HECLA MINING CO/DE/, 10-Q filed on 5/10/2023
Quarterly Report
v3.23.1
Cover Page - shares
3 Months Ended
Mar. 31, 2023
May 05, 2023
Document Information [Line Items]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Mar. 31, 2023  
Document Fiscal Year Focus 2023  
Document Fiscal Period Focus Q1  
Entity Registrant Name HECLA MINING COMPANY  
Entity Central Index Key 0000719413  
Current Fiscal Year End Date --12-31  
Document Quarterly Report true  
Document Transition Report false  
Entity Current Reporting Status Yes  
Entity Filer Category Large Accelerated Filer  
Entity Shell Company false  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Interactive Data Current Yes  
Entity Address, State or Province ID  
Entity Tax Identification Number 77-0664171  
Entity Address, Address Line One 6500 Mineral Drive, Suite 200  
Entity Address, City or Town Coeur d’Alene  
Entity Address, Postal Zip Code 83815-9408  
City Area Code 208  
Local Phone Number 769-4100  
Entity Common Stock, Shares Outstanding   612,636,803
Entity File Number 1-8491  
Entity Incorporation, State or Country Code DE  
Common Stock [Member]    
Document Information [Line Items]    
Title of 12(b) Security Common Stock, par value $0.25 per share  
Trading Symbol HL  
Security Exchange Name NYSE  
Series B Cumulative Preferred Stock [Member]    
Document Information [Line Items]    
Title of 12(b) Security Series B Cumulative Convertible PreferredStock, par value $0.25 per share  
Trading Symbol HL-PB  
Security Exchange Name NYSE  
v3.23.1
Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Sales $ 199,500 $ 186,499
Cost of sales and other direct production costs 125,550 105,772
Depreciation, depletion and amortization 39,002 35,298
Total cost of sales 164,552 141,070
Gross profit 34,948 45,429
Other operating expenses:    
General and administrative 12,070 8,294
Exploration and pre-development 4,967 12,808
Ramp-up and suspension costs 11,336 6,205
Provision for closed operations and environmental matters 1,044 901
Other operating (income) expense (22) 2,463
Total other operating expenses 29,395 30,671
Income from operations 5,553 14,758
Other income (expense):    
Interest expense (10,165) (10,406)
Fair value adjustments, net 3,181 5,965
Net foreign exchange gain (loss) 108 (2,038)
Other income 1,392 1,505
Total other expense (5,484) (4,974)
Income before income and mining taxes 69 9,784
Income and mining tax expense (3,242) (5,631)
Net (loss) income (3,173) 4,153
Preferred stock dividends (138) (138)
Net (loss) income applicable to common stockholders (3,311) 4,015
Comprehensive income (loss):    
Net (loss) income (3,173) 4,153
Change in fair value of derivative contracts designated as hedge transactions 6,516 (33,165)
Comprehensive income (loss) $ 3,343 $ (29,012)
Basic (loss) income per common share after preferred dividends $ (0.01) $ 0.01
Diluted (loss) income per common share after preferred dividends $ (0.01) $ 0.01
Weighted average number of common shares outstanding - basic 600,075,000 538,490,000
Weighted average number of common shares outstanding - diluted 600,075,000 544,061,000
Cash dividends declared per common share $ 0.01 $ 0.01
v3.23.1
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Operating activities:    
Net (loss) income $ (3,173) $ 4,153
Non-cash elements included in net (loss) income:    
Depreciation, depletion and amortization 39,892 35,456
Adjustments of inventory to net realizable value 4,521 0
Fair value adjustments, net (3,181) (2,245)
Provision for reclamation and closure costs 1,694 1,643
Stock compensation 1,190 1,271
Deferred income taxes 558 2,234
Foreign exchange (gain) loss (2,218) 2,280
Other non-cash items, net 186 483
Change in assets and liabilities:    
Accounts receivable 15,477 2,779
Inventories (9,239) (5,081)
Other current and non-current assets (9,856) 1,696
Accounts payable, accrued and other current liabilities (9,304) (13,907)
Accrued payroll and related benefits 4,705 6,909
Accrued taxes 2,226 3,754
Accrued reclamation and closure costs and other non-current liabilities 7,125 (3,516)
Cash provided by operating activities 40,603 37,909
Investing activities:    
Additions to properties, plants, equipment and mineral interests (54,443) (21,478)
Proceeds from sale of investments 0 2,487
Proceeds from disposition of properties, plants and equipment 0 617
Purchases of investments 0 (10,868)
Net cash used in investing activities (54,443) (29,242)
Financing activities:    
Proceeds from sale of common stock, net 11,885 0
Acquisition of treasury stock (482) (1,921)
Borrowing of debt 13,000 0
Repayment of debt (13,000) 0
Dividends paid to common and preferred stockholders (3,891) (3,509)
Credit facility fees paid 0 (54)
Repayments of finance leases (2,464) (1,695)
Net cash provided by (used in) financing activities 5,048 (7,179)
Effect of exchange rates on cash 171 519
Net (decrease) increase in cash, cash equivalents and restricted cash 8,621 2,007
Cash, cash equivalents and restricted cash at beginning of period 105,907 211,063
Cash, cash equivalents and restricted cash at end of period 97,286 213,070
Supplemental disclosure of cash flow information:    
Cash paid for interest 18,621 18,603
Cash paid for income and mining taxes, net 1,634 679
Significant non-cash investing and financing activities:    
Addition of finance lease obligations and right-of-use assets $ 850 $ 2,864
v3.23.1
Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Mar. 31, 2023
Dec. 31, 2022
Current assets:    
Cash and cash equivalents $ 95,939 $ 104,743
Accounts receivable:    
Trade 28,928 45,146
Other, net 13,216 10,695
Inventories:    
Concentrates, dore, stockpiled ore, and metals in transit and in-process 28,054 37,303
Materials and supplies 56,286 53,369
Other current assets 22,527 16,471
Total current assets 244,950 267,727
Investments 26,434 24,018
Restricted cash and investments 1,347 1,164
Properties, plants, equipment and mineral interests, net 2,587,565 2,569,790
Operating lease right-of-use assets 10,609 11,064
Deferred tax assets 13,280 21,105
Other non-current assets 41,439 32,304
Total assets 2,925,624 2,927,172
Current liabilities:    
Accounts payable and accrued liabilities 83,704 84,747
Accrued payroll and related benefits 41,141 37,579
Accrued taxes 6,318 4,030
Finance leases 9,040 9,483
Accrued reclamation and closure costs 8,531 8,591
Accrued interest 5,191 14,454
Other current liabilities 11,428 19,582
Total current liabilities 165,353 178,466
Accrued reclamation and closure costs 109,808 108,408
Long-term debt including finance leases 516,961 517,742
Deferred tax liability 121,081 125,846
Other non-current liabilities 20,264 17,743
Total liabilities 933,467 948,205
Commitments and contingencies (Notes 4, 7, 8, and 10)
STOCKHOLDERS' EQUITY    
Preferred stock, 5,000,000 shares authorized - Series B preferred stock, $0.25 par value, 157,776 shares issued and outstanding, liquidation preference - $7,889 39 39
Common stock, $0.25 par value, authorized 750,000,000 shares; issued March 31, 2023 - 610,490,740 shares and December 31, 2022 - 607,619,495 shares 152,536 151,819
Capital surplus 2,273,793 2,260,290
Accumulated deficit (410,995) (403,931)
Accumulated other comprehensive income (loss) 8,964 2,448
Less treasury stock, at cost; March 31, 2023 - 8,132,553 and December 31, 2022 - 8,132,553 shares issued and held in treasury (32,180) (31,698)
Total stockholders' equity 1,992,157 1,978,967
Total liabilities and stockholders' equity $ 2,925,624 $ 2,927,172
v3.23.1
Condensed Consolidated Balance Sheets (Parentheticals) - USD ($)
$ in Thousands
Mar. 31, 2023
Dec. 31, 2022
Preferred stock, shares authorized (in shares) 5,000,000 5,000,000
Series B preferred stock, par value (in dollars per share) $ 0.25 $ 0.25
Series B preferred stock, shares issued (in shares) 157,776 157,776
Series B preferred stock, shares outstanding (in shares) 157,776 157,776
Series B preferred stock, liquidation preference $ 7,889 $ 7,889
Common stock, par value (in dollars per share) $ 0.25 $ 0.25
Common stock, shares authorized (in shares) 750,000,000 750,000,000
Common stock, shares issued (in shares) 610,490,740 607,619,495
Treasury stock, shares (in shares) 8,229,212 8,132,553
v3.23.1
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($)
$ in Thousands
Total
Preferred Stock
Common Stock
Capital Surplus
Accumulated Deficit
Accumulated Other Comprehensive Income (Loss), net
Treasury Stock
Balance at Dec. 31, 2021 $ 1,760,787 $ 39 $ 136,391 $ 2,034,485 $ (353,651) $ (28,456) $ (28,021)
Net (loss) income 4,153       4,153    
Common stock issued for 401(k) match 927   44 883      
Stock-based compensation expense 1,271     1,271      
Incentive compensation units distributed (1,921)   222 (222)     (1,921)
Common stock ($0.00625 per share) and Series B Preferred Stock ($0.875 per share) dividends declared (3,509)       (3,509)    
Other comprehensive income (loss) (33,165)         (33,165)  
Balance at Mar. 31, 2022 1,728,543 39 136,657 2,036,417 (353,007) (61,621) (29,942)
Balance at Dec. 31, 2022 1,978,967 39 151,819 2,260,290 (403,931) 2,448 (31,698)
Net (loss) income (3,173)       (3,173)    
Common stock issued for 401(k) match 1,145   50 1,095      
Stock-based compensation expense 1,190     1,190      
Incentive compensation units distributed (482)   125 (125)     (482)
Common stock ($0.00625 per share) and Series B Preferred Stock ($0.875 per share) dividends declared (3,891)       3,891    
Common stock issued under ATM program 11,885   542 11,343      
Other comprehensive income (loss) 6,516         6,516  
Balance at Mar. 31, 2023 $ 1,992,157 $ 39 $ 152,536 $ 2,273,793 $ (410,995) $ 8,964 $ (32,180)
v3.23.1
Condensed Consolidated Statements of Changes in Stockholders' Equity (Parentheticals) - $ / shares
3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Common stock dividends declared, per common share (in dollars per share) $ 0.00625 $ 0.00625
Preferred stock dividends declared, per share (in dollars per share) $ 0.875 $ 0.875
Common stock issued for 401(k) match, shares (in shares) 199,623 180,000
Incentive compensation units shares 498,348 888,000
Common stock issued under ATM program , shares 2,173,274  
v3.23.1
Note 1 - Basis of Preparation of Financial Statements
3 Months Ended
Mar. 31, 2023
Disclosure Text Block [Abstract]  
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block]

Note 1. Basis of Preparation of Financial Statements

 

The accompanying unaudited interim condensed consolidated financial statements of Hecla Mining Company and its subsidiaries (collectively, “Hecla,” “the Company,” “we,” “our,” or “us,” except where the context requires otherwise) have been prepared in accordance with the instructions to Form 10-Q and do not include all information and disclosures required annually by accounting principles generally accepted in the United States of America (“GAAP”). Therefore, this information should be read in conjunction with Hecla Mining Company’s consolidated financial statements and notes contained in our annual report on Form 10-K for the year ended December 31, 2022 (“2022 Form 10-K”). The consolidated December 31, 2022 balance sheet data was derived from our audited consolidated financial statements. The information furnished herein reflects all adjustments that are, in the opinion of management, necessary for a fair statement of the results for the interim periods reported. All such adjustments are, in the opinion of management, of a normal recurring nature. Operating results for the three-month period ended March 31, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023.

v3.23.1
Note 2 -Business Segments and Sales of Products
3 Months Ended
Mar. 31, 2023
Disclosure Text Block [Abstract]  
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 five segments: Greens Creek, Lucky Friday, Keno Hill, Casa Berardi and Nevada Operations.

