11 unchanged sentences
The Company’s profitability and cash flow may be significantly impacted by changes in the market price of gold, silver, zinc and lead.
−Removed: Gold, Silver, Zinc and Lead Hedging
−Removed: To mitigate the risks associated with gold, silver, zinc and lead price fluctuations, the Company may enter into option contracts to hedge future production.
+Added: To mitigate the risks associated with metal price fluctuations, the Company may enter into option contracts to hedge future production.
The Company had outstanding Asian put and call option contracts in net-zero-cost collar contracts on 132,000 ounces of gold at December 31, 2021 that settle monthly through December 2022.
−Removed: The Company is targeting to hedge up to 50% of expected gold production through 2021 and 2022 and may in the future layer on additional hedges as circumstances warrant.
+Added: The Company is targeting to hedge up to 70% of expected gold production through 2022 in order to protect cash flow during a period of elevated capital expenditures, and may in the future layer on additional hedges as circumstances warrant.
The weighted average strike prices on the put and call contracts are $1,630 and $2,038 per ounce of gold, respectively.
4 unchanged sentences
The Company does not anticipate non-performance by any of its counterparties.
−Removed: For additional information, please see the section titled “Risk Factors” in Item 1A of this report.
+Added: For additional information, please see the section titled “Risk Factors” in the 2021 10-K and part II, Item 1A of this report.
At December 31, 2021, the fair value of the put and call zero cost collars contracts was a liability of $1.2 million.
For the year ended December 31, 2021 the Company recognized a loss of $0.9 million related to expired options in Revenue and the remaining outstanding options were included in accumulated other comprehensive income (loss) .
−Removed: A 10% increase in the price of gold at December 31, 2020 would result in a realized loss of $39.4 million a nd 10% decrease would result in no realized gain or loss.
+Added: A 10% increase in the price of gold at December 31, 2021 would result in a realized loss of $1.7 million a nd 10% decrease would result in a realized gain of $2.3 million .
As of December 31, 2021, the closing price of gold was $1,806 per ounce.
As of February 14, 2022, the closing price of gold was $1,866 per ounce.
−Removed: Provisional Gold, Silver, Zinc and Lead Sales
+Added: Provisional Metal Sales
The Company enters into sales contracts with third-party smelters and refiners which, in some cases, provide for a provisional payment based upon preliminary assays and quoted metal prices.
1 unchanged sentence
Depending on the difference between the price at the time of sale and the final settlement price, embedded derivatives are recorded as either a derivative asset or liability.
−Removed: The embedded derivatives do not qualify for hedge accounting and, as a result, are marked to the market gold, silver, zinc and lead price at the end of each period from the provisional sale date to the date of final settlement.
+Added: The embedded derivatives do not qualify for hedge accounting and, as a result, are marked to the market gold and silver price at the end of each period from the provisional sale date to the date of final settlement.
The mark-to-market gains and losses are recorded in earnings.
At December 31, 2021, the Company had outstanding provisionally priced sales of 16,393 ounces of gold at an average price of $1,798.
−Removed: Changes in gold prices resulted in provisional pricing mark-to-market gain of $1.0 million during the year ended December 31, 2020.
+Added: Changes in gold prices resulted in provisional pricing mark-to-market loss of $0.5 million during the year ended December 31, 2021.
A 10% change in realized gold prices would cause revenue to vary by $2.9 million.
7 unchanged sentences
To manage foreign currency risk, the Company may enter into foreign currency forward exchange contracts.
−Removed: At December 31, 2020, the Company entered into foreign currency forward contracts to manage this risk and designated these instruments as cash flow hedges of forecasted foreign denominated transactions.
−Removed: The Company had outstanding foreign currency forward exchange contracts to receive $1.5 billion Mexican Pesos at December 31, 2020 with an average exchange rate of 24.99 that settle monthly through December 2021.
−Removed: At December 31, 2020, the fair value of the foreign currency forward exchange contracts was a net asset of $13.7 million.
−Removed: For the year ended December 31, 2020 the Company has recognized a gain of $6.2 million related to expired options in Cost Applicable to Sales and Pre-development, Reclamation and Othe r, respectively, and an unrealized gain of $13.7 million related to outstanding options in AOCI.
−Removed: A 10% increase or decrease in the exchange rates at December 31, 2020 would result in a realized gain of $7.3 million or $16.9 million, respectively.
+Added: In 2020, the Company entered into foreign currency forward contracts to manage this risk and designated these instruments as cash flow hedges of forecasted foreign denominated transactions.
+Added: The Company had no outstanding foreign currency forward exchange contracts at December 31, 2021.
Interest Rates
7 unchanged sentences
The Company had no outstanding interest rate swaps at December 31, 2021.
+Added: Investment Risk
+Added: Equity Price Risk
+Added: We are exposed to changes in the fair value of our investments in equity securities.
+Added: For the year ended December 31, 2021, the Company recognized unrealized losses of $11.2 million in Fair value adjustments, net due to decreases in the stock price of those equity securities.
+Added: At December 31, 2021, the fair value of the equity securities was $132.2 million.
+Added: A 10% change in realized equity prices would result in an unrealized gain or loss of $13.2 million.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.