Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 30, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | SOLITARIO ZINC CORP. | |
Entity Central Index Key | 0000917225 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Is Entity's Reporting Status Current? | Yes | |
Is Entity Emerging Growth Company? | false | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Common Stock, Shares Outstanding | 58,134,066 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2019 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 335 | $ 117 |
Short-term investments | 7,318 | 10,223 |
Investments in marketable equity securities, at fair value | 1,014 | 1,585 |
Prepaid expenses and other | 324 | 211 |
Total current assets | 8,991 | 12,136 |
Mineral properties | 15,617 | 15,657 |
Other assets | 179 | 110 |
Total assets | 24,787 | 27,903 |
Current liabilities: | ||
Accounts payable | 188 | 688 |
Other current liabilities | 4 | 0 |
Operating lease liability | 40 | 0 |
Total current liabilities | 232 | 688 |
Long-term liabilities | ||
Asset retirement obligation - Lik | 125 | 125 |
Operating lease liability | 17 | 0 |
Total long-term liabilities | 142 | 125 |
Commitments and contingencies (Note 8) | ||
Shareholders' equity: | ||
Preferred stock, $0.01 par value, authorized 10,000,000 shares (none issued and outstanding at September 30, 2019 and December 31, 2018) | 0 | 0 |
Common stock, $0.01 par value, authorized 100,000,000 shares (58,135,366 and 58,171,466 shares, respectively, issued and outstanding at September 30, 2019 and December 31, 2018) | 581 | 582 |
Additional paid-in capital | 70,120 | 69,873 |
Accumulated deficit | (46,288) | (43,365) |
Total shareholders' equity | 24,413 | 27,090 |
Total liabilities and shareholders' equity | $ 24,787 | $ 27,903 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 |
Preferred stock | ||
Preferred stock, par value | $ .01 | $ .01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock | ||
Common stock, par value | $ .01 | $ .01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 58,135,366 | 58,171,466 |
Common stock, shares outstanding | 58,135,366 | 58,171,466 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||||
Revenue, net - mineral property sale | $ 0 | $ 0 | $ 408 | $ 502 |
Costs, expenses and other: | ||||
Exploration expense | 815 | 344 | 1,680 | 686 |
Depreciation | 6 | 7 | 19 | 19 |
General and administrative | 319 | 344 | 1,065 | 1,509 |
Total costs, expenses and other | 1,140 | 695 | 2,764 | 2,214 |
Interest income, net | 43 | 46 | 205 | 109 |
Unrealized loss on marketable equity securities | (347) | (74) | (736) | (737) |
Loss on derivative instruments | (36) | 0 | (36) | 0 |
Total other loss | (340) | (28) | (567) | (628) |
Net loss | $ (1,480) | $ (723) | $ (2,923) | $ (2,340) |
Loss per common share: | ||||
Basic and diluted | $ (0.03) | $ (0.01) | $ (0.05) | $ (0.04) |
Weighted average shares outstanding: | ||||
Basic and diluted | 58,138 | 58,303 | 58,147 | 58,379 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Operating activities: | ||
Net loss | $ (2,923) | $ (2,340) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 19 | 19 |
Amortization of capitalized lease asset | 29 | 0 |
Unrealized loss on marketable equity securities | 736 | 737 |
Employee stock option expense | 258 | 510 |
Loss on derivative instruments | 36 | 0 |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other assets | 211 | 67 |
Note receivable, net of mineral property sold | (223) | 0 |
Accounts payable and other current liabilities | (528) | (7) |
Net cash used in operating activities | (2,385) | (1,014) |
Investing activities: | ||
Sale of short-term investments, net | 2,844 | 1,068 |
Purchase of Vendetta units | (233) | 0 |
Sale of Kinross calls | 10 | 0 |
Purchase of other assets | (6) | (11) |
Net cash provided by investing activities | 2,615 | 1,057 |
Financing activities: | ||
Purchase of common stock for cancellation | (12) | (75) |
Net cash used in financing activities | (12) | (75) |
Net increase (decrease) in cash and cash equivalents | 218 | (32) |
Cash and cash equivalents, beginning of period | 117 | 214 |
Cash and cash equivalents, end of period | $ 335 | $ 182 |
Business and Significant Accoun
Business and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Business and Significant Accounting Policies | Business and company formation Solitario Zinc Corp. (“Solitario,” or the “Company”) is an exploration stage company as defined in 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. Solitario’s primary business is to acquire exploration mineral properties or royalties and/or discover economic deposits on its mineral properties and advance these deposits, either on its own or through joint ventures, up to the development stage of the project. At that point, or sometime prior to that point, Solitario would likely attempt to sell its mineral properties, pursue their development either on its own, or through a joint venture with a partner that has expertise in mining operations, or create a royalty with a third party that continues to advance the property. Solitario is primarily focused on the acquisition and exploration of zinc-related exploration mineral properties, however Solitario will evaluate and potentially acquire other base and precious metal mineral exploration properties. In addition to focusing on its mineral exploration properties, Solitario also evaluates potential strategic transactions for the acquisition of new precious and base metal properties and assets with exploration potential or business combinations that Solitario determines to be favorable to Solitario. Solitario has recorded revenue in the past from the sale of mineral properties, including the sale of certain mineral royalty properties in January 2019, discussed below, and the sale in June 2018 of its interest in the royalty on the Yanacocha property. Revenues and / or proceeds from the sale or joint venture of properties or assets have not been a consistent annual source of cash and would only occur in the future, if at all, on an infrequent basis. Solitario currently considers its carried interest in the Florida Canyon project and its interest in the Lik project to be its core mineral property assets. Nexa Resources, Ltd. (“Nexa”), Solitario’s joint venture partner, is continuing the exploration and furtherance of the Florida Canyon project and Solitario is monitoring progress at Florida