Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 06, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | SOLITARIO ZINC CORP. | |
Entity Central Index Key | 0000917225 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Is Entity's Reporting Status Current? | Yes | |
Is Entity Emerging Growth Company? | false | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Common Stock, Shares Outstanding | 58,142,866 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2019 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 538 | $ 117 |
Short-term investments | 9,595 | 10,223 |
Investments in marketable equity securities, at fair value | 1,259 | 1,585 |
Prepaid expenses and other | 436 | 211 |
Total current assets | 11,828 | 12,136 |
Mineral properties | 15,617 | 15,657 |
Other assets | 176 | 110 |
Total assets | 27,621 | 27,903 |
Current liabilities: | ||
Accounts payable | 692 | 688 |
Operating lease liability | 38 | |
Total current liabilities | 730 | 688 |
Long-term liabilities | ||
Asset retirement obligation – Lik | 125 | 125 |
Operating lease liability | 82 | |
Total long-term liabilities | 163 | 125 |
Shareholders’ equity: | ||
Preferred stock, $0.01 par value, authorized 10,000,000 shares (none issued and outstanding at March 31, 2019 and December 31, 2018) | ||
Common stock, $0.01 par value, authorized 100,000,000 shares (58,143,566 and 58,171,466 shares, respectively, issued and outstanding at March 31, 2019 and December 31, 2018) | 582 | 582 |
Additional paid-in capital | 69,952 | 69,873 |
Accumulated deficit | (43,806) | (43,365) |
Total shareholders’ equity | 26,728 | 27,090 |
Total liabilities and shareholders’ equity | $ 27,621 | $ 27,903 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
Preferred stock | ||
Preferred stock, par value | $ .01 | $ .01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock | ||
Common stock, par value | $ .01 | $ .01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 58,143,566 | 58,171,466 |
Common stock, shares outstanding | 58,143,566 | 58,171,466 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Revenue, net – mineral property sale | $ 408 | |
Costs, expenses and other: | ||
Exploration expense | 163 | 180 |
Depreciation | 7 | 6 |
General and administrative | 425 | 403 |
Total costs, expenses and other | 595 | 589 |
Interest income (net) | 72 | 26 |
Unrealized (loss) on marketable equity securities | (326) | (441) |
Total other loss | (254) | (415) |
Net loss | $ (441) | $ (1,004) |
Basic and diluted | $ (0.01) | $ (0.02) |
Weighted average shares outstanding: | ||
Basic and diluted | 58,158 | 58,444 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Operating activities: | ||
Net loss | $ (441) | $ (1,004) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 7 | 6 |
Non-cash office lease expense | 10 | |
Unrealized loss of marketable equity securities | 326 | 441 |
Employee stock option expense | 88 | 10 |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other assets | 64 | 32 |
Note receivable, net of mineral property sold | (223) | |
Accounts payable and other current liabilities | (3) | 24 |
Net cash used in operating activities | (172) | (491) |
Investing activities: | ||
Sale of short-term investments, net | 602 | 408 |
Purchase of other assets | (8) | |
Net cash provided by investing activities | 602 | 400 |
Financing activities: | ||
Purchase of common stock for cancellation | (9) | (26) |
Net cash used in financing activities | (9) | (26) |
Net increase (decrease) in cash and cash equivalents | 421 | (117) |
Cash and cash equivalents, beginning of period | 117 | 214 |
Cash and cash equivalents, end of period | $ 538 | $ 97 |
Business and Significant Accoun
Business and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Business and Significant Accounting Policies | 1. Business and Significant Accounting Policies Business and company formation Solitario Zinc Corp. (“Solitario,” or the “Company”) is an exploration stage company as defined in Industry Guide 7, as issued by the United States Securities and Exchange Commission (“SEC”). Solitario was incorporated in the state of Colorado on November 15, 1984 as a wholly-owned subsidiary of Crown Resources Corporation ("Crown"). In July 1994, Solitario became a publicly traded company on the Toronto Stock Exchange (the "TSX") through its initial public offering. Solitario has been actively involved in mineral exploration since 1993. Solitario’s primary business is to acquire exploration mineral properties or royalties and/or discover economic deposits on its mineral properties and advance these deposits, either on its own or through joint ventures, up to the development stage. At that point, or sometime prior to that point, Solitario would likely attempt to sell its mineral properties, pursue their development either on its own, or through a joint venture with a partner that has expertise in mining operations, or create a royalty with a third party that continues to advance the property. Solitario is primarily focused on the acquisition and exploration of zinc-related exploration mineral properties, however Solitario will evaluate and acquire other base and precious metal mineral exploration properties. In addition to focusing on its mineral exploration properties and the evaluation of mineral properties for acquisition, Solitario also evaluates potential strategic transactions for the acquisition of new precious and base metal properties and assets with exploration potential or business combinations that Solitario determines to be favorable to Solitario. Solitario has recorded revenue in the past from the sale of mineral property, including the sale of certain mineral royalty properties in January 2019, discussed below, the sale in June 2018 of its interest in the royalty on the Yanacocha property. In addition, Solitario has received proceeds from the sale in 2015 of its former interest in Mount Hamilton LLC (“MH-LLC”) the owner of its former Mt. Hamilton project, and joint venture property payments and the sale of a royalty on its former Mt. Hamilton project. Revenues and / or proceeds from the sale or joint venture of properties or assets, although significant when they occur, have not been a consistent annual source of cash and would only occur in the future, if at all, on an infrequent basis. Solitario currently considers its carried interest in the Florida Canyon project and its interest in the Lik project to be its core mineral property assets. Nexa Resources, Ltd. (“Nexa”), Solitario’s joint venture partner, is expected to continue the exploration and furtherance of the Florida Canyon project and Solitario is monitoring progress at Florida Canyon. Solitario is working with its 50% joint venture partner, Teck American Incorporated, a wholly-owned subsidiary of Teck Resources Limited (both companies are referred to as “Teck”), in the Lik deposit to further the exploration and evaluate potential development plans for the Lik project. As of March 31, 2019, Solitario has significant balances of cash and short-term investments that Solitario anticipates using, in part, to further the exploration of the Florida Canyon and Lik projects and to potentially acquire additional mineral property assets. The The accompanying interim condensed consolidated financial statements of Solitario for the three months ended March 31, 2019 are unaudited and are prepared in accordance with accounting principles generally accepted in the United States of America (“generally accepted accounting principles”). They do not include all disclosures required by generally accepted accounting principles for annual financial statements, but in the opinion of management, include all adjustments, consisting only of normal