10-Q 1 hl-20240630.htm 10-Q 10-Q
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2024

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to .

Commission File Number: 1-8491

 

HECLA MINING COMPANY

(Exact Name of Registrant as Specified in its Charter)

 

 

Delaware

77-0664171

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer
Identification No.)

6500 N. Mineral Drive, Suite 200

Coeur d’Alene, Idaho

83815-9408

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (208) 769-4100

 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Common Stock, par value $0.25 per share

 

HL

 

New York Stock Exchange

Series B Cumulative Convertible Preferred

Stock, par value $0.25 per share

 

HL-PB

 

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No __

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No __

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

 

 

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class

 

Shares Outstanding August 2, 2024

Common stock, par value

$0.25 par value per share

 

629,715,867

 

 

 


 

Hecla Mining Company and Subsidiaries

 

Form 10-Q

 

For the Quarter Ended June 30, 2024

INDEX*

 

 

 

Page

 

 

 

PART I.

FINANCIAL INFORMATION

3

 

 

 

Item 1.

Financial Statements (Unaudited)

3

 

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - Three Months Ended and Six Months Ended June 30, 2024 and 2023

3

 

Condensed Consolidated Statements of Cash Flows - Six Months Ended June 30, 2024 and 2023

4

 

Condensed Consolidated Balance Sheets - June 30, 2024 and December 31, 2023

5

 

Condensed Consolidated Statements of Changes in Stockholders' Equity – Three Months Ended and Six Months Ended June 30, 2024 and 2023

6

 

Notes to Condensed Consolidated Financial Statements (unaudited)

8

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

21

 

Overview

21

 

Consolidated Results of Operations

22

 

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)

36

 

Financial Liquidity and Capital Resources

45

 

Contractual Obligations, Contingent Liabilities and Commitments

48

 

Critical Accounting Estimates

48

 

Off-Balance Sheet Arrangements

48

 

Guarantor Subsidiaries

49

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

52

Item 4.

Controls and Procedures

53

 

 

 

PART II.

OTHER INFORMATION

54

 

 

 

Item 1.

Legal Proceedings

54

Item 1A.

Risk Factors

54

Item 4.

Mine Safety Disclosures

54

Item 5.

Other Information

54

Item 6.

Exhibits

55

Signatures

56

*Items 2 and 3 of Part II are omitted as they are not applicable.

 

 

2


 

Part I - Financial Information

 

 

Item 1. Financial Statements

 

Hecla Mining Company and Subsidiaries

 

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited)

(Dollars and shares in thousands, except for per-share amounts)

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30, 2024

 

 

June 30, 2023

 

 

June 30, 2024

 

 

June 30, 2023

 

Sales

 

$

245,657

 

 

$

178,131

 

 

$

435,185

 

 

$

377,631

 

Cost of sales and other direct production costs

 

 

140,464

 

 

 

107,754

 

 

 

261,925

 

 

 

233,304

 

Depreciation, depletion and amortization

 

 

53,763

 

 

 

32,718

 

 

 

102,670

 

 

 

71,720

 

Total cost of sales

 

 

194,227

 

 

 

140,472

 

 

 

364,595

 

 

 

305,024

 

Gross profit

 

 

51,430

 

 

 

37,659

 

 

 

70,590

 

 

 

72,607

 

Other operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative

 

 

14,740

 

 

 

10,783

 

 

 

25,956

 

 

 

22,853

 

Exploration and pre-development

 

 

6,682

 

 

 

6,893

 

 

 

11,024

 

 

 

11,860

 

Ramp-up and suspension costs

 

 

5,538

 

 

 

16,323

 

 

 

20,061

 

 

 

27,659

 

Provision for closed operations and environmental matters

 

 

1,153

 

 

 

3,111

 

 

 

2,139

 

 

 

4,155

 

Other operating income, net

 

 

(17,283

)

 

 

(4,262

)

 

 

(34,254

)

 

 

(4,284

)

Total other operating expenses

 

 

10,830

 

 

 

32,848

 

 

 

24,926

 

 

 

62,243

 

Income from operations

 

 

40,600

 

 

 

4,811

 

 

 

45,664

 

 

 

10,364

 

Other expense:

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(12,505

)

 

 

