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Acquisition of El Pilar mine | 9 Months Ended
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Sep. 30, 2015
Acquisition of El Pilar mine |
Acquisition of El Pilar mine | Note 14 — Acquisition of El Pilar mine On July 6, 2015, the Company acquired 100% of the outstanding stock of Recursos Stingray de Cobre, S.A. de C.V. (“Stingray”) for $100.4 million, a company incorporated under the laws of Mexico whose principal holding is a 100% interest in the El Pilar mine concession. This acquisition is included in the Company’s financial statements as of the acquisition date. Related to this purchase the Company paid approximately $0.4 million of acquisition related costs which is induced in selling, general and administrative expenses in the statement of income. The Company expects to develop the El Pilar mine with an estimated capital budget of approximately $300 million to produce copper cathodes using the highly cost efficient and environmentally friendly SX-EW technology. The project currently contemplates average annual production of 35,000 tons of copper cathodes over an initial 13-year mine life, with start of commercial operations forecasted by 2018. Recognized amounts of identifiable assets acquired and liabilities assumed (in millions)
Financial assets |  | $ | 0.1 |
Mineral resources |  | 23.4 |
Property, plant and equipment |  | 10.5 |
Financial liabilities |  | (3.6 | )
Total identifiable net assets |  | $ | 30.4 |
Goodwill |  | $ | 70.0 |
Unless otherwise noted, all assets and liabilities acquired have been measured at fair value. However, certain items such as identifiable intangible assets, deferred taxes, and other benefits continue to be measured in accordance with other applicable accounting literature. The Company recognized the assets and liabilities of Stingray based on preliminary estimates of their acquisition date fair values. The determination of the fair values of the acquired assets and assumed liabilities (and the related determination of estimated lives of depreciable tangible and identifiable intangible assets) requires significant judgment. As such, the Company has not completed its valuation analysis and calculations in sufficient detail necessary to arrive at the final estimates of the fair value of assets acquired and liabilities assumed, along with the related allocations to goodwill and intangible assets. The fair values of certain tangible assets, intangible assets, certain contingent liabilities and residual goodwill are the most significant areas not yet finalized and therefore are subject to change. The Company expects to complete its final fair value determinations no later than June 30, 2016 Final fair value determinations may be significantly different than those reflected in these financial statements. Based on the preliminary estimate, the Company has recorded goodwill of $ 70 million, representing the amount of the purchase price in excess of the fair value of the net assets acquired. This goodwill is attributable to strategic benefits that the Company expects to realize. None of the goodwill associated with this acquisition is deductible for income tax purposes. The changes in the carrying amount of goodwill for the nine months ended September 30, 2015 are as follows (in millions):
Balance as of January 1, 2015 |  | $ | 17.0 |
Goodwill acquired |  | 70.0 |
Impairment losses |  | — |
Balance as of September 30, 2015 |  | $ | 87.0 |

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