Canyon. Solitario is working with its 50% joint venture partner, Teck American Incorporated, a wholly owned subsidiary of Teck Resources Limited (both companies are referred to as “Teck”), in the Lik deposit to further the exploration of, and to evaluate potential development plans for the Lik project. As of September 30, 2019, Solitario has significant balances of cash and short-term investments that Solitario anticipates using, in part, to further the exploration of the Florida Canyon and Lik projects and to potentially acquire additional mineral property assets. The fluctuations in precious metal and other commodity prices contribute to a challenging environment for mineral exploration and development, which has created opportunities as well as challenges for the potential acquisition of early-stage and advanced mineral exploration projects or other related assets at potentially attractive terms. The accompanying interim condensed consolidated financial statements of Solitario for the three and nine months ended September 30, 2019 are unaudited and are prepared in accordance with accounting principles generally accepted in the United States of America (“generally accepted accounting principles”). 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, 2019. 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, 2018. 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. Recent Developments Royalty sale On January 22, 2019, Solitario completed the sale of its interest in certain royalties to SilverStream SEZC, a private Cayman Island royalty and streaming company (“SilverStream”) for Cdn$600,000 (the “Royalty Sale”). The Royalty Sale covered (i) a royalty on the formerly Solitario-owned 125,000-acre polymetallic Pedra Branca palladium, platinum, gold, nickel, cobalt and chrome project in Brazil, (ii) a royalty covering 3,880 acres of non-producing exploration properties in Mexico, and (iii) a purchase option on 11 separate non-producing properties covering over 16,500 acres in Montana. On closing of the Royalty Sale, Solitario received Cdn$250,000 in cash and a convertible note from SilverStream in the principal amount of Cdn$350,000 (the “SilverStream Note”). The SilverStream Note is due December 31, 2019, accrues 5% per annum simple interest, payable on a quarterly basis, and is convertible into common shares of SilverStream, at the discretion of SilverStream, by providing Solitario a notice of conversion. Solitario recorded interest income of $3,000 and $9,000, respectively, from the SilverStream Note during the three and nine months ended September 30, 2019. SilverStream may only provide a notice of conversion if SilverStream has completed an initial public offering during the term of the SilverStream Note for minimum proceeds of Cdn$5,000,000, otherwise the SilverStream Note will be payable in cash at the maturity date. Pursuant to the terms of the SilverStream Note, if SilverStream were to complete an initial public offering and the SilverStream Note was converted, Solitario would receive common shares converted at 85% of the weighted average quoted price of a share of SilverStream common stock for the most recent 10-day period prior to the notice of conversion. During the nine months ended September 30, 2019, Solitario recorded mineral property revenue of $408,000 for the Royalty Sale, consisting of the fair value of the cash received on the date of the sale of $185,000 and the fair value of the SilverStream Note on the date of the sale of $263,000 less the carrying value of the royalties sold of $40,000. As of September 30, 2019, the approximate fair value of the SilverStream Note, including accrued interest, was $268,000, based upon the current US dollar / Canadian dollar exchange rate, and Solitario recorded a credit to exchange gain and loss of $1,000, included in general and administrative expense during the nine months ended September 30, 2019. Financial reporting The 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 consolidated financial statements are prepared in accordance with generally accepted accounting principles and are expressed in U.S. dollars. Revenue recognition Solitario has recorded revenue from the sale of exploration mineral properties and joint venture property payments. Solitario’s policy is to recognize revenue from the sale of its exploration mineral properties (those without reserves) on a property-by-property basis, computed as the cash received and / or expected collectable receivables less any capitalized cost. Payments received for the sale of exploration property interests that are less than the properties cost are recorded as a reduction of the related property's capitalized cost. In addition, Solitario’s policy is to recognize revenue on any receipts of joint venture property payments in excess of its capitalized costs on a property that Solitario may lease to another mining company. Solitario has recognized revenue during the nine months ended September 30, 2019 of $408,000 related to the Royalty Sale, discussed above, in accordance with Accounting Standards Codification (“ASC”) 606. In addition, Solitario recorded revenue during the second quarter of 2018 of $502,000 from the sale of its former Yanacocha exploration mineral property. Solitario expects any property or asset sales in the future to be on an infrequent basis. Prior to the sale of its Yanacocha exploration mineral property, the last proceeds from joint venture property payments was in 2015 and Solitario does not expect to record joint venture property payments on any of its currently held properties for the foreseeable future. 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, to officers and directors and to others; (iv) the ability of Solitario to realize its deferred tax assets; (v) the collectability of the SilverStream Note; and (vi) Solitario's investment in marketable equity securities. 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 or its joint venture partners 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 September 30, 2019, $328,000 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. Short-term investments As of September 30, 2019, Solitario has $7,318,000 of its current assets in United States Treasury Securities (“USTS”) with remaining maturities of 30 days to 15 months. The USTS are recorded at their fair value, based upon quoted market prices, and are not covered under the FDIC insurance rules for United States deposits, with increases or decreases in fair market value recorded as interest income in the statement of operation in the period. Solitario’s USTS 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 its mineral properties are capitalized. 