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Derivative Instruments
 12 Months Ended
Dec. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments

6. Derivative Instruments:

 

RMB warrants

 

The RMB Warrants, which entitled the holder to purchase a total of 1,624,748 shares of Solitario common stock, expired worthless on August 21, 2016. As of December 31, 2016, Solitario has no liability related to the RMB Warrants. Solitario recorded a $4,000 liability for the RMB Warrants as of December 31, 2015 for the fair value of the RMB Warrants based upon a Black-Scholes model. Solitario recorded a gain on derivative instruments of $4,000 for the year ended December 31, 2016 related to the expiration of the RMB Warrants.

 

Covered call options

 

From time to time Solitario has sold covered call options against its holdings of Kinross. The business purpose of selling covered calls is to provide additional income on a limited portion of shares of Kinross that Solitario may sell in the near term, which is generally defined as less than one year. Solitario has not designated its covered calls as hedging instruments as described in ASC 815, “Derivatives and Hedging,” and any changes in the fair value of its covered calls are recognized in the statement of operations in the period of the change. As of December 31, 2016, Solitario had two covered calls against its holdings of Kinross common stock, which had a fair value of $2,000. As of December 31 2015, all of the covered calls had expired unexercised and there were no liabilities related to those calls entered during each of the years.

 

Solitario recorded the following gain on derivative instruments:

(in thousands)

Year ended

December 31,

   2016 2015
  Gain on Kinross calls  $  43   $84 
  Gain on Vendetta Warrants 629  -  
  $672  $84 

 

The following table provides the location and amount of the fair values of Solitario's derivative instruments presented in the consolidated balance sheets as of December 31, 2016 and 2015:

  Derivatives
(in thousands) Balance Sheet Location 2016 2015
 Vendetta warrants Other assets $735  $  -  
 RMB warrants Other current liabilities $    -   $  4 
 Kinross calls Other current liabilities $    2  $  -