Fair Value Measurements

12 Months Ended

Dec. 31, 2019

27.	FAIR VALUE MEASUREMENTS

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy establishes three levels in which to classify the inputs of valuation techniques used to measure fair values.

Level 1 – quoted market prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 – inputs other than quoted market prices included in Level 1 that are observable for the asset or liability, either directly, such as prices, or indirectly (derived from prices).

Level 3 – inputs are unobservable (supported by little or no market activity) such as

non-corroborative

indicative prices for a particular instrument provided by a third party.

As at December 31, 2019, marketable securities and traded warrants are measured at fair value using Level 1 inputs and

non-traded

warrants and Collars are measured at fair value using Level 2 inputs. The fair value of the long-term receivables, Convertible Notes, Debenture, Revolving Credit Facility, and Standby Loan, for disclosure purposes, are determined using Level 2 inputs. The carrying values of cash and cash equivalents, accounts receivable, reclamation bond, and accounts payable and accrued liabilities approximate fair value due to their short terms to maturity.

The fair value of marketable securities is measured based on the quoted market price of the related common shares at each reporting date, and changes in fair value are recognized in net income (loss).

The fair value of the traded warrants is measured based on the quoted market price of the warrants at each reporting date. The fair value of the

non-traded

warrants is determined using an option pricing formula (note 14(b)). The fair value of Collars is measured based on forward foreign exchange rates.

The fair value of the long-term receivables, Convertible Notes, Debenture, Revolving Credit Facility, and Standby Loan for disclosure purposes is determined using discounted cash flows based on the expected amounts and timing of the cash flows discounted using a market rate of interest adjusted for appropriate credit risk.

There were no transfers between fair value levels during the year.

The following table provides the fair value of each classification of financial instrument as at December 31:


	2019		2018

Loans and receivables:
Cash and cash equivalents	$	67,716	$	60,822
Restricted cash		15,285		15,596
Receivable from Serabi		12,033		10,909
Long term receivables		11,986		7,629
Reclamation bonds and other receivables		577		767
Financial assets at FVTPL:
Marketable securities		988		1,782
Collars		1,640		-

Total financial assets	$	110,225	$	97,505

Financial liabilities at FVTPL:
Traded warrants	$	26,056	$	9,730
Non-traded warrants		30,090		9,131
Other:
Accounts payable and accrued liabilities		67,047		55,460
Convertible Notes		137,995		-
Revolving Credit Facility		120,225		84,844
Debenture		10,061		17,746
Sprott Facility		-		18,452
Aurizona Credit Facility		-		67,627
Standby Loan		13,252		12,000
Production-linked liability		-		5,024
Other liabilities		1,795		1,706

Total financial liabilities	$	406,521	$	281,720