Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Jul. 29, 2014 | |
Document And Entity Information | ' | ' |
Entity Registrant Name | 'Solitario Exploration & Royalty Corp. | ' |
Entity Central Index Key | '0000917225 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Jun-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Is Entity a Well-known Seasoned Issuer? | 'No | ' |
Is Entity a Voluntary Filer? | 'No | ' |
Is Entity's Reporting Status Current? | 'Yes | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 39,247,689 |
Document Fiscal Period Focus | 'Q2 | ' |
Document Fiscal Year Focus | '2014 | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $1,226 | $2,092 |
Investments in marketable equity securities, at fair value | 1,076 | 1,577 |
Prepaid expenses and other | 31 | 115 |
Total current assets | 2,333 | 3,784 |
Mineral properties | 13,336 | 12,098 |
Investments in marketable equity securities, at fair value | 2,643 | 2,396 |
Equity method investment | ' | 153 |
Other assets | 938 | 1,069 |
Total assets | 19,250 | 19,500 |
Current liabilities: | ' | ' |
Accounts payable and accrued liabilities | 360 | 367 |
Short-term margin loan | ' | 802 |
Other | ' | 84 |
Total current liabilities | 360 | 1,253 |
Long-term debt, net of discount | 3,252 | 3,144 |
Deferred gain on sale of mineral property | 7,000 | 7,000 |
Warrant liability | 359 | 140 |
Preferred stock, $0.01 par value, authorized 10,000,000 shares (none issued and outstanding at June 30, 2014 and December 31, 2013) | ' | ' |
Common stock, $0.01 par value, authorized 100,000,000 shares (39,247,689 and 37,512,127, respectively, shares issued and outstanding at June 30, 2014 and December 31, 2013) | 393 | 375 |
Additional paid-in capital | 53,845 | 51,963 |
Accumulated deficit | -45,801 | -44,730 |
Accumulated other comprehensive income | 278 | 460 |
Total Solitario shareholders’ equity | 8,715 | 8,068 |
Noncontrolling interest | -436 | -105 |
Total shareholders’ equity | 8,279 | 7,963 |
Total liabilities and shareholders’ equity | $19,250 | $19,500 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Preferred stock | ' | ' |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | ' | ' |
Common stock | ' | ' |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 39,247,689 | 37,512,127 |
Common stock, shares outstanding | 39,247,689 | 37,512,127 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Costs, expenses and other: | ' | ' | ' | ' |
Exploration expense | $136 | $336 | $184 | $698 |
Depreciation and amortization | 5 | 9 | 8 | 16 |
General and administrative | 404 | 517 | 935 | 1,144 |
Gain on derivative instruments | -7 | ' | -39 | -3 |
Property abandonment and impairment | 20 | 3 | 20 | 13 |
Interest and dividend income | -1 | -2 | -1 | -56 |
Gain on sale of assets | ' | -11 | 0 | -11 |
Total costs, expenses and other | 557 | 852 | 1,107 | 1,801 |
Gain on sale of marketable equity securities | 103 | 270 | 403 | 270 |
Gain (loss) on warrant liability | 41 | 758 | -219 | 857 |
Net loss of equity method investment | -28 | -425 | -153 | -738 |
Total other income (expense) | 116 | 603 | 31 | 389 |
Loss before income tax | -441 | -249 | -1,076 | -1,412 |
Income tax expense | -100 | -193 | ' | -24 |
Net loss | -541 | -442 | -1,076 | -1,436 |
Less net loss attributable to noncontrolling interest | 2 | 4 | 5 | 7 |
Net loss attributable to Solitario shareholders | ($539) | ($438) | ($1,071) | ($1,429) |
Loss per common share attributable to Solitario shareholders: | ' | ' | ' | ' |
Basic and diluted | ($0.01) | ($0.01) | ($0.03) | ($0.04) |
Weighted average shares outstanding: | ' | ' | ' | ' |
Basic and diluted | 39,228 | 34,659 | 38,616 | 34,561 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Consolidated Statements Of Comprehensive Income Loss | ' | ' | ' | ' |
Net loss for the period, before other comprehensive loss | ($541) | ($442) | ($1,076) | ($1,436) |
Unrealized loss on marketable equity securities, net of deferred taxes | -368 | -1,669 | -182 | -2,553 |
Comprehensive loss | -909 | -2,111 | -1,258 | -3,989 |
Loss attributable to noncontrolling interests | 2 | 4 | 5 | 7 |
Comprehensive loss attributable to Solitario shareholders | ($907) | ($2,107) | ($1,253) | ($3,982) |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Operating activities: | ' | ' |
Net loss | ($1,076,000) | ($1,436,000) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Unrealized gain on derivative instruments | -39,000 | -3,000 |
Depreciation and amortization | 8,000 | 16,000 |
Loss on equity method investment | 153,000 | 738,000 |
Loss (gain) on warrant liability | 219,000 | -857,000 |
Employee stock option expense | 111,000 | 192,000 |
Deferred income tax expense | ' | 24,000 |
Property abandonment and impairment | 20,000 | 13,000 |
Gain on asset and equity security sales | -403,000 | -281,000 |
Changes in operating assets and liabilities: | ' | ' |
Prepaid expenses and other current assets | 85,000 | 25,000 |
Accounts payable and other current liabilities | -42,000 | -108,000 |
Net cash used in operating activities | -964,000 | -1,677,000 |
Investing activities: | ' | ' |
Additions to mineral properties | -999,000 | -914,000 |
Sale of derivative instruments | 36,000 | ' |
Proceeds from mineral property sale receivable | ' | 4,000,000 |
Proceeds from sale of marketable equity securities | 473,000 | 313,000 |
Other assets, net | 10,000 | 12,000 |
Net cash (used in) provided by investing activities | -480,000 | 3,411,000 |
Financing activities: | ' | ' |
Proceeds from issuance of common stock | 1,630,000 | ' |
Short-term borrowing (net) | -802,000 | -382,000 |
Repayment of long-term debt | ' | -750,000 |
Contribution from noncontrolling interest | ' | 250,000 |
Proceeds from exercise of options | ' | 183,000 |
Proceeds from long-term debt | ' | 2,000,000 |
Distribution to noncontrolling interest | ' | -50,000 |
Payment to noncontrolling interest | -250,000 | -250,000 |
Net cash provided by financing activities | 578,000 | 1,001,000 |
Net (decrease) increase in cash and cash equivalents | -866,000 | 2,735,000 |
Cash and cash equivalents, beginning of period | 2,092,000 | 616,000 |
Cash and cash equivalents, end of period | 1,226,000 | 3,351,000 |
Cash paid for interest, capitalized to mineral property | 96,000 | 86,000 |
Supplemental disclosure of non-cash activities: | ' | ' |
Capitalized non-cash interest | 206,000 | 287,000 |
Issuance of stock to noncontrolling interest | 76,000 | 77,000 |
Issuance of stock for mineral property | 38 | 41 |
Issuance of stock to settle severance liability | $45,000 | ' |
Business_and_Significant_Accou
Business and Significant Accounting Policies | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Accounting Policies [Abstract] | ' | ||||
Business and Significant Accounting Policies | ' | ||||
1. Business and Significant Accounting Policies | |||||
Business | |||||
Solitario Exploration & Royalty Corp. (“Solitario”) is a development stage company (but not a company in the “Development Stage”) under Industry Guide 7, as issued by the United States Securities and Exchange Commission, with a focus on developing the Mt. Hamilton project located in Nevada. Although Solitario intends to develop the Mt. Hamilton project, Solitario has never developed a mineral property. In addition to the Mt. Hamilton project, Solitario owns the Bongará zinc project in Brazil, which is subject to a joint venture with Votorantim Matais Cajamarquilla, S.A. (“Votorantim”), whereby Votorantim is earning a 70% interest in the Bongará zinc project, subject to certain conditions. In addition, Solitario acquires and holds a portfolio of precious and base metal exploration properties for future sale, joint venture or to create a royalty prior to the establishment of proven and probable reserves and at June 30, 2014 has four mineral exploration properties in Peru and Mexico and its Yanacocha and Mercurio royalty properties in Peru and Brazil, respectively. Solitario is conducting limited exploration activities in these countries. | |||||
The accompanying interim condensed consolidated financial statements of Solitario for the three and six months ended June 30, 2014 and 2013 are unaudited and are prepared in accordance with accounting principles generally accepted in the United States of America. They do not include all disclosures required by generally accepted accounting principles for annual financial statements, but in the opinion of management, include all adjustments, consisting only of normal recurring items, necessary for a fair presentation. Interim results are not necessarily indicative of results, which may be achieved in the future or for the full year ending December 31, 2014. | |||||
These financial statements should be read in conjunction with the financial statements and notes thereto which are included in Solitario’s Annual Report on Form 10-K for the year ended December 31, 2013. The accounting policies set forth in those annual financial statements are the same as the accounting policies utilized in the preparation of these financial statements, except as modified for appropriate interim financial statement presentation. | |||||
Investment in Kinross | |||||
Solitario has a significant investment in Kinross Gold Corporation (“Kinross”) at June 30, 2014 and December 31, 2013, which consists of the following: | |||||
(in thousands) | 30-Jun-14 | December 31, | |||
2013 | |||||
Shares | 500 | 600 | |||
Fair value | |||||
Current assets | $1,076 | $1,577 | |||
Long term assets | $ 994 | $1,051 | |||
During the three and six months ended June 30, 2014 and 2013, Solitario sold the following shares of Kinross: | |||||
(in thousands) | Three months ended | Six months ended | |||
30-Jun | 30-Jun | ||||
2014 | 2013 | 2014 | 2013 | ||
Shares sold | 30 | 60 | 100 | 60 | |
Proceeds | $123 | $313 | $473 | $313 | |
Gain on sale | $103 | $270 | $403 | $270 | |
