Note 2 - Business Segments and Sales of Products

6 Months Ended

Jun. 30, 2026

Disclosure Text Block [Abstract]

Business Segments and 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, zinc, and copper, and (ii) doré containing silver and gold. We are currently organized and managed in three segments: Greens Creek, Lucky Friday, and Keno Hill.

We regularly review our segment reporting for alignment with our strategic goals and operational structure as well as for evaluation of business performance and the allocation of resources by our President and Chief Executive Officer, who has been identified as our Chief Operating Decision Maker ("CODM"). The CODM evaluates the performance for all of our reportable segments based on gross profit. For all segments, the CODM uses segment gross profit to assess segment performance and allocate resources for each segment predominantly in the annual budget and quarterly forecasting process. The CODM considers budget to actual variances on a monthly basis when making decisions about allocating capital and personnel to the segments. Significant segment expenses that drive the financial performance of our reportable segments are (i) salaries, wages and other benefits, (ii) contractors, (iii) materials and consumables, (iv) change in product inventory, and (v) other direct production costs. In further evaluating the operational performance of each segment, the CODM also considers the amount of metal production versus budget, and the grade of the metal processed.

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, are presented as “other.” The nature of the items that reconcile gross profit (loss) to income before income and mining taxes are not related to our reportable segments.

The tables below present information about our reportable segments for the three and six months ended June 30, 2026 and 2025 (in thousands):

Three months ended June 30, 2026	Greens Creek			Lucky Friday		Keno Hill			Total Reportable Segments			Other			Total
Metal sales	$	165,333		$	123,221	$	34,468		$	323,022		$	—		$	323,022
Environmental remediation services		—			—		—			—			10,829			10,829
Intersegment sales		—			—		2,234			2,234			—			2,234
Reconciliation of sales		165,333			123,221		36,702			325,256			10,829			336,085
Elimination of intersegment sales		—			—		(2,234	)		(2,234	)		—			(2,234	)
Total consolidated sales																333,851
Salaries, wages and other benefits		19,224			18,665		8,739			46,628			111			46,739
Contractors		2,717			4,082		4,018			10,817			10,651			21,468
Materials and consumables		26,722			10,575		7,957			45,254			(511	)		44,743
Product inventory change		(9,606	)		1,457		(490	)		(8,639	)		—			(8,639	)
Other direct production costs		10,854			191		1,912			12,957			15			12,972
Depreciation, depletion and amortization		14,314			16,951		5,507			36,772			—			36,772
Gross profit	$	101,108		$	71,300	$	6,825		$	179,233		$	563		$	179,796
Other operating expenses (a)																34,098
Income from operations																145,698
Other Expense:
Interest expense																(2,413	)
Fair value adjustments, net																(9,246	)
Foreign exchange gain, net																(4,445	)
Other income																7,049
Income before income and mining taxes															$	136,643
Capital additions	$	12,070		$	16,681	$	7,236		$	35,987		$	3,155		$	39,142

(a) Other operating expense items include general and administrative, exploration and pre-development, care and maintenance, provision for closed operations and environmental matters, and other operating expense, net.

Three months ended June 30, 2025	Greens Creek			Lucky Friday			Keno Hill			Total Reportable Segments			Other			Total
Metal sales	$	122,002		$	64,273		$	26,121		$	212,396		$	—		$	212,396
Environmental remediation services		—			—			—			—			6,596			6,596
Intersegment sales		—			—			1,201			1,201			—			1,201
Reconciliation of sales		122,002			64,273			27,322			213,597			6,596			220,193
Elimination of intersegment sales		—			—			(1,201	)		(1,201	)		—			(1,201	)
Total consolidated sales																	218,992
Salaries, wages and employee benefits		18,281			14,559			7,209			40,049			138			40,187
Contractors		1,557			3,828			3,886			9,271			6,419			15,690
Materials and consumables		25,400			10,899			8,050			44,349			68			44,417
Product inventory change		(9,234	)		(476	)		1,968			(7,742	)		—			(7,742	)
Other direct production costs		10,020			201			(373	)		9,848			—			9,848
Depreciation, depletion and amortization		12,897			13,275			5,141			31,313			—			31,313
Gross profit (loss)	$	63,081		$	21,987		$	240		$	85,308		$	(29	)	$	85,279
Other operating expenses (a)																	27,312
Income from operations																	57,967
Other Expense:
Interest expense																	(10,948	)
Fair value adjustments, net																	4,450
Foreign exchange gain, net																	(3,793	)
Other income																	1,345
Income before income and mining taxes																$	49,021
Capital additions	$	8,397		$	15,942		$	17,045		$	41,384		$	1,292		$	42,676

(a) Other operating expense items include general and administrative, exploration and pre-development, care and maintenance, provision for closed operations and environmental matters, and other operating expense, net.

