QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
State or Other Jurisdiction of Incorporation or Organization |
I.R.S. Employer Identification No. | |
Address of Principal Executive Offices |
Zip Code |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
☒ | Accelerated filer | ☐ | ||||
Non-accelerated filer |
☐ | Smaller reporting company | ||||
Emerging growth company |
Class |
Shares Outstanding November 4, 2022 | |
Common stock, par value $0.25 per share |
Page | ||||
4 | ||||
5 | ||||
6 | ||||
7 | ||||
9 | ||||
23 | ||||
60 | ||||
61 | ||||
61 | ||||
61 | ||||
62 | ||||
62 | ||||
64 |
* | Items 2, 3 and 5 of Part II are omitted as they are not applicable. |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, 2022 |
September 30, 2021 |
September 30, 2022 |
September 30, 2021 |
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Sales |
$ | |
$ | |
$ | |
$ | |
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Cost of sales and other direct production costs |
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Depreciation, depletion and amortization |
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Total cost of sales |
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Gross profit |
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Other operating expenses: |
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General and administrative |
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Exploration and pre-development |
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Care and maintenance costs |
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Provision for closed operations and environmental matters |
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Other operating expense |
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Total other operating expenses |
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(Loss) income from operations |
( |
) | ( |
) | ( |
) | ||||||||||
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|||||||||
Other income (expense): |
||||||||||||||||
Interest expense |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Fair value adjustments, net |
( |
) | ( |
) | ( |
) | ||||||||||
Net foreign exchange gain |
||||||||||||||||
Other income (expense) |
( |
) | ||||||||||||||
|
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|
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|||||||||
Total other (expense) income |
( |
) | ( |
) | ( |
) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
(Loss) income before income and mining taxes |
( |
) | ( |
) | ( |
) | ||||||||||
Income and mining tax benefit |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net (loss) income |
( |
) | ( |
) | ( |
) | ||||||||||
Preferred stock dividends |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
(Loss) income applicable to common stockholders |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ||||||
|
|
|
|
|
|
|
|
|||||||||
Comprehensive income (loss): |
||||||||||||||||
Net (loss) income |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ||||||
Change in fair value of derivative contracts designated as hedge transactions |
( |
) | ( |
) | ( |
) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Comprehensive (loss) income |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ||||||
|
|
|
|
|
|
|
|
|||||||||
Basic (loss) income per common share after preferred dividends |
$ | ( |
) | $ | $ | ( |
) | $ | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Diluted (loss) income per common share after preferred dividends |
$ | ( |
) | $ | $ | ( |
) | $ | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Weighted average number of common shares outstanding – basic |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Weighted average number of common shares outstanding – diluted |
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|
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|
|
|
|||||||||
Cash dividends declared per common share |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
Nine Months Ended | ||||||||
September 30, 2022 |
September 30, 2021 |
|||||||
Operating activities: |
||||||||
Net (loss) income |
$ | ( |
) | $ | ||||
Non-cash elements included in net (loss) income: |
||||||||
Depreciation, depletion and amortization |
||||||||
Write-down of inventory |
||||||||
Fair value adjustments, net |
( |
) | ||||||
Provision for reclamation and closure costs |
||||||||
Stock compensation |
||||||||
Deferred income taxes |
( |
) | ( |
) | ||||
Foreign exchange (gain) loss |