At December 31, 2013, Solitario had borrowed $802,000 in short-term margin loans against its holdings of Kinross shares, which was paid during the six months ended June 30, 2014. The short-term margin loans are discussed below under, “Short-term debt.” Subsequent to June 30, 2014 Solitario sold 20,000 shares of Kinross for proceeds of $82,000 and as of July 29, 2014 we own 480,000 shares of Kinross common stock which have a value of approximately $1.99 million based upon the market price of $4.14 per Kinross share. Solitario’s investment in Kinross common stock represents a significant concentration of assets, with the inherent risk that entails. Any significant decline in the market value of Kinross common shares could have a material negative impact on our liquidity and capital resources. | |||||
Equity method investments | |||||
Solitario accounts for its investment in Pedra Branca do Mineracao, Ltd. (“PBM”) under the equity method as of July 21, 2010, when Anglo Platinum Limited (“Anglo”) earned a 51% interest in PBM. Solitario elected not to record its investment in PBM at fair value after July 21, 2010 and during the three and six months ended June 30, 2014 recorded a loss of $28,000 and $153,000, respectively, in its equity method investment for Solitario’s share of the loss of PBM. During the six months ended June 30, 2014, Solitario’s equity investment in PBM was reduced to zero and Solitario is no longer recognizing its share of losses in PBM in the statement of operations. Solitario’s unrecognized losses related to its 49% interest in PBM were $181,000 as of June 30, 2014. | |||||
Employee stock compensation plans | |||||
Solitario’s outstanding options on the date of grant have a five year term, and vest 25% on date of grant and 25% on each of the next three anniversary dates. Solitario recognizes stock option compensation expense on the date of grant for 25% of the grant date fair value, and subsequently, based upon a straight line amortization of the unvested grant date fair value of each of its outstanding options. During the three and six months ended June 30, 2014, Solitario recorded $56,000 and $112,000, respectively, of stock option expense for the amortization of grant date fair value with a credit to additional paid-in-capital. During the three and six months ended June 30, 2013, Solitario recorded $68,000 and $192,000, respectively, of stock option expense for the amortization of grant date fair value with a credit to additional paid-in-capital. | |||||
The 2006 Plan | |||||
On June 27, 2006 Solitario’s shareholders approved the 2006 Stock Option Incentive Plan (the “2006 Plan”). Under the terms of the 2006 Plan, the Board of Directors may grant up to 2,800,000 options to Directors, officers and employees with exercise prices equal to the market price of Solitario’s common stock at the date of grant. | |||||
On January 28, 2014, holders of option awards from the 2006 Plan voluntarily cancelled awards for 1,797,000 options with an option price of Cdn$2.40 with an expiration date of May 5, 2015 to allow Solitario to have additional financial flexibility. No consideration was given or received by the holders of the options to cancel the awards. On May 19, 2014, previously granted options for 264,000 shares expired unexercised and are available for grant. | |||||
There were no new options granted during the three and six months ended June 30, 2014 under the 2006 plan. No options were exercised during the three and six months ended June 30, 2014. During the three and six months ended June 30, 2013 options for 112,500 shares were exercised at a price of Cdn$1.55 per share for proceeds of $176,000 and 5,000 options were exercised at a price of Cdn$1.49 per share for proceeds of $7,000. | |||||
The 2013 Plan | |||||
On June 18, 2013 Solitario’s shareholders approved the 2013 Solitario Exploration & Royalty Corp. Omnibus Stock and Incentive Plan (the “2013 Plan”). Under the terms of the 2013 Plan, the Board of Directors may grant awards for up to 1,750,000 shares to Directors, officers, employees and consultants. Such awards may take the form of stock options, stock appreciation rights, restricted stock, and restricted stock units. The terms and conditions of the awards are pursuant to the 2013 Plan and are granted by the Board of Directors or a committee appointed by the Board of Directors. Solitario classifies its awards from the 2013 Plan as equity awards under the provisions of ASC 718 “Compensation – Stock Compensation.” | |||||
During the six months ended June 30, 2014, Solitario granted restricted stock units from the 2013 Plan for a total of 50,562 shares, which were vested upon grant to two employees as part of their severance pay upon the employees’ termination from the Company. During the three and six months ended June 30, 2013, Solitario granted options for 120,000 shares with an exercise price of $1.14 per share, the closing price of a share of Solitario common stock as quoted on the NYSE-MKT on the date of grant. The option has a term of five years, vested 25% on the date of grant and 25% on each subsequent anniversary date and a grant date fair value of $78,000 based upon a Black Scholes model with a 68% expected volatility, an expected life of five years and a risk free interest rate of 1.24% | |||||
Earnings per share | |||||
The calculation of basic and diluted earnings and loss per share is based on the weighted average number of common shares outstanding during the three and six months ended June 30, 2014 and 2013. During the three and six months ended June 30, 2014 and 2013, Solitario excluded 1,758,000 and 2,600,900, respectively, potentially dilutive shares related to outstanding common stock options from the calculation because the effects were anti-dilutive. In addition, during the three and six months ended June 30, 2014 and 2013, Solitario excluded an additional 1,624,748 shares related to warrants from the calculation because the effects were anti-dilutive. | |||||
Marketable equity securities | |||||
Solitario's investments in marketable equity securities are classified as available-for-sale and are carried at fair value, which is based upon quoted prices of the securities owned. The cost of marketable equity securities sold is determined by the specific identification method. Changes in market value are recorded in accumulated other comprehensive income within shareholders' equity, unless a decline in market value is considered other than temporary, in which case the decline is recognized as a loss in the consolidated statement of operations. | |||||
The following tables summarize Solitario’s marketable equity securities and accumulated other comprehensive income related to its marketable equity securities: | |||||
(in thousands) | June 30, 2014 | December 31, 2013 | |||
Marketable equity securities at fair value | $3,720 | $3,973 | |||
Cost | 1,884 | 1,954 | |||
Accumulated other comprehensive income for | 1,836 | 2,019 | |||
unrealized holding gains | |||||
Deferred taxes on accumulated other comprehensive | -639 | -688 | |||
income for unrealized holding gains | |||||
Valuation allowance on deferred taxes on unrealized holding losses | -919 | -871 | |||
included in other comprehensive loss | |||||
Accumulated other comprehensive income | $278 | $460 | |||
The following table represents changes in marketable equity securities. | |||||
(in thousands) | Three months ended | Six months ended | |||
March 31, | 30-Jun | ||||
2014 | 2013 | 2014 | 2013 | ||
Gross cash proceeds | $ 123 | $ 313 | $ 473 | $ 313 | |
Cost | 20 | 43 | 70 | 43 | |
Gross gain on sale included in earnings during the period | 103 | 270 | 403 | 270 | |
Deferred taxes on gross gain on sale included in earnings | -35 | -101 | -140 | -101 | |
Valuation allowance on deferred taxes on gross gain on sale | 35 | - | 140 | - | |
included in earnings | |||||
Reclassification adjustment to unrealized gain in other | -103 | -169 | -403 | -169 | |
comprehensive income for net gains included in earnings | |||||
Gross unrealized holding (loss) gain arising during the period | -365 | -1,848 | 221 | -3,258 | |
included in other comprehensive loss | |||||
Deferred taxes on unrealized holding gain (loss) included in | 128 | 348 | (76) | 874 | |
other comprehensive loss | |||||
Valuation allowance on deferred taxes on unrealized holding | -28 | - | 76 | - | |
losses included in other comprehensive loss | |||||
Net unrealized holding (loss) gain | -265 | -1,500 | 221 | -2,384 | |
Other comprehensive (loss) income from marketable equity | ($368) | ($1,669) | ($182) | ($2,553) | |
securities |
Mineral_Properties
Mineral Properties | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Notes to Financial Statements | ' | ||||
Mineral Property | ' | ||||
2. Mineral Property | |||||
The following table details Solitario’s investment in Mineral Property: | |||||
(in thousands) | June 30, | December 31, | |||
2014 | 2013 | ||||
Development (United States) | |||||
Mt. Hamilton | $13,317 | $12,059 | |||
Exploration | |||||
Pachuca (Mexico) | - | 20 | |||
Norcan (Mexico) | 6 | 6 | |||
Aconchi (Mexico) | 5 | 5 | |||
Canta Colorado (Mexico) | 3 | 3 | |||
La Promesa (Peru) | 5 | 5 | |||
Total exploration | 19 | 39 | |||
Total mineral property | $13,336 | $12,098 | |||
Mt. Hamilton | |||||
On February 22, 2012, Solitario announced the completion of a feasibility study related to its Mt. Hamilton project (the “Feasibility Study”) prepared by SRK Consulting (US), Inc. of Lakewood, Colorado (“SRK”). As a result of the completion of the Feasibility Study, Solitario earned an 80% interest in MH-LLC, owner of the Mt. Hamilton project, and intends to develop the Mt. Hamilton project, subject to a number of factors including obtaining necessary permits and availability of required capital, none of which is currently in place. | |||||
Capitalized costs | |||||
Solitario began capitalizing its development costs incurred at its Mt. Hamilton project subsequent to the completion of the Feasibility Study, as detailed in the following table: | |||||
(in thousands) | Three months ended | Six months ended | |||
June 30, | June 30, | ||||
2014 | 2013 | 2014 | 2013 | ||
Development expenditures | $ 355 | $ 441 | $ 840 | $ 768 | |
Capitalized interest | 149 | 193 | 302 | 373 | |
Property payments | 100 | 100 | 100 | 100 | |
Capitalized depreciation | 8 | 8 | 16 | 16 | |
Total capitalized costs | $ 612 | $ 742 | $ 1,258 | $ 1,257 | |