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, 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 metal sales for the three months ended March 31, 2023 and 2022 (in thousands):

 

 

Three Months Ended
March 31,

 

 

 

2023

 

 

2022

 

Net sales to unaffiliated customers:

 

 

 

 

 

 

Greens Creek

 

$

98,611

 

 

$

86,090

 

Lucky Friday

 

 

49,110

 

 

 

38,040

 

Keno Hill

 

 

 

 

 

 

Casa Berardi

 

 

50,998

 

 

 

62,101

 

Nevada Operations

 

 

272

 

 

 

268

 

Other

 

 

509

 

 

 

 

 

 

$

199,500

 

 

$

186,499

 

Income (loss) from operations:

 

 

 

 

 

 

Greens Creek

 

$

31,241

 

 

$

34,586

 

Lucky Friday

 

 

14,568

 

 

 

8,771

 

Keno Hill

 

 

(6,763

)

 

 

 

Casa Berardi

 

 

(13,693

)

 

 

(2,699

)

Nevada Operations

 

 

(5,410

)

 

 

(12,231

)

Other

 

 

(14,390

)

 

 

(13,669

)

 

 

$

5,553

 

 

$

14,758

 

 

The following table presents identifiable assets by reportable segment as of March 31, 2023 and December 31, 2022 (in thousands):

 

 

March 31, 2023

 

 

December 31, 2022

 

Identifiable assets:

 

 

 

 

 

 

Greens Creek

 

$

582,855

 

 

$

582,687

 

Lucky Friday

 

 

553,447

 

 

 

571,510

 

Keno Hill

 

 

303,340

 

 

 

276,096

 

Casa Berardi

 

 

693,763

 

 

 

681,631

 

Nevada Operations

 

 

465,037

 

 

 

466,722

 

Other

 

 

327,182

 

 

 

348,526

 

 

 

$

2,925,624

 

 

$

2,927,172

 

 

 

Our sales for the three month period ended March 31, 2023 are comprised of metal sales as described below and $0.5 million of environmental services revenue.

 

Sales by metal for the three month periods ended March 31, 2023 and 2022 were as follows (in thousands):

 

 

Three Months Ended March 31,

 

 

 

2023

 

 

2022

 

Silver

 

$

81,532

 

 

$

66,332

 

Gold

 

 

75,087

 

 

 

77,168

 

Lead

 

 

25,402

 

 

 

19,564

 

Zinc

 

 

32,943

 

 

 

35,638

 

Less: Smelter and refining charges

 

 

(15,973

)

 

 

(12,203

)

 

 

$

198,991

 

 

$

186,499

 

 

Sales of metals for the three month periods ended March 31, 2023 and 2022, included a net gain of $0.9 million and a net loss of $4.8 million, respectively, on financially-settled forward option contracts for silver, gold, lead and zinc. See Note 8 for more information.

v3.23.1
Note 3 - Income and Mining Taxes
3 Months Ended
Mar. 31, 2023
Disclosure Text Block [Abstract]  
Income Tax Disclosure [Text Block]

Note 3. Income and Mining Taxes

 

Major components of our income and mining tax benefit (provision) for the three months ended March 31, 2023 and 2022 are as follows (in thousands):

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2023

 

 

2022

 

Current:

 

 

 

 

 

 

Domestic

 

$

(1,528

)

 

$

(2,103

)

Foreign

 

 

(1,174

)

 

 

(1,741

)

Total current income and mining tax provision

 

 

(2,702

)

 

 

(3,844

)

Deferred:

 

 

 

 

 

 

Domestic

 

 

(5,341

)

 

 

(5,091

)

Foreign

 

 

4,801

 

 

 

3,304

 

Total deferred income and mining tax provision

 

 

(540

)

 

 

(1,787

)

Total income and mining tax provision

 

$

(3,242

)

 

$

(5,631

)

 

The income and mining tax benefit (provision) for the three months ended March 31, 2023 and 2022 varies from the amounts that would have resulted from applying the statutory tax rates to pre-tax income due primarily to the impact of taxation in foreign jurisdictions, non-recognition of net operating losses and foreign exchange gains and losses in certain jurisdictions.

 

For the three month period ended March 31, 2023, we used the annual effective tax rate method to calculate the tax provision. Valuation allowances on Nevada, Mexico and certain Canadian net operating losses were treated as discrete adjustments to the tax calculation including losses incurred by the acquired Alexco Resource Corp. ("Alexco") entities, which were acquired on September 7, 2022, partially causing the increase in the income tax rate for the three months ended March 31, 2023, as compared to the three months ended March 31, 2022.

v3.23.1
Note 4 - Employee Benefit Plans
3 Months Ended
Mar. 31, 2023
Disclosure Text Block [Abstract]  
Retirement Benefits [Text Block]

Note 4. Employee Benefit Plans

 

We sponsor three defined benefit pension plans covering substantially all U.S. employees. Net periodic pension cost for the plans consisted of the following for the three months ended March 31, 2023 and 2022 (in thousands):

 

 

Three Months Ended
March 31,

 

 

 

2023

 

 

2022

 

Service cost

 

$

949

 

 

$

1,566

 

Interest cost

 

 

1,993

 

 

 

1,369

 

Expected return on plan assets

 

 

(3,107

)

 

 

(3,363

)

Amortization of prior service cost

 

 

125

 

 

 

128

 

Amortization of net loss

 

 

(47

)

 

 

512

 

Net periodic pension (benefit) cost

 

$

(87

)

 

$

212

 

 

For the three month periods ended March 31, 2023 and 2022, the service cost component of net periodic pension cost is included in the same line items of our condensed consolidated financial statements as other employee compensation costs. The net benefit related

to all other components of net periodic pension cost of $1.0 million and $1.4 million for the three month period ended March 31, 2023, and 2022, respectively, is included in other (expense) income on our condensed consolidated statements of operations and comprehensive (loss) income.

v3.23.1
Note 5 - (Loss) Income Per Common Share
3 Months Ended
Mar. 31, 2023
Disclosure Text Block [Abstract]  
Earnings Per Share [Text Block]

Note 5. (Loss) Income Per Common Share

 

We calculate basic (loss) income per common share on the basis of the weighted average number of shares of common stock outstanding during the period. Diluted income per share is calculated using the weighted average number of shares of common stock outstanding during the period plus the effect of potential dilutive common shares during the period using the treasury stock and if-converted methods.

Potential dilutive shares of common stock include outstanding unvested restricted stock awards, deferred restricted stock units, warrants and convertible preferred stock for periods in which we have reported net income. For periods in which we report net losses, potential dilutive shares of common stock are excluded, as their conversion and exercise would be anti-dilutive.

 

The following table represents net (loss) income per common share – basic and diluted (in thousands, except income (loss) per share):

 

 

Three Months Ended March 31,

 

 

 

2023

 

 

2022

 

Numerator

 

 

 

 

 

 

Net (loss) income

 

$

(3,173

)

 

$

4,153

 

Preferred stock dividends

 

 

(138

)

 

 

(138

)

Net (loss) income applicable to common shares

 

$

(3,311

)

 

$

4,015

 

 

 

 

 

 

 

 

Denominator

 

 

 

 

 

 

Basic weighted average common shares

 

 

600,075

 

 

 

538,490

 

Dilutive restricted stock units, warrants and deferred shares

 

 

 

 

 

5,571

 

Diluted weighted average common shares

 

 

600,075

 

 

 

544,061

 

 

 

 

 

 

 

 

Basic (loss) income per common share

 

$

(0.01

)

 

$

0.01

 

Diluted (loss) income per common share

 

$

(0.01

)

 

$

0.01

 

 

For the three months ended March 31, 2023, all outstanding unvested restricted stock units, deferred restricted stock units, warrants and convertible preferred stock were excluded from the computation of diluted loss per share, as our reported net loss would cause their conversion and exercise to have an anti-dilutive effect on the calculation of diluted loss per share. For the three months ended March 31, 2022, the calculation of diluted income per common share included (i) 1,954,773 incentive compensation units
that were unvested during the period, (ii)
1,506,950 warrants to purchase one share of common stock and (iii) 2,109,056 deferred shares that were dilutive.

v3.23.1
Note 6 - Stockholders' Equity
3 Months Ended
Mar. 31, 2023
Disclosure Text Block [Abstract]  
Stockholders' Equity

Note 6. Stockholders’ Equity

 

At-The-Market Equity Distribution Agreement

 

Pursuant to an equity distribution agreement dated February 18, 2021, we may offer and sell up to 60 million shares of our common stock from time to time to or through sales agents. Sales of the shares, if any, will be made by means of ordinary brokers transactions or as otherwise agreed between the Company and the agents as principals. Whether or not we engage in sales from time to time may depend on a variety of factors, including our share price, our cash resources, customary black-out restrictions, and whether we have any material inside information. The agreement can be terminated by us at any time. Any sales of shares under the equity distribution agreement are registered under the Securities Act of 1933, as amended, pursuant to a shelf registration statement on Form S-3. As of March 31, 2023 we had sold 6,033,473 shares under the agreement for proceeds of $29.2 million, net of commissions and fees of $0.5 million. Of this balance, 2,173,274 shares were sold during the three months ended March 31, 2023 for proceeds of $11.9 million, net of commissions and fees of $0.2 million.

 

Stock-based Compensation Plans

 

The Company has stock incentive plans for executives, directors and eligible employees, comprised of performance shares and restricted stock. Stock-based compensation expense for restricted stock unit and performance-based grants (collectively "incentive compensation") to employees and shares issued to non-employee directors totaled $1.2 million and $1.3 million for the three months

ended March 31, 2023 and 2022, respectively. At March 31, 2023, there was $5.2 million of unrecognized stock-based compensation cost which is expected to be recognized over a weighted-average remaining vesting period of 1.2 years.

 

In connection with the vesting of incentive compensation, employees have in the past, at their election and when permitted by us, chosen to satisfy their minimum tax withholding obligations through net share settlement, pursuant to which the Company withholds the number of shares necessary to satisfy such withholding obligations and pays the obligations in cash. As a result, in the first three months of 2023, we withheld 96,659 shares valued at approximately $0.5 million, or approximately $4.98 per share.

