Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Nov. 03, 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-Sep-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 | 'Q3 | ' |
Document Fiscal Year Focus | '2014 | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $1,917 | $2,092 |
Investments in marketable equity securities, at fair value | 3,012 | 1,577 |
Prepaid expenses and other | 47 | 115 |
Total current assets | 4,976 | 3,784 |
Mineral properties | 14,044 | 12,098 |
Investments in marketable equity securities, at fair value | ' | 2,396 |
Equity method investment | ' | 153 |
Other assets | 881 | 1,069 |
Total assets | 19,901 | 19,500 |
Current liabilities: | ' | ' |
Accounts payable and accrued liabilities | 225 | 367 |
Short-term margin loan | ' | 802 |
Current portion long-term debt, net of discount | 4,806 | ' |
Other | ' | 84 |
Total current liabilities | 5,031 | 1,253 |
Long-term debt, net of discount | ' | 3,144 |
Deferred gain on sale of mineral property | 7,000 | 7,000 |
Warrant liability | 282 | 140 |
Preferred stock, $0.01 par value, authorized 10,000,000 shares (none issued and outstanding at September 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 September 30, 2014 and December 31, 2013) | 393 | 375 |
Additional paid-in capital | 54,356 | 51,963 |
Accumulated deficit | -46,306 | -44,730 |
Accumulated other comprehensive (loss) income | -416 | 460 |
Total Solitario shareholders’ equity | 8,027 | 8,068 |
Noncontrolling interest | -439 | -105 |
Total shareholders’ equity | 7,588 | 7,963 |
Total liabilities and shareholders’ equity | $19,901 | $19,500 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 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 | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Property and joint venture revenue | $200 | $200 | $200 | $200 |
Exploration expense | 58 | 76 | 242 | 774 |
Depreciation and amortization | 3 | 5 | 11 | 21 |
General and administrative | 794 | 413 | 1,729 | 1,557 |
Gain on derivative instruments | ' | -64 | -39 | -67 |
Property abandonment and impairment | ' | ' | 20 | 13 |
Interest and dividend income | ' | ' | -1 | -56 |
Gain on sale of assets | -1 | ' | -1 | -11 |
Total costs, expenses and other | 854 | 430 | 1,961 | 2,231 |
Gain on sale of marketable equity securities | 69 | 38 | 472 | 308 |
Gain (loss) on warrant liability | 77 | 96 | -142 | 953 |
Net loss of equity method investment | ' | -158 | -153 | -896 |
Total other income (expense) | 146 | -24 | 177 | 365 |
Loss before income tax | -508 | -254 | -1,584 | -1,666 |
Income tax expense | ' | 47 | ' | 23 |
Net loss | -508 | -207 | -1,584 | -1,643 |
Less net loss attributable to noncontrolling interest | 3 | 5 | 8 | 12 |
Net loss attributable to Solitario shareholders | ($505) | ($202) | ($1,576) | ($1,631) |
Basic and diluted | ($0.01) | ($0.01) | ($0.04) | ($0.05) |
Basic and diluted | 39,248 | 36,463 | 38,873 | 35,244 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Consolidated Statements Of Comprehensive Income Loss | ' | ' | ' | ' |
Net loss for the period, before other comprehensive loss | ($508) | ($207) | ($1,584) | ($1,643) |
Unrealized loss on marketable equity securities, net of deferred taxes | -694 | -272 | -876 | -2,825 |
Comprehensive loss | -1,202 | -479 | -2,460 | -4,468 |
Loss attributable to noncontrolling interests | 3 | 5 | 8 | 12 |
Comprehensive loss attributable to Solitario shareholders | ($1,199) | ($474) | ($2,452) | ($4,456) |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Operating activities: | ' | ' |
Net loss | ($1,584,000) | ($1,643,000) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Unrealized gain on derivative instruments | -39,000 | -67,000 |
Depreciation and amortization | 11,000 | 21,000 |
Loss on equity method investment | 153,000 | 896,000 |
Loss (gain) on warrant liability | 142,000 | -953,000 |
Employee stock option expense | 622,000 | 206,000 |
Deferred income tax expense | ' | -23,000 |
Property abandonment and impairment | 20,000 | 13,000 |
Gain on asset and equity security sales | -472,000 | -319,000 |
Changes in operating assets and liabilities: | ' | ' |
Prepaid expenses and other current assets | 68,000 | 76,000 |
Accounts payable and other current liabilities | -177,000 | -18,000 |
Net cash used in operating activities | -1,256,000 | -1,811,000 |
Investing activities: | ' | ' |
Additions to mineral properties | -1,599,000 | -1,640,000 |
Sale of derivative instruments | 36,000 | ' |
Proceeds from mineral property sale receivable | ' | 4,000,000 |
Proceeds from sale of marketable equity securities | 556,000 | 358,000 |
Proceeds from asset sales | ' | 107,000 |
Other assets, net | 10,000 | 45,000 |
Net cash (used in) provided by investing activities | -997,000 | 2,870,000 |
Financing activities: | ' | ' |
Proceeds from issuance of common stock | 1,630,000 | 2,060,000 |
Short-term borrowing (net) | -802,000 | -1,500,000 |
Proceeds from long-term debt | 1,500,000 | 2,000,000 |
Repayment of long-term debt | ' | -750,000 |
Contribution from noncontrolling interest | ' | 250,000 |
Proceeds from exercise of options | ' | 183,000 |
Distribution to noncontrolling interest | ' | -50,000 |
Payment to noncontrolling interest | -250,000 | -500,000 |
Net cash provided by financing activities | 2,078,000 | 1,693,000 |
Net (decrease) increase in cash and cash equivalents | -175,000 | 2,752,000 |
Cash and cash equivalents, beginning of period | 2,092,000 | 616,000 |
Cash and cash equivalents, end of period | 1,917,000 | 3,368,000 |
Cash paid for interest, capitalized to mineral property | 154,000 | 137,000 |
Supplemental disclosure of non-cash activities: | ' | ' |
Capitalized non-cash interest | 309,000 | 420,000 |
Capitalized depreciation | 20,000 | 23,000 |
Issuance of stock to noncontrolling interest | 76,000 | 126,000 |
Issuance of stock for mineral property | 38,000 | 41,000 |
Issuance of stock to settle severance liability | $45,000 | ' |
Business_and_Significant_Accou
Business and Significant Accounting Policies | 9 Months Ended | ||||
