☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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Delaware | 77-0664171 | ||||
State or Other Jurisdiction of Incorporation or Organization | I.R.S. Employer | Identification No. | |||
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6500 Coeur d’Alene, Idaho | 83815-9408 | ||||
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Address of Principal Executive Offices | Zip Code | ||||
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Title of each class |
| Trading Symbol(s) | Name of each exchange on which registered | |
Common Stock, par value $0.25 per share |
| HL | New York Stock Exchange | |
Series B Cumulative Convertible Preferred Stock, par value $0.25 per share |
| HL-PB | New York Stock Exchange |
Yes ☒ No ☐
Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a
Large accelerated filer | ☒ | Accelerated filer | ☐ | |||
| ||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||
Emerging growth company | ☐ |
Class | Shares Outstanding | |
Common stock, par value $0.25 per share |
10 – Q
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Page | ||||
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5 | ||||
6 | ||||
7 | ||||
9 | ||||
23 | ||||
60 | ||||
61 | ||||
61 | ||||
61 | ||||
62 | ||||
62 | ||||
64 |
* | Items 2, 3 and 5 of Part II are omitted as they are not applicable. |
Three Months Ended | ||||||||
March 31, 2022 | March 31, 2021 | |||||||
Sales of products | $ | 186,499 | $ | 210,852 | ||||
Cost of sales and other direct production costs | 105,772 | 96,382 | ||||||
Depreciation, depletion and amortization | 35,298 | 47,069 | ||||||
Total cost of sales | 141,070 | 143,451 | ||||||
Gross profit | 45,429 | 67,401 | ||||||
Other operating expenses: | ||||||||
General and administrative | 8,294 | 8,007 | ||||||
Exploration and pre-development | 12,808 | 6,690 | ||||||
Care and maintenance | 6,205 | 4,318 | ||||||
Provision for closed operations and reclamation | 901 | 3,709 | ||||||
Other operating expense | 2,463 | 3,648 | ||||||
Total other operating expense | 30,671 | 26,372 | ||||||
Income from operations | 14,758 | 41,029 | ||||||
Other income (expense): | ||||||||
Interest expense | (10,406 | ) | (10,744 | ) | ||||
Fair value adjustments, net | 5,965 | (1,875 | ) | |||||
Net foreign exchange loss | (2,038 | ) | (2,064 | ) | ||||
Other non-operating income (expense) | 1,505 | (152 | ) | |||||
Total other expense | (4,974 | ) | (14,835 | ) | ||||
Income before income and mining taxes | 9,784 | 26,194 | ||||||
Income and mining tax provision | (5,631 | ) | (4,743 | ) | ||||
Net income | 4,153 | 21,451 | ||||||
Preferred stock dividends | (138 | ) | (138 | ) | ||||
Income applicable to common stockholders | $ | 4,015 | $ | 21,313 | ||||
Comprehensive income: | ||||||||
Net income | $ | 4,153 | $ | 21,451 | ||||
Change in fair value of derivative contracts designated as hedge transactions | (33,165 | ) | 1,832 | |||||
Comprehensive (loss) income | $ | (29,012 | ) | $ | 23,283 | |||
Basic income per common share after preferred dividends | $ | 0.01 | $ | 0.04 | ||||
Diluted income per common share after preferred dividends | $ | 0.01 | $ | 0.04 | ||||
Weighted average number of common shares outstanding - basic | 538,490 | 534,101 | ||||||
Weighted average number of common shares outstanding - diluted | 544,061 | 540,527 | ||||||
Cash dividends per common share | $ | 0.00625 | $ | 0.00875 |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, 2022 | September 30, 2021 | September 30, 2022 | September 30, 2021 | |||||||||||||
Sales | $ | 146,339 | $ | 193,560 | $ | 524,080 | $ | 622,395 | ||||||||
Cost of sales and other direct production costs | 104,900 | 112,542 | 326,579 | 318,917 | ||||||||||||
Depreciation, depletion and amortization | 32,992 | 45,790 | 106,362 | 138,918 | ||||||||||||
Total cost of sales | 137,892 | 158,332 | 432,941 | 457,835 | ||||||||||||
Gross profit | 8,447 | 35,228 | 91,139 | 164,560 | ||||||||||||
Other operating expenses: | ||||||||||||||||
General and administrative | 11,003 | 8,874 | 28,989 | 27,985 | ||||||||||||
Exploration and pre-development | 15,128 | 17,108 | 39,136 | 35,039 | ||||||||||||
Care and maintenance costs | 5,092 | 6,910 | 16,539 | 17,014 | ||||||||||||
Provision for closed operations and environmental matters | 1,781 | 7,564 | 4,154 | 12,297 | ||||||||||||
Other operating expense | 902 | 3,344 | 5,310 | 10,626 | ||||||||||||
Total other operating expenses | 33,906 | 43,800 | 94,128 | 102,961 | ||||||||||||
(Loss) income from operations | (25,459 | ) | (8,572 | ) | (2,989 | ) | 61,599 | |||||||||
Other income (expense): | ||||||||||||||||
Interest expense | (10,874 | ) | (10,469 | ) | (31,785 | ) | (31,484 | ) | ||||||||
Fair value adjustments, net | (4,240 | ) | 9,287 | (14,703 | ) | (10,651 | ) | |||||||||
Net foreign exchange gain | 5,667 | 3,995 | 8,111 | 24 | ||||||||||||
Other income (expense) | 1,853 | 247 | 4,828 | (192 | ) | |||||||||||
Total other (expense) income | (7,594 | ) | 3,060 | (33,549 | ) | (42,303 | ) | |||||||||
(Loss) income before income and mining taxes | (33,053 | ) | (5,512 | ) | (36,538 | ) | 19,296 | |||||||||
Income and mining tax benefit | 9,527 | 4,533 | 3,642 | 3,924 | ||||||||||||
Net (loss) income | (23,526 | ) | (979 | ) | (32,896 | ) | 23,220 | |||||||||
Preferred stock dividends | (138 | ) | (138 | ) | (414 | ) | (414 | ) | ||||||||
(Loss) income applicable to common stockholders | $ | (23,664 | ) | $ | (1,117 | ) | $ | (33,310 | ) | $ | 22,806 | |||||
Comprehensive income (loss): | ||||||||||||||||
Net (loss) income | $ | (23,526 | ) | $ | (979 | ) | $ | (32,896 | ) | $ | 23,220 | |||||
Change in fair value of derivative contracts designated as hedge transactions | (12,692 | ) | (6,267 | ) | 19,491 | (2,815 | ) | |||||||||
Comprehensive (loss) income | $ | (36,218 | ) | $ | (7,246 | ) | $ | (13,405 | ) | $ | 20,405 | |||||
Basic (loss) income per common share after preferred dividends | $ | (0.04 | ) | $ | — | $ | (0.06 | ) | $ | 0.04 | ||||||
Diluted (loss) income per common share after preferred dividends | $ | (0.04 | ) | $ | — | $ | (0.06 | ) | $ | 0.04 | ||||||
Weighted average number of common shares outstanding – basic | 554,531 | 536,966 | 544,000 | 535,542 | ||||||||||||
Weighted average number of common shares outstanding – diluted | 554,531 | 536,966 | 544,000 | 541,769 | ||||||||||||
Cash dividends declared per common share | $ | 0.00625 | $ | 0.01 | $ | 0.0125 | $ | 0.02 | ||||||||
Three Months Ended | ||||||||
March 31, 2022 | March 31, 2021 | |||||||
Operating activities: | ||||||||
Net income | $ | 4,153 | $ | 21,451 | ||||
Non-cash elements included in net income: | ||||||||
Depreciation, depletion and amortization | 35,456 | 46,957 | ||||||
Provision for reclamation and closure costs | 1,643 | 4,529 | ||||||
Stock-based compensation expense | 1,271 | 500 | ||||||
Deferred taxes | 2,234 | 141 | ||||||
Fair value adjustments, net | (2,245 | ) | (8,623 | ) | ||||
Foreign exchange loss | 2,280 | 1,755 | ||||||
Other non-cash items, net | 483 | 556 | ||||||
Change in assets and liabilities: | ||||||||
Accounts receivable | 2,779 | (2,664 | ) | |||||
Inventories | (5,081 | ) | 2,120 | |||||
Other current and non-current assets | 1,696 | 1,528 | ||||||
Accounts payable and accrued liabilities | (13,907 | ) | (24,545 | ) | ||||
Accrued payroll and related benefits | 6,909 | (7,995 | ) | |||||
Accrued taxes | 3,754 | 2,031 | ||||||
Accrued reclamation and closure costs and other non-current liabilities | (3,516 | ) | 195 | |||||
Cash provided by operating activities | 37,909 | 37,936 | ||||||
Investing activities: | ||||||||
Additions to properties, plants, equipment and mineral interests | (21,478 | ) | (21,413 | ) | ||||
Proceeds from sale of investments | 2,487 | 0 | ||||||
Proceeds from disposition of properties, plants and equipment | 617 | 19 | ||||||
Purchases of investments | (10,868 | ) | 0 | |||||
Net cash used in investing activities | (29,242 | ) | (21,394 | ) | ||||
Financing activities: | ||||||||
Acquisition of treasury shares | (1,921 | ) | 0 | |||||
Dividends paid to common and preferred stockholders | (3,509 | ) | (4,826 | ) | ||||
Credit facility fees paid | (54 | ) | (82 | ) | ||||
Repayments of finance leases | (1,695 | ) | (1,881 | ) | ||||
Net cash used in financing activities | (7,179 | ) | (6,789 | ) | ||||
Effect of exchange rates on cash | 519 | 167 | ||||||
Net increase in cash, cash equivalents and restricted cash and cash equivalents | 2,007 | 9,920 | ||||||
Cash, cash equivalents and restricted cash and cash equivalents at beginning of period | 211,063 | 130,883 | ||||||
Cash, cash equivalents and restricted cash and cash equivalents at end of period | $ | 213,070 | $ | 140,803 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Cash paid for interest | $ | 18,603 | $ | 18,406 | ||||
Cash paid for income and mining taxes | $ | 679 | $ | 1,980 | ||||
Significant non-cash investing and financing activities: | ||||||||
Addition of finance lease obligations and right-of-use assets | $ | 2,864 | $ | 3,120 | ||||
Accounts receivable for proceeds on exchange of investments | $ | 0 | $ | 1,832 |
Nine Months Ended | ||||||||
September 30, 2022 | September 30, 2021 | |||||||
Operating activities: | ||||||||
Net (loss) income | $ | (32,896 | ) | $ | 23,220 | |||
Non-cash elements included in net (loss) income: | ||||||||
Depreciation, depletion and amortization | 106,743 | 139,800 | ||||||
Write-down of inventory | 2,159 | 6,524 | ||||||
Fair value adjustments, net | 3,486 | (7,978 | ) | |||||
Provision for reclamation and closure costs | 4,789 | 7,821 | ||||||
Stock compensation | 4,298 | 4,774 | ||||||
Deferred income taxes | (17,828 | ) | (17,886 | ) | ||||
Foreign exchange (gain) loss | (8,353 | ) | 615 | |||||
Other non-cash items, net | 2,454 | 1,167 | ||||||
Change in assets and liabilities: | ||||||||
Accounts receivable | 34,788 | (3,798 | ) | |||||
Inventories | (19,472 | ) | 22,372 | |||||
Other current and non-current assets | (3,420 | ) | 1,650 | |||||
Accounts payable, accrued and other current liabilities | (21,708 | ) | (14,689 | ) | ||||
Accrued payroll and related benefits | 1,679 | (1,829 | ) | |||||
Accrued taxes | (2,652 | ) | 2,730 | |||||
Accrued reclamation and closure costs and other non-current liabilities | (297 | ) | 2,489 | |||||
Cash provided by operating activities | 53,770 | 166,982 | ||||||
Investing activities: | ||||||||
Additions to properties, plants, equipment and mineral interests | (93,237 | ) | (80,210 | ) | ||||
Change in restricted cash | 2,011 | — | ||||||
Proceeds from sale of investments | 9,375 | 1,811 | ||||||
Proceeds from disposition of properties, plants and equipment | 748 | 562 | ||||||
Purchases of investments | (30,540 | ) | — | |||||
Acquisitions, net | 8,952 | — | ||||||
Pre-acquisition advance to Alexco | (25,000 | ) | — | |||||
Purchase of carbon credits | — | (200 | ) | |||||
Net cash used in investing activities | (127,691 | ) | (78,037 | ) | ||||
Financing activities: | ||||||||
Proceeds from sale of common stock, net | 4,542 | — | ||||||
Acquisition of treasury stock | (3,677 | ) | (4,525 | ) | ||||
Dividends paid to common and preferred stockholders | (10,549 | ) | (17,169 | ) | ||||
Credit facility fees paid | (517 | ) | (108 | ) | ||||
Draw on revolving credit facility | 25,000 | — | ||||||
Repayments of finance leases | (5,222 | ) | (5,598 | ) | ||||
Net cash provided by (used in) financing activities | 9,577 | (27,400 | ) | |||||
Effect of exchange rates on cash | (804 | ) | (471 | ) | ||||
Net (decrease) increase in cash, cash equivalents and restricted cash | (65,148 | ) | 61,074 | |||||
Cash, cash equivalents and restricted cash at beginning of period | 211,063 | 130,883 | ||||||
Cash, cash equivalents and restricted cash at end of period | $ | 145,915 | $ | 191,957 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Cash paid for interest | $ | 37,179 | $ | 37,173 | ||||
Cash paid for income and mining taxes, net | $ | 13,061 | $ | 10,299 | ||||
Significant non-cash investing and financing activities: | ||||||||
Addition of finance lease obligations and right-of-use | $ | 9,692 | $ | 4,006 | ||||
Common stock issued to Alexco Resource Corp. shareholders | $ | 68,733 | $ | — | ||||
Common stock issued to settle acquired silver stream | $ | 135,000 | $ | — | ||||
Common stock issued to pension plans | $ | 5,570 | $ | 22,250 |
March 31, | December 31, 2021 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 212,029 | $ | 210,010 | ||||
Accounts receivable: | ||||||||
Trade | 33,324 | 36,437 | ||||||
Other, net | 8,586 | 8,149 | ||||||
Inventories: | ||||||||
Concentrates, doré, and stockpiled ore | 29,852 | 25,906 | ||||||
Materials and supplies | 43,238 | 41,859 | ||||||
Other current assets | 16,927 | 19,266 | ||||||
Total current assets | 343,956 | 341,627 | ||||||
Investments | 29,204 | 10,844 | ||||||
Restricted cash and investments | 1,041 | 1,053 | ||||||
Properties, plants, equipment and mineral interests, net | 2,298,858 | 2,310,810 | ||||||
Operating lease right-of-use assets | 12,342 | 12,435 | ||||||
Deferred taxes | 45,562 | 45,562 | ||||||
Other non-current assets | 7,936 | 6,477 | ||||||
Total assets | $ | 2,738,899 | $ | 2,728,808 | ||||
LIABILITIES | ||||||||
Current liabilities: | ||||||||
Accounts payable and accrued liabilities | $ | 73,786 | $ | 68,100 | ||||
Accrued payroll and related benefits | 34,864 | 28,714 | ||||||
Accrued taxes | 16,128 | 12,306 | ||||||
Finance and operating leases | 8,535 | 8,098 | ||||||
Accrued reclamation and closure costs | 10,594 | 9,259 | ||||||
Accrued interest | 5,232 | 14,454 | ||||||
Derivatives liabilities | 38,992 | 19,353 | ||||||
Other current liabilities | 109 | 99 | ||||||
Total current liabilities | 188,240 | 160,383 | ||||||
Finance and operating leases | 18,385 | 17,726 | ||||||
Accrued reclamation and closure costs | 103,612 | 103,972 | ||||||
Long-term debt | 508,852 | 508,095 | ||||||
Deferred tax liability | 140,810 | 149,706 | ||||||
Derivatives liabilities | 43,402 | 18,528 | ||||||
Other non-current liabilities | 7,055 | 9,611 | ||||||
Total liabilities | 1,010,356 | 968,021 | ||||||
Commitments and contingencies (Notes 4, 7, 8, and 10) | ||||||||
STOCKHOLDERS’ EQUITY | ||||||||
Preferred stock, 5,000,000 shares authorized: | ||||||||
Series B preferred stock, $0.25 par value, 157,816 shares issued and outstanding, liquidation preference — $7,891 | 39 | 39 | ||||||
Common stock, $0.25 par value, 750,000,000 authorized shares; issued March 31, 2022 — 546,635,233 shares and December 31, 2021 — 545,534,760 shares | 136,657 | 136,391 | ||||||
Capital surplus | 2,036,417 | 2,034,485 | ||||||
Accumulated deficit | (353,007 | ) | (353,651 | ) | ||||
Accumulated other comprehensive loss | (61,621 | ) | (28,456 | ) | ||||
Less treasury stock, at cost; March 31, 2022 — 7,728,800 shares and December 31, 2021 - 7,395,295 shares issued and held in treasury | (29,942 | ) | (28,021 | ) | ||||
Total stockholders’ equity | 1,728,543 | 1,760,787 | ||||||
Total liabilities and stockholders’ equity | $ | 2,738,899 | $ | 2,728,808 |
September 30, 2022 | December 31, 2021 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 144,669 | $ | 210,010 | ||||
Accounts receivable: | ||||||||
Trade | 12,477 | 36,437 | ||||||
Other, net | 12,846 | 8,149 | ||||||
Inventories: | ||||||||
Concentrates, doré, and stockpiled ore | 40,985 | 25,906 | ||||||
Materials and supplies | 51,020 | 41,859 | ||||||
Derivatives assets | 7,190 | 2,709 | ||||||
Other current assets | 14,733 | 16,557 | ||||||
Total current assets | 283,920 | 341,627 | ||||||
Investments | 13,299 | 10,844 | ||||||
Restricted cash | 1,246 | 1,053 | ||||||
Properties, plants, equipment and mineral interests, net | 2,553,974 | 2,310,810 | ||||||
Operating lease right-of-use | 11,632 | 12,435 | ||||||
Deferred income taxes | 45,562 | 45,562 | ||||||
Derivatives assets | 20,794 | 2,503 | ||||||
Other non-current assets | 4,202 | 3,974 | ||||||
Total assets | $ | 2,934,629 | $ | 2,728,808 | ||||
LIABILITIES | ||||||||
Current liabilities: | ||||||||
Accounts payable and accrued liabilities | $ | 87,850 | $ | 68,100 | ||||
Accrued payroll and related benefits | 26,385 | 28,714 | ||||||
Accrued taxes | 7,344 | 12,306 | ||||||
Finance and operating leases | 12,489 | 8,098 | ||||||
Accrued interest | 5,184 | 14,454 | ||||||
Derivatives liabilities | 5,774 | 19,353 | ||||||
