Note 2 - Business Segments and Sales of Products

6 Months Ended

Jun. 30, 2021

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note 2.    Business Segments and Sales of Products

We discover, acquire and develop mines and other mineral interests and produce and market concentrates, carbon material and doré which contain silver, gold, lead and zinc. We are currently organized and managed in five segments, which represent our operating units: the Greens Creek unit, the Lucky Friday unit, the Casa Berardi unit, the San Sebastian exploration unit, and the Nevada Operations unit.

General corporate activities not associated with operating units and their various exploration activities, as well as discontinued operations and idle properties, are presented as “other.”  Interest expense, interest income and income and mining taxes are considered general corporate items, and are not allocated to our segments.

The following tables present information about our reportable segments for the three and six months ended June 30, 2021 and 2020 (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2021			2020			2021			2020
Net sales to unaffiliated customers:
Greens Creek	$	113,763		$	84,890		$	212,172		$	138,724
Lucky Friday		39,645			11,455			68,767			14,285
Casa Berardi		56,122			50,005			129,033			96,177
San Sebastian		3			4,934			176			14,860
Nevada Operations		8,450			15,071			18,687			39,234
	$	217,983		$	166,355		$	428,835		$	303,280
Income (loss) from operations:
Greens Creek	$	56,433		$	26,707		$	101,033		$	30,823
Lucky Friday		11,737			(5,218	)		18,060			(13,338	)
Casa Berardi		(3,200	)		3,204			5,917			(676	)
San Sebastian		(961	)		(859	)		(3,224	)		(180	)
Nevada Operations		(20,341	)		(1,545	)		(23,481	)		1,344
Other		(17,206	)		(11,738	)		(33,394	)		(22,486	)
	$	26,462		$	10,551		$	64,911		$	(4,513	)

The following table presents identifiable assets by reportable segment as of June 30, 2021 and December 31, 2020 (in thousands):

	June 30, 2021		December 31, 2020
Identifiable assets:
Greens Creek	$	601,521	$	610,360
Lucky Friday		513,189		520,463
Casa Berardi		679,182		694,522
San Sebastian		40,190		42,617
Nevada Operations		499,583		513,309
Other		337,573		286,453
	$	2,671,238	$	2,667,724

Sales of products by metal for the three- and six-month periods ended June 30, 2021 and 2020 were as follows (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2021			2020			2021			2020
Silver	$	92,765		$	61,756		$	170,525		$	99,328
Gold		86,078			89,212			187,487			179,906
Lead		22,223			12,454			38,116			18,874
Zinc		30,037			21,455			59,228			38,762
Less: Smelter and refining charges		(13,120	)		(18,522	)		(26,521	)		(33,590	)
	$	217,983		$	166,355		$	428,835		$	303,280

Sales of products included net losses of $3.3 million and $0.5 million for the second quarter and first half of 2021, respectively, on financially-settled forward contracts for silver, gold, lead and zinc contained in our sales. Sales of products included net losses of $5.0 million and $3.3 million for the second quarter and first half of 2020, respectively, on such contracts. See Note 8 for more information.