HECLA MINING CODE
For the period ended Sep 30, 2024. Filed Nov 7, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 7, 2024
HL$14.74+2.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-07.
0000950170-24-092450
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsOverviewConsolidated Results of OperationsFinancial Liquidity and Capital ResourcesContractual Obligations, Contingent Liabilities and CommitmentsCritical Accounting EstimatesOff-Balance Sheet ArrangementsGuarantor SubsidiariesCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-07.
0000950170-24-123004
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsOverviewConsolidated Results of OperationsFinancial Liquidity and Capital ResourcesContractual Obligations, Contingent Liabilities and CommitmentsCritical Accounting EstimatesOff-Balance Sheet ArrangementsGuarantor SubsidiariesThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 155 previous paragraphs and 166 current paragraphs.
67 unchanged; 79 reworded; 20 added; 7 removed; 2 previous and 0 current paragraphs rearranged.
Tables are not compared: 38 previous and 38 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (20)
Current report
Raised $57.3 million in equity sales under our ATM program which were utilized to make $49.0 million in net repayments on our outstanding revolving credit facility balance.
Current report
Copper became a payable metal for Greens Creek, recording $0.4 million of copper sales.
Current report
Generated sales of $680.3 million and net income applicable to common stockholders of $23.5 million.
Current report
Raised $58.4 million in equity sales under our ATM program which were utilized as part of $115.0 million in net repayments on our outstanding revolving credit facility balance.
Current report
Completion of operational commissioning of each major mine and mill component;
Current report
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;
Current report
Silver recoveries are at or near expected steady-state production levels;
Current report
All major capital expenditures have been completed; and
Current report
A significant portion of available funding is directed towards operating activities.
Current report
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.
Current report
A $14.5 million write down of property, plant and equipment which had no salvage value. 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.
Current report
A $14.5 million write down of property, plant and equipment which had no salvage value. 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.
Current report
Production during the three and nine months ended September 30, 2024, declined primarily due to a combination of unplanned semi-antogenous grinding ("SAG") mill maintenance and lower grade. Throughput for the quarter averaged 2,314 tons per day, a decline of 7% as various mill maintenance projects were completed during the quarter, including SAG liners inspection, bolts retorquing, as well as work completed during a 7-day unscheduled maintenance event, of which 5 were in September. The mill restarted during early October and we expect similar production levels in the fourth quarter as during the quarter ended September 30, 2024.
Current report
For both the three and nine month periods ended September 30, 2023, $12.0 million of site specific suspension costs were included within Ramp-up and suspension costs.
Current report
The increase in Cash Cost, After By-product Credits, per Silver Ounce and AISC, After By-product Credits, per Silver Ounce for the three months ended September 30, 2024, compared to the same period in 2023 was primarily due to higher production costs, partly offset by higher silver production in the current quarter as mining operations were suspended in August 2023. AISC, After By-product Credits, per Silver Ounce was also negatively impacted higher sustaining capital.
Current report
The increase in Cash Cost, After By-product Credits, per Silver Ounce and AISC, After By-product Credits, per Silver Ounce for the nine months ended September 30, 2024, compared to the same period in 2023 was primarily due to higher production costs, partly offset by higher silver production in the current year as mining operations were suspended in August 2023 and resumed on January 9, 2024.
Current report
Gross profit increased by $13.9 million to $4.0 million for the three months ended September 30, 2024, compared to a gross loss of $9.9 million in the same period in 2023. The increase in gross profit is primarily related to higher realized prices, partly offset by lower gold ounces sold, and lower depreciation costs in the current quarter due to the west underground mine being fully depreciated during the first half of the year. Capital additions increased by $2.4 million during the quarter, compared to the same period in 2023, primarily related to a tailings dam raise.
Current report
Although Casa Berardi generated gross profit during the third quarter of 2024, it has generated gross losses during the previous eight quarters. This lack of profitability, the expected hiatus in future production discussed above, and the uncertainty surrounding permitting and timing of construction of the new open pits, has caused us to undertake a review of how Casa Berardi fits into the Company’s future strategy. 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.
Current report
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. 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 paragraphs (7)
Previous report
Lucky Friday produced 1.3 million ounces of silver, reflecting a full quarter's production following resumption of production on January 9, 2024.
Previous report
Generated sales of $245.7 million and generated net income applicable to common stockholders of $27.7 million.
Previous report
Interest expense increased by $2.2 million reflecting higher amounts drawn on our revolving credit facility.