All exploration costs on our other exploration properties, none of which have proven and probable reserves, including any additional costs incurred for subsequent lease payments or exploration activities related to our projects are expensed as incurred. | |||||
Discontinued projects | |||||
Solitario recorded $20,000 of mineral property write-downs during the three and six months ended June 30, 2014 related to its Pachuca silver property in Mexico. During the three and six months ended June 30, 2013, Solitario recorded $3,000 and $13,000 of mineral property write-downs related to its Cerro Azul project in Peru and its Atico and Jaripo projects in Mexico. | |||||
Exploration expense | |||||
The following items comprised exploration expense: | |||||
(in thousands) | Three months ended | Six months ended | |||
June 30 | June 30, | ||||
2014 | 2013 | 2014 | 2013 | ||
Geologic and field expenses | $112 | $247 | $138 | $493 | |
Administrative | 24 | 89 | 46 | 205 | |
Total exploration costs | $136 | $ 336 | $184 | $ 698 |
Other_Assets
Other Assets | 6 Months Ended | ||
Jun. 30, 2014 | |||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | ||
Other Assets | ' | ||
3. Other Assets | |||
The following items comprised other assets: | |||
(in thousands) | June 30, | December 31, | |
2014 | 2013 | ||
Deferred offering costs RMB Loan | $224 | $322 | |
Accumulated Mt. Hamilton advance royalty payments | 600 | 600 | |
Furniture and Fixtures, net of accumulated depreciation | 72 | 95 | |
Exploration bonds and other assets | 42 | 52 | |
Total other assets | $ 938 | $ 1,069 | |
In connection with the RMB Loan, Solitario recorded deferred offering costs that are being amortized on a straight-line basis to interest cost over 36 months, the term of the Facility Agreement. See Note 5, “Long-term debt,” below. | |||
Short_Term_Debt
Short Term Debt | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Debt Disclosure [Abstract] | ' | ||||
Short Term Debt | ' | ||||
4. Short-term Debt | |||||
During the six months ended June 30, 2014 Solitario had a secured credit line agreement with UBS Bank, USA (“UBS”), which was secured by all of Solitario’s assets held in its UBS brokerage account, consisting primarily of Kinross shares. The UBS secured line of credit carried an interest rate which floated based upon a base rate of 2.25% plus the one-month London Interbank Offered Rate (“LIBOR”) which averaged 0.16% during the period the UBS secured line of credit was outstanding during the six months ended June 30, 2014. Solitario paid its entire balance owing on the UBS secured line of credit during the six months ended June 30, 2014 and the secured line of credit was terminated. | |||||
The following tables summarize Solitario’s short-term debt: | |||||
(in thousands) | |||||
UBS short-term credit line | |||||
Beginning balance December 31, 2013 | $ 802 | ||||
Borrowing, including interest | 104 | ||||
Repayments | (906) | ||||
Ending balance June 30, 2014 | $ - | ||||
(in thousands) | Three months ended | Six months ended | |||
June 30, | June 30, | ||||
2014 | 2013 | 2014 | 2013 | ||
Interest UBS short-term credit line | $ - | $ 8 | $ 4 | $ 16 | |
During the three and six months ended June 30, 2014 and 2013, Solitario capitalized all of its interest to mineral property. See Note 2, “Mineral property,” above. |
Long_Term_Debt
Long Term Debt | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Debt Disclosure [Abstract] | ' | ||||
Long Term Debt | ' | ||||
5. Long-term Debt | |||||
Augusta long-term debt | |||||
In connection with the formation of Mt. Hamilton LLC (“MH-LLC”), the Mt. Hamilton properties contributed by a subsidiary of Ely Gold & Minerals Inc. (“Ely”), DHI Minerals (US), Ltd. (“DHI”) to MH-LLC were subject to a security interest granted to Augusta Resource Corporation (“Augusta”) related to Ely’s acquisition of the Mt. Hamilton properties. Pursuant to the Limited Liability Company Operating Agreement of Mt. Hamilton LLC (the “MH Agreement”), as part of its earn-in, Solitario agreed to make private placement investments totaling $2,500,000 in Ely common stock, all to provide Ely with the funds necessary for Ely to make the loan payments due to Augusta at the time of the formation of MH-LLC. The payments due to Augusta were non-interest bearing. Accordingly, upon formation and the contribution of the mineral properties by DHI to MH-LLC, MH-LLC recorded the discounted fair value of the payments due to Augusta, discounted at 7.5%, which was Solitario’s estimated cost of similar credit as of the formation of MH-LLC. On November 22, 2013 Solitario fully paid off the Augusta long-term debt. See “Recent Developments, Augusta long-term debt” in Note 1 to the consolidated financial statements included in Solitario’s Annual Report on Form 10-K for the year ended December 31, 2013. During the three and six months ended June 30, 2013, Solitario recorded $38,000 and $81,000 for accretion of interest costs related to the Augusta long-term debt, which was capitalized to mineral property. See Note 2, Mineral Properties, above. | |||||
RMB Facility Agreement | |||||
On August 10, 2012, Solitario entered into a Facility Agreement (the “Facility Agreement”) with RMB Australia Holdings Limited, an Australian corporation (“RMBAH”), and RMB Resources Inc., a Delaware corporation (“RMBR”) whereby Solitario may borrow up to $5,000,000 from RMBAH (with any amounts outstanding collectively being the “RMB Loan”) at any time during the 24 month period commencing on August 21, 2012, (the “Availability Period”), after which time any undrawn portion of the $5,000,000 commitment will be cancelled and will no longer be available for drawdown. In connection with the Facility Agreement, Solitario recorded a warrant discount related to the RMB warrants issued at the time Solitario entered into the Facility Agreement. The warrant discount is being amortized on a straight-line basis to interest cost over 36 months, the term of the Facility Agreement. The RMB Loan amounts bear interest at the 90-day LIBOR rate plus 5%, payable in arrears on the last day of each quarterly interest period. The RMB Loan interest rate was 5.23% at June 30, 2014. The RMB Loan may be repaid at any time without penalty. Any amounts repaid may not be redrawn under the Facility Agreement. The RMB Loan is secured by a lien on Solitario’s 80% interest in MH-LLC as well as a general security interest in Solitario’s remaining assets. | |||||
The following table summarizes the RMB Loan: | |||||
RMB | RMB | RMB | |||
(in thousands) | Loan borrowing | Warrant discount | Long-term | ||
Debt | |||||
Beginning balance December 31, 2013 | $ 3,500 | ($356) | $3,144 | ||
Borrowing | - | - | |||
Amortization of discount to interest cost | - | 108 | 108 | ||
Ending balance June 30, 2014 | $3,500 | ($248) | 3,252 | ||
Solitario recorded the following interest cost related to the RMB Loan: | |||||
(in thousands) | Three months ended | Six months ended | |||
June 30, | June 30, | ||||
2014 | 2013 | 2014 | 2013 | ||
Interest paid in cash | $ 46 | $ 43 | $ 96 | $ 70 | |
Amortization of the RMB Warrants discount | 54 | 54 | 108 | 108 | |
Amortization of RMB deferred financing costs | 49 | 49 | 98 | 98 | |
Total interest expense related to the RMB Loan | $149 | $146 | $302 | $276 | |
During the three and six months ended June 30, 2014 and 2013, Solitario capitalized all of its interest to mineral property. See Note 2, “Mineral property,” above. |
Derivative_Instruments
Derivative Instruments | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||
Derivative Instruments | ' | ||||
6. Derivative instruments | |||||
RMB Warrants | |||||
In August 2012, pursuant to the Facility Agreement, the Company issued 1,624,748 warrants to RMBAH (the “RMB Warrants”) as partial consideration for financing services provided in connection with the Facility Agreement. Each RMB Warrant entitles the holder to purchase one share of Solitario common stock pursuant to the terms and conditions of the RMB Warrants. The RMB Warrants expire 36 months from their date of issuance and have an exercise price of $1.5387 per share, subject to customary anti-dilution adjustments. Solitario recorded a warrant discount, which it is amortizing on a straight-line basis. See Note 5, long-term debt, above. | |||||
Solitario has recorded a liability as of June 30, 2014 and December 31, 2013 of $359,000 and $140,000, respectively, for the fair value of the RMB Warrants based upon a Black-Scholes model. Solitario adjusts the fair value of the warrants at each balance sheet date, with changes in value recorded in other income (loss) in the statement of operations. | |||||
Solitario recorded the following gain (loss) in the statement of operations related to the RMB Warrants: | |||||
Three months ended | Six months ended | ||||
June 30, | June 30, | ||||
2014 | 2013 | 2014 | 2013 | ||
Gain (loss) in thousands | $ 41 | $ 758 | ($219) | $ 857 | |
Life (in months) | 14 | 26 | 14 | 26 | |
Volatility | 53% | 62% | 53% | 62% | |
Stock price (per share) | $1.32 | $0.90 | $1.32 | $0.90 | |
Risk free interest rate | 0.36% | 0.36% | 0.36% | 0.36% | |
Covered Call Options | |||||
From time to time Solitario has sold covered call options against its holdings of Kinross. The business purpose of selling covered calls is to provide additional income on a limited portion of shares of Kinross that Solitario may sell in the near term, which is generally defined as less than one year. During the six months ended June 30, 2014, Solitario sold covered calls covering 130,000 shares for proceeds of $36,000. At June 30, 2014 these covered calls had expired unexercised and Solitario recorded a gain of $7,000 and $36,000, respectively, on these covered calls during the three and six months ended June 30, 2014. At December 31, 2013 Solitario had sold options covering 200,000 shares of Kinross, recorded as a $3,000 current liability, which expired unexercised in February 2014. Solitario recorded a gain of $3,000 on these covered call options during the six months ended June 30, 2014. Solitario has not designated its covered calls as hedging instruments and records gains or loss on the covered call in the period of the change. |
Fair_Value
