DISCONTINUED OPERATIONS

12 Months Ended

Dec. 31, 2019

NOTE 13 DISCONTINUED OPERATIONS

The details of our Net income (loss) from discontinued operations, net of tax are set forth below:


	Years Ended December 31,
	2019		2018		2017
Holt royalty obligation	$	(84)	$	57	$	(44)
Batu Hijau contingent consideration and other ⁽¹⁾		12		4		6
Net income (loss) from discontinued operations	$	(72)	$	61	$	(38)

⁽¹⁾See Note 19 for details on the Batu Hijau contingent consideration.

The Holt Royalty Obligation

Discontinued operations include a retained royalty obligation (“Holt”) to Holloway Mining Company. Holloway Mining Company, which owned the Holt-McDermott property, was sold to St. Andrew Goldfields Ltd. (“St. Andrew”) in 2006. St. Andrew was acquired by Kirkland Lake Gold Ltd. (formerly known as Kirkland Lake Gold Inc.) in January 2016. In 2009, the Superior Court issued a decision finding Newmont Canada Corporation (“Newmont Canada”) liable for a royalty on production from Holt, which Newmont Canada appealed. In May 2011, the Ontario Court of Appeal upheld the Superior Court ruling finding Newmont liable for the royalty obligation, which equals 0.013% of net smelter returns multiplied by the quarterly average gold price, minus a 0.013% of net smelter returns. There is no cap on the royalty and it will increase or decrease with changes in gold price, discount rate, and gold production scenarios. Refer to Note 18 for additional information on the Holt royalty.

At December 31, 2019 and 2018, the estimated fair value of the Holt royalty obligation was $257 and $161, respectively. Changes to the estimated fair value resulting from periodic revaluations are recorded to Net income (loss) from discontinued operations, net of tax. For the years ended 2019, 2018 and 2017, the Company recorded a gain (loss) of $(84), $57 and $(44), net of tax benefit (expense) of $22, $(15) and $24, respectively, related to the Holt royalty obligation.

Cash Flows

Net cash used in operating activities of discontinued operations for the year ended December 31, 2019, 2018 and 2017, includes $10, $10 and $12, respectively, related to the Holt royalty obligation, and $-, $-, and $3, respectively, related to closing costs for the sale of Batu Hijau.