Our current risk management policy provides that up to 75% of five years of our foreign currency, lead and zinc metals price and silver and gold price exposure may be covered under a derivatives program with certain other limitations. Our program also utilizes derivatives to manage price risk exposure created from when revenue is recognized from a shipment of concentrate until final settlement.

These instruments expose us to (i) credit risk in the form of non-performance by counterparties for contracts in which the contract price exceeds the spot price of the hedged commodity or foreign currency and (ii) price risk to the extent that the spot price or currency exchange rate exceeds the contract price for quantities of our production and/or forecasted costs covered under contract positions.

Our wholly-owned subsidiaries owning the Casa Berardi operation and Keno Hill operation are USD-functional entities which routinely incur expenses denominated in CAD. Such expenses expose us to exchange rate fluctuations between the USD and CAD. We have a program to manage our exposure to fluctuations in the USD exchange rate for these subsidiaries' future operating and capital costs denominated in CAD. The program related to forecasted cash operating costs at Casa Berardi and Keno Hill utilizes forward contracts to buy CAD, some of which are designated as cash flow hedges. As of December 31, 2024, we have a total of 378 forward contracts outstanding to buy a total of CAD $279.3 million having a notional amount of USD$206.6 million with CAD-to-USD exchange rates ranging between 1.2816 and 1.4223, with the following exposures from 2025-2026:

Net unrealized losses of approximately $8.0 million related to the effective portion of the hedges were included in accumulated other comprehensive income (loss) as of December 31, 2024. Unrealized gains and losses will be transferred from accumulated other comprehensive loss to current earnings as the underlying operating expenses are recognized. We estimate approximately $6.0 million in net unrealized losses included in accumulated other comprehensive income (loss) as of December 31, 2024 will be reclassified to current earnings in the next twelve months.

Net realized losses of approximately $3.8 million on contracts related to underlying expenses which have been recognized were transferred from accumulated other comprehensive loss and included in cost of sales and other direct production costs for the year ended December 31, 2024. Net unrealized losses of approximately $5.7 million related to contracts not designated as hedges and no net unrealized gains or losses related to ineffectiveness of the hedges were included in fair value adjustments, net on our consolidated statements of operations and comprehensive (loss) income for the year ended December 31, 2024.

Net realized losses of approximately $3.6 million on contracts related to underlying expenses which have been recognized were transferred from accumulated other comprehensive loss and included in cost of sales and other direct production costs for the year ended December 31, 2023. Net unrealized gains of approximately $1.2 million related to contracts not designated as hedges and no net unrealized gains or losses related to ineffectiveness of the hedges were included in fair value adjustments, net on our consolidated statements of operations and comprehensive (loss) income for the year ended December 31, 2023.

Net realized gains of approximately $0.8 million on contracts related to underlying expenses which have been recognized were transferred from accumulated other comprehensive loss and included in cost of sales and other direct production costs for the year ended December 31, 2022. Net unrealized gains of approximately $0.1 million related to contracts not designated as hedges and no net unrealized gains or losses related to ineffectiveness of the hedges were included in fair value adjustments, net on our consolidated statements of operations and comprehensive income (loss) for the year ended December 31, 2022.

We are currently using financially-settled forward contracts to manage the exposure to:

The following tables summarize the quantities of metals committed under forward sales contracts at December 31, 2024 and 2023:


December 31, 2024	Ounces/pounds under contract (in 000's)								Average price per ounce/pound
	Silver		Gold		Zinc		Lead		Silver		Gold		Zinc		Lead
	(ounces)		(ounces)		(pounds)		(pounds)		(ounces)		(ounces)		(pounds)		(pounds)
Contracts on provisional sales
2025 settlements		1,535		2		20,834		14,661	$	31.46	$	2,673	$	1.40	$	0.97
Contracts on forecasted sales
2025 settlements		—		—		59,194		47,840	N/A		N/A		$	1.39	$	0.99
2026 settlements		—		—		6,283		52,911	N/A		N/A		$	1.41	$	1.03


December 31, 2023	Ounces/pounds under contract (in 000's)								Average price per ounce/pound
	Silver		Gold		Zinc		Lead		Silver		Gold		Zinc		Lead
	(ounces)		(ounces)		(pounds)		(pounds)		(ounces)		(ounces)		(pounds)		(pounds)
Contracts on provisional sales
2024 settlements		735		3		441		15,542	$	24.40	$	2,045	$	1.51	$	1.00
Contracts on forecasted sales
2024 settlements		—		—		—		56,713	N/A		N/A		N/A		$	0.98
2025 settlements		—		—		—		49,273	N/A		N/A		N/A		$	0.98


	December 31, 2024						December 31, 2023
Balance sheet line item:	Contracts in an asset position		Contracts in a liability position		Net asset (liability)		Contracts in an asset position		Contracts in a liability position			Net asset (liability)
Other current assets	$	11.5	$	—	$	11.5	$	3.1	$	—		$	3.1
Other non-current assets		6.6		—		6.6		1.5		—			1.5
Current derivatives liability		—		—		—		—		(0.1	)		(0.1	)

Net realized and unrealized gains of approximately $13.4 million related to the effective portion of the contracts designated as hedges were included in accumulated other comprehensive loss as of December 31, 2024. Realized and unrealized gains and losses will be transferred from accumulated other comprehensive loss to current earnings as the underlying forecasted sales transaction is recognized. We estimate approximately $7.9 million in net realized and unrealized gains included in accumulated other comprehensive loss as of December 31, 2024 will be reclassified to current earnings in the next twelve months. The realized gains arose due to cash settlement of zinc and lead contracts in 2023 and zinc contracts in 2022 prior to maturity for cash proceeds of $8.5 million and $17.4 million, respectively.

We recognized a net gain of $1.3 million, including a $11.4 million gain transferred from accumulated other comprehensive income (loss), during 2024 on the contracts utilized to manage exposure to prices of metals in our concentrate shipments, which is included in sales. The net gain recognized on the contracts offsets loss related to price adjustments on our provisional concentrate sales, both of which resulted from changes to silver, gold, lead and zinc prices between the time of sale and final settlement.

We recognized a net gain of $19.7 million during 2023 on the contracts utilized to manage exposure to prices of metals in our concentrate shipments, which is included in sales. The net gain recognized on the contracts offsets loss related to price adjustments on our provisional concentrate sales, both of which resulted from changes to silver, gold, lead and zinc prices between the time of sale and final settlement.

We recognized a net loss of $5.8 million during 2022 on the contracts utilized to manage exposure to prices of metals in our concentrate shipments, which is included in sales of products. The net loss recognized on the contracts offsets gains related to price adjustments on our provisional concentrate sales, both of which resulted from changes to silver, gold, lead and zinc prices between the time of sale and final settlement.

Certain of our derivative contracts contain cross default provisions which provide that a default under our revolving credit agreement would cause a default under the derivative contract. As of December 31, 2024, we have not posted any collateral related to these contracts. The fair value of derivatives in a net liability position related to these arrangements was $10.2 million as of December 31, 2024, and includes accrued interest but excludes any adjustment for nonperformance risk. If we were in breach of any of these provisions at December 31, 2024, we could have been required to settle our obligations under the agreements at their termination value of $10.2 million.