XML 47 R19.htm IDEA: XBRL DOCUMENT v3.8.0.1
Mineral Properties and Exploration and Evaluation Assets
 12 Months Ended
Dec. 31, 2017
Disclosure of detailed information about property, plant and equipment [line items]  
Plant and Equipment

15. Plant and Equipment





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Machinery and equipment

 

Land, buildings and leasehold improvements

 

Furniture and other equipment

 

Transport units

 

Equipment under finance lease

 

Capital work in progress

 

Total

COST

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, January 1, 2017

 

$

 57,685 

 

$

 132,067 

 

$

 15,848 

 

$

 1,095 

 

$

 7,810 

 

$

 941 

 

$

 215,446 

Additions

 

 

 3,290 

 

 

 276 

 

 

 726 

 

 

 108 

 

 

 -

 

 

 10,812 

 

 

 15,212 

Disposals

 

 

 (3,461)

 

 

 (1,184)

 

 

 (3,006)

 

 

 (110)

 

 

 (515)

 

 

 (730)

 

 

 (9,006)

Reclassifications

 

 

 4,703 

 

 

 579 

 

 

 (7,253)

 

 

 70 

 

 

 -

 

 

 1,898 

 

 

 (3)

Balance, December 31, 2017

 

$

 62,217 

 

$

 131,738 

 

$

 6,315 

 

$

 1,163 

 

$

 7,295 

 

$

 12,921 

 

$

 221,649 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ACCUMULATED IMPAIRMENT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, January 1, 2017

 

$

 3,776 

 

$

 16,154 

 

$

 2,365 

 

$

 -

 

$

 475 

 

$

 -

 

$

 22,770 

Disposals

 

 

 (1)

 

 

 -

 

 

 -

 

 

 -

 

 

 (75)

 

 

 -

 

 

 (76)

Impairment reversal (note 14)

 

 

 (3,775)

 

 

 (16,154)

 

 

 (2,365)

 

 

 -

 

 

 (400)

 

 

 -

 

 

 (22,694)

Balance, December 31, 2017

 

$

 -

 

$

 -

 

$

 -

 

$

 -

 

$

 -

 

$

 -

 

$

 -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ACCUMULATED DEPRECIATION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, January 1, 2017

 

$

 17,864 

 

$

 33,479 

 

$

 6,748 

 

$

 576 

 

$

 3,146 

 

$

 -

 

$

 61,813 

Disposals

 

 

 (2,549)

 

 

 (448)

 

 

 (1,507)

 

 

 (101)

 

 

 (440)

 

 

 -

 

 

 (5,045)

Reclassifications

 

 

 3,907 

 

 

 -

 

 

 (3,920)

 

 

 13 

 

 

 -

 

 

 -

 

 

 -

Impairment reversal (note 14)

 

 

 2,449 

 

 

 6,484 

 

 

 1,253 

 

 

 -

 

 

 251 

 

 

 -

 

 

 10,437 

Depreciation

 

 

 5,899 

 

 

 12,838 

 

 

 1,316 

 

 

 174 

 

 

 553 

 

 

 -

 

 

 20,780 

Balance, December 31, 2017

 

$

 27,570 

 

$

 52,353 

 

$

 3,890 

 

$

 662 

 

$

 3,510 

 

$

 -

 

$

 87,985 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET BOOK VALUE, December 31, 2017

 

$

 34,647 

 

$

 79,385 

 

$

 2,425 

 

$

 501 

 

$

 3,785 

 

$

 12,921 

 

$

 133,664 





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Machinery and equipment

 

Buildings and leasehold improvements

 

Furniture and other equipment

 

Transport units

 

Equipment under finance lease

 

Capital work in progress

 

Total

COST

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, January 1, 2016

 

$

 28,462 

 

$

 94,872 

 

$

 15,476 

 

$

 711 

 

$

 5,215 

 

$

 38,792 

 

$

 183,528 

Acquisition of subsidiary

 

 

 6,954 

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 6,954 

Additions

 

 

 1,627 

 

 

 258 

 

 

 368 

 

 

 181 

 

 

 2,013 

 

 

 21,849 

 

 

 26,296 

Disposals

 

 

 (211)

 

 

 -

 

 

 (106)

 

 

 (64)

 

 

 (75)

 

 

 -

 

 

 (456)

Reclassifications

 

 

 20,853 

 

 

 36,937 

 

 

 110 

 

 

 267 

 

 

 657 

 

 

 (59,700)

 

 

 (876)

Balance, December 31, 2016

 

$

 57,685 

 

$

 132,067 

 

$

 15,848 

 

$

 1,095 

 

$

 7,810 

 

$

 941 

 

$

 215,446 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ACCUMULATED IMPAIRMENT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, January 1, 2016

 

$

 3,784 

 

$

 16,154 

 

$

 2,405 

 

$

 -

 

$

 483 

 

$

 -

 

$

 22,826 

Disposals

 

 

 (8)

 

 

 -

 

 

 (40)

 

 

 -

 

 

 (8)

 

 

 -

 

 

 (56)

Balance, December 31, 2016

 

$

 3,776 

 

$

 16,154 

 