Six months ended June 30, 2026	Greens Creek			Lucky Friday		Keno Hill			Total Reportable Segments			Other			Total
Metal sales	$	416,332		$	232,577	$	80,894		$	729,803		$	—		$	729,803
Environmental remediation services		—			—		—			—			15,481			15,481
Intersegment sales		—			—		3,873			3,873			—			3,873
Reconciliation of sales		416,332			232,577		84,767			733,676			15,481			749,157
Elimination of intersegment sales		—			—		(3,873	)		(3,873	)		—			(3,873	)
Total consolidated sales																745,284
Salaries, wages and other benefits		39,806			39,188		17,636			96,630			289			96,919
Contractors		5,422			8,038		6,269			19,729			15,291			35,020
Materials and consumables		54,317			21,020		15,230			90,567			(417	)		90,150
Product inventory change		(4,223	)		1,164		(3,708	)		(6,767	)		—			(6,767	)
Other direct production costs		20,964			733		4,632			26,329			42			26,371
Depreciation, depletion and amortization		30,297			30,560		9,683			70,540			—			70,540
Gross profit	$	269,749		$	131,874	$	31,152		$	432,775		$	276		$	433,051
Other operating expenses (a)																64,246
Income from operations																368,805
Other Expense:
Interest expense																(8,069	)
Fair value adjustments, net																(15,191	)
Foreign exchange loss, net																(3,947	)
Other income																10,598
Income before income and mining taxes															$	352,196
Capital additions	$	18,183		$	33,699	$	22,261		$	74,143		$	4,264		$	78,407

(a) Other operating expense items include general and administrative, exploration and pre-development, care and maintenance, provision for closed operations and environmental matters, and other operating expense, net.
 

Six months ended June 30, 2025	Greens Creek			Lucky Friday			Keno Hill			Total Reportable Segments			Other			Total
Metal sales	$	240,145		$	127,467		$	43,030		$	410,642		$	—		$	410,642
Environmental remediation services		—			—			—			—			13,684			13,684
Intersegment sales		—			—			2,187			2,187			—			2,187
Reconciliation of sales		240,145			127,467			45,217			412,829			13,684			426,513
Elimination of intersegment sales		—			—			(2,187	)		(2,187	)		—			(2,187	)
Total consolidated sales																	424,326
Salaries, wages and employee benefits		36,534			29,335			13,681			79,550			196			79,746
Contractors		2,462			7,691			7,437			17,590			13,350			30,940
Materials and consumables		51,065			22,322			14,044			87,431			174			87,605
Product inventory change		(8,333	)		706			(5,994	)		(13,621	)		—			(13,621	)
Other direct production costs		20,345			(419	)		4,641			24,567			—			24,567
Depreciation, depletion and amortization		26,486			26,700			7,943			61,129			—			61,129
Gross profit (loss)	$	111,586		$	41,132		$	1,278		$	153,996		$	(36	)	$	153,960
Other operating expenses (a)																	48,588
Income from operations																	105,372
Other Expense:
Interest expense																	(22,340	)
Fair value adjustments, net																	7,838
Foreign exchange gain, net																	(4,160	)
Other income																	2,287
Income before income and mining taxes																$	88,997
Capital additions	$	19,156		$	31,388		$	27,481		$	78,025		$	2,489		$	80,514

(a) Other operating expense items include general and administrative, exploration and pre-development, care and maintenance, provision for closed operations and environmental matters, and other operating expense, net.

Other sales for the three and six months ended June 30, 2026 is solely comprised of revenue from our environmental remediation services subsidiary in the Yukon. During the three and six months ended June 30, 2026, Keno Hill sold $2.2 million (2025: $1.2 million) and $3.9 million (2025: $2.2 million), respectively, of precious metals concentrate to Greens Creek which is eliminated upon consolidation.

Sales by metal for the three and six months ended June 30, 2026 and 2025 were as follows (in thousands):

	Three Months Ended June 30,					Six Months Ended June 30,
	2026		2025			2026			2025
Silver	$	213,728	$	122,475		$	509,361		$	240,452
Gold		43,205		38,872			100,182			70,231
Lead		24,364		21,476			46,661			43,582
Zinc		37,470		31,138			74,343			64,263
Copper		8		979			420			1,370
Less: Smelter and refining charges		4,247		(2,544	)		(1,164	)		(9,256	)
Total metal sales		323,022		212,396			729,803			410,642
Environmental remediation services		10,829		6,596			15,481			13,684
Total sales	$	333,851	$	218,992		$	745,284		$	424,326

Sales of metals for the three and six months ended June 30, 2026 include net gains of $9.9 million (2025: $3.3 million) and for the six months ended June 30, 2026, net losses of $0.3 million (2025: $2.0 million), on derivative contracts for silver, lead, and zinc. See Note 8 for more information.

The following table presents total assets by reportable segment as of June 30, 2026 and December 31, 2025 (in thousands):

	June 30, 2026		December 31, 2025
Total assets:
Greens Creek	$	660,706	$	640,011
Lucky Friday		664,035		688,997
Keno Hill		496,117		505,205
Other		1,364,419		974,703
Total assets of reportable segments		3,185,277		2,808,916
Assets of discontinued operations		—		751,729
Total assets	$	3,185,277	$	3,560,645