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What changed in HECLA MINING CO/DE/'s 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of HECLA MINING CO/DE/'s 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+762 added−760 removedSource: 10-K (2025-02-13) vs 10-K (2024-02-15)

Top changes in HECLA MINING CO/DE/'s 2024 10-K

762 paragraphs added · 760 removed · 228 edited across 9 sections

Item 1. Business

Business — how the company describes what it does

91 edited+15 added−236 removed101 unchanged
Biggest changeOur current business strategy is to focus our financial and human capital in the following areas: • Developing the Keno Hill properties located in the Yukon Territory, Canada • Operating our properties safely, and in an environmentally responsible and cost-effective manner. • Maintaining and investing in exploration and pre-development projects in the vicinities of 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 in the Keno Hill mining district in the Yukon Territory, Canada; our projects located in three districts in Nevada; 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, minerals 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 at our Montana exploration project. • Continuing to seek opportunities to acquire and invest in mining and exploration properties and companies. 4 Metals Prices Our operating results are substantially dependent upon the prices of silver, gold, lead and zinc, which can fluctuate widely.
Biggest changeOur current business strategy is to focus our financial and human resources in the following areas: • operating our properties safely, in an environmentally responsible and cost-effective manner; • strengthen balance sheet to preserve our financial position in varying metals price and operational environments, improve capital allocation framework with a focus on Return On Invested Capital ("ROIC") and free cash flow generation; • improving and optimizing operations at all sites, which includes incurring costs for new technologies and equipment, and implementing standardized systems and processes; • optimize asset portfolio and identify growth opportunities; • expanding our proven and probable reserves, mineral resources and production capacity at our properties; • advancing the development and ramp up of the Keno Hill mine to profitability; • seeking opportunities to acquire and invest in mining and exploration properties and companies; • advancing permitting of the Libby Exploration project in Montana (50 miles from Lucky Friday); • enhance ESG performance and risk management systems; • build high-performing teams and strengthen organizational capabilities; and • maintaining and investing in exploration and pre-development projects in the vicinities of 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; our projects located in two districts in Nevada; our projects in the Keno Hill mining district in the Yukon Territory, Canada; northwestern Montana; and the Republic Mining District in Washington state. 4 Metals Prices Our operating results are substantially dependent upon the prices of silver, gold, lead and zinc, which can fluctuate widely.
And when we do experience insurable losses – such as with the fire at the Lucky Friday in August and September of 2023 – it can take a long period of time before we receive any or all insurance proceeds. See Item 1A.
When we do experience insurable losses – such as with the fire at the Lucky Friday in August and September of 2023 – it can take a long period of time before we receive any or all insurance proceeds. See Item 1A.
Such risks could result in: • personal injury or fatalities; • damage to or destruction of mineral properties or producing facilities; • environmental damage and financial penalties; • delays in exploration, development or mining; 15 • monetary losses; • inability to meet our financial obligations; • asset impairment charges; • legal liability; and • temporary or permanent closure of facilities.
Such risks could result in: • personal injury or fatalities; • damage to or destruction of mineral properties or producing facilities; • environmental damage and financial penalties; • delays in exploration, development or mining; • monetary losses; • inability to meet our financial obligations; 15 • asset impairment charges; • legal liability; and • temporary or permanent closure of facilities.
Because we conduct operations internationally, we are subject to political, social, legal and economic risks such as: • the effects of local political, labor and economic developments and unrest; • significant or abrupt changes in the applicable regulatory or legal climate; • significant changes to regulations or laws or the interpretation or enforcement of them; • exchange controls and export restrictions; • expropriation or nationalization of assets with inadequate compensation; • unfavorable currency fluctuations, particularly in the exchange rate between the U.S. dollar and the Canadian dollar and Mexican Peso; • repatriation restrictions; • invalidation and unavailability of governmental orders, permits or agreements; • property ownership disputes; 18 • renegotiation or nullification of existing concessions, licenses, permits and contracts; • criminal activity, corruption, demands for improper payments, expropriation, and uncertain legal enforcement and physical security; • failure to maintain compliance with corruption and transparency statutes, including the U.S.
Because we conduct operations internationally, we are subject to political, social, legal and economic risks such as: • the effects of local political, labor and economic developments and unrest; • significant or abrupt changes in the applicable regulatory or legal climate; • significant changes to regulations or laws or the interpretation or enforcement of them; • exchange controls and export restrictions; • expropriation or nationalization of assets with inadequate compensation; • unfavorable currency fluctuations, particularly in the exchange rate between the U.S. dollar and the Canadian dollar and Mexican Peso; 18 • repatriation restrictions; • invalidation and unavailability of governmental orders, permits or agreements; • property ownership disputes; • renegotiation or nullification of existing concessions, licenses, permits and contracts; • criminal activity, corruption, demands for improper payments, expropriation, and uncertain legal enforcement and physical security; • failure to maintain compliance with corruption and transparency statutes, including the U.S.
Potential key material physical risks to Hecla from climate change include, but are not limited to: • increased volumes of mine contact water requiring storage and treatment; • increased design requirements for stormwater diversion and associated water management systems; 13 • reduced freshwater availability due to potential drought conditions; • damage to roads and other infrastructure at our sites due to extreme weather events including intense rainfalls and related events such as landslides; and • unpermitted or otherwise non-compliant discharge of wastewater due to an increased frequency of extreme weather events exceeding the design capacity of existing tailings storage facilities and other stormwater management infrastructure.
Potential key material physical risks to Hecla from climate change include, but are not limited to: • increased volumes of mine contact water requiring storage and treatment; • increased design requirements for stormwater diversion and associated water management systems; • reduced freshwater availability due to potential drought conditions; • damage to roads and other infrastructure at our sites due to extreme weather events including intense rainfalls and related events such as landslides; and • unpermitted or otherwise non-compliant discharge of wastewater due to an increased frequency of extreme weather events exceeding the design capacity of existing tailings storage facilities and other stormwater management infrastructure.
The more significant areas requiring the use of management assumptions and estimates relate to: • mineral reserves, resources, and exploration targets that are the basis for future income and cash flow estimates and units-of-production depreciation, depletion and amortization calculations; • future ore grades, throughput and recoveries; • future metals prices; • future capital and operating costs; • environmental, reclamation and closure obligations; • permitting and other regulatory considerations; • asset impairments; • valuation of business combinations; • insurance proceeds; • future foreign exchange rates, inflation rates and applicable tax rates; • reserves for contingencies and litigation; and • deferred tax asset valuation allowance.
The more significant areas requiring the use of management assumptions and estimates relate to: • mineral reserves, resources, and exploration targets that are the basis for future income and cash flow estimates and units-of-production depreciation, depletion and amortization calculations; • future ore grades, throughput and recoveries; 11 • future metals prices; • future capital and operating costs; • environmental, reclamation and closure obligations; • permitting and other regulatory considerations; • asset impairments; • valuation of business combinations; • insurance proceeds; • future foreign exchange rates, inflation rates and applicable tax rates; • reserves for contingencies and litigation; and • deferred tax asset valuation allowance.
The potential liabilities associated with the pre-existing environmental conditions at Keno Hill are indemnified by Canada under the terms and conditions of the ARSA, subject to the requirement for ERDC to develop, permit, and implement the Reclamation Plan, or if Hecla and the Government agree to transfer portions of the historic area to active mining operations within the Keno Hill unit, then such indemnification ceases to the extent of such transferred area.
The potential liabilities associated with the pre-existing environmental conditions at Keno Hill are indemnified by Canada under the terms and conditions of the ARSA, subject to the requirement for ERDC to develop, permit, and implement the Reclamation Plan, or if Hecla and Canada agree to transfer portions of the historic area to active mining operations within the Keno Hill unit, then such indemnification ceases to the extent of such transferred area.
The information contained on, or that may be accessed through, our web site is not incorporated by reference into, and is not a part of, this document. Item 1A. Risk Factors The following risks and uncertainties, together with the other information set forth in this report, should be carefully considered by those who invest in our securities.
The information contained on, or that may be accessed through, our web site is not incorporated by reference into, and is not a part of, this document. 9 Item 1A. Risk Factors The following risks and uncertainties, together with the other information set forth in this report, should be carefully considered by those who invest in our securities.
ERDC receives agreed-to commercial contractor rates when retained by Canada to provide environmental services in the historical Keno Hill site outside the scope of care and maintenance and closure and reclamation planning under the ARSA (in the latter case, for which ERDC receives an annual fee of $900,000 from Canada, adjustable for material changes in scope).
ERDC receives agreed-to commercial contractor rates when retained by Canada to provide environmental services in the historical Keno Hill site outside the scope of care and maintenance and closure and reclamation planning under the ARSA (in the latter case, for which ERDC receives an annual fee of CAD$900,000 from Canada, adjustable for material changes in scope).
We cannot assure you that we will not experience net losses in the future. 11 Our accounting and other estimates may be imprecise. Preparing consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts and related disclosure of assets, liabilities, revenue and expenses at the date of the consolidated financial statements and reporting periods.
We cannot assure you that we will not experience net losses in the future. Our accounting and other estimates may be imprecise. Preparing consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts and related disclosure of assets, liabilities, revenue and expenses at the date of the consolidated financial statements and reporting periods.
Strategic talent reviews and succession planning reviews are conducted periodically across all business areas, and our training programs are adapted accordingly. The Chief Executive Officer (“CEO”), senior level company leadership and board of directors periodically review Hecla's top talent. Creating more opportunities for women and indigenous people are among our priorities for employee development.
Strategic talent reviews and succession planning reviews are conducted periodically across all business areas, and our training programs are adapted accordingly. The Chief Executive Officer (“CEO”), senior level company leadership and the Board of Directors periodically review our top talent. Creating more opportunities for women and indigenous people are among our priorities for employee development.
The vast majority of our employees are full-time. Approximately 260 of our employees at the Lucky Friday were covered by a collective bargaining agreement. 8 The attraction, development and retention of people is critical to delivering our business strategy. Key areas of focus for us include: Health and Safety The safety and health of our employees is of paramount importance.
The vast majority of our employees are full-time. Approximately 260 of our employees at the Lucky Friday were covered by a collective bargaining agreement. The attraction, development and retention of people is critical to delivering our business strategy. Key areas of focus for us include: Health and Safety The safety and health of our employees is of paramount importance.
Our operations may be adversely affected by risks and hazards associated with the mining industry that may not be fully covered by insurance. Our business is capital intensive, requiring ongoing investment for the replacement, modernization or expansion of equipment and facilities. Our mining and milling operations are subject to risks of process disruptions and equipment malfunctions.
Our operations may be adversely affected by risks and hazards associated with the mining industry that may not be fully covered by insurance. 14 Our business is capital intensive, requiring ongoing investment for the replacement, modernization or expansion of equipment and facilities. Our mining and milling operations are subject to risks of process disruptions and equipment malfunctions.
See Note 10 of Notes to Consolidated Financial Statements for more information on these forward contract programs. 12 Our ability to recognize the benefits of deferred tax assets related to net operating loss carryforwards and other items is dependent on future cash flows generating taxable income.
See Note 10 of Notes to Consolidated Financial Statements for more information on these forward contract programs. Our ability to recognize the benefits of deferred tax assets related to net operating loss carryforwards and other items is dependent on future cash flows generating taxable income.
Silver, gold, lead and zinc prices fluctuate widely and are affected by numerous factors, including: • speculative activities; • relative exchange rates of the U.S. dollar; • global and regional demand and production; • political instability; • inflation, recession or increased or reduced economic activity; and • other political, regulatory and economic conditions.
Silver, gold, lead, zinc and copper prices fluctuate widely and are affected by numerous factors, including: • speculative activities; • relative exchange rates of the U.S. dollar; • global and regional demand and production; • political instability; • inflation, recession or increased or reduced economic activity; and • other political, regulatory and economic conditions.
However, such activities may prevent us from realizing revenues in the event that the market price of a metal exceeds the price stated in a contract, and may also result in significant mark-to-market fair value adjustments, which may have a material adverse impact on our reported financial results.
However, such activities may prevent us from realizing revenues in the event that the market price of a metal exceeds the price stated in a forward contract, and may also result in significant mark-to-market fair value adjustments, which may have a material adverse impact on our reported financial results.
In addition, any amendments 9 to our Code of Ethics or waivers granted to our directors and executive officers will be posted on our website. Each of these documents may be periodically revised, so you are encouraged to visit our website for any updated terms.
In addition, any amendments to our Code of Ethics or waivers granted to our directors and executive officers will be posted on our website. Each of these documents may be periodically revised, so you are encouraged to visit our website for any updated terms.
Risk Factors – We face substantial governmental regulation, including the Mine Safety and Health Act, various environmental laws and regulations and the 1872 Mining Law . 6 Environmental Our operations are subject to various environmental laws and regulations at the federal and state/provincial level.
Risk Factors – We face substantial governmental regulation, including the Mine Safety and Health Act, various environmental laws and regulations and the 1872 Mining Law . 6 Environmental Our operations are subject to various environmental laws and regulations at the federal and state/provincial/territorial level.
The volatility of such prices is illustrated in the following table, which sets forth our average realized prices and the high, low and average daily closing market prices for silver, gold, lead and zinc over the last three years.
The volatility of such prices is illustrated in the following table, which sets forth our average realized prices and the high, low and average daily closing market prices for silver, gold, lead, zinc and copper over the last three years.
Additionally, significant future issuances of common stock or common stock equivalents, or changes in the direct or indirect ownership of our common stock or common stock equivalents, could limit our ability to utilize our net operating loss carryforwards pursuant to Section 382 of the Internal Revenue Code.
Additionally, significant future issuances of common stock or common stock equivalents, or changes in the direct or indirect ownership of our common stock or common stock 12 equivalents, could limit our ability to utilize our net operating loss carryforwards pursuant to Section 382 of the Internal Revenue Code.
Production may be reduced below our historical or estimated levels for many reasons, including, but not limited to, mining accidents; unfavorable ground or shaft conditions; fire, influx of water or other insured and uninsured events; work stoppages or slow-downs; lower than expected ore grades; cybersecurity attacks; unexpected regulatory actions; if the metallurgical characteristics of ore are less economic than anticipated; or because our equipment or facilities fail to operate properly or as expected.
Production may be reduced below our historical or estimated levels for many reasons, including, but not limited to, mining accidents; unfavorable ground or shaft conditions; extreme weather events; fire, influx of water or other insured and uninsured events; work stoppages or slow-downs; lower than expected ore grades; cybersecurity attacks; unexpected regulatory actions; if the metallurgical characteristics of ore are less economic than anticipated; or because our equipment or facilities fail to operate properly or as expected.
Our mines are subject to risks relating to ground instability, including, but not limited to, pit wall failure, crown pillar collapse, seismic events, backfill and stope failure or the breach or failure of a tailings impoundment.
Our mines are subject to risks relating to ground instability, including, but not limited to, pit wall failure, crown pillar collapse, seismic events, backfill and stope failure or the breach or failure of a tailings or other impoundment.
Our revenue is derived primarily from the sale of concentrates and doré containing silver, gold, lead and zinc and, as a result, our earnings are directly related to the prices of these metals.
Our revenue is derived primarily from the sale of concentrates and doré containing silver, gold, lead, zinc and copper and, as a result, our earnings are directly related to the prices of these metals.
The estimated quantities and economic value of mineral reserves may be adversely affected by: • declines in the market price of the various metals we mine; • increased production or capital costs; • reduction in the grade or tonnage of the deposit; • decrease in throughput; • increase in the dilution of the ore; • future foreign currency rates, inflation rates and applicable tax rates; • reduced metal recovery; and • changes in environmental, permitting or other regulatory requirements.
The estimated quantities and economic value of mineral reserves may be adversely affected by: • declines in the market price of the various metals we mine; • increased production or capital costs; • reduction in the grade or tonnage of the deposit; • decrease in throughput; • increase in the dilution of the ore; • future foreign currency rates, inflation rates and applicable tax rates; • current and future tariffs; • reduced metal recovery; and • changes in environmental, permitting or other regulatory requirements.
Accordingly, it is possible that our permitting activities, profitable production, exploration or development activities on our Canadian properties could be delayed, interrupted or otherwise adversely affected in the future by political uncertainty, native land claims entitlements, expropriations of property, financial arrangements, changes in applicable law, governmental policies and policies of relevant interest groups, including those of First Nations.
However, it is possible that our permitting activities, profitable production, exploration or development activities on our Canadian properties could be delayed, interrupted or otherwise adversely affected in the future by political uncertainty, native land claims entitlements, expropriations of property, financial arrangements, changes in applicable law, governmental policies and policies of relevant interest groups, including those of First Nations.
This determination is based on estimates of several factors, including: • mineral reserves and resources; • expected ore grades and recovery rates of metals from the ore; • future metals prices; • facility and equipment costs; • availability of adequate staffing; • availability of affordable sources of power and adequacy of water supply; • exploration and drilling success; • capital and operating costs of a development project; • environmental and closure, permitting and other regulatory considerations and costs; • adequate access to the site, including competing land uses (such as agriculture); • applicable tax rates; • foreign currency fluctuation and inflation rates; and • availability and cost of financing.
This determination is based on estimates of several factors, including: • mineral reserves and resources; • expected ore grades and recovery rates of metals from the ore; • future metals prices; • facility and equipment costs; • availability of adequate staffing; • availability of affordable sources of power and adequacy of water supply; • exploration and drilling success; • capital and operating costs of a development project; • environmental and closure, permitting and other regulatory considerations and costs; • adequate access to the site, including competing land uses (such as agriculture); • applicable tax rates; • current and potential tariffs; • foreign currency fluctuation and inflation rates; and • availability and cost of financing.
Metal prices, reserve, production and cost estimates are key components to determine the expected future benefit of our deferred tax assets. To the extent that future taxable income differs significantly from estimates as a result of a decline in metals prices or other factors, our ability to realize the deferred tax assets could be impacted.
Metal prices, reserves, production and cost estimates are key components to determine the expected future benefit of our deferred tax assets. To the extent that future taxable income differs significantly from estimates as a result of a decline in metals prices or other factors, our ability to realize the deferred tax assets could be impacted.
Risk Factors – We face substantial governmental regulation, including the Mine Safety and Health Act, various environmental laws and regulations and the 1872 Mining Law ; Our operations are subject to complex, evolving and increasingly stringent environmental laws and regulations ; Compliance with environmental regulations, and litigation based on such regulations, involves significant costs and can threaten existing operations or constrain expansion opportunities ; Our environmental and asset retirement obligations may exceed the provisions we have made ; and New federal and state laws, regulations and initiatives could impact our operations .
Risk Factors – We face substantial governmental regulation, including the Mine Safety and Health Act, various environmental laws and regulations and the 1872 Mining Law ; Our operations are subject to complex, evolving and increasingly stringent environmental laws and regulations ; Compliance with environmental regulations, and litigation based on such regulations, involves significant costs and can threaten existing operations or constrain expansion opportunities; Mine closure and reclamation obligations impose substantial costs on our operations; Our environmental and asset retirement obligations may exceed the provisions we have made ; and New federal and state laws, regulations and initiatives could impact our operations .
Information on our web site is not incorporated into this Annual Report on Form 10-K. We file our annual, quarterly and current reports and any amendments to these reports with the SEC, copies of which are available on our website or from the SEC free of charge ( www.sec.gov or 800-SEC-0330 ).
Information on our web site is not incorporated into this Annual Report on Form 10-K. We file our annual, quarterly and current reports and any amendments to these reports with the SEC, copies of which are available on our website or from the SEC free of charge ( www.sec.gov ).
We employ our Senior Vice President - Chief Administrative Officer who is responsible for developing and executing our human capital strategy. The position is an executive-level position to reflect the priority we place on utilizing our human capital resources to meet our business strategy. Available Information Hecla Mining Company is a Delaware corporation.
Our Senior Vice President - Chief Administrative Officer is responsible for developing and executing our human capital strategy. The position is an executive-level position to reflect the priority we place on utilizing our human capital resources to meet our business strategy. Available Information Hecla Mining Company is a Delaware corporation.
The mining workforce of the future, like all industries, will see a continual change in the jobs and skill sets required as we adopt new technologies and make our workplace safer and more efficient. We are also committed to helping employees update their skills.
The mining workforce of the future, like most industries, will see a continual change in the jobs and skill sets required as we adopt new technologies and make our workplace safer and more efficient. We are also committed to helping employees update their skills.
Insurance specific to environmental risks is generally either unavailable or, we believe, cost prohibitive, and we therefore do not maintain environmental insurance. Occurrence of events for which we are not insured may have an adverse effect on our business.
Insurance specific to environmental risks is generally either unavailable or, we believe, cost prohibitive, and we therefore we maintain limited environmental insurance. Occurrence of events for which we are not insured may have an adverse effect on our business.
Returns, if any, on investments are subject to fluctuations based on investment choices and market conditions. In addition, we have a supplemental excess retirement plan which was funded as of December 31, 2023.
Returns, if any, on investments are subject to fluctuations based on investment choices and market conditions. In addition, we have a supplemental excess retirement plan which was funded as of December 31, 2024.
A comprehensive discussion of our financial results for the years ended December 31, 2023, 2022 and 2021, individual operation performance and other significant items can be found in Item 7.
A comprehensive discussion of our financial results for the years ended December 31, 2024, 2023 and 2022, individual operation performance and other significant items can be found in Item 7.
We strive to achieve excellent mine safety and health performance, and attempt to implement reasonable best practices with respect to mine safety and emergency preparedness. Achieving and maintaining compliance with regulations will be challenging and may increase our operating costs. See Human Capital - Health and Safety below and Item 1A.
We strive to achieve excellent mine safety and health performance, and attempt to implement reasonable best practices with respect to mine safety and emergency preparedness. Achieving and maintaining compliance with regulations is challenging and may increase our operating costs. See Human Capital - Health and Safety below and Item 1A.
We also plan to invest approximately $5.5 million for on-going reclamation works at the former Troy Mine in Montana. The projected remaining cost for reclamation at the site is included in our accrued reclamation and closure costs liability. See Item 1A.
We also plan to invest approximately $3.5 million for on-going reclamation work at the former Troy Mine in Montana. The projected remaining cost for reclamation at the site is included in our accrued reclamation and closure costs liability. See Item 1A.
See Item 1A. Risk Factors – A substantial or extended decline in metals prices would have a material adverse effect on us for information on a number of the factors that can impact prices of the metals we produce. Our 2023 realized average prices for all metals we sold, except zinc, were higher compared to 2022.
See Item 1A. Risk Factors – A substantial or extended decline in metals prices would have a material adverse effect on us for information on a number of the factors that can impact prices of the metals we produce. Our 2024 realized average prices for all metals we sold, except lead, were higher compared to 2023.
If the prices of metals that we produce decline substantially below the levels used to calculate reserves for an extended period, we could experience: • delays in new project development; • net losses; • reduced cash flow; • reductions in reserves and resources; • write-downs of asset values; and • mine closure.
If the prices of metals that we produce decline substantially below the levels used to calculate reserves for an extended period, we could experience: • delays in new project development; • net losses; • reduced cash flow; • reductions in reserves and resources; • write-downs of asset values; • temporary suspension of mining activities; and • mine closure.
We discover, acquire and develop mines and other mineral interests and produce and market (i) concentrates containing silver, gold and other metals, (ii) carbon material containing silver and gold, and (iii) unrefined doré containing silver and gold. In doing so, we intend to manage our business activities in a safe, environmentally responsible and cost-effective manner.
We discover, acquire and develop mines and other mineral interests and produce and market (i) concentrates containing silver, gold, lead, zinc and copper, (ii) carbon material containing silver and gold, and (iii) unrefined doré containing silver and gold. In doing so, we intend to manage our business activities in a safe, environmentally responsible and cost-effective manner.
Such write-downs may adversely affect our results of operations and financial condition. ” If the prices of silver, gold, zinc and lead decline for an extended period of time, if we fail to control production or capital costs, if regulatory issues increase costs or decrease production, or if we do not realize the mineable mineral reserves, resources or exploration targets at our mining properties, we may be required to recognize asset write-downs in the future.
Such write-downs may adversely affect our results of operations and financial condition. ” If the prices of the metals we produce decline for an extended period of time, if we fail to control production or capital costs, if regulatory issues increase costs or decrease production, or if we do not realize the mineable mineral reserves, resources or exploration targets at our mining properties, we may be required to recognize asset write-downs in the future.
Completing the Reclamation Plan is expected to take approximately 5 more years and is estimated to cost approximately $140 million over that time, for which we expect ERDC to be reimbursed for all material costs incurred.
Completing the Reclamation Plan is expected to take approximately 5 more years and is currently estimated to cost approximately CAD$348 million over that time, for which we expect ERDC to be reimbursed for all material costs incurred.
Additional financial impacts could include increased capital or operating costs to increase water storage and treatment capacity, obtain or develop maintenance and monitoring technologies, increase resiliency of facilities and establish supplier climate resiliency and contingency plans.
Additional financial impacts could include increased capital or operating costs to (i) increase water storage and treatment capacity, (ii) obtain or develop maintenance and monitoring technologies, (iii) increase resiliency of facilities and (iv) establish supplier climate resiliency and contingency plans.
At December 31, 2023, the book value of our properties, plants, equipment and mineral interests, net of accumulated depreciation, was approximately $2.7 billion. For more information see Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations. We maintain insurance policies against property loss and business interruption.
At December 31, 2024, the book value of our properties, plants, equipment and mine development, net of accumulated depreciation, was approximately $2.7 billion. For more information see Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations. We maintain insurance policies against property loss and business interruption.
We currently have foreign operations in Mexico and Canada, and we expect to continue to conduct operations there and possibly other international locations in the future.
We currently have operations in Canada (and limited activities in Mexico), and we expect to continue to conduct operations there and possibly other international locations in the future.
Management’s Discussion and Analysis of Consolidated Financial Condition and Results of Operations , as well as the Consolidated Financial Statements and Notes thereto. 5 Products and Segments Our segments are differentiated by geographic region.
Management’s Discussion and Analysis of Consolidated Financial Condition and Results of Operations , as well as the Consolidated Financial Statements and Notes thereto. 5 Products and Segments Our segments are differentiated by geographic region located in North America.
Properties - Lucky Friday for a description of the UCB method. We started testing the UCB method in 2020 and it was used for approximately 87%, 88% and 86% of the tons mined at Lucky Friday in 2023, 2022 and 2021, respectively. The UCB method has not been used at other mines.
We started testing the UCB method in 2020 and it was used for approximately 86%, 87% and 88% of the tons mined at Lucky Friday in 2024, 2023 and 2022, respectively. The UCB method has not been used at other mines.
Upon successful completion of the EA process under the NEPA, and if subsequent data collection and analysis activities suggest development of a mine is feasible, then it is anticipated that a new Plan of Operations for the construction and development of a mine at the Libby Exploration site would be submitted for approval.
Upon 7 successful completion of the EA process, and if subsequent data collection and analysis activities suggest development of a mine is feasible, then it is anticipated that a new Plan of Operations for the construction and development of a mine at the Libby Exploration site would be submitted for approval. See Item 1A.
We derive a significant amount of revenue from a relatively small number of customers and occasionally enter into concentrate spot market sales with metal traders. For the fiscal year ended December 31, 2023, our three largest customers accounted for approximately 24%, 16% and 16%, respectively, of our total revenues.
We derive a significant amount of revenue from a relatively small number of customers and occasionally enter into concentrate spot market sales with metal traders. For the fiscal year ended December 31, 2024, our three largest customers accounted for approximately 28%, 19% and 17%, respectively, of our total revenues.
Our business is subject to a number of other risks and hazards including: • environmental hazards; • unusual or unexpected geologic formations; • rock bursts, ground falls, pit wall failures, or tailings impoundment breaches or failures; • seismic activity; • shaft failure; • road and bridge failures; • underground floods or fires (such as we experienced in August 2023 when there was a fire deep within the #2 shaft at our Lucky Friday unit which caused production there to stop for approximately 5 months, before production resumed in January 2024, with the ramp up to full production ongoing); • unanticipated hydrologic conditions, including flooding and periodic interruptions due to inclement or hazardous weather conditions; • civil unrest or terrorism; • cybersecurity attacks; • changes in interpretation or enforcement of regulatory and permitting requirements; • industrial accidents; • disruption, damage or failure of power, technology or other systems related to operation of equipment and other aspects of our mine operations; • labor disputes or strikes; and • our operating mines have tailing ponds which could fail or leak as a result of seismic activity, unusual weather or for other reasons.
Our business is subject to a number of other risks and hazards including: • environmental hazards; • unusual or unexpected geologic formations; • rock bursts, ground falls, pit wall failures, or tailings or other impoundment breaches or failures; • seismic activity; • shaft failure; • road and bridge failures; • underground floods or fires (such as we experienced in August 2023 when there was a fire deep within the #2 shaft at our Lucky Friday unit which caused production there to stop for approximately 5 months, before production resumed in January 2024); • unanticipated hydrologic conditions, including lack of precipitation, flooding, rapid snow melt and associated runoff, and periodic interruptions due to inclement or hazardous weather conditions; • civil unrest or terrorism; • cybersecurity attacks; • changes in interpretation or enforcement of regulatory and permitting requirements; • industrial accidents; • disruption, damage or failure of power, technology or other systems related to operation of equipment and other aspects of our mine operations; • labor disputes or strikes; and • tailing ponds and other impoundments and dams which in the past have failed and could again fail or leak as a result of design or construction flaws, seismic activity, unusual weather or for other reasons.
We have experienced volatility in our net (loss) income reported in the last three years, as shown in our Consolidated Statement of Operations and Comprehensive (Loss) Income , including net loss of $84.2 million in 2023, $37.3 million in 2022 and net income of $35.1 million in 2021.
We have experienced volatility in our net income (loss) reported in the last three years, as shown in our Consolidated Statement of Operations and Comprehensive Income (Loss) , including net income of $35.8 million in 2024, net losses of $84.2 million and $37.3 million in 2023 and 2022, respectively.
When events or changes in circumstances indicate the carrying value of our long-lived assets may not be recoverable, we review the recoverability of the carrying value by estimating the future undiscounted cash flows expected to result from the use and eventual disposition of the asset. Impairment must be recognized when the carrying value of the asset exceeds these cash flows.
When events or changes in circumstances indicate the carrying value of our long-lived assets may not be recoverable, (a "triggering event") we review the recoverability of the carrying value by estimating the future undiscounted cash flows expected to result from the use and eventual disposition of the asset.
We are organized and managed in five segments that encompass our operating mines and significant assets being Greens Creek, Lucky Friday, Keno Hill, Casa Berardi and the Nevada Operations.
We are organized and managed in four segments that encompass our operating mines and significant assets being Greens Creek, Lucky Friday, Keno Hill and Casa Berardi.
In 2022, realized average prices for all metals we sold, except gold, were lower compared to 2021. We are unable to predict fluctuations in prices for metals and have limited control over the timing of our concentrate shipments which impacts our realized prices.
In 2023, realized average prices for all metals we sold, except zinc, were higher compared to 2022. We are unable to predict fluctuations in prices for metals and have limited control over the timing of our concentrate shipments which also impacts our realized prices.
Mine closure and reclamation regulations impose substantial costs on our operations and include requirements that we provide financial assurance supporting those obligations. We currently have $195.4 million of financial assurances, primarily in the form of surety bonds, for reclamation company-wide. We anticipate approximately $13.5 million in expenditures in 2024 for environmental permit compliance and idle property management.
Mine closure and reclamation regulations impose substantial costs on our operations and include requirements that we provide financial assurance supporting those obligations. We currently have $213.6 million of financial assurances, primarily in the form of surety bonds, for reclamation company-wide. We anticipate approximately $7.3 million in expenditures in 2025 for environmental permit compliance and idle property management.
We periodically enter into risk management activities to manage the exposure to changes in prices of silver, gold, lead and zinc contained in our concentrate shipments between the time of sale and final settlement. We also utilize such programs to manage the exposure to changes in the prices of lead and zinc contained in our forecasted future shipments.
We periodically engage in risk management activities to manage the exposure to changes in prices of silver, gold, lead and zinc contained in our concentrate shipments between the time of sale and final settlement and manage the exposure to changes in the prices of lead and zinc contained in our forecasted future shipments.
Our estimates of undiscounted cash flows for our long-lived assets also include an estimate of the market value of the resources and exploration targets beyond the current operating plans. 10 We determined no impairments were required for triggering events identified during 2023.
Our estimates of undiscounted cash flows for our long-lived assets also include an estimate of the market value of the resources and exploration targets beyond the current operating plans. We determined no impairments was required for a triggering event identified during 2024.
Risk Factors – Our operations may be adversely affected by risks and hazards associated with the mining industry that may not be fully covered by insurance . Human Capital As of December 31, 2023, we had approximately 1,775 employees, of which approximately 990 were employed in the United States, 765 in Canada, and 20 in Mexico.
Risk Factors – Our operations may be adversely affected by risks and hazards associated with the mining industry that may not be fully covered by insurance . Human Capital As of December 31, 2024, we had approximately 1,830 employees, of which approximately 1,070 were employed in the United States, 750 in Canada, and 10 in Mexico.
In addition, we may be required to, or may voluntarily, enter into certain agreements with such tribal communities in order to facilitate development of our properties, which could reduce the expected earnings or income from any future production. 19 We may be subject to a number of unanticipated risks related to inadequate infrastructure.
In addition, we may be required to, or may voluntarily, enter into certain agreements with such tribal communities in order to facilitate development of our properties, which could reduce the expected earnings or income from any future production.
Compensation and Benefits We are among the largest private-sector employers in the communities in which we operate providing a compensation and benefits package that attracts, motivates, and retains employees. In addition to competitive base wages and incentive compensation, we offer retirement benefits, health insurance plans and paid time off.
Company-wide, our AIFR was 1.86 for 2024. 8 Compensation and Benefits We are among the largest private-sector employers in the communities in which we operate providing a compensation and benefits package that attracts, motivates, and retains employees. In addition to competitive base wages, and incentive compensation, we offer retirement benefits, health insurance plans and paid time off.
We produce zinc, silver and precious metals flotation concentrates at Greens Creek and silver and zinc flotation concentrates at Lucky Friday, each of which we sell to custom smelters and metal traders. The flotation concentrates produced at Greens Creek and Lucky Friday contain payable silver, zinc and lead, and at Greens Creek they also contain payable gold.
We produce silver, zinc, and precious metals flotation concentrates at Greens Creek and silver and zinc flotation concentrates at Lucky Friday, each of which we sell to custom smelters and metal traders.
Our All Injury Frequency Rate (“AIFR”) is calculated as the number of incidents in the period multiplied by 200,000 hours and divided by the number of hours worked in the period. Company-wide, our AIFR was 1.45 for 2023.
Our All Injury Frequency Rate (“AIFR”) is calculated as the number of incidents in the period multiplied by 200,000 hours and divided by the number of hours worked in the period.
We can only engage in exploration at our San Sebastian (Mexico), Hatter Graben (Nevada) and Libby Exploration (Montana) projects if we are successful in obtaining necessary permits. Similarly, mining at our planned open pits at Casa Berardi requires permits we don't yet have.
We can only engage in exploration at our exploration sites such as the Hollister and Hatter Graben (Nevada) and Libby Exploration (Montana) projects if we are successful in obtaining necessary permits. Similarly, mining at our planned open pits at Casa Berardi requires permits we have not yet received.
In addition, our operations and exploration activities at Keno Hill and the Yukon, Casa Berardi and San Sebastian are conducted pursuant to claims or concessions granted by the host government, and otherwise are subject to claims renewal and minimum work commitment requirements, which are subject to certain political risks associated with foreign operations. See Item 1A.
In addition, our operations and exploration activities in Canada are conducted pursuant to claims granted by the host government, and are subject to claims renewal and minimum work commitment requirements, which are subject to certain political risks associated with foreign operations. See Item 1A.
Recognizing impairment write-downs could negatively impact our results of operations. Metals price estimates are a key component used in the evaluation of the carrying values of our assets, as the evaluation involves comparing carrying values to the average estimated undiscounted cash flows resulting from operating plans using various metals price scenarios.
Metals price estimates are a key component used in the evaluation of the carrying values of our assets, as the evaluation involves comparing carrying values to the probability weighted estimated undiscounted cash flows resulting from operating plans using various metals price scenarios.
The sources for the market prices are the London Market Fixing prices from the London Bullion Market Association for silver and gold and the Cash Official prices from the London Metals Exchange for lead and zinc. 2023 2022 2021 Silver (per oz.): Realized average $ 23.33 $ 21.53 $ 25.24 Market average $ 23.39 $ 21.75 $ 25.17 Market high $ 26.03 $ 26.36 $ 28.48 Market low $ 20.09 $ 17.81 $ 21.53 Gold (per oz.): Realized average $ 1,939 $ 1,803 $ 1,796 Market average $ 1,943 $ 1,801 $ 1,800 Market high $ 2,049 $ 2,053 $ 1,940 Market low $ 1,811 $ 1,622 $ 1,684 Lead (per lb.): Realized average $ 1.03 $ 1.01 $ 1.03 Market average $ 0.97 $ 0.98 $ 1.00 Market high $ 1.06 $ 1.15 $ 1.14 Market low $ 0.90 $ 0.80 $ 0.86 Zinc (per lb.): Realized average $ 1.35 $ 1.41 $ 1.44 Market average $ 1.20 $ 1.58 $ 1.36 Market high $ 1.59 $ 2.05 $ 1.73 Market low $ 1.01 $ 1.23 $ 1.15 The prices of silver, gold, lead and zinc are affected by numerous factors beyond our control.
The sources for the market prices are the London Market Fixing prices from the London Bullion Market Association for silver and gold and the Cash Official prices from the London Metals Exchange for lead, zinc and copper. 2024 2023 2022 Silver (per oz.): Realized average $ 28.58 $ 23.33 $ 21.53 Market average $ 28.24 $ 23.39 $ 21.75 Market high $ 34.51 $ 26.03 $ 26.36 Market low $ 22.09 $ 20.09 $ 17.81 Gold (per oz.): Realized average $ 2,403 $ 1,939 $ 1,803 Market average $ 2,387 $ 1,943 $ 1,801 Market high $ 2,778 $ 2,049 $ 2,053 Market low $ 1,985 $ 1,811 $ 1,622 Lead (per lb.): Realized average $ 0.97 $ 1.03 $ 1.01 Market average $ 0.94 $ 0.97 $ 0.98 Market high $ 1.04 $ 1.06 $ 1.15 Market low $ 0.86 $ 0.90 $ 0.80 Zinc (per lb.): Realized average $ 1.37 $ 1.35 $ 1.41 Market average $ 1.26 $ 1.20 $ 1.58 Market high $ 1.47 $ 1.59 $ 2.05 Market low $ 1.04 $ 1.01 $ 1.23 Copper (per lb.): Realized average $ 4.20 NA NA Market average $ 4.15 NA NA Market high $ 4.90 NA NA Market low $ 3.66 NA NA The prices of the metals we produce are affected by numerous factors beyond our control.
It is our practice to work closely with and consult with First Nations in areas in which our projects are located or which could be impacted by our activities. However, there is no assurance that relationships with such groups will be positive.
It is our practice to work closely with and consult with First Nations in areas in which our projects are located or which could be impacted by our activities.
And in February 2022, we submitted letters to the United States Forest Service ("USFS") withdrawing from its consideration the former Plan of Operations for each of the Rock Creek and Libby Exploration (formerly known as Montanore) projects in Montana. 7 A new Plan of Operations for the Libby Exploration project limited to underground exploration and evaluation activities was submitted to the USFS is currently under an Environmental Assessment review (“EA”) under the National Environmental Policy Act (“NEPA”).
At the Libby Exploration project (formerly known as Montanore), in February 2022, we submitted a new Plan of Operations to the United States Forest Service limited to underground exploration and evaluation activities that is currently under an Environmental Assessment review (“EA”) under the National Environmental Policy Act (“NEPA”).
Other closures or impacts on operations or production may occur at any of our mines at any time, whether related to accidents, changes in conditions, changes to regulatory policy, or as precautionary measures.
Other closures or impacts on operations or production may occur at any of our mines at any time, whether related to accidents, changes in conditions, changes to regulatory policy, or as precautionary measures. See “Our operations are subject to complex, evolving and increasingly stringent environmental laws and regulations.
In July 2022, we entered into our $150 million revolving credit facility (with the option to increase to $225 million). Like the indenture, the credit agreement governing the revolving credit facility also has restrictions on the incurrence of additional indebtedness but with a number of significant qualifications and exceptions.
In May 2024, we entered into an amended revolving credit agreement (the "Credit Agreement") which increased borrowing capacity to $225 million. Like the indenture, the credit agreement governing the revolving credit facility also has restrictions on the incurrence of additional indebtedness but with a number of significant qualifications and exceptions.
During that time, it may become no longer feasible to produce those 17 minerals for economic, regulatory, political or other reasons. As a result of high costs and other uncertainties, we may not be able to expand or replace our existing mineral reserves as they are depleted, which would adversely affect our business and financial position in the future.
