Significant Customers

12 Months Ended

Dec. 31, 2011

Significant Customers [Abstract]

SIGNIFICANT CUSTOMERS

NOTE 19 — SIGNIFICANT CUSTOMERS

The Company refines its precious metals doré and concentrates using a geographically diverse group of third party smelters and refiners, including clients located in Mexico, Switzerland, Australia, Germany, China, and the United States (Penoles, Valcambi, Nyrstar, Aurubis, China National Gold and Johnson Matthey).

The Company markets its doré to credit worthy bullion trading houses, market makers and members of the London Bullion Market Association, industrial companies and sound financial institutions. The refined metals are sold to end users for use in electronic circuitry, jewelry, silverware, and the pharmaceutical and technology industries. The Company currently has six trading counterparties (International Commodities, Mitsui, Mitsubishi, Standard Bank, Valcambi and Auramet) and the sales of metals to these companies amounted to approximately 82%, 83% and 83% of total metal sales in 2011, 2010 and 2009, respectively. Generally, the loss of a single bullion trading counterparty would not adversely affect the Company due to the liquidity of the markets and the availability of alternative trading counterparties.

Sales of silver and gold concentrates to third party smelters (Penoles, Nyrstar, Aurubis and China National Gold) amounted to approximately 18%, 17% and 17% of total metal sales for the years ended December 31, 2011, 2010 and 2009, respectively. The loss of any one smelting and refining client may have a material adverse effect if alternate smelters and refiners are not available. The Company believes there is sufficient global capacity available to address the loss of any one smelter.

The following table indicates customers that have 10% or more of total revenue (in thousands):

Customer	Year ended December 31, 2011		Year ended December 31, 2010		Year ended December 31, 2009		Segments reporting revenue
Valcambi	$	385.5	$	174.1	$	96.0	Palmarejo, San Bartolomé
Auramet		50.8		79.0		71.5	Palmarejo
Penoles		13.3		53.9		45.0	Martha
China Gold		108.9		23.6		—	Kensington
International Commodities		112.6		36.7		6.1	Palmarejo, San Bartolomé, Rochester
Mitsui		105.1		45.9		35.8	Palmarejo, San Bartolomé, Rochester