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. Leases Solitario accounts for its leases in accordance with ASC 842, Leases Fair value ASC 820, Fair Value measurement (“ASC 820”) Marketable equity securities Solitario's investments in marketable equity securities are carried at fair value, which is based upon quoted prices of the securities owned. Solitario records investments in marketable equity securities 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 as unrealized gain or loss in the statement of operations. Derivative instruments Solitario accounts for its derivative instruments in accordance with ASC 815, "Accounting for Derivative Instruments and Hedging Activities" (“ASC 815”). 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 2018 and the first nine months of 2019 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. 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 nine months ended September 30, 2019 and 2018. Potentially dilutive shares related to outstanding common stock options of 4,373,000 at September 30, 2019 and 4,025,228 at September 30, 2018 for Solitario common shares were excluded from the calculation of diluted earnings (loss) per share because the effects were anti-dilutive. Employee stock compensation and incentive plans Solitario classifies all of its stock options as equity options in accordance with the provisions of ASC 718, “Compensation – Stock Compensation.” Recent accounting pronouncements On January 1, 2019, Solitario adopted Accounting Standards Update No. 2016-02 Leases |
Mineral Property
Mineral Property | 9 Months Ended |
Sep. 30, 2019 | |
Extractive Industries [Abstract] | |
Mineral Property | The following table details Solitario’s investment in Mineral Property: (in thousands) September 30, December 31, 2019 2018 Exploration Lik project (Alaska – US) $ 15,611 $ 15,611 La Promesa (Peru) 6 6 Montana Royalty property (US) - 40 Total exploration mineral property $ 15,617 $ 15,657 All exploration costs on our 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. Royalty Sale On January 22, 2019, Solitario completed the Royalty Sale, discussed above under “Recent Developments” to SilverStream for Cdn$600,000. On closing of the Royalty Sale, Solitario received Cdn$250,000 in cash and the SilverStream Note with a principal amount of Cdn$350,000, with a maturity date of December 31, 2019. During the nine months ended September 30, 2019, Solitario recorded mineral property revenue of $408,000 from the Royalty Sale, consisting of the fair value of the cash received on the date of the sale of $185,000 and the fair value of the SilverStream Note on the date of the sale of $263,000, less the carrying value of the royalties sold of $40,000. Exploration expense The following items comprised exploration expense: (in thousands) Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Geologic and field expenses $ 794 $ 322 $ 1,621 $ 619 Administrative 21 22 59 67 Total exploration costs $ 815 $ 344 $ 1,680 $ 686 Asset Retirement Obligation In connection with the acquisition of its interest in the Lik project in 2017, Solitario has recorded an asset retirement obligation of $125,000 as of September 30, 2019 and December 31, 2018 for Solitario’s estimated reclamation cost of the existing disturbance at the Lik project. This disturbance consists of an exploration camp including certain drill sites and access roads at the camp. The estimate is based upon Solitario’s estimated cash costs for reclamation. Solitario has purchased a reclamation bond insurance policy for the bonding required by the State of Alaska, in the event Solitario or its 50% partner, Teck, do not complete any required reclamation. Solitario has not applied a discount rate to the recorded asset retirement obligation as the estimated time frame for reclamation is not currently known, as reclamation is not expected to occur until the end of the Lik project life, which would follow future development and operations, the start of which cannot be estimated or assured at this time. |
Marketable Equity Securities
Marketable Equity Securities | 9 Months Ended |
Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Equity Securities | Solitario's investments in marketable equity securities 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 the condensed consolidated statement of operations. During the three and nine months ended September 30, 2019, Solitario recorded an unrealized loss on marketable equity securities of $347,000 and $736,000, respectively. During the three and nine months ended September 30, 2018, Solitario recorded an unrealized loss on marketable equity securities of $74,000 and $737,000, respectively. The following tables summarize Solitario’s marketable equity securities and adjustments to fair value: (in thousands) September 30, 2019 December 31, 2018 Marketable equity securities at cost $ 1,879 $ 1,714 Cumulative unrealized loss on marketable equity securities (865 ) (129 ) Marketable equity securities at fair value $ 1,014 $ 1,585 The following table represents changes, including purchases and sales, in marketable equity securities during the three and nine months ended September 30, 2019 and 2018: (in thousands) Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Purchase of Vendetta shares $ 165 $ - $ 165 $ - Gross (loss) recorded in the statement of operations (347 ) (74 ) (736 ) (737 ) Change in marketable equity securities at fair value $ (182 ) $ (74 ) $ (571 ) $ (737 ) Vendetta Warrants On July 31, 2019, Solitario purchased 3,450,000 Vendetta units for total of $233,000. Each Vendetta unit consisted of one share of Vendetta common stock and one Vendetta warrant (the “Vendetta Warrants”). Each Vendetta Warrant entitles the holder to purchase one additional share of Vendetta common stock for a purchase price of Cdn$0.13 per share for a period of three years. The purchase of the units on July 31, 2019 increased Solitario’s holdings of Vendetta common shares to 14,450,000 shares. On the purchase date Solitario recorded marketable equity securities of $165,000 for the Vendetta shares acquired and $68,000 for the Vendetta Warrants based upon an