 

Common Stock Dividends

 

The following table summarizes the dividends our Board of Directors have declared and we have paid during 2023 pursuant to our dividend policy:

Quarter

 

Prior Quarter Realized Silver Price

 

Silver-linked component

 

Minimum component

 

Total dividend per share

First

 

22.03

 

$0.0025

 

$0.00375

 

$0.00625

v3.23.1
Note 7 - Debt, Credit Agreement and Leases
3 Months Ended
Mar. 31, 2023
Disclosure Text Block [Abstract]  
Debt, Credit Facility and Leases

Note 7. Debt, Credit Agreement and Leases

 

Our debt as of March 31, 2023 and December 31, 2022 consisted of our 7.25% Senior Notes due February 15, 2028 (“Senior Notes”) and our Series 2020-A Senior Notes due July 9, 2025 (the “IQ Notes”) and any drawn amounts on our $150 million Credit Agreement, which is described separately below. The following tables summarize our long-term debt balances, excluding interest and borrowings under the Credit Agreement, as of March 31, 2023 and December 31, 2022 (in thousands):

 

 

March 31, 2023

 

 

 

Senior Notes

 

 

IQ Notes

 

 

Total

 

Principal

 

$

475,000

 

 

$

35,643

 

 

$

510,643

 

Unamortized discount/premium and issuance costs

 

 

(4,415

)

 

 

356

 

 

 

(4,059

)

Long-term debt balance

 

$

470,585

 

 

$

35,999

 

 

$

506,584

 

 

 

 

December 31, 2022

 

 

 

Senior Notes

 

 

IQ Notes

 

 

Total

 

Principal

 

$

475,000

 

 

$

35,614

 

 

$

510,614

 

Unamortized discount/premium and issuance costs

 

 

(4,640

)

 

 

392

 

 

 

(4,248

)

Long-term debt balance

 

$

470,360

 

 

$

36,006

 

 

$

506,366

 

 

The following table summarizes the scheduled annual future payments, including interest, for our Senior Notes, IQ Notes, and finance and operating leases as of March 31, 2023 (in thousands). The amounts for the IQ Notes are stated in U.S. dollars (“USD”) based on the USD/Canadian dollar (“CAD”) exchange rate as of March 31, 2023.

Twelve-month period ending March 31,

 

Senior Notes

 

 

IQ Notes

 

 

Finance Leases

 

 

Operating Leases

 

2024

 

$

34,438

 

 

$

2,322

 

 

$

8,812

 

 

$

2,652

 

2025

 

 

34,438

 

 

 

38,604

 

 

 

6,813

 

 

 

1,276

 

2026

 

 

34,438

 

 

 

 

 

 

3,681

 

 

 

1,281

 

2027

 

 

34,438

 

 

 

 

 

 

1,327

 

 

 

1,256

 

2028

 

 

505,131

 

 

 

 

 

 

23

 

 

 

1,161

 

Thereafter

 

 

 

 

 

 

 

 

 

 

 

6,307

 

 

 

 

642,883

 

 

 

40,926

 

 

 

20,656

 

 

 

13,933

 

Less: effect of discounting

 

 

 

 

 

 

 

 

(1,239

)

 

 

(3,285

)

Total

 

$

642,883

 

 

$

40,926

 

 

$

19,417

 

 

$

10,648

 

 

Credit Agreement

 

On July 21, 2022, we entered into a revolving credit facility (the "Credit Agreement") with various financial institutions (the “Lenders”), Bank of Montreal and Bank of America, N.A. as letters of credit issuers, and Bank of America, N.A., as administrative agent for the Lenders and as swingline lender, to replace our prior credit agreement. The Credit Agreement is a $150 million senior secured revolving facility, with an option to be increased in an aggregate amount not to exceed $75 million. Any revolving loans under the Credit Agreement have a maturity date of July 21, 2026. Proceeds of the revolving loans under the Credit Agreement may be used for general corporate purposes. The interest rate on the outstanding loans under the Credit Agreement is based on the Company’s net leverage ratio and is calculated at (i) Term Secured Overnight Financing Rate ("SOFR") plus 2% to 3.5%; or (ii) Bank of America’s Base Rate plus 1% to 2.5% with Base Rate being the highest of (i) the Bank of America prime rate, (ii) the Federal Funds rate plus .50%

or (iii) Term SOFR plus 1.00%. For each amount drawn, we elect whether we draw on a one, three or six month basis or annual basis for SOFR. If we elect to draw for greater than six months, we pay interest quarterly on the outstanding amount.

 

We are also required to pay a commitment fee of between 0.45% to 0.78750%, depending on our net leverage ratio. Letters of credit issued under the Credit Agreement bear a fee between 2.00% and 3.50% based on our net leverage ratio, as well as a fronting fee to each issuing bank at an agreed upon rate per annum on the average daily dollar amount of our letter of credit exposure.

 

Hecla Mining Company and certain of our subsidiaries are the borrowers under the Credit Agreement, while certain of our other subsidiaries are guarantors of the borrowers’ obligations under the Credit Agreement. As further security, the Credit Agreement is collateralized by a mortgage on the Greens Creek mine, the equity interests of subsidiaries that own the Greens Creek mine or are part of the Greens Creek Joint Venture and our subsidiary Hecla Admiralty Company (the “Greens Creek Group”), and by all of the Green Creek Group’s rights and interests in the Greens Creek Joint Venture Agreement, and in all assets of the joint venture and of any member of the Greens Creek Group.

 

At March 31, 2023, there was $6.7 million of outstanding letters of credit. Letters of credit that are outstanding reduce availability under the Credit Agreement.

 

We believe we were in compliance with all covenants under the Credit Agreement as of March 31, 2023.

v3.23.1
Note 8 - Derivative Instruments
3 Months Ended
Mar. 31, 2023
Disclosure Text Block [Abstract]  
Derivative Instruments

Note 8. Derivative Instruments

 

General

 

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.

 

Foreign Currency

 

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 utilizes forward contracts to buy CAD, some of which are designated as cash flow hedges. As of March 31, 2023, we have 569 forward contracts outstanding to buy a total of CAD$604.8 million having a notional amount of USD$454.7 million. The CAD contracts that are related to forecasted cash operating costs at Casa Berardi to be incurred from 2023 through 2026 have a total notional value of CAD$393.9 million and have CAD-to-USD exchange rates ranging between 1.272 and 1.3757.

 

As of March 31, 2023 and December 31, 2022, we recorded the following balances for the fair value of the contracts (in millions):

 

 

March 31,

 

 

December 31,

 

Balance sheet line item:

 

2023

 

 

2022

 

Other current assets

 

$

1.6

 

 

$

1.1

 

Other non-current assets

 

 

0.8

 

 

 

0.4

 

Current derivative liabilities

 

 

3.6

 

 

 

4.0

 

Non-current derivative liabilities

 

$

3.1

 

 

$

3.6

 

Net unrealized losses of $6.1 million related to the effective portion of the hedges are included in accumulated other comprehensive income (loss) as of March 31, 2023. Unrealized gains and losses will be transferred from accumulated other comprehensive income (loss) to current earnings as the underlying operating expenses are recognized. We estimate $3.3 million in net unrealized losses included in accumulated other comprehensive income (loss) as of March 31, 2023 will be reclassified to current earnings in the next twelve months. Net realized losses of $0.9 million on contracts related to underlying expenses which have been recognized were transferred from accumulated other comprehensive income (loss) and included in cost of sales and other direct production costs for the three months ended March 31, 2023. Net gains of $0.7 million for the three months ended March 31, 2023 related to contracts not designated as hedges and no net unrealized gains or losses related to ineffectiveness of the hedges are included

in fair value adjustments, net on our consolidated statements of operations and comprehensive income for the three months ended March 31, 2023

 

Metals Prices

 

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

changes in prices of silver, gold, zinc and lead contained in our concentrate shipments between the time of shipment and final settlement; and
changes in prices of zinc and lead (but not silver and gold) contained in our forecasted future concentrate shipments.

 

The following tables summarize the quantities of metals committed under forward sales contracts at March 31, 2023 and December 31, 2022:

 

March 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2023 settlements

 

 

3,350

 

 

 

8

 

 

 

15,543

 

 

 

18,133

 

 

$

22.27

 

 

$

1,883

 

 

$

1.35

 

 

$

1.01

 

Contracts on forecasted sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2023 settlements

 

 

 

 

 

 

 

 

29,873

 

 

 

38,581

 

 

 

 

 

 

 

 

$

1.47

 

 

$

1.00

 

2024 settlements

 

 

 

 

 

 

 

 

1,764

 

 

 

75,178

 

 

 

 

 

 

 

 

 

1.31

 

 

$

0.98

 

2025 settlements

 

 

 

 

 

 

 

 

 

 

 

882

 

 

$

 

 

$

 

 

$

 

 

$

0.97

 

 

December 31, 2022

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2023 settlements

 

 

3,124

 

 

 

8

 

 

 

18,629

 

 

 

11,960

 

 

$

21.55

 

 

$

1,795

 

 

$

1.38

 

 

$

0.98

 

Contracts on forecasted sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2023 settlements

 

 

 

 

 

 

 

 

37,533

 

 

 

75,618

 

 

N/A

 

 

N/A

 

 

$

1.34

 

 

$

1.00

 

2024 settlements

 

 

 

 

 

 

 

 

 

 

 

45,856

 

 

N/A

 

 

N/A

 

 

N/A

 

 

$

0.99

 

 

We recorded the following balances for the fair value of the forward contracts as of March 31, 2023 and December 31, 2022 (in millions):

 

 

March 31, 2023

 

 

December 31, 2022

 

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

 

$

5.3

 

 

$

 

 

$

5.3

 

 

$

1.2

 

 

$

 

 

$

1.2

 

Other non-current assets

 

$

1.3

 

 

$

 

 

$

1.3

 

 

$

0.1

 

 

$

 

 

$

0.1

 

Current derivative liabilities

 

 

 

 

 

(4.6

)

 

 

(4.6

)

 

 

 

 

 

(12.1

)

 

 

(12.1

)

Non-current derivative liabilities

 

 

 

 

 

(0.05

)

 

 

(0.1

)

 

 

 

 

 

(2.5

)

 

 

(2.5

)

 

Net realized and unrealized gains of $24.8 million related to the effective portion of the contracts designated as hedges were included in accumulated other comprehensive income (loss) as of March 31, 2023, and are net of related deferred taxes. Unrealized gains and losses will be transferred from accumulated other comprehensive income (loss) to current earnings as the underlying forecasted sales are recognized. We estimate $15.2 million in net realized and unrealized gains included in accumulated other comprehensive income (loss) as of March 31, 2023 would be reclassified to current earnings in the next twelve months. The realized gains arose due to cash settlement of zinc contracts prior to maturity in 2022 for net proceeds of $17.4 million. We recognized a net gain of $0.9 million, including a $3.0 million loss transferred from accumulated other comprehensive income (loss), and a net loss of $4.8 million, during the three months ended March 31, 2023 and 2022, respectively. These gains and losses were recognized on the contracts utilized to manage exposure to prices of metals in our concentrate shipments, which are included in sales. The net losses and gains recognized on the contracts offset gains and losses related to price adjustments on our provisional concentrate sales due to changes to silver, gold, lead and zinc prices between the time of sale and final settlement.

