Quarterly report pursuant to Section 13 or 15(d)

Hedging Transactions (Tables)

v2.4.0.8
Hedging Transactions (Tables)
3 Months Ended
Sep. 30, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of market values of derivative instruments
The following table summarizes the results of our hedging activities as follows at September 30, 2014 and at June 30, 2014, showing the precious metal commodity inventory position, net of open sale and purchase commitments, which is subject to price risk:
in thousands
 
 
 
 
 

 
September 30, 2014
 
June 30, 2014
 
Inventory
 
$
159,240

 
$
175,554

 
Less unhedgable inventory:
 
 
 
 
 
Commemorative coin inventory, held at lower of cost or market
 
(816
)
 
(2,564
)
 
Premium on metals position
 
(2,778
)
 
(3,285
)
 
Inventory value not hedged
 
(3,594
)
 
(5,849
)
 
 
 
 
 
 
 
Subtotal
 
155,646

 
169,705

 
Commitments at market:
 
 

 
 

 
Open inventory purchase commitments
 
429,522

 
489,944

 
Open inventory sales commitments
 
(145,283
)
 
(190,108
)
 
Margin sale commitments
 
(10,610
)
 
(15,751
)
 
In-transit inventory no longer subject to market risk
 
(34,993
)
 
(4,522
)
 
Unhedgable premiums on open commitment positions
 
271

 
1,694

 
Inventory borrowed from suppliers
 
(11,998
)
 
(8,709
)
 
Product financing obligation
 
(20,613
)
 
(24,610
)
 
Advances on industrial metals
 
1,915

 
8,813

 
Inventory subject to price risk
 
363,857

 
426,456

 
Inventory subject to derivative financial instruments:
 
 
 
 
 
Precious metals forward contracts at market values
 
158,770

 
206,055

 
Precious metals futures contracts at market values
 
205,031

 
220,984

 
Total market value of derivative financial instruments
 
363,801

 
427,039

 
Net inventory subject to commodity price risk
 
$
56

 
$
(583
)
 
Schedule of outstanding commitments
As of September 30, 2014 and June 30, 2014, the Company had the following outstanding commitments and open forward and future contracts:
in thousands
 
 
 
 
 

 
September 30, 2014
 
June 30, 2014
 
Purchase commitments
 
$
429,522

 
$
489,944

 
Sales commitments
 
(145,283
)
 
(190,108
)
 
Margin sales commitments
 
(10,610
)
 
(15,751
)
 
Open forward contracts
 
158,770

 
206,055

 
Open futures contracts
 
205,031

 
220,984

 
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 September 30, 2014 and June 30, 2014.
 
 
September 30, 2014
 
June 30, 2014
 
 
 
 
 
in thousands
 
Gross Derivative
 
Amounts Netted
 
Cash Collateral Pledge
 
Net Derivative
 
Gross Derivative
 
Amounts Netted
 
Cash Collateral Pledge
 
Net Derivative
Nettable derivative receivables:
Open sale and purchase commitments
 
$
4,178

 
$
(1,550
)
 
$

 
$
2,628

 
$
26,282

 
$
(4,112
)
 
$

 
$
22,170

Future contracts
 
27,071

 

 

 
27,071

 

 

 

 

Forward contracts
 
16,510

 

 

 
16,510

 
14

 

 

 
14

 
 
$
47,759

 
$
(1,550
)
 
$

 
$
46,209

 
$
26,296

 
$
(4,112
)
 
$

 
$
22,184

Nettable derivative payables:
Open sale and purchase commitments
 
$
49,768

 
$
(629
)
 
$

 
$
49,139

 
$
1,022

 
$
(174
)
 
$

 
$
848

Margin accounts
 
10,610

 

 
(5,277
)
 
5,333

 
15,751

 

 
(6,768
)
 
8,983

Future contracts
 

 

 


 

 
(15,121
)
 

 
23,199

 
8,078

Forward contracts
 

 

 

 

 
14,873

 

 

 
14,873

 
 
$
60,378

 
$
(629
)
 
$
(5,277
)
 
$
54,472

 
$
16,525

 
$
(174
)
 
$
16,431

 
$
32,782