Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Jul. 27, 2017 | |
Document And Entity Information | ||
Entity Registrant Name | SOLITARIO ZINC CORP. | |
Entity Central Index Key | 917,225 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Is Entity a Well-known Seasoned Issuer? | No | |
Is Entity a Voluntary Filer? | Yes | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 58,443,072 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,017 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 169 | $ 119 |
Short-term investments | 12,732 | 15,250 |
Zazu receivable | 1,513 | |
Investments in marketable equity securities, at fair value | 2,017 | 1,339 |
Prepaid expenses and other | 147 | 89 |
Total current assets | 16,578 | 16,797 |
Mineral properties | 46 | 46 |
Other assets | 707 | 771 |
Total assets | 17,331 | 17,614 |
Current liabilities: | ||
Accounts payable | 243 | 124 |
Other | 7 | 2 |
Total current liabilities | 250 | 126 |
Shareholders’ equity: | ||
Preferred stock, $0.01 par value, authorized 10,000,000 shares (none issued and outstanding at June 30, 2017 and December 31, 2016) | ||
Common stock, $0.01 par value, authorized 100,000,000 shares (38,654,889 and 38,693,589 shares, respectively, issued and outstanding at June 30, 2017 and December 31, 2016) | 387 | 387 |
Additional paid-in capital | 55,762 | 55,790 |
Accumulated deficit | (39,931) | (39,401) |
Accumulated other comprehensive income | 863 | 712 |
Total shareholders’ equity | 17,081 | 17,488 |
Total liabilities and shareholders’ equity | $ 17,331 | $ 17,614 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2017 | Dec. 31, 2016 |
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 | 38,654,889 | 38,693,589 |
Common stock, shares outstanding | 38,654,889 | 38,693,589 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Costs, expenses and other: | ||||
Exploration expense | $ 188 | $ 220 | $ 339 | $ 342 |
Depreciation and amortization | 1 | 2 | 2 | 3 |
General and administrative | 560 | 256 | 860 | 698 |
Property abandonment and impairment | 10 | 10 | ||
Total costs, expenses and other | 749 | 488 | 1,201 | 1,053 |
Other income (expense) | ||||
Interest income | 30 | 1 | 76 | 13 |
Gain on sale of marketable equity securities | 30 | 221 | 30 | |
Gain on derivative instruments | 113 | 133 | 285 | 132 |
Loss on sale of other assets | (14) | (14) | ||
Gain on warrant liability | 1 | 4 | ||
Total other income (expense) | 143 | 151 | 582 | 165 |
Loss before income tax | (606) | (337) | (619) | (888) |
Income tax benefit | 89 | 175 | 89 | 237 |
Net loss | $ (517) | $ (162) | $ (530) | $ (651) |
Basic and diluted | $ (0.01) | $ 0 | $ (0.01) | $ (0.02) |
Weighted average shares outstanding (thousands): | ||||
Basic and diluted | 38,655 | 38,988 | 38,678 | 39,166 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Condensed Consolidated Statements Of Comprehensive Income Loss | ||||
Net loss before other comprehensive loss | $ (517) | $ (162) | $ (530) | $ (651) |
Other comprehensive income (loss) | ||||
Unrealized gain on marketable equity securities, net of deferred taxes | 244 | 296 | 151 | 403 |
Comprehensive loss (income) | $ (273) | $ 134 | $ (379) | $ (248) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Operating activities: | ||
Net loss | $ (530) | $ (651) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Unrealized gain on derivative instruments | (285) | (132) |
Depreciation and amortization | 2 | 3 |
Deferred income taxes | (89) | (237) |
Accrued interest income | (13) | |
Gain on warrant liability | (4) | |
Gain on equity security and asset sales (net) | (221) | (16) |
Property abandonment and impairment | 10 | |
Employee stock option expense | 31 | |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other current assets | (36) | 25 |
Accounts payable and other current liabilities | 119 | (29) |
Net cash used in operating activities | (1,053) | (1,000) |
Investing activities: | ||
Sale (purchase) of short-term investments, net | 2,496 | (16,007) |
Loan to Zazu | (1,500) | |
Additions to mineral properties | (40) | |
Purchase of marketable equity securities | (167) | (304) |
Proceeds from sale of marketable equity securities | 259 | 40 |
Sale of derivative instruments | 43 | 45 |
Net cash provided by (used in) investing activities | 1,131 | (16,266) |
Financing activities: | ||
Purchase of common stock for cancellation | (28) | (201) |
Net cash provided by financing activities | (28) | (201) |
Net increase (decrease) in cash and cash equivalents | 50 | (17,467) |
Cash and cash equivalents, beginning of period | 119 | 17,718 |
Cash and cash equivalents, end of period | $ 169 | $ 251 |
Business and Significant Accoun
Business and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Business and Significant Accounting Policies | 1. Business and Significant Accounting Policies Recent developments Purchase of Zazu Subsequent to June 30, 2017, on July 12, 2017, Solitario Zinc Corp. (“Solitario” or the “Company”) completed the acquisition of Zazu Metals Corp. (“Zazu) pursuant to a definitive arrangement agreement between Solitario and Zazu (the "Arrangement Agreement") whereby Solitario agreed to acquire all of the issued and outstanding common shares of Zazu (the "Zazu Shares") by way of a statutory plan of arrangement (the "Arrangement") under the Canada Business Corporations Act Name Change to Solitario Zinc Corp. Solitario shareholders voted at the Annual Meeting in favor of an amendment to Solitario’s Articles of Incorporation to change Solitario’s name to “Solitario Zinc Corp.” from “Solitario Exploration & Royalty Corp.” The name change was subject to the completion of the Acquisition and became effective on July 17, 2017. Subsequent to the Acquisition, Solitario’s mineral property assets are its 39% ownership in the Bongará zinc deposit in Peru and its 50% ownership interest in the Lik zinc deposit (acquired in the Acquisition). Solitario believes the name “Solitario Zinc Corp” reflects the increased focus of the Company on zinc-related assets. Convertible Debenture Financing On April 26, 2017, concurrent with the signing of the Arrangement Agreement, Solitario provided Zazu interim debt financing through a secured convertible debenture issued by Zazu in the principal amount of US$1.5 million (the "Debenture"). The Debenture was secured by way of a general security and pledge agreement on Zazu’s assets and bore interest at a rate of 5% per annum. The Debenture was convertible, at the option of Solitario into Zazu Shares at a price of US$0.22 per Zazu Share. At June 30, 2017, the Debenture, including accrued interest of $13,000, was recorded as a current receivable due from Zazu. Subsequent to June 30, 2017, upon completion of the Acquisition, the Debenture was eliminated in consolidation. Business and company formation Solitario is an exploration stage company with a focus on the acquisition of precious and base metal properties with exploration potential and the development or purchase of royalty interests. Upon the completion of the Acquisition, Solitario intends to shift its focus more toward the acquisition and exploration of zinc-related exploration mineral properties. However, Solitario