Segment Information

12 Months Ended

Dec. 31, 2013

Segment Information

Segment Information

21. Segment Information

The Company’s sole activity is the mining, construction and exploration of mineral properties containing precious metals.  The Company’s reportable segments are based upon the Company’s revenue producing activities and cash consuming activities. The Company reports two segments, one for its Velardeña Properties in Mexico and the other comprised of non-revenue producing activities including exploration, construction and general and administrative activities.  Intercompany revenue and expense amounts have been eliminated within each segment in order to report on the basis that management uses internally for evaluating segment performance. The financial information relating to the Company’s segments is as follows:

							Exploration, El
							Quevar,
			Costs		Depreciation,		Velardeña and
			Applicable		Depletion and		Administrative						Capital
The Year ended December 31, 2013	Revenue		to Sales		Amortization		Expense		Pre-Tax loss		Total Assets		Expenditures
							(in thousands)
Velardeña Properties	$	10,680	$	17,534	$	5,978	$	9,426	$	278,195	$	28,861	$	1,767
Corporate, Exploration & Other	—		—		949		12,813		11,871		26,020		30
	$	10,680	$	17,534	$	6,927	$	22,239	$	290,066	$	54,881	$	1,797

The Year ended December 31, 2012
Velardeña Properties	$	26,086	$	33,369	$	8,635	$	7,912	$	81,600	$	298,002	$	9,531
Corporate, Exploration & Other	—		—		1,377		19,187		18,439		50,100		89
	$	26,086	$	33,369	$	10,012	$	27,099	$	100,039	$	348,102	$	9,620

The Velardeña Properties segment pre-tax loss for the year ended December 31, 2013 includes charges of $255.7 million related to the impairment of long lived assets and goodwill as discussed in Notes 2 and 3. The decline in the Velardeña Properties segment total assets from December 31, 2012 to December 31, 2013 is also related to the impairment of the long lived assets and goodwill.  The Velardeña Properties segment pre-tax loss for the year ended December 31, 2012 includes a charge of $58.5 million related to the impairment of goodwill as discussed in Note 3. Goodwill was all related to the ECU merger and is therefore all related to the Velardeña Properties segment.

All of the revenue for the two years presented was from the Company’s Velardeña Properties in Mexico (see Note 16).  The revenue for both years was attributable to sales of precipitates and concentrates to five customers under varying agreements. The 2012 revenue also includes the sale of doré to one of the customers.