herein have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and are unaudited. While information and note disclosures normally included in financial statements which are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations, the Company believes that the information and disclosures included are adequate and not misleading.

In management’s opinion, the unaudited Consolidated Statements of Operations and Comprehensive Loss (“Statement of Operations”) for the three and nine months ended September 30, 2020 and 2019, the unaudited Consolidated Balance Sheets as at September 30, 2020 and December 31, 2019, the unaudited Consolidated Statement of Changes in Shareholders’ Equity for the three and nine months ended September 30, 2020 and 2019, and the unaudited Consolidated Statements of Cash Flows for the nine months ended September 30, 2020 and 2019, contained herein, reflect all adjustments, consisting solely of normal recurring items, which are necessary for the fair presentation of the Company’s financial position, results of operations and cash flows on a basis consistent with that of the Company’s prior audited consolidated financial statements. However, the results of operations for the interim periods may not be indicative of results to be expected for the full fiscal year. Therefore, these financial statements should be read in conjunction with the audited financial statements and notes thereto and summary of significant accounting policies included in the Company’s annual report on Form 10-K for the year ended December 31, 2019. Except as noted below, there have been no material changes in the footnotes from those accompanying the audited consolidated financial statements contained in the Company’s Form 10-K for the year ended December 31, 2019. The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. Inter-company accounts and transactions have been eliminated.

NOTE 2 SIGNIFICANT ACCOUNTING POLICIES

Risks and Uncertainties

COVID-19

On March 11, the World Health Organization (“WHO”) declared the COVID-19 virus a global pandemic. As a result of the pandemic, many jurisdictions, including the United States, Canada, Mexico and Argentina, instituted restrictions on travel, public gatherings, and certain business operations. Even absent of government-mandated shut-downs, the Company was required to suspend operations at its mines to protect the health and safety of its employees and contractors. This resulted in temporary shutdowns of all or a portion of operations at all of the Company’s mine sites at the start of Q2 2020. Since that date, all of the Company’s operations, including El Gallo in Mexico, have successfully recommenced operations. In the third quarter, operations at the San José mine were again in a ramp-up phase as a result of the ongoing countrywide restrictions on the movement of people. Resumption of operations at normal capacity is expected towards the end of the year.

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MCEWEN MINING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

September 30, 2020

(tabular amounts are in thousands of U.S. dollars, unless otherwise noted) (Continued)

The temporary shutdowns adversely impacted the Company’s operations, cash flow, and liquidity in the second quarter of 2020 and some of these effects continued to be felt in the third quarter. In addition to the adverse effect on revenue, the Company incurred costs in connection with the shutdowns and subsequent ramp-up. This, in turn, adversely affected its liquidity. The long-term impact of the COVID-19 outbreak on the Company’s results of operations, financial position and cash flows will depend on future developments, including the duration and spread of the outbreak and related advisories and restrictions. These developments and the impact of COVID-19 on the global financial markets and the overall economy are highly uncertain and cannot be predicted. Achieving and maintaining normal operating capacity is also dependant on the continued availability of supplies, which is out of the Company’s control. If the financial markets and/or the overall economy are impacted for an extended period, the Company’s results of operations, financial position and cash flows may be further affected.

The Company is not able to estimate the duration of the pandemic and potential impact on its business if disruptions or delays in business developments and shipments of product occur. In addition, a severe prolonged economic downturn could result in a variety of risks to the business, including access to  capital markets when needed on acceptable terms, if at all. As the situation continues to evolve, the Company will continue to closely monitor market conditions and respond accordingly. The Company has completed various scenario planning analyses to consider potential impacts of COVID-19 on its business, including volatility in commodity prices, temporary disruptions and/or curtailments of operating activities (voluntary or involuntary).

Going Concern

The accompanying interim financial statements have been prepared on the going concern basis of accounting, which assumes that the Company will continue as a going concern and which contemplates the realization of assets and satisfaction of liabilities and commitments in the normal course of business. In the preparation of the interim financial statements, management is required to identify when events or conditions indicate that substantial doubt may exist about the Company’s ability to continue as a going concern. Substantial doubt about the Company’s ability to continue as a going concern would exist when relevant conditions and events, considered in aggregate, indicate that the Company will not be able to meet its obligations as they become due for a period of at least, but not limited to, 12 months from the most recent balance sheet date. When the Company identifies conditions or events that raise potential for substantial doubt about its ability to continue as a going concern, the Company considers whether its plans that are intended to mitigate those relevant conditions or events will alleviate the potential substantial doubt.

The Company refinanced its senior secured term loan facility (note 11) in June 2020 and also completed a flow-through financing (note 13) in September 2020 and remains in full compliance with its debt covenants as at September 30, 2020. However, based on the significant expected resource reduction at the Gold Bar mine, resulting in an initial revised mine plan which yields less cash flow, coupled with operational challenges at Black Fox, the commitment to develop the Froome access portal, flow-through spending requirements, and the disruptions to the Company’s operations caused by the COVID-19 pandemic, there is uncertainty about the Company’s ability to generate sufficient operating cash flow to both conduct further operation, exploration and development of its mineral properties and to remain in compliance with certain of its financial debt covenants, over the next 12 months. Non-compliance with these covenants would result in a breach under the Company’s debt agreement.

In response to this uncertainty, the Company is evaluating all options, including accessing capital markets, sale of certain assets, and expenditure reductions across the Company. The Company’s ability to continue as a going concern is dependent on the successful completion of one or a combination of these initiatives to ensure that the Company has sufficient liquidity in order to fund its operations and remain in compliance with its debt covenants.  After considering its plans, management has concluded that there are no material uncertainties relating to events or conditions that cast substantial doubt upon the Company’s ability to continue as a going concern for a period of 12 months from the consolidated balance sheet date. The estimates used by management in reaching this conclusion are based on information available as at the date these financial statements were authorized for issuance and include internally generated cash flow forecasts. Accordingly, actual results could differ from these estimates and resulting variances may be material to management’s assessment.