recurring items, necessary for a fair presentation. Interim results are not necessarily indicative of results, which may be achieved in the future or for the full year ending December 31, 2019. These financial statements should be read in conjunction with the financial statements and notes thereto which are included in Solitario’s Annual Report on Form 10-K for the year ended December 31, 2018. The accounting policies set forth in those annual financial statements are the same as the accounting policies utilized in the preparation of these financial statements, except as modified for appropriate interim financial statement presentation. Recent Developments Royalty sale On January 22, 2019, Solitario completed the sale of its interest in certain royalties to SilverStream SEZC (“SilverStream”), a private Cayman Island royalty and streaming company for Cdn$600,000 (the “Royalty Sale”). The Royalty Sale covered (i) a royalty on the formerly Solitario-owned 125,000-acre polymetallic Pedra Branca palladium, platinum, gold, nickel, cobalt and chrome project in Brazil, (ii) a royalty covering 3,880-acres of non-producing exploration properties in Mexico, and (iii) a purchase option on 11 separate non-producing properties covering over 16,500 acres in Montana. On closing of the Royalty Sale, Solitario received Cdn$250,000 in cash and a convertible note from SilverStream for Cdn$350,000 (the “SilverStream Note”). The SilverStream Note is due December 31, 2019, pays 5% per annum simple interest quarterly, and is convertible into common shares of SilverStream, at the discretion of SilverStream, by providing Solitario a notice of conversion. SilverStream may only provide a notice of conversion if SilverStream has completed an initial public offering during the term of the SilverStream Note for minimum proceeds of Cdn$5,000,000. Per the terms of the SilverStream Note, if converted, Solitario would receive common shares converted at 85% of the weighted average quoted price of a share of SilverStream common stock for the most recent 10-day period prior to the notice of conversion. During the three months ended March 31, 2019, Solitario recorded mineral property revenue of $408,000 for the Royalty Sale, consisting of the fair value of the cash received on the date of the sale of $185,000 and the fair value of the SilverStream Note on the date of the sale of $263,000 less the carrying value of the royalties sold of $40,000. As of March 31, 2019, the approximate fair value of the SilverStream Note was $262,000, based upon the current US Dollar / Canadian Dollar exchange rate, and Solitario recorded a charge to exchange gain and loss of $1,000, included in general and administrative expense during the three months ended March 31, 2019. Financial reporting The consolidated financial statements include the accounts of Solitario and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. The consolidated financial statements are prepared in accordance with generally accepted accounting principles and are expressed in U.S. dollars. Revenue recognition Solitario has recorded revenue from the sale of exploration mineral properties and joint venture property payments. Solitario’s policy is to recognize revenue from the sale of its exploration mineral properties (those without reserves) on a property by property basis, computed as the cash received and / or collectable receivables less any capitalized cost. Payments received for the sale of exploration property interests that are less than the properties cost are recorded as a reduction of the related property's capitalized cost. In addition, Solitario’s policy is to recognize revenue on any receipts of joint venture property payments in excess of its capitalized costs on a property that Solitario may lease to another mining company. Solitario has recognized revenue during the three months ended March 31, 2019 of $408,000 related to the Royalty Sale, discussed above in accordance with Accounting Standards Codification (“ASC”) 606. In addition, Solitario recorded revenue during the second quarter of 2018 for the first time in more than five years of $502,000 from the sale of its Yanacocha exploration mineral property. Solitario expects any property sales in the future to also be on an infrequent basis. Prior to the sale of its Yanacocha exploration mineral property, the last proceeds from joint venture property payments was in 2015 and Solitario does not expect to record joint venture property payments on any of its currently held properties for the foreseeable future. Historically, Solitario’s revenues have been infrequent and significant individual transactions and have only been from sales to well known or vetted mining companies. Solitario has never had a return on any of its sales recorded as revenue in its history and does not anticipate it will recognize any estimated returns on its current or future recorded revenues. Use of estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Some of the more significant estimates included in the preparation of Solitario's financial statements pertain to: (i) Solitario’s carrying value of short-term investments; (ii) the recoverability of mineral properties related to its mineral exploration properties and their future exploration potential; (iii) the fair value of stock option grants to employees, to officers and directors and to others; (iv) the ability of Solitario to realize its deferred tax assets; and (v) Solitario's investment in marketable equity securities. In performing its activities, Solitario has incurred certain costs for mineral properties. The recovery of these costs is ultimately dependent upon the sale of mineral property interests or the development of economically recoverable ore reserves and the ability of Solitario to obtain the necessary permits and financing to successfully place the properties into production, and upon future profitable operations, none of which is assured. Cash equivalents Cash equivalents include investments in highly liquid money-market securities with original maturities of three months or less when purchased. As of March 31, 2019, $516,000 of Solitario’s cash and cash equivalents are held in brokerage accounts and foreign banks, which are not covered under the Federal Deposit Insurance Corporation (“FDIC”) rules for the United States. Short-term investments As of March 31, 2019, Solitario has $9,277,000 of its current assets in United States Treasury Securities (“USTS”) with maturities of 15 days to 20 months. The USTS are recorded at their fair value, based upon quoted market prices and are not covered under the FDIC insurance rules for United States deposits. Solitario’s USTS are highly liquid and may be sold in their entirety at any time at their quoted market price and are classified as a current asset. Mineral properties Solitario expenses all exploration costs incurred on its mineral properties prior to the establishment of proven and probable reserves through the completion of a feasibility study. Initial acquisition costs of its mineral properties are capitalized. Solitario regularly performs evaluations of its investment in mineral properties to assess the recoverability and/or the residual value of its investments in these assets. All long-lived assets are reviewed for impairment whenever events or circumstances change which indicate the carrying amount of an asset may not be recoverable, utilizing established guidelines based upon undiscounted future net cash flows from the asset or upon the determination that certain exploration properties do not have sufficient potential for economic mineralization. Leases Solitario accounts for its leases in accordance with ASC 842, Leases Derivative instruments Solitario accounts for its derivative instruments in accordance ASC 815. Solitario has entered into covered calls from time to time on its investment in Kinross Gold Corporation (“Kinross”) marketable equity securities. Solitario has not designated its covered calls as hedging instruments and any changes in the fair value of the covered calls are recognized in the statement of operations in the period of the change as gain or loss on derivative instruments. Fair value ASC 820 established a framework for measuring fair value of financial instruments and required disclosures about fair value measurements. For certain of Solitario's financial instruments, including cash and cash equivalents and accounts payable, the carrying amounts approximate fair value due to their short-term maturities. Solitario's short-term investments in USTS and CDs, its marketable equity securities and any covered call options against those marketable equity securities are carried at their estimated fair value based on quoted market prices. See Note 6, “Fair Value,” below. 