Segment Information

12 Months Ended

Dec. 31, 2014

Segment Information

Segment Information

22.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:

The Year ended December 31, 2014	Revenue		Costs Applicable to Sales		Depreciation, Depletion and Amortization		Exploration, El Quevar, Velardeña and Administrative Expense		Pre-Tax loss		Total Assets		Capital Expenditures
	(in thousands)
Velardeña Properties	$	235	$	1,655	$	2,353	$	6,607	$	8,144	$	27,188	$	491
Corporate, Exploration & Other	—		—		775		10,743		10,679		14,070		9
	$	235	$	1,655	$	3,128	$	17,350	$	18,823	$	41,258	$	500

The Year ended December 31, 2013
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

Lesser amounts of revenues, costs applicable to sales, and depreciation were recorded in 2014 as the Velardeña Properties were on care and maintenance much of the year until processing of mined material resumed in early November 2014.  The decline in the Corporate, Exploration and Other segment for total assets from December 31, 2013 to December 31, 2014 is primarily related to a reduction in cash and equivalents.  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 8 and 9.

All of the revenue for the two years presented was from the Company’s Velardeña Properties in Mexico (see Note 16).  The revenue for 2013 was attributable to sales of precipitates and concentrates to five customers under varying agreements. The revenue for 2014 was attributable to sale of concentrates to one customer.