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Corporate administration
Corporate administration costs decreased to $4,946 for year ended December 31, 2014, compared with $6,616 for
the same period in 2013, a decrease of $1,670. The decrease from the prior period was due to a decrease in stock-
based compensation expense as well as the Company’s continual focus on containing costs. The decrease in stock-
based compensation expense of $861 was primarily the result of historically declining share prices, which determine
the strike price of the grant and are a significant driver of the expense to be incurred (as measured on the grant date).
Non-operating income and expenses
Interest income
Interest income decreased to $76 for the year ended December 31, 2014, compared with $232 for the same period in
2013. The decrease in interest income from the prior period is attributable to lesser average cash balances held in
interest bearing accounts during 2014 when compared with the prior year.
Gain/(loss) on currency translation
We report our financial statements in U.S. dollars. Therefore, any foreign currencies owned at the end of the period
are converted to U.S. dollars at the current exchange rate. We hold Canadian dollars in Canadian and U.S. banks as a
result of past financings that were denominated in Canadian dollars. While the majority of our expenses are in U.S.
dollars, we continue to hold Canadian dollars due to higher investment returns and ongoing Canadian dollar
denominated expenses. A strengthening Canadian dollar will result in gains and a weakening Canadian dollar will
result in losses as long as we continue to hold Canadian dollars.
The loss on currency translation was $507 for the year ended December 31, 2014, compared with a loss of $1,531
for the same period in 2013. The Canadian dollar weakened by 8.0% and 7.0% against the U.S. dollar during the
years ended December 31, 2014 and 2013, respectively. The average Canadian cash and cash equivalent balances
during the years ended December 31, 2014 and 2013 were CDN$7.4 million and CDN$21.8 million, respectively.
Year Ended December 31, 2013 Compared to Year Ended December 31, 2012 (unaudited)
Summary
Our consolidated net loss for the year ended December 31, 2013 was $22,246, or $0.48 per share, compared with
our consolidated net loss of $29,362, or $0.66 per share, for the same period in 2012. For the year ended December
31, 2013, the decrease in consolidated net loss was primarily the result of a decrease in corporate administration
costs of $5,298 (of which $4,981 related to stock-based compensation), a decrease in exploration and evaluation
expense of $4,188, a decrease in the write-down of mineral properties of $943 and a positive variance in the
unrealized loss on derivatives of $223. These decreases were partially offset by a negative variance in the loss on
currency translation of $3,056 as well as a decrease in interest income of $395.
Exploration and evaluation
Exploration and evaluation costs were $14,126 for the year ended December 31, 2013, compared with $18,314 for
the same period in 2012. The decrease of $4,188 from the prior period was primarily due to decreased drilling and
evaluation activities as well as decreased environmental monitoring costs. These decreases were partially offset by
increases in metallurgical testing and research and development work.
Corporate administration
Corporate administration costs decreased to $6,616 for year ended December 31, 2013, compared with $11,914 for
the same period in 2012, a decrease of $5,298. The decrease from the prior period was primarily due to a decrease in
stock-based compensation expense of $4,981. The decrease in stock-based compensation was mostly the result of
historically declining share prices, which determine the strike price of the grant and are a significant driver of the
expense to be incurred (as measured on the grant date). The remaining decrease of $317 was the result of more
direct costs assigned to exploration and evaluation expense in 2013 as compared with 2012.
