Derivative Financial Instruments
 9 Months Ended
Sep. 30, 2012
Derivative Financial Instruments [Abstract]  
Derivative Financial Instruments

4. Derivative Financial Instruments

 

Derivative financial instruments at September 30, 2012 and December 31, 2011 consisted of the following:

 

Derivative Type   Balance Sheet Classification   2012     2011
Derivative assets              
Gold puts   Prepaid expenses and other current assets   $ 10,571     $ -
Derivative liabilities                  
Gold calls   Derivative liabilities     227,282       -
Gold forwards   Derivative liabilities     715,536       -
Contingent dividend payment   Derivative liabilities     444,800       -
Contingent dividend payment   Derivative liability - contingent dividend payment     -       1,025,000
Total derivative liabilities       $ 1,387,618     $ 1,025,000

 

During the 9 months ended September 30, 2012 the Company recognized a loss of $161,929 on the gold puts, a loss of $102,591 on the gold calls, a loss of $715,536 on the gold forwards, and a gain of $580,200 on the contingent dividend payment. Each of these amounts was recorded within change in fair value of derivatives in the condensed consolidated statement of operations.