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Segment Reporting | 6 Months Ended
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Jun. 30, 2020
Segment Reporting [Abstract] |
SEGMENT REPORTING | SEGMENT REPORTING The Company’s operating segments include the Palmarejo, Rochester, Kensington, Wharf and Silvertip mines. Except for the Silvertip mine, all operating segments are engaged in the discovery, mining, and production of gold and/or silver. The Silvertip mine, which temporarily suspended mining and processing activities in February 2020, is engaged in the discovery, mining, and production of silver, zinc and lead. Other includes the Sterling/Crown and La Preciosa projects, other mineral interests, strategic equity investments, corporate office, elimination of intersegment transactions, and other items necessary to reconcile to consolidated amounts. The 2019 novel strain of coronavirus causing a contagious respiratory disease known as COVID-19, which was declared a pandemic by the World Health Organization on March 11, 2020, poses a material risk to our business and operations. Early in the second quarter of 2020, we temporarily suspended active mining and processing activities at the Palmarejo complex in the State of Chihuahua, Mexico, in accordance with a government-mandated decree in response to COVID-19, and we began taking steps to restart active mining, processing and exploration activities at Palmarejo in accordance with updated guidance from the government approximately 45 days later. In addition, we are requiring all employees who travel to the Kensington mine to submit to a 7-day quarantine and testing protocol in Juneau, Alaska before traveling to the mine. We believe this is an important step to protect the health and safety of all workers who stay at the Kensington camp, although it has required changes to worker scheduling and is expected to result in higher labor costs due to additional overtime pay and pay during the quarantine period. Incremental costs associated with the Company’s COVID-19 health and safety protocols are recorded in Pre-development, reclamation, and other expenses in our Condensed Consolidated Statement of Comprehensive Income (Loss) and are included in Other operating expenses in the table below. For additional information, please see the section titled “Risk Factors” included in Item 1A. Financial information relating to the Company’s segments is as follows (in thousands):
Three months ended June 30, 2020 | Palmarejo |  | Rochester |  | Kensington |  | Wharf |  | Silvertip |  | Other |  | Total
Revenue |  |  |  |  |  |  |  |  |  |  |  |  |
Gold sales | $ | 23,669 |  |  | $ | 8,982 |  |  | $ | 55,177 |  |  | $ | 40,074 |  |  | $ | — |  |  | $ | — |  |  | $ | 127,902 |
Silver sales | 14,301 |  |  | 11,661 |  |  | — |  |  | 385 |  |  | — |  |  | — |  |  | 26,347 |
Zinc sales | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Lead sales | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Metal sales | 37,970 |  |  | 20,643 |  |  | 55,177 |  |  | 40,459 |  |  | — |  |  | — |  |  | 154,249 |
Costs and Expenses |  |  |  |  |  |  |  |  |  |  |  |  |
Costs applicable to sales(1) | 18,825 |  |  | 18,336 |  |  | 30,382 |  |  | 22,472 |  |  | — |  |  | — |  |  | 90,015 |
