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INVESTMENTS | 9 Months Ended
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Sep. 30, 2016
INVESTMENTS |
INVESTMENTS | NOTE 2 INVESTMENTS The Company’s investment portfolio consists of marketable equity securities and warrants of certain publicly-traded companies. The Company classifies the marketable equity securities as available-for-sale securities, which are recorded at fair value based upon quoted market prices. The warrants are recorded at fair value using the Black-Scholes option pricing model. The following is a summary of the balances as of September 30, 2016 and December 31, 2015:
|  |  |  |  |  |  |  |  |  |  | Other |  | Statement of |  |  |  |
|  | Opening |  | Additions |  | Disposals |  | Comprehensive |  | Operations |  | Fair Value |
|  | balance |  | during |  | during |  | Income |  | (Loss) |  | end of the |
As of September 30, 2016 |  | (January 1) |  | period |  | period |  | (pre-tax) |  | Income |  | period |
Marketable equity securities |  | $ | 1,032 |  | $ | 2,172 |  | $ | (470) |  | $ | 3,314 |  | $ | (860) |  | $ | 5,188 |
Warrants |  |  | — |  |  | 346 |  |  | — |  |  | — |  |  | 1,522 |  |  | 1,868 |
Investments |  | $ | 1,032 |  | $ | 2,518 |  | $ | (470) |  | $ | 3,314 |  | $ | 662 |  | $ | 7,056 |
|  |  |  |  |  |  |  |  |  |  | Other |  | Statement of |  |  |  |
|  | Opening |  | Additions |  | Disposals |  | Comprehensive |  | Operations |  | Fair Value |
|  | balance |  | during |  | during |  | Loss |  | (Loss) |  | end of the |
As of December 31, 2015 |  | (January 1) |  | year |  | year |  | (pre-tax) |  | Income |  | year |
Marketable equity securities |  | $ | 1,409 |  | $ | 448 |  | $ | — |  | $ | (825) |  | $ | — |  | $ | 1,032 |
Warrants |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Investments |  | $ | 1,409 |  | $ | 448 |  | $ | — |  | $ | (825) |  | $ | — |  | $ | 1,032 |
As of September 30, 2016, the cost of the marketable equity securities and warrants was approximately $2.3 million (December 31, 2015 - $1.9 million). On May 13, 2016, the Company participated in a private placement with Golden Predator Mining Corp. (“Golden Predator”) under which it acquired 3,125,000 units, each unit consisting of one common share and one common share purchase warrant (“warrant”), for a total cost of $0.4 million. Using proportional allocation, the Company allocated $0.2 million as the cost base for each of the common shares and warrants. Subsequently, on July 21, 2016, the Company participated in another private placement with Golden Predator under which it acquired 1,500,000 units, each unit consisting of one common share and one-half of one warrant, for a total cost of $0.9 million. Using proportional allocation, the Company allocated $0.7 million as the cost base to the common shares and $0.2 million to the warrants. As the warrants meet the definition of derivative instruments, unrealized gains or losses arising from their revaluation are recorded in the Consolidated Statement of Operations and Comprehensive Income (Loss). During the three and nine months ended September 30, 2016, the Company recorded an unrealized loss of $0.2 million and an unrealized gain of $1.5 million, respectively. The gains and losses for available-for-sale securities are not reported in Net Income (Loss) of the Consolidated Statement of Operations and Comprehensive Income (Loss) until the securities are sold or if there is an other-than-temporary decline in fair value below cost. During the nine months ended September 30, 2016, the Company sold marketable equity securities for proceeds of $0.5 million. The Company realized a gain of $0.1 million, which is included in the Consolidated Statement of Operations and Comprehensive Income (Loss). During the nine months ended September 30, 2016, the Company reviewed its investment portfolio to determine if any security was other-than-temporarily impaired (“OTTI”). An OTTI security would require the Company to record an impairment charge in the income statement in the period any such determination is made. In making this judgment, the Company evaluated, among other things, the duration and extent to which the fair value of a security was less than its cost; the financial condition of the issuer and any changes thereto; and the Company’s intent to sell, or whether it will more likely than not be required to sell, the security before recovery of its amortized cost basis. From this assessment, the Company concluded that the fair value of certain marketable equity securities exhibited a prolonged decline in share price due to deterioration of the issuer’s results; therefore, the decline in these marketable equity securities was considered OTTI. Accordingly, the Company recognized an impairment loss of $nil and $0.9 million in the Consolidated Statement of Operations and Comprehensive Income (Loss), for the three and nine months ended September 30, 2016, respectively. For the remaining marketable equity securities, the Company recorded a gain, net of tax, in other comprehensive income, of $0.3 million and $1.8 million for the three and nine months ended September 30, 2016. The gain was recorded in accumulated other comprehensive income and is reported as a separate line item in the shareholders' equity section of the balance sheet. During the three and nine months ended September 30, 2015, the Company recognized a loss, net of tax, in other comprehensive loss of $0.5 million and $1.1 million, respectively.

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- Definition The entire disclosure for cash, cash equivalents, investments in debt and equity instruments (including cost and equity investees and related income statement amounts), equity and cost method investments, investments in joint ventures and any other investment. + References No definition available. + Details
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