$

 2,365 

 

$

 -

 

$

 475 

 

$

 -

 

$

 22,770 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ACCUMULATED DEPRECIATION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, January 1, 2016

 

$

 14,816 

 

$

 24,466 

 

$

 4,387 

 

$

 505 

 

$

 2,845 

 

$

 -

 

$

 47,019 

Disposals

 

 

 (199)

 

 

 -

 

 

 (64)

 

 

 (60)

 

 

 (67)

 

 

 -

 

 

 (390)

Reclassifications

 

 

 12 

 

 

 2 

 

 

 (14)

 

 

 -

 

 

 -

 

 

 -

 

 

 -

Depreciation

 

 

 3,235 

 

 

 9,011 

 

 

 2,439 

 

 

 131 

 

 

 368 

 

 

 -

 

 

 15,184 

Balance, December 31, 2016

 

$

 17,864 

 

$

 33,479 

 

$

 6,748 

 

$

 576 

 

$

 3,146 

 

$

 -

 

$

 61,813 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET BOOK VALUE, December 31, 2016

 

$

 36,045 

 

$

 82,434 

 

$

 6,735 

 

$

 519 

 

$

 4,189 

 

$

 941 

 

$

 130,863 





Mineral Properties and Exploration and Evaluation Assets [member]  
Disclosure of detailed information about property, plant and equipment [line items]  
Plant and Equipment

13. Mineral Properties and Exploration and Evaluation Assets





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

Depletable

 

 

Not depleted

 

 

 



 

Caylloma

 

San Jose

 

Lindero

 

Other

 

Total

COST

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, January 1, 2017

 

$

 100,630 

 

$

 151,259 

 

$

 130,590 

 

$

 1,844 

 

$

 384,323 

Additions

 

 

 10,599 

 

 

 13,888 

 

 

 9,234 

 

 

 2,508 

 

 

 36,229 

Change in rehabilitation provision

 

 

 1,448 

 

 

 (931)

 

 

 301 

 

 

 -

 

 

 818 

Disposals

 

 

 -

 

 

 -

 

 

 -

 

 

 (202)

 

 

 (202)

Reclassifications

 

 

 (8)

 

 

 (18)

 

 

 29 

 

 

 -

 

 

 3 

Balance, December 31, 2017

 

$

 112,669 

 

$

 164,198 

 

$

 140,154 

 

$

 4,150 

 

$

 421,171 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ACCUMULATED IMPAIRMENT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, January 1, 2017

 

$

 31,900 

 

$

 -

 

$

 -

 

$

 -

 

$

 31,900 

Impairment reversal (note 14)

 

 

 (31,900)

 

 

 -

 

 

 -

 

 

 -

 

 

 (31,900)

Balance, December 31, 2017

 

$

 -

 

$

 -

 

$

 -

 

$

 -

 

$

 -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ACCUMULATED DEPLETION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, January 1, 2017

 

$

 42,059 

 

$

 46,829 

 

$

 -

 

$

 -

 

$

 88,888 

Impairment reversal (note 14)

 

 

 13,038 

 

 

 -

 

 

 -

 

 

 -

 

 

 13,038 

Depletion

 

 

 5,956 

 

 

 16,677 

 

 

 -

 

 

 -

 

 

 22,633 

Balance, December 31, 2017

 

$

 61,053 

 

$

 63,506 

 

$

 -

 

$

 -

 

$

 124,559 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET BOOK VALUE, December 31, 2017

 

$

 51,616 

 

$

 100,692 

 

$

 140,154 

 

$

 4,150 

 

$

 296,612 







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Depletable

 

Not depleted

 

 

 



 

 

Caylloma

 

 

San Jose

 

 

Lindero

 

 

Other

 

 

Total

COST

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, January 1, 2016

 

$

 92,973 

 

$

 136,666 

 

$

 -

 

$

 1,533 

 

$

 231,172 

Acquisition of subsidiary

 

 

 -

 

 

 -

 

 

 128,687 

 

 

 -

 

 

 128,687 

Additions

 

 

 7,060 

 

 

 14,643 

 

 

 1,795 

 

 

 942 

 

 

 24,440 

Change in rehabilitation provision

 

 

 597 

 

 

 (414)

 

 

 108 

 

 

 -

 

 

 291 

Disposals

 

 

 -

 

 

 (512)

 

 

 -

 

 

 (631)

 

 

 (1,143)

Reclassifications

 

 

 -

 

 

 876 

 

 

 -

 

 

 -

 

 

 876 

Balance, December 31, 2016

 

$

 100,630 

 

$

 151,259 

 

$

 130,590 

 

$

 1,844 

 

$

 384,323 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ACCUMULATED IMPAIRMENT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, January 1, 2016

 

$

 31,900 

 

$

 -

 

$

 -

 

$

 -

 

$

 31,900 

Balance, December 31, 2016

 

$

 31,900 

 

$

 -

 

$

 -

 

$

 -

 

$

 31,900 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ACCUMULATED DEPLETION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, January 1, 2016

 

$

 37,552 

 

$

 33,000 

 

$

 -

 

$

 -

 

$

 70,552 

Depletion

 

 

 4,507 

 

 

 13,829 

 

 

 -

 

 

 -

 

 

 18,336 

Balance, December 31, 2016

 

$

 42,059 

 

$

 46,829 

 

$

 -

 

$

 -

 

$

 88,888 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET BOOK VALUE, December 31, 2016

 

$

 26,671 

 

$

 104,430 

 

$

 130,590 

 

$

 1,844 

 

$

 263,535 



The assets of Bateas  (Caylloma) and Cuzcatlan (San Jose), and their holding companies, are pledged as security under the Company’s credit facility.