Previous report
The decrease in Cash Cost, After By-product Credits, per Silver Ounce and AISC, After By-product Credits, per Silver Ounce for the three months ended June 30, 2024, compared to the same period in 2023 was primarily due to a combination of higher production and higher by-product credits, primarily resulting from an increase in base metals prices during the quarter.
Previous report
Gross loss increased by $7.8 million to $25.4 million for the six months ended June 30, 2024, compared to a gross loss of $17.6 million in the same period in 2023. The increase in gross loss includes $6.3 million in product inventory net realizable value write downs attributable to higher depreciation, depletion and amortization expense, reflecting the accelerated amortization of the west underground mine, the purchase of mobile equipment fleet in June and early July 2023 and the cessation of capitalization of any underground mine development costs effective July 2023. As mentioned above, the prior period contained $2.2 million of costs classified as suspension costs in relation to the mine's suspension of activities caused by road closures from the Quebec forest fires. Capital additions decreased by $12.2 million during the six-month period ended June 30, 2024, compared to the same period in 2023, primarily related to the cessation of capitalization of underground development. The majority of capital additions for the current year have related to a tailings dam raise and paste backfill.
Previous report
The increase in Cash Cost After By-product Credits, per Gold Ounce, for the three months ended June 30, 2024, compared to the same period in 2023 was primarily due to higher mining and milling costs, partly offset by higher gold production. Lower AISC, After By-product Credits, per Gold Ounce reflected the continuing positive impact of no underground development and the prior period containing machinery and equipment expenditures related to surface operations.
Reworded paragraphs (79)
Previous wording
Established in 1891, we are the oldest operating precious metals mining company in the United States. We are also the largest silver producer in the United States, producing over 45% of the U.S. silver production at our Greens Creek and Lucky Friday operations. We also produce gold at our Casa Berardi and Greens Creek operations. In addition, we are developing the Keno Hill mine in the Yukon Territory, Canada which we acquired on September 7, 2022 and began ramp-up during the second quarter of 2023. 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 exploration interests are located in the United States, Canada and Mexico. Our operating and strategic framework is based on expanding our production and locating and developing new resource potential in a safe and responsible manner.
Current wording
Established in 1891, we are the oldest operating precious metals mining company in the United States. We are also the largest silver producer in the United States and Canada, producing over 45% of the U.S. silver production at our Greens Creek and Lucky Friday operations. We also produce gold at our Casa Berardi and Greens Creek operations. In addition, we are developing the Keno Hill mine in the Yukon Territory, Canada which we acquired on September 7, 2022 and began ramp-up during the second quarter of 2023. 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 exploration interests are located in the United States, Canada and Mexico. Our operating and strategic framework is based on expanding our production and locating and developing new resource potential in a safe and responsible manner.
Previous wording
Produced 4.5 million ounces of silver, a 16% increase over the prior year's comparable quarter and 37,324 ounces of gold. See Consolidated Results of Operations below for information on total cost of sales, as well as cash costs and all-in sustaining costs, each after by-product credits, per silver and gold ounce for the three-month periods ended June 30, 2024 and 2023.
Current wording
Produced 3.6 million ounces of silver, a 3% increase over the prior year's comparable quarter and 32,280 ounces of gold. See Consolidated Results of Operations below for information on total cost of sales, as well as cash costs and all-in sustaining costs, each after by-product credits, per silver and gold ounce for the three-month periods ended September 30, 2024 and 2023.
Previous wording
Generated sales of $435.2 million and net income applicable to common stockholders of $21.8 million.
Current wording
Generated sales of $245.1 million and net income applicable to common stockholders of $1.6 million.
Previous wording
Invested in our operations by making capital expenditures of approximately $50.4 million, including $11.7 million at Greens Creek, $10.8 million at Lucky Friday, $12.4 million at Casa Berardi and $14.5 million at Keno Hill.
Current wording
Invested in our operations by making capital expenditures of approximately $55.7 million, including $11.5 million at Greens Creek, $11.2 million at Lucky Friday, $18.6 million at Casa Berardi and $14.4 million at Keno Hill.
Previous wording
Collected $17.8 million in insurance proceeds related to the Lucky Friday fire.
Current wording
Collected $14.8 million in insurance proceeds related to the Lucky Friday fire.
Previous wording
Returned $4.0 million to our stockholders through dividend payments.
Current wording
Returned $8.6 million to our common stockholders through dividend payments.
Previous wording
Spent $6.7 million on exploration and pre-development activities.
