VISTA GOLD CORP Fair Value Disclosure
8. Fair Value Accounting
The following table sets forth the Company’s assets measured at fair value by level within the fair value hierarchy. As required by accounting guidance, assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.
Fair Value at December 31, 2021 | ||||||||||
| Total |
| Level 1 |
| Level 3 | |||||
Other investments | $ | — | $ | — | $ | — | ||||
Used mill equipment (non-recurring) | $ | — | $ | — | $ | — | ||||
Fair Value at December 31, 2020 | ||||||||||
| Total |
| Level 1 |
| Level 3 | |||||
Other investments | $ | 293 | $ | 293 | $ | — | ||||
Our marketable securities and investment Nusantara Resources shares were classified as Level 1 of the fair value hierarchy as they are valued at quoted market prices in an active market. Marketable securities are included in Other Investments on the Consolidated Balance Sheets for each period presented.
The used mill equipment was classified as Level 3 of the fair value hierarchy. The management estimate of fair value at December 31, 2021 was $nil using a market approach. See Note 5 regarding inputs used for the Level 3 valuation of the used mill equipment.
There were no material transfers between levels nor were there any changes in valuation methods in 2021.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2021 | Feb 24, 2022 | Showing above |
| 2020 | Feb 26, 2021 | |
| 2019 | Feb 27, 2020 | |
| 2018 | Feb 25, 2019 | |
| 2017 | Mar 6, 2018 | |
| 2016 | Feb 22, 2017 | |
| 2015 | Feb 26, 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.