 

Credit-risk-related Contingent Features

 

Certain of our derivative contracts contain cross default provisions which provide that a default under our Credit Agreement would cause a default under the derivative contract. As of March 31, 2023, we have not posted any collateral related to these contracts. The fair value of derivatives in a net liability position related to these agreements was $14.0 million as of March 31, 2023, which includes

accrued interest but excludes any adjustment for nonperformance risk. If we were in breach of any of these provisions at March 31, 2023, we could have been required to settle our obligations under the agreements at their termination value of $14.0 million.

v3.23.1
Note 9 - Fair Value Measurement
3 Months Ended
Mar. 31, 2023
Disclosure Text Block [Abstract]  
Fair Value Measurement

Note 9. Fair Value Measurement

 

Fair value adjustments, net is comprised of the following:

 

 

Three Months Ended March 31,

 

 

 

2023

 

 

2022

 

Gain (loss) on derivative contracts

 

$

987

 

 

$

(201

)

Unrealized gain on equity securities investments

 

 

2,194

 

 

 

6,100

 

Gain on disposition or exchange of investments

 

 

 

 

 

66

 

Total fair value adjustments, net

 

$

3,181

 

 

$

5,965

 

 

Accounting guidance has established a hierarchy for inputs used to measure assets and liabilities at fair value on a recurring basis. The three levels included in the hierarchy are:

Level 1: quoted prices in active markets for identical assets or liabilities;

Level 2: significant other observable inputs; and

Level 3: significant unobservable inputs.

 

The table below sets forth our assets and liabilities that were accounted for at fair value on a recurring basis and the fair value calculation input hierarchy level that we have determined applies to each asset and liability category (in thousands).

Description

 

Balance at
March 31,
2023

 

 

Balance at
December 31,
2022

 

 

Input
Hierarchy Level

Assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents:

 

 

 

 

 

 

 

 

Money market funds and other bank deposits

 

$

95,939

 

 

$

104,743

 

 

Level 1

Current and non-current investments

 

 

 

 

 

 

 

 

Equity securities - mining industry

 

 

26,434

 

 

 

24,018

 

 

Level 1

Trade accounts receivable:

 

 

 

 

 

 

 

 

Receivables from provisional concentrate sales

 

 

28,535

 

 

 

45,146

 

 

Level 2

Restricted cash balances:

 

 

 

 

 

 

 

 

Certificates of deposit and other deposits

 

 

1,347

 

 

 

1,164

 

 

Level 1

Derivative contracts - current and non-current derivatives assets:

 

 

 

 

 

 

 

 

Foreign exchange contracts

 

 

2,359

 

 

 

1,518

 

 

Level 2

Metal forward contracts

 

 

6,636

 

 

 

1,309

 

 

Level 2

Total assets

 

$

161,250

 

 

$

177,898

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

Derivative contracts - current derivatives liabilities and other non-current
liabilities:

 

 

 

 

 

 

 

 

Foreign exchange contracts

 

$

6,674

 

 

$

7,548

 

 

Level 2

Metal forward contracts

 

 

4,682

 

 

 

14,643

 

 

Level 2

Total liabilities

 

$

11,356

 

 

$

22,191

 

 

 

Cash and cash equivalents consist primarily of money market funds and are valued at cost, which approximates fair value, and a small portion consists of municipal bonds having maturities of less than 90 days, which are recorded at fair value.

 

Current and non-current restricted cash balances consist primarily of certificates of deposit, U.S. Treasury securities, and other deposits and are valued at cost, which approximates fair value.

 

Our non-current available for sale securities consist of marketable equity securities of companies in the mining industry which are valued using quoted market prices for each security.

 

Trade accounts receivable from provisional concentrate sales are subject to final pricing and valued using quoted prices based on forward curves for the particular metals.

 

We use financially-settled forward contracts to manage exposure to changes in the exchange rate between USD and CAD, and the impact on CAD-denominated operating and capital costs incurred at our Casa Berardi operation and the Keno Hill operation (see Note 8 for more information). The fair value of each contract represents the present value of the difference between the forward exchange rate for the contract settlement period as of the measurement date and the contract settlement exchange rate.

 

We use financially-settled forward contracts to manage the exposure to changes in prices of silver, gold, zinc and lead contained in our concentrate shipments that have not reached final settlement. We also use financially-settled forward contracts to manage the exposure to changes in prices of silver, gold, zinc and lead contained in our forecasted future sales (see Note 8 for more information). The fair value of each forward contract represents the present value of the difference between the forward metal price for the contract settlement period as of the measurement date and the contract settlement metal price.

 

At March 31, 2023, our Senior Notes and IQ Notes were recorded at their carrying value of $470.6 million and $36.0 million, respectively, net of unamortized initial purchaser discount/premium and issuance costs. The estimated fair values of our Senior Notes and IQ Notes were $480.6 million and $35.7 million, respectively, at March 31, 2023. Quoted market prices, which we consider to be Level 1 inputs, are utilized to estimate fair values of the Senior Notes. Unobservable inputs which we consider to be Level 3, including an assumed current annual yield of 7.1%, are utilized to estimate the fair value of the IQ Notes. See Note 7 for more information.

v3.23.1
Note 10 - Commitments, Contingencies and Obligations
3 Months Ended
Mar. 31, 2023
Disclosure Text Block [Abstract]  
Commitments, Contingencies and Obligations

Note 10. Commitments, Contingencies and Obligations

 

Johnny M Mine Area near San Mateo, McKinley County and San Mateo Creek Basin, New Mexico

In August 2012, Hecla Limited and the U.S. Environmental Protection Agency (the “EPA”) entered into a Settlement Agreement and Administrative Order on Consent for Removal Action (“Consent Order”) regarding the Johnny M Mine Area near San Mateo, McKinley County, New Mexico. Mining at the Johnny M Mine was conducted for a limited period of time by a predecessor of Hecla Limited, and the EPA had previously asserted that Hecla Limited may be responsible under the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”) for environmental remediation and past costs incurred by the EPA at the site. Under the Consent Order, Hecla Limited agreed to pay (i) $1.1 million to the EPA for its past response costs at the site and (ii) any future response costs at the site under the Consent Order, in exchange for a covenant not to sue by the EPA. In December 2014, Hecla Limited submitted to the EPA the Engineering Evaluation and Cost Analysis (“EE/CA”) for the site which recommended on-site disposal of mine-related material. In January 2021, the parties began negotiating a new consent order to design and implement the on-site disposal response action recommended in the EE/CA. Based on the foregoing, we believe it is probable that Hecla Limited will incur a liability for the CERCLA removal action and we have accrued $9.0 million, primarily representing estimated current costs to design and implement the remedy, which are subject to change as fieldwork is performed. It is possible that Hecla Limited’s liability will be more than $9.0 million, and any increase in liability could have a material adverse effect on Hecla Limited’s or our results of operations or financial position.

The Johnny M Mine is in an area known as the San Mateo Creek Basin (“SMCB”), which is an approximately 321 square mile area in New Mexico that contains numerous legacy uranium mines and mills. In addition to Johnny M, Hecla Limited’s predecessor was involved at other mining sites within the SMCB. The EPA appears to have deferred consideration of listing the SMCB site on CERCLA’s National Priorities List (“Superfund”) by removing the site from its emphasis list, and is working with various potentially responsible parties (“PRPs”) at the site in order to study and potentially address perceived groundwater issues within the SMCB. The EE/CA discussed above relates primarily to contaminated rock and soil at the Johnny M site, not groundwater and not elsewhere within the SMCB site. It is possible that Hecla Limited’s liability at the Johnny M Site, and for any other mine site within the SMCB at which Hecla Limited’s predecessor may have operated, will be greater than our current accrual of $9.0 million due to the increased scope of required remediation.

In July 2018, the EPA informed Hecla Limited that it and several other PRPs may be liable for cleanup of the SMCB site or for costs incurred by the EPA in cleaning up the site. The EPA stated it has incurred approximately $9.6 million in response costs to date. On May 2, 2022, Hecla Limited received a letter from a PRP notifying Hecla Limited that three PRPs will seek cost recovery and contribution from Hecla Limited under CERCLA for certain investigatory work performed by the PRPs at the SMCB site. Hecla Limited cannot with reasonable certainty estimate the amount or range of liability, if any, relating to this matter because of, among other reasons, the lack of information concerning the site, including the relative contributions of contamination by the various PRPs.

 

Carpenter Snow Creek and Barker-Hughesville Sites in Montana

In July 2010, the EPA made a formal request to Hecla for information regarding the Carpenter Snow Creek Superfund site located in Cascade County, Montana. The Carpenter Snow Creek site is located in a historical mining district, and in the early 1980s

Hecla Limited leased 6 mining claims and performed limited exploration activities at the site. Hecla Limited terminated the mining lease in 1988.

In June 2011, the EPA informed Hecla Limited that it believes Hecla Limited, and several other PRPs, may be liable for cleanup of the site or for costs incurred by the EPA in cleaning up the site. The EPA stated in the letter that it has incurred approximately $4.5 million in response costs and estimated that total remediation costs may exceed $100 million. Hecla Limited cannot with reasonable certainty estimate the amount or range of liability, if any, relating to this matter because of, among other reasons, the lack of information concerning the site, including the relative contributions of contamination by various other PRPs.

In February 2017, the EPA made a formal request to Hecla for information regarding the Barker-Hughesville Mining District Superfund site located in Judith Basin and Cascade Counties, Montana. Hecla Limited submitted a response in April 2017. The Barker-Hughesville site is located in a historic mining district, and between approximately June and December 1983, Hecla Limited was party to an agreement with another mining company under which limited exploration activities occurred at or near the site.

In August 2018, the EPA informed Hecla Limited that it and several other PRPs may be liable for cleanup of the site or for costs incurred by the EPA in cleaning up the site. The EPA did not include an amount of its alleged response costs to date. Hecla Limited cannot with reasonable certainty estimate the amount or range of liability, if any, relating to this matter because of, among other reasons, the lack of information concerning past or anticipated future costs at the site and the relative contributions of contamination by various other PRPs.

 

Greens Creek and Lucky Friday Environmental Issues

On June 30, 2022, our Greens Creek mine received a Notice of Violation (“NOV”) from the EPA alleging that the mine treated, stored, and disposed of certain hazardous waste without a permit in violation of the Resource Conservation and Recovery Act (“RCRA”), relating to the alleged presence of lead outside the concentrate storage building and the alleged improper reuse/recycling of certain materials produced from the on-site laboratories. The NOV contained two other less significant alleged violations. We disagree with several of the EPA’s allegations on a factual and legal basis.

Currently, the EPA has not initiated any formal enforcement proceeding against our Greens Creek subsidiary. In civil judicial cases, EPA can seek statutory penalties up to $81,540 per day per violation and, in administrative settlements, the EPA can seek administrative penalties of up to $47,423 per day per violation plus the economic benefit of noncompliance. The EPA typically pursues administrative penalties and assesses lower penalties on a per day basis. At this time, we cannot reasonably assess the amount of penalties the EPA may seek, or predict the terms of any potential settlement with the EPA.