As a result of high costs and other uncertainties, we may not be able to expand or replace our existing mineral reserves as they are depleted, which would adversely affect our business and financial position in the future.
The mining claims and rights that comprise our Keno Hill mine are owned by two of our indirect, wholly-owned subsidiaries, Alexco Keno Hill Mining Company and Elsa Reclamation & Development Company Ltd. (“ERDC”).
Keno Hill is located at a site in the Yukon Territory where extensive historical mining activity occurred. The mining claims and rights that comprise our Keno Hill mine are owned by two of our indirect, wholly-owned subsidiaries, Alexco Keno Hill Mining Company and Elsa Reclamation & Development Company Ltd. (“ERDC”).
Efforts to expand the finite lives of our mines may not be successful or could result in significant demands on our liquidity, which could hinder our growth. One of the risks we face is that mines are depleting assets. Thus, in order to maintain or increase production we must continually replace depleted mineral reserves by locating and developing additional ore.
Efforts to expand the finite lives of our mines may not be successful or could result in significant demands on our liquidity, which could hinder our growth. 17 One of the risks we face is that mines are depleting assets.
The occurrence of weather and climate events have in the past and could in the future cause us to incur unplanned costs, which may be material, to address or prevent resulting damage. In addition, we have identified opportunities and potential risks for Hecla as we shift toward a low-carbon economy.
The occurrence of weather and climate events have in the past and could in the future cause us to incur unplanned costs, which may be material, to address or prevent resulting damage.
Under the ARSA and related documents, ERDC, as a paid contractor for the Yukon Government, is responsible for the development and eventual implementation of the district wide reclamation and closure plan (“Reclamation Plan”) which addresses the historic environmental liabilities of the district from past mining activities pre-dating Alexco’s and Hecla’s acquisition of the Keno Hill project, as well as for carrying out care and maintenance at various locations within the historical Keno Hill site until the Reclamation Plan is implemented (Hecla’s predecessor, Alexco, previously deposited CDN$10 million in a trust which funds ERDC’s maximum contribution toward implementing the Reclamation Plan, and agreed to a 1.5% net smelter royalty capped at CAD$4 million, of which approximately CAD$1.2 million paid or accrued for as of December 31, 2023).
Under the ARSA and related documents, ERDC, as a paid contractor for the Yukon Government, is responsible for the development and eventual implementation of the district wide reclamation and closure plan (“Reclamation Plan”) which addresses the historic environmental liabilities of the district from past mining activities pre-dating Hecla’s (and Alexco's) acquisition of the Keno Hill project, as well as for carrying out care and maintenance at various locations within the historical Keno Hill site until the Reclamation Plan is implemented.
A decline in metals prices for an extended period of time or our inability to convert resources or exploration targets to reserves could significantly reduce our estimates of the value of the resources or exploration targets at our properties and result in asset write-downs.
A decline in metals prices for an extended period of time or our inability to convert resources or exploration targets to reserves could significantly reduce our estimates of the value of the resources or exploration targets at our properties and result in asset write-downs. 10 We have a substantial amount of debt that could impair our financial health and prevent us from fulfilling our obligations under our existing and future indebtedness.
See Note 7 of Notes to Consolidated Financial Statements for further discussion of our deferred tax assets. Returns for investments in pension plans and pension plan funding requirements are uncertain. We maintain defined benefit pension plans for most U.S. employees, which provide for defined benefit payments after retirement for those employees.
Returns for investments in pension plans and pension plan funding requirements are uncertain. We maintain defined benefit pension plans for most U.S. employees, which provide for defined benefit payments after retirement for those employees.
Keno Hill is 100% owned and was acquired as part of our acquisition of Alexco in September 2022. Production ramp-up commenced in June 2023. • Casa Berardi located in the Abitibi region of northwestern Quebec, Canada. Casa Berardi is 100% owned and has been in production since late 2006. • The Nevada Operations is located in northern Nevada.
Production ramp-up commenced in June 2023. • Casa Berardi located in the Abitibi region of northwestern Quebec, Canada - 100% owned and has been in production since late 2006.
Such events can temporarily slow or halt operations due to physical damage to assets, reduced worker productivity for safety protocols on site related to extreme weather events, worker aviation and bus transport to or from the site, and local or global supply route disruptions that may limit transport of essential materials and supplies.
Such events can temporarily slow or halt operations due to physical damage to assets, unavailability of power, reduced worker productivity for safety protocols on site related to extreme weather events, and difficulties transporting workers, materials or supplies to or from sites.
In the event it were to flare up in a manner similar to the past, or worse, our operations and financial results could again be negatively impacted Our operations are subject to a range of risks related to climate change and transitioning the business to meet regulatory, societal and investor expectations for operating in a low-carbon economy.
For example, the COVID-19 pandemic impacted our operations and financial results between 2020 and 2022. Our operations are subject to a range of risks related to climate change and transitioning the business to meet regulatory, societal and investor expectations for operating in a low-carbon economy.
Greens Creek is 100% owned and has been in production since 1989. • Lucky Friday located in northern Idaho. Lucky Friday is 100% owned and has been a producing mine for us since 1958. • Keno Hill located in the Keno Hill Silver District in Canada's Yukon Territory.
Our segments as of December 31, 2024 included: • Greens Creek located on Admiralty Island, near Juneau, Alaska - 100% owned and has been in production since 1989. • Lucky Friday located in northern Idaho - 100% owned and has been a producing mine for us since 1958. • Keno Hill located in the Keno Hill Silver District in Canada's Yukon Territory - 100% owned and was acquired as part of our acquisition of Alexco in September 2022.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeThe chart below illustrates the factors contributing to Cash Cost, After By-product Credits, Per Gold Ounce for 2023, 2022 and 2021: The following table summarizes the components of Cash Cost, After By-product Credits, per Gold Ounce: Years Ended December 31, 2023 2022 2021 Cash Cost, Before By-product Credits, per Gold Ounce $ 1,658 $ 1,483 $ 1,131 By-product credits per gold ounce (6 ) (5 ) (6 ) Cash Cost, After By-product Credits, per Gold Ounce $ 1,652 $ 1,478 $ 1,125 The following table summarizes the components of AISC, After By-product Credits, per Gold Ounce: Years Ended December 31, 2023 2022 2021 AISC, Before By-product Credits, per Gold Ounce $ 2,054 $ 1,778 $ 1,365 By-product credits per gold ounce (6 ) (5 ) (6 ) AISC, After By-product Credits, per Gold Ounce $ 2,048 $ 1,773 $ 1,359 73 The increase in Cash Cost and AISC, each After By-product Credits, per Gold Ounce for 2023 compared to 2022 and 2021 was primarily driven by lower gold production as Casa Berardi transitions from an underground/open pit operation to an open pit only operation, as discussed above.
Biggest changeThe chart below illustrates the factors contributing to Cash Cost, After By-product Credits, Per Gold Ounce for 2024, 2023 and 2022: The following table summarizes the components of Cash Cost, After By-product Credits, per Gold Ounce: Years Ended December 31, 2024 2023 2022 Cash Cost, Before By-product Credits, per Gold Ounce $ 1,770 $ 1,658 $ 1,483 By-product credits per gold ounce (8 ) (6 ) (5 ) Cash Cost, After By-product Credits, per Gold Ounce $ 1,762 $ 1,652 $ 1,478 The following table summarizes the components of AISC, After By-product Credits, per Gold Ounce: 76 Years Ended December 31, 2024 2023 2022 AISC, Before By-product Credits, per Gold Ounce $ 1,998 $ 2,054 $ 1,778 By-product credits per gold ounce (8 ) (6 ) (5 ) AISC, After By-product Credits, per Gold Ounce $ 1,990 $ 2,048 $ 1,773 The increase in Cash Cost, After By-product Credits, per Gold Ounce for 2024 compared to 2023 and 2022 was primarily driven by lower gold production, partly offset by lower production costs due to the cessation of underground mining of the east mine in July 2023.
Risk Factors - Our profitability could be affected by inflation, including the prices of other commodities for a discussion of certain risks related to our operation's profitability.
Item 1A. Risk Factors - Our profitability could be affected by inflation, including the prices of other commodities for a discussion of certain risks related to our operation's profitability.
Due to the time elapsed between shipment of concentrates and final settlement with customers, we must estimate the prices at which sales of our metals will be settled. Previously recorded sales are adjusted to estimated settlement metals prices each period through final settlement.
Due to the time elapsed between shipment of concentrates to the customer and final settlement with the customer, we must estimate the prices at which sales of our metals will be settled. Previously recorded sales and trade accounts receivable are adjusted to estimated settlement prices until final settlement by the customer.
(4) Other includes $5.3 million of sales and total cost of sales for the year ended December 31, 2023 and $0.5 million of sales and total cost of sales for the year ended December 31, 2022, related to the environmental services business acquired as part of the Alexco acquisition.
(4) Other includes $20.5 million of total cost of sales for the year ended December 31, 2024, and $6.3 million and $4.5 million of cost of sales for the year ended December 31, 2023 and 2022, respectively, related to the Company's environmental services business and Nevada.
Total capital additions increased by $30.4 million in 2023 compared to 2022 primarily due to purchases of new surface fleet equipment as the mine transitions from an underground to an open pit operation and the construction of tailings storage facilities.
Total capital additions increased by $30.4 million in 2023 compared to 2022 primarily due to purchases of new surface fleet equipment, as mentioned above, and the construction of tailings storage facilities. Significant components of 2023 capital expenditures were tailings dam construction costs of $41.0 million, $18.2 million on machinery and equipment, and $11.2 million on development.
At Casa Berardi, silver is considered to be a by-product of our gold production, and the value of silver therefore offsets operating costs within our calculations of Cash Cost and AISC, each After By-product Credits, per Gold Ounce.
Casa Berardi reports Cash Cost, After By-product Credits, per Gold Ounce and AISC, After By-product Credits, per Gold Ounce for the production of gold, their primary product, and by-product revenues earned from silver, which is a by-product at Casa Berardi.
Because we consider silver to be a by-product of our gold production at Casa Berardi and Nevada Operations, the value of silver offsets operating costs within our calculations of Cash Cost, After By-product Credits, per Gold Ounce and AISC, After By-product Credits, per Gold Ounce.
Thus, the gold produced at Casa Berardi is not included as a by-product credit when calculating Cash Cost, After By-product Credits, per Silver Ounce and AISC, After By-product Credits, per Silver 78 Ounce for the total of Greens Creek and Lucky Friday, our combined silver properties.
At Lucky Friday, lead and zinc are considered to be by-products of our silver production, and the values of those metals therefore offset operating costs within our calculations of Cash Cost and AISC, each After By-product Credits, per Silver Ounce.
Cash Cost, After By-product Credits, per Ounce and AISC, After By-product Credits, per Ounce also allow us to benchmark the performance of each of our mines versus those of our competitors.
Suspension-related costs are reported in a separate line item on our consolidated statements of operations and excluded from the calculations of total cost of sales and other direct production costs and depreciation, depletion and amortization, total production costs per ton and Cash Cost and AISC, After By-product Credits, per Gold Ounce. See Item 1A.
The portion of cash costs, sustaining costs, by-product credits, and silver production incurred during the suspension period are excluded 86 from the calculation of total cost of sales, Cash Cost, Before By-product Credits, Cash Cost, After By-product Credits, and AISC, Before By-product Credits, and AISC, After By-product Credits.
Removed
Item 1A. Risk Factors - Our mineral reserve and resource estimates may be imprecise.
Added
Although Casa Berardi generated gross profits during the third and fourth quarter of 2024, it has generated gross losses for the last three years (including 2024) and for eight of the last ten quarters.
Removed
Consolidated Results of Operations Total metal sales for the years ended December 31, 2023, 2022 and 2021, and the approximate variances attributed to differences in metals prices, sales volumes and smelter terms, were as follows: (in thousands) Silver Gold Base metals Less: smelter and refining charges Total sales of products 2021 $ 293,646 $ 362,037 $ 200,723 $ (48,933 ) $ 807,473 Variances - 2022 versus 2021: Price (45,590 ) 676 (3,710 ) (1,270 ) (49,894 ) Volume 17,089 (63,719 ) 9,428 (2,172 ) (39,374 ) Smelter terms (91 ) (84 ) — 402 227 2022 265,054 298,910 206,441 (51,973 ) 718,432 Variances - 2023 versus 2022: Price 19,682 18,044 (2,897 ) (624 ) 34,205 Volume 17,548 (42,343 ) (14,586 ) 148 (39,233 ) Smelter terms — — — 1,540 1,540 2023 $ 302,284 $ 274,611 $ 188,958 $ (50,909 ) $ 714,944 Average market and realized metals prices for 2023, 2022 and 2021 were as follows: Average price for the year ended December 31, 2023 2022 2021 Silver Realized price per ounce $ 23.33 $ 21.53 $ 25.24 London PM Fix ($/ounce) 23.39 21.75 25.17 Gold Realized price per ounce 1,939 1,803 1,796 London PM Fix ($/ounce) 1,943 1,801 1,800 Lead Realized price per pound 1.03 1.01 1.03 LME Final Cash Buyer ($/pound) 0.97 0.98 1.00 Zinc Realized price per pound 1.35 1.41 1.44 LME Final Cash Buyer ($/pound) $ 1.20 $ 1.58 $ 1.36 Average realized prices differ from average market prices primarily because concentrate sales are generally recorded as revenues at the time of shipment at forward prices for the estimated month of settlement, which differ from average market prices.
Added
This lack of profitability, the expected hiatus in future production discussed above, the uncertainty surrounding permitting and pit design and construction, and the time involved to resolve these uncertainties, has caused us to undertake a review of how Casa Berardi fits into the Company's future strategy.
Removed
For 2023 and 2021 we recorded positive price adjustments to provisional settlements of $18.2 million and $9.3 million, respectively, and $20.8 million in net negative price adjustments to provisional settlements in 2022.
Added
While it is possible we may continue down the path towards future production at the Principal and West Mine Crown Pillar pits, we are also examining potential strategic alternatives.
Removed
The price adjustments related to silver, gold, zinc and lead contained in our concentrate sales were partially offset by gains and losses on forward contracts for those metals for each year (see Note 10 of Notes to Consolidated Financial Statements for more information).
Added
Total capital additions decreased by $9.4 million in 2024 compared to 2023 as the prior year contained a significant amount of purchases of new surface fleet equipment as the mine transitioned from an underground to an open pit operation. The majority of 2024 capital expenditures consisted of tailings dam construction costs.
Removed
The gains and losses on these contracts are included in revenues and impact the realized prices for silver, gold, lead and zinc.
Added
The decrease in AISC, After By-product Credits, per Gold Ounce for 2024 compared to 2023 is primarily due to sustaining capital expenditures that were $16.0 million lower, primarily resulting from lower deferred development costs. Corporate Matters Employee Benefit Plans Our defined benefit pension plans, while providing a significant benefit to our employees, have historically represented a significant liability to us.
Removed
Realized prices are calculated by dividing gross revenues for each metal (which include the price adjustments and gains and losses on the forward contracts discussed above) by the payable quantities of each metal included in products sold during the period. 63 Total metals production and sales volumes for each period are shown in the following table: Year Ended December 31, 2023 2022 2021 Silver - Ounces produced 14,342,863 14,182,987 12,887,240 Payable ounces sold 12,955,006 12,311,595 11,633,802 Gold - Ounces produced 151,259 175,807 201,327 Payable ounces sold 141,602 165,818 201,610 Lead - Tons produced 40,347 48,713 43,010 Payable tons sold 35,429 41,423 36,707 Zinc - Tons produced 60,579 64,748 63,617 Payable tons sold 43,050 43,658 43,626 The difference between what we report as “ounces/tons produced” and “payable ounces/tons sold” is attributable to the difference between the quantities of metals contained in our products versus the portion of those metals actually paid for by our customers pursuant to of our sales contract terms.
Added
During 2024, the funded status of our plans assets decreased to $16.3 million at December 31, 2024 from $27.5 million at December 31, 2023. We do not expect to be required to contribute to our defined benefit plans in 2025, but we may choose to do so. See Note 6 of Notes to Consolidated Financial Statements for more information.
Removed
Differences can also arise from inventory changes incidental to shipping schedules, or variances in ore grades which impact the amount of metals contained in concentrates produced and sold.
Added
We periodically examine the defined benefit pension plans and supplemental excess retirement plan for affordability and competitiveness. Income and Mining Taxes Our deferred tax assets and liabilities are measured at the currently enacted tax rates that are expected to apply in years in which they are expected to be paid for or realized.
Removed
Sales, total cost of sales, gross profit (loss), Cash Cost, After By-product Credits, per Ounce (“Cash Cost”) (non-GAAP) and AISC (non-GAAP) at our operating units for 2023, 2022 and 2021 were as follows (in thousands, except for Cash Cost and AISC): Silver Gold Greens Creek Lucky Friday Keno Hill Other (3) Total Silver (2) Casa Berardi Nevada Operations & Other (4) Total Gold 2023: Sales $ 384,504 $ 116,284 $ 35,518 — $ 536,306 $ 177,678 $ 6,243 $ 183,921 Total cost of sales (259,895 ) (84,185 ) (35,518 ) — (379,598 ) (221,341 ) (6,339 ) (227,680 ) Gross profit (loss) $ 124,609 $ 32,099 $ — — $ 156,708 $ (43,663 ) $ (96 ) $ (43,759 ) Cash Cost, After By-product Credits, per Silver or Gold Ounce (1) $ 2.53 $ 5.51 $ 3.23 $ 1,652 $ 1,652 AISC, After By-product Credits, per Silver or Gold Ounce (1) $ 7.14 $ 12.21 $ 11.76 $ 2,048 $ 2,048 2022: Sales $ 335,062 $ 147,814 $ — $ — $ 482,876 $ 235,136 $ 893 $ 236,029 Total cost of sales (232,718 ) (116,598 ) — — (349,316 ) (248,898 ) (4,535 ) (253,433 ) Gross profit (loss) $ 102,344 $ 31,216 $ — $ — $ 133,560 $ (13,762 ) $ (3,642 ) $ (17,404 ) Cash Cost, After By-product Credits, per Silver or Gold Ounce (1) $ 0.70 $ 5.06 $ 2.06 $ 1,478 $ 1,478 AISC, After By-product Credits, per Silver or Gold Ounce (1) $ 5.17 $ 12.86 10.66 $ 1,773 $ 1,773 2021: Sales $ 384,843 $ 131,488 $ — $ 176 $ 516,507 $ 245,152 $ 45,814 $ 290,966 Total cost of sales (213,113 ) (97,538 ) — (247 ) (310,898 ) (229,829 ) (48,945 ) (278,774 ) Gross profit (loss) $ 171,730 $ 33,950 $ — $ (71 ) $ 205,609 $ 15,323 $ (3,131 ) $ 12,192 Cash Cost, After By-product Credits, per Silver or Gold Ounce (1) $ (0.65 ) $ 6.60 $ 1.37 $ 1,125 $ 1,137 $ 1,127 AISC, After By-product Credits, per Silver or Gold Ounce (1) $ 2.70 $ 14.34 $ 8.65 $ 1,359 $ 1,211 $ 1,341 (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) .
Added
Each reporting period we assess the realizability of our tax assets. In assessing the need for a valuation allowance, we evaluate all significant available positive and negative evidence, including historical operating results, estimates of future sources of taxable income, carry-forward periods available, the existence of prudent and feasible tax planning strategies and other relevant factors.
Removed
(2) The calculation of AISC for our consolidated silver properties includes corporate costs for general and administrative expense and sustaining capital and production and related costs and sustaining capital expenditures for Lucky Friday until the suspension of production during August 2023 following an underground fire for the remainder of 2023 64 (3) Includes results for San Sebastian, which was an operating segment prior to 2021.
Added
Our organizational structure requires us to have two U.S. tax groups that do not consolidate. Hecla Mining Company and subsidiaries (“Hecla U.S. Group”) has a net deferred tax liability of $21.7 million at December 31, 2024 compared to a net deferred tax asset of $2.9 million at December 31, 2023.
Removed
While revenue from zinc, lead and gold by-products is significant, we believe that identification of silver as the primary product of Greens Creek, Lucky Friday, and Keno Hill is appropriate because: • 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 the Greens Creek and Lucky Friday units as primary silver producers, based on the original analysis that justified putting the project into production, and the same analysis applies to the Keno Hill unit, and further we 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, Lucky Friday and Keno Hill deposits are massive sulfide deposits containing an unusually high proportion of silver; and • in most of their working areas, Greens Creek, Lucky Friday and Keno Hill utilize selective mining methods in which silver is the metal targeted for highest recovery.
Added
The decrease of $24.6 million is primarily related to utilization of tax loss carryforwards. Klondex Mines Ltd (“Klondex”) is a separate U.S. tax group (“Nevada U.S. Group”) that has a net deferred tax liability of $30.8 million and $30.8 million at December 31, 2024 and 2023, respectively.
Removed
Accordingly, we believe the identification of gold, lead and zinc as by-product credits at Greens Creek, Lucky Friday and Keno Hill is appropriate because of their lower economic value compared to silver and due to the fact that silver is the primary product we intend to produce at those locations.
Added
Our net Canadian deferred tax liability at December 31, 2024 was $57.8 million, a decrease of $16.3 million from the $74.1 million net deferred tax liability at December 31, 2023. The decrease was due to current period activity. Our Mexican net deferred tax asset at December 31, 2024 remains at zero with no change from December 31, 2023.
Removed
In addition, we have not consistently received sufficient revenue from any single by-product metal to warrant classification of such as a co-product. We periodically review our revenues to ensure that reporting of primary products and by-products is appropriate.
Added
The valuation allowance decreased to $11.6 million due to utilization and expiration of deferred tax assets at our operations in Mexico.
Removed
Because for Greens Creek, Lucky Friday and Keno Hill we consider zinc, lead and gold to be by-products of our silver production, the values of these metals offset operating costs within our calculations of Cash Cost, After By-product Credits, per Silver Ounce and AISC, After By-product Credits, per Silver Ounce.
Added
As a result of the Tax Cuts and Jobs Act (“TCJA”) enacted in December 2017, under Internal Revenue Code Section 174, a requirement to capitalize and amortize research and experimental expenditures for tax years beginning after December 31, 2021 is now effective. This modification has not had a material impact.
Removed
We believe the identification of silver as a by-product credit is appropriate at Casa Berardi and the Nevada Operations because of its lower economic value compared to gold and due to the fact that gold is the primary product we intend to produce.
Added
As discussed in Note 7 of Notes to Consolidated Financial Statements , our effective tax rate for 2024 was 46%, reflecting a tax expense of $30.4 million on pre-tax income of $66.2 million, compared to a negative 1% for 2023, reflecting a tax expense of $1.2 million on a pre-tax loss of $83.0 million.
Removed
In addition, we do not receive sufficient revenue from silver at the Casa Berardi or Nevada Operations to warrant classification of such as a co-product.
Added
We are subject to income taxes in the United States and other foreign jurisdictions. The overall effective tax rate will continue to be dependent upon the geographic distribution of our earnings in different jurisdictions, the U.S. deduction for percentage depletion, fluctuation in foreign currency exchange rates and deferred tax asset valuation allowance changes.
Removed
For the year ended December 31, 2023, we reported loss applicable to common stockholders of $84.8 million compared to a loss of $37.9 million and income of $34.5 million in 2022 and 2021, respectively. The following factors contributed to those differences: • Variances in gross profit (loss) at our operations as illustrated in the table above.
Added
As a result, the 2025 effective tax rate could vary significantly from that of 2024.
Removed
See the Greens Creek , Lucky Friday , Keno Hill, Casa Berardi , and Nevada Operations sections below. • General and administrative costs were $42.7 million, $43.4 million and $34.6 million in 2023, 2022 and 2021 respectively.
Added
The other relevant provisions of the TCJA that became effective in 2018 consist of global intangible low-taxed income tax and base erosion and anti-abuse tax; however, these provisions have not had a material impact. 77 Reconciliation of Total Cost of Sales 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) The tables below present reconciliations between the most comparable GAAP measure of total cost of sales to the non-GAAP measures of (i) Cash Cost, Before By-product Credits, (ii) Cash Cost, After By-product Credits, (iii) AISC, Before By-product Credits and (iv) AISC, After By-product Credits for our operations and for the Company for the years ended December 31, 2024, 2023 and 2022.
Removed
The decrease in 2023 of $0.7 million reflects lower incentive compensation accruals compared to 2022 partially offset by annual compensation adjustments effective July 1.
Added
Cash Cost, After By-product Credits, per Ounce and AISC, After By-product Credits, per Ounce are measures developed by precious metals companies (including the Silver Institute and the World Gold Council) in an effort to provide a uniform standard for comparison purposes.
Removed
The increase in 2022 of $8.8 million compared to 2021 reflects the acquisition of Alexco, higher incentive compensation accruals and annual incentive compensation adjustments. • Exploration and pre-development expense was $32.5 million, $46.0 million and $47.9 million in 2023, 2022 and 2021, respectively.
Added
There can be no assurance, however, that these non-GAAP measures as we report them are the same as those reported by other mining companies. Cash Cost, After By-product Credits, per Ounce is an important operating statistic that we utilize to measure each mine's operating performance.
Removed
In 2023 exploration and pre-development expense decreased by $13.5 million as exploration activities were focused primarily at Keno Hill, Casa Berardi, Greens Creek and Nevada Operations, with pre-development activities incurred at the Hatter Graben in Nevada and the Libby Exploration project in Montana. • Provision for closed operations and environmental matters of $7.6 million in 2023 compared to $8.8 million in 2022 and $14.6 million in 2021.
Added
We use AISC, After By-product Credits, per Ounce as a measure of our mines' net cash flow after costs for reclamation and sustaining capital. This is similar to the Cash Cost, After By-product Credits, per Ounce non-GAAP measure we report, but also includes reclamation and sustaining capital costs.
Removed
The decrease in 2023 compared to 2022 of $1.2 million is primarily due to less reclamation activities 65 at Johnny M in 2023 compared to 2022.
Added
Current GAAP measures used in the mining industry, such as cost of goods sold, do not capture all the expenditures incurred to discover, develop and sustain silver and gold production.
Removed
The decrease in 2022 compared to 2021 of $5.8 million is 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. • Ramp-up and suspension costs were $76.3 million, $24.1 million and $23.0 million in 2023, 2022 and 2021, respectively.
Added
As a silver and gold mining company, we also use these statistics on an aggregate basis - aggregating the Greens Creek and Lucky Friday mines to compare our performance with that of other silver mining companies.
Removed
Ramp-up and suspension costs in 2023 include $29.8 million (2022: $2.3 million) related to the ramp up of Keno Hill, $25.5 million related to the suspension of production at Lucky Friday due to the underground fire that occurred in the #2 shaft and $2.2 million at Casa Berardi due its operations being suspended for 20 days in June, due to Quebec wildfires.
Added
Similarly, these statistics are useful in identifying acquisition and investment opportunities as they provide a common tool for measuring the financial performance of other mines with varying geologic, metallurgical and operating characteristics.
Removed
During 2020, San Sebastian and Nevada were placed on care and maintenance and each of 2021, 2022 and 2023 include care and maintenance costs for these sites.
Added
We have not disclosed cost per ounce statistics for the Keno Hill operation as it is in the production ramp-up phase and has not met our definition of commercial production. See above "Consolidated Results of Operations" for our definition of commercial production.
Removed
Year Ended December 31, 2023 2022 2021 Keno Hill $ 29,793 $ 2,254 $ — Lucky Friday 25,548 — — Nevada 16,549 19,743 20,403 Casa Berardi 2,228 — — San Sebastian 2,134 2,117 2,609 Total ramp-up and suspension costs $ 76,252 $ 24,114 $ 23,012 • Other operating income of $1.4 million and expense of $6.3 million and $14.3 million in 2023, 2022 and 2021, respectively.
Added
Determination of when those criteria have been met requires the use of judgment, and our definition of commercial production may differ from that of other mining companies.
Removed
The income in 2023 compared to the expense in 2022 was primarily due to the receipt of $5.9 million in insurance proceeds in May related to an insurance coverage lawsuit. • Fair value adjustments, net resulted in gains of $2.9 million and losses of $4.7 million and $35.8 million in 2023, 2022 and 2021, respectively.
Added
Cash Cost, Before By-product Credits and AISC, Before By-product Credits include all direct and indirect operating cash costs related directly to the physical activities of producing metals, including mining, processing and other plant costs, third-party refining expense, on-site general and administrative costs, royalties and mining production taxes.
Removed
The components for each period are summarized in the following table (in thousands): Year Ended December 31, 2023 2022 2021 Gain (loss) on derivative contracts $ 3,168 $ 844 $ (32,655 ) Unrealized (loss) gain on investments in equity securities (243 ) (5,632 ) (4,295 ) Gain on disposition or exchange of investments — 65 1,158 Total fair value adjustments, net $ 2,925 $ (4,723 ) $ (35,792 ) Prior to November 1, 2021, we did not designate and account for any of our base metal derivative contracts as cash flow hedges for accounting purposes and accordingly any changes in fair value of our base metals derivative contracts were recognized in gain (loss) on derivative contracts.
Added
AISC, Before By-product Credits for each mine also includes reclamation and sustaining capital costs. AISC, Before By-product Credits for our consolidated silver properties also includes corporate costs for general and administrative expense and sustaining capital costs. By-product credits include revenues earned from all metals other than the primary metal produced at each unit.
Removed
Subsequent to November 1, 2021, any gains or losses on base metals derivative contracts designated as cash flow hedges are deferred in other comprehensive income until the transaction occurs. • Net foreign exchange loss of $3.8 million in 2023, compared to a gain of $7.2 million and $0.4 million in 2022 and 2021, respectively, on translation of our monetary assets and liabilities at Casa Berardi, Keno Hill and San Sebastian. • Interest expense of $43.3 million, $42.8 million and $41.9 million in 2023, 2022 and 2021, respectively.
Added
As depicted in the tables below, by-product credits comprise an essential element of our silver unit cost structure, distinguishing our silver operations due to the polymetallic nature of their orebodies.
Removed
The interest in 2023, 2022 and 2021 was primarily related to our Senior Notes with 2023 also including interest expense of $2.8 million on amounts drawn on our revolving credit facility. • Income and mining tax provision of $1.2 million compared to a benefit of $7.6 million and $29.6 million in 2022 and 2021, respectively, with the benefit in 2021 including $58.4 million for a reduction in the valuation allowance for U.S. deferred tax assets.
Added
In addition to the uses described above, Cash Cost, After By-product Credits, per Ounce and AISC, After By-product Credits, per Ounce provide management and investors an indication of operating cash flow, after consideration of the average price received from production.
Removed
See Corporate Matters and Note 7 of Notes to Consolidated Financial Statements for more information. 66 Greens Creek Dollars are in thousands (except per ounce and per ton amounts) Years Ended December 31, 2023 2022 2021 Sales $ 384,504 $ 335,062 $ 384,843 Cost of sales and other direct production costs (205,900 ) (183,807 ) (164,403 ) Depreciation, depletion and amortization (53,995 ) (48,911 ) (48,710 ) Total cost of sales (259,895 ) (232,718 ) (213,113 ) Gross Profit $ 124,609 $ 102,344 $ 171,730 Tons of ore milled 914,796 881,445 841,967 Production: Silver (ounces) 9,731,752 9,741,935 9,243,222 Gold (ounces) 60,896 48,216 46,088 Zinc (tons) 51,496 52,312 53,648 Lead (tons) 19,578 19,480 19,873 Payable metal quantities sold: Silver (ounces) 8,493,040 8,234,010 8,284,551 Gold (ounces) 49,790 35,508 40,149 Zinc (tons) 36,042 34,856 36,581 Lead (tons) 15,247 14,762 15,489 Ore grades: Silver ounces per ton 13.31 13.64 13.51 Gold ounces per ton 0.09 0.08 0.08 Zinc percent 6.35 6.69 7.11 Lead percent 2.60 2.68 2.87 Total production cost per ton $ 204.20 $ 196.73 $ 177.30 Cash Cost, After By-product Credits, per Silver Ounce (1) $ 2.53 $ 0.70 $ (0.65 ) AISC, After By-Product Credits, per Silver Ounce (1) $ 7.14 $ 5.17 $ 2.70 Capital additions $ 43,542 $ 36,898 $ 23,883 (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) .
Added
We also use these measurements for the comparative monitoring of performance of our mining operations period-to-period from a cash flow perspective.
Removed
At Greens Creek, gold, zinc and lead are considered to be by-products of our silver production, and the values of those metals therefore offset operating costs within our calculations of Cash Cost and AISC, After By-product Credits, per Silver Ounce.
Added
Only costs and ounces produced relating to units with the same primary product are combined to represent Cash Cost, After By-product Credits, per Ounce and AISC, After By-product Credits, per Ounce.
Removed
Gross profit increased by $22.3 million to $124.6 million in 2023 from $102.3 million in 2022, as higher realized prices for all metals sold other than zinc and higher payable metal quantities for all metals sold compared to 2022, was offset by higher production costs reflecting more tons milled, and related higher labor, maintenance and consumables costs. See Item 1A.
Added
Similarly, the silver produced at our other three units is not included as a by-product credit when calculating the gold metrics for Casa Berardi In thousands (except per ounce amounts) Year Ended December 31, 2024 Greens Creek Lucky Friday Keno Hill Corporate (2) Total Silver Total cost of sales $ 268,127 $ 144,485 $ 74,962 $ — $ 487,574 Depreciation, depletion and amortization (53,450 ) (41,049 ) (16,136 ) — (110,635 ) Treatment costs 26,266 14,456 — — 40,722 Change in product inventory (5,858 ) 2,090 — — (3,768 ) Reclamation and other costs (4,481 ) (2,806 ) — — (7,287 ) Exclusion of Lucky Friday cash costs (8) — (3,634 ) — — (3,634 ) Exclusion of Keno Hill cash costs (6) — — (58,826 ) — (58,826 ) Cash Cost, Before By-product Credits (1) 230,604 113,542 — — 344,146 Reclamation 3,141 891 — — 4,032 Sustaining capital 45,214 44,864 — 1,532 91,610 Exclusion of Lucky Friday sustaining costs (8) — (5,396 ) — — (5,396 ) General and administrative — — — 45,405 45,405 AISC, Before By-product Credits (1) 278,959 153,901 — 46,937 479,797 By-product credits: Zinc (89,088 ) (26,244 ) — — (115,332 ) Gold (115,189 ) — — — (115,189 ) Lead (26,374 ) (55,042 ) — — (81,416 ) Copper (409 ) — — — (409 ) Exclusion of Lucky Friday by-product credits (8) — 3,943 — — 3,943 Total By-product credits (231,060 ) (77,343 ) — — (308,403 ) Cash Cost, After By-product Credits $ (456 ) $ 36,199 $ — $ — $ 35,743 AISC, After By-product Credits $ 47,899 $ 76,558 $ — $ 46,937 $ 171,394 Ounces produced 8,481 4,891 13,372 Exclusion of Lucky Friday ounces produced (8) — (253 ) (253 ) Divided by silver ounces produced 8,481 4,638 13,119 Cash Cost, Before By-product Credits, per Silver Ounce $ 27.19 $ 24.48 $ 26.23 By-product credits per ounce (27.24 ) (16.68 ) (23.51 ) Cash Cost, After By-product Credits, per Silver Ounce $ (0.05 ) $ 7.80 $ 2.72 AISC, Before By-product Credits, per Silver Ounce $ 32.89 $ 33.18 $ 36.57 By-product credits per ounce (27.24 ) (16.68 ) (23.51 ) AISC, After By-product Credits, per Silver Ounce $ 5.65 $ 16.50 $ 13.06 79 In thousands (except per ounce amounts) Year Ended December 31, 2024 Casa Berardi Other (4) Total Gold and Other Total cost of sales $ 223,614 $ 20,527 $ 244,141 Depreciation, depletion and amortization (72,835 ) — (72,835 ) Treatment costs 153 — 153 Change in product inventory 3,269 — 3,269 Reclamation and other costs (823 ) — (823 ) Exclusion of Other costs — (20,527 ) (20,527 ) Cash Cost, Before By-product Credits (1) 153,378 — 153,378 Reclamation and other costs 823 — 823 Sustaining capital 18,963 — 18,963 AISC, Before By-product Credits (1) 173,164 — 173,164 By-product credits: Silver (683 ) — (683 ) Total By-product credits (683 ) — (683 ) Cash Cost, After By-product Credits $ 152,695 $ — $ 152,695 AISC, After By-product Credits $ 172,481 $ — $ 172,481 Divided by gold ounces produced 87 87 Cash Cost, Before By-product Credits, per Gold Ounce $ 1,770 $ — $ 1,770 By-product credits per ounce (8 ) — (8 ) Cash Cost, After By-product Credits, per Gold Ounce $ 1,762 $ — $ 1,762 AISC, Before By-product Credits, per Gold Ounce $ 1,998 $ — $ 1,998 By-product credits per ounce (8 ) — (8 ) AISC, After By-product Credits, per Gold Ounce $ 1,990 $ — $ 1,990 80 In thousands (except per ounce amounts) Year Ended December 31, 2024 Total Silver Total Gold and Other Total Total cost of sales $ 487,574 $ 244,141 $ 731,715 Depreciation, depletion and amortization (110,635 ) (72,835 ) (183,470 ) Treatment costs 40,722 153 40,875 Change in product inventory (3,768 ) 3,269 (499 ) Reclamation and other costs (7,287 ) (823 ) (8,110 ) Exclusion of Lucky Friday cash costs (8) (3,634 ) — (3,634 ) Exclusion of Keno Hill cash costs (6) (58,826 ) — (58,826 ) Exclusion of Nevada and Other costs — (20,527 ) (20,527 ) Cash Cost, Before By-product Credits (1) 344,146 153,378 497,524 Reclamation and other costs 4,032 823 4,855 Sustaining capital 91,610 18,963 110,573 Exclusion of Lucky Friday sustaining costs (8) (5,396 ) — (5,396 ) General and administrative 45,405 — 45,405 AISC, Before By-product Credits (1) 479,797 173,164 652,961 By-product credits: Zinc (115,332 ) — (115,332 ) Gold (115,189 ) — (115,189 ) Lead (81,416 ) — (81,416 ) Copper (409 ) — (409 ) Silver — (683 ) (683 ) Exclusion of Lucky Friday by-product credits (8) 3,943 — 3,943 Total By-product credits (308,403 ) (683 ) (309,086 ) Cash Cost, After By-product Credits $ 35,743 $ 152,695 $ 188,438 AISC, After By-product Credits $ 171,394 $ 172,481 $ 343,875 Ounces produced $ 13,372 $ 87 Exclusion of Lucky Friday ounces produced (8) (253 ) — Divided by ounces produced 13,119 87 Cash Cost, Before By-product Credits, per Ounce $ 26.23 $ 1,770 By-product credits per ounce (23.51 ) (8 ) Cash Cost, After By-product Credits, per Ounce $ 2.72 $ 1,762 AISC, Before By-product Credits, per Ounce $ 36.57 $ 1,998 By-product credits per ounce (23.51 ) (8 ) AISC, After By-product Credits, per Ounce $ 13.06 $ 1,990 81 In thousands (except per ounce amounts) Year Ended December 31, 2023 Greens Creek Lucky Friday Keno Hill Corporate (2) Total Silver Total cost of sales $ 259,895 $ 84,185 $ 35,518 $ — $ 379,598 Depreciation, depletion and amortization (53,995 ) (24,325 ) (4,277 ) — (82,597 ) Treatment costs 40,987 10,981 1,070 — 53,038 Change in product inventory (4,266 ) (5,164 ) — — (9,430 ) Reclamation and other costs (5) (748 ) (826 ) — — (1,574 ) Exclusion of Lucky Friday cash costs (8) — (851 ) — — (851 ) Exclusion of Keno Hill cash costs — — (32,311 ) — (32,311 ) Cash Cost, Before By-product Credits (1) 241,873 64,000 — — 305,873 Reclamation and other costs 2,889 671 — — 3,560 Sustaining capital 41,935 39,019 — 928 81,882 Exclusion of Lucky Friday sustaining costs (8) — (19,702 ) — — (19,702 ) General and administrative (5) — — — 42,722 42,722 AISC, Before By-product Credits (1) 286,697 83,988 — 43,650 414,335 By-product credits: Zinc (83,454 ) (14,507 ) — — (97,961 ) Gold (104,507 ) — — — (104,507 ) Lead (29,284 ) (34,620 ) — — (63,904 ) Exclusion of Lucky Friday by-product credits (8) — 1,566 — — 1,566 Total By-product credits (217,245 ) (47,561 ) — (264,806 ) Cash Cost, After By-product Credits $ 24,628 $ 16,439 $ — $ 41,067 AISC, After By-product Credits $ 69,452 $ 36,427 $ 43,650 $ 149,529 Ounces produced 9,732 3,086 12,818 Exclusion of Lucky Friday ounces produced (8) — (103 ) (103 ) Divided by silver ounces produced 9,732 2,983 12,715 Cash Cost, Before By-product Credits, per Silver Ounce $ 24.85 $ 21.45 $ 24.06 By-product credits per ounce (22.32 ) (15.94 ) (20.83 ) Cash Cost, After By-product Credits, per Silver Ounce $ 2.53 $ 5.51 $ 3.23 AISC, Before By-product Credits, per Silver Ounce $ 29.46 $ 28.15 $ 32.59 By-product credits per ounce (22.32 ) (15.94 ) (20.83 ) AISC, After By-product Credits, per Silver Ounce $ 7.14 $ 12.21 $ 11.76 82 In thousands (except per ounce amounts) Year Ended December 31, 2023 Casa Berardi Other (4) Total Gold and Other Total cost of sales $ 221,341 $ 6,339 $ 227,680 Depreciation, depletion and amortization (66,037 ) (140 ) (66,177 ) Treatment costs 1,109 — 1,109 Change in product inventory (2,913 ) — (2,913 ) Reclamation and other costs (5) (871 ) — (871 ) Exclusion of Casa Berardi cash costs (3) (2,851 ) — (2,851 ) Exclusion of Nevada and Other costs — (6,199 ) (6,199 ) Cash Cost, Before By-product Credits (1) 149,778 — 149,778 Reclamation and other costs 871 — 871 Sustaining capital 34,971 — 34,971 AISC, Before By-product Credits (1) 185,620 — 185,620 By-product credits: Silver (522 ) — (522 ) Total By-product credits (522 ) — (522 ) Cash Cost, After By-product Credits $ 149,256 $ — $ 149,256 AISC, After By-product Credits $ 185,098 $ — $ 185,098 Divided by gold ounces produced 90 — 90 Cash Cost, Before By-product Credits, per Gold Ounce $ 1,658 — $ 1,658 By-product credits per ounce (6 ) — (6 ) Cash Cost, After By-product Credits, per Gold Ounce $ 1,652 $ — $ 1,652 AISC, Before By-product Credits, per Gold Ounce $ 2,054 — $ 2,054 By-product credits per ounce (6 ) — (6 ) AISC, After By-product Credits, per Gold Ounce $ 2,048 $ — $ 2,048 83 In thousands (except per ounce amounts) Year Ended December 31, 2023 Total Silver Total Gold and Other Total Total cost of sales $ 379,598 $ 227,680 $ 607,278 Depreciation, depletion and amortization (82,597 ) (66,177 ) (148,774 ) Treatment costs 53,038 1,109 54,147 Change in product inventory (9,430 ) (2,913 ) (12,343 ) Reclamation and other costs (1,574 ) (871 ) (2,445 ) Exclusion of Lucky Friday cash costs (8) (851 ) — (851 ) Exclusion of Keno Hill cash costs (32,311 ) — (32,311 ) Exclusion of Casa Berardi cash costs (3) — (2,851 ) (2,851 ) Exclusion of Nevada and Other costs — (6,199 ) (6,199 ) Cash Cost, Before By-product Credits (1) 305,873 149,778 455,651 Reclamation and other costs 3,560 871 4,431 Sustaining capital 81,882 34,971 116,853 Exclusion of Lucky Friday sustaining costs (8) (19,702 ) — (19,702 ) General and administrative 42,722 — 42,722 AISC, Before By-product Credits (1) 414,335 185,620 599,955 By-product credits: Zinc (97,961 ) — (97,961 ) Gold (104,507 ) — (104,507 ) Lead (63,904 ) — (63,904 ) Silver — (522 ) (522 ) Exclusion of Lucky Friday by-product credits (8) 1,566 — 1,566 Total By-product credits (264,806 ) (522 ) (265,328 ) Cash Cost, After By-product Credits $ 41,067 $ 149,256 $ 190,323 AISC, After By-product Credits $ 149,529 $ 185,098 $ 334,627 Divided by ounces produced 12,818 90 Exclusion of Lucky Friday ounces produced (8) (103 ) — Divided by silver ounces produced 12,715 90 Cash Cost, Before By-product Credits, per Ounce $ 24.06 $ 1,658 By-product credits per ounce (20.83 ) (6 ) Cash Cost, After By-product Credits, per Ounce $ 3.23 $ 1,652 AISC, Before By-product Credits, per Ounce $ 32.59 $ 2,054 By-product credits per ounce (20.83 ) (6 ) AISC, After By-product Credits, per Ounce $ 11.76 $ 2,048 84 In thousands (except per ounce amounts) Year Ended December 31, 2022 Greens Creek Lucky Friday Corporate (2) Total Silver Total cost of sales $ 232,718 $ 116,598 $ — $ 349,316 Depreciation, depletion and amortization (48,911 ) (33,704 ) — (82,615 ) Treatment costs 37,836 18,605 — 56,441 Change in product inventory 5,885 2,049 — 7,934 Reclamation and other costs (1,489 ) (1,034 ) — (2,523 ) Cash Cost, Before By-product Credits (1) 226,039 102,514 — 328,553 Reclamation and other costs 2,821 1,128 — 3,949 Sustaining capital 40,705 33,306 334 74,345 General and administrative (5) — — 43,384 43,384 AISC, Before By-product Credits (1) 269,565 136,948 43,718 450,231 By-product credits: Zinc (113,835 ) (27,607 ) — (141,442 ) Gold (75,596 ) — — (75,596 ) Lead (29,800 ) (52,568 ) — (82,368 ) Total By-product credits (219,231 ) (80,175 ) — (299,406 ) Cash Cost, After By-product Credits $ 6,808 $ 22,339 $ — $ 29,147 AISC, After By-product Credits $ 50,334 $ 56,773 $ 43,718 $ 150,825 Divided by silver ounces produced 9,742 4,413 14,155 Cash Cost, Before By-product Credits, per Silver Ounce $ 23.20 $ 23.23 $ 23.21 By-product credits per ounce (22.50 ) $ (18.17 ) (21.15 ) Cash Cost, After By-product Credits, per Silver Ounce $ 0.70 $ 5.06 $ 2.06 AISC, Before By-product Credits, per Silver Ounce $ 27.67 $ 31.03 $ 31.81 By-product credits per ounce (22.50 ) $ (18.17 ) (21.15 ) AISC, After By-product Credits, per Silver Ounce $ 5.17 $ 12.86 $ 10.66 In thousands (except per ounce amounts) Year Ended December 31, 2022 Casa Berardi Other (4) Total Gold and Other Total cost of sales $ 248,898 $ 4,535 $ 253,433 Depreciation, depletion and amortization (60,962 ) (361 ) (61,323 ) Treatment costs 1,866 — 1,866 Change in product inventory 186 — 186 Reclamation and other costs (819 ) — (819 ) Exclusion of Nevada and Other costs — (4,174 ) (4,174 ) Cash Cost, Before By-product Credits (1) 189,169 — 189,169 Reclamation and other costs 819 — 819 Sustaining capital 36,883 — 36,883 AISC, Before By-product Credits (1) 226,871 — 226,871 By-product credits: Silver (610 ) — (610 ) Total By-product credits (610 ) — (610 ) Cash Cost, After By-product Credits $ 188,559 $ — $ 188,559 AISC, After By-product Credits $ 226,261 $ — $ 226,261 Divided by gold ounces produced 128 — 128 Cash Cost, Before By-product Credits, per Gold Ounce $ 1,483 $ — $ 1,483 By-product credits per ounce (5 ) — (5 ) Cash Cost, After By-product Credits, per Gold Ounce $ 1,478 $ — $ 1,478 AISC, Before By-product Credits, per Gold Ounce $ 1,778 $ — $ 1,778 By-product credits per ounce (5 ) — (5 ) AISC, After By-product Credits, per Gold Ounce $ 1,773 $ — $ 1,773 85 In thousands (except per ounce amounts) Year Ended December 31, 2022 Total Silver Total Gold Total Total cost of sales $ 349,316 $ 253,433 $ 602,749 Depreciation, depletion and amortization (82,615 ) (61,323 ) (143,938 ) Treatment costs 56,441 1,866 58,307 Change in product inventory 7,934 186 8,120 Exclusion of Nevada and Other Costs — (4,174 ) (4,174 ) Reclamation and other costs (2,523 ) (819 ) (3,342 ) Cash Cost, Before By-product Credits (1) 328,553 189,169 517,722 Reclamation and other costs 3,949 819 4,768 Sustaining capital 74,345 36,883 111,228 General and administrative 43,384 — 43,384 AISC, Before By-product Credits (1) 450,231 226,871 677,102 By-product credits: Zinc (141,442 ) — (141,442 ) Gold (75,596 ) — (75,596 ) Lead (82,368 ) — (82,368 ) Silver — (610 ) (610 ) Total By-product credits (299,406 ) (610 ) (300,016 ) Cash Cost, After By-product Credits $ 29,147 $ 188,559 $ 217,706 AISC, After By-product Credits $ 150,825 $ 226,261 $ 377,086 Divided by ounces produced 14,155 128 Cash Cost, Before By-product Credits, per Ounce $ 23.21 $ 1,483 By-product credits per ounce (21.15 ) (5 ) Cash Cost, After By-product Credits, per Ounce $ 2.06 $ 1,478 AISC, Before By-product Credits, per Ounce $ 31.81 $ 1,778 By-product credits per ounce (21.15 ) (5 ) AISC, After By-product Credits, per Ounce $ 10.66 $ 1,773 (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.
Removed
Risk Factors - Our profitability could be affected by inflation, including the prices of other commodities for a discussion of certain risks related to our operations profitability.
Added
AISC, Before By-product Credits also includes reclamation and sustaining capital costs. (2) AISC, Before By-product Credits for our consolidated silver properties includes corporate costs for general and administrative expense and sustaining capital.
Removed
Gross profit decreased by $69.4 million to $102.3 million in 2022 from $171.7 million in 2021, as lower realized prices for all metals sold other than gold, and lower payable metal quantities sold compared to 2021, was further compounded by higher production costs reflecting inflationary pressures and more tons milled, and unfavorable changes in concentrate smelter terms. 67 Capital additions increased by $6.6 million in 2023 to $43.5 million compared to 2022.
Added
(3) During the three months ended March 31, 2023, the Company completed the necessary studies to conclude usage of the F-160 pit as a tailings storage facility after mining is complete. As a result, a portion of the mining costs have been excluded from Cash Cost, Before By-product Credits and AISC, Before By-product Credits.
Removed
Significant components of the 2023 capital additions were development of $19.4 million, $9.8 million in mobile equipment, and $1.6 million in claims purchases .
Added
(5) Prior years presentation has been adjusted to conform with current year presentation to eliminate exploration costs from the calculation of AISC, Before By-product Credits as exploration is an activity directed at the Corporate level to find new mineral reserve and resource deposits, and therefore we believe it is inappropriate to include exploration costs in the calculation of AISC, Before By-product Credits for a specific mining operation.
Removed
The chart below illustrates the factors contributing to the variances in Cash Cost, After By-product Credits, Per Silver Ounce for 2023 compared to 2022 and 2021: The following table summarizes the components of Cash Cost, After By-product Credits, per Silver Ounce: Years Ended December 31, 2023 2022 2021 Cash Cost, Before By-product Credits, per Silver Ounce $ 24.85 $ 23.20 $ 21.33 By-product credits per silver ounce (22.32 ) (22.50 ) (21.98 ) Cash Cost, After By-product Credits, per Silver Ounce $ 2.53 $ 0.70 $ (0.65 ) The following table summarizes the components of AISC, After By-product Credits, per Silver Ounce: Years Ended December 31, 2023 2022 2021 AISC, Before By-product Credits, per Silver Ounce $ 29.46 $ 27.67 $ 24.68 By-product credits per silver ounce (22.32 ) (22.50 ) (21.98 ) AISC, After By-product Credits, per Silver Ounce $ 7.14 $ 5.17 $ 2.70 The increase in Cash Cost and AISC, each After By-product Credits, per Silver Ounce in 2023 compared to 2022 was primarily due to higher production costs related to labor, maintenance and consumables and lower by-product credits .

