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Note 2 - Revision of Previously Issued Financial Statements for Immaterial Misstatements
 12 Months Ended
Dec. 31, 2018
Notes to Financial Statements  
Accounting Changes and Error Corrections [Text Block]
Note
2.
Revision of Previously Issued Financial Statements for Immaterial Misstatements
 
In the
third
quarter of
2018,
we determined accumulated DDA on our consolidated balance sheets and DDA expense on our consolidated statements of operations and comprehensive (loss) income related to Casa Berardi, a business unit within our Hecla Quebec Inc. subsidiary, were understated for the periods from
June 1, 2013
through
June 30, 2018
as a result of errors in calculation from the date of acquisition of Casa Berardi as noted below:
 
 
i.
understatement of DDA by approximately
$35.5
million in the aggregate over
5
1/2
years. The error in calculation resulted from the foreign exchange translation of accumulated DDA and DDA expense from Canadian dollars (“CAD”) to U.S. dollars (“USD”), which was incorrectly set up in the financial reporting system to use the average exchange rate for the respective reporting period, when the historical exchange rate should have been used. The CAD to USD exchange rate at
June 1, 2013
was
0.9646
and has subsequently weakened over the intervening periods, resulting in an understatement of accumulated DDA and DDA expense during the periods from
June 1, 2013
to
June 30, 2018.
 
 
ii.
overstatement of DDA of approximately
$14.2
million in the aggregate over
5
1/2
years related to the accelerated conversion of costs from the mineral interest asset, which represents the value of the undeveloped mineral interest and is
not
depletable, to the mineral properties asset, which represents the value of proven and probable reserves and is depletable. The error in calculation arose from the incorrect use of fair value information available on the per ounce value at the date of acquisition and resulted in the overstatement of the proven and probable reserves asset, which is subject to depletion, and an understatement of the undeveloped mineral interest asset, both of which are categories reported within properties, plants, equipment and mineral interests, net on the balance sheet. The overstatement of the conversions to the proven and probable reserves asset during the periods from
January 1, 2014
through
June 30, 2018
resulted in overstatements of accumulated DDA and DDA expense in each of these periods.
 
We assessed the materiality of the effect of the errors on our prior quarterly and annual financial statements, both quantitatively and qualitatively, in accordance with the SEC’s Staff Accounting Bulletin ("SAB")
No.
99,
“Materiality,” and SAB
No.
108,
“Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements,” and concluded the errors were
not
material to any of our previously issued financial statements. Consequently, we made the decision to correct these errors prospectively and revise our financial statements when the consolidated balance sheets, statements of operations and comprehensive income and cash flows for such prior periods are included in filings made after the
third
quarter of
2018,
including in this report (the "Revisions"). The Revisions had
no
net impact on our sales or net cash provided by operating activities for any period presented.
 
The following tables present a summary of the impact, by financial statement line item, of the Revisions as of and for the years ended
December 31, 2017
and
2016,
and as of
January 1, 2016:
 
   
As of and for the Year Ended December 31, 2017
  
(in thousands)
  
As Previously
Reported
    
Adjustment
    
As Revised
  
Condensed Consolidated Balance Sheet
  
 
 
 
  
 
 
 
  
 
 
 
Inventories: Concentrate, doré, and stockpiled ore
   $
28,455
     $
911
     $
29,366
  
Total current assets
    
320,325
      
911
      
321,236
  
Properties, plants, equipment and mineral interests, net
    
2,020,021
      
(20,710
)
    
1,999,311
  
Total assets
  
 
2,364,957
    
 
(19,799
)
  
 
2,345,158
  
Deferred tax liability
    
121,546
      
2,806
      
124,352
  
Total liabilities
    
881,075
      
2,806
      
883,881
  
Accumulated deficit
    
(195,484
)
    
(22,605
)
    
(218,089
)
Total shareholders' equity
    
1,483,882
      
(22,605
)
    
1,461,277
  
Total liabilities and shareholders' equity
  
 
2,364,957
    
 
(19,799
)
  
 
2,345,158
  
                         
Consolidated Statements of Operations and Comprehensive (Loss) Income
  
 
 
 
  
 
 
 
  
 
 
 
Depreciation, depletion and amortization
   $
116,062
     $
4,537
     $
120,599
  
