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LEASES | 12 Months Ended
--- | ---
Dec. 31, 2023
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 two years to thirteen 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 principal finance 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. 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 Cost of sales. 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 2038 for which the Company is reasonably certain to exercise its option in line with the Çöpler LOM. The components of the Company’s leases presented in the Consolidated Balance Sheets were as follows (in thousands):
|  | December 31,
|  | 2023 |  | 2022
Finance lease right-of-use assets, net (included in Mineral properties, plant and equipment, net) |  | $ | 84,689 |  |  | $ | 101,705 |
Operating lease right-of-use assets (included in Other non-current assets) |  |  | 21,038 |  |  |  | 17,946 |
Total lease right-of-use-assets |  | $ | 105,727 |  |  | $ | 119,651 |
Short-term finance lease liabilities (included in Finance lease liabilities) |  | $ | 4,555 |  |  | $ | 3,872 |
Short-term operating lease liabilities (included in Accrued liabilities and other) |  |  | 1,545 |  |  |  | 1,976 |
Long-term finance lease liabilities (included in Finance Lease liabilities) |  |  | 86,141 |  |  |  | 102,434 |
Long-term operating lease liabilities (included in Other non-current liabilities) |  |  | 21,009 |  |  |  | 16,969 |
Total lease liabilities |  | $ | 113,250 |  |  | $ | 125,251 |
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):
|  | Year Ended December 31,
|  | 2023 |  | 2022 |  | 2021
Operating leases: |  |  |  |  |  |  |  |  |
Lease expense |  | $ | 3,648 |  |  | $ | 4,134 |  |  | $ | 2,986 |
Sublease income |  |  | (958) |  |  |  | — |  |  |  | — |
Finance leases: |  |  |  |  |  |  |  |  |
Amortization of lease cost |  |  | 5,346 |  |  |  | 5,346 |  |  |  | 2,517 |
Interest expense on lease liabilities |  |  | 4,645 |  |  |  | 4,830 |  |  |  | 274 |
Variable and short-term leases |  |  | 3,812 |  |  |  | 1,740 |  |  |  | 10,661 |
Total |  | $ | 16,493 |  |  | $ | 16,050 |  |  | $ | 16,438 |
For finance leases, amortization and interest expense is included in Interest expense. For operating leases, lease expense is included in Cost of sales for entities with production and General and administrative expense for corporate entities. 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):
|  | Year Ended December 31,
|  | 2023 |  | 2022 |  | 2021
Operating leases within cash flows from operating activities |  | $ | 2,690 |  |  | $ | 4,134 |  |  | $ | 2,986 |
Finance leases within cash flows from financing activities |  | $ | 3,870 |  |  | $ | 10,091 |  |  | $ | 10,441 |
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:
|  | Year Ended December 31,
|  | 2023 |  | 2022
Weighted-average remaining lease term - operating leases (in years) |  | 9.9 |  | 8.4
Weighted-average remaining lease term - finance leases (in years) |  | 17.1 |  | 18.1
Weighted-average discount rate - operating leases |  | 6.6 | % |  | 5.2 | %
Weighted-average discount rate - finance leases |  | 4.5 | % |  | 4.5 | %
The following is a schedule of future minimum lease payments under noncancellable finance and operating leases as of December 31, 2023 (in thousands):
|  | Operating Leases |  | Finance Leases
2024 |  | $ | 2,858 |  |  | $ | 8,532 |
2025 |  |  | 2,808 |  |  |  | 8,532 |
2026 |  |  | 3,379 |  |  |  | 8,532 |
2027 |  |  | 3,315 |  |  |  | 8,532 |
2028 |  |  | 2,899 |  |  |  | 8,532 |
Thereafter |  |  | 16,006 |  |  |  | 80,611 |
Total minimum lease payments |  | $ | 31,265 |  |  | $ | 123,271 |
Less: amounts representing interest |  |  | 8,711 |  |  |  | 32,575 |
Present value of net minimum lease payments |  |  | 22,554 |  |  |  | 90,696 |
Less: current portion of lease liabilities |  |  | 1,545 |  |  |  | 4,555 |
Long-term lease liabilities |  | $ | 21,009 |  |  | $ | 86,141 |