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

1 edited+0 added−2 removed0 unchanged
Biggest changeItem 1C. Cybersecurity 33 Item 2. Propert ies 34 Summary 35 Greens Creek 41 Lucky Friday 46 Keno Hill 50 Casa Berardi 55 Internal Controls 57 Item 3. Legal Proceedings 58 Item 4. Mine Safety Disclosures 58 PART II 59 Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 59 Item 6.
Biggest changeItem 1C. Cybersecurity 33 Item 2. Propert ies 34 Summary 35 Greens Creek 42 Lucky Friday 48 Keno Hill 53 Casa Berardi 57 Internal Controls 60 Item 3. Legal Proceedings 60 Item 4. Mine Safety Disclosures 60 PART II 61
Removed
Management’s Discussion and Analysis of Financial Condition and Results of Operations 61 Overview 61 Results of Operations 63 Greens Creek 67 Lucky Friday 69 Keno Hill 71 Casa Berardi 72 Nevada Operations 74 Corporate Matters 74 Reconciliation of Total Cost of Sales 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) 75 Financial Liquidity and Capital Resources 82 Contractual Obligations and Contingent Liabilities and Commitments 85 i Critical Accounting Estimates 86 New Accounting Pronouncements 88 Guarantor Subsidiaries 89 Forward-Looking Statements 91 Item 7A.
Removed
Quantitative and Qualitative Disclosures About Market Risk 91 Provisional Sales 91 Commodity-Price Risk Management 92 Foreign Currency 93 Item 8. Financial Statements and Supplementary Data 94

