Inventories

3 Months Ended

Mar. 31, 2012

Inventories

Inventories

6.     Inventories

Inventories at the Velardeña Operations at March 31, 2012 and December 31, 2011 consist of the following:

	March 31,		December 31,
	2012		2011
	(in thousands)		(in thousands)
Metals inventory	$	4,033	$	4,250
In-process inventory	223		257
Material and supplies	1,804		805
	$	6,060	$	5,312

At March 31, 2012, the Company had written down its metals inventory to net realizable value including a charge to cost of metals sold of approximately $1.2 million and a charge to depreciation expense of approximately $0.4 million.

Material and supplies inventory consist primarily of operating supplies at the Velardeña Operations and are carried at the lower of cost or market.