( |
) | ||||||
Other non-cash items, net |
||||||||
Change in assets and liabilities: |
||||||||
Accounts receivable |
( |
) | ||||||
Inventories |
( |
) | ||||||
Other current and non-current assets |
( |
) | ||||||
Accounts payable, accrued and other current liabilities |
( |
) | ( |
) | ||||
Accrued payroll and related benefits |
( |
) | ||||||
Accrued taxes |
( |
) | ||||||
Accrued reclamation and closure costs and other non-current liabilities |
( |
) | ||||||
|
|
|
|
|||||
Cash provided by operating activities |
||||||||
Investing activities: |
||||||||
Additions to properties, plants, equipment and mineral interests |
( |
) | ( |
) | ||||
Change in restricted cash |
||||||||
Proceeds from sale of investments |
||||||||
Proceeds from disposition of properties, plants and equipment |
||||||||
Purchases of investments |
( |
) | ||||||
Acquisitions, net |
||||||||
Pre-acquisition advance to Alexco |
( |
) | ||||||
Purchase of carbon credits |
( |
) | ||||||
|
|
|
|
|||||
Net cash used in investing activities |
( |
) | ( |
) | ||||
Financing activities: |
||||||||
Proceeds from sale of common stock, net |
||||||||
Acquisition of treasury stock |
( |
) | ( |
) | ||||
Dividends paid to common and preferred stockholders |
( |
) | ( |
) | ||||
Credit facility fees paid |
( |
) | ( |
) | ||||
Draw on revolving credit facility |
— |
|||||||
Repayments of finance leases |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Net cash provided by (used in) financing activities |
( |
) | ||||||
Effect of exchange rates on cash |
( |
) | ( |
) | ||||
Net (decrease) increase in cash, cash equivalents and restricted cash |
( |
) | ||||||
Cash, cash equivalents and restricted cash at beginning of period |
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|
|
|||||
Cash, cash equivalents and restricted cash at end of period |
$ | |
$ | |
||||
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|||||
Supplemental disclosure of cash flow information: |
||||||||
Cash paid for interest |
$ | $ | ||||||
Cash paid for income and mining taxes, net |
$ | $ | ||||||
Significant non-cash investing and financing activities: |
||||||||
Addition of finance lease obligations and right-of-use |
$ | $ | ||||||
Common stock issued to Alexco Resource Corp. shareholders |
$ | $ | ||||||
Common stock issued to settle acquired silver stream |
$ | $ | ||||||
Common stock issued to pension plans |
$ | $ |
September 30, 2022 |
December 31, 2021 |
|||||||
ASSETS | | |||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | $ | ||||||
Accounts receivable: |
||||||||
Trade |
||||||||
Other, net |
||||||||
Inventories: |
||||||||
Concentrates, doré, and stockpiled ore |
||||||||
Materials and supplies |
||||||||
Derivatives assets |
||||||||
Other current assets |
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|
|||||
Total current assets |
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Investments |
||||||||
Restricted cash |
||||||||
Properties, plants, equipment and mineral interests, net |
||||||||
Operating lease right-of-use |
||||||||
Deferred income taxes |
||||||||
Derivatives assets |
||||||||
Other non-current assets |
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|
|||||
Total assets |
$ | $ | ||||||
|
|
|
|
|||||
LIABILITIES | | |||||||
Current liabilities: |
||||||||
Accounts payable and accrued liabilities |
$ | $ | ||||||
Accrued payroll and related benefits |
||||||||
Accrued taxes |
||||||||
Finance and operating leases |
||||||||
Accrued interest |
||||||||
Derivatives liabilities |
||||||||
Other current liabilities |
||||||||
Accrued reclamation and closure costs |
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|
|||||
Total current liabilities |
||||||||
Finance and operating leases |
||||||||
Accrued reclamation and closure costs |
||||||||
Long-term debt |
||||||||
Deferred tax liability |
||||||||
Derivatives liabilities |
||||||||
Other non-current liabilities |
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|
|||||
Total liabilities |
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|
|||||
Commitments and contingencies ( Notes 4 7 8, 10 |
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STOCKHOLDERS’ EQUITY | | |||||||
Preferred stock, |
||||||||
Series B preferred stock, preference – $ |
||||||||
Common stock, 2022 – |
||||||||
Capital surplus |
||||||||
Accumulated deficit |
( |
) | ( |
) | ||||
Accumulated other comprehensive income (loss) |
( |
) | ( |
) | ||||
Less treasury stock, at cost; September 30, 2022 – |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Total stockholders’ equity |