Item 2. Properties

Properties — owned and leased real estate

71 edited+73 added−10 removed43 unchanged
Biggest changeThe following table summarizes the in-situ mineral resources (8) for all properties, exclusive of mineral reserves, as of December 31, 2023: Asset Tons (000) Silver (oz/ton) Gold (oz/ton) Lead % Zinc % Copper % Silver (000 oz) Gold (000 oz) Lead Tons Zinc Tons Copper Tons Measured Resources: (9) Greens Creek (12,13) — — — — — — — — — — — Lucky Friday (12,14) 5,326 8.6 — 5.6 2.7 — 45,785 — 299,360 146,420 — Casa Berardi Underground (12,15) 1,099 — 0.21 — — — — 234 — — — Casa Berardi Open Pit (12,15) 67 — 0.03 — — — — 2 — — — Keno Hill (12,16) — — — — — — — — — — — San Sebastian - Oxide (17) — — — — — — — — — — — San Sebastian - Sulfide (17) — — — — — — — — — — — Fire Creek (18,19) — — — — — — — — — — — Hollister (18,20) 18 4.9 0.59 — — — 87 10 — — — Midas (18,21) 2 7.6 0.68 — — — 14 1 — — — Heva (22) — — — — — — — — — — — Hosco (22) — — — — — — — — — — — Star (12,23) — — — — — — — — — — — Tiger Underground (29) 881 — 0.09 — — — — 75 — — — Tiger Open Pit (29) 32 — 0.06 — — — — 2 — — — Osiris Underground (30) — — — — — — — — — — — Osiris Open Pit (30) — — — — — — — — — — — Total Measured 7,425 45,886 324 299,360 146,420 — Tons (000) Silver (oz/ton) Gold (oz/ton) Lead% Zinc% Copper% Silver (000 oz) Gold (000 oz) Lead Tons Zinc Tons Copper Tons Indicated Resources: (10) Greens Creek (12,13) 8,040 13.9 0.10 3.0 8.0 — 111,526 800 239,250 643,950 — Lucky Friday (12,14) 1,011 8.0 — 6.0 2.7 — 8,136 — 60,200 26,910 — Casa Berardi Underground (12,15) 3,154 — 0.19 — — — — 603 — — — Casa Berardi Open Pit (12,15) 205 — 0.03 — — — — 5 — — — Keno Hill (12,16) 4,504 7.5 0.006 0.9 3.5 — 33,926 26 41,120 157,350 — San Sebastian - Oxide (17) 1,453 6.5 0.09 — — — 9,430 135 — — — San Sebastian - Sulfide (17) 1,187 5.5 0.01 1.9 2.9 1.2 6,579 16 22,420 34,100 14,650 Fire Creek (18,19) 114 1.0 0.46 — — — 113 53 — — — Hollister (18,20) 70 1.9 0.58 — — — 130 40 — — — Midas (18,21) 76 5.7 0.42 — — — 430 32 — — — Heva (22) 1,266 — 0.06 — — — — 76 — — — Hosco (22) 29,287 — 0.04 — — — — 1,202 — — — Star (12,23) 1,068 3.0 — 6.4 7.7 — 3,177 — 67,970 82,040 — Tiger Underground (29) 3,116 — 0.10 — — — — 311 — — — Tiger Open Pit (29) 960 — 0.08 — — — — 76 — — — Osiris Underground (30) 5,135 — 0.12 — — — — 604 — — — Osiris Open Pit (30) 960 — 0.13 — — — — 128 — — — Total Indicated 61,606 173,447 4,107 430,960 944,350 14,650 Tons (000) Silver (oz/ton) Gold (oz/ton) Lead % Zinc % Copper % Silver (000 oz) Gold (000 oz) Lead Tons Zinc Tons Copper Tons Measured and Indicated Resources: Greens Creek (12,13) 8,040 13.9 0.10 3.0 8.0 — 111,526 800 239,250 643,950 — Lucky Friday (12,14) 6,337 8.3 — 5.8 2.7 — 53,921 — 359,560 173,330 — Casa Berardi Underground (12,15) 4,253 — 0.20 — — — — 837 — — — Casa Berardi Open Pit (12,15) 272 — 0.03 — — — — 7 — — — Keno Hill (12,16) 4,504 7.5 0.006 0.9 3.5 — 33,926 26 41,120 157,350 — San Sebastian - Oxide (17) 1,453 6.5 0.09 — — — 9,430 135 — — — San Sebastian - Sulfide (17) 1,187 5.5 0.01 1.9 2.9 1.2 6,579 16 22,420 34,100 14,650 Fire Creek (18,19) 114 1.0 0.46 — — — 113 53 — — — Hollister (18,20) 88 2.5 0.58 — — — 217 50 — — — Midas (18,21) 78 5.7 0.43 — — — 444 33 — — — Heva (22) 1,266 — 0.06 — — — — 76 — — — Hosco (22) 29,287 — 0.04 — — — — 1,202 — — — Star (12,23) 1,068 3.0 — 6.4 7.7 — 3,177 — 67,970 82,040 — Tiger Underground (29) 3,997 — 0.10 — — — — 386 — — — Tiger Open Pit (29) 992 — 0.08 — — — — 78 — — — Osiris Underground (30) 5,135 — 0.12 — — — — 604 — — — Osiris Open Pit (30) 960 — 0.13 — — — — 128 — — — Total Measured and Indicated 69,031 219,333 4,431 730,320 1,090,770 14,650 Tons (000) Silver (oz/ton) Gold (oz/ton) Lead % Zinc % Copper % Silver (000 oz) Gold (000 oz) Lead Tons Zinc Tons Copper Tons Inferred Resources: (11) Greens Creek (12,13) 1,930 13.4 0.08 2.9 6.9 — 25,891 154 55,890 133,260 — Lucky Friday (12,14) 3,600 7.8 — 5.9 2.8 — 27,934 — 211,340 100,630 — Casa Berardi Underground (12,15) 1,475 — 0.22 — — — — 332 — — — Casa Berardi Open Pit (12,15) 828 — 0.08 — — — — 64 — — — Keno Hill (12,16) 2,836 11.2 0.003 1.1 1.8 — 31,791 9 32,040 51,870 — San Sebastian - Oxide (17) 3,490 6.4 0.05 — — — 22,353 182 — — — San Sebastian - Sulfide (17) 385 4.2 0.01 1.6 2.3 0.9 1,606 5 6,070 8,830 3,330 Fire Creek (18,19) 764 0.5 0.51 — — — 393 392 — — — Fire Creek - Open Pit (24) 74,584 0.1 0.03 — — — 5,232 2,178 — — — Hollister (18,20) 642 3.0 0.42 — — — 1,916 273 — — — 39 Midas (18,21) 1,232 6.3 0.50 — — — 7,723 615 — — — Heva (22) 2,787 — 0.08 — — — — 216 — — — Hosco (22) 17,726 — 0.04 — — — — 663 — — — Star (12,23) 2,851 3.1 — 5.9 5.9 — 8,795 — 168,180 166,930 — San Juan Silver (12,25) 2,570 14.9 0.01 1.4 1.1 — 38,203 34 49,400 39,850 — Monte Cristo (26) 913 0.3 0.14 — — — 271 131 — — — Rock Creek (12,27) 100,086 1.5 — — — 0.7 148,736 — — — 658,680 Libby Exploration (12,28) 112,185 1.6 — — — 0.7 183,346 — — — 759,420 Tiger Underground (29) 30 — 0.05 — — — — 2 — — — Tiger Open Pit (29) 152 — 0.07 — — — — 10 — — — Osiris Underground (30) 5,919 — 0.09 — — — — 530 — — — Osiris Open Pit (30) 4,398 — 0.12 — — — — 514 — — — Total Inferred 341,383 504,190 6,304 522,920 501,370 1,421,430 (8) The term "mineral resources" means a concentration or occurrence of material of economic interest in or on the Earth's crust in such form, grade or quality, and quantity that there are reasonable prospects for economic extraction.
Biggest changeThe following table summarizes the in-situ mineral resources (8) for all properties, exclusive of mineral reserves, as of December 31, 2024: 39 Asset Tons (000) Silver (oz/ton) Gold (oz/ton) Lead % Zinc % Copper % Silver (000 oz) Gold (000 oz) Lead Tons Zinc Tons Copper Tons Measured Resources: (9) Greens Creek (12,13) — — — — — — — — — — — Lucky Friday (12,14) 3,781 8.7 — 5.8 2.6 — 32,795 — 217,490 99,840 — Casa Berardi Underground (12,15) 1,486 — 0.20 — — — — 300 — — — Casa Berardi Open Pit (12,15) 84 — 0.03 — — — — 3 — — — Keno Hill (12,16) — — — — — — — — — — — San Sebastian - Oxide (17) — — — — — — — — — — — San Sebastian - Sulfide (17) — — — — — — — — — — — Fire Creek (18,19) — — — — — — — — — — — Hollister (18,20) 19 4.7 0.57 — — — 88 11 — — — Midas (18,21) 2 7.1 0.62 — — — 15 1 — — — Heva (22) — — — — — — — — — — — Hosco (22) — — — — — — — — — — — Star (12,23) — — — — — — — — — — — Rackla - Tiger Underground (29) 32 — 0.06 — — — — 2 — — — Rackla - Tiger Open Pit (29) 881 — 0.09 — — — — 75 — — — Rackla - Osiris Underground (30) — — — — — — — — — — — Rackla - Osiris Open Pit (30) — — — — — — — — — — — Total Measured 6,285 32,898 392 217,490 99,840 — Tons (000) Silver (oz/ton) Gold (oz/ton) Lead% Zinc% Copper% Silver (000 oz) Gold (000 oz) Lead Tons Zinc Tons Copper Tons Indicated Resources: (10) Greens Creek (12,13) 7,619 14.1 0.10 3.0 8.0 — 107,226 760 227,360 607,600 — Lucky Friday (12,14) 845 8.7 — 6.6 2.3 — 7,350 — 55,890 19,700 — Casa Berardi Underground (12,15) 3,522 — 0.17 — — — — 594 — — — Casa Berardi Open Pit (12,15) 126 — 0.03 — — — — 4 — — — Keno Hill (12,16) 1,050 13.7 0.01 1.1 2.1 — 14,431 12 11,610 22,460 — San Sebastian - Oxide (17) 1,233 6.6 0.10 — — — 8,146 121 — — — San Sebastian - Sulfide (17) 1,164 5.3 0.01 2.0 3.1 1.3 6,211 15 23,500 35,900 15,240 Fire Creek (18,19) 197 0.8 0.37 — — — 162 73 — — — Hollister (18,20) 74 1.8 0.56 — — — 134 41 — — — Midas (18,21) 95 5.4 0.40 — — — 514 38 — — — Heva (22) 1,208 — 0.05 — — — — 62 — — — Hosco (22) 32,152 — 0.03 — — — — 1,097 — — — Star (12,23) 834 3.4 — 7.2 8.5 — 2,820 — 60,120 70,450 — Rackla - Tiger Underground (29) 960 — 0.08 — — — — 76 — — — Rackla - Tiger Open Pit (29) 3,116 — 0.10 — — — — 311 — — — Rackla - Osiris Underground (30) 927 — 0.13 — — — — 123 — — — Rackla - Osiris Open Pit (30) 4,843 — 0.12 — — — — 577 — — — Total Indicated 59,965 146,994 3,904 378,480 756,110 15,240 Tons (000) Silver (oz/ton) Gold (oz/ton) Lead % Zinc % Copper % Silver (000 oz) Gold (000 oz) Lead Tons Zinc Tons Copper Tons Measured and Indicated Resources: Greens Creek (12,13) 7,619 14.1 0.10 3.0 8.0 — 107,226 760 227,360 607,600 — Lucky Friday (12,14) 4,627 8.7 — 6.2 2.5 — 40,145 — 273,380 119,540 — Casa Berardi Underground (12,15) 5,007 — 0.18 — — — — 895 — — — Casa Berardi Open Pit (12,15) 210 — 0.03 — — — — 6 — — — Keno Hill (12,16) 1,050 13.7 0.01 1.1 2.1 — 14,431 12 11,610 22,460 — San Sebastian - Oxide (17) 1,233 6.6 0.10 — — — 8,146 121 — — — San Sebastian - Sulfide (17) 1,164 5.3 0.01 2.0 3.1 1.3 6,211 15 23,500 35,900 15,240 Fire Creek (18,19) 197 0.8 0.37 — — — 162 73 — — — Hollister (18,20) 93 2.4 0.56 — — — 223 52 — — — Midas (18,21) 97 5.5 0.40 — — — 529 39 — — — Heva (22) 1,208 — 0.05 — — — — 62 — — — Hosco (22) 32,152 — 0.03 — — — — 1,097 — — — Star (12,23) 834 3.4 — 7.2 8.5 — 2,820 — 60,120 70,450 — Rackla - Tiger Underground (29) 991 — 0.08 — — — — 78 — — — Rackla - Tiger Open Pit (29) 3,997 — 0.10 — — — — 386 — — — Rackla - Osiris Underground (30) 927 — 0.13 — — — — 123 — — — Rackla - Osiris Open Pit (30) 4,843 — 0.12 — — — — 577 — — — 40 Total Measured and Indicated 66,249 179,893 4,296 595,970 855,950 15,240 Tons (000) Silver (oz/ton) Gold (oz/ton) Lead % Zinc % Copper % Silver (000 oz) Gold (000 oz) Lead Tons Zinc Tons Copper Tons Inferred Resources: (11) Greens Creek (12,13) 1,878 13.4 0.08 2.9 6.9 — 25,106 151 54,010 130,120 — Lucky Friday (12,14) 3,811 10.3 — 7.7 3.2 — 39,183 — 293,010 121,710 — Casa Berardi Underground (12,15) 2,076 — 0.20 — — — — 408 — — — Casa Berardi Open Pit (12,15) 577 — 0.10 — — — — 57 — — — Keno Hill (12,16) 1,300 14.8 0.005 1.3 2.7 — 19,270 6 16,450 34,940 — San Sebastian - Oxide (17) 2,163 7.1 0.06 — — — 15,364 134 — — — San Sebastian - Sulfide (17) 326 4.3 0.01 1.7 2.6 0.9 1,388 4 5,680 8,420 3,090 Fire Creek (18,19) 1,197 0.4 0.42 — — — 524 500 — — — Fire Creek - Open Pit (24) 74,584 0.1 0.03 — — — 5,232 2,178 — — — Hollister (18,20) 742 2.7 0.40 — — — 2,037 294 — — — Midas (18,21) 1,480 5.3 0.44 — — — 7,918 657 — — — Heva (22) 1,615 — 0.08 — — — — 136 — — — Hosco (22) 14,460 — 0.03 — — — — 461 — — — Star (12,23) 2,044 3.5 — 6.7 6.7 — 7,129 — 137,040 137,570 — San Juan Silver (12,25) 2,351 15.8 0.01 1.4 1.1 — 37,026 27 47,430 38,020 — Monte Cristo (26) 523 0.2 0.24 — — — 126 101 — — — Rock Creek (12,27) 99,997 1.5 — — — 0.7 148,688 — — — 658,410 Libby Exploration (12,28) 112,185 1.6 — — — 0.7 183,346 — — — 759,420 Rackla - Tiger Underground (29) 153 — 0.07 — — — — 11 — — — Rackla - Tiger Open Pit (29) 30 — 0.05 — — — — 2 — — — Rackla - Osiris Underground (30) 4,398 — 0.12 — — — — 515 — — — Rackla - Osiris Open Pit (30) 5,919 — 0.09 — — — — 529 — — — Total Inferred 333,809 492,337 6,171 553,620 470,780 1,420,920 (8) The term "mineral resources" means a concentration or occurrence of material of economic interest in or on the Earth's crust in such form, grade or quality, and quantity that there are reasonable prospects for economic extraction.
Item 2. Properties Note on SEC Mining Disclosure Rules Information concerning our mining properties in this Annual Report on Form 10-K has been prepared in accordance with the requirements of subpart 1300 of Regulation S-K.
Item 2. Properties Note on SEC Mining Disclosure Rules Information concerning our mining properties in this Annual Report on Form 10-K has been prepared in accordance with the requirements of subpart 1300 of SEC Regulation S-K.
Cash Cost, After By-product Credits, Per Silver Ounce and AISC, After By-product Credits, Per Silver Ounce, represent non-GAAP measurements that management uses to monitor and evaluate the performance of our mining operations.
Cash Cost, After By-product Credits, Per Silver Ounce and AISC, After By-product Credits, Per Silver Ounce, represent non-GAAP measurements that management uses to monitor and evaluate the performance of our mining operations.
We believe these measurements provide indicators of economic performance and efficiency at each location and on a consolidated basis, as well as providing a meaningful basis to compare our results to those of other mining companies and other operating mining properties.
We believe these measurements provide indicators of economic performance and efficiency at each location and on a consolidated basis, as well as providing a meaningful basis to compare our results to those of other mining companies and other operating mining properties.
A reconciliation of cost of sales and other direct production costs and depreciation, depletion and amortization, the most comparable GAAP measure, to these non-GAAP measures can be found in Item 7.
A reconciliation of cost of sales and other direct production costs and depreciation, depletion and amortization, the most comparable GAAP measure, to these non-GAAP measures can be found in Item 7.
At ore deposition, thick and extensive lenses of base and precious metals, with pyrite and barite, formed at the footwall-hanging wall contact. Major sulfide minerals include pyrite, sphalerite, galena, and tetrahedrite/tennantite. 41 Greens Creek consists of the mine, an ore concentrating mill, a tailings storage area, a ship-loading facility, camp facilities, a ferry dock, and other related infrastructure.
At ore deposition, thick and extensive lenses of base and precious metals, with pyrite and barite, formed at the footwall-hanging wall contact. Major sulfide minerals include pyrite, sphalerite, galena, and tetrahedrite/tennantite. Greens Creek consists of the mine, an ore concentrating mill, a tailings storage area, a ship-loading facility, camp facilities, a ferry dock, and other related infrastructure.
The method is accomplished without the use of drop raises or lower mucking drives which may result in local stress concentrations and increased exposure to seismic events. Large blasts using up to 35,000 lbs. of pumped emulsion and programmable electronic detonators fragment up to 350 feet of strike length to a depth of approximately 46 30 feet.
The method is accomplished without the use of drop raises or lower mucking drives which may result in local stress concentrations and increased exposure to seismic events. Large blasts using up to 35,000 lbs. of pumped emulsion and programmable electronic detonators fragment up to 350 feet of strike length to a depth of approximately 30 feet.
These large blasts proactively induce fault-slip seismicity at the time of the blast and shortly after it. This blasted corridor is then mined underhand for two cuts. As these cuts are mined, little to no blasting is done to advance them. Dilution is controlled by supporting the hanging wall and footwall as the mining progresses through the blasted ore.
These large blasts proactively induce fault-slip seismicity at the time of the blast and shortly after it. This blasted corridor is 48 then mined underhand for two cuts. As these cuts are mined, little to no blasting is done to advance them. Dilution is controlled by supporting the hanging wall and footwall as the mining progresses through the blasted ore.
(2) Proven and probable mineral reserves are calculated and reviewed in-house and are subject to periodic audit by others, although audits are not performed on an annual basis. Cutoff grade assumptions vary by ore body and are developed based on reserve metals price assumptions, anticipated mill recoveries and smelter payables, and cash operating costs.
(2) Proven and probable mineral reserves are calculated and reviewed in-house and are subject to periodic audit by others, although audits are not performed on an annual basis. Cutoff grade assumptions vary by ore body and are developed based on reserve metals price assumptions, anticipated 45 mill recoveries and smelter payables, and cash operating costs.
See Note 4 of Notes to Consolidated Financial Statements and Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Results of Operations - Greens Creek for information on its financial performance. Greens Creek is within the Admiralty Island National Monument, an environmentally sensitive area.
See Note 4 of Notes to Consolidated Financial Statements and Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Results of Operations - Greens Creek for information on its financial performance. 42 Greens Creek is within the Admiralty Island National Monument, an environmentally sensitive area.
Open pit resources are calculated at $1,400 for gold and $19.83 for silver and cut-off grade of 0.01 Au Equivalent oz/ton and is inclusive of 10% mining dilution and 5% ore loss. Open pit mineral resources exclusive of underground mineral resources.
Open pit resources are calculated at $1,400 gold and $19.83 silver and cut-off grade of 0.01 Au Equivalent oz/ton and is inclusive of 10% mining dilution and 5% ore loss. Open pit mineral resources exclusive of underground mineral resources.
By early September, the fire had been extinguished, normal ventilation was reestablished and the workforce recalled. Following evaluation of alternatives, it was determined that in order to safely bring the mine back into production in the most rapid and cost effective way, a new secondary egress would be developed to bypass the damaged portion of the #2 shaft.
By early September, the fire had been extinguished, normal ventilation was reestablished and the workforce recalled. Following evaluation of alternatives, it was determined that in order to safely bring the mine back into production in the most rapid and cost-effective way, a new secondary egress needed to be developed to bypass the damaged portion of the #2 shaft.
Metallurgical recoveries: 90% for gold and 70% for silver. (20) Hollister mineral resources, including the Hatter Graben are reported at a gold equivalent cut-off grade of 0.238 oz/ton. Metallurgical recoveries: 88% for gold and 66% for silver. (21) Midas mineral resources are reported at a gold equivalent cut-off grade of 0.237 oz/ton.
(20) Hollister mineral resources, including the Hatter Graben are reported at a gold equivalent cut-off grade of 0.21 oz/ton. Metallurgical recoveries: 88% for gold and 66% for silver. (21) Midas mineral resources are reported at a gold equivalent cut-off grade of 0.20 oz/ton. Metallurgical recoveries: 90% for gold and 70% for silver.
Our estimates of proven and probable reserves are based on the following metals prices: December 31, 2023 2022 2021 Silver (per ounce) $ 17.00 $ 17.00 $ 17.00 Lead (per pound) $ 0.90 $ 0.90 $ 0.90 Zinc (per pound) $ 1.15 $ 1.15 $ 1.15 (3) Reserves are in-situ materials that incorporate estimates of the amount of waste that must be mined along with the ore and expected mining recovery.
Our estimates of proven and probable reserves are based on the following metals prices: December 31, 2024 2023 2022 Silver (per ounce) $ 22.00 $ 17.00 $ 17.00 Lead (per pound) $ 0.90 $ 0.90 $ 0.90 Zinc (per pound) $ 1.15 $ 1.15 $ 1.15 (3) Reserves are in-situ materials that incorporate estimates of the amount of waste that must be mined along with the ore and expected mining recovery.
The United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial, and Service Workers International Union is the bargaining agent for Lucky Friday’s 275 hourly employees as of December 31, 2023. During early January 2023, the bargaining agent ratified a six year labor agreement that expires in May 2029.
The United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial, and Service Workers International Union is the bargaining agent for Lucky Friday’s 323 hourly employees as of December 31, 2024. During early January 2023, the bargaining agent ratified a six-year labor agreement that expires in May 2029.
The current mine plan at Lucky Friday utilizes estimates of reserves and resources for approximately 19 years of production, through 2042. 47 Information with respect to the Lucky Friday’s production, total cost of sales, average Cash Cost, After By-product Credits, Per Silver Ounce, AISC, After By-product Credits, Per Silver Ounce, and proven and probable in -situ mineral reserves for the past three years is set forth in the table below.
The current mine plan at Lucky Friday utilizes estimates of reserves and resources for approximately 17 years of production, through 2042. 49 Information with respect to the Lucky Friday’s production, total cost of sales, average Cash Cost, After By-product Credits, Per Silver Ounce, AISC, After By-product Credits, Per Silver Ounce, and proven and probable in -situ mineral reserves for the past three years is set forth in the table below.
Following a strike that started in March 2017 and ended in early January 2020, re-staffing of the mine and ramp-up activities were completed during 2020, with a return to full production starting in the fourth quarter of 2020. As of December 31, 2023, we have recorded a $12.0 million asset retirement obligation for reclamation and closure costs.
Following a strike that started in March 2017 and ended in early January 2020, re-staffing of the mine and ramp-up activities were completed during 2020, with a return to full production starting in the fourth quarter of 2020. As of December 31, 2024, we have recorded a $11.0 million asset retirement obligation for reclamation and closure costs.
In 2023, 2022 and 2021, 87%, 88% and 86%, respectively of the tons mined were produced through the UCB method. The underhand cut and fill method was also utilized in 2023, 2022 and 2021.
In 2024, 2023 and 2022, 86%, 87% and 88%, respectively of the tons mined were produced through the UCB method. The underhand cut and fill method was also utilized in 2024, 2023 and 2022.
Cutoff grade assumptions vary by ore body and are developed based on reserve metals price assumptions, anticipated mill recoveries and smelter payables, and cash operating costs. Due to multiple ore metals, and complex combinations of ore types, metal ratios and metallurgical performances at Lucky Friday, the cutoff grade is expressed in terms of NSR, rather than metal grade.
Cutoff grade assumptions vary by ore body and are developed based on reserve metals price assumptions, anticipated mill recoveries and smelter payables, and cash operating costs. Due to multiple ore metals, and complex combinations of ore types, metal ratios and metallurgical performances at Keno Hill, the cutoff grade is expressed in terms of NSR, rather than metal grade.
Our estimates of proven and probable reserves are based on the following metals prices: 43 December 31, 2023 2022 2021 Silver (per ounce) $ 17.00 $ 17.00 $ 17.00 Gold (per ounce) $ 1,600 $ 1,600 $ 1,600 Lead (per pound) $ 0.90 $ 0.90 $ 0.90 Zinc (per pound) $ 1.15 $ 1.15 $ 1.15 (3) Reserves are in-situ materials that incorporate estimates of the amount of waste that must be mined along with the ore and expected mining recovery.
Our estimates of proven and probable reserves are based on the following metals prices: December 31, 2024 2023 2022 Silver (per ounce) $ 22.00 $ 17.00 $ 17.00 Gold (per ounce) $ 1,900 $ 1,600 $ 1,600 Lead (per pound) $ 0.90 $ 0.90 $ 0.90 Zinc (per pound) $ 1.15 $ 1.15 $ 1.15 (3) Reserves are in-situ materials that incorporate estimates of the amount of waste that must be mined along with the ore and expected mining recovery.
For more information, see Exhibit 96.2, the Technical Report Summary on the Lucky Friday Mine, Idaho, U.S.A., prepared for the Company by the QP, SLR, with an effective date of December 31, 2021. At December 31, 2023, there were 386 employees at Lucky Friday.
For more information, see Exhibit 96.2, the Technical Report Summary on the Lucky Friday Mine, Idaho, U.S.A., prepared for the Company by the QP, SLR, with an effective date of December 31, 2021. At December 31, 2024, there were 431 employees at Lucky Friday.
(27) Inferred resource at Rock Creek reported at a minimum thickness of 15 feet and an NSR cut-off value of $24.50/ton; Metallurgical recoveries: 88% for silver and 92% for copper. Resources adjusted based on mining restrictions as defined by USFS, Kootenai National Forest in the June 2003 'Record of Decision, Rock Creek Project'.
(27) Inferred resource at Rock Creek reported at a minimum thickness of 15 feet and an NSR cut-off value of $31.50/ton; Metallurgical recoveries: 88% for silver and 92% for copper. Resources adjusted based on mining restrictions as defined by U.S. Forest Service, Kootenai National Forest in the June 2003 'Record of Decision, Rock Creek Project'.
See footnotes 7 and 8 below. (2) Mineral reserves are based on the following prices unless otherwise stated: $17.00/oz for silver, $1,650/oz for gold, $0.90/lb for lead and $1.15/lb for zinc. Underground mineral reserves at Casa Berardi were based on a gold price of $1,850/oz. All Mineral Reserves are reported in-situ with estimates of mining dilution and mining loss.
See footnotes 8 and 9 below. (2) Mineral reserves are based on the following prices unless otherwise stated: $22.00/oz for silver, $1,900/oz for gold, $0.90/lb for lead and $1.15/lb for zinc. Underground mineral reserves at Casa Berardi were based on a gold price of $1,900/oz. All Mineral Reserves are reported in-situ with estimates of mining dilution and mining loss.
Exploration Underground Ag, Cu Sediment Hosted - Stratabound Republic United States Washington 100.0 % 114 patented claims and private land; 2,095 acres surface rights, 3,177 acres of mineral rights Private or BLM administered land Exploration Underground/Open Pit Au, Ag Vein Silver Valley United States Idaho 100.0 % Various exploration properties and claim holdings Private or USFS administered land Exploration Underground Ag, Zn, Pb Vein Aurora United States Nevada 100.0 % 506 unpatented lode claims, 92 patented lode claims, 25 private parcels; 9,928 total acres Private or USFS administered land, permit work in progress for USFS lands Exploration Underground/Open Pit Au, Ag Vein Kinskuch Canada British Columbia 100.0 % 156 claims; 146,780 acres Multi-use area-based permit with expiry 31 March 2024 Exploration Underground/Open Pit Au, Ag, Cu, Pb, Zn Vein, Massive Sulfide, Porphyry 37 Opinaca/Wildcat Canada Quebec 50% / 100% Opinaca: 248 claims (50%; 32,064 acres (12,976 ha)); Wildcat: 235 claims (100%; 30,528 acres (12,354 ha)) Intervention permits for exploration updated every year Exploration Underground Au Vein/Shear Zone Rackla - Tiger Canada Yukon 100.0 % 3,315 quartz mineral claims; 164,547 acres (66,590 ha) Class 3 Quartz Mining Land Use Approval LQ00531; approved by Yukon Environmental and Socio-economic Assessment Board Exploration Open Pit/Undergournd Au Carbonate hosted/replacement - reduced intrusion related Rackla - Osiris Canada Yukon 100.0% 1,478 quartz mineral claims; 74,576 acres (30,180 ha) Class 4 Quartz Mining Land Use Approval LQ00444; approved by Yukon Environmental and Socio-economic Assessment Board Exploration Open Pit/Undergournd Au Carbonate hosted, dissemintated (Carlin-style) Hecla is the operator at all mines and exploration properties.
Exploration Underground Ag, Cu Sediment Hosted - Stratabound 37 Republic United States Washington 100.0 % 114 patented claims and private land; 22 unpatented lode claims, 3 state leases, 2,096 acres surface rights, 3,536 acres of mineral rights Private, BLM and WA DNR administered lands Exploration Underground/Open Pit Au, Ag Vein Silver Valley United States Idaho 100.0 % Various exploration properties and claim holdings Private or USFS administered land Exploration Underground Ag, Zn, Pb Vein Aurora United States Nevada 100.0 % 448 unpatented lode claims, 92 patented lode claims, 25 private parcels; 9,928 total acres Private or USFS administered land, permit work in progress for USFS lands Exploration Underground/Open Pit Au, Ag Vein Kinskuch Canada British Columbia 100.0 % 156 claims; 146,780 acres Multi-use area-based permit with expiry 31 March 2024 Exploration Underground/Open Pit Au, Ag, Cu, Pb, Zn Vein, Massive Sulfide, Porphyry Opinaca/Wildcat Canada Quebec 50% / 100% Opinaca: 248 claims (50%; 32,064 acres (12,975 ha)); Wildcat: 224 claims (100%; 28,928 acres (11,707 ha)) Intervention permits for exploration updated every year Exploration Underground Au Vein/Shear Zone Rackla - Tiger Canada Yukon 100.0 % 3,315 quartz mineral claims; 164,547 acres (66,590 ha) Class 3 Quartz Mining Land Use Approval LQ00531; approved by Yukon Environmental and Socio-economic Assessment Board Exploration Open Pit/Underground Au Carbonate hosted/replacement - reduced intrusion related Rackla - Osiris Canada Yukon 100.0% 1,478 quartz mineral claims; 74,576 acres (30,180 ha) Class 4 Quartz Mining Land Use Approval LQ00444; approved by Yukon Environmental and Socio-economic Assessment Board Exploration Open Pit/Underground Au Carbonate hosted, disseminated (Carlin-style) Hecla is the operator at all mines and exploration properties.
Due to multiple ore metals, and complex combinations of ore types, metal ratios and metallurgical performances at Greens Creek, the cutoff grade is expressed in terms of NSR, rather than metal grade. The cut-off grade at Greens Creek is $230 per ton NSR for all zones except Gallagher, which has a cutoff grade of $235 per ton NSR.
Due to multiple ore metals, and complex combinations of ore types, metal ratios and metallurgical performances at Greens Creek, the cutoff grade is expressed in terms of NSR, rather than metal grade. The cut-off grade at Greens Creek is $230 per ton NSR for all zones.
Ore at Lucky Friday is processed using a conventional lead/zinc flotation flowsheet, and the plant capacity currently is estimated at 1,165 tons per day. During August 2023, the mine was suspended while repairing an unused station in the #2 ventilation shaft, which is also the secondary egress. The operation remained suspended due to a fire at the unused station.
Ore at Lucky Friday is processed using a conventional lead/zinc flotation flowsheet, and the plant capacity currently is estimated at 1,165 tons per day. During August 2023, the production at the mine was suspended due to a fire that occurred while repairing an unused station in the #2 ventilation shaft, which is also the secondary egress (required by MSHA regulations).
Some State permits in-place; no Federal permits. Exploration Underground Ag, Cu Sediment Hosted - Stratabound Libby Exploration United States Montana 100.0 % 2 patented lode claims, 36.84 acres (22.33 in wilderness, 14.51 outside wilderness) Private or USFS administered land. Some State permits in-place; no Federal permits.
Some State permits in-place; no Federal permits. Exploration Underground Ag, Cu Sediment Hosted - Stratabound Libby Exploration United States Montana 100.0 % 2 patented lode claims, 36.84 acres (22.33 in wilderness, 14.51 outside wilderness); 26 unpatented lode claims (537 acres), 854 unpatented mill site claims, 11 unpatented tunnel site claims Private or USFS administered land.
(29) Resources at the Rackla-Tiger project are based on a gold price of $1,650/oz, metallurgical recovery of 95% for gold, and cut-off grades of 0.02 oz/ton gold for the open pit portion of the resources and 0.04 oz/ton gold for the underground portion of the resources.
(29) Mineral resources at the Rackla-Tiger Project are based on a gold price of $1,650/oz, metallurgical recovery of 95% for gold, and cut-off grades of 0.02 oz/ton gold for the open pit portion of the resources and 0.04 oz/ton gold for the underground portions of the resources; US$/CAD$ exchange rate: 1:1.3.
The net book value of the Lucky Friday property and its associated plant, equipment and mineral interests was approximately $562.3 million as of December 31, 2023. The vintage of the facilities at Lucky Friday ranges from the 1950s to 2023.
The net book value of the Lucky Friday property and its associated plant, equipment and mineral interests was approximately $559.0 million as of December 31, 2024. The vintage of the facilities at Lucky Friday ranges from the 1950s to 2024.
The current mine plan at Greens Creek utilizes estimates of reserves and resources for approximately 14 years of production, through 2037.
The current mine plan at Greens Creek utilizes estimates of reserves and resources for approximately 12 years of production, through 2036.
The proven reserves reported for Greens Creek for 2023 represent stockpiled ore. 44 Information on in-situ mineral resources for Greens Creek excluding reserves for the past three years is set forth in the following table.
The proven reserves reported for Greens Creek for 2024 is exclusively stockpiled ore. 46 Information on in-situ mineral resources for Greens Creek excluding reserves for the past three years is set forth in the following table.
(23) Indicated and Inferred resources at the Star property are reported using a minimum mining width of 4.3 feet and NSR cut-off value of $150/ton; Metallurgical recovery: 93% for silver, 93% for lead, and 87% for zinc.
Heva and Hosco resources are diluted 20% and reported using a 7% mining loss. (23) Indicated and Inferred resources at the Star property are reported using a minimum mining width of 4.3 feet and an NSR cut-off value of $200/ton; Metallurgical recovery: 93% for silver, 93% for lead, and 87% for zinc.
See Item 1A, Risk Factors . 34 Sum mary The map below shows the locations of our operations and our exploration projects, as well as our corporate offices located in Coeur d’Alene, Idaho; Vancouver, British Columbia; Juneau, Alaska; Wallace, Idaho; Val d'Or, Quebec; Durango, Mexico and Whitehorse, Yukon. 35 The following table summarizes our aggregate metal quantities produced and sold for the last three years: Year Ended December 31, 2023 2022 2021 Silver - Ounces produced 14,342,863 14,182,987 12,887,240 Payable ounces sold 12,955,006 12,311,595 11,633,802 Gold - Ounces produced 151,259 175,807 201,327 Payable ounces sold 141,602 165,818 201,610 Lead - Tons produced 40,347 48,713 43,010 Payable tons sold 35,429 41,423 36,707 Zinc - Tons produced 60,579 64,748 63,617 Payable tons sold 43,050 43,658 43,626 36 A summary overview of our mining operations and exploration and pre-development projects is shown in the following table: Location Property Country State/Province Ownership Claims Permit Conditions Stage Mine Type Commodity Mineralization Style Greens Creek United States Alaska 100.0 % 440 unpatented lode claims, 58 unpatented millsite claims (8,072 acres), 21 patented lode claims and one patented millsite claim (328 acres); Land Exchange Properties (7,301 acres) Private or USFS administered land, all required permits for production in place Production Underground Ag, Au, Pb, Zn Massive Sulfide Lucky Friday United States Idaho 100.0 % 43 patented lode and millsite claims (710 acres); 53 unpatented lode claims (535 acres) Private or USFS administered land, all required permits for production in place Production Underground Ag, Pb, Zn Vein Casa Berardi Canada Quebec 100.0 % 394 claims; 48,704 acres (19,710 ha) All required permits for production in place or in process Production Underground/Open Pit Au Vein/Shear Zone Keno Hill Canada Yukon 100.0 % 703 quartz mining leases, 867 quartz mining claims, 2 Crown Grants; (238.12 km 2 / 23,812 ha) All required permits for production in place or in process Development Underground Ag, Au, Pb, Zn Vein/Fault Zone San Sebastian Mexico Durango 100.0 % 31 mining concessions; 99,643 acres (40,324 ha) All required permits for exploration in place Exploration Underground/Open Pit Ag, Au, Cu, Pb, Zn Vein Fire Creek United States Nevada 100.0 % 890 unpatented lode claims (18,400 acres); leases (409 acres); private land (3,208 acres) BLM administered land, Plan of Operations and other required State permits in place Exploration Underground Au, Ag Vein Hollister United States Nevada 100.0 % 1,005 unpatented lode claims, 11 unpatented mill site claims; 17,960 acres total BLM administered land, Plan of Operations and other required State permits in place Exploration Underground Au, Ag Vein Midas United States Nevada 100.0 % 1,489 unpatented lode claims (27,583 acres); private land (2,417 acres) BLM administered land, Plan of Operations and other required State permits in place Exploration Underground Au, Ag Vein Heva - Hosco Canada Quebec 100.0 % 102 claims; 9,506 acres (3,857 ha) Annual intervention permits for exploration in place along with authorization for road building Exploration Underground/Open Pit Au Vein/Shear Zone San Juan Silver United States Colorado 100.0 % 131 patented lode or millsite claims, 704 unpatented lode claims; 13,645 total acres 7 Notice-of-Intent areas for Exploration, Mining Plan of Operations (USFS); 112-d2 mining permit (CO DRMS) Exploration Underground Ag, Pb, Zn Vein Star United States Idaho 100.0 % 174 patented lode and millsite claims; 2,376 total acres Private land, required permits in place for exploration Exploration Underground Ag, Zn, Pb Vein Monte Cristo United States Nevada 100.0 % 344 unpatented lode claims (6,880 acres) BLM administered land, Notice of Intent required Exploration Underground/Open Pit Au, Ag Vein Rock Creek United States Montana 100.0 % 99 patented lode claims, 463 unpatented lode claims, 5 tunnel sites: 1,809 total acres; Private land: 754 acres Private or USFS administered land.