Total cost of sales
    
420,789
      
4,537
      
425,326
  
Gross profit
    
156,986
      
(4,537
)
    
152,449
  
Income (loss) from operations
  
 
64,643
    
 
(4,537
)
  
 
60,106
  
Foreign exchange (loss) gain
    
(10,300
)
    
620
      
(9,680
)
Total other (expense) income
    
(68,283
)
    
620
      
(67,663
)
(Loss) income before income taxes
  
 
(3,640
)
  
 
(3,917
)
  
 
(7,557
)
Income tax (provision) benefit
    
(19,879
)
    
(1,084
)
    
(20,963
)
Net (loss) income
   $
(23,519
)
   $
(5,001
)
   $
(28,520
)
(Loss) income applicable to common shareholders
  
$
(24,071
)
  
$
(5,001
)
  
$
(29,072
)
Comprehensive income (loss)
    
(12,290
)
    
(5,001
)
    
(17,291
)
Basic (loss) income per common share after preferred dividends
  
$
(0.06
)
  
$
(0.01
)
  
$
(0.07
)
Diluted (loss) income per common share after preferred dividends
  
$
(0.06
)
  
$
(0.01
)
  
$
(0.07
)
                         
Condensed Consolidated Statements of Cash Flows
  
 
 
 
  
 
 
 
  
 
 
 
Net (loss) income
   $
(23,519
)
   $
(5,001
)
   $
(28,520
)
Depreciation, depletion and amortization
    
121,930
      
4,537
      
126,467
  
Foreign exchange loss (gain)
    
10,828
      
(620
)
    
10,208
  
Deferred income taxes
    
18,308
      
1,084
      
19,392
  
 
   
As of and for the Year Ended December 31, 2016
  
(in thousands)
  
As Previously
Reported
    
Adjustment
    
As Revised
  
Condensed Consolidated Balance Sheet
  
 
 
 
  
 
 
 
  
 
 
 
Accumulated deficit
   $
(167,437
)
   $
(17,604
)
   $
(185,041
)
Total shareholders' equity
    
1,479,844
      
(17,604
)
    
1,462,240
  
                         
Consolidated Statements of Operations and Comprehensive (Loss) Income
  
 
 
 
  
 
 
 
  
 
 
 
Depreciation, depletion and amortization
    
116,126
      
7,505
      
123,631
  
Total cost of sales
    
454,451
      
7,505
      
461,956
  
Gross profit
    
191,506
      
(7,505
)
    
184,001
  
Income (loss) from operations
  
 
116,944
    
 
(7,505
)
  
 
109,439
  
Foreign exchange (loss) gain
    
(2,926
)
    
189
      
(2,737
)
Total other (expense) income
    
(19,969
)
    
189
      
(19,780
)
(Loss) income before income taxes
  
 
96,975
    
 
(7,316
)
  
 
89,659
  
Income tax (provision) benefit
    
(27,428
)
    
(662
)
    
(28,090
)
Net (loss) income
   $
69,547
     $
(7,978
)
   $
61,569
  
(Loss) income applicable to common shareholders
  
$
68,995
    
$
(7,978
)
  
$
61,017
  
Comprehensive income (loss)
    
67,576
      
(7,978
)
    
59,598
  
Basic (loss) income per common share after preferred dividends
  
$
0.18
    
$
(0.02
)
  
$
0.16
  
Diluted (loss) income per common share after preferred dividends
  
$
0.18
    
$
(0.02
)
  
$
0.16
  
                         
Condensed Consolidated Statements of Cash Flows
  
 
 
 
  
 
 
 
  
 
 
 
Net (loss) income
   $
69,547
     $
(7,978
)
   $
61,569
  
Depreciation, depletion and amortization
    
117,413
      
7,505
      
124,918
  
Foreign exchange loss (gain)
    
4,649
      
(189
)
    
4,460
  
Deferred income taxes
    
2,112
      
662
      
2,774
  
 
   
As of January 1, 2016
  
(in thousands)
  
As Previously
Reported
    
Adjustment
    
As Revised
  
Consolidated Statements of Changes in Shareholders' Equity
  
 
 
 
  
 
 
 
  
 
 
 
Accumulated deficit
   $
(232,565
)
   $
(9,626
)
   $
(242,191
)
Total shareholders' equity
    
1,338,926
      
(9,626
)
    
1,329,300