Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative instruments Settlement

At December 31, 2013, the Company had the following derivative instruments that settle in each of the years indicated (in thousands except average prices and notional ounces):

	2014		2015		2016		Thereafter
Palmarejo gold production royalty	$	29,831	$	24,764	$	15,141	$	—
Average gold price in excess of minimum contractual deduction	498		494		490		—
Notional ounces	59,856		50,153		30,922		—
Mexican peso forward purchase contracts	$	12,000	$	—	$	—	$	—
Average rate (MXN/$)	12.21		—		—		—
Mexican peso notional amount	146,460		—		—		—
Mexican peso put options purchased	$	45,000	$	—	$	—	$	—
Average rate (MXN/$)	12.60		—		—		—
Mexican peso notional amount	567,150		—		—		—
Mexican peso call options sold	$	45,000	$	—	$	—	$	—
Average rate (MXN/$)	14.80		—		—		—
Mexican peso notional amount	666,075		—		—		—
Silver concentrate sales agreements	$	3,645	$	—	$	—	$	—
Average silver price	$	20.98	$	—	$	—	$	—
Notional ounces	173,752		—		—		—
Gold concentrate sales agreements	$	38,760	$	—	$	—	$	—
Average gold price	$	1,259	$	—	$	—	$	—
Notional ounces	30,780		—		—		—
Gold put options purchased	$	274	$	—	$	—	$	—
Average gold strike price	$	1,150	$	—	$	—	$	—
Notional ounces	25,000		—		—		—
Silver put options purchased	$	238	$	—	$	—	$	—
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 (in thousands):

	December 31, 2013
	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	$	38	$	947	$	—	$	—	$	—
Palmarejo gold production royalty	—		—		—		17,650		22,688
Gold and silver put options	135		—		—		—		—
Concentrate sales contracts	11		693		—		—		—
	$	184	$	1,640	$	—	$	17,650	$	22,688

	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
Gold and silver put 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 years ended December 31, 2013, 2012, and 2011 (in thousands):

		Year ended December 31,
Financial statement line	Derivative	2013			2012			2011
Sales of metal	Concentrate sales contracts	$	(1,995	)	$	1,682		$	2,505
Production costs applicable to sales	Forward foreign exchange contracts	589			(1,621		)	383
Fair value adjustments, net	Gold lease facility	—			—			(132		)
Fair value adjustments, net	Forward foreign exchange contracts	(985		)	3,264			(3,192		)
Fair value adjustments, net	Forward gold contract	—			—			34
Fair value adjustments, net	Silver ounces receivable	—			213			(276		)
Fair value adjustments, net	Palmarejo gold royalty	76,200			(31,053		)	(40,046		)
Fair value adjustments, net	Put and call options	7,119			4,089			(8,438		)
		$	80,928		$	(23,426	)	$	(49,162	)