(a) Exploration and Evaluation Assets



Included in mineral properties are exploration and evaluation assets which are categorized as not  depleted other in the above tables.  The Company is currently conducting exploration and evaluation activities on the following properties:

(i)Tlacolula Property

On August 2, 2017, the Company completed a Purchase and Sale Agreement with Radius Gold Inc. to acquire the Tlacolula gold property (the “Property”) for total consideration of $1,328, comprising of $150 cash and the issuance of 239,385 common shares valued at $1,128. Radius was granted a 2% NSR royalty on the Property, of which one-half of the royalty can be purchased for $1,500.



During the year ended December 31, 2017, the Company spent $158 on the Property, which has been capitalized as part of mineral properties. 

(ii) Northwest Nevada Initiative

In December 2016, the Company entered into an option agreement with an unrelated party to acquire 6,756 mineral claims in north west Nevada, USA, totaling 239,128 acres (96,773 hectares).



To maintain this agreement, the Company is required to make cash payments totaling $2,300, a combination of cash and shares of $4,100 and spend $2,000 in exploration expenditures by December 6, 2020. A further success payment is required if the Company completes an economic study on a potential mine if certain minimum technical parameters based on resource size and rate of return are met.



During the year ended December 31, 2017, the Company completed a drilling program with less than encouraging results and decided to terminate the option agreement and wrote-off the carrying value of the Property.







 

 

 



 

 

 

Balance, December 31, 2016

 

$

 200 

Exploration expenditures during the year

 

 

 1,410 



 

 

 1,610 

Less: charged to exploration expenses

 

 

 (1,301)

Less:  transferred to accounts receivable

 

 

 (109)



 

 

 200 

Less: write-off

 

 

 (200)

Balance December 31, 2017

 

$

 -



(b) Lindero Gold Project



On July 28, 2016, Fortuna Silver Mines Inc. acquired all the issued and outstanding common shares of Goldrock Mines Corp. ("Goldrock"), a public company listed on the TSX Venture Exchange, by issuing 14,569,045 common shares and 1,514,677 warrants, exercisable at C$6.01 per common share and expiring on October 31, 2018. Goldrock's principal asset is the 100% owned Lindero Gold Project located in Salta Province, Argentina. This acquisition has been accounted for as an asset purchase, as Goldrock Mines Corp. and its subsidiaries did not meet the definition of a business as defined in IFRS 3 «Business Combinations».



The following summarizes the consideration paid and estimates of fair value of assets acquired and liabilities assumed:







 

 

 

 

 

 

Consideration:

 

 

 

 

 

 

14,569,045 common shares of the Company

 

 

 

 

$

 122,813 

1,514,677 warrants

 

 

 

 

 

 7,401 

Costs of the transaction

 

 

 8,226 

 

 

 

Cash of Goldrock received

 

 

 (528)

 

 

 

Costs of the transaction paid by Goldrock prior to closing

 

 

 (2,822)

 

 

 4,876 



 

 

 

 

$

 135,090 

 

 

 

 

 

 

 

Assets acquired and liabilities assumed:

 

 

 

 

 

 

Accounts receivable

 

 

 

 

$

 249 

Machinery and Equipment

 

 

 

 

 

 6,954 

Accounts payable

 

 

 

 

 

 (700)

Closure and rehabilitation provisions

 

 

 

 

 

 (100)

Lindero Gold Project

 

 

 

 

 

 128,687 



 

 

 

 

$

 135,090 



The cash used for the purchase of the Lindero Gold Project was as follows:







 

 

 

 

 

 

Total consideration

 

 

 

 

$

 135,090 

less: Non-cash issuance of common shares

 

 

 

 

 

 (122,813)

less: Non-cash issuance of warrants

 

 

 

 

 

 (7,401)



 

 

 

 

$

 4,876 

Comprising:

 

 

 

 

 

 

Cash transaction costs

 

 

 

 

$

 5,404 

less: Cash of Goldrock received

 

 

 

 

 

 (528)



 

 

 

 

$

 4,876 

The consideration was determined based on the fair value of the Company’s shares at the closing date of the acquisition, plus the estimated fair value of warrants issued and transaction costs incurred. The warrants were accounted for under IFRS 2 «Share-based Payment», and are treated as equity settled share-based payments. The corresponding credit has been recorded in equity. The purchase price was allocated to the assets acquired and liabilities assumed on a relative fair value basis.



On September 21, 2017, the Board of Directors approved the construction of the Lindero Gold Project, and the expenditures related to this project are no longer classified as an exploration and evaluation asset.