intends to continue to evaluate for acquisition other mineral properties and hold a portfolio of mineral exploration properties and assets for future sale, joint venture or to create a royalty prior to the establishment of proven and probable reserves. Although Solitario’s mineral properties may be developed in the future by Solitario, through a joint venture or by a third party, Solitario has never developed a mineral property. In addition to focusing on its current assets and the evaluation of mineral properties for acquisition or purchase of royalty interests, Solitario also expects to continue to evaluate potential strategic corporate transactions for the acquisition of new precious and base metal properties and assets with exploration potential or business combinations it believes to be favorable to Solitario. Solitario has recorded revenue in the past from the sale of mineral properties, including the sale of its interest in Mount Hamilton LLC (“MH-LLC”), the owner of the Mount Hamilton project during 2015, joint venture property payments and the sale of a royalty on its former Mt. Hamilton property. Proceeds from the sale or joint venture of Solitario’s properties, although significant, have not historically been a consistent annual source of cash or revenue and would occur, if at all, on an infrequent basis in the future. Solitario currently considers its carried interest in the Bongará project and its interest in the Lik project, acquired in the Acquisition, to be its core mineral property assets. Solitario’s joint venture partner is expected to continue the development and furtherance of the Bongará asset and Solitario will monitor progress at Bongará. Solitario is currently evaluating the exploration and development plans for the Lik project. As of June 30, 2017, Solitario has significant balances of cash and short-term investments that Solitario anticipates using, in part, to further the development of the Lik project and to potentially acquire additional mineral property assets. The The accompanying interim condensed consolidated financial statements of Solitario for the three and six months ended June 30, 2017 are unaudited and are prepared in accordance with accounting principles generally accepted in the United States of America. They do not include all disclosures required by generally accepted accounting principles for annual financial statements, but in the opinion of management, include all adjustments, consisting only of normal recurring items, necessary for a fair presentation. Interim results are not necessarily indicative of results, which may be achieved in the future or for the full year ending December 31, 2017. These financial statements should be read in conjunction with the financial statements and notes thereto which are included in Solitario’s Annual Report on Form 10-K for the year ended December 31, 2016. The accounting policies set forth in those annual financial statements are the same as the accounting policies utilized in the preparation of these financial statements, except as modified for appropriate interim financial statement presentation. Financial reporting The condensed consolidated financial statements include the accounts of Solitario and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. The condensed 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 U.S 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) Solitario’s carrying value of short-term investments; (ii) the recoverability of mineral properties related to its mineral exploration properties and their future exploration potential; (iii) the fair value of stock option grants to employees; (iv) the ability of Solitario to realize its deferred tax assets; (v) Solitario's investment in marketable equity securities; and (vi) the fair value of the Vendetta Mining Corp. (“Vendetta”) warrants Solitario owns. 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 June 30, 2017, a portion of Solitario’s cash and cash equivalents are held in brokerage accounts and foreign banks, which are not covered under the Federal Deposit Insurance Corporation (“FDIC”) rules for the United States. At June 30, 2017, Solitario holds short-term investments in United States Treasury securities (“USTS”) of $9,733,000. Short-term investments As of June 30, 2017, Solitario has $9,733,000 of its current assets in USTS with maturities of 30 days to 16 months. The USTS are recorded at their fair value, based upon quoted market prices. As of June 30, 2017, we have $2,999,000 in separate bank certificates of deposit (“CDs”) each with a maximum value of $250,000, and each of which are covered by FDIC insurance to the full face value of the CDs. At June 30, 2017, the CDs have maturities of between 30 days and 15 months. Solitario’s short-term investments are recorded at their fair value, based upon quoted market prices. The short-term investments are highly liquid and may be sold in their entirety at any time at their quoted market price and are classified as a current asset. 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 Solitario’s mineral properties are capitalized. Solitario capitalizes all of its development expenditures on its projects, subsequent to the completion of a feasibility study. 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”). Solitario acquired its investment in Vendetta units, including the Vendetta Warrants during 2016. Solitario has classified the Vendetta Warrants as derivative instruments under ASC 815 and recorded the Vendetta Warrants (as defined below in Note 4) at their fair value as other assets on the consolidated balance sheet. Changes in fair value of the Vendetta Warrants are recognized in the statement of operations in the period of change as gain or loss on derivative instruments. Solitario has entered into covered calls from time to time on its investment in Kinross Gold Corporation (“Kinross”) marketable equity securities. Solitario has not designated its covered calls as hedging instruments and any changes in the fair value of the covered calls and its Vendetta Warrants are recognized in the statement of operations in the period of the change as gain or loss on derivative instruments. 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 short-term investments in USTS and CDs, its 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. Solitario’s investment in the Vendetta Warrants is carried at fair value as determined by a Black-Scholes model. Marketable equity securities Solitario's investments in marketable equity securities are classified as available-for-sale and are carried at fair value, which is based upon quoted prices of the securities owned. Solitario records investments in marketable equity securities as available-for-sale for investments in publicly traded marketable equity securities for which it does not exercise significant control and where Solitario has no representation on the board of directors of those companies and exercises no control over the management of those companies. The cost of marketable equity securities sold is determined by the specific identification method. Changes 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 during 2017 and 2016 have been conducted primarily in Peru, a portion of the payments under the land, leasehold and exploration agreements of Solitario are denominated in United States dollars. Realized foreign currency gains and losses are included in the results of operations in the period in which they occur. Income taxes Solitario accounts for income taxes in accordance with ASC 740, “Accounting for Income Taxes” (“ASC 740”). 