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 |
State or Other Jurisdiction of Incorporation or Organization |
I.R.S. Employer Identification No. | |
Address of Principal Executive Offices |
Zip Code |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
☒ | Accelerated filer | ☐ | ||||
Non-accelerated filer |
☐ | Smaller reporting company | ||||
Emerging growth company |
Class |
Shares Outstanding November 4, 2022 | |
Common stock, par value $0.25 per share |
Page | ||||
4 | ||||
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 | Nine Months Ended | |||||||||||||||
September 30, 2022 |
September 30, 2021 |
September 30, 2022 |
September 30, 2021 |
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Sales |
$ | |
$ | |
$ | |
$ | |
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Cost of sales and other direct production costs |
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Depreciation, depletion and amortization |
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Total cost of sales |
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Gross profit |
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Other operating expenses: |
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General and administrative |
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Exploration and pre-development |
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Care and maintenance costs |
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Provision for closed operations and environmental matters |
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Other operating expense |
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Total other operating expenses |
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(Loss) income from operations |
( |
) | ( |
) | ( |
) | ||||||||||
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|||||||||
Other income (expense): |
||||||||||||||||
Interest expense |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Fair value adjustments, net |
( |
) | ( |
) | ( |
) | ||||||||||
Net foreign exchange gain |
||||||||||||||||
Other income (expense) |
( |
) | ||||||||||||||
|
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|
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|||||||||
Total other (expense) income |
( |
) | ( |
) | ( |
) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
(Loss) income before income and mining taxes |
( |
) | ( |
) | ( |
) | ||||||||||
Income and mining tax benefit |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net (loss) income |
( |
) | ( |
) | ( |
) | ||||||||||
Preferred stock dividends |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
(Loss) income applicable to common stockholders |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ||||||
|
|
|
|
|
|
|
|
|||||||||
Comprehensive income (loss): |
||||||||||||||||
Net (loss) income |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ||||||
Change in fair value of derivative contracts designated as hedge transactions |
( |
) | ( |
) | ( |
) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Comprehensive (loss) income |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ||||||
|
|
|
|
|
|
|
|
|||||||||
Basic (loss) income per common share after preferred dividends |
$ | ( |
) | $ | $ | ( |
) | $ | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Diluted (loss) income per common share after preferred dividends |
$ | ( |
) | $ | $ | ( |
) | $ | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Weighted average number of common shares outstanding – basic |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Weighted average number of common shares outstanding – diluted |
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|
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|
|
|
|||||||||
Cash dividends declared per common share |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
Nine Months Ended | ||||||||
September 30, 2022 |
September 30, 2021 |
|||||||
Operating activities: |
||||||||
Net (loss) income |
$ | ( |
) | $ | ||||
Non-cash elements included in net (loss) income: |
||||||||
Depreciation, depletion and amortization |
||||||||
Write-down of inventory |
||||||||
Fair value adjustments, net |
( |
) | ||||||
Provision for reclamation and closure costs |
||||||||
Stock compensation |
||||||||
Deferred income taxes |
( |
) | ( |
) | ||||
Foreign exchange (gain) loss |
( |
) | ||||||
Other non-cash items, net |
||||||||
Change in assets and liabilities: |
||||||||
Accounts receivable |
( |
) | ||||||
Inventories |
( |
) | ||||||
Other current and non-current assets |
( |
) | ||||||
Accounts payable, accrued and other current liabilities |
( |
) | ( |
) | ||||
Accrued payroll and related benefits |
( |
) | ||||||
Accrued taxes |
( |
) | ||||||