Other current liabilities | 5,765 | 99 | ||||||
Accrued reclamation and closure costs | 10,594 | 9,259 | ||||||
Total current liabilities | 161,385 | 160,383 | ||||||
Finance and operating leases | 20,242 | 17,726 | ||||||
Accrued reclamation and closure costs | 105,717 | 103,972 | ||||||
Long-term debt | 530,745 | 508,095 | ||||||
Deferred tax liability | 154,225 | 149,706 | ||||||
Derivatives liabilities | 5,560 | 18,528 | ||||||
Other non-current liabilities | 1,987 | 9,611 | ||||||
Total liabilities | 979,861 | 968,021 | ||||||
Commitments and contingencies ( Notes 4 7 8, 10 | ||||||||
STOCKHOLDERS’ EQUITY | ||||||||
Preferred stock, 5,000,000 shares authorized: | ||||||||
Series B preferred stock, 25 cent par value, 157,776 shares issued and outstanding, liquidation preference – $7,891 | 39 | 39 | ||||||
Common stock, 25 cent par value, 750,000,000 authorized shares; issued September 30, 2022 – 603,702,910 shares and December 31, 2021 – 545,534,760 shares | 150,839 | 136,391 | ||||||
Capital surplus | 2,241,649 | 2,034,485 | ||||||
Accumulated deficit | (397,096 | ) | (353,651 | ) | ||||
Accumulated other comprehensive income (loss) | (8,965 | ) | (28,456 | ) | ||||
Less treasury stock, at cost; September 30, 2022 – 8,132,553 shares and December 31, 2021 – 7,395,295 shares issued and held in treasury | (31,698 | ) | (28,021 | ) | ||||
Total stockholders’ equity | 1,954,768 | 1,760,787 | ||||||
Total liabilities and stockholders’ equity | $ | 2,934,629 | $ | 2,728,808 | ||||
Three Months Ended March 31, 2022 | ||||||||||||||||||||||||||||
Series B Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss, net | Treasury Stock | Total | ||||||||||||||||||||||
Balances, January 1, 2022 | $ | 39 | $ | 136,391 | $ | 2,034,485 | $ | (353,651 | ) | $ | (28,456 | ) | $ | (28,021 | ) | $ | 1,760,787 | |||||||||||
Net income | 0 | 0 | 0 | 4,153 | 0 | 0 | 4,153 | |||||||||||||||||||||
Stock-based compensation expense | 0 | 0 | 1,271 | 0 | 0 | 0 | 1,271 | |||||||||||||||||||||
Incentive compensation units distributed (888,000 shares) | 0 | 222 | (222 | ) | 0 | 0 | (1,921 | ) | (1,921 | ) | ||||||||||||||||||
Common stock ($0.00625 per share) and Series B Preferred Stock ($0.875 per share) dividends declared | 0 | 0 | 0 | (3,509 | ) | 0 | 0 | (3,509 | ) | |||||||||||||||||||
Common stock issued for 401(k) match (180,000 shares) | 0 | 44 | 883 | 0 | 0 | 0 | 927 | |||||||||||||||||||||
Other comprehensive income | 0 | 0 | 0 | 0 | (33,165 | ) | 0 | (33,165 | ) | |||||||||||||||||||
Balances, March 31, 2022 | $ | 39 | $ | 136,657 | $ | 2,036,417 | $ | (353,007 | ) | $ | (61,621 | ) | $ | (29,942 | ) | $ | 1,728,543 |
Three Months Ended September 30, 2022 | ||||||||||||||||||||||||||||
Series B Preferred Stock | Common Stock | Capital Surplus | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss), net | Treasury Stock | Total | ||||||||||||||||||||||
Balances, July 1, 2022 | $ | 39 | $ | 137,241 | $ | 2,043,621 | $ | (370,048 | ) | $ | 3,727 | $ | (31,698 | ) | $ | 1,782,882 | ||||||||||||
Net loss | — | — | — | (23,526 | ) | — | — | (23,526 | ) | |||||||||||||||||||
Common stock issued to Alexco Resource Corp. shareholders (17,992,875 shares) | — | 4,498 | 64,235 | — | — | — | 68,733 | |||||||||||||||||||||
Common stock issued to settle the acquired silver stream (34,800,990 shares) | — | 8,700 | 126,300 | — | — | — | 135,000 | |||||||||||||||||||||
Common stock issued for 401(k) match (422,860 shares) | — | 106 | 1,472 | — | — | — | 1,578 | |||||||||||||||||||||
Common stock issued under ATM program, net (1,176,861 shares) | — | 294 | 4,248 | — | — | — | 4,542 | |||||||||||||||||||||
Common stock dividends declared (0.0625 cents per common share) | — | — | — | (3,384 | ) | — | — | (3,384 | ) | |||||||||||||||||||
Series B Preferred Stock dividends declared (87.5 cents per share) | — | — | — | (138 | ) | — | — | (138 | ) | |||||||||||||||||||
Restricted stock units granted | — | — | 1,773 | — | — | — | 1,773 | |||||||||||||||||||||
Other comprehensive loss | — | — | — | — | (12,692 | ) | — | (12,692 | ) | |||||||||||||||||||
Balances, September 30, 2022 | $ | 39 | $ | 150,839 | $ | 2,241,649 | $ | (397,096 | ) | $ | (8,965 | ) | $ | (31,698 | ) | $ | 1,954,768 | |||||||||||
Three Months Ended March 31, 2021 | ||||||||||||||||||||||||||||
Series B Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss, net | Treasury Stock | Total | ||||||||||||||||||||||
Balances, January 1, 2021 | $ | 39 | $ | 134,629 | $ | 2,003,576 | $ | (368,074 | ) | $ | (32,889 | ) | $ | (23,496 | ) | $ | 1,713,785 | |||||||||||
Net income | 0 | 0 | 0 | 21,451 | 0 | 0 | 21,451 | |||||||||||||||||||||
Stock-based compensation expense | 0 | 0 | 483 | 0 | 0 | 0 | 483 | |||||||||||||||||||||
Common stock ($0.00875 per share) and Series B Preferred Stock ($0.875 per share) dividends declared | 0 | 0 | 0 | (4,826 | ) | 0 | 0 | (4,826 | ) | |||||||||||||||||||
Common stock issued for 401(k) match (165,000 shares) | 0 | 42 | 1,088 | 0 | 0 | 0 | 1,130 | |||||||||||||||||||||
Shares issued to pension plans (3,500,000 shares) | 0 | 875 | 15,925 | 0 | 0 | 0 | 16,800 | |||||||||||||||||||||
Other comprehensive income | 0 | 0 | 0 | 0 | 1,832 | 0 | 1,832 | |||||||||||||||||||||
Balances, March 31, 2021 | $ | 39 | $ | 135,546 | $ | 2,021,072 | $ | (351,449 | ) | $ | (31,057 | ) | $ | (23,496 | ) | $ | 1,750,655 |
Three Months Ended September 3 0 , 2021 | ||||||||||||||||||||||||||||
Series B Preferred Stock | Common Stock | Capital Surplus | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss), net | Treasury Stock | Total | ||||||||||||||||||||||
Balances, July 1, 2021 | $ | 39 | $ | 136,065 | $ | 2,024,645 | $ | (354,866 | ) | $ | (29,437 | ) | $ | (28,021 | ) | $ | 1,748,425 | |||||||||||
Net loss | — | — | — | (979 | ) | — | — | (979 | ) | |||||||||||||||||||
Restricted stock units granted | — | — | 1,472 | — | — | — | 1,472 | |||||||||||||||||||||
Common stock dividends declared (1.125 cents per common share) | — | — | — | (6,040 | ) | — | — | (6,040 | ) | |||||||||||||||||||
Series B Preferred Stock dividends declared (87.5 cents per share) | — | — | — | (138 | ) | — | — | (138 | ) | |||||||||||||||||||
Common stock issued for 401(k) match (141,000 shares) | — | 35 | 1,017 | — | — | — | 1,052 | |||||||||||||||||||||
Common stock issued to pension plans (1,000,000 shares) | — | 250 | 5,200 | — | — | — | 5,450 | |||||||||||||||||||||
Other comprehensive loss | — | — | — | — | (6,267 | ) | — | (6,267 | ) | |||||||||||||||||||
Balances, September 30, 2021 | $ | 39 | $ | 136,350 | $ | 2,032,334 | $ | (362,023 | ) | $ | (35,704 | ) | $ | (28,021 | ) | $ | 1,742,975 | |||||||||||
Nine Months Ended September 30, 2022 | ||||||||||||||||||||||||||||
Series B Preferred Stock | Common Stock | Capital Surplus | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss), net | Treasury Stock | Total | ||||||||||||||||||||||
Balances, January 1, 2022 | $ | 39 | $ | 136,391 | $ | 2,034,485 | $ | (353,651 | ) | $ | (28,456 | ) | $ | (28,021 | ) | $ | 1,760,787 | |||||||||||
Net loss | — | — | — | (32,896 | ) | — | — | (32,896 | ) | |||||||||||||||||||
Restricted stock units granted | — | — | 3,881 | — | — | — | 3,881 | |||||||||||||||||||||
Restricted stock units and performance stock units distributed (1,789,042 shares) | — | 447 | (447 | ) | — | — | (3,677 | ) | (3,677 | ) | ||||||||||||||||||
Common stock issued for 401(k) match (321,110 shares) | — | 186 | 3,283 | — | — | — | 3,469 | |||||||||||||||||||||
Common stock issued to directors (98,310 shares) | — | 25 | 392 | — | — | — | 417 | |||||||||||||||||||||
Common stock issued to pension plans (1,190,000 shares) | — | 298 | 5,272 | — | — | — | 5,570 | |||||||||||||||||||||
Common stock issued to Alexco Resource Corp. shareholders (17,992,875 shares) | — | 4,498 | 64,235 | — | — | — | 68,733 | |||||||||||||||||||||
Common stock issued to settle the acquired silver stream (34,800,990) | — | 8,700 | 126,300 | — | — | — | 135,000 | |||||||||||||||||||||
Common stock issued under ATM program, net (1,176,861 shares) | —— — | 294 | 4,248 | — | — | — | 4,542 | |||||||||||||||||||||
Common stock dividends declared (1.25 cents per common share) | — | — | — | (10,135 | ) | — | — | (10,135 | ) | |||||||||||||||||||
Series B Preferred Stock dividends declared ($2.625 per share) | — | — | — | (414 | ) | — | — | (414 | ) | |||||||||||||||||||
Other comprehensive income | — | — | — | — | 19,491 | — | 19,491 | |||||||||||||||||||||
Balances, September 30, 2022 | $ | 39 | $ | 150,839 | $ | 2,241,649 | $ | (397,096 | ) | $ | (8,965 | ) | $ | (31,698 | ) | $ | 1,954,768 | |||||||||||
Nine Months Ended September 30, 2021 | ||||||||||||||||||||||||||||
Series B Preferred Stock | Common Stock | Capital Surplus | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss), net | Treasury Stock | Total | ||||||||||||||||||||||
Balances, January 1, 2021 | $ | 39 | $ | 134,629 | $ | 2,003,576 | $ | (368,074 | ) | $ | (32,889 | ) | $ | (23,496 | ) | $ | 1,713,785 | |||||||||||
Net income | — | — | — | 23,220 | — | — | 23,220 | |||||||||||||||||||||
Restricted stock units granted | — | — | 2,930 | — | — | — | 2,930 | |||||||||||||||||||||
Restricted stock units distributed (1,653,000 shares) | — | 413 | (413 | ) | — | — | (4,525 | ) | (4,525 | ) | ||||||||||||||||||
Common stock dividends declared (3.125 cents per common share) | — | — | — | (16,755 | ) | — | — | (16,755 | ) | |||||||||||||||||||
Series B Preferred Stock dividends declared ($2.625 per share) | — | — | — | (414 | ) | — | — | (414 | ) | |||||||||||||||||||
Common stock issued for 401(k) match (524,000 shares) | — | 131 | 3,324 | — | — | — | 3,455 | |||||||||||||||||||||
Common stock issued to pension plans (4,500,000 shares) | — | 1,125 | 21,125 | — | — | — | 22,250 | |||||||||||||||||||||
Common stock issued to directors (207,000 shares) | — | 52 | 1,792 | — | — | — | 1,844 | |||||||||||||||||||||
Other comprehensive loss | — | — | — | — | (2,815 | ) | — | (2,815 | ) | |||||||||||||||||||
Balances, September 30, 2021 | $ | 39 | $ | 136,350 | $ | 2,032,334 | $ | (362,023 | ) | $ | (35,704 | ) | $ | (28,021 | ) | $ | 1,742,975 | |||||||||||
Note 1. | Basis of Preparation of Financial Statements |
Note 1.Basis of Preparation of Financial Statements
Certain amounts
Note 2.Business Segments and Sales of Products
Note 2. | Business Segments and Sales of Products |
The following tables present information about our reportable segments for the three and nine months ended March 31,September 30, 2022 and 2021 (in thousands):
Three Months Ended | ||||||||
2022 | 2021 | |||||||
Sales of products: | ||||||||
Greens Creek | $ | 86,090 | $ | 98,409 | ||||
Lucky Friday | 38,040 | 29,122 | ||||||
Casa Berardi | 62,101 | 72,911 | ||||||
Nevada Operations | 268 | 10,237 | ||||||
Other | 0 | 173 | ||||||
$ | 186,499 | $ | 210,852 | |||||
Income (loss) from operations: | ||||||||
Greens Creek | $ | 34,586 | $ | 44,600 | ||||
Lucky Friday | 8,771 | 6,323 | ||||||
Casa Berardi | (2,699 | ) | 11,706 | |||||
Nevada Operations | (12,231 | ) | (3,140 | ) | ||||
Other | (13,669 | ) | (18,460 | ) | ||||
$ | 14,758 | $ | 41,029 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Net sales to unaffiliated customers: | ||||||||||||||||
Greens Creek | $ | 60,875 | $ | 84,806 | $ | 239,688 | $ | 296,978 | ||||||||
Lucky Friday | 28,460 | 29,783 | 102,380 | 98,550 | ||||||||||||
Casa Berardi | 56,939 | 56,065 | 181,679 | 185,098 | ||||||||||||
Nevada Operations | — | 22,906 | 268 | 41,593 | ||||||||||||
Other | 65 | — | 65 | 176 | ||||||||||||
$ | 146,339 | $ | 193,560 | $ | 524,080 | $ | 622,395 | |||||||||
Income (loss) from operations: | ||||||||||||||||
Greens Creek | $ | 1,378 | $ | 26,572 | $ | 63,768 | $ | 127,605 | ||||||||
Lucky Friday | 4,269 | 6,187 | 18,568 | 24,247 | ||||||||||||
Casa Berardi | (5,226 | ) | (6,233 | ) | (8,497 | ) | 4,944 | |||||||||
Nevada Operations | (8,917 | ) | (12,077 | ) | (30,879 | ) | (35,558 | ) | ||||||||
Other | (16,963 | ) | (23,021 | ) | (45,949 | ) | (59,639 | ) | ||||||||
$ | (25,459 | ) | $ | (8,572 | ) | $ | (2,989 | ) | $ | 61,599 | ||||||
March 31, 2022 | December 31, 2021 | |||||||
Identifiable assets: | ||||||||
Greens Creek | $ | 578,565 | $ | 589,944 | ||||
Lucky Friday | 526,971 | 516,545 | ||||||
Casa Berardi | 710,374 | 701,868 | ||||||
Nevada Operations | 467,092 | 468,985 | ||||||
Other | 455,897 | 451,466 | ||||||
$ | 2,738,899 | $ | 2,728,808 |
Sales
September 30, 2022 | December 31, 2021 | |||||||
Identifiable assets: | ||||||||
Greens Creek | $ | 594,811 | $ | 589,944 | ||||
Lucky Friday | 534,114 | 516,545 | ||||||
Casa Berardi | 692,833 | 701,868 | ||||||
Nevada Operations | 467,532 | 468,985 | ||||||
Other | 645,339 | 451,466 | ||||||
$ | 2,934,629 | $ | 2,728,808 | |||||
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
Silver | $ | 66,332 | $ | 77,760 | ||||
Gold | 77,168 | 101,408 | ||||||
Lead | 19,564 | 15,893 | ||||||
Zinc | 35,638 | 29,191 | ||||||
Less: Smelter and refining charges | (12,203 | ) | (13,400 | ) | ||||
Sales of products | $ | 186,499 | $ | 210,852 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Silver | $ | 45,924 | $ | 61,890 | $ | 182,306 | $ | 232,414 | ||||||||
Gold | 69,289 | 94,984 | 228,475 | 282,471 | ||||||||||||
Lead | 16,033 | 18,082 | 56,912 | 56,198 | ||||||||||||
Zinc | 28,051 | 30,273 | 94,865 | 89,501 | ||||||||||||
Less: Smelter and refining charges | (13,023 | ) | (11,669 | ) | (38,543 | ) | (38,189 | ) | ||||||||
$ | 146,274 | $ | 193,560 | $ | 524,015 | $ | 622,395 | |||||||||
Note 3. | Income and Mining Taxes |
Note 3.Income and Mining Taxes
Three Months Ended | ||||||||
March 31, | ||||||||
2022 | 2021 | |||||||
Current: | ||||||||
Domestic | $ | (2,103 | ) | $ | (2,277 | ) | ||
Foreign | (1,741 | ) | (2,286 | ) | ||||
Total current income and mining tax provision | (3,844 | ) | (4,563 | ) | ||||
Deferred: | ||||||||
Domestic | (5,091 | ) | 896 | |||||
Foreign | 3,304 | (1,076 | ) | |||||
Total deferred income and mining tax provision | (1,787 | ) | (180 | ) | ||||
Total income and mining tax provision | $ | (5,631 | ) | $ | (4,743 | ) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Current: | ||||||||||||||||
Domestic | $ | 253 | $ | (2,176 | ) | $ | (2,296 | ) | $ | (7,489 | ) | |||||
Foreign | (1,085 | ) | (1,578 | ) | (4,172 | ) | (4,690 | ) | ||||||||
Total current income and mining tax provision | (832 | ) | (3,754 | ) | (6,468 | ) | (12,179 | ) | ||||||||
Deferred: | ||||||||||||||||
Domestic | 8,156 | 3,213 | 915 | 8,226 | ||||||||||||
Foreign | 2,203 | 5,074 | 9,195 | 7,877 | ||||||||||||
Total deferred income and mining tax benefit | 10,359 | 8,287 | 10,110 | 16,103 | ||||||||||||
Total income and mining tax benefit (provision) | $ | 9,527 | $ | 4,533 | $ | 3,642 | $ | 3,924 | ||||||||
Note 4.Employee Benefit Plans
Note 4. | Employee Benefit Plans |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Service cost | $ | 1,566 | $ | 1,455 | $ | 4,697 | $ | 4,365 | ||||||||
Interest cost | 1,369 | 1,248 | 4,107 | 3,744 | ||||||||||||
Expected return on plan assets | (3,363 | ) | (2,313 | ) | (10,089 | ) | (6,939 | ) | ||||||||
Amortization of prior service cost | 128 | 99 | 384 | 297 | ||||||||||||
Amortization of net loss | 512 | 1,125 | 1,537 | 3,375 | ||||||||||||
Net periodic pension cost | $ | 212 | $ | 1,614 | $ | 636 | $ | 4,842 | ||||||||
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
Service cost | $ | 1,566 | $ | 1,455 | ||||
Interest cost | 1,369 | 1,248 | ||||||
Expected return on plan assets | (3,363 | ) | (2,313 | ) | ||||
Amortization of prior service cost | 128 | 99 | ||||||
Amortization of net loss | 512 | 1,125 | ||||||
Net periodic pension cost | $ | 212 | $ | 1,614 |
The the service cost component of net periodic pension cost is included in the same line items of our condensed consolidated financial statements as other employee compensation costs, and thecosts. The net gain of $1.4 million and net expense of $0.2 million for the three-month periods ended March 31,2022 and 2021, respectively,benefit related to all other components of net periodic pension cost of $1.4 million and $4.1 million, respectively, for the three- and nine-month periods ended September 30, 2022, and net expense of $0.2 million and $0.5 million for the three- and nine-month periods ended September 30, 2021, respectively, is included in other (expense) income on our condensed consolidated statements of operations and comprehensive income (loss) income.
.