Fair Value | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Fair Value Disclosures [Abstract] | ' | ||||
Fair Value | ' | ||||
7. Fair value | |||||
For certain of Solitario’s financial instruments, including cash and cash equivalents, payables and short-term debt, the carrying amounts approximate fair value due to their short term maturities. Solitario’s marketable equity securities are carried at their estimated fair value primarily based on quoted market prices. The long-term debt associated with MH-LLC was carried at its estimated fair value based upon the discounted present value of the payments using an estimated discount rate and the RMB Warrants are carried at their estimated fair value based on a Black-Scholes option pricing model. | |||||
Solitario accounts for its financial instruments under ASC 820, "Fair Value Measurements." ASC 820 establishes a framework for measuring fair value and requires enhanced disclosures about fair value measurements. ASC 820 clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. ASC 820 also requires disclosure about how fair value is determined for assets and liabilities and establishes a hierarchy for which these assets and liabilities must be grouped, based on significant levels of inputs as follows: | |||||
· | Level 1: quoted prices in active markets for identical assets or liabilities; | ||||
· | Level 2: quoted prices in active markets for similar assets and liabilities and inputs that are observable for the asset or liability; or | ||||
· | Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. | ||||
The determination of where assets and liabilities fall within this hierarchy is based upon the lowest level of input that is significant to the fair value measurement. During the three and six months ended June 30, 2014 and 2013 there were no reclassifications in financial assets or liabilities between Level 1, 2 or 3 categories. | |||||
The following is a listing of Solitario’s financial assets and liabilities required to be measured at fair value on a recurring basis and where they are classified within the hierarchy as of June 30, 2014: | |||||
(in thousands) | Level 1 | Level 2 | Level 3 | Total | |
Assets | |||||
Marketable equity securities | $3,719 | $ - | $- | $3,719 | |
Liabilities | |||||
RMB warrants | - | 359 | - | 359 | |
The following is a listing of Solitario’s financial assets and liabilities required to be measured at fair value on a recurring basis and where they are classified within the hierarchy as of December 31, 2013: | |||||
(in thousands) | Level 1 | Level 2 | Level 3 | Total | |
Assets | |||||
Marketable equity securities | $3,973 | $ - | $- | $3,973 | |
Liabilities | |||||
RMB warrants | - | 140 | - | 140 | |
Kinross calls | 3 | 3 | |||
Income_Taxes
Income Taxes | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Income Tax Disclosure [Abstract] | ' | ||||
Income Taxes | ' | ||||
8. Income Taxes | |||||
Solitario accounts for income taxes in accordance with ASC 740, “Accounting for Income Taxes.” Under ASC 740, income taxes are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently due plus deferred taxes related to certain income and expenses recognized in different periods for financial and income tax reporting purposes. Deferred tax assets and liabilities represent the future tax return consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. Deferred taxes are also recognized for operating losses and tax credits that are available to offset future taxable income and income taxes, respectively. A valuation allowance is provided if it is more likely than not that some portion or all of the deferred tax assets will not be realized. | |||||
At June 30, 2014 and December 31, 2013, primarily as a result of the its net operating loss carry-forwards exceeding the built-in-gain in the value of Solitario's holdings of Kinross common stock recognized as other comprehensive income, Solitario has recorded a valuation allowance equal to the built-in gain on the value of its holdings of Kinross common stock. | |||||
The following table summarizes the changes in income taxes during the three and six months ended June 30, 2014 and 2013: | |||||
(in thousands) | Three months ended | Six months ended | |||
June 30, | June 30, | ||||
2014 | 2013 | 2014 | 2013 | ||
Income tax expense | $100 | $ 193 | $ - | $ 24 | |
Deferred tax (expense) benefit on unrealized losses on | ($100) | $ 449 | $ - | $ 975 | |
marketable equity securities in other comprehensive | |||||
income | |||||
During the three months ended June 30, 2014, Solitario recorded $100,000 of deferred tax expense in the statement of operations to record a valuation allowance on the current year loss, as Solitario no longer expects to have gains in other comprehensive income for the year to realize this benefit against. In addition a deferred tax benefit of $100,000 was recorded in other comprehensive income, as Solitario no longer expects to have gains in other comprehensive income and is recording a valuation allowance on the unrealized losses occurring during the year. |
Shareholders_Equity_Comprehens
Shareholders' Equity, Comprehensive Loss and Noncontrolling Interest | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Notes to Financial Statements | ' | ||||||||
Shareholders' Equity, Comprehensive Loss and Noncontrolling Interest | ' | ||||||||
9. Shareholders’ Equity, comprehensive loss and noncontrolling interest | |||||||||
(in thousands, except | Accumulated | Total | |||||||
Share amounts) | Common | Common | Additional | Other | Solitario | Non- | Total | ||
Stock | Stock | Paid-in | Accumulated | Comprehensive | Shareholder | Controlling | Shareholders’ | ||
Shares | Amount | Capital | Deficit | Income | Equity | Interest | Equity | ||
Balance at December 31, 2013 | 37,512,127 | $375 | $51,963 | ($44,730) | $460 | $8,068 | ($105) | $7,963 | |
Issuance of shares from restricted stock grant | 50,562 | - | 45 | - | - | 45 | - | 45 | |
Issuance of shares to noncontrolling | 50,000 | 1 | 75 | - | - | 76 | -76 | - | |
shareholder for future earn-in | |||||||||
Issuance of cash to noncontrolling shareholder for future earn-in | - | - | - | - | - | - | -250 | -250 | |
Issuance of shares in private | 1,600,000 | 16 | 1,614 | - | - | 1,630 | - | 1,630 | |
placement for cash | |||||||||
Stock option expense | - | - | 56 | - | - | 56 | - | 56 | |
Net loss | - | - | - | -532 | - | -532 | -3 | -535 | |
Net unrealized gain on marketable | - | - | - | - | 186 | 186 | - | 186 | |
equity securities | |||||||||
Balance at March 31, 2014 | 39,212,689 | $392 | $53,753 | ($45,262) | $646 | $9,529 | ($434) | $9,095 | |
Issuance of shares for mineral property | 35,000 | 1 | 37 | - | - | 38 | - | 38 | |
Stock option expense | - | - | 55 | - | - | 55 | - | 55 | |
Net loss | - | - | - | -539 | - | -539 | -2 | -541 | |
Net unrealized gain on marketable | - | - | - | - | -368 | -368 | - | -368 | |
equity securities | |||||||||
Balance at June 30, 2014 | 39,247,689 | $393 | $53,845 | ($45,801) | $278 | $8,715 | ($436) | $8,279 | |
On February 28, 2014 Solitario closed a private placement of 1,600,000 shares of Solitario common stock priced at $1.05 per share for gross proceeds of $1,680,000 (the “2014 Offering”). Solitario retained a placement agent in connection with the portion of the Offering conducted in Canada and paid the placement agent a fee of $50,000 for the sale effected to the single Canadian investor that participated in the 2014 Offering. | |||||||||
During the six months ended June 30, 2014, Solitario paid DHI Minerals (US), Ltd. (“DHI”) $250,000 in cash and delivered 50,000 shares of Solitario common stock to DHI, in accordance with the terms of the letter of intent between Solitario, DHI and Ely. See Note 2, “Mineral Properties, Mt. Hamilton” to the consolidated financial statements included in Solitario’s Annual Report on Form 10-K for the year ended December 31, 2013. | |||||||||
During the three months ended June 30, 2014, Solitario delivered 35,000 shares of Solitario common stock, valued at $38,000, and $62,000 of cash to an underlying leaseholder at Mt. Hamilton in accordance with the terms of the lease. |
Segment_Reporting
Segment Reporting | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Segment Reporting | ' | ||||||||
10. Segment Reporting | |||||||||
Solitario operates in two segments, (i) mineral exploration and (ii) mining development and operations. Solitario is capitalizing Mt. Hamilton development and operations costs subsequent to February 22, 2012, as detailed above in Note 2, “Mineral properties.” The following summarizes Solitario segment activity for the three and six months ended June 30, 2014 and 2013: | |||||||||
(in thousands) | Three months ended June 30, | ||||||||
Mt Hamilton | Exploration | Corporate and Other | Consolidated | ||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||
Exploration expense | $ - | $ - | $136 | $336 | $ - | $ - | $136 | $336 | |
Interest expense (2) | - | - | - | - | - | - | - | - | |
Other loss (income) (1)(3) | 7 | 50 | 438 | 255 | -532 | 305 | -87 | ||
Pre-tax loss (income) | $ - | $ 7 | $186 | $774 | $255 | ($532) | $441 | $249 | |
-1 | Includes loss on unconsolidated subsidiary. | ||||||||
-2 | Interest cost and depreciation have been capitalized to Mt. Hamilton mineral properties. See Note 2, “Mineral Property”. | ||||||||
-3 | Corporate and other include gain (loss) on warrant liability and gain on sale of marketable equity securities. | ||||||||
(in thousands) | Six months ended June 30, | ||||||||
Mt Hamilton | Exploration | Corporate and Other | Consolidated | ||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||
Exploration expense | $ - | $ - | $184 | $ 698 | $ - | $ - | $184 | $698 | |
Interest expense (2) | - | - | - | - | - | - | - | - | |
Other loss (income) (1)(3) | - | 14 | 185 | 789 | 707 | -89 | 892 | 714 | |
Pre-tax loss | $ - | $ 14 | $369 | $1,487 | $707 | ($89) | $1,076 | $1,412 | |
Total assets (4)(5) | $15,121 | $13,904 | $316 | $1,019 | $3,813 | $4,563 | $19,250 | $19,486 | |
Capital Expenditures (2) | $ 1,258 | $ 1,257 | $ - | $ - | $ - | $ - | $ 1,258 | $ 1,257 | |
-1 | Includes loss on unconsolidated subsidiary. | ||||||||