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. Solitario records investments in marketable equity securities for investments in publicly traded marketable equity securities for which it does not exercise significant control and where Solitario has no representation on the board of directors of those companies and exercises no control over the management of those companies. The cost of marketable equity securities sold is determined by the specific identification method. Changes in fair value are recorded as unrealized gain or loss in the statement of operations. Foreign exchange The United States dollar is the functional currency for all of Solitario's foreign subsidiaries. Although Solitario's South American exploration activities during 2018 and the first quarter of 2019 have been conducted primarily in Peru, a portion of the payments under the land, leasehold and exploration agreements of Solitario are denominated in United States dollars. Realized foreign currency gains and losses are included in the results of operations in the period in which they occur. Income taxes Solitario accounts for income taxes in accordance with ASC 740, “Accounting for Income Taxes” (“ASC 740”). Under ASC 740, income taxes are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently due plus deferred taxes related to certain income and expenses recognized in different periods for financial and income tax reporting purposes. Deferred tax assets and liabilities represent the future tax return consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. Deferred taxes are also recognized for operating losses and tax credits that are available to offset future taxable income and income taxes, respectively. A valuation allowance is provided if it is more likely than not that some portion or all of the deferred tax assets will not be realized. Accounting for uncertainty in income taxes ASC 740 clarifies the accounting for uncertainty in income taxes recognized in a company's financial statements. ASC 740 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. ASC 740 provides that a company's tax position will be considered settled if the taxing authority has completed its examination, the company does not plan to appeal, and it is remote that the taxing authority would reexamine the tax position in the future. Earnings per share The calculation of basic and diluted earnings (loss) per share is based on the weighted average number of shares of common stock outstanding during the three months ended March 31, 2019 and 2018. Potentially dilutive shares related to outstanding common stock options of 4,373,000 and 2,082,428, respectively, for Solitario common shares for the three months ended March 31, 2019 and 2018 were excluded from the calculation of diluted earnings (loss) per share because the effects were anti-dilutive. Employee stock compensation and incentive plans Solitario classifies all of its stock options as equity options in accordance with the provisions of ASC 718, “Compensation – Stock Compensation.” Recent accounting pronouncements On January 1, 2019, Solitario adopted Accounting Standards Update No. 2016-02 Leases |
Mineral Property
Mineral Property | 3 Months Ended |
Mar. 31, 2019 | |
Extractive Industries [Abstract] | |
Mineral Property | 2. Mineral Property The following table details Solitario’s investment in Mineral Property: (in thousands) March 31, December 31, 2019 2018 Exploration Lik project (Alaska – US) $15,611 $15,611 La Promesa (Peru) 6 6 Montana Royalty property (US) - 40 Total exploration mineral property $15,617 $15,657 All exploration costs on our exploration properties, none of which have proven and probable reserves, including any additional costs incurred for subsequent lease payments or exploration activities related to our projects are expensed as incurred. Royalty sale On January 22, 2019, Solitario completed the Royalty Sale, discussed above under “Recent Developments” to SilverStream for Cdn$600,000. On closing of the Royalty Sale, Solitario received Cdn$250,000 in cash and the SilverStream Note for Cdn$350,000, with a maturity date of December 31 2019. During the three months ended March 31, 2019, Solitario recorded mineral property revenue of $408,000 for the Royalty Sale, consisting of the fair value of the cash received on the date of the sale of $185,000 and the fair value of the SilverStream Note on the date of the sale of $263,000 less the carrying value of the royalties sold of $40,000. Exploration expense The following items comprised exploration expense: (in thousands) Three months ended 2019 2018 Geologic and field expenses $147 $24 Administrative 16 156 Total exploration costs $ 163 $ 180 Asset Retirement Obligation In connection with the acquisition of the Lik project in 2017, Solitario recorded an asset retirement obligation of $125,000 for Solitario’s estimated reclamation cost of the existing disturbance at the Lik project. This disturbance consists of an exploration camp including certain drill sites and access roads at the camp. The estimate was based upon estimated cash costs for reclamation as determined by the permitting bond required by the State of Alaska, for which Solitario has purchased a reclamation bond insurance policy in the event Solitario or its 50% partner, Teck, do not complete required reclamation. Solitario has not applied a discount rate to the recorded asset retirement obligation as the estimated time frame for reclamation is not currently known, as reclamation is not expected to occur until the end of the Lik project life, which would follow future development and operations, the start of which cannot be estimated or assured at this time. Additionally, no depreciation will be recorded on the related asset for the asset retirement obligation until the Lik project goes into operation, which cannot be assured. |
Marketable Equity Securities
Marketable Equity Securities | 3 Months Ended |
Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