(10,311

)

 

 

(25,149

)

 

 

(20,476

)

Fair value adjustments, net

 

 

5,002

 

 

 

(2,558

)

 

 

3,150

 

 

 

623

 

Net foreign exchange gain (loss)

 

 

2,673

 

 

 

(3,850

)

 

 

6,655

 

 

 

(3,742

)

Other income

 

 

1,180

 

 

 

1,376

 

 

 

2,692

 

 

 

2,768

 

Total other expense

 

 

(3,650

)

 

 

(15,343

)

 

 

(12,652

)

 

 

(20,827

)

Income (loss) before income and mining taxes

 

 

36,950

 

 

 

(10,532

)

 

 

33,012

 

 

 

(10,463

)

Income and mining tax provision

 

 

(9,080

)

 

 

(5,162

)

 

 

(10,895

)

 

 

(8,404

)

Net income (loss)

 

 

27,870

 

 

 

(15,694

)

 

 

22,117

 

 

 

(18,867

)

Preferred stock dividends

 

 

(138

)

 

 

(138

)

 

 

(276

)

 

 

(276

)

Net income (loss) applicable to common stockholders

 

$

27,732

 

 

$

(15,832

)

 

$

21,841

 

 

$

(19,143

)

Comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

27,870

 

 

$

(15,694

)

 

$

22,117

 

 

$

(18,867

)

Change in fair value of derivative contracts designated as hedge transactions

 

 

(6,488

)

 

 

5,232

 

 

 

(11,891

)

 

 

11,748

 

Comprehensive income (loss)

 

$

21,382

 

 

$

(10,462

)

 

$

10,226

 

 

$

(7,119

)

Basic income (loss) per common share after preferred dividends

 

$

0.04

 

 

$

(0.03

)

 

$

0.04

 

 

$

(0.03

)

Diluted income (loss) per common share after preferred dividends

 

$

0.04

 

 

$

(0.03

)

 

$

0.04

 

 

$

(0.03

)

Weighted average number of common shares outstanding - basic

 

 

617,106

 

 

 

604,088

 

 

 

616,649

 

 

 

602,077

 

Weighted average number of common shares outstanding - diluted

 

 

622,206

 

 

 

604,088

 

 

 

621,936

 

 

 

602,077

 

 

The accompanying notes are an integral part of the interim condensed consolidated financial statements.

 

3


 

Hecla Mining Company and Subsidiaries

 

Condensed Consolidated Statements of Cash Flows (Unaudited)

(In thousands)

 

 

Six Months Ended

 

 

 

June 30, 2024

 

 

June 30, 2023

 

Operating activities:

 

 

 

 

 

 

Net income (loss)

 

$

22,117

 

 

$

(18,867

)

Non-cash elements included in net income (loss):

 

 

 

 

 

 

Depreciation, depletion and amortization

 

 

105,147

 

 

 

74,610

 

Inventory adjustments

 

 

9,896

 

 

 

7,518

 

Fair value adjustments, net

 

 

(3,150

)

 

 

(623

)

Provision for reclamation and closure costs

 

 

3,606

 

 

 

5,328

 

Stock-based compensation

 

 

4,146

 

 

 

2,688

 

Deferred income taxes

 

 

5,688

 

 

 

4,585

 

Foreign exchange (gain) loss

 

 

(6,655

)

 

 

3,807

 

Other non-cash items, net

 

 

(196

)

 

 

1,574

 

Change in assets and liabilities:

 

 

 

 

 

 

Accounts receivable

 

 

(17,114

)

 

 

28,564

 

Inventories

 

 

(30,873

)

 

 

(18,121

)

Other current and non-current assets

 

 

8,342

 

 

 

(15,063

)

Accounts payable, accrued and other current liabilities

 

 

(2,301

)

 

 

143

 

Accrued payroll and related benefits

 

 

3,820

 

 

 

(9,543

)

Accrued taxes

 

 

(1,016

)

 

 

(85

)

Accrued reclamation and closure costs and other non-current liabilities

 

 

(5,659

)

 

 

(2,135

)

Cash provided by operating activities

 

 

95,798

 

 

 

64,380

 

Investing activities:

 

 

 

 

 

 

Additions to property, plant and mine development

 

 

(98,009

)