See Item 1A, Risk Factors . 34 Sum mary The map below shows the locations of our operations and our exploration projects, as well as our corporate offices located in Coeur d’Alene, Idaho; Vancouver, British Columbia; Juneau, Alaska; Wallace, Idaho; Val d'Or, Quebec; Durango, Mexico and Whitehorse, Yukon. 35 The following table summarizes our aggregate metal quantities produced and sold for the last three years: Year Ended December 31, 2024 2023 2022 Silver - Ounces produced 16,169,930 14,342,863 14,182,987 Payable ounces sold 14,485,158 12,955,006 12,311,595 Gold - Ounces produced 141,923 151,259 175,807 Payable ounces sold 132,442 141,602 165,818 Lead - Tons produced 52,515 40,347 48,713 Payable tons sold 44,795 35,429 41,423 Zinc - Tons produced 66,308 60,579 64,748 Payable tons sold 47,593 43,050 43,658 Copper - Tons produced 1,874 1,823 1,904 Payable tons sold 50 — — 36 A summary overview of our mining operations and exploration and pre-development projects is shown in the following table: Location Property Country State/Province Ownership Claims Permit Conditions Stage Mine Type Commodity Mineralization Style Greens Creek United States Alaska 100.0 % 440 unpatented lode claims, 58 unpatented millsite claims (8,072 acres), 21 patented lode claims and one patented millsite claim (328 acres); Land Exchange Properties (7,301 acres) Private or USFS administered land, all required permits for production in place Production Underground Ag, Au, Pb, Zn Massive Sulfide Lucky Friday United States Idaho 100.0 % 43 patented lode and millsite claims (710 acres); 53 unpatented lode claims (535 acres) Private or USFS administered land, all required permits for production in place Production Underground Ag, Pb, Zn Vein Casa Berardi Canada Quebec 100.0 % 407 claims; 49,480 acres (20,024 ha) All required permits for production in place or in process Production Underground/Open Pit Au Vein/Shear Zone Keno Hill Canada Yukon 100.0 % 703 quartz mining leases, 867 quartz mining claims, 2 Crown Grants; (238.12 km 2 / 23,812 ha) All required permits for production in place or in process Development Underground Ag, Au, Pb, Zn Vein/Fault Zone San Sebastian Mexico Durango 100.0 % 31 mining concessions; 99,643 acres (40,324 ha) All required permits for exploration in place Exploration Underground/Open Pit Ag, Au, Cu, Pb, Zn Vein Fire Creek United States Nevada 100.0 % 831 unpatented lode claims (17,175 acres); leases (409 acres); private land (3,208 acres) BLM administered land, Plan of Operations and other required State permits in place Exploration Underground Au, Ag Vein Hollister United States Nevada 100.0 % 853 unpatented lode claims, 152 leased unpatented lode claims, 11 unpatented mill site claims; 17,960 acres total BLM administered land, Plan of Operations and other required State permits in place Exploration Underground Au, Ag Vein Midas United States Nevada 100.0 % 1,456 unpatented lode claims, 33 leased unpatented lode claims, (total 27,583 acres unpatented claims); 44 patented lode claims, private land (2,417 acres) BLM administered land, Plan of Operations and other required State permits in place Exploration Underground Au, Ag Vein Heva - Hosco Canada Quebec 100.0 % 102 claims; 9,600 acres (3,884 ha) Annual intervention permits for exploration in place along with authorization for road building Exploration Underground/Open Pit Au Vein/Shear Zone San Juan Silver United States Colorado 100.0 % 129 patented lode and millsite claims, fee lands, 704 unpatented lode claims; 13,645 total acres 7 Notice-of-Intent areas for Exploration, Mining Plan of Operations (USFS); 112-d2 mining permit (CO DRMS) Exploration Underground Ag, Pb, Zn Vein Star United States Idaho 100.0 % 174 patented lode and millsite claims; 2,376 total acres Private land, required permits in place for exploration Exploration Underground Ag, Zn, Pb Vein Monte Cristo United States Nevada 100.0 % 334 unpatented lode claims, 10 leased unpatented lode claims (6,880 acres) BLM administered land, Notice of Intent required Exploration Underground/Open Pit Au, Ag Vein Rock Creek United States Montana 100.0 % 99 patented lode claims (1,859 acres), 370 unpatented lode claims (6,829 acres), 115 unpatented millsite claims, 5 unpatented tunnel sites; other private land: 754 acres Private or USFS administered land.
(30) Resources at the Rackla-Osiris project are based on a gold price of $1,850/oz, metallurgical recovery of 83% for gold, and cut-off grade of 0.03 oz/ton gold for the open pit portion of the resources and 0.06 oz/ton gold for the underground portion of the resources.
(30) Mineral resources at the Rackla-Osiris Project are based on a gold price of $1,850/oz, metallurgical recovery of 83% for gold, and cut-off grades of 0.03 oz/ton gold for the open pit portion of the resources and 0.06 oz/ton gold for the underground portions of the resources; US$/CAD$ exchange rate: 1:1.3.
(3) Measured resources were not defined for year-end 2023; indicated resources for silver increased 5% from 2022 given additions from drilling and reclassification of some previously defined reserve material; inferred resources for silver decreased 6% from 2022 given conversion to indicated resources of reserves due to drilling. 45 Lucky Friday We have owned and operated the Lucky Friday mine since 1958, which we have wholly owned since 1964.
(3) Measured resources were not defined for year-end 2024; indicated resources for silver decreased 4% from 2023 given conversion to reserve material; inferred resources for silver decreased 3% from 2023 given conversion to indicated resources of reserves due to drilling. 47 Lucky Friday We have owned and operated the Lucky Friday mine since 1958, which we have wholly owned since 1964.
(26) Inferred resource at Monte Cristo reported at a minimum mining width of 5.0 feet; resources based on $1,400/oz for gold, $26.50/oz for silver using a 0.06 oz/ton gold cut-off grade. Metallurgical recovery: 90% for gold and 90% for silver.
(26) Inferred resource at Monte Cristo reported at a minimum mining width of 5.0 feet and a 0.10 oz/ton gold cut-off grade. Metallurgical recovery: 90% for gold and 90% for silver.
(15) The average resource cut-off grades at Casa Berardi are 0.12 oz/ton gold for underground and 0.03 oz/ton gold for open pit; metallurgical recovery (actual 2023) 85% for gold; US$/CAN$ exchange rate: 1:1.3.
(15) The average resource cut-off grades at Casa Berardi are 0.11 oz/ton gold (3.7 g/tonne) for underground and 0.03 oz/ton gold (1.05 g/tonne) for open pit; metallurgical recovery (actual 2024): 85% for gold; US$/CAD$ exchange rate: 1:1.35.
Years Ended December 31, 2023 2022 2021 Measured Resources (1,2,3) Total tons — — — Silver (ounces per ton) — — — Gold (ounces per ton) — — — Zinc (percent) — — — Lead (percent) — — — Silver (ounces) — — — Gold (ounces) — — — Zinc (tons) — — — Lead (tons) — — — Indicated Resources (1,2,3) Total tons 8,039,900 8,421,200 8,355,000 Silver (ounces per ton) 13.9 12.9 12.8 Gold (ounces per ton) 0.10 0.10 0.10 Zinc (percent) 8.0 8.0 8.4 Lead (percent) 3.0 2.9 3.0 Silver (ounces) 111,526,000 108,717,200 106,670,300 Gold (ounces) 800,000 810,300 835,900 Zinc (tons) 643,950 675,740 701,520 Lead (tons) 239,250 245,990 250,040 Measured and Indicated Resources (1,2,3) Total tons 8,039,900 8,421,200 8,355,000 Silver (ounces per ton) 13.9 12.9 12.8 Gold (ounces per ton) 0.10 0.10 0.10 Zinc (percent) 8.0 8.0 8.4 Lead (percent) 3.0 2.9 3.0 Silver (ounces) 111,526,000 108,717,200 106,670,300 Gold (ounces) 800,000 810,300 835,900 Zinc (tons) 643,950 675,740 701,520 Lead (tons) 239,250 245,990 250,040 Inferred Resources (1,2,3) Total tons 1,929,600 2,383,200 2,151,700 Silver (ounces per ton) 13.4 12.2 12.8 Gold (ounces per ton) 0.08 0.08 0.08 Zinc (percent) 2.9 6.9 6.8 Lead (percent) 6.9 2.8 2.8 Silver (ounces) 25,891,000 28,949,200 27,507,500 Gold (ounces) 154,000 178,100 163,700 Zinc (tons) 133,260 164,080 146,020 Lead (tons) 55,890 67,400 60,140 (1) Mineral resources are based on $1,750/oz for gold, $21.00/oz for silver, $1.15/lb for lead, $1.35/lb for zinc and are reported in-situ and exclusive of mineral reserves.
Years Ended December 31, 2024 2023 2022 Measured Resources (1,2,3) Total tons — — — Silver (ounces per ton) — — — Gold (ounces per ton) — — — Zinc (percent) — — — Lead (percent) — — — Silver (ounces) — — — Gold (ounces) — — — Lead (tons) — — — Zinc (tons) — — — Indicated Resources (1,2,3) Total tons 7,618,700 8,039,900 8,421,200 Silver (ounces per ton) 14.1 13.9 12.9 Gold (ounces per ton) 0.10 0.10 0.10 Zinc (percent) 8.0 8.0 8.0 Lead (percent) 3.0 3.0 2.9 Silver (ounces) 107,226,000 111,526,000 108,717,200 Gold (ounces) 760,000 800,000 810,300 Lead (tons) 227,360 239,250 245,990 Zinc (tons) 607,600 643,950 675,740 Measured and Indicated Resources (1,2,3) Total tons 7,618,700 8,039,900 8,421,200 Silver (ounces per ton) 14.1 13.9 12.9 Gold (ounces per ton) 0.10 0.10 0.10 Zinc (percent) 8.0 8.0 8.0 Lead (percent) 3.0 3.0 2.9 Silver (ounces) 107,226,000 111,526,000 108,717,200 Gold (ounces) 760,000 800,000 810,300 Lead (tons) 227,360 239,250 245,990 Zinc (tons) 607,600 643,950 675,740 Inferred Resources (1,2,3) Total tons 1,877,700 1,929,600 2,383,200 Silver (ounces per ton) 13.4 13.4 12.2 Gold (ounces per ton) 0.08 0.08 0.08 Zinc (percent) 6.9 2.9 6.9 Lead (percent) 2.9 6.9 2.8 Silver (ounces) 25,106,100 25,891,000 28,949,200 Gold (ounces) 151,400 154,000 178,100 Lead (tons) 54,010 55,890 67,400 Zinc (tons) 130,120 133,260 164,080 (1) Mineral resources are based on $2,000/oz for gold, $24.00/oz for silver, $1.15/lb for lead, $1.35/lb for zinc and are reported in-situ and exclusive of mineral reserves.
Information with respect to Greens Creek's production, total cost of sales, average Cash Cost, After By-product Credits, Per Silver Ounce, All-In Sustaining Costs (“AISC”), After By-product Credits, Per Silver Ounce, and proven and probable mineral reserves for the past three years is set forth in the following table. 42 Years Ended December 31, Production 2023 2022 2021 Ore milled (tons) 914,796 881,445 841,967 Silver (ounces) 9,731,752 9,741,935 9,243,222 Gold (ounces) 60,896 48,216 46,088 Zinc (tons) 51,496 52,312 53,648 Lead (tons) 19,578 19,480 19,873 Total cost of sales $ 259,895 $ 232,718 $ 213,113 Cash Cost, After By-product Credits, Per Silver Ounce (1) $ 2.53 $ 0.70 $ (0.65 ) AISC, After By-Product Credits, per Silver Ounce (1) $ 7.14 $ 5.17 $ 2.70 Proven Mineral Reserves (2,3,4,5) Total tons 8,800 6,700 1,900 Silver (ounces per ton) 11.3 16.1 9.6 Gold (ounces per ton) 0.08 0.07 0.08 Zinc (percent) 8.4 5.4 4.5 Lead (percent) 3.5 2.3 1.7 Contained silver (ounces) 99,500 107,500 17,900 Contained gold (ounces) 700 400 100 Contained zinc (tons) 740 360 80 Contained lead (tons) 310 150 30 Probable Mineral Reserves (2,3,4,5) Total tons 10,008,900 10,667,600 11,073,800 Silver (ounces per ton) 10.5 10.9 11.3 Gold (ounces per ton) 0.09 0.09 0.09 Zinc (percent) 6.6 6.5 6.6 Lead (percent) 2.5 2.5 2.5 Contained silver (ounces) 105,121,700 116,748,100 125,200,900 Contained gold (ounces) 879,700 934,700 945,600 Contained zinc (tons) 657,990 694,800 725,830 Contained lead (tons) 250,270 264,600 282,220 Total Proven and Probable Mineral Reserves (2,3,4,5) Total tons 10,017,700 10,674,300 11,075,700 Silver (ounces per ton) 10.5 11.0 11.3 Gold (ounces per ton) 0.09 0.09 0.09 Zinc (percent) 6.6 6.5 6.6 Lead (percent) 2.5 2.5 2.5 Contained silver (ounces) 105,221,200 116,855,600 125,218,800 Contained gold (ounces) 880,400 935,100 945,700 Contained zinc (tons) 658,730 695,160 725,910 Contained lead (tons) 250,580 264,750 282,250 (1) Includes by-product credits from gold, lead and zinc production.
Information with respect to Greens Creek's production, total cost of sales, average Cash Cost, After By-product Credits, Per Silver Ounce, All-In Sustaining Costs (“AISC”), After By-product Credits, Per Silver Ounce, and proven and probable mineral reserves for the past three years is set forth in the following table. 44 Years Ended December 31, Production 2024 2023 2022 Ore milled (tons) 895,318 914,796 881,445 Silver (ounces) 8,480,877 9,731,752 9,741,935 Gold (ounces) 55,275 60,896 48,216 Lead (tons) 18,320 19,578 19,480 Zinc (tons) 51,288 51,496 52,312 Copper (tons) 1,874 1,823 1,904 Total cost of sales $ 268,127 $ 259,895 $ 232,718 Cash Cost, After By-product Credits, Per Silver Ounce (1) $ (0.05 ) $ 2.53 $ 0.70 AISC, After By-Product Credits, per Silver Ounce (1) $ 5.65 $ 7.14 $ 5.17 Proven Mineral Reserves (2,3,4,5) Total tons 9,200 8,800 6,700 Silver (ounces per ton) 7.6 11.3 16.1 Gold (ounces per ton) 0.07 0.08 0.07 Zinc (percent) 6.5 8.4 5.4 Lead (percent) 2.4 3.5 2.3 Contained silver (ounces) 69,800 99,500 107,500 Contained gold (ounces) 700 700 400 Contained lead (tons) 220 310 150 Contained zinc (tons) 600 740 360 Probable Mineral Reserves (2,3,4,5) Total tons 10,437,800 10,008,900 10,667,600 Silver (ounces per ton) 9.9 10.5 10.9 Gold (ounces per ton) 0.08 0.09 0.09 Zinc (percent) 6.2 6.6 6.5 Lead (percent) 2.3 2.5 2.5 Contained silver (ounces) 103,640,900 105,121,700 116,748,100 Contained gold (ounces) 864,300 879,700 934,700 Contained lead (tons) 240,450 250,270 264,600 Contained zinc (tons) 645,410 657,990 694,800 Total Proven and Probable Mineral Reserves (2,3,4,5) Total tons 10,447,000 10,017,700 10,674,300 Silver (ounces per ton) 9.9 10.5 11.0 Gold (ounces per ton) 0.08 0.09 0.09 Zinc (percent) 6.2 6.6 6.5 Lead (percent) 2.3 2.5 2.5 Contained silver (ounces) 103,710,700 105,221,200 116,855,600 Contained gold (ounces) 865,000 880,400 935,100 Contained lead (tons) 240,670 250,580 264,750 Contained zinc (tons) 646,010 658,730 695,160 (1) Includes by-product credits from gold, lead, zinc and copper production.
(18) Mineral resources for Fire Creek, Hollister and Midas are reported using $1,500/oz for gold and $21.00/oz for silver prices, unless otherwise noted. A minimum mining width is defined as four feet or the vein true thickness plus two feet, whichever is greater. (19) Fire Creek mineral resources are reported at a gold equivalent cut-off grade of 0.283 oz/ton.
(18) Mineral resources for Fire Creek, Hollister and Midas are reported using a minimum mining width of four feet or the vein true thickness plus two feet, whichever is greater. (19) Fire Creek underground mineral resources are reported at a gold equivalent cut-off grade of 0.22 oz/ton. Metallurgical recoveries: 90% for gold and 70% for silver.
Resources adjusted based on mining restrictions as defined by USFS, Kootenai National Forest, Montana DEQ in December 2015 'Joint Final EIS, Montanore Project' and the February 2016 U.S Forest Service - Kootenai National Forest 'Record of Decision, Montanore Project'.
Forest Service, Kootenai National Forest, Montana DEQ in December 2015 'Joint Final EIS, Montanore Project' and the February 2016 U.S Forest Service - Kootenai National Forest 'Record of Decision, Montanore Project'.
Years Ended December 31, 2023 2022 2021 Measured Resources (1,2,3) Total tons 5,325,500 6,237,300 8,652,500 Silver (ounces per ton) 8.6 7.8 7.6 Lead (percent) 5.6 5.4 4.9 Zinc (percent) 2.8 2.6 2.5 Silver (ounces) 45,784,900 48,550,600 65,752,300 Lead (tons) 299,360 335,850 425,100 Zinc (tons) 146,420 161,000 213,480 Indicated Resources (1,2,3) Total tons 1,011,000 1,193,800 1,840,500 Silver (ounces per ton) 8.1 8.0 7.6 Lead (percent) 6.0 5.4 5.1 Zinc (percent) 2.7 2.2 2.4 Silver (ounces) 8,135,700 9,581,300 14,010,000 Lead (tons) 60,200 64,390 93,140 Zinc (tons) 26,910 26,200 44,120 Measured and Indicated Resources (1,2,3) Total tons 6,336,500 7,431,100 10,493,000 Silver (ounces per ton) 8.5 7.8 7.6 Lead (percent) 5.7 5.4 4.9 Zinc (percent) 2.7 2.5 2.5 Silver (ounces) 53,920,600 58,131,900 79,762,300 Lead (tons) 359,560 400,240 518,240 Zinc (tons) 173,330 187,200 257,600 Inferred Resources (1,2,3) Total tons 3,600,000 3,591,600 5,376,900 Silver (ounces per ton) 7.8 8.7 7.8 Lead (percent) 5.9 6.3 5.8 Zinc (percent) 2.8 2.4 2.4 Silver (ounces) 27,933,900 31,263,800 41,871,500 Lead (tons) 211,340 224,670 311,850 Zinc (tons) 100,630 84,700 129,600 (1) Mineral resources are based on $21.00/oz for silver, $1.15/lb for lead, $1.35/lb for zinc and are reported in-situ and exclusive of mineral reserves.
Years Ended December 31, 2024 2023 2022 Measured Resources (1,2,3) Total tons 3,781,400 5,325,500 6,237,300 Silver (ounces per ton) 8.7 8.6 7.8 Lead (percent) 5.8 5.6 5.4 Zinc (percent) 2.6 2.8 2.6 Silver (ounces) 32,794,700 45,784,900 48,550,600 Lead (tons) 217,490 299,360 335,850 Zinc (tons) 99,840 146,420 161,000 Indicated Resources (1,2,3) Total tons 845,200 1,011,000 1,193,800 Silver (ounces per ton) 8.7 8.1 8.0 Lead (percent) 6.6 6.0 5.4 Zinc (percent) 2.3 2.7 2.2 Silver (ounces) 7,350,000 8,135,700 9,581,300 Lead (tons) 55,890 60,200 64,390 Zinc (tons) 19,700 26,910 26,200 Measured and Indicated Resources (1,2,3) Total tons 4,626,600 6,336,500 7,431,100 Silver (ounces per ton) 8.7 8.5 7.8 Lead (percent) 6.2 5.7 5.4 Zinc (percent) 2.5 2.7 2.5 Silver (ounces) 40,144,700 53,920,600 58,131,900 Lead (tons) 273,380 359,560 400,240 Zinc (tons) 119,540 173,330 187,200 Inferred Resources (1,2,3) Total tons 3,811,400 3,600,000 3,591,600 Silver (ounces per ton) 10.3 7.8 8.7 Lead (percent) 7.7 5.9 6.3 Zinc (percent) 3.2 2.8 2.4 Silver (ounces) 39,183,200 27,933,900 31,263,800 Lead (tons) 293,010 211,340 224,670 Zinc (tons) 121,710 100,630 84,700 (1) Mineral resources are based on $24.00/oz for silver, $1.15/lb for lead, $1.35/lb for zinc and are reported in-situ and exclusive of mineral reserves.
(4) The change in reserves in 2023 from 2022 was due to mining depletion offset by drilling increases on the 30 Vein off the 7500 level and drilling and reinterpretation of the mineral zone across the silver along the western edge of the Gold Hunter zone.
The change in reserves in 2023 from 2022 was due to mining depletion offset by drilling increases on the 30 Vein off the 7500 level and drilling and reinterpretation of the mineral zone across the silver along the western edge of the Gold Hunter zone. 51 Information on in-situ mineral resources excluding mineral reserves for Lucky Friday for the past three years is set forth in the following table.
Years Ended December 31, Production 2023 2022 2021 Ore milled (tons) 231,129 356,907 321,837 Silver (ounces) 3,086,119 4,412,764 3,564,128 Lead (tons) 19,543 29,233 23,137 Zinc (tons) 7,944 12,436 9,969 Total cost of sales $ 84,185 $ 116,598 $ 97,538 Cash Cost, After By-product Credits, Per Silver Ounce (1) $ 5.51 $ 5.06 $ 6.60 AISC, After By-product Credits, Per Silver Ounce (1) $ 12.21 $ 12.86 $ 14.34 Proven Mineral Reserves (2,3,4) Total tons 5,298,600 4,734,200 4,690,700 Silver (ounces per ton) 12.8 13.8 13.9 Lead (percent) 8.0 8.6 8.4 Zinc (percent) 3.8 3.7 3.4 Contained silver (ounces) 67,594,600 64,637,800 65,313,300 Contained lead (tons) 424,080 404,160 395,290 Contained zinc (tons) 201,280 174,510 159,360 Probable Mineral Reserves (2,3,4) Total tons 965,500 840,100 765,400 Silver (ounces per ton) 10.8 12.8 12.3 Lead (percent) 7.1 8.1 7.5 Zinc (percent) 2.9 3.2 2.8 Contained silver (ounces) 10,410,500 9,978,200 9,386,000 Contained lead (tons) 68,320 63,510 57,160 Contained zinc (tons) 28,100 25,030 21,650 Total Proven and Probable Mineral Reserves (2,3,4) Total tons 6,264,100 5,574,300 5,456,100 Silver (ounces per ton) 12.5 13.4 13.7 Lead (percent) 7.9 8.4 8.3 Zinc (percent) 3.7 3.6 3.3 Contained silver (ounces) 78,005,100 74,616,000 74,699,300 Contained lead (tons) 492,400 467,670 452,450 Contained zinc (tons) 229,380 199,540 181,010 (1) Includes by-product credits from lead and zinc production.
Years Ended December 31, Production 2024 2023 2022 Ore milled (tons) 406,541 231,129 356,907 Silver (ounces) 4,890,949 3,086,119 4,412,764 Lead (tons) 31,265 19,543 29,233 Zinc (tons) 13,513 7,944 12,436 Total cost of sales $ 144,485 $ 84,185 $ 116,598 Cash Cost, After By-product Credits, Per Silver Ounce (1) $ 7.80 $ 5.51 $ 5.06 AISC, After By-product Credits, Per Silver Ounce (1) $ 16.50 $ 12.21 $ 12.86 Proven Mineral Reserves (2,3,4) Total tons 5,285,400 5,298,600 4,734,200 Silver (ounces per ton) 11.9 12.8 13.8 Lead (percent) 7.6 8.0 8.6 Zinc (percent) 3.6 3.8 3.7 Contained silver (ounces) 62,824,900 67,594,600 64,637,800 Contained lead (tons) 400,400 424,080 404,160 Contained zinc (tons) 189,860 201,280 174,510 Probable Mineral Reserves (2,3,4) Total tons 789,900 965,500 840,100 Silver (ounces per ton) 11.4 10.8 12.8 Lead (percent) 7.6 7.1 8.1 Zinc (percent) 3.1 2.9 3.2 Contained silver (ounces) 9,011,300 10,410,500 9,978,200 Contained lead (tons) 60,210 68,320 63,510 Contained zinc (tons) 24,620 28,100 25,030 Total Proven and Probable Mineral Reserves (2,3,4) Total tons 6,075,300 6,264,100 5,574,300 Silver (ounces per ton) 11.8 12.5 13.4 Lead (percent) 7.6 7.9 8.4 Zinc (percent) 3.5 3.7 3.6 Contained silver (ounces) 71,836,200 78,005,100 74,616,000 Contained lead (tons) 460,610 492,400 467,670 Contained zinc (tons) 214,480 229,380 199,540 (1) Includes by-product credits from lead and zinc production.
The 2023 reserve model was based on the Net Smelter Return values incorporating smelter terms and metal recoveries to the various concentrates. The average total mill recoveries for 2023 were 96% for silver, 95% for lead and 85% for zinc.
The 2024 reserve model was based on the Net Smelter Return values incorporating smelter terms and metal recoveries to the various concentrates. The 2024 reserve model assumes average total mill recoveries of 93.3% for silver, 92.8% for lead and 87.3% for zinc. The average total mill recoveries for 2024 were 94% for silver, 94% for lead and 86% for zinc.
(2) The resource NSR cut-off grades for Greens Creek are $230/ton for all zones except the Gallagher Zone at $235/ton; metallurgical recoveries (actual 2022): 81% for silver, 72% for gold, 82% for lead and 89% for zinc.
(2) The resource NSR cut-off value for Greens Creek is $230/ton for all zones; metallurgical recoveries (actual 2024): 79% for silver, 72% for gold, 81% for lead and 89% for zinc.
(4) Due to multiple ore metals, and complex combinations of ore types, metal ratios and metallurgical performances at Lucky Friday, the cutoff grade is expressed in terms of NSR, rather than metal grade.
Due to multiple ore metals, and complex combinations of ore types, metal ratios and metallurgical performances at Lucky Friday, the cutoff grade is expressed in terms of NSR, rather than metal grade. The reserve NSR cut-off values for Lucky Friday are $225.00/ton for the 30 Vein and $236.00/ton for the Intermediate Veins.
(16) The resource NSR cut-off value at Keno Hill is $129.10/ton (CAN$185/tonne); using minimum width of 4.9 feet (1.5m); metallurgical recovery (actual 2023): 96% for silver, 93% for lead, 81% for zinc; US$/CAN$ exchange rate: 1:1.3.
(16) The resource NSR cut-off value at Keno Hill is $134.40/ton (CAD$200/tonne); using minimum width of 4.9 feet (1.5m); metallurgical recovery (actual 2024): 97% for silver, 95% for lead, 87% for zinc; US$/CAD$ exchange rate: 1:1.35.
The reserve NSR cut-off values for Lucky Friday are $241.34 for the 30 Vein and $268.67 for the Intermediate Veins; metallurgical recoveries (actual 2023): 96% for silver, 95% for lead, and 85% for zinc. 38 (5) The average reserve cut-off grades at Casa Berardi are 0.11 oz/ton gold underground and 0.03 oz/ton gold for open pit.
(4) The reserve NSR cut-off values for Lucky Friday are $225/ton for the 30 Vein and $236/ton for the Intermediate Veins; metallurgical recoveries (actual 2024): 94% for silver, 94% for lead, and 86% for zinc. (5) The average reserve cut-off grades at Casa Berardi are 0.12 oz/ton gold (4.1 g/tonne) underground and 0.03 oz/ton gold (1.1 g/tonne) for open pit.
Concentrates are shipped from the Hawk Inlet marine terminal about nine miles from the mill. For more information, see Exhibit 96.1, the Technical Report Summary on the Greens Creek Mine, Alaska, U.S.A., prepared for the Company by the Qualified Person under Section 1300 of SEC Regulation S-K ("QP"), SLR International Corporation ("SLR") with an effective date of December 31, 2021.
For more information, see Exhibit 96.1, the Technical Report Summary on the Greens Creek Mine, Alaska, U.S.A., prepared for the Company by the Qualified Person under Section 1300 of SEC Regulation S-K ("QP"), SLR International Corporation ("SLR") with an effective date of December 31, 2021. 43 The employees at Greens Creek are employees of Hecla Greens Creek Mining Company, our wholly-owned subsidiary, and are not represented by a bargaining agent.
(11) The term "inferred resources" means that part of a mineral resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling.
Because an indicated mineral resource has a lower confidence level than a measured mineral resource, an indicated mineral resource may only be converted to a probable mineral reserve. (11) The term "inferred resources" means that part of a mineral resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling.
(28) Inferred resource at the Libby Exploration project reported at a minimum thickness of 15 feet and an NSR cut-off value of $24.50/ton; Metallurgical recoveries: 88% for silver and 92% for copper.
(28) Inferred resource at Libby reported at a minimum thickness of 15 feet and an NSR cut-off value of $31.50/ton NSR; Metallurgical recoveries: 88% for silver and 92% copper. Resources adjusted based on mining restrictions as defined by U.S.
We maintained a $92.2 million reclamation and long-term water treatment bond for Greens Creek as of December 31, 2023. The net book value of the Greens Creek property and its associated plant, equipment and mineral interests was approximately $522.6 million as of December 31, 2023. The vintage of the facilities at Greens Creek ranges from the 1980s to 2023.
The net book value of the Greens Creek property and its associated plant, equipment and mineral interests was approximately $513.4 million as of December 31, 2024. The vintage of the facilities at Greens Creek ranges from the 1980s to 2024.
(5) Probable reserves at Greens Creek are based on average drill spacing of 50 to 100 feet. Proven reserves typically require that mining samples for the basis of the ore grade estimates used, while probable reserve grade estimates can be based entirely on drilling results.
Proven reserves typically require that mine production samples for the basis of the ore grade estimates, while probable reserve grade estimates can be based entirely on drilling results.
(2) The resource NSR cut-off values for Lucky Friday are $200.57/ton for the 30 Vein, $227.90/ton for the Intermediate Veins and $198.48/ton for the Lucky Friday Vein; metallurgical recoveries (actual 2023): 96% for silver, 95% for lead and 85% for zinc. The cut-off grade calculations include costs associated with mining, processing, surface operations, environmental, general administrative, and sustaining capital.
(2) The resource NSR cut-off value for Lucky Friday is $236.00/ton; metallurgical recoveries (actual 2024): 94% for silver, 94% for lead and 86% for zinc. The cut-off grade calculations include costs associated with mining, processing, surface operations, environmental, general administrative, and sustaining capital.
The 2023 reserve model assumes average total mill recoveries of 80% for silver, 74% for gold, 89% for zinc and 82% for lead. (4) The change in reserves in 2023 versus 2022 was due to mining depletion and an increase in cut-off grade due to increased costs.
The 2024 reserve model assumes average total mill recoveries of 80% for silver, 74% for gold, 89% for zinc and 82% for lead. (4) The change in reserves in 2024 versus 2023 was due to mining depletion and lowering expected backfill dilution grades, offset by increases due to higher metal prices and drilling additions.
Metallurgical recoveries based on grade dependent recovery curves: recoveries at the mean resource grade average 89% for silver and 74% for lead and 81% zinc for the Bulldog and a constant 85% for gold and 85% for silver for North Amethyst and Equity.
(25) Inferred resources reported at a minimum mining width of 6.0 feet for Bulldog and an NSR cut-off value of $200/ton and 5.0 feet for Equity and North Amethyst veins at an NSR cut-off value of $175/ton; Metallurgical recoveries based on grade dependent recovery curves; metal recoveries at the mean resource grade average 89% silver, 74% lead, and 81% zinc for the Bulldog and a constant 85% gold and 85% silver for North Amethyst and Equity.
The reserve NSR cut-off values for Lucky Friday are $241.34/ton for the 30 Vein and $268.67/ton for the Intermediate Veins. The cut-off grade calculations include costs associated with mining, processing, surface operations, environmental, general administrative, and sustaining capital.
The reserve NSR cut-off value for Keno Hill is $235.20/ton. The cut-off grade calculations include costs associated with mining, processing, surface operations, environmental, general administrative, and sustaining capital.
Metallurgical recoveries based on grade dependent recovery curves: recoveries at the mean resource grade average 89% for silver and 84% for gold for oxide material and 85% for silver, 83% for gold, 81% for lead, 86% for zinc, and 83% for copper for sulfide material.
(17) Mineral resources for underground zones at San Sebastian reported at a cut-off grade of $158.8/ton ($175/tonne), open pit resources reported at a cut-off value of $72.6/ton ($80/tonne); Metallurgical recoveries based on grade dependent recovery curves: recoveries at the 41 mean resource grade average 89% for silver and 84% for gold for oxide material and 85% for silver, 83% for gold, 81% for lead, 86% for zinc, and 83% for copper for sulfide material.
We report Keno as a separate segment in our consolidated financial statements. See Note 4 of Notes to Consolidated Financial Statements and
The operations are located in the traditional territory of the First Nation of Na-Cho Nyäk Dun (FNNND). We report Keno as a separate segment in our consolidated financial statements. See Note 4 of Notes to Consolidated Financial Statements and Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations, under 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). 48 (2) Proven and probable mineral reserves are calculated and reviewed in-house and are subject to periodic audit by others, although audits are not performed on an annual basis.
Management’s Discussion and Analysis of Financial Condition and Results of Operations, under 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).
The reserve NSR cut-off values for Greens Creek are $230/ton for all zones except the Gallagher Zone at $235/ton; metallurgical recoveries (actual 2023): 80% for silver, 74% for gold, 82% for lead, and 89% for zinc.
(3) The reserve NSR cut-off value for Greens Creek is $230/ton for all zones; metallurgical recoveries (actual 2024): 79% for silver, 72% for gold, 81% for lead, and 89% for zinc.
Metallurgical recoveries: 90% for gold and 70% for silver. A gold-equivalent cut-off grade of 0.1 oz/ton and a gold price of $1,700/oz used for Sinter Zone with resources undiluted. 40 (22) Measured, indicated and inferred resources at Heva and Hosco are based on $1,500/oz for gold.
Inferred resources for the Sinter Zone are reported undiluted. (22) Mineral resources at Heva and Hosco are based on a gold cut-off grade of 0.011 oz/ton (0.37 g/tonnes) for open pit and 0.117 oz/ton (4 g/tonne) for underground and metallurgical recoveries of 95% for gold at Heva and 81.5% and 87.7% for gold at Hosco depending on zone.
The employees at Greens Creek are employees of Hecla Greens Creek Mining Company, our wholly-owned subsidiary, and are not represented by a bargaining agent. There were 512 employees at Greens Creek at December 31, 2023. As of December 31, 2023, we have recorded a $39.9 million asset retirement obligation for reclamation and closure costs.
There were 537 employees at Greens Creek at December 31, 2024. As of December 31, 2024, we have recorded a $38.7 million asset retirement obligation for reclamation and closure costs. We maintained a $92.2 million reclamation and long-term water treatment bond for Greens Creek as of December 31, 2024.
K eno Hill The Keno Hill unit is located in the central Yukon Territory, Canada, and covers an area of approximately 15,000 hectares in central Yukon (63° 54' 32" N, 135° 19’ 18” W; NTS 105M/14 and 105M/13). The operations are located in the traditional territory of the First Nation of Na-Cho Nyäk Dun (FNNND).
(3) Measured and Indicated resources for silver declined 26% from 2023 given conversion to mineral reserves, new size requirements for resource areas and model reinterpretations; Inferred silver resources increased 40% from 2023 given model reinterpretations which added the sections of the 20, 30 and 41 vein into the resource. 52 K eno Hill The Keno Hill unit is located in the central Yukon Territory, Canada, and covers an area of approximately 15,000 hectares (37,000 acres) in central Yukon (63° 54' 32" N, 135° 19’ 18” W; NTS 105M/14 and 105M/13).
The reserve NSR cut-off value at Keno Hill is $244.24/ton (CAN$350/tonne), Metallurgical recovery: (actual 2023) 96% for silver, 93% for lead, 81% for zinc; US$/CAN$ exchange rate: 1:1.3. (7) The term “probable reserves” means the economically mineable part of an indicated and, in some cases, a measured mineral resource. See footnotes 8 and 9 below.
(7) The term “probable reserves” means the economically mineable part of an indicated and, in some cases, a measured mineral resource. See footnotes 9 and 10 below.
(12) Mineral resources for operating properties are based on $1,750/oz for gold, $21.00/oz for silver, $1.15/lb for lead, $1.35/lb for zinc and $3.00/lb for copper, unless otherwise stated. Mineral resources for non-operating resource projects are based on $1,700/oz for gold, $21.00/oz for silver, $1.15/lb for lead, $1.35/lb for zinc and $3.00/lb for copper, unless otherwise stated.
(12) Mineral resources are based on $2,000/oz gold, $24/oz silver, $1.15/lb lead, $1.35/lb zinc and $4.00/lb copper, unless otherwise stated. (13) The resource NSR cut-off values for Greens Creek is $230/ton for all zones; metallurgical recoveries (actual 2024): 79% for silver, 72% for gold, 81% for lead, and 89% for zinc.
(14) The resource NSR cut-off values for Lucky Friday are $200.57 for the 30 Vein, $227.90 for the Intermediate Veins and $198.48 for the Lucky Friday Vein; metallurgical recoveries (actual 2023): 96% for silver, 95% for lead, and 85% for zinc.
(14) The resource NSR cut-off value for Lucky Friday is $236/ton; metallurgical recoveries (actual 2024): 94% for silver, 94% for lead, and 86% for zinc.
Costs of Sales and Other Direct Production Costs and Depreciation, Depletion and Amortization is presented for the full year of 2020 . However, Cash Cost, After By-product Credits and AISC, After By-product Credits only reflect results for the fourth quarter of 2020, as production was ramped-up during the first three quarters of 2020 following the end of the strike.
Costs of Sales and Other Direct Production Costs and Depreciation, Depletion and Amortization is presented for the full year of 2024 and 2023 .
The following table summarizes the in-situ mineral reserves for all properties as of December 31, 2023: Asset Tons (000) Silver (oz/ton) Gold (oz/ton) Lead % Zinc % Silver (000 oz) Gold (000 oz) Lead Tons Zinc Tons Proven Reserves: (1) Greens Creek (2,3) 9 11.3 0.08 3.5 8.4 100 1 310 740 Lucky Friday (2,4) 5,299 12.8 — 8.0 3.8 67,595 — 424,080 201,280 Casa Berardi Underground (2,5) 55 — 0.12 — — — 7 — — Casa Berardi Open Pit (2,5) 4,240 — 0.09 — — — 379 — — Keno Hill (2,6) — — — — — — — — — Total Proven 9,603 67,695 387 424,390 202,020 Probable Reserves: (7) Greens Creek (2,3) 10,009 10.5 0.09 2.5 6.6 105,122 880 250,270 657,990 Lucky Friday (2,4) 966 10.8 — 7.1 2.9 10,411 — 68,320 28,100 Casa Berardi Underground (2,5) 175 — 0.15 — — — 26 — — Casa Berardi Open Pit (2,5) 11,384 — 0.08 — — — 859 — — Keno Hill (2,6) 2,069 26.6 0.01 2.8 2.5 55,068 13 58,170 52,380 Total Probable 24,603 170,601 1,778 376,760 738,470 Proven and Probable Reserves: (1,7) Greens Creek (2,3) 10,018 10.5 0.09 2.5 6.6 105,222 881 — 250,580 — 658,730 Lucky Friday (2,4) 6,265 12.5 — 7.9 3.7 78,006 — — 492,400 — 229,380 Casa Berardi Underground (2,5) 230 — 0.14 — — — 33 — — — — Casa Berardi Open Pit (2,5) 15,624 — 0.08 — — — 1,238 — — Keno Hill (2,6) 2,069 26.6 0.01 2.8 2.5 55,068 13 58,170 52,380 Total Proven and Probable 34,206 238,296 2,165 801,150 940,490 (1) The term “reserve” means an estimate of tonnage and grade or quality of indicated and measured mineral resources that, in the opinion of the qualified person, can be the basis of an economically viable project.
The following table summarizes the in-situ mineral reserves for all properties as of December 31, 2024: Asset Tons (000) Silver (oz/ton) Gold (oz/ton) Lead % Zinc % Silver (000 oz) Gold (000 oz) Lead Tons Zinc Tons Proven Reserves: (1) Greens Creek (2,3) 9 7.6 0.07 2.4 6.5 70 1 220 600 Lucky Friday (2,4) 5,285 11.9 — 7.6 3.6 62,825 — 400,400 189,860 Casa Berardi Underground (2,5) 87 - 0.15 — — — 13 — — Casa Berardi Open Pit (2,5) 4,958 - 0.08 — — — 415 — — Keno Hill (2,6) 13 28.1 — 3.0 1.6 364 — 380 200 Total Proven 10,352 63,259 429 401,000 190,660 Probable Reserves: (7) Greens Creek (2,3) 10,438 9.9 0.08 2.3 6.2 103,641 864 240,450 645,410 Lucky Friday (2,4) 790 11.4 — 7.6 3.1 9,011 — 60,210 24,620 Casa Berardi Underground (2,5) 391 — 0.15 — — — 59 — — Casa Berardi Open Pit (2,5) 10,457 — 0.08 — — — 804 — — Keno Hill (2,6) 2,630 24.3 0.01 2.4 2.4 63,914 17 63,440 62,790 Total Probable 24,706 176,566 1,744 364,100 732,820 Proven and Probable Reserves: (1,7) Greens Creek (2,3) 10,447 9.9 0.08 2.3 6.2 103,711 865 — 240,670 — 646,010 Lucky Friday (2,4) 6,075 11.8 — 7.6 3.5 71,836 — — 460,610 — 214,480 Casa Berardi Underground (2,5) 478 — 0.15 — — — 72 — — — — Casa Berardi Open Pit (2,5) 15,415 — 0.08 — — — 1,219 — — Keno Hill (2,6) 2,643 24.3 0.01 2.4 2.4 64,278 17 63,820 62,990 Total Proven and Probable 35,058 239,825 2,173 765,100 923,480 38 (1) The term “reserve” means an estimate of tonnage and grade or quality of indicated and measured mineral resources that, in the opinion of the qualified person, can be the basis of an economically viable project.
(3) Measured and indicated resources for silver declined 7% from 2022 given conversion to mineral reserves; inferred silver resources decreased 11% from 2022 given some conversion to indicated resources and reserves.
(3) Measured and indicated resources for silver decreased 49% and inferred silver resources decreased 32% from 2023 given conversion to reserves, additional definition drilling and modeling changes. C asa Berardi We have wholly owned and operated Casa Berardi since June 2013.
Removed
(3) Due to multiple ore metals, and complex combinations of ore types, metal ratios and metallurgical performances at Greens Creek, the cutoff grade is expressed in terms of net smelter return (“NSR”), rather than metal grade.
Added
Metallurgical recovery (actual 2024): 85% for gold; US$/CAD$ exchange rate: 1:1.35. (6) The reserve NSR cut-off value at Keno Hill is $235.20/ton (CAD$350/tonne), Metallurgical recovery (actual 2024): 97% for silver, 95% for lead, 87% for zinc; US$/CAD$ exchange rate: 1:1.35.
Removed
Metallurgical recovery (actual 2023): 85% for gold; US$/CAN$ exchange rate: 1:1.3. (6) Due to multiple ore metals, and complex combinations of ore types, metal ratios and metallurgical performances at Keno Hill, the cutoff grade is expressed in terms of NSR, rather than metal grade.
Added
NI43-101 Technical Report for the Fire Creek Project, Lander County, Nevada; Effective Date March 31, 2018; prepared by Practical Mining LLC, Mark Odell, P.E. for Hecla Mining Company, June 28, 2018.
Removed
Because an indicated mineral resource has a lower level of confidence than the level of confidence of a measured mineral resource, an indicated mineral resource may only be converted to a probable mineral reserve.
Added
Concentrates are shipped from the Hawk Inlet marine terminal about nine miles from the mill.
Removed
Mineral resources are reported for all resource projects regardless of the percentage of total measured and indicated resource. (13) The resource NSR cut-off values for Greens Creek are $230/ton for all zones except the Gallagher Zone at $235/ton; metallurgical recoveries (actual 2023): 80% for silver, 74% for gold, 82% for lead, and 89% for zinc.
Added
The change in reserves in 2023 versus 2022 was due to mining depletion and an increase in cut-off grade due to increase costs offset by drilling additions. (5) Probable reserves at Greens Creek are based on average drill spacing of 50 to 100 feet.
Removed
(17) Indicated resources for most zones at San Sebastian based on $1,500/oz gold, $21.00/oz silver, $1.15/lb lead, $1.35/lb zinc and $3.00/lb copper using an NSR cut-off value of $90.72/ton ($100/tonne); $1,700/oz gold used for Toro, Bronco, and Tigre zones.