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. Earnings per share The calculation of basic and diluted earnings (loss) per share is based on the weighted average number of shares of common stock outstanding during the three and six months ended June 30, 2017 and 2016. Potentially dilutive shares related to outstanding common stock options of 390,000 for the three and six months ended June 30, 2016 were excluded from the calculation of diluted earnings (loss) per share because the effects were anti-dilutive. There were no similar potentially dilutive securities outstanding during the three and six months ended June 30, 2017. Employee stock compensation and incentive plans Solitario classifies all of its stock options as equity options in accordance with the provisions of ASC 718, “Compensation – Stock Compensation.” Recent accounting pronouncements In May 2014, the FASB issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers (Topic 606, In February 2016, the FASB issued ASU 2016-02, “Leases” (“ASU No. 2016-02”), which will require lessees to recognize a right-of-use asset and a lease liability for all leases that are not short-term in nature. For a lessor, the accounting applied is also largely unchanged from previous guidance. The new rules will be effective for Solitario in the first quarter of 2019. Solitario does not anticipate early adoption. Solitario does not expect the adoption of ASU No. 2016-02 to materially change its current accounting methods and therefore it does not expect the adoption to have a material impact on its consolidated financial position or results of operations. In January 2016, the FASB issued ASU No 2016-01, Financial Instruments – Recognition and Measurement of Financial Assets and Financial Liabilities (Topic 825) (“ASU No. 2016-01”) . |
Mineral Property
Mineral Property | 6 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Mineral Property | 2. Mineral Property The following table details Solitario’s investment in Mineral Property: (in thousands) June 30, December 31, 2017 2016 Exploration La Promesa (Peru) $ 6 $ 6 Montana Royalty property (US) 40 40 Total exploration mineral property $46 $46 All exploration costs on our other exploration properties, none of which have proven and probable reserves, including any additional costs incurred for subsequent lease payments or exploration activities related to our projects are expensed as incurred. Discontinued projects Solitario dropped its royalty interests in the Aconchi and Norcan exploration properties in Mexico during the six months ended June 30, 2017, however, there were no capitalized mineral property costs related to these royalties and Solitario did not record any mineral property write-downs during the three and six months ended June 30, 2017. During the three and six months ended June 30, 2016, Solitario closed its exploration office in Mexico. Solitario recorded a mineral property write-down of $10,000 related to the Norcan and Aconchi properties during the three and six months ended June 30, 2016. In addition, Solitario recorded a loss on other assets in Mexico of $14,000 related to the exit from its exploration activities in Mexico during the three and six months ended June 30, 2016. Exploration expense The following items comprised exploration expense: (in thousands) Three months ended Six months ended 2017 2016 2017 2016 Geologic and field expenses $99 $172 $121 $248 Administrative 89 48 218 94 Total exploration costs $ 188 $ 220 $ 339 $ 342 |
Marketable Equity Securities
Marketable Equity Securities | 6 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
Marketable Equity Securities | 3. Marketable Equity Securities Solitario's investments in marketable equity securities are classified as available-for-sale and are carried at fair value, which is based upon quoted prices of the securities owned. The cost of marketable equity securities sold is determined by the specific identification method. Changes in market value are recorded in accumulated other comprehensive income or loss within shareholders' equity, unless a decline in market value is considered other than temporary, in which case the decline is recognized as a loss in the consolidated statement of operations. The following tables summarize Solitario’s marketable equity securities and accumulated other comprehensive income related to its marketable equity securities: (in thousands) June 30, 2017 December 31, 2016 Marketable equity securities at fair value $2,017 $1,339 Cost 712 274 Accumulated other comprehensive (loss) income for 1,305 1,065 Deferred taxes on accumulated other comprehensive (442) (353) Accumulated other comprehensive income $863 $ 712 The following table represents changes in marketable equity securities. (in thousands) Three months ended Six months ended 2017 2016 2017 2016 Gross cash proceeds $ - $ 40 $ 259 $ 40 Cost - 10 38 10 Gross gain on sale included in earnings during the period - 30 221 30 Deferred taxes on gross gain on sale included in earnings - (11) - (11) Reclassification adjustment to unrealized gain in other - (19) (221) (19) Gross unrealized holding (loss) gain arising during the period 333 501 461 670 Deferred taxes on unrealized holding (loss) gain included in (89) (186) (89) (248) Net unrealized holding (loss) gain 244 315 372 422 Other comprehensive income (loss) from marketable equity securities $244 $(296) $151 $403 |
Other Assets
Other Assets | 6 Months Ended |
Jun. 30, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | 4. Other Assets The following items comprised other assets: (in thousands) June 30, December 31, 2017 2016 Furniture and Fixtures, net of accumulated depreciation $ 30 $ 32 Vendetta Mining Corp warrants 673 735 Exploration bonds and other assets 4 4 Total other assets $ 707 $ 771 During the six months ended June 30, 2016 Solitario purchased 7,240,000 units of Vendetta for $289,000. Each unit included one common share and one purchase warrant which allows the holder to purchase one share of Vendetta common stock at a price of Cdn$0.10 per share for a period of two years (the “Vendetta Warrants”). As of June 30, 2017, the Vendetta shares are carried at their fair value and included in marketable equity securities, see Note 3, above. The Vendetta Warrants are carried at their fair value, based upon a Black-Scholes valuation model. |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | 5. Derivative Instruments Vendetta Warrants During the three and six months ended June 30, 2017, Solitario exercised 2,240,000 of its Vendetta Warrants and received 2,240,000 Vendetta common shares, by paying $167,000 (Cdn$224,000) to Vendetta. As a result, as of June 30, 2017, Solitario owns 5,000,000 Vendetta Warrants, which are carried at fair value, based