v3.26.1
Derivative Financial Instruments
 3 Months Ended
Mar. 31, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE FINANCIAL INSTRUMENTS DERIVATIVE FINANCIAL INSTRUMENTS & HEDGING ACTIVITIES
The Company is exposed to various market risks, including the effect of changes in metal prices, foreign currency exchange rates and interest rates, and uses derivatives to manage financial exposures that occur in the normal course of business. Derivative gains and losses are included in operating cash flows in the period in which they contractually settle. The Company does not hold or issue derivatives for trading or speculative purposes.
The Company may elect to designate certain derivatives as hedging instruments under U.S. GAAP. The Company formally documents all relationships between designated hedging instruments and hedged items as well as its risk management objectives and strategies for undertaking hedge transactions. This process includes linking all derivatives designated as hedges to either recognized assets or liabilities or forecasted transactions and assessing, both at inception and on an ongoing basis, the effectiveness of the hedging relationships.
Derivatives Not Designated as Hedging 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. Additionally, prior to completing the New Gold Transaction, New Gold had entered into gold and copper swap contracts to reduce exposure to gold and copper prices. The embedded derivatives do not qualify for hedge accounting and are marked to market through earnings each period until final settlement.
At March 31, 2026, the Company had the following derivative instruments that settle as follows:
In thousands except average prices and notional ounces20262027 and Thereafter
Provisional gold sales contracts$80,275 $— 
Average gold price per ounce$4,795 $— 
Notional ounces16,743 — 
Provisional copper sales contracts$59,992 — 
Average copper price per pound$5.58 — 
Notional pounds10,753 — 
Gold swap contracts$37,478 — 
Average gold price per ounce$4,964 — 
Notional ounces7,550 — 
Copper swap contracts$59,291 — 
Average copper price per pound$5.63 — 
Notional pounds10,527 — 
The following summarizes the classification of the fair value of the derivative instruments:
 March 31, 2026
In thousandsPrepaid expenses and otherAccrued liabilities and other
Provisional gold and copper sales contracts$1,751 $2,620 
Gold and copper swap contracts$2,667 $— 
 December 31, 2025
In thousandsPrepaid expenses and otherAccrued liabilities and other
Provisional metal sales contracts$1,103 $124 
The following represent mark-to-market gains (losses) on derivative instruments in the three months ended March 31, 2026 and 2025, respectively (in thousands):
 Three Months Ended March 31,
Financial statement lineDerivative20262025
RevenueProvisional metal sales gold contracts$(1,410)$207 
RevenueProvisional metal sales copper contracts897 $— 
RevenueGold swap contracts944 — 
RevenueCopper swap contracts165 — 
$596 $207 
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.