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Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

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Biggest changeComparison of 5 Year Cumulative Total Return Among Hecla Mining Company, the S&P 500, and the Philadelphia Gold and Silver Index Date Hecla Mining S&P 500 S&P 500 Gold Index December 2018 $ 100.00 $ 100.00 $ 100.00 December 2019 143.96 130.99 116.68 December 2020 275.87 151.99 109.46 December 2021 223.83 192.90 149.92 December 2022 239.37 155.57 162.99 December 2023 $ 208.16 $ 191.57 $ 143.09 The stock performance information above is “furnished” and shall not be deemed to be “soliciting material” or subject to Rule 14A of the Exchange Act, shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section, and shall not be deemed incorporated by reference in any filing under the Securities Act or the Exchange Act, whether made before or after the date of this report and irrespective of any general incorporation by reference language in any such filing, except to the extent that it specifically incorporates the information by reference.
Biggest changeComparison of 5 Year Cumulative Total Return Among Hecla Mining Company, the S&P 500, and the Philadelphia Gold and Silver Index Date Hecla Mining S&P 500 Philadelphia Gold and Silver Index December 2019 $ 100.00 $ 100.00 $ 100.00 December 2020 191.37 116.02 134.86 December 2021 155.27 147.26 123.88 December 2022 166.05 118.76 114.67 December 2023 144.40 146.25 117.56 December 2024 $ 148.60 $ 181.94 $ 128.30 The stock performance information above is “furnished” and shall not be deemed to be “soliciting material” or subject to Rule 14A of the Exchange Act, shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section, and shall not be deemed incorporated by reference in any filing under the Securities Act or the Exchange Act, whether made before or after the date of this report and irrespective of any general incorporation by reference language in any such filing, except to the extent that it specifically incorporates the information by reference.
For the years 2023, 2022 and 2021, we issued shares of our common stock on multiple occasions to three of our employee benefit plans in order to fund our obligations under those plans.
For the years 2023 and 2022, we issued shares of our common stock on multiple occasions to three of our employee benefit plans in order to fund our obligations under those plans.
Item 4. Mine Safety Disclosures The information concerning mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K is included in exhibit 95 to this report. 58 PART II Item 5 .
Item 4. Mine Safety Disclosures The information concerning mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of SEC Regulation S-K is included in exhibit 95 to this report. 60 PART II Item 5 .
We made no purchases of our outstanding common stock during the year ended December 31, 2023.
We made no purchases of our outstanding common stock during the year ended December 31, 2024.
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Shares of our common stock are traded on the New York Stock Exchange, Inc. under the symbol “HL.” As of February 9, 2024, there were 2,859 stockholders of record of our common stock.
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Shares of our common stock are traded on the New York Stock Exchange, Inc. under the symbol “HL.” As of February 7, 2025, there were 2,727 stockholders of record of our common stock.
The issuances were as follows: Date Purchaser Number of Shares Value of Shares at Issuance ($) October 16, 2023 Hecla Mining Company Pre-2005 Supplemental Excess Retirement Plan and the Hecla Mining Company Post-2004 Supplemental Excess Retirement Plan ("SERP") 200,000 $0.8 million Hecla Mining Company Retirement Plan Trust (“Hecla Plan”) 45,000 $0.2 million Lucky Friday Pension Plan Trust (“Lucky Friday Plan”) 4,500 $0.0 million October 14, 2022 SERP 1,000,000 $4.2 million May 19, 2022 Hecla Plan 900,000 $4.2 million Lucky Friday Plan 290,000 $1.3 million September 22, 2021 Hecla Plan 900,000 $4.9 million Lucky Friday Plan 100,000 $0.5 million January 27, 2021 SERP 3,500,000 $16.8 million 59 The following performance graph compares the performance of our common stock during the period beginning December 31, 2018 and ending December 31, 2023 to the S&P 500 and the Philadelphia Gold and Silver Index.
The issuances were as follows: Date Purchaser Number of Shares Value of Shares at Issuance ($) October 16, 2023 Hecla Mining Company Pre-2005 Supplemental Excess Retirement Plan and the Hecla Mining Company Post-2004 Supplemental Excess Retirement Plan ("SERP") 200,000 $0.8 million Hecla Mining Company Retirement Plan Trust (“Hecla Plan”) 45,000 $0.2 million Lucky Friday Pension Plan Trust (“Lucky Friday Plan”) 4,500 $0.0 million October 14, 2022 SERP 1,000,000 $4.2 million May 19, 2022 Hecla Plan 900,000 $4.2 million Lucky Friday Plan 290,000 $1.3 million 61 The following performance graph compares the performance of our common stock during the period beginning December 31, 2019 and ending December 31, 2024 to the S&P 500 and the Philadelphia Gold and Silver Index.
Each issuance was made pursuant to an exemption from registration under the Securities Act pursuant to Section 4(a)(2) of that Act and, except for the October 16, 2023 and October 14, 2022 contributions, was followed by the filing of a shelf registration statement on SEC Form S-3 allowing for the public resales of those shares.
Each issuance was made pursuant to an exemption from registration under the Securities Act pursuant to Section 4(a)(2) of that Act and was followed by the filing of a shelf registration statement on SEC Form S-3 allowing for the public resales of those shares.
The following table provides information as of December 31, 2023 regarding our compensation plans under which equity securities are authorized for issuance: Number of Securities To Be Issued Upon Exercise of Outstanding Options, Warrants and Rights Weighted-Average Exercise Price of Outstanding Options Number of Securities Remaining Available For Future Issuance Under Equity Compensation Plans Equity Compensation Plans Approved by Security Holders: 2010 Stock Incentive Plan — N/A 12,756,250 Stock Plan for Non-Employee Directors — N/A 2,165,894 Key Employee Deferred Compensation Plan — N/A 1,665,037 Total — N/A 16,587,181 See Note 12 of Notes to Consolidated Financial Statements for information regarding the above plans.
The following table provides information as of December 31, 2024 regarding our compensation plans under which equity securities are authorized for issuance: Number of Securities To Be Issued Upon Exercise of Outstanding Options, Warrants and Rights Weighted-Average Exercise Price of Outstanding Options Number of Securities Remaining Available For Future Issuance Under Equity Compensation Plans Equity Compensation Plans Approved by Security Holders: 2010 Stock Incentive Plan — N/A 10,175,414 Stock Plan for Non-Employee Directors — N/A 2,039,789 Key Employee Deferred Compensation Plan — N/A 1,665,037 Total — N/A 13,880,240 See Note 12 of Notes to Consolidated Financial Statements for information regarding the above plans.
We did not receive any cash proceeds from any of the above issuances of shares of common stock.
We did not receive any cash proceeds from any of the above issuances of shares of common stock and nor will we from any resales.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Removed
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities for more information). We do not expect to be required to contribute to our defined benefit plans in 2024, but we may choose to do so. See Note 6 of Notes to Consolidated Financial Statements for more information.
Added
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 61 Item 6. Reserved 62 Item 7.
Removed
We periodically examine the defined benefit pension plans and supplemental excess retirement plan for affordability and competitiveness. Income and Mining Taxes Our deferred tax assets and liabilities are measured at the currently enacted tax rates that are expected to apply in years in which they are expected to be paid for or realized.
Added
Management’s Discussion and Analysis of Financial Condition and Results of Operations 63 Overview 63 Consolidated Results of Operations 65 Greens Creek 69 Lucky Friday 71 Keno Hill 73 Casa Berardi 75 Corporate Matters 77 Reconciliation of Total Cost of Sales 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) 78 Financial Liquidity and Capital Resources 87 Contractual Obligations and Contingent Liabilities and Commitments 89 Critical Accounting Estimates 90 i New Accounting Pronouncements 92 Guarantor Subsidiaries 93 Forward-Looking Statements 94 Item 7A.
Removed
Each reporting period we assess the realizability of our tax assets. In assessing the need for a valuation allowance, we evaluate all significant available positive and negative evidence, including historical operating results, estimates of future sources of taxable income, carry-forward periods available, the existence of prudent and feasible tax planning strategies and other relevant factors.
Added
Quantitative and Qualitative Disclosures About Market Risk 95 Provisional Sales 95 Commodity-Price Risk Management 95 Foreign Currency 97 Item 8. Financial Statements and Supplementary Data 98
Removed
Our organizational structure requires us to have two U.S. tax groups that do not consolidate. Hecla Mining Company and subsidiaries (“Hecla U.S. Group”) has a net deferred tax asset of $2.9 million at December 31, 2023 compared to $21.0 million at December 31, 2022.
Removed
The decrease of $18.1 million is primarily related to utilization of tax loss carryforward and reduction of deferred tax liabilities. In 2021 a release of valuation allowance of $58.4 million was recorded, based on a change in circumstances and weight of applicable evidence reviewed to support a more likely than not conclusion for utilization of the deferred tax assets.
Removed
We are relying on all available evidence including reversal of deferred taxable temporary differences and a forecast of future taxable income along with a history of positive earnings to support the release. 74 Klondex Mines Ltd (“Klondex”) is a separate U.S. tax group (“Nevada U.S.
Removed
Group”) that has a net deferred tax liability of $30.8 million and $30.7 million at December 31, 2023 and 2022, respectively. The increase of $0.1 million is due to the tax liability of indefinite life mineral property.
Removed
Our net Canadian deferred tax liability at December 31, 2023 was $74.1 million, a decrease of $21.1 million from the $95.2 million net deferred tax liability at December 31, 2022. The decrease was due to current period activity. Our Mexican net deferred tax asset at December 31, 2023 remains at zero with no change from December 31, 2022.
Removed
The valuation allowance increased $13.2 million due to inability to recognize the benefit of tax losses incurred related to exploration activities at our operations in Mexico.
Removed
As a result of the Tax Cuts and Jobs Act (“TCJA”) enacted in December 2017, under Internal Revenue Code Section 174, a requirement to capitalize and amortize research and experimental expenditures for tax years beginning after December 31, 2021 is now effective. This modification has not materially impacted us.
Removed
As discussed in Note 7 of Notes to Consolidated Financial Statements , our effective tax rate for 2023 was negative 1%, reflecting a tax expense of $1.2 million on pre-tax loss of $83.0 million, compared to 17% for 2022, reflecting a tax benefit of $7.6 million on a pre-tax loss of $44.9 million.
Removed
We are subject to income taxes in the United States and other foreign jurisdictions. The overall effective tax rate will continue to be dependent upon the geographic distribution of our earnings in different jurisdictions, the U.S. deduction for percentage depletion, fluctuation in foreign currency exchange rates and deferred tax asset valuation allowance changes.
Removed
As a result, the 2023 effective tax rate could vary significantly from that of 2022. The other relevant provisions of the TCJA that became effective in 2018 consist of global intangible low-taxed income tax and base erosion and anti-abuse tax; however, these provisions have not materially impacted us.
Removed
Reconciliation of Total Cost of Sales 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) The tables below present reconciliations between the most comparable GAAP measure of total cost of sales to the non-GAAP measures of (i) Cash Cost, Before By-product Credits, (ii) Cash Cost, After By-product Credits, (iii) AISC, Before By-product Credits and (iv) AISC, After By-product Credits for our operations and for the Company for the years ended December 31, 2023, 2022 and 2021.
Removed
Cash Cost, After By-product Credits, per Ounce and AISC, After By-product Credits, per Ounce are measures developed by precious metals companies (including the Silver Institute and the World Gold Council) in an effort to provide a uniform standard for comparison purposes.
Removed
There can be no assurance, however, that these non-GAAP measures as we report them are the same as those reported by other mining companies. Cash Cost, After By-product Credits, per Ounce is an important operating statistic that we utilize to measure each mine's operating performance.
Removed
We use AISC, After By-product Credits, per Ounce as a measure of our mines' net cash flow after costs for reclamation and sustaining capital. This is similar to the Cash Cost, After By-product Credits, per Ounce non-GAAP measure we report, but also includes reclamation and sustaining capital costs.
Removed
Current GAAP measures used in the mining industry, such as cost of goods sold, do not capture all the expenditures incurred to discover, develop and sustain silver and gold production.
Removed
Cash Cost, After By-product Credits, per Ounce and AISC, After By-product Credits, per Ounce also allow us to benchmark the performance of each of our mines versus those of our competitors.
Removed
As a silver and gold mining company, we also use these statistics on an aggregate basis - aggregating the Greens Creek and Lucky Friday mines to compare our performance with that of other silver mining companies, and aggregating Casa Berardi and Nevada Operations for comparison with other gold mining companies.
Removed
Similarly, these statistics are useful in identifying acquisition and investment opportunities as they provide a common tool for measuring the financial performance of other mines with varying geologic, metallurgical and operating characteristics.
Removed
Cash Cost, Before By-product Credits and AISC, Before By-product Credits include all direct and indirect operating cash costs related directly to the physical activities of producing metals, including mining, processing and other plant costs, third-party refining expense, on-site general and administrative costs, royalties and mining production taxes.
Removed
AISC, Before By-product Credits for each mine also includes reclamation and sustaining capital costs. AISC, Before By-product Credits for our consolidated silver properties also includes corporate costs for general and administrative expense and sustaining capital costs. By-product credits include revenues earned from all metals other than the primary metal produced at each unit.
Removed
As depicted in the tables below, by-product credits comprise an essential element of our silver unit cost structure, distinguishing our silver operations due to the polymetallic nature of their orebodies.
Removed
In addition to the uses described above, Cash Cost, After By-product Credits, per Ounce and AISC, After By-product Credits, per Ounce provide management and investors an indication of operating cash flow, after consideration of the average price received 75 from production.
Removed
We also use these measurements for the comparative monitoring of performance of our mining operations period-to-period from a cash flow perspective.
Removed
In addition to the uses described above, Cash Cost, After By-product Credits, per Ounce and AISC, After By-product Credits, per Ounce provide management and investors an indication of operating cash flow, after consideration of the average price received from production.
Removed
We also use these measurements for the comparative monitoring of performance of our mining operations period-to-period from a cash flow perspective.
Removed
The Casa Berardi and Nevada Operations and combined gold properties information below reports Cash Cost, After By-product Credits, per Gold Ounce and AISC, After By-product Credits, per Gold Ounce for the production of gold, their primary product, and by-product revenues earned from silver, which is a by-product at Casa Berardi and Nevada Operations.
Removed
Only costs and ounces produced relating to units with the same primary product are combined to represent Cash Cost, After By-product Credits, per Ounce and AISC, After By-product Credits, per Ounce.
Removed
Thus, the gold produced at our Casa Berardi and Nevada Operations units is not included as a by-product credit when calculating Cash Cost, After By-product Credits, per Silver Ounce and AISC, After By-product Credits, per Silver Ounce for the total of Greens Creek and Lucky Friday, our combined silver properties.
Removed
Similarly, the silver produced at our other two units is not included as a by-product credit when calculating the gold metrics for Casa Berardi and Nevada Operations.
Removed
In thousands (except per ounce amounts) Year Ended December 31, 2023 Greens Creek Lucky Friday (2) Keno Hill Corporate and Other (3) Total Silver Total cost of sales $ 259,895 $ 84,185 $ 35,518 $ — $ 379,598 Depreciation, depletion and amortization (53,995 ) (24,325 ) (4,277 ) — (82,597 ) Treatment costs 40,987 10,981 1,070 — 53,038 Change in product inventory (4,266 ) (5,164 ) — — (9,430 ) Reclamation and other costs (748 ) (826 ) — — (1,574 ) Exclusion of Lucky Friday cash costs (8) — (851 ) — — (851 ) Exclusion of Keno Hill cash costs (6) — — (32,311 ) — (32,311 ) Cash Cost, Before By-product Credits (1) 241,873 64,000 — — 305,873 Reclamation and other costs 2,889 671 — — 3,560 Sustaining capital 41,935 39,019 — 928 81,882 Exclusion of Lucky Friday sustaining costs (8) — (19,702 ) — — (19,702 ) General and administrative — — — 42,722 42,722 AISC, Before By-product Credits (1) 286,697 83,988 — 43,650 414,335 By-product credits: Zinc (83,454 ) (14,507 ) — — (97,961 ) Gold (104,507 ) — — — (104,507 ) Lead (29,284 ) (34,620 ) — — (63,904 ) Exclusion of Lucky Friday by-product credits (8) — 1,566 — — 1,566 Total By-product credits (217,245 ) (47,561 ) — — (264,806 ) Cash Cost, After By-product Credits $ 24,628 $ 16,439 $ — $ — $ 41,067 AISC, After By-product Credits $ 69,452 $ 36,427 $ — $ 43,650 $ 149,529 Ounces produced 9,732 3,086 12,818 Exclusion of Lucky Friday ounces produced (8) — (103 ) (103 ) Divided by silver ounces produced 9,732 2,983 12,715 Cash Cost, Before By-product Credits, per Silver Ounce $ 24.85 $ 21.45 $ 24.06 By-product credits per ounce (22.32 ) (15.94 ) (20.83 ) Cash Cost, After By-product Credits, per Silver Ounce $ 2.53 $ 5.51 $ 3.23 AISC, Before By-product Credits, per Silver Ounce $ 29.46 $ 28.15 $ 32.59 By-product credits per ounce (22.32 ) (15.94 ) (20.83 ) AISC, After By-product Credits, per Silver Ounce $ 7.14 $ 12.21 $ 11.76 76 In thousands (except per ounce amounts) Year Ended December 31, 2023 Casa Berardi Nevada Operations and Other (4) Total Gold Total cost of sales $ 221,341 $ 6,339 $ 227,680 Depreciation, depletion and amortization (66,037 ) (140 ) (66,177 ) Treatment costs 1,109 — 1,109 Change in product inventory (2,913 ) — (2,913 ) Reclamation and other costs (871 ) — (871 ) Exclusion of Casa Berardi cash costs (3) (2,851 ) — (2,851 ) Exclusion of Nevada Operations and Other costs — (6,199 ) (6,199 ) Cash Cost, Before By-product Credits (1) 149,778 — 149,778 Reclamation and other costs 871 — 871 Sustaining capital 34,971 — 34,971 AISC, Before By-product Credits (1) 185,620 — 185,620 By-product credits: Silver (522 ) — (522 ) Total By-product credits (522 ) — (522 ) Cash Cost, After By-product Credits $ 149,256 $ — $ 149,256 AISC, After By-product Credits $ 185,098 $ — $ 185,098 Divided by gold ounces produced 90 — 90 Cash Cost, Before By-product Credits, per Gold Ounce $ 1,658 $ — $ 1,658 By-product credits per ounce (6 ) — (6 ) Cash Cost, After By-product Credits, per Gold Ounce $ 1,652 $ — $ 1,652 AISC, Before By-product Credits, per Gold Ounce $ 2,054 $ — $ 2,054 By-product credits per ounce (6 ) — (6 ) AISC, After By-product Credits, per Gold Ounce $ 2,048 $ — $ 2,048 77 In thousands (except per ounce amounts) Year Ended December 31, 2023 Total Silver Total Gold Total Total cost of sales $ 379,598 $ 227,680 $ 607,278 Depreciation, depletion and amortization (82,597 ) (66,177 ) (148,774 ) Treatment costs 53,038 1,109 54,147 Change in product inventory (9,430 ) (2,913 ) (12,343 ) Reclamation and other costs (1,574 ) (871 ) (2,445 ) Exclusion of Lucky Friday cash costs (8) (851 ) — (851 ) Exclusion of Keno Hill cash costs (6) (32,311 ) — (32,311 ) Exclusion of Casa Berardi cash costs (3) — (2,851 ) (2,851 ) Exclusion of Nevada Operations and Other costs — (6,199 ) (6,199 ) Cash Cost, Before By-product Credits (1) 305,873 149,778 455,651 Reclamation and other costs 3,560 871 4,431 Sustaining capital 81,882 34,971 116,853 Exclusion of Lucky Friday sustaining costs (8) (19,702 ) — (19,702 ) General and administrative 42,722 — 42,722 AISC, Before By-product Credits (1) 414,335 185,620 599,955 By-product credits: Zinc (97,961 ) — (97,961 ) Gold (104,507 ) — (104,507 ) Lead (63,904 ) — (63,904 ) Silver — (522 ) (522 ) Exclusion of Lucky Friday by-product credits (8) 1,566 — 1,566 Total By-product credits (264,806 ) (522 ) (265,328 ) Cash Cost, After By-product Credits $ 41,067 $ 149,256 $ 190,323 AISC, After By-product Credits $ 149,529 $ 185,098 $ 334,627 Ounces produced $ 12,818 $ 90 Exclusion of Lucky Friday ounces produced (8) (103 ) — Divided by ounces produced 12,715 90 Cash Cost, Before By-product Credits, per Ounce $ 24.06 $ 1,658 By-product credits per ounce (20.83 ) (6 ) Cash Cost, After By-product Credits, per Ounce $ 3.23 $ 1,652 AISC, Before By-product Credits, per Ounce $ 32.59 $ 2,054 By-product credits per ounce (20.83 ) (6 ) AISC, After By-product Credits, per Ounce $ 11.76 $ 2,048 78 In thousands (except per ounce amounts) Year Ended December 31, 2022 Greens Creek Lucky Friday (2) Corporate and other (3) Total Silver Total cost of sales $ 232,718 $ 116,598 $ — $ 349,316 Depreciation, depletion and amortization (48,911 ) (33,704 ) — (82,615 ) Treatment costs 37,836 18,605 — 56,441 Change in product inventory 5,885 2,049 — 7,934 Reclamation and other costs (5) (1,489 ) (1,034 ) — (2,523 ) Cash Cost, Before By-product Credits (1) 226,039 102,514 — 328,553 Reclamation and other costs 2,821 1,128 — 3,949 Sustaining capital 40,705 33,306 334 74,345 General and administrative (5) — — 43,384 43,384 AISC, Before By-product Credits (1) 269,565 136,948 43,718 450,231 By-product credits: Zinc (113,835 ) (27,607 ) (141,442 ) Gold (75,596 ) — (75,596 ) Lead (29,800 ) (52,568 ) (82,368 ) Total By-product credits (219,231 ) (80,175 ) — (299,406 ) Cash Cost, After By-product Credits $ 6,808 $ 22,339 $ — $ 29,147 AISC, After By-product Credits $ 50,334 $ 56,773 $ 43,718 $ 150,825 Divided by silver ounces produced 9,742 4,413 14,155 Cash Cost, Before By-product Credits, per Silver Ounce $ 23.20 $ 23.23 $ 23.21 By-product credits per ounce (22.50 ) (18.17 ) (21.15 ) Cash Cost, After By-product Credits, per Silver Ounce $ 0.70 $ 5.06 $ 2.06 AISC, Before By-product Credits, per Silver Ounce $ 27.67 $ 31.03 $ 31.81 By-product credits per ounce (22.50 ) (18.17 ) (21.15 ) AISC, After By-product Credits, per Silver Ounce $ 5.17 $ 12.86 $ 10.66 In thousands (except per ounce amounts) Year Ended December 31, 2022 Casa Berardi (6) Nevada Operations (4) Total Gold Total cost of sales $ 248,898 $ 4,535 $ 253,433 Depreciation, depletion and amortization (60,962 ) (361 ) (61,323 ) Treatment costs 1,866 — 1,866 Change in product inventory 186 — 186 Reclamation and other costs (5) (819 ) — (819 ) Exclusion of Nevada Operations and Other costs (4,174 ) (4,174 ) Cash Cost, Before By-product Credits (1) 189,169 — 189,169 Reclamation and other costs 819 — 819 Sustaining capital 36,883 — 36,883 AISC, Before By-product Credits (1) 226,871 — 226,871 By-product credits: Silver (610 ) — (610 ) Total By-product credits (610 ) — (610 ) Cash Cost, After By-product Credits $ 188,559 $ — $ 188,559 AISC, After By-product Credits $ 226,261 $ — $ 226,261 Divided by gold ounces produced 128 — 128 Cash Cost, Before By-product Credits, per Gold Ounce $ 1,483 — $ 1,483 By-product credits per ounce (5 ) — (5 ) Cash Cost, After By-product Credits, per Gold Ounce $ 1,478 $ — $ 1,478 AISC, Before By-product Credits, per Gold Ounce $ 1,778 — $ 1,778 By-product credits per ounce (5 ) — (5 ) AISC, After By-product Credits, per Gold Ounce $ 1,773 $ — $ 1,773 79 In thousands (except per ounce amounts) Year Ended December 31, 2022 Total Silver Total Gold Total Total cost of sales $ 349,316 $ 253,433 $ 602,749 Depreciation, depletion and amortization (82,615 ) (61,323 ) (143,938 ) Treatment costs 56,441 1,866 58,307 Change in product inventory 7,934 186 8,120 Exclusion of Nevada Operations and Other — (4,174 ) (4,174 ) Reclamation and other costs (2,523 ) (819 ) (3,342 ) Cash Cost, Before By-product Credits (1) 328,553 189,169 517,722 Reclamation and other costs 3,949 819 4,768 Sustaining capital 74,345 36,883 111,228 General and administrative 43,384 — 43,384 AISC, Before By-product Credits (1) 450,231 226,871 677,102 By-product credits: Zinc (141,442 ) — (141,442 ) Gold (75,596 ) — (75,596 ) Lead (82,368 ) — (82,368 ) Silver — (610 ) (610 ) Total By-product credits (299,406 ) (610 ) (300,016 ) Cash Cost, After By-product Credits $ 29,147 $ 188,559 $ 217,706 AISC, After By-product Credits $ 150,825 $ 226,261 $ 377,086 Divided by ounces produced 14,155 128 Cash Cost, Before By-product Credits, per Ounce $ 23.21 $ 1,483 By-product credits per ounce (21.15 ) (5 ) Cash Cost, After By-product Credits, per Ounce $ 2.06 $ 1,478 AISC, Before By-product Credits, per Ounce $ 31.81 $ 1,778 By-product credits per ounce (21.15 ) (5 ) AISC, After By-product Credits, per Ounce $ 10.66 $ 1,773 In thousands (except per ounce amounts) Year Ended December 31, 2021 Greens Creek Lucky Friday (2) Corporate and other (3) Total Silver Total cost of sales $ 213,113 $ 97,538 $ 247 $ 310,898 Depreciation, depletion and amortization (48,710 ) (26,846 ) (152 ) (75,708 ) Treatment costs 36,099 16,723 0 52,822 Change in product inventory 80 (406 ) — (326 ) Reclamation and other costs (3,466 ) (1,039 ) (95 ) (4,600 ) Cash Cost, Before By-product Credits (1) 197,116 85,970 — 283,086 Reclamation and other costs 3,390 1,056 4,446 Sustaining capital 27,582 26,517 210 54,309 General and administrative (5) — — 34,570 34,570 AISC, Before By-product Credits (1) 228,088 113,543 34,780 376,411 By-product credits: Zinc (100,214 ) (19,479 ) — (119,693 ) Gold (72,011 ) — — (72,011 ) Lead (30,922 ) (42,966 ) — (73,888 ) Total By-product credits (203,147 ) (62,445 ) — (265,592 ) Cash Cost, After By-product Credits $ (6,031 ) $ 23,525 $ — $ 17,494 AISC, After By-product Credits $ 24,941 $ 51,098 $ 34,780 $ 110,819 Divided by silver ounces produced 9,243 3,564 12,807 Cash Cost, Before By-product Credits, per Silver Ounce $ 21.33 $ 24.12 $ 22.11 By-product credits per ounce (21.98 ) $ (17.52 ) (20.74 ) Cash Cost, After By-product Credits, per Silver Ounce $ (0.65 ) $ 6.60 $ 1.37 AISC, Before By-product Credits, per Silver Ounce $ 24.68 $ 31.86 $ 29.39 By-product credits per ounce (21.98 ) $ (17.52 ) (20.74 ) AISC, After By-product Credits, per Silver Ounce $ 2.70 $ 14.34 $ 8.65 80 In thousands (except per ounce amounts) Year Ended December 31, 2021 Casa Berardi Nevada Operations (4) Total Gold Total cost of sales $ 229,829 $ 48,945 $ 278,774 Depreciation, depletion and amortization (80,744 ) (15,341 ) (96,085 ) Treatment costs 1,513 1,731 3,244 Change in product inventory 2,439 (10,907 ) (8,468 ) Reclamation and other costs (841 ) 300 (541 ) Cash Cost, Before By-product Credits (1) 152,196 24,728 176,924 Reclamation and other costs 841 1,008 1,849 Sustaining capital 30,643 511 31,154 AISC, Before By-product Credits (1) 183,680 26,247 209,927 By-product credits: Silver (839 ) (1,152 ) (1,991 ) Total By-product credits (839 ) (1,152 ) (1,991 ) Cash Cost, After By-product Credits $ 151,357 $ 23,576 $ 174,933 AISC, After By-product Credits $ 182,841 $ 25,095 $ 207,936 Divided by gold ounces produced 135 21 155 Cash Cost, Before By-product Credits, per Gold Ounce $ 1,131 $ 1,193 $ 1,140 By-product credits per ounce (6 ) (56 ) (13 ) Cash Cost, After By-product Credits, per Gold Ounce $ 1,125 $ 1,137 $ 1,127 AISC, Before By-product Credits, per Gold Ounce $ 1,365 $ 1,267 $ 1,354 By-product credits per ounce (6 ) (56 ) (13 ) AISC, After By-product Credits, per Gold Ounce $ 1,359 $ 1,211 $ 1,341 In thousands (except per ounce amounts) Year Ended December 31, 2021 Total Silver Total Gold Total Total cost of sales $ 310,898 $ 278,774 $ 589,672 Depreciation, depletion and amortization (75,708 ) (96,085 ) (171,793 ) Treatment costs 52,822 3,244 56,066 Change in product inventory (326 ) (8,468 ) (8,794 ) Reclamation and other costs (4,600 ) (541 ) (5,141 ) Cash Cost, Before By-product Credits (1) 283,086 176,924 460,010 Reclamation and other costs 4,446 1,849 6,295 Sustaining capital 54,309 31,154 85,463 General and administrative 34,570 — 34,570 AISC, Before By-product Credits (1) 376,411 209,927 586,338 By-product credits: Zinc (119,693 ) — (119,693 ) Gold (72,011 ) — (72,011 ) Lead (73,888 ) — (73,888 ) Silver — (1,991 ) (1,991 ) Total By-product credits (265,592 ) (1,991 ) (267,583 ) Cash Cost, After By-product Credits $ 17,494 $ 174,933 $ 192,427 AISC, After By-product Credits $ 110,819 $ 207,936 $ 318,755 Divided by ounces produced 12,807 155 Cash Cost, Before By-product Credits, per Ounce $ 22.11 $ 1,140 By-product credits per ounce (20.74 ) (13 ) Cash Cost, After By-product Credits, per Ounce $ 1.37 $ 1,127 AISC, Before By-product Credits, per Ounce $ 29.39 $ 1,354 By-product credits per ounce (20.74 ) (13 ) AISC, After By-product Credits, per Ounce $ 8.65 $ 1,341 (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.
Removed
AISC, Before By-product Credits also includes reclamation and sustaining capital costs. 81 (2) AISC, Before By-product Credits for our consolidated silver properties includes corporate costs for general and administrative expense and sustaining capital.
Removed
(3) During the three months ended March 31, 2023, the Company completed the necessary studies to conclude usage of the F-160 pit as a tailings storage facility after mining is complete. As a result, a portion of the mining costs have been excluded from Cash Cost, Before By-product Credits and AISC, Before By-product Credits.
Removed
(4) Other includes $5.3 million of sales and cost of sales for the year ended December 31, 2023 and $0.5 million of sales and cost of sales for the year ended December 31, 2022, related to the environmental services business acquired as part of the Alexco acquisition.
Removed
(5) Prior years presentation has been adjusted to conform with current year presentation to eliminate exploration costs from the calculation of AISC, Before By-product Credits as exploration is an activity directed at the Corporate level to find new mineral reserve and resource deposits, and therefore we believe it is inappropriate to include exploration costs in the calculation of AISC, Before By-product Credits for a specific mining operation.
Removed
(6) Keno Hill is in the production ramp-up phase and $29.8 million of ramp-up costs are excluded from the calculation of total cost of sales, Cash Cost, Before By-product Credits, Cash Cost, After By-product Credits, AISC, Before By-product Credits, and AISC, After By-product Credits.
Removed
(7) Casa Berardi operations were suspended in June 2023 in response to the directive of the Quebec Ministry of Natural Resources and Forests as a result of fires in the region.
Removed
Suspension costs amounted to $2.2 million for the year ended December 31, 2023, and are excluded from the calculation of total cost of sales, Cash Cost, Before By-product Credits, Cash Cost, After By-product Credits, AISC, Before By-product Credits, and AISC, After By-product Credits.
Removed
(8) Lucky Friday operations were suspended in August 2023 following the underground fire in the #2 shaft secondary egress.
Removed
The portion of cash costs, sustaining costs, by-product credits, and silver production incurred since the suspension are excluded from the calculation of total cost of sales, Cash Cost, Before By-product Credits, Cash Cost, After By-product Credits, and AISC, Before By-product Credits, and AISC, After By-product Credits.
Removed
Financial Liquidity and Capital Resources Liquidity overview We have a disciplined cash management strategy of maintaining financial flexibility to execute our capital priorities and provide long-term value to our stockholders.
Removed
Consistent with that strategy, we aim to maintain an acceptable level of net debt and sufficient liquidity to fund debt service costs, operations, capital expenditures, exploration and pre-development projects, while returning cash to stockholders through dividends and potential share repurchases.
Removed
At December 31, 2023, we had $106.4 million in cash and cash equivalents, of which $7.6 million was held in foreign subsidiaries' local currency that we anticipate utilizing for near-term operating, exploration or capital costs by those foreign subsidiaries.
Removed
At December 31, 2023, we had utilized $134.9 million drawn on our credit facility with $6.9 million for letters of credit and the remainder as borrowings. We also have USD cash and cash equivalent balances held by our foreign subsidiaries that, if repatriated, may be subject to withholding taxes.
Removed
We expect that there would be no additional tax burden upon repatriation after considering the cash cost associated with the withholding taxes. Our liquidity and capital resources are reliant on our revolving credit facility and other financing activities in addition to cash provided by our operations.
Removed
Pursuant to our common stock dividend policy described in Note 12 of Notes to Consolidated Financial Statements , our Board of Directors declared and paid dividends on common stock totaling $15.2 million in 2023, $12.4 million in 2022 and $20.1 million in 2021.
Removed
Our dividend policy has a silver-linked component which ties the amount of declared common stock dividends to our realized silver price for the preceding quarter. Another component of our common stock dividend policy anticipates paying an annual minimum dividend.
Removed
In each of May and September 2021, our Board of Directors approved an increase in our silver-linked dividend policy by $0.01 per year, and in September 2021 also approved a reduction in the minimum realized silver price threshold to $20 from $25 per ounce.
Removed
We realized silver prices of $22.62, $23.67, $23.71 and $23.47 in the first, second, third and fourth quarters of 2023, respectively, thus satisfying the criterion for the silver-linked dividend component of our common stock dividend policy.
Removed
As a result, on May 10, 2023, August 8, 2023, November 6, 2023, and February 13, 2024 our Board of Directors declared quarterly cash dividends of $0.00625 per share of common stock, consisting of $0.00375 per share for the minimum dividend component and $0.0025 per share for the silver-linked dividend component of our dividend policy. 82 For illustrative purposes only, the table below summarizes potential dividend amounts under our dividend policy.
Removed
Quarterly Average Realized Silver Price ($ 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) $ — $ — $ 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 As discussed in Note 12 of Notes to Consolidated Financial Statements , pursuant to an equity distribution agreement dated February 18, 2021, we may offer and sell up to 60 million shares of our common stock from time to time to or through sales agents in “at-the-market” (ATM) offerings.
Removed
Sales of the shares, if any, will be made by means of ordinary brokers transactions or as otherwise agreed between the Company and the agents as principals.
Removed
Whether or not we engage in sales from time to time may depend on a variety of factors, including share price, our cash resources, customary black-out restrictions, and whether we have any material inside information. The agreement can be terminated by us at any time.
Removed
Any sales of shares under the equity distribution agreement are registered under the Securities Act of 1933, as amended, pursuant to a shelf registration statement on Form S-3. During March, April and December 2023, we sold 10,645,198 shares under the agreement for proceeds of $56.7 million, net of commissions and fees of approximately $0.9 million.
Removed
In total since September 2022 through December 31, 2023, we have sold 14,505,397 shares under the agreement for total proceeds of $74.0 million, net of commissions and fees of $1.2 million.
Removed
As a result of our current cash balances, the performance of our current and expected operations, current metals prices, proceeds from potential at-the-market sales of common stock, and availability under our Credit Agreement (refer to Note 9 of Notes to Consolidated Financial Statements) , we believe we will be able to meet our obligations and other potential cash requirements during the next 12 months from the date of this report.
Removed
Our obligations and other uses of cash may include, but are not limited to: debt service obligations related to the Senior Notes and our Series 2020-A Senior Notes due July 9, 2025 (the “IQ Notes”) issued to Investissement Québec, a financing arm of the Québec government, which have total principal of CAD$48.2 million and bear interest at a rate of 6.515%; principal and interest payments under our Credit Agreement; deferral of revenues, ramp-up and suspension costs at certain of our operations; capital expenditures at our operations; potential acquisitions of other mining companies or properties; regulatory matters; litigation; potential repurchases of our common stock under the program described above; and payment of dividends on common stock, if declared by our board of directors.
Removed
We currently estimate a range of approximately $190 to $210 million will be spent in 2024 on capital expenditures, primarily for equipment, infrastructure, and development at our mines, before any lease financing. We also estimate exploration and pre-development expenditures will total approximately $32 million in 2024.
Removed
Our expenditures for these items and our related plans for 2024 may change based upon our financial position, metals prices, and other considerations. Our ability to fund the activities described above will depend on our operating performance, metals prices, our ability to estimate revenues and costs, sources of liquidity available to us, including the revolving credit facility, and other factors.
Removed
A sustained downturn in metals prices, significant increase in operational or capital costs or other uses of cash, our inability to access the credit facility or the sources of liquidity discussed above, or other factors beyond our control could impact our plans. See Item 1A.
Removed
Risk Factors - An extended decline in metals prices, an increase in operating or capital costs, or treatment charges, mine accidents or closures, increasing regulatory obligations, or our inability to convert resources or exploration targets to reserves may cause us to record write-downs, which could negatively impact our results of operations and We have a substantial amount of debt that could impair our financial health and prevent us from fulfilling our obligations under our existing and future indebtedness.
Removed
We may defer some capital expenditures and/or exploration and pre-development activities, engage in asset sales or secure additional capital if necessary to maintain liquidity. We also may pursue additional acquisition opportunities, which could require additional equity issuances or other forms of financing.
Removed
We cannot assure you that such financing will be available to us. 83 Our liquid assets excluding restricted cash and cash equivalents include (in millions): December 31, 2023 December 31, 2022 December 31, 2021 Cash and cash equivalents held in U.S. dollars $ 98.8 $ 86.8 $ 196.2 Cash and cash equivalents held in foreign currency 7.6 17.9 13.8 Total cash and cash equivalents 106.4 104.7 210.0 Marketable equity securities 33.7 24.0 14.4 Total cash, cash equivalents and investments $ 140.1 $ 128.7 $ 224.4 Cash and cash equivalents increased by $1.7 million in 2023, for the reasons discussed below.
Removed
Cash and cash equivalents held in foreign currencies represents balances in CAD, and decreased by $10.3 million in 2023 due to a decrease in CAD held at our Canadian operations. The value of current and non-current marketable equity securities increased by $9.7 million.
Removed
Year Ended December 31, 2023 2022 2021 Cash provided by operating activities (in millions) $ 75.5 $ 89.9 $ 220.3 Cash provided by operating activities decreased by $14.4 million in 2023 compared to 2022.
Removed
The decrease was due to lower income, adjusted for non-cash items, further compounded by the negative impact of working capital and other operating asset and liability changes.
Removed
Income, adjusted for non-cash items, was lower by $4.8 million primarily due to increased loss from operations, which was mainly a result of higher ramp-up and suspension costs associated with continued ramp-up at Keno Hill and suspension of operations at Lucky Friday.
Removed
Working capital and other operating asset and liability changes resulted in a net cash decrease of $9.6 million in 2023 compared to 2022. Significant variances in working capital changes between 2023 and 2022 resulted from lower cash flows from changes in other current and non-current assets and accrued payroll and related benefits.
Removed
Cash provided by operating activities decreased by $130.4 million in 2022 compared to 2021. The decrease was due to lower income, adjusted for non-cash items, further compounded by the negative impact of working capital and other operating asset and liability changes.
Removed
Income, adjusted for non-cash items, was lower by $82.3 million primarily due to lower income from operations, which was mainly a result of lower realized silver, lead and zinc prices, higher treatment charges and an insignificant contribution from the Nevada Operations in 2022.
Removed
Working capital and other operating asset and liability changes resulted in a net cash decrease of $29.3 million in 2022 compared to an increase in cash of $18.9 million in 2021. Significant variances in working capital changes between 2022 and 2021 resulted from lower cash flows from changes in inventories and accounts payable and accrued liabilities.
Removed
Year Ended December 31, 2023 2022 2021 Cash used in investing activities (in millions) $ (231.3 ) $ (187.3 ) $ (107.0 ) Capital expenditures, excluding $16.1 million in non-cash finance lease additions, were $223.9 million in 2023, which was $74.5 million higher than 2022.
Removed
The major components of this increase were from an increase of $30.4 million at Casa Berardi primarily due to purchases of new surface fleet equipment as the mine transitions from an underground to an open pit operation and the construction of tailings storage facilities, an increase of $24.9 million at Keno Hill related to mine development, mobile equipment purchases, crusher modifications and camp upgrades, and an increase of $14.3 million at Lucky Friday as investments were made to support sustained higher throughput and costs were incurred to build the secondary egress following the August 2023 fire.
Removed
During 2023, we acquired investments in other mining companies and short term investments for a total of $9.0 million. Capital expenditures, excluding $11.9 million in non-cash finance lease additions, were $149.4 million in 2022, which was $40.3 million higher than 2021.
Removed
The increase included $19.7 million for Keno Hill following the Alexco acquisition and higher expenditures at Greens Creek and Lucky Friday, partially offset by lower expenditures at Casa Berardi.

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Item 6. [Reserved]

Selected Financial Data — reserved (removed by SEC in 2021)