 

 

(105,911

)

Proceeds from disposition of assets

 

 

1,274

 

 

 

80

 

Purchases of investments

 

 

(73

)

 

 

 

Net cash used in investing activities

 

 

(96,808

)

 

 

(105,831

)

Financing activities:

 

 

 

 

 

 

Proceeds from sale of common stock, net

 

 

1,103

 

 

 

25,888

 

Acquisition of treasury stock

 

 

(1,197

)

 

 

(2,036

)

Borrowing of debt

 

 

67,000

 

 

 

56,000

 

Repayment of debt

 

 

(133,000

)

 

 

(25,000

)

Dividends paid to common and preferred stockholders

 

 

(7,994

)

 

 

(7,808

)

Repayments of finance leases

 

 

(5,505

)

 

 

(4,765

)

Net cash (used in) provided by financing activities

 

 

(79,593

)

 

 

42,279

 

Effect of exchange rates on cash

 

 

(1,180

)

 

 

1,217

 

Net (decrease) increase in cash, cash equivalents and restricted cash and cash equivalents

 

 

(81,783

)

 

 

2,045

 

Cash, cash equivalents and restricted cash and cash equivalents at beginning of period

 

 

107,539

 

 

 

105,907

 

Cash, cash equivalents and restricted cash and cash equivalents at end of period

 

$

25,756

 

 

$

107,952

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

Cash paid for interest

 

$

23,442

 

 

$

18,812

 

Cash paid for income and mining taxes, net

 

$

4,999

 

 

$

6,152

 

Significant non-cash investing and financing activities:

 

 

 

 

 

 

Addition of finance lease obligations and right-of-use assets

 

$

 

 

$

16,092

 

Common stock issued as incentive compensation

 

$

3,355

 

 

$

359

 

Common stock issued for 401-K match

 

$

2,322

 

 

$

2,256

 

 

The accompanying notes are an integral part of the interim condensed consolidated financial statements.

4


 

Hecla Mining Company and Subsidiaries

 

Condensed Consolidated Balance Sheets (Unaudited)

(In thousands, except shares)

 

 

June 30, 2024

 

 

December 31, 2023

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

24,585

 

 

$

106,374

 

Accounts receivable:

 

 

 

 

 

 

Trade

 

 

30,242

 

 

 

14,740

 

Other, net

 

 

19,051

 

 

 

18,376

 

Inventories:

 

 

 

 

 

 

Product inventories

 

 

44,790

 

 

 

28,823

 

Materials and supplies

 

 

64,954

 

 

 

64,824

 

Other current assets

 

 

16,608

 

 

 

27,125

 

Total current assets

 

 

200,230

 

 

 

260,262

 

Investments

 

 

38,135

 

 

 

33,724

 

Restricted cash and cash equivalents

 

 

1,171

 

 

 

1,165

 

Property, plant and mine development, net

 

 

2,657,995

 

 

 

2,666,250

 

Operating lease right-of-use assets

 

 

8,302

 

 

 

8,349

 

Deferred tax assets

 

 

 

 

 

2,883

 

Other non-current assets

 

 

33,931

 

 

 

38,471

 

Total assets

 

$

2,939,764

 

 

$

3,011,104

 

LIABILITIES

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

$

80,732

 

 

$

81,599

 

Accrued payroll and related benefits

 

 

25,938

 

 

 

28,240

 

Accrued taxes

 

 

2,474

 

 

 

3,501

 

Finance leases

 

 

7,874

 

 

 

9,752

 

Accrued reclamation and closure costs

 

 

10,049

 

 

 

9,660

 

Accrued interest

 

 

14,368

 

 

 

14,405

 

Other current liabilities

 

 

14,090

 

 

 

10,303

 

Total current liabilities

 

 

155,525

 

 

 

157,460

 

Accrued reclamation and closure costs

 

 

109,777

 

 

 

110,797

 

Long-term debt including finance leases

 

 

582,577

 

 

 

653,063

 

Deferred tax liability

 

 

100,732

 

 

 

104,835

 

Other non-current liabilities

 

 

11,088

 

 

 

16,845

 

Total liabilities

 

 

959,699

 

 

 

1,043,000

 

Commitments and contingencies (Notes 4, 7, 8, and 11)