Sep. 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. Solitario may explore other strategic options with respect to the Mt. Hamilton project, including a potential sale of all or a part of its interest or other contractual arrangements intended to monetize its interest. 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 September 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 nine months ended September 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 September 30, 2014 and December 31, 2013, which consists of the following: | |||||
(in thousands) | 30-Sep-14 | December 31, | |||
2013 | |||||
Shares | 480 | 600 | |||
Fair value | |||||
Current assets | $1,584 | $1,577 | |||
Long term assets | $ - | $1,051 | |||
During the three and nine months ended September 30, 2014 and 2013, Solitario sold the following shares of Kinross: | |||||
(in thousands) | Three months ended | Nine months ended | |||
30-Sep | 30-Sep | ||||
2014 | 2013 | 2014 | 2013 | ||
Shares sold | 20 | 10 | 120 | 70 | |
Proceeds | $83 | $45 | $556 | $358 | |
Gain on sale | $69 | $38 | $472 | $308 | |
At December 31, 2013, Solitario had borrowed $802,000 in short-term margin loans against its holdings of Kinross shares, which loans were paid during the nine months ended September 30, 2014. The short-term margin loans are discussed below under, “Short-term debt.” As of November 3, 2014 we own 480,000 shares of Kinross common stock which have a value of approximately $1.0 million based upon the market price of $2.22 per Kinross share as of such date. 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 nine months ended September 30, 2014 recorded a loss of $nil and $153,000, respectively, in its equity method investment for Solitario’s share of the loss of PBM. During the nine months ended September 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 $461,000 as of September 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 nine months ended September 30, 2014, Solitario recorded $511,000 and $622,000, 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 nine months ended September 30, 2013, Solitario recorded $13,000 and $206,000, 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 having 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 optionsto acquire 264,000 shares expired unexercised and were available for grant from such date under the 2006 Plan. | |||||
During the three and nine months ended September 30, 2014, Solitario granted options under the 2006 Plan to acquire 1,990,000 shares with an exercise price of Cdn$1.60 per share, the closing price of a share of Solitario common stock as quoted on the Toronto Stock Exchange on the date of grant. The options have a term of five years, vest 25% on the date of grant and 25% on each subsequent anniversary date and had a grant date fair value of $1,618,000 based upon a Black Scholes model with a 66% expected volatility, an expected life of five years and a risk free interest rate of 1.55%. There were no new options granted during the three and nine months ended September 30, 2013 under the 2006 Plan. | |||||
No options were exercised during the three and nine months ended September 30, 2014. During the nine months ended September 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 nine months ended September 30, 2014, Solitario granted restricted stock units from the 2013 Plan for a total of 50,562 shares, which vested upon grant. These restricted stock units were granted to two former employees as part of their severance upon their termination from Solitario. During the nine months ended September 30, 2013, Solitario granted options to acquire 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 nine months ended September 30, 2014 and 2013. During the three and nine months ended September 30, 2014 and 2013, Solitario excluded 3,748,000 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 nine months ended September 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) | September 30, 2014 | December 31, 2013 | |||
Marketable equity securities at fair value | $3,012 | $3,973 | |||
Cost | 1,869 | 1,954 | |||
Accumulated other comprehensive income for | 1,143 | 2,019 | |||
unrealized holding gains | |||||
Deferred taxes on accumulated other comprehensive | -1,559 | -1,559 | |||
income for unrealized holding gains | |||||
Accumulated other comprehensive (loss) income | ($416) | $460 | |||
The following table represents changes in marketable equity securities. | |||||
(in thousands) | Three months ended | Nine months ended | |||
September 30, | 30-Sep | ||||
2014 | 2013 | 2014 | 2013 | ||
Gross cash proceeds | $ 83 | $ 45 | $ 556 | $ 358 | |
Cost | 14 | 7 | 84 | 50 | |
Gross gain on sale included in earnings during the period | (69) | (38) | (472) | (308) | |
Deferred taxes on gross gain on sale included in earnings | - | 14 | - | 115 | |
Reclassification adjustment to unrealized gain in other | -69 | -24 | -472 | -193 | |
comprehensive income for net gains included in earnings | |||||
Gross unrealized holding (loss) gain arising during the period | -625 | -187 | -404 | -3,445 | |
included in other comprehensive loss | |||||
Deferred taxes on unrealized holding gain (loss) included in | - | (61) | - | 813 | |
other comprehensive loss | |||||
Net unrealized holding (loss) gain | -625 | -248 | -404 | -2,632 | |
Other comprehensive (loss) income from marketable equity | ($694) | ($272) | ($876) | ($2,825) | |
Securities |
Mineral_Property
Mineral Property | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Notes to Financial Statements | ' | ||||
Mineral Property | ' | ||||
2. Mineral Property | |||||
The following table details Solitario’s investment in Mineral Property: | |||||
(in thousands) | September 30, | December 31, | |||
2014 | 2013 | ||||
Development (United States) | |||||
Mt. Hamilton | $14,025 | $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 | $14,044 | $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 Mt. Hamilton LLC (“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 | Nine months ended | |||
September 30, | September 30, | ||||
2014 | 2013 | 2014 | 2013 | ||
Development expenditures | $ 543 | $ 601 | $ 1,383 | $ 1,369 | |