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 market value are recorded in the condensed consolidated statement of operations. During the three months ended March 31, 2019, Solitario recorded an unrealized loss on marketable equity securities of $326,000. During the three months ended March 31, 2018, Solitario recorded an unrealized loss on marketable equity securities of $441,000. The following tables summarize Solitario’s marketable equity securities and adjustments to fair value: (in thousands) March 31, 2019 December 31, 2018 Marketable equity securities at cost $1,714 $1,714 Cumulative unrealized loss on marketable equity securities (455) (129) Marketable equity securities at fair value $1,259 $1,585 The following table represents changes, including sales, in marketable equity securities during the three months ended March 31, 2019 and 2018: (in thousands) Three months ended 2019 2018 Gross (loss) recorded in the statement of operations $(326) $(441) Change in marketable equity securities at fair value $(326) $(441) Solitario did not sell any marketable equity securities during the three months ended March 31, 2019 or 2018 and the change in the fair value of marketable equity securities was related entirely to the unrealized loss on marketable equity securities related to their fair values based upon quoted market prices for the marketable equity securities held by Solitario during the periods. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | 4. Leases Solitario adopted ASU 2016-02 effective January 1, 2019 and accounts for its leases in accordance with ASC 842. Solitario leases one facility, its Wheat Ridge, Colorado office (the “WR Lease”), that has a term of more than one year. Solitario has no other material operating lease costs. The WR Lease is classified as an operating lease and has a term of 23 months at March 31, 2019, with no renewal option. At March 31, 2019, the right-of-use office lease asset for the WR Lease is classified as other assets and the related liability separated between current and non-current office lease liabilities in the condensed consolidated balance sheet. Lease expense is recognized on a straight-line basis over the lease term, with variable lease payments recognized in the period those payments are incurred. During the three months ended March 31, 2019, Solitario recognized $10,000 of non-cash lease expense for the WR Lease included in general and administrative expense. Cash lease payments of $7,000 were made on the WR Lease during the three months ended March 31, 2019 and this amount, less $1,000 of imputed interest, reduced the related liability on the WR Lease. The discount rate within the WR Lease is not determinable and Solitario has applied a discount rate of 5% based upon Solitario’s estimate of its cost of capital. The maturities of Solitario’s lease liability for its WR Lease are as follows at March 31, 2019: (in thousands) 2019 $ 31 2020 42 2021 7 Total lease payments 80 Less amount of payments representing interest (4) Present value of lease payments $ 76 Supplemental cash flow information related to our operating lease was as follows for the period ended March 31, 2019: (in thousands) Three months ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash outflows from WR Lease payments $ 7 Non-cash amounts related to the WR lease Leased assets recorded in exchange for new operating lease liabilities $82 |
Other Assets
Other Assets | 3 Months Ended |
Mar. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | 5 Other Assets The following items comprised other assets: (in thousands) March 31, December 31 2019 2018 Furniture and fixtures, net of accumulated depreciation $ 34 $ 36 Lik project equipment, net of accumulated depreciation 65 70 Exploration bonds and other assets 4 4 Office lease asset 73 - Total other assets $176 $110 |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 6. Fair Value Solitario accounts for its financial instruments under ASC 820. For certain of Solitario’s financial instruments, including cash and cash equivalents and payables, the carrying amounts approximate fair value due to their short-term maturities. Solitario’s short-term investments in USTS, and marketable equity securities are carried at their estimated fair value primarily based on quoted market prices. During the three months ended March 31, 2019 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, 2019: (in thousands) Level 1 Level 2 Level 3 Total Assets Short-term investments $9,595 $ - $ $9,595 Marketable equity securities 1,259 - - 1,259 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, 2018: (in thousands) Level 1 Level 2 Level 3 Total Assets Short-term investments $10,223 $ - $ - $10,223 Marketable equity securities $ 1,585 $ - $ - $ 1,585 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7. Income Taxes Solitario accounts for income taxes in accordance with ASC 740. Under ASC 740, income taxes are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently due plus deferred taxes related to certain income and expenses recognized in different periods for financial and income tax reporting purposes. Deferred tax assets and liabilities represent the future tax return consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. Deferred taxes are also recognized for operating losses and tax credits that are available to offset future taxable income and income taxes, respectively. A valuation allowance is provided if it is more likely than not that some portion or all of the deferred tax assets will not be realized. At March 31, 2019 and December 31, 2018, a valuation allowance has been recorded, which fully offsets Solitario’s net deferred tax assets, because it is more likely than not that the Company will not realize some portion or all of its deferred tax assets. The Company continually assesses both positive and negative evidence to determine whether it is more likely than not that the deferred tax assets can be realized prior to their expiration. During the three months ended March 31, 2019 and 2018, Solitario recorded no deferred tax expense. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 8. Commitments and contingencies Solitario has recorded an asset retirement obligation of $125,000 related to its Lik project in Alaska. See Note 2, “Mineral Properties,” above. In August of 2018, Solitario agreed to fund a portion of a 2018 – 2019 drilling program at the Florida Canyon project. Per the agreement, Solitario will fund up to $1,580,000 of a planned 41-hole 17,000-meter drilling program to be conducted through December 31, 2019 (the “Drilling Program”). Upon Nexa completing the first 1,700 meters of the Drilling Program, Solitario will pay Nexa $527,000, upon completion of the next 1,700 meters (3,400 meters total) of the Drilling Program, Solitario will pay Nexa $527,000, and upon completion of the next 1,700 meters (5,100 meters total) of the Drilling Program, Solitario will pay Nexa the balance remaining on its $1,580,000 funding commitment, or $526,000. Solitario has no obligation to pay Nexa prior to the attainment of the separate 1,700-meter thresholds. The funding commitments are in the form of an advance on Solitario’s commitment to fund 30% of any future development of Florida Canyon under the existing joint venture agreement with Nexa. Accordingly, in the event Florida Canyon is developed, which cannot be assured at this time, any funds paid to Nexa under this agreement, will reduce the amount of Solitario’s obligation to fund 30% of future development costs, and / or repay loans from Nexa for future development costs at the Florida Canyon project. During 2018, Nexa completed four holes and a total of 2,203 meters under the Drilling Program and Solitario recorded a charge to exploration expense of $527,000. As of March 31, 2019, Solitario has recorded an account payable to Nexa of $527,000, which was paid in April 2019. Should Nexa complete the remaining 2,897 meters (5,100 meters less the completed 2,203 meters) during the remainder of 2019, Solitario will be obligated to pay Nexa $1,053,000 during 2019. |
Employee Stock Compensation Pla
Employee Stock Compensation Plans | 3 Months Ended |