Accrued reclamation and closure costs and other non-current liabilities |
( |
) | ||||||
|
|
|
|
|||||
Cash provided by operating activities |
||||||||
Investing activities: |
||||||||
Additions to properties, plants, equipment and mineral interests |
( |
) | ( |
) | ||||
Change in restricted cash |
||||||||
Proceeds from sale of investments |
||||||||
Proceeds from disposition of properties, plants and equipment |
||||||||
Purchases of investments |
( |
) | ||||||
Acquisitions, net |
||||||||
Pre-acquisition advance to Alexco |
( |
) | ||||||
Purchase of carbon credits |
( |
) | ||||||
|
|
|
|
|||||
Net cash used in investing activities |
( |
) | ( |
) | ||||
Financing activities: |
||||||||
Proceeds from sale of common stock, net |
||||||||
Acquisition of treasury stock |
( |
) | ( |
) | ||||
Dividends paid to common and preferred stockholders |
( |
) | ( |
) | ||||
Credit facility fees paid |
( |
) | ( |
) | ||||
Draw on revolving credit facility |
— |
|||||||
Repayments of finance leases |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Net cash provided by (used in) financing activities |
( |
) | ||||||
Effect of exchange rates on cash |
( |
) | ( |
) | ||||
Net (decrease) increase in cash, cash equivalents and restricted cash |
( |
) | ||||||
Cash, cash equivalents and restricted cash at beginning of period |
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|
|
|||||
Cash, cash equivalents and restricted cash at end of period |
$ | |
$ | |
||||
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|||||
Supplemental disclosure of cash flow information: |
||||||||
Cash paid for interest |
$ | $ | ||||||
Cash paid for income and mining taxes, net |
$ | $ | ||||||
Significant non-cash investing and financing activities: |
||||||||
Addition of finance lease obligations and right-of-use |
$ | $ | ||||||
Common stock issued to Alexco Resource Corp. shareholders |
$ | $ | ||||||
Common stock issued to settle acquired silver stream |
$ | $ | ||||||
Common stock issued to pension plans |
$ | $ |
September 30, 2022 |
December 31, 2021 |
|||||||
ASSETS | | |||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | $ | ||||||
Accounts receivable: |
||||||||
Trade |
||||||||
Other, net |
||||||||
Inventories: |
||||||||
Concentrates, doré, and stockpiled ore |
||||||||
Materials and supplies |
||||||||
Derivatives assets |
||||||||
Other current assets |
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|
|||||
Total current assets |
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Investments |
||||||||
Restricted cash |
||||||||
Properties, plants, equipment and mineral interests, net |
||||||||
Operating lease right-of-use |
||||||||
Deferred income taxes |
||||||||
Derivatives assets |
||||||||
Other non-current assets |
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|
|||||
Total assets |
$ | $ | ||||||
|
|
|
|
|||||
LIABILITIES | | |||||||
Current liabilities: |
||||||||
Accounts payable and accrued liabilities |
$ | $ | ||||||
Accrued payroll and related benefits |
||||||||
Accrued taxes |
||||||||
Finance and operating leases |
||||||||
Accrued interest |
||||||||
Derivatives liabilities |
||||||||
Other current liabilities |
||||||||
Accrued reclamation and closure costs |
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|
|||||
Total current liabilities |
||||||||
Finance and operating leases |
||||||||
Accrued reclamation and closure costs |
||||||||
Long-term debt |
||||||||
Deferred tax liability |
||||||||
Derivatives liabilities |
||||||||
Other non-current liabilities |
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|
|||||
Total liabilities |
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|
|||||
Commitments and contingencies ( Notes 4 7 8, 10 |
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STOCKHOLDERS’ EQUITY | | |||||||
Preferred stock, |
||||||||
Series B preferred stock, preference – $ |
||||||||
Common stock, 2022 – |
||||||||
Capital surplus |
||||||||
Accumulated deficit |
( |
) | ( |
) | ||||
Accumulated other comprehensive income (loss) |
( |
) | ( |
) | ||||
Less treasury stock, at cost; September 30, 2022 – |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Total stockholders’ equity |
||||||||
|
|
|
|
|||||
Total liabilities and stockholders’ equity |
$ | |
$ | |
||||
|
|
|
|
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 |
$ | $ | $ | $ | ( |
) | $ | $ | ( |
) | $ | |||||||||||||||||
Net loss |
( |
) | ( |
) | ||||||||||||||||||||||||
Common stock issued to Alexco Resource Corp. shareholders ( |
||||||||||||||||||||||||||||
Common stock issued to settle the acquired silver stream ( |
||||||||||||||||||||||||||||
Common stock issued for 401(k) match ( shares) |
||||||||||||||||||||||||||||
Common stock issued under ATM program, net ( |
||||||||||||||||||||||||||||
Common stock dividends declared ( common share) |