Amortization | 7,270 |  |  | 3,012 |  |  | 12,853 |  |  | 3,181 |  |  | 1,231 |  |  | 329 |  |  | 27,876 |
Exploration | 903 |  |  | 1,844 |  |  | 2,577 |  |  | 101 |  |  | 2,902 |  |  | 3,528 |  |  | 11,855 |
Other operating expenses | 3,179 |  |  | 1,213 |  |  | 3,519 |  |  | (118) |  |  | 9,480 |  |  | 10,018 |  |  | 27,291 |
Other income (expense) |  |  |  |  |  |  |  |  |  |  |  |  |
Fair value adjustments, net | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 10,067 |  |  | 10,067 |
Interest expense, net | (311) |  |  | (300) |  |  | (214) |  |  | (50) |  |  | (220) |  |  | (4,670) |  |  | (5,765) |
Other, net | (1,651) |  |  | (25) |  |  | (36) |  |  | (6) |  |  | 424 |  |  | 1,415 |  |  | 121 |
Income and mining tax (expense) benefit | (3,384) |  |  | — |  |  | (474) |  |  | (1,701) |  |  | (255) |  |  | 2,970 |  |  | (2,844) |
Income (loss) from continuing operations | $ | 2,447 |  |  | $ | (4,087) |  |  | $ | 5,122 |  |  | $ | 13,066 |  |  | $ | (13,664) |  |  | $ | (4,093) |  |  | $ | (1,209) |
Income (loss) from discontinued operations | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Segment assets(2) | $ | 307,215 |  |  | $ | 307,221 |  |  | $ | 180,290 |  |  | $ | 84,881 |  |  | $ | 159,995 |  |  | $ | 169,273 |  |  | $ | 1,208,875 |
Capital expenditures | $ | 4,533 |  |  | $ | 5,803 |  |  | $ | 3,909 |  |  | $ | 265 |  |  | $ | 1,949 |  |  | $ | 223 |  |  | $ | 16,682 |
(1) Excludes amortization (2) Segment assets include receivables, prepaids, inventories, property, plant and equipment, and mineral interests
Three months ended June 30, 2019 | Palmarejo |  | Rochester |  | Kensington |  | Wharf |  | Silvertip |  | Other |  | Total
Revenue |  |  |  |  |  |  |  |  |  |  |  |  |
Gold sales | $ | 33,916 |  |  | $ | 11,195 |  |  | $ | 45,161 |  |  | $ | 20,054 |  |  | $ | — |  |  | $ | — |  |  | $ | 110,326 |
Silver sales | 25,406 |  |  | 14,257 |  |  | — |  |  | 189 |  |  | 5,111 |  |  | — |  |  | 44,963 |
Zinc sales | — |  |  | — |  |  | — |  |  | — |  |  | 2,604 |  |  | — |  |  | 2,604 |
Lead sales | — |  |  | — |  |  | — |  |  | — |  |  | 4,230 |  |  | — |  |  | 4,230 |
Metal sales | 59,322 |  |  | 25,452 |  |  | 45,161 |  |  | 20,243 |  |  | 11,945 |  |  | — |  |  | 162,123 |
Costs and Expenses |  |  |  |  |  |  |  |  |  |  |  |  |
Costs applicable to sales(1) | 36,496 |  |  | 24,693 |  |  | 29,133 |  |  | 15,466 |  |  | 26,160 |  |  | — |  |  | 131,948 |
Amortization | 14,212 |  |  | 3,963 |  |  | 12,537 |  |  | 2,225 |  |  | 9,878 |  |  | 389 |  |  | 43,204 |
Exploration | 1,140 |  |  | 96 |  |  | 2,024 |  |  | — |  |  | 670 |  |  | 1,789 |  |  | 5,719 |
Other operating expenses | 1,769 |  |  | 1,346 |  |  | 410 |  |  | 753 |  |  | 386 |  |  | 7,420 |  |  | 12,084 |
Other income (expense) |  |  |  |  |  |  |  |  |  |  |  |  |
Fair value adjustments, net | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (5,296) |  |  | (5,296) |
Interest expense, net | (112) |  |  | (170) |  |  | (310) |  |  | (28) |  |  | (390) |  |  | (5,815) |  |  | (6,825) |
Other, net | (574) |  |  | 43 |  |  | (16) |  |  | 239 |  |  | (33) |  |  | 984 |  |  | 643 |
Income and mining tax (expense) benefit | (345) |  |  | (814) |  |  | — |  |  | (304) |  |  | 7,589 |  |  | (580) |  |  | 5,546 |