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock, 5,000,000 shares authorized:

 

 

 

 

 

 

Series B preferred stock, $0.25 par value, 157,776 shares issued and outstanding, liquidation preference — $7,889

 

 

39

 

 

 

39

 

Common stock, $0.25 par value, authorized 750,000,000 shares; issued June 30, 2024 — 627,317,818 shares and December 31, 2023 — 624,647,379 shares

 

 

156,745

 

 

 

156,076

 

Capital surplus

 

 

2,354,004

 

 

 

2,343,747

 

Accumulated deficit

 

 

(489,738

)

 

 

(503,861

)

Accumulated other comprehensive income (loss), net

 

 

(6,054

)

 

 

5,837

 

Less treasury stock, at cost; June 30, 2024 — 8,813,127 and December 31, 2023 — 8,535,161 shares issued and held in treasury

 

 

(34,931

)

 

 

(33,734

)

Total stockholders’ equity

 

 

1,980,065

 

 

 

1,968,104

 

Total liabilities and stockholders’ equity

 

$

2,939,764

 

 

$

3,011,104

 

 

The accompanying notes are an integral part of the interim condensed consolidated financial statements.

5


 

Hecla Mining Company and Subsidiaries

 

Condensed Consolidated Statements of Changes in Stockholders’ Equity (Unaudited)

(Dollars are in thousands, except for share and per share amounts)

 

 

Three Months Ended June 30, 2024

 

 

Series B
Preferred
Stock

 

Common
Stock

 

Capital Surplus

 

Accumulated
Deficit

 

Accumulated
Other
Comprehensive Income (Loss), net

 

Treasury
Stock

 

Total

Balances, April 1, 2024

 

$39

 

$156,447

 

$2,350,249

 

$(513,608)

 

$434

 

$(34,931)

 

$1,958,630

Net income

 

 

 

 

27,870

 

 

 

27,870

Stock-based compensation expense

 

 

 

2,157

 

 

 

 

2,157

Incentive compensation units distributed (817,321 shares)

 

 

205

 

(205)

 

 

 

 

Common stock issued as compensation to interim CEO (10,831 shares)

 

 

 

3

 

52

 

 

 

 

55

Common stock issued to directors (145,687 shares)

 

 

37

 

733

 

 

 

 

770

Common stock ($0.00625 per share) and Series B Preferred Stock ($0.875 per share) dividends declared

 

 

 

 

(4,000)

 

 

 

(4,000)

Common stock issued for 401(k) match (212,854 shares)

 

 

53

 

1,018

 

 

 

 

1,071

Other comprehensive loss

 

 

 

 

 

(6,488)

 

 

(6,488)

Balances, June 30, 2024

 

$39

 

$156,745

 

$2,354,004

 

$(489,738)

 

$(6,054)

 

$(34,931)

 

$1,980,065

 

 

 

Three Months Ended June 30, 2023

 

 

Series B
Preferred
Stock

 

Common
Stock

 

Capital Surplus

 

Accumulated
Deficit

 

Accumulated
Other
Comprehensive Income (Loss), net

 

Treasury
Stock

 

Total

Balances, April 1, 2023

 

$39

 

$152,536

 

$2,273,793

 

$(410,995)

 

$8,964

 

$(32,180)

 

$1,992,157

Net loss

 

 

 

 

(15,694)

 

 

 

(15,694)

Stock-based compensation expense

 

 

 

1,498

 

 

 

 

1,498

Common stock ($0.00625 per share) and Series B Preferred Stock ($0.875 per share) dividends declared

 

 

 

 

(3,917)

 

 

 

(3,917)

Common stock issued for 401(k) match (174,514 shares)

 

 

43

 

1,068

 

 

 

 

1,111

Common stock issued as incentive compensation (936,845 shares)

 

 

234

 

(234)

 

 

 

(1,554)

 

(1,554)

Common stock issued under ATM Program (2,080,060 shares)

 

 

521

 

13,482

 

 

 

 

14,003

Other comprehensive income

 

 

 

 

 

5,232

 

 

5,232

Balances, June 30, 2023

 

$39

 

$153,334

 

$2,289,607

 

$(430,606)

 

$14,196

 

$(33,734)

 

$1,992,836

 