( |
) | ( |
) | ||||||||||||||||||||||||
Series B Preferred Stock dividends declared ( per share) |
( |
) | ( |
) | ||||||||||||||||||||||||
Restricted stock units granted |
|
|||||||||||||||||||||||||||
Other comprehensive loss |
( |
) | ( |
) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balances, September 30, 2022 |
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | |||||||||||||||
Net loss |
( |
) | ( |
) | ||||||||||||||||||||||||
Restricted stock units granted |
||||||||||||||||||||||||||||
Common stock dividends declared ( |
( |
) | ( |
) | ||||||||||||||||||||||||
Series B Preferred Stock dividends declared ( |
( |
) | ( |
) | ||||||||||||||||||||||||
Common stock issued for 401(k) match ( |
||||||||||||||||||||||||||||
Common stock issued to pension plans ( |
||||||||||||||||||||||||||||
Other comprehensive loss |
( |
) | ( |
) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balances, September 30, 2021 |
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | |||||||||||||||
Net loss |
( |
) | ( |
) | ||||||||||||||||||||||||
Restricted stock units granted |
||||||||||||||||||||||||||||
Restricted stock units and performance stock units distributed ( |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
Common stock issued for 401(k) match ( shares) |
||||||||||||||||||||||||||||
Common stock issued to directors ( |
||||||||||||||||||||||||||||
Common stock issued to pension plans ( |
||||||||||||||||||||||||||||
Common stock issued to Alexco Resource Corp. shareholders ( |
||||||||||||||||||||||||||||
Common stock issued to settle the acquired silver stream ( |
||||||||||||||||||||||||||||
Common stock issued under ATM program, net ( |
—— |
|||||||||||||||||||||||||||
Common stock dividends declared ( |
( |
) | ( |
) | ||||||||||||||||||||||||
Series B Preferred Stock dividends declared ($ per share) |
( |
) | ( |
) | ||||||||||||||||||||||||
Other comprehensive income |
||||||||||||||||||||||||||||
Balances, September 30, 2022 |
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | |||||||||||||||
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 |
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | |||||||||||||||
Net income |
||||||||||||||||||||||||||||
Restricted stock units granted |
||||||||||||||||||||||||||||
Restricted stock units distributed ( |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
Common stock dividends declared ( |
( |
) | ( |
) | ||||||||||||||||||||||||
Series B Preferred Stock dividends declared ($ per share) |
( |
) | ( |
) | ||||||||||||||||||||||||
Common stock issued for 401(k) match ( shares) |
||||||||||||||||||||||||||||
Common stock issued to pension plans ( |
||||||||||||||||||||||||||||
Common stock issued to directors ( |
||||||||||||||||||||||||||||
Other comprehensive loss |
( |
) | ( |
) | ||||||||||||||||||||||||
Balances, September 30, 2021 |
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | |||||||||||||||
Note 1. |
Basis of Preparation of Financial Statements |
Note 2. |
Business Segments and Sales of Products |
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Net sales to unaffiliated customers: |
||||||||||||||||
Greens Creek |
$ | $ | $ | $ | ||||||||||||
Lucky Friday |
||||||||||||||||
Casa Berardi |
||||||||||||||||
Nevada Operations |
||||||||||||||||
Other |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | $ | $ | $ | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Income (loss) from operations: |
||||||||||||||||
Greens Creek |
$ | $ | $ | $ | ||||||||||||
Lucky Friday |
||||||||||||||||
Casa Berardi |
( |
) | ( |
) | ( |
) | ||||||||||
Nevada Operations |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Other |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | |||||||
|
|
|
|
|
|
|
|
September 30, 2022 |
December 31, 2021 |
|||||||
Identifiable assets: |
||||||||
Greens Creek |
$ | $ | ||||||
Lucky Friday |
||||||||
Casa Berardi |
||||||||
Nevada Operations |
||||||||
Other |
||||||||
|
|
|
|
|||||
$ | $ | |||||||
|
|
|
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Silver |
$ | $ | $ | $ | ||||||||||||
Gold |
||||||||||||||||
Lead |
||||||||||||||||
Zinc |
||||||||||||||||
Less: Smelter and refining charges |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | $ | $ | $ | |||||||||||||
|
|
|
|
|
|
|
|
Note 3. |
Income and Mining Taxes |
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
2022 |
2021 |
2022 |
2021 |
|||||||||||||
Current: | ||||||||||||||||
Domestic |
$ | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||||
Foreign |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total current income and mining tax provision |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Deferred: | ||||||||||||||||
Domestic |
||||||||||||||||
