Note 2 - Business Segments and Sales of Products

6 Months Ended

Jun. 30, 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 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	)

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			2023
Silver	$	112,692		$	79,489		$	198,925		$	161,022
Gold		82,469			62,924			149,884			138,010
Lead		23,928			21,657			43,411			47,059
Zinc		32,496			25,903			57,460			58,846
Less: Smelter and refining charges		(9,282	)		(12,220	)		(22,296	)		(28,193	)
Total metal sales		242,303			177,753			427,384			376,744
Environmental remediation services		3,354			378			7,801			887
Total sales	$	245,657		$	178,131		$	435,185		$	377,631

Sales of metals for the three and six months ended June 30, 2024 include net losses of $12.5 million and $9.4 million, respectively, on financially-settled forward contracts for silver, gold, lead and zinc and for the three and six months ended June 30, 2023 include net gains of $8.2 million and $9.1 million, respectively, on such contracts. See Note 8 for more information.

The following table presents total assets by reportable segment as of June 30, 2024 and December 31, 2023 (in thousands):

	June 30, 2024		December 31, 2023
Total assets:
Greens Creek	$	576,058	$	569,369
Lucky Friday		573,484		578,110
Keno Hill		386,141		362,986
Casa Berardi		655,536		683,035
Other		748,545		817,604
	$	2,939,764	$	3,011,104