Note 5.Income Per Common Share
Note 5. | (Loss) Income Per Common Share |
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
Numerator | ||||||||
Net income | $ | 4,153 | $ | 21,451 | ||||
Preferred stock dividends | (138 | ) | (138 | ) | ||||
Net income applicable to common shares | $ | 4,015 | $ | 21,313 | ||||
Denominator | ||||||||
Basic weighted average common shares | 538,490 | 534,101 | ||||||
Dilutive incentive compensation units, warrants and deferred shares | 5,571 | 6,426 | ||||||
Diluted weighted average common shares | 544,061 | 540,527 | ||||||
Basic income per common share | $ | 0.01 | $ | 0.04 | ||||
Diluted income per common share | $ | 0.01 | $ | 0.04 |
Diluted income per common share for
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Numerator | ||||||||||||||||
Net (loss) income | $ | (23,526 | ) | $ | (979 | ) | $ | (32,896 | ) | $ | 23,220 | |||||
Preferred stock dividends | (138 | ) | (138 | ) | (414 | ) | (414 | ) | ||||||||
Net (loss) income applicable to common shares | $ | (23,664 | ) | $ | (1,117 | ) | $ | (33,310 | ) | $ | 22,806 | |||||
Denominator | ||||||||||||||||
Basic weighted average common shares | 554,531 | 536,966 | 544,000 | 535,542 | ||||||||||||
Dilutive restricted stock units, warrants and deferred shares | — | — | — | 6,227 | ||||||||||||
Diluted weighted average common shares | 554,531 | 536,966 | 544,000 | 541,769 | ||||||||||||
Basic (loss) income per common share | $ | (0.04 | ) | $ | — | $ | (0.06 | ) | $ | 0.04 | ||||||
Diluted (loss) income per common share | $ | (0.04 | ) | $ | — | $ | (0.06 | ) | $ | 0.04 |
loss per share. For the threenine months ended March 31,2022,September 30, 2021, the calculation of diluted income per common share included (i) 1,954,773 incentive compensation2,496,622 restricted stock units, that were unvested during the period, (ii) 1,506,9501,578,293 warrants to purchase one share of common stock and (iii) 2,109,0562,152,578 deferred sharescompensation stock units that were dilutive. For the three months ended March 31,
Note 6. | Stockholders’ Equity |
Note 6.Stockholders’ Equity
we withheld 574,251 shares valued at approximately $4.5 million, or approximately $7.88 per share. March 31, 2022 Senior Notes IQ Notes Total Principal Unamortized discount/premium and issuance costs Long-term debt balance December 31, 2021 Senior Notes IQ Notes Total Principal Unamortized discount/premium and issuance costs Long-term debt balance Twelve-month period ending March 31, Senior Notes IQ Notes Finance Leases Operating Leases 2023 2024 2025 2026 2027 Thereafter Total We We believe we were in compliance with all covenants under the manage price risk exposure created from when revenue is recognized from a shipment of concentrate until final settlement. As of March 31, December 31, Balance sheet line item: 2022 2021 Other current assets Other non-current assets March 31, 2022 Ounces/pounds under contract (in 000's) Average price per ounce/pound Silver Gold Zinc Lead Silver Gold Zinc Lead (ounces) (ounces) (pounds) (pounds) (ounces) (ounces) (pounds) (pounds) Contracts on provisional sales 2022 settlements Contracts on forecasted sales 2022 settlements 2023 settlements 2024 settlements December 31, 2021 Ounces/pounds under contract (in 000's) Average price per ounce/pound Silver Gold Zinc Lead Silver Gold Zinc Lead (ounces) (ounces) (pounds) (pounds) (ounces) (ounces) (pounds) (pounds) Contracts on provisional sales 2022 settlements Contracts on forecasted sales 2022 settlements 2023 settlements We recorded the following balances for the fair value of the forward contracts as of March 31, 2022 December 31, 2021 Balance sheet line item: Contracts in an asset position Contracts in a liability position Net asset (liability) Contracts in an asset position Contracts in a liability position Net asset (liability) Other current assets Current derivatives liability Other non-current liabilities Three Months Ended March 31, 2022 2021 (Loss) gain on derivative contracts Unrealized gain (loss) on investments in equity securities Gain on disposition or exchange of investments Total fair value adjustments, net Description Balance at March 31, 2022 Balance at December 31, 2021 Input Hierarchy Level Assets: Cash and cash equivalents: Money market funds and other bank deposits Level 1 Current and non-current investments: Equity securities – mining industry Level 1 Trade accounts receivable: Receivables from provisional concentrate sales Level 2 Restricted cash balances: Certificates of deposit and other bank deposits Level 1 Derivative contracts - other current assets and other non-current assets: Metal forward contracts Level 2 Foreign exchange contracts Level 2 Total assets Liabilities: Derivative contracts - current and non-current derivatives liabilities: Metal forward contracts Level 2 Foreign exchange contracts Level 2 Total Liabilities metals. The embedded derivative contained in our concentrate sales is adjusted to fair market value through earnings each period prior to final settlement. The Johnny M Mine is in an area known as the San Mateo Creek Basin (“SMCB”), which is an approximately 321 square mile area in New Mexico that contains numerous legacy uranium mines and mills. In addition to Johnny M, Hecla Limited’s predecessor was involved at other mining sites within the SMCB. The EPA appears to have deferred consideration of listing the SMCB site on CERCLA’s National Priorities List (“Superfund”) by removing the site from its emphasis list, and is working with various potentially responsible parties (“PRPs”) at the site in order to study and potentially address perceived groundwater issues within the SMCB. The EE/CA discussed above relates primarily to contaminated rock and soil at the Johnny M site, not groundwater and not elsewhere within the SMCB site. It is possible that Hecla Limited’s liability at the Johnny M Site, and for any other mine site within the SMCB at which Hecla Limited’s predecessor may have operated, will be greater than our current accrual of Litigation Related to Klondex Acquisition Certain statements contained in this Form Item 2. Since its outbreak in 2020, the We have also experienced significant cost inflation compared to 2021 across our operations, principally associated with higher energy prices, increased costs for other consumables such as reagents, explosives and steel, and labor and contractor costs. (in thousands) Silver Gold Base metals Less: smelter and refining charges Total sales of products Three months ended March 31, 2021 Variances - 2022 versus 2021: Price Volume Smelter terms Three months ended March 31, 2022 Three months ended March 31, 2022 2021 Silver – London PM Fix ($/ounce) Realized price per ounce Gold – London PM Fix ($/ounce) Realized price per ounce Lead – LME Final Cash Buyer ($/pound) Realized price per pound Zinc – LME Final Cash Buyer ($/pound) Realized price per pound Three Months Ended March 31, 2022 2021 Silver - Ounces produced Payable ounces sold Gold - Ounces produced Payable ounces sold Lead - Tons produced Payable tons sold Zinc - Tons produced Payable tons sold$1.3$1.8 million and $0.5$4.3 million for the three and nine months ended September 30, 2022, respectively, and $1.5 million and $4.8 million for the three and nine months ended September 30, 2021, respectively. At September 30, 2022, there was $8.4 million of unrecognized stock-based compensation cost which is expected to be recognized over a weighted-average remaining vesting period of 1.8 years.Grant date Award type Number granted Grant date fair value June 21, 2022 Restricted stock 1,103,801 $ 4.43 June 21, 2022 Performance based 322,799 $ 3.78 June 28, 2022 Directors retainer 98,310 $ 4.24 September 30, 2022 Restricted stock 121,826 $ 3.94 three nine months of 2022, and we withheld 737,258 shares valued at approximately $3.7 million, or approximately $4.99 per share. In the first nine months of 2021, respectively.On February 21, 2022, a quarterly cashand we have paid during 2022 pursuant to our dividend of $0.00625 per share of common stock, consisting of $0.00375 per share for the minimum dividend component of our common stock dividend policy and $0.0025 per share for the silver-linked dividend component of the policy, for a total dividend of $3.4 million paid in March 2022. The realized silver price of $23.49 in the fourth quarter of 2021 satisfied the criterion for the silver-linked dividend component of our common stock dividend policy.policy:Note 7.Debt, Credit Facility and LeasesQuarter Realized Silver Price Silver-linked component Minimum component Total dividend per share $24.68 $0.0025 $0.00375 $0.00625 $20.68 $0.0025 $0.00375 $0.00625 March 31,September 30, 2022 and December 31,2021 consisted of our 7.25% Senior Notes due February 15, 2028 (“(“Senior Notes”) and our Series2020-A (the(the “IQ Notes”). and any drawn amounts on the New Credit Agreement, which is described separately below. The following tables summarize our long-term debt balances, excluding interest and borrowings under the New Credit Agreement, as of March 31,September 30, 2022 and December 31,2021 (in thousands): $ 475,000 $ 38,605 $ 513,605 (5,324 ) 571 (4,753 ) $ 469,676 $ 39,176 $ 508,852 $ 475,000 $ 38,051 $ 513,051 (5,552 ) 596 (4,956 ) $ 469,448 $ 38,647 $ 508,095 $ 475,000 $ 35,194 $ 510,194 (4,868 ) 419 (4,449 ) $ 470,132 $ 35,613 $ 505,745 $ 475,000 $ 38,051 $ 513,051 (5,552 ) 596 (4,956 ) $ 469,448 $ 38,647 $ 508,095 March 31,September 30, 2022 (in thousands). The amounts for the IQ Notes are stated in U.S. dollars (“USD”) based on the USD/Canadian dollar (“CAD”) exchange rate as of March 31,September 30, 2022. $ 34,438 $ 2,515 $ 6,365 $ 3,057 34,438 2,515 4,881 2,528 34,438 2,515 3,313 1,079 34,438 39,295 943 1,059 34,438 0 0 1,041 505,130 0 0 6,174 $ 677,320 $ 46,840 $ 15,502 $ 14,938 $ 34,438 $ 2,293 $ 9,296 $ 3,101 34,438 2,293 7,206 1,565 34,438 36,964 3,779 1,065 34,438 1,980 1,060 34,438 — 37 979 487,914 — — 5,878 $ 660,104 $ 41,550 $ 22,298 $ 13,648 In 2018, 21, 2022, we entered into a Credit Agreement (“New Credit Agreement”) with the various financial institutions (the “Lenders”), Bank of Montreal and Bank of America, N.A. as letters of credit issuers, and Bank of America, N.A., as administrative agent for the Lenders and as swingline lender, to replace our prior credit agreement. The New Credit Agreement is a $150 million senior secured revolving facility, with an option to be increased in an aggregate amount not to exceed $75 million. The revolving loans under the New Credit Agreement will have a maturity date of July 21, 2026. Proceeds of the revolving loans under the New Credit Agreement may be used for general corporate purposes. The interest rate on the outstanding loans under the New Credit Agreement is based on the Company’s net leverage ratio and is calculated at (i) Term Secured Overnight Financing Rate (“SOFR”) plus 2% to 3.5%; or (ii) Bank of America’s Base Rate plus 1% to 2.5% with Base Rate being the highest of (i) the Bank of America prime rate, (ii) the Federal Funds rate plus .50% or (iii) Term SOFR plus 1.00%. For each amount drawn, we elect whether we draw on a one, three or six month basis or annual basis for SOFR. If we elect to draw for greater than six months, we pay interest quarterly on the outstanding amount.hashad a term ending on February 7, 2023. As of March 31,2022 and December 31,2021, 0 borrowings no amounts were outstanding under the facility.11arewere also able to obtain letters of credit under the facility, and for any such letters we arewere required to pay a participation fee of between 2.25% and 4.00% of the amount of the letters of credit based on our total leverage ratio, as well as a fronting fee to each issuing bank of 0.20% annually on the average daily dollar amount of any outstanding letters of credit. There were $17.3 million in letters of credit outstanding as of March 31,credit agreementPrior Credit Agreement as of March 31,July 21, 2022.Note 8.Derivative Instrumentsof:•our future foreign currency-related operating cost exposure for of five years into the future may be hedged;•our planned lead and zinc metals price exposure for five years into the future, with certain other limitations, to be covered under derivatives programs that would establish a ceiling for prices to be realized on future metals sales; and•our planned silver and gold metals price exposure for five years into the future, with certain other limitations, may be covered under derivatives programs that would establish a floor, but not a ceiling, for prices to be realized on future metals sales. We currently do not utilize this program.In addition, our risk management policy provides for (i) potential additional programs to manage other foreign currency, exposures and (ii) that price exposure between the time of shipment and final settlement on silver, gold, lead and zinc contained in our concentrate shipments metals price and silver and gold price exposure may be covered under a derivatives programs that wouldprogram with certain other limitations. The silver and gold price program can only establish pricesa floor (puts). We are not currently utilizing this silver and gold program. Our program also utilizes derivatives to be realized on those sales.and San Sebastian operationsoperation as well as the recently acquired Keno Hill development property which Alexco owned areCAD and Mexican pesos (“MXN”), respectively.CAD. Such expenses expose us to exchange rate fluctuations between the USD and CAD and MXN.CAD. We utilizehave a program to manage our exposure to fluctuations in the USD exchange rate between the USDfor these subsidiaries’ future operating and CAD and the impact on our future operatingcapital costs denominated in CAD. In November 2021, we initiated a similarThe program related to future development costs denominated in CAD, and have used a similar program, on a limited basis, related to interest payments on our IQ Notes (see Note 7). The programs utilizeutilizes forward contracts to buy CAD. Each contract related to operating costs isCAD, some of which are designated as a cash flow hedge, while contracts related to development and interest costs have not been designated as hedges as of March 31,2022.hedges. As of March 31,September 30, 2022, we have 146 276.7213.3 and development costs at Casa Berardi to be incurred from2025 1.3333.12March 31,September 30, 2022 and December 31,2021, we recorded the following balances for the fair value of the contracts (in millions): $ 3.9 $ 2.7 3.9 2.5 $ 0.3 $ 2.7 0.3 2.5 5.8 — 5.6 — gainslosses of approximately $7.8$10.8 million related to the effective portion of the hedges were included in accumulated other comprehensive lossincome (loss) as of March 31,September 30, 2022. Unrealized gains and losses will be transferred from accumulated other comprehensive lossincome (loss) to current earnings as the underlying operating expenses are recognized. We estimate approximately $3.7$5.1 million in net unrealized gainslosses included in accumulated other comprehensive lossincome (loss) as of March 31,September 30, 2022 will be reclassified to current earnings in the next twelve months. Net realized gains of approximately $1.1$0.2 million and $2.0 million on contracts related to underlying operating expenses which have been recognized were transferred from accumulated other comprehensive lossincome (loss) and included in cost of sales and other direct production costs for the three and nine months ended March 31,2022. Net gains of approximately $0.4 million related to contracts not designated as hedges and 0September 30, 2022, respectively. No net unrealized gains or losses related to ineffectivenessineffective hedges were included in current earnings for the nine months ended September 30, 2022. Net losses of approximately $0.8 million and $1.1 million for the three and nine months ended September 30, 2022, respectively, related to contracts not designated as hedges were included in fair value adjustments, net on our consolidated statements of operations and comprehensive income for the three and nine months ended March 31,September 30, 2022.•changes in prices of silver, gold, zinc and lead contained in our concentrate shipments between the time of shipment and final settlement; and•changes in prices of zinc and lead (but not silver and gold) contained in our forecasted future concentrate shipments.March 31,September 30, 2022 and December 31,2021: 1,573 5 16,976 5,732 $ 24.73 $ 1,912 $ 1.27 $ 0.97 0 0 37,644 46,517 N/A N/A $ 1.31 $ 0.98 0 0 78,264 75,618 N/A N/A $ 1.30 $ 1.00 0 0 64,650 23,149 N/A N/A $ 1.32 $ 1.01 1,814 6 13,371 4,575 $ 23.02 $ 1,812 $ 1.39 $ 0.96 0 0 57,706 59,194 N/A N/A $ 1.28 $ 0.98 0 0 76,280 71,650 N/A N/A $ 1.29 $ 1.00 2,235 1,840 18,739 14,991 $ 19.54 $ 1,760 $ 1.30 $ 0.96 2,235 1,840 8,763 1,984 N/A N/A $ 1.32 $ 0.97 — — 71,209 75,618 N/A N/A $ 1.30 $ 1.00 — — 78,760 31,526 N/A N/A $ 1.34 $ 1.00 — — 2,480 — N/A N/A $ 1.33 N/A 1,814 6 13,371 4,575 $ 23.02 $ 1,812 $ 1.39 $ 0.96 — — 57,706 59,194 N/A N/A $ 1.28 $ 0.98 — — 76,280 71,650 N/A N/A $ 1.29 $ 1.00 13March 31,September 30, 2022 and forward and put option contracts as of December 31,2021 (in millions): $ 0.3 $ (0.2 ) $ 0.1 $ 0 $ 0 $ 0 0.5 (39.5 ) (39.0 ) 0.7 (20.1 ) (19.4 ) 0.1 (43.5 ) (43.4 ) 0.4 (18.9 ) (18.5 ) Balance sheet line item:
asset position
a liability
position
(liability)
an asset
position
liability
position
(liability) $ 6.9 $ — $ 6.9 $ — $ — $ — $ 20.5 $ — 20.5 $ — $ — $ — — — — 0.7 (20.1 ) (19.4 ) — — — 0.4 (18.9 ) (18.5 ) lossesgains of approximately $63.0$28.3 million related to the effective portion of the contracts designated as hedges were included in accumulated other comprehensive lossincome (loss) as of March 31,September 30, 2022, and are net of related deferred taxes. Unrealized gains and losses will be transferred from accumulated other comprehensive lossincome (loss) to currentexpensessales are recognized. We estimate approximately $28.0$6.0 million in net unrealized lossesgains included in accumulated other comprehensive lossincome (loss) as of March 31,September 30, 2022 would be reclassified to current earnings in the next twelve months. We recognized a net lossgain of $4.8$1.6 million, including a $0.3$4.2 million gainloss transferred from accumulated other comprehensive loss, andincome (loss), during the three months ended September 30, 2022. For the nine months ended September 30, 2022, we recognized a net gain of $2.8$8.1 million, during the first quarters of 2022 and 2021, respectively,including a $8.1 million loss transferred from accumulated other comprehensive income (loss). These losses were recognized on the contracts utilized to manage exposure to prices of metals in our concentrate shipments, which is included in sales of products.sales. The net losses and gains recognized on the contracts offset gains and losses related$0.6a net gain of $12.1 million inand a net losses and $0.5loss of $4.7 million in net gains during the first quarters of 2022three and nine months ended September 30, 2021, respectively, on the contracts utilized to manage exposure to prices for forecasted future sales.sales, which were not designated as hedges. The net losses and gainsgain or loss on these contracts are included as a separate line item under other income (expense), as they relate to forecasted future sales, as opposed to sales that have already taken place but are subject to final pricing as discussed in the preceding paragraph. Increases in zinc and lead prices resulted in the net loss for the first quarter of 2022.revolving credit agreementNew Credit Agreement would cause a default under the derivative contract. As of March 31,September 30, 2022, we have not posted any separate collateral related to these contracts. The fair value of derivatives in a net liability position related to these agreements was $83.2$14.2 million as of March 31,September 30, 2022, which includes accrued interest but excludes any adjustment for nonperformance risk. If we were in breach of any of the cross defaultthese provisions at March 31,September 30, 2022, we could have been required to settle our obligations under the agreements at their termination value of $83.2$14.2 million.Note 9.Fair Value Measurement $ (201 ) $ 473 6,100 (3,506 ) 66 1,158 $ 5,965 $ (1,875 )
