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

6 Months Ended

Jun. 30, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative instruments Settlement

As of June 30, 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	$	14,750	$	24,895	$	24,691	$	20,069
Average gold price in excess of minimum contractual deduction	$	502	$	498	$	492	$	490
Notional ounces	29,389		50,004		50,004		40,985
Mexican peso forward purchase contracts	$	20,700	$	12,000	$	—	$	—
Average rate (MXP/$)	$	12.90	$	12.21	$	—	$	—
Mexican peso notional amount	267,119		146,460		—		—
Mexican peso put options purchased	$	—	$	6,000	$	—	$	—
Average strike price (MXP/$)	$	—	$	12.50	$	—	$	—
Mexico peso notional amount	—		75,000		—		—
Mexican peso call options sold	$	—	$	6,000	$	—	$	—
Average strike price (MXP/$)	$	—	$	15.50	$	—	$	—
Mexico peso notional amount	—		93,000		—		—
Silver concentrate sales agreements	$	7,249	$	—	$	—	$	—
Average silver price	$	23.92	$	—	$	—	$	—
Notional ounces	302,990		—		—		—
Gold concentrates sales agreements	$	22,252	$	—	$	—	$	—
Average gold price	$	1,427	$	—	$	—	$	—
Notional ounces	15,589		—		—		—
Gold put options purchased	$	720	$	720	$	—	$	—
Average gold strike price	$	936	$	979	$	1,010	$	—
Notional ounces	20,000		47,000		30,000		—
Gold call options sold	$	—	$	720	$	—	$	—
Average gold strike price	$	2,000	$	1,934	$	2,000	$	—
Notional ounces	10,000		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 June 30, 2013 and December 31, 2012 (in thousands):

	June 30, 2013
	Prepaid expenses and other		Other long-term assets		Accrued liabilities and other		Current portion of royalty obligation		Non-current portion of royalty obligation
Foreign exchange contracts Peso	$	12	$	—	$	1,457	$	—	$	—
Palmarejo gold production royalty	—		—		—		17,759		34,600
Put and call options, net	50		2,308		—		—		—
Concentrate sales contracts	20		—		1,128		—		—
	$	82	$	2,308	$	2,585	$	17,759	$	34,600

	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 June 30, 2013 and 2012 (in thousands):

		Three months ended  June 30,						Six months ended June 30,
Financial statement line	Derivative	2013			2012			2013			2012
Sales of metal	Concentrate sales contracts	$	(667	)	$	(877	)	$	(2,422	)	$	459
Production costs applicable to sales	Forward foreign exchange contracts	203			(1,151		)	830			(1,934		)
Fair value adjustments, net	Foreign exchange contracts MXN Peso	(2,260		)	83			(1,522		)	2,773
Fair value adjustments, net	Forward foreign exchange contracts Canadian dollar	1,598			—			—			—
Fair value adjustments, net	Silver ounces receivable	—			(337		)	—			22
Fair value adjustments, net	Palmarejo gold royalty	61,066			14,105			75,494			(11,505		)
Fair value adjustments, net	Put and call options	6,350			2,187			10,577			1,636
		$	66,290		$	14,010		$	82,957		$	(8,549	)