Income (loss) from continuing operations | 4,674 |  |  | (5,587) |  |  | 731 |  |  | 1,706 |  |  | (17,983) |  |  | (20,305) |  |  | (36,764) |
Income (loss) from discontinued operations | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Segment assets(2) | 357,415 |  |  | 274,406 |  |  | 214,096 |  |  | 104,070 |  |  | 415,333 |  |  | 170,145 |  |  | 1,535,465 |
Capital expenditures | 7,566 |  |  | 2,772 |  |  | 4,875 |  |  | 171 |  |  | 5,020 |  |  | 345 |  |  | 20,749 |
(1) Excludes amortization (2) Segment assets include receivables, prepaids, inventories, property, plant and equipment, and mineral interests
Six months ended June 30, 2020 | Palmarejo |  | Rochester |  | Kensington |  | Wharf |  | Silvertip |  | Other |  | Total
Revenue |  |  |  |  |  |  |  |  |  |  |  |  |
Gold sales | $ | 65,316 |  |  | $ | 17,648 |  |  | $ | 106,843 |  |  | $ | 65,700 |  |  | $ | — |  |  | $ | — |  |  | $ | 255,507 |
Silver sales | 46,993 |  |  | 22,400 |  |  | — |  |  | 633 |  |  | 1,230 |  |  | — |  |  | 71,256 |
Zinc sales | — |  |  | — |  |  | — |  |  | — |  |  | (662) |  |  | — |  |  | (662) |
Lead sales | — |  |  | — |  |  | — |  |  | — |  |  | 1,315 |  |  | — |  |  | 1,315 |
Metal sales | 112,309 |  |  | 40,048 |  |  | 106,843 |  |  | 66,333 |  |  | 1,883 |  |  | — |  |  | 327,416 |
Costs and Expenses |  |  |  |  |  |  |  |  |  |  |  |  |
Costs applicable to sales(1) | 54,799 |  |  | 35,292 |  |  | 60,889 |  |  | 40,295 |  |  | 17,657 |  |  | — |  |  | 208,932 |
Amortization | 20,445 |  |  | 5,916 |  |  | 24,775 |  |  | 5,625 |  |  | 6,576 |  |  | 701 |  |  | 64,038 |
Exploration | 2,395 |  |  | 2,064 |  |  | 4,349 |  |  | 105 |  |  | 3,153 |  |  | 6,175 |  |  | 18,241 |
Other operating expenses | 3,901 |  |  | 2,459 |  |  | 3,850 |  |  | 324 |  |  | 11,854 |  |  | 20,378 |  |  | 42,766 |
Other income (expense) |  |  |  |  |  |  |  |  |  |  |  |  |
Fair value adjustments, net | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,248 |  |  | 1,248 |
Interest expense, net | (466) |  |  | (568) |  |  | (523) |  |  | (101) |  |  | (479) |  |  | (8,756) |  |  | (10,893) |
Other, net | (1,698) |  |  | (78) |  |  | 35 |  |  | (19) |  |  | 1,554 |  |  | 2,208 |  |  | 2,002 |
Income and mining tax (expense) benefit | (1,097) |  |  | (43) |  |  | (474) |  |  | (2,176) |  |  | (255) |  |  | 5,140 |  |  | 1,095 |
Income (loss) from continuing operations | $ | 27,508 |  |  | $ | (6,372) |  |  | $ | 12,018 |  |  | $ | 17,688 |  |  | $ | (36,537) |  |  | $ | (27,414) |  |  | $ | (13,109) |
Income (loss) from discontinued operations | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Segment assets(2) | $ | 307,215 |  |  | $ | 307,221 |  |  | $ | 180,290 |  |  | $ | 84,881 |  |  | $ | 159,995 |  |  | $ | 169,273 |  |  | $ | 1,208,875 |
Capital expenditures | $ | 11,613 |  |  | $ | 10,861 |  |  | $ | 8,717 |  |  | $ | 674 |  |  | $ | 6,565 |  |  | $ | 460 |  |  | $ | 38,890 |
(1) Excludes amortization (2) Segment assets include receivables, prepaids, inventories, property, plant and equipment, and mineral interests
Six months ended June 30, 2019 | Palmarejo |  | Rochester |  | Kensington |  | Wharf |  | Silvertip |  | Other |  | Total
Revenue |  |  |  |  |  |  |  |  |  |  |  |  |
Gold sales | $ | 65,516 |  |  | $ | 22,248 |  |  | $ | 85,447 |  |  | $ | 43,879 |  |  | $ | — |  |  | $ | — |  |  | $ | 217,090 |