upon a Black-Scholes model. During the three and six months ended June 30, 2017, Solitario recorded a gain on derivative instruments of $99,000 and $247,000, related to the Vendetta Warrants. During the three and six months ended June 30, 2016, Solitario recorded a gain on derivative instruments of $215,000 related to the Vendetta Warrants. RMB Warrants The warrants originally issued by Solitario in 2012 to RMB Australia Holdings Limited (the “RMB Warrants”) entitled the holder to purchase a total of 1,624,748 shares of Solitario common stock. The RMB Warrants had an exercise price of $1.54 per share and expired on August 21, 2016. Solitario recorded a gain on the RMB Warrants of $3,000 during the three and six months ended June 30, 2016. Covered Call Options From time to time Solitario has sold covered call options against its holdings of Kinross. The business purpose of selling covered calls is to provide additional liquidity on a limited portion of shares of Kinross that Solitario may sell in the near term, which is generally defined as less than one year. Solitario has not designated its covered calls as hedging instruments and records gains or loss on the covered call in the period of the change. Solitario recorded the following gain (loss) on derivative instruments: (in thousands) Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 (Loss) gain on Kinross calls $ 14 $ (82) $ 38 $ (83) Gain on Vendetta Warrants 99 215 247 215 Total $113 $133 $285 $132 The following table provides the location and amount of the fair values of Solitario's derivative instruments presented in the consolidated balance sheets as of June 30, 2017 and December 31, 2016: Derivatives June 30, December 31, (in thousands) Balance Sheet Location 2017 2016 Vendetta warrants Other assets $673 $735 Kinross calls Other current liabilities $ 7 $ 2 |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 6. Fair Value For certain of Solitario’s financial instruments, including cash and cash equivalents, short-term investments and payables, the carrying amounts approximate fair value due to their short term maturities. Solitario’s marketable equity securities are carried at their estimated fair value primarily based on quoted market prices. The Vendetta Warrants are carried at their estimated fair value at June 30, 2017 of $673,000; based upon a Black-Scholes valuation model, see Note 4, “Other Assets,” above. The RMB Warrants are carried at their estimated fair value based on a Black-Scholes option pricing model, see Note 5, “Derivative Instruments,” above. Solitario accounts for its financial instruments under ASC 820. ASC 820 establishes a framework for measuring fair value and requires enhanced disclosures about fair value measurements. ASC 820 clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. ASC 820 also requires disclosure about how fair value is determined for assets and liabilities and establishes a hierarchy for which these assets and liabilities must be grouped, based on significant levels of inputs as follows: · Level 1 · Level 2 · Level 3 The determination of where assets and liabilities fall within this hierarchy is based upon the lowest level of input that is significant to the fair value measurement. During the three and six months ended June 30, 2017 there were no reclassifications in financial assets or liabilities between Level 1, 2 or 3 categories. The following is a listing of Solitario’s financial assets and liabilities required to be measured at fair value on a recurring basis and where they are classified within the hierarchy as of June 30, 2017: (in thousands) Level 1 Level 2 Level 3 Total Assets Marketable equity securities $2,017 $ - $ $2,017 United States Treasury securities 9,733 - - 9,733 Bank Certificates of Deposit 2,999 - - 2,999 Vendetta Warrants - 673 - 673 Liabilities Kinross covered calls 7 - - 7 The following is a listing of Solitario’s financial assets and liabilities required to be measured at fair value on a recurring basis and where they are classified within the hierarchy as of December 31, 2016: (in thousands) Level 1 Level 2 Level 3 Total Assets Marketable equity securities $1,339 $ - $ - $1,339 United States Treasury securities 7,751 - - 7,751 Bank Certificates of Deposit 7,499 - - 7,499 Vendetta Warrants 735 735 Liabilities Kinross calls 2 - - 2 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7. Income Taxes Solitario accounts for income taxes in accordance with ASC 740. Under ASC 740, income taxes are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently due plus deferred taxes related to certain income and expenses recognized in different periods for financial and income tax reporting purposes. Deferred tax assets and liabilities represent the future tax return consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. Deferred taxes are also recognized for operating losses and tax credits that are available to offset future taxable income and income taxes, respectively. A valuation allowance is provided if it is more likely than not that some portion or all of the deferred tax assets will not be realized. At June 30, 2017 and December 31, 2016, Solitario has recorded no net deferred tax assets. A valuation allowance, which fully offsets the net deferred tax assets, has been recorded because it is more likely than not that the Company will not realize some portion or all of its deferred tax assets. The Company continually assesses both positive and negative evidence to determine whether it is more likely than not that the deferred tax assets can be realized prior to their expiration. During the three and six months ended June 30, 2017, Solitario recorded deferred tax benefits of $89,000 in the statement of operations and recorded a deferred tax expense of the same amount to other comprehensive income related to unrealized gains on marketable equity securities. During the three and six months ended June 30, 2016, Solitario recorded deferred tax benefits of $175,000 and $237,000, respectively, in the statement of operations and recorded a deferred tax expense of the same amount to other comprehensive income related to unrealized gains on marketable equity securities. |
Employee Stock Compensation Pla