-2 | Interest cost and depreciation have been capitalized to Mt. Hamilton. See Note 2, “Mineral properties.” | ||||||||
-3 | Corporate and other include gain on warrant liability and gain on sale of marketable equity securities. | ||||||||
-4 | Exploration total assets include investment in unconsolidated subsidiary. | ||||||||
-5 | Corporate and other total assets include investment in marketable equity securities. |
Business_and_Significant_Accou1
Business and Significant Accounting Policies (Policies) | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Accounting Policies [Abstract] | ' | ||||
1. Business and Significant Accounting Policies | ' | ||||
1. Business and Significant Accounting Policies | |||||
Business | |||||
Solitario Exploration & Royalty Corp. (“Solitario”) is a development stage company (but not a company in the “Development Stage”) under Industry Guide 7, as issued by the United States Securities and Exchange Commission, with a focus on developing the Mt. Hamilton project located in Nevada. Although Solitario intends to develop the Mt. Hamilton project, Solitario has never developed a mineral property. In addition to the Mt. Hamilton project, Solitario owns the Bongará zinc project in Brazil, which is subject to a joint venture with Votorantim Matais Cajamarquilla, S.A. (“Votorantim”), whereby Votorantim is earning a 70% interest in the Bongará zinc project, subject to certain conditions. In addition, Solitario acquires and holds a portfolio of precious and base metal exploration properties for future sale, joint venture or to create a royalty prior to the establishment of proven and probable reserves and at June 30, 2014 has four mineral exploration properties in Peru and Mexico and its Yanacocha and Mercurio royalty properties in Peru and Brazil, respectively. Solitario is conducting limited exploration activities in these countries. | |||||
The accompanying interim condensed consolidated financial statements of Solitario for the three and six months ended June 30, 2014 and 2013 are unaudited and are prepared in accordance with accounting principles generally accepted in the United States of America. They do not include all disclosures required by generally accepted accounting principles for annual financial statements, but in the opinion of management, include all adjustments, consisting only of normal recurring items, necessary for a fair presentation. Interim results are not necessarily indicative of results, which may be achieved in the future or for the full year ending December 31, 2014. | |||||
These financial statements should be read in conjunction with the financial statements and notes thereto which are included in Solitario’s Annual Report on Form 10-K for the year ended December 31, 2013. The accounting policies set forth in those annual financial statements are the same as the accounting policies utilized in the preparation of these financial statements, except as modified for appropriate interim financial statement presentation. | |||||
Investment in Kinross | |||||
Solitario has a significant investment in Kinross Gold Corporation (“Kinross”) at June 30, 2014 and December 31, 2103, which consists of the following: | |||||
(in thousands) | 30-Jun-14 | December 31, | |||
2013 | |||||
Shares | 500 | 600 | |||
Fair value | |||||
Current assets | $1,076 | $1,577 | |||
Long term assets | $ 994 | $1,051 | |||
During the three and six months ended June 30, 2014 and 2012, Solitario sold the following shares of Kinross: | |||||
(in thousands) | Three months ended | Six months ended | |||
30-Jun | 30-Jun | ||||
2014 | 2013 | 2014 | 2013 | ||
Shares sold | 30 | 60 | 100 | 60 | |
Proceeds | $123 | $313 | $473 | $313 | |
Gain on sale | $103 | $270 | $403 | $270 | |
At December 31, 2013, Solitario had borrowed $802,000 in short-term margin loans against its holdings of Kinross shares, which was paid during the six months ended June 30, 2014. The short-term margin loans are discussed below under, “Short-term debt.” Subsequent to June 30, 2014 Solitario sold 20,000 shares of Kinross for proceeds of $82,000 and as of July 29, 2014 we own 480,000 shares of Kinross common stock which have a value of approximately $1.99 million based upon the market price of $4.14 per Kinross share. Solitario’s investment in Kinross common stock represents a significant concentration of assets, with the inherent risk that entails. Any significant decline in the market value of Kinross common shares could have a material negative impact on our liquidity and capital resources. | |||||
Equity method investments | |||||
Solitario accounts for its investment in Pedra Branca do Mineracao, Ltd. (“PBM”) under the equity method as of July 21, 2010, when Anglo Platinum Limited (“Anglo”) earned a 51% interest in PBM. Solitario elected not to record its investment in PBM at fair value after July 21, 2010 and during the three and six months ended June 30, 2014 recorded a loss of $28,000 and $153,000, respectively, in its equity method investment for Solitario’s share of the loss of PBM. During the six months ended June 30, 2014, Solitario’s equity investment in PBM was reduced to zero and Solitario is no longer recognizing its share of losses in PBM in the statement of operations. Solitario’s unrecognized losses related to its 49% interest in PBM were $181,000 as of June 30, 2014. | |||||
Employee stock compensation plans | |||||
Solitario’s outstanding options on the date of grant have a five year term, and vest 25% on date of grant and 25% on each of the next three anniversary dates. Solitario recognizes stock option compensation expense on the date of grant for 25% of the grant date fair value, and subsequently, based upon a straight line amortization of the unvested grant date fair value of each of its outstanding options. During the three and six months ended June 30, 2014, Solitario recorded $56,000 and $112,000, respectively, of stock option expense for the amortization of grant date fair value with a credit to additional paid-in-capital. During the three and six months ended June 30, 2013, Solitario recorded $68,000 and $192,000, respectively, of stock option expense for the amortization of grant date fair value with a credit to additional paid-in-capital. | |||||
The 2006 Plan | |||||
On June 27, 2006 Solitario’s shareholders approved the 2006 Stock Option Incentive Plan (the “2006 Plan”). Under the terms of the 2006 Plan, the Board of Directors may grant up to 2,800,000 options to Directors, officers and employees with exercise prices equal to the market price of Solitario’s common stock at the date of grant. | |||||
On January 28, 2014, holders of option awards from the 2006 Plan voluntarily cancelled awards for 1,797,000 options with an option price of Cdn$2.40 with an expiration date of May 5, 2015 to allow Solitario to have additional financial flexibility. No consideration was given or received by the holders of the options to cancel the awards. On May 19, 2014, previously granted options for 264,000 shares expired unexercised and are available for grant. | |||||
There were no new options granted during the three and six months ended June 30, 2014 under the 2006 plan. During the three and six months ended June 30, 2013, Solitario granted options for 120,000 shares with an exercise price of $1.14 per share, the closing price of a share of Solitario common stock as quoted on the NYSE-MKT on the date of grant. No options were exercised during the three and six months ended June 30, 2014. During the three and six months ended June 30, 2013 options for 112,500 shares were exercised at a price of Cdn$1.55 per share for proceeds of $176,000 and 5,000 options were exercised at a price of Cdn$1.49 per share for proceeds of $7,000. | |||||
The 2013 Plan | |||||
On June 18, 2013 Solitario’s shareholders approved the 2013 Solitario Exploration & Royalty Corp. Omnibus Stock and Incentive Plan (the “2013 Plan”). Under the terms of the 2013 Plan, the Board of Directors may grant awards for up to 1,750,000 shares to Directors, officers, employees and consultants. Such awards may take the form of stock options, stock appreciation rights, restricted stock, and restricted stock units. The terms and conditions of the awards are pursuant to the 2013 Plan and are granted by the Board of Directors or a committee appointed by the Board of Directors. Solitario classifies its awards from the 2013 Plan as equity awards under the provisions of ASC 718 “Compensation – Stock Compensation.” | |||||
During the six months ended June 30, 2014, Solitario granted restricted stock units from the 2013 Plan for a total of 50,562 shares, which were vested upon grant to two employees as part of their severance pay upon the employees’ termination from the Company. | |||||
Earnings per share | |||||
The calculation of basic and diluted earnings and loss per share is based on the weighted average number of common shares outstanding during the three and six months ended June 30, 2014 and 2013. During the three and six months ended June 30, 2014 and 2013, Solitario excluded 1,758,000 and 2,600,900, respectively, potentially dilutive shares related to outstanding common stock options from the calculation because the effects were anti-dilutive. In addition, during the three months ended June 30, 2014 and 2013, Solitario excluded an additional 1,624,748 shares related to warrants from the calculation because the effects were anti-dilutive. | |||||
Marketable equity securities | |||||
Solitario's investments in marketable equity securities are classified as available-for-sale and are carried at fair value, which is based upon quoted prices of the securities owned. The cost of marketable equity securities sold is determined by the specific identification method. Changes in market value are recorded in accumulated other comprehensive income within shareholders' equity, unless a decline in market value is considered other than temporary, in which case the decline is recognized as a loss in the consolidated statement of operations. | |||||
The following tables summarize Solitario’s marketable equity securities and accumulated other comprehensive income related to its marketable equity securities: | |||||