Silver sales | 47,031 |  |  | 29,574 |  |  | — |  |  | 406 |  |  | 8,066 |  |  | — |  |  | 85,077 |
Zinc sales | — |  |  | — |  |  | — |  |  | — |  |  | 8,238 |  |  | — |  |  | 8,238 |
Lead sales | — |  |  | — |  |  | — |  |  | — |  |  | 6,588 |  |  | — |  |  | 6,588 |
Metal sales | 112,547 |  |  | 51,822 |  |  | 85,447 |  |  | 44,285 |  |  | 22,892 |  |  | — |  |  | 316,993 |
Costs and Expenses |  |  |  |  |  |  |  |  |  |  |  |  |
Costs applicable to sales(1) | 69,740 |  |  | 47,147 |  |  | 61,308 |  |  | 32,858 |  |  | 52,545 |  |  | — |  |  | 263,598 |
Amortization | 28,740 |  |  | 8,000 |  |  | 24,264 |  |  | 4,906 |  |  | 18,304 |  |  | 866 |  |  | 85,080 |
Exploration | 2,150 |  |  | 186 |  |  | 2,505 |  |  | — |  |  | 731 |  |  | 3,861 |  |  | 9,433 |
Other operating expenses | 2,471 |  |  | 2,308 |  |  | 681 |  |  | 1,417 |  |  | 627 |  |  | 18,488 |  |  | 25,992 |
Other income (expense) |  |  |  |  |  |  |  |  |  |  |  |  |
Fair value adjustments, net | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 3,824 |  |  | 3,824 |
Interest expense, net | (248) |  |  | (312) |  |  | (539) |  |  | (49) |  |  | (587) |  |  | (11,544) |  |  | (13,279) |
Other, net | (1,614) |  |  | 16 |  |  | (3) |  |  | 325 |  |  | (221) |  |  | 2,200 |  |  | 703 |
Income and mining tax (expense) benefit | 946 |  |  | (670) |  |  | — |  |  | (477) |  |  | 17,340 |  |  | (2,935) |  |  | 14,204 |
Income (loss) from continuing operations | $ | 8,530 |  |  | $ | (6,785) |  |  | $ | (3,853) |  |  | $ | 4,903 |  |  | $ | (32,783) |  |  | $ | (31,670) |  |  | $ | (61,658) |
Income (loss) from discontinued operations | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | — |  |  | $ | 5,693 |  |  | $ | 5,693 |
Segment assets(2) | $ | 357,415 |  |  | $ | 274,406 |  |  | $ | 214,096 |  |  | $ | 104,070 |  |  | 415,333 |  |  | $ | 170,145 |  |  | $ | 1,535,465 |
Capital expenditures | $ | 16,242 |  |  | $ | 7,417 |  |  | $ | 14,231 |  |  | $ | 602 |  |  | 9,097 |  |  | $ | 598 |  |  | $ | 48,187 |
(1) Excludes amortization (2) Segment assets include receivables, prepaids, inventories, property, plant and equipment, and mineral interests
Assets | June 30, 2020 |  | December 31, 2019
Total assets for reportable segments | $ | 1,208,875 |  |  | $ | 1,215,783 |
Cash and cash equivalents | 70,924 |  |  | 55,645 |
Other assets | 81,281 |  |  | 107,208 |
Total consolidated assets | $ | 1,361,080 |  |  | $ | 1,378,636 |
Geographic Information
Long-Lived Assets | June 30, 2020 |  | December 31, 2019
United States | $ | 485,972 |  |  | $ | 494,286 |
Mexico | 303,504 |  |  | 312,168 |
Canada | 148,574 |  |  | 146,804 |
Other | 663 |  |  | 7,486 |
Total | $ | 938,713 |  |  | $ | 960,744 |
Revenue | Three months ended June 30, |  |  |  | Six months ended June 30, |  |
| 2020 |  | 2019 |  | 2020 |  | 2019
United States | $ | 116,279 |  |  | $ | 90,855 |  |  | $ | 213,224 |  |  | $ | 181,554 |
Mexico | 37,970 |  |  | 59,322 |  |  | 112,309 |  |  | 112,547 |
Canada | — |  |  | 11,946 |  |  | 1,883 |  |  | 22,892 |
Total | 154,249 |  |  | $ | 162,123 |  |  | $ | 327,416 |  |  | $ | 316,993 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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