||||||||
|
|
|
|
|||||
Total liabilities and stockholders’ equity |
$ | |
$ | |
||||
|
|
|
|
Three Months Ended September 30, 2022 |
||||||||||||||||||||||||||||
Series B Preferred Stock |
Common Stock |
Capital Surplus |
Accumulated Deficit |
Accumulated Other Comprehensive Income (Loss), net |
Treasury Stock |
Total |
||||||||||||||||||||||
Balances, July 1, 2022 |
$ | $ | $ | $ | ( |
) | $ | $ | ( |
) | $ | |||||||||||||||||
Net loss |
( |
) | ( |
) | ||||||||||||||||||||||||
Common stock issued to Alexco Resource Corp. shareholders ( |
||||||||||||||||||||||||||||
Common stock issued to settle the acquired silver stream ( |
||||||||||||||||||||||||||||
Common stock issued for 401(k) match ( shares) |
||||||||||||||||||||||||||||
Common stock issued under ATM program, net ( |
||||||||||||||||||||||||||||
Common stock dividends declared ( common share) |
( |
) | ( |
) | ||||||||||||||||||||||||
Series B Preferred Stock dividends declared ( per share) |
( |
) | ( |
) | ||||||||||||||||||||||||
Restricted stock units granted |
|
|||||||||||||||||||||||||||
Other comprehensive loss |
( |
) | ( |
) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balances, September 30, 2022 |
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 3 0 , 2021 |
||||||||||||||||||||||||||||
Series B Preferred Stock |
Common Stock |
Capital Surplus |
Accumulated Deficit |
Accumulated Other Comprehensive Income (Loss), net |
Treasury Stock |
Total | ||||||||||||||||||||||
Balances, July 1, 2021 |
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | |||||||||||||||
Net loss |
( |
) | ( |
) | ||||||||||||||||||||||||
Restricted stock units granted |
||||||||||||||||||||||||||||
Common stock dividends declared ( |
( |
) | ( |
) | ||||||||||||||||||||||||
Series B Preferred Stock dividends declared ( |
( |
) | ( |
) | ||||||||||||||||||||||||
Common stock issued for 401(k) match ( |
||||||||||||||||||||||||||||
Common stock issued to pension plans ( |
||||||||||||||||||||||||||||
Other comprehensive loss |
( |
) | ( |
) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balances, September 30, 2021 |
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2022 |
||||||||||||||||||||||||||||
Series B Preferred Stock |
Common Stock |
Capital Surplus |
Accumulated Deficit |
Accumulated Other Comprehensive Income (Loss), net |
Treasury Stock |
Total |
||||||||||||||||||||||
Balances, January 1, 2022 |
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | |||||||||||||||
Net loss |
( |
) | ( |
) | ||||||||||||||||||||||||
Restricted stock units granted |
||||||||||||||||||||||||||||
Restricted stock units and performance stock units distributed ( |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
Common stock issued for 401(k) match ( shares) |
||||||||||||||||||||||||||||
Common stock issued to directors ( |
||||||||||||||||||||||||||||
Common stock issued to pension plans ( |
||||||||||||||||||||||||||||
Common stock issued to Alexco Resource Corp. shareholders ( |
||||||||||||||||||||||||||||
Common stock issued to settle the acquired silver stream ( |
||||||||||||||||||||||||||||
Common stock issued under ATM program, net ( |
—— |
|||||||||||||||||||||||||||
Common stock dividends declared ( |
( |
) | ( |
) | ||||||||||||||||||||||||
Series B Preferred Stock dividends declared ($ per share) |
( |
) | ( |
) | ||||||||||||||||||||||||
Other comprehensive income |
||||||||||||||||||||||||||||
Balances, September 30, 2022 |
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | |||||||||||||||
Nine Months Ended September 30, 2021 | ||||||||||||||||||||||||||||
Series B Preferred Stock |
Common Stock |
Capital Surplus |
Accumulated Deficit |
Accumulated Other Comprehensive Income (Loss), net |
Treasury Stock |
Total | ||||||||||||||||||||||
Balances, January 1, 2021 |
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | |||||||||||||||
Net income |
||||||||||||||||||||||||||||
Restricted stock units granted |
||||||||||||||||||||||||||||
Restricted stock units distributed ( |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
Common stock dividends declared ( |
( |
) | ( |
) | ||||||||||||||||||||||||
Series B Preferred Stock dividends declared ($ per share) |
( |
) | ( |
) | ||||||||||||||||||||||||
Common stock issued for 401(k) match ( shares) |
||||||||||||||||||||||||||||
Common stock issued to pension plans ( |
||||||||||||||||||||||||||||
Common stock issued to directors ( |
||||||||||||||||||||||||||||
Other comprehensive loss |