Mar. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Employee Stock Compensation Plans | 9. Employee Stock Compensation Plans On June 18, 2013, Solitario’s shareholders approved the 2013 Solitario Exploration & Royalty Corp. Omnibus Stock and Incentive Plan (the “2013 Plan”). Under the terms of the 2013 Plan, a total of 1,750,000 shares of Solitario common stock were reserved for awards to directors, officers, employees and consultants. On June 29, 2017, Solitario shareholders approved an amendment to the 2013 Plan, which increased the number of shares of common stock available for issuance under the 2013 Plan from 1,750,000 to 5,750,000. Awards granted under the 2013 Plan may take the form of stock options, stock appreciation rights, restricted stock, and restricted stock units. The terms and conditions of the awards are pursuant to the 2013 Plan and are granted by the Board of Directors or a committee appointed by the Board of Directors. As of March 31, 2019, and December 31, 2018 there were options outstanding that are exercisable to acquire 4,373,000 and 5,223,160 shares, respectively, of Solitario common stock, with option prices between $0.28 and $0.77 per share. During the three months ended March 31, 2019, Solitario granted options exercisable into 150,000 shares of common stock, with an exercise price of $0.28 per share, a five-year term, and a grant date fair value of $23,000 based upon a Black-Scholes model, with a 64% volatility and a 2.4% risk-free interest rate. In addition, during the three months ended March 31, 2019, options exercisable into 1,000,160 shares of common stock, with exercise prices between $1.68 and $0.70 per share, expired unexercised. During the three months ended March 31, 2018, Solitario granted options exercisable into 100,000 shares to a consultant, with an exercise price of $0.62 per share, a seven-month term and a grant date fair value of $12,000 based upon a Black-Scholes model with a 66% volatility and a 1% risk-free interest rate. There were no exercises of options under the 2013 Plan during the three months ended March 31, 2019 and 2018. During the three months ended March 31, 2019 and 2018, Solitario recorded stock option compensation expense of $88,000 and $10,000. At March 31, 2019, the total unrecognized stock option compensation cost related to non-vested options is $572,000 and is expected to be recognized over a weighted average period of 22 months. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Shareholders' Equity | 10. Shareholders’ Equity Shareholders’ Equity for the three months ended March 31, 2018: (in thousands, except Accumulated Share amounts) Common Common Additional Other Total Stock Stock Paid-in Accumulated Comprehensive Shareholders’ Shares Amount Capital Deficit Income Equity Balance at December 31, 2017 58,434,566 584 $69,312 $(40,343) $ 576 $30,129 Cumulative-effect adjustment change in accounting principle - - - 576 (576) - Adjusted balance January 1, 2018 58,434,566 584 69,312 (39,767) - 30,129 Stock option expense - - 10 - - 10 Purchase of shares for cancellation (52,614) - (26) - - (26) Net loss - - - (1,004) - (1,004) Balance at March 31, 2018 58,381,952 $584 $69,296 $(40,771) $ - $29,109 Solitario adopted ASU No. 2016-01 in the first quarter of 2018. ASU No. 2016-01 revised the classification and measurement of investment in certain equity investments and the presentation of certain fair value changes for certain financial liabilities measured at fair value. ASU No. 2016-01 requires the change in fair value of many equity investments to be recognized in net income. Solitario recorded a cumulative-effect adjustment for the change in accounting principle to retained earnings of $576,000 related to the adoption of ASU 2016-01. Shareholders’ Equity for the three months ended March 31, 2019: (in thousands, except Share amounts) Common Common Additional Total Stock Stock Paid-in Accumulated Shareholders’ Shares Amount Capital Deficit Equity Balance at December 31, 2018 58,171,466 582 $69,873 $(43,365) $27,090 Stock option expense - - 88 - 88 Purchase of shares for cancellation (27,900) - (9) - (9) Net loss - - - (441) (441) Balance at March 31, 2019 58,143,566 $582 $69,952 $(43,806) $26,728 Share Repurchase Program On October 28, 2015, Solitario’s Board of Directors approved a share repurchase program that authorized Solitario to purchase up to two million shares of its outstanding common stock. During 2018, Solitario’s Board of Directors extended the expiration date of the share repurchase program through December 31, 2019. During the three months ended March 31, 2019 and 2018, Solitario purchased 27,900 and 52,614 shares of Solitario common stock, respectively, for an aggregate purchase price of $9,000 and $26,000, respectively. As of March 31, 2019, Solitario has purchased a total of 958,800 shares for an aggregate purchase price of $458,000 under the share repurchase program since its inception. |
Business and Significant Acco_2
Business and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
1. Business and Significant Accounting Policies | 1. Business and Significant Accounting Policies Business and company formation Solitario Zinc Corp. (“Solitario,” or the “Company”) is an exploration stage company as defined in Industry Guide 7, as issued by the United States Securities and Exchange Commission (“SEC”). Solitario was incorporated in the state of Colorado on November 15, 1984 as a wholly-owned subsidiary of Crown Resources Corporation ("Crown"). In July 1994, Solitario became a publicly traded company on the Toronto Stock Exchange (the "TSX") through its initial public offering. Solitario has been actively involved in mineral exploration since 1993. Solitario’s primary business is to acquire exploration mineral properties or royalties and/or discover economic deposits on its mineral properties and advance these deposits, either on its own or through joint ventures, up to the development stage. At that point, or sometime prior to that point, Solitario would likely attempt to sell its mineral properties, pursue their development either on its own, or through a joint venture with a partner that has expertise in mining operations, or create a royalty with a third party that continues to advance the property. Solitario is primarily focused on the acquisition and exploration of zinc-related exploration mineral properties, however Solitario will evaluate and acquire other base and precious metal mineral exploration properties. In addition to focusing on its mineral exploration properties and the evaluation of mineral properties for acquisition, Solitario also evaluates potential strategic transactions for the acquisition of new precious and base metal properties and assets with exploration potential or business combinations that Solitario determines to be favorable to Solitario. Solitario has recorded revenue in the past from the sale of mineral property, including the sale of certain mineral royalty properties in January 2019, discussed below, the sale in June 2018 of its interest in the royalty on the Yanacocha property. In addition, Solitario has received proceeds from the sale in 2015 of its former interest in Mount Hamilton LLC (“MH-LLC”) the owner of its former Mt. Hamilton project, and joint venture property payments and the sale of a royalty on its former Mt. Hamilton project. Revenues and / or proceeds from the sale or joint venture of properties or assets, although significant when they occur, have not been a consistent annual source of cash and would only occur in the future, if at all, on an infrequent basis. Solitario currently considers its carried interest in the Florida Canyon project and its interest in the Lik project to be its core mineral property assets. Nexa Resources, Ltd. (“Nexa”), Solitario’s joint venture partner, is expected to continue the exploration and furtherance of the Florida Canyon project and Solitario is monitoring progress at Florida