Capitalized interest | 161 | 184 | 463 | 557 | |
Property payments | - | 75 | 100 | 175 | |
Capitalized depreciation | 4 | 7 | 20 | 23 | |
Total capitalized costs | $ 708 | $ 867 | $ 1,966 | $ 2,124 | |
Initial property and lease payments on our exploration properties are capitalized to mineral property. All exploration costs on our exploration properties, none of which have proven and probable reserves, including exploration activities related to our projects and any additional costs incurred for subsequent lease payments or are expensed as incurred. | |||||
Discontinued projects | |||||
Solitario recorded $20,000 of mineral property write-downs during the nine months ended September 30, 2014 related to its Pachuca silver property in Mexico. During the nine months ended September 30, 2013, Solitario recorded $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 | Nine months ended | |||
September 30 | September 30, | ||||
2014 | 2013 | 2014 | 2013 | ||
Geologic and field expenses | $38 | $28 | $176 | $521 | |
Administrative | 20 | 48 | 66 | 253 | |
Total exploration costs | $58 | $ 76 | $242 | $ 774 |
Other_Assets
Other Assets | 9 Months Ended | ||
Sep. 30, 2014 | |||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | ||
Other Assets | ' | ||
3. Other Assets | |||
The following items comprised other assets: | |||
(in thousands) | September 30, 2014 | 31-Dec-13 | |
Deferred offering costs RMB Loan | $175 | $322 | |
Accumulated Mt. Hamilton advance royalty payments | 600 | 600 | |
Furniture and Fixtures, net of accumulated depreciation | 64 | 95 | |
Exploration bonds and other assets | 42 | 52 | |
Total other assets | $ 881 | $ 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 | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Debt Disclosure [Abstract] | ' | ||||
Short Term Debt | ' | ||||
4. Short-term Debt | |||||
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 was permitted to 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, In connection with the Facility Agreement, Solitario recorded a warrant discount related to the warrants issued to RMBAH 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 is due in full on August 21, 2015, and outstanding 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 September 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. Prior to August 21, 2014, Solitario classified the RMB Loan as long-term debt. | |||||
The following table summarizes the RMB Loan: | |||||
RMB | RMB | RMB | |||
(in thousands) | Loan borrowing | Warrant discount | Debt | ||
balance | |||||
Beginning balance December 31, 2013 (long-term debt) | $ 3,500 | ($356) | $3,144 | ||
Borrowing | 1,500 | - | 1,500 | ||
Amortization of discount to interest cost | - | 162 | 162 | ||
Ending balance September 30, 2014 (short-term debt) | $5,000 | ($194) | 4,806 | ||
Solitario recorded the following interest cost related to the RMB Loan: | |||||
(in thousands) | Three months ended | Nine months ended | |||
September 30, | September 30, | ||||
2014 | 2013 | 2014 | 2013 | ||
Interest paid in cash | $ 54 | $ 48 | $ 150 | $ 118 | |
Amortization of the RMB Warrants discount | 54 | 55 | 162 | 163 | |
Amortization of RMB deferred financing costs | 49 | 49 | 147 | 147 | |
Total interest cost related to the RMB Loan | $157 | $152 | $459 | $428 | |
UBS credit line | |||||
During the nine months ended September 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 nine months ended September 30, 2014. Solitario paid its entire balance owing on the UBS secured line of credit during the nine months ended September 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 September 30, 2014 | $ - | ||||
(in thousands) | Three months ended | Nine months ended | |||
September 30, | September 30, | ||||
2014 | 2013 | 2014 | 2013 | ||
Interest UBS short-term credit line | $ - | $ 3 | $ 4 | $ 19 | |
During the three and nine months ended September 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 | 9 Months Ended |
Sep. 30, 2014 | |
Debt Disclosure [Abstract] | ' |
Long Term Debt | ' |
5. Long-term Debt | |
Augusta long-term debt | |
In connection with the formation of 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 nine months ended September 30, 2013, Solitario recorded $29,000 and $110,000 for accretion of interest costs related to the Augusta long-term debt, which was capitalized to mineral property. See Note 2, Mineral Properties, above. |
Derivative_Instruments
Derivative Instruments | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||
Derivative Instruments | ' | ||||
6. Derivative instruments | |||||
RMB Warrants | |||||
In August 2012, pursuant to the Facility Agreement, Solitario 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 September 30, 2014 and December 31, 2013 of $282,000 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 | Nine months ended | ||||
September 30, | September 30, | ||||
2014 | 2013 | 2014 | 2013 | ||
Gain (loss) in thousands | $ 77 | $ 96 | ($142) | $ 953 | |
Life (in months) | 11 | 23 | 11 | 23 | |
Volatility | 62% | 57% | 62% | 57% | |
Stock price (per share) | $1.20 | $0.86 | $1.20 | $0.86 | |
Risk free interest rate | 0.10% | 0.30% | 0.10% | 0.30% | |
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 nine months ended September 30, 2014, Solitario sold covered calls covering 130,000 shares for proceeds of $36,000. At September 30, 2014 these covered calls had expired unexercised and Solitario recorded a gain of $36,000 on these covered calls during the nine months ended September 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 nine months ended September 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 | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Notes to Financial Statements | ' | ||||
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 nine months ended September 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 September 30, 2014: | |||||
(in thousands) | Level 1 | Level 2 | Level 3 | Total | |
Assets | |||||
Marketable equity securities | $3,012 | $ - | $- | $3,012 | |
Liabilities | |||||
RMB warrants | - | 282 | - | 282 | |