September 30, $ 873 $ 12,148 $ (20) $ (4,692 ) (5,110 ) (2,861 ) (14,749 ) (7,117 ) (3 ) — 66 1,158 $ (4,240 ) $ 9,287 $ (14,703 ) $ (10,651 ) $ 212,029 $ 210,010 29,204 14,470 33,324 36,437 1,041 1,053 74 0 7,829 5,207 $ 283,501 $ 267,177 $ 82,394 $ 37,873 0 8 $ 82,394 $ 37,881 Balance at
September 30, 2022 Balance at
December 31, 2021 Input
Hierarchy Level $ 144,669 $ 210,010 Level 1 13,299 14,470 Level 1 12,477 36,437 Level 2 1,246 1,053 Level 1 591 5,207 Level 2 27,393 — Level 2 $ 199,675 $ 267,177 $ 11,334 $ 8 Level 2 — 37,873 Level 2 $ 11,334 $ 37,881 15non-currentNon-current investmentsavailable for sale securities consist of marketable equity securities of companies in the mining companiesindustry which are valued using quoted market prices for each security. During the first quarter of 2022, we acquired equity securities of various mining companies for a total cost of $10.9 million, and disposed of mining company equity securities acquired for $2.4 million for proceeds of $2.5 million. NaN such activity occurred during the first quarter of 2021.metal. settlementsettlement. We also use financially-settled forward contracts to manage the exposure to changes in prices of silver, gold, zinc and lead contained in our forecasted future sales (seeMarch 31,September 30, 2022, our Senior Notes and IQ Notes were recorded at their carrying value of $469.7$470.1 million and $39.2$35.6 million, respectively, net of unamortized initial purchaser discount/premium and issuance costs. The estimated fair values of our Senior Notes and IQ Notes were $498.5$442.2 million and $40.5$32.7 million, respectively, at March 31,September 30, 2022. Quoted market prices, which we consider to be Level 1 inputs, are utilized to estimate fair values of the Senior Notes. Unobservable inputs which we consider to be Level 3, including an assumed current annual yield of 6%8.7%, are utilized to estimate the fair value of the IQ Notes. SeeNote 10.Commitments, Contingencies and ObligationsEPAU.S. Environmental Protection Agency (the “EPA”) entered into a Settlement Agreement and Administrative Order on Consent for Removal Action (“Consent Order”) regarding the Johnny M Mine Area near San Mateo, McKinley County, New Mexico. Mining at the Johnny M Mine was conducted for a limited period of time by a predecessor of Hecla Limited, and the EPA had previously asserted that Hecla Limited may be responsible under the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”) for environmental remediation and past costs incurred by the EPA at the site. Under the Consent Order, Hecla Limited agreed to pay (i) $1.1 million to the EPA for its past response costs at the site and (ii) any future response costs at the site under the Consent Order, in exchange for a covenant not to sue by the EPA. In December 2014, Hecla Limited submitted to the EPA the Engineering Evaluation and Cost Analysis (“EE/CA”) for the site which recommended16$9.0$9.0 million due to the increased scope of required remediation.historichistorical mining district, and in the early 1980s Hecla Limited leased 6 mining claims and performed limited exploration activities at the site. Hecla Limited terminated the mining lease in 1988.17Greens Creek and Lucky Friday Environmental Issues10(b)10(b) and 20(a)20(a) of the Securities Exchange Act of 1934 and Rule10b-5March 31,September 30, 2022.March 31,September 30, 2022 included open purchase orders and commitments of approximately $7.7$9.0 million, $10.1$20.4 million, $0.2$1.2 million $4.6Nevada Operations,Keno Hill, respectively.$15.5$22.3 million relating to scheduled payments on finance leases, including interest, primarily for equipment at our Greens Creek, Lucky Friday, Casa Berardi and Nevada Operations units, and total commitments of approximately $14.9$13.6 million relating to payments on operating leases (seeMarch 31,September 30, 2022, we had surety bonds totaling $183.5$193.8 million and letters of credit totaling $17.3$7.8 million in place as financial support for future reclamation and closure costs, self-insurance, and employee benefit plans. The obligations associated with these instruments are generally related to performance requirements that we address through ongoing operations. As the requirements are met, the beneficiary of the associated instruments cancels or returns the instrument to the issuing entity. Certain of these instruments are associated with operating sites with long-lived assets and will remain outstanding until closure of the sites. We believe we are in compliance with all applicable bonding requirements and will be able to satisfy future bonding requirements as they arise.Note 11.Developments in Accounting Pronouncements("FASB"(“FASB”) issued ASU2020-06 2020-06-– Debt with Conversion and Other Options (Subtopic470-20) Hedging—Hedging – Contracts in Entity’s Own Equity (Subtopic815-40)generally accepted accounting principlesGAAP to certain financial instruments with characteristics of liabilities and equity. The update is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years and with early adoption permitted. We adopted the update as of January 1, 2022, which did not have a material impact on our consolidated financial statements or disclosures.182021-08,805)805): Accounting for Contract Assets and Contract2014-09,606)606)("FCA"(“FCA”) announced that after 2021 it would no longer compel banks to submit the rates required to calculate the London Interbank Offered Rate ("LIBOR"(“LIBOR”), which have been widely used as reference rates for various securities and financial contracts, including loans, debt and derivatives. This announcement indicated that the continuation of LIBOR on the current basis would not be guaranteed after 2021. Subsequently in March 2021, the FCA announced some USD LIBOR tenors (overnight, 1 month, 3 month, 6 month and 12 month) will continue to be published until June 30, 2023. Regulators in the U.S. and other jurisdictions have been working to replace these rates with alternative reference interest rates that are supported by transactions in liquid and observable markets, such as the Secured Overnight Financing Rate ("SOFR"). Currently,SOFR. Our New Credit Agreement references SOFR-based rates, compared to our prior credit facility and certainwhich referenced LIBOR based- rates. Certain of our derivative instruments reference LIBOR-based rates. Our credit facility contains provisions specifying alternative interestrates and are in the process of being amended to eliminate the LIBOR-based rate calculationsreferences prior to be employed when LIBOR ceases to be available as a benchmark and we have adhered to the ISDA 2020 IBOR Fallbacks Protocol, which will govern our derivatives upon the final cessation of USD LIBOR. ASU 2020-04,Reference Rate Reform (Topic 848): Facilitation of the Effects ofReference Rate Reform on Financial Reporting, as amended, helps limit the accounting impact from contract modifications, includinghedging relationships, due to the transition from LIBOR to alternative reference rates that are completed by December 31, 2022. January 1, 2023. We do not expect a significant impact to our financial results, financial position or cash flows from the transition from LIBOR to alternative reference interest rates, but we will continue to monitor the impact of this transition until it is completed.Note 12. Subsequent EventsDuring April 2022, we invested approximately $10 million in mining company securities.19221A 1A. – Risk Factorsannual report filed2021 Form 10-K yearquarter ended December 31, 2021 (“2021 Form 10-K”).June 30, 2022. Given these risks and uncertainties, readers are cautioned not to place undue reliance on our forward-looking statements. All subsequent written and oral forward-looking statements attributable to Hecla Mining Company or to persons acting on our behalf are expressly qualified in their entirety by these cautionary statements. Except as required by federal securities laws, we do not intend to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.Management'sManagement’s Discussion and Analysis of Financial Condition and Results of OperationsUnited StatesU.S. silver production at our Greens Creek and Lucky Friday operations. We produce gold at our Casa Berardi operation in Quebec, Canada, and Greens Creek, and produced gold at our Nevada Operations segment prior to suspension of operations during 2021. We are developing the Keno Hill mine in the Yukon, Canada which we acquired on September 7, 2022, and which we believe could become Canada’s largest silver producer. Based upon our operational footprint, we believe we have low political and economic risk compared to other mines located in other parts of the world. Our exploration interests are located in the United States, Canada and Mexico. Our operating and strategic framework is based on expanding our production and locating and developing new resource potential in a safe and responsible manner.First•Produced 3.3 million ounces of silver and 41,642 ounces of gold. See Consolidated Results of Operations below for information on total cost of sales and cash costs and AISC, after by-product credits, per silver and gold ounce for the three-month periods ended March 31, 2022 and 2021.•Continued our trend of strong safety performance, as our All Injury Frequency Rate (“AIFR”) for the first quarter of 2022 was 1.48, 30% below the U.S. national average for MSHA's “metal and nonmetal” category and within 3% of our AIFR of 1.45 for the full year of 2021.•Continued mitigation of the impacts of COVID-19 through refinement of our operational plans and procedures to protect our workforce, operations and communities while maintaining liquidity.•Reported sales of products of $186.5 million.•Generated $37.9 million in net cash provided by operating activities after bi-annual interest payments totaling $18.5 million on the Senior Notes and IQ Notes. See the Financial Liquidity and Capital Resources section below for further discussion.•Made capital expenditures (excluding lease additions and other non-cash items) of approximately $21.5 million, including $3.1 million at Greens Creek, $9.7 million at Lucky Friday, $7.8 million at Casa Berardi and $0.9 million at the Nevada Operations.•Generated $16.4 million in free cash flow. A reconciliation of the non-GAAP measure free cash flow to net cash provided by operating activities, the nearest GAAP measure, is included in the Reconciliation of Cash Flows From Operating Activities (GAAP) to Free Cash Flow (Non-GAAP) section below.•Returned $3.5 million, or 21% of free cash flows, to our shareholders through payment of dividends.•Spent $12.8 million on exploration and pre-development activities.•Achieved the above while increasing our cash balance to $212.0 million, which was $2.0 million higher than at December 31, 2021, with no borrowings on our revolving credit facility, as of March 31, 2022. •rapidly responding to the threats from the COVID-19 pandemic to protect our workforce, operations and communities while maintaining liquidity;•operating our properties safely, in an environmentally responsible and cost-effective manner;•maintaining and investing in exploration and pre-development projects in the vicinities of eleven mining districts and projects we believe to be under-explored and under-invested: Greens Creek on Alaska's Admiralty Island located near Idaho'sIdaho’s Silver Valley in the historic Coeur d'Alened’Alene Mining District; the silver-producing district near Durango, Mexico; in the vicinity of our Casa Berardi mine and the Heva-Hosco project in the Abitibi region of northwestern Quebec, Canada; our projects located in two districts in Nevada; our projects in northwestern Montana; the Creede district of southwestern Colorado; the Kinskuch project in British Columbia, Canada; and the Republic mining district in Washington state;•improving operations at each of our mines, which includes incurring costs for new technologies and equipment;•expanding our proven and probable reserves, mineral resources and production capacity at our properties;•conducting our business with financial stewardship to preserve our financial position in varying metals price and operational environments;•advancing permitting of one or both of our Montana projects; and•continuing to seek opportunities to acquire and invest in mining and exploration properties and companies.-– We face substantial governmental regulation, including the Mine Safety and Health Act, various environmental laws and regulations and the 1872 Mining Law.$1.6$3.1 million inthreenine months ended March 31,September 30, 2022 and 2021, respectively. To mitigate the impact of-– Natural disasters, public health crises (includingmetals prices.inflationary pressures on input costs. Metals prices can be very volatile and are influenced by a number of factors beyond our control (except on a limited basis through the use of derivative contracts). including recent central bank actions to raise interest rates which have negatively impacted precious metals prices. Seeof gold, lead and zincfor all metals sold by us were higher, with the average realized price for silver lower in the first three months ofended September 30, 2022, than in the comparable period last year. The average realized prices for all metals sold by us were lower, except for zinc and gold, in the nine months ended September 30, 2022 than in the comparable period last year, as illustrated by the table in$250$150 million revolving credit agreement, of which $17.3we had drawn $25.0 million as of September 30, 2022, and an additional $7.8 million was used as of March 31,September 30, 2022 for letters of credit, leaving approximately $232.7$117.2 million available for borrowing. of products by metal for the three-monththree- and nine-month periods ended March 31,September 30, 2022 and 2021 were as follows: Three Months Ended
September 30, Nine Months Ended
September 30, (in thousands) 2022 2021 2022 2021 $ 45,924 $ 61,890 $ 182,306 $ 232,414 69,289 94,984 228,475 282,471 16,033 18,082 56,912 56,198 28,051 30,273 94,865 89,501 (13,023 ) (11,669 ) (38,543 ) (38,189 ) $ 146,274 $ 193,560 $ 524,015 $ 622,395 $ 77,760 $ 101,408 $ 45,084 $ (13,400 ) $ 210,852 (2,613 ) 4,298 12,316 (76 ) 13,925 (8,726 ) (28,453 ) (2,198 ) 1,369 (38,008 ) (89 ) (85 ) — (96 ) (270 ) $ 66,332 $ 77,168 $ 55,202 $ (12,203 ) $ 186,499 (in thousands)
and refining
charges
of products $ 61,890 $ 94,984 $ 48,355 $ (11,669 ) $ 193,560 (13,459 ) (3,125 ) (3,637 ) (1,475 ) (21,696 ) (2,134 ) (22,570 ) (634 ) 162 (25,176 ) (373 ) — — (41 ) (414 ) $ 45,924 $ 69,289 $ 44,084 $ (13,023 ) $ 146,274 (in thousands)
and refining
charges
of products $ 232,414 $ 282,471 $ 145,699 $ (38,189 ) $ 622,395 (37,682 ) 2,557 7,748 (3,381 ) (30,758 ) (12,335 ) (56,468 ) (1,670 ) 1,567 (68,906 ) (91 ) (85 ) — 1,460 1,284 $ 182,306 $ 228,475 $ 151,777 $ (38,543 ) $ 524,015 22Lower average realized prices for all metals sold during the third quarter and first nine months of 2022, except for gold and zinc for which the average realized price was higher during the nine months ended September 30, 2022 all compared to the same periods of 2021. These price variances are illustrated in the following table: Three Months Ended
September 30, Nine Months Ended
September 30, 2022 2021 2022 2021 Silver – London PM Fix ($/ounce) $ 19.22 $ 24.36 $ 21.94 $ 25.78 Realized price per ounce $ 18.30 $ 23.97 $ 21.25 $ 25.75 Gold – London PM Fix ($/ounce) $ 1,728 $ 1,789 $ 1,825 $ 1,801 Realized price per ounce $ 1,713 $ 1,792 $ 1,817 $ 1,794 Lead – LME Final Cash Buyer ($/pound) $ 0.90 $ 1.06 $ 0.98 $ 0.98 Realized price per pound $ 0.95 $ 1.02 $ 0.98 $ 1.00 Zinc – LME Final Cash Buyer ($/pound) $ 1.48 $ 1.36 $ 1.65 $ 1.31 Realized price per pound $ 1.23 $ 1.35 $ 1.47 $ 1.34 Average market and realized metals prices for the three-month periods ended March 31, 2022 and 2021 were as follows: $ 23.95 $ 26.29 $ 24.68 $ 25.66 $ 1,874 $ 1,798 $ 1,880 $ 1,770 $ 1.06 $ 0.92 $ 1.08 $ 0.92 $ 1.70 $ 1.25 $ 1.79 $ 1.32 first quartersthree- and nine-month periods ended September 30, 2022, we recorded net negative price adjustments to provisional settlements of 2022$6.6 million and 2021, we recorded$21.5 million, respectively, compared to net positive price adjustments to provisional settlements of $1.0$0.1 million and $0.6$3.7 million, respectively.respectively, in the three and nine months ended September 31, 2021. The price adjustments related to silver, gold, leadzinc and zinclead contained in our concentrate shipments were largelypartially offset by gains and losses on forward contracts for those metals. Seedorécarbon material shipped during the period. 3,324,708 3,459,446 2,687,261 3,030,026 41,642 52,004 41,053 57,286 10,863 10,704 9,054 8,668 14,946 16,107 9,947 11,027 Three Months Ended
September 30, Nine Months Ended
September 30, 2022 2021 2022 2021 Ounces produced 3,549,392 2,676,084 10,525,917 9,660,313 Payable ounces sold 2,479,724 2,581,690 8,554,894 9,027,180 Ounces produced 44,747 42,207 132,173 153,350 Payable ounces sold 40,443 53,000 125,721 157,454 Tons produced 11,600 9,904 35,794 32,148 Payable tons sold 8,049 8,835 28,788 28,166 Tons produced 15,859 15,546 47,571 48,864 Payable tons sold 11,523 11,174 32,328 33,344 our productsthe concentrates we produce versus the portion of those metals actually paid for by our customers pursuantaccording to the terms of our sales contracts. Differences can also arise from inventory changes incidental to shipping schedules, or variances in ore grades which impact the amount of metals contained in concentrates produced and sold.2328
Silver | Gold | |||||||||||||||||||||||||||
Greens Creek | Lucky Friday | Other (2) | Total Silver (3) | Casa Berardi | Nevada Operations | Total Gold | ||||||||||||||||||||||
Three Months Ended March 31, 2022: | ||||||||||||||||||||||||||||
Sales | $ | 86,090 | $ | 38,040 | $ | — | $ | 124,130 | $ | 62,101 | $ | 268 | $ | 62,369 | ||||||||||||||
Total cost of sales | (49,638 | ) | (29,264 | ) | — | (78,902 | ) | (62,168 | ) | — | (62,168 | ) | ||||||||||||||||
Gross profit (loss) | $ | 36,452 | $ | 8,776 | $ | — | $ | 45,228 | $ | (67 | ) | $ | 268 | $ | 201 | |||||||||||||
Cash Cost After By-product Credits, per Silver or Gold Ounce (1) | $ | (0.90 | ) | $ | 6.57 | $ | — | $ | 1.09 | $ | 1,516 | $ | — | $ | 1,516 | |||||||||||||
AISC, After By-product Credits, per Silver or Gold ounce (1) | $ | 1.90 | $ | 13.15 | $ | — | $ | 7.64 | $ | 1,810 | $ | — | $ | 1,810 | ||||||||||||||
Three Months Ended March 31, 2021: | ||||||||||||||||||||||||||||
Sales | $ | 98,409 | $ | 29,122 | $ | 173 | $ | 127,704 | $ | 72,911 | $ | 10,237 | $ | 83,148 | ||||||||||||||
Total cost of sales | (53,181 | ) | (22,794 | ) | (94 | ) | (76,069 | ) | (59,927 | ) | (7,455 | ) | (67,382 | ) | ||||||||||||||
Gross profit | $ | 45,228 | $ | 6,328 | $ | 79 | $ | 51,635 | $ | 12,984 | $ | 2,782 | $ | 15,766 | ||||||||||||||
Cash Cost After By-product Credits, per Silver or Gold Ounce (1) | $ | (0.67 | ) | $ | 7.62 | $ | — | $ | 1.40 | $ | 1,027 | $ | 1,416 | $ | 1,052 | |||||||||||||
AISC, After By-product Credits, per Silver or Gold ounce (1) | $ | 1.59 | $ | 14.24 | $ | — | $ | 7.21 | $ | 1,272 | $ | 1,461 | $ | 1,284 |
Silver | Gold | |||||||||||||||||||||||||||
Greens Creek | Lucky Friday | Other | Total Silver (2) | Casa Berardi | Nevada Operations | Total Gold | ||||||||||||||||||||||
Three Months Ended September 30, 2022: | ||||||||||||||||||||||||||||
Sales | $ | 60,875 | $ | 28,460 | $ | — | $ | 89,335 | $ | 56,939 | $ | — | $ | 56,939 | ||||||||||||||
Total cost of sales | (52,502 | ) | (24,164 | ) | — | (76,666 | ) | (59,532 | ) | (1,623 | ) | (61,155 | ) | |||||||||||||||
Gross profit (loss) | $ | 8,373 | $ | 4,296 | $ | — | $ | 12,669 | $ | (2,593 | ) | $ | (1,623 | ) | $ | (4,216 | ) | |||||||||||
Cash Cost per silver or gold ounce (1) | $ | 2.65 | $ | 5.23 | $ | — | $ | 3.43 | $ | 1,349 | $ | — | $ | 1,349 | ||||||||||||||
AISC per silver or gold ounce (1) | $ | 8.61 | $ | 15.98 | $ | — | $ | 14.20 | $ | 1,738 | $ | — | $ | 1,738 | ||||||||||||||
Three Months Ended September 30, 2021: | ||||||||||||||||||||||||||||
