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OPERATING SEGMENT REPORTING
 6 Months Ended
Jun. 30, 2021
OPERATING SEGMENT REPORTING  
OPERATING SEGMENT REPORTING

NOTE 3 OPERATING SEGMENT REPORTING

The Company is a mining and minerals production and exploration company focused on precious metals in the United States, Canada, Mexico, and Argentina. The Company’s chief operating decision maker (“CODM”) reviews the operating results, assesses performance and makes decisions about the 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 within a geographic region 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 are included in General and Administrative and other and are provided in this note for reconciliation purposes.

The CODM reviews segment income or loss, defined as gold and silver sales less production costs applicable to sales, depreciation and depletion, advanced projects and exploration costs 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.

Capital expenditures include costs capitalized in mineral property interests and plant and equipment in the respective periods.

Significant information relating to the Company’s reportable operating segments for the periods presented is summarized in the tables below:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three months ended June 30, 2021

    

USA

    

Canada

    

Mexico

    

MSC

    

Los Azules

    

Total

Revenue from gold and silver sales

​

$

26,343

​

$

12,178

​

$

2,185

​

$

—

​

$

—

​

$

40,706

Production costs applicable to sales

​

​

(21,067)

​

​

(6,331)

​

​

(3,734)

​

​

—

​

​

—

​

 

(31,132)

Depreciation and depletion

​

​

(2,326)

​

​

(3,189)

​

​

—

​

​

—

​

​

—

​

​

(5,515)

Gross profit (loss)

​

​

2,950

​

​

2,658

​

​

(1,549)

​

​

—

​

​

—

​

​

4,059

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Advanced projects

​

​

116

​

​

(564)

​

​

(375)

​

​

—

​

​

—

​

 

(823)

Exploration

​

​

(1,591)

​

​

(4,281)

​

​

(10)

​

​

—

​

​

(1,034)

​

​

(6,916)

Income from investment in Minera Santa Cruz S.A.

​

​

—

​

​

—

​

​

—

​

​

(1,853)

​

​

—

​

 

(1,853)

Other operating

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

Segment (loss) income

​

$

1,475

​

$

(2,187)

​

$

(1,934)

​

$

(1,853)

​

$

(1,034)

​

$

(5,533)

General and Administrative and other

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(1,478)

Loss before income and mining taxes

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

$

(7,011)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Capital expenditures

​

$

353

​

​

10,775

​

​

—

​

​

—

​

​

—

​

$

11,128

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Six months ended June 30, 2021

    

USA

    

​

Canada

​

Mexico

​

MSC

    

Los Azules

    

Total

Revenue from gold and silver sales

​

$

39,236

​

$

20,739

​

$

4,471

​

$

—

​

$

—

​

$

64,446

Production costs applicable to sales

​

​

(34,623)

​

​

(12,987)

​

​

(7,111)

​

​

—

​

$

—

​

 

(54,721)

Depreciation and depletion

​

​

(4,068)

​

​

(6,584)

​

​

—

​

​

—

​

$

—

​

​

(10,652)

Gross profit (loss)

​

​

545

​

​

1,168

​

​

(2,640)

​

​

—

​

​

—

​

​

(927)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Advanced projects

​

​

32

​

​

(1,188)

​

​

(1,466)

​

​

—

​

$

—

​

 

(2,622)

Exploration

​

​

(2,455)

​

​

(7,716)

​

​

(17)

​

​

—

​

$

(1,684)

​

 

(11,872)

Impairment of mineral property interests and plant and equipment (Note 8)

​

​

—

​

​

—

​

​

—

​

​

—

​

$

—

​

​

—

Loss from investment in Minera Santa Cruz S.A.

​

​

—

​

​

—

​

​

—

​

​

(2,427)

​

$

—

​

 

(2,427)

Other operating

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

Segment loss

​

$

(1,878)

​

$

(7,736)

​

$

(4,123)

​

$

(2,427)

​

$

(1,684)

​

$

(17,848)

General and Administrative and other

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(3,644)

Loss before income and mining taxes

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

$

(21,492)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Capital expenditures

​

$

1,110

​

$

20,342

​

$

—

​

$

—

​

$

—

​

$

21,452

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three months ended June 30, 2020

    

USA

    

Canada

    

Mexico

    

MSC

    

Los Azules

    

Total

Revenue from gold and silver sales

​

$

10,770

​

$

4,166

​

$

3,355

​

$

—

​

$

—

​

$

18,291

Production costs applicable to sales

​

​

(11,039)

