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Fair Value
 3 Months Ended
Mar. 31, 2014
Fair Value Disclosures [Abstract]  
Fair Value

7.        Fair value

 

For certain of Solitario’s financial instruments, including cash and cash equivalents, payables and short-term debt, the carrying amounts approximate fair value due to their short term maturities. Solitario’s marketable equity securities are carried at their estimated fair value primarily based on quoted market prices. The long-term debt associated with MH-LLC was carried at its estimated fair value based upon the discounted present value of the payments using an estimated discount rate and the RMB Warrants are carried at their estimated fair value based on a Black-Scholes option pricing model.

 

Solitario accounts for its financial instruments under ASC 820, "Fair Value Measurements." ASC 820 establishes a framework for measuring fair value and requires enhanced disclosures about fair value measurements. ASC 820 clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. ASC 820 also requires disclosure about how fair value is determined for assets and liabilities and establishes a hierarchy for which these assets and liabilities must be grouped, based on significant levels of inputs as follows:

 

·Level 1: quoted prices in active markets for identical assets or liabilities;
·Level 2: quoted prices in active markets for similar assets and liabilities and inputs that are observable for the asset or liability; or
·Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

 

The determination of where assets and liabilities fall within this hierarchy is based upon the lowest level of input that is significant to the fair value measurement. During the three months ended March 31, 2014 and 2013 there were no reclassifications in financial assets or liabilities between Level 1, 2 or 3 categories.

 

The following is a listing of Solitario’s financial assets and liabilities required to be measured at fair value on a recurring basis and where they are classified within the hierarchy as of March 31, 2014:

 

(in thousands) Level 1   Level 2   Level 3 Total  
Assets        
  Marketable equity securities $4,210  $      -    $-    $4,210 
Liabilities        
  RMB warrants -    400  -    400 
  Kinross calls 7      7 

 

The following is a listing of Solitario’s financial assets and liabilities required to be measured at fair value on a recurring basis and where they are classified within the hierarchy as of December 31, 2013:

 

(in thousands) Level 1 Level 2 Level 3 Total
Assets        
  Marketable equity securities $3,973  $      -    $-    $3,973 
Liabilities        
  RMB warrants -    140  -    140 
  Kinross calls 3      3