Sales | $ | 84,806 | $ | 29,783 | $ | — | $ | 114,589 | $ | 56,065 | $ | 22,906 | $ | 78,971 | ||||||||||||||
Total cost of sales | (55,193 | ) | (23,591 | ) | (78,784 | ) | (58,164 | ) | (21,384 | ) | (79,548 | ) | ||||||||||||||||
Gross profit (loss) | $ | 29,613 | $ | 6,192 | $ | — | $ | 35,805 | $ | (2,099 | ) | $ | 1,522 | $ | (577 | ) | ||||||||||||
Cash Cost per silver or gold ounce (1) | $ | 0.74 | $ | 6.35 | $ | — | $ | 2.49 | $ | 1,175 | $ | 1,038 | $ | 1,163 | ||||||||||||||
AISC per silver or gold ounce (1) | $ | 5.94 | $ | 16.79 | $ | — | $ | 12.82 | $ | 1,476 | $ | 1,167 | $ | 1,450 |
Silver | Gold | |||||||||||||||||||||||||||
Greens Creek | Lucky Friday | Other | Total Silver (2) | Casa Berardi | Nevada Operations | Total Gold | ||||||||||||||||||||||
Nine Months Ended September 30, 2022: | ||||||||||||||||||||||||||||
Sales | $ | 239,688 | $ | 102,380 | $ | — | $ | 342,068 | $ | 181,679 | $ | 268 | $ | 181,947 | ||||||||||||||
Total cost of sales | (162,644 | ) | (83,779 | ) | — | (246,423 | ) | (183,570 | ) | (2,878 | ) | (186,448 | ) | |||||||||||||||
Gross profit | $ | 77,044 | $ | 18,601 | $ | — | $ | 95,645 | $ | (1,891 | ) | $ | (2,610 | ) | $ | (4,501 | ) | |||||||||||
Cash Cost per silver or gold ounce (1) | $ | (0.49 | ) | $ | 4.77 | $ | — | $ | 1.11 | $ | 1,409 | $ | — | $ | 1,409 | |||||||||||||
AISC per silver or gold ounce (1) | $ | 4.69 | $ | 12.86 | $ | — | $ | 10.17 | $ | 1,729 | $ | — | $ | 1,729 | ||||||||||||||
Nine Months Ended September 30, 2021: | ||||||||||||||||||||||||||||
Sales | $ | 296,978 | $ | 98,550 | $ | 176 | $ | 395,704 | $ | 185,098 | $ | 41,593 | $ | 226,691 | ||||||||||||||
Total cost of sales | (163,861 | ) | (74,287 | ) | (95 | ) | (238,243 | ) | (172,760 | ) | (46,832 | ) | (219,592 | ) | ||||||||||||||
Gross profit | $ | 133,117 | $ | 24,263 | $ | 81 | $ | 157,461 | $ | 12,338 | $ | (5,239 | ) | $ | 7,099 | |||||||||||||
Cash Cost per silver or gold ounce (1) | $ | (1.03 | ) | $ | 7.37 | $ | — | $ | 1.26 | $ | 1,127 | $ | 1,124 | $ | 1,127 | |||||||||||||
AISC per silver or gold ounce (1) | $ | 2.40 | $ | 15.00 | $ | — | $ | 8.88 | $ | 1,387 | $ | 1,167 | $ | 1,349 |
(1) |
| A reconciliation of these non-GAAP measures to total cost of sales, the most comparable GAAP measure, can be found below inReconciliation of Total Cost of Sales (GAAP) to Cash Cost, Before By-product Credits and Cash Cost, AfterBy-product Credits(non-GAAP) andAll-In Sustaining Cost, BeforeBy-product Credits andAll-In Sustaining Cost, AfterBy-product Credits(non-GAAP) |
(2) |
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Dollars are in thousands (except per ounce and per ton amounts) | Three months ended March 31, | |||||||
2022 | 2021 | |||||||
Sales | $ | 86,090 | $ | 98,409 | ||||
Cost of sales and other direct production costs | (38,218 | ) | (38,360 | ) | ||||
Depreciation, depletion and amortization | (11,420 | ) | (14,821 | ) | ||||
Total cost of sales | (49,638 | ) | (53,181 | ) | ||||
Gross profit | $ | 36,452 | $ | 45,228 | ||||
Tons of ore milled | 211,687 | 194,080 | ||||||
Production: | ||||||||
Silver (ounces) | 2,429,782 | 2,584,870 | ||||||
Gold (ounces) | 11,402 | 13,266 | ||||||
Zinc (tons) | 12,494 | 13,354 | ||||||
Lead (tons) | 4,883 | 4,924 | ||||||
Payable metal quantities sold: | ||||||||
Silver (ounces) | 1,772,391 | 2,247,274 | ||||||
Gold (ounces) | 7,922 | 10,547 | ||||||
Zinc (tons) | 8,092 | 9,097 | ||||||
Lead (tons) | 3,063 | 3,645 | ||||||
Ore grades: | ||||||||
Silver ounces per ton | 13.84 | 16.01 | ||||||
Gold ounces per ton | 0.07 | 0.09 | ||||||
Zinc percent | 6.56 | 7.62 | ||||||
Lead percent | 2.76 | 3.06 | ||||||
Total production cost per ton | $ | 192.16 | $ | 182.61 | ||||
Cash Cost, After By-product Credits, per Silver Ounce (1) | $ | (0.90 | ) | $ | (0.67 | ) | ||
AISC, After By-product Credits, per Silver Ounce (1) | $ | 1.90 | $ | 1.59 | ||||
Capital additions | $ | 3,092 | $ | 1,772 |
Dollars are in thousands (except per ounce and per ton amounts) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Sales | $ | 60,875 | $ | 84,806 | $ | 239,688 | $ | 296,978 | ||||||||
Cost of sales and other direct production costs | (42,197 | ) | (42,096 | ) | (127,290 | ) | (121,451 | ) | ||||||||
Depreciation, depletion and amortization | (10,305 | ) | (13,097 | ) | (35,354 | ) | (42,410 | ) | ||||||||
Total cost of sales | (52,502 | ) | (55,193 | ) | (162,644 | ) | (163,861 | ) | ||||||||
Gross profit | $ | 8,373 | $ | 29,613 | $ | 77,044 | $ | 133,117 | ||||||||
Tons of ore milled | 229,975 | 211,142 | 651,220 | 620,153 | ||||||||||||
Production: | ||||||||||||||||
Silver (ounces) | 2,468,280 | 1,837,270 | 7,308,660 | 6,980,587 | ||||||||||||
Gold (ounces) | 11,412 | 9,734 | 35,227 | 35,859 | ||||||||||||
Zinc (tons) | 12,580 | 13,227 | 38,470 | 41,191 | ||||||||||||
Lead (tons) | 4,428 | 4,591 | 14,495 | 15,142 | ||||||||||||
Payable metal quantities sold: | ||||||||||||||||
Silver (ounces) | 1,663,909 | 1,774,421 | 5,702,301 | 6,493,528 | ||||||||||||
Gold (ounces) | 7,478 | 9,232 | 25,952 | 31,599 | ||||||||||||
Zinc (tons) | 9,138 | 9,472 | 25,725 | 27,783 | ||||||||||||
Lead (tons) | 2,755 | 3,834 | 10,069 | 12,098 | ||||||||||||
Ore grades: | ||||||||||||||||
Silver ounces per ton | 13.63 | 11.14 | 13.83 | 13.84 | ||||||||||||
Gold ounces per ton | 0.07 | 0.07 | 0.07 | 0.08 | ||||||||||||
Zinc percent | 6.3 | % | 7.1 | % | 6.7 | % | 7.4 | % | ||||||||
Lead percent | 2.4 | % | 2.7 | % | 2.7 | % | 3.0 | % | ||||||||
Total production cost per ton | $ | 185.34 | $ | 181.60 | $ | 191.58 | $ | 178.29 | ||||||||
Cash Cost, After By-product Credits, Per Silver Ounce(1) | $ | 2.65 | $ | 0.74 | $ | (0.49 | ) | $ | (1.03 | ) | ||||||
AISC, After By-Product Credits, per Silver Ounce(1) | $ | 8.61 | $ | 5.94 | $ | 4.69 | $ | 2.40 | ||||||||
Capital additions | $ | 6,988 | $ | 6,228 | $ | 24,748 | $ | 14,339 |
(1) |
| A reconciliation of these non-GAAP measures to total cost of sales, the most comparable GAAP measure, can be found below inReconciliation of Total Cost of Sales (GAAP) to Cash Cost, Before By-product Credits and Cash Cost, AfterBy-product Credits(non-GAAP) andAll-In Sustaining Cost, BeforeBy-product Credits andAll-In Sustaining Cost, AfterBy-product Credits(non-GAAP) |
The chartcharts below illustratesillustrate the factors contributing to the variances in Cash Cost, After
The following table summarizes the components of Cash Cost, After
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
Cash Cost, Before By-product Credits, per Silver Ounce | $ | 21.82 | $ | 18.98 | ||||
By-product credits | (22.72 | ) | (19.65 | ) | ||||
Cash Cost, After By-product Credits, per Silver Ounce | $ | (0.90 | ) | $ | (0.67 | ) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Cash Cost, Before By-product Credits, per Silver Ounce | $ | 22.69 | $ | 26.76 | $ | 22.24 | $ | 21.05 | ||||||||
By-product credits | (20.04 | ) | (26.02 | ) | (22.73 | ) | (22.08 | ) | ||||||||
Cash Cost, After By-product Credits, per Silver Ounce | $ | 2.65 | $ | 0.74 | $ | (0.49 | ) | $ | (1.03 | ) | ||||||
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
AISC, Before By-product Credits, per Silver Ounce | $ | 24.62 | $ | 21.24 | ||||
By-product credits | (22.72 | ) | (19.65 | ) | ||||
AISC, After By-product Credits, per Silver Ounce | $ | 1.90 | $ | 1.59 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
AISC, Before By-product Credits, per Silver Ounce | $ | 28.65 | $ | 31.96 | $ | 27.42 | $ | 24.48 | ||||||||
By-product credits | (20.04 | ) | (26.02 | ) | (22.73 | ) | (22.08 | ) | ||||||||
AISC, After By-product Credits, per Silver Ounce | $ | 8.61 | $ | 5.94 | $ | 4.69 | $ | 2.40 | ||||||||
Lucky Friday
Dollars are in thousands (except per ounce and per ton amounts) | Three Months Ended March 31, | |||||||
2022 | 2021 | |||||||
Sales | $ | 38,040 | $ | 29,122 | ||||
Cost of sales and other direct production costs | (21,232 | ) | (16,458 | ) | ||||
Depreciation, depletion and amortization | (8,032 | ) | (6,336 | ) | ||||
Total cost of sales | (29,264 | ) | (22,794 | ) | ||||
Gross profit (loss) | $ | 8,776 | $ | 6,328 | ||||
Tons of ore milled | 77,725 | 81,071 | ||||||
Production: | ||||||||
Silver (ounces) | 887,858 | 863,901 | ||||||
Lead (tons) | 5,980 | 5,780 | ||||||
Zinc (tons) | 2,452 | 2,753 | ||||||
Payable metal quantities sold: | ||||||||
Silver (ounces) | 899,454 | 763,823 | ||||||
Lead (tons) | 5,991 | 5,023 | ||||||
Zinc (tons) | 1,855 | 1,930 | ||||||
Ore grades: | ||||||||
Silver ounces per ton | 12.04 | 11.18 | ||||||
Lead percent | 8.16 | 7.51 | ||||||
Zinc percent | 3.61 | 3.70 | ||||||
Total production cost per ton | $ | 247.17 | $ | 190.54 | ||||
Cash Cost, After By-product Credits, per Silver Ounce (1) | $ | 6.57 | $ | 7.62 | ||||
AISC, After By-product Credits, per Silver Ounce (1) | $ | 13.15 | 14.24 | |||||
Capital additions | $ | 9,652 | $ | 5,912 |
Dollars are in thousands (except per ounce and per ton amounts) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Sales | $ | 28,460 | $ | 29,783 | $ | 102,380 | $ | 98,550 | ||||||||
Cost of sales and other direct production costs | (16,903 | ) | (17,001 | ) | (59,624 | ) | (53,959 | ) | ||||||||
Depreciation, depletion and amortization | (7,261 | ) | (6,590 | ) | (24,155 | ) | (20,328 | ) | ||||||||
Total cost of sales | (24,164 | ) | (23,591 | ) | (83,779 | ) | (74,287 | ) | ||||||||
Gross profit | $ | 4,296 | $ | 6,192 | $ | 18,601 | $ | 24,263 | ||||||||
Tons of ore milled | 90,749 | 78,227 | 265,971 | 241,740 | ||||||||||||
Production: | ||||||||||||||||
Silver (ounces) | 1,074,230 | 831,532 | 3,188,565 | 2,608,727 | ||||||||||||
Lead (tons) | 7,172 | 5,313 | 21,299 | 17,006 | ||||||||||||
Zinc (tons) | 3,279 | 2,319 | 9,101 | 7,673 | ||||||||||||
Payable metal quantities sold: | ||||||||||||||||
Silver (ounces) | 801,115 | 783,672 | 2,822,281 | 2,481,753 | ||||||||||||
Lead (tons) | 5,295 | 5,001 | 18,720 | 16,068 | ||||||||||||
Zinc (tons) | 2,385 | 1,702 | 6,602 | 5,561 | ||||||||||||
Ore grades: | ||||||||||||||||
Silver ounces per ton | 12.50 | 11.21 | 12.67 | 11.34 | ||||||||||||
Lead percent | 8.5 | % | 7.2 | % | 8.5 | % | 7.4 | % | ||||||||
Zinc percent | 4.2 | % | 3.3 | % | 3.9 | % | 3.5 | % | ||||||||
Total production cost per ton | $ | 207.1 | $ | 190.66 | $ | 220.41 | $ | 189.06 | ||||||||
Cash Cost, After By-product Credits, per Silver Ounce(1) | $ | 5.23 | $ | 6.35 | $ | 4.77 | $ | 7.37 | ||||||||
AISC, After By-product Credits, per Silver Ounce(1) | $ | 15.98 | $ | 16.79 | $ | 12.86 | $ | 15.00 | ||||||||
Capital additions | $ | 16,125 | $ | 9,133 | $ | 37,278 | $ | 20,776 |
(1) |
| A reconciliation of these non-GAAP measures to total cost of sales, the most comparable GAAP measure, can be found below inReconciliation of Total Cost of Sales (GAAP) to Cash Cost, Before By-product Credits and Cash Cost, AfterBy-product Credits(non-GAAP) andAll-In Sustaining Cost, BeforeBy-product Credits andAll-In Sustaining Cost, AfterBy-product Credits(non-GAAP) |
The increase in gross
Total production cost per ton increased by approximately 30% in the first quarter of 2022$5.7 million compared to the first quartersame period in 2021, as increased sales from a combination of 2021 primarily due tomining and processing more high grade material and in higher volumes did not offset the impact of lower silver and lead realized prices and higher production costs for labor, equipment maintenance, contractors and consumables and lower mill throughput.
The chartcharts below illustratesillustrate the factors contributing to Cash Cost, After
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
Cash Cost, Before By-product Credits, per Silver Ounce | $ | 26.63 | $ | 24.43 | ||||
By-product credits | (20.06 | ) | (16.81 | ) | ||||
Cash Cost, After By-product Credits, per Silver Ounce | $ | 6.57 | $ | 7.62 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Cash Cost, Before By-product Credits, per Silver Ounce | $ | 22.87 | $ | 24.14 | $ | 23.44 | $ | 24.70 | ||||||||
By-product credits | (17.64 | ) | (17.79 | ) | (18.67 | ) | (17.33 | ) | ||||||||
Cash Cost, After By-product Credits, per Silver Ounce | $ | 5.23 | $ | 6.35 | $ | 4.77 | $ | 7.37 | ||||||||
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
AISC, Before By-product Credits, per Silver Ounce | $ | 33.21 | $ | 31.05 | ||||
By-product credits | (20.06 | ) | (16.81 | ) | ||||
AISC, After By-product Credits, per Silver Ounce | $ | 13.15 | $ | 14.24 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
AISC, Before By-product Credits, per Silver Ounce | $ | 33.62 | $ | 34.58 | $ | 31.53 | $ | 32.33 | ||||||||
By-product credits | (17.64 | ) | (17.79 | ) | (18.67 | ) | (17.33 | ) | ||||||||
AISC, After By-product Credits, per Silver Ounce | $ | 15.98 | $ | 16.79 | 12.86 | $ | 15.00 | |||||||||
Casa Berardi
Dollars are in thousands (except per ounce and per ton amounts) | Three Months Ended March 31, | |||||||
2022 | 2021 | |||||||
Sales | $ | 62,101 | $ | 72,911 | ||||
Cost of sales and other direct production costs | (46,322 | ) | (36,975 | ) | ||||
Depreciation, depletion and amortization | (15,846 | ) | (22,952 | ) | ||||
Total cost of sales | (62,168 | ) | (59,927 | ) | ||||
Gross profit (loss) | $ | (67 | ) | $ | 12,984 | |||
Tons of ore milled | 386,150 | 368,403 | ||||||
Production: | ||||||||
Gold (ounces) | 30,240 | 36,190 | ||||||
Silver (ounces) | 7,068 | 10,675 | ||||||
Payable metal quantities sold: | ||||||||
Gold (ounces) | 33,066 | 40,869 | ||||||
Silver (ounces) | 9,054 | 8,715 | ||||||
Ore grades: | ||||||||
Gold ounces per ton | 0.091 | 0.120 | ||||||
Silver ounces per ton | 0.02 | 0.04 | ||||||
Total production cost per ton | $ | 117.96 | $ | 99.67 | ||||
Cash Cost, After By-product Credits, per Gold Ounce (1) | $ | 1,516 | $ | 1,027 | ||||
AISC, After By-product Credits, per Gold Ounce (1) | $ | 1,810 | $ | 1,272 | ||||
Capital additions | $ | 7,808 | $ | 13,847 |
Dollars are in thousands (except per ounce and per ton amounts) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Sales | $ | 56,939 | $ | 56,065 | $ | 181,679 | $ | 185,098 | ||||||||
Cost of sales and other direct production costs | (44,443 | ) | (38,196 | ) | (137,176 | ) | (111,601 | ) | ||||||||
Depreciation, depletion and amortization | (15,089 | ) | (19,968 | ) | (46,394 | ) | (61,159 | ) | ||||||||
Total cost of sales | (59,532 | ) | (58,164 | ) | (183,570 | ) | (172,760 | ) | ||||||||
Gross profit | $ | (2,593 | ) | $ | (2,099 | ) | $ | (1,891 | ) | $ | 12,338 | |||||
Tons of ore milled | 389,941 | 398,143 | 1,177,709 | 1,141,229 | ||||||||||||
Production: | ||||||||||||||||
Gold (ounces) | 33,335 | 29,722 | 96,881 | 97,245 | ||||||||||||
Silver (ounces) | 6,882 | 7,012 | 22,329 | 25,604 | ||||||||||||
Payable metal quantities sold: | ||||||||||||||||
Gold (ounces) | 32,965 | 31,227 | 99,703 | 102,711 | ||||||||||||
Silver (ounces) | 14,700 | 7,764 | 23,950 | 24,538 | ||||||||||||
Ore grades: | ||||||||||||||||
Gold ounces per ton | 0.10 | 0.09 | 0.09 | 0.10 | ||||||||||||
Silver ounces per ton | 0.02 | 0.02 | 0.02 | 0.02 | ||||||||||||
Total production cost per ton | $ | 114.52 | $ | 86.95 | $ | 115.15 | $ | 95.13 | ||||||||
Cash Cost, After By-product Credits, per Gold Ounce(1) | $ | 1,349 | $ | 1,175 | $ | 1,409 | $ | 1,127 | ||||||||
AISC, After By-product Credits, per Gold Ounce(1) | $ | 1,738 | $ | 1,476 | $ | 1,729 | $ | 1,387 | ||||||||
Capital additions | $ | 10,771 | $ | 11,488 | $ | 26,672 | $ | 37,488 |
(1) |
| A reconciliation of these non-GAAP measures to total cost of sales, the most comparable GAAP measure, can be found below inReconciliation of Total Cost of By-product Credits and Cash Cost, AfterBy-product Credits(non-GAAP) andAll-In Sustaining Cost, BeforeBy-product Credits andAll-In Sustaining Cost, AfterBy-product Credits(non-GAAP) |
Total capital additions decreased by $6.0 million in the first quarter of 2022 compared to the first quarter of 2021 primarily due to growth capital costs incurred in the 2021 period for development of the 160 zone open pit mine.
The chartcharts below illustratesillustrate the factors contributing to Cash Cost, After
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
Cash Cost, Before By-product Credits, per Gold Ounce | $ | 1,521 | $ | 1,035 | ||||
By-product credits | (5 | ) | (8 | ) | ||||
Cash Cost, After By-product Credits, per Gold Ounce | $ | 1,516 | $ | 1,027 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Cash Cost, Before By-product Credits, per Gold Ounce | $ | 1,353 | $ | 1,181 | $ | 1,415 | $ | 1,134 | ||||||||
By-product credits | (4) | (6) | (6) | (7) | ||||||||||||
Cash Cost, After By-product Credits, per Gold Ounce | $ | 1,349 | $ | 1,175 | $ | 1,409 | $ | 1,127 | ||||||||
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
AISC, Before By-product Credits, per Gold Ounce | $ | 1,815 | $ | 1,280 | ||||
By-product credits | (5 | ) | (8 | ) | ||||
AISC, After By-product Credits, per Gold Ounce | $ | 1,810 | $ | 1,272 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
AISC, Before By-product Credits, per Gold Ounce | $ | 1,742 | $ | 1,482 | $ | 1,735 | $ | 1,394 | ||||||||
By-product credits | (4) | (6) | (6) | (7) | ||||||||||||
AISC, After By-product Credits, per Gold Ounce | $ | 1,738 | $ | 1,476 | $ | 1,729 | $ | 1,387 | ||||||||
Dollars are in thousands (except per ounce and per ton amounts) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Sales | $ | — | $ | 22,906 | $ | 268 | $ | 41,593 | ||||||||
Cost of sales and other direct production costs | (1,285 | ) | (15,249 | ) | (2,418 | ) | (31,811 | ) | ||||||||
Depreciation, depletion and amortization | (338 | ) | (6,135 | ) | (460 | ) | (15,021 | ) | ||||||||
Total cost of sales | (1,623 | ) | (21,384 | ) | (2,878 | ) | (46,832 | ) | ||||||||
Gross (loss) profit | $ | (1,623 | ) | $ | 1,522 | $ | (2,610 | ) | $ | (5,239 | ) | |||||
Payable metal quantities sold: | ||||||||||||||||
Gold (ounces) | — | 12,542 | 65 | 23,097 | ||||||||||||
Silver (ounces) | — | 15,833 | 6,363 | 23,868 |
Nevada Operations
Dollars are in thousands (except per ounce and per ton amounts) | Three Months Ended March 31, | |||||||
2022 | 2021 | |||||||
Sales | $ | 268 | $ | 10,237 | ||||
Cost of sales and other direct production costs | — | (4,495 | ) | |||||
Depreciation, depletion and amortization | — | (2,960 | ) | |||||
Total cost of sales | — | (7,455 | ) | |||||
Gross profit | $ | 268 | $ | 2,782 | ||||
Tons of ore milled | — | 16,459 | ||||||
Production: | ||||||||
Gold (ounces) | — | 2,548 | ||||||
Silver (ounces) | — | — | ||||||
Payable metal quantities sold: | ||||||||
Gold (ounces) | 65 | 5,823 | ||||||
Silver (ounces) | 6,363 | 6,821 | ||||||
Ore grades: | ||||||||
Gold ounces per ton | — | 0.185 | ||||||
Silver ounces per ton | — | — | ||||||
Total production cost per ton | $ | — | $ | 360.72 | ||||
Cash Cost, After By-product Credits, per Gold Ounce (1) | $ | — | $ | 1,416 | ||||
AISC, After By-product Credits, per Gold Ounce (1) | $ | — | $ | 1,461 | ||||
Capital additions | $ | 876 | $ | 89 |
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The decrease in gross profit for the first quarter of 2022 comparedore stockpiled to the first quarter of 2021 is a result of sales volume, with the final sale of 2021 production occurring in the first quarter of 2022. Development ceased at Fire Creek in the second quarter of 2019 when the decision was made to limit near-term production to areas of the mine where development was already completed. Mining of non-refractory ore at Fire Creek in areas where development had already been performed was completed in the fourth quarter of 2020.estimated net realizable value. During 2021, production and revenue were generated from processing of the stockpiled
Exploration activities and pre-development activities related to the Hatter Graben area at Hollister are ongoing. Care and maintenance costs are reported in a separate line item on our consolidated statements of operations and excluded from the calculations of cost of sales and other direct production costs and depreciation, depletion and amortization, total production costs per tonamortization.
was focused on drill testing targets at Aurora, Midas and the Hatter Graben in addition to target generation through detailed mapping, sampling and geological mapping.
