Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Aug. 10, 2015 | |
Document And Entity Information | ||
Entity Registrant Name | Solitario Exploration & Royalty Corp. | |
Entity Central Index Key | 917,225 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
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 | 39,314,189 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,015 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 64 | $ 869 |
Investments in marketable equity securities, at fair value | 1,125 | 2,308 |
Prepaid expenses and other | 49 | 40 |
Total current assets | 1,238 | 3,217 |
Mineral properties | 15,685 | 14,660 |
Other assets | 1,156 | 1,163 |
Total assets | 18,079 | 19,040 |
Current liabilities: | ||
Accounts payable | 450 | 343 |
Current portion long-term debt, net of discount | 4,969 | $ 4,861 |
Other | 1 | |
Total current liabilities | 5,420 | $ 5,204 |
Deferred gain on sale of mineral property | 7,000 | 7,000 |
Warrant liability | $ 34 | $ 55 |
Shareholders’ equity: | ||
Preferred stock, $0.01 par value, authorized 10,000,000 shares (none issued and outstanding at June 30, 2015 and December 31, 2014) | ||
Common stock, $0.01 par value, authorized 100,000,000 shares (39,314,189 and 39,247,689, respectively, shares issued and outstanding at June 30, 2015 and December 31, 2014) | $ 393 | $ 393 |
Additional paid-in capital | 54,876 | 54,512 |
Accumulated deficit | (47,154) | (46,563) |
Accumulated other comprehensive loss | (2,147) | (1,120) |
Total Solitario shareholders’ equity | 5,968 | 7,222 |
Noncontrolling interest | (343) | (441) |
Total shareholders’ equity | 5,625 | 6,781 |
Total liabilities and shareholders’ equity | $ 18,079 | $ 19,040 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2015 | Dec. 31, 2014 |
Preferred stock | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 39,314,189 | 39,247,689 |
Common stock, shares outstanding | 39,314,189 | 39,247,689 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Costs, expenses and other: | ||||
Exploration expense | $ 7 | $ 136 | $ 32 | $ 184 |
Depreciation and amortization | 2 | 5 | 5 | 8 |
General and administrative | 478 | 404 | 1,032 | 935 |
Gain on derivative instruments | $ (1) | (7) | $ (83) | (39) |
Property abandonment and impairment | 20 | 20 | ||
Interest income | $ (1) | (1) | $ (1) | (1) |
Total costs, expenses and other | 485 | 557 | 985 | 1,107 |
Other income (expense) | ||||
Gain on sale of marketable equity securities | 364 | $ 103 | 364 | $ 403 |
Gain on sale of other assets | 7 | 7 | ||
Gain (loss) on warrant liability | $ (28) | $ 41 | $ 21 | $ (219) |
Net loss of equity method investment | (28) | (153) | ||
Total other income (expense) | $ 343 | 116 | $ 392 | 31 |
Loss before income tax | $ (142) | (441) | $ (593) | $ (1,076) |
Income tax expense | (100) | |||
Net loss | $ (142) | (541) | $ (593) | $ (1,076) |
Less net loss attributable to noncontrolling interest | 1 | 2 | 2 | 5 |
Net loss attributable to Solitario shareholders | $ (141) | $ (539) | $ (591) | $ (1,071) |
Loss per common share attributable to Solitario shareholders: | ||||
Basic and diluted | $ 0 | $ (0.01) | $ (0.02) | $ (0.03) |
Weighted average shares outstanding: | ||||
Basic and diluted | 39,273 | 39,228 | 39,260 | 38,616 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Consolidated Statements Of Comprehensive Income Loss | ||||
Net loss attributable to Solitario shareholders, before other comprehensive loss | $ (142) | $ (541) | $ (593) | $ (1,076) |
Other comprehensive income (loss) | ||||
Unrealized loss on marketable equity securities, net of deferred taxes | (429) | (368) | (1,027) | (182) |
Comprehensive loss | (571) | (909) | (1,620) | (1,258) |
Loss attributable to noncontrolling interests | 1 | 2 | 2 | 5 |
Comprehensive loss attributable to Solitario shareholders | $ (570) | $ (907) | $ (1,618) | $ (1,253) |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Operating activities: | ||
Net loss | $ (593) | $ (1,076) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Unrealized gain on derivative instruments | (83) | (39) |
Depreciation and amortization | $ 5 | 8 |
Loss on equity method investment | 153 | |
(Gain) loss on warrant liability | $ (21) | 219 |
Employee stock option expense | 313 | $ 111 |
Accrued interest income | $ (2) | |
Property abandonment and impairment | $ (20) | |
Gain on equity security and asset sales | $ (371) | (403) |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other current assets | (9) | 85 |
Accounts payable and other current liabilities | 108 | (42) |
Net cash used in operating activities | (653) | (964) |
Investing activities: | ||
Additions to mineral properties | (763) | (999) |
Sale of derivative instruments | 84 | 36 |
Proceeds from sale of marketable equity securities | 519 | 473 |
Other assets, net | 8 | 10 |
Net cash used in investing activities | $ (152) | (480) |
Financing activities: | ||
Proceeds from issuance of common stock | 1,630 | |
Short-term borrowing (net) | (802) | |
Payment to noncontrolling interest | (250) | |
Net cash provided by financing activities | 578 | |
Net decrease in cash and cash equivalents | $ (805) | (866) |
Cash and cash equivalents, beginning of period | 869 | 2,092 |
Cash and cash equivalents, end of period | 64 | 1,226 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest, capitalized to mineral property | 133 | 96 |
Supplemental disclosure of non-cash activities: | ||
Capitalized non-cash interest | 206 | $ 206 |
Loan to non-controlling interest | $ 100 | |
Issuance of stock to noncontrolling interest | $ 76 | |
Issuance of stock for mineral property | $ 51 | 38 |
Issuance of stock to settle severance liability | $ 45 |
Business and Significant Accoun
Business and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Business and Significant Accounting Policies | 1. Business and Significant Accounting Policies Recent Developments On June 10, 2015 Solitario Exploration & Royalty Corp. (Solitario or the Company), along with DHI Minerals (U.S.) Ltd. (DHI), entered into a definitive agreement (the Agreement) to sell their combined interests in the Mt. Hamilton gold project (Mt. Hamilton) to Waterton Nevada Splitter, LLC, a wholly-owned subsidiary of Waterton Precious Metals Fund II Cayman, LP (collectively, Waterton), for total cash proceeds of US$30 million (the Transaction). Under the terms of the Transaction, Solitario will sell its 80% interest in Mt. Hamilton LLC (MH-LLC), a limited liability company which holds 100% of the Mt. Hamilton project assets, and DHI will sell its 20% interest in MH-LLC. DHI is a wholly-owned subsidiary of Ely Gold and Minerals, Inc. (Ely). As a result, on closing of the Transaction, Solitario would be entitled to gross cash proceeds of US$24 million and Ely would be entitled to gross cash proceeds of US$6 million. Costs and fees related to the Transaction, including any income taxes, broker fees and professional service fees, will reduce the net amount received by Solitario and DHI. The Transaction is structured as the sale of Solitarios and DHIs combined membership interests in MH-LLC. Completion of the Transaction is subject to the satisfaction of various conditions precedent, including the approval of the holders of a majority of Solitarios outstanding shares of common stock, as well as customary closing conditions, including regulatory approvals. Solitarios shareholder meeting is scheduled for August 14, 2015, with the closing of the Transaction, assuming it is approved by Solitario shareholders, and assuming all closing conditions of the Agreement are met, is expected to occur as soon as practical after Solitarios shareholder meeting. As explained in more detail in Note 5, Short-term Debt, Solitario entered into a facility agreement (the Facility Agreement) with RMB Australia Holdings Limited (RMBAH) and RMB Resources, Inc., a Delaware corporation (RMBR) whereby Solitario has borrowed $5,000,000 from RMBAH (with any amounts outstanding collectively being the RMB Loan). Concurrent with the execution of the Agreement, Waterton and Solitario entered into a letter agreement whereby Waterton has committed to provide Solitario, at Solitarios request, with a loan through a standby debt facility (the Standby Debt Facility) in an amount necessary to repay the RMB Loan due on September 30, 2015. If Solitario elects to enter into the facility, completion of the Standby Debt Facility is conditional on Solitario being in compliance with all terms of the Agreement, providing security over Solitarios assets which is substantially similar to the security provided under the Facility Agreement, and completion of necessary documentation. The indebtedness would be secured by Solitarios interest in MH-LLC as well as other corporate assets, have a six-month term and earn interest at 8% per annum. Waterton will also be entitled to a 2% structuring fee should Solitario exercise its right to enter into the Standby Debt Facility. On August 5, 2015, Solitario entered into an agreement with RMBAH to extend the maturity date of the RMB Loan from August 21, 2015 to September 30, 2015 (the RMB Loan Extension). In consideration for entering into the RMB Loan Extension, Solitario paid RMBAH an extension fee of $50,000 and agreed to extend the terms of warrants issued to RMBAH to acquire 1,624,748 shares of Solitario common stock from August 21, 2015 to August 21, 2016. All other terms of the Facility Agreement, the RMB Loan and warrants remained the same. Business and company formation Solitario is a development stage company at June 30, 2015 under Industry Guide 7, as issued by the United States Securities and Exchange Commission (SEC), with a recent focus on the Mt. Hamilton gold project located in Nevada. Solitario was incorporated in the state of Colorado on November 15, 1984 as a wholly-owned subsidiary of Crown Resources Corporation ("Crown"). In July 1994, Solitario became a publicly traded company on the Toronto Stock Exchange (the "TSX") through its Initial Public Offering. Solitario has been actively involved in mineral exploration since 1993. In December 2010 Solitario signed the Limited Liability Company Operating Agreement of Mt. Hamilton LLC (the MH Agreement) with DHI and formed MH-LLC, the owner of the Mt. Hamilton project. Prior to entering into the Agreement, Solitario was primarily focused on the development of the Mt. Hamilton project. However, Solitario has never developed a mineral property and the development of the Mt. Hamilton project would require a significant amount of outside capital. In addition to its activities at Mt. Hamilton, including the proposed Transaction, Solitario also acquires and holds a portfolio of exploration properties for future sale or joint venture or to create a royalty prior to the establishment of proven and probable reserves. However, if the proposed Transaction is approved by Solitario shareholders and the Transaction closes, Solitario intends to shift its primary focus from the development of the Mt. Hamilton project to the furtherance of its other assets and to Solitarios historical focus of the acquisition of precious and base metal properties with exploration potential and the development or purchase of royalty interests. However there can be no assurance that the Transaction will close. Solitario has recorded revenue in the past from the sale of mineral property and joint venture property payments and the sale of a royalty on its Mt. Hamilton property. Revenues from the sale or joint venture of properties have not been a significant source of revenue and would occur, if at all, on an infrequent basis in the future. The accompanying interim condensed consolidated financial statements of Solitario for the three and six months ended June 30, 2015 and 2014 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, 2015. These financial statements should be read in conjunction with the financial statements and notes thereto which are included in Solitarios Annual Report on Form 10-K for the year ended December 31, 2014. 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. Basis of Presentation The accompanying financial statements have been prepared assuming Solitario will continue as a going concern. As of June 30, 2015 Solitario has a working capital deficit of $4,182,000. The RMB Loan is due on September 30, 2015. Solitario currently does not have sufficient liquidity to repay the RMB Loan when due raising substantial doubt about its ability to continue as a going concern. Pursuant to the Agreement, if the Transaction closes, Solitario expects to use a portion of the funds from the Transaction to repay the RMB Loan. In the event the Transaction is delayed, Solitario may enter into negotiations for the Standby Debt Facility, however there can be no assurance that the Transaction will close or that funds will be available from Standby Debt Facility in time to repay RMB Loan. If the Transaction does not close and Solitario does not obtain adequate funds from the Standby Debt Facility there can be no assurance that Solitario will be able to raise sufficient outside funds on acceptable terms in order to repay the RMB Loan. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty. Under the terms of the RMB Loan, Solitario will be in default if it is unable to repay the RMB loan when it is due on September 30, 2015. Should Solitario be in default, RMBAH has, among other rights, the right to foreclose on its security interest in certain assets of Solitario to satisfy its obligation. Financial reporting The consolidated financial statements include the accounts of Solitario and its wholly-owned subsidiaries, controlled non-wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America ("generally accepted accounting principles"), and are expressed in US dollars. Revenue recognition Solitario records delay rental payments as revenue in the period received. Any payments received for the sale of property interests are recorded as a reduction of the related property's capitalized cost. Proceeds which exceed the capitalized cost of the property without reserves are recognized as revenue. Payments received on the sale of properties with reserves are recognized as revenue to the extent the proceeds exceed the proportionate basis in the assets sold. Gain on the sale of a mineral property revenue stream is deferred to the extent there is a guarantee for the future revenue stream until such time as the potential funding obligation for the guarantee is reduced or released. Use of estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Some of the more significant estimates included in the preparation of Solitario's financial statements pertain to: (i) the recoverability of mineral properties, with significant emphasis on Mt. Hamilton and the recoverability of its investment as well as the recoverability of mineral exploration properties and their future exploration potential; (ii) the fair value of Solitario's stock option grants to employees; (iii) the fair value of Solitario's investment in marketable equity securities; (iv) the fair value of Solitarios liability for warrants Solitario issued to RMBAH upon entering into the Facility Agreement In performing its activities, Solitario has incurred certain costs for mineral properties. The recovery of these costs is ultimately dependent upon the sale of mineral property interests or the development of economically recoverable ore reserves and the ability of Solitario to obtain the necessary permits and financing to successfully place the properties into production, and upon future profitable operations, none of which is assured. Cash equivalents Cash equivalents include investments in highly liquid money-market securities with original maturities of three months or less when purchased. Mineral properties Solitario expenses all exploration costs incurred on its mineral properties prior to the establishment of proven and probable reserves through the completion of a feasibility study. Initial acquisition costs of its mineral properties are capitalized. Solitario began capitalizing all of its development expenditures on its Mt. Hamilton project, subsequent to the completion of a feasibility study in 2012. Solitario regularly performs evaluations of its investment in mineral properties to assess the recoverability and/or the residual value of its investments in these assets. All long-lived assets are reviewed for impairment whenever events or circumstances change which indicate the carrying amount of an asset may not be recoverable, utilizing established guidelines based upon undiscounted future net cash flows from the asset or upon the determination that certain exploration properties do not have sufficient potential for economic mineralization. Derivative instruments Solitario accounts for its derivative instruments in accordance with ASC 815 "Accounting for Derivative Instruments and Hedging Activities" (ASC 815). Fair value FASB ASC 820, Fair Value Measurements and Disclosures (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. For certain of Solitario's financial instruments, including cash and cash equivalents, short-term margin loans and accounts payable, the carrying amounts approximate fair value due to their short-term maturities. Solitario's marketable equity securities and the Kinross Gold Corporation (Kinross) calls are carried at their estimated fair value based on quoted market prices. See Note 7, Fair Value below. 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. Solitario records investments in marketable equity securities as available-for-sale for investments in publicly traded marketable equity securities for which it does not exercise significant control and where Solitario has no representation on the Board of Directors of those companies and exercises no control over the management of those companies. The cost of marketable equity securities sold is determined by the specific identification method. Changes fair values are recorded in accumulated other comprehensive income within shareholders' equity, unless a decline in fair value is considered other than temporary, in which case the decline is recognized as a loss in the consolidated statements of operations. Foreign exchange The United States dollar is the functional currency for all of Solitario's foreign subsidiaries. Although Solitario's South American exploration activities have been conducted primarily in Brazil, Peru and Mexico, a portion of the payments under the land, leasehold and exploration agreements of Solitario are denominated in United States dollars. Foreign currency gains and losses are included in the results of operations in the period in which they occur. 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. Accounting for uncertainty in income taxes ASC 740 clarifies the accounting for uncertainty in income taxes recognized in a company's financial statements. ASC 740 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. ASC 740 provides that a company's tax position will be considered settled if the taxing authority has completed its examination, the company does not plan to appeal, and it is remote that the taxing authority would reexamine the tax position in the future. These provisions of ASC 740 had no effect on Solitario's financial position or results of operations. See Note 8, Income Taxes below. Earnings per share The calculation of basic and diluted loss per share is based on the weighted average number of shares of common stock outstanding during the three and six months ended June 20, 2015 and 2014. Potentially dilutive shares related to outstanding common stock options of 3,748,000 and 1,758,000 for the three and six months June 30, 2015 and 2014, respectively, and warrants issued to RMBAH to acquire 1,624,748 shares of common stock for the three and six months ended June 31, 2015 and 2014 were excluded from the calculation of diluted loss per share because the effects were anti-dilutive. Employee stock compensation and incentive plans Solitario classifies all of its stock options as equity options in accordance with the provisions of ASC 718 Compensation Stock Compensation. Recent accounting pronouncements In August 2014, the FASB issued ASU 2014-15, Presentation of Financial StatementsGoing Concern: Disclosure of Uncertainties about an Entitys Ability to Continue as a Going Concern |
Mineral Property
Mineral Property | 6 Months Ended |
Jun. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Mineral Property | 2. Mineral Property The following table details Solitarios investment in Mineral Property: (in thousands) June 30, December 31, 2015 2014 Development (United States) Mt. Hamilton $15,666 $14,641 Exploration La Promesa (Peru) 5 5 Norcan (Mexico) 6 6 Aconchi (Mexico) 5 5 Canta Colorado (Peru) 3 3 Total exploration 19 19 Total mineral property $15,685 $14,660 Mt. Hamilton On February 22, 2012, Solitario earned an 80% interest in MH-LLC as a result of the completion of a feasibility study on the Mt. Hamilton project (the Feasibility Study) prepared by SRK Consulting (US), Inc. of Lakewood, Colorado (SRK). In October 2014, SRK, on behalf of Solitario completed an updated feasibility study on the Mt. Hamilton project (the Updated Feasibility Study). Solitario intends to monetize its interest in the Mt. Hamilton project, either through the Transaction or, if the Transaction does not close, through the sale of all or part of its interest in the project to another party, through another form of strategic transaction or relationship, or potentially through development of the project. Development of the project is subject to a number of factors including obtaining all 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. Capitalization of costs for the three and six months ended June 30, 2015 and 2014 is detailed in the following table: (in thousands) Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 Development expenditures $335 $ 355 $491 $ 840 Capitalized interest 170 149 339 302 Property payments 190 100 190 100 Capitalized depreciation 3 8 5 16 Total capitalized costs $ 698 $ 612 $ 1,025 $ 1,258 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 did not record any mineral property write-downs during the three and six months ended June 30, 2015. 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 second quarter of 2015, Solitario terminated its joint venture with Anglo Platinum Ltd., (Anglo) on Pedra Branca Mineracao, Ltd. (PBM), the owner of the Pedra Branca project in Brazil. Solitario had accounted for its interest in PBM on the equity method and had no remaining recorded value in PBM as of December 31, 2014 and June 30, 2015. Solitario retains a 1% royalty on the Pedra Branca project, for which Solitario has no other ownership interest. Solitario has no capital cost recorded with regard to Pedra Branca as of June 30, 2015 or December 31, 2014. Exploration expense The following items comprised exploration expense: (in thousands) Three months ended Six months ended 2015 2014 2015 2014 Geologic and field expenses $(3) $112 $15 $138 Administrative 10 24 17 46 Total exploration costs $ 7 $ 136 $ 32 $ 184 During the three months ended June 30, 2015, Solitario received a refund of $19,000 for previously paid value added taxes in Peru, related to prior year exploration, which accounted for the net credit in geologic and field expenses during that period. No similar amounts were received in prior years. |
Marketable Equity Securities
Marketable Equity Securities | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Marketable Equity Securities | 3. 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 or loss 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 Solitarios marketable equity securities and accumulated other comprehensive income related to its marketable equity securities: (in thousands) June 30, 2015 December 31, 2014 Marketable equity securities at fair value $1,125 $2,308 Cost 1,713 1,869 Accumulated other comprehensive (loss) income for (588) 439 Deferred taxes on accumulated other comprehensive (1,559) (1,559) Accumulated other comprehensive loss $(2,147) $(1,120) The following table represents changes in marketable equity securities. (in thousands) Three months ended Six months ended 2015 2014 2015 2014 Gross cash proceeds $ 519 $123 $ 519 $473 Cost 155 20 155 70 Gross gain on sale included in earnings during the period 364 103 364 403 Deferred taxes on gross gain on sale included in earnings (126) (35) (126) (140) Valuation allowance on deferred taxes on gross gain on sale included in earnings 126 35 126 140 Reclassification adjustment to unrealized gain in other (364) (103) (364) (403) Gross unrealized holding (loss) gain arising during the period (65) (365) (663) 221 Deferred taxes on unrealized holding (loss) gain included in 23 (128) 230 (76) Valuation allowance on deferred taxes on unrealized holding losses included in other comprehensive loss (23) 28 (230) 76 Net unrealized holding (loss) gain (65) (265) (663) 221 Other comprehensive loss from marketable equity securities $(429) $(368) $(1,027) $(182) |
Other Assets
Other Assets | 6 Months Ended |
Jun. 30, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | 4. Other Assets The following items comprised other assets: (in thousands) June 30, December 31, 2015 2014 Deferred offering costs RMB Loan $ 28 $126 Accumulated Mt. Hamilton advance royalty payments 900 900 Furniture and Fixtures, net of accumulated depreciation 53 63 Loan to non-controlling interest 102 - Exploration bonds and other assets 73 74 Total other assets $ 1,156 $ 1,163 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, Short-term debt, below. As part of the MH-Agreement, DHI elected to have Solitario fund DHIs portion of ongoing costs at Mt. Hamilton through a loan to DHI with an interest rate of 8% (the DHI Loan). The DHI Loan is payable from 80% of DHIs share of cash distributions from MH-LLC or from DHI share of proceeds from the Transaction. During the three and six months ended June 30, 2015, Solitario advanced $100,000 as a noncontrolling interest contribution in the equity section of the balance sheet and Solitario recorded $2,000 of interest income on the DHI Loan. The DHI loan is recorded as other assets at June 30, 2015. |
Short Term Debt
Short Term Debt | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Short Term Debt | 5. Short-term Debt RMB Facility Agreement On August 10, 2012, Solitario entered into the Facility Agreement and has borrowed $5,000,000 from RMBAH under the RMB Loan. In connection with the Facility Agreement, Solitario recorded a warrant discount related to the RMB Warrants (defined below). Solitario also recorded deferred offering costs related to the RMB Loan. The warrant discount and deferred offering costs are being amortized on a straight-line basis to interest cost over 36 months, the term of the Facility Agreement. Subsequent to June 30, 2015, in connection with the RMB Loan Extension discussed above, the RMB Loan is due on September 30, 2015. 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 5.28% at June 30, 2015. 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 Solitarios 80% interest in MH-LLC as well as a general security interest in Solitarios 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, 2014 $ 5,000 $(139) $4,861 Amortization of discount to interest cost - 108 108 Ending balance June 30, 2015 $5,000 $(31) 4,969 UBS Short-term credit line 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 Solitarios assets held in its UBS brokerage account. The UBS secured line of credit of $802,000 was paid off during the six months ended June 30, 2014. Solitario recorded the following interest cost related to outstanding short-term debt: (in thousands) Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 RMB Loan interest Interest paid in cash $ 67 $ 46 $ 133 $ 96 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 170 149 339 302 UBS secured credit line - - - 4 Total $170 $149 $339 $306 During the three and six months ended June 30, 2015 and 2014, Solitario capitalized all of its interest to mineral property. See Note 2, Mineral property, above. |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2015 | |
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. As amended, the RMB Warrants expire on August 21, 2016, and have an exercise price of $1.5387 per share, subject to customary anti-dilution adjustments. Solitario recorded a warrant discount at the time it entered into the Facility Agreement, which it is amortizing on a straight-line basis. See Note 5, short-term debt, above. Solitario has recorded a liability as of June 30, 2015 and December 31, 2014 of $34,000 and $55,000, 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 a loss of $28,000 and a gain of $21,000, respectively, on the RMB Warrants during the three and six months ended June 30, 2015 and a gain of $41,000 and a loss of $219,000, respectively, on the RMB Warrants during the three and six months ended June 30, 2014. 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 liquidity 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. 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. Solitario recorded the following gain loss on derivative instruments related to Kinross calls: (in thousands) Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 Gain on derivative instrument 1 7 83 36 |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 7. Fair value For certain of Solitarios financial instruments, including cash and cash equivalents, payables and short-term debt, the carrying amounts approximate fair value due to their short term maturities. Solitarios marketable equity securities are carried at their estimated fair value primarily based on quoted market prices. 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 · Level 2 · Level 3 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 31, 2015 there were no reclassifications in financial assets or liabilities between Level 1, 2 or 3 categories. The following is a listing of Solitarios 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, 2015: (in thousands) Level 1 Level 2 Level 3 Total Assets Marketable equity securities $1,125 $ - $ - $1,125 Liabilities Kinross calls 1 - - 1 RMB warrants - 34 - 34 The following is a listing of Solitarios 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, 2014: (in thousands) Level 1 Level 2 Level 3 Total Assets Marketable equity securities $2,308 $ - $ - $2,308 Liabilities RMB warrants - 55 - 55 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2015 | |
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, 2015 and December 31, 2014, primarily as a result of the its net operating loss carry-forwards exceeding the any accumulated deferred tax liabilities, Solitario has recorded a valuation allowance equal to its net deferred tax assets.. During the three and six months ended June 30, 2015, and during the six months ended June 30, 2014, Solitario recorded no deferred tax benefit as result of the valuation allowance discussed above. During the three months ended June 30, 2014, Solitario recorded a $100,000 deferred tax expense in the statement of operations related to the reversal of a prior recorded deferred tax benefit, as Solitario no longer expected to have gains in other comprehensive income and was recording a valuation allowance against that prior recorded deferred tax benefit. |
Employee Stock Compensation Pla
Employee Stock Compensation Plans | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employee Stock Compensation Plans | 9. Employee stock compensation plans Solitarios 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, 2015 Solitario recorded $157,000 and $313,000, 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, 2014 Solitario recorded $55,000 and $111,000, 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 Solitarios 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 Solitarios common stock at the date of grant. There were no new options granted during the three and six months ended June 30, 2015 and 2014 under the 2006 Plan. No options were exercised during the three and six months ended June 30, 2015 or 2014. The 2013 Plan On June 18, 2013 Solitarios 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. There were no stock awards or exercises of options under the 2013 Plan during the three and six months ended June 30, 2015. During the three months ended June 30, 2014, there were no stock awards or exercises of options under the 2013 Plan. 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. There were no exercises of options under the 2013 Plan during the six months ended June 30, 2014. |
Shareholders Equity, Comprehens
Shareholders Equity, Comprehensive Loss, and Noncontrolling Interest | 6 Months Ended |
Jun. 30, 2015 | |
Equity: | |
Shareholders Equity, Comprehensive Loss, and Noncontrolling Interest | 10. 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 Loss Equity Interest Equity Balance at December 31, 2014 39,247,689 $393 $54,512 $(46,563) $(1,120) $7,222 $(441) $6,781 Stock option expense - - 157 - - 157 - 157 Net loss - - - (450) - (450) (1) (451) Net unrealized loss on marketable equity securities - - - - (598) (598) - (598) Balance at March 31, 2015 39,247,689 $393 $54,669 $(47,013) $(1,718) $6,331 $(442) $5,889 Issuance of shares for mineral property 66,500 - 51 - - 51 - 51 Stock option expense - - 156 - - 156 - 156 Noncontrolling interest contribution - - - - - - 100 100 Net loss - - - (141) - (141) (1) (142) Net realized and unrealized loss on marketable equity securities - - - - (429) (429) - (429) Balance at June 30, 2015 39,314,189 $393 $54,876 $(47,154) $(2,147) $5,968 $(343) $5,625 |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting | 11. 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, 2015 and 2014: (in thousands) Three months ended June 30, Mt Hamilton Exploration Corporate and Other Consolidated 2015 2014 2015 2014 2015 2014 2015 2014 Exploration expense $ - $ - $ 7 $136 $ - $ - $ 7 $136 Interest expense (2) - - - - - - - - Other loss (1)(3) 4 50 131 255 135 305 Pre-tax loss $ - $ - $11 $186 $131 $255 $142 $441 (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 2015 2014 2015 2014 2015 2014 2015 2014 Exploration expense $ - $ - $32 $184 $ - $ - $ 32 $184 Interest expense (2) - - - - - - - - Other loss (1)(3) - - 14 185 547 707 561 892 Pre-tax loss $ - $ - $46 $369 $547 $707 $593 $1,076 Total assets (4)(5) $16,651 $15,121 $80 $316 $1,348 $3,813 $18,079 $19,250 Capital Expenditures (2) $ 1,024 $ 1,258 $ - $ - $ - $ - $ 1,024 $ 1,258 (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 Acco18
Business and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
1. Business and Significant Accounting Policies | 1. Business and Significant Accounting Policies Recent Developments On June 10, 2015 Solitario Exploration & Royalty Corp. (Solitario or the Company), along with DHI Minerals (U.S.) Ltd. (DHI), entered into a definitive agreement (the Agreement) to sell their combined interests in the Mt. Hamilton gold project (Mt. Hamilton) to Waterton Nevada Splitter, LLC, a wholly-owned subsidiary of Waterton Precious Metals Fund II Cayman, LP (collectively, Waterton), for total cash proceeds of US$30 million (the Transaction). Under the terms of the Transaction, Solitario will sell its 80% interest in Mt. Hamilton LLC (MH-LLC), a limited liability company which holds 100% of the Mt. Hamilton project assets, and DHI will sell its 20% interest in MH-LLC. DHI is a wholly-owned subsidiary of Ely Gold and Minerals, Inc. (Ely). As a result, on closing of the Transaction, Solitario would be entitled to gross cash proceeds of US$24 million and Ely would be entitled to gross cash proceeds of US$6 million. Costs and fees related to the Transaction, including any income taxes, broker fees and professional service fees, will reduce the net amount received by Solitario and DHI. The Transaction is structured as the sale of Solitarios and DHIs combined membership interests in MH-LLC. Completion of the Transaction is subject to the satisfaction of various conditions precedent, including the approval of the holders of a majority of Solitarios outstanding shares of common stock, as well as customary closing conditions, including regulatory approvals. Solitarios shareholder meeting is scheduled for August 14, 2015, with the closing of the Transaction, assuming it is approved by Solitario shareholders, and assuming all closing conditions of the Agreement are met, is expected to occur as soon as practical after Solitarios shareholder meeting. As explained in more detail in Note 5, Short-term Debt, Solitario entered into a facility agreement (the Facility Agreement) with RMB Australia Holdings Limited (RMBAH) and RMB Resources, Inc., a Delaware corporation (RMBR) whereby Solitario has borrowed $5,000,000 from RMBAH (with any amounts outstanding collectively being the RMB Loan). Concurrent with the execution of the Agreement, Waterton and Solitario entered into a letter agreement whereby Waterton has committed to provide Solitario, at Solitarios request, with a loan through a standby debt facility (the Standby Debt Facility) in an amount necessary to repay the RMB Loan due on September 30, 2015. If Solitario elects to enter into the facility, completion of the Standby Debt Facility is conditional on Solitario being in compliance with all terms of the Agreement, providing security over Solitarios assets which is substantially similar to the security provided under the Facility Agreement, and completion of necessary documentation. The indebtedness would be secured by Solitarios interest in MH-LLC as well as other corporate assets, have a six-month term and earn interest at 8% per annum. Waterton will also be entitled to a 2% structuring fee should Solitario exercise its right to enter into the Standby Debt Facility. On August 5, 2015, Solitario entered into an agreement with RMBAH to extend the maturity date of the RMB Loan from August 21, 2015 to September 30, 2015 (the RMB Loan Extension). In consideration for entering into the RMB Loan Extension, Solitario paid RMBAH an extension fee of $50,000 and agreed to extend the terms of warrants issued to RMBAH to acquire 1,624,748 shares of Solitario common stock from August 21, 2015 to August 21, 2016. All other terms of the Facility Agreement, the RMB Loan and warrants remained the same. Business and company formation Solitario is a development stage company at June 30, 2015 under Industry Guide 7, as issued by the United States Securities and Exchange Commission (SEC), with a recent focus on the Mt. Hamilton gold project located in Nevada. Solitario was incorporated in the state of Colorado on November 15, 1984 as a wholly-owned subsidiary of Crown Resources Corporation ("Crown"). In July 1994, Solitario became a publicly traded company on the Toronto Stock Exchange (the "TSX") through its Initial Public Offering. Solitario has been actively involved in mineral exploration since 1993. In December 2010 Solitario signed the Limited Liability Company Operating Agreement of Mt. Hamilton LLC (the MH Agreement) with DHI and formed MH-LLC, the owner of the Mt. Hamilton project. Prior to entering into the Agreement, Solitario was primarily focused on the development of the Mt. Hamilton project. However, Solitario has never developed a mineral property and the development of the Mt. Hamilton project would require a significant amount of outside capital. In addition to its activities at Mt. Hamilton, including the proposed Transaction, Solitario also acquires and holds a portfolio of exploration properties for future sale or joint venture or to create a royalty prior to the establishment of proven and probable reserves. However, if the proposed Transaction is approved by Solitario shareholders and the Transaction closes, Solitario intends to shift its primary focus from the development of the Mt. Hamilton project to the furtherance of its other assets and to Solitarios historical focus of the acquisition of precious and base metal properties with exploration potential and the development or purchase of royalty interests. However there can be no assurance that the Transaction will close. Solitario has recorded revenue in the past from the sale of mineral property and joint venture property payments and the sale of a royalty on its Mt. Hamilton property. Revenues from the sale or joint venture of properties have not been a significant source of revenue and would occur, if at all, on an infrequent basis in the future. The accompanying interim condensed consolidated financial statements of Solitario for the three and six months ended June 30, 2015 and 2014 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, 2015. These financial statements should be read in conjunction with the financial statements and notes thereto which are included in Solitarios Annual Report on Form 10-K for the year ended December 31, 2014. 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. Basis of Presentation The accompanying financial statements have been prepared assuming Solitario will continue as a going concern. As of June 30, 2015 Solitario has a working capital deficit of $4,182,000. The RMB Loan is due on September 30, 2015. Solitario currently does not have sufficient liquidity to repay the RMB Loan when due raising substantial doubt about its ability to continue as a going concern. Pursuant to the Agreement, if the Transaction closes, Solitario expects to use a portion of the funds from the Transaction to repay the RMB Loan. In the event the Transaction is delayed, Solitario may enter into negotiations for the Standby Debt Facility, however there can be no assurance that the Transaction will close or that funds will be available from Standby Debt Facility in time to repay RMB Loan. If the Transaction does not close and Solitario does not obtain adequate funds from the Standby Debt Facility there can be no assurance that Solitario will be able to raise sufficient outside funds on acceptable terms in order to repay the RMB Loan. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty. Under the terms of the RMB Loan, Solitario will be in default if it is unable to repay the RMB loan when it is due on September 30, 2015. Should Solitario be in default, RMBAH has, among other rights, the right to foreclose on its security interest in certain assets of Solitario to satisfy its obligation. Financial reporting The consolidated financial statements include the accounts of Solitario and its wholly-owned subsidiaries, controlled non-wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America ("generally accepted accounting principles"), and are expressed in US dollars. Revenue recognition Solitario records delay rental payments as revenue in the period received. Any payments received for the sale of property interests are recorded as a reduction of the related property's capitalized cost. Proceeds which exceed the capitalized cost of the property without reserves are recognized as revenue. Payments received on the sale of properties with reserves are recognized as revenue to the extent the proceeds exceed the proportionate basis in the assets sold. Gain on the sale of a mineral property revenue stream is deferred to the extent there is a guarantee for the future revenue stream until such time as the potential funding obligation for the guarantee is reduced or released. Use of estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Some of the more significant estimates included in the preparation of Solitario's financial statements pertain to: (i) the recoverability of mineral properties, with significant emphasis on Mt. Hamilton and the recoverability of its investment as well as the recoverability of mineral exploration properties and their future exploration potential; (ii) the fair value of Solitario's stock option grants to employees; (iii) the fair value of Solitario's investment in marketable equity securities; (iv) the fair value of Solitarios liability for warrants Solitario issued to RMBAH upon entering into the Facility Agreement In performing its activities, Solitario has incurred certain costs for mineral properties. The recovery of these costs is ultimately dependent upon the sale of mineral property interests or the development of economically recoverable ore reserves and the ability of Solitario to obtain the necessary permits and financing to successfully place the properties into production, and upon future profitable operations, none of which is assured. Cash equivalents Cash equivalents include investments in highly liquid money-market securities with original maturities of three months or less when purchased. Mineral properties Solitario expenses all exploration costs incurred on its mineral properties prior to the establishment of proven and probable reserves through the completion of a feasibility study. Initial acquisition costs of its mineral properties are capitalized. Solitario began capitalizing all of its development expenditures on its Mt. Hamilton project, subsequent to the completion of a feasibility study in 2012. Solitario regularly performs evaluations of its investment in mineral properties to assess the recoverability and/or the residual value of its investments in these assets. All long-lived assets are reviewed for impairment whenever events or circumstances change which indicate the carrying amount of an asset may not be recoverable, utilizing established guidelines based upon undiscounted future net cash flows from the asset or upon the determination that certain exploration properties do not have sufficient potential for economic mineralization. Derivative instruments Solitario accounts for its derivative instruments in accordance with ASC 815 "Accounting for Derivative Instruments and Hedging Activities" (ASC 815). Fair value FASB ASC 820, Fair Value Measurements and Disclosures (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. For certain of Solitario's financial instruments, including cash and cash equivalents, short-term margin loans and accounts payable, the carrying amounts approximate fair value due to their short-term maturities. Solitario's marketable equity securities and the Kinross Gold Corporation (Kinross) calls are carried at their estimated fair value based on quoted market prices. See Note 7, Fair Value below. 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. Solitario records investments in marketable equity securities as available-for-sale for investments in publicly traded marketable equity securities for which it does not exercise significant control and where Solitario has no representation on the Board of Directors of those companies and exercises no control over the management of those companies. The cost of marketable equity securities sold is determined by the specific identification method. Changes fair values are recorded in accumulated other comprehensive income within shareholders' equity, unless a decline in fair value is considered other than temporary, in which case the decline is recognized as a loss in the consolidated statements of operations. Foreign exchange The United States dollar is the functional currency for all of Solitario's foreign subsidiaries. Although Solitario's South American exploration activities have been conducted primarily in Brazil, Peru and Mexico, a portion of the payments under the land, leasehold and exploration agreements of Solitario are denominated in United States dollars. Foreign currency gains and losses are included in the results of operations in the period in which they occur. 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. Accounting for uncertainty in income taxes ASC 740 clarifies the accounting for uncertainty in income taxes recognized in a company's financial statements. ASC 740 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. ASC 740 provides that a company's tax position will be considered settled if the taxing authority has completed its examination, the company does not plan to appeal, and it is remote that the taxing authority would reexamine the tax position in the future. These provisions of ASC 740 had no effect on Solitario's financial position or results of operations. See Note 8, Income Taxes below. Earnings per share The calculation of basic and diluted loss per share is based on the weighted average number of shares of common stock outstanding during the three and six months ended June 20, 2015 and 2014. Potentially dilutive shares related to outstanding common stock options of 3,748,000 and 1,758,000 for the three and six months June 30, 2015 and 2014, respectively, and warrants issued to RMBAH to acquire 1,624,748 shares of common stock for the three and six months ended June 31, 2015 and 2014 were excluded from the calculation of diluted loss per share because the effects were anti-dilutive. Employee stock compensation and incentive plans Solitario classifies all of its stock options as equity options in accordance with the provisions of ASC 718 Compensation Stock Compensation. Recent accounting pronouncements In August 2014, the FASB issued ASU 2014-15, Presentation of Financial StatementsGoing Concern: Disclosure of Uncertainties about an Entitys Ability to Continue as a Going Concern |
Mineral Property (Tables)
Mineral Property (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Investment In Mineral Property | (in thousands) June 30, December 31, 2015 2014 Development (United States) Mt. Hamilton $15,666 $14,641 Exploration La Promesa (Peru) 5 5 Norcan (Mexico) 6 6 Aconchi (Mexico) 5 5 Canta Colorado (Peru) 3 3 Total exploration 19 19 Total mineral property $15,685 $14,660 |
Capitalized Development Costs | (in thousands) Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 Development expenditures $335 $ 355 $491 $ 840 Capitalized interest 170 149 339 302 Property payments 190 100 190 100 Capitalized depreciation 3 8 5 16 Total capitalized costs $ 698 $ 612 $ 1,025 $ 1,258 |
Exploration Expense | (in thousands) Three months ended Six months ended 2015 2014 2015 2014 Geologic and field expenses $(3) $112 $15 $138 Administrative 10 24 17 46 Total exploration costs $ 7 $ 136 $ 32 $ 184 |
Marketable Equity Securities (T
Marketable Equity Securities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Marketable Equity Securities and Accumulated Other Comprehensive Income | (in thousands) June 30, 2015 December 31, 2014 Marketable equity securities at fair value $1,125 $2,308 Cost 1,713 1,869 Accumulated other comprehensive (loss) income for (588) 439 Deferred taxes on accumulated other comprehensive (1,559) (1,559) Accumulated other comprehensive loss $(2,147) $(1,120) |
Changes in Marketable Securities | (in thousands) Three months ended Six months ended 2015 2014 2015 2014 Gross cash proceeds $ 519 $123 $ 519 $473 Cost 155 20 155 70 Gross gain on sale included in earnings during the period 364 103 364 403 Deferred taxes on gross gain on sale included in earnings (126) (35) (126) (140) Valuation allowance on deferred taxes on gross gain on sale included in earnings 126 35 126 140 Reclassification adjustment to unrealized gain in other (364) (103) (364) (403) Gross unrealized holding (loss) gain arising during the period (65) (365) (663) 221 Deferred taxes on unrealized holding (loss) gain included in 23 (128) 230 (76) Valuation allowance on deferred taxes on unrealized holding losses included in other comprehensive loss (23) 28 (230) 76 Net unrealized holding (loss) gain (65) (265) (663) 221 Other comprehensive loss from marketable equity securities $(429) $(368) $(1,027) $(182) |
Other Assets (Tables)
Other Assets (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | (in thousands) June 30, December 31, 2015 2014 Deferred offering costs RMB Loan $ 28 $126 Accumulated Mt. Hamilton advance royalty payments 900 900 Furniture and Fixtures, net of accumulated depreciation 53 63 Loan to non-controlling interest 102 - Exploration bonds and other assets 73 74 Total other assets $ 1,156 $ 1,163 |
Short Term Debt (Tables)
Short Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Summary of Short Term Debt | RMB RMB RMB (in thousands) Loan borrowing Warrant discount Long-term Debt Beginning balance December 31, 2014 $ 5,000 $(139) $4,861 Amortization of discount to interest cost - 108 108 Ending balance June 30, 2015 $5,000 $(31) 4,969 |
Short Term Debt Interest | (in thousands) Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 RMB Loan interest Interest paid in cash $ 67 $ 46 $ 133 $ 96 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 170 149 339 302 UBS secured credit line - - - 4 Total $170 $149 $339 $306 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Gain Loss on Derivative Instruments | (in thousands) Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 Gain on derivative instrument 1 7 83 36 |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Financial Assets and Liabilities | (in thousands) Level 1 Level 2 Level 3 Total Assets Marketable equity securities $1,125 $ - $- $1,125 Liabilities Kinross calls 1 34 - 34 The following is a listing of Solitarios 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, 2014: (in thousands) Level 1 Level 2 Level 3 Total Assets Marketable equity securities $2,308 $ - $ - $2,308 Liabilities RMB warrants - 55 - 55 |
Shareholders Equity, Comprehe25
Shareholders Equity, Comprehensive Loss, and Noncontrolling Interest (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 Loss Equity Interest Equity Balance at December 31, 2014 39,247,689 $393 $54,512 $(46,563) $(1,120) $7,222 $(441) $6,781 Stock option expense - - 157 - - 157 - 157 Net loss - - - (450) - (450) (1) (451) Net unrealized loss on marketable equity securities - - - - (598) (598) - (598) Balance at March 31, 2015 39,247,689 $393 $54,669 $(47,013) $(1,718) $6,331 $(442) $5,889 Issuance of shares for mineral property 66,500 - 51 - - 51 - 51 Stock option expense - - 156 - - 156 - 156 Noncontrolling interest contribution - - - - - - 100 100 Net loss - - - (141) - (141) (1) (142) Net realized and unrealized loss on marketable equity securities - - - - (429) (429) - (429) Balance at June 30, 2015 39,314,189 $393 $54,876 $(47,154) $(2,147) $5,968 $(343) $5,625 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting | (in thousands) Three months ended June 30, Mt Hamilton Exploration Corporate and Other Consolidated 2015 2014 2015 2014 2015 2014 2015 2014 Exploration expense $ - $ - $ 7 $136 $ - $ - $ 7 $136 Interest expense (2) - - - - - - - - Other loss (1)(3) 4 50 131 255 135 305 Pre-tax loss $ - $ - $11 $186 $131 $255 $142 $441 (in thousands) Six months ended June 30, Mt Hamilton Exploration Corporate and Other Consolidated 2015 2014 2015 2014 2015 2014 2015 2014 Exploration expense $ - $ - $32 $184 $ - $ - $ 32 $184 Interest expense (2) - - - - - - - - Other loss (1)(3) - - 14 185 547 707 561 892 Pre-tax loss $ - $ - $46 $369 $547 $707 $593 $1,076 Total assets (4)(5) $16,651 $15,121 $80 $316 $1,348 $3,813 $18,079 $19,250 Capital Expenditures (2) $ 1,024 $ 1,258 $ - $ - $ - $ - $ 1,024 $ 1,258 |
Business and Significant Acco27
Business and Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Sep. 30, 2015 | Aug. 05, 2015 | Jun. 10, 2015 | |
Accounting Policies [Abstract] | |||||||
Cash proceeds definitive agreement with Waterton | $ 30,000 | ||||||
Interest in MHLLC to be sold | 80.00% | ||||||
MH project assets held by MHLLC | 100.00% | ||||||
SERC portion of total proceeds from sale | $ 24,000 | ||||||
Ely Gold portion of proceeds from sale | $ 6,000 | ||||||
Interest per annum on Standby Debt Facility | 8.00% | ||||||
Structuring fee due Waterton if SERC enters Standby Debt Facility | 2.00% | ||||||
Working capital deficit | $ 4,182 | $ 4,182 | |||||
Potentially dilutive shares related to stock options | 3,748,000 | 1,758,000 | 3,748,000 | 1,758,000 | |||
Warrants issued to RMBAH excluded from calculation of diluted loss | 1,624,748 | 1,624,748 | 1,624,748 | 1,624,748 | |||
Due to RMBAH | $ 5,000 | ||||||
Fee for agreement to extend RMB loan maturity | $ 50 |
Mineral Property - Investment i
Mineral Property - Investment in Mineral Property (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Total mineral property | $ 15,685 | $ 14,660 |
Mt. Hamilton | ||
Development (United States) | 15,666 | 14,641 |
La Promesa Peru | ||
Exploration | 5 | 5 |
Norcan Mexico | ||
Exploration | 6 | 6 |
Aconchi Mexico | ||
Exploration | 5 | 5 |
Canta Colorado Peru | ||
Exploration | $ 3 | $ 3 |
Mineral Property - Capitalized
Mineral Property - Capitalized Development Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Property, Plant and Equipment [Abstract] | ||||
Development expenditures | $ 335 | $ 355 | $ 491 | $ 840 |
Capitalized interest | 170 | 149 | 339 | 302 |
Property payments | 190 | 100 | 190 | 100 |
Capitalized depreciation | 3 | 8 | 5 | 16 |
Total capitalized costs | $ 698 | $ 612 | $ 1,025 | $ 1,258 |
Mineral Property - Exploration
Mineral Property - Exploration Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Property, Plant and Equipment [Abstract] | ||||
Geologic and field expenses | $ (3) | $ 112 | $ 15 | $ 138 |
Administrative | 10 | 24 | 17 | 46 |
Total exploration costs | $ 7 | $ 136 | $ 32 | $ 184 |
Mineral Property (Details Narra
Mineral Property (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2014 | Feb. 22, 2012 | |
Property, Plant and Equipment [Abstract] | ||||
Interest earned in MHLLC | 80.00% | |||
Mineral property write-downs | $ 20 | $ 20 | ||
Refund for previously paid value added tax in Peru | $ 19 |
Marketable Equity Securities -
Marketable Equity Securities - Marketable Equity Securities and Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Accounting Policies [Abstract] | ||
Marketable equity securities at fair value | $ 1,125 | $ 2,308 |
Cost | 1,713 | 1,869 |
Accumulated other comprehensive (loss) income for unrealized holding gains | (588) | 439 |
Deferred taxes on accumulated other comprehensive income for unrealized holding gains | (1,559) | (1,559) |
Accumulated other comprehensive loss | $ (2,147) | $ (1,120) |
Marketable Equity Securities 33
Marketable Equity Securities - Changes in Marketable Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Accounting Policies [Abstract] | ||||
Gross cash proceeds | $ 519 | $ 123 | $ 519 | $ 473 |
Cost | 155 | 20 | 155 | 70 |
Gross gain on sale included in earnings during the period | 364 | 103 | 364 | 403 |
Deferred taxes on gross gain on sale included in earnings | (126) | (35) | (126) | (140) |
Valuation allowance on deferred taxes on gross gain on sale included in earnings | 126 | 35 | 126 | 140 |
Reclassification adjustment to unrealized gain in other comprehensive income for net gains included in earnings | (364) | (103) | (364) | (403) |
Gross unrealized holding (loss) gain arising during the period included in other comprehensive loss | (65) | (365) | (663) | 221 |
Deferred taxes on unrealized holding (loss) gain included in other comprehensive loss | 23 | (128) | 230 | (76) |
Valuation allowance on deferred taxes on unrealized holding losses included in other comprehensive loss | (23) | 28 | (230) | 76 |
Net unrealized holding (loss) gain | (65) | (265) | (663) | 221 |
Other comprehensive loss from marketable equity securities | $ (429) | $ (368) | $ (1,027) | $ (182) |
Other Assets - Other Assets (De
Other Assets - Other Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Deferred offering costs RMB Loan | $ 28 | $ 126 |
Accumulated Mt. Hamilton advance royalty payments | 900 | 900 |
Furniture and Fixtures, net of accumulated depreciation | 53 | $ 63 |
Loan to non-controlling interest | 102 | |
Exploration bonds and other assets | 73 | $ 74 |
Total other assets | $ 1,156 | $ 1,163 |
Other Assets (Details Narrative
Other Assets (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Loan to noncontrolling interest | $ 100 | $ 100 | |
Interest income from loan to noncontrolling interest | $ 2 | $ 2 |
Short Term Debt - Summary of Sh
Short Term Debt - Summary of Short Term Debt (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2015USD ($) | |
RMB Loan Borrowing | |
Beginning balance December 31, 2014 | $ 5,000 |
Amortization of discount to interest cost | |
Ending balance March 31, 2015 | $ 5,000 |
RMB Warrant Discount | |
Beginning balance December 31, 2014 | (139) |
Amortization of discount to interest cost | 108 |
Ending balance March 31, 2015 | (31) |
RMB Long Term Debt | |
Beginning balance December 31, 2014 | 4,861 |
Amortization of discount to interest cost | 108 |
Ending balance March 31, 2015 | $ 4,969 |
Short Term Debt - Short Term De
Short Term Debt - Short Term Debt Interest (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
RMB Interest | ||||
Interest paid in cash | $ 67 | $ 46 | $ 133 | $ 96 |
Amortization of the RMB Warrants discount | 54 | 54 | 108 | 108 |
Amortization of RMB deferred financing costs | 49 | 49 | 98 | 98 |
Total interest expense | $ 170 | $ 149 | $ 339 | 302 |
UBS Interest | ||||
Interest paid in cash | $ 4 | |||
Amortization of the RMB Warrants discount | ||||
Amortization of RMB deferred financing costs | ||||
Total interest expense | $ 4 |
Short Term Debt (Details Narrat
Short Term Debt (Details Narrative) $ in Thousands | 6 Months Ended |
Jun. 30, 2014USD ($) | |
Debt Disclosure [Abstract] | |
UBS secured line of credit paid off | $ 802 |
Derivative Instruments - Gain L
Derivative Instruments - Gain Loss on Derivative Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Gain on derivative instrument | $ 1 | $ 7 | $ 83 | $ 36 |
Derivative Instruments (Details
Derivative Instruments (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Aug. 20, 2012 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||
RMBAH warrants at an exercise price of $1.5387 | 1,624,748 | |||||
RMB Warrant liability recorded | $ 34 | $ 34 | $ 55 | |||
Gain/Loss on RMB Warrants | $ (28) | $ 41 | $ 21 | $ (219) |
Fair Value - Fair Value Financi
Fair Value - Fair Value Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Marketable equity securities | $ 1,125 | $ 2,308 |
Liabilities | ||
RMB warrants | 34 | 55 |
Level 1 | ||
Assets | ||
Marketable equity securities | $ 1,125 | $ 2,308 |
Liabilities | ||
RMB warrants | ||
Kinross calls | $ 1 | |
Level 2 | ||
Assets | ||
Marketable equity securities | ||
Liabilities | ||
RMB warrants | $ 34 | $ 55 |
Kinross calls |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) $ in Thousands | 3 Months Ended |
Jun. 30, 2014USD ($) | |
Income Tax Disclosure [Abstract] | |
Deferred tax expense in statement of operations | $ 100 |
Employee Stock Compensation P43
Employee Stock Compensation Plans (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 18, 2013 | Jun. 27, 2006 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||
Stock option expense for amortization of grant date fair value | $ 157 | $ 55 | $ 313 | $ 111 | ||
Options available for grant upon approval of option plans | 1,750,000 | 2,800,000 | ||||
Restricted stock units granted | 50,562 |
Shareholders Equity, Comprehe44
Shareholders Equity, Comprehensive Loss, and Noncontrolling Interest (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2015 | |
Common Stock | |||
Beginning balance, value | $ 393 | $ 393 | $ 393 |
Beginning balance, shares | 39,247,689 | 39,247,689 | 39,247,689 |
Issuance of shares for mineral property, value | |||
Issuance of shares for mineral property, shares | 66,500 | ||
Ending balance, value | $ 393 | $ 393 | $ 393 |
Ending balance, shares | 39,314,189 | 39,247,689 | 39,314,189 |
Additional Paid-In Capital | |||
Beginning balance, value | $ 54,669 | $ 54,512 | $ 54,512 |
Issuance of shares for mineral property, value | 51 | ||
Stock option expense | 156 | 157 | |
Ending balance, value | 54,876 | 54,669 | 54,876 |
Retained Earnings / Accumulated Deficit | |||
Beginning balance, value | (47,013) | (46,563) | (46,563) |
Net loss | (141) | (450) | |
Ending balance, value | (47,154) | (47,013) | (47,154) |
Other Comprehensive Income / Loss | |||
Beginning balance, value | (1,718) | (1,120) | (1,120) |
Net realized and unrealized loss on marketable equity securities | (429) | (598) | |
Ending balance, value | (2,147) | (1,718) | (2,147) |
Noncontrolling Interest | |||
Beginning balance, value | (442) | (441) | (441) |
Noncontrolling interest contribution | 100 | ||
Net loss | (1) | (1) | |
Ending balance, value | (343) | (442) | (343) |
Beginning balance, value | 5,889 | 6,781 | 6,781 |
Issuance of shares for mineral property, value | 51 | ||
Stock option expense | 156 | 157 | |
Noncontrolling interest contribution | 100 | ||
Net loss | (142) | (451) | (593) |
Net realized and unrealized loss on marketable equity securities | (429) | (598) | |
Ending balance, value | $ 5,625 | $ 5,889 | $ 5,625 |
Segment Reporting - Segment Rep
Segment Reporting - Segment Reporting (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Other loss (1) (3) | $ 28 | $ 153 | ||
Mt Hamilton | ||||
Exploration expense | ||||
Interest expense (2) | ||||
Other loss (1) (3) | ||||
Pre-tax loss | ||||
Total assets (4)(5) | $ 16,651 | $ 15,121 | ||
Capital Expenditures (2) | 1,024 | 1,258 | ||
Exploration | ||||
Exploration expense | $ 7 | $ 136 | $ 32 | $ 184 |
Interest expense (2) | ||||
Other loss (1) (3) | $ 4 | $ 50 | $ 14 | $ 185 |
Pre-tax loss | $ 11 | $ 186 | 46 | 369 |
Total assets (4)(5) | $ 80 | $ 316 | ||
Capital Expenditures (2) | ||||
Corporate and Other | ||||
Exploration expense | ||||
Interest expense (2) | ||||
Other loss (1) (3) | $ 131 | $ 255 | $ 547 | $ 707 |
Pre-tax loss | $ 131 | $ 255 | 547 | 707 |
Total assets (4)(5) | $ 1,348 | $ 3,813 | ||
Capital Expenditures (2) | ||||
Consolidated | ||||
Exploration expense | $ 7 | $ 136 | $ 32 | $ 184 |
Interest expense (2) | ||||
Other loss (1) (3) | $ 135 | $ 305 | $ 561 | $ 892 |
Pre-tax loss | $ 142 | $ 441 | 593 | 1,076 |
Total assets (4)(5) | 18,079 | 19,250 | ||
Capital Expenditures (2) | $ 1,024 | $ 1,258 |