On July 12, 2022, our Lucky Friday mine received a NOV from the EPA alleging violations of the Clean Water Act (“CWA”) between 2018 and 2021 relating primarily to concentration levels of zinc and lead in the mine’s permitted water discharges. Currently, the EPA has not initiated any formal enforcement proceeding against our Lucky Friday subsidiary. In civil judicial cases, the EPA can seek statutory penalties up to $59,973 per day per violation and, in administrative actions, the EPA can seek administrative penalties up to $23,989 per day per violation with a maximum administrative penalty of $299,989 for all alleged violations. The EPA typically pursues administrative penalties. At this time, we cannot reasonably assess the amount of penalties the EPA may seek, or predict the terms of any potential settlement with the EPA.

Litigation Related to Klondex Acquisition

On May 24, 2019, a purported Hecla stockholder filed a putative class action lawsuit in the U.S. District Court for the Southern District of New York against Hecla and certain of our executive officers, one of whom is also a director. The complaint, purportedly brought on behalf of all purchasers of Hecla common stock from March 19, 2018 through and including May 8, 2019, asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder and seeks, among other things, damages and costs and expenses. Specifically, the complaint alleges that Hecla, under the authority and control of the individual defendants, made certain material false and misleading statements and omitted certain material information regarding Hecla’s Nevada Operations. The complaint alleges that these misstatements and omissions artificially inflated the market price of Hecla common stock during the class period, thus purportedly harming investors. The Court granted our Motion to Dismiss the lawsuit, without prejudice, in February 2023, and the plaintiffs filed an amended complaint in March 2023 which repeats the same claims. We cannot predict the outcome of this lawsuit or estimate damages if plaintiffs were to prevail. We believe that these claims are without merit and intend to defend them vigorously.

Related to this class action lawsuit, Hecla has been named as a nominal defendant in a shareholder derivative lawsuit which also names as defendants certain current and past (i) members of Hecla’s board of directors and (ii) officers of Hecla. The case was filed

on May 4, 2022 in the Delaware Chancery Court. In general terms, the suit alleges breaches of fiduciary duties by the individual defendants, waste of corporate assets and unjust enrichment, and seeks damages, purportedly on behalf of Hecla.

Debt

See Note 7 for information on the commitments related to our debt arrangements as of March 31, 2023.

Other Commitments

Our contractual obligations as of March 31, 2023 included open purchase orders and commitments of approximately $15.2 million, $29.4 million, $1.3 million, $1.4 million and $3.7 million for various capital and non-capital items at Greens Creek, Lucky Friday, Casa Berardi, Nevada Operations and Keno Hill, respectively. We also have total commitments of approximately $20.7 million relating to scheduled payments on finance leases, including interest, primarily for equipment at our Greens Creek, Lucky Friday, Casa Berardi, and Keno Hill units, and total commitments of approximately $13.9 million relating to payments on operating leases (see Note 7 for more information). As part of our ongoing business and operations, we are required to provide surety bonds, bank letters of credit, and restricted deposits for various purposes, including financial support for environmental reclamation obligations and workers compensation programs. As of March 31, 2023, we had surety bonds totaling $192.8 million and letters of credit totaling $6.7 million in place as financial support for future reclamation and closure costs, self-insurance, and employee benefit plans. The obligations associated with these instruments are generally related to performance requirements that we address through ongoing operations. As the requirements are met, the beneficiary of the associated instruments cancels or returns the instrument to the issuing entity. Certain of these instruments are associated with operating sites with long-lived assets and will remain outstanding until closure of the sites. We believe we are in compliance with all applicable bonding requirements and will be able to satisfy future bonding requirements as they arise.

Other Contingencies

We also have certain other contingencies resulting from litigation, claims, EPA investigations, and other commitments and are subject to a variety of environmental and safety laws and regulations incident to the ordinary course of business. We currently have no basis to conclude that any or all of such contingencies will materially affect our financial position, results of operations or cash flows. However, in the future, there may be changes to these contingencies, or additional contingencies may occur, any of which might result in an accrual or a change in current accruals recorded by us, and there can be no assurance that their ultimate disposition will not have a material adverse effect on our financial position, results of operations or cash flows.

v3.23.1
Note 11 - Developments in Accounting Pronouncements
3 Months Ended
Mar. 31, 2023
Disclosure Text Block [Abstract]  
Developments in Accounting Pronouncements

Note 11. Developments in Accounting Pronouncements

Accounting Standards Updates Adopted

 

In March 2020, ASU No. 2020-04 was issued which provides optional guidance for a limited period of time to ease the potential burden on accounting for contract modifications caused by reference rate reform. In January 2021, ASU No. 2021-01 was issued which broadened the scope of ASU No. 2020-04 to include certain derivative instruments. In December 2022, ASU No. 2022-06 was issued which deferred the sunset date of ASU No. 2020-04. The guidance is effective for all entities as of March 12, 2020 through December 31, 2024. The guidance may be adopted over time as reference rate reform activities occur and should be applied on a prospective basis. Certain of our derivative instruments reference London Interbank Offered Rate ("LIBOR") based rates and are in the process of being amended to eliminate the LIBOR-based rate references prior to July 1, 2023. We do not expect a significant impact to our financial results, financial position or cash flows from the transition from LIBOR to alternative reference interest rates, but we will continue to monitor the impact of this transition until it is completed.

v3.23.1
Note 12 - Subsequent Events
3 Months Ended
Mar. 31, 2023
Subsequent Events [Abstract]  
Subsequent events

Note 12. Subsequent Events

 

On April 6, 2023, we and ATAC Resources Ltd. ("ATAC") a Canadian publicly traded company, announced a definitive agreement for one of our subsidiaries to acquire ATAC and its Rackla and Connaught projects in Yukon, Canada. Under the proposed transaction, our wholly-owned subsidiary, Alexco Resource Corp., would acquire all of the issued and outstanding shares of ATAC for a consideration of CAD$31 million, or 0.0166 of a share of Hecla common stock per common share of ATAC (consisting of 3,693,516 shares of Hecla common stock in aggregate). Hecla would also invest CAD$2 million in seed capital, equal to a 19.9% interest, for a new exploration company Cascadia Minerals Ltd. (“Cascadia”), which would be spun-out with certain properties to ATAC’s shareholders as part of the transaction. The total consideration to the ATAC shareholders, including the implied value for the shares in Cascadia (CAD$0.036/share), is CAD$39 million.

v3.23.1
Note 2 -Business Segments and Sales of Products (Tables)
3 Months Ended
Mar. 31, 2023
Table Text Block [Abstract]  
Schedule of Segment Reporting Information, by Segment [Table Text Block]

The following tables present information about our reportable segments metal sales for the three months ended March 31, 2023 and 2022 (in thousands):

 

 

Three Months Ended
March 31,

 

 

 

2023

 

 

2022

 

Net sales to unaffiliated customers:

 

 

 

 

 

 

Greens Creek

 

$

98,611

 

 

$

86,090

 

Lucky Friday

 

 

49,110

 

 

 

38,040

 

Keno Hill

 

 

 

 

 

 

Casa Berardi

 

 

50,998

 

 

 

62,101

 

Nevada Operations

 

 

272

 

 

 

268

 

Other

 

 

509

 

 

 

 

 

 

$

199,500

 

 

$

186,499

 

Income (loss) from operations:

 

 

 

 

 

 

Greens Creek

 

$

31,241

 

 

$

34,586

 

Lucky Friday

 

 

14,568

 

 

 

8,771

 

Keno Hill

 

 

(6,763

)

 

 

 

Casa Berardi

 

 

(13,693

)

 

 

(2,699

)

Nevada Operations

 

 

(5,410

)

 

 

(12,231

)

Other

 

 

(14,390

)

 

 

(13,669

)

 

 

$

5,553

 

 

$

14,758

 

 

The following table presents identifiable assets by reportable segment as of March 31, 2023 and December 31, 2022 (in thousands):

 

 

March 31, 2023

 

 

December 31, 2022

 

Identifiable assets:

 

 

 

 

 

 

Greens Creek

 

$

582,855

 

 

$

582,687

 

Lucky Friday

 

 

553,447

 

 

 

571,510

 

Keno Hill

 

 

303,340

 

 

 

276,096

 

Casa Berardi

 

 

693,763

 

 

 

681,631

 

Nevada Operations

 

 

465,037

 

 

 

466,722

 

Other

 

 

327,182

 

 

 

348,526

 

 

 

$

2,925,624

 

 

$

2,927,172

 

 

 

Revenue from External Customers by Products and Services [Table Text Block]

Sales by metal for the three month periods ended March 31, 2023 and 2022 were as follows (in thousands):

 

 

Three Months Ended March 31,

 

 

 

2023

 

 

2022

 

Silver

 

$

81,532

 

 

$

66,332

 

Gold

 

 

75,087

 

 

 

77,168

 

Lead

 

 

25,402

 

 

 

19,564

 

Zinc

 

 

32,943

 

 

 

35,638

 

Less: Smelter and refining charges

 

 

(15,973

)

 

 

(12,203

)

 

 

$

198,991

 

 

$

186,499

 

 

Sales of metals for the three month periods ended March 31, 2023 and 2022, included a net gain of $0.9 million and a net loss of $4.8 million, respectively, on financially-settled forward option contracts for silver, gold, lead and zinc. See Note 8 for more information.

v3.23.1
Note 3 - Income and Mining Taxes (Tables)
3 Months Ended
Mar. 31, 2023
Table Text Block [Abstract]  
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

Major components of our income and mining tax benefit (provision) for the three months ended March 31, 2023 and 2022 are as follows (in thousands):

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2023

 

 

2022

 

Current:

 

 

 

 

 

 

Domestic

 

$

(1,528

)

 

$

(2,103

)

Foreign

 

 

(1,174

)

 

 

(1,741

)

Total current income and mining tax provision

 

 

(2,702

)

 

 

(3,844

)

Deferred:

 

 

 

 

 

 

Domestic

 

 

(5,341

)

 

 

(5,091

)

Foreign

 

 

4,801

 

 

 

3,304

 

Total deferred income and mining tax provision

 

 

(540

)

 

 

(1,787

)

Total income and mining tax provision

 

$

(3,242

)

 

$

(5,631

)

v3.23.1
Note 4 - Employee Benefit Plans (Tables)
3 Months Ended
Mar. 31, 2023
Table Text Block [Abstract]  
Schedule of Net Benefit Costs [Table Text Block]

We sponsor three defined benefit pension plans covering substantially all U.S. employees. Net periodic pension cost for the plans consisted of the following for the three months ended March 31, 2023 and 2022 (in thousands):

 

 

Three Months Ended
March 31,

 

 

 

2023

 

 

2022

 

Service cost

 

$

949

 

 

$

1,566

 

Interest cost

 

 

1,993

 

 

 

1,369

 

Expected return on plan assets

 

 

(3,107

)

 

 

(3,363

)

Amortization of prior service cost

 

 

125

 

 

 

128

 

Amortization of net loss

 

 

(47

)

 

 

512

 

Net periodic pension (benefit) cost

 

$

(87

)

 

$

212

 

v3.23.1
Note 5 - (Loss) Income Per Common Share (Tables)
3 Months Ended
Mar. 31, 2023
Table Text Block [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

The following table represents net (loss) income per common share – basic and diluted (in thousands, except income (loss) per share):

 

 

Three Months Ended March 31,

 

 

 

2023

 

 

2022

 

Numerator

 

 

