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LEASES | 12 Months Ended
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Dec. 31, 2021
Leases [Abstract] |
LEASES | LEASES The Company’s operating leases consist primarily of leases for office space, vehicles, and plant and mining equipment. These leases have a range of terms between three months to twenty years with renewal terms included in the contracts. Some are automatic renewals, and some are at the option of the Company. There are no restrictions placed upon the lessee by entering into these leases. The Company’s finance leases consist primarily of equipment. The Company's principal lease relates to its right to use the oxygen plant supplied by Air Liquide Gaz Sanayi ve Ticaret A.S. (the "Air Liquide Plant") at Çöpler which was assumed on the acquisition of Alacer (see Note 3). The Air Liquide Plant is used for the production, transportation and delivery of oxygen and liquid oxygen to support mining operations at Çöpler. Under the terms of the Air Liquide Plant lease, the Company pays variable monthly lease payments that depend on an index. In addition, the Company is subject to variable payments based on consumption and use which have been accounted for as non-lease components and included in Production costs. The Air Liquide Plant lease contains a non-cancellable period of 15 years ending in 2033 with options to extend for consecutive 2-year periods. The lease term used in the measurement of the Company's lease liability and right-of-use asset includes four consecutive 2-year extension periods ending in 2041 for which the Company is reasonably certain to exercise its option in line with the Çöpler LOM. The Company uses its incremental borrowing rate as the discount rate to determine the present value of the lease payments, as the leases do not have readily determinable implicit discount rates. The Company’s incremental borrowing rate is the rate of interest that it would have to borrow on a collateralized basis over a similar term and amount in a similar economic environment to pay its lease obligations. The Company determines the incremental borrowing rates for its leases by adjusting the local risk-free interest rate with a credit risk premium corresponding to its credit rating. From time to time, the Company may enter into arrangements for the construction or purchase of an asset and then enter into a financing arrangement to lease the asset. The Company recognizes leased assets and liabilities under these arrangements when it obtain control of the asset. The components of the Company’s leases presented in the Consolidated Balance Sheets were as follows (in thousands):
|  | December 31,
|  | 2021 |  | 2020
Finance lease right-of-use assets, net (included in Mineral properties, plant and equipment, net) |  | $ | 114,882 |  |  | $ | 112,808 |
Operating lease right-of-use assets (included in Other non-current assets) |  |  | 7,530 |  |  |  | 9,362 |
Total lease right-of-use-assets |  | $ | 122,412 |  |  | $ | 122,170 |
Short-term finance lease liabilities (included in Finance lease liabilities) |  | $ | 12,439 |  |  | $ | 3,568 |
Short-term operating lease liabilities (included in Accrued liabilities and other) |  |  | 2,238 |  |  |  | 1,954 |
Long-term finance lease liabilities (included in Finance Lease liabilities) |  |  | 105,965 |  |  |  | 109,544 |
Long-term operating lease liabilities (included in Other non-current liabilities) |  |  | 5,525 |  |  |  | 7,530 |
Total lease liabilities |  | $ | 126,167 |  |  | $ | 122,596 |
The components of the Company’s leases presented in the Consolidated Statements of Operations for the years ended December 31 were as follows (in thousands):
|  | Years Ended December 31,
|  | 2021 |  | 2020 |  | 2019
Operating leases |  | $ | 2,986 |  |  | $ | 1,260 |  |  | $ | 521 |
Finance leases: |  |  |  |  |  |  |  |  |
Amortization of lease cost |  |  | 2,517 |  |  |  | 92 |  |  |  | 70 |
Interest expense on lease liabilities |  |  | 274 |  |  |  | 12 |  |  |  | 14 |
Variable and short-term leases |  |  | 10,661 |  |  |  | 3,615 |  |  |  | — |
