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Marketable Equity Securities
 12 Months Ended
Dec. 31, 2020
Marketable Securities [Abstract]  
Marketable Equity Securities

During 2020, Solitario received 137,255 shares of Vox upon conversion of the SilverStream Note, discussed above, valued at $294,000 and Solitario sold 2,900,000 shares of Vendetta common stock for proceeds of $123,000 and recorded a gain on sale $50,000. During 2019 Solitario acquired 3,450,000 shares of Vendetta through the purchase of the Vendetta units, discussed below, and recorded an increase in marketable equity securities of $165,000. Solitairo did not sell any marketable equity securities during 2019.

 

On July 31, 2019, Solitario purchased 3,450,000 Vendetta units for aggregate consideration of $233,000. Each unit consisted of one share of Vendetta common stock and one warrant which allows the holder to purchase one additional share of Vendetta common stock at a purchase price of Cdn$0.13 per share for a period of three years (the “Vendetta Warrants”). The purchase of the units increased Solitario’s holdings of Vendetta common shares to 14,450,000 shares. On the purchase date Solitario recorded marketable equity securities of $165,000 for the Vendetta shares acquired and $68,000 for the Vendetta Warrants based upon an allocation of the purchase price of the Vendetta units, based upon (i) the fair value of the Vendetta common shares received based upon the quoted market price for Vendetta common shares and (ii) the fair value of Vendetta Warrants based upon a Black Scholes model, using the stock price of Cdn$0.09, volatility of 79%, a term of three years and a discount rate of 1.5%. During 2020, Solitario charged gain on derivative instruments $29,000 for the change in the value of the Vendetta Warrants. During 2019, Solitario charged loss on derivative instruments $47,000 for the change in the value of the Vendetta Warrants.

 

At December 31, 2020 Solitario owns the following marketable equity securities:

 

   

Year ended

December 31 2020

  
    shares    

Fair value

(000’s)

  
  Kinross Gold Corp     100,000     $ 734  
  Vendetta Mining Corp.     11,550,000       544  
  Vox Royalty Corp.     137,255       323  
  TNR Gold Corp.     430,000       19  
      Total           $ 1,620  

 

The following tables summarize Solitario’s marketable equity securities and adjustments to fair value:

 

(in thousands)  

Year ended

December 31,

  
    2020     2019  
  Marketable equity securities at cost   $ 2,099     $ 1,879  
  Cumulative unrealized (loss) gain on marketable equity securities     (479 )     (840 )
  Marketable equity securities at fair value   $ 1,620     $ 1,039  

 

The following table represents changes in marketable equity securities:

 

(in thousands)  

Year ended

December 31,

  
    2020     2019  
Cost of marketable equity securities sold   $ 73     $ -  
Realized gain on marketable equity securities sold     50       -  
Proceeds from the sale of marketable equity securities sold     (123 )     -  
Net gain (loss) on marketable equity securities     410       (711 )
Additions to marketable equity securities     294       165  
Change in marketable equity securities at fair value   $ 581     $ (546 )

 

The following table represents the realized and unrealized gain (loss) on marketable equity securities:

 

(in thousands)  

Year ended

December 31,

  
    2020     2019  
  Unrealized gain (loss) on marketable equity securities   $ 360     $ (711 )
  Realized gain on marketable equity securities sold     50       -  
  Net gain (loss) on marketable equity securities   $ 410     $ (711 )