Employee Stock Compensation Plans | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employee Stock Compensation Plans | 8. Employee Stock Compensation Plans Solitario had no outstanding options or equity awards at June 30, 2017 or December 31, 2016. Solitario recognizes stock option compensation expense on the date of grant for 25% of the grant date fair value, and subsequently, based upon a straight line amortization of the unvested grant date fair value of each of its outstanding options. During the three and six months ended June 30, 2016, Solitario recorded $29,000 and $31,000, respectively, of stock option expense for the amortization of grant date fair value with a credit to additional paid-in-capital. Solitario recorded no stock option expense during the three and six months ended June 30, 2017. The 2006 Plan On June 27, 2006, Solitario’s shareholders approved the 2006 Stock Option Incentive Plan (the “2006 Plan”). On June 27, 2016, the 2006 Plan terminated and as of that date no additional options may be granted pursuant to the 2006 Plan. During the three and six months ended June 30, 2016, Solitario granted options to acquire 350,000 shares of common stock under the 2006 Plan. By their initial terms the options had a five-year term, vested 25% on the date of grant and were to vest 25% on each of the next three anniversary dates of the date of grant, and had a grant date fair value based upon a Black-Scholes model with a 63% expected volatility, and 1% risk-free interest rate. These options were subsequently surrendered by the holders and cancelled on August 24, 2016. No options were exercised during the three and six months ended June 30, 2017 and 2016 under the 2006 Plan. The 2013 Plan On June 18, 2013 Solitario’s shareholders approved the 2013 Solitario Exploration & Royalty Corp. Omnibus Stock and Incentive Plan (the “2013 Plan”). On June 29, 2017, Solitario shareholders approved an amendment to the 2013 Plan, which increased the number of shares available of common stock for issuance under the 2013 Plan from 1,750,000 to 5,750,000. Under the terms of the 2013 Plan, the Board of Directors may grant 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. There were no stock grants or awards or exercises of options or awards under the 2013 Plan during the three and six months ended June 30, 2017 and 2016. |
Shareholders' Equity andAccumul
Shareholders' Equity andAccumulated Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Shareholders' Equity andAccumulated Other Comprehensive Income | 9. Shareholders’ Equity and Accumulated Other Comprehensive Income (in thousands, except Accumulated Share amounts) Common Common Additional Other Total Stock Stock Paid-in Accumulated Comprehensive Shareholders’ Shares Amount Capital Deficit Income Equity Balance at December 31, 2016 38,693,589 $387 $55,790 $(39,401) $712 $17,488 Purchase of shares for cancellation (8,400) - (6) - - (6) Net loss - - - (13) - (13) Net unrealized loss on marketable equity securities - - - - (93) (93) Balance at March 31, 2017 38,685,189 $387 $55,784 $(39,414) $619 $17,376 Purchase of shares for cancellation (30,300) - (22) - - (22) Net loss - - - (517) - (517) Net unrealized gain on marketable equity securities - - - - 244 244 Balance at June 30, 2017 38,654,889 $387 $55,762 $(39,931) $863 $17,081 Share Repurchase Program On October 28, 2015, Solitario’s Board of Directors approved a share repurchase program that initially authorized Solitario to purchase up to two million shares of its outstanding common stock through December 31, 2016. During 2016, Solitario’s Board of Directors extended the expiration date of the share repurchase program through December 31, 2017. During the three and six months ended June 30, 2017, Solitario purchased 30,300 and 38,700 shares of Solitario common stock, respectively, for an aggregate purchase price of $22,000 and $28,000, respectively. During the three and six months ended June 30, 2016, Solitario purchased 232,000 and 406,000 shares of Solitario common stock, respectively, for an aggregate purchase price of $118,000 and $201,000, respectively. As of June 30, 2017, Solitario has purchased a total of 659,300 shares for an aggregate purchase price of $343,000 under the share repurchase program since its inception. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | 10. Subsequent Events As further described in Note 1 under the heading “ Recent developments Additionally, in connection with the closing the Acquisition Solitario amended its Articles of Incorporation to change its name to “Solitario Zinc Corp.”, and an amendment to the 2013 Plan became effective, which among other things, increased the number of shares of Solitario common stock reserved under the 2013 Plan to 5,750,000 shares. |
Business and Significant Acco17
Business and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
1. Business and Significant Accounting Policies | 1. Business and Significant Accounting Policies Recent developments Purchase of Zazu Subsequent to June 30, 2017, on July 12, 2017, Solitario Zinc Corp. (“Solitario” or the “Company”) completed the acquisition of Zazu Metals Corp. (“Zazu) pursuant to a definitive arrangement agreement between Solitario and Zazu (the "Arrangement Agreement") whereby Solitario agreed to acquire all of the issued and outstanding common shares of Zazu (the "Zazu Shares") by way of a statutory plan of arrangement (the "Arrangement") under the Canada Business Corporations Act Name Change to Solitario Zinc Corp. Solitario shareholders voted at the Annual Meeting in favor of an amendment to Solitario’s Articles of Incorporation to change Solitario’s name to “Solitario Zinc Corp.” from “Solitario Exploration & Royalty Corp.” The name change was subject to the completion of the Acquisition and became effective on July 17, 2017. Subsequent to the Acquisition, Solitario’s mineral property assets are its 39% ownership in the Bongará zinc deposit in Peru and its 50% ownership interest in the Lik zinc deposit (acquired in the Acquisition). Solitario believes the name “Solitario Zinc Corp” reflects the increased focus of the Company on zinc-related assets. Convertible Debenture Financing On April 26, 2017, concurrent with the signing of the Arrangement Agreement, Solitario provided Zazu interim debt financing through a secured convertible debenture issued by Zazu in the principal amount of US$1.5 million (the "Debenture"). The Debenture was secured by way of a general security and pledge agreement on Zazu’s assets and bore interest at a rate of 5% per annum. The Debenture was convertible, at the option of Solitario into Zazu Shares at a price of US$0.22 per Zazu Share. At June 30, 2017, the Debenture, including accrued interest of $13,000, was recorded as a current receivable due from Zazu. Subsequent to June 30, 2017, upon completion of the Acquisition, the Debenture was eliminated in consolidation. Business and company formation Solitario is an exploration stage company with a focus on the acquisition of precious and base metal properties with exploration potential and the development or purchase of royalty interests. Upon the completion of the Acquisition, Solitario intends to shift its focus more toward the acquisition and exploration of zinc-related exploration mineral properties. However, Solitario intends to continue to evaluate for acquisition other mineral properties and hold a portfolio of mineral exploration properties and assets for future sale, joint venture or to create a royalty prior to the establishment of proven and probable reserves. Although Solitario’s mineral properties may be developed in the future by Solitario, through a joint venture or by a third party, Solitario has never developed a mineral property. In addition to focusing on its current assets and the evaluation of mineral properties for acquisition or purchase of royalty interests, Solitario also expects to continue to evaluate potential strategic corporate transactions for the acquisition of new precious and base metal properties and assets with exploration potential or business combinations it believes to be favorable to Solitario. Solitario