XML 29 R19.htm IDEA: XBRL DOCUMENT
v3.7.0.1

OPERATING SEGMENT REPORTING | 6 Months Ended
--- | ---
Jun. 30, 2017
OPERATING SEGMENT REPORTING |
OPERATING SEGMENT REPORTING | NOTE 12 OPERATING SEGMENT REPORTING McEwen Mining is a mining and minerals exploration company focused on precious metals in Argentina, Mexico, Canada and the United States. The Company’s chief operating decision maker (“CODM”) reviews the operating results, assesses performance and makes decisions about allocation of resources to these segments at the geographic region level or major mine/project where the economic characteristics of the individual mines or projects are not alike. As a result, these operating segments also represent the Company’s reportable segments. The Company’s business activities that are not considered operating segments and not provided to the CODM for review are included in Corporate and other and are provided in this note for reconciliation purposes. The CODM reviews segment (loss) income, defined as gold and silver sales less production costs applicable to sales, mine development costs, exploration costs, property holding costs and general and administrative expenses for all segments except for the MSC segment which is evaluated based on the attributable equity income or loss. Gold and silver sales and production costs applicable to sales for the reportable segments are reported net of intercompany transactions. In the second quarter of 2017, the Company completed the acquisition of Lexam. which included a portfolio of exploration projects located in Timmins, Ontario. The performance and allocation of resources to these assets is done separately by the CODM. As a result, for the three and six months ended June 2017, the Company separately reported segment (loss) income attributable to Timmins. The updated composition of segments reflects the distinct economic characteristic of each mine/project. Significant information relating to the Company’s reportable operating segments is summarized in the tables below:
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Total
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Segment
Three months ended June 30, 2017 |  | Mexico |  | MSC |  | Los Azules |  | Nevada |  |  | Timmins |  | Income (loss)
Gold and silver sales |  | $ | 15,110 |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 15,110
Production costs applicable to sales |  |  | (8,560) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (8,560)
Mine development costs |  |  | (177) |  |  | — |  |  | — |  |  | (543) |  |  | — |  |  | (720)
Exploration costs |  |  | (1,513) |  |  | — |  |  | (841) |  |  | (447) |  |  | (130) |  |  | (2,931)
Property holding costs |  |  | (63) |  |  | — |  |  | (47) |  |  | (313) |  |  | — |  |  | (423)
General and administrative expenses |  |  | (1,040) |  |  | — |  |  | (421) |  |  | (359) |  |  | (26) |  |  | (1,846)
Loss from investment in Minera Santa Cruz S.A. (net of amortization) |  |  | — |  |  | (263) |  |  | — |  |  | — |  |  | — |  |  | (263)
Segment income (loss) |  | $ | 3,757 |  | $ | (263) |  | $ | (1,309) |  | $ | (1,662) |  | $ | (156) |  | $ | 367
Corporate and other |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other exploration |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (155)
General and administrative expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (2,232)
Depreciation |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (482)
Revision of estimates and accretion of reclamation obligations |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (116)
Interest and other expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (109)
Gain on sale of marketable equity securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 840
Unrealized gain on derivatives |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (722)
Foreign currency gain |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,050
Net loss before income taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | (1,559)
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Total
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Segment
Six months ended June 30, 2017 |  | Mexico |  | MSC |  | Los Azules |  | Nevada |  |  | Timmins |  | Income (loss)
Gold and silver sales |  | $ | 29,943 |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 29,943
Production costs applicable to sales |  |  | (15,544) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (15,544)
Mine development costs |  |  | (332) |  |  | — |  |  | — |  |  | (1,503) |  |  | — |  |  | (1,835)
Exploration costs |  |  | (3,052) |  |  | — |  |  | (7,142) |  |  | (931) |  |  | (130) |  |  | (11,255)
Property holding costs |  |  | (1,045) |  |  | — |  |  | (48) |  |  | (518) |  |  | — |  |  | (1,611)
General and administrative expenses |  |  | (1,879) |  |  | — |  |  | (629) |  |  | (785) |  |  | (26) |  |  | (3,319)
Loss from investment in Minera Santa Cruz S.A. (net of amortization) |  |  | — |  |  | (73) |  |  | — |  |  | — |  |  | — |  |  | (73)
Segment income (loss) |  | $ | 8,091 |  | $ | (73) |  | $ | (7,819) |  | $ | (3,737) |  | $ | (156) |  | $ | (3,694)
Corporate and other |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other exploration |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (275)
General and administrative expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (5,052)
Depreciation |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (809)
