Note 2 - Business Segments and Sales of Products

3 Months Ended

Mar. 31, 2024

Disclosure Text Block [Abstract]

Business Segments, Sales of Products

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 months ended March 31, 2024 and 2023 (in thousands):

	Three Months Ended March 31,
	2024			2023
Total sales to external customers:
Greens Creek	$	97,310		$	98,611
Lucky Friday		35,340			49,110
Keno Hill		10,847			—
Casa Berardi		41,584			50,998
Other		4,447			781
	$	189,528		$	199,500
Income (loss) from operations:
Greens Creek	$	26,216		$	31,241
Lucky Friday		22,953			14,568
Keno Hill		(9,085	)		(6,763	)
Casa Berardi		(17,995	)		(13,693	)
Other		(17,025	)		(19,800	)
	$	5,064		$	5,553
Reconciliation of income from operations to (loss) income before income and mining taxes:
Income from operations:	$	5,064		$	5,553
Adjustments all attributable to the Other segment
Interest expense		(12,644	)		(10,165	)
Fair value adjustments, net		(1,852	)		3,181
Net foreign exchange gain		3,982			108
Other income		1,512			1,392
(Loss) income before income and mining taxes	$	(3,938	)	$	69

Other sales for the three months ended March 31, 2024 and 2023 is comprised of revenue from our environmental remediation services subsidiary in the Yukon for both periods presented and Nevada Operations metal sales in the prior period.

Lucky Friday's income from operations for the three months ended March 31, 2024, includes $17.4 million of business interruption insurance proceeds received during the quarter related to the fire which suspended Lucky Friday's operations from August 2023 through January 8, 2024.

Total sales to external customers for the three months ended March 31, 2024 and 2023 were as follows (in thousands):

	Three Months Ended March 31,
	2024			2023
Silver	$	86,233		$	81,532
Gold		67,415			75,087
Lead		19,483			25,402
Zinc		24,964			32,943
Less: Smelter and refining charges		(13,014	)		(15,973	)
Total metal sales		185,081			198,991
Environmental remediation services		4,447			509
Total sales	$	189,528		$	199,500

Sales of metals for the three months ended March 31, 2024 and 2023 include net gains of $3.1 million and $0.9 million, respectively, on financially-settled forward contracts for silver, gold, lead and zinc. See Note 8 for more information.

The following table presents total assets by reportable segment as of March 31, 2024 and December 31, 2023 (in thousands):

	March 31, 2024		December 31, 2023
Total assets:
Greens Creek	$	571,684	$	569,369
Lucky Friday		571,700		578,110
Keno Hill		374,630		362,986
Casa Berardi		669,626		683,035
Other		806,618		817,604
	$	2,994,258	$	3,011,104