Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative instruments, future settlement

At June 30, 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	$	27,334		$	46,078		$	27,741	$	—
Average gold price in excess of minimum contractual deduction	$	913		$	919		$	920	$	—
Notional ounces	29,920			50,153			30,168		—
Mexican peso put options purchased	$	23,000		$	—		$	—	$	—
Average rate (MXN/$)	14.97			—			—		—
Mexican peso notional amount	344,310			—			—		—
Mexican peso call options sold	$	23,000		$	—		$	—	$	—
Average rate (MXN/$)	12.60			—			—		—
Mexican peso notional amount	289,800			—			—		—
Silver concentrate sales contracts	$	3,253		$	—		$	—	$	—
Average silver price	$	19.99		$	—		$	—	$	—
Notional ounces	162,724			—			—		—
Gold concentrate sales contracts	$	14,865		$	—		$	—	$	—
Average gold price	$	1,286		$	—		$	—	$	—
Notional ounces	11,559			—			—		—
Gold put options purchased	$	60,000		$	28,800		$	—	$	—
Average gold strike price	$	1,200		$	1,200		$	—	$	—
Notional ounces	50,000			24,000			—		—
Silver put options purchased	$	45,000		$	22,500		$	—	$	—
Average silver strike price	$	18.00		$	18.00		$	—	$	—
Notional ounces	2,500,000			1,250,000			—		—
Gold put options sold	$	(52,500	)	$	(25,200	)	$	—	$	—
Average gold strike price	$	1,050		$	1,050		$	—	$	—
Notional ounces	50,000			24,000			—		—
Silver put options sold	$	(40,000	)	$	(20,000	)	$	—	$	—
Average silver strike price	$	16.00		$	16.00		$	—	$	—
Notional ounces	2,500,000			1,250,000			—		—

Fair value of the derivative instruments

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

	June 30, 2014
	Prepaid expenses and other		Accrued liabilities and other		Current portion of royalty obligation		Non-current portion of royalty obligation
Foreign exchange contracts, peso	$	49	$	—	$	—	$	—
Palmarejo gold production royalty	—		—		22,393		21,567
Silver and gold options	1,298		291		—		—
Concentrate sales contracts	192		1		—		—
	$	1,539	$	292	$	22,393	$	21,567

	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
Silver and gold options	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 and six months ended June 30, 2014, and 2013 (in thousands):

		Three months ended June 30,						Six months ended June 30,
Financial statement line	Derivative	2014			2013			2014			2013
Sales of metal	Concentrate sales contracts	$	7		$	(667	)	$	872		$	(2,422	)
Costs applicable to sales	Foreign exchange contracts	—			203			(924		)	830
Fair value adjustments, net	Foreign exchange contracts (MXN)	(10		)	(2,260		)	957			(1,522		)
Fair value adjustments, net	Foreign exchange contracts (CDN)	—			1,598			—			—
Fair value adjustments, net	Palmarejo gold royalty	(5,061		)	61,066			(15,296		)	75,495
Fair value adjustments, net	Silver and gold options	(1,374		)	6,350			(2,868		)	10,577
		$	(6,438	)	$	66,290		$	(17,259	)	$	82,958