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FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS
 6 Months Ended
Jun. 30, 2024
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS
As required by accounting guidance, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Refer to Note 12 to the audited consolidated financial statements in the Company’s 2023 Annual Report on Form 10-K for further information on the Company's assets and liabilities. The following tables set forth the Company’s assets and liabilities measured at fair value on a recurring (at least annually) and nonrecurring basis by level within the fair value hierarchy (in thousands):
Fair value at June 30, 2024
Level 1 (1)
Level 2 (2) 
Level 3Total
Assets:
Cash$358,307 $— $— $358,307 
Restricted cash101 — — 101 
Marketable securities33,565 — — 33,565 
Trade receivables from provisional sales, net — 57,825 — 57,825 
Deferred consideration— — 25,127 25,127 
$391,973 $57,825 $25,127 $474,925 
Liabilities:
Contingent consideration
$
— 
$
— 
$
29,410 
$
29,410 
Option liability - EMX shares (3)
— 1,474 — 1,474 
$— $1,474 $29,410 $30,884 
(1)Marketable securities of publicly quoted companies, consisting of investments, are valued using a market approach based upon unadjusted quoted prices in an active market obtained from securities exchanges.  
(2)The Company’s provisional metal sales contracts, included in Trade and other receivables in the Consolidated Balance Sheets, are valued using inputs derived from observable market data, including quoted commodity forward prices. The inputs do not involve significant management judgment. Such instruments are classified within Level 2 of the fair value hierarchy.
(3)The fair value of the option liability, which represents the option of the holder to acquire an EMX common share from SSR, was determined using the Black-Scholes model. The inputs to the Black-Scholes model as of June 30, 2024 included the EMX stock price of CAD $2.47 per share, exercise price of CAD $2.27 per unit, six-month maturity, one-year risk-free rate of 5.1%, and annualized volatility of 36.7%.
Fair value at December 31, 2023
Level 1 (1)
Level 2 (2) 
Level 3Total
Assets:
Cash$492,393 $— $— $492,393 
Restricted cash101 — — 101 
Marketable securities28,351 — — 28,351 
Trade receivables from provisional sales, net — 86,897 — 86,897 
Deferred consideration— — 21,213 21,213 
$520,845 $86,897 $21,213 $628,955 
Liabilities:
Contingent consideration
$
— 
$
— 
$
29,648 
$
29,648 
Option liability - EMX shares (3)
— 1,431 — 1,431 
$
— 
$
1,431 
$
29,648 
$
31,079 
(1)Marketable securities of publicly quoted companies, consisting of investments, are valued using a market approach based upon unadjusted quoted prices in an active market obtained from securities exchanges.  
(2)The Company’s provisional metal sales contracts, included in Trade and other receivables in the Consolidated Balance Sheets, are valued using inputs derived from observable market data, including quoted commodity forward prices. The inputs do not involve significant management judgment. Such instruments are classified within Level 2 of the fair value hierarchy.
(3)The fair value of the option liability, which represents the option of the holder to acquire an EMX common share from SSR, was determined using the Black-Scholes model. The inputs to the Black-Scholes model as of December 31, 2023 included the EMX stock price of CAD $2.19 per share, exercise price of CAD $2.27 per unit, one-year maturity, one-year risk-free rate of 4.82%, and annualized volatility of 34.09%.
Deferred and contingent consideration are included in Level 3 as certain assumptions used in the calculation of the fair value are not based on observable market data. The following table reconciles the beginning and ending balances for financial instruments that are recognized at fair value using significant unobservable inputs (Level 3) in the consolidated financial statements (in thousands):
Six Months Ended June 30,
20242023
Deferred consideration assets:
Balance as of January 1$21,213 $24,369 
Revaluations1,536 (1,551)
Additions
2,378 — 
Collections
— (474)
Balance as of June 30
$25,127 $22,344 
Six Months Ended June 30,
20242023
Contingent consideration liabilities:
Balance as of January 1$29,648 $— 
Assumption of deferred consideration
— 28,600 
Revaluations(238)— 
Balance as of June 30
$29,410 $28,600 
Fair values of financial assets and liabilities not already measured at fair value
The fair value of the 2019 Notes as compared to the carrying amounts were as follows (in thousands): 
June 30, 2024December 31, 2023
LevelCarrying amountFair valueCarrying amountFair value
2019 Notes (1) 
1$228,040 $205,213 $227,516 $216,545 
(1)The fair value disclosed for the Company's 2019 Notes is included in Level 1 as the basis of valuation uses a quoted price in an active market.