Foreign |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total deferred income and mining tax benefit |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total income and mining tax benefit (provision) |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
Note 4. |
Employee Benefit Plans |
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Service cost |
$ | $ | $ | $ | ||||||||||||
Interest cost |
||||||||||||||||
Expected return on plan assets |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Amortization of prior service cost |
||||||||||||||||
Amortization of net loss |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net periodic pension cost |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
Note 5. |
(Loss) Income Per Common Share |
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
2022 |
2021 |
2022 |
2021 |
|||||||||||||
Numerator |
||||||||||||||||
Net (loss) income |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ||||||
Preferred stock dividends |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net (loss) income applicable to common shares |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ||||||
|
|
|
|
|
|
|
|
|||||||||
Denominator |
||||||||||||||||
Basic weighted average common shares |
||||||||||||||||
Dilutive restricted stock units, warrants and deferred shares |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Diluted weighted average common shares |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Basic (loss) income per common share |
$ |
( |
) |
$ |
$ |
( |
) |
$ |
||||||||
Diluted (loss) income per common share |
$ |
( |
) |
$ |
$ |
( |
) |
$ |
Note 6. |
Stockholders’ Equity |
Grant date | Award type | Number granted | Grant date fair value | |||
June 21, 2022 | Restricted stock | $ | ||||
June 21, 2022 | Performance based | $ | ||||
June 28, 2022 | Directors retainer | $ | ||||
September 30, 2022 | Restricted stock | $ |
Quarter | Realized Silver Price | Silver-linked component |
Minimum component | Total dividend per share | ||||
First |
$ |
$ |
$ |
$ | ||||
Second |
$ |
$ |
$ |
$ |
Note 7. |
Debt, Credit Facility and Leases |
September 30, 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 September 30, |
Senior Notes |
IQ Notes |
Finance Leases |
Operating Leases |
||||||||||||
2023 |
$ | $ | $ | $ | ||||||||||||
2024 |
||||||||||||||||
2025 |
||||||||||||||||
2026 |
||||||||||||||||
2027 |
— | |||||||||||||||
Thereafter |
— | — | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
Note 8. |
Derivative Instruments |
September 30, |
December 31, |
|||||||
Balance sheet line item: |
2022 |
2021 |
||||||
Current derivatives assets |
$ | |
$ | |
||||
Non-current derivatives assets |
||||||||
Current derivatives liabilities |
||||||||
Non-current derivatives liabilities |
• | 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. |
September 30, 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 |
N/A | N/A | $ | $ | ||||||||||||||||||||||||||||
2023 settlements |
N/A | N/A | $ | $ | ||||||||||||||||||||||||||||
2024 settlements |
N/A | N/A | $ | $ | ||||||||||||||||||||||||||||
2025 settlements |
N/A | N/A | $ | N/A |
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 |
N/A | N/A | $ | $ | ||||||||||||||||||||||||||||
2023 settlements |
N/A | N/A | $ | $ |
September 30, 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) |
||||||||||||||||||
Current derivatives assets |
$ | $ | |
$ | $ | |
$ | $ | ||||||||||||||||
Non-current derivatives assets |
$ | |
$ | $ | $ | $ | ||||||||||||||||||
Current derivatives liabilities |
( |
) | ( |
) | ||||||||||||||||||||
Non-current derivatives liabilities |
( |
) | ( |
) |
Note 9. |
Fair Value Measurement |
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
2022 |
2021 |
2022 |
2021 |
|||||||||||||
(Loss) gain on derivative contracts |
$ | $ | |
$ | ( |
$ | ( |
) | ||||||||
Unrealized loss on investments in equity securities |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
(Loss) gain on disposition or exchange of investments |
( |
) | ||||||||||||||
Total fair value adjustments, net |
$ | ( |
) | $ | $ | ( |
) | $ | ( |
) | ||||||
Description |
Balance at September 30, 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 |
Level 1 | |||||||||||
Trade accounts receivable: |
||||||||||||
Receivables from provisional concentrate sales |
Level 2 | |||||||||||
Restricted cash balances: |
||||||||||||
Certificates of deposit and other deposits |
Level 1 | |||||||||||
Derivative contracts – current and non-current derivatives assets: |
||||||||||||
Foreign exchange contracts |
Level 2 | |||||||||||
Metal forward and put option contracts |
Level 2 | |||||||||||
Total assets |
$ | $ | ||||||||||
Liabilities: |
||||||||||||
Derivative contracts – current derivatives liabilities and other non-current liabilities: |
||||||||||||
Foreign exchange contracts |
$ | $ | Level 2 | |||||||||
Metal forward and put option contracts |
