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

3 Months Ended

Mar. 31, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative instruments Settlement

As of March 31, 2013, 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	$	21,297	$	24,895	$	24,691	$	20,766
Average gold price in excess of minimum contractual deduction	$	502	$	498	$	494	$	490
Notional ounces	42,433		50,004		50,004		42,409
Mexican peso forward purchase contracts	$	29,400	$	—	$	—	$	—
Average rate (MXP/$)	$	12.91	$	—	$	—	$	—
Mexican peso notional amount	379,422		—		—		—
Canadian dollar forward purchase contracts	$	100,000	$	—	$	—	$	—
Average rate (CAD/$)	$	1.00	$	—	$	—	$	—
Canadian dollar notional amount	100,000		—		—		—
Silver concentrate sales agreements	$	4,395	$	—	$	—	$	—
Average silver price	$	29.72	$	—	$	—	$	—
Notional ounces	147,898		—		—		—
Gold concentrates sales agreements	$	25,683	$	—	$	—	$	—
Average gold price	$	1,637	$	—	$	—	$	—
Notional ounces	15,685		—		—		—
Gold put options purchased	$	1,260	$	720	$	—	$	—
Average gold strike price	$	931	$	979	$	1,010	$	—
Notional ounces	32,500		47,000		30,000		—
Gold call options sold	$	—	$	720	$	—	$	—
Average gold strike price	$	2,000	$	1,934	$	2,000	$	—
Notional ounces	15,000		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, 2013 and December 31, 2012 (in thousands):

	March 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
Forward foreign exchange contracts Peso	$	814	$	—	$	—	$	—	$	—
Forward foreign exchange contracts Canadian dollars	—		1,598		—		—		—
Palmarejo gold production royalty	—		—		—		37,279		84,285
Put and call options, net	—		1,551		2,981		—		—
Concentrate sales contracts	71		512		—		—		—
	$	885	$	3,661	$	2,981	$	37,279	$	84,285

	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 Peso	$	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

Gain losses on derivative instruments

The following represent mark-to-market gains (losses) on derivative instruments for the three months ended March 31, 2013 and 2012 (in thousands):

		Three months ended March 31,
Financial statement line	Derivative	2013			2012
Sales of metal	Concentrate sales contracts	$	(1,755	)	$	1,336
Production costs applicable to sales	Forward foreign exchange contracts	627			(783		)
Fair value adjustments, net	Forward foreign exchange contracts MXN Peso	738			2,690
Fair value adjustments, net	Forward foreign exchange contracts Canadian dollar	(1,598		)	—
Fair value adjustments, net	Silver ounces receivable	—			359
Fair value adjustments, net	Palmarejo gold royalty	14,429			(25,611		)
Fair value adjustments, net	Put and call options	4,228			(551		)
		$	16,669		$	(22,560	)