Canyon. Solitario is working with its 50% joint venture partner, Teck American Incorporated, a wholly-owned subsidiary of Teck Resources Limited (both companies are referred to as “Teck”), in the Lik deposit to further the exploration and evaluate potential development plans for the Lik project. As of March 31, 2019, Solitario has significant balances of cash and short-term investments that Solitario anticipates using, in part, to further the exploration of the Florida Canyon and Lik projects and to potentially acquire additional mineral property assets. The The accompanying interim condensed consolidated financial statements of Solitario for the three months ended March 31, 2019 are unaudited and are prepared in accordance with accounting principles generally accepted in the United States of America (“generally accepted accounting principles”). They do not include all disclosures required by generally accepted accounting principles for annual financial statements, but in the opinion of management, include all adjustments, consisting only of normal recurring items, necessary for a fair presentation. Interim results are not necessarily indicative of results, which may be achieved in the future or for the full year ending December 31, 2019. These financial statements should be read in conjunction with the financial statements and notes thereto which are included in Solitario’s Annual Report on Form 10-K for the year ended December 31, 2018. The accounting policies set forth in those annual financial statements are the same as the accounting policies utilized in the preparation of these financial statements, except as modified for appropriate interim financial statement presentation. Recent Developments Royalty sale On January 22, 2019, Solitario completed the sale of its interest in certain royalties to SilverStream SEZC (“SilverStream”), a private Cayman Island royalty and streaming company for Cdn$600,000 (the “Royalty Sale”). The Royalty Sale covered (i) a royalty on the formerly Solitario-owned 125,000-acre polymetallic Pedra Branca palladium, platinum, gold, nickel, cobalt and chrome project in Brazil, (ii) a royalty covering 3,880-acres of non-producing exploration properties in Mexico, and (iii) a purchase option on 11 separate non-producing properties covering over 16,500 acres in Montana. On closing of the Royalty Sale, Solitario received Cdn$250,000 in cash and a convertible note from SilverStream for Cdn$350,000 (the “SilverStream Note”). The SilverStream Note is due December 31, 2019, pays 5% per annum simple interest quarterly, and is convertible into common shares of SilverStream, at the discretion of SilverStream, by providing Solitario a notice of conversion. SilverStream may only provide a notice of conversion if SilverStream has completed an initial public offering during the term of the SilverStream Note for minimum proceeds of Cdn$5,000,000. Per the terms of the SilverStream Note, if converted, Solitario would receive common shares converted at 85% of the weighted average quoted price of a share of SilverStream common stock for the most recent 10-day period prior to the notice of conversion. During the three months ended March 31, 2019, Solitario recorded mineral property revenue of $408,000 for the Royalty Sale, consisting of the fair value of the cash received on the date of the sale of $185,000 and the fair value of the SilverStream Note on the date of the sale of $263,000 less the carrying value of the royalties sold of $40,000. As of March 31, 2019, the approximate fair value of the SilverStream Note was $262,000, based upon the current US Dollar / Canadian Dollar exchange rate, and Solitario recorded a charge to exchange gain and loss of $1,000, included in general and administrative expense during the three months ended March 31, 2019. Financial reporting The consolidated financial statements include the accounts of Solitario and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. The consolidated financial statements are prepared in accordance with generally accepted accounting principles and are expressed in U.S. dollars. Revenue recognition Solitario has recorded revenue from the sale of exploration mineral properties and joint venture property payments. Solitario’s policy is to recognize revenue from the sale of its exploration mineral properties (those without reserves) on a property by property basis, computed as the cash received and / or collectable receivables less any capitalized cost. Payments received for the sale of exploration property interests that are less than the properties cost are recorded as a reduction of the related property's capitalized cost. In addition, Solitario’s policy is to recognize revenue on any receipts of joint venture property payments in excess of its capitalized costs on a property that Solitario may lease to another mining company. Solitario has recognized revenue during the three months ended March 31, 2019 of $408,000 related to the Royalty Sale, discussed above in accordance with Accounting Standards Codification (“ASC”) 606. In addition, Solitario recorded revenue during the second quarter of 2018 for the first time in more than five years of $502,000 from the sale of its Yanacocha exploration mineral property. Solitario expects any property sales in the future to also be on an infrequent basis. Prior to the sale of its Yanacocha exploration mineral property, the last proceeds from joint venture property payments was in 2015 and Solitario does not expect to record joint venture property payments on any of its currently held properties for the foreseeable future. Historically, Solitario’s revenues have been infrequent and significant individual transactions and have only been from sales to well known or vetted mining companies. Solitario has never had a return on any of its sales recorded as revenue in its history and does not anticipate it will recognize any estimated returns on its current or future recorded revenues. Use of estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Some of the more significant estimates included in the preparation of Solitario's financial statements pertain to: (i) Solitario’s carrying value of short-term investments; (ii) the recoverability of mineral properties related to its mineral exploration properties and their future exploration potential; (iii) the fair value of stock option grants to employees, to officers and directors and to others; (iv) the ability of Solitario to realize its deferred tax assets; and (v) Solitario's investment in marketable equity securities. In performing its activities, Solitario has incurred certain costs for mineral properties. The recovery of these costs is ultimately dependent upon the sale of mineral property interests or the development of economically recoverable ore reserves and the ability of Solitario to obtain the necessary permits and financing to successfully place the properties into production, and upon future profitable operations, none of which is assured. Cash equivalents Cash equivalents include investments in highly liquid money-market securities with original maturities of three months or less when purchased. As of March 31, 2019, $516,000 of Solitario’s cash and cash equivalents are held in brokerage accounts and foreign banks, which are not covered under the Federal Deposit Insurance Corporation (“FDIC”) rules for the United States. Short-term investments As of March 31, 2019, Solitario has $9,277,000 of its current assets in United States Treasury Securities (“USTS”) with maturities of 15 days to 20 months. The USTS are recorded at their fair value, based upon quoted market prices and are not covered under the FDIC insurance rules for United States