GOLD RESOURCE CORP Fair Value Disclosure
21. Fair Value Measurement
Fair value accounting establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below:
Level 1 | Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; |
Level 2 | Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and |
Level 3 | Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity.) |
As required by accounting guidance, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. These assets and liabilities are remeasured for each reporting period. The following tables set forth certain of the Company’s assets and liabilities measured at fair value by level within the fair value hierarchy as of December 31, 2024 and 2023:
| As of | As of |
| |||||
December 31, | December 31, | Input Hierarchy Level | ||||||
2024 |
| 2023 | ||||||
(in thousands) | ||||||||
Cash and cash equivalents | $ | 1,628 | $ | 6,254 | Level 1 | |||
Accounts receivable, net | $ | 2,184 | $ | 4,335 | Level 2 | |||
Investment in equity securities-Maritime | $ | - | $ | 1,596 | Level 1 | |||
Investment in equity securities-Green Light Metals | $ | 852 | $ | 3,698 | Level 3 | |||
The following methods and assumptions were used to estimate the fair value of each class of financial instrument:
Cash and cash equivalents: Cash and cash equivalents consist primarily of cash deposits and are valued at cost, which approximates fair value.
Accounts receivable, net: Accounts receivable, net include amounts due to the Company for deliveries of concentrates and doré sold to customers. Concentrate sales contracts provide for provisional pricing as specified in such contracts. These sales contain an embedded derivative related to the provisional pricing mechanism which is bifurcated and accounted for as a derivative. At the end of each reporting period, the Company records an adjustment to sales to reflect the mark-to-market of outstanding provisional invoices based on the forward price curve. Because these provisionally priced sales have not yet settled as of the reporting date, the mark-to-market adjustment related to these
invoices is included in accounts receivable as of each reporting date. At December 31, 2024 and 2023, the Company had an unrealized loss of $7 thousand and an unrealized gain of $0.3 million, respectively, included in its accounts receivable on the accompanying Consolidated Balance Sheets related to mark-to-market adjustments. Please see Item 8. Financial Statements —Note 16. Derivatives for additional information.
Investment in equity securities—Maritime: On September 22, 2022, the Company invested C$2.4 million (or $1.7 million) in the common shares of Maritime Resources Corp., ticker symbol MAE.V on TSX-V, in a private placement. On September 23, 2024, all the common shares of Maritime were sold in a private placement transaction for C$0.034 per share to a related party, Dundee Corporation, for total proceeds of C$1.6 million (or $1.2 million). As of December 31, 2023, the fair value of the investment was $1.6 million.
Investment in equity securities—Green Light Metals: Upon maturity on December 28, 2022, the Company received approximately 12.3 million common shares of Green Light Metals as a settlement for a promissory note receivable acquired with the Aquila acquisition. This represented approximately 28.5% ownership in Green Light Metals at the time. As of December 31, 2024 and 2023, the fair value of this equity investment was $0.9 and $3.7 million, respectively. The Company is using significant unobservable inputs to value this investment, including published and unpublished prices at which Green Light Metals is raising additional capital.
Gains and losses related to changes in the fair value of embedded derivates in accounts receivable were included in the Company’s Consolidated Statements of Operations as shown in the following:
For the year ended December 31, | Statements of Operations Classification | ||||||||
|
| 2024 |
| 2023 |
| ||||
Note | |||||||||
Realized and unrealized derivative (loss) gain, net | 16 | $ | 970 | $ | (28) | Sales, net | |||
Realized/Unrealized Derivatives, net
The following tables summarize the Company’s realized/unrealized derivatives, net (in thousands):
| Gold |
| Silver |
| Copper |
| Lead |
| Zinc |
| Total | |||||||
For the year ended December 31, 2024 | ||||||||||||||||||
Realized gain | $ | 463 | $ | 351 | $ | 83 | $ | 18 | $ | 316 | $ | 1,231 | ||||||
Unrealized (loss) gain | (46) | (47) | (29) | 8 | (147) | (261) | ||||||||||||
Total realized/unrealized derivatives, net | $ | 417 | $ | 304 | $ | 54 | $ | 26 | $ | 169 | $ | 970 | ||||||
| Gold |
| Silver |
| Copper |
| Lead |
| Zinc |
| Total | |||||||
For the year ended December 31, 2023 | ||||||||||||||||||
Realized gain (loss) | $ | 295 | $ | 334 | $ | 6 | $ | 174 | $ | (511) | $ | 298 | ||||||
Unrealized (loss) gain | (40) | (241) | 4 | (186) | 137 | (326) | ||||||||||||
Total realized/unrealized derivatives, net | $ | 255 | $ | 93 | $ | 10 | $ | (12) | $ | (374) | $ | (28) | ||||||
Want the next GOLD RESOURCE CORP fair value disclosure the moment it drops?
Set a Sentinel and we'll alert you the moment GOLD RESOURCE CORP's next filing hits EDGAR. No credit card, your email never gets sold.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Apr 8, 2025 | Showing above |
| 2019 | Mar 2, 2020 | |
| 2018 | Feb 26, 2019 | |
| 2017 | Mar 8, 2018 | |
| 2015 | Mar 9, 2016 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.