3 unchanged sentences
The Company does not actively engage in the practice of trading derivative instruments for profit.
−Removed: Additional information about the Company’s derivative financial instruments may be found in Note 14 -- Derivative Financial Instruments in the notes to the Consolidated Financial Statements.
+Added: Additional information about the Company’s derivative financial instruments may be found in Note 13 -- Derivative Financial Instruments & Hedging Activities in the notes to the Consolidated Financial Statements.
This discussion of the Company’s market risk assessments contains “forward looking statements”.
12 unchanged sentences
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 forward contracts on 94,950 and 3.1 million ounces of gold and silver, respectively, at December 31, 2023 that settle monthly through June 2024 in order to protect cash flow during the Rochester expansion ramp up, and may in the future layer on additional hedges as circumstances warrant.
−Removed: The weighted average fixed price on the forward contracts is $2,076 per ounce of gold and $25.16 per ounce of silver.
−Removed: 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.
−Removed: 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.
−Removed: To reduce counter-party credit exposure, the Company enters into contracts with institutions management deems credit-worthy and limits credit exposure to each institution.
−Removed: 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.
−Removed: At December 31, 2023, the fair value of the gold forward contracts was a liability of $2.0 million and the fair value of the silver forward contracts was an asset of $3.3 million.
−Removed: For the year ended December 31, 2023, the Company recognized gains of $3.7 million and $7.0 million related to expired gold and silver contracts, respectively, in Revenue and the remaining outstanding gold and silver forward contracts were included in Accumulated other comprehensive income (loss) .
−Removed: A 10% increase and decrease in the price of gold at December 31, 2023 would result in a net realized loss and gain of $14.8 million and $23.7 million, respectively.
−Removed: A 10% increase and decrease in the price of silver at December 31, 2023 would result in a net realized loss and gain of $3.8 million and $11.1 million, respectively.
−Removed: The December 31, 2023 closing price of gold and silver was $2,078 and $23.79 per ounce, respectively.
−Removed: As of February 20, 2024, the closing price of gold and silver was $2,029 and $23.06, per ounce, respectively.
+Added: The Company had forward contracts for gold and silver that settled monthly through June 2024 in order to protect cash flow during the Rochester expansion ramp-up.
+Added: The contracts were net cash settled and, if the spot price of gold at the time of expiration was lower than the fixed price or higher than the fixed prices, it resulted in a realized gain or loss, respectively.
+Added: The forward contracts exposed 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.
+Added: To reduce counter-party credit exposure, the Company entered into contracts with institutions management deems credit-worthy and limits credit exposure to each institution.
+Added: For additional information, please see the section titled “Item 1A - Risk Factors” in this Report.
+Added: For the year ended December 31, 2024, the Company recognized a loss of $12.9 million and $4.3 million related to expired gold and silver contracts, respectively.
+Added: The Company had no outstanding gold or silver hedging contracts at December 31, 2024 but the Company did acquire existing zero cost collar hedges for 1,600 ounces of gold and 200,000 ounces of silver on February 14, 2025 as part of its acquisition of SilverCrest.
+Added: These zero cost collar hedges settle monthly through March, 2025.
Provisional Metal Sales
5 unchanged sentences
At December 31, 2024, the Company had outstanding provisionally priced sales of 14,173 ounces of gold at an average price of $2,642.
−Removed: Changes in gold prices resulted in provisional pricing mark-to-market gain of $30 thousand during the twelve months ended December 31, 2023.
+Added: Changes in gold prices resulted in provisional pricing mark-to-market loss of $0.2 million during
+Added: the twelve months ended December 31, 2024.
A 10% change in realized gold prices would cause revenue to vary by $3.7 million.
15 unchanged sentences
When the fair value of a derivative contract is negative, the Company owes the counterparty and, therefore, it does not pose credit risk.
−Removed: The Company seeks to minimize the credit risk in derivative instruments by entering into transactions
−Removed: with what it believes are high-quality counterparties.
+Added: The Company seeks to minimize the credit risk in derivative instruments by entering into transactions 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: The Company is exposed to changes in the fair value of our investments in equity securities.
The Company had no equity securities at December 31, 2024.
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.