allocation of the purchase price of the Vendetta units, based upon (i) the fair value of the Vendetta common shares received, based upon the quoted market price for Vendetta common shares and (ii) the fair value of Vendetta Warrants based upon a Black Scholes model, using the stock price of Cdn$0.09, volatility of 79%, a term of three years and a discount rate of 1.5%. During the three and nine months ended September 30, 2019, Solitario charged loss on derivative instruments $42,000 for the change in the value of the Vendetta Warrants. Solitario did not sell any marketable equity securities during the three and nine months ended September 30, 2019 or 2018 and the change in the fair value of marketable equity securities was related to the purchase of the shares of common stock from the Vendetta units and the unrealized loss on marketable equity securities related to their fair values based upon quoted market prices for the marketable equity securities held by Solitario during the periods. |
Operating Leases
Operating Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Operating Leases | Solitario adopted ASU 2016-02 effective January 1, 2019 and accounts for its leases in accordance with ASC 842. Solitario leases one facility, its Wheat Ridge, Colorado administrative office (the “WR Lease”), that has a term of more than one year. Solitario has no other material operating lease costs. The WR Lease is classified as an operating lease and has a term of 17 months at September 30, 2019, with no renewal option. At September 30, 2019, the right-of-use office lease asset for the WR Lease is classified as other assets and the related liability separated between current and non-current office lease liabilities in the condensed consolidated balance sheet. Lease expense is recognized on a straight-line basis over the lease term, with variable lease payments recognized in the period those payments are incurred. During the three and nine months ended September 30, 2019, Solitario recognized $10,000 and $30,000, respectively, of non-cash lease expense for the WR Lease included in general and administrative expense. Cash lease payments of $10,000 and $27,000, respectively, were made on the WR Lease during the three and nine months ended September 30, 2019 and this amount, less $1,000 and $3,000, respectively, of imputed interest during the three and nine months ended September 30, 2019, reduced the related liability on the WR Lease. The discount rate within the WR Lease is not determinable and Solitario has applied a discount rate of 5% based upon Solitario’s estimate of its cost of capital. The maturities of Solitario’s lease liability for its WR Lease are as follows at September 30, 2019: (in thousands) Lease payments per year 2019 $ 10 2020 42 2021 7 Total lease payments 59 Less amount of payments representing interest (2 ) Present value of lease payments $ 57 The following is supplemental cash flow information related to our operating lease for the nine months ended September 30, 2019: (in thousands) Nine months ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash outflows from WR Lease payments $ 27 Non-cash amounts related to the WR lease Leased assets recorded in exchange for new operating lease liabilities $ 82 |
Other Assets
Other Assets | 9 Months Ended |
Sep. 30, 2019 | |
Other Assets [Abstract] | |
Other Assets | The following items comprised other assets: (in thousands) September 30, December 31 2019 2018 Furniture and fixtures, net of accumulated depreciation $ 39 $ 36 Lik project equipment, net of accumulated depreciation 55 70 Exploration bonds and other assets 4 4 Vendetta Warrants 27 - Office lease asset 54 - Total other assets $ 179 $ 110 |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Solitario accounts for its financial instruments under ASC 820. For certain of Solitario’s financial instruments, including cash and cash equivalents and payables, the carrying amounts approximate fair value due to their short-term maturities. Solitario’s short-term investments in USTS, marketable equity securities and Kinross calls are carried at their estimated fair value primarily based on quoted market prices. The Vendetta Warrants are carried at their fair value based upon a Black-Scholes model. During the three and nine months ended September 30, 2019 there were no reclassifications in financial assets or liabilities between Level 1, 2 or 3 categories. The following is a listing of Solitario’s financial assets and liabilities required to be measured at fair value on a recurring basis and where they are classified within the hierarchy as of September 30, 2019: (in thousands) Level 1 Level 2 Level 3 Total Assets Short-term investments $ 7,318 $ - $ - $ 7,318 Marketable equity securities $ 1,014 $ - - $ 1,014 Vendetta Warrants $ - $ 27 $ - $ 27 Liabilities Kinross calls $ - $ 4 $ - $ 4 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, 2018: (in thousands) Level 1 Level 2 Level 3 Total Assets Short-term investments $ 10,223 $ - $ - $ 10,223 Marketable equity securities $ 1,585 $ - $ - $ 1,585 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
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 September 30, 2019 and December 31, 2018, a valuation allowance has been recorded, which fully offsets Solitario’s net deferred tax assets, 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 nine months ended September 30, 2019 and 2018, Solitario recorded no current or deferred tax expense. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Solitario has recorded an asset retirement obligation of $125,000 related to its Lik project in Alaska. See Note 2, “Mineral Property,” above. |
Employee Stock Compensation Pla
