Derivative Financial Instruments and Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative instruments Settlement

As of September 30, 2013, the Company had the following derivative instruments that settle in each of the years indicated in the table (in thousands except average prices, ounces and notional data):

	2013		2014		2015		Thereafter
Palmarejo gold production royalty	$	8,633	$	24,895	$	24,691	$	19,236
Average gold price in excess of minimum contractual deduction	$	502	$	498	$	494	$	490
Notional ounces	17,201		50,004		50,004		39,285
Mexican peso forward purchase contracts	$	12,000	$	12,000	$	—	$	—
Average rate (MXP/$)	$	12.90	$	12.20	$	—	$	—
Mexican peso notional amount	154,816		146,460		—		—
Mexican peso put options purchased	$	—	$	24,000	$	—	$	—
Average strike price (MXP/$)	$	—	$	12.50	$	—	$	—
Mexico peso notional amount	—		300,000		—		—
Mexican peso call options sold	$	—	$	24,000	$	—	$	—
Average strike price (MXP/$)	$	—	$	15.06	$	—	$	—
Mexico peso notional amount	—		361,500		—		—
Silver concentrate sales agreements	$	2,326	$	—	$	—	$	—
Average silver price	$	22.82	$	—	$	—	$	—
Notional ounces	101,908		—		—		—
Gold concentrate sales agreements	$	30,123	$	—	$	—	$	—
Average gold price	$	1,147	$	—	$	—	$	—
Notional ounces	26,265		—		—		—
Gold put options purchased	$	382	$	—	$	—	$	—
Average gold strike price	$	1,200	$	—	$	—	$	—
Notional ounces	25,000		—		—		—
Silver put options purchased	$	186	$	—	$	—	$	—
Average silver strike price	$	17.00	$	—	$	—	$	—
Notional ounces	1,250,000		—		—		—

Fair value of the derivative instruments

The following summarizes the classification of the fair value of the derivative instruments as of September 30, 2013 and December 31, 2012 (in thousands):

	September 30, 2013
	Prepaid expenses and other		Accrued liabilities and other		Current portion of royalty obligation		Non-current portion of royalty obligation
Foreign exchange contracts Peso	$	9	$	1,355	$	—	$	—
Palmarejo gold production royalty	—		—		22,590		39,406
Gold and silver put options	160		—		—		—
Concentrate sales contracts	42		766		—		—
	$	211	$	2,121	$	22,590	$	39,406

	December 31, 2012
	Prepaid expenses and other		Accrued liabilities and other		Other long- term Liabilities		Current portion of royalty obligation		Non-current portion of royalty obligation
Foreign exchange contracts Peso	$	376	$	300	$	—	$	—	$	—
Palmarejo gold production royalty	—		—		—		41,146		103,952
Put and call options, net	—		2,025		7,274		—		—
Concentrate sales contracts	1,030		163		—		—		—
	$	1,406	$	2,488	$	7,274	$	41,146	$	103,952

Gain losses on derivative instruments

The following represent mark-to-market gains (losses) on derivative instruments for the three and nine months ended September 30, 2013 and 2012 (in thousands):

		Three months ended September 30,						Nine months ended September 30,
Financial statement line	Derivative	2013			2012			2013			2012
Sales of metal	Concentrate sales contracts	$	718		$	1,591		$	(2,037	)	$	2,050
Production costs applicable to sales	Forward foreign exchange contracts	(99		)	394			732			(1,540		)
Fair value adjustments, net	Foreign exchange contracts MXN Peso	100			621			(1,422		)	3,394
Fair value adjustments, net	Silver ounces receivable	—			280			—			302
Fair value adjustments, net	Palmarejo gold royalty	(15,279		)	(34,266		)	60,216			(45,771		)
Fair value adjustments, net	Put and call options	(3,104		)	(4,283		)	7,474			(2,647		)
		$	(17,664	)	$	(35,663	)	$	64,963		$	(44,212	)