Revision of estimates and accretion of reclamation obligations |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (221)
Interest and other expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (175)
Gain on sale of assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 11
Gain on sale of marketable equity securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 840
Unrealized gain on derivatives |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,069
Foreign currency gain |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,075
Net loss before income taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | (7,231)
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Total
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Segment
Three months ended June 30, 2016 |  | Mexico |  | MSC |  | Los Azules |  | Nevada |  |  | Timmins |  | Income (loss)
Gold and silver sales |  | $ | 14,613 |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 14,613
Production costs applicable to sales |  |  | (5,763) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (5,763)
Mine development costs |  |  | (619) |  |  | — |  |  | — |  |  | (697) |  |  | — |  |  | (1,316)
Exploration costs |  |  | (860) |  |  | — |  |  | (193) |  |  | (599) |  |  | — |  |  | (1,652)
Property holding costs |  |  | — |  |  | — |  |  | (82) |  |  | (176) |  |  |  |  |  | (258)
General and administrative expenses |  |  | (770) |  |  | — |  |  | (146) |  |  | (52) |  |  | — |  |  | (968)
Income from investment in Minera Santa Cruz S.A. (net of amortization) |  |  | — |  |  | 4,133 |  |  | — |  |  | — |  |  | — |  |  | 4,133
Segment income (loss) |  | $ | 6,601 |  | $ | 4,133 |  | $ | (421) |  | $ | (1,524) |  | $ | — |  | $ | 8,789
Corporate and other |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other exploration |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (37)
General and administrative expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (1,632)
Depreciation |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (258)
Revision of estimates and accretion of reclamation obligations |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (133)
Interest and other expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (73)
Other-than-temporary impairment on marketable equity securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (597)
Unrealized gain on derivatives |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,719
Foreign currency gain |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (281)
Net income before income taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 7,497
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Total
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Segment
Six months ended June 30, 2016 |  | Mexico |  | MSC |  | Los Azules |  | Nevada |  |  | Timmins |  | Income (loss)
Gold and silver sales |  | $ | 35,803 |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 35,803
Production costs applicable to sales |  |  | (14,830) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (14,830)
Mine development costs |  |  | (697) |  |  | — |  |  | — |  |  | (1,317) |  |  | — |  |  | (2,014)
Exploration costs |  |  | (1,645) |  |  | — |  |  | (503) |  |  | (1,187) |  |  | — |  |  | (3,335)
Property holding costs |  |  | (831) |  |  | — |  |  | (174) |  |  | (400) |  |  | — |  |  | (1,405)
General and administrative expenses |  |  | (1,489) |  |  | — |  |  | (185) |  |  | (107) |  |  | — |  |  | (1,781)
Income from investment in Minera Santa Cruz S.A. (net of amortization) |  |  | — |  |  | 9,096 |  |  | — |  |  | — |  |  | — |  |  | 9,096
Segment income (loss) |  | $ | 16,311 |  | $ | 9,096 |  | $ | (862) |  | $ | (3,011) |  | $ | — |  | $ | 21,534
Corporate and other |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other exploration |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (94)
General and administrative expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (3,587)
Depreciation |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (497)
Revision of estimates and accretion of reclamation obligations |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (257)
Interest and other income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 155
Other-than-temporary impairment on marketable equity securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (882)
Gain on sale of marketable securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 22
Unrealized gain on derivatives |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,719
Foreign currency gain |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 502
Net income before income taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 18,615
Geographic information
|  | Revenue(1)
|  | Three months ended June 30, |  | Six months ended June 30,
|  | 2017 |  | 2016 |  |  | 2017 |  | 2016
Mexico |  |  | 15,110 |  |  | 14,613 |  |  | 29,943 |  |  | 35,803
Total consolidated |  | $ | 15,110 |  | $ | 14,613 |  | $ | 29,943 |  | $ | 35,803
|  | Long-lived Assets as at
|  | June 30, |  | December 31
|  | 2017 |  | 2016
Canada |  | $ | 42,587 |  | $ | 663
Mexico |  |  | 36,684 |  |  | 27,582
USA |  |  | 37,114 |  |  | 37,620
Argentina(2) |  |  | 348,813 |  |  | 353,879
Total consolidated |  | $ | 465,198 |  | $ | 419,744
(1)Presented based on the location from which the product originated. (2)Includes Investment in MSC of $157.3 million as of June 30, 2017 (December 31, 2016 - $162.3 million).

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration