Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Mar. 03, 2016 | |
Document And Entity Information | ||
Entity Registrant Name | Solitario Exploration & Royalty Corp. | |
Entity Central Index Key | 917,225 | |
Document Type | 10-K | |
Document Period End Date | Dec. 31, 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 Public Float | $ 19,104,725 | |
Entity Common Stock, Shares Outstanding | 39,044,994 | |
Document Fiscal Period Focus | FY | |
Document Fiscal Year Focus | 2,015 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 17,718 | $ 487 |
Investments in marketable equity securities, at fair value | 202 | 2,308 |
Prepaid expenses and other | $ 70 | 28 |
Current assets of discontinued operations | 394 | |
Total current assets | $ 17,990 | 3,217 |
Mineral properties | 19 | 19 |
Other assets | $ 45 | 181 |
Noncurrent assets of discontinued operations | 15,623 | |
Total assets | $ 18,054 | 19,040 |
Current liabilities: | ||
Accounts payable | $ 175 | 142 |
Current portion long-term debt, net of discount | 4,861 | |
Warrant liability | $ 4 | 55 |
Current liabilities of discontinued operations | 201 | |
Total current liabilities | $ 179 | 5,259 |
Noncurrent liabilities of discontinued operations | $ 7,000 | |
Shareholders’ Equity: | ||
Preferred stock, $0.01 par value, authorized 10,000,000 shares (none issued and outstanding at December 31, 2015 and 2014) | ||
Common stock, $0.01 par value, authorized, 100,000,000 shares (39,169,189 and 39,247,689 , respectively, shares issued and outstanding at December 31, 2015 and 2014) | $ 392 | $ 393 |
Additional paid-in capital | 55,063 | 54,512 |
Accumulated deficit | (37,691) | (46,563) |
Accumulated other comprehensive income (loss) | 111 | (1,120) |
Total Solitario shareholders’ equity | $ 17,875 | 7,222 |
Noncontrolling interest | (441) | |
Total shareholders' equity | $ 17,875 | 6,781 |
Total liabilities and shareholders' equity | $ 18,054 | $ 19,040 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 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 | 39,169,189 | 39,247,689 |
Common stock, shares outstanding | 39,169,189 | 39,247,689 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Property and joint venture revenue | ||
Joint venture property payments | $ 200 | |
Costs, expenses and other: | ||
Exploration expense | $ 89 | 279 |
Depreciation and amortization | 11 | 13 |
General and administrative | 1,965 | 2,176 |
Gain on derivative instruments | $ (84) | (39) |
Property abandonment and impairment | 20 | |
Gain on sale of assets | $ (7) | (1) |
Interest expense and dividend income (net) | (12) | (1) |
Total costs, expenses and other | 1,962 | 2,447 |
Other (expense) income | ||
(Loss) gain on sale of marketable equity securities | (969) | 472 |
Gain on warrant liability | $ 51 | 85 |
Equity in net loss of equity method investment | (153) | |
Total other (expense) income | $ (918) | 404 |
Loss before income tax | (2,880) | $ (1,843) |
Income tax expense | (560) | |
Loss from continuing operations | (3,440) | $ (1,843) |
Gain on sale of discontinued operations | 12,309 | |
Net income (loss) | 8,869 | $ (1,843) |
Loss attributable to noncontrolling interest | 3 | 10 |
Net income (loss) attributable to Solitario shareholders | $ 8,872 | $ (1,833) |
Income (loss) per common share attributable to Solitario shareholders basic and diluted | ||
Continuing operations | $ (0.09) | $ (0.05) |
Discontinued operations | 0.31 | |
Net income (loss) | $ 0.23 | $ (0.05) |
Weighted average shares outstanding: | ||
Basic and diluted | 39,287 | 38,967 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Consolidated Statements Of Comprehensive Loss | ||
Net income (loss) for the period, before other comprehensive loss | $ 8,869 | $ (1,843) |
Other comprehensive income (loss): | ||
Unrealized gain (loss) on marketable equity securities, net of deferred taxes | 1,231 | (1,580) |
Comprehensive income (loss) | 10,100 | (3,423) |
Loss attributable to noncontrolling interests | 3 | 10 |
Comprehensive income (loss) attributable to Solitario shareholders | $ 10,103 | $ (3,413) |
Consolidated Statements of Shar
Consolidated Statements of Shareholders Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Retained Earnings / Accumulated Deficit | Other Comprehensive Income / Loss | Total Solitario Shareholders' Equity | Noncontrolling Interest | Total |
Beginning balance, value at Dec. 31, 2013 | $ 375 | $ 51,963 | $ (44,730) | $ 460 | $ 8,068 | $ (105) | $ 7,963 |
Beginning balance, shares at Dec. 31, 2013 | 37,512,127 | ||||||
Issuance of shares from restricted stock grant, value | 45 | 45 | 45 | ||||
Issuance of shares from restricted stock grant, shares | 50,562 | ||||||
Issuance of shares and cash to noncontrolling shareholder for future earn-in, value | $ 1 | 75 | 76 | (326) | (250) | ||
Issuance of shares and cash to noncontrolling shareholder for future earn-in, shares | 50,000 | ||||||
Issuance of shares in private placement, value | $ 16 | 1,614 | 1,630 | 1,630 | |||
Issuance of shares in private placement, shares | 1,600,000 | ||||||
Stock option expense | 778 | 778 | 778 | ||||
Issuance of shares for mineral property, value | $ 1 | 37 | 38 | $ 38 | |||
Issuance of shares for mineral property, shares | 35,000 | ||||||
Noncontrolling interest contribution | |||||||
Net income (loss) | (1,833) | (1,833) | (10) | $ (1,843) | |||
Net unrealized (loss) on marketable equity securities (net of tax) | (1,580) | (1,580) | (1,580) | ||||
Ending balance, value at Dec. 31, 2014 | $ 393 | 54,512 | (46,563) | (1,120) | 7,222 | (441) | 6,781 |
Ending balance, shares at Dec. 31, 2014 | 39,247,689 | ||||||
Stock option expense | 566 | 566 | 566 | ||||
Issuance of shares for mineral property, value | 51 | 51 | 51 | ||||
Issuance of shares for mineral property, shares | 66,500 | ||||||
Noncontrolling interest contribution | 188 | 188 | |||||
Sale of MH-LLC | 256 | 256 | |||||
Repurchase of shares for cancellation, value | $ (1) | (66) | (67) | (67) | |||
Repurchase of shares for cancellation, shares | (145,000) | ||||||
Net income (loss) | 8,872 | 8,872 | $ (3) | 8,869 | |||
Net unrealized (loss) on marketable equity securities (net of tax) | 1,231 | 1,231 | 1,231 | ||||
Ending balance, value at Dec. 31, 2015 | $ 392 | $ 55,063 | $ (37,691) | $ 111 | $ 17,875 | $ 17,875 | |
Ending balance, shares at Dec. 31, 2015 | 39,169,189 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Operating activities: | ||
Net income (loss) | $ 8,869 | $ (1,843) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
(Gain) loss on derivative instruments | (84) | (39) |
Depreciation and amortization | $ 11 | 13 |
Loss on equity method investment | 153 | |
Property abandonment and impairment | 20 | |
Employee stock option expense | $ 566 | $ 778 |
Deferred income taxes | 560 | |
(Gain) loss on warrant liability | (51) | $ (85) |
Loss (gain) on asset and equity security sales | 962 | $ (473) |
(Gain) on sale of discontinued operations | (12,309) | |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other current assets | (53) | $ 60 |
Accounts payable and other current liabilities | (4) | (225) |
Net cash (used in) operating activities from continuing operations | (1,533) | (1,641) |
Net cash (used in ) operating activities from discontinued operations | (190) | 31 |
Net cash (used in) operating activities | (1,723) | (1,610) |
Investing activities: | ||
Additions to other assets | (8) | (5) |
Sale of derivative instrument, net | 84 | $ 36 |
Proceeds from sale of MH-LLC | 24,000 | |
Proceeds from sale of marketable equity securities | 809 | $ 556 |
Proceeds from sale of other assets | 7 | |
Net cash provided by (used in) investing activities from continuing operations | 24,892 | $ 587 |
Net cash (used in) investing activities from discontinued operations | (1,059) | (2,278) |
Net cash provided by (used in) investing activities | 23,833 | $ (1,691) |
Financing activities: | ||
Repayment of long-term debt | (5,000) | |
Noncontrolling interest contribution, net | 188 | |
Repurchase of Solitario common stock for cancellation | $ (67) | |
Proceeds from issuance of debt, net | $ 1,500 | |
Proceeds from issuance of common stock , net | 1,630 | |
Short-term borrowing | 100 | |
Repayment of short-term borrowing | (902) | |
Payment to noncontrolling interest | (250) | |
Net cash (used by) provided by financing activities | $ (4,879) | 2,078 |
Net (decrease) increase in cash and cash equivalents | 17,231 | (1,223) |
Cash and cash equivalents, beginning of year | 487 | 1,710 |
Cash and cash equivalents, end of year | 17,718 | 487 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest, capitalized to mineral property | 228 | 220 |
Capitalized non-cash interest | 265 | 412 |
Capitalized depreciation | 7 | 21 |
Issuance of stock for mineral property | $ 51 | 38 |
Capitalized property payment included in accounts payable | 150 | |
Issuance of stock from restricted stock grant | $ 45 |
Business and Summary of Signifi
Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Business and Summary of Significant Accounting Policies | 1. Business and Summary of Significant Accounting Policies Recent Developments Sale of Mt. Hamilton LLC On August 25, 2015 Solitario Exploration & Royalty Corp. (Solitario or the Company), along with DHI Minerals (U.S.) Ltd. (DHI), sold their combined interests in the Mt. Hamilton gold project (Mt. Hamilton) to Waterton Nevada Splitter, LLC (Waterton), for total cash proceeds of US$30 million (the Transaction) pursuant to a definitive agreement entered into on June 10, 2015 (the Agreement). Solitario sold its 80% interest in Mt. Hamilton LLC (MH-LLC), a limited liability company which holds 100% of the Mt. Hamilton project assets, and DHI sold its 20% interest in MH-LLC. DHI is a wholly-owned subsidiary of Ely Gold and Minerals, Inc. (Ely). Solitario received gross cash proceeds of US$24 million and DHI received gross cash proceeds of US$6 million. Solitarios costs and fees related to the Transaction, including broker fees and professional service fees, were $439,000. The Transaction was structured as the sale of Solitarios and DHIs combined membership interests in MH-LLC. Completion of the Transaction was subject to the satisfaction of various conditions precedent, including the approval of the holders of a majority of Solitarios outstanding shares of common stock, which was received at Solitarios annual shareholder meeting on August 14, 2015. The assets and liabilities as of December 31, 2014 related to MH-LLC and sold in the Transaction are shown as assets and liabilities of discontinued operations on the 2014 consolidated balance sheet as follows: (in thousands) December 31, 2014 Cash and cash equivalents $ 382 Other current assets 12 Current assets 394 Mineral properties, net 14,641 Other assets 982 Noncurrent assets 15,623 Total assets $16,017 Accounts payable $ 201 Deferred revenue 7,000 Total liabilities $ 7,201 During years ended December 31 2015 and 2014 virtually all of the costs associated with MH-LLC and the assets sold were directly related to the development of the Mt. Hamilton project, which were capitalized to mineral property during all periods. Accordingly, separate presentation of discontinued operations would not have resulted in any material change to the results presented in the consolidated statements of operations for the years ended December 31, 2015 and 2014. The gain on sale of MH-LLC as of December 31, 2015 is shown in gain on sale of discontinued operations as follows: (in thousands) Year ended December 31, 2015 Proceeds from sale of MH-LLC $24,000 Net assets and liabilities disposed of 9,998 Non-controlling interest 256 Expenses of sale of MH-LLC 439 Gain on sale of discontinued operations, before tax 13,307 Income tax expense 998 Gain on sale of discontinued operations $12,309 Income taxes have been allocated between discontinued operations and continuing operations in accordance with ASC No. 740 Income Taxes (ASC 740). As a result of the anticipated use of available loss carryforwards and expected 2015 tax losses sufficient to offset the gain from the Transaction, Solitario does not expect to have any currently payable income taxes for 2015. See Note 6, Income Taxes, below. Repayment of the RMB Loan Concurrent with the closing of the Transaction, Solitario paid $5,000,000 plus $7,000 of interest and fees to fully repay the funds Solitario had borrowed pursuant to a facility agreement (the Facility Agreement) with RMB Australia Holdings Limited (RMBAH) and RMB Resources, Inc., a Delaware corporation (RMBR) whereby Solitario had borrowed $5,000,000 from RMBAH (RMB Loan). 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 to acquire 1,624,748 shares of Solitario common stock (the RMB Warrants) from August 21, 2015 to August 21, 2016. The RMB Warrants were originally issued in August 2012 to RMBAH as partial consideration for financing services provided in connection with the Facility Agreement. Business and Company formation Solitario is an exploration stage company at September 30, 2015 under Industry Guide 7, as issued by the United States Securities and Exchange Commission (SEC). 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. Solitarios primary business is to acquire and hold a portfolio of exploration properties and other related assets for future sale or joint venture or to create a royalty prior to the establishment of proven and probable reserves. As a result of the completion of the Transaction, Solitario has shifted its primary focus from the development of the Mt. Hamilton project to Solitarios historical focus of the acquisition of precious and base metal properties and assets with exploration potential and the development or purchase of royalty interests. 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, although significant when they occur, have not been a consistent annual source of revenue and would only occur in the future, if at all, on an infrequent basis. Financial reporting The consolidated financial statements include the accounts of Solitario and its wholly-owned subsidiaries and 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. 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) Solitarios investment in cash and cash equivalents; (ii) the recoverability of mineral properties related to its mineral exploration properties and their future exploration potential; (iii) the fair value of Solitario's stock option grants to employees; (iv) the ability of Solitario to realize its deferred tax assets; (v) Solitario's investment in marketable equity securities; (vi) the fair value of Solitarios liability for warrants Solitario granted 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. As of December 31, 2015 and 2014 Solitario had concentrations of cash and cash equivalents in excess of federally insured amounts and cash in foreign banks, which are not covered under the federal deposit insurance rules for the United States. 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 through the date of the Transaction. 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 and accounts payable, the carrying amounts approximate fair value due to their short-term maturities. Solitario's marketable equity securities and any covered call options against those marketable equity securities are carried at their estimated fair value based on quoted market prices. See Note 9, Fair Value of Financial Instruments 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 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 in fair value 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. Equity method investments Solitario records its share of income or loss of unconsolidated subsidiaries where it has a significant influence over the unconsolidated subsidiary, under the equity method of accounting, as an increase or decrease in its investment in the unconsolidated subsidiary. Solitario accounted for its investment in Pedra Branca do Mineracao, Ltd. (PBM) under the equity method since July 2010, when Anglo Platinum Limited (Anglo) earned a 51% interest in PBM. Solitario terminated its interest in PBM during 2015, and has no equity method investments as of December 31, 2015. See Note 2, Mineral Properties below. 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 6, 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 years ended December 31, 2015 and 2014. Potentially dilutive shares related to outstanding common stock options of 40,000 and 3,748,000 for the years ended December 31, 2015 and 2014, respectively, and RMB warrants of 1,624,748 for the years ended December 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. See Note 10, Employee Stock Compensation Plans below. Recent accounting pronouncements There are no recent accounting pronouncements, adopted or issued by the FASB during the year ended December 31, 2015 that would have a material impact upon Solitario. |
Mineral Properties
Mineral Properties | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Mineral Properties | 2. Mineral Properties The following table details Solitarios capitalized investment in exploration mineral property: (in thousands) December 31, 2015 2014 Exploration La Promesa (Peru) 5 5 Norcan (Mexico) 6 6 Aconchi (Mexico) 5 5 Canta Colorado (Mexico) 3 3 Total exploration mineral property 19 19 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. Solitario sold its interest in the Mt. Hamilton project on August 25, 2015 through the Transaction. Mt. Hamilton capitalized costs are included in discontinued operations at December 31, 2014. See above in Recent Developments in Note 1, Business and Summary of Significant Accounting Policies. Capitalized costs Solitario has been capitalizing its development costs incurred at its Mt. Hamilton project subsequent to the completion of the Feasibility Study in February 2012. The following table details the capitalization during 2015 up to the date of the Transaction and for the year ended December 31, 2014: (in thousands) Year ended December 31, 2015 2014 Development expenditures $692 $ 1,678 Capitalized interest 493 633 Property payments 190 250 Capitalized depreciation 7 21 Total capitalized costs $ 1,382 $ 2,582 Included in the property payments during 2015 and 2014 are the issuance of 66,500 and 35,000, respectively, common shares of Solitario with fair values of $51,000 and $38,000, respectively, issued to underlying leaseholders which were recorded as an increase to common stock, for the par value of the shares issued and to additional paid-in-capital. These capitalized costs at December 31, 2014 are included in discontinued operations and all costs associated with Mt. Hamilton related to the Transaction were included in the net assets disposed of in determining the gain on sale of MH-LLC during 2015. Solitario also capitalized $300,000 during 2014 of advance royalty payments to the underlying leaseholder as long-term other assets. See Note 4, Other Assets, below. Exploration property Solitario's exploration mineral properties at December 31, 2015 consist of use rights related to its exploration properties, and the value of such assets is primarily driven by the nature and amount of economic mineral ore believed to be contained, or potentially contained, in such properties. The amounts capitalized as mineral properties include concession and lease or option acquisition costs. Capitalized costs related to a mineral property represent its fair value at the time it was acquired. At December 31, 2015, none of Solitarios exploration properties have production (are operating) or contain proven or probable reserves. Solitario's exploration mineral properties represent interests in properties that Solitario believes have exploration and development potential. Solitario's mineral use rights generally are enforceable regardless of whether proven and probable reserves have been established. In addition to its capitalized exploration properties, Solitario has an interest in its Bongará exploration concession, which is currently subject to a joint venture agreement where joint venture partners made stand-by joint venture payments to Solitario during 2014. Solitario records joint venture property payment revenue received in excess of capitalized costs and recorded $200,000 of standby joint venture property revenue on its Bongará project during 2014. Per the joint venture agreement no further standby joint venture payments are due to Solitario on the Bongará project. At December 31, 2015 and 2014, Solitario has no remaining capitalized costs related to its Bongará joint venture. Solitario previously sold its mineral interests in its Yanacocha exploration projects and retained a royalty interest. Solitario has no capitalized costs related to its Yanacocha royalty interest. Discontinued projects During 2015, Solitario converted its operating interest in its Pedra Branca Mineracao, Ltd (PBM), which was the owner of the Pedra Branca project in Brazil, to a 1% net smelter royalty in the Pedra Branca project, upon the termination of its interest in PBM. Previously Solitario had accounted for its interest in PBM under the equity method of accounting through 2014, recognizing a reduction of its remaining interest in PBM of $153,000 during 2014, and has no remaining asset value assigned to PBM or Pedra Branca as of December 31, 2015 and 2014. During 2014, Solitario recorded $20,000 of mineral property write-downs related to its Pachuca exploration project in Mexico. Exploration Expense The following items comprised exploration expense: For the year ended December 31, (in thousands) 2015 2014 Geologic and field expenses $31 $197 Administrative 58 82 Total exploration expense $89 $279 |
Marketable Equity Securities
Marketable Equity Securities | 12 Months Ended |
Dec. 31, 2015 | |
Investments [Abstract] | |
Marketable Equity Securities | 3. Marketable Equity Securities Prior to the Transaction, Solitario entered into an agreement with Ely and transferred 15,732,274 shares of Ely common stock it held, in exchange for cancellation of certain payment obligations related to MH-LLC, and in consideration for consent to extend the RMB Loan from August 21, 2015 to September 30, 2015 (the Ely Consent). Solitario recorded a loss on sale of marketable equity securities of $1,510,000 on the transfer of the Ely common stock during 2015. Solitario holdings in Kinross Gold Corporation (Kinross) consisted of the following at December 31, 2015 and 2014: (in thousands of US Dollars, except share amounts) December 31, 2015 2014 Shares 100,000 480,000 Fair value Current assets $182 $1,354 Additionally at December 31, 2015 Solitario owned other marketable equity securities carried at their fair value of $20,000. Solitario sold the following shares of Kinross during 2015 and 2014: (in thousands) Year ended 2015 2014 Shares sold 380 120 Proceeds $809 $556 Gain on sale $541 $472 The following tables summarize Solitarios marketable equity securities and accumulated other comprehensive income related to its marketable equity securities: (in thousands) December 31, 2015 2014 Marketable equity securities at fair value $202 $2,308 Cost 91 1,870 Accumulated other comprehensive income for 111 438 Deferred taxes on accumulated other comprehensive - (1,558) Accumulated other comprehensive income (loss) $ 111 $ (1,120) The following table represents changes in marketable equity securities: (in thousands) Year ended 2015 2014 Gross cash proceeds $ 809 $ 556 Cost 1,778 84 Gross (loss) gain on sale included in earnings during the period (969) 472 Deferred taxes on gross gain on sale included in earnings - - Reclassification adjustment to unrealized gain (loss) in other 969 (472) Gross unrealized holding loss arising during the period (1,296) (1,108) Clearing of disproportionate tax effect for deferred taxes on unrealized holding losses included in other comprehensive loss 1,558 - Net unrealized holding gain (loss) 262 (1,108) Other comprehensive income (loss) from marketable equity $1,231 $(1,580) |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | 4. Other Assets: The following items comprised other assets: (in thousands) December 31, 2015 2014 Furniture and Fixtures, net of accumulated depreciation $ 41 $ 51 Exploration bonds and other assets 4 4 Deferred offering costs RMB Loan - 126 Total other assets $ 45 $ 181 In connection with the RMB Loan, Solitario recorded deferred offering costs that were 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. |
Short Term Debt
Short Term Debt | 12 Months Ended |
Dec. 31, 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 had borrowed $5,000,000 from RMBAH as of the date of the Transaction. In connection with the Facility Agreement, Solitario recorded a warrant discount related to the RMB Warrants. Solitario also recorded deferred offering costs related to the RMB Loan. The warrant discount and deferred offering costs were amortized on a straight-line basis to interest cost over 36 months, the term of the Facility Agreement. The RMB Loan amounts bear interest at the 90-day LIBOR rate plus 5%, payable in arrears on the last day of each quarterly interest period. On August 5, 2015, Solitario entered into the RMB Loan Extension to extend the maturity date of the RMB Loan from August 21, 2015 to September 30, 2015. 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 the RMB Warrants from August 21, 2015 to August 21, 2016. Concurrent with the closing of the Transaction Solitario paid RMBAH $5,000,000 plus $7,000 of interest and fees in full payment of the RMB Loan and all obligations due under the Facility Agreement. Upon payment the RMB Loan was terminated and may not be drawn in the future. Solitario had no balance due on the RMB Loan as of December 31, 2015. The following table summarizes the RMB Loan: RMB RMB RMB (in thousands) Loan borrowing Warrant discount Short-term Balance December 31, 2013 $3,500 $(356) $3,144 Borrowing 1,500 - 1,500 Amortization of discount to interest cost - 217 217 Ending balance December 31, 2014 5,000 (139) 4,861 Amortization of discount to interest cost - 139 139 Repayment of RMB Loan (5,000) - (5,000) Ending balance December 31, 2015 $ - $ - $ - UBS Short-term credit line During 2014 Solitario had a secured credit line agreement with UBS Bank, USA (UBS), which was secured by Solitarios assets held in its UBS brokerage account. The UBS secured line of credit of $802,000 was paid off during 2014. Solitario recorded the following interest cost related to outstanding short-term debt: (in thousands) Year ended 2015 2014 Interest paid in cash $ 228 $ 217 Amortization of the RMB Warrants discount 139 217 Amortization of RMB deferred financing costs 126 195 Total interest expense related to the RMB Loan 493 629 UBS secured credit line - 4 $493 $633 Solitario capitalized all of its interest incurred during 2015 and 2014 to mineral property. See Note 2, Mineral Properties, above. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 6. Income Taxes Solitario's income tax expense from continuing operations consists of the following as allocated between foreign and United States components: (in thousands) 2015 2014 Current: Federal $ - $ - State - - Foreign - - Deferred: Federal 662 - State (102) - Foreign - - Income tax expense $ 560 $ - Income tax expense is included in the financial statements as follows: (in thousands) 2015 2014 Continuing Operations $ 560 $ - Discontinued Operations 998 - Other Comprehensive Income (1,558) - Total Income tax expense $ - $ - Consolidated loss before income taxes includes losses from foreign operations of $98,000 and $262,000 in 2015 and 2014, respectively. As discussed in Note 1, the Transaction resulted in a $13,307,000 before tax gain reported in discontinued operations. Solitario recorded $998,000 of tax expense in discontinued operations which was net of $3,930,000 tax benefit for the release of valuation allowance. Income taxes have been allocated between discontinued operations and continuing operations in accordance with ASC No. 740 Income Taxes (ASC 740). See Note 3, Marketable Equity Securities for detail of the deferred taxes associated with the sale of marketable equity securities and the deferred taxes associated with unrealized gains and losses associated with other comprehensive income related to marketable equity securities. The net deferred tax assets/liabilities in the December 31, 2015 and 2014 consolidated balance sheets include the following components: (in thousands) 2015 2014 Deferred tax assets: Loss carryovers $6,982 $11,168 Deferred gain - 2,376 Stock option compensation expense 7 350 Royalty 1,482 1,387 Unrealized loss on derivative securities 38 - Earnings in Unconsolidated Subsidiary - 865 Other 105 105 Valuation allowance (8,571) (12,431) Total deferred tax assets 43 3,820 Deferred tax liabilities: Unrealized gain on derivative securities - 238 MH-LLC investment - 2,305 Exploration costs - 845 Unrealized gains on marketable equity securities 41 152 Capitalized interest - 277 Other 2 3 Total deferred tax liabilities 43 3,820 Net deferred tax liabilities $ - $ - A reconciliation of expected federal income taxes on income (loss) from continuing operations at statutory rates, with the expense for income taxes is as follows: (in thousands) 2015 2014 Expected income tax benefit $(976) $(627) Reversal of disproportionate Tax Effect in other comprehensive income 1,558 - Equity based compensation 575 850 Foreign tax rate differences 3 (101) State income tax (606) (146) True-up of deferred taxes 267 - Tax attributes of disposed subsidiary 3,941 - Previously unrecognized basis in disposed subsidiary (4,170) - Change in valuation allowance (40) (5) MH-LLC investment 1 3 Permanent differences and other 7 26 Income tax expense $ 560 $ - During 2015 the valuation allowance was decreased primarily due to the utilization of loss carryforwards for which no tax benefit was previously realized. During 2014, the valuation allowance was increased primarily as a result of increases in Solitario foreign net operating loss carryforwards, for which it was more likely than not that the deferred tax benefit would not be realized, as well as a decrease in unrealized gains available to offset the future reversal of deferred tax assets. During 2015 and 2014, other comprehensive income/(loss) was recognized in the amounts of approximately ($327,000) and ($1,580,000), respectively. In 2015 and 2014, no tax benefit was recorded in other comprehensive income/(loss) as a $111,000 and $535,000 valuation allowance fully offset the attendant tax benefit. At December 31, 2015, Solitario has unused US Federal Net Operating Loss ("NOL") carryovers of $58,000 and unused US State NOL carryovers of $1,601,000 which expire in 2034. Solitario has unused Capital Loss carryovers of $5,902,000 for US Federal and US State purposes which begin expiring in 2019. Solitario has foreign loss carryforwards for which Solitario has provided a full valuation allowance and which expire over various periods from five years to no expiration depending on the foreign jurisdiction. Solitario adopted the provisions ASC 740, which 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 requires that Solitario recognize in its consolidated financial statements, only those tax positions that are more-likely-than-not of being sustained as of the adoption date, based on the technical merits of the position. As a result of the implementation of ASC 740, Solitario performed a comprehensive review of its material tax positions in accordance with recognition and measurement standards established by ASC 740. The provisions of ASC 740 had no effect on Solitarios financial position, cash flows or results of operations at December 31, 2015 or December 31, 2014, or for the years then ended as Solitario had no unrecognized tax benefits. Solitario and its subsidiaries are subject to the following material taxing jurisdictions: United States Federal, State of Colorado, Mexico and Peru. Solitarios policy is to recognize interest and penalties related to uncertain tax benefits in income tax expense. Solitario has no accrued interest or penalties related to uncertain tax positions as of December 31, 2015, or December 31, 2014 or for the years then ended. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | 7. Derivative Instruments: RMB warrants The RMB Warrants entitle the holder to purchase one shares 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 amortized on a straight-line basis. See Note 5, Short-term Debt, above. Solitario has recorded a liability as of December 31, 2015 and 2014 of $4,000 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 gain of $51,000 and $85,000, respectively, on the RMB Warrants during the year ended December 31, 2015 and 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 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. Solitario has not designated its covered calls as hedging instruments as described in ASC 815, Derivatives and Hedging, and any changes in the fair value of its covered calls are recognized in the statement of operations in the period of the change. As of December 31 2015 and 2014 all of the covered calls had expired unexercised and there were no liabilities related to those calls entered during each of the years. Solitario recorded the following gain on derivative instruments related to Kinross calls: (in thousands) Year ended December 31, 2015 December 31, 2014 Gain on derivative instrument $84 $39 The following table provides the location and amount of the fair values of Solitario's derivative instruments presented in the consolidated balance sheet as of December 31, 2015 and 2014: Derivatives (in thousands) Balance Sheet Location December 31, 2015 December 31, 2014 Derivatives not designated as hedging instruments under ASC 815 RMB warrants Other current labilities $ 4 $55 Kinross calls Other current liabilities $ - $ - |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 8. Fair Value of Financial Instruments 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 maturities. Solitario's marketable equity securities, including its investment in shares of Kinross common stock and TNR Gold equity investments are carried at their estimated fair value primarily based on publicly available quoted market prices. Solitario applies 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 years ended December 31, 2015 and 2014, 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 December 31, 2015: (in thousands) Level 1 Level 2 Level 3 Total Assets Marketable equity securities $202 $ - $ - $202 Liabilities RMB warrants - 4 - 4 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 Items measured at fair value on a recurring basis: Marketable equity securities : RMB Warrants During the year ended December 31, 2015, Solitario did not change any of the valuation techniques used to measure its financial assets and liabilities at fair value. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and contingencies | |
Commitments and Contingencies | 9. Commitments and Contingencies: In acquiring its interests in mineral claims and leases, Solitario has entered into lease agreements, which may be canceled at its option without penalty. Solitario is required to make minimum rental and option payments in order to maintain its interests in certain claims and leases. See Note 2, Mineral Properties, above. Solitario estimates its 2016 property rentals and option payments, excluding certain earn-in payments discussed below, for properties we own or operate to be approximately $341,000. Assuming that our joint ventures continue in their current status and that we do not appreciably change our property positions on existing properties, approximately $327,000 of these annual payments are paid or are reimbursable to us by our joint venture partners. In addition, we may be required to make further payments in the future if we elect to exercise our options under those agreements or if we enter into new agreements. Solitario leases office space under a non-cancelable operating lease for the Wheat Ridge, Colorado office which provides for total minimum rent annual rent payments of $33,000 through October of 2018. |
Employee Stock Compensation Pla
Employee Stock Compensation Plans | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employee Stock Compensation Plans | 10. Employee Stock Compensation Plans: a.) The 2006 Plan On June 27, 2006, Solitario's shareholders approved the 2006 Stock Option Incentive Plan (the "2006 Plan"). Under the terms of the 2006 Plan, the Board of Directors reserved a total of 2,800,000 shares of Solitario common stock for the potential awards to Directors, officers and employees with exercise prices equal to the market price of Solitario's common stock at the date of grant. Solitario classifies its stock options under the 2006 Plan as equity options in accordance with the provisions of ASC 718, Compensation Stock Compensation. b.) 2006 Plan stock option compensation Solitarios outstanding options from the 2006 Plan on the date of grant have a five-year term, and vest 25% on date of grant and 25% on each of the next three anniversary dates. Solitario recognizes stock option compensation expense on the date of grant for 25% of the grant date fair value, and subsequently, based upon a straight line amortization of the unvested grant date fair value of each of its outstanding options. The following table shows the grant date fair value of Solitarios only option grant during either 2015 or 2014 from the 2006 Plan as of the date of grant. Grant date fair value Grant Date 8/15/14 Option grant date price (Cdn$) $1.60 Options granted 1,990,000 Expected life years 5.0 Expected volatility 66% Risk free interest rate 1.6% Weighted average fair value $0.81 Grant date fair value $1,618,000 Solitario recorded $396,000 and $591,000, respectively, of stock option expense from the 2006 Plan during 2015 and 2014 included in general and administrative expense, for the amortization of grant date fair value with a credit to additional paid-in capital. c.) 2006 Plan stock option activity During 2015 and 2014 there were no shares issued from the exercise of options. The following table summarizes the activity for stock options outstanding under the 2006 Plan as of December 31, 2015 and 2014: 2015 2014 Weighted Weighted Average Aggregate Average Aggregate Exercise Intrinsic Exercise Intrinsic Options Price (Cdn$) Value(1) Options Price (Cdn)$ Value(1) 2006 Plan Outstanding, beginning of year 2,348,000 $1.66 2,419,000 $2.22 Granted - - 1,990,000 1.60 Exercised - - - - Cancelled/expired (2)(3) (2,188,000) 1.66 (2,061,000) 2.31 Forfeited (120,000) 1.60 - - Outstanding, end of year 40,000 $1.60 $ - 2,348,000 $1.66 $ - Exercisable, end of year 20,000 $1.60 $ - 814,250 $1.78 $ - (1)The intrinsic value at December 31, 2015 and 2014 based upon the quoted market price of Cdn $0.70 and Cdn$1.05, respectively, per share for our common stock on the TSX and an exchange ratio of 0.72120 and 0.85993, respectively, United States dollars per Canadian dollar. (2)On November 24, 2015, holders of option awards from the 2006 Plan voluntarily cancelled awards for 160,000 options with an option price of Cdn$1.49 with an expiration date of December 16, 2017 and 1,830,000 options with and option price of Cdn$1.60 with and expiration date of August 14, 2019 to allow Solitario to have additional financial flexibility. No consideration was given or received by the holders of the options to cancel the awards. (3)On January 28, 2014, holders of option awards from the 2006 Plan voluntarily cancelled awards for 1,797,000 options with an option price of Cdn$2.40 with an expiration date of May 5, 2015 to allow Solitario to have additional financial flexibility. No consideration was given or received by the holders of the options to cancel the awards. d.) The 2013 Plan On June 18, 2013 Solitarios shareholders approved the 2013 Solitario Exploration and Royalty Corp. Omnibus Stock and Incentive Plan (the 2013 Plan). Under the terms of the 2013 Plan, a total of 1,750,000 shares of Solitario common stock are reserved for awards 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. e.) Stock option compensation Solitario made no grants of options during 2015 or 2014 from the 2013 Plan. Grants from the 2013 Plan 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. Solitario recorded $170,000 and $188,000 of stock option expense from the 2013 Plan during 2015 and 2014, respectively, included in general and administrative expense, for the amortization of grant date fair value with a credit to additional paid-in capital. f.) Stock option activity During 2015 and 2014 no options granted from the 2013 Plan were exercised. During 2014 Solitario issued restricted stock units (RSUs) from the 2014 Plan for a total of 50,562 shares that vested upon grant and were issued as shares to two employees as part of their severance pay upon the employees termination from Solitario. Solitario recorded a credit to additional paid-in-capital of $45,000 on the date of issuance of the shares from the 2013 Plan. The following table summarizes the activity for stock options and RSUs outstanding under the 2013 Plan as of December 31, 2015 and 2014: 2015 2014 Weighted Weighted Average Aggregate Average Aggregate RSUs/ Exercise Intrinsic Exercise Intrinsic Options Price Value(1) Options Price Value(1) 2013 Plan Outstanding, beginning of year 1,400,000 $0.96 1,400,000 $0.96 Granted - - 50,562 0.89 Exercised - - (50,562) 0.89 Cancelled (2) (1,250,000) 0.94 - - Forfeited (150,000) 1.10 - - Outstanding, end of year - - $ - 1,400,000 $0.96 $ - Exercisable, end of year - - $ - 700,000 $0.96 $ - (1)The intrinsic value at December 31, 2015 and 2014 based upon the quoted market price of $0.49 per share and $0.92 per share, respectively, for our common stock on the NYSE-MKT. (2)On November 24, 2015, holders of option awards from the 2006 Plan voluntarily cancelled awards for 1,250,000 options with an option price of $0.94 with an expiration date of October 21, 2018 to allow Solitario to have additional financial flexibility. No consideration was given or received by the holders of the options to cancel the awards. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting | 11. Segment Reporting As a result of the Transaction Solitario operates in one segment, mineral exploration. The assets and liabilities as of December 31, 2014 related to MH-LLC and sold in the Transaction are shown as discontinued operations as detailed above under Recent Developments in Note 1, |
Business and Summary of Signi19
Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
1. Business and Summary of Significant Accounting Policies | 1. Business and Summary of Significant Accounting Policies Recent Developments Sale of Mt. Hamilton LLC On August 25, 2015 Solitario Exploration & Royalty Corp. (Solitario or the Company), along with DHI Minerals (U.S.) Ltd. (DHI), sold their combined interests in the Mt. Hamilton gold project (Mt. Hamilton) to Waterton Nevada Splitter, LLC (Waterton), for total cash proceeds of US$30 million (the Transaction) pursuant to a definitive agreement entered into on June 10, 2015 (the Agreement). Solitario sold its 80% interest in Mt. Hamilton LLC (MH-LLC), a limited liability company which holds 100% of the Mt. Hamilton project assets, and DHI sold its 20% interest in MH-LLC. DHI is a wholly-owned subsidiary of Ely Gold and Minerals, Inc. (Ely). Solitario received gross cash proceeds of US$24 million and DHI received gross cash proceeds of US$6 million. Solitarios costs and fees related to the Transaction, including broker fees and professional service fees, were $439,000. The Transaction was structured as the sale of Solitarios and DHIs combined membership interests in MH-LLC. Completion of the Transaction was subject to the satisfaction of various conditions precedent, including the approval of the holders of a majority of Solitarios outstanding shares of common stock, which was received at Solitarios annual shareholder meeting on August 14, 2015. The assets and liabilities as of December 31, 2014 related to MH-LLC and sold in the Transaction are shown as assets and liabilities of discontinued operations on the 2014 consolidated balance sheet as follows: (in thousands) December 31, 2014 Cash and cash equivalents $ 382 Other current assets 12 Current assets 394 Mineral properties, net 14,641 Other assets 982 Noncurrent assets 15,623 Total assets $16,017 Accounts payable $ 201 Deferred revenue 7,000 Total liabilities $ 7,201 During years ended December 31 2015 and 2014 virtually all of the costs associated with MH-LLC and the assets sold were directly related to the development of the Mt. Hamilton project, which were capitalized to mineral property during all periods. Accordingly, separate presentation of discontinued operations would not have resulted in any material change to the results presented in the consolidated statements of operations for the years ended December 31, 2015 and 2014. The gain on sale of MH-LLC as of December 31, 2015 is shown in gain on sale of discontinued operations as follows: (in thousands) Year ended December 31, 2015 Proceeds from sale of MH-LLC $24,000 Net assets and liabilities disposed of 9,998 Non-controlling interest 256 Expenses of sale of MH-LLC 439 Gain on sale of discontinued operations, before tax 13,307 Income tax expense 998 Gain on sale of discontinued operations $12,309 Income taxes have been allocated between discontinued operations and continuing operations in accordance with ASC No. 740 Income Taxes (ASC 740). As a result of the anticipated use of available loss carryforwards and expected 2015 tax losses sufficient to offset the gain from the Transaction, Solitario does not expect to have any currently payable income taxes for 2015. See Note 6, Income Taxes, below. Repayment of the RMB Loan Concurrent with the closing of the Transaction, Solitario paid $5,000,000 plus $7,000 of interest and fees to fully repay the funds Solitario had borrowed pursuant to a facility agreement (the Facility Agreement) with RMB Australia Holdings Limited (RMBAH) and RMB Resources, Inc., a Delaware corporation (RMBR) whereby Solitario had borrowed $5,000,000 from RMBAH (RMB Loan). 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 to acquire 1,624,748 shares of Solitario common stock (the RMB Warrants) from August 21, 2015 to August 21, 2016. The RMB Warrants were originally issued in August 2012 to RMBAH as partial consideration for financing services provided in connection with the Facility Agreement. Business and Company formation Solitario is an exploration stage company at September 30, 2015 under Industry Guide 7, as issued by the United States Securities and Exchange Commission (SEC). 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. Solitarios primary business is to acquire and hold a portfolio of exploration properties and other related assets for future sale or joint venture or to create a royalty prior to the establishment of proven and probable reserves. As a result of the completion of the Transaction, Solitario has shifted its primary focus from the development of the Mt. Hamilton project to Solitarios historical focus of the acquisition of precious and base metal properties and assets with exploration potential and the development or purchase of royalty interests. 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, although significant when they occur, have not been a consistent annual source of revenue and would only occur in the future, if at all, on an infrequent basis. Financial reporting The consolidated financial statements include the accounts of Solitario and its wholly-owned subsidiaries and 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. 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) Solitarios investment in cash and cash equivalents; (ii) the recoverability of mineral properties related to its mineral exploration properties and their future exploration potential; (iii) the fair value of Solitario's stock option grants to employees; (iv) the ability of Solitario to realize its deferred tax assets; (v) Solitario's investment in marketable equity securities; (vi) the fair value of Solitarios liability for warrants Solitario granted 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. As of December 31, 2015 and 2014 Solitario had concentrations of cash and cash equivalents in excess of federally insured amounts and cash in foreign banks, which are not covered under the federal deposit insurance rules for the United States. 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 through the date of the Transaction. 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 and accounts payable, the carrying amounts approximate fair value due to their short-term maturities. Solitario's marketable equity securities and any covered call options against those marketable equity securities are carried at their estimated fair value based on quoted market prices. See Note 9, Fair Value of Financial Instruments 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 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 in fair value 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. Equity method investments Solitario records its share of income or loss of unconsolidated subsidiaries where it has a significant influence over the unconsolidated subsidiary, under the equity method of accounting, as an increase or decrease in its investment in the unconsolidated subsidiary. Solitario accounted for its investment in Pedra Branca do Mineracao, Ltd. (PBM) under the equity method since July 2010, when Anglo Platinum Limited (Anglo) earned a 51% interest in PBM. Solitario terminated its interest in PBM during 2015, and has no equity method investments as of December 31, 2015. See Note 2, Mineral Properties below. 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 6, 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 years ended December 31, 2015 and 2014. Potentially dilutive shares related to outstanding common stock options of 40,000 and 3,748,000 for the years ended December 31, 2015 and 2014, respectively, and RMB warrants of 1,624,748 for the years ended December 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. See Note 10, Employee Stock Compensation Plans below. Recent accounting pronouncements There are no recent accounting pronouncements, adopted or issued by the FASB during the year ended December 31, 2015 that would have a material impact upon Solitario. |
Business and Summary of Signi20
Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Assets and Liabilities Discontinued Operations | (in thousands) December 31, 2014 Cash and cash equivalents $ 382 Other current assets 12 Current assets 394 Mineral properties, net 14,641 Other assets 982 Noncurrent assets 15,623 Total assets $16,017 Accounts payable $ 201 Deferred revenue 7,000 Total liabilities $ 7,201 |
Gain on Sale Discontinued Operations | (in thousands) Year ended December 31, 2015 Proceeds from sale of MH-LLC $24,000 Net assets and liabilities disposed of 9,998 Non-controlling interest 256 Expenses of sale of MH-LLC 439 Gain on sale of discontinued operations, before tax 13,307 Income tax expense 998 Gain on sale of discontinued operations $12,309 |
Mineral Properties (Tables)
Mineral Properties (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Investment in Mineral Property | (in thousands) December 31, 2015 2014 Exploration La Promesa (Peru) 5 5 Norcan (Mexico) 6 6 Aconchi (Mexico) 5 5 Canta Colorado (Mexico) 3 3 Total exploration mineral property 19 19 |
Capitalized Development Costs | (in thousands) Year ended December 31, 2015 2014 Development expenditures $692 $ 1,678 Capitalized interest 493 633 Property payments 190 250 Capitalized depreciation 7 21 Total capitalized costs $ 1,382 $ 2,582 |
Exploration Expense | For the year ended December 31, (in thousands) 2015 2014 Geologic and field expenses $31 $197 Administrative 58 82 Total exploration expense $89 $279 |
Marketable Equity Securities (T
Marketable Equity Securities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investments [Abstract] | |
Investment Kinross Gold Shares | (in thousands) December 31, 2015 2014 Shares 100 480 Fair value Current assets $182 $1,354 |
Sales of Kinross Gold Shares | (in thousands) Year ended 2015 2014 Shares sold 380 120 Proceeds $809 $556 Gain on sale $541 $472 |
Marketable Equity Securities and Accumulated Other Comprehensive Income | (in thousands) December 31, 2015 2014 Marketable equity securities at fair value $202 $2,308 Cost 91 1,870 Accumulated other comprehensive income for 111 438 Deferred taxes on accumulated other comprehensive - (1,558) Accumulated other comprehensive income (loss) $ 111 $ (1,120) |
Changes in Marketable Securities | (in thousands) Year ended 2015 2014 Gross cash proceeds $ 809 $ 556 Cost 1,778 84 Gross (loss) gain on sale included in earnings during the period (969) 472 Deferred taxes on gross gain on sale included in earnings - - Reclassification adjustment to unrealized gain (loss) in other 969 (472) Gross unrealized holding loss arising during the period (1,296) (1,108) Clearing of disproportionate tax effect for deferred taxes on unrealized holding losses included in other comprehensive loss 1,558 - Net unrealized holding gain (loss) 262 (1,108) Other comprehensive income (loss) from marketable equity $1,231 $(1,580) |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | (in thousands) December 31, 2015 2014 Furniture and Fixtures, net of accumulated depreciation $ 41 $ 51 Exploration bonds and other assets 4 4 Deferred offering costs RMB Loan - 126 Total other assets $ 45 $ 181 |
Short Term Debt (Tables)
Short Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Short Term Debt - Summary of Short Term Debt | RMB RMB RMB (in thousands) Loan borrowing Warrant discount Short-term Balance December 31, 2013 $3,500 $(356) $3,144 Borrowing 1,500 - 1,500 Amortization of discount to interest cost - 217 217 Ending balance December 31, 2014 5,000 (139) 4,861 Amortization of discount to interest cost - 139 139 Repayment of RMB Loan (5,000) - (5,000) Ending balance December 31, 2015 $ - $ - $ - |
Short Term Debt Interest | (in thousands) Year ended 2015 2014 Interest paid in cash $ 228 $ 217 Amortization of the RMB Warrants discount 139 217 Amortization of RMB deferred financing costs 126 195 Total interest expense related to the RMB Loan 493 629 UBS secured credit line - 4 $493 $633 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Expense | (in thousands) 2015 2014 Current: Federal $ - $ - State - - Foreign - - Deferred: Federal 662 - State (102) - Foreign - - Income tax expense $ 560 $ - |
Income Tax Expense in Financial Statements | (in thousands) 2015 2014 Continuing Operations $ 560 $ - Discontinued Operations 998 - Other Comprehensive Income (1,558) - Total Income tax expense $ - $ - |
Deferred Tax Assets and Liabilities | (in thousands) 2015 2014 Deferred tax assets: Loss carryovers $6,982 $11,168 Deferred gain - 2,376 Stock option compensation expense 7 350 Royalty 1,482 1,387 Unrealized loss on derivative securities 38 - Earnings in Unconsolidated Subsidiary - 865 Other 105 105 Valuation allowance (8,571) (12,431) Total deferred tax assets 43 3,820 Deferred tax liabilities: Unrealized gain on derivative securities - 238 MH-LLC investment - 2,305 Exploration costs - 845 Unrealized gains on marketable equity securities 41 152 Capitalized interest - 277 Other 2 3 Total deferred tax liabilities 43 3,820 Net deferred tax liabilities $ - $ - |
Reconciliation of Income Taxes | (in thousands) 2015 2014 Expected income tax benefit $(976) $(627) Reversal of disproportionate Tax Effect in other comprehensive income 1,558 - Equity based compensation 575 850 Foreign tax rate differences 3 (101) State income tax (606) (146) True-up of deferred taxes 267 - Tax attributes of disposed subsidiary 3,941 - Previously unrecognized basis in disposed subsidiary (4,170) - Change in valuation allowance (40) (5) MH-LLC investment 1 3 Permanent differences and other 7 26 Income tax expense $ 560 $ - |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Gain on derivative instruments | (in thousands) Year ended December 31, 2015 December 31, 2014 Gain on derivative instrument $84 $39 |
Fair value derivative instruments | Derivatives (in thousands) Balance Sheet Location December 31, 2015 December 31, 2014 Derivatives not designated as hedging instruments under ASC 815 RMB warrants Other current labilities $ 4 $55 Kinross calls Other current liabilities $ - $ - |
Fair Value of Financial Instr27
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Financial Assets and Liabilities | (in thousands) Level 1 Level 2 Level 3 Total Assets Marketable equity securities $202 $ - $ - $202 Liabilities RMB warrants - 4 - 4 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 $ - $ - $2,308 Liabilities RMB warrants - 55 - 55 |
Employee Stock Compensation P28
Employee Stock Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Grant Date Fair Value | Grant Date 8/15/14 Option grant date price (Cdn$) $1.60 Options granted 1,990,000 Expected life years 5.0 Expected volatility 66% Risk free interest rate 1.6% Weighted average fair value $0.81 Grant date fair value $1,618,000 |
Summary Stock Options | 2015 2014 Weighted Weighted Average Aggregate Average Aggregate Exercise Intrinsic Exercise Intrinsic Options Price (Cdn$) Value(1) Options Price (Cdn)$ Value(1) 2006 Plan Outstanding, beginning of year 2,348,000 $1.66 2,419,000 $2.22 Granted - - 1,990,000 1.60 Exercised - - - - Cancelled/expired (2)(3) (2,188,000) 1.66 (2,061,000) 2.31 Forfeited (120,000) 1.60 - - Outstanding, end of year 40,000 $1.60 $ - 2,348,000 $1.66 $ - Exercisable, end of year 20,000 $1.60 $ - 814,250 $1.78 $ - 2015 2014 Weighted Weighted Average Aggregate Average Aggregate RSUs/ Exercise Intrinsic Exercise Intrinsic Options Price Value(1) Options Price Value(1) 2013 Plan Outstanding, beginning of year 1,400,000 $0.96 1,400,000 $0.96 Granted - - 50,562 0.89 Exercised - - (50,562) 0.89 Cancelled (2) (1,250,000) 0.94 - - Forfeited (150,000) 1.10 - - Outstanding, end of year - - $ - 1,400,000 $0.96 $ - Exercisable, end of year - - $ - 700,000 $0.96 $ - |
Business and Summary of Signi29
Business and Summary of Significant Accounting Policies - Business - Assets and Liabilities Discontinued Operations (Details) $ in Thousands | Dec. 31, 2014USD ($) |
Accounting Policies [Abstract] | |
Cash and cash equivalents | $ 382 |
Other current assets | 12 |
Current assets | 394 |
Mineral properties, net | 14,641 |
Other assets | 982 |
Noncurrent assets | 15,623 |
Total assets | 16,017 |
Accounts payable | 201 |
Deferred revenue | 7,000 |
Total liabilities | $ 7,201 |
Business and Summary of Signi30
Business and Summary of Significant Accounting Policies - Business - Gain on Sale Discontinued Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Accounting Policies [Abstract] | ||
Proceeds from sale of MH-LLC | $ 24,000 | |
Net assets and liabilities disposed of | 9,998 | |
Non-controlling interest | 256 | |
Expenses of sale of MH-LLC | 439 | |
Gain on sale of discontinued operations, before tax | 13,307 | |
Income tax expense | 998 | |
Gain on sale of discontinued operations | $ 12,309 |
Business and Summary of Signi31
Business and Summary of Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Aug. 25, 2015 | Aug. 05, 2015 | Feb. 22, 2012 | |
Accounting Policies [Abstract] | ||||||
Gross proceeds on sale of discontinued operations | $ 30,000 | |||||
Interest in related party transaction | 80.00% | |||||
Solitario portion of proceeds | 24,000 | |||||
DHI portion of proceeds | 6,000 | |||||
Broker and professional service fees on sale of discontinued operations | $ 439 | |||||
Repayment of funds borrowed pursuant to a facility agreement | $ 5,000 | |||||
Interest on repayment of borrowing | $ 7 | |||||
Fee for loan extention | $ 50 | |||||
Potentially dilutive shares related to outstanding common stock options | 40,000 | 3,748,000 | ||||
RMB warrants excluded from calculation of diluted loss per share | 1,624,748 | 1,624,748 |
Mineral Properties - Mineral Pr
Mineral Properties - Mineral Properties - Investment in Mineral Property (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
La Promesa (Peru) | ||
Exploration | $ 5 | $ 5 |
Norcan (Mexico) | ||
Exploration | 6 | 6 |
Aconchi (Mexico) | ||
Exploration | 5 | 5 |
Canta Colorado (Peru) | ||
Exploration | $ 3 | $ 3 |
Mineral Properties - Mineral 33
Mineral Properties - Mineral Properties - Capitalized Development Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Abstract] | ||
Development expenditures | $ 692 | $ 1,678 |
Capitalized interest | 493 | 633 |
Property payments | 190 | 250 |
Capitalized depreciation | 7 | 21 |
Total capitalized costs | $ 1,382 | $ 2,582 |
Mineral Properties - Mineral 34
Mineral Properties - Mineral Properties - Exploration Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Abstract] | ||
Geologic and field expenses | $ 31 | $ 197 |
Administrative | 58 | 82 |
Total exploration expense | $ 89 | $ 279 |
Mineral Properties (Details Nar
Mineral Properties (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Abstract] | ||
Issuance of common shares issued to leaseholders | 66,500 | 35,000 |
Fair value of shares issued to leaseholders | $ 51 | $ 38 |
Capitalized advance royalty payments to leaseholder | 300 | |
Joint venture revenue | 200 | |
Reduction in remaining interest of PBM | 153 | |
Mineral property write-downs | $ 20 |
Marketable Equity Securities -
Marketable Equity Securities - MES - Investment Kinross Gold Shares (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Investments [Abstract] | ||
Shares | 100,000 | 480,000 |
Fair value | ||
Current assets | $ 182 | $ 1,354 |
Marketable Equity Securities 37
Marketable Equity Securities - MES - Sales of Kinross Gold Shares (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Investments [Abstract] | ||
Shares sold | 380,000 | 120,000 |
Proceeds | $ 809 | $ 556 |
Gain on sale | $ 541 | $ 472 |
Marketable Equity Securities 38
Marketable Equity Securities - Marketable Equity Securities and Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Investments [Abstract] | ||
Marketable equity securities at fair value | $ 202 | $ 2,308 |
Cost | 91 | 1,870 |
Accumulated other comprehensive income for unrealized holding gains | $ 111 | 438 |
Deferred taxes on accumulated other comprehensive income for unrealized holding gains | (1,558) | |
Accumulated other comprehensive income (loss) | $ 111 | $ (1,120) |
Marketable Equity Securities 39
Marketable Equity Securities - Changes in Marketable Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Investments [Abstract] | ||
Gross cash proceeds | $ 809 | $ 556 |
Cost | 1,778 | 84 |
Gross (loss) gain on sale included in earnings during the period | $ (969) | $ 472 |
Deferred taxes on gross gain on sale included in earnings | ||
Reclassification adjustment to unrealized gain (loss) in other comprehensive income for net loss (gain) included in earnings | $ 969 | $ (472) |
Gross unrealized holding loss arising during the period included in other comprehensive loss. | (1,296) | $ (1,108) |
Clearing of disproportionate tax effect for deferred taxes on unrealized holding losses included in other comprehensive loss | 1,558 | |
Net unrealized holding gain (loss) | 262 | $ (1,108) |
Other comprehensive income (loss) from marketable equity securities | $ 1,231 | $ (1,580) |
Marketable Equity Securities (D
Marketable Equity Securities (Details Narrative) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($)shares | |
Investments [Abstract] | |
Shares of Ely Gold stock transferred | shares | 15,732,274 |
Loss on transfer of Ely stock | $ 1,510,000 |
Fair value of other marketable securities | $ 20 |
Other Assets - Other Assets (De
Other Assets - Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Furniture and Fixtures, net of accumulated depreciation | $ 41 | $ 51 |
Exploration bonds and other assets | $ 4 | 4 |
Deferred offering costs RMB Loan | 126 | |
Total other assets | $ 45 | $ 181 |
Short Term Debt Summary (Detail
Short Term Debt Summary (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
RMB Loan Borrowing | ||
Beginning balance | $ 5,000 | $ 3,500 |
Borrowing | $ 1,500 | |
Amortization of discount to interest cost | ||
Ending balance | $ 5,000 | |
RMB Warrant Discount | ||
Beginning balance | $ (139) | $ (356) |
Borrowing | ||
Amortization of discount to interest cost | $ 139 | $ 217 |
Ending balance | (139) | |
RMB Short Term Debt | ||
Beginning balance | $ 4,861 | 3,144 |
Borrowing | 1,500 | |
Amortization of discount to interest cost | $ 139 | 217 |
Ending balance | $ 4,861 |
Short Term Debt - Short Term De
Short Term Debt - Short Term Debt Interest (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Disclosure [Abstract] | ||
Interest paid in cash | $ 228 | $ 217 |
Amortization of the RMB Warrants discount | 139 | 217 |
Amortization of RMB deferred financing costs | 126 | 195 |
Total interest expense related to the RMB Loan | $ 493 | 629 |
UBS secured credit line | 4 | |
Total interest expense | $ 493 | $ 633 |
Short Term Debt (Details Narrat
Short Term Debt (Details Narrative) $ in Thousands | 12 Months Ended |
Dec. 31, 2014USD ($) | |
Debt Disclosure [Abstract] | |
UBS secured line of credit paid off | $ 802,000 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Current: | ||
Federal | ||
State | ||
Foreign | ||
Deferred: | ||
Federal | $ 662 | |
State | $ (102) | |
Foreign | ||
Income tax expense | $ 560 |
Income Taxes - Income Tax Exp46
Income Taxes - Income Tax Expense in Financial Statements (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Continuing Operations | $ 560 | |
Discontinued Operations | 998 | |
Other Comprehensive Income | $ (1,558) | |
Total Income tax expense |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Loss carryovers | $ 6,982 | $ 11,168 |
Deferred gain | 2,376 | |
Stock option compensation expense | $ 7 | 350 |
Royalty | 1,482 | $ 1,387 |
Unrealized loss on derivative securities | $ 38 | |
Earnings in Unconsolidated Subsidiary | $ 865 | |
Other | $ 105 | 105 |
Valuation allowance | (8,571) | (12,431) |
Total deferred tax assets | $ 43 | 3,820 |
Deferred tax liabilities: | ||
Unrealized gain on derivative securities | 238 | |
MH-LLC investment | 2,305 | |
Exploration costs | 845 | |
Unrealized gains on marketable equity securities | $ 41 | 152 |
Capitalized interest | 277 | |
Other | $ 2 | 3 |
Total deferred tax liabilities | $ 43 | $ 3,820 |
Net deferred tax liabilities |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Expected income tax benefit | $ (976) | $ (627) |
Reversal of disproportionate Tax Effect in other comprehensive income | 1,558 | |
Equity based compensation | 575 | $ 850 |
Foreign tax rate differences | 3 | (101) |
State income tax | (606) | $ (146) |
True-up of deferred taxes | 267 | |
Tax attributes of disposed subsidiary | 3,941 | |
Previously unrecognized basis in disposed subsidiary | (4,170) | |
Change in valuation allowance | (40) | $ (5) |
MH-LLC investment | 1 | 3 |
Permanent differences and other | 7 | $ 26 |
Income tax expense | $ 560 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Losses from foreign operations | $ 98 | $ 262 |
Before tax gain in discontinued operations | 13,307 | |
Tax expense in discontinued operations net of tax benefit | 998 | |
Tax benefit for release of valuation allowance | 3,930 | |
Other comprehensive income (loss) recognized | (327) | (1,580) |
Valuation allowance offsetting the attendant tax benefit | 111 | $ 535 |
Federal Net Operating Loss carrover | 58 | |
State Net Operating Loss carryover | 1,601 | |
Unused Capital Loss carryovers | $ 5,902 |
Derivative Instruments - Gain o
Derivative Instruments - Gain on derivative instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Gain on derivative instrument | $ 84 | $ 39 |
Derivative Instruments - Deriva
Derivative Instruments - Derivative Instruments - Fair value derivative instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
RMB warrants (other current liabilities) | $ 4 | $ 55 |
Kinross calls (other current liabilities) |
Derivative Instruments (Details
Derivative Instruments (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Liability for fair value of RMB Warrants | $ 4 | $ 55 |
Gain on RMB Warrants | $ 51 | $ 85 |
Fair Value of Financial Instr53
Fair Value of Financial Instruments - Fair Value Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||
Marketable equity securities | $ 202 | $ 2,308 |
Liabilities | ||
RMB warrants | 4 | 55 |
Fair Value, Inputs, Level 1 [Member] | ||
Assets | ||
Marketable equity securities | $ 202 | $ 2,308 |
Liabilities | ||
RMB warrants | ||
Fair Value, Inputs, Level 2 [Member] | ||
Assets | ||
Marketable equity securities | ||
Liabilities | ||
RMB warrants | $ 4 | $ 55 |
Fair Value, Inputs, Level 3 [Member] | ||
Assets | ||
Marketable equity securities | ||
Liabilities | ||
RMB warrants |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Commitments and contingencies | |
Property rentals and option payments estimated for 2016 | $ 341,000 |
Property payments reimbursable by joint venture partners estimated for 2016 | 327,000 |
Annual office rent expense through October 2018 | $ 33,000 |
Employee Stock Compensation P55
Employee Stock Compensation Plans - Employee Stock Compensation Plans - Grant Date Fair Value (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Aug. 15, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Option – grant date price (Cdn$) | $ 1.60 | |
Options granted | 1,990,000 | |
Expected life yrs. grant date August 15, 2014 | 5 years | |
Expected volatility grant date August 15, 2014 | 66.00% | |
Risk free interest rate | 1.60% | |
Weighted average fair value | $ 0.81 | |
Grant date fair value | $ 1,618 |
Employee Stock Compensation P56
Employee Stock Compensation Plans - Employee Stock Compensation Plans - Summary Stock Options (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Options 2006 Plan | ||
Outstanding, beginning of year | 2,348,000 | 2,419,000 |
Outstanding, beginning of year, Per Share | $ 1.66 | $ 2.22 |
Granted | 1,990,000 | |
Granted, Per Share | $ 1.60 | |
Exercised | ||
Exercised, Per Share | ||
Cancelled/Expired/Forfeited (2)(3) | 2,308,000 | 2,061,000 |
Cancelled/Expired/Forfeited (2)(3), Per Share | $ 1.66 | $ 2.31 |
Outstanding, end of year | 40,000 | 2,348,000 |
Outstanding, end of year, Per Share | $ 1.60 | $ 1.66 |
Exercisable, end of year | 20,000 | 814,250 |
Exercisable, end of year, Per Share | $ 1.60 | $ 1.78 |
Options/RSUs 2013 Plan | ||
Outstanding, beginning of year | 1,400,000 | 1,400,000 |
Outstanding, beginning of year, Per Share | $ .96 | $ .96 |
Granted | 50,562 | |
Granted, Per Share | $ .89 | |
Exercised | (50,562) | |
Exercised, Per Share | $ .89 | |
Cancelled/Expired/Forfeited (2)(3) | 1,400,000 | |
Cancelled/Expired/Forfeited (2)(3), Per Share | $ .96 | |
Outstanding, end of year | 1,400,000 | |
Outstanding, end of year, Per Share | $ .96 | |
Exercisable, end of year | 700,000 | |
Exercisable, end of year, Per Share | $ .96 |
Employee Stock Compensation P57
Employee Stock Compensation Plans (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Jun. 18, 2013 | Jun. 27, 2006 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Total options available for grant under option plans | 1,750,000 | 2,800,000 | ||
Stock option expense 2006 Plan | $ 396 | $ 591 | ||
Stock option expense 2013 Plan | $ 170 | $ 188 | ||
Stock quoted market price in Cdn dollars at an exchange of .72120 (2015) and .85593 (2014) | $ .70 | $ 1.05 | ||
Number of option shares voluntarily cancelled from 2006 Plan and 2013 Plan | 3,240,000 | 1,797,000 | ||
Restricted stock units issued from 2013 Omnibus Stock and Incentive Plan | 50,562 | |||
Credit to additional paid-in-capital from issuance of restricted stock units | $ 45 | |||
Intrinsic value of stock on NYSE-MKT | $ 0.49 | $ .92 |