 

 

 

 

Net (loss) income

 

$

(3,173

)

 

$

4,153

 

Preferred stock dividends

 

 

(138

)

 

 

(138

)

Net (loss) income applicable to common shares

 

$

(3,311

)

 

$

4,015

 

 

 

 

 

 

 

 

Denominator

 

 

 

 

 

 

Basic weighted average common shares

 

 

600,075

 

 

 

538,490

 

Dilutive restricted stock units, warrants and deferred shares

 

 

 

 

 

5,571

 

Diluted weighted average common shares

 

 

600,075

 

 

 

544,061

 

 

 

 

 

 

 

 

Basic (loss) income per common share

 

$

(0.01

)

 

$

0.01

 

Diluted (loss) income per common share

 

$

(0.01

)

 

$

0.01

 

v3.23.1
Note 6 - Stockholders' Equity (Tables)
3 Months Ended
Mar. 31, 2023
Table Text Block [Abstract]  
Summary of Dividends Declared Pursuant to Dividend Policy

The following table summarizes the dividends our Board of Directors have declared and we have paid during 2023 pursuant to our dividend policy:

Quarter

 

Prior Quarter Realized Silver Price

 

Silver-linked component

 

Minimum component

 

Total dividend per share

First

 

22.03

 

$0.0025

 

$0.00375

 

$0.00625

v3.23.1
Note 7 - Debt, Credit Agreement and Leases (Tables)
3 Months Ended
Mar. 31, 2023
Table Text Block [Abstract]  
Schedule of Long-Term Debt Instruments

 

 

March 31, 2023

 

 

 

Senior Notes

 

 

IQ Notes

 

 

Total

 

Principal

 

$

475,000

 

 

$

35,643

 

 

$

510,643

 

Unamortized discount/premium and issuance costs

 

 

(4,415

)

 

 

356

 

 

 

(4,059

)

Long-term debt balance

 

$

470,585

 

 

$

35,999

 

 

$

506,584

 

 

 

 

December 31, 2022

 

 

 

Senior Notes

 

 

IQ Notes

 

 

Total

 

Principal

 

$

475,000

 

 

$

35,614

 

 

$

510,614

 

Unamortized discount/premium and issuance costs

 

 

(4,640

)

 

 

392

 

 

 

(4,248

)

Long-term debt balance

 

$

470,360

 

 

$

36,006

 

 

$

506,366

 

Schedule of Maturities of Long Term Debt and Finance and Operating Lease Liabilities

Twelve-month period ending March 31,

 

Senior Notes

 

 

IQ Notes

 

 

Finance Leases

 

 

Operating Leases

 

2024

 

$

34,438

 

 

$

2,322

 

 

$

8,812

 

 

$

2,652

 

2025

 

 

34,438

 

 

 

38,604

 

 

 

6,813

 

 

 

1,276

 

2026

 

 

34,438

 

 

 

 

 

 

3,681

 

 

 

1,281

 

2027

 

 

34,438

 

 

 

 

 

 

1,327

 

 

 

1,256

 

2028

 

 

505,131

 

 

 

 

 

 

23

 

 

 

1,161

 

Thereafter

 

 

 

 

 

 

 

 

 

 

 

6,307

 

 

 

 

642,883

 

 

 

40,926

 

 

 

20,656

 

 

 

13,933

 

Less: effect of discounting

 

 

 

 

 

 

 

 

(1,239

)

 

 

(3,285

)

Total

 

$

642,883

 

 

$

40,926

 

 

$

19,417

 

 

$

10,648

 

v3.23.1
Note 8 - Derivative Instruments (Tables)
3 Months Ended
Mar. 31, 2023
Table Text Block [Abstract]  
Schedule of Foreign Exchange Contracts, Statement of Financial Position [Table Text Block] fair value of the contracts (in millions):

 

 

March 31,

 

 

December 31,

 

Balance sheet line item:

 

2023

 

 

2022

 

Other current assets

 

$

1.6

 

 

$

1.1

 

Other non-current assets

 

 

0.8

 

 

 

0.4

 

Current derivative liabilities

 

 

3.6

 

 

 

4.0

 

Non-current derivative liabilities

 

$

3.1

 

 

$

3.6

 

Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block]

The following tables summarize the quantities of metals committed under forward sales contracts at March 31, 2023 and December 31, 2022:

 

March 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2023 settlements

 

 

3,350

 

 

 

8

 

 

 

15,543

 

 

 

18,133

 

 

$

22.27

 

 

$

1,883

 

 

$

1.35

 

 

$

1.01

 

Contracts on forecasted sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2023 settlements

 

 

 

 

 

 

 

 

29,873

 

 

 

38,581

 

 

 

 

 

 

 

 

$

1.47

 

 

$

1.00

 

2024 settlements

 

 

 

 

 

 

 

 

1,764

 

 

 

75,178

 

 

 

 

 

 

 

 

 

1.31

 

 

$

0.98

 

2025 settlements

 

 

 

 

 

 

 

 

 

 

 

882

 

 

$

 

 

$

 

 

$

 

 

$

0.97

 

 

December 31, 2022

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2023 settlements

 

 

3,124

 

 

 

8

 

 

 

18,629

 

 

 

11,960

 

 

$

21.55

 

 

$

1,795

 

 

$

1.38

 

 

$

0.98

 

Contracts on forecasted sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2023 settlements

 

 

 

 

 

 

 

 

37,533

 

 

 

75,618

 

 

N/A

 

 

N/A

 

 

$

1.34

 

 

$

1.00

 

2024 settlements

 

 

 

 

 

 

 

 

 

 

 

45,856

 

 

N/A

 

 

N/A

 

 

N/A

 

 

$

0.99

 

Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location [Table Text Block]

We recorded the following balances for the fair value of the forward contracts as of March 31, 2023 and December 31, 2022 (in millions):

 

 

March 31, 2023

 

 

December 31, 2022

 

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

 

$

5.3

 

 

$

 

 

$

5.3

 

 

$

1.2

 

 

$

 

 

$

1.2

 

Other non-current assets

 

$

1.3

 

 

$

 

 

$

1.3

 

 

$

0.1

 

 

$

 

 

$

0.1

 

Current derivative liabilities

 

 

 

 

 

(4.6

)

 

 

(4.6

)

 

 

 

 

 

(12.1

)

 

 

(12.1

)

Non-current derivative liabilities

 

 

 

 

 

(0.05

)

 

 

(0.1

)

 

 

 

 

 

(2.5

)

 

 

(2.5

)

v3.23.1
Note 9 - Fair Value Measurement (Tables)
3 Months Ended
Mar. 31, 2023
Table Text Block [Abstract]  
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Table Text Block]

Fair value adjustments, net is comprised of the following:

 

 

Three Months Ended March 31,

 

 

 

2023

 

 

2022

 

Gain (loss) on derivative contracts

 

$

987

 

 

$

(201

)

Unrealized gain on equity securities investments

 

 

2,194

 

 

 

6,100

 

Gain on disposition or exchange of investments

 

 

 

 

 

66

 

Total fair value adjustments, net

 

$

3,181

 

 

$

5,965

 

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

The table below sets forth our assets and liabilities that were accounted for at fair value on a recurring basis and the fair value calculation input hierarchy level that we have determined applies to each asset and liability category (in thousands).

Description

 

Balance at
March 31,
2023

 

 

Balance at
December 31,
2022

 

 

Input
Hierarchy Level

Assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents:

 

 

 

 

 

 

 

 

Money market funds and other bank deposits

 

$

95,939

 

 

$

104,743

 

 

Level 1

Current and non-current investments

 

 

 

 

 

 

 

 

Equity securities - mining industry

 

 

26,434

 

 

 

24,018

 

 

Level 1

Trade accounts receivable:

 

 

 

 

 

 

 

 

Receivables from provisional concentrate sales

 

 

28,535

 

 

 

45,146

 

 

Level 2

Restricted cash balances:

 

 

 

 

 

 

 

 

Certificates of deposit and other deposits

 

 

1,347

 

 

 

1,164

 

 

Level 1

Derivative contracts - current and non-current derivatives assets:

 

 

 

 

 

 

 

 

Foreign exchange contracts

 

 

2,359

 

 

 

1,518

 

 

Level 2

Metal forward contracts

 

 

6,636

 

 

 

1,309

 

 

Level 2

Total assets

 

$

161,250

 

 

$

177,898

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

Derivative contracts - current derivatives liabilities and other non-current
liabilities:

 

 

 

 

 

 

 

 

Foreign exchange contracts

 

$

6,674

 

 

$

7,548

 

 

Level 2

Metal forward contracts

 

 

4,682

 

 

 

14,643

 

 

Level 2

Total liabilities

 

$

11,356

 

 

$

22,191

 

 

 