Corporate Matters
Cash Cost, After
The Casa Berardi, Nevada Operations and combined gold properties information below reports Cash Cost, After
In thousands (except per ounce amounts) | Three Months Ended March 31, 2022 | |||||||||||||||
Greens Creek | Lucky Friday | Corporate(2) | Total Silver | |||||||||||||
Total cost of sales | $ | 49,638 | $ | 29,264 | $ | 78,902 | ||||||||||
Depreciation, depletion and amortization | (11,420 | ) | (8,032 | ) | (19,452 | ) | ||||||||||
Treatment costs | 9,096 | 3,677 | 12,773 | |||||||||||||
Change in product inventory | 6,538 | (905 | ) | 5,633 | ||||||||||||
Reclamation and other costs | (850 | ) | (361 | ) | (1,211 | ) | ||||||||||
Cash Cost, Before By-product Credits (1) | 53,002 | 23,643 | 76,645 | |||||||||||||
Reclamation and other costs | 705 | 282 | 987 | |||||||||||||
Exploration | 165 | — | 716 | 881 | ||||||||||||
Sustaining capital | 5,956 | 5,562 | 48 | 11,566 | ||||||||||||
General and administrative | 8,294 | 8,294 | ||||||||||||||
AISC, Before By-product Credits (1) | 59,828 | 29,487 | 98,373 | |||||||||||||
By-product credits: | ||||||||||||||||
Zinc | (28,651 | ) | (5,977 | ) | (34,628 | ) | ||||||||||
Gold | (18,583 | ) | — | (18,583 | ) | |||||||||||
Lead | (7,966 | ) | (11,836 | ) | (19,802 | ) | ||||||||||
Total By-product credits | (55,200 | ) | (17,813 | ) | (73,013 | ) | ||||||||||
Cash Cost, After By-product Credits | $ | (2,198 | ) | $ | 5,830 | $ | 3,632 | |||||||||
AISC, After By-product Credits | $ | 4,628 | $ | 11,674 | $ | 25,360 | ||||||||||
Divided by ounces produced | 2,430 | 888 | 3,318 | |||||||||||||
Cash Cost, Before By-product Credits, per Ounce | $ | 21.82 | $ | 26.63 | $ | 23.10 | ||||||||||
By-product credits per ounce | (22.72 | ) | (20.06 | ) | (22.01 | ) | ||||||||||
Cash Cost, After By-product Credits, per Ounce | $ | (0.90 | ) | $ | 6.57 | $ | 1.09 | |||||||||
AISC, Before By-product Credits, per Ounce | $ | 24.62 | $ | 33.21 | $ | 29.65 | ||||||||||
By-product credits per ounce | (22.72 | ) | (20.06 | ) | (22.01 | ) | ||||||||||
AISC, After By-product Credits, per Ounce | $ | 1.90 | $ | 13.15 | $ | 7.64 |
In thousands (except per ounce amounts) | Three Months Ended September 30, 2022 | |||||||||||||||
Greens Creek | Lucky Friday | Corporate (2) | Total Silver | |||||||||||||
Total cost of sales | $ | 52,502 | $ | 24,164 | $ | — | $ | 76,666 | ||||||||
Depreciation, depletion and amortization | (10,305 | ) | (7,261 | ) | — | (17,566 | ) | |||||||||
Treatment costs | 9,477 | 4,791 | — | 14,268 | ||||||||||||
Change in product inventory | 4,464 | 3,022 | — | 7,486 | ||||||||||||
Reclamation and other costs | (118 | ) | (152 | ) | — | (270 | ) | |||||||||
Cash Cost, Before By-product Credits(1) | 56,020 | 24,564 | 80,584 | |||||||||||||
Reclamation and other costs | 705 | 282 | — | 987 | ||||||||||||
Sustaining exploration | 3,776 | — | 722 | 4,498 | ||||||||||||
Sustaining capital | 10,219 | 11,264 | 187 | 21,670 | ||||||||||||
General and administrative | — | — | 11,003 | 11,003 | ||||||||||||
AISC, Before By-product Credits(1) | 70,720 | 36,110 | 11,912 | 118,742 | ||||||||||||
By-product credits: | ||||||||||||||||
Zinc | (26,244 | ) | (7,155 | ) | — | (33,399 | ) | |||||||||
Gold | (17,019 | ) | — | — | (17,019 | ) | ||||||||||
Lead | (6,212 | ) | (11,796 | ) | — | (18,008 | ) | |||||||||
Total By-product credits | (49,475 | ) | (18,951 | ) | — | (68,426 | ) | |||||||||
Cash Cost, After By-product Credits | $ | 6,545 | $ | 5,613 | $ | — | $ | 12,158 | ||||||||
AISC, After By-product Credits | $ | 21,245 | $ | 17,159 | 11,912 | $ | 50,316 | |||||||||
Divided by ounces produced | 2,469 | 1,075 | 3,544 | |||||||||||||
Cash Cost, Before By-product Credits, per Ounce | $ | 22.69 | $ | 22.87 | $ | 22.74 | ||||||||||
By-product credits per ounce | (20.04 | ) | (17.64 | ) | (19.31 | ) | ||||||||||
Cash Cost, After By-product Credits, per Ounce | $ | 2.65 | $ | 5.23 | $ | 3.43 | ||||||||||
AISC, Before By-product Credits, per Ounce | $ | 28.65 | $ | 33.62 | $ | 33.51 | ||||||||||
By-product credits per ounce | (20.04 | ) | (17.64 | ) | (19.31 | ) | ||||||||||
AISC, After By-product Credits, per Ounce | $ | 8.61 | $ | 15.98 | $ | 14.20 | ||||||||||
In thousands (except per ounce amounts) | Three Months Ended March 31, 2022 | |||||||
Casa Berardi | Total Gold | |||||||
Total cost of sales | $ | 62,168 | $ | 62,168 | ||||
Depreciation, depletion and amortization | (15,846 | ) | (15,846 | ) | ||||
Treatment costs | 458 | 458 | ||||||
Change in product inventory | (563 | ) | (563 | ) | ||||
Reclamation and other costs | (210 | ) | (210 | ) | ||||
Cash Cost, Before By-product Credits (1) | 46,007 | 46,007 | ||||||
Reclamation and other costs | 210 | 210 | ||||||
Exploration | 1,394 | 1,394 | ||||||
Sustaining capital | 7,281 | 7,281 | ||||||
General and administrative | — | |||||||
AISC, Before By-product Credits (1) | 54,892 | 54,892 | ||||||
By-product credits: | ||||||||
Silver | (166 | ) | (166 | ) | ||||
Total By-product credits | (166 | ) | (166 | ) | ||||
Cash Cost, After By-product Credits | $ | 45,841 | $ | 45,841 | ||||
AISC, After By-product Credits | $ | 54,726 | $ | 54,726 | ||||
Divided by ounces produced | 30 | 30 | ||||||
Cash Cost, Before By-product Credits, per Ounce | $ | 1,521 | $ | 1,521 | ||||
By-product credits per ounce | (5 | ) | (5 | ) | ||||
Cash Cost, After By-product Credits, per Ounce | $ | 1,516 | $ | 1,516 | ||||
AISC, Before By-product Credits, per Ounce | $ | 1,815 | $ | 1,815 | ||||
By-product credits per ounce | (5 | ) | (5 | ) | ||||
AISC, After By-product Credits, per Ounce | $ | 1,810 | $ | 1,810 |
In thousands (except per ounce amounts) | Three Months ended September 30, 2022 | |||||||
Casa Berardi | Total Gold | |||||||
Total cost of sales | $ | 59,532 | $ | 59,532 | ||||
Depreciation, depletion and amortization | (15,089 | ) | (15,089 | ) | ||||
Treatment costs | 429 | 429 | ||||||
Change in product inventory | 420 | 420 | ||||||
Reclamation and other costs | (203 | ) | (203 | ) | ||||
Cash Cost, Before By-product Credits(1) | 45,089 | 45,089 | ||||||
Reclamation and other costs | 204 | 204 | ||||||
Sustaining exploration | 2,314 | 2,314 | ||||||
Sustaining capital | 10,457 | 10,457 | ||||||
AISC, Before By-product Credits(1) | 58,064 | 58,064 | ||||||
By-product credits: | ||||||||
Silver | (131 | ) | (131 | ) | ||||
Total By-product credits | (131 | ) | (131 | ) | ||||
Cash Cost, After By-product Credits | $ | 44,958 | $ | 44,958 | ||||
AISC, After By-product Credits | $ | 57,933 | $ | 57,933 | ||||
Divided by ounces produced | 33 | 33 | ||||||
Cash Cost, Before By-product Credits, per Ounce | $ | 1,353 | $ | 1,353 | ||||
By-product credits per ounce | (4 | ) | (4 | ) | ||||
Cash Cost, After By-product Credits, per Ounce | $ | 1,349 | $ | 1,349 | ||||
AISC, Before By-product Credits, per Ounce | $ | 1,742 | $ | 1,742 | ||||
By-product credits per ounce | (4 | ) | (4 | ) | ||||
AISC, After By-product Credits, per Ounce | $ | 1,738 | $ | 1,738 | ||||
In thousands (except per ounce amounts) | Three Months Ended March 31, 2022 | |||||||||||
Total Silver | Total Gold | Total | ||||||||||
Total cost of sales | $ | 78,902 | $ | 62,168 | $ | 141,070 | ||||||
Depreciation, depletion and amortization | (19,452 | ) | (15,846 | ) | (35,298 | ) | ||||||
Treatment costs | 12,773 | 458 | 13,231 | |||||||||
Change in product inventory | 5,633 | (563 | ) | 5,070 | ||||||||
Reclamation and other costs | (1,211 | ) | (210 | ) | (1,421 | ) | ||||||
Cash Cost, Before By-product Credits (1) | 76,645 | 46,007 | 122,652 | |||||||||
Reclamation and other costs | 987 | 210 | 1,197 | |||||||||
Exploration | 881 | 1,394 | 2,275 | |||||||||
Sustaining capital | 11,566 | 7,281 | 18,847 | |||||||||
General and administrative | 8,294 | — | 8,294 | |||||||||
AISC, Before By-product Credits (1) | 98,373 | 54,892 | 153,265 | |||||||||
By-product credits: | ||||||||||||
Zinc | (34,628 | ) | — | (34,628 | ) | |||||||
Gold | (18,583 | ) | — | (18,583 | ) | |||||||
Lead | (19,802 | ) | — | (19,802 | ) | |||||||
Silver | (166 | ) | (166 | ) | ||||||||
Total By-product credits | (73,013 | ) | (166 | ) | (73,179 | ) | ||||||
Cash Cost, After By-product Credits | $ | 3,632 | $ | 45,841 | $ | 49,473 | ||||||
AISC, After By-product Credits | $ | 25,360 | $ | 54,726 | $ | 80,086 | ||||||
Divided by ounces produced | 3,318 | 30 | ||||||||||
Cash Cost, Before By-product Credits, per Ounce | $ | 23.10 | $ | 1,521 | ||||||||
By-product credits per ounce | (22.01 | ) | (5 | ) | ||||||||
Cash Cost, After By-product Credits, per Ounce | $ | 1.09 | $ | 1,516 | ||||||||
AISC, Before By-product Credits, per Ounce | $ | 29.65 | $ | 1,815 | ||||||||
By-product credits per ounce | (22.01 | ) | (5 | ) | ||||||||
AISC, After By-product Credits, per Ounce | $ | 7.64 | $ | 1,810 |
In thousands (except per ounce amounts) | Three Months ended September 30, 2022 | |||||||||||
Total Silver | Total Gold | Total | ||||||||||
Total cost of sales | $ | 76,666 | $ | 59,532 | $ | 136,198 | ||||||
Depreciation, depletion and amortization | (17,566 | ) | (15,089 | ) | (32,655 | ) | ||||||
Treatment costs | 14,268 | 429 | 14,697 | |||||||||
Change in product inventory | 7,486 | 420 | 7,906 | |||||||||
Reclamation and other costs | (270 | ) | (203 | ) | (473 | ) | ||||||
Cash Cost, Before By-product Credits(1) | 80,584 | 45,089 | 125,673 | |||||||||
Reclamation and other costs | 987 | 204 | 1,191 | |||||||||
Sustaining exploration | 4,498 | 2,314 | 6,812 | |||||||||
Sustaining capital | 21,670 | 10,457 | 32,127 | |||||||||
General and administrative | 11,003 | — | 11,003 | |||||||||
AISC, Before By-product Credits(1) | 118,742 | 58,064 | 176,806 | |||||||||
By-product credits: | ||||||||||||
Zinc | (33,399 | ) | — | (33,399 | ) | |||||||
Gold | (17,019 | ) | — | (17,019 | ) | |||||||
Lead | (18,008 | ) | — | (18,008 | ) | |||||||
Silver | — | (131 | ) | (131 | ) | |||||||
Total By-product credits | (68,426 | ) | (131 | ) | (68,557 | ) | ||||||
Cash Cost, After By-product Credits | $ | 12,158 | $ | 44,958 | $ | 57,116 | ||||||
AISC, After By-product Credits | $ | 50,316 | $ | 57,933 | $ | 108,249 | ||||||
Divided by ounces produced | 3,544 | 33 | ||||||||||
Cash Cost, Before By-product Credits, per Ounce | $ | 22.74 | $ | 1,353 | ||||||||
By-product credits per ounce | (19.31 | ) | (4 | ) | ||||||||
Cash Cost, After By-product Credits, per Ounce | $ | 3.43 | $ | 1,349 | ||||||||
AISC, Before By-product Credits, per Ounce | $ | 33.51 | $ | 1,742 | ||||||||
By-product credits per ounce | (19.31 | ) | (4 | ) | ||||||||
AISC, After By-product Credits, per Ounce | $ | 14.20 | $ | 1,738 | ||||||||
In thousands (except per ounce amounts) | Three Months Ended March 31, 2021 | |||||||||||||||
Greens Creek | Lucky Friday | Corporate and other(2) | Total Silver | |||||||||||||
Total cost of sales | $ | 53,181 | $ | 22,794 | $ | 94 | $ | 76,069 | ||||||||
Depreciation, depletion and amortization | (14,821 | ) | (6,336 | ) | — | (21,157 | ) | |||||||||
Treatment costs | 10,541 | 4,978 | — | 15,519 | ||||||||||||
Change in product inventory | 401 | (93 | ) | — | 308 | |||||||||||
Reclamation and other costs | (261 | ) | (233 | ) | (94 | ) | (588 | ) | ||||||||
Cash Cost, Before By-product Credits (1) | 49,041 | 21,110 | — | 70,151 | ||||||||||||
Reclamation and other costs | 848 | 264 | — | 1,112 | ||||||||||||
Exploration | 123 | — | 435 | 558 | ||||||||||||
Sustaining capital | 4,892 | 5,454 | — | 10,346 | ||||||||||||
General and administrative | 8,007 | 8,007 | ||||||||||||||
AISC, Before By-product Credits (1) | 54,904 | 26,828 | 8,442 | 90,174 | ||||||||||||
By-product credits: | ||||||||||||||||
Zinc | (22,767 | ) | (4,753 | ) | — | (27,520 | ) | |||||||||
Gold | (20,996 | ) | — | — | (20,996 | ) | ||||||||||
Lead | (7,020 | ) | (9,775 | ) | — | (16,795 | ) | |||||||||
Total By-product credits | (50,783 | ) | (14,528 | ) | — | (65,311 | ) | |||||||||
Cash Cost, After By-product Credits | $ | (1,742 | ) | $ | 6,582 | $ | — | $ | 4,840 | |||||||
AISC, After By-product Credits | $ | 4,121 | $ | 12,300 | $ | 8,442 | $ | 24,863 | ||||||||
Divided by ounces produced | 2,585 | 864 | 3,449 | |||||||||||||
Cash Cost, Before By-product Credits, per Ounce | $ | 18.98 | $ | 24.43 | $ | 20.34 | ||||||||||
By-product credits per ounce | (19.65 | ) | (16.81 | ) | (18.94 | ) | ||||||||||
Cash Cost, After By-product Credits, per Ounce | $ | (0.67 | ) | $ | 7.62 | $ | 1.40 | |||||||||
AISC, Before By-product Credits, per Ounce | $ | 21.24 | $ | 31.05 | $ | 26.15 | ||||||||||
By-product credits per ounce | (19.65 | ) | (16.81 | ) | (18.94 | ) | ||||||||||
AISC, After By-product Credits, per Ounce | $ | 1.59 | $ | 14.24 | 7.21 |
In thousands (except per ounce amounts) | Three Months Ended September 30, 2021 | |||||||||||||||
Greens Creek | Lucky Friday | Corporate and other (2) | Total Silver | |||||||||||||
Total cost of sales | $ | 55,193 | $ | 23,591 | $ | — | $ | 78,784 | ||||||||
Depreciation, depletion and amortization | (13,097 | ) | (6,590 | ) | — | (19,687 | ) | |||||||||
Treatment costs | 7,979 | 3,427 | — | 11,406 | ||||||||||||
Change in product inventory | (122 | ) | (68 | ) | — | (190 | ) | |||||||||
Reclamation and other costs | (786 | ) | (281 | ) | — | (1,067 | ) | |||||||||
Cash Cost, Before By-product Credits(1) | 49,167 | 20,079 | — | 69,246 | ||||||||||||
Reclamation and other costs | 848 | 264 | — | 1,112 | ||||||||||||
Sustaining exploration | 2,472 | — | 474 | 2,946 | ||||||||||||
Sustaining capital | 6,228 | 8,406 | — | 14,634 | ||||||||||||
General and administrative | — | — | 8,874 | 8,874 | ||||||||||||
AISC, Before By-product Credits(1) | 58,715 | 28,749 | 9,348 | 96,812 | ||||||||||||
By-product credits: | ||||||||||||||||
Zinc | (25,295 | ) | (4,611 | ) | — | (29,906 | ) | |||||||||
Gold | (14,864 | ) | — | — | (14,864 | ) | ||||||||||
Lead | (7,640 | ) | (10,188 | ) | — | (17,828 | ) | |||||||||
Total By-product credits | (47,799 | ) | (14,799 | ) | — | (62,598 | ) | |||||||||
Cash Cost, After By-product Credits | $ | 1,368 | $ | 5,280 | — | $ | 6,648 | |||||||||
AISC, After By-product Credits | $ | 10,916 | $ | 13,950 | 9,348 | $ | 34,214 | |||||||||
Divided by ounces produced | 1,837 | 832 | 2,669 | |||||||||||||
Cash Cost, Before By-product Credits, per Ounce | $ | 26.76 | $ | 24.14 | $ | 25.93 | ||||||||||
By-product credits per ounce | (26.02 | ) | (17.79 | ) | (23.44 | ) | ||||||||||
Cash Cost, After By-product Credits, per Ounce | $ | 0.74 | $ | 6.35 | $ | 2.49 | ||||||||||
AISC, Before By-product Credits, per Ounce | $ | 31.96 | $ | 34.58 | $ | 36.26 | ||||||||||
By-product credits per ounce | (26.02 | ) | (17.79 | ) | (23.44 | ) | ||||||||||
AISC, After By-product Credits, per Ounce | $ | 5.94 | $ | 16.79 | $ | 12.82 | ||||||||||
In thousands (except per ounce amounts) | Three Months Ended March 31, 2021 | |||||||||||
Casa Berardi | Nevada Operations(3) | Total Gold | ||||||||||
Total cost of sales | $ | 59,927 | $ | 7,455 | $ | 67,382 | ||||||
Depreciation, depletion and amortization | (22,952 | ) | (2,960 | ) | (25,912 | ) | ||||||
Treatment costs | 714 | 11 | 725 | |||||||||
Change in product inventory | (47 | ) | (1,084 | ) | (1,131 | ) | ||||||
Reclamation and other costs | (208 | ) | 185 | (23 | ) | |||||||
Cash Cost, Before By-product Credits (1) | 37,434 | 3,607 | 41,041 | |||||||||
Reclamation and other costs | 208 | 27 | 235 | |||||||||
Exploration | 907 | — | 907 | |||||||||
Sustaining capital | 7,758 | 89 | 7,847 | |||||||||
AISC, Before By-product Credits (1) | 46,307 | 3,723 | 50,030 | |||||||||
By-product credits: | ||||||||||||
Silver | (278 | ) | — | (278 | ) | |||||||
Total By-product credits | (278 | ) | — | (278 | ) | |||||||
Cash Cost, After By-product Credits | $ | 37,156 | $ | 3,607 | $ | 40,763 | ||||||
AISC, After By-product Credits | $ | 46,029 | $ | 3,723 | $ | 49,752 | ||||||
Divided by ounces produced | 36 | 3 | 39 | |||||||||
Cash Cost, Before By-product Credits, per Ounce | $ | 1,035 | $ | 1,416 | $ | 1,059 | ||||||
By-product credits per ounce | (8 | ) | — | (7 | ) | |||||||
Cash Cost, After By-product Credits, per Ounce | $ | 1,027 | $ | 1,416 | $ | 1,052 | ||||||
AISC, Before By-product Credits, per Ounce | $ | 1,280 | $ | 1,461 | $ | 1,291 | ||||||
By-product credits per ounce | (8 | ) | — | (7 | ) | |||||||
AISC, After By-product Credits, per Ounce | $ | 1,272 | $ | 1,461 | $ | 1,284 |
In thousands (except per ounce amounts) | Three Months Ended September 30, 2021 | |||||||||||
Casa Berardi | Nevada Operations | Total Gold | ||||||||||
Total cost of sales | $ | 58,164 | $ | 21,384 | $ | 79,548 | ||||||
Depreciation, depletion and amortization | (19,968 | ) | (6,135 | ) | (26,103 | ) | ||||||
Treatment costs | 475 | 1 | 476 | |||||||||
Change in product inventory | (3,369 | ) | (12,389 | ) | (15,758 | ) | ||||||
Reclamation and other costs | (210 | ) | — | (210 | ) | |||||||
Exclusion of Nevada Operations costs | — | — | — | |||||||||
Cash Cost, Before By-product Credits(1) | 35,092 | 2,861 | 37,953 | |||||||||
Reclamation and other costs | 209 | 327 | 536 | |||||||||
Sustaining exploration | 1,541 | — | 1,541 | |||||||||
Sustaining capital | 7,208 | 29 | 7,237 | |||||||||
AISC, Before By-product Credits(1) | 44,050 | 3,217 | 47,267 | |||||||||
By-product credits: | ||||||||||||
Silver | (169 | ) | (6 | ) | (175 | ) | ||||||
Total By-product credits | (169 | ) | (6 | ) | (175 | ) | ||||||
Cash Cost, After By-product Credits | $ | 34,923 | $ | 2,855 | $ | 37,778 | ||||||
AISC, After By-product Credits | $ | 43,881 | $ | 3,211 | $ | 47,092 | ||||||
Divided by ounces produced | 30 | 3 | 33 | |||||||||
Cash Cost, Before By-product Credits, per Ounce | $ | 1,181 | $ | 1,040 | $ | 1,168 | ||||||
By-product credits per ounce | (6 | ) | (2 | ) | (5 | ) | ||||||
Cash Cost, After By-product Credits, per Ounce | $ | 1,175 | $ | 1,038 | $ | 1,163 | ||||||
AISC, Before By-product Credits, per Ounce | $ | 1,482 | $ | 1,169 | $ | 1,455 | ||||||
By-product credits per ounce | (6 | ) | (2 | ) | (5 | ) | ||||||
AISC, After By-product Credits, per Ounce | $ | 1,476 | $ | 1,167 | $ | 1,450 | ||||||
In thousands (except per ounce amounts) | Three Months Ended March 31, 2021 | |||||||||||
Total Silver | Total Gold | Total | ||||||||||
Total cost of sales | $ | 76,069 | $ | 67,382 | $ | 143,451 | ||||||
Depreciation, depletion and amortization | (21,157 | ) | (25,912 | ) | (47,069 | ) | ||||||
Treatment costs | 15,519 | 725 | 16,244 | |||||||||
Change in product inventory | 308 | (1,131 | ) | (823 | ) | |||||||
Reclamation and other costs | (588 | ) | (23 | ) | (611 | ) | ||||||
Cash Cost, Before By-product Credits (1) | 70,151 | 41,041 | 111,192 | |||||||||
Reclamation and other costs | 1,112 | 235 | 1,347 | |||||||||
Exploration | 558 | 907 | 1,465 | |||||||||
Sustaining capital | 10,346 | 7,847 | 18,193 | |||||||||
General and administrative | 8,007 | — | 8,007 | |||||||||
AISC, Before By-product Credits (1) | 90,174 | 50,030 | 140,204 | |||||||||
By-product credits: | ||||||||||||
Zinc | (27,520 | ) | — | (27,520 | ) | |||||||
Gold | (20,996 | ) | — | (20,996 | ) | |||||||
Lead | (16,795 | ) | — | (16,795 | ) | |||||||
Silver | — | (278 | ) | (278 | ) | |||||||
Total By-product credits | (65,311 | ) | (278 | ) | (65,589 | ) | ||||||
Cash Cost, After By-product Credits | $ | 4,840 | $ | 40,763 | $ | 45,603 | ||||||