has recorded revenue in the past from the sale of mineral properties, including the sale of its interest in Mount Hamilton LLC (“MH-LLC”), the owner of the Mount Hamilton project during 2015, joint venture property payments and the sale of a royalty on its former Mt. Hamilton property. Proceeds from the sale or joint venture of Solitario’s properties, although significant, have not historically been a consistent annual source of cash or revenue and would occur, if at all, on an infrequent basis in the future. Solitario currently considers its carried interest in the Bongará project and its interest in the Lik project, acquired in the Acquisition, to be its core mineral property assets. Solitario’s joint venture partner is expected to continue the development and furtherance of the Bongará asset and Solitario will monitor progress at Bongará. Solitario is currently evaluating the exploration and development plans for the Lik project. As of June 30, 2017, Solitario has significant balances of cash and short-term investments that Solitario anticipates using, in part, to further the development of the Lik project and to potentially acquire additional mineral property assets. The The accompanying interim condensed consolidated financial statements of Solitario for the three and six months ended June 30, 2017 are unaudited and are prepared in accordance with accounting principles generally accepted in the United States of America. They do not include all disclosures required by generally accepted accounting principles for annual financial statements, but in the opinion of management, include all adjustments, consisting only of normal recurring items, necessary for a fair presentation. Interim results are not necessarily indicative of results, which may be achieved in the future or for the full year ending December 31, 2017. These financial statements should be read in conjunction with the financial statements and notes thereto which are included in Solitario’s Annual Report on Form 10-K for the year ended December 31, 2016. The accounting policies set forth in those annual financial statements are the same as the accounting policies utilized in the preparation of these financial statements, except as modified for appropriate interim financial statement presentation. Financial reporting The condensed consolidated financial statements include the accounts of Solitario and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. The condensed 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 U.S 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) Solitario’s carrying value of short-term investments; (ii) the recoverability of mineral properties related to its mineral exploration properties and their future exploration potential; (iii) the fair value of stock option grants to employees; (iv) the ability of Solitario to realize its deferred tax assets; (v) Solitario's investment in marketable equity securities; and (vi) the fair value of the Vendetta Mining Corp. (“Vendetta”) warrants Solitario owns. 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 June 30, 2017, a portion of Solitario’s cash and cash equivalents are held in brokerage accounts and foreign banks, which are not covered under the Federal Deposit Insurance Corporation (“FDIC”) rules for the United States. At June 30, 2017, Solitario holds short-term investments in United States Treasury securities (“USTS”) of $9,733,000. Short-term investments As of June 30, 2017, Solitario has $9,733,000 of its current assets in USTS with maturities of 30 days to 16 months. The USTS are recorded at their fair value, based upon quoted market prices. As of June 30, 2017, we have $2,999,000 in separate bank certificates of deposit (“CDs”) each with a maximum value of $250,000, and each of which are covered by FDIC insurance to the full face value of the CDs. At June 30, 2017, the CDs have maturities of between 30 days and 15 months. Solitario’s short-term investments are recorded at their fair value, based upon quoted market prices. The short-term investments are highly liquid and may be sold in their entirety at any time at their quoted market price and are classified as a current asset. 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 Solitario’s mineral properties are capitalized. Solitario capitalizes all of its development expenditures on its projects, subsequent to the completion of a feasibility study. 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”). Solitario acquired its investment in Vendetta units, including the Vendetta Warrants during 2016. Solitario has classified the Vendetta Warrants as derivative instruments under ASC 815 and recorded the Vendetta Warrants (as defined below in Note 4) at their fair value as other assets on the consolidated balance sheet. Changes in fair value of the Vendetta Warrants are recognized in the statement of operations in the period of change as gain or loss on derivative instruments. Solitario has entered into covered calls from time to time on its investment in Kinross Gold Corporation (“Kinross”) marketable equity securities. Solitario has not designated its covered calls as hedging instruments and any changes in the fair value of the covered calls and its Vendetta Warrants are recognized in the statement of operations in the period of the change as gain or loss on derivative instruments. 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 short-term investments in USTS and CDs, its 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. Solitario’s investment in the Vendetta Warrants is carried at fair value as determined by a Black-Scholes model. Marketable equity securities Solitario's investments in marketable equity securities are classified as available-for-sale and are carried at fair value, which is based upon quoted prices of the securities owned. Solitario records investments in marketable equity securities as available-for-sale for investments in publicly traded marketable equity securities for which it does not exercise significant control and where Solitario has no representation on the board of directors of those companies and exercises no control over the management of those companies. The cost of marketable equity securities sold is determined by the specific identification method. Changes 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 during 2017 and 2016 have been conducted primarily in Peru, a portion of the payments under the land, leasehold and exploration agreements of Solitario are denominated in United States dollars. Realized foreign currency gains and losses are included in the results of operations in the period in which they occur. Income taxes Solitario accounts for income taxes in accordance with ASC 740, “Accounting for Income Taxes” (“ASC 740”). 