ACCOUNTING FOR CASH FLOW HEDGES

12 Months Ended

Dec. 31, 2011

ACCOUNTING FOR CASH FLOW HEDGES [Text Block]

12. ACCOUNTING FOR CASH FLOW HEDGES

In accordance with the requisite disclosure provisions for derivatives and hedging activities, the following represents the results of the Company’s hedging activities for its copper price protection program and its interest rate swap contract for the years ended December 31, 2011 and 2010.

Copper Price Protection Program

		Year ended
		December 31, 2010
Effective Portion
Net loss deferred in AOCI	$	(666,137	)
Net loss recognized in copper sales	$	(1,886,237	)
Ineffective Portion
Unrealized loss on de-designation of copper hedges	$	(13,392,853	)

Interest Rate Swap Contract
		Year ended
		December 31, 2010
Effective Portion
Net gain deferred in AOCI	$	22,701
Loss recognized in interest expense	$	(201,493	)
Ineffective Portion
Unrealized loss on de-designation of cash flow hedge	$	(319,542	)