XML 49 R37.htm IDEA: XBRL DOCUMENT v3.24.3
FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS (Tables)
 9 Months Ended
Sep. 30, 2024
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, by Balance Sheet Grouping 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 September 30, 2024
Level 1
Level 2
Level 3Total
Assets:
Cash$334,341 $— $— $334,341 
Marketable securities (1)
34,367 — — 34,367 
Trade receivables from provisional sales, net (2)
 — 69,522 — 69,522 
Deferred consideration— — 25,799 25,799 
$368,708 $69,522 $25,799 $464,029 
Liabilities:
Contingent consideration
$— 
$
— $28,156 $28,156 
Option liability - EMX shares (3)
— 1,013 — 1,013 
Other
— 368 — 368 
$— $1,381 $28,156 $29,537 
(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 September 30, 2024 included the EMX stock price of CAD $2.41 per share, exercise price of CAD $2.27 per unit, three-month maturity, three-month risk-free rate of 4.7%, and annualized volatility of 36.4%.
Fair value at December 31, 2023
Level 1
Level 2
Level 3Total
Assets:
Cash$492,393 $— $— $492,393 
Restricted cash101 — — 101 
Marketable securities (1)
28,351 — — 28,351 
Trade receivables from provisional sales, net (2)
 — 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 4.8%, and annualized volatility of 34.1%.
Schedule of Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation 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):
Nine Months Ended September 30,
20242023
Deferred consideration assets:
Balance as of January 1$21,213 $24,369 
Revaluations2,208 (1,055)
Additions
2,378 — 
Collections
— (474)
Balance as of September 30
$25,799 $22,840 
Nine Months Ended September 30,
20242023
Contingent consideration liabilities:
Balance as of January 1$29,648 $— 
Assumption of deferred consideration
— 28,600 
Revaluations(1,492)617 
Balance as of September 30
$28,156 $29,217 
Schedule of Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation 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):
Nine Months Ended September 30,
20242023
Deferred consideration assets:
Balance as of January 1$21,213 $24,369 
Revaluations2,208 (1,055)
Additions
2,378 — 
Collections
— (474)
Balance as of September 30
$25,799 $22,840 
Nine Months Ended September 30,
20242023
Contingent consideration liabilities:
Balance as of January 1$29,648 $— 
Assumption of deferred consideration
— 28,600 
Revaluations(1,492)617 
Balance as of September 30
$28,156 $29,217 
Schedule of Fair Value Disclosure of Asset and Liability Not Measured at Fair Value
The fair value of the 2019 Notes as compared to the carrying amounts were as follows (in thousands): 
September 30, 2024December 31, 2023
LevelCarrying amountFair valueCarrying amountFair value
2019 Notes (1) 
1$228,305 $216,545 $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.