97
CONSOLIDATED FINANCIAL STATEMENTS
DRIVING GROWTH FROM WITHIN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013
(All amounts in US$‘000’s unless otherwise stated)
Quoted Prices in Significant and
Significant
Active Markets for other Observable
Unobservable
Identical Assets
Inputs
Inputs
Aggregate Fair
At December 31, 2013
Level 1
Level 2
Level 3
Value Total
Cash and cash equivalents
$
31,704 $
–
$
– $
31,704
Short term investments
17,411
–
–
17,411
Trade receivable from concentrate sales
1
–
9,797
–
9,797
$ 49,115 $ 9,797 $
– $
58,912
ii.
Fair Value of Financial Assets and Liabilities
December 31, 2014
December 31, 2013
Carrying
Estimated
Carrying
Estimated
Amount
Fair Value
Amount
Fair Value
Financial assets
Cash and cash equivalents
1
$ 42,867 $ 42,867 $ 31,704 $ 31,704
Short term investments
1
34,391
34,391
17,411
17,411
Trade receivable from concentrate sales
2
16,573
16,573
9,797
9,797
Advances and other receivables
2,906
2,906
3,883
3,883
$ 96,737 $ 96,737 $ 62,795 $ 62,795
Financial liabilities
Trade and other payables
1
$ 20,072 $ 20,072 $ 15,272 $ 15,272
Due to related parties
1
9
9
20
20
Other liabilities
3
38
38
254
258
Income tax payable
1
9,745
9,745
50
50
$ 29,864 $ 29,864 $ 15,596 $ 15,600
1
Fair value approximates the carrying amount due to the short term nature and historically negible credit losses.
2
Trade receivable from concentrate sales includes provisional pricing, and final price and assay adjustments. The fair value of trade
receivable from concentrate sales resulting from provisional pricing reflect observable market commodity prices and thereby classified
within Level 2 of the fair value hierarchy.
3
Other liabilities are recorded at amortized costs. The fair value of other liabilities are primarily determined using quoted market prices.
Balance includes current portion of other liabilities.
b) Currency Risk
The Company is exposed to the financial risk related to the fluctuation of foreign exchange rates. The Company operates
in Canada, Peru and Mexico and a portion of its expenses are incurred in Canadian dollars, nuevo soles, and Mexican
pesos. A significant change in the currency exchange rates between the United States dollar relative to the other
currencies could have a material effect on the Company’s income, financial position, or cash flows. The Company has
not hedged its exposure to currency fluctuations.
16. Management of Financial Risk (Continued)
a.) Fair Value of Financial Instruments (Continued)
i. Assets and Liabilities Measured At Fair Value on a Recurring Basis (Continued)