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 | 9 Months Ended | ||||
Sep. 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 September 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 nine months ended September 30, 2014 and 2013: | |||||
(in thousands) | Three months ended | Nine months ended | |||
September 30, | September 30, | ||||
2014 | 2013 | 2014 | 2013 | ||
Income tax benefit | $ - | $ 47 | $ - | $ 23 | |
Deferred tax (expense) benefit on unrealized losses on | $ - | ($47) | $ - | $ 928 | |
marketable equity securities in other comprehensive | |||||
income |
Shareholders_Equity_Comprehens
Shareholders' Equity, Comprehensive Loss and Noncontrolling Interest | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Equity: | ' | ||||||||
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 | 50,562 | - | 45 | - | - | 45 | - | 45 | |
Grant | |||||||||
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 | |
Stock option expense | - | - | 511 | - | - | 511 | - | 511 | |
Net loss | - | - | - | -505 | - | -505 | -3 | -508 | |
Net unrealized gain on marketable | - | - | - | - | -694 | -694 | - | -694 | |
equity securities | |||||||||
Balance at September 30, 2014 | 39,247,689 | $393 | $54,356 | ($46,306) | ($416) | $8,027 | ($439) | $7,588 | |
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 that 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 nine months ended September 30, 2014, Solitario paid 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 nine months ended September 30, 2014, Solitario delivered 35,000 shares of Solitario common stock, valued at $38,000, plus $62,000 of cash to an underlying leaseholder at Mt. Hamilton in accordance with the terms of the lease. |
Segment_Reporting
Segment Reporting | 9 Months Ended | ||||||||
Sep. 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 nine months ended September 30, 2014 and 2013: | |||||||||
(in thousands) | Three months ended September 30, | ||||||||
Mt Hamilton | Exploration | Corporate and Other | Consolidated | ||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||
Exploration expense | $- | $ - | $58 | $76 | $ - | $ - | $58 | $76 | |
Interest expense (2) | - | - | - | - | - | - | - | - | |
Other loss (income) (1)(3) | - | 7 | (149) | -217 | 599 | 388 | 450 | 178 | |
Pre-tax loss (income) | $ - | $ 7 | $(91) | ($141) | $599 | $388 | $508 | $254 | |
-1 | Includes loss on unconsolidated subsidiary and property and joint venture revenue. | ||||||||
-2 | Interest cost and Mt. Hamilton 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) | Nine months ended September 30, | ||||||||
Mt Hamilton | Exploration | Corporate and Other | Consolidated | ||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||
Exploration expense | $ - | $ - | $242 | $774 | $ - | $ - | $242 | $ 774 | |
Interest expense (2) | - | - | - | - | - | - | - | - | |
Other loss (income) (1)(3) | - | 22 | 36 | 571 | 1,306 | 299 | 1,342 | 892 | |
Pre-tax loss | $ - | $ 22 | $278 | $1,345 | $1,306 | $ 299 | $1,584 | $ 1,666 | |
Total assets (4)(5) | $15,235 | $14,012 | $385 | $1,195 | $4,281 | $4,610 | $19,901 | $19,818 | |
Capital Expenditures (2) | $ 1,966 | $ 2,124 | $ - | $ 4 | $ - | $ 5 | $ 1,966 | $ 2,133 | |
-1 | Includes loss on unconsolidated subsidiary and property and joint venture revenue. | ||||||||
-2 | Interest cost and Mt. Hamilton 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) | 9 Months Ended | ||||
Sep. 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. Solitario may explore other strategic options with respect to the Mt. Hamilton project, including a potential sale of all or a part of its interest or other contractual arrangements intended to monetize its interest. 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 September 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 nine months ended September 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 September 30, 2014 and December 31, 2013, which consists of the following: | |||||
(in thousands) | 30-Sep-14 | December 31, | |||
2013 | |||||
Shares | 480 | 600 | |||
Fair value | |||||
Current assets | $1,584 | $1,577 | |||
Long term assets | $ - | $1,051 | |||
During the three and nine months ended September 30, 2014 and 2013, Solitario sold the following shares of Kinross: | |||||
(in thousands) | Three months ended | Nine months ended | |||
30-Sep | 30-Sep | ||||
2014 | 2013 | 2014 | 2013 | ||
Shares sold | 20 | 10 | 120 | 70 | |
Proceeds | $83 | $45 | $556 | $358 | |
Gain on sale | $69 | $38 | $472 | $308 | |
At December 31, 2013, Solitario had borrowed $802,000 in short-term margin loans against its holdings of Kinross shares, which loans were paid during the nine months ended September 30, 2014. The short-term margin loans are discussed below under, “Short-term debt.” As of November 3, 2014 we own 480,000 shares of Kinross common stock which have a value of approximately $1.0 million based upon the market price of $2.22 per Kinross share as of such date. 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 nine months ended September 30, 2014 recorded a loss of $nil and $153,000, respectively, in its equity method investment for Solitario’s share of the loss of PBM. During the nine months ended September 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 $461,000 as of September 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 nine months ended September 30, 2014, Solitario recorded $511,000 and $622,000, 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 nine months ended September 30, 2013, Solitario recorded $13,000 and $206,000, 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 having 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 to acquire 264,000 shares expired unexercised and were available for grant from such date under the 2006 Plan. | |||||