Employee Stock Compensation Plans | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Employee Stock Compensation Plans | On June 18, 2013, Solitario’s shareholders approved the 2013 Solitario Exploration & Royalty Corp. Omnibus Stock and Incentive Plan (the “2013 Plan”). Under the terms of the 2013 Plan, a total of 1,750,000 shares of Solitario common stock were reserved for awards to directors, officers, employees and consultants. On June 29, 2017, Solitario’s shareholders approved an amendment to the 2013 Plan, which increased the number of shares of common stock available for issuance under the 2013 Plan from 1,750,000 to 5,750,000. Awards granted under the 2013 Plan 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. As of September 30, 2019, and December 31, 2018 there were options outstanding that are exercisable to acquire 4,373,000 and 5,223,160 shares, respectively, of Solitario common stock, with exercise prices between $0.28 and $0.77 per share. During the three months ended September 30, 2019, Solitario did not grant any additional options. During the nine months ended September 30, 2019, Solitario granted options exercisable to acquire 150,000 shares of common stock, with an exercise price of $0.28 per share, a five-year term, and a grant date fair value of $23,000 based upon a Black-Scholes model, with a 64% volatility and a 2.4% risk-free interest rate. In addition, during the nine months ended September 30, 2019, options exercisable to acquire 1,000,160 shares of common stock, with exercise prices between $1.68 and $0.70 per share, expired unexercised. During the three and nine months ended September 30, 2018, Solitario granted options exercisable to acquire 100,000 shares of common stock, respectively, with an exercise price of $0.68 per share, a seven-month term and a grant date fair value of $12,000 based upon a Black-Scholes model with a 66% volatility and a 1% risk-free interest rate. There were no exercises of options under the 2013 Plan during the three and nine months ended September 30, 2019 and 2018. During the three and nine months ended September 30, 2019, Solitario recorded stock option compensation expense of $85,000 and $258,000, respectively. During the three and nine months ended September 30, 2018, Solitario recorded non-cash stock option compensation expense of $68,000 and $510,000, respectively. At September 30, 2019, the total unrecognized stock option compensation cost related to non-vested options is $402,000 and is expected to be recognized over a weighted average period of 17 months. |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity for the nine months ended September 30, 2018: (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, 2017 58,434,566 584 $ 69,312 $ (40,343 ) $ 576 $ 30,129 Cumulative-effect adjustment change in accounting principle - - - 576 (576 ) - Adjusted balance January 1, 2018 58,434,566 584 69,312 (39,767 ) - 30,129 Stock option expense - - 510 - - 510 Purchase of shares for cancellation (173,200 ) (1 ) (74 ) - - (75 ) Net loss - - - (2,340 ) - (2,340 ) Balance at September 30, 2018 58,261,366 $ 583 $ 69,748 $ (42,107 ) $ - $ 28,224 Solitario adopted Accounting Standards Update No. 2016-01 Recognition and Measurement of Financial Assets and Financial Liabilities Shareholders’ Equity for the nine months ended September 30, 2019: (in thousands, except Share amounts) Common Common Additional Total Stock Stock Paid-in Accumulated Shareholders’ Shares Amount Capital Deficit Equity Balance at December 31, 2018 58,171,466 582 $ 69,873 $ (43,365 ) $ 27,090 Stock option expense - - 258 - 258 Purchase of shares for cancellation (36,100 ) (1 ) (11 ) - (12 ) Net loss - - - (2,923 ) (2,923 ) Balance at September 30, 2019 58,135,366 $ 581 $ 70,120 $ (46,288 ) $ 24,413 Share Repurchase Program On October 28, 2015, Solitario’s Board of Directors approved a share repurchase program that authorized Solitario to purchase up to two million shares of its outstanding common stock. During 2018, Solitario’s Board of Directors extended the expiration date of the share repurchase program through December 31, 2019. During the three months ended September 30, 2019 and 2018, Solitario purchased 2,900 and 28,000 shares of Solitario common stock, respectively, for an aggregate purchase price of $1,000 and $10,000, respectively. During the nine months ended September 30, 2019 and 2018, Solitario purchased 36,100 and 173,200 shares of Solitario common stock, respectively, for an aggregate purchase price of $12,000 and $75,000, respectively. As of September 30, 2019, Solitario has purchased a total of 967,000 shares for an aggregate purchase price of $461,000 under the share repurchase program since its inception. |
Business and Significant Acco_2
Business and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Business and company formation | Solitario Zinc Corp. (“Solitario,” or the “Company”) is an exploration stage company as defined in 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. Solitario’s primary business is to acquire exploration mineral properties or royalties and/or discover economic deposits on its mineral properties and advance these deposits, either on its own or through joint ventures, up to the development stage of the project. At that point, or sometime prior to that point, Solitario would likely attempt to sell its mineral properties, pursue their development either on its own, or through a joint venture with a partner that has expertise in mining operations, or create a royalty with a third party that continues to advance the property. Solitario is primarily focused on the acquisition and exploration of zinc-related exploration mineral properties, however Solitario will evaluate and potentially acquire other base and precious metal mineral exploration properties. In addition to focusing on its mineral exploration properties, Solitario also evaluates potential strategic transactions for the acquisition of new precious and base metal properties and assets with exploration potential or business combinations that Solitario determines to be favorable to Solitario. Solitario has recorded revenue in the past from the sale of mineral properties, including the sale of certain mineral royalty properties in January 2019, discussed below, and the sale in June 2018 of its interest in the royalty on the Yanacocha property. Revenues and / or proceeds from the sale or joint venture of properties or assets have not been a consistent annual source of cash and would only occur in the future, if at all, on an infrequent basis. Solitario currently considers its carried interest in the Florida Canyon project and its interest in the Lik project to be its core mineral property assets. Nexa Resources, Ltd. (“Nexa”), Solitario’s joint venture partner, is continuing the exploration and furtherance of the Florida Canyon project and Solitario is monitoring progress at Florida Canyon. Solitario is working with its 50% joint venture partner, Teck American Incorporated, a wholly owned subsidiary of Teck Resources Limited (both companies are referred to as “Teck”), in the Lik deposit to further the exploration