Accounts Payable and Other Accrued Liabilities

9 Months Ended

Sep. 30, 2012

Accounts Payable and Other Accrued Liabilities

Accounts Payable and Other Accrued Liabilities

10.   Accounts Payable and Other Accrued Liabilities

The Company’s accounts payable and other accrued liabilities consist of the following:

	September 30,		December 31,
	2012		2011
	(in thousands)
Accounts payable and accruals	$	2,808	$	5,172
Accrued employee compensation and benefits	3,226		2,898
	$	6,034	$	8,070

September 30, 2012

Accounts payable and accruals at September 30, 2012 are primarily related to amounts due to contractors and suppliers in the amounts of $2.0 million, $0.7 million and $0.1 million related to the Company’s Velardeña Operations, corporate administrative activities and exploration, respectively.

Accrued employee compensation and benefits at September 30, 2012 consist of $0.2 million of accrued vacation payable and $3.0 million related to withholding taxes and benefits payable, of which $1.8 million is related to activities at the Velardeña Operations.

December 31, 2011

Accounts payable and accruals at December 31, 2011 are primarily related to amounts due to contractors and suppliers in the amounts of $3.0 million, $0.8 million, $0.6 million and $0.8 million related to the Company’s Velardeña Operations, the El Quevar project, exploration and corporate administrative activities, respectively.

Accrued employee compensation and benefits at December 31, 2011 consist of $0.3 million of accrued vacation payable and $2.6 million related to withholding taxes and benefits payable, of which $2.1 million is related to activities at the Velardeña Operations.