Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative instruments, future settlement

At September 30, 2019, the Company had the following derivative cash flow hedge instruments that settle as follows:

In thousands except average prices and notional ounces	2019		2020
Gold put options
Average gold strike price per ounce	$	1,405	$	1,408
Notional ounces	63,000		96,000
Gold call options
Average gold strike price per ounce	$	1,798	$	1,803
Notional ounces	63,000		96,000

At September 30, 2019, the Company had the following derivative instruments that settle as follows:

In thousands except average prices and notional ounces	2019			Thereafter
Provisional silver sales contracts	$	10,406		$	—
Average silver price per ounce	$	17.53		$	—
Notional ounces	593,523			—
Provisional gold sales contracts	$	23,032		$	—
Average gold price per ounce	$	1,472		$	—
Notional ounces	15,652			—
Provisional zinc sales contracts	$	14,451		$	—
Average zinc price per pound	$	1.07		$	—
Notional pounds	13,512,379			—
Provisional lead sales contracts	$	7,650		$	—
Average lead price per pound	$	0.93		$	—
Notional pounds	8,212,898			—
Fixed interest rate swap payable	$	240		$	—
Fixed Interest rate	2.51		%	—
Notional dollars	$	37,500		$	—
Variable interest rate swap receivable	$	185		$	—
Average variable interest rate	2.37		%	$	—
Notional dollars	$	37,500		$	—

Fair value of the derivative instruments

The following summarizes the classification of the fair value of the derivative instruments designated as cash flow hedges:

	September 30, 2019
In thousands	Prepaid expenses and other		Accrued liabilities and other
Gold zero cost collars	$	1,497	$	—

The following table sets forth the pre-tax gains (losses) on derivatives designated as cash flow hedges that have been included in AOCI and the consolidated statement of comprehensive income for the three and nine months ended September 30, 2019 and 2018.

	Three months ended September 30,				Nine months ended September 30,
In thousands	2019		2018		2019		2018
Gains (losses) recognized in OCI - effective portion:
Gold zero cost collars	$	1,497	$	—	$	1,497	$	—
Gains (losses) reclassified from AOCI into net income - effective portion:
Gold zero cost collars	$	—	$	—	$	—	$	—

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

	September 30, 2019
In thousands	Prepaid expenses and other		Accrued liabilities and other
Provisional metal sales contracts	$	785	$	2,107
Interest rate swaps	—		55
	$	785	$	2,162

	December 31, 2018
In thousands	Prepaid expenses and other		Accrued liabilities and other
Provisional metal sales contracts	$	784	$	644
Zinc options	113		—
Interest rate swaps	17		—
	$	914	$	644

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, 2019 and 2018, respectively (in thousands):

		Three months ended September 30,				Nine months ended September 30,
Financial statement line	Derivative	2019		2018		2019			2018
Revenue	Provisional metal sales contracts	$	233	$	34	$	(1,461	)	$	15
Fair value adjustments, net	Zinc options	—		225		—			588
Fair value adjustments, net	Interest rate swaps	15		206		(173		)	18
		$	248	$	465	$	(1,634	)	$	621