Current wording
Spent $10.6 million on exploration and pre-development activities.
Previous wording
Produced 8.7 million ounces of silver, a 10% increase over the prior year's comparable period and 73,916 ounces of gold. See Consolidated Results of Operations below for information on total cost of sales, as well as cash costs and all-in sustaining costs, each after by-product credits, per silver and gold ounce for the three-month periods ended June 30, 2024 and 2023.
Current wording
Produced 12.3 million ounces of silver, a 8% increase over the prior year's comparable period and 106,196 ounces of gold. See Consolidated Results of Operations below for information on total cost of sales, as well as cash costs and all-in sustaining costs, each after by-product credits, per silver and gold ounce for the nine-month periods ended September 30, 2024 and 2023.
Previous wording
Keno Hill produced 0.9 million ounces of silver as ramp-up of production continued during the quarter.
Current wording
Keno Hill produced 2.1 million ounces of silver as ramp-up of production continued with an average throughput of 314 tons per day, and stockpiled ore inventory of approximately 290,700 ounces.
Previous wording
Invested in our operations by making capital expenditures of approximately $98.0 million, including $20.5 million at Greens Creek, $25.8 million at Lucky Friday, $25.7 million at Casa Berardi and $24.9 million at Keno Hill.
Current wording
Invested in our operations by making capital expenditures of approximately $153.7 million, including $32.0 million at Greens Creek, $37.0 million at Lucky Friday, $44.3 million at Casa Berardi and $39.3 million at Keno Hill.
Previous wording
Collected $35.2 million in insurance proceeds related to the Lucky Friday fire.
Current wording
Collected $50.0 million in insurance proceeds related to the Lucky Friday fire.
Previous wording
Returned $8.0 million to our stockholders through dividend payments.
Current wording
Returned $16.3 million to our common stockholders through dividend payments.
Previous wording
Spent $11.0 million on exploration and pre-development activities.
Current wording
Spent $21.6 million on exploration and pre-development activities.
Previous wording
Our financial results vary as a result of fluctuations in market prices primarily for silver and gold and, to a lesser extent, zinc and lead. World market prices for these commodities have fluctuated historically and are affected by numerous factors beyond our control. We believe that the outlook for precious metals fundamentals in the medium- and long-term is favorable due to macro-economic factors such as interest rate expectations, geopolitical uncertainty and global growth expectations, which have resulted in significant volatility in the financial and commodities markets, including the precious metals market. See Item 1A. “Risk Factors” contained in Part I of our annual report on Form 10-K for the year ended December 31, 2023 ("2023 Form 10-K"), for further discussion. Because we cannot control the price of our products, the key measures that management focuses on in operating our business are production volumes, payable sales volumes, Cash Cost, After By-product Credits, per Ounce (non-GAAP) and All-In Sustaining Cost, After By-product Credits, per Ounce (“AISC”) (non-GAAP), operating cash flows, capital expenditures, free cash flow and adjusted EBITDA. The average realized prices for all metals sold by us continued to exhibit significant volatility period over period. We have also experienced significant cost inflation across our operations, principally associated with higher energy prices, increased costs for other consumables such as reagents, explosives and steel, and higher labor and contractor costs.
Current wording
Our financial results vary as a result of fluctuations in market prices primarily for silver and gold and, to a lesser extent, zinc and lead. World market prices for these commodities have fluctuated historically and are affected by numerous factors beyond our control. We believe that the outlook for precious metals fundamentals in the medium- and long-term is favorable due to macro-economic factors such as lower interest rate expectations, geopolitical uncertainty and global growth expectations, which have resulted in significant volatility in the financial and commodities markets, including the precious metals market. See Item 1A. “Risk Factors” contained in Part I of our annual report on Form 10-K for the year ended December 31, 2023 ("2023 Form 10-K"), for further discussion. Because we cannot control the price of our products, the key measures that management focuses on in operating our business are production volumes, payable sales volumes, Cash Cost, After By-product Credits, per Ounce (non-GAAP) and All-In Sustaining Cost, After By-product Credits, per Ounce (“AISC”) (non-GAAP), operating cash flows, capital expenditures, free cash flow and adjusted EBITDA. The average realized prices for all metals sold by us continued to exhibit significant volatility during the period. We have also experienced significant cost inflation across our operations, principally associated with higher energy prices, increased costs for other consumables such as reagents, explosives and steel, and higher labor and contractor costs.
