SOLITARIO RESOURCES CORP. Fair Value Disclosure
8. Fair Value of Financial Instruments:
For certain of Solitario's financial instruments, including cash and cash equivalents, and short-term investments the carrying amounts approximate fair value due to their short maturities. Solitario's marketable equity securities, including its investment in shares of Kinross common stock, Vendetta common stock, and Vox Royalty common stock are carried at their estimated fair value based on publicly available quoted market prices.
Solitario applies ASC 820 that establishes a framework for measuring fair value and requires enhanced disclosures about fair value measurements within a hierarchy between Level 1: quoted market prices; Level 2 quoted market prices for similar assets and liabilities; and Level 3: unobservable inputs with little or no market data.
The determination of where assets and liabilities fall within this hierarchy is based upon the lowest level of input that is significant to the fair value measurement. During the years ended December 31, 2024 and 2023, 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 December 31, 2024:
(in thousands) |
| Level 1 |
|
| Level 2 |
|
| Level 3 |
|
| Total |
| ||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Short-term investments |
| $ | 4,523 |
|
| $ | - |
|
| $ | - |
|
| $ | 4,523 |
|
Marketable equity securities |
| $ | 1,322 |
|
| $ | - |
|
| $ | - |
|
| $ | 1,322 |
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kinross calls |
| $ | 67 |
|
| $ | - |
|
| $ | - |
|
| $ | 67 |
|
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, 2023:
(in thousands) |
| Level 1 |
|
| Level 2 |
|
| Level 3 |
|
| Total |
| ||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Short-term investments |
| $ | 8,436 |
|
| $ | - |
|
| $ | - |
|
| $ | 8,436 |
|
Marketable equity securities |
| $ | 1,032 |
|
| $ | - |
|
| $ | - |
|
| $ | 1,032 |
|
Items measured at fair value on a recurring basis:
Short-term investments: At December 31, 2024 and 2023 Solitario has $4,523,000 and $7,738,000, respectively, in a money market account included in short-term investments. In addition, at December 31, 2023, Solitario’s holdings include short-term investments of USTS recorded at their fair values of $698,000 based upon quoted market prices.
Marketable equity securities: At December 31, 2024 and 2023, the fair value of Solitario’s holdings in shares of Vendetta, Kinross, and Vox Royalty marketable equity securities are based upon quoted market prices.
During the year ended December 31, 2024 and 2023, Solitario did not change any of the valuation techniques used to measure its financial assets and liabilities at fair value.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Mar 12, 2025 | Showing above |
| 2015 | Mar 3, 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.