Note 2 -Business Segments and Sales of Products

6 Months Ended

Jun. 30, 2022

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 (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, Casa Berardi and Nevada Operations.

General corporate activities not associated with operating mines 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, 2022 and 2021 (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2022			2021			2022			2021
Net sales to unaffiliated customers:
Greens Creek	$	92,723		$	113,763		$	178,813		$	212,172
Lucky Friday		35,880			39,645			73,920			68,767
Casa Berardi		62,639			56,122			124,740			129,033
Nevada Operations		—			8,450			268			18,687
Other		—			3			—			176
	$	191,242		$	217,983		$	377,741		$	428,835
Income (loss) from operations:
Greens Creek	$	27,803		$	56,433		$	62,389		$	101,033
Lucky Friday		5,528			11,737			14,299			18,060
Casa Berardi		(572	)		(529	)		(3,271	)		11,177
Nevada Operations		(9,728	)		(20,341	)		(21,963	)		(23,481	)
Other		(15,319	)		(18,158	)		(28,984	)		(36,618	)
	$	7,712		$	29,142		$	22,470		$	70,171

The following table presents identifiable assets by reportable segment as of June 30, 2022 and December 31, 2021 (in thousands):

	June 30, 2022		December 31, 2021
Identifiable assets:
Greens Creek	$	580,692	$	589,944
Lucky Friday		524,734		516,545
Casa Berardi		699,134		701,868
Nevada Operations		468,901		468,985
Other		443,642		451,466
	$	2,717,103	$	2,728,808

Sales by metal for the three- and six-month periods ended June 30, 2022 and 2021 were as follows (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2022			2021			2022			2021
Silver	$	70,050		$	92,765		$	136,382		$	170,525
Gold		82,018			86,078			159,186			187,487
Lead		21,314			22,223			40,878			38,116
Zinc		31,176			30,037			66,814			59,228
Less: Smelter and refining charges		(13,316	)		(13,120	)		(25,519	)		(26,521	)
	$	191,242		$	217,983		$	377,741		$	428,835

Sales included net gains of $11.3 million and $6.6 million for the second quarter and first half of 2022, respectively, on financially-settled forward contracts for silver, gold, lead and zinc contained in our sales. Sales included net losses of $3.3 million and $0.5 million for the second quarter and first half of 2021, respectively, on such contracts. See Note 8 for more information.