During the three and nine months ended September 30, 2014, Solitario granted options under the 2006 Plan to acquire 1,990,000 shares with an exercise price of Cdn$1.60 per share, the closing price of a share of Solitario common stock as quoted on the Toronto Stock Exchange on the date of grant. The options have a term of five years, vest 25% on the date of grant and 25% on each subsequent anniversary date and had a grant date fair value of $1,618,000 based upon a Black Scholes model with a 66% expected volatility, an expected life of five years and a risk free interest rate of 1.55%. There were no new options granted during the three and nine months ended September 30, 2013 under the 2006 Plan. | |||||
No options were exercised during the three and nine months ended September 30, 2014. During the nine months ended September 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 nine months ended September 30, 2014, Solitario granted restricted stock units from the 2013 Plan for a total of 50,562 shares, which vested upon grant. These restricted stock units were granted to two former employees as part of their severance upon termination from Solitario. During the nine months ended September 30, 2013, Solitario granted optionsto acquire 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 nine months ended September 30, 2014 and 2013. During the three and nine months ended September 30, 2014 and 2013, Solitario excluded 3,748,000 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 nine months ended September 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) | September 30, 2014 | December 31, 2013 | |||
Marketable equity securities at fair value | $3,012 | $3,973 | |||
Cost | 1,869 | 1,954 | |||
Accumulated other comprehensive income for | 1,143 | 2,019 | |||
unrealized holding gains | |||||
Deferred taxes on accumulated other comprehensive | -1,559 | -1,559 | |||
income for unrealized holding gains | |||||
Accumulated other comprehensive (loss) income | ($416) | $460 | |||
The following table represents changes in marketable equity securities. | |||||
(in thousands) | Three months ended | Nine months ended | |||
September 30, | 30-Sep | ||||
2014 | 2013 | 2014 | 2013 | ||
Gross cash proceeds | $ 83 | $ 45 | $ 556 | $ 358 | |
Cost | 14 | 7 | 84 | 50 | |
Gross gain on sale included in earnings during the period | (69) | (38) | (472) | (308) | |
Deferred taxes on gross gain on sale included in earnings | - | 14 | - | 115 | |
Reclassification adjustment to unrealized gain in other | -69 | -24 | -472 | -193 | |
comprehensive income for net gains included in earnings | |||||
Gross unrealized holding (loss) gain arising during the period | -625 | -187 | -404 | -3,445 | |
included in other comprehensive loss | |||||
Deferred taxes on unrealized holding gain (loss) included in | - | (61) | - | 813 | |
other comprehensive loss | |||||
Net unrealized holding (loss) gain | -625 | -248 | -404 | -2,632 | |
Other comprehensive (loss) income from marketable equity | ($694) | ($272) | ($876) | ($2,825) | |
Securities |
Business_and_Significant_Accou2
Business and Significant Accounting Policies (Tables) | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Accounting Policies [Abstract] | ' | ||||
Investment in Kinross Gold Corporation | ' | ||||
(in thousands) | 30-Sep-14 | December 31, | |||
2013 | |||||
Shares | 480 | 600 | |||
Fair value | |||||
Current assets | $1,584 | $1,577 | |||
Long term assets | $ - | $1,051 | |||
Sales of Kinross Gold Stock | ' | ||||
(in thousands) | Three months ended | Nine months ended | |||
30-Sep | 30-Sep | ||||
2014 | 2013 | 2014 | 2013 | ||
Shares sold | 20 | 10 | 120 | 70 | |
Proceeds | $83 | $45 | $556 | $358 | |
Gain on sale | $69 | $38 | $472 | $308 | |
Summary of Marketable Securities and Accumulated OCI | ' | ||||
(in thousands) | September 30, 2014 | December 31, 2013 | |||
Marketable equity securities at fair value | $3,012 | $3,973 | |||
Cost | 1,869 | 1,954 | |||
Accumulated other comprehensive income for | 1,143 | 2,019 | |||
unrealized holding gains | |||||
Deferred taxes on accumulated other comprehensive | -1,559 | -1,559 | |||
income for unrealized holding gains | |||||
Accumulated other comprehensive (loss) income | ($416) | $460 | |||
Changes in Marketable Securities | ' | ||||
(in thousands) | Three months ended | Nine months ended | |||
September 30, | 30-Sep | ||||
2014 | 2013 | 2014 | 2013 | ||
Gross cash proceeds | $ 83 | $ 45 | $ 556 | $ 358 | |
Cost | 14 | 7 | 84 | 50 | |
Gross gain on sale included in earnings during the period | (69) | (38) | (472) | (308) | |
Deferred taxes on gross gain on sale included in earnings | - | 14 | - | 115 | |
Reclassification adjustment to unrealized gain in other | -69 | -24 | -472 | -193 | |
comprehensive income for net gains included in earnings | |||||
Gross unrealized holding (loss) gain arising during the period | -625 | -187 | -404 | -3,445 | |
included in other comprehensive loss | |||||
Deferred taxes on unrealized holding gain (loss) included in | - | (61) | - | 813 | |
other comprehensive loss | |||||
Net unrealized holding (loss) gain | -625 | -248 | -404 | -2,632 | |
Other comprehensive (loss) income from marketable equity | ($694) | ($272) | ($876) | ($2,825) | |
Securities |
Mineral_Property_Tables
Mineral Property (Tables) | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Notes to Financial Statements | ' | ||||
Investment in Mineral Properties | ' | ||||
(in thousands) | September 30, | December 31, | |||
2014 | 2013 | ||||
Development (United States) | |||||
Mt. Hamilton | $14,025 | $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 | $14,044 | $12,098 | |||
Capitalized Development Costs | ' | ||||
(in thousands) | Three months ended | Nine months ended | |||
September 30, | September 30, | ||||
2014 | 2013 | 2014 | 2013 | ||
Development expenditures | $ 543 | $ 601 | $ 1,383 | $ 1,369 | |
Capitalized interest | 161 | 184 | 463 | 557 | |
Property payments | - | 75 | 100 | 175 | |
Capitalized depreciation | 4 | 7 | 20 | 23 | |
Total capitalized costs | $ 708 | $ 867 | $ 1,966 | $ 2,124 | |
Exploration Expense | ' | ||||
(in thousands) | Three months ended | Nine months ended | |||
September 30 | September 30, | ||||
2014 | 2013 | 2014 | 2013 | ||
Geologic and field expenses | $38 | $28 | $176 | $521 | |
Administrative | 20 | 48 | 66 | 253 | |
Total exploration costs | $58 | $ 76 | $242 | $ 774 |
Other_Assets_Tables
Other Assets (Tables) | 9 Months Ended | ||