deposits. Solitario’s USTS are highly liquid and may be sold in their entirety at any time at their quoted market price and are classified as a current asset. Mineral properties Solitario expenses all exploration costs incurred on its mineral properties prior to the establishment of proven and probable reserves through the completion of a feasibility study. Initial acquisition costs of its mineral properties are capitalized. Solitario regularly performs evaluations of its investment in mineral properties to assess the recoverability and/or the residual value of its investments in these assets. All long-lived assets are reviewed for impairment whenever events or circumstances change which indicate the carrying amount of an asset may not be recoverable, utilizing established guidelines based upon undiscounted future net cash flows from the asset or upon the determination that certain exploration properties do not have sufficient potential for economic mineralization. Leases Solitario accounts for its leases in accordance with ASC 842, Leases Derivative instruments Solitario accounts for its derivative instruments in accordance ASC 815. Solitario has entered into covered calls from time to time on its investment in Kinross Gold Corporation (“Kinross”) marketable equity securities. Solitario has not designated its covered calls as hedging instruments and any changes in the fair value of the covered calls are recognized in the statement of operations in the period of the change as gain or loss on derivative instruments. Fair value ASC 820 established a framework for measuring fair value of financial instruments and required disclosures about fair value measurements. For certain of Solitario's financial instruments, including cash and cash equivalents and accounts payable, the carrying amounts approximate fair value due to their short-term maturities. Solitario's short-term investments in USTS and CDs, its marketable equity securities and any covered call options against those marketable equity securities are carried at their estimated fair value based on quoted market prices. See Note 6, “Fair Value,” below. 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. Solitario records investments in marketable equity securities for investments in publicly traded marketable equity securities for which it does not exercise significant control and where Solitario has no representation on the board of directors of those companies and exercises no control over the management of those companies. The cost of marketable equity securities sold is determined by the specific identification method. Changes in fair value are recorded as unrealized gain or loss in the statement of operations. Foreign exchange The United States dollar is the functional currency for all of Solitario's foreign subsidiaries. Although Solitario's South American exploration activities during 2018 and the first quarter of 2019 have been conducted primarily in Peru, a portion of the payments under the land, leasehold and exploration agreements of Solitario are denominated in United States dollars. Realized foreign currency gains and losses are included in the results of operations in the period in which they occur. Income taxes Solitario accounts for income taxes in accordance with ASC 740, “Accounting for Income Taxes” (“ASC 740”). Under ASC 740, income taxes are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently due plus deferred taxes related to certain income and expenses recognized in different periods for financial and income tax reporting purposes. Deferred tax assets and liabilities represent the future tax return consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. Deferred taxes are also recognized for operating losses and tax credits that are available to offset future taxable income and income taxes, respectively. A valuation allowance is provided if it is more likely than not that some portion or all of the deferred tax assets will not be realized. Accounting for uncertainty in income taxes ASC 740 clarifies the accounting for uncertainty in income taxes recognized in a company's financial statements. ASC 740 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. ASC 740 provides that a company's tax position will be considered settled if the taxing authority has completed its examination, the company does not plan to appeal, and it is remote that the taxing authority would reexamine the tax position in the future. Earnings per share The calculation of basic and diluted earnings (loss) per share is based on the weighted average number of shares of common stock outstanding during the three months ended March 31, 2019 and 2018. Potentially dilutive shares related to outstanding common stock options of 4,373,000 and 2,082,428, respectively, for Solitario common shares for the three months ended March 31, 2019 and 2018 were excluded from the calculation of diluted earnings (loss) per share because the effects were anti-dilutive. Employee stock compensation and incentive plans Solitario classifies all of its stock options as equity options in accordance with the provisions of ASC 718, “Compensation – Stock Compensation.” Recent accounting pronouncements On January 1, 2019, Solitario adopted Accounting Standards Update No. 2016-02 Leases |
Mineral Property (Tables)
Mineral Property (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Extractive Industries [Abstract] | |
Investment in Mineral Property | (in thousands) March 31, December 31, 2019 2018 Exploration Lik project (Alaska – US) $15,611 $15,611 La Promesa (Peru) 6 6 Montana Royalty property (US) - 40 Total exploration mineral property $15,617 $15,657 |
Exploration Expense | (in thousands) Three months ended 2019 2018 Geologic and field expenses $147 $24 Administrative 16 156 Total exploration costs $ 163 $ 180 |
Marketable Equity Securities (T
Marketable Equity Securities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Equity Securities and Adjustments to Fair Value | (in thousands) March 31, 2019 December 31, 2018 Marketable equity securities at cost $1,714 $1,714 Cumulative unrealized loss on marketable equity securities (455) (129) Marketable equity securities at fair value $1,259 $1,585 |
Changes in Marketable Equity Securities | (in thousands) Three months ended 2019 2018 Gross (loss) recorded in the statement of operations $(326) $(441) Change in marketable equity securities at fair value $(326) $(441) |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Maturities of Lease Liability | (in thousands) 2019 $ 31 2020 42 2021 7 Total lease payments 80 Less amount of payments representing interest (4) Present value of lease payments $ 76 |
Supplemental Cash Flow for Operating Lease | (in thousands) Three months ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash outflows from WR Lease payments $ 7 Leased assets recorded in exchange for new operating lease liabilities $82 |
Other Assets (Tables)
