Item 1A -- Risk Factors of the 2021 10-K sets forth information relating to important risks and uncertainties that could materially adversely affect the Company’s business, financial condition or operating results.
−Removed: Those risk factors have been supplemented and updated in this Form 10-Q.
−Removed: Except as supplemented and updated below, the risk factors set forth in the 2021 10-K remain current.
+Added: Those risk factors have been supplemented and updated in the Company’s Form 10-Q for the quarter ended March 31, 2022 (the “Q1 2022 10-Q”) and in this Form 10-Q.
+Added: Except as supplemented and updated in the Q1 2022 10-Q and below, the risk factors set forth in the 2021 10-K remain current.
Additional risks and uncertainties that the Company does not presently know or that it currently deems immaterial also may impair our business operations.
−Removed: Our operations outside the United States also expose us to economic and operational risks.
−Removed: Our operations outside the United States also expose us to economic and operational risks.
−Removed: Local economic conditions, as well as epidemics, pandemics or natural disasters, can cause shortages of skilled workers and supplies, increase costs and adversely affect the security of operations.
−Removed: In addition, higher incidences of criminal activity and violence in the area of some of our foreign operations, including drug cartel-related violence in Mexico, could adversely affect our ability to operate in an optimal fashion and may impose greater risks of extortion, theft and greater risks to our personnel, supply of goods and services to our operations and our property.
−Removed: These conditions, including security concerns in certain communities surrounding the Palmarejo complex in early 2022 impacting third party deliveries of supplies to Palmarejo, could adversely impact our operations and lead to lower productivity and higher costs, which would adversely affect results of operations and cash flows.
−Removed: In addition, acts of civil disobedience are not uncommon in areas in Mexico where our operations or projects are located.
−Removed: In recent years, many mining companies have been the targets of actions to restrict their legally entitled access to mining concessions or property.
−Removed: Such acts of civil disobedience often occur with no warning and can result in significant direct and indirect costs.
−Removed: We cannot provide assurance that there will be no disruptions to site access in the future, which could adversely affect our business.
−Removed: We sell silver and gold doré, gold concentrate, and silver, zinc and lead concentrates in U.S.
−Removed: dollars, but we conduct operations outside the United States in local currency.
−Removed: Currency exchange movements could also adversely affect our results of operations.
We are required to obtain and renew governmental permits in order to conduct operations, a process which is often costly and time-consuming.
Our ability to obtain necessary government permits to expand operations or begin new operations may be materially affected by third-party activists.
−Removed: In the normal course of our business, we are required to obtain and renew governmental permits for exploration, operations and expansion of existing operations and for the development of new projects, such as the permits recently obtained for POA 11 at Rochester, POA 1 at Kensington and the permitting effort currently underway at Palmarejo.
+Added: In the normal course of our business, we are required to obtain and renew governmental permits for exploration, operations and expansion of existing operations and for the development of new projects, such as the permits recently obtained for POA 11 at Rochester, POA 1 at Kensington and the permitting effort currently underway at Palmarejo to allow the deposit of future tailings into the legacy open pit rather than expand the current tailings impoundment facility.
Obtaining and renewing governmental permits is a complex and time-consuming process.
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Any unexpected delays or costs associated with the permitting process could delay the development or impede the operation of a mine, which in turn could materially adversely affect our revenues and future growth.
+Added: For example, we are currently experiencing prolonged delays by the Mexican federal environmental authority, SEMARNAT, in approving the permit described above to deposit future tailings into the legacy open pit at Palmarejo.
+Added: We believe we have complied with all applicable requirements for the issuance of the permit, and expected to receive it last year.
+Added: As has been publicized in media coverage, we understand that other mining projects in Mexico are also experiencing permitting delays or, in certain circumstances, denials of permits.
+Added: We are engaging in advocacy with government authorities to advance our permit application, which we believe has satisfied all criteria for approval, but there can be no assurance as to the timing of approval.
+Added: Any further delay in obtaining the permit may require us to revise mine plans to curtail expected production at Palmarejo due to shortfalls in tailings storage capacity, which could materially adversely affect 2023 results of operations and cash flow.
In addition, key permits and approvals may be revoked or suspended or may be changed in a manner that adversely affects our operations.
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Our ability to obtain permits and approvals and to successfully operate in particular communities may be adversely impacted by real or perceived detrimental events associated with our activities or those of other mining companies affecting the environment, human health and safety of communities in which we operate.
−Removed: If future permitting applications or amendments are not approved on a timely basis or at all, or if the permitting process is delayed for any reason, including to address public comments, our plans for continued operations and future growth could be materially adversely affected, which could have a material adverse effect on our financial condition and results of operations.
Mine Safety Disclosures
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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.