Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative instruments, future settlement

At March 31, 2014, the Company had the following derivative instruments that settle in each of the years indicated (in thousands except average prices and notional ounces):

	2014			2015		2016		Thereafter
Palmarejo gold production royalty	$	21,708		$	24,764	$	14,860	$	—
Average gold price in excess of minimum contractual deduction	$	498		$	494	$	490	$	—
Notional ounces	43,602			50,153		30,348		—
Mexican peso put options purchased	$	35,000		$	—	$	—	$	—
Average rate (MXN/$)	14.98			—		—		—
Mexican peso notional amount	524,300			—		—		—
Mexican peso call options sold	$	35,000		$	—	$	—	$	—
Average rate (MXN/$)	12.56			—		—		—
Mexican peso notional amount	439,600			—		—		—
Silver concentrate sales agreements	$	3,041		$	—	$	—	$	—
Average silver price	$	20.47		$	—	$	—	$	—
Notional ounces	148,594			—		—		—
Gold concentrate sales agreements	$	24,204		$	—	$	—	$	—
Average gold price	$	1,310		$	—	$	—	$	—
Notional ounces	18,471			—		—		—
Gold put options purchased	$	60,000		$	—	$	—	$	—
Average gold strike price	$	1,200		$	—	$	—	$	—
Notional ounces	50,000			—		—		—
Silver put options purchased	$	45,000		$	—	$	—	$	—
Average silver strike price	$	18.00		$	—	$	—	$	—
Notional ounces	2,500,000			—		—		—
Gold put options sold	$	(52,500	)	$	—	$	—	$	—
Average gold strike price	$	1,050		$	—	$	—	$	—
Notional ounces	50,000			—		—		—
Silver put options sold	$	(40,000	)	$	—	$	—	$	—
Average silver strike price	$	16.00		$	—	$	—	$	—
Notional ounces	2,500,000			—		—		—

Fair value of the derivative instruments

The following summarizes the classification of the fair value of the derivative instruments (in thousands):

	March 31, 2014
	Prepaid expenses and other		Accrued liabilities and other		Current portion of royalty obligation		Non-current portion of royalty obligation
Foreign exchange contracts, peso	$	67	$	7	$	—	$	—
Palmarejo gold production royalty	—		—		20,747		23,610
Gold and silver put options	992		226		—		—
Concentrate sales contracts	533		335		—		—
	$	1,592	$	568	$	20,747	$	23,610

	December 31, 2013
	Prepaid expenses and other		Accrued liabilities and other		Current portion of royalty obligation		Non-current portion of royalty obligation
Foreign exchange contracts, peso	$	38	$	947	$	—	$	—
Palmarejo gold production royalty	—		—		17,650		22,688
Gold and silver put options, net	135		—		—		—
Concentrate sales contracts	11		693		—		—
	$	184	$	1,640	$	17,650	$	22,688

Gain losses on derivative instruments

The following represent mark-to-market gains (losses) on derivative instruments for the three months ended March 31, 2014, and 2013 (in thousands):

		Three months ended March 31,
Financial statement line	Derivative	2014			2013
Sales of metal	Concentrate sales contracts	$	879		$	(1,755	)
Costs applicable to sales	Foreign exchange contracts	(924		)	627
Fair value adjustments, net	Foreign exchange contracts (MXN)	968			738
Fair value adjustments, net	Foreign exchange contracts (CDN)	—			(1,598		)
Fair value adjustments, net	Palmarejo gold royalty	(10,237		)	14,429
Fair value adjustments, net	Put and call options	(1,494		)	4,228
		$	(10,808	)	$	16,669