of, and to evaluate potential development plans for the Lik project. As of September 30, 2019, Solitario has significant balances of cash and short-term investments that Solitario anticipates using, in part, to further the exploration of the Florida Canyon and Lik projects and to potentially acquire additional mineral property assets. The fluctuations in precious metal and other commodity prices contribute to a challenging environment for mineral exploration and development, which has created opportunities as well as challenges for the potential acquisition of early-stage and advanced mineral exploration projects or other related assets at potentially attractive terms. The accompanying interim condensed consolidated financial statements of Solitario for the three and nine months ended September 30, 2019 are unaudited and are prepared in accordance with accounting principles generally accepted in the United States of America (“generally accepted accounting principles”). 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, 2019. 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, 2018. 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. |
Recent developments | Royalty sale On January 22, 2019, Solitario completed the sale of its interest in certain royalties to SilverStream SEZC, a private Cayman Island royalty and streaming company (“SilverStream”) for Cdn$600,000 (the “Royalty Sale”). The Royalty Sale covered (i) a royalty on the formerly Solitario-owned 125,000-acre polymetallic Pedra Branca palladium, platinum, gold, nickel, cobalt and chrome project in Brazil, (ii) a royalty covering 3,880 acres of non-producing exploration properties in Mexico, and (iii) a purchase option on 11 separate non-producing properties covering over 16,500 acres in Montana. On closing of the Royalty Sale, Solitario received Cdn$250,000 in cash and a convertible note from SilverStream in the principal amount of Cdn$350,000 (the “SilverStream Note”). The SilverStream Note is due December 31, 2019, accrues 5% per annum simple interest, payable on a quarterly basis, and is convertible into common shares of SilverStream, at the discretion of SilverStream, by providing Solitario a notice of conversion. Solitario recorded interest income of $3,000 and $9,000, respectively, from the SilverStream Note during the three and nine months ended September 30, 2019. SilverStream may only provide a notice of conversion if SilverStream has completed an initial public offering during the term of the SilverStream Note for minimum proceeds of Cdn$5,000,000, otherwise the SilverStream Note will be payable in cash at the maturity date. Pursuant to the terms of the SilverStream Note, if SilverStream were to complete an initial public offering and the SilverStream Note was converted, Solitario would receive common shares converted at 85% of the weighted average quoted price of a share of SilverStream common stock for the most recent 10-day period prior to the notice of conversion. During the nine months ended September 30, 2019, Solitario recorded mineral property revenue of $408,000 for the Royalty Sale, consisting of the fair value of the cash received on the date of the sale of $185,000 and the fair value of the SilverStream Note on the date of the sale of $263,000 less the carrying value of the royalties sold of $40,000. As of September 30, 2019, the approximate fair value of the SilverStream Note, including accrued interest, was $268,000, based upon the current US dollar / Canadian dollar exchange rate, and Solitario recorded a credit to exchange gain and loss of $1,000, included in general and administrative expense during the nine months ended September 30, 2019. |
Financial reporting | The 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 consolidated financial statements are prepared in accordance with generally accepted accounting principles and are expressed in U.S. dollars. |
Revenue recognition | Solitario has recorded revenue from the sale of exploration mineral properties and joint venture property payments. Solitario’s policy is to recognize revenue from the sale of its exploration mineral properties (those without reserves) on a property-by-property basis, computed as the cash received and / or expected collectable receivables less any capitalized cost. Payments received for the sale of exploration property interests that are less than the properties cost are recorded as a reduction of the related property's capitalized cost. In addition, Solitario’s policy is to recognize revenue on any receipts of joint venture property payments in excess of its capitalized costs on a property that Solitario may lease to another mining company. Solitario has recognized revenue during the nine months ended September 30, 2019 of $408,000 related to the Royalty Sale, discussed above, in accordance with Accounting Standards Codification (“ASC”) 606. In addition, Solitario recorded revenue during the second quarter of 2018 of $502,000 from the sale of its former Yanacocha exploration mineral property. Solitario expects any property or asset sales in the future to be on an infrequent basis. Prior to the sale of its Yanacocha exploration mineral property, the last proceeds from joint venture property payments was in 2015 and Solitario does not expect to record joint venture property payments on any of its currently held properties for the foreseeable future. |
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, to officers and directors and to others; (iv) the ability of Solitario to realize its deferred tax assets; (v) the collectability of the SilverStream Note; and (vi) Solitario's investment in marketable equity securities. 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 or its joint venture partners 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 September 30, 2019, $328,000 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. |
Short-term investments | As of September 30, 2019, Solitario has $7,318,000 of its current assets in United States Treasury Securities (“USTS”) with remaining maturities of 30 days to 15 months. The USTS are recorded at their fair value, based upon quoted market prices, and are not covered under the FDIC insurance rules for United States deposits, with increases or decreases in fair market value recorded as interest income in the statement of operation in the period. Solitario’s USTS 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 its mineral properties are capitalized. 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. |
