7 unchanged sentences
Actual results and actions could differ materially from those discussed below.
−Removed: Gold, Silver, Zinc and Lead Prices
−Removed: Gold, silver, zinc and lead prices may fluctuate widely due to numerous factors, such as U.S.
+Added: Gold and Silver Prices
+Added: Gold and silver prices may fluctuate widely due to numerous factors, such as U.S.
dollar strength or weakness, demand, investor sentiment, inflation or deflation, and global mine production.
−Removed: The Company’s profitability and cash flow may be significantly impacted by changes in the market price of gold, silver, zinc and lead.
+Added: The Company’s profitability and cash flow may be significantly impacted by changes in the market price of gold and silver.
+Added: Decreases in the market price of gold and silver can also significantly affect the value of our metal inventory, stockpiles and leach pads, and it may be necessary to record a write-down to the net realizable value, as well as significantly impact our carrying value of long-lived assets.
+Added: Net realizable value represents the estimated future sales price based on short-term and long-term metals prices, less estimated costs to complete production and bring the product to sale.
+Added: The primary factors that influence the need to record write-downs of our stockpiles, leach pads and product inventory include short-term and long-term metals prices and costs for production inputs such as labor, fuel and energy, materials and supplies as well as realized ore grades and recovery rates.
+Added: The significant assumptions in determining the stockpile, leach pad and metal inventory adjustments at December 31, 2022 included production cost and capitalized expenditure assumptions unique to each operation, a short-term and long-term gold price of $1,726 and $1,715 per ounce, respectively, and a short-term and long-term silver price of $21.17 and $21.36 per ounce, respectively.
+Added: The net realizable value measurement involves the use of estimates and assumptions unique to each mining operation regarding current and future operating and capital costs, metal recoveries, production levels, commodity prices, proven and probable reserve quantities, engineering data and other factors.
+Added: A high degree of judgment is involved in determining such assumptions and estimates and no assurance can be given that actual results will not differ significantly from those estimates and assumptions.
To mitigate the risks associated with metal price fluctuations, the Company may enter into option contracts to hedge future production.
−Removed: 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 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.
−Removed: The weighted average strike prices on the put and call contracts are $1,630 and $2,038 per ounce of gold, respectively.
−Removed: The contracts are generally net cash settled and, if the price of gold at the time of the expiration is between the put and call prices, would expire at no cost to the Company.
−Removed: These Asian put and call option contracts expose us to (i) credit risk in the form of non-performance by counterparties for contracts in which the contract price exceeds the spot price of a commodity, (ii) price risk to the extent that the spot price exceeds the contract price for quantities of our production covered under contract positions;
−Removed: and (iii) liquidity risk to the extent counterparties exercise rights to cash collateral for out-of-money hedges under applicable instruments.
+Added: The Company had outstanding forward contracts on 130,500 ounces of gold at December 31, 2022 that settle monthly through December 2023.
+Added: The Company is targeting to hedge up to 70% of expected gold production and 50% of expected silver production for 2023 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.
+Added: In early 2023, the Company added 49,998 ounces of gold forward contracts and 3.2 million ounces of silver forward contracts that settle monthly through December 2023.
+Added: Taking into account the additional gold and silver hedges added in early 2023, the weighted average fixed price on the forward contracts is $1,961 per ounce of gold and $24.55 per ounce of silver.
+Added: The contracts are generally net cash settled and, if the spot price of gold at the time of expiration is lower than the fixed price or higher than the fixed prices, it would result in a realized gain or loss, respectively.
+Added: The forward contracts expose us to (i) credit risk in the form of non-performance by counterparties for contracts in which the contract price is below the spot price of a commodity, and (ii) price risk to the extent that the spot price exceeds the contract price for quantities of our production covered under contract positions.
To reduce counter-party credit exposure, the Company enters into contracts with institutions management deems credit-worthy and limits credit exposure to each institution.
1 unchanged sentence
For additional information, please see the section titled “Risk Factors” in the 2022 10-K and part II, Item 1A of this report.
−Removed: At December 31, 2021, the fair value of the put and call zero cost collars contracts was a liability of $1.2 million.
−Removed: 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, 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 .
−Removed: As of December 31, 2021, the closing price of gold was $1,806 per ounce.
+Added: At December 31, 2022, the fair value of the gold forward contracts was an asset of $12.3 million.
+Added: For the year ended December 31, 2022, the Company recognized a gain of $28.5 million related to expired contracts in Revenue and the remaining outstanding forwards contracts were included in accumulated other comprehensive income (loss) .
+Added: A 10% increase and decrease in the price of gold at December 31, 2022 would result in a net realized loss and gain of $4.8 million and $44.3 million, respectively.
+Added: The December 31, 2022 closing price of gold was $1,814 per ounce.
As of February 22, 2023, the closing price of gold was $1,836 per ounce.
6 unchanged sentences
At December 31, 2022, the Company had outstanding provisionally priced sales of 14,556 ounces of gold at an average price of $1,786.
−Removed: Changes in gold prices resulted in provisional pricing mark-to-market loss of $0.5 million during the year ended December 31, 2021.
+Added: Changes in gold prices resulted in provisional pricing mark-to-market gain of $0.37 million during the twelve months ended December 31, 2022.
A 10% change in realized gold prices would cause revenue to vary by $2.6 million.
11 unchanged sentences
Interest Rate Hedging
−Removed: We may use financial instruments to manage exposures to changes in interest rates on loans, which exposes us to credit risk and market risk.
+Added: The Company may use financial instruments to manage exposures to changes in interest rates on loans, which exposes it to credit risk and market risk.
Credit risk is the failure of the counterparty to perform under the terms of the derivative contract.
−Removed: When the fair value of a derivative contract is positive, the counterparty owes us, which creates credit risk for us.
−Removed: When the fair value of a derivative contract is negative, we owe the counterparty and, therefore, it does not pose credit risk.
−Removed: We seek to minimize the credit risk in derivative instruments by entering into transactions with what we believe are high-quality counterparties.
+Added: When the fair value of a derivative contract is positive, the counterparty owes the Company, which creates credit risk for the Company.
+Added: When the fair value of a derivative contract is negative, the Company owes the counterparty and, therefore, it does not pose credit risk.
+Added: The Company seeks to minimize the credit risk in derivative instruments by entering into transactions
+Added: with what it believes are high-quality counterparties.
Market risk is the adverse effect on the value of a financial instrument that results from a change in interest rates.
2 unchanged sentences
Equity Price Risk
−Removed: We are exposed to changes in the fair value of our investments in equity securities.
+Added: The Company is exposed to changes in the fair value of our investments in equity securities.
For the year ended December 31, 2022, the Company recognized unrealized losses of $47.9 million in Fair value adjustments, net due to decreases in the stock price of those equity securities.
2 unchanged sentences
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.