Sep. 30, 2014 | |||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | ||
Other Assets | ' | ||
(in thousands) | September 30, 2014 | 31-Dec-13 | |
Deferred offering costs RMB Loan | $175 | $322 | |
Accumulated Mt. Hamilton advance royalty payments | 600 | 600 | |
Furniture and Fixtures, net of accumulated depreciation | 64 | 95 | |
Exploration bonds and other assets | 42 | 52 | |
Total other assets | $ 881 | $ 1,069 |
Short_Term_Debt_Tables
Short Term Debt (Tables) | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Debt Disclosure [Abstract] | ' | ||||
Schedule of RMB Loan | ' | ||||
RMB | RMB | RMB | |||
(in thousands) | Loan borrowing | Warrant discount | Debt | ||
balance | |||||
Beginning balance December 31, 2013 (long-term debt) | $ 3,500 | ($356) | $3,144 | ||
Borrowing | 1,500 | - | 1,500 | ||
Amortization of discount to interest cost | - | 162 | 162 | ||
Ending balance September 30, 2014 (short-term debt) | $5,000 | ($194) | 4,806 | ||
Interest Costs Related to RMB Loan | ' | ||||
(in thousands) | Three months ended | Nine months ended | |||
September 30, | September 30, | ||||
2014 | 2013 | 2014 | 2013 | ||
Interest paid in cash | $ 54 | $ 48 | $ 150 | $ 118 | |
Amortization of the RMB Warrants discount | 54 | 55 | 162 | 163 | |
Amortization of RMB deferred financing costs | 49 | 49 | 147 | 147 | |
Total interest cost related to the RMB Loan | $157 | $152 | $459 | $428 | |
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 September 30, 2014 | $ - | ||||
For Period | ' | ||||
(in thousands) | Three months ended | Nine months ended | |||
September 30, | September 30, | ||||
2014 | 2013 | 2014 | 2013 | ||
Interest UBS short-term credit line | $ - | $ 3 | $ 4 | $ 19 |
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||
Derivative Instruments Gain Loss RMB Warrants | ' | ||||
Three months ended | Nine months ended | ||||
September 30, | September 30, | ||||
2014 | 2013 | 2014 | 2013 | ||
Gain (loss) in thousands | $ 77 | $ 96 | ($142) | $ 953 | |
Life (in months) | 11 | 23 | 11 | 23 | |
Volatility | 62% | 57% | 62% | 57% | |
Stock price (per share) | $1.20 | $0.86 | $1.20 | $0.86 | |
Risk free interest rate | 0.10% | 0.30% | 0.10% | 0.30% |
Fair_Value_Tables
Fair Value (Tables) | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Notes to Financial Statements | ' | ||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis September 30, 2014 | ' | ||||
(in thousands) | Level 1 | Level 2 | Level 3 | Total | |
Assets | |||||
Marketable equity securities | $3,012 | $ - | $- | $3,012 | |
Liabilities | |||||
RMB warrants | - | 282 | - | 282 | |
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) | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Income Tax Disclosure [Abstract] | ' | ||||
Income Tax Changes in Income Tax | ' | ||||
(in thousands) | Three months ended | Nine months ended | |||
September 30, | September 30, | ||||
2014 | 2013 | 2014 | 2013 | ||
Income tax benefit | $ - | $ 47 | $ - | $ 23 | |
Deferred tax (expense) benefit on unrealized losses on | $ - | ($47) | $ - | $ 928 | |
marketable equity securities in other comprehensive | |||||
income |
Shareholders_Equity_Comprehens1
Shareholders' Equity, Comprehensive Loss and Noncontrolling Interest (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Equity: | ' | ||||||||
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 | 50,562 | - | 45 | - | - | 45 | - | 45 | |
Grant | |||||||||
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 | |
Stock option expense | - | - | 511 | - | - | 511 | - | 511 | |
Net loss | - | - | - | -505 | - | -505 | -3 | -508 | |
Net unrealized gain on marketable | - | - | - | - | -694 | -694 | - | -694 | |
equity securities | |||||||||
Balance at September 30, 2014 | 39,247,689 | $393 | $54,356 | ($46,306) | ($416) | $8,027 | ($439) | $7,588 |
Segment_Reporting_Tables
Segment Reporting (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Segment Activity for Three Months | ' | ||||||||
(in thousands) | Three months ended September 30, | ||||||||
Mt Hamilton | Exploration | Corporate and Other | Consolidated | ||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||
Exploration expense | $- | $ - | $58 | $76 | $ - | $ - | $58 | $76 | |
Interest expense (2) | - | - | - | - | - | - | - | - | |
Other loss (income) (1)(3) | - | 7 | (149) | -217 | 599 | 388 | 450 | 178 | |
Pre-tax loss (income) | $ - | $ 7 | $(91) | ($141) | $599 | $388 | $508 | $254 | |
Segment Activity for Nine Months | ' | ||||||||
(in thousands) | Nine months ended September 30, | ||||||||
Mt Hamilton | Exploration | Corporate and Other | Consolidated | ||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||
Exploration expense | $ - | $ - | $242 | $774 | $ - | $ - | $242 | $ 774 | |
Interest expense (2) | - | - | - | - | - | - | - | - | |
Other loss (income) (1)(3) | - | 22 | 36 | 571 | 1,306 | 299 | 1,342 | 892 | |
Pre-tax loss | $ - | $ 22 | $278 | $1,345 | $1,306 | $ 299 | $1,584 | $ 1,666 | |
Total assets (4)(5) | $15,235 | $14,012 | $385 | $1,195 | $4,281 | $4,610 | $19,901 | $19,818 | |
Capital Expenditures (2) | $ 1,966 | $ 2,124 | $ - | $ 4 | $ - | $ 5 | $ 1,966 | $ 2,133 |
Business_and_Significant_Accou3
Business and Significant Accounting Policies - Investment in Kinross Gold Corporation (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Accounting Policies [Abstract] | ' | ' |
Shares | 480,000 | 600,000 |
Current assets | $1,584,000 | $1,577,000 |
Long term assets | ' | $1,051,000 |
Business_and_Significant_Accou4
Business and Significant Accounting Policies - Sales of Kinross Gold Stock (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' | ' | ' | ' |
Shares sold | 20,000 | 10,000 | 120,000 | 70,000 |
Proceeds | $83,000 | $45,000 | $556,000 | $358,000 |
Gain on sale | $69,000 | $38,000 | $472,000 | $308,000 |
Business_and_Significant_Accou5
Business and Significant Accounting Policies - Summary of Marketable Securities and Accumulated OCI (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Accounting Policies [Abstract] | ' | ' |
Marketable equity securities at fair value | $3,012,000 | $3,973,000 |
Cost | 1,869,000 | 1,954,000 |
