Derivative Instruments and Hedging Activities

3 Months Ended

Dec. 31, 2012

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

NOTE 14: DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

Our earnings and financial position are affected by changes in gold values. In fiscal year 2012, we began using derivative financial instruments in order to manage our commodity price risk associated with the forecasted sales of gold scrap. These derivatives are not designated as hedges, and according to FASB ASC 815-20-25, “Derivatives and Hedging – Recognition,” changes in their fair value are recorded directly in earnings. As of December 31, 2012 and as of September 30, 2012 , we had no balance outstanding recorded on our balance sheet. As of December 31, 2011, the notional amount of the gold collar recorded on our balance sheet was 19,000 ounces of gold.

The table below presents the fair value of the derivative financial instruments on the Condensed Consolidated Balance Sheet on December 31, 2012 and 2011 and September 30, 2012:

		Fair Value of Derivative Instruments
		December 31,				September 30,
Derivative Instrument	Balance Sheet Location	2012		2011		2012
		(in thousands)
Non-designated derivatives:
Gold Collar	Prepaid expenses and other assets	$	—	$	1,073	$	—

The table below presents the effect of our derivative financial instruments on the Condensed Consolidated Statements of Operations for three months ended December 31, 2012 and 2011:

		(Gains) Recognized in Income
		Three Months Ended December 31,
Derivative Instrument	Location of (Gain)	2012		2011
		(in thousands)
Non-designated derivatives:
Gold Collar	Other income	$	—	$	(1,073	)