(in thousands) | June 30, 2014 | December 31, 2013 | |||
Marketable equity securities at fair value | $3,720 | $3,973 | |||
Cost | 1,884 | 1,954 | |||
Accumulated other comprehensive income for | 1,836 | 2,019 | |||
unrealized holding gains | |||||
Deferred taxes on accumulated other comprehensive | -639 | -688 | |||
income for unrealized holding gains | |||||
Valuation allowance on deferred taxes on unrealized holding losses | -919 | -871 | |||
included in other comprehensive loss | |||||
Accumulated other comprehensive income | $278 | $460 | |||
The following table represents changes in marketable equity securities. | |||||
(in thousands) | Three months ended | Six months ended | |||
March 31, | 30-Jun | ||||
2014 | 2013 | 2014 | 2013 | ||
Gross cash proceeds | $ 123 | $ 313 | $ 473 | $ 313 | |
Cost | 20 | 43 | 70 | 43 | |
Gross gain on sale included in earnings during the period | 103 | 270 | 403 | 270 | |
Deferred taxes on gross gain on sale included in earnings | -35 | -101 | -140 | -101 | |
Valuation allowance on deferred taxes on gross gain on sale | 35 | - | 140 | - | |
included in earnings | |||||
Reclassification adjustment to unrealized gain in other | -103 | -169 | -403 | -169 | |
comprehensive income for net gains included in earnings | |||||
Gross unrealized holding gain (loss) arising during the period | -365 | -1,848 | 221 | -3,258 | |
included in other comprehensive loss | |||||
Deferred taxes on unrealized holding (loss) gain included in | 128 | 348 | (76) | 874 | |
other comprehensive loss | |||||
Valuation allowance on deferred taxes on unrealized holding | -28 | - | 76 | - | |
losses included in other comprehensive loss | |||||
Net unrealized holding (loss) gain | -265 | -1,500 | 221 | -2,384 | |
Other comprehensive income (loss) from marketable equity | ($368) | ($1,669) | ($182) | ($2,553) | |
securities |
Business_and_Significant_Accou2
Business and Significant Accounting Policies (Tables) | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Accounting Policies [Abstract] | ' | ||||
Investment in Kinross Gold Corporation | ' | ||||
(in thousands) | 30-Jun-14 | December 31, | |||
2013 | |||||
Shares | 500 | 600 | |||
Fair value | |||||
Current assets | $1,076 | $1,577 | |||
Long term assets | $ 994 | $1,051 | |||
Sales of Kinross Gold Stock | ' | ||||
(in thousands) | Three months ended | Six months ended | |||
30-Jun | 30-Jun | ||||
2014 | 2013 | 2014 | 2013 | ||
Shares sold | 30 | 60 | 100 | 60 | |
Proceeds | $123 | $313 | $473 | $313 | |
Gain on sale | $103 | $270 | $403 | $270 | |
Summary of Marketable Securities and Accumulated OCI | ' | ||||
(in thousands) | June 30, 2014 | December 31, 2013 | |||
Marketable equity securities at fair value | $3,720 | $3,973 | |||
Cost | 1,884 | 1,954 | |||
Accumulated other comprehensive income for | 1,836 | 2,019 | |||
unrealized holding gains | |||||
Deferred taxes on accumulated other comprehensive | -639 | -688 | |||
income for unrealized holding gains | |||||
Valuation allowance on deferred taxes on unrealized holding losses | -919 | -871 | |||
included in other comprehensive loss | |||||
Accumulated other comprehensive income | $278 | $460 | |||
Changes in Marketable Securities | ' | ||||
(in thousands) | Three months ended | Six months ended | |||
March 31, | 30-Jun | ||||
2014 | 2013 | 2014 | 2013 | ||
Gross cash proceeds | $ 123 | $ 313 | $ 473 | $ 313 | |
Cost | 20 | 43 | 70 | 43 | |
Gross gain on sale included in earnings during the period | 103 | 270 | 403 | 270 | |
Deferred taxes on gross gain on sale included in earnings | -35 | -101 | -140 | -101 | |
Valuation allowance on deferred taxes on gross gain on sale | 35 | - | 140 | - | |
included in earnings | |||||
Reclassification adjustment to unrealized gain in other | -103 | -169 | -403 | -169 | |
comprehensive income for net gains included in earnings | |||||
Gross unrealized holding (loss) gain arising during the period | -365 | -1,848 | 221 | -3,258 | |
included in other comprehensive loss | |||||
Deferred taxes on unrealized holding gain (loss) included in | 128 | 348 | (76) | 874 | |
other comprehensive loss | |||||
Valuation allowance on deferred taxes on unrealized holding | -28 | - | 76 | - | |
losses included in other comprehensive loss | |||||
Net unrealized holding (loss) gain | -265 | -1,500 | 221 | -2,384 | |
Other comprehensive (loss) income from marketable equity | ($368) | ($1,669) | ($182) | ($2,553) | |
securities |
Mineral_Properties_Tables
Mineral Properties (Tables) | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Notes to Financial Statements | ' | ||||
Investment in Mineral Properties | ' | ||||
(in thousands) | June 30, | December 31, | |||
2014 | 2013 | ||||
Development (United States) | |||||
Mt. Hamilton | $13,317 | $12,059 | |||
Exploration | |||||
Pachuca (Mexico) | - | 20 | |||
Norcan (Mexico) | 6 | 6 | |||
Aconchi (Mexico) | 5 | 5 | |||
Canta Colorado (Mexico) | 3 | 3 | |||
La Promesa (Peru) | 5 | 5 | |||
Total exploration | 19 | 39 | |||
Total mineral property | $13,336 | $12,098 | |||
Capitalized Development Costs | ' | ||||
(in thousands) | Three months ended | Six months ended | |||
June 30, | June 30, | ||||
2014 | 2013 | 2014 | 2013 | ||
Development expenditures | $ 355 | $ 441 | $ 840 | $ 768 | |
Capitalized interest | 149 | 193 | 302 | 373 | |
Property payments | 100 | 100 | 100 | 100 | |
Capitalized depreciation | 8 | 8 | 16 | 16 | |
Total capitalized costs | $ 612 | $ 742 | $ 1,258 | $ 1,257 | |
Exploration Expense | ' | ||||
(in thousands) | Three months ended | Six months ended | |||
June 30 | June 30, | ||||
2014 | 2013 | 2014 | 2013 | ||
Geologic and field expenses | $112 | $247 | $138 | $493 | |
Administrative | 24 | 89 | 46 | 205 | |
Total exploration costs | $136 | $ 336 | $184 | $ 698 |
Other_Assets_Tables
Other Assets (Tables) | 6 Months Ended | ||
Jun. 30, 2014 | |||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | ||
Other Assets | ' | ||
(in thousands) | June 30, | December 31, | |
2014 | 2013 | ||
Deferred offering costs RMB Loan | $224 | $322 | |
Accumulated Mt. Hamilton advance royalty payments | 600 | 600 | |
Furniture and Fixtures, net of accumulated depreciation | 72 | 95 | |
Exploration bonds and other assets | 42 | 52 | |
Total other assets | $ 938 | $ 1,069 |
Short_Term_Debt_Tables
Short Term Debt (Tables) | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Debt Disclosure [Abstract] | ' | ||||
Short Term Debt - Schedule of Short Term Debt | ' | ||||
(in thousands) | |||||
UBS short-term credit line | |||||
Beginning balance December 31, 2013 | $ 802 | ||||
Borrowing, including interest | 104 | ||||
Repayments | (906) | ||||
Ending balance June 30, 2014 | $ - | ||||
Short Term Debt - For Period | ' | ||||
(in thousands) | Three months ended | Six months ended | |||
June 30, | June 30, | ||||
2014 | 2013 | 2014 | 2013 | ||
Interest UBS short-term credit line | $ - | $ 8 | $ 4 | $ 16 |
Long_Term_Debt_Tables
Long Term Debt (Tables) | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Debt Disclosure [Abstract] | ' | ||||
Summary Long Term Debt | ' | ||||
RMB | RMB | RMB | |||
(in thousands) | Loan borrowing | Warrant discount | Long-term | ||
Debt | |||||
Beginning balance December 31, 2013 | $ 3,500 | ($356) | $3,144 | ||
Borrowing | - | - | |||
Amortization of discount to interest cost | - | 108 | 108 | ||
Ending balance June 30, 2014 | $3,500 | ($248) | 3,252 | ||
Long Term Debt - Interest Cost | ' | ||||
(in thousands) | Three months ended | Six months ended | |||
June 30, | June 30, | ||||
2014 | 2013 | 2014 | 2013 | ||
Interest paid in cash | $ 46 | $ 43 | $ 96 | $ 70 | |
Amortization of the RMB Warrants discount | 54 | 54 | 108 | 108 | |
Amortization of RMB deferred financing costs | 49 | 49 | 98 | 98 | |
Total interest expense related to the RMB Loan | $149 | $146 | $302 | $276 |
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||
Gain Loss RMB Warrants | ' | ||||
Three months ended | Six months ended | ||||
June 30, | June 30, | ||||
2014 | 2013 | 2014 | 2013 | ||
Gain (loss) in thousands | $ 41 | $ 758 | ($219) | $ 857 | |
Life (in months) | 14 | 26 | 14 | 26 | |
Volatility | 53% | 62% | 53% | 62% | |
Stock price (per share) | $1.32 | $0.90 | $1.32 | $0.90 | |
Risk free interest rate | 0.36% | 0.36% | 0.36% | 0.36% |
Fair_Value_Tables
Fair Value (Tables) | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Fair Value Disclosures [Abstract] | ' | ||||
Assets and Liabilities Measured at Fair Value On A Recurring Basis June 30 2014 | ' | ||||
(in thousands) | Level 1 | Level 2 | Level 3 | Total | |
Assets | |||||
Marketable equity securities | $3,719 | $ - | $- | $3,719 | |
Liabilities | |||||
RMB warrants | - | 359 | - | 359 | |
Assets and Liabilities Measured at Fair Value On A Recurring Basis December 31, 2013 | ' | ||||
(in thousands) | Level 1 | Level 2 | Level 3 | Total | |
Assets | |||||
Marketable equity securities | $3,973 | $ - | $- | $3,973 | |
Liabilities | |||||
RMB warrants | - | 140 | - | 140 | |
Kinross calls | 3 | 3 |
Income_Taxes_Tables
Income Taxes (Tables) | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Income Tax Disclosure [Abstract] | ' | ||||
Income Taxes Changes in Income Taxes | ' | ||||
(in thousands) | Three months ended | Six months ended | |||
June 30, | June 30, | ||||
2014 | 2013 | 2014 | 2013 | ||
Income tax expense | $100 | $ 193 | $ - | $ 24 | |
Deferred tax (expense) benefit on unrealized losses on | ($100) | $ 449 | $ - | $ 975 | |
marketable equity securities in other comprehensive | |||||
income |
Shareholders_Equity_Comprehens1
Shareholders' Equity, Comprehensive Loss and Noncontrolling Interest (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Notes to Financial Statements | ' | ||||||||
Shareholders' Equity | ' | ||||||||
(in thousands, except | Accumulated | Total | |||||||
Share amounts) | Common | Common | Additional | Other | Solitario | Non- | Total | ||
Stock | Stock | Paid-in | Accumulated | Comprehensive | Shareholder | Controlling | Shareholders’ | ||
Shares | Amount | Capital | Deficit | Income | Equity | Interest | Equity | ||
Balance at December 31, 2013 | 37,512,127 | $375 | $51,963 | ($44,730) | $460 | $8,068 | ($105) | $7,963 | |