AISC, After By-product Credits | $ | 24,863 | $ | 49,752 | $ | 74,615 | ||||||
Divided by ounces produced | 3,449 | 39 | ||||||||||
Cash Cost, Before By-product Credits, per Ounce | $ | 20.34 | $ | 1,059 | ||||||||
By-product credits per ounce | (18.94 | ) | (7 | ) | ||||||||
Cash Cost, After By-product Credits, per Ounce | $ | 1.40 | $ | 1,052 | ||||||||
AISC, Before By-product Credits, per Ounce | $ | 26.15 | $ | 1,291 | ||||||||
By-product credits per ounce | (18.94 | ) | (7 | ) | ||||||||
AISC, After By-product Credits, per Ounce | $ | 7.21 | $ | 1,284 |
In thousands (except per ounce amounts) | Three Months Ended September 30, 2021 | |||||||||||
Total Silver | Total Gold | Total | ||||||||||
Total cost of sales | $ | 78,784 | $ | 79,548 | $ | 158,332 | ||||||
Depreciation, depletion and amortization | (19,687 | ) | (26,103 | ) | (45,790 | ) | ||||||
Treatment costs | 11,406 | 476 | 11,882 | |||||||||
Change in product inventory | (190 | ) | (15,758 | ) | (15,948 | ) | ||||||
Reclamation and other costs | (1,067 | ) | (210 | ) | (1,277 | ) | ||||||
Exclusion of Nevada Operations costs | — | |||||||||||
Cash Cost, Before By-product Credits(1) | 69,246 | 37,953 | 107,199 | |||||||||
Reclamation and other costs | 1,112 | 536 | 1,648 | |||||||||
Sustaining exploration | 2,946 | 1,541 | 4,487 | |||||||||
Sustaining capital | 14,634 | 7,237 | 21,871 | |||||||||
General and administrative | 8,874 | — | 8,874 | |||||||||
AISC, Before By-product Credits(1) | 96,812 | 47,267 | 144,079 | |||||||||
By-product credits: | ||||||||||||
Zinc | (29,906 | ) | — | (29,906 | ) | |||||||
Gold | (14,864 | ) | — | (14,864 | ) | |||||||
Lead | (17,828 | ) | — | (17,828 | ) | |||||||
Silver | — | (175 | ) | (175 | ) | |||||||
Total By-product credits | (62,598 | ) | (175 | ) | (62,773 | ) | ||||||
Cash Cost, After By-product Credits | $ | 6,648 | $ | 37,778 | $ | 44,426 | ||||||
AISC, After By-product Credits | $ | 34,214 | $ | 47,092 | $ | 81,306 | ||||||
Divided by ounces produced | 2,669 | 33 | ||||||||||
Cash Cost, Before By-product Credits, per Ounce | $ | 25.93 | $ | 1,168 | ||||||||
By-product credits per ounce | (23.44 | ) | (5 | ) | ||||||||
Cash Cost, After By-product Credits, per Ounce | $ | 2.49 | $ | 1,163 | ||||||||
AISC, Before By-product Credits, per Ounce | $ | 36.26 | $ | 1,455 | ||||||||
By-product credits per ounce | (23.44 | ) | (5 | ) | ||||||||
AISC, After By-product Credits, per Ounce | $ | 12.82 | $ | 1,450 | ||||||||
In thousands (except per ounce amounts) | Nine Months Ended September 30, 2022 | |||||||||||||||
Greens Creek | Lucky Friday | Corporate (1) | Total Silver | |||||||||||||
Total cost of sales | $ | 162,644 | $ | 83,779 | $ | — | $ | 246,423 | ||||||||
Depreciation, depletion and amortization | (35,354 | ) | (24,155 | ) | — | (59,509 | ) | |||||||||
Treatment costs | 27,369 | 13,271 | — | 40,640 | ||||||||||||
Change in product inventory | 9,899 | 2,620 | — | 12,519 | ||||||||||||
Reclamation and other costs | (1,988 | ) | (769 | ) | — | (2,757 | ) | |||||||||
Cash Cost, Before By-product Credits(1) | 162,570 | 74,746 | — | 237,316 | ||||||||||||
Reclamation and other costs | 2,115 | 846 | — | 2,961 | ||||||||||||
Sustaining exploration | 4,870 | — | 2,207 | 7,077 | ||||||||||||
Sustaining capital | 30,843 | 24,937 | 334 | 56,114 | ||||||||||||
General and administrative | — | — | 28,989 | 28,989 | ||||||||||||
AISC, Before By-product Credits(1) | 200,398 | 100,529 | 31,530 | 332,457 | ||||||||||||
By-product credits: | ||||||||||||||||
Zinc | (87,723 | ) | (21,358 | ) | — | (109,081 | ) | |||||||||
Gold | (55,966 | ) | — | — | (55,966 | ) | ||||||||||
Lead | (22,449 | ) | (38,175 | ) | — | (60,624 | ) | |||||||||
Total By-product credits | (166,138 | ) | (59,533 | ) | — | (225,671 | ) | |||||||||
Cash Cost, After By-product Credits | $ | (3,568 | ) | $ | 15,213 | — | $ | 11,645 | ||||||||
AISC, After By-product Credits | $ | 34,260 | $ | 40,996 | $ | 31,530 | $ | 106,786 | ||||||||
Divided by ounces produced | 7,309 | 3,189 | 10,498 | |||||||||||||
Cash Cost, Before By-product Credits, per Ounce | $ | 22.24 | $ | 23.44 | $ | 22.61 | ||||||||||
By-product credits per ounce | (22.73 | ) | (18.67 | ) | (21.50 | ) | ||||||||||
Cash Cost, After By-product Credits, per Ounce | $ | (0.49 | ) | $ | 4.77 | $ | 1.11 | |||||||||
AISC, Before By-product Credits, per Ounce | $ | 27.42 | $ | 31.53 | $ | 31.67 | ||||||||||
By-product credits per ounce | (22.73 | ) | (18.67 | ) | (21.50 | ) | ||||||||||
AISC, After By-product Credits, per Ounce | $ | 4.69 | $ | 12.86 | $ | 10.17 | ||||||||||
In thousands (except per ounce amounts) | Nine Months Ended September 30, 2022 | |||||||
Casa Berardi | Total Gold | |||||||
Total cost of sales | $ | 183,570 | $ | 183,570 | ||||
Depreciation, depletion and amortization | (46,394 | ) | (46,394 | ) | ||||
Treatment costs | 1,345 | 1,345 | ||||||
Change in product inventory | (936 | ) | (936 | ) | ||||
Reclamation and other costs | (623 | ) | (623 | ) | ||||
Cash Cost, Before By-product Credits(1) | 136,962 | 136,962 | ||||||
Reclamation and other costs | 623 | 623 | ||||||
Sustaining exploration | 4,886 | 4,886 | ||||||
Sustaining capital | 25,587 | 25,587 | ||||||
AISC, Before By-product Credits(1) | 168,058 | 168,058 | ||||||
By-product credits: | ||||||||
Silver | (485 | ) | (485 | ) | ||||
Total By-product credits | (485 | ) | (485 | ) | ||||
Cash Cost, After By-product Credits | $ | 136,477 | $ | 136,477 | ||||
AISC, After By-product Credits | $ | 167,573 | $ | 167,573 | ||||
Divided by ounces produced | 97 | 97 | ||||||
Cash Cost, Before By-product Credits, per Ounce | $ | 1,415 | $ | 1,415 | ||||
By-product credits per ounce | (6 | ) | (6 | ) | ||||
Cash Cost, After By-product Credits, per Ounce | $ | 1,409 | $ | 1,409 | ||||
AISC, Before By-product Credits, per Ounce | $ | 1,735 | $ | 1,735 | ||||
By-product credits per ounce | (6 | ) | (6 | ) | ||||
AISC, After By-product Credits, per Ounce | $ | 1,729 | $ | 1,729 | ||||
In thousands (except per ounce amounts) | Nine Months Ended September 30, 2022 | |||||||||||
Total Silver | Total Gold | Total | ||||||||||
Total cost of sales | $ | 246,423 | $ | 183,570 | $ | 429,993 | ||||||
Depreciation, depletion and amortization | (59,509 | ) | (46,394 | ) | (105,903 | ) | ||||||
Treatment costs | 40,640 | 1,345 | 41,985 | |||||||||
Change in product inventory | 12,519 | (936 | ) | 11,583 | ||||||||
Reclamation and other costs | (2,757 | ) | (623 | ) | (3,380 | ) | ||||||
Cash Cost, Before By-product Credits(1) | 237,316 | 136,962 | 374,278 | |||||||||
Reclamation and other costs | 2,961 | 623 | 3,584 | |||||||||
Sustaining exploration | 7,077 | 4,886 | 11,963 | |||||||||
Sustaining capital | 56,114 | 25,587 | 81,701 | |||||||||
General and administrative | 28,989 | — | 28,989 | |||||||||
AISC, Before By-product Credits(1) | 332,457 | 168,058 | 500,515 | |||||||||
By-product credits: | ||||||||||||
Zinc | (109,081 | ) | — | (109,081 | ) | |||||||
Gold | (55,966 | ) | — | (55,966 | ) | |||||||
Lead | (60,624 | ) | — | (60,624 | ) | |||||||
Silver | (485 | ) | (485 | ) | ||||||||
Total By-product credits | (225,671 | ) | (485 | ) | (226,156 | ) | ||||||
Cash Cost, After By-product Credits | $ | 11,645 | $ | 136,477 | $ | 148,122 | ||||||
AISC, After By-product Credits | $ | 106,786 | $ | 167,573 | $ | 274,359 | ||||||
Divided by ounces produced | 10,498 | 97 | ||||||||||
Cash Cost, Before By-product Credits, per Ounce | $ | 22.61 | $ | 1,415 | ||||||||
By-product credits per ounce | (21.50 | ) | (6 | ) | ||||||||
Cash Cost, After By-product Credits, per Ounce | $ | 1.11 | $ | 1,409 | ||||||||
AISC, Before By-product Credits, per Ounce | $ | 31.67 | $ | 1,735 | ||||||||
By-product credits per ounce | (21.50 | ) | (6 | ) | ||||||||
AISC, After By-product Credits, per Ounce | $ | 10.17 | $ | 1,729 | ||||||||
In thousands (except per ounce amounts) | Nine Months Ended September 30, 2021 | |||||||||||||||
Greens Creek | Lucky Friday | Corporate and other (2) | Total Silver | |||||||||||||
Total cost of sales | $ | 163,861 | $ | 74,287 | $ | 95 | $ | 238,243 | ||||||||
Depreciation, depletion and amortization | (42,410 | ) | (20,328 | ) | — | (62,738 | ) | |||||||||
Treatment costs | 27,444 | 13,087 | — | 40,531 | ||||||||||||
Change in product inventory | (156 | ) | (1,757 | ) | — | (1,913 | ) | |||||||||
Reclamation and other costs | (1,777 | ) | (840 | ) | (95 | ) | (2,712 | ) | ||||||||
Cash Cost, Before By-product Credits(1) | 146,962 | 64,449 | 211,411 | |||||||||||||
Reclamation and other costs | 2,543 | 792 | 3,335 | |||||||||||||
Sustaining exploration | 3,895 | — | 1,359 | 5,254 | ||||||||||||
Sustaining capital | 17,459 | 19,104 | — | 36,563 | ||||||||||||
General and administrative | — | — | 27,985 | 27,985 | ||||||||||||
AISC, Before By-product Credits(1) | 170,859 | 84,345 | 29,344 | 284,548 | ||||||||||||
By-product credits: | ||||||||||||||||
Zinc | (74,571 | ) | (14,457 | ) | — | (89,028 | ) | |||||||||
Gold | (56,299 | ) | — | (56,299 | ) | |||||||||||
Lead | (23,265 | ) | (30,762 | ) | — | (54,027 | ) | |||||||||
Total By-product credits | (154,135 | ) | (45,219 | ) | — | (199,354 | ) | |||||||||
Cash Cost, After By-product Credits | $ | (7,173 | ) | $ | 19,230 | $ | — | $ | 12,057 | |||||||
AISC, After By-product Credits | $ | 16,724 | $ | 39,126 | $ | 29,344 | $ | 85,194 | ||||||||
Divided by ounces produced | 6,981 | 2,609 | 9,590 | |||||||||||||
Cash Cost, Before By-product Credits, per Ounce | $ | 21.05 | $ | 24.70 | $ | 22.05 | ||||||||||
By-product credits per ounce | (22.08 | ) | (17.33 | ) | (20.79 | ) | ||||||||||
Cash Cost, After By-product Credits, per Ounce | $ | (1.03 | ) | $ | 7.37 | $ | 1.26 | |||||||||
AISC, Before By-product Credits, per Ounce | $ | 24.48 | $ | 32.33 | $ | 29.67 | ||||||||||
By-product credits per ounce | (22.08 | ) | (17.33 | ) | (20.79 | ) | ||||||||||
AISC, After By-product Credits, per Ounce | $ | 2.40 | $ | 15.00 | $ | 8.88 | ||||||||||
In thousands (except per ounce amounts) | Nine Months Ended September 30, 2021 | |||||||||||
Casa Berardi | Nevada Operations | Total Gold | ||||||||||
Total cost of sales | $ | 172,760 | $ | 46,832 | $ | 219,592 | ||||||
Depreciation, depletion and amortization | (61,159 | ) | (15,021 | ) | (76,180 | ) | ||||||
Treatment costs | 1,723 | 1,731 | 3,454 | |||||||||
Change in product inventory | (2,401 | ) | (9,951 | ) | (12,352 | ) | ||||||
Reclamation and other costs | (632 | ) | 299 | (333 | ) | |||||||
Cash Cost, Before By-product Credits(1) | 110,291 | 23,890 | 134,181 | |||||||||
Reclamation and other costs | 632 | 681 | 1,313 | |||||||||
Sustaining exploration | 3,551 | — | 3,551 | |||||||||
Sustaining capital | 21,030 | 195 | 21,225 | |||||||||
AISC, Before By-product Credits(1) | 135,504 | 24,766 | 160,270 | |||||||||
By-product credits: | ||||||||||||
Silver | (656 | ) | (1,131 | ) | (1,787 | ) | ||||||
Total By-product credits | (656 | ) | (1,131 | ) | (1,787 | ) | ||||||
Cash Cost, After By-product Credits | $ | 109,635 | $ | 22,759 | $ | 132,394 | ||||||
AISC, After By-product Credits | $ | 134,848 | $ | 23,635 | $ | 158,483 | ||||||
Divided by ounces produced | 97 | 20 | 117 | |||||||||
Cash Cost, Before By-product Credits, per Ounce | $ | 1,134 | $ | 1,180 | $ | 1,142 | ||||||
By-product credits per ounce | (7 | ) | (56 | ) | (15 | ) | ||||||
Cash Cost, After By-product Credits, per Ounce | $ | 1,127 | $ | 1,124 | $ | 1,127 | ||||||
AISC, Before By-product Credits, per Ounce | $ | 1,394 | $ | 1,223 | $ | 1,364 | ||||||
By-product credits per ounce | (7 | ) | (56 | ) | (15 | ) | ||||||
AISC, After By-product Credits, per Ounce | $ | 1,387 | $ | 1,167 | $ | 1,349 | ||||||
In thousands (except per ounce amounts) | Nine Months Ended September 30, 2021 | |||||||||||
Total Silver | Total Gold | Total | ||||||||||
Total cost of sales | $ | 238,243 | $ | 219,592 | 457,835 | |||||||
Depreciation, depletion and amortization | (62,738 | ) | (76,180 | ) | (138,918 | ) | ||||||
Treatment costs | 40,531 | 3,454 | 43,985 | |||||||||
Change in product inventory | (1,913 | ) | (12,352 | ) | (14,265 | ) | ||||||
Reclamation and other costs | (2,712 | ) | (333 | ) | (3,045 | ) | ||||||
Cash Cost, Before By-product Credits(1) | 211,411 | 134,181 | 345,592 | |||||||||
Reclamation and other costs | 3,335 | 1,313 | 4,648 | |||||||||
Sustaining exploration | 5,254 | 3,551 | 8,805 | |||||||||
Sustaining capital | 36,563 | 21,225 | 57,788 | |||||||||
General and administrative | 27,985 | — | 27,985 | |||||||||
AISC, Before By-product Credits(1) | 284,548 | 160,270 | 444,818 | |||||||||
By-product credits: | ||||||||||||
Zinc | (89,028 | ) | — | (89,028 | ) | |||||||
Gold | (56,299 | ) | — | (56,299 | ) | |||||||
Lead | (54,027 | ) | — | (54,027 | ) | |||||||
Silver | — | (1,787 | ) | (1,787 | ) | |||||||
Total By-product credits | (199,354 | ) | (1,787 | ) | (201,141 | ) | ||||||
Cash Cost, After By-product Credits | $ | 12,057 | $ | 132,394 | $ | 144,451 | ||||||
AISC, After By-product Credits | $ | 85,194 | $ | 158,483 | $ | 243,677 | ||||||
Divided by ounces produced | 9,590 | 117 | ||||||||||
Cash Cost, Before By-product Credits, per Ounce | $ | 22.05 | $ | 1,142 | ||||||||
By-product credits per ounce | (20.79 | ) | (15 | ) | ||||||||
Cash Cost, After By-product Credits, per Ounce | $ | 1.26 | $ | 1,127 | ||||||||
AISC, Before By-product Credits, per Ounce | $ | 29.67 | $ | 1,364 | ||||||||
By-product credits per ounce | (20.79 | ) | (15 | ) | ||||||||
AISC, After By-product Credits, per Ounce | $ | 8.88 | $ | 1,349 | ||||||||
(1) | Includes all direct and indirect operating costs related to the physical activities of producing metals, including mining, processing and other plant costs, third-party refining and marketing expense, on-site general and administrative costs and royalties, beforeby-product revenues earned from all metals other than the primary metal produced at each operation. AISC, BeforeBy-product Credits also includeson-site exploration, reclamation, and sustaining capital costs. |
(2) | AISC, Before By-product Credits for our consolidated silver properties includes corporate costs for general and administrative expense, exploration and sustaining capital. |
|
|
Reconciliation of Cash Provided by Operating Activities (GAAP) to Free Cash Flow (non-GAAP)
The non-GAAP measure of free cash flow is calculated as net cash provided by operating activities (GAAP) less additions to properties, plants, equipment and mineral interests (GAAP). Management believes that, when presented in conjunction with comparable GAAP measures, free cash flow is useful to investors in evaluating our operating performance. The following table reconciles net cash provided by operating activities to free cash flow:
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
Net cash provided by operating activities (GAAP) | $ | 37,909 | $ | 37,936 | ||||
Less: Additions to properties, plants, equipment and mineral interests (GAAP) | (21,478 | ) | (21,413 | ) | ||||
Free cash flow | $ | 16,431 | $ | 16,523 |
Financial Liquidity and Capital Resources
Liquidity Overview
Quarterly Average Realized Silver Price ($ per ounce) | Quarterly Silver- Linked Dividend ($ per share) | Annualized Silver-Linked Dividend ($ per share) | Annualized Minimum Dividend ($ per share) | Annualized Dividends per Share: Silver- Linked and Minimum ($ per share) | ||||||||||||||
$ | 20 | $ | 0.0025 | $ | 0.01 | $ | 0.015 | $ | 0.025 | |||||||||
$ | 25 | $ | 0.0100 | $ | 0.04 | $ | 0.015 | $ | 0.055 | |||||||||
$ | 30 | $ | 0.0150 | $ | 0.06 | $ | 0.015 | $ | 0.075 | |||||||||
$ | 35 | $ | 0.0250 | $ | 0.10 | $ | 0.015 | $ | 0.115 | |||||||||
$ | 40 | $ | 0.0350 | $ | 0.14 | $ | 0.015 | $ | 0.155 | |||||||||
$ | 45 | $ | 0.0450 | $ | 0.18 | $ | 0.015 | $ | 0.195 | |||||||||
$ | 50 | $ | 0.0550 | $ | 0.22 | $ | 0.015 | $ | 0.235 |
Quarterly Average Realized Silver Price ($ per ounce) | Quarterly Silver- Linked Dividend ($ per share) | Annualized Silver-Linked Dividend ($ per share) | Annualized Minimum Dividend ($ per share) | Annualized Dividends per Share: Silver- Linked and Minimum ($ per share) | |||||||||||||||||||
Less than $20 | $— | $— | $0.015 | $0.015 | |||||||||||||||||||
$20 | $0.0025 | $0.01 | $0.015 | $0.025 | |||||||||||||||||||
$25 | $0.0100 | $0.04 | $0.015 | $0.055 | |||||||||||||||||||
$30 | $0.0150 | $0.06 | $0.015 | $0.075 | |||||||||||||||||||
$35 | $0.0250 | $0.10 | $0.015 | $0.115 | |||||||||||||||||||
$40 | $0.0350 | $0.14 | $0.015 | $0.155 | |||||||||||||||||||
$45 | $0.0450 | $0.18 | $0.015 | $0.195 | |||||||||||||||||||
$50 | $0.0550 | $0.22 | $0.015 | $0.235 |
The declaration and payment of dividends on our common stock is at the sole discretion of our board of directors, and there can be no assurance that we will continue to declare and pay common stock dividends in the future.
Pursuant
We believe as
Our liquid assets include (in millions):
March 31, 2022 | December 31, 2021 | |||||||
Cash and cash equivalents held in U.S. dollars | $ | 188.6 | $ | 196.2 | ||||
Cash and cash equivalents held in foreign currency | 23.4 | 13.8 | ||||||
Total cash and cash equivalents | 212.0 | 210.0 | ||||||
Marketable equity securities, current and non-current | 29.2 | 14.4 | ||||||
Total cash, cash equivalents and investments | $ | 241.2 | $ | 224.4 |
September 30, 2022 | December 31, 2021 | |||||||
Cash and cash equivalents held in U.S. dollars | $ | 113.9 | $ | 196.2 | ||||
Cash and cash equivalents held in foreign currency | 30.8 | 13.8 | ||||||
Total cash and cash equivalents | 144.7 | 210.0 | ||||||
Marketable equity securities – non-current | 13.3 | 14.4 | ||||||
Total cash, cash equivalents and investments | $ | 158.0 | $ | 224.4 | ||||
Three Months Ended | ||||||||
March 31, 2022 | March 31, 2021 | |||||||
Cash provided by operating activities (in millions) | $ | 37.9 | $ | 37.9 |
$1.1 million.
Nine Months Ended | ||||||||
September 30, 2022 | September 30, 2021 | |||||||
Cash provided by operating activities (in millions) | $ | 53.8 | $ | 167.0 |
Nine Months Ended | ||||||||
September 30, 2022 | September 30, 2021 | |||||||
Cash used in investing activities (in millions) | $ | (127.7 | ) | $ | (78.0 | ) |
Nine Months Ended | ||||||||
September 30, 2022 | September 30, 2021 | |||||||
Cash provided by (used in) financing activities (in millions) | $ | 9.5 | $ | (27.4 | ) |
Three Months Ended | ||||||||
March 31, 2022 | March 31, 2021 | |||||||
Cash used in financing activities (in millions) | $ | (7.2 | ) | $ | (6.8 | ) |
We2022 and 2021, we paid total cash dividends on our common and preferred stock of $3.5totaling $10.5 million and $4.8$17.2 million, respectively. Due to lower realized silver prices during 2022 to date, the dividends paid on our common stock were $6.8 million lower than in the prior year, reflecting our dividend policy discussed above. We issued stock under our ATM program described above for net proceeds of $4.5 million in 2022. We made repayments on our finance leases of $5.2 million and $5.6 million in the first quarter ofnine-month periods ended September 30, 2022 and 2021, respectively. We made repayments on our capital leases of $1.7acquired treasury shares for $3.7 million and $1.9$4.5 million in the first quarterhalf of 2022 and 2021, respectively.