Total |  | $ | 16,438 |  |  | $ | 4,979 |  |  | $ | 605 |
For finance leases, amortization and interest expense is included in Interest expense. For operating leases, lease expense is included in Production costs for entities with production and General and administrative expense for entities without production. The components of the Company’s leases presented in the statements of cash flows for the years ended December 31 were as follows (in thousands):
|  | Years Ended December 31,
|  | 2021 |  | 2020 |  | 2019
Operating leases within cash flows from operating activities |  | $ | 2,986 |  |  | $ | 1,260 |  |  | $ | 521 |
Finance leases within cash flows from financing activities |  | $ | 10,441 |  |  | $ | 3,623 |  |  | $ | 554 |
The following is a schedule of weighted-average discount rates used to determine lease liabilities and remaining lease terms for the years ended December 31:
|  | Years Ended December 31,
|  | 2021 |  | 2020
Weighted-average remaining lease term - operating leases (in years) |  | 5.5 |  | 5.9
Weighted-average remaining lease term - finance leases (in years) |  | 19.1 |  | 20.7
Weighted-average discount rate - operating leases |  | 8.6 | % |  | 9.4 | %
Weighted-average discount rate - finance leases |  | 4.5 | % |  | 4.6 | %
The following is a schedule of future minimum lease payments under noncancellable finance and operating leases as of December 31, 2021 (in thousands):
|  | Operating Leases |  | Finance Leases
2022 |  | $ | 2,950 |  |  | $ | 16,907 |
2023 |  |  | 1,520 |  |  |  | 8,532 |
2024 |  |  | 1,374 |  |  |  | 8,532 |
2025 |  |  | 1,218 |  |  |  | 8,532 |
2026 |  |  | 1,234 |  |  |  | 8,532 |
Thereafter |  |  | 1,548 |  |  |  | 122,023 |
Total minimum lease payments |  | $ | 9,844 |  |  | $ | 173,058 |
Less: amounts representing interest |  |  | 2,081 |  |  |  | 54,654 |
Present value of net minimum lease payments |  |  | 7,763 |  |  |  | 118,404 |
Less: current portion of lease liabilities |  |  | 2,238 |  |  |  | 12,439 |
Long-term lease liabilities |  | $ | 5,525 |  |  | $ | 105,965 |
LEASES | LEASES The Company’s operating leases consist primarily of leases for office space, vehicles, and plant and mining equipment. These leases have a range of terms between three months to twenty years with renewal terms included in the contracts. Some are automatic renewals, and some are at the option of the Company. There are no restrictions placed upon the lessee by entering into these leases. The Company’s finance leases consist primarily of equipment. The Company's principal lease relates to its right to use the oxygen plant supplied by Air Liquide Gaz Sanayi ve Ticaret A.S. (the "Air Liquide Plant") at Çöpler which was assumed on the acquisition of Alacer (see Note 3). The Air Liquide Plant is used for the production, transportation and delivery of oxygen and liquid oxygen to support mining operations at Çöpler. Under the terms of the Air Liquide Plant lease, the Company pays variable monthly lease payments that depend on an index. In addition, the Company is subject to variable payments based on consumption and use which have been accounted for as non-lease components and included in Production costs. The Air Liquide Plant lease contains a non-cancellable period of 15 years ending in 2033 with options to extend for consecutive 2-year periods. The lease term used in the measurement of the Company's lease liability and right-of-use asset includes four consecutive 2-year extension periods ending in 2041 for which the Company is reasonably certain to exercise its option in line with the Çöpler LOM. The Company uses its incremental borrowing rate as the discount rate to determine the present value of the lease payments, as the leases do not have readily determinable implicit discount rates. The Company’s incremental borrowing rate is the rate of interest that it would have to borrow on a collateralized basis over a similar term and amount in a similar economic environment to pay its lease obligations. The Company determines the incremental borrowing rates for its leases by adjusting the local risk-free interest rate with a credit risk premium corresponding to its credit rating. From time to time, the Company may enter into arrangements for the construction or purchase of an asset and then enter into a financing arrangement to lease the asset. The Company recognizes leased assets and liabilities under these arrangements when it obtain control of the asset. The components of the Company’s leases presented in the Consolidated Balance Sheets were as follows (in thousands):
