XML 33 R22.htm IDEA: XBRL DOCUMENT
v3.19.1

LEASES | 3 Months Ended
--- | ---
Mar. 31, 2019
LEASES |
LEASES | NOTE 15 LEASES The Company’s lease obligations primarily consist of an office lease, equipment and vehicles. Upon adoption of ASC 842 on January 1, 2019, the Company recorded a cumulative-effect adjustment to the opening accumulated deficit balance as of January 1, 2019 of less than $0.1 million and t hese leases are now reported as a part of the Company’s plant and equipment with amortization booked on a straight-line basis over the estimated useful life of the asset. Lease liabilities representing the future lease payments for the assets are recorded within accounts payable and accrued liabilities with r elated amortization expense and interest expense recorded within the Consolidated Statements of Operations. The following tables summarize the Company’s leases as at March 31, 2019:
|  | March 31, 2019
|  | Operating lease | Finance leases
Leased asset, cost |  | $ | 1,167 |  | $ | 6,879
Accumulated amortization |  |  | (386) |  |  | (138)
Net book value |  | $ | 781 |  | $ | 6,741
|  | Three months ended March 31, 2019
|  | Operating lease | Finance leases
Interest expense |  | $ | 22 |  | $ | 120
|  |  | March 31, 2019 |  |  | Total discounted
|  |  | Weighted |  | Weighted |  |  | lease liability
|  |  | average |  | average remaining |  |  | March 31, | December 31,
|  |  | discount rate |  | lease term |  |  | 2019 | 2018
Operating lease |  |  | 8.73% |  |  | 5 | years |  |  |  | $ | 983 |  | $ | —
Finance leases |  |  | 7.70% |  |  | 3 | years |  |  |  |  | 6,338 |  |  | 6,429
|  |  |  |  |  |  |  |  |  |  | $ | 7,321 |  | $ | 6,429
The terms and conditions contained within the Company’s leases do not contain variable components. Residual values for leased assets are factored into the leases’ analysis when it is reasonably certain that the Company will purchase the asset at the end of the lease term. The Company has elected to use hindsight on the adoption of the new accounting policy and has used it to determine the lease term for its operating lease. F acts and circumstances indicated that the Company would be reasonably certain not to utilize the early termination option in the lease and accordingly assigned the lease a ten-year term upon initial assessment. The Company’s other leases did not contain options to extend the lease beyond the lease term or terminate the lease before the lease term. Significant judgment was used by the Company in applying the new lease standard in the determination of the incremental borrowing rate (“IBR”) that is used as the discount rate for the Company’s leases. I BR represents the rate of interest that a lessee would have to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term in a similar economic environment. IBR is used for calculating the present value of all the leases. Each lease’s IBR was determined by using the average bond yield ratings for comparable companies. It is updated on a continual basis in order to be applied to new leases. Significant judgement is applied in determining the Company’s credit rating that is an input to IBR. The Company has the following undiscounted lease payment obligations under its leases as of March 31, 2019:
|  | Payments due by period
|  | 2019 |  | 2020 |  | 2021 |  | 2022 |  | 2023 |  | Thereafter |  | Total
|  | (in thousands)
Operating lease obligations |  | $ | 168 |  | $ | 226 |  | $ | 231 |  | $ | 233 |  | $ | 238 |  | $ | 158 |  | $ | 1,254
Finance lease obligations |  |  | 1,502 |  |  | 1,990 |  |  | 2,055 |  |  | 1,695 |  |  | 10 |  |  | — |  |  | 7,252
Total |  | $ | 1,670 |  | $ | 2,216 |  | $ | 2,286 |  | $ | 1,928 |  | $ | 248 |  | $ | 158 |  | $ | 8,506

X
- Definition The entire disclosure of information about leases. + References No definition available. + Details
Name: | mux_LeaseDisclosureTextBlock
Namespace Prefix: | mux_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

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