Fair Value Measurements

9 Months Ended

Sep. 30, 2011

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

NOTE 3 – FAIR VALUE MEASUREMENTS

Accounting standards establish a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below:

Level 1	Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;
Level 2	Quoted market prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and

Level 3 Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).

The following table sets forth the Company’s financial assets and liabilities measured at fair value on a recurring basis (at least annually) by level within the fair value hierarchy. As required by accounting guidance, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement (in thousands):

	Fair Value at September 30, 2011
	Total		Level 1		Level 2		Level 3
Assets:
Cash equivalents	$	38,853	$	38,853	$	—	$	—
Short-term investments		1,160		1,160		—		—
Marketable equity securities		13,884		13,884		—		—
Restricted certificates of deposit		1,168		1,168		—		—
Put and call options		5,813		5,813		—		—
Silver ounces receivable from Mandalay		1,232		—		1,232		—
	$	62,110	$	60,878	$	1,232	$	—
Liabilities:
Royalty obligation embedded derivative	$	179,425	$	—	$	179,425	$	—
Put and call options		38,749		38,749		—		—
Other derivative instruments, net		6,445		—		6,445		—
	$	224,619	$	38,749	$	185,870	$	—

	Fair Value at December 31, 2010
	Total		Level 1		Level 2		Level 3
Assets:
Cash equivalents	$	11	$	11	$	—	$	—
Restricted certificates of deposit		2,965		2,965		—		—
Gold forward contract		425		425		—		—
Put and call options		5,403		5,403		—		—
Silver ounces receivable from Mandalay		1,594		—		1,594		—
Other derivative instruments, net		1,685		—		1,685		—
	$	12,083	$	8,804	$	3,279	$	—
Liabilities:
Gold lease facility	$	2,213	$	—	$	2,213	$	—
Royalty obligation embedded derivative		162,003		—		162,003		—
Put and call options		20,151		20,151		—		—
	$	184,367	$	20,151	$	164,216	$	—

The Company’s cash equivalents, which include money market funds, certificates of deposit and short-term investments, are valued at readily available market prices. These investments are classified within Level 1 of the fair value hierarchy.

The Company’s marketable equity securities are recorded at fair market value in the financial statements based on quoted market prices, which are accessible at the measurement date for identical assets. Such instruments are classified within Level 1 of the fair value hierarchy.

The Company’s derivative instruments related to gold forward contracts and put and call options are valued using quoted prices in active markets that are accessible at the measurement date for identical assets and liabilities. Such instruments are classified within Level 1 of the fair value hierarchy.

The Company’s derivative instruments related to the silver ounces receivable from Mandalay described in Note 4, Discontinued Operations, gold lease facility, royalty obligation embedded derivative, and other derivative instruments, net, which relate to the concentrate sales contracts and foreign exchange contracts, are valued using pricing models which require inputs that are derived from observable market data, including contractual terms, forward market prices, yield curves and credit spreads. The model inputs can generally be verified and do not involve significant management judgment. Such instruments are classified within Level 2 of the fair value hierarchy.

The Company had no Level 3 financial assets and liabilities as of September 30, 2011 or December 31, 2010.