​

​

(8,150)

​

​

(3,165)

​

​

—

​

​

—

​

​

(22,354)

Depreciation and depletion

​

​

(2,565)

​

​

(2,184)

​

​

(63)

​

​

—

​

​

—

​

​

(4,812)

Gross (loss) profit

​

​

(2,834)

​

​

(6,168)

​

​

127

​

​

—

​

​

—

​

​

(8,875)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Advanced projects

​

​

(183)

​

​

(1,760)

​

​

(944)

​

​

—

​

​

—

​

​

(2,887)

Exploration

​

​

(2,031)

​

​

(840)

​

​

(36)

​

​

—

​

​

(641)

​

​

(3,548)

Loss from investment in Minera Santa Cruz S.A.

​

​

—

​

​

—

​

​

—

​

​

(1,045)

​

​

—

​

​

(1,045)

Other operating

​

​

(1,390)

​

​

(578)

​

​

—

​

​

—

​

​

—

​

​

(1,968)

Segment loss

​

$

(6,438)

​

$

(9,346)

​

$

(853)

​

$

(1,045)

​

$

(641)

​

$

(18,323)

General and Administrative and other

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(1,521)

Loss before income and mining taxes

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

$

(19,844)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Capital expenditures

​

$

2,799

​

$

211

​

$

—

​

$

—

​

$

—

​

$

3,010

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Six months ended June 30, 2020

    

USA

    

Canada

    

Mexico

    

MSC

    

Los Azules

    

Total

Revenue from gold and silver sales

​

$

25,088

​

$

16,905

​

$

7,698

​

$

—

​

$

—

​

$

49,691

Production costs applicable to sales

​

​

(28,071)

​

​

(15,357)

​

​

(7,313)

​

​

—

​

​

—

​

​

(50,741)

Depreciation and depletion

​

​

(6,428)

​

​

(4,932)

​

​

(150)

​

​

—

​

​

—

​

​

(11,510)

Gross (loss) profit

​

​

(9,411)

​

​

(3,384)

​

​

235

​

​

—

​

​

—

​

​

(12,560)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Advanced projects

​

​

(548)

​

​

(2,826)

​

​

(2,063)

​

​

—

​

​

—

​

​

(5,437)

Exploration

​

​

(2,840)

​

​

(3,245)

​

​

(36)

​

​

—

​

​

(1,217)

​

​

(7,338)

Impairment of mineral property interests and plant and equipment (Note 8)

​

​

(83,805)

​

​

—

​

​

—

​

​

—

​

​

—

​

​

(83,805)

Loss from investment in Minera Santa Cruz S.A.

​

​

—

​

​

—

​

​

—

​

​

(3,721)

​

​

—

​

​

(3,721)

Other operating

​

​

(1,390)

​

​

(578)

​

​

—

​

​

—

​

​

—

​

​

(1,968)

Segment loss

​

$

(97,994)

​

$

(10,033)

​

$

(1,864)

​

$

(3,721)

​

$

(1,217)

​

$

(114,829)

General and Administrative and other

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(5,300)

Loss before income and mining taxes

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

$

(120,129)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Capital expenditures

​

$

4,606

​

$

3,940

​

$

—

​

$

—

​

$

—

​

$

8,546

​

​

​

Geographic Information

Geographic information includes the long-lived asset balances and revenues presented for the Company’s operating segments, as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Long-lived Assets

Revenue (1)

​

Revenue (1)

​

​

June 30,

​

December 31,

Three months ended June 30,

​

Six months ended June 30,

​

    

2021

    

2020

2021

    

2020

  

2021

​

2020

USA

​

$

42,435

​

$

46,801

$

26,343

​

$

10,770

​

$

39,236

​

$

25,088

Canada

​

​

93,039

​

​

78,986

​

12,178

​

​

4,166

​

​

20,739

​

​

16,905

Mexico

​

​

20,361

​

​

20,021

​

2,185

​

​

3,355

​

​

4,471

​

​

7,698

Argentina (2)

​

​

289,828

​

​

299,816

​

—

​

​

—

​

​

—

​

​

—

Total consolidated

​

$

445,663

​

$

445,624

$

40,706

​

$

18,291

​

$

64,446

​

$

49,691

(1)Presented based on the location from which the product originated.
(2)Includes Investment in MSC of $98.3 million as of June 30, 2021 (December 31, 2020 – $108.3 million).