Investment in Associate

12 Months Ended

Dec. 31, 2020

Disclosure of investments accounted for using equity method

8.	INVESTMENT IN ASSOCIATE

Details of the Company’s investment in associate

s at December 31, 2020 and 2019 are as follows:


	Principal Activity		Principal place of business		% Ownership interest				Quoted fair value (2)				Carrying amount
Name of equity accounted for investee					2020		2019		2020		2019		2020		2019
Solaris (1)		Exploration		Ecuador		26.5		30.3	$	132,026	$	-	$	22,287	$	7,162

(1)

On June 30, 2019, the Company determined that Solaris was no longer a controlled subsidiary due to dilution of its interest to approximately 32% and the fact Solaris was self-sustaining for an extended period. On deconsolidation, the Company recorded its interest retained in Solaris at fair value.

(2)

The fair value of the Company’s interest in Solaris, which listed on the TSX Venture Exchange during 2020, was based on the quoted market price at December 31, 2020, which is a Level 1 input in terms of IFRS 13. A quoted market price was not available as at December 31, 2019, as Solaris was not a listed company.

For the purposes of applying the equity method of accounting, the consolidated financial statements of Solaris as at September 30, 2020 have been used and appropriate adjustments have been made for the effects of significant transactions between that date and December 31, 2020. The following table summarizes the change in the carrying amount of the Company’s investment in Solaris:


	2020			2019
Balance as at January 1	$	7,162		$	-
Acquisition of interest in Solaris		12,480			7,800
Dilution gain (loss)		8,033			243
Company’s share of net (loss) of Solaris		(5,388	)		(881	)
Balance as at December 31	$	22,287		$	7,162

Summarized financial information in respect of the Company’s associate as at and for the years ended December 31, 2020 and 2019, is set out below. The summarized financial information below represents amounts in the associate’s consolidated financial statements prepared in accordance with IFRS.


	2020		2019
Current assets	$	72,295	$	6,191
Non-current assets		20,652		24,391
Total assets		92,947		30,582
Current liabilities		3,141		456
Non-current liabilities		544		1,575
Total liabilities		3,685		2,031
Non-controlling interest		7,766		7,822
Net assets of associate attributable to shareholders		81,496		20,729
Equinox Gold’s share of net assets		21,585		6,287
Other equity adjustments		702		876
Carrying amount	$	22,287	$	7,162


	2020		2019
Revenue	$	-	$	-
Net loss		20,369		1,003
Net comprehensive loss	$	19,826	$	1,003