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Investment in Affiliates (Tables)
 9 Months Ended
Sep. 30, 2024
Equity Method Investments and Joint Ventures [Abstract]  
Investments in and Advances to Affiliates
The table below presents a reconciliation of the investment in affiliates at September 30, 2024:

Balance at December 31, 2023
$321,914 
LGJV net income and comprehensive income (70%)
39,465 
Basis amortization(120)
Impact of the priority distribution payment640 
Equity income in affiliates39,985 
Distributions received from the LGJV
(66,500)
Dividend received from the LGJV(9,945)
Balance at September 30, 2024
$285,454 

The table below presents equity income in affiliates recognized in the three and nine months ended September 30, 2024 and 2023:

Three Months Ended
September 30,
Nine Months Ended
September 30,
202420232024 2023
Equity income in affiliates$18,171 $9,437 $39,985 $15,922 

The table below shows the capital distributions and dividends made to the LGJV partners by the LGJV and the Company's respective share during 2024:

LGJV
Company's Share
Capital distribution on February 15, 2024$30,000 $21,000 
Capital distribution on April 22, 202425,000 17,500 
Capital distribution on July 29, 202440,000 28,000 
Dividend on September 26, 202414,207 9,945 
Total$109,207 $76,445 
Condensed Balance Sheet The LGJV combined balance sheets as of September 30, 2024, and December 31, 2023, the combined statements of operations and comprehensive income for the three and nine months ended September 30, 2024 and 2023, and the statement of cash flows for the nine months ended September 30, 2024 and 2023, are as follows
LOS GATOS JOINT VENTURE
COMBINED BALANCE SHEETS (UNAUDITED)


(in thousands)
September 30,
2024
 
December 31,
2023
ASSETS
Current Assets   
Cash and cash equivalents$33,884 $34,303 
Receivables13,646 12,634 
Inventories16,180 16,397 
VAT receivable13,417 12,610 
Income tax receivable9,296 20,185 
Other current assets3,435 1,253 
Total current assets89,858 97,382 
Non-Current Assets  
Mine development, net231,060 234,980 
Property, plant and equipment, net159,220 171,965 
Deferred tax assets
699 9,568 
Total non-current assets390,979 416,513 
Total Assets$480,837 $513,895 
LIABILITIES AND OWNERS’ CAPITAL  
Current Liabilities  
Accounts payable and accrued liabilities$33,999 $29,100 
VAT payable
11,873 8,684 
   Income taxes payable11,204 920 
Related party payable270 560 
Total current liabilities57,346 39,264 
Non-Current Liabilities  
Lease liability155 208 
Asset retirement obligation12,245 11,593 
Deferred tax liabilities
4,974 3,885 
Total non-current liabilities17,374 15,686 
Owners’ Capital  
Capital contributions360,638 455,638 
Paid-in capital18,186 18,186 
Retained earnings (accumulated deficit)27,293 (14,879)
Total owners’ capital406,117 458,945 
Total Liabilities and Owners’ Capital$480,837 $513,895 
Condensed Income Statement
LOS GATOS JOINT VENTURE
COMBINED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (UNAUDITED)


Three Months Ended,
September 30,
Nine Months Ended,
September 30,
(in thousands)
2024
2023
 
2024
 
2023
Revenue$93,839 $67,038 $260,255 $195,162 
Expenses  
Cost of sales31,204 31,446 93,931 83,255 
Royalties and duties
639 298 1,682 1,024 
Exploration1,605 998 4,577 2,118 
General and administrative3,943 4,355 12,317 12,693 
Depreciation, depletion and amortization17,824 16,712 58,901 59,558 
Total expenses55,215 53,809 171,408 158,648 
Other (income) expense  
Accretion expense217 273 652 866 
Interest expense102 343 851 484 
Interest income
(349)(592)(892)(1,147)
Other (income) expense(13)(18)635 13 
Foreign exchange (gain) loss(920)(946)36 (2,016)
(963)(940)1,282 (1,800)
  
Income before taxes39,587 14,169 87,565 38,314 
Income tax expense (recovery)13,867 (884)31,186 9,814 
Net income and comprehensive income$25,720 $15,053 $56,379 $28,500 
Condensed Cash Flow Statement
LOS GATOS JOINT VENTURE
COMBINED STATEMENTS OF CASH FLOWS (UNAUDITED)

Nine Months Ended
September 30,
(in thousands)
2024 2023
Cash flows from operating activities:   
Net income
$56,379 $28,500 
Adjustments to reconcile net income to net cash provided by operating activities:  
Depreciation, depletion and amortization58,901 59,558 
Accretion652 866 
Deferred taxes10,210 4,743 
Unrealized loss (gain) on foreign currency rate change105 (5,007)
Other— (6)
Changes in operating assets and liabilities:
VAT receivable(1,326)11,215 
Receivables(1,012)16,725 
Inventories(1,379)(1,429)
Other current assets(2,190)403 
Income tax receivable8,495 (633)
Accounts payable and other accrued liabilities21,438 (8,596)
Payables to related parties(290)(730)
Asset Retirement Obligation— (1,820)
Net cash provided by operating activities149,983 103,789 
Cash flows from investing activities:  
Mine development(32,263)(27,151)
Purchase of property, plant and equipment(8,885)(13,506)
Materials and supplies inventory— (503)
Net cash used by investing activities(41,148)(41,160)
Cash flows from financing activities:  
Equipment loan and lease payments
(47)(532)
Capital distributions
(95,000)(50,000)
Dividends paid to partners
(14,207)— 
Net cash used by financing activities(109,254)(50,532)
Net (decrease) increase in cash and cash equivalents
(419)12,097 
Cash and cash equivalents, beginning of period34,303 34,936 
Cash and cash equivalents, end of period$33,884 $47,033 
Interest paid$851 $484 
Interest earned
$892 $1,147