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MCEWEN MINING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

September 30, 2020

(tabular amounts are in thousands of U.S. dollars, unless otherwise noted) (Continued)

Recently Adopted Accounting Pronouncements

Accounting for Government Assistance: In June 2020, the Company analogized guidance to account for the COVID relief funds received from the United States Small Business Administration (SBA) and the Canada Revenue Agency (“CRA”). The ability to analogize standards from other GAAP sources is provisioned under ASC 105-05-2 when guidance is not provided for certain transactions under US GAAP. The adoption of the standard had a material impact on the financial statements as of September 30, 2020. Under this policy, the Company has recognized the income from the relief funds in the Statement of Operations, as the criteria for recognition of the funds have been met.

Changes to the Disclosure Requirements for Fair Value Measurement: In August 2018, the FASB issued ASU 2018- 13, “Fair Value Measurement (ASC 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement”. This update modifies the disclosure requirements for fair value measurements by removing, modifying, or adding disclosures. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019. The adoption of ASU 2018-13 in 2020 did not have a material impact on the Company’s financial statements and related disclosures.

Recently Issued Accounting Pronouncements

Income Taxes:  In December 2019, the FASB issued ASU 2019-12 “Income Taxes (Topic 740).”  ASU 2019-12 simplifies the accounting for income taxes by reducing existing complexity in accounting standards.  The update to the accounting standards is effective for the Company for the fiscal years beginning after December 15, 2020, with early adoption permitted.  The Company is currently evaluating the effect of this amendment and the impact it may have on the Company’s consolidated financial statements.

NOTE 3 OPERATING SEGMENT REPORTING

McEwen Mining Inc. is engaged in the exploration, development, production and sale of gold and silver and exploration for copper, with operations located in the United States, Canada, Mexico, and Argentina. 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 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.

Production costs applicable to sales for the El Gallo project of  $11.2 million for the nine months ended September 30, 2020 (same period in 2019 - $14.6 million) include $5.2 million of residual leaching spending in the period, net of $3.1 million capitalized in inventory (same period in 2019 - $5.7 million, net of $2.7 million capitalized in inventory) with the remainder representing costs recorded in the leach pad inventory balances in prior periods.

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

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MCEWEN MINING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

September 30, 2020

(tabular amounts are in thousands of U.S. dollars, unless otherwise noted) (Continued)

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

Three months ended September 30, 2020

    

USA

    

Canada

    

Mexico

    

MSC

    

Los Azules

    

Total

Revenue from gold and silver sales

$

13,042

$

10,352

$

4,001

$

$

$

27,395

Production costs applicable to sales

(10,791)

(8,874)

(3,861)

 

(23,526)

Depreciation and depletion

(2,099)

(2,404)

(67)

(4,570)

Gross profit (loss)

152

(926)

73

(701)

Advanced projects

(240)

(2,784)

(1,003)

 

(4,027)

Exploration

(2,395)

(1,189)

(427)

(412)

(4,423)

Income from investment in Minera Santa Cruz S.A.

2,582

 

2,582

Segment (loss) income

$

(2,483)

$

(4,899)

$

(1,357)

$

2,582

$

(412)

$

(6,569)

General and Administrative and other

(3,361)

Loss before income and mining taxes

$

(9,930)

Capital expenditures

$

106

488

$

594

Nine months ended September 30, 2020

    

USA

    

Canada

Mexico

MSC

    

Los Azules

    

Total

Revenue from gold and silver sales

$

38,129

$

27,257

$

11,700

$

$

$

77,086

Production costs applicable to sales

(38,863)

(24,231)

(11,173)

$

 

(74,267)

Depreciation and depletion

(8,527)

(7,336)

(217)

$

(16,080)

Gross (loss) profit

(9,261)

(4,310)

310

(13,261)

Advanced projects

(789)

(5,609)

(3,066)

$

 

(9,464)

Exploration

(5,235)

(4,434)

(463)

$

(1,629)

 

(11,761)

Impairment of mineral property interests and plant and equipment (note 9)

(83,805)

$

(83,805)

Loss from investment in Minera Santa Cruz S.A.

(1,139)

$

 

(1,139)

Other operating

(1,390)

(578)

(1,968)

Segment loss

$

(100,480)

$

(14,931)

$

(3,219)

$

(1,139)

$

(1,629)

$

(121,398)

General and Administrative and other

(8,661)

Loss before income and mining taxes

$

(130,059)

Capital expenditures

$

4,712

$

4,428

$

$

$

$

9,140

Three months ended September 30, 2019

    

USA

    

Canada

    

Mexico

    

MSC

    

Los Azules

    

Total

Revenue from gold and silver sales

$

16,577

$

11,147

$

4,967

$

$

$

32,691

Production costs applicable to sales

(12,156)

(7,550)

(3,878)

(23,584)

Depreciation and depletion

(3,790)

(3,589)

(109)

(7,488)

Gross profit

631

8

980

1,619

Advanced projects

(46)

(384)

(1,710)

(2,140)

Exploration

(4,253)

(8,691)

(2)

(749)

(13,695)

Loss from investment in Minera Santa Cruz S.A.

(328)

(328)

Segment loss

$

(3,668)

$

(9,067)

$

(732)

$

(328)

$

(749)

$

(14,544)

General and Administrative and other

887

Loss before income and mining taxes

$

(13,657)

Capital expenditures