Leases | Solitario accounts for its leases in accordance with ASC 842, Leases |
Fair value | ASC 820, Fair Value measurement (“ASC 820”) |
Marketable equity securities | Solitario's investments in marketable equity securities are carried at fair value, which is based upon quoted prices of the securities owned. Solitario records investments in marketable equity securities 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 as unrealized gain or loss in the statement of operations. |
Derivative instruments | Solitario accounts for its derivative instruments in accordance with ASC 815, "Accounting for Derivative Instruments and Hedging Activities" (“ASC 815”). |
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 2018 and the first nine months of 2019 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. |
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 nine months ended September 30, 2019 and 2018. Potentially dilutive shares related to outstanding common stock options of 4,373,000 at September 30, 2019 and 4,025,228 at September 30, 2018 for Solitario common shares were excluded from the calculation of diluted earnings (loss) per share because the effects were anti-dilutive. |
Employee stock compensation and incentive plans | Solitario classifies all of its stock options as equity options in accordance with the provisions of ASC 718, “Compensation – Stock Compensation.” |
Recent accounting pronouncements | On January 1, 2019, Solitario adopted Accounting Standards Update No. 2016-02 Leases |
Mineral Property (Tables)
Mineral Property (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Extractive Industries [Abstract] | |
Investment in mineral property | (in thousands) September 30, December 31, 2019 2018 Exploration Lik project (Alaska – US) $ 15,611 $ 15,611 La Promesa (Peru) 6 6 Montana Royalty property (US) - 40 Total exploration mineral property $ 15,617 $ 15,657 |
Exploration expense | (in thousands) Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Geologic and field expenses $ 794 $ 322 $ 1,621 $ 619 Administrative 21 22 59 67 Total exploration costs $ 815 $ 344 $ 1,680 $ 686 |
Marketable Equity Securities (T
Marketable Equity Securities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable securities and adjustment to fair value | (in thousands) September 30, 2019 December 31, 2018 Marketable equity securities at cost $ 1,879 $ 1,714 Cumulative unrealized loss on marketable equity securities (865 ) (129 ) Marketable equity securities at fair value $ 1,014 $ 1,585 |
Changes in marketable securities | (in thousands) Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Purchase of Vendetta shares $ 165 $ - $ 165 $ - Gross (loss) recorded in the statement of operations (347 ) (74 ) (736 ) (737 ) Change in marketable equity securities at fair value $ (182 ) $ (74 ) $ (571 ) $ (737 ) |
Operating Leases (Tables)
Operating Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Maturities of lease liability | (in thousands) Lease payments per year 2019 $ 10 2020 42 2021 7 Total lease payments 59 Less amount of payments representing interest (2 ) Present value of lease payments $ 57 |
Supplemental cash flow for operating lease | (in thousands) Nine months ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash outflows from WR Lease payments $ 27 Non-cash amounts related to the WR lease Leased assets recorded in exchange for new operating lease liabilities $ 82 |
Other Assets (Tables)
Other Assets (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Other Assets [Abstract] | |
Other assets | (in thousands) September 30, December 31 2019 2018 Furniture and fixtures, net of accumulated depreciation $ 39 $ 36 Lik project equipment, net of accumulated depreciation 55 70 Exploration bonds and other assets 4 4 Vendetta Warrants 27 - Office lease asset 54 - Total other assets $ 179 $ 110 |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Financial assets and liabilities measured at fair value | The following is a listing of Solitario’s financial assets and liabilities required to be measured at fair value on a recurring basis and where they are classified within the hierarchy as of September 30, 2019: (in thousands) Level 1 Level 2 Level 3 Total Assets Short-term investments $ 7,318 $ - $ - $ 7,318 Marketable equity securities $ 1,014 $ - - $ 1,014 Vendetta Warrants $ - $ 27 $ - $ 27 Liabilities Kinross calls $ - $ 4 $ - $ 4 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, 2018: (in thousands) Level 1 Level 2 Level 3 Total Assets Short-term investments $ 10,223 $ - $ - $ 10,223 Marketable equity securities $ 1,585 $ - $ - $ 1,585 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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, 2017 58,434,566 584 $ 69,312 $ (40,343 ) $ 576 $ 30,129 Cumulative-effect adjustment change in accounting principle - - - 576 (576 ) - Adjusted balance January 1, 2018 58,434,566 584 69,312 (39,767 ) - 30,129 Stock option expense - - 510 - - 510 Purchase of shares for cancellation (173,200 ) (1 ) (74 ) - - (75 ) Net loss - - - (2,340 ) - (2,340 ) Balance at September 30, 2018 58,261,366 $ 583 $ 69,748 $ (42,107 ) $ - $ 28,224 (in thousands, except Share amounts) Common Common Additional Total Stock Stock Paid-in Accumulated Shareholders’ Shares Amount Capital Deficit Equity Balance at December 31, 2018 58,171,466 582 $ 69,873 $ (43,365 ) $ 27,090 Stock option expense - - 258 - 258 Purchase of shares for cancellation (36,100 ) (1 ) (11 ) - (12 ) Net loss - - - (2,923 ) (2,923 ) Balance at September 30, 2019 58,135,366 $ 581 $ 70,120 $ (46,288 ) $ 24,413 |
Business and Significant Acco_3
Business and Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Accounting Policies [Abstract] | ||||
Interest income from SiverStream Note | $ 3 | $ 9 | ||
Mineral property revenue | 0 | $ 0 | 408 | $ 502 |
Fair value of the SilverStream Note | 268 | 268 | ||
Exchange gain and loss | 1 | |||
Cash and cash equivalents held in brokerage accounts and foreign banks | 328 | 328 | ||
Current assets in United States Treasury Securities | $ 7,318 | $ 7,318 | ||
Potentially dilutive shares related to outstanding common stock options | 4,373,000 | 4,025,228 | 4,373,000 | 4,025,228 |
Mineral Property (Details)
Mineral Property (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Mineral properties | $ 15,617 | $ 15,657 |