 

 

Six Months Ended June 30, 2024

 

 

Series B
Preferred
Stock

 

Common
Stock

 

Capital Surplus

 

Accumulated
Deficit

 

Accumulated
Other
Comprehensive Income (Loss), net

 

Treasury
Stock

 

Total

Balances, January 1, 2024

 

$39

 

$156,076

 

$2,343,747

 

$(503,861)

 

$5,837

 

$(33,734)

 

$1,968,104

Net income

 

 

 

 

22,117

 

 

 

22,117

Stock-based compensation expense

 

 

 

3,321

 

 

 

 

3,321

Incentive compensation units distributed (1,776,936 shares)

 

 

445

 

2,910

 

 

 

(1,197)

 

2,158

Common stock issued as compensation to interim CEO (10,831 shares)

 

 

 

3

 

52

 

 

 

 

55

Common stock issued to directors (145,687 shares)

 

 

37

 

733

 

 

 

 

770

Common stock ($0.0125 per share) and Series B Preferred Stock ($1.75 per share) dividends declared

 

 

 

 

(7,994)

 

 

 

(7,994)

Common stock issued under ATM program (248,561 shares)

 

 

62

 

1,041

 

 

 

 

1,103

Common stock issued for 401(k) match (488,424 shares)

 

 

122

 

2,200

 

 

 

 

2,322

Other comprehensive loss

 

 

 

 

 

(11,891)

 

 

(11,891)

Balances, June 30, 2024

 

$39

 

$156,745

 

$2,354,004

 

$(489,738)

 

$(6,054)

 

$(34,931)

 

$1,980,065

 

6


 

 

 

Six Months Ended June 30, 2023

 

 

Series B
Preferred
Stock

 

Common
Stock

 

Capital Surplus

 

Accumulated
Deficit

 

Accumulated
Other
Comprehensive Income (Loss), net

 

Treasury
Stock

 

Total

Balances, January 1, 2023

 

$39

 

$151,819

 

$2,260,290

 

$(403,931)

 

$2,448

 

$(31,698)

 

$1,978,967

Net loss

 

 

 

 

(18,867)

 

 

 

(18,867)

Stock-based compensation expense

 

 

 

2,688

 

 

 

 

2,688

Incentive compensation units distributed (1,435,193 shares)

 

 

359

 

(359)

 

 

 

(2,036)

 

(2,036)

Common stock ($0.0125 per share) and Series B Preferred Stock ($1.75 per share) dividends declared

 

 

 

 

(7,808)

 

 

 

(7,808)

Common stock issued under ATM program (4,253,334 shares)

 

 

1,063

 

24,825

 

 

 

 

25,888

Common stock issued for 401(k) match (374,137 shares)

 

 

93

 

2,163

 

 

 

 

2,256

Other comprehensive income

 

 

 

 

 

11,748

 

 

11,748

Balances, June 30, 2023

 

$39

 

$153,334

 

$2,289,607

 

$(430,606)

 

$14,196

 

$(33,734)

 

$1,992,836

The accompanying notes are an integral part of the interim condensed consolidated financial statements.

7


 

Note 1. Basis of Preparation of Financial Statements

 

The accompanying unaudited interim condensed consolidated financial statements of Hecla Mining Company and its subsidiaries (collectively, “Hecla,” “the Company,” “we,” “our,” or “us,” except where the context requires otherwise) have been prepared in accordance with the instructions to Form 10-Q and do not include all information and disclosures required annually by accounting principles generally accepted in the United States of America (“GAAP”). Therefore, this information should be read in conjunction with the Company’s consolidated financial statements and notes contained in our annual report for the year ended December 31, 2023, which were revised to conform with current year financial statement changes as described in Note 2 "Business Segments and Sales of Products", and are included in Exhibit 99.1 to the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission on May 20, 2024. The consolidated December 31, 2023 balance sheet data was derived from our audited consolidated financial statements. The information furnished herein reflects all adjustments that are, in the opinion of management, necessary for a fair statement of the results for the interim periods reported. All such adjustments are, in the opinion of management, of a normal recurring nature. Operating results for the three and six months ended June 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024.

