AVAILABLE FOR SALE SECURITIES

9 Months Ended

Mar. 31, 2013

AVAILABLE FOR SALE SECURITIES

AVAILABLE FOR SALE SECURITIES

4. AVAILABLE FOR SALE SECURITIES

The Company’s available for sale securities as of March 31, 2013 and June 30, 2012 consists of the following (amounts in thousands):

	As of March 31, 2013
			Unrealized
	Cost Basis		Gain		Loss			Fair Value
Non-current:
Seabridge Gold, Inc.	$	14,064	—		—			$	14,064
Other	203		—		(113		)	90
	$	14,267	$	—	$	(113	)	$	14,154

	As of June 30, 2012
			Unrealized
	Cost Basis		Gain		Loss			Fair Value
Non-current:
Seabridge Gold, Inc.	$	28,574	—		(13,716		)	$	14,858
Other	203		—		(46		)	$	157
	$	28,777	$	—	$	(13,762	)	$	15,015

The Company’s policy for determining whether declines in fair value of available-for-sale securities are other than temporary includes a quarterly analysis of the investments and a review by management of all investments for which the cost exceeds the fair value.  Any temporary declines in fair value are recorded as a charge to other comprehensive income.  This evaluation considers a number of factors including, but not limited to, the length of time and extent to which the fair value has been less than cost, the financial condition and near term prospects of the issuer, and management’s ability and intent to hold the securities until fair value recovers.  If such impairment is determined by the Company to be other-than-temporary, the investment’s cost basis is written down to fair value and recorded in net income during the period the Company determines such impairment to be other-than-temporary.  The new cost basis is not changed for subsequent recoveries in fair value.

The most significant available-for-sale security is the investment in Seabridge common stock, acquired in June 2011 and discussed in greater detail within our Fiscal 2012 10-K.  During quarter ended March 31, 2013, the Company corrected the original cost basis of the shares, which was overstated by $2.4 million.  Based on the Company’s quarterly analysis, including the severity of the market decline in Seabridge common stock during the quarter ended March 31, 2013, the Company determined that the impairment of its investment in Seabridge common stock is other-than-temporary as of March 31, 2013.  As a result of the impairment, the Company recognized a loss on available-for-sale securities of $12.1 million during the three months ended March 31, 2013.  There were no impairments recognized on our available-for-sale securities during our fiscal year ended June 30, 2012.  The Company will continue to evaluate its investment in Seabridge common stock considering additional facts and circumstances as they arise, including, but not limited to, the progress of development of Seabridge’s KSM project.