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Derivative Instruments and Hedging Activities
 9 Months Ended
Jun. 30, 2012
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments and Hedging Activities
Derivative Instruments and Hedging Activities
Our earnings and financial position are affected by changes in gold values. In fiscal year 2012, we began using derivative financial instruments in order to manage our commodity price risk associated with the forecasted sales of gold scrap. These derivatives are not designated as hedges, and according to FASB ASC 815-20-25, “Derivatives and Hedging – Recognition,” changes in their fair value are recorded directly in earnings. As of June 30, 2012, we had no balance outstanding recorded on our balance sheet.
The table below presents the effect of our derivative financial instruments on the Condensed Consolidated Statements of Operations for three months and nine months ended June 30, 2012 and 2011:
 
 
 
 
(Gains) Losses Recognized in Income
  
 
 
Three Months Ended June 30,
 
Nine Months Ended June 30,
Derivative Instrument
Location of (Gain) or Loss
 
2012
 
2011
 
2012
 
2011
 
 
 
(In thousands)
Non-designated derivatives:
 
 
 
 
 
 
 
 
 
Gold Collar
Other (income) expense
 
$
—

 
$
—

 
$
(151
)
 
$
—