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

3 Months Ended

Mar. 31, 2012

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative instruments Settlement

As of March 31, 2012, the Company had the following derivative instruments that settle in each of the years indicated in the table (in thousands except average rates, ounces and per share data):

	2012		2013		2014		Thereafter
Palmarejo gold production royalty	$	20,784	$	25,097	$	24,895	$	48,337
Average gold price in excess of minimum contractual deduction	$	499	$	502	$	498	$	492
Notional ounces	41,670		50,004		50,004		98,296
Mexican peso forward purchase contracts	$	25,800	$	—	$	—	$	—
Average rate (MXP/$)	$	12.78	$	—	$	—	$	—
Mexican peso notional amount	329,603		—		—		—
Silver ounces receivable from Mandalay	$	1,152	$	—	$	—	$	—
Average silver forward price	$	18.43	$	—	$	—	$	—
Notional ounces	62,500		—		—		—
Silver concentrate sales agreements	$	10,689	$	—	$	—	$	—
Average silver price	$	31.71	$	—	$	—	$	—
Notional ounces	337,058		—		—		—
Gold concentrates sales agreements	$	5,500	$	—	$	—	$	—
Average gold price	$	1,729	$	—	$	—	$	—
Notional ounces	3,181		—		—		—
Gold put options purchased	$	2,160	$	1,800	$	720	$	—
Average gold strike price	$	923	$	928	$	979	$	1,010
Notional ounces	51,000		45,000		47,000		30,000
Gold call options sold	$	—	$	1,800	$	720	$	—
Average gold strike price	2,000		1,827		1,934		2,000
Notional ounces	14,000		45,000		47,000		30,000

Fair value of the derivative instruments

The following summarizes the classification of the fair value of the derivative instruments as of March 31, 2012 and December 31, 2011 (in thousands):

	March 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
Silver ounces receivable from Mandalay	$	899	$	—	$	—	$	—	$	—
Forward foreign exchange contracts	480		978		—		—		—
Palmarejo gold production royalty	—		—		—		40,909		130,888
Put and call options, net	—		3,501		14,183		—		—
Concentrate sales contracts	634		122		—		—		—
	$	2,013	$	4,601	$	14,183	$	40,909	$	130,888

	December 31, 2011
	Prepaid expenses and other		Accrued liabilities and other		Other long- term Liabilities		Current portion of royalty obligation		Non-current portion of royalty obligation
Silver ounces receivable from Mandalay	$	814	$	—	$	—	$	—	$	—
Forward foreign exchange contracts	—		3,188		—		—		—
Palmarejo gold production royalty	—		—		—		37,206		122,194
Put and call options, net	—		3,183		14,669		—		—
Concentrate sales contracts	—		825		—		—		—
	$	814	$	7,196	$	14,669	$	37,206	$	122,194

Gain losses on derivative instruments

The following represent mark-to-market gains (losses) on derivative instruments for the three months ended March 31, 2012 and 2011 (in thousands):

		Three months ended March 31,
Financial statement line	Derivative	2012			2011
Sales of metal	Concentrate sales contracts	$	1,336		$	(1,349	)
Production costs applicable to sales	Forward foreign exchange contracts	(783		)	252
Fair value adjustments, net	Gold lease facility	—			(132		)
Fair value adjustments, net	Forward foreign exchange contracts	2,690			1,005
Fair value adjustments, net	Forward gold contract	—			35
Fair value adjustments, net	Silver ounces receivable	359			831
Fair value adjustments, net	Palmarejo gold royalty	(25,611		)	(6,343		)
Fair value adjustments, net	Put and call options	(551		)	(698		)
		$	(22,560	)	$	(6,399	)