Derivative Instrument and Hedging Transactions (Tables)
|
6 Months Ended |
Dec. 31, 2015 |
|---|
| Derivative Instruments and Hedging Activities Disclosure [Abstract] |
|
| Offsetting Assets and Liabilities |
In the table below, the aggregate gross and net derivative receivables and payables balances are presented by contract type and type of hedge, as of December 31, 2015 and June 30, 2015.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2015 |
|
June 30, 2015 |
|
|
|
|
|
in thousands |
|
Gross Derivative |
|
Amounts Netted |
|
Cash Collateral Pledge |
|
Net Derivative |
|
Gross Derivative |
|
Amounts Netted |
|
Cash Collateral Pledge |
|
Net Derivative |
Nettable derivative assets: |
Open sale and purchase commitments |
|
$ |
3,736 |
|
|
$ |
(957 |
) |
|
$ |
— |
|
|
$ |
2,779 |
|
|
$ |
2,815 |
|
|
$ |
(1,093 |
) |
|
$ |
— |
|
|
$ |
1,722 |
|
Future contracts |
|
11,411 |
|
|
— |
|
|
— |
|
|
11,411 |
|
|
11,159 |
|
|
(5,796 |
) |
|
— |
|
|
5,363 |
|
Forward contracts |
|
2,933 |
|
|
— |
|
|
— |
|
|
2,933 |
|
|
4,279 |
|
|
— |
|
|
— |
|
|
4,279 |
|
|
|
$ |
18,080 |
|
|
$ |
(957 |
) |
|
$ |
— |
|
|
$ |
17,123 |
|
|
$ |
18,253 |
|
|
$ |
(6,889 |
) |
|
$ |
— |
|
|
$ |
11,364 |
|
Nettable derivative liabilities: |
Open sale and purchase commitments |
|
$ |
15,515 |
|
|
$ |
(1,914 |
) |
|
$ |
— |
|
|
$ |
13,601 |
|
|
$ |
11,723 |
|
|
$ |
(734 |
) |
|
$ |
— |
|
|
$ |
10,989 |
|
Margin accounts |
|
12,456 |
|
|
— |
|
|
(6,127 |
) |
|
6,329 |
|
|
12,430 |
|
|
— |
|
|
(5,522 |
) |
|
6,908 |
|
|
|
$ |
27,971 |
|
|
$ |
(1,914 |
) |
|
$ |
(6,127 |
) |
|
$ |
19,930 |
|
|
$ |
24,153 |
|
|
$ |
(734 |
) |
|
$ |
(5,522 |
) |
|
$ |
17,897 |
|
|
| Summary of net gains (losses) on derivative instruments |
Below, is a summary of the net losses on derivative instruments for the three and six months ended December 31, 2015 and 2014.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in thousands |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
December 31, 2015 |
|
December 31, 2014 |
|
December 31, 2015 |
|
December 31, 2014 |
|
Gain (loss) on derivative instruments: |
|
Unrealized gain (loss) on open future commodity and forward contracts and open sale and purchase commitments, net |
|
$ |
596 |
|
|
$ |
9,006 |
|
|
$ |
(3,220 |
) |
|
$ |
10,284 |
|
|
Realized loss on future commodity contracts, net |
|
(3,197 |
) |
|
(37,172 |
) |
|
(13,788 |
) |
|
(44,806 |
) |
|
Total |
|
$ |
(2,601 |
) |
|
$ |
(28,166 |
) |
|
$ |
(17,008 |
) |
|
$ |
(34,522 |
) |
|
|
| Schedule of market values of derivative instruments |
The following table summarizes the results of our hedging activities, which shows the precious metal commodity inventory position, net of open sale and purchase commitments, that is subject to price risk as of December 31, 2015 and at June 30, 2015.
|
|
|
|
|
|
|
|
|
|
|
in thousands |
|
|
|
|
|
|
|
December 31, 2015 |
|
June 30, 2015 |
|
Inventory |
|
$ |
239,779 |
|
|
$ |
191,501 |
|
|
Less unhedgable inventory: |
|
|
|
|
|
Commemorative coin inventory, held at lower of cost or market |
|
(76 |
) |
|
(1,518 |
) |
|
Premium on metals position |
|
(4,451 |
) |
|
(3,255 |
) |
|
Inventory value not hedged |
|
(4,527 |
) |
|
(4,773 |
) |
|
|
|
|
|
|
|
Subtotal |
|
235,252 |
|
|
186,728 |
|
|
Commitments at market: |
|
|
|
|
|
|
|
Open inventory purchase commitments |
|
353,421 |
|
|
444,023 |
|
|
Open inventory sales commitments |
|
(226,942 |
) |
|
(249,081 |
) |
|
Margin sale commitments |
|
(12,456 |
) |
|
(12,430 |
) |
|
In-transit inventory no longer subject to market risk |
|
(8,885 |
) |
|
(13,807 |
) |
|
Unhedgable premiums on open commitment positions |
|
2,192 |
|
|
528 |
|
|
Inventory borrowed from suppliers |
|
(4,234 |
) |
|
(9,500 |
) |
|
Product financing obligation |
|
(50,504 |
) |
|
(39,425 |
) |
|
Advances on industrial metals |
|
3,235 |
|
|
3,340 |
|
|
Inventory subject to price risk |
|
291,079 |
|
|
310,376 |
|
|
|
|
|
|
|
|
Inventory subject to derivative financial instruments: |
|
|
|
|
|
Precious metals forward contracts at market values |
|
124,497 |
|
|
202,323 |
|
|
Precious metals futures contracts at market values |
|
166,330 |
|
|
107,993 |
|
|
Total market value of derivative financial instruments |
|
290,827 |
|
|
310,316 |
|
|
|
|
|
|
|
|
Net inventory subject to commodity price risk |
|
$ |
252 |
|
|
$ |
60 |
|
|
|
| Schedule of outstanding commitments |
As of December 31, 2015 and June 30, 2015, the Company had the following outstanding commitments and open forward and future contracts:
|
|
|
|
|
|
|
|
|
|
|
in thousands |
|
|
|
|
|
|
|
December 31, 2015 |
|
June 30, 2015 |
|
Purchase commitments |
|
$ |
353,421 |
|
|
$ |
444,023 |
|
|
Sales commitments |
|
(226,942 |
) |
|
(249,081 |
) |
|
Margin sales commitments |
|
(12,456 |
) |
|
(12,430 |
) |
|
Open forward contracts |
|
124,497 |
|
|
202,323 |
|
|
Open futures contracts |
|
166,330 |
|
|
107,993 |
|
|
|