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INVESTMENTS | 12 Months Ended
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Dec. 31, 2017
INVESTMENTS |
INVESTMENTS | NOTE 3 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 December 31, 2017 and December 31, 2016:
|  |  |  |  |  |  |  |  |  |  | Other |  | Statement of |  |  |
|  | Opening |  | Additions |  | Disposals |  | Comprehensive |  | Operations |  | Fair Value
|  | balance |  | during |  | during |  | Income (Loss) |  | (Loss) |  | end of the
As of December 31, 2017 |  | (January 1) |  | year |  | year |  | (pre-tax) |  | Income |  | year
Marketable equity securities |  | $ | 6,749 |  | $ | — |  | $ | (2,163) |  | $ | 1,334 |  | $ | 484 |  | $ | 6,404
Warrants |  |  | 1,794 |  |  | — |  |  | — |  |  | — |  |  | (227) |  |  | 1,567
Investments |  | $ | 8,543 |  | $ | — |  | $ | (2,163) |  | $ | 1,334 |  | $ | 257 |  | $ | 7,971
|  |  |  |  |  |  |  |  |  |  | Other |  | Statement of |  |  |
|  | Opening |  | Additions |  | Disposals |  | Comprehensive |  | Operations |  | Fair Value
|  | balance |  | during |  | during |  | Income (Loss) |  | (Loss) |  | end of the
As of December 31, 2016 |  | (January 1) |  | year |  | year |  | (pre-tax) |  | Income |  | year
Marketable equity securities |  | $ | 1,032 |  | $ | 4,004 |  | $ | (470) |  | $ | 3,043 |  | $ | (860) |  | $ | 6,749
Warrants |  |  | — |  |  | 415 |  |  | — |  |  | — |  |  | 1,379 |  |  | 1,794
Investments |  | $ | 1,032 |  | $ | 4,419 |  | $ | (470) |  | $ | 3,043 |  | $ | 519 |  | $ | 8,543
As of December 31, 2017, the cost of the marketable equity securities and warrants was approximately $3.3 million (December 31, 2016 - $4.9 million). The gains and losses for available-for-sale securities are not reported in Net (Loss) Income of the Consolidated Statement of Operations and Comprehensive (Loss) Income until the securities are sold or if there is an other-than-temporary decline in fair value below cost. For the year ended December 31, 2017, the Company recorded a gain, net of tax, in other comprehensive income, of $1.8 million. 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. In the comparable period ending December 31, 2016, the Company recorded a gain, net of tax, in other comprehensive income, of $1.6 million. During the year ended December 31, 2017, the Company sold marketable equity securities for proceeds of $2.2 million. The Company realized a gain of $0.8 million, which is included in the Consolidated Statement of Operations and Comprehensive (Loss) Income. During the year ended December 31, 2016, marketable equity securities were sold for proceeds of $0.5 million for a realized gain of $0.1 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 an additional 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. The Company maintains a portfolio of warrants on equity interests in publicly-traded securities for investment purposes which are not used in any hedging activities. 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 (Loss) Income. During the year ended December 31, 2017, the Company recorded an unrealized loss of $0.2 million (December 31, 2016 – $1.4 million gain and December 31, 2015 – $nil, respectively). During the year ended December 31, 2017, 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 Statement of Operations and Consolidated (Loss) Income in the period any such determination is made. In making this judgment, the Company evaluated, among other factors, 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 $0.4 million in the Consolidated Statement of Operations and Comprehensive (Loss) Income for the year ended December 31, 2017. In the comparable periods ending December 31, 2016 and 2015, the Company recorded an impairment loss of $0.9 million and $nil, 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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