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Marketable Equity Securities
 9 Months Ended
Sep. 30, 2021
Marketable Equity Securities  
3. Marketable Equity Securities

3. Marketable Equity Securities

 

Solitario’s investments in marketable equity securities are carried at fair value, which is based upon quoted prices of the securities owned. The cost of marketable equity securities sold is determined by the specific identification method. Changes in fair value are recorded in the condensed consolidated statements of operations. During the three months ended September 30, 2021, Solitario recorded an unrealized gain on marketable equity securities of $50,000. During the nine months ended September 30, 2021, Solitario recorded an unrealized loss on marketable equity securities of $220,000. During the three and nine months ended September 30, 2020, Solitario recorded an unrealized gain on marketable equity securities of $333,000 and $584,000, respectively.

At September 30, 2021 and December 31, 2020 Solitario owns the following marketable equity securities:

 

 

 

September 30, 2021

 

 

December 31, 2020

 

 

 

shares

 

 

Fair value

(000’s)

 

 

shares

 

 

Fair value

(000’s)

 

Kinross Gold Corp

 

 

100,000

 

 

$536

 

 

 

100,000

 

 

$734

 

Vendetta Mining Corp.

 

 

10,040,000

 

 

 

357

 

 

 

11,550,000

 

 

 

544

 

Vox Royalty Corp.

 

 

134,055

 

 

 

333

 

 

 

137,255

 

 

 

323

 

TNR Gold Corp.

 

 

-

 

 

 

-

 

 

 

430,000

 

 

 

19

 

Total

 

 

 

 

 

$1,226

 

 

 

 

 

 

$1,620

 

 

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

 

(in thousands)

 

September 30,

2021

 

 

December 31,

2020

 

Marketable equity securities at cost

 

$1,925

 

 

$2,099

 

Cumulative unrealized loss on marketable equity securities

 

 

(699)

 

 

(479)

Marketable equity securities at fair value

 

$1,226

 

 

$1,620

 

 

The following table represents changes in marketable equity securities:

 

(in thousands)

 

Three months ended

September 30,

 

 

Nine months ended

September 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Cost of marketable equity securities sold

 

$105

 

 

$22

 

 

$174

 

 

$73

 

Realized (loss) gain on marketable equity securities sold

 

 

(89)

 

 

25

 

 

 

(70)

 

 

50

 

Proceeds from the sale of marketable equity securities sold

 

 

(16)

 

 

(47)

 

 

(104)

 

 

(123)

Net (loss) gain on marketable equity securities

 

 

(39)

 

 

358

 

 

 

(290)

 

 

634

 

Additions to marketable equity securities

 

 

-

 

 

 

-

 

 

 

-

 

 

 

294

 

Change in marketable equity securities at fair value

 

$(55)

 

$311

 

 

$(394)

 

$805

 

 

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

 

(in thousands)

 

Three months ended

September 30,

 

 

Nine months ended

September 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Unrealized (loss) gain on marketable securities

 

$50

 

 

$333

 

 

$(220)

 

$584

 

Realized (loss) gain on marketable equity securities sold

 

 

(89)

 

 

25

 

 

 

(70)

 

 

50

 

Net (loss) gain on marketable securities

 

$(39)

 

$358

 

 

$(290)

 

$634

 

 

During the nine months ended September 30, 2021, Solitario sold (i) 430,000 shares of TNR Gold Corp. common stock for proceeds of $26,000 and recorded a gain on sale of $19,000; (ii) 1,510,000 shares of Vendetta Mining Corp. (“Vendetta) common stock for proceeds of $69,000 and recorded a loss on sale of $91,000; and (iii) 3,200 shares of Vox for proceeds of $9,000 and recorded a gain on sale of $2,000.

 

Solitario sold 2,900,000 shares of Vendetta common stock during the nine months ended September 30, 2020 for proceeds of $123,000 and recorded a gain on sale of $50,000 on the date of sale.

 

On May 19, 2020, Solitario received 137,255 shares of Vox upon conversion of the SilverStream Note, discussed above, valued at $294,000.