Inventories

9 Months Ended

Sep. 30, 2012

Inventories

Inventories

6.   Inventories

Inventories at the Velardeña Operations at September 30, 2012 and December 31, 2011 consist of the following:

	September 30,		December 31,
	2012		2011
	(in thousands)		(in thousands)
Metals inventory	$	3,392	$	4,250
In-process inventory	369		257
Material and supplies	1,409		805
	$	5,170	$	5,312

At September 30, 2012, the Company had written down its metals inventory to net realizable value including a charge to cost of metals sold of approximately $2.0 million and a charge to depreciation expense of approximately $0.6 million.

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