Previous wording
Total sales for the three and six months ended June 30, 2024 and 2023 were as follows:
Current wording
Total sales for the three and nine months ended September 30, 2024 and 2023 were as follows:
Previous wording
Environmental remediation services revenue is generated by performing remediation work in the historical Yukon Territory mining district on behalf of the Canadian government. The scope and estimated cost of all work is agreed to in advance by the Canadian government, and the expenses incurred are essentially passed through to the government for reimbursement with minimal margin generated by the Company in performing this work.
Current wording
Environmental remediation services revenue is generated by performing remediation work in the historical Yukon Territory mining district on behalf of the Canadian government. The scope and estimated cost of all work is agreed to in advance by the Canadian government, and the expenses incurred are essentially passed through to the government for reimbursement with minimal margin generated by our subsidiary in performing this work.
Previous wording
Total metal sales for the three and six months ended June 30, 2024 and 2023, and the approximate variances attributed to differences in metals prices, sales volumes and smelter terms, were as follows:
Current wording
Total metal sales for the three and nine months ended September 30, 2024 and 2023, and the approximate variances attributed to differences in metals prices, sales volumes and smelter terms, were as follows:
Previous wording
The fluctuations in sales for the three and six months ended June 30, 2024 compared to the same period in 2023 were primarily due to the following two reasons:
Current wording
The fluctuations in sales for the three and nine months ended September 30, 2024 compared to the same periods in 2023 were primarily due to the following two reasons:
Previous wording
Higher average realized prices for precious and base metals during the three and six months ended June 30, 2024, compared to the same periods in 2023. The table below summarizes average spot prices and our average realized prices for the commodities we sell:
Current wording
Higher average realized prices for precious metals and lower realized base metals prices during the three and nine months ended September 30, 2024, compared to the same periods in 2023. The table below summarizes average spot prices and our average realized prices for the commodities we sell:
Previous wording
Average realized prices typically 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. Due to the time elapsed between shipment of concentrates and final settlement with the 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. We recorded net positive price adjustments to provisional settlements of $11.0 million and $14.5 million for the three and six months ended June 30, 2024, respectively, and $2.1 million and $4.2 million for the three and six months ended June 30, 2023, respectively. The price adjustments related to silver, gold, zinc and lead contained in our concentrate shipments were partially offset by gains and losses on forward contracts for those metals. See Note 8 of Notes to Condensed Consolidated Financial Statements (Unaudited)for more information. The gains and losses on these contracts are included in revenues and impact the realized prices for silver, gold, lead and zinc. 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 concentrate, doré and carbon material shipped during the period.
Current wording
Average realized prices typically 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. Due to the time elapsed between shipment of concentrates and final settlement with the 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. We recorded net positive price adjustments to provisional settlements of $5.0 million and $19.5 million for the three and nine months ended September 30, 2024, respectively, and $8.1 million and $12.3 million for the three and nine months ended September 30, 2023, respectively. The price adjustments related to silver, gold, zinc and lead contained in our concentrate shipments were partially offset by gains and losses on forward contracts for those metals. See Note 8 of Notes to Condensed Consolidated Financial Statements (Unaudited)for more information. The gains and losses on these contracts are included in revenues and impact the realized prices for silver, gold, lead and zinc. 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 concentrate, doré and carbon material shipped during the period.
Previous wording
Higher quantities of silver sold during the three and six months ended June 30, 2024, compared to the same periods in 2023, primarily due to higher and more consistent throughput at Keno Hill, as the site has continued ramp-up of production during the year. See The Greens Creek Segment, The Lucky Friday Segment, The Keno Hill Segment, and Casa Berardi Segment sections below for more information on metal production and sales volumes at each of our operating segments. Total metals production and sales volumes for each period are shown in the following table:
Current wording
Higher quantities of silver sold during the three and nine months ended September 30, 2024, compared to the same periods in 2023, primarily due to a full third quarter of Lucky Friday sales in 2024 compared to 2023 when production was suspended in August 2023 following a fire in the secondary egress that suspended operations for the remainder of 2023. See The Greens Creek Segment, The Lucky Friday Segment, The Keno Hill Segment, and Casa Berardi Segment sections below for more information on metal production and sales volumes at each of our operating segments. Total metals production and sales volumes for each period are shown in the following table:
Previous wording
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 the three and six months ended June 30, 2024 and 2023 were as follows (in thousands, except for Cash Cost and AISC):
Current wording
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 the three and nine months ended September 30, 2024 and 2023 were as follows (in thousands, except for Cash Cost and AISC):
Previous wording
For the three and six months ended June 30, 2024, Other includes sales of $3.4 million and $7.8 million, respectively, and total cost of sales of $3.6 million and $7.5 million, from our environmental remediation services in the Yukon. For the three and six months ended June 30, 2023, Other includes sales and cost of sales of $1.1 million for the three months ended June 30, 2023 and sales and cost of sales of $1.8 million for the six months ended June 30, 2023, related to our environmental remediation services business and Nevada operations.