11 edited+92 added−11 removed10 unchanged
Biggest changeKey Issues Impacting our Business Our current business strategy is to focus our financial and human resources in the following areas: • executing value enhancing transactions, such as with the recently completed ATAC acquisition; • advancing the development and ramp up of the Keno Hill mine with the anticipation of commencement of commercial production before the end of 2024; • 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 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 the Keno Hill mining district in the Yukon Territory, Canada; 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 the Libby Exploration project in Montana; and • seeking opportunities to acquire and invest in mining and exploration properties and companies.
Biggest changeSee the Consolidated Results of Operations section below for a discussion of the factors impacting income applicable to common stockholders for the three years ended December 31, 2024, 2023 and 2022. 63 Key Issues Impacting our Business Our current business strategy is to focus our financial and human resources in the following areas: • operating our properties safely, in an environmentally responsible and cost-effective manner; • strengthen balance sheet to preserve our financial position in varying metals price and operational environments, improve capital allocation framework with a focus on ROIC and increasing free cash flow; • improving and optimizing operations at all sites, which includes incurring costs for new technologies and equipment, and implementing standardized systems and processes; • optimize asset portfolio and identify growth opportunities; • expanding our proven and probable reserves, mineral resources and production capacity at our properties; • advancing the development and ramp up of the Keno Hill mine to profitability; • seeking opportunities to acquire and invest in mining and exploration properties and companies; • advancing permitting of the Libby Exploration project in Montana; • enhance ESG performance and risk management systems; • build high-performing teams and strengthen organizational capabilities; and • maintaining and investing in exploration and pre-development projects in the vicinities of 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; our projects located in two districts in Nevada; our projects in the Keno Hill mining district in the Yukon Territory, Canada; northwestern Montana; and the Republic Mining District in Washington state.
Our reserve and resource estimates, which underlie (i) our mining and investment plans, (ii) the valuation of a significant portion of our long-term assets and (iii) depreciation, depletion and amortization expense, may change based on economic factors and actual production experience.
Our reserve and resource estimates, which underlie (i) our mining and investment plans, (ii) the valuation of a significant portion of our long-term assets and (iii) depreciation, depletion and 64 amortization expense, may change based on economic factors and actual production experience.
We are involved in various environmental legal matters and the estimate of our environmental liabilities and liquidity needs, as well as our strategic plans, may be 62 significantly impacted as a result of these matters or new matters that may arise.
We are involved in various environmental legal matters and the estimate of our environmental liabilities and liquidity needs, as well as our strategic plans, may be significantly impacted as a result of these matters or new matters that may arise.
We utilize forward contracts to manage exposure to declines in the prices of (i) silver, gold, zinc and lead contained in our concentrates that have been shipped but have not yet settled, and (ii) from time to time zinc and lead that we forecast for future concentrate shipments.
We utilize forward contracts to manage exposure to declines in the prices of (i) silver, gold, zinc and lead contained in our concentrates that have been shipped but have not yet settled, and (ii) from time to time zinc and lead that we forecast for future concentrate shipments. In addition, we have in place a $225.0 million revolving credit agreement.
Until ore is mined and processed, the volumes and grades of our reserves and resources must be considered as estimates. Our reserves are depleted as we mine. Reserves and resources can also change as a result of changes in economic and operating assumptions. See
Until ore is mined and processed, the volumes and grades of our reserves and resources must be considered as estimates. Our reserves are depleted as we mine. Reserves and resources can also change as a result of changes in economic and operating assumptions. See Item 1A. Risk Factors - Our mineral reserve and resource estimates may be imprecise.
Item 6. Res erved Not applicable 60 Item 7.
Item 6. Res erved Not applicable 62 Item 7.
Another challenge for us is the risk associated with environmental litigation and ongoing reclamation activities. As described in Item 1A. Risk Factors and in Note 16 of Notes to Consolidated Financial Statements, it is possible that our estimate of these liabilities (and our ability to estimate liabilities in general) may change in the future, affecting our strategic plans.
Risk Factors and in Note 16 of Notes to Consolidated Financial Statements, it is possible that our estimate of these liabilities may change in the future, affecting our strategic plans.
Our average realized prices for silver, gold and lead increased in 2023 compared to 2022 while zinc decreased. Our average realized gold price increased while our realized price for silver, lead and zinc prices decreased in 2022 compared to 2021.
Our average realized prices for silver, gold and zinc increased in 2024 compared to 2023 while lead decreased. Our average realized silver, gold and lead increased while zinc decreased in 2023 compared to 2022. See the Consolidated Results of Operations section below for information on our average realized metals prices for 2024, 2023 and 2022.
See the Consolidated Results of Operations section below for information on our average realized metals prices for 2023, 2022 and 2021. Lead 61 and zinc represent important by-products at our Greens Creek and Lucky Friday segments, and gold is also a significant by-product at Greens Creek.
Lead and zinc represent important by-products at our Greens Creek and Lucky Friday segments, and gold is also a significant by-product at Greens Creek. Copper is a minor by-product credit at Greens Creek, in addition to lead and zinc at Keno Hill.
In addition, we are developing the Keno Hill mine in the Yukon Territory, Canada which we acquired in September 2022. We began ramp-up of the Keno Hill mill during the second quarter of 2023, with production commencing in June 2023.
We acquired our Keno Hill operations as part of the Alexco acquisition in September 2022 and have focused on development activities and began ramp-up of the mill during the second quarter of 2023.
Over view Established in 1891, we are the oldest operating precious metals mining company in the United States. We are the largest silver producer in the United States, producing over 45% of 2022 U.S. silver production at our Greens Creek and Lucky Friday operations. We also produce gold at our Casa Berardi and Greens Creek operations.
Over view Hecla Mining Company stands as North America's leading silver producer, with a rich heritage dating back to 1891. Our operations at Greens Creek and Lucky Friday, produced 45% of 2023 U.S. silver production, complemented by significant gold production from Casa Berardi and Greens Creek. We began ramp-up of the Keno Hill mill during the second quarter of 2023.
Removed
Based upon the jurisdictions in which we operate, we believe we have lower political and economic risk compared to other mining companies whose mines are located in other parts of the world. Our current exploration interests are located in the United States, Canada and Mexico.
Added
Our strategic positioning in the stable jurisdictions of U.S. and Canada provides us with distinct operational advantages and reduced political risk compared to our global peers. Our operational and strategic framework centers on three core pillars: 1. Sustainable production growth 2. Resource development 3.
Removed
Our operating and strategic framework is based on expanding our production and locating and developing new resource potential in a safe and responsible manner. Acquisition of ATAC Resources Ltd. On July 7, 2023, we completed the acquisition of ATAC Resources Ltd.
Added
Operational excellence and safety 2024 Highlights Operational Achievements: • Production - Delivered 16.2 million ounces of silver and 141,923 ounces of gold.
Removed
("ATAC"), a Canadian publicly traded company, for total consideration of approximately $19.4 million through the issuance of 3,676,904 shares of Hecla common stock to ATAC shareholders based on the share exchange ratio of 0.0166 Hecla share for each ATAC common share, and $0.6 million of acquisition costs.
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See Consolidated Results of Operations below for information on total cost of sales, as well as cash costs and AISC, each after by-product credits, per silver and gold ounce for 2024, 2023 and 2022. • Lucky Friday Recovery - Successfully restored to full production in the first quarter, delivering 4.9 million ounces of silver, after operations were suspended due to an underground fire in August 2023. • Keno Hill Success - Produced 2.8 million ounces of silver, meeting production guidance of 2.7 - 3.0 million ounces, despite reduced fourth quarter throughput due to power conservation measures by Yukon Energy Corp. • Diversification Milestone - Copper became a payable metal for Greens Creek, resulting in a new revenue stream that generated $0.4 million of copper sales.
Removed
The acquisition was deemed to be an asset acquisition under GAAP as substantially all of the fair value of the gross assets acquired was concentrated in a single asset group being mineral interests. The total consideration was assigned to the estimated fair values of the assets acquired and liabilities assumed, with $18.1 million assigned to mineral interests.
Added
Financial Performance: • Revenue Generation - Achieved record sales of $929.9 million. • Shareholder Returns - Generated net income applicable to common stockholders of $35.3 million and returned $24.9 million to our common stockholders through dividend payments.
Removed
As part of the acquisition, we also acquired 5,502,956 units consisting of (i) shares of Cascadia Minerals Ltd. (“Cascadia”) representing a 19.9% stake, and (ii) full warrants with a five-year term for a CAD$2 million cash investment in Cascadia. Cascadia will be managed by the former management of ATAC, who will explore specific properties in the Yukon and British Columbia.
Added
Contributing to net income was $50.0 million in insurance proceeds related to the Lucky Friday fire. • Continued Investment in Operations - Made capital expenditures of approximately $214.5 million, including $47.8 million at Greens Creek, $49.6 million at Lucky Friday, $60.7 million at Casa Berardi and $54.9 million at Keno Hill. • Exploration - Incurred $27.3 million on exploration and pre-development activities. • Improved Liquidity - Raised $58.4 million in common stock sales under our ATM program which were utilized to make repayments on our outstanding revolving credit facility balance.
Removed
We have the right to appoint two directors to Cascadia’s board. 2023 Highlights Operational: • Produced 14.3 million ounces of silver and 151,259 ounces of gold.
Added
As of December 31, 2024, $29.2 million of the facility was utilized, with $6.2 million being used for letters of credit, $23.0 million was drawn on the facility, leaving approximately $195.8 million available for borrowing. Another challenge for us is the risk associated with environmental litigation and ongoing reclamation activities. As described in Item 1A.
Removed
See Consolidated Results of Operations below for information on total cost of sales and cash costs and AISC, after by-product credits, per silver and gold ounce for 2023, 2022 and 2021. • Keno Hill produced 1.5 million ounces of silver, with the Bermingham deposit achieving the highest mined tonnage in December; initiated a safety action plan to build a strong operational foundation at the mine. • Continued our trend of strong safety performance, as our All Injury Frequency Rate (“AIFR”) for 2023 was 1.45.
Added
Consolidated Results of Operations Total metal sales for the years ended December 31, 2024, 2023 and 2022, and the approximate variances attributed to differences in metals prices, sales volumes and smelter terms, were as follows: (in thousands) Silver Gold Base metals Less: smelter and refining charges Total sales of products 2022 $ 265,054 $ 298,910 $ 206,441 $ (51,973 ) $ 718,432 Variances - 2023 versus 2022: Price 19,682 18,044 (2,897 ) (624 ) 34,205 Volume 17,548 (42,343 ) (14,586 ) 148 (39,233 ) Smelter terms — — — 1,540 1,540 2023 302,284 274,611 188,958 (50,909 ) 714,944 Variances - 2024 versus 2023: Price 76,019 61,309 (2,873 ) 10,743 145,198 Volume 35,677 (17,664 ) 32,321 (2,485 ) 47,849 Smelter terms — — — 1,378 1,378 2024 $ 413,980 $ 318,256 $ 218,406 $ (41,273 ) $ 909,369 Average market and realized metals prices for 2024, 2023 and 2022 were as follows: Average price for the year ended December 31, 2024 2023 2022 Silver Realized price per ounce $ 28.58 $ 23.33 $ 21.53 London PM Fix ($/ounce) 28.24 23.39 21.75 Gold Realized price per ounce 2,403 1,939 1,803 London PM Fix ($/ounce) 2,387 1,943 1,801 Lead Realized price per pound 0.97 1.03 1.01 LME Final Cash Buyer ($/pound) 0.94 0.97 0.98 Zinc Realized price per pound 1.37 1.35 1.41 LME Final Cash Buyer ($/pound) $ 1.26 $ 1.20 $ 1.58 Copper Realized price per pound 4.20 — — LME Final Cash Buyer ($/pound) $ 4.15 NA NA Average realized prices differ from average market prices primarily because concentrate sales are generally recorded as revenues at the time of shipment at forward prices for the estimated month of settlement, which differ from average market prices.
Removed
Financial: • Reported sales of $720.2 million. • Generated $75.5 million in net cash provided by operating activities.
Added
Due to the time elapsed between shipment of concentrates and final settlement with customers, we must estimate the prices at which sales of our metals will be settled. Previously recorded sales are adjusted to estimated settlement metals prices each period through final settlement.
Removed
See the Financial Liquidity and Capital Resources section below for further discussion. • Made capital expenditures (excluding lease additions and other non-cash items) of approximately $223.9 million, including $70.1 million at Casa Berardi, $43.5 million at Greens Creek, $65.3 million at Lucky Friday, and $44.7 million at Keno Hill. • Returned $15.7 million to our stockholders through dividend payments.
Added
For 2024 and 2023, we recorded net positive price adjustments to provisional settlements of $22.9 million and $18.2 million, respectively, and $20.8 million in net negative price adjustments to provisional settlements in 2022.
Removed
See the Consolidated Results of Operations section below for a discussion of the factors impacting income applicable to common stockholders for the three years ended December 31, 2023, 2022 and 2021.
Added
The price adjustments related to silver, gold, zinc and lead contained in our concentrate sales were partially offset by gains and losses on forward contracts for those metals for each year (see Note 10 of Notes to Consolidated Financial Statements for more information).
Removed
In addition, we have in place a $150 million revolving credit agreement, with an option to be increased in an aggregate amount not to exceed $75 million. As of December 31, 2023, $6.9 million was used for letters of credit, and $128.0 million was drawn on the facility leaving approximately $15.1 million available for borrowing.
Added
The gains and losses on these contracts are included in revenues and impact the realized prices for silver, gold, lead and zinc.
Added
Realized prices are calculated by dividing gross revenues for each metal (which include the price adjustments and gains and losses on the forward contracts discussed above) by the payable quantities of each metal included in products sold during the period. 65 Total metals production and sales volumes for each period are shown in the following table: Year Ended December 31, 2024 2023 2022 Silver - Ounces produced 16,169,930 14,342,863 14,182,987 Payable ounces sold 14,485,158 12,955,006 12,311,595 Gold - Ounces produced 141,923 151,259 175,807 Payable ounces sold 132,442 141,602 165,818 Lead - Tons produced 52,515 40,347 48,713 Payable tons sold 44,795 35,429 41,423 Zinc - Tons produced 66,308 60,579 64,748 Payable tons sold 47,593 43,050 43,658 Copper - Tons produced 1,874 1,823 1,904 Payable tons sold 50 — — The difference between what we report as “ounces/tons produced” and “payable ounces/tons sold” is attributable to the difference between the quantities of metals contained in our products versus the portion of those metals actually paid for by our customers pursuant to of our sales contract terms.
Added
Differences can also arise from inventory changes incidental to shipping schedules, or variances in ore grades which impact the amount of metals contained in concentrates produced and sold.
Added
Sales, total cost of sales, gross profit (loss), Cash Cost, After By-product Credits, per Ounce (“Cash Cost”) (non-GAAP) and AISC (non-GAAP) at our operating units for 2024, 2023 and 2022 were as follows (in thousands, except for Cash Cost and AISC): Silver Gold Greens Creek Lucky Friday Keno Hill Total Silver (2) Casa Berardi Other (3) Total Gold 2024: Sales $ 421,574 $ 203,154 $ 74,962 $ 699,690 $ 209,679 $ 20,556 $ 230,235 Total cost of sales (268,127 ) (144,485 ) (74,962 ) (487,574 ) (223,614 ) (20,527 ) (244,141 ) Gross profit (loss) $ 153,447 $ 58,669 $ — $ 212,116 $ (13,935 ) $ 29 $ (13,906 ) Cash Cost, After By-product Credits, per Silver or Gold Ounce (1) $ (0.05 ) $ 7.80 $ 2.72 $ 1,762 $ 1,762 AISC, After By-product Credits, per Silver or Gold Ounce (1) $ 5.65 $ 16.50 $ 13.06 $ 1,990 $ 1,990 2023: Sales $ 384,504 $ 116,284 $ 35,518 $ 536,306 $ 177,678 $ 6,243 $ 183,921 Total cost of sales (259,895 ) (84,185 ) (35,518 ) (379,598 ) (221,341 ) (6,339 ) (227,680 ) Gross profit (loss) $ 124,609 $ 32,099 $ — $ 156,708 $ (43,663 ) $ (96 ) $ (43,759 ) Cash Cost, After By-product Credits, per Silver or Gold Ounce (1) $ 2.53 $ 5.51 $ 3.23 $ 1,652 $ 1,652 AISC, After By-product Credits, per Silver or Gold Ounce (1) $ 7.14 $ 12.21 11.76 $ 2,048 $ 2,048 2022: Sales $ 335,062 $ 147,814 $ — $ 482,876 $ 235,136 $ 893 $ 236,029 Total cost of sales (232,718 ) (116,598 ) — (349,316 ) (248,898 ) (4,535 ) (253,433 ) Gross profit (loss) $ 102,344 $ 31,216 $ — $ 133,560 $ (13,762 ) $ (3,642 ) $ (17,404 ) Cash Cost, After By-product Credits, per Silver or Gold Ounce (1) $ 0.70 $ 5.06 $ 2.06 $ 1,478 $ 1,478 AISC, After By-product Credits, per Silver or Gold Ounce (1) $ 5.17 $ 12.86 $ 10.66 $ 1,773 $ 1,773 (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) .
Added
(2) The calculation of AISC for our consolidated silver properties includes corporate costs for general and administrative expense, sustaining capital and production, and related costs and sustaining capital expenditures for Lucky Friday excluding costs incurred during suspension of production from August 2023 until the resumption of operations on January 9, 2024. 66 (3) Other includes $20.6 million of sales and $20.5 million in total cost of sales for the year ended December 31, 2024; $6.2 million of sales and $6.3 million of total cost of sales for the year ended December 31, 2023; and $0.9 million of sales and $4.5 million of total cost of sales for the year ended December 31, 2022 related to the Company's environmental services business and Nevada.
Added
While revenue from zinc, lead and gold by-products is significant, we believe that identification of silver as the primary product of Greens Creek, Lucky Friday, and Keno Hill is appropriate because: • 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 the Greens Creek and Lucky Friday units as primary silver producers, based on the original analysis that justified putting the project into production, and the same analysis applies to the Keno Hill unit, and further we 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, Lucky Friday and Keno Hill deposits are massive sulfide deposits containing an unusually high proportion of silver; and • in most of their working areas, Greens Creek, Lucky Friday and Keno Hill utilize selective mining methods in which silver is the metal targeted for highest recovery.
Added
Accordingly, we believe the identification of gold, lead, zinc and copper as by-product credits at Greens Creek, Lucky Friday and Keno Hill is appropriate because of their lower economic value compared to silver and due to the fact that silver is the primary product we intend to produce at those locations.
Added
In addition, we have not consistently received sufficient revenue from any single by-product metal to warrant classification of such as a co-product. We periodically review our revenues to ensure that reporting of primary products and by-products is appropriate.
Added
Because for Greens Creek, Lucky Friday and Keno Hill we consider zinc, lead, gold and copper to be by-products of our silver production, the values of these metals from Greens Creek and Keno Hill only offset operating costs within our calculations of Cash Cost, After By-product Credits, per Silver Ounce and AISC, After By-product Credits, per Silver Ounce.
Added
We currently do not report Cash Cost, After By-product Credits, per Silver Ounce and AISC, After By-product Credits, per Silver Ounce for our Keno Hill operation as it is in the production ramp-up phase and has not met our definition of commercial production.
Added
We define an operation as being in commercial production upon achievement of the following criteria: • Completion of operational commissioning of each major mine and mill component; • Demonstrated ability to mine and mill consistently and without significant interruption, defined as 75% of historical production levels or mill design capacity over a period of 30 days; • Silver recoveries are at or near expected steady-state production levels; • All major capital expenditures have been completed; and • A significant portion of available funding is directed towards operating activities.
Added
Determination of when these criteria have been met requires the use of judgment, and our definition of commercial production may differ from that of other mining companies.
Added
As Keno Hill has not yet been determined to be in commercial production, it's costs and by-product credits are excluded from our consolidated Cash Cost, After By-product Credits, per Silver Ounce and AISC, After By-product Credits, per Silver Ounce because (i) by definition it has not reached the sustaining stage and (ii) including its costs and by-product credits we believe would distort consolidated Cash Cost, After By-product Credits, per Silver Ounce and AISC, After By-product Credits, per Silver Ounce of our operating silver mines that are in commercial production and operating as designed, and not facilitate a meaningful comparison of our performance versus that of our peers.
Added
We believe the identification of silver as a by-product credit is appropriate at Casa Berardi because of its lower economic value compared to gold and due to the fact that gold is the primary product we intend to produce.
Added
In addition, we do not receive sufficient revenue from silver at the Casa Berardi to warrant classification of such as a co-product.
Added
Because we consider silver to be a by-product of our gold production at Casa Berardi, the value of silver offsets operating costs within our calculations of Cash Cost, After By-product Credits, per Gold Ounce and AISC, After By-product Credits, per Gold Ounce. 67 For the year ended December 31, 2024, we reported net income applicable to common stockholders of $35.3 million compared to a net loss of $84.8 million and net loss of $37.9 million in 2023 and 2022, respectively.
Added
The following factors contributed to those differences: • Variances in gross profit (loss) at our operations as illustrated in the table above. See the Greens Creek , Lucky Friday , Keno Hill, and Casa Berardi sections below. • General and administrative costs were $45.4 million, $42.7 million and $43.4 million in 2024, 2023 and 2022 respectively.
Added
The increase in 2024 of $2.7 million reflects non-recurring costs associated with the former CEO's retirement. The decrease in 2023 of $0.7 million reflects lower incentive compensation accruals compared to 2022 partially offset by annual compensation adjustments effective July 1. • Exploration and pre-development expense was $27.3 million, $32.5 million and $46.0 million in 2024, 2023 and 2022, respectively.
Added
In 2024 exploration and pre-development expense decreased by $5.2 million as exploration activities were focused primarily at Greens Creek and Keno Hill, with additional pre-development work at the Libby Exploration project. • Provision for closed operations and environmental matters was $6.8 million in 2024 compared to $7.6 million in 2023 and $8.8 million in 2022.
Added
The decrease of $0.8 million for 2024 compared to 2023 was due to the recognition of an additional reclamation provision at Johnny M in 2023.
Added
The decrease of $1.2 million for 2023 compared to 2022 is primarily due to less reclamation activities at Johnny M in 2023 compared to 2022. • During 2024 we recorded a $14.5 million write down of property, plant and equipment which had no salvage value.
Added
Of this amount, $13.9 million related to the Lucky Friday remote vein miner machine for which (i) we no longer had a use following the success of the UCB mining method at Lucky Friday, (ii) we had been unsuccessful in locating a buyer, and (iii) the vendor advised us during the period that it would discontinue support for the program. • Ramp-up and suspension costs for the years ended December 31, 2024, 2023 and 2022 are summarized in the table below (in thousands) Year Ended December 31, 2024 2023 2022 Keno Hill $ 26,754 $ 29,793 $ 2,254 Lucky Friday 2,207 25,548 — Nevada 12,304 16,549 19,743 Casa Berardi — 2,228 — San Sebastian 2,042 2,134 2,117 Total ramp-up and suspension costs $ 43,307 $ 76,252 $ 24,114 The costs incurred at Keno Hill during all periods were to ramp it up to full production.
Added
The costs incurred at Lucky Friday in 2024 ($2.2 million) were to ramp it up to full production, while in 2023, $25.5 million related to the suspension of production following the underground fire that occurred in the #2 shaft. $2.2 million was incurred at Casa Berardi due its operations being suspended for 20 days in June, 2023 due to Quebec wildfires.
Added
The costs incurred at San Sebastian and Nevada are holding costs as all operations at these sites were suspended during these periods. • Other operating income was $45.5 million, $1.4 million and an expense of $6.3 million in 2024, 2023 and 2022, respectively.
Added
The income in 2024 is primarily related to the Lucky Friday business interruption insurance proceeds of $50 million related to the aforementioned fire.
Added
The income in 2023 compared to the expense in 2022 was primarily due to the receipt of $5.9 million in insurance proceeds in May related to an insurance coverage lawsuit. • Fair value adjustments, net resulted in a loss of $2.2 million, gain of $2.9 million, and losses of $4.7 million in 2024, 2023 and 2022, respectively.
Added
The components for each period are summarized in the following table (in thousands): Year Ended December 31, 2024 2023 2022 Loss (gain) on derivative contracts $ (5,907 ) $ 3,168 $ 844 Unrealized gain (loss) on investments in equity securities 3,703 (243 ) (5,632 ) Gain on disposition or exchange of investments — — 65 Total fair value adjustments, net $ (2,204 ) $ 2,925 $ (4,723 ) 68 • Net foreign exchange gain of $7.6 million in 2024, compared to a loss of $3.8 million and gain of $7.2 million in 2023 and 2022, respectively, on translation of our monetary assets and liabilities at Casa Berardi, Keno Hill and San Sebastian. • Interest expense of $49.8 million, $43.3 million and $42.8 million in 2024, 2023 and 2022, respectively.
Added
The interest in 2024, 2023 and 2022 was primarily related to our Senior Notes with 2024 also including interest expense of $9.3 million on amounts drawn on our revolving credit facility. • Income and mining tax provision of $30.4 million in 2024, compared to a provision of $1.2 million and benefit of $7.6 million in 2023 and 2022, respectively.
Added
Greens Creek Dollars are in thousands (except per ounce and per ton amounts) Years Ended December 31, 2024 2023 2022 Sales $ 421,574 $ 384,504 $ 335,062 Cost of sales and other direct production costs (214,677 ) (205,900 ) (183,807 ) Depreciation, depletion and amortization (53,450 ) (53,995 ) (48,911 ) Total cost of sales (268,127 ) (259,895 ) (232,718 ) Gross Profit $ 153,447 $ 124,609 $ 102,344 Tons of ore milled 895,318 914,796 881,445 Production: Silver (ounces) 8,480,877 9,731,752 9,741,935 Gold (ounces) 55,275 60,896 48,216 Lead (tons) 18,320 19,578 19,480 Zinc (tons) 51,288 51,496 52,312 Copper (tons) 1,874 1,823 1,904 Payable metal quantities sold: Silver (ounces) 7,331,502 8,493,040 8,234,010 Gold (ounces) 45,201 49,790 35,508 Lead (tons) 13,706 15,247 14,762 Zinc (tons) 36,725 36,042 34,856 Copper (tons) 50 — — Ore grades: Silver ounces per ton 11.99 13.31 13.64 Gold ounces per ton 0.09 0.09 0.08 Lead percent 2.52 2.60 2.68 Zinc percent 6.41 6.35 6.69 Copper percent 0.27 0.26 0.28 Total production cost per ton $ 216.15 $ 204.20 $ 196.73 Cash Cost, After By-product Credits, per Silver Ounce (1) $ (0.05 ) $ 2.53 $ 0.70 AISC, After By-Product Credits, per Silver Ounce (1) $ 5.65 $ 7.14 $ 5.17 Capital additions $ 47,795 $ 43,542 $ 36,898 (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) .
Added
At Greens Creek, gold, zinc and lead are considered to be by-products of our silver production, and the values of those metals therefore offset operating costs within our calculations of Cash Cost and AISC, After By-product Credits, per Silver Ounce.
Added
Gross profit increased by $28.8 million to $153.4 million in 2024 from $124.6 million in 2023, due to higher realized prices for all metals sold other than lead, partly offset by lower sales volumes for all metals, except zinc, and higher production costs which primarily consist of higher labor and contractor costs and higher equipment maintenance. See Item 1A.
Added
Risk Factors - Our profitability could be affected by inflation, including the prices of other commodities for a discussion of certain risks related to our operations profitability. 69 Gross profit increased by $22.3 million to $124.6 million in 2023 from $102.3 million in 2022, as higher realized prices for all metals sold other than zinc and higher payable metal quantities for all metals sold compared to 2022, was offset by higher production costs reflecting more tons milled, and related higher labor, maintenance and consumables costs.
Added
See Item 1A. Risk Factors - Our profitability could be affected by inflation, including the prices of other commodities for a discussion of certain risks related to our operations profitability. Capital additions increased by $4.3 million in 2024 to $47.8 million compared to 2023.
Added
Significant components of the 2024 capital additions were $15.1 million on mobile equipment, a $5.3 million increase over 2023, $16.9 million on mine and primary ore access development, $6.5 million of definition drilling, and $3.8 million towards a concentrator .
Added
The chart below illustrates the factors contributing to the variances in Cash Cost, After By-product Credits, Per Silver Ounce for 2024 compared to 2023 and 2022: The following table summarizes the components of Cash Cost, After By-product Credits, per Silver Ounce: Years Ended December 31, 2024 2023 2022 Cash Cost, Before By-product Credits, per Silver Ounce $ 27.19 $ 24.85 $ 23.20 By-product credits per silver ounce (27.24 ) (22.32 ) (22.50 ) Cash Cost, After By-product Credits, per Silver Ounce $ (0.05 ) $ 2.53 $ 0.70 The following table summarizes the components of AISC, After By-product Credits, per Silver Ounce: Years Ended December 31, 2024 2023 2022 AISC, Before By-product Credits, per Silver Ounce $ 32.89 $ 29.46 $ 27.67 By-product credits per silver ounce (27.24 ) (22.32 ) (22.50 ) AISC, After By-product Credits, per Silver Ounce $ 5.65 $ 7.14 $ 5.17 The decrease in Cash Cost, After By-product Credits, per Silver Ounce in 2024 compared to 2023 was primarily due to higher by-product credits, primarily due to higher realized gold prices, partly offset by lower silver production due to 7 days of unplanned maintenance on the Semi-Autogenous Grinding ("SAG") mill variable frequency drive and lower grade material mined and higher production costs primarily related to higher labor and contractor costs driven by inflation and higher equipment maintenance costs . 70 AISC, After By-product Credits, decreased due to lower cash costs per ounce, partly offset by higher sustaining capital expenditures in 2024.
Added
The increase in Cash Cost and AISC, each After By-product Credits, per Silver Ounce in 2023 compared to 2022 was primarily due to higher production costs related to labor, maintenance and consumables and lower by-product credits.
Added
Lucky Friday Dollars are in thousands (except per ounce and per ton amounts) Years Ended December 31, 2024 2023 2022 Sales $ 203,154 $ 116,284 $ 147,814 Cost of sales and other direct production costs (103,436 ) (59,860 ) (82,894 ) Depreciation, depletion and amortization (41,049 ) (24,325 ) (33,704 ) Total cost of sales (144,485 ) (84,185 ) (116,598 ) Gross profit $ 58,669 $ 32,099 $ 31,216 Tons of ore milled 406,541 231,129 356,907 Production: Silver (ounces) 4,890,949 3,086,119 4,412,764 Lead (tons) 31,265 19,543 29,233 Zinc (tons) 13,513 7,944 12,436 Payable metal quantities sold: Silver (ounces) 4,506,632 3,020,116 4,039,435 Lead (tons) 28,577 19,079 26,660 Zinc (tons) 9,735 6,160 8,802 Ore grades: Silver ounces per ton 12.70 14.00 13.00 Lead percent 8.20 8.90 8.70 Zinc percent 3.90 4.10 3.90 Total production cost per ton $ 245.19 $ 218.45 $ 223.55 Cash Cost, After By-product Credits, per Silver Ounce (1) $ 7.80 $ 5.51 $ 5.06 AISC, After By-product Credits, per Silver Ounce (1) $ 16.50 $ 12.21 $ 12.86 Capital additions $ 49,592 $ 65,337 $ 50,992 (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) .
Added
At Lucky Friday, lead and zinc are considered to be by-products of our silver production, and the values of those metals therefore offset operating costs within our calculations of Cash Cost and AISC, each After By-product Credits, per Silver Ounce.
Added
During August 2023, the production at the mine was suspended due to a fire that occurred while repairing an unused station in the #2 ventilation shaft, which is also the secondary egress (required by MSHA regulations). By early September, the fire had been extinguished, normal ventilation was reestablished and the workforce recalled.
Added
Following evaluation of alternatives, it was determined that in order to safely bring the mine back into production in the most rapid and cost effective way, a new secondary egress needed to be developed to bypass the damaged portion of the #2 shaft.
Added
The new egress involved extending an existing ramp 1,600 feet, installing a 290-foot-long manway raise, and developing an 850 foot ventilation raise. This work resulted in operations being suspended for the remainder of 2023, with the mine restarting production on January 9, 2024, and ramping up to full production during the first quarter.
Added
The Company has property and business interruption insurance coverage with an underground sub-limit of $50.0 million, and received the full coverage amount of $50.0 million in 2024. The discussion of Lucky Friday's results below for the years ended December 31, 2024 and 2023 has been impacted by this prior suspension of operations.
Added
Gross profit in 2024 of $58.7 million, was $26.6 million higher than 2023, primarily due to higher realized prices for silver, and higher sales volumes for all metals produced due to the suspension of mining operations mentioned above.
Added
For the year ended December 31, 2024, $2.2 million of site specific suspension costs were included within Ramp-up and suspension costs on our consolidated statements of operations and comprehensive income (loss), compared to $25.5 million in 2023. 71 Gross profit in 2023 of $32.1 million, was $0.9 million higher than 2022, due to higher grades, higher realized silver and lead prices and higher tons milled per day prior to the shutdown in August 2023 compared to 2022.
Added
As mentioned above, in 2023, $25.5 million of site specific suspension costs were included within Ramp-up and suspension costs. Total capital additions decreased by $15.7 million in 2024 to $49.6 million compared to 2023 as the prior year contained investments made to support sustained higher throughput and costs incurred to build the secondary egress following the August 2023 fire.
Added
Capital expenditures decreased as the prior year included expenditures for the installation of a service hoist, coarse ore bunker and shaft and related infrastructure. The chart below illustrates the factors contributing to the variances in Cash Cost, After By-product Credits, Per Silver Ounce for 2024, 2023 and 2022.
Added
The following table summarizes the components of Cash Cost, After By-product Credits, per Silver Ounce: Years Ended December 31, 2024 2023 2022 Cash Cost, Before By-product Credits, per Silver Ounce $ 24.48 $ 21.45 23.23 By-product credits per silver ounce (16.68 ) (15.94 ) (18.17 ) Cash Cost, After By-product Credits, per Silver Ounce $ 7.80 $ 5.51 $ 5.06 The following table summarizes the components of AISC, After By-product Credits, per Silver Ounce: Years Ended December 31, 2024 2023 2022 AISC, Before By-product Credits, per Silver Ounce $ 33.18 $ 28.15 $ 31.03 By-product credits per silver ounce (16.68 ) (15.94 ) (18.17 ) AISC, After By-product Credits, per Silver Ounce $ 16.50 $ 12.21 $ 12.86 The increase in Cash Cost and AISC, each After By-product Credits, per Silver Ounce in 2024 compared to 2023 was due to higher production costs, and higher sustaining capital for AISC, partly offset by higher silver production and higher by-product credits.
Added
The increase in Cash Cost, After By-product Credits, per Silver Ounce in 2023 compared to 2022 was due to lower by-product credits 72 in 2023. The decrease in AISC, After By-product Credits, per Silver Ounce in 2023 compared to 2022 was due lower sustaining capital expenditures.

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Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

0 edited+229 added−68 removed0 unchanged
Removed
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Results of Operations - Keno Hill for information on its financial performance. 50 The total Hecla Keno Hill mineral claims as of December 31, 2023, covers an area of 238.12 km2 and comprises 717 quartz mining leases, 867 quartz mining claims and two Crown Grants.
Added
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Results of Operations – Keno Hill. We may be subject to a number of unanticipated risks related to inadequate infrastructure. Mining, processing, development, exploration and other activities depend on adequate infrastructure.
Removed
Below is a map illustrating the location and access to Keno Hill: The Keno Hill property is a polymetallic silver-lead-zinc vein district with characteristics similar to other well-known mining districts in the world. Examples of this type of mineralization include the Kokanee Range (Slocan), British Columbia; Coeur d’Alene, Idaho; Freiberg and the Harz Mountains, Germany; and Príbram, Czech Republic.
Added
Reliable roads, bridges, ports, power sources, internet access and water supply are important to our operations, and their availability and condition affect capital and operating costs. Unusual, infrequent or extreme weather phenomena, sabotage, amount or complexity of required investment, or other interference in the maintenance or provision of such infrastructure, or government intervention, could adversely affect our mining operations.
Removed
The local geology is dominated by the Mississippian Keno Hill Quartzite comprising the Basal Quartzite Member and conformably overlying Sourdough Hill Member. Silver predominantly occurs in argentiferous galena and argentiferous tetrahedrite (freibergite). In some assemblages, silver is also found as native silver, in polybasite, stephanite, and pyrargyrite. Lead occurs in galena and zinc in sphalerite.
Added
For example, Yukon Energy, the provider of electricity to Keno Hill, recently experienced a turbine failure at its hydroelectric plant in Whitehorse. That failure, combined with cold temperatures in the Yukon, has caused Yukon Energy to reduce power to Keno Hill, which does not have sufficient backup generation capacity to fully power the mine and the mill.
Removed
Other sulfides include pyrite, pyrrhotite, arsenopyrite, and chalcopyrite. In general, common gangue minerals include siderite and, to a lesser extent, quartz, and calcite. Keno Hill ore is mined with a mechanized cut and fill method ("MCF"). Where the ore width is wider than can be safely extracted in one cut, the ore will be mined in adjacent drifts.
Added
As a result, on several occasions in late 2024 and early 2025, Keno Hill has had insufficient power to run the mine and the mill.
Removed
Lenses are predominantly mined in a bottom-up sequence and filled with cemented rock fill ("CRF") with a 3%-8% binder content. CRF is used to introduce temporary sill levels or to fill initial drifts when multiple adjacent drifts are required.
Added
Although such power disruptions have not yet had a material impact on Keno Hill’s operations, we expect that power interruptions will continue throughout the cold weather months of 2025 until the turbine is repaired by Yukon Energy (currently expected in summer 2025), and such interruptions could have a material adverse impact on the financial condition of and results of operations at Keno Hill.
Removed
Temporary sill levels form a sequence interrupting pillar which allows for multiple mining fronts to be active on one lens at a time. The remainder of the lifts will be backfilled with unconsolidated rock fill ("URF"). This mining method was chosen due to the narrow steeply dipping nature of the mineral bodies and to maximize safety and productivity.
Added
We face inherent risks in acquisitions of other mining companies or properties that may adversely impact our growth strategy. We actively evaluate opportunities to expand our mineral reserves and resources by acquiring other mining companies or properties. Although we are pursuing opportunities that we feel are in the best interest of our stockholders, these pursuits are costly and distracting.
Removed
The various deposits require the use of mining methods that can adequately support the vein and that are flexible and selective while minimizing the direct mining costs. In the MCF method, an attack ramp is developed from the main ramp at a gradient of -15%.
Added
There is a limited supply of desirable mineral properties available in the United States and in foreign countries where we would consider conducting exploration and/or production activities. For those that exist, we face strong competition from other mining companies, many of which have greater financial resources than we do.
Removed
Upon reaching the orebody, an intersection is developed, and a lift is developed in both directions along strike, following the geological contact of the orebody. At the end of the lens, the void is backfilled using a Load Haul Dump ("LHD") machine. The LHD utilizes a bulldozer-like plate to push waste tight to the back of the drift.
Added
Therefore, we may be unable to acquire attractive companies or mining properties on terms that we consider acceptable. Furthermore, there are inherent risks in any acquisition we may undertake which could adversely affect our current business and financial condition and our growth.
Removed
Once the level has been completely backfilled, the next lift above the previously mined lift is accessed by slashing down the back of the attack ramp and working off the muck pile/horizon. MCF drift sizes are on average 3.5 meters high x 3.5 meters wide.
Added
For example, we may not realize the expected value of the companies or properties that are acquired due to declines in metals prices, lower than expected quality of orebodies, inability to achieve the expected or minimum level of operating performance, failure to obtain permits, labor problems, changes in regulatory environment, failure to achieve anticipated synergies, an inability to obtain financing, and other factors described in these risk factors.
Removed
For areas wider than development equipment, a second parallel drift will be mined beside the backfilled drift to fully extract the material prior to accessing the lift above. In this situation, the first drift will be completely backfilled with cemented rock fill to ensure a stable wall to allow adjacent mining activity.
Added
Acquisitions of other mining companies or properties may also expose us to new legal, geographic, political, operating, and geological risks. See the risk factor below, “ We may not realize all of the anticipated benefits from our acquisitions, including our 2022 acquisition of Alexco. ” We may be unable to successfully integrate the operations of the properties we acquire.
Removed
The lifts are generally sequenced from the bottom-up within each panel. The Keno Hill mill is based on a conventional sequential flotation process producing silver and zinc concentrates. The silver concentrates are high in lead which typically accounts for approximately 90% to 95% of the mill feed silver values since given that is strongly associated with lead minerals.
Added
Integration of the businesses or the properties we acquire with our existing business, including the Keno Hill project acquired as part of the Alexco acquisition in September 2022, is a complex, time-consuming and costly process.
Removed
Overall, silver represents 70% to 80% of the value of the ores in the District. For more information, see Exhibit 96.4, the Technical Report Summary on the Keno Hill Operations, Yukon, Canada, prepared for the Company by Mining Plus Canada Ltd. with an effective date of December 31, 2023.
Added
Failure to successfully integrate the acquired properties and operations in a timely manner may have a material adverse effect on our business, financial condition, results of operations and cash flows.
Removed
At December 31, 2023, there were 255 employees at Keno Hill. 51 As of December 31, 2023, we have recorded a $3.4 million asset retirement obligation for reclamation and closure costs. The net book value of the Keno Hill property and its associated plant, equipment and mineral interests was approximately $335.7 million as of December 31, 2023.
Added
The difficulties of combining the acquired operations with our existing business include, among other things: • operating a larger organization; • operating in multiple legal jurisdictions; 20 • coordinating geographically and linguistically disparate organizations, systems and facilities; • adapting to additional political, regulatory, legal and social requirements; • integrating corporate, technological and administrative functions; and • diverting management’s attention from other business concerns.
Removed
The active infrastructure in place at Keno Hill ranges from the 1980s to 2023. The current mine plan at Keno Hill utilizes estimates of reserves and resources for approximately 11 years of production, through 2034.
Added
The process of integrating operations could cause an interruption of, or a slowdown in, the activities of our business. Members of our senior management may be required to devote considerable amounts of time to this integration process, which will decrease the time they will have to manage other parts of our business.
Removed
Information with respect to the Keno Hill’s production and proven and probable in -situ mineral reserves for the past two years is set forth in the table below.
Added
If our senior management is not able to effectively manage the integration process, or if any business activities are interrupted as a result of the integration process, our business could suffer.
Removed
Information with respect to Keno Hill’s average Cash Cost, After By-product Credits, Per Silver Ounce, AISC, After By-product Credits, Per Silver Ounce were not reported as the mine has not reached commercial production.
Added
See the risk factor below, “ We may not realize all of the anticipated benefits from our acquisitions, including our 2022 acquisition of Alexco. ” Issues we have faced at certain segments could require us to write-down the carrying value of associated long-lived assets. We could face similar issues at our other operations.
Removed
At the time the mine reaches commercial production, these metrics will be reported, as until this time costs are allocated to total cost of sales to the extent there are sales.
Added
Such write-downs may adversely affect our results of operations and financial condition. We review our long-lived assets for recoverability pursuant to the Financial Accounting Standard Board’s Accounting Standards Codification Section 360. Under that standard, we review the recoverability of our long-lived assets, such as our mining properties, upon a triggering event.
Removed
Years Ended December 31, Production 2023 2022 2021 Ore milled (tons) 56,331 — — Silver (ounces) 1,502,577 — — Lead (tons) 1,225 — — Zinc (tons) 1,139 — — Proven Mineral Reserves (2,3,4) Total tons — — — Silver (ounces per ton) — — — Gold (ounces per ton) Lead (percent) — — — Zinc (percent) — — — Contained silver (ounces) — — — Contained gold (ounces) — — — Contained lead (tons) — — — Contained zinc (tons) — — — Probable Mineral Reserves (2,3,4) Total tons 2,069,400 2,196,900 — Silver (ounces per ton) 26.6 22.5 — Gold (ounces per ton) 0.01 0.01 — Lead (percent) 2.8 2.4 — Zinc (percent) 2.5 2.2 — Contained silver (ounces) 55,068,000 49,472,600 — Contained gold (ounces) 13,400 13,000 — Contained lead (tons) 58,170 52,530 — Contained zinc (tons) 52,380 49,310 — Total Proven and Probable Mineral Reserves (2,3,4) Total tons 2,069,400 2,196,900 — Silver (ounces per ton) 26.6 22.5 — Gold (ounces per ton) 0.01 0.01 — Lead (percent) 2.8 2.4 — Zinc (percent) 2.5 2.2 — Contained silver (ounces) 55,068,000 49,472,600 — Contained gold (ounces) 13,400 13,000 — Contained lead (tons) 58,170 52,530 — Contained zinc (tons) 52,380 49,310 — (1) Proven and probable mineral reserves are calculated and reviewed in-house and are subject to periodic audit by others, although audits are not performed on an annual basis.
Added
Such review involves comparing an asset’s carrying value to its fair value. When the carrying value of the asset exceeds its fair value (which is based on estimating the future undiscounted cash flows expected to result from the use and eventual disposition of the asset or a market value approach), an impairment must be recognized.
Removed
Cutoff grade assumptions vary by ore body and are developed based on reserve metals price assumptions, anticipated mill recoveries and smelter payables, and cash operating costs. Due to multiple ore metals, and complex combinations of ore types, metal ratios and metallurgical performances at Keno Hill, the cutoff grade is expressed in terms of NSR, rather than metal grade.
Added
We conduct a review of the financial performance of our mines in connection with the preparation of our financial statements for each reporting period and determine whether any triggering events are indicated. We identified a triggering event at Casa Berardi due to the operation's gross loss for the year ended December 31, 2024.
Removed
The reserve NSR cut-off values for Keno Hill are $244.24/ton The cut-off grade calculations include costs associated with mining, processing, surface 52 operations, environmental, general administrative, and sustaining capital.
Added
Although we concluded the carrying value assessment indicated no impairment at the time the analysis was undertaken, each analysis was, and any future analysis will be, based on estimates, judgments and assumptions which may turn out to be incorrect or inaccurate.
Removed
Our estimates of proven and probable reserves are based on the following metals prices: December 31, 2023 Silver (per ounce) $ 17.00 Lead (per pound) $ 0.90 Zinc (per pound) $ 1.15 (2) Reserves are in-situ materials that incorporate estimates of the amount of waste that must be mined along with the ore and expected mining recovery.
Added
Though production remains suspended at our Nevada assets, we did not identify a triggering event for our Nevada long-lived assets in 2024, as our budgeted exploration program for 2025 has significantly increased compared to the level of exploration expenditures incurred in 2024.
Removed
The 2023 reserve model assumes average total mill recoveries of 96% for silver, 93% for lead and 72% for zinc.
Added
The estimates, judgments and assumptions we use in any fair value/impairment assessment of our long-lived assets relate to factors impacting the future cash flows estimated at any of our operations, including, but not limited to: (i) metals to be extracted and recovered from proven and probable mineral reserves and, to some extent, identified mineralization beyond proven and probable reserves, (ii) future operating and capital costs, and (iii) future metals prices.
Removed
(3) The change in change in silver reserves in 2023 from 2022 was due to inclusion of definition drilling information and additional reserve optimization and resource conversion based on a new geological/mineral zone interpretation, partially offset by depletion of the deposit through production. 53 Information on in-situ mineral resources excluding mineral reserves for Keno Hill for the past two years is set forth in the following table.
Added
These estimates, judgments and assumptions are made in good faith and using management's best judgments; however, there can be no assurance that any of them will prove to be accurate.
Removed
Years Ended December 31, 2023 2022 Measured Resources (1,2,3) Total tons — — Silver (ounces per ton) — — Gold (ounces per ton) Lead (percent) — — Zinc (percent) — — Silver (ounces) — — Gold (ounces) Lead (tons) — — Zinc (tons) — — Indicated Resources (1,2,3) Total tons 4,504,200 4,061,200 Silver (ounces per ton) 7.5 8.0 Gold (ounces per ton) 0.01 0.01 Lead (percent) 0.9 1.0 Zinc (percent) 3.5 4.0 Silver (ounces) 33,926,400 32,287,500 Gold (ounces) 26,200 28,500 Lead (tons) 41,120 39,540 Zinc (tons) 157,350 163,130 Measured and Indicated Resources (1,2,3) Total tons 4,504,200 4,061,200 Silver (ounces per ton) 7.5 8.0 Gold (ounces per ton) 0.01 0.01 Lead (percent) 0.9 1.0 Zinc (percent) 3.5 4.0 Silver (ounces) 33,926,400 32,287,500 Gold (ounces) 26,200 28,500 Lead (tons) 41,120 39,540 Zinc (tons) 157,350 163,130 Inferred Resources (1,2,3) Total tons 2,835,900 2,440,600 Silver (ounces per ton) 11.2 10.4 Gold (ounces per ton) 0.003 0.003 Lead (percent) 1.1 0.9 Zinc (percent) 1.8 2.1 Silver (ounces) 31,790,500 25,477,800 Gold (ounces) 8,600 7,900 Lead (tons) 32,040 22,380 Zinc (tons) 51,870 51,000 (1) Mineral resources are based on $21.00/oz for silver, $1.15/lb for lead, $1.35/lb for zinc and are reported in-situ and exclusive of mineral reserves. 54 (2) The resource NSR cut-off values for Keno Hill are $129.10/ton ; metallurgical recoveries (actual 2023): 95% for silver, 95% for lead and 88% for zinc.
Added
Evaluation of the possibility of a future impairment loss, as well as the calculation of the amount of any impairment loss, involve significant estimates, judgment and assumptions, and no assurance can be given as to whether or not we will recognize an impairment loss in the future, or if the amount of loss would be within any estimated range we may disclose.
Removed
The cut-off grade calculations include costs associated with mining and processing. (3) Measured and indicated resources for silver increased 5% and inferred silver resources increased 25% from 2022 given additional definition drilling and updated geology/mineral zone interpretation. C asa Berardi We have wholly owned and operated Casa Berardi since June 2013.
Added
As a result, in future periods we could face another triggering event which could lead to an impairment charge, and any such impairment charge could be material. We may not realize all of the anticipated benefits from our acquisitions, including our 2022 acquisition of Alexco.
Removed
Casa Berardi is located 95 kilometers north of La Sarre in the Abitibi Region of northwestern Quebec, Canada at 49°34'0.72”N Latitude, 79°15'56.05”W Longitude (WGS84). The property borders Ontario to the west and covers parts of Casa Berardi, Dieppe, Raymond, D'Estrees, and Puiseaux townships. We report Casa Berardi as a separate segment in our consolidated financial statements.
Added
We may not realize all (or any) of the anticipated benefits from any acquisition, such as increased earnings, cost savings and revenue enhancements, for various reasons, including difficulties integrating operations and personnel, higher than expected acquisition and operating costs or other difficulties, unknown liabilities which may be significant, inaccurate reserve estimates, unrealized exploration targets, ore grades or mill recoveries that are lower than required for portions of the orebodies to be economic, and fluctuations in market prices.
Removed
See Note 4 of Notes to Consolidated Financial Statements and Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Results of Operations - Casa Berardi for information on its financial performance.
Added
At Nevada, mine production at Fire Creek continued through the first half of 2021, and was then suspended as we continue studies of hydrology, mining and milling. Revenues exceeded total capital and production costs in 2020 and 2021.
Removed
The Casa Berardi Property is in the northern part of the Abitibi Sub province, a subdivision of the Superior Province, the Archean core of the Canadian Shield. The regional geology is characterized by a mixed assemblage of mafic volcanic rocks, flysch-type sedimentary rocks, iron formation, and graphitic mudstone that are limited by a large granodioritic to granitic batholith.
Added
However, we anticipate incurring care-and-maintenance costs in the future unless and until we have enough exploration success and development to resume mining operations. In September 2022, we completed the acquisition of Alexco and gained ownership of the Keno Hill project in the Yukon Territory, Canada.
Removed
Structurally, the property is enclosed in the Casa Berardi Tectonic Zone, a 15 km wide corridor that can be traced over 200 km. Mineralized zones are closely associated with the Casa Berardi Fault and are found on both sides of the fault and are currently restricted to a 500 m wide corridor.
Added
Although we produced silver at that mine in 2024, permitting and other delays and the lack of energy provided by Yukon Energy have prevented us from reaching anticipated production levels, which we estimate as 130,000 ounces during 2024. Further, the mine has required capital expenditures higher than we anticipated.
Removed
Gold mineralization is primarily located in quartz veining in the form of veins of 1 m to multi-meter widths, small-scale veins, or veinlet networks/stockworks. Veins contain only minor sulfides (1% to 3%); sulfides include arsenopyrite, pyrite, and traces of sphalerite, chalcopyrite, pyrrhotite, tetrahedrite, galena, and gold.
Added
As a result of the foregoing factors and their economic impacts, it is possible that we may have to suspend production and other operations at Keno Hill and place Keno Hill on care and maintenance until such time as conditions improve sufficiently to allow us to approach or reach profitability at the site.
Removed
Arsenopyrite is the main gold-bearing sulfide present in all veins of the deposit The mine and mill complex are permitted to process 1,600,000 dry metric tonnes (approximately 1,764,000 tons) of ore per year (4,900 tons per day). The mining operations consist of underground and open pit mines.
Added
See the risk 21 factors above, “ An extended decline in metals prices, an increase in operating or capital costs or treatment charges, mine accidents or closures, increasing regulatory obligations, or our inability to convert resources or exploration targets to reserves may cause us to record write-downs, which could negatively impact our results of operations, ” “Certain of our mines and exploration properties are located on land that is or may become subject to traditional territory, title claims and/or claims of cultural significance, and such claims and the attendant obligations of the federal government to those tribal communities and stakeholders may affect our current and future operations,” "We may be subject to a number of unanticipated risks related to inadequate infrastructure" and “ Issues we have faced at certain segments could require us to write-down the associated long-lived assets.
Removed
The surface infrastructures include a cyanidation processing mill (carbon-in-leach), tailings impoundment areas, and other support facilities and infrastructure.
Added
We could face similar issues at our other operations. Such write-downs may adversely affect our results of operations and financial condition. ” The properties we may acquire may not produce as expected, and we may be unable to determine reserve potential, identify liabilities associated with the acquired properties or obtain protection from sellers against such liabilities.
Removed
The map below illustrates the location and access to Casa Berardi: Current reserves at the Casa Berardi mine comprise eight zones at the West Mine, spread over a moderate horizontal distance from each other and located at different mine elevations, plus open pit and underground areas at the East Mine. 55 The ore at Casa Berardi is extracted using a combination of underground and open pit mining methods.
Added
The properties we acquire in any acquisition, including Keno Hill, may not produce as expected, may be in an unexpected condition and we may be subject to increased costs and liabilities, including environmental liabilities.
Removed
The mill utilizes a combination of gravity recovery for coarse gold and cyanidation for fine gold. The ore is crushed and ground to produce a slurry suitable for the subsequent recovery processes. Crushing and grinding is accomplished by a jaw crusher followed by a SAG mill and ball mill.
Added
Although we review properties prior to acquisition in a manner consistent with industry practices, such reviews are not capable of identifying all existing or potential adverse conditions. Generally, it is not feasible to review in depth every individual property involved in each acquisition.
Removed
Coarse gold reports to the gravity circuit consisting of Knelson concentrators followed by high intensity leaching and electrowinning. Fine gold reports to the cyanide leach train. Due to the presence of naturally occurring organic carbon in the ore, the Carbon-In-Leach (“CIL”) approach is used in a cyanidation circuit.
Added
Even a detailed review of records and properties may not necessarily reveal existing or potential problems or permit a buyer to become sufficiently familiar with the properties to fully assess their condition, any deficiencies, and development potential.
Removed
Gold is adsorbed onto carbon in the leach train and later desorbed for electrowinning. Sludge from the electrowinning cells is melted in a furnace to produce doré, the final product produced at Casa Berardi. In 2023, the mill processed 1,446,488 tons, for an average of 3,963 tons per day.
Added
See the risk factors above, “ We may not realize all of the anticipated benefits from our acquisitions, including our 2022 acquisition of Alexco, ” “ Certain of our mines and exploration properties are located on land that is or may become subject to traditional territory, title claims and/or claims of cultural significance, and such claims and the attendant obligations of the federal government to those tribal communities and stakeholders may affect our current and future operations ” and “ An extended decline in metals prices, an increase in operating or capital costs or treatment charges, mine accidents or closures, increasing regulatory obligations, or our inability to convert resources or exploration targets to reserves may cause us to record write-downs, which could negatively impact our results of operations .” We face risks relating to transporting our products from our mines, as well as transporting employees and materials at our Greens Creek, Casa Berardi and Keno Hill sites.
Removed
For more information, see Exhibit 96.3, the Technical Report Summary on the Casa Berardi Mine, Northwestern Québec, Canada, prepared for the Company by the QP, RESPEC with an effective date of December 31, 2023. The employees at Casa Berardi are employees of Hecla Quebec Inc., our wholly-owned subsidiary, and are not represented by a bargaining agent.
Added
Certain of the products we ship to our customers are subject to regulatory requirements regarding shipping, packaging, and handling of products that may be considered dangerous to human health or the environment.
Removed
There were 497 e mployees at Casa Berardi at December 31, 2023. We also utilize third-party contractors, which use their employees and equipment, for some of the mining activities at Casa Berardi.
Added
Although we believe we are currently in compliance with all material regulations applicable to shipping, packaging, and handling our products, the chemical properties of our products or existing regulations could change and cause us to fall out of compliance or force us to incur substantial additional expenditures to maintain compliance with applicable regulations.
Removed
The current mine plan at Casa Berardi utilizes estimates of reserves and resources for approximately 14 years of production to 2037, and includes anticipated production from both the underground and open pit mine areas. The net book value of the Casa Berardi property and its associated plant, equipment and mineral interests was approximately $624.5 million as of December 31, 2023.
Added
Further, we do not ship our own products but instead rely on third party carriers to ship our products to our customers.
Removed
As of December 31, 2023, we have recorded a $11.2 million asset retirement obligation for reclamation and closure costs. We maintain a surety bond as financial guarantee for future reclamation and closure work.
Added
To the extent that any of our carriers are unable or unwilling to ship our products in accordance with applicable regulations, including because of difficulty in obtaining, or increased cost of, insurance, or are involved in accidents during transit, we could be forced to find alternative shipping arrangements, assuming such alternatives would be available, and we could face liability as a result of any accident.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

