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Derivative Instruments

12 Months Ended

Dec. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Covered call options

From time-to-time Solitario has sold covered call options against its holdings of shares of common stock of Kinross Gold Corporation (“Kinross”) included in Marketable Equity Securities. 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 and any changes in the fair value of its covered calls are recognized in the statement of operations in the period of the change. During 2020, Solitario sold covered calls against its holdings of Kinross for cash proceeds of $103,000, and repurchased certain of its covered calls prior to expiration for $224,000. As of December 31, 2020, Solitario has no remaining liability, related to one outstanding Kinross call option which expired unexercised in January 2021. During 2019 Solitario sold covered calls against its holdings of Kinross for $9,000 in cash, all of which expired unexercised during 2019.

Vendetta Warrants

At both December 31, 2020 and 2019 Solitario held Vendetta Warrants which give Solitario the right to purchase 3,450,000 Vendetta common shares for Cdn$0.13 per share through July 31, 2022. At December 31, 2020, and 2019 Solitario recorded Vendetta Warrants at their fair value of $49,000 and $21,000, respectively, based upon a Black Scholes model.

The following items comprise gain (loss) on derivative instruments:

(in thousands)	Year ended December 31,
	2020			2019
(Loss) Gain on Kinross calls – realized	$	(121	)	$	9
Gain (loss) on Vendetta Warrants – unrealized		29			(47	)
	$	(92	)	$	(38	)