XML 45 R25.htm IDEA: XBRL DOCUMENT v2.4.0.8
Significant Customers
 9 Months Ended
Sep. 30, 2013
Significant Customers [Abstract]  
SIGNIFICANT CUSTOMERS
SIGNIFICANT CUSTOMERS
The Company markets its refined doré to credit worthy bullion trading houses, market makers and members of the London Bullion Market Association and sound financial institutions. The refined metals are ultimately sold to end users for use in electronic circuitry, jewelry, silverware, pharmaceutical products, and the technology industry. The Company currently has eight trading counterparties (International Commodities, Mitsui, Mitsubishi, Standard Bank, Valcambi, TD Bank Group, Johnson Matthey, and Auramet) and the sales of metals to these companies amounted to approximately 83% and 92% of total metal sales for the nine months ended September 30, 2013 and 2012, respectively. Generally, the loss of a single bullion trading counterparty would not adversely affect the Company due to the liquidity of the markets and the availability of alternative trading counterparties.
Sales of silver and gold concentrates to third parties (Nyrstar, Aurubis, Sumitomo, and China National Gold) amounted to approximately 17% and 8% of total metal sales for the nine months ended September 30, 2013, and 2012, respectively. The loss of any one smelting and refining client may have a material adverse effect if alternate smelters and refiners are not available. The Company believes there is sufficient global capacity available to address the loss of any one smelter.
The following table indicates customers that represent 10% or more of total sales of metal for the three months ended September 30, 2013 and 2012 (in millions):        
 
 
Three months ended September 30,
 
 
Customer
 
2013
 
2012
 
Segments reporting sales of metal
International Commodities
 
$
41.5

 
$
10.8

 
Palmarejo, Rochester
Mitsui
 
$
29.4

 
$
14.2

 
Palmarejo, Rochester
TD Bank Group
 
$
28.9

 
$
19.4

 
Palmarejo, Rochester
Auramet
 
$
28.5

 
$
32.0

 
Rochester, Kensington
Valcambi
 
$
22.5

 
$
112.7

 
Palmarejo, San Bartolomé
China National Gold
 
$
21.3

 
$
9.6

 
Kensington
The following table indicates customers that represent 10% or more of total sales of metal for the nine months ended September 30, 2013 and 2012 (in millions):    
 
 
Nine months ended September 30,
 
 
Customer
 
2013
 
2012
 
Segments reporting sales of metal
Auramet
 
$
97.4

 
$
65.5

 
Palmarejo, San Bartolomé, Kensington
International Commodities
 
$
82.0

 
$
34.7

 
Palmarejo, San Bartolomé, Rochester
TD Bank Group
 
$
78.1

 
$
44.6

 
Palmarejo, Rochester
Valcambi
 
$
61.9

 
$
368.9

 
Palmarejo, San Bartolomé