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. Earnings per share The calculation of basic and diluted earnings (loss) per share is based on the weighted average number of shares of common stock outstanding during the three and six months ended June 30, 2017 and 2016. Potentially dilutive shares related to outstanding common stock options of 390,000 for the three and six months ended June 30, 2016 were excluded from the calculation of diluted earnings (loss) per share because the effects were anti-dilutive. There were no similar potentially dilutive securities outstanding during the three and six months ended June 30, 2017. Employee stock compensation and incentive plans Solitario classifies all of its stock options as equity options in accordance with the provisions of ASC 718, “Compensation – Stock Compensation.” Recent accounting pronouncements In May 2014, the FASB issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers (Topic 606, In February 2016, the FASB issued ASU 2016-02, “Leases” (“ASU No. 2016-02”), which will require lessees to recognize a right-of-use asset and a lease liability for all leases that are not short-term in nature. For a lessor, the accounting applied is also largely unchanged from previous guidance. The new rules will be effective for Solitario in the first quarter of 2019. Solitario does not anticipate early adoption. Solitario does not expect the adoption of ASU No. 2016-02 to materially change its current accounting methods and therefore it does not expect the adoption to have a material impact on its consolidated financial position or results of operations. In January 2016, the FASB issued ASU No 2016-01, Financial Instruments – Recognition and Measurement of Financial Assets and Financial Liabilities (Topic 825) (“ASU No. 2016-01”) . |
Mineral Property (Tables)
Mineral Property (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Investment in Mineral Properties | (in thousands) June 30, December 31, 2017 2016 Exploration La Promesa (Peru) $ 6 $ 6 Montana Royalty property (US) 40 40 Total exploration mineral property $46 $46 |
Exploration Expense | (in thousands) Three months ended Six months ended 2017 2016 2017 2016 Geologic and field expenses $99 $172 $121 $248 Administrative 89 48 218 94 Total exploration costs $ 188 $ 220 $ 339 $ 342 |
Marketable Equity Securities (T
Marketable Equity Securities (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
Marketable Equity Securities and Accumulated OCI | (in thousands) June 30, 2017 December 31, 2016 Marketable equity securities at fair value $2,017 $1,339 Cost 712 274 Accumulated other comprehensive (loss) income for 1,305 1,065 Deferred taxes on accumulated other comprehensive (442) (353) Accumulated other comprehensive income $863 $ 712 |
Changes in Marketable Equity Securities | (in thousands) Three months ended Six months ended 2017 2016 2017 2016 Gross cash proceeds $ - $ 40 $ 259 $ 40 Cost - 10 38 10 Gross gain on sale included in earnings during the period - 30 221 30 Deferred taxes on gross gain on sale included in earnings - (11) - (11) Reclassification adjustment to unrealized gain in other - (19) (221) (19) Gross unrealized holding (loss) gain arising during the period 333 501 461 670 Deferred taxes on unrealized holding (loss) gain included in (89) (186) (89) (248) Net unrealized holding (loss) gain 244 315 372 422 Other comprehensive income (loss) from marketable equity securities $244 $(296) $151 $403 |
Other Assets (Tables)
Other Assets (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | (in thousands) June 30, December 31, 2017 2016 Furniture and Fixtures, net of accumulated depreciation $ 30 $ 32 Vendetta Mining Corp warrants 673 735 Exploration bonds and other assets 4 4 Total other assets $ 707 $ 771 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Gain on Derivative Instruments | (in thousands) Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 (Loss) gain on Kinross calls $ 14 $ (82) $ 38 $ (83) Gain on Vendetta Warrants 99 215 247 215 Total $113 $133 $285 $132 |
Fair Value Derivative Instruments | Derivatives June 30, December 31, (in thousands) Balance Sheet Location 2017 2016 Vendetta warrants Other assets $673 $735 Kinross calls Other current liabilities $ 7 $ 2 |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities Measured at Fair Value | (in thousands) Level 1 Level 2 Level 3 Total Assets Marketable equity securities $2,017 $ - $ $2,017 United States Treasury securities 9,733 - - 9,733 Bank Certificates of Deposit 2,999 - - 2,999 Vendetta Warrants - 673 - 673 Liabilities Kinross covered calls 7 - - 7 The following is a listing of Solitario’s financial assets and liabilities required to be measured at fair value on a recurring basis and where they are classified within the hierarchy as of December 31, 2016: (in thousands) Level 1 Level 2 Level 3 Total Assets Marketable equity securities $1,339 $ - $ - $1,339 United States Treasury securities 7,751 - - 7,751 Bank Certificates of Deposit 7,499 - - 7,499 Vendetta Warrants 735 735 Liabilities Kinross calls 2 - - 2 |
Shareholders' Equity andAccum23
Shareholders' Equity andAccumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Shareholders' Equity | (in thousands, except Accumulated Share amounts) Common Common Additional Other Total Stock Stock Paid-in Accumulated Comprehensive Shareholders’ Shares Amount Capital Deficit Income Equity Balance at December 31, 2016 38,693,589 $387 $55,790 $(39,401) $712 $17,488 Purchase of shares for cancellation (8,400) - (6) - - (6) Net loss - - - (13) - (13) Net unrealized loss on marketable equity securities - - - - (93) (93) Balance at March 31, 2017 38,685,189 $387 $55,784 $(39,414) $619 $17,376 Purchase of shares for cancellation (30,300) - (22) - - (22) Net loss - - - (517) - (517) Net unrealized gain on marketable equity securities - - - - 244 244 Balance at June 30, 2017 38,654,889 $387 $55,762 $(39,931) $863 $17,081 |
Business and Significant Acco24
Business and Significant Accounting Policies (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2016 | Jul. 12, 2017 | Jun. 29, 2017 | Apr. 26, 2017 | |
Accounting Policies [Abstract] | ||||||
Common stock issued for issued and outstanding shares of Zazu - .3572 shares per 1 share of Zazu | 19,788,183 | |||||
Stock options granted to Zazu option holders | 1,782,428 | |||||
Percent of Solitario shareholders voting for issuance of shares | 98.27% | |||||
Estimated purchase price to be recorded in third quarter 2017 | $ 13,900 | |||||
Ownership percentage in Bongara zinc deposit | 39.00% | |||||
Ownership in Lik zinc deposit | 50.00% | |||||
Interim debt financing provided to Zazu at 5% interest | $ 1,500 | |||||
Per share price for debenture convertible to Zazu shares | $ 0.22 | |||||
Accrued interest on Debenture | $ 13 | |||||
Short term investments in U.S. Treasures | 9,733 | |||||
Bank certificates of deposit (maximum 250,000 each) | $ 2,999 | |||||
Potentially dilutive shares related to outstanding common stock options | 390,000 | 390,000 |
Mineral Property - Investment i
Mineral Property - Investment in Mineral Properties (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
La Promesa (Peru) | ||
Exploration | $ 6 | $ 6 |
Montana Royalty property (US) | ||
Exploration | $ 40 | $ 40 |
Mineral Property - Mineral Prop
Mineral Property - Mineral Property Exploration Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | ||||
Geologic and field expenses | $ 99 | $ 172 | $ 121 | $ 248 |
Administrative | 89 | 48 | 218 | 94 |
Total exploration costs | $ 188 | $ 220 | $ 339 | $ 342 |
Mineral Property (Details Narra
