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Deferred Consideration (Tables)

12 Months Ended

Dec. 31, 2020

Summary of valuation of deferred consideration

The Company determined the present value of the deferred consideration of $230,137 and $173,024 at December 31, 2020 and December 31, 2019 using the following assumptions:


	December 31, 2020			December 31, 2019
Forward-looking gold price (low) – per ounce	$	1,903		$	1,535
Forward-looking gold price (high) – per ounce	$	2,662		$	2,328
Forward-looking gold price (weighted average) – per ounce	$	2,117		$	1,757
Discount rate		9.0	%		10.0	%
Perpetual growth rate		0.9	%		1.5	%

Schedule of Deferred Consideration

During the years ended December 31, 2020 and 2019, the Company recognized the following in respect of deferred consideration:


	Years Ended December 31,
	2020			2019
Contractual Gold Payments	$	16,811		$	13,226
Contractual Gold Payments – gold ounces paid		9,500			9,500
Loss on revaluation of deferred consideration – gold payments (1)	$	(56,821	)	$	(11,293	)

(1)

Losses arise due to increases in the forward-looking price of gold and the magnitude of any loss is highly correlated to the magnitude of the change in the forward-looking price of gold.

In addition, losses arise due to increases in the perpetual growth rate and a reduction in the discount rate used to compute the present value of the annual payment obligations.