Issuance of shares from restricted stock grant | 50,562 | - | 45 | - | - | 45 | - | 45 | |
Issuance of shares to noncontrolling | 50,000 | 1 | 75 | - | - | 76 | -76 | - | |
shareholder for future earn-in | |||||||||
Issuance of cash to noncontrolling shareholder for future earn-in | - | - | - | - | - | - | -250 | -250 | |
Issuance of shares in private | 1,600,000 | 16 | 1,614 | - | - | 1,630 | - | 1,630 | |
placement for cash | |||||||||
Stock option expense | - | - | 56 | - | - | 56 | - | 56 | |
Net loss | - | - | - | -532 | - | -532 | -3 | -535 | |
Net unrealized gain on marketable | - | - | - | - | 186 | 186 | - | 186 | |
equity securities | |||||||||
Balance at March 31, 2014 | 39,212,689 | $392 | $53,753 | ($45,262) | $646 | $9,529 | ($434) | $9,095 | |
Issuance of shares for mineral property | 35,000 | 1 | 37 | - | - | 38 | - | 38 | |
Stock option expense | - | - | 55 | - | - | 55 | - | 55 | |
Net loss | - | - | - | -539 | - | -539 | -2 | -541 | |
Net unrealized gain on marketable | - | - | - | - | -368 | -368 | - | -368 | |
equity securities | |||||||||
Balance at June 30, 2014 | 39,247,689 | $393 | $53,845 | ($45,801) | $278 | $8,715 | ($436) | $8,279 |
Segment_Reporting_Tables
Segment Reporting (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Segment Activity for Three Months | ' | ||||||||
(in thousands) | Three months ended June 30, | ||||||||
Mt Hamilton | Exploration | Corporate and Other | Consolidated | ||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||
Exploration expense | $ - | $ - | $136 | $336 | $ - | $ - | $136 | $336 | |
Interest expense (2) | - | - | - | - | - | - | - | - | |
Other loss (income) (1)(3) | 7 | 50 | 438 | 255 | -532 | 305 | -87 | ||
Pre-tax loss (income) | $ - | $ 7 | $186 | $774 | $255 | ($532) | $441 | $249 | |
-1 | Includes loss on unconsolidated subsidiary. | ||||||||
-2 | Interest cost and depreciation have been capitalized to Mt. Hamilton mineral properties. See Note 2, “Mineral Property”. | ||||||||
-3 | Corporate and other include gain (loss) on warrant liability and gain on sale of marketable equity securities. | ||||||||
Segment Activity Six Months | ' | ||||||||
(in thousands) | Six months ended June 30, | ||||||||
Mt Hamilton | Exploration | Corporate and Other | Consolidated | ||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||
Exploration expense | $ - | $ - | $184 | $ 698 | $ - | $ - | $184 | $698 | |
Interest expense (2) | - | - | - | - | - | - | - | - | |
Other loss (income) (1)(3) | - | 14 | 185 | 789 | 707 | -89 | 892 | 714 | |
Pre-tax loss | $ - | $ 14 | $369 | $1,487 | $707 | ($89) | $1,076 | $1,412 | |
Total assets (4)(5) | $15,121 | $13,904 | $316 | $1,019 | $3,813 | $4,563 | $19,250 | $19,486 | |
Capital Expenditures (2) | $ 1,258 | $ 1,257 | $ - | $ - | $ - | $ - | $ 1,258 | $ 1,257 | |
-1 | Includes loss on unconsolidated subsidiary. | ||||||||
-2 | Interest cost and depreciation have been capitalized to Mt. Hamilton. See Note 2, “Mineral properties.” | ||||||||
-3 | Corporate and other include gain on warrant liability and gain on sale of marketable equity securities. | ||||||||
-4 | Exploration total assets include investment in unconsolidated subsidiary. | ||||||||
-5 | Corporate and other total assets include investment in marketable equity securities. |
Business_and_Significant_Accou3
Business and Significant Accounting Policies - Business Investment in Kinross Gold Corporation (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Accounting Policies [Abstract] | ' | ' |
Shares | 500,000 | 600,000 |
Fair value | ' | ' |
Current assets | $1,076,000 | $1,577,000 |
Long term assets | $994,000 | $1,051,000 |
Business_and_Significant_Accou4
Business and Significant Accounting Policies - Business Sales of Kinross Gold Stock (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Accounting Policies [Abstract] | ' | ' | ' | ' |
Shares sold | 30,000 | 60,000 | 100,000 | 60,000 |
Proceeds | $123,000 | $313,000 | $473,000 | $313,000 |
Gain on sale | $103,000 | $270,000 | $403,000 | $270,000 |
Business_and_Significant_Accou5
Business and Significant Accounting Policies - Business Summary of Marketable Securities and Accumulated OCI (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Accounting Policies [Abstract] | ' | ' |
Marketable equity securities at fair value | $3,720,000 | $3,973,000 |
Cost | 1,884,000 | 1,954,000 |
Accumulated other comprehensive income for unrealized holding gains | 1,836,000 | 2,019,000 |
Deferred taxes on accumulated other comprehensive income for unrealized holding gains | -639,000 | -688,000 |
Valuation allowance on deferred taxes on unrealized holding losses included in other comprehensive loss | -919,000 | -871,000 |
Accumulated other comprehensive income | $278,000 | $460,000 |
Business_and_Significant_Accou6
Business and Significant Accounting Policies - Business Changes in Marketable Securities (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Accounting Policies [Abstract] | ' | ' | ' | ' |
Gross cash proceeds | $123,000 | $313,000 | $473,000 | $313,000 |
Cost | 20,000 | 43,000 | 70,000 | 43,000 |
Gross gain on sale included in earnings during the period | 103,000 | 270,000 | 403,000 | 270,000 |
Deferred taxes on gross gain on sale included in earnings | -35,000 | -101,000 | -140,000 | -101,000 |
Valuation allowance on deferred taxes on gross gain on sale included in earnings | 35,000 | ' | 140,000 | ' |
Reclassification adjustment to unrealized gain in other comprehensive income for net gains included in earnings | -103,000 | -169,000 | -403,000 | -169,000 |
Gross unrealized holding (loss) gain arising during the period included in other comprehensive loss | -365,000 | -1,848,000 | 221,000 | -3,258,000 |
Deferred taxes on unrealized holding gain (loss) included in other comprehensive loss | 128,000 | 348,000 | -76,000 | 874,000 |
Valuation allowance on deferred taxes on unrealized holding losses included in other comprehensive loss | -28,000 | ' | 76,000 | ' |
Net unrealized holding (loss) gain | -265,000 | -1,500,000 | 221,000 | -2,384,000 |
Other comprehensive (loss) income from marketable equity securities | ($368,000) | ($1,669,000) | ($182,000) | ($2,553,000) |
Business_and_Significant_Accou7
Business and Significant Accounting Policies (Details Narrative) (USD $) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||||||
Jul. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jul. 29, 2014 | 19-May-14 | Jan. 28, 2014 | Dec. 31, 2013 | Jun. 18, 2013 | Jul. 21, 2010 | Jun. 27, 2006 | |
Accounting Policies [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount borrowed in short-term margin loans against holding of Kinross shares | ' | ' | ' | ' | ' | ' | ' | ' | $802,000 | ' | ' | ' |
Proceeds from sale of 20,000 Kinross shares sold | ' | 82,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares of Kinross owned | ' | ' | ' | ' | ' | 480,000 | ' | ' | ' | ' | ' | ' |
Value of Kinross shares owned at a market price of $4.14 per share | ' | ' | ' | ' | ' | 1,990,000 | ' | ' | ' | ' | ' | ' |
Anglo Platinum interest earned | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.51 | ' |
Loss in unconsolidated subsidiary | ' | 28,000 | ' | 153,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Equity investment in unconsolidated subsidiary | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized losses related to 49% interest in unconsolidated subsidiary | ' | 181,000 | ' | 181,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Stock option expense for the amortization of grant date fair value | ' | 56,000 | 68,000 | 112,000 | 192,000 | ' | ' | ' | ' | ' | ' | ' |
Options available under 2006 Stock Option Incentive Plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,800,000 |
Awards at Cdn$2.40 voluntarily cancelled under 2006 Plan | ' | ' | ' | ' | ' | ' | ' | 1,797,000 | ' | ' | ' | ' |
Options expired | ' | ' | ' | ' | ' | ' | 264,000 | ' | ' | ' | ' | ' |
Proceeds from options exercised of 112,500 shares at Cdn$1.55 | 176,000 | ' | 176,000 | ' | 176,000 | ' | ' | ' | ' | ' | ' | ' |
Proceeds from options exercised of 5,000 shares at Cdn$1.49 | ' | ' | $7,000 | ' | $7,000 | ' | ' | ' | ' | ' | ' | ' |
Options available for award under 2013 Solitario Exploration and Royalty Corp. Omnibus Stock and Incentive Plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,750,000 | ' | ' |
Options granted from 2013 plan as part of severance pay | ' | ' | ' | 50,562 | ' | ' | ' | ' | ' | ' | ' | ' |
Options granted at an exercise price of $1.14 per share | ' | ' | 120,000 | ' | 120,000 | ' | ' | ' | ' | ' | ' | ' |
Potentially dilutive shares related to options excluded from earnings per share | ' | 1,758,000 | 2,600,900 | 1,758,000 | 2,600,900 | ' | ' | ' | ' | ' | ' | ' |
Shares related to warrants excluded from earnings per share | ' | 1,624,748 | 1,624,748 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Mineral_Properties_Mineral_Pro
Mineral Properties - Mineral Properties Investment in Mineral Properties (Details) (USD $) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2014 | Dec. 31, 2013 | |
Development (United States) | ' | ' |
Mt. Hamilton | $13,317,000 | $12,059,000 |
Exploration | ' | ' |
Pachuca (Mexico) | ' | 20,000 |
Norcan (Mexico) | 6,000 | 6,000 |
Aconchi (Mexico) | 5,000 | 5,000 |
Canta Colorado (Mexico) | 3,000 | 3,000 |
La Promesa (Peru) | 5,000 | 5,000 |
Total exploration | 19,000 | 39,000 |
Total mineral property | $13,336,000 | $12,098,000 |
Mineral_Properties_Mineral_Pro1
Mineral Properties - Mineral Properties Capitalized Development Costs (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Notes to Financial Statements | ' | ' | ' | ' |
Development expenditures | $355,000 | $441,000 | $840,000 | $768,000 |
Capitalized interest | 149,000 | 193,000 | 302,000 | 373,000 |
Property payments | 100,000 | 100,000 | 100,000 | 100,000 |
Capitalized depreciation | 8,000 | 8,000 | 16,000 | 16,000 |
Total capitalized costs | $612,000 | $742,000 | $1,258,000 | $1,257,000 |
Mineral_Properties_Mineral_Pro2
Mineral Properties - Mineral Properties Exploration Expense (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Notes to Financial Statements | ' | ' | ' | ' |