Current wording
For the three and nine months ended September 30, 2024, Other includes sales of $7.3 million and $15.1 million, respectively, and total cost of sales of $6.8 million and $14.3 million, for the three and nine months ended September 30, 2024, respectively, from our environmental remediation services in the Yukon. For the three and nine months ended September 30, 2023, Other includes sales of $1.1 million and $3.0 million for the three and nine months ended September 30, 2023, respectively, and cost of sales of $0.9 million and $2.7 million, respectively, for the three and nine months ended September 30, 2023, related to our environmental remediation services business and Nevada operations.
Previous wording
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. In addition, we have not consistently received sufficient revenue from any single by-product metal to warrant classification of such as a co-product.
Current wording
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. In addition, we have not consistently received sufficient revenue from any single by-product metal to warrant classification of such as a co-product.
Previous wording
We periodically review our revenues to ensure that reporting of primary products and by-products is appropriate. 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.
Current wording
We periodically review our revenues to ensure that reporting of primary products and by-products is appropriate. 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 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. 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, and accordingly it is excluded from our consolidated Cash Cost, After By-product Credits, per Silver Ounce and AISC, After By-product Credits, per Silver Ounce. We define an operation as being in commercial production upon achievement of the following criteria:
Previous wording
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 there. In addition, we do not receive sufficient revenue from silver at the Casa Berardi to warrant classification of such as a co-product. 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.
Current wording
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 there. In addition, we do not receive sufficient revenue from silver at the Casa Berardi mine to warrant classification of such as a co-product. 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.
Previous wording
We reported a net income applicable to common stockholders of $27.7 million for the three months ended June 30, 2024, compared to a net loss applicable to common stockholders of $15.8 million in the comparable period in 2023. The following were the significant drivers of changes in net income applicable to common stockholders compared to 2023:
Current wording
We reported net income applicable to common stockholders of $1.6 million for the three months ended September 30, 2024, compared to a net loss applicable to common stockholders of $22.6 million in the comparable period in 2023. The following were the significant drivers of the change:
Previous wording
Consolidated gross profit increased by $13.8 million. See The Greens Creek Segment, The Lucky Friday Segment, The Keno Hill Segment, and The Casa Berardi Segment sections below for a discussion on the key drivers by operating unit.
Current wording
Consolidated gross profit increased by $25.8 million. See The Greens Creek Segment, The Lucky Friday Segment, The Keno Hill Segment, and The Casa Berardi Segment sections below for a discussion on the key drivers by operating unit.
Previous wording
Ramp-up and suspension costs decreased by $7.6 million as costs related to Keno Hill's ramp-up activities decreased by $4.9 million, in addition to the prior period containing costs related to the temporary suspension of operations at Casa Berardi for 20 days resulting from certain forest lands and access road closures due to forest fires.
Current wording
Ramp-up and suspension costs decreased by $7.3 million as the prior period included $12.0 million of suspension costs related to the temporary suspension of operations at Lucky Friday due to the underground fire, whereas the current period primarily contained costs related to Keno Hill's ramp-up activities and increased by $4.9 million over the comparable period in 2023.
Previous wording
Other operating income, net increased by $13.0 million primarily due to $17.8 million of insurance proceeds received during the quarter related to the Lucky Friday fire. Other operating income, net in the prior period included $5.9 million of insurance proceeds related to a coverage lawsuit.
Current wording
Other operating income, net increased by $15.4 million primarily due to $14.8 million of insurance proceeds received during the quarter related to the Lucky Friday fire.
Previous wording
Fair value adjustments, net increased by $2.5 million primarily due to $9.0 million of unrealized gains on our marketable equity securities portfolio compared to the comparable period in 2023. This was partially offset by unrealized losses on undesignated derivative contracts resulting from a $6.5 million negative movement when compared to the comparable period in 2023.
Current wording
Fair value adjustments, net increased by $10.1 million primarily due to $3.3 million in unrealized gains on our marketable equity securities portfolio in 2024 compared to an unrealized loss of $4.2 million in the comparable period in 2023 and an unrealized gain of $0.4 million on our undesignated derivative contracts compared to a $2.2 million unrealized loss when compared to the comparable period in 2023.