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 two years to thirteen 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 principal finance 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. 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 Cost of sales. 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 2038 for which the Company is reasonably certain to exercise its option in line with the Çöpler LOM. The components of the Company’s leases presented in the Consolidated Balance Sheets were as follows (in thousands):
|  | December 31,
|  | 2023 |  | 2022
Finance lease right-of-use assets, net (included in Mineral properties, plant and equipment, net) |  | $ | 84,689 |  |  | $ | 101,705 |
Operating lease right-of-use assets (included in Other non-current assets) |  |  | 21,038 |  |  |  | 17,946 |
Total lease right-of-use-assets |  | $ | 105,727 |  |  | $ | 119,651 |
Short-term finance lease liabilities (included in Finance lease liabilities) |  | $ | 4,555 |  |  | $ | 3,872 |
Short-term operating lease liabilities (included in Accrued liabilities and other) |  |  | 1,545 |  |  |  | 1,976 |
Long-term finance lease liabilities (included in Finance Lease liabilities) |  |  | 86,141 |  |  |  | 102,434 |
Long-term operating lease liabilities (included in Other non-current liabilities) |  |  | 21,009 |  |  |  | 16,969 |
Total lease liabilities |  | $ | 113,250 |  |  | $ | 125,251 |
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):
|  | Year Ended December 31,
|  | 2023 |  | 2022 |  | 2021
Operating leases: |  |  |  |  |  |  |  |  |
Lease expense |  | $ | 3,648 |  |  | $ | 4,134 |  |  | $ | 2,986 |
Sublease income |  |  | (958) |  |  |  | — |  |  |  | — |
Finance leases: |  |  |  |  |  |  |  |  |
Amortization of lease cost |  |  | 5,346 |  |  |  | 5,346 |  |  |  | 2,517 |
Interest expense on lease liabilities |  |  | 4,645 |  |  |  | 4,830 |  |  |  | 274 |
Variable and short-term leases |  |  | 3,812 |  |  |  | 1,740 |  |  |  | 10,661 |
Total |  | $ | 16,493 |  |  | $ | 16,050 |  |  | $ | 16,438 |
For finance leases, amortization and interest expense is included in Interest expense. For operating leases, lease expense is included in Cost of sales for entities with production and General and administrative expense for corporate entities. 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):
|  | Year Ended December 31,
|  | 2023 |  | 2022 |  | 2021
Operating leases within cash flows from operating activities |  | $ | 2,690 |  |  | $ | 4,134 |  |  | $ | 2,986 |
Finance leases within cash flows from financing activities |  | $ | 3,870 |  |  | $ | 10,091 |  |  | $ | 10,441 |
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:
|  | Year Ended December 31,
|  | 2023 |  | 2022
Weighted-average remaining lease term - operating leases (in years) |  | 9.9 |  | 8.4
Weighted-average remaining lease term - finance leases (in years) |  | 17.1 |  | 18.1
Weighted-average discount rate - operating leases |  | 6.6 | % |  | 5.2 | %
Weighted-average discount rate - finance leases |  | 4.5 | % |  | 4.5 | %
The following is a schedule of future minimum lease payments under noncancellable finance and operating leases as of December 31, 2023 (in thousands):
|  | Operating Leases |  | Finance Leases
2024 |  | $ | 2,858 |  |  | $ | 8,532 |
2025 |  |  | 2,808 |  |  |  | 8,532 |
2026 |  |  | 3,379 |  |  |  | 8,532 |
2027 |  |  | 3,315 |  |  |  | 8,532 |
2028 |  |  | 2,899 |  |  |  | 8,532 |
Thereafter |  |  | 16,006 |  |  |  | 80,611 |
Total minimum lease payments |  | $ | 31,265 |  |  | $ | 123,271 |
Less: amounts representing interest |  |  | 8,711 |  |  |  | 32,575 |
Present value of net minimum lease payments |  |  | 22,554 |  |  |  | 90,696 |
Less: current portion of lease liabilities |  |  | 1,545 |  |  |  | 4,555 |
Long-term lease liabilities |  | $ | 21,009 |  |  | $ | 86,141 |

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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 -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-20/tableOfContent + 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 -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-20/tableOfContent + Details
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