Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2012

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative instruments Settlement

As of December 31, 2012, 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	$	27,205	$	24,895	$	24,691	$	21,140
Average gold price in excess of minimum contractual deduction	502		498		494		490
Notional ounces	54,171		50,004		50,004		43,173
Mexican peso forward purchase contracts	$	26,100	$	—	$	—	$	—
Average rate (MXP/$)	$	13.11	$	—	$	—	$	—
Mexican peso notional amount	342,235		—		—		—
Silver concentrate sales agreements	$	12,736	$	—	$	—	$	—
Average silver price	$	31.04	$	—	$	—	$	—
Notional ounces	410,298		—		—		—
Gold concentrates sales agreements	$	20,498	$	—	$	—	$	—
Average gold price	$	1,714	$	—	$	—	$	—
Notional ounces	11,957		—		—		—
Gold put options purchased	$	1,800	$	720	$	—	$	—
Average gold strike price	$	928	$	979	$	1,010	$	—
Notional ounces	45,000		47,000		30,000		—
Gold call options sold	$	1,800	$	720	$	—	$	—
Average gold strike price	$	2,000	$	1,933	$	2,000	$	—
Notional ounces	20,000		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 December 31, 2012 and December 31, 2011 (in thousands):

	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
Forward foreign exchange contracts	$	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

	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 years ended December 31, 2012 and 2011 (in thousands):

		Years ended December 31,
Financial statement line	Derivative	2012			2011			2010
Sales of metal	Concentrate sales contracts	$	1,682		$	2,505		$	1,636
Production costs applicable to sales	Forward foreign exchange contracts	(1,621		)	383			1,638
Fair value adjustments, net	Gold lease facility	—			(132		)	2,885
Fair value adjustments, net	Forward foreign exchange contracts	3,264			(3,192		)	(1,330		)
Fair value adjustments, net	Forward gold contract	—			34			425
Fair value adjustments, net	Silver ounces receivable	213			(276		)	1,594
Fair value adjustments, net	Palmarejo gold royalty	(31,053		)	(40,046		)	(83,989		)
Fair value adjustments, net	Franco-Nevada warrant	—			—			3,451
Fair value adjustments, net	Put and call options	4,089			(8,438		)	(11,795		)
		$	(23,426	)	$	(49,162	)	$	(85,485	)