Annual report pursuant to Section 13 and 15(d)

Derivative Instruments and Hedging Transactions (Tables)

v3.22.2.2
Derivative Instruments and Hedging Transactions (Tables)
12 Months Ended
Jun. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Summary of Aggregate Gross and Net Derivative Receivables and Payables Balances 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 June 30, 2022 and June 30, 2021.

 

in thousands

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2022

 

 

June 30, 2021

 

 

 

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

 

$

34,821

 

 

$

(7,398

)

 

$

 

 

$

27,423

 

 

$

56,923

 

 

$

(18,583

)

 

$

 

 

$

38,340

 

Future contracts

 

 

20,245

 

 

 

 

 

 

 

 

 

20,245

 

 

 

4,510

 

 

 

 

 

 

 

 

 

4,510

 

Forward contracts

 

 

44,075

 

 

 

 

 

 

 

 

 

44,075

 

 

 

1,686

 

 

 

 

 

 

 

 

 

1,686

 

 

 

$

99,141

 

 

$

(7,398

)

 

$

 

 

$

91,743

 

 

$

63,119

 

 

$

(18,583

)

 

$

 

 

$

44,536

 

Nettable derivative liabilities:

 

 

 

Open sale and purchase commitments

 

$

72,937

 

 

$

(2,373

)

 

$

 

 

$

70,564

 

 

$

1,410

 

 

$

(1,167

)

 

$

 

 

$

243

 

Margin accounts

 

 

26,984

 

 

 

 

 

 

(22,298

)

 

 

4,686

 

 

 

7,322

 

 

 

 

 

 

(4,516

)

 

 

2,806

 

Future contracts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

465

 

 

 

 

 

 

 

 

 

465

 

Forward contracts

 

 

530

 

 

 

 

 

 

 

 

 

530

 

 

 

4,025

 

 

 

 

 

 

 

 

 

4,025

 

 

 

$

100,451

 

 

$

(2,373

)

 

$

(22,298

)

 

$

75,780

 

 

$

13,222

 

 

$

(1,167

)

 

$

(4,516

)

 

$

7,539

 

Summary of Net Gains (Losses) on Derivative Instruments

Below is a summary of the net gains (losses) on derivative instruments for the years ended June 30, 2022 and 2021.

 

in thousands

 

 

 

 

 

 

Years Ended

 

 

June 30,
2022

 

 

June 30,
2021

 

Gains (losses) on derivative instruments:

 

 

Unrealized (losses) gains on open future commodity and forward contracts and open sale and purchase commitments, net

$

(18,799

)

 

$

8,874

 

Realized gains (losses) on future commodity contracts, net

 

66,624

 

 

 

(134,496

)

 

$

47,825

 

 

$

(125,622

)

Summary of Hedging Activities Shows Precious Metal Commodity Inventory Position Net of Open Sale and Purchase Commitments 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 June 30, 2022 and June 30, 2021.

 

in thousands

 

 

 

 

 

 

 

 

June 30,
2022

 

 

June 30,
2021

 

Inventories

 

$

741,018

 

 

$

458,019

 

Precious metals held under financing arrangements

 

 

79,766

 

 

 

154,742

 

 

 

 

820,784

 

 

 

612,761

 

Less unhedgeable inventories:

 

 

 

 

 

 

Commemorative coin inventory, held at lower of cost or net realizable value

 

 

(1,434

)

 

 

(406

)

Premium on metals position

 

 

(27,059

)

 

 

(11,017

)

Precious metal value not hedged

 

 

(28,493

)

 

 

(11,423

)

 

 

 

 

 

 

 

 

 

 

792,291

 

 

 

601,338

 

 

 

 

 

 

 

 

Commitments at market:

 

 

 

 

 

 

Open inventory purchase commitments

 

 

681,835

 

 

 

987,926

 

Open inventory sales commitments

 

 

(497,949

)

 

 

(590,156

)

Margin sale commitments

 

 

(26,984

)

 

 

(7,322

)

In-transit inventory no longer subject to market risk

 

 

(13,164

)

 

 

(16,707

)

Unhedgeable premiums on open commitment positions

 

 

12,933

 

 

 

8,638

 

Borrowed precious metals

 

 

(59,417

)

 

 

(91,866

)

Product financing arrangements

 

 

(282,671

)

 

 

(201,028

)

Advances on industrial metals

 

 

768

 

 

 

287

 

 

 

 

(184,649

)

 

 

89,772

 

 

 

 

 

 

 

 

Precious metal subject to price risk

 

 

607,642

 

 

 

691,110

 

 

 

 

 

 

 

 

Precious metal subject to derivative financial instruments:

 

 

 

 

 

 

Precious metals forward contracts at market values

 

 

278,326

 

 

 

175,352

 

Precious metals futures contracts at market values

 

 

326,713

 

 

 

514,240

 

Total market value of derivative financial instruments

 

 

605,039

 

 

 

689,592

 

 

 

 

 

 

 

 

Net precious metals subject to commodity price risk

 

$

2,603

 

 

$

1,518

 

Schedule of Outstanding Commitments and Open Forward and Future Contracts As of June 30, 2022 and June 30, 2021, the Company had the following outstanding commitments and open forward and future contracts:

 

in thousands

 

 

 

 

 

 

 

 

June 30,
2022

 

 

June 30,
2021

 

Purchase commitments

 

$

681,835

 

 

$

987,926

 

Sales commitments

 

$

(497,949

)

 

$

(590,156

)

Margin sales commitments

 

$

(26,984

)

 

$

(7,322

)

Open forward contracts

 

$

278,326

 

 

$

175,352

 

Open futures contracts

 

$

326,713

 

 

$

514,240

 

Schedule of Market Values of Denominated in Foreign Currencies Outstanding The market values (fair values) of the Company’s foreign exchange forward contracts and the net open sale and purchase commitment transactions, denominated in foreign currencies, outstanding are as follows:

 

in thousands

 

 

 

 

 

 

 

 

June 30,
2022

 

 

June 30,
2021

 

Foreign exchange forward contracts

 

$

9,738

 

 

$

6,541

 

Open sale and purchase commitment transactions, net

 

$

10,371

 

 

$

4,311