Previous wording
Net foreign exchange gain increased by $6.5 million to $2.7 million, compared to a loss of $3.9 million in the comparable period, reflecting the continued strengthening of the US dollar against the Canadian dollar, and related impact on the revaluation of our Canadian monetary assets and liabilities.
Current wording
Net foreign exchange loss increased by $7.4 million to a loss of $3.2 million, compared to a gain of $4.2 million in the comparable period, reflecting the strengthening of the Canadian dollar against the US dollar in 2024, compared to a devaluation in the comparable period in 2023 , and related impact on the revaluation of our Canadian monetary assets and liabilities.
Previous wording
Income and mining tax expense increased by $3.9 million due to higher taxable income generated by our US tax group.
Current wording
Income and mining tax expense increased by $13.0 million due to higher taxable income generated by our US tax group.
Previous wording
We reported a net income applicable to common stockholders of $21.8 million for the six months ended June 30, 2024, compared to a net loss applicable to common stockholders of $19.1 million in the comparable period in 2023. The following were the significant drivers of changes in net loss applicable to common stockholders compared to 2023:
Current wording
We reported net income applicable to common stockholders of $23.5 million for the nine months ended September 30, 2024, compared to a net loss applicable to common stockholders of $41.7 million in the comparable period in 2023. The following were the significant drivers of the change:
Previous wording
Ramp-up and suspension costs decreased by $10.8 million as costs related to Keno Hill's ramp-up activities decreased by $7.6 million, in addition to the prior period containing costs related to the temporary suspension of operations at Casa Berardi for 20 days resulting from certain forest lands and access road closures due to forest fires.
Current wording
Ramp-up and suspension costs decreased by $14.9 million as costs incurred in the prior period related to the temporary suspension of operations at Casa Berardi for 20 days resulting from certain forest lands and access road closures due to forest fires and the temporary suspension of operations at Lucky Friday due to an underground fire were not incurred in 2024.
Previous wording
Other operating income, net increased by $30.0 million primarily due to $35.2 million of insurance proceeds received during the period related to the Lucky Friday fire. Other operating income, net in the prior period included $5.9 million of insurance proceeds related to a coverage lawsuit.
Current wording
Other operating income, net increased by $45.4 million primarily due to $50.0 million of insurance proceeds received during the period related to the Lucky Friday fire. Other operating income, net in the prior period included $5.9 million of insurance proceeds related to a coverage lawsuit.
Previous wording
Fair value adjustments, net increased by $7.6 million primarily due to $11.2 million in unrealized gains on our marketable equity securities portfolio compared to the comparable period in 2023. This was partially offset by unrealized losses on undesignated derivative contracts resulting from a $3.6 million negative movement when compared to the comparable period in 2023.
Current wording
Fair value adjustments, net increased by $12.6 million primarily due to $9.0 million of unrealized gains on our marketable equity securities portfolio in 2024 compared to an unrealized loss of $7.6 million the comparable period in 2023. This was partially offset by unrealized losses on undesignated derivative contracts of $2.1 million in 2024 compared to an unrealized gain of $1.8 million in the comparable period in 2023.
Previous wording
Net foreign exchange gain increased by $10.4 million to $6.7 million reflecting the continued strengthening of the US dollar against the Canadian dollar, and related impact on the revaluation of our Canadian monetary assets and liabilities.
Current wording
Net foreign exchange gain increased by $3.0 million to $3.4 million reflecting the continued strengthening of the US dollar against the Canadian dollar, and related impact on the revaluation of our Canadian monetary assets and liabilities.
Previous wording
General and administrative expenses increased by $4.0 million, primarily related to non-recurring compensation costs associated with our former CEO's retirement.
Current wording
General and administrative expenses increased by $5.9 million, primarily related to non-recurring non-cash compensation costs associated with our former CEO's retirement in the second quarter and higher incentive compensation accruals.
Previous wording
Interest expense increased by $4.7 million as higher amounts were drawn on our revolving credit facility.
Current wording
Interest expense increased by $4.9 million as higher amounts were drawn on our revolving credit facility.
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Previous report — wording carried elsewhere
Keno Hill produced 1.5 million ounces of silver as ramp-up of production continued.
Previous report — wording carried elsewhere
General and administrative expenses increased by $3.1 million, primarily related to non-recurring compensation costs associated with our former CEO's retirement.