Quarterly report pursuant to Section 13 or 15(d)

Derivative Instrument and Hedging Transactions (Tables)

v3.4.0.3
Derivative Instrument and Hedging Transactions (Tables)
 9 Months Ended
Mar. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Offsetting Assets
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 March 31, 2016 and June 30, 2015.
 
 
March 31, 2016
 
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
 
$
11,124

 
$
(1,290
)
 
$
—

 
$
9,834

 
$
2,815

 
$
(1,093
)
 
$
—

 
$
1,722

Future contracts
 
1,226

 
—

 
—

 
1,226

 
11,159

 
(5,796
)
 
—

 
5,363

Forward contracts
 
26

 
—

 
—

 
26

 
4,279

 
—

 
—

 
4,279

 
 
$
12,376

 
$
(1,290
)
 
$
—

 
$
11,086

 
$
18,253

 
$
(6,889
)
 
$
—

 
$
11,364

Nettable derivative liabilities:
Open sale and purchase commitments
 
$
1,500

 
$
(1,341
)
 
$
—

 
$
159

 
$
11,723

 
$
(734
)
 
$
—

 
$
10,989

Margin accounts
 
10,913

 
—

 
(4,125
)
 
6,788

 
12,430

 
—

 
(5,522
)
 
6,908

Future contracts
 
1,163

 
—

 
 
 
1,163

 
—

 
—

 
 
 
—

Forward contracts
 
2,963

 
—

 
—

 
2,963

 
—

 
—

 
—

 
—

 
 
$
16,539

 
$
(1,341
)
 
$
(4,125
)
 
$
11,073

 
$
24,153

 
$
(734
)
 
$
(5,522
)
 
$
17,897

Offsetting 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 March 31, 2016 and June 30, 2015.
 
 
March 31, 2016
 
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
 
$
11,124

 
$
(1,290
)
 
$
—

 
$
9,834

 
$
2,815

 
$
(1,093
)
 
$
—

 
$
1,722

Future contracts
 
1,226

 
—

 
—

 
1,226

 
11,159

 
(5,796
)
 
—

 
5,363

Forward contracts
 
26

 
—

 
—

 
26

 
4,279

 
—

 
—

 
4,279

 
 
$
12,376

 
$
(1,290
)
 
$
—

 
$
11,086

 
$
18,253

 
$
(6,889
)
 
$
—

 
$
11,364

Nettable derivative liabilities:
Open sale and purchase commitments
 
$
1,500

 
$
(1,341
)
 
$
—

 
$
159

 
$
11,723

 
$
(734
)
 
$
—

 
$
10,989

Margin accounts
 
10,913

 
—

 
(4,125
)
 
6,788

 
12,430

 
—

 
(5,522
)
 
6,908

Future contracts
 
1,163

 
—

 
 
 
1,163

 
—

 
—

 
 
 
—

Forward contracts
 
2,963

 
—

 
—

 
2,963

 
—

 
—

 
—

 
—

 
 
$
16,539

 
$
(1,341
)
 
$
(4,125
)
 
$
11,073

 
$
24,153

 
$
(734
)
 
$
(5,522
)
 
$
17,897

Summary of net gains (losses) on derivative instruments
Below, is a summary of the net gains (losses) on derivative instruments for the three and nine months ended March 31, 2016 and 2015.
in thousands
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
 
 
March 31, 2016
 
March 31, 2015
 
March 31, 2016
 
March 31, 2015
 
Gain (loss) on derivative instruments:
 
Unrealized loss on open future commodity and forward contracts and open sale and purchase commitments, net
 
$
(5,262
)
 
$
(12,866
)
 
$
(8,482
)
 
$
(2,582
)
 
Realized gain (loss) on future commodity contracts, net
 
7,992

 
2,557

 
(5,796
)
 
(42,249
)
 
Total
 
$
2,730

 
$
(10,309
)
 
$
(14,278
)
 
$
(44,831
)
 
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 March 31, 2016 and at June 30, 2015.
in thousands
 
 
 
 
 
 
 
March 31, 2016
 
June 30, 2015
 
Inventory
 
$
273,973

 
$
191,501

 
Less unhedgable inventory:
 
 
 
 
 
Commemorative coin inventory, held at lower of cost or market
 
(6
)
 
(1,518
)
 
Premium on metals position
 
(5,463
)
 
(3,255
)
 
Inventory value not hedged
 
(5,469
)
 
(4,773
)
 
 
 
 
 
 
 
Subtotal
 
268,504

 
186,728

 
Commitments at market:
 
 

 
 

 
Open inventory purchase commitments
 
436,000

 
444,023

 
Open inventory sales commitments
 
(248,658
)
 
(249,081
)
 
Margin sale commitments
 
(10,913
)
 
(12,430
)
 
In-transit inventory no longer subject to market risk
 
(7,813
)
 
(13,807
)
 
Unhedgable premiums on open commitment positions
 
1,555

 
528

 
Inventory borrowed from suppliers
 
(5,573
)
 
(9,500
)
 
Product financing arrangements
 
(93,168
)
 
(39,425
)
 
Advances on industrial metals
 
4,163

 
3,340

 
Inventory subject to price risk
 
344,097

 
310,376

 
 
 
 
 
 
 
Inventory subject to derivative financial instruments:
 
 
 
 
 
Precious metals forward contracts at market values
 
217,961

 
202,323

 
Precious metals futures contracts at market values
 
125,145

 
107,993

 
Total market value of derivative financial instruments
 
343,106

 
310,316

 
 
 
 
 
 
 
Net inventory subject to commodity price risk
 
$
991

 
$
60

 
Schedule of outstanding commitments
As of March 31, 2016 and June 30, 2015, the Company had the following outstanding commitments and open forward and future contracts:
in thousands
 
 
 
 
 
 
 
March 31, 2016
 
June 30, 2015
 
Purchase commitments
 
$
436,000

 
$
444,023

 
Sales commitments
 
(248,658
)
 
(249,081
)
 
Margin sales commitments
 
(10,913
)
 
(12,430
)
 
Open forward contracts
 
217,961

 
202,323

 
Open futures contracts
 
125,145

 
107,993