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Short Term Debt
 12 Months Ended
Dec. 31, 2013
Debt Disclosure [Abstract]  
Short Term Debt

4. Short-term debt:

 

Solitario maintained a secured credit line agreement with UBS Bank, USA (“UBS”) during 2013 and 2012. At December 31, 2013, the credit line is secured by all of Solitario’s assets held in its UBS brokerage account, consisting primarily of 600,000 Kinross shares. The UBS credit line may be terminated by UBS at any time by UBS or Solitario and any amounts outstanding must be repaid upon termination. The UBS credit line carries an interest rate which floats, based upon a base rate of 2.25% plus the one-month London Interbank Offered Rate ("LIBOR"), which is 0.17% as of December 31, 2013. The average interest rate was approximately 2.45% and 2.49%, respectively, for 2013 and 2012. UBS may change the base rate at any time. The UBS credit line provides that Solitario may borrow up to $2 million, subject to the value of the assets held in its brokerage account at UBS, and that Solitario maintain a minimum equity value percentage in its UBS brokerage account above 40%, based upon the value of its Kinross shares and any other assets held in Solitario's UBS brokerage account, less the value of its UBS credit line and any other balances owed to UBS. UBS may modify the minimum equity value percentage of the loan at any time. In addition, if the equity value in Solitario's UBS brokerage account falls below the minimum equity value, UBS may sell enough Kinross shares held in Solitario's UBS brokerage account or liquidate any other assets to restore the minimum equity value. At December 31, 2013, the equity value in Solitario's UBS brokerage account was 69%.

 

Solitario also maintained a short-term margin account with RBC Capital Markets, LLC ("RBC") during 2012, which was closed during 2013 and Solitario no longer has any short-term borrowing capacity with RBC. Solitario borrowed against its short-term margin account during 2012, which was repaid during 2012. During 2012, the loans carried interest at a margin loan rate of 4.25% per annum. At December 31, 2013, Solitario has no outstanding short-term debt owed to RBC.

 

The following tables summarize Solitario’s short-term debt:

  December 31,
  (in thousands) 2013 2012
  UBS short-term credit line    
      Beginning balance $ 1,500  $ 2,000 
        Borrowing 2,300  1,200 
        Repayments (2,998) (1,700)
      Ending balance 802  1,500 
  RBC short term margin loan    
      Beginning balance -    -   
        Borrowing -    1,465 
        Repayments -    (1,465)
      Ending balance     -          -   
    Total short-term margin loans $802   $1,500  

 

(in thousands) Year ended
December 31,
  2013 2012
Interest UBS short-term credit line $22  $36 
Interest RBC short-term margin loan -    22 
   Total interest short term margin loans $22  $58 

 

During 2013 Solitario capitalized all of its interest to mineral property. See Note 2, “Mineral properties,” above.