Geologic and field expenses | $112,000 | $247,000 | $138,000 | $493,000 |
Administrative | 24,000 | 89,000 | 46,000 | 205,000 |
Total exploration costs | $136,000 | $336,000 | $184,000 | $698,000 |
Mineral_Properties_Details_Nar
Mineral Properties (Details Narrative) (USD $) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Feb. 22, 2012 | |
Notes to Financial Statements | ' | ' | ' | ' | ' |
Solitario interest earned in MHLLC | ' | ' | ' | ' | 0.8 |
Mineral property write-downs recorded | $20,000 | $3,000 | $20,000 | $13,000 | ' |
Other_Assets_Other_Assets_Deta
Other Assets - Other Assets (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | ' |
Deferred offering costs RMB Loan | $224,000 | $322,000 |
Accumulated Mt. Hamilton advance royalty payments | 600,000 | 600,000 |
Furniture and Fixtures, net of accumulated depreciation | 72,000 | 95,000 |
Exploration bonds and other assets | 42,000 | 52,000 |
Total other assets | $938,000 | $1,069,000 |
Short_Term_Debt_Schedule_of_Sh
Short Term Debt - Schedule of Short Term Debt (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
UBS short-term credit line | ' | ' |
Beginning balance | $802,000 | $1,500,000 |
Borrowing | 104,000 | 2,300,000 |
Repayments | -906,000 | -2,998,000 |
Ending balance | ' | ' |
Short_Term_Debt_Short_Term_Deb
Short Term Debt - Short Term Debt - For Period (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Debt Disclosure [Abstract] | ' | ' | ' | ' |
Interest UBS short-term credit line | ' | $8,000 | $4,000 | $16,000 |
Long_Term_Debt_RMB_Loan_Summar
Long Term Debt RMB Loan Summary (Details) (USD $) | 6 Months Ended |
Jun. 30, 2014 | |
RMB Loan Borrowing | ' |
Beginning balance | $3,500,000 |
Borrowing | ' |
Amortization of discount to interest cost | ' |
Ending balance | 3,500,000 |
RMB Warrant Discount | ' |
Beginning balance | -356,000 |
Borrowing | ' |
Amortization of discount to interest cost | 108,000 |
Ending balance | -248,000 |
RMB Long Term Debt | ' |
Beginning balance | 3,144,000 |
Borrowing | ' |
Amortization of discount to interest cost | 108,000 |
Ending balance | $3,252,000 |
Long_Term_Debt_Long_Term_Debt_
Long Term Debt - Long Term Debt - Interest Cost (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Debt Disclosure [Abstract] | ' | ' | ' | ' |
Interest paid in cash | $46,000 | $43,000 | $96,000 | $70,000 |
Amortization of the RMB Warrants discount | 54,000 | 54,000 | 108,000 | 108,000 |
Amortization of RMB deferred financing costs | 49,000 | 49,000 | 98,000 | 98,000 |
Total interest expense related to the RMB Loan | $149,000 | $146,000 | $302,000 | $276,000 |
Long_Term_Debt_Details_Narrati
Long Term Debt (Details Narrative) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | Aug. 10, 2012 | |
Debt Disclosure [Abstract] | ' | ' | ' | ' |
Private place investment in Ely common stock | ' | ' | ' | $2,500,000 |
Accretion of interest costs related to Augusta long term debt | 38,000 | 81,000 | ' | ' |
Amount available to borrow pursuant to Facility Agreement | ' | ' | ' | $5,000,000 |
RMB loan interest rate | ' | ' | 0.0523 | ' |
Derivative_Instruments_Derivat
Derivative Instruments -Derivative Instruments Gain Loss RMB Warrants (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ' | ' | ' |
Gain (loss) in thousands | $41,000 | $758,000 | ($219,000) | $857,000 |
Life (in months) | 14 | 26 | 14 | 26 |
Volatility | 0.53 | 0.62 | 0.53 | 0.62 |
Stock price (per share) | 1.32 | 0.9 | 1.32 | 0.9 |
Risk free interest rate | 0.0036 | 0.0036 | 0.0036 | 0.0036 |
Derivative_Instruments_Details
Derivative Instruments (Details Narrative) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Aug. 10, 2012 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ' | ' | ' |
Warrants issued as partial consideration for financing services at exercise price of $1.5387 per share | ' | ' | ' | 1,624,748 |
Liability for fair value RMB warrants | $359,000 | $359,000 | $140,000 | ' |
Proceeds from sale of covered calls of 130,000 shares | ' | 36,000 | ' | ' |
Gain recorded from expired covered calls | 7,000 | 36,000 | ' | ' |
Liability on sale of options of 200,000 shares of Kinross | ' | ' | 3,000 | ' |
Gain on options of 200,000 shares of Kinross | ' | $3,000 | ' | ' |
Fair_Value_Assets_and_Liabilit
Fair Value Assets and Liabilities Measured at Fair Value On A Recurring Basis June 30 2014 (Details) (USD $) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2014 | Dec. 31, 2013 | |
Assets | ' | ' |
Marketable equity securities Level 1 | $3,719,000 | $3,973,000 |
Marketable equity securities Level 2 | ' | ' |
Marketable equity securities Level 3 | ' | ' |
Marketable equity securities Total | 3,719,000 | 3,973,000 |
Liabilities | ' | ' |
RMB warrants Level 1 | ' | ' |
RMB warrants Level 2 | 359,000 | 140,000 |
RMB warrants Level 3 | ' | ' |
RMB warrants Total | 359,000 | 140,000 |
Kinross calls Level 1 | ' | 3,000 |
Kinross calls Level 2 | ' | ' |
Kinross calls Level 3 | ' | ' |
Kinross calls Total | ' | $3,000 |
Income_Taxes_Income_Taxes_Chan
Income Taxes - Income Taxes Changes in Income Taxes (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Income tax expense | $100,000 | $193,000 | ' | $24,000 |
Deferred tax (expense) benefit on unrealized losses on marketable equity securities in other comprehensive income | ($100,000) | $449,000 | ' | $975,000 |
Income_Taxes_Details_Narrative
Income Taxes (Details Narrative) (USD $) | 3 Months Ended |
Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Deferred tax expense recorded in statement of operations | $100,000 |
Deferred tax benefit recorded in other comprehensive income | $100,000 |
Shareholders_Equity_Comprehens2
Shareholders' Equity, Comprehensive Loss, and Noncontrolling Interest (Details) (USD $) | Common Stock | Additional Paid-In Capital | Retained Earnings / Accumulated Deficit | Other Comprehensive Income / Loss | Total Solitario Shareholder Equity | Noncontrolling Interest | Total |
Beginning balance, value at Dec. 31, 2013 | $375,000 | $51,963,000 | ($44,730,000) | $460,000 | $8,068,000 | ($105,000) | $7,963,000 |
Beginning balance, shares at Dec. 31, 2013 | 37,512,127 | ' | ' | ' | ' | ' | ' |
Issuance of stock from restricted stock grant, value | ' | 45,000 | ' | ' | 45,000 | ' | 45,000 |
Issuance of stock from restricted stock grant, shares | 50,562 | ' | ' | ' | ' | ' | ' |
Issuance of shares to noncontrolling shareholder for future earn-in, value | 1,000 | 75,000 | ' | ' | 76,000 | -76,000 | ' |
Issuance of shares to noncontrolling shareholder for future earn-in, shares | 50,000 | ' | ' | ' | ' | ' | ' |
Issuance of cash to noncontrolling shareholder for future earn-in | ' | ' | ' | ' | ' | -250 | -250 |
Issuance of shares in private placement for cash, value | 16,000 | 1,614,000 | ' | ' | 1,630,000 | ' | 1,630,000 |
Issuance of shares in private placement for cash, shares | 1,600,000 | ' | ' | ' | ' | ' | ' |
Stock option expense | ' | 56,000 | ' | ' | 56,000 | ' | 56,000 |
Net loss | ' | ' | -532,000 | ' | -532,000 | -3,000 | -535,000 |
Net unrealized gain on marketable equity securities | ' | ' | ' | 186,000 | 186,000 | ' | 186,000 |
Ending balance, value at Mar. 31, 2014 | 392,000 | 53,753,000 | -45,262,000 | 646,000 | 9,529,000 | -434,000 | 9,095,000 |
Ending balance, shares at Mar. 31, 2014 | 39,212,689 | ' | ' | ' | ' | ' | ' |
Issuance of shares for mineral property, value | 1,000 | 37,000 | ' | ' | 38,000 | ' | 38,000 |
Issuance of shares for mineral property, shares | 35,000 | ' | ' | ' | ' | ' | ' |
Stock option expense | ' | 55,000 | ' | ' | 55,000 | ' | 55,000 |
Net loss | ' | ' | 539,000 | ' | -539,000 | -2,000 | -541,000 |
Net unrealized gain on marketable equity securities | ' | ' | ' | -368,000 | -368,000 | ' | -368,000 |
Ending balance, value at Jun. 30, 2014 | $393,000 | $53,845,000 | ($45,801,000) | $278,000 | $8,715,000 | ($436,000) | $8,279,000 |
Ending balance, shares at Jun. 30, 2014 | 39,247,689 | ' | ' | ' | ' | ' | ' |
Shareholders_Equity_Comprehens3
Shareholders' Equity, Comprehensive Loss and Noncontrolling Interest (Details Narrative) (USD $) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2014 | Feb. 28, 2014 | |
Notes to Financial Statements | ' | ' | ' |
Private placement shares | ' | ' | 1,600,000 |
Gross proceeds for private placement of 1,600,000 shares of common stock priced at $1.05 per share | ' | ' | $1,680,000 |
Fee to placement agent | ' | ' | 50,000 |
Cash paid to DHI Minerals in accordance with letter of intent | ' | 250,000 | ' |
Shares issued to DHI Minerals in accordance with letter of intent | ' | 50,000 | ' |
Value of 35,000 shares of common stock issued to an underlying leaseholder in accordance with terms of the lease | 38,000 | ' | ' |
Cash paid to an underlying leaseholder in accordance with terms of the lease | $62,000 | ' | ' |
Segment_Reporting_Segment_Acti
Segment Reporting - Segment Activity (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Exploration expense | ' | ' | ' | ' |
Mt Hamilton | ' | ' | ' | ' |
Exploration | 136,000 | 336,000 | 184,000 | 698,000 |
Corporate and Other | ' | ' | ' | ' |
Consolidated | 136,000 | 336,000 | 184,000 | 698,000 |
Interest expense (2) | ' | ' | ' | ' |
Mt Hamilton | ' | ' | ' | ' |
Exploration | ' | ' | ' | ' |
Corporate and Other | ' | ' | ' | ' |
Consolidated | ' | ' | ' | ' |
Other (1)(3) | ' | ' | ' | ' |
Mt Hamilton | ' | 7,000 | ' | 14,000 |
Exploration | 50,000 | 438,000 | 185,000 | 789,000 |
Corporate and Other | 255,000 | -532,000 | 707,000 | -89,000 |
Consolidated | 305,000 | -87,000 | 892,000 | 714,000 |
Pre-tax loss | ' | ' | ' | ' |
Mt Hamilton | ' | 7,000 | ' | 14,000 |
Exploration | 186,000 | 774,000 | 369,000 | 1,487,000 |
Corporate and Other | 255,000 | -532,000 | 707,000 | -89,000 |
Consolidated | 441,000 | 249,000 | 1,076,000 | 1,412,000 |
Total assets (4)(5) | ' | ' | ' | ' |
Mt Hamilton | ' | ' | 15,121,000 | 13,904,000 |
Exploration | ' | ' | 316,000 | 1,019,000 |
Corporate and Other | ' | ' | 3,813,000 | 4,563,000 |
Consolidated | ' | ' | 19,250,000 | 19,486,000 |
Capital Expenditures (2) | ' | ' | ' | ' |
Mt Hamilton | ' | ' | 1,258,000 | 1,257,000 |
Exploration | ' | ' | ' | ' |
Corporate and Other | ' | ' | ' | ' |
Consolidated | ' | ' | $1,258,000 | $1,257,000 |