Segment Information

12 Months Ended

Dec. 31, 2015

Segment Information

Segment Information

23.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:

	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 )
The Year ended December 31, 2015
Velardeña Properties	$	8,071	$	10,065	$	3,826	$	1,347	$	17,346	$	8,988	$	28
Corporate, Exploration & Other	—		—		654		8,918		8,037		8,013		16
	$	8,071	$	10,065	$	4,480	$	10,265	$	25,383	$	17,001	$	44
The Year ended December 31, 2014
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

All of the revenue for the two years presented was from the Company’s Velardeña Properties in Mexico (see Note 17).  The revenue for 2015 was attributable to sales of precipitates and concentrates to three customers under varying agreements. The revenue for 2014 was attributable to sale of concentrates to one customer. During 2014 the Velardeña Properties were on care and maintenance until processing of mined material resumed in early November 2014, resulting in lower revenue and costs applicable to sales. The Company suspended operations at its Velardeña properties in November 2015 (see Note 1).

The 2015 Velardeña Properties pre-tax loss includes a $13.2 million impairment charge recorded at September 30, 2015 (see Note 3). The impairment charge is also reflected in the reduction of the Velardeña Properties total assets for 2015.