Derivative Instruments

6 Months Ended

Jun. 30, 2024

Derivative Instruments

Derivative Instruments

6. Derivative Instruments

Covered call options

From time-to-time Solitario has sold covered call options against its holdings of shares of common stock of Kinross Gold Corporation (“Kinross”) included in marketable equity securities. The business purpose of selling covered calls is to provide additional income on a limited portion of shares of Kinross that Solitario may sell in the near term, which is generally defined as less than one year, and any changes in the fair value of its covered calls are recognized in the statement of operations in the period of the change. At June 30, 2024, Solitario has a liability related to covered calls outstanding on its holdings of Kinross of $60,000. During the three and six months ended June 30, 2024, Solitario sold covered calls against its holdings of Kinross for cash proceeds of $39,000 and recorded a loss on derivative instruments related to those covered calls of $21,000. During the three and six months ended June 30, 2023, Solitario sold covered calls against its holdings of Kinross for cash proceeds of $31,000 and recorded a gain on derivative instruments related to those covered calls of $23,000.