36 edited+14 added−18 removed45 unchanged
Biggest changeAs of December 31, 2023, we have a total of 576 forward contracts outstanding to buy a total of CAD $422.1 million having a notional amount of USD$332.3 million . The CAD contracts that are related to forecasted cash operating costs at Casa Berardi and Keno Hill from 2024-2026 and have CAD-to-USD exchange rates ranging between 1.27670 and 1.36920.
Biggest changeAs of December 31, 2024, we have a total of 378 forward contracts outstanding to buy a total of CAD $279.3 million having a notional amount of USD$206.6 million with CAD-to-USD exchange rates ranging between 1.2816 and 1.4223, with the following exposures from 2025-2026: • Forecasted cash operating costs at Casa Berardi and Keno Hill of CAD $198.6 million at an average CAD-to-USD exchange rate of 1.34. • Forecasted capital expenditures at Casa Berardi of CAD$15.8 million at an average CAD-to-USD exchange rate of 1.345. • Forecasted capital expenditures at Keno Hill of CAD$47.7 million at an average CAD-to-USD exchange rate of 1.373. • Forecasted exploration expenditures at Casa Berardi and Keno Hill of CAD$5.6 million at an average CAD-to-USD exchange rate of 1.4025. • Forecasted Corporate costs of CAD$11.7 million at an average CAD-to-USD exchange rate of 1.368.
The separate return method can result in significant eliminations of deferred tax assets and liabilities and related income tax provisions and benefits. 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.
The separate return method can result in significant eliminations of deferred tax assets and liabilities 93 and related income tax provisions and benefits. 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 December 31, 2023, the Guarantors consist of the following Hecla 100%-owned subsidiaries: Hecla Limited; Silver Hunter Mining Company; Rio Grande Silver, Inc.; Hecla MC Subsidiary, LLC; Hecla Silver Valley, Inc.; Burke Trading, Inc.; Hecla Montana, Inc.; Revett Silver Company; RC Resources, Inc.; Troy Mine Inc.; Revett Exploration, Inc.; Revett Holdings, Inc.; Mines Management, Inc.; Newhi, Inc.; Montanore Minerals Corp.; Hecla Alaska LLC; Hecla Greens Creek Mining Company; Hecla Admiralty Company; Hecla Juneau Mining Company; Klondex Holdings Inc.; Klondex Gold & Silver Mining Co.; Klondex Midas Holdings Limited; Klondex Aurora Mine Inc.; Klondex Hollister Mine Inc.; Hecla Quebec, Inc.; and Alexco Resource Corp.
As of December 31, 2024, the Guarantors consist of the following Hecla 100%-owned subsidiaries: Hecla Limited; Silver Hunter Mining Company; Rio Grande Silver, Inc.; Hecla MC Subsidiary, LLC; Hecla Silver Valley, Inc.; Burke Trading, Inc.; Hecla Montana, Inc.; Revett Silver Company; RC Resources, Inc.; Troy Mine Inc.; Revett Exploration, Inc.; Revett Holdings, Inc.; Mines Management, Inc.; Newhi, Inc.; Montanore Minerals Corp.; Hecla Alaska LLC; Hecla Greens Creek Mining Company; Hecla Admiralty Company; Hecla Juneau Mining Company; Klondex Holdings Inc.; Klondex Gold & Silver Mining Co.; Klondex Midas Holdings Limited; Klondex Aurora Mine Inc.; Klondex Hollister Mine Inc.; Hecla Quebec, Inc.; and Alexco Resource Corp.
Quantitative and Qualitative Disclosures about Market Risk The following discussion about our exposure to market risks and risk-management activities includes forward-looking statements that involve risk and uncertainties, as well as summarizes the financial instruments held by us at December 31, 2023 which are sensitive to changes in commodity prices, foreign exchange rates and interest rates and are not held for trading purposes.
Quantitative and Qualitative Disclosures about Market Risk The following discussion about our exposure to market risks and risk-management activities includes forward-looking statements that involve risk and uncertainties, as well as summarizes the financial instruments held by us at December 31, 2024 which are sensitive to changes in commodity prices, foreign exchange rates and interest rates and are not held for trading purposes.
Our reserves and resources are affected largely by our assessment of future metals prices, as well as by engineering and geological estimates of ore grade, accessibility, future recoveries, capital expenditures and production costs. See Item 2. – Properties above for the metals price assumptions used in our estimates of reserves and resources as of December 31, 2023, 2022 and 2021.
Our reserves and resources are affected largely by our assessment of future metals prices, as well as by engineering and geological estimates of ore grade, accessibility, future recoveries, capital expenditures and production costs. See Item 2. – Properties above for the metals price assumptions used in our estimates of reserves and resources as of December 31, 2024, 2023 and 2022.
Annual reserve and resource estimates are also used to determine conversions of resources and exploration targets beyond the known reserve resulting from business combinations to depreciable reserves, in periods subsequent to the business combinations (see Business Combinations below).
Annual reserve and resource estimates are also used to determine conversions of resources and exploration targets beyond the known reserve resulting from business combinations to depreciable reserves, in periods subsequent to the business combinations.
Each contract related to operating costs is designated as a cash flow hedge, while contracts related to development and interest costs have not been designated as hedges as of December 31, 2023.
Each contract related to operating costs is designated as a cash flow hedge, while contracts related to development and interest costs have not been designated as hedges as of December 31, 2024.
Unrealized gains and losses will be transferred from accumulated other comprehensive loss to current earnings as the underlying operating expenses are recognized. We estimate approximately $0.2 million in net unrealized gains included in accumulated other comprehensive income (loss) as of December 31, 2023 would be reclassified to current earnings in the next twelve months.
Unrealized gains and losses will be transferred from accumulated other comprehensive loss to current earnings as the underlying operating expenses are recognized. We estimate approximately $6.0 million in net unrealized losses included in accumulated other comprehensive income (loss) as of December 31, 2024 would be reclassified to current earnings in the next twelve months.
At December 31, 2023 and 2022, we recorded the following balances for the fair value of forward contracts held at that time (in millions): December 31, 2023 December 31, 2022 Balance sheet line item: Contracts in an asset position Contracts in a liability position Net asset (liability) Contracts in an asset position Contracts in a liability position Net asset (liability) Other current assets $ 3.1 $ — $ 3.1 $ 1.2 $ — $ 1.2 Other non-current assets $ 1.5 $ — $ 1.5 $ 0.1 $ — $ 0.1 Current derivatives liability $ — $ (0.1 ) $ (0.1 ) $ — $ (12.1 ) $ (12.1 ) Non-current derivatives liability $ — $ — $ — $ — $ (2.5 ) $ (2.5 ) Net realized and unrealized gains of approximately $14.6 million related to the effective portion of the contracts designated as hedges were included in accumulated other comprehensive loss as of December 31, 2023.
At December 31, 2024 and 2023, we recorded the following balances for the fair value of forward contracts held at that time (in millions): December 31, 2024 December 31, 2023 Balance sheet line item: Contracts in an asset position Contracts in a liability position Net asset (liability) Contracts in an asset position Contracts in a liability position Net asset (liability) Other current assets $ 11.5 $ — $ 11.5 $ 3.1 $ — $ 3.1 Other non-current assets $ 6.6 $ — $ 6.6 $ 1.5 $ — $ 1.5 Current derivatives liability $ — $ — $ — $ — $ (0.1 ) $ (0.1 ) Net realized and unrealized gains of approximately $13.4 million related to the effective portion of the contracts designated as hedges were included in accumulated other comprehensive loss as of December 31, 2024.
Examples of such eliminations include the following: • Investments in subsidiaries . The acquisition of a company results in an investment in debt or equity capital on the records of the parent company and a contribution to debt or equity capital on the records of the subsidiary.
Examples of such eliminations include the following: • Investments in subsidiaries . The acquisition of a company results in an investment in debt or equity capital on the records of the parent company and a contribution to debt or equity capital on the records of the subsidiary. Such investments and capital contributions are eliminated in consolidation. • Capital contributions .
Realized and unrealized gains and losses will be transferred from accumulated other comprehensive loss to current earnings as the underlying forecasted sales transaction is recognized. We estimate approximately $12.6 million in net realized and unrealized gains included in accumulated other comprehensive loss as of December 31, 2023 will be reclassified to current earnings in the next twelve months.
Realized and unrealized gains and losses will be transferred from accumulated other comprehensive loss to current earnings as the underlying forecasted sales transaction is recognized. We estimate approximately $7.9 million in net realized and unrealized gains included in accumulated other comprehensive loss as of December 31, 2024 will be reclassified to current earnings in the next twelve months.
As of December 31, 2023 and 2022, we recorded the following balances for the fair value of the contracts (in millions): December 31, Balance sheet line item: 2023 2022 Other current assets $ 2.7 $ 1.1 Other non-current assets $ 2.0 $ 0.4 Current derivative liabilities $ (1.1 ) $ (4.0 ) Non-current derivative liabilities $ (0.4 ) $ (3.6 ) Net unrealized gains of approximately $1.3 million related to the effective portion of the hedges were included in accumulated other comprehensive income (loss) as of December 31, 2023.
As of December 31, 2024 and 2023, we recorded the following balances for the fair value of the contracts (in millions): December 31, Balance sheet line item: 2024 2023 Other current assets $ — $ 2.7 Other non-current assets $ — $ 2.0 Current derivative liabilities $ (8.2 ) $ (1.1 ) Non-current derivative liabilities $ (2.0 ) $ (0.4 ) 97 Net unrealized losses of approximately $8.0 million related to the effective portion of the hedges were included in accumulated other comprehensive income (loss) as of December 31, 2024.
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvement to Income Tax Disclosures, amending income tax disclosure requirements for the effective tax rate reconciliation and income taxes paid. The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15, 2024 and are applied prospectively.
Accounting Standard Updates to Become Effective in Future Periods In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvement to Income Tax Disclosures, amending income tax disclosure requirements for the effective tax rate reconciliation and income taxes paid. The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15, 2024 and are applied prospectively.
If the price for each metal were to change by 10%, the change in the total value of the concentrates sold would be approximately $3.8 million.
If the price for each metal were to change by 10%, the change in the total value of the concentrates sold would be approximately $28.6 million.
Such investments and capital contributions are eliminated in consolidation. 89 • Capital contributions . Certain of Hecla's subsidiaries do not generate cash flow, either at all or that is sufficient to meet their capital needs, and their cash requirements are routinely met with inter-company advances from their parent companies.
Certain of Hecla's subsidiaries do not generate cash flow, either at all or that is sufficient to meet their capital needs, and their cash requirements are routinely met with inter-company advances from their parent companies.
The realized gains arose due to cash settlement of zinc and lead contracts in 2023 and zinc contracts in 2022 prior to maturity for cash proceeds of $8.5 million and $17.4 92 million, respectively. There were no early settlements in 2021.
The realized gains arose due to cash settlement of zinc and lead contracts in 2023 and zinc contracts in 2022 prior to maturity for cash proceeds of $8.5 million and $17.4 million, respectively.
Prior to November 1, 2021, these contracts were not designated as hedges for accounting purposes and were therefore marked-to-market through earnings each period. The forward contracts for silver and gold contained in our concentrate shipments have not been designated as hedges and are marked-to-market through earnings each period.
The forward contracts for silver and gold contained in our concentrate shipments have not been designated as hedges and are marked-to-market through earnings each period.
We recognized a net gain of $19.7 million during 2023 on the contracts utilized to manage exposure to prices of metals in our concentrate shipments, which is included in sales.
We recognized a net gain of $19.7 million during 2023, including a $20.6 million gain transferred from accumulated other comprehensive income (loss), on the contracts utilized to manage exposure to prices of metals in our concentrate shipments, which is included in sales.
Interest rates fluctuate due to economic factors beyond our control. We had $128 million drawn under the facility as of December 31, 2023. Assuming all revolving loans currently available to us were fully drawn, each one percentage point change in interest rates would result in a $2.2 million change in annual cash interest expense on our credit facility.
As of December 31, 2024, we had $23.0 million drawn under the facility and $6.2 million for letters of credit. Assuming all revolving loans currently available to us were fully drawn, each one percentage point change in interest rates would result in a $2.2 million change in annual cash interest expense on our credit facility.
The amendments in ASU 2023-07 are effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024, and are applied retrospectively. Early adoption is permitted. We are currently evaluating the impact of this update on our consolidated financial statements and disclosures.
The amendments in ASU 2024-03 are effective for fiscal years beginning after December 15, 2026, and for interim periods beginning after December 15, 2027, and are applied retrospectively. The Company is evaluating the impact of the amendments on our consolidated financial statements and disclosures.
Reserves and resources also play a key role in the valuation of certain assets in the determination of the purchase price allocations for acquisitions.
Our forecasts are also used in determining the level of valuation allowances on our deferred tax assets. Reserves and resources also play a key role in the valuation of certain assets in the determination of the purchase price allocations for acquisitions.
However, a cumulative three year loss is not solely determinative of the need for a valuation allowance. We also consider all other available positive and negative evidence in our analysis.
Concluding that a valuation allowance is not required is difficult when there is significant negative evidence which is objective and verifiable, such as cumulative losses in recent years. However, a cumulative three year loss is not solely determinative of the need for a valuation allowance. We also consider all other available positive and negative evidence in our analysis.
The following tables summarize the quantities of metals committed under forward sales contracts at December 31, 2023 and 2022: December 31, 2023 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 2023 settlements 735 3 441 15,542 $ 24.40 $ 2,045 $ 1.51 $ 1.00 Contracts on forecasted sales 2024 settlements — — — 56,713 N/A N/A N/A $ 0.98 2025 settlements — — — 49,273 N/A N/A N/A $ 0.98 December 31, 2022 Ounces/pounds under contract (in 000's) Average price per ounce/pound Silver Gold Zinc Lead Silver Gold Zinc Lead (ounces) (ounces) (pounds) (pounds) (ounces) (ounces) (pounds) (pounds) Contracts on provisional sales 2023 settlements 3,124 8 18,629 11,960 $ 21.55 $ 1,795 $ 1.38 $ 0.98 Contracts on forecasted sales 2023 settlements — — 37,533 75,618 N/A N/A $ 1.34 $ 1.00 2024 settlements — — — 45,856 N/A N/A N/A $ 0.99 Effective November 1, 2021, we designated the contracts for lead and zinc contained in our forecasted future shipments as hedges for accounting purposes, with gains and losses deferred to accumulated other comprehensive loss until the hedged product ships.
The following tables summarize the quantities of metals committed under forward sales contracts at December 31, 2024 and 2023: 95 December 31, 2024 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 2025 settlements 1,535 2 20,834 14,661 $ 31.46 $ 2,673 $ 1.40 $ 0.97 Contracts on forecasted sales 2025 settlements - - 59,194 47,840 NA NA $ 1.39 $ 0.99 2026 settlements — — 6,283 52,911 NA NA $ 1.41 $ 1.03 December 31, 2023 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 2024 settlements 735 3 441 15,542 $ 24.40 $ 2,045 $ 1.51 $ 1.00 Contracts on forecasted sales 2024 settlements — — — 56,713 N/A N/A N/A $ 0.98 2025 settlements — — — 49,273 N/A N/A N/A $ 0.98 We designate the contracts for lead and zinc contained in our forecasted future shipments as hedges for accounting purposes, with gains and losses deferred to accumulated other comprehensive loss until the hedged product ships.
A 10% change in the exchange rate between the USD and CAD from the rate at December 31, 2023 would have resulted in a change of approximately $8.9 million in our net foreign exchange gain or loss.
Foreign currency exchange rates are influenced by a number of factors beyond our control. A 10% change in the exchange rate between the USD and CAD from the rate at December 31, 2024 would have resulted in a change of approximately $7.5 million in our net foreign exchange gain or loss.
As such, foreign exchange gains and losses associated with the re-measurement of monetary assets and liabilities from CAD to USD are recorded to earnings each period. For the year ended December 31, 2023, we recognized a net foreign exchange loss of $3.8 million. Foreign currency exchange rates are influenced by a number of factors beyond our control.
We have determined the functional currency for our Canadian operations is the USD. As such, foreign exchange gains and losses associated with the re-measurement of monetary assets and liabilities from CAD to USD are recorded to earnings each period. For the year ended December 31, 2024, we recognized a net foreign exchange gain of $7.6 million.
We look to the nature and severity of cumulative pretax losses (if any) in the current three-year period ending on the evaluation date or the expectation of future pretax losses and the existence and frequency of prior cumulative pretax losses.
We look to the nature and severity of cumulative pretax losses (if any) in the current three-year period ending on the evaluation date or the expectation of future pretax losses and the existence and frequency of prior cumulative pretax losses. 91 We utilize a rolling twelve quarters of pre-tax income or loss as a measure of our cumulative results in recent years.
Net unrealized gains of approximately $1.2 million related to contracts not designated as hedges and no net unrealized gains or losses related to ineffectiveness of the hedges were included in fair value adjustments, net on our consolidated statements of operations and comprehensive (loss) income for the year ended December 31, 2023. 93 Interest Rates We have a $150 million credit facility, and amounts drawn on the facility are subject to variable rates of interest based on a spread over the London Interbank Offered Rate or an alternative base rate.
Net unrealized gains of approximately $1.2 million related to contracts not designated as hedges and no net unrealized gains or losses related to ineffectiveness of the hedges were included in fair value adjustments, net on our consolidated statements of operations and comprehensive (loss) income for the year ended December 31, 2023.
Therefore, the impact of changes in prices on the value of concentrates sold would be substantially offset by a gain or loss on forward contracts to the extent such contracts are utilized. 91 Commodity-Price Risk Management We may at times use commodity forward sales commitments, commodity swap contracts and commodity put and call option contracts to manage our exposure to fluctuation in the prices of certain metals we produce.
Commodity-Price Risk Management We may at times use commodity forward sales commitments, commodity swap contracts and commodity put and call option contracts to manage our exposure to fluctuation in the prices of certain metals we produce.
Reserves and resources are also a key component in forecasts, with which we compare future cash flows to current asset values in an effort to ensure that carrying values are reported appropriately. Our forecasts are also used in determining the level of valuation allowances on our deferred tax assets.
Reserve estimates are used in determining appropriate rates of units-of-production depreciation, with net book value of many assets depreciated over remaining estimated reserves. Reserves and resources are also a key component in forecasts, with which we compare future cash flows to current asset values in an effort to ensure that carrying values are reported appropriately.
We do not expect adoption of the new guidance to have a material impact on our consolidated financial statements and disclosures. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, amending reportable segment disclosure requirements to include disclosure of incremental segment information on an annual and interim basis.
New Accounting Pronouncements Accounting Standard Updates that Became Effective in the Current Period In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, amending reportable segment disclosure requirements to include disclosure of incremental segment information on an annual and interim basis.
At December 31, 2023, metals contained in concentrate sales and exposed to future price changes totaled approximately 0.7 million ounces of silver, 3,490 ounces of gold, 0.4 million pounds of zinc, and 12 million pounds of lead.
At December 31, 2024, metals contained in concentrate sales and exposed to future price changes totaled approximately 1.5 million ounces of silver, 2,000 ounces of gold, 39,150 tons of zinc, and 52,350 tons of lead.
Early adoption and retrospective application of the amendments are permitted. We are currently evaluating the impact of this update on our consolidated financial statements and disclosures.
Early adoption and retrospective application of the amendments are permitted. As the amendments apply to income tax disclosures only, the Company does not expect adoption to have a material impact on our consolidated financial statements and disclosures.
Reserves and resources are a culmination of many estimates and are not guarantees that we will recover the indicated quantities of metals or that we will do so at a profitable level. Business Combinations When acquiring a company, we first evaluate whether the transaction should be accounted for as an asset acquisition or a business combination.
Reserves and resources are a culmination of many estimates and are not guarantees that we will recover the indicated quantities of metals or that we will do so at a profitable level. Valuation of Deferred Tax Assets Our deferred income tax assets include certain future tax benefits.
Our assessment of reserves and resources occurs at least annually, and periodically utilizes external audits. Reserves and resources are a key component in the valuation of our properties, plants and equipment. Reserve estimates are used in determining appropriate rates of units-of-production depreciation, with net book value of many assets depreciated over remaining estimated reserves.
Our assessment of reserves and resources occurs at least annually. Periodically we utilize external specialists to perform independent audits of our operating properties reserves and resources. Reserves and resources are a key component in the valuation of our properties, plants and equipment.
When those prices increase compared to the contract prices, we incur losses on the contracts. Foreign Currency We operate or have mining interests in Canada, which exposes us to risks associated with fluctuations in the exchange rates between the USD and CAD. We have determined the functional currency for our Canadian operations is the USD.
The net loss recognized on the contracts offsets gains related to price adjustments on our provisional concentrate sales, both of which resulted from changes to silver, gold, lead and zinc prices between the time of sale and final settlement. 96 Foreign Currency We operate or have mining interests in Canada, which exposes us to risks associated with fluctuations in the exchange rates between the USD and CAD.
Item 7A. – Quantitative and Qualitative Disclosures About Market Risk - Commodity-Price Risk Management below for more information on our contract programs. Effective November 1, 2021, we designated the contracts for lead and zinc as hedges for accounting purposes, with gains and losses deferred to accumulated other comprehensive income until the hedged product ships.
Item 7A. – Quantitative and Qualitative Disclosures About Market Risk - Commodity-Price Risk Management below for more information on our contract programs.
Removed
Prior to November 1, 2021, these contracts were not designated as hedges for accounting purposes and were therefore marked-to-market through earnings each period.
Added
The amendments in ASU 2023-07 are effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024, and are applied retrospectively. We retrospectively adopted the segment disclosures required under these amended in the year ended December 31, 2024 consolidated financial statements, with no changes to our previously disclosed reportable segments.
Removed
If substantially all, generally interpreted as greater than 90% of the fair value is attributable to a single asset, the transaction is accounted for as an asset acquisition, and the transaction costs are capitalized. In a business combination, transaction costs are expensed.
Added
In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income (Topic 220): Expense Disaggregation Disclosures, which includes amendments to require the disclosure of certain specific costs and expenses that are included 92 in a relevant expense caption on the face of the income statement.
Removed
Regardless of whether we account for an acquisition as an asset acquisition or business combination, we are required to allocate the purchase price of acquired companies to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values at the acquisition date.
Added
Specific costs and expenses that would be required to be disclosed include: purchases of inventory, employee compensation, depreciation and intangible asset amortization. Additionally, a qualitative description of other items is required, equal to the difference between the relevant expense caption and the separately disclosed specific costs.
Removed
The valuation of assets acquired and liabilities assumed requires management to make significant estimates and assumptions, especially with respect to long-lived assets (including resources and exploration targets beyond the known reserve). These estimates include future metals prices and mineral reserves and resources, as discussed above.
Added
Condensed Consolidating Balance Sheets As of December 31, 2024 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Assets Cash and cash equivalents $ 14,755 $ 11,624 $ 489 $ — $ 26,868 Other current assets 37,143 125,698 24,443 — 187,284 Properties, plants, equipment and mine development, net 603 2,685,407 8,109 — 2,694,119 Intercompany receivable (payable) (437,765 ) (650,923 ) 594,307 494,381 — Investments in subsidiaries 2,451,783 (52 ) — (2,451,731 ) — Other non-current assets 502,802 21,686 28,775 (480,474 ) 72,789 Total assets $ 2,569,321 $ 2,193,440 $ 656,123 $ (2,437,824 ) $ 2,981,060 Liabilities and Stockholders' Equity Current liabilities $ 41,612 $ 156,652 $ 24,099 $ (24,525 ) $ 197,838 Long-term debt 464,075 $ 6,406 $ (37 ) $ 38,483 508,927 Non-current portion of accrued reclamation — $ 109,650 $ 1,512 $ — 111,162 Non-current deferred tax liability 24,122 $ 86,141 $ 3 $ — 110,266 Other non-current liabilities — $ 13,353 $ — $ — 13,353 Stockholders' equity 2,039,512 $ 1,821,238 $ 630,546 $ (2,451,782 ) 2,039,514 Total liabilities and stockholders' equity $ 2,569,321 $ 2,193,440 $ 656,123 $ (2,437,824 ) $ 2,981,060 Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) Year Ended December 31, 2024 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Revenues $ 1,291 $ 928,634 $ — $ — $ 929,925 Cost of sales (3,786 ) (544,459 ) — — (548,245 ) Depreciation, depletion, and amortization — (183,470 ) — — (183,470 ) General and administrative (20,404 ) (23,012 ) (1,989 ) — (45,405 ) Exploration and pre-development (520 ) (24,098 ) (2,703 ) — (27,321 ) Equity in earnings of subsidiaries 72,172 — — (72,172 ) — Other income (expense) (2,965 ) (65,154 ) 756 8,095 (59,268 ) Income (loss) before income and mining taxes 45,788 88,441 (3,936 ) (64,077 ) 66,216 (Provision) benefit from income and mining taxes (9,986 ) (12,479 ) 151 (8,099 ) (30,414 ) Net income (loss) 35,802 75,962 (3,785 ) (72,176 ) 35,802 Preferred stock dividends (552 ) — — — (552 ) Income (loss) applicable to common stockholders 35,250 75,962 (3,785 ) (72,176 ) 35,250 Net income (loss) 35,802 75,962 (3,785 ) (72,177 ) 35,802 Other comprehensive loss (16,103 ) — — — (16,103 ) Comprehensive income (loss) $ 19,699 $ 75,962 $ (3,785 ) $ (72,177 ) $ 19,699 Forward-Looking Statements 94 The foregoing discussion and analysis, as well as certain information contained elsewhere in this report, contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act, and are intended to be covered by the safe harbor created thereby.
Removed
Management may also be required to make estimates related to the valuation of deferred tax assets or liabilities as part of the purchase price allocation for business combinations.
Added
Therefore, the impact of changes in prices on the value of concentrates sold would be substantially offset by a gain or loss on forward contracts to the extent such contracts are utilized.
Removed
In some cases, we use third-party appraisers to determine the fair values of property and other identifiable assets. 87 Valuation of Deferred Tax Assets Our deferred income tax assets include certain future tax benefits.
Added
We recognized a net gain of $1.3 million, including a $11.4 million gain transferred from accumulated other comprehensive income (loss), during 2024 on the contracts utilized to manage exposure to prices of metals in our concentrate shipments, which is included in sales.
Removed
We utilize a rolling twelve quarters of pre-tax income or loss as a measure of our cumulative results in recent years. Concluding that a valuation allowance is not required is difficult when there is significant negative evidence which is objective and verifiable, such as cumulative losses in recent years.
Added
The net losses and gains recognized on the contracts offset gains and losses related to price adjustments on our provisional concentrate sales due to changes to silver, gold, lead and zinc prices between the time of sale and final settlement.
Removed
New Accounting Pronouncements Accounting Standards Updates Adopted In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04 (“ASU 2020-04”), Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional guidance for a limited period of time to ease the potential burden on accounting for contract modifications caused by reference rate reform.
Added
The net gain recognized on the contracts offsets loss related to price adjustments on our provisional concentrate sales, both of which resulted from changes to silver, gold, lead and zinc prices between the time of sale and final settlement.
Removed
In January 2021, ASU 2021-01, Reference Rate Reform (Topic 848): Scope was issued which broadened the scope of ASU 2020-04 to include certain derivative instruments. In December 2022, ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, was issued which deferred the sunset date of ASU 2020-04.
Added
We recognized a net loss of $5.8 million, including a $6.0 million loss transferred from accumulated other comprehensive income (loss), during 2022 on the contracts utilized to manage exposure to prices of metals in our concentrate shipments, which is included in sales of products and other income.
Removed
The guidance 88 is effective for all entities as of March 12, 2020 through December 31, 2024. The guidance may be adopted over time as reference rate reform activities occur and should be applied on a prospective basis.
Added
Net realized losses of approximately $3.8 million on contracts related to underlying expenses which have been recognized were transferred from accumulated other comprehensive loss and included in cost of sales and other direct production costs for the year ended December 31, 2024.
Removed
Certain of our derivative instruments previously referenced London Interbank Offered Rate ("LIBOR") based rates and have been amended to eliminate the LIBOR-based rate references prior to July 1, 2023. There have been no significant impacts to our financial results, financial position or cash flows from the transition from LIBOR to alternative reference interest rates.
Added
Net unrealized losses of approximately $5.7 million related to contracts not designated as hedges and no net unrealized gains or losses related to ineffectiveness of the hedges were included in fair value adjustments, net on our consolidated statements of operations and comprehensive (loss) income for the year ended December 31, 2024.
Removed
Accounting Standards Updates to Become Effective in Future Periods In August 2023, the FASB issued ASU 2023-05, Business Combinations - Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement, which clarifies the business combination accounting for joint venture formations.
Added
Net realized gains of approximately $0.8 million on contracts related to underlying expenses which have been recognized were transferred from accumulated other comprehensive loss and included in cost of sales and other direct production costs for the year ended December 31, 2022.
Removed
The amendments in the ASU seek to reduce diversity in practice that has resulted from a lack of authoritative guidance regarding the accounting for the formation of joint ventures in separate financial statements. The amendments also seek to clarify the initial measurement of joint venture net assets, including businesses contributed to a joint venture.
Added
Net unrealized gains of approximately $0.1 million related to contracts not designated as hedges and no net unrealized gains or losses related to ineffectiveness of the hedges were included in fair value adjustments, net on our consolidated statements of operations and comprehensive income (loss) for the year ended December 31, 2022.
Removed
The guidance is applicable to all entities involved in the formation of a joint venture. The amendments are effective for all joint venture formations with a formation date on or after January 1, 2025. Early adoption and retrospective application of the amendments are permitted.
Added
Interest Rates We have a $225.0 million credit facility, and amounts drawn on the facility are subject to variable rates of interest based on a spread over the London Interbank Offered Rate or an alternative base rate. Interest rates fluctuate due to economic factors beyond our control.
Removed
Condensed Consolidating Balance Sheets As of December 31, 2023 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Assets Cash and cash equivalents $ 89,377 $ 16,053 $ 944 $ — $ 106,374 Other current assets 15,929 127,531 10,428 — 153,888 Properties, plants, equipment and mineral interests - net 642 2,657,261 8,347 — 2,666,250 Intercompany receivable (payable) (132,464 ) (812,078 ) 589,842 354,700 — Investments in subsidiaries 2,248,533 — — (2,248,533 ) — Other non-current assets 432,468 21,960 29,353 (399,189 ) 84,592 Total assets $ 2,654,485 $ 2,010,727 $ 638,914 $ (2,293,022 ) $ 3,011,104 Liabilities and Stockholders' Equity Current liabilities $ 50,383 $ 141,439 $ 10,128 $ (44,490 ) $ 157,460 Long-term debt 636,000 17,063 0 — 653,063 Non-current portion of accrued reclamation — 108,731 2,066 — 110,797 Non-current deferred tax liability — 104,835 — — 104,835 Other non-current liabilities — 16,845 — — 16,845 Stockholders' equity 1,968,102 1,621,814 626,720 (2,248,532 ) 1,968,104 Total liabilities and stockholders' equity $ 2,654,485 $ 2,010,727 $ 638,914 $ (2,293,022 ) $ 3,011,104 90 Condensed Consolidating Statements of Operations and Comprehensive (Loss) Income Year Ended December 31, 2023 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Revenues $ 19,677 $ 700,550 $ — $ — $ 720,227 Cost of sales (3,608 ) (454,896 ) — — (458,504 ) Depreciation, depletion, and amortization — (148,774 ) — — (148,774 ) General and administrative (17,222 ) (23,767 ) (1,733 ) — (42,722 ) Exploration and pre-development (559 ) (28,835 ) (3,118 ) — (32,512 ) Equity in earnings of subsidiaries (84,847 ) — — 84,847 — Other income (expense) (3,228 ) (127,326 ) (3,349 ) 13,193 (120,710 ) (Loss) income before income and mining taxes (89,787 ) (83,048 ) (8,200 ) 98,040 (82,995 ) Benefit (provision) from income and mining taxes 5,570 6,348 53 (13,193 ) (1,222 ) Net (loss) income (84,217 ) (76,700 ) (8,147 ) 84,847 (84,217 ) Preferred stock dividends (552 ) — — — (552 ) (Loss) income applicable to common stockholders (84,769 ) (76,700 ) (8,147 ) 84,847 (84,769 ) Net (loss) income (84,217 ) (76,700 ) (8,147 ) 84,847 (84,217 ) Changes in comprehensive income 3,389 — — — 3,389 Comprehensive (loss) income $ (80,828 ) $ (76,700 ) $ (8,147 ) $ 84,847 $ (80,828 ) Forward-Looking Statements The foregoing discussion and analysis, as well as certain information contained elsewhere in this report, contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act, and are intended to be covered by the safe harbor created thereby.
Removed
We recognized a $32.9 million net loss during 2021 on the contracts utilized to manage exposure to changes in prices for forecasted future sales prior to their hedge designation.
Removed
The net loss on these contracts is included in the fair value adjustments, net line item under other income (expense), as they relate to forecasted future sales, as opposed to sales that have already taken place but are subject to final pricing (as discussed in the preceding paragraph).
Removed
The net loss for 2021 is the result of increasing zinc and lead prices. These programs, when utilized and the contracts are not settled prior to their maturity, are designed to mitigate the impact of potential future declines in silver, gold, zinc and lead prices from the price levels established in the contracts (see average price information above).

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