( |
) | ( |
) | ||||||||||||||||||||||||
Balances, September 30, 2021 |
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | |||||||||||||||
Note 1. |
Basis of Preparation of Financial Statements |
Note 2. |
Business Segments and Sales of Products |
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Net sales to unaffiliated customers: |
||||||||||||||||
Greens Creek |
$ | $ | $ | $ | ||||||||||||
Lucky Friday |
||||||||||||||||
Casa Berardi |
||||||||||||||||
Nevada Operations |
||||||||||||||||
Other |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | $ | $ | $ | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Income (loss) from operations: |
||||||||||||||||
Greens Creek |
$ | $ | $ | $ | ||||||||||||
Lucky Friday |
||||||||||||||||
Casa Berardi |
( |
) | ( |
) | ( |
) | ||||||||||
Nevada Operations |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Other |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | |||||||
|
|
|
|
|
|
|
|
September 30, 2022 |
December 31, 2021 |
|||||||
Identifiable assets: |
||||||||
Greens Creek |
$ | $ | ||||||
Lucky Friday |
||||||||
Casa Berardi |
||||||||
Nevada Operations |
||||||||
Other |
||||||||
|
|
|
|
|||||
$ | $ | |||||||
|
|
|
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Silver |
$ | $ | $ | $ | ||||||||||||
Gold |
||||||||||||||||
Lead |
||||||||||||||||
Zinc |
||||||||||||||||
Less: Smelter and refining charges |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | $ | $ | $ | |||||||||||||
|
|
|
|
|
|
|
|
Note 3. |
Income and Mining Taxes |
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
2022 |
2021 |
2022 |
2021 |
|||||||||||||
Current: | ||||||||||||||||
Domestic |
$ | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||||
Foreign |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total current income and mining tax provision |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Deferred: | ||||||||||||||||
Domestic |
||||||||||||||||
Foreign |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total deferred income and mining tax benefit |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total income and mining tax benefit (provision) |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
Note 4. |
Employee Benefit Plans |
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Service cost |
$ | $ | $ | $ | ||||||||||||
Interest cost |
||||||||||||||||
Expected return on plan assets |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Amortization of prior service cost |
||||||||||||||||
Amortization of net loss |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net periodic pension cost |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
Note 5. |
(Loss) Income Per Common Share |
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
2022 |
2021 |
2022 |
2021 |
|||||||||||||
Numerator |
||||||||||||||||
Net (loss) income |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ||||||
Preferred stock dividends |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net (loss) income applicable to common shares |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ||||||
|
|
|
|
|
|
|
|
|||||||||
Denominator |
||||||||||||||||
Basic weighted average common shares |
||||||||||||||||
Dilutive restricted stock units, warrants and deferred shares |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Diluted weighted average common shares |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Basic (loss) income per common share |
$ |
( |
) |
$ |
$ |
( |
) |
$ |
||||||||
Diluted (loss) income per common share |
$ |
( |
) |
$ |
$ |
( |
) |
$ |
Note 6. |
Stockholders’ Equity |
Grant date | Award type | Number granted | Grant date fair value | |||
June 21, 2022 | Restricted stock | $ | ||||
June 21, 2022 | Performance based | $ | ||||
June 28, 2022 | Directors retainer | $ | ||||
September 30, 2022 | Restricted stock | $ |
Quarter | Realized Silver Price | Silver-linked component |
Minimum component | Total dividend per share | ||||
First |
$ |
$ |
$ |
$ | ||||
Second |
$ |
$ |
$ |
$ |
Note 7. |
Debt, Credit Facility and Leases |
September 30, 2022 |
||||||||||||
Senior Notes |
IQ Notes |
Total |
||||||||||
Principal |
$ | $ | $ | |||||||||
Unamortized discount/premium and issuance costs |
( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|||||||
Long-term debt balance |
$ | $ | $ | |||||||||
|
|
|
|
|
|
December 31, 2021 |
||||||||||||
Senior Notes |
IQ Notes |
Total |
||||||||||
Principal |
$ | $ | $ | |||||||||
Unamortized discount/premium and issuance costs |
( |
) | ( |
) | ||||||||
|
|