|  | December 31,
|  | 2021 |  | 2020
Finance lease right-of-use assets, net (included in Mineral properties, plant and equipment, net) |  | $ | 114,882 |  |  | $ | 112,808 |
Operating lease right-of-use assets (included in Other non-current assets) |  |  | 7,530 |  |  |  | 9,362 |
Total lease right-of-use-assets |  | $ | 122,412 |  |  | $ | 122,170 |
Short-term finance lease liabilities (included in Finance lease liabilities) |  | $ | 12,439 |  |  | $ | 3,568 |
Short-term operating lease liabilities (included in Accrued liabilities and other) |  |  | 2,238 |  |  |  | 1,954 |
Long-term finance lease liabilities (included in Finance Lease liabilities) |  |  | 105,965 |  |  |  | 109,544 |
Long-term operating lease liabilities (included in Other non-current liabilities) |  |  | 5,525 |  |  |  | 7,530 |
Total lease liabilities |  | $ | 126,167 |  |  | $ | 122,596 |
The components of the Company’s leases presented in the Consolidated Statements of Operations for the years ended December 31 were as follows (in thousands):
|  | Years Ended December 31,
|  | 2021 |  | 2020 |  | 2019
Operating leases |  | $ | 2,986 |  |  | $ | 1,260 |  |  | $ | 521 |
Finance leases: |  |  |  |  |  |  |  |  |
Amortization of lease cost |  |  | 2,517 |  |  |  | 92 |  |  |  | 70 |
Interest expense on lease liabilities |  |  | 274 |  |  |  | 12 |  |  |  | 14 |
Variable and short-term leases |  |  | 10,661 |  |  |  | 3,615 |  |  |  | — |
Total |  | $ | 16,438 |  |  | $ | 4,979 |  |  | $ | 605 |
For finance leases, amortization and interest expense is included in Interest expense. For operating leases, lease expense is included in Production costs for entities with production and General and administrative expense for entities without production. The components of the Company’s leases presented in the statements of cash flows for the years ended December 31 were as follows (in thousands):
|  | Years Ended December 31,
|  | 2021 |  | 2020 |  | 2019
Operating leases within cash flows from operating activities |  | $ | 2,986 |  |  | $ | 1,260 |  |  | $ | 521 |
Finance leases within cash flows from financing activities |  | $ | 10,441 |  |  | $ | 3,623 |  |  | $ | 554 |
The following is a schedule of weighted-average discount rates used to determine lease liabilities and remaining lease terms for the years ended December 31:
|  | Years Ended December 31,
|  | 2021 |  | 2020
Weighted-average remaining lease term - operating leases (in years) |  | 5.5 |  | 5.9
Weighted-average remaining lease term - finance leases (in years) |  | 19.1 |  | 20.7
Weighted-average discount rate - operating leases |  | 8.6 | % |  | 9.4 | %
Weighted-average discount rate - finance leases |  | 4.5 | % |  | 4.6 | %
The following is a schedule of future minimum lease payments under noncancellable finance and operating leases as of December 31, 2021 (in thousands):
|  | Operating Leases |  | Finance Leases
2022 |  | $ | 2,950 |  |  | $ | 16,907 |
2023 |  |  | 1,520 |  |  |  | 8,532 |
2024 |  |  | 1,374 |  |  |  | 8,532 |
2025 |  |  | 1,218 |  |  |  | 8,532 |
2026 |  |  | 1,234 |  |  |  | 8,532 |
Thereafter |  |  | 1,548 |  |  |  | 122,023 |
Total minimum lease payments |  | $ | 9,844 |  |  | $ | 173,058 |
Less: amounts representing interest |  |  | 2,081 |  |  |  | 54,654 |
Present value of net minimum lease payments |  |  | 7,763 |  |  |  | 118,404 |
Less: current portion of lease liabilities |  |  | 2,238 |  |  |  | 12,439 |
Long-term lease liabilities |  | $ | 5,525 |  |  | $ | 105,965 |

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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