Level 2 | |||||||||||
Total liabilities |
$ | $ | ||||||||||
Note 10. |
Commitments, Contingencies and Obligations |
Note |
11. Developments in Accounting Pronouncements |
• | Produced 3.6 million ounces of silver and 44,747 ounces of gold. See Consolidated Results of Operations by-product credits, per silver and gold ounce for the three-month periods ended September 30, 2022 and 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 $146.3 million. |
• | Made capital expenditures (excluding lease additions and other non-cash items) of approximately $37.4 million, including $7.0 million at Greens Creek, $16.1 million at Lucky Friday, $10.8 million at Casa Berardi. |
• | Returned $3.5 million to our stockholders through payment of dividends. |
• | Spent $15.1 million on exploration and pre-development activities. |
• | Produced 10.5 million ounces of silver and 132,108 ounces of gold. See Consolidated Results of Operations by-product credits, per silver and gold ounce for the nine-month periods ended September 30, 2022 and 2021. |
• | Continued our trend of strong safety performance, as our All Injury Frequency Rate (“AIFR”) for the year to date was 1.3, 38% below the U.S. national average for MSHA’s “metal and nonmetal” category and 10% below 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 $524.1 million. |
• | Generated $53.8 million in net cash provided by operating activities. See the Financial Liquidity and Capital Resources |
• | Made capital expenditures (excluding lease additions and other non-cash items) of approximately $93.2 million, including $24.7 million at Greens Creek, $37.3 million at Lucky Friday, $26.7 million at Casa Berardi, $3.8 million at Corporate and Other. |
• | Returned $10.5 million to our stockholders through payment of dividends. |
• | Spent $39.1 million on exploration and pre-development activities. |
• | executing value enhancing transactions, such as with the recently consummated Alexco acquisition; |
• | advancing the development of the Keno Hill mine with the anticipation of commencement of production before the end of 2023; |
• | 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 |
Juneau; North Idaho’s Silver Valley in the historic Coeur d’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 our Montana assets; and |
• | continuing to seek opportunities to acquire and invest in mining and exploration properties and companies. |
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
(in thousands) | 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 charges |
(13,023 | ) | (11,669 | ) | (38,543 | ) | (38,189 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Sales of products |
$ | 146,274 | $ | 193,560 | $ | 524,015 | $ | 622,395 | ||||||||
|
|
|
|
|
|
|
|
(in thousands) | Silver |
Gold |
Base metals |
Less: smelter and refining charges |
Total sales of products |
|||||||||||||||
Three months ended September 30, 2021 |
$ | 61,890 | $ | 94,984 | $ | 48,355 | $ | (11,669 | ) | $ | 193,560 | |||||||||
Variances - 2022 versus 2021: |
||||||||||||||||||||
Price |
(13,459 | ) | (3,125 | ) | (3,637 | ) | (1,475 | ) | (21,696 | ) | ||||||||||
Volume |
(2,134 | ) | (22,570 | ) | (634 | ) | 162 | (25,176 | ) | |||||||||||
Smelter terms |
(373 | ) | — | — | (41 | ) | (414 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Three months ended September 30, 2022 |
$ | 45,924 | $ | 69,289 | $ | 44,084 | $ | (13,023 | ) | $ | 146,274 | |||||||||
|
|
|
|
|
|
|
|
|
|
(in thousands) | Silver |
Gold |
Base metals |
Less: smelter and refining charges |
Total sales of products |
|||||||||||||||
Nine months ended September 30, 2021 |
$ | 232,414 | $ | 282,471 | $ | 145,699 | $ | (38,189 | ) | $ | 622,395 | |||||||||
Variances - 2022 versus 2021: |
||||||||||||||||||||
Price |
(37,682 | ) | 2,557 | 7,748 | (3,381 | ) | (30,758 | ) | ||||||||||||
Volume |
(12,335 | ) | (56,468 | ) | (1,670 | ) | 1,567 | (68,906 | ) | |||||||||||
Smelter terms |
(91 | ) | (85 | ) | — | 1,460 | 1,284 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Nine months ended September 30, 2022 |
$ | 182,306 | $ | 228,475 | $ | 151,777 | $ | (38,543 | ) | $ | 524,015 | |||||||||
|
|
|
|
|
|
|
|
|
|
• | Lower 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 |
• | Lower quantities of all metals sold in the third quarter and first nine months of 2022 compared to 2021 (except for lead in the nine months and zinc in the three months ended September 30, 2022, respectively, due to higher production at Lucky Friday during the first nine months of 2022), primarily due to the decision to defer a silver concentrate shipment at Greens Creek to October 2022 to ensure adequate concentrate volumes for cost-effective shipping, and the non-recurrence of Nevada refractory ore processing at a third-party facility in 2021. See The Greens Creek Segment, The Lucky Friday Segment, The Casa Berardi Segment The Nevada Operations Segment |
