Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative instruments, future settlement

At September 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	$	13,571		$	40,516		$	24,778	$	—
Average gold price in excess of minimum contractual deduction	$	814		$	808		$	810	$	—
Notional ounces	16,668			50,153			30,595		—
Mexican peso put options purchased	$	15,000		$	—		$	—	$	—
Average rate (MXN/$)	14.83			—			—		—
Mexican peso notional amount	222,450			—			—		—
Mexican peso call options sold	$	15,000		$	—		$	—	$	—
Average rate (MXN/$)	12.65			—			—		—
Mexican peso notional amount	189,750			—			—		—
Silver concentrate sales contracts	$	2,360		$	—		$	—	$	—
Average silver price	$	18.87		$	—		$	—	$	—
Notional ounces	125,078			—			—		—
Gold concentrate sales contracts	$	41,197		$	—		$	—	$	—
Average gold price	$	1,253		$	—		$	—	$	—
Notional ounces	32,879			—			—		—
Gold put options purchased	$	30,000		$	28,800		$	—	$	—
Average gold strike price	$	1,200		$	1,200		$	—	$	—
Notional ounces	25,000			24,000			—		—
Silver put options purchased	$	22,500		$	22,500		$	—	$	—
Average silver strike price	$	18.00		$	18.00		$	—	$	—
Notional ounces	1,250,000			1,250,000			—		—
Gold put options sold	$	(26,250	)	$	(25,200	)	$	—	$	—
Average gold strike price	$	1,050		$	1,050		$	—	$	—
Notional ounces	25,000			24,000			—		—
Silver put options sold	$	(20,000	)	$	(20,000	)	$	—	$	—
Average silver strike price	$	16.00		$	16.00		$	—	$	—
Notional ounces	1,250,000			1,250,000			—		—

Fair value of the derivative instruments

The following summarizes the classification of the fair value of the derivative instruments:

	September 30, 2014
In thousands	Prepaid expenses and other		Accrued liabilities and other		Current portion of royalty obligation		Non-current portion of royalty obligation
Foreign exchange contracts, peso	$	—	$	8	$	—	$	—
Palmarejo gold production royalty	—		—		16,451		13,810
Silver and gold options	4,939		1,331		—		—
Concentrate sales contracts	23		516		—		—
	$	4,962	$	1,855	$	16,451	$	13,810

	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 nine months ended September 30, 2014, and 2013 (in thousands):

		Three months ended September 30,						Nine months ended September 30,
Financial statement line	Derivative	2014			2013			2014			2013
Sales of metal	Concentrate sales contracts	$	(684	)	$	718		$	(188	)	$	(2,037	)
Costs applicable to sales	Foreign exchange contracts	—			(99		)	(924		)	732
Fair value adjustments, net	Foreign exchange contracts	(57		)	100			901			(1,422		)
Fair value adjustments, net	Palmarejo gold royalty	8,736			(15,279		)	(6,560		)	60,216
Fair value adjustments, net	Silver and gold options	3,081			(3,104		)	213			7,474
		$	11,076		$	(17,664	)	$	(6,558	)	$	64,963