Accumulated other comprehensive income for unrealized holding gains | 1,143,000 | 2,019,000 |
Deferred taxes on accumulated other comprehensive income for unrealized holding gains | -1,559,000 | -1,559,000 |
Accumulated other comprehensive (loss) income | ($416,000) | $460,000 |
Business_and_Significant_Accou6
Business and Significant Accounting Policies - Changes in Marketable Securities (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' | ' | ' | ' |
Gross cash proceeds | $83,000 | $45,000 | $556,000 | $358,000 |
Cost | 14,000 | 7,000 | 84,000 | 50,000 |
Gross gain on sale included in earnings during the period | -69,000 | -38,000 | -472,000 | -308,000 |
Deferred taxes on gross gain on sale included in earnings | ' | 14,000 | ' | 115,000 |
Reclassification adjustment to unrealized gain in other comprehensive income for net gains included in earnings | -69,000 | -24,000 | -472,000 | -193,000 |
Gross unrealized holding (loss) gain arising during the period included in other comprehensive loss | -625,000 | -187,000 | -404,000 | -3,445,000 |
Deferred taxes on unrealized holding gain (loss) included in other comprehensive loss | ' | -61,000 | ' | 813,000 |
Net unrealized holding (loss) gain | -625,000 | -248,000 | -404,000 | -2,632,000 |
Other comprehensive (loss) income from marketable equity Securities | ($694,000) | ($272,000) | ($876,000) | ($2,825,000) |
Business_and_Significant_Accou7
Business and Significant Accounting Policies (Details Narrative) (USD $) | 3 Months Ended | 9 Months Ended | |||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Nov. 03, 2014 | Aug. 15, 2014 | 19-May-14 | Jan. 28, 2014 | Dec. 31, 2013 | Jun. 18, 2013 | Jun. 27, 2006 | |
Accounting Policies [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount borrowed in short-term margin loans against holding of Kinross shares | ' | ' | ' | ' | ' | ' | ' | ' | $802,000 | ' | ' |
Shares of Kinross owned | ' | ' | ' | ' | 480,000 | ' | ' | ' | ' | ' | ' |
Value of Kinross shares owned at a market price of $2.22 per share | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' |
Equity investment in unconsolidated subsidiary | ' | ' | 153,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized losses related to 49% interest in unconsolidated subsidiary | ' | ' | 461,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Options available under 2006 Stock Option Incentive Plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,800,000 |
Awards at Cdn$2.40 voluntarily cancelled under 2006 Plan | ' | ' | ' | ' | ' | ' | ' | 1,797,000 | ' | ' | ' |
Grant date fair value of options under 2006 Stock Option Incentive Plan | ' | ' | ' | ' | ' | 1,618,000 | ' | ' | ' | ' | ' |
Options expired | ' | ' | ' | ' | ' | ' | 264,000 | ' | ' | ' | ' |
Proceeds from options exercised of 112,500 shares at Cdn$1.55 | ' | ' | ' | 176,000 | ' | ' | ' | ' | ' | ' | ' |
Proceeds from options exercised of 5,000 shares at Cdn$1.49 | ' | ' | ' | 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 | ' | ' | ' | ' | ' | ' | ' |
Potentially dilutive shares relatred to options excluded from earnings per share | 3,748,000 | 2,600,900 | 3,748,000 | 2,600,900 | ' | ' | ' | ' | ' | ' | ' |
Shares related to warrants excluded from earnings per share | 1,624,748 | 1,624,748 | 1,624,748 | 1,624,748 | ' | ' | ' | ' | ' | ' | ' |
Stock option expense for the amortization of grant date fair value | 511,000 | 13,000 | 622,000 | 206,000 | ' | ' | ' | ' | ' | ' | ' |
Options granted under 2006 plan at Cdn$1.60 per share | 1,990,000 | ' | 1,990,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Grant date fair value of options granted under 2006 Plan | ' | ' | $78,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Mineral_Property_Investment_in
Mineral Property - Investment in Mineral Properties (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Development (United States) | ' | ' |
Mt. Hamilton | $14,025,000 | $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 | $14,044,000 | $12,098,000 |
Mineral_Property_Capitalized_D
Mineral Property - Capitalized Development Costs (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Notes to Financial Statements | ' | ' | ' | ' |
Development expenditures | $543,000 | $601,000 | $1,383,000 | $1,369,000 |
Capitalized interest | 161,000 | 184,000 | 463,000 | 557,000 |
Property payments | ' | 75,000 | 100,000 | 175,000 |
Capitalized depreciation | 4,000 | 7,000 | 20,000 | 23,000 |
Total capitalized costs | $708,000 | $867,000 | $1,966,000 | $2,124,000 |
Mineral_Property_Exploration_E
Mineral Property - Exploration Expense (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Notes to Financial Statements | ' | ' | ' | ' |
Geologic and field expenses | $38,000 | $28,000 | $176,000 | $521,000 |
Administrative | 20,000 | 48,000 | 66,000 | 253,000 |
Total exploration costs | $58,000 | $76,000 | $242,000 | $774,000 |
Mineral_Property_Details_Narra
Mineral Property (Details Narrative) (USD $) | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Feb. 22, 2012 | |
Notes to Financial Statements | ' | ' | ' |
Interest earned in Mt. Hamilton project 2/22/12 | ' | ' | 80.00% |
Mineral property write-downs related to Pachuca silver property | $20,000 | ' | ' |
Mineral property write-downs related to Cerro Azul project | ' | $13,000 | ' |
Other_Assets_Other_Assets_Deta
Other Assets - Other Assets (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | ' |
Deferred offering costs RMB Loan | $175,000 | $322,000 |
Accumulated Mt. Hamilton advance royalty payments | 600,000 | 600,000 |
Furniture and Fixtures, net of accumulated depreciation | 64,000 | 95,000 |
Exploration bonds and other assets | 42,000 | 52,000 |
Total other assets | $881,000 | $1,069,000 |
Short_Term_Debt_RMB_Loan_Summa
Short Term Debt RMB Loan Summary (Details) (USD $) | 9 Months Ended |
Sep. 30, 2014 | |
RMB Loan Borrowing | ' |
Beginning balance (long term debt) | $3,500,000 |
Borrowing | 1,500,000 |
Amortization of discount to interest cost | ' |
Ending balance (short term debt) | 5,000,000 |
RMB Warrant Discount | ' |
Beginning balance (long term debt) | -356,000 |
Borrowing | ' |