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||
Silver - |
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 | ||||||||||||||||
Gold - |
Ounces produced | 44,747 | 42,207 | 132,173 | 153,350 | |||||||||||||||
Payable ounces sold | 40,443 | 53,000 | 125,721 | 157,454 | ||||||||||||||||
Lead - |
Tons produced | 11,600 | 9,904 | 35,794 | 32,148 | |||||||||||||||
Payable tons sold | 8,049 | 8,835 | 28,788 | 28,166 | ||||||||||||||||
Zinc - |
Tons produced | 15,859 | 15,546 | 47,571 | 48,864 | |||||||||||||||
Payable tons sold | 11,523 | 11,174 | 32,328 | 33,344 |
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 in Reconciliation of Total Cost of Sales (GAAP) to Cash Cost, Before By-product Credits and Cash Cost, After By-product Credits (non-GAAP) and All-In Sustaining Cost, Before By-product Credits and All-In Sustaining Cost, After By-product Credits (non-GAAP) |
(2) | The calculation of AISC, After By-product Credits, Per Ounce for our consolidated silver properties includes corporate costs for general and administrative expense and sustaining exploration and capital costs. |
• | silver has historically accounted for a higher proportion of revenue than any other metal and is expected to do so in the future; |
• | we have historically presented these units as a primary silver producer, based on the original analysis that justified putting the project into production, and believe that consistency in disclosure is important to our investors regardless of the relationships of metals prices and production from year to year; |
• | metallurgical treatment maximizes silver recovery; |
• | the Greens Creek and Lucky Friday deposits are massive sulfide deposits containing an unusually high proportion of silver; and |
• | in most of their working areas, Greens Creek and Lucky Friday utilize selective mining methods in which silver is the metal targeted for highest recovery. |
• | General and administrative costs increased by $2.1 million primarily due to the impact of the Alexco acquisition closed on September 7, 2022 and compensation adjustments effective July 1, 2022. |
• | Fair value adjustments, net were losses of $4.2 million versus a gain of $9.3 million in 2021 primarily due to the accounting for our base metals contracts as accounting hedges effective November 1, 2021, which resulted in unrealized gains/losses on these contracts being deferred on the balance sheet, versus them being recognized in the statement of operations in the 2021 comparable quarter (see Notes 8 and 9 Notes to Condensed Consolidated Financial Statements (Unaudited) |
• | Exploration and pre-development decreased by $2.0 million primarily due to lower expenditures at the Hatter Graben project in Nevada. |
• | Provision for closed operations and environmental matters decreased by $5.8 million primarily due to the settlement in 2021 of a lawsuit for $6.5 million related to a 1989 agreement entered into by our subsidiary, CoCa Mines, Inc. and its subsidiary, Creede Resources, Inc. |
• | Other operating expense decreased by $2.4 million primarily due to the receipt of $2.5 million in insurance proceeds related to a coverage lawsuit received during September 2022 and the completion of projects to identify and implement potential operational improvements at our operating sites. |
• | Net foreign exchange gains increased by $1.7 million reflecting the continued depreciation of the CAD against the USD in 2022. The change is primarily related to the impact of changes in the CAD-to-USD |
• | Exploration and pre-development expense increased by $4.1 million reflecting increased exploration spending across the Company’s exploration portfolio primarily at San Sebastian, Casa Berardi, Greens Creek and the Nevada Operations. Pre-development expense was for the development of a decline to the Hatter Graben area at the Hollister mine in Nevada. |
• | Fair value adjustments, net losses increased by $4.1 million due to unrealized losses on our equity securities portfolio increasing by $7.6 million offset by a lower loss of $4.7 million on our derivative contracts primarily due to the accounting for our base metals contracts as accounting hedges effective November 1, 2021, which resulted in unrealized gains/losses on these contracts being deferred on the balance sheet, versus them being recognized in the income statement in 2021 the comparable quarter (see Notes 8 and 9 Notes to Condensed Consolidated Financial Statements (Unaudited) |
• | Net foreign exchange gains increased by $8.1 million reflecting the continued depreciation of the CAD against the USD in 2022. The change is primarily related to the impact of changes in the CAD-to-USD |