Other Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | (in thousands) March 31, December 31 2019 2018 Furniture and fixtures, net of accumulated depreciation $ 34 $ 36 Lik project equipment, net of accumulated depreciation 65 70 Exploration bonds and other assets 4 4 Office lease asset 73 - Total other assets $176 $110 |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities Measured at Fair Value | (in thousands) Level 1 Level 2 Level 3 Total Assets Short-term investments $9,595 $ - $ $9,595 Marketable equity securities 1,259 - - 1,259 (in thousands) Level 1 Level 2 Level 3 Total Assets Short-term investments $10,223 $ - $ - $10,223 Marketable equity securities $ 1,585 $ - $ - $ 1,585 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Shareholders' Equity | (in thousands, except Accumulated Share amounts) Common Common Additional Other Total Stock Stock Paid-in Accumulated Comprehensive Shareholders’ Shares Amount Capital Deficit Income Equity Balance at December 31, 2017 58,434,566 584 $69,312 $(40,343) $ 576 $30,129 Cumulative-effect adjustment change in accounting principle - - - 576 (576) - Adjusted balance January 1, 2018 58,434,566 584 69,312 (39,767) - 30,129 Stock option expense - - 10 - - 10 Purchase of shares for cancellation (52,614) - (26) - - (26) Net loss - - - (1,004) - (1,004) Balance at March 31, 2018 58,381,952 $584 $69,296 $(40,771) $ - $29,109 (in thousands, except Share amounts) Common Common Additional Total Stock Stock Paid-in Accumulated Shareholders’ Shares Amount Capital Deficit Equity Balance at December 31, 2018 58,171,466 582 $69,873 $(43,365) $27,090 Stock option expense - - 88 - 88 Purchase of shares for cancellation (27,900) - (9) - (9) Net loss - - - (441) (441) Balance at March 31, 2019 58,143,566 $582 $69,952 $(43,806) $26,728 |
Business and Significant Acco_3
Business and Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | |||
Cash and cash equivalents are held in brokerage accounts and foreign bank | $ 516 | ||
Mineral property revenue recorded for royalty sale | 408 | ||
Fair value of cash received for royalty sale | 185 | ||
Fair value of note received for royalty sale less carrying value of $40,000 | 263 | ||
Fair value of note | 262 | ||
Charge to exchange gain/loss for royalty sale | 1 | ||
Assets in United States Treasuries | $ 9,277 | ||
Potentially dilutive shares related to outstanding common stock options | 4,373,000 | 2,082,428 | |
Operating lease asset Wheat Ridge office | $ 82 | ||
Operating lease liability Wheat Ridge office | $ 82 |
Mineral Property - Investment i
Mineral Property - Investment in Mineral Property (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Like project (Alaska) | ||
Exploration | $ 15,611 | $ 15,611 |
La Promesa (Peru) | ||
Exploration | 6 | 6 |
Montana Royalty property (US) | ||
Exploration | $ 40 |
Mineral Property - Exploration
Mineral Property - Exploration Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Extractive Industries [Abstract] | ||
Geologic and field expenses | $ 147 | $ 24 |
Administrative | 16 | 156 |
Total exploration costs | $ 163 | $ 180 |
Mineral Property (Details Narra
Mineral Property (Details Narrative) $ in Thousands | Jul. 12, 2017USD ($) |
Extractive Industries [Abstract] | |
LIK asset retirement obligation | $ 125,000 |
Marketable Equity Securities -
Marketable Equity Securities - Marketable Equity Securities and Adjustments to Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Investments, Debt and Equity Securities [Abstract] | ||
Marketable equity securities at cost | $ 1,714 | $ 1,714 |
Cumulative unrealized loss on marketable equity securities | (455) | (129) |
Marketable equity securities at fair value | $ 1,259 | $ 1,585 |
Marketable Equity Securities _2
Marketable Equity Securities - Changes in Marketable Equity Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | ||
Gross (loss) recorded in the statement of operations | $ (326) | $ (441) |
Change in marketable equity securities at fair value | $ (326) | $ (441) |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liability (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Leases [Abstract] | |
Lease Maturities 2019 | $ 31 |
Lease Maturities 2020 | 42 |
Lease Maturities 2021 | 7 |
Total lease payments | 80 |
Less amount of payments representing interest | (4) |
Present value of lease payments | $ 76 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow for Operating Lease (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating cash outflows from WR Lease payments | $ 7 |
Leased assets recorded in exchange for new operating lease liabilities | $ 82 |
Leases (Details Narrative)
Leases (Details Narrative) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Non-cash lease expense | $ 10 |
Cash lease payments | 7 |
Imputed interest | $ 1 |
Other Assets - Other Assets (De
Other Assets - Other Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Furniture and fixtures, net of accumulated depreciation | $ 34 | $ 36 |
Lik project equipment, net of accumulated depreciation | 65 | 70 |
Exploration bonds and other assets | 4 | 4 |
Office lease asset | 73 | |
Total other assets | $ 176 | $ 110 |
Fair Value - Financial Assets a
Fair Value - Financial Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Marketable equity securities | $ 1,259 | $ 1,585 |
Level 1 | ||
Assets | ||
Short-term investments | 9,595 | 10,223 |
Marketable equity securities | 1,259 | 1,585 |
Level 2 | ||
Assets | ||
Short-term investments | ||
Marketable equity securities | ||
Level 3 | ||
Assets | ||
Short-term investments | ||
Marketable equity securities |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) $ in Thousands | 3 Months Ended |
Sep. 30, 2018USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Agreement to fund drilling program at Florida Canyon payable in three installments of $527,000, $527,000, and $526,000 | $ 1,580 |
Employee Stock Compensation P_2
Employee Stock Compensation Plans (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Jun. 08, 2013 | |
Share-based Payment Arrangement [Abstract] | ||||
Total shares available for awards in 2013 Plan, as amended | 5,750,000 | |||
Outstanding options exercisable with option prices between $0.28 and $0.77 per share | 4,373,000 | 5,223,160 | ||
Options granted at $0.28 per shareand $0.62 per share | 150,000 | 100,000 | ||
Grant date fair value options granted | $ 23 | $ 12 | ||
Options expired with exercise prices between $1.68 and $0.70 per share | 1,000,160 | |||
Stock option compensation expense recorded | $ 88 | $ 10 | ||
Unrecognized stock option compensation cost related to non-vested options | $ 572 |
Shareholders Equity (Details)
Shareholders Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Common Stock | ||
Beginning balance, value | $ 582 | $ 584 |
Beginning balance, shares | 58,171,466 | 58,434,566 |
Stock option expense | ||
Purchase of shares for cancellation, value | ||
Purchase of shares for cancellation, shares | (27,900) | (52,614) |
Net loss | ||
Ending balance, value | $ 582 | $ 584 |
Ending balance, shares | 58,143,566 | 58,381,952 |
Additional Paid-In Capital | ||
Beginning balance, value | $ 69,873 | $ 69,312 |
Beginning balance, shares | ||
Stock option expense | $ 88 | $ 10 |
Purchase of shares for cancellation, value | $ (9) | $ (26) |
Purchase of shares for cancellation, shares | ||
Net loss | ||
Ending balance, value | $ 69,952 | $ 69,296 |
Ending balance, shares | ||
Retained Earnings / Accumulated Deficit | ||
Beginning balance, value | $ (43,365) | $ (39,767) |
Beginning balance, shares | ||
Stock option expense | ||
Purchase of shares for cancellation, value | ||
Purchase of shares for cancellation, shares | ||
Net loss | $ (441) | $ (1,004) |
Ending balance, value | $ (43,806) | $ (40,771) |
Ending balance, shares | ||
Beginning balance, value | $ 27,090 | $ 30,129 |
Beginning balance, shares | ||
Stock option expense | $ 88 | $ 10 |
Purchase of shares for cancellation, value | $ (9) | $ (26) |
Purchase of shares for cancellation, shares | ||
Net loss | $ (441) | $ (1,004) |
Ending balance, value | $ 26,728 | $ 29,109 |
Ending balance, shares |
Shareholders' Equity (Details N
Shareholders' Equity (Details Narrative) - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 31, 2018 | Oct. 28, 2015 |
Equity [Abstract] | |||
Cumulative-effect adjustment for change in accounting principles | $ 576 | ||
Shares of outstanding common stock authorized for repurchase | 2,000,000 | ||
Total of shares repurchased | 958,800 | ||
Aggregate total repurchase price | $ 458 |