28. Financial instruments by category

Fair value

The following table provides the carrying value and the fair value of financial instruments at December 31, 2019 and December 31, 2018:



	December 31, 2019				December 31, 2018
	Carrying amount		Fair value		Carrying amount		Fair value
Financial Assets
Fair value through OCI
Marketable securities	$	3,828	$	3,828	$	2,572	$	2,572
Fair value through profit and loss
Settlement receivables	34,461		34,461		5,243		5,243
Redemption option derivative asset	5,597		5,597		—		—
Amortized cost
Cash and cash equivalents	177,742		177,742		286,312		286,312
Term deposit	3,275		3,275		6,646		6,646
Restricted cash	3,100		3,100		13,745		13,745
Other receivables and deposits	23,171		23,171		40,574		40,574
Other assets	9,386		9,386		3,924		3,924
Financial Liabilities at amortized cost
Accounts payable and accrued liabilities	$	139,104	$	139,104	$	140,878	$	140,878
Debt, excluding derivative asset	485,329		524		595,977		549,606

Fair values are determined directly by reference to published price quotations in an active market, when available, or by using a valuation technique that uses inputs observed from relevant markets.

The three levels of the fair value hierarchy are described below:


•	Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.


•	Level 2 – Inputs that are observable, either directly or indirectly, but do not qualify as Level 1 inputs (i.e., quoted prices for similar assets or liabilities).


•	Level 3 – Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).

Assets measured at fair value as at December 31, 2019 include marketable securities of $3,828 (December 31, 2018 – $2,572), comprised of publicly-traded equity investments classified as fair value through other comprehensive income, settlement receivables of $34,461 (December 31, 2018 - $5,243) arising from provisional pricing in contracts for the sale of metals in concentrate classified as fair value through profit and loss, and a derivative asset of $5,597 related to redemption options associated with the senior secured notes classified as fair value through profit and loss. Changes in the fair value of settlement receivables are recorded in revenue and changes in the fair value of the redemption option derivative asset are recorded in finance costs. No liabilities are measured at fair value on a recurring basis as at December 31, 2019.

28. Financial instruments by category (continued)

The fair value of financial instruments traded in active markets is based on quoted market prices at date of the statement of financial position. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm’s length basis. The quoted market price used for financial assets held by the group is the current bid price. The Company's marketable securities are included in Level 1. Instruments included in Level 2 comprise settlement receivables, the redemption option derivative asset and the fair market value of the Company's senior secured notes (note 16a). The fair value of settlement receivables is determined based on forward metal prices for the quotational period; the fair value of the Company's redemption option derivative asset is based on models using observable interest rate inputs and the fair value of the Company's senior secured notes in note 16 is based on observable prices in inactive markets. The fair value of the term loan is $200 million based on current market rates of interest and the Company's credit risk premium and represents a Level 2 fair value measurement. For all other financial instruments, carrying amounts approximate fair value.