XML 37 R16.htm IDEA: XBRL DOCUMENT v3.6.0.2
ACQUISITION OF EL PILAR MINE:
 12 Months Ended
Dec. 31, 2016
ACQUISITION OF EL PILAR MINE:  
ACQUISITION OF EL PILAR MINE:

NOTE 7—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. for $100.0 million, a company incorporated under the laws of Mexico whose principal holding is a 100% interest in the El Pilar mine concession. Related to this purchase, the Company paid approximately $0.4 million of acquisition related costs which was included in selling, general and administrative expenses in the statement of income in 2015. Amounts related to the acquisition in the Company's consolidated financial statements for the year ended December 31, 2015, were provisional as the purchase was still in the measurement period. The Company finalized the acquisition accounting during the third quarter of 2016, which final amounts were determined as follows:

Recognized amounts of identifiable assets acquired and liabilities assumed ($ in million)

                                                                                                                                                                                    

 

 

At September 30,
2016

 

At December 31,
2015

 

Cash

 

$
0.1

 

$
0.1

 

Trade accounts receivable

 

 
0.3

 

 
0.3

 

Mining assets

 

 
57.2

 

 
93.0

 

Value beyond proven and probable mineral reserves

 

 
29.5

 

 

—

 

Exploration cost

 

 
7.5

 

 
10.5

 

Deferred income tax asset

 

 
5.5

 

 

—

 

Deferred income tax liability

 

 
(25.0

)

 
(24.7

)

Trade accounts payable

 

 
(0.1

)

 
(3.6

)

​

​

​  

​  

​

​  

​  

​

Total identifiable net assets

 

 
75.0

 

 
75.6

 

Goodwill

 

 
25.0

 

 
24.4

 

​

​

​  

​  

​

​  

​  

​

Total paid

 

$
100.0

 

$
100.0

 

​

​

​  

​  

​

​  

​  

​

​

​

​  

​  

​

​  

​  

​

        Unless otherwise noted, all assets and liabilities acquired were measured at fair value. However, certain items such as deferred taxes continued to be measured in accordance with other applicable accounting literature.

        The Company has recorded goodwill of $25.0 million, representing the amount of the purchase price in excess of the fair value of the net assets acquired. This goodwill is attributable to future benefits that the Company expects to realize from the mine and will not be deductible for income tax purposes.