Lik Project Alaska (US) | ||
Mineral properties | 15,611 | 15,611 |
La Promesa (Peru) | ||
Mineral properties | 6 | 6 |
Montana Royalty Property (US) | ||
Mineral properties | $ 0 | $ 40 |
Mineral Property (Details 1)
Mineral Property (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Extractive Industries [Abstract] | ||||
Geologic and field expenses | $ 794 | $ 322 | $ 1,621 | $ 619 |
Administrative | 21 | 22 | 59 | 67 |
Total exploration costs | $ 815 | $ 344 | $ 1,680 | $ 686 |
Mineral Property (Details Narra
Mineral Property (Details Narrative) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Extractive Industries [Abstract] | ||
Mineral property revenue recorded for royalty sale | $ 408 | |
Fair value of cash received on date of sale | 185 | |
Fair value of note received for royalty sale less carrying value | 263 | |
Lik asset retirement obligation | $ 125 | $ 125 |
Marketable Equity Securities (D
Marketable Equity Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Investments, Debt and Equity Securities [Abstract] | ||
Marketable equity securities at cost | $ 1,879 | $ 1,714 |
Cumulative unrealized loss on marketable equity securities | (865) | (129) |
Marketable equity securities at fair value | $ 1,014 | $ 1,585 |
Marketable Equity Securities _2
Marketable Equity Securities (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Purchase of Vendetta shares | $ 165 | $ 0 | $ 165 | $ 0 |
Gross (loss) recorded in the statement of operations | (347) | (74) | (736) | (737) |
Change in marketable equity securities at fair value | $ (182) | $ (74) | $ (571) | $ (737) |
Marketable Equity Securities _3
Marketable Equity Securities (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Purchase of Vendetta shares | $ 165 | $ 0 | $ 165 | $ 0 |
Operating Leases (Details)
Operating Leases (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
2019 | $ 10 |
2020 | 42 |
2021 | 7 |
Total lease payments | 59 |
Less amount of payments representing interest | (2) |
Present value of lease payments | $ 57 |
Operating Leases (Details 1)
Operating Leases (Details 1) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Leases [Abstract] | |
Operating cash outflows from WR Lease payments | $ 27 |
Leased assets recorded in exchange for new operating lease liabilities | $ 82 |
Operating Leases (Details Narra
Operating Leases (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Non-cash lease expense recognized | $ 10 | $ 30 |
Cash lease payments | 10 | 27 |
Imputed interest | $ 1 | $ 3 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Other assets | $ 179 | $ 110 |
Furniture and Fixtures | ||
Other assets | 39 | 36 |
Lik Project Equipment | ||
Other assets | 55 | 70 |
Exploration Bonds and Other Assets | ||
Other assets | 4 | 4 |
Vendetta Warrants | ||
Other assets | 27 | 0 |
Office Lease Asset | ||
Other assets | $ 54 | $ 0 |
Fair Value (Details)
Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Short-term investments | $ 7,318 | $ 10,223 |
Marketable equity securities | 1,014 | 1,585 |
Vendetta Warrants | 27 | |
Liabilities | ||
Kinross calls | 4 | |
Level 1 | ||
Assets | ||
Short-term investments | 7,318 | 10,223 |
Marketable equity securities | 1,014 | 1,585 |
Vendetta Warrants | 0 | |
Liabilities | ||
Kinross calls | 0 | |
Level 2 | ||
Assets | ||
Short-term investments | 0 | 0 |
Marketable equity securities | 0 | 0 |
Vendetta Warrants | 27 | |
Liabilities | ||
Kinross calls | 4 | |
Level 3 | ||
Assets | ||
Short-term investments | 0 | 0 |
Marketable equity securities | 0 | $ 0 |
Vendetta Warrants | 0 | |
Liabilities | ||
Kinross calls | $ 0 |
Employee Stock Compensation P_2
Employee Stock Compensation Plans (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Share-based Payment Arrangement [Abstract] | |||||
Options outstanding | 4,373,000 | 4,373,000 | 5,223,160 | ||
Options exercisable | 4,373,000 | 4,373,000 | 5,223,160 | ||
Options granted | 0 | 100,000 | 150,000 | 100,000 | |
Grant date fair value options granted | $ 23,000 | $ 12,000 | $ 23,000 | $ 12,000 | |
Option compensation expense | $ 85 | $ 68 | $ 258 | $ 510 | |
Unrecognized stock option compensation | $ 402 | $ 402 | |||
Unrecognized stock option compensation recognition period | 17 months |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Common Stock | ||||
Beginning balance, shares | 58,171,466 | 58,434,566 | ||
Beginning balance, value | $ 582 | $ 584 | ||
Adjusted beginning balance, shares | 58,434,566 | |||
Adjusted beginning balance, value | $ 584 | |||
Purchase of shares for cancellation, shares | (36,100) | (173,200) | ||
Purchase of shares for cancellation, value | $ (1) | $ (1) | ||
Ending balance, shares | 58,135,366 | 58,261,366 | 58,135,366 | 58,261,366 |
Ending balance, value | $ 581 | $ 583 | $ 581 | $ 583 |
Additional Paid-in Capital | ||||
Beginning balance, value | 69,873 | 69,312 | ||
Adjusted beginning balance, value | 69,312 | |||
Stock option expense | 258 | 510 | ||
Purchase of shares for cancellation, value | (11) | (74) | ||
Ending balance, value | 70,120 | 69,748 | 70,120 | 69,748 |
Accumulated Deficit | ||||
Beginning balance, value | (43,365) | (40,343) | ||
Cumulative-effect adjustment change in accounting principle | 576 | |||
Adjusted beginning balance, value | (39,767) | |||
Net loss | (2,923) | (2,340) | ||
Ending balance, value | (46,288) | (42,107) | (46,288) | (42,107) |
Accumulated Other Comprehensive Income | ||||
Beginning balance, value | 576 | |||
Cumulative-effect adjustment change in accounting principle | (576) | |||
Adjusted beginning balance, value | 0 | |||
Ending balance, value | 0 | 0 | ||
Beginning balance, value | 27,090 | 30,129 | ||
Cumulative-effect adjustment change in accounting principle | 0 | |||
Adjusted beginning balance, value | 30,129 | |||
Stock option expense | 258 | 510 | ||
Purchase of shares for cancellation, value | (12) | (75) | ||
Net loss | (1,480) | (723) | (2,923) | (2,340) |
Ending balance, value | $ 24,413 | $ 28,224 | $ 24,413 | $ 28,224 |
Shareholders' Equity (Details N
Shareholders' Equity (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 419 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | |
Equity [Abstract] | |||||
Cumulative-effect adjustment for the change in accounting principle to retained earnings | $ 576 | $ 576 | $ 576 | ||
Shares repurchased | 2,900 | 28,000 | 36,100 | 173,200 | 967,000 |
Aggregate purchase price | $ 1 | $ 10 | $ 12 | $ 75 | $ 461 |