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Derivative Financial Instruments and Fair Value of Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2012
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative instruments Settlement
As of June 30, 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):
 
Fair value of the derivative instruments
 
June 30, 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
$
562

 
$
—

 
$
—

 
$
—

 
$
—

Forward foreign exchange contracts
167

 
581

 
—

 
—

 
—

Palmarejo gold production royalty
—

 
—

 
—

 
38,476

 
108,238

Put and call options, net
—

 
2,858

 
10,335

 
—

 
—

Concentrate sales contracts
40

 
417

 
—

 
—

 
—

 
$
769

 
$
3,856

 
$
10,335

 
$
38,476

 
$
108,238



The following summarizes the classification of the fair value of the derivative instruments as of June 30, 2012 and December 31, 2011 (in thousands):
 
June 30, 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
$
562

 
$
—

 
$
—

 
$
—

 
$
—

Forward foreign exchange contracts
167

 
581

 
—

 
—

 
—

Palmarejo gold production royalty
—

 
—

 
—

 
38,476

 
108,238

Put and call options, net
—

 
2,858

 
10,335

 
—

 
—

Concentrate sales contracts
40

 
417

 
—

 
—

 
—

 
$
769

 
$
3,856

 
$
10,335

 
$
38,476

 
$
108,238
Gain losses on derivative instruments
The following represent mark-to-market gains (losses) on derivative instruments for the three months ended June 30, 2012 and 2011 (in thousands):
 
 
 
Three months ended
June 30,
 
Six months ended
June 30,
Financial statement line
Derivative
 
2012
 
2011
 
2012
 
2011
Sales of metal
Concentrate sales contracts
 
$
(877
)
 
$
(1,515
)
 
$
459

 
$
(2,873
)
Production costs applicable to sales
Forward foreign exchange contracts
 
(1,151
)
 
859

 
(1,934
)
 
1,111

Fair value adjustments, net
Gold lease facility
 
—

 
—

 
—

 
(132
)
Fair value adjustments, net
Forward foreign exchange contracts
 
83

 
(707
)
 
2,773

 
298

Fair value adjustments, net
Forward gold contract
 
—

 
—

 
—

 
35

Fair value adjustments, net
Silver ounces receivable
 
(337
)
 
(368
)
 
22

 
464

Fair value adjustments, net
Palmarejo gold royalty
 
14,106

 
(13,731
)
 
(11,505
)
 
(20,041
)
Fair value adjustments, net
Put and call options
 
2,187

 
2,374

 
1,636

 
1,676

 
 
 
$
14,011

 
$
(13,088
)
 
$
(8,549
)
 
$
(19,462
)