 

Note 2. Business Segments and Sales of Products

 

We discover, acquire and develop mines and other mineral interests and produce and market (i) concentrates containing silver, gold, lead and zinc, (ii) carbon material containing silver and gold, and (iii) doré containing silver and gold. We are currently organized and managed in four segments: Greens Creek, Lucky Friday, Keno Hill and Casa Berardi.

Effective January 2024 we revised our internal reporting provided to our Chief Operating Decision Maker to no longer include any financial performance information for our Nevada Operations, reflecting the current status of the Nevada Operations being on care and maintenance. General corporate activities not associated with operating mines and their various exploration activities, as well as idle properties and environmental remediation services in the Yukon, Canada, and the previously separately reported Nevada Operations are presented as “Other.” The presentation of the prior period information disclosed below has been revised to reflect this change.

 

The following tables present information about our reportable segments sales for the three and six months ended June 30, 2024 and 2023 (in thousands):

 

 

Three Months Ended
June 30,

 

 

Six Months Ended
June 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Total sales to external customers:

 

 

 

 

 

 

 

 

 

 

 

 

Greens Creek

 

$

95,659

 

 

$

95,891

 

 

$

192,969

 

 

$

194,502

 

Lucky Friday

 

 

59,071

 

 

 

42,648

 

 

 

94,411

 

 

 

91,758

 

Keno Hill

 

 

28,950

 

 

 

1,581

 

 

 

39,797

 

 

 

1,581

 

Casa Berardi

 

 

58,623

 

 

 

36,946

 

 

 

100,207

 

 

 

87,944

 

Other

 

 

3,354

 

 

 

1,065

 

 

 

7,801

 

 

 

1,846

 

 

 

$

245,657

 

 

$

178,131

 

 

$

435,185

 

 

$

377,631

 

 

 

 

 

 

 

 

 

Income (loss) from operations:

 

 

 

 

 

 

 

 

 

 

 

 

Greens Creek

 

$

36,189

 

 

$

30,414

 

 

$

62,405

 

 

$

61,655

 

Lucky Friday

 

 

39,312

 

 

 

10,526

 

 

 

62,265

 

 

 

25,096

 

Keno Hill

 

 

(3,708

)

 

 

(9,920

)

 

 

(12,793

)

 

 

(16,683

)

Casa Berardi

 

 

(9,717

)

 

 

(9,366

)

 

 

(27,712

)

 

 

(23,059

)

Other

 

 

(21,476

)

 

 

(16,843

)

 

 

(38,501

)

 

 

(36,645

)

 

 

$

40,600

 

 

$

4,811

 

 

$

45,664

 

 

$

10,364

 

               Reconciliation of income from operations to income (loss)
               before income and mining taxes:

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations:

 

$

40,600

 

 

$

4,811

 

 

$

45,664

 

 

$

10,364

 

Adjustments all attributable to the Other segment

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(12,505

)

 

 

(10,311

)

 

 

(25,149

)

 

 

(20,476

)

Fair value adjustments, net

 

 

5,002

 

 

 

(2,558

)

 

 

3,150

 

 

 

623

 

Net foreign exchange gain (loss)

 

 

2,673

 

 

 

(3,850

)

 

 

6,655

 

 

 

(3,742

)

Other income

 

 

1,180

 

 

 

1,376

 

 

 

2,692

 

 

 

2,768

 

Income (loss) before income and mining taxes

 

$

36,950

 

 

$

(10,532

)

 

$

33,012

 

 

$

(10,463

)

 

8


 

Other sales for the three and six months ended June 30, 2024 and 2023 is comprised of revenue from our environmental remediation services subsidiary in the Yukon for both years presented and Nevada Operations metal sales in 2023. During the three and six months ended June 30, 2024, Keno Hill sold $1.1 million and $1.4 million of zinc concentrate to Greens Creek.

 

Lucky Friday's income from operations for the three and six months ended June 30, 2024 includes $17.8 million and $35.2 million, respectively, of business interruption insurance proceeds received during the respective periods related to the fire which suspended Lucky Friday's operations from August 2023 through January 8, 2024. The insurance proceeds received are recorded as part of "Other operating income, net" in our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss).

 

Sales by metal for the three and six months ended June 30, 2024 and 2023 were as follows (in thousands):

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2024

 

 

2023

 

 

2024