• | Provision for closed operations and environmental matters decreased by $8.1 million primarily due to the settlement in 2021 of a lawsuit for $6.5 million related to a 1989 agreement entered into by our subsidiary, CoCa Mines, Inc. and its subsidiary, Creede Resources, Inc and an increase in the estimated costs accrual for the Johnny M. site in New Mexico of $2.9 million in 2021(see Note 10 Notes to Condensed Consolidated Financial Statements (Unaudited) |
• | Other operating expense decreased by $5.3 million primarily due to the receipt of $4.2 million in insurance proceeds related to a coverage lawsuit received during June and September 2022 and the completion of projects to identify and implement potential operation improvements at our operating sites. |
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 in Reconciliation of Total Cost of Sales (GAAP) to Cash Cost, Before By-product Credits and Cash Cost, After By-product Credits (non-GAAP) and All-In Sustaining Cost, Before By-product Credits and All-In Sustaining Cost, After By-product Credits (non-GAAP) |
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 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 | ||||||||
|
|
|
|
|
|
|
|
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 in Reconciliation of Total Cost of Sales (GAAP) to Cash Cost, Before By-product Credits and Cash Cost, After By-product Credits (non-GAAP) and All-In Sustaining Cost, Before By-product Credits and All-In Sustaining Cost, After By-product Credits (non-GAAP) |
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 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 | |||||||||
|
|
|
|
|
|
|
|
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 in Reconciliation of Total Cost of Sales (GAAP) to Cash Cost, Before By-product Credits and Cash Cost, After By-product Credits (non-GAAP) and All-In Sustaining Cost, Before By-product Credits and All-In Sustaining Cost, After By-product Credits (non-GAAP) |
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 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 |
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 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 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 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 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 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, before by-product revenues earned from all metals other than the primary metal produced at each operation. AISC, Before By-product Credits also includes on-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. |
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 |
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 | ||||
|
|
|
|
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 |
) |
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 commitments of approximately $9.0 million at Greens Creek, $1.2 million at Casa Berardi, $20.4 million at Lucky Friday, $2.6 million at the Nevada Operations and $0.3 at Keno Hill. |
(2) | The New Credit Agreement provides for a $150 million revolving credit facility, under which $25 million was drawn as of September 30, 2022 and repaid October 4, 2022. We had $7.8 million in letters of credit outstanding as of September 30, 2022. The amounts in the table above assume no additional amounts will be drawn in future periods, and include only the standby fee on the current undrawn balance. For more information on our credit facility, see Note 7 Notes to Condensed Consolidated Financial Statements (Unaudited) |
(3) | Includes scheduled finance lease payments of $14.2 million, $3.4 million, $1.4 million, $0.049 million (including interest) and $3.3 million, respectively, for equipment at our Greens Creek, Lucky Friday, Casa Berardi, Nevada Operations and Keno Hill. |
(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 year. See 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 year. See Note 7 Notes to Condensed Consolidated Financial Statements (Unaudited) |
• | Investments in subsidiaries |
• | Capital contributions paid-in capital. In consolidation, investments in subsidiaries and related additional paid-in capital are eliminated. |
• | Debt. |
• | Dividends. |
• | Deferred taxes Non-current deferred tax asset balances are included in other non-current assets on the consolidating balance sheets and make up a large portion of that item, particularly for the guarantor balances. |
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 | |||||||||
|
|
|
|
|
|
|
|
|
|
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 | ) | |||||||
|
|
|
|
|
|
|
|
|
|
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 |
Item 4. |
Controls and Procedures |
Item 1. |
Legal Proceedings |
Item 1A. |
Risk Factors |
Item 4. |
Mine Safety Disclosures |
* | 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 |