Property, Plant and Equipment, Net

9 Months Ended

Sep. 30, 2014

Property, Plant and Equipment, Net

Property, Plant and Equipment, Net

7.Property, Plant and Equipment, Net

The components of property, plant and equipment are as follows:

	September 30,			December 31,
	2014			2013
	(in thousands)
Mineral properties	$	22,397		$	22,397
Exploration properties	2,743			2,993
Royalty properties	200			200
Buildings	2,357			2,349
Mining equipment and machinery	19,683			19,441
Other furniture and equipment	841			1,054
Asset retirement cost	2,002			2,087
	50,223			50,521
Less: Accumulated depreciation and amortization	(20,217		)	(18,146		)
	30,006			32,375

During the quarter ended September 30, 2014 the Company sold 45 mining concessions totaling 770 hectares located in the Zacatecas District, Zacatecas State, Mexico, to Capstone Mining Group for $700,000 and recorded a $0.5 million gain on the sale.  Also in the quarter, the Company entered into an option agreement with a private party to sell its 1,100 hectare Otuzco property in Peru for $450,000.  At September 30, 2014 the Company had received $150,000 under the option agreement, with the remainder payable in 2015 if the option is maintained and exercised.  In addition, the Company sold miscellaneous surplus equipment located in Argentina during the quarter for $130,000 and recorded a nominal gain. The net gains for the above sales are reflected in other operating income, net on the accompanying Condensed Consolidated Statement of Operations.

The asset retirement cost (“ARC”) is all related to the Company’s Velardeña Properties. The decrease in the ARC during the period is related to an adjustment to the asset retirement obligation (“ARO”) (see Note 9).