Hedging Transactions (Tables)
|
12 Months Ended |
Jun. 30, 2015 |
|---|
| Derivative Instruments and Hedging Activities Disclosure [Abstract] |
|
| Summary of net gains (losses) on derivative instruments |
Below, is a summary of the net losses on derivative instruments for the years ended June 30, 2015 and 2014.
|
|
|
|
|
|
|
|
|
|
|
in thousands |
|
|
|
|
|
Years Ended June 30, |
|
2015 |
|
2014 |
|
Gain (loss) on derivative instruments: |
|
Unrealized loss on open future commodity and forward contracts and open sale and purchase commitments, net |
|
$ |
(1,980 |
) |
|
$ |
(13,123 |
) |
|
Realized loss on future commodity contracts, net |
|
(50,772 |
) |
|
(9,968 |
) |
|
Total |
|
$ |
(52,752 |
) |
|
$ |
(23,091 |
) |
|
|
| Schedule of market values of derivative instruments |
The following table summarizes the results of our hedging activities as follows at June 30, 2015 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 |
|
|
|
|
|
June 30, |
|
2015 |
|
2014 |
|
Inventory |
|
$ |
191,501 |
|
|
$ |
175,554 |
|
|
Less unhedgable inventory: |
|
|
|
|
|
Commemorative coin inventory, held at lower of cost or market |
|
(1,518 |
) |
|
(2,564 |
) |
|
Premium on metals position |
|
(3,255 |
) |
|
(3,285 |
) |
|
Inventory value not hedged |
|
(4,773 |
) |
|
(5,849 |
) |
|
|
|
|
|
|
|
Subtotal |
|
186,728 |
|
|
169,705 |
|
|
Commitments at market: |
|
|
|
|
|
|
|
Open inventory purchase commitments |
|
444,023 |
|
|
489,944 |
|
|
Open inventory sales commitments |
|
(249,081 |
) |
|
(190,108 |
) |
|
Margin sale commitments |
|
(12,430 |
) |
|
(15,751 |
) |
|
In-transit inventory no longer subject to market risk |
|
(13,807 |
) |
|
(4,522 |
) |
|
Unhedgable premiums on open commitment positions |
|
528 |
|
|
1,694 |
|
|
Inventory borrowed from suppliers |
|
(9,500 |
) |
|
(8,709 |
) |
|
Product financing obligation |
|
(39,425 |
) |
|
(24,610 |
) |
|
Advances on industrial metals |
|
3,340 |
|
|
8,813 |
|
|
Inventory subject to price risk |
|
310,376 |
|
|
426,456 |
|
|
|
|
|
|
|
|
Inventory subject to derivative financial instruments: |
|
|
|
|
|
Precious metals forward contracts at market values |
|
202,323 |
|
|
206,055 |
|
|
Precious metals futures contracts at market values |
|
107,993 |
|
|
220,984 |
|
|
Total market value of derivative financial instruments |
|
310,316 |
|
|
427,039 |
|
|
|
|
|
|
|
|
Net inventory subject to commodity price risk |
|
$ |
60 |
|
|
$ |
(583 |
) |
|
|
| Schedule of outstanding commitments |
As of June 30, 2015 and June 30, 2014, the Company had the following outstanding commitments and open forward and future contracts:
|
|
|
|
|
|
|
|
|
|
|
in thousands |
|
|
|
|
|
|
|
June 30, 2015 |
|
June 30, 2014 |
|
Purchase commitments |
|
$ |
444,023 |
|
|
$ |
489,944 |
|
|
Sales commitments |
|
(249,081 |
) |
|
(190,108 |
) |
|
Margin sales commitments |
|
(12,430 |
) |
|
(15,751 |
) |
|
Open forward contracts |
|
202,323 |
|
|
206,055 |
|
|
Open futures contracts |
|
107,993 |
|
|
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 June 30, 2015 and June 30, 2014.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended June 30, |
|
2015 |
|
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 |
|
$ |
2,815 |
|
|
$ |
(1,093 |
) |
|
$ |
— |
|
|
$ |
1,722 |
|
|
$ |
26,282 |
|
|
$ |
(4,112 |
) |
|
$ |
— |
|
|
$ |
22,170 |
|
Future contracts |
|
11,159 |
|
|
(5,796 |
) |
|
— |
|
|
5,363 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Forward contracts |
|
4,279 |
|
|
— |
|
|
— |
|
|
4,279 |
|
|
14 |
|
|
— |
|
|
— |
|
|
14 |
|
|
|
$ |
18,253 |
|
|
$ |
(6,889 |
) |
|
$ |
— |
|
|
$ |
11,364 |
|
|
$ |
26,296 |
|
|
$ |
(4,112 |
) |
|
$ |
— |
|
|
$ |
22,184 |
|
Nettable derivative payables: |
Open sale and purchase commitments |
|
$ |
11,723 |
|
|
$ |
(734 |
) |
|
$ |
— |
|
|
$ |
10,989 |
|
|
$ |
1,022 |
|
|
$ |
(174 |
) |
|
$ |
— |
|
|
$ |
848 |
|
Margin accounts |
|
12,430 |
|
|
— |
|
|
(5,522 |
) |
|
6,908 |
|
|
15,751 |
|
|
— |
|
|
(6,768 |
) |
|
8,983 |
|
Future contracts |
|
— |
|
|
— |
|
|
|
|
|
— |
|
|
(15,121 |
) |
|
— |
|
|
23,199 |
|
|
8,078 |
|
Forward contracts |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
14,873 |
|
|
— |
|
|
— |
|
|
14,873 |
|
|
|
$ |
24,153 |
|
|
$ |
(734 |
) |
|
$ |
(5,522 |
) |
|
$ |
17,897 |
|
|
$ |
16,525 |
|
|
$ |
(174 |
) |
|
$ |
16,431 |
|
|
$ |
32,782 |
|
|