Exchange rate fluctuations between the U.S. dollar and the Canadian dollar and Mexican pesorespectively, as a result of employees’ elections to utilize net share settlement to satisfy their tax withholding obligations related to incentive compensation paid in stock.
Contractual Obligations, Contingent Liabilities and Commitments
Payments Due By Period | ||||||||||||||||||||
Less than 1 year | 1-3 years | 4-5 years | More than 5 years | Total | ||||||||||||||||
Purchase and contractual obligations (1) | $ | 22,645 | $ | — | $ | — | $ | — | $ | 22,645 | ||||||||||
Commitment fees (2) | 1,496 | — | — | — | 1,496 | |||||||||||||||
Finance lease commitments (3) | 6,365 | 8,194 | 943 | — | 15,502 | |||||||||||||||
Operating lease commitments (4) | 3,057 | 3,607 | 2,100 | 6,174 | 14,938 | |||||||||||||||
Senior Notes (5) | 34,438 | 68,875 | 68,875 | 505,132 | 677,320 | |||||||||||||||
IQ Notes (6) | 2,515 | 5,030 | 39,295 | — | 46,840 | |||||||||||||||
Total contractual cash obligations | $ | 70,516 | $ | 85,706 | $ | 111,213 | $ | 511,306 | $ | 778,741 |
Payments Due By Period | ||||||||||||||||||||
Less than 1 year | 1-3 years | 4-5 years | More than 5 years | Total | ||||||||||||||||
Purchase obligations (1) | $ | 33,514 | $ | — | $ | — | $ | — | $ | 33,514 | ||||||||||
Credit facility (2) | 25,722 | 1,447 | 583 | — | 27,752 | |||||||||||||||
Finance lease commitments (3) | 9,296 | 10,985 | 2,017 | — | 22,298 | |||||||||||||||
Operating lease commitments (4) | 3,101 | 2,630 | 2,039 | 5,878 | 13,648 | |||||||||||||||
Senior Notes (5) | 34,438 | 68,876 | 68,876 | 487,914 | 660,104 | |||||||||||||||
IQ Notes (6) | 2,293 | 39,257 | — | — | 41,550 | |||||||||||||||
Total contractual cash obligations | $ | 108,364 | $ | 123,195 | $ | 73,515 | $ | 493,792 | $ | 798,866 | ||||||||||
(1) |
| Consists of open purchase orders and |
(2) |
|
The New Credit Agreement provides for a Note 7 Notes to Condensed Consolidated Financial Statements (Unaudited) |
(3) |
| Includes scheduled finance lease payments of |
(4) |
| We enter into operating leases in the normal course of business. Substantially all lease agreements have fixed payment terms based on the passage of time. Some lease agreements provide us with the option to renew the lease or purchase the leased property. Our future operating lease obligations would change if we exercised these renewal options and if we entered into additional operating lease arrangements. |
(5) |
| On February 19, 2020, we completed an offering of $475 million in aggregate principal amount of our Senior Notes due February 15, 2028. The Senior Notes bear interest at a rate of 7.25% per year, with interest payable on February 15 and August 15 of each Note 7 Notes to Condensed Consolidated Financial Statements (Unaudited) |
(6) |
| On July 9, 2020, we entered into a note purchase agreement pursuant to which we issued our IQ Notes for CAD$50 million (approximately USD$36.8 million at the time of the transaction) in aggregate principal amount. The IQ Notes bear interest on amounts outstanding at a rate of 6.515% per year, payable on January 9 and July 9 of each Note 7 Notes to Condensed Consolidated Financial Statements (Unaudited) |
Hecla'sHecla’s subsidiaries of the Senior Notes and IQ Notes (seeHecla'sHecla’s 100%-owned subsidiaries: Hecla Limited; Silver Hunter Mining Company; Rio Grande Silver, Inc.; Hecla MC Subsidiary, LLC; Hecla Silver Valley, Inc.; Burke Trading, Inc.; Hecla Montana, Inc.; Revett Silver Company; RC Resources, Inc.; Troy Mine Inc.; Revett Exploration, Inc.; Revett Holdings, Inc.; Mines Management, Inc.; Newhi, Inc.; Montanore Minerals Corp.; Hecla Alaska LLC; Hecla Greens Creek Mining Company; Hecla Admiralty Company; Hecla Juneau Mining Company; Klondex Holdings Inc.; Klondex Gold & Silver Mining Co.; Klondex Midas Holdings Limited; Klondex Aurora Mine Inc.; Klondex Hollister Mine Inc;Inc.; and Hecla Quebec, Inc. We completed the offering of the Senior Notes on February 19, 2020 under our shelf registration statement previously filed with the SEC. We issued the IQ Notes in four equal tranches between July and October 2020.•Investments in subsidiaries. The acquisition of a company results in an investment in debt or equity capital on the records of the parent company and a contribution to debt or equity capital on the records of the subsidiary. Such investments and capital contributions are eliminated in consolidation.•Capital contributions. Certain of Hecla's subsidiaries do not generate cash flow, either at all or that is sufficient to meet their capital needs, and their cash requirements are routinely met with inter-company advances from their parent companies. Generally on an annual basis, when not otherwise intended as debt, the boards of directors of such parent companies declare contributions of capital to their subsidiary companies, which increase the parents' investment and the subsidiaries' additional paid-in capital. In consolidation, investments in subsidiaries and related additional paid-in capital are eliminated.•Debt.�� At times, inter-company debt agreements have been established between certain of Hecla's subsidiaries and their parents. The related debt liability and receivable balances, accrued interest expense (if any) and income activity (if any), and payments of principal and accrued interest amounts (if any) by the subsidiary companies to their parents are eliminated in consolidation.•Dividends. Certain of Hecla's subsidiaries which generate cash flow routinely provide cash to their parent companies through inter-company transfers. On at least an annual basis, the boards of directors of such subsidiary companies declare dividends to their parent companies, which reduces the subsidiaries' retained earnings and increases the parents' dividend income. In consolidation, such activity is eliminated.4556
|
|
As of March 31, 2022 | ||||||||||||||||||||
Parent | Guarantors | Non- Guarantors | Eliminations | Consolidated | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Cash and cash equivalents | $ | 164,037 | $ | 29,638 | $ | 18,354 | $ | — | $ | 212,029 | ||||||||||
Other current assets | 4,798 | 125,786 | 1,343 | — | 131,927 | |||||||||||||||
Properties, plants, equipment and mineral interests - net | 1,913 | 2,288,710 | 8,235 | — | 2,298,858 | |||||||||||||||
Intercompany receivable (payable) | (222,013 | ) | (219,670 | ) | 214,657 | 227,026 | — | |||||||||||||
Investments in subsidiaries | 1,566,919 | — | — | (1,566,919 | ) | — | ||||||||||||||
Other non-current assets | 360,176 | 32,607 | (116,294 | ) | (180,404 | ) | 96,085 | |||||||||||||
Total assets | $ | 1,875,830 | $ | 2,257,071 | $ | 126,295 | $ | (1,520,297 | ) | $ | 2,738,899 | |||||||||
Liabilities and Stockholders' Equity | ||||||||||||||||||||
Current liabilities | $ | (410,590 | ) | $ | 251,290 | $ | 1,714 | $ | 345,826 | $ | 188,240 | |||||||||
Long-term debt | 508,852 | 17,878 | 507 | — | 527,237 | |||||||||||||||
Non-current portion of accrued reclamation | — | 99,899 | 3,713 | — | 103,612 | |||||||||||||||
Non-current deferred tax liability | 2,937 | 437,077 | — | (299,204 | ) | 140,810 | ||||||||||||||
Other non-current liabilities | 46,088 | 3,661 | 708 | — | 50,457 | |||||||||||||||
Stockholders' equity | 1,728,543 | 1,447,266 | 119,653 | (1,566,919 | ) | 1,728,543 | ||||||||||||||
Total liabilities and stockholders' equity | $ | 1,875,830 | $ | 2,257,071 | $ | 126,295 | $ | (1,520,297 | ) | $ | 2,738,899 |
As of September 30, 2022 | ||||||||||||||||||||
Parent | Guarantors | Non- Guarantors | Eliminations | Consolidated | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Cash and cash equivalents | $ | 100,333 | $ | 24,486 | $ | 19,850 | $ | — | $ | 144,669 | ||||||||||
Other current assets | 11,939 | 118,657 | 8,655 | — | 139,251 | |||||||||||||||
Properties, plants, equipment and mineral interests, net | 1,913 | 2,288,145 | 263,916 | 2,553,974 | ||||||||||||||||
Intercompany receivable (payable) | (195,180 | ) | (188,353 | ) | 321,214 | 62,319 | — | |||||||||||||
Investments in subsidiaries | 2,110,836 | — | — | (2,110,836 | ) | — | ||||||||||||||
Other non-current assets | 378,230 | 29,860 | 32,545 | (343,900 | ) | 96,735 | ||||||||||||||
Total assets | $ | 2,408,071 | $ | 2,272,795 | $ | 646,180 | $ | (2,392,417 | ) | $ | 2,934,629 | |||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||
Current liabilities | $ | (105,320 | ) | $ | 246,660 | $ | 12,561 | $ | 7,484 | $ | 161,385 | |||||||||
Long-term debt | 530,745 | 20,242 | — | — | 550,987 | |||||||||||||||
Non-current portion of accrued reclamation | — | 99,888 | 5,829 | — | 105,717 | |||||||||||||||
Non-current deferred tax liability | 22,098 | 408,148 | 13,043 | (289,064 | ) | 154,225 | ||||||||||||||
Other non-current liabilities | 5,780 | 1,076 | 691 | — | 7,547 | |||||||||||||||
Stockholders’ equity | 1,954,768 | 1,496,781 | 614,056 | (2,110,837 | ) | 1,954,768 | ||||||||||||||
Total liabilities and stockholders’ equity | $ | 2,408,071 | $ | 2,272,795 | $ | 646,180 | $ | (2,392,417 | ) | $ | 2,934,629 | |||||||||
Unaudited Interim Condensed Consolidating Statements of Operations
Three Months Ended March 31, 2022 | ||||||||||||||||||||
Parent | Guarantors | Non- Guarantors | Eliminations | Consolidated | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Sales | $ | (4,770 | ) | $ | 191,269 | $ | — | $ | — | $ | 186,499 | |||||||||
Cost of sales | 1,050 | (106,822 | ) | — | — | (105,772 | ) | |||||||||||||
Depreciation, depletion and amortization | — | (35,298 | ) | — | — | (35,298 | ) | |||||||||||||
General and administrative | (4,393 | ) | (3,764 | ) | (137 | ) | — | (8,294 | ) | |||||||||||
Exploration and pre-development | (146 | ) | (10,646 | ) | (2,016 | ) | — | (12,808 | ) | |||||||||||
Fair value adjustments, net | 256 | 1,939 | 3,770 | — | 5,965 | |||||||||||||||
Equity in earnings of subsidiaries | 4,212 | — | — | (4,212 | ) | — | ||||||||||||||
Other income (expense) | 11,351 | (21,886 | ) | 798 | (10,771 | ) | (20,508 | ) | ||||||||||||
Income (loss) before income and mining taxes | 7,560 | 14,792 | 2,415 | (14,983 | ) | 9,784 | ||||||||||||||
Income and mining tax (provision) benefit | (3,407 | ) | (13,006 | ) | 11 | 10,771 | (5,631 | ) | ||||||||||||
Net income (loss) | 4,153 | 1,786 | 2,426 | (4,212 | ) | 4,153 | ||||||||||||||
Preferred stock dividends | (138 | ) | — | — | — | (138 | ) | |||||||||||||
Income (loss) applicable to common stockholders | 4,015 | 1,786 | 2,426 | (4,212 | ) | 4,015 | ||||||||||||||
Net income (loss) | 4,153 | 1,786 | 2,426 | (4,212 | ) | 4,153 | ||||||||||||||
Changes in comprehensive loss | (33,165 | ) | — | — | — | (33,165 | ) | |||||||||||||
Comprehensive (loss) income | $ | (29,012 | ) | $ | 1,786 | $ | 2,426 | $ | (4,212 | ) | $ | (29,012 | ) |
Three Months Ended September 30, 2022 | ||||||||||||||||||||
Parent | Guarantors | Non- Guarantors | Eliminations | Consolidated | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Revenues | $ | 1,640 | $ | 144,634 | $ | 65 | $ | — | $ | 146,339 | ||||||||||
Cost of sales | 204 | (105,031 | ) | (73 | ) | — | (104,900 | ) | ||||||||||||
Depreciation, depletion, amortization | — | (32,992 | ) | — | — | (32,992 | ) | |||||||||||||
General and administrative | (3,792 | ) | (5,664 | ) | (1,547 | ) | — | (11,003 | ) | |||||||||||
Exploration and pre-development | (292 | ) | (13,143 | ) | (1,693 | ) | — | (15,128 | ) | |||||||||||
Equity in earnings of subsidiaries | 2,871 | — | — | (2,871 | ) | — | ||||||||||||||
Other (expense) income | (32,300 | ) | 12,289 | (4,398 | ) | 9,040 | (15,369 | ) | ||||||||||||
Income (loss) before income taxes | (31,669 | ) | 93 | (7,646 | ) | 6,169 | (33,053 | ) | ||||||||||||
(Provision) benefit from income taxes | 8,142 | 10,424 | — | (9,039 | ) | 9,527 | ||||||||||||||
Net income (loss) | (23,527 | ) | 10,517 | (7,646 | ) | (2,870 | ) | (23,526 | ) | |||||||||||
Preferred stock dividends | (138 | ) | — | — | — | (138 | ) | |||||||||||||
Income (loss) applicable to common stockholders | $ | (23,665 | ) | $ | 10,517 | $ | (7,646 | ) | $ | (2,870 | ) | $ | (23,664 | ) | ||||||
Net income (loss) | (23,527 | ) | 10,517 | (7,646 | ) | (2,870 | ) | (23,526 | ) | |||||||||||
Changes in comprehensive income (loss) | (12,692 | ) | — | — | — | (12,692 | ) | |||||||||||||
Comprehensive income (loss) | $ | (36,219 | ) | $ | 10,517 | $ | (7,646 | ) | $ | (2,870 | ) | $ | (36,218 | ) | ||||||
Nine Months Ended September 30, 2022 | ||||||||||||||||||||
Parent | Guarantors | Non- Guarantors | Eliminations | Consolidated | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Revenues | $ | 8,193 | $ | 515,822 | $ | 65 | $ | — | $ | 524,080 | ||||||||||
Cost of sales | 2,000 | (328,506 | ) | (73 | ) | — | (326,579 | ) | ||||||||||||
Depreciation, depletion, amortization | — | (106,362 | ) | — | — | (106,362 | ) | |||||||||||||
General and administrative | (12,682 | ) | (14,464 | ) | (1,843 | ) | — | (28,989 | ) | |||||||||||
Exploration and pre-development | (586 | ) | (32,489 | ) | (6,061 | ) | — | (39,136 | ) | |||||||||||
Equity in earnings of subsidiaries | (5,476 | ) | — | — | 5,476 | — | ||||||||||||||
Other expense | (25,483 | ) | (13,577 | ) | (11,653 | ) | (8,839 | ) | (59,552 | ) | ||||||||||
Income (loss) before income taxes | (34,034 | ) | 20,424 | (19,565 | ) | (3,363 | ) | (36,538 | ) | |||||||||||
(Provision) benefit from income taxes | 1,137 | (6,345 | ) | 11 | 8,839 | 3,642 | ||||||||||||||
Net income (loss) | (32,897 | ) | 14,079 | (19,554 | ) | 5,476 | (32,896 | ) | ||||||||||||
Preferred stock dividends | (414 | ) | — | — | — | (414 | ) | |||||||||||||
Income (loss) applicable to common stockholders | $ | (33,311 | ) | $ | 14,079 | $ | (19,554 | ) | $ | 5,476 | $ | (33,310 | ) | |||||||
Net income (loss) | (32,897 | ) | 14,079 | (19,554 | ) | 5,476 | (32,896 | ) | ||||||||||||
Changes in comprehensive income (loss) | 19,491 | — | — | — | 19,491 | |||||||||||||||
Comprehensive income (loss) | $ | (13,406 | ) | $ | 14,079 | $ | (19,554 | ) | $ | 5,476 | $ | (13,405 | ) | |||||||
Three Months Ended March 31, 2022 | ||||||||||||||||||||
Parent | Guarantors | Non- Guarantors | Eliminations | Consolidated | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Cash flows from operating activities | $ | 1,891 | $ | 30,240 | $ | 18,489 | $ | (12,711 | ) | $ | 37,909 | |||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Additions to properties, plants, equipment and mineral interests | — | (21,476 | ) | (2 | ) | (21,478 | ) | |||||||||||||
Other investing activities, net | (4,213 | ) | (2,173 | ) | (5,591 | ) | 4,213 | (7,764 | ) | |||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Dividends paid to stockholders | (3,509 | ) | — | — | (3,509 | ) | ||||||||||||||
Payments on debt | — | (1,695 | ) | — | (1,695 | ) | ||||||||||||||
Other financing activity | (5,240 | ) | 10,139 | (15,372 | ) | 8,498 | (1,975 | ) | ||||||||||||
Effect of exchange rate changes on cash | — | 509 | 10 | — | 519 | |||||||||||||||
Changes in cash, cash equivalents and restricted cash and cash equivalents | (11,071 | ) | 15,544 | (2,466 | ) | — | 2,007 | |||||||||||||
Beginning cash, cash equivalents and restricted cash and cash equivalents | 175,108 | 15,135 | 20,820 | — | 211,063 | |||||||||||||||
Ending cash, cash equivalents and restricted cash and cash equivalents | $ | 164,037 | $ | 30,679 | $ | 18,354 | $ | — | $ | 213,070 |
Item 3.Quantitative and Qualitative Disclosures About Market Risk
Nine Months Ended September 30, 2022 | ||||||||||||||||||||
Parent | Guarantors | Non- Guarantors | Eliminations | Consolidated | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Cash flows from operating activities | $ | 287,919 | $ | 145,834 | $ | (153,190 | ) | $ | (226,793 | ) | $ | 53,770 | ||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Additions to properties, plants, and equipment | — | (90,138 | ) | (3,099 | ) | — | (93,237 | ) | ||||||||||||
Acquisition, net | 8,952 | | — | | | 8,952 | | |||||||||||||
Other investing activities, net | (573,131 | ) | (1,880 | ) | (16,525 | ) | 548,130 | (43,406 | ) | |||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Dividends paid to stockholders | (10,549 | ) | — | — | — | (10,549 | ) | |||||||||||||
Issuance of debt | 25,000 | — | — | 25,000 | ||||||||||||||||
Payments on debt | — | (5,222 | ) | — | — | (5,222 | ) | |||||||||||||
Other financing activity | 187,036 | (37,653 | ) | 172,302 | (321,337 | ) | 348 | |||||||||||||
Effect of exchange rate changes on cash | — | 548 | (256 | ) | — | (804 | ) | |||||||||||||
Changes in cash, cash equivalents and restricted cash | (74,773 | ) | 10,393 | (768 | ) | (65,148 | ) | |||||||||||||
Beginning cash, cash equivalents and restricted cash | 175,108 | 15,135 | 20,820 | — | 211,063 | |||||||||||||||
Ending cash, cash equivalents and restricted cash | $ | 100,335 | $ | 25,528 | $ | 20,052 | $ | — | $ | 145,915 | ||||||||||
Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
Metals Prices
Changes in the market prices of silver, gold, lead and zinc can significantly affect our profitability and cash flow. Metals prices can and often do fluctuate widely and are affected by numerous factors beyond our control (see 10-K ).
We do not hedge the remeasurement of monetary assets and liabilities. We do hedge some of our operating and capital costs denominated in foreign currency.
Item 4.Controls and Procedures
An evaluation was performed under the supervision and with the participation of our management, including the Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), of the effectiveness of the design and operation of our disclosure controls and procedures as required by Securities Exchange Act Rules
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Item 1A - Risk Factors
Item 4. | Mine Safety Disclosures |
Hecla Mining Company and Wholly Owned Subsidiaries
Form 10-Q - March 31, 2022
Index to Exhibits
| ||
95 | Mine safety information listed in Section 1503 of the Dodd-Frank Act. * | |
101.INS | Inline XBRL Instance Document | |
101.SCH | Inline XBRL Taxonomy Extension Schema.** | |
101.CAL | Inline XBRL Taxonomy Extension Calculation.** | |
101.DEF | Inline XBRL Taxonomy Extension Definition.** | |
101.LAB | Inline XBRL Taxonomy Extension Labels.** | |
101.PRE | Inline XBRL Taxonomy Extension Presentation.** | |
104 | Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
* | Filed herewith. |
___________________
* Filed herewith.
HECLA MINING COMPANY (Registrant) | ||||||
Date: |
| |||||
November 9, 2022 | By: | |||||
|
|
| /s/ Phillips S. Baker, Jr. |
Phillips S. Baker, Jr., President, | ||||||
Chief Executive Officer and Director | ||||||
Date: | November 9, 2022 | |||||
By: |
|
| /s/ Russell D. Lawlar |
Russell D. Lawlar, Senior Vice President, | ||||||
Chief Financial Officer |