Note 3 - Business Segments and Sales of Products

9 Months Ended

Sep. 30, 2021

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note 3.    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 nine months ended September 30, 2021 and 2020 (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2021			2020			2021			2020
Net sales to unaffiliated customers:
Greens Creek	$	84,806		$	93,494		$	296,978		$	232,218
Lucky Friday		29,783			20,812			98,550			35,097
Casa Berardi		56,065			53,554			185,098			149,731
San Sebastian		—			9,138			176			23,998
Nevada Operations		22,906			22,705			41,593			61,939
	$	193,560		$	199,703		$	622,395		$	502,983
Income (loss) from operations:					Revised						Revised
Greens Creek	$	26,572		$	44,477		$	127,605		$	76,762
Lucky Friday		6,187			950			24,247			(12,388	)
Casa Berardi		(6,233	)		1,419			4,944			5,330
San Sebastian		(1,727	)		1,946			(4,951	)		1,766
Nevada Operations		(12,077	)		5,486			(35,558	)		6,830
Other		(21,294	)		(17,763	)		(54,688	)		(40,249	)
	$	(8,572	)	$	36,515		$	61,599		$	38,051

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

	September 30, 2021		December 31, 2020
Identifiable assets:				Revised
Greens Creek	$	607,207	$	610,360
Lucky Friday		512,742		520,463
Casa Berardi		705,328		727,008
San Sebastian		38,186		42,617
Nevada Operations		477,621		513,309
Other		333,333		286,453
	$	2,674,417	$	2,700,210

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

	Three Months Ended September 30,						Nine Months Ended September 30,
	2021			2020			2021			2020
Silver	$	61,890		$	79,684		$	232,414		$	179,013
Gold		94,984			98,457			282,471			278,363
Lead		18,082			13,370			56,198			32,244
Zinc		30,273			26,779			89,501			65,540
Less: Smelter and refining charges		(11,669	)		(18,587	)		(38,189	)		(52,177	)
Sales of products	$	193,560		$	199,703		$	622,395		$	502,983

Sales of products for the three- and nine-month periods ended September 30, 2021 included net gains of $5.0 million and $4.5 million, respectively, on financially-settled forward contracts for silver, gold, lead and zinc contained in our sales. Sales of products for the three- and nine-month periods ended September 30, 2020 included net losses of $9.6 million and $12.9 million, respectively, on such contracts. See Note 9 for more information.