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Derivative Financial Instruments | 6 Months Ended
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Jun. 30, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS Provisional Metal Sales The Company enters into sales contracts with third-party smelters, refiners and off-take customers which, in some cases, provide for a provisional payment based upon preliminary assays and quoted metal prices. The provisionally priced sales contracts contain an embedded derivative that is required to be separated from the host contract for accounting purposes. The host contract is the receivable recorded at the forward price at the time of sale. The embedded derivatives do not qualify for hedge accounting and are marked to market through earnings each period until final settlement. Interest Rate Swap The Company enters into interest rate swap contracts in which it receives variable-rate interest and pays fixed-rate interest. The Company uses these instruments to manage its exposure to changes in interest rates related to its RCF (see Note 8-- Debt) and does not designate the instruments as hedges from an accounting standpoint and does not apply hedge accounting. The notional amount is used to measure interest to be paid or received. During the second quarter, an interest rate swap derivative instrument, with a notional amount of $50.0 million, expired and was replaced with an instrument with a notional amount of $75.0 million, which became effective in June 2019 and covers a contractual term of six months and net settles monthly. At June 30, 2019, the Company had the following derivative instruments that settle as follows:
In thousands except average prices and notional ounces | 2019 |  | Thereafter
Provisional silver sales contracts | $ | 10,423 |  |  | $ | — |
Average silver price per ounce | $ | 15.22 |  |  | $ | — |
Notional ounces | 685,006 |  |  | — |
Provisional gold sales contracts | $ | 9,663 |  |  | $ | — |
Average gold price per ounce | $ | 1,302 |  |  | $ | — |
Notional ounces | 7,424 |  |  | — |
Provisional zinc sales contracts | $ | 16,448 |  |  | $ | — |
Average zinc price per pound | $ | 1.14 |  |  | $ | — |
Notional pounds | 14,401,624 |  |  | — |
Provisional lead sales contracts | $ | 7,964 |  |  | $ | — |
Average lead price per pound | $ | 0.89 |  |  | $ | — |
Notional pounds | 8,996,543 |  |  | — |
Fixed interest rate swap payable | $ | 967 |  |  | $ | — |
Fixed Interest rate | 2.51 | % |  | — |
Notional dollars | $ | 75,000 |  |  | $ | — |
Variable interest rate swap receivable | $ | 787 |  |  | $ | — |
Average variable interest rate | 2.49 | % |  | $ | — |
Notional dollars | $ | 75,000 |  |  | $ | — |
The following summarizes the classification of the fair value of the derivative instruments:
| June 30, 2019
In thousands | Prepaid expenses and other |  | Accrued liabilities and other
Provisional metal sales contracts | $ | 926 |  |  | $ | 2,480 |
Interest rate swaps | — |  |  | 180 |
| $ | 926 |  |  | $ | 2,660 |
| December 31, 2018
In thousands | Prepaid expenses and other |  | Accrued liabilities and other
Provisional metal sales contracts | $ | 784 |  |  | $ | 644 |
Zinc options | 113 |  |  | — |
Interest rate swaps | 17 |  |  | — |
| $ | 914 |  |  | $ | 644 |
The following represent mark-to-market gains (losses) on derivative instruments for the three and six months ended June 30, 2019 and 2018, respectively (in thousands):
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
Financial statement line | Derivative | 2019 |  | 2018 |  | 2019 |  | 2018
Revenue | Provisional metal sales contracts | $ | (1,944 | ) |  | $ | (273 | ) |  | $ | (1,694 | ) |  | $ | (20 | )
Fair value adjustments, net | Zinc options | — |  |  | 219 |  |  | — |  |  | 363 |
Fair value adjustments, net | Interest rate swaps | (132 | ) |  | (188 | ) |  | (188 | ) |  | (188 | )
|  | $ | (2,076 | ) |  | $ | (242 | ) |  | $ | (1,882 | ) |  | $ | 155 |
Credit Risk The credit risk exposure related to any derivative instrument is limited to the unrealized gains, if any, on outstanding contracts based on current market prices. To reduce counter-party credit exposure, the Company enters into contracts with institutions management deems credit-worthy and limits credit exposure to each institution. The Company does not anticipate non-performance by any of its counterparties.

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- References No definition available. + Details
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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 + Details
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