Amortization of discount to interest cost | 162,000 |
Ending balance (short term debt) | -194,000 |
RMB Debt Balance | ' |
Beginning balance (long term debt) | 3,144,000 |
Borrowing | 1,500,000 |
Amortization of discount to interest cost | 162,000 |
Ending balance (short term debt) | $4,806,000 |
Short_Term_Debt_Interest_Costs
Short Term Debt - Interest Costs Related to RMB Loan (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Debt Disclosure [Abstract] | ' | ' | ' | ' |
Interest paid in cash | $54,000 | $48,000 | $150,000 | $118,000 |
Amortization of the RMB Warrants discount | 54,000 | 55,000 | 162,000 | 163,000 |
Amortization of RMB deferred financing costs | 49,000 | 49,000 | 147,000 | 147,000 |
Total interest cost related to the RMB Loan | $157,000 | $152,000 | $459,000 | $428,000 |
Short_Term_Debt_Schedule_of_Sh
Short Term Debt - Schedule of Short Term Debt (Details) (USD $) | Sep. 30, 2014 |
UBS short-term credit line | ' |
Beginning balance | $802,000 |
Borrowing | 104,000 |
Repayments | -906,000 |
Ending balance | ' |
Short_Term_Debt_For_Period_Det
Short Term Debt - For Period (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Debt Disclosure [Abstract] | ' | ' | ' | ' |
Interest UBS short-term credit line | ' | $3,000 | $4,000 | $19,000 |
Short_Term_Debt_Details_Narrat
Short Term Debt (Details Narrative) (USD $) | Aug. 10, 2012 |
Debt Disclosure [Abstract] | ' |
Available to borrow from RMBAH | $5,000,000 |
Long_Term_Debt_Details_Narrati
Long Term Debt (Details Narrative) (USD $) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2013 | Aug. 10, 2012 | |
Debt Disclosure [Abstract] | ' | ' | ' |
Private placement investment in Ely common stock | ' | ' | $2,500,000 |
Accretion of interest costs related to Augusta long term debt | $29,000 | $110,000 | ' |
Derivative_Instruments_Derivat
Derivative Instruments - Derivative Instruments Gain Loss RMB Warrants (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ' | ' | ' |
Gain (loss) in thousands | $77 | $96 | ($142) | $953 |
Life (in months) | 11 | 23 | 11 | 23 |
Volatility | 0.62 | 0.57 | 0.62 | 0.57 |
Stock price (per share) | 0.001 | 0.003 | 0.001 | 0.003 |
Risk free interest rate | 0.001 | 0.003 | 0.001 | 0.003 |
Derivative_Instruments_Details
Derivative Instruments (Details Narrative) (USD $) | 9 Months Ended | ||
Sep. 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 | $282,000 | $140,000 | ' |
Gain recorded from expired covered calls | 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 (Details) (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2014 | Dec. 31, 2013 | |
Assets | ' | ' |
Marketable equity securities Level 1 | $3,012,000 | $3,973,000 |
Marketable equity securities Level 2 | ' | ' |
Marketable equity securities Level 3 | ' | ' |
Marketable equity securities Total | 3,012,000 | 3,973,000 |
Liabilities | ' | ' |
RMB warrants Level 1 | ' | ' |
RMB warrants Level 2 | 282,000 | 140,000 |
RMB warrants Level 3 | ' | ' |
RMB warrants Total | 282,000 | 140,000 |
Kinross calls Level 1 | ' | 3,000 |
Kinross calls Level 2 | ' | ' |
Kinross calls Level 3 | ' | ' |
Kinross calls Total | ' | $3,000 |
Income_Taxes_Income_Tax_Change
Income Taxes - Income Tax Changes in Income Tax (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Income tax benefit | ' | $47,000 | ' | $23,000 |
Deferred tax (expense) benefit on unrealized losses on marketable equity securities in other comprehensive income | ' | ($47,000) | ' | $928,000 |
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 Shareholders' Equity |
Beginning balance, value at Dec. 31, 2013 | $375,000 | $51,963,000 | ($44,730) | $460,000 | $8,068,000 | ($105,000) | $7,963,000 |
Beginning balance, shares at Dec. 31, 2013 | 37,512,127 | ' | ' | ' | ' | ' | ' |
Issuance of shares from restricted stock grant, value | ' | 45,000 | ' | ' | 45,000 | ' | 45,000 |
Issuance of shares 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 | ' | ' | ' | ' | ' | -250,000 | -250,000 |
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 | ' | ' | ' | ' | ' | ' |
Stock option expense | ' | 511,000 | ' | ' | 511,000 | ' | 511,000 |
Net loss | ' | ' | -505,000 | ' | -505,000 | -3,000 | -508,000 |
Net unrealized gain on marketable equity securities | ' | ' | ' | -694,000 | -694,000 | ' | -694,000 |
Ending balance, value at Sep. 30, 2014 | $393,000 | $54,356,000 | ($46,306,000) | ($416,000) | $8,027,000 | ($439,000) | $7,588,000 |
Ending balance, shares at Sep. 30, 2014 | 39,247,689 | ' | ' | ' | ' | ' | ' |
Shareholders_Equity_Comprehens3
Shareholders' Equity, Comprehensive Loss and Noncontrolling Interest (Details Narrative) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Feb. 28, 2014 | |
Equity: | ' | ' |
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 | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Exploration expense | ' | ' | ' | ' |
Mt Hamilton | ' | ' | ' | ' |
Exploration | 58,000 | 76,000 | 242,000 | 774,000 |
Corporate and Other | ' | ' | ' | ' |
Consolidated | 58,000 | 76,000 | 242,000 | 774,000 |
Interest expense (2) | ' | ' | ' | ' |
Mt Hamilton | ' | ' | ' | ' |
Exploration | ' | ' | ' | ' |
Corporate and Other | ' | ' | ' | ' |
Consolidated | ' | ' | ' | ' |
Other loss (income) (1)(3) | ' | ' | ' | ' |
Mt Hamilton | ' | 7,000 | ' | 22,000 |
Exploration | -149,000 | -217,000 | 36,000 | 571,000 |
Corporate and Other | 599,000 | 388,000 | 1,306,000 | 299,000 |
Consolidated | 450,000 | 178,000 | 1,342,000 | 592,000 |
Pre-tax loss | ' | ' | ' | ' |
Mt Hamilton | ' | 7,000 | ' | 22,000 |
Exploration | -91,000 | -141,000 | 278,000 | 1,345,000 |
Corporate and Other | 599,000 | 388,000 | 1,306,000 | 299,000 |
Consolidated | 508,000 | 254,000 | 1,584,000 | 1,666,000 |
Total assets (4)(5) | ' | ' | ' | ' |
Mt Hamilton | ' | ' | 15,235,000 | 14,012,000 |
Exploration | ' | ' | 385,000 | 1,195,000 |
Corporate and Other | ' | ' | 4,281,000 | 4,610,000 |
Consolidated | ' | ' | 19,901,000 | 19,818,000 |
Capital Expenditures (2) | ' | ' | ' | ' |
Mt Hamilton | ' | ' | 1,966,000 | 2,124,000 |
Exploration | ' | ' | ' | 4,000 |
Corporate and Other | ' | ' | ' | 5,000 |
Consolidated | ' | ' | $1,996,000 | $2,133,000 |