v3.23.1
Note 2 - Business Segments and Sales of Products (Details Textual) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Environmental Services [Member]    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Revenues $ 0.5  
Financially-settled Forward Contracts [Member]    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Derivative, Gain (Loss) on Derivative, Net, Total $ 0.9 $ (4.8)
v3.23.1
Note 2 - Business Segments and Sales of Products - Information About Reportable Segments (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Dec. 31, 2022
Segment Reporting, Revenue Reconciling Item [Line Items]      
Net sales $ 199,500 $ 186,499  
Income (loss) from operations 5,553 14,758  
Identifiable assets 2,925,624   $ 2,927,172
Greens Creek [Member]      
Segment Reporting, Revenue Reconciling Item [Line Items]      
Net sales 98,611 86,090  
Income (loss) from operations 31,241 34,586  
Identifiable assets 582,855   582,687
Lucky Friday [Member]      
Segment Reporting, Revenue Reconciling Item [Line Items]      
Net sales 49,110 38,040  
Income (loss) from operations 14,568 8,771  
Identifiable assets 553,447   571,510
Keno Hill [Member]      
Segment Reporting, Revenue Reconciling Item [Line Items]      
Net sales 0 0  
Income (loss) from operations (6,763) 0  
Identifiable assets 303,340   276,096
Casa Berardi [Member]      
Segment Reporting, Revenue Reconciling Item [Line Items]      
Net sales 50,998 62,101  
Income (loss) from operations (13,693) (2,699)  
Identifiable assets 693,763   681,631
Nevada Operations [Member]      
Segment Reporting, Revenue Reconciling Item [Line Items]      
Net sales 272 268  
Income (loss) from operations (5,410) (12,231)  
Identifiable assets 465,037   466,722
Other Segments [Member]      
Segment Reporting, Revenue Reconciling Item [Line Items]      
Net sales 509 0  
Income (loss) from operations (14,390) $ (13,669)  
Identifiable assets $ 327,182   $ 348,526
v3.23.1
Note 2 - Business Segments and Sales of Products - Sales of Products (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Segment Reporting, Revenue Reconciling Item [Line Items]    
Net sales $ 199,500 $ 186,499
Less: Smelter and refining charges (15,973) (12,203)
Net sales 198,991 186,499
Silver Contracts [Member]    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Net sales 81,532 66,332
Gold [Member]    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Net sales 75,087 77,168
Lead [Member]    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Net sales 25,402 19,564
Zinc [Member]    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Net sales $ 32,943 $ 35,638
v3.23.1
Note 3 - Income and Mining Taxes - Major Components of Income Tax Provision (Benefit) (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Domestic $ (1,528) $ (2,103)
Foreign (1,174) (1,741)
Total current income and mining tax provision (2,702) (3,844)
Domestic (5,341) (5,091)
Foreign 4,801 3,304
Total deferred income and mining tax provision (540) (1,787)
Total income and mining tax provision $ 3,242 $ 5,631
v3.23.1
Note 4 - Employee Benefit Plans (Details Textual) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Nonoperating Income (Expense) [Member]    
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]    
Net Periodic Defined Benefits Expense (Reversal of Expense), Excluding Service Cost Component $ 1.0 $ 1.4
v3.23.1
Note 4 - Employee Benefit Plans - Net Periodic Pension Cost (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]    
Defined Benefit Plan, Service Cost $ 949 $ 1,566
Defined Benefit Plan, Interest Cost 1,993 1,369
Expected return on plan assets (3,107) (3,363)
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) 125 128
Amortization of net loss 47 512
Net periodic pension cost $ 87 $ 212
v3.23.1
Note 5 - (Loss) Income Per Common Share (Details Textual)
3 Months Ended
Mar. 31, 2023
shares
Earnings Per Share [Abstract]  
Incremental Common Shares Attributable to Dilutive Effect of Share-Based Payment Arrangements (in shares) 1,954,773
Incremental Common Shares Attributable to Dilutive Effect of Call Options and Warrants (in shares) 1,506,950
Incremental Common Shares Attributable to Dilutive Effect of Deferred Shares (in shares) 2,109,056
v3.23.1
Note 5 - (Loss) Income Per Common Share - Net Income Per Common Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Notes To Financial Statements [Abstract]    
Net (loss) income $ (3,173) $ 4,153
Preferred stock dividends (138) (138)
Net (loss) income applicable to common shares $ (3,311) $ 4,015
Basic weighted average common shares (in shares) 600,075,000 538,490,000
Dilutive restricted stock units, warrants and deferred shares   5,571,000
Diluted weighted average common shares (in shares) 600,075,000 544,061,000
Basic (loss) income per common share (in dollars per share) $ (0.01) $ 0.01
Diluted (loss) income per common share (in dollars per share) $ (0.01) $ 0.01
v3.23.1
Note 6 - Stockholders' Equity (Details Textual) - USD ($)
$ / shares in Units, $ in Millions
3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Feb. 18, 2021
Subsidiary or Equity Method Investee [Line Items]      
Share-Based Payment Arrangement, Expense $ 1.2 $ 1.3  
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total $ 5.2    
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) 1 year 2 months 12 days    
Share-Based Payment Arrangement, Shares Withheld for Tax Withholding Obligation (in shares) 96,659    
Share-Based Payment Arrangement, Decrease for Tax Withholding Obligation $ 0.5    
Shares Withheld for Tax Withholding Obligation, Price Per Share (in dollars per share) $ 4.98    
At the market Offering [Member]      
Subsidiary or Equity Method Investee [Line Items]      
Equity Distribution Agreement, Maximum Number of Shares to be Sold (in shares) 2,173,274   60,000,000
Proceeds from Issuance or Sale of Equity $ 11.9    
Payments of Stock Issuance Costs $ 0.2    
At the market Offering [Member] | At The Market Equity Distribution Agreement [Member]      
Subsidiary or Equity Method Investee [Line Items]      
Equity Distribution Agreement, Maximum Number of Shares to be Sold (in shares) 6,033,473    
Proceeds from Issuance or Sale of Equity $ 29.2    
Payments of Stock Issuance Costs $ 0.5    
v3.23.1
Note 6 - Stockholders' Equity - Summary of Dividends Declared Pursuant to Dividend Policy (Detail) - First Quarterly Dividends [Member]
3 Months Ended
Mar. 31, 2023
$ / shares
Subsidiary or Equity Method Investee [Line Items]  
Prior Quarter Realized Silver Price $ 22.03
Silver-linked component 0.0025
Minimum component 0.00375
Total dividend per share $ 0.00625
v3.23.1
Note 7 - Debt, Credit Agreement and Leases (Details Textual) - USD ($)
3 Months Ended
Jul. 21, 2022
Mar. 31, 2023
Dec. 31, 2022
New Credit Agreement [Member] | Revolving Credit Facility [Member]      
Line of Credit Facility [Line Items]      
Line of Credit Facility, Maximum Borrowing Capacity $ 150,000,000    
Letters of credit outstanding, amount   $ 6,700  
Line of Credit Facility, Maximum Borrowing Capacity, Option $ 75,000,000    
Letters of Credit Outstanding, Amount   $ 6,700  
New Credit Agreement [Member] | Revolving Credit Facility [Member] | Fed Funds Effective Rate Overnight Index Swap Rate [Member]      
Line of Credit Facility [Line Items]      
Debt Instrument, Basis Spread on Variable Rate 50.00%    
New Credit Agreement [Member] | Revolving Credit Facility [Member] | Minimum [Member]      
Line of Credit Facility [Line Items]      
Line of Credit Facility, Commitment Fee Percentage 0.45%    
New Credit Agreement [Member] | Revolving Credit Facility [Member] | Minimum [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member]      
Line of Credit Facility [Line Items]      
Debt Instrument, Basis Spread on Variable Rate   2.00%  
New Credit Agreement [Member] | Revolving Credit Facility [Member] | Minimum [Member] | Base Rate [Member]      
Line of Credit Facility [Line Items]      
Debt Instrument, Basis Spread on Variable Rate   1.00%  
Debt Instrument, Basis Spread on Variable Rate, Applicable Margin 1.00%    
New Credit Agreement [Member] | Revolving Credit Facility [Member] | Minimum [Member] | Leverage Ratio Applicable Margin [Member]      
Line of Credit Facility [Line Items]      
Debt instrument, participation fee, percent 2.00%    
New Credit Agreement [Member] | Revolving Credit Facility [Member] | Maximum [Member]      
Line of Credit Facility [Line Items]      
Line of Credit Facility, Commitment Fee Percentage 0.7875%    
New Credit Agreement [Member] | Revolving Credit Facility [Member] | Maximum [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member]      
Line of Credit Facility [Line Items]      
Debt Instrument, Basis Spread on Variable Rate   3.50%  
New Credit Agreement [Member] | Revolving Credit Facility [Member] | Maximum [Member] | Base Rate [Member]      
Line of Credit Facility [Line Items]      
Debt Instrument, Basis Spread on Variable Rate   2.50%  
New Credit Agreement [Member] | Revolving Credit Facility [Member] | Maximum [Member] | Leverage Ratio Applicable Margin [Member]      
Line of Credit Facility [Line Items]      
Debt instrument, participation fee, percent 3.50%    
Senior Notes [Member] | The 2028 Senior Notes [Member]      
Line of Credit Facility [Line Items]      
Debt Instrument, Interest Rate, Stated Percentage   7.25% 7.25%
Senior Notes [Member] | New Credit Agreement [Member]      
Line of Credit Facility [Line Items]      
Letters of credit, drawn amount   $ 150,000,000  
v3.23.1
Note 7 - Debt, Credit Agreement and Leases - Debt Summary (Details) - Senior Notes [Member] - USD ($)
$ in Thousands
Mar. 31, 2023
Dec. 31, 2022
Line of Credit Facility [Line Items]    
Long-Term Debt, Gross $ 510,643 $ 510,614
Unamortized discount/premium and issuance costs (4,059) (4,248)
Long-term debt balance 506,584 506,366
The 2028 Senior Notes [Member]    
Line of Credit Facility [Line Items]    
Long-Term Debt, Gross 475,000 475,000
Unamortized discount/premium and issuance costs (4,415) (4,640)
Long-term debt balance 470,585 470,360
IQ Notes [Member]    
Line of Credit Facility [Line Items]    
Long-Term Debt, Gross 35,643 35,614
Unamortized discount/premium and issuance costs 356 392
Long-term debt balance $ 35,999 $ 36,006
v3.23.1
Note 7 - Debt, Credit Agreement and Leases - Future Payments of Long-term Debt and Finance and Operating Leases (Details)
$ in Thousands
Mar. 31, 2023
USD ($)
Line of Credit Facility [Line Items]  
2024, operating leases $ 2,652
2025, operating leases 1,276
2026, operating leases 1,281
2027, operating leases 1,256
2028, operating leases 1,161
Thereafter, operating leases 6,307
Total, operating 13,933
Less: effect of discounting, operating leases (3,285)
Operating lease liability 10,648
2024, finance leases 8,812
2025, finance leases 6,813
2026, finance leases 3,681
2027, finance leases 1,327
2028, finance leases 23
Total, finance leases 20,656
Less: effect of discounting, Finance Leases (1,239)
Finance lease, liability 19,417
IQ Notes [Member]  
Line of Credit Facility [Line Items]  
2024, long-term debt 2,322
2025, long-term debt 38,604
Total, long term Debt 40,926
Long-term debt 40,926
Senior Notes [Member]  
Line of Credit Facility [Line Items]  
2024, long-term debt 34,438
2025, long-term debt 34,438
2026, long-term debt 34,438
2027, long-term debt 34,438
2028, long-term debt 505,131
Total, long term Debt 642,883
Long-term debt $ 642,883
v3.23.1
Note 8 - Derivative Instruments (Details Textual)
$ in Thousands, $ in Millions
3 Months Ended
Mar. 31, 2023
USD ($)
Contract
Mar. 31, 2022
USD ($)
Mar. 31, 2023
CAD ($)
Contract
Derivative [Line Items]      
Maximum Allocation of Forecasted CAD-demonimated Operating Costs 75.00%   75.00%
Forecasted CAD-denominated Operating Costs to be Hedged, Term (Year) 5 years    
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net $ 900    
Gain (Loss) on Components Excluded from Assessment of Foreign Currency Cash Flow Hedge Effectiveness 0    
Price Risk Cash Flow Hedge Unrealized Gain (Loss) to be Reclassified During Next 12 Months 15,200    
Other Comprehensive Income (Loss) [Member]      
Derivative [Line Items]      
Foreign Currency Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months 3,300    