Mineral Property (Details Narrative) $ in Thousands | 3 Months Ended |
Jun. 30, 2016USD ($) | |
Property, Plant and Equipment [Abstract] | |
Mineral property write-down | $ 10,000 |
Loss on other assets in Mexico | $ 14,000 |
Marketable Equity Securities -
Marketable Equity Securities - Marketable Equity Securities and Accumulated OCI (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Notes to Financial Statements | ||
Marketable equity securities at fair value | $ 2,017 | $ 1,339 |
Cost | 712 | 274 |
Accumulated other comprehensive (loss) income for unrealized holding gains | 1,305 | 1,065 |
Deferred taxes on accumulated other comprehensive income for unrealized holding gains | (442) | (353) |
Accumulated other comprehensive income | $ 863 | $ 712 |
Marketable Equity Securities 29
Marketable Equity Securities - Changes in Marketable Equity Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Notes to Financial Statements | ||||
Gross cash proceeds | $ 40 | $ 259 | $ 40 | |
Cost | 10 | 38 | 10 | |
Gross gain on sale included in earnings during the period | 30 | 221 | 30 | |
Deferred taxes on gross gain on sale included in earnings | (11) | (11) | ||
Reclassification adjustment to unrealized gain in other comprehensive income for net gains included in earnings | (19) | (221) | (19) | |
Gross unrealized holding (loss) gain arising during the period included in other comprehensive loss | 333 | 501 | 461 | 670 |
Deferred taxes on unrealized holding (loss) gain included in other comprehensive loss | (89) | (186) | (89) | (248) |
Net unrealized holding (loss) gain | 244 | 315 | 372 | 422 |
Other comprehensive income (loss) from marketable equity securities | $ 244 | $ (296) | $ 151 | $ 403 |
Other Assets - Other Assets (De
Other Assets - Other Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Furniture and Fixtures, net of accumulated depreciation | $ 30 | $ 32 |
Vendetta Mining Corp warrants | 673 | 735 |
Exploration bonds and other assets | 4 | 4 |
Total other assets | $ 707 | $ 771 |
Other Assets (Details Narrative
Other Assets (Details Narrative) $ in Thousands | 6 Months Ended |
Jun. 30, 2016USD ($)shares | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Units of Vendetta | shares | 7,240,000 |
Price for units of Vendetta at Cdn$0.10 per unit purchased | $ | $ 289,000 |
Derivative Instruments - Gain o
Derivative Instruments - Gain on Derivative Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
(Loss) gain on Kinross calls | $ 14 | $ (82) | $ 38 | $ (83) |
Gain on Vendetta Warrants | 99 | 215 | 247 | 215 |
Total | $ 113 | $ 133 | $ 285 | $ 132 |
Derivative Instruments - Deriva
Derivative Instruments - Derivative Instruments Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Vendetta warrants (other assets) | $ 673 | $ 735 |
Kinross calls (other current liabilities) | $ 7 | $ 0 |
Derivative Instruments (Details
Derivative Instruments (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Aug. 21, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||
Vendetta Warrants exercised for common shares | 2,240,000 | 2,240,000 | |||
Price to exercise Vendetta Warrants (Cdn$224,000) | $ 167 | $ 167 | |||
Gain on derivative instruments related to 5,000,000 Vendetta Warrants | 99 | $ 215 | 247 | $ 215 | |
RMB Warrants at $1.54 per share expired | 1,624,748 | ||||
Gain on RMB Warrants | $ 113 | $ 3 | $ 285 | $ 3 |
Fair Value - Financial Assets a
Fair Value - Financial Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Assets | ||
Vendetta Warrants | $ 673 | |
Level 1 | ||
Assets | ||
Marketable equity securities | 2,017 | $ 1,339 |
United States Treasury securities | 9,733 | 7,751 |
Bank Certificates of Deposit | 2,999 | 7,499 |
Vendetta Warrants | ||
Liabilities | ||
Kinross covered calls | 7 | 2 |
Level 2 | ||
Assets | ||
Marketable equity securities | ||
United States Treasury securities | ||
Bank Certificates of Deposit | ||
Vendetta Warrants | 673 | 735 |
Liabilities | ||
Kinross covered calls | ||
Level 3 | ||
Assets | ||
Marketable equity securities | ||
United States Treasury securities | ||
Bank Certificates of Deposit | ||
Vendetta Warrants | ||
Liabilities | ||
Kinross covered calls |
Fair Value (Details Narrative)
Fair Value (Details Narrative) $ in Thousands | Jun. 30, 2017USD ($) |
Fair Value Disclosures [Abstract] | |
Estimated fair value Vendetta Warrants | $ 673 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Deferred tax benefits | $ 89 | $ 175 | $ 89 | $ 237 |
Employee Stock Compensation P38
Employee Stock Compensation Plans (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2016 | Jun. 29, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Stock option expense for amortization of grant date fair value | $ 29 | $ 31 | |
Options granted to acquire shares of common stock 2006 Plan | 350,000 | 350,000 | |
Increase in shares available for issuance from 1,750,000 2013 Plan | 5,750,000 |
Shareholders Equity and Accumul
Shareholders Equity and Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Common Stock | |||||
Beginning balance, value | $ 387 | $ 387 | $ 387 | ||
Beginning balance, shares | 38,689,159 | 38,693,589 | 38,693,589 | ||
Purchase of shares for cancellation, shares | (30,300) | (8,400) | |||
Ending balance, value | $ 387 | $ 387 | $ 387 | ||
Ending balance, shares | 38,654,889 | 38,689,159 | 38,654,889 | ||
Additional Paid-In Capital | |||||
Beginning balance, value | $ 55,784 | $ 55,790 | $ 55,790 | ||
Purchase of shares for cancellation, value | (22) | (6) | |||
Ending balance, value | 55,762 | 55,784 | 55,762 | ||
Retained Earnings / Accumulated Deficit | |||||
Beginning balance, value | (39,414) | (39,401) | (39,401) | ||
Net loss | (517) | (13) | |||
Ending balance, value | (39,931) | (39,414) | (39,931) | ||
Other Comprehensive Income / Loss | |||||
Beginning balance, value | 619 | 712 | 712 | ||
Net unrealized gain (loss) on marketable equity securities | 244 | (93) | |||
Ending balance, value | 863 | 619 | 863 | ||
Beginning balance, value | 17,376 | 17,488 | $ 17,488 | ||
Purchase of shares for cancellation, value | $ (22) | (6) | |||
Purchase of shares for cancellation, shares | 30,300 | 232,000 | 38,700 | 406,000 | |
Net loss | $ (517) | (13) | |||
Net unrealized gain (loss) on marketable equity securities | 244 | (93) | |||
Ending balance, value | $ 17,081 | $ 17,376 | $ 17,081 |
Shareholders' Equity andAccum40
Shareholders' Equity andAccumulated Other Comprehensive Income (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Equity [Abstract] | ||||
Shares purchased | 30,300 | 232,000 | 38,700 | 406,000 |
Aggregate purchase price of shares purchased | $ 22 | $ 118 | $ 28 | $ 201 |
Total shares repurchased since program's inception | 659,300 | |||
Aggregate purchase price of shares repurchased since program's inception | $ 343 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - USD ($) $ in Thousands | Jul. 12, 2017 | Jun. 29, 2017 |
Subsequent Events [Abstract] | ||
Common stock issued for issued and outstanding shares of Zazu - .3572 shares per 1 share of Zazu | 19,788,183 | |
Increase in shares available for issuance from 1,750,000 2013 Plan | 5,750,000 | |
Estimated purchase price to be recorded in third quarter 2017 | $ 13,900 |