Derivative Financial Instruments |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Derivative Financial Instruments | Derivative Financial Instruments Derivative financial instruments consisted of the following:
Gold Call and Put Option and Forward Derivatives - During the six months ended June 30, 2015, the Company entered into separate gold forward and call and put option derivative contracts related to future gold sales with its primary customer. Premiums received at the inception of written gold call and put options are recorded as a liability. During the three and six month periods ended June 30, 2015, the Company recognized a loss of $38,025 and $8,575, respectively, on the change in fair value of the gold forward derivatives. During the three and six month periods ended June 30, 2015, the Company recognized a loss of $22,191 and $82,846, respectively, on the change in fair value of the call option derivatives. The recognized losses were included as a component of mining revenues as the contracts relate to gold sales. The gold forward and call and put option derivative contracts outstanding at June 30, 2015 covered a total of 9,675 gold ounces with an average price of $1,259 for calls and forwards and $1,103 for gold puts. Silver calls totaled 50,000 silver ounces with an average price of $18.20 per ounce. The outstanding gold forward and call and put option derivative contracts are expected to settle or expire within ten months. |
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