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FAIR VALUE ACCOUNTING
 12 Months Ended
Dec. 31, 2017
Fair Value Disclosures [Abstract]  
Fair Value Accounting
FAIR VALUE ACCOUNTING
Assets and liabilities measured at fair value on a recurring basis
The following tables set forth the fair value of the Company's assets and liabilities measured at fair value on a recurring basis (at least annually) by level within the fair value hierarchy as at December 31, 2017. 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.
As at December 31, 2017, the fair values of cash and cash equivalents, restricted cash, short-term deposits, receivables, accounts payable and accrued liabilities approximate their carrying values because of the short-term nature of these instruments.
 
Level 1
 
Level 2
 
Level 3
 
Total
Investments
$
1,937

 
$
—

 
$
—

 
$
1,937

Warrant liabilities (Note 13)
(2,991
)
 
(385
)
 
—

 
(3,376
)
Convertible debentures (Note 12)
(16,636
)
 
—

 
—

 
(16,636
)
 
$
(17,690
)
 
$
(385
)
 
$
—

 
$
(18,075
)

The Company's investments are marketable equity securities which are exchange traded, and are valued using quoted market prices in active markets and as such are classified within Level 1 of the fair value hierarchy. The fair value of the investments is calculated as the quoted market price of the marketable equity security multiplied by the quantity of shares held by the Company.
Assets and liabilities measured at fair value on a non-recurring basis
In the year ended December 31, 2015, the Company recorded an impairment charge of $47.73 million associated with the Goodwill recognized in the acquisition of Uranerz on June 18, 2015. The estimated fair value used in the December 31, 2015 impairment analysis was determined using discounted cash flow projections. Key assumptions used in the calculation of recoverable amounts include discount rates, uranium prices, future timing of production volume including the date when a mineral property can be brought into production and the expected cost to produce uranium and future care and maintenance and operating costs.
In the second quarter of 2015, the Company recorded the fair value of Nichols Ranch Project upon acquisition of Uranerz. The estimated fair value used in the June 18, 2015 valuation was determined using discounted cash flow projections and various other pricing scenarios. Key assumptions used in the calculation of recoverable amounts include discount rates, uranium prices, future timing of production volume including the date when a mineral property can be brought into production and the expected cost to produce uranium, future care and maintenance and operating costs as well as precedent market transactions data.
The following table sets forth a summary of the quantitative and qualitative information related to the unobservable inputs used in the calculation of the Company's non-recurring Level 3 fair value measurements for the year ended December 31, 2017 and 2016.
 
Date of Fair Value Measurement
 
Valuation Technique
 
Unobservable Input
 
Range/Weighted Average
 
For the years ended December 31, 2017 and 2016
Nichols Ranch Project and mineral properties in the ISR and Conventional segments
December 31, 2015
 
Discounted Cash Flow Model
 
Discount Rate
 
10
%
 
 
Short and Long Term Uranium Price
 
$38.90 to $62.10

 
 
United States Inflation Rate
 
2
%
Nichols Ranch Project
June 18, 2015
 
Discounted Cash Flow Model
 
Discount Rate
 
10
%
 
 
Short and Long Term Uranium Price
 
$37.95 to $65.00

 
 
United States Inflation Rate
 
2
%
Acquired Uranerz exploration properties
June 18, 2015 and December 31, 2015
 
Enterprise value to resource model and acreage multiple
 
Precedent Transaction Research
 
Measured and Indicated pounds U3O8 - 2.00x

 
 
 
Inferred Pounds U3O8 - 1.5x $77.0x - Acre