Derivative, Gain (Loss) on Derivative, Net, Total 17,400    
Foreign Exchange Forward [Member]      
Derivative [Line Items]      
AOCI, Cash Flow Hedge, Cumulative Gain (Loss), after Tax $ 6,100    
Foreign Exchange Forward [Member] | Casa Berardi [Member]      
Derivative [Line Items]      
Derivative, Notional Amount     $ 393.9
Foreign Exchange Forward [Member] | Casa Berardi [Member] | Minimum [Member]      
Derivative [Line Items]      
Derivative, Forward Exchange Rate 0.001272   0.001272
Foreign Exchange Forward [Member] | Casa Berardi [Member] | Maximum [Member]      
Derivative [Line Items]      
Derivative, Forward Exchange Rate 0.00013757   0.00013757
Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | Casa Berardi [Member]      
Derivative [Line Items]      
Derivative, Number of Instruments Held, Total | Contract 569   569
Derivative, Notional Amount $ 454,700   $ 604.8
Foreign Exchange Forward [Member] | Not Designated as Hedging Instrument [Member]      
Derivative [Line Items]      
Unrealized Gain (Loss) on Derivatives 700    
Price Risk Derivative [Member]      
Derivative [Line Items]      
AOCI, Cash Flow Hedge, Cumulative Gain (Loss), after Tax 24,800    
Unsettled Concentrate Sales Contracts [Member]      
Derivative [Line Items]      
Derivative, Gain (Loss) on Derivative, Net, Total 900    
Price Risk Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net 3,000    
Forecasted Future Concentrate Contracts [Member]      
Derivative [Line Items]      
Derivative, Gain (Loss) on Derivative, Net, Total 4,800 $ 4,800  
Commodity Contract [Member]      
Derivative [Line Items]      
Derivative Liability, Subject to Master Netting Arrangement, before Offset of Collateral, Total 14,000    
Derivative, Fair Value, Obligations Under the Agreements $ 14,000    
v3.23.1
Note 8 - Derivative Instruments - Foreign Currency (Details) - USD ($)
$ in Thousands
Mar. 31, 2023
Dec. 31, 2022
Derivative [Line Items]    
Non-current derivatives assets $ 80 $ 40
Foreign Exchange Contract [Member]    
Derivative [Line Items]    
Current derivatives assets 160 110
Current derivatives liabilities 360 400
Non-current derivatives liabilities $ 310 $ 360
v3.23.1
Note 8 - Derivative Instruments - Summary of Forward Sales Contracts (Details)
oz in Thousands, lb in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2023
lb
oz
$ / $
$ / oz
Dec. 31, 2022
oz
lb
$ / $
$ / oz
Silver 2022 Settlements for Provisional Sales [Member]    
Derivative [Line Items]    
Derivative, Nonmonetary Notional Amount, Mass | oz 3,350 3,124
Underlying, Derivative Mass | $ / oz 22.27 21.55
Gold 2022 Settlements for Provisional Sales [Member]    
Derivative [Line Items]    
Derivative, Nonmonetary Notional Amount, Mass | oz 8 8
Underlying, Derivative Mass | $ / oz 1,883 1,795
Zinc 2022 Settlements for Provisional Sales [Member]    
Derivative [Line Items]    
Derivative, Nonmonetary Notional Amount, Mass | lb 15,543 18,629
Underlying, Derivative Mass | $ / $ 1.35 1.38
Lead 2022 Settlements for Provisional Sales [Member]    
Derivative [Line Items]    
Derivative, Nonmonetary Notional Amount, Mass | lb 18,133 11,960
Underlying, Derivative Mass | $ / $ 1.01 0.98
Silver 2023 Settlements for Forecasted Sales [Member]    
Derivative [Line Items]    
Derivative, Nonmonetary Notional Amount, Mass | oz 0 0
Gold 2023 Settlements for Forecasted Sales [Member]    
Derivative [Line Items]    
Derivative, Nonmonetary Notional Amount, Mass | oz 0 0
Zinc 2023 Settlements for Forecasted Sales [Member]    
Derivative [Line Items]    
Derivative, Nonmonetary Notional Amount, Mass 29,873 37,533
Underlying, Derivative Mass | $ / $ 1.47 1.34
Lead 2023 Settlements for Forecasted Sales [Member]    
Derivative [Line Items]    
Derivative, Nonmonetary Notional Amount, Mass 38,581 75,618
Underlying, Derivative Mass | $ / $ 1.00 1.00
Silver 2024 Settlements for Forecasted Sales [Member]    
Derivative [Line Items]    
Derivative, Nonmonetary Notional Amount, Mass | oz 0 0
Gold 2024 Settlements for Forecasted Sales [Member]    
Derivative [Line Items]    
Derivative, Nonmonetary Notional Amount, Mass | oz 0 0
Zinc 2024 Settlements for Forecasted Sales [Member]    
Derivative [Line Items]    
Derivative, Nonmonetary Notional Amount, Mass 1,764 0
Underlying, Derivative Mass | $ / oz 1.31  
Lead 2024 Settlements for Forecasted Sales [Member]    
Derivative [Line Items]    
Derivative, Nonmonetary Notional Amount, Mass | lb 75,178 45,856
Underlying, Derivative Mass | $ / $ 0.98 0.99
Lead 2025 Settlements For Forecasted Sales [Member]    
Derivative [Line Items]    
Derivative, Nonmonetary Notional Amount, Mass | lb 882  
Underlying, Derivative Mass | $ / $ 0.97  
v3.23.1
Note 8 - Derivative Instruments - Fair Value of Forward and Put Option Contracts (Details) - USD ($)
$ in Thousands
Mar. 31, 2023
Dec. 31, 2022
Other Current Assets [Member]    
Derivative [Line Items]    
Current derivatives assets $ 5,300 $ 1,200
Contracts in liability position 0 0
Net asset (liability) 5,300 1,200
Other Noncurrent Assets [Member]    
Derivative [Line Items]    
Current derivatives assets 1,300 100
Contracts in liability position 0 0
Net asset (liability) 1,300 100
Current derivatives liability [Member]    
Derivative [Line Items]    
Current derivatives assets 0 0
Contracts in liability position 4,600 12,100
Net asset (liability) (4,600) (12,100)
Other Noncurrent Liabilities [Member]    
Derivative [Line Items]    
Current derivatives assets 0 0
Contracts in liability position 50 2,500
Net asset (liability) $ (100) $ (2,500)
v3.23.1
Note 9 - Fair Value Measurement (Details Textual)
Mar. 31, 2023
USD ($)
IQ Notes [Member]  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Notes Payable, Total $ 36,000,000.0
Fair Value, Inputs, Level 3 [Member] | IQ Notes [Member] | Measurement Input, Annual Yield [Member]  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Debt Instrument, Measurement Input 0.071
Senior Notes [Member]  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Notes Payable, Total $ 470,600,000
Senior Notes [Member] | Fair Value, Inputs, Level 1 [Member]  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Notes Payable, Fair Value Disclosure 480,600,000
Senior Notes [Member] | Fair Value, Inputs, Level 1 [Member] | IQ Notes [Member]  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Notes Payable, Fair Value Disclosure $ 35,700,000
v3.23.1
Note 9 - Fair Value Measurement - Details of Fair Value Adjustment (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Asset (Liability), Recurring Basis, Still Held, Unrealized Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, after Tax Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, after Tax
Total fair value adjustments, net $ 3,181 $ 5,965
Fair Value, Inputs, Level 1 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Unrealized loss on investments in equity securities 2,194 6,100
Derivative [Member] | Fair Value, Inputs, Level 3 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
(Loss) gain on disposition or exchange of investments $ 987 $ (201)
Securities Investment [Member] | Fair Value, Inputs, Level 3 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Asset (Liability), Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Other Operating Income (Expense), Net Other Operating Income (Expense), Net
Securities Investment [Member] | Fair Value, Inputs, Level 1 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
(Loss) gain on disposition or exchange of investments $ 0 $ 66
v3.23.1
Note 9 - Fair Value Measurement - Assets and Liabilities Accounted for at Fair Value (Details) - USD ($)
$ in Thousands
Mar. 31, 2023
Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Receivables from provisional concentrate sales $ 13,216 $ 10,695
Fair Value, Recurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total assets 161,250 177,898
Total liabilities 11,356 22,191
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Money market funds and other bank deposits 95,939 104,743
Equity securities 26,434 24,018
Certificates of deposit and other deposits 1,347 1,164
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Receivables from provisional concentrate sales 28,535 45,146
Foreign exchange contracts 2,359 1,518
Metal forward and put option contracts $ 6,636 $ 1,309
Derivative Asset, Statement of Financial Position [Extensible Enumeration] Assets Assets
Foreign exchange contracts $ 6,674 $ 7,548
Metal forward and put option contracts $ 4,682 $ 14,643
Derivative Liability, Statement of Financial Position [Extensible Enumeration] Liabilities Liabilities
v3.23.1
Note 10 - Commitments, Contingencies and Obligations (Details Textual) - USD ($)
$ in Thousands
1 Months Ended 3 Months Ended
Jul. 12, 2022
Jun. 30, 2022
Jul. 31, 2018
Aug. 31, 2012
Jun. 30, 2011
Mar. 31, 2023
Mar. 31, 2022
Mar. 31, 2021
Loss Contingencies [Line Items]                
Environmental remediation expense           $ 1,044 $ 901  
Finance lease, liability, to be paid           20,656    
Lessee, operating lease, liability, to be paid           13,933    
Lease Commitments [Member]                
Loss Contingencies [Line Items]                
Finance lease, liability, to be paid           20,700    
Lessee, operating lease, liability, to be paid           13,900    
Performance Obligation Commitments [Member]                
Loss Contingencies [Line Items]                
Surety Bonds           192,800    
Letters of credit outstanding, amount           6,700    
Greens Creek [Member]                
Loss Contingencies [Line Items]                
EPA maximum for statutory penalties, per day/violation   $ 81,540            
EPA maximum for administrative penalties, per day/violation   $ 47,423            
Greens Creek [Member] | Purchase Orders and Commitment [Member]                
Loss Contingencies [Line Items]                
Contractual obligation           15,200    
Lucky Friday [Member]                
Loss Contingencies [Line Items]                
EPA maximum for statutory penalties, per day/violation $ 59,973              
EPA maximum for administrative penalties, per day/violation 23,989              
EPA maximum for administrative penalties $ 299,989              
Lucky Friday [Member] | Purchase Orders and Commitment [Member]                
Loss Contingencies [Line Items]                
Contractual obligation           29,400    
Casa Berardi [Member] | Purchase Orders and Commitment [Member]                
Loss Contingencies [Line Items]                
Contractual obligation           1,300    
Nevada Operations [Member] | Purchase Orders and Commitment [Member]                
Loss Contingencies [Line Items]                
Contractual obligation           1,400    
Keno Hill [Member] | Purchase Orders and Commitment [Member]                
Loss Contingencies [Line Items]                
Contractual obligation           $ 3,700    
Johnny M Mine Area near San Mateo, New Mexico [Member]                
Loss Contingencies [Line Items]                
Payment of response costs       $ 1,100        
Estimated response costs     $ 9,600          
Environmental remediation expense               $ 9,000
Johnny M Mine Area near San Mateo, New Mexico [Member] | Environmental Remediation, Past Response Costs [Member]                
Loss Contingencies [Line Items]                
Accrual for environmental loss contingencies, period increase (decrease)               $ 9,000
Carpenter Snow Creek Superfund Site, Cascade County, Montana [Member]                
Loss Contingencies [Line Items]                
Estimated response costs         $ 4,500      
Estimated future response cost         $ 100,000      
v3.23.1
Subsequent events (Additional Information) (Details) - Apr. 06, 2023 - Subsequent Event [Member]
$ in Thousands
CAD ($)
shares
$ / shares
Alexco Resource Corp    
Subsequent Event [Line Items]    
Common stock value $ 31,000  
Common stock per share | $ / shares   $ 0.0166
Shareholders Implied Value 36  
Total Implied Value 39,000  
Hecla    
Subsequent Event [Line Items]    
Capital Invest $ 2,000  
Interest Rate 19.90%  
Canada | Alexco Resource Corp    
Subsequent Event [Line Items]    
Common stock outstanding shares | shares 3,693,516